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

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08/04/2019 12:48


The weekly newspaper for air cargo professionals No. 1,028

22 April 2019

A LITTLE FISHY WHEN THE BOAT COMES IN

Sold Out! Largest-ever airfreight presence at transport logistic 2019

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t’s a sell-out success! That is the message from organisers of the ninth air cargo Europe trade fair to be held in June as they confirm all trade stands have been sold. air cargo Europe, the international industry gathering for the global air freight industry is taking place in Munich as part of transport logistic, the world’s leading trade fair for logistics, mobility, IT, and supply chain management. More than 230 exhibitors from 42 countries are expected to gather, up from 213 exhibitors from 42 countries that gathered in 2017. While the exhibition has expanded into a second hall, this has not been sufficient to keep up with demand for space, reveals Gerhard Gerritzen, deputy managing director of organisers Messe Muenchen. “Trade shows always reflect the respective industry. The strong development of air cargo Europe shows the expectation of further growth in

GERRITZEN: THE WORLD’S BIGGEST PLATFORM FOR AIR CARGO the global airfreight area, the need for global networking and a strong market development. It confirms also the significance of the world’s biggest platform for air cargo,” Gerritzen says. “We are looking forward to the world’s largest airfreight fair. I recommend our conference program too, “Artificial Intelligence” and “Robotics and Automation” will be the main topics here.”

Pilots protest about working conditions

PILOTS flying for Amazon Air and DHL took to the pavement on Thursday 11 April outside Cincinnati/Northern Kentucky International Airport to protest about working problems.

In 2017, the air cargo Europe hall B1 was fully booked. To fulfil stand enlargements and to place new airfreight exhibitors, Messe Muenchen decided to open a new hall. “Here air cargo exhibitors come together with companies from the maritime sector as well as logistics service providers,” says Gerritzen. This year, a number of companies will be exhibiting for the first time.

The pilots who work for Atlas Air, Southern Air and ABX Air were raising their concerns about working conditions and stalled contract negotiations. The pilots have been in contract negotiations for years, and say they are tired of low pay, recruitment problems and retaining pilots and sinking morale. They are represented by the Airline Professionals Association, Teamsters Local 1224 union.

These include Neutral Air Partner, Finnair Cargo, All Nippon Airways, Dammam Airport, Tristar Cargo, Zhukovsky Airport. More than three-quarters of exhibitors have attended a considerable number of the fairs, including Munich Airport, Emirates, Lufthansa Cargo, SkyTeam, Fraport, Boeing, Cargolux and a number who have been present since the first air cargo Europe in 2003. Gerritzen adds: “We don´t have a waiting list but we are not able to fulfil all stand wishes. “Due to this fact some of our clients are still waiting for their ‘dream’ placements. “We don´t do a forecast for the next air cargo Europe, which will happen in 2021. We are very happy with the current development and we see also a strong interest in all our international air cargo trade shows. “It is our goal to develop and expand this global network further.”

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INSIDE WFS SUPPORTS ABC IN LIEGE

AIRBRIDGECARGO Airlines has chosen WFS as its handling partner at Liege Airport ahead of the opening of the first phase of its cargo area at the ... PAGE 2

GLENN IS ON TOP OF THE WORLD

GLENN Phillips, the popular PR and advertising manager of ACS, recently conquered the 5,895m Mount Kilimanjaro in the company of Jo, his wife ... PAGE 3 STRONG REVENUE FOR VIRGIN

VIRGIN Atlantic Cargo has achieved its strongest revenue performance in the last five years, with 13% growth to £222 million ... PAGE 5

PLENTY OF FISH TO BE EXPORTED

FOLLOWING on from the recent substantial growth at Oslo Airport, things were slower in 2018 as capacity has been allowed to settle and a hotter summer ... PAGE 8

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Old News

London mayor dreams of offshore airport

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oris Johnson, the flamboyant mayor of London, is looking into the possibility of building a giant 24hour airport on an artificial island in the Thames estuary, off the northern coast of Kent in southeast England Johnson has said he wants to eventually close London Heathrow airport, the UK’s leading airfreight gateway, and turn it into a business park. “Heathrow has a limited capacity, and sooner or later, there is going to be another airport in this country,” said a leading businessman located in the area of the proposed new airport. But the idea is fiercely opposed by local council leaders and environmentalists, some of whom say a new gateway would also interfere with growth plans at nearby Kent International airport. Matt Clarke, CEO of Kent International, told media that he did not think much of the idea, saying it was one that had been around for several years. British Airways CEO Willie Walsh dismissed the idea as “madness”. UK transport secretary Ruth Kelly described the idea as “fantasy”.

Quote of the week

“The press like the disruptor handle, because it makes good headlines. In reality the disruption has largely been the result of over-active PR agencies, taunting an aggrieved forwarding audience, that have been labelled as ‘dinosaurs’.”

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WFS to support ABC’s plans for Liege

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irBridgeCargo Airlines (ABC) has chosen Worldwide Flight Services (WFS) as its handling partner at Liege Airport ahead of the opening of the first phase of its cargo area at the end of 2019. The co-operation is in support of the strategic partnership signed between ABC’s parent company, Volga-Dnepr Group and Liege, boosting the airline’s volumes to and from the airport. The latest addition of WFS to the project comes as the partners progress with the construction phase of new warehouse premises. The work will be divided into two phases for completion by the end of this year and mid-2020 respectively. Andrey Andreev, vice president of Europe at ABC says the first 12,500 sq m warehouse will support the airline’s intention to increase the schedule from eight weekly frequencies from Liege to 30 a week by 2020. He says: “This is a global project for AirBridgeCargo because, as well as representing a substantial enhancement of our cargo infrastructure in the region, it will allow us to increase our use of Liege Airport to leverage major international trade flows, including for special cargoes, and extend our ability to meet the needs of global businesses and consumers.”

Luc Partoune, CEO of Liege Airport says: “All of the parties involved in this partnership are really committing to the future of Liege, not only on paper, but by investing millions of euros in a new state-of-the-art facility.” Barry Nassberg, group chief commercial officer of WFS says: “We’ll be bringing the unique WFS experience to the airport, along with our technology, systems, and security processes, and are confident in our ability to help accelerate ABC’s and Liege Airport’s growth ambitions.”

VOLGA-DNEPR Group’s express carrier Atran Airlines has linked Xi’an, China with Moscow, Russia, connecting Chinese retailers with Russian consumers. The first flight was operated by a Boeing 737-400SF with further plans to deploy a Boeing 737-800BCF with up to 23 tonnes of cargo capacity per flight on the route. The flight was operated with the support and close cooperation of Russian Post. Xi’an Xianyang International Airport is the second largest airport in Northern China, offering less congestion and welcoming new cargo carriers to accommodate the emerging growth of cross-border e-commerce between China and Russia. Dmitry Obsharov, general director of Atran Airlines says: “With global e-commerce growing at 20% per year and forecast for a nearly 15% uptick in Russia over the next three-four years, the demand for high-quality air cargo services will be high. We are ready to guarantee this in close partnership with Russian Post and China Post.”

He adds: “Being part of ‘Belt and Road’ initiative, this ancient capital of China will undergo developments which will facilitate its transformation into a multi-modal hub with emerging volumes going through the airport.”

Volga-Dnepr connects Chinese retailers with Russian consumers

WebCargo buys Air Freight Bazaar

Industry veteran Steve Walker on why he is not concerned about what disruptors may bring to freight forwarding

WEBCARGO, a Freightos company has acquired Air Freight Bazaar, a regional air cargo rates and sales platform based in Chennai, India. The acquisition combines WebCargo’s advanced air cargo rates, sales and eBooking platform, used by over 1,400 forwarders with Air Freight Bazaar’s market share of 300 regional air forwarders.

Air Freight Bazaar customers will receive access to WebCargo’s platform, including access to on-demand air rates, dynamic pricing and eBooking with airlines like Lufthansa Cargo. The acquisition sets the stage for future regional expansion of Freightos’ suite of digital freight sales and management platforms. Jose George, co-founder of Air Freight Bazaar says: “Our vision has always been to help India’s logistics providers improve with advanced technology.” Vinay Sethia, co-founder of Air Freight Bazaar adds: “With Webcargo by Freightos, we can offer our customers improved technology, direct access to over 300 airlines, and eBooking. We’re also excited to represent WebCargo and Freightos in India.” Zvi Schreiber, CEO of Freightos says: “Air Freight Bazaar has been a regional leader in freight digitalisation, making them a natural fit. Our initial focus in India will be on further automation for local air freight forwarders and collaborating on dynamic pricing and eBooking with regional airlines.”

Al Shueili joins TIACA board THE CEO of Oman Aviation Services (OAS), Dr Khalfan Al Shueili has been elected to the board of The International Air Cargo Association (TIACA). Air cargo in the Sultanate of Oman witnessed significant growth between 2013 and 2018 with volumes almost doubling. Muscat Airport-based Al Shueili previously spent more than seven years leading readiness operations for the Oman Airports Management Company

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during a period of expansion. Sebastiaan Scholte, chairman of TIACA and CEO of Jan de Rijk Logistics says: “TIACA brings together all sectors of the cargo supply chain and the addition of OAS means we now have more airport and ground handling expertise as part of our Board from this important growing region.” OAS signed a memorandum of understanding with TIACA in January, working

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together to promote air cargo growth in the Middle East. Al Shueili says: “This step will allow us to explore new horizons of regional and global partnership, as TIACA is considered to be a very comprehensive umbrella of international cargo companies.”


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PR with the ‘top of the world’ feeling

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lenn Phillips, the popular PR and advertising manager of London-based Air Charter Service (ACS), recently conquered the 5,895m Mount Kilimanjaro in the company of Jo, his wife. In fact the climb had been inspired by Jo and was the successful conclusion of her ambition to climb Africa’s highest peak. He says: “It has been Jo’s ambition to climb Mount Kilimanjaro ever since she was Emirates cabin crew and flew over the peak 20 years ago.” The couple accomplished the climb at around 6:30am after leaving base camp at midnight. It was also their fifth wedding anniversary. The final assault from base camp at 4,600m above sea level to the summit took some 6.5 hours for a distance of around 5 km. While the couple rest after their efforts, thoughts are turning to what they might and might not do next. Phillips reveals that he will not be tackling Everest but the couple could consider trekking into Machu Picchu. The couple had climbed the peak for their own challenge but friends and colleagues insisted on donating some £2,500 on their Made it, Ma! Top of the world!! Jo and Glenn take celebrations to behalf to Cancer Research UK retrospectively. a new height.

ACWBITES FORMER US airline owner Donald Trump has tweeted rebranding advice to Boeing on the troubled B737 Max. “If I were Boeing, I would fix the Boeing 737 Max, add some additional great features...rebrand the plane with a new name. No product has suffered like this one. But again, what the hell do I know?” CARGO throughput at Hong Kong International Airport grew by 0.2% in March to 432,000 tonnes. Exports increased by 11% but imports and transhipments both declined. Amongst key trading regions, cargo exported to North America and Europe posted the largest increases. UNITED Airlines has applied to the US Department of Transportation for authority to begin a service between New York Newark Liberty and Cape Town. It plans to operate three flights a week starting in December 2019 using a Boeing 787-9 Dreamliner.

GDP comes to New York

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orldwide Flight Services (WFS) and Swiss WorldCargo have opened New York’s first GDP compliant pharma facility having achieved certification of Building 66 at JFK airport. The GDP certification at John F. Kennedy International Airport confirms WFS’s compliance with World Health Organization, IATA and Parenteral Drug Association quality standards for handling pharmaceutical and life science products, as well as with Service Level Agreements signed with individual airline customers. Michael Simpson, executive vice president of the Americas at WFS says: “As the leading cargo handler at JFK, we are proud to be the first airline handling facility to become GDP certified, which is in response to growing customer demand for high quality, standardised pharma handling.” Michael Ganz, head of Northeast/Midwest USA and Canada for Swiss WorldCargo is “very excited” that New York’s first GDP compliant airline facility is located in Swiss WorldCargo’s warehouse. He says: “This latest addition of GDP-compliant facilities allows us to offer additional quality corridors to our pharma and healthcare customers. The certification of our boutique-like single-airline facility in New York further strengthens our position as a global quality leader.”

Digital tags for ULDs

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nilode Aviation Solutions and ULD manufacturer Nordisk Aviation Products have developed an integrated pallet edge rail solution for digital tags. Unilode has started equipping its ULD fleet with digital tags based on Bluetooth Low Energy 5 technology. The product for Nordisk’s pallets provides a reliable and durable product that is almost invisible mounting for digital pallet tags. Existing Nordisk pallets will be retrofitted with digital tags. Richard Betts, president of Nordisk says: “Nordisk is pleased to contribute to Unilode’s award-winning digital transformation programme, which is the next step of evolution in the aviation industry.” Benoit Dumont, CEO of Unilode says: “The digital solution for Nordisk pallets is the result of a successful cooperation and an important step towards our goal to digitalise Unilode’s entire ULD fleet for the benefit of all our current and future customers.”

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Panattoni invests €40 million in Airport Park Leipzig Halle million people living within 1.5 hours, Leipzig Airport is fast being recognised as a major e-commerce cargo airport and one which the logistics industry and freight forwarding community are being drawn ever closer towards.” The Panattoni announcement follows on from three other major deals secured at the park including Autohof 24 Group, who will build an autostop and trucking park on 45,000 sq m of land. Max Weishaupt Industries have taken 15,000 sq m of land for development and the leasing arm of Austria’s Raiffeisenlandesbank Oberösterreich have taken up a 28,000 sq m building. Two buildings measuring 28,000 sq m and 39,000 sq m are available for lease or purchase, which Airport Development says are ideally suited for air cargo, logistics and e-commerce purposes. A 45,000 sq m plot is also available for development and is ready to be developed at Airport Park Leipzig Halle. Freight volumes at Leipzig/Halle Airport continue to grow, with a 1.1% increase in the first quarter of 2019 to 301,844 tonnes, and 2.8% growth in March to 110,419 tonnes.

REAL estate developer Panattoni Corporation have made a €40 million investment in Airport Park Leipzig Halle, the logistics park located 800 metres from Leipzig/Halle Airport. The investment to create the Panattoni Logistics Center will include acquiring 114,500 sq m of land. Work will begin in late summer 2019 to create 51,000 sq m of hall space, 2,000 sq m of office space and 3,400 sq m of mezzanine space, with the logistics centre expected to open in early 2021. Dieter Vornhagen, chairman of the board of Airport Development, which owns and operates Airport Park Leipzig Halle says the business development team are “delighted” with the Panattoni deal. He says: “This investment is a clear sign of the confidence this world-leading logistics real estate developer has for the Leipzig area and in particular for the prospects moving forward of Leipzig Airport.” Vornhagen adds: “As a global hub for DHL and surrounded by numerous tier one automotive and other manufacturing clusters, plus a booming consumer population of more than 17

Aeroterm to expand in Miami and breaks ground in Cincinnati AEROTERM has signed an agreement with Miami-Dade County to expand its air cargo facility at Miami International Airport (pictured), which it leases to FedEx Express. The existing facility was completed in 2004 with a 25-year lease with the county on 23.4 acres. Through the new agreement, Aeroterm will extend the ground lease to 2050 and expand its leased premises by approximately six acres of additional land on which it will construct the building expansion. Alexi Lachambre, vice president of development for Aeroterm says: “As a world leader in air cargo, FedEx is a key customer in our portfolio expansion. We look forward to delivering this facility in record time to accommodate the growing business needs of FedEx.” In addition to Miami, Aeroterm is working on air cargo developments at John F. Kennedy International Airport, Cincinnati/ Northern Kentucky International Airport and the latest phase of an air cargo development at Chicago’s O’Hare International Airport. Aeroterm has broken ground on a Class A multi-tenant facility at Cincinnati/Northern Kentucky International Airport, FedEx will be the main tenant. The 4,680 sq m facility is LEED certified, with the energy efficient building featuring insulated pre-cast concrete panels and

will be used for airside cargo operations. The facility, which will be completed in November, can accommodate cargo, GSE users, and other terminal support users such as flight kitchens or commissaries. Alexi Lachambre, vice president of development at Aeroterm says: “The airport’s ideal central location and strong infrastructure make this development project an excellent addition to our

Aeroterm portfolio. We look forward to our continued partnership with CVG and FedEx to support their growing infrastructure demands.” In 2018, CVG handled more than 1.2 million tonnes of air cargo, an increase of 19.6% over 2017. Amazon’s Prime Air cargo hub will be completed in 2025 and DHL also operates a global hub out of the airport.

AVS GSA picks up exclusive GSSA contract with Oman Air in Malaysia ECS Group subsidiary AVS GSA has been appointed the exclusive general sales and service agent (GSSA) for Oman Air in Malaysia. The partnership will assist Oman Air to further strengthen its position with two daily flights departing from Kuala Lumpur operated by Airbus A330s and Boeing 787s. The main routes to be marketed under the agreement are the Middle East for oil, gas and perishables, and Europe for electronics with an expected 7,000 tonnes of goods to be carried

annually. Mohammed Al Musafir, senior vice president of commercial cargo at Oman Air says the airline is delighted to appoint AVS GSA as its GSSA partner in Malaysia. He says: “The expansion in the volume of business from Malaysia since beginning of Jan 2019, when AVS GSA was appointed as the general sales agent for Oman Air Commercial Cargo, prompted us to award the sales and services agency to them.

Weather delays beluga flight CARGOLUX Airlines International has had to delay its flight to relocate two beluga whales due to weather conditions and rough seas in Iceland. Little Grey and Little White were set to fly from Shanghai to Keflavik before travelling by truck and ferry to Heimaey Island. The temporary delay is due to the complicated final leg of the journey between the Icelandic mainland and the island of Heimaey. The weather conditions in Iceland and the

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forecast of rough seas next week do not allow for the transport of the whales on board the ferry. Cargolux and the Sealife Trust, along with the Icelandic government are working closely to assess suitable options for the belugas’ safe relocation and to secure the flight out of Shanghai to Iceland in the coming weeks. The airline will carry out the flight when experts and partners deem it right to do so.

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“We are sure with their proven expertise and track record, Oman Air can look forward to a successful partnership.” Thomas Ong, CEO Far East for AVS GSA says: “We are extremely honoured by the trust that Oman Air has put in us by converting our GSA contract into a GSSA contract in the space of a few months. “It perfectly reflects the hard work that our dedicated team has put in on behalf of the airline.”


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Strongest revenue in five years for Virgin

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irgin Atlantic Cargo has achieved its strongest revenue performance in the last five years, with 13% growth to £222 million. The achievement was supported by a 6% annual growth in volume to more than 244,000 tonnes, the airline’s best result since 2010. The year saw the best-ever monthly and route performances, with growth achieved across the majority of commodities flown, with high value segments such as pharmaceuticals seeing a 50% year-on-year increase in volumes. The airline achieved new records for tonnage from the UK and the US, as well as on direct services from cities including Delhi and Los Angeles. December also saw Virgin’s highest-ever daily import and export volumes through London Heathrow. Virgin and customers continued to enjoy

more benefits from its joint venture with Delta Cargo as well as from the growth of revenue and volumes generated for Virgin Australia’s longhaul international network. In 2018, Virgin Australia extended its network with the launch of daily Sydney-Hong Kong services in July, adding much needed capacity, especially for e-commerce. The introduction of double daily Johannesburg services by Virgin Atlantic at the end of October also contributed to a 15% in volumes and a 22% boost in Heathrow-Johannesburg revenues. Dominic Kennedy, managing director of Virgin Atlantic Cargo says: “We achieved particularly strong growth from June onwards, resulting in the best Q4 performance in our 34-year history, with positive contributions from across our network and partnerships. As an airline that is passionate about customer service, it is also a tribute to our entire cargo team that, during

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such a busy year for volumes, we achieved our highest-ever score for customer experience.” This year will see new investments including the arrival of the first of four Airbus A350-1000s, a new route for cargo to Tel Aviv, moving to a state-of-the-art facility at Heathrow with partner Delta Cargo, and investments in new digital technologies.

ACWBITES AMERICAN Airlines will ground its Boeing 737 MAX fleet until 19 August based on its ongoing work with the Federal Aviation Administration and Boeing. Approximately 115 flights will be cancelled per day, representing 1.5% of American’s total flights each day of the summer. 737 MAXs have been grounded around the world following the Ethiopian Airlines ET302 crash on 10 March and the Lion Air Flight 610 crash on 29 October 2018. CARGO volumes at Heathrow Airport were down 0.8% in March to 149,417 tonnes. Africa and Latin America posted double-digit growth with the former benefitting from Virgin’s growth on the continent, and the latter from additional services and volumes to Brazil and Mexico. Latin America was up 23.9% to 5,312 tonnes and Africa by 11.4% to 8,677 tonnes.

Critical service goes 24/7 IAG Cargo has expanded its highest priority Critical product with the introduction of a dedicated 24-hour Critical Service Team. Based at IAG Cargo’s London Heathrow hub, the 24-hour team will support all service matters for the Critical product, overseeing the entire shipment journey including out-of-hours bookings, customer service advice and tracking. Shipments from last-minute orders to made-to-measure spare parts are guaranteed capacity, with no restriction on size, weight or volume subject to aircraft limits. Daniel Johnson (pictured), head of product at IAG Cargo says: “Following a 10% increase in demand in the weeks preceding the Easter holiday last year, our new 24/7 Critical offer means our Critical Service Centre will be able to support all last minute and urgent shipments, whether it’s in-demand chocolate or a key aircraft part.”

Relocating abroard? IAG Cargo are here to help IAG Cargo has launched a relocation service for customers moving abroad, making it the first airfreight carrier to offer the service directly to consumers. Partnering with Santa Fe Relocation, IAG Cargo’s relocation service offers 24/7 support in over 67 different languages. A dedicated move specialist will be assigned to each customer to help every step of the way with a wide range of services from new home and school searches to obtaining visas, storage, language training, and help with vaccinations. Customers can book via iagcargo.com to simplify the process of moving abroad, whether it is for work, retirement or adventure. Daniel Johnson, head of product at IAG Cargo says: “This expansion of our service offering reflects our commitment to our customers and making what can be a stressful time in someone’s life as easy and uncomplicated as possible.” Gregoire Pinton, chief commercial officer of Santa Fe Relocation says: “This exciting collaboration is confirmation that our new technology and global coverage can deliver a business advantage to a wide range of clients.”

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Rhenus strengthens presence in the Americas

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henus has strengthened its presence in the Americas with the acquisition of Miami, Florida-headquartered Freight Logistics on 16 April. Freight Logistics operates its own consolidation hub located near Miami International Airport and has offices in Argentina, Brazil and Chile. It was founded in 2001 by Gabriel de Godoy in San Jose, California with the aim of providing international transportation and fulfilment services to manufacturers, distributors, system integrators and resellers of high technology products. The IATA-accredited and licenced non-vessel owning common carrier now specialises in supply chain solutions, international transportation, customs brokerage, compliance, warehousing and distribution. Jorn Schmershal, CEO of Rhenus Air and Ocean Americas says: “The acquisition of Freight Logistics is an important step for us in expanding our business activities in the Americas region and follows our latest acquisition of Rodair in Canada in the beginning of 2019. These steps enable us to consolidate our network there and to serve both North America and the Latin American region from Miami as our new gateway.”

De Godoy says: “We’ve found an entrepreneurial-oriented partner in the Rhenus Group. Their worldwide network and significant industry expertise in air, ocean and contract logistics will enable us to continue creating distinctive innovative solutions for our existing and future customers in the region.” Rhenus has also introduced RHEGREEN, a free-of-charge ser-

vice to let customers compare carbon dioxide emissions and choose greener aircraft for their shipments. The system calculates rankings for airlines by considering the aircraft types, fuel efficiency and distances involved in the shipment. The calculation system was validated by an external organisation and is based on what aircraft is the most efficient in terms of CO2 emissions on any given route. RHEGREEN is available from Amsterdam Airport Schiphol to Chicago, Mexico City, Mumbai, Shanghai and Singapore with plans to expand to other destinations including Frankfurt, Brussels and Madrid among others. It was developed by quality manager Krista Zuurmond and procurement and product development for air Frank Swart at Rhenus Logistics Air and Ocean in the Netherlands. Tobias Bartz, board member of the Rhenus Group says: “The demand for a sustainable supply chain continues to grow. RHEGREEN is a major step in offering our customers the choice to reduce the CO2 emissions of their air freight. The roll-out of this free-of-charge service will offer our customers the opportunity to partner together with Rhenus on creating a more sustainable future.”

Goodbye Chronos, say hello to CoolGuard

PELI BioThermal will rebrand its Chronos products as the CoolGuard range, replacing the old brand by the beginning of July 2019. The newly named shippers will replace Chronos Express, which will become CoolGuard PCM and Chronos Advance will become CoolGuard Advance. The shippers will offer configurations with fewer components in exchange for shorter durations, making them more affordable for specific shipping lanes. The cold chain shippers will also provide additional temperature set points such as 16C, ideal for use in cold ambient conditions for controlled room temperature protection. David Williams, president of Peli BioThermal says: “These shippers are designed to perform exceptionally well at temperature protection for a one-way journey in a challenging shipping lane. The volumetric efficiency is also excellent, with a favourable ratio of the external dimensions to the internal payload dimensions. As a result, CoolGuard shippers offer significant savings on transport and storage.” Peli BioThermal also says the CoolGuard shippers are a more resource friendly product by eliminating shippers going into recycling and waste streams after their first journey. The CoolGuard shippers are made of components that can be recycled or easily placed in the waste stream due to a design that includes no toxic glues or other materials, making them more eco-efficient.

New role at IAG for Gunning

FORMER CEO of IAG Cargo, Steve Gunning has taken over as chief financial officer of International Airlines Group. He will take over from Enrique Dupuy de Lome who will step down from the role of chief financial officer and board executive director at IAG’s annual general meeting in June 2019. Willie Walsh, chief executive of IAG says: “It’s been a pleasure to work with him [Enrique] and I’d like to thank him for all his hard work in putting IAG on the map.” Gunning joined British Airways in 1998 and became managing director of British Airways World Cargo in 2007. He was appointed chief executive of IAG Cargo in 2011 before taking on the role of chief financial officer of British Airways in January 2016.

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Mega for ABC plus Plus moo-ve ça change,

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new Dimerco operation opened in Seattle on April 11, bringing its total network of owned offices in North America to 21

ith a solid 45-year portfolio of success in freight and logistics, Steve Walker is a former director of the $10 billion turnover logistics specialist DSV and founder of SBS Worldwide. He’s ratcheted up the Air Miles over the years and speaks with Air Cargo Week about how some of the newest things in airfreight are not all that new.

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percentage drop in EU airfreight in February, according to Airports Council International

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Some 46 years in freight forwarding is a remarkable achievement. Looking back what are the stand-out changes? I’ve seen numerous changes during my four plus decades in freight forwarding, but paradoxically, while many elements of forwarding have been totally transformed - most significantly since the advent of computerisation - it is astonishing how many processes remain relatively unchanged.

The physical movement of freight is slicker, and while automation is appearing in areas, the fundamental process is unchanged.

The most laudable change across the whole sector is the way that the customer - the shipper - has become the focus of the business and solutions/services adapted to serve them better. In the old days, the shipper adapted to the service offered by the forwarder.

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. If you had to list five major innovations that have changed the face of trade, which would you choose? There are five particularly stand out innovations that have transformed freight and international trade. a) The answer to the chicken and egg paradox is containerisation. Because without Malcolm McClean’s intermodal steel box invention, globalisation would never have happened.

Boeing 777-200LR aircraft converted by Emirates after it invested $150 million

Forwarders have been providing ‘open-book’ services for years, but such transparency has not been available to smaller shippers, who have relied on benchmarking to keep track of the market. Freight platforms, like Freightos, have evened the field. But only partially. No independent freight platform covers more than a fraction of the market by route or mode,

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aircraft on which Emirates has completed the installation of bespoke Expo 2020 Dubai liveries

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RELATIONSHIPS WILL ALWAYS BE CORE FOR FORWARDERS

The shipping container might seem an unlikely candidate for the most influential invention of the 20th century, but by slashing the cost of deep sea shipping, and massively speeding up the whole process, it has arguably had a bigger impact than the aeroplane or the microchip. b) The globalisation of trade is not a modern phenomena, and the creation of bodies like the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO), for which GATT is the foundation have contributed massively to the modern surge in globalisation, but there is no denying that the massive fall in transportation costs driven by containerisation has been the primary driver.

c) Economic reforms in China in the early 1980’s paved the way for the start of many well-established NVOCC operations and catapulted forwarding volumes, as the world’s factory opened for business, paving the way for the eventual WTO accession in 2001. d) At the same time as the world opened for business, computerisation arrived and offered hard-pressed forwarders with a replacement for the Banda machine and telex. Thought today’s systems are a far cry from the old IBM AS/400’s. e) And now we have the digitalisation of forwarding. Though we don’t really, as it started in the 70’s.

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. Digital forwarders are promising increased visibility and control, transparent shipping costs and more. Are they over-promising, or is their tech that good?

The technology to provide visibility and control over shipments, transparent shipping costs, more predictable and reliable transit times has been around for years. In fact these features were built into the software solution my team developed at SBS Worldwide, and which is now deployed by DSV.

. Should traditional freight forwarders be worried about the pace of change?

Forwarders are good at adopting technology, but with three caveats. Cost is always an issue, and for many forwarders, a critical weakness that blinds them to the opportunities that will follow investment.

When forwarders do invest the focus is almost always internal or process driven, when it absolutely should be pointed outward and focused on the customers.

The biggest achilles heel for many forwarders is that, when it comes to innovation, they are laggards and follow the herd. This time the herd may be culled.

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Is this the end of the road for ‘traditional’ freight forwarders, who rely on relationship and client focus?

Relationships and client focus will always be core for forwarders and some niche operators will continue successfully below the digital radar, but the industry is changing and those that don’t swiftly embrace digital and change their business models to take account of developments like digitalisation and 4PL will not survive.

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Is the collective noun of disruptor for new technology and technological innovations justified? The press like the disruptor handle, because it makes good headlines.

In reality the disruption has largely been the result of over-active PR agencies, taunting an aggrieved forwarding audience that have been labelled as ‘dinosaurs’. The simple fact is that there is no single technology, or group of technologies, that are replacing forwarders, though the myriad of rate platforms may well disrupt relationships between shippers and incumbent forwarders.

Enabling technology is far more interesting because it’s a rapid way to drive radical change, increasing the performance and capability of forwarders. The most topical example is the 4PL platforms that forwarders can integrate with their transport management system (TMS) to create new digital products and recurring revenues.

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languages spoken in IAG Cargo’s relocation service

250

partners milestone reached by Neutral Air Partner, the global air cargo network, as it welcomes new members in 90 +countries

9,090

kilometres distance between Amsterdam and Guanacaste Liberia (LIR) in Costa Rica, the latest KLM route to be launched

50,400

square feet facility for Aeroterm, a Class A multi-tenant facility at Cincinnati/Northern Kentucky International Airport, FedEx will be the main tenant

Have you voted yet?

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oting is open for the ACW World Air Cargo Awards 2019. Voting is secure, confidential and restricted to readers of Air Cargo Week and ACWDigital, plus other bona fide members of the worldwide air logistics community. All votes must be cast online using the official voting form on the website. Voting closes on Tuesday 30 April, 2019 www.aircargoweek.com/awards-voting/

ACW 22 APRIL 2019

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SCANDINAVIA

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Sweden still the most trade friendly nation in the world

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rowth may have slowed from double-digit to single figures but Swedavia’s airports are still performing well, according to director of cargo, Ylva Arvidsson. Across Swedavia’s main airports, growth was 2% with Stockholm Arlanda up 4.3% in 2018. This year has got off to a slow start though March numbers were promising. Arvidsson says growth in 2019 is likely to be very small or equal to 2018. Traditional Swedish exports including automotive, machine parts and pharmaceuticals remain strong, and the main imports continue to be apparel and perishables. There is some cross-border traffic, with Arvidsson saying: “The majority of our freight has Sweden as origin or destination, but there are also significant flows of Norwegian Salmon going via Stockholm and Gothenburg.” Swedavia is hoping to use Sweden’s location to its advantage. Arvidsson says: “Scandinavia is of course on the outskirts of Europe, but some routings actually pass straight over us: most lanes Europe-Japan for example pass over Southern Sweden.” It is looking both to the east for more connections to Asia and west where more capacity should be added. Over the longer-term, facilities will be upgraded, Arvidsson says: “At our Stockholm Arlanda Airport we are looking at relocating the total cargo area, this process will take many years to complete. Our focus is to build a sustainable airport for the future with

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ACW 22 APRIL 2019

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There’s plenty more fish in the sea to be exported from Oslo

Stockholm Arlanda Airport

the aim to become the leading airport in the Nordics.” The industry must come together to maintain Sweden’s strong position, Arvidsson says: “We just took the initiative to further cooperation within the air cargo industry by founding Air Cargo Sweden, a network where all stakeholders from the industry: airports, airlines, handlers and forwarders come together to tackle the main issues and to enhance the ‘Ease of doing Business’ within the air cargo world in Sweden.” As the biggest market, financial centre and hub for business in the Nordic region, Arvidsson says Sweden outperforms the rest of Europe in areas such as the economy and competitiveness. She says: “The country is a global leader of innovation with a highly skilled labour force, smooth business procedures and a stable economy. Sweden ranks at the top as the most trade-friendly and logistically efficient nation in the world, moving goods and connecting manufacturers and consumers with international markets.”

FOLLOWING on from the recent substantial growth at Oslo Airport, things were slower in 2018 as capacity has been allowed to settle and a hotter summer affected the salmon harvest. Speaking to Air Cargo Week in Oslo following the Nordic Air Cargo Symposium, Martin Langaas, director of traffic development and cargo for Norwegian airport operator Avinor explained that following 37% from 2017 to 2018, the hot summer was not good for salmon, lowering the slaughter weight meaning lower air cargo volumes. Annual growth was down to 1.4% in 2018 but 2019 should see a return to double-digit increases. Langaas says: “This year we have a lot more carriers, Air Cargo Global has added capacity, Emirates is flying seasonally with an extra weekly rotation and CAL has increased to Tel Aviv. For this year I believe it will be somewhere around 10% growth.” The weather will be a major factor, if it is another summer then the salmon will not grow as large. Langaas says: “We are in a beautiful position that we have growth ahead anyway but nature is controlling some of the growth.” Avinor has been successful at getting airlines to stay, with only Cargolux suspending services. Langaas: “We have 11 new freighter airlines, 10 are still flying. There is a market for them. More or less everything we’re pitching, we’re getting because we do it in the right way and we’re honest. We don’t want the airlines to not make money, it’s a very honest process. It’s not in our interest to sell capacity we cannot fill.” Langaas wishes he could spread out the capacity more equally. He says: “Global availability for freighters is good on Tuesdays, there is a low demand globally with salmon being a commodity that’s high density but not well paid.” Exports are widely marketed for weekend sales in Asia, so Tuesday is the best day to be distributed and ready for the weekend. Also, they need to work around salmon processing times. Langaas says: “There is little slaughtering of salmon at the weekend, they open the factories on Sunday evenings and Mondays so they need to process the salmon, put it onto a truck and get it to Oslo.”

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Langaas WFS will build a new seafood centre at Oslo, who were chosen based on demands from customers. It is on target to open in 2021. Langaas: “Seafood exporters set the criteria. They’re still working on the details, it is taking a little more time than expected but we believe that the end result will be good for Norwegian seafood exporters.” One issue Oslo has to contend with is the imbalance of imports and exports, with 30% for the former and 70% for the latter. Langaas says: “This is the irony because Norway has high consumption, we consume a lot of airfreight but we only have five million people. The seafood exports are huge, this gap is only going to increase.” Langaas is satisfied there are plenty of fish in the sea, so there will be no problems with salmon exports growing in a sustainable manner. He says: “The exports of salmon have been around 1.2 million tonnes for the last five or six years. The country is divided into different zones regulated by traffic rights. If there are biological issues in one area the whole region is not allowed to grow. The government is concerned that this should be sustainable.” Long-term, Langaas admits that 37% annual growth is not realistic but Oslo will continue to grow. He says: “We are facilitating the capacity to our biggest trade partners, we have to get routes to places like Singapore and Hong Kong. There will be steady growth ahead, the main focus will switch away from attracting new capacity to facilitating ground infrastructure. The size of the airport is creating a hub dynamic by itself so there is not as much need to attract capacity.”


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Orebro is well placed for growth

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ituated about half way between Stockholm and Oslo, Orebro Airport is well placed for the continued growth that is expected across the Scandinavian market. Johan Ljungberg, COO of the airport tells Air Cargo Week that cargo grew by 15% in 2018 and after a strong start to this year, the momentum seems to be continuing. He says most of the traffic is cross border, representing 99%. He says: “The main imports and exports that we handle are spare parts and supplies for the various industries, necessities for healthcare and e-commerce. We have DHL and TNT/FedEx established onsite at Orebro Airport.” Facilities at Orebro include a 3,300 metre runway, warehouse space covering 7,500 sqm, fully equipped machinery including a 35 tonne highloader and dangerous goods regulations expertise. Companies on site are performing well, with Ljungberg saying: “All our partner companies

onsite (DHL, TNT/FedEx & TAM (Täby Air Maintenance) are all growing and they are requesting larger warehouses and hangars, hence construction plans exist.” These companies are able to take advantage of Orebro’s location in the Nordic region. Ljungberg says that according to the World Bank Group ranking of logistics locations, Sweden is second to Germany. He says: “When Intelligent Logistic makes the same ranking of logistics locations in Sweden, Orebro is second after Gothenburg.” Ljungberg adds: “More than 6,000 deliveries per day are distributed by approximately 100 drivers to and from Orebro Airport. We also have large national assignments from The Swedish Defence, among others.” He is satisfied that, along with Orebro’s location between Stockholm and Oslo, the airport’s capacity for heavy volume loads is a strength. Ljungberg says: “We are Sweden’s largest freight airport for freight charters, and this volume is increasing.”

Danish factory keeps turning out cargo AFTER a fantastic year in 2017, Billund Airport managed to maintain good results in 2018, vice president of airfreight Jan Ditlevsen tells Air Cargo Week. The Danish airport handled 73,221 tonnes in 2018, up 1% on 2017. Imports were down 1.9% and exports were up 2.7%. This year got off to a slow start due to the early Chinese New Year but Billund is still 1.5% ahead of where it was in the first quarter of 2018. Billund handled 17,873 tonnes in the first quarter of 2019. Cross-border traffic is predicted to grow, with Ditlevsen saying: “We expect to see more cargo to/from Northern Germany, Sweden and Norway as Billund Airport is an uncongested fast lane to these markets especially for freighters that operate direct at Billund.” Being located in the middle of the ‘Danish

Factory’, Billund handles industrial cargo including wind turbines, pumps, electronics, machinery and other goods. Imports include textiles, electronics and a lot of salmon from both Norway and the Faroe Islands. China is the biggest market, and Shanghai is the top destination for both imports and exports. Ditlevsen says: “We are working on a direct China connection and the potential cargo is within our catchment area – we expect the Scandinavian market to grow with minimum 4% per year for the next 20 years.” Billund’s location is expected to serve it well in the future, with Ditlevsen saying: “With our position in the southern part of Scandinavia, we see Billund airport as a gateway to and from Scandinavia, with easy access to both import and exporters of cargo.”

QCS are happy and they know it MAINTAINING its focus on quality of service, Quick Cargo Service (QCS) managed to achieve growth of around 20%, according to Allan Bach Christensen, partner and managing director of QCS Denmark. He says that 2018 showed that a strong quality focus would be acknowledged and rewarded. QCS is growing with two extra members of staff in six months and one more planned for 2019 in the Copenhagen office. Christensen says: “Our plans are to consolidate ourselves in Scandinavia with focus on mentality and requirements – and with the aim of strong partnerships in the

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Scandinavian region where we are not personally present.” Christensen believes that Scandinavia is a simple market to operate in, helped by the people having an easy-going mentality. Christensen says: “The Scandinavians are some of the happiest people in the world – that just proves we are easy going up here. And as long as that remains there are only opportunities. We just have to remain cost-efficient and competitive, where the usual quality is intact and a valuable export commodity. Danish design, you know.”

ACW 22 APRIL 2019

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SEAFOOD

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A little fishy when the boat comes in

FRESH SEAFOOD CAN BE SERVED THOUSANDS OF MILES FROM WHERE IT IS CAUGHT, THANKS TO AIRFREIGHT

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ric Mauroux, global head of perishables logistics for AFKL Cargo, is a man who likes his seafood. At a 100-year old brassiere in Paris, he has been known to enjoy a seafood platter of crab, rock lobster and oysters. In fact, this makes the Frenchman the ideal consumer of some of the 50,000 tonnes of fresh seafood moved by his airline annually. The airline typically carries fresh seafood as part of its perishables traffic within its cool chain operation.

The vast bulk of this cargo is dead, though often transported within hours of being landed. There are some volumes of live lobsters, fish eggs and oysters that are live. Any examples of live sea life, such as live salmon or shark even if destined for the table, would be treated as wildlife by the airline. Mauroux says: “We handle some 50,000 tonnes of seafood a year. This is about 20% of the total perishables traffic we carry. “It is our third most important traffic after fruit and flowers, which is in line with the industry,” he says.

Sensitivity not value

The live seafood, such as lobsters, will attract a premium at destination, which might be thought to attract thieves. That is a market func-

tion that does not concern Mauroux. Instead, his and the team’s concerns are with the sensitivity of the live creatures in their care. “A lobster’s life cycle is very limited,” he says. “They cannot travel for more than 36 hours. We work hard to ship them to North America in 27 to 28 hours.” The airline ships great quantities of live French oysters to eager buyers in Southeast Asia and Hong Kong. Frozen seafood is rarely shipped by his airline, the vast majority being shipped as a commodity by seafreight, Mauroux adds. Seafood moves under boxed conditions in AFKL Cargo. “This is a b2b business and we work with trade partners who certify the cargo for us. “It is mostly boxed and these are opened for inspections performed in airline facilities.”

Delta Cargo gets fresh with seafood for its customers

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The carrier moves some 7,000 tonnes of seafood, with 4,600 tonnes within the USA. “In the US we move seafood/fish from Florida, New Orleans, Hawaii, Boston, Anchorage, and Seattle. Globally we also see fish from Santiago, Chile and San Jose, Costa Rica” she said. “We have strong seasonal movements of salmon from Anchorage during the summer season that runs for three months.” The spokeswoman revealed that her favourite seafood dish is lobster pie with a cup of clam chowder. This dish is inspired by the original lobster Pie recipe from The Publick House in Sturbridge, Massachusetts, which ran in the October 1949 issue of Yankee Magazine. “It is intensely rich and unforgettably delicious, it’s a celebration food!”

OR Delta Cargo, seafood, based on the 2018 data, represents some 10% of the perishables traffic moved. A spokesperson for the US carrier explains that seafood is predominately in demand all year round. “We see definite spikes starting two weeks before Christmas going through to New Year’s Eve. We also see spikes for Father’s Day, Memorial Day, Labour Day and the Lenten Season through Easter,” she said. “We move mostly “Fresh” Seafood as cargo. Processed in cans and/or prepared often times moves via ocean and/or truck. Due to the shelf life for fresh seafood, air transportation is needed for both US export and US domestic.” The airline moves live seafood including lobsters, oysters, clams, crawfish, mussels and scallops.

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