Houston’s Perfect Position Genaro Peña, Director of Marketing airports during a time when candi- flights with the carrier cur- for Houston Intercontinental Airport dates like JFK and MIA and others rently now offering daily in the USA State of Texas dubbed are fading. nonstop service to Dubai. “Lone Star,” likes to describe what Genaro Peña however knows that Emirates is handling ap- is happening at IAH right now as the run up to getting the attention of proximately 16 tons of air “the perfect position” as carriers of Emirates and Cathay Pacific, Korean cargo out of Houston and every size ramp up service to the Air, EVA, China and some bringing in roughly 10 tons, gateway. players to be named later actually on each flight. He is also one airport execu- is the result of some best-laid plans “During 2007 Houston tive that is unafraid to address and to see this prairie gateway take its Airport System (HAS) moved seek solutions for some of the most rightful place amongst the greatest 52 million passengers and pressing issues confronting air cargo airports in the world. over 387,000 metric tons of today. Genaro Peña is an understated air cargo. Earlier this year at the Cargo Net- guy of specific goals who radiates “But as 2008 took off, work Services (CNS) Conference in class and distinction. HAS kept the pace up with Florida he added his voice and opin- No matter what the situation, he even more increases as ion to a panel discussion dealing with is ever deferential, pleasant and total freight tonnage grew airport and air cargo security noting: decent. by more than 6.3 percent, G“I am concerned that ever escalat- He also knows how to read the year-over-year with international offer access to more than 115 domes- ing costs will create even more down- tea leaves. passenger traffic up as well by 5.1 tic and 73 international destinations ward pressure on airport operators If it is raining elsewhere it’s also percent during January.” from Bush and Hobby airports,” Mr. just a short time away from a sunny The Houston Airport System (HAS) Peña confirms. day is the feeling you get when he is (William H. Hobby Airport, Ellington “Many air carriers consider Hous- explains what draws carriers to the Field and George Bush International ton as primary gateway into the Unit- bright star in the Lone Star State. Airport. ed States and the rest of the world. Mr. Peña describes IAH as being “IAH is one of the few airports “IAH, for example, offers the high- in perfect position as evidenced by in the nation primed for significant est number of weekly flights and the accelerated run up of new growth. serves the most Mexican destinations services unmatched by any other “Our 10,000 plus acre complex than any other airport in the United gateway in America right now and means we have room to grow. States. few others in history. “We have been anticipating the “What we are finding now is that It seems that the world’s airlines needs of our growing cargo and pas- many Asian and Latin American busi- have discovered this place all at senger base and that led to construc- nesses are looking for better ways once. tion of a fifth runway,” he said. to converge their markets,” Mr. Peña For Video Interview “In the first place it is certainly a “We have been very fortunate in explains. huge plus to be home base and ma- benefiting from such positive traffic “Literally, since China Airlines and Click Here jor hub for Continental Airlines, one increases over the years, but we can’t Korean Air Cargo inaugurated their of the most respected carriers in the deny that a large part of our growth services to Houston we have been during a time when everyone is trying world right now.” has been due, in part to the central getting more inquiries about new to balance doing what is needed and Continental will launch nonstop location of our city. routes.” right against pressures to increase thrice-weekly service Houston-Rio “The fact that our neighbors to the Singapore Airlines arrived this margins,” he said. de Janeiro on December 17. north and south are just a direct or past March connecting Houston to Houston Intercontinental Airport Barely two months after launch- nonstop flight away makes Houston Moscow, Russia and Singapore with has moved itself into some kind of ing new services into IAH, Emirates a destination not to be ignored. four weekly flights. upper star status amongst all USA Airlines added four additional weekly “Today several dozen air carriers Just last month Cathay Pacific Airways launched three weekly, Coming Attractions At LAX all-cargo flights to Hong Kong from Total weekly departures at LAX ity to Toledo (freighter service only Houston. The new service marks the first are expected to fall nearly 20% in in northwestern Ohio}, and upped scheduled all cargo flights to Hong November compared with a year our Houston flights in February from Kong from Houston and will become earlier. Deepest cuts have come thrice weekly to daily.” the fourth scheduled Asian, all cargo from U.S. carriers such as United Leading the LAX EK Cargo team connection from IAH. Airlines and Delta Air Lines that is Cargo Manager Siegfried Meyer, a Qatar Airways is scheduled to be- once again seem to be look- known and respected cargo execu- gin service IAH-DOH March 2009. ing in other directions, as Emir- tive at the gateway. Senior Cargo But Mr. Peña admits that there are ates launches first ever non-stop Agents are Anna Brown and Shalonn some challenges as well. flights via a B777-200LR, offering Bland. Cargo Supervisor is Alfredo “We have a 60,000 square foot up to 10 tons of cargo capacity in Limon, who also has many years of facility that is just ideal for operating each direction from Los Angeles Southern California air cargo experi- a perishables center and we have to Dubai on October 26. ence. been searching for the right opera- Speaking about Tinseltown “Response anticipating the new tor,” he says. services Emirates Divisional Se- service has been great from custom- “We know that our gateway is nior Vice President Cargo Ram ers, who have wanted a direct link ready as a viable addition for the Menen told ACN/FT: from the U.S. west coast to Dubai,” perishables trade to and from Mexico “Emirates SkyCargo is very Mr. Meyer said. as well as Central and parts of Latin committed to the U.S., which has In December Emirates adds a fifth America.” proved a very successful market USA destination as San Francisco/ Mr. Peña notes that his Houston odyssey has been some 14 years in for us. Dubai flights are scheduled to com- The Emirates SkyCargo LAX the development and making, so that “New York, among other things, is mence. the recent addition of new carriers can team has the experience and the the launch route for our A380 super From the Americas, Emirates also chops to get the job done. Pic- be expected to be followed with other jumbo aircraft that now calls at JFK. serves Toronto, Canada and São exciting and otherwise well thought tured (l to r) are Siegfried Meyer, “In June of this year we dou- Paulo, Brazil with scheduled servic- out and planned ground-breaking Shalonn Bland and Anna Brown. bled our weekly all-cargo capac- es into Dubai. developments as well. GDA The Original Volume 33 An American Family-Owned Air Cargo Publication Since 1975 Number 10 Where Do We Go From Here? Perfect Bull Perfectly Ingo View The Perfect Letter “I am a bull on air If romance is your thing, Don’t bet against Mau- freight,” say’s U.S.-based there is one last romantic rice Flanagan, the found- Julian Keeling, whose place left in busy Cargo ing chief executive and wholesaling air freight City South at Frankfurt current vice chairman company, Consolida- Airport. of Emirates Airline not tors International (CII), A company called seeing “the airline” and deals with hundreds of “Cargo Immobilien” Gateway Dubai emerge forwarders of every size that has been construct- as absolute tops in the and type. ing cargo facilities here world. Keeping his fingers almostI as fast as Rhe- DSeldom has the airline firmly on the pulse of in-Main Airbase was business delivered an the industry, Keeling returned to Germany executive with the clout, says that “while the heady in 1994, created a real class, heart and longevity growth of air cargo in the beauty a couple years of Maurice Flanagan. eight to ten percent range predicted“ at the beginning of ago in 2006. He also manages to put into a few eloquent words the year now is seen as much too optimistic, I expect a Building 641 in Cargo City South is all offices, no what most of the rest of us struggle to mangle into modest rise in volume of about two to three percent. warehouse. paragraphs. “Much of our freight consists of high value industrial Ingo Zimmer, top executive of GSSA ATC landed The words are poetic and worth reading over and items and hi-tech components and finished products. in the catbird seat as ATC occupies the entire top over. “These are continuing to sell reasonably well in U.S. floor of 641. For those keeping track, handler par Dear Geoffrey, and world markets,” he stated. excellence ATC Germany serves some 30 carriers from Any useful thoughts I might have on “Where Do We He contrasted the comparative strength of air all continents with a team of 20 sales and customer Go From here?, could be written on the back of a very freight with ocean shipping, particularly on the im- professionals. small postal stamp, i.e. governments and parts of the port side, which has seen declines in volume for the “We love this place, enjoy the view and are inspired brainwashed media and academia, with tax receipts, first time in the 21st century. to even greater heights,” Ingo said. jobs and reputations at stake, should stop using the in- “Imports into west coast ports are very weak while in But altitude does not cloud attitude when we ask creasingly discredited global warming myth to demonize a tandem development, a lessened number of ships are the big question. airlines, increase our costs, and drive the more gullible dropping anchor along the east coast,” said Keeling. Ingo Zimmer’s perspective of things to come, is of our customers away. “Importers selling consumer items like toys, apparel, right down on the ground where the most critical Sad thing is that some in our industries are equally home furnishings and furniture who use sea transport part of air cargo is dealt with every day: gullible. almost exclusively have become far more cautious in “Where Do We Go From Here,” is a good ques- As to that pressing world issue you mention, anything judging consumer intentions this holiday season.” tion,” Ingo insists. I might have to say today would be proved wrong tomor- Mr. Keeling pointed to the “where currently an “Just at the time when the high jet fuel prices, which row, as is the case with those regarded as experts. enormous oversupply of lift exists. “Airlines are cut- had already threatened the airline industry, started to All we can do is batten down the hatches and wait for ting cargo space as fast as they can, but overcapacity go lower and we thought to see a light at the end of the sun to come shining through again, as it undoubt- continues to grow.” the tunnel, we have been hit by the expansion of the edly will, though alas not for all of us. Julian Keeling said he believes a number of Asian worldwide financial crisis which continues spreading Kindest regards and more power to your elbow. based all-cargo carriers will be forced to merge “or like a brush fire. declare bankruptcy in 2009.” Pg-11 Maurice Flanagan

Lufthansa Cargo moved 143,000 tons tons, a drop of 3.7% compared to last of freight and mail last month, down year . . . A hijacker attempted to seize 6.2% as compared to 2007 . . . Austrian a Turkish Air flight with 167 aboard Saying the figures were severely affected Airlines moved 12,704 tons of cargo over Belarus en route to St. Petersburg by economic conditions with the Amer- and mail traffic last month, up 0.2%. October 14. After being overpowered icas traffic region hit particularly hard, January-September traffic was 109,200 by passengers, it was discovered the

hijacker was drunk and not armed. Incident points to new reality that five Terror Awaits miles high where the air is smooth, Opportunity-Pg-8 people no longer go gentle . . . Jet Air- ways that made a lot of airplane order TSA Ripped announcements slipped this one quietly Mathilde Class Of Kunming Seeks At Security under the door. Faced with decreasing Hellmann USA-Pg-4 New Future-Pg-7 IATA Claims Major Success-Pg-6 Conference-Pg-9 Pg-2 Shadow Truckers

Flim Flam land, for $3,500. The other story on Wired is a lovely A couple of stories on Wired Blog called Safersys.org, which maintains “But instead of transporting the nostalgia piece complete with pictures Network rate a second look. a list of licensed interstate trucking load, Lakes and Berkovich would titled: First, there are these guys who hap- companies and brokers, according outsource the job to another trucking The Friendly Skies—A Look Back pen to be from Russia who figured out to an affidavit filed by a department company, the feds say, posing as the At Air Hostesses. how to go into the cargo trucking busi- investigator. legitimate company whose identity “From “sky girls” to “stews” to ness the easy way, although now both There, the pair would temporarily they’d hijacked. “Once the cargo was “flight attendants,” the story of the air- are in a process that could include the change the contact information for a delivered, the men allegedly invoiced line stewardess is an evolutionary tale. slammer for their effort. legitimate trucking company to an ad- their customer and pocketed the “Originally established as an in-flight According to Wired: dress and phone number under their funds. nursing corps, the earliest stewardesses “Nicholas Lakes and Viachelav control. But when the company that actually also served as waitresses, baggage han- Berkovich have been charged with “The men then took to the web- drove the truck tried to get paid, they’d dlers and auxiliary ground crew.” computer fraud and operating a based “load boards” where brokers eventually discover that the firm who’d The story is lovely and the pictures profitable trucking company without advertise cargo in need of transporta- supposedly hired them didn’t know are wonderous. owning a truck. tion. anything about it. Can’t help but marvel at those “For over three years the Russian “They’d negotiate a deal, for exam- The men allegedly pulled in nearly 1960’s hair arrangements. immigrants repeatedly hacked a De- ple, to transport cargo from American $500,000 in the scheme before they Outstanding! partment of Transportation website Canyon, California, to Jessup, Mary- got caught. www.wired.com

Middle East and Europe. By early next year, Kuzu Continued from Page 1 will feature seven freighters in its demand, Jet is considering returning fleet . . . Shanghai some of its leased aircraft. “They are Airlines is selling looking at the possibility of returning controlling inter- as many as a dozen aircraft,” an inside est of 60% of itself source said . . . Ukraine International to China Eastern Airlines (UIA) started cargo service Airlines. Sources Vienna-Liege-Vienna cargo service in say government a deal with TNT that operates Monday approved the take- to Friday utilizing a UIA B737-300SF. goes from seven to 10 flights a week. over mainly because the two the new aircraft. The final step before UIA also operates a Kiev-Vienna-Kiev Additionally the airline will add two Shanghai-based airlines have too maiden flight of ARJ21-700, which is freighter routing with more flights on its Ho Chi Minh City- many routes overlapping, resulting in scheduled to be this coming December, Cargo . . . Vietnam Airlines is ramping Moscow and Hanoi-Moscow flight “unnecessary competition,” according is to carry out flight coasting tests. In up international services saying that schedule during the New Year holiday to the report. Can only wonder what the course of aircraft taxiing on the Ho Chi Minh City (Saigon)-Paris and . . . Kuzu Airlines Cargo’s first A310- shippers and passengers might say? . . ground, brake and turn, the test will Ho Chi Minh City-Melbourne routes 308F, one of three of the 40 ton freight- . Air Cargo News FlyingTypers learned observe parameters and indicators of that it operates will increase from three ers that it purchased last summer from from Aircraft Strength Research In- the aircraft. After this, the aircraft will to four flights a week, while Hanoi-Pu- Emirates, arrived at Istanbul’s Ataturk stitute of China that the regional officially enter “countdown” of its first san and Hanoi-Beijing flights will jump Airport and was immediately pressed plane, ARJ21, has passed the static test flight. On the market side, ARJ21-700 from three to five flights a week. Also into service serving ACMI and Char- ahead of schedule, signifying the fully Ho Chi Minh City-Singapore service ter Operations between Istanbul, the completion of ground resonance test of Pg-4

Editor 1975-1987 Ansel E. Talbert Editor/Publisher Geoffrey Arend Special Commentaries Julius Maldutis Managing Editor Flossie Arend Director Of China Bureau Han Bing Videographer Ralph Arend Vol. 33 No. 10 October 2008 Correspondents Ted Braun • Tirthankar Ghosh • Irum Khan • Guenter Mosler • Heiner Siegmund • David Advertising Manager Judy Miller Production Manager W. Arend Circulation Manager A. Stowell TELEPHONE (718) 479-0716 Founded in 1975. Air Cargo News The Original readership survey and circulation are independently audited and can be obtained by contacting [email protected]. Air Cargo News is published monthly. Entire contents copyright ©2008. No portions of this publication may be reproduced without written permission. All photos and written Email: [email protected] material submitted to this publication become the property of Air Cargo News and cannot be returned.

2 AIR CARGO NEWS OCTOBER 2008 Official On-Site Publication IATA World Cargo Symposium Bangkok 2009 WHERE THE FUTURE IS LANDING

Grow your cargo efficiencies. Grow your customer base. Grow your business. In Houston, there’s always room to grow. Bush Intercontinental Airport, with a CargoCenter that can park 20 widebodies, has plenty of land for future growth. The CargoCenter also features easy, one-stop service for cargo customers, custom brokers and air cargo carriers. And our business climate is considered the friendliest in the world. Visit fly2houston.com, or call 281-233-3000.

www.aircargonews.com AIR CARGO NEWS OCTOBER 2008 3

080051 UHOA ACN digital.indd 1 9/24/08 3:22:07 PM Mathilde Class Of Hellman USA athilde Morgan and her team getting too small. states. at Hellmann Chicago, locat- To avoid any jams or disruptions The weak dollar compared to the Med close to Chicago O’Hare the agent intends to rent an additional euro obviously enabled U.S. producers airport are quite busy these days: 6,000m_ in the vicinity next spring. to be more competitive and fill their “Our air freight tonnage keeps “By adding new space for handling, order books. growing double digit, the to-door sorting and distributing our goods we While in Chicago electronics and deliveries for a major U.S. retailer go are assured to keep driving in the fast machinery parts are the main items through the roof and we organize the lane,” Mathilde says. being flown abroad, components for entire supply chain for a major whole- Most remarkable and maybe indi- the automotive industry and high tech products are on top of the im- port list. Air Cargo News FlyingTypers About 350 miles southeast, in Since air freight is the key business recognizes the role of women in air Columbus, Ohio the picture is quite of the agent, major investments in se- cargo. We invite you, our readers different. curity will be necessary in short time. worldwide to participate by writing There, charter aircraft mainly bring “We intend to equip our main a short essay about what a woman in fashion commodities from Hong gateways here in North America you know means to air cargo. Kong or Shanghai. soon with the newest screening ma- Click here to view some of the “We presently have several flights chines,” she announces. stories we’ve already received. per week to the U.S. that land either So far, Hellmann stations in Chi- in Columbus, Miami, New York or cago, Atlanta, Dallas, New York, Miami Chicago,” French-born Mathilde ex- and Los Angeles are planned to be of- plains. ficial screening facilities. saler including ocean and air traffic, cating a new trend is the latest import- In addition, Hellmann is responsible Since the TSA demands screening warehousing, local distribution export ratio in air freight. for a charter chain from Latin America of 50 percent of each shipment that and residential deliveries,” empha- “At our Chicago station, exports to Florida bringing in fruits, vegetables, is transported in the belly-hold com- sizes the branch manager of Hellmann lately outgrew imports, accounting flowers and other perishables to the partments of passenger aircraft as of Worldwide Logistics. for about 60 percent of Hellmann’s U.S. domestic market. February 9, 2009, the money Hellmann Since the mounting tide of goods shipments “Some of these commodities like is spending will prevent delays within comes flowing in, Hellmann’s 10,000 while imports shrank to 40 percent fish or fruits go on to London by char- the supply chain and enhance security square meter warehouse at O’Hare is from January until now,” the manager ter,” says Mathilde. substantially. HS Aloha Air Cargo Soaring Aloha Air Cargo often pushed down services are just the ‘tip of the iceberg’ during 2008 with financial woes and of efforts to make this company the even its passenger business gone bust best it can be for both customers and had a moment to look up earlier this employees,” said Mike Malik, senior month at an official unveiling ceremo- vice president of Aloha Air Cargo. ny and aircraft blessing, Wednesday, After the parent airline went out October 15, to celebrate the company’s of business, Aloha Air Cargo was new brand. purchased by Seattle-based Saltchuk “We are extremely proud and ex- Resources in May 2008. cited to debut a revitalized Aloha Air Currently the carrier operates Cargo. overnight and time definite services “Our fresh exterior and enhanced between all the Hawaiian Islands.

Continued from Page 2

currently has an 181 aircraft order book from Chinese domestic airlines, and �������������������������������������������� three confirmed orders from GECAS. During the upcoming China’s Zhuhai Aviation Expo in November, more or- Name: Title: ders for ARJ21-700 are expected from Company Name: U.S. airlines, Air Cargo News FlyingTyp- routes as they are delivered in the sec- Address: ers learned . . . Oman Air opened its ond quarter of next replacing smaller City: Zip: new office at Suvarnabhumi Airport A310-300 jets currently in service . . . Country: Daytime Tel: Fax: this month to support its Thailand BDP Project Logistics, part of logistics operation. The carrier plans to go daily and freight transportation manage- Email Address: between Bangkok and Muscat early ment firm BDP International, has Industry:�� Airline ��Air Freight Forwarder ��Integrator�����Courier/Express ��Shipper next year. The flag carrier of Oman opened an office in Beijing, its second plans to use its brand-new Airbus A330 office in China. BDP Shanghai opened ��Other (specify) series jetliners on its Bangkok-Muscat this past January . . .

4 AIR CARGO NEWS OCTOBER 2008 Official On-Site Publication IATA World Cargo Symposium Bangkok 2009 When Trains Beat Planes ow, what timing! The arrival was scheduled Wfor October 6, at 12:30 pm local German time. Only a couple of breaths later at 12:34 pm 50 wagons loaded with con- tainers pulled by a red locomotive of railroad company Deutsche Bahn rolled on track number 2 into the station Alte Suederelbe at the port of Hamburg. Precision work made possible by six nations, the train had crossed on its 17 days and 12,000 km journey from Xiangtang in Southeast China to the northern German city. Loaded were each of the 50 steel boxes with computer components of provider Fujitsu Siemens GmbH. “By deploying the train instead of IATA08 25/02/08 18:25 Page 1 utilizing freight planes for transport- ing our goods, we saved 95 percent of tariff. greenhouse gas emissions”, exclaimed Floating cargo however, needs Bernd Bischoff, CEO of JV Fujitsu around 28 days to travel a slow boat Siemens. from China via Shanghai or Hong Kong In the future, around 70,000 tons, 20 to one of the major ports in Northwest percent of total China imports yearly, Europe. Mr. Bischoff says, “will move by train “Trains have a time advantage be- to Germany.” cause we can assemble and market our The ‘rest’ comes by boat and only a products one week earlier as compared small portion of highly urgent goods to using ships.” will be traditionally flown. The ‘Trans-Eurasia-Express’ will be- “By utilizing this method we will come a stan- annually avoid 23,000 tons of carbon dard product dioxide emissions. by February “Put another way we would have to next year. plant 190,000 trees to neutralize the “ A f t e r CO2 release of utilizing air to move Chinese New these goods.” Year we will

Ecology is one key aspect of this c o m m e n c e © - Andres Rodriguez Fotolia.com ‘Trans-Eurasia-Express’ rail link, econ- s c h e d u l e d omy, another. services with Asked by Air Cargo News / Flying one weekly Typers about the price differential of roundtrip between China and Ger- the three competing transport modes, many,” confirms Deutsche Bahn’s VP Bischoff said that breaking down the logistics Norbert Bensel (above). total carriage costs to the level of a According to the manager there is single notebook, it would require �23 great market demand by the automo- tive producers, chemical firms or the WFS, a team spirit consumer industry, although he admits WFS has 12,000 employees around the world - working “we don’t expect full loads on the way as specialists in Cargo Handling, Ground Handling and back from Europe to Far East.” WFS EUROPE Technical Maintenance. As a team, we aim to provide the best service possible to our customers by working Deutsche Bahn’s logistics unit DB 6, rue du Pavé - Zone de Fret 6 together as partners, to understand their business Schenker will market the trains. BP 11546 Tremblay en France and be responsive with innovative solutions. But the transports are neutral which 95709 Roissy Charles de Gaulle Tél : +33 1 70 76 00 00 means that everybody can book capac- We are global but local. We have a multicultural ity on the trains, even Schenker’s fierc- management and favour local hiring. est global competitors. WFS NORTH AMERICA 1925 W. John Carpenter Freeway To listen, to understand, to be flexible and innovative, As Bensel announced the existing Suite 450, Irving, Texas 75063, USA to be a partner, that is the WFS commitment. bilateral joint venture ‘Trans-Eurasia Tél : +1 972 629 5000 Logistics’ between Deutsche Bahn and Russian railroad company RZD, euros per piece if flown from China to will soon be joined by State-owned WFS ASIA PACIFIC & MIDDLE EAST Worldwide House 1501A Germany. China Railway Co Ltd. 19 Des Voeux Road Central, Hong Kong Using the train instead lowers cost “We are presently discussing the Tél : +852 2801 2980 down to �5.50 euros for each laptop. details which also include the percent- Even cheaper though, is ocean age of shares each partner in future will freight with prices at half of the train’s hold,” Bensel states. HS

www.aircargonews.com AIR CARGO NEWS OCTOBER 2008 5 IATA Claims Major Success gnoring uncertain politics and finan- Icials, airline claims managers, risk and insur- ance managers, freight forwarders, ground han- dlers, loss adjusters and eminent aviation liability lawyers gathered in Bang- kok a couple of weeks ago to discuss the pressing issues confronting the air cargo claims industry. The group of world leaders in the form may have gone into an air of uncertainty but the good news from attendees is that they came out from the two day sessions with practical, workable solu- tions and best practices The Chief Guest Mr. Kas- which can be shared by The inauguration panel from L to R: Mr. Chtivee Leelasiri, Country Manager, IATA, Ajay Pande, Chair person em Jaliyawatwong, Hon. all. Cargo Claims Conference and Manager Cargo Agency Policy, IATA, Mr. Thanarkorn Hutajuta, Manager, Cargo Chairman Thai Air Freight “This is the only in- and Mail Claim Division, Thai Cargo, Mr. Kasem Jaliyawatwong, Hon. Chairman Thai Air Freight Forward- Forwarders Association dustry conference of its ers Association (TAFA), Mr. Chusak Chuenprayoth, President, KC Fresh, Mr. Voratat Tantimongkolsuk, Hon. (TAFA), inaugurating the kind which addresses the Secretary, Thai Air Freight Forwarders Association (TAFA) and Michael Gill Senior Legal Counsel, IATA. conference. special needs of a very important, yet oft neglected part of the liability”. “Their interesting cargo solutions John Edwards, IATA’s Head of Car- industry said IATA’s Ajay Pande. “Air Cargo Claims in Growth Econ- can truly help ensure substantial sav- go Security, advised all the delegates “The Thai Air Freight Forwarders’ omies” and “Warsaw? Montréal, Bang- ings and dramatically reduce costly about the latest initiatives in the areas Association (TAFA) and Thai Cargo kok? Dealing with the cargo claims liti- air cargo claims payouts,” Mr. Pande of Cargo Security and Loss Prevention care (Thai Airways Cargo) lent their gation and a non-convention country” exclaimed. and the challenges ahead of him and

Mr. Vorapravat Suebsaeng, MD Thai Cargo welcoming the delegates at the Cocktail reception and the Thai Cultural show while Ajay Pande, the Chairperson of the Conference looks on. full support for this event. etc. were presented and examined and A very seasoned and experienced his team. “Air Cargo Claims were examined discussed,” Mr. Pande said. Claims Manager Arjan van der Kraan The two sessions, “Judges Corner” from the airlines’, forwarders’ and the Horst Billand and his wife Maren of KLM-Air France revealed why a and “Experts Advice” remained very shippers’ perspectives with solutions Mueller-Darheim of FTS-Freight Trac- claims manager sometimes needs the popular as ever. and recommendations from each of ing Systems & Consulting presented skills of a detective and shared some Judges Corner had eminent lawyers these stakeholders. their unique and very successful freight very useful and practical tips and tricks like Dan Sofin of Gates and Partners, “Well known lawyers like Holger tracing service that has been saving of trade which he had mastered over Joe Goodridge of Beaumont and Son Buerskens of Arnecke Siebold, Peter thousands of dollars for airlines and the years. Aviation at Clyde & Co and Francis Boys of Gates and Partners and Alan insurers, while Chris Catto Smith of Joe Goodridge of Beaumont and Montbach of Mound Cotton Wollen Polivnic of Watson Farley and Williams Cool Cargo Ltd. demonstrated how Son Aviation at Clyde & Co opened and Greengrass offering their opinions spoke on important issues such as unbroken cold chain and good logistics everyone’s eyes with his very illuminat- on the claims resulting in legal cases, “Air Cargo Claims: Finally an effective practices can dramatically reduce dam- ing presentation on “Fraud Involving brought along by the delegates. counter argument against unrestricted ages and claims to fresh produces. Air Cargo Claims”. Pg-10 6 AIR CARGO NEWS OCTOBER 2008 Official On-Site Publication IATA World Cargo Symposium Bangkok 2009 Kunming Seeks New Future South China’s Yunnan Airport airports are now turning a profit. end of 2010. Group launches a public invitation Fund from strategic partner will be According to New Kunming Air- for strategic partners worldwide to invested in an international logistic port’s plan, it will handle 600,000 develop air logistics within Yunnan park in Kunming, expansion of sev- tonnes of cargo in 2015. Province, marking the first public bid eral local airports, and particularly And the international logistic park, of Chinese airports in financing. the construction of the New Kunming occupying an area of 1.76 million Based in Kunming, capital city of airport. sqm, is schemed into two parts. The Yunnan province, the group currently Positioned as Southwest China’s first 160,000 sqm includes a 33,000- runs all the ten airports of the prov- Gate to South and Southeast Asia, the sqm-cargo terminal and 23,000 sqm ince, including China’s sixth largest new Kunming airport takes a total in- for agents, while the remainder of 1.6 Kunming airport. vestment of RMB18.4 billion (USD2.7 million sqm isn’t yet planned. “The trouble with the market is, not enough of you young brokers However, only three of these ten billion), and is projected to open by the (www.ynairport.com) want to get rich anymore.”

www.aircargonews.com AIR CARGO NEWS OCTOBER 2008 7 Terror Awaits Opportunity AM Session

hen Klaus Holler, Luf- thansa Cargo Head Wof Area Management The Americas called the big se- curity meeting to order Tuesday, In New York at ’s second September 30 inside the Garden security conference, pictured left City Hotel near JFK International to right are Harald Zielinski, Bill Airport in New York it was not McReynolds, and Howard Safir. without a sense all around that with new mandates toward TSA compliance coming up on the horizon, “Terrorists are looking for soft right back into improving security. So did the Security Lufthansa Cargo is redoubling its effort targets.” “Across the board since 2000 we Conference work? to maintaining itself as former New Captain Bill McReynolds of FedEx have charted a downward trend in Joe Frigger, CEO Emo Trans had York City Police Commissioner How- and Chairman ALPA’s Committee cargo theft that will continue once this to say: ard Safir puts it as “the gold standard,” on Cargo Security also had some again in 2008. “I found this in airline cargo security. thoughts. “The challenges are the new edicts conference to be a Holler, who once served as top gun “Air cargo security must be a part toward 100% security that will con- positive and nec- at the critical Lufthansa Cargo Center of a multi-layered tinue to raise our essary discussion in Frankfurt, has been at the helm in approach to protect costs all around. with a good mix USA since 2006. airline crews, pas- “These expenses of people. There He understands full well the im- sengers, airplanes are quite basic to us needs to be a con- portance of security and the “keep it and cargo shipments and must be met not stant exchange simple” concept having also served as from threat.” only for compliance between everyone a top ground executive at the Lufthansa So far “TSA’s con- but as the way we do involved in the Cargo hub at Sharjah. cept has focused on passenger airlines business. supply chain. For example, tomorrow “The shortest distance that air cargo and little has been done to air cargo “We have a few stations around will debut the 100% screening require- moves is from acceptance, through security,” the pilot and transportation the world where we do not accept ment for narrowbody aircraft (domes- the warehouse to waiting aircraft and leader and expert said. export cargo if we cannot control the tic). For an international forwarder back again on the same path to the “We need to apply the same stan- process.” like myself, the implementation of pick up area. dards of security to both cargo and Professor John Hansman (below) this requirement will serve as a learn- “How secure consignments are passengers. from The Massachusetts Institute of ing platform for further requirements handled across that space is the ma- “What that means is a clamping Technology (MIT) lifts the audience come February 1, 2009 and beyond.” jor driving force in success or failure down of security on all cargo flights with his professorial delivery of what Other attendees we talked to were in the air cargo business today and by applying the same edicts of back- sounds a little also enthusiastic. tomorrow.” ground checks and fingerprinting and like a Star Wars “I enjoyed the future talk but also Commissioner Safir who was top other devices normal to the rest of the approach to the the afternoon sessions that included cop responsible for the entire New York industry. future of air car- TSA,” said one participant. City Police Force during the time of “Ramp access, onboard activities, go security. “There is so much at stake for all of Mayor Giuliani and before and after the all cargo flight deck and other op- “Machinery us, so keeping on the same page with September 11, 2001 couldn’t agree erations are often the weak link in the always delivers our partners right now is critical,” said more: security chain.” the same atten- another. “Terror is just waiting to strike The FedEx pilot acknowledged the tiveness to the “For the freight forwarder all the again. need for a commercially viable solu- requirement. rules are quite confusing. “It is not a matter of ‘if,’ rather it is tion while also praising EL AL for its “Technology “Here we learned something plus when they will strike. security. is not a panacea but neither in my we made contact with some experts “I have looked into the eyes of the “We don’t have to look far to find view is a one size fits all approach to and also shared and networked with Islamic Jihadist. some excellent examples of total secu- air cargo security.” other disciplines in air cargo. “They have hate, determination, rity in the airline business and that is “Air cargo screening will include “Time well spent.” intelligence and cunning. EL AL Israel Airlines.” new technologies. As the day ended we found one of “Because of the success of 911, there Harald Zielinski, Lufthansa Cargo “Future screening should not be those small combination travel locks are entrepreneurial groups cropping Security Chief says something that static but able to observe all sides of and some brochures that host Luf- up that we must be ever vigilant and we have never heard before from any any subject. thansa Cargo provided. While looking watching out for. airline cargo executive: Prof Hansman spoke of applications for something to padlock came the “No room for complacency either,” “We reinvest 100% of every security utilizing gamma ray and new technol- realization that security, like rust, never Howard Safir declared. surcharge paid to Lufthansa Cargo ogy x-ray, “still to be proven.” sleeps. Geoffrey/Sabiha

8 AIR CARGO NEWS OCTOBER 2008 Official On-Site Publication IATA World Cargo Symposium Bangkok 2009 TSA Ripped At Security Conference PM Session y now it is clear that Rather the executive the USA Transport cited his “mandate”. BSecurity Admin- “The 50% and 100% istration (TSA) delivers milestones are fast ap- attitude plus an enforce- proaching, congressionally ment-driven agenda to air mandated and therefore cargo. not flexible,” he declared. But if the agency listens Other critics favored at all to what the market is a different architecture saying, TSA should think a to increase air freight se- bit about the heavy criti- curity. cism directed toward the John Hansman, Pro- agency from many life- fessor Aeronautics and long air cargo profession- Astronautics at The Mas- als that attended Lufthansa Cargo’s tecture was opposed by most par- house tenants and airlines begin to sachusetts Institute of Technology security conference last week in New ticipants who strongly recommended place their orders for licensed screen- favored a ‘Swiss Cheese Model’ with York. a single standard for both passenger ing equipment. “From the very day we different security layers, from canines “Separate but unequal securities,” and all-cargo air freight. get the purchase order we will need to scanning, bio-sensors or manual is how one observer “You are just as about three months to produce the inspection of shipments. described TSA deal- dead if you are hit by x-ray machines if we don’t have them “This variable layer architecture is ings with all-car- a passenger plane or in stock,” Zirwes emphasizes. the better long term strategy deliver- go versus belly lift a cargo plane,” How- Other devices producers will need ing higher security than the single edicts. ard Safir, former Po- a comparable time- approach screening TSA in fact says lice Commissioner frame for starting concept.” all air freight trans- of NYC said. their mass produc- But no matter ported on board “Airplanes with tion of x-ray ma- what security con- passenger aircraft is their hundreds of chines. cept might finally a potential means gallons of kerosene The technical in- be imposed by the of terrorist attacks are potential weap- frastructure how- U.S. administration and thus officially ons with no differ- ever, is only one pre- everybody agreed on ranked as highly insecure while boxes ence, if freighters or passenger aircraft,” condition of having one aspect: the addi- and packages flown by all cargo carri- Safir said, leaving no doubt that TSA’s masses of shipments tional costs security ers are not regarded as prime target of policy doesn’t sound right or doesn’t being screened. The other is trained will demand. criminal intents. even nearly convince him that it is personnel who can only get to work Klaus Holler, Lufthansa Cargo VP “We see different risk potentials sound.” after the devices are delivered and put The Americas in his final remarks because the threat factor on passenger “The imposed February 50% dead- in place. noted: and cargo is different,” stated Ed Kelly, line for x-raying passenger cargo seems Both unsolved preconditions and “We had to make a tremendous the Transportation Security Admin- to be a highly ambitious undertaking ample space needed for installing the investment in security. istration’s General Manager during since the TSA has not even validated equipment at airports or warehouses “Therefore, a screening fee will have the U.S. Security Conference held by the screening devices yet. make it highly unlikely that February to be imposed or fares increased.” Lufthansa Cargo on September 30, at “We have meanwhile been au- 9 can be maintained as launching day Meanwhile Lufthansa reported a Garden City, Long Island. dited by TSA experts but did not get for the 50% x-raying of air cargo. major benefit due to tightened secu- Consequently, the TSA mandates any feedback which of our products Instead, most likely is a transition rity: different levels of shipment screening and devices fully complies with the time of some months to give the cargo “Ever since we implemented our se- from the industry: 100% on all U.S. administration’s requirements,” said industry a chance to comply TSA’s curity hub system, thefts have dropped domestic passenger flights already Hans Zirwes, General Manager of mandate. by 98 percent,” announced proud under way, 50% of in- and outbound Wiesbaden-based Smiths Heimann This move was recommended by a Harald Zielinski, the German cargo transport as of Feb. 9, next year, and GmbH when approached by Air Cargo number of high ranking representa- carrier’s Head of Security and Envi- 100% on all passenger flights com- News FlyingTypers. tives at the security event but Ed Kelly ronmental Management at the New mencing in August 2010. Only when this infrastructural topic did not wave the white flag by scrap- York meeting. Kelly and his TSA’s security archi- is solved however, can agents, ware- ping the February deadline. Pg-10

www.aircargonews.com AIR CARGO NEWS OCTOBER 2008 9 IATA Claims Success TSA Ripped Continued from Page 6 Continued from Page 9

This session was effectively moder- Still you might wonder, with impor- ated by IATA’s Senior Legal Counsel tant deadlines coming and going for Michael Gill, who also presented IATA’s air cargo security, how is it possible for Resolution 600b. The “Experts’ Advice” TSA to present itself as stoic, inflexible sessions featured experienced claims and impenetrable? managers like David Harris (ex Brit- If the recent round of emergency ish Airways - Retired), Jimmy Hebert USA government financial bailout of American Airlines Cargo and Arjan activity proved anything, it is that van der Kraan of KLM-Air France. there is indeed flexibility and sense, Questions flew thick and fast during above partisan politics, for the com- these very highly interactive sessions mon good. and even the extra time allocated for The TSA has some politically-driven these sessions during this year’s con- decrees with deadlines on one hand. ference proved woefully inadequate On the other hand TSA can listen in the end. and learn and act in an enlightened On the eve of September 17th , Thai Mr. Voratat Tantimongkolsuk, Hon. manner and stop pointing fingers and Cargo had very graciously hosted a Secretary, Thai Air Freight Forwarders snapping off demands as answers like sumptuous dinner and an entertaining Association (TAFA), giving the Keynote they did in Garden City. Thai cultural show performed for 3 speech: Air Cargo Claims: the forward- World transportation deserves hours by charming Thai artistes, which ers’ perspective. better. gave the delegates a peek in the rich Kudos to Lufthansa Cargo for host- Thai heritage. This exotic offering left conference scheduled to take place in ing this important event. everyone asking for more. IATA Area-1 in September 2009. Heiner/Geoffrey An endearing tradition of this con- ference, over the years, has been the “ Lucky Draw” held at the conclusion of the conference. The delegates had donated so generously towards this “Lucky Draw” this year that every del- egate in the end went home with more than one gift. The highlights of this conference, undoubtedly, remain the unmatched quality of contents and presentations, the speakers and panel members bring and the extremely high level of interaction between the delegates, speakers and the panel members, su- perb networking opportunities with other colleagues in the industry, the near complete attendance on all three days as always, and, the sheer useful, practical and valuable information the delegates take back with them. The feedback received during and after the conference indicates that delegates are Claims can be fun too. Lucky draw at the end with Ajay Pande, the Chairperson, Yee Fun Wong, Conference Manager with already looking forward to the next Hideki Takeguchi-san of JL drawing the lucky person’s name!

10 AIR CARGO NEWS OCTOBER 2008 Official On-Site Publication IATA World Cargo Symposium Bangkok 2009 Remembering Kevin

We were saddened to learn that Kevin J. Lanigan, 49, of Dongan him a “chip off the old block,” as we say. Hills, a former freight manager who enjoyed spending time with his “He was a great guy and wonderful for air family, died in Staten Island University Hospital, Ocean Breeze Sep- cargo.” tember 29. “Dad openhandedly embraced any chance to In addition to his sons, Danny and Bobby, and daughter, Megan, meet and help others,” said his son, Danny. surviving are his wife, Margie; two brothers Michael and Patrick, and “We all strive to attain his level of compassion his sister, Diane Wallace. and generosity towards others.” Mr. Lanigan worked as a freight forwarder at Daniel F. Young Inc. “He was the most wonderful father who dedi- in Manhattan and Air Express International JFK Airport for many cated his life to making his family happy,” said years. his daughter, Megan Lanigan. “He had cancer and had been out of the business for some years One of his proudest moments came in early fighting through his illness while working on Staten Island where he June when the Minnesota Twins drafted his son, Bobby, in the third lived,” his friend Roy Stapleton, President Global Logistics Network round of the Major League Baseball draft. said. “My dad was happiest at home, in his backyard, with his family and “Many people in the business and otherwise who knew Kevin, found friends,” said his son, Bobby. To sign the guest book please click here

But everybody, including our in- will not have the normal boost for the We hope that the industry will re- Perfectly Ingo View dustry, is being made to pay the bill end of the year traffic from Europe. cover in the 2nd quarter 2009. Continued from Page 1 for these speculations now. The hope is for the last months of Lean companies with good produc- In general, financing business and the year that the business will at least be tivity and enough financial resources This crisis has been caused by, getting bank-guarantees to secure maintained at the current level. will master the storm. among other things, the investment business will be an issue now and into But for the first months of the year Tough times might come, but I bankers many of who were dealing the future. 2009 expect a significant drop in the personally believe in the survival of with risky derivates. For our industry my guess is that we airfreight business. the fittest.”

www.aircargonews.com AIR CARGO NEWS OCTOBER 2008 11 12 AIR CARGO NEWS OCTOBER 2008 Official On-Site Publication IATA World Cargo Symposium Bangkok 2009