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The weekly newspaper for air cargo professionals No. 1,056

4 November 2019

Let’s disrupt like it’s 1919

From G-EASI to the modern day

Drone port to open in Edmonton

rone Delivery Canada and Edmonton Regional Airports Authority have joined forces to create the first drone delivery airport in Edmonton. The drone technology company and airport authority will open flights from Edmonton International Airport using DDC’s DroneSpot take-off and landing zones utilising its flight infrastructure. They will implement, promote and market DDC’s drone delivery services in controlled airspace to new and existing customers. Operations will be conducted in accordance with the Canadian Aviation Regulations and Transport Canada flight authorisations, and are

subject to DDC obtaining all required regulatory approvals. Michael Zahra, president and CEO of DDC says: “We will continue to work with ERAA and Transport Canada to define particular routes, and with ERAA and Air Canada to negotiate revenue metrics and other commercial terms, to be announced in future press releases. Given the potential size and scope of this disruptive offering, revenue outlook could be significant while concurrently bringing tremendous logistical benefits to the region.” The initial term of the agreement is five years with additional one-year terms unless it is formally terminated. Myron Keehn, vice president of air

LATAM Airlines Brazil will operate weekly flights to Mount Pleasant in the Falkland Islands from Sao Paulo, starting on 20 November.

The Boeing 767 service, which will also stop in Cordoba, Argentina once a month will carry 190 passengers and increase freight capacity, mainly

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INSIDE ALBION TO REPRESENT PRIME

ALBION Aviation Group has been appointed general sales agent (GSA) in Europe for Prime Aviation. As the GSA, Albion Aviation will exclusively ... PAGE 2

service and commercial development at Edmonton International Airport says: “Together with our long-standing partnership with Air Canada, we look forward to expanding DDC’s network of customers at EIA’s Air-

port City, the Edmonton Metropolitan Region, and other strategic partners. DDC’s DroneSpot at EIA elevates intermodal connectivity to support the growing e-commerce, pharmaceuticals, courier and oil & gas sectors.”

carrying perishables to and from the islands. LATAM was chosen to operate the service in December 2018 following a tender process between the governments of the UK and Argentina, to provide an international air link to Mount Pleasant. Nicolas Salazar, vice president of network at LATAM Airlines Group says: “With the addition of LATAM’s new Mount Pleasant service, we will double the number of commercial flights to the islands and provide direct access to our São Paulo hub, offering connections with destinations throughout South America, North America, Europe, Africa and Asia. We are proud to be the only airline group to connect

the most iconic island destinations in South America with the world.” Twice a month, flight number LA8210 will depart Sao Paulo Guarulhos at 09:30 on Wednesdays, arriving in Mount Pleasant at 14:35. The return flight, LA8211 will leave Mount Pleasant at 16:50 and arrive in Sao Paulo at 21:35. On the second Wednesday of each month, southbound flights will stop in Cordoba, and the return leg between Mount Pleasant and Sao Paulo will be non-stop. The following Wednesday, the southbound service will go non-stop between Sao Paulo and Mount Pleasant, with the return service stopping in Cordoba.

LATAM Airlines to fly to the Falkland Islands

FAIR@LINK GOES LIVE

THE FAIR@Link portal has gone live at Hamburg Airport Cargo Center after a six-month test phase. With the platform, which was developed by Dakosy ... PAGE 3 ECS PROTECTS MARKET SHARE

DESPITE the market falling at double digit rates, BCS Air has been able to maintain its market share, João Ferreira tells Air Cargo Week ... PAGE 7

3+2 = TIACA’S VISION

FIRST of all, sustainability is not just about being green or about environmental issues. There are broader issues linked to ... PAGE 10

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Albion to represent Prime Aviation in Europe

lbion Aviation Group has been appointed general sales agent (GSA) in Europe for Prime Aviation. As the GSA, Albion Aviation will exclusively sell Prime’s network on a per kilo basis, and offer full and part-charter capacity from the UAE to destinations in the Middle East, CIS and Africa. Prime Aviation operates scheduled services from Sharjah Airport to Erbil and Sulaymaniyah in Iraq using Airbus A300B4Fs and IL76-TDs. Lewis King (pictured), director of Albion Aviation Group says: “Representation of Prime Aviation in the European market is in line with the group’s vision to become an all-encompassing aviation company. As a group, we believe we have strong expertise in both scheduled cargo sales and charter sales and we look forward to offering

Prime’s bespoke network to the European cargo market.” Syed Wazeer, managing director of Prime Aviation says: “Partnering with a reputable aviation company such as the Albion Aviation Group gives us much needed exposure to the European market. We look forward to working with the team at Albion to help expand our service offerings in the European market.” King tells Air Cargo Week that the main types of cargo that will be transported are pharmaceuticals, oil and gas parts, and electronics. He also says the contract is in line with

Albion’s expansion plans to start its GSA products, and the plan is to offer Prime Aviation’s Iraqi airfreight network to European-based freight forwarders and charter brokers.

Hactl handles Southern Air flights

HONG Kong Air Cargo Terminals (Hactl) has been awarded the contract to provide ramp handling for Southern Air. The subsidiary of Atlas Air Worldwide Holding operates 21 rotations a week through Hong Kong, serving Anchorage, Cincinnati, New York, Miami, Los Angeles, Leipzig, Milan, Sharjah, Bahrain and Seoul. Services

to Hong Kong use B777Fs with most of the space being allocated to DHL Express. Vivien Lau, executive director of Hactl says: “This enables us to provide them with the enhanced efficiency of a seamless terminal- and ramp-handling service – just as we now do for over 40 other freighter operators in Hong Kong.”

FEDEX Express has continued to modernise its European air services by introducing a new Boeing 767 Freighter on Madrid-Paris flights. The 767 offers 41 tonnes of cargo capacity, 16% more than its predecessor and is also 9% more fuel efficient. The aircraft operates five times a week and connects FedEx hubs in Madrid and Paris Charles de Gaulle,

one of its major hubs alongside Cologne and Liege. Paloma Romero-Salazar, vice president operations Spain and Portugal for FedEx Express says: “Modernising our fleet with cleaner, quieter, and more efficient aircraft is a top priority for FedEx Express and this new freighter represents another exciting milestone in this process.”

FedEx adds 767 on Madrid services

FLYING BACK TO THE PAST

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AMERICAN Airlines celebrated the 75th anniversary of its first cargo flight in October. Can there be a better image for going back to the future than this apron shot?

Quote of the week

“There was nothing to disrupt!” Instone Air managing director Jeremy Instone on whether his family could be called ‘disruptors’ for launching an airline in 1919.

ACW 4 NOVEMBER 2019

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FAIR@Link goes live in Hamburg

ACWBITES A LET L-410UVP operated by Abeer Air Services has been written off in South Sudan when it came down 15 kilometres from Bor on Sunday 27 October at around 13:00. The aircraft was flying between Walgak Airstrip and Bor Airport. Aviation Safety Network reports that the left-hand wing and horizontal stabiliser bent upwards, the righthand wing separated at the engine and the nose section was demolished.

he FAIR@Link portal has gone live at Hamburg Airport Cargo Center after a six-month test phase. With the platform, which was developed by Dakosy, forwarders can book time slots for deliveries meaning shorter waiting and handling times, greater transparency and improved documentation for handling agents. The system can prepare export customs declarations and automatically submit the electronic forms to customs upon entry to the Hamburg Airport Customs Office geofence area. Alexander Muller, head of cargo at Hamburg Airport says: “The new platform is an important step into the digital future for us. With FAIR@Link, we can significantly

improve handling processes and manage the increasing volume of traffic on the ground more efficiently. At the same time, we increase sustainability and promote environmentally compatible growth for the location.” Forwarders Cross Freight, Delta-Stallion, a.hartrodt and Sable participated in the pilot, along with handling agents LUG and Swissport, as well as the Hamburg Airport Customs Office and the Hamburg Forwarding Agents Association. Ulrich Wrage, CEO of Dakosy is pleased to support digitalisation in Hamburg, saying: “Through connectivity and intelligent

process support, FAIR@Link can optimise the physical processes between companies and achieve significantly faster and more transparent processing. In addition, the platform promotes ecological concerns, as optimised traffic management and reduced check-in and waiting times lead to CO2 savings. And it saves paper, too.”

DNATA has joined forces with Wallenborn Transports in the Middle East through the acquisition of a Dubai-based premium road

feeder service provider. Wallenborn has completed the acquisition of Agility Global Logistics’ interest in dnata PWC Airport Logistics (DPAL), and will now embark on a partnership with dnata through DPAL. The parties, who have agreed not to disclose the details of the transaction, will see the companies develop new products and services, and enter new markets. Bernd Leo Struck, senior vice president UAE cargo and DWC airline services at dnata, and chairman of dnata PWC Airport Logistics says: “We are driven to provide superior services to the regional market.

Joining forces with Wallenborn, a leading air-cargo road feeder services operator, helps us enhance our position in this segment and exploit business opportunities both in the UAE and internationally.” Frantz Wallenborn, president and CEO of Wallenborn Transports says: “This new venture supports my long-term vision to enhance RFS in the GCC region and make supply chains more effective and efficient. We will extend the range and quality of RFS services from, to and within the UAE and invest in digitalisation and environmental initiatives that will create dynamic and sustainable opportunities for our customers.”

dnata joins forces with Wallenborn in the Middle East

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21 Air has applied to the Canadian Transportation Agency for a Canadian Foreign Air Operator Certificate to operate scheduled and non-scheduled services between the USA, Canada and beyond. 21 Air has also applied to the US Department of Transportation for a Statement of Authorization to wet-lease an aircraft from a Canadian cargo carrier. AMERICAN Airlines will add services to New Zealand with non-stop flights from Los Angeles to Christchurch and Dallas Fort Worth to Auckland from October 2020. Three flights will be operated to Christchurch from 25 October to 27 March 2021 using a Boeing 787-8. Flights from Dallas will operate from 25 October to 25 March three times a week using a 787-9. FREIGHT tonne kilometres were down 6.5% to 5.9 billion in Asia Pacific, says the Association of Asia Pacific Airlines. Capacity in freight available tonne kilometres were down 0.3% to 9.8 billion, pushing down load factors by four percentage points to 60.4%. Between January and September, demand was down 5.8% to 52.3 billion, capacity was up 1.4% to 89 billion and load factors declined 4.4 percentage points to 58.7%.

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ACWBITES STAN Deal has succeeded Kevin McAllister as president and CEO of Boeing Commercial Airplanes, and Ted Colbert is filling Deal’s old job as president and CEO of Boeing Global Services. Vishwa Uddenwadiker has taken Colbert’s role of interim chief information officer and senior vice president of Information Technology and Data Analytics. Boeing’s nine month profits fell 95% to $374 million as 737 MAXs remain grounded. ROYAL Air Philippines has picked Asia Airfreight Terminal as its cargo terminal operator in Hong Kong for routes to and from the Filipino holiday island of Bohol. Two passenger charter flights have been operated per week since 30 September using an Airbus A319. The flights are also transporting perishables including fruit.

ACS becomes DHL Parcel Union partner

DHL has extended its European parcel network to Cyprus through a partnership with ACS Air Courier Services. The Cypriot parcel company will become a DHL Parcel Union partner as part of its Parcel Connect, a Europe-wide standardised parcel delivery and return service. Customers in Cyprus will be able to receive package notifications via SMS or e-mail and specify time or alternative delivery locations via the app. Saturday deliveries, shipment tracking and direct delivery to parcel shops will be included in the new services. Alkis Matsis, CEO of ACS Air Courier Services says: “Utilising our extensive presence throughout the island, including 40 Service Points and 70 delivery vehicles, the partnership gives us the opportunity

to grow further in the European e-commerce delivery business for both imports and exports.” DHL Express also will invest C$100 million in a new facility at John C Munro Hamilton International Airport to meet double-digit growth. Replacing the old facility at the airport, it will be over four times the size, covering 18,600 sq m and feature a fully-automated sort system with a capacity of processing 15,000 packages per hour. Andrew Williams, CEO of DHL Express Canada says: “With 24-hour landing capability, dedicated onsite Canada Border Services Agency representation and the ability to grow in the future with a partner positioned to become the cargo hub of Ontario, we know this is the best decision

to continue leading the market.” The Hamilton gateway has two daily flights connecting DHL’s international network via Cincinnati. DHL Express moved to its Hamilton facility in 2008, and has invested C$30 million in the last four years to increase its fleet and aviation capacity, along with expanding facilities in Edmonton, Winnipeg and doubling capacity at Vancouver airport.

Delta and Roadie offer door-to-door service

DELTA Cargo has partnered with Roadie to launch DASH Door-to-Door, offering 24/7 pick-up and deliveries from businesses and homes. DASH Door-to-Door pairs TSA-approved drivers with air cargo to offer cross-country door-to-door services with competitive prices. It is for time-critical shipments in industries including medical, manufacturing, automotive, industrial parts and others. When customers make a booking, they receive a dynamic price quote with a single booking for flights with pick-up/delivery, as well as end-to-

end tracking and real-time status updates. Matt Weisenburg, director – cargo strategy and alliances for Delta says: “The launch of DASH Door-to-Door is a game changer for Delta Cargo, as anyone who needs to get a small parcel somewhere urgently can now have a same-day delivery, door-to-door service in the US, without having to travel to the airport.” Marc Gorlin, founder and CEO of Roadie says: “Roadie was first to market with an ‘on-theway’ delivery service utilising excess capacity in passenger vehicles already on the road. Expanding our model into the belly of a 737 is just the latest step in realising our vision to make sameday delivery faster, more efficient and more sustainable.” The service is for packages weighing less than 45 kg and less than 90 linear inches, and is available to all customers. TSA Known Shipper status is required to ship packages over 16 ounces and a streamlined registration is available directly on deltacargo.com.

WORLDWIDE Flight Services (WFS) has become the first major air cargo company to start swapping plastic products to sustainable alternatives made by M&G Packaging. The BioNatur Plastic manufactured M&G Packaging is a growing line of biodegradable plastic products made with proprietary formulations to make them sustainable. The plastic is made from a blend of resins including LDPE and a plant-based biopolymer, which is biodegradable in a landfill, reducing fossil fuel-based plastic and greenhouse gas. It is stronger and more puncture resistant than polyethylene plastic and uses significantly

less oil-based resin than other plastic products. Mike Simpson, executive vice president for the Americas at WFS says: “WFS uses the equivalent of more than 27 million plastic water bottles a year in protective plastic sheeting and wrap so with this commitment we can make a significant contribution to the environment. We are thrilled to finally have a product that ensures this plastic will not languish in a landfill for decades.” Charles Rick, president of M&G says: “We’re proud to be the supplier chosen by WFS to help further its sustainability programme. It is taking the lead on this initiative to reduce the environmental impact of plastic waste.”

WFS packs sustainability

ACW 4 NOVEMBER 2019

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BRAZIL

AA Cargo maintains a wide network

ven with reductions in capacity, Brazil remains an important market for American Airlines Cargo, managing director of Florida, Caribbean and Latin America Lorena Sandoval (pictured) tells Air Cargo Week. Despite having less capacity than in 2018, AA Cargo is still the largest wide-body operator into Brazil, which Sandoval says provides good options for shipper and freight forwarder customers. The peak season is looking good for perishables, when they traditionally move from Brazil to the USA and beyond. Sandoval says: “A key attribute of the Brazilian market is in the variety of items we carry on our aircraft. We certainly handle a lot of exports of items such as mangoes, papaya and fish and there are also considerable volumes of automotive parts, machinery parts, and leather.”

AA Cargo flies to Sao Paulo’s Guarulhos and Rio de Janeiro’s Galeao airports, which cover 80% of business activity in Brazil. The airline’s extensive trucking network extends its coverage and provides further support to customers. The network is always being evaluated, with new flights being added when needed. Sandoval says: “I am pleased to be able to say that we are adding a seasonal flight from MIA to GRU starting on Oct 25, 2020 which will run right through until April 2021, which will increase our service to 3x daily MIA-GRU-MIA flights.” Serving over 350 cities worldwide gives customers plenty of options. Sandoval says: “For the perishable high season, our European routes are something that many customers are familiar with and have used for years, but our international network has also opened up destinations and cities in Asia which we are finding is

increasingly popular with customers.” How the Brazilian airfreight market will grow depends on what happens to the economy, but official forecasts suggest GDP will increase, meaning more exports. Sandoval says: “With the flexible nature of our fleet, we will be ready and able to provide cargo capacity to meet any new demand.” Having worked in the Latin American logistics market all of her career, Sandoval knows a thing or two about the region. She says despite local bureaucracy, Brazil is a logistics-friendly country. Sandoval says: “It’s just important to be aware of the rules, and work with professionals who can guide you through the processes. Our team on the ground in Brazil has decades of experience in the air cargo sector of Brazil, and are available to help all our customers.”

HAE Group looks for ways to support customers EXPORTS from Brazil have been plummeting and economic indicators are not good, but HAE Group will find ways to support customers and airlines. Alyne Fakuda (pictured), country manager for Brazil says HAE Group offers bespoke solutions for customers in Brazil. It operates four divisions that can operate independently or collectively covering GSSA, solutions, training and cargo handling. She says: “We plan to add more products and carriers in 2020, using our global network. HAE Group has 24 globally, we also plan to import products to take advantage of the growth in that sector.” HAE Group is the GSA for Ethiopian Cargo in Brazil, and has grown 15% in the first part of 2019. Fakuda says: “Ethiopian Cargo opened new destinations and is offering a great network to China, India, Middle East and Argentina with fast and strong connectivity in Addis Ababa.” As a country, exports have been struggling with IATA statistics showing a 58% decline in demand due to weak economic growth, exchange rate volatility and political uncertainty in Argentina. Imports are growing with freighter flights to Sao Paulo Guarulhos. Despite this, Sao Paulo remains a good place for HAE Group’s Brazilian office. Fakuda says: “I have the most dynamic economy in Latin America and it is also the main spotlight in Brazil for important economic activities such as: information technology, financial services, health services, and the creative economy. It has an extremely qualified labour force, high standard universities and vibrant cultural life.” Fakuda says Brazil is an easy country to do business in. She says: “Brazil is a logistics-friendly country considering air logistic once we have many options to connect shipments for all over the world, we have presence from more than fifty airlines operating from all airports. Most of export and import products come to and from South and Southwest where we have good roads to transport the goods.”

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BRAZIL

ECS protects market share in challenging times

espite the market falling at double digit rates, BCS Air has been able to maintain its market share, managing director João Ferreira tells Air Cargo Week. He says both imports and exports have fallen at double-digit rates, with the former affected by political and economic transition, which should resolve itself, and the latter due to the global downturn. Even exports that usually benefit from a weaker currency including fruit and hatching eggs have been affected. Ferreira comments: “Despite the current market conditions, we’ve been able to keep and protect the market of share for our principals. Being on the GSSA market in Brazil, for over 25 years, gave us the ability to learn how to navigate during the downturns.” Being part of ECS Group’s family also helps maintain operations better than the market. Ferreira says: “The strong and well-organised structure of ECS Group combined with a large network plus the technologies and processes developed in-house are truly assets to provide to our principals the best services and the maximised revenues.” The acquisition was viewed as a success by ECS’s side, with CEO Adrien Thominet calling it a “real milestone for the ECS Group development in Latin America”. Saying ECS could not have expected a better integration, Thominet praises the BCS team and the management of both companies working side by side to prepare for the integration. He says: “We are very proud to have such an asset (BCS AIR) in our group and into our network. Indeed, BCS Air represents the future of ECS Group and its expansion in the region, being avant-gardist / pioneer in term of new services for instance.” Customers in Brazil receive all the services developed and provided by ECS Group including GSSA, ground handling supervision, total cargo management and charter brokerage. Professional tools back up these services, with the Apollo business intelligence tool providing real-time data analytics and visualisation. The Pathfinder Track & Trace system has been developed for airlines under a total cargo management system, giving customers

real-time status of their shipments. ECS Group plans to develop services in Brazil through advanced digital solutions and its extensive sales network to help airlines maximise their market share. Total Cargo Management contracts are being offered, providing complete control of all cargo activities by setting up Total Cargo Expertise. Thominet says: “It is run just as professionally as the airlines themselves and integrates every aspect of airlines’ cargo activities. Bringing together cargo experts under one roof – coupled with the many human and material investments that ECS Group has already made both in digital transformation and in producing cutting-edge tools – allows us to provide our customers with a tailor-made offering of customised services covering an airline’s every need.” Brazil is the fifth largest country in the world when measured by landmass and population, with over 208 million people, and is classified as an advanced emerging economy. Ferreira says Brazil is not really a logistics friendly country but the government privatisation programme for airports, seaports, highways and railways is encouraging for the medium term.

He says: “Airports such as Sao Paulo Guarulhos, Rio Galeao and Sao Paulo Viracopos are already on the right direction, not to mention the ones that have been privatised recently, in the Northeast of Brazil, with its privileged geographical location that might turn into hubs between South American and Europe.” Ferreira also admits that due to high taxes and bureaucracy, Brazil is not an easy country to do business in, but there is hope. He says: “With the new ongoing reforms, for the social security, taxes and administration, it shall improve and facilitate for new investors in the country.”

Brazil is a vital link in LATAM’s network AS the largest market in South America, Brazil is of great importance to LATAM Cargo, CEO Andres Bianchi tells Air Cargo Week. He says that LATAM’s network has been designed to feed imports into Brazil from North America and Europe, and outbound capacity has been optimised to feed cargo from other South American markets via Sao Paulo. Bianchi says this makes LATAM less reliant on Brazilian exports and rebalances the network. Sao Paulo is the main destination in South America. Bianchi says: “This is compounded by the fact that a significant amount of cargo going to other places in Brazil is routed by Sao Paulo. Manaus and Rio de Janeiro are next in terms of volumes. Export-wise, while Sao Paulo is relevant, Bogota, Santiago, Quito and Lima are more relevant as origins to the United States.” China is an important partner for the whole of Latin America, but is suffering its slowest economic growth in a quarter of a century. It is hard to know how much of an impact this is having on Brazil, with Bianchi commenting: “China’s slowdown will impact most Latin American economies as they have benefited from its growth in recent years. Internal issues have also played a role on the deceleration of South American economies so it is hard to isolate the impact China is having.” Whatever happens, cargo is part of LATAM Airlines Group’s DNA, with Bianchi saying: “It was integral to the plan the new ownership group had when they bought the company in mid 1990s and has remained so.” The group believes that cargo operations support profitability and resilience of passenger operations. Bianchi says: “The group has committed both human and financial resources to ensure the cargo business has the tools it needs to remain the leader in the South America market.”

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PHARMACEUTICALS

Sonoco ThermoSafe introduces Pegasus ULD

onoco ThermoSafe has created the Pegasus ULD line of passive temperature controlled unit load devices. The Pegasus ULD will be the first passive bulk temperature-controlled container for pharmaceutical use which allows it to speed through existing international ground handling and Customs processes at the lowest possible cost. With increasing demands for life science and healthcare companies to ship in larger quantities, the Pegasus ULD was specifically designed to fulfill a gap in the market for passive bulk packaging solutions, claims the company. Engineered with composite materials, customers will experience integrated real-time data capabilities, including internal and external temperature tracking and robust geolocation. Because risk mitigation decisions are based on accurate and timely data, Pegasus ULD users

ACW 4 NOVEMBER 2019

will be able to count on these capabilities when they need them the most. To create the Pegasus ULD, Sonoco ThermoSafe signed a long-term exclusive development and manufacturing agreement with AEROTUF, a leading supplier of innovative composite ULD containers.

Rental service

Meanwhile, Sonoco ThermoSafe has created the Orion high performance temperature controlled box rental service. This service will feature the new Orion line of temperature controlled packaging, featuring high performance vacuum panel insulation encased in a lightweight, rugged EPP shell for maximum durability and thermal duration. The Orion line will also offer optional on board telemetry, allowing biopharmaceutical

clients access to cloud-based temperature and geolocation data for maximum shipment visibility and quality assurance. Orion’s design, features lightweight Sonoco-molded automotive EPP, is substantially more reusable than existing rental parcels and enables the pharmaceutical supply chain to cost-effectively and sustainably ship small parcels globally. “With the introduction of the Orion high performance temperature controlled parcel rental service, Sonoco ThermoSafe now offers the only one-stop rental service for every temperature controlled container mode and size,” said Christopher Day, director of marketing and innovation for UK-based Sonoco ThermoSafe. “We can easily customise our supply chain to rent high performance temperature controlled packaging as small as a five litre Orion passive unit.”

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UPS upgrades healtcarededicated network

UPS has announced major upgrades to its healthcare-dedicated warehouse and distribution network. This includes adding 130,000 sq m of total distribution space in key US markets. In addition, UPS received European Union’s Good Distribution Practice (GDP) compliance certification for its healthcare operations in France and Germany. Altogether, US healthcare warehouse and distribution space will total 400,000 sq m by 2020. Among the largest upgrades include a new 45,000 sq m facility near the healthcare campus by UPS’s Worldport air hub in Louisville. A new centre in Harrisburg, PA, will measure 31,500 sq m and is strategically located near UPS’s local transportation hub that has the capability of reaching key Northeast markets in one day. To further enhance its healthcare distribution network, UPS recently received EU Good Distribution Practice (GDP) certification for pharmaceutical shipping in France and Germany. The European Union’s stringent healthcare-product distribution guidelines are set by the European Medicines Agency, describing the conditions that a wholesale distributor must meet to ensure the quality and integrity of medicines throughout the supply chain.

PHARMACEUTICALS Shippers and start-ups drive change with new solutions A

ool chain partners are changing their mindsets to join shippers and start-ups shaping the supply chain of the future, delegates at the Cool Chain Association (CCA)’s Pharma and Biosciences Conference heard in September. Updates and information about smart data applications, unmanned aircraft, and supplier management solutions were shared at the two-day event, attended by industry leaders from across the cool supply chain. Pharma manufacturer Novo Nordisk has developed its own risk-based analysis solution using Big Data harvested from temperature loggers on its consignments to map performance and temperature excursions on trade lanes. “We could see that our primary distribution spend was going up and we had to do something about it,” Navid Choudhury, senior manager – distribution and logistics network, supply chain planning, Novo Nordisk said. “We realised there was huge potential by using the data that we already owned. We worked with that data to map the lanes, then we went to our logistics partners and connected our data with theirs so that we could identify performance on future shipments. “We found collaboration easier because we were not trying to ask so much information from the airlines.” Using the system, Novo Nordisk has scaled down costs, improved reliability, and can identify areas for improvement much more easily.

and this must be transferred and shared with the new entrants, if that happens it will be a win-win situation,” she said. Delegates also heard that the air cargo industry could make a difference to final mile delivery saving infant lives. Dr Radhika Batra, founder and president of Every Infant Matters explained the industry was helping by finding and promoting innovative solutions to bridge the gaps in the supply chain, with drones being just one example. “There are 1.5 million children dying every year of vaccine-preventable illnesses and many more living with blindness and other disabilities that don’t need to be,” she said. “The supply chain is only as strong as its weakest link and when

the weakest link fails, it is the weakest who suffer. “Major stakeholders must join together in this war against poverty and disease, if we come together, network, and share, we can surely make a difference.” Stavros Evangelakakis, Cool Chain Association chairman and global product manager, Cargolux said the industry should be thinking about how to help improve the final mile in pharma. “I am not suggesting that the air cargo industry can save all of those lives, but I want to be able to say that we came together and started a dialogue, which can help make things better,” he said. Delegates also learnt about the benefits of Known Consignor certification from Bayer, as well as a 24/7 vaccine monitoring solution implemented in Iceland by Controlant, which has brought excursion rates below 0.5% for domestic shipments and rejection rates close to zero during storage and transportation. All presentations from the event are available to download at coolchain.org The CCA, which hosts two regular events a year, one on pharma and one on perishables, brings together industry leaders from across the cool chain to network, share insight, and trial new ideas.

Unmanned aircraft

Drone start-ups Avy and Dronamics have set their sights on developing unmanned aircraft that will improve the final mile, and offer cost-effective, more environmentally friendly solutions. Ivet Arabadjieva, director of business development, Dronamics, said she felt the pharma and unmanned aircraft industries, which both have research and development at their heart, had a lot to learn from each other. “This is still a work in progress, so the time is now to have a discussion,” she said. “Tell us what you need, and we can come back with ideas and with costs.” Avy founder Patrique Zaman said there were interesting opportunities from a business perspective, but also; “from the impact you can make if you dare to go a bit out of your own area of focus.” “We are working really hard to make sure this new air ecosystem happens, and we have been focusing on tech, regulatory issues, and also use cases, but what we found really hard is to get in touch with the rest of the value chain,” he said. “We need each other if we all want to step out of our bubbles and I invite you all to think today about what we can do and make sure we can help.” Celine Hourcade, founder, Change Horizon and Program Manager, The International Air Cargo Association (TIACA) said that despite not yet being cost-effective or scalable, there was a new emerging industry on its way and it was important to share information and not reinvent the wheel. “The pharma and the air cargo industries have the knowledge

Take CARE

AIR France KLM Martinair Cargo, Swiss WorldCargo and Qatar Airways Cargo were recognised as industry leaders in transport of temperature-sensitive life sciences products by DHL as they were awarded the 2019 Carrier Award for Reliability and Excellence (CARE). The awards recognise “the industry’s top transporters of temperature-sensitive life sciences products”, says the integrator. The winners were presented with an award by Thomas Mack, head of global airfreight, DHL Global Forwarding at the 19th Life Science and Healthcare Conference held in Miami in June. “Transporting life-saving products is an immense responsibility, one with risks that far outweigh those in a typical supply chain environment. We understand the challenges that come with temperature-sensitive products and the imperative need to provide a holistic range of patient-centric solutions to deliver them in a safe and timely manner,” said Larry St Onge, president, global life sciences and healthcare, DHL. Risks in supply chains like inclement weather, geopolitical issues and pandemics are evermore an issue of concern. As carriers strive to provide best-in-class services in the life sciences and healthcare sector, they increasingly invest in improving their pharmaceutical infrastructure, fleet and quality standards.

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ACW 4 NOVEMBER 2019

Why 3 + 2 = a TIACA vision for sustainability By Steven Polmans, TIACA chairman

irst of all, sustainability is not just about being green or about environmental issues. There are broader issues linked to sustainability. This is why we created the TIACA Sustainability Program and chose to include the three main issues surrounding sustainability in the broad sense: 1/ environmental, 2/ social and 3/ business issues. And to solve those issues, we have identified two main ways of responding: through innovation and partnerships. This is our 3+2 vision for the TIACA Sustainability Program: Planet, People, Prosperity + innovation & partnerships. It is very important to mention that this Sustainability Program is in no way a marketing campaign. These sustainability issues are crucial for the future of our industry and the Program’s aim is to support the air cargo industry with its necessary transformation in that regard. It might look good on CSR pages but our aim is to offer concrete solutions for the industry. The TIACA Sustainability Program is at the beginning of its life. It currently includes three components: the annual Award, which recognises the most innovative sustainability projects each year; the Strategic Partnership Program, in which many industry stakeholders are already involved and which also includes participation in the Sustainability Working Group, which aims to set out a shared vision and common goals for the air cargo industry and to provide guidance on sustainability best practices. The next step is to include other components in this Program, such as training, and to settle on an action plan. It will be one of the responsibilities of the Sustainability Working Group to reflect on this – the first Working Group meeting will take place during the Executive Summit in Budapest, 19-21 November. The goal won’t be to duplicate what already exists but to: - identify what already exists that is aligned with our overall vision; - promote existing initiatives/educate the air cargo community about them; - set up actions in which TIACA is a relevant driving force; - encourage innovation that will help to make air cargo more sustainable - the first concrete action is the Sustainability Award, for which the final will take place during the Executive Summit. The Program is still at the beginning of its life, so it is a bit early to talk about helping companies to set out their own sustainability strategies and action plans. But obviously that is the aim! And this will be the result of all the actions that TIACA will put in place as part of the framework of the Sustainability Program. Achieving this goal will require strong communication from our side regarding all the topics you mentioned: tracking progress and sharing best practices, industry achievements and individual successes. On that topic, TIACA has already implemented this approach with the Sustainability Award, which allows us to share inspiring sustainability projects with the whole industry and to give an award to the most relevant of these. You don’t have to have studies to show that there is an important need for action, rather than just words, when it comes to sustainability. In any field, words and good intentions are nothing if there is no action behind them – and taking action is exactly what TIACA is doing. It isn’t just a trendy subject – all stakeholders and institutions around the world and across all fields are increasingly aware of sustainability, and not only the environment aspects. Take, for example, the ICC Business Charter for Sustainable Development, which are contributions from business to the UN Sustainable Development Goals, which are not only focused on climate or the environment. In the air cargo industry, we have noticed the same trend. More and more companies are developing sustainability strategies, hir-

ACW 4 NOVEMBER 2019

ing dedicated people, and allocating budgets. TIACA’s role is to represent the entire industry, so it is also its role to be a thought leader for sustainability, a networking platform, a channel to share best practices, educate the community, call for innovation and partnerships, etc. Ultimately, to take action on sustainability, not just talk about it.

Coming transformation

It is not in the interests of TIACA or the whole airfreight industry that it represents for airfreight to receive bad publicity. But if the Sustainability Program could counter that, it will only be

“Sustainabilty is a major game-changer and we are just getting started.”

a plus, not a goal in itself. As I’ve said before, this isn’t simply an announcement made for effect: it is a reality. We need to adapt to the coming transformation of the world and of the logistics business. TIACA aims to support changes to this industry, and that includes sustainability. The TIACA Sustainability Award is only one component of the Sustainability Program. It is there to celebrate and recognise good initiatives and ideas. We want to show that sometimes small ideas can make a contribution. We want to change mindsets. We want to show that sustainability is much more than just some green ideas. Its aim is not to see the ideas or projects from the awards implemented more widely – but these ideas and projects can contribute to the Sustainability Program we are developing. We currently organise one event per year: the biennial Executive Summit and the biennial Air Cargo Forum. So it is quite easy to organise at least one Sustainability Panel per year and we are totally committed to doing that. But once a year is not enough – our ambition is to go further and to convince other events to organise sessions on sustainability. This topic should be on the agenda of everyone in this industry and discussed at every event. Airfreight is not likely to disappear. But history has shown that companies that do not adapt to a changing reality will suffer or might even disappear. Sustainability is a major game-changer and we are just getting started. It isn’t a question of a fashion that arose a few years ago and will be gone in a few years’ time. It’s about making our industry ready for the future, more efficient and more competitive while keeping in mind the environment in which we operate and live.

Stakeholder collaboration

So far, as Chairman of TIACA, I have not felt any push-back from anybody or any organisation against this as a topic or against TIACA itself. And to be crystal clear, we are not going to implement any stringent regulations. TIACA was created to defend and represent all segments of our industry, not to fight against it. We are working for and together with the industry. TIACA reaches out to anybody in the industry and we’ll continue to act in this way on sustainability in collaboration with all air cargo stakeholders. Would this topic have been on anyone’s radar a decade ago? In the air freight industry, I don’t think so. Even today it is still gaining importance or not really on the radar for many. Many others are taking individual initiatives, but not from a total sustainability point of view. You can do something with a focus on learning, or on diversity, or on the environment, or on something else. But how can you coordinate it and make it one Program? That’s what TIACA aims to do.

Single-use plastics

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If we look at our Program and our ambitions in terms of sustainability, the use of plastic is certainly an important topic. We have also seen that in the entries for the awards. Waste in general is a hot topic, so this will be on the table with the Sustainability Working Group. Our ambition as TIACA is to be global. We have made efforts recently to become even more global and we continue to do so. That should be reflected in our visibility as an organisation and where we are, in terms of our board, our members, and our communication. This global reach will help us in being heard globally. It is also about getting sustainability high on everybody’s agenda. Today, the world is not unified in its vision, so when it comes to sustainability, there are varying levels of maturity. But I strongly believe this is only a matter of time.

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Industry Event

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ACW 4 November 2019

11 24/10/2019 11:47

HE WAS THE DISRUPTION THAT USHERED IN DISRUPTORS

The flying centenarian It has been far from G-EASI Street over the last 100 years of operation

or Instone Air Line, credited with a number of aviation industry firsts, having the legendary ‘City of London’ Vickers Vimy G-EASI in its fleet was a godsend for publicity. That is ironic because early aviation was anything but easy. The origins of the company go back to the formation of Instone Air Line in England in 1919. Instone Airline, originally the ‘Aerial Transport Department’ of S. Instone & Co., was owned by the Instone brothers - Samuel, Theodore, Alfred and Gustave. The airline was set up by the Instone Shipping Line to carry bills of lading in advance of the company’s coal-carrying ships arriving in port to speed up clearance. In doing this, they pre-empted Adrian Dalsey, Larry Hillblom and Robert Lynn, three ambitious businessmen from San Francisco who founded DHL exactly fifty years later in 1969, to do the same.

Loading cargo on Vickers Vimy G-EASI

The company celebrated its centenary in October, 2019 and has a lot to look back on with this anniversary. In 1924, the company unloaded its scheduled passenger services to the nascent Imperial Airways, the forerunner of BOAC and the current British Airways. However, it retained its freight operations. Current managing director Jeremy Instone, great-nephew of founder Samuel Instone, shrugs off any suggestion that the airline could be described in modern terms as a ‘disruptor’. He laughs: “There was nothing to disrupt!”

Industry firsts

It is believed to be the first airline to introduce uniforms for its pilots and staff, and was also the first to transport a racehorse. Instone Airlines agreed a contract with Royal Mail for the transportation of letters and par-

G-BISU awaiting freight load

cels between London, Paris and Brussels, and also opened routes between these cities and Cologne and Prague. By 1924, the company ran a fleet of eight aircraft from the airport at Croydon in South London. An early story concerns a passenger who was taken out to Paris in the very early days (1920) but became stranded as the engine had blown two valves, which took “4 or 5 days to repair”. The passenger was reassured that the company would buy an aircraft with two passenger seats to bring him back.

Up in the air

The brothers first approached the British Civil Aviation Department in June 1919, the same month that saw the signing of the Treaty of Versailles, for an aviation licence. They were beaten on August 25, 1919, when at 09:10 a de Havilland 4A bomber, converted by the British

Bristol car being unloaded

Aircraft Transport and Travel passenger company, took off from London and flew to Paris in two hours. On board was various exotic cargo, including Devonshire cream and mail on the world’s first daily international scheduled flight. However, being true pioneers meant this was not the brothers’ first foray into aviation. In 1910, they had achieved permission to operate an airship in the UK. June, 1919 proved a very busy month for Instone Air Line. One of the first men to fly the Atlantic non-stop that month, John Alcock and Arthur Brown, had an interesting connection to the firm, according to Instone. He said: “Arthur Brown, who was actually called Arthur Whitten Brown, was a consultant with Instone at the time.” Brown died in October 1948. Their flight, in a Vickers Vimy, took about 16 hours to fly the ocean from Newfoundland to Ireland.

After overhaul, DC-6 ready for first flight

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