Turkish Cargo Ad

FlyingTypers Logo
   Vol. 18 No. 9
Monday February 4, 2019

Virgin Cargo Ad

A Tale Of Two Markets

     A tale of two (intertwined) continents.
    Doubts are swirling around the European economy, but bearish economic sentiment is not dimming the optimism of some operators.
    Over in Asia, meanwhile, some analysts predict that some air freight lanes could benefit this year from the ongoing fallout around the U.S.-China tariff war.

God Bless This Mess

     With Britain a chaotic mess of political indecision ahead of its scheduled ‘Brexit’ from the European Union on March 29, with the potential scenario that a no-deal Brexit will see a divided country sleepwalk off an economic cliff into a recession grows by the day.
     Elsewhere in Europe the news is equally bleak. Italy is, well, Italy, France is beset by protests and Germany may have avoided entering a technical recession in the final quarter of last year, only because Q42018 was a day longer than Q4 2017.

Populism & Protectionism

     In the East, populism and protectionism are finding political traction, while on the Mediterranean, Turkey’s ongoing economic and political challenges are observed.

Paul MullinsGreat Expectations

     The World Bank now expects the Eurozone to see the rate of GDP growth slow every year over 2017-2021.
     FIS predicts that China-Europe air freight pricing will increase in February around Chinese New Year, before slumping until at least May, while Paul Mullins, Vice President of Non-Vessel Operating at Xeneta, expects European freight markets will slow this year.
     “In airfreight, Brexit sees the industry look at alternatives, possible forward stocking locations, also servicing mainland Europe through Middle East hubs avoiding going through the UK,” he told FlyingTypers.

Bubbly Across The Waves

     “Ocean freight could still see continued increased volumes of recent months, as importers try to avoid the higher duties in the U.S., as well as trying to mitigate the risk of disruption in Europe.”

Say The Word

andreas Pauker     Andreas Pauker, spokesman for Lufthansa Cargo, said although Europe’s export numbers were weaker than expected in the latter part of 2018, he was optimistic about 2019 with “positive demand” growth predicted both globally and for Europe. Indeed, Lufthansa is bulking up its European capacity by offering customers three additional Boeing 777F capacities this year. Lufthansa Cargo will operate two and AeroLogic, the carrier’s joint venture will operate one.
     “Those routings are not fixed yet, as we manage our freighter network flexibly to best meet our customer’s demand,” said Pauker.
     “Overall, I assume that the destinations in Asia will remain very important for our freighters.
     “Basically, we’re striving for balanced inbound and outbound traffic, also on these lanes.”

Asia Pacific Growth Deepens

     Indeed, even with doubts around Chinese economic growth deepening, Asia’s exports will, as usual, provide a solid foundation for global air freight optimism in 2019. Cathy Roberson, founder and head analyst at U.S.-based consulting firm Logistics Trends & Insights, said the continent would remain a major growth region for air freight forwarders and 3PLs this year.

Cathy RobersonLooking For A Few Good Forwarders

     “In our latest forwarding white paper, 58% of survey respondents indicated that APAC would see the greatest demand for forwarding services in 2019,” she told FlyingTypers.
     “A number of forwarders have made investments in the APAC region which seems to indicate optimism for the region.” For example, Panalpina opened a six-floor facility in Singapore in July.
The company noted that 96 of its top 100 global customers have a base in Singapore and that the majority of the space at the multi-purpose facility is rented out to customers. Meanwhile, in October last year, Kuehne + Nagel acquired Wira Logistics, based in Indonesia. The strategy behind the acquisition is to strengthen Kuehne + Nagel’s nationwide warehousing and distribution network in Indonesia.”

Growth Inter-Asia Expected

     Roberson expects intra-Asia air freight to be a growth area for air freight this year. “I think the positives will be regional air freight growth demand for APAC as well as to/from emerging markets in Africa, the Middle East, South America,” she said.
     “Negatives will be the U.S., thanks in part to tariffs but also the need to draw down on inventory build-ups incurred ahead of tariff announcements. Europe is slowing and I don't think demand will be strong in 2019.”

Stewart SinclairView Upward Down On The Ground

     Stewart Sinclair, Managing Director of Bangkok Flight Services, one of the two leading freight ground handlers at Bangkok’s Suvarnabhumi Airport, Thailand’s main gateway and a regional hub, was downbeat about the outlook for 2019.
     “I expect that trade will slow down globally and it’s possible that we could have a recession by end of 2019,” he said. “I think there will be a near-term drop in trade as a lot of customers have been shipping goods ahead of the planned tariff increases so we have had a bit of a false end to 2018.
     “Another factor that may hit Thailand is the slowdown in the hard drive market because of the move to cloud. Whether this will result in the major hard drive manufacturers looking to convert their facilities in Thailand into phone production remains to be seen.”

View from Hong Kong Wu

Brian Wu     Brian Wu, chairman of the Hong Kong Association of Freight Forwarding (HAFFA), said he was uncertain about how Hong Kong forwarders would fare this year given the doubts surrounding the Chinese economy, and the potential for some export traffic aimed at the U.S. market being moved out of mainland China locations, a move that has already hurt some HAFFA members.
     “I am not quite sure about the market situation in 2019, despite what we have heard about the trade war,” he said. “We are seeing the relocation of manufacturers from Mainland China. There are so many uncertainties. We are worried about the situation of Q1 and Q2.”

Cathay Pacific Cargo Lunar Greetings

Chuckles for February 3, 2019

Chinese New Year 2019

Here comes Chinese Lunar New Year for 2019, which arrives on February 5. It’s the Year of the Pig. Kung Hei Fat Choi!
     Sure, we love February ‘cause we have two kids born this month. But we also like, that both Chinese New Year and Valentine's Day happen during the second month of the year. And that daylight hours are inching forward to the moment when baseball catchers and pitchers will start reporting to camp.
     We love celebrating Chinese New Year.
     What a great opportunity for family, special lovers and great meals surrounded by lots of friends & flowers.
     And what a great day to be Chinese!
     But if you are in New York, a great Chinese meal, a moveable feast awaits around the clock 24/7/365.
     It is apparent to almost anyone traveling on business that there isn’t enough time to enjoy authentic local scenery.
     Dinner that hasn’t been worked into the business schedule becomes an after-thought, a quick twelve-dollar burger served on a tray with a moist towelette in some forgotten hotel room.
     We are so quick to let business travel spoil the excitement that comes with going to a new place.      The town you’ve been zipping through for the past couple of days could be the grist for your memory’s mill, and sometimes culture shock can be cathartic.
     At the very least, a side step journey into town can afford a little life experience and a few polite conversations with the locals.
     Here in Flushing, Queens, New York near both JFK and LGA Airports, you have to try really hard to find a bad Chinese restaurant.
     About a quarter century ago, Chinese and Korean people came along and salvaged a truly run down area of New York City called Flushing, turning it into a booming, glitzy, beautiful metropolis, punctuated with great restaurants, theaters, office towers and residential areas.
     We have however decided after many years that the best places to eat, in many instances, may not be very much to look at from the street.
     The message here is that “curb appeal” can often be an illusion.
     For the food, money and atmosphere, which includes pre-colonial dark wood and mirrors and an irresistible sound track of truly wonderful jazz that always seems to be playing faintly as background, try Shanghai Yu Garden on Kissena Boulevard about a mile from LaGuardia Airport.
     We thought that the late Anthony Bourdain who we used to see eating here all the time would wreck this joint when he endorsed Yu Garden on his CNN show called “Parts Unknown,” but thankfully that did not happen.
     Yu Garden, located back from the sidewalk is in a store front that might scare you off, although it gets a great audience that knows the place, as all wait patiently for the chef at the back of this smallish restaurant working non-stop, hand making the homemade soup dumplings, that can only be described as food for the Gods . . .

Tales Of Nanking Road

     I recall a Sunday alone at the downtown Mandarin Hotel in Taipei, right near Nanking Road. The Mandarin is a crew hotel. Pilots and cabin crew have a reputation of being tight with a buck.
     Most pilots like to maintain a fairly high profile life style, while cabin crew never has any money.      Sometimes I think cabin crew invented stew. They always seem to be planning potluck dinners.
     The old joke: “Hey, this food tastes different. Did somebody wash my bowl or something?” barely affords a chuckle from these chowhounds.

Mandarin Hotel & Terry & The Pirates

     The Taipei Mandarin is always a good buy. The place is clean, if a bit faded. The restaurant, which serves Chinese and American breakfast around the clock, is always a good bet.
     The Mandarin is also equipped with a staff of husbands and wives who seem to live and tend to individual floors.
     You can be sure a staff member will see you to your door following check-in, and don’t be surprised when your arrival is heralded with hot tea and cookies.
     Once I stumbled into my room after a 19-hour flight and dived straight into the shower, only to discover my disheveled heap of clothes had been neatly pressed and hung.
     Lots of ex-patriate fliers and business types stay at the Mandarin.
     Anytime, day or night, Sky King is meeting under the gaze of Terry and the Pirates and Smilin’ Jack, all comic book heroes of 1930-40’s aviation.
     After arriving late one Saturday and working all of the next day on a story, I decided it was time to get out. The T.V. was rattling on in Chinese and English alternatively, about some sporting event that no longer held my interest. I decided to take a walk to find something to eat and maybe pick up some bottled water.

A Foodie Adventure & Good Laugh

     It was drizzling lightly, a warm, early spring evening. Sundays anywhere are the same.
     It doesn’t really matter where you are in the world. There will be more places open on the day after the apocalypse than on any given Sunday.
     I stopped at a small restaurant that looked busy. Business in a restaurant is a good sign in any country. The first thing I noticed was how the place smelled.
     This joint smelled great.
     A couple of beers and a plate of fried rice later, I left my small side table completely satisfied.
     Around the corner from the restaurant I found a group of people laughing and joking in the staccato tics of quick and easy Chinese conversation. For a moment I thought that I had missed the place the cool crowd supped. I felt a need to get the name and address of said cool place so that I could return at a later time. I began to make my way to the group.
     It was then that a familiar sign struck me, a sign emblematic of gaudy, tacky Americana: the flashing red and white striped logo of T.G.I. Fridays. I laughed, and wondered if my joke was funnier than the joke shared by the cool crowd. I had not come halfway around the world to eat burgers and fairy food.
     Now, whenever it’s time to hit the road again, I think of that damp Sunday in Taipei. It reminds me to get out and experience more of the local scene.

Gotta Get Up-Get Out

     I always wonder about people who come to New York from other parts of the world insisting that the best restaurants are in Manhattan, simply because they’ve read that somewhere.
     Let’s set the record straight.
     Any stiff can read a review and fork over a lot of cash.
     The idea is to get out, get fed, have some fun and not get stuck paying through the teeth.
     Try something new, even if it’s in small amounts.
     Live a little.
     You may not pass this way again.
Harry Nilsson Get Up Get Out

FlyingTypers Ad
Click To Subscribe Today

Favorite Lunar New Year letter

Guenter MoslerWe recall a letter received during the Lunar New Year celebrations in 2006 from our friend and editor in Frankfurt, the late Guenter Mosler.

Hello Sabiha & Geoffrey -

   . . . Just learned from my friend, Chunqing Huang, that I am celebrating a special birthday tomorrow - 29 January 2006 - as I was born in a Year of the Dog 1934 and now 2006 celebrates the dog once more.
   So from one dog to dogs celebrating worldwide, Happy New Year!

PS: Picture of the calendar page catches the spirit.
And - yes the animal is a dog, an antique figure, just like me!

American Tantrum

     Give the gift of laughter this New Year's with American Tantrum.
     American Tantrum is a hilarious, cutting satire that imagines the contents of the 45th President's Presidential Archives in interviews, classified documents, illustrations and more.
     Buy the book and audiobook here now.

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
FT011819Vol. 18 No. 6
Shutdown Described As Devastating
Chuckles for January 18, 2019
One For Boyes At dnata Heathrow
At Home In A Container
Brave Bessie Blazes A Trail
FT012419Vol. 18 No. 7
Quote Of The Day
Chuckles for January 24, 2019
Miami Double Down Dynamo
SWISS WorldCargo Extends Helping Hand
TWA Cargo À Un Petit Marché Français
Super Blood Wolf Moon

Vol. 18 No. 8
UK Brexit Merry Go Round
Chuckles for January 29, 2019
We Like CNS And We Like Mike
Miami Lands Brazil Post Deal
Letters To The Editor

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

fblogoSend comments and news to geoffrey@aircargonews.com
Opinions and comments expressed herein do not necessarily reflect the views of the publisher but remain solely those of the author(s).
Air Cargo News FlyingTypers reserves the right to edit all submissions for length and content. All photos and written material submitted to this publication become the property of All Cargo Media.
All Cargo Media, Publishers of Air Cargo News Digital and FlyingTypers. Copyright ©2019 ACM, Inc. All Rights Reserved.
More@ www.aircargonews.com

recycle100% Green