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The weekly newspaper for air cargo professionals No. 1,002

8 October 2018

Margaritas with NAP in Mexico

Picture credit Understanding Animal Research

he US National Association for Biomedical Research (NABR) has filed an 18-page official complaint against four major airlines over their collective refusal to carry animals for medical research. The Washington, DC-based lobby group has started the action with the US Department of Transportation (DoT) against United Airlines, British Airways, China Southern and Qatar Airways. Over 80 US-based medical research facilities have supported the action. Lawyers for the lobbying group have stated they filed the complaint against four airlines who have “illegally discriminated and continue to illegally discriminate” against [airfreight] customers who seek to transport animals for purposes of live animal research undertaken at medical and other research facilities. In an attempt to appeal to its supporters, the NABR says on its website: “The importation of non-human primates (NHPs) for research into the US has become problematic. Further, the transport of several other research species around the world has also become increasingly challenging. As a result, the research community is beginning to see increased costs and uncertainty about the future of research projects. However, without access to

Airlines face lab animal embargo complaint

the appropriate models for medical research, the public stands to lose the most, as treatments for emerging public health crises may be delayed, discontinued, or moved to other countries.” “The same animals routinely are accepted for carriage by most major airlines if they are transported for non-research purposes, such as transportation for captivity (in zoos) or as personal pets,” the NABR says. “The reason for this disparate treatment is not the result of transportation-related nor safety-re-

lated factors. Rather, airlines have been the target of advocacy groups that are politically opposed to live animal research regardless of its purpose. “Based on what we believe will be found to be violations of the cited provisions, we also seek appropriate remedies, including cease and desist orders directed to each airline, civil penalties, and other appropriate enforcement remedies against each Respondent, to end and correct this continued illegal refusal to transport animals that are destined for research facilities.”

Page 10

INSIDE £8m for customs training?

the trade association for the UK freight forwarders has expressed surprise at the recent report in The Times newspaper that the UK government is ... page 4

60th dgr manual published

the 60th edition of the IATA Dangerous Good Regulations, effective 1 January 2019 incorporates all amendments made by the ICAO Dangerous ... page 9 success is critical for iag

It has been reassuring for IAG Cargo director of sales and marketing Camilo Garcia that the market has welcomed the group’s new highest priority ... page 11

Eric the rhino goes on a 10,000 mile journey looking for love WHEN Eric the rhino was moved from his home at San Diego Zoo Safari Park to the Serengeti National Park, Intradco Global was on hand to ensure the journey was as safe and comfortable as possible. Much of the journey was on board freighters operated by Qatar Airways Cargo before a trip onboard an Antonov AN-74. Eric will be playing an important role in helping save black rhinos from extinction. He will be paired with Laikipia, a female nine years his senior.

abc drives moscow growth

Picture credit Ami Vitale

Read the full story in our 15 October Animal Transportation feature article

airbridgecargo will continue to develop Moscow as a gateway, having helped increase volumes at Sheremetyevo by 20 per cent ... page 18

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IATA: Slow but stable growth in August

irfreight demand remained stable in August with 2.3 per cent growth, but it continues to be affected by trade tension and weaker exports, the International Air Transport Association (IATA) reports. The growth in freight tonne kilometres (FTK) in August is similar to July but is less than half the five-year average of 5.1 per cent. Freight capacity measured in available FTK (AFTK) grew by 4.5 per cent in August, the sixth month in a row that it outstripped demand growth though yields appear to be holding up. Growth was supported by a number of factors including buoyant consumer confidence, an upturn in the global investment cycle and growing international e-commerce. Demand was also being negatively affected by weaker export order books in Europe, China, Japan and Korea; longer supplier delivery times being reported by manufacturers in Asia and Europe; and risks to global trade from the escalation in trade tensions. IATA director general and chief executive officer, Alexandre de Juniac says that despite the consumer confidence and economic upturn, the trade tensions are concerning. He says: “The early focus of tariffs was not on products typically

De Juniac carried by air. But as the list of tariffs grows so does the air cargo industry’s vulnerability. And, we can expect souring trading relations to eventually impact business travel. There are no winners in trade wars.” By region, Asia Pacific grew by 1.6 per cent with weaker exports from China and Japan; North America was up 2.8 per cent due to strong momentum in the US economy; Europe was up 3.7 per cent despite weaker exports, particularly in Germany; the Middle East was up 2.2 per cent; Latin America grew by 1.6 per cent with strong growth in some smaller economies, while Africa contracted 7.1 per cent due to weak conditions in key markets.

Tracking trial is a success Unilode Aviation Solutions has successfully completed Bluetooth tracking trials with Cathay Pacific providing endto-end visibility for cargo shipments between Hong Kong and Melbourne. The project team consisting of Cathay Pacific, OnAsset, Nexiot and Unilode was able to deliver flawless data capture for all relevant supply chain events into the airline’s cargo management systems. The trial included the world’s first deployment of Bluetooth Low Energy version 5 technology with superior performance and range over any other Bluetooth deployment, and also featuring another world-first with data capture being conducted with a mix of fixed readers and mobile devices. The trials of ULD track and trace will continue and Unilode says it will be making further announcements on its rollout schedule for the digital enablement of its ULD fleet “in the very near future”.

Nippon Cargo returns to Europe

ippon Cargo Airlines resumed flights to Europe with services to Amsterdam and Milan starting again on 5 October. The Japanese airline suspended all services in June because of maintenance issues after inappropriate records concerning the lubricating oil supply for an aircraft at Tokyo’s Narita airport was uncovered. Services restarted on 5 July.

ACW ON THIS DAY

A-Z Group now AZura Vol 17 Issue 39

6 October 2014

THE A-Z Group, publisher of Air Cargo Week, websites and provider of many services to the world’s logistics and defence industries, has announced the change of its name to AZura International. AZura Internatinal has now acquired a controlling interest in AZura Digital, formerly Change Digital, a company specialising in the development of internet services for all branches of industry. Given its involvement with AZura Digital, AZura International is planning a variety of new projects which wil be of specific benefit to the world’s defence and logistics industries.

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£8m for customs training? That’s the first we’ve heard, BIFA says

he trade association for UK freight forwarders has expressed its surprise at the recent report in The Times newspaper that the UK Government is planning to invest £8 million in customs training and automation to support the extra demand for customs brokerage services in the event that the UK leaves the EU without a deal in March 2019. British International Freight Association (BIFA) director general Robert Keen says that in light of the significance of such news on the work undertaken by BIFA member companies, he was surprised that they have learned about it from a national newspaper, rather than through an official announcement. “BIFA has had many meetings with both HM Treasury and HMRC in which we highlighted our concerns regarding the capability of the Customs brokerage sector to increase capacity. “We have explained that the sector already faces a massive shortage of staff of suitable quality. “We have emphasised that it could take up to a year to train

Keen staff to be fully conversant to prepare a range of basic Customs declarations, even if there was a sufficient number of trainers to train those staff, as well as relevant courses for them to attend. “The impending introduction of the Customs Declaration Service will only compound the problem as the sector would be

retraining staff to move from the current system (CHIEF) to CDS, as well as potential new entrants that would be needed to process entries in the event of no trade deal being agreed by March 2019. “Assuming that the article in The Times is accurate, we now need the Government to provide us with much greater detail on the nature of this investment. How to access the funding? How long the funding will be available? What it will cover? Who qualifies?” In late August, when the UK government supplied information to businesses on trading with the EU if there is no deal, BIFA said that as most of the visible trade that takes place between the EU and the UK is managed by freight forwarders and logistics professionals on behalf of traders, some of the content of the information could be considered rather patronising as those freight forwarders are already aware of many of the issues of concern to businesses trading with the EU in the event of no deal. “To see the latest news about Government plans for Customs revealed through the columns of a national newspaper, just adds insult to injury,” Keen concluded.

GEFCO mum skydives for charity Mum-of-two and GEFCO UK human resources business partner, Eloise Ottewell has raised £1,805 for BBC Children in Need by completing a 13,000 foot skydive in Brackley, Northamptonshire. Ottewell says she was inspired to do a tandem parachute jump after supporting GEFCO UK’s Coventry to Paris cycle challenge that took place last month and has so far raised almost £40,000 for BBC Children in Need. She says: “As a mother of two young children, I was so moved by the BBC Children in Need videos screened at the GEFCO UK launch event that I immediately signed up for my first ever skydive to raise money for the amazing charity.” Ottewell adds: “It was so out of character for me to jump out of a plane at 13,000 feet, but the experience was incredible and I am proud to have successfully completed the challenge.”

The skydive is part of an ongoing charity drive by GEFCO UK to raise money for BBC Children in Need, whilst encouraging team building and engagement. The initiative is being led by GEFCO UK director of human resources, Helen Grover, who says: “I am incredibly proud of our team in Coventry and across the UK, and I look forward to continuing with our fundraising efforts.”

Volga-Dnepr rushes aid to Guam Volga-Dnepr Airlines organised a delivery of critical aid relief cargo to Guam to help victims of Typhoon Mangkhut in less than 24 hours. Within eight and a half hours of the customer’s confirmation, Volga-Dnepr had positioned one of its AN-124-100s at the airport of departure, ready to load a shipment of 64 tonnes of food supplies and bottled water. The expedited loading process was completed in just three hours, ensuring the aircraft was ready to depart to Guam as soon as the storm had passed the island. Typhoon Mangkhut, which struck Guam on 10 September is the strongest tropical cyclone recorded in 2018 to date, with winds reaching up

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to 285kmh. It has affected areas including the Mariana Islands, the Philippines, Taiwan, South China and Vietnam.

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Young freight forwarders treated to day out with Virgin

hree talented young UK freight forwarders were treated to a Familiarisation Day at Virgin Atlantic in recognition of their success at the BIFA Young Freight Forwarder of the Year award. Award winner Louis Perrin, a director of Hemisphere Freight Services was joined by fellow finalists Katie Brown, airfreight manager at TPS Global Logistics and Cargonet customer services supervisor, Irene Borghi for a day at Gatwick Airport. This began by meeting Virgin Atlantic Cargo’s managing director, Dominic Kennedy to talk about the business and exciting plans for the future. Afterwards, Louis, Katie and Irene were taken on a tour of the airline’s different departments including engineering, network planning, operations, HR, finance and training. They also visited the cabin crew training facility, the cargo warehouse operation and were taken airside to see a flight being loaded and to enjoy a cockpit visit and speak to flight crew before ending the day with a tour of the airline’s headquarters. Virgin Atlantic Cargo has sponsored the BIFA award since

From left: Katie, Louis and Irene with Ray Wood 2011, something regional sales manager UK Ray Wood says the airline is proud to do. He says: “This year we wanted to take a step further and invite the finalists to the home of Virgin Atlantic so they gain even more experience from their success. It was a pleasure to welcome Louis, Katie and Irene into our business for the day and we plan to make this a part of our annual award sponsorship.” Perrin was presented with FIATA’s Young International Freight

Forwarder Award at the FIATA Annual Congress in New Delhi. Each candidate was required to submit a 6,000 word dissertation outlining an import and export shipment from their native country. The four regional finalists were then invited to attend the event to present their dissertations in person to a panel of judges. The finalists were nominated by their national forwarding associations to take part in the competition, with Perrin being joined by Tjaka Segooa of South Africa, Kendyl Baptiste of Canada and Sarah Skrypec of Australia. Specialist insurance provider TT Club sponsored the award, and senior loss prevention executive Mike Yarwood commented: “We are delighted that the YIFFYA programme grows in popularity with a total of 17 entries this year; ranging in content from the transport of live plants, super cars and aircraft components to Antarctic ice and even a rhinoceros. Long may our future logistics leaders learn, improve their skills and enthusiastically report in their achievements.”

IAG Cargo names Hangar 51 finalists IAG Cargo has announced the finalists for this year’s Hangar 51 start-up programme, with the final three offering voice communication, analytics and video footage of ramp operations. Hangar 51 is a global innovation programme led by International Airlines Group (IAG) in collaboration with IAG Cargo, British Airways and Avios. Shortlisted start-ups presented their products and services before a judging panel at a pitch day in London, and the programme received over 400 applications from 40 countries, with the selected 28 finalists presenting their proposals for a chance to take part. The three finalists selected to work with IAG Cargo are Mobilus Labs, who offer a wearable voice communications platform enabling teams to connect from various environments; Emu Analytics offering real-time analytics and

data monetisation to help track cargo and baggage containers; and Assaia, a Swiss start-up feeding airport ramp video footage into the airlines’ networks to set up more efficient aircraft turnarounds. The finalists will embed themselves in the heart of IAG Cargo operations, working side-byside with mentors and experts in London to give them access to the necessary resources to develop, shape and test their products. The Hangar 51 acceleration programme will culminate in a Demonstration Day held in London on 14 December where candidates will showcase their achievements before an audience of senior management members and investors. This will give them the opportunity to receive investment from IAG’s digital fund to scale their business.

Emirates touches down in Edinburgh Emirates has touched down in Edinburgh for the first time, with the Boeing 777-300ER landing in the Scottish capital just before 3pm on 1 October. Flight EK023 was welcomed with a water cannon salute and a launch event hosted by Emirates divisional senior vice president commercial operations West, Hubert Frach; Emirates UK divisional vice president, Richard Jewsbury; and Edinburgh Airport chief executive, Gordon Dewar. In addition to providing improved services for business and leisure travellers, Frach says: “The new flight will also directly connect Edinburgh to new opportunities for business, trade and ed-

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ucation across our network.” Dewar says connectivity is very important for the city with the Emirates partnership providing benefits for the whole of Scotland, saying: “We’ve built our success on making Edinburgh where Scotland meets the world and today’s flight see us take a major step on that journey.”

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New airport will be the talk of the show at Logitrans

urkey is strengthening its position as the logistics hub between Europe, the Middle East and Asia with the opening of the new Istanbul airport, which will be a major talking point at logitrans 2018. The two central themes of the show, which takes place on 14 – 16 November in Halls 9 – 10 at the Istanbul Expo Center will be air cargo and digitalisation, with Turkish Cargo, Qatar Airways Cargo and Lufthansa Cargo among the air cargo exhibitors. Messe Muenchen deputy managing director, Gerhard Gerritzen says: “Interest in integrated air cargo at logitrans is growing. The trade fair thus reflects the strengthening of air cargo through the opening of the new airport in Istanbul.” Gerritzen adds: “Overall, we are again expecting around 150 exhibitors from about 20 countries.” Professor Stefan Iskan of the University of Applied Sciences in Ludwigshafen, Germany says: “Turkey’s logistics infrastructure is undergoing fundamental change. In the intermodal area alone, we are seeing a new generation of entrepreneurs, young

and dynamic.” The professor will shed further light on German and international companies entering the market through joint ventures in the topic “Intermodal Business Turkey – Priorities the Industry Now Needs to Set”.

Digital transformation demands the courage to make a new start, with Fraunhofer IML consultant, Dr Sevket Akinlar saying: “Fast, flexible, cooperative, biogenetic – these are the new challenges of digitalisation, which will affect the logistics of the future and the associated, digitally run business models.”

Acquisitions and expansion for K+N

Kuehne + Nagel has acquired Indonesian logistics company Wira Logistics, a strategic acquisition to strengthen its warehousing and distribution network. The expansion of Kuehne + Nagel’s warehousing and distribution capabilities in Indonesia where imports and exports account for close to $300 billion annually has been a strategic focus, with increased purchasing power among the country’s middle class. Kuehne + Nagel International member of the managing board responsible for contract logistics, Gianfranco Sgro says Indonesia is a very important market due to its size and digital savvy population. He says: “The tightened domestic network will further enhance our value proposition of providing fully integrated end-to-end logistics solutions to our customers across Indonesia.” Kuehne + Nagel president of South East Asia, Jens Drewes (pictured left) says the company started operations in Indonesia in 1992 and has become the logistics partner of choice for many blue-chip and local companies. He says: “These partnerships are a testament of our expertise and understanding of our customers’ needs, regardless of the size of their company. We are very excited by this acquisition and the additional opportunities that it will cre-

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ate for our business.” Wira Logistics president commissioner, Ekahadi Djaja (pictured right) adds: “Wira is very proud to expand our fruitful relationship with Kuehne + Nagel. Our existing and future customers will stand to benefit from Kuehne + Nagel’s market-leading position, capabilities and global expertise.” In addition, Kuehne + Nagel is expanding its regional network in Central Asia by opening legal entities and new offices in Baku, Azerbaijan and Almaty, Kazakhstan. It says the two emerging markets are both showing annual GDP growth rates of around four per cent, with rising demand in the oil and gas industry, consumer goods and integrated logistics projects. Kuehne + Nagel general director and president of the Russia + CIS cluster, Perry Neumann says: “By continually expanding our logistics network we offer throughout the entire region an integrated service portfolio according to our highest quality standards to both local and international customers from all major industries. “Particularly in Azerbaijan and Kazakhstan, our proven expertise in oil & gas and project logistics and our strong global network are best suited to meet the soaring market demand and provide comprehensive state-of-the-art solutions.”

Landmark 60th edition of IATA DGR published

he 60th edition of the IATA Dangerous Goods Regulations, effective January 1, 2019 incorporates all amendments made by the ICAO Dangerous Goods Panel in developing the content of the 2019–2020 edition of the ICAO Technical Instructions as well as changes adopted by the IATA Dangerous Goods Board. The edition’s 1,100 pages, available in printed and electronic forms, is a reflection of the growing demand and sophistication of dangerous goods airfreight movements. In contrast, the 1956 edition contained only 80 pages. There are a number of changes from the 59th edition which have been prefaced in the section or subsection in which the change occurs. Other than detailed, technical changes on a range of topics, the authors have altered the many instances of the word ‘risk’ to ‘hazard’. For instance, “subsidiary risk” is now “subsidiary hazard”. This change has been made to reflect the correct usage of the term “risk” to align to the meaning of risk in accordance with safety management systems (SMS) where safety risk is defined as: “the predicted probability and severity of the consequences or outcomes of a hazard”.

Most up-to-date

According to David Brennan, assistant director, cargo safety and standards, IATA, air cargo professionals must get the most up-to-date version of the Regulations. He says: “It is important that people obtain the next edition of the Regulations. Shippers would be very embarrassed

Brennan and frustrated if their consignment of dangerous goods were offered for transport using old provisions in the regulations and to find they have been changed and their shipments been refused. “Equally, airlines, forwarders and ground handlers need to be using the most up to date information so that they ensure what they are putting into transport or indeed aeroplanes are compliant and indeed safe to travel.”

Detailed updates

Areas of airfreight operation and cargoes which have dangerous attributes which have

seen updates in the 60th edition include: • Examples have been added to provide an explanation of the 3-month “window” for recurrent training and the application of the original training expiry. • New text has been introduced to clarify that the most appropriate entry that describes the item must be used and where an article contains more than one item of dangerous goods, all applicable provisions must be met. • The provisions applicable to battery-powered mobility aids have been revised to simplify and standardise the requirements for loading in an aircraft where the operator is responsible for ensuring that the mobility aid is properly restrained and protected against damage from baggage or other cargo. • There are a number of additions, deletions and amendments to variations submitted by States and operators. • Clarification on the classification of ammonium nitrate fertilizers. • New classification criteria have been added to address hybrid lithium batteries that are comprised of lithium metal and lithium ion cells. (g) identifies that manufacturers and subsequent distributors of lithium cells or batteries must make available a summary of the UN 38.3 tests with effect from 1 January 2020. • This addresses the classification of articles where the type or quantity of dangerous goods that are an integral part of the article exceed that allowed as UN 3363. • Twelve new UN numbers, UN 3537 to UN 3548, that have been assigned to articles containing dangerous goods in Classes 2, 3, 4, 5, 8

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and 9 and Division 6.1; • Identifies that hybrid lithium batteries, which are comprised of lithium metal cells and lithium ion cells, must be assigned to UN 3090 or UN 3091 and the limits that apply when assigned to Section II; • A subsection has been revised to bring in reference to new ISO standards and also to identify the period during which the ISO standards may be applied for manufacture and also after which time the standards may no longer be used. • A note has been added to draw attention to the correct application of GHS pictograms on packages. • The specification for hazard labels has been revised to remove the requirement for the outside line to be a minimum of 2 mm in thickness. • Clarification has been added that the new Class 9 lithium battery hazard label must not have any text in the bottom half other than the class number “9”. • Lithium battery handling label—The provisions that previously existed in 7.2.4.7 and Figure 7.4.H have been deleted as the lithium battery handling label is no longer valid in air transport.

Airfreight professionals can learn more about the changes between the 59th and 60th editions by visiting www.iata.org/ dgr-update

ACW 8 october 2018

Margaritas toast NAP’s Mexico meeting A

Michael Sales donned his sombrero to bring you this report from Mexico

he third annual global meeting of Neutral Air Partner (NAP) was held in the St Regis Punta Mita resort on the Mexican Pacific coast recently. Some 95 delegates gathered for three days of intense meetings and networking, mixed with social events, beach parties and Margaritas. NAP is the brainchild of Christos Spyrou who has spent over 25 years in air cargo business about which he is passionate and continuously active. Having founded the Air Cargo Group in Shanghai in 2003, he has spent 10 years in China offering air cargo services and training to major global logistics organisations through his consulting firm Air Cargo Plus. Spyrou is a passionate believer in networking activities and corporate advisory solutions and is also the founder of Aero Africa as well and air cargo XL rate engine. The NAP network with over 230 like-minded air cargo specialists from 85 countries, positions itself amongst the largest operators in tonnage and revenue in the global air cargo industry. “Our real mission is to partner with our members and set new standards of excellence, competitive advantages, whilst developing a range of innovative products and services,” explains Spyrou.”We aim to become the industry’s most powerful group of independent cargo specialists. Air cargo needs the experts also the right tools and innovative IT solutions. and mechanisms for financial security. Our members join by invitation and are carefully defined and qualified with proven track records and service quality plus financial status. We in turn, offer them access to innovative services and E-AWP solutions essential for today’s air cargo professionals. “During our meetings, we arrange a programme of one-to-one workshop meetings which are fixed in advance so that nearly everyone is able to meet their desired partner. This time in Mexico we had around 95 delegates and in addition to the work-

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shop meetings, we enjoyed an active social programme greatly enhanced by the beautiful surroundings of the resort, in the bars, on the beach and in the restaurants. It may seem like a vacation but believe me it is hard but joyful work enjoyed by everyone.” “We must adapt - no choice,” warns NAP head of e-Freight development Sam Okpro. “The time is coming when everyone will have to comply with new regulations concerning pre-clearance. I am talking about pre-loading advance cargo information, or PLACI, coming into force in the very near future. This new regulation is backed by the World Customs Organization and ICAO and is a

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new modification whereby the responsibility lies with the forwarder and not the airline, a significant difference where the house air waybill (HAWB) will be the important step in the airfreight transaction. “This new system containing detailed information about the consignment and is origin is being introduced immediately in the USA and during 2019 for Canada and the EU. And the rest of the world will be obliged to follow in due course.” Next year’s summit is planned for Crete where 200 delegates are expected, notes Spyrou.

Why success is Critical for IAG Cargo

t has been reassuring for IAG Cargo director of sales and marketing Camilo Garcia that the market has welcomed the group’s new highest priority product, Critical, this year. In just its first six months, the group saw almost 2,500 bookings, notes Garcia, promising a substantial number by year’s end. He says: “This is a premium product with a special tariff. We set it up as an emergency, last-minute, must-fly product.” In July, the group launched a Critical Service Centre, a customer service team dedicated to Critical. The team of emergency solution experts monitor, advise and implement every single Critical shipment. Garcia is convinced that the service is creating “new streams of business” for the group, not simply cannibalising existing business. This revenue stream is likely to be from customers who would previously used an inte-

for vital life-science cargo that is life-changing medicine. This is high value, premium freight,” he says. In the second half of this year, the group will remain focused on investing in operation, embracing digital innovations and developing products and services to enhance how it deliver for customers. Garcia is keen that while much is made of the digital transformation that is happening in airfreight, including projects such as the Unmanned Autonomous Vehicle recently trialled at London Heathrow, forwarders and shippers need to know that IAG Cargo is not abandoning commodity airfreight to lean on premium freight activity. “In both areas, we will deliver added-value to our all clients,” he says.

grator, he says. “We do not know where the traffic is coming from but I think it is from integrators or other carriers.”

No weight limit

Garcia

Garcia explains that one characteristic of the Critical service that clients take advantage of is that there is no weight limit for consignments. He says: “We have moved pallets using this product.” However, 95 per cent of consignments have been under 300 kilogrammes. He was talking soon after the airline group released its Q2 2018 results, reporting commercial revenues of €281 million over the period from April 1 to June 30, 2018, an increase of 9.6

per cent on 2017 at constant exchange. Overall yield for the quarter was up 10 per cent at constant exchange. Sold tonnes were flat and CTK volumes were down 0.4 per cent whilst capacity grew by 3.3 per cent as the airfreight market continued to see relatively strong growth throughout the first half of 2018. These are interesting times for the airline group, believes Garcia. Significant investments at both London and Madrid hubs, including the construction of a new Constant Climate centre in Madrid and the continued development of Premia, the group’s new premium freight facility in London bode well for the future. “We’ve launched our Constant Climate product and developed a centre in Madrid. This is

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FWD.Rewards

One product about which Garcia is excited is the FWD Reward scheme. Launched in 2017, the scheme, which is free to join, rewards small and medium-sized forwarders (SMEs). He says: “FWD.Rewards has been a great success. Since we launched it, we have seen more than a thousand SMEs join.” Rewards given to the companies that join include hotel accommodation for staff, cargo credits and even passenger flights for individuals. FWD.Rewards is a loyalty programme specially designed to reward small and medium sized freight forwarders every time cargo is sent with points.

ACW 8 october 2018

tiaca acf preview

ACF: getting to grips with the digital revolution in air cargo

e :are now a week away from this year’s Air Cargo Forum, taking place in Toronto, Canada on 16-18 October, and it’s an exciting prospect. We’ve pulled together an excellent list of voices from across the air cargo world who will be sharing their perspectives on the industry and the best way to take it forward. The big themes on the packed seminar program are the digital revolution, Big Data, robotics and Blockchain, and how the industry

Other seminars will can react to the impliBy Sebastiaan Scholte, bring expert voices to cations of the digital discussions on air carfuture, and go beyond TIACA Chairman go’s value proposition, that to truly creating service quality, secuopportunities for itself rity, and e-commerce, the blurring line between within the new environment. For that reason, we will be particularly technology and logistics services and the impact pleased to welcome Nicole Verkindt, the Cana- of autonomous vehicles, and we end on how we dian host of Dragons’ Den Canada and founder train for the future and keep our best talent in of OMX, who will be among the panellists in the the industry. The topics chosen are those that occupy the kick-off session looking at the digital transforminds of air freight professionals, so we expect mation of air cargo supply chains. to have lively sessions that are useful for the audience and really get under the skin of the subjects that we are all confronting. This will set us on the path to transforming our industry to meet our future needs.

Collaboration

For TIACA, as well as the content of the seminars, we have been particularly pleased to collaborate with so many other organisations in the freight world. Among them, representing the region where

the ACF takes place, are the Canadian International Freight Forw a r d e r s Association (CIFFA) and the Canadian Chamber of Commerce. Bringing the industry Scholte together, collaborating and sharing experience is what will ensure that the industry as a whole finds the right answers to the challenges of tomorrow, and TIACA prides itself in facilitating these useful exchanges. We have therefore also partnered with the Federation of National Associations of Cargo Agents and International Logistical Operators of Latin America and the Caribbean (ALACAT), Americas Alliance, AGUNSA, the African Airlines Association (AFRAA), the Airforwarders Association (AfA), and Neutral Air Partner, and the Airports Council International, so as to broaden the base of participation across disciplines and continents. Beyond the useful industry discussion, the ACF is also a great networking opportunity, where the industry comes together to have the face-to-face meetings not possible in our daily lives. Women in the industry have a special networking opportunity preceding the main reception on the eve of the event. As ever, we will have a lively exhibition, where visitors can find out about the latest products and services in the market, do business and network further. We expect over 4,000 people to pass through the doors of this unique event and we look forward to welcoming those visitors to what promises to be a landmark event for the industry this year. TIACA’S ACF AND EXHIBITION 2018

Nicole Verkindt, the Canadian host of Dragons’ Den Canada and founder of OMX,

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Metro Toronto Convention Centre Toronto, Canada Exhibition Hours October 16th: 11AM – 8PM October 17th: 10AM – 9PM October 18th: 10AM – 4PM

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tiaca acf Preview

Plan your visit to ACF Toronto 2018

isitors to the Air Cargo Forum in Toronto can make contact with some of the most important players and suppliers in the global airfreight industry.

Air Cargo Week

Azura International, Robert Denholm House, Bletchingly Road, Nutfield, Surrey RH1 4HW, UK Contact: Kim Smith www.aircargoweek.com +44 (0) 1737 645777 AZura International is a media and events company with leading positions in the international logistics market. Booths 6403 & 6504 ACUNIS

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Atlantis Transportation Services

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Booth: 5513

Base Plastics

Booth 5703

Airline Services International

Booth 4309

all-lift

Booth 3906

Anchorage International Airport

Booth 5907

Americas Alliance Asia Cargo News ASTROPHYSICS

Booth 1915

Booth 1907

Booth 5906

Booth 6509

Booth 4807

Becon Projects

Booth 5409

C.H. Robinson

Booth 2103

Brussels Airport

Booth 5101

Booth 5503

CHAMP Cargosystems UK

Bangor International Airport

Africa Pavilion Agility

Animal Transportation Association Booth 6304

Booth 5306

CAAS

Booth 5803

Canadian Shippers Magazine

Booth 1906

CACC Cargolinx

Cargo Flash InfoTech Pvt Ltd Cargo Screening K9 Alliance Cargo Trends

Booth 4707

Booth 3109

Booth 4109

Booth 6507

CargoJet

Booth 4800

Celebi Delhi Cargo Terminal

Booth 5100

CEIA S.p.A

aircargoweek.com

Booth 4706

Booth 4709

Chapman Freeborn International

Booth 5009

CIFFA

Booth 4515

Booth 5715

Booth 2100

DGOffice

Booth 5309

DUS/HAM/BUD

Booth 5313

Edmonton International Airport

Booth 3007

Coyne Transport DSV

ECS Group

ForwardAir

Freightweek

Global eTrade Services

Booth 2204

Booth 1809 Booth 5015 Booth FA

Booth 6615

Booth 2809

Greater Toronto Airport Authority Booth 2400 Greenville-Spartanburg Airport

Booth 3206

Halifax Partership

Booth 5913

Groupe ADP

Booth 2206

tiaca acf Preview

.. with our handy exhibitors’ listing Hartsfield-Jackson Atlanta International Airport

Booth 6209

Hong Kong International Airport

Booth 4500

India Pavilion

Booth 5100

John F. Kennedy International Airport

Booth 5707

Incheon International Airport Corporation Jan de Rijk Logistics

Koln Bonn Airport

Booth 2609

Magaya Software

Booth 3909

Miami International Airport

Booth 3500

National Air Cargo

Booth 6306

Neutral Air Partner

Booth 1914

Kale Logistics Solutions Lodige Industries GmbH Mexpress Transportation, Inc. Momentum Logistics

Network Cargo Management Paris-Vatry Airport

Booth 5100

Booth 2209

PROS, Inc.

Booth 5915

Rubb USA

Booth 3506

Booth 2104

Details are correct at time of going to press. Errors and ommissions excepted.

Booth 2006 Booth 6510

Shipco Transport

Booth 3006

Silk Way West Airlines

Booth 5410

Skyline Air Services

Booth 2609

Booth 5704

Booth 4803

Southwest Airlines Cargo/Westjet Cargo

Booth 5013

StratAir

Booth 3009

The STAT Trade Times

Booth 5904

The Boeing Company

Turkish Cargo

Booth 5804

Yakidoo

Booth 5303

Booth 3908

St. Louis Lambert International Airport

Travel Technology Interactive – Brasil

Booth 4100

Booth 5709

Booth 6204

Sharjah International Airport

Singapore Changi Airport

TIACA

Worldwide Flight Services

Booth 6410

Booth 6003

Siemens Postal, Parcel & Airport Logistics GmbH

See you in Toronto!

Booth 2310

Booth 5706

Sabrewing Aircraft Sendum Wireless

WiseTech Global

Booth 6210

Booth 2203

Rickenbacker International Airport

Booth 3207

Booth 6206

Port of Saint John

Quick Caller

Wiremind

Booth 5713

Booth 2210

Booth 6213

Prince George Airport Authority

Booth 4503

Booth 5310

Pharma Aero

Pittsburgh International Airport

Volga Dnepr UK Ltd

Booth 5806

Winnipeg Airports Authority

Booth 4108

Booth 3209

Booth 5315

UTC Aerospace

Booth 2606

K2 Solutions, Inc.

United Airlines

Booth 6006

Booth 4306

aircargoweek.com

ACW 8 october 2018

north america

FAA summit sees solutions for pilot shortage The Federal Aviation Administration’s recent workforce summit cheered airfreight operators with its optimistic and realistic outlook on creating solutions to the pressing and crippling issue of pilot shortages

ccording to Kathryn Creedy of the Hyannis, Massachusetts-based Regional Air Cargo Carriers Association (RACCA), “no one could walk away from the recent FAA Workforce Summit without feeling optimistic and energised about the future.” Speakers reported there was more interest than ever in pursuing aviation as a career and solutions targeted both pilots and aviation

ACW 8 october 2018

maintenance technicians. “There were a lot of concrete ideas for solving our problems and it was great to hear all the grass roots programmes to get kids interested in aviation,” said RACCA president Stan Bernstein of the one-day event. “But it was also sobering. There is a lot of work needing to be done to reach workforce goals including the changes needed in the financial, regulatory and legislative arenas which constitute a significant barrier not only to entry but to incorporating 21st Century training techniques into civil aviation programmes.” RACCA represents Part 135 and Part 121 cargo carriers who typically retrieve packages and other cargo from smaller North American communities and fly them in late afternoon to a major airport where they are consolidated

with freight from other cities and loaded aboard a larger aircraft for a longer flight to a sorting centre. As speakers called for a holistic approach and training reform: “Nothing can be off the table,” said National Air Carrier Association president George Novak. Experts, including Bernstein, reported how pilot shortages are affecting cargo carriers and e-commerce as well as communities and the fact many training slots are taken by students from other countries. Others recounted recruiting efforts expanding down to the elementary school level and the return of “cool” to the aviation career. Perhaps most gratifying, however, was the training changes being tested now by the US Air Force that will produce better pilots in half the time. The inclusion of such groups as Women in Aviation and the Organization of Black Aerospace Professionals (OBAP) provided a unique look into one of the most problematic issues in the industry – the lack of racial and gender equality in the workforce. Indeed, many speakers, including OBAP, spoke of their efforts in getting off the airport and into the inner cities to attract the next generation and the importance of addressing transportation for under-served communities. Republic Airline even has a mobile classroom with four Virtual Reality simulators to reach beyond the airport into local schools. Republic senior VP Matt Koscal says: “We need to replicate this nationwide. We need a lot of help to ensure financing is available and we definitely need to address this at the regulatory and legislative levels.” “I’ve never seen such a collection of experience talking on a single issue,” acting FAA administrator Dan Elwell, said in his closing remarks. “We have ‘violent agreement’ that workforce development is a real and pressing challenge and shortages are already costing the country and the industry.” RACCA was invited to participate in the summit, organised by DOT secretary Elaine Chao and FAA acting administrator Dan Elwell, and provided expertise on two panels. The fact that many in industry have been alarmed about workforce shortages for so many years, makes it stunning this was the first time the entire industry – airlines, universities, government officials from the departments of Labour, Education and Transportation, and

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most of the alphabet soup groups in Washington – convened to discuss one of the most critical issues facing our industry today, says Creedy.

Millenials demand changes

At the FAA event, RACCA president Bernstein pointed out the industry is facing a new generation unlike any encountered before. “One of the most important issues is the fact we are dealing with a different generation of pilots in the same old-school way,” he said, echoing US Air Force secretary Heather Wilson’s comment training regimes have not been changed in 30 years. “We are encountering the millennial generation and have to adapt and change our ways to address that. This new generation is looking for quality of life and we have to find ways to deliver that. Addressing workforce issues that need to change allows us to grow and expand, something we can’t do now because of the critical shortage.” He also spoke of other shortages, echoing several other speakers. “Simulators are taxed to the limit and it takes months to schedule a session,” he said. “There is a shortage of designated pilot examiners and CFIs. These are all issues that need to be addressed. There is no one solution to all the problems we face. It is our long-term, strategic responsibility to develop programs, training partnerships and flowthrough programs but our immediate problem is real because aircraft are grounded. Management is flying more often and that is taxing other departments. There are no magic wands here so we have to attack this on multiple fronts including modernising training and developing financing. What we have not mentioned is national aviation academy. Perhaps it is time to look at that as one of the solutions.” RACCA, said Bernstein, has long been working with universities to restore the pipeline. “We have a long-term, strategic responsibility to develop programs, training partnerships and flow-through programs,” he said, citing the FedEx Purple Runway and the UPS Gateway programs. “These new flow through programs are up to date examples of meeting the new pilot needs for our regionals as well as guaranteeing future pilot availability for our integrator partners. I’m proud to point out one of our members – Cape Air – created the nation’s oldest pathway programme with JetBlue and has provided the model of all other programmes.”

north america

FAA reauthorisation to include pilot grants

he FAA bill that would provide long-term funding for the agency until 2023 now under consideration in both the House and Senate, includes the important workforce measures not only providing $5 million in annual grants for the development of aviation technician programs but a similar grant program to cover pilot training. There is also a provision for Part 147 reforms and new construction grants for rural airports, according to the Aeronautical Repair Station Association (ARSA) which spearheaded an effort supported by RACCA. “The grant program is authorised for five years at $5 million per year,” said ARSA in reporting its success. “Grants of up to $500,000 are available to aviation business or unions, schools and governmental entities that collaborate to create innovative workforce development programmes. It’s worth pointing out that our coalition was so successful in raising the visibility of the aviation industry’s workforce challenges that the FAA bill includes an entire workforce title (Title VI). It requests several GAO reports, directs updates to part 147 (the regulation governing aviation technician schools) and establishes various workforce-related panels, advisory boards and outreach initiatives.”

Bangor International Airport

Bangor promotes itself as economic tech stop

Bangor International Airport will be highlighting its role as an ‘economic tech stop’ at this year’s TIACA Air Cargo Forum and Exhibition at the Metro Toronto Convention Centre, October 16–18. “While tech stops are a well-known part of the bizav lexicon, the term economic tech stop is a rather newer addition,” says BGR marketing manager Aimee Thibodeau. “In simple terms, using Bangor International as an economic tech stop allows aircraft to take on less fuel for the initial leg of their journey, thereby increasing the payload; clear Customs and Border Patrol more quickly due to the lack of congestion at the airport; and take on the remainder of their fuel at highly competitive prices. “Our flexible fuel arrangements and contract pricing make us the most competitive fuel supplier on the East Coast,” she adds. “Add that to the ability to carry more cargo and you soon see why the economic tech stop concept is proving so popular, especially to those involved with cargo. Our study shows that a carrier can increase revenue upwards of 70 per cent per flight with this strategy.”

United orders more 787-9s

United Airlines is expanding its Boeing 787 Dreamliner with an additional nine 787-9s in a deal valued at $2.53 billion at list prices. The new aircraft will replace older widebody jets, which can fly further and use 20 per cent less fuel with 20 per cent fewer emissions. United announced it would purchase four 787-9s in July and now has a total of 64 Dreamliners on order. The United deal continues the strong momentum for the 787 Dreamliner family with net orders for the year passing 100 and just one shy of the 1,400 mark since the start of the programme. Nearly half of 787 customers have placed additional orders. Boeing Company senior vice president of commercial sales and marketing, Ihssane Mounir says: “It makes all of us very proud to have United place a repeat order since its team has spent a lot of time with the Dreamliner and knows what it can do.” United began flying the Dreamliner in 2012 using it on intercontinental routes including Houston to Sydney and San Francisco to Singapore.

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ACW 8 october 2018

moscow

ABC drives double-digit growth in Moscow Infrastructure upgrades and the continued growth of AirBridgeCargo Airlines means Moscow is an increasingly important gateway between Europe and Asia

irBridgeCargo (ABC) Airlines will continue to develop Moscow as a gateway with airport partners, having helped increase volumes at Sheremetyevo International Airport by 20 per cent. Total cargo volumes at Sheremetyevo were 60,000 tonnes in the first eight months of 2018, with around 40 per cent originated from China, with commodities including hi-tech equipment and electronics, and e-commerce shipments.

The rest came Europe and the Americas, with fashion goods, pharma products, industrial equipment and e-commerce coming from Europe and different industrial equipment and e-commerce from the Americas. Aerospace exports bound for Europe are strong.

Moving to the next level

ABC general director, Sergey Lazarev says: “Our joint commitment to bringing the level of logistics sector services in Russia to the next level is shouldered by introduction of the latest technologies and modern equipment, application of cutting-edge IT solutions to improve customer experience, and paying particular attention to talent acquisition and proper training.” With the peak season approaching, Lazarev says ABC is expecting demand in Russia to increase driven by online sales events including single day, pre-Christmas and New Year sales.

Transit cargo to grow

Lazarev says: “Apart from that, we forecast upsurge of transit and transfer volumes through our hub in Moscow Sheremetyevo Airport on trade lane Asia-Europe during peak season. Overall, our assumption for the growth of Moscow export/import volume is that it will exceed 20 per cent.” The airline has been focusing on products for high-end services for special cargo including pharmaceuticals, dangerous goods and e-commerce. The airline has also been listening to customers and introducing new routes where required. “This year, so far, we have covered regions of Americas with the introduction of Columbus, Budapest, and Ho Chi Minh City to meet the market demand and customer expectations with various types of cargo. Each new point within our international network facilitates access to more cargo destinations worldwide with wide choice of products for special cargoes” Lazarev explains.

Listening to customers

The aim is to continue expanding ABC’s network based on customers’ demand and developing specialist products including abcPharma, abcDG and abcXL, which Lazarev says are in “great demand among our customers”. Quality of service is very important, with Lazarev saying: “One of our key focuses will remain bringing level of quality performance to a higher level and keeping our 48-hour cargo delivery option for the whole network, optimising our

ACW 8 october 2018

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costs and developing IT infrastructure to make the process of air freight delivery as transparent and easy as possible.” As with any airport, there are challenges of doing business in Moscow including airport operations being focused on passenger demand. Russia’s weather, particularly in the winter can also cause delays. Customs regulations mean BUP cargo acceptance and hand-over are not possible, and though the first steps towards e-document implementation has taken place, it will be a long time until there is 100 per cent penetration in Moscow.

Much to be positive about

Despite the challenges, Moscow is in a favourable geographic location with infrastructure receiving significant upgrades in recent years. Lazarev cites road improvements, improved rail access across the country and logistics centres around the Moscow circle road. Imports are benefiting from surging e-commerce Lazarev sales in Russia and the development of business relations with other countries. Moscow’s airport operator also understands the importance of cargo infrastructure and is working to attract more cargo carriers. Lazarev also highlights qualified personnel as another reason for making Moscow a successful gateway, saying: “For the last 10-15 years the logistics sector has managed to grow its own professionals, who are properly trained, certified, and have the right set of knowledge and understanding of the market and infrastructure.”

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United Arab Emirates

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