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   Vol. 18 No. 26
Tuesday April 9, 2019
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Tom Friedman Brexit Read  “The United Kingdom Has Gone Mad!”
  “The problem with holding out for a perfect Brexit plan,” Tom Friedman writes in The New York Times, “is that you can’t fix stupid.
  “If you can’t take a joke you shouldn’t have come to London right now, because there is political farce everywhere.
  “In truth, though, it’s not very funny.
  “It’s actually tragic.
  “What we’re seeing is a country that’s determined to commit economic suicide but can’t even agree on how to kill itself.
  “It is an epic failure of political leadership.”
  Read the rest . . . Tom Friedman in The New York Times.

Chuckles for April 9, 2019

Looking For The Upside In Quarter Two


Asia was full of mixed signals as airfreight stakeholders entered the second quarter of 2019 hoping for an upturn after a slow start to the year.


Contrationary Contradiction

     After three consecutive contractionary months of scores below 50, the official Chinese manufacturing Purchasing Managers’ Index (PMI), which measures sequential growth momentum, climbed to 50.5 in March from 49.2 in February.


Exports Move Up

     Of more interest to the logistics sector, the new export orders sub-index jumped to 47.1 in March, from a slump to 45.2 a month earlier, while the new orders sub-index climbed to 51.6 last month from 50.6 in February.


Reading The Tea Leaves

     Yet despite the upturn in economic indicators, analysts warned the jump in activity might simply be a rebound from post-Chinese New Year factory closures. Certainly, there was not much sign of a major turnaround in airport volumes at key Asian origins at the start of April.
     Flexport reported that although the ex-China market was picking up and rates had increased into the EU and U.S., there was still ample capacity available to shippers. Ex-Vietnam capacity was stable, but rates were “expected to increase”, while ex-Hong Kong “market demand is picking up, especially to the U.S. East Coast,” although “no backlogs are foreseen.”


Paul TsuiReports Moderate But Slow

     Paul Tsui, managing director of Hong Kong-based forwarding and logistics operator Janel Group, said the current market to the U.S. “was at a moderate level,” but other trade lanes “were quite slow at the moment.” Tsui does not expect a significant pick up in the Asia export market before August, at best.


Flying Stallion

Peter Stallion     Taking a different tack, Peter Stallion, an air cargo derivatives broker at Freight Investor Services, told FlyingTypers that the China-U.S. market had rebounded into positive territory.
     By contrast, China-Europe lanes had seen “a continued decline in prices indicating a drop in volumes,” although he said market feedback was more positive than price movements suggested. This, he added, possibly indicated that European trade lanes were being priced inefficiently.
     “Market drivers remain the same as always,” he said. “Our Chinese freight forwarder clients report they are experiencing a minor rebound of export demand into the U.S. and Europe. We will have to wait for volume data from IATA to confirm this. However, it appears this demand will be outstripped by capacity over 2019. Even with this being the case, carriers have maintained higher price levels, perhaps in an attempt to compensate for lack of booking volume given slack demand.”
     According to Stallion, the key market feature of 2019 will be increased spot-market buying, resulting in an increase in market volatility with forwarders betting on their buying teams securing ad-hoc space effectively.
     “The danger is that barriers to cross-border commerce—trade wars, tariffs etc.—will wind down as early as Q4, which could threaten to flood the market with extra demand in a short period of time,” he added. “You would see the market react in a similar fashion to 2017, ideally softened due to greater wide-body capacity.”


Q2 According To World

     The latest analysis of after-the-fact volumes covering February by WorldACD revealed the usual disruption caused by diminished business activity around Chinese New Year. To overcome the difficulties presented by the lunar calendar in terms of year-on-year comparisons, the analyst instead combined January/February data to get a more accurate reading.
     “The area Asia Pacific took the largest beating in the first two months of 2019: outgoing volumes were down year-on-year by 6.8%, incoming by 6.1%, against the backdrop of a 3.6% worldwide decrease,” said WorldACD. “All other regions also suffered in incoming traffic, with year-on-year percentages ranging from -5% for Central & South America to -0.6% for North America. “In year-on-year outgoing business, performances ranged from +2.5% for Africa to -3.8% for North America.
     “Taking a slightly longer view, we should draw your attention to the fact that Jan/Feb 2019 were still better than the first two months of both 2016 and 2017.”
     However, World ACD said predictions of 3% annual air freight demand growth this year would likely prove optimistic. “At this moment in time, it seems harder and harder to achieve the 2% to 3% growth predicted for the full year 2019 by some of the industry players,” it concluded.


IATA Into Headwinds

Alexandre de Juniac     IATA said demand for air cargo continued to face significant headwinds including trade tensions, weaker global economic activity and tepid consumer confidence, and declining global PMI figures for manufacturing and export orders. Indeed, IATA noted that global export orders have now been contracting since September 2018.
     “Cargo is in the doldrums with smaller volumes being shipped over the last four months than a year ago,” said Alexandre de Juniac, IATA’s Director General and CEO.
     “And with order books weakening, consumer confidence deteriorating and trade tensions hanging over the industry, it is difficult to see an early turnaround. The industry is adapting to new markets for e-commerce and special cargo shipments. But the bigger challenge is, trade is slowing.
     “Governments need to realize the damage being done by protectionist measures. Nobody wins a trade war. We all do better when borders are open to people and to trade.”


Dean MaciubaAnother Voice

     However, Dean Maciuba, head of consulting services at Logistics Trends & Insights, told FlyingTypers that IATA’s analysis was too simplistic. “It’s much too easy to lay-off air cargo declines on global economic softness and protectionist trade policy at the country level,” he said.
     “My clients are telling me that air cargo rate increases, especially via the air cargo carriers flying dedicated freighters, are forcing them to source manufacturing and assembly solutions closer to the end user.”
SkyKing


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Looking At Latest Numbers Asia was full of mixed signals as airfreight stakeholders entered the second quarter of 2019 hoping for an upturn after a slow start to the year.


Ode To Fala:  Dogs are subject of poetry, best friends of Presidents and First Ladies, and on the half shell upcoming at CNS Miami.

Kicking The Cans In Canada There is a great if not slightly unknown, and perhaps overlooked industry event, that meets in Montreal Canada as ULD CARE opens its 32nd Annual Conference September 16-19. For Urs Wiesendanger, President, ULD CARE, and Bob Rogers, VP & Treasurer, ULD CARE, kicking the cans has been a joyful, lifelong obsession.
 


Innovation Stage 2018  

As the time gets closer to Cargo Network Services (CNS) Annual Partnership Conference to be held this year in Miami May 5-7 at Trump Doral, Mike White, CNS President will once again present ‘Innovation Stage’ as an integral ongoing part of the event.
  “The CNS Innovation Stage will be two days of updated products and ideas for the industry,” Mike assures.
  Gone is a CNS Partnership Conference that conducts sessions and topics in side halls or meeting rooms that was once the practice here.


Smack Dab In The Middle

  “Innovation Stage offers a direct, varied and always interesting sessions program right inside one corner of the big exhibition hall, which also hosts the display stands, coffee breaks, and meals.”


Overacker Borders of e-Commerce

Thomas Overacker   “U.S. Customs & Border Protection,” Mike notes, “will be sharing their vision of the 21st century for customs.
  “With e-commerce growth, how will CBP continue to effectively fulfill their mission?”
CBP is pursuing an initiative titled ‘The 21st Century Customs Framework’ (21CCF).
  The 21CCF seeks to address and enhance numerous aspects of CBP’s trade mission to better position the agency to operate in the 21st century trade environment.
  Overview of current operations and how CBP will look in the future by Thomas Overacker who holds a Senior Executive Service position as Executive Director, Cargo and Conveyance Security, Office of Field Operations, in Washington, D.C.



Jaco VanemanFrance & The Dutch Touch

  “Air France/KLM/Martinair Cargo’s Jaco Vaneman, (right) Head of e-Commerce Logistics will be providing an overview on how they are tackling the e-commerce revolution and what plans they have underway to engineer their business in this dramatic growth.”

 

Hare & The Hounds At CNS

Eric Hare  “The TSA rules allowing the use of third party approved canine for air cargo screening have kicked in, but it is more than just about our four-legged friends.
  “Eric Hare, CEO of Global K9 is a technology company that just happens to have canines.
  “His company is implementing the use of technology into canine cargo screening and will provide insight how their technology is incorporated to each and every inspection.
  “Hare will be showing how they can help digitize the process, capture and digitize shipment information, provide real-time reviews and digitally store the data for future need or use.”


Doctor Sieke Makes A House Call

Harald Sieke   Dr. Harald Sieke is Head of Aviation Logistics, of the Fraunhofer Institute for Material Flow and Logistics (IML). Dr. Sieke’s department is focused particularly in IT, digitization and production. Here is the theme for CNS Innovation Stage:
  “Increasing Operational Efficiency in Air Cargo by AI & AR.”
  “As air cargo volume is growing fast,” Mike White said, “its structure is changing in parallel driven by numerous effects such as e-commerce.
  “For coping with such effects, Fraunhofer as the leading organization for applied research, is developing new solutions with latest developments on means, such as AI and AR in the air cargo value chain.
  “Dr. Sieke’s presentation will offer a sneak preview on air cargo AI and AR applications and how they will increase operational efficiency in air cargo handling,” Mike White said.
Registration & More: www.cnsc.net
Geoffrey


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FDR and Fala
  
     Apropos of “Canines at CNS,” this week we salute U.S. President Franklin D. Roosevelt’s dog, Fala, a Scottish Terrier.
     Fala was born April 7,1940.
     One of the most famous presidential pets, Fala was taken many places, including aboard the Pan Am B314 Clipper that transported FDR to the famous Casablanca meeting with Joseph Stalin and Winston Churchill held at the Anfa Hotel in Casablanca, French Morocco from January 14-24, 1943.
     Given to the Roosevelts by a cousin, Fala knew how to perform tricks; the dog and his White House antics were mentioned frequently by the media and often referenced by Roosevelt and his wife Eleanor.
     Fala survived Roosevelt by seven years and is buried near FDR at the Roosevelt home in Hyde Park that also serves as The Roosevelt Presidential Library.
     The FDR Presidential Library was the first presidential library in the U.S., and today is very active with events all year long.
     FDR Library for 2019 is offering “Pet Membership”.
For USD$35 you get a one-year admission to the FDR Library, plus a special “Fala kerchief” to wear when you bring your pet to the “Annual Dog Walk” in late June.
More: https://fdrlibrary.org/

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If You Missed Any Of The Previous 3 Issues Of FlyingTypers
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FT032719
Vol. 18 No. 23
May Or May Not . . . Brexit
Chuckles for March 27, 2019
Vol. 18 No. 24
Peg O' My Heart
Chuckles for April 1, 2019
Women Keep On Truckin'

FT040519Vol. 18 No. 25
Captain Of The Clouds
Chuckles for April 5, 2019
Undefeated Babar Badat
Auntie Heart Of Cargo

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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