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The weekly newspaper for air cargo professionals No. 1,031

13 May 2019

Improvements are part of being SWISS

New date for beluga flight

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INSIDE HAMBURG PILOTS FAIR@LINK

HAMBURG Airport has introduced DAKOSY’s FAIR@Link Air Cargo Community System to speed up the freight process for imports and exports ... PAGE 2

EMIRATIS FILL KEY ROLES

new date has been set for the flight of the beluga whales, after the initial travel date had to be cancelled due to bad

weather. Little Grey and Little White were

ETIHAD Cargo has made several Emirati national appointments within its commercial operations to enhance both its Global Customer programme and ... PAGE 5

due to fly from China to Iceland with Cargolux in April because of rough seas preventing ferry travel between Iceland’s mainland and Heimaey. The two belugas are now due to fly on 19 June, embarking on a 6,000mile journey from Changfeng Ocean

World in Shanghai, China to the large sanctuary in a natural bay in Heimaey, off the south coast of Iceland. From Changfeng Ocean World, Little Grey and Little White will travel by road to Shanghai Pudong International Airport, fly to Keflavik Airport in

Iceland, then drive to the ferry port for a 30-minute crossing, before driving a short distance to Vestmannaeyjar. Once at the sanctuary, they will be transferred to a landside facility and placed into a special care pool to be assessed following their journey.

PROFITS GROW IN Q1 FOR ATSG

FIRST quarter profits have increased by $7 million for Air Transport Services Group (ATSG), but pilots are still concerned about the ... PAGE 6

Demand inches up in March, headwinds not going away AIRFREIGHT demand was up marginally in March but is still down 1.5% in seasonally adjusted terms, the International Air Transport Association (IATA) reports. Freight tonne kilometres increased 0.1% in March, a significant improvement on the year-onyear contraction of 4.9% in February but demand is still down 1.5% a year in seasonally adjusted terms. Air cargo continues to face significant headwinds due to global trade volumes falling 1% over the past

year; global economic activity and consumer confidence weakening; and the export order component of the global manufacturers Purchasing Managers Index indicating falling global export orders since September 2018. Alexandre de Juniac, director general and CEO of IATA says: “Year-on-year demand for air freight edged back into positive territory in March with 0.1% growth. After four consecutive months of contraction, this is an encouraging development. But

the headwinds from weakening global trade, growing trade tensions and shrinking order books have not gone away.” Freight capacity continues to rise, with available tonne kilometres increasing 3.1% in March, the 11th month out of 12 where capacity growth has outstripped demand. Industry confidence remains relatively upbeat, with only 13% of respondents to IATA’s Business Confidence Survey expecting to see a decrease in freight volumes in 2019.

GREEN LIGHT FOR LABELS

A dangerous goods label might seem a modest element to the transit of airfreight but its importance to safety and security cannot be overestimated ... PAGE 10

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A A II R R

Old News

C C A A R R G G O O

W W E E E E K K

Hamburg pilots DAKOSY FAIR@Link system

B777F - Boeing introduces its new star

2 June 2008

escribed by Boeing as “the world’s most capable twin-engine freighter airplane,” the first new B777 freighter was rolled out on 21 May at the US aircraft manufacturer’s Everett, Washington facility. Larry Loftis, vice president 777 programme, said: “The 777 freighter’s unmatched range, efficiency and capacity as a twin-engine cargo airplane will build on the Boeing leadreship in the cargo market. According to Kim Pastega, the deputy programme manager and deputy chief project engineer, 777 Freighter programme: “Anytime you develop a new airplane that will deliver unmatched performance, there are challenges to overcome. “By working together with our customers and suppliers, we found a way to meet those challenges and build the best possible new cargo airplane.” The 103-tonne capacity B777F will begin its flight test and certification programme with the first production model due to be delivered to Air France Cargo in the fourth quarter of the year. According to Pascal Morvan, a senior vice president at Air France KLM Cargo, the new aircraft will be introduced first on the carrier’s North Atlantic routes. “We must use somewhere where it can go and come back in 24 hours,” in order to make the best initial use of the aircraft he explained. “With the second aircraft, we can move on to the Far East and then with the third we should be able to cover the whole network.” Prior to delivery and during final testing, the first B777F will fly in the Boeing livery. “We will repaint it in Air France colours when it is delivered to us in October, this year,” said Morvan.Russian all-cargo carrier AirBridgeCargo Airlines (ABC) has helped

ABC B747Fs in aid missions deliver more than 160 tonnes of relief goods to the victims of the cyclone in Burma and the earthquake in southwest China. On May 19, an ABC B747-200F left Frankfurt bound for Bangkok with 100 tonnes of humanitarian aid, including medical equipment, blankets and tents. According to the Chinese government, since the earthquake a total of 280,000 tents, 480,000 quilts and 1.7 million jackets have been delivered to the disaster zone.

amburg Airport has introduced DAKOSY’s FAIR@Link Air Cargo Community System to speed up the freight process for imports and exports. FAIR@Link is a neutral, IT-supported air cargo community system that enables all companies involved in the freight handling process to optimise and accelerate transport and freight processes for both import and export. Customs, security, dangerous goods and supply chain management processes are all supported and in many cases are automated. Alexander Muller, head of cargo at Hamburg Airport says: “I’m certain that the standardised early data exchange between the process participants made possible by FAIR@Link will create great added value for everyone. The pilot project will provide us with conclusive results for the processes at our air freight centre.” Ulrich Wrage, CEO of DAKOSY says: “Through intelligent process support and networking, FAIR@Link provides the ideal basis

China Airlines orders 777Fs

hina Airlines has signed a memorandum of understanding with Boeing for three firm 777 Freighter orders with the option for another three. The 777Fs will be used on flights to Europe and North America, replacing older 747-400Fs in service. China Airlines says the 777Fs offer efficient operations and better economics than the older aircraft. ULDs for 777Fs and 747-400Fs are compatible, which China Airlines says leads to smooth transit cargo handling. The airline says that compared to the 747-400F, the 777F offers fuel savings of more than 20%. China Airlines added 10 777-300ER passenger aircraft to its fleet between 2014 and 2016. The Taiwanese airline says that both aircraft use the same GE90 engine, reducing maintenance costs. With common type pilot deployment, the airline also says the a 777-300ER pilot could easily fly a 777F after receiving difference training.

for further optimising the physical processes between companies involved in air freight processing and for achieving significantly faster and more transparent processing.” FAIR@Link is designed to standardise and optimise Hamburg’s cargo centre, shortening handling and waiting times, increasing transparency along the transport chain and minimising errors and costs by avoiding duplicate data entry. The door management system gives time slots for the delivery of goods, with the delivery company and handling partner being able to coordinate schedules for the delivery of goods. The four-month pilot project started on 6 May, with project partners concentrating on export processes. In addition to Hamburg Airport and DAKOSY, the project participants include forwarding agents Cross Freight, Delta Stallion, a.hartodt and Sable, and handling partners LUG and Swissport, the Hamburg Airport Customs Office and the Hamburg Freight Forwarders Association.

DSV makes a move in Istanbul

SV has moved into a new logistics facility in Istanbul, located close to both ports, airports a good road network and options for rail transport. The facility is located in the Tulza area of Istanbul, and has a total of 45,000 sq m of open and closed warehousing including 2,000 sq m of offices. The Tulza facility is surrounded by several industrial zones including the chemical, FMCG and automotive industries. The warehouse has top-level security and ISO management certifications for environmental and quality management and for information security, as well as a total of 6,000 sq m of bonded warehousing area, making it suitable for industries including automotive, FMCG, aerospace and fashion. Metin Oz, logistics manager for DSV Turkey says: “With the new facility, we offer our customers one-stop-shopping. We can handle our customers’ goods for any transport mode, warehousing, and distribution - all from the same place.”

Beyer to manage Dachser operations in Thailand

ACW 13 MAY 2019

JAN-MICHAEL Beyer has been appointed for the role of managing director air and sea logistics in Thailand for Dachser. Prior to this appointment, Beyer was country manager for Thailand, and head of sales air and seas logistics Thailand, Vietnam, Singapore and Malaysia. In his time in Thailand, Beyer has established relevant services including customised daily airfreight round trips between Europe and Thailand. Beyer says: “Thailand is a major logistic hub in the region with one of the most developed industries within ASEAN. Being the second largest economy in Southeast Asia, this country has huge potential in many aspects.” He believes the team can further develop sales from the local network, and also says: “From a logistical point of view, Thailand is a fascinating place. I am looking forward to working closely with our professional teams to combine our experiences and skills to drive our business to the next level.” Beyer joined Dachser in Germany in 2007 before relocating to Asia where he held several positions. After managing sales activ-

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ities in Thailand since 2015 he was promoted to head of sales air and sea logistics Thailand, Vietnam, Singapore and Malaysia in 2018. In his new role, Beyer will report to Edoardo Podesta, managing director air and sea logistics Asia Pacific.

FedEx acquires assets of Flying Cargo

edEx Express has acquired the business and assets of the international express division of Israeli firm Flying Cargo Group. The Israeli Competition Authority granted merger approval for the acquisition on 20 February. Flying Cargo Group provides logistics services, warehousing, fulfilment and distribution in Israel. It provides the services from its own facilities throughout the country including e-commerce, returns management and domestic pick-up and delivery. Avi and Dany Reik, owners of Flying Cargo Group say: “For nearly 30 years, we have operated as the FedEx Express licensee in the Israeli market, making the FedEx values, culture, innovation and unmatched global network accessible to Israeli customers. We are sure that this transaction will provide even better opportunities to our loyal customers and employees.” Bert Nappier, president of FedEx Express

FIJI Airways will add Airbus A350 XWBs to its fleet by leasing two A350-900s from DAE Capital. The A350s will be used on existing long-haul services between Fiji, Australia and the USA and provide opportunities for additional routes. AIR Transat has taken delivery of its first Airbus A321LR, leased from AerCap. The Canadian airline plans to use A321LRs on routes to Europe, the Caribbean, and Central and South America. It is the first of 15 on order and will replace older aircraft as part of a plan to convert to an all-Airbus fleet by 2022.

Europe and CEO of TNT Express says: “With ten weekly flights to and from Tel Aviv, our customers benefit from seamless connections to destinations all over the world, creating more possibilities for their

businesses. “In the near future, by bringing together FedEx and TNT in Israel, customers will benefit from a combined network that is stronger than ever before.”

The flights to the heart of China’s export led manufacturing industries will start on 18 September, operating three times a week using an Airbus A340-300 and taking around 13 hours 40 minutes.

As well as providing passenger links, the Guangzhou flight will be of interest to traders, with SAA saying that cargo will complement the viability of the route. Guangzhou is the largest city in Guangdong province and is an important transportation hub and trading port, located on the Pearl River about 120 kilometres northwest of Hong Kong. Vuyani Jarana, CEO of SAA says: “Adding a direct service to mainland China, combined with our current popular flights to Hong Kong provides SAA with immense growth opportunities to and from mainland China. It also gives our traders access to the centre of Chinese manufacturing.” Guangdong is described as “the world’s manufacturing hub”, and SAA says that formal and informal traders source the majority of goods purchased in Sub-Saharan Africa from the province due to Africa’s poor manufacturing capacity.

South African to open route to Guangzhou

outh African Airways (SAA) will open its first new route since implementing its turnaround strategy, by providing a link between Johannesburg and Guangzhou, China.

Airway Bill’s

Page 3 any point in Great Britain or Ireland in 72 continuous hours”. The competition was suspended at the outbreak of war in 1914 and reopened after the Armistice in 1918. John Alcock and Arthur Brown departed from Newfoundland on 14 June 1919 in a modified First World War Vickers Vimy and flew across the North Atlantic Ocean in 15 hours 57 minutes before crash landing in Derrygimlagh Bog. A commemorative festival running from 11-16 June will celebrate the aviation heroes, with events including live re-enactment of the 1919 landing. Local historians and archaeologists will give guided tours of the area, with literary figures including Tony Curtis, Brendan Lynch and others will host poetry readings and discussions, while seminars will explore the Alcock and Brown story. Waterford Crystal are launching a limited-edition miniature replica of the

THE first Airbus A330neo for Lion Air Group rolled out of the Airbus paint shop in Toulouse, France on 6 May. The aircraft will be operated on lease from BOC Aviation. Lion Air Group will acquire 10 A330neos, eight of which will be leased from BOC Aviation. PETER Hay will join the board of Australia Pacific Airports as the independent chair on 1 July. In the role at the owner of Melbourne and Launceston airports, Hay will join a board that includes representatives from shareholders AMP Capital, IFM Investors, Future Fund and NSW Treasury Corporation. FLYNAS will provide connections between Riyadh, Saudi Arabia and New Delhi, India from 1 July. It will operate five flights a week between King Khalid International Airport and New Delhi Indira Gandhi International Airport. The route follows the opening of flights to Hyderabad in June 2018. ETIHAD Airways will increase services to London’s Heathrow Airport over the summer with up to five flights a day. Between 26 May and 22 June, a fourth daily flight will be added followed by a fifth between 23 June and 28 September, before returning to four a day from 29 September to 26 October. The additional flights will be operated using Boeing 787-9 Dreamliners. THE supervisory board of Deutsche Lufthansa has decided ahead of schedule to extend the contract of Thorsten Dirks by three years until 30 April 2023, allowing him to continue as CEO of Eurowings. The 55-year-old has been an executive board member of Deutsche Lufthansa since 1 May 2017 where he is responsible for Eurowings. SYDNEY-San Francisco will be Qantas’ next Boeing 787-9 Dreamliner service, with the aircraft being used on the daily route from 4 December. The change is timed with the phased delivery of six additional Dreamliners and the gradual replacement of Boeing 747s. Qantas has eight 787-9s in its fleet with a further six arriving from October.

Alcock and Brown return to historic site THE Alcock and Brown sculpture was moved from its home at the Heathrow Academy to Clifden, Co Galway on 7 May to mark the centenary of the first nonstop transatlantic flight. The limestone statue, unveiled in 1954, was commissioned by the British government and sculpted by William McMillen featuring the pilots dressed in aviator clothes. It weighs one tonne and is 11-foot-high and almost four foot wide. A transportation casket was specially commissioned to safely transport the statue to Ireland. It is being exhibited at Abbeyglen Castle Hotel in Clifden in the run up to the centenary on 15 June. In April 1913, the Daily Mail offered a £10,000 prize (about £500,000 in 2019 money) to “the aviator who shall first cross the Atlantic in an aeroplane in flight from any point in the United States of America, Canada or Newfoundland to

ACWBITES

ON 2 May, United Airlines launched its ninth daily nonstop flight between the USA and Germany, connecting Denver with Frankfurt. Flight UA182 leaves Denver at 15:45 and arrives in Frankfurt at 09:20 the next day. The return flight, UA181 leaves Frankfurt at 11:05 and lands in Denver at 13:20. The service uses a Boeing 787. NIPPON Cargo Airlines has made changes to its board of directors, with Hiroyuki Homma and Masaya Suzuki exchanging roles. Homma has given responsibility for service quality and development to Suzuki and will continue to manage business planning and strategy, marketing, revenue management for Americas headquarter, and Europe region. Suzuki is still responsible for Japan sales. Vickers Vimy to commemorate the centenary. It is made up of 51 individually hand-crafted pieces and took over 160 hours to complete.

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DOUGLAS Allingham was appointed chair of the board of directors for the Greater Toronto Airports Authority at its Annual Public Meeting on 7 May.

ACW 13 MAY 2019

Hawaiian Airlines renews five-year contract with SmartKargo

awaiian Airlines has renewed its five-year contract with SmartKargo, continuing the cloud-delivered realtime management of the carrier’s air cargo business using the advanced end-to-end Software as a Service (SaaS) solution. Hawaiian was the first US carrier to adopt the SmartKargo Cloud platform in 2014, with the implementation Go Live in 2Q 2015. Since then, the airline has utilised the innovative set of integrated tools that the SmartKargo SaaS solution offers to support and grow its domestic and international Cargo business, including the addition of freighter-configured ATR-72 aircraft to support a new All Cargo Overnight service within the Hawaiian Islands. The airline in 2017 also unveiled its multimillion-dollar Charles I. Elliott Maintenance and Cargo Facility, the Honolulu hub of its cargo business. Brad Matheny, managing director of Cargo at Hawaiian said: “For the past five years, the SmartKargo Cloud solution has provided Hawaiian Air Cargo with the advanced digital tools needed to quickly transform our cargo operations. As a result, our team was able to

further digitise our processes to support faster air freight operations, growth and an improved experience for our customers in Hawai‘i and abroad. We are very pleased to extend the partnership and look forward to continuing to grow and innovate.”

Alitalia approves use of CSafe RAP containers

ALITALIA has strengthened its partnership with CSafe Global by approving the use of RAP active temperature-controlled containers. The RAP container is being used by airline customers to transport temperature-sensitive and time-critical shipments of pharmaceutical and life science products. Brad Jennings, vice president of global marketing and partner alliances for CSafe Global says: “With its state-of-the-art VIP insulation, innovative air recirculation system, and unique, autonomous temperature management pro-

gramming, the CSafe RAP, in combination with Alitalia’s cargo service, ensures the safe delivery of temperature-sensitive, life-enhancing products to patients in need.” Antonio Temporini, vice president of cargo at Alitalia says: “There is increasing demand for transport of temperature-sensitive healthcare products preserving their quality and value, and this enhanced partnership further allows us to offer innovative solutions to healthcare shippers for the protection and the integrity of their shipments.”

Saudia Cargo restarts Asian freighter flights

SmartKargo has allowed Hawaiian to empower customers with real-time shipment information, gain access to advanced tools such as mobile apps and integrate quickly and seamlessly, with airline systems and a network of third party providers. This was accomplished

via the SaaS solution offered through the Microsoft Azure platform and the large number of APIs that SmartKargo can provide. The enhanced capabilities of the SaaS solution have also given Hawaiian access to paperless e-AWBs; ease of booking for cargo agents and customers with single- screen data entries; powerful pricing and rate-making via simplification; real-time capacity management: user-configurable real-time Business Intelligence and reporting; and integrated Cargo Revenue accounting. In addition, streamlined participation in e-commerce growth is available to Hawaiian via the platform to operate first-mile pick-up and last-mile delivery for e-commerce—facilitating B2B or B2C door-to-door operations via mobile applications and 3rd party integrations. Milind Tavshikar, CEO, QuantumID Technologies, SmartKargo said: “On behalf of the SmartKargo team, we are grateful to have the continued support of Hawaiian’s Air Cargo team as well as their exemplary and forward-looking leadership. We look forward to supporting their growth and in enabling new opportunities in the marketplace as they arise.”

VOLGA-DNEPR Airlines has supported the construction of a 32-turbine renewable energy wind farm in Australia with the delivery of 80 tonnes of energy equipment for General Electric. The Antonov AN-124-100 allowed the four metre long, 36 tonne wind turbine hub and three 12.6 tonne generators to be positioned inside the aircraft using its own loading system and external crane. Volga-Dnepr’s in-house professionals expedited the shipment by organising road transport to Cologne Bonn Airport in Germany and then to the constructing place near Hallett in South Australia after its arrival in Adelaide. Ekaterina Andreeva, deputy commercial director of Volga-Dnepr Airlines says: “Our three-decade knowledge and expertise, ability

to move the entire load on a single AN-124100 flight and fast road transport solutions in Germany and Australia helped us to halve the typical end-to-end transit time for a delivery like this.”

Volga-Dnepr brings renewable energy to Australia

AEO certificate for time:matters

SAUDIA Cargo has strengthened its presence in China and India by resuming freighter flights to Guangzhou and Mumbai. Weekly freighter services started in April to meet growing demand for cargo operations and stimulate trade movements, in addition to operating five flights a week to Dhaka, Bangladesh and seven a week to Hong Kong. Saudia also has access to belly capacity on flights to the region.

Omar Hariri, CEO of Saudia Cargo says: “Saudia Cargo will mobilise its logistical capabilities to and from both destinations, adding an extra weekly freighter flight to Guangzhou operated by a Boeing 777F aircraft and another to Mumbai, operated by a Boeing 747-400F, offering estimated 100 tonnes of capacity to each destination in addition to the belly-capacity on board Saudia passenger flights.”

TIME:MATTERS has been certified as an Authorised Economic Operator (AEO) by the main customs office of Darmstadt, Germany. The certificate confirms time:matter’s reliability and service quality, with international customers being sure of the company complying with all standards for effective protection of the customer supply chain. The certificate obtained by CB Customs

US raises tariffs on Chinese goods to 25%

IN the dry language of an official US government document, “effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time (EDT) on May 10, 2019, and exported to the United States on or after May 10, 2019” a 25% tariff on $200 billion worth of imports from China will be imposed, up from the

ACW 13 MAY 2019

current 10% rate. Washington claims that in its “most recent negotiations, China has chosen to retreat from specific commitments agreed to in earlier rounds. In light of the lack of progress in discussions with China, the President has directed the Trade Representative to increase the rate of additional duty to 25%,” the document said.

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Broker and now time:matters is the highest possible official AEO certificate, with combined authorisation covering both customs simplification of the AEO-C status and the security and safety requirements of the AEO-S status. Lars Krosch, COO of time:matters says: “This confirms the success of our long-standing service excellence and quality strategy and illustrates that security and consistently high standards are a priority for us in our cooperation with customers. “By certifying our status, the customs office has officially recognised that we are a reliable and trustworthy partner in international goods transport. This represents the logical next step and consolidation of our commitment to quality.”

The move, which has done much to unsettle Asian markets, follows a Sunday afternoon pair of tweets from President Donald Trump stating the existing tariffs will rise and new ones could be coming. The Office of the U.S. Trade Representative (USTR) has yet to issue a formal statement announcing the increase. Government officials have told the media they may revisit the rise should trade talks get back on track, CNBC reported.

Emiratis fill key roles at Etihad Cargo as customer rewards get updated ETIHAD Cargo has made several Emirati national appointments within its commercial operations to enhance both its Global Customer programme and its UAE home market. The UAE Commercial function will be headed by Bader Ahmed Al Ali, who will look after key UAE customer accounts, UAE government key accounts, Dubai and Northern Emirates sales, Abu Dhabi sales, imports and Etihad Cargo counter sales at the Abu Dhabi Cargo Terminal, as well as specialised product sales. He will oversee fellow Emiratis taking up new roles within the UAE Commercial team with Raya Mohamed Ibrahim for UAE key accounts, Hessa Al Shehhi for government key accounts and Aref Al Mulla for Dubai and Northern Emirates sales helping Etihad Cargo better serve its home market. Haleema Al Hosani will lead the commercial programmes of Etihad Cargo’s revamped Global Customer programme and Cargo Loyalty scheme. She has been with the Etihad Aviation Group for over two years, and prior to this held several posts with the Abu Dhabi Department of Transport, Abu Dhabi Aviation Sector Development Committee and the International Civil Aviation Organization Air Transport Regulatory Panel.

Abdulla Mohamed Shadid managing director of cargo and logistics services for the Etihad Aviation Group says that in the 15 years since its inception, Etihad Cargo has become a top 20 air cargo carrier. He says: “Our Global Customer programme, our loyalty scheme and our UAE home market have all been key catalysts for this growth, and today’s key Emirati appointments are a further signal of our commitment to better serve these segments, while developing our top Emirati talents into key leadership positions.” Etihad Cargo has rebranded its “PayLoadRewards” cargo loyalty scheme and renewed its Global Customer programme for freight forwarders. Launched in 2013, PayLoadRewards is a dedicated loyalty programme for air cargo customers, who will continue to earn miles as before with an additional opportunity to start earning bonus miles for general cargo and premium cargo through the online booking portal. Similar to the passenger Etihad Guest loyalty programme, cargo customers can now receive exclusive benefits upon attaining Silver, Gold or Platinum Tier Status, with further enhancements to be progressively rolled out.

Left to right: Ibrahim, Ali and Hosani The renewed Global Customer programme offers freight forwarders three tiers: Global Account, Global Plus and Global Partner, each holding different support levels. Al Hosani says: “These programmes have been designed to reward growth, trust and consistency, embedding a renewed customer-driven culture into Etihad Cargo’s modus operandi.”

DB Schenker renews agreement with CHAMP’s TRAXON cargoHUB DB Schenker has renewed its agreement with CHAMP Cargosystems for its TRAXON cargoHUB, allowing the freight forwarder to communicate digitally with supply chain partners. TRAXON cargoHUB features one of the largest air cargo communities with electronic access to over 100 airlines and 3,000 forwarders operating from 9,000 branches worldwide. By improving the quality of data and completeness in the supply chain, TRAXON cargoHUB connects the airfreight community irrespective of their IT configuration or systems. Laurent Jossa, head of sales – distribution services at CHAMP Cargosystems says: “The cargoHUB community – and CHAMP’s other supply chain integration services – is an integral part of the air cargo supply chain. Therefore, we are delighted to be able to nurture such long-lasting relationships within it.” Niklas Wilmking, executive vice president of global airfreight at DB Schenker says: “Our ongoing use of CHAMP’s TRAXON cargoHUB solution demonstrates its effectiveness and ability to adapt to changing times. We are delighted to continue this relationship and hope to have many more fruitful years to come.”

Stoekenbroek to head up EMEA operations for Kerry KERRY Logistics has appointed Martin Stoekenbroek as its managing director – Europe, Middle East and Africa (EMEA). Amsterdam, Netherlands-based Stoekenbroek will lead Kerry Logistics’ international freight forwarding business in the EMEA region and will be in charge of its strategic development. Prior to joining Kerry Logistics, he was senior vice president global airfreight at Geodis, and has previously worked for top industry players including Wilson Logistics and TNT Freight Management. Mathieu Biron, managing director – global freight forwarding of Kerry Logistics says: “Having built his career in logistics within the EMEA region for decades, Martin possesses an in-depth knowledge of our business in the region and a thorough understanding of the changing conditions of our industry.” Commenting on his new role, Stoekenbroek says Kerry Logistics is going from strength to strength and he is honoured to be leading a strong team. He says: “At a time when the global supply chain is in flux, I look forward to contributing to Kerry Logistics’ progress and overcoming challenges to reinforce its position as a leading logistics partner connecting EMEA to the rest of the world.”

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ACW 13 MAY 2019

Profits grow in Q1 for ATSG, pilots still concerned about staffing

irst quarter profits have increased by $7 million for Air Transport Services Group (ATSG), but pilots are still concerned about the working environment. Net earnings increased from $15.8 million in the first quarter of 2018 to $22.6 million this year helped by additional Department of Defense flights and its customers, and from freighter flights for lease customers during 2018. Capital spending rose 16% to $91.9 million, which included spending $70.5 million to purchase four Boeing 767s and for freighter modification costs. Joe Hete, president and CEO of ATSG says the first quarter results provide a solid basis for continued growth in 2019 with the additional 767s due to be deployed in the second half of the year. He says: “Our acquisition of Omni Air, and recent agreements with our largest commercial customers, Amazon and DHL, add years of contracted revenue streams from aircraft leasing and from operations by our airlines and related service businesses.”

Hete adds: “Our customers are focused on transport options that offer optimal combinations of reliability, flexibility, and cost-efficiency, with a particular emphasis on speed. In response, we continue to add aircraft

options, including the Boeing 777 via Omni, and a converted freighter variant of the Airbus A321-200 aircraft we are developing through our joint venture with Precision.” ATSG predicts that adjusted EBITDA will grow

to $450 million with nearly all of Cargo Aircraft Management’s freighters being deployed in the second half. Hete says: “Along with indications for heavier second-half flying schedules, however, we now project that the $1.5 million in ramp-up costs we projected in February will increase to $7 million, most of which will be incurred in the second quarter.” ATSG predicts that at least nine 767s will be leased in 2019, including five for Amazon and four for UPS. Pilots for subsidiary ABX Air have continued to raise concerns about the way the airline is being managed. Captain Rick Ziebarth, and ABX Air pilot and executive council chairman of ABX Air Teamsters Local 1224 says: “ATSG’s continued success will be dependent upon its ability to attract and retain pilots in the future. Right now, pilots experience understaffing, scheduling issues, and disrespect from management. The company needs to be aware of the current hiring environment—otherwise we fear there soon won’t be enough pilots to fill the cockpit.”

umes reflected more military passenger and commercial cargo demand that were partially offset by a decrease in military cargo flying. Dry leasing revenue rose to $69.9 million, reflecting maintenance payments related to the scheduled return of a 777F in March 2019 as well as the placement of incremental aircraft with customers. William Flynn, president and CEO of Atlas Air Worldwide says: “We are benefitting from a full year of flying the 16 aircraft we added during 2018 for customers such as Amazon, Asiana Cargo, DHL Express, Inditex and SF Express, as well as the three aircraft for Nippon Cargo Airlines that we are adding this year.” He says the focus on express, e-commerce and fast-growing markets provides a solid foundation for future business and earnings growth. Flynn says: “We were pleased to announce an expansion of our relationship with Amazon in March. We are scheduled to begin flying five 737-800 aircraft on a CMI basis for Amazon this year, including two starting this month, with up to 15 more by May 2021. This opportunity provides a path to continued expansion in a desirable aircraft type, and it will enhance scale in the 737 platform we operate through Southern Air.”

with Panalpina, extending the Swiss company’s perishables network in South America. Buenos Aires, Argentina-headquartered Newport handles around 24,000 tonnes of airfreight exports per year and also has an office at Ezeiza International Airport. Newport Cargo was founded in 1978 and the company’s 42 staff who serve 150 customers and the 60 Panalpina employees are now working under one roof. Key features of the transition include the new office set up to ensure integration both in the downtown and airport office; a Miami perishables LATAM gateway in Panalpina’s network; and strengthened business development in

Laurent Riesen, managing director for Argentina and Uruguay at Panalpina says: “I’m very proud of the integration plan and project team. They set ambitious deadlines and met them even for critical topics such as legal requirements, system and connectivity continuity. The most telling outcome of this transition and how effectively it was handled is that we retained all of our business during the transition.” Frank Hercksen, regional CEO for the Americas at Panalpina says: “As we embark on another perishables acquisition and merger in LATAM, I hope the achievements of the teams in Argentina can serve as inspiration for our teams in Colombia and Ecuador.”

merged into Panalpina network Q1 exceeds Atlas Air’s expectations Newport ON 1 May, Newport Cargo was legally merged Chile with improved cross-selling for dry cargo.

FIRST quarter results exceeded expectations for Atlas Air with adjusted income rising by $3.5 million to $27.3 million. The adjusted results exclude the impact of warrant accounting, with unrealised losses totalling $46.6 million, pushing reported first quarter losses to $29.7 million. Volumes in the first quarter increased 19% to 77,061 block hours, and revenue grew by 15% to $679.7 million. Increased ACMI revenue of $306.5 million reflected an increase in flying, with block-hour growth coming from extra Boeing 767 services for Amazon, Boeing 777s for DHL and starting up Boeing 747-400 flights for new customers. Charter revenue of $305.1 million came from increased flights, and higher block-hour vol-

Plantinum Equity acquires Livingston GLOBAL investment firm Platinum Equity has completed its acquisition of North American customs brokerage and trade services firm Livingston International. Livingston is the largest pure-play customers brokerage firm in North America with headquarters in Toronto, Canada and its US headquarters in Chicago. It serves more than 30,000 businesses globally, completing and

transmitting customs documentation and ensuring goods can clear international borders. Dan McHugh, CEO of Livingston International says: “We are excited about the possibilities that lie ahead and look forward to benefitting from Platinum’s dedicated resources and counsel as we continue to focus on providing best-in-class brokerage, freight forwarding and trade management solutions.”

Saloodo! comes to the United Arab Emirates DEUTSCHE Post DHL Group digital freight platform subsidiary Saloodo! is coming to the Middle East by expanding to the United Arab Emirates. The digital freight platform that is available to shippers, dispatchers and carriers in Europe will be available to users in the Gulf region for domestic transport and international freight. Saloodo! is a forerunner to digitalising the logistics industry with customers benefitting from digital handling of their items without lengthy price negotiations on the telephones or fax. In Europe, more than 18,000 shippers and over 7,000 carriers with more than 250,000 available trucks are already working with Saloodo!, with numbers continuing to grow as it expands in the Middle East. Thomas Grunau, CEO of Saloodo! in Europe says: “It allows shippers and transport providers to find each other more easily, and makes road freight processes more transparent and efficient.

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Especially given the strong growth of the logistics market in the Middle East, we feel this is just the right place to begin offering our solution beyond the EU and develop it further.” Saloodo! simplifies road freight by matching shippers to transport providers with Saloodo! remaining the central contact person, meaning from initial booking to final payment, all documents and information flow goes through a single platform. Tobias Maier, CEO of Saloodo! MEA says: “Even though the UAE is one of the largest logistics markets in the Gulf Cooperation Council (GCC), there remain untapped opportunities given the economic diversification and several road infrastructure investments underway. “Equally, DHL’s deep expertise in the region and wide portfolio of service offerings will support the successful deployment of Saloodo! in the UAE, and ultimately in the Gulf region.”

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SWITZERLAND

Continous improvement is all part of being SWISS

Bhat

wiss WorldCargo has been known as a “niche” carrier, something that head of cargo Ashwin Bhat believes makes it stand out in the industry. He says a major focus is on special products, shipments requiring additional attention and care, which covers a lot of different goods but includes pharmaceuticals and valuables. Bhat tells Air Cargo Week that Swiss WorldCargo has a strong market share in both segments and has frequently proven its expertise carrying more difficult shipments. He says: “Our focus on carrying niche products certainly makes us stand out. We have a proven track record in the industry for doing so. Time and time again, we have proven our ability to handle more complicated shipments for customers worldwide.” The airline and customers are satisfied with Swiss’ product portfolio, which includes passive and active solutions for pharma, and services for valuables, security and general cargo. Listening to the customer is vital, with Bhat saying: “We are continuously engaged with our customers and along with them with the end customers to meet their needs and requirements so that we constantly adapt and evolve our portfolio according to their needs of the future.” Swiss WorldCargo is continuing to make investments. Bhat says: “We are also continuing to invest in ensuring that quality is recognised as an important part of our product offering. In

the last year, we focused on gaining CEIV certification across our global network and organisation, ensuring our competitiveness as a major global pharma carrier.” The Zurich Airport hub has state-of-the-art infrastructure, carefully defined processes and efficiency in ground handling. Swiss WorldCargo has collaborated with ground handling partner Cargologic, which is also CEIV certified and GDP certified, and manages the Zurich Airport cargo facility. Bhat says Swiss WorldCargo is continuing to invest in close collaboration and dialogue with global handling agents to keep exceeding customer needs. He says: “This currently includes cool storage options, dedicated mail handling facilities, and industry-leading handling times. All of which follows the knowledge and appreciated SWISS quality standards.” Having the right people is essential, and Bhat says Swiss benefits from Switzerland’s strong labour market and close access to top research universities. He says: “Switzerland has strong labour regulations and attractive working conditions, so we are regularly able to attract top talent to work at Swiss WorldCargo and SWISS.” Business is also dependent on diversity, and Swiss WorldCargo relies on a wide variety of ideas and inputs, regardless of age. Bhat says: “Many of our staff are younger and have recently joined Swiss WorldCargo. At the same time, we also benefit from

Zurich gets ready to refurbish runway ZURICH Airport is doing work to upgrade the runway intersection as it prepares to refurbish runway 10/28. A new transformer system will be installed at the runway intersection, which will provide electricity for the ground lighting system. Sheet piling needs to be erected and is being done at night after flight operations have finished. The work started in the night from 5-6 May and is set to last two weeks. The work is being carried out between 23:30 and 05:00 from Sunday to Friday, with no work being carried out from Friday to Saturday or from Saturday to Sunday. Airport operator Flughafen Zurich says noise emissions are inevitable during the con-

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struction period and asks residents for their understanding. The work is being done in connection with the refurbishment of runway 10/28, scheduled for 2021, with various preparatory tasks being completed this year.

having experienced staff with a wealth of experience.” The mix of staff can help Swiss WorldCargo cope with potential threats such as Amazon Prime, which is unlikely to put Swiss WorldCargo out of business anytime soon. Bhat believes they offer new ideas and encourage industry-wide development in the marketplace. He says: “In this sense, their ideas can challenge the entire industry and push forward new technological solutions and increase our ambition level.” Swiss WorldCargo is aiming to keep up with technological changes though Bhat has words of caution. He says: “It’s important that we do not use technology for its own sake but to bring value to customers.” Bhat says: “This, combined with our focus on quality and reliability, are our main focuses in ensuring that our customers remain satisfied and we continue successfully transporting and delivering shipments globally.” To stand out from the crowd, Bhat says: “We aim to bring a certain SWISSness to our business.” He says this is not just a reflection of being based in Switzerland but also a mindset. Bhat says: “We focus on continuous improvement internally, and providing quality and reliability to our customers every day. We aim to continue to stand out as a carrier of choice because of our willingness to work closely with our customers to help meet their global needs.”

K+N hold Annual General Meeting SHAREHOLDERS of Kuehne + Nagel approved all board of directors’ proposals at the Annual General Meeting on 7 May. They approved the status report, the financial statements and consolidated financial statements for the 2018 business year and followed the board of directors’ proposal of a dividend of six Swiss francs gross per share. Dr Renato Fassbind, Karl Gernandt, Klaus-Michael Kuehne, Dr Thomas Staehelin, Hauke Stars, Dr Martin Wittig and Dr Joerg Wolle were re-elected individually for one-year terms until completion of the next Annual General Meeting on 5 May 2020. David Kamenetzky was elected to the board of directors. Wolle was re-elected chairman of the board of directors.

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Shareholders followed the board of directors’ recommendation to re-elect Gernandt and Kuehne to the compensation committee for another one-year term and Stars was newly elected to the committee.

DANGEROUS GOODS

Taking the danger out of dangerous ,

ANY party in a logistics chain plays a crucial role in making sure that shipments containing dangerous goods (DG) happen in a safe and compliant manner. Shipping dangerous goods always concerns protection of the environment as well as keeping the dangerous goods safe.

ccording to Steve Dickinson, head of solutions for UK & Ireland for HAE Group, DG shipments have an unlikely pay-off for carriers: “DG shipments are a strong high yield revenue stream for most airlines and we are keen to develop this further through our internal and external sales teams to maximise high yield to the airline which we represent,” says Dickinson. “Our solutions programme also promotes the service as many mainstream forwarders appreciate the expertise and experience we offer.” While DG is a vital source of high yield business to airlines, the regulations on handling, segregation from general cargo and specialised equipment for loading and handling are all key to limiting the risk to the environment whilst in the supply chain. “HAE has been involved in all classifications of dangerous goods by air. This is dependent on the airline we represent as a GSSA or on an HAE solution that the customer has asked us to carry. We also have freighter airlines in our portfolio as CAO (Cargo Aircraft Only) and restricted Class 1 material have also been handled on occasion.” There are no specific limitations on what HAE will ship, providing the acceptance, compliance and licences are in place

by the shipper, operator and the consignee. Its job is to ensure compliance and adherence to regulations and only to work with validated and approved operators. Around 10% of HAE’s business is classified as dangerous goods. It is a growing market for HAE and its airline partners and customers. “HAE group is lucky as DG and compliance training is managed by the groups own IATA approved training company TSA. By virtue of these arrangements we have a quality management system with both internal and external audits of our processes and we have a great number of trained personnel in the various classifications of training on DG. We also have a handling and screening activity in the group where our staff are trained in acceptance and awareness,” says Dickinson. HAE’s GSSA team is trained in the acceptance and bookings processes, handling staff in acceptance and awareness, all of this governed by group training company who provide DGSA services to the industry.

Dickinson says: “Information and documentation are key from booking through to dispatch. The only problems that normally arise are incomplete information from actual shippers, which is rare and different information on commodity and packaging requirements. This is often spotted on differences Dickinson: Around 10% of between booking and acceptance HAE’s business is classified checking by the GHA. as dangerous goods. DG are almost never deliberately mis-labelled, accidentally very occasionally and on some e-commerce business where HSA acts as a handler for service providers, it must be vigilant against non declared DG. He says: “This is why training is so important in the screening and handling businesses. The C2C revolution and fledgling B2C sellers need good education on what is and what is not allowed.”

On-line prevention of real world dangers

t all starts with being compliant to the applicable regulations involved. Think of rules for correct packaging, labelling and accompanying documentation. This does not mean that incidents and accidents cannot happen anymore but if implemented and used correctly it decreases the likeliness tremendously. Having said this, the move towards digitalisation and automation brings, and already has brought, lots of opportunities to conveniently be compliant. Headquartered in the Netherlands, DGOffice.net is an online software solution for transport documents for any mode of transport. There is limited repetition of data entry, not only for the person creating a certain document but all parties involved in a logistics chain. It even goes beyond creation of electronic DG documentation. The company has built an e-freight solution via which DG documentation can be validated and shared between different parties involved. In short, a shipper initiates the process and owns 95% of the data involved in a DG shipment. A digital version of the declaration created is sent to the freight forwarder via the e-freight solution. This party only needs to add missing information, such as an AWB number, and can then forward it to a ground handler or carrier. There are three other e-freight related initiatives in Europe, in Germany, France and Switzerland. The first to go live, expected later this month, is Lufthansa Cargo for air cargo in Germany. Shippers can offer their dangerous goods shipments to Lufthansa Cargo in Frankfurt, Hamburg, Munich and Stuttgart via the DGOffice.net e-freight solution.

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DANGEROUS GOODS

Hazard labels give green light to safety HAZARD LABELS AND HANDLING MARKS ARE DESIGNED TO MINIMISE THE POSED BY DANGEROUS GOODS (DG).

dangerous goods label might seem a modest element to the transit of airfreight but its importance to safety and security cannot be over-estimated. That is the opinion of Richard Shreeve, compliance manager of UK-based Labeline International, a lead player in dangerous goods compliance, supplying publications, labels, documentation, software and training. He says: “There are standard parameters for the specification, quality and properties of labels and marks included in the DG regulations for each mode of transport.

“IATA DGR (7.2.21) states the material of every label, the printing and any adhesive thereon, must be sufficently durable to withstand normal transport conditions, including open weather exposure, without a substantial reduction in effectiveness.” Shreeve, a long-time safety expert, notes that hazard labels used in all modes, including air, have specified dimensions and rules that determine their appearance. He says: “Procurement departments are not

The 9 Dangerous Goods Classes

THE International Civil Aviation Organization’s (ICAO) Technical Instructions are an internationally agreed set of provisions governing the requirements for transporting dangerous goods by airfreight. The International Air Transport Association (IATA) publishes the Dangerous Goods Regulations in accordance with the ICAO technical instructions. The UN Model Regulations use a classification system in which each dangerous substance or article is assigned a CLASS. There are nine classes, some of which are sub-divided. CLASS 1 EXPLOSIVES - Explosives are capable of producing haz-

ACW 13 MAY 2019

always aware of the regulations and would not necessarily know to specify particular label requirements. “For example, Labeline supplies lithium battery handling marks with customer’s own telephone number for ‘more information’ and we are still getting orders for the old style lithium battery handling labels that were phased out in 2018.” Figures released by the Australian Civil Aviation Safety Authority (CASA) back up Shreeve’s

ardous amounts of heat, light, sound, gas, or smoke. CLASS 2 GASES - Gases includes compressed gases, liquefied gases, dissolved gases, refrigerated liquefied gases, aerosols, and more. CLASS 3 FLAMMABLE LIQUIDS - Flammable liquids are volatile and are capable of giving off a flammable vapour. CLASS 4 FLAMMABLE SOLIDS - Flammable solids are highly combustible and can even cause fire through friction. CLASS 5 OXIDIZING SUBSTANCES - Substances which can yield oxygen are classified as dangerous goods because they can con-

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concern that the importance of correct labelling cannot be over-estimated. It revealed that over recent years, “from all of the hundreds of incidents reported involving both domestic and international cargo, less than 1% involved dangerous goods which had been properly declared, packaged, labelled and documented.” It is also interesting that there had been only one or two reports of incidents occurring outside of the big aircraft operators. It is suspected that incidents do occur in the general aviation area but that perhaps they are not recognised as a problem or the procedures are not in place for reporting. Shreeve says: “It is essential that consigners of dangerous goods use compliant labels that can withstand the rigours of distribution, storgae, handling and product useage. “Good quality labels also reflect well on the supplier of the product,” he says.

tribute to the combustion of other hazardous substances. CLASS 6 TOXIC AND INFECTIOUS SUBSTANCES - Toxic substances are able to cause serious injury or death to humans if swallowed, inhaled, or by contact with skin. CLASS 7 RADIOACTIVE MATERIAL - Any substance which contains atoms that are subject to radioactive decay. CLASS 8 CORROSIVES - Corrosive substances react chemically to damage or destroy material, like living tissue, upon contact. CLASS 9 MISCELLANEOUS DANGEROUS GOODS - Substances which present a danger not covered by other classes.

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