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   Vol. 14  No. 29
Tuesday March 31 , 2015

 

Air Cargo News For January 29, 2015
Air Cargo News for March 30, 2015

 

Keeping Up With FlyingTypers At PVG

     The late Mayor of New York City Ed Koch loved to say to his constituents:
     “How Am I Doing As Mayor?”
     Sometimes hizzoner would get a glowing comment. Other times he might be damned to hell.

     We often get letters about various topics we have covered, opinions expressed and even, at times, heavy criticism of articles we have presented.
     But rarely do we get a reality check like this one.
     J. Patrick Murray is someone we are quite certain stands tall as the top IT guru in air cargo today.
     Smart, well spoken and able to translate his thoughts in a manner instantly comprehensible by all, Patrick, who heads up fast-growing CALOGI in Dubai, is a first-class mind when it comes to attending, digesting and then regurgitating air cargo session events.
     IATA WCS Reality CheckBut for IATA WCS, which took place in Shanghai early this month, Patrick tried a different approach.
     You see, for many of us—Patrick included—the event was too far away, too expensive, or just too tough to juggle in terms of schedules.
     So we asked Patrick to read up on the four exclusive articles we wrote and published about the event, which centered on the meetings and sessions, and then share his evaluation (good and bad).
     Here is the result.


Multilingual Tracks

     “I think that this is a great idea. We all tend to take it for granted that business is generally done in English. There are over 955 million Mandarin speakers in the world and only 360 million English speakers, so one could argue that the default should be that the proceedings are in Chinese with one or two tracks in English. An interesting thought.”


Dangerous Goods And The Threat To Air Safety

Patrick Murray     “We spend billions of dollars every year to ensure that passengers do not inadvertently bring dangerous goods onto the aircraft through baggage and carry on luggage screening. Thus, it is very difficult to inadvertently carry dangerous goods onto an aircraft. Contrast and compare this to the cargo industry, for instance:
     “He (Peter Hunt, Airline Ground Safety manager for Cathay Pacific Airlines) did not fail to emphasize at the very beginning of his presentation that ‘Lithium batteries are everywhere’—and, especially in the case of Hong Kong, this means they’re also in the mail, mostly undeclared, and often counterfeit.
     “The issue of intentionally undeclared or mis-declared shipments by wilfully non-compliant shippers was addressed by Mr. Hunt in no unclear words.
     “I recently read an article by Marie-Louise Morley on the AMSAFE website entitled ‘Playing with fire: Undeclared dangerous goods.’
     “Written in October 2011, it highlights that after nearly four years, the industry still has some way to go to address the problem of undeclared dangerous goods.
     “The article explains that goods sold via online auction and retail websites, such as eBay, raise concerns that frequently neither the seller nor the buyer has any understanding these are considered dangerous goods. These items are then not declared as dangerous goods, are not properly identified, are not safely packaged, and are not positioned in the aircraft in accordance with dangerous goods regulations. Today, these goods represent the biggest risk of fire in air cargo transportation, a risk that is increasing year-on-year as the popularity of Internet trading grows.
     “The article continues that to compound matters further, there is no general consensus within the industry on how to properly tackle the issue. While some advocate educating consumers via the auction websites on the safe packaging of dangerous goods, others believe in educating the actual shippers of the products. There are others still who believe in a program combining increased awareness and education, and stiffer penalties for those who do not adhere to regulations.
     “In the article, Chris Wren, sales and marketing director of AMSAFE, agrees appropriate training and education can help to address this problem. He also believes the industry is running out of time.
     “Following the Boeing 747 freighter airplane accident on September 3, 2010, at Dubai International Airport, the Federal Aviation Administration, Transport Canada, and the United Kingdom Civil Aviation Authority initiated a study to assess the magnitude of the potential threat to freighter airplanes from onboard cargo fires. The report made for sober reading, revealing that over the period 2011-2020 the predicted average number of cargo fire accidents would be in excess of six per year.
     “The good news is there are solutions in the marketplace, as FedEx ably demonstrated with the development of their pioneering main deck fire-suppression system in 2009. This system is the industry’s first onboard automatic fire-suppression system and is designed to provide heightened levels of safety during international over-water flights.
     “The highly sophisticated fire suppression system features a network of infrared thermal sensors, foaming agent generators and an overhead cargo-container injector that can control and extinguish a fire in a container in minutes. Fire blankets are also used to protect palletized loads. Current FAA regulations require that aircraft depressurize, divert to the closest airport and land immediately after any in-flight fire situation. This means the flight crew has about 30 minutes to safely land the aircraft. With the new FedEx safety system, aircraft on lengthy international flights, which can be up to three hours from land, are able to safely divert and land.
     “No doubt the rise of undeclared dangerous goods is a frightening prospect, but it has put safety high on many agendas. In some circles, safety is even considered more serious than security issues, and now is the time to act. If we don’t the potential consequences are unthinkable.”


Self Service Kiosks

     “This is a feature that Calogi is currently developing. The target audience are the many walk-in customers who deliver the one-off shipments here at Dubai Airport. The aim is to avoid the need for walk-in customers to visit the dnata counters, reduce the waiting times, increase the efficiency of the service, and offer a variety of payment options. We are still in the requirements stage and will delighted to share more information once it is operational.”


Putting The iPad On The Forklift

     “I’m very much in favor of utilizing tablets (iPads) in industrial areas of the air cargo business. Imagine conducting build up and breakdown activities from a full manifest view and recording delivery and acceptance while being able to add charges for additional/specialized services at the same time.
     “These devices can be powered from the forklift battery with no need to keep replacing and recharging the batteries. If they are detachable then all the better, since they can be used to scan bar codes. Needless to say, if they are detachable a good drop-resistance rating and crack-resistant screen are advantageous. Tablets for use in warehouses and other forklift environments should be rated to withstand repeated drops to concrete. Power management is another important consideration. When computers are detached from forklifts they run on their internal battery instead of the vehicle power supply. It’s also worth looking at the total cost of ownership. Tablets appear to be a lower-cost option, which is driving interest in the category. When used on forklifts, the list price of a tablet can be significantly different from its initial cost as it may be necessary to purchase Vehicle mounts, AC-DC power converter and cables, battery chargers and extra or replacement batteries, and a specialized dock with required interface ports (serial, USB, power).
     “An example is the ePic Mobile Warehouse Management System, used by Cargo Airline Services in the U.S., which uses an Apple iPad mounted on the forklift to optimize the process between the documentation department and the warehouse. The tablets are being used to electronically update cargo handling information at the warehouse level and make it available, in real-time, to every party in the logistic chain. While it can be argued the traditional handheld terminals can be used to do the same, the screens have limited screen size and can only be used for basic tasks, normally at a shipment rather than flight or consolidation level. It’s time for the industry to move forward.”


More Calls For Airfreight To Change


     “Once again a general consensus amongst participants and stakeholders regarding the fact that airfreight needs to change, with the best solution being technological innovation.
     “Comments from attendees included:
     “‘It is a fragmented and bureaucratic value chain,’ said Leif Rasmussen, president and CEO of SAS Cargo. ‘If we don’t try to free ourselves from this we will be in trouble.’
     “‘There is much more we can do,’ said Michael Steen, CCO of Atlas Air. ‘There is lots of obsolescence in the supply chain and several areas need to be addressed. Once we’ve done that we can increase market share.’
     “‘The only thing we can do is a total reinvention of processes. The mindset needs to change. We need more radical thinking,’ said Oliver Evans, chairman of TIACA.
     “‘If we can get the information to flow, weaknesses in air cargo would turn into opportunities,’ Robert Mellin, the head of distribution logistics for Ericsson, said. ‘But I don’t think you need to put in more money. It’s a self-paying process. I don’t see this transformation as something that will drive costs up, it will drive costs down.’
     “Thilo Schäfer, Vice-President Global Handling for Lufthansa Cargo, agreed that a cargo cloud would be ‘the next step.’ He added, ‘I don’t believe in messaging anymore.’
     “[It’s] interesting that the age-old concept of the Cargo Data Exchange, now renamed the Cargo Cloud, is still being muted by many as a potential savior for the industry. Given that airfreight shipments are around 1 percent of global trade, a Cargo Cloud would need to host and disseminate information relating to rail, sea, road (and drone?) shipments for this to become an attractive proposition for the industry. It is not entirely clear how this would really benefit airfreight versus other modes of transport. Meanwhile, I imagine the integrators are looking at the traditional air cargo industry with bemusement as another year passes.”
Geoffrey


HEL Never Looked Better

     Finnair connects its future in a new $80 million cargo transfer facility to accommodate its gateway operations at Vantaa Helsinki Airport.
     The 377,000-square-foot terminal opens in 2017 and will help AY take cargo further as capacity is lifted due to fleet renewal with A350XWB deliveries (Finnair’s cargo revenue currently delivers 17 percent of AY’s throughput).
     As announced last month, Finnair Cargo is also now part of the IAG Cargo’s Partner Plus Program adding connectivity to several destinations in North and South America and elsewhere via London and Madrid
     “Finnair Cargo goes where the business is,” said Pasi Nopanen, Finnair Cargo Sales Director, Scandinavia & North America.
     “Finnair Cargo business partners and others looking for the fastest connections via our Helsinki ‘Gateway Between Europe and Asia’ can advantage our service reliability via confirmed bookings from an expanded numbers of gateways,” Pasi said.
For More click here.
Sabiha


Chuckles for March 31, 2015

 

Lise-Marie Liked PVG
“Last picture of winter” has become almost an everyday operation over the past few months at Air Canada Cargo, but winter seems to be hanging on by the skin of its icy teeth.

Air Canada is on the eve of celebrating a significant milestone in 2016 when the carrier turns 78.

Lise-Marie Turpin     While more air carrier names than can possibly be remembered have flown away into the sunset during that time, today Air Canada is the largest full-service airline and the largest provider of scheduled passenger services in the Canadian market, the Canada-U.S. transborder market, and the international market, and a founding member of Star Alliance. Together with its Air Canada Express regional partners, Air Canada serves close to 35 million passengers annually and provides direct passenger service to more than 175 destinations on five continents.
     Air Canada’s cargo division has long had a reputation for service excellence and innovation, something we can attest to dating back to the days of Mike Scullion, who led the charge during the 1970s, and to the long tenure of Claude Morin, who moved from cargo upward at Air Canada.
     Today, Lise-Marie Turpin, managing director of Air Canada Cargo, is the highest ranking female air cargo leader in the Americas, and she has held that unique position since she was appointed Managing Director of Air Canada Cargo in September 2008.
     As an active participant at the World Cargo Symposium, we asked Lise-Marie to share some thoughts on the recently completed conference in Shanghai.


Great Catching Up

     “I always enjoy this conference! It’s a great way to catch up with people and it really allows us to take the pulse of the cargo industry.
     “This year, I felt there was a particularly high level of interest and engagement across all the various sectors.
     “A few things stood out to me. First, it’s clear that there is a sense of urgency to move our industry forward—I felt this was one of the common themes touched upon.
     “The need to standardize communication and processes throughout the supply chain—that is another thread running throughout all of the sessions and conversations.
     “I also heard a lot about technology. Everyone agrees that we need new technologies to deliver quality, for consistency, and to improve efficiencies in our industry.”


2020 & Air Canada Cargo 2015

     “Having just achieved its best full year financial performance in its 77-year history, Air Canada is looking to continue its path of sustainable growth in 2015. Air Canada continues to implement cost reduction and revenue-generating initiatives, which includes profitable international growth and the continued deployment of rouge® to compete in leisure markets.
     “For Air Canada Cargo, this means meeting our objectives of contributing to the profitability of new and existing routes as we expand our network and fleet. Our widebody fleet will double by 2020—this is significant.
     “We are focused on developing technologies to improve our efficiencies, innovating to ensure a superior offering, and putting the right teams together to lead us through this time of growth. Key to all of this, of course, is our relationship with our customers. We’re committed to listening to our customers to make sure we continue providing them with a competitive product offering and the service level they need to be successful in their own businesses.”


Word Up That Cargo Is Key Here

     “Air Canada Cargo plays a key role in the airline’s expansion plans. We have a solid foundation with a model for profitable, sustainable growth. Air Canada is investing heavily in its fleet with Boeing 777, 787, and 737Max, which is a significant capacity increase for us in the next five years.
     “Air Canada Cargo is improving our offering. We’re enhancing our solutions, we’re innovating, and we’re putting teams in place to manage the customer experience.
     “It’s an exciting time for us, and we want our customers and service partners to know that we’re doing everything to continue on our path of sustainable growth, so they feel confident to grow along with us.”
Sabiha Arend




Amazon Drones On

   U.S. regulators are not moving fast enough to permit Amazon’s “Prime Air” drone delivery service to take off, said Paul Misener, vice president of global public policy at Amazon to a Senate panel earlier this week.
   Lawmakers also heard that the Federal Aviation Administration (FAA) permit process moves so slowly that an Amazon drone became obsolete while waiting the FAA OK.
   FAA has approved an experimental permit last Thursday to test package deliveries, but Amazon wants more.
   In the meantime, FAA (as is their normal procedure) is gathering public comment, with final approval expected within two years.
   So far drones have not been approved for commercial use anywhere in the world.

Rolf Habben JansenHapag Lloyd Hopes & Loss

   “In terms of results, 2014 was undoubtedly an extremely disappointing year,” said Hapag-Lloyd CEO Rolf Habben Jansen, as the group reported a net result of EUR -603.7 million (previous year: -97.4 million).
   “At the same time, however, the successful merger with CSAV also made it a highly significant, ground-breaking year for Hapag-Lloyd.
   “We are now much more competitive and fit for the future, to which we are looking with optimism.”
Hapag-Lloyd’s transport volume grew by 7.5 percent to 5.9 million TEU in 2014.
   Average freight rate was down 3.2 percent year-on-year at USD 1,434/TEU, while revenue rose by 3.7 percent to EUR 6.8 billion.
   EBITDA came to EUR 98.9 million (previous year: EUR 389.1 million) and the operating result to EUR -112.1 million (previous year: EUR 67.2 million).
   Looking ahead with Hamburg Su_d, CMA CGM and other shipping companies, Hapag-Lloyd says it will unveil new products between Asia and the western and eastern coasts of Latin America from July onwards. These services will employ over 50 ships in all, with Hapag- Lloyd contributing 20 of them.
This includes CSAV’s seven efficient 9,300-TEU newbuildings.
   Five from this series are already in service, with the final two set for delivery in early May and early June.
   “The merger with CSAV marks the opening of a new chapter in Hapag-Lloyd’s 168-year history. We are now looking ahead and focusing our efforts on returning Hapag-Lloyd to profitability and achieving a clearly positive operating result in 2015,” Habben Jansen concluded.

Thomas Kurzweg
   Thomas Kurzweg now tops the sales team at Frankfurt-Hahn Airport. As director Marketing & Business Development, Thomas Kurzweg (43) will attempt to develop passenger and cargo business, and all marketing concerns at the oft overlooked “other airport.”
   Christoph Goetzmann is cargo sales manager at Frankfurt-Hahn.
 

Farewell To A Friend

Wolfgang Bauer     It was completely coincidental that Wolfgang Bauer and I both arrived in New York on January 2, 1969, independently transferred from our jobs in Germany to new responsibilities in America. Wolfie, as his friends affectionately called him, was employed by Seaboard World Airlines in Stuttgart. He had been appointed to New York as one of their team of representatives from a number of European countries called the “foreign legion” under the leadership of the legendary Al Levinson.
     I worked for a German freight forwarder called Deugro and had been transferred from my job as regional manager in the Cologne/Düsseldorf area to run the New York office, the only U.S. station for Deugro at the time. I opened this office at JFK for the company back in 1966 on a short-term assignment and was asked to go back in 1969.
     Wolfgang and his wife Uschi had temporary housing at the JFK Holiday Inn, and I had rented an apartment in Forest Hills, Queens. During a severe snowstorm on February 9, 1969, most streets in New York became impassable. I walked and hitchhiked my way from Forest Hills to the JFK office only to be unable to return to my home in the evening. I took refuge in the nearby Holiday Inn, and that is when I met the Bauers.
     That was the beginning of a friendship that lasted all these years. Wolfgang became the godfather of our daughter Jennifer in 1975, and he joined EMO Trans in 1980 as sales manager, a role in which he gained many valuable customers for the company. As EMO Trans was expanding across the U.S., Wolfgang opened the Atlanta office in 1982.
     There are other milestones to remember:
     During the mid '80s, air cargo space across the North Atlantic became extremely expensive and very scarce. All carriers were full and charged prohibitive prices. EMO Trans decided to operate a chartered cargo aircraft five times a week between Cologne and New York. Wolfgang, with his carrier experience, became the center point of this development in JFK. Immediately, we added a carrier operation to our forwarding company with many co-loaders flocking to our doors. These actions gained us a lot of respect and support from our customers.
Wolfgang Bauer     Wolfie was a true Swabian, with the distinct dialect of the people from that region sometimes shining through, even when he spoke English. He loved and enjoyed life, was sometimes easily excitable, but always down to earth, with integrity and a big heart. A true friend to many, his sense of humor was refreshing and enjoyable. During our daughter Jenni’s wedding to Paul Latham in the chapel of an old castle on the Rhine river near Mainz, Wolfie stood next to the pastor and performed, sentence by sentence, the translation of the ceremony for the English speaking members of the congregation. Of course he delivered the translation with his usual wit, good spirits, and personal interpretation.
     I could go on for a while, and there are simply too many happy memories to recount them all here.      We were been looking forward to celebrating EMO Trans’ 50th anniversary in Stuttgart this year; alas it was not to be. Wolfgang passed away last week at the age of 82. He will be missed by many, and I will never forget him.
     Our thoughts, prayers, and support are with his wife Uschi, and we wish her strength and endurance in this difficult time.

Jo Frigger
CEO
EMO Trans


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