exico City Exclusive—Judging by the massive cheek-to-jowl participation at Air Cargo Europe last week in Munich, with industry stakeholders out in record numbers to plant the flag, those already in the mood might might also have headed on over to “Expo Carga,” which started yesterday in Mexico City’s World Trade Center.
This event is now in its sixth year, but in terms of attention received, Expo Carga gets no respect—especially compared to many of the other events air cargo likes to attend.


     What might get your attention is that right now, wages are about 20 percent lower in Mexico than in China, according to Merrill Lynch research.
     Mexico currently enjoys record high financial reserves, low inflation, low interest rates, and manageable debt.
     Mexico also has at least 44 international trade agreements, more than any country in the world.
     Mexicans have also created a powerful competitive advantage, exporting more manufactured products than the rest of Latin America combined.
     Antonio Garza, former U.S. Ambassador to Mexico, told reports that “we are witnessing a historic convergence of forces creating an Aztec Tiger.
     “Mexico’s economic situation is now the envy of the world,” he added.
     The Aztec Tiger analogy was recently used by the Financial Times to compare Mexico’s rapid rise and manufacturing competitiveness to China. Economist and Pulitzer Prize-winner Thomas L. Friedman (who authored the book The World Is Flat, which convinced us that as a small publication, FlyingTypers could rise to the top of air cargo publications . . . exactly what happened in 2013) also noted Mexico’s rise.
     Friedman recently wrote:
     “Which country will become the more dominant economic power in the 21st century?
     “I now have the answer: Mexico!”
     Snapshots at Expo Carga include participation of a large number of exhibitors from all around the world.
     The event showcases 300 booths, including airlines cargo, agencies and shipping lines, carriers, railways, customs brokers, freight agents, logistics operators, airports, ports, cargo terminals, and warehouses, plus an ample amount of manufacturers.

     Expo Carga features 15 various conferences in logistics & supply chain management, 45 workshops on foreign trade, and 5 forums specializing in perishables, dangerous goods, Maquila, export manufacturing and more..
     It makes perfect sense to us that one would bring some transportation clarity and education to the second largest economy in Latin America; it affords a unique opportunity to slap on a headset for translation and actually learn something at an industry event.
     Right now while most are looking in other directions, Mexico offers great opportunities.
     Take as example what has been termed as Mexico’s “Digital Divide.”
     There are fewer than 41 million Internet users in Mexico, a country of more than 112 million people.
     That’s a connectivity rate of just 36 percent in Latin America’s second-largest economy.
     Barely 17 percent have Internet access at home, according to the latest figures of the Americas Barometer, a survey by Vanderbilt University’s Latin American Public Opinion.
     At the same time, U.S.-Mexican trade has risen as U.S. manufacturers see costs to produce goods in China going through the roof, versus Mexico, where wages are about 20% lower.
     Trade between Mexico and the USA topped $500 billion in 2012.
     Mexico's economy is forecast to grow by 3.5 percent in 2013, according to Mexico's government.


     Border crossings and cross-border trucking bottlenecks between Tijuana and the U.S. caused Mexican President Enrique Peña Nieto to push improving the flow of goods from Mexico to the USA to the top of his agenda when President Obama visited Mexico City in early May.
     The big challenge here is that industry stakeholders must deal with too much paper work, not enough staff, and another usual suspect: the bureaucratic shuffle.
     But some good ideas are surfacing that offer hope in improving the wait time at the border each day.      According to one report, more than ten million flat screen televisions and a healthy number of the more than two and a half million motor vehicles manufactured in Mexico in 2012 are moving to market across the border.
     Better usage of benchmark shipping procedures, including shipper screening programs and some other initiatives, are expected following the meeting of the two presidents.


     Attending any of the sessions at Expo Carga is easy and free with a Forum Pass available at the event registration desk.
     We are heading to “The Revival of the Railway in North America,” a 45-minute lecture with Dr. David Eaton, Vice President Sales & Marketing, Kansas City Southern de Mexico, on Wednesday June 12 at 16:00 hours.
     David has led the KC-based outfit’s effort to develop cross-border rail service since assuming his post in 2009.

     FlyingTypers spoke with Aeromexico CEO Mauricio Nieto who offered his assessment of this week in Mexico City.
     “As the home carrier of Expo Carga we will be present with an interesting booth to enchant our existing and future customers. “We are also participating in various conferences and activities.
     "Additionally, as SkyTeam Cargo, along with our Alliance Partners we will hold a cocktail reception for our top customers.
     “This event has grown in size with more than 350 exhibitors and attendance from all over the world.
     “Mexico has continued and will continue to be an interesting place to invest because of its privileged geographical location and its well prepared, cost effective work force.

     “At this time, three new automotive plants are under construction in the center and north of our country with investment from various parts of the world,” Mauricio Nieto said.
     “This situation affects all aspects of logistics as our air cargo operation serves an important role in the supply chain.


     “It’s incredible,” CEO Nieto confides, “that among the most common misunderstandings about Mexico is that some people still think that the typical Mexican eats spicy chilies, wears a sombrero and takes siestas.
     “In reality, Mexicans are well prepared, hard working people, that are for the most part focused on the well being of their family.
     “So in the interest of better understanding all around as well as better business, welcome to Expo Carga, not just to the Spanish speaking countries but to people from all over the world.
     “This grand event looks to prosper with greater attendance year after year.
     “Mexico is a country with a bright future and it’s important that we are kept on the radar of the international community. “Everything points to Expo Carga as the right event and place to help you develop your business in the region.
     “Please visit our booth at Expo Carga as we plan to have some surprises for you.
     “On behalf of all of us at Aeromexico Cargo I would like to welcome everyone to Mexico,” Mauricio Nieto concluded.

     Discussing what the future holds for business in Mexico, particularly in the development of the Mexican supply chain, is what Jorge Nacif Iñigo knows best.
     Mr. Nacif is President of the International Trade Commission of the Mexican Chapter of the International Chamber of Commerce (ICC).
     “Mexico has a strong position in the automobile, aviation, tourism, and natural resources industries.
     “Mexico also has a booming automobile market with Volkswagon, Nissan, Renault, Toyota, and Audi all opening new plants in recent years to take advantage of the country’s excellent trade links, preferential tariffs, and cheap labor.
     “The Baluarte Bridge was opened in January 2012 as part of the Durango–Mazatlán highway, and is the highest cable-stayed bridge in the world, and the second-highest bridge overall.
     “Construction of the bridge began in 2008 and it was inaugurated in January 2012.
     “The bridge forms part of a new highway linking the Atlantic and Pacific coasts of northern Mexico, which greatly reduces the traveling time between Durango and Mazatlán,” Mr Iñigo said.


     So many sessions, so little time. Another great and out of the ordinary session covering Dangerous Goods at Expo Cargo included Paola Morales Ruiz, (right) Coordinator of Exports in Mexico for Switzerland-based Givaudan.
     “As the world's largest buyer of raw materials in the flavor and fragrance industry, we have an ethical and commercial responsibility in the supply chains in which we operate.
     “Using over 14,000 different ingredients in our flavor and fragrance products from more than 50 countries, it is critical that we have a deep understanding of our raw materials supply chains,” Ms. Ruiz said.
     Also discussing (DG) dangerous goods, including myths and realities in the DG transport business, is Humberto López Bello, (left) Manager of Air Distribution, Kuehne + Nagel.
     Kuehne + Nagel Mexico was founded in 1967 and today has 1,000 employees and 20 offices located throughout the country.
     “Kuehne + Nagel Mexico has extensive experience moving everything from industrial products to automotive, pharmaceutical, and high technology and telecommunications equipment,” López Bello said.
Geoffrey/Flossie Arend

Left to Right— Mattijs ten Brink, SVP Sales & Distribution Air France-KLM-Martinair Cargo; Erik Varwijk, Executive Vice President Air France-KLM-Martinair Cargo; Alain Malka, Executive Vice President Air France Cargo and Chantal de Grandcourt, SVP Marketing Revenue Management & Network Air France-KLM-Martinair Cargo.

ast week at the big Air Cargo Europe industry gathering, this triumvirate partnership, which has fielded an impressive global transportation cargo network, brought a fresh and reenergized team. We saw a handsome, earnest group of people that included some powerful women in the mix of top, out-front executives at this cargo enterprise.
Now Erik Varwijk is EVP Air France-KLM Martinair Cargo, whilst Alain Malka commands Air France Cargo as EVP.
     Chantal de Grandcourt serves as SVP Marketing Revenue Management & Marketing & Network, while Mattijs ten Brink is SVP Sales & Distribution.
     Rounding out team AF/KL/MP is Rob Hogue, SVP Finance & Control, and Sylvie Tardivon, VP Information Management Office.
     Air France, KLM, & Martinair Cargo had a lot to say last Thursday afternoon, but the clear message here is that this company is not just ready for primetime—they will not be denied.
     This gathering swept away clouds that have been a constant in Munich, which recently has been drenched by record rains, and with the event bright sunshine and deep blue skies were finally welcomed.


     The buzzwords are “volatile and uncertain” when describing air cargo demand during the first half of 2013.      This is added to continued fluctuating global cycles and changes in production patterns that have impacted air cargo during the past decade.
     SARS, the credit crises, and lately the debt crises have all happened in the past ten years, while air cargo has soldiered on.
     “At the same time we are seeing more local for local production, a modal shift to sea freight, as well as higher costs (including fuel, security CO2 etc.,) driving low to moderate growth in Europe,” Erik Varwijk declared.
     “On the plus side there is definitely stronger consumer demand in emerging markets, and e-commerce driving express & time bound products,“ he said.
     “But right now there is just too much capacity all around, driven most notably by Middle East, Asian and also Turkish carriers and also renewed business focus by the integrators who have benefited from growth in e-commerce and express," Erik added.


     While it might be a bit off the shoulder to say, simply, “It’s the system, stupid,” AF-KL-MP brings 250 destinations in 116 countries, with AF’s CDG & KL-MP’s SPL continuing as two of the top three European cargo gateways.
     Last year cargo delivered 3.06 billion euro revenues, or 11 percent of AF-KL Group revenues.
     In Europe, today “The Group” holds a 30 percent market share.


     With a cumulative 250 years experience and a set of partners that include Alitalia, Delta (JV), Kenya Airways, Skyteam Cargo & Etihad, the cargo offering has been extended to include the most powerful alliances in the world.
     “But on the ground where it matters most, there are more than 5,000 people globally that unquestionably keep us close to our customers," says Erik.


     You look at this three-airline organization as the presentation continues and wonder, is that all there is?
     So far it’s been about markets, economies, and the competitor, plus the predictable if not earnest need to address all of the above every business day.
     But while we get ready to hear about products, something else occurs.
     It is apparent that these people from France and Holland and other climes are also learning something from each other.
     Not an astounding revelation, but to express the point in human terms, it acts to bind everything together into one sweet, sublime moment.
     “We need to be more agile,” says Erik Varwijk.
     “Agile like Martinair; proactive in moving quickly to meet market demand, being able to efficiently change aircraft type as demand rises; to react to charter needs and overall continually streamline our thinking, and for example, set up short term networks,” he added.
     We hear those words and just love it.
     Here are mighty Air France and KLM finally acknowledging little Martinair Cargo, the legendary airline that could.
     We knew Martin Schroeder during the days we used to hang around Schiphol, in the Jacques Ancher era, when Pieter Bouw ran KLM and people like Stan Wraight and Jan Meurer were in the building every day. Paintings and sculptures, the work of local artists, were hung in the cargo terminal just to celebrate being alive and in the air cargo business.
     But as big and innovative as KLM Cargo was, over on the other side of the field was little Martinair Cargo; smart, efficient, quick to market—a constant surprise.
     Hearing “Martinair Agility” brought back memories of those halcyon days.
     “While you are reading a book, it is also reading you,” the Danish author and poet Hans Christian Andersen advised, and we say Amen to that while in Munich.


     “In 2012, extensive commercial development took place, bringing solutions, easier access, and value to our offering,” said Alain Malka.
     “We implemented our Key Account organization that greatly enhances our abilities to stay close and exceed the service demand expectations of our customers.
     “It’s all about delivering value that includes further developing skills within our sales and customer service teams, communication innovations, and overall quality standards in everything we do.
     “In terms of products, Pharma Control 15-25 is an example of a new solution for temperature control that is the best in the business.
     “We have rolled out a new CRM tool, CIM Sales, whilst developing a set of e-services including an iPhone app and e-claim tool available on our new CPS website.
     “So now easy access means that it is possible to book a Martinair flight with only AF and KL AWBs. (in the same manner as booking on AF & KL)
     “Currently we are at work on an all new booking and revenue management system branded Cargobus.
     “In total we are investing more than 100 million Euros, renewing our IT systems thanks to innovative partnerships with Accenture and salesforce.com,” Alain Malka said.


    “No two customers are alike,” was the message. The Air France-KLM-Martinair Cargo leaders repeatedly made the case for continued evolution, as a team that understands and looks for handling solutions from bulk cargo to high tech to valuables and perishables.
     Nice . . .
Geoffrey/Sabiha

     Flying High . . . On the Ground!
     A new Emirates themed attraction is set to go live in London soon, and the world’s longest A380 route—Dubai to Los Angeles—is set for December 2nd, 2013, as the A380 “will replace the Boeing 777-300 ER service across the route,” said Orhan Abbas, Emirates Commercial Senior Vice-President of the Americas.
     The indoor, aviation-themed attraction opening in London next month will take visitors inside air travel.
     “The purpose of this center is to provide a fun, yet educational, overview of just what it takes to successfully get a 560-ton aircraft off the ground and 40,000 feet into the sky,” said Tim Clark, President Emirates Airline.
      “Our aim is to explain the intricate science of modern aviation, in a hands-on, entertaining, and instructive environment,” he added.
Flossie

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