__MAIN_TEXT__

Page 1

A

I

R

C

A

R

G

O

W

E

E

K

DA ILY NEWS Tuesday edition • 4 June 2019

The official daily newspaper of Air Cargo Europe 2019

To m-Commerce and beyond!

INSIDE MORE 737 MAXS ISSUES Boeing’s grounded 737 MAX is facing further issues after the US-aircraft manufacturer had to inform the Federal Aviation ... PAGE 4

EXCLUSIVE: ACL’s FindMyULD app debut moves airfreight into m-Commerce

W

orldwide provider of ULD, cargo control and air freight products and services ACL Airshop today debuts an industry first at air cargo Europe: a new mobile app, FindMyULD. The app is specifically designed to enhance end-to-end data capture in air cargo transactions. From location and status accuracy to barcoding and Bluetooth scanning and tracking, FindMyULD pulls together all of ACL Airshop’s ULD management services in one seamless tool. By combining its proprietary ULD Control logistics management programs with Bluetooth and barcoding, ACL Airshop has found a game-changing tipping point: the ability to tie ULD serial numbers to tagging device serial numbers, with linkage to the airway bill itself. Wes Tucker, executive vice president of ACL Air-

shop said: “That was our ‘Ah-Ha Moment.’ Suddenly, as we keep rolling out ULD tags and readers in an ever-growing Internet of Things, we can help airlines achieve the speed, service, and accuracy that their shippers and other end-customers expect in the high-speed world of E-Commerce. Or as we now call it, M-Commerce, M for Mobile.” Jos Jacobsen, ACL Airshop’s chief technology officer and managing director Europe and global leasing, said: “Streamlining and accelerating the traditional ULD management experience was our goal. This technology-driven approach lets us advance our leasing model beyond the cumbersome pooling model and offer outright better value through efficiency across our global network for our 200-plus airlines customers. "This tailored and uncomplicated approach lets the airline keep its own assets, not clumped into a giant amorphous pile of ULDs scattered around.

“Our real-time ULD Control reporting capability is augmented with Bluetooth tracking, and our three global Operations Centers serving all time zones from Amsterdam, Hong Kong, and New York form the digital nervous system for our offerings. FindMyULD now even further redefines the meaning of fast, accurate customer service.” For a number of years, ACL Airshop has been investing heavily in new technologies aimed at answering airline clients’ needs for more transparency, speed, and efficiency in handling cargo and ULDs.

need for smart technology to expedite the process of targeting the most suitable aircraft for time-critical cargo. The intelligent platform partners with aircraft operators to put maximum market information at the fingertips of freight-forwarders, delivering complete price transparency. "We are delighted to be launching a new online option for freight-forwarding companies, which provides a faster, more accurate and cost transparent service for their cargo." says Edward Gillett, co-founder of CharterSync.

"Our aim is to improve efficiency in a traditionally over complicated market, reducing time and waste." "The CharterSync team has expertise from across the whole supply chain, from ground handling and operations management, to former brokers and pilots. "This gives us a unique perspective and positions us well to respond quickly to the needs of our customers" commented Simon Watson, co-founder of CharterSync.

NEXGEN LEADERS: THE FUTURE JUST five months after ECS Group launched the #NexGenLeaders challenge to unearth new talent for our industry ... PAGE 6

PLUS ÇA CHANGE ... WITH a solid 45-year portfolio of success in freight and logistics, Steve Walker is a former director of the $10 billion ... PAGE 12

Go-now charter booking platform debuts today

C

harterSync today announced at air cargo Europe the launch of its new online platform, which will make booking time-critical cargo charter flights quicker and easier for freight-forwarding companies. The innovative technology accurately matches cargo loads to the most suitable aircraft in real time, offering significant time savings for go-now charter flights. The CharterSync platform was designed and developed by two airline pilots who identified the

DRONES CHANGING AIRSPACE FOR more than a century, pilots have had direct, on-board control of aircraft. This era is coming to an ... PAGE 18

aircargoweek.com


Tabloid page bled.indd 1

13/05/2019 14:52


ACW DAILY NEWS

Think-a-thon comes to Munich

OFF AT 12.30 ON 4 JUNE AT START.HUB IN HALL B2 WHERE THE SPECIFIC TOPIC WILL BE ANNOUNCED Dr Robert Schönberger, project manager for the transport logistic cluster at Messe München says: “At the transport logistic think-a-thon, students with a well-founded knowledge of logistics meet problems of real-life business. The fair offers a unique opportunity to discuss and develop initial approaches with global experts. We are already very excited about the results.” Professor Hans-Christian Pfohl from the Technical University says: “We were already present in Shanghai with our partner university, Tongji University, and are now very happy to participate again. For the students, this is a first-class opportunity to apply their knowledge in a creative way and at the same time get in direct contact with leading logistics companies.” The think-a-thon will kick off at 12.30 on 4 June at start.hub in Hall B2 where the specific topic will be announced. The six groups of five students will then present their developed ideas from 3.30pm on 6 June at the start.hub, with the best result being awarded a prize.

aircargoweek.com

3

04 June 2019

THE THINK-A-THON WILL KICK

Air Cargo Europe 2019

T

he think-a-thon is making a return at transport logistic in Munich, with more than 30 students devoting themselves to an industry topic, to be announced at the show. The concept was developed a year ago for transport logistic in Shanghai by PR agency Medienbüro am Reichstag, Jettainer and Messe München where students looked at developing blockchain in the supply chain. Supporters of the 2019 think-a-thon include Frankfurt Airport’s operator Fraport, technology and service company Bosch, software developer Dakosy and container specialist DoKaSch. The participating universities are the Augsburg University of Applied Sciences and Darmstadt Technical University, with other international students from the Erasmus programme getting involved.


ACW DAILY NEWS

Lufthansa Cargo launches online retailer service

L

Air Cargo Europe 2019

ufthansa Cargo has founded heyworld to meet the requirements of online retailers, offering them a single source and focusing on the needs of the e-commerce industry. The Frankfurt am Main-based subsidiary will offer its services in the form of a configurable, transparent and reliable transport solutions specifically designed for online retailers, digital marketplaces, online shop operators and forwarders. Stefan Frankenhauser, head of product and service development at Lufthansa Cargo says: “We have clearly identified the new customer requirements and developed an additional transport offering for online retailers.” heyworld will offer convenient access, fast transport times,

04 June 2019

4

a high level of reliability, simple customs clearance, end-to-end shipment tracking and pricing at package level. It will embed Lufthansa Cargo’s airport-to-airport air cargo services into its transport solutions and integrate optional services such as first and last mile transfers and handling add-ons. Peter Gerber, CEO and chairman of the executive board at Lufthansa Cargo says: “By establishing heyworld, we are creating a simple and reliable transport solution for the e-commerce sector.” Timo Schamber, managing director of heyworld adds: “With our dynamic team of experienced logisticians and retail experts, we will be able to create the best transport solutions for cross-border online trade.”

More issues ground 737 MAXs

B

oeing’s grounded 737 MAX is facing further issues after the US-aircraft manufacturer had to inform the Federal Aviation Administration (FAA) about leading edge slat tracks problems. An investigation by Boeing and the FAA Certificate Management Office have found that up to 148 parts manufactured by a Boeing sub-tier supplier are affected. According to the FAA, Boeing has identified 32 737NGs and 33 737MAXs affected in the US, with an additional 133 NGs and 179 MAXs globally. The FAA says the affected parts may be

susceptible to premature failure or cracks, and though complete failure would not result in the loss of the aircraft, it could be damaged. The FAA will issue an Airworthiness Directive to identify and remove the parts from service. Operators of affected aircraft are required to perform this action within 10 days. Kevin McAllister, president and CEO of Boeing Commercial Airplanes says: “We are committed to supporting our customers in every way possible as they identify and replace these potentially non-conforming tracks.”

aircargoweek.com


Tabloid trim.indd 1

16/05/2019 16:17


ACW DAILY NEWS

NexGen Leaders: The future Innovation is at the heart of this challenge. ECS Group looked for the tools, services and communication resources of the future

J

ust five months after ECS Group launched the #NexGenLeaders challenge to unearth new talent for our industry and open up our doors to them, the 10 best projects have just been selected. The final selection stage took place simultaneously worldwide on 13 May – 50 teams, coached by mentors over almost two months, presented their projects live and in person to

ECS Group. This rewarding day was full of amazing moments and discoveries, and finished with the announcement of the 10 selected teams. It is a major victory for the 10 teams, which all won passes to the unmissable Air Cargo Europe trade show, taking place on 4-7 June in Munich – the ideal opportunity to present their projects to the entire industry. See the final results in Thursday's Daily.

Augmented by DCK: Using augmented reality to improve shipment acceptance, handling and pallet build-up

AT the moment, says creator Rutger Smulders, the acceptance process, handling and build-up is mostly done by legacy systems and by hand, resulting in inefficient handling – but since air cargo capacity is mainly volume constrained, optimal pallet build-up is crucial to maintain market share. By using augmented reality to digitalise checks, workflows and instructions, a more efficient process can be achieved through real-time communication.

Air Cargo Europe 2019

Aviationchain: A Bluetooth Low Energy (BLE) mesh network and ULD tracker, proprietary to ECS Group

04 June 2019

6

A BLE ULD tracking mesh network with a web interface for air cargo with access to ECS warehouses to set up scanners and test ULDs. It makes ECS an innovation leader in the air cargo industry and also brings benefits in terms of cost savings and standardisation across the industry.

BCS Leaders: An online tool to connect all company employees worldwide

THE aim is to develop a tool with an easy-to-use interface that can be implemented quickly. The target market are global companies including GSSAs, GHAs, airlines, airport administration, trucking companies and freight forwarders. The focus is on engaging with and listening to employees, bringing ideas and the workforce together, encouraging innovation, interaction and knowledge-sharing.

BTeam - circularplanes.com: an ecosystem for the whole aircraft decommissioning process

DEALS with the whole aircraft decommissioning process along with the resale of materials and recycled and spare parts through a digital platform. The circularplanes.com package addresses the issue of aircraft decommissioning. It offers management of the whole logistics process through strategic partnerships with decommissioners around the world. It also offer the sale of aircraft components through a digital platform, co-run with the decommissioners – and in particular with the storage companies – for all aircraft components that have been disassembled, dismantled, and recycled. The next stage in the project is to improve aircraft eco-design from the outset.

Cargo Assistant: an information tool that is ready to help, wherever you are THIS tool offers you information and assistance and performs a range of tasks, says its creator, Jonatan Jiménez Aceituno. It works on multiple devices, including phones, tablets and Google Home. Created for forwarders and airlines/GSAs it offers clients a unique and exclusive added-value service.

aircargoweek.com


ure is here at ACE Munich

he future to allow it to offer the air freight industry solutions that best meet its needs Cargonow: a platform for comparing, tracking and booking airfreight capacity

THE vision is to become the world's leading platform that maps out the air freight industry ecosystem on the Internet. Cargonow offers added value to every player in the industry. GSAs, airlines and air cargo providers benefit from greater transparency and from progress towards the digital transformation of very manual processes, which currently result in significant inefficiency. The solution eliminates almost all manual processes involved in booking and searching for airfreight capacity.

THE Selfie App will overtake IATA’s market data to become the trusted source on the industry. Up to date market data is essential for cargo airlines to make better commercial decisions and tune their capacity and pricing . The app aims to give much faster access to detailed market analyses and to set new standards for measuring load factors – at a fraction of the cost charged by IATA. The Selfie App will provide weekly detailed analyses of capacity, load factors and tons sold.

ENCOURAGES the airfreight industry to implement a new corporate social responsibility scheme. Airlines are the main initial target. At a later stage, Each % Counts will create partnerships with forwarding agents. Each % Counts will also select the smallest charities based on their desire to help and on their involvement and commitment rather than on their financial strength.

Leg-2.com: total mail management for air cargo

A tailor-made solution that allows airlines or GSAs to partially or totally outsource mail activity. Leg-2.com implements partial or global outsourcing of sales and back office tasks related to the transport of international mail. Standards for mail require direct exchange of data between postal systems and airlines’ central systems but, mostly, do not involve direct local access for a station or GSA user. However, this data is needed by sales and operational teams and this visibility will help them to better interact with customers. Leg-2.com collects information and implements IT tools for market studies, improving sales, capacity planning, quality monitoring and invoicing.

MHTV: a new packaging method for cargo waste management

A NEW packaging method for cargo waste management. The new solution will involve the use of flora foam, which is environmentally friendly and also biodegradable. The use of low-density polyethylene wrappers should be replaced by wooden

aircargoweek.com

7

04 June 2019

Each % Counts: uses empty aircraft space for humanitarian supplies

Adrien Thominet, CEO

Air Cargo Europe 2019

CLIVE - The Selfie App a data service for cargo airlines

crates during transport (this acts as the inventory during transport), and they are also waterproof. Corrugated cardboard boxes must continue to be used.

Through this challenge, ECS Group – the leading GSSA player – wants to help regenerate the industry by giving startups, students and its own employees all over the world the chance to showcase their talent and put it to use to benefit an unbelievably dynamic industry.


ACW DAILY NEWS

Antonov Airlines at 30

Three decades of heavy-we Flexibility and innovation key to Antonov Airlines’ success at meeting changing market demands

Wings Above The Planet

R

Andrii Sovenko £34.99

ecord-breaking Antonov Airlines has turned 30 and celebrates aviation milestones as the company looks forward to future endeavours in the dynamic breakbulk and air cargo market. The airline was founded in 1989 and has since pioneered the air transportation of outsize and heavy cargo across the globe, holding the record for heaviest single piece of cargo transported by air, among others. “As we look back on thirty years of Antonov Airlines, and the projects that we have completed, we see one of our strengths is the flexibility of our business to adapt to changing markets,” said

Christopher Foyle Publishing

Graham Witton, managing director, Antonov Airlines. “We are transporting more outsize cargo than ever before, anything from wind turbine components to city centre trams, and practically anything in between. “We are also moving further into the aerospace industry as digital communications become more integral in the global economy.”

Engineering and technology

Antonov Airlines is the international air transportation division of the world-famous aircraft design bureau, Antonov Company, which provides the engineering and technology behind Antonov

January 1995 Melbourne to Zurich locomotive parts for refurbishment at ABB Switzerland

Ulyanovsk to Novosibirsk Tupolev TU204 prototype fuselage

Air Cargo Europe 2019

Airlines’ fleet. On 11 August 2009, the Antonov Airlines An-225 ‘Mriya’, the world’s largest aircraft, transported a generator with a total payload of 187.6 tonnes from Frankfurt, Germany to Yerevan, Armenia, breaking the record for heaviest single piece of air cargo ever transported. “When the business first started, many items such as satellite containers, generators and transformers were too big or too heavy to fly on conventional freighters,” said Paul Furlonger, director, Antonov Airlines, who has been with the airline since those first days in 1989.

June 1994 London Ontario to Dublin complete new GM Diesel locomotive for Irish Rail. (146 tonnes total load)

04 June 2019

8

aircargoweek.com


weight action “Antonov Airlines, as the first commercial operator of the AN-124100, had to quickly pioneer methods of loading using great creativity and flexibility. “At the beginning, we were doing things for the first time, almost every time, and over the years, after many thousands of flights, our processes have become more refined and our expertise enhanced so that we now undertake ever more challenging and complex projects with absolute confidence,” added Furlonger. Headquartered in Kiev, Ukraine, and a Ukrainian state-owned enterprise, Antonov specialises in the transport of outsized and project cargo worldwide using a fleet of seven AN-124-100 Ruslan aircraft with up to 150 tonnes payload, its 60-tonne payload AN-22, and its unique 250-tonne payload AN-225 Mriya, the largest aircraft in the world. It also uses a number of smaller AN-74 and AN-26 aircraft.

Wings Above The Planet Andrii Sovenko £34.99 Christopher Foyle Publishing

T

his is a hefty book: mind you, it’s a hefty subject. If there is one name that epitomises heavy lift airfreight, then Antonov is that name. Ukrainian aviation journalist Andrii Sovenko has used his more than 25-year career in aviation media to write this 304-page full colour book outlining the company’s history from the late-1960’s USSR to the present-day free market environment of independent Ukraine. Along the way, one name, Christopher Foyle, was so important to the success of the Antonov brand and profile in the West. This lavishly illustrated book is full of facts, names, dates and Antonov aircraft types with much information being trawled from the archives of Aviation and Time, the magazine that employed Sovenko for a quarter of a century. The book has immediate appeal to those who love aircraft, especially cargo aircraft. While the title’s layout design is a trifle pedestrian, the content and choice of photos more than makes up for that. Black & White photos from the 1960s and 1970s are followed by full colour from the 1980s onwards to the present day. This is a neat metaphor for how Antonov went from the end of the centrally controlled Communist atmosphere of the USSR to the 1980s commercial freedoms at the end of the USSR and its ultimate disintegration.

aircargoweek.com

9

04 June 2019

A big book about a big airline

Air Cargo Europe 2019

January 1997 Mecheria to Luton Virgin Round the World Hot Air Balloon recovery following Richard Branson’s failed attempt


ACW DAILY NEWS

Turkish Cargo starts to operate at new Istanbul Airport

Air Cargo Europe 2019

T 04 June 2019

10

urkish Cargo, the global air cargo brand, has moved its cargo transportation operations via passenger flights to the new Istanbul Airport. Operations performed by freighter flights will continue to be performed from the existing cargo terminal at Ataturk Airport until construction of the Mega Cargo Facility is completed at Istanbul Airport. Getting ready to maintain its operations from Ataturk and Istanbul airports as "Dual Hub", Turkish Cargo will have a capacity to handle four million tonnes of cargo annually in its modern cargo terminal that will have an indoor area of 300,000 sq m when all phases of Istanbul Airport have been completed. Continuing its growth during 2019, Turkish Cargo managed to rise to the seventh spot in the WACD (World Air Cargo Data) with 9.6% increase in its tonnage despite the 5.8% shrinkage in the air cargo market along with 5.7% fall in demand according to IATA (International Air Transport Association) reports during January and February. The successful air cargo brand increased its market share in the sold tonnage by 0.6 points in the first two months of the year compared to last year and reached a growth of 4.3% while increasing its cumulative market share by 0.4 points to 4.1% and achieved a sustainable growth. On this performance, Turkish Airlines chairman of the board and the executive committee, İlker Aycı stated the following; “We are happy about the continuous rise of Turkish Cargo in the global air cargo market. We can’t say that the success we achieved during the first two months of 2019 was a surprise. "We continuously experience these exciting achievements especially in recent years. For instance, in the last two years, we rose from 12th place to seventh place after surpassing five big global air cargo brands from Europe and the Far East.”

IN THE LAST TWO YEARS, WE ROSE FROM 12TH PLACE TO SEVENTH PLACE

aircargoweek.com


Tabloid page bled.indd 1

16/05/2019 11:29


ACW DAILY NEWS

Plus ça change, plus c’est la même chose 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 and speaks with Air Cargo Week about how some of the newest things in airfreight are not all that new.

Air Cargo Europe 2019

1. Some 46 years in freight forwarding is

a remarkable achievement. Looking back what are the stand-out changes? I’ve seen numerous changes during my four plus decades in freight forwarding, but paradoxically, while many elements of forwarding have been totally transformed - most significantly since the advent of computerisation - it is astonishing how many processes remain relatively unchanged. The physical movement of freight is slicker, and while automation is appearing in areas, the fundamental process is unchanged.

The most laudable change across the whole sector is the way that the customer - the shipper

- has become the focus of the business and solutions/services adapted to serve them better. In the old days, the shipper adapted to the service offered by the forwarder.

2

. If you had to list 5 major innovations that have changed the face of trade, which would you choose? There are five particularly stand out innovations that have transformed freight and international trade. a) The answer to the chicken and egg paradox is containerisation. Because without Malcolm McClean’s intermodal steel box invention, globalisation would never have happened.

The shipping container might seem an unlikely candidate for the most influential invention of the 20th century, but by slashing the cost of deep sea shipping, and massively speeding up the whole process, it has arguably had a bigger impact than the aeroplane or the microchip.

b) The globalisation of trade is not a modern phenomena, and the creation of bodies like the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO), for which GATT is the foundation

have contributed massively to the modern surge in globalisation, but there is no denying that the massive fall in transportation costs driven by

04 June 2019

12

aircargoweek.com


containerisation has been the primary driver.

c) Economic reforms in China in the early 1980’s paved the way for the start of many well-established NVOCC operations and catapulted forwarding volumes, as the world’s factory opened for business, paving the way for the eventual WTO accession in 2001. d) At the same time as the world opened for business, computerisation arrived and offered hard-pressed forwarders with a replacement for the Banda machine and telex. Though today’s system are a far cry from the old IBM AS/400’s e) And now we have the digitalisation of forwarding. Though we don’t really, as it started in the 70’s.

3

. Digital forwarders are promising increased visibility and control, transparent shipping costs and more. Are they over-promising, or is their tech that good? The technology to provide visibility and control over shipments, transparent shipping costs, more predictable and reliable transit times has been around for years. In fact these features were built into the software solution my team developed at SBS Worldwide, and which is now deployed by DSV.

Freight platforms, like Freightos, have evened the field. But only partially. No independent freight platform covers more than a fraction of the market by route or mode.

4

. Should traditional freight forwarders be worried about the pace of change? Forwarders are good at adopting technology, but with three caveats. Cost is always an issue, and for many forwarders, a critical weakness that blinds them to the opportunities that will follow

WILL ALWAYS BE CORE FOR FORWARDERS

investment. When forwarders do invest the focus is almost always internal or process driven, when it absolutely should be pointed outward and focused on the customers. The biggest Achilles' heel for many forwarders is that, when it comes to innovation, they are laggards and follow the herd. This time the herd may be culled.

5. Is this the end of the road for ‘traditional’ freight forward-

ers, who rely on relationship and client focus? Relationships and client focus will always be core for forwarders and some niche operators will continue successfully below the digital radar, but the industry is changing and those that don’t swiftly embrace digital and change their business models to take account of developments like digitalisation and 4PL will not survive.

6. Is the the collective noun of disruptor for new technology aircargoweek.com

The simple fact is that there is no single technology, or group of technologies, that are replacing forwarders, though the myriad of rate platforms may well disrupt relationships between shippers and incumbent forwarders.

Enabling technology is far more interesting because it’s a rapid way to drive radical change, increasing the performance and capability of forwarders. The most topical example is the 4PL platforms that forwarders can integrate with their transport management system (TMS) to create new digital products and recurring revenues.

THE PRESS LIKE THE DISRUPTOR HANDLE, BECAUSE IT MAKES GOOD HEADLINES

13

04 June 2019

RELATIONSHIPS

In reality the disruption has largely been the result of over-active PR agencies, taunting an aggrieved forwarding audience, that have been labelled as ‘dinosaurs’.

Air Cargo Europe 2019

Forwarders have been providing ‘open-book’ services for years, but such transparency has not been available to smaller shippers, who have relied on benchmarking to keep track of the market.

and technological innovations justified? The press like the disruptor handle, because it makes good headlines.


ACW DAILY NEWS

Munich tops European airports in CDP climate protection rankings

Air Cargo Europe 2019

Successful reduction in CO2 emissions

04 June 2019

14

M

unich Airport has been recognised for its effective climate change efforts by the Carbon Disclosure Project (CDP), an international organisation that supports companies and cities with the disclosure of environmental data. The CDP awards ratings to companies demonstrating strong performance in reducing CO2 emissions, thus helping to limit the rise in global temperatures. In the latest CDP annual report, Munich Airport maintained its strong position in the rankings with a rating of A-. With this result, it led the field of participating European airports. As the first airport in the world to make the switch to energy-saving LED lighting for its ramp areas, Munich Airport has saved more than 1,000 tonnes per year in the illumination of ramps and roads and a further 3,600 tonnes in buildings. The airport is also making a rapid transition to electric vehicles in its ground fleet. So far 121 diesel or gasoline-powered vehicles have been replaced. In addition, there is access to 85 charging stations for electric cars, with another 200 scheduled for installation in stages. "The high rating from the CDP is further proof that we are on the right track with our efforts to reduce emissions," said Dr Michael Kerkloh, the CEO and president of Munich Airport. Dr. Kerkloh added: "By 2030 we plan to be the first airport in Germany to achieve carbon-neutral operations. To implement this ambitious climate protection program, we are investing a total of 150 million euros."

Dr Michael Kerkloh

WE ARE ON THE RIGHT TRACK WITH OUR EFFORTS TO REDUCE EMISSIONS

aircargoweek.com


Tabloid page bled.indd 1

15/05/2019 10:16


ACW DAILY NEWS

NEW TECHNOLOGIES MUCH of what was sci-fi just a generation ago is now the new normal. In the first of ACW's monthly series, we looked at trends in New Technology in airfreight and the supply chain.

Air Cargo Europe 2019

T 04 June 2019

16

he speed of development of technology available to airfreight managers and executives may feel like it is accelerating, because it actually is. At the turn of the century, smartphones in their modern form did not exist.

Now, the supply chain can be can be run from the latest Apple product in your palm. In his book, The Singularity Is Near, Ray Kurzweil wrote: “The first computers were designed on paper and assembled by hand. Today, they are designed on computer workstations with

The rate of technological development in airfreight is acceler

Standing still is no long the computers themselves working out many details of the next generation’s design, and are then produced in fully automated factories with only limited human intervention.� The quotation neatly reflects not only the advance of machines but at the same time the removal of labour. In this it also reflects much of what is going on in airfreight. The only goal of technological innovation in the supply chain is to make tasks less costly and more efficient. This is particularly the case in the logistics field, where capacity is short and skilled labour is in short supply as demographic pressures reduce the pool of labour. At the same time, customer demands for more rapid and stricter delivery timeframes are more stringent than ever before.

Big Data

The coming years will see a major trend in the collection and use of Big Data in airfreight. Most airfreight is commodity traffic. This is attractive to planners and software packages that can work on algorithms to produce the faster route or the keenest rate for the shipment. This is going to lead in the next few years to a growth of the presence of AI (artificial intelligence) and predictive software in airfreight. Along with this, the Internet of Things (IoT) will connect much technology in the supply chain in ways that have not yet been devised. A third trend that can be said to be based on the first airside trial of a self-driving vehicle at a UK airport Big Data is the rise and rise of Blockchain. The potential to exploit AI to improve decision-making, transform business models and networks, and modify the customer experience will drive the payoff for digital enterprises. While using artificial intelligence appropriately will likely result in a great digital business payback with attractive ROI, the promise of general AI to perform any intellectual duty that a human can do, and vigorously absorb and comprehend as much as humans, remains uncertain. At the same time, blockchain is a public, dispersed, and decentralised archive that eliminates business friction by being autonomous of individual applications or contributors. The technology contains the promise to transform the supply chain. An applied approach to blockchain requires a clear understanding of the business opportunity, the drawbacks, its archi-

tecture, and a solid implementation strategy.

Warehousing technology

Forklifts have been a vital component to airfreight sheds for decades. Now a shift is being observed to programmable autonomous machines. This is being driven by the goal of improved efficiency. Robotics and autonomous machinery in the supply chain can now condense delivery times to just a 24 to 48-hour period. Autonomous forklifts and robots can pick products much sooner than humans, which means companies do not have to employ human forklift operators. The combination of lower costs and a speedier assembly is a dream come true for any business owner. Meanwhile, the growth of new technologies and the IoT will prompt logistics service providers and shippers to increase adoption of mobile apps. These apps exist for inventory management, barcode scanning, fleet management, shipment tracking, order management, customer service and more. Logistics businesses

THE SUPPLY CHAIN CAN BE RUN FROM THE LATEST APPLE PRODUCT can pull information and capabilities via an app to manage capacity and satisfy demand. Freight held in March sharing apps are one of the prime app groupings that will see a significant boost through 2019.

Ice, ice baby

A decade ago, temperature-sensitive and perishable cargo was treated as general cargo. Now it has become a multi-billion dollar niche. This is why the expected rise in demand for temperature-sensitive products is a key technological

aircargoweek.com


new trends

s accelerating. Are you keeping up?

onger an option

Autonomous vehicles

Coming to an apron near you: the first airside trial of a self-driving vehicle at a UK airport held in March 2018

aircargoweek.com

Start-ups show off new kit at Hangar 51

on 14 December 2018 at the performing arts centre in the Barbican Estate of the City of London, attended by representatives from across IAG’s business sectors. IAG Cargo backed two companies, data

visualisation software company Emu Analytics and voice communications provider Mobilus Labs. Once the companies had made their presentations, British Airways CEO Alex Cruz took to

the stage to congratulate them for their hard work. He said: “What an incredible session, the quality of work, I really mean it, it’s outstanding, really high quality, I’m jealous."

17

04 June 2019

Autonomous vehicles are becoming increasingly popular with products, such as Google’s driverless car, which rode around 1.6 to 2.2 million miles in October 2016. It is estimated that companies are expecting the commercialisation of autonomous cars by around 2019 to 2022. The popularity of autonomous vehicles has also been noted in the air cargo handling sector, into the logistics sector. In March 2018 IAG Cargo undertook the first airside trial of a self-driving vehicle at a UK airport to understand how they could be used in an airside environment. The CargoPod vehicle was designed by Oxbotica – an Oxford based company specialising in self-driving software, and it spent three and a half weeks running autonomously along a cargo route around the airside perimeter. The trial collected over 200 kms of data that will enable IAG and Heathrow Airport to assess potential opportunities for the use of autonomous vehicles in airport environments.

I

Air Cargo Europe 2019

trend in the global air cargo market. Transporting and handling temperature-sensitive products gives rise to both challenges and opportunities for all cold chain industry participants. Businesses, such as pharmaceutical companies, depend on air transport for its speed in delivering high-value, time-sensitive, and temperature-controlled products. “The International Air Transport Association took a step to support the air transport industry to comply with the pharmaceutical manufacturers’ requirements,” says Shakti Jhakar, a lead analyst at Technavio for research on logistics. There is a rise in the digitisation of systems in all the industries across the world. Similarly, a digital process will increase the air cargo value proposition by starting innovative services and solutions. The Air Waybill is one of the most important air cargo documents, and its conversion to an e-AWB is the first step toward digitisation. To fast-track the global acceptance of the e-AWB, IATA developed e-AWB360. The e-AWB360 program is planned around an airport community approach to e-AWB implementation. “The e-AWB desktop tool was launched to help small and medium air freight forwarders to create, send, and manage e-AWBs easily and efficiently. "Challenges such as perceived complexity and a lack of harmonization in e-AWB procedures between stakeholders, must also be mitigated,” adds Shakti.

n late December, Iternational Airlines Group (IAG) invited new companies to the Barbican Centre in London to show off how their innovations can help improve operations. The Hangar 51 Demo Day was held


ACW DAILY NEWS

NEW TECHNOLOGIES FOR more than a century, pilots have had direct, on-board control of aircraft. This era is coming to an end.

By Bill Goodwin

N the past five years, the drone industry has seen impressive growth around the globe. Both the public and private sectors have leveraged unmanned aerial vehicles (UAV) in countless ways, whether to improve public safety surveillance in law enforcement, inspect power lines by utility companies, and even save lives in disaster recovery efforts.

In Rwanda, thanks to Zipline, drones perform more than 50% of blood delivery. NASA, the National Oceanic and Atmospheric Administration (NOAA), and Northrop Grumman are looking at how they can track storms and hurricanes with drones in the near future. Other industries are also starting to use drones to improve

operational processes, including supply chain deliveries, construction, mining, public safety and industrial. At the end of 2018, experts suggested that there were around 10 million drones in use across the world, a 250% increase since 2016. This exponential growth is testing the ability of traditional air traffic management systems to safely integrate drones into the airspace. The challenges of safe integration only multiply as drones perform complex operations, beyond visual line-of-sight or fly-

Air Cargo Europe 2019

I

How drones will change th

04 June 2019

18 ing over people. Autonomous drones, flying beyond the horizon or in urban environments, will need a dynamic link to airspace authorities and other aircraft, manned and unmanned. In order to ensure safe drone operations, drone operators and airspace controllers will also need to implement new systems to evaluate and mitigate potential risks on the ground and in the sky to operate complex missions. Civil aviation authorities (CAAs), air navigation service providers (ANSPs), and local authorities around the world are working to enable safe and secure access to low-altitude airspace for drones. In 2018, countries all over the world launched projects to help further improve their airspace infrastructure management. Switzerland, the Czech Republic, Japan, the US, and others have launched projects to improve safety and connectivity for beyond visual line-of-sight (BVLOS) operations. This was made possible through close work with regulators in mitigating the risks of advanced operations and safely integrating drones into the airspace through rulemaking, standards develop-

Airports chiefs vocal about drones

A

t its annual New Year Reception in the European Parliament in late January, Dr Michael Kerkloh, president of ACI EUROPE and CEO of Munich Airport spoke about recent drone disruptions and the need for alignment in the European Commission’s approach to airport capacity, investment and user charges. In the spotlight is the illegal use of drones, which disrupted operations at London’s Gatwick and Heathrow just before Christmas. The airport industry is mindful of the many new opportunities that drone technology provides - from runway inspection to navigation equipment calibration and surveillance. Safety regulation around such use is progressing well with EASA and the European Commission – with the full support of Europe’s airports.

aircargoweek.com


drones

e the world’s airspace ment, and risk modeling with authorities from around the world. Countries have struggled in recent years to assign responsibility for both making and enforcing rules related to drone operations. What emerged as a concept in 2018 will become a mainstream trend in 2019: that collaboration across the levels of government is essential for a healthy drone ecosystem to emerge and grow at the pace of what is technologically possible. Truly high-volume drone operations can only happen when local authorities are involved as partners, because they are clos-

services will be key enablers for greater and more complex commercial operations.

Bill Goodwin is General Counsel at drone data provider, AirMap

Air Cargo Europe 2019 19

JD.com profits from Jakarta’s green light for drones

I

n a move with many potential and far-reaching precedents Chinese company JD.com has completed Indonesia’s first government approved drone flight. Billing it as a breakthrough for drone deliveries JD.com hopes the pilot flight will lead to widespread drone use in Indonesia firstly and then more broadly across the South East Asian region. The test flight saw the drone fly the short distance from Jagabita village, Parung Panjang to MIS Nurul Falah Leles Elementary School to deliver backpacks and books to students, part of a donation from the e-commerce company. Within Indonesia, an archipelago nation of some 17,000 islands spread over three time zones, drones are a way for companies like JD.com to offer more and better services besides philanthropy. The company noted drones will help JD.com reach its goal of being able to deliver 85% of orders same- or next-day. “We look forward to working to realise the full potential of this technology, and provide more convenience to Indonesian citizens.” said Jon Liao, chief strategy officer at JD.com. The precedent for Indonesia lies not so much in what has been allowed for the first time but the potential role it offers.

aircargoweek.com

04 June 2019

est to the complexity of low-altitude airspace, making them essential partners for safe drone integration. Developments in technology, particularly UTM, will facilitate an unprecedented level of coordination between different levels of government to open more low-altitude airspace for drones. By necessity, local law enforcement will increasingly engage in enforcing the rules around flying drones, just as local governments are always the first to hear community concerns relating to privacy, safety, and community impact. By providing controlled access to information regarding the identity of operators, as well the needs and concerns of the communities where drones are operating, UTM infrastructures and


ACW DAILY NEWS

What’s in store in 2019 for airfreight?

Air Cargo Europe 2019

We asked two senior excutives at UK-based Air Logistics Group to gaze into their crystal balls and give us their predictions for what lies ahead this year for airfreight. Stephen Dawkins, CEO, ALG looked at Market Trends while Chris O’Donnell, managing director UK, ALG took on the thorny issue of Brexit.

04 June 2019

20

Market Trends

T

his year will be another challenging but very exciting year for the air cargo industry. There are a number of factors on the short/medium-term horizon such as economic tension, trade wars, inflation, the upward trend of the fuel price, Brexit and currency volatility that are quite unpredictable, but they will for sure bring opportunities for our industry. Now more than ever, airlines see outsourcing of cargo as a sensible option in terms of cost saving and incremental revenue – they are looking for partners that are reputable, financially sound

and can deliver in terms of revenue, network coverage and investment in business intelligence. GSSAs have naturally become outsourcing companies of choice for airlines, offering significant value-added services such as data capture, business intelligence, trucking management, accounting, administration and digitalisation services. Demand for these services will continue as the market softens in the short term and airlines look to control their costs, maximise revenue and focus on their core revenue which is the passenger business. Air Logistics Group is ideally placed to offer all of these services. For Air Logistics Group, after two very strong years, we anticipate steady growth for 2019 by continuing to expand our network, consolidating our position as the market leader and investing in our employees and business intelligence to become a predictor. We must continue to maintain the highest service levels for our forwarding and airline clients, while focusing on digitalisation and expanding our vertical product offerings to airlines, primarily in training, compliance, business intelligence and back office functions.

Stephen Dawkins, CEO

Brexit

A

s the Brexit saga continues to go on, Air Logistics continues to remain focussed on its core business of service, no matter the political climate! The market in the UK has softened significantly since the end of 2018, as business adopt a ‘wait and see culture’ and although some of this could be attributed to the uncertainty and prolonging of Brexit, this is also part of the natural economic cycle that is happening across the world. Brexit hype reminds me of the Year 2000, when everyone was wondering if the computers would switch back to zero. Business is much strong than politics and it always finds a path to continue to operate and grow for the needs of the ever expanding number of people that we have on the globe. Brexit is a bump in the road that brings opportunity for the cargo airline industry. During this uncertain period we continue to work with our airline partners to provide the highest service levels for our Forwarding clients, focusing on digitalization and simplifying the booking process.

Chris O’Donnell, managing director UK

aircargoweek.com


Skycell offers product loss insurance on all its shipments SkyCell is the 4th largest pharma airfreight container provider

S

With the award-winning and quality audited performance of its temperature-controlled pharma containers, SkyCell is constantly pushing for innovation and better services for its clients. For every shipment, SkyCell experts use the SkyCell Transport Planner’s risk assessment together with the shipper, freight forwarder and airlines, producing a comprehensive lane risk analysis even for shipments to remote destinations. “Our SkyCell Transport Planner helps us to identify the risks, mitigate them and insure them. With our new insurance offering, we want our clients not to have the slightest doubt about the safe transport of their valuable cargo anymore. This is an absolute novelty in our business,” said Marrie Groeneveld, chief commercial officer at SkyCell. SkyCell’s outstanding quality has been recently verified by one of the Big Four international audit companies. In their study, the auditors scrutinised and audited all SkyCell

Groeneveld: This is an absolute novelty in our business

aircargoweek.com

21

04 June 2019

Audited performance

shipment results of the last 12 months. According to the results of the study, temperature excursions happened only during 0.1% of the transports with a SkyCell container.

Air Cargo Europe 2019

kyCell is introducing a comprehensive insurance against product loss called “Peace of Mind Insurance”. In order to eliminate the risk of product loss for its clients, the Swiss-based manufacturer of the world’s safest temperature-controlled containers for pharmaceuticals is providing a hassle-free insurance add-on with coverage of up to $4 million per container. Underwritten by a multinational commercial insurance company, SkyCell is the only provider of pharma containers to offer such a defacto temperature performance guarantee for the transport of temperature-sensitive pharmaceuticals. Common practice today is that all players in the pharma supply chain - freight forwarders, airlines and packaging companies exclude any financial responsibility in case of temperature excursion. This leaves all the risk with the pharma manufacturer. SkyCell’s new “Peace of Mind Insurance” add-on closes this gap. “We want to give all our clients a peace of mind when shipping their sensitive pharmaceuticals and to stop worrying about temperature excursions. On top of providing them with the safest pharma containers in the market, our “Peace of Mind Insurance” systematically eliminates the financial impact of product loss,” said Richard Ettl, CEO of SkyCell. Its audited track record enables SkyCell to get coverage of up to four million product value per container.


ACW DAILY NEWS

Airway Billy Jo's airfreight in numbers

7

30

121

AN-124-100 Ruslan aircraft with up to 150 tonnes payload operated by Antonov Airlines

years since the founding of Antonov Airlines

diesel or gasoline-powered vehicles replaced at Munich airport by electric vehicles

percentage rise in cargo moved by Turkish Cargo

percent of blood deliveries in Rwanda are delivered by drone, thanks to Zipline

kms of data that will enable IAG and Heathrow Airport to assess potential opportunities after the CargoPod trials

9.6

50

200

Old News Air Cargo Europe 2019

A struggle for Nashville

04 June 2019

22

2 June 2008

T

imes have been rough for Tennessee's Nashville InterNational airport, explains Tommy Lee Jones, director of bsuiness development at the gateway. Most notably, the loss of bankrupt all-cargo carrier Kitty Hawk has had a big impact on the Tennessee gateway. Nonetheless, Jones said Nashville has still seen more freight so far in this financial year than the equivalent period of the previous year. For the fiscal year-to-date, the airport has handled 65,316 tonnes of cargo, up 5.3% year-on-year, he adds. Moreover, Nashville is loking to the future. With the loss of Kitty Hawk there is more space to handle new carriers, Jones said, and the authority is also renovating many of the airport's cargo facilities.

A

I

R

C

A

R

G

O

W

E

E

K

DAILY NEWS

Published in Munich 4, 5 and 6 June 2019 James Graham

EDITOR: DEPUTY EDITOR:

James Muir

DIRECTOR OF OPERATIONS:

Kim Smith

COMMERCIAL DIRECTOR:

Jason Vencatasen

INTERNATIONAL SALES DIRECTOR:

Rosa Bellanca

DEVELOPMENT DIRECTOR:

Michael Sales

DESIGN AND PRODUCTION MANAGER:

Alex Brown

DATA AND ACCOUNTS:

Sarah Archer

DIRECTORS:

Norman Bamford • William Carr • Dawn Jolley

PUBLISHED BY

AZURA I N T E R N AT I O N A L

T +44 (0)1737 645777 • F +44 (0)1737 645888 E sales@azurainternational.com www.azurainternational.com

The views and opinions expressed in this publication are not necessarily those of the publishers. Whilst every care is taken, the publishers cannot be held legally responsible for any errors in articles or advertisements. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by electronic, mechanical, photographic or other means without the prior consent of the publishers. USA: The publishers shall not be liable for losses, claims, damages or expenses arising out of or attributed to the contents of ACW Daily News, insofar as they are based on information, presentations, reports or data that have been publicly disseminated, furnished or otherwise communicated to ACW Daily News.

Printed in Munich by Peschke Druckerei GmbH

aircargoweek.com


Tabloid page bled.indd 1

13/05/2019 16:05


Tabloid page trim.indd 1

29/05/2019 15:09

Profile for Azura International

ACW Daily News 4th June 19  

ACW Daily News 4th June 19