Rare to see Iran Air B747SP, which first flew in Pan American World Airways livery across the Pacific JFK/TYO, captured here in Singapore.

     Flight IR723 from Hamburg to Tehran last Sunday seems to be the first in Europe hit by a boycott of a major energy provider. Airport sources say multinational BP refused filling up the tanks of Iran Air’s Boeing B747SP with kerosene.
     To avoid getting stranded in Germany, the aircraft took off to Vienna Schwechat airport where the tanks were refilled, enabling the craft to fly the remaining five hours back to the Iranian capital.
     Similarly, two days later an Airbus A300-600 was boycotted by BP at Hamburg Airport.
     Again, the passenger plane stopped over in Vienna to get the necessary fuel on its way back to Tehran.
     Boycotts of Iranian carriers by multinational energy suppliers, as now witnessed in Hamburg, seem to happen elsewhere and could become habitual.
     As Middle East papers report, BP and Shell have begun to stop providing fuel to Iranian airlines at airports in the UAE, mainly Dubai and Abu Dhabi.
     However, it is unclear at this point if this ban includes all carriers landing there, namely Iran Air, Mahan Air, Caspian Airlines, Taban Air, Fars Air Qeshm, Iran Aseman Airlines, Aria Air and Kish Air, or if only flag carrier Iran Air is blacklisted by the energy giants.
     When asked, UAE airport officials commented they have not inititated any boycott or reduction of supply.
     So said the German government, which informed the media that refusing delivery of kerosene to Iran Air is the sole decision of a private enterprise.
     Analysts value the partial boycott by some multinational oil companies as a first reaction to the U.N. council’s recent sanctions over Iran’s nuclear program, which is suspected to be aimed at developing atomic weapons.
     The ban, initiated by Washington with support of most European governments and fully supported by China and Russia, blacklists dozens of Iranian military, industrial, logistics and transport firms.
     In a comment, Iran’s ruler, Mahmoud Ahmadinejad spoke of a “valueless” U.N. resolution that should be thrown “in the garbage can like a used handkerchief.”
Heiner Siegmund/Flossie

Maldutis Report—Dr. J Sums It Up

Up To The Minute Overview
     The USA economic recovery is under way, but there is the growing risk of a double dip and a return to a recession in early 2011. Unemployment rates rose to 19.1 percent in May.
     In the meantime, the European Union and the U.S. are running the risk of experiencing a financial meltdown.
     There is a growing risk not only for Greece, Portugal, Spain, and Italy but now Hungary as well.
     The National debt of Greece is at 113 percent of GDP, while the U.S. will be at about 102 percent by 2015.
     The deep water oil spill in Gulf of Mexico could, of course, have a prolonged negative impact on oil futures.
     Second and third quarter strong earnings produced 78.5 percent of gains in airline stocks since November 2009.
     Airline mergers have not worked well in the past.
Meanwhile, Out On The Oil Patch
     May 28, 2010 $78.13.
     Commodity Future Trading Commission (CFTC) has opened up 90 days for public comment on a proposal to limit energy futures contracts. Excessive speculation would be taken out of the market.
     CFTC must set a level that does not allow excessively high speculative positions that permit 98 million barrels of crude oil.
     Why can’t BP and the Administration solve the oil problem?
     The risk of military conflict in the Middle East is growing. Israeli conflict with Hezbollah and or Iran over nuclear proliferation could produce a surge in oil prices to $300/barrel.

North American Carriers Liability

Liquidity-At Bankruptcy and Today

Emirates Tops Paperless Cargo

     “We are excited about it because e-freight is the future of our industry, and the road ahead is what it is all about around here.
     “The benefit of efreight are enormous, and we encourage our forwarding partners to adopt it,” Ram Menen, Emirates’ Divisional Senior Vice President Cargo of Emirates Sky Cargo said as e-freight – paperless cargo consignments – reaching the one million kilos a month in June.
     The paperless initiative at the carrier also passed the 16 million kilo mark in total e-freight shipments during the last week of June.
     Emirates got on board e-freight just 19 months ago and now with 12% of its shipments efreight compliant claims itself “the world’s leading carrier of e-freight.”
     Key e-freight stations for Emirates SkyCargo include Singapore, Zaragoza, Mauritius, London Heathrow, Hong Kong, Sydney, New York (JFK), Munich and the carrier’s hub – Dubai.
     Emirates can also label itself as leader in promoting efreight out to the rest of the shipping industry.
     Earlier this year Emirates SkyCargo launched an extensive marketing campaign to promote the benefits of e-freight throughout the industry.
     The campaign, which comprised online and print advertisements, direct mailers and a step-by-step instruction manual to e-freight, ran in more than 100 countries.
     “We are ready and willing to go all the way,” Ram said.
     “Were it not for various Customs authorities still requiring a physical document, all of Emirates SkyCargo’s transactions could be paperless, thanks to its fully integrated air cargo management solution SkyChain.”
     “Forwarders who send traffic using e-freight can enjoy the benefits of a faster service through reduced cycle times; greater reliability and accuracy with its one-time electronic data entry at point of origin; better visibility as electronic documentation allows for online track and trace functionality; and Customs benefits as the number of fines are reduced and deposits are no longer required. On top of these benefits, there is the added financial stimulus for Dubai-based customers whereby Customs does not retain the forwarders’ deposits,” Emirates said.

Opinion

     Air freight growth will continue its upward trajectory for the remainder of 2010, with space becoming tighter and airlines massaging their cargo rates upwards.
     The following year is far more uncertain, however, for the air freight industry. I do not envision any sustained growth for air freight until at least 2012.
      The impressive statistical growth for the first six months, 30 and 35 percent internationally, and even an increase in domestic cargo, was 'catch-up' after a very weak 2009, when air freight volume fell off a cliff.      How much of this double digit increase can be credited to restocking of inventory and how much of it must be credited to genuine demand by the American consumer?
      Evidence seems to be pointing to the American consumer snapping shut her pocketbook. While a full-blown double dip recession later this year is an outside possibility, there is little question that the U.S. and world economies—even China—are slowing down. Air freight volume inevitably will follow this macro-economic trend.
     CII reached its highest point in volume and profitability in the first six months of 2010 since we opened for business seventeen years ago. We were up 40 percent despite a tough economic climate and we expect to equal this increase during the next six months. Our expanding operations for the tuna industry in American Samoa have been a major contributor to CII's profitable growth.
     But summing up the January-June period, we know that in this very competitive climate it would not have been possible without the loyalty and dedication of CII's employees. Our men and women not only generated new business, but maintained our current client base with the highest standards of service, an equally important task.
Julian
Julian Keeling is Chief Executive Officer of Consolidators International, Inc. (CII) in Los Angeles.

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