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   Vol. 19 No. 62
Monday September 14, 2020
Trust and the Market
Trust and the Market

     In case you have been at the shore all summer with no phone or computer, air cargo is not only doing very well right now, in fact not since the wild days of the China build up a couple of decades ago have rates been as sky high.
     Do the math. When the pandemic struck if you could get 4 bucks a kilo you might have been a local hero,
     Right now, ex-China rates are as high as $25 per kilo.
     So, while everybody takes a deep breath, have no fear that when and if a cure comes for COVID-19, the market will drive the delivery of therapeutics and vaccine, just as it does everything else.

Political Aftershock

     No doubt that in many parts of the world, the change in China policy can be classified politically as just short of a complete break as the aftershock of COVID-19 elevates one key word between China and most of the rest of the world.
     The word is trust.
     It seems many parts of the world in 2020 will no longer be too trusting of China, and in fact this year something that seemed impossible last year, has begun as nations are pushing back against China.

Huawei Still Forging Ahead

     But still in some quarters trust remains based on long standing and bipartisanship in both the Executive and Legislative branches of governments, with some Chinese companies including, for example, Huawei still able to advance themselves.
     In the U.S. we feel the split right now on an academic level as schools open for Fall and University transfer of data and foreign donations from China are met with increasing counter intelligence efforts and imposed sanctions.

Sanctions Go Deep

     Trade sanctions between the U.S. and China are also the rub, as currently they are deeper and a bit wider than similar trade policies that have actually been in place for some years.
     While many question the trust, the answer is as old as what President Reagan said in his dealings with Russia that culminated in the end of the Cold War:
     “Trust but verify,” said our 40th President.

Trying To Save The World Two Ways

     In the first instance we all know that air cargo alone cannot save the airlines as they are today.
     But in the second case, air cargo is experiencing gold rush times, lifting as many planes as possible right now.

    Mika Kilpinen, Finnair Cargo

Finntastic Finnair Cargo

     Finnair Cargo, the airline that still flies to HEL (Finland) and back, has gone all in to the cargo business opportunity right now.
     Among other moves to enhance its cargo offering, the always innovative and ambitious carrier converted a pax A330 aircraft into all-cargo service.
     “Without passengers how are we supposed to stay in business?” Mika Kilpinen, Development lead for Operations, Quality and Compliance mused.
     “The conversion took about two weeks of planning, but the physical transformation took five working days,” Mika said.
     “To use the cabin space for cargo, we removed Economy Class seats creating 22 cargo areas that are secured by nets. Each of those areas can carry 250 kg per square meter, between 600-1,400 kg and in volume 4-9 cubic meters.
     “We utilized the same rail that holds the passenger seats to secure the nets for the cargo load.”
     The carrier has pressed two other A330s from its fleet for enhanced cargo carriage and is also moving main deck cargo aboard its long range A350s for cargo in seat.

You Ain’t Seen Nothing Yet

     Look out Leroy, because just around the corner will come a sky full of therapeutics and vaccines that 8 billion people on the planet will all demand at once.
     In the case of that prayed-for-vaccine, two shots apiece is the reported prescription.
     As deals to activate CRAF, the U.S. Civil Reserve Air Fleet are now set, we will see U.S. flags pressed into service (read as FedEx, UPS getting the lead there), the airport taxiway fleet sitting silent with no place to go, will spring to life and be pressed into service.
     COVID-19 is destructive, heartbreaking, a hell on earth that has left humankind with nowhere to run, nowhere to hide, touching everyone in the world in some way.
     Now human determination, spirit, hope and science will come to the fore.
     We can’t wait for tomorrow, because what we do in air cargo looks better every day.


If You Missed Any Of The Previous 3 Issues Of FlyingTypers
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Vol. 19 No. 59
Days of Futures Past
Ancher Handicaps Cargo Futures
chuckles for August 24, 2020
Pandemic Pulled Blanket Off
Dave Brooks Look for Opportunities
Cargo 1000 Goes American
United Krems a Cargo Superstar

Vol. 19 No. 60
True Confessions of a Freight Forwarder
Chuckles for August 31, 2020

Vol. 19 No. 61
Time & The River
Chuckles for September 5, 2020
Air Cargo Took off above the Himalayas
Why FlyingTypers

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