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The weekly newspaper for air cargo professionals No. 1,073

23 March 2020

Is the answer in the rubbish bin?

AF grounds A380s; KLM shelves B747s

ir France KLM has taken the decision to reduce its flight activity significantly, with the number of available seat kilometres (ASK) potentially decreasing between 70% and 90%. This is currently scheduled to last two months. As a result of this reduction in capacity, Air France will ground its entire fleet of 10 Airbus 380 aircraft and KLM its entire Boeing 747 fleet of five aircraft. Measures have been taken to secure cash flow through additional savings measures generating €200 million in 2020 and an initial review of the investment plan to reduce the capital expenditure plan by €350 million, to which will be added the impact of the decline in activity on the amount of maintenance

investments. Air France and KLM will be consulting with their elected employee representatives on measures to take into account the impact of the expected decline in activity, including a project to implement partial activity. In spite of the measures taken, the deterioration of the environment linked to the epidemic and the sharp reduction in its activity that has resulted lead the group to forecast a sharply deteriorated financial trajectory compared to the outlook presented in its annual results. Air France-KLM Group has welcomed statements made by the French and Dutch governments, which have each indicated that they were studying all possible means to support the Group.

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INSIDE OCEAN FREIGHT’S OPPORTUNITY

AS major trade countries like the USA, UK and Germany suspend air travel, cargo movement has slowed. Ocean freight is emerging as a viable ... PAGE 2

BUSINESS AS USUAL

WHILE President Trump’s strict travel restrictions from Europe to the US continue, global perishable cargo specialist PML is still advising that a ... PAGE 3 IBS’S INDUSTRY FIRST

LUFTHANSA Cargo has selected IBS Software’s industry-first ‘zero outage’ SaaS solution to host andmaintain its iCAP cargo handling application ... PAGE 4

FAA proposes $19.68m civil penalty against Boeing

he US Department of Transportation’s FederalAviationAdministration (FAA) has proposed a $19.68 million civil penalty against The Boeing Co. for allegedly installing equipment on hundreds of the company’s 737 aircraft containing sensors

that were not approved for that equipment. The FAA alleges that between June 2015 and April 2019, Boeing installed Rockwell Collins Head-up Guidance Systems on 791 jetliners, including 618 Boeing 737 NGs and 173 Boeing 737 MAX aircraft.

The FAA alleges that the guidance systems in these aircraft were equipped with sensors that had not been tested or approved as being compatible with those guidance systems. The FAA alleges that Boeing violated Federal Aviation Regulations when it certified

these aircraft as airworthy when they were not in conformance with their type certificate. The agency further alleges that Boeing failed to follow its own Business Process Instructions, which are in place to help prevent such situations from occurring.

The manufacturer of the head-up guidance system, Rockwell Collins, subsequently conducted the necessary testing and risk analysis and updated the documents. Boeing was given 30 days to respond to the FAA’s enforcement letter.

TO THE FUTURE, AND BEYOND

THE annual AirCargo conference was held in Nashville across January 26-28 at the Omni Hotel in Nashville, Tennessee. The event, held by the ... PAGE 6

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COVID-19 crisis as it unfolds ... Nordic Air Cargo Symposium and LogiPharma shows postponed THE Nordic Air Cargo Symposium 2020, scheduled for Monday 20 April to Thursday April 23 in Copenhagen has been moved to November 24-25, 2020 at the same venue as originally planned: Radisson Blu Scandinavia, Copenhagen, Denmark. “We realise that due to the current Coronavirus outbreak, many delegates would have problems with travel bans, restrictions, unpredictable quarantine measures and worries about the health situation in general,” said organiser Lars-Gunnar Comén, director, Euroavia International. Meanwhile, the LogiPharma 2020 event, due to have been held in Nice, France from April 21-23, has been postponed until 1 – 3 September 1-3 2020 at the Nice Acropolis, Nice, France. Organisers say: “After careful consideration, we are postponing LogiPharma 2020 as the health, safety and well-being of our attendees, partners and employees is paramount.” NORWEGIAN is to suspend more than 4,000 flights and implement layoffs. Following the US ban on travel from most of Europe and the escalating coronavirus situation, Norwegian decided to ground 40% of its long-haul fleet and cancel up to 25% of its short-haul flights until the end of May. “We encourage the authorities to immediately implement measures to imminently reduce the financial burden on airlines,” said CEO Jacob Schram of Norwegian.

Virgin Atlantic takes drastic action to safeguard survival FROM March 17, Virgin Atlantic has taken drastic measures to safeguard themselves. This will include an 80% reduction in schedule to prioritise core routes based on customer demand. Approximately 75% of Virgin’s fleet will be grounded by March 26, which may increase to 85% at points in April. Airline staff will be asked to take eight weeks unpaid leave over the next three months, with the cost spread over six months’ salary, to

drastically reduce costs without job losses.

CEVA Logistics’ mega airlift to keep supply chains moving

AS part of an initiative to keep customer production lines moving around the world during the coronavirus outbreak, CEVA Logistics has contracted a range of 86 freighter aircraft to deliver parts and supplies for its customers. Operating on behalf of custom-

ers in the automotive, aerospace, computer and hi-tech electronics sectors, the charters are designed to prevent production lines from stopping and to provide urgent stock replenishment for those which could not otherwise be supplied.

CEVA has been able to move more than 4,700 tonnes of airfreight to date. More than 58 flights have already been completed, with an additional 28 to come over the coming seven weeks and many others to follow if necessary.

IATA: Air cargo is essential to fight COVID-19 MORE than “185,000 passenger flights have been cancelled since the end of January in response to travel restrictions. With this, vital cargo capacity has disappeared when it is most urgently needed in the fight against COVID-19. The world’s fleet of freighter aircraft has been mobilised to make up this capacity shortfall. Governments must take urgent measures

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AS major trade countries like the USA, UK and Germany suspend air travel, cargo movement has slowed. Ocean freight transport is emerging as a viable and cost-effective alternative with a wider reach for moving cargo to destinations across the globe, say those with an interest in the mode. ECU Worldwide offers ocean freight services and customised cargo solutions across multiple trade lanes including to and from Europe to USA and Canada. ECU360, the company’s online platform, enables customers to get door-to-door rates and manage cargo transportation across a number of origin and destination points within the USA as well as other countries, along with online freight visibility.

Some 30,000 BA ASM gets jobs at risk

to ensure that vital supply lines remain open, efficient and effective,” said Alexandre de Juniac, IATA’s director general and CEO. IATA air cargo is an essential part of the fight against COVID-19 and air cargo must not be included in any COVID-19-related travel restrictions to ensure life-saving pharma can be transported without disruption; standardised

measures are in place so that air cargo can continue to move around the world with minimal disruptions; air cargo crew members, who do not interact with the public, are exempt from 14-day quarantine requirements; and, remove economic impediments, such as overfly charges, parking fees, and slot restrictions to support air cargo operations.

Airports welcome EC slot waiver EUROPE’S airports welcomed the approach taken by the EC to give airlines an exceptional and time-limited waiver on the airport slot “use-it-or-lose-it” rule until June 30 2020 as a result of the COVID-19 crisis. ACI EUROPE “thanks” Commissioner Vălean for this proposal, which now needs to be swiftly adopted by the European Parliament and EU states. Such a waiver will give airlines certainty that they can suspend routes and cut the capacity they offer without losing their future entitlement to slots they will not be using at congested airports. It is critical that unused slots covered by the waiver are returned by airlines to slot co-ordinators for reallocation in a timely manner – as required by the Commission’s proposal. This will notably facilitate continued air connectivity – including for essential cargo and medical supplies – at a critical time. Any further

Virgin will also offer a one-time voluntary severance package to all employees or a sabbatical of 6-12 months. Other measures to reduce costs include deferring annual pay increases until review in January 2021, reducing employer pension contribution for one year and CEO Shai Weiss reducing his pay by 20%, with the executive leadership team following with a 15% pay reduction until the end of 2020.

Ocean freight sees an opportunity in a crisis

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extension of the waiver beyond June 30 2020 should be based on consultation with the airport industry and slot co-ordinators. Olivier Jankovec, director general of ACI EUROPE said: “By supporting our airline clients in these exceptional circumstances, this time-limited slot waiver is obviously in the long-term interest of airports. “It will especially help those airlines with a significant presence at congested airports mitigate the harsh financial impact of COVID-19 - while also ensuring that they can preserve the integrity of their route network once demand recovers. But, this necessary focus on the longer-term comes with short-term sacrifice for airports. They will be hit by further losses in air traffic and connectivity, especially as Governments in Europe and beyond are now adopting flight bans and restricting international air travel.”

their skates on for post-Brexit systems

BRITISH Airways has taken the unprecedented step of issuing a HR1 consultation notice for redundancies, which could put 30,000 jobs at risk. The GMB Union has demanded that the UK government steps in to bail out the airline and guarantee airline jobs and pay will be protected. Nadine Houghton, GMB’s national officer, said: “BA can’t be given carte blanche to use bail out cash to line the pockets of fat cats. Any state intervention must come with a rock-solid commitment to save the jobs and pay all British Airways workers. We will need skilled aviation workers to reinvigorate the industry when we come out of this crisis.”

Air Partner to encourage advance freight arrangements AMONGST uncertainty around COVID-19, Air Partner is imploring companies to book air cargo transport in advance to secure availability and keep their supply chains moving. “We’re seeing a spike in air freight service requests as many commercial flights are being grounded and at a time when Chinese industrial production is restarting after a month-long shutdown. “There is still immediate charter availability, but we foresee that could change in the coming weeks,” Mark Briffa, CEO of Air Partner has said.

www.ceruleanaviation.com

Advertorial

The Real Alternative For Cargo

Air Cargo is Taking Off at Greenville-Spartanburg International Airport Greenville-Spartanburg International Airport (GSP) is becoming the airport of choice for fast and efficient handling of specialized, time-sensitive cargo shipments. Since 2015, cargo volume increased by 91.8%; from 29,875 tons in 2015 to 57,209 tons in 2019. Carriers are finding that unlike traditional gateway airports, GSP enjoys an abundance of airspace and airfield capacity, short taxi times, and uncongested arrival and departure patterns. With an 11,001-foot runway, GSP can support the world’s largest aircraft and offer easy access to global networks and freight hubs around the world.

GSP Serves a Vibrant, Growing Region GSP is centrally located between Atlanta, Georgia and Charlotte, North Carolina in a 10-county region called Upstate South Carolina (SC). This area is business-friendly and a magnet for foreign investment. Nearly 500 international companies from over 30 nations now call the Upstate region home. Notable companies include BMW Manufacturing, Michelin North America, Adidas, Bosch, Fujifilm, Mitsubishi Polyester Film, and many others.

International and domestic companies are equally finding that Upstate SC is open for business. Offering well-educated and highly trained employees and a population in excess of 1.5 million people, companies are finding Upstate SC provides fertile ground in which to grow. Since 2010, the region has announced more than $15 billion in capital investment and more than 43,000 new jobs. The Upstate SC region has accounted for approximately 38% of the state’s new capital investment, and 34% of the state’s new job announcements.

Location, Location, Location GSP is easily accessible from the region’s superior roadway system. U.S. Interstates 85 and 26 provide east-west and north-south access to all points in the southeastern U.S. Ample rail lines allow product to move from points across the nation to GSP. In addition, an Inland Port located directly adjacent to the airport provides shippers access via rail to the Port of Charleston, a deep-water port in Charleston, SC.

Cerulean Aviation Having a superior location and abundant facilities is good, but having the ability to also provide ramp, ground handling, warehouse and fueling services through one entity is even better! Cerulean Aviation provides customers an all-in-one option for cargo handling. These efficiencies have allowed the airport to effectively handle thousands of air cargo operations in support of OEMs and tier suppliers worldwide in recent years. With Cerulean’s experience and competitive pricing, shippers and carriers know their shipments are in good hands. Through close coordination with on-site U.S. Customs and Border Protection officials, Cerulean is often able to reduce cargo on-airport times to levels not possible at other gateway airports.

GSP Offers a Solution for Your Unique Shipments. GSP is currently the only airport in North or South Carolina offering scheduled non-stop international cargo service. Boeing 747 flights regularly travel between GSP and Europe in support of local manufacturers. Charter flights serving destinations across the globe are also common. In 2019, GSP handled 57,209 tons of cargo valued at $3.46 billion (USD). This was an increase in value of 38.5% over the previous year. The same analysis ranks GSP 27th among US airports for total trade value and 26th by total cargo weight. The airport’s top imports and exports include motor vehicles, civilian aircraft, vehicle parts, medical instruments, navigational equipment, and electric board panels and switches. GSP’s top trading partners are Germany, Mexico, Malaysia, Hungary, and Canada. Unique shipments have become commonplace at GSP. In September 2018, Cerulean provided ground support for the world’s largest civilian equestrian airlift in conjunction with the FEI World Equestrian Games. Over 550 horses were transported to GSP from all over the world to compete in competitions taking place at the nearby Tryon International Equestrian Center located in North Carolina.

New Air Cargo Facility Accommodates Growth To accommodate the significant growth in cargo volume, GSP opened a new $33 million Air Cargo Facility in September 2019. The 110,000 square foot facility offers state-of-the-art handling capabilities, a 17-acre ramp, and parking for up to three 747-8 aircraft simultaneously.

GSP International Airport is Your Efficient Alternative If you are looking for an alternative to the delays and hassle offered by other gateway airports, try the Southeast U.S.’s convenient alternative airport, Greenville-Spartanburg International Airport.

Contact: Cerulean Commercial Aviation, Greenville-Spartanburg International Airport (GSP), 3090 Gateway Drive, Greer, SC 29651 T: +001 864-848-6226, E: cargosales@ceruleanaviation.com

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17/03/2020 09:47

As Boeing’s problems mount Airbus sales stall, says GlobalData AS setbacks for Boeing’s 737 MAX accumulate, uncertainty over its path to recertification continues to impact companies within Boeing’s US supply chain, says GlobalData, a leading data and analytics company. While some companies attempt to solicit business elsewhere, others cut jobs in order to deal with reduced demand. For example, General Electric has moved towards Boeing’s rival, Airbus, hoping to solicit business supplying engines for Airbus’ A330neo, while Spirit AeroSystems laid off 2,800 employees as production of the 737 MAX was halted.

The latest issue arose on 9 March 2020, when Boeing’s suggestion for the resolution of issues with wiring bundles on the 737 MAX was rejected by the Federal Aviation Authority (FAA), fearing that they could cause a short circuit. Following this rejection, Boeing must develop a new proposal that addresses the issue, possibly implementing a design to separate the bundles, which could further delay the return to service of the 737 MAX. In addition, in February, Boeing vice-president Mark Jenks indicated that foreign object debris had been found in the fuel tanks of several 400 737 MAX airplanes in storage.

These setbacks compound uncertainty regarding the return-to-service of the 737 MAX after it was grounded in March 2019. Harry Boneham, associate analyst at GlobalData, comments: “Regardless of any possible further delay to the return of the 737 MAX, the primary cost of these issues is further reputational damage to Boeing. “Public concern regarding the safety of the 737 MAX, compounded by ambiguity over the timeline its return to service, has driven airlines to look to competitors such as Airbus to fulfil their single-aisle aircraft demands.”

ETIHAD Cargo has announced its freighter schedule for the IATA summer season, boosting capacity to its top freighter gateways. The network will also be expanded to capacity-constrained markets that are wrestling with decreased passenger operations in light of the public health emergency caused by the novel Coronavirus (COVID 19), offering a strategic cargo lifeline and supporting the continuity of the global trade ecosystem..

Hellmann takes over contract logistics for JAKKS Pacific throughout Europe

ellmann Worldwide Logistics will handle all contract logistics for the US toy manufacturer JAKKS Pacific. As a full-service provider, the logistics company will take over not only central warehouse management but also other value-added services such as display building, product relabelling and repackaging. This will include handling around 360,000 cartons per year in its warehouse in the Dutch city of Rotterdam in the incoming goods department. The goods are shipped by truck to end customers throughout Europe, which will primarily be supermarkets, wholesale chains and online retailers. In order to be able to provide optimum support for new customer from the Netherlands, Hellmann is expanding its location in Rotterdam with a new state-of-the-art warehouse with

approx. 8,000 sq m and 7,000 pallet spaces. “The smooth handling of logistics processes is a central prerequisite for our continued growth in Europe. “We are pleased to have appointed Hellmann, an internationally renowned logistics service provider, to take over the goods in the port of Rotterdam and then manage the entire supply chain – right up to the end-customer – for us,” François Larivière, director of global supply chain at JAKKS Pacific has commented. Marc Wijnen, chief operating officer of Contract Logistics Europe at Hellmann added: “For JAKKS Pacific, we not only cover the classic distribution of their products throughout Europe, but as a full service provider, we also take on individual services beyond the usual standard. In this way, we support JAKKS Pacific in their further development of the European market.”

Amco Services international appoints Jones

K Midlands-based global logistics, warehousing and transport business Amco Services International has appointed Mark Jones (pictured right) to the newly created role of operations director following significant business growth. The appointment sees Jones, who joined Amco in 2016 as head of operations, taking responsibility across the group for Amco’s UK and Eastern European transport and vehicle fleet, driver compliance and Health and Safety. He will manage the group’s warehouse operations, IT and systems with the continuing development of Warehouse And Transport Management Systems as a key focus. Quality Management Systems will also fall under Jones’ span of control. Don Mucci, Amco’s managing directo (pictured left), says that creating this new role was

a logical step. “Pivotal to our success and continued growth is our unwavering focus on our operational functions, systems fleet and warehousing infrastructure. “Mark and his team are also key in making sure our customers receive the highest level of service and management attention.”

WHILE President Trump’s strict travel restrictions from Europe to the US continue, global perishable cargo specialists PML is advising that a solution is available to overcome this dramatic turn of events. The new rules, which came into effect on Friday March 13, at midnight, were directed at the 26 European states in the Schengen area but did not include the UK or Ireland. Nick Finbow, sales director at PML commented, “We recognise the major concerns this will cause for so many of our clients but for us it is very much business as usual. European companies, or companies with a European base that are looking to send their goods to the US can forward their cargo to the UK and we will seamlessly send the consignment onto the US. “Similarly, if a cargo is scheduled to return from the US back into Europe, we can receive the goods into the UK, undertake all the neces-

sary customs clearance checks and deliver to the desired European destination. The restriction applies to people, not goods and with our established expertise in transferring cargo, we have the capacity to enable the continued transportation of goods to and from the US.”

Business as usual post-Trump

erry Logistics has moved its UK airfreight division into a new facility close to London Heathrow as it continues to grow its airfreight volumes. The 4,000 sq m facility operates 24/7 and provides a fully temperature-controlled bonded warehouse including deep frozen storage, pick and pack machinery, vacuum cooling and other operations to meet tight delivery schedules and product shelf life requirements. The facility has also achieved a rating of AA+ under the new BRC Global Standard for Food Safety Issue 8.

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B&H Worldwide onboards AOG Technics in Germany

B&H Worldwide will now manage the critical and timely logistics of handling aircraft spare parts and engine materials for AOG Technics in Germany. “The location of our Frankfurt office at Cargo City has shown our customers we can provide them with a Forward Stocking Location where they can strategically position inventory in the heart of Europe and we are delighted to welcome AOG Technics to the facility,” according to Seth Profit, sales director at B&H Worldwide Group. B&H and AOG have previously worked together for exports to Europe and the USA from the UK, but this is the first time they have partnered in mainland Europe. Effective immediately, B&H Worldwide’s Frankfurt facility will become responsible for storing parts, despatching parts and repacking parts before despatch. Most notable among the items which will be handled are aero engine blades.

IBS’s industry-first ‘zero outage’ SaaS solution selected by Lufthansa Cargo

IBS Software helps Lufthansa cargo handling move to the cloud - Dr. Jochen Göttelmann (LCAG), V K Mathews (IBS), Dr. Martin Schmitt (LCAG) and Ashok Rajan (IBS). L to R

LUFTHANSA Cargo has selected IBS Software’s industry-first ‘zero outage’ SaaS solution to host and maintain its iCAP cargo handling application platform. IBS has signed a five-year contract with Lufthansa Cargo to take full ownership of Lufthansa Cargo’s iCAP cargo handling application platform, which is powered by IBS Software’s iCargo cargo management platform. With zero outage, planned maintenance is completed with absolutely no outage to the business IT system. This ca-

pability results in operational stability to provide effective and seamless cargo handling operations around the clock across all time zones. Initial performance of the system, which operates from IBS Software’s new data centre in Frankfurt, has shown that the SaaS service has exceeded the benchmarks in all parameters set by Lufthansa Cargo, with 100% SLA compliance. “IBS has consistently delivered beyond expectations,” commented Dr Jochen Göttelmann, CIO at Lufthansa Cargo.

AEI to provide Nauru Airlines with a B737-300SF conversion AERONAUTICAL Engineers, Inc (AEI) is to provide Nauru Airlines with a 10-pallet position B737300SF freighter conversion. The flag carrier airline of the Republic of Nauru will use the AEI B737-300SF freighter to transport fresh food, mail, medicines and other freight from various points in the Pacific. and

used to support charter flights in the region. Modifications to the aircraft (MSN 28732) will begin at Commercial Jet’s Miami, Florida facility in late May 2020. The 10-pallet configuration B737-300SF freighter offers a main deck payload of up to 42,900lbs (19,460kg).

XPO Logistics: A Forbes 50 best Spanish company to work for XPO Logistics, a global provider of transportation and logistics solutions, has been named one of the Forbes 50 best companies to work for in Spain for the second straight year. The recognition, announced by Forbes magazine, is based on survey responses from over 8,000 employees of the largest companies in Spain, using 38

different indicators of satisfaction and well-being. Malcolm Wilson, chief executive officer, XPO Logistics Europe, said: “It’s gratifying to know that our colleagues in Spain think so highly of employment at XPO. Our culture puts our people first, and we want everyone to succeed at their goals.”

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ACW 23 MARCH 2020

NORTH AMERICA

To the future, and beyond focused on operational employees. Sessions were well-attended with speakers focusing on dangerous goods, regulatory compliance, reducing the industry’s carbon footprint, cargo insurance, trucking issues and public relations when disaster strikes. The first day saw keynote speaker, Mark Wiese, the manager of Kennedy Space Centre’s

Logistics Program, talk about the private sector’s role in air cargo and the opportunities in sending payloads into deep space. He described NASA’s plan for the commercial supply chain in deep space that will enable an interplanetary economy and support the Artemis lunar exploration plan. The second day’s keynote speaker Craig

WORLDWIDE Flight Services (WFS), has made five key appointments to its leadership team in North America, which all took effect at the beginning of the year. All of the new appointments report directly to Mike Simpson, WFS’ executive vice president of the Americas. “These key appointments bring highly-experienced, invaluable new blood into our North America business and also allow us to reward existing members of our senior management team, who are making such a significant contribution to our growth,” Mike Simpson said. The new appointments are:

Paul Walton who joins the company as senior vice president Express; Terry Trainor, as senior vice president ground who has responsibility for WFS’ North America Ground Business; Victor Chin has been appointed senior vice president Centre of Excellence (SVP COE). Jeffrey Bounds has been promoted, taking the post of senior vice president project management office. Mark Berner joins the company as senior vice president, safety and security compliance, replacing Chin in his previous role.

ON Thursday, March 12, Ted Stevens Anchorage International Airport (ANC) was notified that an individual associated with a cargo flight tested positive for the novel coronavirus (COVID-19). The patient is a foreign national who developed a fever and respiratory symptoms shortly after arriving in Anchorage the day before. The patient immediately contacted their physician and then went to Alaska Regional Hospital for testing.

Cargo flights to ANC strictly adhere to guidelines set out by the US Federal Aviation Administration and the US Department of Health and Human Services. Cargo flights are completely separate from any passenger flights at ANC. Cargo crew members never come into contact with general passengers nor access the main terminal. Cargo crew members are cleared through USCBP agents at ANC’s North Terminal.

Fuller, CEO of FreightWaves, focused on the future, commenting on the fact that the freight industry is undergoing a rapid transformation in regard to digital brokers, autonomous trucks, increasingly fast data, and many other inputs. Venture capital into FreightTech has grown from $100m in 2014 to over $3b in 2018.

on the direction the industry is heading. AirCargo 2021 will take place in New Orleans on February 22-24, 2021. Organisers have promised the event will again feature a wide and diverse spectrum of airlines, truckers, forwarders, software providers, warehousing and other supply-chain industry professionals.

WFS strengthens leadership team In 2020, Chicago Rockwell

Positive COVID-19 test in Alaska after cargo flight

ilkway West Airlines will commence a weekly cargo flight service to Dallas Fort Worth. The flight’s operation commences on April 6. This is in addition to the expanding network of

three flights a week to Chicago. The flight will utilise the airlines’ Boeing 747-8 equipment, said the airline. “On behalf of Silkway West Airlines, we look forward to continuing to strengthen our valued customer rela-

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With improved technology improving communication, safety, speed, and efficiency, the future holds a vast number of possibilities. Fuller had a clear message to forwarders in the audience: “If your business is high volume, easily commoditised freight, you’re at risk because Amazon, Uber and all these venture capital-backed companies can optimise that hourly. “But if your business is handling specialised product X where it takes human intelligence, or coordination, or it’s a niche, perhaps a very specialized service, not high volume, then you’re going to thrive in that environment.” The conference left a lot of food for thought

HE annual AirCargo conference was held in Nashville across January 26-28 at the Onni Hotel in Nashville, Tennessee. The event, held by the Airforwarders Association (AfA), Airports Council International-North America (ACI-NA) and the Air Expedited Motor Carriers Association (AEMCA) was one of the most successful AirCargo conferences and is set to continue growing. Over 800 industry professionals attended and the sold-out exhibit hall featured almost 100 vendors serving the cargo community. The event featured two educational tracks, one for company leadership and the other

tionships and build upon our proven track record for providing world-wide cargo solutions, especially in theses challenging times,” explained Fadi Nahas, Silkway vice president for the Americas.

takes off for Midwest SINCE it was named fastest growing cargo airport in the world by Airports Council International (AIC) in 2019, Chicago Rockwell International Airport (RDE) has continually lived up to its reputation with unprecedented growth, which is set to soar. Between 2018 and 2019, Rockwell saw growth of 55%, making it the 19th largest cargo airport in the US according the Federal Aviation Administration (FFA), and in just five years has tripled the amount of cargo landing in the airport. Cargo operator AAR Corp, the largest nationwide and third-largest global Maintenance, Repair and Overhaul (MRO) provider, began operation at RDE in 2016. Since then, Rockwell has successfully partnered with the federal and state governments, City of Rockford and Winnebago County to build $40 million worth of new facilities. Since the planned growth, UPS has moved 13 more flights from its Des Moines locations to Rockwell, making Rockwell UPS’ second largest hub in North America. Amazon Air also operates from Rockwell, their facility has grown from 7,200 sq m to 20,000 sq m and will operate 14 flights per day.

Job creation Nearly 2,000 jobs were created last year, both permanent and seasonal positions, through new and existing tenants. The airport

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expects to see an additional 1,000 jobs added throughout 2020. UPS’ moving of 13 more flights to Rockwell created 125 new jobs alone and through partnership with Rock Valley College the Rockwell has already hired 40 certified aircraft mechanics for the year. Adding to this figure, Amazon Air’s growth has increased their workforce from 50 people in 2017 to an impressive 800. This employment has knock -on effects generally in the Chicago area. “We are extremely grateful and honoured by the continued interest, support and investment by both federal and state leaders in enhancing and expanding RFD’s cargo and passenger operations,” said Mike Dunn, Rockwell’s executive director. “It’s no secret that the world’s largest planes can and do land at RFD. Additionally, airlines recognise our capabilities and enhanced infrastructure for future business development.” Facilities investment has been sluggish due to the delayed recovery of the semiconductor industry, but is forecast to rebound. IT investment is expected to improve, based on a global semiconductor market recovery. The growth of goods exports is forecast to rebound, with IT products shifting to an increase driven by a recovery of the semiconductor industry, while exports of non-IT products are expected to decline slightly due to the ongoing drop in unit prices of petrochemical products.

TRADE&EVENTSFINDER Industry Event

Airlines Turkey

Freight Forwarders

Industry Event

Hong Kong

Freight Forwarders USA

World Air Cargo Awards 2020

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Is the answer in I the rubbish bin? THERE’S SOMETHING IN THE AIR

n 2019 total fuel consumption for commercial airlines worldwide were at a staggering 96 billion gallons. Aviation will account for around 15% of global oil demand growth up to 2030, which will account for 3.5% of related CO2 emissions. Improving the damaging environmental impact of the

aviation industry is a race against the clock. Large oil companies are pioneering sustainable aviation fuel (SAF) in place of traditional jet fuel, including biofuel which was approved for commercial use in July 2011. The first test flight using blended biofuel took place in 2008 and since then, more than 150,000 flights have used biofuels.

Feedstock

Biofuels can be created by a variety of feedstock and wastage. “We really need to focus on the feedstocks that are cheapest and most abundant,” said Jeff Skeer, a senior programme officer for the International Renewable Energy Agency. “And I think there’s a lot out there, not just from the carbon waste streams and woody waste streams but even also from energy crops. There’s a lot of interesting developments in carbohydrate crops lately.” According to the Atlantic Council’s Global Energy Forum (GEF) of 2019, there are seven feedstocks that would be scalable, including palm oil. Palm oil is a very high yielding crop and has good conversion into biojet fuel with by-products such as diesel, naphtha and propane. Since 2009 most growth in biodiesel has come from imported palm oil, with most of this oil being used in cars and trucks in Europe. Although demand for palm oil to make food dropped by 11% in 2018, maybe due to increased awareness of its environmental damage, demand for the oil in biodiesel grew by 3%.

Fuel to the fire

Given that biofuels have accounted for 90% of vegetable oil demand increase since 2015, current ambitions for the use of biofuels is likely to lead to a massive increase in demand for palm oil and soy by 2030. Increased production of palm oil and soy has already led to massive deforestation in Southeast Asia and South America. A report by the Rainforest Foundation Norway found that biofuels are currently by far the major driver of demand for vegetable oils. According to this report, total demand for

palm oil may increase by 61 million tonnes, equal to 90% of current palm oil production, whilst demand for soy oil may also increase by 41 million tonnes, almost 75% of current production. This increase would cause an estimated seven million hectares of deforestation, including up to 3.6 million hectares of peat drainage which will ultimately increase CO2 output. This will continue to be the very problem it is aimed at remedying. Global CO2 emissions from this additional deforestation are estimated to be 11.5 billion tonnes which is more than China’s current annual emissions from burning fossil fuels. The aviation industry is potentially the largest consumer of high deforestation risk biofuels. If the world were to follow Europe’s current thirst for palm oil biodiesel, 4,300,000 hectares of land in the tropics would be needed to quench it. That area is equal to the remaining rainforests and peatlands of Borneo, Sumatra and peninsular Malaysia. “Biofuels were supposed to reduce greenhouse gas emissions, but this is not happening in reality,” said Laura Buffet, energy director of transport and environment at Europe’s leading NGO campaigning for cleaner transport. “If decision-makers don’t avoid crop biofuels and especially high-risk feedstock like palm oil and soy, biofuel policies risk adding fuel to the current forest fires around the world.”

Oil-based biofuels

In January 2018, the European Parliament proposed to end public subsidies for the use of palm oil biofuels by 2021. “The EU and the US have introduced measures to avoid palm oil-based biofuels due to deforestation risk, but globally demand for high deforestation risk biofuels is still increasing. “That has to change, and fast”, says the author of the report, renowned biofuels expert Dr Chris Malins. It is now back over to the aviation industry to research and develop a sustainable and less environmentally damaging method of creating biofuel. Perhaps the answer is in the rubbish bin waiting to be utilised?

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