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   Vol. 14  No. 32
Friday April 17, 2015

New Landmark Address For Air Shippers

Istanbul is home to fast rising Turkish Airlines Cargo, and the carrier just moved into a beautiful and dramatic new Air Cargo Transfer Facility on January 1, 2015.
Here, Halit Anlatan, Vice President Cargo—just back from launching new service from IST to SFO (MIA is coming on line with services later this year)—offers a preview of an upcoming, special feature in FlyingTypers.

Taking Delta On The Road

     Delta Cargo Vice President–Commercial Ray Curtis gets excited and deeply involved whilst attending air cargo industry events. He can also get pretty worked up about show venues that offer an opportunity to do some good, lasting business.
     Big thoughts were sprung and sung in Shanghai recently, after which Delta Cargo’s vice president of sales moved back stateside to attend the gigantic Seafood Expo North America/Seafood Processing North America in Boston, followed by a quick post Easter trip to Intermodal Sao Paulo. The CNS partnership conference is up next on the agenda, proving Ray Curtis moves as nimbly from show to show as he does from success to success–here, FlyingTypers catches up with the top executive.

In Boston for Seafood

     “We’ve been participating in the Seafood show for nearly 30 years, and year after year we find great value in being a part of this event. It’s an ideal opportunity to connect with our customers and stay up to date on this important segment of our business.
     “Delta Cargo is a competitive option for seafood and other perishable products; we have a far-reaching global network and a fleet of aircraft that can deliver perishables to destinations all over the globe and be fresh on arrival.”

Reliability Keys Success

      “Operational reliability is extremely important for time-sensitive shipments.
     “Delta is running a very reliable airline. In fact, 2014 was an exceptional year for our company. We finished the year as the number one U.S. global network carrier in key DOT categories, with an on-time performance of 83.7 percent and completion factor at 99.2 percent. Delta had 95 days where we completed 100 percent of our mainline flights. This is something we are very proud of as a company and are focused on continuing our momentum this year and beyond.”

Perishables As A Foundation Business

     “Perishable products are a key component of our business and we will continue to make investments to support the efficient and reliable transportation for these products in line with the needs of our customers.
     “In fact, we have increased the staffing of our product team, led by Alex Clayton, which will allow us to more keenly focus on needs and growing our business in this market and others.
     “Our worldwide cooler facilities are set up to support the temperature control environments required to store perishables in transit and on arrival.
     “In 2013, we invested $700K in a 3,000-square-foot cooler in our Detroit facility, which features two drive-through doors with pallet-capable storage that increases capacity for shipments of pharmaceuticals, flowers, fish, and seafood as well as fruits and vegetables in ideal climate conditions.
     “During the spring of 2014, we opened a 36,000-square-foot, state-of-the-art co-location facility in Miami with Virgin Atlantic, one of our joint venture partners.
     “This warehouse has a 7,200-square-foot cooler space with temperature tracking capabilities and monitoring systems allowing for ideal temperature control, which is great for perishable products.
     “So, we are continuing to make investments to support this key component of our business.
     “We were pleased with the season last year where we were fortunate to grow our business.
     “In 2014, we moved more than 31,000 tons of seafood around the world with the majority originating in New York and Boston.
     “Our excellent season out of Seattle and Alaska also contributed significantly to that number.
     “We were especially pleased with the salmon season in Alaska where we moved more than 2.5 million pounds out of Anchorage in five months.
     “Salmon from Santiago and tuna from Palau were also good markets.
     “Because fish is time-sensitive, we foresee positive trending for air to continue being a preferred mode of transportation in the future.
     “Also, as the world becomes increasingly more health-conscious—consuming more fresh and organic foods—we see fresh fish having growth potential as the demand for it increases.

Paperless Air Cargo

     Taking a wider view, Ray Curtis has some ideas that he believes should be shared industry wide.
     “The air cargo business needs to continue to evolve and become more efficient for all players in the supply chain.
     “At Delta, we are highly focused on removing paper from our business and providing our customers with intuitive, easy-to-use self-service options for booking, submitting AWBs electronically, and tracking their shipments throughout the lifecycle.
     “We’re seeing real success in our efforts to remove paper from the business and ended 2014 with international eAWB penetration of 41 percent and 75 percent domestically.
     “This is an area we remain committed to growing.”

How Goes The Shipment At Delta

      “We’ll start with our people because they’re what truly set us apart from our competition; we have the best people in the business.
     “Our team strives to take superb care of our customers at each interaction from booking to delivery.
     “We make every effort to protect fish from the moment we accept it until it is delivered.
     “When a shipment is accepted, we inspect the boxing/packaging to ensure it complies with all of our instructions and IATA’s regulations.
     “When these guidelines are followed, shipments can withstand a transit time of 48 hours in the event that there’s a delay in the arrival.
     “To further protect fish and keep it as fresh as possible, we intentionally wait as close to departure time as possible to take it planeside for loading (approximately one hour).
     “Upon arrival at the destination, we continue to monitor the handling of fish and keep it in coolers until it is picked up by customers.
     “Our team is well-trained on the importance of and the care required for the shipment of seafood.

Performance Is Job One

     “As I mentioned before, Delta’s operational performance is exceptional.
     “We’re continuing to make investments in technology that also support the shipping process.
     “Our teams are actively working closely with their customers to educate them on the benefits of booking their shipments electronically and moving from paper to electronic air waybills.
     “In the second quarter of this year we will be launching a newly-designed customer experience on that will offer more intuitive self-service options for booking, electronic air waybill submission, and tracking shipments, further simplifying the user experience.
     “Modernizing our business is something we need to work together as an industry to achieve.
     “We operate in a very competitive market. In the air cargo industry, our planes don’t fly any faster, so we have to make an impression that makes customers want to do repeat business with us.
     “We have an unwavering focus on customer service.
     “Look, we realize they have options, and we want them to continue to choose Delta Cargo for their shipping needs.
     “Our people continue to make the difference.”

Next Week At CNS Partnership

     “Our theme is to connect with our customers.
     “The team is looking forward to seeing our business partners and colleagues this year at the CNS Partnership; they are our focus and why we do what we do.
     “We’re committed to providing the products and services our customers need to grow their business.
     “It’s incredibly important for us to continue to have conversations with our customers about their needs and where we can make improvements.
     “CNS also provides an additional opportunity to thank our customers for the business they continue to give us year after year,” Ray Curtis declared.

Echoes 1975-2015   The year 2015 marks our 40th year in the world of air cargo news reporting—first as Air Cargo News and now as FlyingTypers.
   The stewardship of Air Cargo News FlyingTypers hasn't changed since 1975, and while that is an impressive feat, what is even more remarkable is that in 2015 we have been fortunate to present the writings of the nearly 102-year-old Richard Malkin, who remains the first air cargo reporter in history (circa 1942) and now serves as FlyingTypers' Senior Editor.
Here Richard continues a remembrance of events in an exclusive year-long series, "Echoes 1975-2015."

Echoes 2007
  DHL Express purchased a 49 percent stake and 25 percent of voting rights in Polar Air Cargo—an investment of $150 million. The deal guaranteed DHL transpacific access over a two-decade period. Potential revenues are estimated in the neighborhood of $3.5 billion.
  As DHL Express’ global CEO, John Mullen, viewed the deal, it will reduce transit times as well as upgrade delivery reliability in the Pacific marketplace. Mullen held that the move was a “strategic thrust” that adds muscle to DHL’s competitive position.
  Although Polar is an independent operation, it is wholly-owned by Atlas Air. The purchaser is a unit of Deutsche Post World Net.
Richard Malkin

Intermodal Gets High Marks

   The big Intermodal South America show held last week in Sao Paulo, Brazil, gets high marks from Jim Bellinder, Vice President, Cargo Sales Americas – United Airlines.
   “United Cargo always gains high value from our presence at Intermodal South America. We benefitted again this year from the opportunity to interact with many high-level decision makers in a supportive environment. Staying connected to our customers ensures we will continue to expand our business in this very dynamic region.
   “We discussed creative customized solutions with several customers and had the chance to review emerging trends and business conditions with many more. United’s strength in Asia was a focus, as interest remains strong in the Latin-to-Asia trade lane. The outbound Latin-to-Asia market continues to grow, led by the automotive and aerospace sectors along with perishables and pharmaceuticals.
   “On the subject of pharma, we highlighted the many ways we’re enhancing our TempControl business: expanding the network, offering new product options, making new containers available, and elevating our customer service. We were also encouraged by the level of interest in the e-AWB, with a number of customers stating their intentions to explore or adopt the process.
   “I’m hoping for the same strong level of customer connection at the CNS Partnership Conference next week. We’re looking forward to a series of customer meetings less formal than in the past: plainspoken and practical conversations about how we can contribute to each other’s success. Now that customers have seen United Cargo’s new ‘business friendly’ ads and brand identity, we want to support those ideas with deeper levels of partnership and collaboration.”

chuckles for April 17, 2015

India Postman Rings Twice
     The Internet may have almost sent the venerable 150-year-old India Post into hibernation, but it is the same Internet that is bringing it back to its feet.
     Like the fabled carrier of the mail, for India, the postman rings twice!
     In fact, FlyingTypers learned in an exclusive interview that India Post—incidentally the world’s largest postal network—is keeping pace with the fast-changing technology, especially in logistics. That is helping to keep the behemoth’s huge network running and well oiled.
M S Ramanujan     Today, India Post is looking at the e-commerce market, which it would not have thought about a few years ago. Looking at the potential, the Chief Postmaster General (CPMG) of Karnataka, Tamil Nadu, and Kerala postal circles, M. S. Ramanujan has demanded that India Post needs a fleet of dedicated aircraft to deliver e-commerce shipments. The CPMG knows what he is talking about. He was stationed at the Indian Space Research Organization and was in control at the Sriharikota Rocket Launch Station.
     “I have had the privilege of launching rockets also from Sriharikota. So launching rockets to moving mail bags has been my range of experience,” he said.
     “Logistics was there because I had to move the rocket parts, satellites from Bengaluru to Sriharikota for assemblage, and similarly rocket engines from Trivandrum and Mahendragiri. It was logistics of a different order…”
     And a few months ago, while talking with this correspondent, Ramanujan said that India Post would be able to take on the e-commerce business. He mentioned that DHL Worldwide had a healthcare vertical that moved heart, liver, and kidney transplants from country to country in frozen nitrogen vacuumed containers.
     “They have those kinds of dedicated aircraft to lift extremely high value, time-sensitive items. So it’s a question of time before India Post develops its own vertical—if not for moving those kinds of highly time-sensitive merchandise, [then] maybe something lesser than that, say electronic parts.”
Ravi Shankar Prasad     So this time, while speaking in Bengaluru—the headquarters of Amazon—in the presence of Union Minister for Communications and Information Technology Ravi Shankar Prasad, the CPMG mentioned that in the last financial year (ended on March 31, 2014) the e-commerce business had reached Rs 100 cr ($16.1 mn) and would double in 2015-2016.
     “We need dedicated aircraft for the transfer of air mail cargo,” he said, looking at the boom in the air cargo business. Ramanujan went on to add that it was “a great time for e-commerce and we are excited as it is translating into a lot of revenue.” In fact, India Post has not only tied up with Amazon but also with other e-commerce majors like Snapdeal. Amazon, for instance, sent out 7000-odd packages in January 2014. That figure went up to 85,000-odd packages in October 2014.
     The primary reason for the demand of aircraft, according to the CPMG, was that the postal department was not too happy with the services of Air India or the private carriers. For these carriers, perishable goods and human organs were a priority, bringing them high revenues. As a result, shipments booked by India Post were often off-loaded and flown later, causing delays to customers.
It may be mentioned that in 2006 India Post had taken three freight aircraft on lease from the then Indian (Airlines) for a four-year period. That lease ended in 2010.
postal cartoon     Not too long ago, India Post was used by almost everyone: for sending letters, money, and parcels, and the organization also did a fair bit of banking by maintaining accounts of small savers. With its humongous postal network of more than 1,055,015 post offices of which 89.76 percent are in the rural areas, India Post’s reach was literally to the last mile. Today, that reach is paying dividends. As Ramanujan put it, “We will bring all 104 pincodes (similar to the zip code in the US) in Bengaluru under same-day delivery for bookings made up to 2:30 p.m. (India Post’s tie-up with Amazon for same-day delivery has made Bengaluru the first city in the country to have such a service). We have put in the infrastructure and technology. My boys are already doing deliveries up to 9 p.m. every day.” He also emphasized that it was only India Post that could deliver beyond the Tier-I and -II cities. The department’s reach went up to Tier-VI or the village level.
     With Internet penetration in India on the rise, the e-commerce sector in the country is likely to witness a huge growth in the next five years, according to the Economic Survey 2014-15 (the Indian Ministry of Finance’s document that reviews the developments in the Indian economy over the previous 12 months, summarizes the performance on major development programs, and highlights the policy initiatives of the government and the prospects of the economy in the short to medium term).
     “India's e-commerce market is expected to grow by more than 50 percent in the next five years,” the Economic Survey, presented in Parliament, pointed out. The survey also mentioned the hurdles faced by the e-commerce sector: “Inventory management, logistics planning, and resource availability are important hurdles for online retail in India.”
     Aware of the immense potential of the e-commerce sector, towards the end of last year, Prime Minister Narendra Modi initiated a Task Force to find out how India Post could drive up its revenues.      The Task Force, which submitted its report in January this year, recommended setting up a holding company under the Department of Posts to roll out e-commerce services in addition to banking and insurance.
Tirthankar Ghosh

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Vol. 14 No. 29
Air Cargo News For The Day
Keeping Up With FlyingTypers At PVG
HEL Never Looked Better
Chuckles For March 31, 2015
Lise-Marie Liked PVG
Amazon Drones On
Hapag Lloyd Hopes & Loss
The Hahn Smartens Up
Farewell To A Friend
Vol 14 No. 30
Qatar Lights Up Sri Lanka
ABC Easy As 1, 2, 3
Chuckles For April 7, 2015
Rates & Spring Hearten April
April Showers Turkish Cargo
Angela Has Inspired Us All
High Times
Waxing Moon Plane
Everybody Loves A Good Egg
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