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Geoffrey FIATA Fellow
   Vol. 15  No. 41
Friday May 27, 2016

TNT 70 Years In 70 Seconds

     The FedEx acquisition of TNT Express for €4.4 billion this week combines the 43-year-old, Memphis-based powerhouse with the iconic 70-year-old Hoofddorp, Netherlands, based company.
      Apparently UPS, a TNT suitor, vigorously opposed the takeover.
      The deal (in Europe, at least) strengthens FedEx’s hand as it attempts to take on Deutsche Post AG’s DHL and, of course, archrival UPS.
      FedEx emerges as a company with 400,000 employees, but the TNT Express brand will soon disappear from view forever as another storied transportation brand bites the dust.

TNT In Rear View

      Looking outside the window, the most noticeable change will be the absence of TNT-branded aircraft, as the fleet of 35 freighters (along with 580 employees) move to ASL as part of an EU-mandated provision of the merger.
      ASL is a Dublin, Ireland, based company whose airlines operate a variety of scheduled, ACMI, and charter passenger and cargo flights.
      ASL has a deal to continue operating flights for FedEx and said it would honor the terms of employee contracts.
      TNT’s days as a stand-alone company have been numbered for some time now as the company has been in play since March 19, 2012, when UPS said it would acquire TNT Express for $6.7 billion.
      That deal fell through in January 2013 after it was announced that UPS failed to obtain permission from the European Commission and as such had been blocked on competition grounds.
      On another front, there were some interesting observations by UK-based delivery company parcelhero’s Head of Consumer Research, David Jinks, who told the online publication Post & Parcel that the FedEx takeover of TNT Express could impact the market for “ugly freight,” a TNT Express special market focus.
      “TNT is very popular with users shipping large and heavy deliveries,” Jinks said.
Ken Thomas       “Many carriers have restrictive parcel size and weight restrictions, but TNT has significantly greater flexibility on the size of packages it accepts, operating bigger vehicles than other carriers, generally with tail lifts capable of loading pallets and heavy parcels.
      “FedEx, TNT Express’ new owners, are specialists in international delivery services but have no culture of supporting ugly freight to any extent.
      “If TNT Express is steered away from such items as part of FedEx—and it’s undeniable that they do require more investment and expertise—the loss of these services would be keenly felt.”
      TNT began in Australia after World War II, when Australian Ken Thomas set up Thomas Nationwide Transport (TNT) with a single truck.
      Today TNT Express is one of the world’s largest express delivery companies.
      On a daily basis, TNT Express delivers close to one million consignments ranging from documents and parcels to palletized freight. The company offers road and air delivery services in Europe, the Middle East, Africa, Asia-Pacific, and the Americas.
      TNT Express delivered €6.9 billion in revenue in 2015.
Geoffrey


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Undeclared DGR Via Ebay

Internet auction platforms certainly have changed the way we live, value things, and sometimes even how we make a living.
     Instead of letting that old laptop or cellphone gather dust, you sell it on e-Bay. And when you need a spare part for your 1950’s to 1980’s collectible car, chances are it can be found for less on e-Bay or some other auction platform—hence the e-Bay slogan, “if it exists in the world, in can probably be found on e-Bay.
     For many people, e-Bay is a part of their daily life, generating additional income from selling and cutting down on expenses by buying for cheaper via the global village store.
     There is, of course, nothing wrong with that, quite the contrary.
     Truth be told, e-Bay has also done an admirable job of rooting out sales of counterfeit brand items, pirated software, and illicit goods, like products made from protected species (such as ivory or some fur coats), weaponry, explosives, and other merchandise that require strict controls.


Here’s The DGR Rub

     There seems to be one problem auction platforms such as e-Bay may have overlooked:
     The simple fact that many articles and substances in daily use fall under the Dangerous Goods Regulations/Hazardous Materials Regulations and may not be shipped without proper training, packing, marking, labeling, and documentation.
     In particular, it should be noted that by law international mail allows almost no Dangerous Goods shipments (with the exception of certain diagnostic specimens either classified as UN 3373, Biological Substance Category B, or Exempt Human/Animal Specimen, Dry Ice as a coolant for UN 3373, certain so-called “Excepted Radioactive Packages” with extremely low limits [Certain smoke detectors fall under that classification] and, only where so authorized by the Civil Aviation Authority of the departure state, “small” Lithium metal batteries [containing 2g of aggregate Lithium or less] or Lithium-Ion batteries [100 Wh or less].)
     These small batteries are never permitted in airmail shipments unless installed in equipment, e.g. a laptop or tablet computer with a battery installed.
     And while e-Bay offers plenty of information regarding the “e-Bay code of conduct” with the dos and don’ts for both sellers and buyers, including the regulations applicable to certain merchandise and unwanted or illegal practices, the one issue that gets little to no coverage is the ever pressing topic of dangerous goods.

Ebay China
DGR In The Mails Actioned

     In a notable joint effort of the very proactive HKG CAA, Hong Kong has created an outreach to local forwarders and GHAs. It follows that carriers including CX have seriously minimized movement of undeclared DG in airmail and cargo as well as in baggage carried by some merchants to neighboring countries.
     Also in the UK, strict application of the regulations and a trained workforce of the UK Royal Mail (which permits certain “consumer commodities” in domestic mail) have considerably reduced the problem of undeclared DG in mail and courier services.


Gefahrgut Lost In Translation

     While it is true that China and Hong Kong sellers are much less omnipresent on e-Bay with offers to ship cheap, undeclared DG anywhere, Germany still seems to be a safe haven for anything not in compliance.
     We found a used steering wheel with airbag for 85 Euros (US $96.81) plus 6.90 Euros (US $7.89) offered with shipping by DHL Small parcel.
     There is no indication that the 6.90 Euro shipping price includes approved packaging for Class 1 explosives, which is what an airbag contains. While it is true that most airbags can be reclassified to Class 9, that reclassification would require such packaging to withstand the so-called bonfire test, which realistically, in this price range, is highly unlikely.
     Lithium Ion batteries of any kind—for laptops, cellphones, remote controls—are also available for much less on e-Bay than in brick-and-mortar stores.
     The German seller “handywest” has 153,640 transactions and offers free shipping by Deutsche Post. “Elektrocell-com” from Vienna also ships for free by Deutsche Post, as does seller “mobilschleuder,” who is offering a Li-Ion battery for Samsung Note III said to be “Original”—for 9.99 Euro (US $11.38). The same battery sells on the German Samsung website for 29.90 Euros. A non-representative test purchase of 12 aftermarket batteries for the Samsung Galaxy 4 by the German computer magazine c’t in 2015 yielded that 12 out of 12 batteries were fake and thus never underwent the required safety testing.
     E-Bay’s website has plenty of information about shipping. But to make the point again, the term “Gefahrgut”—German for “Dangerous Goods”—is nowhere to be found.
     And one thing you will not find in any German post office is posters or fliers informing the public about the hazards of shipping DG by mail—quite understandable, since none of the staff has been trained in recognition and handling of undeclared DG.
     As mentioned earlier, e-Bay has been quite proactive to find—and eliminate—auctions with pirated software, Lacoste polo shirts for 3.00 Euros and Louis Vuitton handbags for 25.90 Euros have been eliminated. Undeclared Dangerous Goods seem to be not on their radar.


All Talk?

     While the talk at this year’s IATA WCS centered on willful, non-compliant shippers, the risk their goods mean to air transport, and how to identify and eventually prosecute them, here is an exercise that should help illustrate the scope of the DG challenge:
     Just go to www.ebay.de, and surf the site.
     Your move.
H. Amburger


FlyingTypers Coverage on Lithium Batteries
All About Lithium   02/24/16 Pilots Want Lithium Cargo Revamp    05/29/15
Lithium Ban Enacted 02/24/16 Lithium Shippers Options Narrow    04/28/15
ICAO ANC Will Outlaw Lithium   02/17/16 Taking Control Of Lithium Shipping    12/19/14
Recharge Lithium In 2016   2/03/16 What About Lithium Data Loggers    07/24/14
Charge Of The Lithium Transports   11/19/15 UK Blasts Lithium Metal Batteries    06/24/14
Assault On Batteries Fails    11/09/15 ICAO Nixes Lithium Metal Pax 2015    04/22/14
A Midsummer’s Lithium Dream    08/17/15 Lithium Sparks Dreadful Report 08/01/13
ICAO DGP Advances Lithium Question    06/29/15  

Chuckles For May 26, 2016


MIA BRU Puts Pharma On Ice MIA BRU Puts Pharma On Ice  Miami and Brussels cargo facilities have been designated pharmaceuticals freight hubs, which means the two gateways have passed a Pharma Certification Program verifying high-value, temperature-sensitive drugs and medicines are transported in accordance with global best practices according to IATA.
   So now BRU and MIA are taking things a step further by pledging to cooperate their pharma cool-chain activities.
   “We look forward to collaborating with our colleagues in Brussels to expand both of our pharma trade networks,” declared Miami-Dade Aviation Director Emilio T. González (left).
   “The organization will be content-focused, developing solutions and creating transparency in very close cooperation with MIA and the pharma industry,” adds Steven Polmans, Head of Cargo Sales and Marketing at Brussels Airport.
   Stay Tuned . . .

Air Cargo News 40th Anniversary Issue



How Women Power Unisys Cargo

Hot Wheels of Summer… The winner of the first Memorial Day Indianapolis 500 Motor Car Race in 1911 was Ray Harroun, driving his No. 32 Marmon Wasp.

      “All types of cargo thieves, whether organized or not, are very active during the long Memorial Day Weekend,” said Cargo Security Alliance this week as the big U.S. holiday approaches, adding:
      “Theft activity (be it a burglary of a warehouse or theft of a transportation conveyance) can increase as much as 40 percent over non-holiday periods,” CSA advises.
      Headlines from a recent report produced by BSI (British Standards Institution) claimed $56 billion in cargo losses in 204 countries worldwide last year (2015)—while true in total, the claim should be deconstructed a bit to show that actual supply chain losses from cargo theft were $22.6 billion.
      That number is certainly nothing to sneeze at, but so-called “Acts of God,” namely global weather events, were the loss-leader culprit, effectively driving that number up by $33 billion and thus accounting for the major portion of the near $56 billion in reported.
      In terms of what air cargo as an industry might do (in addition to battening down the hatches when the weather turns nasty), Pharmaceutical Cargo Security Coalition (PCSC) offers this free security refresher as the summer season of long holiday weekends begins.
      We take a break next Monday to celebrate Memorial Day. The day was originally set aside to honor all the soldiers and others that served in the American Civil War (1861-1865). Today Memorial Day headlines a big auto race—The Indianapolis 500—while elsewhere beaches, amusement parks, and national parks open up nationwide for Summer 2016.
Geoffrey

On Monday, May 30, Josef Newgarden will be in Speedway, Indiana, representing the United States as the 100th Indianapolis 500 auto race opens Summer 2016.


If You Missed Any Of The Previous 3 Issues Of FlyingTypers
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Vol 15 No. 38
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Lightbox: THY Cargo At 80
The Turkish Way
Coming In 17

Ain't Lion—Glad To Retire
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FT051816Vol 15. No. 39
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Chuckles For May 18, 2016
Spargel Zeit Asparagus Time Again
Field Of Dreams
Summer Waiting In The Wings

FT051816Vol 15. No. 40
UPS & SAP View Future In 3D
Women in Charge: How Women Power Unisys Cargo
Chuckles For May 23, 2016
Same Day United Matters
Watch The Birdie At A Golf Outing

Publisher-Geoffrey Arend Managing Editor-Flossie Arend
Film Editor-Ralph Arend Special Assignments-Sabiha Arend, Emily Arend Advertising Sales-Judy Miller

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