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    Vol. 13 No. 50                     THE AIR CARGO NEWS THOUGHT LEADER                          Tuesday June 10, 2014

 

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Glyn Hughes IATA Cargo

Glyn Hughes    Shakespeare wrote in Henry IV, “Uneasy lies the head that wears a crown.”
     IATA, which continues what can only be described as an obsession with former UK-based executives, has just announced Glyn Hughes (right) as Head of Cargo.
     With that posting, IATA has again designated to a key post an individual who once worked for either British Airways Cargo or a UK-based airline.
     While everybody agrees that the decision as to who to hire is indeed up to IATA, it is also fair to stand back a bit and survey the landscape.
     Glyn Hughes, formerly of Air Europe, replaces Des Vertannes, formerly of BA Cargo.
     Prior to Vertannes, Aleks Popovich served as IATA Head of Cargo, yet another executive from      British Airways Cargo, where he worked under the great Kevin Hatton in the mid 1990s.
     Aleks replaced Phil Sims, director of cargo at IATA from 2001-2005.
     Phil was also formerly with British Airways Cargo.
     Phil joined IATA in 1997 after Colin Mills left as director of cargo services.
     By now you might have guessed—Colin had also been with British Airways Cargo.

Aleks Popovich and Phil Sims


An IATA Obsession?

     When you look at the scope of it, there are a lot of air cargo executives in the world with great credentials—and they hail from almost every corner of the planet.
     Without casting aspersions upon anyone, we’re curious as to why IATA seems intent on repeatedly hiring executives from essentially the same gene pool.
     Is it accidental, coincidental, or possibly a study in risk aversion?
     We think the repetition says more about the internal workings and culture of IATA than about the cargo prowess of BA Cargo, with all due respect.
     Without a doubt, a stubborn succession of “known quantities,” shaped in the British Airways mold to top spots at IATA, seems to have been attractive to IATA management for quite a long period of time, and that view marches in lockstep toward the future.
     But we move on.

Another 48 Hours Was A Day In 1972

     Something else in the Glyn Hughes Head of Cargo press release last week jumped out at us.
     “Air cargo faces considerable challenges and we have an ambitious goal to improve the industry’s competitiveness through a cut in end-to-end shipping times of up to 48 hours,” proclaimed the IATA presser.
     Speaking of succession of cargo people coming from the same place, as Summer 2014 begins you can take a dip in the IATA pool of ideas, where déjà vu similarities abound—truly, what’s old is new again.
     In March 1972, IATA’s Cargo Automation Research Team (CART) was established and led by American Project Manager Lee Mitchell, delivering what became the blueprint for all cargo systems.
     In fact, CART enabled successive improvements in the quality of service.
     Ironically, one of the CART main objectives had been to “…reduce the terminal dwell time of air cargo at major airports to less than 24 hours [by 1976].” Another key CART goal was to “recommend guidelines for standardization and simplification of transport data and information exchange methods…”
     Did we miss something, or was 48 hours 24 hours 42 years ago?
     Since clearly the 24-hour idea did not fair so well in 1972, has IATA decided to double down the time line and see if that might work?

Who Is Glyn Hughes?

     The Glyn Hughes I know is a personable individual who has been with IATA for 22-plus years and has worked alongside all the directors of cargo named here.
     Glyn certainly knows all there is to know about CASS, and during the short four-year reign of Mr. Vertannes, Glyn was quite close to Des.
     But right now air cargo has just barely started to slowly recover from its worst slump since 9/11.
     It is fair to wonder what IATA expects from cargo and how important a role does cargo play in the larger IATA scheme of things.
     Among all of the individuals who have held the top spot at IATA Cargo, Vertannes was the first cargo head with the credentials of having headed up an airline’s cargo business—and he did that on two occasions, (Gulf Air and Etihad) directly prior to his move to Geneva.
     So now it falls to Glyn Hughes to stand up to some gigantic challenges, and we wish him well.
     No matter what anybody says or thinks, naming Hughes head of cargo in critical times will speak volumes about IATA down the road.
     The IATA Cargo Committee reaction might be an early indication—primus inter pares—but we might never know exactly how that group feels.
     Right now, the top priority amongst cargo executives is capturing business, keeping airplanes flying full of cargo either above or below deck, and remaining flexible at all times.
Ted Braun

 

Karachi Army Troops

   Pakistan Army troops have things under control at Karachi Jinnah International Airport following an attack by gunmen disguised as police guards who stormed the cargo terminal Sunday night, June 8, 2014.
   The Karachi air cargo transfer handling facility is now in ruins, reportedly with millions of dollars of destroyed cargo, as a result of the attack.
   Twenty-seven people were killed and hundreds of other hurt when the suicide terrorists blew themselves up in the cargo area. Shippers are calling for new security safeguards whilst asking for immediate relief.
   According to Pakistan Observer, President of the Karachi Electronic Dealers Association (KEDA) Muhammad Idrees urged the government to announce compensation, saying:
   “The business community has suffered severe losses of millions of rupees due to the terrorists strike in the cargo area of Karachi airport, but no announcement has been made by the government to compensate losses,” Idrees said.
   “In order to avoid such incidents in the future, the government must rely on digital security systems, rather than depending on manpower, and install scanners at all entry and exit points of the City of Karachi in order to stop the influx of explosives in the financial hub of Pakistan,” he added.
Geoffrey



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Robocup Brazil in July

Just after the World Cup in Brazil next month, right when the dog days of summer descend upon us, the RoboCup occurs from July 19-July 25 in Joaõ Pessoa, Brazil.

   In a country where skill, fitness, the thrill of victory, and the agony of defeat have made headlines, a 180-degree turn, or “chandelle” in aviation terms, will take place.
   Robots of all stripes—mostly developed by smart college types from various world universities—will travel to Brazil for a competition; a clear indication that we are moving ever closer to the union with artificial intelligence Stanley Kubrick predicted in the classic movie 2001:A Space Odyssey (explored even further in the Steven Spielberg-helmed AI Artificial Intelligence, originally developed by Kubrick before his death).
   Most if not all of these robots are powered by Lithium batteries, and since these batteries have been custom made for these experimental robots and subsequently in a small number, our guess is that they will not have been tested in accordance with part III, subsection 38.3 of the UN Manual of Tests and Criteria.

Website Gives No Clue

   While the RoboCup 2014 website features a lot of useful information for participating teams—from hotel accommodations and cargo shipping of their robots—nothing is said about the very particular requirements applicable to the transport of untested Lithium batteries, which require competent authority approval from the state of departure, the state of aircraft registration, and (more often than not) the state of transshipment and destination as well.
   Whether these requirements would make events like the RoboCup unfeasible is not the point—it is up to the stakeholders involved to provide internationally recognized exemptions for such purposes.
Everyone agrees that untested batteries pose a big risk; nevertheless, it seems that most teams participating in the RoboCup event will transport their batteries by carry-on baggage, which clearly is not covered by subsection 2.3 of the IATA Dangerous Goods Regulations.

Airport Security To The Rescue?

   At the IATA DGB meeting in Los Angeles during the March 2014 IATA WCS, it was decided greater focus would be placed on Lithium batteries carried by passengers.
   So maybe all these Robocup batteries will end up alongside the water bottles at an airport near you?

Regulatory Changes Lithium

   FT recently covered the regulatory changes pertinent to the transport of Lithium batteries.
   While we were pleased to see that our contributions have sparked some interest, it may be noteworthy that this interest was, by and large, limited to the ‘usual suspects’—mostly airline and dangerous goods professionals.
   While yours truly and PRBA (who submitted a number of letters to FT in order to make their opinion heard) have agreed to disagree, there is some doubt as to whether PRBA does provide a complete picture for the shippers of these commodities.
   The fact is that the majority of small- and large-sized corporate shippers are not aware of the regulatory requirements applicable to the transport of Lithium batteries, no matter whether of the Li-Ion or the Li-Metal type and no matter whether shipped as such, packed with, or installed in equipment.

Here Is An Example

   We are not talking robots here, but rather everyday, lithium-powered laptops and workstation computers.
   Many laptops are equipped with both battery types—a Lithium-metal cell to ensure the computer’s settings in its BIOS (Basic Input–Output System) are preserved even when the power is disconnected, and lithium-ion, a rechargeable battery that functions as the primary power source.
   A workstation computer system has only the small metal coin cell.
   Batteries of the “excepted” type falling under part II of either IATA Packing instruction 967 or 970 do not require marking and labeling when no more than four cells or two batteries are installed in equipment, and where the so-called ‘general requirements’ have been met.
   General requirements means that any and all batteries have undergone tests in accordance with Part III, subsection 38.3 of the UN Manual of Tests and Criteria.
   Now, as clearly stated in FT’s previous coverage, the stakeholders are working together to foster a safer environment for the transport of lithium batteries.
   For most batteries, a SDS (Safety Data Sheet) or MSDS (Material Safety Data Sheet) does exist.
   However, a significant number of batteries are incorrectly labeled, carrying words like:
   “Our lithium batteries are not subject to regulatory requirements” or some such language printed right on the battery, in plain sight.
   Here’s an example of how things can get out of hand based on lack of education concerning lithium batteries: a shipper of five computer workstations tells us that they were recently informed by the manufacturer (a large, U.S.-based IT outfit) that the “small coin cells contained in the workstation would not require a test certificate” (or certificate of conformity, which may be provided in lieu of the complete and often hard-to-read test report).
   Both IATA and the national competent authority from which regulatory guidance was sought disagreed on the matter.
   The result was the shipping of these workstations was stopped cold for more than two weeks, seriously tarnishing the relationship between the service provider preparing the equipment for shipping, who insisted at least a ‘certificate of conformity’ was required, and the shipper, who had been told by the IT manufacturer no such requirement existed.


And Now For Something Different

   With regards to Monty Python, another aspect of this issue is the warehouse staff and packers, who in many cases earn minimum salary, for manual labor, with minimal training.
   That situation is likely to remain (at least the training part), as lobbying actions of PRBA and NEMA have allowed shippers of “excepted” batteries to not require handlers to partake in formal lithium batteries handling training.
   This situation exists despite ICAO, IATA, and other stakeholders clearly identifying training as a key element to the safe shipping of dangerous goods.
   On the bright side, it must be noted that most of shippers either include fully regulated batteries (which do require formal training) or have decided to provide their own training anyway.
That’s the good news.
   Still, questions arise with respect to the efficiency of training, since more often than not training materials appear in a thick technical language not fully understood by the packer or warehouse staff.


Outsourcing Challenges

   Suppose that you are outsourcing your packing duties, which these days is common practice in some quarters.
   How do you communicate to an outsourced packing firm the need for a drop test and stacking test, and batteries with a certificate of conformity?
   And if you have shipped back any gadget with lithium batteries installed, were instructions regarding the proper closure of the package and its preparation in accordance with the Dangerous Goods Regulations provided to you?
   Issues also arise when, for one reason or another, the shipper is not focused on regulatory requirements as an issue of immediate attention.
   But maybe that’s another story.
Jens



Flying Video At CNSPeter O'Neill & Anne Marie MacCarthy
Peter O'Neill, Director Cargo Aer Lingus & Anne Marie MacCarthy, Global Sales Manager Aer Lingus Cargo.
Irish Eyes Bigger U.S. Service . . . Here Anne Marie & Peter tell all about it.
Richard Malkin
Click Here To Read Intro
Click Here To Read Part I
Click Here To Read Part II
Click Here To Read Part III

 

United Airlines 787

Richard Ferris of Allegis   In case you missed it, United Cargo plugged Chengdu, China, into its ever-expanding global service network with thrice-weekly service from its hub in San Francisco.
   SFO is an interesting story. Not only has UA long enjoyed preeminence from that gateway, but a direct link can also be drawn back to the beginnings of TransPac air service, when Pan American Airways opened up the U.S.A. to Asia from San Francisco 81 years ago via the famous China Clipper.
   UA acquired Pan Am's Pacific Division—one of the greatest takeovers ever—in 1985. It made the boss at UA who led the buyout, Richard Ferris, (left) an instant legend.
   Mr. Ferris had less good fortune with labor at the carrier and when he changed the name of the parent company UAL Corp. to Allegis. As fast as Ferris departed the company in 1987, the company reverted back to UAL Corp.
   But what goes around comes around.
   From the same place that Pan Am flew the Martin M130, an advanced, four-engine, state-of-the-art flying boat in 1935, today UA takes off in the "airplane of tomorrow," the B787.
   "United Cargo begins nonstop service between our San Francisco hub (SFO) and Chengdu Shuangliu International Airport in Chengdu, China (CTU),” the carrier said, adding, " providing more nonstop trans-Pacific flights from SFO than any other U.S. carrier offers from any U.S. airport.
   "Today, United operates the largest hub on the U.S. West Coast at SFO with nearly 300 daily flight departures, including 260 daily departures to 70 domestic U.S. cities, as well as an extensive trucking network for transferring wide body shipments.”
More: www.unitedcargo.com.



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