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   Vol. 16 No. 20
Monday February 27, 2017

Zhao Huxiang

  When current FIATA President Zhao Huxiang was elected to his two-year post in 2015 he readied to assume command of the giant global organization as the 54th FIATA World Congress met in Chinese Taipei.
     Mr. Zhao, who hails from Beijing where he serves as Chairman of the giant, 50,000-employee strong SINOTRANS, is the first President of FIATA from Mainland China.
     Mr. Zhao moved to that exalted post during FIATA’s World Congress in Chinese Taipei, speaking volumes about the organization. It points to a dynamic FIATA moving boldly into change that continues to accelerate during the opening years of the 21st century.
     “Becoming FIATA President is a long process involving time and attention for several years, and is the result of CIFA’s enhanced cooperation at the international level, of which I am particularly proud,” Mr. Zhao said.
     “Being fully involved with the many projects and aspirations that my predecessors have initiated has been both challenging and rewarding.
     “We have a vast policy agenda and we are successfully working on it, and despite limited resources, we have the future of FIATA in our minds and our hearts,” Mr. Zhao said.


The China Card

     Make no mistake about it, China is still the place everybody wants to be: it’s home to the world's second largest economy and is the world's number one exporter.
     Often, when there is talk about China’s logistics (in the west, at least), the conversation will center on international firms, including leading brand names like FedEx, UPS, DHL, and others.
     According to the latest figures available 18.6 percent (or $1.6 trillion annually), China accounts for the world's biggest logistics action, with growth of over 20 percent in just the past 4 years for a compounded annual growth rate of 6.69 percent.



About SINOTRANS

     If you are not aware of Chairman Zhao’s SINOTRANS, you should be.
     The China state-owned company was founded in 1950. Headquartered in Beijing, People's Republic of China, it is the largest comprehensive logistics service supplier in China.
     As mentioned, with more than 50,000 employees and growth into every facet of logistics at home and around the world, SINOTRANS is a great example of why the Chinese logistics market is the biggest in the world.
     Not only is the market huge, but the infrastructure for supporting logistics companies is top notch.
SINOTRANS includes air, land, and sea freight forwarding, shipping, storage, terminal, and supply chain operations, and a menu of services that match and even exceed those of its international competitors.
     In fact, according to Armstrong & Associates, a supply chain market research and consulting firm, SINOTRANS ranks among the top 10 third party logistics providers in the world.
      Perhaps more importantly, SINOTRANS is doing well despite the global economic downturn.
Margins of SINOTRANS’ logistics sector continue to head straight up, with the net profit margin being 4.3 percent for 2015, an uptick from the previous margin of 3.3 percent.

Zhao Huxiang FIATA quote


FIATA Windfall

     How this distinguished gentleman is able to serve his giant company and also shoulder the global responsibilities of the Presidency of FIATA—the largest trade association representing freight forwarding and logistics firms along with affiliated national associations in the world—is simply something at which to marvel.
     In Dublin as FIATA President in 2016 during the organization’s milestone 90th Year Celebration, he said simply:
     “FIATA welcomes everybody in spirit and cooperation.
     “I am not initially a freight forwarder, but rather someone from a shipping company.
     “It might be difficult to imagine how a Chinese man became President of FIATA, but the organization is truly international and global in scope and is well prepared and most importantly in touch with the world market of today and tomorrow,” Mr. Zhao said.
     “I became involved with FIATA a decade ago via membership and my eventual move as Chairman of the Chinese International Freight Forwarders Association.
     “In China today there are more than 35,000 registered freight forwarding companies,” Mr. Zhao said.



Goals and Vision

     “I think we can provide more and better services, clearer guidelines to better cooperation, and best practices for our membership and the logistics industry.
     “We have people at our meetings that come from all over the world and yes, as far away as China, to meet and try to find better ways to (for example) handle and guarantee safe movement of dangerous goods.
     “There are very complex issues and much is at stake here.
     “But the FIATA venue and spirit of détente that prevails amongst our membership and guests is quite a credit to everyone.
     “FIATA is dialogue and cooperation and impartial at its base, and that affords the opportunity to look into many complex challenges and find solutions.
     “Our solutions and cooperation connect the world. In the case of China, these connections are vital to the rest of the world.
     “For example, my company relies on FIATA to provide us the middle ground to meet and get to know the rest of the world.
     “That is why it is such an honor and pleasure to work with and be among the leadership of this great organization,” Zhao Huxiang said.
Geoffrey



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Why FIATA Matters


Trump Effect Part 2

     The first 38 days under President Trump have made it obvious that this President will do everything possible to maintain his campaign promises, which are basically increasing the security of the U.S., growing the U.S. economy (and hence jobs), and rebuilding the U.S. infrastructure.
      In this article, I will continue focusing on what I see President Trump doing to grow the U.S. economy and jobs and how that will affect the airline industry. In the past year, China’s economy has surpassed the U.S., and many economists predict India will surpass the U.S. by 2040. That may look like a long time off, but when you are attempting to restructure the U.S. to prevent this, it is tomorrow.
     President Trump has committed to favor products produced in the U.S. and help grow businesses in the U.S. He is looking at reducing cumbersome U.S. government regulations, reduce taxes on companies, reeducate U.S. workers, give jobs to people legally in the U.S., and negotiate fairer trade agreements among other countries. The U.S. stock market obviously believes he can do this.
      To U.S. airlines, the question is whether these policies support their growth. Obviously, U.S. combination carriers will benefit, but what about the carriers dependent on the movement of cargo? The one bright spot I have seen over the past few weeks is that this new administration understands the positive value of trade on the U.S. economy. While they appear to be against multilateral trade agreements, they appear to be embracing bilateral trade agreements. Bilateral agreements are nothing new to the airline industry and in fact they can be extremely beneficial.
     What company wants to deal with, say, 10 vendors under one agreement? As business people we all know the downside of these multilateral agreements. So will these bilateral trade agreements increase the movement of air cargo to and from the U.S. and beneficially increase the movement of air cargo?
     We have already seen discussions with England, Japan, and Canada and there is confusion on what his “One China” policy means. But the big question is whether President Trump can get the cost of U.S. goods low enough, with his incentive plans, to be competitively priced globally within these agreements. If he can do that while improving the U.S. economy—providing more good paying jobs for U.S. workers and increasing the value of the U.S. dollar—then everyone is a winner.
Bill Boesch

Bill BoeschMr. Boesch started his career in global transportation and logistics in 1965 working for Seaboard World Airlines. He later joined Flying Tiger Airlines and Emery Worldwide. Mr. Boesch then left Emery to become Pan American World Airways’ Senior Vice President where he headed both Passenger and Cargo Sales and Operations. He left Pan Am to lead American Airlines’ Cargo operation and retired from AA in 1998. Under his direction American became a world leader in the air cargo and logistics business.
     Mr. Boesch was involved in projects for the U.S. Government throughout his airline career and became more active after retiring from AA by serving as Director of U.S. Aviation Policy for the White House Commission on Aviation Security. He also has worked for the U.S Government in high level logistics and security projects which included terrorist attack planning and analysis. Mr. Boesch was part of the extensive on site planning and support of the Iraq drawdown, involvement with the Afghanistan operations, and has worked on all aspects of the Civil Reserve Air Fleet (CRAF) from both an airline and government standpoint.
     Mr. Boesch has also served as Chairman of the International Air Transport Association (IATA) Cargo Executive Subcommittee in 1996 and 1997, Vice Chairman of IATA’s Cargo Committee. Mr. Boesch served on the Board of Directors of Air Cargo Incorporated, Air Cargo International, The International Air Cargo Association (TIACA), Envirotainer, Cargo Logistics Solutions, Deutsche Post/DHL Global Mail, al Seqir and consulted for major U.S. companies including Flight Safety.
     Mr. Boesch is the recipient of numerous awards including the Lifetime Air Cargo Achievement Award, the Ellis Island Medal of Honor and various awards from the U.S. Department of Defense.
     Mr. Boesch is presently continuing his work for the U.S. Government and heads up The Council For Logistics Research.

To Read Part 1 of This Series, Click Here .
To Read Trump Effect—India Walks Softly Carries Big Stick, Click Here
To Read Trump Effect—Implications Of A Trump Trade War, Click Here


Chuckles For March 3, 2014

Georgia World Trade Day

     The innovative one-day Annual World Trade Day event in Atlanta is briefly available for only $99. The Early Bird Pricing ends tomorrow, February 28.
      The World Trade Center of Atlanta at Georgia International Convention Center hosts the 1st Annual World Trade Day on May 7, 2017. The event looks to be a soup-to-nuts affair that includes a networking breakfast, morning sessions, and continues through the rest of the day with some deep dish looks at emerging markets, a discussion of risks versus benefits, global trends, the growing relationship between government and business, and more.
      A luncheon panel will discuss North America maintaining a competitive advantage in a volatile global economy.
      The afternoon program at this 1st Annual World Trade Day will include several breakout sessions all neatly arranged to bring everyone back together for a “Dessert Session.”
      We like that the closer for a daylong avalanche of smart thinking and bright ideas is a bit of dessert. As they say, especially apropos in this oft-volatile business climate roiling in a time of political change: life is uncertain, eat dessert first.
      No drinks; no late-night dinner; just a wonderful opportunity to learn something and have your cake and eat it too.
      After “Advanced Manufacturing: The Impact of Technology and a Changing Workforce on Company Competitiveness; Digital Technologies: How Disruptions Lead to Opportunities; Energy Solutions: Creating New Markets” how sweet it is to dive into a slice of Georgia pecan pie.
      Your move… Sponsorship and/or exhibitor opportunities: diane@marketaccessintl.com or call
404.374.7682.
Registration: www.worldtradeday.com 
Geoffrey


Great Airports Worldwide

Miami Qatar Ribbon Cutting

     The twice-weekly Qatar Airways B777F freighter service into Miami we reported on February 1 may need only two people on the bridge to fly it, but five of the willing made sure the new service received a proper welcome here.
     Pictured from left as the service commenced on February 2: Emir Pineda, Miami-Dade Aviation Department (MDAD) Manager, Aviation Trade & Logistics; Joe Napoli, MDAD Chief of Staff; Ken Pyatt, MDAD Deputy Director; Ian Morgan, Qatar Airways Vice President Cargo for Americas; and Emilio T. González, MDAD Director.
     “Our recent launch of a freighter service to new destinations across the Americas is another successful start-up for Qatar Airways Cargo and we are grateful to the local authorities and customers for their immense support,” said Mr. Ulrich Ogiermann, Qatar Airways Chief Officer Cargo.
Geoffrey


Subscription Ad

   ATC Aviation Services tops Africa, landing Air Seychelles as its GSSA in Germany.
   Air Seychelles Business Development General Manager Freddy Karkaria and ATC Aviation CEO Services Ingo Zimmer are pictured from left as the deal was signed at Air Cargo Africa this week.
   On March 31, Air Seychelles launches A330 bi-weekly round trips from Düsseldorf to Mahé.
   Fast-growing ATC Aviation Services is in Frankfurt, Germany, with 35 offices in 15 countries and a worldwide portfolio of more than 70 airlines.
More: www.atc-aviation.com
Geoffrey


Mardi Gras Float

   Tomorrow February 28 is “Fat Tuesday” in many parts of the world, with celebrations including a series of big Mardi Gras Parades in cities across the U.S., ending the last day before the beginning of The Lenten Season that leads up to Eastertide.
   But tradition cannot be ignored and with a full slate of air cargo events looming all during the month of March, we will declare a time-out and enjoy the music Tuesday.
   Then on Ash Wednesday we will give thanks and pray for good things to come.

Geoffrey


If You Missed Any Of The Previous 3 Issues Of FlyingTypers
Access complete issue by clicking on issue icon or
Access specific articles by clicking on article title
FT120616Vol. 16 No. 17
The Emirates Difference Takes Hold
Chuckles for February 15, 2017
The Trump Effect: India Walks Softly, Carries A Big Stick
FT120616Vol. 16 No. 18
FIATA Talks World Trade 2017
Chuckles for February 21, 2017
Africa Is A Multinational Opportunity
Delta Africa Begins Second Decade
Africa Rising

FT120616Vol. 16 No. 19
"Unstoppable" United Cargo Saddles Up For The Long Ride
Chuckles for February 23, 2017
Weekend View
Implications Of A Trump Trade War
Worlds Of Discovery
President's Day

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