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   Vol. 13 No. 83  
Monday October 6, 2014


Lufthansa Cargo Express Ad

 

Boston Puts Cool Chain On Ice

     In case you missed it, last week included one of the more important conferences this year in air cargo: the IQPC GDP and Temperature Management Logistics Global Forum, held September 29-October 03, 2014, at the John B. Hynes Veterans Memorial Convention Center in Boston, Massachusetts.
     The venue for the 12th annual edition of this gathering was filled with people who not only take the Cold Chain seriously, but also in some cases guide activities that have elevated this growing segment of air cargo into high art.
AA Cold Chain Group  L to R: Kris Hembree, UTI, Jim Bacon, Grifols, Inc.,Tom Grubb, American Airlines Cargo.


    American Airlines Cargo continued their industry thought leadership with a session at this year’s event in Boston.
     AA Cargo has Cold Chain topics and reality in plain sight with an expanding menu of services aimed at bringing perishables up where they belong.
     “Cold Chain logistics exemplify the critical need for joint collaboration by all stakeholders in developing transportation solutions that will protect delicate pharmaceutical and healthcare products,” said Tom Grubb, manager Cold Chain Strategy at American Cargo.
     “Given the ultimate objective of patient well-being—by insuring medicines remain safe and effective as they move through the supply chain—it is crucial that all stakeholders work together toward this goal,” he said.


Session Underway

     Although there are many stakeholders in the supply chain, American’s session focused on the relationship between the pharmaceutical manufacturer, the freight forwarder, and the air carrier.
     “The presentation was a best practices case-study to demonstrate how stakeholders should work together for success,” Tom Grubb said.
     Perspectives reflected in the session were presented by: Pharmaceutical Manufacturer Jim Bacon, Grifols Inc.; Freight Forwarder Kris Hembree, UTi; and Air Carrier Tom Grubb, American Airlines Cargo.


Challenges & Solutions

     The key challenge was air carriage of material from the U.S. to Europe while maintaining a deep frozen temperature state of the product.
     “Temperature maintenance for these shipments is critical and must not fluctuate otherwise it will cause the material to be ruined.
     “Better solutions for proper management of cold chain are developed through proactive communication and information sharing. “This includes thorough understanding of product requirements, identification and implementation of best practices, creation of detailed SOPs, and insuring each participant’s complete understanding of the process.
     “A key differentiator during development of the solution was the use of a ‘Mock Shipment’ call.
     “These calls are designed to bring all stakeholders together to ‘walk through a shipment’ from start to finish in order to make sure each participant fully understands the process itself and their roles within the process.
     “This enables for mapping out of the procedures, identification of weak points, and implementation of any needed improvements, provision of work instructions for all parties, and clear establishment of communication/escalation channels for alert notifications during the shipment,” Mr. Grubb concluded.
     With the other key differentiator for the success of this program being Trilateral Process Development, each stakeholder, by bringing their unique perspectives to the table, jointly developed a solution that resulted in successful implementation and execution.
     Tom Grubb is manager of Cold Chain Strategy for American Airlines Cargo and is responsible for leading the airline’s global time and temperature-sensitive logistics services.
     A 23-year veteran of American’s Cargo division, Grubb previously served in Operations as Manager of Customer Service Strategy, where he was instrumental in the development of ExpediteTC, American’s active and passive cold chain services. Prior to his role in operations, he served in other management roles including Global Accounts Sales, Capacity and Pricing Management and Information Systems development. During his tenure with the airline, he has implemented strategic sales initiatives and operational solutions for the carrier’s products and services portfolios.
     Grubb is currently a member of the IATA Time and Temperature Task Force (TTTF).


Teamwork Pays Off

      By working together, the product arrived at the destination facility:
     On Time: Handled properly, 100 percent flown as booked!
     On Temperature: 100 percent complete product integrity!
     On Target: Robust, clearly defined procedures lead to a repeatable process.
     “A repeatable process provides for consistent handling,” Mr. Grubb points out. “Consistency in handling allows for reliability and results in product safety and quality.
     “We found the right chemistry,” Tom Grubb said smiling.
Geoffrey


 

Garuda Feeling SkyTeam Cargo
Safety First . . . A Garuda Indonesia A-330 gets the once over at the Garuda maintenance facility at Soekarno-Hatta International Airport in Jakarta, Indonesia.

 Spreading the word: Truck ads proclaim, “City to City” services via partner Cargo Service Center (CSC) to a growing number of destinations across Indonesia.

    Ask anybody from SkyTeam Cargo and Garuda International Airlines Cargo what ACF means to them, and the quick answer would have to be for this week at least, almost everything.
     Upcoming on Wednesday October 8 at 1400 ACF provides the venue for sealing the deal at a MOU signing followed by a celebratory luncheon buffet in the big COEX Exhibition Hall where ACF 2014 is taking place.
     Garuda Cargo joins SkyTeam Cargo and something good will surely come from that.
Rajendra Kartawiria      Garuda Cargo has shown significant growth in recent years and has become a market leader.
     Right now there is no sign of let up either.
     “ This is our bold move to expand the network and our brand,” Rajendra Kartawiria, Vice President Garuda Cargo told FT.
     “Now our business colleagues and also new customers of Garuda Cargo can connect worldwide via routes that are served by the members of SkyTeam Cargo,” he said.
     Garuda Cargo numbers have been positive.
     In 2013 the carrier moved 269,033 tons, a 15.98% business spike as compared to 2012.
Geoffrey


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Brittin TIACA Seoul Man

Flying Typers caught up with TIACA Secretary General Doug Brittin as the 27th International Air Cargo Forum and Exhibition takes off this week in Seoul, South Korea, October 7-9.
Mr. Britton was bullish about air markets and regarding delegates’ experiences at ACF 2014.


FlyingTypers:  How would you describe air cargo markets this year—are you optimistic that recent signs of recovery are here to stay?
Brittin:  The International Monetary Fund forecasts global GDP growth of 3.6 percent in 2014—up from 2.9 percent in 2013—so the signs so far are positive. Let’s hope that a good part of this also translates into steady growth in our industry.

FlyingTypers:  It has been quite a long downturn for air freight, irrespective of the more general economic growth stats. Do you think the industry can emerge stronger and/or more efficient from this painful period?
Brittin:  An economic downturn often acts as a great catalyst for businesses. They have to become faster and sharper at finding efficiencies; they have to look for new solutions to maintain their share of a declining market; and they have to stay very close to their customers. More often than not, they emerge from this period stronger and more innovative than before. That’s exactly what I expect to see happen to the air cargo industry as we work together for a brighter future.

FlyingTypers:  How are supply chain planning strategies—such as near-shoring, new technological trends such as the ‘miniaturization’ of cargo, and the use of Cloud IT systems and 3D Technology—affecting your long-term view of air freight demand on the key lanes to Europe, and U.S. from Asia?
Brittin:  Modal shift as well as miniaturization and on- and near-shoring are all issues for our industry, but trends come in cycles and also move on. The push before smartphones appeared was for increasingly small devices. Now the latest iPhone is bigger than the model before. The speed of product development means that there are peak demands as soon as a new piece of technology is launched.
     3D printing is here already, but most people don’t see it as a threat yet. It may change the demand for air cargo in the long term, but it will take time. What is important is that we work together as an industry to deliver an efficient service and reduced transit times. Collaboration has never been more important and the ACF is a strong platform for us to develop new ways to work together.

FlyingTypers:  Why was Seoul in South Korea chosen to host ACF 2014?
Brittin:  TIACA events take place all over the world, reflecting the global nature of the organization.      Boeing’s Air Cargo Forecast shows Asia has the largest share of the market in total freight traffic and will continue to lead industry growth through to 2034. Our hosts, Seoul’s Incheon Airport, are the world’s fifth largest by cargo volume and they are planning some interesting expansion as well as pioneering e-freight ideas.

FlyingTypers:  What is the process TIACA employs to make the final decision on location?
Brittin:  The ACF site selection process starts four years out from a show, with a delegation of the Board evaluating offers from airports or airlines proposing to host. These are evaluated according to a fixed set of criteria such as reachability, available exhibition and conference facilities, hotels etc.
     After pre-selection, the committee visits the potential host country and the facilities are inspected on site using the same criteria. The host and local industry’s commitment to support the forum is important. Once a cost picture is established, the Events Committee makes a recommendation to the entire Board, who take the final decision.
     The process starts four years out to ensure we have a good selection when booking the space. For this ACF, the site visit took place in October 2009 and the decision was taken early in 2010.
     Seoul offered a comprehensive package including strong support from major Korean Shippers, whose CEOs were all present and met with the selection committee. Incheon set up a committee in collaboration with the government, the Korea International Trade Association (KITA), the Korean International Freight Forwarders Association (KIFFA), and the Korea Integrated Logistics Association to prepare for ACF.

TIACALogoFlyingTypers:  What are some of the highlights of ACF 2014?
Brittin:  This ACF promises to be our most comprehensive yet. Keynote addresses by ICAO Secretary General Raymond Benjamin, WCO Secretary General Kunio Mikuriya, and Transportation Security Administration (TSA) US Department Homeland Security Administrator John S. Pistole will provide a full agenda, which will be followed by interactive workshops and panel discussions covering the important issues affecting us all. It is a unique opportunity to hear and learn from industry leaders as well as legislators from across the globe.
     We are also privileged to have fantastic support from our colleagues in Korea who will bring their insight into the Asian market and we will hear from Suh Seoung-Hwan, the Korean Minister of Land Infrastructure and Transport.

FlyingTypers:  What else is happening at ACF 2014?
Brittin:  TIACA is committed to finding, nurturing, and developing the next generation of industry leaders and we know it is key for our members to identify and recruit talent. The ACF will jointly host the Future Air Cargo Executive Summit (FACES) with IATA, which was developed to provide aspiring air cargo leaders with the opportunity to grow professionally and give industry leaders the chance to foster the leadership needed to succeed in the 21st century and beyond. The scheme sits perfectly with TIACA’s Professional Development Workshop initiative launched this year. It’s another exciting reason to visit ACF.

FlyingTypers:  Are you expecting any major decision or announcements at the show that will affect air cargo stakeholders?
Brittin:  We expect visitors will seize the opportunity to network and find new business opportunities—networking is a cornerstone of our TIACA mission. There will also be addresses by key regulators on real time issues. The workshops are deliberatively interactive, involving industry leaders and regulators so that we can tangibly move the debate on. TIACA will also be hosting a press conference.

FlyingTypers:  Can you give any insight into how many people are attending or exhibiting, and how this compares to the 26th ACF? For example, are you expecting a lot of walk-in visitors?
Brittin:  Moving the ACF around the globe means that each event is unique and benefits from a strong representation of visitors from the host community. We are looking forward to welcoming thousands of our colleagues at the show next month—just as we did in Atlanta—including many from the Korean shipper community. And we have over 150 exhibitors attending to make the most of this opportunity.
SkyKing



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Chuckles For October 6, 2014

Aramex Lights Up ACF

Safwan Tannir     Expansion into the Asia Pacific is just one of a number of reasons why global logistics provider Aramex is exhibiting at ACF 2014, according to Chief Freight Officer Safwan Tannir.

     “Aramex has been exhibiting at ACF for a number of years now and we see this show as a major catalyst for international business,” he said. “We come here to meet other industry players, from partner airlines to suppliers and other forwarders.
     “We look at each exhibition as an international forum for promoting business and there will surely be a focus on the suppliers from the region where the show is taking place, this year being in Asia.”
     Aramex delegates were, he said, intent on attending a number of interesting workshops at this hosting of ACF. “Those discussing security and technology are very important to Aramex,” he explained. “Aramex prides itself on its technology. We apply the latest technologies coupled with local expertise and industry knowledge to provide a variety of services to our customers.
     “Security is vital and everyone’s concern, so we look forward to attending workshops for insights on the latest developments in that sphere.”
     Aramex was originally established as an express operator back in 1982, but has rapidly grown to offer the full range of global logistics services. In 1997 it became the first Arab-based international company to trade its shares on the NASDAQ.
     In Asia, Aramex now offers air freight coverage across Asia either through its own operations in the main countries like China, India, Sri Lanka, Bangladesh, Singapore, Malaysia, Indonesia, Thailand, and Australia, or through a network of freight-specialized partners elsewhere.
     “Aramex is both a global logistics company and a local provider in each country,” said Tannir. “This means we can offer customized, relevant, local insights and services in each market in which we operate.
     “We have our owned operations in the major countries within the AP region and cover the rest through a network of like-minded logistics companies and freight forwarders.”
TIACALogo     He said the AP region was critical to the company’s forward growth. “Scaling Aramex into new growth markets and bridging trade corridors to drive our aggressive expansion plans remains the company’s strategy, and we are after all a global logistics provider, so expanding operations in Asia is just business as usual,” he said.
     “I think AP is a key region of focus for us along with Africa. We have been focusing on expanding in these two regions for the past few years now, and we can say we have been doing it at the right pace.
AP is one of the regions where we strongly believe we still have very big growth potential, whether on the traditional East-West lanes or on the developing regional routes.”
     He said air freight markets had shown signs of major improvement this year. He also highlighted how international trade lane growth in Asia was rapidly evolving. “We have been sensing this improvement across most of the lanes—each to its own scale,” he said. “Now we can say that air freight cargo is on the way to regaining its position and market share of world trade.
     “Asia has been regarded as one of the biggest exporters of the world for years. It houses many developing countries and the new super economic powers.
     “For us, we have been seeing a serious shift from the historical Asia-EU or Asia-North America trade lanes into intra-Asia trade lane developments. This reason, among other internal strategic ones, was behind the Aramex expansion in Asia.
     “This year alone, we have announced two acquisitions in Asia—one in Australia and one in Thailand.”
SkyKing


 

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FT092514
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
FT093014
VOL 13 No. 81
To Be Or Not To Be TIACA 2014
Ahead Of The Curve
Shifting China Changing Logistics
Dascher Prancer India
Chuckles For September 30, 2014
News Briefs

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