| Volcano Grounds Air Cargo
           
            |  Backpackers in Bristol take delay in stride spending 
                a Spring 2010 weekend al-fresco awaiting reopening of London airports.
 |       Virgin Atlantic Cargo in 
          an email to its customers Saturday April 17 speaks volumes for an industry 
          thrown into unexpected chaos as that Iceland volcano continues to change 
          everything for the airline business.“We have cancelled all flights in 
          and out of the UK and are no longer able to accept cargo at any of our 
          facilities throughout the United States,” advises VS Cargo.
 But Panalpina, a leading air freight forwarder 
          raised its air cargo rates noting on its website:
 “All flights to and from Europe 
          are affected on all routes and many are already cancelled.
 “Specifically on the trade Far East 
          Westbound, the volcanic shutdown further deteriorates the current tight 
          capacity and leads to additional bottlenecks.
 “For example, some carriers in China 
          have already stopped accepting cargo due to unavailable warehouse space 
          at the airports, and grounded most flights.
 
  “As an unfortunate consequence, 
          backlog continues to build up at many origins. “As soon as flight operations are 
          back to normal, additional capacity at higher cost will be required 
          to clear backlog.      “Consequently 
          airlines are implementing a rate increase with immediate effect and 
          until further notice.
 “Although Panalpina is working on 
          optimizing procurement in the customers' interest, the present situation 
          leaves no alternative but to pass on this rate increase as of today.”
 Once upon a time a city dweller said:
 “I don’t trust air I cannot 
          see.”
 Down on the ground this may be remembered 
          as the weekend that we learned just how much Mother Nature still calls 
          the shots, and also of “The Volcanic Ash Advisory Center (VAAC) 
          in London” as one of nine go-to offices at various locations around 
          the globe charged with informing the world which volcano poses a threat 
          to the air every airplane engine must breathe.
 But to look at the VAAC site online and 
          attempt to read the updates probably requires a meteorological degree 
          (http://www.metoffice.gov.uk/aviation/vaac/vaacuk.html).
 In any case as this is written midday 
          Saturday in New York City, the latest bulletin from Volcano Ash London 
          declares:
 “The high atmospheric pressure over 
          the Atlantic is dictating that the wind strengths and the cloud will 
          stay in northern Europe.
 “However, should the pressure change, 
          the cloud could move more toward the Mediterranean.”
 If that sounds a bit like “we are 
          not sure what is going to happen,” you get no argument from us.
 On a typical day U.S. Flags operate almost 
          three hundred fifty flights to and from Europe.
 This weekend that number is about 75 per 
          day as impact of that Iceland Volcano continues to be felt although 
          according to latest reports eruptions seem to be waning.
 Neel Shah, Cargo chief at Delta takes 
          that carrier’s position as number one across the Atlantic very 
          seriously as he looks at flights today and tomorrow.
 “The problem is getting more severe 
          as the cloud impacts more of Europe. “Currently we have 95 cancels 
          for today and 86 for tomorrow,” Mr. Shah tells Air Cargo News 
          FlyingTypers on Saturday.
 Likewise the air above Europe is still 
          an uncertainty for market leader Lufthansa Cargo in Germany.
 Reached in Cologne spokesman Nils Haupt 
          reported “no change” in earlier reports that the ash cloud 
          continues to blanket Northern Europe.
 “Our next crises meeting is tomorrow 
          (Sunday) morning, meantime we are still grounded.
 “Our overriding mission is to keep 
          our service and business partners in the loop with information updates 
          as soon as we have them at www.lufthansa-cargo.com.”
 Meantime as indication of the worldwide 
          impact of the Iceland volcano, Forbes Business reports thousands of 
          air passengers were stranded in Asia for a second day Saturday as flights 
          were grounded including at least 45 flights between Europe and Asia 
          were cancelled Saturday.
 David Epstein, corporate affairs manager 
          for Qantas told reporters that the carrier thinks it will take a week 
          to sort things out.
 Qantas also said its five daily flights 
          Australia to Europe via Asian cities took off, then stopped at the intermediate 
          Asian destinations.
 “Safety before schedule,” 
          Epstein told reporters in Melbourne.
 U.S. airlines said most flights to or 
          from Europe were canceled on Saturday.
 American Airlines canceled 56 flights the same as Friday although AA 
          did serve Spain and Italy on Saturday.
 In terms of financial impact on airlines, 
          IATA says carriers are losing about $200 million a day.
 Reuters reported that shares in “Lufthansa, 
          British Airways, Air Berlin, Air France-KLM, Iberia, Ryanair and SAS 
          fell between 2 and 4 percent Friday.
 “Fraport AG, says its initial estimate 
          for the cost of the closure to be between 2.5 million and 3 million 
          Euros per day,” Reuters said.
 
  As for air cargo, impacted first are flights 
          of perishables including fruits and vegetables, flowers and mail although 
          most experts say near term at least there should be no significant shortages. Meantime UPS closed its Euro hub in Cologne 
          on Friday limiting its ability to move cargo between the United States 
          and Europe and between Europe and Asia saying it would reopen but leaving 
          exactly when— up in the air.
 Jackie Blair a UPS communications manager 
          said:
 “UPS will continue to pick up and 
          deliver packages within Europe while moving some of its cargo within 
          Europe by ground, Blair said.
 “Customers are being advised to 
          track their packages at www.ups.com to determine the length of delays.”
 Geoffrey
 |