Vol. 11 No. 26                            #INTHEAIREVERYWHERE                              Monday March 18, 2013


air cargo news March 18, 2013

(Dateline Doha)—The IATA WCS 2013 show is in town. Inside the big hotel with the sloping sides and midway down a long, thin, window-walled hallway, Uli Ogiermann sits in a comfortable room set up for interviews.
     It has only been five months since Uli took up the reigns as Chief Cargo Officer at Qatar Airways, but he is no stranger to handling hot potatoes and describes his current position as “the opportunity of a lifetime.”
     Outside in a dozen meeting rooms the global business of air cargo is deconstructed and discussed, as Doha is magnet once again for another important international conference.
     Just down the road, a grand new terminal complex will open to support Qatar Cargo as the airport is rebuilt to serve this booming and growing Middle East Metropolis early next month.
     Significantly, the cargo build debuts before the rest of the new, billion-dollar international airport is revealed, which will happen in stages throughout the remainder of 2013.
     The next big story in air cargo is actually happening right now, with the emergence of Qatar Airways on the world scene; the change will reverberate around the world.


     From the get-go, the placement of Mr. Ogiermann has brought to Doha a proven air cargo executive, with leadership and performance credentials second to none.
     As CEO of Cargolux and Chairman of The International Air Cargo Association, Uli has weathered every storm and has stood up and done the right thing for the air cargo industry.
     As good and decent an individual as you might ever know, Uli appears energized, healthy, and absolutely thrilled to be on top of things.


     As World Cargo Symposium began in Doha, Akbar Al Baker, CEO of Qatar Airways as usual made headlines all over the world painting the canvas in a word picture of bold and clear colors that will be recalled as “Five By Five”:
     “Our vision is clear,” Mr. Al Baker said.
     “We know where we are heading—ultimately, to be among the top five air cargo operators in the world within five years.
     “And when I say number five, that is just what the planning people suggest.
     “I would prefer to shorten the number to second or third place.”
     A quick look at IATA tonnage figures underscore the dramatic shift underway as FedEx tops the list as usual, but number two is expected to be Emirates, which bumps Korean from a perch it has held for some years.
     If Mr. Al Baker’s prediction is correct, by 2018 two of the top five air cargo carriers in the world could be operating from hubs less than 30 minutes apart by air.
     “Qatar Airways Cargo is increasing by 20 percent a year, so with the opening of our new cargo airport in April we expect a huge increase,” Mr. Al Baker said.


     “This year of 2013 is a real game changer with a new cargo facility, new people in a recently formed team, which also takes a gigantic step in terms of capacity, putting this airline into a different league.”
     “In terms of capacity Qatar Airways Cargo will grow by close to 40% in 2013.
     “We are adding 3 A330Fs (replacing 3 A300Fs) that can lift 70 tons versus 50 on A300.
     “Qatar Cargo also takes delivery of a B777F this summer, and adds an additional 3 A330Fs by end of this year.
     “So in total 7 new freighters are being delivered in 2013 with net effect of four, as A300s are phased out.
     “Looking even further ahead in the following years, this steep jump in capacity might not be repeated, but we will continue to add at least 20 % every year.”
     In January Qatar Airways introduced its latest gateway in the Republic of Iraq, adding scheduled flights to the central city of Najaf, which followed the move into that country in mid 2012 with flights to both the capital of Baghdad, and Erbil.
     On the back of passenger demand to Iraq, Qatar Airways said that it viewed expansion into Iraq as “being vital, fuelled by the country’s reconstruction drive.”
     Qatar Airways currently operates 122 aircraft to 125 cities across Europe, Middle East, Africa, Asia Pacific, and The Americas. Qatar Airways 2013 new service was launched to Phnom Penh, Cambodia on February 20 and the next big launch is to Chicago on April 10.


     “But speaking about WCS here in Doha this week,” Uli said, “It is a great honor to host that event.”
     “WCS’s location also acknowledges the activities that have been ongoing in Qatar air cargo development, as this gateway emerges among the most important current and future global destinations.
     “The government here has endorsed and supports aviation, and it shows.
     “The new international airport opening in Doha toward the end of 2013 at a cost of $15 billion will be world class and, in many ways, world beating.
     “Prior to that opening we have a $1 billion new cargo terminal debuting here on April 8 that will include 55,000 square meters.”


     As mentioned, Uli Ogermann has handled critical air cargo posts in a long and distinguished career of service to the industry.
     But he indicates the QR posting is different.
     “The thing that impresses me here in Doha and throughout Qatar is the openness of the people and especially the airline company.
     “Qatar Airways is like a mini United Nations, staffed with people from dozens of nationalities.
     “The result is an even richer overall culture to everyday work that makes things quite a bit more exciting, varied, and rewarding, and a constant learning and doing process.
     “There is a positive spirit about things here that is in marked contrast to working in other parts of the world.”
     “Folks in these parts see the opportunity to build something, to make a better life by creating something new and wonderful, and everybody is energized by the experience.”
     “It’s a huge challenge, but for myself and many others, it is also a once in a lifetime opportunity.
     “The drivers here are capital for investments, close accountability, a baseline demand toward excellence, and many other factors; they give Qatar a special edge.


     “We have indeed given the CEO a scenario: we want to be amongst the top five cargo operators worldwide within the next five years.
     “Of course, Mr. Al Baker noted in his opening speech at WCS that our goal lifted the bar, saying: ‘Of course the number 5 is what they said, but you know me, I want our cargo business worldwide to rank second or third in that time span.’
     “We will have to make that work,” Uli smiled.
     “Our service delivery and almost every aspect of our operation gets a huge improvement as our new, game-changing cargo facility goes live early next month.
     “Quality is created not in the air but down on the ground, and in that regard our Doha cargo facility will be staffed by the best people in the business, with all the bells and whistles required to deliver a world class product right now and in the years ahead.”
     In 2013 Qatar Airways celebrates 16 years since Akbar Al Baker came on board as CEO and changed the airline forever.
     If “Sweet Sixteen” is the charm, this is one airline that will not be denied a great future that aims for nothing less than the very top of the heap.
     There was a coming out party last week in Doha and everybody in the global village of air cargo management saw the city, the airline, and the air cargo future.
     With Uli at the controls there is only one way to describe the action in Doha:
     Qatar Cargo looks “Unbeatable.”
Geoffrey/Flossie



he inevitable show season that began last month in Johannesburg with Air Cargo Africa and continued with IATA World Cargo Symposium in Doha last week will move forward with Intermodal South America, the big South American opus in Sao Paulo, from April 2-4. It will be followed by the 23rd Cargo Network Services (CNS) Partnership Conference May 5-7 in Phoenix, Arizona, and the biggest show of the year (or any year) follows closely on the heels of that gathering: Transport Logistik & Air Cargo Europe June 4-7 in Munich. The year closes with Air Cargo Americas in Miami November 6-8. At the rate these shows are going, one could spend all of one’s time on airplanes for at least half a year.
     One could also show up at a hotel, booth, or meeting and probably see all the same people over and over again—enough to get to know what they like to drink.
     It gets to be a bit much, and we haven’t even mentioned the events that take place at the same time as some of the aforementioned—didn’t the U.S. Airforwarders gather at the same time last week as IATA Doha?
     We like to see hale and hearty attendance at all the events, so you will never read snarky observations here about who showed up at an event and who did not.
     Frankly, after six or eight events in a row, we get a bit tired of it ourselves.
     Here, we’d like to take another tact: in addition to the big shows, we have learned that there are scores of other industry events worth paying some attention, including the annual gatherings of outstanding (albeit less reported) companies that are successful, innovative, and, in many ways, the true backbone of the air cargo industry.
     Want a true barometer of how business is moving this year?
     Get off your duff and out of the passing lane and go local to an airport or company event and see for yourself.
     One such company that has grown by leaps and bounds during the past half dozen years is EMO Trans.
     This medium-sized logistics company charts its own course building new horizons and bucks the trend by continuing a global growth pattern unequaled by most others.
     EMO’s Annual Meeting begins this week in Lisbon, Portugal.
     Although the event is a closed-door affair, FlyingTypers was granted access to some thoughts from the fast and furious freight forwarder, as we spoke to Joachim Frigger, EMO Trans Chairman & CEO.
     For the record EMO began providing professional airfreight services in Germany in 1965.
     Since that time, EMO capabilities have expanded to include virtually every facet of worldwide shipping.
     But as Mr. Frigger notes right away:
     "One thing about EMO Trans has not changed: from top to bottom and everywhere in between, our company remains dedicated to an ongoing commitment to provide door-to-door solutions for each individual customer.
     “We have kept close to our customers in practice even as we have expanded into China, Latin America, India, and Southeast Asia.
     “During just the past few years we have extended our reach, establishing new offices in places like Australia where we are growing by leaps and bounds.”


EMO Trans Strasbourg team—left right: Jean-Marc Richter and Eric Lefebvre.

     “As offices in Australia are thriving, we are moving towards developing a new product to supply spare parts for mining equipment in remote areas of that country, in addition to our AOG services for airlines.
     “Australia was plagued with floods and fires early this year, but with little impact on our business.
     “In Brisbane, we will move to new larger offices, and in Melbourne we will occupy additional space in our existing office building.
     “On the request of one of our customers, we will open our next office in that region in Port Moresby, Papua, New Guinea.
     “EMO Trans Strasbourg has obtained its IATA license effective March 1.
     “EM Lines, our new NVO company in Hong Kong, has been accepted by the FMC.
     “The application was locked in on February 15.”


     “In the USA, there’s good news to report too. EMO Trans Chicago handled a 747 charter with food products to Melbourne, Australia. This is an ongoing program with midsize shipments to follow for a customer acquired by branch manager Michael Horn some time ago.
     “We have also just opened an office in Lansing, Michigan, an area with strong overseas business and a local need for international transportation expertise.
     “This new office falls under the leadership of EMO Trans Detroit’s Rob Harrington.”


     “In terms of 2013 business, both January and February were good months for the EMO Trans organization.
     “I began the year by traveling through Europe and Australia.
     “During that time, I observed that Europeans’ overall economic expectations for 2013 were quite optimistic, despite ongoing concerns about the Euro and countries like Greece and Spain.
     “We will continue to focus on Europe—still our single strongest market.
     “It is our belief that the new European/U.S. Trade Agreement expected to be implemented shortly will create additional business in this region.”


     “Job One will always be working hard to achieve customer satisfaction.
     “EMO Trans carries any type of cargo, but we are not just commodity driven; we focus more on global markets with our reliable network partners.”
     “But it is not all beer and skittles in 2013, as many in air cargo and other modes of transport have already discovered this year.
     “The major business challenges for us in air cargo are pricing and space(as always).
     “The air carriers sometimes still don’t understand the combined power of the medium-sized logistics companies, and we are either overlooked or somehow underserved.
     “We think that the contrary is true today for companies like EMO and others.
     “Our size allows us to provide real, personalized service to all our customers, as held up by our continued growth even in markets that, for others, are heading downward.
     “In terms of our global view on industry issues, security compliance and other governmental and industry challenges will need to be further addressed with an eye toward global solutions.
     “There is simply no going it alone when it comes to the interconnectivity of the global marketplace.
     “Our view is that true cooperation across the board will drive transportation services to real growth in the future.
     “Open dialogue with the goal of better understanding and appreciation of each case as unique, is a critical part of what has worked for EMO Trans,” Jo Frigger said.
Geoffrey/Flossie


 


uch admired today as a Middle East powerhouse air carrier to the world, Turkish Airlines Cargo dates back 77 years, when the Istanbul-based airline carried its first international cargo in 1936.
     As the legendary carrier approaches the ripe young age of 80 years in 2016, we spoke to Halit Anlatan, Turkish Cargo VP of Sales & Marketing, who leaves no doubt that not only is Africa on his screen, but also that the continent is viewed in crystal-clear high definition.
     “Turkish Airways Cargo devotes prime focus on the African market as we feature a combined network of 34 destinations where we operate dedicated scheduled flights, including Accra, Lagos, Nairobi, Khartoum Johannesburg, Algiers, Mitiga, Cairo, and Casablanca.
     “We operate two 35-ton A310Fs and five 65-ton A330-200F—new-generation cargo aircraft with an average fleet age of one to two years.
     “Turkish Cargo will continue to increase penetration into Africa this year with the goal of adding a total of 10 more new stations by 2014.
     “In Sub-Saharan Africa, we have plans to introduce trucking services in eastern and southern Africa.
     “Through a spirited, aggressive marketing and close relationship with our agents and forwarders, Africa is key to our growth as a cargo resource.
     “The ace in our plan is Istanbul.
     “Africa largest trade partner is Europe, with 70 percent of exports from Africa shipped to European destinations.
     “At the Istanbul hub, we are geographically advantaged to connect to over 34 regional cities in Europe within 2-3 hours airfreight, as well as an excellent trucking network across Europe and Balkan states.”


     We wonder what air cargo shippers and even partners might not know about Turkish Cargo, a division of Turkish Airlines, which utilizes the flight network and fleet of its parent company.
     “Today,” Anlatan declares, “as one of the fastest-growing air cargo companies in the cargo industry, Turkish Cargo offers a wide variety of useful and reliable value-added services to our customers.
     “For example, we provide technological, logistic solutions to our individual and corporate customers.
     “‘We will work with you’ are more than just words or slogan at our company.
     “We are moving forward with our determined efforts to become one of the main players in air cargo traffic between Africa and the world by always building upon our strategic location in Istanbul, situated in the center of the world’s commerce routes.
     “For Africa that makes us the natural friendly neighbor with the technical know-how and strategic location to unlock and build upon Africa’s great potential.”


     “We direct wholly and completely all of our effort and resources at two words: Total Satisfaction.
     “With our passenger aircraft, we transport cargo to more than 217 cities; 35 of them are domestic lines.
     “Turkish Cargo also arranges scheduled cargo flights with our expansive fleet of all-cargo aircraft.
     "In addition, our service offering includes truck services to more than 1,000 locations which we do not yet serve with direct flights.
     “Moreover, we have more than 67 S.P.A agreement and more than 145 interline connections all over the world in order to truly globalize African business.
     “In terms of ramping up our offering we have added our TK Plus product for diplomatic mail and guaranteed cargo space.
     “Turkish Cargo has also introduced C-SAFE containers, which are stronger, lighter, and temperature controlled. “


     “While the general tendency of growth seems to remain the same this year compared to last year, capacity at Turkish Cargo will grow by 18 percent in 2013.
     “By adding a fifth A330F to the fleet (expected by this September), our cargo fleet will consist of seven brand-new A330Fs.
     “It’s very exciting to have such cargo capacity for our business and also room to grow as we add aircraft, plus a new, purpose-built, 10.000 m2 cargo transfer facility at IST in 2013, and yet another 50.000 m2 at IST in 2014.
     “We have also assigned a special cargo manager and we will have some products which are redesigned, such as valuable, pharma and live animals in 2013.”


     “Major subjects for the air cargo industry that WCS places much attention upon, such as e-freight and cargo security, seem lost when cargo tonnages and international trade weaken.
     “In order to fix this situation, why not involve senior level trade authorities from the booming economies of Asia, such as China and India, to be involved in WCS?
     “I think this kind of renewal of approach could drive remarkable progress for the future of the air cargo industry.”
Geoffrey/Flossie


Get On Board Air Cargo News FlyingTypers
For A Free Subscription
Click Here To Subscribe


     Sitting in Lisbon this Sunday, March 17, we’re thinking about St. Patrick’s Day in New York.
     My home of New York City makes more of March 17 than any place else on earth, including Ireland.
     So while the corned beef and cabbage is nowhere on the LIS menu, kale soup with linguisa and cornbread are quick to make you forget your missed Irish meal.
     But looking for a connection to home is natural, so today we want to be authentic.
     Irish people don’t eat corned beef—they exported it in the 17th century when a salt tax favored them and the Cattle Acts of 1663 and 1667 prohibited Britain from exporting live cattle. Most Irish couldn’t even afford to eat it—it was too expensive. And besides the issue of expense, the Irish considered the cow to be a sacred animal, a symbol of wealth, useful for its milk and for working the fields, and only truly edible once it had outlived its other uses.
     So maybe a Cornish game hen, or broiled cod sounds like strange fare for St. Patrick’s Day, but here, where they are pulling pints at Hennessy’s, that is what is on the menu.
     And say the day correctly—there is no Patty.
     Patty is a girl’s name in Ireland and Paddy is the proper nickname for Patrick.
     Wherever you are, why be the Patty in the pub?
Geoffrey

 

If You Missed Any Of The Previous 3 Issues Of FlyingTypers
Click On Image Below To Access

FT031113

FT031413