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   Vol. 17 No. 67
Wednesday October 10, 2018


United CSafe Rap Exclusive

“The CSafe RKN container has been a key component of our TempControl service since 2010,” said Jan Krems, President of United Cargo on Tuesday October 9 as United became first U.S. carrier to approve the CSafe RAP Temperature-Controlled Container. The offering presents exciting options including longer battery life to shippers for pharmaceuticals and other life science products.
     “The demand,” Mr. Krems added, “for pharmaceuticals and other health care products grows every year, and customers and patients worldwide are seeking expanded capacity across our TempControl network.”
     The CSafe RAP utilizes innovative heating and compressor-driven cooling technologies, along with advanced ThermoCor VIP insulation, to maintain constant payload temperatures even at extreme ambient temperatures spanning from -30°C to +54°C – the broadest operating range in the industry.
     Its large payload compartment of 6.68 m3 easily accommodates up to four standard U.S. pallets or five standard Euro pallets.

In For The Long Run

     With an extended battery run time of over 120 hours, the CSafe RAP ensures temperature integrity and product viability through to destination even on extended journeys. “With the new CSafe RAP container,” Jan declared, “we can meet this need using the innovative CSafe technology that is proven by years of impeccable performance and trusted by our customers.”
     Many of the same leasing options currently available for the CSafe RKN are available for the new CSafe RAP container. TempControl customers may lease the new CSafe RAP container directly from CSafe Global or through United Cargo. Customers seeking more information about the CSafe RAP or their leasing options should visit or contact their United Cargo Sales Professional.

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Mid-Autumn festival
Monday September 24 marked the beginning of a holiday for many in China, as the Mid-Autumn Festival, also known as the Mooncake Festival or Lantern Festival, closed many businesses to celebrate a family-driven tradition. One of the most important festivals of the year for Chinese people around the world, the Mooncake Festival dates back over 3,500 years.

Richard Malkin at the RecihstagRichard Malkin, the first air cargo reporter at the Berlin Airlift of 1948.

(Editor’s Note) Our headline Octember is no typo. My good friend, the late Editor Emeritus of this publication, Richard Malkin would never let October go by without referring to this month as “Octember”
I asked him at breakfast, (his favorite meal) as we sat inside the Omega Diner near his home in Floral Park, New York when he was 104 years old, where did that word blending come from and he replied:
“For air cargo, the peak season of October and November seem to come and go each year in a blur, thus Octember seems to neatly sum this time up.”
Richard Malkin, who made it until July 2017, may have left this dimension but is never out of mind at FlyingTypers. (G)

Another Opening Another Show

     Air freight rates reached yearly highs at the start of October and, although IATA remains pessimistic, most indications now point towards a healthy 2018 peak season followed by a strong lead-in to January’s Chinese New Year.

Paul TsuiPeak Pumping Traffic

     Paul Tsui, managing director of forwarding and logistics operator Janel Group, told FlyingTypers that early indicators suggested the 2018 peak season was already building and would continue through to Chinese New Year. He also said higher U.S. tariffs on Chinese exports due for implementation on January 1 would, based on the experience of previous Sino-U.S. tariff deadlines, also give rates and demand a bump at the end of the year.


When Tight Is Right

     At the start of October U.S.-based forwarder Flexport, meanwhile, reported that space from China to the U.S. “remains tight and rates are high”. Ex-Hong Kong market demand was reported as “high” with space getting tighter and rates continuing to rise, while ex-Vietnam market, demand was “extremely high” and the forwarder warned that shipments with a tight deadline should be booked as express.
     “Aside from standard peak season effect, the threat of a new round of tariffs has motivated many to move up shipments,” said Flexport. “Europe’s peak’s season is likely to begin soon, as well.”

TAC Indexes Rates

     Based on rate movements, it already has. Hong Kong – Europe and Hong -North America rates reached 2018 highs of $3.04 per kilo and $4.7 per kilo, respectively, on October 1, according to TAC Index.

IATA Capacity Up

     A peak season surge will give air freight stakeholders a timely boost after a year of erratic growth. The International Air Transport Association (IATA) said demand, measured in freight ton kilometers rose 2.3% year-on-year in August 2018. “This pace of growth was unchanged from the previous month but was less than half the five-year average growth rate of 5.1%,” it reported.
     IATA also noted that freight capacity, measured in available freight ton kilometers, grew by 4.5% year-on-year in August, the sixth month in a row that capacity growth outstripped demand growth, although yields “appear to be holding up”.
     Growth, according to IATA, is being supported by a number of factors including buoyant consumer confidence, an upturn in the global investment cycle and growing international e-commerce.
Alexandre de Juniac     However, even as demand and rates showed positive signs, IATA was surprisingly downbeat on air cargo markets with its latest report noting that export order books in Europe, China, Japan and Korea had fallen in recent months.
     “Order books are weakening and supply delivery times are lengthening,” said Alexandre de Juniac, IATA's Director General and CEO. “And the growing trade tensions are a specter over the industry. The early focus of tariffs was not on products typically carried by air. But as the list of tariffs grows so does the air cargo industry’s vulnerability. And, we can expect souring trading relations to eventually impact business travel. There are no winners in trade wars.”

To Each Their Own

     IATA’s pessimism was not reflected in Asia, although it should be noted that the new export orders sub-index China’s official manufacturing Purchasing Managers Index fell dramatically to 48.0 in September from 49.4 in August, implying rising uncertainty on the export outlook.
 Andrew Herdman    The Association of Asia Pacific Airlines recorded growth in international air cargo demand of 4.2% year-on-year in August and up 4.8% over the first eight months of 2018, while Hong Kong International Airport, the world’s largest hub for international freight, handled 431,000 tonnes of cargo and airmail last month, up 2.4% year-on-year, with traffic to and from North America and Southeast Asia posting the most significant growth.
     Andrew Herdman, AAPA Director General, said growth rates had “moderated after the strong surge we saw last year”. He was optimistic moving forward although, like IATA, he warned that demand could be hurt by trade wars.
     “The ongoing expansion in the global economy is sustaining high levels of consumer confidence which should continue to support further growth in both leisure and business travel markets,” he added.
     “Air cargo demand remains relatively firm moving into the peak season, even though growth rates have moderated. The escalation in protectionist rhetoric and the imposition of new tariffs has so far had little real impact on trade flows but adds an element of uncertainty for businesses reliant on integrated global supply chains.”

Chuckles for October 10, 2018

MAB Kargo Charter
  “Our commitment and flexibility is to exceed demand for a special level of service beyond expectation,” said MAB Kargo as drilling shipment on MH6052 from Kuala Lumpur (KUL) to Bandar Seri Begawan, Brunei (BWN) arrived Friday aboard an A330-200F.
  “In this case, we have re-routed the scheduled flight planned for Kuala Lumpur–Labuan–Hanoi into BWN to meet a special request for immediate delivery,” the carrier said.

DHL DRT Team IndonesiaDHL
Disaster Relief
For Indonesia

   On October 4, 2018 DHL said that its Disaster Relief Team (DRT) received the official mandate from the government of Indonesia through BNPB (Indonesian National Board for Disaster Management) and ASEAN Coordinating Center for Humanitarian Assistance on Disaster Management (AHA Centre) to support with humanitarian logistics in Palu, the tsunami ground zero on the island of Sulawesi, and in Balikpapan, a seaport city on the east coast of the island of Borneo.
   Two DRT teams are set up to support the request, one at Balikpapan where its international airport will function as the staging area for incoming international assistance into Palu, and the other at a distribution center close to the airport in Palu to handle and store relief goods.
   DHL said that “more volunteers are on standby and ready for deployment once the government has coordinated the flow of international aid into Indonesia.”

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
FT093018Vol. 17 No. 64
Toward A Perfect Blendship At AA Cargo
Chuckles for September 30, 2018

At AUS There Are Doctors In The House
Autumn Prayer
Vol. 17 No. 65
Virgin Atlantic Cargo Grows 3
Chuckles for October 3, 2018
Trade Wars Cast Long Shadow
AFTA NAFTA Rocky Road?
Harvest Moon Over Tokyo

Vol. 17 No. 66
A New Paige For Atlanta
Chuckles for October 8, 2018
Kicking The Cans With ULD CARE
Spicejet First Freighter At Delhi

Publisher-Geoffrey Arend • Managing Editor-Flossie Arend • Editor Emeritus-Richard Malkin
Film Editor-Ralph Arend • Special Assignments-Sabiha Arend, Emily Arend

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