atrick Murray talks about innovation and building fast growing Calogi with great enthusiasm and hope.
Murray is no stranger to IT, having been involved with various systems from British Airways to IATA to Mercator.
     But as we have learned, Calogi is building from the ground up for the world air cargo community.
     Amidst a growing number of IT companies, Dubai-based Calogi is rising quickly, providing a secure Internet service portal “that offers a one-stop platform for a range of air cargo businesses from around the world to negotiate and sell products and services online”.
     “Calogi is 24/7 business-to-business and business-to-consumer cargo logistics network that was developed jointly by Calogi and Mercator, the IT division of Emirates Group,” Patrick Murray said.
     “Calogi offers a multitude of services, and since its Dubai launch in July 2008, the number of Calogi subscribers and transactions have experienced phenomenal growth,” Patrick Murray says.


     "Business is just great, and we continue to go from strength to strength. In July we recorded our highest number of transactions ever. And we increased our transactions by over 25 percent versus the previous financial year. Of course, none of this would have been possible without support from our customers, and so in April we presented our top performers with special achievement awards at a dedicated lunch event held at the prestigious Armani Hotel in Dubai. We recognized cargo forwarders, airlines, and general sales agents (GSAs) for their support throughout the year.
     "While we are on the subject of customers, twice a year we like to take the pulse of the industry, through an online survey, to see what our customers think of our services and what they would like to see us do better.     "We were very pleasantly surprised with the results. Overall satisfaction with Calogi is extremely high. 70 percent of FF and 60 percent of GSA/ALN rated it ‘Excellent’ or ‘Very good.’ 75 percent of Freight Forwarder end users view Calogi as better compared with similar IT solutions, while 66 percent of GSA/ALN have the same view.


     "The push to move our industry to electronic trading systems has never been so strong. Witness the rash of announcements of several airlines and IATA of just the past few weeks. E-AWB is on everybody’s agenda and we now have a real chance to move the industry forward. We will grasp this opportunity with both hands and do everything in our power to make this happen. Calogi believes that we have a pivotal role to play in the transformation.


     “We have been very busy with the implementation of our Road Feeder Services (RFS) Solution for a number of truck operators in Dubai, including Pan Airport Logistics (PAL) - the largest operator of roller-bed-equipped vehicles linking various airports across the Middle East.
     “The module gives road feeder service (RFS) operator’s complete visibility of the shipments allocated to them through a standard interface with the ground handling system.
     "Furthermore, operators can publish schedules, manage capacity and volume, produce load plans, and send booking lists to cargo terminal operators. We also use our clearinghouse function to collect the RFS handling charges on behalf of the terminal.

     "We have made no secret of the fact that we are developing the electronic consignment security declaration and we plan to trial this in the London community. This will remove yet another paper document and considerably speed up the movement of the goods while they are on the ground.
      "Also Calogi has just implemented a branded version of our portal for SNTTA Cargo, the UAE's premier air cargo general sales agent. Such is the popularity of doing online business, more than 50 forwarders subscribed to the new web portal on the first day of its launch. SNTTA can now connect in real-time with freight forwarders. Agents can request electronic bookings and rates, execute e-AWBs, receive e-invoices, and raise electronic charges correction advices from SNTTA's website.

     “Our research uncovered that the air cargo market required an easy-to-use portal in more than one language, and we responded to those demands by releasing Chinese, Portuguese and Spanish versions.
     The multi-language versions of Calogi support our international ambitions to penetrate the European, Chinese, and South American Market. It is worth noting:
     1. In Brazil* and Mexico**, less than 5 percent of the population speak English.
     2. In Portugal*** less than 27 percent,
     3. In Chile**** less than 10 percent
     4. In Spain***** less than 22 percent
     5. In China****** less than 1 percent.

     "What this tells us is that the multi-language version of Calogi is a must to be able to gain acceptance amongst the air cargo supply chain stakeholders in these countries. We pride ourselves on making things easy for our customers and a multi-language version of our portal seemed a natural progression for us. The multi-language versions of Calogi are available for immediate use and the language preference can be selected after logging in as part of the user profile.

    "I remember that at Air Cargo Europe, during the Panel Session 1: In search of innovation at Air Cargo Europe, Prof. Dr. J. Rod Franklin, P.E., Managing Director, Executive Education Adjunct Professor of Logistics, The Kühne Logistics University, felt the industry was trapped in a ‘bunker mentality.’ I think one of our biggest challenges is to address this and encourage more and more air cargo stakeholders to adopt online business models. Air Cargo is a complex business. Customers need simple solutions and yet we continue to be plagued by paper-based processes and complex Customs procedures, so how do we make it easy and attractive for our customers to do business with us.
     "Ideally we can encourage customers to do this by making them the starting point for any development.      
     "But the main communication tools are still email, telephone, and fax. We have to change the mindset and automate as much as we can, reducing the need for call centers, which more often than not involve lengthy waiting periods.

     " The concept of online credit card payment has yet to make its way into our industry and here I believe is a huge gap that needs to be filled. I believe this is mainly due to the cost of credit. Low-cost carriers will be the first to exploit this. If we see a demand, we will be more than happy to develop and implement a credit card payment gateway.

     "Very soon we will need to look at how we can maximize the use of smartphones to do business. There are currently 6.2 billion cellular subscribers with no foreseeable downturn in mobile subscribers. The new generation of mobile users will have a short attention span and will want business on the move. Trade will move from form-based applications to text and voice. Air Cargo needs to be ready for the transition. IATA anticipates that 50 percent of all passenger bookings will be made through smartphones by 2017. It would be good to see some cargo bookings made using the same medium.
     "There is no doubt that it is becoming increasingly difficult to create loyalty amongst customers with customers continually searching for the cheapest rates assuming a certain quality of services. However, running loyalty programs and allowing customers to accumulate and convert points into tangibles can often differentiate service providers when the playing field is level. The challenge is really to convince air cargo stakeholders that loyalty programs will work for them."
     We ask Patrick, where would he be appearing, whether he plans on attending FIATA in Singapore. His response is immediate:
     "Yes, we will be at FIATA World Congress in Singapore, along with the dartboard and the iPod/iPad prizes. We will also be at the IATA WCS in March. I will be speaking and moderating panel sessions at the Middle East Air Cargo & Logistics Exhibition, which takes place on April 9th & 10th, 2014, at the Abu Dhabi Trade Center. I have requests to speak at other events and I am juggling my calendar to see if this can be managed."
     Patrick likes to contribute and is rather results-oriented. He says, "this year I attended Air Cargo Africa as speaker. I really enjoyed the event and had the opportunity to meet with many potential customers. There is a large demand for solutions in the African market and the potential customers I spoke to see us as an exciting opportunity. The signing of a partnership agreement in Kenya gives Calogi a toehold in the African market, from which we can only grow.
     "Calogi also exhibited at the World Cargo Symposium. We were incredibly busy and managed to meet many key decision makers from the airline industry. As a result we have been invited to a number of airline head offices to discuss how we can help resolve some of the business issues they currently have.
     "I also had the pleasure of speaking at Air Cargo Europe. This is the first time I had attended the event, and there can be no doubt that if you want to meet the key decision makers, this is the place to do so.
     "As a result of attending the above conferences, we have generated over 20 proposals. We are confident that we will be able to convert a significant number of these into Calogi customers. These events are also great places to renew old acquaintances and meet new people."
     We ask him if he could share his feelings on the major challenges to air cargo (IT) and what should be done toward improvement.
     Patrick thinks about it for a minute, "first and foremost, as a provider of an Internet-based solution, we are dependent on the Internet Service Providers for the speed of the application. That being said, we have taken a fine toothcomb to our application and optimized the same to ensure that we can operate in many countries where there are bandwidth restrictions. The obvious advantage of an Internet-based solution is that you can be up and running instantly and there are no local installation activities/costs. We still want to see a progressive march to improving Internet speeds across the globe, but recognize that this will not happen overnight. Before we sign a partner distribution agreement, we conduct a full assessment of Internet speeds. If they are below a certain benchmark we will wait for an improvement.
     "Another challenge is still the fragmentation of solutions and the fact that many systems are still standalone. For instance, prior to our roll out of the 600+ Calogi Forwarders in Dubai, 90 percent had no means of conducting automated business. We find that the lack of automation exists in many other markets that we enter. When we are in market, the IT challenge had effectively been resolved. The biggest challenge then is to change the mind-set.
     "Finally, there is the cost of the IT solution versus the benefit. It’s very easy to identify the costs, but sometimes the benefits of automation are not easily recognized.
     "We believe that the proof of the pudding is in the eating and our approach is very simple. We allow our potential customers to use our system as part of a free pilot. If they are happy with the product and wish to continue using the service they can convert to being a subscriber. We believe we have a great solution and once a potential customer uses the system the immediate productivity gains will far outweigh the costs."
     We want to know what gets Patrick excited whilst the industry is going through a tough time. He says, "I look at the opportunities. One thing I know for certain: we cannot wait for another 30 years to modernize our industry. I think this is a great time to be providing air cargo solutions, as more and more companies realize that they need to change and automate the way in which they do business or the business will simply no longer be there."
SkyKing

     That much ballyhooed new Emirates route from Milan to New York, slated to begin Tuesday October 1, ”is a clear first step in long-term strategy by a heavily supported state-owned foreign airline to undercut U.S. airlines and hurt U.S. jobs,” Captain Lee Moak, President of Airline Pilots Association (ALPA) said Monday. “Ultimately, this is about saving U.S. jobs. “If we are not able to compete fairly, the U.S. airlines industry will disappear.
     “Foreign carriers like Emirates play by different rules. “As state-owned and state-supported, they have unlimited checking accounts and do not have to abide by the same tax, security and regulatory policies that U.S. carriers do.
     “We can’t stop the way they do business, but we are asking the U.S. government to make aviation policy decisions that advance the U.S. airline industry – not harm it.
     “Many foreign countries view their airlines’ success as critical to diversifying their national economy in the face of finite natural resources,” added Captain Moak.
     “We are asking the U.S. government to show similar tenacity in advancing the U.S. airline industry that ultimately has a positive effect on the country’s economy as a whole."

   All That Glitters . . . An exhibition titled Beyond El Dorado: Power and Gold in Ancient Colombia, arrived at The British Museum in London on Friday thanks to American Airlines Cargo. It included more than 200 pieces of gold and ancient artifacts.
    "A highly complex single cargo movement, and our cargo specialists in Bogotá, Miami, and London executed a textbook operation," said Tristan Koch, American's Managing Director of Cargo Sales and Marketing - EMEA.

   Lufthansa Expands & Lima Beams—Lufthansa Cargo adds Lima twice weekly with MD-11 freighters starting October 27.
   The outbound flight will depart on Mondays and Fridays via Dakar (Senegal) and Manaus (Brazil) to Peru. The return journey to Frankfurt will include stops in Quito, capital of Ecuador, as well as in Aguadilla in Puerto Rico.
   The airline said that it also wants to resume its service to the science hub Chongqing at the end of October and is negotiating with China.
   Chongqing was on the winter schedule for 2012, but dropped due to poor demand this past summer.

Written On The Wind . . . While the airport is rebuilding in expectation of the World Cup in 2014 and security is pegged as top agenda, late Sunday night Brazilian police said a gang of thieves moved into the cargo area of Sao Paulo's Guarulhos Airport Cargo and filled up a lorry with tablets and notebook computers worth an estimated $800,000 after overpowering security guards and taking two of them hostage.
     So far there are no leads, at least none that the cops are talking about.

RE:  Testing Lithium Logistics

     It is regrettable that readers of FlyingTypers were gratuitously misinformed by your recent articles (August 1, 2013, and August 21, 2013) on lithium batteries, specifically the applicability of the dangerous goods regulations, PRBA’s position on these regulations, PRBA’s role in the dangerous goods regulatory process, the evolution of the lithium battery dangerous goods regulations over the last eight years, and the UN Sub-Committee of Experts’ and ICAO Dangerous Goods Panel’s extensive efforts to develop a regulatory framework that ensures the safe transport of lithium batteries. We are writing to correct the compendium of egregious errors, shoddy reporting, and outright falsehoods contained in your articles.
     Let’s start with the statement that PRBA has obstructed “all measures” that would encourage the safe transport of lithium batteries. This statement is false. We request you retract the statement immediately, both online and in hard copy.
     The safe transportation of lithium batteries and devices containing them remains PRBA’s No. 1 priority. PRBA has long endorsed more aggressive enforcement by regulators. PRBA has advocated for measures that would bolster compliance with existing air transport safety requirements. PRBA has urged a crackdown on the manufacturers and shippers of dangerous counterfeit batteries.
     Most important, PRBA has long supported—not opposed—efforts requiring the U.S. Department of Transportation (DOT) to harmonize its lithium battery hazardous materials regulations by adopting the more stringent international air transport dangerous goods regulations. FlyingTypers would have known this had its reporters simply taken the time to read and understand PRBA’s extensive comments on the U.S. DOT lithium battery rulemaking. We also played an instrumental role in developing and supporting the new lithium battery Packing Instructions in the ICAO Technical Instructions, which took effect on January 1, 2013. These new regulations are far more stringent than the 2011-2012 lithium battery Packing Instructions.
     PRBA also has worked cooperatively with regulatory authorities at the UN Sub-Committee of Experts on the Transport of Dangerous Goods, ICAO Dangerous Goods Panel and IMO Subcommittee on Dangerous Goods, Solid Cargoes and Containers for the past eight years. In addition, we have a very good working relationship with the U.S. DOT’s Federal Aviation Administration and Pipeline and Hazardous Materials Administration.
     PRBA did oppose the U.S. DOT’s overbroad 2010 lithium battery rulemaking that would have required every smart phone, e-reader, notebook, tablet, power tool, and camera powered by a lithium ion battery and shipped by air to be offered as Class 9 dangerous goods. The DOT docket shows that approximately 95 percent of the commenters on the proposed rule, including the airlines, freight forwarders, medical device manufacturers, retailers, cellular phone manufacturers, electronics manufacturers, automobile manufacturers, foreign government agencies, U.S. government agencies and many others also opposed it. It also is worth mentioning that the U.S. DOT underestimated the economic impact of the rulemaking by over a billion dollars.      The fact that the U.S. DOT has not published a final rule almost four years after the original proposed rule was published is an indication the agency now realizes the original rulemaking was poorly conceived, not to mention wholly unenforceable.
     FlyingTypers’ point that consumers are not able to return devices with lithium batteries installed in full compliance with the applicable dangerous goods regulations is wrong. In fact, consumers are able to ship a single consumer electronic device provided the battery is installed in the device and does not exceed the 100 Wh exception limit (for Li ion batteries) or 2 g lithium metal limit (for Li metal batteries) stated in the regulations. The simplicity of this provision (which is part of the ICAO Technical Instructions that authorizes such shipments) is exactly why the Universal Postal Union requested the same authorization for shipments via the international post.
     We appreciate the opportunity to correct the mistakes in your recent articles on the lithium battery dangerous goods regulations and PRBA’s position. We hope any future articles on these topics will be presented in a more balanced and accurate light.

George A. Kerchner
Executive Director
PRBA - The Rechargeable Battery Association

Editor’s Note: Against the background of current rules and regulations governing the carriage of lithium batteries, we remain concerned that more is not being done to provide for safety when lithium batteries are being shipped.
     With the benefit of hindsight, we can agree that the use of “all measures” was probably an overstatement. We have removed it from the records that remain in our electronic archive.

     We pride ourselves on being ahead of the times—leaders of the pack, if you will—so when we saw popular art blog “My Modern Metropolis” pick up the series of ethereal sun and moon photos we ran just a few months ago, we were more than thrilled to have broken news in the art world!
     We’ve proven time and time again—it’s not just about air cargo here at FlyingTypers!
     The gorgeous photos of Sebastien Lebrigand inspired the musical playlist “Sun & Moon,” which we shared with our readers earlier this Summer.
     Enjoy the pictures.

     Listen to the music.
     “Believe it or not,” My Modern Met wrote, “these spectacular photographs are not digitally manipulated.
     “The series was an endeavor by photographer Sebastien Lebrigand, who set out this past summer to document airplanes as they flew past the sun and the moon.
     “With the naked eye, the huge planes are simply dark specs in the sky.
     “However, using a special astrograph telescope lens, Lebrigand was able to capture the impressive details of the massive machines set directly within nature.
     “The French photographer documented the moon at night, but found the sun to be a huge challenge since it is almost impossible to look directly at the blinding light.
     “However, with great patience and dedication to the project, he was able to capture a handful of amazing, out-of-this-world images.
     “When speaking about the experience, Lebrigand said, ‘The plane is so fast, it crosses the sun in a quarter of a second, so there was no time to lose. I couldn't move as I knew the plane was going to arrive very fast.
     ‘Suddenly I was like 'snap, snap!' And bingo, I'd got it in the bag—it was magnificent.’”
Flossie Arend

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