Vol. 9 No. 36                                                             WE COVER THE WORLD                                                   Wednesday March 17, 2010

      You might think we have gone a bit soft in the head to devote real estate in this highly professional publication to such a decidedly unglamorous article of airline lifecycle! It’s kind of like the joke with the various body parts competing for primacy, and you’ll never guess who wins … right!
      Then think again - we mark the launch of the first commercial 747 flights - the evolution of the ULD (unit load device) era-changing forever the way in which airfreight and baggage was handled. The first Pan Am Boeing 747 was put into service on January 15, 1970, although it seems the first flights regularly carrying fare-paying passengers only started on January 21.
      Either way, we have had 40 years of ULDs as an essential part of commercial widebody air travel, truly the link in the air cargo supply chain that changed everything. We have come a long way in those four decades with ULDs becoming ever lighter and stronger, as well as becoming more versatile while specialized, indispensable for the proper handling of all types of cargo and baggage.
      Many people have taken it for granted due to the ubiquitous nature of the lowly ULD. Yet, no ULDs, and the passengers’ baggage ends up being left behind with predictable customer service failures or it is bulk loaded and unloaded, which negatively affects ground time and service. No ULD and that newly won hot account’s first must-ride shipment is backlogged. And so this relatively insignificant piece of equipment all of a sudden gets much attention, but no love.

   Above—lower deck ULDs.

      Just to make sure we are on the same page – at the risk of stating a known fact, legally, ULDs are ‘ship spares’ subject to the very same aeronautical regulations as the aircraft itself. This extends to airworthiness and certified manufacturers and repair facilities. Although clearly critical from an operational perspective, in the big scheme of things, ULDs don’t rate high in terms of executive attention and budget, unless – you got it - there is a service failure that stinks to heavens – think fish!
      Airlines and the industry insist that safety is the first order of business, yet from aircraft manufacturers to airlines, money has been spent on passenger convenience items such as video screens in seatbacks, but nothing has been invested to have automatic identification readers onboard to confirm units are loaded according to the load plan, whether top side or in the lower deck on wide body aircraft.
      Leaving the development and implementation of such solutions to the after-market arena saddles any potential innovator with the enormous burden of obtaining certification for non-interference with avionics and the nightmare of available frequencies.        Not an attractive proposition in the best of times and, needless to say, a very tall mountain to climb in a tough economic climate.
      Cross-discipline standardization is perhaps the biggest cause of unmet potential simplification and its economic benefits.
      Let’s review briefly how it all evolved. Before the advent of wide body aircraft, all-cargo airlines used ULDs - from the ubiquitous set of aluminum pallets and nets to the igloos. First the B707, then the DC8-55F with 13 pallet positions in 1964, followed by the legendary DC8-63F stretched freighter in 1968, became the backbone of the cargo business, the latter carrying 90,000lbs of freight loaded in 18 pallet positions.
      This facilitated a previously unprecedented degree of efficiency and economic viability in loading and unloading aircraft and ramp handling. The mainstay standard pallet has been the 88” X 125” type and cargo loaded using a template shaped as a cutout of the fuselage to ensure fit with the aircraft contour.
      There is a wealth of information used by airlines and ground handling companies alike which contains detailed specifications and is a must have item – the IATA ULD Technical Manual.
      This is the foundation of interoperability among airlines worldwide. The IATA operated Interline ULD Control User Group (IULDUG) with its roughly 60 member airlines and which – to quote IATA - “…was formed to facilitate the interline movements of ULDs, under standard procedures, and to track ULDs when they are outside the control of the ULD owner.”
 
Setting up for loading 113 polo ponies on the main deck en-route to Bandar Seri Begawan (Brunei), Malaysia and the Philippines. Photos courtesy of Ted Braun.
Configured for a triple and a quad Instone horse stall across in each stick (left; right). 
    

      The military version of the pallet and net combo ended up as the 88 “X 108” “MAC” pallet, designed to handle pallets with a secondary function of airdrop. As CRAF (civil reserve air fleet) participating airlines have experienced for years, loading this type of pallet on commercial aircraft requires time consuming resetting of the entire floor locking mechanisms – vertical, lateral and side locks – before and after a mission.
       As documented in Air University Review, July-August 1982, “A Uniform National Air Cargo System Do we need it?” by Paul D. Tuck which states “If unit-load devices were fully interchangeable between civil and military aircraft, the total number of ULDs required by the two airlift systems could be reduced”. And “…The DC-8 productivity in cargo carried is increased about 11 percent when civil, rather than military, pallets are used.”
      Igloos came in all varieties – with doors, curtains and “GOH” – garments on hangers, enabling transportation of time-sensitive fashion merchandise by air. Livestock became another commodity to be commercialized, transporting efficiently by air breeding stock to countries, which were beginning to build up their infrastructure in the 80’s, including Kuwait and Saudi Arabia, all under Irish agro-management. The supply came mostly from the U.S., Australia, Germany and the Netherlands.
      By the time Lufthansa, as launch customer for the B747-200F started flying them, and with both Seaboard World Airlines and Flying Tigers introducing them to service in 1974, yours truly witnessed the mind boggling 29 upper deck and 9 lower deck positions loaded with 200,000 plus pounds of freight for simultaneous nose and side door loading and unloading!
       My jaw dropped when I saw the first Seaboard LODEP in Frankfurt!
      The Seaboard version was named the “Containership” and pioneered the use of 20-foot equipment, which also enabled the famed “sea-air” cargo intermodal concept. Initially marine containers were used which carried a vey hefty tare weight and were loaded on 20 foot pallets. Air containers made of aluminum soon followed. This equipment could be taken off-airport to either the freight forwarders’ or the customer’s distribution center for loading and breakdown anchored on trucks with ISO corner fittings. 10-foot containers or “cans” followed.
       There are approximately 60 companies worldwide engaged in ULD manufacturing and repairs based on the IATA compatibility codes.
       From the utilitarian, ULDs have progressed to a plethora of special purpose devices – main and lower deck, forkliftable and non-forkliftable containers, animal units (cattle, horses, goats, and sheep), ULD for aircraft engine transport, automobile transport (single and twin car racks) and a variety of thermal containers.
       While looking at the utilization of ULDs in cargo, the passenger business has deployed containers throughout the world for as many years, using an ever increasing ‘making-your-head-spin’ variety of ULDs for baggage; here is a quick overview of some of the more frequently used lower deck containers:


Source: Wikipedia

       In the wake of the downing of Pan Am flight 103 over Lockerbie in 1988, initial government reactions prompted efforts to explore “bomb-proof” containers. Trials produced equipment alleged to withstand an explosion of the magnitude suffered by the Pan Am aircraft using various techniques, whether in material or construction. The ‘Q’ series represents certified hardened aircraft containers.
       Aluminum ended up sharing the space with composite materials, which made it more economical to repair damage but weigh more. Indeed the pursuit of lightweight materials continues to this day, well after Lexan, which is lightweight, clear and weather resistant. I am waiting to see something, which is forklift resistant…..
       The quest for innovation and for the “perfect” ULD marches on; last year Lufthansa Cargo together with Jettainer, its ULD pooling and management provider (partially owned by LH), tested about 1,000 composite containers made of materials that are 15% lighter than aluminum. Additionally, their repair is alleged to be less costly while also enhancing safety during handling. The main ingredient which delivers these advantages is Dyneema®, whose manufacturer, DSM, claims it’s the world’s strongest fiber which has a unique combination of strength and softness.
       As fuel and “green” are perennial economic drivers, at times in parallel, at other times interchangeably, this seems to be one of the more promising alternatives because the fiber has been in production for almost 20 years.
       Temperature controlled ULDs have revolutionized air cargo; from humble beginnings and primitive controls with minimal ranges in the aircraft, nowadays high yield pharmaceuticals and sensitive electronics travel first class, ensconced in plush, dedicated equipment with digital readings and in-flight transmission capability on demand. All kinds of perishables, from fresh cut flowers, to chilled seafood, bull semen, plasma – the list is endless, have evolved into a specialized niche of cargo products with more and more sophisticated supply chains and shorter door-to-door transportation time.
       Some of the key players in the supply end of temperature controlled ULDs include Envirotainer and Unitpool, two of the best known and established global players and newbies such as Skycooler (2006), the UK-based temperature controlled container leasing company. The latter’s management team includes Jorgen Veslov as CEO, a former Unitpool AG manager and Philip Hill as Chairman, formerly Unitpool’s managing director.
       Considering the bi-directional imbalance inherent in the airline business in both passenger and cargo loads, combined with the location of certified repair stations, securing the required stock levels throughout an airline’s network poses a significant logistical challenge. And ULDs go off-airport to forwarders, distribution warehouses, shippers and customers, all factors, which add to the magnitude of the availability and serviceability predicament.
       Anecdotal evidence has revealed over the years that containers were spotted as unconventional housing substitute in various developing countries throughout the globe. Not necessarily the intended use, to the chagrin of the airlines’, which regularly conduct sweeps to locate missing equipment.
       So there you have it – give the ULD some respect!
Ted Braun

Oliver Evans

Chief Cargo Officer

Swiss International Airlines

World Cargo Symposium 2010

Great Wall Goes China Eastern

     Great Wall Airlines (GWL), China’s first Sino-foreign joint-venture carrier, has recently changed its controlling shareholder.
     Beijing Aerospace Satellite Applications Corporation (BASAC) has completed the transfer of its 51% stake in GWL to China Eastern Air Holding Company, the parent of China Eastern Airlines.
     Both BASAC and China Eastern are central enterprises, directly under the regulation of State-owned Assets Supervision and Administration of China (SASAC). Transfer of GWL’s stake is part of SASAC’s on-going efforts to reshuffle its central enterprises.
     According to the roadmap released by SASAC, the number of central enterprises will be condensed to 80-100 by 2010. In the past several years the enterprises have been reduced from 196 to today’s 132.
     Another goal of this reshuffle is to make sure that the central enterprises should only focus on their core business, and all other businesses should be cast off.
     Acquisition of GWL’s stake makes China Eastern the only boss of all the three Shanghai-based all-cargo carriers: China Cargo Airlines, Shanghai Airlines Cargo and GWL.
     The three carriers are currently independent; however “there will be a streamlining of all 3 carriers,” Air Cargo News Flying Typers learned from China Cargo Airlines.
     However, as to GWL’s service in the market, GWL’s announced in a statement that “recent change in majority ownership will not affect the company’s operations.”
     “It is business as usual and our customers can expect the same reliable, high-quality service that Great Wall Airlines is well known for,” said GWL President, Mr. Kuah Boon Kiam.
     “We remain committed to helping to serve the growing trade ties between China and markets in Europe, the United States and Asia.”
     Launched in 2006, GWL is an all-cargo airline based at Shanghai Pudong International Airport, operating a fleet of three Boeing 747-400 freighters.
David

Air Cargo 2010
Forward Moves In Orlando

(Exclusive)—Monday marked the official start of AirCargo 2010, taking place in Orlando, Florida at the Omni Champions Gate Resort.
     Almost 800 attendees and 100 exhibitors and sponsors are in Orlando to take part in educational sessions covering topics such as how to improve innovation in their companies, how to manage compliance issues in domestic and global supply chains and what to expect for our industry with the screening deadlines approaching.
     Monday began with Terry Jones, (right) founder of Travelocity, as the keynote speaker.
     He led an engaging session on how to foster innovation in business to stay successful and increase potential for future growth.
     Following a short break, the group broke for annual membership meetings of the host organizations, the Air and Expedited Motor Carriers Association (AEMCA), the Airforwarders Association (AfA), and the Express Delivery & Logistics Association (XLA).
     The AfA meeting featured updates on the association and industry and the presentation of two awards.
Southwest Airlines won the first ever AfA Airline of the Year Award.
     A good week for SWA as the carrier managed to also win an award in Vancouver at the IATA WCS Conference last week.
     The honorariums are made even more significant as SWA doesn’t own a ULD nor does it interline.
     This year’s Jim Foster Award, given to an individual who has made an outstanding contribution to the industry, was presented to Ed Kelly and accepted in his memory by his wife, Ann.
     In addition to an impressive lineup of speakers, the showroom floor is bustling with activity as organizations from all parts of the air cargo industry share their latest products, services and program updates.
     “Everyone in our industry really looks forward to the AirCargo conference each year,” explained Brandon Fried, Executive Director of the Airforwarders Association. “This year especially, it is a turbulent time for our industry in regards to screening mandates and an ever changing political economy.
     “Coming together at this conference allows us to polish our competitive edge so that we may successfully move forward in 2010 and beyond.”
     Especially important, the conference offers access to leading officials from TSA. Tomorrow’s government session will feature presentations by Doug Brittin (left) and Kim Costner-Moore of TSA and ample time for questions and answers.
     Given the recently released Change 5 to the IACSSP and upcoming 75 percent screening requirement, AirCargo 2010 may be the best chance to have questions answered by our regulators and inspectors.
     Other key industry leaders presenting this week include Neil Lenok of the World Academy and Bob Reilly of the GovPro Alliance.
     The conference web site contains the most recent agenda and other important information on events: www.aircargoconference.com.

     They Got The Seafood Mama—As International Boston Seafood Show (IBSS) concludes its annual show at Boston Conference Center in Boston, Massachusetts (March 14-16) one of the best annual shows for business leads, business decisions and just plain fun hoisted more than 16,000 visitors and 800 exhibits.
     IBSS is five floors of decision-makers from all parts of the food chain.
     There were manufacturers and retailers and wholesalers and shipping experts, container manufacturers by the score everywhere at IBSS.
     But in addition to meeting up with guys in air cargo perishables from everywhere, Scotland to the Cone of Chile, IBSS exhibitors offer up samples of some of the best dining on the hoof imaginable.
     What a scene.
     Twenty-ounce draft in one hand, skewered shrimp in the other, Zantac within reach, then back to the airplane ready to take on the world.
www.bostonseafood.com

JFK Cargo Day March 25

     On March 25 an annual favorite is being held near Kennedy International Airport in New York as the JFK Air Cargo Expo takes place from 08:00 to 15:00 at Russo’s, 162-45 Cross Bay Blvd in Howard Beach, New York
     This venue, big and beautiful is located right smack dab in the neighborhood of the infamous John Gotti, the gangster who reportedly at one time thought of JFK Cargo as his own private pasture.
But in 2010 all of that has changed.
     Next Thursday air cargo will carry a message of uplift and hope from this iconic venue close to JFK, Queens New York.
     This is a one-day show at the airport that moves about 25% of the U.S. air cargo business.
     Is this a local event?
     Yes.
     But when you think about it, all air cargo shows and meetings that keep this industry really moving, by elevating change and networking, are local.
     Do you really believe in 2010, that a bunch of jet-lagged, half-asleep, over-hung people at some desert hotel or tropical resort location are doing much more than walking around in a semi-stupor, while fattening up their expense accounts?
     But enough of that.
     We like this JFK effort that has been put up, good times and bad, for several years now by the JFK Air Cargo Association.
     This year ACA President President Willie Mercado (Aer Lingus) will host a show as important to air cargo business in New York, as any other event on the calendar anywhere else in the world this year.
     Our wish is that more airports like ORD, MIA, FRA, PVG and others, would get off their duff and boost their local clubs into holding their own air cargo one-day expo.
     JFK 2010 is inexpensive ($60 registration includes lunch), is held in a decent place, and it ends in one day, before you start seeing the same people twice.
     “Where have we been?
     “Where are we going?”
     “What about that 100% TSA Screening Mandate?” are questions asked and hopefully answered at the 2010 Air Cargo Expo.
     Networking sessions and speeches through the day will examine the challenges, and try to offer solutions as regional USA cargo experts see them.
     Worth your time and not to be missed.
Geoffrey
www.jfkaircargo.org.

Up The Irish 2010

     Celebrate St. Patrick’s Day with these words as you lift your glass to friends and family:
               May the road rise up to meet you
               And may the wind always be at your back
               May the sun shine warm upon your face
               And the raindrops fall soft upon your fields
               And until we meet again
               May God hold you in the small of his hand

     
A GREAT DAY FOR THE IRISH
     There may be always an Ireland, and beyond that lovely prospect, always 100 parades around the world to celebrate March 17th.
     But from 11:00 a.m. until about 3:00 p.m. on an island called Manhattan, where a green stripe runs down the middle of Fifth Avenue from 44th to 86th Street, The St. Patrick’s Day Parade is one of New York City’s greatest traditions.
     On St. Patrick’s Day a kind of wonderful delirium takes over in Gotham.
     Everyone is Irish!
     The annual procession marches up Fifth Avenue, past St. Patrick’s Cathedral at 50th Street, all the way up past the Metropolitan Museum of Art at 83rd Street.
     The St. Patrick’s Day parade in NYC began even before there was a United States of America in 1766, when Irishmen from Ireland’s Revolutionary War brought the tradition here.
     Military units continued to march each year until after the War of 1812, when local Irish fraternal and beneficial societies began sponsoring the event.
     In those days, the parade was quite small, marching from local Irish meeting halls to Old St. Patrick’s Cathedral in Lower Manhattan on Mott & Prince Streets.
     By 1851, the groups had banded together, nominating a Grand Marshall and increasing the size of the parade.
     This was when the Irish 69th Regiment (now the 165th Infantry) became the lead marchers, and the Ancient Order of Hibernians became the official sponsor.
     We love St. Patrick’s Day.
     It’s when the “Irishrey” of New York come out in full celebration. Look into the faces of the uniformed services, especially the NYC Firefighters and you will get it right away.
     We also like that St. Patrick’s Day Parade remains true to its roots by not allowing floats, automobiles and other commercial overkill.
     Marching, great bands, bagpipes fill the air as more than 150,000 people from all over the country and the world celebrates here in New York.
     This year 2010 for the first time in memory we will be on the road Wednesday March 17.
     But in between trips we slipped over to Tommy Maloney’s in Long Island City, New York (www.tommymaloneys.com) that has the best real Irish corned beef and also boiling bacon (our most favorite) and puddings. We gathered the clan this past Sunday and ate the traditional dinner loving every bit until our hands got tired.
     Then we pulled out the family album—laughed until we choked a couple of times—and ate some more!
HAPPY SAINT PATRICKS DAY 2010!
Geoffrey

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