A new head of cargo, new airplanes, and an increasing sense that the future looks bright at American Airlines, as the legendary U.S. flag carrier begins receiving some brand new Boeing 777-300ERs later this year, part of a landmark 557-aircraft order the company placed last year.
     The 300ER has the space and layout to carry pallets and LD-3 containers and a range of nearly 8,000 nautical miles—enough chops to fly from Los Angeles to New York and back again, twice.
     Add efficiency to range and the 300ER gives American an important tool for its international operations.
While a typical 777-200 has 32 LD3 positions, the new 777-300ER will have 38 percent more capacity, with 44 LD3 positions.
     Interestingly, the 787-900 Dreamliner is expected to have 36 LD3 positions when delivered.
     Kenji Hashimoto, newly named President of American Airlines Cargo, is animated:
     “There are several important aspects to our fleet renewal effort that will give American a competitive edge in international logistics in years to come.
     “The new fleet boasts an array of wide-body aircraft capable of serving long-haul markets that are critical to American's future success.
     “We take delivery of our first Boeing 777-300ER in December.
     “The cargo-friendly aircraft will serve the Sao Paulo, Brazil, market followed by London Heathrow from both Dallas/Fort Worth and New York JFK.
     “We are understandably excited about the 777-300ER, which will have 38 percent more capacity, with 44 LD3 positions available—more cargo capacity than any other aircraft in the fleet today.
     “In addition to the 10 777-300ERs to be delivered in 2012 and 2013, we will also be taking delivery on an initial 42 Boeing 787-9 Dreamliner aircraft in late 2014.
     “We’ll have options for 58 additional 787 aircraft as well.
     “Another win is that American's new fleet will be significantly more fuel efficient.
     “The innovative engineering of these aircraft combined with lighter materials decrease weight and drag—consequently, with less fuel burn.
     “And best of all, our fleet modernization plan will not only transform our fleet but will also allow us to serve our customers with expanded network opportunities over the next five years.
     “We are very excited about that.”
Geoffrey/Flossie

ATC's Simon Keeps It Simple

     If you ask Morand Simon, ATC Aviation’s point man in France, about market conditions as 2012 moves along, the youthful country manager (who admits to practicing the art of Judo when not at the airport) admits candidly:
     “The economic downturn can be felt in France—the expected end of the year boom did not happen.
     “The big challenge is rates as belly operators are all in competition pushing the rates down.
     “It’s an old story as too much capacity is out there chasing too little cargo.
     “Also in 2012, as in 2011, carriers from the Middle East are now offering options for shippers via their hubs to all destinations and it becomes more and more difficult for the competition to follow the trend.
     But perhaps the art of judo, meaning “gentle way”, which espouses the notion of maximum efficiency paired with minimum effort to establish mutual welfare and benefit, is what helps Mr. Simon and ATC look forward with positivity.
     “ATC fortunately has, from the beginning, specialized offering services into the Africa and Indian Ocean area.
     “Our client list is a who’s who with companies such as Air Madagascar, Air Méditerranée, Air Seychelles, Gabon Airlines, Stabo Air, Syrian Air, Yangtze River Express Airlines and AgroAr in our service spectrum where we offer a full range of cargo products for agent customers.
     “Look, we know that there are plenty of options for air cargo operators out there.
     “No one has a lock on this business or can afford to take anything for granted.
     “At ATC France we always try to offer something different from the others—to go the extra mile in our service effort and to always be at hand for our clients.
     “Thanks to our airline partners, even though business is challenged we have managed to make the difference and that has meant we continue to grow our business.
     “As mentioned, when it comes to competencies, you simply cannot fake it or phone it in.
     “The high level of knowledge our staff has, which is largely comprised of specialists from the airline industry, adds an edge that allows ATC to offer a full range of services to our customers while also delivering absolute top line expertise in working with full freighter operators.
     “Our in-house air cargo specialists offer the experience and expertise to be very proactive in optimizing every aspect of the air cargo supply chain for maximum benefits all around.”
     Morand Simon has been with ATC since 1988.
     He admits that he is an air cargo guy for life, saying:
     “The airline industry is like a fine wine; once you have the taste you cannot ignore it.
     “ATC is one of the leading Cargo GSA organizations and growing very quickly, so that makes this job even more exciting.
     “I take great pleasure in creating solutions for any challenge.
     “This job is never boring.”
     Outside of air cargo, Morand Simon lists family, the aforementioned judo and mountain walking as his priorities to bring fulfillment and well-rounded joy to his life.
     Morand also admits, having studied sales and economics, that if he were not in air cargo, “I would be serving in the Army.”
     Judging by the solid success he is building for ATC France, change is definitely not in the wind.
     Morand Simon is quick to credit Daniel Graf, who mentored him into the business:
     “Thanks to Daniel, I learned the GSA business.
     “I also owe much to Pierre Brunet, for his vision of the vital role the GSA plays in the air industry.”
     In 2012 Morand points to continued growth tied to “the close collaboration with the French speaking areas in Africa and in the Indian Ocean.”
     This long time air cargo professional thinks, an area the industry can improve is “the airlines that carry the goods should stop settling for less and less revenue whilst other actors in the supply chain make good money.”
Geoffrey

Out To Sea

     Looking out to sea, up to the horizon, or over the rainbow is that much easier when listening to Prof. Dr. Burkhard Lemper; he’s not just one smart cookie, but also director at a think tank called The Institute of Shipping Economics and Logistics (ISL) in Bremen, Germany, where he is head of the Maritime Economics and Transport Department.

     In this capacity, he has managed or participated in a large number of projects in the area of maritime economics and sea transport for both private and public-sector clients.
     His research and advisory activities focus on maritime shipping and port markets, especially container shipping, as well as on the analysis of ports, hinterland transport, and other transport markets, on feasibility studies for transport and port projects and on the modeling of traffic flows.
     Here in an easy give and take with DB Research, Prof. Lemper offers his thoughts on what will happen in the global ocean shipping market.
     “I expect global freight transport to grow further this year and next, which also means increases in sea freight and cargo handling in ports.
     “In light of slightly weaker global economic activity, growth rates—as in 2011—will fail to match the record increases achieved in 2010.
     “However, robust global growth will probably help sea transport as a whole to grow by approximately 4 percent p.a.
     “Probable drivers are China’s and other emerging markets’ appetite for commodities on the one hand, and a further, albeit in my opinion probably slower integration of the world's economies, and thus the globalization of production processes on the other.
     “In the past, container shipping has been the segment with the strongest growth dynamics.
     “This will continue to be the case over the coming years.
     “We forecast growth to average approximately 7 percent p.a.
     “However, the bulk transport market also registered above-average growth in the last few years.
     “This segment looks set to grow by around 5 percent p.a., driven among other things by China’s ore and coal imports.
     “By contrast, we think tanker shipping—especially of crude oil—will see below-average growth.
     “Even though Chinese economic growth seems to be ‘flattening out’ somewhat at present, it will still provide the strongest momentum for world trade and maritime transport.
     “Moreover, South America and India will play an increasingly important part in future.
     “Global cargo handling will thus continue to expand.
     “At the same time, freight and charter rates in the sea transport sector have hovered at a very low level (in a long-term comparison) for some time now.
     “The weak rate level (on average) is mainly attributable to excess supply of tonnage.
     “Overall, transport costs are very low today in relation to the value of the goods shipped and an increase, for instance, in fuel costs via generally rising prices or additional carbon emission fees would probably have little effect on total volumes in world trade and intercontinental maritime shipping.
     “The situation would be more problematic if higher costs led to shifts in the competitive position vis-à-vis other means of transport, such as overland haulage.
     “This seems to be the case in northern and northwestern Europe, where so-called SECAs (Sulphur Emission Control Areas) have been introduced which are subject to special regulations governing permitted sulphur dioxide emissions.
     “The measures required, such as higher-quality fuels or filter systems, will make maritime shipping more expensive so that it is likely to lose market share.
     “The industry will hardly be able to offset these disadvantages as ferry and container-feeder services, which are particularly affected, have already been largely optimized.
     “There is a debate at present about providing public-sector financial aid for a trial run of equipping some ships with the relevant filter systems and possibly extending the transition periods.”
Geoffrey/Flossie

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DHL Moves Rhinos

     There was a lot of action this past Monday, June 16, 2012, at Manston Airport in Kent, England, as rhino crates were loaded onto a specially enlisted DHL Boeing 757 to be translocated to Tanzania.
     The Aspinall Foundation along with the Tusk Trust and the George Adamson Trust have combined forces to stage a rare translocation of three captive-born black rhinos to Mkomazi National Park in Tanzania in order to rejuvenate numbers of black rhino in the area.
     The three animals—Grumeti, Monduli, and Zawadi—were airlifted in a dedicated DHL Boeing 757 from Manston direct to Kilimanjaro Int. Airport in Tanzania.
     Damian Aspinall, Chairman of The Aspinall Foundation, donated the three black rhino from the Foundation’s breeding group at Port Lympne Wild Animal Park in Kent. The program to reintroduce endangered species to the wild to assist breeding is a major focus of The Aspinall Foundation. Prince William, Duke of Cambridge, Patron of Tusk Trust, and a dedicated campaigner against poaching, visited the rhinos at Port Lympne ahead of their translocation and released a speech via the BBC which highlighted his dedication to the fight against the illegal trade of ivory.
Geoffrey

Summer Solstice 2012

     Today, June 21, there are sixteen hours, 50 minutes, and 6 seconds of daytime.
     In more than 340 cities all over the world, the solstice is celebrated with Fête de la Musique.
     Getting outside on the longest day of the year is part of the music of life.
     Tonight, we are attending the opening of As You Like It in the open air Delacorte Theater in Manhattan’s Central Park.
     Shakespeare In The Park is a great New York City Summer tradition that for us recalls the summer of 2006, when we gathered our family together to see our son Geoffrey (currently making a film while on break from his TV series, ABC’s Body of Proof), perform with Meryl Streep, Kevin Kline, Austin Pendleton, and others in Bertold Brecht’s Mother Courage & Her Children.
     Sitting in the woods in the middle of a great city, we will watch and listen to the day move into night, and celebrate.
Geoffrey

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