September, 2007

CoverINT 8/24/07 1:52 PM Page 1 WWW.AIRCARGOWORLD.COM SEPTEMBER 2007 INTERNATIONAL EDITION TheThe World’sWorld’sTopTop 5050CargoCargo AirlinesAirlines Canned Freight • U.S. Doldrums • Icelandair Project3 8/15/07 4:50 PM Page 1 THE SHOOT WAS RUNNING LATE, AND SO WAS THE EDITING. THANKS TO EQUATION, THE FILM WILL STILL GET TO TOKYO IN TIME FOR THE PREMIERE, TOMORROW. – Your urgent shipments have next flight boarding priority loading (tender up to 90 minutes prior to scheduled departure). – E-tracking and member schedules available on skyteamcargo.com Thanks to our 8 member airlines, we bring you 744 destinations in 149 countries with over 14,700 daily flights. 01TOCINT 8/27/07 3:30 PM Page 1 INTERNATIONAL EDITION September 2007 CONTENTS Volume 10, Number 7 COLUMNS Top Cargo 10 North America Airlines The domestic air cargo mar- The annual ranking of ket is foundering for a variety of 20 the world’s top 50 cargo air- reasons while the international lines by traffic, with aircraft side climbs orders and cargo revenue. 14 Europe Icelandair Cargo is looking beyond seafood transport as it looks to ramp up new cargo scale. 18 Pacific Korean air cargo interests face stiff competition from Chi- Contained nese interlopers determined to Cargo expand their regional markets 36 In today’s cost-con- science environment, the management and care of Unit Load Devices is neary as important as getting goods inside the cans. DEPARTMENTS 2 Edit Note 4 News Updates 42 People 44 Events 14 45 Classifieds 46 Bottom Line 48 Forwarder’s Forum WWW.aircargoworld.com Air Cargo World (ISSN 0745-5100) is published monthly by Commonwealth Business Media. Editorial and production offices are at 1270 National Press Building, Washington, DC, 20045, USA. Telephone: (202) 355-1172. Air Cargo World is a registered trademark of Commonwealth Business Media. ©2007. Periodicals postage paid at Newark, NJ and at additional mailing offices. Subscription rates: 1 year, $58; 2 year $92; outside USA surface mail/1 year $78; 2 year $132; outside US air mail/1 year $118; 2 year $212. Single copies $10. Express Delivery Guide, Carrier Guide, Freight Forwarder Directory and Airport Directory single copies $14.95 domestic; $21.95 overseas. Microfilm copies are available from University Microfilms, 300 North Zeeb Road, Ann Arbor, MI 48106. 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POSTMASTER and subscriber services: Call or write to Air Cargo World, Customer Care Department, 400 Windsor Corporate Park, 50 Millstone Rd., Suite 200, East Windsor, NJ 08520-1415, USA; telephone (888) 215-6084 September 2007 AirCargoWorld 1 02EditorialINT 8/24/07 11:03 AM Page 2 International Trends & Analysis Editor Editor’s Note Paul Page • [email protected] Managing Editor Robert Moorman • [email protected] Contributing Editors Roger Turney, Ian Putzger, Mike Seemuth Art & Production Director Jay Sevidal • [email protected] Editorial Offices 1270 National Press Bldg., Washington, DC 20045 (202) 355-1170 • Fax: (202) 355-1171 Airbus Workhorse GROUP PUBLISHER his summer Airbus delivered the last production A300, a Noreen Murray • (973) 848-7082 • [email protected] freighter, to FedEx with very little fanfare. The A300 may not Publisher have the historical significance to air freight as the DC-3 did Steve Prince • (770) 642-9170 • [email protected] T Advertising/Business Office for the Berlin Airlift of 1948-1949. But the big barrel fuselage 1080 Holcomb Bridge Rd. • Roswell Summit widebody is worth more than the manufacturer’s news release that Building 200, Suite 255 • Roswell, GA 30076 (770) 642-9170 • Fax: (770) 642-9982 fell across my desk. New England & Reprints, Classified Sales Air cargo has had a love-hate relationship with the A300 freighter since it Laura Rickman • [email protected] first entered revenue cargo service in 1974. Over the life of the program, over (770) 642-8036 International Advertising Offices 821 A300/A310s passenger and freighter versions have been ordered. And de- Europe, United Kingdom, Middle East David Collison • +44 192-381-7731 spite complaints over reliability from FedEx and other operators, the A300 [email protected] freighter has endured because, as one industry executive succinctly put it, “it Japan Masami Shimazaki • +81-42-372-2769 carries a hell of a lot of cargo.” [email protected] Thailand The -600 has a maximum payload of 107,000 pounds, with the capability Chower Narula • +66-2-641-26938 [email protected] for 21 maindeck pallet positions. Equally noteworthy, the Taiwan Ye Chang • +886 2-2378-2471 A300 was the first widebody, twin-engine aircraft every [email protected] Australia, New Zealand brought to the market, with a two-person cockpit. Fergus Maclagan • +61-2-9460-4560 [email protected] Though the A300 was built initially for passenger service, it Sri Lanka Jaiza Razik • +94-133-3424 was just a matter of time before the air cargo industry wanted [email protected] Korea their own variant. Mr. Jung-won Suh • +82-2-3275-5969 Between 105 and 110 production A300 freighters were built [email protected] Administrative Assistant in Toulouse and many more passenger versions were convert- Susan Addy • [email protected] ed. The early freighter models were conversions, the -B4s, and Display Advertising Traffic Coordinator Tracey Fiuza • [email protected] their value to air cargo were quickly noticed. (973) 848-7106 The reasonable price tag continues to be a major selling point Electronic Rights and Syndication Barbara Ross • [email protected] of the A300. Although listed new for $100 million per copy, the planes are signif- (973) 848-7186 icantly less today; used A300s are even cheaper. Passenger to conversion costs for CUSTOMER SERVICE OR TO SUBSCRIBE: (888) 215-6084 a A300-600 aircraft is reasonable, between $8 million and $10 million. Up until recently, the A300 was the only production freighter Airbus ever built. But the mantle has now been passed to the A330-200 freighter, a compos- ite-filled, fuel efficient plane capable of carrying 68 tonnes of cargo compared to 48 tonnes for the A300. The A330-200 is longer with two additional pallet posi- 400 Windsor Corporate Park tions on the maindeck and up to eight pallets on the lower deck. Sixty-seven or- 50 Millstone Rd., Suite 200 East Windsor, NJ 08520-1415 ders and commitments have been received for the A330-200 freighter. (609) 371-7700 • (800) 221-5488 But don’t expect the A300 to disappear even after the A330 freighter enters President and CEO Alan Glass Senior Vice President, CFO Dana Price service in early 2010. FedEx remains the largest operator with more than 120 Vice President, Magazine Group Peter Tirschwell in service. And China Southern Airlines is converting six A300s to freighters, Group Publisher Noreen Murray the last of which will arrive sometime in 2009. President, PIERS Brendan McCahill Vice President, Directory Databases Amy Middlebrook Despite its critics, the A300 freighter has many years of useful life left. No, it Vice President, Human Resources Kenneth P. Slivken will never be remembered for its fuel efficiency, but neither will the gas-guz- Vice President, zling DC-8 or 747-200 freighters. The A300 will be remembered for its ability Production & Manufacturing Meg Palladino Director of Circulation John Wengler to carry millions of tons of freight over thousands of miles. And for those in President, BACK Aviation Steven G. Casley air cargo, this is high praise. POSTMASTER: Send address change to: Air Cargo World, 400 Windsor Corporate Park, 50 Millstone Road, Suite 200, East Windsor, NJ 08520-1415.© 2007 Commonwealth Business Media Inc. — All Rights Reserved For more information visit our website at www.aircargoworld.com 2 AirCargoWorld September 2007 Project1 6/15/07 8:47 AM Page 1 YOU NEED TO KEEP STORE SHELVES STOCKED. YOU NEED RUSS KRUEGER. When does Agility’s Russ Krueger consider a job done? When his virtual distribution center in Seattle expedites the processing of video-game consoles from Japan? When his Direct-to-Store program substantially reduces retailer stock outs? For Russ, and 20,000 more Agility employees in over 100 countries around the world, success isn’t measured in boxes loaded or shipments tracked. Success occurs when our partners achieve their goals. It’s an intimate approach to logistics that demands individual attention and personal ownership. It’s how Russ Krueger brings Agility to retail customers. Russ Krueger Agility Sr. VP, Distribution Services agilitylogistics.com 04NewsUpdateINT 8/24/07 11:04 AM Page 4 UpdatesNews Getting Secure ir cargo companies say they’re Apleased enough with the way a landmark law on air shipping security in the United States worked out, especially given how strict some earlier proposals had been. “We have always supported a multi-layered approach to cargo security,” said Brandon Fried, executive director of the Airforwarders As- sociation. This bill, said Fried, gives the Transportation Security Adminis- tration the flexibility to include other, less intrusive methods of inspection.

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