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The weekly newspaper for air cargo professionals No. 1,055

28 October 2019

On the hard stuff with Colin

THE UK SME THAT CAN’T SAY NO

Safeguarding the meds

wissport International opened its Pharma Center at Brussels Airport on Wednesday 23 October, in a ceremony attended by industry and government representatives, and members of the press. The facility, which was a car park at the start of the year, offers 3,620 sq m of temperature controlled warehouse space. Once completed, the cargo complex will offer 25,000 sq m of warehouse space. Speaking at the opening ceremony, Swissport’s executive vice president Europe, Middle East and Africa, Luzius Wirth told the delegates: “It is right to say this is a great day for Swissport and Brussels Airport. We have no lesser ambition that to redefine the handling of pharmaceuticals. I have to thank Belgium’s deputy Prime Minister (who was in attendance) for creating an economic environment to invest in the marketplace. I also have to thank Brussels Airport Company with whom we have a long-standing, trusted and reliable relationship.” The pharma centre has two areas for handling pharmaceuticals, with 2,650 sq m for shipments requiring temperatures between 15-25C and another 1,000 sq m for 2-8C. There are eight dedicated truck docks, and other features include automated material handling systems, caster decks and forklifts and pallet movers. He adds: “This is the single largest investment globally and we strongly believe pharma will continue to grow. Brussels is a very important place for pharma handling which is why we have signed a 20-year lease with the

Swissport opens Brussels Pharma Center

Page 5

INSIDE TIACA AWARD FINALISTS

THE International Air Cargo Association (TIACA) has whittled down applications for its first Sustainability Award to three ... PAGE 2

75 YEARS YOUNG

AMERICAN Airlines celebrated the 75th anniversary of its first cargo flight on October 15, 1944 this month. For the next few months ... PAGE 4 ACL AIRSHOP IN ROCKET MODE

THE conference ended with a high energy presentation from Steve Townes of ACL Airshop, whose company has been moving... PAGE 7

airport.” The rest of the facility will be refurbished in stages until mid-2021, with a four-storey office building becoming operational at the end of next year. The Deputy Prime Minister of Belgium, Alexander De Croo was in attendance, and explained the importance of pharmaceuticals for the country. He says the best resource Belgians have are their brains. He says: “In an international environment we are very open and attract

the brightest minds in the world. We must keep this advantage as a small but open economy.” Belgium is the second largest producer of pharmaceuticals after Germany, worth €40 billion a year, representing 10% of total exports. Brussels’ cargo community is helping out, with De Croo commenting: “Brussels was the first CEIV airport and is in a very attractive position. The Ebola crisis a few years ago showed the role played to develop

and transport vaccines. It is no accident that Belgium is the biggest supplier of vaccines to the United Nations.” The deputy PM admitted that aviation is a controversial topic, saying: “The political environment has not always been easy for the airport. I know it is delicate but we need to find stability and highlight the economic benefits. There needs to be a balance though economic growth cannot be to the detriment of social well-being.”

LODIGE UNVEILS AGV FOR ULDS

LODIGE Industries global market leader in air cargo terminals unveiled its latest innovation for intelligent automated Unit Load ... PAGE 8

aircargoweek.com

TIACA names sustainability award finalists

he International Air Cargo Association (TIACA) has whittled down applications for its first annual Sustainability Award to three finalists. The awards, sponsored by CHAMP Cargosystems received applications from established corporations and start-ups to address CO2 emissions, waste reduction, humanitarian aid and other sectors. The three finalists are M&G Packaging with BioNatur Plastics, offering 100% landfill biodegradable plastic and stretch wrap to reduce single-use plastic; Nallian’s Open Ecosystem of Collaborative Applications offering an open data sharing platform to drive digital integration; and Wings for Aid Foundation with its self-landing cardboard delivery box for last-mile humanitarian aid. The projects were submitted to an independent jury of five judges who marked

the applications on criteria such as social, environmental and economic impacts, robustness and attractiveness. Steven Polmans (pictured), chairman of TIACA says: “Having the opportunity for the first time to organise this award is a big step in terms of who we, as TIACA, want to be and how we want to be seen by the industry. I am sure all entries will help us further shape our Sustainability program. Demonstrating the economic benefits of doing good for people, society and environment will inspire many of us.” Arnaud Lambert, CEO of CHAMP Cargosystems says: “I have clearly been

impressed by the quality and the variety of the applications. There was a good mix between projects from established companies and ‘start-ups’. The difficulty was to select the ones that will go on the podium.”

FedEx drone ambitions take Wing

A DRONE completed the first scheduled residential delivery on Friday 18 October, conducted by Alphabet Inc subsidiary Wing Aviation in collaboration with FedEx Express. The delivery to a home in Christiansburg, Virginia was part of the US Department of Transportation’s Unmanned

Aircraft Systems Integration Pilot Program, and marks the first scheduled e-commerce delivery using a drone in the USA. For the trial, Wing drones will transport select FedEx packages to qualifying homes in Christiansburg to demonstrate the benefits of drones for last-mile delivery service.

AIR France KLM Martinair Cargo has announced its winter schedule, with new routes and increased frequencies from Paris and Amsterdam. The full freighter network will also be upgraded, with a third weekly frequency to Santiago de Chile. Out of Paris, there will be more flights to Cancun, Rio de Janeiro, San Jose, Bangkok, Mauritius, St Maarten, Punta Cana, Santo Domingo, Cape Town, Delhi, Dubai and Abidjan.

Cargo capacity will also be offered on North Atlantic routes to and from Europe through the airline’s partnership with Delta Cargo.

AF/KLM upgrades winter freighters

AN Antonov AN-26 carrying six tonnes of cargo for the United Nations Mission in South Sudan overshot a runway in Yambio. The aircraft overshot the runway on 16 October and the mission’s official Twitter account says it got stuck in a bush. In addition to the cargo, the AN-26 was carrying 12 passengers and five crew members, none of whom were injured.

Quote of the week

“When the glass is half full I usually drink it” Steven Verhasselt, vice president commercial and strategy, Liege Airport Read part two of the Caspian Air Cargo Summit on pages 6-7

ACW 28 OCTOBER 2019

aircargoweek.com

AIA joins forces with Chapman Freeborn

Costing a packet – selling to the US

hapman Freeborn Airchartering has signed a strategic cooperation with Airbridge International Agencies (AIA) Cargo to strengthen services in Ireland. UK-headquartered Chapman Freeborn is now AIA’s exclusive partner for charters to and from the Republic of Ireland and Northern Ireland. Working with AIA’s Dublin-based team, the agreement gives local customers greater access to full charter, part charter and on board courier services. Pierre van der Stichele, group cargo operations director at Chapman Freeborn says: “We’re delighted to be working with AIA Cargo. The cargo industry in Ireland is a close-knit community, and AIA’s local expertise and relationships make this the perfect fit. Our two

companies have distinct areas of expertise but a shared focus on innovative cargo solutions and excellent customer service.” Mark Andrew, CEO of AIA Cargo says: “We see great potential working with Chapman Freeborn and are excited to be introducing their services to customers across Ireland. They have been at the forefront of the charter industry for over 45 years, and we look forward to seeing the relationship go from strength to strength.”

he UK’s supposed post-Brexit ‘white knight’, America, is actually imposing steep new taxes and price increases on goods and small parcels sent to the USA from overseas. The international delivery specialist ParcelHero says it will cost significantly more to mail to America and absorb the impact of new US duties next year. Britain may be looking to the US as its target market in a post-Brexit world, but the international delivery specialist ParcelHero says trading conditions are rapidly worsening for UK retailers selling to the US. David Jinks MILT, ParcelHero’s head of consumer research, says: “The USA is many British companies’ second largest market after the EU, and many more will be looking at increasing their US sales next year. But there are two significant new factors that will actually make UK sales to the US considerably less profitable in 2020.”

AIRFREIGHT volumes at Kuehne + Nagel fell as the whole market declined, but profits have remained stable. Between January and September, net turnover was down 2.6% to 3.5 billion Swiss francs (CHF), with earnings before interest and tax (EBIT) declining 3% to CHF 263 million due to challenging market conditions. Airfreight volumes fell 6.4% to 1.22 million tonnes but gross profits increased 11.4% to CHF 997 million due to growth in the pharma and healthcare, perishable and time-critical areas.

The integration of Quick International Courier, a provider of time-critical transport and logistic services for the pharma and aviation industries is going according to plan, and generating positive results. Dr Detlef Trefzger, CEO of Kuehne + Nagel International says: “In the more volatile airfreight business, earnings remained stable over the past quarters, with the acquisition of Quick having had a sustained positive impact. We are pleased to continue the momentum of the group this year.”

THIRD quarter profits at UPS were up 13.7% to $1.8 billion with the US domestic and international segments driving growth. Both the sectors recorded double digit increases in operating profits but the Supply Chain and Freight segment was down slightly due to trade uncertainty. Volumes on the US domestic segment were up 9%, with Next Day Air increasing 24%, Deferred Air by 17% and Ground volumes by almost 7%, with growth from B2C and B2B shippers in the

K+N sees airfreight decline to September

Explains Jinks: “UK online sellers to the US are already beginning to feel the bite of a raft of new taxes and price increases. Firstly, President Trump has just slapped $7.5bn of new tariffs on a long list of products entering the US in a titfor-tat for what he claims are illegal subsidies the EU makes to Airbus. “Britain’s exporters are subject to this tax while we remain in the EU, and Airbus has 25 sites in the UK, manufacturing components such as wings.”

commercial, retail, healthcare and high-tech sectors. Revenue grew almost 10% to $11.4 billion and adjusted operating profits by 26% to $1.2 billion. David Abney, chairman and CEO of UPS says: “The investments we are making in new facilities and automation in our network, coupled with solid execution of our strategies, are producing strong results, including strong, positive operating leverage.”

UPS Q3 double-digit profit growth

aircargoweek.com

ACW 28 OCTOBER 2019

ACWBITES DACHSER UK’s key investment in the northwest of England is fully operational. The newly built 5,175 sq m hub in Rochdale replaces their existing distribution facility. NIPPON Cargo Airlines is participating in Narita Airport Community’s programme for IATA CEIV Pharma certification. The community is organised by Narita International Airport Corporation to provide CEIV at Tokyo’s Narita airport. TURKMENISTAN Airlines has been reauthorised as a Third Country Operator by the European Aviation Safety Authority after an on-site audit in Ashgabat, Turkmenistan. The airline was able to resume European operations thanks to Lufthansa Consulting to assess quality, safety, flight operations and maintenance on both management systems and practical implementation. AIR Canada will not be flying Boeing 737 MAXs until at least 14 February 2020 based on “operational considerations”. The airline’s fleet of 24 737 MAXs were grounded on 13 March this year after Transport Canada closed Canadian airspace to the aircraft. Air Canada says the final decision to resume 737 MAX services will be based on safety assessments following the lifting of government safety notices and approval by international regulatory authorities. ASL Airlines Belgium has picked Jettainer to manage its ULD fleet, with the five-year contract starting with immediate effect. The Liege Airport-based cargo airline, which is part of ASL Aviation Holdings Group, specialises in the express market and offers scheduled, charter and ad-hoc flights using Boeing 737 and 747 freighters. ASL’s existing fleet of ULDs, consisting of about 1,500 units will be utilised on its European network and flights to the USA, China and the Middle East. FRENCH transport and logistics company Heppner has picked Sebastien Delmotte as overseas network director. In his role, Delmotte will be in charge of relations with all partners, optimising the network’s global coverage and identifying trade synergies for products and procurement. The overseas service covers air freight, sea freight and customs, based on a network of independent partners in their markets. Delmotte began his career in 1996, and joined Heppner in 2013. LATAM Cargo and Unilode Aviation Solutions will roll out digital tracking for the entire ULD fleet. Unilode has been managing LATAM’s ULD fleet since 2016 and digital tracking is another major milestone in the partnership. Other milestones include opening a bespoke ULD repair centre in Santiago de Chile. SAUDIA Cargo has been issued with European Union Good Distribution Practice certification for handling pharmaceuticals by SGS. The certificate recognises Saudia Cargo’s storage and transportation services for pharma and medical cargo, having fulfilled and met all international requirements.

ACW 28 OCTOBER 2019

Dynamic duo arrive at CharterSync

charter platform CharterSync has expanded its team with the appointment of Izzy Hamilton and Andrew Burvill. The London-based company says they “come with a wealth of experience and knowledge in their respected fields, with a shared passion to drive CharterSync forward.” Hamilton joins to head up the finance function within CharterSync. She comes with 10 years’ experience within the finance industry for companies such as NBC Universal and Sony, as well as a great deal of knowledge on client profitability analysis and devising the correct structures to ensure a smooth financial process.

Commenting on her new appointment, Hamilton said: “I have a wealth of experience to ensure complete transparency whilst also eliminating any gaps within company processes. “I can’t wait to contribute to delivering impeccable service and driving advanced time-sensitive charter solutions.” Burvill is from Perth, Austra-

lia joins the operations team and brings with him six years’ experience along with a degree in Aviation. His previous roles range from load control at Perth Airport to operations controller at Virgin Australia. During his career to date he has built up “exceptional knowledge within aviation, specifically understanding the processes involved

in proactively managing flights within an operational environment,”said the company. “I decided to relocate to London at the start of 2019 in search of a fresh opportunity within aviation. CharterSync’s innovative technology and company values instantly stood out.” CharterSync co-founder Ed Gillett said: “In order to continue driving CharterSync as a time-efficient and innovative solution, we are delighted to welcome Izzy and Andrew to the team.” Co-founder Simon Watson added: “Their experience and knowledge makes them a great fit. They will play a vital role in CharterSync’s development within the market.”

Double delight from “Big Twin” for GECAS and IAI

GECAS and Israel Aerospace Industries (IAI) have launched the Boeing 777-300ERSF passenger to freighter conversion programme. Agreements for “The Big Twin” were signed in July 2019 and a prototype aircraft was provided by GECAS, with the 777-300ERSF Supplemental Type Certificate Development Program being launched. As launch customer and co-founder, GECAS will commit 15 firm orders and 15 additional options for the 777-300ERSF from its owned portfolio to the programme. The initial conversion is expected to take place in Tel Aviv with further conversion lines

outside of Israel from 2023. The programme will also see IAI enter into conversion agreements for the 777-300ERSF directly with airlines and lessors around the world. The 777-300ERSF STC development and prototype conversion is estimated to take over three years from the start of the programme to achieving CAAI/FAA STC approval, with subsequent conversion taking four to five months. Richard Greener, senior vice president and manager of GECAS Cargo says they are excited to join IAI on the programme, saying: “Their proven experience, knowledge, and unique

engineering skill and resources in passenger to freighter conversions — combined with our working relationship with IAI stretching back into the 1990’s —gives us the confidence to co-fund the STC Development and commit to the programme as the launch customer of the B777-300ERSF.” Yosef Melamed, executive vice president of IAI says: “IAI commends GECAS’ ability to see around corners and work with the IAI Group to build a great aircraft that the market requires. We are delighted GECAS has put such trust in IAI’s abilities and are proud to continue our long-term relationship.”

Qamar new PIFFA chair Interworld Freight in Dominican KARACHI-based International Cargo Management (ICM) managing director, Izhar-Ul-Haq Qamar, has been elected as the unopposed chairman for PIFFA (Pakistan International Freight Forwarder Association) for 2019-20. Qamar said: “I take this opportunity to extend my thanks to you all for electing me unopposed for the important post of chairman and entrusting me to lead the affairs of the Association with the collective wisdom and guidance of the executive committee and members.” He added that to achieve its goals and recognition, members need to demonstrate discipline and professionalism by adopting “the best business practices.”

Republic now AEO-certified INTERWORLD Freight in the Dominican Republic has been certified as a Authorised Economic Operator (AEO) by OEA (Operador Economico Autorizado). Country Manager Leonardo Ocampo says: “Interworld Freight is committed and always looking to provide the highest safety standards worldwide.” He continued: “For this reason, our Dominican Republic office has worked extremely hard to fulfil all the requirements established by the Customs authorities of the country and as a result we are proud to announce that we have

been certified as an Authorised Economic Operator (AEO).” An Authorised Economic Operator is defined by the WCO (World Customs Organization) as a party involved in the international movement of goods that has been approved by a national Customs administration as being compliantwith WCO or equivalent supply chain security standards. An AEO status effectively demonstrates a company’s role within the international supply chain is secure and that its Customs controls and procedures are efficient and compliant.

FLYING BACK TO THE PAST AMERICAN Airlines celebrated the 75th anniversary of its first cargo flight on October 15, 1944 this month. For the next few weeks, Air Cargo Week has been given exclusive access to a large library of historic photos that record the 75 years of AA cargo operation. The technology for loading and catering for the DC4 may be antique but the purpose remains the same: get the freighter filled and off the ground. Seventy-five years, the message hasn’t changed.

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ACWWEEK IN NUMBERS

ACW SME interview

On the hard stuff

A UK SME that cannot say no to a hard forwarding job

from every shipment donated by Turkish freight forwarder Solibra Lojistik Hizmetleri to feed and cover medical expenses of stray animals in Istanbul.

here are few freight forwarders whose business model can be summed up by a quote from St Francis of Assisi. The Italian saint may have lived five centuries before managing director Colin Redman set up PSP Worldwide Logistics London but the sainted one must have had PSP in mind: “Start by doing what’s necessary; then do what’s possible; and suddenly you are doing the impossible. Redman and his team of four deliberately set out to take on those jobs that other forwarders might turn down for being too difficult or almost impossible. He says: “We do stuff that is not easy to do.” As a SME forwarder that is almost boutique in its approach, PSP London is not about chasing a business fortune by becoming kilo millionaires or pricing jobs to be loss leaders, Redman says.

new members of staff taken on by London-based Go-Now air cargo charter startup CharterSync.

June in March

Instead, he seeks out those jobs that other forwarders shy away from, says Redman. One such recent job was for an “exciting young brand and fantastic client,” June in March. Described as the B2B “florist of choice specialising in large architectural installations for bespoke weddings and corporate events to a Who’s Who of global brands including Jack Wills, Tatler, Veuve Clicquot and the Asia Society,” owner Emily Baylis turned to the Staines-based forwarder to arrange transport for an installation in Venice. Though floral decorations may not present weight or cubic problems, they are exactly the “troublesome traffic” that PSP London relishes.

Four decades

Redman, who admits to being north of 50 in age, started PSP London in 2003 with his wife Michelle, who remains as operations director, with a lifetime career in freight. “I started as a young man at TNT Skypak where we were getting £30 a letter and sending hundreds with on board couriers a day. I moved to Mercury International where I worked in dangerous goods shipments.” One of the lasting legacies of his time with Mercury was a manager who encouraged the keen younger Redman to go on every training course possible. This means that he is very keen for his current PSP London staff to take as many training courses as possible. In the 16 years that PSP London has operated, the only change in staff has been growth in numbers. He is proud no-one has left his employment in the years since the launch. In fact, the youngest member of staff, Jordan Wyeth as export supervisor, started as an freight apprentice. “I encourage staff to take every course they can,” he says, mentioning IATA and FIATA courses.

40ft “plug and play” mobile container laboratories built in the Rhone-Alpes region of France belonging to the Merieux Foundation as well as a mobile laboratory truck belonging to the Praesens Foundation of Belgium moved by Volga-Dnepr Group.

Wayfarer House are gone,” he says.

Brexit impact

While the great and the good in the wider world and the freight industry concern themselves with the minutiae of Brexit developments, Redman surprisingly acknowledges the preparedness of HMRC in Brexit matters. He says: “There has not been enough said about how HMRC is prepared for Brexit. We talk regularly with them. They have done lots of preparation.” One thing he pushes his clients towards is gaining AEO status as an exporter to avoid many possible headaches post-Brexit.

Section 5

Where once airfreight forwarders had to physically crowd around the Horseshoe at LHR to delivery paperwork to the respective aviation and Customs authorities, PSP has taken advantage of digital technology to move out of the congested real estate and move 10 km to Staines. A canny purchase of a dilapidated pub has secured the company’s future trading base. “In Surrey there are not a lot of freight forwarders. No-one needs to be at Heathrow anymore. The days when you had to be just miles from

While even much of what PSP London handles borders on the ordinary, that cannot be the name given to the moments that Redman uses his Section 5 licence from the UK’s Home Office to handle firearms and ammunition. Where such material is related to military activity by friendly governments and air forces abroad, Redman calls on maindeck capacity from the Royal Air Force. “We sometimes use RAF Brize Norton for shipments,” he says. “These are consignments to other air forces or police authorities.” While most such shipments are, by their nature, cloak and dagger, one such shipment he can talk about has been to the FBI in the United States. One headache for those shipping arms is that they have to seek specific permission from each country the cargo flies over to allow the journey. As the company nears hits 20th anniversary, Redman shows no sign of slowing. “I’m still having fun,” he says. “No two days are the same.”

A Douglas DC-3 operated by Atlantic Air Cargo ditched in the sea on the approach to Nassau airport in the Bahamas. The aircraft, registration N437GB was flying between Miami-Opa Locka Executive Airport and Nassau Lynden Pindling International Airport when it ditched about 2.5 miles short of the runway at 16.45 on Friday 18 October. In a statement on Facebook, The Bahamas Air Accident Investigation Department says an emergency was declared at 16.30 due to the left engine failing. The two pilots were rescued by the Royal Bahamas Defence Force. The aircraft sunk and efforts are underway to recover it. The DC-3 was delivered new to the USAAF in 1944 and has been operated by Atlantic Air Cargo since March 2006.

BCUBE Air Cargo has signed an agreement to adopt the IATA Dangerous Goods AutoCheck solution. Mauro Grisafi, CEO of BCube Air Cargo says: “We believe this solution is essential to promote safety in operations related to the handling of dangerous goods. We are also firmly convinced that, by adopting the DG AutoCheck solution, we can offer our customers more efficient and competitive services and have a positive impact on the entire airline cargo chain.” Nick Careen, senior vice president of airport, passenger, cargo and security at IATA says: “By implementing the DG AutoCheck in the DGD process, BCUBE has shown its contribution to the enhancement of concepts such as efficiency, compliance and safety. We encourage air cargo operators to follow their example.”

Keeping it local

DC-3 ditched in the Bahamas

BCube uses DG AutoCheck

aircargoweek.com

hackers (industry professionals, data analysts, engineers, startups) will work for 24 hours on November 13/14 on challenges proposed by the industry (Nallian, Liege Airport etc.). The objective is to produce initial solutions that hopefully will become start-ups in the future.

1,588

kg load carried by 5ft Lodige Industries ULD AGV (Unit Load Device Automated Guided Vehicle).

3,620

sq ms of the brand new “Swissport Pharma Center” at Brussels Airport, to be officially opened in the presence of Deputy Prime Minister and Minister of Finance Alexander De Croo.

50,000

warehouses, including those in the global supply and airfreight chain, across the globe expected to be fully automated using some four million robots by 2025.

650,000

tonnes of cargo handled at Liege Airport by October 2019.

ACW 28 OCTOBER 2019

CASPIAN AIR CARGO SUMMIT

The Caspian Air Cargo Summit was a busy two days of discussion and network in Baku, Azerbaijan. About 275 participants attended the conference at the Fairmont Flame Hotel on 8-9 October. Having published part one of the review in our 21 October issue, here is part two.

Son iki il bir partlayış oldu

(The last two years have been a blast)

espite cargo volumes suffering, the last two years have been a blast and are worth celebrating, says Steven Verhasselt. The vice president commercial and strategy of Liege Airport was the first speaker on Wednesday 9th October for the session “E-Commerce - What’s Next?”. Liege is the largest cargo airport in Belgium and though it has been suffering in the downturn like everyone else, Verhasselt is not concerned. He says: “I tell the board that imagine in October 2017 that by October 2019 we were handling 650,000 tonnes they would hold a party. The last two years have been a blast and though things have gone down a little, I see the glass as half full, and when it is half full I usually drink it.” Liege has a unique model with a large integrator market at night and general cargo operating during the day. Verhasselt comments: “Like the Infinity nightclub it is quiet around 10 but busy beyond midnight.” The network is very wide, with Verhasselt adding: “We are well balanced geographically, this is an advan-

ACW 28 OCTOBER 2019

tage when some business is down. The transatlantic is not rocking thanks to the rock star in the White House.”

aircargoweek.com

In Liege, customers are also offered multimodal services through rail links. Not a train man himself, Verhasselt says it is important to give the customer choice. Cross border e-commerce is a major business, and Cainiao Smart Logistics Network, part of Alibaba Group has pledged to serve China within 24 hours. In Liege, it is leasing 220,000 sq m facilities to be ready in 2021 and in time for 11 November, Single’s Day. All these e-commerce shipments present a problem, lots and lots of airway bills. Verhasselt told the audience: “The system has changed when a 747 had on average 20-100 AWBs for the ground handler to sort out before leaving on a pallet of consolidated cargo. That’s changed, now you have on board 15,000 AWBs. When a train arrives it has a lot, the number of customs packages was 12 million in September 2019. In order to manage you have to be innovative.” Liege Airport was a number of companies signing up to BE-GATE with Belgian customs. Verhasselt says: “E-commerce shipments are checked while on the flight, it is not anything goes. We focus on the shipment, the digital infrastructure is as important as physical infrastructure.”

XƏZƏR HAVA YÜKLƏRI GÖRÜŞ

Kim sağ qalacaq DT yox olma hadisəsi? Who will survive the DT extinction event? e are living during the digital transformation or

DT event, and this is causing a major extinction of big players, says Sunil Malhotra, managing partner of Bchain Consultants. He compared the digital transformation to the Cretaceous-Tertiary (K-T) extinction around 66 million years ago when an asteroid over 10 kilometres wide crashed into the Gulf of Mexico, wiping out many groups of animals including most famously, the non-avian dinosaurs. While no tetrapod weighing over 25 kilos, with a few exceptions including crocodiles survived the K-T, it marked a new era when new forces took over the world, in that case, the mammals. Today, as one group of mammals, the primates dominate the world and engages in activities including hosting air cargo conferences, Malhotra says we are going through an extinction event. He says: “Instead of K-T we have DT. I must express sadness at the death of Thomas Cook but say that the crocodiles lived.” After bringing up some more examples of large companies who have not survived including Blockbusters and Fuji Film, Malhotra pointed out how a number of firms do not have any assets. He used examples such as Uber, the world’s largest taxi company but owns no vehicles, and Airbnb, which is worth more than Marriott hotels despite not owning any property. These companies are Malhotra’s crocodiles.

He says: “What we see here is a game-changer for digital transformation. Integrated digital technology changes how we operate, 20 years ago people didn’t have emails or mobile phones. Imagine living without emails or mobile phones.” With change, it is often not the technology but the people who are the barrier. Malhotra says: “Cultural transformation leads to change, people are resistant to change. Technology is one aspect but mindsets need to change. Digital transformation using technology helps solve problems and people respond better. We are also moving from old hardware to a subscription model on the cloud.”

Moskva üçün böyük planlar (Big plans for Moscow)

s Russia and the CIS’s largest airport, Moscow Sheremetyevo International Airport is further expanding infrastructure for future growth. Elena Konkina, deputy general director - commercial director of Sheremetyevo Moscow Cargo explained that the airport counted for half of Moscow’s air cargo, including a 42,300 sq m cargo terminal. She told the delegates: “With growing air cargo volumes there are new requirements for the market. To attract airfreight you need new infrastructure.” The market for perishables and pharmaceuticals are expected to grow 60%, and Moscow Cargo is able to provide temperature control for bigger shipments. E-commerce is growing 20% per annum and more than 85% is cross-border B2C shipments.

Konkina says: “By 2021 we will enhance transfer cargo, express shipments, the cool area and transit mail handling. With IT development, all the data will be shared with main customers. E-AWB and e-freight will come when the government allows it.”

What is important is the change in living capability, with things like banking, procurement and online shopping being done on handheld devices. Malhotra says he does not have crystal ball but predicts a tsunami is waiting as we move towards mobile social platforms with cloud services, wearable technology and other innovations such as Internet of Things. Malhotra comments: “The last 20 decades have been phenomenal for homo sapiens. The next two decades will be phenomenal for cyber systems.” Blockchain is one of the new technologies, with Malhotra predicting decentralised cryptocurrencies will be the future of financial assets. He says: “The IMF governor has said it is not a matter of if they happen but when. The move to digital currencies will enable secure transactions to happen in web 3.0.” While boards of companies talk about innovation and the need to be innovative, it usually falls to outsiders to make changes. Malhorta says: “Barriers are created by people because they don’t want people to change. Air cargo has been slow to adapt to the future. Our industry faces huge challenges with soft prices, stagnant growth, unattractive finances, trade wars and other issues.” Companies are slowly adapting, with Amazon Alexa for shipment tracking, apps, and start-ups using cargo handling with Internet of Things. The key benefits include reducing fraud and cutting costs. Malhorta ended his presentation saying: “When the wind of change blows, some people build walls whilst the others build windmills.”

Avtomobil sənayesi yavaşlayır

(Automotive industry is slowing down) om Crabtree of Boeing Commercial Airplanes has been looking into the numbers and has concluded that we’re all wrong to blame the trade wars for the downturn. The regional director - airline market analyst says it is really the automotive industry that is driving volumes into the ground. He says that after several bad months, September is not looking like an improvement, and the CIS region is falling at double the global average rate. He told the audience: “We’ve done our homework and the problem is automotive production in Europe and China. We did a study a long time ago and found 10-15% of cargo is automotive products. The German automotive association index is down 15% and this is the driving force of the weakness. This is not a trade war but the downturn is automotive.” The CIS will still need more aircraft in the

future. Military aircraft in commercial service peaked in 1995 but few remain today. Boeing predicts the CIS will need 1,280 new aircraft by 2038 with single aisle passenger units the most common, while freighters will largely be conversions. He comments: “Recovery is expected around 2020 or 2021 and the CIS has been hit twice as hard but freighters remain the backbone of the region.”

ACL Airshop tam raket rejimində vurur

(ACL Airshop shoots off in full rocket mode)

he conference ended with a high energy presentation from Steve Townes of ACL Airshop, whose company has been moving at high speed. Townes, who believes CEO should stand for chief encouragement officer and the boss should be the company’s biggest cheerleader, says that after three years of trial and error, the team have achieved big things. Admitting that not everything went perfectly, Townes says business has doubled in just 48 months. He says: “We are in full rocket mode, we may not be the largest in the sector but when the likes of Jettainer and Unilode need us in a pinch, we’re there.” ACL Airshop has transformed from a ULD company after the board told Townes that to be a market leader, the focus had to be on technology. It teamed up with a company from New Zealand who were experimenting with Air New Zealand and the post office but needed a big brother. The little company was playing with Bluetooth technology, and the theory was wonderful. Townes says: “I had to go to the board with a very brash decision to take risks and spend lots of money. They asked how would

we mitigate risks, we did this as best we could. We teamed up with the small company and the catalyst is they were bought by a leader in global networks, Descartes.” Being an early adopter is always risky. Townes comments: “As a first adopter we goofed so many times, we stumbled, but then we redirected the stubbed toe. We are moving smoothly or smoother.” The teams work has been appreciated by customers, with the

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chairman of a major airline saying ACL Airshop has helped save a lot of money through mostly trial and error. Good quality data is essential, with Delta Cargo implementing data tags at over half of major customer drops at larger airports. Townes says: “With the same reader and tags, there is a bigger network and everybody benefits. Now we can say jump in, we view the vision of the future as all benefiting from getting bigger and bigger.” Townes predicts that the next big thing is to tie Bluetooth tracking and other technologies to airway bills. He says: “This is going to take time, it has taken three years to get this far. The next big leap is how this will get done. With the airway bill, technology customers can look like Amazon with every pallet tagging device saying what is in it and the stats. This will be a unicorn leap for the industry and I predict we will be the first to market it.” ACL Airshop has been moving quickly, with Townes saying: “There is a difference between speed and haste. We are making mistakes and tweaking, working in concert with our customers. Customer relations and performance has been enhanced. I know we are moving a bit fast but we are going to get there. We have ambitious goals and we want to be first.”

ACW 28 OCTOBER 2019

NEW TECHNOLOGY

Labour makes up the bulk of all warehouse operating costs which is exa

Lödige Industries unveils automated guided vehicle for airfreight ULDs

ödige Industries, global market leader in air cargo terminals unveiled its latest innovation for intelligent automated Unit Load Device (ULD) transportation at the inter airport Europe 2019 trade show in Munich. The computer-controlled wheel-based carrier features a 5-foot and 10-foot model for different sizes of ULDs, with the larger variant capable of lifting and transferring palletised loadings. Taking advantage of data-based functions to assign routing precisely via warehouse management systems, the faster and highly reliable AGV will boost operational efficiencies in cargo transport. The battery-powered load carrier allows operators to connect the various terminal areas in a flexible and scalable way, establishing for example an effective link between landside-based truck docks and airside-based ULD storage or other repetitive intra-terminal transfers.

Driverless

The driverless AGV will enable operators to free up staff for higher value assignments. Furthermore, it is an effective tool for use when space is scarce and flexibility is critical. The AGV has the potential to lower fixed costs by making floor-mounted roller conveyors redundant which have traditionally been seen as the most economical way of conveying airfreight. “We are pleased that we can offer our customers a product that will foster sustainable operations and significantly improve terminal efficiency,“ Björn Ussat, director airport logistics solutions at Lödige, says of the AGV, which was being shown at the inter airport in Munich. “The ULD AGV is the natural extension of our product range, as we can offer even more flexible terminal configurations to our customers.”

ACW 28 OCTOBER 2019

Lödige’s conveying technology has been installed at more than 40 cargo terminals around the world and manages just over a quarter of the 56-million-tonne global airfreight volume. Besides yielding benefits on costs and flexibility, the AGV also helps improve safety as it is

equipped with laser scanners and other sensors that detect obstacles preventing impact. At a speed of three metres per second, the 10ft model can handle various ULD contours and runs one shift on a single battery charge. Its maximum load capacity of 6,800 kgs covers all possible 10ft-ULDs. The 5ft model carries

5G is foundation

ccording to Ericsson, digital transformation is coming to a warehouse near you. There were 4,000 robotic warehouses in operation worldwide last year. By 2025, four million commercial robots will be at work in 50,000 warehouses across the globe, forecasts say, a 12-fold increase in the span of just six years. It is connectivity that is making the industrial internet of things (IIoT) a reality on a massive scale. 4G LTE and 5G networks are up to the task. “You only need to look to global logistics company DHL to understand that investing in warehouse automation and digitalisation enhances the customer experience, boosts efficiency and lifts profit,” says the company “When you consider that labour is the single largest cost of total warehouse operating costs, it makes sense to automate and digitise operations. The competition for the limited pool of warehouse workers is fierce. Recruitment and retention are huge issues for warehouse managers. Wages have gone up while productivity has gone down.”

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loads up to 1,588 kg for 12 hours straight. Customers are able to order the 5ft model immediately, the 10ft device will be available from the summer of 2020. “This innovation (AGV) fits well with our company history” says Philippe De Backer, Lödige Industries. CEO.

Combatting pallet weakness

K product handling expert Exporta, which provides plastic packaging solutions and transportable pallets for some of the world’s largest blue-chip companies, including DHL, introduced an assets tracking system for one of its clients. A third-party contract print provider in the UK had a costly problem: they were losing pallets. To help eliminate this asset loss Exporta solved this issue by using barcoding labels with integrated RFID, so each pallet can now be tracked and traced at any point in the network. Exporta was first contacted in August 2018 with a requirement to fix a couple of specific problems they were having with their pallets. The first problem was that the pallets were breaking and not giving the right

return on investment. The second issue was that they were also losing pallets from their network. No matter how they tried to keep track of the pallets, they were reducing in number over time. The 01-LPN1210G5 Heavy Duty Monobloc Industrial Pallet with an open deck and a five-runner configuration was selected.

WAREHOUSE & TERMINAL STORAGE

is exactly why automation is what all warehouses strive to achieve

DB Schenker Americas collaborates with IAM

y blending robotics, automation, and artificial intelligence into the warehousing environment, DB Schenker is finding new ways to offset long-standing challenges such as the shrinking labour market and the demands of high-velocity e-commerce business models. With the goal of developing an increasingly productive, efficient, and fully flexible automated warehousing environment, global logistics provider DB Schenker in the US is collaborating with IAM Robotics to blend innovative, leading-edge logistics technology into its operations. As automation and robotics continue to pave new inroads in the logistics environment, this new collaboration will serve as a foundational platform for the use of these advanced technologies to help shippers work smarter, better, and faster. A maker of mobile piece-picking robots that are taking warehouse automation to the next level, IAM Robotics has been recognised by many organisations for excellence in technology innovation. “This is an exciting time for the logistics industry, where a lot of great technologies and solutions are emerging,” said Joel Reed, CEO at IAM Robotics. “This alliance blends perfectly with DB Schenker’s own initiatives and commitment to innovation and new technology in e-commerce.” By infusing flexible robotics and automation into the warehousing environment, logistics providers like DB Schenker are finding new ways to offset long-standing challenges such as the shrinking labour market and the demands of high-velocity e-commerce business models. Working together, DB Schenker and IAM Robotics are looking not only at how to improve today’s warehousing operations and improve their flexibility, but also at what those warehouses will look like 5-10 years from now—and what future technologies can be deployed to make those visions a reality. “This is a true collaboration in the sense that DB Schenker knows the logistics industry inside

working toward, fully flexible distribution solutions and models – the kind of capability that allows organisations to be responsive to the accelerated pace of change.” said Reed,. “To achieve this vision, we’re having open dialogues about customers’ needs, a road-map for the future, and where those two intersect.” As automation and robotics continue to drive unprecedented levels of change in the warehousing and distribution environment, IAM Robotics is helping providers like DB Schenker overcome key challenges while also helping them ensure future longevity and profitability. “In the warehouse, fully-automated applications will be the key to sustainability and competitiveness in the new marketplace,” Stikes said. “Through automation, companies

and out, and IAM Robotics has an incredible depth of technological knowledge and innovation,” said John Stikes, DB Schenker America’s director of innovation and e-Commerce. “By bringing these two powerful forces together, we can challenge one another and come up with solutions that literally take warehousing to the next level.” For example, the two organisations are collaborating on the deployment of mobile manipulation solutions, or the type of robots that can both pick up and transport goods. “This is the goal that the entire logistics industry is

can achieve compelling economic advantages while alleviating their labour issues, and then redeploy that labour to more thought-involved processes and gain enhanced flexibility in their operations.”

Warehouse racking market worth $10.5 bn by 2025

knesses and losses

second issue ng pallets from w they tried to ey were reduc-

y Duty Monoopen deck and was selected.

The second issue was solved with two specific developments for the pallet. First, Exporta made the pallets out of virgin material in yellow and added branding in blue. This made the pallets distinct in colour while complimenting the brand identity, making them useful for marketing purposes. Exporta then applied the barcode

labels. Don Marshall, head of e-Commerce and fulfilment at Exporta, says: “In this process, we added value to the customer by not only supplying a suitable pallet but through working closely with them to create a unique solution for them: fully trackable and traceable.”

T IO-Link Master with OPC UA interface PLANTS, products, and systems are becoming increasingly networked. This has resulted in a major effort to set machine-to-machine (M2M) communication standards, says German manufacturer Pepperl + Fuchs. “In recent years, one such standard has already established itself on the market: OPC UA. This cross-vendor, open architecture is designed for information exchange in industrial communication. In addition to M2M communication, the

technology supports data and information exchange between machines and higher-level systems in Industry 4.0 environments. Pepperl+Fuchs presents the world’s first IO-Link master with an OPC UA interface that combines the architecture’s benefits in one device.” For the first time, Pepperl+Fuchs has incorporated OPC UA into IO-Link masters and is now introducing the ICE 2 (EtherNet/IP) and ICE3 (PROFINET) master series in addition to the ICE1 masters that are used for PLC-based systems and time-critical applications.

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he global warehouse racking market size is expected to reach $10.5 billion by 2025, ascending at a CAGR of 3.6% over the forecast period, according to a new report by Grand View Research, Inc. Optimised utilisation of warehouse space and structural storage of objects in racking systems is expected to propel their demand. High load-bearing capacity and rigidity of rack structures are expected to be the key factors propelling their demand in heavy duty applications. These systems are commercially available in various structures, patterns, and designs, thus are gaining high consumer traction. Racking offers easy handling of materials and optimised way of product selection, thus are popular in large-scale storage facilities. Forklifts and conveyer mechanisms are used in racks to provide access to every object stored in racking structure.

ACW 28 OCTOBER 2019

BELGIUM

Coastair is in the right place

ocated in the south of Belgium, Liege Airport is one of the few airports not posting grim results at the moment, making it an ideal location for Coastair. Managing director Ronny Samaey tells Air Cargo Week that business is performing well, with two new routes and the opening of Skyhouse, Coastair’s second line warehouse in Liege. He is confident about the rest of the year on Lagos, Jinan and New York John F. Kennedy routes and 2020 will see more African destinations. The location puts Coastair in a strong position, with Samaey saying: “We could not have been positioned better! A full cargo airport connecting North-South-East-West … with our Skyhouse in the middle.” Liege Airport is one of the few airports in Europe not to be posting negative monthly figures at the moment, and Coastair is doing its best to make sure it’s all positive.

Samaey says: “Coastair has had Imperial Cargo with direct flights to Lagos for the past 11 years. This year we added two new routings (TNA/JFK) and we opened a second line warehouse.” Coastair is not standing still and is determined to continue growing. Samaey says: “Starting 2021 we want to be recognised as a firm partner for airlines and cargo agents who trust their cargo will be handled well through Skyhouse. Optimisation of the client’s load, building better pallets using manpower who care, who understand how the business works and to be proud of what they have built.” A company can have the best infrastructure, but it needs to be staffed by the right people. Samaey says the knowledge of cargo is good in Belgium and the staff are willing to go the extra mile. He comments: “Good staff comes with a price … but then again you get experienced and loyal staff … Yes, it is great to be in Liege.”

Envirotainer RAP comes to Liege

ENVIROTAINER has extended its network for e-technology containers by opening its 34th RAP e2 station in Liege, Belgium. The RAP e2 containers have shipped over 150,000 pallets of pharmaceuticals to date with no product losses. Niklas Lönnkvist, head of sales EMEA for Envirotainer says Europe is the largest pharmaceutical region in the world, with exports

ACW 28 OCTOBER 2019

exceeding €100 billion in 2017. He says: “The strongest reason for upgrading our Liege (LGG) station to also handle our RAP e2, even though we already have 15 RAP e2 stations in Europe, is purely based on customer needs. We wanted to create a significantly better customer experience for our pharmaceutical customers by reducing the need for trucking units between stations.”

K+N expands Geel pharma hub KUEHNE + NAGEL has added capacity at its pharma hub in Geel, Belgium, offering multi-modal temperature-controlled forwarding and warehousing services. The Geel hub, which is close to both Brussels and Liege airports and has fast connections to the other 15 European KN PharmaChain locations, is fully GxP compliant and certified. The facility covers 22,000 sq m with another 10,000 sq m available for expansion, and has two cold chambers to handle varying temperature requirements. Tobias Jerschkle, managing director of Kuehne + Nagel BeLux says: “The enlarged pharma hub in Geel is an inherent part of our

strategy to offer integrated logistics solutions to our customers, at the very centre of one of Europe’s strongest pharma clusters. Leveraging our distribution network, we make sure that hospitals, pharmacies, doctors and patients are supplied in full and on time.” Kuehne + Nagel is also investing in a 15,000 sq m airside pharma facility at Brussels Airport, due to be opened in the second half of 2020.

NAM adds flights to Johannesburg NETWORK Airline Management has opened two flights a week between Liege, Belgium and Johannesburg, South Africa. The Boeing 747F services operate on days 4 and 7 with the first flight taking to the sky on 29 September. The route opens up road feeder services from South Africa’s main city to onward destinations including Gaborone, Harare, Lusaka, Walvis Bay,

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Windhoek and other locations. Neil Ledingham, customer service manager at the London Gatwick Airport headquarters says: “We are delighted to be announcing this new scheduled service into Johannesburg and offering even more regular destinations for our customers. This new routing could potentially see more than 200 tonnes of cargo transported every week!”

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