Vol. 10 No. 97                                                                                                               Wednesday October 5, 2011

United Cargo—
Everything Coming Up Roses


     Some Ex-COns, now United Cargo people are pictured. UA team: Andres Torres, Mildred Garcia Bog, Tim Nara IAH, Maddy Marrero Mia and Michael Cano SFO.
     Columbian President Juan Manuel Santos presided over opening ceremonies of the biannual Proflora "best floral trade show" in Bogota last week.
     UA Regional Manager Latin, Maddy Marrero hosted a joint sales effort of UA and ex-COns to a late-arriving, but busy session on September 28.
     Reports that floral business has been robust from Columbia and Ecuador this year and October/November is going to continue that trend.
     Works for us…
     In a breaking news development Monday October 3 United Continental Holdings said it has in place a new logistics agreement between United Cargo, the cargo division formed by the merger of United and Continental Airlines, and Forward Air, Inc. Under the terms of this multi-year agreement, Forward Air is now the primary provider of expedited ground transportation service in the U.S. for United Cargo.
     Subsidiary Continental Cargo and subsidiary United Cargo both had extensive trucking networks to support their transport of cargo by air.
     Aligning these two networks, and contracting with Forward Air as primary provider of trucking service in the U.S., provides a wealth of benefits for the combined United Cargo and its customers. These benefits include additional destinations, increased frequency, optimized capacity and access to Forward Air’s 24/7 logistics support team and state-of-the-art shipment tracking tools.
Geoffrey/Flossie

 

Low Air Freight Rates
Reducing Cost Advantage

     Low air freight rates are reducing the cost advantage that has typically seen forwarders and shippers use sea-air options on Asia-Europe trade lanes.
     Last year Europe embarked on the major process of restocking following a recession volumes spike, but this year they have subsided in alignment with volumes and air freight rates, although operators are hopeful of a third quarter improvement in flows.
     Raymond Lee, SVP, Freight Management, Asia Pacific at Ceva Logistics, said bearish air freight rates and excess capacity had reduced volumes of cargo moved globally using sea-air. But the variations and advantages it offered shippers—reduced shipment time compared to ocean and less expensive than pure air—had seen the solution retain its popularity as a ‘third way’.
     “While it is correct to say that the more competitive airfreight rates available in the market have had an impact on the sea-air flow, those with the intention to use the sea-air mode will still continue to do so,” he said.
     “Sea-air is a niche product and always has been in competition to pure air freight and pure ocean freight in terms of cost and lead times. Hence this is nothing new, with the only difference being that nowadays the sea-air operators have to be more resourceful in their procurement approach and work more cost efficiently to compete in this competitive market environment.”
     Robert Taylor, (right) Assistant General Manager at Modern Freight Company, a Dubai-based sea-air specialist, said 2010 was the company’s best year on record for sea-air. “Last year the volumes were constant each month, whereas in the past our busier months are usually during the normal peak season times,” he said.
     “This year, however, seems to be following the earlier trends where we are receiving regular consolidations from the Far East, but they are somewhat reduced from that of 2010. Although with the onset of this year’s Peak Season due to start in September, we are looking forward to seeing the volumes increasing once again.”
     Emirates SkyCargo mainly moves garments from Asia to Europe using its sea-air service vai Dubai. “The air-air product in comparison to sea-air is more expensive and sea freight from east to west is more time consuming, hence it’s an ideal product for the garments traffic,” said Sai Prakash Nair, Emirates Cargo Sales Manager.
     “Germany is the single largest destination for our sea-air product.”
     He said volumes this year were approximately 10-15 percent lower in comparison to 2008, but he also predicted volumes would pick up in the third quarter in the build-up to the peak season and said further growth was expected next year and beyond.
     “With the ever-growing demand, we have allocated a dedicated area in our Dubai hub for major sea-air operators,” he said. “As this business increases, we intend to increase this space to ensure a seamless and smooth operation.”
     Indeed, over the last decade, Dubai has supplanted hubs in South East Asia, which can also offer transshipment economies for both ocean and air as the leading location for sea-air on Asia-Europe routes.
     “Singapore used to be recognized as a key sea-air hub for SE Asia, particularly serving Indochina and Indonesia where shipments are shipped into SIN and flown out,” said Lee.
      “In those days, SIN was a natural sea-air hub because of its geographical location, availability of air capacity from SIN and, more importantly, general lack of international air capacity from these origins, but this has evolved over the years. We see less of such traffic primarily because of the injection of air capacity directly from these markets today.
     “On the other hand, Dubai has established itself as one of the major multimodal hubs over the years, due to its strategic location and excellent infrastructure, which has facilitated its development to become the [leading] sea-air hub for goods transiting from Asia to EMEA.
     “The Dubai government and it’s transport industry realized a long time ago that only state of the art infrastructure in conjunction with attractive business models would ensure the sustainability of the growth of Emirates and Etihad airlines, because in the UAE there is basically not enough local production to fill the export capacity on board these planes without transit cargo, be it by sea or by air.”
SkyKing

 

 

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Lufthansa Charter Celebrates
Ten Years

     While everyone is raising high the roof beams in celebration of 100 years Of German Air Cargo this year, another milestone worth noting just occurred on October 1, as Lufthansa Cargo Charter Agency celebrated ten years to the day since its founding.
     Lufthansa Charter, headquartered in Cargo City Süd at Frankfurt Airport, operates a global network of distribution partners as a wholly owned subsidiary of Lufthansa Cargo, with competence centers in Chicago, Dubai and Hong Kong.
     LCCA is also a heart and soul resource for the global shipping industry, well known and respected for its tenacious can-do attitude, and also for its great people, acknowledged as the best in the business.
     Whether it is an emergency shipment, a special handling assignment of racecars or other high value consignments, Lufthansa Charter answers the call better than any other company in the charter business today.
     Although the company is operated as an entirely separate entity from Lufthansa Cargo and is a consistently profitable enterprise, as decade two begins, Lufthansa Charter gets the attention and support of its parent in any situation, including those best of times/worst of times moments when an aircraft is needed before the next heartbeat.
     “We are a family company,” says Reto Hunziker, LCCA Managing Director.
     Mr. Hunziker is only the second managing director the company has ever had.
     Its founding MD, Christian Fink, now off on a new venture at Lufthansa, is today Managing Director of Handling Counts and can be found at any one of the several social events LCCA hosts each year, including the legendary Summer Party annual customer event.
     Talk about bringing the family together: the Lufthansa Charter Summer Party was first held in Darmstadt at a lovely 1920s-era petting zoo called Vivarium, and just this past July in a 12th Century castle. It’s all about the kids of the company itself and the many customers who travel from around the globe to attend this wonderful event.
     “Sure, all the employees of Lufthansa Charter Company have a job here, but they also have a kind of spirit of togetherness and helping one another that is unique to air charter and works in many ways to make this company different from all others,” Reto says.
     “These folks are not just my employees and subordinates; they are my family,” he added.
     “We have done a good job so far.
     “However, we all know that this is no time to relax, there is still a lot to do.
     “I’m most proud that most here welcomed me and understood and embraced our new philosophy and the new approach.
     “Just in the past year, we inked several new landmark pacts, including one with Platinum Air Cargo, and opened a sales office in Miami.
     “We are spreading our wings.”
     Christian Fink, who is founding Managing Director LCCA and served in that post until 2007, recalls:
     “Actually, the history of cargo charter flights within Lufthansa goes back to the days when German Cargo Services was founded specifically for that purpose.
     “As the late nineties arrived and Lufthansa Cargo, as it is today, was founded, evolving to become one of the leading (or the leading) scheduled network carriers in the world, LH capacity for all the special flights demanded in the market became scarce.
     Christian Fink recalls:
     “So three humble—at that time still young and fresh—men, i.e., Martin Nosbüsch, Eric Erbacher and Jürgen Stille, the remaining rest responsible for the charter business, started thinking about their destiny.
     “The concept they came up with was the basis of what LH Cargo Charter is today: the combination of the excellence of Lufthansa services and quality combined with the aircraft capacity that perfectly fits the customer needs for the specific project.
     “The idea quickly evolved into the creation of a Lufthansa Cargo internal profit center and the growth and success of this unit lead to the decision to give this part of the business its own identity, market appearance and room to flourish.”
     In 2001 as Lufthansa Cargo Charter Agency Ltd. was born and started its business activities, the first "official" MD of the company was the General Counsel of Lufthansa Cargo, who was partly responsible for the administration of the founding process.
     It turns out somebody was needed (and nobody else was found) to fill in as a placeholder for the German registry of companies, so LCCA was headed up by the aforementioned Christian Fink.
     The real, new charter-life started with a welcoming house-warming party at the old Kelsterbach offices (at that time, the only offices, but Chicago, Hong Kong, Dubai and the rest were to follow soon).
     Guests at the launch were the charter group and their partners, LH Cargo board members and the supervisory board of LH Cargo Charter. Speeches were given, exclamation marks were set and the building remained filled with question marks as to where this (ad) venture´s journey might lead.
     LH Cargo Charter was LH Cargo´s first "spin-off" company and the initial steps in that direction.
     Proving their cases, great enterprises such as time:matters, Jettainer and others were to follow successfully.
Christian Fink remembers:
     “Quickly, with 40 flights on 747F from Budapest to Memphis within 8 weeks (the area of the TV/video game-units started!), first achievements could be noted.
     “But even so, initially the group seemed to remain somewhat in anxiety and hesitation, apparently waiting for heavenly input of what and how to do.
     “But the gang never stalled: in the years to follow the exhaustive work of numerous brave women and men developed and formed the dynamic, self-managing and refreshing group of people that finally topped and awarded their efforts with achieving more than 100 Mio Euros revenue in 2007.
     “Many of them can be mentioned, such as Eric Erbacher, who took the responsibility for launching the Chicago as well as the Hong Kong office successfully, or Volker Dunkake who formed and created the complete organizational and financial backbone of Lufthansa Cargo Charter.
     “Or Heide Enfield and Kirsten Giesow, who brought the company into the market and in the news—and customers to the Vivarium!
     “Or Mischa Tauss, who created BORIS, the electronic mastermind of the business.
     “Or Sebastian Viereck and the late Heiko Schindler, who obtained traffic rights permits in the strangest corners of the world and at the strangest times of the day.
     “The listing could be long continued, and the stories about the most exotic charter projects would well fill more than a warm Indian-summer evening in one of Germany´s best beer gardens.
     “But for sure, nobody should be forgotten: not all the enthusiastic guys and girls in sales and services that, together with the customer, create new charter flights every day, nor the experienced and courageous operations-staff and load masters that make all these special projects possible, and never the reliable and trusted workforce in finance, administration and IT who—truly—keep it all together.
     “They all were and are part of the history, the present and the future of this innovative and challenging part of the air cargo business,” Christian Fink said.
     “When we started,” comments Heide Enfield, LCAC, head of business development and marketing, “our charter clients often inquired to make sure their load was on a Lufthansa airplane.
     “Customer attitudes have changed during the past years.
     “Shipping today is a matter of hard economics and less a matter of airplane loyalty than in past days, I think.
     “But customers want to know that whatever the price, the consignment is in Lufthansa’s hands.
     “Who is flying which airplane is secondary,” Heide proclaimed.
     “We are a pure service industry, especially in the charter segment, says manager Hunziker.
     “Our job is to listen to the customer.
     “In that respect we have been remarkably consistent every year since LCCA opened for business.”
Geoffrey/Flossie


Cargolux To Accept B747-8s

     Cargolux said that it has a tentative agreement to accept both B747-8s that the air cargo carrier rejected at moment of delivery in September.
     Cargolux will finalize the deal at the next board of directors meeting on October 7.
     CV rejected delivery of the first two 747-8 as (reported here exclusively) because of shortfall in fuel-efficiency guarantees.
     That decision was taken at September16 BOD meeting that was the first attended by Akbar Al-Baker, Qatar Airways CEO after that carrier took a 35 percent stake of CV in June.

 


Flossie Arend

Lisa Schoppa

Carmen Taylor

Heide Enfield

 

Andy Rooney
Road Slows To Hell

     “It’s amazing how long this country (USA) has been going to hell without getting there,” said Andy Rooney in his weekly resident oracle report on the CBS television news program 60 Minutes.
     Rooney, who is a hero around here just retired at age 92, capping a career in print and virtual reporting that began when in 1944 as a cub reporter he landed on Omaha Beach in Normandy, France.
     Rooney says although the weekly gig (he began delivering his two minute essays on 60 Minutes in 1978) is finished, he will check in occasionally as thoughts arise.
     Over, but not Out, Andy.
Geoffrey


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