ACW 12 March 18 by Azura International

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22/02/2018 15:00

The weekly newspaper for air cargo professionals Volume: 21

Issue: 10

12 March 2018

dnata opens Dallas Fort Worth perishable centre

nata has officially opened its 37,000 square foot cargo centre that includes the only dedicated cool-chain perishable cargo facility at Dallas Fort Worth International Airport. Developed as part of its agreement with AirLogistix USA, which it acquired last year, dnata opened the facility in cooperation with the Dallas Airport Authority, costing $3 million and creating up to 50 new jobs. The facility features 18,000 square feet of space dedicated to cool-chain solutions with experienced staff to ensure that perishables such as pharmaceuticals, fruits, vegetables, fresh fish and seafood, meat and flowers maintain their freshness during the transportation process. Having received IATA CEIV Pharma accreditation, Japan Airlines was the first launch customer to experience the state-of-theart facility from 1 November 2017. Dnata USA chief executive officer, David Barker says: “There is a clear need to increase capacity and ensure our customers have the flexibility that meets their specific needs via our cool-chain solutions.”

DPDHL ON THE ROAD TO ACHIEVE GOALS CONTRACT WINS GET WFS OFF TO A FLYING START

Dallas Fort Worth executive vice president global strategy and development, John Ackerman says: “Shippers in many trade lanes between Latin America and Asia with perishables like salmon, berries, and asparagus, can save as much as two days by using DFW over other airports. “DFW’s strength lies in its airline network of passenger service with daily belly cargo capacity between Latin America and Asia combined

with our excellent freighter services to Asia by nine Asian air freighter operators.” Dnata has also acquired a cargo facility in Houston and has significantly expanded its global cargo network with 18 new facilities in the past five years. Dnata handles over 2.8 million tonnes of cargo at 43 airports worldwide, and dnata USA employs 4,200 employees and operates in 18 airports and 13 postal facilities.

and CEIV consulting, Ronald Schaefer (pictured right) presenting the certificate to Airport Authority Hong Kong chief executive officer, Fred Lam (pictured left). IATA regional vice president for North Asia, Zhang Baojian says shipping pharmaceuticals products is the fastest growing segment in the airfreight industry, saying: “Having undergone a rigorous assessment for the CEIV Pharma certification, HKIA’s community stakeholders

are well placed to serve this important segment of the air cargo industry. Pharmaceutical companies can also have the confidence that the cold-chain integrity of their products is maintained.” Lam says: “Pharmaceutical air cargo shipments has a strong market outlook, and this certification serves a testimony of HKIA’s dedication in continuously enhancing its air cargo facilities for even higher efficiency and reliability.” Pharma tonnage at HKIA has grown 12 per cent annually in the past four years, and is expected to grow annually at over 16 per cent from 2016 to 2023. AA plans to invest HK$16 million to purchase 21 more cool dollies this year to maintain pharmaceutical products at their specific temperatures against the ambient temperature during ramp transportation. HKIA has more than 5,000 square metre of cold chain storage in its three cargo terminals, providing dedicated rooms at a range of temperatures from -20C to +25C.

IATA recognises Hong Kong as CEIV Pharma partner airport HONG Kong International Airport (HKIA) has been recognised as a partner airport of the IATA Center of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma) programme. The globally recognised standard for pharmaceutical airfreight shipments is designed to help the industry develop a network of pharmaceutical trade lanes that meet consistent cold chain management standards and assure product integrity. HKIA’s three cargo terminals, Asia Airfreight Terminal, Cathay Pacific Services and Hong Kong Air Cargo Terminals, and three ramp handling operators Hong Kong Airport Services, Jardine Aviation Services and SATS HK, along with carrier Cathay Pacific Group have achieved IATA CEIV Pharma certification, demonstrating compliance with industry standards for handling pharmaceutical products. A ceremony was held at the FlyPharma Conference Asia 2018 on 5 March, with IATA assistant director of cargo, ground operations

KERR TAKES OVER AT CARGOLOGICAIR

E-FREIGHT IS THE PAST, THE FUTURE IS DIGITAL

Demand remains strong in January

AIR cargo demand has continued to grow at a robust rate following an exceptional year in 2017, the International Air Transport Association (IATA) reports. Demand measured in freight tonne kilometres (FTK) rose by eight per cent year-on-year in January, up from the growth of 5.8 per cent in December 2017. The strong growth in January follows on from an exceptional year in 2017, when FTKs surged by nine per cent, the strongest growth since 2010. IATA says the continued positive momentum reflects that demand drivers for air cargo remain supportive, with global demand for manufacturing exports remaining buoyant and meeting the stronger demand is leading to longer supply chain delivery times. The association says demand for air cargo may strengthen as a result, with companies seeking faster delivery times to make up for longer production times. IATA director general and chief executive officer, Alexandre de Juniac says: “With eight per cent growth in January, it’s been a solid start to 2018 for air cargo. That follows an exceptional year in which demand grew by nine per cent. We expect demand for air cargo to taper to a more normal 4.5 per cent growth rate for 2018.”

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21/02/2018 15:04

NEWS WEEK Panalpina breaks volume and profit records in 2017

analpina has ended 2017 with record volumes and profitability for airfreight, with the whole company seeing growth in revenue and profits. Airfreight volumes increased eight per cent from 921,400 tonnes in 2016 to 995,900 tonnes in 2017, the highest in the company’s history. Gross profit per tonne was down one per cent to 642 Swiss francs (CHF) but airfreight profit measured in earnings before interest and tax (EBIT) increased from CHF 80.8 million to CHF 110.3 million. The EBIT-to-gross-profit margin came in at 17.3 per cent compared to 13.6 per cent in 2016. Panalpina chief executive officer (CEO), Stefan Karlen (pictured) says: “2017 ended with record high volumes and profitability in Air Freight. We secured extra capacity early on in the year, well ahead of the exceptionally strong peak season when global capacity became scarce. Consequently, we were able to serve our customers in a very challenging market

NCA signs codeshare deal with Cargolux NIPPON Cargo Airlines (NCA) is continuing to enter into business partnerships by agreeing to start codeshares of cargo flights with Luxembourg based Cargolux Airlines International. Subject to government approval, the two airlines will start the codeshare on 27 March 2018 from Luxembourg to Tokyo’s Narita International Airport operating on Tuesdays. The flight, which will operate under the codes CV9442 and KZ8039 will depart Lux-

embourg at 19.40h and arrive in Tokyo at 16.25h the next day. This is the third strategic partnership Nippon Cargo Airlines has signed in a month, following deals with Singapore Airlines Cargo and All Nippon Airways. The Singapore Airlines deal was a memorandum of understanding building on existing block space agreements and adding codeshare services, and the ANA deal will include codeshares and a blockspace agreement.

where others failed.” For the whole company, net forwarding revenue grew from CHF 5.2 billion to CHF 5.5 billion and consolidated profit increased from CHF 52.3 million to CHF 57.5 million. The Panalpina board of directors has also proposed electing Sandra Emme to the board, replacing Chris Muntwyler, who is not standing for re-election. Emme, a 46-year-old German national has held senior positions at Google since 2011 and has previously served as CEO and co-founder of companies in the business areas of online marketing and IT software.

Barber and Cesarone given new roles

UPS has made changes to its senior management team, with Jim Barber being promoted to the role of chief operating officer, and Nando Cesarone taking over as international president. Barber has served as president of UPS International since 2013, with responsibility for distribution, forwarding, small package delivery, brokerage and customs compliance. He assumed responsibility for the Supply Chain and Freight Forwarding units in 2015,

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and also led UPS’s investment in emerging markets including the creation of the ISMEA operating district to capture opportunities in south-to-south trade in the Indian subcontinent, the Middle East and Africa. Cesarone, a native of Toronto, Canada who has worked at UPS for 27 years, will be responsible for all UPS International operations. He was appointed president of UPS’s European operations in 2016.

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NEWSWEEK Kerr takes over at CargoLogicAir Flexport and WGA to fly together

mitry Grishin (below) has handed over the reins at CargoLogicAir to the new chief executive officer (CEO), David Kerr (right) who joins from Etihad Cargo. Kerr joined CargoLogicAir having left his role as senior vice president for Etihad Cargo at the end of 2017, bringing more than 20 years of experience in the airline sector with him gained from senior roles at companies in Europe, Asia and the Middle East. The new CEO’s key responsibilities will focus on the future development of CargoLogicAir through

further fleet expansion and network development, as well as strengthening the airline’s reputation for quality of service. Grishin was instrumental in the establishment and launch of CargoLogicAir as well as the initial network development. CargoLogicAir is the only British cargo airline operating flights from the UK, connecting customers with important markets around the world including Frankfurt, Mexico City, Atlanta, Houston, Abu Dhabi, Dubai, Hong Kong and Tel Aviv. Its fleet consists of three Boeing 747 Freighters including 747-8Fs.

1GSA welcomes new member for Korea THE independent GSA network, 1GSA continues to grow with the appointment of Goodman GLS as its exclusive member for Korea. The Goodman GLS GSSA business was launched in 2014 and represents Westjet, Cubana and the Leisure Cargo portfolio of 14 airlines, providing access to destinations throughout Asia, Europe, the Caribbean, Middle East and Africa. It provides a full portfolio of GSSA services to airlines covering sales and marketing, reservations, revenue accounting, load planning

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and handling supervision. The company can also manage import operations where required, provide ground transportation including door-to-door and courier services, and assist airlines with their landing rights applications. Goodman GLS chief executive, H.E. Shin says: “Joining this growing group will enable us to increase our profile internationally, as well as providing our fellow members with a strong presence in the important Korean market.”

WESTERN Global Airlines has signed a three year agreement with Flexport to provide scheduled Boeing 747-400 Freighter services between Hong Kong and Los Angeles from 5 April. The initial service from April will be a round-trip twice per week between Hong Kong and Los Angeles growing to three times a week in September. Western Global founder and CEO, Jim Neff says the partnership is a significant milestone for both companies, saying: “Both Flexport and WGA were founded in 2013, and both have taken customer-focused approaches based on new technology. They have grown rapidly to become leaders and

innovators in their respective business segments, and as such are natural partners in changing the airfreight dynamic together.“ Flexport CEO, Ryan Petersen says: “At Flexport, we are always striving to improve service to our clients. Our partnership with Western Global helps us achieve this goal, because we will have consistent and reliable airfreight capacity that our clients can count on.” Flexport senior vice president and global head of airfreight, Neel Jones Shah (pictured) adds: “This new partnership allows Flexport to offer predicable, affordable and a custom-tailored service to our customers with guaranteed capacity.”

Atlas Air acquires 777Fs for DHL ATLAS Air Worldwide has acquired two Boeing 777 Freighters to be operated for DHL Express by Southern Air on an ACMI (aircraft, crew, maintenance and insurance) basis. The aircraft were acquired from LATAM Airlines with the first starting service this month and the second expected to begin service at the end of the second quarter of 2018. The first aircraft was previously operated on a CMI basis for DHL Express by Southern Air, and the second will increase the number

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of 777Fs owned or operated by the company to 12. Atlas Air Worldwide president and chief executive officer, William J. Flynn says: “These 777 freighters enhance our position in this attractive aircraft type and are consistent with our strategy of growing the operations that we acquired as part of Southern Air.” Atlas is in discussions with a bank syndicate to finance the two 2012-vintage aircraft and expects to close the financing transaction during the second quarter of 2018.

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01/03/2018 16:56

NEWSWEEK Rule changes come under the microscope at the IATA Legal Symposium

pcoming rule changes especially in key markets are among a number of legal concerns flagged at IATA’s Legal Symposium in Bangkok on 1 March (Thailand minister of transport, Arkham Termpittayapaisith making his welcome address pictured right) 2018, writes Mike Mackey. Topping out was ACAS (Air Cargo Advanced Screening), currently a voluntary programme in the US but will be a regulatory requirement “soon” according to FedEx’s managing director regulatory affairs Sarah Prosser who quoted the CPB as her source. Similar programmes are also underway in a number of other jurisdictions, with Prosser mentioning the European Union, Japan, Canada and the United Kingdom. “We’ll see a lot of new requirements in this area,” says Prosser adding there was likely to be “a lot of issues on how these things work together.” Also in the short term, of a similar nature to ACAS and already on the agenda for the mid-March World Cargo Symposium (WCS) is the modernisation of the cargo agency. This is actually a recent

and unexpected reverse for the sector. The issue looked like it was getting sorted last year with a pilot programme in Canada winning favour as some four-fifths of Canadian forwarders joined an IATA initiative. However, last November FIATA, the forwarders equivalent of IATA, raised some late-in-the- game concerns about wanting to tend cargo in a variety of capacities. “That’s created a bit of an impasse,” IATA’s deputy general counsel Carlos Tornero told the Symposium adding all sides hoped to work it out in Dallas which is hosting the WCS. One concern these legislative reforms both future and poten-

tial raise is the need to be flexible as flagged by UPS’s vp for legal and public affairs James Millar who also mentioned Third Party Canines and Fire Containment. This looms large because with each UPS B747 flight carrying as many as 25,000 parcels the Atlanta-headquartered deliverer has as many as 50,000 customers to serve. Maintaining flexibility is important on a regional level LATAM’s senior VP legal affairs Juan Carlos Mencio stressed if the industry is not to be further stifled. Mencio’s particular concern is maintaining wet leasing and interchanging, where a plane goes to a defined airport for a defined period. This has allowed the LATAM group to lease planes but move them through their various national companies as the seasons require something making LATAM more aggressive and dynamic as a company. “It does pose some issues of safety and security the regulators will have to review,” says Mencio. This is a particularly regional problem with US regulators being OK with this unlike their Latin American and European counterparts who have resisted Mencio reported.

DPDHL on the road to achieve goals DEUTSCHE Post DHL Group took another major step on its journey to achieve its strategic and financial goals with revenue and profits growing in 2017. Revenue increased by 5.4 per cent to €60.4 billion and consolidated net profit was up 2.8 per cent to €2.7 billion, with profit measured in earnings before interest and tax (EBIT) increasing in all divisions. Group EBIT was up 7.2 per cent to €3.7 billion, with Post EBIT increasing 3.9 per cent to €1.5 billion. Among the DHL divisions, Express EBIT increased by 12.4 per cent to €1.7 billion and Global Forwarding by 3.5 per cent to €297 million, while Supply Chain EBIT was down three per cent to €555 million. Deutsche Post DHL Group chief executive

officer, Frank Appel (pictured) says: “In 2017 we took another major step on the road to achieving our strategic and financial goals for 2020. With our international focus and our firm orientation towards the fast-growing e-commerce market, we implemented the right measures early on and are now positioned better than ever for future growth.”

ACW REWIND

BRITISH all-business class airline Silverjet stepped in to ensure that British rockers Kaiser Chiefs made their TV appearance and keep their fans happy in the Big Apple.

Silverjet cargo service is a riot for the Kaiser Chiefs Vol 10 Issue 17 30 April 2007 BRITISH pop idols Kaiser Chiefs put the London Luton - Newark cargo service on business-class carrier Silverjet to the test when the band needed to move 800 kg of equipment for a TV performance in New York. With 29 valuable pieces of band equipment safely stowed in the bellyhold of the Silverjet B767, the Leeds-based band touched down at Newark Liberty International airport in time to appear on the Conan O’Brien show that same evening. THE cargo department at Bahrain Airport Services (BAS), which handles most of the airfreight at Bahrain International airport, has once again handled the complex logistics exercise required to bring the F1 motor race to the Gulf kingdom.

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05/03/2018 14:32

IATA WCS PREVIEW

Air cargo to stop talking and take action

action,” says IATA (International Air Transport Association). WCS 2018 will feature plenary sessions, specialised tracks, workshops and executive summits, tackling aspects related to technology, innovation, security and Customs, cargo operations and sustainability. Thirteen content tracks, four industry standard setting conferences, five workshops, three

executive summits and numerous industry meetings are the business side of the event. Many one-to-one meetings will be arranged while the ink will dry on many contracts agreed through the event. Doubtless much other business activity and personal interaction will be conducted within the hotel and in downtown Dallas away from the event. At the hotel, delegates can enjoy the JadeWaters Leisure Cove,

which offers a tidal wave of attractions; SĒR Steak + Spirits, a breed of Dallas steakhouse, poised atop the iconic Hilton Anatole hotel and boasting unparalleled views of the Dallas skyline; Media Grill + Bar casual restaurant featuring 27 televisions for sports game action, plus an array of beers, cocktails and contemporary American cuisine or the Gossip Bar, a chic bar that is a mix of colour and commentary.

Connect, Collaborate, Modernize

Former Dallas Cowboys player Drew Pearson will make a motivational speech at 3.15pm sharing a winning formula. The retired NFL player is been a regular TV presenter and travels the globe delivering motivational speeches. On Wednesday 14 March there will be tracks discussing perishables, ULDs and cargo transformation, along with a focus on the development of Dallas Fort Worth International Airport as an increasingly important cargo destinations. The afternoon sessions will look at live animals, baggage tracking, e-commerce, dangerous goods, and cargo security. On Thursday morning, the sessions will look at pharmaceuticals, cargo operations, digital cargo and cargo border management. The event comes to a close on Thursday afternoon when IATA global head of cargo Glyn Hughes will bring the proceedings to an end. After remarking on the three-day

event, Hughes will be joined by Lufthansa Cargo CEO and IATA cargo committee chair, Peter Gerber, to look at the key outcomes of the WCS. What was agreed, how it will help shape the future of air cargo and the commitments going forward will all be considered. Later, Expeditors chief strategy officer (CSO) Phil Coughlin will take the audience on “a journey of innovation and connectivity” on how “best to use” global outreach as a business model. At 3:00pm, the FACE UP! contest and finalist presentations will held. Moderated by Hughes, delegates will hear three 15-minute finalist presentations. The winning entry will be selected jointly by the panel of judges and audience members. The event will conclude with the launch of the Innovation Awards 2019: Connect, Collaborate, Modernize, presented by Hughes. At 4:15pm, Hughes will reveal WCS: 2019: Where next?

ome 1,000 air cargo leaders and more than 40 exhibitors are expected to gather for an “actionpacked” World Cargo Symposium (WCS) in Dallas, Texas (pictured) at the Hilton Antole in downtown Dallas, according to organisers. The 12th annual World Cargo Symposium will continue to “move the industry from talk to

THE three-day exhibition, held at the Hilton Anatole in Dallas, and its packed programme, is summed up by its slogan “Connect, Collaborate, Modernize”. On Monday, March 12 before the threeday event, two workshops, a summit and a forum will be held: workshops on CEIV Pharma and air cargo products are accompanied by the Future Air Cargo Executives summit. The FACE Summit is for young professionals under 36 years of age working in airfreight. The day is completed by Horizon, the air cargo innovation forum. The Monday concludes with a welcome reception for WCS delegates. The show will open on Tuesday 13 March at 9.00am with a traditional cultural performance followed by a welcome address from

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American Airlines’ Jim Butler, a keynote speech by United States Customs & Border Protection executive director of field operations, Tom Overacker, a review of the year by IATA global head of cargo, Glyn Hughes and an economic outlook by IATA’s chief economist, Brian Pearce. From 11.15am, industry experts will be on hand to discuss issues such as the record year of 2017 and the boom of e-commerce. After lunch, CITES secretary general, John Scanlon; IATA SVP for airports, passengers, cargo and security division, Nick Careen; aviation security consultant, Jennifer Haigh and Airforwarders Association executive director, Brandon Fried will make presentations explaining the various security issues the air cargo industry faces.

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IATA WCS PREVIEW

Companies will exhibit their finest products

mong those companies exhibiting at the event, London, UK-based global information technology, consulting and business process services company Wipro is demonstrating its CROAMIS (Cargo Reservations, Operations, Accounting and Management Information System) at the event. Described as a “next-gen, end-to-end air cargo management system”, CROAMIS automates the entire air cargo processes including capacity planning, sales, revenue management, cargo ground handling operations, warehouse management, freighter and charters, customer services, cargo revenue accounting, billing and claims. Some of its key features that will be on display at Wipro’s booth #229. Cargo companies are constantly looking for new and efficient ways to manage e-commerce business processes as the global market continues to evolve. Houston, Texas-based cloud software house PROS director of transportation and travel, Zeke Ziliak and PROS general manager, transportation and logistics industry solutions, Jeff Robinson will speak first hand about how companies can respond to e-commerce demands with the shift to a modern commerce strategy, such as. better anticipate customer needs, enhance the user experience, increase transparency to build customer loyalty. They can be found at the PROS booth (#420). Dynamic pricing science technology and how it leverages machine-guided algorithms to help logistics professionals offer personalized price quotes at faster speeds based on data are also in their sights. Delegates can meet CHAMP Cargosystems at booth #219, There they can find out more about the innovative and welltested technology solutions developed by CHAMP Cargosystems for the air cargo community – airlines, ground handlers, forwarders. CHAMP vice president of global sales and marketing Nicholas Xenocostas will be in attendance, as will Lee Booth – CHAMP VP global products Lee Booth and CHAMP core cargo product director Shaz Aslam will be there, along with CHAMP commercial head North America Fred (Alfred) Werginz and CHAMP head of sales, distribution services, Laurent Jossa. CHAMP Cargosystems provides the most comprehensive range of integrated IT solutions and distribution services for the air cargo transport chain. The portfolio spans core management systems, messaging services, and eCargo solutions. These include applications to meet Customs and security requirements, quality optimization as well as e- freight and mobility needs. The products and services are well known under the Cargospot, Traxon, and Logitude brands. CHAMP Cargosystems is headquartered in Luxembourg and operates offices in London, Zurich, Frankfurt and Manila.

Respected professionals will share their knowledge

THE event will attract many delegates and exhibitors not just from North America but from many countries around the world. Among the C-suite personalities and individuals expected to attend WCS are Jonas van Stekelenburg, Head of Cargo, Amsterdam Airport Schiphol (pictured above in the middle at the IATA WCS 2017); Vladimir Zubkov, Secretary General, TIACA; Sebastiaan Scholte, Chairman, TIACA; Steven Polmans, Vice Chairman, TIACA; and, Ariaen Zimmerman, Executive Director, Cargo iQ (pictured right).

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THE AMERICAS

Montevideo aims to be continental gateway

ith a relatively small internal market, Uruguay has set its stall out to become a gateway to the whole of South America, writes Neil Madden. Sandwiched between Brazil and Argentina, Uruguay has introduced an attractive tax, legal and administrative framework to transform the country into a competitive point of entry for global shippers. The results have been impressive. Montevideo (MVD) Free Airport (pictured) saw its pharma cargo in transit to other markets in the region like Brazil and Argentina grow 462 per cent last year compared with 2016 as a result of initiatives developed since mid-2015. “We inaugurated phase 1 of our pharma hub with new cold chain facilities, our information systems were improved for better traceability,

and we developed a new commercial approach to global players,” MVD Free Airport senior manager, global accounts, Hans Guiscardo tells Air Cargo Week. Global pharma and high-tech businesses have already located distribution centres near the airport, displaying trust in the early stages of its development, Guiscardo continues. “We are seeing strong interest in pharma, which is the vertical that we’ve approached more proactively,” he says. “Better traceability, temperature controls, state of the art infrastructure, GDP certification and easy access to large neighbouring markets are the main drivers behind the interest, given that these are widespread challenges faced by much of the industry.” Global pharma players are currently distributing to larger markets across South America via MVD, including cargo that is not typically airfreight. “Our multimodal capabilities help to adapt the solution to any distribution need, no matter whether the cargo arrives or leaves by sea, land or air,” adds Guiscardo. “In addition, some pharma companies are starting to centralise purchase orders at MVD, allowing for smarter stock management and just-in-time replenishment based on having safety stocks for the region at the airport. The model definitely fits pharma supply chain management from a logistics as well as a quality assurance perspective.” MVD is part of Argentinian company Corporacion America, which operates more than 50 airports and cargo terminals in Latin America and Europe. This network opens opportunities to explore tailored solutions for customers’ supply chains.

Brazilian freighter route

Currently, the MVD team is working on the creation of a freighter route to the Brazilian capital Brasilia. “We are always looking for synergies in order to find solutions to specific needs,” Guiscardo says. “This is something that clients value.” Brazil, despite an economic slowdown in the past few years, is still a powerhouse in terms of potential growth. And the new government in Argentina has started reopening the country’s economy to the world, becoming an attractive market in itself. Together both markets serve over 200 million people. But smaller markets like Colombia, Chile, Peru, Paraguay and Bolivia are also supplied from a distribution centre in Uruguay benefitting not just logistically, but also in terms of taxes and transfer prices management. Having completed phase 1 of its pharma hub project, MVD expects this to operate at near full

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capacity during the peak season. “We hope to start working on phase 2 very soon, and in parallel, we are working on some projects with strategic clients that have demanding requirements for pharmaceutical warehouses adapted for primary and secondary packaging activities,” adds Guiscardo. “We have a developable area of more than 80,000 square metres inside the airport premises, just three minutes from the runway, so the potential is there.”

Improved professionalism

The biggest challenge for the air cargo industry is to work on reliability and traceability, Guiscardo says, so that forwarders and shippers can be sure that their cargo is always under control, being handled on certified and validated infrastructure, under adequate operational standards and according to their expected service level agreements, and, of course, cost-effectively. While Latin America has considerably raised its levels of professionalism there is still work to do in terms of providing homogeneity, comments Guiscardo. There are different regulations, cultures, human capital issues, costs, infrastructure, and information systems, all of which generate a highly complex scenario that is difficult to grasp for companies with distribution needs in the region. He says it is important for global players to source and identify key partners that can help with region-specific know-how and integrated solutions. “Handling variability in a ‘last mile environment’ is much easier with a local player with stakes across the region than doing so for a number of long hauls managed from a different time zone,” he comments. “At MVD Free Airport we have addressed these complexities and set up specific plans to turn these challenges into new business opportunities.”

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19/02/2018 14:19

THE AMERICAS

Contract wins get WFS off to a flying start

orldwide Flight Services (WFS) has got off to a flying start in 2018 by winning and renewing a number of contracts in North America. The handling agent won the freight contract at Houston’s George Bush Intercontinental Airport to service Turkish Airlines’ twice-weekly flight to Istanbul, extending WFS’s existing relationship with the airline. It has also been awarded new contracts by Aer Lingus in Seattle for its four times a week service to Dublin starting in May. Over in Miami, Ethiopian Airlines has chosen to partner with WFS to support its new route to Addis Ababa, which is expected to handle some 5,200 tonnes of freight per annum. DHL Air has also renewed contracts with WFS in Kansas City and St.

Louis. Over in neighbouring Canada, WFS has signed a three year contract with Lufthansa to handle around 6,000 tonnes a year on board its services from Frankfurt. WFS senior vice president for sales and business development, Ray Jetha (pictured): “2017 was a very positive year for our stations in the U.S. and it is pleasing to see this continuing since the start of 2018 with new contracts being awarded to us from both existing and new airline customers across all of our services. “Most of these latest contracts are extensions of working relationships we have with these airline customers at other points in our network so we especially welcome their confidence in our ability to provide the same superior service, safety and security at more of the airports they serve across the US.” In January, WFS signed a 15 year lease on a 346,000 square foot cargo terminal at New York’s John F. Kennedy International Airport, projected to open in the fourth quarter of 2020 during the first phase of the Port Authority of New York and New Jersey’s Vision Plan to enhance the airport.

SBD opens new door to California

AIR cargo movements to the Inland Empire area of California and the metropolis of Los Angeles, are in the sights of San Bernardino International Airport (SBD) director of aviation Mark Gibbs. The weapon of choice for Gibbs is monetary: landing fees of one dollar per thousand pounds. “Our air cargo businesses are growing rapidly and enjoy the region’s lowest airport user fees, a Group VI runway that can accommodate the world’s largest aircraft, highly-skilled airport staff and uncongested airspace. SBD is perfectly positioned at the centre of a multi-modal transportation corridor, offering the logistics industry significant efficiencies and development options,” says Gibbs. Located 60 miles east of Los Angeles, in one of Southern California’s major transportation corridors, SBD has made key investments to support large-scale, air cargo

activities. Surrounded by interstate highways and new construction warehousing, the airport provides a compelling opportunity to the air cargo industry. According to Gibbs, depending on the ‘Californian highway’ traffic, Los Angeles can be reached in between one and four hours. This could allow SBD to compete with LAX for cargo bound for Los Angeles. “We are able to offer such low fees as we have no debt to service. We were funded on the bond market,” says Gibbs.

Water mission for Brunel Cargo LONDON Heathrow freight forwarder Brunel Air Cargo handled a shipment of humanitarian aid to Buenos Aires in late February for the International Federation of Red Cross and Red Crescent Societies (IFRC). The cargo consisted of water sanitation equipment to a stricken region in Northern Argentina where there was severe flooding. Intense rainfall, up to 290 mm in Presidencia Roque Saenz Pena, caused flooding that isolated zones across the city as well as cutting the electricity supply and causing the collapse of the sewerage system. Presiden-

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cia Roque Saenz Pena in Chaco Province, 1,100 km from Buenos Aires. Some 1,134 people were evacuated after the rains started in late January 2018. Brunel partnered with Aerolineas Argentinas to support the relief mission from London Gatwick to Buenos Aires via the airline’s hub in Cancun. The equipment was donated by Rotary charity Worldwaterworks in the UK by director of operations Hugo Pike OBE. The Rotary Water-Survival Box is essential to protect local people from water borne diseases in this stricken region.

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07/03/2018 10:25

E-FREIGHT

E-freight is the past, the future is digital

-freight is the word of the past, the future will consist of other technologies including big data, e-Cargoware chief executive, Ramesh Darbha (pictured) tells Air Cargo Week. He points out the e-freight was defined more than a decade ago, based on the technologies of the time. Since then, new technologies including artificial intelligence, distributed ledgers and big data have arrived and are changing the way the air cargo industry operates and does business. Darbha says: “Airfreight industry has to embrace digitisation at a faster pace starting with e-AWB and move onto digitising entire supply chain so we can provide end-to-end track & trace and reliability in delivery.” Electronic air waybill (e-AWB) penetration rates have been a discussion point in the indus-

try for some time, and though adoption rates are improving, they continue to miss targets set by the International Air Transport Association (IATA). Darbha welcomes the news that airfreight volumes increased nine per cent in 2017, describing it as “fantastic”, the penetration rates did not improve significantly and he is surprised that penetration in the Americas and Europe has lagged behind other continents. The good news is e-AWB penetration broke the 50 per cent barrier and hit 53 per cent in January 2018. Darbha says: “It would be good to see Europe and North Americas do some catch-up with the rest of the world on the digitisation route. E-AWB is no longer about just replacing paper air waybill, to attract e-commerce we must provide full end-to-end visibility and it starts with

electronic air waybill.” E-Cargoware is helping customers embrace new technology; along with e-freight compliance it provides API access to partner airline, handling and forwarder systems to integrate with clients in real time. Darbha says: “We’ve launched a platform called fr8booking.com for the forwarders to quote, book and complete e-AWB for multiple Airlines. With some support from IATA and airlines in Europe and North America providing API access to eAWB360 platform and airline systems respectively, we could get Europe and North Americas get back on track of the digitisation route.” The boom in e-commerce means the industry must embrace digitisation as customers demand real time track & trace, service reliability and on time delivery.

Darbha says: “Stakeholders should be open and accommodate real time data sharing between IT systems and API access. We must move away from using legacy, message based updating data between airline, handling, forwarding systems to real time on demand data updates using API. Underlying IT systems must be geared to support IATA StB [Simplifying the Business] initiative.” E-commerce will not go away, and Darbha says this makes even more essential that the industry embraces e-freight and digital cargo. He says: “With the likes of Amazons and Alibabas posing a threat to the incumbents, our industry realises the need to embrace the digitisation to stay in business. I expect a gradual in shift in focus from e-freight to digital cargo which has wider scope and is based on today’s technologies.”

Nexiot enters the world of blockchain

NEXIOT has launched integration with a blockchain type distributed ledger as part of its digital logistics platform. Its self-sustaining sensors send messages every five minutes from assets such as rail wagons, shipping containers, and boxes, including updates on location, impact events, border crossing and mileage. Enhanced with blockchain technology, the data, securely held in the new digital ledger, include a date and time stamp, making the information legally binding and adding a valuable layer of accountability to the journey of an asset and its goods. Nexiot director of marketing and sales,

ACW 12 MARCH 2018

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Daniel MacGregor says blockchain technology opens the door to the introduction of smart digital contracts. He says: “The distributed ledger brings transparency, trust, and legal compliance to our Management Solution, as the data records are legally binding.” MacGregor also says Nexiot’s sensors have established a new level of accuracy for contract stipulations of location and location-based events. Nexiot says the ledger can also automate payment fulfilment, proof of service delivery and proof of third party service quality.

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