17 No. 49
August 8, 2018
pulled a rabbit out of a hat when he added
Platinum Cargo USA to the ATC brand a few
years back. Now Ingo Zimmer does it again
in Summer 2018, adding Grupo PFS (Pacific
Feeder Services), a leading GSSA in Latin
America. Pictured at the signing, left to
right—Ingo Zimmer, CEO ATC Aviation
Services; Alex Thiermann, Founder of GrupoPFS;
Mark Thiermann, Managing Director of GrupoPFS.
Big news this
summer as ATC Aviation purchases Pacific Feeder
Services. Joining forces will create a seismic
shift in the GSSA landscape in Latin America.
To hear ATC
CEO Ingo Zimmer tell it, the pair has created
“the perfect symbiosis for the South
1993, GrupoPFS (Pacific Feeder Services) has
been a leading GSSA in Latin America with
offices in Chile, Peru, Bolivia, and Colombia.
a turnover of €350 million in 2017 and
200 employees in 20 countries, ATC Group (member
of World Freight Company) is one of the leading
GSSAs in the world today,” Mr. Zimmer
Years To Create
The deal, which
was in negotiation for over the past 3 years,
was signed last week in Santiago de Chile
by Ingo Zimmer and Mark Thiermann (Managing
of PFS by ATC combines the strengths of both
companies and increases global presence,”
Mr. Zimmer told FlyingTypers.
we will achieve strong and complementary positions
in South America’s key export markets,
creating a broader and more balanced portfolio.
purchase is a further step to complete our
mission to become the world leading cargo
GSSA,” Ingo Zimmer added.
Operate Under ATC Umbrella
ATC are now one combined company in South
America,” said Mark Thiermann.
direct all our efforts towards ensuring that
our customers will benefit from our new group.
customers of PFS will hardly feel these changes,”
Mr. Thiermann added.
and experienced team will remain at their
disposal and continue business as usual.
addition, customers will benefit from the
strengths and reliability of both companies
in the future, as well as through the international
network with branches in Europe, USA, Canada,
Africa, and Asia,” Mr. Thiermann said.
a transition period of one year, PFS will
operate under the globally recognized name
of ATC,” Mr. Zimmer said.
the transition has been completed, the partners
will have a joint presence in the market.”
Landscape Takes Shape
by ATC Aviation Services/Pacific Feeder Services
in South America are: Aeromexico, Aerolineas
Argentinas, American Airlines, CAL Cargo Airlines,
Cargolux Airlines, Ethiopian Airlines, GOL
Linhas Aereas, Silkway, Korean Air, Peruvian
Airlines, Tame Airlines, Saudia Cargo, Royal
Air Maroc, and Solar Cargo.
ATC Building World Brand
expansion of international business with a
forward-looking portfolio is the continued
focus of ATC Group,” Ingo Zimmer concluded.
More : www.grupopfs.com
than expected June is being followed by a
busier mid-summer for global air freight with
signs, that rates out of some Asian origin
hubs are now picking up, writes SkyKing.
Freightos, in late July, as container freight
rates were starting to surge ahead of the
peak ocean shipping season, air freight rates
remained, stable for a third straight week
although “promotional pricing is finally
years, promotions start in the early summer,”
reported the freight digitalization specialist.
because airlines return larger planes to Europe
and add more flights catering to the increased
passenger demand. That boosts air freight
capacity too, but at a time when demand is
weren’t any promotions earlier this
summer - with tighter capacity than previous
years, there was no need. However, they finally
kicked off two weeks ago, when several big
airlines began promotions.”
general and express rates on 26 July on the
China-U.S. lane were in the $2.90-6.0 per
kg range, on China-Europe they were fluctuating
between $2.80-6.0 per kg, while on on Europe-U.S.
the range was $1.60-3.0 per kg.
August Space Squeeze
TAC Index had
more specific lane pricing details, with Hong
Kong – Europe rates up to $2.88 per
kg on 30 July, a gain of 5.1% week-on-week,
but Hong Kong – North America rates
down 2.8% to $3.90 per kg.
In the first
week of August, space tightened ex-China and
rates were slightly higher ex-PVG, while the
Hong Kong-U.S. lane was picking up but no
backlogs were evident, according to Flexport.
a different matter. “Rates continue
to increase as demand, particularly to the
U.S. continues to rise. Demand ex-Vietnam
to the U.S. East Coast is especially high.
For any shipments with a strict deadline please
request express service,” the U.S.-based
predicted rates from Italy to the U.S. would
increase during the August summer holidays
and reported that ex-U.S. rates were climbing
with space into South East Asia and Mainland
China “very tight ex-LAX”.
expectations are still high for the second
half and into the end-of-year peak season
as the strong demand seen in the first six
months is expected to continue,” it
rapid volume expansion experienced by air
freight stakeholders last year, 2018 has still
managed to yield healthy year-on-year cargo
growth on most trade lanes and, although the
myriad threats posed by the U.S. administration’s
tariff war could impact trade flows later
in the year, the outlook remains strong.
A host of forwarders’
second quarter results noted improving air
cargo volumes and returns, so it came as something
of a surprise to many when global volumes
of air freight as analyzed by WorldACD revealed
little year-on-year growth in June.
to happen one day, or rather one month,”
said WorldACD’s latest report. “June
2018 was that month: for the first time in
two years, air cargo's worldwide volume growth
stagnated as the year-on-year increase for
the month was a mere 0.4%.”
End Of Days
noted, however, it was hardly the End of Days
given that the first half of 2018 had yielded
impressive growth of 3.7%. “Our industry
is clearly divided when it comes to the prospects
for the second half of 2018,” it added.
“On the one hand, we read optimistic
prognoses from some of the big forwarders,
based mainly on what they see as a continuing
capacity squeeze. On the other hand, people
get worried about the future negative effects
of the trade policies - real or only tweeted
- of the unpredictable man in the White House.”
As a result,
concluded WorldACD, June results may not be
the best indicator for the rest of the year,
although it also noted that business from
Asia Pacific to the other regions declined
-0.1% in June compared to a year earlier,
and air cargo from the origins Africa, Europe
and the Middle East also contracted.
so mixed as to what impact tariffs had on
June figures – the first tranche of
U.S. tariffs on U.S. goods were imposed on
July 6– WorldACD also noted that exports
by air from China to the USA dipped considerably
this market had been sub-par for the full
first half year of 2018 already (-2.9% YoY),
the June figure of -5.9% YoY could be indicative
of a worsening climate between the two economic
powerhouses,” it added, although it
also made the valid point that China to Europe
was also negative in June (-2.9% YoY).
Up Your Crystal Ball
to tell what results will be reported for
July onwards, when the first tariff increases
may start to bite. To us, the world of air
cargo looks fairly uncertain at the moment:
for once, to predict the future it may be
just as helpful to read the tea leaves or
to gaze into a crystal ball.”
also looms over the second half of the year
for air freight, at least for those active
in U.S. markets.
reported in FlyingTypers, the repercussions
of the new electronic logging device (ELD)
mandate for trucks alongside driver shortages
continue to impact air cargo providers. “Higher
trucking rates, delays, and even modal switches
are some of the negative consequences for
air cargo,” said Flexport.
The Road Jack
With the 2017
capacity constraints for air freight still
fresh in the minds of forwarders and shippers
and many looking for guaranteed uplift space
throughout the year or chartering their own
planes, the squeeze in 2018, at least in the
U.S., could well come on the roads.
early will be vital in Q4.
Team—(l to r), Eduardo Del Riego,
CEO; Thomas Vieweg, Vice President Business
Development; Leo Hanon, Executive Vice
President and Juan Dieppa, COO
is no secret in 2018 that the Air Cargo industry
is a key enabler of the global economy and
has grown to 35% of global trade by value.
proven successful multimodal technology company,
established in 2009 by industry entrepreneurs
and funded by key family offices and investors,
has been very successful in disrupting the
transportation industry by revolutionizing
urgent payment processes to facilitate expediting
was initially focused on the maritime sector,
and then continued with rail, warehouse, air
cargo handlers and most recently aviation,
with specific programs for inbound air cargo
Cargo In The Air
Riego, PayCargo CEO, identifying the dynamic
contribution that the PayCargo platform could
provide towards IATA’s cargo strategy
and industry priorities, felt it made good
business sense to pursue a strategic partnership
with Cargo Network Services Corporation (CNS),
IATA’s US Cargo subsidiary. Thus, in
2015 discussions were initiated with CNS to
investigate collaboration opportunities to
better serve the airlines and their industry
partners, with a specific focus to help IATA
and CNS with their objective to modernize
industry processes, including the shift away
from cost prohibitive payment processes such
as checks, vouchers, cash, and credit cards.
its wide network of payers, and CNS with its
mission to assist the airlines and their cargo
business partners with improved technology
and paperless processes, proved to be a natural
fit, leading to a long-term Partnership Agreement
that was signed in November 2017 to roll out
an enhanced version of the PayCargo Urgent
Payment System, as a new co-branded PayCargo-CNS
urgent payment portal, which was launched
at the end of 2017.
In an attempt
to further strengthen the partnership, PayCargo
hired Leo Hanon, who served as the Head of
IATA’s Americas Service Center in Miami,
to lead the new PayCargo CNS program. Leo
joined PayCargo as Executive Vice President
in February 2017.
Leo’s appointment, PayCargo Chairman
Larry Brandt, invited Lionel van der Walt,
who previously served as CNS’ President,
to join the PayCargo Board. Larry noted that
this was another strategic move to strengthen
PayCargo’s ability to better understand
and serve their new partners (IATA and CNS)
as well as the broader air cargo sector. He
went on to explain that Lionel would replace
a board member that was stepping down to run
PayCargo’s European activities, and
that with his knowledge, experience and network,
Lionel’s appointment was a win-win for
PayCargo, IATA and CNS.
It seems CNS
has found themselves a great partner in PayCargo.
No doubt this has been a bold move to consolidate
a strong team of entrepreneurs and business
visionaries that are now aiming to revolutionize
the air cargo industry by delivering an innovative,
secured and cost-effective urgent payment
solutions that provides significant measurable
benefits for all air cargo value chain stakeholders.
This is good news for an industry that always
appears to be plagued by thin margins and
continuous cost challenges.
Only Takes One . . . Thousands of passengers
at the height of summer vacation are packed
like sardines in Hall A, Terminal 1, Frankfurt
Airport Tuesday August 7.
Police ordered a partial evacuation
of the airport reportedly after one person entered
the security area without authorization.
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