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The weekly newspaper for air cargo professionals No. 1,108

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23 November 2020

Glyn Hughes: Reliving 60 secs of summer

GLYN’S THE MAN FOR TIACA’S FUTURE

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lyn Hughes is to take on the newly-created role of director general of The International Air Cargo Association (TIACA). Hughes is set to start his tenure in February 2021. He will manage the team, work with the board of directors, members and industry partners to establish and implement TIACA’s vision and objectives and advance the cargo agenda. “Over the past year TIACA has fundamentally transformed itself which will enable the association to serve its current members better with greater relevance and attract new ones. I fully support TIACA’s new direction and its unique position to unite and represent the entire airfreight industry. I will be honoured to work with such an engaged board of directors, the team and the members to implement TIACA’s new vision and mission,” stated Hughes. “Our industry is and will be facing challenging times ahead and I am determined and excited to contribute to making it stronger and to work with all to lead this industry towards a more efficient and sustainable future.” Hughes brings over 36 years’ of industry experience including leadership roles in air cargo, passenger, financial, training and industry affairs. Before joining TIACA, Hughes led a

team of cargo experts at IATA as its global head of cargo. “Although the COVID-19 crisis has brought a spotlight on air cargo working hard to deliver essential medicine and supplies fast and safely, despite the global lockdown the pandemic has

resilient. I am convinced TIACA is in an ideal position to bring all the industry stakeholders together, including air cargo businesses, governments, shippers and global organisations to enable this change. “I am committed to building bridges

“I am committed to building bridges to tackle the challenges.”

also highlighted the urgent need for air cargo to accelerate its digital and sustainable transformation, to develop collaborative business models and speak with a united voice to come out of this unprecedented crisis more

between industry players to tackle the challenges and helping the industry get ready for the transportation of COVID19 vaccines which will be one of my first priorities at TIACA,” commented Hughes.

Hughes has been a strong proponent of innovation and sustainability of air cargo, driving change with initiatives supporting the emerging air cargo talent, cargo modernisation and transformation and recognising initiatives driving positive change in the industry through annual awards. Steven Polmans, chair of TIACA’s board of directors, said: “Glyn is a charismatic and a highly respected leader who has an unparalleled track record over the past three decades of driving change in the air cargo industry and promoting its value to governments, partners and across the aviation industry. “We were looking for an exceptional individual, passionate about the air cargo industry and committed to making a long-lasting impact. Glyn is exactly the leader we needed. I am thrilled to have Glyn on-board and look forward to working with him in the years to come to realise the potential of the newly transformed TIACA in supporting, leading and uniting the entire air cargo industry.” Hughes will report to TIACA’s board of directors and will take over the leading role from Céline Hourcade, appointed last May by the board to drive TIACA’s transformation and manage the association in the interim.

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INSIDE TELEPORT PARTNERS CAINIAO

Teleport, the logistics tech venture of AirAsia, has partnered with Cainiao, the logistics arm of Alibaba to deliver cross-border orders ... PAGE 2

IAG CARGO SWEETENS DIWALI

IAG Cargo, the cargo division of the International Airline Group (IAG), surprised a family in London with traditional homemade Diwali treats. ... PAGE 2 HISTORIC TRADE DEAL CREATES RCEP

NOVEMBER 15 marked the creation of the Regional Comprehensive Economic Partnership (RCEP). It was signed between the ... PAGE 4

SIA APPOINTS IBS SOFTWARE

SINGAPORE Airlines (SIA) has appointed IBS Software to bring its global cargo operations onto a single integrated digital cargo platform ... PAGE 8

Follow Us:

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Millions of e-Commerce parcels into the United States set to S be rejected

everal hundred million mail parcels destined for the United States will be rejected when the requirement for a higher threshold of advance electronic data comes into force on January 1, 2021. Posts have had it confirmed that as of that date any parcels arriving in the US with incorrect or incomplete data will be refused and returned to origin. Hurricane Commerce, a specialist in cross-border eCommerce trade data and compliance technology, says the United States Postal Service (USPS) deadline leaves posts with a huge challenge to meet in just a few weeks. The January 1 deadline marks the latest step in the enforcement of the US STOP Act which is primarily intended to crack down on the importation of illicit opioids into the country. Martyn Noble, CEO of Hurricane Commerce, (left) said: “The USPS is under pressure to fully implement the STOP Act and posts have been informed that the quality threshold for valid advance electronic data on mail parcels is being raised to a whole new level from the start of next year.

ACW 23 NOVEMBER 2020

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“From January 1, posts will be expected without exception to provide complete and valid data on all inbound mail parcels into the US. “As things stand that means several hundred million parcels are likely to be rejected and eventually returned to their origin. “This kind of volume will not only create immense logistical challenges but will also have a serious impact on air cargo capacity.

Refused parcels

“Refused parcels will be returned to their country of origin which, in turn, will lead to mail parcel blockages of tens of millions of items. “This problem will be exacerbated by the huge reduction in the number of planes flying due to COVID-19. “The cost implications are significant in terms of warehousing, storage and returns, while there is also the issue of customer dissatisfaction and the increase in carbon footprint.” Earlier this year, Hurricane Commerce launched its easy to integrate Zephyr data

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enhancement product which allows bulk clearance facilities to check the accuracy of data including product descriptions and HS6 codes, and receive additional pertinent or missing information all under a single quick check function. Zephyr can process over 700 million requests a day and can provide, on an item by item API call base, for a real time feedback with response times of 100 milliseconds. The screening of a file consisting of a maximum of 10,000 items that is sent to Hurricane takes no more than 15 minutes. David Spottiswood, a co-founder of Hurricane Commerce, said: “The USPS deadline is real and is just a few weeks away from being rigorously enforced. “Our Zephyr solution has been created specifically to meet this challenge and can be activated and delivering enhanced data quickly. “We know from customer results that Zephyr enables posts to achieve the required data quality threshold. “Posts which are able to meet the rigorous higher standards being set by the USPS are likely to gain a competitive edge in the world of cross-border trade.”


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Willis Towers Watson and Airport Operators Association (AOA) partner on leading airport conference to focus on issues facing the industry

GOVERNMENT SUPPORT AND PANDEMIC RESILIENCE ARE TOP PRIORITIES FOR AIRPORT SECTOR

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he AOA Annual conference held in partnership with Willis Towers Watson (WLTW), a leading global advisory, broking and solutions company, provided the aviation industry with a timely forum to present their strong and unified voice in the current challenging times. With high profile speakers such as the United Kingdom secretary of state for transport, The Rt Hon Grant Shapps MP and Shadow Transport Minister, Jim McMahon MP, alongside industry leaders, including CEOs from a wide number of airports, the conference focused on the aviation sector and the UK government’s response to COVID and the sector’s role in powering the UK economy whilst the industry commits to delivering a sustain-

able aviation sector for a net zero world. With airports in the UK facing an approximate £83m loss per week and not expected to fully recover until 2024/25, the conference highlighted the urgent need for a customised government strategy to support the industry’s survival post-COVID-19, alongside the sector’s opportunity to build back better and greener, as the UK’s aviation industry pioneers the path to decarbonisation. Karen Larbey, director of strategy and planning, transportation industry, Willis Towers Watson, said “We were delighted to partner with the AOA to deliver their annual conference. In such a challenging business environment, it is essential to work together in a spirit of true collaboration, across the

aviation ecosystem. Our Airport Risk Community brings together airports and industry stakeholders to discuss how best to tackle the major risks such as the current COVID-19 pandemic and climate risk, which are having a significant impact on airport resilience. Our ongoing partnership with the AOA, as well as our growing Airport Risk Community ensures we can provide a collaborative and critical business platform to discuss the current and emerging risks that threaten the aviation industry’s future growth.” Karen Dee, chief executive, Airport Operators Association, said “2020 has been an enormously challenging year for UK airports: passenger numbers suffered a dramatic decline because of lockdown and then quar-

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antine measures and, of course, revenues followed suit. In such circumstances AOA felt it was essential to bring the sector together both to share experiences and to plan a pathway to recovery. We were delighted that, with the support of our corporate partner, Willis Towers Watson, we were able to provide such a great line up of speakers and reach so many of our members. We look forward to continuing this important partnership.” The event was attended by well over 500 delegates from the Willis Towers Watson Airport Risk community as well as members of the Airport Operators Association and is part of Willis Towers Watson’s continuing and ongoing strategy to bring global connectivity to the airport sector.

ACW 23 NOVEMBER 2020


NEWS Kerry Logistics wins ‘Air Business Operator of the Year’ KERRY Logistics Network Limited was awarded the title ‘Air Business Operator of the Year’ at the 2020 Logistics UK Awards that was held in an online event on November 13. The Hong Kong-headquartered freight forwarder met the judge’s criteria that included demonstrations of industry leadership, customer care, operational efficiency, and industry innovation. The annual awards event is organised by United Kingdom-based industry representative group Logistics UK to support and celebrate businesses and developments in supply chain logistics.

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Teleport partners with Cainiao

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eleport, the logistics tech venture of AirAsia, has partnered with Cainiao, the logistics arm of Alibaba to deliver cross-border orders made on Tmall Taobao, Alibaba’s e-Commerce platform. The partnership will initially start from Shenzhen and Canton in China to Kota Kinabalu, Sabah; the main hub in East Malaysia. Through this partnership with Cainiao, Teleport will provide end-to-end delivery in under 24 hours. “Teleport having worked closely with Cainiao previously for chartered cargo-only flights, it only seems fitting to continue this as a long-term partnership to deliver parcels across China to East Malaysia,” commented Pete Chareonwongsak, CEO of Teleport. “By tapping into Teleport’s robust

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technology integration between the two platforms and AirAsia’s regional network, we can enable e-commerce delivery across Southeast Asia from multiple cities in China.” Kenny Wu, director for Tmall Export Line Haul Logistics at Cainiao added: “The establishment of a direct Malaysia-China e-Commerce logistics service is a continued affirmation of our investment into the region. With the rise in e-Commerce and cross-border trade activities, delivery efficiency will become increasingly crucial for business success and the growth of economies. “This partnership with Teleport will help streamline customs clearance and improve freight stability as we continue to work towards our goal of delivering globally within 72 hours.”

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IAG Cargo sweetens Diwali for UK family

IAG Cargo, the cargo division of the International Airline Group (IAG), surprised a family in London with traditional home-made Diwali treats directly from their Delhi-based family. IAG Cargo decided to help Ashish Asaf from SA Group, a customer based in India, when it became aware that he would be unable to spend Diwali with his family due to work commitments and COVID-19 restrictions. To help bring the family together at this special time, the IAG Cargo team arranged for a box of home-made traditional sweets to be transported from Delhi to his children in London. Ankush Chawla, area commercial manager for South Asia at IAG Cargo commented: “When we heard that Mr Asaf was unable to be with his family during Diwali we were pleased to be able to make a special delivery via one of our flights to London from Delhi, just in time for Diwali.”

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An-124-100’s emergency landing in Novosibirsk

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HISTORIC TRADE DEAL CREATES RCEP

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n Antonov AN-124-100 freighter

aircraft belonging to Volga-Dnepr Airlines has made an emergency landing in Tolmachevo airport at Novosibirsk, Russia. The captain took the decision to return to the departure airport because of technical issues soon after take-off. The aircraft rolled off the runway upon landing. No crew members were reported injured in the incident. The aircraft was operating a charter flight from Seoul, South Korea to Vienna, Austria with a technical stop in Novosibirsk, Russia. It was carrying 84 tonness of automotive spare parts. The airlines’ technical support crew with essential equipment immediately flew to Novosibirsk to evaluate and rectify any consequences. “After the emergency landing, all crew members were examined by medical personnel and most importantly none were injured. At the moment we are co-operating with the aviation authorities and Novosibirsk airport with respect to this event and will thoroughly analyse the situation accordingly,” commented Igor Aksenov, general director of Volga-Dnepr Airlines.

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NOVEMBER 15 marked the creation of the Regional Comprehensive Economic Partnership (RCEP). It was signed between the Asia-Pacific nations of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, combining the countries into a single multilateral pact with Australia, China, Japan, New Zealand and South Korea. China’s premier Li Keqiang described the agreement as “a victory of multilateralism and free trade,” according to a report from the official Xinhua news agency. The RCEP has the usual aspects of a free trade deal: tariffs, customs administration, sanitary measures, services and investment. However the most important aspect of the RCEP, the part that makes the deal so significant, is that it ensures when a product is manufactured within the deal it will be available in all 15

countries. This is a huge step for China, South Korea and Japan as the RCEP marked the first free trade deal between all three countries. The Financial Times stated that this is a step towards the region becoming a coherent trading zone like North America and the EU and it is reported that that the monumental trade deal could add $200 billion to the global economy by 2030.

Chinese imports The agreement has been eight years in negotiation with India notably pulling out in 2019 over fears the country would be flooded with cheaper Chinese imports. With India no longer involved in the deal, many critics worry China, as the nation arguably with the most weight, may dominate the treaty. As for the USA, the Financial Times writes

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that the US now sits outside both the main trading groups in Asia after President Trump withdrew from the TPP. That means neither the EU nor the US, the world’s traditional trade superpowers, will have any voice when Asia sets its trading rules. Trade experts predict that Japan and South Korea may be the countries that benefit most from the deal but the effects will be felt across the globe as cheaper goods will be available. “We signed [RCEP] today, after a tough slog of eight years,” said Lee Hsien Loong, Singapore’s prime minister, as reported in the Financial Times. “This is a major step forward for our region. At a time when multilateralism is losing ground and global growth is slowing, the RCEP shows Asian countries’ support for open and connected supply chains, freer trade and closer interdependence.”

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AFKLMP Cargo ready for COVID-19 vaccines AIR France KLM Martinair Cargo have been making every effort to keep vital supply chains in place amidst the pandemic. Approximately 6,000 cargo-only flights have been carried out in recent months. The next logistical challenge will be the global distribution of the COVID-19 vaccines. The American pharmaceutical giant Pfizer, together with German partner BioNTech, announced great success in the first interim analysis from the Phase III study of its COVID-19 vaccine candidate. This will be an unprecedented logistical challenge for the industry, due to the volume of cargo and the temperature and time sensitive nature of the shipments. Initial expectations are that around 15 billion vaccines will need to be distributed worldwide.

associates, pharmaceutical companies and healthcare-related institutes and authorities. We believe that strong co-operation between partners will be essential to successfully executing this logistical challenge. In recent weeks, we successfully shipped

NEWS

the first COVID-19 vaccines. Air France KLM Martinair Cargo is ready for this logistical challenge, ready to deliver coronavirus vaccines to the Netherlands, to France and to many other countries around the globe.”

Specific challenges “Air France KLM Martinair Cargo has years of experience with temperature-controlled transportation of pharmaceuticals and was the first airline group to be CEIV certified by IATA,” explains GertJan Roelands, senior vice president sales and distribution Air France KLM Martinair Cargo. “The distribution of COVID19 vaccines poses specific challenges in terms of volume, transportation requirements and security. In order to be fully prepared for this we started a COVID-19 vaccine taskforce four months ago. This taskforce represents all the relevant Air France KLM Martinair Cargo departments. Our teams have been working on an extensive action plan. For example, at our Schiphol Pharma Hub, we opened up a 1,118 sq m climate controlled storage facility a few months ago and we are building an additional 2,061 sq m additional cool room. “At our Charles de Gaulle Pharma Hub, a new climate controlled storage area is about to be finished. We also introduced Hybrid and Advanced Passive Solutions that will be used to transport the vaccines, on top of existing full range of active containers. Along with many other initiatives, extra monitoring and intervention management have also been implemented.”

Established partnerships Adriaan den Heijer, executive vice president Air France-KLM Cargo added: “We believe that co-operation and building communities around the upcoming global vaccines distribution are essential. We’ve established partnerships with many of the parties in the logistical chain, including forwarders, trucking companies, container providers, airports, cargo/logistical

Emirates SkyCargo introduces A380 ‘mini-freighter’ charter operations EMIRATES SkyCargo has started utilising its Airbus A380 aircraft on select cargo charter operations to transport urgently required cargo across its network. The first dedicated Emirates A380 ‘mini-freighter’ successfully transported medical supplies between Seoul and Amsterdam via Dubai. Working with the Engineering and Flight Operations teams within Emirates, the

air cargo carrier has optimised the cargo capacity of the A380 to safely transport around 50 tonnes of cargo per flight in the bellyhold of the aircraft. Emirates SkyCargo has introduced dedicated cargo operations on the A380 aircraft in response to the surge in the demand for capacity required for the urgent transportation of critical goods, including medical supplies.

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TIACA thowback

In August 2018, Air Cargo Week asked Gyn Hughes the questions the other trade media were afraid to ask ...

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KULR Technology Group partners with Airbus to provide battery safety solutions KULR Technology Group is to partner with Airbus Defense and Space to provide KULR’s passive propagation resistant (PPR) battery design solutions for ongoing research into lithium-ion battery testing and safety for flight applications. Electrical engineers at Airbus undertake research and develop safe battery solutions for defence, space, helicopter and aircraft applications. KULR’s PPR design combines HYDRA Thermal Runaway Shield (TRS), LYRA internal short circuit and NASA’s Fractional Thermal Runaway Calorimeter cell analysis technologies to provide an integrated total solution for battery testing and safety. HYDRA TRS is a sleeve-like shield that surrounds and separates individual cells in multi-cell packs and contains carbon fibrecore and liquid coolant. The unique combination and configuration of the shield passively draws intense heat of cell failures away from nearby cells while dousing the failed area in a cooling and fire-prevention liquid. Though weight and volume of thermal management solutions are the most critical constraints in flight applications, KULR carbon fibre architecture offers superior mass and weight advantages. “We are excited to work with Airbus to refine and enhance its battery safety research, an agreement that further demonstrates our commitment to battery safety in consumer and commercial applications,” said Michael Mo, CEO of KULR. “We believe our TRS technology can provide a lightweight and effective solution to mitigate thermal runaway propagation risk for Airbus’ high-performance batteries.” KULR’s HYDRA TRS is proven by various government testing authorities to stop or mitigate the impacts of dangerous lithium-ion battery failures known as thermal runaway propagation. Last year, Leidos and NASA used KULR’s HYDRA TRS technology to safely ship to and store batteries aboard the International Space Station. In addition, NASA’s Marshall Space Flight Center (MSFC) recently awarded KULR a dual-use technology development agreement to build 3D printed battery systems for manned and robotic space applications.

include many widely used commodities and products. Gasoline and other petroleum products are estimated to account for a significant share while lithium batteries seem to have carved out their own regulatory landscape. The transporting of hazardous materials requires special precautions, handling and packaging. There are specialised safety regulations, standards and reporting systems in place for aircraft that transport hazardous materials. These special requirements recognise the incidents involved in the transportation of hazardous materials, which can affect the environment, in addition to the potential risks of injuries and deaths.

PRBA Challenge The Rechargeable Battery Association (PRBA) challenged the US National Transportation Safety Board’s recommendations that

would ban shipments by air of prototype lithium batteries. In a letter to the US Department of Transportation’s (DOT) Pipeline and Hazardous Materials Safety Administration, PRBA warned that implementation of the NTSB’s recommendations would prevent its members from operating globally and “endanger the safety of medical patients” who depend on lithium batteries to power life-saving medical devices such as ventilators. Likewise, the NTSB’s recommendations “would jeopardise the ability of the United States military” to protect combat soldiers using equipment powered by lithium batteries. The PRBA solution was that rather than banning air shipments of prototype lithium batteries, PRBA encouraged DOT to share with international dangerous goods aviation authorities its regulatory and technical expertise on issuing lithium battery special permits and approvals that the department has acquired over the past 30 years.

Steady growth The global hazardous goods transportation market is estimated to witness steady growth from 2020 to 2025 and the US hazardous goods logistics market is estimated to witness a steady growth over the same forecast period due to the presence of robust infrastructure and growing oil trade in the United States. The presence of industry leaders in the US hazardous goods logistics market provided a thrust to the market movement. Hazardous materials make up a significant portion of the global freight, because they

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B&H Worldwide and OnLogistics create alliance B&H Worldwide, the aerospace logistics provider and OnLogistics, a leading supply chain integrator, have joined forces to provide a unique integrated supply chain management solution enabling aerospace businesses to prioritise and focus on their core activity. UK-headquartered OnLogistics services includes contract packing, packaging design and supply, distribution and storage incorporating kitting and direct line feed. B&H’s expertise in delivering freight solutions across the aerospace industry means it can serve customers through the use of its innovative, in-house designed IT solutions. Its custom-designed FirstTrac software sets a benchmark for aerospace logistics. “By creating this alliance with OnLogistics we are cementing our position in the aerospace industry as specialists committed to customers who operate within this challenging and time-sensitive vertical market.” says

B&H Worldwide’s group managing director, Gary Wilson. “In this collaboration of expertise we aim to serve the aerospace sector with a seamless supply chain solution embracing inventory management, warehousing and international distribution”.

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New venture Adds OnLogistics managing director, Nick Bennett: “Establishing this new venture with B&H Worldwide is a strategic alliance that will combine the strengths of OnLogistics’ warehousing and on-site service solutions plus B&H Worldwide’s global forwarding strength. “The landscape of aerospace logistics has changed, we must therefore rely on our mutual strengths to deliver an agile and cost-effective service. Our aim is to provide global solutions from a network of local expertise.”

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ingapore Airlines (SIA) has appointed IBS Software to bring its global cargo operations onto a single integrated digital cargo platform to improve operational insight across its entire network. This will be achieved through the deployment of IBS Software’s iCargo SaaS-based cargo management solution. The implementation will see SIA transitioning from its existing air cargo systems to iCargo to support its cargo business units, which include sales, import and export operations, air mail handling and revenue accounting. This will strengthen its ability to manage cargo capacity, gain enhanced visibility of shipment yields and revenues, optimise network performance and seamlessly collaborate with partners’ systems as well as drive efficiencies and improve operational resilience. “The COVID-19 pandemic has challenged the air cargo industry and greatly accelerated the need for change, especially in digitalisation. “We look forward to working closely with IBS Software to leverage the many strengths of iCargo to improve our digital capabilities and allow us to deliver a differentiated customer-centric quality of service, while staying compliant and up-to-date with global industry standards and initiatives,” said Chin Yau Seng, senior vice president cargo, Singapore Airlines.

AIRFREIGHT volumes at Leipzig/Halle Airport (LEJ) are continuing to grow at double-digit rates. Europe’s fifth-largest cargo airport set a new record for airfreight volumes in October. Relative to the same month in the previous year, freight volumes increased by 10.9% to a figure of 124,881 tonnes. The number of cargo flights increased by

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Singapore Airlines appoints IBS Software with iCargo for global cargo operations

“Singapore Airlines is an iconic brand in the airline industry, synonymous with innovation. It gives us immense pleasure to welcome them to the iCargo user community during these turbulent times. We greatly value the trust that Singapore Airlines has placed with us and I’m looking forward to our teams jointly developing the next generation of air cargo ecosystem for their customers and partners,” said Gautam Shekar, senior vice president and regional head of Asia Pacific, IBS Software. iCargo is an integrated solution that supports the end-to-end business functions such as cargo reservations, rating, manifesting, import and export operations, warehouse management, revenue accounting, air mail handling and revenue management of cargo-carrying airlines and ground handling service providers. iCargo follows air cargo industry best practices and is fully compliant with global industry standards and initiatives such as Cargo iQ, C-XML, OneRecord, e-AWB and e-Freight in general. iCargo is deployed globally with some of the world’s leading airlines and ground handling service providers. Over the past 24 months, demand for iCargo has gained significant momentum, including 22 ‘go live’ implementations and eight new customers.

LEJ: record October cargo

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8.7%to 4,501 compared to October in the previous year. This means that air cargo volumes grew by 8.4% to more than 1.11 million tonnes during the first ten months of the year. Managers say air cargo volumes at LEJ are growing far above the average figures and in contrast to the negative trend elsewhere in Germany.

CEVA brought to book in Italy

CEVA Logistics Italia and Emmelibri (Messaggerie Group) have renewed their partnership to provide logistics services until 2033. The contract provides for the launch of a jointly owned business named C&M Book Logistics - aimed at developing an innovative book logistics and distribution centre in Italy through the project. CEVA Logistics and Emmelibri have been collaborating since the 1990s, and since 2013 CEVA has been in charge of the physical handling of products.

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CCLP GOES DIGITAL

THE Cargo Claims Platform, developed by Amsterdam-based CargoHubBV, has brought dealing with cargo claims and loss preventions (CCLP) into the 21st century. The IATA Cargo Innovation Awarded platform has modernised air cargo supply chain visibility and efficiency by allowing shipper and forwarder clients to submit claims to any carrier on a single platform accessible 24/7. “Our forward-thinking airline customers are pursuing a variety of new technologies to improve the quality of the air cargo product and their services. As the ground operation plays a crucial role in loss prevention management for airlines, we have added an integrated digital loss prevention solution for ground handlers simplifying the incident reporting process to airlines. This enables airlines to undertake immediate services recovery actions and to automatically update potential claim records. Our mission is to standardise and simplify the cargo claims process enabling our customers to reduce operational costs and to increase the quality of their services. We always offer a free of charge quick scan to identify opportunities for improvements to any potential new members who are interested to join our mission,” Raoul Paul, CEO of CargoHub explains. Saudia Cargo was the first Cargo Claims customer. “The platform enabled Saudia Cargo to speed up the process which resulted in a reduced claim recovery cycle of 25% and supports the digital transfor-

mation and standardisation on Cargo Claims and loss prevention within the industry,” noted Salem Alguthmi, director of customer excellence at Saudia Cargo.

MENZIES Aviation, the Scottish global aviation logistics specialist, has won a ground handling and cleaning contract with Scotland’s national carrier, Loganair, at both Glasgow and Edinburgh airports. From November 15 Menzies will deliver handling and cleaning services for 14,000 Loganair flights per year across the two stations, with 6,500 and 7,500 turns anticipated per annum at Edinburgh and Glasgow respectively. This contract, which has an initial term of three years, sees the expansion of

Menzies’ relationship with Loganair, with Menzies already providing de-icing services to the airline at Edinburgh and Glasgow, as well as de-icing, cleaning and ground handling services at Manchester and Isle of Man. Phil Lloyd, Menzies Aviation vice president, north UK and Ireland, commented: “As Scotland’s national ground handling company, we’re delighted to be deepening our relationship with Scotland’s national carrier. This award is testament to the successful partnership we have built.”

Quality of service For AirBridgeCargo, improving the quality of service and reducing the claim handling time are also the main benefits. Marina Verbykh, claims handling manager, reports: “The system is useful for all parties in the claims process and allows storage and access of all information and documents, enabling tracking history of the claims for both airlines and claimants. The company uses the system throughout the network, which allows us to unify the process of considering claims in accordance with IATA standards. It allows us to significantly reduce time for consideration of claims and claimants have access to the claims registration system and contract status.” Dave Suhajda claims administrator of Polar Air Cargo and Atlas Air adds: “We are also able to use the data to create specialised reports with respect to customers, origins, destinations, commodities and keep track of our claim handling performance. “The platform enables us to instantly determine our financial exposure based on the weight involved in the claim and automatically calculates all claims into dollars.” Complications caused by the pandemic have proved the value of digitalisation, notes Paul.

EUROPEAN AIR CARGO Royal Schiphol Group takes full ownership of Cargonaut ROYAL Schiphol Group has announced their acquisition of additional shares in Cargonaut B.V, meaning it now has full ownership. Schiphol are looking to the future with ambitious plans to modernise the information provider and renew Cargonaut’s Port Community System (PCS) to ‘futureproof’ it for the cargo community. “With the new system that Cargonaut and Schiphol Group are building we will be ready for the future and able to further innovate and exchange information,” commented Jonas van Stekelenburg, interim chief executive officer at Cargonaut. “We are replacing the current deprecated system, but we are also improving it: the new PCS will make it easier for cargo parties to communicate with one

another, as well as with the Government. Moreover, it will enable the sector to handle the expected increase in e-commerce clearances.” The move will also strengthen the airport cargo community’s relationship with Dutch Customs, which under the Dutch Government’s Digital Transport Strategy, is seeking to work more closely with com-

panies such as Schiphol who fulfil a public Mainport function. “The cargo community will benefit from this transition, it will make the supply chain more predictable and it will strengthen Schiphol’s competitive advantage,” said Miriam Hoekstra –van der Deen, head of airport operations. Sjoerd Blűm, chief information officer and director IT and Data at Schiphol added: “Proper data sharing ensures smooth cargo handling, from which efficiency in the chain will increase. We will be inviting community members to share their vision regarding their future needs and functionalities for the system and we will keep sharing important milestones as the project progresses.“

Menzies Aviation awarded 3-year Loganair contract

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ATC prepared for the global VOLKER Dunkake and Thomas Baumert, based in the Frankfurt head office of ATC Aviation Services, are heading the ATC Aviation global COVID-19 vaccine task force. The task force has been preparing solutions for the global vaccine distribution and has been preparing for every eventuality. “The total quantity [of vaccines] that is expected to be transported by air cannot be clearly predicted,” ATC explains to ACW. “The total number varies between eight and 24 billion doses needed to vaccinate the world’s population. The task is to identify when and where the vaccines will be ready and for whom they have been produced.” With global air cargo capacity down as a result of the pandemic, the industry will have to be mo-

bilised on a scale not seen before to cope with the sheer quantity of vaccine shipments. ATC describes this as “most probably the biggest challenge for the movement of humanitarian relief goods we have ever seen.” The taskforce is co-ordinating the worldwide pharma activities in the ATC global organisation. On regional levels the country managers and their pharma experts on site are responsible for local contacts and implementation of the solutions.

Ordering and distributing “Governments are expected to be in the lead for ordering and distributing the vaccines to their people,” ATC explains. “Hence they will set priorities for their national carriers to free up capacities

for the vaccine campaign and commercial cargo will have to stand by. This being said, overall the capacity currently operating will most probably not be sufficient and there will be a shortage. We do expect passenger aircrafts to be mobilized and to add capacities needed for this campaign.” The time and temperature sensitive nature of the shipments add another layer of difficulty to the operations. “Managing the cool chain as well as the security aspects of these movements will be an enormous challenge. The task is to get as much information as possible in time in order to be well prepared in advance,” commented ATC. As for preparations to infrastructure, the taskforce acknowledge that advancements can only be made when “further details are revealed, like temperature requirements,

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routes to be served and daily export volumes to be expected and for what kind of period.” Baumert added: “We need to focus on a speedy temperature controlled transport to get these goods to destination in line with GDP requirements. In cooperation with our airlines and the stakeholders, like shipper/GHA/Trucker we define the specific requirements to set all standards in order to be ready at the right time.” Dunkake commented: “With an integrated cooperation of all stakeholders solutions for this challenging distribution campaign can be developed. That’s what we are working on.” Ingo Zimmer, group CEO ATC Aviation Services stated: “We are well aware of the importance of our role in the supply chain of the vaccines and we are ready!”

Europe post-COVID TO mark Global Webinar Day 2020, transport logistics exhibitions, hosted by Messe München, delivered a series of informative webinars addressing some of the questions looming over the global transport and logistics industry this year. The webinars discussed relevant topics in China, Turkey, India, Africa, USA and Europe. ACW tuned in to ‘Europe- A Six Month Outlook- how are economy and supply chains developing?’ Speakers included Prof Dr Dennis Ostwald chief executive officer and head of health economics at WiFOR, Prof Jan Fransoo, operations and logistics management at Tilburg University’s School of Economics and Management and Felix Herzog, associate partner aerospace OEMs and suppliers at Porsche Consulting. The message of the webinar was clear. A key lesson to take from 2020 is that it is imperative to have a strong transport and logistics sector to cope with a fast changing world. This is not only from a logistics viewpoint but also from the need for strong transport connections to efficiently transport COVID-19 vaccines. According to data collated in Otswold’s presentation, COVID-19 containment measures are likely to put the global economy in the worst recession since the Great Depression in the 1930s. The direct global GDP contribution of the transport industry was 16% of worldwide GDP in 2017, therefore it is important to recognise how instrumental the industry will be in the global econom-

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ic recovery. Jan Fransoo pointed out that the industry will recover with time but supply chain recovery will be especially bumpy. With a huge surplus of inventory, businesses stopped ordering to manage stock and therefore the supply chain and transportation sector has taken the brunt. Sharp increase in demand then occurs when stock is ordered again. Fransoo describes this as supply chains being ‘out of sync’. He advised that inventory management is key. Speaking specifically of aerospace and aviation, Felix Herzog discussed the predicted recovery time for the industry. COVID-19 has had the strongest impact on the air industry, more so than 9/11, which had 12 months recovery time. It is predicted that industry recovery from COVID-19 will be between 24 and 36 months with factors including GDP, passenger confidence and travel restrictions affecting this figure the most. Herzog commented on the longer recovery time for aircraft OEM and suppliers. With little drive in the industry to buy new aircraft, these sectors are facing immediate impact with even longer duration expected. Aerospace supply chains now have to prove resiliance on top of the remaining cost pressure. With that being said, there is optimism in all this. Passenger confidence in the aviation industry has faltered little throughout the year and with the hope of a vaccine on the horizon, economies are starting to look up.


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Thomas Baumert

Volker Dunkake

UKWA:Pandemic has distracted firms from Brexit preparations IN a survey conducted on members of the UK Warehousing Association (UKWA), it was found that 88% of respondents stated that they do not believe their customers are prepared for the impact of UK’s transition from the EU on January 1 2021. While 78% of UKWA members said that they were aware of the Border Operating Model, only 40% felt that they were prepared. These staggering figures are in line with the UK’s National Audit Office’s (NAO) report that reported on widespread disruption ahead in regard to Brexit border complications. “The intermediaries – namely those operating in the logistics industry – have been kept well informed and in many cases have helped shape the Border Operating Model via their Trade Associations,” Peter Ward, UKWA CEO, said. “However, traders themselves have not received clear or detailed communication from the government on what to prepare for or how to prepare for it.” Complications along the supply chain caused by the pandemic have distracted many businesses from focussing on combating the inevitable supply chain disruption caused by some 200 million additional customs declarations being required after January 1. “A degree of apathy has settled in after three Brexit deadlines have come and gone, with companies stockpiling each time in preparation for supply chain interruption at some considerable cost,” Ward explained. “There is also a widespread sense, fed by the national media, that all will be ‘alright on the night’ if we can just secure a Free Trade Agreement. Our message is – and has been for some time - that deal or no deal, traders in the UK will be in a new operating environment from January 1 regardless. We will be out of the Customs Union and therefore the government’s agreed future Brexit Border Operating Model will be in place,

along with new procedures and new IT systems, many of which remain untested. What it will not be, even if we secure a Free Trade Agreement, is ‘business as usual.” Adding the complications, the UKWA survey found that there is less than 3% available warehouse capacity nationwide. This equates to approximately 360,000 pallets, which is insufficient as this aggregate is composed of small lot sizes of 100-200 across some 3000 locations nationwide. With flows continuing into UK from the Far East and elsewhere, whilst non-essential retail outlets are closed again under the new COVID-19 restrictions, UKWA believes the situation will quickly become critical.

Impending crisis “UKWA warned of an impending crisis of warehousing shortages earlier in the year, but this was mitigated as the economy opened up again,” Ward commented. “However, now we are into peak season and the pressures on space have increased. “As far as Brexit is concerned, we anticipate a small increase in availability of around 1% post peak, with a paltry 120,000 becoming pallets available going into January.” Ward concludes: “UKWA, along with our peer Trade Associations, have continued to engage with the government, providing feedback from the ‘coal face’ and disseminating vital information to members. “We have also been vocal in warning of the unpreparedness of businesses for the transition from the EU. Whilst we welcome the recognition of these challenges, as outlined in the National Audit Office report, awareness of the threat of unpreparedness has come somewhat late in the day.”

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Profile for Azura International

ACW digital 23rd November 2020  

ACW digital 23rd November 2020