Virgin Cargo and Accenture, a plus plus for everyone.

     “Our entire business model is based on giving customers more choice and flexibility, whether this means more routes and frequencies, new products and services, or the ability to interact with us in the way they want to do business,” said Dominic Kennedy, Virgin Atlantic Managing Director, Cargo as VS unveiled a smashing new advancement as first to adopt Accenture’s cloud-enabled, end-to-end AFLS 8.0 cargo management platform to spearhead its digital future when it goes live in early 2020.
     Virgin Atlantic Cargo’s digital transformation, once the system is fully operational, based on the release of subsequent phases, will be able to interface directly through APIs and connect with the airline’s new web platform for pricing, bookings, allocations, and operations, while ‘live chat’ and Chatbots will offer 24/7 interaction based on each customers’ communications preferences,” the carrier said.
     ”We want our customers to experience great service.
     “In 2019 we are making positive progress in many areas, but to modernize and future-proof our business, we need a far-reaching digitization program that allows customers to interact with us in new and innovative ways by offering them the opportunity to do everything they do with us today by phone and email via a digital platform.
     “So this commitment to the future is the natural next step.
     “I am really looking forward to having real-time intelligence to make the most informed business decisions.
     “The AFLS 8.0 platform will accelerate our digital transformation and give customers even more reasons to choose to work with Virgin Atlantic Cargo,” Dominic Kennedy declared.
More www.virginatlanticcargo.com

While the mood in Munich’s maze of exhibition halls was decidedly – perhaps surprisingly – upbeat, a deluge of negative data and forecasts were raining down.
     And for what it is worth Chicken Little, Henny Penny, Cocky Locky, Ducky Daddles, Goosie Poosie, Gander Pander, Turkey Lurkey and Foxy Loxy are all on the record here.
     Yes, our view may be a children’s fairy tale, but isn’t it so that sometimes the gloom and doom forecast turns out like the unexpected last boom in air cargo that no one, including the crystal gazers at IATA Cargo saw coming?
     Everyone was smiling at Munich and the band just played on as far as we could tell.
     Here is the reality check.

Spank That World Bank

     The World Bank, for example, downgraded its 2019 trade volume forecast by a full percentage point, predicting growth of just 2.6%.
     If correct, this year would see the slowest rate of trade expansion since the financial crisis a decade ago.
     The World Bank also downgraded its forecast for global economic growth by 0.3 percentage points to 2.6%, with the U.S.-China tariff war named and shamed as the key architect and forward risk to growth.

IATA Bearish Maybe Not Unberishable

     IATA’s forecasts tend toward the bearish and conservative, but the latest annual outlook was downright glum. It announced a downgrade of its 2019 outlook for the global air transport industry to a $28 billion profit (from $35.5 billion forecast in December 2018), with margins being squeezed by “rising costs right across the board,” including labor, fuel, and infrastructure, according to Alexandre de Juniac, IATA’s Director General and CEO.
     For air cargo, after an “exceptional performance” in 2017 of +9.7% growth, IATA said cargo demand growth slowed to 3.4% in 2018 and it forecast “flat” growth this year, with cargo volumes of 63.1 million tons marginally down from the 63.3 million tons recorded in 2018 “because of the impact of higher tariffs on trade”.
     IATA added: “Cargo yields are expected to be flat in 2019 after a 12.3% improvement in 2018, as cargo load factors fall further, and supply-demand conditions weaken.”
     According to De Juniac, stiff competition among airlines is preventing yields from rising, while the weakening of global trade “is likely to continue as the U.S.-China trade war intensifies.”
     “This primarily impacts the cargo business, but passenger traffic could also be impacted, as tensions rise. Airlines will still turn a profit this year, but there is no easy money to be made.”
     And who in air freight doesn’t hate a lack of easy money?

Follow The Herdman

     Certainly not Andrew Herdman, AAPA Director General, who glumly noted that since the last quarter of 2018, air cargo volumes had recorded declines as “unresolved disputes and the imposition of trade tariffs led to a marked slowdown in international trade flows.”

Sun Will Be Up To Morrow

     Cathy Morrow Roberson, founder and head analyst at Logistics Trends & Insights, said IATA downgrades will mean lower volumes for global freight stakeholders. “This, in turn, is resulting in stakeholders culling less profitable accounts in favor of more profitable ones,” she told FlyingTypers. “In addition, investments in operations continue in order to improve efficiencies as well as visibility into shipments.”

Tomorrow The World ACD

     Just in time for German Cargo Week—WorldACD’s latest report was also anything but uplifting, as the analyst firm noted that April 2019 was the first month in which all regions, without exception, were confronted with the growing impact of adverse market movements that started last September.
     “For both incoming and outgoing air cargo, each region returned year-on-year volume figures worse than the first quarter of the year, underscoring the clear slowdown in global business.”
     The withdrawal of more capacity could be one option for carriers. “Airlines will continue to park freighters to equalize with demand, however belly capacity will continue to fly with associated operating costs,” said Peter Stallion, an air cargo derivatives broker at Freight Investor Services.
     “This makes the supply/demand element far less flexible than in sea-freight given the dual-use requirement for the aircraft. As such, parking freighters won’t have a considerable impact in supporting rates. Rather, it aligns carrier costs with demand.”
     Looking ahead Herdman says, trade tensions and the further erosion of business confidence could undermine the growth prospects of Asian carriers going forward. “The region's airlines are proactively exploring new opportunities for growth, whilst carefully managing capacity expansion and implementing measures to contain costs in a bid to navigate successfully through the ongoing challenges,” he added.

Cargo Has A Friend In Fried

     FlyingTypers is adept at finding rays of light in the murk and, thankfully, BrandonFried, Executive Director at The Airforwarders Association based in the U.S., stepped up to the plate.
     “Change is the one constant for which forwarders are always prepared and the current uncertain global situation continues to bring lots of challenges,” he said. “However, while the headwinds may appear strong, so are the opportunities. For instance, trucking waiting times along the Southwest border have actually resulted in an uptick in air cargo for customers unwilling to endure long clearance lines at the checkpoints.
     “As for the China-U.S. tariff situation, forwarder customers continue to rely on our members for the best alternatives in navigating the challenge by providing the most prudent transportation options possible.
     “That said, we are prepared for a less robust upcoming few months compared to the good fortunes experienced in 2018.”
SkyKing

     The supplest sanctuary at Air Cargo Europe was at Qatar Airways that was designed in muted earth tones offering quiet places and private seating on the ground floor and an imaginative series of comfortable meeting rooms up a short flight of stairs allowing for simultaneous encounters with attendees from every continent in the world.
     Appointment books were filled to the brim. At the opening of the exhibition, Guillaume Halleaux, Qatar Airways Chief Officer Cargo greeted the conference, extending the hospitality of Qatar, whilst a lovely foursome of formally dressed musicians set the musical tone of the day.
     “We are thrilled and happy to once again be part of Air Cargo Europe here in Munich to celebrate our industry, greet our business partners and of course meet everyone as 2019 continues,” Guillume said.
     As business commenced, the string quartet played on.
     Meantime word up that Qatar Airways had achieved an important first in the airline business, as Qatar Airways Group Chief Executive, His Excellency Mr. Akbar Al Baker (left) with IATA Director General and Chief Executive Officer, Mr. Alexandre de Juniac received the first “Illegal Wildlife Trade (IWT) Assessment”.
     IATA has developed IWT as part of its environmental management and evaluation system for airlines.
     “We remain dedicated to this cause, and will continue to work with our stakeholders to raise
awareness and improve detection of illegal activity,” Mr. Al Baker declared.
Geoffrey/Sabiha