Vol. 9 No. 99                                            WE COVER THE WORLD                                         Wednesday August 25, 2010

Lufthansa Too Cool For School

When you are delivering more than 40 Next Gen reefers like Lufthansa Cargo did yesterday in Frankfurt as Opticooler came in with the cold (and heat), you are also working on a new chapter in the history of air cargo. Pictured with Lufthansa Cargo Board Member Product and Sales Dr. Andreas Otto (left) are Dr. Stefanie Dommermuth and Werner Dommermuth of Dokasch GmbH, manufacturers of the new innovative cooling container.

     They call it “advantage through technology“ at car maker Audi.
     Lufthansa Cargo’s jewel is the Opticooler, a loading device tailored for the pharmaceutical and high tech industry. The box, built by the German cargo carrier in close collaboration with numerous clients and producer Dokasch GmbH, is able to maintain a permanent temperature of between +2 and +30 degrees Celsius.     What’s new and different to its forerunner Unicooler is the compressor technology. Instead of running on dry ice like its predecessor does, all the Opticooler needs is electricity to charge and re-charge the accumulators embedded in the device’s floor. The charging process takes between five and eight hours. Once fully charged, the batteries run 100 hours.
     Lufthansa Cargo’s Senior Product Manager, Temperature Control Competence Center, Hans-Peter Justus, considers this a big advantage since “now we are not dependent on dry ice any longer.”
     Unlike dry ice, compressors can be permanently controlled, which assures high transport reliability. And there are more advantages the Opticooler offers in comparison to the Unicooler:
     “It’s perfect for specific products like insulin, for example, that cannot come in contact with carbon-dioxide,” explains Justus.
     Lufthansa Cargo is thus convinced that their new device will generate additional business, since it enhances the flow of temperature-sensitive products.
    The new box has been tested for months with obviously encouraging results so far.
    “We deploy the new product both on freighter and passenger flights with roughly 100 Lufthansa Cargo stations being involved up to this point,” states Michael Goentgens, spokesperson for Lufthansa Cargo. He speaks of steadily growing demand by shippers and forwarders. Meanwhile, all the major pharmaceutical producers are utilizing the cool box.
     On average, customers rent the product for as long as 96 hours, Goentgens cites. That’s about all the time needed for a door-door transport from the producer’s facility somewhere in Europe to the consignee in China, India, and Brazil. Some shippers however, opted for using the cool box permanently because of constant demand, Goentgens says.

"The Opticooler costs like a Mercedes and performs much in the same way, above and beyond any other cooler containers currently in the market."


Michael Breul
Competence Center
Temperature Control
Lufthansa Cargo

"Product development continues no matter the financial environment although major focus is of course on service. Most important you listen to your customers and people. Staying close to the ground is invaluable and from that attitude came Opticooler."

Martin V. Schlingensiepen Vice President
Product Management Lufthansa Cargo

     To coordinate constant availability and the seamless flow of the coolers, LH Cargo has implemented new software and set up a management team, with responsibility held by Hans-Peter Justus.
    The German carrier has secured exclusive rights so other airlines are excluded from leasing or buying the Opticooler. Managing Director, Peter Kaminski, of producer Dokasch, confirming this speaks of a “general agreement” signed by his enterprise and the cargo crane.
    According to Dokasch’s Kaminski, the agreement allows LH Cargo to equip group members like Swiss WorldCargo, Brussels Airlines Cargo or British bmi cargo with the box if wanted. “It’s up to them to decide this issue,” Kaminski states. According to Dokasch, the box can be filled with nearly five tons.
Heiner Siegmund


    Civil Aviation Administration of China has just released the data on civil aviation transportation in July, reporting a continual growth of both passenger and air cargo transportation for the month.
    In July, Chinese airlines served 25.47 million passengers, 21 percent higher than the year before, while international routes performed fairly robust, reaching a growth rate of 43.9 percent year-on-year to 1.73 million, the second highest growth in 2010 following the 53.9 percent in June.
    Mail and cargo transportation in the month was 0.43 million tons, increasing 23.6 year on year. However, growth rate on domestic routes was comparatively low, only 13.7 percent, and also the lowest point in the first seven months of 2010. While volumes on international routes continued to remarkably expand 46.5 percent higher than the year before, it was still also the lowest point in the year, for the first time less than 50 percent.
    Would July become a turning point for China civil aviation industry? Mr. Li Lei, industry analyst of China Securities Co., shared his view with Air Cargo News Flying Typers:
    “Slowdown of year-on-year growth in July mainly results from two reasons: rebounding of mail and cargo transportation started from the third quarter of 2009, thus the increasing base number in July 2009 lowers today’s growth rate; secondly, decreasing demand of restocking and importing in U.S. and Europe in the second half of 2010 would also affect international cargo transportation.
    “We expect this trend would continue in the following months of 2010, and the whole year growth rate of international mail and cargo volume would be around 40 percent, given the 74.1 percent year-on-year growth for the first seven months.
    “In fact, growth on month-on-month basis did not show any sign of slowdown; as we can see, mail and cargo volume in July on both domestic and international routes are slightly higher than that in June.
    “We expect a rarely good time for civil aviation industry in 2010 and even in 2011, and the main reason behind this is the comparatively higher growth of demand.”


Count Down To AMS TIACA

     We are wondering about the TIACA claim that its 2010 Air Cargo Forum in Amsterdam November 2-4 is “the event you can’t afford to miss.”
     Some people who are attending have told us that the expense has left them feeling that the show may be the event they can’t afford – period!
     But expense aside, TIACA AMS November is certainly the biggest air cargo show on the continent and in the world, for that matter, until Munich Transport Logistic gathers next May 2011.
     Spearheading a revived TIACA and out there, giving of himself while working as hard as inhumanly possible for Cargolux, is the all-cargo carrier’s CEO and current TIACA President, Uli Ogiermann.
     Uli has breathed some life into TIACA and led the charge toward making ACF 2010 a success, with a spirited approach that promises to expand the TIACA experience with some new and innovative ideas.
     Here is our exclusive interview and video with Uli.
     The message here? Mark your calendars and save your dimes for some happy times with air cargo colleagues in Amsterdam.

ACNFT:  As President of TIACA, what can you report of the upcoming AMS Forum?
UO:  The ACF in AMS this year promises to be an outstanding event. AMS is in itself a reason to go there - and it is also one of the important centers of logistics and airfreight worldwide. The floor space is "sold out" and we’ve had to add more space to accommodate additional requests.
      The conference program will be of great quality and will address the needs and interests of shippers, forwarders and airlines. The focus will be on having a very open event covering the entire supply chain and its current challenges. I am sure that the industry will make use of such a "cross-border" event, especially in these times, the industry will have to come up with new ideas and solutions! Because of TIACA’s cross-sectoral membership, the ACF offers the perfect platform for companies, from shipper to consignee, to network, address industry issues and share knowledge.
      However, in the past, we have not been too successful in attracting the customer. I see the involvement of the customer in TIACA and the ACF as key to our continuing development. I’m pleased to announce that the European Shippers Council (ESC) and the Dutch Shippers Council (EVO) have accepted TIACA’s invitation to actively participate in ACF 2010. They will address the role of the shipper in today’s airfreight market in two dedicated shipper’ track sessions on November 4th at ACF 2010. In view of the many challenges in today’s market, the discussions will ask whether shippers are willing and able to become more involved and, if so, what difference this might make.
      Similarly important are TIACA initiatives to get a greater participation from forwarders in both the ACF and TIACA. Getting the involvement of the shippers already offers a compelling reason for forwarders to get involved and participate. The active participation from shippers and forwarders both in the exhibition and our discussions will make ACF 2010 a truly interesting and important platform for the industry and an event no one will want to miss!
ACNFT:  What other initiatives is TIACA bringing in 2010?
UO:  We now have clear policies on customs reform, the environment and security. Our industry positions are available in a practical 20 page pamphlet and in downloadable format in the TIACA website. This now gives our members an important tool to use in their own discussions with regulators.
     Our industry action plan is especially focused on delivering greater value to our members in regulatory issues, sharing knowledge, and education. We are making our voice heard on behalf of our members throughout the industry with trade organizations and regulators. However, it’s fair to also recognize that all of the things we are focused on are initiatives that are long term.

     Ulrich Ogiermann, who has been CEO at Cargolux for the past seven years and now also serves as Chairman of The International Air Cargo Association (TIACA), came out of the passenger business.
     But unlike some others, Mr. Ogiermann switched over to air cargo first at Lufthansa, where he found an industry fairly well populated with smart, well-educated people. Uli has been moving up the industry corporate ladder ever since. Blackberry in hand, this executive seems a point man at freight life. How the hard driving Ogiermann got involved and, in this tough climate, decided to throw himself into lifting TIACA (with all that entails), is another story. It’s safe to say that what goes around, comes around: In another era Cargolux, under Robert Arendal, was the carrier in air cargo that got behind a fledgling TIACA, and the organization headed to Luxembourg for the first Air Cargo Forum of the modern era in 1994. After Luxembourg, TIACA would move on to Dubai and fill its coffers, becoming a rich and powerful organization.      The rest, as they say, is history. But at inception, it was Luxembourg that made the difference between life and death at TIACA. So now, as the air cargo universe in 2010 seemingly makes a combeback in this tough, unrelenting business morass, up pops Ulrich Ogiermann and Lux-Deluxe, once again just when TIACA and all of us can use a boost. We think TIACA has doubled down its luck. Here Uli outlines what lies ahead.

ACNFT:  Can you tell me what is top priority at TIACA right now?
UO:  Our prime focus is in the area of Industry Affairs because we want to become a stronger voice for the industry. I also want to see TIACA working more closely with other trade associations and developing closer dialogue with shippers and forwarders about their future air cargo transportation needs. We also want to ensure our Air Cargo Forum in Amsterdam is one of the best ever and we have decided to make several changes to the format based on feedback from previous events. Finally, I want to extend our reach and membership in more geographic markets.
ACNFT:  What change has occurred at TIACA?
UO:  Since taking over as Chairman in April 2009, my focus has been to work with the TIACA team and the Board to implement a series of organizational and structural changes designed to increase our focus in key areas where we can most benefit our members. We have elected a new Board that includes senior executives from across the industry and we have refreshed our committees.
      Notably, we have created three new committees to strengthen TIACA’s corporate governance and the Board’s financial expertise to effectively oversee TIACA’s financial affairs and investments, to attract Board members that are decision-makers, shippers, forwarders and a representative from the financial industry and, finally, to oversee staff compensation. Three committees have also been created to address TIACA’s core areas of value to members – Industry Affairs, Education and Training, and the Air Cargo Forum & Exposition.      We have also reviewed our Industry Affairs policies and have agreed to focus on driving awareness and improvement in a number of important areas such as Customs and Performance Standards, Environment and Security. TIACA will continue its long-standing advocacy for the liberalization of traffic rights as opportunity allows, but we will devote most of our resources to the three core areas I’ve mentioned. The new committee structure and clearly defined goals will make for a more dynamic organization focused on deliverables. Our new results-oriented mandate gives us a good compass to gauge what we do and why, especially in these challenging times.
ACNFT:  What contribution has TIACA made to air cargo that is a point of pride, and one you consider to be longest lasting?
UO:  The challenge for just about every association in every industry is to ‘ring fence’ their contribution. In my opinion, TIACA has a unique position in representing all parts of the air cargo supply chain and we have to continually look to use that knowledge and expertise at a government and regulatory level to ensure new legislation does not negatively impact the air cargo industry. I can see plenty of evidence of TIACA doing that behind the scenes.
      In recent years, we have established much stronger and more regular dialogue with bodies such as the World Customs Organization, the European Parliament, the US DOT, the International Civil Aviation Organization (ICAO), the United Nations Conference on Trade & Development (UNCTAD) and the World Bank. Our Board and Members are all strong, experienced air cargo professionals.
     I think we know what is best for our industry but we are also wise enough to know that change takes time, especially through the regulatory consultation process. But we are increasingly ‘at the table’ and making our point of view heard. In March 2009, my predecessor Jack Boisen testified before the House of Representatives’ Homeland Security Committee to provide TIACA’s perspective in air cargo security issues. Another good example is the close working relationship TIACA has established with the Transportation Security Administration (TSA) over its ultimate program for 100 percent piece level screening of cargo carried on passenger aircraft. The TSA has consulted with TIACA, its most senior representatives have spoken at our events, and it has produced papers and guidance for our members.
ACNFT:  What about TIACA is misunderstood and what are you doing about it?
UO:  We recognize that some people associate TIACA mainly with our Air Cargo Forum & Exposition, which has been one of the biggest and most successful events in the air cargo industry for many decades now in terms of bringing companies together from across the globe to talk business and to learn more about issues affecting the industry.
      We are proud of the ACF but it is only one element of what the Association does. As I have already stated, we are placing more emphasis than ever on Industry Affairs and Education & Training. Our prime goal is to add value for our members but we believe our actions ultimately can help the wider industry, particularly when we can play a part in influencing regulators to take our views on board.
ACNFT:  What would you like to see changed in air cargo as a top priority, and can TIACA help accelerate that?
UO:  Well, I would love to change the cyclical nature of world trade and get us off the rollercoaster ride we seem to have to negotiate every few years! More feasibly, I think it is about ensuring that when we face change imposed on us by regulatory forces, that any new legislation has already taken into account the needs of our industry and does not just leave us to pick up the pieces, incurring more cost and delays along the way. ACNFT:  Why did you accept the TIACA post and once onboard, what surprised you?
UO:  TIACA has great potential and I want to see it realized. I believe the importance of the air cargo industry to world trade and economic development is often understated and I want that to be part of changing that. We need to ensure that politicians understand the important role our industry plays and that they take this onboard before they support changes that may harm our ability to perform services that help to generate employment, promote economic wellbeing and attract inward investment.
      I think my biggest surprise as I have become more involved with the Association is the volume of activity it carries out to inform and influence policymakers. It is easy to be on the outside and to criticize an apparent lack of progress but I see a lot of highly committed people trying to move the Association forward for the benefit of its members.
Geoffrey Arend/Flossie


Contact! Talk To Geoffrey

RE:  IATA Rope A Dopes CNS Global
Good morning Geoffrey,
     I read with special interest your article about CNS.
     As one who was involved years ago with CNS (in the creation and growing years) I can't but smile at some of the comments.
     I smile because we still do not understand or don't want to understand that the same attitude towards cargo remains in the IATA world.
     In a nutshell, in some quarters cargo represents "peanuts" in the total pie. But I firmly believe mostly that there is still residual ignorance about air cargo.
     Ignorance as we all know translates into fear, fear of the unknown and thus fear of failure etc.. etc.
     Big organizations become prisoners of their own bureaucracy and it is very difficult to escape that vicious cycle.
     Cargo while not needing to be a separate organization within IATA, certainly should be an independent unit free to determine its own fate and that means undoubtedly better ability to serve the industry that it is supposed to serve and that would include CNS whether just in USA or has been rightfully suggested—globally.

Best personal regards,
Isaac Nijankin


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