QUALITY AND BEST PRACTICE IN AIR LOGISTICS OPERATIONS
THE RIGHT BLEND Craig Smyth on life at WFS
US airports report MIA pushes ahead
Conference reports Air Cargo Handling 2016; CCA Pharma & Biosciences 2016
Shifting sands Welcome on board Saudia Cargo’s bellyhold boost Shippers get involved in Cargo iQ
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MIAMI INTERNATIONAL AIRPORT America’s New Global Gateway www.miami-airport.com • iflymia [email protected] JAMES SHERIDAN QUALITY AND BEST PRACTICE IN AIR LOGISTICS OPERATIONS THE RIGHT BLEND Chairman Craig Smyth on life at WFS New world US airports report [email protected] MIA pushes ahead Conference reports Air Cargo Handling 2016; CCA Pharma & Biosciences 2016 disorder? ,QWHJUDWHGÁRZV :HOFRPHRQERDUG PARVEEN RAJA Amsterdam pilots new data links Shippers get involved in Cargo iQ :,17(5WWW.CAASINT.COM&$$6,17 Publisher [email protected] ike it or not, the election of the divisive Donald Trump as the next US president has implications for international freight MARTIN KINGWELL transport and supply chains. International Sales Director L Trump’s election is a mystery to many people outside and [email protected] inside the US. But as Robert Voltmann from US logistics trade body Transportation Intermediaries Association notes: “What both Brexit NOVA ABBOTT and the US election show us is that more attention needs to be paid to Sales Manager – Asia those negatively affected by globalisation.” [email protected] There is some evidence that Trump’s current understanding of
globalisation is simplistic and somewhat dated – for example, underplaying EDITOR’S NOTE YASMIN LYDON Events Coordinator the role that technology has played and will increasingly play in [email protected] transforming employment markets in industrialised countries. Presumably, various economic advisers will have an opportunity to brief him and his GEMMA KEEN team on some of the complexities of modern supply chains, where parts Events and Circulation for end products are often sourced from multiple countries. And there [email protected] will be plenty of interests, including big US logistics companies such as UPS and FedEx, arguing that free trade is vital for existing US jobs, not to SHOBHANA PATEL mention for international relations and global stability. The emphasis on US Head of Finance fi [email protected] jobs will probably be particularly important. But Trump will, presumably, have to show some signs of following SHELDON PINK through on his election promises. Few in freight transport would oppose Creative Director his promised investments in infrastructure. [email protected] Despite hopes of compromise in certain areas, most US commentators EHOLHYH WKH 7UDQV3DFLÀF 3DUWQHUVKLS 733 ZLOO QRW EH UDWLÀHG 2WKHU SOHAIL AHMAD 3DFLÀFFRXQWULHVPD\LQVWHDGWXUQWR&KLQD·VSURSRVHG)UHH7UDGH$UHD Conference Sales [email protected] RIWKH$VLD3DFLÀF$QG7UXPSPD\IROORZWKURXJKZLWKKLVVWDWHGSODQV WRDEDQGRQRUUHQHJRWLDWH1$)7$&DQDGDKDVVDLGLWLVRSHQWRVXFK Address changes and subscription discussions. orders to: [email protected] In general, it seems that the US under Trump will move away from ISSN 2054-8958 big, multi-nation free trade deals, instead favouring bilateral deals with countries of a similar economic maturity or structure. Whether that also EDITORIAL CONTRIBUTOR Mike Bryant, Stuart Todd, Phil Hastings PHDQVELJJHUWDULIIVRQJRRGVIURPFRXQWULHVOLNH&KLQDLVXQFOHDU The US may also make some moves towards encouraging ‘near-shoring’ PUBLISHED QUARTERLY BY or ‘re-shoring’ production. A ‘near-shoring’ trend began several years EVA International Media Ltd ago and has contributed to the ratio of international trade compared Boswell Cottage, 19 South End with GDP falling from a multiple of more than 2 a decade ago to below 1 Croydon, London, CR0 1BE, UK this year. But one might assume that the new version of near-shoring may Tel: + 44 (0) 20 8253 4000 Fax: + 44 (0)20 8603 7369 involve incentives favouring the US ‘rust-belt’, rather than Mexico. What m{x{P D{wDy © 9yww those incentives may be, and whether carrot or stick, remain unclear. Also unclear at this stage, like many things, are the implications for air PRINTED BY freight. But the US is no longer the world’s only economic playmaker. Headley Brothers And assuming sense prevails and we avoid a phase of harmful and The Invicta Press, Lower Queens Road contagious international protectionism or trade wars, a slowing in the rate Ashford, Kent, TN24 8HH, UK of globalisation would seem more likely than its reversal.Q DISTRIBUTED BY Asendia
EVA INTERNATIONAL MEDIA LTD PUBLISHERS & EVENTS SPECIALISTS
Issue 15 © 2016 | www.caasint.com WILL WATERS | Editor Content may not be reproduced in any format without written permission from EVA International Media Ltd [email protected] & [email protected]
:LQWHU CARGO AIRPORTS AIRLINE SERVICES 1 4
4 HANDLING SPOTLIGHT: CRAIG SMYTH New WFS chief aims to blend the fi rm’s entrepreneurial culture with the best elements of standardisation
12 AIRPORT FOCUS: Amsterdam pilots integrated lanes Streamlined cargo and data fl ows can cut logistics costs by 15%
16 CONFERENCE REPORT: CCA Pharma & Biosciences 2016 The challenges of transporting pharma products by air require better soft and technical skills, consistent processes, and greater standardisation
26 CONFERENCE REPORT: Air Cargo Handling 2016 Stakeholders debate what needs to change to ensure air freight’s future success
40 LOGISTICS TRENDS: Transformational technologies Automation and robotics will transform traditional manufacturing and warehousing practices – and freight fl ows
48 AIRPORT REPORT: North America International volumes have fallen this year. But the longer-term trend is of international growth and domestic declines at US international gateways
46 AMERICAS FOCUS: Healthy growth in Puerto Rico Increased demand from top global pharma shippers is driving investment among forwarders and carriers
54 TECHNOLOGY UPDATE: Drone deliveries take off A new type of unmanned aerial vehicle and the world’s fi rst nationwide network
56 CARGO IQ: Shippers come on board Cargo owners fi nally get involved in the air freight quality initiative
2 CARGO AIRPORTS AIRLINE SERVICES :LQWHU
JAMES SHERIDAN QUALITY AND BEST PRACTICE IN AIR LOGISTICS OPERATIONS THE RIGHT BLEND Chairman Craig Smyth on life at WFS New world US airports report [email protected] MIA pushes ahead Conference reports Air Cargo Handling 2016; CCA Pharma & Biosciences 2016 disorder? ,QWHJUDWHGÁRZV :HOFRPHRQERDUG PARVEEN RAJA Amsterdam pilots new data links Shippers get involved in Cargo iQ :,17(5WWW.CAASINT.COM&$$6,17 Publisher [email protected] ike it or not, the election of the divisive Donald Trump as the next US president has implications for international freight MARTIN KINGWELL transport and supply chains. International Sales Director L Trump’s election is a mystery to many people outside and [email protected] inside the US. But as Robert Voltmann from US logistics trade body Transportation Intermediaries Association notes: “What both Brexit NOVA ABBOTT and the US election show us is that more attention needs to be paid to Sales Manager – Asia those negatively affected by globalisation.” [email protected] There is some evidence that Trump’s current understanding of
globalisation is simplistic and somewhat dated – for example, underplaying EDITOR’S NOTE YASMIN LYDON Events Coordinator the role that technology has played and will increasingly play in [email protected] transforming employment markets in industrialised countries. Presumably, various economic advisers will have an opportunity to brief him and his GEMMA KEEN team on some of the complexities of modern supply chains, where parts Events and Circulation for end products are often sourced from multiple countries. And there [email protected] will be plenty of interests, including big US logistics companies such as UPS and FedEx, arguing that free trade is vital for existing US jobs, not to SHOBHANA PATEL mention for international relations and global stability. The emphasis on US Head of Finance fi [email protected] jobs will probably be particularly important. But Trump will, presumably, have to show some signs of following SHELDON PINK through on his election promises. Few in freight transport would oppose Creative Director his promised investments in infrastructure. [email protected] Despite hopes of compromise in certain areas, most US commentators EHOLHYH WKH 7UDQV3DFLÀF 3DUWQHUVKLS 733 ZLOO QRW EH UDWLÀHG 2WKHU SOHAIL AHMAD 3DFLÀFFRXQWULHVPD\LQVWHDGWXUQWR&KLQD·VSURSRVHG)UHH7UDGH$UHD Conference Sales [email protected] RIWKH$VLD3DFLÀF$QG7UXPSPD\IROORZWKURXJKZLWKKLVVWDWHGSODQV WRDEDQGRQRUUHQHJRWLDWH1$)7$&DQDGDKDVVDLGLWLVRSHQWRVXFK Address changes and subscription discussions. orders to: [email protected] In general, it seems that the US under Trump will move away from ISSN 2054-8958 big, multi-nation free trade deals, instead favouring bilateral deals with countries of a similar economic maturity or structure. Whether that also EDITORIAL CONTRIBUTOR Mike Bryant, Stuart Todd, Phil Hastings PHDQVELJJHUWDULIIVRQJRRGVIURPFRXQWULHVOLNH&KLQDLVXQFOHDU The US may also make some moves towards encouraging ‘near-shoring’ PUBLISHED QUARTERLY BY or ‘re-shoring’ production. A ‘near-shoring’ trend began several years EVA International Media Ltd ago and has contributed to the ratio of international trade compared Boswell Cottage, 19 South End with GDP falling from a multiple of more than 2 a decade ago to below 1 Croydon, London, CR0 1BE, UK this year. But one might assume that the new version of near-shoring may Tel: + 44 (0) 20 8253 4000 Fax: + 44 (0)20 8603 7369 involve incentives favouring the US ‘rust-belt’, rather than Mexico. What m{x{P D{wDy © 9yww those incentives may be, and whether carrot or stick, remain unclear. Also unclear at this stage, like many things, are the implications for air PRINTED BY freight. But the US is no longer the world’s only economic playmaker. Headley Brothers And assuming sense prevails and we avoid a phase of harmful and The Invicta Press, Lower Queens Road contagious international protectionism or trade wars, a slowing in the rate Ashford, Kent, TN24 8HH, UK of globalisation would seem more likely than its reversal.Q DISTRIBUTED BY Asendia
EVA INTERNATIONAL MEDIA LTD PUBLISHERS & EVENTS SPECIALISTS
Issue 15 © 2016 | www.caasint.com WILL WATERS | Editor Content may not be reproduced in any format without written permission from EVA International Media Ltd [email protected] & [email protected]
:LQWHU CARGO AIRPORTS AIRLINE SERVICES 1 4
4 HANDLING SPOTLIGHT: CRAIG SMYTH New WFS chief aims to blend the fi rm’s entrepreneurial culture with the best elements of standardisation
12 AIRPORT FOCUS: Amsterdam pilots integrated lanes Streamlined cargo and data fl ows can cut logistics costs by 15%
16 CONFERENCE REPORT: CCA Pharma & Biosciences 2016 The challenges of transporting pharma products by air require better soft and technical skills, consistent processes, and greater standardisation
26 CONFERENCE REPORT: Air Cargo Handling 2016 Stakeholders debate what needs to change to ensure air freight’s future success
40 LOGISTICS TRENDS: Transformational technologies Automation and robotics will transform traditional manufacturing and warehousing practices – and freight fl ows
48 AIRPORT REPORT: North America International volumes have fallen this year. But the longer-term trend is of international growth and domestic declines at US international gateways
46 AMERICAS FOCUS: Healthy growth in Puerto Rico Increased demand from top global pharma shippers is driving investment among forwarders and carriers
54 TECHNOLOGY UPDATE: Drone deliveries take off A new type of unmanned aerial vehicle and the world’s fi rst nationwide network
56 CARGO IQ: Shippers come on board Cargo owners fi nally get involved in the air freight quality initiative
2 CARGO AIRPORTS AIRLINE SERVICES :LQWHU
&$5*2+$1'/,1*,17(59,(: :25/':,'()/,*+76(59,&(6 A pragmatic approach
4 CARGO AIRPORTS AIRLINE SERVICES :LQWHU &$5*2+$1'/,1*,17(59,(: :25/':,'()/,*+76(59,&(6
New president and CEO Craig Smyth aims to combine the entrepreneurial culture of WFS with the best elements from his ‘standardisation’ experience at Menzies, he tells Will Waters
he appointment this sum- Over the last 18 months, Smyth says he mer of airport services in- has had a lot of time to think about cargo dustry veteran Craig Smyth handling and ground handling, and what T as president and CEO of he and others got right in the past, and got Worldwide Flight Services wrong in the past – and to try and make (WFS) appears on the surface to be an ex- it different, better, more and successful in cellent match for both the ambitious and the future. acquisitive WFS and the man credited by So, having spent some time outside many for taking Menzies Aviation from rela- of the industry, what are his perceptions tively small beginnings to one of the largest about the cargo handling business? aviation services businesses in the world. “I think the industry is massively under- A chartered accountant by trade, Smyth LQYHVWHGµKHUHÁHFWV´,WKLQNLWLVUHDOO\VWLOO spent more than 20 years at John Menzies a new industry, independent ground han- plc, where he served as managing director dling and cargo handling. Yes, it has been “I think it is really of Menzies Aviation for 10 years and prior around for 20-25 years, but it is only in the still a new industry, WRWKDWDVWKHFRPSDQ\·VFKLHIÀQDQFLDORI last 10 years that the big players have got ÀFHU%XWDOWKRXJK6P\WKKDGEHHQZLGHO\ bigger and there is a big pack emerging. independent ground tipped to become chief executive of John There is Swissport, WFS, Dnata, and Men- handling and cargo Menzies plc, he resigned in August 2014 zies. And then there are the regional guys as the group sought an external candidate and the small guys.” handling. Yes, it has for the CEO role. been around for 20-25 After working on various merger and ac- 6FDOHEHQHÀWV years, but it is only in TXLVLWLRQ SURMHFWV IRU SULYDWH HTXLW\ ÀUPV +HWKLQNVWKDWVRPHWLPHVWKHVFDOHEHQHÀWV Smyth was approached this year by head- DUHKDUGWRVHH´%XW,WKLQNWKHUHDUHVFDOH the last 10 years that hunters working for WFS’ owners Platinum EHQHÀWV RI KDYLQJ RQH FHQWUDO LQIUDVWUXF the big players have Equity following the surprise departure of ture, be that in London Heathrow for Men- 2OLYLHU%LMDRXLZLWK6P\WKMRLQLQJ:)6DW zies or Paris for WFS.” These include clear got bigger and there is the end of August. EHQHÀWVHYHQEHIRUH\RXJHWWRWKLQJVOLNH a big pack emerging” “I think we both got lucky with the tim- MRLQWVWDQGDUGVRUEDFNRIÀFHIXQFWLRQV ing,” Smyth says. “I’m 49 years old, and I “It is also about having one CEO, one CFO, Craig Smyth was with my last organisation for 22 years, one central management team, one consoli- and there is no end date on this one. So I dation point, one insurance policy – these want to go on for 10 or 15 years and take sorts of things that can be global,” Smyth WFS and keep it up there as the number- says. “At Menzies, if we go back 15 years, my one cargo operator and back that up with KHDG RIÀFH FRVW ZDV PLOOLRQ \HDUV improvements, as well as taking it into the later, we spent our money differently, but it ground handling scene. And then, in time, ZDVVWLOO PLOOLRQµ0HDQZKLOHDUHJLRQDO build the ancillaries – the lounges, the fuel- cargo handler one third of the size would ling, the cleaning, and these other things OLNHO\KDYHDVLPLODUKHDGRIÀFHFRVW²DFRVW that might go with it operationally – and that could be eliminated through a merger. what customers might want to buy; get “So you’ve got to be big to get that scale more ‘share of the purse’, as they say.” EHQHÀW JHW WKDW RQH PDQDJHPHQW WHDP
:LQWHU CARGO AIRPORTS AIRLINE SERVICES 5 &$5*2+$1'/,1*,17(59,(: :25/':,'()/,*+76(59,&(6
one set of systems,” he says. “And after and it goes somewhere else, and is han- be entrepreneurial, who will try and pre- that, if you are going to be a global fran- dled by another handler, and the passen- vent problems and try and solve problems chise and brand, then you’ve got to have ger get off and moves himself and his bags when they happen who have tried to locally similar standards – at least a baseline of through the airport – whereas cargo needs harness IT, technology, and come up with VWDQGDUGLVDWLRQ DQG VLPSOLÀFDWLRQ DQG ,7 somebody to push it the 50 metres or 100 standards and processes, because that’s that backs that up. metres, and do things to it. what they wanted to do or that’s what the “And then when an airline is shopping airlines forced them to do. for a handler, they know that WFS in Los *OREDOSURJUDPPHV ´%XWHYHU\RQHKDVEHHQIRFXVHGRQWKH Angeles is at least the same as WFS in New “So, it is really the cargo parts of airlines that day-to-day job and nobody has been col- CARGO AIRPORTS AIRLINE SERVICES :LQWHU &$5*2+$1'/,1*,17(59,(: :25/':,'()/,*+76(59,&(6 Even then, the process is never com- of standardising and systemising busi- fundamentally changing the businesses, plete. “It was like painting the Forth Road ness, making the average manager a good but to me it is about lots of incremental %ULGJH \RX DUH QHYHU TXLWH WKHUHµ QRWHV manager, and making the good manager a change; I’m not going to launch a trans- Smyth. “The IT guys would be saying we’re great manager; and obviously you have got formational programme, because there is JRLQJWR9RU9 DQG,ZRXOGEHVD\LQJ , to have a process to retrain poor managers so much that can be done getting up to a just want V5 everywhere! or redeploy them, or they are out”. good new WFS standard that people prob- ´%XW,WKLQNLWZDVJHWWLQJWKHUHZLWKV\V He suggests a similar pragmatic ap- ably won’t know it is actually happening.” tems, particularly safety and security, and proach on the IT side. “If some have got then operational management systems, Cargospot version 3 and others Cargospot 7DQJLEOHEHQHÀWV and a compliance programme checked by version 5 and version 7 comes out, maybe The aim is also to try to do it in a way that of- an external agency. And that paid some we don’t have to all go to 7, but let’s all IHUVWDQJLEOHDQGYLVLEOHEHQHÀWVWRSHRSOH dividends. So, these are some of the things get on to version 5, and then we can learn on a regional and local basis. you can do.” what is good about version 7, and bring “Correct. And they are thoroughly nice, %XW KH VWUHVVHV WKDW WKHUH LV QRWKLQJ that into the business.” decent people, all trying very hard, going wrong with the way WFS has done things He senses that there is a willingness to beyond the call of duty to the business. So, up until now. “It is been incredibly success- go with that approach among the different I think they will get with the programmes.” ful, arguably more successful than my old parts of the business. +HDOVRDFNQRZOHGJHVWKHQHHGWRÀQG company, because the strategy has been “It may just be a honeymoon period, the right balance between local entrepre- very good, and the execution has been but everyone has been very receptive to neurship and initiative versus standardisa- down to local management,” Smyth says. me and to the ideas,” he says. “Things tion and common standards. What he would like to bring in is “a way ZLOO EH PRUH GLIÀFXOW ZKHQ LW FRPHV WR “You certainly don’t want to take it away How we got a cruise ship running again. When a cruise ship was stuck in a docking area last summer, we delivered a spare drive shaft for the ship’s propeller as quickly as possible from Zurich to the Port of Hamburg so that the ship could start operating again with out further revenue losses. This is just one of the many success stories we share with our customers. swissworldcargo.com We care for your cargo. :LQWHU CARGO AIRPORTS AIRLINE SERVICES 7 &$5*2+$1'/,1*,17(59,(: :25/':,'()/,*+76(59,&(6 from the entrepreneurship,” he notes. “For diminishing returns from being completely DQGOLWWOHELWVLQ%DQJNRNDQGFRPHXSZLWK me, rather than being a federation of dif- proceduralised and standardized.” a ‘secret sauce’ formula for ground handling ferent businesses with a common brand or and see if we can get some traction organi- ÁDJLWLVJRLQJWREHUXQDVDQHWZRUNZLWK ([SDQVLRQSODQ cally”, Smyth says. central functions.” And the plan is for WFS to continue with its At a certain point, the company can also That will also take some time to put in expansion, including acquisitions. “For me, make some bigger calls on ground han- place, in part because it involves bringing WFS is essentially a cargo business,” Smyth dling acquisitions. “The top nine ground in new people to the those new central says. “There are so many people that have handlers still occupy just 20% of the total functions, and for those new managers to got this deep, deep knowledge and under- market. So, there is 30% available, and come up with the policies and procedures standing – deeper than mine. And there then there is another 50% that the airlines and implementation. are things that we can do to optimise some haven’t outsourced yet. “At the moment there are none of those of the cargo business, whether it is IT and “So, they don’t have to knock the hell out central functions,” explains Smyth. productivity; creating more capacity for ex- of each other within that 10%. Of course, “I am out recruiting a head of people, pansion, as customers grow or to add new we will go after every piece of business that head of security and safety; I have got a customers; to go and add a second facility we can, but there is still 30% with the small head of IT who comes in from Swissport on or a third and fourth facility; to go and create regional players and the local country or 1 December.” more scale. station ‘mom and pops’,” Smyth observes. 7KH\ZLOODOOEHLQSODFHE\WKHÀUVWTXDU “So that will be part of the strategy where ter of next year, but are likely to take six we have got a presence – organic market 6\QHUJLHVRIFDUJR DQGJURXQGKDQGOLQJ He says there are enough synergies be- tween cargo and ground handling for it to make sense to push further into that ground handling side of business. “Number one, airlines do tend to buy both together,” he explains. “Some airlines don’t separate cargo out, so they are the RQHV ZKHUH LW LV HDV\ JURXQG KDQGOLQJ includes cargo, so if you’ve got a cargo fa- cility, you get the business. And then there are the bigger cargo airlines like Lufthansa or Emirates, who have bought cargo sepa- rately, but maybe now central procurement LVKDYLQJDQLQÁXHQFHµ months to bed in and travel and talk to share. And sometimes we may have to In addition to these elements that the people. “So I still need to rely on the ‘en- make lumpy investments – because if customer is driving, there is also the advan- trepreneurial-ness’ of the business,” he you have got a cargo shed, you can’t add tage of already being on an airport, “with a stresses. “And beyond the standardization, 10% each year because that’s the way the presence, with an infrastructure, with local each airline still wants something slightly IUHLJKWWUDIÀFPRYHV VRPHWLPHV\RXKDYH knowledge about what might be possible different, they will have a slightly different WRWDNHRQÀYHWLPHVRXUQHHGEXWZHZLOO and who is looking for a change,” Smyth ÁDYRXUµ win more business because there is more adds. Other synergies include the opportu- In addition, he also wants WFS to be business in the market. So we will have to nity for ground handling staff to use spare LQYROYHGLQVWDQGDUGLVDWLRQDQGVLPSOLÀFD make some calls like that. RIÀFHVSDFHLQFDUJRIDFLOLWLHVIRUH[DPSOH tion initiatives that industry bodies such as “And then we can get into new countries, where technology has automated some IATA come up with as well, “because I think new regions, as well with cargo.” cargo administration functions. that is good for the industry”. His thinking is to standardize around 80- *URZLQJJURXQGKDQGOLQJ &$6LQWHJUDWLRQ 85%. “Then after that there will be choices %XWDORQJVLGHWKLVFDUJRH[SDQVLRQZLOOEHD Meanwhile, the integration of the CAS ac- as to whether you want to grow your busi- strategy to grow the ground handling busi- quisition, completed on 20 February, is go- ness at this level and have a big growth ness, “and take the good little businesses ing well. “CAS was a rollup of three or four agenda, or go and chase down incremental we have got in North America and Spain, businesses over three or four years, so they 8 CARGO AIRPORTS AIRLINE SERVICES :LQWHU &$5*2+$1'/,1*,17(59,(: :25/':,'()/,*+76(59,&(6 have been buying businesses and integrat- “So, I think there will be a levelling up to ing them for some time, before the process a good standard, and also sharing of best with Platinum and WFS,” Smyth notes. practice, and then after a couple of years it WFS’s existing business in North Amer- will be all about looking at a showcase here, ica was about a quarter the size of CAS. and a showcase there,” Smyth says. “There “So, effectively, it is a reverse takeover of will be a much more collaborative business CAS,” Smyth says. “Six months in, they are than before. It will be a network, with empow- well down the route of delivering the syner- ered people with entrepreneurial spirit, but gies, and the heavy lifting of the integration running to a common set of practices and will be done by the end of the year.” procedures, and with the IT to back it up.” Physically, there is quite a lot of consoli- %XWKHLVZDU\RILQWURGXFLQJFRQWLQXRXV dation of facilities, where they will end up improvement processes like ‘Six Sigma’, at with fewer cargo warehouses, mostly with least at the current time. WFS moving into CAS facilities. “It is four “We will see. There are a few people that cargo facilities into three, or three into two, Smyth: CAS was a really good we may bring in to look at the optimisation strategic decision or two into one,” Smyth reports. RIFDUJRIDFLOLWLHV KRZZHXVHWKHVSDFH “So, there is quite a lot of cost being WKH WUDIÀF ÁRZV ZLWKLQ KRZ ZH FRQWURO taken out, in people as well.” “So, they are already talking to some of manpower – do people ‘clock-card’ in? Do %XWWKHEXVLQHVVZLOODOVREHUXQE\EHW the Europeans about what that might look we use a biometric scanner? Do we know ter quality people – “because CAS was a like in Europe. So, it might only be that 80% that people who are there are doing the much better-run business than the WFS of the ePic system is suitable for Europe, job; do we know from the training records business in North America”, Smyth says. EHFDXVH LQ WKH 86 LW LV D SUHSDLG V\VWHP that they are properly trained for what they He says WFS’ European business had for imports; in Europe, you pay at the end are doing? And then have roster planning always been really strong, but its North of the month. So, there may be some vari- that talks to that and talks to payroll. America business “lost its way” in ground ations because of that, but essentially the “All of that will be about getting up to a handling and in cargo. same core system.” level, and that is two or three years’ work. “CAS was a really good strategic deci- The sharing of the best IT systems After that, we can talk about things like ‘Six sion, as well as bringing in a good new throughout the group may also take place 6LJPD· %XW DV DQ LQGXVWU\ QRERG\ UHDOO\ management team who are all industry in ground handling – for example, a ground gets off on these posh consultancy words; stars,” Smyth says. “So, 2017 will be a handling system in Spain might be rolled ,WKLQNSHRSOHDUHWHUULÀHGRIWKHPµ chance for that business to settle down RXW LQ WKH 86 $QG VRPH RI WKH V\VWHPV He also intends to steer away from and improve the quality and consistency of XVHGE\:)6LQ%DQJNRNDUHDOVRVDLGWR having ‘business-improvement plans’, or the service.” be world-class. ‘transformational managers’ or ‘trans- He says some of the IT used by CAS is formational projects’, instead favouring leading edge, especially front end systems 6KDULQJEHVWSUDFWLFH straightforward ideas and expressions like such as Cargospot, and it is likely that WFS 7KLVKLJKOLJKWVRQHRIWKHEHQHÀWVRIEH ‘improving your business’. will globally adopt some of the CAS sys- ing part of bigger system, the sharing of “That is what we are going to do,” he tems and practices. best practice. says. “We will be really pragmatic.” QQQ CARGO AIRPORTS AIRLINE SERVICES :LQWHU Don‘t worry, it‘s with Frankfurt Airport Join all the other top cargo players at Europe’s Nr. 1 Cargo Hub Europe’s Leading Cargo Hub Various companies at the airport are specialized in the handling of fragile and valuable goods. However, we do not only care for those types of products: Frankfurt Airport also houses Europe’s largest Perishables Center, the world’s most modern animal station, DGR storage facilities, and state-of-the-art GDP-certified pharmaceuticals handling space. www.frankfurt-airport.com/cargo AIRPORT FOCUS: AIRPORT FOCUS: AMSTERDAM SCHIPHOL Amsterdam ‘frontrunners’ pilot integrated lanes ir freight ‘frontrunners’ in Stekelenburg, head of cargo at Schiphol. Streamlined cargo the Netherlands have cre- “This is a tangible innovation push for DQGLQIRUPDWLRQÁRZV DWHG WKHLU ÀUVW WZR IXOO\ members of the Schiphol cargo com- A integrated and stream- PXQLW\ DLPHG DW UHDOLVLQJ HIÀFLHQFLHV EHWZHHQDLUIUHLJKW lined end-to-end air freight reducing costs, and enhancing services,” LQGXVWU\VWDNHKROGHUV lanes, underpinned by open and transpar- he says. “The community is putting in ent data exchange processes between all the effort, with companies willing to take FDQFXWFRVWVLQWKH the parties in the air logistics chain, with risks and spend resources, and we are more planned to follow. seeing results.” VXSSO\FKDLQE\ As well as reinforcing Amsterdam The initiative’s steering committee in- UHSRUWVWill Waters Schiphol Airport’s reputation as a ‘smart cludes Schiphol Cargo as chair, KLM Cargo, hub’, the Smart Cargo Mainport Programme Dutch Customs, and air cargo community aims to provide greater visibility, improve and data specialist Cargonaut. In addition the speed and predictability of cargo and to investments from its participants, the SURGXFW ÁRZV UHGXFH VXSSO\ FKDLQ FRVWV programme has attracted €375,000 of improve asset utilisation of the participants, Dutch Government funding and the back- and expand the effective catchment area of ing of the University of Delft and Hoge- Schiphol airport and its cargo stakeholders. school van Amsterdam. 7KHODWHVWLQLWLDWLYHIRUVKLSPHQWVIURPÁRZ /DVWPRQWK./0&DUJRODXQFKHGWKHÀUVW er shippers claims to cut costs in the supply pilot scheme, aimed at “speeding up and chain by at least 15%. HQKDQFLQJ WKH HIÀFLHQF\RI (XURSHDQ VXS The programme projects centre on cargo SO\FKDLQVµ,WIRFXVHVVSHFLÀFDOO\DWOHDVW ÁRZV HQFRXUDJLQJ FRRSHUDWLRQ EHWZHHQ initially, on cargo brought from Frankfurt to the different parties in the supply chain, Schiphol for subsequent international ship- as well as data sharing, says Jonas van ment. The pilot’s consortium of participants 12 CARGO AIRPORTS AIRLINE SERVICES :LQWHU AIRPORT FOCUS: AMSTERDAM SCHIPHOL includes Schiphol Cargo, Jan de Rijk Logis- administrative data, it will also facilitate The latest initiative tics, Swissport, Kuehne + Nagel, Cargonaut, the exchange of status information relating and Dutch Customs – all the main key ac- to the shipments, the participants said. for shipments from tors in the air logistics chain. Cargo Airports & Airline Services (CAAS) ÁRZHUVKLSSHUV “Under the scheme, a distinction has understands that all of the participants been drawn between shipments with are able to draw down data about the claims to cut costs in shorter connecting times and those with shipments and their level of time-pressure the supply chain by less time pressure, and a new schedule is SULRULW\LQRUGHUWRFUHDWHWKHPRVWHIÀFLHQW being trialled,” the participants say. “The transport plan for the shipments and the at least 15% VFKHGXOHPDUNVWKHÀUVWVWHSWRZDUGVVHW vehicles used for their transport. ting up a Cloud platform facilitating data 0DUFHO GH 1RRLMHU (93 RI ./0 &DUJR exchange among the cooperating parties. and MD of Martinair Holland, comments: Once data has been delivered in real-time “We constantly have to deliver value in the it can be reused, supplemented or modi- hyper-competitive air freight market. In the ÀHGZKHUHQHFHVVDU\µ ideal supply chain it is all about co-oper- The information is also automatically ation and optimisation of the movement YHULÀHG DJDLQVW WKH DSSOLFDEOH &XVWRPV of shipments, both in the air as well as on regulations and safety standards. Not the ground. Therefore transparency and only will this support the exchange of access to data through digitisation is key. Air Cargo Handling Systems SOLVING YOUR CARGO HANDLING CHALLENGES www.saco.aero SACO Industrieweg 2 P.O. Box 47 T +31 (0)492 430 059 [email protected] a division of SMA BV AIRPORT EQUIPMENT NL-5731 HR Mierlo NL-5730 AA Mierlo F +31 (0)492 432 713 www.saco.aero :LQWHU CARGO AIRPORTS AIRLINE SERVICES 13 AIRPORT FOCUS: AMSTERDAM SCHIPHOL /5 -RQDVYDQ6WHNHOHQEXUJKHDGRIFDUJR6FKLSKRO$LUSRUW 0DUFHOGH 1RRLMHU(93&DUJR./0 1DQQH2QODQGH[HFXWLYHGLUHFWRU&DUJRQDXW “The Smart Mainport Programme is all frontrunners to realise our vision of the “The strategic Royal FloraHolland pro- about that; to ensure maximum value to our smartest cargo airport,” Onland says. “It is gramme FLOW aims at increasing margins customers and strengthening the ground about facilitating the design and delivery of for our stakeholders and reducing costs in processes with all stakeholders. That is the data-driven, predictable and compliant air WKHVXSSO\FKDLQE\DWOHDVWµVD\V(G- power of innovative co-operation.” cargo processes. It is not about the Cloud, win Wenink, programme director for FLOW Nanne Onland, executive director of it is about what we do with it.” at Royal FloraHolland. “Cooperation and Cargonaut, told CAAS that the participants At the heart of the programme is the the integration of IT systems is essential to in the programme recognise that industry question of how to effectively implement a do that.” initiatives to create an integrated air logis- ‘long term vision, short term results’ vision, Schiphol Cargo intends to back fur- tics chain industry-wide, including shared the participants say. A blueprint has been WKHUSURMHFWVDLPHGDWÀQGLQJLQQRYDWLYH data from all participants, would take a developed by the team outlining where the VFKHPHV WR LPSURYH FDUJR ÁRZ WKURXJK long time to realise, in part because of project aims to be by 2025, at the same the Amsterdam hub, underpinned by an apparent reluctance among some par- time as establishing numerous shorter- the transparent exchange of data. The ties to share their data. The Smart Cargo term pilots with airport stakeholders. Smart Cargo Mainport Programme is also Mainport Programme is a demonstration The second pilot scheme currently expected to attract further Dutch govern- by like-minded “frontrunners” of what can underway also brings together all of the ment funding. be achieved when the participants in the participants of the supply chain to work 9DQ 6WHNHOHQEXUJ VD\V ´7KH LQVLJKW air logistics chain collaborate and share collaboratively towards improved services and learning we are gaining from the pro- data on shipments, having established suf- through the hub. The newly formed Hol- gramme is open to all Schiphol cargo com- ÀFLHQWPXWXDOWUXVW land Flower Alliance’s data transfer initia- munity members and we are seeking more “The Smart Cargo Mainport Programme tive has both importer Fresco Flowers and projects and asking for more innovative (SCMP) is The Dutch partnership of Royal FloraHolland on board. ideas.” QQQ 14 CARGO AIRPORTS AIRLINE SERVICES :LQWHU CONFERENCE REPORT The multi-dimensional challenges of transporting pharma products by air require better soft CCA PHARMA & BIOSCIENCES CCA PHARMA & BIOSCIENCES and technical skills, consistent processes, and greater standardisation, writes Megan Ramsay Relay race he transport of pharma- “We need an open debate about where CARE IN THE ceutical and life science we can go as an industry; let’s be undip- COMMUNITY products by air is improv- lomatic and controversial if need be. We Greater collaboration and a greater T ing. But the multi-dimen- need to close the gap between where we emphasis on data can reduce audit sional challenges of safely are and where we want to be.” fatigue as well as creating more resilient cool chains transporting these complex, life-sustain- How, then, might this gap be closed? ing products require better soft and According to Youssef Beydoun, head Day one of the Cool Chain Associa- technical skills, consistent processes, of cargo planning and compliance at tion’s 4th Pharma and Biosciences and greater standardisation, as well as Dubai Airports, there are two key is- Conference, held this year in Dubai, opened with an energetic call to better physical infrastructure, delegates sues: “You have to consider the role of action by conference chairman Se- heard at this year’s Cool Chain Associa- people involved in the process – for in- bastiaan Scholte, CEO of Jan de Rijk Logistics and chairman of the Cool tion Pharma & Biosciences Conference stance, think about when the Chinese Chain Association (CCA). in Dubai. built the Great Wall to prevent aggres- “It’s up to us, collectively, to Kim Winter, global CEO of Logistics sors entering, but didn’t train people decide whether we are just going Executive Group, observed: “Nowadays to protect it,” he noted. “So training to talk and listen, or really make a difference,” Scholte said, after point- we have many of the same issues that (which is part of CEIV and other pro- ing out the practical contributions we faced when I started in this industry grammes like it) is important.” CCA and IATA have made so far in creating a set of standards for the in 1989: things like trust, collaboration, Second, the authorities play a major transport of pharmaceutical ship- cost, safety and security. But things are role. “We need to eliminate as many steps ments by air. more sophisticated now in terms of tech- in the process as possible, because each Topics discussed on the opening day included positive developments nology and data. step exposes cargo to the elements,” 16 CARGO AIRPORTS AIRLINE SERVICES :LQWHU I am the INTUITION in your cargo. Nina Strippel, Manager Sales and Customer Service A profound knowledge and excellent references have been two reasons why we have decided to hire Nina Strippel in 2013. Four more reasons are: waltz, foxtrot, tango and samba. As a passionate dancer Nina is well aware that know-how does help to move – but to really get ahead together it also requires beat, caution and foresight. Count on LUG’s more than 45 years of experience and the precision and passion running in the blood of Nina. Challenge Nina Strippel. Dial: +49 (0) 69 698 19 - 500 We are closer CCA PHARMA & BIOSCIENCES CONFERENCE REPORT Beydoun explained. “Not to toot our own horn, but the air-to-air process at DXB/ DWC is one of a kind. The world could learn from this. The authorities have a role in making this corridor secure.” Challenges But there are numerous challenges to be overcome before the cool chain can improve the services it provides – particu- larly given the wide variation in standards from one country or region to another. Muhammad Naseer Haider, senior cargo operations manager at Sharjah Aviation Services, offers the example of CEIV cer- WLÀFDWLRQ ´6LQFH REWDLQLQJ FHUWLÀFDWLRQ we have faced challenges because of a lack of awareness among manufacturers, shippers and forwarders of what we are WU\LQJ WR LPSOHPHQW :H DUH WKH ÀUVW WR have it in the region and that brings many challenges. If IATA or the authorities can in pharma logistics – such as the increase in dedicated cool centres around the world, from Frankfurt to Shanghai to New York to Dubai. IT’S ALL ABOUT Therese Puetz, CEO of Karavan Man- SPACE agement Consulting, said the next generation would work with a ‘smart’ cold chain, using new technology developed in the face of increasing regulation and competition, and with a greater emphasis on data. Indeed, the importance of collect- ing and effectively interpreting data relating to pharma shipments was stressed as essential for improving the supply chain. Bert Allard Jor- ritsma, manager for special cargo A leading air cargo brokerage who offers scheduled cargo and service delivery at Emirates Airline, declared: “There is no point fl ights & rapid solutions for cargo charter fl ights worldwide. collecting data unless we use it,” the operative word being ‘we’, as Jorritsma urged greater alignment and communication across the cool chain community. A panel discussion considered the challenges facing the cool chain and how these might be addressed. According to moderator Kim Winter, global CEO at Logistics Executive Group, there is no ‘silver bullet’, no +32 4 225 83 16 single point of responsibility in the complex arena of pharmaceutical [email protected] logistics. He highlighted the need Building 17, Cargo Nord - Liège Airport to “rise above our fear of sharing 4460 Grâce-Hollogne - Belgium information” and to train the next generation in soft skills like commu- nication and leadership as well as Charter & Scheduled Flights weflycargo.com 18 CARGO AIRPORTS AIRLINE SERVICES :LQWHU CCA PHARMA & BIOSCIENCES CONFERENCE REPORT technical know-how. Puetz remarked that improve- ments at hubs like Dubai are driving development at other airports, as customers demand similar services and standards globally. Andrew Lester, global director for health- care at forwarder Expeditors, noted the varying standards imposed by authorities in different countries. This point was taken up by Youssef Beydoun, head of cargo planning and compliance at Dubai Airports, who said: “We need to get the au- thorities engaged in our activities.” Muhammed Naseer Haider, senior cargo operations manager at Sharjah Aviation Services, pointed out that IATA’s CEIV initiative was a good place to start in terms of harmonising standards across the implement some common procedures supply chain, according to Expeditors’ industry. based on a common platform for every- global director for healthcare Andrew From a shipper’s perspective, Gino Vleugels, senior manager one, this will change,” he said – but that Lester, is the focus on temperature con- for temperature control, EMEA, does not seem likely to happen overnight. trol rather than GDP as a whole. “It is at Johnson & Johnson, said com- munication with forwarders and Gino Vleugels, senior manager for tem- important, of course, but without train- airlines is vital to ensure the stability perature control at Johnson & Johnson ing and the right processes, we might as of pharma products. But manag- ing customer expectations is also (0($SRLQWHGRXWWKDWLWFDQEHGLIÀFXOW well put a herd of monkeys in charge,” he important, as well as regulatory to establish a dialogue with the authori- said. “We need clear guidelines on how to requirements and the various limita- WLHV:LWKWKHÀUVWGUDIWRIWKH(8·V*'3 manage GDP. There is huge variation in tions that can affect a particular shipment, argued Juergen Scherr, guidelines, “We could review and com- how the authorities approach it too – for director of pharma and healthcare ment so the guidelines are good but also LQVWDQFH DQ DXGLW LQ WKH 8. FRXOG WDNH airfreight services Eastern Europe, Middle East and Africa for Kuehne workable”, he noted. “But elsewhere, two days, while in Belgium we had one + Nagel. He stressed the need for compliance can increase cost.” WKDWWRRNVHYHQKRXUVDQGRQHLQWKH86 collaboration based on joint under- standing of each part of the supply One of the biggest problems in the lasted only 45 minutes.” chain from shipper to consignee. :LQWHU CARGO AIRPORTS AIRLINE SERVICES 19 CCA PHARMA & BIOSCIENCES CONFERENCE REPORT The weakest link have that mechanism, so it is vital we get it He continued: “We need to consider the right,” he stressed. AUDIT FATIGUE Ben Mills, pharmaceutical technical origin, destination and transhipments – And ‘getting it right’ varies according lead at the British Standards Institu- we are only as strong as our weakest link. to the shipment. Vleugels explained that tion, spoke on the issue of ‘audit fatigue’. “We should all see audits Global consistency in the interpretation and there are higher- and lower-value goods, as a positive way to gain deeper enforcement of GDP would help the whole ranging from beauty products to biophar- insights,” he said, advocating a re- duction in repetition of audits – with a community. Meanwhile, we have to try and maceuticals. There is a need for dialogue consortium approach, Rx-360, being choose a high enough level, because there between shippers and forwarders to en- his favoured solution. is a patient at the end of each shipment. sure the correct service is used for the Ronald Schaefer, project lead for IATA’s Centre of Excellence for With food, another cool chain product, you product concerned – for instance, cool Pharma Logistics (CEIV Pharma) can tell if it’s off, if it smells bad or looks dollies may not always be necessary. programme, recommended a com- munity approach as the best way to bad or tastes bad; we have years of evolu- “We have no direct link with the airlines – ensure greater supply chain integrity tion behind that. But with pharma, we don’t we have to trust forwarders to give us a good as well as lower costs. The new Emirates SkyPharma facility was also presented, following LWVRIÀFLDORSHQLQJ7KHSXUSRVHEXLOW centre is dedicated solely to the transport of temperature-sensitive pharmaceutical shipments via Dubai International Airport – itself part of WKHZRUOG·VÀUVW*'3FHUWLÀHGPXOWL airport hub. Julian Sutch, manager for cargo global sales of pharma industry solutions at Emirates Airline, commented: “The hub is here, but what about the origin and desti- nation? We need to create GDP pharma corridors to ensure integrity throughout the cool chain.” FORWARD FOCUS On the second day, Gino Vleugels from Johnson & Johnson recounted his experience of setting up clinical trials of an Ebola vaccine in Sierra CARGO AIRPORTS AIRLINE SERVICES :LQWHU CCA PHARMA & BIOSCIENCES CONFERENCE REPORT service,” he pointed out. “Shippers value in- Still, Puetz feels more needs to be Solutions novation and excellence; we appreciate all done. “We need more alignment and Real-time tracking and the digitalisation of the efforts made to ensure our shipments transparency in the ‘controlled room many documents allow for the collection of are well looked after. For example, it used to temperature’ segment; shippers can’t an enormous amount of data these days. be shippers’ responsibility to package ship- pay general cargo prices and expect CRT But how well is that data being shared, ments, but now we can rely on forwarders service. There is a link between the value Winter wondered? Could it be used more and airlines to do it, which makes our life of a product and the affordability of the effectively? easier and more cost-effective.” logistics solutions offered.” Beydoun suggested: “Data can be Therese Puetz, CEO of Karavan Consult- There is also the challenge of modal given to authorities before arrival so they LQJÀQGVWKHFRQWLQXLQJODFNRIFRPPX shift, particularly when sea freight is in- can determine whether the cargo should nication between shippers and airlines novating too. Some lines are introducing be inspected or sent straight to the con- surprising – but Lester is keen to point active containers, for example, but Lester signee. Also, we could get the authorities out that this situation is improving, as feels there is a lack of understanding of engaged in our activities. In Dubai, the forwarders are understanding shippers’ GDP in the ocean freight sector. “Compli- Ministry of Health is now at the airport. needs better than ever before and airlines ance stands at 51-52% at best (at worst Customs is also right there in the cool are stepping up to provide the required it’s about 30%). Shipping lines have got centre facility. What about destination air- services. Those airports that offer top- policies in place but the handling process ports, though?” he asked. of-the-range services and facilities are is as for general cargo,” he observed. Either way, Puetz noted that today also playing their part, as their customers “So sea freight is less expensive than air tenders take the form of a ‘request for demand a similar level of investment and freight, but what’s going on in the back- solutions’, which requires more infor- innovation at other gateways. ground is less sophisticated.” mation regarding the service provider’s When it comes to shipping cargo, we take it further. Now serving over 450 cities worldwide through our interline and trucking partners, with 150 direct routes. NEW: Scheduled freighter service to and from Frankfurt, South America, Mexico, the US and Canada. aircanadacargo.com :LQWHU CARGO AIRPORTS AIRLINE SERVICES CCA PHARMA & BIOSCIENCES CONFERENCE REPORT TXDOLÀFDWLRQV DV ZHOO DV WHFKQLFDO GDWD start. Vleugels, meanwhile, recalled: “All That data helps customers to make a shippers in this sector care about people; more informed choice. that’s why we do what we do, so [the sup- A greater degree of transparency re- ply chain should] bear that in mind.” garding capabilities would be helpful, Linked to this is Puetz’s call for collabo- however– for instance, if there are no cool ration among all stakeholders – moving facilities at a destination airport, then dif- DZD\IURPÀQJHUSRLQWLQJWRDFRPPXQLW\ ferent packaging might be required. And approach where shared planning and pro- ZKHUHWKHÀQDOFXVWRPHURUSDWLHQWLVLQ cesses help to mitigate risk. a very remote location, it might be neces- It is the pharmaceutical manufacturer sary to think laterally in order to safeguard that bears the responsibility if medication the integrity of the product. is not up to scratch. Standard operating Summing up his view on the situation, procedures must be enacted and hando- Marcel Fujike, Kuehne + Nagel Winter said: “There is no silver bullet to vers in the supply chain managed seam- close the gap. There is no single point of lessly to avoid temperature excursions. responsibility when it comes to maintain- Investment in facilities and equipment, Leone. A fascinating insight into the practical effort involved to ing margins while maintaining product alignment of standards and processes, set up a depot and clinic, not to integrity. This sector is three-dimensional, VWDII WUDLQLQJ GDWD VKDULQJ FHUWLÀFDWLRQ mention the logistical aspect of transporting equipment, materials if not more-dimensional – it’s complex. all of these elements, implemented as and the vaccine itself to a chal- What should we as a community focus on part of a community approach in which all lenging location, this presentation demonstrated the very real human to get the best results in the medium to SDUWQHUVIXOÀOWKHLUUHVSRQVLELOLWLHVWRHDFK need that drives the cool chain long term?” he asked. other, can help to build trust among ship- and keeps this sector working to There are several answers to that ques- pers that the cool chain will take good care improve the services it provides. Bernhard Baertschi, head of sales tion. Winter suggests a focus on soft skills of these temperature-sensitive items. and marketing at SkyCell, highlighted alongside technical training to ensure Lester concluded, emphasising the the challenges posed by emerging the next generation of leaders is well need for openness, communication and markets in Africa and offered a solu- tion in the form of an active contain- equipped. For Beydoun, it is simply a mat- data sharing: “This is a relay race. If one er able to withstand the wide range ter of each member of the supply chain of us drops the baton the whole thing is of temperatures often experienced in those areas. living up to his or her responsibility. For pointless. We all have to live up to our re- Joachim von Winning, executive Haider, it comes down to consistency, with sponsibilities to the patient at the end of director of Air Cargo Commu- IATA’s CEIV programme being the place to the day.” QQQ nity Frankfurt, then discussed CEIV 3KDUPDFHUWLÀFDWLRQLQWKHFRQWH[WRI a community approach to the cool chain at Frankfurt Airport. Something to consider is how to interlink GDP, CEIV, and the Rx-360 audit pro- gramme, he suggested. The day closed with a working group session that saw lively, serious discussions on various topics – all DLPHGDWÀQGLQJSUDFWLFDODQG positive ways to take the industry forward. Raising quality, integrating the supply chain, meeting shippers’ expectations, solving problems peculiar to the Middle East (such as temperature excursions during KDQGOLQJ JHWWLQJFHUWLÀFDWLRQ programmes out to emerging mar- kets, dealing with modal shift and improving cooperation with external partners all featured in this session. The major outcomes were a focus on collaboration, standardisation and transparency, all driven by a patient-centric approach to the entire cool chain when it comes to Therese Puetz, Karavan Management Consulting pharmaceutical shipments. Q CARGO AIRPORTS AIRLINE SERVICES :LQWHU maskargo.com $'9(57,6,1*)($785( 4$7$5$,5:$<6&$5*2 4DWDU$LUZD\V&DUJR NHHSVFRRO Qatar Airways Cargo offers a unique refrigerated ramp transfer service at its hub in Doha, as part of the cargo carrier’s commitment to quality and service excellence to ensure temperature-sensitive goods under its care are transported seamlessly 24 CARGO AIRPORTS AIRLINE SERVICES :LQWHU n Doha, Qatar Airways Cargo offers “unbroken cool chain operations” for all temperature-sensitive shipments, QATAR AIRWAYS CARGO AT HIA which include seamless temperature-controlled handling QATAR AIRWAYS CARGO’S 55,000M2 TERMINAL BUILD- I and storage at the state-of-the-art Hamad International ING CURRENTLY HAS AN ANNUAL CARGO CAPACITY Airport (HIA) cargo terminal. Extensive climate-controlled OF 1.4 MILLION TONNES. ONCE THE CARRIER’S SECOND storage chambers and pods offer precision temperature man- CARGO TERMINAL IS OPENED, TOTAL CAPACITY WILL INCREASE TO 4.4 MILLION TONNES A YEAR. agement for different product needs. The self-contained HIA cargo terminal has 42 airside Quick Ramp Transfer (QRT) is another unique service offering loading docks, a separate aircraft parking apron with by Qatar Airways Cargo for tail-to-tail transfer of units between 11 widebody aircraft stands, a dedicated and special- FRQQHFWLQJÁLJKWV4DWDU$LUZD\V&DUJRLVWKHRQO\LQWHUQDWLRQDO ly equipped live animal centre, a dangerous goods air cargo carrier in the world to offer refrigerated or ‘reefer’ truck area and a perishables storage area; 31 landside WUXFNORDGLQJ IDFLOLWLHV JXDUDQWHH HIÀFLHQW WUDQVIHU RI services for ramp transfers at its hub, protecting cool chain prod- cargo in and out of Qatar. ucts from ramp exposure. The award-winning cargo carrier serves more than 50 dedicated freighter destinations around the world New facility via its Doha hub. Its overall cargo network comprises Investing in the future, Qatar Airways Cargo is developing an ad- more than 150 key destinations globally, including 68 vanced Climate Control Centre in response to growing global de- DSSURYHG SKDUPD VWDWLRQV 7KH FDUJR FDUULHU·V ÁHHW includes two B747, 11 B777 and eight A330 freighters. mand in specialised air freight solutions for temperature-sensitive products. The new 2,471m2 facility is expected to be commis- sioned in early 2017. The Climate Control Centre has two zones operating at 2-8°C or 15-25°C for 156 ULD storage positions. Six truck docks with blow-up curtains are installed to seal around the truck to ensure temperature integrity. Segregated sections will hold pharmaceu- ticals in compliance with GDP regulations. Key products Research, testing and production of health-care products, such as a CAPA team, unique QRT service using refrigerated and bespoke life-saving drugs, vaccines, biologicals, pharmaceutical raw materi- solutions to suit individual customer requirements. Qatar Airways als and medical devices makes the transportation of life science &DUJRSLRQHHUHGLQGXVWU\OHDGLQJ3KDUPD([SUHVVÁLJKWVLQ products among the most regulated in the world. Meticulous and to bridge the world’s major pharmaceutical trade lanes. uncompromising service standards are essential to ensure that Current Pharma Express routes are Basel–Doha, Mumbai– the integrity of time-and-temperature-sensitive pharmaceuticals is Ahmedabad–Doha and Hyderabad–Doha. These routes are consistently maintained. served by A330 freighter aircraft, offering 65-68 tonnes of capac- Qatar Airways Cargo’s hub at HIA operates in accordance with ity dedicated to QR Pharma customers. the highest pharmaceutical industry standards. Compliant with Launched on 1 January 2014, the cargo carrier’s QR Fresh good distribution practice (GDP), it offers quality assurance that solution complies with the International Air Transport Associa- shipments are consistently stored, transported and handled un- tion’s PCR Chapter 17 standards. QRT and temperature-con- GHUVXLWDEOHFRQGLWLRQVDVUHTXLUHGE\WKHSURGXFWVSHFLÀFDWLRQV trolled vehicles eliminate exposure on the ramp, closely man- The dedicated climate control hub operations team proactively aged by the dedicated climate control team. From Norwegian monitor temperature-sensitive shipments from end to end, to VDOPRQ WR $XVWUDOLDQ PHDW 8JDQGDQ ÁRZHUV WR $UJHQWLQHDQ ensure the cool chain process is seamless. berries, Thai asparagus to Pakistani mangoes, Kenyan beans QR Pharma offers both active (Envirotainer, CSafe, DoKaSch or Canadian lobsters, QR Fresh caters to wide range of perish- and va-Q-tec units) and passive temperature management (2- able products. Qatar’s royal ‘Moza’ rose, grown exclusively by 8°C and 15-25°C) solutions. Other customised features offered Roza Hassad at its farm in the desert, is carefully exported by by QR Pharma are dedicated product management and support, QR Fresh internationally. QQQ :LQWHU CARGO AIRPORTS AIRLINE SERVICES 25 Breaking down the barriers Shipper, forwarder, carrier, handler, airport, and trucking representatives debate what needs to CONFERENCE REPORT change to ensure air freight’s future success AIR CARGO HANDLING AIR CARGO HANDLING his year’s Air Cargo Han- huge risk in comparison to sea freight.” “If we become dling Conference, held at He said an estimated 57% of these partners, then we the JW Marriot Marquis excursions happen at handover points, become equals, T in Dubai, culminated in a the so-called ‘black holes’ in the supply much-anticipated panel dis- chain. “Things are improving, with col- and then there is cussion featuring industry heavyweights laboration getting better – for instance no fear. Fear is from across the air cargo community. at Brussels airport, which is taking a true 'XEEHG¶7KH0DJQLÀFHQW6HYHQ·UHS community approach,” he added. “We hurting us and we resentatives of shippers, forwarders, have to look at the whole transport pro- have to take it out carriers, handlers, airports, and trucking cess as a relay race. In pharma, if one ÀUPVGHEDWHGZKDWQHHGHGWRFKDQJHWR member of that relay team drops the ba- of the business” PDNHDLUFDUJRPRUHHIÀFLHQW ton, a patient could be at risk. We need to work as a team, not in the silos that David Ambridge Team spirit have been traditional until now.” Andrew Lester, global director healthcare For Jason Breakwell, commercial direc- at Expeditors said: “Temperature control is WRUDWURDGIHHGHUVHUYLFH 5)6 RSHUDWRU a horror story. The share of pharma moved Wallenborn Transports, that team spirit by air freight has fallen from 17% to 11% needs to extend beyond the airport. “I LQ WKH ODVW ÀYH \HDUV EHFDXVH FXVWRPHUV don’t expect to see an air cargo truck- are seeing 25-30% temperature excursion LQJFRQIHUHQFHEXW5)6GHVHUYHVPRUH rates with air freight – so it represents a recognition and appreciation,” he said. 26 CARGO AIRPORTS AIRLINE SERVICES :LQWHU AIR CARGO HANDLING CONFERENCE REPORT “It’s not a cost or a nuisance; it can add determines how services evolve to a much very well and very quickly when the regu- yield, and put more dots on the map for greater extent. lators tell us to, but not when we know it airlines, while helping them to manage +HQULN $PEDN 693 IRU FDUJR RSHUD- makes sense and it’s what our custom- their revenue.” WLRQV ZRUOGZLGH DW (PLUDWHV 6N\&DUJR ers want.” In fact, communication and community observed: “The requirements are chang- formed a thread that ran throughout the ing tremendously; the questions asked (IÀFLHQF\EHQHÀWV 2016 Air Cargo Handling Conference, with today were not asked 10 years ago – for The things that ‘make sense’ such as many speakers expressing a desire for instance, pharma is getting a lot more at- LQFUHDVLQJ HIÀFLHQF\ WKURXJK QHZ WHFK- the whole industry to come together more tention and effort. The industry is catch- nologies, improving safety and security, or in order to direct its own course. Youssef ing up with the changing environment – reducing temperature excursions for the Beydoun, head of cargo planning and and the regulators are helping us to do so. pharma shipments to which Ambak refers, compliance at Dubai Airports commented: “We act when we’re forced to do so; the XOWLPDWHO\ EHQHÀW WKH FXVWRPHU DV ZHOO DV “I would like to see us expand beyond our challenge is when we try to go forwards the service provider and its employees. own boundaries; we need to break down by ourselves. We’re good at doing things 6XFK FKDQJHV DUH SHUKDSV UHQGHUHG LQ- the barriers and work together so we can when we have to; but when we want to, it’s evitable by their necessity. How they are go back to the regulators with ideas.” KDUG WR ÀQG WKRVH ¶)DFHERRN PRPHQWV· effected, however, could be in the hands of Panelists noted that it does tend to be We have to be prepared to try lots of ideas the industry if stakeholders were to take the the regulators who drive change in how WRÀQGWKHRQHVWKDWZRUNµ initiative. air freight is handled and transported, David Ambridge, director cargo opera- Beydoun suggested: “We need to inno- much more so than is the case with the tions Asia and Africa at Worldwide Flight vate to keep up with the growth in volumes. passenger sector – where the customer 6HUYLFHVDJUHHGVXPPLQJXS ´:HUHDFW First, there are still security issues – the SMARTER ULD SOLUTIONS ULD Management and Supply the world’s largest independent ULD pool with a customer base of over 35 airlines ULD and Galley Cart Maintenance and Repair the largest global network with 50 certified repair stations at key airports CHEP Aerospace Solutions Head office Zurich: +41 43 255 4141 [email protected] chep.com/aerospace :LQWHU CARGO AIRPORTS AIRLINE SERVICES 27 AIR CARGO HANDLING CONFERENCE REPORT regulators and authorities need to be ok with the trusted shipper programme, and VRRQ6HFRQGZHQHHGWRLQYROYHRWKHU programmes such as regulated agents in WKH86DQGDSSO\WKHV\VWHPJOREDOO\:H need to get approval in every area with agreed standards and procedures.” Breakwell warned: “If we don’t do some- thing, the regulators will force it on us.” But it is not an impossible task. He cited TAPA, the Transported Asset Protection As- sociation, as an example of true industry- wide collaboration, bringing together the supply chain, insurance companies, and regulators. Conferences, such as this one, in his view, demonstrate that there is the power and inclination to change things. What is required is to “identify the prob- lem, come up with a solution and take it to the regulator – as TAPA has done successfully”. *DPHSODQ What, then, did the panellists feel was partnerships with airlines. We need to see member of the supply chain must remain necessary to ensure the future success of them as service partners. Also, relation- SURÀWDEOH ZLWKRXWSURÀWDELOLW\FRPSDQLHV the air freight industry as a whole? asked ships with forwarders are long overdue. would have to cut services or capacity, or moderator Chris Notter, vice president op- We are a fragmented industry; I hope the even cease to exist, and ultimately ship- HUDWLRQVDW6DXGLD&DUJR next generation and the one after will be- pers would suffer. Already, the double From an airport’s point of view, Beydoun come partners.” squeeze on handlers is hurting shippers, said there is a need to treat everyone he said, and it is not sustainable. Com- equally across the board to provide a fair 5HVSHFWIRUKDQGOHUV mercial considerations can lead to un- SOD\LQJÀHOG$LUSRUWVPXVWRIIHUWKHVDPH According to Lester, a collaborative ap- scrupulous or disloyal behaviour, creating opportunities and services to all users. SURDFKWRÀQGLQJVROXWLRQVIRUWKHFXVWRPHU fear and division among the industry. Breakwell reiterated his point regarding is necessary. “Handlers should not be the But Ambridge was optimistic. “If we be- the need to communicate across all seg- ‘whipping boy’, blamed for everything. We come partners, then we become equals, ments. “We need to listen, respect, and should bring the customer into the conver- and then there is no fear. Fear is hurt- understand. We have different expecta- sation and truly work as a relay team.” ing us and we have to take it out of the tions and needs and we need to under- All panellists agreed with Notter’s re- business.” stand each other,” he considered. TXHVW IRU MRLQW DFWLRQ IRU WKH EHQHÀW RI Only by doing so, by working together That willingness to listen and un- the industry over the coming 12 months, to improve as a team, can the industry derstand must be extended beyond based on the session’s discussion and and all its stakeholders hope to remain immediate relationships such as the the various suggestions that had been competitive in the long run, the panelists forwarder-airline, handler-airline or made. However, Lars Droog, supply chain agreed. As Ambak put it: “If we don’t re- shipper-forwarder contract, Ambak rec- and general affairs manager at Tosoh spond to what the customer wants today, ommended. Instead: “There needs to be Europe, was keen to point out that every we won’t be here tomorrow.” QQQ participation at industry level, not just di- rectly with our own partners. We need to “We need to listen, respect, and understand. We be willing to work for the community, not MXVWIRURXURZQEHQHÀWµ have different expectations and needs and we Ambridge responded: “As a ground need to understand each other” handler, we need true and meaningful Jason Breakwell 28 CARGO AIRPORTS AIRLINE SERVICES :LQWHU ADVERTISEMENT ATL : Focused On Growth he city of Atlanta — like few Hartsfield-Jackson’s innovative Air New direct routes to China and other Tcities in the world — displays Service Incentive Program (ASIP). destinations throughout Asia will help an unrivaled diversity of encourage direct investment and a people and culture, a spirit of ASIP is designed to stimulate inter- steady stream of business opportu- openness and hospitality, and a national air cargo and passenger nities both in the Atlanta region and true international character. growth, particularly along routes the targeted destinations in Asia. that link Atlanta to the world’s Atlanta is a proven leader in economic fastest-growing economies. In this 21st century, international and business development. We are visitors choose to vacation, and foreign home to a thriving, global business The incentive program waives landing corporations choose U.S. cities in which community, and we are the leading fees for up to two years for qualified to invest. Often, those choices hinge global city in the Southeast U.S. passenger airlines starting international on locations where nonstop flights routes not already served from Atlanta provide fast and convenient air links. Atlanta’s No. 1 economic devel- and matches up to one-half of promo- opment tool is Hartsfield-Jackson tional costs, capped at $50,000. Inter- In the area of cargo service devel- Atlanta International Airport national cargo service carriers benefit opment, increasing ATL cargo (ATL). ATL supports more than from a waiver of both landing and operations remains a top priority, 400,000 jobs in metro Atlanta and parking fees during the same periods. with the goal to jump from 10th makes a direct regional economic place to a place among the top five impact of more than $65 billion. The highest tier benefits are available U.S. airports for cargo volume. to carriers starting service to In 2015, ATL topped 101 million major economies with the greatest passengers. Each week, ATL potential for passenger and cargo accommodates nearly 8,500 depar- growth, namely Brazil, Russia, tures to about 175 domestic and India, China, South Africa, Latin 70 international destinations. America and the Caribbean. Elliott Paige Director Air Service The Airport is preparing for the future China is among ATL’s top five Development with a renewed commitment to growth cargo destinations, and Asia overall [email protected] in passenger air service, cargo devel- contributes nearly half of ATL’s total +1 (404) 382-2334 opment and supportive infrastructure. 2015 freighter cargo volume of more than 626,000 metric tons. Going A key ingredient in the Airport’s forward, continued growth is expected passenger and cargo air in cargo volume originating from China. service development plans is © City of Atlanta AIR CARGO HANDLING CONFERENCE REPORT BUDAPEST YOUR MUST ATTEND EVENT FOR 2017 19TH - 21ST SEPTEMBER 2017 You can view a full gallery of images from the event at www.achconference.com Call to action Make changes now, before they are forced upon you, Air Cargo Handling Conference delegates are told. Megan Ramsay reports he theme of the 2016 Air for ‘less talk, more action’ at last year’s con- Cargo Handling Conference ference. Ambridge summed up: “Air cargo in Dubai was ‘Back 2 Basics, must transform itself to become a lean, T Return 2 Reason’, the aim adaptive and innovative industry centred being to identify those funda- around increasingly sophisticated customer mental action points required to move the demands.” sector forward. Michael Woodall, assistant director for A review of activities from IATA’s Cargo security consulting and capacity develop- Handling Council over the past 12 months PHQW DW ,$7$ DQG %6,·V &RXUWQH\ )RVWHU IURP %UHQGDQ 6XOOLYDQ KHDG RI FDUJR RS supply chain solutions manager EMEA, HUDWLRQVDW,$7$ $QGUH0DMHUHV FDUJRDQG gave engaging presentations on risk PDLORSHUDWLRQVDQGVWDQGDUGVDW,$7$ DQG management. As Woodall put it: “You can David Ambridge (director cargo operations subcontract the job of risk assessment, ²$VLDDQG$IULFDDW:RUOGZLGH)OLJKW6HUYLF but you have to own it yourself. You can’t HV ORRNHGDWGHYHORSPHQWVLQ,6$*2WUDLQ VXEFRQWUDFW \RXU UHSXWDWLRQ \RXU SURÀW LQJ6/$VDQGWKHFDUJRKDQGOLQJPDQXDO ability – or the safety of your staff and outlining the committee’s response to a call passengers.” Foster suggested that using CARGO AIRPORTS AIRLINE SERVICES :LQWHU AIR CARGO HANDLING CONFERENCE REPORT ,6$*2DXGLWVDVDEDVHOLQHZRXOGOHDGWR the establishment of a global standard and reduce audit fatigue. ,QGHSHQGHQW LQGXVWU\ DGYLVRU 'HV 9HU tannes urged delegates to take ownership of change and be proactive: “Make those changes before they’re forced on you.” ¶7VXQDPL·RIRYHUFDSDFLW\ Dr Wouter Dewulf, professor at the Univer- sity of Antwerp’s Centre for Maritime & Air 7UDQVSRUW 0DQDJHPHQW &0$7 FRQVLG ered how consolidation could bring greater AIRPORTS: LANDLORDS OR PARTNERS? integration and standardisation to a supply chain facing a “tsunami” of overcapacity. 3HRSOHVHHDLUSRUWVDVODQGORUGVZKRMXVWWDNHWKHPRQH\ZLWKRXWLQYHVWLQJVD\V %UXVVHOV$LUSRUW·VKHDGRIFDUJR6WHYHQ3ROPDQV:KLOHGLVSXWLQJWKLVYLHZKH +H VDLG DLU IUHLJKW VWDQGV WR EHQHÀWIURP FRQFHGHVWKDWWKHUHLVURRPWRLPSURYH emerging economies like Mexico, East Af- “We know how to manage an airport, but we don’t necessarily understand cargo or logistics,” he says, generalizing about wider perceptions of airports. “We ULFDDQG6RXWKHDVW$VLDDVWKH\FRQWLQXHWR don’t make money on cargo, but on passengers, which is why most – if not all – develop in the coming years. But with the DOOFDUJRDLUSRUWVDUHQRWSURÀWDEOH2XUVKDUHKROGHUVH[SHFWXVWRPDNHPRQH\ integrators – and Amazon – grabbing mar- If we are not, then why do we do it?” ket share and putting pressure on prices, The answer to that question is twofold, he says. First, government-owned gate- ways contribute to regional economic development. Second, cargo can be DLUIUHLJKWPXVWFRQWLQXDOO\ÀQGZD\VWRDGG ´WKHFKHUU\RQWKHFDNHµIRUDSDVVHQJHUDLUSRUWSRWHQWLDOO\DGGLQJWRLWVSURÀWVµ value for its customers. Polmans contends. Mauro Anastasi, partner at Bain & Com- He feels that airports are, in fact, investing more in cargo now than in the past. They are looking at it more from a logistical point of view, and with passenger pany EMEA, offered a view on how the air airlines placing more attention on belly cargo, there is increasing pressure on freight industry could move forward through airports to accommodate the sector. the enforcement of global quality stand- $QGWKLVLVQRWZLWKRXWLWVGLIÀFXOWLHV$LUSRUWVKDYHWRIXQFWLRQDVQHXWUDOIDFLOLWD tors while not truly being part of the logistical process, he notes. They have to ards and a “quantum leap” in automation manage the various interests of different stakeholders, all of which are trying that could enhance safety and security. to protect their own position. Government and regulatory frameworks can be strict. Finally, shareholders tend to be risk averse at best, demanding guaranteed He suggested learning lessons from other revenue year after year. industries in order to evolve – for instance, So, what can an airport do to make itself more than just a landlord to its cargo working with the regulators to balance prof- community? First and foremost, it should be a partner. “We should talk, listen, support and help our customers,” Polmans sums up. “We need to work with the itability with fair pricing, as is happening in logistical chain and recognise that the world does not end at our fence – rather, it begins there, and we should be talking to the shippers, too. “We should use our power to lobby on behalf of companies and bring all the parties together; to create leverage for investment and innovation; and to take WKHOHDGLQFUHDWLQJDVWURQJFRPPXQLW\WKDWLVEHQHÀFLDOIRUDOOFRPSDQLHV involved. We need to manage cargo as a marketplace, not as an airport” – the idea being to make the whole air freight set-up more competitive. “Finally, perhaps we should simply get out of the way,” he suggests, noting that E\UHGXFLQJFRPSOH[LW\DQGIDFLOLWDWLQJSURFHVVHVDQDLUSRUWFDQPDNHOLIHHDVLHU for those who use it. 2QHSUDFWLFDOVROXWLRQWKDW3ROPDQVVD\V%UXVVHOVLVFRQVLGHULQJLVWRFUHDWHD centralised structure for GSE at the airport. “With simple investments, we can help KDQGOHUVWREHPRUHHIÀFLHQWµKHQRWHV Any meaningful progress does, however, require buy-in and commitment from all stakeholders, not just airports – particularly where innovation is concerned. Polmans notes that implementation of new procedures and technologies is often the biggest challenge, as change often meets with resistance. “Will we ever be able to offer one integrated, high-quality supply chain?” he asks. In order to achieve this objective, standardisation of the industry at a global level is more vital than ever. He recommends a collaborative approach whereby groups would work together to improve quality. “Some airports are doing a good job. Those that have problems, we need to get them involved. We need to cre- ate communities, get those airports to join – and enforce standards and regula- tions,” Polmans adds. Q 32 CARGO AIRPORTS AIRLINE SERVICES :LQWHU Join the world’s first lean & green airline Let us freshen you up Moving your perishable goods around the world at the perfect temperature from pick-up to final destination requires sophisticated equipment and highly trained, professional teams. Once ready for shipping, perishables need to be transported without any delay! Let us freshen you up! www.cargolux.com | [email protected] | member of Cargolux Group AIR CARGO HANDLING CONFERENCE REPORT the EU with regard to electricity generation companies. $LUSRUWVKDQGOHUVFDUULHUV« Next were a series of presentations consid- ering the role of various stakeholders and how they could better serve each other. 6WHYHQ3ROPDQVKHDGRIFDUJRDW%UXVVHOV Airport, commented: “We want to be more than just a landlord – we want to be a part- ner … and work with the logistical chain.” )URP D KDQGOHU·V SRLQW RI YLHZ /8* $LU cargo Handling managing director and CEO Patrik Tschirch said: “The key is that we need a single process, not many individual H[SHFWDWLRQV IURPDLUOLQHV µ And Jussi Mattila, manager global ground handling at Cargolux Airlines, said that train- ing was essential and that “customer satis- faction should be the driver in all levels of an organisation” – wherever it sits along the supply chain. The afternoon closed with a shipper’s perspective, in which Lars Droog, supply chain manager and general affairs man- ager at Tosoh Europe, asked if learning from the integrators might help “future-proof” the HANDLERS: UNDER PRESSURE air cargo industry. *URXQGKDQGOHUVIHHOWKHSUHVVXUHIURPERWKVLGHV²IURPWKHLUFXVWRPHUV WKH DLUOLQHV ZKRZDQWWRSD\OHVVEXWH[SHFWDQHYHUKLJKHUTXDOLW\RIVHUYLFHDQG IURPWKHLUVXSSOLHUV WKHDLUSRUWV ZKRZLOOQRWRUFDQQRWORZHUWKHLUSULFHVRU %HEUDYHEHEROG LQYHVWHQRXJKLQWKHLULQIUDVWUXFWXUHGHOHJDWHVKHDUG Opening day two, Bob Rogers, vice presi- Handlers’ ability to provide the services required of them is affected by numer- dent of ULD Care, looked at what it means ous factors, and there are ways in which both airports and carriers could make their job much easier, according to Patrik Tschirch from LUG Aircargo Handling. to handle ULDs responsibly. “The number ´&DUJRKDQGOLQJDJHQWVH[LVWWRLQFUHDVHHIÀFLHQF\DQGVSHHGZKLOHUHGXF ing cost, for everyone. We have been trying to be everyone’s darling, but the FRPSOH[LW\RIRXUMREZKLFKLVGULYHQE\WKHYDU\LQJGHPDQGVRIWKHDLUOLQHVZH serve, is unsustainable. This model will not work for much longer,” he warns. In Tschirch’s view, airports ought to provide a “working and meaningful infrastructure – both physical and digital, that is, relating to data and commu- nications” to support handlers. A single data pool covering the whole supply chain, from the shipper to the ramp to the aircraft to the consignee, would be a VLJQLÀFDQWVWHSIRUZDUGLQWKLVUHJDUGKHIHHOV(TXDOO\LPSRUWDQWLQKLVYLHZLVWKH role of the airport in creating a local cargo community, bringing all stakeholders together to work together on initiatives that will improve the whole industry in the long run. Carriers, meanwhile, need to develop their awareness of the handler’s role, FDSDELOLWLHVDQGOLPLWDWLRQVVRWKDWWKH\FDQÀQGEHWWHUZD\VRIZRUNLQJWRJHWKHU that will serve the end customer well at the end of the day. “We are your face to the customer, yet we are left out of discussions and decisions,” he told delegates. “We need clear, measurable processes, independent validation and meaning- ful audits, as well as transparency. The key is that we need to have a single pro- FHVVQRWLQGLYLGXDOH[SHFWDWLRQVIURPHDFKDLUOLQH WKHLQWHJUDWRUVDUHVXFFHVVIXO because they present one face to the customer,” he points out. 3HUKDSVWKHPRVWVLJQLÀFDQWFKDOOHQJHKRZHYHULVWKDWWKHDLUIUHLJKWLQGXVWU\ as a whole – and handlers in particular – are too slow to adapt to the fast-chang- LQJZRUOGWKH\VHUYH,IWKDWLVQRWUHVROYHGWKHQKDQGOHUVFRXOGÀQGWKHPVHOYHV becoming obsolete, Tschirch warns. Q 34 CARGO AIRPORTS AIRLINE SERVICES :LQWHU A dedicated fleet delivering on-time express service. Our Fleet On every front—and for over 20 years—Atlas Air has been an undisputed leader in outsourced aircraft and aviation operating services. Our customers benefit from our global reach, value-added solutions, Boeing 747-400 Freighter comprehensive infrastructure, superior assets and high service quality. We operate the world’s largest fleet of 747 freighter aircraft and offer the broadest array of 747, 777, 767, 757, and 737 aircraft for domestic, regional, and international applications. Boeing 777 Freighter Through an innovative approach that tailors our products to our customers’ needs and requirements, we achieve best-in-class results—through our ACMI, CMI, Commercial Charter (cargo and passenger) and Dry Leasing solutions— serving both time-definite express and general network operations. Boeing 767 Freighter Atlas Air Worldwide delivers value. Every day of the year. In every trade lane of the world. What can we do to help you? Boeing 737-300 Freighter Visit us at www.atlasair.com and www.titanaviationltd.com [email protected] | +1.914.701.8000 AIR CARGO HANDLING CONFERENCE REPORT AIRLINES: WHAT DOES ‘GOOD’ LOOK LIKE? 3HRSOHSURFHVVPDQDJHPHQWDQGHTXLSPHQWPXVWDOOFRPELQHWRGHOLYHUWKHNLQGRIH[FHOOHQWFXVWRPHUVHUYLFHDLUOLQHV YDOXHLQWKHLUFDUJRKDQGOHUVVD\V-XVVL0DWWLODRI&DUJROX[$LUOLQHV 2QWKHVXEMHFWRIZKDWFDUJRKDQGOHUVVKRXOGEHGRLQJGLIIHUHQWO\IURPD FDUULHU·VSHUVSHFWLYHKHEHJDQZLWKDVHULHVRITXHVWLRQV ´:KDWVKRXOGKDQGOHUV do differently? Well, who am I to judge? Instead, I want to ask, what does ‘good’ look like? What capabilities do we, as airlines, value in our cargo handlers?” From this positive starting point, Mattila highlighted four key areas of impor- WDQFH SHRSOHZKRPXVWEHSURSHUO\WUDLQHGJLYHQDFOHDUO\GHÀQHGVHWRI duties and encouraged to take an unprompted, proactive attitude towards their work; process, whereby the cargo terminal is compared to a factory that PXVWRSHUDWHHIÀFLHQWO\ PDQDJHPHQWZKLFKPXVWZRUNFRQVWDQWO\WRZDUGV FRQWLQXRXVLPSURYHPHQW DQGHTXLSPHQWZKLFKPXVWEHÀWIRUSXUSRVH$OORI WKHVHIDFWRUVFRPELQHWRGHOLYHUH[FHOOHQWFXVWRPHUVHUYLFH )RUHPSOR\HHVRIFDUJRKDQGOLQJFRPSDQLHVKHVDLG ´)LUVWRIDOOWUDLQLQJLVRI WKHHVVHQFH6HFRQGWKHUHPXVWEHDUHDVRQIRUH[LVWHQFH²WKDWLVWKHUHQHHGV to be logic to duties and procedures so that people understand why they have to act in a certain way. And third, we need to ensure they are working in a just and fair culture.” In other words, encouraging employees to report accidents DQGXVHPLVWDNHVDVOHDUQLQJH[SHULHQFHVUDWKHUWKDQVHHLQJWKHPDVDVRXUFHRI fear or blame. In terms of processes, Mattila highlighted the importance of key performance indicators with the pithy phrase, “we cannot manage if we don’t measure”. It is only by knowing the objectives of a task that an accurate evaluation of success can be made, leading to improvement. Handling staff also need to know their SURFHVVHVDQGEHLQFRQWURODQGXVHGDWDWRLQIRUPDQGEHQHÀWWKHLURSHUDWLRQV – and thereby their customers. A systematic approach to continuous improvement among management staff is vital, he went on, outlining a cycle of SODQQLQJGRLQJFKHFNLQJDQGDFWLQJEHIRUHWKHQH[WSODQQLQJSKDVHEHJLQVDJDLQ+HDGGHG ´(TXLSPHQWLVLPSRUWDQW but state-of-the-art equipment is not always necessary. It’s okay to use older or simpler equipment if it meets the needs of the job.” $ERYHDOOFXVWRPHUVDWLVIDFWLRQ´VKRXOGEHWKHGULYHULQDOOOHYHOVRIWKHRUJDQLVDWLRQµKHH[SODLQHG$IDVWUHVSRQVHWR FXVWRPHUVLVHVVHQWLDO²DVLVHIÀFLHQF\LQIROORZLQJXSRQDQ\PLVWDNHVWKDWPD\KDSSHQ And sharing information regarding operations and capabilities at a given station is another area that Mattila believes distinguishes a good cargo handler from one that still has some way to go in satisfying the needs of the airlines that de- pend on it. Q “Equipment is important, but state-of-the-art equipment is not always necessary” of ULDs has increased enormously and air- ports need to help,” he said, regarding the FKDOOHQJHRIÀQGLQJVXLWDEOHZD\VWRPDQ age these units on the ground. There followed a discussion on how to de- velop smart communities. Nanne Onland, CEO of Cargonaut, said: “By connecting the dots through digital infrastructure, we can HQDEOHDEHWWHUÁRZRIORJLVWLFVµ7KHVORZ pace of adoption of new technologies in air freight was highlighted as an obstacle by 7RQ\6KDP&(2RI*OREDO/RJLVWLFV6\VWHP +RQJ.RQJZKLOH9LQHHW0DOKRWUDGLUHFWRU RI.DOH/RJLVWLFV6ROXWLRQVSRLQWHGRXWWKDW emerging markets with smaller operations ZHUHPRUHGLIÀFXOWWRLQWHJUDWHLQWRDJOREDO ly connected digital logistics infrastructure. $FFRUGLQJ WR 6WHYHQ 3ROPDQV LW ZRXOG make better sense to start with big ideas 36 CARGO AIRPORTS AIRLINE SERVICES :LQWHU AIR CARGO HANDLING CONFERENCE REPORT PANEL: WORKING GROUP OUTCOMES DQG ZRUN WRZDUGV WKH ÀQHU GHWDLO UDWKHU than try to implement solutions from the 7KH$LU&DUJR+DQGOLQJ&RQIHUHQFHZRUNLQJJURXSVHVVLRQVORRNHGDWÀYHIRFXV ERWWRPXS$QG'DYLG$PEULGJHIURP:)6 DUHDV*URXSOHDGHUVVXPPDULVHGWKHUHVXOWV said a reduction in protectionism – more sharing of data – would help make the air ULDS: EVERYTHING YOU NEED TO KNOW BUT ARE AFRAID TO ASK ULD Care vice president Bob Rogers reported that a ULD Code of Conduct is freight community more competitive. being created – a voluntary, free-of-charge scheme with the aim of ensuring the Malhotra highlighted new technologies SURYLVLRQRI8/'VWKDWDUHÀWIRUSXUSRVHDVZHOODVLQVWUXFWLRQVDQGJXLGDQFHIRU WKHLUVDIHDQGHIÀFLHQWRSHUDWLRQ6RPHUHÀQHPHQWRIWKHFRQWHQWLVVWLOOUHTXLUHG WKDWFRXOGOHDGWRHIÀFLHQF\JDLQVVXFKDV before the code can be published and promoted. the use of delivery drones, Bluetooth-based SAFETY, DANGEROUS GOODS AND SECURITY, smart sensor networks in warehouses, CUSTOMS AND TRADE FACILITATION applications for the Internet of Things, -XVVL0DWWLODPDQDJHUJOREDOJURXQGKDQGLQJDW&DUJROX[$LUOLQHVH[SUHVVHG a wish for an international risk register. He sees robust audits and an enhanced self-service cargo kiosks along the lines of approach to SMS as other ways to improve risk mitigation. Barriers to progress passenger services to cut time spent on LQFOXGHYDULDQFHDFURVVGLIIHUHQWFRXQWULHVDQGUHJLRQVDQGWKHGLIÀFXOW\LQ documentation, and a true ‘single window’ ÀQGLQJWLPHIRUWUDLQLQJ+RZHYHUWDNLQJDFWLRQ VXFKDVHQIRUFLQJ,$7$VWDQG- DUGV ZRXOGRIIHUEHQHÀWVE\EULQJLQJJOREDORSHUDWLRQVXSWRDXQLIRUPO\KLJK approach. standard, he said. E-CARGO, TECHNOLOGY AND QUALITY 7UDLQLQJSURJUDPPHV 7KHVHWRSLFVDUH´QRWMXVWDERXWWLFNLQJER[HVDWWKHODVWPLQXWHWRVDWLVI\DXGLWVµ reminded independent speaker Pichuiyer Balasubramanian. “Are we victims of 6SHDNHUV DOVR VWUHVVHG WKH LPSRUWDQFH RI ORSVLGHGGHYHORSPHQWDQGSURJUHVV"µKHDVNHGJLYLQJWKHH[DPSOHRIVWDWHRI quality training programmes for staff devel- the-art warehouse systems at some airports in comparison to the typewritten air opment – and retention. Kim Winter, global ZD\ELOOVWKDWVWLOOH[LVWLQFHUWDLQSDUWVRIWKHZRUOG´:HQHHGWREULQJWKHODJJDUGV up to the minimum speed. We are responsible for making it work. IATA’s involve- &(2DW/RJLVWLFV([HFXWLYH*URXSUHLWHUDWHG ment is important. We have to take the bull by the horns,” he concluded. the need to teach soft skills as well as tech- INDUSTRY MANAGEMENT, INCLUDING OPTIMISATION, nical knowledge. Alan White, vice president SUSTAINABILITY AND COLLABORATION of ground operations Middle East at Nation- Mike Duggan, director for cargo charters and strategic partnerships at Saudia &DUJRÀUVWVXPPHGXSWKHLVVXHVFXUUHQWO\IDFLQJWKHLQGXVWU\,QYHVWPHQWLQ,7 al Air Cargo, expressed a concern that “we harmonisation, people and training were all touched upon. Consolidation of are in dire need of attracting and nurturing handlers was seen to be a potentially helpful force in achieving greater stand- ardisation, although airlines were concerned about the possibility of monopolistic young talent, regardless of gender”, and handlers; the handlers participating in this working group did not share that that current recruitment strategies were fail- concern in relation to airline consolidation, however. ing to present what the industry can offer to MODERNISING AIR CARGO such individuals. Numerous points relating to the modernisation of air cargo were outlined by Becon Projects managing director Uwe Beck. Cargo processing, automation According to Christian Bergfelder, director and systems; data management, transparency, coverage, interpretation and network airside Europe at DHL, said train- application; new technology and standards; and interaction with shippers were among the most important areas requiring improvement. In addition, “We should ing in the dangerous goods sphere appears look to other industries for ideas; initiate a working group on standards relating to to be of a better standard due to greater QHZWHFKQRORJ\LQWKHLQGXVWU\ WKDW,$7$FRXOGSHUKDSVOHDG DQGDLPWRKDYH RIGHOHJDWHVIURPVKLSSHUVDWQH[W\HDU·VFRQIHUHQFHµ%HFNVDLG)LQDOO\ UHJXODWLRQ $QG ,$7$·V %UHQGDQ 6XOOLYDQ “We need to stop blaming each other and just get on with it here and now – and observed that “just about everybody has a remember, you don’t get quality and improvement for free.” Q responsibility” for training. The need for collaboration – working to- gether towards a common goal as service partners – emerged as a key theme in the conference, and panelists agreed to do just WKDW ZRUNWRJHWKHUIRUWKHEHQHÀWRIWKHLQ- dustry, with results to be presented at next year’s conference. :RUNLQJJURXSV Working group leaders also reported back to the wider gathering to present the out- comes from Tuesday’s sessions. The crea- tion of a voluntary ULD code of conduct, approaches to risk mitigation, raising the 38 CARGO AIRPORTS AIRLINE SERVICES :LQWHU AIR CARGO HANDLING CONFERENCE REPORT minimum standard of technological devel- opment across the industry, the impact of consolidation, and suggestions for ways to modernise air cargo, all came up. 6XPPLQJ XS WKH FRQIHUHQFH 9HUWDQQHV urged delegates to work alongside indus- try leaders to share the burden of working to improve the industry, as well as calling for the establishment of more community spirit, the implementation of developed so- OXWLRQVDQGWKHDSSURYDORI,6$*2E\VWDWH bodies and ICAO. “The issue is, do we get dragged towards evolving or do we steer our own evolution?” he asked. Conference chairman Chris Notter ech- RHG 9HUWDQQHV· FDOO WR DFWLRQ DQG HPSKD- sised the need for a team effort – now. “Be brave, be bold, before all of us are too old,” he declared. QQQ INTRODUCING A NEW SENSE OF FLYING Gadgets, clothes, pharma, seafood — and still room for 297 passengers. The new Finnair Airbus A350 flies to/from Bangkok, Beijing, Hong Kong, Seoul, Shanghai and Singapore. Read more at finnaircargo.com :LQWHU CARGO AIRPORTS AIRLINE SERVICES 39 Automation and robotics will transform traditional manufacturing and warehousing practices in ways that ZLOOIXQGDPHQWDOO\DOWHUIUHLJKWÁRZVUHSRUWVMike King Transformational technologies AUTOMATION ricewaterhouseCoopers consumer requirements, they also re- redundant, there is less need to move (PwC) recently concluded duce transport demand, with long-haul products around to produce it some- that huge volumes of air air and ocean movements typically from where else cheaper. This could make it LOGISTICS TRENDS: LOGISTICS TRENDS: P and ocean business could Asia to Europe and North America the possible to produce closer to the con- be at risk as mass 3-D most likely to be impacted. sumer markets.” printing is introduced into production Sebastiaan Scholte, CEO of Jan de A leading ocean forwarding executive processes, in a study reported on in the Rijk Logistics and a member of the board at a major integrator says that for large Autumn 2016 issue of CAAS. But some RI DGYLVHUV DW FORXG DSSOLFDWLRQV ÀUP 3PLs, new technology such as robotics believe the automation of factories, sup- Lanetix, says the introduction of robot- offers opportunities for complex solu- ply chains and distribution channels ics and automation technologies into tions provision. However, forwarders offers an even bigger challenge to tradi- manufacturing processes had potentially and logistics companies with smaller WLRQDO(DVW:HVWWUDGHÁRZV negative consequences for trade, and footprints that were more reliant on The reasoning is simple: as technology for companies that rely on it including end-to-end transport could be adversely reduces the need for cheap – often Asian IRUZDUGHUV´6RPHRIWKHWUDGHÁRZVFXU affected by slower or negative volume – labour, this enables manufacturers to rently exist because of labour intensive growth on major trades. locate production nearer consumer mar- products being produced in cheap labour “We’ve been studying how technol- kets. And while shorter supply chains countries” he notes. “China’s labour cost ogy such as automation will be imple- can reap vast cost savings and improve is increasing but, since robotics and au- mented by our customers, and we expect the responsiveness of manufacturers to tomation is making some of the labour to see some production move closer to 40 CARGO AIRPORTS AIRLINE SERVICES :LQWHU Handled in good company. From arrival until departure, each consignment of perishables is safely handled and supervised by an experienced and dedicated team. Quality first. • 500 sqm of refrigerators available with flexible temperature settings. • Vacuum cooler for flower refreshment. • Specialized meat handling terminal. • Phytosanitary and Health-Authority check available 24 /7. • Experienced in-house customs clearance team. • Fast track for PER with very short transit times from aircraft arrival to truck departure. Please call +352 2456 6001 or visit www.luxaircargo.lu for more information. CARGO LOGISTICS TRENDS: AUTOMATION consumer markets in the West, which will those blue-collar positions can be dragged QHZ MREV UHVHDUFK ÀUP *DUWQHU KDV SUH- limit ocean and air volume growth, for back,” he says. “This is about automation dicted robots will take over a third of all VXUHµKHVD\V´,FRXOGQ·WSXWDÀJXUHRQ and robotisation. Some studies predict 86MREVE\´*DUWQHUSUHGLFWVRQHLQ it, but if you also look at 3D printing then that 40% of jobs will disappear in the fu- three jobs will be converted to software, the cumulative effect will be a change in ture. This is across the board, everything robots and smart machines by 2025,” WUDGH ÁRZV DQG WKH GHPDQGV PDGH RI from assembly lines, to drivers being dis- VD\V*DUWQHUUHVHDUFKGLUHFWRU3HWHU6RQ- solutions providers. How that plays out placed by driverless cars, to warehousing dergaard. “New digital businesses require will depend on which companies can fol- and admininstration. Lots of these jobs will less labour; machines will make sense of low their customers up the logistics value go in future.” data faster than humans can.” FKDLQE\XVLQJWHFKQRORJ\WRÀQGVROXWLRQV Indeed, according to leading experts, the Roland Berger, a global strategy-consult- But for sure, we could see slower demand productivity gains offered by the latest au- LQJÀUPKHDGTXDUWHUHGLQ0XQLFKUHFHQWO\ on trunk routes, certainly on the front haul. tomation systems not only threaten trade conducted a study that found that the He continues: “Of course, there are also patterns, but also the viability of low-skilled robotisation of logistics would lead to the implications for shipping lines as well. In logistics and warehousing jobs in Europe disappearance of 1.5 million jobs in the percentage terms it wouldn’t take much and the US, and the ability of developing Eurozone in the next ten years. in the way of a drop in demand due to the countries to rapidly boost economic perfor- Roland Berger’s study noted that the migration of manufacturing out of Asia to mance through industrialisation and mass return on investment of logistics automa- hurt anyone with a presence on ex-Asia employment. tion solutions would soon drop below three trades, be they a shipping line, a forwarder In a widely noted study published in \HDUV WKDQNV WR ÁH[LEOH DQG FROODERUDWLYH or whoever.” 2013, Carl Benedikt Frey and Michael Os- robotic solutions. These new solutions, borne examined the probability of comput- which are now helping human operators Logistics jobs erisation for 702 occupations and found and machines to work side by side in the Scholte makes the point that the protec- that 47% of workers in America had jobs same warehouse without the need for any tionist arguments about “bringing US jobs at high risk of potential automation. In major transformation, are causing com- and companies back home” made by both particular, they warned that most workers panies to rethink the way work has been US Presidential candidates had missed the in transport and logistics “are likely to be organized over the last few decades. point. “It’s not simply the case that Ameri- substituted by computer capital”. “Robotic logistics solutions have de- can jobs have been moved abroad and Although new technologies also create veloped at great pace since the giants of CARGO AIRPORTS AIRLINE SERVICES :LQWHU Maximum Security Transports for HIGH VALUE CARGO Under control of a single 24/7 monitoring tower, our brand new fleet offers the most reliable connections in Southern Europe for your high valued cargo. All of our 130 trucks are equipped with the most advanced security systems - and 35 of them have already obtained TAPA TSR Certification. Alha is currently the only provider in EMEA holding the 3 TAPA Certifications: TACSS + FSR + TSR GPS Control Anti-jamming systems Live Route Monitoring Advanced Physical Security Dedicated SOPs CCTV on board Geofencing Panic button Live Feedback Route Deviation Alarm LOGISTICS TRENDS: AUTOMATION the internet made them the spearheads ÀUHGUDSLGHFRQRPLFJURZWK&KLQDIROORZHG of their expansion plans,” says Mehdi El South Korea and Japan in using its cheap Alami, principal at Roland Berger. “The labour to boost economic development, and cost reductions and the maturity of the so- countries across Asia would like to replicate lutions are such that we are now approach- China’s journey from low to middle income ing a tipping point before the widespread status by encouraging manufacturing. presence of robots in warehouses.” For most, that means grabbing a piece According to research by Roland Berger, of the global manufacturing pie by open- the cost threshold at which robotic solutions ing up labour markets. But not only may “The cost reductions become viable in most of Western Europe is some manufacturing jobs be ‘going home’ DQGWKHPDWXULW\ now between €100,000 and €110,000 per to take advantage of increased productiv- unit. As such, the total hourly cost of a robot ity as a result of new technologies, many RIWKHVROXWLRQVDUH is around €18 to €20 per hour when the are already automating production lines such that we are now average cost of a human operator is €14 to in Asia even in places such as India and DSSURDFKLQJDWLSSLQJ €15 per hour in the Eurozone. Indonesia where under-employed young “In the long run, the increase in produc- workers are many and cheap. SRLQWEHIRUHWKH tivity, the lengthening of the lifespan of ro- 44 CARGO AIRPORTS AIRLINE SERVICES :LQWHU REGISTRATION NOW OPEN! The Preparing for Tomorrow’s Reality. 27th Annual CNS Partnership Conference is the year’s premier cargo event. Its purpose is to keep members and participants up-to-date on the latest developments in air cargo through its conference and break-out sessions. Each year our conference brings together over 600 air cargo decision making professionals from the U.S. and around the world, including executives from airlines, freight forwarders, and shippers. Your presence makes the conference a success. We look forward to seeing you at the 2017 CNS Partnership Conference in Orlando, Florida. For more information or to register, visit: WWW.CNSC.NET LOGISTICS TRENDS: AUTOMATION obsolete is a race against time. Wolfgang Lehmacher, head of supply FILLING LABOUR GAPS chain and transport industries at the World 7KHLQWURGXFWLRQRIQHZURERWLFVWHFKQRORJLHVZLOOÀOOJDSVLQODERXUPDUNHWV UDWKHUWKDQUHSODFHZRUNHUVEULQJLQJKXJHJDLQVWRFRPSDQLHVUHO\LQJRQ Economic Forum, says the use of robotics ZDUHKRXVLQJVROXWLRQVWRNHHSVXSSO\FKDLQVPRYLQJVPRRWKO\DFFRUGLQJWRRQH and automation technologies could see OHDGLQJURERWLFVSLRQHHU some countries in Asia and Africa miss The transformative power of new technologies including 3D printing and robot- LFVFUHDWHPXOWLSOHRSSRUWXQLWLHVIRUPDQXIDFWXULQJGLVWULEXWLRQDQGZDUHKRXVLQJ out on the mass manufacturing economic VDYLQJVDQGVXSSO\FKDLQRSWLPL]DWLRQEXWPDQ\SHRSOHEHOLHYHWKH\DOVRSRVH growth that has through much of history DWKUHDWWRHPSOR\PHQWLQGHYHORSHGHFRQRPLHV+RZHYHU0HORQHH:LVH&(2 RI)HWFK5RERWLFVDOHDGLQJ86EDVHGURERWLFVVROXWLRQVSURYLGHUIRUWKHORJLVWLFV catapulted economies from ‘low’ wealth to LQGXVWU\VD\VURERWLFVLQIDFWRIIHUVVROXWLRQVWRODERXULQDGHTXDFLHV ‘medium’ or ‘rich’, with China representing ´7KHSULPDU\EHQHÀWWKDWZHKDYHHQFRXQWHUHGWRGDWHLVWKHIDFWWKDWURERWV FDQKHOSDGGUHVVWKHMREJDSLQWKHZDUHKRXVHDQGPDWHULDOKDQGOLQJLQGXVWU\µ the most recent example. she says. “Whether developing economies can still ´%\VRPHUHSRUWVPRUHWKDQSRVLWLRQVUHPDLQXQÀOOHGLQWKHVHLQGXVWULHV - 7KHMREVFDQEHEDFNEUHDNLQJUHSHWLWLYHDQGPXQGDQH7KRVHWDVNVDUHSHUIHFW EHQHÀWIURPDGYDQWDJHVLQODERXUFRVWGH for robots. pends on the speed of development of the ´5RERWVKDYHKLVWRULFDOO\EHHQLPSOHPHQWHGLQLQGXVWULDOVHWWLQJVEHKLQGFDJHV country and the speed of adoption of the and away from human workers. Today’s breakthrough is the fact that robots are QRZZRUNLQJDORQJVLGHSHRSOHµ autonomous supply and value chain mod- Fetch’s products combine el,” he says. “Slow movers risk that they ¶IUHLJKW·DQDXWRQRPRXVPRELOH platform that can be deployed to RQO\EHQHÀWIURPWKHSRUWLRQRISURGXFWLRQ carry out a wide range of logistics required to serve their local market, if at DQGPDQXIDFWXULQJZRUNÁRZVDQG all. This is due to the trend towards more ¶IHWFKFRUH·VRIWZDUHZKLFKRUJDQ- LVHVWKHZRUNÁRZVRIWKH¶IUHLJKW· regional and local manufacturing. ÁHHWRIURERWV “Some countries might even miss this ´)HWFKRIIHUVDQHDVLO\FRQÀJXUHG set of solutions that all depend on opportunity when markets are small in autonomous collision-free naviga- VL]H DQG SURGXFWLRQ LV PRUH HIÀFLHQWO\ tion while carrying small to medium ORDGVLQDZDUHKRXVHHQYLURQPHQWµ organized regionally using the larger and VD\V:LVH stronger economies as the basis for local “The freight robotic base provides and regional supply.” the basic transportation capabil- ity. It can take over a simple task +H FRQWLQXHV ´*RYHUQPHQWV QHHG WR like moving items from one part of ensure high speed industrial development. DZDUHKRXVHWRDQRWKHUVDYLQJ humans miles of walking each day. National competitiveness can be achieved It will be augmented with a variety of structures mounted on the base through easing the protection of local in- to enable different applications. GXVWULHV DQG HQVXULQJ D KLJKO\ HIÀFLHQW “fetchcore is the software system cross-border supply chain ecosystem. This that allows warehouse managers WRWDLORUWKHDFWLYLWLHVRIWKHIUHLJKWURERWVWRWKHVSHFLÀFQHHGVRIWKHLURSHUD- means the minimum level of trade barriers tion. Its ease of use allows the Fetch solution to be continuously improved by the IRU LPSRUWV DQG H[SRUWV VXIÀFLHQW GLJLWDO ZDUHKRXVHPDQDJHUVWKHPVHOYHVµ and physical infrastructure, light paperless :LVHVD\VWKHODWHVWURERWLFDQGZDUHKRXVLQJVROXWLRQVRQWKHPDUNHWKDYH removed the necessity of entirely restructuring operations to incorporate them. DGPLQLVWUDWLYH SURFHVVHV DQG HIÀFLHQW ´6RPHWHFKQRORJLHVUHTXLUHQHZHTXLSPHQWWREHLQVWDOOHGOLJKWVLQIURQWRI vertical business ecosystems, with the ELQVRUFRQYH\RUVUXQQLQJGRZQDLVOHVIRUH[DPSOHµVKHVD\V´2WKHUWHFKQROR- JLHVUHTXLUHHYHQPRUHFKDQJHVXFKDVUHSODFLQJWKHVKHOYHVWKHPVHOYHVZLWK complete set of suppliers. This will not only RQHELJPDFKLQHWKDWVWRUHVDQGUHWULHYHVELQV2XUURERWVUHTXLUHDOPRVWQR help the local economy to grow but also at- change to the warehouse environment. tract foreign investment.” “They simply take over transport of items or bins from one place to another. A robot carries the bins to where they need to go. The shelving and bins remain the The implications of this trend could also VDPHDVGRHVWKHSLFNLQJSURFHVV7KHURERWVXVHWKHVDPHDLVOHVDVWKHSLFNHUV impact on migration patterns. The United VLQFHWKH\FDQVDIHO\FRH[LVW7KHSLFNHUVMXVWJHWWLPHEDFNWKDWWKH\ZRXOGKDYH VSHQWLQQRQYDOXHDGGZDONLQJµ Nations estimates that sub-Saharan Af- 6KHDOVRFODLPVWKHORJLVWLFVDQGPDQXIDFWXULQJVHFWRUVKRXOGH[SHFWPRUH rica’s population will roughly triple over the self-learning innovations in the future as more processes become automated. ´,QVWHDGRIULJLGLQVWDOODWLRQVRIHTXLSPHQWDQGLQIUDVWUXFWXUHQHZHUWHFKQROR- next half-century, to about 2.7 billion. With- JLHVDOORZVROXWLRQVWREHLPSOHPHQWHGLQDZD\WKDWWKH\FDQEHPRGLÀHG out the traditional industrialisation devel- DQGLPSURYHGZLWKPLQLPDOHIIRUWµVKHH[SODLQV´7KLVQLPEOHQHVVVXSSRUWVWKH fundamental process of improvement - learning. opment model to create suitable employ- ´$V\RXOHDUQPRUHDERXWKRZ\RXURSHUDWLRQFDQZRUNEHWWHU\RXFDQWDLORU ment and wealth, many are likely to look to WKHV\VWHPVWRVXSSRUWWKRVHQHZLQVLJKWVHDVLO\DQGTXLFNO\7KLVÁH[LELOLW\FRPHV Europe’s porous borders for employment from the increasing role that software plays in the fundamental behaviour of WKHV\VWHPVµQ opportunities. QQQ :LQWHU CARGO AIRPORTS AIRLINE SERVICES 47 NORTH AMERICA AIRPORT REPORT: AIRPORT REPORT: Mixed fortunes International cargo volumes have been down slightly overall this year at North American airports. 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DOVR VDZ D FDUJR DQG IUHLJKWHU RSHUDWRUV 0RVW XQGRXEWHGO\ DUH KHOSIXO EXW PDLQWDLQLQJ 48 CARGO AIRPORTS AIRLINE SERVICES :LQWHU AIRPORT REPORT: NORTH AMERICA 0,$·V SULPDF\ KDV QRW EHHQ SDVVLYH )RU MAJOR U.S. INTERNATIONAL CARGO GATEWAYS TOTAL GHFDGHV WKH 0LDPL'DGH 'HSDUWPHQW RI CARGO TONNAGE (METRIC) & GROWTH RATE $YLDWLRQKDVFRQVLVWHQWO\JLYHQDLUFDUJRDW Airport 2000 2015 Growth WHQWLRQODFNLQJDWRWKHUDLUSRUWV$LUFDUJR Miami (MIA) 1,642,744 2,005,175 22% WRQQDJHJUHZDW0,$EHWZHHQ DQG DQG WKH DLUSRUW·V FDUJR IDFLOL Los Angeles (LAX) 2,038,784 1,938,624 -5% WLHVKDYHEHHQLPSURYHGDQGH[SDQGHGWR Chicago (ORD) 1,468,553 1,592,826 8% VXVWDLQWKDWJURZWK7KHEDQNUXSWF\RILWV New York (JFK) 1,818,838 1,286,484 -29% IRUPHUPDUNHWVKDUHOHDGHU²$UURZ$LU²LQ Newark (EWR) 1,082,407 683,760 -37% DQGVLPLODUGLVUXSWLRQVLQYROYLQJRWK Dallas/Ft. Worth (DFW) 903,141 670,029 -26% HUFDUULHUVZHUHDEVRUEHGZLWKRXWWKUHDWWR Atlanta (ATL) 868,286 626,202 -28% 0,$·V FRPSHWLWLYHQHVV :KHWKHU HQVXULQJ San Francisco (SFO) 872,252 459,467 -47% WKDWIDFLOLWLHVDQGVHUYLFHVVXSSRUWLQJSHU LVKDEOH LPSRUWV DUH DGHTXDWH RU SUHVVXU Houston (IAH) 368,498 429,785 17% LQJ UHJXODWRUV 0,$·V PDQDJHPHQW RSHU Philadelphia (PHL) 559,340 427,645 -24% DWHVDVLILWLVVWLOOFKDVLQJWKHOHDGUDWKHU Seattle (SEA) 456,920 332,636 -27% WKDQÀUPO\HQWUHQFKHGDVWKHOHDGHU Boston (BOS) 474,943 274,983 -42% ,Q /RV $QJHOHV ,QWHUQDWLRQDO $LU Source: Data from Airports Council International with Analysis SRUW /$; DFFRXQWHGIRUDERXW PLOOLRQ by Webber Air Cargo, Inc. Our destination: High efficiency in your intralogistics Individual turnkey solutions for your air cargo project Benefit from synergies: ACUNIS is a new brand of AMOVA and Unitechnik. With combined know-how and experience in intralogistics, we offer you support at every stage of your air cargo project. www.acunis.de :LQWHU CARGO AIRPORTS AIRLINE SERVICES 49 11 th WORLD CARGO SYMPOSIUM Transform Today : Shape Tomorrow Abu Dhabi, United Arab Emirates 14 - 16 March Join us in Abu Dhabi for WCS 2017! World Cargo Symposium is the largest and most Mark your calendar and join more than 1,000 air cargo prestigious annual event of its kind and the only worldwide leaders for thought-provoking and insightful sessions, event that brings together key stakeholders from the entire workshops, tracks, and summits focused on the latest air cargo supply chain. trends affecting our industry including: technology & innovation, security & customs, cargo operations, Don’t miss a visit to the captivating Sheikh Zayed Mosque - sustainability and more. a landmark that reportedly “unites the world” and was constructed using artisans and materials from across the globe. When: 14 - 16 March 2017 Where: Abu Dhabi, United Arab Emirates Venue: Abu Dhabi Convention Center Audience: Open to all For more information or to register, visit: www.iata.org/wcs AIRPORT REPORT: NORTH AMERICA TOTAL CARGO TONNAGE (METRIC) UHJLRQV LQ WKH 86 ZLWK GHQVLW\ RI ODUJH FOR CALENDAR YEAR 2015 HPSOR\HUV LQ PDQXIDFWXULQJ DQG GLVWULEX WLRQ 8QOLNH 0,$·V YLUWXDO ERWWOHQHFN WR /DWLQ$PHULFDDQG/$;·VGRPLQDQFHRQWKH :HVW&RDVW25'WKULYHVLQDUHJLRQÀOOHG ZLWK VXEVWDQWLDO FRPSHWLWRUV HYHQ RYHU ODSSLQJ -).·V VHUYLFH DUHD ,QGLDQDSROLV ,QWHUQDWLRQDO $LUSRUW DFFRPPRGDWHV )H G([·VVHFRQGODUJHVW1RUWK$PHULFDQKXE QHDUE\5RFNIRUGKRVWV836·VUHJLRQDOKXE DQG'+/KDVLWV1RUWK$PHULFDQJDWHZD\ DW&LQFLQQDWL1RUWKHUQ.HQWXFN\25'KDV VWUHQJWKHQHG LWV SUHHPLQHQFH DV WKH UH JLRQ·V LQWHUQDWLRQDO JDWHZD\ HYHQ DGGLQJ Source: Webber Air Cargo, Inc. 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PDQXIDFWXULQJWHUULWRU\LQWKHZRUOGQQQ :LQWHU CARGO AIRPORTS AIRLINE SERVICES 53 $QHZW\SHRIXQPDQQHGDHULDOYHKLFOHZLOOÁ\XSWR emergency medical shipments a day across Rwanda, and subsequently in other countries, reports Will Waters Drone deliveries take off he practical application of UPS, the Vaccine Alliance (Gavi), and Zi- delivery of lifesaving medicines. DRONES drone technology within pline will help the country quickly expand The drone delivery solution aims to niche air freight markets the types of medicines and lifesaving vac- solve a problem commonly experienced T KDV WDNHQ D VLJQLÀFDQW cines that can be delivered. throughout the developing world, where step forward in the form Rwanda’s national drone delivery pro- access to lifesaving and critical health of a medical shipment delivery system in gramme enables 21 blood transfusion products is hampered by ‘the last-mile Rwanda, which will subsequently be used clinics across the western half of the problem’: the inability to deliver much- in other developing countries or inacces- country to place emergency orders by mo- needed medicine from a city to rural or sible areas. bile phone text message. The orders are remote locations due to lack of adequate A partnership involving a humanitarian then received by Zipline at its distribution transport, communication, and supply TECHNOLOGY UPDATE: TECHNOLOGY UPDATE: healthcare shipper, a robotics company, centre located in the country’s Muhanga chain infrastructure. the Rwandan government, and delivery region, where the company maintains a In Rwanda, post-partum haemorrhag- and logistics group UPS has launched ÁHHW RI GURQHV RU ¶=LSV· ZKLFK FDQ ing is the leading cause of death for WKH ZRUOG·V ÀUVW QDWLRQDO GURQH GHOLYHU\ IXOÀORUGHUVLQDURXQGPLQXWHV pregnant women. Blood requires stor- service in a ground-breaking project that (DFK=LSFDQÁ\DURXQGWULSRIXSWR age and transport at safe temperatures has the potential to dramatically improve NPîHYHQLQZLQGDQGUDLQîFDUU\LQJ and spoils quickly, but because there are healthcare provision and logistics across NJRIEORRGZKLFKLVHQRXJKWRVDYH many different blood products and no the developing world. The Rwandan gov- a person’s life, the project partners said. way to accurately project future needs, ernment begun using the drones in Octo- Zips take off and land at the ‘Nest’, and many transfusion clinics do not keep all EHUWRPDNHXSWRRQGHPDQGHPHU make deliveries by descending close to the blood they may need in stock. gency deliveries per day of life-saving the ground and ‘air dropping’ medicine During Rwanda’s lengthy rainy sea- blood to 21 transfusing facilities located via a mini-parachute system to a desig- son, many roads wash out, becoming in the western half of Rwanda. nated spot called a ‘mailbox’ near the impassible or non-existent. The result is The drones and delivery service are health centres they serve. that all too often someone in need of a built and operated by Zipline, a California- Rwanda plans to expand Zipline’s lifesaving transfusion cannot access the based robotics company. While Rwanda’s drone delivery service to the Eastern blood they need to survive, the project drone delivery service will initially focus KDOI RI WKH FRXQWU\ LQ HDUO\ SXW participants said. on shipments of blood for transfusions, ting almost every one of the country’s “The inability to deliver life-saving an international partnership between 11 million citizens within reach of instant medicines to the people who need them 54 CARGO AIRPORTS AIRLINE SERVICES :LQWHU TECHNOLOGY UPDATE: DRONES the most causes millions of preventable quickly expanding the types of medicines blood products or a vaccine for someone deaths each year around the world,” said and vaccines that can be delivered. With who has been exposed to rabies with this Zipline CEO Keller Rinaudo. “We’ve built an UPS’s global supply chain expertise, Gavi’s technology could make the difference be- instant delivery system for the world, allow- public health and vaccine knowledge, and tween life and death. ing medicine to be delivered on-demand Zipline’s last-mile delivery technology, the “This project will also act as an impor- and at low-cost, anywhere.” partnership hopes to “use the knowledge tant test for whether drones are a viable gained in Rwanda and export it around the way to improve targeted vaccine delivery Rwanda and beyond world”, the partnership said. around the world. Every child deserves He said the commercial partnership be- UPS will also use its logistics resources basic, lifesaving vaccines; this technology tween Rwanda and Zipline was expected to to help the partnership expand its reach. could be an important step towards ensur- save thousands of lives over the next three For example, the company transported ing they get them.” years, with Rwanda leading the world by the entire Zipline system from California to Over the course of the next year, and using cutting-edge technology to leapfrog Rwanda in one of its cargo aircraft, help- with the support of the partnership with the absence of road infrastructure and to ing to ensure Zipline’s distribution centre UPS and Gavi, Zipline said it plans to ex- provide healthcare access to all its 11 mil- could be constructed in just four weeks. pand drone delivery services to countries lion citizens. Seth Berkley, CEO of Gavi, the Vaccine across Africa and the Americas. Zipline %HQHÀWLQJ IURP D 86 PLOOLRQ JUDQW Alliance, commented: “Drones have the also recently announced plans to expand from the UPS Foundation, the partner- potential to revolutionise the way we reach its service to the US, where it will serve ship will study Rwanda’s blood drone remote communities with emergency med- Native American reservations in Maryland, delivery operation with an eye towards ical supplies. The hours saved delivering Nevada, and Washington State. QQQ Connecting Global Competence LOGISTICS makes it happen May 9–12, 2017 Messe München, Germany www.aircargoeurope.com :LQWHU CARGO AIRPORTS AIRLINE SERVICES 55 Cargo owners have agreed to encourage wider industry recognition and adoption of Cargo iQ and its standards, reports Will Waters CARGO IQ PROCESS UPDATE: PROCESS UPDATE: KLSSHUV ZLOO ÀQDOO\ JHW D for the two groups to work together towards ´$JDLQVWWKHEDFNGURSRIZHDNJURZWKLQ FKDQFH WR HQVXUH WKH DLU DPRUHHIÀFLHQWTXDOLW\GULYHQDQGVHFXUH LQWHUQDWLRQDOWUDGHVKLSSHUVDUHORRNLQJIRU IUHLJKW VHFWRU·V SHUIRU DLUFDUJRVXSSO\FKDLQDQGH[SORUHVPHWK HYHQJUHDWHUYDOXHIURPWKHDLUFDUJRLQGXV S PDQFH VWDQGDUGV PHHW RGV IRU LQGXVWU\ DQG VKLSSHUV WR EHWWHU WU\:KLOHWKHLQGXVWU\HQMR\VWUDGLWLRQDOEHQ WKHLUQHHGVDIWHUWKH*OREDO FRPPXQLFDWHVRWKDWFXVWRPHUQHHGVDUH HÀWVRIVSHHGRYHURWKHUPRGHVLWQHHGVWR 6KLSSHUV· )RUXP *6) DQG &DUJR L4 PHWDQGWKHEHQHÀWVRIDLUFDUJRDUHXQ HQVXUHWKDWLWLVZRUWKWKHSUHPLXPVHUYLFH DJUHHGIRUPDOO\WRZRUNWRJHWKHU GHUVWRRGE\WKHFXVWRPHU FRVWYHUVXVRFHDQURDGDQGUDLOµ *HWWLQJFDUJRRZQHUVGLUHFWO\LQYROYHGLQ 8QGHUWKHDJUHHPHQW*6)DQG&DUJRL4 =LPPHUPDQ UHVSRQGHG ´$V VKLSSHUV &DUJRL4PD\VHHPDQREYLRXVWKLQJWRGR KDYHDJUHHG FRQWLQXH WR ORRN IRU WKH EHVW VROXWLRQV WR DQGVRPHPD\ZRQGHUZK\LWKDVWDNHQVR 7RSURPRWHWKHDFFHSWDQFHLPSOHPHQ WKHLU ORJLVWLFDO QHHGV RXU LQGXVWU\ LV IDFLQJ ORQJWRKDSSHQ%XWUHVSRQGLQJWRDTXHV WDWLRQ DQG XVH RI &DUJR L4 VWDQGDUGV FRQWLQXRXVFKDOOHQJHVWRUHLQYHQWLWVHOI:LWK WLRQIURP&$$6RQWKDWYHU\WKHPH&DUJR DQGSURFHVVHVLPSURYLQJHIÀFLHQF\DQG FRQWLQXRXVSUHVVXUHRQUDWHVDQGHPHUJLQJ L4 H[HFXWLYH GLUHFWRU $ULDHQ =LPPHUPDQ RQWLPHGHOLYHU\IRUDLUFDUJRFXVWRPHUV WHFKQRORJLHV SXWWLQJ PRUH DQG PRUH GH VDLG ´*RRGLGHDVRIWHQVHHPREYLRXVZLWK 7RVKDUHLQIRUPDWLRQDQGEHVWSUDFWLF PDQGIRUUHDOWLPHLQIRUPDWLRQDQGVKLSPHQW WKHEHQHÀWRIKLQGVLJKWµ HV DLPHG DW FRQWLQXRXV LPSURYHPHQW FRQWUROLQGXVWU\SDUWLFLSDQWVQHHGWRPDNH 2EYLRXV RU QRW VKLSSHUV DQG WKH DLU RIWKHDLUFDUJRVXSSO\FKDLQ WKH ULJKW FKRLFHV LQ GHYHORSLQJ IXWXUH VHU IUHLJKWVHFWRUZLOOQRZZRUNWRJHWKHUIRUWKH 7RLGHQWLI\DQGSURPRWHZD\VWKDWSHU YLFHVDQGLPSURYLQJWKHFXUUHQWRQHVµ ÀUVWWLPHZLWKLQWKHNH\DLUIUHLJKWTXDOLW\ IRUPDQFHGDWDRIWKHDLUFDUJRVXSSO\ +H FRQWLQXHG ´7KH DLU IUHLJKW LQGXVWU\ LQLWLDWLYHDIWHU*6)DQG&DUJRL4VLJQHGD FKDLQ EHFRPHV EHWWHU DFFHVVLEOH WR EHLQJRQHRIWKHELJJHVWHQDEOHUVIRURXU PHPRUDQGXP RI XQGHUVWDQGLQJ 0R8 DW FXVWRPHUV PRGHUQ JOREDOL]HG HFRQRP\ LV D KLJKO\ 7LDFD·V$LU&DUJR)RUXP $&) LQ3DULV7KH 7RVKDUHGHWDLOVRIIRUWKFRPLQJHYHQWV FRPSHWLWLYH HQYLURQPHQW .QRZLQJ FXV WZR KDYH DJUHHG ´WR ZRUN FRRSHUDWLYHO\ ZKHUH SURJUHVV FDQ EH UHYLHZHG DLP WRPHUV· ZDQWV DQG QHHGV LV FUXFLDO $QG WR HQVXUH VKLSSHUV· QHHGV DUH PHW WR LQJ DW WKH LQGXVWU\ HQJDJHPHQW LQ RQO\ ZKHQ VKLSSHUV SDUWLFLSDWH LQ DYRLG VXSSRUWWKHLPSOHPHQWDWLRQRI&DUJRL4·V LWV VKLSPHQW FRQWURO DQG SURFHVV LQJ FRVWV DQG YDOXH LWV SURGXFWV FDQ WKH 4XDOLW\0DQDJHPHQW6\VWHP 406 DQGWR LPSURYHPHQW LQGXVWU\RIIHUWKHVHUYLFHVRXUZRUOGQHHGV SURPRWHWKHHIÀFLHQF\DQGVXVWDLQDELOLW\RI &KULV:HOVKVHFUHWDU\JHQHUDORIWKH*6) LQDQHFRQRPLFDOO\VXVWDLQDEOHZD\µQQQ WKHDLUFDUJRVXSSO\FKDLQµ FRPPHQWHG ´2XUQHZFRRSHUDWLRQZLOOPDNH *6)DQG&DUJRL4VLJQHGWKHDJUHHPHQW VXUH DLUIUHLJKW LQGXVWU\SHUIRUPDQFHVWDQG Ariaen Zimmerman from Cargo iQ seals the deal with GSF’s Chris Welsh, IROORZLQJ D MRLQW EULHÀQJ ORRNLQJ DW KRZ DUGV PHHW VKLSSHUV· QHHGV DQG DOVR KHOS witnessed by Kester Meijer, director GDWDTXDOLW\DQGLQWHURSHUDELOLW\XQGHUSLQ VKLSSHUVXQGHUVWDQGWKHLPSURYHPHQWVWKH for operational integrity at KLM and vice chairman of Cargo iQ SHUIRUPDQFH 7KH 0R8 RXWOLQHV VL[ DUHDV DLUFDUJRLQGXVWU\LVPDNLQJ 56 CARGO AIRPORTS AIRLINE SERVICES :LQWHU SM ©2016 United Airlines, Inc. 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