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   Vol. 14  No. 18
Thursday February 26, 2015

 

AfA Tops Next Week

Brandon Fried   “More than 800 professionals from across the air freight supply chain will gather in New Orleans in two weeks to discuss trends, challenges, opportunities, and the future of the air cargo industry at the industry’s premier conference and trade show, AirCargo 2015,” says Airforwarders Association Executive Director Brandon Fried.
   “Our event brings together airlines, airport authorities, freight forwarders, and expediting companies, along with the vendors who support, [and] will take place March 1-3 at the Sheraton New Orleans.
 Jolly Shirt  “The agenda for the event includes a broad range of learning and networking opportunities, most notably a session with Transportation Security Administration officials on current air cargo security threat awareness and the upcoming launch of the Indirect Air Carrier security program, as well as a presentation by Dan Muscatello, former head of cargo operations for the Port Authority of New York and New Jersey, on how airports can stay in the air cargo facility development game.
   “Other highlights of the learning program include sessions on upcoming changes in government import and export programs, strategies for surviving government enforcement actions, a ‘What keeps you up at night?’ session with airlines, forwarders, truckers, airports, and government regulators in attendance, and several others on legal and regulatory compliance,” Mr. Fried said.
   “Jim Crane, the Houston Astros owner who built his wealth and success on revolutionizing air cargo, will deliver the keynote address, in which he will discuss his cutting-edge strategies for moving freight and building enormously successful companies that do it.”
   The program will kick off on Sunday, March 1, with an industry-focused women’s networking session sponsored by Delta Airlines and moderated by Doug Brittin, Secretary General of The International Air Cargo Association (TIACA).
   The event is sponsored by the Airforwarders Association, the Air & Expedited Motor Carriers Association, the Express Delivery & Logistics Association, and the Airports Council International - North America.
   Last minute online registration is available at www.aircargoconference.com.

 

Wish We Said That

 Robin Finke    Now that the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) have reached a tentative coast-wide contract accord for five years, U.S. West Coast port operations can return to normal.
     The vote to ratify the contract could take several weeks.
     In the meantime—not to overstate the obvious—the National Retail Federation has said that management and labor must focus on clearing the backlog of containers and vessels at West Coast ports.
     We wonder is/was there an upside to West Coast port congestion?
     “Ports along other U.S. coastlines may grow, as shippers satisfy their need for access to dependable ports,” said Robin B. Finke Corporate Ocean Freight manager, EMO Trans, Inc.


Best In Show
Click To View Our Coverage Of Three 2014 Shows

Air Cargo Handlers Conference Air Cargo Handlers—eAWB Reality Check
Air Cargo Handlers What Airports Can Do Best In Show What Airports Can Do
TIACA In Seoul FIATA Not Yada Yada Part I
FIATA Not Yada Yada Part II

 

Calogi Rock Around The Dock

Patrick Murray     Head of Calogi Patrick Murray may be known on the air cargo trade show circuit for giving away i-Pads to attendees, as well as his crowd-gathering electronic dart game, which always hits the bulls-eye at these events.
     But the other Patrick turns out to among the smartest and most well-spoken dreamers and doers in the IT game, especially when you get him geared up and talking about what enhanced and further developed systems can mean to the global air cargo business.
     Patrick talks about innovation and building his fast-growing IT company 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 learned during a recent conversation, Calogi is building step-change for the worldwide air cargo community.
     Amidst a growing number of IT companies, fast-rising, Dubai-based Calogi is offering 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.”
     We asked Patrick to take a moment and share his take on 2014 and how air cargo might better itself in 2015.


Up, Up, & Away

     “Once again we have built on our success and are experiencing our best ever year.
     “Growth has been phenomenal, in terms of both transactions and revenue. In the last six months, we have seen an increase in transactions of 9 percent and our revenue and profitability has exceeded all expectations, with income increasing by 26 percent versus the same time last year, and profitability increasing by a colossal 250 percent.
     “This great achievement is credited to sheer hard work and our team’s commitment to excellence.
     “Last year’s customer survey supports this statement with glowing reviews from our customers.
     “In a nutshell:
            Overall satisfaction with Calogi had been extremely high with 70 percent of freight forwarders and 46 percent of GSAs and airlines giving an ‘Excellent’ or ‘Very Good’ rating.
            75 percent of freight forwarder managers view Calogi as better compared with similar IT solutions, with 57 percent of GSAs and airlines having the same view.
            84 percent of freight forwarders and 68 percent of GSAs and airlines said they would recommend Calogi to other stakeholders looking for IT solutions.

     “We also take the feedback for suggested improvements very seriously and each year we publish an action plan to address these on our website.”


What Is Calogi?

     “Calogi is an excellent and unique product—simplifying the air cargo supply chain, increasing efficiency, and generating income, while reducing costs. “The model in Dubai stands as a testament to that claim and I continue to invite industry leaders, who are serious about reducing their costs or growing their business, to visit us and speak to some of our customers.
     “We continue to pilot the electronic consignment security declaration and have a solution for both large and small companies. Key to this development is to remove the need to re-enter data, and offer a seamless solution allowing large and small forwarders to participate in the IATA ‘secure freight’ program.
     “There are two issues we still need to overcome:
          1.  Producing an electronic consignment security declaration (e-CSD) where there is no regulated agent program
          2.  Send an e-CSD (which is part of the FWB) when a third party is securing the goods, but not executing the air waybill
     “We are working with industry stakeholders to resolve both issues.
     “Furthermore, we are looking to simplify the business here in Dubai further by introducing a range of self-service options for customers. We are working on the requirements and planning to roll out the first phase next year.”


The Calogi Dock

     “With the current capacity constraints in Dubai, we have seen a huge surge in terminal dock bookings made through Calogi. The Calogi Dock Booking feature has allowed the cargo terminals to streamline their acceptance and delivery process and allows an agent to pre-book an import or export dock and receive priority service. Furthermore, the cargo terminal has identified off-peak, normal, or peak rates for each acceptance and delivery dock to allow them to spread the workload. All Dubai freight forwarders currently subscribing to Calogi automatically have the opportunity to book docks at the dnata Freight Gate facilities. Based on historical data and the type of dock, Calogi calculates the loading and unloading time required for one or more shipments and automatically determines the time needed to complete the acceptance or delivery process. We are now in a position to streamline this further and make it easier for a customer to pick up and deliver shipments.”


The Dubai Miracle


     “The Dubai cargo business continues to grow at a phenomenal rate and to put pressure on local stakeholders to do things smarter.
     “The Calogi Dock Booking feature is one of our many responses to the growth challenge.
     “In the last month, Calogi has processed over 10,500 export dock bookings for over 18,000 tons of cargo, an incredible feat.
     “While on the subject of terminal dock booking, dnata has implemented a traffic management system allowing forwarders who have made a dock booking to enter the facility through an automated gate. The gate activates via a 2D barcode generated to their smartphone from Calogi.
     “The barcode contains air waybill details, and commensurate dock bookings.
     “For users who do not possess a smartphone, a paper version can also be printed and scanned to gain access.
     “At the last Air Cargo Europe, I committed to identifying ways to use smartphone technology to do business and this is the first of many developments.
     “A major issue for busy airports is reducing truck movements and emissions.
     “Our dock booking helps resolve many of these issues.
     “We are looking at ways we can exploit our solution to improve and simplify this area of concern.
     “Very exciting times.”


Where Air Cargo Needs To Be

     “IATA challenged the industry to remove 48-hours from the transit time of shipment.
     “While this is possible, the question is the impact airlines have to make this happen—they are responsible mainly for flying the shipment from origin to destination, a maximum of 24-hours of the actual ‘dwell time.’
     “Several factors can be responsible for the delay, such as customs clearance times, GHA acceptance, forwarder deliver times, forwarder pick-up times, cool down periods, there are many points at which delays can occur.
     “If we are serious about reducing the dwell time then we need to identify where the industry stands now and what the target should be.
     “Then we need to ascertain who should be responsible. ACI makes some interesting points in their Cargo Facilitation Paper, namely:

     ‘ACI supports ICAO Annex 9 Recommended Practice 4.29 establishing a target Customs clearance time of three hours for arriving general cargo not requiring examination, from the time proper documentation or a legally acceptable electronic equivalent is presented. In line with ICAO Standards 4.25 to 4.27, shipments such as perishable goods, live animals, personal effects and low-value goods should be cleared promptly on arrival. As provided under RP 4.28, goods imported by authorized importers who have demonstrated compliance with Customs regulations and who supply advance information, should be released immediately on arrival.’
     ‘Airports should take a leading role in measuring and monitoring the performance of airport cargo facilities and services. The methodology for assessing performance and service quality is not well defined or developed, and no generally accepted standards exist, but fast processing (average dwell time), high space utilization (e.g. tonnes of cargo handled per year per square meter of warehouse space) and low manpower requirements (e.g. tonnes of cargo handled per year per employee) should be among the criteria used for assessing economic and efficient cargo handling. The applicable standards for each criterion will vary, depending on the type of operation and cargo. Research is also needed to establish cargo status monitoring systems, using information technology.’

     “The recommended customs clearance time will certainly have a positive impact on the dwell time. I would go a step further and introduce pre-clearance for ‘trusted traders.’ The latter is a interesting point of view and if implemented would mean the airport would step out of their role as landlords and take a more proactive role in measuring and monitoring the cargo operation. In the maritime industry, certain port operators publish current performance figures on their web site; it would be good to see this level of transparency in the air cargo industry.
     “Regardless, the challenge is there and we need to step up to it. As I said, we need to better understand where the bottlenecks are and why the dwell time is still at an unacceptable level. More importantly we need to develop an industry action plan to address the same. Once we are aligned on the direction, we at Calogi will work with industry stakeholders to develop the measures and system processes to expedite the movement of cargo.”


e-cargo, e-freight and e-AWB

     “[There is] still a long way to go for all stakeholders. There has been a huge amount of effort expended by the industry in implementing e-AWB, penetration has increased to 19.4 percent, and it appears that we are on target to achieve 22 percent by the end of the year, which will be a great achievement for our industry.
     “I admire the approach and investment made by the integrators and our industry is right to use them as the benchmark by which we measure ourselves. They are leaders in terms of e-commerce and I’ve found it easy to do business with them. I use integrators often; I create the air waybill from my desktop (which takes a minute), get a price for pick-up and delivery, put the shipment into a pack, and off it goes. However, investment in IT solutions and simplifying the business model is high on their agenda. Some of the very large airlines and forwarders are also making strides to embrace e-commerce and are doing some great things. At the other end of the spectrum we have the SME forwarder, airlines, terminal operators, and GSAs, many of which do not have systems e-enabled or may not have systems at all. It’s economics—paying for an e-commerce system, in many cases, may be the difference between profit and loss.
     “Solution providers need to recognize the importance of cost effectiveness.
     “It is worth noting that IATA, based on the industry’s call on cargo electronic data interchange (EDI), is planning on freezing further development of Cargo-IMP messages by the end of 2014, and encouraging use of Cargo-XML messages. Cargo-IMP messages can still be used in the industry but IATA will stop enhancing this standard.
     “According to the web site, this implies that:
             The last edition of Cargo-IMP Manual (34th edition) will have been published at the end of 2014
            New upgrades will only be conducted in the equivalent Cargo-XML messages
            IATA will only maintain the Cargo-XML Manual and Toolkit

     “It will be great to see one standard across multiple modes of transport and multiple stakeholders, but the cost of upgrading and parallel running of XML and CargoIMP will be with us for some time, I fear. Solutions providers, like Calogi, have a large part to play in this. Cost-effective standards would certainly encourage the industry to move to new ways of exchanging data.
     “In Dubai, we have set aggressive targets for e-AWB implementation, and we will do everything in our power to push the industry into a paperless environment. We have had the technology for some time, now it’s time to further exploit this.”


Calogi @ Sharjah

     “Together with Sharjah Airport Services (SAS), we have re-affirmed our commitment to simplifying the way the Sharjah Forwarding community carries out its business. In response to calls from the air cargo supply chain community, Calogi has built an interface that allows forwarder customers to do e-commerce transactions with both the airline and SAS, demonstrating the continued support for one of the pillars of e-freight; data is entered once and re-used across the supply chain. The popularity has been such that on the day of the launch 11 large Sharjah freight forwarders joined Calogi, with many more to come.
     “The initiative also paves the way for us to roll out our air waybill stock release feature to Sharjah airlines and forwarders. The concept is brilliant but simple—an airline makes a pool of air waybill stock available to the community and each forwarder has the option to assign an air waybill from that pool to a particular job. Upon execution of the air waybill, the monies are deducted from the forwarder’s Calogi credit account, and credited to the airline. The airline retains part of the air waybill fee, a source of income that did not exist prior to the Calogi implementation.
     “Shashi Panicker, head of Cargo, has been supportive of the move and says SAS has always pursued innovation in services and in the technology they use to support their customer base in Sharjah. SAS also intends to actively pursue e-AWB implementation through Sharjah, and we agree a product like Calogi will help the small and medium size enterprises meet those requirements quite easily. We are extremely pleased to work together with SAS to offer an industry leading e-commerce solution in Sharjah to improve SAS’s overall service proposition to our customers.
     “Technology can be intimidating to many organizations, especially those in the cargo industry, but Calogi takes the fear out of the process, turning complex issues into easy-to-understand solutions.      Other stakeholders have appreciated the dedication shown by the Calogi team and have found true value in the Calogi product enabling them to reach out to their customers easily and faster now.
     “The freight handling volume at the Sharjah International Airport crossed over 290 thousand tonnes last year, and the capacity is gauged at roughly over 700 thousand tonnes. Presently, Sharjah Airport serves more than 250 companies.
     “For Calogi this is a fantastic result and we are pleased to collaborate with forward thinking companies like Sharjah Airport Services. We remain immensely proud of our achievements in Sharjah and look forward to continuing to support the community goal of removing outdated paper-based processes.”
Geoffrey Arend


Chuckles For February 26, 2015


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An Aer Lingus aircraft is seen at Dublin airport, as earlier this week the board of the airline restated backing a British Airways’ takeover bid, revealing that profits at the Irish carrier have soared almost 18 percent.
   Announcing its preliminary results for last year, the Irish airline said “excellent” operating profit performance of 72 million euro was up 17.8 percent over 2013.
   Total revenue was up 9.2 percent to 1,556.9 million euro as passengers surpassed 11 million for the first time in its history.

New Harare Cargo Terminal

Caleb Mudyawabikwa   Aviation Ground Services (AGS) debuted a new $300,000 USD cargo terminal Wednesday at Harare International Airport (Zimbabwe). Managing Director Caleb Mudyawabikwa said that his business volumes for 2014 were up 104 percent percent compared to the prior year, driven by perishables exports and a positive rating by the European Union.
   Mr. Mudyawabikwa said a rebound in the horticulture sector follows the government’s land reforms at the turn of the century.
   “Even though some international carriers pulled out of Harare due to some depressed cargo passenger volumes, we are flying the flag high,” Mr. Mudyawabikwa added.


Drone Crackdown In USA   Even before the first package drones from FedEx, Amazon, or anyone else become airborne and ready to deliver a bolt out of the blue to your doorstep, politicians sensing a public safety issue are ramping up legislation to stop them.
   Currently 15 states in the U.S.—from Alaska to Louisiana with Illinois in the middle—have enacted rules to restrict drones.
   The latest has some New York City Council members calling for a total ban.
   One council member named Dan Garodnick who opposes the drones says he is worried about the ability of law enforcement to hold drone operators responsible if something goes wrong, especially in crowded New York City.
   One can only the wonder: if these restrictions continue to gain momentum, will the U.S. be left out of what is expected to be a $91 billion delivery system developing over the next decade?


A Landmark Series By Richard Malkin

Richar Malkin true Confessions Jan Krems True Confession Oliver Evans True Confession

Our Martin Changed Air Cargo

     If you want to learn about August Martin, the great air cargo pilot who flew for Seaboard World Airlines during the 1950’s, and was also the first black man to captain a U.S. flag air cargo airplane, you better plan on either using your old Funk & Wagnall’s Encyclopedia, or visiting the wonderful high school located near JFK International Airport in Queens New York City named in honor of the air pioneer.
     The name August Martin as an internet search, most often comes up as “August” 28, 1963, when “Martin” Luther King delivered his never to be forgotten “I Have A Dream,” speech at the Lincoln Memorial in Washington, D.C.
     This August Martin, a gentle man would go down in history as the first African American to serve as Captain on a U.S. scheduled airline.
     Put another way, before “Augie” as his friends called him, there had never been a black airline captain on the bridge of any U.S. flag airline.
     Although he flew for other carriers, including El Al Israel Airlines and a company called Buffalo Skylines between 1946 and 1955, it was Seaboard World Airlines, an air cargo company, which hired Augie and broke through a glass ceiling in American culture.
     Air cargo put a great aviation pioneer, who happened to be black, in the left seat.
     August Martin, who was born in 1916 had aviation blood in his veins.
     He worked all his life to be a pilot, training as a youngster to fly small prop jobs and later during World War II as a front line Mitchell B26 bomber pilot.
     He also took training at the Tuskegee, Alabama base, which spawned the legendary black pilots who gained fame as The Tuskegee Air Men.
     While awaiting his big break with a scheduled U.S. flag carrier, Augie worked as a stevedore on the New York docks to make ends meet.
     But when SWA came a knocking, August Martin was ready.
     For the next thirteen years Martin piloted the legendary all-cargo aircraft of SWA, including the Lockheed Constellation, Canadair CL44 swing-tail freighter, Douglas DC-4 and DC-6 among others.
     August Martin was not just about breaking through for himself. Augie also gave back big time.
     Often, he would donate his off time and vacations, flying supplies to the impoverished in Africa, and other points of emergency and need around the world.
     On July 1, 1968 August Martin was killed aboard just such a flight when his cargo-laden aircraft crashed in a blinding rainstorm as he attempted to land in Biafra, Africa.
     Today, in modern air cargo circles not much is known or said about August Martin.
     Air cargo groups and organizations, and increasingly publications yearly name people to this and that “Hall of Fame,” blithely unaware that one of the truly, great firsts in the history of air cargo was a black man with the rank and responsibility of Captain of a great international airline.
     August Martin deserves charter membership in any air cargo “Hall of Fame.”
     Here was a guy who not only makes us proud, he makes us look good.
     History demands the truth.
Geoffrey/Flossie

 

If You Missed Any Of The Previous 3 Issues Of FlyingTypers
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FT021715
Vol 14. No. 15
Stop The World I Want To Get Off
AFKLMP Heats Up Cool
Something For The Kids
Chuckles For February 17, 2015
Weathering Fat Tuesday
FT021915
Vol 14. No 16
Lunar New Year Around The World
ASEAN No Show Still Has A Date
The Year Of The Green Wood Goat
It's Your 'Fortune' Cookie
Saudia Strong
Make In India

Publisher-Geoffrey Arend Managing Editor-Flossie Arend Associate Publisher/European Bureau Chief-Ted Braun
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