The cargo business could not be any more exciting for Saudia Cargo’s Regional Director, Europe, Amer Abu Obeid. He displays an unabashedly broad smile as he contemplates the future.
      “We are putting the finishing touches on our new cargo hub in Frankfurt, beside others,” Mr. Abu Obeid said.
      “I can say without reservation that the air cargo business today is quite dynamic and exciting.”   
      “Of course we cherish our colleagues in Brussels and will continue to go all out to service their needs and exceed their expectations in every way.
      “You know in this business,” Amer smiles, “your business partners include a gallery of different people, freight forwarders and others, and they tend to become friends for a long time.”
        
The TIACA Proposition

      Mr. Abu Obeid was situated inside a beautiful, milk-white Saudia Cargo display at the recent TIACA Air Cargo Forum.
      As the fragrant aroma of Arabian coffee wafted through the area and customers gathered around plates of savory dates and other delights, hosting clients and TIACA conferees was the order of the day in Paris.
      “We know all of our most important customers are here,” Mr. Abu Obeid said at the time, adding “we also get to go face-to-face with our suppliers and our interline partners.”
      “I think the TIACA effort is just fantastic—in fact, we have barely had time to catch our breath during this event,” said Amer.
      “So many venders, customers, and sweet familiar faces that I have known and worked with in different worlds are here.
      “TIACA 2016 really lifts the spirits,” Amer said.

      “We operate Saudia Cargo out of Europe from four hubs: Frankfurt, Amsterdam, Milan, and Brussels,” Amer said, “but we also offer wide body lift from London, Manchester, Paris, and Madrid with 14 freighters weekly.
      “Saudia Cargo offers reliable service where the best surprise is no surprises.
      “What is more, we are growing and investing in our business and are here to stay.
      “I can sign a block space agreement for the next decade.
      “Players come into these markets, stick their toe in the water, and then jump to another adventure.
      “That is not how Saudia Cargo does business.
      “We are investing in terms of people, equipment, and gateways.
      “Our intention is to rise even further amongst the most favorite and dependable cargo resources in the world.”

      The 44-year-old Amer Abu Obeid has been at Saudia Cargo for the past seven years. He is a top cargo professional who moved within the privatized SV Cargo business, first as manager for Middle East, North Africa & Turkey, then commercial director for Saudia Arabia, and then about four months ago assuming the critical and key post at Saudia Cargo as Regional Director Europe.
      Mr. Abu Obeid was born in Jordan.
      He came to Saudi Arabia as part of the DHL team, where he spent a decade moving up through the ranks.
      Before that, Amer got close to the ultimate driver in all of business during his time as a banker.
      “I can say from my experience as a banker and an integrator, where I learned discipline and business manners that I expect to carry for the rest of my life, that it is quite helpful all around to have experienced how things work on both sides of the fence, especially in terms of customer’s needs and expectations.”
      “In a nutshell, we never promise what we cannot do at Saudia Cargo, and in fact, our effort is to bend over backwards to create an open, transparent air cargo product where everybody knows what to expect,” Mr. Abu Obeid said.

      “Being on the integrator side for ten years I always thought that the combination airline people had a much easier life.
      “But that was a miscalculation.
      “Actually, the reality of the market today demands total professionalism every step of the way and complete customer service and satisfaction as well.
      “In that regard, the financial strength of Saudia Cargo and the commitment of top management at the airline to continue to invest and build it’s global air cargo business cannot be underestimated moving ahead.”

      “We made our move to headquarter our European cargo operation in Frankfurt because our customers are here and wanted our immediate attention to their needs.”
      “Action speaks louder than any words and we want to be where the business is.
      “Today, so many entities are pressuring the carriers for better services and lower prices.
      “The forwarders want more services and lower pricing, governments want better security procedures, etc.
      “We put pressure on ourselves to better compete with others. The cycle seems endless.
      “I sometimes wonder, why not lessen the pressure on yields and just let the market dictate its preferences based on service?
      “It is no secret that any solid, long-term business relationship will only endure if customer expectations are met.
      “So why all the fluttering around every time someone jumps in and lowers the rates?
      “Air cargo will endure as it has endured, with a solid business plan, dedicated people, and an expected return on business,” Amer Abu Obeid said.
Geoffrey

     A large sucking sound can be heard in India as more than 15 trillion rupees (the 1,000 and 500 notes) were ruled illegal. Asia’s third-largest economy is experiencing a liquidity crisis.
      The change came November 8, when Prime Minister Narendra Modi announced currency notes of 1,000 rupees ($15) and 500 rupees ($7.50) would no longer be legal in an effort to curb black market activities and terrorism.
      The news sent truckers and express operators scrambling to get to the bank as 90 percent of business in the country is done in cash.
      The banks were not ready. As you read this, most are still unable to satisfy demand as everyone is unloading the notes.
      Trucks were stuck because fuel pumps, tolls, and wayside eateries refused to accept cash payments in 500 and 1,000 rupee notes.
      According to reports, upwards of 90 percent of the country’s million trucks have been affected, with some now parked on highways and roadsides.
      The result? Deliveries of vegetables, food products, and even medicines have been delayed.  
      “The entire supply chain took a punch in the nose,” a source said.
      “The money squeeze is being felt from networks of suppliers and distributors to sales teams. It has spread all over the country as everyone is running short of cash.”
      But while revenues have frozen, fixed costs, including wages, continue.
       
Welcome to The Cash Queue

      Although in many quarters wages are paid online, employees are now faced with needing time away from work to queue at the bank.
      As a result, production is slowing in many places.
      In the understatement of the year, Vijay Kumar, Chief Operating Officer of the Express India Council India (EICI is the body that aims to protect and promote the common interests of Express Industry and its members) said, “transporters should have been given more time to take care of their cash situation.”
      With around 9,300,000 truckers as members, All India Motor Transport Congress (AIMTC) said trucks are stranded around the country and government action is needed at once.
      AIMTC President Bhim Wadhwa told FT that the “sudden ban on higher denomination notes have made drivers stand in long queues before banks in different parts.
      “The withdrawal limit is minuscule, and with ATMs in many places not working or out of cash, the transport business is in crises,” he said.
      “The transport sector is the highest taxpayer to the exchequer, but right now the road transport fraternity of India is facing its worst crisis with the sudden banning of these notes coupled with the inability to get money to replace them,” Bhim Wadhwa said.

      Right now alongside the transportation and other India business, Mr. Ordinary Indian (or Aam Aadmi in Hindi) has been waking up early every morning to try to beat the crowds at his nearest bank.
      With the December 30 deadline looming to trade in the rupees, ordinary Indian people are utilizing some interesting alternatives.
      Current conditions have seen the rise of apps (like one app that shows where ATMs are located).
      A Delhi-based startup called Book My Chotu offers ‘Chotus,’ or errand boys, who will stand in line for you at the ATM for 90 rupees an hour.
Geoffrey

FIATA Yesterday Today And Tomorrow

IATA And FIATA Sign Historic Accord

The FIATA Logistics Academy

     ABX Air, a subsidiary of Air Transport Services Group (ATSG) that handles Amazon and DHL Worldwide Express packages at Cincinnati-Northern Kentucky International Airport, asked a federal judge to force 250 striking pilots back to work after flights were halted on Tuesday.
      In its complaint ABX said 26 flights loaded with 1.25 million pounds of cargo were grounded Tuesday.
      For their part, pilots (who are currently in negotiation for a new contract) said that they were working on forced overtime to compensate for being short-staffed.
      ABX operates 45 flights a day for DHL. Amazon customers will also see delays and disruptions.
      Although the local judge ordered the pilots back to work for the most important retail weekend of the year, this is a big wake-up call to Amazon, which is finding out first hand what it means to own aircraft.
      ATSG recently signed a contract with Amazon to fly 20 Prime Air planes by 2018. ATSG is already flying 14 aircraft (35 flights a day) for Amazon.
      In the meantime, Amazon continues development of its drone robot delivery technologies.
      They may need them.
Geoffrey

     FIATA and The Association of Turkish Freight Forwarders (UTIKAD) do great work together. Evidence of this can be seen in their recent cooperation, which brought a welcome FIATA Freight Forwarding training program and graduation ceremony to Istanbul for the first time on September 16, 2016.
     If you missed the event, fear not. We can all share in the experience via this informative, three-minute video. Click through to hear from participants and instructors as they share their thoughts on the encounter.
     Congratulations to all, and a special “FIATA Fellow” salute to everyone here.
     We also note that Genel Transport (Istanbul-based Logistics and Supply Chain) President & CEO Turgut Erkeskin is a futurist who believes in active, hands-on membership in both FIATA and in the Turkish Air Forwarders Association (UTIKAD), where he volunteers his time giving back to the industry.
     FIATA and UTIKAD get high marks for their best efforts influencing the next generation of air cargo executives through expert training and shared knowledge.
Geoffrey

Vol. 15 No. 90
Logitrans Accents Positive For Turkey
Dimerco Accelerates Worldwide
Chuckles for November 21, 2016ACI Goes Dubai World Central