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   Vol. 18 No. 19
Friday March 15, 2019

Jack Lindsey, Tony Calabrese, Brian Barrow, Richard Crandall and Buz Whalen

Mike White and Brian BarrowMost people who pay attention to these things recall that Tony Calabrese headed up Cargo Network Services (CNS) in the U.S. for a quarter century, serving as President for so long that often dear Tony is thought to have been first top officer of that organization.
     Well, guess what?
     First Board Member of CNS was Brian Barrow.
     So what ever happened to Brian Barrow?
     That’s a good story and maybe we can tell it sometime, but for now here he is alongside current CNS President Mike White at WCS.
     Turns out Brian these days is working from Geneva on that deal to bring IATA and FIATA together on their far-ranging, but yet to be delivered agreement to work closer together from here to eternity.
     Can Brian in 2019 help bring air cargo together again, for the first time, like he did in 1979?
     We sure hope so and besides, doesn’t what goes around comes around, still apply?
     Here is what Brian, as director of IATA Cargo Agency Program, said to us in 1991:

“As the years wore on and the industry moved out of the piston-engine era and into the jet era and then into the widebody era, the reasons for mutual fault-finding and sniping grew more complex even as the industry expanded, gained in sophistication and started to show real muscle. Still, while all this was building, there was indisputable consciousness on both sides that they were fated partners; they needed each other. If not exactly Damon and Pythias, their interests coincided—at least up to a point.”

     Here again is Brian, once upon a time, with some air cargo people who still shine in our memory and tug at our heart. Bob Crandall in the picture may not have been all that to air cargo, but he always stood up for CNS.
     (L to R) first CNS President Jack Lindsay, second CNS President Anthony (Tony Calabrese), while original CNS Board Members Brian Barrow and Buz Whalen flank American Airlines CEO Robert Crandall.
     Good luck Brian!

Steely Dan
Chuckles For March 23, 2014

PayCargo Global

  PayCargo inked an agreeement with IATA to jointly offer air cargo the IATA-PayCargo System. The system will serve as an import payment platform for the global air cargo industry
  Built on the success of the PayCargo-CNS System that began in 2017 (www.paycargo-cns.com), the new deal allows cargo customers the ability to access information to settle up import billings with online payments.
  Innovative Eduardo Del Riego, CEO of PayCargo LLC declared:
  “Having experienced the success of the CNS-PayCargo System in the United States, now our global customers can benefit from the strength of our expanded partnership.
  “The PayCargo system, which already has 20,000 users worldwide has proven to be beneficial and among other things, permits members to reduce costs significantly.”
  Mr. Del Riego (left) is pictured with the team at Pay Cargo designated to handle IATA PayCargo including, from left, Adriaan Reinders, Chief Executive Officer PayCargo Europe BV; Roland Reinders, chief Community Officer, PayCargo Europe BV; and Juan Dieppa, Chief Operating Officer, PayCargo.

Orhan Yilmaz, Turhan, Ozen, Huseyin Ceyhan,and Cagn Alpak

   “Looks like this year will be challenging but we still are going to deliver double digit increase in business,” said Turhan Ozen, Head of Cargo Turkish Airlines pictured (L to R) with Orhan Yilmaz, Regional Cargo Manager-Singapore; Huseyin Ceyhan, Vice President Asia Pacific and Cagn Alpak, Application Programmer.
  “We are opening the most advanced air cargo facility at Istanbul, the greatest new airport in the world during 2019, and expect a very smooth transition during the process by migrating from our current location to our new operation during the coming months.”

Vikram Singh and Ingo Zimmer

   Pictured at IATA World Cargo Symposium in Singapore March 13 are (L) Vikram Singh, CEO World Freight Company (parent company of ATC), and Ingo Zimmer CEO ATC.
   “I think,” said Ingo Zimmer, “the greatest service we deliver to our customers is ATC’s every day total dedication to our major asset as a company, our people.
   “ATC is all about our passion for building lasting and rewarding careers of dedicated highly skilled specialists to serve a diverse and global client base.
   “At ATC we energize and empower our employees with several programs.
   “As example, a physical trainer and regimented exercise is a daily mantra at headquarters, as are nutritionists providing employee meals alongside a regular menu of team building events.”

Vera Marzoug Bassi
   New Faces . . . Meet Vera Marzoug Bassi, United Cargo eCommerce Technology Manager, fresh on the scene from UA pax marketing, where she was involved in creating the carrier’s Mileage Plus tracker program. Vera came to United from Wunderman, a giant digital ad agency.
   On her way to the e-freight and digital transformation tracks at WCS Singapore Vera declared:
   “I want to bring United’s online experience to help create a rewarding encounter for our air cargo customers.”
   More power to her!

Qatar Cargo Sales group

   Qatar Cargo First . . . At WCS, Qatar Cargo celebrated launch of IATA Net Rates.The signing ceremony took place at the Qatar Cargo booth during IATA’s World Cargo Symposium. IATA’s Net Rates helps airlines and freight forwarders to achieve better efficiency in rates distribution and is a cornerstone of the digital transformation in air cargo.

Cargo March Numbers
A disappointing Chinese New Year has been followed by weak demand on the major lanes out of Asia, exacerbated by the disruptive currents emanating from the U.S.-China trade war and uncertainty over ongoing negotiations.
     Most industry experts now don’t expect a jump in volumes and/or pricing rebound to materialize until the second half of 2019.

TAC Index Mixed

     The latest TAC Index readings reveal that Hong Kong-North America lanes dipped from a peak of $5.69 per kg on November 19, 2018 to $3.42 per kg on March 4. Hong Kong-Europe routes, meanwhile, peaked at $3.77 per kg on December 10 before slumping to $2.35 on February 18 and then recovering marginally to $2.57 per kg on March 4.

ACD Volume Drop

     The latest monthly volumes studied by analysts at World ACD confirm how pricing is reacting to demand. “The first month of 2019 confirmed the trend we have seen for a number of months now: another volume drop, this time of 2% year-on-year, coupled with a yield drop in USD of 2.5%,” said the analyst.
     WorldACD also noted that Chinese New Year had a counter intuitive impact on flows to and from China. “Origin China grew by 5% year-on-year in January, but the destination China fell by more than 10%,” it noted. “We observed this trend also in the past two months, but it was more pronounced in January due to the early Chinese New Year, Feb 5 in 2019. As we see it, the period preceding this day seems to have had a small positive effect on outgoing business from Asia Pacific, but a more serious negative effect on incoming business.”

The Sulphur Factor

Cathy Roberson     With the China-U.S. trade war still weighing heavily on demand and clouding the forward outlook, and demand from Europe tepid, most executives contacted by Flying Typers said there was little reason to expect a market rebound in the coming months.
     “January 1, 2020 implementation of IMO low sulphur fuel rules may shift some cargo from ocean to air later in the year and could impact capacity and rates,” said Cathy Morrow Roberson, founder and head analyst at Logistics Trends & Insights.
     “In addition, inventory replenishment will be necessary, particularly after stockpiling occurred ahead of anticipated tariffs on Chinese goods in 2018 and early 2019. Otherwise, addressing growing e-commerce volumes will be needed for the air cargo market particularly for faster delivery times for delivery as well as for returns processing.”

Fluid Markets Flexport

     Neel Jones Shah, SVP and Global Head of Air Freight at Flexport, told FlyingTypers that the outlook for the key Transpacific lane was extremely fluid following the suspension by President Trump earlier this month of planned new tariffs on imports from China.
     “There are a lot of moving parts so it’s hard to be incredibly definitive about 2019,” he said. “It has been an extremely slow year out of China whether it’s mainland or Hong Kong. And the recovery from CNY has been one of the slowest that I’ve ever experienced in my 17 years in the business. It’s just been a very, very slow recovery from Chinese New Year, and volumes are down, and you clearly see that in the statistics.
     “That being said, there are other parts of Asia that are doing extremely well. In North Asia, for example, Japan is very strong. Automotive traffic to the U.S. is vibrant. South East Asia has also been quite active—Vietnam, Thailand, Malaysia.
     “All of this could be due to the shift in production (due to U.S, tariffs on Chinese exports) from China into South East Asia.
     “I think that as you look at the balance of the year, I am extremely optimistic as I think most people are now, that the U.S. and China are going to solve their trade dispute, and may even roll back the 10% tariff. And if they do that, clearly Chinese exports are going to become extremely competitive once again.”

Trade War Modal Shift & Volumes

Eytan Buchman     Freightos CMO Eytan Buchman said there had been some modal shift to ocean so far this year while the U.S.-China trade war was also limiting Transpac volumes.
     “The China trade tariffs stimulated advance shipping and we suspect that the protracted threat encouraged some U.S. importers to explore cheaper, slower ocean freight,” he said. “The latest WTO first quarter international trade indicator was the weakest since early 2010. There are steep declines in the indices for export orders and international air freight.
     “China-Europe rail connections are a small but growing competitive threat to air freight in the long term.”
     And, he added, “a hard Brexit may stimulate demand short term, but with the UK economy likely to contract, this won’t last.”
     Looking for positives, he said as 2019 rolled out the continued growth of ecommerce would generate greater demand for more smaller shipments.
     “IMO low-sulfur fuel regulations will also increase ocean freight rates toward the end of the year, encouraging some importers to switch back to air freight,” he added.

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Love St. Patrick's Day

     Celebrate St. Patrick’s Day with these words as you lift your glass to friends and family:
               May the road rise up to meet you
               And may the wind always be at your back
               May the sun shine warm upon your face
               And the raindrops fall soft upon your fields
               And until we meet again
               May God hold you in the small of his hand

     There may be always an Ireland, and beyond that lovely prospect, always 100 parades around the world to celebrate March 17th.
     But from 11:00 a.m. until about 3:00 p.m. on an island called Manhattan, where a green stripe runs down the middle of Fifth Avenue from 44th to 86th Street, The St. Patrick’s Day Parade is one of New York City’s greatest traditions.
     On St. Patrick’s Day a kind of wonderful delirium takes over in Gotham.
     Everyone is Irish!
     The annual procession marches up Fifth Avenue, past St. Patrick’s Cathedral at 50th Street, all the way up past the Metropolitan Museum of Art at 83rd Street.
     The St. Patrick’s Day parade in NYC began even before there was a United States of America in 1766, when Irishmen from Ireland’s Revolutionary War brought the tradition here.
     Military units continued to march each year until after the War of 1812, when local Irish fraternal and beneficial societies began sponsoring the event.
     In those days, the parade was quite small, marching from local Irish meeting halls to Old St. Patrick’s Cathedral in Lower Manhattan on Mott & Prince Streets.
     By 1851, the groups had banded together, nominating a Grand Marshall and increasing the size of the parade.
     This was when the Irish 69th Regiment (now the 165th Infantry) became the lead marchers, and the Ancient Order of Hibernians became the official sponsor.
     We love St. Patrick’s Day.
     It’s when the “Irishrey” of New York come out in full celebration. Look into the faces of the uniformed services, especially the NYC Firefighters and you will get it right away.
     We also like that St. Patrick’s Day Parade remains true to its roots by not allowing floats, automobiles and other commercial overkill.
     Marching, great bands, bagpipes fill the air as more than 150,000 people from all over the country and the world celebrates here in New York.
     We will gather the clan this Sunday and eat the traditional dinner, loving every bit until our hands get tired. Then we'll pull out the family album—laugh until we choke a couple of times—and eat some more!

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
FT030419Vol. 18 No. 16
Cargo Delivers As Space Goes Private
Chuckles for March 4, 2019
Thomas Uschtrin—A Tall Tale
Overnight Sensation In The Making
Karneval In Rhineland
Birth Of Modern Air Cargo
Vol. 18 No. 17
Jenni Moves Forward At EMO
Chuckles for March 8, 2019
Balance For Better

Vol. 18 No. 18
United Tops U.S. Belly Cargo
Chuckles for March 12, 2019
Viva La Difference
Wings Of Layda
New Horizons
Stanley Lim—Why FIATA
Goyal Departs Jet

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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