Vol. 8 No. 98                                                                  WE COVER THE WORLD                                     Monday September 14, 2009

Standard Of The World

    Best air cargo public relations. Nils Haupt accepts FlyingTypers award recognizing Lufthansa Cargo as Best Air Cargo Public and Press Relations 2008-09.
   Pictured in Frankfurt, Monday with Mr. Haupt is FlyingTypers Publisher Geoffrey Arend.
  “No doubt that Lufthansa Cargo has set the bar in air cargo with is inventive and original public relations that are sent out to media and public alike in a constant and informative stream that is standard of the world,” Mr. Arend said.

Cargo Rates Raise Doubt

     After months of dwindling tonnage and dramatically declining rates, air cargo, that old leading indicator of better (or worse) financial times ahead seems to be on the upswing once again.
     New rates are in play that the carriers hope will stick.
     Lufthansa Cargo came first by informing their clients last month of an upcoming increase of rates averaging 25 percent.
     Some new information obtained by ACNFT indicates that now everyone seems to be following that trend.
     According to forwarders Air France-KLM Cargo plans to hike their tariffs between 20 and 30 percent depending on markets and routes.
     The SkyTeam Cargo partner Delta Cargo announced rate jumps of up to 30 percent.
     Such is also the case at Japan’s JAL Cargo.
     Additionally Cargolux of Luxembourg will demand an additional 20 to 25 percent while Nippon Cargo intends to raise their prices by at least 15 percent per kilogram on routes between Fareast and Europe.
     The new tariffs will become valid beginning of October.
     But as mentioned, whether or not the airlines will have sufficient power to fully implement their fares remains to be seen.
     Some serious doubts remain since no Middle East carrier seems to have followed suit.
     Also Lufthansa’s own subsidiaries Brussels Airlines and Austrian Airlines, although smaller players have remained silent so far.
     The tariff hike of these and presumably some more cargo carriers well demonstrates the full dilemma most of the capacity providers are confronted with.
     “Because of overcapacity, shipments from Paris to Hong Kong have been sent for five € cents per kilogram.
     “And that’s not the worst case because some airline have even flown for nil,” stated an agent close to the case.
     Now overcapacity is being reduced with more than 100 freighters parked at deserts or airports and tonnage slowly picking up again.
     The timing for the upcoming major rates hike therefore seems to be smart.
     But it remains to be a highly risky undertaking.
     No one can forget that big brother in the form of that wild bunch of prosecutors now lurking in almost all the trading nations is watching the industry extremely closely, looking for any signs that somebody colluded in raising rates. “We are only allowed to negotiate tariffs directly with our clients,” an airline executive told ACNFT.
Heiner Siegmund

Money For Nothing

     Air Cargo News FlyingTypers is tired of the ongoing price fixing charges that would have some believe that the world air cargo business is populated by a pack of price gouging and business fixing characters out of some pulp fiction novel.
      We do not believe, based on our 35 years of experience covering the air cargo beat that the people you have been reading about in this publication and elsewhere are little more than a bunch of back room, under the table deal makers.
     Reality, we think, is that some of these air cargo price fix investigations are little more than ever widening fishing expeditions that now include several nations’ prosecutors who are operating like a pack of jackals out to make their political future whilst fining air cargo companies, who for the most part have paid out huge amounts of money thinking perhaps that their financial response action is a cost of doing business.
     At the onset of all of this, U.S. DOJ targeted Australia’s Qantas.
     But OZ has no extradition treaty with the U.S. so Qantas threw loyal U.S. CSM Bruce McCaffrey to the DOJ to deflect heat from itself.
     Now Australian prosecutors smelling blood in the water are looking at carriers including their own flag as easy pickings for some price fixing fines.
     Air Cargo News FlyingTypers thinks that something should be done immediately by the air cargo industry speaking as one voice.
     Air cargo should take some of the money it seems willing to pay (paid) in fines to work in the interest of creating some new business principles language.
     World air cargo organizations in cooperation with some legal minds could endorse and back the principles that would spell out in simple terms the manner in which all future air cargo business is conducted.
     That EK Cargo wake up call saying, “we will not take this lying down,” against charges of price fixing in Australia should be echoed by others.
     Then air cargo might keep the change that most companies have struggled to earn for the past few quarters, instead of just continuing to fork over money for nothing.
Geoffrey

ATC GSA For ANA

ANA recently signed a GSA contract with ATC signed in Frankfurt. In the picture (L to R) is Ingo Zimmer, CEO of ATC, Hiro Murai, All Nippon Airways Co. Ltd., Andreas Moebius, ATC branch manager FRA and John O’Shea from ANA European headquarters in London.

     (Frankfurt)—ANA has upgraded its Japan-Germany services with B 777 dailies while increasing its cargo offering to 30 tons and more on each flight.
     ANA has operated in and out of Germany for the past 18 years and the carrier enjoys a broad cargo customer base in the biggest European market cargo market.
     But cargo manager Hiro Murai who leads the team for Central Europe noted that he does not want to shoulder the new lift challenge all alone, so ANA appointed ATC Aviation Services Ltd. its GSA for Germany.
     The ANA cargo office here will remain untouched and fully intact as part of a new working relationship.
     ANA in cooperation with the ATC team remains a contact point for all operational concerns, import queries, transit information as well as Space Control and Export Revenue Accounting.
     “Transit” is of course a key action advantage feature when shipping freight on ANA flights, the carrier serves 51 Japanese airports and 17 in the Asian region including Guam.
     ANA cargo flies 920 flights daily on 128 routes and is presently upgrading its cargo terminal at Naha Airport on Okinawa to a major hub.
Guenter Mosler

 

Our exclusive series “Women In Air Cargo” asks our readers to send some words and a picture about somebody that you know who is female and has made a difference in air cargo.
  This effort is not limited to just success or failure, it is meant to raise awareness about the legions of unique women who in most cases are unsung heroines in the air cargo industry.
  So write and we will share your story with our readers around the world.


Donna Mullins


Lisa Schoppa

     The tiny Himalayan state of Nepal has been in the news—almost always—for the wrong reasons.
     With an economy that was going nowhere and a certain amount of political uncertainty, the country saw tourists dwindling.
     Almost simultaneously, flights in and out of the country also decreased considerably.
     For the landlocked nation, the decreasing number of flights was like sounding the death knells because transportation in and out of Nepal is dependent solely on roads and aviation. However, the situation has improved dramatically over the last few days when India and Nepal agreed to significantly enhance the number of flights.
     The two neighboring countries recently signed two instruments including a Memorandum of Understanding (MOU) for a revised Air Services Agreement (ASA) and a technical accord, which is a part of the MoU.
     The agreement followed the norms laid down by the International Civil Aviation Organization.
     While Mr. M. Madhavan Nambiar, Secretary, Ministry of Civil Aviation led the Indian delegation, Mr. Nagendra Prasad Ghimire, Secretary, Ministry of Tourism and Civil Aviation of that country headed the Nepalese side.
     The newly agreed upon India-Nepal AASA allows both nations to offer 30,000 seats every week.
     The earlier figure was only 6,000 seats with 63 weekly services between the two countries: 43 operated by Indian carriers and 18 by Nepalese carriers (Druk Air operated three weekly services while Nepal Air flew 17 flights). Nepal’s airlines can now ferry passengers to Indian cities of New Delhi, Mumbai, Chennai, Kolkata, Hyderabad and Bangalore.      In addition, there is provision of operating direct cross-border flights from regional airports in Nepal that will include Pokhara, Bhairahawa, Biratnagar, Janakpur, Nepalgunj and Dhangadhi in Nepal and Varanasi, Patna, Gaya and Lucknow in India.
     Perhaps, what is more important in the agreement is the green signal for cargo flights to and from Nepal and India.      The designated airlines of each country have been entitled to operate any number of all-cargo services between each other’s territory with any type of aircraft with full third, fourth and fifth traffic rights. These all-cargo services could also be operated under cooperative marketing arrangements such as code sharing, blocked space, etc.
     Incidentally, India remains Nepal’s biggest trading partner.
     According to figures available, a little over 70 percent of the total exports from Nepal were to India while imports comprised 60 percent of the country’s total imports in 2006-07.
     The Nepalese cargo industry was, until a few years ago, in a disorganized state. Freight forwarders were organized under the banner of Freight Forwarders Association Nepal (FAN) in 1990. Another parallel organization was created in 1994 in the name of Cargo Agent Association Nepal (CAAN), which was a splinter group of FAN.
     Both organizations were reunited in 1998 at the behest of Nepal Multimodal Transit and Trade Facilitation Project and formed the Nepal Freight Forwarders Associations (NEFFA).
     The problems that the country faces was highlighted by Mr. Raj Kumar Pandey, the First Vice President of the Nepal Freight Forwarders Association (NEFFA) at the UNESCAP Regional Forum of Freight Forwarders, Multimodal Transport Operators and Logistics Service Providers meet in Bangkok in June this year. He pointed out that while the NEFFA has taken the initiative to develop cargo handling and document processing at Kathmandu Airport, the nation’s only international airport at its Cargo Complex, a lot remains to be done.
     The NEFFA initiative is still on for the modernization of the facility as well as participation in the terminal management.
     NEFFA has taken up the responsibilities of international cargo movement. With more than 80 freight forwarders in the business registered with NEFFA, the association members facilitate international trade by delivering goods at the destination in an efficient and fast manner.
     Orientation to multimodal transport, liability of the freight forwarders and transporters, handling of dangerous goods were some of the focus areas of training taken up in the past, particularly with the help of the Nepal Multimodal Transit and Trade Facilitation Project.
Tirthankar Ghosh

Air Cargo News FlyingTypers leads the way again as the world’s first air cargo publication to connect the industry to the broadly expanding and interactive base for social commentary—Twitter.
     Here are updates from Twitter so far this week. To be added to this 24/7/365 service at no-charge contact: acntwitter@aircargonews.com

September 13:   Did Somebody Blink? The September 11 cargo price fix court date with Australia versus Emirates Sky Cargo (EK denied charges) was postponed, with future date to be announced. Stay tuned . . .

September 13:   Biggest non-surprise at HK Cargo show last week is Boeing sending in Jim Edgar with another of those "sun will come out tomorrow" forecasts.

September 13:   Carping at Hong Kong show last week over 100% TSA air cargo screening mandate in USA next year misses point that 50% has worked just fine.

September 12:   Anchorage CargoPort open only since 2000 faces future as a ghost town as Delta drops NWA freighters to TYO just five days before Christmas.

September 12:   August Hong Kong (Hactl) air cargo slide -6.2% & minus 17.9% for first eight. No miracles expected as Christmas rush AWOL in '08 approaches.

September 12:   Deccan 360 with 3 A310Fs based at Nagpur connects 30 India cities in October. CEO GR Gopinath (right)says carrier "will change India delivery".

 

Why Are These Two Men Smiling?