Vol. 11 No. 1                                                                                                                   Tuesday January 3, 2012

 

Bankruptcy For Cargoitalia

     Shortly before Christmas, FlyingTypers was told by sources close to the case, that Milan-based Cargoitalia had ceased all operations due to mounting financial losses. The carrier has since then informed its Italian customers that the airline will be dissolved and liquidated. Ongoing market weakness and fierce competition led to the collapse; so reads a statement issued by the privately owned Italian airline.      The company also cites in its press statement that the decision to establish a ‘Cargolux Italia’ subsidiary with four weekly freighter flights via Malpensa-Hong Kong on B747-400F aircraft hurt Cargoitalia and hampered its business opportunities considerably.
     Cargoitalia operated three MD-11 freighters and had signed firm orders for five A330-200Fs. It was only as of late that the heavily indebted carrier changed its strategy by reducing line-haul flights and offering customers ACMI solutions together with a new charter product called ‘Ondemand.’
     Moreover, the airline partnered with Togo’s cargo carrier Africa West, operating flights between Liege and Lome and feeding European exports into Africa West’s regional network in the Ivory Coast, Ghana, Nigeria, Cameroon or Angola. In addition, Cargoitalia helped out Lufthansa Cargo by offering additional capacity on U.S.-bound flights out of Germany. This temporary deal expired prior to the Italian carrier’s financial crash, Lufthansa Cargo’s head of communication, Nils Haupt told FlyingTypers.
     All these efforts, however, have obviously come too late to save the airline’s fate, as reality shows.
     Alis Aerolinee Italiane purchased the carrier in December 2008, mainly to get the air operator certificate held by Cargoitalia. Flights were resumed in May 2009 with a singleMD-11F. Shortly after, two passenger to freighter-converted aircraft from Alitalia’s stock increased the fleet. But sources claim that these planes were highly inefficient, thus deepening daily the already abysmal hole in Cargoitalia’s cash.
Heiner Siegmund

 

Global Logistics Network
"Power Of One"

     Global Logistics Network (GLN) held its annual global meeting (AGM) one step ahead of the terrible flooding in Bangkok (October 10-12, 2011), bringing together several hundred leading worldwide, independently-owned and operated companies that specialize in the logistics industry.
     GLN membership includes freight forwarders, transportation intermediaries and associated companies, which, in the words of GLN founder Roy Stapleton, “all work together in a network environment to benefit from our ‘Power of One’ philosophy.”
     “For the 9th consecutive year, the prior year’s conference turnout was exceeded.
     “This year, despite the challenging business climate, more than 309 attendees from 208 member companies were in attendance at Bangkok.
     "We estimate that number multiplies itself into more than 9,636 one-on-one member meetings held.
     “The great strength of our organization is in the cooperation and open dialogue that goes on between our members,” Roy Stapleton said.
     Founded in 2003, GLN is an ISO 9001:2008 Certified organization that has a global presence that spans 515 Offices in 277 Cities and 108 Countries.
     A powerful economic force, GLN membership boasts combined Annual Revenues of USD 7.9 Billion and 19,163 experienced and capable staff handling over 1 million shipments per year.
     Put another way, GLN is larger in size than many multi-national forwarders and integrators.
     But perhaps the best thing that can be said about GLN came most recently from the membership, some of whom traveled from halfway around the world to attend this years ninth annual AGM.
     Riccardo Fioravanti of FIORAVANTI S.r.l. (Italy) said:
     “A great and wonderfully organized GLN Annual Meeting.
     “It is a great pleasure for me and an important source of my professional growth to attend the GLN meetings.”
     Likewise, this comment from Suresh Nair, Manager - Sales and Services Worldwide of Oman Air Cargo, expresses praise for the meeting:
     “It was a wonderful experience to represent Oman Air Cargo at the 9th GLN conference.
     “I especially appreciated all the assistance from GLN extended to accommodate our last minute changes.”
Barry Castle, International Sales & Development Manager, Asia Pacific & Middle East, Air & Cargo Services, Ltd. praises GLN as “A well arranged and professionally organized conference.
     “It was a splendid occasion with a great turn out of delegates and I am sure I speak on behalf of the majority.
     “The hard work starts now, but I am most confident we will see some good rewards from the many new relationships we were able to establish.
     “I have attended other cargo network conferences, but you guys win, hands down.
     “To use an old cliché, ‘We get more kicks than bouquets,’ but let me give credit where it’s due.
     “Well done GLN.”
     Next up for Global Logistics Network is the upcoming gala tenth anniversary AGM (again in Bangkok).
     “Our ‘Tenth AGM’ gathering on October 10, 2012, will include some surprises, but the core activity will still be in the networking of our enthusiastic membership
     “Des Vertannes IATA Head of Cargo will deliver the keynote and we are hopeful that some other luminaries of air cargo will be able to attend,” said Mr. Stapleton.
     “The purpose and objectives of GLN are to act as a worldwide umbrella network of selected members who cooperate under established standards, actively promote and support each other in the handling of profitable freight forwarding, logistics, customs brokerage and related services by the pooling of sales, operational and financial resources.
     “GLN is about empowering members with the capability to meet customers “Critical Success Factors” so that they may effectively compete with multi-nationals and integrators using innovative marketing and IT initiatives.
     “Our membership embraces a GLN global branding culture for the purpose of RFQ/RFP opportunities.
     “We are actively working to attract and maintain members who are the leaders in their own local markets with a global vision mentality; that maintain and surpass client satisfaction with a reputable status aligned with the highest integrity and service commitment versus accepted industry standards, while promoting a network methodology that adheres to a philosophy of on-going and continuous quality improvement,” said Mr. Stapleton.
More: http://www.go2gln.com

 

FedEx Absolutely Positively NOT

     I recently sent two international express shipments by air using my FedEx account. Despite the rather hefty price tag, which is generally associated with its reliable service and reputation, one express shipment ended up being two days late and the second express shipment was three days late.
     Having paid a premium, I contacted FedEx and was informed that because the billing cycle hadn’t run yet, I should wait 2-3 weeks and contact them again for a credit and refund.
     There was no dispute regarding the late deliveries.
     I wondered why, when there is a clear service failure by the provider, it is the customer who has to call again rather than FedEx getting back to me, but I was told that’s how it works.
     One thing led to the next, travel, being busy, so to make a long story short, I called FedEx this week to get the matter off the pending list.
     After having gone through the byzantine telephone prompter, repeated loops and yelling at the mouthpiece—yes, I still use a landline phone when I am in the office—the software finally figured out I was beyond automated help and a representative came online.
     I provided the tracking numbers, the respective records were located and I was asked to hold.
     About five minutes later the polite agent informed me that despite a valid service failure, the FedEx policy requires that a claim be made within 45 days and referenced the small print on the reverse of the air waybill – Conditions of Contract.
     I wasn’t shy about expressing my disbelief, outrage, surprise and disappointment that a corporation I previously held in high regard would employ such shenanigans and resort to tactics I would not have associated with a company of FedEx’s repute.
     I stand corrected.
     To be factual, under “Claims for Loss, Damage, or Delay” it states “…all claims must be made in writing and within strict time limits.”
     The only place the 45 days are mentioned is actually in a rather different context, namely, “Within 45 days after notification to us of the claim, it must be documented by sending to us all relevant information about it.” There should have been a record of my initial contact and claim, but that didn’t matter.
     Furthermore, I pointed out that in the course of that initial conversation I was not made aware or informed that while I needed to follow the FedEx internal invoicing procedures and call back a couple of weeks later, there was a potential expiry date for such a claim.
     It didn’t honestly occur to me to check the reverse side of the air waybill and having made the initial contact in good time, I doubt I would have been prompted to act differently after reading the instructions.
     So here is the good old American system, a major corporation that can afford to employ a sizeable legal department to draft legal language for its protection, does not accord the same courtesy to its small business customers—quite the opposite. They win – you lose; it’s that simple.
     I happen to live in a UPS town, something I mentioned to the polite FedEx customer service agent who took my ranting very calmly (I can only conclude they get superior training in shafting customers).
     But now I will have to read the disclaimer first before I ship next time.
     Oh, and yes, I closed my account with FedEx, which surely will have a huge impact on them.
     What really rankles me most is that this is the company that bought out my former airline, Flying Tigers, only to use the traffic right and premier slots Tigers had all over Asia, dumping the B747 freighters and most of the cargo business they carried. I know, it was all a long time ago. A word of advice when you ship—remember this story.
     Absolutely, positively!
Ted

 

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NATO Logistics In Afghanistan

NATO convoy keeps rolling via Pakistan to landlocked Afghanistan.

     NATO security forces fighting in Afghanistan have signed agreements with Afghan importers for transportation of supplies through Pakistan through 2014, “under the cover of commercial cargo,” Pakistan Today reports.
     In turn, Afghan importers have signed separate agreements with Pakistani logistic firms for the supply of thousands of containers as commercial cargo that “would in fact go to the multinational military alliance in Afghanistan,” PT said.
     The move comes after Pakistan Customs blocked the clearance of NATO non-commercial cargo, including essential items like food, cables, infra and other equipment used for setting up communications.
     Ongoing Pak-U.S. diplomatic tussles have proven to be a blessing in disguise for the Afghan importers who, the sources said, are pocketing handsome amounts out of supply orders from the NATO.
     “They are also happily keeping huge security deposits amounting to five to six lakh rupees with the shipping lines,” sources told Pakistan Today.


A Young Man Is Gone


        Now a young man’s gone
        But his legend lingers on
        For so much had he to give.

      I was thinking of these lyrics from a Beach Boys song as we learned today of Udo Preissner. A 37-year-old man who was new to air cargo, serving as marketing manager at Frankfurt Hahn, he died of unknown causes during Christmastide, December 24.
      We often note the passing scene reporting these things, but losing Udo is made all the more terrible knowing that his potential and promise as part of the future generation has been cut off, and now will never be realized.
      We recall speaking to Udo at Air Cargo Americas in November.
      He was bright, literate and full of vitality and hope, with a notebook full of press clippings and a world to conquer.
      Udo, who joined “The Cargo Hahn” in 2007, was no stranger to the airport, after having worked there from 2002 to 2004—his first job out of college—with the sales and marketing department, where he “actively participated in shaping the development of the gateway.”
      In 2005, he went to Vienna as Fraport’s manager of controlling and finance for Fraport Ground Services Austria.
      He told me he liked being back at Hahn, and in the sales and marketing business for “its constantly changing environment; and because people in the aviation business are good to work with.
      “You don’t know what’s going to happen tomorrow.
      “It was the right decision, I’d do it exactly the same way again,” Preissner said.
      Here, recalling Udo, is our video conversation with him at Air Cargo Americas 2009.
      Our deepest condolences go out to his colleagues and family.
Geoffrey

 

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