8`ic`e\ZXi^fi\gfik Encouraging signs and risk factors
;\X[c`e\cffdj ACC3 security solutions
G_XidX]XZkfi New GDP rules tighten cool chain
Forwarder focus Regional reports What the customer really wants Asia + Europe, Russia & CIS
JGI@E>&JLDDF8@IGFIKJ8E;J Nearly 40 All-Cargo Airlines Operate at Miami International Airport, Serving 94 Freighter Destinations Around the World. MIA is The #1 International Freight Gateway In The USA & The #1 Gateway to Latin America & the Caribbean CARE TO JOIN OUR FAMILY? MIAMI INTERNATIONAL AIRPORT Gateway to Miami, to Florida and to the Americas www.miami-airport.com facebook.com/iflymia @iflymia ASK US ABOUT ASIP4, OUR MOST INNOVATIVE AIRLINE INCENTIVE PROGRAM 8`ic`e\ZXi^fi\gfik Encouraging signs and risk factors PARVEEN RAJA ;\X[c`e\cffdj Publisher ACC3 security solutions ONWARDS [email protected] G_XidX]XZkfi New GDP rules tighten cool chain Forwarder focus Regional reports What the customer really wants Asia + Europe, Russia & CIS JGI@E>&JLDDF8@IGFIKJ8E;J DISTRIBUTED BY Business Air WILL WATERS Editor [email protected] Issue 6 © 2014 | www.evaint.com & [email protected] Content may not be reproduced in any format without written permission from EVA International Media Ltd Jgi`e^&Jldd\i)'(+:8I>F8@IGFIKJ 8@IC@E<J For more information, email [email protected] www.bahrainairport.com 17 1 EDITOR’S NOTE: Onwards and upwards 4 SECURITY: Getting your ACC3 together With the 1 July deadline for Europe’s new security rules looming, Martin Roebuck looks at the challenges and implications of compliance – and non-compliance 17 REGIONAL FOCUS: Asian progress Limited handling competition leaves ‘room for improvement’ at some airports, although standards are improving in growing markets such as Vietnam 19 AIRLINE CARGO REPORT: Encouraging signs Des Vertannes discusses recent trends and longer-term expectations for air freight 26 AIRLINE CARGO REPORT: Airline interview Marcel de Nooijer, MD of Martinair Holland and EVP of KLM Cargo, outlines his operational priorities for 2014 31 COOL CHAIN: Medical certifi cate Revised Good Distribution Practice (GDP) guidelines for pharmaceuticals are causing some European airports and handlers to get their cool-chains validated 34 COOL CHAIN: Perishable nature Speed of processing could be improved at some airport cargo handling facilities, says Kuehne + Nagel’s perishables logistics director Dennis Verkooy 38 REGIONAL FOCUS: Europe, Russia and CIS As Russia has its day in the Winter Olympics sun, the country’s air cargo community is becoming more effi cient and increasingly electronic 44 ACH PREVIEW: Italian style CAAS looks ahead to this year’s Air Cargo Handling Conference in Milan 46 FORWARDER FOCUS: What the customer really wants Air freight risks over-engineering solutions and should focus instead on the basics, says Panalpina’s Jeannette Goeldi Jgi`e^&Jldd\i)'(+:8I>F8@IGFIKJ 8@IC@E<J Getting your together With the 1 July he European Commission carrier operating into the EU from a third moved rapidly to enhance country airport”. deadline for the security of incoming air By February 2012, carriers bringing Europe’s new T cargo into Europe follow- cargo into Europe had to sign up to a “dec- ing two incidents in October ODUDWLRQRIFRPPLWPHQWVµDVWKHÀUVWVWHS security rules 2010 when bombs originating in Yemen towards obtaining ACC3 approval. Essen- were discovered en route to the US. tially, this was a series of promises to the looming, Thanks to Saudi intelligence, explosives civil aviation authority of an EU member Martin Roebuck packed in computer printer cartridges, state (and this by extension to the whole which had travelled on both passenger EU) to the effect that cargo would not be looks at the aircraft and freighters without detection, accepted unless it was fully secured and challenges and were intercepted at stopovers in Dubai the carrier was aware of what the shipment and at East Midlands Airport in the UK. was, where it originated and what had hap- implications of The narrow escape led, just 10 months lat- pened to it in transit. compliance – and er, to the adoption of Regulation EU1082, EU1082 enters into force on 1 July. known to those carriers affected as ACC3. )URPWKLVGDWHDFDUULHUZLOOEHDEOHWRÁ\ non-compliance The acronym stands for “air cargo or mail cargo into the EU only if an independent + :8I>F8@IGFIKJ 8@IC@E<J Creating connections www.schiphol.com/cargo J<:LI@KP validator, accredited by a member state, KDV FRQÀUPHG WKDW WKH FDUULHU·V RSHUD tions meet required security standards at DQ\DLUSRUWWKDWLVDÀQDOSRLQWRIGHSDU ture for Europe. 6SHDNLQJ DW D PHGLD EULHÀQJ LQ 'H For many months after the adoption of EU1082, nothing was done about recruiting and training cember, Mike Woodall, project leader for the small army of validators that were going independent validation and regulatory to be needed engagement at IATA, said this was likely to be a less complex issue for non-European carriers that typically operate to Europe – even if it is to multiple locations – from a single hub or a small number of major airports. However, European carriers are in the reverse position, and will have to validate most of the stations across their networks from which they operate into their home hubs. IATA believes more than 1,000 stations are likely to be affected immediately by EU1082, while a consultancy that made its own assessment on behalf of the Eu- URSHDQ &RPPLVVLRQ DUULYHG DW D ÀJXUH RI 700 airports requiring validation this year, and 2,700 more by 2019. Exemptions There are exemptions. Woodall, who is on a two-year secondment to IATA from his role as head of security regulation at the 8.·V 'HSDUWPHQW IRU 7UDQVSRUW H[SODLQV that airports in countries that are outside the EU but in the European Economic Area forwarders that provide screened or se- this process and the company is now re- (Norway, Iceland and Liechtenstein), plus cured cargo to carriers to volunteer to be peating the exercise at the new Dubai World Switzerland, which is outside the EEA but independently validated in their own right Central airport, where it hopes to be vali- has a similar agreement with the EU, are instead of multiple times by each carrier, dated by May. automatically understood to be compliant and thus become an RA3. One of two The main challenge for the company was with the regulation. Also exempt are 12 ad- designations running parallel to ACC3 for to align its existing security systems with ditional countries assessed as having safe carriers, RA3 refers to regulated agents in the requirements of the new regulation, procedures and appearing on the so-called third countries. Known consignors send- UHDG\WRSDVVSUHFHUWLÀFDWLRQDXGLWV´%XW “Green List” that EU member states can ing air freight to the EU can also choose as we had related systems and procedures make available to carriers on request. to go for their own validation, and would LQ SODFH DOUHDG\ WKH FHUWLÀFDWLRQ SURFHVV There are a number of ways in which the become a KC3. went ahead without any major setbacks,” industry can reduce the effort and cost of a dnata spokesman says. the validation process. One is “mutualisa- The RA3 route “The main cost was with respect to the tion”, in which a number of entities agree )RU H[DPSOH GQDWD KDV EHFRPH WKH ÀUVW FHUWLÀFDWLRQ DXGLWV ZKLFK ZDV DURXQG to make use of a single validator in one lo- handling agent in the MENA region to be 20,000 dirhams (US$5,450). Minor pro- cation at the same time, reducing potential FHUWLÀHG5$UHPRYLQJWKHLPPHGLDWHQHHG cedural changes relating to acceptance, GLVUXSWLRQDVZHOODVWKHYDOLGDWRU·VWUDYHO for each carrier it looks after at Dubai Inter- transit, screening and documentation and accommodation costs. national to separately validate the company. were made to accommodate the require- A second route is for those handlers or It took three to four months to go through ments of RA3, based on the feedback we - :8I>F8@IGFIKJ 8@IC@E<J When it comes to the transportation of High Value Cargo, uncompromising standards of VHFXULW\DQGFRQȴGHQWLDOLW\DUHUHTXLUHGb AIR CARGO 7KDQNVWRRXUSURIHVVLRQDORɝFHUVDQGGULYHUVRXU HANDLING ORQJWHUPH[SHULHQFHDQGVSRWOHVVUHSXWDWLRQLQWKH CONFERENCE 2014 FDUJRLQGXVWU\ZHSURYLGHDZLGHUDQJHRI6HFXUH +DQGOLQJDQG7UXFNLQJ6HUYLFHV 2XUEXVLQHVVGHYHORSPHQWXQLWDQGRXUVHFXULW\ VSHFLDOLVWVZLOOKHOS\RXȴQGLQJWKHWDLORUHGVROXWLRQ WKDWȴWV\RXEHVW www.alhagroup.com J<:LI@KP Dnata’s Dubai World Central handling facilities are expected to become RA3 validated in May received, and are being implemented as and some have already received approval SODFLQJWKHPRQDQRIÀFLDO(8UHJLVWHUIURP part of routine enhancements.” for this approach from their allocated EU which carriers and others looking to validate He says carriers using validated dnata state appropriate authority.” themselves could select. facilities can rely on secure handling of With the clock ticking, IATA established WKHLU IUHLJKW ZKLOH WKH EHQHÀW RI 5$ WR Validating the validators the Center of Excellence for Independent dnata is that “it reduces the time we have The Consignment Security Declaration Validators in Geneva. The association has to engage with each carrier and their cor- (CSD) is the most practicable tool for a car- engaged face to face with more than 800 responding teams if they were to conduct ULHUWRFRQÀUPWKDWFDUJRDQGPDLOGHVWLQHG individuals via one-day awareness sessions, LQGHSHQGHQWYHULÀFDWLRQDXGLWVµ for the EU has been screened or comes three-day “readiness workshops” and cus- Bangkok Flight Services is another ex- through a secure supply chain. IATA devel- tomised in-house training programmes to ample of a handler that has gone down the oped a standardised electronic CSD in co- help the industry understand the practical RA3 route. operation with the industry and regulators impact of the regulation. Another way in which carriers can re- to streamline this process, but Woodall says After putting three trainers in place, CEIV duce the impact of EU1082 is to request a paper version can be used in countries launched a validator training course last “road map” approval, Woodall explains. that do not yet permit electronic declara- year, which comprises a week of intensive “They may have 100 last points of depar- tions. The paper version recently received classroom training leading to a two-part, six- ture to the EU, but can apply for approval ICAO endorsement. KRXUH[DP´7KHUH·VDIDLOXUHUDWHDQG through a sampling process. If they have a The elephant in the room, however, was LQPDQ\ZD\VWKDW·VDJRRGWKLQJµ:RRGDOO FUHGLEOHLQKRXVHSURFHVVWKH\FDQGR that for many months after the adoption of VD\V´,W·VQRWDFDVHRIWXUQXSIDOODVOHHS of validations per year instead of having to EU1082, nothing was done about recruiting pass. Candidates have to earn this. They do it all up front. the small army of validators that were go- have to give up a week of potential employ- “This rolling programme spreads the bur- ing to be needed, training them, assessing ment and pay their living expenses in Ge- den, especially for Europe-based carriers, them to a common, approved standard and neva, plus the cost of the course.” / :8I>F8@IGFIKJ 8@IC@E<J Of 96 would-be validators put through engagement with EU authorities. /XIWKDQVDLVFRQÀGHQWWKDWLWVHVWDEOLVKHG background checks and a pre-approved Some states are “less than amused”, security procedures will enable it to validate process by EU governments, 84 have so far he says, and one has written to all regu- these stations over time without changing DFKLHYHG WKH PLQLPXP H[DPLQDWLRQ lated agents and carriers saying they must how it operates on the ground. The length of pass mark. Successful candidates receive a not permit validators in without written time a validator will have to spend on site, FHUWLÀFDWHIURP,$7$EXWLWLVWKHUHVSRQVL authorisation. watching the screening process, examining ELOLW\RIWKH(8PHPEHUVWDWHWKDWÀUVWSXW Where there is a stand-off, Woodall as- training records and so on, will vary by size them forward to formally accredit them and sumes the EC will need to explain at state- of station but should only be one to two days place them on the EU database. to-state level why it has introduced the new if enough work is done remotely in advance, Seventy-nine have so far been accred- requirement, pointing out the likely conse- Mandel predicts. ited as independent validators. Some of quences in terms of lost air freight exports Lufthansa is taking advantage of the the remainder are regulators themselves, from non-compliant locations if a satisfac- “road map” approach, which allows three Woodall says, or for other reasons do not tory solution cannot be found. VWDWLRQV RU RI WKH WRWDO QXPEHU RI VWD wish to offer their services commercially to Compliance is potentially “a good story WLRQV ZKLFKHYHU ÀJXUH LV KLJKHU WR EH LQ the industry. to tell” and airports in reluctant countries spected per year. It is unclear whether there are yet enough may be able to position themselves as new This would technically involve the carrier validators to help carriers meet the looming regional hubs, he suggests. But he admits: YDOLGDWLQJÀYHVWDWLRQVSHU\HDUWKRXJKLW deadline. “We will continue to train as many “For some states the conversation is quite will have put an initial seven through the prospective validators as states send, but new and feelings are still raw.” process by 1 July. “We have permission the supply of candidates coming forward for from the German authorities for this and training is drying up,” Woodall says. LW·VSUHWW\KHOSIXOWRKDYHWKLVRSWLRQµ0DQ So what will happen on 1 July if carriers del says. have key staging posts en route to Europe ACC3 validation will be built into Lufthansa that have not been independently validated? &DUJR·VH[LVWLQJVFKHGXOHIRUDXGLWLQJLWVVWD “If any stations are not compliant, Euro- tions on a regular two or three-yearly basis, pean regulators will ban those carriers from he explains. “Our priority is to ensure proper bringing all cargo into Europe. The mecha- security, not simply to implement rules.” nism for this is still being debated but the Although validating stations via regulated regulation is clear,” Woodall says. agents has some value, Mandel warns: “Ac- ´:H·YHVDLGWRWKHUHJXODWRUVZKDWGRHV FRUGLQJ WR WKH &RPPLVVLRQ·V FXUUHQW LQWHU non-compliance look like? Does it mean pretation, the handler would have to look that inspectors will be standing on the ramp after the complete process, from accepting at a destination airport, saying ‘you must cargo from the forwarder through to loading QRWRIÁRDGWKDWFDUJR·"7KH\·UHQRWVD\LQJ the aircraft. Roland Mandel they will prohibit aircraft from landing, and “In several places, the activities of the are proposing to negotiate a stepped ap- handler do not include screening, which proach to attaining compliance. But eventu- ‘Our priority is might be done by the military, the police or ally they will run out of patience and look to to ensure proper other entities. They might not want to let a impose sanctions.” security, not simply to validator in. We have put this question to The regulations allow carriers to apply the German authorities and the Commis- for an extended deadline for “objective implement rules’ VLRQEXWWKH\GRQ·WKDYHDFOXHKRZWRGHDO reasons” including inability to contract an with that.” authorised validator, or where a location In certain cases, Lufthansa has made is so dangerous that a state may have to clear that it will operate to tougher stand- undertake its own validation. But the wider Airline view ards than the EU criteria. Lufthansa Cargo political issue, Woodall acknowledges, is Roland Mandel, head of aviation security CEO Karl Ulrich Garnadt, who attended WKDWFHUWDLQFRXQWULHV·FLYLODYLDWLRQDXWKRUL at Lufthansa Cargo, says that when Green ,$7$·V 'HFHPEHU SUHVHQWDWLRQ VDLG ´:H ties do not accept that their carriers should List countries such as the US and China are will continue not to accept cargo from cer- be subject to the new EU requirement at taken out of the equation, the carrier is left tain countries, and there are others on the all and may be looking to delay or negoti- with “90 to 95” stations where it will need to Green List where we feel additional meas- ate validation requirements via direct comply with the new regulation. ures are necessary.” QQQ Jgi`e^&Jldd\i)'(+:8I>F8@IGFIKJ 8@IC@E<J ightly controlled airport 2VDNDDQG6HRXOLWKDVVWLOOQRWSHQHWUDW Limited handling operating regimes across ed China. competition and $VLD KDYH PDGH LW GLIÀFXOW %DQJNRN )OLJKW 6HUYLFHV %)6 D MRLQW infrastructure at T for global cargo handlers to YHQWXUH EHWZHHQ :RUOGZLGH )OLJKW 6HU JDLQDVLJQLÀFDQWIRRWKROGLQ YLFHV DQG %DQJNRN $LUZD\V LV :)6·V some airports the region, and the recession didn’t help RQO\ FDUJR YHQWXUH LQ $VLD WR GDWH :)6 those that had already made tentative LV DFWLYH LQ ,QGLD EXW RQ WKH UDPS DQG in the region moves east. passenger side only, in Delhi and Cochin, leaves ‘room for Swissport, for example, was awarded LQSDUWQHUVKLSZLWK%LUG*URXSDV%:)6 a concession at Singapore’s Changi Air- :)6 ZDV DZDUGHG RQH RI WKH WZR FDUJR improvement’, SRUWLQDQGSURYLGHGDIXOOUDQJHRI KDQGOLQJIUDQFKLVHVLQ'HOKLLQ EXW JURXQG KDQGOLQJ VHUYLFHV DW WKH DLUSRUW SXOOHGRXWDVWKHJOREDOFUHGLWPDUNHWFRO although standards LQFOXGLQJQHZZDUHKRXVLQJ7KHFRPSDQ\ ODSVHG7KLVSURMHFWZDVHYHQWXDOO\SLFNHG are improving in ZRQ EXVLQHVV IURP IRXU PDMRU DLUOLQHV XSE\ORFDORSHUDWRU&6&,QGLD VHHVHSD with one former client describing it hav- UDWH,QGLDDUWLFOH growing markets LQJ ´D FUHGLEOH EXVLQHVV SODQµ +RZHYHU ´&LUFXPVWDQFHVKDYHFKDQJHGDVWLPH such as Vietnam, DVWKHWUDGLQJHQYLURQPHQWJUHZWRXJKHU KDVSDVVHG:H·UHYHU\NHHQRQWKHFDUJR WZRORQJHVWDEOLVKHGFRPSHWLWRUVFXWWKHLU KDQGOLQJ PDUNHW LQ ,QGLD DQG ZH·UH IRO reports Martin UDWHVDQG6ZLVVSRUWZDVIRUFHGWRSXOORXW ORZLQJ D QXPEHU RI RSSRUWXQLWLHV YHU\ Roebuck of Singapore in 2009. FORVHO\µVD\V:)6FKLHIRSHUDWLQJRIÀFHU ,WSOHGJHGWRIRFXVRQWKH-DSDQHVHDQG %DUU\1DVVEHUJ 6RXWK.RUHDQPDUNHWVZLWK&KLQDDOVRRQ ´:H·UHDFWLYHO\SXUVXLQJFDUJRSURMHFWV LWVZLVKOLVW%XWZKLOHWKHFRPSDQ\WRGD\ LQ ,QGRQHVLD D FRXSOH RI WKH HPHUJLQJ RIIHUV FDUJR KDQGOLQJ DW 7RN\R 1DULWD FRXQWULHV RI VRXWKHDVW $VLD DQG LQ WKH (' :8I>F8@IGFIKJ 8@IC@E<J AIR CARGO HANDLING CONFERENCE 2014 THE SHERATON MALPENSA AIRPORT HOTEL 17th-19th September 2014 The Sheraton Malpensa Airport Hotel Air Cargo Handling Conference Cool Chain Association Conference Chaired by: Chris Notte Chaired by: Sebastiaan Scholte For more information please visit www.evaint.com or contact Rosa Bellanca on [email protected] or call +44(0)208 668 9118 I<>@FE8C=F:LJ18J@8 ,QGLDQVXEFRQWLQHQWRWKHUWKDQMXVW,QGLD ‘Circumstances have FRQWURORIWKHFRPSDQ\6LQJDSRUH·V6$76 LWVHOI %DQJNRN KDV SURYHQ DQ H[FHOOHQW KDV DQ ,QGLDQ RZQHG MRLQWYHQWXUH VKRZFDVH DQG ZH·UH VHHLQJ PXFK LQWHU changed as time has FRPSDQ\ $LU ,QGLD 6$76 LQ SDUWQHUVKLS HVW IURP RWKHU DLUSRUWV LQ LQWURGXFLQJ D passed. We’re very keen with Air India, operating cargo and pas- high standard independent cargo handler on the cargo handling senger handling services at airports WRWKHLUJURZLQJPDUNHWVµ LQFOXGLQJ %DQJDORUH 'HOKL +\GHUDEDG 6HW XS LQ D \HDU EHIRUH %DQJ market in India, and 0DQJDORUHDQG7ULYDQGUXPZKLOH7XUNH\·V NRN·VQHZ6XYDUQDEKXPLDLUSRUWRSHQHG we’re following a Çelebi is also present in Delhi. %)6 VDZ WKURXJKSXW RI WRQQHV 2XWVLGH RI ,QGLD ² ZKLFK IUHHG XS LWV ODVW\HDU,WVWRSWKUHHDLUOLQHVE\YROXPH number of opportunities PDUNHWVHYHUDO\HDUVDJRWRLQYLWHWHQGHUV ZHUH +RQJ .RQJ $LUOLQHV (PLUDWHV DQG very closely’ IURPLQWHUQDWLRQDOO\UHSXWHGFRPSDQLHV² Qatar Airways. Barry Nassberg most of Asia is white territory on the maps “Over the past two years we’ve made of the international cargo-handling opera- VLJQLÀFDQWFKDQJHVLQFOXGLQJLQVWDOODWLRQ tors. So how well are airlines’ cargo-han- RI DQ DXWRPDWHG VWRUDJH DQG UHWULHYDO dling needs in the region being served? 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We treat our customers like stars! Visit Jettainer during IATA World Cargo Symposium in Los Angeles, 11-15 March 2014. Reserve your spot on the red carpet! [email protected] Jgi`e^&Jldd\i)'(+:8I>F8@IGFIKJ 8@IC@E<J RETURN TO GROWTH FOR INDIA’S INTERNATIONAL HUBS, BUT ITS SMALLER The Perishable Cargo Zone within Cargo Service Center’s Cargo AIRPORTS ARE LEFT BEHIND Terminal 2 at Delhi Airport ndia’s air cargo exports and imports I totalled around 1.3 million tonnes in 2013, according to leading handler Cargo Service Center (CSC) India. Delhi, with 390,000 tonnes last year, is growing the fastest. Mumbai (415,000 tonnes) is still the country’s major gateway, but because of the develop- ment of new airports in the south of the country, such as Bengaluru and Hyderabad, it has been steadily losing market share to Delhi. In third place is Chennai with 221,000 tonnes. CSC Group CEO Radharamanan levels, Panicker says, and pricing regu- FRQVWLWXWHVDFRPSHWLWLYHODQGVFDSH Panicker believes India’s air cargo ODWLRQKDVH[DFHUEDWHGWKHSUREOHP exports and imports will grow in 2014, “It is left to individual airport manage- “One cannot quickly develop new IROORZLQJDUHODWLYHO\ÁDWIHZ\HDUV ment to determine what concessions products and services in response to “The Indian economy has started they will give out and how,” Panicker FXVWRPHUGHPDQGµKHREVHUYHV ORRNLQJXSQRZµKHREVHUYHV´7KH VD\V7\SLFDOO\DQDLUSRUWZLOODZDUGD government has cleared $19 billion One issue is that export cargo is usu- concession on a build, manage and worth of infrastructure projects in the ally delivered to the airport as “huge operate model, which obliges the last few weeks, which were earlier QXPEHUVRISLHFHVSHU$:%µUDWKHU concessionaire to develop its own facili- VWXFNLQDEXUHDXFUDWLFPXGGOH:LWKD than palletised, making for highly inef- WLHV´7KLVFUHDWHVLWVRZQLQKHUHQWULVNDV general election in April likely to bring a ÀFLHQWKDQGOLQJ´ ,WLVRQO\LQ+RQJ.RQJWKDWZHXQORDGD ,7´7KHUHDUHDQXPEHURISROLWLFDORUOHJ 9LHWQDP)LRUDQLDQDWLYHRIWKHFRXQWU\ IXOO DLUFUDIW %XW 3XGRQJ FDQ EH D FKDO islative barriers in the way of international VD\V +R &KL 0LQK ZDV 9LHWQDP·V PDLQ OHQJH EHFDXVH RI UHPRWH SDUNLQJ VORWVµ KDQGOLQJ RUJDQLVDWLRQV ,W·V KDUG WR ÀQG FHQWUHIRUSURGXFWLRQRIWH[WLOHVDQGVKRHV H[SODLQV 0LFKHO )LRUDQL &DUJROX[·V PDQ WKHULJKWSDUWQHUDQGVHFXUHDOLFHQFHµ XQWLOWKHJRYHUQPHQWGHFLGHGWRVWLPXODWH DJHUIRUJURXQGKDQGOLQJFRQWUDFWV GHYHORSPHQWLQWKHQRUWKWKHUH1RZZLWK 7KH FDUULHU VHUYHV %HLMLQJ DQG ;LDPHQ Zhengzhou challenge ELJJOREDOQDPHVVXFKDV6DPVXQJ+RQ LQ &KLQD DV ZHOO DV 6KDQJKDL DQG +RQJ &DUJROX[VHHVDQRSSRUWXQLW\WRRSHQDQHZ GD DQG 1RNLD HVWDEOLVKLQJ WKHPVHOYHV .RQJ´7KHRYHUDOOLQIUDVWUXFWXUHDWWKHVH UHJLRQRI&KLQDDIWHU+1&$EDVHGDW=KHQJ +DQRLLV´FDWFKLQJXSTXLFNO\µ DLUSRUWVLVH[FHOOHQW:HJHWJRRGVHUYLFH ]KRX LQ +HQDQ SURYLQFH DJUHHG WR WDNH WKH 7KHPDLQH[SRUWÁRZIRU&DUJROX[LVRYHU ERWKLQWKHZDUHKRXVHDQGRQWKHUDPS VWDNH SUHYLRXVO\ KHOG E\ /X[HPERXUJ +RQJ.RQJWRWKH867KHFDUULHURSHUDWHV DQG WKH HTXLSPHQW LV WR WKH KLJKHVW JRYHUQPHQW7KHQHZSDUWQHUVDUHUHSRUWHGWR WKUHH IUHLJKWHUV D ZHHN WKURXJK +DQRL VWDQGDUGµ)LRUDQLVD\V EHSODQQLQJWRGHYHORSPXWXDOFDUJRKDQGOLQJ DQG FRXOG DGG D IRXUWK IUHTXHQF\ ODWHU ´,Q3XGRQJWKHUHDUHDFRXSOHRIKDQ maintenance and pilot training operations, WKLV\HDU%\FRQWUDVWDIWHUH[SDQGLQJ+R GOHUVDQGWKHVDPHLQ%HLMLQJ7KH\·YHJRW WKRXJK$PEDNVD\VKH´NQRZVRIQRGHFLVLRQµ Chi Minh services from one to three per WR EH DEOH WR KDQGOH D HTXLSPHQW DERXWHVWDEOLVKLQJDMRLQWYHQWXUHDLUOLQH ZHHNLWKDVQRZFXWEDFNWRWZR DQGVWDIIZLVH7KHELJJHUWKHDLUSRUWWKH As airports develop in inland Chinese lo- 6DLJRQ&DUJR6HUYLFH&RUS 6&6& KDV HDVLHULWLVWRÀQGDOWHUQDWLYHKDQGOHUVµ FDWLRQVVXFKDV=KHQJ]KRXQHZKDQGOHUV DIDFLOLW\LQ+R&KL0LQKEXLOW´WRWKHKLJK (OVHZKHUH LI WKHUH LV D SHUIRUPDQFH ZLOOEHDWWUDFWHGRULQYLWHGLQ+RZHYHUDV HVWVWDQGDUGV\RXFDQJHWµ)LRUDQLVD\V LVVXHFDUULHUVKDYHQRDOWHUQDWLYHEXWWR LQ RWKHU LQGXVWULHV WKDW PLJKW FXW ERWK 7RQQDJHWR1RYHPEHUZDV KDYHDSROLWHGLVFXVVLRQZLWKWKHKDQGOHU ZD\V /RFDO KDQGOHUV FRXOG H[SDQG RXW WRQQHVDQLQFUHDVHRIRQWKHÀUVW ´0DNLQJDFKDQJHLQDPRQRSROLVWLFPDU RI&KLQDLQIXWXUHDIWHUEXLOGLQJWKHLURZQ PRQWKVRI NHWLVQHDULPSRVVLEOHµVD\V+HQULN$P FRPSHWHQFLHV$PEDNEHOLHYHV 7KH FDUJR WHUPLQDO RSHQHG LQ EDN93JURXQGVHUYLFHVDQGFRPPHUFLDO &DUJROX[ VHUYHV WZR PDUNHWV LQ DQG KDV D FDSDFLW\ RI WRQQHV (+ :8I>F8@IGFIKJ 8@IC@E<J operating standards, service quality EDFNXSJUHDWO\KDPSHUHIÀFLHQF\ -R)HLNVGLUHFWRUIRUFRUSRUDWH and safety levels, now mostly insist that DQGSXQFWXDOLW\7KHSURFHVVHVLQSODFH product management air cargo at a service level agreement is signed VORZGRZQRSHUDWLRQµ9LWKDODQLVD\V Austrian freight forwarder cargo-part- DORQJZLWKWKHKDQGOLQJDJUHHPHQW “Another issue that needs to be ad- ner, who also sits on the company’s Panicker says clients are highly GUHVVHGLVWKHSDSHUZRUN$XWRPDWLRQLV board in India, says the country’s attuned to the cost of the service they DPXVWµKHDGGV´,WLVRYHUDGHFDGH infrastructure is far behind that of DUHUHFHLYLQJ+HZHOFRPHVWKHLGHDLQ since customs’ supposed introduc- China, with no more than 2% of roads principle of more competition between tion of EDI, and while there has been VXLWDEOHWUDQVSRUWLQJFDUJR handlers, but says this must be in progress in moving towards paperless 7KHGHYHORSPHQWRIJUHHQÀHOG SURSRUWLRQWRFDUJRYROXPHV$LUOLQHV ZRUNLQJZHVWLOOKDYHDORQJZD\WRJR must be realistic in their expectations, airports complicates this issue, he There has to be greater interconnectiv- adds, and the slow pace of customs KHDGGV´,I\RXKDYHWRGHYHORSQHZ ity and uniformity of implementation by GHFODUDWLRQVDOVRPDNHVOLIHGLIÀFXOW infrastructure, costs will go up and not FXVWRPVDFURVV,QGLDµ GRZQ )DFLOLWLHVLQFOXGHDWHPSHUDWXUHFRQWUROOHG PDUNHW DQG DOLJQPHQW ZLWK LQWHUQDWLRQDO FRQWLQXHVWREXLOGµ)XQJFRPPHQWV perishable centre designed for seafood, LQGXVWU\VWDQGDUGVµVD\V$OEHUW)XQJFDUJR ´:H KDYH LQFUHDVHG IUHLJKWHU VHUYLFHV ÁRZHUVIUXLWDQGVKRUWOLIHYHJHWDEOHV services 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OLQHVVXSSOHPHQWHGE\VRPHQHZUHJLRQDO :KLWHKHDG VD\V ´:H KDYH GLVFXVVHG 6&6&·V+R&KL0LQKIDFLOLW\ FXVWRPHUV ‘Built to the highest standards’ RSSRUWXQLWLHV RYHU WKH ODVW WR ´7KH*XOIFDUULHUVKDYHDOOVKRZQYHU\ PRQWKV7KHVHDLUSRUWVKDYHEXLOWPRGHUQ LPSUHVVLYHJURZWKDQGWKH86WUDGHKDV FDUJRIDFLOLWLHVEXWWKH\·UHQRWVHWXSOLNH FRPHEDFNµKHVD\V´7KHODVWTXDUWHURI XVDQGQRWDVKLJKO\DXWRPDWHGµ ZDVSUHWW\JRRGWKRXJKZH·UHQRW +H FRQWLQXHV ´7KH\ KDYH DQ DEXQ NLFNLQJWKHEDOORIIWKHSODQHWµ dance of land and people, so they can :LWKKDQGOLQJFDSDFLW\DW+RQJ.RQJ,Q UHO\RQPDQXDOODERXUDQGDIHZIRUNOLIWV WHUQDWLRQDOQRZDWDZKRSSLQJPLOOLRQ $SDUWIURP6KDQJKDL%HLMLQJDQGRQHRU WRQQHVZD\DKHDGRIWKHFXUUHQWPLO WZRRWKHUVWKH\KDYHQRQHHGWRORRNDW OLRQWRQQHWKURXJKSXW:KLWHKHDGDGPLWV KHDY\LQYHVWPHQWLQWHFKQRORJ\µ “It has become an extremely competitive $Q\ PDLQODQG PRYH E\ +DFWO ´ZRXOG PDUNHW7KHDLUOLQHVDUHLQFRQWUROµ KDYHWRPDNHFRPPHUFLDOVHQVHIRURXU +DFWOUHPDLQVWKHELJJHVWFDUJRKDQGOHU VKDUHKROGHUVµ :KLWHKHDG VD\V ´:H DW +RQJ .RQJ ,QWHUQDWLRQDO DKHDG RI &D 6RPH REVHUYHUV KDYH VXJJHVWHG WKDW ZRXOG ORYH WR PDNH VHQVLEOH LQURDGV WKD\3DFLÀF6HUYLFHV$VLD$LUIUHLJKW7HUPL +DFWOFRXOGH[SRUWLWVNQRZKRZWRWKH&KL SUHIHUDEO\WKURXJKDQHTXLW\VWDNHUDWK QDODQGWKHLQWHJUDWRUVZLWKWKHLULQKRXVH nese mainland and help fast-growing inland HUWKDQRQDPDQDJHPHQWFRQWUDFW²EXW facilities. Operational stability will be the ini- DLUSRUWV VXFK DV WKH ¶WKUHH &V· WR UHDFK WKHTXHVWLRQLVZKDWYDOXHZHFRXOGDGG WLDOSULRULW\IRU&DWKD\3DFLÀFEXWLWZLOOVRRQ ZHVWHUQKDQGOLQJVWDQGDUGV&KLQD1DWLRQDO DWDLUSRUWVWKDWGRQ·WVKDUHRXURSHUDW EHDFWLYHO\VHHNLQJWKLUGSDUW\EXVLQHVV $YLDWLRQ&RUSDVKDUHKROGHULQ+DFWO LQJPRGHOµQQQ Focus on process improvement IT infrastructure support ePic Revolutionizing the cargo handling industry $"4PGGFSTSFWPMVUJPOBSZ*5TPMVUJPOTGSPNXBSFIPVTFmPPSUPEFDJTJPONBLFS F1JDJTBTUBUFPGUIFBSUDBSHPNBOBHFNFOUTZTUFNUIBUFOBCMFTQBQFSMFTTDBSHPQSPDFTTJOHBOESFBMUJNFWJTJCJMJUZ JOUPUIFPQFSBUJPOTWJBGPSLMJGUNPVOUFEJ1BET'SFJHIUTUBUVT QBZNFOU EJTDSFQBODJFT QIPUPT USVDLFSXBJUJOHUJNFT BOENPSFBSFBWBJMBCMFPOMJOFUPFWFSZPOFJOUIFDBSHPIBOEMJOHDIBJO Don’t just outsource to save costs. Partner to improve everything. To learn more visitXXXDBTVTBDPNPSDPOUBDUPhil Jensen 71#VTJOFTT%FWFMPQNFOU on PSFNBJMQKFOTFO!DBTVTBDPN (- :8I>F8@IGFIKJ 8@IC@E<J 8`ic`e\`ek\im`\n 26 Marcel de Nooijer outlines the operational priorities of Martinair Holland and KLM Cargo 8@IC@E<:8I>FI nternational air cargo saw ´7KHUH LV JURZLQJ D VWURQJ ÀQDO TXDUWHU LQ FRQÀGHQFHEXWZH LQFOXGLQJ D IDU PRUH DOVRNQRZWKDWWKHUH I VXVWDLQHGSUH&KULVWPDVSHDN ZHUHDFRXSOHRIVLJQLÀ SHULRG WKDQ LQ WKH SUHYLRXV WZR FDQWSURGXFWVWKDWZHUHGULYLQJ \HDUV %XW GHVSLWH WKLV HQGRI\HDU VXUJH FRQVXPHU EHKDYLRXU SDUWLFXODUO\ LQ WKH HVSHFLDOO\LQYROXPHVIURP$VLDLWLVSURE KROLGD\VHDVRQµ DEO\IDLUWRVD\WKDWWKHFKDPSDJQHFRUNV .H\SURGXFWODXQFKHVLQFOXGLQJWKHODW KDYH QRW VWDUWHG SRSSLQJ \HW LQ DLUOLQH HVW6RQ\3OD\6WDWLRQDQG;ER[KHOSHGGULYH FDUJRRIÀFHV VSLNHV LQ YROXPHV IURP &KLQD DQG VRPH ´:HGLGVHHDQHQFRXUDJLQJXSWXUQEXW RWKHU $VLDQ RULJLQ SRLQWV FRQWULEXWLQJ WR ZH GRQ·W NQRZ KRZ VXVWDLQDEOH WKDW LVµ JURZWKRILQ2FWREHUDQGLQ1R VD\V 'HV 9HUWDQQHV KHDG RI ,$7$ &DUJR YHPEHUDQGDLQFUHDVHLQ'HFHPEHU 7KLVKHOSHGWRVXVWDLQDVL[ZHHNGHPDQG $LUOLQHIRFXV &DWKD\3DFLÀF ERRP IURP ODWH 2FWREHU DQG WKURXJKRXW )XOO\HDUWUDIÀFIRU&DWKD\3DFLÀF 1RYHPEHU LQWR 'HFHPEHU ² D VLJQLÀFDQW and Dragonair in 2013 fell by 1.5% LPSURYHPHQW IURP WKH WKUHHZHHN SHDN Will Waters talks compared to the previous year to 1.54 million tonnes, while capacity VHDVRQV RI WKH SUHYLRXV WZR \HDUV )XOO with Des Vertannes, was up by 1.7%. Cargo and mail \HDUÀJXUHVIRUVKRZRYHUDOOJURZWK revenue tonne km declined by 2.1% RI ZRUOGZLGH LQ )UHLJKW 7RQQH .LOR to 8,750 million RFTK. global head of PHWUHV )7.V ZLWK(XURSHDQFDUULHUVVHH After seeing strong demand throughout November, the seasonal LQJWKHELJJHVWLPSURYHPHQWVDPRQJWKH cargo at IATA, air freight peak began to fade in WUDGLWLRQDO¶ELJWKUHH·DYLDWLRQUHJLRQV mid-December. about recent 9HUWDQQHVQRWHVWKDWDQRWKHUHQFRXU Cathay took delivery of three more Boeing 747-8F freighters in December DJLQJ VLJQ LV DQ LPSURYHPHQW LQ 86 DLU trends and longer- as part of its drive to improve opera- FDUJR1RUWK$PHULFDQFDUULHUVUHSRUWHG term expectations WLRQDOHIÀFLHQF\SDUWLFXODUO\RQNH\ D \HDURQ\HDU LPSURYHPHQW LQ WUDQVSDFLÀFURXWHV IUHLJKW GHPDQG LQ 1RYHPEHU IROORZLQJ for air freight Jgi`e^&Jldd\i)'(+:8I>F8@IGFIKJ 8@IC@E<J INTERNATIONAL - DFWLYLW\ LQGLFDWRUV LQ WKH PDQXIDFWXULQJ Airline focus: Air China SCHEDULED FREIGHT VHFWRU KDYH EHHQ LPSURYLQJ LQ UHFHQW TONNE-KM FLOWN (2012) Total tonnes carried in 2013: 1.456 PRQWKV UHFRYHULQJ IURP DQ\ DGYHUVH million tonnes, a decline of 0.3% RANK AIRLINE MILLIONS compared with 2012. LPSDFWV RI WKH JRYHUQPHQW VKXWGRZQ LQ 1 EMIRATES 9, 319 Domestic: 926,237 (+1.5%) 2FWREHU$OWKRXJKWKH\DUHVWLOOEHORZWKH 2 CATHAY PACIFIC 8, 433 International: 465,269 (-1%). OHYHOV VHHQ DW WKH VWDUW RI UHFHQW 3 KOREAN AIR 8, 099 Load factor: 58.0% in 2013, (-1.2%). PRQWKVKDYHDOVRVKRZQDSLFNXSLQ86 4 FEDERAL EXPRESS 7, 787 WUDGH YROXPHV DQG LI WKDW WUHQG FRQWLQ 5 LUFTHANSA 7, 170 XHVWKHUHFRXOGEHVRPHLPSURYHPHQWLQ 6 SINGAPORE AIRLINES 6, 694 Airline focus: Singapore Airlines Cargo WKHGHPDQGEDFNGURS 7 UPS AIRLINES 5, 452 )LJXUHVDUHIRUWKHÀUVWKDOIRIÀQDQ 9HUWDQQHV VD\V RQH PDMRU FRQFHUQ LV 8 BRITISH AIRWAYS 4, 728 cial year 2013-14 (and a year-on- ZKDW LV KDSSHQLQJ WR ZRUOG WUDGH JURZWK 9 CHINA AIRLINES 4, 538 year comparison with H1 2012-13): ZKLFK KDV VORZHG WR WKH VDPH OHYHOV DV 10 EVA AIR 4, 470 Cargo and mail tonnes carried: 11 CARGOLUX 4, 403 557,300 (-4.2%). *'3 H[SDQVLRQ ² QRW DW WZLFH WKH SDFH 12 QATAR AIRWAYS 4, 323 Cargo load (million tonne-km): RI*'3JURZWKDVLWKDGEHHQLQWKHSDVW 13 AIR FRANCE 4, 306 3,249 (-6.3%) ² RZLQJ WR ULVLQJ WUDGH EDUULHUV DQG ¶RQ 14 ASIANA 3, 689 Gross capacity (million tonne-km): VKRULQJ·RISURGXFWLRQ 5,243 (-5.2%) 15 KLM 3, 523 +RZHYHU,$7$LVRSWLPLVWLFWKDWWKHSRVL 16 AIR CHINA 3, 288 Cargo load factor: 62% (down 0.7 percentage points) WLYHRXWFRPHRI'HFHPEHU·V:720LQVWHULDO 17 LAN AIRLINES 3, 090 Cargo yield (cents/ltk): 32.4 (-2.4%) &RQIHUHQFHLQ%DOLZLOOKHOSWRUHLJQLWHZRUOG 18 DELTA AIRLINES 2, 880 Cargo unit cost (cents/ctk): 19 UNITED AIRLINES 2, 672 WUDGH WKDQNV WR DJUHHPHQW RQ D SDFNDJH 21.9 (-10%) 20 ETIHAD AIRWAYS 2, 642 RILVVXHVGHVLJQHGWRVWUHDPOLQHWUDGHSDU Cargo breakeven load factor: WLFXODUO\IRUGHYHORSLQJFRXQWULHVDQGOHDVW 21 THAI AIRWAYS 2, 610 67.6% (2 percentage points lower) 22 CHINA SOUTHERN 2, 573 GHYHORSHGFRXQWULHVDQGKHOSGHYHORSPHQW AIRLINES RQIURPDULVHRILQ2FWREHU%RWK PRUH JHQHUDOO\ 2I FRXUVH DQ\ LPSURYH 23 MARTINAIR 2, 459 WKHVH ÀJXUHV DUH D PDMRU LPSURYHPHQW PHQWV LQ ZRUOG WUDGH UHVXOWLQJ IURP WKHVH 24 NIPPON CARGO AIRLINES 2, 393 RYHU WKH SHUIRUPDQFH LQ WKH ÀUVW QLQH LQLWLDWLYHVZLOOWDNHVRPHWLPHWRDSSHDU 25 AIR BRIDGE CARGO 2, 378 PRQWKV RI ODVW \HDU LQ ZKLFK YROXPHV ,Q WKH PHDQWLPH WKH VSLNHV LQ IRXUWK 26 ALL NIPPON AIRWAYS 2, 347 27 QANTAS AIRWAYS 2, 119 GHFOLQHG\HDURQ\HDUOLPLWLQJWKH TXDUWHUFRQVXPHUDFWLYLW\DQGDLUFDUJRYRO 28 AMERICAN AIRLINES 2, 080 IXOO\HDUGHFOLQHWR XPHVLQGLFDWHWKDW´SHRSOHDUHEHJLQQLQJWR 29 MALAYSIA AIRLINES 1, 841 ,$7$ VD\V 1RUWK $PHULFDQ EXVLQHVV RSHQXSWKHLUSXUVHVµ9HUWDQQHVVXJJHVWV 30 TURKISH AIRLINES 1, 828 31 SAUDI ARABIAN AIRLINES 1, 746 period with a growth rate of 4.0% 32 VIRGIN ATLANTIC 1, 462 THE LONG VIEW CAGR, with the intra-Africa market 33 POLAR AIR CARGO 1, 442 ATA’s Airline Industry Forecast predicted to expand at an average 34 AIR CANADA 1, 394 I2013-2017, published in December, rate of 5.3%. predicts that international freight 35 JAPAN AIRLINES 1, 366 Not far behind Africa are the Mid- volumes will grow by around 17% over 36 SWISS 1, 330 dle East and Latin America regions, WKHQH[WÀYH\HDUV,WVD\VWKDWWKLV 37 TNT AIRWAYS 1, 216 “consensus” outlook “incorporates a both forecast to have an average 38 SOUTH AFRICAN AIRWAYS 1, 143 conservative estimate of the recovery &$*5RIDQG$VLD3DFLÀFDW 3.5% per annum, followed by North 39 IBERIA 1, 102 in global economic activity and world trade volumes over the coming years”. America and Europe at 2.7% CAGR 40 AIR NEW ZEALAND 964 and 2.4% CAGR, respectively According to this analysis, interna- 41 AEROFLOT 893 tional freight volumes are expected Vietnam is expected to be the 42 JET AIRWAYS 801 WRJURZDWDÀYH\HDUFRPSRXQG fastest growing country for air freight 43 ETHIOPIAN AIRLINES 715 annual growth rate (CAGR) of 3.2%. volumes over the forecasting horizon, 44 FINNAIR 690 The largest (US) and the third larg- with a CAGR of 6.6% per annum, est (China) air freight markets are followed by Bangladesh (5.7% CAGR), 45 TAM AIRLINES 593 predicted to add more than one Brazil (5.5% CAGR), Ethiopia (5.3% 46 SAS SCANDINAVIAN 507 million additional tonnes each over CAGR), and Peru (5.2% CAGR). AIRLINES the forecast period. As a result, China %\WKHÀYHODUJHVWLQWHUQD 47 EL AL 486 will supplant Germany as the second tional air freight markets will be the 48 ALITALIA 434 largest air freight market in 2017. United States, China, Germany, Hong 49 HONG KONG AIRLINES 410 Africa is forecast to be the fastest Kong, and the UAE, according to the 50 SRI LANKAN AIRLINES 375 growing region over the forecast forecast. O )' :8I>F8@IGFIKJ 8@IC@E<J AIRLINE CARGO BOSSES was a very strong year for air freight. DOMESTIC - SCHEDULED IN OPTIMISTIC MOOD However, the yield picture is less rosy, FREIGHT TONNE-KM FLOWN from an airline perspective. Consistent (2012) ATA’s quarterly survey of airline CFOs with excess capacity and weak load Iand heads of cargo in January has factors, responses from airline heads of RANK AIRLINE MILLIONS revealed cargo chiefs to be in an cargo suggest that overall yields con- 1 FEDERAL EXPRESS 8, 321 increasingly positive mood. tinued to decline in the fourth quarter 2 UPS AIRLINES 4, 964 of 2013, despite volume improvements. More than half of respondents 3 CHINA SOUTHERN 1, 333 reported seeing growth in air freight More than one third (34%) of respond- volumes over the previous three ents reported that their fourth-quarter AIRLINES months, with only 22% seeing volumes cargo yields declined, compared with 4 AIR CHINA 990 GHWHULRUDWH²ÀJXUHVWKDWDUHEURDGO\ 18% that saw a yield increase and 47% 5 POLAR AIR CARGO 480 that reported no change. However, consistent with wider industry air 6 HAINAN AIRLINES 446 freight volume data. IATA says that WKHVHÀJXUHVDUHDQLPSURYHPHQWRQ the survey on average covers 30% WKHÀJXUHVLQWKH2FWREHUTXDUWHUO\ 7 ALL NIPPON AIRWAYS 428 of industry revenues, “so it is a solid survey, in which 42% of respondents 8 UNITED AIRLINES 391 representative sample”. reported yields declining in the previous 9 SHENZHEN AIRLINES 389 The outlook for cargo volumes also three months. 10 AMERICAN AIRLINES 343 continues to improve, with more than According to airline cargo bosses, 11 JAPAN AIRLINES 322 two thirds of respondents expecting the outlook for cargo yields shows 12 DELTA AIRLINES 316 an increase in demand over the next some slight potential for improve- 12 months, while just 2.6% expect a ment. More than 22% of respondents 13 TRANSAERO AIRLINES 269 decline and 30% expect no change. expect yields to increase this year 14 XIAMEN AIRLINES 226 These results indicate the greatest level compared with almost 17% that 15 TAM AIRLINES 198 of expectation of growth among airline expect them to decline, while 61% 16 GARUDA INDONESIA 194 heads of cargo since mid-2010, which expect no change. O 17 AEROFLOT 193 18 SOUTHWEST AIRLINES 181 Airline focus: Virgin Atlantic 19 QANTAS AIRWAYS 177 20 HAWAIIAN AIRLINES 132 FTK ATK LF 21 GOL AIRLINES 117 2013 1,681 million (+3.3%) 2,205 million (-6.9%) 76% (+7 points) 22 VIETNAM AIRLINES 105 2012 1,627 million 2,369 million 69% 23 AIR CANADA 98 24 JET AIRWAYS 82 ´%XWWKHSUREOHPKDVEHHQWKDWWKHUHLVQR XQFKDQJHGLQIURPWKHLUOHYHO 25 ALASKA AIRLINES 80 FRQÀGHQFHLQWKHPDUNHWWKDWWKLVLVJRLQJ RI 86 ELOOLRQ EURDGO\ WKH VDPH DV LQ 26 CORSAIR 77 WRFRQWLQXHLQWR,WKLQNLWLVVWLOOJRLQJ DQG DURXQG EHORZ WKHLU 27 JUNEYAO AIRLINES 75 WREHDYHU\FKDOOHQJLQJ\HDU3HRSOHDUHVWLOO SHDNRIELOOLRQ 28 AIR INDIA 75 PDQDJLQJWKHLUFDSDFLW\H[SHFWDWLRQVSUHWW\ ´,I\RXORRNDWWKHZD\WKLQJVKDYHJRQH 29 SAUDI ARABIAN AIRLINES 69 SUXGHQWO\DQGWKDWLVVLPSO\EHFDXVHWKHUH LQ \LHOG GHFOLQHG E\ \HDURQ 30 SIBERIA AIRLINES 60 31 US AIRWAYS 50 LVDQH[SHFWDWLRQRIFDSDFLW\JURZWKZLWKWKH \HDU7KHH[SHFWDWLRQIRULVDIXUWKHU 32 UT AIR 46 QHZ FDUJRIULHQGO\ DLUFUDIW EHLQJ GHOLYHUHG GHFOLQHRI RYHUWKHSUHYLRXV\HDU6R 33 KOREAN AIR 45 LQDQGµ WKRVH DUH SUHWW\ GHSUHVVLQJ QXPEHUVµ 34 LAN AIRLINES 44 says Vertannes. 35 SOUTH AFRICAN AIRWAYS 43 Yield erosion :RUOG$&'HVWLPDWHVWKDW\LHOGVPHDV 36 THAI AIRWAYS 43 1HZDLUFUDIWGHOLYHULHVDUHH[SHFWHGWRH[ XUHGLQ86'GURSSHGE\LQDO 37 PHILIPPINE AIRLINES 39 SDQG WKH ZRUOGZLGH DLUOLQH ZLGHERG\ DLU WKRXJKPHDVXUHGLQ(XURVRU&1<WKHGURS 38 MALAYSIA AIRLINES 35 FUDIWÁHHWE\LQZLWKWKHDPRXQW ZDVPRUHWKDQ 39 GLOBUS 31 RIDYDLODEOHDLUFDUJRFDSDFLW\PHDVXUHGLQ ,$7$·VH[SHFWDWLRQLVWKDW\LHOGVLQ 40 VIRGIN AUSTRALIA 31 41 IBERIA 28 WRQQHNPH[SHFWHGWRLQFUHDVHE\WKLV ZLOOGURSE\DQRWKHU9HUWDQQHVVD\V 42 AEROMEXICO 28 \HDU,$7$SUHGLFWVWRQQDJHFDUULHGZLOOJURZ WKLV WUHQG RI GHFOLQLQJ \LHOGV FDQQRW FRQ 43 JET BLUE 23 E\ DURXQG WKLV \HDU LQFUHDVLQJ IURP WLQXH REVHUYLQJ WKDW DLUOLQHV DUH SXWWLQJ 44 PIA 23 PLOOLRQWRQQHVLQWRPLOOLRQ LQSODFHYDULRXV\LHOGPDQDJHPHQWPHDV 45 VLADIVOSTOK AIR 22 WRQQHVLQ XUHV LQFOXGLQJ WLJKWHU FRQWURO RI WKHLU FD 46 TURKISH AIRLINES 20 ´6R WKHUH LV JURZWK FRPLQJ EXW LW LV SDFLW\EXWDOVRLQYHVWLQJLQWKHLUKDQGOLQJ 47 JET LITE (INDIA) 19 PRUH WKDQ RIIVHW E\ WKH JURZWK LQ FDSDF FDSDELOLWLHV IRU JURZWK VHFWRUV VXFK DV 48 COPA AIRLINES 14 LW\µ9HUWDQQHVVD\V H[SUHVV DQG WHPSHUDWXUHFRQWUROOHG SURG 49 ASIANA AIRLINES 14 &DUJRUHYHQXHVDUHH[SHFWHGWRUHPDLQ XFWVSDUWLFXODUO\SKDUPDFHXWLFDOSURGXFWV 50 AIR ASTANA 14 Jgi`e^&Jldd\i)'(+:8I>F8@IGFIKJ 8@IC@E<J TOTAL - SCHEDULED 7KHFDUJRFDSDFLW\SDUWQHUVKLSEHWZHHQ Company focus: IAG Cargo FREIGHT TONNE-KM FLOWN ,$* &DUJR DQG 4DWDU $LUZD\V &DUJR KDV (2012) Revenue tonne-km (millions): EHHQ IDFLOLWDWHG E\ 4DWDU $LUZD\V MRLQLQJ BA: 4,646 in 2013 compared with RANK AIRLINE MILLIONS WKH2QH:RUOG$OOLDQFHODWHODVW\HDU´%XW 4,899 in 2012 (-5%). 1 FEDERAL EXPRESS 16, 108 LWLVDOVRWRGRZLWKWKHIDFW4DWDUKDVWKLV Iberia: 1,007 in 2013 compared with 2 UPS AIRLINES 10, 416 1,189 in 2012 (-15.3%). LQFUHDVHG ÁHHW RI IUHLJKWHUV FRPLQJ LQWR 3 EMIRATES 9, 319 Total IAG: 5,653 in 2013 compared WKHPDUNHWSODFHµ9HUWDQQHVYHQWXUHV´,I 4 CATHAY PACIFIC AIRWAYS 8, 433 with 6,080 in 2012 (-7%). \RXFDQGHSOR\WKDWIUHLJKWHUÁHHWEHWZHHQ 5 KOREAN AIR 8, 144 PDUNHWVWKDWEHQHÀWERWKLWVHOIDQGDQDO 6 LUFTHANSA 7, 175 OLDQFHPHPEHULWPDNHVDEVROXWHVHQVHµ 7 SINGAPORE AIRLINES 6, 694 Airline focus: China Airlines 9HUWDQQHVEHOLHYHVWKLVNLQGRIGHFLVLRQ 8 BRITISH AIRWAYS 4, 732 Total cargo carried: Estimated 9 CHINA AIRLINES 4, 538 645,435 tonnes in 2013 compared FDQDOVRKHOSWRVWDELOLVH\LHOGV 10 EVA AIR 4, 470 with 634,642 tonnes in 2012 (+2.4%) ´,I\RXDUHRSHUDWLQJDQGKDYHJRWVROH 11 CARGOLUX 4, 403 Revenue tonne-km (millions): UHVSRQVLELOLW\IRUÀOOLQJXSWKHSODQHWKHQ 4,828 in 2013 compared with 4,854 in 12 QATAR AIRWAYS 4, 323 2012 (-0.005%) \RXKDYHDWHQGHQF\WRFKDVHWKHWRQQHV,I 13 AIR FRANCE 4, 308 Available tonne-km (millions): \RXDUHDEOHWRVKDUHWKHFDSDFLW\DQG\RX 14 AIR CHINA 4, 278 6,843 in 2013 compared with 6,773 in GRQ·W KDYH TXLWH DV PXFK FDSDFLW\ WR ÀOO 15 CHINA SOUTHERN 3, 906 2012 (+0.01%) WKHQ\RXFDQDIIRUGWREHDOLWWOHELWPRUH AIRLINES 16 ASIANA AIRLINES 3, 703 SUXGHQWZLWK\RXUSULFLQJ$QG,WKLQNWKDW 17 KLM 3, 523 ,QGHHGDFFRUGLQJWR:RUOG$&'3KDUPD LVH[DFWO\ZKDWLVJRLQJWRKDSSHQ 18 DELTA AIRLINES 3, 196 ZDV WKH RQO\ SURGXFW FDWHJRU\ WR DFKLHYH ´6R,ZRXOGQ·WEHVXUSULVHGLIZHEHJDQ 19 LAN AIRLINES 3, 134 D\LHOGLQFUHDVHLQXSDURXQG WR VHH VRPH DFWLRQV ZKHUH \LHOG VWDELOLW\ 20 UNITED AIRLINES 3, 063 year on year. LVPRUHWKHRUGHURIWKHGD\DVRSSRVHG 21 ALL NIPPON AIRWAYS 2, 775 7LJKWHUFRQWURORYHUFDSDFLW\DQGWKHLP WR\LHOGGHFOLQH$QGWKDWLVZKDWLVOLNHO\ 22 THAI AIRWAYS 2, 653 SURYHPHQWLQYROXPHVPHDQWWKDWDYHUDJH WRKDSSHQWKLV\HDU ,WKLQNWKHUHZLOOEHD 23 ETIHAD AIRWAYS 2, 642 ORDG IDFWRUV WXUQHG XS WRZDUG WKH HQG RI VWDELOLW\RI\LHOGVUDWKHUWKDQDGHFOLQHRI 24 MARTINAIR 2, 459 WKHWDNLQJIXOO\HDUDQQXDODYHUDJH \LHOGµ$WOHDVWDPRQJWKRVHWKDWDUHSURDF 25 AMERICAN AIRLINES 2, 422 26 NIPPON CARGO AIRLINES 2, 393 ORDG IDFWRUV WR D VOLJKW LPSURYH WLYHHQRXJKWRWU\WRPDQDJHWKRVHWKLQJV 27 AIR BRIDGE CARGO 2, 378 PHQWFRPSDUHGZLWKOHYHOV ´$EVROXWHO\%XWLI\RXORRNDWWKHPDMRU 28 QANTAS AIRWAYS 2, 297 GHVSLWH VLJQLÀFDQW ZHDNQHVV WKURXJKRXW SOD\HUVQHWZRUNSURÀWDELOLW\LVFULWLFDODQG 29 POLAR AIR CARGO 1, 922 HDUOLHUSDUWVRIWKH\HDUZKHQH[FHVVFD WKHFDUJRLQWKHEHOO\LVDYHU\LPSRUWDQW 30 MALAYSIA AIRLINES 1, 876 SDFLW\HQWHUHGWKHPDUNHWWKURXJKWKHSDV FRQWULEXWRUWR\RXUURXWHSURÀWDELOLW\,WKLQN 31 TURKISH AIRLINES 1, 848 VHQJHUEXVLQHVV WKLV LV ZK\ PRUH DQG PRUH DLUOLQHV DUH 32 SAUDI ARABIAN AIRLINES 1, 815 ´7KHPDMRUDLUOLQHVDUHYHU\PXFKORRN SXWWLQJWKHIRFXVRQWKHLUFDUJREXVLQHVV 33 JAPAN AIRLINES 1, 688 LQJDWWKHFDSDFLW\WKDWWKH\DUHSXWWLQJRQ ORRNLQJ WR UHYDPS LW ORRNLQJ WR VHH ZKDW 34 AIR CANADA 1, 492 RIIHUWRGD\DQGQRWFKDVLQJPDUNHWVKDUH 35 VIRGIN ATLANTIC 1, 462 )XQGDPHQWDOO\ WKH\ DUH ORRNLQJ DW WKHLU Airline focus: Delta 36 SWISS 1, 331 Revenue tonne-km (millions): 3,431 37 TNT AIRWAYS 1, 216 RZQ RSHUDWLRQDO FRVWµ VD\V 9HUWDQQHV million in 2013 compared with 3,482 38 SOUTH AFRICAN AIRWAYS 1, 186 ´ )) :8I>F8@IGFIKJ 8@IC@E<J 8@IC@E<:8I>FI Airline focus: Lufthansa Cargo Revenue tonne-km (millions): 8,731 in 2013; 8,728 in 2012 (+0.0%). Available tonne-km (millions): 12,490 in 2013; 12,531 in 2012 (-0.3%). Average cargo load factor: 69.9% in 2013; 69.7% in 2012 (+ 0.2 percentage points). Cargo tonnage carried: 1.715million tonnes (estimated) in 2013; 1.732 million tonnes in 2012 (-1%). Cargo revenues: ½ELOOLRQLQ ÀJXUHVSXEOLVKHGLQ0DUFK Main hub handling throughput: 1.4 million tonnes (Frankfurt) Changes to products & services in 2013: 1HZÁLJKWVWR*XDGDODMDUD&KRQJTLQJ7HO$YLYDQG/LPD7KHÀUVWWZRRIÀYH new B777 freighters delivered. GSM trackers now available for all customers. Karl Ulrich Garnadt Electronic Consignment Security Declaration introduced in Germany. Initiatives or investments in cargo handling capabilities or service quality in 2013: 6LJQLÀFDQWLQYHVWPHQWVLQTXDOLW\DQGRQWLPHSHUIRUPDQFH ‘If the welcome trends of 3ODQQHGDLUFUDIWÁHHWFKDQJHVIRU recent weeks continue, 7ZRIXUWKHU%)ZLOOMRLQWKHÁHHWLQWKHÀUVWKDOIRI Cool-chain capabilities: we can feel optimistic Lufthansa Cargo Cool Centre in Frankfurt; Pharma hub in Hyderabad. about the year’ Overview: Lufthansa Cargo continued to demonstrate strict demand-driven capacity management in the challenging market environment of 2013, which was char- acterised by muted demand in global air freight markets, as in 2012. This allowed WKHFRPSDQ\WRERRVWORDGIDFWRUVDQGUHPDLQRQHRIWKHIHZSURÀWDEOHFDUJR 9HUWDQQHVFRQWLQXHV ´,WKLQNWKDWDLUFDUJR airlines in the world in 2013. XQGHUVWDQGV WKH FKDOOHQJHV LW IDFHV DQG &(2.DUO8OULFK*DUQDGWFRPPHQWV ´:HDUHDEOHWRKROGRXURZQHYHQLQDGLIÀFXOW QRZ ZH DUH JHWWLQJ DOO RI WKH DFWRUV ZLWKLQ market environment and have laid the basis in 2013 for important developments in WKHDLUFDUJRVXSSO\FKDLQ²WKHIRUZDUGHUV our company. If the welcome trends of recent weeks in global air cargo markets, particularly in Asia, continue, then we can feel optimistic about the new year.” WKH DLUOLQHV WKH JURXQG KDQGOHUV ² ÀQDOO\ ZRUNLQJWRJHWKHUUHDOLVLQJWKDWZH·YHJRWWR FRPSUHVVWLPHZH·YHJRWWRJDLQHIÀFLHQFLHV HIÀFLHQFLHVWKH\FDQEULQJIURPLWµ WR WDNH WKLV PXFK PRUH VHULRXVO\ ² WKH\ ZH·YHJRWWREHPRUHUHOLDEOHZHKDYHJRWWR )RUH[DPSOHDLUOLQHVOLNH7KDLDQG8QLWHG FDQ VHH WKH DOOURXQG HIÀFLHQF\ JDLQ WKDW SXW WKH LQYHVWPHQWV LQWR LQIUDVWUXFWXUH DQG WKDW KDG LQLWLDOO\ GHIHUUHG LQYHVWPHQWV LQ HFDUJREULQJVDQG,H[SHFWWKDWWREHWKH QHZVHUYLFHV,DPTXLWHHQFRXUDJHGE\WKDW WKHLU ,7 KDYH QRZ LQVWDOOHG QHZ SODWIRUPV RUGHURIWKHGD\LQZLWKRXWDVKDGRZ ²,MXVWZDQWWRVHHDOLWWOHELWPRUHDFFHOHUD 9HUWDQQHV VD\V WKHUH LV DOVR D UHQHZHG RIDGRXEW,H[SHFWWRVHHDJUHDWGHDOPRUH WLRQLQJHWWLQJWRWKHHQGJDPHµ VWURQJHU IRFXV RQ WKH RSHUDWLRQDO ÁRRU DFFHOHUDWLRQLQWKHSHQHWUDWLRQOHYHOVRIWKH ORRNLQJDWZKHUHHIÀFLHQF\EHQHÀWVFDQEH HDLUZD\ELOOWKDQZHKDYHKDGSUHYLRXVO\µ Ending the cycle IRXQG´,I\RXORRNDWWKHEXVLQHVVDQGZKDW 7KHKRSHLVWKDWWKLVFDQJLYHVRPHUHOLHI ,Q WKH SDVW FRPSDQLHV KDG VXUYLYHG ZLWK LVGULYLQJH)UHLJKWDQGWKHHDLUZD\ELOOZH DJDLQVW \LHOG GHFOLQHV ´,W LV WKH RQO\ ZD\ RXW PRGHUQLVLQJ E\ GRLQJ WKH VDPH WKLQJ DUHÀQDOO\VWDUWLQJWRVHHWUDFWLRQLQWKHODVW WKDW\RXFDQPHDVXUDEO\WDNHRXWFRVWV,I IRU\HDUV%XWWKHQHZFRPPHUFLDOUHDOLWLHV TXDUWHU RI WKH \HDU EHFDXVH SHRSOH DUH \RXZDQWWRWDNHRXWFRVWV\RXKDYHWRVWRS DQGSUHVVXUHVIURPUHJXODWRU\DQGVHFXULW\ EHJLQQLQJ WR VHH WKH HIÀFLHQF\JDLQV WKDW GRLQJWKLQJVWKHZD\\RXKDYHVLQFHWLPHLP DXWKRULWLHVZLOOQRORQJHUSHUPLWWKLV FRPHZLWKHOHFWURQLFWUDGLQJµ PHPRULDODQGLWVKRXOGQ·WUHTXLUHVWDIIDW ´5HJXODWLRQ DQG WKH QHHG WR WUDQVPLW )RUH[DPSOHHDLUZD\ELOOSHQHWUDWLRQ´RQ DLUOLQHKDQGOLQJIDFLOLWLHVWRKDYHWRUHNH\LQ DGYDQFH HOHFWURQLF LQIRUPDWLRQ VHFXULW\ IHDVLEOH ODQHVµ WRRN D VLJQLÀFDQWVWHS XS GDWD HOHPHQWV WKDW FDQ EH WUDQVPLWWHG VR GHFODUDWLRQVDQGDGYDQFHVFUHHQLQJGDWD WRZDUGVWKHHQGRIWKH\HDULQFUHDVLQJE\D HDVLO\µKHVD\V DOORIWKLVLVJRLQJWRSURYRNHHYHU\ERG\WR ZKROHSHUFHQWDJHSRLQWLQDVLQJOHPRQWKWR ´$QGZKHQ\RXWDNHDORRNDWZKDWHOVHLW KDYHWRSOD\WKHGDWDH[FKDQJHJDPH UHDFKLQ1RYHPEHUJOREDOO\ FDQGRLQWHUPVRIDFFHOHUDWLQJWKHSURFHVV ´6R P\ YLHZ LV WKDW ZKHQ WKH UHJXODWRU $OWKRXJKWKLVÀJXUHLVZHOOVKRUWRIWKHWDU RIPRYLQJFDUJRLWGLPLQLVKHVWKHWLPHWKDW VWDUWV WR FRQVLVWHQWO\ GHPDQG WKH W\SH RI JHWVVHWDWWKHVWDUWRIWKLVLVWKHÀUVW WUXFNVZDLWDWFDUJRVKHGVHWF$OORIWKLV GDWDWKDWWKH\DUHORRNLQJIRUZHZLOOEHJLQWR WLPHWKHUHKDVHYHUEHHQDPRQWKRQPRQWK UHGXFHVFRVWVDQGLQFUHDVHVWKHSURGXFWLY VHHDFRPSOHWHO\QHZW\SHRIEHKDYLRXU$QG LQFUHDVH RI D IXOO SHUFHQWDJH SRLQW ´6R LW LW\RIWKHSHRSOH\RXHPSOR\²DQGWKDWKDV LIWKDWLVZKDWLVQHHGHGWRSURPRWHLQGXVWU\ VKRZV \RX WKDW SHRSOH DUH QRZ EHJLQQLQJ JRWWRKHOSWKHRYHUDOOERWWRPOLQHµ FKDQJHWKHQDOOWKHEHWWHUIRULWµQQQ )+ :8I>F8@IGFIKJ 8@IC@E<J Marcel de Nooijer, MD of Martinair Holland and EVP of KLM Cargo, outlines his operational priorities for 2014, including deepening partnerships with handling and trucking suppliers for long-term mutual gains 8@IC@E<@EK )- :8I>F8@IGFIKJ 8@IC@E<J arcel de Nooijer wears the authorities to push on security matters, iPhone app that allows customers to check several hats within digitalisation is the right answer. But it is the status of their shipment, at the master the multi-airline or- crucial that we do it from an industry per- DLUZD\ELOOOHYHO´&XVWRPHUVZDQWWRNQRZ M ganisation that is Air spective in a way that mitigates mistakes what is happening with their cargo, where France-KLM-Martinair being made, enabling us to offer a better LWLVDQGLWVVWDWXV,IZHFDQPDNHXVHRI Cargo. His role as managing director of quality product to customers.” these innovations and digitalisation, as an Martinair Holland gives him responsibil- He is proud of his organisation’s own industry but also as a cargo carrier, we can ity for all of the group’s Schiphol-based UHFHQW HIIRUWV EXW VD\V WKH WUXH EHQHÀWV offer that kind of added value.” freighter operations, and as executive vice RIDQ\HIÀFLHQF\LPSURYHPHQWVZLOORQO\EH 7KH EHQHÀWV FDQ DOVR EH VHHQ LQ WKH president of KLM Cargo he is also head of seen when the air cargo chain goes totally FRPSDQ\·V ODWHVW FXVWRPHU VXUYH\ ´:H the cargo operations of KLM, including var- SDSHUOHVV´7KHUHZHDUHVHHLQJDSRVLWLYH saw for the second year in a row that we ious legal and human resources functions. trend, but it is still less than 1%.” improved our customer rating,” says de Effectively, he is responsible for all of ,QWKHPHDQWLPHKHVD\VWKHFRPSDQ\ 1RRLMHU´7KHUHLVDOZD\VURRPIRUIXUWKHU the Schiphol-based cargo operations of KDV VHHQ QRWLFHDEOH RSHUDWLRQDO EHQHÀWV improvements and as a carrier you should Air France-KLM-Martinair, with the group’s IURPLWVRZQLQWHUQDOLQLWLDWLYHWR´FRPSXW QHYHUEHVDWLVÀHG%XWZHKDYHDYHU\JRRG cargo commercial activities under the HULVHµ LWV GRFXPHQWDWLRQ DW 6FKLSKRO ´LQ track record there.” watch of Eelco van Asch and the Paris- VXFKDZD\WKDWE\PHDQVRIRXU,7V\VWHP And these kinds of innovations also gen- based cargo operations controlled by Alain ‘Chain+’, we have a real-time warehous- HUDWHWDQJLEOHÀQDQFLDOEHQHÀWV´0LVWDNHV Malka. need to be repaired, which costs man- De Nooijer outlines two main overall power, time, and capacity, and if you can operational issues facing the air cargo prevent that, the knife cuts at two ends: business at the moment: cost pressures \RXKDYHDVDWLVÀHGFXVWRPHUEXWDOVR\RX and digitalisation – although both are, es- reduce the cost of ‘non-quality’,” de Nooi- VHQWLDOO\DERXWLPSURYLQJHIÀFLHQF\´,QD jer says. world that is fairly competitive, and where Preventing mistakes – and knowing customers – for the right reasons – con- where your cargo is at any moment – can tinue to push for higher quality levels, with also ensure that you are a front-runner revenue results under pressure, it is a con- when it comes to security and safety tinuous challenge to weigh and balance measures. our capabilities to offer the ultimate quality ´$QGDVDQLQGXVWU\ZLWKRXUFXVWRPHUV product in an industry that is characterised we can jointly build further opportunities by margins under pressure,” he continues. in ensuring that we work with the correct ´7KDWLVDFKDOOHQJHIRUDLUOLQHVDQGDOORI ing system functioning and ensuring that booking data, and enhance booking reli- the air cargo industry – but a fair challenge, we know where the cargo is in the ware- ability,” he says. As well as improving se- EHFDXVH LW SXVKHV \RX WR FRQWLQXDOO\ ÀQG KRXVHDQGRQZKLFKSDOOHW7KLVKHOSVXVWR curity, knowing where your cargo is at all process improvements, which is important prevent mistakes, and we clearly see the WLPHVDOVRKHOSVWKHHIÀFLHQF\RIUXQQLQJ both commercially and operationally.” EHQHÀWVLQWHUPVRITXDOLW\LPSURYHPHQWLQ DQ DLUOLQH RSHUDWLRQ ´HQVXULQJ WKDW ZH 7KHFKDOOHQJHRIPRYLQJWRZDUGVIXOOGLJ that respect.” ZRUNZLWKRSWLPLVHGÁLJKWVZKLFKLVJRRG itisation is substantial because it requires 7KLVV\VWHPZDVIXOO\LPSOHPHQWHGODVW for business in this competitive world”. so many stakeholders within the industry, April and allows tracking at piece level. including freight forwarders, shippers and ´1RW RXWVLGH RI WKH ZDUHKRXVH \HW ² ZH Pharma focus authorities, to participate. But he sees the still have to work on that. But within the Like many leading carriers, AF-KLM-Martinair SRWHQWLDO EHQHÀWV DV FRQVLGHUDEOH DQG warehouse, we track and trace it.” Cargo has placed a particular recent focus wide-ranging. on the pharmaceuticals sector, opening its Air France-KLM-Martinair Cargo started Quality improvement ‘Pharma 15-25 Cool Center’ last year for this last year with e-air waybill levels of 5-6%, 7KHUHGXFWLRQLQHUURUVKDVDOVRUHÁHFWHGLQ VHJPHQW RI LWV EXVLQHVV ´:H DUH DOVR H[ and ended the year doubling that amount. the company’s Cargo 2000 results, which tending our services to ensure that we report ´7KDW LV D WUHQG ZH ZDQW WR SXUVXH EH LPSURYHGIXUWKHUODVW\HDU´DQGDOVRPHDQV the conditions of the shipments on board,” cause it brings lots of opportunities in that we’ll continue to push for a higher tar- VD\V GH 1RRLMHU ´$W WKH UHTXHVW RI FXVWRP WHUPV RI SURFHVV HIÀFLHQFLHVµ VD\V GH get in 2014”, he says. Another element of ers, we see more technology being available 1RRLMHU ´$OVR ZLWK WKH RQJRLQJ HIIRUWV RI this development has been the rollout of an where will enhance our product with these Jgi`e^&Jldd\i)'(+:8I>F8@IGFIKJ 8@IC@E<J UHFRUGLQJVHUYLFHV7KDWKHOSVFXVWRPHUFRQ The challenge of operating freighters ÀGHQFHDQGLVJRRGIRUEXVLQHVVµ has shifted the emphasis towards Providing the necessary service quality bellyhold capacity to this demanding customer segment can also drive forward service levels and qual- ity for other products and commodity seg- PHQWV ´3URGXFWV VXFK DV ÁRZHUV ZKLFK LV D NH\ HOHPHQW IRU XV FDQ EHQHÀW IURP those recording measurements. Looking for opportunities to strengthen the specif- ics of certain customer requests with cer- tain products from one industry to another, , WKLQN WKDW LV D JDPH WKDW DLUOLQHV FDQ clearly play and should play.” Good distribution practice He says the importance of the pharma and life-science segment has meant the carrier group is continuing to invest to make sure that its capabilities comply with the latest revision to the EU’s Good Distribution Prac- tice (GDP) for pharmaceutical transport. Although GDP is currently a best-practice initiative, de Nooijer believes it will eventu- DOO\HYROYHLQWRDÀUPUHTXLUHPHQWDOWKRXJK Company focus: Air France-KLM-Martinair Cargo he says it is in the best interests of the in- Revenue tonne-km (millions): 10,088 in 2013; 10,577 in 2012 (-4.6%). dustry that the requirements are set up in Available tonne-km (millions): 15,971 in 2013; 16,411 in 2012 (-2.7%). consultation with carriers. Average cargo load factor: Another development in recent months 63.2% in 2013; 64.5% in 2012 (down 1.3 percentage points). Cargo tonnage carried: has been the changes within AF-KLM-Mar- 1.3 million tonnes (estimated) in 2013; 1.304 million tonnes in 2012. tinair Cargo, as the challenge of operating Cargo revenues: €2.9 billion (estimated) in 2013; €3.06 billion in 2012. freighters in the current soft air freight mar- Main hub handling capacity: ket has shifted the group’s emphasis to- AF Cargo-CDG: 1.4 million tonnes. KLM-MP Cargo-SPL: approx. 1 million tonnes. wards bellyhold capacity. Operationally, the Main hub – infrastructure and capacity changes in 2013 and 2014: Improvements in the handling equipment and storage facilities for various specialised products reducing number of freighters operated by (including Live Animals, Pharmaceuticals, Art, etc.) both in CDG and SPL. the group is likely to result in an increased Plans to outsource cargo handling: 2014 will see cargo handling outsourced in number of transhipments needed between various AF provincial stations, such as MRS, TLS and BOD, although LYS will con- the freighter and bellyhold networks. tinue to be handled by AF Cargo. Cargo handling at Paris-Orly airport will also be outsourced in mid-2014, as part of the group’s ‘Transform 2015 Plan’, in response ´:HRSHUDWHWKHIXOOIUHLJKWHUVDV0DUWL WRWKHFXUUHQWHFRQRPLFHQYLURQPHQWDQGDVLJQLÀFDQWGRZQWXUQLQFDUJRDFWLYLW\ nair, and we handle those at the Menzies at these stations in recent years. WHUPLQDODW6FKLSKRO7KHSDVVHQJHUEHOO\ Changes to products and services in 2013 and 2014: Upgrades of processes and equipment, as part of a permanent improvement process. friendly planes and the combis we handle 3ODQQHGDLUFUDIWÁHHWFKDQJHVIRU AF-KLM will receive more B777-300ERs DW./0&DUJRµKHH[SODLQV´%XWZHKDYH and one more A380 (the 10th one for AF), and at the same time – and progres- an excellent routine in terms of the right sively – the seven remaining B747-400 passenger and the two B747-400ERF freight- procedures for the transfer of cargo, when HUVZLOOEHSKDVHGRXWRIWKH$)ÁHHWE\VXPPHU2QH0')DQGRQH %(5)ZLOODOVREHSKDVHGRXWIURPWKH./03&DUJRÁHHWE\VXPPHU it comes to intercontinental transit freight.” %\VXPPHUWKH$)./03&DUJRÁHHWZLOOEH 7KHVH SURFHGXUHV KDYH EHHQ LPSURYHG 10 full freighters (two at CDG and eight at SPL). further by the introduction of one single 1HZGHVWLQDWLRQVIRU air waybill last May, with all Martinair and ,QWKH6XPPHU6FKHGXOH$)ZLOOLQDXJXUDWHSDVVHQJHUÁLJKWVWR%UDVLOLD Tokyo Haneda, and Jakarta. Panama was inaugurated at the end of 2013. KLM shipments now using the KLM 074 DLU ZD\ELOO 7KLV UHTXLUHG FRQVLGHUDEOH )/ :8I>F8@IGFIKJ 8@IC@E<J SUHSDUDWLRQ ´HQVXULQJ WKDW WKH ZKROH LQ the compliance challenges and regulatory EHQHÀWZLWKDJOREDOVXSSOLHULQWHUPVRI IUDVWUXFWXUHLQFOXGLQJWKH,7ZDVFDSDEOH challenges, and it is something we have to cost and quality, that is an important ele- of handling that”, says de Nooijer. do jointly with your suppliers.” ment, because it helps to also smooth the 7KH PHUJHU RI WKH 0DUWLQDLU DQG ./0 process on the compliance side, and you cargo networks is to progress further with Local versus global partners can take things a step further.” the development of a new joint reserva- :KLOHVRPHSURJUHVVLVSRVVLEOHZLWKORFDO He also wants to work more closely with tions system – ‘Cargobus’ – which will re- suppliers, he expects the greatest results road feeder service providers, in the hope place the old booking system not only for to come from working more closely and RI FUHDWLQJ D EHWWHU ´MRLQW LQYHQWRU\µ V\V KLM and Martinair, but also Air France Car- on long-term agreements with the multina- WHP WKDW FDQ GHOLYHU ´EHWWHU RSHUDWLRQDO JR´$QGWKHQZHFDQFRPHWRRQHJOREDO WLRQDOSURYLGHUV´:KDWKHOSVRIWHQZLWKWKH resource models, where we shorten the inventory, and that will help us improve our ELJJX\VLVWKDW\RXFDQÀQGWKRVHMRLQWLQQR waiting times of trucks at the hub – which VHUYLFHVDQGWRRSWLPLVHRXUÁLJKWVWRDQ vations and joint strengths to optimise the DOVRKDVEHQHÀWVIRUWKHWUXFNLQJFRPSD even more accurate level – and to ensure SURGXFWVRUSURFHVVHVEDVHGRQFOHDU.3,V nies – and making it more of a push-pull from a commercial perspective that we are and trying to reduce on one hand the spend, PRGHO$QGWKDWLVFRQQHFWHGWRWKHÁLJKW a single force in terms of one face of the and on the other hand creating a joint ben- arrivals, with cargo loaded on the trucks customer,” says de Nooijer. HÀWZKHQTXDOLW\JRHVMRLQWO\XSµKHVD\V arriving at the right time, so that you get And there will be other operational bene- ´,WLVSRVVLEOHZLWKORFDOKHURHVEXWWKHWUXH DNLQGRIMXVWLQWLPHÁRZWKURXJKWKHKXE ÀWV´,WZLOODOVRSURYLGHEHWWHUXWLOLVDWLRQRI gain comes if you do it with global suppliers, 7KDWLVLQLWVLQIDQF\EXWLWZDVRQHRIWKH trucks, and also create better capabilities because then you can leverage the global drivers this year, and we want to see if we for clearly managing one ULD inventory, as network on both sides.” can further optimise that.” well as improving pallet optimisation, both 7KLVXQGHUOLQHVDWHQGHQF\WRPRYHWR Another area offering potential is to in- in Charles de Gaulle as well as Schiphol.” wards using the global handlers, although tensify the partnership with Delta Airlines, 7KHSODQLVWRLPSOHPHQWWKLVLQWZRSKDV handler choice is examined on a case-by- something that is more strongly developed es, in May 2014 and May 2015. FDVHEDVLV´7KHUHLVQRWRQHUXOHWKDWZH within the passenger side of the group. For the time being, there are no plans will only work with the global providers, ´:HKDYHVWLOOVRPHMRLQWJURXQGWRJDLQWR to combine the KLM and Air France air EXWZKHUHWKHUHLVPXWXDOEHQHÀWRIGRLQJ gether with Delta on the cargo operational ZD\ELOOV´,QWKHVKRUWWHUP,GRQ·WIRUHVHH things together at a high level, then why side by looking for opportunities when it WKDWEXW,EHOLHYHLWLVWKHZD\IRUZDUGWR QRWSXUVXHWKDWURDG"7KDWGRHVQRWPHDQ comes to joint handling opportunities,” come to a ‘grey’ air waybill and deal with it that at every station it cannot be a local KHVD\V´7KDWLVDOVRRQHRIWKHLWHPVIRU on a global inventory level. But that will not hero; that certainly will also still occur. But 2014, where we would like to get into the be in 2014.” LI\RXFDQÀQGDWPDQ\GHVWLQDWLRQVDMRLQW next phase.” QQQ Priorities for 2014 :LWK $)./00DUWLQDLU &DUJR KDYLQJ GH One key priority for 2014 is to intensify partnerships with cargo handlers voted a huge amount of time and energy in UHFHQW\HDUVWRÀQGLQJV\QHUJLHVEHWZHHQ the group’s three airlines, de Nooijer’s operational priorities for 2014 include ZRUNLQJRQJHQHUDWLQJHIÀFLHQF\DQGTXDO ity improvements through partnership with other stakeholders. ´:KDW ZH ZDQW WR DFKLHYH LV ZRUN RQ more of an intense relationship with our suppliers, with our global handling agen- cies, and making sure that it is not only DERXW FRVW DQG SULFH OHYHOV 7KHVH DUH very important, but also the fact that you each have the right quality levels and the right incentive levels to optimise the total FKDLQSURFHVV:HKDYHSXWDORWRIHIIRUW into that, and that helps us to also face Jgi`e^&Jldd\i)'(+:8I>F8@IGFIKJ 8@IC@E<J INCREASE YOUR VISIBILITY WITH A PRIME LOCATION BY BOOKING EARLY WHY EXHIBIT? Leading air cargo and air logistics companies have already booked over 30% of the exhibition space. Exhibiting puts you in front of air cargo industry leaders, forwarders,shippers, stakeholders, suppliers, regulators and other key decision makers. Asian markets will lead Decision-makers made Incheon Airport is the growth in air cargo for up over 80% of ACF 2nd busiest international the next 15 years. 2012’s attendances. cargo handler (as of 2011). Organized by: Hosted by: :FFC:?8@E trained HOJLXP·V DLU FDUJR WUDIÀF He says pharma shippers have a prob- The EU’s revised contains double the pro- lem at a lot of airports, in the transpar- portion of pharma-related ency of the supply chain as the shipment Good Distribution B products compared to the JRHVWKURXJKWKHDLUSRUW´,WLVGLIÀFXOWIRU Practice guidelines European average, largely them to make a risk assessment of the because there is a very strong pharma pro- supply chain with regards to possible tem- for pharma duction cluster around Brussels. SHUDWXUHGHYLDWLRQVµVD\V'H9DOFN´6RLI Of course, this cargo could go to other there are airports in Europe that are able shipments has led European airports if cargo handling was to show good quality at every step of the some European not up to standard, or the route connectiv- logistical chain, shippers will automati- ity was not available. These are, therefore, cally go to these specialised airports, be- airports and key areas the airport focuses on, says Na- cause the risk of their products having a than De Valck, cargo account manager at temperature deviation is much lower.” handlers to get Brussels Airport Company with responsi- De Valck says you can have a very so- their cool-chains bility for the airport’s pharma and perisha- phisticated freight forwarder with a dedi- bles projects. cated warehouse, but the chain can still validated, reports “We work with our local partners to JRZURQJEHFDXVHRISRRU623VZLWKWKH Will Waters improve our service for pharma handling, and we talk with airlines, together with the freight forwarders that control this pharma logistics business, to attract new ÁLJKWVDQGGHYHORSWKHVHURXWHV6RLWLV really a common investment of time and effort to convince the airlines.” De Valck will often go with forwarders to the larger shippers, partly to gain informa- tion about the shipper’s needs, but also to support the story of the forwarder that all of the links in the airport cargo handling chain have been optimised for pharma products. De Valck : A common investment Jgi`e^&Jldd\i)'(+:8I>F8@IGFIKJ 8@IC@E<J /X[DLU&DUJR·V½PLOOLRQSKDUPDDQGKHDOWKFDUHKDQGOLQJIDFLOLW\ LUXAIRCARGO ACHIEVES movement of these products, which dedicated infrastructure to cope amounted to 21,000 tonnes of cargo with the requirements of their major GDP CERTIFICATION in the nine months to December. customers, but usually designated for uxairCargo last year completed a “Pharmaceuticals and healthcare one user,” says Reynaerts. “This is rarely L €4 million investment in its pharma handling has grown to 4% of the total an infrastructure open to all users.” and healthcare handling facilities, FDUJRKDQGOHGLQE\/*&DUJRLQ +HVD\V/X[DLU&DUJRKDGUHFHLYHG and its commitment to this market OLQHZLWKH[SHFWDWLRQVµVD\V5H\Q WKHVXSSRUWRIWKHPDUNHW²IRUZDUGHUV was further underlined in January aerts. “The growth foreseen by our as well as carriers, including home car- when its facilities and processes customers for 2014 is about 7%.” ULHU&DUJROX[²LQWKHGHFLVLRQSURFHVV ZHUHFHUWLÀHGDV*'3FRPSOLDQW7KH Although he is reluctant to talk and the creation of the pharma hub. 3,000 sqm facility within the Luxem- about pricing, the ability to cover “This was a must, to accompany bourg handler’s 60,000 sqm existing the costs of investing in a multi-million cargo terminal includes two storage customers’ commercial efforts with euro pharmaceutical facility requires areas, separated truck docks under investment in state-of-the-art infra- temperature control and 70 ULD VLJQLÀFDQWFULWLFDOPDVV²VRPHWKLQJ VWUXFWXUHWKDWSXWV/X[HPERXUJDW WKDWLVGLIÀFXOWIRUFDUJRKDQGOHUVWR FRQWUROOHGWHPSHUDWXUHFHOOV the forefront on a European level, achieve in markets where multiple allowing them to meet the WHO and Jean-Marc Reynaerts, vice- cargo handlers are competing for *'3UHTXLUHPHQWVDQGEHQHÀWIURPD president for business development, limited cargo volumes. Since the de- competitive advantage.” VD\VWKH½PLOOLRQÀJXUHH[FOXGHV SDUWXUHRI6ZLVVSRUWIURP/X[HPERXUJ Although the GDP system is not the “thousands of hours” invested in DLUSRUWVHYHUDO\HDUVDJR/X[DLU&DUJR mandatory, revised GDP guidelines staff training. So far about 500 people has been in the fortunate position of published in September 2013 allow have received training, from ware- being the only cargo handling agent house operators to management, in at the airport, allowing it to achieve a D*'3FHUWLÀFDWLRQSURFHVV²VRPH physical handling and the EU’s Good throughput of nearly 700,000 tonnes WKLQJWKDW/X[DLU&DUJRKDVZRUNHG Distribution Practice (GDP) guidelines towards along with several other last year. for handling of pharmaceuticals and VWDNHKROGHUVDW/X[HPERXUJDLUSRUW life-science products, although it is With the increased focus on including, airlines, forwarders and a continuous process. The company cool-chain products from airlines, trucking companies supported by LQWHQGVWRH[WHQGWKHWUDLQLQJWRDOORI forwarders and the air cargo sector in /X[HPERXUJ·V0LQLVWU\RI(FRQRP\LQ its 1,000 employees. general, some airports are positioning order to create a full GDP handling Since the opening of the new themselves as hubs for pharma and FKDLQDWWKHDLUSRUW7KH*'3FHUWLÀ pharma and healthcare centre last SHULVKDEOHVWUDIÀF cation process ended in December, $SULO/X[DLU&DUJRKDVDOVREHHQ “What we have seen during 2013 ZLWKFHUWLÀFDWLRQIURP%XUHDX9HULWDV closely monitoring every aspect of the is a number of airports preparing achieved in January. O airlines or handling agent. “That is why we shippers are looking for? How do you build New GDP guidelines look at the entire platform, not only what DVSHFLÀFGHGLFDWHGSKDUPDZDUHKRXVH" These best-practice initiatives are par- happens airside, but also at steps in the What kind of infrastructure do they need? WLFXODUO\QHHGHGXQGHUWKH(8·VQHZ*'3 supply chain before that,” he says. Temperature logging; dedicated accept- guidelines, in which the pharma shipper The airport has been helping to build ance checklists,” explains De Valck. “All of KDVWKHÀQDOUHVSRQVLELOLW\DQGOLDELOLW\IRU expertise within the local cargo commu- this kind of knowledge, this pharma mind- the transport and distribution, according nity, including organising a training school set, is being encouraged by the airport.” to the correct temperature indications of in Brussels, together with IATA, providing Brussels Airport is also part of IATA’s each pharmaceutical product. pharma training, for example, “in how 7LPH DQG 7HPSHUDWXUH 7DVN )RUFH ´6R “But in order to do this, he has to as- they make contracts and set up their pro- we really try to be at the front end of new sess every individual step in the individual FHVVHV KRZWRQHJRWLDWHWKH6/$V ZKDW developments, and to implement all of the chain. And this is not easy, since there are DUHWKHVSHFLÀFUHTXLUHPHQWVWKDWSKDUPD new guidelines as quickly as possible.” a lot of different stakeholders involved, *) :8I>F8@IGFIKJ 8@IC@E<J :FFC:?8@E and it is not always very transparent or easy for the VKLSSHUWRWDONWRHYHU\VWDNHKROGHUµVD\V'H9DOFN´6R PERISHABLE we need to help the shipper to select a reliable supply chain, to come up with some kind of minimum require- ment or standard that convinces them of the handling quality of our products at the airport.” The challenges of controlling the temperature in the supply chain at every step “means that a couple of airports will probably specialise in this product type, because it is not easy to implement”, de Valck says.This specialisation has already happened to a large extent Interview with Dennis Verkooy, global at Brussels over the last three to four years, and the QHZ*'3FHUWLÀFDWLRQSURFHVVLVDQH[WHQVLRQRIWKLV director for perishables logistics and “If we look at the amount of freight forwarders that are consolidating their pharma shipments for the en- director for air logistics, Netherlands at tire western European region in Brussels, this is a clear Kuehne + Nagel SURRI WKDW ZH DUH GHÀQLWHO\ D VSHFLDOLVHG DLUSRUW ZLWK regards to pharma.” For example, at the end of last year Expeditors RSHQHGDÀUVWOLQHIXOO\GHGLFDWHGSKDUPDKXEDWWKH uehne + Nagel is a freight forwarder that takes per- airport, operated in partnership with Aviapartner (see ishables logistics seriously, with around a quarter of its photograph on page 41)ZKLOH'+/*OREDO)RUZDUGLQJ global air freight volumes coming from perishables traf- has built a very large forwarding facility, and Kuehne K ÀF,QVRPHPDUNHWVWKHSURSRUWLRQLVHYHQKLJKHUZLWK + Nagel and UTi are consolidating pharma shipments perhaps 60% of the company’s air freight shipments at LQ%UXVVHOV'H9DOFNSRLQWVRXW´6RLWLVYHU\SURPLV $PVWHUGDP6FKLSKROPDGHXSRISHULVKDEOHV,WPDNHVSHUIHFWVHQVH ing if we look at the evolution that is happening with therefore, that the company’s global director for perishables logistics, respect to pharmaceuticals handling at Brussels.” Dennis Verkooy, is also director for air logistics in the Netherlands. Investments in time and effort over many years have 6RMXVWKRZZHOOLVWKHDLUSRUWFDUJRHQYLURQPHQWFXUUHQW culminated now in a programme to get all 10,000 sqm ly serving the needs of perishables customers? RIFRROLQIUDVWUXFWXUHDWWKHDLUSRUW*'3FHUWLÀHGE\WKH Naturally, this varies according to a number end of this year – including all 15 different companies of factors including the airport or country in that have this infrastructure. “It is not only forwarders, question, the airline, cargo handler, and but also trucking companies and handling agents, that regulatory factors – particularly related to ZHDUHKHOSLQJWRJHWWKH*'3FHUWLÀFDWLRQµKHVD\V the attitude taken by the national or local “This will mean that whenever shippers use these certi- customs authorities and food, drug and ÀHGVWDNHKROGHUVDWWKHDLUSRUWWKH\FDQUHVWDVVXUHG veterinary administrations. WKDWWKHLUSURGXFWVZLOOEHKDQGOHGLQD*'3FHUWLÀHG But Verkooy believes that the overrid- way, not only with regard to facilities and cool rooms, ing factor is having a good handling agent but also the expertise of the people and the training at the airport. that they have received.” “You can get the most highly sophisticated He says IATA is also doing some excellent work, col- airport, but if you don’t have a handling agent laborating with all stakeholders that are involved in the that takes care of your cargo, you can cool chain. Finding a consensus within its task force still run into problems,” he says. takes time, but a lot of subjects that can make the dif- “The airline might have invested ference for good pharma handling are being discussed in a cold store, but you can and standardised. VWLOO ÀQG \RXU VKLSPHQW VLWWLQJ ´6RWKRVHDUHWKHW\SHVRILQYHVWPHQWVWKDWZHPDNHµ RXWVLGHQH[WWRLW6R\RXGH De Valck says. “It is not so much in bricks and mortar; pend upon having an agent it is more in procedures and collaboration between the to act as your eyes and ears different stakeholders, and aligning everybody in order locally, to take care of your to offer a perfect pharma service at the airport.” QQQ shipments.” *+ :8I>F8@IGFIKJ 8@IC@E<J Kuehne + Nagel’s 5,000 sqm cold store at Amsterdam Schiphol - K+N’s only perishables tarmac location Kuehne + Nagel has its own trained spe- providing a better chance of it being sold that traditionally have a focus on perish- cialists at around 100 stations worldwide, and less chance of waste.” able cargo and take the product seri- DQG DW $PVWHUGDP 6FKLSKRO $LUSRUW KDV D ously, offering things like track and trace 5,000 sqm dedicated cold store with direct Problem areas and really investing in this kind of cargo, airside access attached to the Menzies 6R KRZ PLJKW WKH VLWXDWLRQ DULVH ZKHUH giving a it priority and good service. Our warehouse, complete with vacuum cool- the shipment is not taken care of properly? FXVWRPHUV PD\ VD\ WKH\ RQO\ ZDQW WR Á\ ers and phyto-inspection areas – the only Verkooy says it can be due to a number with a certain airline, because they know facility in the Kuehne + Nagel perishable of factors, including lack of training and that 90% of the time it will arrive in good network where the company has its own awareness among handling staff, lack of condition,” he explains. tarmac location. Under this arrangement, interest, and sometimes a sense that per- Certain airports are also preferred over cargo can be loaded from an aircraft and ishables are relatively low-value products others because of a history and reputa- be inside this temperature-controlled facility and therefore unimportant. Generalised WLRQ IRU TXLFN DQG HIÀFLHQW WUHDWPHQW E\ within 30 minutes. assumptions are also sometimes made the local regulatory authorities. For exam- “This business is all about speed and DERXW SURGXFWV· QHHGV DQG VSHFLÀF LQ SOH'HWURLWLVVHHQDVDYHU\GLIÀFXOWDLU to make sure that you maintain your cool structions are ignored. port for some perishables because of in- chain,” says Verkooy. “If you do that, you Verkooy says several factors determine ÁH[LEOHWUHDWPHQWIURPLWV)RRGDQG'UXJ can get the product to your client more which airline or airport he routes ship- Administration, including authorities that quickly and it has a longer shelf-life, ments through. “There are certain airlines are only available from Monday to Friday Jgi`e^&Jldd\i)'(+:8I>F8@IGFIKJ 8@IC@E<J IURP WR,QFRQWUDVWWKHÁH[LELOLW\DQG “If we have to wait four, five, or six since 2011 after the company was 24/7 availability of the FDA at JFK make it hours to get a shipment out, that is not able to purchase a “local hero” han- DQHIÀFLHQWDQGSRSXODUFKRLFH²DOWKRXJK so good,” says Verkooy. This can hap- dling agent. it helps that Kuehne + Nagel has its own pen for multiple reasons. For example, +HVD\VWKHHIÀFLHQF\DQGWLPHLPSURYH cooling facility there. the GHA or airline is simply being slow ments are tremendous. “And it is a great Flight schedules and arrival times are to find the shipment; or they cannot re- selling tool to our customers.” Although DOVRLPSRUWDQW)RUH[DPSOHLQWKH86´HYH lease it due to customs or FDA issues; he would like to have this option at other rybody wants to arrive as early as possible, or there is no notification provided to VWDWLRQV WKLV LV GLIÀFXOW EHFDXVH IRUZDUG because they don’t want to pay for overtime the forwarder by the airline or handler ers are not allowed airside access at most IRU WKH 86'$ RU FXVWRPVµ VD\V 9HUNRR\ to pick up the shipment. major airports. “But in the Middle East, we want to arrive “The quicker we can receive the cargo, But can he forsee it happening in the at night, because otherwise it becomes the better it is for us,” Verkooy explains. future? YHU\GLIÀFXOWWRSURWHFWWKHSURGXFW6RLWGH “This is where I think there is some improve- “It is not something that we are ac- pends where you are moving to.” ment possible.” tively pushing, and our priority is to This takes us back to the situation continue to build up and fine-tune our Improvement wishlist in Amsterdam, where “30 minutes af- network,” he says. “But if something 6RZKDWLPSURYHPHQWVZRXOGKHOLNHWRVHH WHU ODQGLQJ 8/'V DUH UROOLQJ LQWR RXU came along that offered an opportu- in the airport cargo-handling environment? warehouse”, says Verkooy. This unique nity, then of course we would be inter- Basically, greater speed… arrangement that has been in place ested. QQQ AN INDIAN PERSPECTIVE It also has a ‘Refrigerated Q-Lane’ (a temperature-controlled room for built ndia’s role as a leading manu- ULDs) and a cold room reserved only I facturing centre for pharmaceu- for domestic cargo. tical products has contributed to .RVD\V$,6$76%DQJDORUHKDQGOHG an exponential increase in the about 8% of the total perishable cargo transport of these products by air, across all Indian airports. This amounts while the ever-increasing popu- WRDSSUR[LPDWHO\DÀIWKRIWKHWRWDO lation of overseas-domiciled or FDUJRKDQGOHGDW$,6$76%DQJDORUH ‘non-resident Indians’ – NRIs as With the anticipated growth in interna- they are termed – continues to tional trade of perishable goods, AISATS contribute to the growing volumes plans to invest in another Refrigerated of Indian horticultural and other Q-Lane and a dedicated Perishable perishable products shipped by Willy Ko +DQGOLQJ&HQWUH´DQGLVDOUHDG\LQ air, including fruit and veg- talks with the regulatory authorities for etables, fish and spices, requisite permissions for the latter”. according to Willy Ko, &(2RI$,6$76$LU,QGLD·V Ko points out that it is not only ap- joint-venture handling propriate infrastructure that is essential FRPSDQ\ZLWK6$76RI to enhance cool-chain processes 6LQJDSRUH at airports; regulatory policy is also important, as are the appropriate Recent investments in new processes and guidelines. “In April handling facilities in India 2013, the Revenue Department have included areas and LQVWUXFWHGFXVWRPVRIÀFLDOVWR WHUPLQDOVVSHFLÀFDOO\GHVLJQHG accord ‘speedy clearance’ to handle cool-chain cargo, to perishable agro items,” VXFKDV&DUJR6HUYLFH&HQWHU he observes. “While these &6& ,QGLD·V3HULVKDEOH&DUJR developments showcase Terminal at Mumbai Airport and the regulatory authorities’ WKH3HULVKDEOH&DUJR=RQHORFDWHG support for the industry, cool ZLWKLQ&6&·V&DUJR7HUPLQDODW chain facilities including Delhi Airport. warehouses equipped with Ko says in India there is “room for temperature-controlled systems improvement in the cold storage and transportation processes would capacities at airports”. However, further enhance an industry that is $,6$76·%DQJDORUHWHUPLQDOLVZHOO still at a nascent stage in the country. HTXLSSHGIRUFRROFKDLQWUDIÀF There is also a need for comprehensive housing three cold-room facilities guidelines for minimum infrastructure with different temperature varia- requirements at airports for handling tions to cater to different products. such shipments.” O *- :8I>F8@IGFIKJ 8@IC@E<J Moscow’soscow s ussia’s air cargo market further growth of 4.1% this year, thanks for the end of this year, a new 15,600 sqm remains dominated by to development projects at its cargo com- warehouse is to be built, almost doubling Moscow’s Sheremetyevo SOH[ (IÀFLHQF\ DW 'RPRGHGRYR &DUJR Domodedovo’s capacity. R and Domodedovo air- – which claims to be Russia’s largest Installation of new software has allowed ports, which together international air freight terminal – was Domodedovo Cargo to transmit reports account for most of the country’s inter- improved last year by adding more inter- electronically to the customs authorities QDWLRQDODLUIUHLJKWYROXPHV&DUJRWUDIÀF national cargo delivery bays and expand- when freight goes into temporary stor- at Domodedovo grew by 1.8% to reach ing the workforce. A new cargo reception age or is shipped out. The next planned 200,000 tonnes in 2013, following growth facility opened, helping optimise the way stage is to develop interactive services of more than 4% in 2012. Asiana, Air- IUHLJKWÁLJKWVDUHRSHUDWHGDQGVHUYLFHG for airlines, cargo agents and exporters/ BridgeCargo and Emirates all increased Further infrastructure development importers, allowing them to order required WKHLU FDUJR ÁLJKWV DQG 5XVVLDQ FDU is under way, including the expansion of services, prepare documents and track rier Transaero launched freighter services refrigerated facilities for perishable goods shipments online. from DME last April. and short-term warehousing. In the fourth Rival Sheremetyevo handles most of The airport handles more than 40% of DQG ÀQDO SKDVH RI UHFRQVWUXFWLRQ DW WKH the remainder of Moscow’s air cargo, with 0RVFRZ·V DLU FDUJR WUDIÀF DQG H[SHFWV international cargo terminal, scheduled around 300,000 tonnes. SVO has seen a */ :8I>F8@IGFIKJ 8@IC@E<J As Russia warms itself on the Winter Olympics SOCHI’S DAY IN THE SUN s the host city for this year’s Win- glow, the country’s air cargo community is Ater Olympics, Sochi has naturally been in the international spotlight of EHFRPLQJPRUHHIÀFLHQWDQGLQFUHDVLQJO\ late, and its airport has seen a cargo boost as a result. One of four airports electronic as it heads towards e-Freight readiness managed by Basel Aero in Russia’s southern Krasnodar region, border- ing the Black Sea, Sochi Internation- al Airport almost doubled its cargo volumes last year, handling 4,200 tonnes of cargo as preparations continued for the Winter Olympics, according to Vasily Savinov, chief RSHUDWLRQRIÀFHURI%DVHO$HUR In contrast, cargo volumes at the group’s Krasnodar Airport were 10% down, affected by an ongo- ing revamp there, while Anapa and Gelendzhik airports saw 20% and 30% declines respectively. The four airports combined saw total throughput of 12,000 tonnes of cargo in 2013, around the same as the previous year. Sochi’s volumes may be small potatoes compared with the Mos- cow airports, but its extra volumes have provided some nice additional business for Russian carriers such as Volga-Dnepr Airlines. Volga has operated 18 Winter Olympics FDUJRÁLJKWVWR6RFKLVLQFH when work started on new transport infrastructure and tunnel-boring equipment was required. Shipments carried since then have included broadcast telecommunications equipment, along with transform- ers and mobile gas turbine power plants to provide reserve electrical power. Sister airline AirBridgeCargo has also participated, for example delivering 30 tonnes of Olympic cargo from Moscow to Sochi last November on one of its B747-8 freighters, including eight pallets of major revamp of its passenger facilities in Elsewhere, St Petersburg Pulkovo air- broadcasting equipment. the last few years, and also has plans to port has been under the international Savinov says that even in normal construct a new 20,000 sqm multimodal management of the Northern Capital times, Sochi is mainly an import des- cargo complex, although the details and Gateway consortium since April 2010, tination. “Sochi is a resort city which doesn’t produce agricultural or timeframes for this project remain un- a grouping that includes Germany’s industrial products. The local market clear at present. In the mean time, airport Fraport, and a new passenger termi- is focused on providing services for tourists and the local population,” handler Sheremetyevo Cargo has also nal is expected to open some time this he says. been making progress in the last year with year. Meanwhile, cargo handling at the By contrast Krasnodar, Russia’s its electronic communication capabilities. Pulkovo Cargo Terminal previously oper- “breadbasket”, is seen as having Indeed, the company has spent a year DWHGE\6HUYLVDLULVQRZXQGHUWKHÁDJRI good potential to supply agricultural products to the rest of the coun- testing and implementing an e-Freight Swissport following the completion of its WU\DUROHQRZPDLQO\IXOÀOOHGE\ programme for its domestic airlines and is acquisition of Servisair late last year, giv- Moscow and Yaroslavl. As Krasnodar now working on rolling out these capabili- ing Swissport Cargo a toe in the Russian LQFUHDVHVLWVÁLJKWFRQQHFWLRQV with Russian regions, Basel Aero ties to its international customers. Russia market. Swissport will be hoping it has a is planning to promote the idea was one of the major locations targeted smoother ride in Russia than it has had of “general cargo in and fresh produce out”. O by IATA to start e-Freight pilots last year. in neighbouring Ukraine (see Ukraine Jgi`e^&Jldd\i)'(+:8I>F8@IGFIKJ 8@IC@E<J panel). However, for the time being St. Petersburg, despite being Russia’s pre- mier seaport, remains, in relative terms, an air cargo backwater, with annual vol- umes of around 25,000 tonnes. Eastern promise Across in eastern Russia, and serving Rus- sia’s third-largest city after Moscow and St Petersburg, Novosibirsk International Air- Airport focus: Karagandy Sary-Arka airport port had a positive year in 2013, with vol- olumes are small in the former Soviet territories to the east, especially away umes of cargo and mail increasing by 6.9% Vfrom the oil, gas and mining regions, and at Karagandy’s Sary-Arka airport in central Kazakhstan they got even smaller last year, dropping from 471 tonnes to almost 30,000 tonnes. The forecast for WRWRQQHV7KHRQO\DLUSRUWLQWKHUHSXEOLFWREH,6$*2FHUWLÀHGIRULWVJURXQG 2014 is to exceed 32,000 thousand tonnes, service safety standards, Karagandy is aiming to re-promote itself as a transit hub further growth of more than 6%. Growth has and maintenance centre. In 2011, the runway was lengthened to 3,600 metres, to accommodate the largest cargo and passenger aircraft. been mainly driven by the addition of new airlines – such as Transaero and Aviastar- BUDAPEST CONTINUES outside. The roof height is limited 78²DQGLQFUHDVHVLQÁLJKWIUHTXHQFLHVE\ and the ramp position “not ideal,” AirBridgeCargo. DOGFIGHT WITH VIENNA Droese says. The majority of international cargo air- OVER CEE CARGO The airport authority was ready to start work on a new facility prior lines using Novosibirsk do so as a tech udapest’s cargo throughput shrank to the collapse of Malev, and was stop, and these include Cargolux, Yangtze Bslightly to 92,000 tonnes in 2013, but negotiating lease terms with Çelebi, the decline came in trucked cargo. River Express and Nordic Global Airlines, Malev Ground Handling and Menzies Flown volumes were up 4% at 64,000 - which has only carried out passenger although the Tolmachevo Cargo termi- tonnes, of which freighters accounted handling in the past. for 54,000 tonnes. nal is capable of handling up to 50,000 The project was postponed, but Qatar Airways ceased a freighter tonnes per year. construction is now set to begin at the service to Budapest in November end of next year, ready for opening Last November, Russian Post opened after two years, blaming a slowdown close to passenger terminal 2 by early an International Mail Processing Centre in imports, although exports by Hun- 2017. Celebi currently handles around gary’s pharmaceutical and electron- 80% of cargo at Budapest while (IMPC) at the airport, expected to handle ics industries remain in good shape. Farnair - with limited airside access - up to 60,000 parcels from China and Cargolux, which calls at Budapest en handles the rest. However, both Malev south-east Asia for addressees in Rus- route from Hong Kong to Luxembourg, Ground Handling, which survived accounted for almost 20,000 tonnes of sia’s Siberian, Ural and Far Eastern fed- the airline’s bankruptcy and wants last year’s maindeck total, says René to diversify into cargo handling, and eral districts. In the long term, the airport Droese, the airport’s property director Menzies could have a presence in the plans to attract new logistics operators, with responsibility for cargo. new facility. positioning Novosibirsk airport as an ac- %XGDSHVWLVLQDGRJÀJKWZLWK The four integrators will remain at Vienna, just 240km away, where Car- terminal 1, where they have better cessible postal hub. golux added a new service last year parking space, and where new ware- An e-commerce boom in Russia has - a decision “driven by one customer housing is also planned. Talks are under in particular,” Droese says. seen the number of small parcels from way about a new facility for TNT, and ,Q&RPPXQLVWWLPHV´HYHU\RQHÁHZ redevelopment plans are also on the China to Russia increase from 198,000 to Vienna” because of its better road table for DHL, whose volumes through items in 2010 to 1.8 million items in infrastructure, he recalls. And pas- Budapest grew by 25% last year. 2012 – a 900% increase in two years. sengers’ travel patterns have evolved “We have plenty of capacity, a ahead of the cargo community. parallel runway system and no curfew As a result, Russian Post and China ´&DUULHUVH[$VLDVWLOOÁ\WR9LHQQDIRU - only a limit on movements between Post signed a Memorandum of Un- historical reasons and freight forward- midnight and 04:00,” Droese says. derstanding last year that will enable ers are well established there,” Droese Under a new incentive scheme set acknowledges. “We have tried to China Post to send sorted shipments to be introduced in October, new attract Asian carriers here but we customers will pay no landing charges destined for recipients in Siberia and have a feeling that forwarders are not LQWKHÀUVW\HDUDQGRQO\LQ\HDU the Russian Far East directly to interna- ready for it on the land side. We face two. Budapest hopes this, and word a marketing challenge and we need tional postal exchange points in Novosi- that Vienna has put a proposed cargo proper facilities. They’re not old, but development on the back burner birsk and Yekaterinburg without having they’re not state of the art.” so that it can upgrade its passenger to send them via Moscow, as was the A lack of warehouse capacity facilities, will sway prospective cargo means cargo sometimes has to wait customers in its favour. O case previously. QQQ +' :8I>F8@IGFIKJ 8@IC@E<J UKRAINE STRUGGLES in passenger facilities or cargo”. increase violated its minority share- UNDER THE WEIGHT Bureaucracy is a problem at every holder’s rights and took legal action. stage from arrival of an aircraft through In March 2013, after a brief hearing, OF POLITICAL, LEGAL, to cargo collection by the consignee a court in Kiev ruled against Swissport after customs clearance. Local oddities and transferred its shares to UIA. The BUREAUCRATIC AND include no apparent procedure for name then reverted to Interavia. ECONOMIC CHALLENGES destroying cargo that is not picked up Swissport initially expressed concerns by a consignee in any of the country’s that there appeared to be no effec- hile Russia’s airports and air airports, which happens often. tive protection of foreign investment cargo facilities and processes are W There is also little competition in Ukraine, but last October – many being modernised and developed, between handlers in Ukraine’s strictly months and several court cases later neighbouring Ukraine is making little regulated operating regime, and the – the highest economic court in Kiev progress, and the current challenges ZHOOSXEOLFLVHGGLIÀFXOWLHVRIWKHRQH ruled in favour of Swissport, annulling suggest this is unlikely to change in the major international player that tried to the previous court decisions – thanks, short term. enter the market, Swissport, will doubt- no doubt, to the support of the Swiss Air freight and mail exports out less serve as a warning to others – that and French embassies in Ukraine and of Ukraine are estimated to have normal international legal protections the resumption of the activities of the decreased by up to 5% in 2013. The do not necessarily apply in Ukraine. government’s ‘Anti-raider Commission’. continuing economic recession in the In 2006 Swissport acquired a Swissport described this “a good country and the current civil unrest majority share in Interavia, which was ÀUVWVWHSµDQGVDLGLWQRZH[SHFWHG there leaves prospects for this year renamed Swissport Ukraine. Ukrain- to regain its majority ownership of the highly uncertain. Another 10% fall in ian International Airlines (UIA) was a former Swissport Ukraine. It said the exports is the best guess. smaller shareholder. Business grew at decision was “encouragement, not Air cargo sources in Ukraine say the double-digit rates each year and the only for Swissport but for all foreign country’s airports perform satisfactorily relationship remained good until 2011, investors that are, or want to be active on a day-by-day basis, but the state is when a discussion began as to how in Ukraine”. However, with the current making little effort to invest in new facili- the investment needed to maintain political turmoil in Ukraine, the country ties and there is “no apparent logic or IXWXUHJURZWKZRXOGEHÀQDQFHG8,$ may have other priorities for the time strategy in airport development, either claimed discussions about a capital being. O AIR CARGO HANDLING with a personal touch We provide cargo handling services at the two biggest German Hub-Airports FRA and MUC with our dedicated and well experienced teams. Quality, reliability, consistency, safety and security – not only words: LUG and its staff act upon these principals. Tel: +49 69 69819 500 t www.lug-fra.de LUG aircargo handling GmbH Cargo City Süd, Building 537 | 60549 Frankfurt, Germany Jgi`e^&Jldd\i)'(+:8I>F8@IGFIKJ 8@IC@E<J AIRPORT FOCUS: AMSTERDAM SCHIPHOL olumes grew 3.2% in 2013, taking VSchiphol close to its 2007 all-time record, as the global economy and FRQVXPHUFRQÀGHQFHFRQWLQXHGWRUH cover. Head of cargo Enno Osinga says Airport focus: Frankfurt-Hahn Airport focus: Berlin (SXF and TXL) the airport’s “three-pronged strategy” )UDQNIXUW+DKQ$LUSRUWKDGDGLIÀFXOW Berlin airports had a good 2013, with full- – process innovation, airline network development, and vertical industry with total freight, including transit cargo, year cargo volumes up by 10%, including penetration – helped the airport out- down 27% to 152,000 tonnes. The global a 33% year-on-year increase in December, perform other major European gateways economic challenges caused key customer thanks to new or expanded intercontinental in retaining and creating business. Air Cargo Germany to go into administration, ÁLJKWV IURP DLUEHUOLQ(WLKDG +DLQDQ 8QLW Osinga is mildly optimistic about 2014. “The steady growth trend throughout DQG$HURÁRWFHDVHGIUHLJKWHURSHUDWLRQVWR ed, Miat, and Qatar. the second half of 2013, along with focus on its bellyhold business. For 2014, Berlin’s airports expect to see signs of a return to the tradional Q4 Infrastructure improvements included re- a further 3-4% growth, including increased WUDIÀFSHDNDQGDXQLYHUVDOZDUPLQJ RIFRQÀGHQFHDPRQJRXUDLUOLQHDQG FHLYLQJFHUWLÀFDWLRQIRUWKH%IUHLJKWHU airberlin frequencies to New York and Chi- logistics customers, leads us to believe following the completion of the €4 million cago from May. that 2014 will be at least as good as 2013, and possibly better – although we RESA (runway end safety area). Recent developments included the are certainly not predicting any new A special focus in 2014 will be on using opening of the new BER cargo centre booms,” he observes. the airport’s experience and expertise in last August for the handling of cargo from He says there have been many LQVWDQFHVRIVLJQLÀFDQWQHZLQYHVWPHQWV handling outsized shipments and project Schönefeld Airport (SXF) and as a distri- by the Schiphol Airport community cargo. Sales manager Christoph Goetz- bution point for scheduled road feeder in the past 12 months, particularly in mann says Hahn also wants to make further services, to relieve the overcrowded Tegel perishables and life-science facilities. use of its long history and experience work- (TXL). Plans for 2014 include optimising Work has also continued on the E-link project, “effectively our local extension ing with carriers and forwarders from the the handling areas of Wisag Cargo Service to the paperless concept of e-Freight”, Russian language area. and Swissport at TXL. QQQ says Osinga. “We are also a partner and driver in NLIP, an innovative Dutch project for sharing information along supply chains and across multiple AIRPORT FOCUS: MAASTRICHT transport modes.” lown and trucked volumes increased 5% in 2013 to 79,000 tonnes, thanks to high- Strategic partner ACT (Amsterdam Fer volumes from Turkish Cargo, Cargolux and Royal Jordanian Cargo. Off-line Connecting Trade) is this year also deliveries from Asia also grew substantially in connection with the recovery of the DOORFDWLQJWKHÀUVW+DRIWKH6FKLSKRO hi-tech/consumer electronics sector. The region immediately surrounding MST has Trade Park, expected to attract com- several major high-tech distributors, and many of its freight forwarders specialise in panies from across the logistics chain. servicing hi-tech customers and their European Distribution Centres. Work on the airport’s security infrastructure also continues this year. CEO Sander Heijmans is bullish on the prospects of a continued air cargo recovery The current ULD scanning facility has across all sectors in 2014. “Hi-tech is already showing a solid recovery and exports from recently been upgraded by customs the Netherlands and Germany have been growing modestly through 2013,” he says. with the addition of a new roller-bed “Therefore we expect to be able to continue to grow our current volumes with our cur- with increased capacity. Centralised rent customers. We also have a very realistic chance to restore our direct import lanes monitoring and analysis of the remote from China with the rise in demand for MST as a destination.” scanners is planned for 2014, and Last year saw the completion of a new 10,000 sqm handling shed, which the airport mobile scanning teams will be intro- is preparing now to move into. Priorities for 2014 include continuing to work towards duced throughout 2014. Dutch customs becoming a centre of excellence for hi-tech products, “offering high-security and very are also adding a nuclear detection ÁH[LEOHVHUYLFHVµLQFOXGLQJD7$3$FHUWLÀHGÀUVWOLQHDLUSRUWKDQGOLQJIDFLOLW\O capability at all cargo entry points. O +) :8I>F8@IGFIKJ 8@IC@E<J he 2014 Air Cargo Handling in airport cargo operations, including ACHStyleS Conference 2014 y WEDNESDAY 17TH SEPTEMBER 2014 Conference will take place sessions on: quality and standards; pro- PHHWLQJV LQ,WDO\·VLQGXVWULDOÀQDQFLDO cesses and technology; security; custom- THURSDAY 18TH SEPTEMBER 2014 and logistics capital, Milan, ers and their needs (airline, forwarder and PHHWLQJV T from 17th to 19th Septem- VKLSSHU LPSURYLQJ WKH LQWHUIDFHV RI WKH &RIIHHEUHDNVDQGYLHZLQJ RIH[KLELWLRQ ber. The 6th annual ACH Conference, at KDQGOLQJFKDLQ RSWLPLVLQJHIÀFLHQF\ DQG $&+&RQIHUHQFHVHVVLRQV the prestigious Sheraton Milan Malpensa emerging opportunities. begin &KDLUPDQ·VLQWURGXFWLRQ Airport Hotel, promises to combine the Most delegates welcomed the input from &2$* 3URJUHVVWRZDUGV standardisation and EHVWHOHPHQWVRIWKHODVWÀYHVXFFHVVIXO ,$7$·V &DUJR 2SHUDWLRQV $GYLVRU\ *URXS VLPSOLÀFDWLRQ years with new features, including sched- &2$* DW ODVW \HDU·V /LVERQ FRQIHUHQFH $KDSS\FXVWRPHU $LUOLQH wishlists for cargo handling uled one-to-one meetings designed to op- bringing delegates up to speed with the 8:?:FE= FRIDAY 19TH SEPTEMBER 2014 ACH 2014 CONFERENCE HOSTS Andrea Piai Walpot, sales man- PHHWLQJV ager for ALHA Group, says it is highly &RIIHHEUHDNDQGYLHZLQJRI his year’s event in Milan has two hosts: DSSURSULDWHWRKRVWWKHHYHQWLQ0LODQ H[KLELWLRQ airport operator SEA - Aeroporti di $&+&RQIHUHQFH5HVXPHV T ´,WDO\LVRQHRIWKHOHDGLQJFDUJR Milano/Milan Airports, and airport cargo :RUNLQJ*URXSV6HVVLRQ PDUNHWVLQ(XURSH([SRUWVRXWRI0;3 *URXS$ ()UHLJKWDQGWKH($:% handling services provider ALHA Group. despite the world economic reces- Making it happen on the SEA says it is pleased as the sion, have been consistent and never ground operator of Malpensa Airport to host GURSSHG7KLVXQGHUOLQHVWKHLPSRU *URXS% 6DIHW\PDWWHUV²EHVW the event, and looks forward to the WDQFHRIWKH¶PDGHLQ,WDO\·SURGXFW practice and latest EUDQGDVDQ¶HQJLQH·IRUDLUFDUJRµ developments opportunity to share ideas on the air Group C: Cool chain – improving cargo business, its future develop- He says Milan is the perfect choice, temperature-controlled PHQWVDQGKRZWRLPSURYHHIÀFLHQF\ DQGWKHWLPLQJLVDOVRJRRG´0LODQLV handling “The event is also an opportunity for WKHHFRQRPLFDQGÀQDQFLDOFDSLWDO :RUNLQJ*URXSV6HVVLRQ the airport to have more visibility and RI,WDO\DQGQRZWKDWWKHQXPEHUV *URXS' 3URFHVVRSWLPLVDWLRQ ,7 to be in contact with the most impor- are picking up, we thought it would Cargo 2000, and other tools tant players in the cargo industry,” a be a great occasion to host such an Group E: Weight declarations and mis- declarations: implications VSRNHVSHUVRQVD\V´,WLVDOVRDJUHDW important event for our industry - and and cures opportunity to show the development for our country! All this then wraps *URXS) 5DPSKDQGOLQJ LPSURYLQJ RI&DUJR&LW\LQ0DOSHQVDFRQÀUP round the fact that Milan will also be interfaces with the cargo ing its role of primary cargo airport KRVWLQJWKHZRUOG(;32LQµ warehouse in southern Europe - in view also of He continues: “We think this is )HHGEDFNIURP:RUNLQJ the EXPO that will be held in Milan Groups superb occasion to show the industry 7DNLQJWKHLVVXHVIRUZDUG LQµ7KHFRPSDQ\VD\VLWZDV WKHSRWHQWLDO,WDO\KDVLQWHUPVRI COAG Conclusions impressed by last year’s event and cargo, and with the arrival of the &KDLUPDQ·VFORVLQJUHPDUNV very much appreciates the addition :RUOG(;32WKHPDUNHWLVWKULYLQJ /XQFKEUHDNYLHZLQJRI of the scheduled one-to-one meeting Milan will be the place to be in the H[KLELWLRQDQGHQGRI RSWLRQWKLV\HDU QH[WPRQWKVµO conference ++ :8I>F8@IGFIKJ 8@IC@E<J Tomorrow’s Airport Industry, Today <'5:1634*#3'1(5*'US$100 billion 3')+10#.#+32135&'7'.12/'05/#3-'5 <+4%644231,'%54#0&5'0&'34&+3'%5.:8+5*"145'&6:'34(31/17'3 3')+10#.#7+#5+10#65*13+5+'4 < 1+017'3 ).1$#.#+321354622.+'34#55*'+0&6453:4.'#&+0)$64+0'442.#5(13/ BOOK YOUR STAND TODAY Please call Raed El Forkh on +971 50 653 1941 or email [email protected] 11 – 13 May 2014 | Dubai International Convention and Exhibition Centre www.theairportshow.com SUPPORTERS Co-located events ORGANISED BY Photo courtesy of Amsterdam Schiphol Airport =FIN8I; Jeannette Goeldi, analpina’s Jeannette Goeldi RI VSHFLÀF LQGXVWU\ YHUWLFDOV ,9V 7KLV has worked in the logistics layer places a higher level of visibility de- global head of air sector for about 27 years – mands on the supplier, is likely to contain freight standards P mainly in the freight forward- different cost and speed considerations, ing side of the business and DQGUHTXLUHVWKHVXSSOLHUWRGHPRQVWUDWH and governance most recently within air cargo – but says FHUWDLQ RWKHU VSHFLÀF FDSDELOLWLHV WKDW she rarely gets the opportunity to speak PHHW WKH QHHGV RI WKH VSHFLÀF LQGXVWU\ at Panalpina, with cargo ground handlers, despite the YHUWLFDORUFXVWRPHULQTXHVWLRQ believes we risk huge number of interactions that forward- And at the very bottom of the pyramid ers have with handling agents on a day-to- sits the basics. “These basics are not over-engineering day basis. rocket science – it is moving the ship- “We are more facing towards custom- ment from A to B, having it there in time, air cargo handling ers, who deliver bread on the table!” delivered at the consignee, but also sup- solutions for she observes. ported with the respective documents,” So, after all this time spent facing the VKHVD\V´%XWZKHQ,VD\VXSSRUWHGZLWK customers and customer, what is it that customers really WKH UHVSHFWLYH GRFXPHQWV , GRQ·W PHDQ should focus want, and what can members of the air- SRXFKHV DQG DLU ZD\ELOOV , DP VSHDNLQJ SRUWFDUJRKDQGOLQJFKDLQGRWRKHOSIXOÀO more about them being supported by instead on getting their needs? electronic documentation.” Goeldi says the approach to master- As this last observation suggests, the ba- the basics right ing her customers’ needs can be best sics that customers have come to expect described using a three-layer pyramid, in has changed and evolved in recent years. which the top layer – the ultimate type of “One of the basics our customers now FXVWRPHUIXOÀOPHQW²LVDFKLHYHGWKURXJK also expect is proactive communication,” genuine partnership with the customer, Goeldi explains. “They expect us to let and in which the supplier is able to offer them know in advance when something a particular USP to this client. The middle happens with the shipment, but they OD\HULVWKHIXOÀOPHQWRIWKHUHTXLUHPHQWV also expect us to deliver shipment status +- :8I>F8@IGFIKJ 8@IC@E<J transparency. Not too many years ago, along with expected codes of conduct. scale, productivity, and personnel ex- the customer was happy when he knew Staff factors include 24/7 availability; SHQVHV$QGIUHTXHQF\IDFWRUVLQFOXGHLQ WKDWWKHVKLSPHQWKDGÁRZQRIIDQGJRW continuous training for staff in the relevant WHUQDWLRQDOÁLJKWVDYDLODELOLW\RIIUHLJKWHU delivered to the consignee. Nowadays issues such as dangerous goods, security, versus passenger capacity, and the road WKDW LV QRW IXOÀOOLQJ WKHP DQ\ PRUH or the handling of active containers; plus feeder service network. We are facing customers who place DQ DSSURSULDWHO\ TXDOLÀHG 4+6( TXDOLW\ Goeldi also compares these differentia- demands for 17 to 21 milestones, de- KHDOWKVDIHW\DQGHQYLURQPHQW PDQDJHU tors for all-cargo and mixed freighter-pas- OLYHUHG , ZRXOG VD\ SUREDEO\ ZLWKLQ VL[ ,QIUDVWUXFWXUH LQFOXGHV WKH QHFHVVDU\ senger airports, observing that freighter- hours of the event time happening. storage areas, facilities that are designed only airports tended to be lower cost with “So, these are the basics today; this is WR PHHW WKH UHTXLUHPHQWV RI WRGD\·V SUR less congestion than mixed airports, and nothing very special.” FHVVHVDORQJZLWKHTXLSPHQWVXFKDVVXE more capable of providing value-added She says these basics are not deter- mersible pallet build-up stations. services and high security, although they mined or differentiated according to the $FFRUGLQJWR*RHOGL,7LQWHUIDFHSULRUL WHQGWREHZHDNHUZKHQLWFRPHVWRÁLJKW industry vertical of the customer. “The ties include the ability to manage Cargo IUHTXHQFLHV basic is what everybody needs,” she says. PHVVDJLQJUHTXLUHPHQWVUHDGLQHVV ´,IZHWKHQJRRQHVWHSEH\RQGWKDWDQG She describes seven general differen- for e-Freight, plus readiness for other tech- ORRNLQWRVSHFLÀFFXVWRPHUUHTXLUHPHQWV tiators in air freight handling that are im- QRORJLHV VXFK DV 5),' DQG WHPSHUDWXUH RU WKH UHTXLUHPHQWV RI VSHFLÀF LQGXVWU\ portant to customers – in addition to one PRQLWRULQJ9DOXHDGGHGVHUYLFHVLQFOXGH verticals, then we can start to look at the key condition: compliance. These seven FXVWRPVFOHDUDQFHVDQG'*FKHFNVZKLOH VSHFLÀF SURFHVVHV UHTXLUHG IRU WKH FRRO differentiators are: costs; staff; infrastruc- security differentiators include access chain, or hanging garments,” she says. WXUH ,7LQWHUIDFHV YDOXHDGGHGVHUYLFHV FRQWURO &&79 DQG VFUHHQLQJ HTXLSPHQW For example, cost tends to be a key fac- security; and lead time – plus another dif- such as x-ray scanners and decompres- tor for the chemicals sector, fast fashion, ferentiating factor that is under the con- sion chambers. and the hi-tech and telecommunications WURORIWKHDLUOLQH IUHTXHQF\ Lead-time factors include low conges- sectors, whereas lead time is of critical Within compliance, key factors include tion, short physical distances, and the importance for spare parts in the automo- conforming to anti-corruption rules and the ability to service multiple customers, tive and manufacturing sectors, plus high relevant export controls and standards, while cost factors include economies of fashion. She observes that staff training Jgi`e^&Jldd\i)'(+:8I>F8@IGFIKJ 8@IC@E<J and the appropriate infrastructure are have carriers on FWB 6 and some on WRGD\WKHQ,DPUHDOO\ZRUULHG²EHFDXVH, critical factors for dangerous goods and FWB 16 and some on FWB 9. So we know that even for our operations we have RXWVL]H VKLSPHQWV ZLWK VSHFLÀF LQIUD GRVHHDQXUJHQWQHHGKHUH,QFUHDVHG D VWUXJJOH XSKLOO WR JHW WKRVH ÀYH SRLQWV structure also key for high fashion and transparency will come if you have 100% punctual, reliable, and in the cor- temperature-controlled healthcare prod- standardisation of formats.” UHFW TXDOLW\ DOO WKH WLPH $QG VR ZH VHH XFWV 0HDQZKLOH WKH DSSURSULDWH ,7 DQG 'LUN 6FKPLWW IURP /X[DLU&DUJR ZHO that even the basics then are beyond our security are essential for all industry ver- comed and agreed with Goeldi’s observa- scope of vision!” ticals and customers, along with certain tions on the basics. +H TXHVWLRQHG DOVR WKH OHYHOV RI SHQ value-added services. ´,WKLQNZHQHHGWRLQQRYDWHEXWLQUHDO etration in initiatives to improve messag- ´2QWRSRIWKHEDVLFVZHQHHGWRIXOÀO life this is such an uphill struggle to get ing performance – a challenge also facing WKHVHFXVWRPHUVSHFLÀFSURFHVVHVµVD\V 100% messaging performance – and we e-Freight. Goeldi. “And then when we master that, are no different from anybody else. We Schmitt continued: “We can move ahead we might be able to fully penetrate the DUHGRLQJRXURZQ0,3 PHVVDJHLPSURYH and innovate and create a world-leading customer and reach the level where we PHQWSURJUDPPH DQGLWLVVRGLIÀFXOWWR SKDUPDFHXWLFDOFHQWUHEXWLI,GRQ·WJHWP\ all want to be: locked into our customer’s get correct information – and that is for milestones for Cargo 2000 for the pharma supply chain.” everyone in the chain,” he says. KHDOWKFDUH WKHQ , DP QR EHWWHU WKDQ EH She adds: “What we see is that we all IRUH6RP\TXHVWLRQLVZKHUHLVWKHLQLWLD IRFXVYHU\PXFKLQWRGHOLYHULQJDXQLTXH tive to also drive this? Are we ground han- selling proposition to the customer, deliv- dlers getting the right messages? Are we ering tailor-made products. We almost go sending the right messages? And where is WR WKH H[WHQW RI RYHUHQJLQHHULQJ WR IXOÀO RXUYHUVLRQRIWKH0,3"µ the customer, and by having so much fo- Lothar Moehle, former regional direc- cus on the top of the pyramid we forget tor for Cargo 2000 and now director of to do the basics. For example, for 92% DLUIUHLJKWVHFXULW\VWDQGDUGLVDWLRQDW'% of all our irregularities that we face as a Schenker, commented: “The answer is freight forwarder, the root cause is within most likely in what Jeannette has said: go- the basics – meaning the wrong invoice, LQJDQGWDNLQJFDUHRIWKHEDVLFV,KDYH weight discrepancies, cargo that is dam- a little experience in Cargo 2000, and it aged, and so on.” LVDJUHDWWRROWRPHDVXUHWKHTXDOLW\RI Among the problems taking care of the the messaging. But then, once you have EDVLFV VKH SDUWLFXODUO\ LGHQWLÀHV LVVXHV Goeldi: Messaging quality is a major factor the results, what are you going to do UHODWHGWRPHVVDJLQJTXDOLW\DQGFRQVLVW with them? And there the basics kick in ency as a major contributing factor. straightaway. People have to go back and ´+RZGLIÀFXOWLVLWWRJHWWUDQVSDUHQF\"µ ´7KLVLVQRWÀQJHUSRLQWLQJ²ZHZRXOG VD\ ¶:K\DP,QRWVHQGLQJDQ):%PHV VKHDVNHGWKH$LU&DUJR+DQGOLQJ&RQIHU like to have the information stable and we sage to a carrier? Why is the RCS mes- HQFHLQ/LVERQODWHODVW\HDU´,I\RXVHQG know that the next step ahead or behind sage not arriving in time and complete?’ out an FWB, you do expect to get statuses has problems getting this information too. These are basics – and sometimes it is as EDFNIRUWKDWVSHFLÀFVKLSPHQW,I\RXORRN 6R,WKLQNWKLVUHDOO\LVDSRLQWWKDWZRXOG simple as training the people.” LQWRWKHFRPPXQLFDWLRQÁRZRIKRZIUDJ be really worthwhile working on, espe- *RHOGL FRPPHQWHG ´,I , FDQ WKURZ mented our system really is today, that cially by a unit of forwarders, airlines, and LQ VRPH QXPEHUV WR LOOXVWUDWH ZKDW , probably has to pass about eight different cargo handlers, to really consider are we mean: looking at arrival messages, we validations in the system. Most likely, all getting the basics in Cargo 2000 - or e- currently have an automation of 62% to of the parties within the communication Freight: it is the same topic; are we getting 75%. When it comes to manual status implement their own validations accord- this right today?” updates provided to our customers, it is ing to what they want to have. Some reject Schmitt continued: “My personal feel- around 174,000 manual status updates messages because of discrepancies, and ing and our experience is that on the a month in our system – and we still lose some let it through. inbound – and we are not much better customers because we are not doing a “So what we see as a main point right on the outbound – we need to set the good enough job! So this is to give you now is that the industry is still fragment- PLOHVWRQHVDQGKDYHWKHWULJJHUV$QGLI, an idea of what we freight forwarders ed when it comes to that infrastructure; then see that even the basics are beyond have to offer because we are not getting you are talking about XML, but you still WKRVHIRXURUÀYHPLOHVWRQHVWKDWZHKDYH standardisation.” QQQ +/ :8I>F8@IGFIKJ 8@IC@E<J With perfect service for your freight. Fraport Cargo Services. We can do it. Everyone should focus on what they do best. And we've been freight handlers right from the very beginning. For over 40 years we've been giving our clients speed and efficiency on the ground. We can offer you the full spectrum of airport freight services – provided by one single expert company. From start to finish and with a wide range of optional add-ons. Securely, and always in time. phone +49 (0) 69 690 - 70231 [email protected] www.fraport-cargo.com Your Pharma & Healthcare Hub in Europe Strategically located at Luxembourg airport, Luxair CARGO’s new dedicated infrastructure of 3000m2 offers 2 distinct temperature zones, each equipped with exclusive truck-docks and direct access to the aircraft handling ramp. This unique set-up, coupled with dedication, exper- tise and know-how safeguards the integrity of your products throughout the supply chain. Fast, reliable, safe and secure, LuxairCARGO is your partner for the special care & handling of your pharmaceuticals. For more information: www.luxaircargo.lu or by e-mail: [email protected] Controlled Room Temperature 15 - 25°C Cool Storage 2 - 8°C