GLOBAL A
I
R
C
A
R
G
O
W
E
E
K
MANAGEMENT
A
I
R
C
A
R
G
O
W
E
E
K
WORLD AIRPORTS .COM ACW Digital is sponsored by FREIGHTERS.COM
FREIGH
FR
The weekly newspaper for air cargo professionals Volume: 20
Issue: 42
23 October 2017
Slot constraints squeeze freighters out of Schiphol
A
msterdam Airport Schiphol’s position as an international mainport is at risk after low cost carriers rejected a ‘local rule’ to give priority for spare slots to freighter flights, unions and businesses warn. The airport is nearing its limit of 500,000 flight movements per year, and freighters are likely to suffer, with the FNV trade union warning that 30 weekly cargo flights may not reach Schiphol due to restrictions. A local rule for freight flights advocating a distinction between cargo and passenger flights when it comes to allocating slots was proposed by the FNV, and business associations evofenedex, Transport and Logistics Netherlands and Air Cargo Netherlands to give freighters a priority for any spare slots. It says there are 600 additional slots due to factors including bad weather and staff shortages at Ryanair that could be used for freighters but the plan has been rejected by low cost and leisure carriers. The rejection has been described as “A death strike for the freight sector and the position of Schiphol as international mainport”. In a joint statement the trade union and business associations say: “Entrepreneurs and the trade union are disappointed that the Coordination Committee Netherlands (CCN) does not attract the importance of freight and prevents its own interests. It is clear that freight at
WHAT DOES THE FUTURE HOLD FOR THE AMERICAS? PHARMA AND PERISHABLES ON THE AGENDA PHARMA STANDARDS HELP OTHER SECTORS the CCN has an unprotected and even endangered status.” They also say: “By rejecting such a local rule, the low cost / leisure companies prove that in times of airport scarcity the self-interest is gaining the national importance of the mainport Schiphol.” It is calling on the government to intervene “to combat the structural loss of freight flights at Schiphol in the coming years”. The trade union and business associations point out that freight flights only make up 3.5 per cent of movements at Schiphol but are responsible for 20 per cent of employment at the hub. They warn: “The Netherlands as a logistical turntable will incur irreparable dam-
age if the freight flights at Schiphol are declared fugitive instead of protected.” When proposing the local rule at the beginning of October, Jan van den Brink of FNV Aviation warned of the damage the Netherlands could face if nothing was done. He said: “We risk losing most airlines with their cargo to airports in our neighbouring countries, in particular Brussels, Liege or Frankfurt, if the Secretary of State does not intervene. And once they are lost, you will not get them back.” Some airlines are already making moves, with Singapore Airlines Cargo moving four of its eight weekly flights to Brussels Airport and AirBridgeCargo is planning up to 12 flights a week from Liege Airport.
the possibility of sharing capacity and space agreements; combining networks to offer higher frequency of services via the hubs of Guangzhou, Shanghai, Paris and Amsterdam; provide access to each other’s capacity and ground services under a one roof concept; and increase mail and express business opportunities between China, Europe and the USA. The MoU was signed at a ceremony in
Guangzhou on 11 October by AF-KL-MP Cargo executive vice president, Marcel de Nooijer and China Southern Cargo senior vice president, Zhao Fengsheng. De Nooijer says: “We continuously want to create more value to our customers, and in doing so we are very excited to deepen the cooperation with our strategic partner China Southern Cargo. This new phase is good news for our customers.” Fengsheng adds: “Signing of this MoU leads to a new phase of cooperation between us, we anticipate concrete result coming out of this.” The airlines say the MoU could lead to an integrated commercial and operational cargo cooperation joint venture between Europe and China.
New MoU to strengthen cooperation at China Southern and AF-KL-MP China Southern Airlines Cargo and Air France KLM Martinair (AF-KL-MP) Cargo have signed a new memorandum of understanding (MoU) to further strengthen and shape strategic cooperation. The two airlines signed a MoU in September 2015 focusing on strategic cooperation between the two parties, and they plan to collaborate in a number of areas over the next four years. AF-KL-MP says it wants to expand the existing cooperation and build on experience to enable it to continue to use its membership of the SkyTeam Cargo Alliance to maximum advantage; connect China Southern’s position in China and Asia Pacific with AF-KL-MP’s position in Europe, Africa and trans-Atlantic with
IAG ADDS WASHINGTON CONNECTION
4
10
11
12
Vertannes inducted into Hall of Fame
AIR cargo veteran and former IATA head of cargo Des Vertannes has been inducted into the TIACA Hall of Fame. Vertannes has fostered and led industry collaboration in e-freight, cargo security and handling, initiated the Global Air Cargo Advisory Group and pushed to modernise the relationship between airlines and forwarders. Among his achievements as head of cargo for the International Air Transport Association (IATA) between 2010 and 2014 was setting the challenge of reducing transit times by 48 hours. The International Air Cargo Association (TIACA) chair of the chairman’s council, Oliver Evans says: “His dedication, perseverance, visionary thinking, and inspiring leadership have made a profound and lasting impact on our industry.” Vertannes started his career with British Airways in 1970 before setting up his own forwarding business in 1984, then joining Air Canada as general manager for cargo in 1991. He was chief executive with Air Menzies International, managing director at Menzies World Cargo, head of cargo at Gulf Air and then Etihad Airways before joining IATA. A year after retiring from IATA he became a strategic advisor to cloud based IT cargo management provider, SmartKargo.
aircargoweek.com
NEWS WEEK Industry calls for customs transaction period
E
uropean businesses and trade bodies are calling for a seamless customs transaction period following Brexit to protect European Union (EU) and UK competitiveness. The group is urging EU and UK negotiators to put legal certainty and predictability for business and trade at the top of their negotiating agenda, and its priority for customs is the guarantee of a seamless transition period after March 2019 replicating the current commercial, regulatory and trading environment. They say this guarantee will enable the industry to plan and invest appropriately for what takes place in March 2019. It calls for the transition period to last until the commencement of a long term EU-UK partnership agreement, which must promote an economic and trading relationship that maintains and improves the mutually beneficial ties between the EU and UK. The group says though there are still significant questions for both sides to discuss and resolve at a political level, negotiators must not lose sight of the damage that will be inflicted if business and economic activities are not protected. It says: “Big bang or ‘cliff edge’ situations must be avoided. They would send costly shock waves through EU trade flows and supply
chains that have evolved and flourished over the last forty years.” “The EU and the UK should recognise their mutual self interest in finding a way to preserve these links and the legal certainty that is vital for companies to continue serving Europe’s citizens on both sides of the Channel.” The associations signing up include: British Chambers of Commerce EU and Belgium; European Association for Forwarding, Transport, Logistics and Customs Services; DIGITALEUROPE; the European Shippers Council; EurTradeNet; Freight Transport Association; Global Shippers Forum; International Road Transport Union; Spirits Europe and World Shipping Council.
K+N flying with new contracts
AIRFREIGHT volumes at Kuehne + Nagel have grown at twice the market rate in the first nine months of 2017 with new contracts and acquisitions. The segment grew 19 per cent to 180,000 tonnes with new business from the pharmaceutical, high-tech and automotive industries. Kuehne + Nagel says perishables have been very successful, and it acquired Kenyan perishable logistics company, Trillvane in July 2017, which has been part of the Kuehne + Nagel Group since September 2017. The company says strict cost control and productivity increases due to process automation compensated for margin pressure, and earnings before interest and tax (EBIT) increased 3.2 per cent to 227 million Swiss francs. Kuehne + Nagel International chief executive officer, Dr Detlef Trefzger says: “The business development in the first nine months of 2017 confirms our strategic focus on value-creating solutions and makes us confident to reach our profitability targets we have set ourselves for the full business year.” Group revenue increased 10.4 per cent to CHF13.5 billion and net profit was up 1.3 per cent to CHF540 million.
Alaska starts Freight for Less
ALASKA Airlines has added a new perk called ‘Freight for Less’ for its Club 49 program members enabling them to make major savings on intra-state cargo shipments. Members can save up to 90 per cent, booking up to 100 pounds of freight through Alaska Air Cargo for a flat rate of $10. Individual shipments dropped off at Alaska Air Cargo within 24 hours of arrival or departure are eligible for discounted rates. The airline is also offering an every day cargo benefit, where members can ship up to 100 pounds of cargo to 17 Alaska communities for a flat rate of $40. Alaska Airlines regional vice president, Marilyn Romano says: “By adding Freight for Less to our lineup of Club 49 benefits, Alaskans can save money when they travel with or ship their gear and their groceries all on Alaska Airlines.”
aircargoweek.com
ACW 23 OCTOBER 2017
3
NEWSWEEK
Heathrow Airport unveils 10 point sustainable airfreight plan
H
eathrow Airport has unveiled its 10 step Blueprint for Sustainable Freight plan to reduce freight emissions while volumes continue to grow. Non-executive chairman, Lord Deighton unveiled the plans at the British Chambers of Commerce International Trade Summit in Birmingham to address the environmental impact of cargo and how Heathrow plans to grow with expansion but not increase overall airport-related traffic on the road. There are 2.75 million freight vehicle movements a year, the majority of which support airport cargo operations, and plans include an app for local forwarders to consolidate movements, airfield charging points and modernising cargo infrastructure. Lord Deighton says: “Heathrow is dedicated to keeping the UK economy growing – but at the same time, we have pledged to be a sustain-
ability leader and made promises to our local communities that we intend to keep.” “The ten steps we have outlined today allow us to keep building on our cargo strength and role as Heathrow’s biggest port by value, while restricting the emissions and local impacts of freight vehicles.” The move has been welcomed by Freight Transport Association director of global and European Policy, Chris Welsh, who says: “Heathrow’s Blueprint for Sustainable Freight is a collaborative and pioneering plan, by establishing a sustainable freight group, Heathrow will gain valuable insight from industry to develop procedures that are synergetic and will satisfy both Heathrow’s ambitious environmental goals as well as increasing the efficiency of freight operations in and around the airport. We look forward to working with them.” The 10 points are:
• Launching an online load consolidation tool • A new cargo village to allow more direct trips to the airport • Increase airside transhipment facilities • Consolidate facilities to reduce traffic on local roads • A local code of conduct for freight operators focusing on behaviour including vehicle routes and aggressive driving
• Integrated enforcement with local highway authorities and boroughs to address issues rather than displacing them • Delivering a strategic freight plan with local authorities • Create a Sustainable Freight Group • Trial low emission vehicles and technology • An ultra low emission zone for airside vehicles
IAG Cargo will start trialling its Cargo Connector service at Washington Dulles Airport from October 2017, the tenth station to join the North American network. The export collection and import delivery service takes freight direct from the aircraft and delivers it to the forwarders’ handling facilities. IAG Cargo operates three flights in and out of Washington each day, with cargo arriving from hubs including London Heathrow Airport and Dublin Airport. Typical commodities include medication, chemical products and machine parts into the region, and IAG Cargo expects aircraft parts, chemical products and medicines will be key export commodities benefitting from
this service. IAG Cargo vice president for North America, Joe Le Beau (pictured) says: “Cargo Connector has been an important competitive differentiator for us and has been a huge success in the North American market and beyond.” All of IAG Cargo’s airlines are integrated with the Cargo Connector service including Aer Lingus and LEVEL, and IAG Cargo says their inclusion offers additional services and flexibility for customers transporting goods to and from the US.
IAG adds Washington connection
Compressors flown to Turkmenistan ANTONOV Airlines has transported four compressor skids on behalf of Bollore Logistics China from Calgary, Canada to Mary, Turkmenistan. The compressor skids were transported for a Chinese oil & gas engineering, procurement and construction company on four separate flights for a gas field in Turkmenistan. The consignment included a main skid measuring 13.7 metres long, 5.3 metres wide and 4.1 metres high weighing 81.5 tonnes, and a sub skid measuring 7.6 metres long, 5 metres long and 2.4 metres high weighing 13.9 tonnes, in addition to miscellaneous equipment. Antonov Airlines carries an adaptor onboard each of its aircraft, extending the lift capacity of its system to a total of 30 tonnes.
4
ACW 23 OCTOBER 2017
aircargoweek.com
Antonov Airlines commercial manager, Paul Bingley says the AN-124-100 was the ideal aircraft to accommodate the oversized cargo, saying: “Due to the size and weight of the cargo, both the AN-124-100’s unique on-board crane system and extension ramps and mobile cranes were used for safe loading and offloading.”
Tabloid page bled.indd 1
03/10/2017 12:06
Tabloid page bled.indd 1
16/10/2017 14:29
NEWS WEEK First Qatar Pittsburgh freighter takes off
atar Airways Cargo’s new Boeing 777 Freighter service has touched down at Pittsburgh International Airport – its 13th freighter destination in the Americas. The twice-weekly freighter flight takes off from Doha on Wednesdays and Saturdays, with stops at Luxembourg and Atlanta, Georgia before arriving in Pittsburgh. On the return from Pittsburgh on Thursdays
and Sundays, the freighter stops at the cargo carrier’s European hub, Luxembourg, before arriving into Doha, Qatar. The service provides 200 tonnes of weekly capacity. Pittsburgh has been renowned for its manufacturing sector for years, but now other industries are expanding including life sciences, robotics, health care, information technology, nuclear engineering. Products transported into and out of Pittsburgh are set to be heavy electronics, high-value goods and pharmaceuticals. Qatar Airways Group chief executive, Akbar Al Baker says the service will bridge the air cargo gap between Americas, Europe and Asia. He adds it will support US import and export markets. Pittsburgh International Airport chief executive officer, Christina Cassotis says it positions the gateway as a logistics centre for importing and exporting the region’s goods.
SINGAPORE Airlines Cargo has moved four of its eight weekly flights from capacity-stricken Amsterdam Airport Schiphol to Brussels Airport. The move is a boost to the Belgian gateway which saw cargo traffic decline by 1.1 per cent in September as freighters departed due to noise restrictions. Total cargo was down 1.1 per cent to 42,446 tonnes, with full freighters slumping by 16.9 per cent to 12,176 tonnes, though integrators were up six per cent to 18,588
tonnes and belly cargo rose by nine per cent to 11,682 tonnes. It says the decrease should be offset in the coming months due to flights moving from Amsterdam to Brussels. Total cargo volumes grew by 11.2 per cent in the first nine months of 2017 to 392,511 tonnes. Frankfurt Airport continues to grow in September with cargo increasing 4.1 per cent year-on-year to 187,708 tonnes, its strongest September since 2010.
Q
Singapore switches flights to Brussels
Trinity and Etihad team up for Hanoi TRINITY Logistics and Etihad Airways have collaborated on operating a weekly Boeing 777 Freighter service between Vietnam’s Hanoi International Airport and Ohio’s Rickenbacker International Airport. The move represents the first time the airports have been directly connected, making the transfer of goods between the two countries faster than ever before. The companies made history in 2016, by becoming the first and only alliance to operate a twice-weekly direct freighter service between Colombo, in Sri Lanka and Rickenbacker International Airport. A year later, their latest service promises clients three weekly flights from Asia to the East Coast of the US, with Columbus, in Ohio being the first port of entry. Trinity Logistics president, David Pereira
says: “We expect our flight will be taken advantage of, for the speed and capacity it creates.” Etihad Cargo director, Roberto Gilardoni adds: “We are excited to develop a new market with our strategic partner Trinity Logistics. Expectations remain high in terms of our mutual growth plans for the region.”
HKIA continues strong growth path
HONG Kong International Airport (HKIA) continues to see strong cargo growth with a 9.1 per cent year-on-year increase in September to 430,000 tonnes. Volumes have grown in every month of 2017 year-on-year varying. Exports rose by 14 per cent, helping to drive the cargo growth, with throughput to Europe and Southeast Asia increasing most significantly. In the first nine months of 2017, volumes surged 10.9 per cent to 3.6 million tonnes
aircargoweek.com
and were also up 10.2 per cent to 4.87 million tonnes on a rolling 12-month basis. HKIA is welcoming new services in October, as Cambodia Angkor Air and JC (Cambodia) International Airlines, will commence operating flights to and from Cambodia on 29 October. Cambodia Angkor Air will fly two weekly flights to Siem Reap, while JC (Cambodia) will serve two flights to both Siem Reap and Phnom Penh each week. Air Seoul will also start operating daily flights to Seoul of South Korea starting 31 October.
ACW 23 OCTOBER 2017
7
LATIN AMERICA
Uruguayan airport aiming to be LATAM’s pharma hub
A
mbitious Montevideo (MVD) Free Airport has big plans and is aiming to be Latin America’s (LATAM) main pharmaceutical hub. Last month, the Uruguayan gateway became a member of Pharma.Aero and the 7th airport to join following the launch by founding members Miami International Airport and Brussels Airport last year.
MVD Free Airport managing director, Bruno Guella says overall tonnage has increased 404 per cent year-on-year (YOY) in 2017, as a result of initiatives it has been running since mid-2015. These have included inaugurating Phase 1 of its Pharma Hub, restructuring information systems for further automation and traceability and developing a consultative commercial approach to global players. Guella says it has received “widespread acceptance” given the understanding of regional complexities and challenges alongside a “convenient geographic location and unique tax and legal framework”. He says pharma plans have been well received: “Global players in the pharma and high-tech industry have located their regional distribution centres at MVD Free Airport, having deposited
their trust in early stages of our development. “This has done nothing, but increase our commitment to service-level excellence and to continuous improvement, and is also a very strong vote of confidence from the pharma industry itself, a validation of our value proposition to the pharma supply chain.” The airport is seeing strong interest in pharma and Guella notes a big pull is its easy access to large emerging markets such as Brazil and Argentina - which are the main drivers.
Knowledge sharing
Joining Pharma.Aero is set to drive business and Guella says it is a firm believer in the value of knowledge sharing and a strong sense of community - essentially what it is all about along with creating standardised trade lanes. He explains: “Understanding local complexities, the underlying culture, the variance in terms of infrastructure, quality partners, climate, all these things drive the need to understand the supply chain from a global perspective, and in that sense we feel we can add value operating in the third largest emerging region in the world while being up to date with tendencies, benchmarks and innovation.” MVD is positioning itself as a pharma gateway into LATAM and Guella says it is easy to enter, has a convenient tax and legal framework, in a country oriented towards providing a lean supply chain, best-in-class information systems and infrastructure and the possibility to seamlessly enter the larger markets. He adds: “Global pharma players are currently distributing to South American major markets via MVD Free Airport, including cargo that is not inbound nor outbound by air. Our multimodal capabilities facilitate the development of tailored solutions to any distribution need, no matter how cargo arrives or leaves.
Vast opportunities
“Large pharma players are centralising purchase orders at MVD Free Airport, allowing for a smarter stock management, just-in-time replenishment based on having their safety stocks for the region based at MVD Free Airport.” The opportunities he feels are vast and Brazil remains the powerhouse market in terms of potential growth, while Argentina has recently reopened its markets to the world and both combined serve more than 200 million people. There are also smaller markets like Colombia, Chile, Peru, Paraguay and Bolivia, which Guella says are supplied from a distribution centre in Uruguay with significant benefits, not only based on logistic issues, but also based on taxes and transfer pricing management. “Many global pharma players are turning their eyes towards this region,” he notes.
8
ACW 23 OCTOBER 2017
aircargoweek.com
MVD is targeting more routes and Guella says it is currently working on developing a freighter route to Brasilia Airport in Brazil. “One of our roles is to consolidate the aggregate demand of different shippers with distribution needs in the region, helping to improve their supply chain management operating via MVD, and providing input to forwarders and airlines so new solutions are created,” he says. MVD is part of Corporacion America, a holding company operating 53 airports across LATAM and Europe and Guella says it is always looking for “synergies” to find solutions to specific needs. Developing infrastructure is high priority and with Phase 1 of its Pharma Hub project complete, it expects to operate at near full capacity during the peak season.
Land to develop
He says it expects to start working on the Phase 2 executive project shortly, and is developing projects tailored to strategic clients that have demanding requirements for pharma warehouses adapted for primary and secondary packaging activities. Guella says it has developable area of more than 250,000 square metres inside the airport premises, so there is vast potential. But is LATAM focused enough on air cargo? Guella says several countries are improving and increasing their professionalism, but there is still a lot of work to be done in terms of providing a “homogeneous context”. “There are different regulations, cultures, human capital issues, costs, infrastructure, information systems, and all of them together generate a highly complex scenario difficult to grasp for companies with distribution needs in the region,” he explains. Guella is optimistic for the LATAM region despite the largest economy Brazil underperforming so consistently. “Argentina appears to be bouncing back with a more liberal approach towards economic activity, while Mexico is growing, Colombia has been growing at high rates, Peru is doing very well and Chile maintains its historical consistency. “All in all, the region has been able to maintain reasonable growth rates even after the drop in the price of commodities, the main economic driver for over a decade,” he adds.
LATIN AMERICA
Efficiency drive at Rio hub Revenue rise for LATAM
A
new efficiency program is being run at Rio’s Tom Jobim International Airport after the first one it operated yielded positive results. RIOgaleão Cargo Logistics Efficiency Program helps importers to gain agility in their operations and it saw more than 100 companies participate in the first program from November 2015 and October 2016. The second stage is underway to further enhance the Brazilian airport’s performance. Importers with the best results are awarded a seal granted by operator RIOgaleão Cargo. A significant win was the reduction of the time spent in storage at Tom Jobim’s cargo terminal. From the 141 companies participating in the program almost 40 managed to reach a 50 per cent reduction in the time spent for cargo to be released. RIOgaleão Cargo director, Patrick Fehring says: “The goal is to show participants the bottlenecks across the process and seek together - importer and exporter along with the concessionary - solutions to improve performance. “This improvement also involves advising public agencies to improve the performance of the cargo release time.” The main sectors to benefit were O&G and pharmaceuticals, as important companies from these sectors were the ones that presented the best results in the import process and became even more efficient in the transactions between them, RIOgaleão Cargo and public agencies. The index used to reward the highlights of the year is measured by RIOgaleão by monitoring
the average time of the logistics process, from the arrival of the cargo at the terminal until delivery to the representative. The number of processes, the outcome of engagement and the improvement of the supply chain and importer procedures are also taken into account. The importer with the highest total score per segment, added to the rankings of each month, will be the winner. Awards for the most efficient companies of 2017 will take place in January of next year. In 2016, RIOgaleão Cargo handled 69,500 tonnes of cargo, including 32,400 tonnes of imports and 37,100 tonnes of exports. The main sectors served were O&G, the transportation/naval industry, pharma and medical equipment, the aeronautical industry and metal mechanics.
LATAM Airlines Cargo registered an increase in September with revenue tonne kilometres (RTK) rising 2.3 per cent. RTKs were up to 285 million and capacity in available tonne kilometres (ATK) was down 6.9 per cent to 501 million, helping load factors rise 5.1 percentage points to 57 per cent. In the first nine months of 2017 RTKs were down 1.3 per cent to 2.4 billion, though capacity in ATKs was cut by 8.2 per cent to 4.6 billion, pushing load factors up 3.8 percentage points to 53.7 per cent. In other news, LATAM has transported four alligators from Johannesburg to Miami, to their new home. The animals were transported via Sao Paulo in partnership with Aircross as part of an exchange programme between zoos in South Africa and the USA. They arrived at St. Augustine Alligator Farm Zoological Park in perfect condition using LATAM Cargo’s ALIVE service, one of the 11 care options offered by the portfolio the airline rolled out in 2016. Meanwhile, fellow South American carrier Azul Brazilian Airlines has been busy enter-
aircargoweek.com
ing a codeshare agreement with Ethiopian Airlines from 1 October this year. Azul’s alliances director, Marcelo Bento says the codeshare will be very important to strengthen its international presence. Ethiopian Airlines flies to more than 100 international passenger and cargo destinations in five continents, out of which 55 are in Africa. Azul, in turn, concentrates its two largest distribution centres in São Paulo (Viracopos) and Belo Horizonte with more than 200 departures to more than 80 Brazilian destinations. Azul has also sold ten ATR 72-600 aircraft to Nordic Aviation Capital (NAC). Cash from the sale is being used to reduce debt. Five aircraft are expected to leave the fleet by the end of 2017 and the rest in early 2018. The agreement with NAC also includes delivery of three new ATR 72-600 aircraft under operating leases in 2017. The sale of ten ATRs was already included in Azul’s 2017 and 2018 fleet plan of having 122 and 128 aircraft by the end of each year.
ACW 23 OCTOBER 2017
9
AIR CARGO AMERICAS PREVIEW
Industry flies to Miami to talk about cargo
T
op executives from the aviation, maritime and logistics industries will return to Miami for the Air & Sea Cargo Americas conference held from 1 – 3 November 2017. The Miami Airport & Convention Center will welcome top decision makers who will exchange views and experiences to enhance cargo growth across in the Western Hemisphere. The conference and show is designed to increase two-way cargo growth and international business in the Americas, present updates on the latest security and safety regulations, provide updates on international aviation, maritime and logistics issues, and report on Miami International Airport’s (MIA) expanding role as one of the certified pharmaceutical ports. The last show, which took place from 4 – 6
November 2015, welcomed over 4,000 international aviation and maritime executives from 51 countries, with 135 US and 16 international companies exhibiting. The show will be hosted by MIA, which is operated by the Miami-Dade Aviation Department and is the property of Miami-Dade County government. MIA is home to over 100 air carriers and is the top US airport for international freight. MIA and the General Aviation Airports’ annual economic impact is $33.7 billion. MIA and related aviation industries contribute to over 280,000 direct and indirect jobs, about one out of four jobs. The show organiser, World Trade Center Miami has been facilitating international commerce in Miami-Dade County for more than 25 years.
What does the future hold for the Americas?
THE first conference session, ‘Trade Trends in the Americas’, will start at 09.00h in the East Hall, where panellists will present their views on current trends, especially the effects of e-commerce on the supply chain and transportation, and their predictions for the growth of air and sea cargo in the Western Hemisphere for the next two years. The session will be moderated by Cuba Trade Magazine publisher and host of the Nationally Syndicated Radio Talk Show ‘Made in America’, Richard Roffman. He will be joined by SeaLand chief executive officer (CEO), Craig Mygatt; Estafeta international business manager, Diana Najera; UPS president for the Americas region, Romaine Seguin; and Atlas Air Worldwide executive vice president & chief commercial officer, Michael Steen, who is also president and CEO of Titan Aviation Holdings. The second conference session, ‘What will the Transportation and Logistics
10
ACW 23 OCTOBER 2017
aircargoweek.com
Industry Look Like in 3 – 5 years time?’ will get underway at 10.30h, where panellists will address the current impact of trade flows through air and sea ports, and try and predict what the future may hold. ABS-Consulting principal, Albert Saphir will moderate the session, and Miami Dade Aviation Department aviation director, Emilio Gonzalez (pictured); Panalpina regional CEO for the Americas, Frank Hercksen; PortMiami deputy director, Kevin Lynskey; and Florida Ports Council president & CEO, Doug Wheeler will give there views on new technology and innovations including how drones and driverless trucks could affect ports, how customs are coping, what ports are doing to use new technology, the effect of e-commerce and how ports are dealing with cybersecurity issues. At 15.00h The Boeing Company will issue the biennial World Air Cargo Forecast to provide an overview of the air cargo industry. Boeing Commercial Airplanes regional director for cargo market analysis, Gregg Gildemann will explain major trends and present future forecasts for the performance and development of markets as well as for the freighter aircraft fleet.
AIR CARGO AMERICAS PREVIEW
Pharma, perishables and compliance on the agenda
P
harmaceuticals and perishables are very important for Miami International Airport (MIA), and these will be major talking points at Air & Sea Cargo Americas. MIA was only the second IATA pharma hub in the world after Brussels Airport, undergoing International Air Transport Association (IATA) Center of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV) certification in 2015, ensuring pharma products are transported in accordance with global best practices. The first session on Thursday 2 November will be the ‘Pharma Air Shippers Forum: Meeting the Pharma Shipper’s Expectations’ at 09.00h in the East Hall. Miami Dade Aviation Department (MDAD) section chief aviation marketing, Jimmy Nares will moderate the session, while Novartis regional corporate affairs & communications head for Latin America and Canada, and Latin America Federation of Pharmaceutical Industry representative, Antonio Arce; Brussels Airlines vice president of global cargo, Alban Francois; American Airlines manager for cold chain strategy, Tom Grubb; Brinks Global Services director of life sciences, Leandro Moreira; MDAD chief of staff, Joe Napoli; Brussels Airport Company head of cargo, Steven Polmans; and Amerijet vice president of airport operations, Rasheme Richardson will share their views.
A transhipment hub
Perishables are very important for the ports in Miami, acting as a transhipment hub between Latin America and the rest of the world. The latest developments will be up for debate in the ‘Perishables Forum’ at 10.30h, where delegates will discuss new trends and distribution channels, and how the ocean-to-air transhipment program is affecting perishables. MDAD manager for aviation trade & logistics marketing, Emir Pineda will moderate the session, and will be joined by Cabal Foods general manager, Edgar Baldizon; Association of Floral Importers of Florida executive vice president, Christine Boldt; Florida Freezer president, Robert Fay; 21-Air director of business development, Rodrigo de Narvaez; CEVA Logistics vice president of global product development, Juan Carlos Serna; and Stavis Seafoods director of imports, Emily Stavis, who will give their opinions on the panel. Regulatory agencies serve to safeguard America’s borders while enhancing its global economic competitiveness by enabling legitimate trade and travel. The final session of 2 November, ‘Regulatory Compliance: Regulatory Trends and Compliance Issues’ will give delegates the chance to ask enforcement agencies how new regulations will affect business. Advance Customs Brokers & Consulting president, Pat Compres (pictured) will be moderating, and she will be joined by Agriculture and Prepared Products Center director, Dina Amato; US Department of Agriculture APHIS PPQ Field Operations national operations manager – exclusion and imports, Robert Balaam; Miami International Airport assistant port director for agriculture, Linda Cullen; Miami International Airport assistant port director for trade/ cargo operations, Kemisha Sherrell; CBP acting director for Miami C-TPAT Field Office, Brandie Tardie; US Food & Drug Administration director of the division of import operations and office of enforcement and import operations, John Verbeten; and US Department of Agriculture APHIS PPQ South Florida area director for Team Bravo, Louis Volpe.
aircargoweek.com
ACW 23 OCTOBER 2017
11
TEMPERATURE SENSITIVE
Pharma standards can help other cool chain sectors
A
ir France-KLM-Martinair Cargo (AFKLMP) is looking to learn from the way pharmaceuticals are now being handled and moved across the air cargo supply chain. Over the last few years, signficant investments have been made in operations, whether that is in pharma facilities, or improving processes and standards through CEIV Pharma, and traffic has shot up. AFKLMP Cargo director of fresh, Eric Mauroux explains: “We have a lot to learn out of pharma standards and to apply it to the fresh (perishables) business and cool chain. We are looking at providing the right solutions
like using blankets for fresh cargo and also looking at the throughput times and the processes.” He says the aim is to reduce the time it takes for shipments to be moved within the chain and spent on the tarmac and in warehouses. Mauroux adds: “At the moment we are looking at solutions to manage the throughput and we are working on how long we need to process cool chain and perishable shipments.” He says over the last five years AFKLMP Cargo has seen a 15 per cent rise in pharma traffic and a seven to eight per cent increase in perishables. Mauroux notes the perishables market makes up 15 per cent of air cargo volumes and pharma only three per cent of the air cargo industry. He explains the temperature sensitive market as a whole is “dynamic” and strong and he is excited by the prospects in the marketplace. Mauroux says the production of perishables
continues to be concentrated in Latin America (LATAM) and Africa and AFKLMP Cargo is leveraging its capacity into and out of the Netherlands and France. “Inbound traffic into the European Union from LATAM and Africa is seeing strong growth, mostly in fruit and vegetables,” he says. Mauroux adds: “One example is mangoes as there is a craze in Europe, it is a big commodity that keeps on growing every year while asparagus is also strong into Europe from Mexico.” He also explains there is strong demand from consumers for ready-made fruit across Europe and in other regions which is driving the sector. Mauroux notes AFKLMP Cargo is also seeing
strong exports from Europe, notably in salmon and other seafood fuelled by rising demand from North America, Asia and the Middle East. He explains that China in particular is importing more perishables as the country’s thirst for fresh produce, especially fresh fruit grows. As for flowers he says: “Demand for flowers into is not as big as it is for fruit and vegetables and has not grown to the same extent. There has also been a shift in production countries to countries with lower costs. Exports are mainly from Ecuador, Kenya, Ethiopia and Colombia, which are all very strong export markets.” Temperature sensitive freight is a key vertical and focus moving forward for AFKLMP Cargo.
Demand up at Wallenborn Transports
WALLENBORN Transports says it has seen continuous growth in demand for temperature controlled transportation since April this year. In May it expanded its fleet with 12 new bi-temperature trailers as it feels there is vast potential in this sector. According to MarketsandMarkets, the refrigerated road transport market is projected to grow at a CAGR of 5.67 per cent, in terms of value, from 2017 to reach a projected value of $17.82 billion by 2022. The European region is projected to have the largest and the fastest growing market share. The multi-temperature segment has the quickest growth when compared to single-temperature. The company says customers benefit from bi-temperature trailers through cost savings in using only one truck, when in the past two trucks would have been required for the same transport, as well as lower carbon emissions. In addition, this service benefits the cur-
12
ACW 23 OCTOBER 2017
aircargoweek.com
rent trucking capacity on the market, with demand higher than ever in Europe, and supply low. The road feeder service company explains laws that have come into force over the past year to enforce the European Union directive concerning the posting of workers has had a major impact on the market and there is a driver shortage which is something not predicted to change in the near future. Wallenborn views this as a challenge for all transports, not just temperature controlled ones. It operates a modern fleet of 62 ATP equipped vehicles that function within a constant temperature range of -25°C to +30°C, equipped with the latest temperature monitoring and reporting solutions. The firm says the “game-changer“ has been the integration of technologies enabling them to manage cold chains more efficiently. Through interfacing with their systems, customers can track the location and temperature of their shipments in real time.
TEMPERATURE SENSITIVE
Jettainer launches cool service to improve efficiency
T
emperature deviations in cool chain shipments is something every air cargo carrier wants to avoid and unit load device (ULD) company Jettainer has launched a new service to help its customers. ‘COOL Management’ was launched in September and is a service for temperature-controlled ULDs. It includes the leasing, management and positioning of ULDs as well as monitoring during the whole process. The Lufthansa subsidiary believes the service will increase efficiency across all parts of the supply chain, in a sector which keeps on rising. In addition, it feels it will reduce costs that can arise, through positioning, or overcapacity. Jettainer’s head of marketing & PR, Martin Kraemer, explains: “It was started from customer’s demand, since Jettainer’s existing as well as potential customers ask about cool ULDs. Plus, Jettainer aims to be the innovation leader in our field and therefore continuously analyses areas of value addition to an airline.” Jettainer is offering the service to all existing customers and potential ones, and, it also offers it as a single service to airlines, which it does serve with regular ULD management. Kraemer says existing ULD management customers will profit, as all ULD movements can be included in the steering and management service so all ULD services are dealt with by Jettainer. He says other airlines, who want to keep ULD management in house, could opt for ‘COOL Management’ only, as Jettainer would then deal with the cool ULDs only, which differ a lot from the steering of “regular ULDs”. Cool, or “temperature adjustable” ULDs are assigned individually to a specific shipment. Jettainer will manage the ULD not just by “type”, but by its specific number and each ULD will be independently steered and managed. There are three service levels - a full-scale COOL Management,
which includes order management with leasing provider to positioning, commercial trip and repositioning down to reporting and monitoring, generating billing-relevant data, and IT support. A part-scale model, which excludes the actual order management of the ULD with lessor and a compact model, covering repositioning and reporting/monitoring only. All these models have been developed with actual customer requirements and could be fine-tuned to specific airline needs. Kraemer notes there are extensive benefits to new or existing
customers, such as reduced demurrage fees, as it will monitor very closely when the ULD can be returned to the rental location. He adds: “Exact steering will significantly reduce costs, leading to better margins at the operating airlines. The business is, from a shipper (content) perspective, highly valuable – as expensive pharmaceuticals are being loaded in these ULDs. “By exact steering and reliable monitoring through Jettainer, all players in the logistics chain, airline, shipper, will gain an excellent reputation. Cool shipments are zero tolerance business. There is absolutely no room for error. “Furthermore, precise analysis of these leases will lead to improved leasing processes, increased customer satisfaction, reduction of claims or complaints and an increased image.” Jettainer recently secured a contract with Oman Air Cargo and Kraemer says its strengthens its position in the Middle East and is targeting winning more carrier contracts in the expanding ULD outsourcing market. He notes growth with existing customers due to fleet and network development is one of its growth pillars often overseen, compared to new accounts, but they are “equally important”.
Free delivery of Opticooler
DOKASCH Temperature Solutions has started free delivery in the US of the Opticooler – its ‘flying warehouse’ for temperature-sensitive air cargo. It will now be available to more than 20 air cargo carriers across the East Coast and Midwest from Boston to Minneapolis and D.C. to St. Louis, as well as on the West Coast from Los Angeles to Sacramento, Las Vegas and Phoenix. A large number of Opticoolers RAP (4 CP1-pallets) and RKN (1 CP1-pallet) are available for immediate use in the US. The Opticooler will be delivered from DoKaSch hubs to any location for a small handling fee.” DoKaSch runs a free delivery area in Europe. Apart from the free delivery zones, Opticooler units can be globally hired directly from a growing number of airlines.
Emirates pharma traffic rising LAST month marked the first anniversary of the launch of Emirates SkyCargo’s specialist product Emirates Pharma and the UAE carrier says it has handled more than 51,000 tonnes of pharma in those 12 months – valued at more than $11 billion. The Dubai-based carrier says it pharma product, which offers customers three levels to choose from – Emirates Pharma, Emirates Pharma Plus and Emirates Pharma Active – has been well received by customers across the world and this has resulted in a significant increase in the volumes of pharma. Pharma volumes transported between January and September 2017 grew by over 25 per cent when compared with the same period in 2016. Some of the main types of pharma transported include vaccines, medication for diabetes and cancer, and Active Pharmaceutical Ingredients (APIs). Emirates SkyCargo has also received a revalidation of the European Union Good Distribution Practices (EU GDP) certification for pharmaceutical operations at its hub in Dubai. The annual EU GDP surveillance audit for the revalidation was conducted by the German company Bureau Veritas.
aircargoweek.com
ACW 23 OCTOBER 2017
13
Tabloid page unbled.indd 1
13/09/2017 15:49
TRADEFINDER Airlines
Freight Forwarders
Turkey
India
Freight Forwarders Caribbean
Freight Forwarders
Denmark
Hong Kong
Industry Events
United Kingdom
Freight Forwarders USA
aircargoweek.com 15 23 Oct 2017.indd 1
ACW 23 October 2017
15 18/10/2017 12:03
Tabloid page trim.indd 1
13/09/2017 14:59