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The weekly newspaper for air cargo professionals No. 1,023

18 March 2019

Meet the Chief Encouragement Officer

IATA sets out industry’s priorities

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he International Air Transport Association (IATA) has called on governments and the air cargo industry to focus on modernisation, global standards and open borders. Director general and CEO Alexandre de Juniac made the call during the opening address at the 13th World Cargo Symposium in Singapore on Tuesday 12 March. The operating environment for air cargo is increasingly challenging, with growth slowing to 3.5% in 2018, significantly below the extraordinary growth of 9.7% in 2017. Weakening global trade, sagging consumer confidence and geopolitical headwinds contributed to a general slowdown in demand growth commencing in mid-2018, with January 2019 seeing a contraction of 1.8%.

INSIDE DG AUTOCHECK FOR AFKL

AIR France KLM Cargo has become the first airline group to adopt the IATA Dangerous Goods AutoCheck for the acceptance of dangerous goods ... PAGE 2

“I challenge stakeholders to drive change” IATA is calling for modernisation of industry processes to efficiently meet the doubling demand expected over the next two decades. The four focus areas are global implementation of the e-AWB, universal adoption of a common data language – Cargo XML standards, smart data sharing and use of performance data. Cargo facilities also require modernisation, with de Juniac saying the e-commerce world is looking for fully automated high-rack warehouses with autonomous green vehicles navigating through the facility. He says: “The problem is not technology. The problem is the speed to market. It’s exceptionally tough to drive change in a global industry with a huge number of stakeholders where safety is top priority. But it is not

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mission impossible. I challenge stakeholders to find ways to drive critical change at the speed our customers expect.” To improve global standards, de Juniac highlighted safe transport of lithium batteries, saying they are being ignored by rogue shippers and governments are failing to enforce the rules.

Enforcement

He says: “In some cases, we see more effort going into stopping counterfeit production of Louis Vuitton bags than lithium batteries. Both need attention. But lithium batteries are a safety risk. And we need governments to do better at enforcement.” Global agreements to make trade

simpler, cheaper and faster are required, with IATA calling on governments to implement the World Trade Organization’s Trade Facilitation Agreement, the Montreal Convention 1999 and revisions to the Kyoto Convention of the World Customs Organization. IATA is calling on governments to keep borders open to trade, saying that protectionism, trade friction, Brexit and anti-globalisation rhetoric are a real risk to business and global economies. He says: “We need to be a strong voice reminding governments that the work of aviation—including air cargo—is critically important. Trade generates prosperity. And there are no long-term winners from trade wars or protectionist measures.”

CEIV FRESH LAUNCHED

IATA has launched the CEIV Fresh certificate, with Hong Kong International Airport being named the first certified community ... PAGE 3 737 MAXS GROUNDED

THE US Federal Aviation Administration has ordered the temporary grounding of Boeing 737 MAXs operated by US airlines or in US territories ... PAGE 4

THE LEADING CARGO HUB

GROWTH may be subdued at Hong Kong airport due to restricted freighter capacity, but Wilson Kwong remains confident about the future ... PAGE 10

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Kingfisher plans to launch ‘King Cargo’

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hairman and managing director of India’s Kingfisher Airlines, Vijay Mallya, has outlined plans to launch an air freight (sic) division - King Cargo - as soon as the carrier has consolidated its position in the country’s domestic passenger market. Mallya said Kingfisher will be in this position by May this year - the completion of the airline’s first year in business- by which time he intends to have 100 flights a day in the air. Mallya was speaking to journalists in Kuala Lumpur at the second Annual Asia Pacific & Middle East Aviation Outlooks Summit 2006, which had recognised Kingfisher with an award as the ‘Best New Airline of the Year 2005.’ He said Kingfisher’s Airbus fleet “already offers a big cargo capacity and we also plan to lease freighter aircraft”. According to Mallya, the growing amount of trade between India and China and an annual growth rate in the country’s domestic business cargo business that was surpassing the 20 percent (sic) mark, providing “a compelling reason” to consider entering the air freight market.

Did you ever fly on Kingfisher? If so, share your memories with ACW readers. Contact the editor:

Vijay Mallya in 2010

james.graham@ azurainternational.com

Photo: Franciscojuanlago

Quote of the week

“Awards like this are directly attributable to our terrific workforce. I’m just the Head Cheerleader. The best boss I’ve ever had taught me, years ago: “if the leader takes care of his troops, the troops will take care of the mission.” Steve Townes, chairman and CEO, ACL Airshop, talking about his Business Hall of Fame honour and what makes a good boss.

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ir France KLM Cargo (AFKL Cargo) has become the first airline group to adopt the IATA Dangerous Goods AutoCheck for the acceptance of dangerous goods shipments. The DG AutoCheck is a digital solution for accepting dangerous goods by checking the compliance of the Shipper’s Declaration for Dangerous goods against all relevant rules and regulations in the IATA Dangerous Goods Regulations. Optical character recognition technology transforms the paper DGD into electronic data. DG AutoCheck can also receive electronic Shipper’s Declaration for Dangerous Goods (e-DGD), with data being processed and verified automatically using the digital version of the DGR. The DG AutoCheck also facilitates a ground handler or airline’s decision to accept or reject a shipment during the physical inspection stage by providing a pictorial representation of the package with the marking and labelling required for air transport. Staff can check prerequisites for accepting lithium battery shipments have been met. Due to increasing transportation and the difference in type, packaging and safety hazard of these batteries, the DG AutoCheck has a distinct added value in safety and efficiency. Marcel de Nooijer (pictured left with Alexandre de Juniac), executive vice president of Air France KLM Cargo says the group handles 173,000 shipments requiring dangerous goods handling. He says: “DG AutoCheck provides a digital solution to more effectively manage the transport of dangerous goods by air for

our customers while at the same time enhancing safety and compliance. “It is another significant step in AFKL Cargo’s commitment towards a digital transformation of the air freight business model, and we will work closely with our ground handling partners to expand the use of DG AutoCheck beyond our hubs.” Frederic Leger, director airport, passenger, cargo, security products for IATA says: “To ensure that the industry is ready to benefit from this growth, modern and harmonised standards that facilitate safe, secure and efficient operations, particularly in relation to the carriage of dangerous goods, need to be implemented. “In becoming first adopters of DG AutoCheck Air France KLM Cargo are leading the way among their peers in the digital evolution of the dangerous goods supply chain and setting themselves up for future success.”

Cargo iQ trials solution for SME freight forwarders CARGO iQ has successfully trialled a Small and Medium Enterprise (SME) Solution to improve planning and control options for SME forwarders who work with member airlines on a small-scale or regional basis. The SME Solution will enable a route map and status updates to be made available to the forwarder for individual consignments in line with the common business practices and milestones set out in Cargo iQ’s Master Operating Plan (MOP). Chris Davies, manager product and technology at Cargo iQ says: “With Cargo iQ SME, we provide a turn-key solution for independent freight forwarders to benefit from shipment planning and control through shared Route Maps and operational visibility for various milestones along the shipment lifecycle.” After registering with an accredited Cargo iQ SME IT service provider, forwarders can benefit from Cargo iQ performance management tools straight away. The trial started with CCS Italy using Riege Software’s back-end Cargo Data Management Platform technology. Gianni Mauri, senior consultant at CCS Italy says: “Taking part in Cargo iQ’s SME Solution trial is a great opportunity for CCS Italy to demonstrate how independent freight forwarders can work with air cargo carriers to benefit the overall air cargo industry.” An official launch date for the solution will be announced in the coming months, following an evaluation of the trial phase. Forwarders that join the portal will have the option to apply for

JETTAINER has welcomed American Airlines Cargo as a customer for its ‘Cool Management’ system, giving the airline access to the ULD provider’s Cool Center of

full Cargo iQ membership to benefit from additional performance reporting, benchmarking, collaboration and insights. Davies says: “Upgrading allows smaller freight forwarders to put the Cargo iQ stamp of approval next to their names after a vigorous audit and certification programme, and provides access to other tools, such as our member-only door-to-door Performance Management System.” The door-to-door solution allows members to measure the movement of freight from shipper to consignee, and has also been developed based on the MOP. It provides implementable business rules and use cases to track and measure shipments, operational visibility in real time on an individual House Air Waybill basis, as well as metrics based on pickup and delivery performance.

Excellence in Abu Dhabi. After a successful test run, the centre has been managing the entire fleet of American Airlines Cargo’s reefer containers. The ‘Cool Management’ service includes leasing, managing and position as well as

Have you voted yet?

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oting is open for the ACW World Air Cargo Awards 2019. Voting is secure, confidential and restricted to readers of Air Cargo Week and ACWDigital, plus other bona fide members of the worldwide air logistics community. All votes must be cast online using the official voting form on the website.

ACW 18 MARCH 2019

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Air France KLM embraces DG AutoCheck

Jettainer keeps cool

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Categories are - Airfreight Forwarder of the Year 2019; Air Cargo Handling

Agent of the Year 2019; Air Cargo Charter Broker of the Year 2019; Airport of the Year 2019; Air Cargo GSA of the Year 2019; Air Cargo Industry Customer Care Award 2019; Air Cargo Industry Achievement Award 2019; IT for the Air Cargo Industry Award 2019; Air Cargo Industry Marketing & Promotional Campaign Award 2019; Cargo Airline of the Year 2019.

Voting closes on Tuesday 30 April, 2019

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process-related monitoring. Carsten Hernig, managing director of Jettainer says: “With our expertise in global ULD management, we can help increase efficiency between all supply chain participants in this process as well.”

www.aircargoweek.com/awards-voting/


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IATA launches CEIV Fresh certificate

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he International Air Transport Association (IATA) has launched the CEIV Fresh certificate, with Hong Kong International Airport being named the first certified community. The accreditation was pioneered by the airport, with Airport Authority Hong Kong (AA) working closely with members of the airport community including Hong Kong Air Cargo Terminals, Cathay Pacific Services Limited and Cathay Pacific. The two cargo terminal operators, who have cold rooms for perishables including seafood, fruit and vegetables, and frozen meat have achieved IATA CEIV Fresh certification. Their staff training and handling processes have been assessed and certified for their compliance with the global industry standards. Hong Kong-based carrier Cathay Pacific is expected to complete validation of the certification later this year. A ceremony was held in Singapore at the IATA World Cargo Symposium on 12 March, with Alexandre de Juniac, director general and CEO of IATA presenting recognition to Fred Lam, CEO of AA and to representatives from Hactl and CPSL. Lam says: “We are delighted to be the first airport community worldwide recognised by IATA under the IATA CEIV Fresh programme, which is a big encouragement to and affirmation of the capability of the Hong Kong airport community in handling perish-

CEIV Pharma for DFW

DALLAS Fort Worth International Airport has been awarded Center of Excellence for Independent Validators (CEIV) in pharmaceutical logistics by the International Air Transport Association (IATA). The Texan airport adopted the community approach for the certification process by assembling logistics partners specialised in ground handling, trucking, cold storage/warehousing and freight forwarding. The certification for the logistics partners involved training, pre-validation assessment, audit and validation. The founding members of the CEIV community are dnata cargo USA, SCL Cold Chain, B.I.G. Logistics and Expeditors. John Ackerman, executive vice president of global strategy and development at DFW Airport says: “The collective efforts of our partners to earn the CEIV Community certification demonstrates DFW’s level of commitment to a world-class pharmaceutical handling operation that provides pharma manufacturers and shippers with confidence that their high-value products will be handled with quality, care and efficiency.” The airport’s cold chain facility operates 24/7 with capabilities for pharmaceutical freight. The 37,000 square foot space has two pharma chambers, three multi-temperature zones and a 15,000 square foot area for airside refrigeration. Additional features include a refrigerated dock with truck doors, dry cargo space and a certified customs screening facility for imports and exports. Glyn Hughes, global head of cargo at IATA says: “We applaud DFW for its commitment to building a CEIV Pharma community through which it has met the industry’s global quality standards that ensure pharma products will be handled in a safe and reliable manner.”

Airway Bill’s

PAYCARGO has signed an agreement with the International Air Transport Association to jointly offer a payment and settlement system, IATA-PayCargo System. Customers will benefit from the ability to make fast, online payments as well as have immediate access to settlement data. The partnership marks an expansion of an agreement that began in 2017 when Cargo Network Services agreed to offer the PayCargo-CNS System to customers in the US.

able products.” In 2018, HKIA handled over 380,000 tonnes of perishables, accounting for 8% of total volumes, and a 12% increase from 2017. Glyn Hughes, IATA global head of cargo says: “Shippers can have peace of mind knowing that every entity handling their goods is operating to the same standards. Understanding the value of this to the success of its customers, the Airport Authority Hong Kong pioneered the world’s first CEIV Fresh certified airport community.”

Billing with blockchain

CARGO Community Network (CCN) has partnered with Microsoft to introduce the world’s first blockchain-based air cargo billing, costing and reconciliation system. Launched at the 13th IATA World Cargo Symposium in Singapore, the system aims to transform the air cargo billing process, minimise discrepancies, accelerate reconciliation and provide near real-time revenue recognition. CCN’s blockchain-based air cargo billing, costing and reconciliation system was launched following a hackathon organised by Microsoft and CNN, and a two-month proof-of-concept involving airline partners and freight forwarders such as Singapore Airlines, SATS, Alliance21 and Bollore. Using Microsoft’s blockchain service on Azure, CCN is now able to deliver a single immutable source of information for air cargo shipment rates, shipment details and billing processes via blockchain, with real-time updates provided by stakeholders. Teow Boon Ling, CEO of Cargo Community Network says: “The typical air cargo billing, costing and reconciliation process can involve many stakeholders along the entire supply chain. These processes are also very manual, manpower-intensive and prone to error. “By using blockchain on Microsoft Azure, not only does this shorten the billing cycle from up to three weeks to a matter of hours, it can also reduce discrepancies, while enabling greater accountability and visibility across the entire supply chain.” Kevin Wo, managing director of Microsoft Singapore says: “By using a robust, blockchain on Azure hybrid cloud set-up with high availability, Cargo Community Network is well-positioned to help airlines and freight forwarders to be quicker and more efficient with their billing processes, which can translate into tangible value-add for the industry across the board.”

Page 3 250kW of power, they accelerate from 0-62mph in 2.8 seconds and have a top speed of 174mph, and drivers can gain an extra 25kW by driving off the racing line and through a special Activation Zone. DHL has been on board with Formula E since it was founded in 2013, a year before the first race, and has extensive experience in motorsport logistics including Formula 1. Under Deutsche Post DHL Group’s Mission 2050, it set the goal of reducing logistics-related emissions to zero by 2050 including electric mobility vehicles.

FRAPORT will co-operate with Frankfurt-based logistics start-up lab HAUS61 to develop innovations for the air cargo industry. The lab will provide a network for regional start-ups and established companies to promote creativity and new ideas. Workshops will provide practical advice, while pitch meetings will offer space for sharing feedback and exchanging ideas. HAUS61 was founded by software company CargoSteps, which provides services such as a solution for tracking consignments for courier drivers. DON Colleran has been appointed president and chief executive officer of FedEx Express, taking up the role on 16 March. He has been with FedEx for almost 30 years, holding various executive level positions in several operating companies and international regions. Colleran began his career as an international sales manager in Philadelphia, and was most recently executive vice president and chief sales officer of FedEx Corp. Jill Brannon will succeed Colleran. AIRCRAFT operating lessor Aviation Capital Group (ACG) has promoted Tom Baker to executive vice president and chief revenue officer. His role will integrate ACG’s customer services and develop new growth opportunities by closer alignment among the sales/ marketing, trading and technical teams. The chief commercial officer position held by Andy Mansell has been eliminated. EMIRATES will add a second daily flight to London Stansted Airport on 1 July using a Boeing 777300ER. The second daily flight, EK67 will depart Dubai at 14.15h and arrive at Stansted at 18.45h. The return flight, EK68 will leave Stansted at 21.10h and arrive in Dubai at 07.10h the next day. The additional flight will double cargo capacity, offering 40 tonnes to facilitate trade and benefit local businesses. JIM Pradetto will succeed Gary Stover as president of Air Transport Services Group subsidiary, LGSTX services when the latter retires on 12 April. LGSTX provides material handling equipment and conveyor services, facility maintenance services, aviation ground support equipment, and distribution to customers in more than 400 locations worldwide. AIR Canada Cargo will start daily year-round services between Toronto and Vienna, Austria on 29 April using a Boeing 787-9 Dreamliner. Flight AC898 will leave Toronto at 18.25h and arrive in Vienna at 08.30 the next day. Flight AC899 will depart Vienna at 10.40h and land in Toronto at 13.30.

Formula E is more than an electric dream FORMULA E celebrated its 50th race, coinciding with founder global logistics partner DHL’s 50th anniversary. The 50th race was held on Hong Kong on 10 March, and won by Edoardo Mortara after Sam Bird was given a five-second time penalty for colliding with race leader Andre Lotterer on the last lap, causing a puncture and the German’s retirement. The futuristic looking 2018/2019 season cars have twice the battery capacity of their predecessors, eliminating the need to change cars mid-race. With

ACWBITES

Arjan Sissing, senior vice president corporate brand marketing at DHL says: “As both a highly exciting and future-oriented racing series, Formula E is synonymous with the combination of innovation and advance in motorsport in the same way that Deutsche Post DHL is in the field of logistics. “Other sectors, including the transport and logistics industry, are also benefiting from the technical developments being driven forward in Formula E in the area of electromobility.”

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ALL Nippon Airways will take delivery of its first Airbus A380 on 20 March. The first of three A380s on order will depart Toulouse, France for Tokyo’s Nartia airport. The A380 will enter service on 24 May, flying between Narita and Honolulu, Hawaii. HAINAN Airlines has extended its international network with flights from Shenzhen to Dublin, Ireland and Tel Aviv, Israel. Dublin flights were launched on 25 February, using a Boeing 787. It is the airline’s second direct flight to Ireland. The Tel Aviv service started on 22 February, operating on Mondays and Fridays using a 787-9.

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Finnair Cargo boosts digitalisation with cargo.one partnership

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innair Cargo is boosting digitalisation by partnering with cargo.one, allowing freight forwarders to digitally book spot market capacities at live prices with direct booking confirmation. The distribution channel enables Finnair Cargo to provide digital booking capabilities to the ever-growing demand of their customers for easier real-time bookings, while at the same time improving operational efficiency and maximising utilisation of capacity. Fredrik Wildtgrube, head of global sales at Finnair Cargo says: “We are happy to now offer our customers a fully digital firstclass booking experience with cargo.one. Making our offers available digitally through cargo.one is a forward-thinking move and will benefit both our customers and Finnair Cargo now and in the long-term.” Customers such as Hellmann Worldwide Logistics have welcomed the partnership with global head of airfreight Jan Kleine-Lasthues commenting: “We are very pleased to see Finnair Cargo joining the cargo.one platform, underscoring its image as a customer oriented and forward-thinking cargo carrier. We compliment the decision to join the multi-carrier platform in an effort to decrease complexity for customers, rather than to focus on a proprietary channel.” Moritz Claussen, managing director of cargo.one says Finnair Cargo has joined leading cargo carriers in the pursuit of digital

development. He says: “With the partnership, cargo.one becomes even more attractive for forwarders, adding more destinations in North America and Asia – and a platform no airline should want

DB Schenker opens Chicago-Sydney route

DB Schenker has launched Direct Express – Australia, offering scheduled air cargo services from Chicago, USA to Sydney, Australia using a Boeing 777 Freighter. The weekly Boeing 777-300 Freighter service from Chicago’s O’Hare airport will offer shippers in the Midwest with faster, more reliable air cargo services to Australia. The 777F, which has a payload of 102 tonnes, departs Chicago on Monday at 22.45 allowing for a late cut-off for shipment drop-offs, and arrive in Sydney at 12.05 on Wednesday.

Shipments are customs cleared with sameday connections for next-day delivery to most major cities in Australia. Temperature controlled storage operations are available in Chicago and Sydney, and a wide range of solutions are available for heavy and outsized shipments, as well as hazardous goods. Shippers can guarantee capacity during peak periods through block space agreements, and shipments remain under DB Schenker’s single-source control. DB Schenker’s eSchenker web portal offers shippers 100% shipment visibility from pickup to delivery. Chad Heller, chief commercial officer for DB Schenker says: “The US is Australia’s third largest trading partner and represents a significant portion of imports to the country. A large portion of these imports include the automotive, pharmaceutical and industrial manufacturing industries, many of which are located in the Midwest. With speed-to-market becoming more and more critical, our new Direct Express – Australia service is well positioned to meet this need.”

to be missed on.” Finnair Cargo plans to make the cargo.one platform available from May 2019.

Bauckham returns to ACS as Brexit advisor

FORMER Air Charter Service CEO and industry veteran, Tony Bauckham has returned to the charter company as a Brexit consultant. Bauckham, who has been managing director of Volga-Dnepr UK and CEO of Evergreen Airlines as well as CEO of Air Charter Service between 2007 and 2013, started his role last month. He will report directly to the ACS group board and work with the business to ensure internal systems are ready in the event of a nodeal Brexit.

Justin Bowman, CEO of ACS says Bauckham will work with division heads to ensure they understand implications the various scenarios could have on different airlines and suppliers, working towards potential solutions. He says: “Tony will also be analysing the most recent official advice and all the latest developments in order to assess the potential impact on ACS and aviation in general. We believe the knowledge that he will bring to the table will be of huge benefit to our customers.”

FAA orders temporary grounding of 737 MAXs following Ethiopian crash THE US Federal Aviation Administration has ordered the temporary grounding of Boeing 737 MAXs operated by US airlines or in US territories due to data and evidence gathered following the Ethiopian Airlines crash on Sunday 9 March. Flight ET302 crashed attempting to return to Addis Ababa shortly after take-off. The Digital Flight Data Recorder and Cockpit Voice Recorder have been discovered. Aviation authorities and airlines around the world have grounded 737 MAXs operations as a safety precaution, though the FAA did not follow suit until Wednesday 13 March. Boeing says it has full confidence in the safety of the 737 MAX but after consultation with the FAA and National Transportation Safety Board, has recommended the temporary suspension of operations. Dennis Muilenburg, president, CEO and chairman of the Boeing Company says: “We are supporting this proactive step out of an abundance of caution. Safety is a core value at Boeing for as long as we have been building airplanes; and it always will be. There is no greater priority for our company and our industry. “We are doing everything we can to understand the cause of the accidents in partnership with the investigators, deploy safety en-

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hancements and help ensure this does not happen again.” This is the second crash involving a 737 MAX, following Lion Air Flight 610 coming down on 29 October in Indonesia. Boeing had been investigating the crash and announced on 11 March that it had developed a flight control software update. It includes updates to the Manoeuvering Characteristics Aug-

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mentation System flight control law, pilot displays, operation manuals and crew training. The enhanced flight control law incorporates angle of attack inputs, limits stabiliser trim commands in response to an erroneous angle of attack reading, and provides a limit to the stabiliser command in order to retain elevator authority.


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Deutsche Post secures long term EBIT growth REVENUE at Deutsche Post DHL Group grew by 1.8% to €61.6 billion in 2018 though EBIT was affected by restructuring the Post – eCommerce – Parcel (PeP) division. The growth in revenue was driven by the ongoing boom in e-commerce as well as growth in international trade flows. By division, PeP revenue increased by 1.7% to €18.4 billion, Express by 7.3% to €16.1 billion, Global Forwarding by 3.4% to €14.9 billion and Supply Chain was down 5.7% to €13.3 billion. Operating profit measured in earnings before interest and tax (EBIT) decreased by 15.5% to €3.7 billion with PeP down 56.4% to €656 million and Supply Chain by 6.3% to €520 million. Express EBIT was up 12.7% to €1.7 billion and Freight Forwarding increased by 48.8% to €442 million. Frank Appel, CEO of Deutsche Post DHL Group says: “2018 was a challenging year for Deutsche Post DHL Group, which we closed with a successful Christmas business. Despite rising geopolitical uncertainties, global trade continued to register growth. This benefitted our DHL divisions in particular. In our German post and parcel business, we initiated measures to secure

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Immmediate priorities for air cargo, according to Alexandre de Juniac, IATA CEO speaking at WCS

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global percentage airfreight growth in 2018, as revealed at WCS the division’s long-term EBIT growth – and we consciously accept that this comes with a shortterm burden on EBIT.” €2.6 billion was spent on investments across all divisions, including the Express sector upgrading its hubs in Brussels, Madrid and Hong Kong, as

WFS handles Qantas flights at DFW

QANTAS has awarded Worldwide Flight Services (WFS) with a three-year contract at Dallas Fort/Worth International Airport covering passenger operations, cargo and ramp handling. The Australian flag carrier operates seven Airbus A380 passenger flights a week from Dallas to Sydney as well as a weekly Boeing 747-400 Freighter service. WFS’s client base at Dallas/Fort Worth includes AirBridgeCargo Airlines, Air China, Air France KLM, Avianca, British Airways, Cargolux,

China Airlines, Emirates Airlines, Frontier Airlines, Lufthansa Cargo, Korean Air, Nippon Cargo Airlines and UPS. Ray Jetha, senior vice president sales and business development for WFS says: “Qantas’ decision to award us this important new contract reflects the reputation we have established as the premier service provider for leading airlines at Dallas/Fort Worth due to our operational processes, priority focus on safety and security, business transparency and technological advances.”

Unilode and Hawaiian renew ULD deal UNILODE Aviation Solutions has renewed its long-term agreement to manage the ULD fleet of Hawaiian Airlines. Brad Matheny, managing director of cargo at Hawaiian Airlines says: “Thanks to Unilode’s expertise and flexibility, we always have the right assets to meet our ULD needs.” He also says that Hawaiian Airlines is look-

ing forward to fully digitising the ULD fleet for greater control and visibility. Benoit Dumont, CEO of Unilode says: “Unilode’s digitalisation programme will provide Hawaiian Airlines with data and reports to help them offer value-added services to their own customers and give them a competitive edge in the market.”

well as modernising the aircraft fleet. Deutsche Post DHL Group is projecting an increase in operating profit to €3.9-4.3 billion in 2019 with structural and operating improvements in all division expected to contribute to the increase.

B&H launches FirstTrac

AEROSPACE logistics provider B&H Worldwide has launched FirstTrac, the fully web-based successor to its customer service system, OnTrack. FirstTrac, which was designed by B&H’s inhouse IT development division, InTech comes with new AOG and critical monitors for customers and will also be used by its global control tower teams to provide enhanced visibility of shipments. Customers around the world use the same interface as B&H employees in any location, allowing the company to provide consistent support. They can proactively monitor orders, which separate AOG and Critical Monitors as FirstTrace uses a traffic light system to highlight up and coming milestones, past milestones and timeframes. Seth Profit, managing director of B&H InTech says: “Keeping ourselves and our customers at the cutting edge of IT development in this industry is a vital part of our success story.”

Brussels Airport signs up to TIACA CSQ tool BRUSSELS Airport has become the first airport in Europe to sign up to The International Air Cargo Association (TIACA)’s Cargo Service Quality (CSQ) tool. The online rating tool covers every aspect of air cargo processing, including physical and document handling, technology, facilities, regulators and general airport infrastructure, amongst other variables. Performance assessment is undertaken by forwarders who rate handlers at the participating airport through a comprehensive questionnaire developed by a TIACA taskforce. David Bellon, airfreight product station director for DHL Global Forwarding (Belgium), and vice chairman of Air Cargo Belgium says: “It is the voice of the customer and potentially a platform for discussion, which enhances the engagement of all stakeholders in the air cargo supply chain in Brussels to further improve, set standards, and be an example of the cargo community of the

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future.” TIACA’s CSQ launched last month after a successful pilot scheme involving 179 freight forwarders and 18 cargo terminal operators around the world. Following completion of the pilot, Kenya Airport Authority pledged to fully adopt CSQ by mid-2019 at all airports across Kenya, the first nationwide implementation of the tool. Steven Polmans, head of cargo and logistics

at Brussels Airport, and vice chairman of TIACA says: “It strengthens relations between an airport and the forwarder community and is a tool enabling all partners to improve the processes at an airport. At the same time, the tool can also be used to have detailed discussions with handling companies and look for improvement in a constructive way.” Sichuan Airlines Cargo will start flying to Brussels Airport at the end of April, with three flights a week and increasing to six by 2020. The Chinese carrier, which is based at Chengdu Airport and operates several Airbus A330Fs, has chosen Brussels Airport as its first cargo destination in Europe. Arnaud Feist, CEO of Brussels Airport Company says: “In addition to being our first Chinese full freighter airline, it will provide us with a direct link to Chengdu Airport, which has been chosen as the new hub for SF Express, one of the main e-commerce operators in China.”

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extraordinary percentage global growth of airfreight in 2017, as revealed at WCS

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tonnes of goods donated by Aviation San Frontieres, L’Institut Universitaire du Cancer-Toulouse Oncopole and La Chaîne de l’Espoir flown to Air Senegal’s base at Blaise-Diagne Airport in Dakar

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years in which air cargo demand is forecast to double, according to Frederic Leger, IATA’s director airport, passenger, cargo, security products, speaking at WCS

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tonne motor moved by AirBridgeCargo Airlines from Vasteras in Sweden to Shanghai, China

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drone incidents reported by pilots in Germany in 2018, more than double the total reported in 2017

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distance in kilometres between Chengdu in China and Brussels, the newest freighter route to serve the Belgian capital

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Growth slows against backdrop of trade tensions

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he air cargo market saw growth slowing from 7.7% in 2017 to 3.2% against a backdrop of global trade tensions, says Airports Council International (ACI). The preliminary figures were revealed at the 11th Annual Airport Economics and Finance Conference and Exhibition in London. Total cargo volumes at the top 20 busiest airports grew a modest 1.3% and handled 51 million tonnes. Hong Kong remained on top with more than five million tonnes, growing 1.4%; Memphis remained second with 3.1% growth to 4.4 million tonnes, and Shanghai Pudong was third with volumes declining 1.5% to 3.7 million tonnes. Angela Gittens, director general of ACI World says: “For cargo, the picture was not as good against a backdrop of global trade tension. The ongoing trade war between the United States and several of its closest trade partners was a shock for the industry

and global supply chains.” Among the top 20 cargo airports, the top seven all remained in the same order with Hong Kong on top, followed by Memphis, Shanghai Pudong, Seoul Incheon, Anchorage, Dubai and Louisville. Taipei leapfrogged Tokyo Narita and Los Angeles entered the top 10, jumping up from 13th in 2017. Doha was the fastest growing airport, with 8.8% growth helping it move from 16th last year to 11th. Singapore Changi remained 12th while Frankfurt fell from 11th to 13th and Paris Charles de Gaulle was down from 10th to 14th. Miami was down to 15th from 14th, and Beijing moved from 15th to 16th. Guangzhou moved up from 18th to 17th and Chicago O’Hare rose from 20th to 18th. London Heathrow fell from 17th to 19th and Amsterdam Schiphol from 19th to 20th.

Lufthansa orders 20 787-9s and 20 A350s

LUFTHANSA Group is modernising its longhaul fleet by ordering 20 Boeing 787-9s and 20 Airbus A350-900s to replace four-engine aircraft. The new aircraft will be delivered between 2022 and 2027, and Lufthansa says that by modernising the entire long-haul fleet, the possible fuel savings could add up to 500,000 tonnes per year and reduce CO2 by 1.5 million tonnes. Operating costs will be around 20% lower than earlier models. The Lufthansa Group Executive Board also informed the Supervisory Board of the sale of six Airbus A380s to Airbus. The A380s will leave the fleet in 2022 and 2023. The airline says it is reducing the A380 fleet from 14 to eight for economic reasons.

Heppner partners with Gebrüder Weiss FRENCH freight forwarder Heppner has formed a strategic partnership with the Air & Sea division of Gebrüder Weiss. After a 20-year partnership with Hellmann Worldwide Logistics, Heppner says it is moving up the next level in order to accelerate expansion in France and elsewhere in Europe in air and sea freight forwarding and related customs services. Valentin Jung, head of Heppner’s Air & Sea division says: “Operating exclusively with a global network like Hellmann inevitably runs into limits in terms of expansion for Heppner. We now believe we have reached that limit.” Each year, Heppner’s Air & Sea division or-

ganises the shipping of more than 25,000 sea containers and 15,000 tonnes of airfreight. Gebrüder Weiss’ Air & Sea division ships more than 115,000 sea containers and 58,000 tonnes of airfreight a year. The new partnership opens the door to Heppner expanding operations outside France, particularly in Western Europe and Africa. Jung says: “I am delighted with our partnership with Gebrüder Weiss, which demonstrates our ambition to speed up our expansion in France and internationally in air and sea transport. We share with Gebrüder Weiss a common vision of our business in terms of operational excellence and customer service.”

Dachser receives AEO certificate in India

DACHSER India has received certification to be an Authorised Economic Operator (AEO) from the Central Board of Indirect Taxes and Customs. The programme is a recognised quality mark to show commitment towards security and efficiency in international supply chains. Companies that achieve AEO status are considered a more secure and reliable business partner, and can operate with certain privileges. For logistics providers, privileges include reduced examination and inspection, which

translates into faster transit of goods without case by case permission. The certificate means swift customs clearance and simplified international trade. Huned Gandhi, managing director of Air & Sea Logistics for the Indian Subcontinent at Dachser says: “Our efforts to enhance international supply chain security during potentially disruptive times are paying off. Gaining this certification assures customers of our continued focus on compliance, supply chain security and reliability.”

First Airbus/Air Senegal goodwill flight

THE Airbus Foundation and Air Senegal have organised their first goodwill flight to transport medical equipment, toys, clothes and books on the airline’s Airbus A330neo. The aircraft took off from Toulouse airport carrying 13 tonnes of goods donated by Aviation San Frontieres, L’Institut Universitaire du Cancer-Toulouse Oncopole and La Chaîne de l’Espoir to Air Senegal’s base at Blaise-Diagne International Airport in Dakar. The items will be distributed to the Centre Hospitalier de Saint-Louis du Sénégal and to the Foundation Servir Senegal, which is led by Marème Faye Sall, the first lady of Senegal. Servir Senegal will use the donation for medical, housing and dietary assistance for the elderly, and the books for children’s education. Philippe Bohn, CEO of Air Senegal says: “The acceptance of our latest A330neo is made more meaningful as we transport humani-

tarian goods to those in need. This mission is an excellent opportunity to demonstrate the power of cooperation in aviation to bring relief to people in the region.” Guillaume Faury, president of Airbus Commercial Aircraft and member of the Airbus Foundation’s board of directors says: “I welcome Air Senegal to our network of Foundation partners and thank all involved for their logistics support and tireless efforts to make this mission a reality.”

Goovaerts named dnata APAC CEO

ABC motors from Sweden to China AIRBRIDGECARGO Airlines has delivered an ABB motor from Vasteras in Sweden to Shanghai, China on behalf of Greencarrier Freight Services. The oversized shipment was trucked from Vasteras to ABC’s online station in Amsterdam. Specialists from the abc XL team organised the shipment, which weighed close to the maximum payload allowed per position in the cargo hold. After examining the technical details, the team suggested leaving the 28-tonne motor on its metal beams without dismantling after they

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planned a precise loading scheme, allowing the gross weight to be slightly lowered and leaving the shoring and motor intact. Sergey Lazarev, general director of AirBridgeCargo says: “Our abc XL team consists of expert loadmasters, engineers, sales, and operations personnel who understands the significance of every decision they make. We are delighted to see yet another out-of-gauge shipment being delivered by air without any hurdles, despite the circumstances.”

DIRK Goovaerts has been appointed regional CEO for the Asia Pacific region by dnata. In his role, Goovaerts will oversee operations at 10 airports in Australia, the Philippines and Singapore, managing a workforce of 6,000 employees. He will be based in Singapore and report to Ross Marino, senior vice president for dnata’s International Airport Operations division. Goovaerts joins from Saudi Ground Services Company, where he was chief operations officer. Marino says: “Dirk brings with him a strong mix of operational experience, technical breadth, leadership and passion for customer care. I’m sure dnata and our customers will benefit from Dirk’s broad experience which is well suited to our business in the region.” Goovaerts comments: “With the dedicated Asia Pacific team we will make sure dnata continues to deliver the best possible services and achieve the highest safety and security standards in the region.”

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Happy birthday, Unit Load Device!

VRR launches inflatable AKE container concept at WCS

The humble Unit Load Device (ULD) was born in the time of the B707 and is still as vital in the era of the B777. This means the ULD has served airlines from the time of Eisenhower to Trump.

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o mark the first use of the aircraft unit load device (ULD) in 1959, international service partner for outsourced ULD management Jettainer, is sending a visual container around the world for the 60th anniversary of the air freight container. The journey started in early March in Frankfurt and took in Singapore, where the IATA World Cargo Symposium was taking place. There, the Jettainer celebrations continued with a second anniversary: its own 15th anniversary. In the 15 years that Jettainer has pushed forward the development and steering logic of ULDs, the company claims to have become the market leader in outsourced ULD management. More than 20 customers currently rely on Jettainer. “We have won many customers in the last 15 years and have not yet lost a single one. For us, this lasting loyalty is the perfect proof of our service,” says Martin Kraemer, head of marketing and PR at Jettainer. Innovations in the ULD steering software as well as in the container hardware have led to significant increases in efficiency and contribute to more fuel-efficiency and eco-friendliness.

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Jettainer’s IT infrastructure, JettWare, already incorporates an artificial intelligence to support ULD controllers in their work. Technologies for geo-localization of ULDs are successfully in use. Further developments continue to provide improvements. The ULD Black Box, for example, is currently being tested as a device that can measure and register damages. This will lead to a further increase in the efficiency of ULD fleets. “The development, especially in the area of damage prevention, offers a great opportunity for further improvements. The 15th anniversary of Jettainer and the 60th anniversary of the ULD clearly show that ULD management is an innovative industry and that the potential is far from exhausted,” adds Kraemer. Standardised pallets and containers were introduced in 1959 to optimise the loading and unloading of freight.

Fast forward

A 255-page research report on the Unit Load Device (ULD) market, looking at market opportunities, trends, forecasts and competitive analysis by Stratview Research has valued the industry as being worth $279.4 million in 2016, likely to grow at a healthy CAGR of 5.4% over the next five years to reach $382.3 million in 2022. The objective of the report by global market intelligence firm Stratview Research is to identify the trend, forecast, competitive analysis, and growth opportunity of air cargo ULD market from 2017 to 2022. The key air cargo ULD manufacturers are Zodiac Aerospace, Cargo Composites, Nordisk Aviation Products, VRR Aviation, and Satco Inc.

SAS Cargo and Unilode in digitising project

VRR, located in the Netherlands and a leader in innovative ULD solutions, launched its first concept model of the inflatable AKE container during the annual World Cargo Symposium, held at the Marina Bay Sands in Singapore last week. The product, named Air5, is the answer to the current existing overstock and understock of ULDs caused by the international air cargo trade imbalance. VRR claims it will improve the competitiveness of its customers by reducing costs and increasing capacity. The inflatable AKE container, which weighs approximately 68kg folds out automatically and takes shape in just 30 seconds using air pressure. To collapse the container, air is released, which takes just two people and two minutes. The folded container can be stacked five high on the lower deck of regular wide-body aircraft, which makes it an easy and cost-effective ULD to return, store or relocate. “Current alternatives like disassembling or

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return by sea freight are expensive and/or time consuming,” says Geert van Riemsdijk, managing director of VRR. “We believe this way of working will become a thing of the past when our customers start using our inflatable AKE containers in their container fleet” The innovative ULD is also extremely resilient. By using materials and techniques that originate from similar applications where operated in extreme environments, no concessions have been made with regard to the structure’s weight, robustness, strength or safety. This makes it easy to insert into any current operation. “The new inflatable AKE container is going to be a target product for our new collapsible and inflatable product line, which will be released next year,” explains van Riemsdijk. VRR expects to have the final certified version of its inflatable AKE container available by Q1 2020, and to start series production later the same year.

SAS Cargo and Unilode Aviation Solutions, a global provider of outsourced ULD management and repair solutions, will further deepen their collaboration with Unilode digitising SAS Cargo’s container fleet starting Q2 2019. This agreement forms part of Unilode’s digital transformation programme, which is based on BLE5 technology and a global reader infrastructure, and enables ULD tracking and the measurement of temperature, humidity, light and shock in air freight shipments, among other benefits. This collaboration started in 2011 with the

conversion of SAS Cargo’s ULD fleet to lightweight containers. Leif Rasmussen, SAS Cargo Group president and CEO, said: “The implementation of innovative and competitive digital solutions requires that all stakeholders put the customer at the centre, ensure transparency and integrate a digital transformation strategy that offers a coherent customer experience through all channels. The digitisation of our ULD fleet will bring SAS Cargo to the next level of supply chain excellence.”

Innovation to the CORE

ware associated with the technology. Ibrahim Mohamed Salleh, CEO of MASkargo expressed his support for ULD tracking, saying: “Real-time ULD tracking information will enable MASkargo to more accurately monitor and replan shipments that are delayed due to irregular operations, such as extreme weather events. “This will enable customers to have end-toend tracking of the ULDs starting in their own warehouses throughout the journey to the final destination.”

MASkargo has signed a deal with TW Control, CORE Transport Technologies and Nordisk Aviation Products for a tracking solution of its containers and pallets. The COREInsight tracking solution will be incorporated in MASkargo’s containers and pallets supplied by Nordisk. TWC is appointed by CORE to implement the tag and reader tracker for MASkargo and also the developer of the ULD Management Soft-

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When is a CEO not a CEO? When he’s a Chief Encouragement Officer

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he United States’ national unemployment rate is currently just 4%. That means it is “definitely a job seeker’s market in the still-frothy US economy. Here in South Carolina, it’s even tighter, with a jobless rate of only 3.3%,” notes Steve Townes, CEO and founder of Ranger Aerospace and chairman of ULD manufacturer ACL Airshop. This tightening of the market comes when companies such as ACL Airshop need “to focus on employee engagement and retention, in order to hold onto talent once they are able to secure good people,” he says. His company is fortuitously situated in the southeast USA which has become the fastest-growing regional concentration of aerospace and aviation related companies in the world: “We are all working to keep pace,” he observes.

Right stuff

The company hires “up and down the experience and age spectrums. Rather than focusing on ‘millennials versus older’, our approach is to hire good people who share our passion for this industry, want to be strong team contributors, and who have that extra something: the ‘right stuff’. We want to be an employer of choice for great people at all levels. A new person with a good attitude and a solid work ethic can be trained to perform the tasks, and can then go far with us in a good job and a positive employment

atmosphere,” he says. This translates in low employee turnover. Departures from ACL Airshop are typically voluntary and few in number. He adds: “Our average tenure in the US operations is 7.5 years. Sometimes an employee seeks a new position elsewhere that might be a better fit for their life and family requirements. We are viewed as a considerate and respectful employer by our people. I sometimes say that “CEO” truly stands for ‘Chief Encouragement Officer.’” The company’s longest-tenured employee is reaching 25 years in 2019 and nine employees are reaching 20 years in 2019. The original founder of ACL Airshop from 35 years ago remains a shareholder in the enterprise to this day.

Pundits raise caution

All the pundits are raising caution flags for 2019, including for the air cargo sector. However, given the diverse revenue streams the company enjoys, they are expanding each of our business lines again in 2019 by adding new air-

port service locations and more certified repair stations. There is fully integrated manufacturing, selling, leasing, repairing, and logistics control programmes of cargo control products and ULD fleets. The company’s Bluetooth initiatives and ULD Control logistics programs are good examples of its deliberate technology push. “As an organisation, we aim high. Our Ranger Airshop Holdings boardroom group has four substantial institutional co-investors who collectively have “very ample” capital to keep fuelling the growth of ACL Airshop,” he says. Townes continuously tracks various types of market research and analysis from numerous expert sources. The company’s fastest-growing region remains Asia Pacific, following the aviation and cargo trends in that global theatre. North America and Western Europe are outstanding, though mature and not growing as quickly as APAC. The company has growth emerging in Latin America, Eurasia and Africa. “Our efficiencies for our airlines customers have measurably increased as we’ve doubled our network in the past three years. We now

have over 50,000 ULDs serving over 50 of the Top 100 airports, with strategically located repair stations, and lacing it all with improved technologies, systems, and Bluetooth,” he says. “Whilst we carefully watch and track all of the geopolitical turmoil that is rippling markets everywhere, we will not cower down in our foxhole and quiver. Rather, we have steadily and aggressively invested for growth and numerous improvements, unflinchingly. “Our KPI’s aimed at customer efficiencies prove that Network Power yields better client service. Our own fleet efficiency three years ago was in the 55% range when we were smaller and had fewer nodes. Now our own fleet size and stations count have each more than doubled, and quite naturally we now enjoy around 70%+ efficiency on our deployed cargo assets. “And we are [faster] with shifting our on-demand ULD inventories to wherever the airlines need them most. We are especially skilled at short-term leasing solutions when the customer needs us in a pinch. Trade wars? Our corporate response is “Full speed ahead, but steer carefully!”

Out with the old, in with the new at AEROTUF SINCE the end of the last century, Charleston, South Carolina-based Cargo Composite has supplied ULDs and appropriate services to airlines. In 2011, the company registered AEROTUF as a brand name. Eight years later, under the watch of Adam Barrington-Spencer, vice-president of sales and marketing, Cargo Composites will be no more. What was once a registered brand name is now the new name of the company, he notes, as Cargo Composites has been rebranded AEROTUF. He says: “In late 2018 we undertook a brand evaluation and partnered with a UK marketing firm to help refresh us. As we explored our brand values, we recognised the advantage of changing our name. We had considered several options, but AEROTUF represented us best, being aerospace and the industry we are in combined with our key USP for all our products is “tough” played out as AEROTUF.”

According to Barrington-Spencer, the market has reacted “positively” to the rebranding. He says: “We feel we are more aligned with the aviation industry’s needs. We do not sell ULDs, we aim to solve problems and add value to our business partners. “By clearly articulating our brand values and proposition we will be able to serve our partners and the industry better, adding value to the supply chain with our unique and resilient value-add solutions, designed to empower the aviation industry.” The name Cargo Composites will disappear.

IATA innovation finalist The company was recently selected as a finalist on the shortlist of an IATA innovation award. He says: “We are honoured to have been selected as finalist, together with Air New Zealand. It is fantastic that we are both being recognised for this simple, yet

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stronger, safer and greener solution that helps to minimise the use of thermal blankets and provides extra protection for temperature-sensitive shipments during transportation. “We have seen massive interest in our unique ULD solutions, especially the AeroTHERM with the success of our partnership with Air New Zealand, and is positively engaging other airline stakeholders that often do not get involved in ULDs. This is creating greater awareness of ULDs and our solution benefits across the supply chain.” The company has recently created a spare parts team and appointed Barrington-Spencer. It is hiring more engineers and will be growing the team further in 2019. “Since Boeing moved in to Charleston, South Carolina, it can be challenging to compete for similar resource pools. However, this has enabled Charleston to become a bit of a hub for drawing innovative talent, and this does allow us to ride Boeing’s tailfins and attract talent from afar.”

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Hong Kong remains the world’s leading cargo hub Hong Kong International Airport has held the title of the world’s busiest cargo airport since 2010, and broke through the five million tonne barrier in 2017. The opening of the delayed bridge opens cross-border opportunities and a third runway will unlock further capacity.

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rowth may be subdued at Hong Kong International Airport due to restricted freighter, but Wilson Kwong remains confident about the future, due to the breadth and depth of its network. The chief executive of Hong Kong Air Cargo Terminals (Hactl), the only neutral air cargo terminal operator at the airport says despite restricted freighter capacity, Hong Kong offers what Kwong calls “a unique proposition”. It offers an unparalleled spread of destinations, choice of carriers and frequencies, scheduled maindeck capacity, modern infrastructure, modern trade-friendly Customs processes and a bi-lingual workforce. The ‘Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area’ issued in February affirms Hong Kong’s status, and Kwong says Hactl welcomes the plan. He comments: “This, along with the opening of the third runway now being built, will create the necessary capacity for stronger growth, both in general cargo as well as other higher value-add cargo and e-commerce traffic.” E-commerce will be supported by the opening of a Premium Logistics Centre by the Cainiao-CNAC-YTO Express joint venture in 2023. That’s all in the future, of more immediate interest is the opening of the delayed Hong Kong-Zhuhai-Macau Bridge. The bridge opened for traffic in October last year, significantly reducing trans-Pearl River Delta transit times. Hactl is benefitting from reduced trucking times, with Kwong saying: “That’s a big benefit to our Hacis subsidiary, which operates an RFS network that now links nine Inland Cargo Depots to Hong Kong. By facilitating the fast and inexpensive movement of cargo across the region, it should enable our carriers to extend their market catchment areas.” Kwong says the impact of the bridge will be “long-term and gradual”, saying: “while the bridge did open later than originally planned, we remain very positive on the long-term benefits this will bring both for Hong Kong and Hactl as the bridge facilitates growth in the Greater Bay Area.”

Business remains strong at Hactl though tonnage fell in 2018 with the departure of Hong Kong Airlines to another handler. Despite Kwong describing this as a “disappointment”, Hactl still handled 1.7 million tonnes. Kwong says: “We have successfully made up some of the lost tonnage through new customers and organic growth, and an area of particular success is mail. This grew to over 10% of our total business in 2018, and involves both our subsidiary Hacis and Hactl, so is a win:win for us.” It is still too early in the year to draw meaningful conclusions from results so far, and there are unresolved issues including USA-China trade tensions and slowing world trade, so Kwong says the inclination is “to err on the side of cautious optimism”. He says changing localised factors are a constant in world trade and tend to balance each other out, saying: “Markets and trade lanes rise and fall; as one disappears or shrinks, another invariably takes its place.” China is Hactl’s main source of cargo, saying the possible partial loss of the US market would be a “transient problem” that will be overcome as the two countries engage in trade talks. Intra-Asian business is growing, with e-commerce driving

behind the strong results, making the future of air cargo in Hong Kong look positive. Kwong says: “For Hactl, with over 100 handled airlines, we continue to enjoy a strong geographic diversification that provides a good degree of insulation from any problems on specific trade lanes.” Like all operators in Hong Kong, Hactl faces challenges due to long commutes from populated areas and almost no unemployment. To counter this, Hactl focuses on staff retention through training, career development, good rewards and a pleasant working environment. Kwong says: “Our churn is well below average, and means we are the only cargo handler here that does not need to use temporary agency labour; that equates to better continuity and experience, and supports higher service standards.” Kwong is confident about the future, as it continues to invest in infrastructure and systems, as well as resources and capabilities for premium cargo. He says: “We are proactive in helping our airline customers to exploit new revenue sources, and see ourselves very much as partners in their success.”

The gateway to China remains open for business

HONG Kong continues to act as a gateway to China, and will remain so in the coming years says Laura Crow, managing director – China at Tigers. She says that Hong Kong offers flexible cross border solutions for China and the APAC region, with key commodities for Tiger including garments, shoes, electronics and accessories, and cosmetics. Crow adds that globalisation is shaping demand with UK branded perishables being routinely sold in Hong Kong supermarkets, with daily arrivals from London’s Heathrow Airport. This year has started off slowly, with rates softening post-Christmas and staying low during the first quarter. Crow says: “A strong peak particularly into the US has reduced demand for the early part of 2019, and we are anticipating an uplift in volume into Europe towards the end of March, pre-Brexit. That said, the market is still cold and rates are low.” She adds: “Our customers continue to face rising costs and export orders are on par with 2018. A turndown in the market, plus changes in policy in China, are pushing Chinese man-

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ufactures to move to the Midwest China and Southeast Asia.” US-China trade tensions have had an impact on Hong Kong-based Tigers, though Crow says it was not significant. Cargo is still moving, she says, though order flows were affected by customers bringing orders forward before December, impacting first quarter demand. Crow says: “There is uncertainty in the international market causing our customers to delay investment decisions, particularly in China. Apparel and footwear buyers are increasingly looking at ASEAN and Indian Sub for product selection, but for automotive and high tech industries it will take some time to establish manufacturing and upskill the labour force, and our customers recognise this.” However global issues such as the US-China trade tensions develop, Crow says Hong Kong will continue to play an important role in China, and Tigers will continue to invest in facilities, technology and people. Crow comments: “Hong Kong will continue to offer a low risk solution to customers looking

to trade in China and those looking for a hub for global fulfilment for B2C solutions, particularly where air freight and parcel solutions are required.” Projects such as the Hong Kong-Zhuhai-Macau bridge and High Speed Rail connection with the mainland is bringing Hong Kong closer to China and help logistics evolve across the Pearl

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River Delta. Crow says: “Within China there is the desire to make international trade less complex and there is significant investment in facilities and infrastructure. Whilst the cost of rent and labour continues to rise in Hong Kong, Hong Kong will continue to play an important role for high value, high touch customers.”


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ACW 18 march 2019

11 13/03/2019 10:51


60

HE PRETENDS TO KNOW WHAT HE’S TALKING ABOUT

Seconds with

Maarten Klinjistra is general manager of Siginon Aviation in Kenya. He is well versed in all matters aviation having worked in East, West and South Africa and provided regional oversight in strategic African markets such as DR Congo, Zambia, Ethiopia and Nigeria. He also likes a good steak.

Maarten Klinjistra

ACW: If you were sent to an island – food and shelter is available – what three luxury items would you take? Maarten Klinjistra: A solar power/ inverter set, laptop and a satellite or 4G data router.

ACW: If there was a movie produced about your life, who would play you and why? Maarten Klinjistra: Albert Finney. A great actor who would portray my character well… I think. ACW: What’s the most interesting thing about you that we wouldn’t learn from your CV alone? Maarten Klinjistra: I co-hosted a jazz show on radio.

ACW: We finish the interview and you step outside the office and find a lottery ticket that ends up winning 10 million shillings ($10,000). What would you do? Maarten Klinjistra: Cash it in and buy agricultural land and do some farming. ACW: Are you afraid of clowns? Maarten Klinjistra: No.

ACW: You are on Death Row. What is your final meal? Maarten Klinjistra: A medium-rare pepper-coated, well-aged rump steak, broccoli, roast potatoes with mayonnaise, carrots, cappuccino and ice cold sparkling water. ACW: What did you want to be when you grew up? Maarten Klinjistra: Airline pilot. ACW: What are the best and worst purchases you’ve ever made? Maarten Klinjistra: My home was the best and the worst was a yacht.

ACW: What was the last film you saw? Maarten Klinjistra: The Big Short

ACW: What did you have for breakfast? Maarten Klinjistra: Oats and tea. ACW: If ACW came to your house for dinner, what would you prepare for us? Maarten Klinjistra: Aperitifs, Pasta Alfredo and assorted fresh fruits, Port, cheese and crackers.

ACW: If you could have dinner with anyone from history, who would it be and why? Maarten Klinjistra: Charlie ‘Bird’ Parker. Truly, a musical genius who contributed immensely to Jazz music; great conversations at the table. ACW: Name a product or service you love so much that you’d happily be that company’s spokesperson. (Not Siginon!). Maarten Klinjistra: Spotify.

ACW: What would your autobiography be called? Maarten Klinjistra: ‘He Flew’.

Last meal

“This is your (female) captain speaking” ON 8 March 1910, Raymonde de Laroche born Elise Raymonde Deroche, became the first woman in the world to receive a pilot’s licence when the Aero-Club of France issued her licence #36 of the Fédération Aéronautique Internationale (International Aeronautics Federation). The fact that this happened just six years after the Wright brothers made the first controlled powered aircraft flight at Kill Devil Hills, 6 km south of the town of Kitty Hawk, South Carolina, on December 17, 1903 speaks volumes for the early involvement of women in aviation. By co-incidence, International Women’s Day (IWD) is celebrated on March 8 every year. It is a focal point in the movement for women’s rights. Capt Jacqueline Robinson and First Officer Carina Krause celebrated IWD by becoming the first all-female crew to fly a CargoLogicAir Boeing 747 Freighter this year. Captain Robinson and First Officer Krause marked their final preparations for the commemorative flight fromii Frankfurt Airport flying to Atlanta onboard a 747-400ERF, but not before they were presented with flowers to mark the milestone.

ACW: If you were a car, what model would you be? Maarten Klinjistra: Audi A8

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Profile for Azura International

ACW 18th March 19  

ACW 18th March 19