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Vol. 18 No. 65	Tuesday October 15, 2019

With the environment increasingly under the microscope, United Airlines stands alone as the only USA flag carrier to utilize biofuel.
Perhaps overlooked in the general rush of things on June 5th was United’s Flight for the Planet, the most eco-friendly commercial flight of its kind in the history of aviation, as World Environment Day was celebrated everywhere.

United Makes Airline History

June 5, 2019 was also the day United became the first airline in the world to demonstrate all of the following key actions on a single commercial flight: utilization of sustainable aviation biofuel; zero cabin waste efforts; carbon offsetting; and operational efficiencies.

Eco Los Angeles Since 2016

The flight departed from gate B12 at United's hometown hub of Chicago O'Hare for its "eco-hub" in Los Angeles, where sustainable aviation biofuel has helped power all the airline's flights from the Southern California hub since 2016.
United has said that it intends to reduce its carbon footprint by 50% by 2050.

Sustainable Aviation Biofuel

United has powered the Flight for the Planet using a 30/70 blend of low-carbon, sustainable aviation fuel provided by Boston-based World Energy, and traditional jet fuel.
The biofuel alone achieves a greater than 60% reduction in greenhouse gas emissions on a lifecycle basis compared to traditional jet fuel, and using biofuel is one of the most effective ways an airline can reduce its impact on the environment.

The One & Only

     United recently renewed its contract with World Energy, agreeing to purchase up to 10 million gallons of cost-competitive, sustainable aviation biofuel over the next two years.
     United was the first airline globally to use sustainable aviation biofuel on a continuous basis and the only airline in the United States to currently do so.
     “United's Flight for the Planet represents yet another innovative initiative the airline has undertaken to reduce its overall footprint and further ensure its reputation as the world's most environmentally conscious airlines,” the carrier said.

United Effort Moves The World

     Several of United's most significant environmental achievements include:
     • Becoming the first airline globally to use sustainable aviation biofuel on a continuous basis, marking a significant milestone in the industry by moving beyond test programs and demonstrations to the everyday use of low-carbon fuel in ongoing operations.
     • Investing more than $30 million in California-based sustainable aviation fuels producer Fulcrum BioEnergy, which remains the single largest investment by any airline globally in sustainable fuels.
United's agreement to purchase nearly 1 billion gallons from Fulcrum BioEnergy is the largest offtake agreement for biofuel in the airline industry.
     • Becoming the first airline to fly with Boeing's Split Scimitar winglets, which reduce fuel consumption by an additional 2 percent versus standard winglets; United is the largest Scimitar winglet operator today, with nearly 400 aircraft equipped with these winglets.
     • Becoming the first U.S. airline to repurpose items from the carrier's international premium cabin amenity kits and partnering with Clean the World to donate hygiene products to those in critical need.

Also United For The Birds

     United is partnering with Audubon International to protect raptors – including hawks, owls and kestrels – in and around United's hubs and resettle the birds of prey at habitats where the species are more likely to thrive.
     For more information on United's commitment to environmental sustainability, visit united.com/ecoskies.

     To view more on Eco-Skies, click here.

Her Art Here Winners Tsungwei Moo and Corinne Antonelli

“Her Art Here” is an original spirited contest, created to find and uplift underrepresented women artists by providing them with a chance to have their work painted on a canvas like no other—a Boeing 757 plane.
The fact that UA donated a brace of arguably the most beautiful big twin-jets ever built, just makes this story even better.
While 51% of today's artists are women, less than 13% of art on display in museums is by women artists according to The National Museum of Women in the Arts.
Having their designs painted on a plane (roughly 3,666 times larger than the typical 18' x 24' canvas) provides these women with a traveling canvas that will fly 1.6 million miles a year, or 476 cross-country trips on average.

Two Works of Art Now Aloft

We learned of two B757 aircraft named “California” and “New York/New Jersey, that have been given the treatment by artist winners Tsungwei Moo and Corinne Antonelli.
Here the time lapse transformation of the Boeing 757 design, created by San Francisco resident and artist Tsungwei Moo, is a tribute to the Golden State where United operates two major airport hubs, one in Los Angeles and the other in San Francisco.
Her design features quintessential California imagery including sunglasses, palm trees and the Golden Gate Bridge. Tsungwei’s creation was also shaped by her personal journey. The talented artist grew up in Taipei before emigrating to San Francisco 14 years ago aboard a United flight.
“It’s truly a dream come true!” Tsungwei Moo exclaimed.
“The vibrant colors, sunshine and subject matter make it California.
“I could never imagine one day my art will be displayed on a United Airlines plane which brought me to the United States.
“There are no culture borders in art and it doesn't matter my status as an emigrant female artist.
“This plane has its mission now, to bring more joy into people’s life, connecting people and uniting the world through experience art,” she said.

New York/New Jersey

“It still feels like I am dreaming!” said Corinne Antonelli, who created New York/New Jersey (empennage pictured here.
“I have seen the design on paper countless times, but now to see it, at its full scale in the physical world, there are no words to describe how proud I feel.
“My goal as an artist is to have people experience my art rather than just view it in a gallery, therefore having it displayed on an airplane has certainly been the most rewarding feeling I’ve ever experienced in my art career,” Corrine declared.

     For forwarders and shippers, the key challenge of the coming months will come from the higher costs that implementing new environmental shipping regulations will impose on global supply chains.
     From January 1, 2020, new International Maritime Organization regulations will put a 0.5% cap on sulfur content in marine fuels globally, down from a maximum of 3.5% now. With oil prices rising, the exact cost of the new fuels is not yet known for certain, but with low-sulfur fuels significantly more expensive, container line shipping executives have called on supply chain partners to share the burden of rising fuel costs, which they describe as an economic hit.
     Some analysts have suggested that if carriers fail to pass on the full cost to customers then a further round of liner consolidation or bankruptcies could result.
     The new regulation could also see more slow-steaming and use of transshipment strategies as carriers seek to mitigate the expected higher operating costs. “The logic is that as ships’ sailing speed is reduced and round voyages are extended, carriers will drop ports from rotations to ensure that transit times to key points remain competitive,” said shipping analyst Drewry. “Fewer direct port calls will induce greater need for transshipment and feeder operations.”
     None of which improves the service reliability performance liner customers should expect.
More positively, contrary to many predictions, container lines have at least indicated that availability of low-sulfur fuels in leading ports was unlikely to be a major problem, and the IMO has set up a reporting system for operators unable to source fuel at smaller ports.
Forwarders are now negotiating a variety of methods to share the cost of low-sulfur bunker fuels once container lines start introducing them. But they would still like more transparent charging structures from carriers, not least in the implementation of the Bunker Adjustment Factor (BAF) charges that lines usually use to pass on fuel costs to customers.
Dominique von Orelli

     Dominique von Orelli, (right) Head of Global Ocean Freight at DHL Global Forwarding, welcomed the emissions reduction efforts of the IMO, which fit in with DHL’s own extensive emissions-cutting program. He said that although the exact cost increases due to IMO 2020 were not yet known and were very difficult to estimate, a significant hike was expected. “We expect ocean carriers to begin charging additional fees in the fourth quarter of 2019 when the new fuels are introduced on container ships,” he told FlyingTypers.
     “There’s no industry standard [for passing on costs] but we promise our customers to be very transparent. We will also publish our own Danmar BAF which will simplify the calculation for the customer regardless of the ocean carrier used.”
     However, while he believes the market will get used to BAFs being separated from freight rates and therefore subject to change, he warned lines not to try and charge for low-sulfur fuels until their price level was transparent.
     “Acceptance [of floating BAFs] is increasing significantly and will become the standard for everyone,” he said. “BAF based on the new low sulfur regulation can only be charged by the carrier and will only be paid by the customers when the regulation comes into force or when carriers start to bunker low sulfur fuel.
     “As things stand today, the BAF cannot be based on low sulfur costs. We don’t accept this and neither do our customers.”
     Panalpina’s concerns rest on the lack of uniform global policing of regulations and provisions through the IMO, given that each individual signatory nation is responsible for determining its own enforcement policies, and these vary from jurisdiction to jurisdiction.
Joerg Twachtmann

Joerg Twachtmann, (left) Panalpina’s Global Head of Ocean Freight FCL, said the forwarder would pass on costs to customers as fairly as possible. “We have been developing a transparent and competitive pricing mechanism to cut the best deal for our customers,” he said. “We now have a globally competitive bunker mechanism that will increase visibility for customers and ease the transition towards new fuel types to comply with the sulfur limit.”
Klaus Lysdal

     Klaus Lysdal, (right) Vice President of Operations at iContainers, told FlyingTypers that customers had been surprisingly unconcerned – or unaware - of the looming shipping pricing increases.
     “I think it's a case where the larger clients we have generally stay pretty well informed, so they have an idea of what is happening, where many of the others are not shipping that often and it is really not that big a concern for them,” he said.
     iContainers will pass on extra costs to customers as they are presented by carriers. “The thing is that the carriers have different approaches to how each of them implements the increases they need to cover the additional cost,” he said.
     “So, the most transparent thing we can do at this point is pass through the charges the way we receive them. Maybe there will be a point later on where things become a little more uniform.”
     He said carriers were still jockeying for position about how to charge customers and there could be a shift to more use of the spot market as a result.
     “In terms of cargo from Asia, there is a real chance that it will become even more spot market-based for the U.S. as well as for Europe,” he added. “It's generally only the top tier importers that can potentially obtain competitive rates from Asia here.
     “We are advising our clients that increases are on the horizon. For us, the increases end up being a pass through.”
GDA

It said that only the good die young. To that, we might add nothing that is good ever dies.
Joe Badamo, a pillar of the JFK International Airport community lost his battle with cancer on Sunday October 13th and passed away in Massapequa, Long Island, New York at age 65.
Rene Espinet, Joe Badamo and Willie Mercado

Rene Espinet, Joe Badamo and Willie Mercado

     Joe, for many years serving as President, has been the glue that helps hold the JFK Air Cargo Association together. He also co-led the JFK Cargo Sales Managers Club.
     We used to see him at CNS Partnership. Always a smile and a bright hello, and you could not help notice that good would always be shining out of this guy.
     “Never a bad word, good times or tough,” said his assistant Kathleen at Silk Way Airlines where Joe held the post of VP Sales North America since 2007.
     Prior to Silk Way Airlines, Joe served at Evergreen and at KLM Cargo, where he began his career in 1980, rising to Director of Sales and Operations.
     Joe studied at St. John’s University and achieved his MBA, at C.W.Post.
     Mike White, president CNS said, “Joe built the Silk Way Airlines brand in the U.S. I have known him since 1994 when he worked for KLM. Joe cared deeply about the JFK cargo community and the air cargo association. He was all about the people and always available to help.”
     Rene Espinet, his close friend and colleague at the JFK Air Cargo Association added, “Joe will be sorely missed by his extended family, “the entire JFK Air Cargo Community” where Joe gave his time and talent. His focus went beyond “Air Cargo”... he took pride in leading the Toys for Tots Campaign at Christmas and providing Turkeys to less than privileged families during Thanksgiving. He also advocated charity toward the wounded warriors.
     “While Joe was a relationship-driven representative to many companies like KLM, Evergreen International and Silk Way Airlines in JFK over the years, his genuinely kind spirit and support toward humanity will be a lasting part of his legacy. Before passing Joe wanted to remind the community of the importance of early detection. Our prayers are with his surviving family," Rene added.
     Joe Badamo is survived by Cathy, his wife of 35 plus years, three children and three grand children.
     Happy landings always, dear Joe.
Geoffrey

Visitation hours are scheduled at Massapequa Funeral Home, 4980 Merrick Road Massapequa, Long Island New York (516) 882-8200. Wednesday 7:00 pm- 9:00 pm. Thursday 2:00 pm– 4:00 pm and 7:00 pm– 9:00 pm
A memorial service will be held at 10:00 am on Friday at St. Rose of Lima Roman Catholic Church, 2 Bayview Avenue, Massapequa, NY
In lieu of flowers, donations can be made in Joe’s name to St. Jude’s Children Hospital.

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