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   Vol. 13 No. 77  
Tuesday September 16, 2014

 

Turkish Cargo Ad

Peak Into iPhone

Sitting it out . . . Tomoaki Watanabe, 22, right, and Shion Tamura, 20, center, chat as they camp out at the front end of a line outside an Apple Store to buy Apple's new mobile phones at Tokyo's Ginza shopping district in Tokyo last week.

With September “peak season” yet to materialize for many, here comes some exciting new iPhone products, and with them the hope that last week’s Apple introductions will provide a jump-start to air cargo demand.
     New Apple products have sparked business more than a few times, so why not one more September “phone home” for air cargo?


Wake Up Call


     Part of the reason air cargo can be hopeful is that Apple pulls out all the stops to keep iPhone demand and sales meteoric—from the moment it hits world markets until the end of the holiday season.
     A well-known adage we’ve adapted for adapted may indeed be a propos:
     “A rising wind lifts all airplanes,” as iPhone sales went off the charts and made headlines this past weekend.
     Customers are anticipating a wait of 3-4 weeks for the iPhone 6+, even before the new devices go on sale this upcoming Thursday in USA.
     For the broader air cargo market, a resurgent product sector can be viewed as a wake-up call for all kinds of airfreight-able commodities; at least; that is the hope.
     AT&T's chief executive of mobile and business, Ralph de la Vega, told investors at a conference in New York that iPhone 6 orders are setting new records.
     “It is such a great thing to wake up in the morning to know that you already have hundreds of thousands of orders, before you even have a cup of coffee," said the executive.


Gold iPhoneAll That Glitters

     In Dubai, where the impossible can occur if you wait a minute, there is some high end buying hysteria as “gold versions” of the iPhone 6 can be had.
     A 24-carat gold-plated Limited Edition iPhone 6 in either yellow and rose gold, created by Gold & Co. in London, goes on sale this week at Dubai Mall’s Arab and The Collector’s Palace for a pithy AED,18,000 – AED 21,000 ($4,905-$5,722).
Geoffrey

 

Delta Cargo Women Execute


We sat down with three women executives to catch up on the Delta flight plan as part of FlyingTypers’ exclusive and recurring Women in Air Cargo series.

Lisa Wallace     Director Revenue Management & Alliances Xianqin (Lisa) Wallace commands a staff of 40 people and reports directly to Vice President Cargo Commercial Ray Curtis. She joined Delta in October 2013 from UPS, where she was Marketing Director at UPS Capital, Asia region.
     “I see positive change and an alignment with the passenger side and airport customer service toward a greater Delta brand. It strengthens our customer relationships and enhances the Delta service reliability. I see opportunities to grow together in this global business.”
     Commenting on her previous experience, Lisa mentioned that there are gaps technology-wise, something that is not unique to Delta.
     “It’s an opportunity to create new system functionality. Ultimately, everything we do is to focus on satisfying customer expectations and striving to provide a compelling reason for the customer to use Delta cargo.”
     With 25 years of industry experience, Lisa is driving internal efficiencies in the face of changing market dynamics and keeping at the forefront of what the challenges are for the customers. Exercising her responsibilities regarding alliances is again viewed through the lens of the customer perspective in order to enable them to gain market access and “to provide reliable capacity and service consistency.
     “The feedback from customers indicates they value our alliances and the cooperation it fosters.”
     In terms of moving forward, additional steps are being taken to promote and offer collocation and IT integration. Coming on the heels of the Delta Air Line corporate leadership conference, Lisa is enthusiastic about its tenets—treating people with respect and dignity. “We have the best employees and the best team—I am proud to be part of the Delta family.”
    
Shahron Poindexter     Sharon Poindexter is Director Strategic Innovation & Technology, a very recent change of department title from eCommerce. Sharon is a newcomer to the airline and cargo industry, with an extensive track record of managing and implementing B2B and B2C e-commerce business models. “I love the airlines, Delta, and cargo!”
     She is determined to “use technology to improve the customer’s ability to do business with Delta.” Recognizing that the utilization of technology in the air cargo business is lagging, Sharon is working on ways to better leverage and build technology into the business.
     Her focus is on identifying what Delta can do to make it easier to do business, shorten the timeframe of interaction and the effort required, and—it goes without saying—use far less paper.
     In this context, Sharon says, “We need to look at what’s available and repurpose what we already have.” Asked about the impressions she has from the freight forwarders’ commitment to technology, she cites the example of K+N, which has rolled out an online booking tool for its shippers/customers.
     “This shows that the forwarders understand and make use of technology; we need to follow a multi-channel approach for various size forwarders. The challenge is how to make new technology affordable to all the players, because the cost of technology is an issue.”
     The IT team is based in Atlanta as well as in Minneapolis, with Unisys as its IT partner. “It’s a relationship, and we all need to express and support our vision and work toward a common goal.”
     In terms of e-AWB, Sharon indicates that Delta’s target is 70 percent for domestic shipments and 40 percent for international cargo. “Currently we stand at 72 percent for domestic and 30 percent for international, and we will hit our goal by the end of this year.
     “It’s not just the technology. The processes are key. Our challenges are to align the priorities. We push to do everything better, and do more for the customers.”

Linda Biere     The buck literally stops with Director Cargo Finance Linda Biere.
     In a wave of relatively new women in cargo, Linda has been working for Delta Air Lines for nine years, having joined cargo one year ago. Working with a team of 30 people, Linda handles budgeting, forecasting, finance, revenue reporting and market analysis. Her IT arsenal includes SAP, used by Delta corporate finance, and Cognos, a business intelligence and financial performance application.
     “It’s a powerful reporting engine that helps us achieve competitive advantage and optimize revenue. We analyze daily production and performance.”
     This approach enables the finance team to start with the bigger picture, look for developing trends, and then compile and analyze more granular data.
     Linda especially values the synergy on the operations side, and the leveraging of best practices on the cargo side. On a high note from the previous days’ leadership conference, Linda observed that “people are invigorated and enthusiastic,” having responded very well to the motivational nature of the event.

Ray Curtis     Ray Curtis presides over this successful and highly motivated team, with Delta recently rated #1 airline in the U.S. in on-time performance.
     “We are in the business of time, while also remaining lean, efficient and green [environmentally speaking].” Cargo had a strong July with a bumper crop of cherries, carrying more than one million kilos to Japan, China, South Korea, and Europe.
     “The Asia market is more stable. We are achieving and surpassing our targets for cost—the fuel from our own refinery is helping—and there will be additional operating capacity forthcoming to move oil for Delta.”
     Recent organizational changes are also bearing fruit. “We have a much closer working relationship among organizations, clearly evident even within this short 60 day period [since it was announced].”
 Steve Sear     The just concluded corporate leadership conference included a cargo leadership meeting and the opportunity to meet the executives for the first time—Steve Sear, (pictured right) senior vice president Global Sales, and Bill Lentsch, senior vice president Airport Customer Service. A surprise star guest at the conference was Sir Richard Branson (whose Virgin Atlantic airline is a Joint Venture partner) who addressed the subject of brand.
     “It’s all about executing on our goals and the Delta brand,” remarks Ray. Delta now handles Virgin cargo along the entire eastern seaboard. “We’re moving west, bringing real value to our customers and introducing a new brand to the market.”
     Delta will begin operating one of two daily Heathrow-Los Angeles flights currently operated by Virgin Atlantic, a new Delta service and its first nonstop flight between Los Angeles and London Heathrow, while Virgin Atlantic will begin operating one of Delta's three daily flights between Heathrow and Atlanta.
     “We will be attending the ACF 2014 in Seoul, which is an opportunity to also meet our partners China Southern and China Eastern. We now have Eric WilsonEric Wilson (pictured left) as Director Cargo Sales for Asia, based in Tokyo since January; he was previously General Manager Strategic Partner Programs in Atlanta and has connectivity into the environment. He is well positioned to promote the Delta culture.
     “My message has been: let’s use less paper, rather than paperless.” It seems the initial all-encompassing, complex, and over-ambitious IATA e-freight initiative—covering 20 documents—stands a better and more realistic chance of being implemented when limited to a half-dozen airline specific documents.
     Delta will conduct its annual partnership forum in September, to be held in Los Angeles and Seattle.
     “It will be an opportunity to present a different offering on the West Coast than what was previously the case, based on customer feedback and focus.”
     “We are nearing the planning season and we are looking to get input and guidance for demand based on what the forwarders are getting from their shippers.”
Ted Braun/Flossie

Alongside Women
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Tell the industry about a female at any level that you know, or have known about in air cargo. Write a short essay about what that woman means to air cargo. Pictures are welcome.
To send the story click here.
Pruthi header
Gitika A. Pruthi
Inspiring Change
Flossie Arend
Karen Reddington FedEx Singapore South Pacific
Karen Reddington

Carmen Taylor

 

Saudia Cargo Ad


JAL Plane In Manila
   Long shot of Manila as a Japan Airlines (JAL) plane flies over burnt houses following a fire in Pasay City yesterday September 15, 2014 near Ninoy Aquino International Airport that left more than one hundred families homeless.
   No cause of the fire, and thankfully no deaths or injuries have been immediately reported.

Juha JarvinenCargo Tops AY

   
    The way it ought to be.
    The really good news is Juha Järvinen will remain as Managing Director of Finnair Cargo.
    Järvinen has been named Chief Commercial Officer at Finnair, an airline that represents the standard of the business.
    Finnair CEO Pekka Vauramo said, “I warmly welcome Juha to the Executive Board and to head the Commercial division. During the last couple of years he has successfully renewed Finnair Cargo's operations and strategy.”
    Järvinen comes with a background of 14 years in passenger sales, commercial planning, and ground handling operations.
   Onnea!
 


Chuckles For September 16, 2014

 

Orange Is The New BenefitAfter the welter of upbeat air cargo assessments and stats that have been pouring forth from Asia in recent months, Peter Orange, Regional Manager, Freight Sales, for the Asia Pacific and Indian Subcontinent at leading logistics player GAC, is rather more sanguine on the forward outlook for the rest of this year.
     But unlike many of his peers who see threats to demand from cloud and 3D technologies, he believes advances in technology can be of benefit to the air freight sector and a driver of demand.
     Orange said that so far in 2014, demand out of Asia had improved but insisted many markets still remained soft, in keeping with the start of the year when there was no spike in uplift volumes prior to Chinese New Year.
     “As we are now heading into a holiday period in China we are not seeing any significant rises in demand,” he said. “In fact, we are expecting the cancellation of freighter services to and from China and Hong Kong.
     “We see the peak season as being soft this year with perhaps some minor spikes, but it will not be the same as the pre-2009 days. Companies are becoming more conscious of the costs of their supply chains and have switched to better forecasting and planning.
     “This is true with a number of our clients and hence, we are seeing a drop in both unplanned and planned airfreight movements particularly to North America this year.”
     GAC has seen some changes in origin sourcing and this has been reflected in carrier strategy.      However, Orange said the more traditional airfreight origins and hubs like Hong Kong remained strong players.
     “In recent times, we have witnessed the rise and fall of a number of start-up and joint venture cargo airlines,” he added.
     “Demand from Taiwan has definitely shifted, with the movement of manufacturing and supply to Mainland China.”
GAC Flag     Orange was also unusually downbeat on inbound traffic demand to China, a trade most of those in the industry contacted by FlyingTypers have been positive about this year. “Within the manufacturing sector, our customers are turning to more local sourcing of both raw materials and components in China,” he said. “Hence, we expect inbound demand to reduce in the medium to longer term.”
     The near- and re-shoring strategies of some OEMs was also reducing demand out of China and other parts of Asia as manufacturers shifted the point of manufacturing closer to customers.
     “Although this is driven in part by environmental demands, another significant factor is the instability in the supply chain resulting from costs, which include fuel and security surcharges, cancellation of services and in the case of ocean freight, ‘slow steaming’ to save fuel costs,” he explained.
     “Even though ‘slow steaming’ adds to transit times by up to 20-25% for shipments from Asia to Europe, these commodities cannot tolerate the sustained cost of airfreight services.
     “Although the demand out of China is expected to soften slightly in the medium term, it will continue to be the envy of many other countries.”
     Orange also went against the industry flow when asked about the ‘miniaturization’ of cargo, and the use of Cloud IT systems and 3D Technology, all of which he claimed were not having a bearish impact on air freight demand out of Asia.
     “The demand for new gadgets is growing at an exponential rate, and when new gadgets and smart phones are released, the volumes that are being shipped globally continues to increase,” he argued.
     “There is also an increasing demand in newer and developing markets for high-end luxury items and other consumables, and this will continue to drive the demand for air cargo services.
     “High-end food and consumables such as meats, dairy products and wine and spirits are of high value and have to be shipped via air freight.
     “We are of the view that technology within the industry is in ‘catch up mode’, as forwarders and airlines try to integrate their systems to provide greater visibility to the customers.”
SkyKing


Smell The Roses
   “Eggheads have more fun because smart is the new hip!” reads the headline.
   “There's so much to be said for living a life of the mind.
   “A party is constantly happening in your own head, no need to stand for hours in queues only to defer to autocratic bouncers, there are few if any hang-overs, and the imaginary company one keeps—well, it ranges from mad geniuses to creative rogues, two categories that often overlap.”
   We have loved Berlin ever since our first visit there, and our feeling is in no small measure the result of the youth and vibrancy that imbues the city and keeps it exciting.
   We keep in touch with the Berlin art scene by reading Sugarhigh, an e-zine that captures the pulse of Berlin with amazing regularity and some great writing.
   Today it is easy to think that your inbox is too full of mail to add one more address.
   But we encourage you, dear reader, to dump the junk and try to make time to smell the roses, or in this case, indulge your literary sweet tooth.
   Knowing something about the cities we serve is good business, wherever we are.
   Here is a link.

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Publisher-Geoffrey Arend • Managing Editor-Flossie Arend • Associate Publisher/European Bureau Chief-Ted Braun
Film Editor-Ralph Arend • Special Assignments-Sabiha Arend, Emily Arend • Advertising Sales-Judy Miller

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