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The weekly newspaper for air cargo professionals No. 1000

24 September 2018

Still standing after all this time

Volga-Dnepr says goodbye to brokers

as BACA urges re-think

he recently announced move by Volga-Dnepr that it will only deal with clients directly, cutting out the broker, is “flawed” and will only lead to increased administration and business loss to the operator. That is the claim of BACA - The Air Charter Association, which represents many of the affected brokers. The Russian carrier said in a statement to Air Cargo Week: “As Volga-Dnepr Airlines continues to develop its business and reinforce its direct sales efforts globally, it has decided to discontinue doing business with brokers. “This decision applies only to the charter operations of Volga-Dnepr Airlines performed onboard AN-124-100 and IL-76TD-90VD airplanes, which represent the biggest fleet of these aircraft types, and the airline is aiming to increase the availability

of its fleet for the benefit of its customers.” However, BACA chairman Richard Mumford, says: “I would not like to speculate on the reasoning [behind this move], but typically these decisions are born out of a belief that by saving the modest margin that brokers make in a transaction the operator will somehow improve its own profitability. “We believe that this logic is flawed and simply increases the administrative burden, and the risk of inefficiency or loss of business, for the operator. “Clearly, it is the commercial right of any operator to choose with whom and how it wishes to conduct its business. As chairman of a brokers’ association, I am clear that it is the role of the broker to both perform a valuable role in charter transactions and to convince the customer and operator that they are doing so. We firmly believe that our members provide services using expertise and experience

that makes them a vital member of the air charter transaction chain. “As with many areas of business, from the outside, charter transactions can seem relatively simple. However, in reality there are a whole range of factors, requirements and nuances that can harm the customer experience or cause customers and operators to lose opportunities altogether. This can be particularly so in a specialist area of the market, such as abnormal cargo operations.” He is clear on the role of the broker and how its move may rebound on the carrier. “We believe that good brokers perform an invaluable role in air charter transactions. Carrying complex cargos across borders is not a simple task, and many customers who wish to fly valuable or sensitive goods very much rely upon and enjoy the specialist support and expertise that their chosen broker provides to them. In turn, that broker’s interaction with an operator helps both the customer and the operator to ensure a safe, efficient and positive flying experience for that cargo. “For the customer, the decision as to which operator or aircraft is the most ideal match for each cargo movement is not binary. Ultimately, we believe that any perception of improved profit by cutting out the broker will be exceeded by the loss of efficiency and loss of range of custom that the operator will experience. Our members will work on behalf of their members to seek a reversal of this decision so that all can work symbiotically to the greater good of the market.” According to Mumford, throughout its nearly 70 year history, BACA has seen cycles in which certain operators cut broker relationships, only to re-open them “once the shortcomings of doing so” have manifested themselves. “On behalf of our members, we would urge Volga-Dnepr to re-think this course of action and instead to work openly with brokers to ensure that the valuable services our brokers provide are efficiently meshed with Volga Dnepr’s cargo operations. In that way, all involved can best represent the interests of the market customers,” he says. The airline added in its statement that it “will fulfill and accomplish all unfinished projects and commitments with its broker partners accordingly. Volga-Dnepr Airlines will continue to work closely with its freight forwarding customers to support their global air charter requirements.”

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INSIDE leach in tiaca hall of fame

Air Charter Service founder and chairman, Chris Leach has been inducted into TIACA’s Hall of Fame, which celebrates people who have made a difference ... page 2

lufthansa handles e-dgd

lufthansa Cargo has handled the first dangerous goods shipment with an electronic Dangerous Goods Declaration at Frankfurt Airport ... page 4 foundations for success

the ground-breaking took place some 60 days ago of ULD solutions provider ACL Airshop’s new $7.2m air cargo products factory in Greenville ... page 13

positive growth in asia

for Air Logistics Group, South East Asia remains a good place to do business. The GSSA has been enjoying bullish growth in the region ... page 14

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Leach inducted into TIACA Hall of Fame

ir Charter Service founder and chairman, Chris Leach has been inducted into TIACA’s Hall of Fame, which celebrates people who have made a difference to air cargo. Leach has worked in air cargo for over 40 years, starting his career with Saturn Airways where he was involved with charter flights. He then worked for Transamerica Airlines where he coordinated aircraft in the 1980s during the great famine in Sudan, transporting personnel and aid. Air Charter Service was founded in 1990 in the basement of his home in Kingston, and soon landed a number of key contracts including a deal with the United Nations following Somalia’s civil war transporting life-saving relief. The company has moved from his basement to 22 offices worldwide, providing aircraft for almost 15,000 charters annually. Much of the work involves transporting aid to disaster areas, including victims of the 2004 Indian Ocean tsunami, the 2005 earthquake in Pakistan and the 2010 earthquake in Haiti. Leach says: “I’d like to thank the entire ACS family, which is now almost 500 people, for their hard work and belief in what we do. And I’d like to thank you, my peers and TIACA, very much for this recognition – I’ve just been doing my day job.”

Leach TIACA secretary general, Vladimir Zubkov says: “I can think of no one more deserving of this accolade than Chris, who started Air Charter Service from humble beginnings almost 30 years ago, only to watch it develop into the impressive multinational company it is today.” Leach will be formally inducted into the Hall of Fame in a gala ceremony at the 2018 TIACA Air Cargo Forum, which takes place from 16 – 18 October in Toronto, Canada.

Hong Kong bounces back from Mangkhut

Hong Kong has bounced back quickly after Mangkhut slammed into the territory on 16 September, closing down the airport and stopping all plane and cargo movements. “We are back to normal. We don’t have any disruption now,” an official with Hong Kong International airport told Air Cargo Week on Thursday morning. Mangkhut lashed Hong Kong with torrential

rains and winds of over 100 miles per hour, a combination that brought the normally hyper-bustling city to a halt. As a major commerce centre, the city is also a key air cargo hub but is now back to speed. Mangkhut, which was a Typhoon 10, the highest and most severe type of typhoon, saw the airport closed and over 1,000 flights cancelled. The Airport Authority (AA) remedied this by having the facility’s two runways operate overnight on Monday and Tuesday to clear the backlog. Support for this came from an industry source who reported a meeting on Wednesday between the airport and the airline had reported “no other issues” in the aftermath of the Mangkhut. “No major disruption was reported at the meeting ….. the situation is normal,” said the official who asked not to be named.

ACW REWIND 500

In our last visit to the 500th edition of Air Cargo Week, we see that Boeing had put back expected delivery of its B747-8F following industrial action that had delayed construction for up to two years.

Boeing confirms B747-8F delay Vol 11, Issue 47 24 November 2008 aircraft manufacturer Boeing has adjusted the delivery timeframe for the delivery of its new-generation 120-tonne capacity B747-8 freighter. Initial deliveries of the B747-8 freighter are now expected to move from late 2009 to the third quarter of 2010, while the first passenger variants of the aircraft will not be delivered

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until the second quarter of 2011. Boeing said the business will offer a “poststrike” assessment of schedules for all its commercial aircraft programmes in the near future. Another very unwelcome knock-on effect for the aircraft manufacturer is the fact that its B777 freighter programme is suffering from the same effects of the industrial malaise at the compnay.

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Lufthansa handles first eDGD

ufthansa Cargo has handled the first dangerous goods shipment with an electronic Dangerous Goods Declaration (eDGD) at Frankfurt Airport using the INFr8 platform. The German airline made a significant contribution to the establishment of the global eDGD standard as part of IATA’s e-freight initiative. A completely new approach was developed and evaluated through close collaboration along the transport chain with the INFr8 platform, with Lufthansa Cargo’s IT systems and processes being able to deal with paperless dangerous goods shipments. The first shipment was from healthcare company Abbott Diagnostics based in Wiesbaden, and was flown on board flight LH8222 to Mexico City on Thursday 13 September. Lufthansa Cargo board member for operations and COO, Sören Stark says: “We are pleased that the eDGD has celebrated its global launch with Lufthansa Cargo. This underscores our claim to be the industry pioneer in digitisation. There is still so much more for us to

ACW 24 september 2018

achieve here together with shippers, forwarders and airports.” The pilot phase of the INFr8 shipping portal has been successfully launched, with all pilot partners being digitally connected to the platform and using it to process transport documents including the Dangerous Goods Declaration. Dakosy chief executive officer, Ulrich Wrage says: “Our shipping portal solves a major challenge in the air cargo supply chain, ensuring greater reliability and transparency for all. We are greatly simplifying processes across company boundaries.” Panalpina was also a key process partner to Dakosy, and Frankfurt Airport plays a major role in dangerous goods handling for both companies. Fraport executive director operations, Anke Giesen welcomed the launch of the shipping portal, saying: “Thanks to this worldwide innovation, the INFr8 platform integrates the shipper into the electronic information chain of the air cargo process for the first time. We expect this to result in shorter check-in times and much faster handling of dangerous goods.” Electronic documentation will allow errors in accompanying documentation to be detected and resolved before the airline receives the shipment. This will mean fewer rejected shipments, faster processes and better use of resources. The pilot phase of the INFr8 platform, available at www.infr8.de is expected to last six months, after this it will become a standard tool available to all market participants interested in using it.

time:matters acquires customs broker

time:matters has fully acquired CB Customs Broker and Customs Broker Cargo Handling, providing opportunities and extensive customs clearance and handling expertise. Both companies will continue to act as neutral partners and offer their existing services including customs clearance and cargo handling to forwarders, integrators and courier companies. Founder and managing director, Stelios Ntounakis will remain in his roles and manage the businesses together with time:matters. Ntounakis says: “CB Customs Broker and Customs Broker Cargo Handling will continue to go from strength to strength under the time:matters umbrella. As managing director of the Customs Broker companies, I will work closely with time:matters. This will ensure the continuity of the business model and maintenance of existing customer relationships into the future as well.” time:matters managing director, Alexander

Kohnen says: “This acquisition represents a continuation of our growth strategy and means we can incorporate decades of customs clearance and cargo handling expertise into time:matters services. We will be able to respond even more flexibly to customer requests, reinforcing our claim to be the premium provider of special speed logistics.”

SpiceJet to fly freighters to Kabul

SpiceJet will operate cargo flights between Delhi and Kabul having signed a memorandum of understanding (MoU) with the Afghanistan Chamber of Commerce and Industries (ACCI). The cargo services, operating under the SpiceXpress brand will transport fresh fruits and dry fruits, carpets and other commodities from Kabul to different states of India, subsidised by the Afghan government. SpiceJet will transport the commodities from

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Kabul using its freighter aircraft to Indian metro cities and throughout India on its passenger network when operations start on 15 October, with the airline saying it plans to transport up to 1,500 tons of cargo a month under the MoU. The MoU was signed by SpiceJet chief project officer, Manjiv Singh; ACCI chief executive director, Atiqullah Nusrat; and senior advisor of the president of Afghanistan in banking and financial affairs, Ajmal Ahmady.

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Swissport ready for UK growth

EGRO has let a 36,000 square foot facility to Swissport UK, allowing the cargo handler increase its business at Heathrow Airport. The aviation services company, which provides airport ground and cargo handling services, has signed a 10-year lease at Unit 1 SEGRO Park Portal Heathrow, a Grade A modern warehouse facility that also includes office space. SEGRO Park Portal Heathrow is in a prime position with direct access to the Southern Perimeter Road and close to SEGRO’s cargo terminal. The Portal is well connected with Junction 14 of the M25 within three miles to the west giving swift access to the UK’s motorway network. SEGRO business unit director for Greater London, Alan Holland says: “We are pleased to provide additional space for one of our

long-standing customers that will enable them to effectively grow their business in a highly competitive industry. “Levels of cargo at Heathrow will continue to increase in the near-term future, and following the parliamentary vote for an additional runway, freight capacity is expected to double, so it’s vital for our customers to have the space to respond to current and future demand.”

Silk Way increases Zhengzhou services

Silk Way West Airlines is increasing services to China by increasing services to Zhengzhou from four flights a week to six. The carrier made the announcement during the 2nd ICAO Cargo Conference held in Zhengzhou from 5 – 7 September. The Baku, Azerbaijan-based airline says following meetings with senior representatives of the Henan Government, it was agreed to further enhance strategic cooperation and increase frequencies between Zhengzhou and Baku. Silk Way West president and chief executive officer, Wolfgang Meier says: “With this we are entering into the new stage of our strategic cooperation with The Government of Henan Province and Zhengzhou Airport. We are excited to further strengthen this cooperation by seeing further growth.” He adds: “Within a short period of time we manage to emerge as the one of the leading

cargo carriers in Zhengzhou and we are aiming to further increase tonnage and flights as Zhengzhou provides for us the perfect platform to grow in view of our core capabilities to serve the Silk Air Route in accordance to the One Belt – One Road strategy The Chinese Government is strategically pursuing.”

Novo takes equity stake in Envirotainer Novo Holdings has agreed to acquire a 24.9 per cent of the equity in Envirotainer in partnership with the private equity firm Cinven. The Danish life science investor says Envirotainer was an attractive investment due to its innovative product offering; consistent service delivery and global delivery capability; attractive market due to the rise in biopharma sales; and global growth opportunities with Cinven and Novo supporting development in technology. Envirotainer chief executive officer, Michael Berg says: “We are pleased to welcome Novo Holdings as a partner alongside Cinven in Envirotainer, where we see great value from Novo

Holdings healthcare expertise and pharmaceutical market knowledge to further develop the customer service offering of Envirotainer.” Novo Holdings senior director, Samir Kamal says: “Envirotainer is a very attractive investment opportunity for Novo Holdings. The company is a leading player and is in an excellent position to further benefit from the increasingly important demand for temperature controlled biopharma logistics. “We are excited about this investment and look forward to, together with the management team and Cinven, be part of further developing Envirotainer.”

Barrington-Spencer joins Cargo Composites Adam Barrington-Spencer has joined ULD manufacturer Cargo Composites as vice president of sales and marketing. He will be responsible for the leadership of the after-sales support team, creating customised ULD solutions, communications and marketing. Barrington-Spencer has over 15 years of international aviation and sales experience having held key roles at Unilode and DHL. Cargo Composites president, Tom Pherson

says: “Adam is highly regarded in the industry and played a key part of Unilode’s rapid growth over the past 10 years. His strong win/win partnership approach and can do attitude are key assets that will complement our ability to meet the needs of our customers.”

See our ULD feature article on pages 12 and 13

Quote of the week “We have become a very efficient ‘eco system’ type of company, a hybrid structure that is highly responsive” ACL Airshop chairman and CEO, Steve Townes

ACW 24 september 2018

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DSV awarded AEOF certificate

SV has been awarded Authorised Economic Operator Full (AEOF) certification in the UK, covering its road, air and sea, and solutions operations. To achieve AEOF status, DSV had to prove it met specific criteria derived from the Union Customs Code, including showcasing an appropriate record of compliance, demonstrating a satisfactory system of managing commercial and transport records with customs controls, demonstrating financial solvency as well as appropriate security and safety standards. UK customs and security manager, Phil Evans says: “DSV has always conducted itself in keeping with the expectations of an AEO, but now we have been through the accreditation process and made it official. The timing was right for us to formalise this standard as, increasingly, our customers were seeking the extra assurance that AEO Accreditation provides.”

Evans adds that DSV’s Brexit Action Group has been working on possible Brexit scenarios to ensure the company is ready for whatever happens after March 2019, and AEO would be an advantage. He says: “However, the AEO accreditation isn’t the end for us. There is plenty of change to come within our business, we have always looking for ways to improve what we do and what we offer, to exceed the expectations of our customers and the authorities.”

GEFCO staff get on their bikes Cyclists from GEFCO UK have raised £36,273 for BBC Children in Need after riding 300 miles from Coventry to Paris in four days. The amount is expected to increase in the coming weeks as the 47 cyclists arrive back at the GEFCO UK Coventry headquarters and continue to fundraise for BBC Children in Need, which supports projects working to make a difference to disadvantaged children and young people across the UK. They are on target to beat the fundraising goal of £50,000. BBC Children in Need commercial director, Claire Hoyle says: “BBC Children in Need are hugely grateful to each and every rider that really has gone above and beyond to make an impact on the lives of children and young people across the UK.” During the event, the team was accompanied by Jaguar Land Rover support vehicles, fitness trainers from Freestyle 360 and representatives from GEFCO UK management as

part of the overall support team. GEFCO UK director of human resources, Helen Grover says: “GEFCO UK is committed to supporting employee wellbeing, encouraging team building, and giving back to the community, and the cycling challenge ticked all the boxes.” The cyclists set off from GEFCO UK’s Coventry headquarters on 7 September, before making stops at Blenheim Palace, Oxfordshire and DJ Chris Evans’ pub, The Mulberry Inn in Chiddingfold, Surrey, and arriving at GEFCO’s Courbevoie facility in France on 10 September.

DHL opens one stop shop for customs processes DHL Global Forwarding has launched its Customs Connection platform in the US, acting as a one stop-shop for customs processes. Customs Connections features include enhanced functionalities such as a dashboard where customers can view and download their current and historical information and data, filter through commodities/origin and destination categories, generate reports, obtain invoice information and view a breakdown of total brokerage costs. DHL Global Forwarding chief executive officer, David Goldberg says: “With the changing customs landscape, DHL Global Forwarding now offers a platform that is more dynamic, robust and easy to use, allowing our US customers to obtain their data in a more accessible manner. “This platform complements the Customs Brokerage services we offer through our team of 800 experts across the US.” DHL Global Forwarding US head of Customs Brokerage, Alejandro Palacios says: “We are transitioning all of our US Customs Brokerage customers onto this new platform and have obtained very positive feedback and reviews thus far. “It is a platform that will help our customers be more efficient by giving them the opportunity to take control of all of their customs data with complete visibility and tracking.”

Healy succeeds Holt at FedEx FedEx Express has appointed Sean Healy as regional chief operating officer for Europe, taking over from Michael Holt who is retiring at the end of the month. Healy’s work will involved continued operational integration, as well as leveraging the company’s networks, people and innovation across the region. Holt will stay on until the end of September 2018 to assist with the transition. He joined FedEx Express in 1986 as a package handler while in college and rose through the ranks to become vice president of global planning and engineering. In his most recent position as senior vice president of FedEx Freight, he led the overall design, development and implementation of technology solutions and processes and taking responsibility the FedEx Freight road network. FedEx Express Europe president and chief executive officer of TNT, Bert Nappier says: “Sean has more than 30 years’ industry experience and has been at the forefront of operational innovation and service excellence for customers within the FedEx family. “His additional experience leading teams through change means he is an excellent addition to the FedEx Express Europe leadership team at an exciting time for the company.” Commenting on his new role, Healy says: “FedEx Express Europe is one of the most dynamic places to be within FedEx, not only with the TNT integration, but also as the logistics industry as a whole is undergoing transformation. I look forward to working with the European team on delivering our vision for Europe.”

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ACW 24 september 2018

1000th issue

We’re still standing after all these years A

THE story of Air Cargo Week (ACW) as the only weekly newspaper for the air cargo professional starts in the era of Trans World Airlines (TWA) and extends to the present era of Amazon Prime Air.

n the 20 years, and 999 editions, since editor Andrew J Baker oversaw the pilot issue in 1998 and Martin Roebuck steered the first issues until long-standing editor Ian Martin Jones took the helm, Air Cargo Week has “followed, mirrored and reported on the global air cargo industry in all its ups and downs.” The first 500 issues saw ACW report on world events such as the dot.com bubble, Y2K, 9/11, the Iraq and Afghanistan wars, SARS and the financial crisis of 2007/2008. On more positive notes, Jones was able to report in the 500th that ACW’s editorial team had produced a tabloid newspaper at TIACA’s Air Cargo Forum (ACF) in Washington, DC in 2000, starting a tradition that saw the team pitch up in Hong Kong in 2002, Bilbao in 2004, Calgary in 2006 and Kuala Lumpur that year. This tradition remains, with the current team flying to Canada next month to do the same at the Toronto ACF. When ACW launched, the Asian economy was on the ropes. In 2008, Jones wrote: “It is back

with a vengeance.” The decade also saw the transformation of an industry that relied on old B707s and stage two DC-8s, through stage two IL-76s to DC-8 stage three and IL-76 stage four to the arrival of Airbuses in a big way in 2004.

Second decade

The second ten years of ACW’s existence have been marked by fundamental changes both in the airfreight and publishing industries. Over this decade, the airfreight media has changed much more than in the first. Just in the UK, established titles such as International Freighting Weekly closed while rival Air Cargo News become a monthly publication. Internet sites grew to reflect the growing importance of digital news. Jones stayed at the helm for a total of 667 issues until a career change took him away from ACW. Current editor James Graham, who worked on the first issues of ACW as a journalist, says:

Pilot issue - May 1998

“We remain the only weekly newspaper published for the global air cargo industry. Digital has its place, of course, and ACW online perfectly complements the printed publication but I am convinced that a dedicated B2B title that has followed, mirrored and reported on the global air cargo industry in all its ups and downs for 20 years still has a valuable place in the industry. “Many of our stories are exclusives, created by our team of news reporters and stringer we have around the globe.” In terms of the airfreight industry, the decade has seen a slow growth back from the depths created by the 2007/2008 financial crisis. Entrepreneur Jeff Bezos and his Amazon has come to dominate the airfreight conversation like no other. With customers from Albuquerque to Zurich, Bezos has now further made his mark by serious involvement in air cargo operations through his own branded cargo assets. During this decade, pharma grew from a casual cargo, shipped in ULDs with general cargo, to a multi-billion niche traffic that ended up creating its own CEIV standard of handling. A decade which started with a financial crisis is ending with trade wars, tariffs and Brexit, all programmed to make an air cargo manager weep. Add to the mix, drones, blockchain and e-AWB, heightened security throughout the global supply chain and global economic

20th anniversary issue - July 2018

uncertainty and you have a sudden chill after the heady days of 2017, which may now look a golden year for airfreight.

Third decade

Celebrated US baseball player ‘Yogi Berra’ had a way with words. He knew the futility of making predictions. “It’s tough to make predictions, especially about the future,” he is quoted as once opining. Nevertheless, in this 1,000th issue, it is almost a duty to include what ACW thinks might happen over the next decade, our third. It is likely that Amazon and the needs of e-Commerce will drive the agenda in a way it has not so far. Pilotless cargo aircraft are likely to appear in the skies as well as drone deliveries. Many start-ups are hoping to become disruptors in freight forwarding. Chinese e-Commerce platform Alibaba may come out of its domestic silo and challenge Amazon for global sales. Graham says: “One thing that can be certain, when I sit down to plan our 30th anniversary issue with special intent and look to comment on our 1,500th edition, I am sure I will still say that Air Cargo Week consistently followed, mirrored and reported on the global air cargo industry in all its ups and downs for another decade.”

We’re all winners - ACW World Air Cargo 2018 THE stars of the global airfreight industry gathered at the Jumeirah Himalaya Hotel in Shanghai in May to honour those companies that put the customer first. Nine categories were up for the popular vote from individuals in the worldwide industry. After being verified and checked, the results remained a closely guarded secret untill the first one was revealed, Earlier a birthday cake was ceremoniously

ACW 24 september 2018

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cut by all AZura International staff attending the event to mark Air Cargo Week’s 20th anniversary. Staff came onto the stage to share with its many readers present their delight in having successfully produced the world’s only weekly airfreight newspaper for two decades. ACW editor James Graham says: “These awards are truly coveted by the global airfreight industry professsional as a mark of excellence they can be proud to win.”

1000th issue The ACW A-List of airfreight’s most influential

5 Aleksey Matyushev The CEO of Natilus , the work he and his team are undertaking could well steer much of airfreight in the coming decades.

10 Ram Menen For years he was simply the powerhouse of Emirates Cargo. He took the carrier from the belly of EQ’s early A310s to a top league global air cargo player. His interest in airfreight continues with drones and current work as an airfreight influencer means retirement is off the agenda.

6 HACTL This ground handler has been described as the most innovative handling agent in the world for 40+ years. HACTL is set to influence air cargo in China and the wider region for many years.

11 Sebastiaan Scholte As TIACA chairman, Scholte is steering the association through the arrival of AI and blockchain while navigating the changes being brought by Amazon.

7 Jack Ma As yet, Ma’s creation Alibaba remains centred on China but if, or when, it is unleashed on the world, it may be bigger than Amazon. There is already talk of him setting up an airline if that should happen.

12 IATA The influence of the International Air Transport Association (IATA) for airfreight comes for its work for all aviation at the global and regional levels. 13 Stan Wraight Stan has been engaged in the air cargo industry for over four decades yet he and three partners created an internationally accredited workshop for the next generation of managers in the air cargo industry.

4 Natilus In developing the next-generation large freighter for the air cargo industry, a fully autonomous commercial UAS with versions ranging from 3.5ton payload to 130 tons., for some, this is the future of airfreight delivery.

1 Jeff Bezos The most influential man in airfreight. The test? Try thinking of the future of airfreight without mentioning Amazon. His multi-billion dollar business, with its own branded airfreight operation, is going to drive airfreight well into the coming decades. 2 Donald J Trump His trade wars and tariff-setting can only hurt airfreight globally. 3 Fred Smith FedEx founder and still the ultimate disruptor, Smith’s company is now old-school airfreight but that does not mean the influence of man still at its helm is going away. Retirement does not seem an option for this man.

8 Schiphol Cargo The airport cargo operation has been nominated for its Smart Cargo Mainport Program. 9 TIACA Its mission to represent, support, inform and connect every element of the global air freight supply chain, gives it major influence in the industry and corridors of power.

14 Nick Platts The current head of cargo at Heathrow wields great opportunities to influence – not only from his championing of paperless transactions in airfreight but from being at the helm as Britain leaves the EU.

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15 Martin Kraemer With the Jettainer Think-A-Thon at tlChina he initiated a project that reaches far beyond the interest of his own company but which is seriously beneficial to the entire industry.

16 Gerry Burgin Burgin who has provided leadership in the forwarding and the overall air cargo since 1960 and still is going very strong in the fields of e-AWB and airfreight consultancy. 17 Stephen Dawkins Dawkins has lead changes in the GSA sector through Air Logistics Group for nearly 25 years through work on total cargo management solutions, compliance programmes and data capture services. 18 Steve Townes The implementation of Bluetooth tracking technology in ULDs, an industry-first, is among other innovations under Townes’ leadership of ACXL Airshop. 19 Adrien Thominet A man described as being “born in the freight industry” he has steered Paris-based ECS to a global dominance in the GSA sector. 20 Neil Hansford The architect of TNT Airways, the person who specified the Bae 146 QT freighter as its workhorse.

ACW 24 september 2018

temperature sensitive

Cargo you must handle with care It can take just a few degrees movement to spoil a cargo. Temperature sensitive cargo requires careful consideration throughout the supply chain.

Softbox recycles packaging

oftbox, an innovator and provider of temperature control packaging for the life science and logistics industries, has launched a new Green Recycling Service across the United States and Canada to provide its customers with a “hassle-free way to dispose of their temperature control packaging waste and improve

their eco-sustainability performance,” says the company. The new Green Recycling Service for BioPharma, provided by Softbox, is an eco-friendly way of dealing with packaging waste, such as used pallets, EPS foam and corrugated components. Instead of disposing of these pharmaceutical packaging components along with the rest of their scrap destined for landfill, companies can now have these components recycled into materials that will be used to manufacture new products for other industries. The collection of the packaging waste and delivery to the recycling centre is a one-phonecall, one-fee service that is fully-managed by Softbox and delivered in partnership with a national partner which is a specialist in the manufacturing and recycling of packaging materials.

“Softbox is highly committed to supporting its customers and providing cold chain packaging solutions that reduce waste and their impact on the environment,” says Softbox general manager of US and Canada, John Hammes. “Our new Green Recycling Service allows us to go even further – by ensuring a sustainable alternative for ‘end of life’ temperature control packaging waste. Our US and Canadian customers can now significantly reduce their landfill impact and potentially reduce the cost they are paying today for non-sustainable waste. This

program will not only benefit Softbox’s green priorities, it will also help our BioPharma customers achieve their own sustainability objectives, reporting, and scores. “With our exciting partnership now in place and serving several of our clients, our customers just need to make one phone call to Softbox, and we will arrange the collection and recycling of all their temperature control packaging waste – taking the time and effort out of their green initiative for just one cost-effective all-inclusive fee.”

Agility has received Wholesaler Distribution Authorisation (for Medicines for Human Use) from the UK Medicines Healthcare & Regulatory Agency (MHRA). The WDA(H) certification authorises warehousing and cross-dock of a wide range of pharmaceuticals, including finished products and active pharmaceutical agreements under ambient and cold chain conditions. The certification covers the Agility-managed pharma storage facility at London’s Heathrow Airport and a second pharma competence centre in Bristol. The WDA(H) allows Agility to provide a

number of additional services, including pickand-pack operations for the distribution of stored products to hospitals, pharmacies and other distributors, the re-packing into active and passive shipping configurations, and the distribution of clinical trial materials. Agility managing director area North West, Colm McAlinden says: “With this new certification, we are able to expand our Life Science service offerings in the UK and operate on behalf of our customers, particularly virtual wholesalers, brokers and importers. The certification also provides Agility with flexibility for post-Brexit import and export regulations.”

Wholesale medical certificate for Agility

ACW 24 september 2018

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temperature sensitive

SkyCell cuts CO2 emissions SkyCell containers halve the CO2 emissions per air cargo shipment, according to a study by climate protection organisation myclimate. In a life-cycle analysis, SkyCell 2500 and 1500 containers were compared with commonly used competitor products, analysing the CO2 footprint on typical cold chain routes as well as the emissions caused from manufacturing until decommissioning of the containers. myclimate leader of resource efficiency, Dr Bettina Kahlert says: “It can be stated that the big SkyCell 2500 container with a high interior transport volume performs best when looking at the entire life-cycle of the product and shipment, followed by the smaller SkyCell 1500.” The objective of the “Comparative Carbon Footprint Study” was to compare SkyCell containers for the transport of pharmaceutical products in the temperature range 2-8C with conventional passive solutions. All processes from manufacturing, preconditioning, to transport and end-of-life were analysed from cradle-to-grave in order to evaluate the CO2

footprint. SkyCell CTO, Nico Ross (pictured right) says: “We initiated the study, because it has been our goal right from the start to develop and run the most efficient and safest pharma container system worldwide. We wanted to verify this from an independent and trustworthy source like myclimate.” Experts not only analysed the fuel consumption on typical routes but also the complete life-cycle of transport containers using the ecoinvent database, allowing for the calculation of the environmental impact. SkyCell CEO, Richard Ettl (pictured left) says: “It makes us proud that our work to develop the containers has paid off. It is our mission to provide the most reliable and environment-friendly transport solutions for temperature-sensitive shipments and the study by myclimate shows that we have achieved this. “We will keep improving our technology and services in order to eliminate product loss due to temperature excursions and to better protect our climate.”

Fresh foot forward Etihad Cargo has launched FreshForward, a specialist product for the cool chain industry to move goods such as fresh fruits, vegetables, dairy, fish, meat and flowers across its network. The airline transported over 90,000 tonnes of perishables over its network in the last 12 months. Fruit and vegetables made up more than 37 per cent of the total, and it also carried 15,000 tonnes of meat, 19,000 tonnes of flowers and 8,000 tonnes of fish. At the Abu Dhabi hub, Etihad will prioritise the transfer of perishable cargo from the aircraft into a dedicated centre, and subsequently onto reefer trucks to be delivered directly to the customer. Etihad Airways managing director for cargo

and logistics, Abdulla Mohamed Shadid says: “Etihad Cargo plays a vital role in stimulating the UAE’s imports and exports via our Abu Dhabi hub, and today we are delighted to introduce yet another product that will act as a further catalyst to this. Safe, efficient and timely transport is critical for the UAE’s major importers of fresh produce including supermarket chains, F&B wholesalers, restaurants and florists.” Customers will continue to benefit from track and trace services, adaptive temperature control on freighter and passenger aircraft, cold chain storage at the hub, dry-ice packing, thermal blankets and cool dollies amongst other elements.

Peli opens in Indianapolis

eli BioThermal has opened a network station and service centre in Indianapolis to service, refurbish, repair and condition its Credo on Demand shippers. The network station and service centre is located near to Indianapolis International Airport, a major logistics hub for carriers including FedEx, United Cargo and Cargolux. The Indianapolis Metropolitan area is home to large pharmaceutical companies including the Eli Lilly Global Headquarters and Roche Diagnostics North America headquarters. The city is host to major offices for Siemens, Baxter, Cook Pharmica, Covance Laboratories, BioStorage Technologies, Sentry BioPharma

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Services and Evonik, making it a prime location for Peli BioThermal to offer services. Credo on Demand vice president, Dominic Hyde says: “This new network station and service centre represents an investment in Indiana’s growing pharmaceutical and biomedical industry and is an indication of our industries growth overall. Our aim with this location is to increase convenience and flexibility for our customers to select the best locations for their business.” The 50,000 square foot facility in the Plainfield Gateway Business Park will be one of the largest locations in the Credo on Demand network, and Peli BioThermal is hiring an entire team of experts to staff the facility.

ACW 24 september 2018

ulds

Keeping cargo packed in the hold The Unit Load Device is a piece of airfreight hardware so ubiquitous that few notice them. Without them, however, modern airfreight would be at a standstill.

witzerland-based Unilode owns and manages approximately 130,000 ULDs for more than 40 airline customers across a global network of 480 airports and 50 repair centres. It offers asset management and repair services for ULDs and ground support equipment. According to Unilode CEO Benoît Dumont, the company enjoys good relationships with ULD manufacturers. He says: “Unilode owns the largest ULD fleet in the industry and has excellent relationship with the main OEMS. In addition to being the biggest ULD buyer, Unilode owns and operates the world’s largest ULD repair network with more than 450,000 ULD work orders completed each year. This enables Unilode to provide manufacturers with valuable data and reports that help them work on any weak points identified in their ULDs for their further analysis and improvement of the Total Cost of Ownership (TCO) of these assets.” The company was rebranded from CHEP to Unilode in February 2017, following the change in the company’s ownership. Dumont says: “The rebranding went smoothly, the reaction both from the industry and our people was very positive, and the brand image is strong. Unilode’s

key values of being a personable, reliable, expert and innovative company have not changed and continue to guide us in building long-term, mutually beneficial relationships with our customers and partners.” A ULD management agreement is always an exclusive relationship due to the nature of the business as the airline’s ULDs are sold to the

ULD management company and then managed in its network. When new equipment needs to be purchased, either because of the aircraft fleet growth of the airline or to replace old units, Unilode buys the containers and pallets from the manufacturers, meaning the airline does not need to buy equipment. Unilode won the inaugural IATA Air Cargo Innovation Award with its ULD track and trace solution called CanTrack in 2015, which became a catalyst for the development of digital ULDs in the industry. Dumont says: “Since then, Unilode has heavily invested in its digital transformation project which will further strengthen Unilode’s value proposition. More than 40 airlines have already contacted Unilode to obtain more information on the digital ULD project, which we believe, is the best solution offered to the market. Safety is a key consideration and Unilode’s solution is fully compliant with all regulatory requirements in addition to being certified by OEMs and aviation authorities.

CanTrack launch

ACW 24 september 2018

“Unilode works in collaboration with OnAsset, the industry leader in real-time asset tracking, and a leading IoT company, for the development of the digital ULD solution, which is based on the 5.0 version of BLE (Bluetooth Low Energy) technology, leverages mobile devices which can act as a reader, and with the help of an app makes the ULD track & trace features immediately operational. Unilode has partnered with Zodiac Aerospace to design the form factor for the pallets which has resulted in the tag being fully integrated into the corner piece, which is much better than a bolt-on device.” A number of field trials have been conducted with Unilode’s airline customers including Cathay Pacific and Air Canada, where the solution was tested in operational environments on the ground and in flight. Unilode’s aim is to equip its entire ULD fleet with the digital track and trace tags that will be a game changer in the industry.” Dumont describes Cathay Pacific as “a modern, innovative and forward-looking airline” and it is Unilode’s largest ULD management customer. “Our partnership enables both parties to

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actively collaborate in innovation projects, including Unilode’s next generation ULD track and trace solution, which included our recently concluded successful field trial at the Cathay Pacific Cargo Terminal in Hong Kong. The next phase, where actual shipments are being tracked with Unilode’s new BLE5 tags, is currently underway.” he says. Unilode works with its airline customers to conduct field tests, which enable Unilode to test the solution, gather feedback from the users and make improvements as needed. Unilode’s digital solution will be offered to all its airline customers, regardless of their participation in field trials.

Rebranding exercise

Unilode’s ULD management agreements contain exit clauses and a customer can terminate the relationship even before the contract ends. Unilode is very proud of its loyal customer base. The company has very long partnerships with several airlines with ULD management agreements renewed multiple times. Just to name a few examples, AirBridgeCargo has been partnering with Unilode since its operations started in 2004, and Cargolux and AirAsia X signed their respective ULD management agreements with Unilode in 2009. Unilode has efficiently supported these airlines’ growth over the years with ULD management solutions for the mutual benefit of both parties. Dumont says: “The change of ULD decals is a long process as this is carried out when the container is taken out of service for repair. The majority of Unilode’s existing ULDs have already been rebranded and new containers are delivered with our sharp new logo. GHAs are well aware that both CHEP and Unilode branded ULDs belong to Unilode and the visual difference in the ULD branding does not cause any operational issues.” When Unilode signs a ULD management agreement with an airline that already has a ULD fleet, the serviceable containers and pallets of the airline will be rebranded and integrated into Unilode’s ULD fleet which is identified with IATA code R7. The unserviceable ULDs are scrapped within Unilode’s repair network. Serviceable excess units, if any, are re-utilised elsewhere in Unilode’s ever-expanding network.

ulds

Digging the foundations for success

he ground-breaking took place some 60 days ago of ULD solutions provider ACL Airshop’s new $7.2 million air cargo products factory in Greenville, South Carolina. The facility is set to create approximately 32 new jobs. ACL Airshop is a subsidiary of Ranger Aerospace and has become a worldwide provider of fleet control, leasing, sales and repair services for ULDs. The company also manufactures cargo control products, operating on six continents and serving nearly all of the world’s top 50 air cargo hub airports. In the coming years, ACL Airshop plans to expand to serve a majority of the world’s top 100 airports. Located in Park West Commerce Park, the 60,000 square foot facility, due to come on-stream in April next year with a formal opening later in May, will feature high bay manufacturing spaces for air cargo nets, transportation straps and other products. Amenities for employees will include indoor and outdoor gathering spaces and a future workout centre for fitness and health. The South Carolina Coordinating Council for Economic Development has approved a $100,000 Set Aside grant to assist with the costs of site work and infrastructure improvements. “The new factory will give ACL Airshop more capacity, faster throughput, modernised machinery, consistent quality, with LEAN design throughout. I view it as a fundamental leap forward for this important division of the company,” says ACL Airshop chairman and CEO Steve Townes.

Top 100 airports

ACL Airshop is “simultaneously expanding and improving numerous other operating sites,” notes Townes. ACL Airshop now has operations at 50 of the world’s top 100 cargo airports. “We have new facilities at LAX, JFK, NRT, BOG, LGG, and enhanced facilities at AMS and HKG

Townes

plus the new factory at GSP. Our three large gateway locations are AMS, JFK, and HKG, which are being invested as sophisticated ULD Fleet Ops Centres, integrated with our own ULD Control logistics programs, and our new Bluetooth innovations for customers. “Those three major cargo hubs are the anchors for our worldwide leasing and services network. We have become a very efficient ‘ecosystem’ type of company, a hybrid structure that is highly responsive -- and fast -- for airlines customer requirements,” says Townes. The strategic Importance of Asia is clear for ACL Airshop. Townes says: “Our fastest growing region in the world is Asia-Pacific. That tracks and mirrors the measurable growth of the air cargo aircraft fleet in that region and the growth of air cargo tonnage in that theatre. We have doubled our global geographic footprint in the past 30 months. “Although we are aggressively growing each region of ACL Airshop, with numerous facility enhancements and staff additions, and of course our huge annual spend on our own ULD fleet, it is Asia-Pacific where we have placed our largest and fastest bets. Five years ago we had one station there (Hong Kong); now we have 14 and still growing. On six continents, our customers said grow the network and indeed we are.”

Industry 4.0

One modern business term that excites Townes is Industry 4.0 and its relevance to what ACL Airshop do. He explains: “The first industrial revolution was in the 1700-1800s with the growth of factories. The second was the advent of mass production, starting in automobiles in the 1920s-30s. The third big wave was in the 1960s with computers, with rapid acceleration ever since. ‘Industry 4.0’ is considered to be the rise of smart systems, the Internet of Things, which includes the rapid rise of robotics, smart manufacturing machines, and instantaneous Big Data merging so many industry sectors into giant high-speed interconnected ecosystems. “Our Bluetooth innovations for ULD track and trace offer airlines the technology needed to know the location and status of every ULD. And with the Bluetooth tag tied to the serial number of the pallet or container, and hence the Airway Bill, it yields a whole new level of logistics efficiencies for the end-user shippers. “This is a first-to-market innovation in which we are partnered with CORE Transport Technologies of New Zealand. CORE’s patented Bluetooth application for ULD fleets is proven in the field, and rolling out steadily among multiple airlines, including one of the world’s top ten,” says Townes.

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ACW 24 september 2018

South east asia

Positive growth throughout the region

Driven by passenger growth and the expansion of routes in Asia, the market in South East Asia will continue to mature and professionalise creating more opportunities.

or Air Logistics Group (ALG), South East Asia remains a good place to do business. The GSSA has been enjoying bullish group in the region, explains ALG CEO Stephen Dawkins. He says: “Our performance in South East Asia so far in 2018 has continued to show consistent year-onyear improvements against 2017 which was an exceptional year. We think that trend will continue for the mid-term.” The UK-based operation keeps a weather eye on global events and personalities that may affect airfreight in the region. Dawkins says: “There seems to be dark clouds on the horizon with the US-China trade war so we will continue to monitor the market closely. The numbers indicate a slowdown in the summer which may just be seasonal, so we will monitor closely how the trends look. We draw comfort from the fact that retail and pur-

chase trends in South East Asia still seem positive.” ALG believes that capacity growth will continue to outpace demand even though there is a new wave of global expansion taking place. This is mainly driven by exponential passenger growth. Dawkins says: “We expect to see a continued expansion of the requirements from airline partners to provide additional services be it fiscal, sales, or operational from professional GSSA companies. Air Logistics’ innovative approach allows its airline partners to take advantage of a variety of solutions, from turn-key Total Cargo Management to local sales in niche markets.”

Dawkins According to Dawkins, Air Logistics Group has moved with the times and has invested significantly in IT and back office functions, and will continue to do so as the demand from airline partners is to have revenues and yields as quickly after flight departure as possible. As e-commerce continues to boom, airlines and their suppliers will need to continue to evolve to deliver on the demands of the large e-commerce companies that bring huge influence into the airline cargo industry. The airlines that have invested into e-commerce will be the ones that are the market leaders for the next 10 years. The market challenges will continue to drive a data-focused professional approach to the business and bring more transparency in these markets. “There are numerous challenges for airlines and GSSAs as their partners – but these are also opportunities. How can we optimise their networks, how can we manage cargo demand on passenger routes, and how can we innovate to digitise the business. These are all opportunities to be seized upon and we are investing in these innovations,” Dawkins says. “Adding value is key; through IT development, business intelligence, compliance and employee advancement via training and targets. These are Air Logistics Group’s core pillars, ensuring our teams are able to deliver and meet our principal’s demands today and in the future.”

CEVA works with Honeywell

CEVA Logistics has been appointed to operate the first distribution centre in Asia Pacific for Honeywell Aerospace Trading (HAT). Based in Kuala Lumpur, Malaysia, the new distribution centre provides supply chain solutions for HAT’s pre-owned certified parts to end users. Conveniently located within the Bukit Jelutong Industrial Park, CEVA Logistics will operate an ambient and air-conditioned, bonded facility for both raw materials and finished goods for export and local distribution. CEVA Logistics will also be one of the suppliers responsible for HAT’s global airfreight and import management, co-packing and Customs brokerage in Malaysia. This total solution will allow HAT to have a fast access to its inventory thus enabling it to focus on its core competencies in providing quality and timely support-to-end users. “We are pleased to be appointed as the first APAC distribution centre for Honeywell Aerospace Trading. CEVA Logistics has a good track record and long-standing working relationship with Honeywell globally and regionally, providing end-to-end supply chain solutions that allow it to improve efficiency and reduce costs. This new facility will be an extra operation. In addition, Honeywell Aerospace warehousing business we have been handling since 2017, Honeywell upholds very high standards around quality and process to drive such a complex operations and the team has done well in delivering the hub to the standards,” says CEVA executive vice president Southeast Asia Elaine Low. In Southeast Asia, CEVA Logistics has a strong portfolio with Honeywell that consists of contract logistics and freight management solutions at Kuala Lumpur and Jakarta, Indonesia as well as Customs brokerage businesses in Indonesia, Malaysia and Singapore.

ACW 24 september 2018

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