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The weekly newspaper for air cargo professionals Volume: 19 Issue: 38 26 September 2016
Emirates SkyCargo unveils DXB SkyPharma hub
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he pharmaceutical race in the Middle East is on and Emirates SkyCargo is aiming to be the main player - as it unveiled its new pharma facility at Dubai International Airport (DXB) on 18 September. The carrier joins Etihad Cargo and Qatar Airways Cargo in growing its pharma facility offering. The air cargo pharma market is growing at around 8-10 per cent a year, while global pharma sales passed the $1 trillion mark for the year in 2015 and are set to reach $1.3 trillion by 2018. His Highness Sheikh Ahmed bin Saeed Al Maktoum, chairman of chief executive of Emirates Airlines and Group, cut the ribbon to mark the opening of the Emirates SkyPharma facility. It covers 4,000 square metres and is part of an 11,000 square metre extension project costing 600 million Emirati Dirham ($165 million) at the carrier’s SkyCentral terminal, bringing its dedicated pharma space across DXB and Dubai World Central (DWC) to 8,600 square metres. The new DXB facility has tem-
perature-controlled zones for two to eight degrees Celsius and 15-25 degree Celsius, 88 temp- controlled individual positions in the automated ULD handling system and five temp-controlled acceptance and delivery truck doors. Emirates SkyCargo has also been awarded the certification of compliance under the European Union Good Distribution Practice (GDP) guidelines for medicinal products for human use by German auditor – Bureau Veritas. The carrier becomes the first in the world to obtain GDP for its hub operations covering two airports – DXB and DWC - and the 24/7 bonded trucking service that con-
nects cargo between them. Emirates is also working on new specialist services within pharma standard, advanced and premium - to suit different customer needs. Divisional senior vice president for cargo, Nabil Sultan said: “Pharmaceuticals are one of most important products we transport because of the impact on people’s lives and communities across the world. We decided it was not only important for us to build state-ofthe-art cool chain facilities for the transport of pharma products, but also go the extra mile and ensure the compliance of our operations against the highest international standards.”
Sultan says it is set to lead to an annual uplift in pharma of around 20-25 per cent. In 2015, it handled 11,000 tonnes of pharma. He added: “I see an opportunity to grow much faster than that with the opening of these facilities and the investment at DWC we are ideally positioned.” Sultan says Emirates opted for GDP rather than the International Air Transport Association’s Center of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma) as it was what “customers wanted”. Sultan says it plans on creating standardised end-to-end pharma trade lanes to destinations where there is high demand, which will take at least a year. Sultan noted the strongest pharma trade lanes are to Europe, from Switzerland and Germany and on to Asia, which makes up 50 per cent of activity, while the India to US lane makes up around 30 per cent. Top pharma goods the carrier moves includes critical medication for diabetes and cancer, active pharmaceutical (APIs), blood derivatives and vaccines.
IAG Cargo says its Prioritise product grew by 32 per cent in 2015 and Constant Climate by 44 per cent. In addition, IAG Cargo will launch its emergency shipment
service, Critical on 3 October. Shipments will be classed as non-off loadable and guaranteed to fly. Commercial director, David Shepherd comments: “We understand the pressure our freight forwarders and supply chain partners come under when a customer demands that a shipment must move that day. “Until now we have not had a product that fully satisfies this unique need, with short cut off times and non-off loadable status, we can now meet the exact demands for shipments that simply must fly.”
New premium facility and emergency service for IAG Cargo
IAG Cargo is to construct a new £55 million ($71 million) premium facility at Heathrow Airport and is launching its emergency shipment service, called ‘Critical’. The new building, due to be operation in 2018, will be twice the size of the existing Premia facility and it will have a larger dedicated Constant Climate Quality Centre for pharmaceuticals, a new delivery and collection doors and an advanced warehouse management system. IAG Cargo chief executive officer, Drew Crawley says: “With the continued growth of high speed
e-commerce and cool chain logistics in particular, as well as the ongoing expansion of the IAG family and network, we need facilities that are ready for the next generation of premium freight.”
CARGOLUX APPOINTS ZEHREN TO KEY ROLE ABC MAKES SEATTLE ITS 6TH US FREIGHTER ROUTE standardise airport processes TECHNOLOGY AND INFRASTRUCTURE UPGRADES
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FAA bans recalled lithium battery shipments THE Federal Aviation Administration (FAA) has banned cargo shipments of recalled or defective lithium batteries and lithium battery-powered devices following the recall of Samsung Galaxy Note 7s. Samsung is recalling Note 7s following a number of battery fires around the world, with airlines advising passengers not to turn on or charge the devices on board aircraft and not to pack them in checked luggage, while cargo divisions have been refusing to accept shipments over safety fears. The FAA has issued a Safety Alert for Operators (SAFO) to make sure airline staff and cargo customers are aware of the rules has included information and guidance about damaged or recalled lithium batteries and devices, which says: “The SAFO notes that the hazardous material regulations do not preclude an airline from proactively placing its own restrictions on carrying or using specific lithium battery products on board aircraft, prior to an official government recall or advisory.” A number of carriers including Finnair Cargo and Qantas Freight and American Airlines Cargo have prohibited carriage of shipments of Galaxy Note 7s citing International Air Transport Association Dangerous Goods Regulations.
aircargoweek.com
NEWSWEEK
TNT Express integration on track for FedEx
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edEx has seen total revenue increase by $65 million to $14.66 billion, while net profit rose 3.3 per cent to $715 million in the first quarter (Q1) of the 2017 fiscal year, ending 31 August. TNT Express didn’t add any profitability in Q1, but it did contribute an additional $1.8 billion in revenue. FedEx Express revenue increased 1.1 percent to $6.6 billion on improved base yields, higher package volume and increased freight pounds. The FedEx Freight segment saw revenue rise four per cent to $1.66 billion, up from $1.6 billion in the same quarter last year. The integrator says the full integration of TNT should take four years and will result in $750 million in annual savings. FedEx chairman, president and chief executive officer, Frederick W. Smith says: “The integration of TNT Express is pro-
ceeding smoothly, and the level of team members’ engagement is outstanding. “Managing our operating companies as a portfolio of customer solutions helped FedEx achieve strong financial and operating results in the quarter, especially given the global economy’s continued low growth.” FedEx expects to get a boost globally from the $4.8 billion TNT Express deal. It incurred $68 million in TNT Express-re-
lated integration costs, along with an additional $28 million in intangible asset amortisation expenses in Q1. FedEx executive vice president and chief financial officer, Alan B. Graf explains: “Our team is extremely excited about the TNT Express integration, and we are discovering many possibilities for achieving high returns. “As we integrate these networks and take advantage of the unmatched road capabilities of TNT Express, I am confident there is going to be a tremendous opportunity to increase the earnings of FedEx Corporation.” As previously announced, effective 2 January, 2017 - FedEx Express will increase shipping rates by an average of 3.9 per cent, while FedEx Ground, FedEx Home Delivery and FedEx Freight will increase shipping rates by an average of 4.9 per cent.
New Jakarta hub for DHL DHL Express has opened its two million euro ($2.2 million) Jakarta Gateway 530 at Soekarno-Hatta International Airport following years of sustained growth. The 1,353 square metre facility can handle up to 20 million kilogrammes of shipments and two million per annum. It adds to the existing Jakarta Gateway 510. DHL Express Asia Pacific chief executive officer, Ken Lee says: “Our new Jakarta Gateway 530 will enable local businesses to trade seamlessly with customers around the world. SMEs play a vital role in the Indonesian economy, contributing close to 58 per cent of GDP and Indonesia remains a key pillar in supporting South East Asia’s economic growth. This new facility allows DHL to continue supporting the growing export and import needs in Indonesia by providing greater access to international markets.” DHL says the airside location provides air access and focuses on export and formal import processes with inhouse customs.
Miami office opened by AMI AMI has opened a new office in Miami, and established a strategic partnership with a wholesaler in the region covering ten South American countries. AMI Miami will serve the local airfreight agent community - as well as acting as the control centre for transhipments between AMI’s US and global networks, and South America. AMI’s new strategic partner is Craft Group - a Brazil-based neutral ocean and airfreight wholesaler. Craft will handle and clear AMI imports to these countries, as well as selling AMI’s global network of direct and via Miami services. AMI vice president for the USA, Mike Pattinson says: “We are tremendously excited about the potential for our new office in Miami, and this new alliance with Craft. Miami is a cost-effective gateway linking South America with the USA and the world, but it demands a solid presence on the spot to manage the transhipment process. AMI now has that presence. “Meanwhile, Craft Group is one of very few other truly trade-only wholesalers in the world, and so enables AMI to maintain the integrity of its neutral business model. “Craft is the ideal complement to AMI’s existing global network: they are as strong in South America as AMI is in other regions.”
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Sri Lankan plans to lease ‘45-tonne’ freighter
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riLankan Airlines plans to make the most of overcapacity in the sector by leasing a freighter to tackle its own ‘big time’ capacity problems. SriLankan is looking for ‘a 45 tonner’ Chamara Ranasinghe, head of cargo tells Air Cargo Week adding that a converted Boeing 747 would be “too big.” The Colombo-based carrier already has a converted MD82 as well as twenty two passenger aircraft to help it move goods but is looking to add one more freighter to help it move larger loads, Ranasinghe adds. This could be soon and could lead to other freighters being acquired. “Induction of the freighters is the timeline,” he says, adding that it was “pushing for something before November”. “What we are trying to do is have two or three freighters and regional uplift and connectivity,” said Ranasinghe. The precedents he pointed to was what TNT Express does in Europe and
New products for LATAM
Turkish Airlines general approach only Sri Lankan aims to do it “for the Indian subcontinent,” he adds. Currently SriLankan uses its MD82 to supplement the capacity it gets from its twelve narrowbody passenger aircraft which serve the Asian market and is looking to repeat that. Another reason for focusing on the region is money. Endebted SriLankan is giving up two of
its three European routes, Paris and Frankfurt, to concentrate on its own economic hinterland - as part of an ongoing restructuring. “Our future is going to rely around China, Sri Lanka, India, Bangladesh. Basically around ASEAN the Far East and the Indian subcontinent. “This is where we want to monopolise if we can. We believe we are located in a good place,” Ranasinghe explains.
NEWS WEEK WorldNews WWG Consolidators has been appointed Pakistan member for independent freight forwarder network The WACO System. Karachi based WWG, which was founded in 2008 and also has operations in Lahore, Sialkot, Islamabad and Peshawar, offers global logistics services including airfreight, warehousing, customs clearance, multimodal freight transport and packaging. AIRBRIDGE International Agencies (AIA Cargo) has won two general sales and service agent (GSSA) contracts. The GSSA will sell cargo for Aerolineas Argentinas on services into the UK and Ireland and also for Turkish carrier Pegasus Airlines on services it operates into Austria. Both contracts started on 1 September.
LATAM Cargo has upgraded its product portfolio, offering customers up to 19 combinations to specifically address customer’s shipment needs from 1 October. The portfolio, which offers services including PHARMA for pharmaceutical products, ALIVE for live animals and EXPRESS for urgent shipments, will initially be made available for cargo originating in North America and Europe, while implementation in South America will take place gradually and be concluded during the first quarter of 2017. There will be 11 care options and three services, which LATAM says, cater for specific needs of each and every shipment. LATAM Cargo chief executive officer, Cristián Ureta says: “The new portfolio ensures consistent delivery throughout our entire international network. The system allows us to control over each shipment and execute continuously the promise of each product as well as generate data for quality management.”
Strong month in August for HKIA
HONG Kong International Airport (HKIA) had a strong month in August with transhipments and trade with Europe and Taiwan giving it a significant boost. Cargo rose by 3.6 per cent to 374,000 tonnes in August with transhipments increasing 11 per cent year-on-year. Year-to-date volumes are up 0.5 per cent to 2.84 million tonnes and on a rolling 12-month basis, cargo increased by 0.4 per cent to 4.39 million tonnes. HKIA has welcomed a number of new services such as five flights a week to Vienna operated by Austrian Airlines and four Cathay Pacific flights a week to London Gatwick Airport. Hong Kong Airlines has started twice-weekly services to Yonago in Japan and American Airlines is now offering daily flights between Hong Kong and Los Angeles. Airport Authority Hong Kong airport and industry collaboration general manager, Henry Ma says: “This month we welcomed the non-stop flight service to Vienna, enhancing our airport’s reach to this important hub for Central and Eastern Europe. The additional connectivity will further strengthen HKIA’s status as an international aviation centre.”
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NEWSWEEK More transparency and collaboration needed in the cool chain
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ertinent issues in the cool chain sector came under the spotlight at the Cool Chain Association’s (CCA) 4th Pharma and Biosciences Conference in Dubai from 19-20 September. Delegates at the JW Marriott Marquis heard from a range of speakers during the two-day event with much debate focusing on the need for transparency and collaboration in the air cargo supply chain for cool chain shipments. CCA chairman, Sebastiaan Scholte opened by
urging more transparency: “If you look across the supply chain we all like to blame each other and when shipments are lost - it is the customers’ fault or it is the airline’s fault – it is always someone else to blame.” The chief executive officer (CEO) of Jan de Rijk Logistics, added: “If we open up we not be afraid to be blamed. We should be open about it and we have to have an open discussion. “We need more a collective trust in the air cargo supply chain.”
The panel discussion on the first morning saw focusing on addressing the temperature challenge with panelists from different parts of the supply chain giving their views. On a positive note, in the view of Expeditors global director for healthcare, Andrew Lester airlines are “far more sophisticated” in handling cool chain goods than their sea freight counterparts. However, Lester also said he felt there was still an issue with “who talks to who” in the air cargo chain while there also needs to more communication within the chain. There was a general consensus that the most difficult part for air cargo in cool chain shipping is the destination of goods. Speaking from the floor, Cargolux’s global product manager for healthcare and perishables, Stavros Evangelakakis and CCA board member, said there should be more time spent thinking about the destination. He explained: “Sometimes the requirements are so high, but we cannot fulfill – like into some parts of Africa for vaccines etc. We still have
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the same problems with destination. There are many airports that do not have GDP and CEIV and we are lucky if we have cargo handling, but the goods still need to be shipped there.” Evangelakakis also said the headache of shippers in the past is airlines made promises they cannot keep, while he also pointed out pharma is important, but so are perishables: “Should I stop bringing perishables because there is not as much yields as pharma?” From the shippers’ perspective was Johnson & Johnson senior manager for temperature control in EMEA, Gino Vleugels who was a panelist, and called for the supply chain to work together more and urged more dialogue with shippers from forwarders and airlines. And Karavan Consulting CEO, Therese Puetz who was also a panelist, said collaboration was “the key” to a better cool chain along with taking the “community approach”. Lester agreed it was all about more collaboration: “We have to collaborate to ensure we talk. And everyone has to take responsibility (for their roles) in the supply chain.”
Cargolux appoints Zehren to key role CLAUDE Zehren (pictured) has been appointed by Cargolux Airlines International as executive vice president and nominated person flight operations by the board of directors. Zehren, who has been at Cargolux for 18 years as both a pilot and a member of the management strategy, took over from his predecessor, Jason Holt on an interim basis on 1 September. Holt, Zehren’s predecessor had joined from the low cost carri-
er easyJet in 2015, where he ran the Gatwick Airport division and led its operational strategy & transformation business changes. Commenting on his new role, Zehren says: “I’m excited to take on this challenge. Cargolux pilots have always strived to deliver the highest standards in operation and safety. Their spirit and motivation is unparalleled and I am very much looking forward to continue my work with these colleagues in my new position.”
CargoXS teams up with CHAMP CHAMP Cargosystems has partnered with CargoXS to provide its Cargo Quality Center service designed to offer clients real-time warehouse work progress monitoring for airlines and ground handlers. CargoXS’ product, which it introduced in early 2015 enables airlines and ground handlers to monitor physical and administrative processes in real time in what it describes as “a user-friendly environment, eliminating unneeded administration efforts”. It also says Cargo Quality Center enables airlines to have real-time knowledge of their ground handling partner’s performance and allow all partners to work more efficiently to meet demand and deadlines. CHAMP Cargosystems global sales and
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marketing, Nicholas Xenocostas says: “It is a natural fit for our two companies to come together in this way. Tailor made services like reporting, screen changes, special processes can be executed by CargoXS to further fulfill our clients’ need.” CargoXS managing director, Walter Kruger adds: “The core values the Cargo Quality Center represents; real-time, no fuss, and no overhead are now enhanced further by the ability to bundle it with customers’ existing products. The Cargo Quality Center is a great match for existing CHAMP customers, as it complements the functionality already present in the current systems with very little overlap, making this a perfect collaboration for us.”
NEWS WEEK
ABC makes Seattle its 6th freighter route in the US
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irBridgeCargo Airlines (ABC) has launched twiceweekly Boeing 747 Freighter services from Moscow to Seattle-Tacoma International Airport - its sixth route within the US. The carrier says Seattle is not only one of the biggest cities in the Pacific Northwest region – but it is also a major gateway for trade with Asia. The new flight from Seattle will continue on to Chicago before returning to Europe and Moscow, providing ABC’s customers with direct connections to all of the points in ABC’s international route network via its Moscow Sheremetyevo Airport hub. ABC’s vice president for North and South America, Hendrik Falk (pictured), says: “For the last couple of years we have significantly grown AirBridgeCargo’s footprint in the USA in response to customer needs and the ever-changing market environment. “We are excited to have added Seattle to our network and can now provide our customers with an even greater choice of options to and from the US. We expect our new Seattle service will enjoy strong support from customers transporting a wide vari-
ety of products, including aerospace components, machinery, fish, seafood and other perishables. “As an all-cargo operator, it is always rewarding to see airports that were previously mainly passenger oriented turning their attention towards cargo carriers. We have witnessed Sea-Tac’s commitment to supporting cargo operators and it is no wonder that the airport is gaining a much more prominent profile with cargo operators. We are proud to be adding Seattle to our growing network.” Port of Seattle commission president, John Creighton
explains: “The Port of Seattle is proud to play a key role in the strong relationship AirBridgeCargo has with so many of our Pacific Northwest business partners. “AirBridgeCargo will expand Sea-Tac’s global reach with new direct freighter services to Moscow and Amsterdam. This will be a boost to our regional economy as these new export options are now easily accessible.” The new Seattle service extends ABC’s existing network in the US. It already operates 747F services to and from Dallas, Atlanta, Houston, Los Angeles and Chicago.
Welsh urges runway decision
THE importance of Heathrow Airport for UK imports and exports has been highlighted by the Freight Transport Association’s (FTA) director of global and European policy, Chris Welsh. He has stressed the need for an urgent Government decision on a third runway at Heathrow. UK Prime Minister, Theresa May is set to make a decision in the autumn on whether Heathrow is expanded, as recommended by the Airports Commission. A Cabinet committee is set to be named soon to come to a decision. Welsh says the Brexit vote makes connectivity to new and emerging markets all the more pressing: “The Government must now follow the recommendation of its own inquiry and back a third runway at Heathrow. Without it, the UK will irreversibly fall behind competitors such as Schiphol, Charles de Gaulle and Frankfurt, and much of the airfreight market will over time transfer to these continental airports.” The FTA says airfreight accounts for around 40 per cent of the UK’s imports and exports by value with high-end manufacturing industries such as pharmaceuticals, automotives, mobile telephones and jewellery dependent on Heathrow and additional capacity is vital to meet growing demand for connectivity to emerging markets in Asia, the Indian sub-continent and South America.
Air cargo rising at logitrans QATAR Airways Cargo is among the new exhibitors at this year’s logitrans being held at the ifm Istanbul Expo Center from 16-18 November - as the air cargo section continues to grow. The international transport logistics event is being held for the 10th time and it has established itself as a key fixture for Eurasian management decision makers across the supply chain. Logitrans comes as Istanbul gets set to open the biggest gateway in the world - known as Istanbul New Airport which is set for operation sometime in 2018. The new hub is set to provide a significant boost to logistics into Turkey and the region for domestic and international firms. Other exhibitors in the airfreight section are Lufthansa Cargo, MNG Airlines, Pegasus Cargo, and Turkish Cargo. Visit www.logitrans.com for more information. Exhibitor stands are still available, email sales@azurainternational. com for further details.
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EUROPEAN AIRPORTS Million tonnage mark set set to be passed for first time
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eipzig/Halle Airport is well on the way to passing the one million tonnage mark for the first time in 2016 – fuelled by growth in the express and charter sectors. In the first eight months of the year, cargo volumes grew by 6.4 per cent to around 680,891 tonnes. In August, the gateway posted a nine per cent uplift to 81,701 tonnes, compared to the same month in 2015. Mitteldeutsche Airport Holding board spokesman and managing director of Leipzig/ Halle Airport, Johannes Jahn, explains: “Fortunately, the positive trend is continuing for the 12th year in succession, which underlines our expectations that we will be able to exceed the one million tonnes mark this year for the very first time.” Jahn is a member of the steering committee of the German Airports Association and will
head up the association’s newly founded specialist committee for airfreight and logistics from 1 January 2017 onwards. Leipzig/Halle is the largest handling site in Germany for express freight and Jahn says it continues to provide significant growth figures, while the freight charter traffic - and particularly for outsized cargo - is also developing in a very positive manner. He notes the number of movements provided by Antonov 124 aircraft was around 280 by the end of August, which is significantly higher than the figure for the whole of 2015. In Jahn’s view there are challenges in the German air cargo market, but the main one he feels, is there is still a huge need for the Federal Aviation Office to optimise its procedures for granting permits for cargo charter flights. He explains: “When directly compared to other European nations, like the Benelux coun-
tries, for example, this procedure takes too much time. We believe this represents a clear competitive disadvantage for Germany as a business centre. “On the other hand, we see opportunities, for the Leipzig/Halle site, in the development of our company in the direction of becoming a full provider of logistics services, which maps the complete supply chain for airlines, shippers and freight forwarding companies to the same degree or provides just modular elements, depending on what is required.” Jahn says the spectrum of services at Leipzig/ Halle ranges from ‘origin to destination’, including preparing a consignment at the customer’s premises, to picking up goods, completing the paperwork and providing transportation and even delivering the items to their destination, including the provision of any necessary customs clearance. Leipzig/Halle will soon welcome more air
cargo infrastructure and a 400 square metre refrigerated facility to be called the World Cargo Center will be opened at the end of 2016 - operated by the gateway’s subsidiary PortGround, a services company for all kinds of freight and aircraft handling. Jahn says: “The World Cargo Center connects the airside and landside areas under one roof and enables short handling times thanks to its direct access to the apron area, street to plane is 100 metres.” Leipzig/Halle looks odds on to go from strength-to-strength and Jahn is optimistic that new charter chains will be routed via the airport in the fourth quarter this year. He adds: “Pakistan International Airlines, according to its own statement, is also planning to operate scheduled flights from Pakistan to New York via Leipzig/Halle from 2017 onwards, which would open up fresh potential in the belly cargo sector.”
MAG airports boosting UK economy
THE Manchester Airports Group’s (MAG) Corporate Social Responsibility Report for 2015/16 says the Group’s four airports delivered £6.2 billion ($8 billion) worth of economic value for the UK economy and for the communities in which they operate. MAG says the 16 per cent increase comes on the back of its most successful year ever and its gateways also reduced their environmental impact, most notably through a 15 per cent fall in carbon emissions and a 41 per cent cut in the number of registered noise complaints. And at the four airports, MAG says there were also no recorded breaches of air quality limits, set by the Civil Aviation Authority. Across East Midlands Airport (pictured), Manchester Airport, London Stansted Airport and Bournemouth Airport, the Group says from the £6.2 billion in economic activity - every £1 the Group earned in revenue, economic activity worth another £8 is gener-
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ated in the wider economy as a result. MAG says Manchester contributes £1.9 billion each year to the North West’s economy, up 28 per cent since 2013 driven by a growth in new routes and long haul traffic. For the UK, it contributes £3.2 billion to the economy and supports 48,200 jobs locally. Stansted contributes £1.2 billion each year to the Eastern economy and supports over 20,000 jobs. Nationally, it contributes over £2 billion to the economy. Together, East Midlands and Bournemouth contribute £330 million to their local regions and nationally, over £700 million. Over 39,000 people work at MAG’s airports, contributing £3.4 billion at a local level to regional economies. Taking into account jobs in the supply chain and supported by wages earned in relation to the airports, this rises to 124,000 across the UK.
EUROPEAN AIRPORTS
Asian trade lanes keep Malpensa moving on up
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ilan Malpensa Airport now has a 56 per cent market share of the Italian airfreight market and this year it has continued to grow. In the first eight months of 2016 tonnage is up 4.5 per cent, following on from the nine per cent total uplift in both 2014 and 2015. The gateway says 2016 is “above expectations” and is due to the positive trend of export flows, the recovery of cargo volumes from road feeder services and investment made by DHL. In 2016, trade lanes with Asia are growing the fastest, despite the slowdown of the Chinese economy and traffic to/from Asia grew 10 per cent from January to August, led by Tokyo (+17 per cent), Singapore (+16 per cent) and Hong Kong (+7.5 per cent). Malpensa officials put this down to most Italian export goods being in the high price and luxury sector, which are less influenced by GDP changes as they are destined to high spending consumers. European trade lanes have still the greatest cargo market share at the airport (26.1 per cent) despite the majority of shipments not terminating in European countries, but are transiting through the main European hubs to others around the world. The Middle East represents 26 per cent of cargo, but this year
Standardise airport processes
there has been no growth. Traffic to/from North America is going well the airport says, showing an increase of 1.7 per cent. Strong traditional Italian exports are performing well such as (clothes, garments, shoes, and cars) while a more positive and stable economic situation is encouraging the import flows in particular - semi-finished products from Asia and perishables. The airport says investments made last year by two cargo handling companies to improve facilities and processes dedicated to
pharma makes it confident this sector will grow. Malpensa is making process more efficient as feels a better image about Italian import processes inside the airport will certainly help to boost flows. A new ICT system will soon be available for airfreight operators at Malpensa allowing them to share data on departing and arriving cargo among all interested parties. This cargo community system, ‘Malpensa Cargo Smart City’, it says will add a useful enhancement to upgrade Malpensa operations and make processes more efficient for delivery and pick up, avoiding errors and time losses. New infrastructure is coming and FedEx will open a new warehouse by the end of 2016. A second 15,000 square metre warehouse will be ready for summer 2017 - rented to new cargo handlers (WFS and Beta Trans). A third 15,000 square metre warehouse will be the new site for DHL Express, which will open in 2018 as part of a 90.2 million euro investment. The airport notes in a slow market the industry needs to be more efficient especially in Europe, where competition with Middle East carriers is strong: “The electronic air waybill (e-AWB) and other technological improvements have to be extended as far as possible to cover the whole air cargo market in a short time.”
COLLABORATION is the buzz-word in air cargo and Cargonaut certainly believes it is key in Europe. Chief executive officer (CEO), Nanne Onland (pictured) says Amsterdam Airport Schiphol is looking to cooperate and collaborate between airfreight hubs on important trade lanes. He notes this means in most cases airports outside Europe, as Schiphol already collaborates with other cargo community systems and platforms worldwide and recently joined the International Port Community Systems Association. But Onland feels there should definitely me more cooperation and collaboration between airports in Europe: “Airports today do not play a visible role in air cargo. I think they have a key role to play in orchestrating the cargo to and from the hubs. I also believe digital infrastructure should be core business to airports. And therefore collaboration between airports will be necessary. “If you look at critical digital infrastructures there are hardly any. It is all very fragmented. Our dream is that each airport has their own platform on which local stakeholders collaborate and that the platforms between the airports are standardised and connected.” Onland says this can improve air cargo efficiency and notes he has heard an airline CEO say money is being earned on the ground - airports can make the ground process more efficient and put more effort in high quality ground processes and data quality – “then the turnaround of cargo or the throughput of cargo at airports can be improved”. Schiphol is working with Heathrow, Frankfurt, Brussels, and Vienna to look at airport KPI’s to measure the quality of handling and performance of hub infrastructures. Onland says with those KPI’s you can compare the airports. A thriving air cargo community is key to upping efficiency and processes and at Schiphol initiatives such as eFreight, eLink and the Milkrun were developed via it, creating new business models, transparency and visibility for the chain. Onland says: “Schiphol used to facilitate the dialogue locally. Now it is more and more taking an active role. To boost air cargo efficiency and processes has been a policy for a long time. It is just another approach and a more active role for the airport operator.” Standardised processes across Europe would boost business in his view: “There are many processes that do not create competitive edge for the individual player, but can do in collaboration with others. “And that you have a standard interface. A set of standard procedures for handlers is in the interest of forwarders and airlines. Yet, even with the standardisation, the handler still creates his own competitive edge outside of the standards. “It saves tremendous costs and increases tremendously predictability if things become more standard in certain ways. This is to the benefit of airports.”
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US EAST COAST
Technology and infrastructure upgrades for American
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merican Airlines is expecting a solid but competitive end to 2016 as it continues to focus on improvements on tools, aircraft and its network, managing director – cargo sales East, Linda Dreffein (pictured) tells Air Cargo Week (ACW). She says American has been coping well in a challenging market, helped by the strength of its network and fleet upgrades to meet cargo customers’ demands. The fleet upgrade includes 70 Boeing 777s and over 20 Dreamliners. Dreffein says American will be focusing on infrastructure and technology enhancements across the network. She tells ACW: “We’ve invested in new ground service equipment at several stations so we can be even more efficient and, at a global level, expanded our eAWB programme for all international shipments and
announced brand new routes (that have great cargo capacity) we’re really excited about.” American has a large cargo presence on the East coast with hubs at New York John F. Kennedy International Airport, Philadelphia International Airport and Charlotte Douglas International Airport. In addition, it also has a strong presence in cities such as Boston and Atlanta where it also offers extensive trucking options to hubs. It handles a wide variety of goods across the region including seafood, art work, pharmaceuticals and machine parts. In June 2015, American opened a dedicated pharma facility in Philadelphia, which Dreffrein says has been a great success. She tells ACW: “We have built a reputation with our shippers for expert handling, monitoring and movement of our temperature-control
cargo, especially from and through Philly, where we have one of the biggest pharma markets in the world. “We provide tours of the facility for our customers so they can not only see how we handle their shipments, but to show them how confident we are in our cold-chain programme and how dedicated we are to ensuring a top-of-theline experience when working with us.” In challenging market conditions Dreffein is
confident that American can continue to exceed customers’ needs through relationships and its network and fleet. She adds: “The East coast stations offer extensive flight schedules to Europe, Latin America and other domestic points across the US, using some great aircraft, including the Boeing 777s and the Airbus A330s, we have the options, frequency and capacity to provide great, reliable service for our customers.”
Extra Newark Puerto Rico pharma flights
United Airlines and DHL Global Forwarding are expanding their partnership in Puerto Rico to grow its pharmaceutical and life sciences industry with more flights and cold chain storage upgrades. Under the partnership, United will increase services from New York’s Newark Liberty International Airport to San Juan’s Luis Munoz Marin Airport from one a week to six using a Boeing 777. The flights serve to increase demand for moving temperature controlled shipments by air as well as adding widebody flights between New York and San Juan when they start on 18 December. DHL will divide its 5,616 square foot warehouse in San Juan into three independently operated cold chambers with a combined capacity of 324 pallets using single pallet racks or 486 pallets on double deep racks. Each of the three chambers will operate
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at 15 to 25° C (59 to 77° F) and have 100 percent redundant refrigeration systems. The chambers will also have a hot gas injection system to maintain required relative humidity levels during operation. DHL Global Forwarding head of sales & marketing for DHL Temperature Management Solutions, Frank Cascante says: “Pharmaceutical companies have increasingly invested in Puerto Rico over the years, and they need a strong global network and cold chain infrastructure to handle their delicate medicines and pharmaceutical products.” United Cargo vice president of Sales Americas, Jim Bellinder adds: “By expanding our TempControl service for temperature-sensitive patient care products into San Juan - United is improving the lives and health of people in Puerto Rico and around the world.”
US EAST COAST
Charlotte Douglas ideally positioned for growth
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harlotte Douglas International Airport (pictured) is ideally positioned to grow helped by intermodal transport links and Foreign Trade Zone (FTZ) designation, economic affairs manager Stuart Hair tells Air Cargo Week (ACW). He says Charlotte’s location in North Carolina means it can serve Southern, Central and East-West logistics corridors. Charlotte is also connected to two major rail systems linking 27,000 miles of track and the Norfolk Southern Railway’s Charlotte Regional Intermodal Facility located at the airport is capable of 200,000 lifts annually and is compatible with aviation operations. Hair says: “It is the only intermodal facility operating between two active runways with the ability to seamlessly link freight operations by air, rail and truck with access to seaports.” Hair also says: “Charlotte Douglas International Airport is poised to have significant
impact on international trade. The Charlotte region is home to Foreign Trade Zone (FTZ) #57 and the Airport is the region’s permanent magnet FTZ #17 site.”
Exports rise 8.8% at PHL
Charlotte, Hair adds, offers also benefits including a strong partnership with Customs and Border Protection as well as competitive landing fees of $0.89 per 1,000 lbs.
He says: “Charlotte Douglas International Airport is one of the best operated air transport facilities in the country, maintaining quality service and a competitively low fee structure.” At present, Charlotte does not have any cargo facility expansion plans having recently expanded the cargo ramp but it is working on its Destination CLT programme. Hair tells ACW: “The airport is home to the CLT Air Cargo Center which has approximately 570,000 square feet of facilities and ramp space. The airport recently completed expansion of the Airport’s cargo ramp. The ramp was expanded by 12,000-square yards to provide additional space to potential clients. “We are in the midst of Destination CLT, a $2.5 billion development programme that includes passenger terminal expansion, additional gates, roadway improvements, and a proposed new runway.”
Exports at Philadelphia International Airport (PHL) (pictured) have grown on average 8.8 per cent annually over the past five years as it handles increasing amounts of international cargo. The four-runway airport in Pennsylvania, which serves as a major international hub for American Airlines and a regional hub for UPS, primarily caters for the domestic cargo market, though international volumes are growing. In 2005 78 per cent of cargo was domestic and 22 per cent international but the split is now 70/30 domestic/international. PHL tells Air Cargo Week: “Overall, total exports through PHL have increased by 52 per cent over the past five years (an average growth of 8.8 per cent per year), from 41,361 tonnes in 2010 to 63,042 tonnes in 2015. “Total imports, on the other hand, have declined by 34 per cent (an average decrease of 8.1 per cent per year) from 37,289 tonnes in 2010 to 24,474 tonnes in 2015.” PHL, which is the 10th largest hub in the US in cargo volumes, saw freight and mail volumes increase by five per cent to 213,229 tonnes in the first six months of 2016. It says domestic airfreight grew by 8.6 per cent while international was up 0.7 per cent. Volumes are expected to grow by five per cent for the year to 450,220 tonnes with airfreight growth to make up for airmail declining.
Delta to improve service
Delta Cargo is rebuilding the company to make sure it provides best-in-class customer service, president Gareth Joyce tells Air Cargo Week (ACW). He says the industry’s overcapacity has been challenging, and something that will not go away, especially on international routes, but this gives Delta the opportunity to improve customer service. Joyce comments: “When our customers have so many choices in the air freight industry, we want to build a company and unique product that gives them a clear choice for reliability and outstanding customer experience.” He says the US East coast offers a number of opportunities including the demand for commodities like perishables and technology, as well as automotive parts: “Automotive companies continue expanding into the South with needs to ship cars along with parts, and our strong partnerships with freight forwarders on the East coast create mutual benefit for Delta Cargo.” Location is important: “The close proximity of the US East coast to Europe and Latin further strengthens this market.”
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FRANCE Marseille focuses on North Africa - Algeria and Tunisia
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he sun is certainly shining on cargo at Mediterranean located Marseille Provence Airport as it continues to expand. Now firmly established as a key link to North Africa from France and Europe, the gateway has set its sights on further growth in the years ahead. Marseille Provence cargo manager, Jean-Marc Boutigny says business has been good and up to the end at of August it handled 36,700 tonnes, a rise of nine per cent for the same period last year, which is above the target of seven per cent. Boutigny notes it has seen important growth in the express sector of (+10.2 per cent) especially thanks to DHL, which has grown 18.1 per cent and Chronopost, up 15 per cent and it is targeting express business in Southern France and the Western Mediterranean area. Volumes moved by the German integrator soared 57 per cent in August alone. DHL’s expansion has been a major factor in the growth and Marseille is benefitting from its decision to choose it as its hub to Tunisia and Algeria. But he says North Africa is the main focus: “Northern Africa is strategic partner for us. Marseille Harbour and all French part-
IATA condemns strikes
ners have very important links with Algeria and Tunisia that is why it is a key region for us.” Boutigny is very upbeat about the French air cargo market and feels it is in a good way at present: “I am optimistic because we have growing markets for express industry as French consumers are more and more using e-trade.” And he says the gateway will be investing to continue the expansion and next year it will build a brand new freighter stand able to welcome the Boeing 747-800 Freighter. Boutigny is hopeful of new routes being added over the next
FRENCH air traffic controllers went on strike again on Thursday, September 15 and the latest round was condemned by the International Air Transport Association (IATA). Across Europe this year, the association says the strikes have caused one million minutes of delay and it has called on governments to take steps to ensure service continuity in the face of industrial action. Controller strikes in France reportedly led to cancellations of at least 15 per cent of flights out of Paris Charles de Gaulle Airport. IATA’s European regional vice president, Rafael Schvartzman says: “The current frequency of disputes is totally unacceptable. European air travellers have suffered an incredible one million minutes of delay and over 3000 cancelled flights as a result of strikes this year. And today is yet another day of French strikes. “Every hour wasted impacts European productivity as businesses are disrupted. The time has come for European governments to work together to ensure the essential service of air traffic control is able to continue even during strikes.” IATA called on governments to ensure service continuity for air traffic management services, and Schvartzman adds: “The European economy needs reliable air connectivity. It cannot afford to have its airspace closed like this. “A starting point to keeping Europe’s skies open would be for each country to develop its own national airspace strategy, in consultation with airlines, which contains provisions for ensuring service continuity during periods of industrial action or equipment failure.” The association says alongside improving business continuity, the national airspace strategies should set out how individual European states will modernise and reform their air navigation systems in order to deliver improvements, which will benefit passengers and the European economy. IATA spoke of the Single European Sky (SES) project, which aims to improve safety and reduce costs, delays and emissions. It says due to a lack of political will at state level, the SES has languished without significant progress for years. A study undertaken by SEO Amsterdam economics published in February 2016 revealed the economic opportunities available to Europe if its air traffic management system were modernised and the SES goals realised by 2035. These benefits it claimed could include an extra one million jobs and 245 billion euros in additional GDP annually.
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few years and says it is always open to new opportunities, but North Africa will remain its main “niche market”. And he is ambitious and says in the future, Marseille Provence will play its role as the Western Mediterranean cargo hub: “We will be able to handle bellyhold business from Middle East or Far East. We will have a tailor-made service for integrators to and from Northern Africa. Our goals going forward are to handle most of the Southern French air cargo volume and develop our volume from and to Algeria and Tunisia.” The future is looking bright in Marseille.
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