17 No. 51
August 17, 2018
as 2018 continues,” FlyingTypers takes
a deeper look at new market entrants creating
a buzz in the create rate/analytical marketplaces
for air freight.
industry folks, here is one example of a number
of ways new entrants are disrupting the status
Bite Of New Reality
that the air freight sector has been slow
to embrace new technologies to improve supply
chain efficiency and customer experience is
unlikely to provoke dissent—although
some may counter that describing the industry
as ‘slow’ represents an unwarranted
degree of flattery.
for example. The project has received the
full backing of the industry’s leading
associations, but damningly only recently
passed the 50 percent adoption mark globally,
leaving the entire project years behind schedule
and close to obsolescence.
logistics procurement managers new to air
freight are generally, and genuinely, surprised
when they realize that a sector which charges
a premium for speed often reacts with glacial
haste when encouraged to modernize and innovate
in ways that can tangibly reduce costs and
failures and the fragmented nature of air
cargo supply chains also explains why most
analysts—not to mention investors in
start-ups—see disruption of air cargo
markets as inevitable, and expect the process
to be highly profitable for those who succeed
in securing a chunk of the pie from incumbents.
for forwarding and transport markets comes
in many forms. Outside of new entrants with
pockets deep enough to invest in chartering
their own air capacity (Amazon, its Asian
e-commerce rivals, and Flexport, an ambitious
digital forwarder which has attracted major
investors) most innovators entering air cargo
markets are looking to carve out niches by
using technology to streamline supply chains,
reducing costs and improving processes vis-à-vis
equivalent products available from more traditional
spoke to two leading new entrants now offering
marketplace services to understand how they
plan to digitize the air freight business, as
well as how they believe their products supplement
the services already available to air cargo
Freightos has been around for a number of years
and is now firmly established as an international
online-freight marketplace that links cargo
service providers direct to shippers. Eytan
Buchman, VP for marketing, told FlyingTypers
his company was able to offer instant, current,
and transparent door-to-door air freight rates,
enabling importers to select the shipping method
that made most sense for their supply chain
based on variables such as price, speed, and/or
Goes Weekly 2018
information is made available on the Freightos
Marketplace, which launched in July 2016,”
2018 we launched weekly air freight rate updates
in our Freightos International Freight Index
(FIFI), a weekly update on changes and trends
in freight rates, also available to any and
all who request it.
information is intended to help shippers and
forwarders alike understand the trends shaping
Audience New FAK
customers target freight of all kinds and
range from small-scale importers to freight
forwarders including CEVA, Nippon, and Hellmann,
as well as supply chain companies including
Sysco Foods and Marks & Spencer.
the most current and accurate freight pricing—air,
land, and sea—we are bringing transparency
to freight pricing for the first time,”
To Go Digital, Baby
that the air freight sector is ripe for disruption
as users seek cost savings and improved innovative
trillion-dollar industry has been begging
to be digitized,” he added. “Freightos
offers buyers the ability to transparently
compare door-to-door freight pricing, transit
time, and reviews from different forwarders
in one fell swoop.
technology that powers internal freight quoting
at some of the world's largest freight forwarders,
importers and exporters get landed cost estimates
with no hidden charges from some fifty global
management also becomes far easier, with a
one-stop shop for shipment management, complete
with document management, in-platform messages
with forwarders, payment processing, and round-the-clock
freight shipping that’s easier, more
competitive, and capable of supporting modern
day supply chains.”
“thousands” of companies are already
active on the Freightos Marketplace, while
“over 1,000” logistics providers,
including “dozens of top 50 freight
companies” now utilize the company’s
suite of freight rate management and quoting
also has plans to further expand its air freight
WebCargo constantly pushes the envelope of
technology to optimize air freight pricing
and booking,” he said. “We’re
currently working on some incredibly exciting
technology in both the dynamic pricing space
as well as live integrations across carriers,
forwarders, and shippers.
tuned in 2018 to see exactly what we mean.”
Oh So Oslo
new entrant into the air freight business
is Xeneta, which like Freightos first made
its mark in the ocean freight business.
firm has been supplying real-time and on-demand
ocean freight rate benchmarking and market
intelligence via its proprietary platform
since 2012, but in December the company announced
plans to expand into the air freight business.
Morphs Into Air
the program replicates its ocean analytics
model for air freight.
Xeneta gathers the latest global shipping
data from a community of over 700 leading
businesses, covering more than 160,000 port-to-port
pairings and over 35 million contracted rates.
users to track trends and stay on top of market
developments, thereby securing suitable rates
for their assets.
air freight is broadly similar.
It will provide
customers with air freight rate benchmarks
based on contracted rates on the spot and
long-term markets. “Customers can use
the data to prepare RFQs [Request For Quotation],
monitor and/or report on market movements
to make sure they have real-time visibility
into the procurement of air freight,”
said Katherine Barrios, chief marketing officer.
intelligence customers gather from Xeneta
can give them the upper hand when negotiating
rates with their supplier as they get full
transparency into the current state of market.
data provides intelligence on rates and transit
time for various weight brackets based on
for air is able to tell users which of their
contracted rates are on average, above, or
below average per origin-destination. They
are not quoted rates, which gives an accurate
representation of what the market/peers have
gives true transparency as it enables them
to know which connections they can be getting
better rates on—cost savings—and/or
improve on transit times or both.”
She also claimed
the system enables stakeholders to identify
which contract type they should be pursuing—spot
or tender market—based on historical
rate info and market intelligence trends identified
Rates Clearly Now
transport is as volatile as the ocean freight
market, where getting a clear and accurate
representation of cargo rate movements is
not readily available via a neutral data source,”
stakeholders are transporting on both air
and ocean, which makes their supply chain
even more complex.
visibility and accurate market rate intelligence
for both modes during procurement opens up
for a world of efficiency and cost savings
for sourcing teams.”
This fall Rafael Figueroa will lead a
team of over 1,600 employees at Delta Cargo
as Managing Director-Cargo Operations and Customer
With twelve years in
the airline industry, Rafael most recently served
as Vice President for Aeromexico Cargo, with
prior roles as Vice President-Ground Handling
for Aeromexico and as Chairman of the Board
for SkyTeam Cargo Alliances.
brings extensive knowledge of the cargo and
ground handling industry and the Latin America
market,” said Shawn Cole, Delta Cargo-Vice
“We will also be
able to deepen and strengthen the cargo joint
cooperation agreement (JCA) between Delta and
Aeromexico, as well as continue the momentum
of providing industry leading operations and
customer service,” Cole added.
view of the increasing opportunities and the
new challenges before the air cargo industry
across the globe, Air Freight Institute (AFI)
of FIATA will provide an effective platform
at FIATA World Congress (FWC) 2018 to elaborate
on the subject during the 99th meeting.
Hosted by FFFAI
and scheduled to take place from September
26-29, at Hotel Pullman, Aerocity, New Delhi,
with the theme “The Future Starts Here,”
FWC-2018 will witness more than 1,200 delegates
participating from 150-plus countries.
Star Cast September 28
session on air freight on September 28 is
expected to be one of the most interesting
and knowledgeable sessions in the history
veteran air cargo personality Snehal Parikh,
Managing Director, Lemuir Group will be moderating
the session. Panel speakers include Vandana
Aggarwal, Economic Advisor, Ministry of Civil
Aviation, Government of India; Kirsten De
Bruijn, VC, Cargo Pricing and Interline-Revenue
Operations, Emirates SkyCargo; Ashwin Bhat,
Head Swiss WorldCargo; Andrea Gruber, Head
Special Cargo, IATA; and Bill Gottlieb, Past
In her presentation
on “IATA CEIV Pharma” Andrea Gruber
will provide the audience with information
on the latest development in the transport
framework of temperature sensitive healthcare
and pharmaceutical products, how the industry
is responding to the CEIV Pharma Certification
program, the next key industry priorities,
and future developments in the airfreight
The panel discussion,
“Disruptions & Opportunities”
related to the global air cargo scenario will
also focus on a Q&A from the house to
make it truly beneficial for all.
It is pertinent
to mention that to further its mission, the
Air Freight Institute (AFI) has developed
an ongoing relationship with a number of stakeholders
in the air transport industry, beginning with
FIATA’s own national forwarding association
members, but inclusive of a wide spectrum
of others ranging from non-governmental organizations,
special interest groups, government bodies,
regulators, carriers, shippers, consignors,
customs groups, legal specialists, cargo risk
underwriters, and technology providers.
success is due, in large part, to its pro-active
posture on issues which may impact on the
international forwarding community, and its
reputation within the global transport industry
as the ‘group to go to’ for consultation
and action on air cargo issues,” a spokesman
demonstrated a tradition of delivering reasoned
and reasonable approaches and solutions to
industry challenges and issues.
as both a driver and conciliator to find workable
resolutions which benefit all parties in the
AFI Meeting in Delhi will meet members and
participants’ requirements by covering
the significant topics of AFI and keep them
updated, and also recap progress.”
For more info. click here.
is a blast from the past. It originally aired
in 1998, but it’s still alive on YouTube,
where it has been viewed more than 161,000
Airports is the title and the program runs
about 45 minutes.
we created a book for Airport Council International
(ACI) titled Great Airports Worldwide, comprising
800 pages of the soup-to-nuts history of 137
of the world’s airports.
Josh Hanig, a top notch TV producer, contacted
us for a series he was producing for The History
Channel called Modern Marvels.
read our book and said he wanted us to help
him put together the show.
of timeframe, all of this happened before
programs like Pawn Stars put The
History Channel solidly into the minds of
hundreds of millions of people around the
Eastern Airlines Bar Wings It
the show debuted on The History Channel, we
were in The Spirit—a great airline watering
hole in Miami created by some former Eastern
Airlines employees, where aircraft seats served
was attached to a hotel that also provided
low-cost quarters for people like us who were
attending Air Cargo Americas.
the innkeeper—who had an enormous satellite
dish on the roof—did not subscribe to
History Channel, but was willing to buy a
trial subscription, so we ponied up 20 bucks,
bought the house drinks, and settled in to
watch “International Airports.”
played and folks watched off and on and then
went back to whatever was on their minds.
bought more rounds and the show played on.
a great night that we often recall fondly.
Davies Was The Greatest
Marvels ran for decades and helped keep
the lights on for the History Channel.
rewatching our episode carries some mixed
I am very
glad to see my dear friend and colleague,
the late R.E.G. Davies, once again.
worked together on this film.
the greatest aviation historian in the history
of the world.
books for Smithsonian Press and his 50 years
as the dean of aviation historians, including
his tenure in The Lindbergh Chair at The National
Air & Space Museum in Washington, D.C.,
places an indelible stamp on aviation history
and can never be overlooked or forgotten.
at this film, you will notice airports old
and new, but here the newest is over 20 years
a doubt, today in the age of mega-airports
in America, Europe, Asia, the Middle East,
and elsewhere, the art of airports has accelerated
quite a distance.
The Higher Truth
the context of time, as this program looks
back at airport beginnings, in 2018 this film
delivers certain truths.
the destiny and sense of place of every great
city in the world is inexorably connected
to its airport.
good to look back at where we came from.
Cargo On Global TV
there is a segment for air cargo, so if you
stick it for awhile, look for the guy holding
up a bag of goldfish against the light in
a cargo facility at LAX.
to Jack Driscoll (right) who managed that
great facility, air cargo is included here.
mind the industry was given a solid bump on
global television decades ago and in that
effort came further ideas about bringing air
cargo to the masses.
ACN FlyingTypers Offices at MAT
Airport” segments were created inside
Air Cargo News FlyingTypers offices in The
Marine Air Terminal (MAT) at LaGuardia Airport.
Top DOT & FAA Award
the building that we saved in 1980 using the
clout of our pioneering newspaper Air Cargo
News, which began 43 years ago in 1975.
we were given the highest award of the U.S.
Department of Transportation (DOT) and The
Federal Aviation Administration (FAA) heralding
our “Outstanding Contributions to Public
Service & Transportation ” for saving
the Marine Air Terminal and declaring the
1939 airport facility an historic landmark.
first active American airport building in
passenger use to be designated an historic
landmark, MAT undoubtedly led the way for
others that followed, including the iconic
TWA facility at JFK, which has been saved
and is being adapted into an airport hotel.
kick occurred when U.S. Secretary of Transportation
Elizabeth Hanford Dole handed me the award,
transcribed with a dedication acknowledging
the Marine Air Terminal was saved forever
by Air Cargo News.
you can lean back as summer continues, whether
on the job or on vacation, and watch the video.
appreciate your comments.
for the memories.
Arend • Managing Editor-Flossie Arend • Editor Emeritus-Richard
Film Editor-Ralph Arend • Special Assignments-Sabiha Arend, Emily
Arend • Advertising Sales-Judy Miller
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