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   Vol. 14  No. 70
Wednesday September 2, 2015

Saudia Cargo Ad

Jacob Bang Nielsen

   A Great Dane, his face jumps out of the crowd. We can think of many words that could describe Jacob Bang Nielsen, Senior Manager, Postal Network Optimization & Performance at United Airlines.
   “There's a reason United Cargo moves about half the U.S. Mail,” says United Cargo President Jan Krems.
   You get the picture . . .
   Jacob from Denmark says, "it's all about teamwork. "Our postal department is the best and we show it every day."


Annual IATA DGR Revamp

  It’s early September, the frost is on the pumpkin, and everyone in the air transport food chain is holding his or her breath for the upcoming changes to the annually published IATA DGR.
     System and database admins pray changes can be accommodated in system logic, training managers revamp their training materials, and airlines, handlers, and shippers alike struggle in communicating these changes to their staff in order to prevent rejections of shipments not in compliance with the latest edition.

No Grace Period!

     While changes in the UN Model Regulations will prompt changes in all modal regulations, the maritime sector (covered by the IMO’s IMDG code) has a grace period of one year (meaning the changes which went into effect January 1st, 2015, must be implemented until December 31st, 2015) and ADR (the European road transport framework) still allows for 6 months (changes had to be completed effective June 30th, 2015).
     It’s just the air transport sector—actually the most demanding transport mode—with a DG acceptance document covering any and all packages that do not have a grace period.
     What’s more, while all other modes update in bi-annual cycles, following the UN Model regulations, the air mode doesn’t. Although the legal base, ICAO’s “Technical Instructions for the Safe Transport of Dangerous Goods by Air” is also published biannually, in excess of 98 percent of DG shipments transported by air are prepared in accordance with IATA’s “Dangerous Goods Regulations.”
     For this reason, the biannual task of incorporating a—sometimes more, sometimes less—changed regulatory framework is an annual one for the air transport sector, and has always been.

Changes You Need To Know

     So what’s going to change?
     Actually, not much.
     As it is, IATA (most often in even number years, when there is no new legal foundation document cum ICAO TI) produces a document noting plenty of housekeeping—replacing one term here and shuffling a few sentences there.
     For example, the upcoming 57th edition of the IATA DGR going into force January 1st, 2016, will add a definition for the term “consolidation.”
     Also, the provisions applicable to the carriage of lithium battery-powered devices are clarified somewhat, although an expressed requirement has been added that devices in checked baggage must be secured against accidental activation.
     It is also made clear that so-called “power banks” are not really devices as their primary purpose is to provide power to another device and thus must be treated as stand alone batteries and be moved in carry-on baggage only.
     New to DGR and a dubious improvement at best is the requirement that Dangerous Goods permitted within passenger and crew baggage now appear in alphabetic order within Table 2.3.A (which is summarizing what is permitted within passenger and crew baggage and one of the core documents in the IATA DGR) and the indicator boxes (Yes, No, N/A) have moved from the left to the right.
     More than a few training professionals and airline staff we talked to have indicated that they find the new format of table 2.3.A “irritating.”
     New state variations from Nepal and Venezuela will likely not affect the industry much, but the significant increase in operator (airline) variations, especially regarding total or partially embargoing Lithium batteries, will be something shippers of Lithium batteries will find hard to accommodate and incorporate into their shipping procedures.

IATA Housekeeping Works

     The housekeeping IATA has done with the packing instructions is actually beneficial since it improves structure and adds clarity. The latter is important, since IATA has dubbed their DGR a “field manual of the industry” and such a field manual must be readily comprehensive even to a less seasoned user.

Noteworthy Change

     Probably the most noteworthy change is that IATA moves to prohibiting multiple packagings of devices incorporating Lithium batteries that are not subject to any marking or labeling requirements within the provisions of Packing Instructions 967 or 970 into likewise unmarked overpacks; however, the practice will be tolerated until January 1st, 2016 (unless particular airlines require otherwise).
     It must be highlighted that another IACO DGP meeting is scheduled for Fall 2015, and depending upon whether or not the far-reaching suggestions brought forward by ICCAIA and IFALPA will find a majority of significant and fundamental changes applicable to the transport of lithium batteries may either come in the 58th edition of the IATA DGR for 2017 (in line with the 2017-2018 ICAO TI) or, unlikely but possible, in the form of an addendum.
     FT has already covered what this joint initiative of ICCAIA and IFALPA is about here:

Pack It In

     One clerical change which may have very far reaching implications is a change in Packing Instructions 965, 966, 968, and 969 covering the transport of Lithium batteries as such and when packed with equipment:
     Instead of requiring that “cells and/or batteries must:

  • be placed in inner packagings that completely enclose the cell or battery and then placed in an outer packaging;”

 the 57th edition of the IATA DGR mandates that “cells and/or batteries must:

  • be completely enclosed in inner packagings and then placed in an outer packaging.”

    Although the meaning appears to be identical, some regulators see so-called “blister packs” commonly used to pack retail batteries not as qualifying inner packagings, since where more than one battery or cell is contained in a blister pack, the grouping does not enclose the individual batteries completely, although it does provide the required sufficient protection against short circuiting.

Here Is The Rub

     As mentioned, although the changes in the IATA DGR are minimal and this fact will significantly reduce the workload for trainers, system admins, and other stakeholders in the air transport chain, the 56th Edition of the IATA DGR is in force until midnight of December 31st and the 57th Edition effective 0:00 h on January 1st, which makes the switch from the 56th to the 57th edition without any grace period a significant but well-known challenge (since it is repeated annually).
     To many in the air cargo business, the wonder is why the entire air cargo industry should be required to purchase tens of thousands of manuals at a list price of US$319, and then air-ship these with a certain urgency between October and December.
     Sure, the annual revamp of the IATA DGR is a practice that has been in place forever, but does a practice that has lived for decades, going back before the existence of the ICAO TI (whose 1st edition was published in 1983), need to continue in this form?
     IATA has kept the prices of the 57th edition revamp at the 2015 cost level of the 56th edition, obviously responding to industry criticism that the price hikes in the past were too steep.
     Still, IATA may be well advised to enter a dialogue with all stakeholders involved—which will definitely include the shippers—to move to biennial publication dates, plus addendums and corrigendums issued as required.
     While this may remove some revenue from IATA and resellers, it might free up some funds within the industry that, hopefully, might be spent on industry safety initiatives.
     Looking a bit deeper into the situation of IATA publishing just as longer product cycles have come into reality, perhaps a two-year validity of the DGR would also improve the effectiveness of training and allow stakeholders the ability to devote needed focus on core process items, rather than devoting time and money implementing minimum annual DGR changes.

The Good Work

     It must be noted that IATA makes training (not just limited to the DG sector) available to non-developed nations at significantly less cost and the price of DGR manuals in certain non-developed areas are kept at bay; for example, the price of the Russian language version of the IATA DGR is about half the price of the English version.
     Your move.

WarrenJones090215   Irrepressible Warren Jones may have been down when he suddenly departed IATA Cargo Network Services as president earlier this summer.
   But for Warren, who stands 6 foot four inches tall, down is not out as he comes back big, joining The International Air Cargo Association (TIACA) as director sales.
   It’s all about the upcoming Air Cargo Forum (ACF) TIACA is holding in Paris, France, next October, and the need to make it the overwhelming success it needs to be after a rather lackluster performance at last year’s ACF in Seoul, Korea.
  In Warren, TIACA gets a well-traveled professional who was part of the team that delivered TIACA to Atlanta in 2004, which was arguably the most successful AFC thus far.
   Warren told FT:
  “I am excited about this opportunity. TIACA has a great 40-year history of representing the entire air cargo supply chain. It is a great honor to be working with Doug Brittin. We are already working on programs to enhance the value of TIACA and next year’s Paris ACF will be one not to miss.”
   Go get ‘em “Too Tall Jones”.

Ralf Takes His Leisure

    “Simple and unadorned” is the now familiar brand model for air cargo resource leisure Cargo, which takes over the below-deck capacity of several vacation carriers that otherwise cross-hatch vacation-bound contrails across the sky.
     So while upstairs on the main deck it may be victuals, libations, and party time, downstairs the carrier has a guaranteed steady stream of revenue with leisure, which is fitting in, not showing off very much, and remains profitable as an air cargo enterprise.
     We’re happy to report that leisure Cargo is alive and well and prospering in 2015. We spoke to Ralf Auslaender, who founded the company 15 years ago during the days of LTU. Today, with Air Berlin ownership, he talks cargo and continues to sound upbeat and expansive about Leisure’s future.
     leisure Cargo currently markets cargo space from 18 airlines on an international and regional basis, with strong emphasis on worldwide representation.

Total Cargo Management

    “We are the total Air Cargo Management Experts, providing 18 carriers we represent with full logistical know-how like sales, handling, and road feeder service supported by a well-distributed GSA network worldwide,” Ralf said.
    When he began in January 2000, leisure Cargo was and remarkably still is the only “virtual cargo airline.”
     Without any of its own fleet but having access to the bellies of those aforementioned 18 carriers, leisure Cargo is able to offer its service to upwards of 300 destinations.
    “Our customers include national and international, big and well-known forwarder companies, but also private clients who can rely on a fully dedicated staff at the stations headquartered at DUS airport, and airports FRA, HAM, MUC.
    “By using only one AWB and having access to one reservation system worldwide, leisure Cargo can serve all matter of requests individually and flexibly,” Ralf said.

A Genuine Original
Ralf Auslaender     We like Ralf for his originality and determination, but best of all for his genuine human touch and ability to keep things simple.
     At DUS, where leisure is based, the offices are small and compact and within a five-minute walk to anybody you might want to talk to about anything dealing with air cargo.
     “I like to be able to be hands on in any situation,” Ralf said.
     We were sitting in the leisure stand at Air Cargo Europe last month.
     The leisure enclave was a beehive with folks buzzing in and out.
     It was also a personal place that felt like a sanctuary, a beacon of smiling faces, dear hearts, and gentle people at an otherwise big, impersonal, and at times overwhelming mass event.
     Here the welcoming feeling was advanced by people offering a great deal of warmth and a human touch to the goings on.
     There were of course things to eat and drink.
     But there were also broad, smiling faces from people like Frankfurt-based Ralf Riksen and leisure’s Latin American guru Erik Fraenkel. Also moving in and out of the mix was the brilliant operations wizard Christian Weidner and Karin Rohnstock, the go-to problem solver.
     These are people we have grown to know and love over the years.
     Fortunately for us, they keep sending that feeling right back and the welcome is always genuine.
     At Air Cargo Europe Munich there were big vases full of beautiful, fresh, long-stemmed red roses, available for the taking.
     In the middle of the show somebody remembered a staff birthday, and everyone gathered to sing ‘Happy Birthday’ and eat cake.
     Those are the touches we liked, and leisure never disappoints in that department.
     And looking at the continued years of operation, who can argue that being the nice guys in air cargo doesn’t pay off?

Ralf Auslaender Video


Canada’s 2nd Biggest Airline at leisure

    “We have welcomed Canada’s Air Transat to the leisure Cargo family,” Ralf said.
     Transat A.T. Inc. is one of the largest integrated tourism companies in the world and the leader in Canada’s holiday travel industry.
     The Company, which is headquartered in Montreal, has more than 5,000 employees and 18 business units, all operating in the travel and air transportation industries in Canada, France, the United Kingdom, the Netherlands, Greece, the United States, Mexico, and the Dominican Republic.
     “Air Transat is a traditional holiday carrier that serves Paris/Montreal, London Gatwick/Toronto, and elsewhere.
     “Over the summer they are in Europe to destinations in Spain, Italy, Czech Republic, Hungary, Istanbul, Amsterdam, Brussels, UK, you name it.
     “During the winter the emphasis is to fly south to the Caribbean, Mexico, and elsewhere where it is warm.
     “We have enjoyed growth with Lux Air recently and have also welcomed Estonian Air this month, adding first flights for leisure Cargo from their base in Tallinn.
     “Some of our carriers are by no means giant, standalone networks, but combined with the other carriers leisure serves, we maintain a continued organic growth, offering shippers a global network of possibilities via more than 500 aircraft to worldwide destinations within the leisure Cargo system.
     “We remain quite the lean company, employee-wise; in fact about the same as we were a few years ago (with 65 employees), but we have added some cargo revenue management in Chennai to support our ability to also deal with various administrative demands.
     “For headquarters in DUS I like to have everything right in front of me on one level so we can deal directly and immediately with situations.
     “Customers want answers at once and that is our mission at Leisure Cargo,” Ralf Auslaender insists.
     Mr. Auslaender mentioned that leisure Cargo parent company Air Berlin represents about 35 percent of total throughput of business and that so far there has not been much made of aligning the products of ABs partner companies such as Etihad, saying quickly, “never say never, nothing has been ruled out.”
     “I am sure that there are certain things we can all do together that need to be sorted out down the line,” Ralf said.
     “What leisure Cargo can be a bit proud of is our achievements as a company, which have been reached without any investment since we began as part of LTU 25 years ago in 1990, aside from my salary at startup.
     “For others, building a company like leisure Cargo would be a hugely expensive undertaking, but we did it one step at a time, going from strength to strength over the years.”
     Looking ahead, Ralf sees additional growth.
     “Today markets are expanding for leisure Cargo’s member airlines as bigger aircraft and increased capability to lift air cargo in newer generation fleets have opened opportunities to Latin America and Cuba as well as Eastern Europe and Asia.
     “Are we bullish on the future of leisure Cargo?
     “The answer to that question is an emphatic ‘yes,’” Ralf Auslaender said.


Saudia Back To The Future


Saudia Back To The Future

    It’s a long way from the cargo ramps of dnata at Dubai to a glorious part of the Philippines, and it’s certainly a dream to build and operate a small hotel on that island paradise, but that is exactly what Jean-Pierre (JD) De Pauw has done and to look at the finished product, he managed to do it just right, as far as we can tell.
    People in the business have uttered the wish that “some day I am going to put air cargo behind me and open a saloon or a small hotel” for as long as we have been on the beat.
     But JD, who sat with us a couple years ago, mapped out a plan and did it, after retiring from a career as a top executive—first at FedEx and then building dnata Cargo at DXB.
     And he didn’t do it by himself, either.
     MayLaka is a small boutique hotel and restaurant JD (originally from Machelen-Brabant, Belgium) and his wife Gina (a native from Bunga-Cabucgayan, Biliran) have worked to create for several decades as expatriates from their respective countries and jobs.
     Now they are innkeepers and restaurateurs living in MayLaka in Barangay Catmon in Naval, Biliran.
    “I am now a retired old man living the beach bum life in the Philippines.
     “MayLaka is completed and we opened up last month,” JD said.
     “It’s a very exciting yet quite relaxing life after air cargo, although I cannot say we might not talk some old times when someone familiar washes up here.
     “Still reading your FlyingTypers, you know,” JD said.

If You Missed Any Of The Previous 3 Issues Of FlyingTypers
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Vol 14. No. 67
Doldrums? China Southern Rebound
What is a Package?
Chuckles For August 19, 2015
India Agents Push Domestic Agenda
Dreams and False Alarms

Vol. 14. No. 68
Tallinn Revolution
Dr. Alexis Makes A House Call
Chuckles For August 25, 2015
Raise High The Roof Beams
American Airlines Cargo On The Beam

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