Issuu

GLOBAL A

MANAGEMENT

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

FREIGH

FRE

Tabloid page unbled.indd 1

08/04/2019 12:48

The weekly newspaper for air cargo professionals No. 1,049

16 September 2019

Magnificent men and flying machines

Bookings take off at cargo.one

hree months after joining forces, the shipments booked through booking platform cargo.one are taking off on freighters operated by AirBridgeCargo and CargoLogicAir. Speaking to journalists on Wednesday 11 September at the airline’s office in Frankfurt Airport CargoCity Süd, executives were eager to tell Air Cargo Week about how the partnership is performing so far. From cargo.one, founder Moritz Claussen and senior manager Laura Weritz attended and were joined by Jonathan Celetaria, sales director Europe of AirBridgeCargo and Simson Demmer, chief strategy officer for CargoLogicManagement. Celetaria says he first became aware of cargo.one last year but did not look into it closely until management started talking about it. The first sit down was at the IATA World Cargo Symposium in Singapore this year and Celetaria was impressed. Demmer adds: “I felt very refreshed walking out of that meeting because

we were not talking about the mythical task of digitalisation but what we could do in the very near future together, and how to get going quickly.” AirBridgeCargo and strategic partner CargoLogicAir announced the partnership with cargo.one in June 2019 at the air cargo Europe exhibition in Munich, Germany. Claussen says: “It took us from WCS until Munich to set up the partnership and all the agreements, and the vision of what we wanted to achieve. Then it has taken from Munich until now to implement it.” Describing this as new and saying air cargo does not have a long history of digital booking services, Demmer says traditional IT providers will talk about five-year plans but cargo.one was talking about what could be done today. He says: “It was a quick iteration of next steps and that just clicked with our team. We were quite happy and did quite a lot of things differently as a result. Using cargo.one is a kind a-ha moment for a new booking experi-

ence, you see it like Expedia or Kayak because it just works and we wanted to be part of it.” Celetaria says: “When we were talking internally about IT solutions, we have a strategic vision and digitalisation team so you look into different types of solutions but this was something that we felt we could do very fast so we decided to go with cargo. one.” Saying the integration has been successful, Claussen adds that it was important to bring together teams who are looking to create something rather than just talk about a plan. He says: “For us it was a perfect match, on both ends we had people who wanted to create something in a really shortterm timeframe.” The partnership started on a technical level in mid-June and the first bookings started coming in at the end of August. The teams worked in two week sprint cycles to release new codes and features, and test them with the customer to ensure they worked. Adding that the industry has been

working on visibility and transparency for some time, Demmer says full transparency of booking is new to cargo. He says: “In many ways you wonder how the industry has survived with the expectation that it isn’t transparent and takes 15 minutes to two hours to know whether there’s capacity and what the price is. My expectation is that it will begin to change the way forwarders and customers think how they book as they have access to more data.” Celetaria says customer feedback has been positive due to the speed, ease of use and transparency. He says: “For us, it’s a game-changer having a wider range of customers, so you can more easily reach smaller and mid-size forwarders as well. In terms of bookings, it’s mid-sized forwarders who have been most active with requests, so it’s very positive.” Claussen foresees a time when a service such as cargo.one will become the standard way of booking a shipment, at least if it is not too complicated. He says: “We already see that for a number of smaller and medium sized forwarders that had difficulties in the past reaching carriers. There tends to be a focus on larger customers but if we look at the market, smaller forwarders make up a large chunk of the market and we see they’re booking more of their volumes. We also see it with a number of larger forwarders because they can save so much time, get quotes fast and go back to the shipper all in one go. They win business so for those customers, when they have booked once with us the conversion rate of doing the second, third and fourth booking is extremely high.”

Page 12

INSIDE FREEPORTS BOOST THE REGIONS

NEW legislation allowing the UK to set up freeports and freezones could boost British regional gateways after the country leaves the EU ... PAGE 2

CLEARING UP AFTER DORIAN

HURRICANE Dorian has caused widespread damage across the Bahamas, and now it is moving on, aid is being flown in to help those in need ... PAGE 5 PRESIDENCY FOR CORRADO

THE board of directors at Air Transport Services Group has elected Richard Corrado as president, effective from 16 September ... PAGE 6

A NEW WORLD FOR GSAS

THE US is something of a terra incognita as far as general sales agency is concerned, says local country manager at ECS Group,Francisco Hernandez ... PAGE 10

aircargoweek.com

ACWBITES DACSHER has opened a branch in Rzeszów, Poland, offering road transport, warehouse and intercontinental freight services, including airfreight. The Subcarpathia branch is Dachser’s ninth location in Poland, and located near Rzeszów-Jasionka Airport and the A4 highway. BRUSSELS Airlines will add five flights a week to Montreal, Canada from 29 March, and discontinue Toronto services from 7 January. Flights to Washington DC will become a year round service from 20 February, having previously been a summer destination only. SAS will relocate Los Angeles flights from Stockholm Arlanda to Copenhagen from 13 January, using an Airbus A340 on the route. The route will operate six times a week until 31 March, when it will become a daily service. AIR Canada will start year-round flights between Toronto and Brussels on 1 May, operating a Boeing 787-8 Dreamliner five times a week. QATAR Airways will launch services to Luanda, Angola in March 2020. The service will operate five times a week using a Boeing 787 Dreamliner from Hamad International Airport. BASTIAAN de Bruijne has joined Airports Council International Europe as its general counsel, succeeding Gerard Borel, who is retiring in October. The Dutch national joins from Royal Schiphol Group. TWO people have died after a Convair CV-440F crashed and caught fire on the approach to Toledo-Express Airport, Ohio. The aircraft came down on the premises of a recovery and truck repair company one kilometre short of runway 25.

ACW 16 SEPTEMBER 2019

Freeports could boost UK’s regional gateways

ew legislation allowing the UK to set up freeports and freezones could boost British regional gateways after the country leaves the European Union, says the head of one of the country’s airport groups. Andrew Bell, chief executive of Regional & City Airports, which owns or operates Norwich (pictured), Bournemouth, Exeter, Coventry, Blackpool and Solent said that new rules allowing freeports to be established could be used to turn regional gateways into aviation hubs. He told a conference in London organised by Port Zones UK, a new coalition of British airport and seaport operators: “New port zones could be an opportunity to put UK regional airports to work. They have excess capacity and could be centres for skill development, help relieve pressure on London airports and help rebalance the UK economy.” Port Zones UK says that, if and when the UK leaves the European Union, the government would be freed of Brussels rules that currently prevent or severely restrict member states from operating freeports. Freeports and freezones offer exemptions from national VAT and duty rules. They could, for example, allow companies located in the zones to import goods from third countries, process them and re-export them without having to pay VAT or customs duty. However, Port Zones UK’s vision goes beyond this, envisaging a scenario in which ports and airports might also be freed of some of the more

restrictive land use planning legislation, allowing the UK to emulate Dubai, the US or China where freezones are widely established. It also suggests that seaports, airports and in some cases manufacturing sites could all be part of a wide-ranging freezone cluster covering large areas of the country. Grimsby and Immingham member of parliament and chair of the All-Party Parliamentary Freeports Group, Martin Vickers told the gathering that UK freeports could be targeted on high-unemployment zones, especially in the north of England and had the potential to create tens of thousands of jobs. The freezone concept does however have its critics from trade unionists and others who suggest that they could create havens for tax-avoiders. Vickers however dismissed suggestions that freeports were “a sinister plan to create tax havens”.

Turkish Cargo renews IATA CEIV for three years

urkish Cargo has renewed its IATA CEIV (Center of Excellence for Independent Validators) Pharma certificate for another three years. The certificate is valid until 2022 and was initially obtained in 2016. Training for the renewal was planned with the Turkish Airlines Aviation Academy and completed following audits by IATA.

aircargoweek.com

Handling procedures are implemented by dedicated teams at the 3,500 sq m special cargo storage facility. Turkish Cargo makes use of active temperature-controlled Envirotainer and CSafe containers, electrical air-conditioned Opticooler containers, thermal dollies and disposable thermal sheets equipped with thermal isolation features to minimise the risk of damage to medical products.

First air eBooking platform takes off

inotrans Global E-commerce Logistics has partnered with WebCargo by Freightos to introduce the world’s first direct to customer air eBooking platform. Shippers will be able to pull global contract rates, get dynamic pricing or request ad-hoc, receive instant booking confirmation from over 10 airlines integrated with Freightos, with the aim of growing Sinoair’s online shipments to many millions annually. Unlike existing eBooking platforms catering for the freight forwarding community, Sinoair offers benefits to agents and shippers. Liu Xin-Yang, deputy general manager of Sinoair says: “As Asia’s top air freight forwarder, we take our responsibility to provide a best-in-class air cargo experience for all our customers seriously. Freightos is our trusted partner enabling us to offer eBooking to all, something the air cargo industry has never seen before.” Zvi Schreiber (pictured), CEO of Freightos says: “eBooking is something passenger travel has experienced since the 1960s. Today Sinoair is introducing it to the air cargo masses looking for a 21st century air freight experience. It is an honour to work with such a forward thinking organisation with the courage to shift an enormous part of the air cargo industry online.”

WFS opens Copenhagen pharma hub

WORLDWIDE Flight Services (WFS) has officially opened its pharma facility at Copenhagen Airport. The handling agent’s footprint in Copenhagen measures 13,900 sq m when it commenced operations in another 4,700 sq m freight centre. The 1,500 sq m building provides handling in a temperature-controlled environment for 2-8C products covering acceptance, offload, pre-storage, build-up and storage for loose shipments and pre-built pallets. Upgrading existing temperature control areas will also meet demand for pharma products requiring 15-25C. Morten Mortensen, director of airline sales and route development at Copenhagen Airport says: “Pharmaceutical products are among the highest valued commodities to be carried by air freight and there are some very strict requirements to be met when it comes to temperature control, speed, stability and careful handling.” Dan Parker, senior vice president commercial cargo – EMEAA at WFS says: “By increasing our commitment, we hope pharma volumes still being trucked to other airports will now see WFS is offering a more local, high quality and cost-efficient solution and this will also contribute to the continued growth of the airport.”

Old Words

A look back at old editorial comments that were once a feature of Air Cargo Week

here is a possibility that the Airbus Industrie 3XX project will soon blossom into reality and produce not just a bigger-sized aircraft for the passenger industry but a much bigger leviathan to provide an increased capacity for the airfreight market as well. With Singapore Airlines and Emirates among the first carriers to have indicated more than a positive interest, the salesmen and the project development people in Toulouse will be hoping that the floodgates are about to open on firm orders for the 150tonne capacity aircraft. The A3XX will be able to uplift 150 tonnes of airfreight at a bite, but it will not be able to handle the one-piece, 100-tonne heavyweight chunks that the Antonov 124 accommodates with ease.

Ian Martin Jones, editor

5 June 2000

aircargoweek.com

ACW 16 SEPTEMBER 2019

C$30 million upgrade for Winnipeg airport cargo facilities OVER C$30 million will be invested in upgrading air cargo capacity at Winnipeg James Armstrong Richardson International Airport. The C$30.4 million investment at the airport serving Manitoba province’s capital city will cover the construction of a 13,000 sq m logistics facility including space for cold storage and perishable commodities, live animal handling, expanded cargo capacity and additional space for aircraft. The government department, Transport Canada says this will benefit multiple industries, particularly e-commerce, agricultural livestock, pharmaceutical, nutraceutical and the aerospace sectors. It will also

improve efficiency and affordability of transport out of Winnipeg to remote and northern communities. The project will be financed by the government of Canada and will create an estimated 630 jobs during the construction work. Doug Eyolfson, member of parliament for Charleswood – St. James – Assiniboia – Headingley says: “Transportation systems are a vital part of Winnipeg’s economy and the federal investment announced here today will foster long-term prosperity for the city. These improvements to the Winnipeg James Armstrong Richardson International Airport will help businesses and producers get more

products to market.” Marc Garneau, minister of transport says: “Our government is investing in Canada’s economy by making improvements to our trade and transportation corridors. We are supporting projects to ef-

ficiently move goods to market and people to their destinations, stimulate economic growth, create quality middle-class jobs, and ensure that Canada’s transportation networks remain competitive and efficient.”

Geopolitical tension hits Cathay Pacific “GEOPOLITICAL tensions” affected Cathay Pacific’s cargo traffic in August, said the Hong Kong carrier in its latest monthly traffic statement. In what group chief customer and commercial officer Ronald Lam described as “an incredibly challenging month, both for Cathay Pacific and for Hong Kong”, Cathay Pacific and Cathay Dragon carried 161,394 tonnes of cargo and mail, a drop of 14% compared to the same month last year. The cargo and mail load factor fell by 7.5 percentage points to 60.9%. Lam said: “Tonnage further deteriorated month-onmonth across all regions, driven in particular by slow demand over the holiday season in different parts of the world, the effects of tropical storms and disruptions at Hong Kong International Airport. Ongoing geopolitical tensions continued to affect overall market sentiment.”

Greenville opens $33m cargo hub Greenville-Spartanburg International Airport opened its $33 million air cargo facility on Monday 9 September, capitalising on growth in the southeast USA. The 10,200 sq m cargo facility and its 17-acre apron allows the airport to accommodate up to three Boeing 747-400 Freighters simultaneously, tripling previous handling capacity. German freight forwarder Senator International will lease half of the facility to support Senator Atlantic Bridge flights from Greenville to Frankfurt-Hahn Airport with twice-weekly connecting services to Johannesburg, South Africa. Tim Kirschbaum, chairman and CEO of Senator International says: “Senator International is very proud to celebrate this new milestone and together with the South Carolina business community, the Greenville-Spartanburg Airport District, all our valued clients and business partners, we will continue to grow the air cargo operation here at Greenville-Spartanburg International Airport.” Senator’s location offers overhead cranes capable of lifting up to 20 tonnes and a Cyro Farm, used to cool specialist healthcare equipment.

In 2017, GSP launched Cerulean Aviation, supporting general aviation and fuelling as well as providing cargo services. Cerulean’s cargo services include on-airport cargo facilities, build-up and break-down of cargo, bulk unitisation programme transfer, bulk and containerised aircraft loading and unloading, on-call charter cargo handling, customs documentation processing and aircraft refuelling. Pamela Evette, lieutenant governor of South Carolina says: “Moving cargo is an essential step in the supply chain and having the capacity to handle varying types of freight is an invaluable resource for business growth. This new cargo facility at Greenville-Spartanburg International Airport is one more step in our ongoing efforts to provide unmatched connectivity, ensuring that South Carolina continues to soar into the future.” Jacksonville, Florida-based Haskell designed and built the warehouse, WK Dickson of Charlotte, North Carolina was the cargo ramp engineer, and McCarthy Improvement of Davenport, Iowa was the contractor for the cargo ramp.

DELTA Cargo has picked Rob Walpole for the role of vice president – cargo operations and logistics, reporting to vice president Shawn Cole. Walpole joins from Dubai-based global port operator DP World where he served as chief operating officer – global logistics and supply chain. He has also served as chief executive officer of Schenker and worked in the energy sector with Exxon-Mobile. Cole says: “Rob has a strong operational

background and brings extensive leadership experience in the logistics and supply chain sector. We look forward to his contributions as we continue to build-on the record operational performance achieved in the first half of 2019.” Matt Weisenburg has joined the team as director – cargo strategy and alliances, and Mark DeFrancesco has been appointed managing director – revenue management, capacity and forecasting.

Rob Walpole joins Delta Cargo team

ACW 16 SEPTEMBER 2019

aircargoweek.com

Tabloid page bled.indd 1

16/09/2019 09:47

Tabloid page bled.indd 1

31/07/2019 12:47

Air cargo helps clear up after Hurricane Dorian strikes Bahamas

urricane Dorian has caused widespread damage across the Bahamas, and now it is moving on, aid is being flown in to help those in need. The Category 5 hurricane made landfall in the Bahamas on 1 September having caused disruption across the Caribbean since it formed on 24 August. After hitting Elbow Clay just east of Abaco Island, it made landfall on Grand Bahama before moving up the east coast of the US and heading up to Canada. On 5 September, American Airlines sent a Boeing 737 from Miami to Nassau, the Bahamas to deliver over six tonnes of relief supplies, and prior to the arrival of the storm, just under a tonne was sent to the islands. Delta Air Lines operated two relief flights to the Bahamas, one from Atlanta to Nassau and another from Fort Lauderdale to Marsh Harbour using MD-88s on Monday 9 September. On Sunday 8 September, Delta’s first relief flight departed Fort Lauderdale for Marsh Harbour with over two tonnes of critical supplies, before heading to Nassau with 72 evacuees. United Airlines launched a Crowdrise fundraising campaign on

Friday 6 September with donations supporting relief partners American Red Cross, Airlink, Americares and Global Giving. It will match the first $100,000 raised and provide up to five million bonus miles to individuals who donate $50 or more. The airline worked with Airlink to connect with non-governmental organisations and flew more than 25 relief workers, including a team of search and rescue experts from Empact Northwest to the Bahamas to help with the most pressing matters identified by the local government. The UPS Foundation has committed $1 million to Hurricane Dorian relief efforts and so far UPS has operated one charter flight. On 7 September, a humanitarian flight landed at Nassau’s international airport delivering 20 tonnes of aid including shelter, hygiene and water purification supplies provided by UNICEF and the International Federation of Red Cross and Red Crescent Societies. Amazon dispatched two freighters full of relief items such as traps, buckets and water containers in collaboration with the International Federation of Red Cross and Red Crescent Societies, Mercy Corps and the Grand Bahama Disaster Relief Foundation. The online retail giant is shipping relief items from fulfilment

aircargoweek.com

centres to Tampa where they are packed, palletised and transported to Nassau. Customers can also make cash donations, donate supplies directly to non-profit organisations for the Bahamas or saying “Alexa, donate to Hurricane Dorian relief at American Red Cross”. DHL has sent volunteers from its Disaster Response Team (DRT) to handle relief supplies to the Bahamas in the wake of Hurricane Dorian. Cargo delivered by the Red Cross in a wide-bodied charter aircraft were transported by the team to a World Food Programme warehouse for onward distribution to Freeport, Nassau and Abaco. So far, over 136 tons of goods have been dispatched by the DRT team, led by senior director operations Colombia, Gilberto Castro. Meanwhile, FedEx delivered over 56,000lbs of aid to the islands on a Boeing 757 Freighter flight from Memphis to Nassau. Team members loaded the plane with medicines and medical supplies, hygiene kits, water treatment systems and an International Medical Corps’ Mobile Health Facility. The relief effort is part of the company’s FedEx Cares Delivering for Good initiative, where the company uses its global network and logistics expertise to help organisations in times of disaster.

ACW 16 SEPTEMBER 2019

Corrado elected president of ATSG, Koharik named chief operating officer

Corrado THE board of directors at Air Transport Services Group has elected Richard Corrado as president, effective from 16 September. As president, Corrado, who has been chief operating officer since September 2017, will be responsible for goal-setting and oversight of all ATSG business. The board has elected Edward Koharik to succeed Corrado as chief operating officer, managing day-to-day operations for the majority of ATSG companies. Randy Rademacher, board chairman of ATSG says: “I know I speak for the board of directors in expressing confidence that Rich’s strengths in marketing, operations, and business development, backed by Ed Koharik’s operations experience and the continuing contributions and experience of the rest of our outstanding management team, will launch ATSG on an exciting new phase of sustained success, providing solid returns for our shareholders, exemplary service for our customers, and growth opportunities for our employees.” Since 2010, Corrado has extended ATSG’s business model known as A+CMI, allowing cus-

ACW 16 SEPTEMBER 2019

Koharik tomers to separate the aircraft lease from the crew, maintenance and insurance. He also recognised the growth of e-commerce and placed midsize, medium-range Boeing 767 Freighters at the centre of the express network. Koharik comes to ATSG after a military career with leadership experience with the US Transportation Command and operational and safety roles with FlightSafety. Commenting on his new role, Corrado, who was elected chief operating officer in September 2017 after seven years as chief commercial officer for ATSG subsidiary Cargo Aircraft Management says: “No other company in the world can compete with our bundle of services for midsize freighters, including leasing, air express operations, heavy maintenance, freighter conversions, and logistics services. I am eager to take on a new role as president to help leverage our exceptional assets and lead our dedicated employees to deliver even greater results for shareholders.” Joseph Hete will retain the position of director and chief executive officer of ATSG.

Avianca to connect Bogota with Dallas AVIANCA Cargo will start services between Bogota and Dallas Fort Worth with two flights a week from 2 October. The Airbus A330-200 Freighter service will transport various types of cargo with its independent temperature-controlled decks. The airline says it selected Dallas Fort Worth due to economic growth and its central location within the US facilitating distribution throughout the country. Kurt Schosinsky, general managing director of Avianca Cargo says: “We see great potential in this new route where we will handle mainly perishable cargo such as salmon and red fruits from Chile, flowers from Colombia, asparagus and mangoes from Peru and flowers and fruits from Ecuador. All these goods are in high demand in international markets.” John Ackerman, executive vice president

global strategy and development at DFW says: “Dallas Fort Worth International Airport is excited to announce this new cargo service as it represents new economic benefits for Dallas, Fort Worth, and the North Texas region. This new service represents a milestone for DFW as the first scheduled South American freighter that will further the Airport’s strategy for developing trade lanes between South America and Asia.”

Atlas Air renews lease for corporate HQ Atlas Air Worldwide Holdings has renewed and extended the lease on its Purchase, New York corporate headquarters. The plans include creating 100 additional jobs and enhancing the offices to accommodate its growing employee base and business growth. It has been its headquarters since 2000 and Atlas Air employs 568 employees in New York. Eric Gertler, acting commissioner and president and CEO-designate of Empire State Development says: “Companies are choosing to stay and foster growth in New York thanks to the state’s skilled workforce, favourable

aircargoweek.com

economic environment and robust business assistance programs, and Atlas Air’s expansion will bring 100 new jobs to the Mid-Hudson region while maintaining a thriving headquarters in Purchase.” William Flynn, chairman and chief executive officer of Atlas Air Worldwide says: “New York is our home and we are excited to strengthen our ties and expand our company in this dynamic, thriving state. We will continue to grow our team of talented, world-class, customer-focused employees in New York and throughout our global network.”

Sea lions fly to new home at Chinese theme park

erry Logistics has moved two sea lions from the UK to their new home at the Hainan Ocean Paradise theme park in Sanya, China. The logistics provider teamed up with Hainan-based Kerry EAS Logistics to ensure a swift journey, with Merlin and Reggie settling into their new homes within two hours of landing. Merlin from Brightlingsea, Essex and Reggie from Flamingo Land in Malton, North Yorkshire travelled to London Heathrow Airport in dedicated temperature-controlled vehicles. David Mallinson, general manager – UK air division of Kerry Logistics says: “Transhipment via any other European or Chinese airports was not in the animals’ interest, so we opted for a direct service, and the choice of aircraft (Airbus

UPS converts major US gateways into foreign trade zones

A330 – 200) that gave the guarantee of the hold temperature being regulated between two and eight degrees centigrade.” Veterinary processes were orchestrated within 48 hours of flight departure and after customs clearance, the animals were sent directly to the aircraft and loaded for the 11 hour 40 minute flight. Mallinson says Kerry Logistics checked all documents such as the European Health Certificates, Live Animal Packing Declaration and Import Permit for China were in order. He says: “Our team showed great flexibility and understanding in planning and executing this shipment. We look forward to receiving similar requests.”

UPS has converted four major US airport gateways into foreign trade zones (FTZ) and expanded its Zone Solutions services. Converting Chicago O’Hare, New York John F. Kennedy, Dallas Fort Worth and Los Angeles extends UPS’s FTZ-related capabilities beyond warehousing and distribution to help clients manage end-to-end processes from dealing with customs to inventory control. The Zone Solutions has been integrated and expanded within its customs brokerage, warehousing, logistics and transportation business. Jeff McCorstin, president of UPS Global Brokerage and Customs says: “Adding FTZs enables customers to streamline compliance validations to mitigate risk and promote savings on their international airfreight shipments by leveraging FTZ-designated gateway facilities.” The utilisation of the FTZ programme provides opportunities for duty elimination on exports and scrap, as well as duty deferral on foreign status inventory in an activated FTZ. Importers in industries such as consumer electronics tend to pay high duty rates when importing products. Foreign trade zones help reduce duties by using regulations to provide cost-savings through duty deferral, duty elimination, tariff inversion, fee consolidation and streamlined US Customs procedures.

Pilot fatigue likely cause of Cessna crash in Indonesia Pilot fatigue is the most likely cause of a fatal Cessna 208 Caravan crash in Papua, Indonesia on 12 April 2017. The Cessna, which first flew in 1991 and was operated by Spirit Avia Sentosa was carrying 1.2 tonnes of cargo between Tanahmerah Airport and Oksibil Airport. It took off at 11.44h and was due to arrive in Oksibil at around 12.24h but its last recorded position was an emergency signal six nautical miles north of its destination. The aircraft was found the next day on a ridge of Anem Mountain. The investigation says that two days prior to the crash, the pilot, who was the only person on board travelled on a night commercial flight and this may have resulted in sleep disturbance. Prior to the fatal journey, the pilot had flown for three flight sectors with a total of 2 hours and 55 minutes of flight hours. Based on the final flight track, the absence of voice communication, weather conditions and aircraft wreckage, there were no pilot activities about 29 nautical miles north of Oksibil until the impact. The National Transportation Safety Committee of Indonesia report concludes that the pilot inadvertently fell asleep, and this caused the crash.

aircargoweek.com

ACW 16 SEPTEMBER 2019

EUROPEAN CARGO

Global challenges bring opportunities

lobal issues are affecting air cargo but Stephen Dawkins sees opportunities in the market, the CEO of Air Logistics Group tells Air Cargo Week. He admits that the first half of 2019 has been challenging with unpredictability continuing with factors such as Brexit, trade wars, currency volatility and economic tensions. While Dawkins does not see these factors being resolved in the short term, the current market situation offers opportunities for GSSAs. Dawkins says: “Airlines see outsourcing of cargo as a sensible option in terms of cost saving and incremental revenue – they are looking for partners that are reputable, financially sound and can deliver in terms of revenue, network coverage and business intelligence.” Air Logistics Group has an extensive network, with a presence in most European markets. Dawkins says Germany and Italy remain the strongest European markets but they have seen considerable drops in the first six months of 2019. He adds that France, the Netherlands and United Kingdom are stable while the Nordics, Spain and CEER are good when online stations are slow. The network covers 88 offices and 48 countries globally, and is open to expansion into new markets where its services are required. Dawkins says: “If a current airline partner opened a new route or a new partner needed our services in a different territory, ALG would definitely consider it. However the majority of airlines operate from the key hubs across Europe where our offices are already located.” With 25 years of experience behind it, Air

ACW 16 SEPTEMBER 2019

Logistics Group has a well-respected network of air cargo professionals in Europe. Dawkins says: “ALG professionals provide airlines with a variety of solutions, across the spectrum of cargo that will improve airline cargo revenues whilst keeping costs under control.” The team are helped by Europe being a strong area for logistics. Dawkins says: “It is clear that Europe is the world’s most dynamic continent in terms of logistics. Major motorways, major warehouse infrastructure, large trucking companies and thousands of intra-European flights ensure cargo moves swiftly and freely 24/7.” Dawkins sees continued consolidation and customers demanding additional services such as business intelligence, fiscal or IT solutions. The booming e-commerce market is likely to cause airlines to ask their GSSAs for more digital solutions. He says: “Airlines and their suppliers will need to continue to evolve to deliver on the demands

of the large e-commerce companies that bring huge influence into the airline cargo industry. The airlines that have invested into e-commerce will be the ones that are the market leaders over the coming years.” GSSAs also need to answer some important questions, such as how to optimise airline networks and capacity, managing cargo demand on passenger routes, digitalising the business, and how to provide airlines with the best business intelligence. Dawkins says: “These are all opportunities to be seized upon and we are making significant investments in these innovations.” Air Logistics Group is embracing the challenge of digitalisation head on. Dawkins says: “ALG has invested significantly in IT and back office functions over the last ten years to offer a cost effective solution to airlines in a multitude of cargo fields such as sales, revenue accounting, trucking management and business intelligence.”

aircargoweek.com

Grey power stops Stansted plans A trade union is blaming a local council dominated by “retired and affluent” local residents for the lack of progress on expanding London Stansted Airport. The Unite union has strongly criticised Uttlesford district council for its U-turn over its previous decision to support expansion of the gateway and instead refer it back to its planning committee. Regional officer Mark Barter complained: “It appears that Uttlesford district council has now been effectively taken over by a residents’ committee.” Unite says that the council’s planning committee last November provisionally approved the application to increase the numbers using Stansted from 35 million passengers annually (for which there is already permission) to 43 million. However, in May, the Residents for Uttlesford group took control of the council and it has now decided to refer the original decision back to the planning committee which is expected to meet this autumn. Barter added: “This U-turn demonstrates that the new-look council has little or no concern for ordinary working people who rely on the many jobs that Stansted creates. “The council has been advised throughout the process by independent planning lawyers, who have confirmed that there is no reason to not grant permission. Yet there is still delay, so the council’s decision is particularly disappointing given that so many new jobs are reliant on the airport’s growth.”

EUROPEAN CARGO

Intra Europe remains strong while Brexit demand waits to be released INTRA Europe demand has been strong for HAE Group despite Brexit’s best efforts, according to John Ward, director of UK & Ireland. Ward tells Air Cargo Week that business is up 10-15% year-on-year with the UK and Ireland offices working with agents in mainland Europe. The key trade lanes are North America, Africa and the Middle East. From Europe, through a partner network, the demand is to the Middle East and Africa, and project business. He comments: “The current Brexit uncertainty has led to an amount of pent up demand that has not been released as yet, however, on intra-European cargo demand has remained strong.” HAE Group advertises itself as a multi-platform service provider, and customers in the European Union are offered transit services via the UK including interline, screening/handling and customs services. Ward says: “HAE’s edge is that customers can transit cargo through our facilities, have them rescreened and then delivered back to UK based airlines.” Customers are offered HAE’s flagship GSSA services business, which is facilitated where clients do not have partner agents or third party service providers for the whole supply chain. Ward says HAE is also a specialist in off-network activity, adding additional services to airline partners. He says: “We also constantly review pricing and available capacity with our airline partners to try to make sure they are the

carrier of choice for every shipment we can – we can do this through our bespoke web portal, which allows for dynamic pricing in conjunction with the carrier.” HAE Group has offices in the UK and Ireland but is looking to grow. Ward tells Air Cargo Week: “We have a couple of potential acquisition targets under review in the Benelux area which is a useful hub for our brokerage type activity and gives us an ability to connect to most of the major EU gateways.” There are challenges in the European market, but HAE Group is always looking to overcome them. Ward says: “The ad-hoc nature of much of the general cargo means that dynamic pricing and current available capacity to meet demand will be the biggest challenge. This is also the biggest opportunity. The GSSA model can be a very manual process when it comes to the sale so our strategy is to automate and connect the various parties together.”

PostNord to establish logistics centre at Landvetter airport

andvetter Logistik Center has signed an agreement with PostNord to establish a logistics centre at Airport City Göteborg. PostNord, the holding company of Swedish postal operator Posten and its Danish counterpart Post Danmark will lease the entire property from the property developer jointly owned by Bockasjö and Swedavia. The first phase of the project at Gothenburg Landvetter Airport comprises of 20,000 sq m and will be ready for occupancy on 1 June 2020, with the remaining section scheduled to be ready in autumn 2020. The property will be certified as a green building with low energy consumption, and measures will be taken to install solar panels. Joakim Hedin, CEO of Bockasjö and CEO of Landvetter Logistik Center says this is the third project with PostNord and the fifth with the PostNord Group. He says: “The project also represents an

Licht joins Celebi

important milestone in the development of Airport City Göteborg. We are constructing the third logistics building in the area, which means the airport city’s first logistics park is now up and running.” Mårten Koshko, business development manager of PostNord says: “We have a close collaboration and good experience working with Bockasjö when it comes to new construction. Landvetter Logistik Center was the firm that could fulfil our requests in terms of the property size and timetable.” sation, the ground handling agent selection process and sustainability of contractual terms.

CHRISTOPHER Licht will take up the role of chief operating officer of Celebi Cargo Frankfurt, starting on 16 October. Licht joins from Kuehne + Nagel where he was regional gateway handling manager for Europe. His main responsibilities will be to ensure operational performance and quality optimi-

aircargoweek.com

ACW 16 SEPTEMBER 2019

USA GSAs

A whole New World for GSAs

he US is something of a terra incognita as far as general sales agency is concerned, says local country manager at ECS Group, Francisco Hernandez. “In my eyes, the GSA markets in the US are in a very primitive stage compared to the

ACW 16 SEPTEMBER 2019

rest of the world. There are still many untapped opportunities for airlines to utilise the GSAs’ full potential,” he explains. They can offer much more than a simple sales outlet: “The GSA industry will continue to expand as we see airlines lean on their partners for market-specific intelligence and technology. Airlines will continue to focus on their core business and utilise their partner’s expertise to guide them and properly manage capacity, consistency, and profitability. And airlines continue to outsource more and more services.” Many possibilities for cargo and agent expansion are available away from the main traditional gateways, Hernandez believes. Airlines and GSAs with strong road feeder networks have been able to expand away from major airports and use less expensive options to benefit both the carriers and the agents providing new route alternatives at lower cost. “We would like to see this trend expand and continue its development,” he adds. The US market still has a lot of potential, not only for the GSAs but for forwarders, says Hernandez: “Worldwide consolidation of for-

warders and offices continues as top players look for expansion and growth.” Furthermore, forwarders will look to GSAs as an option, not only for excess capacity, but as the main source of incremental revenue opportunities. Prospects for the ECS group are exciting, he adds: “We have invested heavily in a robust team to cater those individual needs and feel very much ready for the future ahead.”

aircargoweek.com

There are some clouds on the horizon, though. Trade wars remain “a very, very sensitive subject” as they have been throughout 2019 and US to China trade airfreight is down by almost 25% in the year to date and it remains a very volatile market. With China being such a strong part of the airfreight business in recent years, any shift in demand has a major effect on the market’s overall strength and on yields.

TRADE&EVENTSFINDER Airlines

GSSAs

Turkey

United Arab Emirates

Intâ€™l Logistics Denmark

Freight Forwarders Hong Kong

Freight Forwarders

USA

United Kingdom

Video Broadcasts

aircargoweek.com 11_16/09/19.indd 1

ACW 16 september 2019

11 12/09/2019 16:55

THE MAN WHO KNOWS THAT FROM LITTLE ACORNS .....

How a publicity stunt created the global airfreight industry

Readers of Air Cargo Week involved in airfreight can trace the whole industry back to an unlikely event 110 years ago which was the beginning of the multi-million dollar business we know today

n November 1910, there was growing inter- store; a place to make women feel pampered est in the new-fangled heavier-than-air will give them reason to stay in the store.” Morehouse realised the potential for shipping machine, just shy of seven years from the Wright Brothers’ historical flight at Kitty goods by airplane after reading about aviation pioneer Glenn Curtiss’s successful flight from Hawk, North Carolina on the US East Coast. In a short time, flying had started and aircraft Sandusky, Ohio, to Cleveland, Ohio. Morehouse were developing at a rate of knots as any new dreamed up a stunt to deliver silk from the technology does. Newer models were already wholesaler to his store in Columbus by aircraft. quickly outpacing many early examples of rick- The alternative would have been by railroad or ety aircraft. But many later developments we horse-drawn cart. Even pick up trucks were in take for granted, such as scheduled passenger the future. In fact, it was not until services, were still in the 1917 that Ford produced future. what may be considered the However, interest in the first pickup truck made in new mode of transport was America — the Ford Model intense and created many TT. column inches in the world’s Morehouse went to the newspapers. One such report go-to aviation pioneers, caught the eye of Max Morethe Wright Brothers, to house, president of the organise a pioneering and retailer Morehouse-Martens headline-grabbing flight. Company of Columbus, Ohio. Their aircraft company Companies like Morehouse was barely a year old that were always on the lookout year, having been formed in for innovative gimmicks to 1909. create publicity and bring He would arrange for 10 customers into their stores bolts, 200 lbs of silk from and what could be better than Elder & Johnston, a wholehaving your name attached saler in Dayton, to be flown to a flying adventure? 65 miles to his store’s home His store had been Morehouse-Martens city of Columbus. Roy Knabenrenamed Morehouse-Martens just two years before. It was a favourite of shue, general manager of the Wrights’ exhibition Columbus’ carriage trade and was known for its department, arranged a contract between the Morehouse-Martens Company and the Wright high-end merchandise. Morehouse-Martens also operated the first Company, under which the latter agreed to furprofessionally staffed beauty salon in Columbus. nish a plane and pilot for a fee of $5,000, worth When asked by her husband how she thought some $140,000 in modern money. This exorbitant cost was more than recouped he could increase the foot traffic in the store, Imogene Morehouse reportedly replied, “The as the silk was cut into pieces and attached to merchandise gives them a reason to come to the commemorative cards after the flight for sale in

Wright Model B

Wright brothers in 1910 near New York the store as a souvenir. On November 7, 1910, a Wright Model B airplane piloted by 23-year old Philip Orin Parmalee carried ten bolts of the fabric from Dayton, Ohio, to Columbus, Ohio. Parmalee completed the journey from Dayton’s Huffman Prairie Testing Ground to the Driving Park in Columbus in just 71 minutes, a world speed record at the time.

Magnificent men in their flying machines

It was also the first commercial flight anywhere in the world and drew a great deal of publicity from as far away as London and Paris. His route took him by way of South Charleston and London, Ohio, following the old National Road. Parmelee was very much an aviation pioneer. His achievements included the first commercial

aircraft flight, a world cross-country speed record, the world flying endurance record, piloting the first aircraft to drop a bomb, conducting the first military reconnaissance flight and piloting the first aircraft involved in the world’s first parachute jump.

What happened next?

Wilbur Wright died in 1912, and on October 15, 1915, Orville Wright sold the company, which in 1916 merged with the Glenn L. Martin Company to form the Wright-Martin Company. Morehouse died in on Feburary 4, 1923 aged 57 in Baltimore City, Maryland. Parmelee was killed in 1912 while piloting an aircraft when turbulence flipped it upside down. In 1951, Morehouse-Martens merged with The Fashion, under the auspices of The Allied department store chain to become Morehouse-Fashion. In 1963 the name reverted to The Fashion. At that time, the store was located directly across from rival retailer F R Lazarus. The Fashion and Lazarus would be competitors for decades, ultimately located across High Street from one another, until The Fashion closed in 1968.

aircargoweek.com