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   Vol. 18 No. 52
Tuesday August 13, 2019

Hong Kong Chaos

Those ongoing strikes in Hong Kong are no Mickey Mouse affair, stranding thousands at Hong Kong International Airport for a second day Tuesday, August 13.
     The strikes that have plagued Hong Kong for the past months get little resonance from the government, but citizens of this special place will not be held back.
     So no surprise, when all flights out of Hong Kong from 4pm onwards on Monday were cancelled. As this is written on Tuesday morning in New York City, flights were limping back into business after thousands of anti-government protesters occupied the airport terminal building, following another weekend of clashes with police.
     The Hong Kong chaos deepens with that well-publicized and 'keenly felt by business' tariff war between the U.S. and China.
     The question is, what impact will all of this have on the annual “Christmas Rush” when air cargo carriers look to fill out a rather lackluster 2019 with some bellies and main decks loaded with high value goods.

Go-To Cathy

Cathy Roberson     Cathy Morrow Roberson, a smart thinker about these things, whose Logistics Trends & Insights began as a stream and now is a go-to torrent of useful information in transportation, says, “At this time I do not see the situation in Hong Kong impacting the Christmas rush.
     “Delays in cargo are expected and as such airlines and/or shippers may look to alternative airports to use until the situation in Hong Kong is settled.
     “However there will be a short-term bump in cargo as shippers look to front-load ahead of the tariff deadlines of September 1 and December 15.
     “This impact will ultimately have a trickle-down effect on the rest of the supply chain—warehousing, truck and rail demand for domestic storage/transportation - all of which will see spikes in rate increases.
     Cathy is looking for a Merry Christmas but she also advises stakeholders to think smart & plan ahead.
     “It’s tough for companies, but to mitigate such risk as much as possible is necessary, particularly in a global environment.
     “Risks are a part of the business and need to factor into business practices as much as possible.
     “Solution offerings such as Resilience360 can be beneficial for companies to understand risk impacts on their overall business.
     “In addition, technology solutions including forecasting tools and WMS and TMS will be beneficial to forecast/manage inventory, warehousing and transportation needs.
     “Lastly, supply chains should not be considered static, but instead should be reviewed and tweaked on an ongoing basis in order for risk management as well as from a competitive standpoint,” ‘Go-To Cathy’ Roberson advises.
     Earlier this month after Carrie Lam, Hong Kong’s chief executive, said in her first public remarks that the city “has become unsafe and unstable,” and that “a series of extremely violent acts are pushing Hong Kong into very precarious circumstances,” shippers can wonder what else is ahead.
     Meanwhile any notion that the news going forward might be good was swept away, as Hong Kong home base carrier Cathay Pacific saw its profit report sink, and chief executive Rupert Hogg threatening staff saying, “those who support or participate in illegal protests” would face disciplinary action that “could be serious and may include termination of employment.”

Hong Kong cargo pallet burning

     Disaster struck while all of that was going on when somebody torched a cargo shipment pallet in what airport police reported was deliberate arson over in the HKIA cargo area.
     Flames seen billowing from a cargo shipment bound for Taipei were quickly extinguished and a man was arrested, police said.

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Virgin Parties Times 30
Trade Shows
That Matter
A Love Poem
To Air Cargo
By Richard Malkin

Dominic Kennedy and John Giannitelli

As Virgin Cargo marked 30 years of service to the U.S., an intimate gathering with summertime Manhattan under the watchful eye of the glorious Empire State Building served as a celebration point.
     This was an understated fun event with local cargo people, who showed up and were shown a good time, with lots of great food and conversation in this splendid setting.
     Dominic Kennedy, Managing Director-Virgin Cargo greeted the gathering proclaiming “thanks for your partnership and for your faith in our product.
     “We never forget how important you are and truly appreciate your support, whilst looking forward to some exciting plans ahead.
     “Virgin is opening service to Tel Aviv in September, and that means new options next month as that service takes off,” Dominic said.
     Also, during September we move into our new purpose built facility at Gatwick to better serve our customers,” Dominic declared, as the band played on.


Customer Country

Usha, Razeena and Carlos of International Bonded CouriersIBC Easy As ABC . . . Meet Usha Ramdass, Razeena Chitaman and Carlos Nolivos of International Bonded Couriers (IBC), a company located at Rockaway and Baisley Boulevard in the tenderloin of the JFK Airport cargo area in New York.
     “I absolutely love Virgin Cargo,” cooed Usha, “they are always there for us,” she said.
     IBC, if you are keeping track, is a pioneering courier and express company founded here in 1979.
     IBC has deep connections in Latin America, but these ebullient folks radiate spirit, passion and dedication that is all New York.

Lynn Zeuner and Steve KitsonShades of Marty Brautman . . . Likewise as stalwarts of the New York shipping community are Lynn Zeuner and Steve Kitson of Hemisphere Air Cargo.
     Hemisphere is yet another company in the community that represents long and deep service ties to the industry that goes way way back.
     Lynn is a genuine first generation “woman in air cargo” having started at Hemisphere in 1968, when the immortal Marty Brautman founded the company.
     Steve, (who shortly after our talk won a grand prize for two on VS, New York to London) began in USA air cargo in 1974 at Shulman Airfreight.
     “Virgin Cargo takes really exceptional care of us,” Lynn said.
     “They are always there through thick and thin, with the best customer service and a willing attitude to do the right thing,” Steve added.
     “For a company like ours, keeping promises and delivering reliability is quite important.
     “So,” Lynn said, “we celebrate Virgin Cargo at 30 and look forward to many years ahead.”

Aerial Lifeline to Bangladesh . . .      Here are Feadal Arafat and Sunny Hassan, just two hardworking cargo guys from EZ World Cargo Inc., located in Melville, (Long Island) New York.
     “We use Virgin Cargo as a highly-valued and trusted partner to move our shipments,” Feadal declared.
     “In our effort, our slogan is 'while others fly we soar your cargo'. Virgin Cargo helps us keep that promise every day,” Sunny smiled.

Dominic Kennedy and Carol Lion

Lion’s Share . . . “This is a real nice party, and Virgin Cargo got it just right,” said Carol Lion.
     Carol gets a nod and thank you for a lifetime in logistics, that commenced 51 years ago from Dominic Kennedy, ‘Dom’, to all gathered in Manhattan this evening.
     “Some amazing people!” Dom declared.
     Carol serves as VP sales at Axis Global Logistics, a 3PL with eight office locations and over 1,500 agents worldwide.


Chuckles For August 21, 2014

Turhan Ozen
     We asked Turhan Ozen, top cargo officer at Turkish Cargo, how goes business and how was that big move from Ataturk Airport, and his reaction is a broad smile, not a weary one.
     The idea that an airline cargo division could pack up and move half of its operations from one airport to another, now accomplished on time and apparently without a hitch, Turhan eases back in his chair and smiles.

Smooth Moves

     As August 2019 gets underway, no doubt some big challenges are clearly in Turhan’s rear view mirror.
      Right now, it is all about revenue optimization, systems introduction and expansion as Turkish Cargo moves inexorably toward positioning itself as the once and future center of the trading world.
     Today Istanbul, with head and heart in Europe and Asia, finds itself in 2019 with the newest and greatest aerial gateway on both continents.
     Moreover, Turkish Airlines is an airline that is indeed the 21st Century cargo resource from Turkey to the rest of the world.

Cargo Transfer Facility of The Future

     Until late 2020, and the completion and debut on the world stage of its ‘cargo transfer facility of the future’ at Istanbul Airport, the challenge during the interim is moving some cargo via the expansive number of belly freight destinations delivered via the new airport (IST) of Istanbul and the all-cargo operations that are still at work from the old Ataturk.

Growth Despite Downed Market

IST New Tower     But it’s all good to hear Turhan tell it, in his usual upbeat manner.
     “IST will have it all,” Turhan explains.
     “Our program to maintain sustainable growth is still working, although the markets are quite weak,” Mr. Ozen said.
     Turhan said he is looking forward to expanding the Turkish Air Cargo footprint worldwide as the tri-fecta of a new airport, new aircraft and additional destinations, drive action at Turkish Cargo, unseen before in many decades.
     Here is one, if not the fastest growing air cargo air force in the world.
     “We are fresh and everybody else is tired,” Turhan seems to say as he recites chapter and verse of the plan.
     “All the bells and whistles, and some things you may not expect are part of our world-class new cargo facility at IST that is scheduled to open late 2020.
     “On the ground and in the air, this cargo facility is a game changer with every enhancement.

Building Gateway Istanbul

     “Initially our cargo terminal will feature two million tons operational capacity per year, and by completion of all phases, the terminal capacity will be doubled up to four million tons per year.
     “While the Mega Hub is being constructed, our belly cargo operations are being handled from a 40.000m2 satellite facility which offers total capability.
     “All of our cargo services will continue to be operated from both airports, with main deck freighters from Ataturk and belly cargo operations, as mentioned, from the new airport until late 2020 when the ‘Mega Hub’ debuts here.
     “Happy to report,” Turhan assures, “no lack of investment in systems and attitude either at the ‘temporary’ cargo operation at the new airport.

First Reaction For IST

     “In fact, our feedback is quite positive all around,” Turhan proclaimed, noting shippers’ comments included:
     “Your ‘satellite cargo operation’ service at Istanbul Airport is excellent and not at all temporary with a full menu of capabilities and services.”
     “Nothing will come between this pledge to our global customers to always deliver the goods,” Turhan Ozen declared.
     “As example, during building of the ‘Mega Hub’, we are operating a dedicated cargo corridor between the two airports to move cargo in both directions with over 30 trucks covering the distance around the clock, between Ataturk and new Istanbul Airport located on the Black Sea.

Turkish Cargo Omits Word Terminal

     “We have thought about our cargo business in detailed terms, up and down the line.
     “As we move ahead, Turkish Cargo will of course talk about our capabilities as we extend our brand worldwide.
     “When it comes to handling air cargo our brand will no longer use the word ‘terminal’ to describe the place where we transfer everything from high value to pharmaceuticals and other perishables, pets and animal and machinery shipments, clothing, auto parts you name it.
     “The world of Turkish Cargo is poetry in motion; a ballet of highly trained people operating advanced cargo transfer facilities that are developed to move forward the art of air cargo.
     “The words ‘cargo terminal’ no longer exist, at Turkish Cargo,” Turhan Ozen beamed.

Where We Want To Be

     “Some years ago we developed and charted a strategy with the objective to rise in terms of schedules, volumes, meeting customer expectations, and other goals, all with the aim of delivering ourselves in to the future.
     “Although the market in 2019 is challenged, for Turkish Cargo we are where we wanted to be at this point, in terms of volumes and meeting or exceeding customer expectations and satisfaction with our offering.
     “Most importantly has been the rise for Turkish Cargo in how the customer views our offering.
     “But having come to the realization last August, that 2019 perhaps into 2020 would not match 2017 and 18, we redoubled our effort where we can control outcomes in customer service, in going the extra mile for our customer by letting them know in word and deed that we never forget how important they are.

About The Pessimists

     “Our numbers are where we expected, and continue to increase,” Turhan said, “but no doubt air cargo is into some kind of a period of readjustment.
     “It is a bit of a paradox right now in air cargo.
     “Last year this time air cargo people were over the moon with the good numbers.
     “Now that things have slowed a bit, I hear some people in this business talking in pessimistic voices.
     “We saw this coming, as mentioned, last year, and have rethought, rescheduled, refined and adjusted our offering to keep pace and stay ahead of the times.
     “As example, you do what you can of course, so very high on our list is making sure that the promise is kept and we open our new Mega Hub at IST in 2020,” Turhan Ozen said.
     “Everyone knows that there are ups and downs.
     “We are aiming for Turkish Airlines at the top of world cargo rankings by doing what comes naturally.
     “There is no slow down in our dedication to be the very best,” Turhan Ozen said.
Geoffrey Arend

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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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