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The weekly newspaper for air cargo professionals No. 1,029
29 April 2019
Who will be in the driving seat in the future?
Cargolux profits as market stalls
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argolux Airlines International has managed to increase posttax profits for the second year running despite a backdrop of global softening in market
demand. Net profit after tax reached $211.2 million in 2018, up from $122.3 million in 2017 despite demand falling in the second half of 2018, a shorter peak period compared to 2017, trade war uncertainty, geopolitical unrest and Brexit. Increased demand came with positive yields. Block hours rose 3% to 138,179 and FTK totalled 8,409 million and available tonne kilometres grew to 12,375 million, resulting in load factors of 67.9%. Richard Forson, president and CEO of
Cargolux says: “Cargolux achieved exceptional financial results in 2018 despite slower economic growth in the second half of the year. Strong focus on the management of our capacity and yields, increased demand for specialised shipments, a record year for our charter division and the diversification into offering ACMI solutions all contributed to the performance achieved. Our employees demonstrated once again that hard work, dedication, and expertise are at the heart of our company’s success and sustainability.” In 2018, Cargolux went on a journey of transformation with IT systems being overhauled to streamline processes, synergise teams internally and enhance customer experience.
AFKLMP and WebCargo team up to offer dynamic prices AIR France KLM Martinair Cargo (AFKLMP) has teamed up with WebCargo to offer live rates, assess capacity and secure cargo bookings on specific flights to forwarders.
Last month, a pilot between Panalpina, WebCargo and AFKLMP ushered in a new era of digital sales, and now WebCargo’s other customers can benefit from improved visibility, instant booking and increased data exchange accuracy. Real-time eBookings will be launched in a number of countries and gradually expanded. In order to improve customer experience, AFKLMP has prioritised technology initiatives like APIs, and will also launch dynamic air cargo pricing. The airline says this will provide advanced revenue management capabilities while offering forwarders and shippers access to the most competitive rates. Marcel de Nooijer (pictured right with Zvi Schreiber, CEO of Freightos Group), executive vice
president of Air France KLM Cargo and managing director of Martinair Holland says: “Our latest partnership with WebCargo by Freightos provides our customers and partners a convenient and fast digital interface to our products and services, and it stipulates time and again that our strategy ‘be there, where the customer is’, is the right one.” Manel Galindo, CEO of WebCargo adds: “Air France-KLM is one of the world’s largest airline groups, which has developed unparalleled digital capabilities stemming from a commitment to offering best-in- class customer service. As a recent benchmarking study we conducted confirms, Air France-KLM Cargo is one of the cargo industry’s leaders bringing freight online. We’re proud to play a role in their success.”
Pages 8-9
INSIDE JET AIRWAYS SUSPENDS FLIGHTS
JET Airways has temporarily suspended all flights after the State Bank of India and consortium of lenders were unable to consider its request for ... PAGE 2
PILOTS RAISE CONCERNS
PILOTS flying for Amazon Air and DHL are increasingly concerned about the poor working conditions at Atlas Air, Southern Air and ABX Air, and ... PAGE 3 REVENUE UP AT TIME:MATTERS
HAVING had a record breaking year in 2017, sales revenue at time:matters increased by 12.7% to €121.5 million in 2018 ... PAGE 4
CONFESSIONS OF A FORWARDER
WITH a solid 45-year portfolio of success in freight and logistics, Steve Walker is a former director of the $10 billion turnover logistics specialist DSV ... PAGE 12
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Old News
U-Freight marks 40 years
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nternational freight service and logistics group U-Freight says it recently celebrated “another successful year of growth. Delegates from the company’s worldwide office and agency network gathered recently for its annual conference held in Hong Kong on 19-20 September, to review progress and plan strategy for the year ahead. Simon Wong, CEO of the Hong Kong-headquartered company commented: “One of our strengths, as a medium-sized, although growing, freight forwarding network is that we can adapt quickly to local conditions.” This year’s conference also marked U-Freight’s 40th anniverary. Wong noted: “There’s an old saying that life begins at 40. At U-Freight, as we enter our fifth decade, we are determined to extend our reach.”
Airbus opens Tianjin A320 assembly line
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irbus has inaugurated its first assembly line outside France, with president and ECO Tom Ender, and Chinese premier Wen Jiabao presiding at a ceremony in Tianjin. The A320 Final assembly Line is a joint-venture between the Toulouse-based manufacturer and a Chinese consortium comprising Tianjin Free Trade Zone and China Aviation Industry Corporation. The first aircraft assembled on the new line will be delivered to Sichuan Airlines through Dragon Aviation Leasing in mid-2009. The facility is expected to be producing four A320 aircraft a month by 2011. There are currently over 350 A320 family aircraft in operation with 12 operating in China.
Quote of the week
“If you can do business in Italy successfully you can probably succeed anywhere else in the world” Lorenzo Schettini Gheradini, CEO of Alha Group
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All flights at Jet Airways suspended
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et Airways has temporarily suspended all flights after the State Bank of India and consortium of lenders were unable to consider its request for interim funding. In a statement, the Indian airline says that as no emergency funding from lenders or any other source was forthcoming, it would not be able to pay for fuel or other critical services to keep operations going. International flights were cancelled and the last flight took off on 17 April, operating from Amritsar to Mumbai and Delhi. Jet Airways says the decision was taken after a “painstaking evaluation of all alternatives that were made available to the company and after receiving guidance and advice on the same from its board of directors”. Relevant authorities such as the Directorate General of Civil Aviation, Ministry of Civil Aviation, finance and other government institutions have been informed of the course of action. The airline also says that the company has “tried every means possible” to seek interim and long-term funding but was left with no choice but to temporarily suspend operations. In response to the announcement by Jet Airways, the State Bank of India and the consortium of Indian lenders say: “The Expressions of Interest (EOI) have been received and bid documents have
been issued to the eligible recipients today. The bid documents inter alia has solicited plans for a quick revival of the company. The bid process will conclude on 10th May 2019 … We are actively working to try and ensure that the bid process leads to a viable solution for the company.” Jet Airways has a fleet of 123 aircraft but reportedly had only been able to operate five of them. It has £900 million of debt and last month, chairman Naresh Goyal resigned from the board, along with his wife Anita Goyal, and Kevin Knight, nominee director of Etihad Airways.
Our World Cargo Awards Sponsors WE take a look at those companies that are giving their generous support to ACW World Air Cargo Awards 2019. The hotly anticipated results will be revealed at our Gala Dinner on Wednesday 5th June at The Westin Grand Hotel during air cargo Europe 2019 in Munich
Find out about other generous sponsors on page 10.
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Cargo Airline Of The Year
he largest integrated GSSA worldwide. Over 69 subsidiaries and 147 offices span more than 47 countries. More than 1000 people achieve the highest in performance, facing great challenges and going beyond personal limits, notes CEO Adrien Thominet. The Paris-based operation routinely secures 1.6 million tonnes of cargo worth 1.5 billion euros for its airline clients.
Saudia Cargo
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Air Cargo Handling Agent Of The Year
audia Cargo has an extensive global network spanning four continents, 225 international destinations, and 26 domestic destinations. It operates a modern dedicated freighter fleet of 10 aircraft and offers an ample capacity on Saudia passenger fleet with a wide range of products. CEO Omar Talal Hariri is a member of the Cargo Committee of the International Air Transport Association (IATA).
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Airfreight Forwarder Of The Year irAsia is Asia’s largest low-cost carrier group with over 240 aircraft in operations, comprising of nine separate airlines, flying to 28 countries and growing. RedCargo Logistics is the sole and exclusive Cargo Master general sales agent for the AirAsia group of airlines and has announced a strategic partnership with Malaysia’s leading express delivery provider GD Express (GDEX).
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Pilots concerned at work conditions
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ilots flying for Amazon Air and DHL are increasingly concerned about the poor working conditions at Atlas Air, Southern Air and ABX Air, and the seeming lack of interest from management to resolve issues, claim the pilots’ union. Dozens of pilots protested outside Cincinnati/Northern Kentucky International Airport on 11 April to highlight over working conditions and stalled contract negotiations. Amazon Air has major plans for Cincinnati, and will break ground on a $1.5 billion hub at the airport this May, with plans to officially open for business in 2021. Captain Mike Griffith, an Atlas Air pilot for 20 years and member of the executive co-council for Airline Professionals Association, Teamsters Local Union No.1224 tells Air Cargo Week that recruiting issues are “beyond severe” and management do not want to negotiate contracts. Concerning the pilot recruitment issues, he says that based on a seniority list released by Atlas Air, the airline has only grown by four pilots. He says: “That only touches the surface though on the effects caused by recruiting issues because the loss of experienced pilots who are then replaced by pilots with far less experience has translated into serious operational problems.” He does not feel airline managers are being honest with clients such as Amazon and DHL about the issues, saying: “To mask the problems Atlas Air is cutting corners on
AIRFREIGHT volumes at Changi Airport were down 1.5% in March to 185,000 tonnes and by 3.8% in the first quarter to 493,000 tonnes. Due to a slowdown in global trade flows – exports, imports and transhipments all weakened. In March, Singapore Airlines increased Johannesburg flights from daily to 10 a week, and Lufthansa added an additional Munich service, bringing the total to six a week.
operational aspects of the airline.” Contract negotiations have remained stalled, with bargaining of the nine-yearold contract starting three years ago, and it has been dragging on for five years with ABX for amendments to a contract that was negotiated following DHL’s departure from the North American market in 2008. Griffith says little progress has been made, with frustrated pilots quitting the airlines to fly for other airlines, and new candidates not even considering working at Atlas Air or ABX Air. He says: “Management at Atlas Air and ABX Air are making matters worse by the day, by continuing to stall and drag out negotiations in an apparent attempt to “wait out” the pilots and their resolve for an improved collective bargaining agreement that is consistent with today’s environment.” Griffith accuses Atlas Air’s management
of “hiding behind lawsuits and trumped excuses in arbitration to evade meaningful progress in good faith contract negotiations.” Atlas Air has “placed an all or nothing gambit on the outcome of arbitration proceedings” and “wasted years in legal wrangling” that has not resulted in a new contract and has stunted growth. Griffith says: “Arbitration has continued to prolong the process and lead to additional road blocks with no real communication or trust between the company and the union.” Amazon has ambitious plans for the future, but Griffith is concerned it will not be able to release its potential. He says: “Without the pilots to run its vendor airlines, Amazon Air will not be able to fulfil its logistics ambitions or let alone maintain its current operations.”
hina Airlines Cargo has become the first carrier in Taiwan to be certified by the IATA Center of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma). Introducing CEIV certification started in 2018 in a bid to standardise service processes and promote Taiwan as a hub. Eddy Liu, vice president of China Airlines Cargo Services says: “The construction of a more complete operating process and more professional personnel training standards will help ensure the quality and timeliness
of pharmaceutical logistics. We are proud to have gained the first CEIV Pharma certification in Taiwan as it represents recognition of China Airlines continued improvements to the quality of cargo services.” The airline says that temperature-controlled shipping containers introduced in 2013 have proved popular with customers, and that personnel experience, integration of ground and warehouse storage operations at Taoyuan International Airport and its central location for transhipments have boosted China Airlines’ competitiveness and profits. China Airlines says that the CEIV certification means that pharma products can be transported to all global destinations that can be reached by wide-body jets. China Airlines has transported the national satellite to the US for the fifth time, with its Boeing 747-400 Freighter landing in Miami on 15 April. The Taiwanese airline assisted the National Space Organization by flying the
Formosat-7 to Miami Airport, which was then moved to the Kennedy Space Center for launch. Formosat-7 is a weather satellite jointly developed by the US and Taiwan, designed to establish a highly reliable satellite constellation that will continue the radio occultation weather observation mission of Formosat-3. The system will provide a boost to weather forecasting, climate observation and space weather monitoring. The main body and components of the Formosat-7 weighed over 15 tonnes and were packed into nine pallets to ensure maximum shock protection, with the flight plan avoiding all known turbulence. Temperatures were maintained at 20C throughout the journey with shock-absorbing padding to be used during the loading/ unloading to minimise the amount of vibration experienced by the satellite. China Airlines says the aircraft complies with rigorous vibration and temperature-control requirements during the taxiing, take-off, cruising and landing.
ABERDEEN Standard Investment’s Airport Industrial Property Unit Trust (AIPUT) fund has secured a £55 million revolving credit facility from financial partner RBS International. The facility will provide access to capital to finance AIPUT industrial acquisitions and development projects at London airports. It says strategic opportunities are expected to surface in the months ahead as a result of Brexit uncertainty and the perceived political risk of continuing friction in global trade
policy. AIPUT has a portfolio of air cargo and airport-related property assets serving London Heathrow, Gatwick and Stansted. The £55 million credit facility supplements an existing £145 million debt facility made available in 2015. Nick Smith, AIPUT fund manager says: “With a portfolio close to full occupancy, we are keen to secure the sites and develop the floorspace necessary to help London’s airports enhance their global competitive
positions.” Jamie Bennie-Coulson, director of real estate at RBS International says: “This is an award winning fund with high quality assets that is managed by a top tier investment manager so we’re delighted that we’ve been able to support AIPUT by increasing their debt facilities. This increase will help support the fund and its aspirations whilst demonstrating our continuing commitment to the UK real estate market.”
China Airlines Cargo earns IATA CEIV Pharma
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AIPUT secures £55m revolving credit facility
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AIR Partner has appointed Kevin Macnaughton as managing director – charter, responsible for the development of the charter division’s business strategy. He will report directly to CEO Mark Briffa. Macnaughton has worked in the aviation charter industry including 13 years at NetJets. DIRECTORS and the management of Hong Kong Airlines have received court orders in relation to its management. The airline says the orders are temporary pending further confirmation by the court and will not affect the day-to-day operations of the airline. According to the South China Morning Post, the legal step was taken by former director Zhong Guosong, who triggered a hostile takeover of the airline and targets Hou Wei, Wang Liya, Sun Jianfeng and Tang Kit who all have ties to controlling shareholder HNA Group. KOREAN Air launched non-stop flights between Boston, USA and Seoul, South Korea on 18 April, with the first Boeing 787-9 Dreamliner landing in Boston at 10.33am. The Boston flight, in addition to Minneapolis/St. Paul – Seoul and Seattle – Osaka services that Delta Air Lines is launching are the first additions to their Transpacific joint venture. HAINAN Airlines will launch non-stop flights between Beijing and Oslo on 15 May using an Airbus A330-300. The airline’s first Nordic service will operate three times a week on Mondays, Wednesdays and Fridays. AIR Mauritius has taken delivery of its first Airbus A330-900 on lease from Air Lease Corporation during a ceremony held in Toulouse, France. The A330neo will be deployed on routes to Europe, India and South East Asia, and on regional routes including Johannesburg, Antananarivo and Reunion Island. ROYAL Brunei Airlines has launched direct flights to Changsha, China from Bandar Seri Begawan on 16 April. The Airbus A320neo flights are operating on a weekly basis on Tuesdays, with a second flight being added on Saturdays from 29 June. EMIRATES introduced its first Airbus A380 to Riyadh, Saudi Arabia on 21 April, making it the airline’s 51st A380 destination. Flight EK817/818 was being operated by a Boeing 777-300ER, but the A380 will be used on the route five times a week.
Have you voted yet? Voting closes tomorrow
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oting closes in 24 hours for the ACW World Air Cargo Awards 2019. Voting is secure, confidential and restricted to readers of Air Cargo Week and ACWDigital, plus other bona fide members of the worldwide air logistics community. All votes must be cast online using the official voting form on the website. Voting closes on Tuesday 30 April, 2019
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Revenue grows 12% at time:matters
HAVING had a record breaking year in 2017, sales revenue at time:matters increased by 12.7% to €121.5 million in 2018. In 2018, time:matters focused on digitisation of its service portfolio and now offers fully automated tracking information updates, invoicing and other core elements. Expanding the network was also important, with 15 stations being added in the US and one in Mexico to its Sameday Air network. time:matters acquired CB Customs Broker and Customs Broker Cargo Handling in September, expanding its operational processes and adding customs clearance and cargo handling options to its service portfolio. The onboard courier platform was further upgraded in line with customer needs, with revenue generated through the service rising
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considerably since its launch in 2017. Alexander Kohnen, CEO of time:matters says: “We will continue on this path in 2019, while working on state-of-the-art digital solutions for our customers and increasing our breadth of industry expertise for our customers in the life and health, automotive and high-tech and semi-con segments. “We are planning further expansion, especially in the Asian market and the US, and are also ready for various Brexit outcomes thanks to our many years of experience and flexible logistics solutions.” In March, time:matters Spare Parts Logistics, which operates an in-night European network complemented by tailor made services for individual customers was recertified to ISO 9001:2015 standards.
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Lower airfreight profits at Panalpina
AIRFREIGHT profits at Panalpina fell by 7% in the first quarter of 2019 despite volumes growing 8%. In the first quarter of the year, Panalpina handled 259,900 tonnes of airfreight compared to 240,500 tonnes in the same period of 2018. Gross profit per ton was down 10% to 666 Swiss francs (CHF), with profit measured in EBIT decreasing 7% to CHF 24.9 million. The EBIT-to-gross-profit margin came in at 14.4% compared to 15.1% in the first quarter of 2018. For the company as a whole, net forwarding revenue was up from CHF1.41 billion to CHF1.48 billion, and consolidated profits increased 15.8% to CHF19.2 million. Stefan Karlen, CEO of Panalpina says: “We improved profitability despite a challenging market environment and during a time when considerable management resources were absorbed by the M&A topic. This demonstrates
the underlying quality and strength of our organisation.” Following the take-over by DSV, Panalpina will not be giving an outlook for the year because it is more challenging, and also for legal reasons but Karlen promises that Panalpina will conduct business as usual. He says: “We have continued to win new business after the transaction was announced and we are determined to keep doing so in the weeks and months ahead.”
Slow start for Kuehne + Nagel
KUEHNE + Nagel profits were down 1.6% in the first quarter of 2019, with the airfreight sector getting off to a slow start. Group net turnover was up 7.7% to 5.2 billion Swiss francs (CHF) but profits were down 1.6% to CHF 181 million. Following significant airfreight tonnage growth, volumes were down 3.1% to 409,000 tonnes in the first quarter against the backdrop of a declining market. It says this was in line with the overall airfreight market, which declined 2-3%. Earnings before interest and tax (EBIT) was down slightly from CHF 81 million to CHF 80 million.
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Since the start of the year, Kuehne + Nagel has integrated the business operations of pharma and healthcare, and aviation logistics provider Quick International Courier, contributing to a significant increase in gross margins. Dr Detlef Trefzger, CEO of Kuehne + Nagel International says: “Kuehne + Nagel got off to a good start in 2019. Once again, we increased our net turnover, gross profit and EBIT. However, we find ourselves in an environment in which global economic growth is noticeably slowing. In this volatile market environment we are well positioned.”
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Moscow promotes Russia-China trade
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oscow’s Sheremetyevo International Airport and Moscow Cargo held a presentation of the cargo complex to Chinese partners to develop Russian-Chinese cooperation. Participants included Andrey Nikulin, first deputy general director of Sheremetyevo International Airport; Mikhail Chuvilkin, first deputy general director – director for production of Moscow Cargo; Alexey Meshkov, deputy director of the Asia, Africa and Latin America department of the ministry of industry and trade for the Russian Federation; and Vitaly Mankevich, president of the Russian-Asian union of industrialists and entrepreneurs. Xui Qinli, representative from the China Council for the support of international trade and the China Chamber of International Commerce in the Russian Federation; representatives from the Sheremetyevo customs office and top managers from Chinese airlines and major importers were also present. A visit to the cargo complex was organised for the participants, during which Moscow Cargo representatives introduced the guests to the technical capacity of the terminal and show the operation of the automated cargo handling and storage systems. Nikulin says: “We managed to achieve outstanding results in the
ACWBITES B&H Worldwide has signed a multi-year deal with aircraft and engine components supplier AOG-247 for warehouse and inventory management services at London Heathrow and Frankfurt airports. B&H will provide full inventory management at both locations including complete consignment handling and access to the B&H FirstTrac online portal.
development of international cooperation thanks to Sheremetyevo airport’s efficient long-term planning and large-scale investment programme. We understand the needs of airlines and are ready to meet them in full.” Trade between Russia and China increased by 28% to over $100 billion, with Russia ranking first among China’s 10 largest trade partners in terms of trade turnover growth.
RICHARD Carrick has joined Air Charter Service as a non-executive director of the company’s board. He has extensive marketing and general management experience of tour operating, travel retailing and airlines. He has been CEO of both MyTravel and Hoseasons, as well as a six-year sting at PrivateFly. RUNWAY II at Budapest Airport will be closed for about eight weeks while it is equipped with a new instrument landing system. The system will make it possible for aircraft to land and take off when visibility is 15 metres vertically and 50 metres horizontally.
ACE ready for take off ACE Belgium Freighters has received its Air Operator’s Certificate as it gets ready to operate scheduled and charter services from Liege Airport. The airline received the certificate on 18 April from the Belgian Civil Aviation Authority and will start commercial cargo operations with scheduled flights to New York JFK and plans to provide charter services. The fleet consists of one Boeing 747-400BCF, OO-ACE, and a second aircraft will join the fleet within the year, according to the airline’s LinkedIn account. ACE’s commercial entity, Challenge Air Cargo will manage selling capacity, which has already opened offices in France, the Netherlands and Belgium, with another one planned for Germany. ACE says it represents “a real opportunity” for the Belgian airline industry, saying: “Located at the crossroad of Amsterdam, Paris and Frankfurt, this strategic position allows our company to establish a considerable number of destinations.” The airline adds: “Through our experienced team, the ACE goal is to build strong partnerships with our customers and to ensure maximum reliability and punctuality within a flight network.”
Pineda joins TIACA board EMIR Pineda of Miami International Airport’s operator, MiamiDade Aviation Department has been elected to the board of The International Air Cargo Association (TIACA). The trade and logistics manager for the marketing division started his career as an intern at the airport in 1988 before embarking on a career that has seen him work at both Dallas Fort Worth Airport and Air France KLM Martinair Cargo. He also worked as the commercial route development manager for Cargolux, responsible for sales and operations throughout Latin America. Pineda says it is an “honour” to join the TIACA board, saying: “For my tenure I would like to continue to pivot the association towards innovation, thus adding value to our members and the entire global logistics industry.” He adds: “In addition, I hope to attract greater focus and participation from Latin America, which has historically been under represented in the association.” Miami is recognised as the gateway to Latin America and the Caribbean, handling 83% of air imports and 79% exports to/from the region Sebastiaan Scholte, chairman of TIACA and CEO of Jan de Rijk Logistics says: “TIACA has been growing its global footprint as part of our new mission and vision for the Association. MIA is the main gateway between the Americas, which is an important growing region for us.”
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fter two years of outstanding growth, Cismat will not let standards slip, CEO Francesco Traverso tells Air Cargo Week. He says that 2017 was an “outstanding year” and that 2018 was “even better” with growth of 24%. Growth was very strong from the last quarter of 2016 for the whole air cargo industry, continuing throughout 2017 and well into 2018, with Traverso commenting “In 2018, we were thinking maybe it will go down but it went up.” Like much of the industry, Traverso has noticed the slowdown, admitting that the first quarter of 2019 was “not good”. He says: “It doesn’t look like it will be a best ever, 2017/18 was a perfect period. We are more or less back to normal activity.” Traverso notes that demand from Asia has, in his words, “collapsed”, saying: “I’m not sure why, it’s possible it’s politics. Both imports and exports are down. I have a friend in sea freight based in Genoa and he has seen a decrease.” Cismat was established in 1982, making it one of the oldest in Italy and in Europe. It has three offices in Italy, based in Genoa,
Milan Malpensa and Rome Fiumicino. The company offers more than basic GSA services to provide added value to customers. Traverso says: “We also have our own trucking network both domestically and internationally, not many offer this. Sometimes customers have a shipment from Asia and want it trucked from Rome to elsewhere. Usually you would leave this to the handler. This is something others are not willing to do.” He believes that GSAs in Italy are very professional, and something Traverso wants to avoid is a conflict of interest. Traverso says: “If you have two airlines direct to the same destination we will not share information. They are part of a family, not just an account.” As a major manufacturing and export nation, Italy produces goods that the world wants, not just fashion but fruit and vegetables, spare parts, machinery and other cargo. With a population of 60 million people, that also creates an important import market, with a lot of cargo coming from China. Traverso says: “In a few years we’ve had double the volumes, I can’t ask for more.”
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Wallenborn well placed with Milan hub AS the main airport for southern Europe and a top 10 airport in Europe, it makes sense for Wallenborn to have its main Italian office at Milan Malpensa Airport. Volumes may have fallen at Malpensa by 3.2% in 2018 but it remains the top airport in Italy, handling 55% of Italian cargo. Wallenborn saw volumes decline in line with the airport but after four years of growth and the general slowdown in the whole air cargo market, the Luxembourg-headquartered company is not worried about a slow year. The company says: “For the coming year Wallenborn expects a recovery in the Italian cargo volumes due to growing e-commerce and an increasing number of flights to the US out of Italy. This is supported by infrastructure developments at Malpensa that will lead to increased capacity and further solidify the hub as a leading cargo airport.” Italy is the home of luxury goods, whether it is the fashion houses of Milan such as Gucci, Prada or Dolce & Gabbana to name a few, or car manufacturers such as Ferrari or Lamborghini. Highly Vulnerable Cargo along with general cargo, temperature controlled and outsized products are a major focus area for Wallenborn. It says: “Our commitment to safety and security is amongst the best in the industry and all HVC is transported using our own security fleet. Wallenborn has been TAPA TSR certified since 2012. It was the first asset-based company in the EMEA region to be certified at three levels – levels 1, 2 and 3.” Wallenborn provides connections from Italy to major European airports including Amsterdam, Paris Charles de Gaulle, Frankfurt, Liege, Luxembourg and Munich, as well as regional connections in Austria, France, Spain and Switzerland. Wallenborn says: “Import cargo arriving at Malpensa, Rome Fiumicino and Venice is delivered to all Italian cities. These services are used by airlines, freight forwarders, GSA’s and integrators for both import and export.”
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2019 likely to be a year of transition in particular with regard to Italian exports. Political and economic international variables make it difficult to make projections for the current year. It seems that 2019 will be a year of transition, not particularly productive.” Some products have done well, particularly fashion and pharma, with the latter benefitting from Alha Group having earnt IATA CEIV Pharma certification at its Milan Malpensa cargo terminal in September 2015. Alha Group also joined Pharma.Aero in October 2017, a platform for the air cargo community to foster collaboration between CEIV Pharma certified stakeholders. Since gaining certification, Alha Group has developed and invested in infrastructure to handle pharmaceutical products at both Milan Malpensa and Rome Fiumicino. Schettini says: “We are working closely with airlines companies to study new solutions and technological developments to ensure compliance and improvement of the cool chain management processes.” Alha is the first Italian ground handler to introduce the CoolBox to its fleet, a refrigerated dolly for pharma transportation on tarmac. The new CoolBox will be presented at air cargo Europe in
Munich in June. Schettini says: “The larger version CoolBox2, that can transport two main deck pallets with independent temperature settings, will be at the exhibition centre, just few steps away from our booth, and we look forward to introducing it to all our visitors.” Looking to the future, Schettini says the Italian airfreight market will become increasingly competitive, with the need to provide high quality service and ability to react being essential to remain competitive. He is confident that Alha is in a strong position, saying: “We believe we have all the possibilities to continue being a top Italian player.” Schettini admits that Italy is a “complicated country” to do business in, and that other European countries are more competitive due to their job security and tax incentives. He says: “For this reason I think that if you can do business in Italy successfully, you could probably succeed anywhere else in the world.”
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fter a unique year in 2017, 2018 was a slower year and this year has been below expectations so far, Lorenzo Schettini Gheradini, CEO of Alha Group tells Air Cargo Week. He says that with the market demand and record volumes, 2017 was a unique year, not comparable with any other year in history. Last year was more regular, with lower performance in the second half. Schettini says: “First quarter of 2019 was below expectations,
Brescia is designated cargo hub for Garda
AS the designated cargo airport within the Garda Aeroporti group, facilities at Brescia Airport are being upgraded to cope with growth. Most scheduled flights from Brescia are postal services for the domestic market using small aircraft such as Boeing 737s and ATRs, serving the islands and Italian cities. DHL also has a peak season service with two flights a day, with group cargo director Massimo Roccasecca saying: “We predict this will start back up. We are working together with the client to have a permanent base.” Charter operations are very important for Brescia, having carried out 189 in 2018, varying from small aircraft with one tonne of cargo to much larger jobs. Roccasecca says: “For the operator we have to help fill the return leg, the return leg is usually the main challenge for the operator.” Speaking about 2019 so far, Roccasecca says: “We have seen a lot of improvements for e-commerce, this is by far the most promising one for growth. This traffic is not going to the airlines but to the postal and express services.” Located in Italy’s Lombardy region, the industrial heart of the country, Brescia faces competition from airports such as Milan Malpensa and Linate. Brescia is also well connected by roads, with three major motorways near the airport helping it reach 60% of industry. Roccasecca says: “On top of our strategic location, we don’t have passenger traffic. We don’t encourage passenger traffic and we don’t want it. That is done at Verona and Venice airports. Brescia is focused on cargo.” Construction of a third warehouse will commence soon. Roccasecca says: “One warehouse is for general cargo, a second for express operators and the third one represents a new general cargo operation.” The runway at Brescia will also be extended by 500 metres, with Roccasecca saying: “Last August we spent close to €2 million redefining the paving. The next step is to extend the runway, it has already had approval by the national authorities. Our plan is to complete the extension of the terminal and runway by the second half of 2021.”
aircargoweek.com
ACW 29 APRIL 2019
7
NEW TECHNOLOGIES
We asked companies that operate tractors and trailers to move airfreight and general cargo on Europe’s road four simple questions: 1/ Would your company consider investing in driverless trucks for your road feeder services. If not, what are the reasons stopping you?
In principle yes, but only in the future, not right now. There are still many regulatory and infrastructure hurdles to overcome before this type of technology can make effective headway in a practical sense. Audrey Weedon. Wallenborn Transports Of course we would consider investing in driverless trucks. It would be safer, you could increase the truck utilisation and of course save labour costs. However the total cost of ownership should ideally be lower than now, meaning that the investment/purchase price should not be cost prohibitive. Sebastiaan Scholte, CEO, Jan de Rijk Logistics Driverless trucks is possibly something we will look at in the future but we have no short term plans to replace our fleet until it becomes not only economically viable but also legally and procedurally possible. I believe we are some years away from this yet. Gavin Borthwick MILT, Greencarrier Freight Services (UK)
2/ What effect do you think driverless trucks will have on the industry? Long-term we believe they are the future. A human element will always be necessary in some capacity, but driverless technology can go a long way in eliminating many of the costly human factors such as limited work hours, holidays, accidents from fatigue or human error, etc. Driverless technology can also help solve the current workforce problem of driver shortage. Audrey Weedon. Wallenborn Transports Increased utilisation, less labour costs. Currently we are ageing (especially in Europe) and it is harder to find drivers. This would solve the problem of scarcity of labour as well. Regulations, infrastructure and insurance liability will have to be sorted out and be ready before driverless trucks can be rolled out massively. At Jan de Rijk we have already experimented some years ago with auto docking, meaning a driverless truck puts/pulls the trailer to/from the docks. This could be potentially rolled out earlier, since it concerns own terrain and could be easier with insurance liabilities. Sebastiaan Scholte, CEO, Jan de Rijk Logistics I believe that as a whole, the transport industry is reducing the amount of human input required to operate. Driverless trucks is just one part of this process. As we see both warehouses/supply chains and logistics automated, it can only increase accuracy and transparency for both customer and carrier. Gavin Borthwick MILT, Greencarrier Freight Services (UK)
3/ What do you think can happen to all the drivers no longer needed in the future? We don’t believe this will be a big issue. Currently there is a significant driver shortage across Europe and the US, and no real plan to change this. A significant percentage of the driver workforce is also 50+, ie. part of an ageing population that will look to retire in a decade. We also believe that whilst driverless trucks will be a big part of the future, there will always be a need for drivers too. Audrey Weedon. Wallenborn Transports We already have problems finding drivers now. Having said that, I do not think we go in one bang to full driverless trucking. First it will be on certain lanes, where a driver will still be in the cabin. Sebastiaan Scholte, CEO, Jan de Rijk Logistics I believe their experience and knowledge will still be required and valued in the transport industry for planning and operational purposes. Gavin Borthwick MILT, Greencarrier Freight Services (UK)
4/ What will go first: truck drivers or diesel engines? Diesel engines. Audrey Weedon. Wallenborn Transports My guestimate would be that diesel engines will go first. Especially legislation around driverless trucks is very slow. Sebastiaan Scholte, CEO, Jan de Rijk Logistics Diesel engines. I believe we are far closer to the elimination of pollutants from vehicles than we are to trusting AI with a car, let alone a HGV. Road networks in general around the world have some way to go and are yet to be developed and maintained properly before automated and driverless trucking will be seen as a regular occurrence on our roads. Gavin Borthwick MILT, Greencarrier Freight Services (UK)
What do you think? Get in touch with the editor: james.graham@azurainternational.com ACW 29 APRIL 2019
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Driving to the f
Four questions, one future
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ROAD freight vehicles may lag behind passenge electric and driverless technology … but they a
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any industry outsiders consider that airfreight spends 100% of its time on an aircraft but few realise that it will spend 100% of its time being moved to an from an airport, often by a road vehicle, on the ground. Trucks and commercial vehicles, such as vans, have been used since the start of aviation to transport freight intended for flight. What is very much in flux now is their control methods and means of propulsion. Car manufacturers may have stolen a march on truck makers by pioneering autonomous, driverless vehicles but the truck makers are catching up. Driverless trucks could very well be a regular presence on many roads within the next decade.
Electric avenue
In a recent blog, Gavin Borthwick MILT of Greencarrier Freight Services (UK), spelt out his thoughts on how electricity could soon move the world’s truck and van fleet. He blogged: “Today, automated and connected vehicle technologies are among the most heavily researched automotive technologies. What we see now is only a fraction of what will be developed for the future. “The major global truck manufacturers are starting to invest in electric vehicle technology and preparing to put the first generation of electric trucks on the road. In late 2017, Tesla Inc. introduced its electric Tesla Semi with production planned for 2019 and Volvo Trucks recently delivered its first all-electric trucks in Sweden.” A recent report in the Financial Times from the Hannover truck and bus show “feels deceptive”. Everywhere the reporter walked, there were electric and hybrid trucks, “giving the impression that new technology is on the ascendant.” However, in the real world, whatever green thoughts a company my espouse, ‘whole life costs’ (the lifetime costs of buying and then operating a vehicle) still matter. This is why 97% of heavy-duty trucks sold in Europe this year are diesel, largely down to costs. Buyers of trucks and buses are unwilling to pay more for electric vehicles that do little to boost profits. This creates a problem for manufacturers, who want to sell more electric vehicles. The chief executive of Daimler Truck, Martin Daum, was quoted by the newspaper: “If you have a truck that costs €100,000 and another that costs €150,000 but does the same job, which are you going to buy?” While battery prices are coming down, the prices for carbon burning engines are going up as manufacturers were reported by the FT to be switching to electric.
What a gas
At the same time electric power trains are being developed, liquefied natural gas (LNG) powertrains have taken centre stage.
aircargoweek.com
DHL Freight, one of the leading providers of road freight services in Europe, has deployed one of the very first liquefied natural gas (LNG)-powered Iveco Stralis long-haul trucks capable of towing a mega trailer. During a year-long trial period the truck will operate as a daily shuttle between DHL’s logistics center and a BMW Group production plant in southern Germany. Thanks to a higher loading height and increased fuel efficiency, mega trailers in road transport are particularly important for the automotive industry, making BMW Group the ideal partner for testing in Germany. Since last year’s contract renewal with the BMW Group, DHL has been managing the automotive manufacturer’s supply chain in seven additional areas, as well as all road transport between 17 countries. “The combination of LNG truck and mega trailer is a promising sustainable solution for automotive logistics. We are able to meet the customer’s transport requirements in the best possible way, while also significantly reducing greenhouse gas emissions along the supply chain. “The increase in fuel efficiency and proven reduction of harmful emissions that comes with using natural gas help to make long-distance road transport more sustainable,” states Uwe Brinks, CEO DHL Freight. DHL Freight has gained initial experience with LNG trucks in Belgium. Since summer 2018, four of these heavy-duty, long-haul trucks have been part of a sustainable transport solution for one of the world’s largest developers and sellers of athletic footwear and sportswear. Now, for the first time, a natural gas-powered truck can be combined with a mega trailer, a feat previously not possible due to tank design. An internal loading height of three meters makes this equipment a preferred solution in the auto-
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assenger cars in terms of they are catching up fast
DHL Freight pilots first LNG truck with mega trailer in Germany
500 StreetScooters for Yamato order
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apanese logistics provider Yamato has ordered 500 electric light utility vehicles from StreetScooter, a subsidiary of Deutsche Post DHL Group, to offer more environmentally friendly service and a better working environment. As part of the close development partnership between the two companies, the electric vehicles have been modified to meet both Japanese
standards and the specific needs of Yamato, including right-hand drive. Delivery is scheduled for operation during fiscal year 2019. Yutaka Nagao, representative director, president and executive officer of Yamato Transport said: “While restructuring a sustainable last mile delivery network, it has been a big challenge for us to develop new delivery vehicles with the consideration of our
motive sector as it offers not only more loading capacity but also the possibility of loading larger spare parts.
£2M last mile ecargo bike grants available
Smarter alternatives
According to Borthwick, Greencarrier Freight Services UK offers a “sophisticated and energy-efficient trucking solution with high technological advancements.” Its fleet of 22 tractors and 100 trailers is on a telematics system, which enables the company to monitor and control driver behaviour. The telematics system dramatically improves key areas such as reduced idle time, driving within economy, cruise control usage and engine load time. “All trucks are fitted with air deflector kits for the purpose of reducing drag, which in turn improves fuel efficiency and reduces carbon dioxide emissions,” he blogged. “Our trucks and trailers run on engines based on the latest EU standards for decreased emissions and all of our drivers are CPC certified. A CPC certificate is a European-recognised accreditation that includes a module for safe and efficient driving behaviour, also reducing the environmental impact.” He continued: “Our fleet operates across the UK, Nordics, Baltics and mainland Europe. We also offer consolidation to maximise speed and efficiency and minimise the mileage we have to cover for each shipment. “With high technological advancements, our eco trucking solution provides major benefits in terms of improved efficiency and reduced environmental impact. We are also able to provide our customers with emission reports and help with ensuring a concerted effort to reduce their own environmental impact. With lower emissions, a knock-on benefit is a higher economy return from the truck.”
employee’s point of view. This encounter with StreetScooter is truly exciting to us, and we’re looking forward to our first step towards a resolution through joint development.” Achim Kampker, the CEO of StreetScooter, said: “We’re truly thrilled that Yamato has chosen our electric vehicles. It’s fresh validation that our vision of building customised, industry-specific vehicles is blossoming, this time on an international scale. “The strategic cooperation with Yamato is thus an important step on the road to tapping the Japanese market for electric light utility vehicles.” Yamato has ordered 500 Work Pure. This model is StreetScooter at its most basic since the variant has no truck body. Truck bodies will be assembled and installed on Work Pure chassis by the Japanese company Toprec, and will also be suitable for cold-chain applications. Maintenance and repair will be performed by the Yamato Transport’s group company, Yamato Autoworks, which is responsible for the group’s delivery fleet and also functions as a fleet services provider for third parties.
Oxford dons its hat for new ecargo bike
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NEW technology-led, eCargo bike manufacturer from Oxford, Electric Assisted Vehicles Limited (EAV) has launched with Project 1 (P1) eCargo bike at the eBike summit in Oxford in April. EAV has assembled a team of highly qualified and experienced engineers from the automotive, motorsports and aerospace industries in order to produce a ‘culturally focused’ solution to sustainably disrupt the way products and
services are moved. Their approach has been to conceptually ‘engineer down’ from current Light Commercial Vehicles rather than ‘engineer up’ from the humble bicycle to transform urban mobility for the better. In doing so, operators of the P1 will still find many of the elements of using a van they are used to but with the immense efficiencies and zero emissions of the eCargo bike, says the company.
aircargoweek.com
FROM 1 April 2019, the Energy Saving Trust has encouraged applications for a new £2million fund set up by the UK’s Department of Transport to help companies invest in electric cargo bikes to fulfill last mile deliveries. The eCargo Bike Grant Fund is available to companies operating across England. It comes as there is increasing interest in electric bikes to facilitate short-distance deliveries. The funding available is conditional on recipients signing up to a robust code of practice developed in association with the UK Cycle Logistics Federation and the Bicycle Association and includes cycle safety best practice. “Applicants can benefit from grant funding for up to 20% of the cost of a new ecargo bike up to the value of £1,000 per bike,” said Matthew Eastwood, head of transport at Energy Saving Trust. The UK’s cycling and walking minister Jesse Norman said: “This fund will help to cut congestion, improve air quality and encourage companies to play a part in creating a cleaner, greener future.” Applications for funding will be assessed on a first come, first served basis.
In the next New Technologies section, we look at RFID. May 27 2019 issue ACW 29 APRIL 2019
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ACW WORLD AIR CARGO AWARDS 2019 Our generous sponsors ... SAVE (Brescia, Verona, Garda & Venice Airports)
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Air Cargo Charter Cargo Broker of the Year AVE management operations concentrate mainly on developing the infrastructures and route network of the Venice-Treviso airport system, the third largest Italian
airport. SAVE Group owns a 27.65% stake in Brussels Charleroi, the only Italian airport management company to participate in the management of a foreign airport.
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Turkish Cargo
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Air Cargo GSA Of The Year
ffering service to 124 countries and being the fastest-growing air cargo brand around the world, Turkish Cargo has been carrying out the air cargo transportation operations of Turkish Airlines, the “rising star� of Turkey, since 1933.
Air Logistics Group
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Champagne Reception
ir Logistics Group is a major player in the world of cargo General Sales & Service Agents (GSSA). Air Logistics Group provides a variety of outsource solutions to airlines, enabling them to achieve a cost-effective presence in the airfreight market.
AF/KLM Martinair Goody Bags
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ir France-KLM-Martinair offers customers a network covering 314 destinations in 116 countries thanks to Air France, KLM and Transavia. Air France-KLM-Martinair operates up to 2,300 daily flights, mainly from hubs at Paris CDG and Amsterdam-Schiphol.
Air Charter Service
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Menus
ir Charter Service is a global air charter broker company with 25 worldwide offices. It offers cargo aircraft charters, as well as onboard courier solutions. It arranges almost 15,000 contracts annually with revenue of close to $700 million.
WebCargo by Freightos
W Napkins
ebCargo by Freightos is a software company that seeks to allow forwarders to optimise rate management tasks and bring them online. It developed web-based software as a shortcut to all freight market options.
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ACW 29 APRIL 2019
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Int’l Logistics
ACW 29 april 2019
11 18/04/2019 12:40
HE PRETENDS TO KNOW WHAT HE’S TALKING ABOUT
Confessions of a travelling forwarder
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With a solid 45-year portfolio of success in freight and logistics, Steve Walker is a former director of the $10 billion turnover logistics specialist DSV and founder of SBS Worldwide. He’s ratcheted up the Air Miles over the years.
t’s true that technology is transforming freight forwarding today.
And while it may simplify or even replace many processes, people and relationships will remain key to success. Virtual meetings have their place but someone will still have to get on the plane to make that personal connection, and I hope they will have as much fun as I have had……... And I hope they will be more patient, calm, informed and reasonable than I reflect I have been..................
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atience is a virtue and, as you can see, not one of mine. But I am aware of it, and do moderate my impat ience. Another reason why, after every meeting, it’s worth thinking ‘what have I lea rned there, and what cou ld I do better!’
osty airiling at fr m s s s e tl ! oin the system ntee it’s p can guara upgrade in I n , a ts s h a ig w fl r of eve fter 100s en there n n staff, wh -i k c e h c port
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always calculated the cos t of an upgrade, by the number of customs entries we wo uld have to complete to pay for it………. sometimes I jus t wished I’d have just pai d for it myself!
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enjoy mentoring sales manag ement, and while I advocate assertiveness, there needs to be sen sible limits.......
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person who hy does the one s erhead bin he ha forgets which ov be to ve always ha put his case in, ....... in front of me?.... back down inches his way ... inevitably he until it finally ng all the bins, the aisle, checki S CASE!! HE CHECKED HI dawns on him -
Steve Walker when he’s not flying
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