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

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The weekly newspaper for air cargo professionals No. 1,045

19 August 2019

Crash, bang, wallop

Airway Repair Bill talks from the hangar

Australia Post delivers $1b deal to Qantas

antas and Australia Post have expanded their domestic and international airfreight agreement to ship parcels to benefit online shoppers and businesses.

The seven-year agreement worth over A$1 billion will give Australia Post customers access to Qantas Freight’s freighter aircraft and priority access to cargo space on Qantas and Jetstar passenger flights in addi-

tional to partner airline capacity. Three Airbus A321 Passenger to Freighter conversions will be introduced for Australia Post, making Qantas the first airline to operate the A321 as a freighter. The A321P2F will have an additional nine tonnes of capacity compared to existing Boeing 737 freighters, with the first one entering the fleet in October 2020. Christine Holgate, CEO and managing director of Australia Post says the alliance will drive e-commerce growth, and connect businesses and communities around the world. She says the enhanced freighter network complements A$900 million

WCA members and staff raised more than £5,000 by completing the 100mile Prudential RideLondon cycle challenge for the charity, War Child. All 10 WCA riders completed the course, which included two significant climbs in Surrey Hills, Surrey, UK alongside 25,000 other cyclists. Dan March, chief executive officer of WCA says he was extremely proud and honoured to have ridden with members and staff in the event. He says: “The charity does great work in helping injured and orphaned

children around the world and helps rebuild communities, as well as provide essential infrastructure.” War Child works to support children in conflict zones after the TV cameras go home by giving them an education and equipping them with skills for the future. Sarah Robertson, spokeswoman for War Child says: “We aim to reach children as early as possible when conflict breaks out, and stay to support them through their recovery, which is made possible through support and fundrais-

ing from organisations like WCA.” The network members on the team were Frederic Mercier, Brett Frederiksen, Paulo Ferreira, Edwin van Saarloos, Sam Yauner and Rob Donald. The WCA staff were Dan March, Chris Dunn, Edwin van der Genugten and Adam McKenna.

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of investments through automation and infrastructure. Holgate says: “It means that we can build flexibility into the air freight network to manage increased volumes and demand in the lead-up to Christmas. Last year we flew more than 400 tonnes of mail on our busiest night, and more than 40 million parcels during December; this year, we expect to exceed both those targets.” Alan Joyce, CEO of Qantas Group says the agreement is a vote of confidence in the future growth of e-commerce and will support rising demand for next-day deliveries. He says: “Consumer preferences and expectations are rapidly changing and together with Australia Post we’re responding by growing our dedicated freighter fleet to provide a better experience for consumers and businesses.”

WCA gets on its bike to raise £5,000 for War Child

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INSIDE TIME:MATTERS EXPANDS IN ASIA

TIME:MATTERS has extended its Sameday Air network across Asia, bringing the service to Tokyo Narita, Singapore and Bangkok ... PAGE 3

PERETZ TO RETIRE FROM UPS

RICHARD Peretz will retire as chief financial officer of UPS, with Brian Newman joining from PepsiCo to fill the role. Newman will take up the ... PAGE 5 SAFETY FIRST FOR DANGER

THE International Air Transport Association kindly spells out for the uninitiated exactly what ‘dangerous goods’ are. “The thought rarely crosses our ... PAGE 8

FRESH PRODUCTS ARE HEALTHY

FOR IAG Cargo, Latin America is experiencing strong growth, particularly in the perishable, automotive and pharmaceutical sectors ... PAGE 10

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Poor visibility contributed to Ivory Coast crash

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n Antonov AN-26-100 being operated for the French military crashed into the sea 800 metres short of Abidjan airport in Ivory Coast due to poor visibility. The aircraft belonging to Valan International Cargo Charter was flying from Ouagadougou Airport in Burkina Faso and crashed on the approach to Abidjan-Felix Houphouet Boigny Airport at 08.23 on Saturday 14 October 2017. It was on a military and cargo flight carrying 10 people, of whom all three crew members died as did one passenger. A report has been released by the aviation safety board of Ivory Coast, Bureau Enquêtes Accidents d’Aviation de Côte d’Ivoire, which says the probable cause was the aircraft approaching below minimum guidelines without establishing formal visual contact with runway references and without adequate monitoring of the aircraft’s glide path. The report also says there were other contributing factors

including underestimating weather conditions, a lack of knowledge of the airport, inadequate monitoring of aircraft instruments and flight path, distractions from tasks not related to flight operations, disabling audible alerts due to unwanted alarms, unbalanced crew resource management and non-compliance with company standard operating procedures (SOP).

Air Partner flies 400 tonnes of aid to South Sudan

THE Freight division of Air Partner has transported more than 400 tonnes of aid to Juba, South Sudan for a humanitarian organisation. Over three weeks, Air Partner chartered a total of 18 flights from the US to Juba via Entebbe, Uganda to transport more than 400 large pallets of non-perishable food weighing over 400 tonnes. Eight of the flights were operated on Boeing 747s and 10 used Ilyushin IL-76s. The Freight team worked around the clock to mobilise and deliver cargo to South Sudan, which hosts one of the largest number of refugees in the world. Jack Burt, vice president of Air Partner’s US cargo division says: “Air Partner is committed to providing relief in times of crisis. In order to ensure that every aspect of this project was as seamless as possible, members of our freight team were stationed on the ground at Entebbe airport to provide expert supervision. “With the current prolonged conflict and economic instability in South Sudan, we are fortunate to be able to help deliver such an important commodity that can have a direct impact on the people of the region.”

Quote of the week “With more aircraft on the ground, servicing areas and aprons have become more congested and this has resulted in an increase in the number of collisions” Kevin Smith, global head of aviation claims, AGCS

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time:matters extends presence in Asia

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ime:matters has extended its Sameday Air network across Asia, bringing the service to Tokyo Narita, Singapore and Bangkok. The stations in Japan, Singapore and Thailand are connected to the European hubs of Frankfurt, Munich and Vienna with 84 flights a week. The new locations join services to the Chinese cities of Shanghai, Shenyang, Beijing, Nanjing, Qingdao, Chengdu and Guangzhou. time:matters expanded its Chinese presence in June by establishing time:matters International Freight Forwarding to provide customers with support in Mandarin through a local hotline, email address and additional website. Lars Krosch, COO of time:matters says: “We are now connecting further important Asian marketplaces with large European and American business centres via our unparalleled Sameday Air network. This represents an important step towards our longterm goal of providing our customers with a highly efficient global Sameday Air network.” Alexander Kohnen, CEO of time:matters says: “The expansion into the Asian market is a key element of our internationalisation strategy and will help us to considerably extend our global quality

CSafe expands in Amsterdam

ACWBITES LONDON-BASED start-up CharterSync has been short-listed for Air Business of the Year in the UK Freight Transport Association (FTA) Logistics awards. ZEROAVIA has made significant advances in developing a zero-emission, hydrogen-fuelled electric powertrain which aims to deliver the same performance as a conventional aircraft engine at much lower operating costs. ZeroAvia plans to start supplying its platform to operators and manufacturers in 2022. SAUDI Airlines Cargo launched its Express Heavy service, providing high-priority delivery for critical global heavy shipments and loads during August.

promise and product range. This is a logical step for us following our expansion into China and a response to the specific needs and requirements of our international customer base.”

FEDEX CARES has donated 100 car seats to EASST (Eastern Alliance for Safe and Sustainable Transport) who will safety test them and donate them to families most in need in Moldova.

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Safe Global is increasing its operational footprint in Europe with the opening of an expanded service centre in Amsterdam, the Netherlands. The service centre in Hoofddorp, about eight kilometres from Amsterdam Airport Schiphol will manage and service all inbound and outbound traffic of RKN and RAP active temperature-controlled containers. Tom Weir, vice president of global operations says: “This new best-in-class facility will ensure that we fulfill our commitment of world class quality and service to our customers. Our dedicated and highly trained regional service team will work faithfully and tirelessly to fulfill our mission of bringing peace of mind to our customers’ cold chain.”

Airway Billie Jo’s Page 3

We’re in the money!

US air travellers left nearly $1 million behind at Transportation Security Administration (TSA) airport checkpoints in fiscal year 2018. TSA uses the unclaimed money in checkpoint training. During FY 2018, TSA collected $960,105.49 in unclaimed money, including $85,930.04 in foreign currency. Some $72,392.74 of that total was left at JFK, with LAX second at $71,748.83 in money left behind. TSA makes every effort to reunite passengers with items left at checkpoints. Finds of cash are deposited into a special account and documented. Unfortunately, it is easy for passengers to accidentally leave wallets and loose change in bins. Travellers may use multiple bins, stack the bins, walk over to the side to sit down to put on shoes, return laptops to their carry-on bags and not realise that the bin at the bottom of their stack still has some change in it.

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Menzies enters Canada with GTO acquisition

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enzies Aviation has extended its footprint in Canada by acquiring Vancouver-based logistics service provider GTO Global Logistics. GTO provides airfreight, ocean LCL, domestic/cross border road services, storage and customs brokerage at airports and ports in Canada, and will be integrated into the Air Menzies International business division. AMI provides wholesale airfreight and express services exclusively to freight forwarders, packaging companies, customs brokers and courier agents. As part of the deal, Menzies will acquire a customs bonded warehouse measuring 930 sq m in Vancouver, which will be AMI’s first international office in Canada. GTO owner Darrell Keen, who founded the business 15 years ago, will become head of AMI’s Canadian operations, with all other employees joining AMI’s operations. Jonathan Clark, chief executive officer of AMI says: “We believe that GTO is the perfect match for AMI in Canada as they understand our needs, provide excellent service and have a proven track record of success in the region. “They have been a partner of ours for several years and already have strong relationships with airlines and shipping lines which will help grow the AMI business in Canada. I look forward to welcoming Darrell Keen and the rest of the GTO team into the Menzies family.” Parent company John Menzies has fallen into losses in the first half of 2019 due to weaker cargo volumes and the grounding of Boeing 737 MAXs. Losses in the first half amounted to £4.4 mil-

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lion compared to a profit of £8.3 million in 2018, though revenue increased from £627.2 million last year to £649.9 million. Giles Wilson, formerly chief financial officer who took over as chief executive officer in June says weaker global markets in the first half of 2019 has seen a reduction in flight schedules, cargo volumes and yields. The company also faced challenges including ending the Hyderabad cargo joint venture and costs related to disposing of Menzies Distribution. A cost and efficiency programme has been implemented to save £10 million, with the majority realised by 2020. The global commercial team has been restructured with a new sales-based incentive programme put in place to ensure a return to organic growth. Wilson says: “We continue to drive a company-wide focus on cost reduction, customer

engagement and operational discipline, with profitable growth at the forefront of our agenda. We have an increased awareness of our customers’ needs that will ensure that we are viewed by our customers as the partner of choice and recognised for our best in class operational delivery.” The cargo forwarding division, Air Menzies International posted a resilience performance in a challenging market where UK exports were lower and e-commerce slowed in the USA. Growth was achieved in South Africa and in Australia where AMI capitalised on the cargo screening regulations utilising additional equipment purchased ahead of the changes. AMI says it will continue to focus on improving profitability through the rollout of improved IT infrastructure and exploring the possibility of bolt-on acquisitions to help expand the global footprint of the business into new markets.

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OnAsset and Unilode go digital ONASSET Intelligence and Unilode Aviation Solutions are collaborating on the largest contract to digitise ULDs in aviation history. Adam Cressno, CEO of OnAsset says: “Building upon our longstanding history of innovation in leading-edge aviation-compliant asset tracking and monitoring solutions, we are proud to be in partnership with Unilode as they create the industry’s largest fleet of digitised ULDs. “With Unilode’s customer-centric focus on digital innovation, combined with OnAsset’s devices and cloud software, we are creating a new class of services that will help propel the aviation industry for years to come.” Benoit Dumont, CEO of Unilode Aviation Solutions says: “Unilode has committed to fully digitizing its fleet of ULDs to provide our customers the best solution in the industry. We’re going to change how the industry thinks of the ULD, and we intend to show the world the power of industrial IoT solutions deployed at scale. OnAsset is a great partner and we have a deep innovation roadmap to explore together.”


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GDP for Panalpina’s Frankfurt facility

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analpina’s healthcare logistics centre near Frankfurt Airport has obtained Good Distribution Practice (GDP) certification, bringing the certified network to 38 locations. The Weiterstadt facility is located near the airport as well as close to major highways and Germany’s federal road infrastructure, allowing customers to shorten lead times for intra-European and global shipments. The facility, Panalpina’s third in the Rhein-Main region alongside Moerfelden and Neu-Isenburg, passed an audit by SGS. It is equipped for hub services for multimodal transport including last-mile delivery and linked to Panalpina’s global network offering temperature-controlled air and ocean freight services. In Weiterstadt, 4,500 sq m of temperature-controlled warehouse space is dedicated to healthcare customers, another 4,600 sq m for multi-purpose use and 620 sq m is for office space. Of the healthcare part, 3,500 sq m covers temperature from 15-25C with three dedicated truck docks, and 1,000 sq m covers temperature from 2-8C with two dedicated truck docks. Volker Werner, Panalpina’s district manager for Central Germany says: “The facility is not only set up for multimodal transport; we have

Peretz to retire as UPS CFO, Newman to join from PepsiCo

Peretz

fully equipped it to meet all possible requirements of our pharma customers. Besides thermos-cover handling, re-icing and gel-pack handling, we can also take care of the temperature-controlled last-mile delivery, with 24-hour monitoring of the cargo.” Stephen Kay, regional manager of Panalpina’s healthcare industry vertical says: “In combination with Panalpina’s other European centres of excellence, we have a highly flexible set-up, where we can move products to every continent by air or ocean freight and using either active or passive cooling. Based on the customers’ requirements, we can also choose between commercial carriers or the Panalpina Charter Network with its main hub in nearby Luxembourg.”

RICHARD Peretz will retire as chief financial officer of UPS, with Brian Newman joining from PepsiCo to fill the role. Newman, who is executive vice president – finance and operations Latin America for PepsiCo will take up the role on 16 September, and will join the UPS Management Committee. Peretz, who took up the role of chief financial officer in 2015, will remain with UPS until December 2019 to assist Newman and ensure a smooth transition period. Newman has worked at PepsiCo for over 26 years, with his most recent role taking responsibility for all finance and operations activities across Latin America. David Abney, chairman and CEO of UPS says: “Brian’s deep finance knowledge and broad cross-functional experience will be a great asset as we continue our transformation. He will con-

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Newman tribute to our drive for improved growth and operating performance, and he will support our strategies focused on the long-term success of the company.” Peretz says: “I am proud to have been part of such a great company and to have participated in UPS’s extraordinary growth during my years here. I am confident in the management team and appreciative of all the opportunities I have been given throughout my career at UPS.” Peretz joined UPS in 1981 and has held various finance leadership roles, including being a key member of the company’s IPO in 1999. He was named chief financial officer of International in 2003, promoted to corporate finance vice president in 2007, named corporate controller in 2013 and became corporate treasurer in 2014.

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NEWS ACWBITEs Sydney-Santiago will be the next route that Qantas will add to its Boeing 787-9 Dreamliner network with three flights a week from June 2020. The change is part of the Australian airline’s fleet upgrade with Boeing 747s leaving the international network by the end of 2020. Lufthansa will start services between Munich Airport and Seattle-Tacoma International Airport on 1 June 2020, adding to existing flights to Frankfurt. The service will operate six times a week using an Airbus A350-900. Munich is home to well-known German brands including BMW and Siemens, and is Microsoft’s base for German operations. AirAsia has taken delivery of its first Airbus A330neo, which will be operated by long-haul affiliate AirAsia X Thailand. The aircraft will be based at Bangkok’s Don Mueang International Airport and will serve markets in Australia, Japan and South Korea. It was delivered via lessor Avalon and is the first of two A330neos to join AirAsia’s fleet by the end of the year.

Senger-Weiss to leave Gebrüder Weiss board

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einz Senger-Weiss will resign from the Gebrüder Weiss management board, leaving the Austrian logistics company on 31 December 2019. The managing director of Air & Sea is leaving for personal reasons having held various roles with the company. Following various international activities, Senger-Weiss took up the role of regional managing director Air & Sea in 2003 and became a member of the board of management in 2005, and has been in charge of the Air & Sea, sales and customs divisions ever since. Dr Rudolf Christian Stiehl, chairman of the supervisory board says: “We respect the decision of Heinz Senger-Weiss and thank him for his great commitment to Senger-Weiss Thoma the company. For 20 years, 15 years of Dr Lothar Thoma will start working in the an experienced logistics expert joins the which as a member of the management board, he has successfully contributed to the Air & Sea division from 1 September, bringing company. Thanks to his international development of Gebrüder Weiss and has had with him over 20 years of logistics industry management competence, he has all the prerequisites for managing the Air & Sea division a lasting influence on the orange corporate experience. Stiehl says: “With Dr Lothar Thoma, at Gebrüder Weiss.” culture.”

Frankfurt almost back to 2016 levels Air cargo increased by 1.5% at Frankfurt Airport in July and is almost back at levels last seen in 2016 but the market is still weak. Both airfreight and air mail performed well, with the former up 1.5% to 172,000 tonnes and the latter by 1.6% to 6,600 tonnes, with total cargo reaching 178,700 tonnes. Airport operator Fraport says the unfavourable distribution of days with one fewer Sundays only had a minor negative impact. Fraport adds that 2018 figures were skewed by handling problems, and when these are excluded, July would have seen a decline. It says the market is still negative and world trade continues to decline. Domestic and

export demand in the Eurozone continues to be affected by trade conflicts, crises in the automotive industry and political insecurity. Freighter aircraft utilisation rates remain noticeably low, but the low freight rates have resulted in an increase in the transport of perishables. USA traffic has grown 9.2% due to increased use of freighters. Direct traffic to Northeast Asia declined 8.5% with Japan and South Korea proving weak, while China was also down. Inbound African cargo increased 15.9% while Latin America was down 10.2%. European traffic increased 27.7% due to much more cargo flying via Moscow.

Airport Authority Hong Kong obtained an interim injunction to “restrain persons from unlawfully and wilfully obstructing or interfering with the proper use of Hong Kong International Airport” on Wednesday 14 August. The injunction comes after protestors flooded the terminal buildings and caused hundreds of flights to be cancelled as the airport was closed on Monday and Tuesday. Flights were returning to normal on Wednesday but with some delays and cancellations. Hong Kong was facing its tenth week of anti-government protests when protestors entered the airport on Friday 9 August. On Tuesday 13 August they blocked travellers from accessing flights by using luggage trolleys to build barriers and staging a mass sit-down be-

fore police clashed with the protestors. Cathay Pacific has condemned the disruption, saying that it believes social order and stability must be restored so that the long-term development and prosperity of Hong Kong can become a priority. The flag carrier says the protests have done serious harm to Hong Kong’s status as an international aviation hub and damaged its reputation. The airline cancelled 272 departures and arrivals but managed to operate 622. Hong Kong has been affected by protests since a bill was introduced in April to allow people accused of crimes against mainland China to be extradited. The controversial bill has been suspended but protestors are demanding that it be completely withdrawn.

Hong Kong reopens following protests

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Freight bears brunt of European slowdown

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uropean airports have had a difficult start to 2019, with the freight sector feeling the brunt of the slowdown, according to Airports Council International (ACI) Europe. In the first half of 2019, freight traffic fell by 3.5% compared to 3.3% growth in the same period of 2018, and the outlook is not good. June was down 7.1% with airports inside and outside the European Union all struggling, down 7.3% for the former and 6% for the latter.

Olivier Jankovec, director general of ACI Europe says: “The slump in freight traffic is where it really bites at the moment. And it is not getting any better, with June registering a drop of -7.1% – the worst monthly performance in more than seven years. This does not bode well for the months ahead, especially as passenger traffic usually does not remain totally isolated from trends in freight traffic.” Of the top airports, only Liege Airport registered first half growth, up 6.5% to 437,682 tonnes. Europe’s top cargo airports all saw volumes falling to various levels, with Frankfurt down 2.5% to one million tonnes, Paris Charles de Gaulle by 1.9% to 946,129 tonnes, London Heathrow by 4.2% to 805,953 tonnes and Amsterdam Schiphol by 8.6% to 767,492 tonnes. June was a difficult month for the big four, with Frankfurt down 4.8% to 165,169 tonnes, Paris by 6.5% to 159,302 tonnes, Heathrow by 6.1% to 130,858 tonnes and Schiphol by 13.7% to 123,888 tonnes.

Economic insecurity hits Brussels

Freight volumes at Brussels Airport have fallen 10% with all segments suffering largely due to growing economic insecurity. Total cargo was down 10.5% in July to 55,552 tonnes with total flown cargo decreasing 9.4% to 41,632 tonnes and trucked cargo by 13.5% to 13,920 tonnes. Full freighter volumes were down 20% to 10,588 tonnes due to airlines departing at the start of the year.

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Integrator services fell 4.1% to 17,523 tonnes, a smaller decline than previous months due to a reduction in air traffic control disruptions, and belly cargo was down 6.4% to 13,522 tonnes. Between January and July, total cargo was down 9.4% to 389,473 tonnes with flown cargo decreasing 10% to 288,623 tonnes. Full freighters were down 16.7% to 79,616 tonnes, integrators by 9.7% to 117,521 tonnes and belly cargo by 3.6% to 91,486 tonnes.

Old Words

During August, we are looking back at old editorial comments that were once a feature of Air Cargo Week

ighlights last week included a visit to the latest Tom Hanks movie, ‘Castaway’. The auditoriums at modern cinemas, with their distinctly different classes of seating with extra space, pitch and comfort, are very much as one would expect to find when the A380 starts passenger operation. In that atmosphere it was a little disconcerting to realise that the audience was soon going to be involved on-screen in an aircraft accident. All part of the plot, it’s only a film after all, revolving around a man working for a delivery company - and it quickly became very clear which one - in what turned out to be the biggest, longest, widescreen stereophonic cinema commercial ever made for FedEx. Although the plot of the film must have caused some of the company’s executives to squirm - the hero is marooned on a desert island when his FedEx MD-11 ditches after an incident that may have been caused by some “mistakenly packaged” dangerous goods - the men who gave the go-ahead to use the FedEx name must now be feeling over the moon. “They just walked in one day and asked if they could use the name in a film,” a FedEx spokesman said. “Memphis asked: ‘What is the film about?’ and they said: ‘Well, first of all we crash one of your planes’” The film company’s decision to opt for FedEx is quite understandable. In the US the name has become something of a generic term for delivery, as

biro and hoover have become for their products. The end result is a marketing man’s dream. Never before in the field of screened commercials have so many logo-emblazoned FedEx aircraft and vehicles roared around a movie theatre for so long - nearly three hours of it, complete with plenty of name-checks for FedEx baseball caps and even a televised appearance by Fred Smith. The film’s main theme was about poor old Tom Hanks being washed up as a castaway on a very inhospitable southern Pacific island where the monotony, lots of it, was only relieved by brightly branded packages, lots of them, being washed ashore from the stricken aircraft to be rescued and gathered by Hanks - his screen persona as a stalwart company man have reassured the men in Memphis - who stacked the distinctive packages with their logos all in the right place for the audience to see them and then religiously refrained from opening them until his circumstances got desperate. One slight slip here. If this guy knew as much about the delivery business as he was supposed to, it would have been considered reasonable by at least some of the audience if he had immediately ripped his way through the packages in search of one of the mobile phones that fill the cargo holds of just about every aircraft flying at the moment. He could then have punched in 911 and the film would have been over in half the time. One down to Hanks, but only on a technicality. 26 February 2001

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dangerous goods

‘Safety first’ must always be the

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he International Air Transport Administration (IATA) kindly spells out for the uninitiated exactly what ‘dangerous goods’ are. “The thought rarely crosses our minds, but many of the goods we use on a regular basis pose dangers to the aircraft. For example, lithium batteries, dry ice and aerosol whipped cream are dangerous goods. These products may seem harmless; however, when transported by air they can be very dangerous. “Vibrations, static electricity, and temperature and pressure variations can cause items

to leak, generate toxic fumes, start a fire, or even explode if these products are not handled properly.” More soberly, it continues that a “dangerous good (aka hazardous material or hazmat) is any substance or material that is capable of posing an unreasonable risk to health, safety, and property when transported in commerce. Identifying dangerous goods is the first step to reduce the risks posed by the product with proper packaging, communication, handling and stowage.”

Training out danger

There are growing numbers of shippers who present consignments unaware of dangerous goods regulations. Some industry observers suggest four out of ten shipments are despatched in ignorance of such safety measures. According to Stephanie Congiusta, lead sales and marketing administrator at the New Jersey-based Bureau Of Dangerous Goods (BDG)

industry training company: “Being that BDG offers dangerous goods training, software, and consulting services, we unfortunately encounter situations like this all too often. While this figure is not alarming for us to hear, it is concerning as knowledge of and compliance with the regulations are crucial to ensure the safe transport of dangerous goods.” With the millions of smaller shippers opening up every year, from the growth of e-commerce, how can they be made aware of the rules applied to dangerous goods shipments, for example, lithium batteries? “This is a great question and is one we take into consideration often when promoting our services. “Information is easier than ever to access with the prevalence of the internet. We hope that through the growing popularity of e-learning, newsletters, social media, and online resources that more dangerous goods employers will gain an awareness of the dangerous goods regulations,” says Congiusta. BDG offers on-site, online or webinar training sessions. “The most popular for those undertaking airfreight training programmes are online products – self-paced online training and instructor-led webinars – are the most popular methods of training right now,” she says. “The reason for the rise in popularity of these training methods is due to web-based training being cost-effective, easily accessible, flexible with scheduling, and it eliminates the need for travel. Self-paced online training is the ideal training method for those who can’t dedicate an entire day to training and want to go through it at their own pace and on their own schedule. Our selfpaced online training is also accessible 24/7 from anywhere in the world and can be taken on any computer, tablet, or smart phone with an internet connection. For those who prefer instructor-led training, our webinars are the best of both worlds offering both convenience and an instructor to guide them through their training. The other benefit with our instructor-led webinars is that the training content is customisable. Customised training focuses on

the specific dangerous goods and job functions of the dangerous goods employees and keeps the training relevant.”

Changing times

The company was founded 35 years ago by Russell Bowen and is currently run by his son Michael. Congiusta says: “The Bowens encourage and support each of their children’s activities and interests. While it’s still too early to say, we would be happy to see any of them carry on the Bowen legacy!” In that time, Congiusta acknowledges that the world of hazmat training has changed. “While we could probably write a book about this, and perhaps we should, we will keep it brief,” she says. “Our founder created BDG because like many entrepreneurs he knew that there had to be a better way to educate shippers, carriers, and handlers of dangerous goods. “Fast forward 35 years and there are now

Ignorant DG shippers pose safe

ACCORDING to Matt Pearce, managing director of UK-based dangerous goods training provider TSA (Transport Security Associates), the fact that some 40% of shippers admitted to being ignorant of the dangerous goods regulations governing airfreight is as much a worry to him as it is to IATA’s head of cargo, Glyn Hughes. “Yes, if the statistic is correct, we share the concern which is why training via awareness courses, as well as compliance courses are key for handlers, forwarders and transport companies who may even be handling undeclared DG

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as a consequence. As part of the HAE Group, TSA offers a full range of DG courses in classroom and an online awareness course. CBT – Computer Based Training across the supply chain and with any area that has rapid growth training is always a neglected area,” says Pearce. TSA believe best practice is for transportation providers and companies with shipping departments, as with IATA Cargo Agents, ensure there are a minimum number of staff that must be DG trained to the required standard as part of their standard service offering, notes Pearce.

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dangerous goods

he mantra for dangerous goods and cost-effective than ever.” BDG is looking forward to adding new products and services and is currently developing more function-specific self-paced online training. BDG is also expanding. It currently has offices in Dayton, New Jersey; Charlotte, North Carolina; Miami; and most recently Minneapolis, Minnesota.

Battery-powered danger

many educational institutions offering dangerous goods training, software, and consulting services such as ourselves. There are many more resources than there once was which is much needed considering the ever-growing prevalence of dangerous goods across a multitude of industries. Technology is playing a big role in dangerous goods compliance whereas it was virtually non-existent 20+ years ago. “For example, several organisations offer dangerous goods compliance software to electronically generate dangerous goods shipping papers. Software such as ShipHazmat uses built-in regulatory logic technology to help shippers save time, increase efficiency, and minimise the risk of incidents. “Another way that technology has changed the educational landscape is what I mentioned regarding web-based training. Many organisations who preferred on-site/classroom training are now transitioning to online or webinar training. Technology and the internet make staying compliant easier, more accessible,

In June, the UK Civil Aviation Authority (UK CAA) hosted its first international lithium battery workshop to explore key issues faced in the safe transport of lithium batteries. Over seventy stakeholders attended the twoday workshop from manufacturing, testing, logistics, airline operators, government agencies and aviation regulators. The group discussed lithium batteries and the risk to flight safety and evaluated practical solutions that could see the reduction of non-compliant shipments in air transport. The UK CAA’s International Group hosted the workshop, with sponsorship from the UK Government’s Department for Transport, Aviation Policy and Strategy, Aviation Strategy and Consumers Division. Keynote speeches and panel discussions included representatives of the International Civil Aviation Organisation (ICAO) and the International Air Transport Association (IATA) as well as guests from the US Postal Inspection Service and Cargolux.

Over the coming weeks, the UK CAA will produce a report of the workshop with the potential action plans for consideration and implementation.

Industry first

In March, Air France KLM Cargo (AFKL Cargo) became the first airline group to adopt the IATA’s newly developed Dangerous Goods AutoCheck (DG AutoCheck) for the acceptance of dangerous goods shipments. “Air France KLM Cargo handle in excess of 1.5 million shipments per year - 173,000 of these shipments require Dangerous Goods handling. 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,” said Marcel de Nooijer, executive vice president of Air France KLM Cargo. DG AutoCheck is a digital solution that facilitates the acceptance of dangerous goods by checking the compliance of the Shipper’s Declaration for Dangerous Goods (DGD) against all relevant rules and regulations contained in the IATA Dangerous Goods Regulations (DGR).

Some recent FAA DG civil penalties $97,500 against Agrarflug Helilift of Ahlen, Germany June 2019 $160,500 against Woodioso Technology of Hong Kong June 2018 $1.1 million against Braille Battery of Sarasota, Florida December 2017

High energy

Properly manufactured and tested lithium batteries are safe. However, their high energy levels present a risk of the battery igniting and exploding if they are not treated with care or have a manufacturing fault. Eric Gillett, the UK CAA’s dangerous goods policy specialist, said: “I am delighted that we were able to gather such a diverse range of globally renowned experts and I’m excited at the commitment shown by all, to work together on this important safety issue.”

safety threat to global airfreight What constitutes a dangerous good is constantly evolving, reinforcing the need for constant training. Pearce says: “Lithium power banks which are normally moved as Lithium Ion batteries; however, a cheap torch is now added during the manufacturing process so changing the description to Lithium Ion Batteries in equipment. “The difference being the battery on its own can only move as Cargo Aircraft Only (CAO) with the added torch they can now travel on passenger or cargo aircraft.”

Pearce says: “TSA has recently re-established its accreditation with IATA for the transport of Dangerous Goods including Class 7 and we are due to complete the re-accreditation of our DG training minus Class 7 with the UK CAA at the end of September. “In addition, we are also re-validating our DG training with the Irish Aviation Authority and hope to complete very soon with them.” Ten percent of the HAE Group’s total volume is DG, which is via various channels, the group GSSA business, cargo handling and solutions.

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latin america

HAE Group is looking for continued growth

H

aving entered the Latin American market eight years ago, HAE Group is looking at regional acquisitions to continue to grow, Americas president Ian Hutchinson tells Air Cargo

Week. HAE Group entered the region in 2011 with an office in Sao Paulo, Brazil followed by Santiago, Chile in 2012. Offices in Lima, Peru and Bogota, Colombia have since been added to HAE’s network. Hutchinson is happy with business performance this year, saying: “We are fortunate that our business continues to grow in both countries for both our GSSA business and our solutions business. This is both with online and offline carriers.” The outlook for the year is good, with Hutchinson commenting: “There is always a seasonal peak for us in Chile in the second half of the year,

particularly in the perishables sector and Brazil continues with strong demand for our online and offline carriers.” In Brazil, HAE represents Ethiopian Airlines and a number of smaller offline carriers and offers its offnet service. In Chile, it offers ser-

vices to Air Europa, Swiss WorldCargo, Air New Zealand and China Airlines and offers the offnet product. Buenos Aires, Argentina is the next place HAE would like to add to its network. For now, it is working on continuing to develop offline services in Lima and Bogota with support from the regional headquarters in Santiago. Hutchinson says: “We would like to continue to grow and are looking at regional acquisitions to help us do that in Argentina and other countries. We then also believe we can offer airlines representation in clusters of countries helping then reduce costs and creating opportunities for ourselves.” So far HAE has not moved into Central America, and will not do so on a speculative basis. Hutchinson says competition is intense, narrow body capacity is plentiful and HAE does not have the experience.

He adds: “We have a growth via acquisition strategy and would be keen to work with local heroes who could become part of our group.” Short and medium term, Hutchinson does not see any drastic developments but pharmaceuticals and perishables are growing. He says: “Like Asia we still see LATAM as an area of growth, as we would like to increase our share of activity and we grow representation in new countries.” Operating in Latin America is not without challenges, mainly due to currency volatility, local laws and foreign ownership restrictions. HAE has offices globally so it is not like it has never dealt with these issues before. Hutchinson says: “HAE is well versed in rising to the challenge of non-traditional markets so the hard work on establishing, acquiring of developing business in the emerging markets is what we like to do best!”

Fresh products drive healthy growth

For IAG Cargo, Latin America is experiencing strong growth, particularly in the perishable, automotive and pharmaceutical sectors, regional commercial director for Latin America Rodrigo Casal tells Air Cargo Week. Capacity is being added to markets including Brazil to give customers more flexibility and availability. IAG Cargo also includes Florida in its LATAM region, and that is a key player in its business. Casal says around 60% of tonnage in Florida is from the LATAM region, making it a major hub for inter-regional cargo and for links to North America and beyond. Casal is confident about 2019, saying: “We are feeling positive about the rest of the year and hope that the strong growth seen in H1 continues throughout the second half of 2019. Our performance was really strong in H2 last year and we’re looking to build on this and continue to provide an excellent service to our customers.” The busiest trade lane goes via Spain, accounting for over a quarter of IAG Cargo’s Latin American business. Casal says double-digit growth between January and May was due to strong demand for perishables including fish, berries and avocados. There is also strong growth into Asia, with Casal saying: “The main driver for this is China, where we’re seeing consistently high demand for high value perishables like stone fruits and Chilean salmon.” Perishables have traditionally been a major export, but automotive parts are also flying out of Latin America. Casal says they primarily originate from Mexico and Brazil where several international automakers have large manufacturing operations. He says: “Our global network and services into Spain mean that we offer our customers plenty of options to transport their cargo to assembly plants in Europe and beyond. Our Critical and Prioritise products offer speed and reliability to ensure items like crucial spare parts are accelerated through our network to their final destination.” This year, IAG Cargo has also added year-round services to Puerto Rico, the region’s biggest producer of pharmaceuticals, letting customers experience Madrid’s Constant Climate Centre. Casal says: “LATAM is not traditionally a significant player in pharmaceutical trading, but increased flights to Puerto Rico and the use of our Constant Climate Centre in Madrid will grow the market.” He adds: “We’re also planning to grow capacity out of Ecuador and Lima, the capital of Peru, by increasing frequencies to Spain in the third quarter of this year. This is the busiest business period of the year for Peru and reflects our commitment to expanding our service to wherever our customers need it.”

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he pretends to know what he’s talking about

Crash, bang, wallop Claims frequency up due to factors such as higher repair costs, increased values at risk and low deductibles. Airway Repair Bill reports from the hangar.

A

viation collision/crash incidents are the second top cause of insured losses globally overall behind fire and explosion incidents according to analysis from Allianz Global Corporate & Specialty (AGCS) of more than 470,000 insurance industry claims over the past five years. Aviation claims from this data set show collision/crash incidents account for over half the value of all claims (59%) and more than a quarter by number (27%). Such incidents do not just include major crashes; they also incorporate events like hard landings, bird strikes and runway incidents such as incursions and excursions - the average claim for which is now almost €1.4m/$1.6m.

can be more challenging and expensive to repair,” says Smith. “Aircraft manufacturers may not have envisaged the realities of repairs when developing these materials a decade or so ago.” While safer and more reliable, aircraft engines are also now much more expensive to repair or replace. Top-of-the-range engines can easily cost more than $40m each – just under the value of a whole 737 a decade ago.

5. More ground incidents at congested airports

“With increased air travel, congestion in and around airports has become an issue,” says Smith. “In many cases airport infrastructure has not kept pace with the rapid growth in aircraft numbers. “With more aircraft on the ground, servicing areas and aprons have become more congested and this is resulting in an increase in the number of collisions with other aircrafts or ground handlers.” Analysis of 523 loss events at 14 German airports last year by AGCS shows that damage to vehicles on the tarmac is the leading cause of insured losses. More than half of these events are due to collisions with pushback tractors, aerial work platforms or washing systems.

Six aviation loss trends on the radar

1. Safety milestones and losses continue

With more reliable engines and technology and following significant improvements in airline risk management, serious accidents are far fewer. According to the International Air Transport Association (IATA), there was just one major accident for every 8.7 million flights in 2017. A Prime Air Boeing 767 crashed in Trinity Bay in Texas in February 2019, killing three people onboard the aircraft at the moment of the accident. The cargo Boeing 767 was en-route to Houston George Bush Intercontinental Airport from Miami International Airport. “For the first time in more than 100 years of aviation history in 2017 there were no fatalities on a commercial airline,” says Kevin Smith, global head of aviation claims at AGCS.

Final resting position of FedEx MD-10-10F after it left the runway during a landing at Ft. Lauderdale-Hollywood International Airport on October 29, 2016. NTSB Photo

2. Human error a major loss factor

Technological advancements and improved quality control of manufacturing and maintenance has significantly reduced the number of accidents caused by mechanical or structural failure. Consequently, human error is a more significant cause of loss. “Pilot error is a major factor behind many aviation accidents,” says Smith. “It has been estimated that as many as 95% of airline accidents involve human error in some capacity. Aircraft are now very safe but most accidents involve errors of judgement, such as taking off in bad weather or the way in which a pilot reacts in adverse conditions.”

3. Increasing claims frequency and aircraft values

While catastrophic air crashes are now far less frequent, the overall frequency of aviation claims is slightly up, due to factors such as higher repair costs, increased values at risk and the relatively low deductibles maintained by airlines in a highly competitive aviation insurance market. The average deductible at $1m today is around the same as it was in 1982, yet aircraft values have increased three fold, Smith explains. Claims frequency is up, but this is not the only factor. “The size of loss has increased and deductibles have not kept pace with technology and values. A $5m loss today would probably have cost just $1m five years ago and been within the deductible,” says Smith.

4. Costly composite materials and more expensive engine repairs

Composite materials in aircraft manufacturing took off around a decade ago. “Composite materials have many benefits, but they

6. New loss drivers: cyber and reliance on technology

Aircraft and airlines are increasingly reliant on technology. An A350 aircraft today sends some 400,000 computer messages to ground controllers during a six hour flight, 60% more than the older A380. Then there is the threat to the sector posed by technology or cyber-related losses, such as physical damage to aircraft or business interruption such as IT system outage. Cyber risk ranks as the number one concern for the aviation sector for 2019.

On November 2, 2002 at JFK International Airport in New York, a jetBlue A320 is at rest on Runway 22R after its nose gear failed to deploy properly

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Profile for Azura International

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