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The weekly newspaper for air cargo professionals No. 1,090

20 July 2020

Cargo and the other Women ...

Swissport secures $170m US CARES Act support SWISSPORT North America and the US Department of the Treasury have signed an agreement under the US Coronavirus Aid, Relief, and Economic Security (CARES) Act. The agreement provides Swissport with approximately $170 million of additional funds for payroll support during the disruption that the COVID-19 pandemic has caused in the aviation industry. Swissport also recently completed a UK Scheme of Arrangement and Consent Solicitation which creates the ability to raise significant additional liquidity. Swissport North America agreed on July 10 a Payroll Support Program agreement (PSP Agreement) with the US Department of the Treasury under the CARES Act. Under the terms of

the PSP Agreement Swissport expects to receive a total of $170.4 million of financial assistance, of which $111.9 million will take the form of a grant and $58.5 million in the form of an

unsecured, non-amortising 10-year promissory note. Swissport expects that the proceeds from the PSP Agreement will be disbursed in three instalments. The first

instalment was received on July 10 by Swissport. Further instalments are expected to be received by Swissport by the end of July and the end of August 2020. The interest rate payable on the promissory note will be fixed at 1% in cash and 3% PIK (payment in kind) rates each year thereafter. The PSP Agreement provides, among other things, that the PSP funds must be used exclusively for the continuation of payment of wages, salaries, and benefits to qualified employees of Swissport in the United States. The PSP Agreement between Swissport and the Treasury is consistent with the standard form of PSP agreement for air carrier contractors that has been made available to the public by the Treasury.

TIACA announces search for Director General

he International Air Cargo Association (TIACA) announces the new director general role, created as part of the association’s transformation, is now open for applications. The director general will act as the CEO of TIACA and will lead the modernised association and realise its new vision for a safe, profitable and united air cargo industry that embraces modern technologies and practices to sustainably and fairly serve trade and social development worldwide. The new director general will report to the TIACA board and be in charge of financial and operational

management of the Head Office in Miami, the planning and execution of the new TIACA strategy and delivery of TIACA’s projects and programmes. “Once its transformation is complete, the new TIACA will be a more agile association, able to respond to industry needs. TIACA will need a strong and equally agile leader to raise its profile, expand and deliver the new agenda to increase member satisfaction,” said Steven Polmans, TIACA’s Chair. “I am confident, with the right person in charge, the association will be able to represent the interests of the whole air cargo community with strong industry pro-

grammes, effective global and regional partnerships and expanded membership base.” Applications will be accepted via email to TIACA’s Selection Committee until August 31. To ensure business continuity until the next director general is appointed, Céline Hourcade is heading the association as its transition director. The new director general is not required to be Miami-based but must be willing to commit substantial time onsite at the headquarters. The role’s anticipated starting date is November 1 2020. More information is available on the TIACA website.

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INSIDE G’DAY IFCBAA

THE boards of the Australian Federation of International Forwarders (AFIF) and Customs Brokers and Forwarders Council of Australia (CBFCA) ... PAGE 2

OMAN AIR DELIVERS CARGO

OMAN Air continues to serve the Omani nation with 69 chartered cargo-only flights from April to June, including the highest-ever cargo ... PAGE 3 BOLLORÉ LOGISTICS OPENS NEW OFFICE

BOLLORÉ Logistics Madagascar has opened a new office in the Ivato International Airport, Antananarivo, the capital of Madagascar ... PAGE 4

NEW INTUITIVE SUPPLY CHAINS

THE coronavirus has caught supply chains napping around the world – from a too heavy reliance on certain territories for the source of ... PAGE 7

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Airlines and airports decry unco-ordinated EU external border re-openings DESPITE agreeing at EU Council level to a scientific-based approach and endorsing their own “white list” recommendation just one week ago, EU States are adopting extremely diverging lists. As a result, there is very little clarity and significant uncertainty on which citizens can travel where. This has effectively led to a patchwork system of travel restrictions and border controls throughout Europe which may remain in place for weeks or months to come. A4E and ACI EUROPE, representing Europe’s airlines and airports, today urged EU and Schengen States to do away with politics and follow their agreed, fact-based approach towards lifting the ban on non-essential travel to the EU and Schengen area for countries where the epidemiological situation allows. The two associations also support regular updating of the white list in the coming weeks, including its expansion to other non-EU/Schen-

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gen countries which fit the criteria proposed by the European Commission and approved by the EU Council, in order to support air transport and European tourism’s recovery.

Diverging implementation

Examples of diverging implementation of the EU Council recommendations include: – Belgium keeping its borders closed to travellers from the 15 white-listed countries until further notice; – Germany reopening its borders to eight countries from the white list while requiring reciprocity from China, Japan and South Korea before lifting entry restrictions from those countries; – Hungary announcing that it will not open its borders to non-EU countries except Serbia for the moment; – Poland extending its flight ban until July 14,

except for flights from the EU, Canada, Albania, Georgia, Japan, Korea, Montenegro and Ukraine – thereby not using the whole list of approved countries; – Spain reopening its borders on 04 July to 12 countries from the white list – however residents of Algeria, China and Morocco will only be able to travel to Spain if these countries reopen their borders to Spanish residents in a reciprocity move. “These diverging national approaches are hurting our single market and will slow down aviation and tourism’s much needed recovery,” said Thomas Reynaert, managing director of Airlines for Europe (A4E). “The situation is also creating an uneven playing field within Europe at a time when our sector is still struggling for survival,” Reynaert added. “We can’t afford to exit the situation as chaotically as we entered it,” said Olivier Jankovec, director general at ACI EUROPE.

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“EU countries are not sticking to their own agreed plan. This is not conducive to consumer confidence and it is clearly undermining efforts to restore air connectivity.” European aviation remains in a severe and unprecedented crisis. Annual losses are projected to total -€82 billion, globally – the worst year in aviation’s financial history. Europe’s airlines are projected to lose €19 billion and are among the top three worst affected regions, globally. The latest forecast for European airport revenue losses for the full year 2020 stands at a staggering €32.44 billion. Continued uncertainty about travel restrictions, quarantines and the pandemic’s evolution will affect consumer confidence in the foreseeable future, making a harmonised and co-ordinated approach to the re-opening of borders even more imperative.

Manston Airport gets green light as cargo hub PLANS to transform Manston Airport in southeast England have been given the go-ahead to be developed into an airfreight hub serving the southeast corner of the UK. The decision paves the way for hundreds of jobs to be created and a multi-million pound boost to east Kent. Transport ministers were due to rule on the future of the site back in January and then May, but both times the decision was delayed. BDB Pitmans has secured a Development Consent Order (DCO) for Manston Airport, Kent in the southeast of England, the first-ever airport project to receive a DCO issued by the Department for Transport. Manston Airport will be able to re-open in the first quarter of 2023. The UK government says: “The development would support the government’s policy objective to make the UK one of the best-connected countries in the world and for the aviation sector to make a significant contribution to economic growth of the UK. “The Secretary of State accepts that there is the potential for short term congestion and delays on the local road system caused by the development to occur before appropriate mitigation is delivered; however, he considers that the residual cumulative impacts would not be severe and gives limited weight to these effects.” BDB Pitmans team led by partner Angus Walker, acted on behalf of the developer, RiverOak Strategic Partners (RSP). The decision comes after two years of scrutiny by the Planning Inspectorate and Department for Transport. BDB Pitmans has a 100% success record when it comes to securing DCOs and has acted for clients in over a fifth of the successful applications since the

powers were introduced in 2008. RSP has pledged £300 million to rebuild Manston Airport as a global freight hub with some passenger capacity, which it hopes will address gaps in the UK’s trading infrastructure, providing dedicated airfreight capacity adjacent to the London airports system and to provide a significant boost to the UK economy. Walker comments: “We are delighted to have secured consent for a development that is anticipated to bring 23,000 jobs to East Kent creating a significant boost to the region and the wider economy. “To secure the first-ever DCO for an airport is a significant achievement: not least given the successful challenge to the Airports National Policy Statement (ANPS) putting Heathrow

expansion in doubt. “It is testament to the hard work of the sector-leading team at BDB Pitmans that we are able to maintain a 100% record when it comes to successful grants of DCOs for clients. “To do so for a project of such national significance cements our position as sector-leading for infrastructure projects.”

Cargo services The DCO will come into force on July 30 2020. Construction will begin in 2021 with the airport aiming to operate first cargo services in the first quarter of 2023. The DCO as applied for under the 2008 Act would grant development consent for the re-opening and development of Manston Airport into a dedicated airfreight facility able to handle at least 10,000 air cargo movements per year whilst also offering passenger, executive travel and aircraft engineering services. The proposals included the use of some

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of the remaining decommissioned airport infrastructure and the introduction of new facilities including: the upgrade of Runway 10/28 and re-alignment of the parallel taxiway to provide European Aviation Safety Agency compliant clearances for runway operations; construction of 19 European Aviation Safety Agency compliant Code E stands for airfreight aircraft with markings capable of handling Code D and F aircraft in different configurations; installation of new high mast lighting for aprons and stands; construction of 65,500 sq m of cargo facilities; construction of a new air traffic control tower; construction of a new airport fuel farm; construction of a new airport rescue and firefighting service station; development of the Northern Grass Area for airport-related businesses; highway improvement works; extension of passenger service facilities including an apron extension to accommodate an additional aircraft stand and increasing the current terminal size; an aircraft maintenance, repair and overhaul facility and end-of-life recycling facilities; a flight training school; a fixed base operation for executive travel and business facilities for aviation-related organisations. Before its closure, cargo flights from the airport were operated by Cargolux to cities such as Johannesburg, Luxembourg, Maastricht and Nairobi; and by Saudia Cargo to Amsterdam, Dammam, Jeddah, Johannesburg and Nairobi.

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ON YER BIKE IN COVID-19 LOCKDOWN THOUSANDS of essential pharmaceuticals have been delivered direct to the homes of UK housebound patients during the Covid-19 lockdown by Peli BioThermal’s Paul Terry making doorstep deliveries on his bicycle. The keen cyclist, who is director of sales EMEA at Peli BioThermal, joined fellow riders at the Banbury Star Cyclists’ Club who were enlisted to help home deliver prescription drugs to housebound people. The two-wheeled delivery service

G’DAY IFCBAA THE boards of the Australian Federation of International Forwarders (AFIF) and Customs Brokers and Forwarders Council of Australia (CBFCA) have reached agreement to form a single peak body and to change their current business names to the International Forwarders and Customs Brokers Association of Australia (IFCBAA) Ltd, effective 1 July 2020.

Single body

has proved to be a vital lifeline for vulnerable people having to stay home to protect themselves during the pandemic which has seen Terry make dozens of doorstep deliveries alongside the bicycle brigade of volunteers at the cycling club. Between them they have delivered 872 prescriptions representing almost 4,000 individual items via journeys totalling 3,170 miles. In doing this they have collectively cycled up hills that are the equivalent of four times the height of Mount Everest and all of this has been achieved without a single puncture. Terry’s personal effort saw him cycle over 100 miles and climb a total of 4,500 feet, in addition to organising the loan of some of the company’s temperature controlled shippers. Terry said: “We were pleased to support the efforts of the volunteers by supplying our Crēdo ProMed products to riders to use for any +2C to +8C temperature sensitive deliveries along with more regular prescriptions. The products protect medications including insulin and other temperature sensitive drug products. There are a core group of cyclists at the club who volunteered to make daily deliveries while they are furloughed from their jobs.”

Having listened to members over recent years, the boards of both AFIF and CBFCA have agreed that the industry “requires a single body to represent the commonality of interest between international freight forwarding and customs clearance functions”, in the provision of international trade logistics and supply chain management services. IFCBAA chair Paul Golland said: “The boards and members endorse the new single body, IFCBAA, being better

placed to respond to members’ issues and concerns, with far-reaching experience and a greater united front for our industry.” IFCBAA will continue to operate as a not for profit organisation for the benefit of members, offering a wider range of services and products, with greater economies of scale. IFCBAA represents over 400 corporate and 1,500 individual members’ specific interests in the international freight forwarding and Customs clearance community.

CBFCA In 1904, fourteen Australian businessmen came together to determine ways and means for businesses to be appropriately represented in terms of Customs and transport issues. At that meeting the Customs Agents and Transport Association of New South Wales was born. The foresight of these strategic thinkers was honed over the next hundred years through the Customs Agents

Federation of Australia, the Customs Agents Institute of Australia, the Customs Brokers Council of Australia and then into the Customs Brokers & Forwarders Council of Australia (CBFCA).

ABF pups looking for foster homes

The Australian Federation of International Forwarders (AFIF) was created in July 1996 following the merger of two distinct organisations, namely: The Australian Federation of Airfreight Forwarders – (AFAFF) formed as a Federal body in 1977 and The International Forwarders Association of Australia (IFAA) representing the Seafreight Forwarders (formed in 1976). The merger was deemed to be a natural progression which mirrored the business of its combined membership, most of whom were active in both air and sea transport. Existing and new members could elect to be represented in the Air and /or Sea division of the new entity.

tracking offer further advantages. Customers benefit from quick, tailor-made solutions, both in the air and on the ground. “Especially given the current tense market situation, we are pleased to be able to continue writing the success story of SAB. A connection to the entire US Midwest is an important milestone,” said Tim-Oliver Kirschbaum, CEO of Senator International. The company has been operating its own transatlantic cargo flight, known as the Senator Atlantic Bridge, since 2016. The company operates several weekly flights between Frankfurt-Hahn and Greenville-Spartanburg. In 2018 the flight schedule was expanded to include Johannesburg with the launch of the Senator Africa Bridge.

THE Australian Border Force (ABF) is on the search for volunteer foster carers to provide a home for the next generation of Detector Dogs. The ABF Detector Dog Program plays a vital role in our enforcement capability at the border. Working in a range of environments across the country they are routinely tasked to search luggage, parcels, mail, air and sea cargo, cargo containers, vessels, vehicles, aircraft, structures and people. ABF Detector Dogs are trained to search for narcotics, currency, explosives, firearms and tobacco. Last year Detector Dog teams made over 2,000 detections of illicit substances and prohibited items across airports, sea ports and postal gateways. The ABF puppy foster carer programme allows individuals or families to enjoy the fun of raising a puppy, while at the same time making an important contribution to the security of our borders. Becoming a foster carer for the Detector Dog Program is also a good way of enjoying a canine companion without the costs associated with dog ownership. The ABF will cover all costs associated with caring for the pup, including food, veterinary needs and equipment while also providing expert advice and training. In return, carers provide a safe home for the pup and also get them used to the sights, sounds and smells of their suburban areas, priming them for working in the busy ABF environment. To become a foster carer you need to live in the Melbourne or Geelong area.

UK’S Border Operating Model recognises the value of freight forwarders

tion from government for its crucial role WITH the announcement by the UK in the UK’s international trade. government of the Border Operating “However, we remain concerned that Model that will take effect from the end the information delivered was not made of the Transition Period, the trade assoavailable to trade earlier and that some ciation for UK freight forwarders said it of the details appear to be at the conis “keeping its fingers crossed” that its ceptual stage, with detail lacking. members, the companies that manage “This will make the time frames for cross-border trade between the UK and consultation and then devising the EU, will have enough time to make the appropriate IT systems extremely necessary preparations to facilitate the consider what they need to do, collect challenging. revised arrangements.  “Even with a phased transition that Robert Keen, director general of the data, appoint someone to act on their British International Freight Association behalf and give the intermediary the comes with the new Border Operating Model, and the commitment to a further (BIFA) says that the information con- necessary information. “Government appears to have woken £705 million investment to fund new intained in the documentation suggests a more cohesive approach to managing up to the fact that Customs procedures frastructure, jobs and technology at the the UK’s trade flows and regulatory pro- are complicated and are not simply GB-EU border, we remain concerned on a number of issues, including the about ticking a few boxes. cedures with the EU. “Perhaps it is evidence that the freight recruitment of staff qualified and expeHe said: “The announcement makes it very clear that importers/exporters, forwarding sector, which manages rienced in Customs procedures, and the lack ofsq available time toand trainoffice newcommanyhas of moved those Customs procedures, is 11,000 in particular those that have previously Agility Spain into a state-of-the-art, m warehouse getting some welcome only traded with the EU really need to atfinally facility ZAL Port (Prat) in the Port ofrecogniBarcelona.ers, which is not a five-minute job.”

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AFIF

SAB’s new Chicago Rockford destination

HAMBURG-based Senator International has expanded its SAB (Senator Atlantic Bridge) with another American destination. Chicago Rockford International Airport will be served weekly with the self-managed Boeing 747-400 BCF. The departure point and destination in Germany is Frankfurt-Hahn Airport. Chicago Rockford is located 95 km northwest of O’Hare International Airport in Chicago. As such, the new North American destination provides “an optimal distribution option for the entire Midwest of the USA,” said Senator. The self-managed flights allow airfreight customers a high degree of flexibility and security. Special warehouses at the respective airports, 24/7 control towers and real-time

Oman Air delivers cargo to serve the Sultanate

man Air continues to serve the Omani nation with 69 chartered cargo-only flights from April to June, including the highest-ever cargo load the airline has carried. Oman Air has delivered cargo from nine cities in India, Pakistan, China, Iran, Malaysia and UAE, for the Royal Oman Police, Ministry of Travel and Tourism and several commercial customers. Twenty-seven flights were operated in co-ordination with Omani Ministry of Health, using wide-body aircraft, with a total freighted volume of over 386 tonnes. Another 42 cargo flights contributed to the transportation of over one million kg of food, commodities and medical equipment to the Sultanate, in co-ordination with several governmental and private-sector clients. Three of the flights, from Shenzhen, China delivered medical supplies for the UN to help people in Yemen. One flight, an Airbus A330 from Bangalore, India, to Muscat, delivered 49.5 tonnes of fruit, vegetables and other perishable food to the Sultanate, which is the heaviest cargo delivery Oman Air has transported in one flight. In the course of operating 25 flights to repatriate passengers to and from the Sultanate, Oman Air has also brought over 248 tonnes of food and supplies to Muscat using the planes’ cargo capacity. Oman Air’s international cargo network, in co-ordination with accredited freight forwarders and using the latest cargo applications,

provided shipments to a number of European cities through passenger flights to London, Frankfurt and Paris. Throughout all these flight operations, the airline has paid close, careful attention to safety requirements for all passengers, crew, support staff and the cargo it has delivered. Oman Air maintains constant communication with airline manufacturers and safety experts to ensure that it meets or exceeds the world’s highest standards. To ensure that passengers, crew and staff are protected, the airline has instituted an expansive range of health and safety requirements related to personal protective equipment, cleaning, distancing, personal hygiene and cargo-related hygiene. While scheduled flights are not authorised, Oman Air will continue to serve the Sultanate by operating flights as needed for passengers or delivering cargo for official and commercial customers.

LATAM’s COVID-19 milestone

LATAM has marked the largest mask shipment carried on a single fligh by the airline when it landed in São Paulo, carrying 11.8 million masks The LATAM flight carried the largest amount of surgical masks transported since the operation with the Ministry of Infrastructure to bring supplies to fight COVID-19 began. The aircraft transported 11.8 million masks, a record compared to another one of the company’s flights, which arrived in Brazil on June 2 with 9.2 million masks. The flight was number 35 out of over 40 flights arranged by the Federal Government to carry supplies from China. Since May 6, the country has already received 220 million surgical and N95 masks out of a total of 240 million units acquired by the Ministry of Health. “At the beginning of the crisis, we took on

a huge logistical challenge in order to assist the Barzillian Ministry of Health, districts and states in providing all of Brazil’s regions with PPE. It is a silent victory for the Federal Government that is collaborating so that the necessary conditions to face the pandemic are met”, stated the Infrastructure Minister, Tarcísio Gomes de Freitas. For LATAM Cargo Brazil’s director, Diogo Elias, this is an important mission for the country and the company is increasingly well qualified to carry out the transportation. “Our teams are becoming specialists in boarding these types of cargo, a completely unprecedented situation in Brazil up until the beginning of the pandemic. The cargo transported as part of this mission is so important that it motivates us to do our best and break our own operational records,” he stated.

JAN DE RIJK BACKS TRUCKING CDM PLATFORM

ir cargo operators are under increasing pressure to reduce costs but achieve faster transit times at European airports, from wheels down to final delivery to customers. This part of the chain is very much in the hands of the road feeder operators which serve this market. The Trucking CDM platform provides transparency, predictability and a slot allocation planning mechanism between truckers and handlers. Netherlands-based JAN DE RIJK, is one of the main players with a total fleet of over 1,000 vehicles in use every day. The company serves all main hubs as well as some minor ones. Stefan Pieters, manager operations and development, is enthusiastic about the potential of the platform. He says: “Our biggest challenge boils down to the waiting hours spent at cargo handling facilities, caused by lack of communication and transparency. As there is often no contractual relation between the trucker and the handler both parties operate on behalf of the airline but not directly connected to each other. This is very frustrating and ties up vehicles costing extra and at the same time causing more emissions. If we could share data about when the freight is available and the status of vehicle

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combined shipment information we could communicate much better with the handler, thus creating insight and data sharing for all parties involved. “The Trucking CDM platform allows data sharing between the involved stakeholders in regard to the truck movement and we are currently sharing all data of our traffic from and towards AMS within Europe. The idea of a CDM platform was born almost five years ago and I remember well how Raoul and I shared thoughts on what would be the best way forward to successfully introduce a CDM concept into the market. It goes without saying that we have supported the initiative of Trucking CDM right from the start. Given the recent developments in regard to data exchange between handling companies and road feeders combined with system integration possibilities, I look forward to start actively using the CDM platform now that we are able to share our data with Trucking CDM fully automated. “Sharing data will allow all parties to access and use real-time information. In order to get rid of congestion at air-

ports, sharing data is the only way forward. We have to work together as one community to support connectivity between stakeholders in the air cargo industry. The concept of data sharing platforms such as Trucking CDM should be embraced universally. The embracement of data sharing platforms will help us to fully integrate our systems, as opposed to the several single systems that we have today. The trucking CDM platform could be the base for this. During the recent outbreak of COVID-19, we had to work with a rapidly changing situation and a very flexible supply chain. Data sharing becomes more and more important and we should all be ready for pooling data within the air cargo supply chain, which gives us all the ability to incorporate this flexibility. Minimising the use of paper and physical contact by sharing data could also bring benefits to the supply chain system and change the world. We have to do this together as a community. Data sharing is nice but co-operation is key.” TRUCKING CDM is developed by CargoHub BV based at Schiphol airport, the Netherlands.

United back with Munich to Washington

EFFECTIVE immediately, US airline United Airlines is resuming its flight connection to Washington. A Boeing 787-9 will take off for the American capital at 12:20 every Friday, Sunday and Monday. Additional flights to Newark are to be added in August.

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Bolloré Logistics opens new office in Madagascar

BOLLORÉ Logistics Madagascar has opened a new office in the Ivato International Airport, Antananarivo, the capital of Madagascar. With a soft opening in February 2020, the new office is now home to 49 employees. The facility includes 300 sq m of offices and 108 sq m of customs warehouses and will provide logistics solutions for services to remote regions of Madagascar. “The opening of this new, modern and secured office is testament to a skilled team who have succeeded in three years to gain 60% market share of the difficult and demanding vanilla market,” said Sebastien Barth, managing director of Bolloré Logistics Madagascar.

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IAG Cargo launches FORWARD.PLATINUM loyalty programme IAG Cargo has launched its FORWARD. PLATINUM loyalty programme – a new scheme to reward customers with a revenue spend of €1.3m+ per annum. The scheme joins IAG Cargo’s FORWARD.REWARDS scheme for SMEs, providing a natural progression for IAG Cargo customers as they grow, says IAG Cargo. FORWARD.PLATINUM membership is by invitation only and has been designed to provide bespoke incentives to IAG Cargo’s larger customers. Under the scheme, customers can redeem loyalty points for flights with British Airways and Iberia or against a choice of 250,000 hotels worldwide. Matthew Gardiner, head of marketing and external communications at IAG Cargo, commented: “FORWARD.PLATINUM will enable IAG Cargo to keep rewarding its customers as they grow, providing a seamless transition from the gold tier of the award-winning FORWARD.REWARDS programme. “FORWARD.PLATINUM is designed with a greater level of customer personalisation in mind. Our largest customers will now benefit from bespoke loyalty promotions tailored to their businesses.”

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Delta Cargo partners with PayCargo for new payment platform

elta Cargo has partnered with online payment platform PayCargo and Unisys to offer customers an additional option to pay for their shipments’ destination charges. The new service is for cargo shipments that originated internationally and delivered throughout the US. PayCargo is the world’s leading online payment platform for the air cargo and shipping industry. Its secure and easy-to-use system has cost benefits directly for Delta Cargo’s customers as it automates data flows, eliminates the need to send paper checks and enables same-day release of cargo. To use the system, customers must first register via the PayCargo website. Customers will then receive updated charges information and efficiently process payments due at the destination. Once payment is made, Delta Cargo is notified in real-time to process the shipment and expedite shipment release. “Delta Cargo is focused on making it easy to do business with us and our new collaboration with PayCargo and Unisys does just that,” said Shawn Cole, vice president – Delta Cargo. “As we strive to become the airline of choice for our customers, we know that offering secure payment options is one way we can achieve this.” Lionel van der Walt, president and chief executive officer of the Americas, PayCargo said: “PayCargo is honoured to partner with a prestigious carrier such as Delta Air Lines. “This collaboration, made possible through our integration with Unisys, will facilitate significant cost and operational efficiencies by enabling staff to expedite the release of cargo without the need for accessing multiple systems and automates data flows to save time and avoid costly human errors.”

AIRCRAFT CONVERSIONS

Hi Fly converts A380 to meet cargo demands during COVID-19 crisis

LISON-BASED Hi Fly worked to create extra and vital cargo capacity by temporarily removing economy seats of some of its aircraft. This included the iconic A380 “Save the Coral Reefs” aircraft in its fleet, to meet the high cargo demands during the COVID-19 crisis.

The A380, with its large extra wide cabin and three decks, can offer the largest volume for cargo transportation amongst all the passenger aircraft used for cargo, approximately 320 cu m between the three decks. Also it has the highest payload, 60 tonnes, and

can fly direct for over 17 hours. This combination of volume, payload and range makes the A380 a unique product in the market place for the transport of cargo, when availability of freighters is not enough to cover the market needs, says Hi Fly.

CargoAir orders 11th AEI classic freighter conversion

FLORIDA-BASED Aeronautical Engineers, Inc. (AEI) has signed a contract to provide Bulgaria-based CargoAir with a B737-400SF freighter conversion. The aircraft (MSN 28882) is scheduled to commence modification in midSeptember 2020. All modification touch labour will be performed by Commercial Jet at their Dothan, Alabama facility. “CargoAir is a long-time and highly valued customer of AEI,” said Robert Convey, AEI senior vice president of sales and marketing. “The airline currently operates 3 AEI B737-300SF and 7 AEI B737-400SF freighters.” Angel Petrov, CargoAir ground operations and commercial director and purchase and fleet acquisitions director said: “AEI and CargoAir have had a successful partnership dating back to 2009. We appreciate the strong collaboration between our companies, and firmly believe in the capabilities of AEI and their authorised AEI Conversion Center, Commercial Jet.” AEI’s B737-400SF shall provide CargoAir with a highly flexible Ancra CLS capable of carrying multiple ULDs including: 10 88” x 125” ULDs in P1 to P10 or 10 88”x108” in P1 to P10 and 1 53” x 88” x 64” Pallet or AEP/AEH or 60.4” x 61.5” AKE/LD3 or 61.5” x 88”x 56”H AYY in P11. This unique flexibility has been designed by AEI to allow cargo operators to immediately adapt to multiple ULD configurations at a moment’s notice. When combined with proven reliability, the AEI Converted B737-400SF will allow CargoAir to keep their aircraft “in the air, generating revenue,” said AEI.

IAI secures DHL contract for additional Pax to cargo conversions ISRAEL Aerospace Industries (IAI) will convert an additional three B767-300 passenger aircraft to cargo aircraft, with the potential for a fourth aircraft. This contract is another milestone for IAI’s aircraft cargo conversions programme and the broadening of business for IAI’s Aviation Group. IAI’s Aviation Group was estab-

lished in January 2019 by combining the company’s commercial and military aircraft activities. IAI’s Aviation Group is a world leader in the design, development, and certification of passenger to cargo aircraft conversions. The company’s customers include the world’s largest courier and parcel delivery companies.

Over the last decade, converted B767 aircraft have been the backbone of the cargo aircraft market on many domestic and international routes. To maintain the company’s continued and future dominance in this market and offer new solutions, IAI’s Aviation Group signed a contract with GECAS to design, develop and cer-

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tify the B777-300 passenger to cargo conversion. IAI executive vice president and general manager of Aviation Group, Yossi Melamed, said: “IAI is a world leader for passenger to cargo conversions. We provide high-quality solutions tailored to the customer’s needs on narrow and wide-body aircraft.

“The constant increase in the e-commerce market and the effects of the COVID-19 pandemic have emphasised the importance of cargo aircraft. “ We thank DHL International GmbH for their acknowledgment of IAI’s performance and again trusting us to convert additional aircraft for their cargo aircraft fleet.”

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AUSTRALASIA

KERRY LOGISTICS NEW ASIA J-V A

Logistics’ expansion to Sri Lanka will enable it to tap into the opportunities therein by offering a suite of services consisting of air and ocean freight, Customs brokerage, inland trucking, multi-country consolidation, project cargo, warehousing and value-added services such as pick/pack, purchase order management, quality control, packaging and entrepôt services. Patrick Cheah, executive director global air at Kerry Logistics, said: “Located in Sri Lanka, the intersection of freight routes in South Asia, Kerry Logistics Lanka will become a significant hub for Kerry Logistics and give a strong boost to our global connectivity. “Plans are also in place to aggressively focus on the upstream of the supply chain to support the fashion industry vertical. “The forming of the joint venture also marks the deepening of our presence in the South Asian subcontinent, rounding out our full suite of services in the region.”

KERRY Logistics has announced a new joint venture, Kerry Logistics Lanka, formed with IAS Holdings in Sri Lanka to strengthen its international freight forwarding capabilities in South Asia. Headquartered in Colombo, Sri Lanka, Kerry Logistics Lanka sits at the strategic crossroads of Australasia, East Asia, South and South East Asia, Africa and Europe. As part of Kerry Logistics’ South Asia operation, Kerry Logistics Lanka operates an office in Colombo, as well as a bonded facility and office for export purposes at the Bandaranaike International Airport. In 2019, 46% of the total export of Sri Lanka derived from the textiles and garments industry, amounting to $5.6 billion, according to the Central Bank of Sri Lanka’s external sector performance review. There are more than 300 apparel manufacturers in Sri Lanka, which are well connected to the super brands in Europe and the US. Kerry

Tigers Australia opens new omni-channel facility in Sydney

FORWARDER Tigers has opened a new omni-channel facility in Yennora, Sydney, Australia to meet rising demand in domestic and cross-border e-commerce for B2B, B2C fulfilment and retail scan pack. The omni-channel warehouse is fitted with Tigers’ Automated Transport Sortation System and SmartHub:Connect (SH:C) technologies that enable customers to manage orders and view their inventory remotely. “The way we all shop is changing and will continue to change,” said Frank Cafasso, managing director (MD) Tigers Australia. “The Yennora facility, with its state-of-the-art systems, will keep Tigers agile in adapting to the evolving e-commerce market. “The new warehouse’s upgraded capabilities will allow us to facilitate a variety of storage mediums, and with its centralised processing area the facility will offer increased scalability as the market grows.”

The new facility expands Tigers’ processing capacity at its Sydney operations to 17,000 pallet locations. “E-commerce in Australia will increase not only for domestic but also international (cross-border) trade, and our new Sydney facility is expected to handle an initial 20% of our B2C e-commerce traffic, with predicted yearly increases,” added Cafasso. The facility will process a range of consumer goods including cosmetics, apparel, giftware and homeware among others. The new facility is part of Tigers’ two-year strategy to invest in e-commerce and B2B verticals, and similar facilities are planned for construction in Sydney and Melbourne. SH:C is the world’s first combined freight, e-commerce and logistics portal, which gives customers end-to-end visibility of the supply chain globally, from transport to e-commerce fulfilment, delivering cost-effective and customisable solutions. The Sydney hub is part of an ongoing global expansion plan for Hong Kong-headquartered Tigers, and the facility was developed by Fife Capital.

ACW 20 JULY 2020

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NEWS EVENTFINDER

Welcome to the new era of intuitive supply chains

10-12 November 2020 Miami

he coronavirus has caught supply dict and prevent rather than its predecessor which chains napping around the world – focussed on track and trace. from a too heavy reliance on certain In the warehouse the introduction of AI will work territories for the source of goods, to out how to perform tasks and get around the facility too little visibility across multi-tiered in the least time. It will plan paths for the movement supply networks and insuffiof goods to maximise throughput. SKU lots will cient data intelligence. also be optimally positioned. At the same time the emerGoods that need to be gency response to COVID-19 picked up at the same time has further strengthened will automatically be identithe case for AI. We’ve heard how researchers from Fudan fied. The combined data that University in Shanghai has can be assimilated across the used COVID-19 as a case supply chain at great speed study to test and prove the will ensure that overstocking capability of AI in making and understocking will be real time predictions. avoided. Leaders representing AI is at the heart of our major brands in computNavisphere system working with machine learning algoing, social media and smart rithms to harness the power phones met officials at A major outcome of COVID-19 is the of more than two petabytes Downing Street to discuss their role in the Coronavirus of data in informing strategic need for companies to know so much in terms of modelling and decision making, supportmore about their supply chains and to tracking data. ing global visibility across be ready for the unexpected. By revealing risks and multi-modal transportation The outcome – a new era of intuitive weaknesses in existing supnetworks to deal with any supply chains driven by data and digitieventuality and providing ply chains and proving the sation – according to Chris Mills, regional the ability to plug inefficienvalue of AI through managing the emergency needs cy gaps to enhance freight managing director, transportation for of the pandemic, the coroflows and reduce costs. Western Europe at global logistics platnavirus will likely act as Fulfilment, procurement form provider, C.H Robinson. the trigger to a major step and production operations can access the information change in the way companies go about logistics – one that we predict will lead live on Navisphere and adapt their own processes at an early stage. For example, production departments to a new era of intuitive supply chains. benefit from receiving precise information on when the ordered supplies arrive at the company. Internal So, what does an logistics and production processes can in turn be intuitive supply chain look like? co-ordinated and optimised accordingly. Recent introductions include a benchmark tool It is ultra-intelligent from its innate ability to draw upon and analyse major quantities of data across that enables customers to alter lead times and volbusiness functions, suppliers and competitors thanks umes and thereby reduce costs and improve dwell to AI. It intuitively reads all types of situations, from times/on time performance. Currently development predicting the unpredictable to instantly responding is focused on providing insights which can improve to fluctuations in demand through understanding the carbon footprints of supply chains. changing consumer behaviours and buying patThrough the AI-driven intuition of Navisphere terns. The intuitive supply chain can even respond to we have reduced a 56-day order cycle to 20 days or less. A customer has been able to reduce air freight weather and political conditions before they occur. Its super intelligent powers will also support end- shipping costs by 85%, while two customers from to-end supply chain visibility, the lack of which has the manufacturing industry have saved on shipcaused many challenges during the coronavirus out- ping costs 50% and 20%, respectively. At the same break. It will do this by delivering insights at scale time, one of our biggest clients, a leader in the FMCG providing a deep understanding of multi-tiered sup- world, has reduced their transportation budget and plier networks, the goods that pass through them and cut the total weight and volume shipped by 65% due stock levels held at key points at warehouses, point of to added visibility, efficiency, and up-front planning. It was revealing when in late February and early production or at the retail end. This enhanced visibility will mean that supply chain leaders can intuitively March during the coronavirus the Institute of Supply make contingency plans in response to unforeseen Management carried out one of its monthly economevents whether they be internal (a fault on a produc- ic surveys which found that nearly three quarters of tion line) or external (delayed shipments). companies it contacted reported some kind of supThe intuitive supply chain also takes advantage ply chain disruption, with 44% admitting they didn’t of combining artificial intelligence with the internet have a plan to deal with it. of things to extend the possibilities of best pracPrior to the coronavirus, Gartner predicted at least tice logistics management, such as monitoring the 50% of global companies would use AI-related transphysical impact of goods in transit covering such as- formational technologies in supply chains operations pects as shock, tilt, humidity, light, temperature and by 2023. That could be significantly more now in the pressure which will alert them to potential spoilage, wake of coronavirus as companies look to impledamages and goods tampering. This takes custom- ment it at pace and others are encouraged to start er experience to a whole new level and drastically seriously investing in it. It is no longer a luxury but reduces costs associated with damaged and spoilt a necessity - and with it becoming part of the new normal logistics, an era of intuitive supply chains will goods.” The supply chain of the future will be all about pre- be born.

aircargoweek.com 07_20 July 2020.indd 1

11-13 November 2020 Istanbul

ACW 20 June 2020

7 15/07/2020 11:34

Cargo and Other Stories by Lemon Queen

Cargo in the blood

Audrey Serdjebi, founder & CEO, Lemon Queen

I’m Every Woman

he air cargo industry is in the limelight – again! The world’s eyes remain turned towards our work. An aeroplane in the sky is a sign of hope. In my own country, we scan the skies in the hope of seeing more. Borders seem no longer to exist and in the middle of a crisis that continues to drag on, air cargo is a sign of unity for the entire world. And we know just how essential unity is in the midst of this crisis. And at a time when people are isolating themselves away from others, where half the planet is on lockdown, there is an industry that is standing in solidarity with them, opening up to others and tearing down the idea of borders – our industry. For the last 10 years, our industry has been part of my everyday life. Just like you, it’s in my blood, and just like you, I don’t think anything could take me away from it. I love our industry and I love its energy.

’m happy that the air cargo industry is taking centre stage. The whole world has to know that we are resourceful, that innovation is our driving force, that sustainability isn’t an empty word, and that women play a crucial role. And since we’re talking about solidarity, and about eliminating borders and opening up, it’s this last point that I want to focus on. Before moving to cargo, I had a job at an NGO that worked to protect women’s rights. When I tell people that I went from promoting gender equality to air cargo, it tends to get quite the reaction: “I hope you’re not disappointed!”, “There’s definitely work to be done there,” “It must have been quite a shock”, “It’s a man’s world” – I could go on. Equality is coming and I know that our industry isn’t trying to resist that change. In fact, the opposite is true. A few months ago, IATA launched its ‘25by2025’ campaign – an initiative to promote gender diversity in the air industry by 2025. Its ideas include encouraging airlines to increase the number of women in management roles and to promote women in sectors where they are under-represented, in particular in operations. China Eastern, Lufthansa Group and Qatar Airways have already signed the commitment and will publish an annual report on their progress. And the campaign is also making ripples in our world – after all, the cargo sector is

no stranger to equality. It’s an industry where there’s a role for any woman who wants one. Thinking of freight as a purely male domain is quite simply archaic. Women are everywhere – in every role, and in every sector. Yes, there is still a discrepancy between the success experienced by men and women, but what really excites me is seeing that, at large and small airlines alike, at freight forwarders, at handling companies, at GSSAs, and more besides, women are everywhere. They invent, innovate, participate. They aren’t marginalized. Of course, there are still organizations that are the exclusive preserve of men, which they attempt to justify by trotting out the old argument of ‘skills’. But they’re already out of date, and the reality in the field shows us that women are as good as men and vice versa. I’ve been lucky enough to grow up in this industry thanks to a GSSA that didn’t treat me any differently from my male colleagues and that didn’t hesitate to appoint me to the management team, alongside other female managers. I have a huge number of female friends in the industry who hold a range of roles, each more exciting than the last. I’m not going to list them – firstly because since it would never occur to anyone to count the amazing men in our industry, the same should be true of the women who work in the sector, but above all because none of them would like to see their careers described as an incredible and almost surprising success. These women are where they deserve to be, and that’s all there is to say.

oday’s market-leading airlines all have women on their management teams, and the next generation has taken notice. During the last NexGenLeaders challenge, half of participants were young women. They wanted to join an industry that would let them make use of their talent. They weren’t worried about gender distinctions, but they were concerned about an industry starved of innovation and original solutions. It’s a safe bet that there will be just as many such women in the next edition. Changing mindsets is a challenge. But I sincerely believe that our industry is attracted to talent of all kinds, regardless of gender.

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

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