|Vol. 16 No. 65||
Tuesday August 15, 2017
August’s high summer skies may elicit the desire to kick back and enjoy the hazy, crazy, lazy days of summer 2017, but business must go on.
Summer Falls Back
For us, it is never
too early to ready for a Oktoberfest in Frankfurt (September 27) hosted
by CEO ATC Aviation Services Ingo Zimmer.
The Tiffany Of GSSAs
But there is much more behind the fast rising “Tiffany GSSA” known today as ATC.
Always Takes The Big Picture
For years a tendency
in air cargo has been for airlines to either get rid of their cargo
business completely, or reduce staff to a minimum and employ a General
Sales and Service Agent (GSSA).
Zimmer Is EliteFrankfurt-based ATC Aviation Services is among an elite breed of GSSAs that seem able to think local and act globally at the same time.
Chief Operating Officer Ingo Zimmer says one aspect of ATC’s global success has resulted from offering some or all of the services on his GSSA menu, which has been key to unlocking new opportunities all around.
“Our global group offers any combination of options to airlines—including just sales in Austria, and that’s it, or all European coverage including service disciplines such as ground handling supervision, road feeder services etc.
A Global Offering
“In fact, our
is testimony that carriers from all over the world find utilizing
our services in any number of varieties makes good sense.
Where ATC Gets The Job DoneWe wonder how ATC Aviation Services, which represents airlines from different continents, understands the goings on in each of the trade lanes it serves.
“At ATC, our service teams apply their knowledge and market know-how to supply specialized expertise across our main markets.
“Our global results from this approach have proven to be much more rewarding all around especially as compared to a ‘one size fits all,’ or ‘everyone must conduct business by our set of rules’ approach.
“ATC people who are specialized in routes to the U.S. or Russia and Central Asia, for example, combine thorough market knowledge of the airlines serving these markets and local obstacles with a working understanding of local language.”
Ingo Began As An Agent
is simple, but a major benefit for ATC customers.
date back to 1971 when ATC Air Transport Consultants Ltd. was established
in Switzerland as a charter broker.
ATC – Always Takes Care
New strategies were
introduced based on the corporate slogan: ATC Always Takes Care.
A Lifetime In Air Cargo
Ingo Zimmer took the
classic German apprenticeship as a freight forwarder at Danzas GmbH.
Effective October 1, Swiss World Cargo
realigns the America’s into two regions: Western, Southern USA &
South America and Northeast/Midwest USA and Canada.
Even More Capacity . . . IAG Cargo said it is adding Nashville to its B747-8 freighter schedules beginning in May 2018 with five flights a week.
IAG also plans to increase its daily flights to Philadelphia and Phoenix to ten flights per week as it begins its summer schedules next year.
On Tuesday, Air Berlin said that it has
filed for insolvency proceedings after its main shareholder Etihad Airways
said it "would not provide any further financial support."
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cargo should be able to guarantee shippers an efficient, high-speed,
and transparent service to justify premium rates. But at the moment
LSPs are frequently not able to, according to Rogier Spoel, Policy
Manager for Air Freight at the European Shippers’ Council.
Same Old Song
“What shippers are looking for is something we’ve been talking about for years,” he explained. “The major win for air freight is the time it takes to get goods from A to B. But airfreight often takes six days’ door-to-door to the U.S. or Europe from Asia even though the flight is two days, tops. That means cargo is standing still for far too long, waiting to be picked up and cleared. That process needs speeding up. This is why at the moment shippers only use air freight out of necessity for critical shipments, not as an integral part of their supply chain planning.”
Many of the delays are due to a lack of supply chain transparency that prevents timely pick-up post-customs clearance at the destination airport. “There needs to be a more analytical process so shippers know how long it will take goods to pass through customs, security, and inspection and can plan the pick-up,” he said. “They want to know when exactly they can expect their freight.”
Pathways to Contact
A reliance on traditional forms of communication also compounds delays. “Air freight communication systems are often very old,” he said. “There is too much paper in the system, which is very much open for errors and mistakes. We already have the capability to do a lot more digitally using datasets and exchanging data to get a closed data stream that would help with transparency so you know where freight is. This is very important for temperature-controlled cargoes such as pharma and foodstuffs, but also reduces the administrative burden and speeds clearance at customs.”
Strategies To New MarketsMr. Spoel believes changes in how major shippers strategize future supply chain plans will open up new markets and trade flows to air freight stakeholders—but only if they can adapt to the new demands. “Shippers want more predictability in the supply chain,” he said. “Big multinationals have distribution centers throughout Europe. They import goods that are then moved to DCs and from there they supply shops and customers. If they can cut down DCs, which are expensive, they can make huge savings. But to do that they need a floating warehouse, so their inventory is mobile. They need to be able to rely on air and ocean for this.
“For example, at the moment a big fashion company producing shirts in China ships them to a European DC and then supplies customers and shops through ecommerce. But really, they want to go direct to the shop and customer rather than via their DC. That’s the long-term vision. They’ll still need a DC, but they can cut its size and cost. First, they need that service from the air freight industry so they control the logistics flow of goods accurately.”
Mr. Spoel said cargo
consolidation processes were often the biggest stumbling block, not
least because cargo often disappeared into internal LSP systems during
the crucial period before the flight, removing transparency for the
shipper. “Consolidation is how logistics service providers offer
lower prices and that’s the selling point,” he explained.
“But there seems to be a misconception that creating transparency
will kill the golden goose. As a shipper we don’t want to know
everything the LSP does, but they are protective of what they do.
Case In Point
He said an April workshop organized with telecommunications giant
Ericsson, a member of TIACA, revealed some key findings that could
illustrate to air freight service providers exactly what customers
want—an air cargo data pipeline.
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