Space Age Conversions Market Snapshot
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www.airlogisticsinternational.com February 2021 DISTRIBUTION 09 Moving the vaccine PAYMENT OPTIONS 22 Online monetary solutions CARGO SECURITY 31 Are vaccines a prime target? FEBRUARY 2021 • AIR LOGISTICS INTERNATIONAL LOGISTICS AIR • 2021 FEBRUARY END OF YEAR SURVEY 36 Will 2020 be the year to forget? Space age Conversions market snapshot Connecting the air cargo community TSA MEET ECAC QUALIFIED PERFORMANCE STANDARD ® EMIS series EMIS 130200 FOR PALLETIZED CARGO AUTOMATIC SCREENING FOR NON-METALLIC CARGO INSPECTION OF PACKAGES AND PALLETS OF EMIS 8075 FOR PACKAGE INSPECTION Perishable goods and flowers Paper products Textiles and Clothing Plastic and wooden products AUTOMATIC DETECTION LOW COST NO DEDICATED & HIGH THROUGHPUT OF OWNERSHIP OPERATOR T +39 0575 4181 E [email protected] W www.ceia.net/security/emis ISSUE 1 / VOLUME 4 FEBRUARY 2021 CONTENTS 12 16 31 MANAGING EDITOR Alwyn Brice tel: +44 1322 221144 e-mail: [email protected] DEPUTY EDITOR Felicity Stredder tel: +44 1322 221144 e-mail: [email protected] DESIGNER Heather Woodley tel: +44 1322 221144 e-mail: [email protected] 36 PRODUCTION Nicki McKenna tel: +44 1322 221144 e-mail: [email protected] COMMMERCIAL MANAGER Anthony Smith tel: +44 1322 221144 e-mail: [email protected] PUBLISHER Marc Young tel: +44 1322 221144 e-mail: [email protected] CONTRIBUTORS Stanley Chao, Thorsten Neumann, Holly Stewart and Lionel van der Walt Air Logistics International is published in February, April, June, August, October & 5 Editor’s welcome 22 Payment options December. Subscription rate per year applies to UK and overseas: Trade sanctions really have no Forget cash - online payments are Qualifying subscription: £64 or ¤92 or US$100 place in a world wrestling with a being increasingly adopted, says Non-industry subscription: £170 or ¤240 or US$250 pandemic, reckons the Editor PayCargo’s Lionel van der Walt 6 Logistics update 24 Chinese economy Qatar Cargo pulls out the stops; Stanley Chao on the emergence of Dutch backtrack on levy; digital China from the ashes progress at Dallas Fort Worth 28 Conversions update www.markallengroup.com 9 Distribution The Editor with a round-up of news The sector agrees that rolling out from this specialist sector Published by MA Business the COVID vaccine will be a major a Mark Allen Group Company Hawley Mill, undertaking. The Editor considers 31 Cargo security Hawley Road, Dartford, a new report on the topic TAPA’s Thorsten Neumann Kent DA2 7TJ. Tel: 01322 221144 provides an update on criminal CHIEF OPERATING OFFICER MARK ALLEN GROUP 12 World analysis activity in the COVID vaccine Jon Benson tel: +44 1322 221144 Alwyn Brice reviews the Middle supply chain e-mail: [email protected] East over the last 12 months © 2021. All rights reserved. No part of Air Logistics International 34 E-commerce forecast may be reproduced or transmitted in any form, by any means, electronic or mechanical, including photocopying, 16 Industry interview Predictions from the integrators on recording or any information storage or retrieval system, without permission in writing from the Publisher. Felicity Stredder talks to Delta how 2021 will shape up The views expressed do not necessarily represent those of the editor or the Air Logistics International. Advertisements in the Cargo’s Rob Walpole about his new journal do not imply endorsement of the products or services role and the carrier’s strategies 36 End of year survey advertised. Front cover courtesy of Precision Conversions The Editor examines a recent Print - ISSN 2633-2450 21 Integrator focus XOP Logistics study on retailers, Online - ISSN 2633-2469 Holly Stewart charts the progress consumers and third party Printed by Pensord Press Ltd, NP122YA of the big names during 2020 providers in the US and the UK www.airlogisticsinternational.com February 2021 3 EDITOR’S WELCOME What goes around… ave you ever noticed how life is full of little ironies? Here we are, paused at the biggest crossroads that the world has Hever faced. Forget living memory – what’s happening at the moment in terms of the pandemic is unprecedented. Full stop. Bit by bit the world has built up a comprehensive communications and travel network that has now contributed to the greatest bacterial threat that mankind has ever faced. Yes, the Black Death, smallpox, the Bubonic Plague and others decimated millions between them, but their sphere of operation was limited. The aviation sector, in a sense, is reaping what it has sowed. Move on to the spat between the US and China that has occupied the headlines through most of 2020. Tariffs and snubbing the Far Eastern manufacturing hub were designed as protectionist measures and, allegedly, were a means of curtailing the latter’s prominence on the world stage. And yes, the levies were not welcome – but fast forward to December 2020, and what does one find? American demand for Chinese goods that was seemingly boundless. In fact, Chinese exports to the US in November last were up by over 46%. MISSION Trade war? What trade war? STATEMENT The loser in this scenario has been the cargo sector, which has been inundated with demand which it has struggled to fulfil. Why? Because there ALI comes from the same team responsible has been less capacity, something that has been occasioned by the pandemic for the well-established stalling passenger flights. titles of Ground Handling It’s a vicious circle. International and Ramp The irony now, as 2021 gets underway, is that vaccine distribution will Equipment News. As such, it builds on over be shackled by the self-same capacity problem. That, and difficulties in the 20 years of industry finishing stage, which is the point that bottling comes into the equation. experience and, with More glass is needed – and that means a cargo transportation requirement. a comprehensive and skilled team of writers Add to that the vaccines which require special, sub-zero containment, and based in both Europe the problem is simply exacerbated. and the US, aims to bring In retrospect, intercontinental trade sanctions and tariffs suddenly seem the reader up to date petty in the extreme. with the world of air transportation. Alwyn Brice, Managing Editor www.airlogisticsinternational.com February 2021 5 LOGISTICS UPDATE AN ILL WIND FOR SOME One unwelcome knock-on effect of the current pandemic, and all that it entails, has been the escalation in charges for freight transportation and cargo handling. Forwarders have slammed increases levied by Worldwide Flight Services in particular, calling the new tariffs “monstrous” and complaining that the service offered is not worth the increases; fewer staff and problems of readiness have simply exacerbated the situation. Quoting Airfreight donation a success rates of around £2,500 for a ten tonne s part of the 1 proect of atar Airways this proect, ensuring that shipment, forwarders have pointed out million kilos Cargo, under the terms of UNICEF cargo was safely that they are effectively being held to Acharitable initiative, which the airline donated transported to the UNICEF ransom, since their options are limited. uehneNagel and atar a million kilogrammes of lobal Supply Hub in In its defence, WFS has said that Airways Cargo have been freight for humanitarian Copenhagen, Denmark. The it continues to invest in technology to donating airfreight services aid including medical various essential supplies, assist the sector and that the onset of to UNICEF, supporting the supplies until the end of including protective the pandemic had occasioned it much agency’s global efforts in the 2020. The kilogramme offer equipment, were an more (unexpected) expense in order to fi ght against the CID-1 was allocated to freight important part of UNICEF’s comply with safety regulations. pandemic. forwarders to give to the efforts to keep health At the time of writing it was Triggered by the crisis, the charities of their choice. workers safe so that they understood that WFS’ latest tariffs initiative is part of the larger uehneNagel oined could continue to deliver exceeded those of handlers dnata, sustainability We are atar Airways Cargo in quality care. Menzies and Swissport. DUTCH VOLTE-FACE DRY ICE PROTOCOLS ate last year it looked as aircraft, they argued, were not With vaccine distribution kept at about -4 C and dry if the Dutch government necessarily bigger polluters now well underway, in a ice is the only widely available Lwould be levying a tax compared with their smaller safety alert the FAA has urged material that will maintain on freighters in Holland, siblings. Added to this is the caution and awareness in its that temperature. according to their MTW. irony that handling companies transportation, particularly The threat is that as the However, a study into the typically look to optimise where the packaging dry ice sublimates or moves impact of the proposed tax cargo loads, with maximum requirement is one of dry ice. from a solid to the gaseous revealed the short-sightedness capacity the overall goal The situation has seen cargo state, it might overwhelm of the concept, with in so doing, they would be carriers loading up aircraft the ventilation system on an opponents pointing out that effectively penalised. with up to fi ve times as much aircraft and threaten the crew. any introduction of such a tax The Dutch government dry ice than they would The issue is even more acute would merely oblige aircraft subsequently backtracked on normally be allowed to carry. on aircraft because the dry ice to relocate to other airports. its proposals and instead said With the recent approvals sublimates faster in lower air Moreover, analysts also noted that it would work towards granted by various pressure. Inter alia, the FAA that this environmental tax a freighter tax that would be governments for use and recommends the installation was skewed, citing that the introduced at a European level.