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The weekly newspaper for air cargo professionals No. 1,022

11 March 2019

The beacon of stability

NTSB review Amazon crash black box

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INSIDE tiaca to go to budapest

budapest Airport will host The International Air Cargo Association’s Executive Summit and Annual General Meeting from 20 to 22 November 2019 ... page 2

first 737-800 for ethiopian

ethiopian Cargo took delivery of its first Boeing 737-800 Freighter on 1 March, to be used on short haul services in Africa and the Middle East ...

ngineers at the US National Transportation Safety Board’s Office of Research and Engineering Vehicle Recorder Division have completed the initial review of the Atlas Air Flight 3591 cockpit voice recorder and recovered the flight data recorder. Three people died when the Boeing 767-300 crashed into muddy

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marshland in Trinity Bay, Texas on 23 February about 40 miles from Houston George Bush Intercontinental Airport. The aircraft, which was carrying cargo for Amazon.com and the US Postal Service from Miami, was destroyed. Directors from the Office of Research and Engineering and the Office of Aviation Safety say that the length of the recording is around two hours and was obtained from a download of a solid-state type cockpit recorder. The quality of the audio is poor, and there are times during the recording when the content of crew discussion is difficult to determine, though at

other times the content can be determined using advanced audio filtering. The crew was in communication with air traffic control and were being provided radar vectors for the runway 26L. The crew lost control of the aircraft about 18 seconds prior to the end of the recording. The flight data recorder arrived at the NTSB’s Recorder Lab on Sunday 3 March at 11.45pm with the memory module being disassembled, cleaned and dried, with the data being downloaded on Monday afternoon. The initial review revealed that the flight data recorder contained about 54 hours of data from 17 flights, and there were 350

parameters recorded, detailing the motion of the aircraft and operation of its engine, flight controls and other systems. NTSB recorder investigators are verifying and validating the flight recorder data, and technical experts will review the cockpit recorder to produce a transcript of the accident recording.

cal adds second oslo flight

cal Cargo Airlines has added a second weekly flight from Oslo to Tel Aviv, starting on 1 March. The Friday departure adds 3,500 tonnes of seafood ... page 4

fta discusses aviation 2050

according to Alex Veitch, head of multimodal policy FTA, nearly half of the UK’s exports by value to nations outside the EU move by air ... page 10

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07/03/2019 14:31

NEWS Budapest to host TIACA executive summit

udapest Airport will host The International Air Cargo Association (TIACA)’s Executive Summit and Annual General Meeting from 20 to 22 November 2019. The summit will bring together decision makers from across the globe for a series of panel discussions, keynote speeches and round table debates. The airport will host an opening ceremony for its freight centre, BUD Cargo City, inviting delegates, customers and suppliers to tour the facility, followed by a Gala Dinner at the Historic Terminal One building, where the TIACA Hall of Fame winner will be announced. Sebastiaan Scholte, CEO of Jan de Rijk and TIACA chairman says: “We are pleased to be visiting Budapest at such an exciting time for the airport and are looking forward to providing a platform for the industry to look for ways to better collaborate.” BUD Cargo City is part of the €160 million BUD:2020 Development Programme at the airport, which services 45 airlines and handled 146,113 tonnes of cargo in 2018. Jost Lammers, CEO of Budapest Airport says: “We as the host are excited and extremely proud to announce that Budapest Airport is able to bring the 2019 TIACA Executive Summit to the city of Budapest, being selected after competing with other top locations

worldwide and following previous prominent locations of TIACA events in Toronto, Miami, and Paris.” René Droese, executive director property and cargo at Budapest Airport says: “The summit will represent the beginning of a new chapter for our partners and for Budapest in many respects. We will organise our BUD Cargo City opening event as part of the executive summit.”

In next week’s ACW

Celebrating 60 years of ULDs

Old News

Martinair to axe Australia freighter

20 October 2008

etherlands-based cargo carrier Martinair says it will drop its twice-weekly B747-400BCF (Boeing Converted Freighter) services from Amsterdam Airport Schiphol into Australia from 22 December. Harm Winkeler, Martinair vice president Asia Pacific, said that different developments had led to the decision to cease operations at Sydney. “First and most important was the airline’s decision to further develop its growing Latin America and Africa markets, which is only possible with changes in our present network,” Winkleler said. Secondly he blamed the “unprecedented increase in fuel prices”, for putting pressure on the economic viability of the Sydney operation and he growing trend to move cargo from Europe to Australia by sea-air services.

Quote of the week

“Make Britain freight again!” One of the uncredited participants at the FTA airfreight round table, revealing what he wanted his organisation’s report on the future of UK air freifght to be called before it was turned into boring, officialise.

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aircargoweek.com 07/03/2019 14:32

Special cargo mitigates slow start to 2019

lobal air cargo got off to a slow start in 2019 with volumes dropping 2% in January, with special cargo mitigating the fall, according to WorldACD. General cargo got off to a slow start, down 5% with valuables and dangerous goods also down, though perishables grew 6%, high tech by 4%, pharmaceuticals by 5% and live animals by 9%. Smaller regions experienced growth, with Africa up 3.8% and Central and South America by 0.6% but larger markets struggled. Origin Europe and North America both declined around 4%, but incoming business in Asia Pacific was down 6%, with origin from North America falling 8% and Europe 9.5%. Origin China grew by 5% but destination China fell by more than 10%, a trend WorldACD observed in the past two months but was more noticeable in January due to the early Chinese New Year. Certain countries did well, with Morocco and Egypt being the bright spots of Africa, along with Ecuador and Costa Rica for Central and South America. Individual countries in Western Europe dropped 5.5% but the UK grew 5%, which WorldACD speculates could be a pre-Brexit stock up of British made goods. WorldACD also looked at companies that performed well, reporting that Asia Pacific airlines grew 0.7% whilst Africa, MESA and Central and South America did not grow. Airlines in North America grew by 6.3% and Europe by 3.8%, with Europeans improving their share everywhere but Europe

Ethiopian Cargo receives first 737-800 Freighter

Ethiopian Cargo took delivery of its first Boeing 737-800 Freighter on 1 March, to be used on short haul services in Africa and the Middle East. The 737-800 has a capacity of 23 tonnes, and joins the fleet of Boeing 777-200 Freighters, and passenger aircraft consisting of Airbus A350s, Boeing 787-8s and -9s, Boeing 777-300ERs and -200LRs, and Bombardier Q400s. Tewolde GebreMariam, group CEO of Ethiopian Airlines says: “The B-737-800 Freighter will give us a new capability to serve short haul destinations in African and the Middle East more economically which includes the export of Ethiopian meat, fruits and vegetables to the Gulf Region. As per our strategic roadmap, Vision 2025, we will keep introducing new systems and technologies and play an indispensable role to the socio-economic development of Ethiopia and Africa at large.”

Daniel Pohl has been appointed managing director of Dachser Malaysia. The 36-year-old from a German-Indonesian family has lived in China for 23 years will report to Christophe Vincent, managing director Air & Sea Logistics Thailand, Singapore, Vietnam and Malaysia. Pohl joined Dachser in 2010 and his most recent role was in sales in the North China business area.

itself. Among forwarders, 13 with a European origin grew by 0.5% whilst four MESA and North American forwarders were up by 1.5%. WorldACD says the winners were the Japanese forwarders, growing by 7.2% mainly driven by growth in Asia Pacific and North America. Major perishable forwarders including Kuehne + Nagel, Panalpina, DB Schenker and Newport recorded growth of 13-16% in this category. GSAs grew by 5.2% with ECS and WFC groups who represent 30% of the market, growing by 3.7%, with individual performances differing quite a bit.

Extraordinary general meeting for Panalpina

Panalpina’s board of directors will hold an extraordinary general meeting on 5 April to discuss implementing One Share – One Vote. The meeting will be held at the Congress Center in Basel, Switzerland at 14.00 local time to support the motion by shareholder Ernst Goehner Foundation to implement the One Share – One Vote standard. On 25 February, the foundation requested to amend the articles of association of Panalpina by lifting the 5% registration restriction and the 5% voting restriction in order to enhance corporate governance. DSV made a takeover bid for Panalpina in January, but the Ernst Goehner Foundation, the largest shareholder informed the board of directors that it did not support the proposal, saying Panalpina should pursue an independent strategy of mergers and acquisitions.

Hurricane Maria aid still flying into Puerto Rico

Pearl Aircraft chairman Jan Soderberg has organised the delivery of 13 tonnes of medical supplies to areas of Puerto Rico still devastated by Hurricane Maria. The supplies included hospital beds, ambulation devices, general primary medical supplies, exam tables, stretchers and more. Soderberg sourced the supplies through New York-based Afya Foundation and organised transportation with the use of his private aircraft and a Boeing 737 Freighter donated by US charter airline, Swift Air. The chairman says that as his company’s headquarters are in Puerto Rico, he has a vested interest in the island and the well-being of the people. Soderberg says: “I feel it is my civic duty to give back to my fellow U.S. citizens, that is why I have provided my own private aircraft to ship the medical supplies that the Afya Foundation has so generously donated. I

want to thank Swift Air and its Chief Executive Jeff Conry for donating the transport of supplies from Miami to Puerto using its cargo aircraft, and Afya Foundation for making this experience so positive and seamless.” Puerto Rico was devastated by Hurricane Maria in September 2017, and the island is recovering. Soderberg says that immediately following the hurricane, much of the aid was unusable, saying: “What I have learned is that many goods that initially arrived in Puerto Rico ended up in the garbage dump. This was due not only to an inability to distribute goods when local infrastructure such as harbours, roads and electrical grids were destroyed, but also, importantly, due to failure by donors and aid organisations to listen to the local needs.”

C.H. Robinson has acquired The Space Cargo Group, a provider of international freight forwarding, customs brokerage and logistics services in Spain and Colombia for €42 million. Madrid, Spain-headquartered Space Cargo provides air and ocean freight forwarding services to over 2,500 active customers. It has seven offices in Spain and one in Colombia, employing 170 people. Cargo volumes at Singapore Changi Airport were down by 2.4% in January to 171,000 tonnes. On 29 January, Jetstar started a thrice-weekly charter service to Xuzhou, Singapore’s first link to the Chinese city. On 1 February, Juneyao Airlines launched daily services to Shanghai Pudong using a Boeing 787-9. Runway 18C-36C at Amsterdam Airport Schiphol will be closed between 10 March and 21 April for scheduled maintenance. Asphalt will be renewed, along with markings, lighting and cabling. Runway lighting will be replaced with LED lights where possible. Around 200 employees working in different crews will work 24 hours a day to ensure the runway is not closed any longer than necessary. Lutco has launched a new line of ball transfers for air cargo and other heavy duty load applications, which it says will suit airlines, couriers and fulfilment centres requiring material handling equipment to move cargo through their facilities. The transfers are designed to be long-lasting and wear-resistant to maximise efficiency and minimise downtime due to maintenance. They are designed to fit industry standard holes, with the inner race designed to provide smooth running quality in all directions using an optimised internal geometry that enhances load carrying capability. Air Canada will fly from Vancouver to Auckland, New Zealand four times a week from 12 December 2019 to the end of March 2020 using a Boeing 787-8 Dreamliner. Air Canada will also connect Toronto and Quito, Ecuador with three Boeing 767-300ER flights a week from 8 December, and operate three flights a week between Montreal and Sao Paulo, Brazil using a 787-9 from 11 December. Qatar Airways will increase weekly frequencies to South Africa with extra flights to Johannesburg and Cape Town. Weekly frequencies to Johannesburg will increase from 14 to 18 in July, with a 19th in August and another two by the end of October. Cape Town services will increase from seven a week to 10 from 27 October. Ma Tao has taken up the role of regional vice president for North Asia at the International Air Transport Association. He will be based at the North Asia Regional Office in Beijing, which covered Greater China, Mongolia and North Korea. Ma joins IATA’s strategic leadership team, reporting directly to director general and CEO Alexandre de Juniac. He has over 30 years of aviation experience, and joins from the Civil Aviation Administration of China, where he was head of the Airworthiness Certification Center.

He was accompanied by former president Bill Clinton and former secretary of state and presidential candidate Hillary Clinton. In the days following the redevelopment site visits, Soderberg joined the Clinton’s at a meeting of the Clinton Foundation’s Global Initiative Action Network on Post-Disaster Recovery, which was held in San Juan.

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ACWBITEs

Rolls-Royce has withdrawn from the competition to power Boeing’s proposed New Midsize Airplane platform. It says it is unable to commit to the proposed timetable to ensure Rolls-Royce has a “sufficiently mature product which supports Boeing’s ambition for the aircraft and satisfies our own internal requirements for technical maturity at entry into service”.

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NEWS dnata aims to be the world’s most admired service provider

dnata has evolved over the past seven years from a primarily Dubai-based ground handling operation to an international one, according to Steve Allen. The divisional senior vice president of UAE airport operations was talking to journalists on Wednesday 20 February in Dubai, where he explained that dnata now has more operations overseas than it does in Dubai. Despite being a large company with an extensive network, Allen stressed that size is not everything for dnata. With over 40,000 employees worldwide, Allen says: “Our vision is to be the world’s most admired air service provider is about saying we want our customers to admire us, we don’t necessarily want to be the biggest or the cheapest or the most geographically

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spread. We want admiration and that’s our product.” For cargo handling, dnata operates at 44 airports in 11 countries, handling three million tonnes annually and offering additional services including air-sea handling. Allen’s role oversees airport operations in Dubai at both Dubai International Airport and Dubai World Central. dnata has over 20,000 employees across both airports covering all service areas, handling over 212,000 flights a year by over 140 airlines, along with over 800,000 tonnes of cargo. Allen admits that world economic growth has slowed and Dubai faces increased competition from other airports and East-West train services from China bypassing the Middle East. The future of airfreight, in Allen’s opinion revolves around perishables, fast moving consumer goods and e-commerce, the products that need to move quickly. dnata has picked up CEIV certification, not just for pharmaceuticals but for perishables and live animals. Allen believes that dnata was not far off certification before it underwent the process adding it was useful for marketing, as dnata could reassure customers of the quality of service. He says: “The biggest worry, particularly in the Middle East when you’ve 50 degrees of heat is can you trust your airline and ground handler that they’re not going to be exposing your goods to high temperatures. This gives them another layer of trust.”

CAL adds second flight to Oslo

CAL Cargo Airlines has added a second weekly flight from Oslo, Norway to Tel Aviv, Israel starting on 1 March. The Friday departure adds 3,500 tonnes of seafood capacity from Oslo to Israel, with an estimated export value of over 200 million krone. Martin Langaas, director of cargo at airport operator Avinor says: “Israel is a significant importer of fresh Norwegian seafood, such as salmon, which requires short shelf life. It’s therefore essential that we can facilitate fast and efficient delivery from Norway to Israel in collaboration with CAL.” Offer Gilboa, chairman of CAL says: “CAL is pleased to launch the second weekly flight to Oslo and we are looking forward to offering even better connectivity to Israel with our new Friday departure from Norway. This will strengthen the existing relationship with the seafood industry.”

CHAMP joins innovation club

CHAMP Cargosystems has joined the Luxembourg Open Innovation Club (LOIC), coordinated by House of Startups – with the aim of sharing industry knowledge and expertise. Located at the House of Startups – powered by the Luxembourg Chamber of Commerce, the initiative is dedicated to the broadening of business relations between large accounts, intermediate-sized enterprises and innovative startups through open innovation. CHAMP says it sees this as a vital link, not only to the Luxembourg community but offering support and reaching out to vital innovators in the IT community.

Lucas Fernandez, head of innovation at CHAMP Cargosystems says: “It is crucial for established companies to be active in the startup community. CHAMP knows the value of nurturing new ideas. This relationship is a two-way street that can yield just as many benefits for both LOIC and CHAMP.” Emilie Bechet, corporate innovation manager at LOIC says: “CHAMP’s admission into the LOIC brings a level of knowledge and expertise of air cargo that will be most beneficial to our community. We are confident CHAMP will be a great asset in our mission to create a structure dedicated to exchanges and expertise on open innovation.”

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Gatwick to help local firms go global

atwick Airport and the UK’s Department of International Trade have launched a competition to help local businesses attend international trade shows to help them grow. SMEs based in Surrey, Sussex, Kent and Croydon can take part by explaining in 150 words how their business will develop by attending trade fairs through the Gatwick Trade Fairs webpage. Entrants have until midnight on 1 April to enter with winners being announced on 29 April, being judged by a joint committee from Gatwick and the Department of International Trade. Three winning businesses will receive £2,000 from Gatwick to cover costs to attend their chosen international trade exhibitions. Winners will also receive exposure to international industry leaders and government officials, receive briefings on local business practices and opportunities, and site visits to local facilities relevant to technologies and products. Liam Fox MP, international trade secretary and president of the board of trade, says: “Businesses of all sizes should remember that there is a world beyond Europe and there will be a time beyond Brexit. This competition, which we have launched with Gatwick

Ivie joins ACS board of directors

Airport, will help SMEs who may not have the time or resources to realise the opportunities of international expansion and exporting.” According to Oxford Economics, businesses in the Gatwick Diamond area are 50% more likely to export than those in other parts of the UK. The research also says that £7.5 billion of international goods passed through Gatwick in 2017, supporting 113,800 UK jobs.

ACWBITEs NEUTRAL Air Partners (NAP) has appointed Priority Freight group as its European partner. The move allows NAP to enhance its members’ access to time sensitive logistics solutions for the automotive market. Santiago Tejedo, general manager of Priority, expressed his delight at this new initiative. He said: “We are pleased to join forces with the professionals of the Neutral Air Partners group.” REACH Airports, a U.S.-based airport management joint venture between Munich Airport International and The Carlyle Group’s CAG Holdings, has named Ginger Evans as its CEO. Over the past three decades, she has served in leadership roles in government and private firms in the aviation and transportation industry THREE improvised explosive devices, one of which ignited and burst into flames were received at offices at Heathrow Airport, City Airport and Waterloo railway station in London on March 5. The bombs, which were sent in jiffy bags, all bore Irish postmarks and appeared to have been sent from addresses in Dublin.

Air Charter Service’s HR director, Katie Ivie has joined the charter broker’s board of directors. Ivie has held a number of human resources management roles over the past 20 years including seven years as HR director at Kelly Services. Prior to this, Ivie spent four and a half years as head of HR at Adecco, which followed on from holding the same position at one of their subsidiaries for four years. Chairman Chris Leach says that in the year and a half since Ivie joined, several offices have been opened and ACS has reached 500 employees. Leach says: “Katie has played a key role in helping to recruit and retain the best talent that we have, through effective training and reward programmes. In addition to this, she has introduced software efficiencies to our HR process, including online Learning Management Systems, which aim to create a global standard of knowledge, processes and, above all, the same service quality around the world.”

FML joins WACO System Freight Management (FML) has joined freight forwarder network, The WACO System, as member for Bangladesh. The company employs 117 staff in offices in the capital Dhaka, and the port city of Chittagong, providing road, air and ocean services across Bangladesh. FML was founded in 1996 and provides specialised Customs support for dangerous goods, refrigerated products and perishables. Richard Charles, executive director for The WACO System says: “FML has been operating for over 22 years, and we look forward to the local knowledge and expertise they will bring to the network.” Ghulam Muqtadeer (pictured), director of sales at FML says: “Our membership of WACO will give us the opportunity to extend our co-operation with independent freight and logistics operators across the world, for our inbound and outbound shipments, for both in air-freight, and sea-freight businesses.”

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IATA: Little prospect of re-bound unless protectionism diminishes

lobal airfreight has got off to a weak start in 2019, with freight tonne kilometres falling 1.8% in January, the International Air Transport Association (IATA) says. The fall was the worst performance in the last three years and comes as air cargo faces significant headwinds. Global economic activity and consumer confidence have weakened, while the Purchasing Managers Index for manufacturing and export orders has indicated falling global export orders since September 2018. Freight capacity measured in available freight tonne kilometres rose by 4% in January, the 11th month in a row that capacity growth has outstripped demand. Alexandre de Juniac, director general and CEO of IATA says: “Air cargo markets contracted in January. This is a worsening of a weakening trend that started in mid-2018. Unless protectionist measures and trade tensions diminish there is little prospect of a quick re-bound.” Only North America and Africa grew in January, with Latin America remaining flat while Asia-Pacific, Europe and the Middle East all contracted.

4.5% with seasonally-adjusted demand, which trended upwards for the past three months helped by stronger trade to and from Europe and Asia, has started to decline. Capacity increased 4.1%. Latin American demand was flat, but despite economic uncertainty in the region, a number of key markets are performing strongly. Freight traffic within South America and between Central and South America grew at double digit rates and demand between North and South America was also strong. Capacity decreased 0.7%. Demand in Africa was up 1% with capacity growing 8.2%. Seasonally-adjusted demand has trended upwards for six months. Seasonally-adjusted volumes are lower than the mid-2017 peak but still 35% higher than the most recent trough in late-2015.

Asia-Pacific airlines saw demand shrink by 3.6% due to weak manufacturing conditions for exporters, ongoing trade tensions and a slowing of the Chinese economy. Capacity increased 4.1% North America grew at the fastest rate for the 8th consecutive month, with demand increasing 3.3% due to the strength of the US economy and consumer spending. Capacity was up 5%. European airlines contracted by 3.1% with capacity up 2.8%. Exporters faced weaker manufacturing conditions and shorter supplier delivery times, particularly in Germany. Trade tensions and Brexit uncertainty also contributed to weaker demand. Middle Eastern airlines were down

Lufthansa Cargo adds summer connections across Asia, the Americas and Africa

Lufthansa Cargo will be adding freighter connections for the summer, putting the two new Boeing 777 Freighters into service. Capacity will increase 10% with increased flights across Asia, the Americas and Africa utilising Lufthansa Cargo and AeroLogic’s freighter capacity on the summer schedule starting on 31 March. In Asia, two flights a week will be added from Frankfurt to Tokyo Narita, with daily 777F services being complemented by MD-11Fs from Frankfurt to Tokyo via Novosibirsk on Wednesdays and Fridays, adding 170 tonnes of capacity. Osaka will be served by three MD-11F flights a week, and Seoul Incheon be connected on the outward leg from Frankfurt nine times a week. Hong Kong will receive daily MD-11F flights instead of six times a week, adding another 85 tonnes of freighter capacity a week. In India, there will be new connections to Mumbai, and services to Chennai and Ho Chi Minh City in Vietnam will be doubled, with an AeroLogic 777F travelling twice a week. North America will receive extra flights, with Atlanta services increasing from six flights a week to seven, and Chicago receiving 12 a week, up from eight. Central and South American services are being upgraded, with

a Lufthansa Cargo 777F being used on direct flights to Mexico City and on rotations from Frankfurt to Buenos Aires via Viracopos and Montevideo.

The 777F will also be used on Frankfurt to Viracopos via Curitiba service as well as the direct Frankfurt – Viracopos route, with a stop in Dakar, Senegal on the return route.

Swiss WorldCargo renews Edelweiss deal Cargolux bans lion bone shipments

Swiss WorldCargo has renewed its partnership with Edelweiss to continue marketing and selling freight capacity on the leisure airline. The two airlines have enjoyed a close partnership since 2009, with Edelweiss’ fleet and network growing to 70 destinations and 16 aircraft consisting of 10 Airbus A320s, two A330s and four A340s. Swiss WorldCargo will offer cargo capacity for Edelweiss on routes to Vancouver, Calgary, Cancun, San Jose, Tampa, Orlando, Punta Cana, Rio de Janeiro, San Diego, Havana and Buenos Aires for the Americas; Phuket, Colombo, Saigon, Ho Chi Minh City, Malé, Mauritius and Cape Town for Africa and Asia; and Larnaca, Gran Canaria,

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Pristina, Tenerife and Skopje for Europe. Ashwin Bhat (pictured left), head of Swiss WorldCargo says: “Our partnership with Edelweiss offers great opportunities for both us and our customers, as we are able to complement our already strong international network with additional routes in diverse markets.” Bernd Bauer (pictured right), CEO of Edelweiss says: “Swiss WorldCargo has been a strong partner for us over the last several years. As Edelweiss expands in both fleet size and destinations, we look forward to continuing to augment our network through their valuable support in managing cargo traffic on our routes.”

Cargolux Airlines International has banned the transport of lion bones to tackle poaching and breeding for trophy hunts. The cargo airline is among the first major carrier to ban these shipments, and though Cargolux has not yet been approached to handle such commodities, it says it is crucial to take the stance in order to raise awareness within the industry and promote ethical operations. Richard Forson, president and CEO of Cargolux says: “Cargolux is strongly committed to conservation and animal welfare, a cause that the company increasingly engages in wherever possible. Once we became aware of the emergence of this trade, the decision was immediately taken to ban the transport of such cargo throughout our network. It is highly important that all players in the transport industry recognise their respon-

sibility towards wildlife trafficking and take all applicable measures to eliminate this trade.” Michele Pickover, director of human and animal rights organisation EMS Foundation says: “This positive decision, will go some way in disrupting this abhorrent and cruel trade. It also sets a great example to all the other cargo airlines to take more ethical decisions when it comes to the international wildlife trade. Many airlines may be unaware of the trade itself or its implications for both African Lions and Asian Tigers.”

AEI picks STAECO as conversion centre Aeronautical Engineers (AEI) has selected Taikoo (Shandong) Aircraft Engineering Company (STAECO) as an Authorized Conversion Center. AEI has three Authorized Conversion Centers including Commercial Jet in Miami, Florida; Commercial Jet Services in Dothan, Alabama; and KF Aerospace in Kelowna, Canada. Robert Convey, senior vice president of

sales and marketing at AEI says: “As we gear up production for the B737-800SF program, we needed to expand our conversion line capacity. “STAECO is perfectly situated to serve the broader Asia-Pacific region and is an expert in narrowbody maintenance and modifications with vast experience performing cargo conversions.”

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RISK-BASED CARGO SCREENING: A RISK WORTH TAKING? By Harald Jentsch, head of baggage handling solutions, Smiths Detection THE global economy depends on the movement of goods, and brands rely on air cargo for one essential reason. Speed. It is the role of the air cargo fraternity to secure this transit of goods moving in and out of countries. Every year, over 328 billion letters and 7.4 billion postal parcels are sent from one part of the world to another via airmail. And that’s just one section of air freight. Air cargo also plays an essential role during natural disasters, famine and war by delivering aid and emergency supplies faster than any other mode of transport. It transports over 120,000 tonnes of Kenyan flowers each year, securing over 90,000 jobs. And if you’re reading this on a smart device, there’s a very high chance this electronic device was shipped via an airline. The air cargo industry is a vehicle for over US $6 trillion worth of goods, accounting for approximately 35% of world trade by value. In addition to creating millions of jobs, air cargo is a trade facilitator that contributes to the overall economic

development. It goes without saying that security is a critical element of the air cargo supply chain. How then, can the air freight industry increase throughput without compromising on security? The answer: Risk-based security measures as opposed to expensive security screening equipment. Here’s why: The rising numbers of terrorist attacks in recent years have increased the demand for tighter security. Regulators and air cargo companies have elevated requirements for screening equipment, which is an important commercial factor in a highly competitive environment. What’s more, a majority of air cargo companies face the Jentsch challenges of high throughput requirements in very short peak times – this is usually experienced towards the end of the year. The industry has recognised that investing in expensive equipment is not the answer, especially given the strong growth in the air cargo industry. Risk-based-screening, also known as ‘differenti-

IATA set up the Cargo Security Working Group (CSWG) to ensure that the experiences and constraints of the airline industry are considered in the development of effective security regulations. To support regulators and strengthen supply chain security, IATA and the industry are working on the following main initiatives:

Last mile on agenda at CCA xx

Pharma and Biosciences event

THE Cool Chain Association (CCA) is placing the spotlight on collaborative solutions for a final fix in the pharma chain with a focus on innovation and data sharing at its 7th Pharma and Biosciences Conference to be held in Paris, France, in September 2019. Drones, automation, and digitisation will also top the agenda at the two-day conference, which brings together decision makers from across the global pharma supply chain. “It takes 10,000 miles to reach the final one, and all too often that is when the cargo is compromised,” said Stavros Evangelakakis, head of global healthcare, Cargolux and chairman, Cool Chain Association. CCA is a non-profit organisation that aims to improve the quality, efficiency, and value of the temperature sensitive supply chain, in order to help reduce and prevent loss in the chain. The association holds two events a year, with one focussed on pharma and one on perishables. This year’s perishables event will discuss strategies for reducing food waste and will take place in Venlo, the Netherlands in May 2019.

ated screening’, was introduced to the passenger screening environment a couple of years ago as a measure to reduce screening efforts without making concessions on security. The method is gaining pace due to recent strides in innovation like biometric identification, and processing of big data making risk-based screening more viable.

Evaluate risk Facing similar challenges as passenger carriers, air cargo carriers are looking to adapt their approach to improve efficiency across their own supply chains. The air cargo industry can evaluate risk of a shipment by assessing country of origin/ destination, shipping contents, declaration of the contents, and security procedures of sub-shipping companies – already available information. The air cargo industry faces equally stringent regulatory requirements as passenger airlines; the price of ‘not doing it’ could entail significant investments in stand-alone security equipment. It’s also a big missed opportunity to incorporate existing data into the security strategy. In the past, risk-based screening was questioned due to the inability of combining shipment data with the shipment itself. With advanced screening technology and various applications of artificial intelligence, it’s now possible to consolidate information into a single command centre, eliminating the need for security operations man-

Advance Information The standard Advance Cargo Information ahead of the arrival of goods, aids processing and clearance of cargo. Standard CSD The Consignment Security Declaration (CSD) provides an audit trail of how, when and by whom cargo has been secured along the supply chain. Capacity Building

IATA announces Innovation Award finalists

FINALISTS of the 2019 IATA Air Cargo Innovation Awards, selected from 56 entries covering a wide range of areas including ULDs, digital solutions and track and trace that used cutting edge and emerging technologies such as block chain and big data to develop innovative solutions to benefit the industry, have been announced. The three companies were; • Air New Zealand Cargo and Cargo Composites – Keep it cool with aeroTHERM • SITA, Safran & CHAMP – Smart ULD • Unilode Aviation Solutions – Digital Transformation An independent jury, comprising of industry experts, academics and executives of leading logistics companies selected the finalists based upon their assessment of the ideas’ potential to become the basis of a viable new venture, its potential for value creation, and the likelihood of achieving success based upon the team’s plan and experience. The three finalists will present their submission at the 13th IATA World Cargo Symposium in Singapore at the closing plenary of the event on 14 March 2019.

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agers to access multiple independent bespoke systems to obtain the information they require. This gives air cargo forwarders complete control over their entire security operation from a single, integrated and secure platform while supporting real-time awareness and rapid decision-making. Risk-based screening can serve two general purposes: support high-volume, time-critical cargo shipments with significantly increased efficiency and speed and increase security outcome for shipments with potentially critical contents or sensitive origins and destinations. It will also come at a relatively low cost as the screening is done based on data already available to the air cargo industry.

Momentum With the concept of risk-based screening gaining momentum in the aviation sector, we are optimistic that is the most promising approach, at the moment, to protect society from the threat and illegal passage of explosives, prohibited weapons, contraband, toxic chemicals and narcotics. With technology bridging the gap, air cargo operators can now focus more on shipments that pose a higher risk and obtain efficiency in resource management as well as daily operations.

Through the Cargo Security Capacity Building Program, IATA works with regulators and industry to ensure air cargo is protected from unlawful interference across the whole supply chain. ACC3 Validation IATA supports air carriers in complying with EU ACC3 Validation process providing all the necessary information and assessment to prepare for their validation.

Fedex’s Chrystie is first chair of BiTA Standards Council DALE Chrystie of FedEx has been elected as the first chair of the Blockchain in Transport Alliance (BiTA) Standards Council (BiTAS), during the its February Board of Directors meeting. Chrystie, a Business Fellow and Blockchain Strategist at FedEx, has been a tireless advocate on behalf of BiTA since its founding in August 2017. He will continue to help navigate the organisation through its next major stages of development and growth. “It’s an honour to be elected to this position of first chair for the BiTA Standards Council, an alliance of 500+ members,” said Chrystie. “We can all appreciate the unique moment in time we are in to capitalise on this emerging technology, blockchain. To ensure we stay focused during the next two years we will aim to publish standards in the transport space and align those standards into the full supply chain and beyond. “There has been a great deal of work done to get us to this point, and I look forward to continuing our success in my role as chair.” Chrystie has been with FedEx since 2006.

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pharmaceuticals

IAG Cargo pharma centre opens in Madrid

AG Cargo has opened a pharmaceutical centre in Madrid dedicated to its Constant Climate product for transporting time and temperature-sensitive pharmaceutical products. Work on the facility began in June 2018, which features two dedicated temperature-controlled chambers totalling over 900m2. The Good Distribution Practice certified facility will allow IAG Cargo to increase the volumes of temperature sensitive pharmaceutical products passing through its Madrid hub, primarily serving the Latin American market, which is projected to increase 9% a year until 2028. The new centre is operated by an expert team, with shipments loaded onto dedicated airside docks and served by a specialist fleet of refrigerated trucks in order to protect the pharmaceuticals from the cargo terminal to loading

the aircraft. Camilo Garcia, director of sales, marketing and products at IAG Cargo says: “The opening of this new Constant Climate centre reflects our continued investment in our infrastructure and operations. Constant Climate was the first pharma-only product to the market and last year we shipped over 25,000 tonnes of life-saving medicines and vaccines. “Good Distribution Practice (GDP) is a critical focus for our Constant Climate product as it ensures delivery of medicine to the end-patient in a pure, potent and stable condition. All of our staff involved in the handling of Constant Climate shipments are GDP trained and the certification of the Madrid facility means that all three of our Constant Climate hubs – London, Dublin and Madrid – are GDP certified, driving quality across our network.”

Peli BioThermal brings Credo on Demand to Dublin

eli BioThermal is continuing to expand globally with the opening of a network station and service centre in Dublin, Ireland. The Dublin facility is focused on Peli BioThermal’s Credo on Demand programme, which provides flexible rental options for temperature controlled containers such as Credo Cargo, Credo Xtreme and Credo Cube. The Credo on Demand rental programme allows organisations to choose the shipper application that best fits their requirements, logistics profile and budget. The Dublin network station and service centre is located in Harristown, next to Dublin Airport and is well placed to serve the pharma industry in Ireland. Dublin is a key hub of manufacturing and distribution hub for the pharma industry and Ireland is home to some of the largest healthcare companies in the world including Lilly, Pfizer, Sanofi, Amgen, Allergan, Alexion, GlaxoSmithKline, Merck and Pramerica. Dominic Hyde (pictured), vice president of Credo on Demand says: “Dublin is a key logistics location hub and Ireland’s life sciences sector and bio-pharmaceutical industry is increasing

at a rapid rate. As we continue to expand our Credo on Demand rental programme, the Dublin network station and service centre puts customers in closer proximity to more convenient and flexible shipping options.” The Dublin facility is staffed by Peli BioThermal experts to replicate service levels provided at the growing number of network stations and service centres around the world.

Envirotainer says nihao to Shanghai Envirotainer has extended its RAP e2 network in Asia-Pacific by making Shanghai, China its 31st station on 1 March. The RAP e2 is designed for the pharmaceutical industry, and can load either five Euro pallets or four US pallets. It can maintain temperatures between 0-25C in nearly any ambient condition, and its insulation is designed in combination with electrical heating and cooling

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technology. Suat Toh, head of sales APAC says: “China is an emerging pharmaceutical manufacturing hub and the opening of the RAP e2 station in Shanghai boosts our ability to support our customers in the region with a secure and cost-efficient solution. We have conducted more than 25,000 real life pharmaceutical shipments with our RAP e2 so it is a truly proven and robust solution.”

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united arab emirates

Dubai remains a beacon of stability

ary Chapman is confident that dnata has a bright future as operations are moved away from the congested Dubai International Airport to Dubai World Central. Speaking to respectable members of the air cargo media, including Air Cargo Week, at the Emirates Group headquarters in Dubai on 21 February, the president of dnata, (pictured centre with journalists), expressed the view that

dnata will continue its strong growth as DWC, still quite a small airport, is developed into a major hub over the long term. He said: “We would like to see that growth happen. We have an operation out there that is a loss leader but we see that as our cost of doing business. I think it is in everyone’s interest to see that develop. It is a big investment out there.” Highlighting the long-term vision of Dubai, Chapman said: “The spend is going to be enor-

mous. It’s a 10-year programme. In parallel, you have the pressure on Dubai International that drove the decision for DWC. We’ve managed to find enough workarounds and improvements in infrastructure and processes and capability that in some ways has taken the pressure off DWC and the need to get DWC active.” He adds: “It’s ironic that our ability to squeeze more and more activity at DXB relieved the pressure on DWC.” Chapman is confident that dnata will grow with DWC and will support growth, saying the company is geared up to do what it has to do. The sea-air link is also helping business, making cargo and logistics more attractive with its road feeder system down to the port of Jebel Ali. Customers are happy, with Chapman saying: “If it doesn’t deliver what they need then they’re not going to use it and Dubai is very good at making sure that it can fulfil those expectations. The economic model has to work for everyone,

Success in UAE? Elementary, my dear Watson THE UAE provides UK-based GSSA HAE with a key base within the region with its global Network feed and de-feed plus opportunities to grow existing global relationships with forwarders and airlines, says Andy Watson, regional commercial director.. “We look to hire both local and expat staff who have been based in the region, bringing the knowledge and understanding of requirements and culture within the Middle East,” says Watson. GSSA will always be a cornerstone for HAE in UAE. “Representing four carriers with combined international services globally, we offer our customers a variety of main deck and

lower deck services throughout the ME/ISC/Africa/Europe/USA and Asia network ex UAE. “We are always looking at where would be the best area for expansion, not only for our region but for the group as whole. We evaluate each country on its on merits as to whether it’s easier to partner or look for acquisitions that fit the HAE Group. This continues today, and we are currently looking at both areas, partner and acquisition.” “In some ways our solutions business compliments our GSSA business perfectly. Our signature solutions business is very strong,

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if it doesn’t you can’t make it happen and Dubai is very good at making that happen.” Dubai’s long-term strategy has never changed, according to Chapman, who first came to the Middle East in 1977. He comments: “There has always been something going on that might make you question should I do this or that but if you took that approach you wouldn’t do anything.” It has been true to its strategy of looking to the future, whatever is happening, with Chapman describing it as a “beacon of stability”, which he says has been unusual in the region. Dubai has been very focused and driven, which is why Chapman says it has been so successful. Obviously there are bumps in the road, and sometimes you can’t prepare for it, but Chapman says you must be “agile” and “fleet of foot” to deal with it. “Overall you’ve got this growth plan where you may have a bump along the way but it’s still going one way.”

particularly in the UAE servicing ME region from origins globally,” he says. He considers that existing UAE-based carriers’ relationships (GSSA) and HAE’s own services have equal potential and in an area in which he is looking at growing significantly. Watson says: “Airlines are re-evaluating their “own sales” approach in the region to become leaner, and this, we believe, will lead to more GSSA, TCM (Total Cargo Management) and solutions opportunities.” Apart from the Dubai headquarters, which opened in 2007, the GSSA has a presence in SHJ and DWC. The company has 15 staff covering commercial, operations, customer service and financial matters.

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news focus

FTA holds first airfreight round-table discussion to discuss Aviation 2050

A conference on 27 February at the Crowne Plaza London, Heathrow looked at the UK government’s new aviation strategy in depth and considered how poorly airfreight came out of it.

ccording to Alex Veitch, head of multimodal policy, FTA (Freight Transport Association), (pictured) nearly half of the UK’s exports by value to nations outside the EU moved by air, it is vital that the government develops its air cargo infrastructure to support the nation’s new intercontinental trading relationships post-Brexit. There is still much work to do to ensure that the UK’s air industry is prepared to handle greater volumes of freight to and from countries outside the EU, as these new deals are forged. The UK government recently launched a consultation, Aviation 2050: The future of UK aviation, to address the challenges facing the sector over the coming decades to ensure its continued success to 2050 and beyond. Such is the growing importance that the FTA is placing on airfreight, this event, attended by some 25 invited attendees, was the association’s first-ever dedicated to the mode. The consultation provides the opportunity for operators to contribute thoughts and opinions. It is encouraging to see the UK government is listening to the logistics sector in the consultation and has included air cargo as an integral part of its strategic forward planning. Within the paper, the government recognises the importance of air cargo to the UK economy – not just in the value of goods moved but in the businesses these products support and allow to thrive – and acknowledges that the sector contributes more than £1.4 billion to the UK economy and provides 46,000 jobs.

Chatham House rule

The meeting was held under the Chatham House rule, a UK procedure that means when a meeting is held under it, participants can use the information received without identifying the speaker. There was a general mood during the half-day event that

freight had been down-played in the consultation. “There isn’t a lot of freight in the strategy,” said one participant. A participant described the government’s interest in airfreight as “underwhelming”, adding in more than 300,000 plus words, ‘freight’ is mentioned just 38 times. The government pledges to explore the ways the government and wider industry could facilitate growth in airfreight, for example, through making best use of existing capacity at airports and supporting the implementation of more digital documentation, such as e-airwaybills. Continuing to support and develop the third runway at Heathrow will also boost the sector’s growth.

Brexit rears its head

The other priority, as listed within the paper, is effectively dealing with the implications of Brexit; most notably, air services agreements. As stated in the paper, alternative arrangements will be required for air services to or from the 44 countries including EU member states, the US and Canada where our market access is via EU-negotiated agreements; these new arrangements have been identified by the government as a top post-Brexit priority. One participant observed that a study had shown some routes from the UK were only viable thanks to the cargo being carried in bellyholds. The topic of ground access to and from airports drew considerable discussion but one participant observed: “Never mind about capacity issues from road access. Air Traffic Control is operating in an environment that is so dated it is ‘pre-motorway’” in relation to modern capacity needs and issues in the sky. In the round-table discussions, participants considered three topics that will impact on UK airfreight movements and activities. The first was the issue of night-flights. These are generally between 23:00 and 07:00. This period already sees some 23%

We must talk about drones RECENT incidents at UK airports have forced conversations to be had about airspace management, writes Ben Marcus, co-founder and chairman, AirMap. Drones have the capacity to be a significant boost to the world’s economy. In the UK alone, for example, PwC predicts that the drone industry could add £42 billion to the UK economy within the next few years. For the cargo industry they offer significant promise - offering an innovative solution to its capacity crisis and vast environmental impact. However, many airports, Air Navigation Service Providers (ANSPs), Civil Aviation Authorities

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(CAAs) and governments around the world are not prepared to respond to drone incursions and are understandably worried that they could be affected by similar incidents to what happened at Gatwick Airport in December. If drones interrupted the cargo industry too, the bill for these disruptions could rise further leading to further losses in revenue and worldwide disruption in the supply chain. Airspace authorities should co-ordinate to establish clear regulations that require all drone operators to register themselves and their aircraft, along with a simple, streamlined process

of airfreight by volume and 47% by value. Will any future strategy see an increase in this? The FTA considers it would be a helpful outcome if the aviation strategy included a policy statement on night operations, supporting the Balanced Approach to Aviation Noise, as recommended by ICAO (International Civil Aviation Organization) and adopted into EU law and a commitment to consider development of guidelines and possibly other policy instruments to set a clear national framework for local discussions on night controls. A second topic was the potential for the UK’s smaller, regional airports to grow their freight traffic. Concentrating traffic on just a small number of major gateways means the industry is trying to “boil the ocean” said one particpant, a colourful reference to on an overly large and potentially impossible task given the reality of resources. The phrase implies a lack of connectivity to reality. Instead, the airfreight industry has scope to look at airfields like Manston Airport in Kent that better serve local manufacturing and distribution centres. The third issue could be the development of Free Trade Zones (FTZ) in the UK. One participant suggested as well as FTZs around airports, their owners could look to develop associated enterprise zones. Someone suggested that major gateways could also begin to work as connected nodals for cargo connectivity. FTA will continue to help the UK government develop a sustainable aviation strategy that sets out a new ambitious approach to a globally connected Britain; a successful, robust and growing air freight market is a vital component for the future success of UK PLC, considers Veitch.

for doing so. These bodies can also enforce civil aviation regulations with a UAS Traffic Management system (UTM). The right UTM system analyses operator details, flight path information, real-time air traffic positions, and more to enable airspace authorities to grant permission-based access to drone operators in a controlled airspace, either manually or programmatically as already implemented by the FAA LAANC programme. These measures will minimise any risk that may be incurred as a result of having drone operations as part of a business model, and can be vital in any response to incidents similar to those that befell Heathrow and Gatwick late last year.

In the context of the cargo and logistics industry, this means that companies using shipping services for their products and services can rest assured that the transportation of their assets will not be held up by rogue drones, and will also ensure that UAVs in use as part of their business models adhere to strict compliance rules. Much of the reaction to the Gatwick incident centred on Counter-UAS technology as the answer to illegal drone operations. There is a key role for counter-UAS systems in airport safety, but they are a last resort against criminals. Without the ability to identify good actors from bad ones, these counter systems will be constrained as drone operations scale.

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