When Neel Shah, Senior Vice President and Chief Cargo Officer, Delta Cargo, said he was out to bring a new deal to air shippers and build his business everywhere, he was not kidding.
     Under Shah, Delta Airlines Cargo high-value, time-sensitive and premium product shipments just got a whole lot easier to keep track of “in-house,” as customers can now use approved GPS tracking devices to pinpoint their consignments around the clock.
     The GPS offer applies to all mainline flights in Delta’s global network, and will be expanded to include Delta Connection carrier flights in the near future.
     “With the addition of support for GPS tracking, Delta continues to offer our customers key products and services that complement our world-class network,” Neel Shah declares.
     “With the option of greater visibility throughout the entire shipment lifecycle, we expect customer response to grow rapidly.”
     Industry watchers note that despite a tough business climate, these moves confirm the determination of the Atlanta-based carrier toward reaching Shah’s stated goal of building a billion dollar business.
     Worth noting is that although GPS will be a customer supplied device, Delta Cargo’s call centers are investing in tracking technology to monitor the status of GPS-equipped shipments and closely coordinate with customers.
     For more details about the new service and approved GPS devices, go to www.deltacargo.com.
Geoffrey Arend/Flossie

What Drives Asia Pharma?

     Asia’s growing middle class is creating fresh demand for the uplift of pharmaceuticals that require specialist handling and storage, according to industry leaders contacted by Air Cargo News FlyingTypers.
     Niklas Lönnkvist, Head of Healthcare Sales Asia Pacific & ME at Envirotainer, a cool chain container supply specialist, said growth in pharma traffic was already apparent on both intercontinental and intra-Asia lanes. “No nation can fulfill its health care obligations by themselves, so international trade in healthcare products is very important to governments,” he explained.
     Government investment in healthcare systems, Free Trade Agreements within Asia and with Western countries, investment in pharma sector production within Asia by multinationals, and a growing, more health-informed middle class were boosting demand for pharma air cargo and supply chain services.
     “Another trend is the growing global demand for biological health care products and the industry is investing in Asia to be closer to their consumers,” he said. “Singapore, Korea, Japan and soon also China will have a high degree of manufacturing for both domestic use as well as for export.”
     However, although freight forwarders, 3PLs and integrators were supporting clients by building facilities such as cool chain warehousing, for the trade to further develop in Asia more investment was required at airports and in supporting infrastructure.
     “The infrastructure in Asia to support the pharmaceutical industry has improved in the last 3-5 years,” he added. “In several countries, however, we believe more should be done to ensure that high-value and temperature sensitive products will stay potent throughout the entire supply chain.
     “I am convinced that airports offering good infrastructure and handling conditions for temperature sensitive cargo will see an increase of such cargo at their airports.”
     UPS opened a new 43,000 sq. ft. facility designed for healthcare operations in Singapore earlier this year to manage regional imports and exports as part of a global expansion of its capacity for this sector. The Singapore facility includes coal chain warehousing and storage capacity for cargoes that are temperature sensitive.
     As Asia’s healthcare systems improve, FedEx is also targeting the market. David L. Cunningham Jr., (left) FedEx Express President, Asia Pacific, said specialist, temperature-controlled air cargo services was prompted by consumers demand for better healthcare standards.. “Growth is being driven by Asia’s burgeoning middle class, which has more money to spend on health care, increasing investment in the hospital sector and greater penetration amongst rural populations,” he said.
     The Asia Pacific accounted for 23.3 percent (US$247 billion) of global healthcare revenue in 2009 and this total is expected to reach 27 percent (US$348 billion) by 2012, according to figures from FedEx, which now offers a range of freight products and storage options in Asia aimed at the sector.
     “Whilst the global pharmaceutical market is expected to grow around five percent in revenue in 2011, in emerging APAC markets the growth rate is forecast to be much faster at around 12 percent,” added Cunningham.
     “All of this demand requires reliable supply and that is where FedEx is supporting the industry. FedEx currently serves more than 11,000 customers in all segments of the health care industry worldwide. In addition to our core shipping services, we offer these customers cool chain service options across packaging, handling and storage.”
     Lönnkvist said healthcare companies needed global supply chain consistency to maintain the integrity of their products. “They simply can’t afford to have breaks in their supply,” he added. “Manufacturing in a factory could be designed around a single product during a specific time of year and failure to deliver could mean that other production lines are delayed.
     “We also see that healthcare companies standardize their packaging for, let’s say, a specific vaccine, and then apply the same packaging to multiple destinations.
     “Standardizing the packaging provides a good foundation for freight forwarders and airlines to handle the shipment in a consistent way all year around, thereby reducing risks.
     He said demand for Envirotainer’s containers had been boosted by the changing nature of the pharma trade in Asia. “The last few years have been very good and 2011 will most likely be exceptionally good in terms of how many customers see the advantages of active temperature control containers in a geographical part of the world which often has extreme high temperatures, humidity and where the product often travels through a variable infrastructure,” he added.
     “We are also delighted to work closely with many Asian flag carriers who have invested in specific cargo products, services and training of their staff to support the demanding healthcare industry.
     “Together we can now serve all of Asia and Oceania door-to-door within 48 hours.”
SkyKing

At Lufthansa Cargo—Americas Cargo Dream Job

     We sit down with Achim Martinka, Lufthansa Cargo Vice President the Americas in Buckhead—Atlanta’s “in” neighborhood—where the Lufthansa Cargo offices are located.
     Time has quickly marched on from that cold, snowy New York day in January when we first met at his inaugural press briefing.
     And the difference is not just that it is a hot Atlanta summer afternoon in 2011 – Achim has grown into what he terms his “dream job,” which he visibly enjoys and is so much more relaxed talking about.
     It is his 6th career move, and he says he is well adjusted to the rhythm of starting up in a new position and hitting the ground running, living up to new challenges every day. Achim manages a staff of 500 and travels extensively among the U.S. gateways, which take up a good 2/3 of his time and efforts, and the “rest” of the Americas.
     What also makes his work challenging and interesting is that the issues differ so much within the U.S. stations and further south. The net result though is that he spends 6-8 days a month in his Atlanta head office and the bulk of the time on the road, meeting customers, staff and attending various functions.
     Achim says, “I have a great team —5 regional managers: Christian Haug, based in New York for the East Coast; Dieter Vranckx, in Chicago for Canada and the Midwest; Veli Polat, in LA for the West Coast and Mexico, Carl Unger, in Atlanta for Southern U.S.A. excluding Florida and SAO which is handled by Daniel Bleckmann. “Further supporting functions are handled by 5 team-leaders, Toni Pattaca for Central Revenue Management and After Sales Service, Daniela Mendez for HR, Alison Ricker for Key Account Management and Vishal Bhatnagar for Handling and Processes.”
     Lufthansa Cargo added Houston as a new destination and actually increased frequency to twice weekly since June this year without impacting its Dallas flights.
     “We have successfully opened 3 new freighter-stations in the first 6 months of 2011, MAO, IAH, BQN. We will further extend our network in the winter period with the opening of Rio de Janeiro with PAX-flights and additional Cargo frequencies to LAX, MEX, VCP/UIO/BOG.”
     The current market provides unique opportunities to Lufthansa Cargo, in Achim’s view, in particular because of a good balance of Atlantic flights in the face of weakening Asian markets and continued record German exports. When additional capacity is needed, Jade aircraft is being used with 012 air waybills, which provide a degree of internal flexibility, albeit on competitive terms.
     Lufthansa Cargo has a program consisting of 12 global partners managed by each of its respective four areas – Germany, Europe and Africa, Asia and the Americas. The quality initiative first implemented in Germany has been rolled out in the Americas and the 2011 award winner ceremony is planned for mid-October.
     When asked what surprised him, Achim says the realization that the U.S. is not really one homogenous market, but rather an amalgam of gateway specific situations; whether it’s the East Coast, LAX, IAH or ORD, each differs, gateway by gateway, very much like what he experienced in Europe. While in general the U.S. market is saturated and each carrier fights for its market share, elsewhere, in Mexico and Brazil for example, it’s a growth market. The day-to-day challenges differ in Manaus vis-à-vis Houston, from ramp handling in one to e-freight in the other.
     The vast majority of his staff is on local contracts, which reflects the markets the airline serves. Achim is intent on building up the American potential, particularly on the management side.
     Talking about what lies ahead in 2012, Achim sees the focus on consolidating the gains made in 2011 and the positive results that have been achieved while planning for a slight increase overall.
     Lastly, we ask this busy and dynamic executive, who has been growing much more comfortable in his skin, what he does to relax. Achim is all smiles as he tells me he has finally found a soccer team he will play on. With a young family—his children are one and three—spending time with loved ones is what he likes to do most.
Ted Braun

American Airlines Cargo's
Tom Grubb

     American Airlines Cargo named Tom Grubb as manager of cold chain strategy, leading the strategic oversight of American’s time- and temperature-sensitive cargo services.
     A longtime veteran of American’s Cargo division, Grubb served most recently on the cargo operations team as manager of customer service strategy.
     Grubb was pivotal in the development of American’s existing cold chain service, ExpediteTC.
     "Tom brings 20 years of dedicated service to AA Cargo, implementing strategic sales initiatives as well as operational solutions for American’s product and service portfolio,” said Dave Brooks, president of American Airlines Cargo.
     "In this newly created position, he will play an important role in our continued drive to provide world-class cold chain services for our customers on a global scale,” Dave Brooks added.
     “Those of us who work with time- and temperature-sensitive cargo know the cold chain is serious business.
     “With some products like pharmaceuticals or biologic medicines, a filled LD3 container can be worth over $20 million.
     “More importantly, these products can save and change lives. Getting the cargo to the people who need it—on time and within a viable temperature range—takes training, coordination and proactive monitoring.
     “Like a relay runner with a baton, there is no room for slow starts, missed handoffs or dropped cargo in the cold chain.
     “Whether a small clinical trial shipment or a large temperature-controlled ULD, a company’s processes, training and infrastructure must come together to keep the cargo viable.
     “This is much easier said than done.
     “While trust remains a part of cold chain shipping, technological developments are giving shippers and carriers greater access to data, which helps us better understand conditions while in transit.
     “New technologies like data loggers and sensors are becoming increasingly standard, particularly given the need to satisfy new and updated international and country-specific regulations on cold chain shipping. These same technologies also provide carriers additional information with which to evaluate and improve both handling processes and facilities as we strive for continuous improvement for these critical commodities,” Tom Grubb said.
Geoffrey Arend/Flossie

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