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08/04/2019 12:48

The weekly newspaper for air cargo professionals No. 1,041

22 July 2019

A ray of hope for TIACA

Why Steven Polmans is the man for the job

Amazon delivers Prime Day misery Pilots join warehouse staff protesting against working conditions

PICTURE CREDIT: TEAMSTERS LOCAL 1224

s Amazon warehouse workers went on strike to complain about working conditions on Prime Day, pilots who fly for contractor airlines joined them in solidarity. Captain Michael Russo joined striking workers in Shakopee, Minnesota who walked out in protest at working conditions during the two-day Prime Day sale, which took place on 15-16 July. The pilot, who is celebrating his 15th anniversary of being an Atlas Air pilot this month joined the protestors in solidarity. Atlas Air, along with Southern Air and ABX Air have been flying Amazon Air’s aircraft on US domestic services. Speaking to Air Cargo Week on his

way back to Chicago after the protest, Captain Russo said the event was “pretty big” and was joined by a lot of different workers from across the supply chain. There was support from the fulfilment centre workers, truckers and last mile delivery drivers. He says: “It is important to show solidarity, we are just one link in the supply chain. Amazon needs the chain to be well connected. It is important to be out there even though we work for a contractor.” The pilot union, represented by Teamsters Local 1224 delivered adverts on their website, pilotsdeservebetter.org highlighting the issues as more aircraft are delivered to Amazon Air, but fewer pilots are

available to fly them. Pilots have been locked in a contract negotiation battle with the airline since 2016. Captain Russo says contracts are constrained under the Railway Labor Act of 1926, where the contract does not expire but becomes amendable. The pilots were already dealing with the Atlas Air and Southern Air contracts, which Captain Russo describes as “sub-standard”, and then Amazon came along to deliver more problems. He says: “They have taken two sub-standard contracts between Atlas Air and Southern Air and we have to go through arbitration with no votes or negotiation. Then Amazon came on to the scene and increased the

burden. They want to expand and add more planes but we can’t recruit pilots with the present terms and conditions.” Pilots are leaving the airlines to take up opportunities at rivals including UPS, and Captain Russo believes that management are desperate, taking out adverts for pilots and lowering entry requirements. Calling management delusional, Captain Russo says: “We have been warning them that they have a staffing crisis. It has taken longer than expected but aircraft don’t have crews assigned to them, management are asking people to come in on their days off and pilots are flying for longer and becoming more fatigued.” He also has little faith in the planned management transition at the end of the year, with John Dietrich replacing William Flynn as CEO. Captain Russo believes this will result in an “intensification” of the problems, describing management as “dysfunctional”. Captain Russo says: “All we want is our rights under section 6 of the Railway Labor Act. We have a right for collective bargaining for a contract. Management are running around, they believe they are going to get a better deal. With present fuel prices there is no reason why we can’t have an industry standard contract, something they are trying to subvert under the Railway Labor Act.”

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INSIDE AFKLMP IS IN THE CLOUDS

AIR France KLM Martinair Cargo will be the launch carrier of Accenture’s AFLS Exchange cloud-based connectivity and collaboration platform ... PAGE 2

TYRE FAILURE CAUSED CRASH

THE crew aborting take-off due to tyre failure caused a UPS MD-11F to be written off at Seoul’s Incheon International Airport in June 2016 ... PAGE 3 A STRONG VOICE IS NEEDED

THE Middle East may be the fastest growing region for air cargo but it is not being actively represented, something Dr Khalfan Al Shueili intends ... PAGE 4

Pilots who expressed solidarity with this strike ... also expressed solidarity with these strikes ACCORDING to CNN, as well as the strike action at Amazon’s Shakopee, Minnesota facility, supporting rallies and protests for the Amazon strikers were planned to be staged at locations in New York, San Francisco, Seattle, and Washington DC. Protestors decry Amazon’s dealings with US Immigration and Customs Enforcement (ICE) division.

Germany TWO thou-

sand German workers took part in strikes at warehouses in Werne, Rheinberg, Leipzig, Graben, Koblenz and Bad Hersfeld.

Spain WORKERS in Madrid's San Fernando de Henares warehouse planned to demonstrate for two days as part of the global protest action.

UK THE GMB union staged Prime Day protests outside fulfilment centres such as Rugeley, Swansea, Peterborough and Doncaster.

Poland POLISH

workers - in a struggle with management since May - said they will protest until a collective agreement with Amazon is agreed.

NO MORE KNOCKING ON DOORS

FOR online booking platform cargo.one, airlines are now knocking on their door, eager to sign up to the service. The platform has been growing ... PAGE 6

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AFKLMP touches the clouds with AFLS Exchange

ir France KLM Martinair Cargo (AFKLMP) will be the launch carrier of Accenture’s AFLS Exchange cloudbased connectivity and collaboration platform. Developed by Accenture’s Freight and Logistics Software (AFLS) business group, the platform gives carriers real-time visibility into their partner and joint venture networks. The service gives customers more product and route options, and enables faster response times by replacing manual processes. Marcel de Nooijer, executive vice president of AFKLMP says: “We are committed to leveraging innovative technology to transform our business, and AFLS Exchange will make integrating with our partner network simple and quick. We’re confident that AFLS Exchange will help us expand our network footprint and enable us to generate even greater value from our partnerships with other carriers.” AFLS Exchange integrates with a carrier’s existing booking system and allows onboarding, configuration and offboarding of partners. Accenture says that providing fast and secure access to their partner’s system, carriers reduce the effort and costs associated

with manual input and processing. Ganesh Vaideeswaran, managing director of AFLS says: “We are proud of this unique industry solution that addresses several painpoints we have discovered in our broader work with leading cargo carriers. The platform is highly configurable, reliable and equipped with a plug-and-play connector to meet the needs of every carrier and their partner networks.”

WebCargo to open portal with United Cargo UNITED Cargo and WebCargo by Freightos will work together to design and release a new online portal based on WebCargo Horizon. The online portal will provide customers with expanded on-demand booking, dynamic pricing and real-time updates on United’s global cargo network. The portal is the first of many digital transformation strategies for the carrier, with customers benefitting from a redesigned website and other innovations. Jan Krems, president of United Cargo says air cargo customers want a quick, fully digitised sales experience. He says: “WebCargo by Freightos is a recognised leader in providing the level of digital connectivity we want to deliver. We believe the combination of WebCargo by Freightos’ proven

technology innovations and United Cargo’s unmatched capacity and service will provide extraordinary benefits for our customers.” Manel Galindo, CEO of WebCargo says: “United Cargo’s technology vision aligns with our goal to eliminate communication barriers between forwarders and carriers through the industry’s most comprehensive eBooking platform, enabling industry-wide connectivity and a better shipper experience.”

THE International Air Transport Association (IATA) and the Animal Transport Association (ATA) have joined forces to push industry adoption of the CEIV Live Animals programme. This was formalised through a memorandum of understanding (MoU) signed between IATA and ATA at ATA’s 49th Annual Conference in Budapest, Hungary.

Under the terms of the MoU, ATA will encourage the adoption of CEIV Live Animals among its members. IATA and ATA will continue to ensure ATA members are aligned with the CEIV Live Animal programme requirements. They will collaborate to improve handling and transport of animals and ensure access to adequate training for all stakeholders involved.

IATA and ATA to push CEIV Live Animals

Quote of the week

“Corporations and mankind are made and have to make progress along with time, otherwise there is no meaning to our existence” Dr Khalfan Al Shueili, CEO of Oman Aviation Services Read the full interview on page 4

ACW 22 JULY 2019

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Tyre failure caused flight 5X61 crash

he crew aborting take-off due to tyre failure caused a UPS MD-11F to be written off at Seoul’s Incheon International Airport in June 2016. A report by South Korea’s Aviation and Railway Accident Investigation Board says UPS flight 5X61 suffered a runway excursion and nose gear collapse on take-off on 6 June 2016. The MD-11F, which was bound for Anchorage Ted Stevens International Airport was taking off from runway 33L when the left-hand tyre, number 9 on the central landing gear as the aircraft reached V1 speed after a ground run of 6,413 feet. Number 10 on the same landing gear also ruptured and vibration and torsion forces caused the lower drag brace of the central landing gear to break, with the drag brace hitting the body several times. This caused a rupture of the hydraulic system of brake system 1, reducing break efficiency to 48% as the crew rejected the take-off. With 4,635 feet of runway remaining, the aircraft began decelerating but it required at least 5,500 feet, causing the MD-11F to stop about 1,591 feet past the end of runway 33L, with the nose gear collapsing and engines 1 and 3 contacting the grass. The aircraft, N277UP, which was built in 1995 and had flown 63,195 hours was written off.

Qatar Airways flies to Singapore QATAR Airways Cargo has added Singapore as the newest freighter destination on its transpacific freighter route, with two Boeing 777 Freighter flights a week. The flights arrive into Singapore from Chicago, and from Singapore depart for Macau on Tuesdays and Saturdays onward to Los Angeles, Mexico City and Guadalajara before arriving in Doha via Liege. More than 100 tonnes of cargo capacity will be available on each flight leg. Guillaume Halleux, chief cargo officer of Qatar Airways says: “The addition of Singapore to the transpacific route will enable exporters in Singapore to transport their cargo to North American markets directly and faster without a stopover in Doha.” Lim Ching Kiat, managing director for air hub development at Changi Airport Group says: “Qatar’s new freighter flights will deepen Singapore’s air connectivity with the USA, our third largest cargo market. In addition, the new flights will also link Changi Airport to Macau and Mexico via freighters for the first time.”

Menzies extends Air China deal MENZIES Aviation has extended its partnership with Air China, with a new ground handling contract at Nice Airport and a renewal in San Francisco. The three year contract at Nice Airport starts on 3 August 2019 and will see Menzies Aviation providing ground handling services on Air China’s three flights a week from Beijing Capital Airport. The agreement covering 156 flights per year extends Menzies’ ground handling capabilities at Nice, where it now services narrowbody and widebody flights. At San Francisco Airport, Menzies has renewed its cargo contract with Air China for three years, where it handled over 8,000 tonnes per year for the airline.

Picture credit ARAIB, aviation-safety.net ARAIB investigators noted it is inherently difficult to determine the flight performance after V1 when little information and time is available to decide whether to go or not. The UPS flight manual states that after V1, rejecting take-off is not recommended unless the aircraft cannot fly, but ARAIB noted it would be helpful if flight crews were given clearer definitions to judge flight performance. The report says the main cause of the accident was the crew abandoning take-off due to tyre failure. Limited time and available information, instability of dragging the central landing gear and decreased braking performance were contributing factors.

Cargolux Italia adds Incheon services

CARGOLUX Italia has opened a new route from Milan to Incheon, connecting the main gateways of Italy and South Korea twice a week. The services started on 16 July, flying from Milan Malpensa Airport to Seoul’s Incheon International Airport on Tuesdays and Sundays. The service operates on a Malpensa – Incheon – Zhengzhou – Malpensa route, and the main commodities on the route will include fashion items, machinery, luxury cars, pharmaceuticals and perishables. Seoul is the fourth export destination out of Italy behind New York, Shanghai and Hong Kong, and ahead of Tokyo. The direct connection provides opportunities to link Italy’s industrial heart with South Korea’s commercial gateway, home to the Incheon Free Economic Zone. Fabrizio Cortese, chief executive officer of Cargolux Italia says: “We are delighted to have added Incheon to the Cargolux Italia service provision. The Korean destination was the last missing piece to complete our network with the top five Italian export destinations.”

Geodis goes airside at Schiphol GEODIS Netherlands has opened its new airside gateway at Amsterdam Airport Schiphol, located airside to improve speed and security of handling. The Amsterdam gateway consists of 2,500 sq m of warehouse and office space directly next to the airport’s runway. Geodis opened the gateway in reaction to the growth in Amsterdam, to further accelerate expansion while anticipating the demands of the future market. Ellis de Jong, operations director freight forwarding says: “We estimate that gateway will bring a significant decrease in airfreight handling times, ensuring quicker delivery of cargo and a better service to our customers.”

Turkish Cargo swoops in to save Dobrila the vulture WHEN Dobrila the griffon vulture became exhausted on its seasonal migration route, Turkish Cargo carried the rare bird to its new home in Serbia. The endangered griffon vulture was migrating from Serbia before it was found exhausted by farmers in Sanliurfa, 1,600 kilometres into the journey. After undergoing checks at Sanliurfa’s Wildlife Rescue and Rehabilitation Centre, Dobrila would have been free to go if it was able to fly. Officials at the Ministry of Agriculture and Forestry established contact with Serbian counterparts using the tag and tracking number on Dobrila’s foot. Following discussions, it was decided to send Dobrila to the Biological Research Institute in Belgrade. After Turkish Cargo carried the endangered bird to Serbia via Istanbul, Dobrila was handed over to Serbian officials during a ceremony attended by Tanju Bilgic, ambassador of the Republic of Turkey in Serbia, and Goran Trivan, minister of environmental protection of Serbia.

Irena Hribsek, a biologist from the Foundation for the Protection of Birds of Prey says: “Today is a very special day for Dobrila, because after months of rehabilitation, it will fly for the first time. We thank Turkish Cargo for their support.”

ACWBITES BOEING and Qatar Airways finalised an order for five Boeing 777 Freighters during a ceremony at the White House on 9 July. The deal was signed by His Excellency Akbar Al Baker, CEO of Qatar Airways Group and Kevin McAllister, president and CEO of Boeing Commercial Airplanes. US President Donald Trump and Emir of Qatar, His Highness Sheikh Tamim bin Hamad Al Thani witnesses the signing. The purchase was first signed as a memorandum of understanding at the Paris Air Show. BOC Aviation has delivered the first of three Airbus A330 Freighters to Sichuan Airlines for lease. The aircraft are part of the company’s existing owned and managed portfolio, with the remaining two aircraft scheduled in the second half of 2019. 2019 is proving to be a tough year for Hong Kong International Airport, with cargo throughput down 6.7% to 2.3 million tonnes. Weak demand hit all three categories with imports, exports and transhipments all falling. June was down 8.6% to 387,000 tonnes with transhipments down 13% and imports by 11%. Throughput to Southeast Asia and Europe decreased most significantly. CARGO volumes at Frankfurt Airport were down 4.7% in June to 174,392 tonnes due to weakening global trade, as well as the timing of holidays. Pentecost and Corpus Christi were both in June, meaning fewer working days. Traffic to and from the USA was strong, while Northeast Asia was weak, particularly with China, South Korea and Japan. From January to June, cargo was down 2.8% to 1.06 million tonnes. FREIGHT volumes at Leipzig/Halle Airport rose by 0.5% in the first half of 2019 to 609,644 tonnes. Aircraft movements also increased by 0.9% to 38,659. INTERNATIONAL insurer TT Club and the International Federation of Freight Forwarders Associations have announced the regional winners who will present their dissertations to the Award Steering Committee at the FIATA World Congress in Cape Town on 1-5 October. Evgeniya Khokhlova of Russia will represent Europe, Enos Chapra of Zimbabwe will represent Africa and the Middle East, Rachael van Harmelen of Canada will represent the Americas and Philip Burgess of New Zealand will represent Asia Pacific. BONANG Mohale resigned as a non-executive director of Airports Company South Africa on 1 July to join the board of a JSE-listed company. He had joined the board on 1 July 2018. EMIRATES will add daily flights to Mexico City via Barcelona from 9 December. The Boeing 777-200LR flight will offer up to 14 tonnes of cargo capacity for Mexican exports including avocados, berries, mangoes, automotive parts and medical supplies. FAROE Islands flag carrier Atlantic Airways has taken delivery of its first Airbus A320neo, MSN8918, leased from Air Lease Corporation. The airline already had two A319neos and one A320ceo in its fleet and has placed firm orders for two additional A320neos. AMERICAN Airlines has extended cancellations for Boeing 737 MAX flights until 2 November, cancelling about 115 flights per day. The airline says it is confident that the impending software update and new training elements will lead to recertification of the 737 MAX this year. PAKISTANI airspace has been fully reopened to civilian flights, five months after it was closed due to ongoing issues in the disputed Kashmir region with India. Services returned to normal on Tuesday 16 July.

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ACW 22 JULY 2019

MIDDLE EAST

level support, with Shueili saying: “The government of Oman, led by his Majesty Sultan Qaboos bin Said, has substantially invested in infrastructure needed to enable the growth of Oman Air cargo with three cargo complexes being established in Muscat, Duqm and Salalah.” He believes that the industry will continue to grow in the long term. “Yes, there will be hiccups and challenges along the way – the trade wars, security concerns, etc, but we are optimistic by nature, and these small obstacles cannot stop the growth of world trade and our air cargo industry in particular. Otherwise we will all be taking a step backwards. Corporations and mankind are made and have to progress along with time, otherwise there is no meaning to our existence.”

Long term vision

A strong voice is needed on the global stage

he Middle East may be the fastest growing region for air cargo but it is not being actively represented, something that Dr Khalfan Al Shueili intends to put right. The CEO of Oman Aviation Services was elected to the board of The International Air Cargo Association in April and believes this representation will help the region and outsiders who want to do business in the Middle East. Oman Aviation Services, which was founded in January 2017 provides aviation related services throughout the Sultanate of Oman. Shueili believes joining TIACA will allow Oman Aviation Services to broaden its horizons in line with the outlook and vision for the future development of air cargo in Oman. He says: “The new facilities have been equipped with the latest technologies that contribute to handle different types of cargo shipments efficiently. These facilities, which are distinguished by the modern and sophisticated technologies, also reflect the great interest of His Majesty Sultan Qaboos bin Said and the government in supporting this vital and promising sector.”

ACW 22 JULY 2019

As has been widely reported, cargo volumes have been going down around the world but Oman has experienced double digit growth. With limited manufacturing facilities, Oman and other Middle Eastern companies have developed capabilities like distribution and network connectivity. Shueili says: “Our location makes us ideal in playing that role as we are in the crossroads between the manufacturing economies of Asia and the consumption markets in Europe. Also, Africa is an interesting market as it develops and our proximity to the area helps to play a role in the air cargo market for the region.” Oman is benefitting from upgraded facilities at the new Muscat International Air Cargo Terminal. The 22,780 sq m air-conditioned warehouse has the capacity to handle 350,000 tonnes per year including special cargo such as perishable goods, animals and hazardous materials. A new cargo terminal at Salalah Airport will also boost cargo handling, providing capacity for sea-cargo movements from the Far East and the Indian Subcontinent to Europe, Africa and the USA. The 20,000 sq m area has a capacity of 50,000 tonnes, expandable to 100,000 tonnes per year. Shueili says Oman Air has made significant inroads in online and offline cargo markets. He says: “The upgraded cargo facility now aligns the company with world-class, globally competitive transport and logistics industry standards and trends.” The sector is receiving high

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Longer term, Oman Aviation Services wants to support the economy as well as logistics and tourism sectors in the Sultanate by attracting investment opportunities and increasing national exports. Shueili says: “This in turn strengthens the national economy in line with the Oman vision 2040 that has emphasised positioning Oman as one of the major logistics hubs in the Middle East.” The target is to increase cargo volumes to 780,000 tonnes by 2030 and reach 1.5 million tonnes by 2040. Shueili says: “This will be achieved through three strategic pillars that have been developed to transform Oman’s air cargo sector – to retain market share, enable globalisation of national industries and establish a logistics hub for global players.” In the two years since the establishment of Oman Aviation Services, Shueili is proud of its achievements to help improve quality and service standards. He believes it has played a major role in the success of Oman Air and Oman Airports. He says: “We have achieved a lot together. The companies under the OAS group have achieved the targets that have been set up for them, in terms of performance within specific standards. They have also realised or are in the process of having international parties certifying and endorsing the quality programmes in their respective businesses.”

Work together to handle the heat

Working together can help overcome challenges in the Middle East such as high temperatures beyond 40 degrees. Shueili says stakeholders have to overcome this challenge, calling it a primary responsibility to customers, the shipping public and people of Oman. He says: “We are embarking on this journey and we want the whole airport community to be involved – not only the cargo terminal operator, or the ramp operators. We need to send a strong message to all shippers and users of the Muscat International Airport that all temperature-sensitive cargo – perishables, pharmaceuticals, etc, is handled according to established processes that have been endorsed by the industry.” Skills of the staff is another area of improvement. Shueili says: “The world and its technologies are moving very fast – if we are not keeping up, we will be left behind. Digitalisation is the hot topic now, and I can see a lot of advantages in tapping on it.” Shueili hopes that representation on the TIACA board will benefit everyone, both in the Middle East and outside. He says increased professionalism of cargo handling can be achieved through proper training and accreditation, particularly for products such as perishables that can be damaged by the high temperatures in the Middle East. He says: “There is a lot of education that needs to be done. We see a lot of food wastage because of cost factors or ignorance; perishables simply get damaged due to shippers/handlers not providing the necessary packaging or alerts when this cargo arrives in the Middle East.”

TIACA is the right forum

Shueili thinks the international presence of TIACA makes it the ideal forum to discuss issues and solutions, create awareness, benchmark best practices and set industry standards. He comments: “I can see plenty of benefits for the industry through the industry voice of TIACA.” He is confident that a greater Omani presence on the TIACA board will promote air cargo growth in the Middle East. Shueili says: “Air cargo demand in, out and transiting through the Middle East is expected to benefit from growth that is increasingly driven by emerging and developing economies. Furthermore, global air cargo traffic is projected to grow at 3.8% per annum, with the Middle East projecting the strongest growth.”

SECURITY

Keeping the bad boys out

ATA (International Air Transportation Association) naturally does not pull its punches when it talks about this topic: “Security is a critical element of the air cargo supply chain. Regulators and industry are working together to further secure the supply chain while ensuring the flow of commerce,” it says. This prompted IATA to set up the Cargo Security Working Group (CSWG) to ensure that the experiences and constraints of the airline industry are considered in the development of effective security regulations. To support regulators and strengthen supply chain security, IATA and the industry are working on the following main initiatives:

$607 million value

In its ‘Global Air Cargo Security & Screening Systems Market 2019-2024’ report, ResearchAndMarkets.com valued the global air cargo security and screening systems market as worth some $607 million in 2018. Looking forward, the value is projected to reach $832 million by 2024, expanding at a CAGR (Compound Annual Growth Rate) of 5.5% during 2019-2024. This report provides a deep insight into the global air cargo security and screening systems market covering all its essential aspects. This ranges from macro overview of the market to micro details of the industry performance, recent trends, key market drivers and chal-

lenges, SWOT analysis, Porter’s five forces and value chain analysis. Assured security is a key factor in the demand of air cargo security and screening systems, notes the company. These systems can scan parcels and detect hidden illegal items, such as explosives, weapons, chemicals, firearms and narcotics. In the recent past, a rising risk of attacks and threats through explosives have driven the increasing adoption of these technologies. Moreover, these modern systems are capable of screening high volumes of cargo in shorter time spans. Due to a considerable increase in global air cargo traffic, the need for effective and powerful security and screening systems has also increased. Security checks for cargo shipments through physical inspection was possible only in the past when the air cargo traffic was scanty; however, with the rise in air cargo services, airport authorities are under increasing pressure to implement technologies that enhance screening and surveillance of high volumes of cargo. On the market are three technologies playing their part: X-ray systems, ETD (explosive trace detection) and EDS (explosive detection systems). The market has been segmented as small cargo, break and pallet cargo and oversized cargo. Key players include 3DX-RAY, American Science and Engineering, L-3 Communications Security and Detection Systems, Morpho Detection, Rapiscan Systems, Armstrong Monitoring, Astrophysics, CEIA, Autoclear and Gilardoni. Meanwhile around ten months ago, West-

minster International secured a contract valued at approximately £300,000 for the supply of a Dual View Cargo Pallet X-Ray Screening Solution for an air cargo logistics operation at a major UK airport. The scanner utilises dual view technology which views objects from two angles – an “up shooting” view from beneath the object and a “side shooting” view from the side, providing the operator with an improved ability to view odd-shaped objects and to identify potential threats more quickly and easily than by using a single-view system. The scanner is equipped with high-powered generators for improved image screening and increased penetration. It has six-colour imaging which enables operators to view screened objects in six colours, with each colour correlating to a specific range of atomic Z-numbers. Six colour Imaging enables operators to achieve optimal material identification and improve throughput with more effective screening technology. This scanner has been specifically designed for in-depth screening clarity of air cargo.

Not such petty theft

In the BSI & TT Club Cargo Theft Annual Report 2018, the authors note that incidents of petty theft can often be overlooked. They can be seen as too much trouble to correctly handle. Yet, outside of airfreight, sociologists developed the ‘broken windows’ theory that states that visible signs of crime encourages further crime and disorder, including serious

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crimes. Staff getting away with petty theft will inevitably become greedy and their endeavours will escalate to a more serious problem. Through analysis of available data, the BSI and TT Club have identified a common vulnerability – ‘the Insider Threat.’ While people are an organisation’s biggest asset, they can also pose an insider risk. As organisations implement increasingly sophisticated physical, procedural and cyber security measures to protect their assets from external threats, the recruitment of insiders becomes a more attractive option for those attempting to gain access. The UK Government Centre for Protection of National Infrastructure (CPNI) defines an insider as “a person who exploits, or has the intention to exploit, their legitimate access to an organisation’s assets for unauthorised purposes”. An insider could be a full-time or part-time employee, a contractor or a business partner. They could deliberately seek to join an organisation to conduct an insider act or may be triggered to act at some point during their employment. Employees may also inadvertently trigger security breaches through ignorance of rules or deliberate non-compliance. Financial gain was the single most common primary motivation (47%), mostly linked to process corruption or giving access to assets. More than half of the cases were identified within the first year, while 60% were individuals who had worked for their organisation for less than 5 years.

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The big interview with cargo.one’s Moritz Claussen Founded in 2017 by Moritz Claussen, Oliver Neumann and Mike Rötgers, cargo.one allows freight forwarders to book cargo capacity like they were booking a flight for their next holiday or business trip. Deputy editor James Muir sat down with Moritz at air cargo Europe to find out why airlines are so eager to sign up to the platform.

or online booking platform cargo.one, airlines are now knocking on their door, eager to sign up to the service. Speaking to Air Cargo Week at air cargo Europe, co-founder and managing director Moritz Claussen explained how the platform had been growing substantially, with forwarders and airlines getting on board. The booking platform for freight forwarders allows them to search, compare, book and manage airfreight capacity across airlines. Claussen says the advantage of cargo.one is that the price you see is what you get based on available capacity, and is instantly bookable. He explains: “We don’t go out and distribute rates and ask forwarders to request to be booked but we give them an offer as you would get on Skyscanner or on Kayak to get that visibility but also to be able to book.” cargo.one distributes capacity for cargo airlines in a manner reducing manual processes. Bookings can also be changed and cancelled, reducing the manual effort for the airlines and forwarders. The platform also helps airlines reach a larger audience of freight forwarders. The product is free for freight forwarders, resulting in massive growth. Claussen said that at the World Cargo Symposium in March, cargo.one announced it had 150 freight forwarders

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signed up. At the time of the interview on 5 June, this had grown to 250 freight forwarders, and not just the big players such as Hellmann or Agility or Dachser, but smaller companies too. There are rate distribution platforms out there distributing rate sheets to get an overview across multiple airlines but Claussen says it is difficult to book these rates due to airlines introducing revenue management systems. “The rates that are being distributed are not always bookable. We don’t distribute those rates but integrate with revenue management systems of airlines to display a rate that is bookable in an instance, and that is new to the market,” Claussen explains. This feature was not previously available and Claussen cites that as a reason why cargo.one is growing so rapidly because it reduces the workload for freight forwarders and tells them instantly what they can or cannot book. Claussen believes that the air cargo industry has been slow to accept that visibility of capacity and pricing is good for the market. He comments: “I think up until maybe two years ago it was treated as a trade secret, how much capacity or whether capacity was available at all. Airlines were choosing to make this information only available when they wanted and only in very limited ways. With shippers’ expectation rising and forwarders needing

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to get the rates, that is changing.” The process has always been there but Claussen says it was not digitised, with forwarders having to call maybe six airlines or write emails. Claussen believes that the services like the one offered by cargo.one will become the standard way of doing things in the future, saying that airlines are increasingly eager to sign up. He says: “They see that they reach more customers, they have cheaper distribution. On the other hand, we see that forwarders like the product. In our opinion we see that forwarders like the product. It’s not for every airline instantaneously but over time I think most airlines will sign up.” Claussen says there has been a notion that airlines are not ready for such a service, but he believes this is a mental barrier rather than a technological issue. The cargo.one team has found it can build the technology for airlines, even the smaller or more traditional ones to make the capacity available to freight forwarders. The team also found they could give the same customer experience to the freight forwarder as they could expect from a larger airline. cargo.one started out with the Lufthansa Group, originally with Lufthansa Cargo, followed by Brussels Airlines, Austrian Airlines and Eurowings. Finnair Cargo went live in May and Volga-Dnepr Group airlines, AirBridgeCargo Airlines and CargoLogicAir signed up during air cargo Europe, the first freighter only airline to offer their capacity. Claussen expects another six airlines to go live this year. Claussen was very happy to get the two freighter airlines on board, as they have considerable capacity out of Europe heading to Asia and North America. More importantly, Claussen says it gives small and medium sized forwarders access to freighter capacity that may not have been previously accessible. Having gained these two freighter airlines, Claussen is confident that more will follow. “We’re in good talks with several all-cargo airlines,” he says. All of this is impressive considering neither Claussen nor fellow co-founders Oliver Neumann or Mike Rötgers previously worked in the logistics industry, having spent the last decade building start-up companies. In 2017, Claussen and the team decided to embark on a new adventure, exploring the field of logistics. They decided that there were still huge opportunities to digitise the market. What kicked things off was when they were sitting with a freight forwarder in Frankfurt, finding out what daily challenges he faced. The forwarder received an email from a shipper wanting to move 470 kilos of milk powder from Frankfurt to Shanghai. What happened surprised them. Claussen explains: “He opened Outlook and opened an email, blind copied 12 airlines and general sales agents to say I have these 470 kilos of milk powder that should go to Shanghai tomorrow, what’s your price?” Their previous experience of aviation was as passengers when booking tickets, so this really surprised them. When they questioned the forwarder whether this was the normal process, he informed them it was also done on the telephone. They found out this was not unique, right from the smallest forwarders to the big boys, this is how it was done. When they visited the airlines, they found that the airline would receive the email, figure out a price, copy and paste into an email and send it back. Describing the process as cumbersome, expensive and troublesome, Claussen says this was a good starting place to build a marketplace to connect the buyer and seller through technology in a more efficient, frictionless process. Forwarders were quick to embrace cargo.one because it made their lives so much easier. Airlines who have signed up have seen the benefits, but when making the initial approach, Claussen says there is a mental barrier, not believing they are technically ready and having often been burnt by previous experiences. He says: “Our approach is different. We start very small with incremental steps. We help them to build whatever needs to be built and we build it for them to make it possible. We can then integrate with airlines that were fully manual to deliver the same customer experience to a freight forwarder as an airline that is fully capable.” The focus now is to add more airlines. After the World Cargo Symposium in Singapore this year, Claussen noticed a change, customers were coming to cargo.one, knocking on their door, not cargo.one knocking on the customer’s door. Having traditionally covered Germany and moved into the Central European market, the plan is to move into new geographies. Claussen says: “The next markets are all the other European markets to fully open them with dedicated sales and support teams and also localise the product. Then we want to expand into North America and Asia, making that an indicator to adding enough capacity to make this a compelling offer.”

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aircargoweek.com 07_22 July 2019.indd 1

ACW 22 July 2019

7 16/07/2019 11:50

HE PRETENDS TO KNOW WHAT HE’S TALKING ABOUT

My POV: Polmans takes “excellent” lead for TIACA Having joined the air cargo media business 44 years ago, Ray Crane is now happily retired but keeps in touch with the global air cargo business. Here he shares his history with TIACA and his views on where the Association is going in the 21st century with Steven Polmans in the hot seat

n the 24 June 2019 issue of Air Cargo Week, the headline “Polmans gets ready to lead TIACA 2.0“ caught my attention as a past board executive and Hall of Fame member of TIACA. A little bit of history here. The Air Cargo Forum (ACF) was an event owned by the US Society of Automotive Engineers but did not fit in with the job function of many of their members. However, some SAE members were air cargo specialists and took over the ACF as a means of funding what became The International Air Cargo Association (TIACA). An initial planning meeting was held at the Wings Club in New York. The meeting was chaired by John Emery Junior, CEO of Emery Airfreight, In 1989, Emery was acquired by Consolidated Freightways. John invited me to the meeting and TIACA (yet to be named) later held their first ACF in Vancouver in 1992. The event was an organisational and financial success. The next was an even bigger success, held at Miami’s famous Fontainbleu Hotel. The chairman at the time, Walter Johnson, and honorary secretary Garth Davies, decided to move the accounts off shore and at the same time hold a planning meeting in Grand Cayman. I was one of around 50 attendees. Walter and Garth have since passed away.

This is where early plans for TIACA were formulated but not with everyone’s agreement. One of those was Robert Arendal with previous knowledge from the SAE and later to become a Hall of Fame member of TIACA. He was asked to give his ideas in writing at the next meeting and later flew from his office in Luxembourg to meet with me in London and to seek my views. Robert then handed a written presentation at the next meeting in Miami. His notes were never to be heard of again.

It has taken 27 years for the management of TIACA to realise their job is to attract members, rather than organise the ACF. Now Steven Polmans is leading his executive down the right road. Polmans says: “If you stay in the same location, with the ACF, you build up a reputation and buying power. The event will be organised in conjunction with Messe Munchuen, they already hold an excellent history in this field. “The ACF will be held in one location, but the Executive Summit will move around, with the first one being held in Budapest, Hungary to show TIACA is still a global organisation.” Now that Polmans has placed TIACA back on the right track, the next step is to attract more members. The biggest sector of the air cargo business is airfreight forwarding. It is interesting to note the multinational freight forwarders only have offices in major cities and rely on smaller local agents to give the widest coverage. Fully aware of this is the WCA Family of Logistic Networks with 7,219 members covering 119 countries. Polmans has taken an excellent lead for TIACA and the next step is to offer more networking opportunities to win more members, with regular promotion. I look forward to hearing of further new steps through my copies of Air Cargo Week and will now return to the gardening.

RAY Crane’s 46-year publishing career has included 10 years with leading Sunday national newspapers The Observer and The Sunday Times. He was a lecturer for several years at Cranfield College of Aeronautics. His first cargo role was as publisher of the monthly magazine Airtrade. He launched Air Cargo News in 1983 and sold his interest in July 2011. The former chief executive remains a major shareholder of Air Cargo Media. He is also a former board member and trustee of TIACA.

TUI airways pilot completes Red Arrows 2019 team

UI Airways pilot Mike Bowden, who joined the airline last year, has returned to the UK’s RAF (Royal Air Force) Red Arrows display team this summer to perform in aerobatic displays for one last time. TUI released Bowden from his flying duties to step in for ‘Red 3’, who was injured ahead of the season. Bowden, 38, joined the RAF in 2002 and undertook various flying duties including four seasons with the Red Arrows. He flew for the RAF for the final time in October 2018, and then joined TUI Airways as a First Officer. Without Bowden stepping in as ‘Red 3’, the Red Arrows would have struggled to train a new pilot in time for its busy itinerary of aerobatic

displays. Luckily, Bowden only required a few hours of training. This is the first time an airline has released a pilot to re-join the Red Arrows team. Squadron Leader Bowden said: ““Although it is an unexpected return to the Red Arrows, it is always a privilege to represent the UK at home and overseas with aerobatic shows that demonstrate the best of British. “I believe aviation is a shared, common language and the teamwork involved can help inspire people of all ages and backgrounds. “I’m extremely grateful to all those colleagues at TUI Airways who have been so supportive and allowed my temporary return to the Red Arrows for the 2019 display season.”

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