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   Vol. 13 No. 82  
Thursday October 2, 2014

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September By The Numbers

East-West air freight rates nudged up in August and remain far ahead of last year, with new product launches from major electronics manufacturers expected to keep the market buoyant through most of the fourth quarter.
     Illustrating the strength of the recovery in air freight pricing over the last 12 months, Drewry’s Air Freight Price Index, a weighted average of air freight rates across twenty-one East-West trades, rose 0.5 points last month to 102.9 points, some 6.2 points above the August 2013 reading.
     The September air freight sub-index of the Stifel Logistics Confidence Index also showed signs of an improving market, especially on key lanes out of Asia. It rose 2.9 points in September compared to August to reach 55.7, with the “expected situation” up 3.7 points to 58.4, and the “present situation” rising 2.1 points to 53.0.
     “By trade lane, results were mixed for the present situation with the U.S. lanes declining 2.8 from Europe and declining 0.1 to Europe,” said analysis from Transport Intelligence, which compiles the Index. “However, it was the Asia to Europe lane that drove much of the gain for the overall present situation, increasing 8.1 points to 59.6.”
     TI said market positivity is being boosted by the launch of Apple’s iPhone 6. Indeed, forwarders and airlines contacted by FlyingTypers privately confirm earlier rumors that Apple bought huge amounts of cargo space to prevent competitors from easily utilizing airfreight to launch their own new products. The positive outlook is also supported by the latest data for July and August.
     IATA said freight ton kilometers flown rose 5.8 percent year-on-year in July, representing accelerated growth from June when cargo demand grew at 2.4 percent. Global air cargo volumes surpassed their previous July peak recorded in 2010, as Asia Pacific airlines reported a 7.1 percent improvement compared to a year earlier. “The fortunes of the region’s carriers are tied to the strength of major economies such as China, Japan, and South Korea, which are expanding again after a slowdown at the start of the year,” said IATA.
     Airports Council International’s July figures for the Asia Pacific also proved strong as airports in the region recorded year-on-year growth of +6.8 percent. The top four airports in the region by throughput from January to July 2014 were Hong Kong (HKG, +6.7 percent), Shanghai Pudong (PVG, +8.3 percent), Seoul Incheon (ICN, +3.9 percent) and Tokyo Narita (NRT, +9.0 percent).
     Initial figures for August suggest the resurgence in Asia continues. After racking up double-digit gains for most of the year, Shanghai Pudong International Airport Cargo Terminal (PACTL) saw volumes increase by 23 percent in July and 22.1 percent in August. Overall throughput at Shanghai Pudong in August expanded by 12 percent to 272,200 tons, aided by a 20 percent increase in regional traffic.
     Guangzhou Baiyun Airport saw cargo throughput surge 14 percent last month to 125,000 tons, while Hong Kong International Airport also saw large gains in both July and August when cargo throughput increased 8.3 percent and 8.8 percent year-on-year to 370,000 tons and 366,000 tons, respectively.
     Growth in cargo throughput at HKIA in July and August was largely driven by transshipment cargo, which was up by more than a fifth in both months compared to a year earlier. Mainland China was a strong generator of growth over the two-month period, with throughput to/from North America and Southeast Asia also featuring strongly. On a rolling 12-month basis through August, HKIA’s cargo volume is now 5.7 percent higher than a year before.
     Analysts expect the market to remain healthy in the coming weeks. “Pricing is expected to stay high, by historical standards at least, through the final quarter as rising seasonal demand combined with tighter capacity conditions supports rates,” said a note in Drewry Sea & Air Shipper Insight.
     Cathy Roberson, senior analyst at Transport Intelligence, predicted further improvements in airfreight demand through the holiday season, not least in the U.S., where trucking is faced with its driver shortage/capacity issues and railways are struggling to keep up with demand.
     “Also, with the situation at the West Coast ports still unresolved, a good bit of cargo was moved in early Spring/Summer through fear of a possible strike in July,” she said. “The strike hasn’t occurred, but shippers are still wary. Inventory is going to need to be replenished and I think we’ll see the use of airfreight increase as well as East Coast ports playing a role.”
Sky King


 

Brussels Cargo Team
Brussels Airport Cargo team lines up for TIACA Incheon. From left to right Steven Polmans, Benny Vandenheuvel, Marc Bogaerts, Johan Leunen and Nathan De Valck.
ACF Opens And Brussels Sprouts

FlyingTypers’ last issue pointed out TIACA’s struggle to attract exhibitors, even from companies with representatives on the organization’s board of directors. In the interest of balance, we spoke to some of the companies that are supporting this year’s show. First up: Brussels Airport Company


BRU To ICN

     The initial thought is that there must be more than six degrees of separation between the political hub of the European Union and South Korea’s leading airport. In fact, the commonalities, at least in the skies, are many. It explains why Brussels Airport Company is one company that will be making the long trek to attend the 27th International Air Cargo Forum and Exhibition in Seoul over October 7-9.
     Johan Leunen, cargo marketing manager at BAC, said both Asiana Cargo and Korean Air Cargo (operated out of BRU and BAC) still see ACF as an important means of promotion. “South Korea is well represented at our airport,” he said. “Our attendance at TIACA’s Air Cargo Forum is in support of Asiana and Korean and their air cargo partners, as well as for promoting BRU to other Asian carriers as an efficient and flexible gateway into Western Europe.
TIACALogo     “We sincerely hope that other Asian carriers will find their way to BRU as well. When attracting new lanes and routes, approaching airlines and other local stakeholders go hand in hand.
     “Next to promoting our airport, we also would like to provide a platform to BRU cargo companies by offering them a convenient way to join us and to give them an opportunity to be present, too.”
     BAC has been investing heavily in new facilities and services in recent years and believes more Asian carriers could benefit from routing flights into BRU, which is now being marketed as “Brussels Airport – the heart of Europe.”
     “Location-wise, we are in the center of the most important area of that one big Euro market,” said Leunen. “We offer good facilities, smooth handling processes, and constructive and cooperative partners, such as customs. But most important is the warm heart and the passion we carry for our partners.
     “Together we look for solutions, efficiencies, opportunities, and new developments, and always keep an eye on the cost effectiveness for our partners. As key account managers of the cargo team, we want to make the difference and customer intimacy is our daily concern.”
     BRU, like many European airports and their airline partners, has not had the easiest of rides over the last few years, not least due to the general downturn in global air freight demand and the economic travails that have beset Europe. But this year volumes are on the rise, up more than 6 percent year-on-year over the first 8 months.
     “We expect these volumes to rise even further,” said Leunen. “Also, volumes have not been bad in the last two years. We do see a shift from full freighter to belly cargo and integrators, but that is less important for us. Our focus goes to facilitating cargo flows and volumes, and we aim for a flexible offer in capacity.
     “Shippers and forwarders need sufficient routes and destinations, and a mix of belly and main deck capacity in order to strengthen their presence in our region. This is our challenge and where we are seeing success and results.”
     He said one critical test facing European air freight operators and airports at the moment is the overcapacity, which is hurting carrier yields, especially for full cargo operators. “On top of that, European carriers face huge competition from Middle East carriers,” he added. “The cargo industry itself also faces a lot of challenges—some for a long time—such as further integration of the supply chain, e-freight, operational restrictions, etc.
     “As a partner of the industry, we share these challenges and work with the industry to overcome them.”
SkyKing


Chuckles For October 2, 2014

 

Nomita Kothari

     A veteran in the air cargo business, Nomita Kothari has seen it all, loading and unloading cargo in the blistering heat and pouring rain of Mumbai. Today, with more than 20-odd years of experience in the industry, she wants to continue having fun in the air cargo business.
     Nomita joined the industry when she was barely out of college. She was fascinated by planes and loved travelling. What could be better than working for an airline? she asked herself.
     She did not have to wait long. “I had just finished my education,” she said, “when I saw an advertisement that KLM Royal Dutch Airlines was looking to hire someone.” Her uncle, Sanjeev Talwar, then Cargo Manager for Air India, convinced the young lady to apply for the job. “Not knowing anything about cargo, I went ahead . . . and secured the job.”

Nomita093014

     It was then that she faced reality. The first few days must have been terrible. She recalled: “Little did I know then that cargo was not glamorous, nor was it swanky like the passenger division.” But the gutsy lady stuck with it. “It meant understanding kilos v/s pounds, pallets v/s containers, general cargo v/s perishables, and much more.” Perhaps she did not look forward to “going to the warehouse wearing high heels, perspiring while supervising the loading and unloading of cargo.” The part of her job that she liked was meeting Customs officials and customers.
     That was the beginning—almost 22 years ago—which she refers to as “a motivating journey,” where she learned “a great deal about business strategies, marketing activities, product specifications, complex rating structure, and the impact of economic development on the trade, plus much, much more.” Above all, she says she has learned about relationship management, business ethics, and trust.
     In January 1996, KLM promoted her as Manager, Customer Service – India, and after the merger with Air France, in May 2006, she was assigned to head the joint AF/KL Cargo, Customer Service organization. It was a challenging assignment and Nomita handled it deftly, integrating the people, processes, and procedures between the two organizations with offices spread across the country in Mumbai, Delhi, Bengaluru, Chennai, Kolkata, Jaipur, and Hyderabad.
     All along, the lady adapted herself to her colleagues—and almost all of them were males—to be in the industry that she has come to love. “I have never faced any adversity because I am a woman,” she said.
     “On the contrary, I have received support, guidance, and feedback. The people I have worked with, and continue working with, have been a positive influence in my life. The rich experience I have gained over the years has helped me develop my ‘people management skills’,” which she uses to coach, motivate, and develop the team she now leads as Business Development Manager at Sharaf Cargo. She joined the UAE-based company this January and hopes to give full flow to what she calls, “my forte: Customer Services.”
     The most exciting thing about the cargo industry is the rapid progress it is witnessing. “We are heading towards an e-platform... There is more happening: networks are expanding, joint ventures and alliances are coming in, there are new specialized products… it sure is a inspiring world out there,” she said. Today, she pointed out, customers are aware of what they want. “We must maintain a flexible attitude towards our customers’ requests and always focus on what our customers want and not what we think they need.”
     Was she still passionate about planes after looking at how to fill empty bellies for more than 20 years? Certainly, said the lady with a twinkle in her eyes. “Airplanes drew me to cargo” and she has no regrets. “There isn’t a day that goes by when I am not thankful for having found a place for myself in this evolving industry!”
Tirthankar Ghosh

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

Ramlila

   An artist wearing a mask of demon king Ravana waits to perform at Ramlila, a dramatic folk re-enactment based on the Hindu epic Ramayana as part of Navaratri, or the nine nights festival in Mumbai, India. Friday marks Dussehra, or Vijayadashami, the culmination of Durga Puja and Navaratri festivities.
   Happy Dussehra, Friday October 3, as we join the Hindu celebration of the victory of good over evil.

 

History Alive At ICN

Kimchee Chocolate   Incheon Airport is a nice, rather new place; aside from a standard travel experience, visitors can enjoy an in-depth look into Korean life and history at the Museum of Korean Culture (Concourse 4F center), the Traditional Culture Experience (Concourse 3F,Duty Free Area), or the Traditional Craft Gallery (Concourse 4F Transfer Area).
   One could very well go to the airport to learn about Korea without even visiting the country.
   If there is time, it’s worth a look into the airport Food Capital, which serves meals prepared with organically grown ingredients.
   Try and find the spicy and tasty Kimchi pancake.
   But be aware that Kimchi can be the gift of food that keeps on giving and sharing as you flyaway for that long flight home.
   The duty-free and packaged goods shops at the airport also sell a great variety of Korean treats, such as kimchi, rice wine, seaweed chocolate, spicy dried squid, and seaweed snacks.

 

Palestinian Elder

   A Palestinian man is seen during the preparation for the holiday of Eid al-Adha, or Feast of Sacrifice, in the neighborhood Shuja'iya.
   Muslims around the world will mark Eid al-Adha, one of the biggest holiday of the Islamic calendar. It commemorates the willingness of the prophet Ibrahim—or Abraham, as he is known in the Bible—to sacrifice his son in accordance with God's will, though in the end God provides him a sheep to sacrifice instead.


If You Missed Any Of The Previous 3 Issues Of FlyingTypers
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FT092314
VOL 13 No. 79
Schenkerfest 2014
ATC Jets Germany
Peak Less Sales Days 
Lufthansa Swipes Cargo
AFKLMP Ice Cool Green Container
Chuckles For September 23, 2014
RE: e-Ruckus As FIATA vs IATA
A Matter Of Language
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VOL 13 No. 80
Air Cargo News For September 25, 2014
Apple Success Lifts Air Cargo
Marilyn & Glam Of United Cargo
Chuckles For September 25, 2014
Saudia & Easy ECS
Quote Of The Week
Haupt Says GoodBye
Save The First Air Force One

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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