Vol. 12 No. 82                        THE GLOBAL AIR CARGO PUBLICATION OF RECORD                    Tuesday September 24, 2013
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THE AIR CARGO NEWS THOUGHT LEADER  


FlyingTypers recently had the rare pleasure of chatting with a senior industry figure possessed of the intellectual dexterity and conversational chutzpah to link the glamour of Hollywood to bills of lading, and compare the content of a forthcoming conference to lovemaking. No mean feat, readers! This gem of an interviewee was none other than the ever-charming Stanley Lim Hwee Hong, President of FIATA.
Part one of our exclusive follows . . .

IATA’s annual World Congress will be hosted at Singapore’s Suntec Convention and Exhibition Center October 15-19. Before sharing his kaleidoscopic views on the transport industry, Lim said he was expecting this year’s meeting to be a resounding success.
“Shopping for priorities in a Congress like this one is like choosing between better and best,” said Lim. “We have a lot to report and deliberate upon with regards to the Air Cargo Modernization work that FIATA is doing with IATA. There is a very interesting new approach to FIATA Vocational Training programs that will be discussed in the ABVT. We have exceptional speakers in Customs, security, intermodal transport, and the new Logistics Performance Index, where FIATA cooperates with the World Bank—they will have their own physical presence at the Congress. Mr. Tony Tyler has also promised to speak about the way FIATA and IATA members can ‘deliver solutions together’.”

    He said attracting 900 participants to Singapore would be viewed as a moderate success, 1,000 a decent success, and 1,500 an enormous success. “2,000 would be a real problem; where do we put them all?” he laughed. “Besides the joke, success is almost invariably reflected in numbers. I do not deny that we can do better than we have done for some years, but if the trend we see in headquarters is maintained, we will be on record numbers—we have seen more or less 15-20 percent more year on, year off.”
     The Singapore exhibition will follow up on from some of the achievements of last year’s Los Angeles meeting, which Lim said was a standout success, not least because of the greater understanding reached with the Federal Maritime Commission regarding the delivery of cargo without presentation of the original bill of lading.
     “The Commissioner’s views on sustainability openly echoed the themes of our position paper on sustainable transport and logistics and transport-related emissions—one could say these were important political achievements,” he said. “On the other hand, we made record numbers and received favorable echo in the press.”
     Asked why forwarders should fly from all corners of the globe to attend the World Congress in Singapore, Lim was effusive and clear. He believes the potential of combining networking and advocacy, as well as the opportunity to debate policy, standards, regulatory compliance and vocational training at the highest level, is not a combination available anywhere else.
 FIATA President Stanley Lim, (left) and Andrew Kemp, (right) Regional Director TT Club (Award Sponsor) present the Young International Freight Forwarder of the Year award to Daniel Terbille of UTi South Africa in Los Angeles in October 2012. For More about Daniel's paper click here.

    “Do you remember what Ian Gordon, our intern, wrote last year? He wrote, inter alia, ‘As an intern at the offices of FIATA, I found myself in sunny Los Angeles for the proceedings at a hotel in Beverly Hills. TIA had organized the details with a certain flair and pizzazz so unique to Hollywood-country. It was my first time attending a FIATA World Congress. I woke up on the first day unsure of what to expect. It was only on my way to the opening ceremony, that I began to understand the magnitude of the organization and the power it has to unify the freight forwarding industry all over the world.’
     “You may certainly make very good business also outside of FIATA, this is unquestionable, but if you want to be on top of the issues that run through our sector in life size and real time, then you must be part of it, this is not something you can watch on TV. Please forgive my impetus, but there is only one way of making love: you must be there.”
     FIATA’s World Congress opens with a golf tournament. Asked if holding such a leisure event was incongruous in such a tough business climate, Lim was adamant. “Well, not everyone plays golf, but I am a golfer and I thoroughly enjoy it,” he said. “It is traditional for FIATA to have a golf tournament at Congress and so far it has been rather successful, why turn it down? We tried with tennis, but it did not work, so we turned it down. If golf works, why pack it in?”
     Indeed!
     Lim describes FIATA’s Young International Freight Forwarder Award as a global benchmark.
     “This has been running for over 10 years and has introduced in our sector the concept that you are as good as me and we work in the end in the same sector, be it in Asia, Europe, Africa, or anywhere else,” he said. “The award is giving the enormous work done by the ABVT the visibility that it deserves.”
Sky King

     Absolute all-time FlyingTypers fave, Marco Sorgetti, FIATA Secretary General, is the quintessential joyful individual; when he enters a room, everybody feels included in the agenda, whatever it may be.
     Marco looks a bit like Pavarotti and although he doesn’t sing like the late maestro, his words, actions, and deeds are lyrical and, in 2013, refreshing.
     He is also quite candid in a time when others favor a measured response.
     For example, as he assumed the post of FIATA Secretary General, he said right away:
     “I am immediately impressed by the kindness of the people I met, both in the office and outside.
     “All are going out of their way to be helpful.
     “This is a very comforting feeling.
     “My top priority is certainly to contribute to FIATA’s success.
     “But I believe the cooperation between airlines and forwarders on the one side, as well as forwarders and shippers on the other, needs to be strengthened in light of a relationship which reflects modern business paradigms.
     “I think we should all be looking straight ahead and ready to support one another.”
     Marco is situating in Singapore during The FIATA World Congress.
     Check him out.
     This guy will make your day.
Geoffrey



     At the end of August this year, India’s Civil Aviation Ministry gave the operations document of GAGAN (the GPS-Aided Geo Augmented Navigation) to the Directorate General of Civil Aviation (DGCA), the country’s aviation regulator, for certification.
     The 150-odd page operations documents have been prepared for GAGAN from its initial conception to the operational testing and evaluation, and will be examined in detail.
     When it is implemented in 2014, GAGAN will be the fourth operational Satellite Based Augumentation System in the world that will take Indian aviation into the Global Navigation Satellite System.
The GAGAN project, being implemented by the Airports Authority of India (AAI) and the Indian Space Research Organization (ISRO), is aimed to provide seamless navigation over Indian airspace with real-time position to multiple users. The first of the series of seven regional navigation satellites that are needed to provide navigation service and independent of the GPS (Global Positioning System), have been launched.
     GAGAN will provide a civil aeronautical navigation signal consistent with International Civil Aviation Organization (ICAO) Standards and Recommended Practices (SARPs) as established by the Global Navigation Satellite System Panel (GNSSP). In addition, GAGAN has the capability of meeting ICAO-SARPS requirements through its Technology Demonstration System (TDS) Phase.
     The home-grown GPS, as the GAGAN project is often termed, will help to not only improve communication but bring in safety and reduce air traffic congestion. All this will aid air navigation in this part of the world – because, according to Boeing, the next 20 years will see around half of the world’s air traffic flying to or from the Asia Pacific region with aviation supposedly growing 6.4 per cent: 12,000 aircraft will join the present fleet of 4,700 planes.
     While Raytheon is building the ground stations for the GAGAN system, ISRO and AAI are providing the space segment, additional ground equipment, as well as participating in the integration and operating the system. Mitre from the U.S. is the technical advisor for the certification programme.
Tirthankar Ghosh


 

     Growing while cutting sounds more like a miracle treatment for baldness than a business strategy. But one global logistics provider claims this approach is yielding rich dividends in air freight markets, despite their sterile state.
     Remo Eigenmann, Head of Air Freight at Damco, the logistics arm of the A.P. Moller - Maersk Group, claims his company is increasing flown volumes by following the seemingly contrarian strategy of attempting to limit its customers’ use of air freight.

     “Our slogan stands: ‘We want your air cargo to help you reduce it’,” he told FlyingTypers.
     “It really does summarize our approach to customers very well. We are trying to find the optimal transport mode for all customer needs.
     “Damco is offering a wide range of transit times and we keep a constant eye on the supply and demand situation and seek to come up with innovative solutions that—at all times—can match the requirement of our customers, whether that is Sea-Air or Air-Air.
     “As an example, we recently grew substantial volumes ex BD via an ‘air–air’ solution due to capacity constraints on the ‘direct’ options out of Bangladesh.”
     The approach is certainly delivering results. Damco’s global air freight volumes increased from 110,000 tons in 2011 to 210,000 tons in 2012, and this was followed by first half year-on-year growth of 14 percent in 2013. Indeed, worldwide Damco now boasts some 11,300 employees, more than 300 offices across 90 countries, representation in a further 30 countries, and net turnover last year of USD$3.3 billion.
     Eigenmann admits air freight markets are still tough and margins tight, but said the job of 3PLs was to extract the best value possible.
     “While we realize that we cannot influence market dynamics we strive to simplify the way we do business in order to reduce our unit cost and thereby stay competitive even when margins are eroding,” he said.
     “At Damco, we see a huge potential to optimize our processes and we consider one of the key points to be electronic exchange of data. In this context we recently signed the IATA multilateral e-awb agreement and subsequently we are presently implementing the e-awb in as many locations as possible.”
     Damco is also expanding its network. Traditionally strong on trade lanes out of Asia, its presence was further boosted with the acquisition of PacNet in 2012, which boosted logistics options between Asia and Oceania. This followed the 2011 acquisition of China air freight forwarder NTS. “We consider the integration of NTS successful,” said Eigenmann. “As a consequence, our operating platform has been considerably improved. We clearly see that we are winning more and more new business due to our enhanced ability to offer competitive services out of this important market.
     “Over the next three years we plan on expanding our number of commercial offices to 600. Many of these will be located in growing Asian markets.”
     Last year retail was the standout vertical for Damco, with chemicals and technology also major contributors. Government and defense were important for the 3PL’s business in the USA and the Middle East, while aid and relief made up a large chunk of business in Africa.
     “We have high expectations to further develop our lifestyle and apparel business, as well as industrial logistics activities,” said Eigenmann. “The Latin American region is also one of the current bright spots as it offers great potential, [but] we believe that Intra-Asian trade is going to achieve the highest growth rate in the years to come.”
     And despite China’s export slowdown and weaker uplift from some traditional centers, he predicts the Middle Kingdom will remain a key component in any global rebound in air freight.
     “Exports and imports between Greater China and other emerging markets saw an upward trend of between 6 percent and 15 percent increase for exports, and between 6 percent and 23 percent for imports last year,” he said. “This trend looks set to continue.
     “Although China’s growth rate was about 7.7 percent last year, its Southern regions remain interesting, and the Western region continues to grow. The increase in e-commerce and e-fashion is also significant.
     “We expect China to remain the powerhouse of the world economy and we will subsequently adapt our strategy, whenever and where needed. Our current gateways in HKG, PVG, and PEK will retain their importance.”
SkyKing


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