Issuu

GLOBAL A

MANAGEMENT

WORLD ACW Digital is sponsored by AIRPORTS.COM FREIGHTERS.COM

FREIGH

FRE

Tabloid page bled.indd 1

05/03/2020 15:40

The weekly newspaper for air cargo professionals No. 1,080

11 May 2020

When James, Ashton and David met Audrey

Europa Air & Sea joins fight against COVID-19 EUROPA Air & Sea has responded to the increasing demand for PPE by creating a dedicated team to help in the fight against COVID-19. The new team at Europa is responsible for ensuring swift despatch to large scale medical equipment providers. These are suppliers to the NHS, contributing towards the UK national effort to help those on the frontline, while working closely with trusted partners at source including Turkey, Israel, China, Hong Kong and the USA. Angus Hind, director of Europa Air & Sea said: “The pandemic has brought a lot of added complexities to our division. The Seafreight team at Europa Air & Sea has encountered some difficulties and the market is seeing some shortages of equipment and space, particularly on the Far East to Europe trade lanes. However, as a division, we are concentrating on ensuring our continuation in service and that we remain open for business.”

Trade fair in the Americas set for November

Page 8

INSIDE AVIANCA FILLS 64-YEAR GAP

AVIANCA has flown a second aircraft from Colombia to China since an Avianca DC-4 made a stopover n this Asian country going to Sydney ... PAGE 2

AIR TRAVEL DEMAND AND CARGO

A WEEKLY staple in our house is bananas and most weeks buying bananas is uneventful. As the primary grocery shopper in my family, I typically ... PAGE 4 EMIRATES PULLS OUT THE STOPS

ransport logistic Americas is taking off. It will take place alongside the Air Cargo Forum of TIACA for the first time. On this platform, shippers, logistics service providers and logistics-related service providers will meet in Miami from November 10 to 12, 2020. Together with The International Air Cargo Association (TIACA), Messe München is setting an important signal for the global logistics industry. Exhibitors from around the world will meet on 6,700 sq m at the Miami Beach Convention Center in Florida. “The trade fair at the hub for North and South America is attracting a great deal of

EMIRATES SkyCargo has utilised the cargo capacity on its Boeing 777 freighter and Boeing 777-300ER passenger freighter aircraft to help maintain ... interest. Despite the current crisis, requests are constantly coming from the USA, North and South America, and we are currently putting together a high-profile conference program with our partners,” Gerhard Gerritzen, member of the Executive Board of Messe München, stated. More than 70 exhibition booths are permanently booked a good six months before the start of the trade fair. International airlines and airports as well as airfreight-specific system providers and service providers are among the exhibitors signed up for the established Air Cargo Forum.

PAGE 5

COVID-19 ERASES 7.5% FROM MARKET

THE impact of Covid-19 has amplified pre-existing troubles in freight forwarding. The latest research by Transport Intelligence (Ti) ... PAGE 7

aircargoweek.com

Bolloré Logistics to cut over 11,500 tonnes of CO2

IN partnership with Total Solar Distributed Generation, Bolloré Logistics lowers its carbon footprint with the solarisation of its first building – Green Hub in Singapore. Total Solar Distributed Generation (DG) has completed a solar rooftop for Bolloré Logistics’ Green Hub in Pioneer Turn, Singapore. With a capacity of nearly 1MW, the system generates an estimated 1.3GWh of electricity per year. Over the lifetime of the solar rooftop, Bolloré Logistics will avoid over 11,500 tonnes of CO2 emissions. With over 2,400 panels, the solar PV system is expected to cover 30% of the building’s power needs. Adhering to the Paris Agreement, Bolloré Logistics is committed to reducing 43% of its greenhouse gas emissions by 2027, through its CSR programme ‘Powering Sustainable Logistics’. “Total Solar DG is committed to helping its customers drive down their carbon footprint. We are proud to pursue Total’s long-term partnership with Bolloré Logistics by allowing the decarbonisation of the company’s facilities,” said Gavin Adda, CEO of Total Solar Distributed Generation for Southeast Asia.

Alaska Air Cargo begins testing pax aircraft to fly critical cargo ALASKA Air Cargo will fly passenger jets as cargo-only flights to carry essential goods like medical equipment, e-commerce packages and food throughout its domestic network. Filling the passenger cabin with cargo will backfill the loss in capacity across the continental United States and Hawaii after passenger flights were reduced. “We’re determined to help protect the resiliency of our nation’s supply chain by connecting critical cargo quickly to the communities we serve in this public health crisis,” said Torque Zubeck,

managing director of Alaska Air Cargo. “Our teams have been working tirelessly since March to identify the safest and most effective processes to increase our cargo capacity as quickly as possible.” In addition to air cargo’s dedicated three freighters, six Boeing 737-900 aircraft will be utilised as cargo-only aircraft. Boxes, mail and other items will be placed on and under seats, in overhead bins and in closets – to offer 13,500 more pounds of cargo than what a passenger-only flight could carry.

First-ever virtual meeting open to all freight forwarders IN November, the Pangea Group will hold its ninth Freightcamp as a virtual-only event open to all the freight forwarding community. The core of the event are the 3,000 live online 1-2-1 meetings scheduled among participants. The programme is complemented with panel discussions, workshops and worldwide webinars. “Unprecedented times lead to unprecedented decisions. We hope the world is a much safer place much earlier than November, but it is very very unlikely that in-person events like ours can be arranged this year. Anticipating our decision has allowed us to plan ahead and to prepare this virtual alternative. “Freight forwarders cannot go without the get together, the one to ones, the chatting and seeing each other so we are offering a Virtual Freightcamp for everyone, focused on maintaining the 1-2-1 meetings that year after year have brought great business success,” comments Sarah Bidmead, network manager at the Pangea Group.

cargo-partner launches Mumbai pharma and healthcare centre ON April 30, cargo-partner opened its GDP-compliant Competence Centre for Pharmaceuticals & Healthcare in India. This is the company’s third competence centre for pharmaceuticals and healthcare products, following Vienna and Hamburg. A 24/7 service desk ensures fast responses for all pharma-related shipments to and from India. cargo-partner has established a new hub to provide its customers with GDP-compliant services in warehousing, national and regional trucking as well as international air and seafreight. To ensure fast and reliable service for urgent pharmaceutical and healthcare transports, cargo-partner in India recently introduced

a 24/7 service desk which promises a response within 29 minutes as well as a full quotation within two hours. Rajiv Singh, managing director of cargo-partner in India, said: “With our new centre in Mumbai, we can ensure full GDP compliance, end-to-end product integrity and professional handling at every step. “We have put together a dedicated team of well-trained staff from our air, sea, road transport and quality management departments who can support our customers with indepth industry expertise. “Our processes are based on many years of experience, making use of detailed risk and deviation management procedures to achieve maximum security and efficiency.”

Avianca flies between Colombia and China after 64-year gap

AVIANCA has flown a second aircraft from Colombia to China since an Avianca DC-4 made a stopover in this Asian country going to Sydney for the 1956 Olympics. In 2020, Avianca carried out a flight between Colombia and China, to move 28 tonnes of general cargo and medical supplies. The flight departed from Bogotá, stopping in Los Angeles and Tokyo before landing in Shanghai, where it arrived on April 29 and returned to

WFS supports Maersk Bridge operation in Copenhagen DENMARK’S efforts to control the spread of coronavirus have been significantly aided by the rapid supply of medical equipment from around the world, with Worldwide Flight Services’ (WFS) cargo handling team in Copenhagen helping to move PPE to front-line doctors and nurses as quickly as possible. Already, WFS has handled some 350 tonnes of medical cargoes onboard 15 flights, both freighter charters and cargo-only passenger flights. Cargo imports from China have arrived on flights operated by airlines including Singapore Airlines, Etihad Airways and Star Air. A high

ACW 11 MAY 2020

aircargoweek.com

number of flights into Denmark are part of the Maersk Bridge operation initiated and co-ordinated by A.P. Moller Holding with support from A.P. Moller – Maersk sourcing the PPE in China, and Damco transporting it in Denmark. Jimi Daniel Hansen, general manager of WFS – Copenhagen, said: ”We are ready to provide all of the support necessary to ensure the cargo on these special flights reaches medical professionals in Denmark quickly and supports their outstanding work helping patients recovering from the coronavirus. We are especially proud to be helping the fantastic Maersk Bridge operation.

Colombia on Saturday, May 2. This operation will be carried out regularly, operating three times a week. Juan Esteban Kappaz, flight operations director at Avianca Holdings, said: “Our wings are still open to perform these special operations. “The flight between Colombia and China not only marks a milestone in our history but also makes all of us who are part of the Avianca family very proud.”

EMIRATES SkyCargo has launched four weekly cargo services to New Zealand. The carrier is working with the Government of New Zealand as part of its International Airfreight Capacity (IAFC) scheme to help facilitate the exports of key commodities from New Zealand to the rest of the world.

Deliveries start from UN’s THE UN World Food Programme (WFP) has kick-started a network of global logistics hubs that will support the entire aid community and ensure the delivery of vital medical and humanitarian supplies to developing countries while commercial air transport is at a virtual standstill. “The window of opportunity to surge medical and humanitarian equipment into Africa to curb the pandemic is closing fast,” said Amer Daoudi, WFP’s COVID-19 response director. “Our global logistics support system is up-and-running, and this delivery marks the first of many cargo shipments we will fly to all corners of the globe,” he added. A WFP-contracted Boeing 757 cargo flight departed the new-

new Belgian cargo hub and China, will link to regional hubs in Ethiopia, Ghana, Malaysia, Panama, Dubai and South Africa, where smaller aircraft will be on standby to move cargo and personnel into priority countries. The network builds on pre-existing UN Humanitarian Response Depots (UNHRD) - including Brindisi in Italy. WFP expects to transport the equivalent of 37 Boeing 747 planeloads over the next six weeks from China and Malaysia to 130 countries around the world. Once the service is fully up and running, as many as 350 cargo and another 350 passenger flights could fly every month. While this flight is the first from the new hub in Liège, WFP has dispatched more than 300 tonnes of

ly-established Global Humanitarian Response Hub in Liège, Belgium, carrying almost 16 tonnes of medical cargo and personal protective equipment like masks and gloves on behalf of UNICEF and the International Committee of the Red Cross (ICRC) destined for Burkina Faso and Ghana. Some of this cargo will then be moved to its final destination in the Republic of Congo. WFP is setting up the logistics backbone for global COVID-19 efforts, rolling out a global hub-andspokes system to dispatch medical and humanitarian cargo and transport health workers to the front lines of the pandemic. These hubs, located close to where medical supplies are manufactured in Liège, Dubai

humanitarian and medical cargo to 89 countries since late January. These shipments include masks, gloves and testing kits. Aid agencies and health authorities have been struggling to get supplies to fragile settings. They are hindered by the breakdown of global supply chains, the collapse of commercial air travel, border closures, and disruptions to shipping. “To put it simply – without our logistics support, the response to COVID-19 in the world’s most fragile settings would stutter to a halt, leaving millions at risk,” he added. WFP appealed for an initial $350 million to kick-start global common logistics services, a call echoed by humanitarian partners in April.

AFTER three days of intensive work at Sao Paulo’s Maintenance Center, LATAM Group announced the first Boeing 777-300ER re-configuration. This aircraft’s economy cabin had passenger seats temporarily removed to increase its cargo transportation capacity by 20%. This transformation is part of the company’s current strategy, which aims to mitigate the effects of belly capacity restrictions: to maximise its assets’ capacity and optimise its resources by utilising passenger aircraft exclusively for cargo transportation. This way, LATAM Cargo Group will be able to increase its cargo capacity and satisfy Latin America’s current transportation needs. Due to its suitability for long haul routes, LATAM Cargo Group decided to modify this aircraft to achieve its new challenge: to temporarily fly to Asia in order to collect medical supplies for Latin America.

Ethiopian brings convenience to cargo customers through digitised service ETHIOPIAN Airlines has introduced a mobile app and chatbot-assisted cargo shipment tracking service. The app, now available for both Android and iOS, brings “convenience to Ethiopian Cargo & Logistics Services customers through a range of self-service features including checking flight schedule, tracking and charter requests at the swipe of a finger,” said the airline. The chatbot enables customers to access up-to-date information and track their shipment on Messenger and Telegram.

“As a customer-centric airline, we always seek ways to better serve our customers and bring more digital options to their fingertips,” says Miretab Teklaye, director group integrated marketing communications at Ethiopian Airlines. “As the number of mobile apps and messaging platforms users grows globally, we will leverage our in-house digital capabilities by taking our digital service to the platforms of their choice.” Users can download Ethiopian cargo mobile app from Play Store and App.

Air Partner’s very strong Q1 despite challenging aviation market GLOBAL aviation services group Air Partner has issued a third COVID-19 update, confirming a very strong start to FY21. The unaudited accounts for Q1 show expected underlying pre-tax profit of £6 million. Prior to withdrawing its forecasts, the compnay had forecasted full year pre-tax profits of £6.5m. “Against a challenging market backdrop, this is an excellent result and is testament to the group’s strategy to diversify its exposure across the aviation chartering industry,” said a company spokesperson. April was a record month, predominantly driven by unusually high levels of activity in freight and group charter. The forward order book is encouraging for May and June, supported by demand for freight and group charter services. Visibility beyond this is currently limited. Accordingly, management is controlling costs tightly in order to preserve cash. At the end of April, the Group had underlying cash in the bank of £13m.

aircargoweek.com

ACW 11 MAY 2020

Keith Nehring, senior product development manager at C.H. Robinson

weekly staple in our house is bananas and most weeks buying bananas is uneventful. As the primary grocery shopper in my family, I typically look for bananas transitioning from green to yellow. Maybe they won’t taste great today, but within a day they should be ready to eat and we’ll have most of the week before the brown spots start to form. Occasionally I will be forced to choose between bananas that are either too green or too ripe. I know the ripe bananas may only take a day or two to develop those dreaded brown spots – making them inedible for my young children – but I tend to choose those over the bananas I consider too green. This is a pretty good comparison for how it feels to give airfreight market updates lately. Providing these updates is one of my responsibilities at C.H. Robinson and normally a straightforward task. Over the past few months, however, I feel like I’m buying a banana that is too ripe. In the days following a new market update that I’ve created, I’m looking for brown spots. With that in mind, let us examine

ACW 11 MAY 2020

Air travel demand and the cargo impact some of the mid to long-term impacts of COVID-19 on the airfreight market. Many shippers and forwarders are wondering when we might return to a “normal” market condition and there are many factors that will come in to play. One of the most significant is demand for travel.

Capacity impact As demand for air travel steadily increased over the years, airlines responded with more passenger aircraft to support this demand. This additional equipment increased cargo capacity, even in years where demand for air cargo did not in-

crease at a corresponding level. With cargo capacity (supply) increasing faster than demand, many airlines operating both passenger and freighter aircraft reconsidered their need for freighters. Some airlines got out of the freighter aircraft market altogether, while others chose to let ageing cargo aircraft retire without replacing them. When demand for passenger travel plummeted in the wake of the COVID-19 pandemic, a dramatic reduction in cargo capacity followed. As more countries issued various “stay-at-home” measures, air cargo demand fell, but not to the same level as capacity. This has resulted

in congestion and increased rates globally with some lanes more affected than others. Compared to 2019, we can expect decreased demand for airfreight indefinitely. Air rates have accordingly increased around the world. As social distancing measures ease globally, demand for all modes of cargo transportation should increase from the current low levels. At what point will capacity catch up with demand?

Airline strategy As previously mentioned, many airlines have shifted their focus to-

wards passengers in recent years. It seems very likely, at least for the remainder of this year, that focus will change. We have seen the efforts of passenger airlines to use a portion of their fleet for cargo alone. Air Canada may be the most aggressive in this strategy, going so far as to remove the seats from some aircraft to load cargo on the passenger deck. This initiative and additional capacity is welcome and appreciated during this taxing time. Even when seats are removed or cartons are being loaded in the seats, they are loaded and unloaded by hand through the passenger entry door. Because of this the capacity available will only be accessible for certain types of cargo and take more time. These inefficiencies add to the cost of operations and ultimately need to be passed through to the shippers.

Final thoughts The International Air Transportation Association (IATA) recently projected that roughly 50% of the decline in passenger demand for international travel will recover by Q4 2020. Without the belly capacity supported by high yield passengers, the airfreight market appears unlikely to return to “normal” anytime soon and it is clear the airfreight landscape has changed for the foreseeable future.

MIDDLE EAST

DXB moves to support cargo operations during pandemic DUBAI International (DXB) moved quickly to facilitate an increase in the number of cargo operations to increase the volume of perishables and pharmaceuticals as its cargo and logistics operations worked with freight operators and service partners to maintain Dubai’s supply chains during challenging times. During March 2020, the volume of fruit and vegetables handled at DXB increased by 88.5% (18,164 tonnes) year-on-year, while the volume of pharmaceuticals also increased by 49.4% (12,500 tonnes) driven mainly by increased global demand for medical supplies and equipment as a result of the Covid-19 outbreak. The volume of meat products also grew by 17.8% to 8,050 tonnes during the month. Paul Griffiths, CEO of Dubai Airports said: “We have moved quickly to facilitate the replacement of cargo capacity that is normally provided in the underfloor cargo holds of passenger air-

craft by accommodating a number of dedicated cargo flights to keep the supply of food, supplies and equipment flowing into the UAE during the current unprecedented global crisis.” Airlines moved quickly to mobilise cargo flights between DXB and other cities all over the world. On April 1, Emirates SkyCargo moved their cargo operations on a temporary basis from Dubai World Central (DWC) to commence operations of its 11-strong B777 freighter aircraft at DXB. Emirates have supplemented the SkyCargo fleet by adding several Boeing 777 passenger aircraft from its fleet to increase the amount of cargo uplift available. A total of 12 carriers are currently operating an average of 110 daily cargo flights at DXB. As part of its efforts to ensure public health, DXB is taking stringent measures to ensure the intensive sanitisation of the cargo and the freight facilities.

PHARMA.AERO has revealed two new full members in its air pharma network: Etihad Cargo and Air India SATS. Etihad Cargo, the cargo and logistics arm of Etihad Airways, has positioned itself as the first Middle East airline to hold both of IATA’s CEIV Fresh and CEIV Pharma certifications, and one of the two carriers globally to claim this dual honour. Andre Blech, head of cargo operations and

their network is a key milestone for AISATS as we pursue industry collaboration to aid our long-term goal of building a pharma corridor in India. As an industry leader in air cargo, we are committed to driving strategic growth, overcome new challenges, and support our industry to achieve excellence in reliable end-to-end air transportation for pharma shippers,” said Ravinder Bolangdy, head cargo, AISATS.

Emirates SkyCargo pulls out all stops to maintain UAE food supplies EMIRATES SkyCargo has utilised the cargo capacity on its Boeing 777 freighter and Boeing 777-300ER passenger freighter aircraft to help maintain and replenish food supplies in the UAE during the Covid-19 pandemic. The air cargo carrier has imported more than 34,000 tonnes of food into the country between January and April 2020, out of which 13,000 tonnes were imported between March and April. In the month of April alone, Emirates SkyCargo brought food supplies into the UAE from over 35 countries around the world. In the UK, London Heathrow airport has been receiving seven flights per week, including both passenger freighter and full freighter flights. Since May 1, the frequency of flights has been increased to ten flights a week. Over 1,550 tonnes of food was imported into the UAE from UK between January and April 2020. On imports, Emirates SkyCargo flights have been transporting essential supplies includ-

ing fruit and vegetables, hand sanitisers and other commodities into London Heathrow. “Despite the severe reduction in the number of flights we operate and the resultant reduction in the amount of cargo capacity we can work with, we have given top importance to maintain food supplies in the UAE as we consider this our responsibility. Through our regular cargo flights from major food production markets such as Australia, Egypt, India, Kenya, Pakistan and many other nations, we have been able to import quality food items. “This has helped keep store shelves in the UAE well stocked with the familiar and comfort food items that puts a smile on people’s faces. “We are also thankful to the support from the various UAE authorities who have helped facilitate these imports during such critical times,” said Nabil Sultan, Emirates divisional senior vice president, Cargo.

Etihad Cargo and Air India SATS join Pharma. Aero

Hariri: Cargo operations will continue on humanitarian and commercial basis to safe destinations

S delivery at Etihad Aviation Group, said: “Our membership of Pharma.Aero is a testament to the progress Etihad Cargo has made over the past 18 months as we continue to drive forward our ambition to provide reliable endto-end air transportation for perishable and pharmaceutical shippers.” Air India SATS, being a joint venture between Air India Limited and SATS Limited, was formed with the vision to provide worldclass airport services in ground and cargo handling solutions to its customer airlines. “We are delighted to be a part of the Pharma.Aero ecosystem. To be included in

Nathan De Valck, chairman of Pharma.Aero confirmed: “We welcome Etihad Cargo and AISATS into the Pharma.Aero community and look forward to their active contribution in our project groups to further improve air pharma handling processes in collaboration with the pharmaceutical manufacturers. “As the first Middle East carrier to join Pharma.Aero, Etihad Cargo marks the expansion of our global membership into that region. “Air India SATS will further strengthen the very active Indian community within the Pharma.Aero network.”

audi Airlines Cargo Company has taken proactive steps to ensure the continuity of all cargo and supply operations and the arrival of necessary goods and products including medical equipment, medicine and foodstuffs, said CEO Omar bin Talal Hariri. The steps come in line with the official decisions, which excluded all cargo operations from suspension imposed on other business activities as part of the precautionary measures the Kingdom has taken to prevent a Coronavirus outbreak. “We have high-level coordination with all related parties as per the recommended precautionary measures the Saudi health authorities have taken, which permitted the cargo operations and the flow of goods to run uninterrupted,” Hariri explained.

Mitigate the spread

All cargo flights to Europe will continue through Frankfurt and Liège stations in addi-

aircargoweek.com

tion to Dhaka station. Work at these stations is run as scheduled in order to mitigate the impact of the imposed suspension aiming to prevent the spread of Coronavirus. The decision suspending passenger flights as a preventive measure has made the Saudia Cargo operate a number of additional cargo flights to Dubai and other destinations because all cargo operations on passenger aircraft came to a complete halt. “The Saudia Cargo staff work around the clock as part of the company’s national responsibility and regional role in enhancing logistics during these circumstances which the whole world is going through,” he said. The Saudia Cargo, he stressed, always acts based on the official decisions, instructions and directives so that it can ensure an alignment between meeting the humanitarian needs and protecting the public safety. Cargo flights will continue to operate on humanitarian and commercial basis and cover certain key commercial and safe ports and cargo stations around the world.

ACW 11 MAY 2020

AMS SPECIAL

Flower traffic wilts in the face of COVID-19

A perspective from Royal FloraHolland - Eline van den Berg, programme manager Holland Flower Alliance ACW: The coronavirus has a very heavy impact on the flower sector and Royal FloraHolland (RFH) members. Since mid-March we have seen an enormous loss of demand in our most important sales countries in Western Europe. These countries went into lockdown or took other measures to try to control the virus. Some countries such as Spain and Italy completely closed their borders. Because of this, we saw the clock passing the auction big time and RFH has therefore decided to regulate supply to stabilise the market and price. This has worked and we have upped the supply measures again. We hope to be back at our old levels soon. Because flowers are regarded as non-essential goods, a lot of florists in many countries needed to close shop. In supermarkets and some garden centres, flowers and plants could/can still be sold. Moreover, on a more positive note, we saw an upsurge in online sales of flowers and we see new initiatives such as ‘the drive-in florist’.

RFH has also taken measures in their operations and we have tried to help the buyers who normally buy live from the tribune next the clock to do their sales as much as possible from home (remote buying).

ACW: How has it impacted far away markets and flowers that are imported to Amsterdam? Because the huge passing of the clock and the regulated supply mid-March, many growers in Africa (Kenya, Ethiopia) have temporarily fully or partly stopped their supply to RFH. By the end of March, they have taken small steps to increase supply again. At the moment there’s a big shortage of airfreight capacity. Because of the sudden lack of demand, carriers cancelled their flights at the beginning of March. Now we see airlines trying to increase capacity as soon as possible. From Kenya there’s currently 30-40% of normal freight capacity available, but the costs are 3-4 times higher than pre-corona. Furthermore, a lockdown in several African countries, such as Kenya, South Africa, Tanzania and Uganda, have cancelled passenger flights. Also, in Kenya there’s a curfew from 19:00 until 05:00 which makes it difficult for operational activities at the airport. These measures also have a great impact on employment, and due to the lack of demand some 30.000 employees from several flower farms have been laid off.

ACW: How is RFH handling these challenges? As a co-operative, we have become successful by co-operating, so especially now it’s important to stay strong by working together. Employee safety is our primary concern and we adhere to all the measures set up by the Dutch Government to protect the RFH employees as best as we can. Together with our members we have agreed to continue the implementation of our strategy with ‘Auctioning by country’ and ‘100% digital’ as main pillars. Moreover, these times ask for full focus on costs, and unfortunately, we had to say goodbye to many external colleagues. With a daily update we try to inform our members about the latest market developments.

ACW: How do you think recovery will be? This is completely dependent on how the post-Corona times will look like and how demand will recuperate. We hope that the government help and funds will be enough to help our members compensate for their losses and that they can continue their activities.

Comments from Roos Bakker – director cargo development at Amsterdam Airport Schiphol

ACW 11 MAY 2020

aircargoweek.com

ACW: What is happening now with flower imports? When you look at the auction supply, we have seen a breakdown of the supply in the middle of March because a loss of demand. As a result of this growers stopped shipping their flowers to the Netherlands. Since the end of March, beginning of April the flower market stabilised and growers from Ethiopia and Kenya started shipping flowers again although in smaller amount due to regulation by the flower auction. Nowadays the market is recovering bit by bit because countries are opening their flower shops and gardening centres. The supply from Ethiopia is recovering to normal, but due to a shortage of airfreight capacity of 70% in Kenya the supply of Kenyan flowers is still lagging behind.

ACW: How does Schiphol support the perishables sector? First of all, Schiphol is currently accommodating all freighter flights, and we see a lot of pharmaceutical cargo coming in. The perishables sector is under pressure as there is a big lack of air freight capacity to Nairobi, because airlines can make three times as much money flying to Asia at the moment. The tariffs are now as such that it’s better to fly half empty from Asia than fully loaded from Africa. This leaves Kenya with an enormous surplus of flowers that can’t be exported. Especially now around Mother’s Day is always a big peak in flower exports from Africa. It’s a very sad situation for the growers and their employees on the flower farms, and we’ve heard that many people have been laid off. All initiatives with the Holland Flower Alliance have also been put on hold for the moment, and I look forward to the moment we can start picking it up again.

NEWS TRADEFINDER

Ti: COVID-19 set to erase up to 7.5% from global freight forwarding market

Freight Forwarders Hong Kong

Freight Forwarders USA

he impact of Covid-19 has amplified pre-existing troubles in freight forwarding. The latest research by Transport Intelligence (Ti) reveals the global freight forwarding market could contract by 7.5% in 2020 as a result of the crisis. With the global market having limped to a contraction of 1.7% in 2019, Ti now projects a second consecutive year of negative growth. Ti’s analysis of the impact COVID-19 has so far had on the global forwarding market indicates an extremely challenging year ahead for forwarders. In particular the projections will make for tough reading for those exposed to the air forwarding market already struggling amid strong headwinds from the US-China trade war, falling production in key verticals such as automotive, and a wider economic slowdown. The new research shows that, in a best-case scenario, the impact of COVID-19 will drain 2.0% from global market value. Ti’s proprietary forecasting shows the slowdown will be broad-based and relies on the easing of social and economic restrictions in the second half of the year to reinvigorate activity on both the supply and demand sides. If the public health crisis endures, however, and the lockdown measures seen across much of the world so far in 2020 remain, the fall in market value will be much steeper at 7.5%. Such a worstcase scenario would impact regional and country markets hard – under these circumstances, the US market is projected to contract by 10.8%, for example. “2020 looks all but guaranteed to be a painful year for forwarders and the numbers here make

for some grim reading. “There are reasons for hope, however, with signs that Asian markets are emerging from the crisis and increasing momentum in Europe and North America behind an easing of restrictions, at least in certain sectors of the economy. The obvious hope is that this continues and that we’ll see a bounce in activity and volumes in the second half of the year,” said Michael Clover, Ti’s head of commercial development.

Uncertainty remains Ti’s Global Freight Forwarding Market Sizing: COVID-19 Impact Analysis also reveals best- and worst-case scenarios for growth in the air and sea markets. Under the best-case scenario, contractions of 2.8% and 1.1% are projected for air and sea freight respectively. The downside could be more than 7.0% in both under worst-case conditions. “Over the medium- and long-term, a great deal of uncertainty remains and COVID-19 has raised important questions for the future of both the air and sea markets – has the air freight market become too reliant on belly-hold capacity in passenger transportation, and what might it do to reduce that exposure? “Will region-based production and consumption undermine demand for globalised container shipping supply chains? We’re already seeing signs of change in the structure of the forwarding market that point to profound upheaval in the years ahead,” commented Nick Bailey, head of research at Ti.

aircargoweek.com 07_11 May 2020.indd 1

azfreight.com Premium Listings

ACW 11 May 2020

7 04/05/2020 16:41

Cargo and Other Stories by Lemon Queen

Cargo in the blood Audrey Serdjebi, founder & CEO, Lemon Queen

he crisis has been devastating, but there are also rays of light. This column showcases the talents who make our industry what it is day after day. In today’s world, where lockdown means isolation for many, I needed to feel some solidarity and team spirit. And that’s exactly what drives these three talented Americans. Ashton Parks is a senior analyst, Cargo Sales Development, and describes herself as “a data person, constantly thinking, calculating, and looking for opportunities for improvement.” James Ryu is a manager, Cargo Control Center. A sports fan, he’s also an Atlanta native, and so, he says: “I’ve grown up flying Delta my whole life.” Finally, David Bodary is cargo station manager in Chicago, and he believes in diversity: “When you build a diverse team that has various experiences and skills it makes for a well-rounded and more versatile business.” Welcome to Delta. The airline has been working all hours since 16 March implementing Cargo Charters. Since then, it has operated over 140 flights between Dublin and Atlanta, Los Angeles and Sydney, and Chicago and Frankfurt, among others. And since China resumed business, Delta has been operating flights between the People’s Republic and the New World. Ashton, James and David are driven by this desire to contribute to a vital and life-saving human chain. The airline must be proud of the commitment they show every day. They truly are brilliant, and they chose our industry because it gave them a genuine mission: maintaining links. For James, “cargo is more than just moving freight or packages. Cargo is about connecting people with the things that bring meaning”. Similarly, Ashton sees cargo as “a piece of the global market that connects each of us”. And because by working for our industry, “we are moving things that add value to everyday life,” as David puts it, their involvement in combating this crisis is undeniable. They all decided to leave no stone unturned in the fight against COVID-19. Demonstrating extraordinary resilience, they have managed to meet the essential needs not only of clients but more wider, people the world over. Ashton jumped at the chance to add a new string to her bow as an analyst: “Delta launched Cargo Charter operations to assist with international supply chain systems in need. I joined the team as a support for leads and customer requests”. And so did David in Chicago: “With the many challenges we are facing at this time you must think differently, solve problems and innovate in order to

keep moving forward”. And at the head of the Cargo Control Center – a one-of-a-kind team that’s in direct contact with airports and warehouses – James is also on the front line: “The Cargo Control Centre is a 24/7 operational coordination team comprised of several key support groups who monitor critical shipments, prepare cargo flight plans, leverage data to analyze operational process compliance and act as a central point of contact for issue escalation”. Faced with this unprecedented crisis, “each charter flight that departs requires individualised flight planning and co-ordination with Delta’s Load Control Centre due to the balance complexities involved with loading freight on passenger aircraft with no passengers on board.” Beyond their absolutely crucial technical expertise, the three professionals all say unity is a central element in any success. They constantly reiterated how this strong value – one the airline has always emphasized – would now ensure collective success, both within the airline itself and for the world’s citizens. As David said: “I am incredibly proud of my team as we have taken on a large workload in order to make the charter operation a success in Chicago. We were able to adapt very quickly and turn our operation from a domestic narrow-body station to an international wide-body hub in a week.”

Aiding and improving Unity and flexibility are guarantees of the future of our industry. And as Ashton said: “I foresee airlines being a prominent leader in same-day shipping, while constantly aiding and improving global supply chain systems.” David thinks we will emerge “stronger” from this crisis: “Yes, there is a long road ahead to financial recovery, but our skills, ways of thinking and collaboration will all improve our business and way of life.” James concluded our interview with words that really resonated with me: “My greatest pride has been seeing the people of both Delta and Delta Cargo rising to meet unprecedented challenges. Their continued positivity and “can do” attitude keep the company going by leveraging Delta’s strengths of operational reliability combined with an increased focus on innovation”. Fighting side by side today for the sake of tomorrow. This crisis may be wreaking havoc, but it is also enabling entire airlines to stand together in the face of adversity. It seems that Delta’s motto – “No One Better Connects the World” – couldn’t be more appropriate.

“a data person, constantly thinking” Ashton Parks

“I’ve grown up flying Delta my whole life.” James Ryu

“We are moving things that add value to everyday life ” David Bodary

Lemon Queen is an airfreight industry public relations and communications agency in Paris, France

aircargoweek.com