QUALITY AND BEST PRACTICE IN AIR LOGISTICS OPERATIONS
Future forwarding The threat of disruption Preparing for take-off Amazon’s new air hub at CVG GOOD IN A CRISIS Charter market changes
World Airline Cargo Report Recovery continues into 2017
Drivers of change Handling pharma Focus on automotive shippers A question of integrity
6800(5WWW.CAASINT.COM&$$6,17
Cover photo courtesy: Air Charter Service JAMES SHERIDAN QUALITY AND BEST PRACTICE IN AIR LOGISTICS OPERATIONS Chairman Future forwarding The threat of disruption Preparing for take-off [email protected] Amazon’s new air hub at CVG GOOD IN A CRISIS Charter market changes
World Airline Cargo Report Recovery continues into 2017
Drivers of change Handling pharma PARVEEN RAJA Focus on automotive shippers A question of integrity 6800(5WWW.CAASINT.COM&$$6,17 Publisher Change in the air [email protected]
MARTIN KINGWELL hange is in the air. And I don’t just mean the improvement International Sales Director in the air freight market – although that is obviously helpful, [email protected] and welcomed by many of the airlines featured in this C issue’s World Airline Cargo Report (pages 26-34). But also NOVA ABBOTT highlighted in that report and elsewhere in this magazine Sales Manager – Asia are other interesting trends and patterns that have been building for [email protected] some time. EDITOR’S NOTE YASMIN LYDON 2QH LV REYLRXVO\ WKH LQÁXHQFH RI HFRPPHUFH ZKLFK VHHPV QRZ WR Events Coordinator EH ÀQDOO\ WUDQVODWLQJ LQWR VLJQLÀFDQW QHZ EXVLQHVV YROXPHV IRU WKH DLU [email protected] cargo sector. And although we have been talking for some time about the importance of the pharma sector and offering services that meet its TOM WILLIS needs, there seems to be a real momentum in this area. Carriers, airports, Journalist [email protected] and other stakeholders are really investing in the infrastructure and processes to support it, as highlighted by the take-up of the CEIV Pharma SHOBHANA PATEL programme and the successful launch and build up of the Pharma.Aero Head of Finance initiative (see pages 36-40). fi [email protected] And that seems to be really bringing dividends. Although the volume of pharmaceuticals carried by air only grew by around 3% last year, SHELDON PINK Creative Director VRPHFDUULHUVDQGORJLVWLFVÀUPVZLWKVSHFLDOLVWSURGXFWVDQGFDSDELOLWLHV [email protected] saw growth as high as 30%. Indeed, MIA reported a 48% increase in the value of pharmaceutical shipments shipped last year, thanks presumably in large part to its investments in developing the airport into a specialist regional pharma hub. Several carriers in the World Airline Cargo Report spoke of customers Address changes and subscription becoming increasingly sophisticated in their demands, and not only with orders to: [email protected] regard to the shipment of pharmaceuticals. And this will accelerate and ISSN 2054-8958 potentially increase exponentially as e-commerce customers expand
EDITORIAL CONTRIBUTORS WKHLULQÁXHQFHZLWKLQDLUIUHLJKW Megan Ramsay 7KDWJURZLQJLQÁXHQFHFDQEHVHHQLQSK\VLFDOIRUPZLWKWKHODXQFK of Amazon’s new air hub at CVG (pages 10-12). But it’s not just Amazon, RI FRXUVH $OLEDED·V ORJLVWLFV LQÁXHQFH LV JURZLQJ DQG IHOORZ &KLQHVH PUBLISHED QUARTERLY BY e-commerce giant JD.com has just set up a new logistics division that EVA International Media Ltd Boswell Cottage, 19 South End ZLOOPDUNHWVXSSO\FKDLQVHUYLFHVWRWKLUGSDUWLHVSURPLVLQJWRXVHDUWLÀFLDO Croydon, London, CR0 1BE, UK LQWHOOLJHQFH ELJ GDWD DQG DXWRPDWLRQ WR ´UHGHÀQHµ HFRPPHUFH Tel: + 44 (0) 20 8253 4000 logistics. And the major freight forwarders are investing heavily in digital Fax: + 44 (0)20 8603 7369 products, including setting up their own ‘virtual freight forwarding’ units – m{x{P D{wDy © 9yww disrupting themselves before external tech disruptors do. PRINTED BY And air freight is beginning to respond, including several examples in The MANSON Group Limited this issue of innovative initiatives to improve digitalization, tracking, speed, St Albans, Hertfordshire AL3 6PZ accountability, and transparency. I think change really is now coming.Q
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Issue 17 © 2017 | www.caasint.com WILL WATERS | Editor Content may not be reproduced in any format without written permission from EVA International Media Ltd [email protected] & [email protected]
6XPPHU CARGO AIRPORTS AIRLINE SERVICES 1 4
4 CHARTER MARKET REPORT: Good in a crisis A complex political environment is adding to the challenges
10 AIRPORT SPOTLIGHT: Amazon’s new hub at CVG Cincinnati prepares for a major cargo boost
14 CUSTOMER FOCUS: The future of forwarding Examining the threat from disruption
16 CUSTOMER FOCUS: Automotive shippers Product recall patterns are driving increased demand for air freight
20 AIRLINE INTERVIEW: Delta Cargo Gareth Joyce on operational reliability and customer focus
26 WORLD AIRLINE CARGO REPORT: Recovery continues Selected carriers review key developments in 2016 and 2017
36 PHARMA HANDLING: Integrity matters Trust, transparency, and compliance are key for shippers buying air freight
42 ULD FOCUS: Life aft er CHEP Unilode’s CEO discusses new technology and collapsible containers
46 REGIONAL REPORT: Africa A continent with great promise and major obstacles for air freight
53 GSA REPORT: Beyond general sales Agents raise their share of air cargo’s $50bn annual revenue
2 CARGO AIRPORTS AIRLINE SERVICES 6XPPHU Handled in good company.
From arrival until departure your live stock will receive the best treatment in our state of the art hosting facility. The animal welfare is our priority. Quality first.
Fli8M@Z\eki\#i\Zf^e`j\[ For any request please call +352 2456 6001 or visit www.luxaircargo.lu CARGO Good in a crisis Air freight remains a key part of humanitarian aid operations, but the challenges include a lack of affordable ramp-loading aircraft coming onto the market and an increasingly complex political environment, writes Megan Ramsay CHARTER MARKET FOCUS n crisis situations such as the aftermath of agreements, audits and strict ethical rules. In the humanitarian disasters, air freight can be event of the code of conduct being violated, a suppli- the only way to ensure necessary aid reaches er can be suspended or removed from the approved I those who need it. But there are often a huge OLVWDGGV-RVFKD.UHPHUVRIÀFHULQFKDUJHRIWKHSUR variety of operational challenges affecting curement division of the United Nations (UN). those involved in this unpredictable business. Another concern these days is that the cargo charter Not least of these is the question of the integrity of aircraft often used in humanitarian relief efforts aren’t the various suppliers and partners in the chain – how getting any younger. “It’s true that parts of the global can aid agencies be sure that they are dealing with ÁHHWDUH$QWRQRYVDQG,O\XVKLQVWKDWDUHJHWWLQJWRD reputable providers? certain age,” Kremers acknowledges. “It’s a concern, According to Marjo Leppännen, logistics delegate but if they’re airworthy and well maintained, then for the International Federation of Red Cross and they’re OK. In the future, though, we will need new air- Red Crescent Societies Nairobi, a key element is the craft, and we need to look into this with the industry.” SUHTXDOLÀFDWLRQ RI VXSSOLHUV DORQJVLGH IUDPHZRUN Dan Morgan-Evans, group cargo director at charter 4 CARGO AIRPORTS AIRLINE SERVICES 6XPPHU Our destination: High efficiency in your intralogistics Individual turnkey solutions for your air cargo project Benefit from synergies: ACUNIS is a brand of AMOVA and Unitechnik. With combined know-how and experience in intralogistics, we offer you support at every stage of your air cargo project. Hall A5 – Booth 1158 Our destination: Your efficiency in intralogistics www.acunis.de CHARTER MARKET FOCUS broker Air Charter service, notes that there quickly, perhaps flying to a hub airport are some new Ilyushins out there that in the belly of passenger aircraft before comply with European Union ‘Stage IV’ cri- being chartered to its final destination. teria, but that newer aircraft will be more According to Steven Verhasselt, vice expensive. Plus, the entry of new aircraft president commercial at Liège airport, LQWRWKHJOREDOÁHHWZLOOEHDVORZJUDGXDO bottlenecks may be physical (such as a process, so capacity may be an issue. lack of infrastructure), technical (the ac- Shahe Ouzounian, chief operating of- tual unloading of an aircraft, for example) ÀFHU DW EURNHU &KDSPDQ )UHHERUQ VD\V or legal (pertaining to Customs or landing the ex-Soviet aircraft currently available rights, for instance). are “robust and cheap”, but adds: “The Of course, when it comes to Customs de- concern is the lack of affordable ramp- lays, it’s no good having aid sit at an airport loading aircraft coming onto the market. clogging up the gateway and not reaching :H QHHG D ÀYH WR WHQ\HDU LQYHVWPHQW those who need it. Therefore Customs plan, but most people are concerned with brokers are an essential part of the chain, short-term budgets,” he observes. says Michael Brown, programme manager Further problems arise with regard to international logistics and forwarding at distribution. “We need to have hubs in Airlink. He also raises the idea of humani- strategic locations for consolidation and tarian relief operations as a consortium “There are some new distribution, but you never know where RU ÁH[LEOH QHWZRUN ZKRVH ´LQWHUFKDQJLQJ ,O\XVKLQVRXWWKHUH you’re going to need it – things are so un- parts can come together on an as-needed predictable,” explains Christine Mendes, basis” to respond to the particular needs WKDWFRPSO\ZLWK VHQLRU UHJLRQDO ORJLVWLFV RIÀFHU IRU WKH of each emergency situation. (XURSHDQ8QLRQ¶6WDJH World Food Programme. For instance, Ouzounian adds: “Today we face a com- PDVVLYHGLIÀFXOWLHVFDQDULVHLQDZDU]RQH SOH[SROLWLFDOHQYLURQPHQWVRÁ\LQJFDUJR ,9·FULWHULDEXWQHZHU in relation to guaranteeing the availability over countries is not as straightforward DLUFUDIWZLOOEHPRUH of the right people and equipment to carry as it used to be. Then there are sanctions expensive” out last-mile logistics; the importance UHJLPHVUHODWLQJWRFRQÁLFW]RQHVVXFKDV of good partners, government support, South Sudan, where the EU and US are and possibilities such as the creation of among those imposing sanctions – and Dan Morgan-Evans a makeshift runway are some of the ele- they’re not necessarily all steering in the ments that come into play. same direction. The banks tend to run However, Morgan-Evans believes that DZD\IURPWKLVµKHVD\VVRÀQDQFLQJFDQ aid is “more accessible” now than in be a problem. previous years because “people know On the other hand, Leppännen points where to go and how to get it”. Plus, out that “air freight tends to be most the actual transport involved is more visible to the public in emergency relief efficient. The rise of the Middle Eastern efforts” – and, adds Morgan-Evans, this carriers and the B777 passenger air- visibility in the news media can lead to an craft with its huge bellyhold cargo pay- increase in public donations to help fund load mean that cargo can be delivered operations. QQQ 6 CARGO AIRPORTS AIRLINE SERVICES 6XPPHU CHARTER MARKET FOCUS Heavyweights divorce The end of the Ruslan International joint venture brings the world’s two main An-124 operators, Antonov Airlines and Volga-Dnepr Airlines, back into direct competition make up just a small fraction of the whole air cargo market, there are few alterna- tives for certain types of jobs, and so the future availability and pricing of these air- craft is a big deal to the air cargo charter market. The break-up of the Ruslan Interna- tional partnership is understood to have been politically rather than commercially motivated and that it was Antonov that terminated the relationship, as a result of the political tensions between Ukraine and Russia. Antonov reportedly retaliated against attempts by the Russian Air Force and Vol- ga-Dnepr’s to use an Ilyushin Design Bu- reau facility to carry out maintenance ser- vices on locally based An-124s. Although, The Antonov Airlines UK team (Left to Right): Paul Furlonger, Director, Volga-Dnepr has since stressed that the 0DUWLQ*ULIÀWKV&RPPHUFLDO0DQDJHU1DWKDQ:ULJKW,7 )DFLOLWLHV0DQDJHU group’s collaboration with Antonov “will 3DXO%LQJOH\&RPPHUFLDO0DQDJHU'P\WUR.XUNR/RDG3ODQQLQJ0DQDJHU *UDKDP:LWWRQ0DQDJLQJ'LUHFWRU'PLWUL\$QWRQRY&KLHI3LORW2OHNVLL continue for the technical aspects of air- Budovitskyi, Assistant VP, and Michael Goodisman, Business Development Director ZRUWKLQHVVDQGÁLJKWVDIHW\VXSSRUWRILWV $QÁHHWµ he world’s two main opera- aircraft, the companies would be able to tors of the unique An-124 improve their use and increase availabili- heavylift cargo aircraft, ty. The system would also increase the life T Antonov Airlines and Volga- of the aircraft and reduce maintenance Dnepr Airlines, on 31 De- needs and costs. cember terminated their 10-year ‘Ruslan The companies had argued that there International’ sales and marketing joint- ZRXOG EH FRVW EHQHÀWV WR FXVWRPHUV LQ venture partnership and individually took part due to better aircraft scheduling for back full control of marketing, sales, and front-haul and back-haul work, although operational management of their respec- in practice some customers complained, WLYHÁHHWV anecdotally, that charter prices for the New sales structures The original rationale for forming the airlines’ An-124s rose following the forma- Commenting on the implications of the partnership in 2006 had been that both tion of the partnership, allegedly because separation, Volga-Dnepr said it has “the airlines each had so much aircraft capac- of reduced competition in the market. full capability to continue to support all ity tied up in long-term contracts with gov- At the time, these 17 aircraft made up existing customer contractual obligations”. HUQPHQWV WKDW LW ZDV EHFRPLQJ GLIÀFXOW around three quarters of the world An-124 Meanwhile, Antonov announced that it to meet the level of demand for ad hoc ÁHHWRIDURXQGFRPPHUFLDOO\DYDLODEOH was putting in place a UK-based team to capacity. By co-ordinating the movements aircraft. But the collapse of Polet in 2014 lead its global sales and operations. The RIWKHFRPELQHGÁHHWRI$QV leaves little competition to Antonov Air- new sales and operations team, Dreamlifts belonging to Russia’s Volga-Dnepr and lines and Volga-Dnepr Airlines in the sup- Ltd (trading as Antonov Airlines), would seven to Ukraine’s Antonov) and other ply of An-124 aircraft. And although they be “managed by an international group of 6XPPHU CARGO AIRPORTS AIRLINE SERVICES CHARTER MARKET FOCUS well-known experts from the outsize and because of that. In some ways, that af- heavyweight cargo industry, with decades fects the aerospace market as well, be- of experience between them”, promising “a cause a lot of oil and gas companies will seamless transition for its customers in the use helicopters to survey what they’re global supply chain and a continuation of its doing and because the oil and gas mar- ÁH[LEOHDQGKLJKO\SHUVRQDOVHUYLFHµ kets have gone down, that affected the CAAS asked Paul Bingley, commercial helicopter market as well. director of Antonov Airlines UK, about “If you go back ten years, the majority the transition and the prospects for the of the business was military-related [due company after taking back sole control of to the Afghanistan and Gulf wars]. That’s marketing and operations for its aircraft. gone now.” He estimates that around 40% “It was obviously a very big change of the company’s business is currently for everyone; we’ve been together since aerospace-related. 2006,” Bingley said. “The challenges “A lot of the satellites that are going ZHUHPDLQO\ORJLVWLFDODVLQPRYLQJRIÀF into space are civilian, not military; we es, moving staff – but it was a quite seam- don’t really carry a lot of military satellites less operation. It hasn’t taken that long at î PDLQO\ WHOHFRPPXQLFDWLRQV JURXQG all for us to settle in. We’ve all been doing mapping; even (satellites) that survey the this for a long time anyway, so it’s not like gravitational pull.” it was a major change really; we’re still He says the aviation industry also tends talking to the same customers, which is to be on a long-term upwards spiral, with the most important thing. The customers Boeing and Airbus achieving steady sales still know us because we’ve been working of aircraft to carriers in different parts of with them for a long time.” the world. “A lot of those companies are He said re-establishing the airline in the He also highlights the ‘open skies’ air making parts in different countries. So market as a separate entity had been rel- services agreement signed in 2015 be- WKDW·V DQ RSSRUWXQLW\ IRU XV WR Á\ WKRVH atively straightforward. “There have been tween Ukraine and the US as a potential parts,” Bingley notes. absolutely no problems at all, and we are competitive advantage for ad hoc char- forging ahead now. We’ve got a lot of good ters to or from the US. Wider logistics market customers… we still talk to the brokers Although Antonov and Volga, when they He says Antonov’s business is relatively un- and the forwarders that we were talking formed their partnership 10 years ago affected by other recent changes or trends to when we were at Ruslan, so it’s been emphasised it would help extend the life or developments within other parts of the really positive.” of the aircraft, this life does not seem un- air cargo or logistics market. Bingley said the company is currently der any immediate threat. “The AN-124s “We’re really a different market from your operating seven An-124s on a regular were built in the 1990s, but its life was other standard airlines and companies like EDVLV WZR RI ZKLFK DUH PRGLÀHG WR DF extended, so it’s 19, or 20 years,” said that,” says Bingley. “We get affected in cept higher payloads of up to 150 tonnes, Bingley. “So it’s going to be, for most of some ways, the oil and gas industry being along with one Antonov-22 (the world’s the aircraft, two decades. Most of them one, but we’ve made up for it in terms of ODUJHVWWXUERSURS DQGRQH$QîWKH are being upgraded now with the Western aerospace revenue. There is an Antonov unique-capability Mriya with a 250-tonne avionics – there will come a time when the Salis project, on behalf of NATO and the EU payload. “We’ve got a couple of other lit- ÁLJKWFUHZVDUHUHGXFHGIURPVL[WRIRXUµ countries. That is carrying military goods tle types of aircraft that we don’t generally for NATO and for the EU.” market so much for the West; it’s usually Market update In terms of his expectations for 2017, done from Kiev,” he adds. In terms of the main characteristics of the Bingley says: “To build relationships with He describes the current market as air cargo charter market, or Anotonov’s sec- the customers. We’ve obviously got es- “hard”, noting: “It’s been hard for a lot tion of that market, Bingley says: “Over the tablished relationships anyway; nothing of airlines… but we get lots of enquiries last two or three years, aerospace has been has been affected by what has happened for charters. We have no real geographi- a big market for us. So: satellites, aircraft with us and Ruslan. Our concentration is cal limitations, apart from the fact that engines, helicopters… on maintaining, developing and improving ZHFDQ·WÁ\RYHU5XVVLD%XWWKDW·VQRWD “Obviously oil and gas has suffered relationships where we can. The way it’s problem, most of the time.” DQG ZH KDYHQ·W SLFNHG XS PDQ\ ÁLJKWV going so far is really very good.” QQQ 8 CARGO AIRPORTS AIRLINE SERVICES 6XPPHU You like innovative logistics solutions. That‘s why I love my job. abc XL transportation of vehicles noseloading PGA/PGF Q6, AKE aviation aircraft engines carriage of pipes drilling equipment abc PHARMA unbroken cool chain +4 – +29°C highest priority abc FRESH ƥS[IVWƤWLGLIIWI temperature sensitive special monitoring packaging solutions abc DG JYPPGSQTPMERGI[MXL IATA DG regulations lithium batteries abc CARE on-board cargo attendants special handling facilities HMA horse box abc VALUABLE EVX[SVOWPY\YV] valuables safe and secure dedicated storage area WORLDWIDE CONNECTIONS WITH OUR GLOBAL ROUTE NETWORK HIGH LEVEL OF ON TIME PERFOMANCE HIGHLY SKILLED TEAM OF CARGO EXPERTS TO SOLVE ANY LOGISTICS CHALLENGE MODERN ALL-CARGO BOEING 747 FLEET ROAD FEEDER SOLUTIONS TO TAKE CARGO FURTHER THAN JUST THE AIRPORT Get in touch with us: www.airbridgecargo.com AIRPORT FOCUS: CVG Amazon set for take-off at CVG Cincinnati/Northern Kentucky Airport prepares for a major cargo ERRVWDVHFRPPHUFHJLDQW·VIUHLJKWHUÁHHWPRYHVLQ LQFLQQDWL1RUWKHUQ .HQ ZKLOH $PD]RQ LV EXLOGLQJ LWV RZQ 86 DLU and operate the aircraft for Amazon, add- WXFN\ $LUSRUW LV VHW WR KXE DW &9* RQ ODQG WKDW '+/ KDG ´ÀUVW LQJÀYHPRUHDLUFUDIWODWHUWKLV\HDU$76* UHFHLYH DQ H[WUDRUGLQDU\ ULJKWVµRQ´LQWKHLQWHULPZH·OOEHKHOSLQJ ZLOODOVRFRQWLQXHWRSURYLGH´JDWHZD\DQG C ERRVW WR LWV FDUJR RS WKHPRQDWHFKQLFDOEDVLVµ ORJLVWLFVVHUYLFHVµIRUWKH$PD]RQÁLJKWV HUDWLRQV IURP 0D\ DV $PD]RQ KDV QRZ FRQÀUPHG WR CAAS DWDOOORFDWLRQVH[FHSW&9*VHUYLFHVWKDW $PD]RQEHJLQVLWV86DLUKXERSHUDWLRQV WKDWLW´ZLOOKDYHDSDUWQHUVKLSZLWK'+/µ LQFOXGHPDUVKDOOLQJXQORDGLQJUHIXHOLQJ DW 1RUWK $PHULFD·V HLJKWKODUJHVW DQG DW&9*ZKHQLWPRYHVLWVDLUKXERSHUD DQGORDGLQJRIWKHDLUFUDIWDORQJZLWKOHDV IDVWHVWJURZLQJFDUJRDLUSRUWLQZKDWZLOO WLRQVWKHUHIURPQHDUE\:LOPLQJWRQ2KLR LQJVSDFHDWWKHDLUSRUWSOXVKDQGOLQJDQG LQLWLDOO\EHDSDUWQHUVKLSZLWKWKHDLUSRUW·V ,/1 $PD]RQKDGEHHQWULDOOLQJDQGEXLOG ZDUHKRXVLQJIUHLJKW FXUUHQWELJJHVWFDUJRWHQDQW'+/ZULWHV LQJXSLWVDLUH[SUHVVDFWLYLWLHVDW,/1VLQFH %XW DW &9* WKRVH ´JDWHZD\ DQG ORJLV :LOO:DWHUV ODWH LQ SDUWQHUVKLS ZLWK DLUFUDIW WLFVVHUYLFHVµIRU$PD]RQZLOOEHRSHUDWHG $IWHUWKHHFRPPHUFHJLDQWDQQRXQFHG RSHUDWRUDQGJURXQGVHUYLFHVSURYLGHU$LU RURUJDQLVHGE\'+/&$$6XQGHUVWDQGV LQ )HEUXDU\ WKDW LW KDG FKRVHQ &9* WR 7UDQVSRUW6HUYLFHV*URXS $76* îXVLQJ EXLOGDORQJWHUP86DLUKXELWJUDGXDOO\ JURXQGDQGVRUWLQIUDVWUXFWXUHWKHUHDOVR DHL’s new day-sort operation HPHUJHG WKDW LQ WKH VKRUW DQG PHGLXP SUHYLRXVO\XVHGE\'+/îEXWUHYHDOHGLQ ,Q0DUFK'+/UHYHDOHGWKDWLWZDVUHFUXLWLQJ WHUP$PD]RQZRXOGQHHGJURXQGVXSSRUW )HEUXDU\ LWV SUHIHUHQFH IRU EXLOGLQJ LWV DURXQG VWDIIIRULWVKXEDW&9*UHTXLU WKHUH IURP '+/ ZKLFK VLQFH KDV ORQJWHUPKXEDW&9* LQJ WKHP WR EH DYDLODEOH IRU ZRUN IURP XVHG&9*DVLWVDLUKXEIRUWKH$PHULFDV ,QWHUPVRIWLPLQJV$PD]RQGHFOLQHGWR 0D\ ´DV WKH FRPSDQ\ FRPSOHWHV WKH ODW %RWK$PD]RQDQG'+/KDGEHHQUHOXF FRQÀUPD0D\VWDUWGDWHDW&9*EXWVDLG HVWPLOOLRQH[SDQVLRQRILWV$PHULFDV WDQWWRFRQÀUPWKHDUUDQJHPHQWRUUHYHDO ´:HDUHORRNLQJIRUZDUGWRWKHÀUVW$PD KXEµ ,W DGGHG ´7KH H[SDQVLRQ WR D QHZ WKH GHWDLOV H[WHQW RU GXUDWLRQ RI WKH ]RQSODQHVDSSHDULQJDW&9*WKLVVSULQJµ GD\VRUWRSHUDWLRQDQGSURMHFWHGJURZWKLQ SDUWQHUVKLSDOWKRXJKRQH'+/VRXUFHUH $OWKRXJKWKHFRPSDQ\GHFOLQHGWRSUR VKLSPHQWVLVH[SHFWHGWRLQFUHDVHWKHKXE·V YHDOHGWKDW'+/´KDVEHHQFRQWUDFWHGWR YLGHDQ\IXUWKHUGHWDLOVWKHEURDGRXWOLQH ZRUNIRUFHWRPRUHWKDQIURPWKHFXU SURYLGHDUDQJHRIVHUYLFHVWR$PD]RQDW RI WKH DUUDQJHPHQWV KDYH JUDGXDOO\ EH UHQWHPSOR\HHVµ WKH'+/&LQFLQQDWL+XELQFOXGLQJVRUWLQJ FRPHDSSDUHQW6RXUFHVFORVHWR&9*DQG 0LNH3DUUD&(2IRU'+/([SUHVV$PHUL RSHUDWLRQV DQG JURXQG KDQGOLQJ IRU WKH $76*VD\WKH\H[SHFWWKHVWURQJ% FDVVDLGWKHFRPSDQ\ZDV´H[FLWHGWROHY $PD]RQDLUQHWZRUNµ$QGDWDQLQYHVWRU IUHLJKWHU DLUFUDIW $76* KDG EHHQ RSHUDW HUDJHRXUQHZO\H[SDQGHG$PHULFDVKXEµ UHODWLRQV FRQIHUHQFH LQ 0DUFK '+/ ([ LQJIRU$PD]RQDW,/1WRPRYHLQ0D\WR DOWKRXJKKHGLGQRWH[SODLQSUHFLVHO\ZK\ SUHVV&(2.HQ$OOHQDOVRFRQÀUPHGWKDW &9* ZKHUH $76* ZLOO FRQWLQXH WR OHDVH WKH VXGGHQ H[SDQVLRQ RI WKH KXE·V 10 CARGO AIRPORTS AIRLINE SERVICES 6XPPHU Delivering Value for 25 Years. And Counting. It’s been an exciting quarter-century of innovation and of Boeing 747s, 777s, 767s, 757s, and 737s, supported by growth for Atlas Air, and we thank you, all of our customers, our global infrastructure and dedicated employees, off ers for your support and partnership. unparalleled levels of on-time service, safety, and reliability. We continue to set our sights higher, bringing new, Find out how we can assist with your leasing needs— innovative, value-added solutions to more customers in and, together, reach new heights of success in the next all market segments. Our technologically advanced fl eet quarter-century. CONTACT US TODAY www.atlasair.com | [email protected] | +1.914.701.8000 AIRPORT FOCUS: CVG ZRUNIRUFHDQGWKHLQWURGXFWLRQRIWKHQHZ GD\WLPHVRUWRSHUDWLRQZDVQHHGHGIURP 0D\+RZHYHUWKHUHDVRQVIRUWKH0D\ H[SDQVLRQ KDYH EHFRPH LQFUHDVLQJO\ DS SDUHQW $ VRXUFH FORVH WR '+/ WROG ORFDO QHZVVHUYLFH7KH/DQH5HSRUW ´'+/ZLOO VWLOOGRWKHLUQLJKWWLPHZRUNEXW$PD]RQ ZLOOXVHWKDW IDFLOLW\ GXULQJWKHGD\WLPH 7KDW·VZK\'+/LVKDYLQJDELJKLULQJVXUJH IRUDGD\WLPHVKLIWµ '+/·VODWHVWH[SDQVLRQDW&9*ZLOODOVR IHDWXUHVDQHZQRUWKUDPSWKDWLVEXLOWRQ KHFWDUHV DFUHV RIODQGDQGSURYLGHV SDUNLQJ VSDFH IRU DGGLWLRQDO SODQHV EULQJLQJWKHKXE·VWRWDOFDSDFLW\WRDLU FUDIW JDWHV 7KH H[SDQVLRQ DOVR LQFOXGHV DGGLWLRQDO DXWRPDWHG VRUWLQJ FDSDELOLW\ DHL has invested more DQGQHZUHORDGSRVLWLRQVWKDW´ZLOOHQ WKDQPLOOLRQLQLWV KDQFHWKHKXE·VDELOLW\WRKDQGOHWKHJURZ LQJVKLSPHQWYROXPHH[SHFWHGWREHVHHQ $PHULFDVKXEDW&9* LQ WKH 8QLWHG 6WDWHV DQG WKURXJKRXW WKH which serves North and $PHULFDV ,W DOVR DGGV QHZ VWRUDJH DQG ZDUHKRXVH VSDFH IRU UDPS HTXLSPHQW 6RXWK$PHULFDDVZHOO DQGVKLSSLQJFRQWDLQHUVµ'+/VDLG DVWKH&DULEEHDQ 6LQFH '+/ KDV LQYHVWHG PRUH WKDQPLOOLRQLQLWV$PHULFDVKXEDW DLUSRUWZLWKSURYLVLRQVWRSURYLGHXSWR WKDW´WKHGHFLVLRQWRFROORFDWHDWWKHVDPH &9*ZKLFKVHUYHV1RUWKDQG6RXWK$PHU DFUHV KHFWDUHV RIODQG DLUSRUW WKDW KRVWV '+/·VKXE LV PRUH WKDQ LFDDVZHOODVWKH&DULEEHDQ,Q'+/ $VNHGLQ)HEUXDU\DERXWWKHWLPHOLQHV FRLQFLGHQFHµ SRLQWLQJ RXW WKDW WKH VDPH FHOHEUDWHGWKHFXOPLQDWLRQRIDPLO IRULWVSODQV$PD]RQVDLG ´2XULQYHVW $&0, FDUULHUV KDYH EHHQ XVHG E\ ERWK OLRQ IRXU\HDU HIIRUW WR HQKDQFH LWV &9* PHQWVDQGMREFUHDWLRQDW&9*ZLOORFFXU %XW :HEEHU VDLG $PD]RQ KDG DOVR IDFHG IDFLOLW\´WRPHHWWKHJURZLQJLQWHUQDWLRQDO RYHU WLPH :H KDYH QRW \HW DQQRXQFHG DVLPLODUGHFLVLRQWRWKHRQH'+/IDFHGLQ VKLSSLQJ GHPDQG RI ODUJH PXOWLQDWLRQDO WLPHOLQHVIRUFRQVWUXFWLRQEXWZHKRSH DOVRFRQFOXGLQJWKDWWKHEHQHÀWVRI FRUSRUDWLRQV DV ZHOO DV VPDOO EXVLQHVV WR EUHDN JURXQG VRRQµ +RZHYHU &$$6 RSHUDWLQJDWDIXOOFRPPHUFLDODLUSRUW &9* FXVWRPHUVµZKLFKLWGHVFULEHGDWWKHWLPH XQGHUVWDQGV WKDW WKHUH DUH VWLOO VRPH RXWZHLJKHGWKRVHRIFRQWLQXLQJWRRSHUDWH DV´WKHFRPSOHWLRQRIWKH&9*KXEµ,QDG HQYLURQPHQWDOUHTXLUHPHQWVEHIRUHDQ\ DW DQ DLUSRUW ZLWK QR RWKHU VFKHGXOHG FDU GLWLRQWRLWVJOREDOKXEVLQ+RQJ.RQJDQG FRQVWUXFWLRQ FDQ EHJLQ ZLWK REVHUYHUV ULHUV ,/1 /HLS]LJ*HUPDQ\WKH&9*KXEFRPSOHWHV VSHFXODWLQJWKDW$PD]RQ·VRZQKXEID :KHQ $PD]RQ·V IXOO ÁHHW RI % ´WKHEDFNERQHRIWKH'+/LQWHUFRQWLQHQWDO FLOLWLHV DUH SUREDEO\ DW OHDVW D \HDU RU FDUJRDLUFUDIWOHDVHGIURPDQGRSHU QHWZRUNµWKHJURXSDGGHG WZRDZD\ DWHGE\$76*DQG$WODV$LUDUHRSHUDWLQJ IURPODWHDQDO\VWVH[SHFWWKHPWR Amazon’s long-term plan ILN rejection SHUIRUP DURXQG ÁLJKWV D GD\ 7KH :KHQ $PD]RQ LQ )HEUXDU\ DQQRXQFHG LWV $PD]RQDOVRGLGQRWH[SODLQLQGHWDLOZK\LW DLUFUDIW HDFK KDYH D PD[LPXP SD\ORDG SODQV WR FUHDWH D QHZ ´ORQJWHUPµ FHQWUDO KDG UHMHFWHG $76*·V KRPH DLUSRUW ,/1 LQ RIDURXQGWRQQHVSRWHQWLDOO\FUHDWLQJ LVHG86DLUFDUJRKXEDW&9*´WRVXSSRUWLWV IDYRXURIDQHZORQJWHUPDLUKXEDURXQG GDLO\FDSDFLW\RIWRQQHV2IWKRVH JURZLQJÁHHWRI3ULPH$LUFDUJRSODQHVµWKH NLORPHWUHVVRXWKZHVWRI,/1DW+HEURQ²EH IUHLJKWHUVDUHFXUUHQWO\LQVHUYLFH FRPSDQ\ JDYH QR GHWDLOV DERXW ZKHQ WKH \RQGKLJKOLJKWLQJ´DODUJHVNLOOHGZRUNIRUFH IRU $PD]RQ ² VXSSOLHG E\ $76* DQG QHZ IDFLOLW\ ZRXOG RSHQ ZKDW FDSDELOLWLHV FHQWUDOL]HGORFDWLRQZLWKJUHDWFRQQHFWLYLW\ RQHE\$WODV DQGFDSDFLW\LWZRXOGKDYHDQGZKRZRXOG WR RXU QHDUE\ IXOÀOPHQWORFDWLRQV DQG DQ 'RXEOHGLJLW \HDURYHU\HDU JURZWK LQ RSHUDWHLW+RZHYHUVWDWHRIÀFLDOVVDLG$PD H[FHOOHQWTXDOLW\RIOLYLQJIRUHPSOR\HHVµDW IRXU RI WKH ODVW ÀYH \HDUV KDV LQFUHDVHG ]RQSODQVWRLQYHVW ELOOLRQLQWKHKXE +HEURQ $QDO\VWV LQFOXGLQJ DLUSRUW FRQVXOW DQQXDO FDUJR WKURXJKSXW DW &9* WR DQGKDVDJUHHGWRD\HDUOHDVHZLWKWKH DQW0LFKDHO:HEEHUQRWHGEDFNLQ)HEUXDU\ WRQQHVLQQQQ CARGO AIRPORTS AIRLINE SERVICES 6XPPHU ©2017 United Airlines, Inc. All rights reserved. SM and patients worldwide Connecting products pharmaceutical shipments from start to finish. TempControl protects your valuable unitedcargo.com 14 CUSTOMER FOCUS CARGO AIRPORTS The future of The futureof How great is the threat from disruption to the traditional How greatisthethreatfromdisruptiontotraditional AIRLINE SERVICES forwarding forwarding 6XPPHU air freightmodel? Megan Ramsay reports CUSTOMER FOCUS peculation has mounted Jonathan Clark, regional director for experimenting with using drones for do- in the last few years and Africa at carrier Cargolux, divides the tra- PHVWLFGHOLYHULHV7KHÀUVW3ULPH$LUGHOLY months about the sustain- ditional forwarding community into three ery within the US took place in December S ability of the traditional air categories: small forwarders that are 2016 and took 13 minutes “from click to freight and wider freight adaptable to change and usually serve delivery”, the company claims. And there forwarding model and its vulnerability to niche markets; multinationals like Schen- are various other examples, although the disruption from new technology or tech- ker that offer a complete supply chain closest to demonstrating commercial via- powered players. The classic model for from inventory to storage to booking to bility have been deployed in niche sectors, the transport of goods links the customer delivery; and medium-sized forwarders, notably the delivery or urgent medical with various modes of transport via a who he believes face the biggest risk – VKLSPHQWVWRGLIÀFXOWWRDFFHVVORFDWLRQV forwarding agent responsible for organis- focusing neither on a niche market nor in areas with low population densities. ing the movement of items from origin to on the total supply chain, their position is In response to the increasing competi- destination. This process does increasingly precarious, Clark noted in a panel debate tion from e-commerce and the integrators show signs of being potentially disrupted at this year’s Air Cargo Africa conference. that serve that market, there are forward- by online start-ups who are aiming to ‘cut The rise of e-commerce has certainly ers in the traditional cargo arena who now out the middle man’, although their impact led to some interesting developments that offer e-commerce platforms, whether on a has been minimal so far. So, what does the threaten or promise to profoundly change business-to-business or business-to-con- future look like for today’s forwarders, and the freight transport market. Online re- sumer basis. “If you don’t change you will will many of them even exist in 10 years’ tailer Amazon, for example, is among die,” says David Logan, CEO of the South time – at least in their current form? a number of players that has begun African Association of Freight Forwarders. Air Cargo Handling Systems SOLVING YOUR CARGO HANDLING CHALLENGES www.saco.aero SACO Industrieweg 2 P.O. Box 47 T +31 (0)492 430 059 [email protected] a division of SMA BV AIRPORT EQUIPMENT NL-5731 HR Mierlo NL-5730 AA Mierlo F +31 (0)492 432 713 www.saco.aero 6XPPHU CARGO AIRPORTS AIRLINE SERVICES 15 CUSTOMER FOCUS “You have to go niche if you are a small or the entire chain and improve visibility? If Collaboration medium-sized forwarder. You need to es- so, they would transform the market.” The problem of collaboration in a tablish an e-commerce platform,” he adds. He makes the distinction between Ama- competitive business environment is 2IFRXUVHWKHVXUYLYDORIWKHÀWWHVWLVD zon offering last-mile delivery to support longstanding. In order to move from an “egosystem to an ecosystem”, as theory that can be applied to every busi- its own business as opposed to offering Fraport senior vice president, cargo, ness, points out Vineet Malhotra, director that service as a business in itself. So, Dirk Schusdziara, puts it, a lot of trust is required. of IT provider Kale Logistics Solutions. could the former evolve into the latter? “Airlines want to be closer Evolution necessarily involves speciali- ´7KH ÀUVW PLOH ODVW PLOH DQG FRQVROLGD to shippers in conjunction with forwarders, so they can tailor sation and he believes that IT “could be tion are done, but they don’t do the actual VHUYLFHVWRDFFRPPRGDWHVSHFLÀF the backbone for further specialisation main transport,” he says. “Logically, this markets, demands, needs and trends – especially in sectors like – which may be needed as the market is the next step for them to do.” pharmaceuticals,” remarks Clark. changes”. And there are signs of this already hap- “Airlines do not have the funds to create the required infrastructure, so IT, and technology in general, offers the pening, Amazon watchers note. the forwarder will always be there.” chance for greater transparency, improved One strength of the start-ups is their 7XUKDQ2]HQFKLHIFDUJRRIÀFHU HIÀFLHQF\ DQG SHUKDSV OHVV IUDJPHQWD adaptability. A company that started out for Turkish Airlines, points out: “As long as forwarders act as transitional tion across the air freight industry. Given offering last-mile delivery on the back intermediaries, that won’t happen.” the multitude of small and medium-sized of the e-commerce boom might still be But he adds: “When forwarders act as partners, to orchestrate the movement forwarders, small shipments, different ÁRXULVKLQJ WRGD\ LI LW ZDV ZLVH HQRXJK of goods, then they add value.” governmental organisations, documenta- to change tack a little when that boom tion and other actors in the chain, good slowed. But Fujike does not see these ´$LUOLQHVGRQRWKDYH communication is essential. IT needs to disruptors as an immediate threat for for- the funds to create the connect all parties – right down to the warders like Kuehne + Nagel. “They have smallest player involved, says Malhotra. good ideas, but they lack execution and UHTXLUHGLQIUDVWUXFWXUH Even the smallest forwarder needs to global reach,” he says. “They’re often fo- VRWKHIRUZDUGHUZLOO have an IT-enabled service and platform cused on a niche market, not the big pic- in order to do business successfully now ture,” he adds, echoing Malhotra’s point. DOZD\VEHWKHUHµ and in the future. Given that niche focus, some argue that start-ups may pose more of a threat Jonathan Clark Game-changer? to smaller forwarders, who will have to 6WLOODVNV0DUFHO)XMLNH693IRUDLUORJLVWLFV work harder to compete. But it may be – rates, airlines, airports, routes… They products and services at forwarder Kuehne that there will continue to be a role for are the “architects of transport”, he says, + Nagel, is all the talk about disruptors just existing and new players. Georges Biwer, borrowing a phrase from FIATA (the Inter- hype? “Shippers believe these start-ups can vice president of EMEA for Russian car- national Federation of Freight Forwarders reduce cost – they are smarter and cheap- rier AirBridgeCargo Airlines, considers: Associations), and as such they will con- er. How will they change the game? Or will “The small guys still exist because they tinue to hold an important place in the they die down?” he asks. DUH G\QDPLF DQG ÁH[LEOH DQG WKH\ ZRUN supply chain as time goes on. Fujike goes on to explain: “There are together in associations. All newcomers In fact, Biwer believes that forwarders various types of start-ups. The majority have a role – they challenge the system; will play a more important role in the fu- are simply price comparison tools. Then they innovate; they stimulate.” ture than they do now. “Airlines can’t take you have virtual forwarders like Flexport. over the role of forwarder – they’re asset- You also have consolidation start-ups, Value driven, and they don’t have the manpow- who work to get better rates for the small The impetus for change ultimately comes er,” he notes. “There will be more syner- guys. Finally, you have the start-ups that from end customers, whose increasing de- gies between forwarders and airlines in focus on facilitation of document han- mands for speed, reliability and transpar- future to cope with new ways of doing dling and payment.” It is unclear which of ency are driving shippers to realign their business such as e-commerce.” these, if any, will make a big impact and supply chains. Logan wonders whether In conclusion, Ozen remarks: “It’s all which will disappear, he says. forwarders ought not to imitate the models about creating value and this will become Malhotra points out that each start-up of the start-ups in order to ensure they can more intense. Those who create value exists because it addresses a gap. “Un- compete. for the shipper – or even the consumer – less they are more horizontal, they will fail Forwarders, however, add value through will survive. Shippers will always need a from within,” he says. “Can they connect their expert knowledge of the industry strong partner to run their logistics.” QQQ 16 CARGO AIRPORTS AIRLINE SERVICES 6XPPHU CUSTOMER FOCUS Drivers of change The acceleration of product recall is one factor that has led to an increase in demand for air freight from the automotive sector, writes Megan Ramsay atterns of demand for air Fraport, told a panel discussion on the Weil claimed: in 2016, for instance, there freight between Germany automotive market in the context of trade was an 8.5% year-on-year increase in traf- and South Africa from the between Germany and South Africa that in ÀFEHWZHHQ)UDQNIXUWDQG-RKDQQHVEXUJ P automotive market illus- terms of imports into South Africa, Germa- with 35,000 tonnes being moved on the trate some wider trends and ny is second after China. The automotive route. issues affecting this important vertical in sector represents South Africa’s biggest But the full picture is more complex. An- Europe, Africa and globally. import from Germany and its second-big- dries Botha, senior manager for strategic At this year’s Air Cargo Africa confer- gest export to the European country. And planning for Toyota South Africa Motors, ence, Roland Weil, vice president for Frankfurt and the surrounding region are observed: “The South African vehicle mar- cargo sales at German airport operator RI SDUWLFXODU VLJQLÀFDQFH LQ WKLV VHFWRU ket is under severe pressure. It’s been www.leisurecargo.com TOTAL CARGO MANAGEMENT Leisure Cargo offers unrivalled worldwide access to the valuable cargo capacity to 400 key destinations of a wide range of international & regional airlines. We specialize in turnkey cargo sales, operations & service, as well as offering exclusive & personalized bespoke cargo management. May 9 - 12, 2017 Visit us! Messe München Hall B1, Booth 305 6XPPHU CARGO AIRPORTS AIRLINE SERVICES CUSTOMER FOCUS shrinking over the last few years – but GDLO\ÁLJKWVWRJHWWKLQJVLQWRWKHIDFWRU\ weight-restricted or volume-restricted – there are opportunities in a number of quickly,” she said. it depends on the route and the aircraft. economies in Africa. Usually we run out of space way before we “The parts market, however, is growing Driver of change run out of payload.” – as people keep their vehicles longer, The panel agreed that there seems to be a The problem of capacity can be particu- they require more maintenance and they modal shift from sea freight to air freight be- larly acute on some occasions such as dur- are installing OEM (original equipment cause of the number of ocean carriers that ing severe weather conditions that cause manufacturer) parts because other parts have gone under of late. On top of that, Bo- widespread damage to vehicles. In such don’t last.” tha cited the acceleration of product recall instances, Genlloud pointed out: “All OEMS The main reason for choosing air freight as a driver of change in the motor industry, are in the same boat. If they are all reorder- over sea freight, of course, is speed. If noting: “There’s more effort up front now to ing at the same time, then there can be parts are needed urgently, then there is identify problems early and deal with them OLPLWHG FDSDFLW\ WR Á\FRPSRQHQWV LQ 7KLV no other option. A major consideration in quickly – so there’s lots of pressure on us to can result in a bidding war to secure space.” day-to-day operations, though, is cost. move parts by air.” And the balance of supply and demand Botha explained: “It costs 10 times as Some items have to be moved by sea also has its effects on the airlines, of much to move something by air as op- though, such as batteries for hybrid cars, al- course. As carriers try to sustain a 365-day posed to sea, so we restrict air freight to though these vehicles are not being strongly VHUYLFHWKH\PXVWFRQWHQGZLWKÁXFWXDWLQJ 5% and only use it as a last resort. Our adopted in the South African market. cargo volumes as well as unsteady passen- problem is that we make a promise to ger numbers, which affect the load factor the end client and we have to deliver on Choke points and available space. Small markets can be time. If we pay for a service, we need the While air freight is speedier than ocean especially prone to the effects of low pas- lead-time promise kept. If a sea freight shipping, it does have its choke points. senger demand and consequent low belly shipment is a day late, that’s one day out Truck waiting times, Customs procedures, capacity. Furthermore, OEMs’ volume fore- of 70 and we can catch up. But if an air paper documentation and the use of differ- casts can change drastically at very short freight delivery is a day late, that’s one ent IT and communication platforms all slow QRWLFHPDNLQJWKHIRUZDUGHU·VMREGLIÀFXOW day out of seven.” the process down, Botha outlined. too, so communication is vital. Anchen Genlloud, head of automotive Giuseppe Tarantini, regional general Summing up, Botha reiterated that for Southern Africa at logistics company manager cargo Europe at South African from the OEM’s perspective, inventory Kuehne + Nagel, commented that having Airways Cargo, said that getting a ship- management that relies on ocean ship- a vehicle off the road can be costly to the ment from Frankfurt to Johannesburg ping schedules covers the day-to-day end client, making ad hoc air freight an takes less than 36 hours, including se- running of the operation at minimal cost, essential option sometimes. curity. But airports can be slow: for in- while the decision to use air freight is in- ´3ODQQLQJFRPHVLQWRWKHGHFLVLRQ²D stance, there may be congestion on the evitably unpredictable because this more ‘C’ class service can hang on, but for ‘A’ or way from Cargo City Süd to North terminal expensive and faster option is reserved ‘B’ service or urgent shipments, we need at Frankfurt. In addition: “Flights can be for emergencies. QQQ 18 CARGO AIRPORTS AIRLINE SERVICES 6XPPHU We deliver the phone… and the satellite Big or small, simple or complex, we make sure your cargo is always delivered as promised. From the latest smartphone to the most sensitive satellites, we’re the only people you need to call. Our in-house engineers can design and manufacture special frames and loading systems to ensure the secure transportation of your cargo, while our logistics specialists can offer you total peace of mind by managing your most complex cargo deliveries door-to-door, anywhere in the world. So, whether you need to move the phone or the satellite, we’re with you all the way. www.volga-dnepr.com DELTA CARGO DELTA CARGO AIRLINE INTERVIEW: AIRLINE INTERVIEW: Taking the initiative Operational reliability and a customer-focused mindset require staff empowered to make the right decisions, says Delta’s cargo president Gareth Joyce ince the arrival “That’s the only option, be- last May of Delta cause that’s the moment where Air Lines’ new it counts for a customer. So, S president of car- every individual needs to act go, Gareth Joyce, that way, take the opportunity; 'HOWD &DUJR KDV EHJXQ D ÀYH you have your authority and do year transformation programme the right thing for a customer.” with the primary objective of Delta Cargo’s transformation achieving operational consisten- programme is in part about cy throughout its global network. changing attitudes, but also Joyce, a native of South Africa involves changing processes who joined Delta from Mercedes- and technologies. “We need to Benz Canada, says the air freight Gareth Joyce double down on our greatest business is all about getting the strengths,” says Joyce, identify- product to the right place at the ing two key priorities: “Priority right time with a “customer-focused mindset”, with all one: operational reliability of delivery, end to end, the company’s investments now going towards achiev- that matches the airline’s world-class on time perfor- ing that. This means ensuring predictable quality, with mance metrics. Priority two: develop systems, tools one key element being to build and develop a team to and people focus to ensure that customer focus de- deliver that. velops in all that we do, from bookings to delivery.” “Every single member of our Delta Cargo team is He continues: “I want our customers to come to empowered to make decisions around customers,” us with new business because they know we’re the says Joyce. “You can’t wait for authorisation to make best. I’m challenging my teams to ask questions the right decisions for customers in a customer-cen- and deliver ideas that will make Delta Cargo head tric organisation; you have to make the right decision and shoulders above our competition in service in the moment. delivery. In a market that is oversaturated with 20 CARGO AIRPORTS AIRLINE SERVICES 6XPPHU May 9-12, 2017 Messe München Visit us! Hall B1, Booth 218 We are closer than you think. Challenge Nina at our booth. I am the INTUITION in your cargo. Nina Strippel, Manager Sales, Customer Service and Quality A profound knowledge and excellent references have been two reasons why we have decided to hire Nina Hampel two years ago. Four more reasons are: waltz, foxtrot, tango and samba. As a passionate dancer Nina is well aware that know-how does help to move – but to really get ahead together it also requires beat, caution and foresight. Count on LUG’s more than 50 years of experience and the precision and passion running in the blood of Nina. Challenge Nina Hampel. Dial: +49 (0) 69 698 19 - 525 We are closer AIRLINE INTERVIEW: DELTA CARGO capacity, if we get this right, we have a working to expand the programme across initiatives that will decrease paper by better chance that customers will bring its domestic and international network. making it easier for small and medium- their business to us through value crea- “Delta’s DASH Critical & Medical offers sized customers to submit electronic air tion and not just price.” premium domestic service for time-sen- waybills, our largest customer segmenta- Among the planned systems changes, sitive, small packages such as medical tion remaining to achieve 100%. There is Delta Cargo intends to piggyback on an commodities, legal documents, essen- a heavy focus on distribution channels for RFID system from the passenger side of tial machinery parts and ‘aircraft on the e-Booking and e-AWB, and we’ll be imple- Delta’s airline business that tracks the ground’ (AOG) components,” adds Joyce. menting new tools that will make it easier movement of goods throughout the jour- “If delivery is impacted by irregular oper- for customers to do business with us.” ney, using proximity scanning rather than DWLRQVVXFKDVOLPLWHGÁ\LQJGXHWREDG traditional barcode scanning. “We will be weather, the monitoring team will proac- Growth markets piloting RFID this year for Cargo, with full tively contact local airports to help coor- In terms of the growth segments, Joyce rollout expected next year,” says Joyce. dinate the export, transfer and import of notes that both domestic and international Other initiatives include developing all DASH Critical & Medical shipments.” mail continue to be a source of growth, a standard processes blueprint for all with e-commerce driving growth in small- warehouses and the launching of a GPS Digitalisation essential package shipments. Pharma, cosmetics, tracking product for high-value cargo that Delta Cargo is one of the world leaders in fresh produce, and fashion are also grow- allows Delta to know where the product is adopting IATA’s e-freight digitalisation pro- LQJîDQGHOHFWURQLFVUHPDLQVVWURQJEXWLV at any given time. gramme, topping the US carriers in terms of slowing down. “Delta Cargo in March introduced DASH QHWZRUNSHQHWUDWLRQOHYHOVîZKLFKKDYHH[ In terms of plans to target or improve &ULWLFDO 0HGLFDO WKH ÀUVW IXOO\ *36 ceeded 80% since early this year. Joyce says services for any of these segments or ver- enabled, same-day product offered by a Delta is completely committed to the effort ticals in 2017, Joyce says: “Our focus is on US freight carrier,” says Joyce. “The new DQGVHHVPXOWLSOHEHQHÀWV/LNHPDQ\QHZ our innovative product and service offer- service provides real-time tracking and developments, it has the early adopters, the ing as well as to listen and work with our monitoring of any eligible shipment, and followers, and the late adopters, he says, customers and freight forwarders to make customers can ship items up until 45 min- and eventually, those that aren’t using e- Delta Cargo much more customer-centric. XWHV SULRU WR VFKHGXOHG ÁLJKW GHSDUWXUH AWB will be at a competitive disadvantage. We are looking at growing our Pharma We’ve tailored and developed this product “We are number one in volume and pen- offering, as well as enhancing and differ- around our customer needs with the high- etration among the big carriers in the US, entiating our DASH products to enrich our est boarding priority of any Delta Cargo and we continue to push the envelope,” domestic offering.” product, and the fastest transit times in -R\FHVD\V´,WEULQJVRSHUDWLRQDOHIÀFLHQ Joyce says the launch of the DASH Criti- the logistics industry.” cy to us and a higher degree of accuracy cal and Medical product with its GPS-en- He says DASH Critical & Medical is now in documentation. It also brings improved abled tracking “was important, especially available from ten locations nationwide, security of the cargo shipping process as as this gives the fastest transit time in the namely: Atlanta, Chicago, Cincinnati, De- well as ensuring regulatory compliance. logistics industry”. He adds: “Internation- troit, LaGuardia (New York), Los Angeles, Through an electronic medium, we can ally, we are testing new services that bet- Memphis, Minneapolis, Rochester and Se- build in checks and balances.” ter meet the needs of our customers and attle, with service to 89 mainland US des- He adds: “Delta is top tier in e-AWB we look forward to sharing more details tinations and Hawaii. The company is also penetration, and this year we have many throughout 2017.” QQQ 22 CARGO AIRPORTS AIRLINE SERVICES 6XPPHU WE FLY DUBAI TO THE WORLD Oman Air Cargo - Courier service will ensure we deliver your consignment wherever you may be. Whether you’re sending packaged boxes or documents, rest assured that Oman Air Cargo will move your consignments with the shortest acceptance cut-off time at origin, and offer the highest loading and delivery priority at your chosen destination where applicable. With 24/7 tracking capability, you will know the moment your shipment has reached the world! Follow us, we fly Dubai to the world. Follow us, we’ll lead your way CARGO REPORT WORLD AIRLINE WORLD AIRLINE The recovery continues Selected carriers review and highlight key developments and trends in 2016 and 2017 CARGOLUX CLIMBS RANKINGS IN he last 18 months have been a roller-coaster ride for ‘VOLATILE 2016’ air cargo operators. In this World Airline Cargo Report 2017, selected &DUJROX[HPHUJHGDVRQHRIWKHIHZSURÀWDEOH ZLGHERG\DOOFDUJRFDUULHUVODVW\HDUUHSRUW T OHDGLQJLQWHUQDWLRQDODLUFDUJRFDUULHUVUHÁHFWRQWKH LQJDQHWSURÀWRI86PLOOLRQ(XURSH·VODUJHVW NH\ HYHQWV DQG WUHQGV RI DQG WKH ÀUVW SDUW RI DOOFDUJRDLUOLQHVDLG ´,QD\HDUGRPLQDWHGIRU WKHPDMRUSDUWE\ZRUU\LQJO\ORZ\LHOGVÀHUFH 2017, highlighting noteworthy developments within their own opera- FRPSHWLWLRQDQGRYHUFDSDFLW\WKHDLUOLQH tions and businesses and their plans and expectations for this year. H[SHULHQFHGDUREXVWIRXUWKTXDUWHURQHRIWKH VWURQJHVWLQPDQ\\HDUVµ General market trends highlighted include a weak start to 2016, Cargolux moved up two places in 2016 to with global freight volumes and pricing recovering in the second half the number six position in IATA’s Top 25 air cargo of the year, culminating in a strong fourth-quarter peak season. IATA carriers ranking for international scheduled freight tonne kilometres (FTKs) – the highest position the ÀJXUHVLQGLFDWHWKDWJOREDODLUIUHLJKWGHPDQGLQIUHLJKWWRQQHNLOR airline has held during its history. metres (FTKs) grew by 3.8% overall in 2016, outperforming forecasts Thanks in part to an exceptionally strong winter peak season, full-year scheduled FTKs grew by 10% and nearly double the industry’s average growth rate of 2% over the from 6.309 billion in 2015 versus a market growth ODVWÀYH\HDUVZLWKFDUULHUVDFURVVDOOWKHPDLQUHJLRQVZLWKWKH of 3.8%, increasing its worldwide market share to 3.9%. Volumes carried reached 964,131 tonnes, exception of Latin America, reporting an increase in demand. For while available tonne kilometres increased to 11.31 some, the recovery was enough to tip their balance sheets back into billion. The overall load factor stood at 66.76%. SURÀWZKLOHRWKHUVZHUHOHVVVXFFHVVIXO Cargolux’s operations to and from Zhengzhou were further developed, and the destination is 7KH VWURQJ JURZWK H[SHULHQFHG LQ WKH ÀQDO TXDUWHU KDV EURDGO\ now the group’s largest hub in Mainland China, continued this year, with carriers from all the main world regions, surpassing Shanghai. Flights between Luxem- bourg and Zhengzhou were complemented by with the exception of Latin America, reporting an encouraging start VHUYLFHVDFURVVWKH3DFLÀFWR&KLFDJRDQGEDFN to 2017. The airline carried over 105,000 tonnes of freight to and from Zhengzhou during 2016, an increase But within these wholesale trends, there are a wealth of stories of almost 75%. and other sub-trends, including carriers reporting increasingly so- The carrier took delivery of its 14th B747-8F last \HDURXWRIDÁHHWRI%IUHLJKWHUVQ phisticated demands from customers and exceptional growth rates from certain types of specialist products and sectors such as tem- SHUDWXUHFRQWUROOHGSKDUPDWUDQVSRUWDQGHFRPPHUFHEXVLQHVVî as the accounts of the various airlines in the report reveal… QQQ 26 CARGO AIRPORTS AIRLINE SERVICES 6XPPHU WORLD AIRLINE CARGO REPORT CATHAY PACIFIC CARGO: AN ENCOURAGING START TO 2017 2016 2015 % change Competition shall remain keen, while we should expect more Cargo and stable volumes from the major markets that we serve. 1,854,000 1,798,000 PDLOFDUULHG +3.1% tonnes tonnes CHANGES TO CAPACITY OR INFRASTRUCTURE IN 2016 The new freighter destinations in 2016, Portland and Brisbane, 7KHPDUNHWZDVYHU\ZHDNLQWKHÀUVWTXDUWHU7RQQDJHUHFRY were well received by customers. We grew as our passenger HUHGIURPWKHVHFRQGTXDUWHUEHFRPLQJVHDVRQDOO\VWURQJLQWKH network expanded. The entrance of new cargo-friendly A350 IRXUWKTXDUWHU'HPDQGRQ(XURSHDQURXWHVZDVZHDN'HPDQG DLUFUDIWSURYLGHXVWKHFDSDELOLW\WRHIÀFLHQWO\VHUYHVRPHWKLQQHU RQWUDQVSDFLÀFURXWHVJUHZVOLJKWO\LQWKHVHFRQGKDOIRIWKH\HDU ORQJKDXOGHVWLQDWLRQVLQ(XURSHDQG$XVWUDOLD Freighter services to Portland and Brisbane West Wellcamp were We have also entered joint business agreement with Lufthansa introduced. We managed freighter capacity in line with demand Cargo in May 2016. Our joint network will cover more than 140 and carried a higher proportion of cargo in the bellies of our pas- GLUHFWÁLJKWVSHUZHHNEHWZHHQ+RQJ.RQJDQG(XURSHDQ senger aircraft. destinations, which will provide customers with more direct con- QHFWLRQVJUHDWHUÁH[LELOLW\DQGWLPHVDYLQJVFRPELQHGZLWKVHUYLFH enhancements Cargo Load 2016 2015 % change )DFWRU 64.4% 64.2% +0.2%pt PLANNED CHANGES FOR 2017 Network expansion, eg Manchester and Toronto, and new destinations, Tel Aviv, Barcelona and Christchurch, served by our CARGO REVENUES passenger network. The group’s cargo revenue in 2016 was HK$20.06 billion, a decrease of 13.2% compared to the previous year. Strong PRODUCT AND SERVICE INITIATIVES competition, overcapacity, and the suspension of Hong Kong fuel We are at a stage of carrying out various surveys – both internal VXUFKDUJHVSXWVLJQLÀFDQWSUHVVXUHRQ\LHOG and external – to identify gaps or market needs of today, as well as the future trends of tomorrow. The results of the surveys will Cargo & 2016 2015 % change provide valuable insights to our current product portfolio, which Mail Yield HK$1.59 HK$1.90 -16.3% will enable us to determine the roadmap forward for Cathay 3DFLÀF&DUJR MARKET EXPECTATIONS FOR 2017 HK Airport is adopting a community approach in obtaining IATA 2017 has taken off to an encouraging start, with solid tonnage &(,93KDUPD&HUWLÀFDWLRQ&;*URXSRIDLUOLQHV &;.$ DUHWKH JURZWKLQWKHÀUVWTXDUWHU:HDUHFDXWLRXVO\RSWLPLVWLFWKDW only airlines partnering with HKAA and other ground operators in the positive momentum will continue into the rest of the year. this pilot project in HK. Q AVIATION Electronic Cargo Handling & Operations System 6XPPHU CARGO AIRPORTS AIRLINE SERVICES WORLD AIRLINE CARGO REPORT QATAR AIRWAYS: ANOTHER GROWTH YEAR FOR QR CARGO 8OULFK2JLHUPDQQFKLHIFDUJRRIÀFHU 2016 was another year of record growth 7KHKLJKÁLJKWIUHTXHQF\RIEHOO\ We successfully implemented our own for Qatar Airways Cargo. We achieved capacity is a key selling point for high- Freighter Load Control Centre (FLCC) in WKLVWKURXJKDFRPELQDWLRQRIÁHHWDQG yielding products such as express freight or 'RKDDQGLQWURGXFHGWKHDXWRPDWHG network expansion, innovation in our pharmaceuticals. The combination of ef- weight and balance system for freighter technology, creative interline agreements, ÀFLHQWEHOO\VSDFHSOXVIUHLJKWHUVWKDWFDQ aircraft. The Freighter Load Control Centre and by deploying capacity on expanding ÁH[LEO\DGMXVWWRWKHQHHGVRIWKHFDUJR uses a fully integrated next generation into untapped markets. EXVLQHVVLVWKHPRVWLGHDODQGFRVWHIÀFLHQW weight and balance system to load and combination. trim an entire freighter in minutes. :HKDYHDOVRLQFUHDVHGIUHTXHQFLHV Another notable achievement was the MARKETS AND PERFORMANCE to several routes due to high demand, as IXOOLPSOHPHQWDWLRQRI,$7$·V&DUJR;0/ Our estimated tonnage carried for 2016 well as upgraded freighters and passenger messaging standards. We became the was over 1.1 million tonnes, an increase ÁLJKWVWRNH\GHVWLQDWLRQVODVW\HDU8SFRP- ÀUVWFDUULHUWRIXOO\DGRSWLPSOHPHQWDQG of 21.5% over the year 2015. This result LQJIUHTXHQF\LQFUHDVHVDUHSODQQHGIRU integrate the next generation messag- was achieved through the addition of six Brussels, Basel and a few other destina- tions. On the passenger side too, there are LQJVWDQGDUG&DUJR;0/LQRXUFDUJR freighter destinations (New York, Halifax, management system – CROAMIS. The new aircraft upgrades to several destinations. Prague, Budapest, Ho Chi Minh City and messaging system supports easier transmis- 'DOODV LQZKLOHRQWKHSDVVHQJHU sion of more electronic documents and side, we launched 14 new belly-hold desti- PRODUCTS AND SERVICES In 2016, we reinforced our QR Live and streamlines air cargo processes, thereby nations. In addition, three new Boeing 777 reducing costs. IUHLJKWHUVMRLQHGWKHÁHHWLQ$YHUDJH 45([SUHVVSURGXFWSRUWIROLRV2XUIXOO\ cargo load factor was 74% in both 2016 DXWRPDWHG'RKDKXELVKLJKO\HIÀFLHQW PLANNED INVESTMENTS IN 2017 and 2015. and we have special processes and teams in place to handle the most time-sensitive Qatar Airways Cargo has invested continu- PERFORMANCE OF VERTICALS freight. Our specialist products QR Pharma ously in product development since the We are seeing increase in the tonnage of and QR Fresh are performing very well launch of QR Pharma in January 2014. We are nearing completion of our state-of-the- YDULRXVSURGXFWVÁRZQHDFK\HDU)LQDQFLDO and we are seeing an increase in tonnage year 2016-17 was no different: each year. art ‘Climate Control Centre’ at Hamad Qatar Airways Cargo pioneered International Airport. This transit facility for ([SUHVV – pharmaceuticals, situated on the airside, is 30% increase in 2016-17 over 2015-16 LQGXVWU\OHDGLQJ3KDUPD([SUHVVÁLJKWVLQ 7KH3KDUPD([SUHVVIUHLJKWHUVSURYLGH commissioned to be ready in the second 3HULVKDEOHV – TXLFNFXVWRPLVHGFRQQHFWLRQVEHWZHHQ TXDUWHURI7KH*'3FRPSOLDQW 17% increase in 2016-17 over 2015-16 the world’s major pharmaceutical hubs. VTPIDFLOLW\ZLOOHQKDQFHRXUDELOLW\WR /LYH$QLPDOV – We currently operate A330 freighters on SURFHVVPRUHYROXPHVRISURGXFWVTXLFNO\ 74% increase in 2016-17 over 2015-16 %DVHO²'RKD0XPEDL²$KPHGDEDG²'RKD within a climate-controlled environment. 3KDUPDFHXWLFDOV – DQG+\GHUDEDG²'RKDURXWHVGHGLFDWHG The Climate Control Centre has two 39% increase in pharma volumes to QR Pharma customers. In April 2017, we zones operating for 2-8°C or 15-25°C, in 2016-17 over 2015-16. DQQRXQFHGDGGLWLRQDO3KDUPD([SUHVV ZLWKFDSDFLW\WRKROGDWRWDORI8/'V ÁLJKWVIURP%DVHODQG%UXVVHOVDQGWKHVWDUW at a time. Segregated sections will hold QR Cargo’s charter business has also of our new freighter destinations Sao Paulo, pharmaceutical products in compliance been performing outstandingly well. Ton- Buenos Aires, Quito and Miami will help ZLWK*'3UHJXODWLRQV6L[WUXFNGRFNVZLWK nages via our charter freighters alone rose bridge key pharmaceutical trade lanes - LQÁDWHGFXUWDLQVZLOOEHLQVWDOOHG7KHVH E\LQÀQDQFLDO\HDUFRP within the Americas region. curtains will seal around the truck when pared to 2015-16. Our QR Pharma network currently covers docked, to ensure complete temperature MARKET EXPECTATIONS FOR 2017 71 destinations worldwide and is expand- integrity. This year started with strong demand for ing further. Pharmaceutical products are of great importance for us – we have been The facility will enable us to handle an both air and sea freight. We have seen additional 2 million tonnes throughput per ZRUNLQJKDUGWRJHWWUDGHODQHVFHUWLÀHG good demand across the world, despite by the big shippers. annum. We will also activate an industry- capacity crunches in some markets. leading temperature-controlled ramp Current purchasing indications signify a E-COMMERCE handling system, which will provide tem- positive outlook in the next few months. In Postal e-commerce has been booming in perature and location visibility for products general, 2017 should be a year of growth the recent years, and to cater to this grow- on the ramp. for air freight, although the total growth ing segment of the business, we are mak- result will rely on our sales performance ing huge investments in automation and SECOND CARGO TERMINAL during the peak season. other areas to speed up the hub transit Construction of our second cargo terminal times for mail shipments. An example of this at HIA is underway. The project underlines CAPACITY AND INFRASTRUCTURE is the implementation of electronic data our commitment to enhancing our capaci- CHANGES LQWHUFKDQJH &$5',75(6',7 ZLWKDOOSRVWDO W\FDSDELOLW\DQGHIÀFLHQF\:HDQWLFLSDWH This year, we have received our 12th customers. A dedicated mail and express DVLJQLÀFDQWXSVXUJHLQERWKEHOO\KROGDQG Boeing 777 freighter, and another B777 handling facility is being built airside in freighter capacity in the near future. With IUHLJKWHULVGXHWRMRLQRXUÁHHWEHIRUH our hub, reducing ground transportation RXULQYHVWPHQWVLQTXDOLÀHGVWDIIDÁH[LEOH October, which will bring our total freighter time. We will continue enhancement of IUHLJKWHUÁHHWDZHOOSODQQHGQHWZRUNDQG ÁHHWWRDLUFUDIWE\HQGRIWKHUHE\ products such as: QR Mail, addressing the management, the outlook for 2017 and SURYLGLQJDVLJQLÀFDQWLQFUHDVHLQRXUWRWDO ULVLQJHFRPPHUFHVHJPHQW 45([SUHVV beyond is positive. capacity. offering industry-leading rapid delivery for time-critical shipments. To match our growing capacity with the We launched freighter services to the TXDOLW\RIRXUSURGXFWVDQGVHUYLFHVZHZLOO South American continent, adding Sao INVESTMENTS IN CAPABILITIES continue to work with our key stakehold- Paulo, Quito and Buenos Aires to our 'LJLWL]DWLRQLVFKDQJLQJWKHIDFHRIWKH ers such as IATA and regulatory authorities network. We have also added freighter industry, and to provide information to our to ensure dedicated compliance and services to our existing passenger destina- FXVWRPHUVDWWKHLUÀQJHUWLSVZHLQWUR- adoption of advanced business processes, tion, such as Miami and Phnom Penh. The duced our QR Cargo mobile app. We also technology and operation procedures. expansion globally will continue as pas- launched our Online Services portal, which Our aim is to retain our position in the ‘Top VHQJHUDLUFUDIWZLOOVWDUWRSHUDWLQJWR'XEOLQ allows customers to manage their bookings ·RQ,$7$·V&DUJRL4TXDOLW\DQGH$:% Nice, and Skopje this year. and business online with us. YROXPHUDQNLQJVLQWKHFRPLQJTXDUWHUVQ 28 CARGO AIRPORTS AIRLINE SERVICES 6XPPHU WORLD AIRLINE CARGO REPORT Emirates SkyCargo: Logistics gets ever more sophisticated One of the major trends that we have seen +HQULN$PEDN(PLUDWHV·VHQLRUYLFHSUHVLGHQW in 2016, going in to 2017, is a continued focus on products and special services for worldwide cargo operations as logistics chains get ever more sophisti- with temperature-sensitive pharmaceutical get EU Good Distribution Practices (GDP) cated and we move away from the concept shipments. FHUWLÀFDWLRQIRURXUIDFLOLWLHVDQGRSHUD- of just transporting ‘general cargo’. This We have developed three levels of trans- tions for pharma transport at our hub in will also mean that customers have more- port solutions based on a requirement mix Dubai. Emirates SkyCargo now operates VSHFLÀF UHTXLUHPHQWV DQG H[SHFWDWLRQV that includes the temperature sensitivity of WKH ODUJHVW *'3FHUWLÀHG PXOWL DLUSRUW from us in terms of the services we offer, the product, the packing solution used by hub in the world, offering over 8,600sqm our capabilities, and our infrastructure. the pharmaceutical manufacturer, and the of dedicated space for pharmaceuticals The increasing sophistication of the supply origin/destination of the shipment: Stand- at Dubai. chain plays well to our focus on “delivered ard, Advanced, and Premium. as promised”, as the ultimate customers We launched a purpose-built facility at 2WKHUSURGXFWV have ever-increasing expectations to the Dubai International airport (DXB) dedi- Emirates SkyFresh was launched in April timeliness of supply. cated to the timely and secure transport 2017, offering a suite of solutions that of pharma products. This was in addition help maintain the freshness of perisha- 6N\3KDUPD to the dedicated facilities we also have bles and fresh consumables during trans- In keeping with the trend, Emirates Sky- at our freighter cargo hub at Dubai World port. In 2016, we introduced Emirates Cargo launched Emirates SkyPharma in Central (DWC) airport for pharmaceutical SkyWheels, a specialist solution to trans- 2016, SkyCargo’s solution to customers shipments. We also went a step further to port high-value automobiles. Q 6XPPHU CARGO AIRPORTS AIRLINE SERVICES 29 WORLD AIRLINE CARGO REPORT DELTA CARGO: STAGE SET FOR ARRIVAL OF A350S AA Cargo: Network, cool-chain, 5HYHQXHLQ PLOOLRQ and e-commerce growth &DUJRWRQPLOHVFDUULHG ELOOLRQ&70V American shipped 1.6 billion to be pleased with the performance CAPACITY AND INFRASTRUCTURE pounds (about 726,000 tonnes) of RIRXU$VLD3DFLÀFQHWZRUNDQGZLWK CHANGES cargo in 2016, a 12.5% increase the new service we’ve added to Hong 2016 was a transition year for our network across Kong (HKG), Haneda (HND), Sydney Asia as we prepare to set the stage for new LQWRQQDJHFDUULHGîZKLFKFDQEH aircraft investments. We continued with our previ- UHODWHGEDFNWRQHZÁHHWGHOLYHULHV (SYD) and Auckland (AKL). New ser- RXVO\DQQRXQFHGSODQWRUHWLUHRXUÁHHW which will be completed on schedule by the end facility updates, customer experi- vice for the summer season between of this year. Later this year, we begin to receive HQFHLPSURYHPHQWVDQGFRQVWDQWO\ Chicago (ORD) and Barcelona (BCN), WKHÀUVWRIRXU$ DLUFUDIWDFURVVWKHUHJLRQ which will provide additional capacity to our H[SDQGLQJQHWZRUN DFW and Rome (FCO), and DFW and markets where the aircraft will operate. The A350 is Amsterdam (AMS) expand our Euro- a cargo-friendly aircraft offering a total capacity RI/'HTXLYDOHQWSRVLWLRQVRU30&SDOOHWV 3URGXFWVDQGYHUWLFDOV pean network, with the launch of DFW American’s investments in its cold- to AMS already attracting consider- CAPACITY/INFRASTRUCTURE chain and perishable programmes able interest. And despite continued PLANS FOR 2017 'HOWDKDVEHHQOHDGLQJWKHFKDUJHWRH[SDQG SDLGRIIZLWKDVLJQLÀFDQWLQFUHDVHLQ economic challenges in the region, and upgrade our nation’s airports, with extensive WUDIÀFFRPSDUHG WR :H we expect improvement in a number improvement projects planned and underway at PDMRU'HOWDKXEVDW6HDWWOH/RV$QJHOHVDQG1HZ invested in new, larger coolers in a of our Latin American markets this CARGO AIRPORTS AIRLINE SERVICES 6XPPHU ® ECAC TSA MEET PERFORMANCE QUALIFIED EMIS STANDARD AUTOMATIC SCREENING FOR NON-METALLIC CARGO EMIS 130160 for palletized cargo FULLY AUTOMATIC DETECTION INSPECTION OF Detect detonators and metal components of explosive devices ¬ Flowers and perishable goods Low-intensity electromagnetic field: no ionizing radiation ¬ Paper products No dedicated operator needed ¬ Textiles and Clothing ¬ Plastic and wooden products Fast, real-time analysis Complete data logging and traceability www.ceia.net/security/emis For more information on the EMIS series, contact your CEIA representative at [email protected] WORLD AIRLINE CARGO REPORT AirBridgeCargo breaks annual record again in 2016 $LU%ULGJH&DUJR$LUOLQHVVDZ Last September, AirBridgeCar- further exceptionally strong go took delivery of its ninth new JURZWKLQ$OWKRXJKWKH Boeing 747-8 Freighter, taking its carrier has not yet announced WRWDOÁHHWWR)V7KLVODWHVW LWVÀJXUHVIRU&$$6 DLUFUDIWZDVWKHÀIWKQHZ) H[SHFWVWKHÀJXUHWREHDURXQG WRMRLQWKHÁHHWRI9ROJD'QHSU 620,000 tonnes, a rise of *URXSVLQFHLWFRQÀUPHGDQRUGHU DURXQGFRPSDUHGZLWKWKH with Boeing for 20 more 747-8Fs SUHYLRXV\HDU·VWRQQHV last July. ([SDQVLRQRIWKHDLUOLQH·VFDUJR New routes in 2017 include QHWZRUNODVW\HDULQFOXGHGQHZ ABC’s twelfth online destination routes such as Houston-Abu LQ$VLD3DFLÀFZLWKWZLFHZHHNO\ 'KDELDQGVHUYLFHVFRQQHFWLQJ Boeing 747 freighter services to $%&·V0RVFRZKXEZLWK&KRQJ- Taipei. ABC has doubled its Asia TLQJ3KQRP3HQK6HDWWOH 3DFLÀFURXWHQHWZRUNLQWKHODVW +HDWKURZDQG2VOR two years. Q ETIHAD CARGO: DOUBLE-DIGIT GROWTH IN Aeromexico Cargo: Customer preferences evolving PHARMA AND MAIL $HURPH[LFR&DUJRWUDQVSRUWHG dispatch and delivery times are also re- WRQQHVLQRYHUPRUHFRPSDUHG duced by 30%. 7RQQDJHVLQFUHDVHGPDUJLQDOO\ WRWRQQHV EXW\LHOGVGLSSHGLQ WR7KH0H[LFDQPDUNHWOHDGHU·V +RZHYHULQ4WKH\OHYHOOHGRII share of the international market is 19% 0DUNHWH[SHFWDWLRQVIRU DQGZHVWDUWHGWRVHHSRVLWLYHVLJQVLQ WKHPDUNHW (including freighter operations) and of Aeromexico Cargo expects a moderate We experienced good growth in the domestic is 56%. In the last three growth in freight volume, due to the condi- pharma and mail products, with both of these sectors recording double- years, its belly load factor has increased tions of the global economy for different GLJLWJURZWKLQ2XUHTXLQHWUDIÀF E\SHUFHQWDJHSRLQWV5HYHQXHKDV markets. As for customers, we see that remained steady – we carried 1,300 horses in 2016. We also shipped 250 JURZQLQWKHODVWWKUHH\HDUVî their preferences are evolving. Customers vehicles. DFFRPSOLVKHGWKURXJKDYHU\DJJUHVVLYH increasingly request a better service, vis- MARKET EXPECTATIONS FOR 2017 commercial strategy, best industry ibility in their shipments, and information 2017 has got off to a strong start and VHUYLFHDQGLWVQHZ%ÁHHWWKDWKDV in real time, among other things, which most of the indicators from industry analysts are positive. Q1 was strong for EHHQDEOHWRRIIHUDYHU\UHOLDEOHSURGXFW makes it essential to strengthen the variety (WLKDG&DUJRDV\LHOGVVWDELOLVHGDQG of products offered and seek to implement this upward trajectory is continuing into Q2. We are optimistic about the &DSDFLW\DQGLQIUDVWUXFWXUH improvements to processes and new tech- remainder of the year. Aeromexico Group in the last three years nologies, such as the specialisation of the CAPACITY OR INFRASTRUCTURE has grown 31% in terms of capacity (ATKs). FROG FKDLQ î SHUFHLYHG DV D WUHQG LQ WKH CHANGES $VDUHVXOWRIWKHVLJQLÀFDQWÁHHWJURZWK international market. (WLKDG&DUJRWRRNGHOLYHU\RID%RHLQJ 777F in February 2016. It entered com- as well as the amount of tonnes transport- Transport of perishables continues to mercial service on 1 March. We took ed, Aeromexico Cargo renewed its interna- be one of the most important in terms of delivery of an Airbus A330F in March this \HDU2XUIUHLJKWHUÁHHWQRZVWDQGVDW tional warehouse facilities at Mexico City volumes of merchandise transported, re- ²ÀYH%RHLQJ)VDQGÀYH$LUEXV International Airport, seeking to expand the ÁHFWLQJ LQWHUQDWLRQDO WUDGH LQ WKH UHJLRQ A330Fs – and this is complemented by RXUSDVVHQJHUÁHHWRIPRUHWKDQ capacity of the services it offers, modernise in transporting products such as lemons, aircraft. the cargo handling processes, in addition mushrooms, avocados, limes, mangos, (WLKDG&DUJRH[SDQGHGLWVIUHLJKWHU to becoming the best cargo terminal in the salmon and berries between markets such services to several new markets in 2016, including Colombus Rickenbacker, country, with state-of-the-art-facilities. With as South America, Mexico, Asia, the US (DVW0LGODQGV/RQGRQ6WDQVWHG the modernization, the total processing and Europe. Other important categories in Copenhagen, Brussels, Addis Ababa, Casablanca, Colombo, Muscat and and storage capacity was increased from international freight transport are courier, Zhengzhou. This brought the number of - freighter-only destinations to 15. Q WR WRQQHV UHSUHVHQWLQJ DQ LQ WH[WLOHV DXWRPRWLYH ÁRZHUV WHFKQRORJ\ FUHDVHRI5HFHSWLRQPDQRHXYHULQJ pharma, and luxury goods. Q 32 CARGO AIRPORTS AIRLINE SERVICES 6XPPHU When it comes to air freight, our expertise delivers. Air Canada Cargo has shipped freight expertly for 80 years, earning the trust of our partners worldwide. With a growing network serving over 450 cities, specialized shipping solutions, and sales representation in over 50 countries, we offer countless possibilities for shipping freight quickly around the globe. Experience today’s Air Canada Cargo. aircanadacargo.com WORLD AIRLINE CARGO REPORT United Cargo: Confident after a positive first quarter 0DUNHWUHYLHZ 2016 got off to a sluggish start in air cargo, but business conditions gradually improved as we moved through the year. On some international lanes, increased demand caught up to long-term capacity growth, and in the fourth quarter we experienced more of the demand boosts associated with the traditional “peak season” than we had in several years. Cargo tonnage carried in 2016 was 2.8 billion CTMs, a 7.3% increase over full year 8QLWHG &DUJR UHYHQXH LQ WR- WDOOHGPLOOLRQDGHFUHDVHIURP ·VUHYHQXHWRWDO &DSDFLW\DQGLQIUDVWUXFWXUH FKDQJHV 2016 was a positive year for new cities and QHZURXWHVRQ8QLWHG:HRSHUDWHGRXUÀUVW 0DUNHWH[SHFWDWLRQVIRU service in 2017, and we also plan to take ÁLJKW WR &XED LQ PRUH WKDQ \HDUV :H Our Q1 volume and revenue results give delivery of additional 787-9 Dreamliners QRZ RSHUDWH GDLO\ ÁLJKWV EHWZHHQ +DYDQD XV FRQÀGHQFH WKDW WKH ORQJWHUP WUHQG LV in 2017. and our Newark hub. Beginning Decem- positive and that United Cargo will capture a ber 16, 2016, United increased wide-body major portion of the growing market. 2WKHUSODQQHGFKDQJHVLQ service between Newark and San Juan, In February, United Cargo announced the Puerto Rico from once-weekly 767 service 3ODQQHGFDSDFLW\DQG addition of Barcelona, Spain (BCN) and Bor- to six times weekly 777 service. There are LQIUDVWUXFWXUHFKDQJHVLQ GHDX[0HULJQDF )UDQFH %2' DV FHUWLÀHG 49 FDA-approved pharmaceutical plants 8QLWHGZLOOUHWLUHRXUHQWLUHÁHHWRI%RH- handling locations in our TempControl net- in Puerto Rico, and this upgauge gives our ing 747-400s by the end of 2017 – earlier work for pharmaceuticals and other com- TempControl customers in SJU much more than we previously announced. We plan to modities requiring temperature-controlled regular wide-body connectivity. Á\WKHURXWHVFXUUHQWO\RSHUDWHGE\V shipping. Including Belfast, Ireland (BFS), – San Francisco-Europe and SFO-Asia – FHUWLÀHGODWHLQRXUJOREDO7HPS&RQ- 3URGXFWVDQGVHUYLFHV ZLWKPRUHIXHOHIÀFLHQWDQGFRVWHIIHFWLYH trol network now totals 67 locations. We Cargo has experienced exceptional growth wide-body aircraft. United has already have plans to certify additional locations in our TempControl product for pharmaceu- taken delivery on some of the 14 Boeing as TempControl handling stations in 2017, ticals and other temperature-sensitive com- 777-300ERs that we expect to place into including Chengdu. Q modities, and our PetSafe service for live animals. We are now focusing on developing our other value-added products in the same IAG CARGO: VOLUMES UP BUT REVENUES DOWN IN 2016 fashion, including EXP, our express service $ IDOOLQDYHUDJHDLUIUHLJKWUDWHVODVW\HDUFDXVHGIXOO\HDUUHYHQXHVWR for time-sensitive shipments; QuickPak GHFOLQHIRU,$*&DUJRGHVSLWHLQFUHDVHVLQRYHUDOOWUDIÀFDQGLQWKHSURSRUWLRQRI ¶SUHPLXP·SURGXFWYROXPHV and QuickPak International for shipments It said the competitive trading environment of 2015 had continued into 2016, and weighing less than 100 pounds; TrustUA, on a like-for-like basis, overall yield for the year was down 9.3% on 2015. Volumes were XSZKLOHFDSDFLW\JUHZE\SDUWLDOO\UHÁHFWLQJWKHLQWHJUDWLRQRIWKH$HU our service for the movement of human re- Lingus network. mains; and UASecure, a specialised service As a result, full-year 2016 commercial revenue was down 6.6%, compared with the IRU VKLSPHQWV FODVVLÀHG DV DUWLFOHV RI H[- SUHYLRXV\HDUWR½ELOOLRQ$GMXVWLQJWKHSULRU\HDU·VÀJXUHVWRUHÁHFWDGLUHFWO\ comparable operation, commercial revenue decreased 8% versus 2015. Q traordinary value and other valuable cargo. 34 CARGO AIRPORTS AIRLINE SERVICES 6XPPHU FROM LANDING TO TAKE-OFF: WE CARE Swissport International Ltd. Ground Handling, Cargo Services, Aircraft Maintenance, 30th IATA Ground Handling Conference Fuelling, Executive Aviation, Aviation Security May 21 - 24, 2017 % Bangkok, Thailand WWW.SWISSPORT.COM Come and visit us at Stand 23-24 A question HANDLING FOCUS: PHARMA HANDLING FOCUS: PHARMA of integrity Trust, transparency, and compliance are key factors pharma shippers consider when selecting air freight providers, reports Megan Ramsay HPSHUDWXUHFRQWUROOHGFDUJR notes Dirk de Rooij, commercial director Concerns in Africa including pharmaceuticals, FDUJR DW 6HDEXU\ 7KDW UHÁHFWV D UHJXOD ÁRZHUV DQG SHULVKDEOHV /RRNLQJVSHFLÀFDOO\DWWKH$IULFDQ tory drive to improve the supply chains of pharma trade, the top countries for ZDVDPRQJWKHWRSSHUIRUP imports – mainly from India, the US and medicines, underlined by programmes like T (XURSH²DUH6RXWK$IULFD1LJHULD ing air freight growth sectors the EU’s good distribution practice (GDP). Kenya, Ivory Coast, and Ethiopia. once again in 2016, with US and India the ,PSRUWVLQWR1LJHULDDQG6RXWK$IULFD WRSWZRWHPSHUDWXUHFRQWUROOHGDLUIUHLJKW are falling. But the drop in imports Modal shifts LQWR6RXWK$IULFDLVH[SODLQHGE\DQ H[SRUWQDWLRQVDQG&KLQDDQGWKH86WRS increase in production in the country ,QWHUPVRIPRGDOPDUNHWVKDUHVPLGYDOXH ping the list of import countries, according LWVHOI6HDEXU\·V'LUNGH5RRLMQRWHV pharma continues to shift to sea freight, to management consultancy Seabury. Outlining the key concerns QRWHV GH 5RRLM /RZYDOXH SKDUPD KDV of shippers in the transport of $QGWKHUHODWLYHO\KLJKPDUJLQDQGFRQ SKDUPDFHXWLFDOVE\DLULQ$IULFD5\DQ never been moved by air freight because VLVWHQWO\ JURZLQJ SKDUPD VHFWRU LQ SDU 9LHJDVKHDGRIORJLVWLFVIRU$3$&DW of the relatively high cost of this mode of pharmaceutical company Teva, told ticular, continues to attract strong interest WKLV\HDU·V$LU&DUJR$IULFDFRQIHUHQFH transport. Meanwhile, the proportion of and investment by the international air “We need to ensure integrity and KLJKYDOXH SKDUPD VKLSSHG YLD DLU IUHLJKW quality from factory to patient. The cargo sector – for good reason. highest risk is at transit points – at initial UHPDLQV VWDEOH $QG EUHDNLQJ LW GRZQ IXU The pharma industry as a whole is GLVSDWFKWUDQVKLSPHQWRIÁRDGRQORDG ther, cool pharma is increasingly carried by and destination airport – plus there are JURZLQJDWSHUDQQXPDFFRUGLQJWR the road legs to consider. Most airports DLUZKHUHDVQRQFRROSKDUPDLVVKLIWLQJWR the healthcare industry information and DUHDEODFNKROHEHFDXVHRIVHFXULW\ ocean shipping, de Rooij observes. UHVWULFWLRQVVRZHGRQ·WNQRZZKDW·V technology services company IMS Health. going on with respect to temperature 0HDQZKLOH LQWHUQDWLRQDO DLU IUHLJKW SKDU or conditions.” Selection criteria PD VKLSPHQWV URVH E\ EHWZHHQ DQG $QRWKHULPSRUWDQWLVVXHLVWKH So, how do shippers go about selecting the FRPSOH[LW\RI&XVWRPVSURFHGXUHV LQ DOWKRXJK VRPH DLUOLQHV DQG and documentation, which is forwarders and airlines that will move their air logistics specialists are seeing pharma SDUWLFXODUO\QRWDEOHLQ$IULFD products? There are several factors in the according to Jonathan Brand, head JURZWKUDWHVDVKLJKDVDVVKLSSHUV RI=$;PDUNHWVDWSKDUPDFHXWLFDO GHFLVLRQ-RQDWKDQ%UDQGKHDGRI=$;PDU increasingly switch to using specialist company Sandoz, who highlighted kets at pharmaceutical company Sandoz, the lack of standardisation in Customs pharma products offered by airlines rather across the continent. IHHOVWKDWWUDQVSDUHQF\LVNH\²FRPPXQL than shipping goods as general cargo, cation through the entire supply chain. For 36 CARGO AIRPORTS AIRLINE SERVICES 6XPPHU HANDLING FOCUS: PHARMA instance, it is no good having a shipment of FRXUVHZKHQLWFRPHVWRFKRRVLQJZKHWK SRLQWRIRULJLQ²RXWOLQHV3HWHUYDQ'RP drugs sitting at an airport with the recipient er to move goods by air or by sea. Uttam EXUJ EUDQFK PDQDJHU IRU %H/X[ DW IRU unaware that it has arrived. Stock could be Prakash, regional demand planner at warder Expeditors. Working with the right XQÀWIRUSXUSRVHE\WKHWLPHLWLVFROOHFWHG pharmaceutical manufacturer Ranbaxy, partners and applying the right mindset he observed. VD\VWKDWDVOLWWOHDVRIVKLSPHQWVDUH are crucial elements too, he says. For Ryan Viegas, head of logistics for moved by air, with the vast majority being Jimmy Nares, section chief of aviation APAC at pharmaceutical company Teva, sent by cheaper and slower ocean freight. marketing at Miami International Airport, there are three important criteria: First, the 7KHXUJHQF\RIWKHVKLSPHQWLWVVHQVLWLY says CEIV has proven to be of “tremendous element of trust. “You must do what you LW\WRWHPSHUDWXUHH[FXUVLRQVDQGLWVPDU YDOXHDW0,$0LDPLLVQRWDPDMRUSURGXF VD\DQGVD\ZKDW\RXGR6HFRQGFRPSOL ket price all come into play when making er of pharmaceuticals, but US$3.4 billion DQFH²FHUWLÀFDWLRQE\LQWHUQDWLRQDODJHQ this decision. worth was exported in 2016” because of cies. And third, we need to know which &HUWLÀFDWLRQVVXFKDV*'3RUWKH,$7$ WKHDLUSRUW·VFRQQHFWLYLW\DQGLWVSDUWLFLSD airline and airports a forwarder will use,” &(,9 VFKHPH DUH KXJHO\ EHQHÀFLDO DF tion in the CEIV scheme, which seeks to he says. “The pharmaceutical company FRUGLQJ WR IRUZDUGHUV 2I FRXUVH ÀQGLQJ harmonise standards on a global scale. bears the responsibility for its products, so a direct routeing is the ideal way to move we have to understand the routeing and WHPSHUDWXUHVHQVLWLYH JRRGV EXW WKLV Risk management so on,” he emphasises, pointing out that is not always possible, so forwarders do The selection of appropriate partners and there are some airports and airlines that their best to ensure they have the right compliance with recognised standards help DUHPRUH´SKDUPDIULHQGO\µWKDQRWKHUV procedures in place at transit points and to mitigate risk in the movement of vital There is also the question of cost, of visibility at destination – not just at the medical supplies. In the event of damage or The world’s largest independent ULD fleet Always ready where you are A new name in global ULD solutions built on years of unrivalled experience. unilode.com 6XPPHU CARGO AIRPORTS AIRLINE SERVICES HANDLING FOCUS: PHARMA loss, the airline, forwarder, handler, airport RURWKHUVXSSO\FKDLQSDUW\PXVWEHKHOGDF countable, believes Prakash. In some parts of the world, pharma FRPSDQLHVJRWRZKDWPD\VHHPH[WUDRU dinary lengths to ensure compliance DWHYHU\VWHSRIWKHZD\,Q,QGLDIRULQ stance, Viegas explains that for the road leg of a pharma shipment from Goa, there ZRXOGÀUVWRIDOOEHDUHTXLUHPHQWIRUDOO WKHDSSURSULDWHDLUSRUWOLFHQFHVDQGUHJ istrations pertinent to the vehicle and driver. The truck would then be escorted to ensure it followed the prescribed route, ZDVQHYHUOHIWXQDWWHQGHGDQGWKDWWHP SHUDWXUHFKHFNVZHUHFDUULHGRXWDQGUH ported back at the scheduled rest stops. On arrival at the airport, a checklist would KDYHWREHFRPSOHWHG8VLQJWKHVDPHGULY HUHVFRUW FRPELQDWLRQ WRR UHJXODUO\ ZRXOG be avoided in order to prevent corruption. Once or twice a year, the truck would be tailgated to ensure everything was done correctly. But this approach would not be appropriate everywhere, Viegas notes. ,QLWVÀUVW\HDUPHPEHUVKLSRIVSHFLDOLVW Technology But the use of technology also helps reduce DLUIUHLJKWDVVRFLDWLRQ3KDUPD$HURKDV WKHQHHGWRGHGLFDWHPDQSRZHUWRRYHUVHH DOUHDG\UHDFKHGLQFOXGLQJWKUHHPDMRU LQJVKLSPHQWV5HDOWLPHUHSRUWLQJRIGDWD such as location temperature, humidity or pharmaceutical shippers, writes Will Waters GURSV FDQ KHOS SUREOHPV WR EH LGHQWLÀHG quickly and resolved immediately, observes KH ÁHGJOLQJ DLU IUHLJKW VSH and values of the organisation, although Alban François, vice president global cargo cialist grouping Pharma. the intention is to focus on quality and at Brussels Airlines. “It’s not about blame; Aero has got off to a strong content, not to have as many members as ZH MXVW KDYH WR JHW LW À[HG DQG DYRLG WKH T VWDUW LQ LWV PLVVLRQ WR SUR possible, the organisation stressed. same thing happening in future,” François PRWH WKH UHOLDEOH HQGWR Nevertheless, by the time of its formal notes. François considers that standardised end transport of pharma shipments by air, ODXQFKODVW2FWREHU3KDUPD$HUR·VPHP tools used worldwide would be ideal, as they ZLWKWKHXOWLPDWHJRDORIFUHDWLQJFHUWLÀHG bership had already grown to seven with would enable data to be shared globally. lanes for pharma transport. WKH DGGLWLRQ RI IHOORZ &(,9 HDUO\DGRSWHU Remo Hanselmann, regional director Founding members Brussels Airport DLUSRUWV6LQJDSRUH&KDQJL 6,1 DQG6KDU Africa for World Courier, points out that it (BRU) and Miami International Airport jah International (SHJ), along with Brussels could be costly to develop and implement (MIA) last May announced the creation Airlines, Singapore Airlines Cargo, and a single tool that would report all of that of the organisation, which aims to create Brinks Life Sciences. And at this year’s data – but Nathan De Valck, chairman of D QHWZRUN RI OHDGLQJ DLUSRUW FDUJR FRP :RUOG&DUJR6\PSRVLXPLQ0DUFKWKHDV the Pharma.Aero initiative and Brussels munities that have embraced IATA’s CEIV sociation unveiled a further nine members $LUSRUW&RPSDQ\·VFDUJR SURGXFWGHYHO Pharma standard and that are looking to ² LQFOXGLQJ FUXFLDOO\ PDMRU SKDUPDFHXWL opment manager, is optimistic about the further build on the expertise gained from FDOVKLSSHUV3À]HU-RKQVRQDQG-RKQVRQ current capabilities available. “You can the CEIV programme. Pharma shippers Merck Sharp & Dohme. Other air cargo XVHZKDW\RX·YHDOUHDG\JRW²LW·VVXUSULV and other pharma logistics stakeholders stakeholders bringing the total number ing what you can do,” he says. QQQ can also join if they share the objectives of companies in Pharma.Aero to sixteen continues p40 38 CARGO AIRPORTS AIRLINE SERVICES 6XPPHU HANDLING FOCUS: PHARMA FINNAIR CARGO FOR SMOOTH TRANSPORT FLY YOUR CARGO THE SHORT NORTHERN ROUTE. Our modern A350 XWB fl ies even your most sensitive goods to their destination fast and safely. Read more fi nnaircargo.com 6XPPHU CARGO AIRPORTS AIRLINE SERVICES 39 HANDLING FOCUS: PHARMA DQG VKLSSHUV HQVXULQJ KLJK SKDUPD SURG XFWFRPSOLDQFHDQGYLVLELOLW\LQWKHDLUVXS ply chain.” $QG *LQR 9OHXJHOV -RKQVRQ -RKQ son’s senior manager for temperature FRQWURO (0($ QRWHG ´7KURXJK WKH FRO laborative projects embarked on by the RUJDQLVDWLRQ ZH DUH FRQÀGHQW WKDW RXU SDWLHQWVZLOOEHQHÀWIURPWKHRXWFRPHV,W is another big step to optimize the service towards our end customer.” Debby Mattys, MSD’s assistant director RI FRPSOLDQFH (0($ QRWHG ´7KH 3KDU ma.Aero initiative is the ideal platform to foster a targeted collaboration between continued from p38 the air transportation community and the PHPEHUV LQFOXGH '+/ 7HPSHUDWXUH 0DQ Pharma.Aero chairman Nathan De SKDUPDEXVLQHVV $V D VWUDWHJLF PHP agement Solutions, Expeditors, Chatrapati 9DOFNEHOLHYHVWKHODWHVWZDYHRIFRPSD ber of Phama.Aero, we aim for long term 6KLYDML 0XPEDL ,QWHUQDWLRQDO$LUSRUW(X nies joining, including the crucial addition WUDQVIRUPDWLRQDOSURMHFWVWKDWZLOOEHQHÀW UR$LUSRUW%DVHO$GYLFHDQGH&DUJRZDUH of the major medicine manufacturers, all stakeholders, including our patients.” suggests the organisation is on the right Fostering collaboration track. “Within a short span of six months, Commercial value The worldwide Pharma.Aero platform says it 3KDUPD$HURKDVDFKLHYHGRXUWRSSULRU MIA recently highlighted the commercial DLPVWRHQDEOHOLNHPLQGHGDLUSRUWFRPPX ity of expanding the membership base to value it believes it has gained from the nities, pharma shippers, and other pharma other stakeholders in the pharmaceutical airport’s investments in specialist pharma ORJLVWLFV VWDNHKROGHUV WR IRVWHU VWURQJ FRO VXSSO\FKDLQµKHQRWHV´7KHUHFHQWDGGL handling capabilities and its involvement in laboration among themselves. By sharing tion of the three global pharmaceuticals initiatives like CEIV and Pharma.Aero. The expertise, data, best practice, and jointly VKLSSHUVPDUNVDVLJQLÀFDQWPLOHVWRQHWR value of pharmaceutical freight shipped working on innovative regional initiatives WKHRUJDQLVDWLRQDVZHZLOOEHDEOHWRFRO YLD0,$VXUJHGLQWRELOOLRQ î ZLWK DQ HPSKDVLV RQ WKH ,$7$ &(,9 SUR laborate closely with the pharmaceutical driving up the total value of international JUDPPHîDLUSRUWVDQGWKHLURSHUDWRUVZLOO shippers on projects to achieve a reliable freight originating from and destined to DFKLHYH H[FHOOHQFH LQ UHOLDEOH HQGWRHQG HQGWRHQGDLUWUDQVSRUWIRUSKDUPDFHXWL 0,$LQE\WRELOOLRQLQ WUDQVSRUWRISKDUPDIRUWKHEHQHÀWRIVKLS cal cargo. Since 2010, when the total value of pharma pers and patients. ´7RJHWKHUZLWKWKHDLUFDUJRVWDNHKROG shipments was $1.8 billion, MIA’s pharma The organisation engages in three main HUV ZH ZLOO GHYHORS JOREDO SKDUPDFHXWL WUDGHKDVJURZQE\ areas of activity: Networking and events FDO WUDGH ODQHV LPSOHPHQW EHVW SUDF Glyn Hughes, global head of cargo at îEULQJLQJVWDNHKROGHUVWRJHWKHUDQGFUH tices, and share market knowledge and ,$7$ FRQJUDWXODWHG 3KDUPD$HUR·V FRO DWLQJDQ´LQWHQVHGLDORJXHµEHWZHHQDVH expertise.” He stresses that Pharma.Aero ODERUDWLYH LQLWLDWLYH IRU XQLWLQJ FRPSD lected group of individuals and companies; ZHOFRPHVRWKHU,$7$&(,9DLUSRUWFRPPX nies “around the central theme of linking 6WDQGDUGVHWWLQJ î EHQFKPDUNLQJ FUHD nities, shippers, airline carriers, logistics &(,9 FHUWLÀHG HQWLWLHV DQG WUDGH ODQHV tion of standard protocols, joint projects, companies, and other pharmaceutical to improve industry logistical networks and innovation; And the establishment of VWDNHKROGHUV ´ZLWK OLNHPLQGHG JRDOVµ WR to achieve supply chain excellence”. DQHWZRUNRIH[FHOOHQFHIRULWVPHPEHUVî become members. +XJKHV VDLG WKH MRLQW SURJUDPPH ´HQ sharing best practices, for audit support, hances the air cargo industry’s value and setting up a knowledge centre. Shipper endorsements SURSRVLWLRQDQGDGRSWLRQRIJOREDOVWDQG 7KHVHDUHLQWHQGHGWROHDGWRWKHXOWL ([SODLQLQJ 3À]HU·VLQYROYHPHQW LQ WKH LQL DUGV LQ WUDQVSRUWLQJ WLPH DQG WHPSHUD mate goals of the organisation “to realise, tiative, Eddy Weygaerts, a senior manager ture sensitive pharmaceuticals. Ensuring WRJHWKHU ZLWK WKH SKDUPD PDQXIDFWXU IRU ORJLVWLFV GHOLYHU\ DW 3À]HU FRPPHQWHG patient safety throughout the logistical HUV ODQH FHUWLÀFDWLRQ IRU SKDUPD WUDQV ´7KHSODWIRUPZLOOVXSSRUWORQJHUWHUPSUR journey is a collective responsibility, and portation by air, increasing quality and MHFWVDQGLQLWLDWLYHVZKLFKZRXOGEHQHÀWDOO this is a great demonstration of that transparency”. pharma transportation players, regulators ideal.” QQQ CARGO AIRPORTS AIRLINE SERVICES 6XPPHU CONNECT WITH EDMONTON’S CARGO HUB EDMONTON INTERNATIONAL AIRPORT CARGO MEMBERS OF: Use our expanding network to ship anything, anywhere in the world p Seven consecutive years of cargo volume growth p Worldwide air cargo service with nonstop freighter routes and connections p NON STOPPASSENGERÛIGHTSWITHCARGOCAPACITY p Road connections within 24 hours to and from anywhere in Western Canada &ORMOREINFORMATIONVISITÛYEIACOMcargo Life after CHEP Newly rebranded as Unilode, the world’s largest ULD management company has made a strong start to life as an independent he world’s largest provider of outsourced ULD MANAGEMENT XQLWORDGGHYLFH 8/' PDQDJHPHQWDQG CARGO OPERATIONS: CARGO OPERATIONS: UHSDLU VROXWLRQV 8QLORGH $YLDWLRQ 6ROX T WLRQVKDVPDGHDVWURQJVWDUWWROLIHDV an independent. Just a few weeks after its rebranding this year as 8QLORGHGXHWRWKHVDOHRIWKHIRUPHU&+(3$HURVSDFH Solutions last November to Swedish private equity IXQG(47,QIUDVWUXFWXUHWKHFRPSDQ\FHOHEUDWHGZLQ QLQJRQHRIWKHODUJHVW8/'PDQDJHPHQWFRQWUDFWVLQ the industry following a joint tender from Saudia and 6DXGLD&DUJR 7KH GHDO ZKLFK EHFDPH RSHUDWLRQDO RQ $SULO VHHV 6DXGLD DQG 6DXGLD &DUJR FKRRVLQJ 8QLORGH·V ¶+\EULG8/'0DQDJHPHQW·VROXWLRQLQZKLFK6DXGLD·V FRQWDLQHUVUHPDLQSDUWRIDGHGLFDWHGÁHHWDQGLWVSDO OHWVDUHVXSSOLHGIURP8QLORGH·VSRROLQFUHDVLQJ8QLO RGH·VRYHUDOOPDQDJHGÁHHWRI8/'VE\DURXQGWR XQLWV 8QLORGH SUHVLGHQW DQG &(2 /XGZLJ %HUWVFK VD\V VXFKDPDMRU8/'PDQDJHPHQWDJUHHPHQW´LVDJUHDW Ludwig Bertsch VLJQ RI RXU EXVLQHVV FRQWLQXLW\µ $QG LW DOVR GHPRQ strates that the company’s ambitions are undimmed E\LWVVDOHE\&+(3·V$XVWUDOLDQRZQHU%UDPEOHV Aviation Solutions in February there had been “many %XWWKHQ%HUWVFKDQGKLVFRPSDQ\DUHQRVWUDQJHUV activities and projects being carried out in relation to WR EHLQJ ERXJKW DQG VROG ,QGHHG %HUWVFK ZDV SDUW the acquisition”. Among these has been the creation RZQHURIWKHKROGLQJFRPSDQ\$YLDWLRQ6HUYLFHV+ROG RIWKHFRPSDQ\·VRZQ´EDFNRIÀFHIXQFWLRQµZLWKUHRU LQJV WKDW VROG ZKDW ZDV WKHQ ¶8QLWSRRO· WR %UDPEOHV JDQLVHGDQGHVWDEOLVKHG,7DQGÀQDQFHV\VWHPV in 2010. And the company had originally developed $ORQJVLGH WKH VXEVWDQWLDO ÀQDQFLDO LQYHVWPHQW OHG LWV 8/' SRROLQJ FRQFHSW XQGHU WKH EUDQG *OREHSRRO E\(47%HUWVFKQRWHVWKDW8QLORGHKDVDOVRUHFHLYHG ZLWKLQWKH6$LU*URXSIRUPHPEHUVRIWKHQRZGHIXQFW investment from another infrastructural backer. He is 4XDOLÁ\HU$OOLDQFHXQWLOWKHGHPLVHRI6ZLVVDLULQ FRQÀGHQWWKDWWKH\DUHERWK´ORQJWHUPµLQYHVWPHQWV ZKHQLWZDVUHQDPHG8QLWSRRODQGKDGDEULHISHULRG DQGWKH\ZLOOZRUNWRJHWKHURQDÀYHDQGWHQ\HDUYL as an independent. It was acquired the following year sion for the company. E\KDQGOHU6ZLVVSRUWDUHODWLRQVKLSODVWLQJIRXU\HDUV 0HDQZKLOH D PDMRU WHQHW RI WKH FXUUHQW SODQ LV WR XQWLO6ZLVVSRUWVROGWKHPDMRULW\RILWVVKDUHVLQ8QLW LQFUHDVHWKHÁHHWRI8/'VWKDW8QLORGHPDQDJHVDQG SRRO WR $YLDWLRQ 6HUYLFHV +ROGLQJV WKH KROGLQJ FRP %HUWVFKLVFRQÀGHQWWKDW8QLORGHFDQLQFUHDVHLWVUHY SDQ\ FUHDWHG E\ IRUPHU 6ZLVVSRUW H[HFXWLYH %HUWVFK HQXHE\LQWKHQH[WÀYH\HDUV7KH6DXGLDFRQWUDFW DQG$ÀQXPD*HUPDQSULYDWHHTXLW\KRXVH LQFUHDVHV WKH QXPEHU RI 8/'V WKDW 8QLORGH PDQDJHV %HUWVFK WROG CAAS WKDW VLQFH WKH FRPSDQ\·V UH WRZKLFKLVPRUHWKDQGRXEOHWKHOHYHODWWKH EUDQGLQJ IURP &+(3 $HURVSDFH 6ROXWLRQV WR 8QLORGH WLPH RI WKH FRPSDQ\·V DFTXLVLWLRQ E\ %UDPEOHV VHYHQ 42 CARGO AIRPORTS AIRLINE SERVICES 6XPPHU CARGO OPERATIONS: ULD MANAGEMENT \HDUVDJREXWWKLVLVVWLOORQO\DURXQGRI WKLUG JHQHUDWLRQ RI WKLV WHFKQRORJ\ DQG 'R\RXWKLQNWKHLQWURGXFWLRQRI,$7$·V the total global market of around 1 million. DIWHUDQXPEHURIÀHOGWULDOVZHZLOOJROLYH 8/'5HJXODWLRQV 8/'5 PDQXDO VLQFH $QGZLWKRIJOREDO8/'VVWLOOPDQDJHG ZLWKRQHRIRXUFXVWRPHUVXVLQJDÁHHWRI KDVGRQHDQ\WKLQJWRLPSURYHWKH LQKRXVHE\DLUOLQHVWKHUHLVVWLOODODUJHSDUW FRQWDLQHUV WR VHH KRZ LW ZRUNV LQ VWDQGDUGVRI8/'KDQGOLQJDFURVVWKH RIWKH8/'PDUNHWZDLWLQJWREHRXWVRXUFHG real life.” 8/'KDQGOLQJFKDLQ" a trend that looks set to continue. “The regulation addresses important +DYHWKHUHEHHQDQ\VLJQLÀFDQWQHZ areas such as handling and messaging CAAS DOVR WDONHG WR %HUWVFK DERXW WKH WHFKQRORJLHVPDWHULDOVSURFHVV which greatly impact the serviceability and FXUUHQWVWDWHRIWKH8/'PDUNHW LPSURYHPHQWVRUOHJLVODWLYHFKDQJHV YLVLELOLW\ RI WKH 8/'V LQ WKH VXSSO\ FKDLQ :KDWKDYHEHHQWKHPRVWLPSRUWDQW UHFHQWO\LQWKHFDUJR8/'PDUNHW" It has certainly been very helpful and is GHYHORSPHQWVLQWKHFDUJR8/'PDUNHW ´:HUHPDLQYHU\LQWHUHVWHGLQWKHGHYHO a crucial document for the user as it has LQWKHODVWPRQWKV" opment of collapsible containers as that EHHQVLPSOLÀHGDQGLVHDVLHUWRIROORZWKDQ “We continue to see emphasis from the will always be an opportunity to reduce previous documents. PDQXIDFWXUHUVRQUHGXFWLRQRIZHLJKWXV 8/'LPEDODQFHVDURXQGWKHZRUOGDQGZH ´,WKDVZLWKDOOWKHRWKHULQLWLDWLYHVLQ ing new composite materials. While ten FRQWLQXHWRZRUNZLWKWKH2(0VIRUDIHDVL FUHDVHGDZDUHQHVVEXWWKHUHDUHVWLOOWRR \HDUV DJR WKH DYHUDJH ZHLJKW RI DQ /' EOHXVHDEOHFHUWLÀHGGHVLJQ many examples of poor handling and lack FRQWDLQHUZDVDURXQGNJÀYH\HDUVDJR “There has also been increased focus RI FRUUHFW VWRUDJH IRU 8/' HTXLSPHQW DW DURXQGNJLQWKHODVWWZR\HDUVZHKDYH by the regulatory authorities on both the many airports globally. There are handlers seen further reductions to under 55 kg. age and condition of cargo restraint nets in ZLWK H[FHSWLRQDO HTXLSPHQW V\VWHPV “We are aware of efforts to bring the use. We see increased awareness from our SURFHVVHV DQG SHRSOH ZKLOH RWKHUV DUH ZHLJKWRIWKH/'FRQWDLQHUEHORZNJ customers of the importance of this vital in urgent need of improvement. Extensive $V DOZD\V WKRXJK WKHUH ZLOO EH D SD\RII equipment and we continue to work with awareness programmes and training for between weight reduction and potentially WKH2(0VWRHVWDEOLVKHDVLHUPHWKRGRORJ\ WKH ZKROH 8/' KDQGOLQJ FKDLQ FRQWLQXH VKRUWHUOLIHVSDQîDQGRULQFUHDVHGUHSDLU WR HQDEOH WKH XVHU WR LGHQWLI\ QHWV WKDW WR EH QHFHVVDU\ DV WKH PDQXDO LQ LWVHOI FRVWV7KHUHDUHDOVRGHYHORSPHQWVWRUH IRU H[DPSOH DUH DSSURDFKLQJ WKHLU H[SLU\ ZLOO QRW LPSURYH WKH VWDQGDUGV RI 8/' duce the weight and increase the rigidity GDWHDVSHU8/'UHJXODWLRQV handling.” RISDOOHWVZKLFKZRXOGWDNHIXUWKHUZHLJKW ´:LWKRXW GRXEW ,$7$ 8/' &$5( DQG off the aircraft. other organisations have contributed to 'R\RXZHOFRPH,$7$·VPRUHUHFHQW “There are many developments in the WKH LQFUHDVHG IRFXV RQ WKH 8/' DQG LWV GDPDJHSUHYHQWLRQFDPSDLJQDQGGR DUHD RI VDIHW\ DQG WHFKQRORJ\ ZLWK JURZ XVH KLJKOLJKWLQJ PDQ\ RI WKH KDQGOLQJ \RXWKLQNLWLVKDYLQJRUZLOOKDYHDQ\ LQJLQWHUHVWLQÀUHUHVLVWDQWFRQWDLQHUVDQG practices that need improvement. Training VLJQLÀFDQWHIIHFW" VPDUW 8/'V 2YHU WKH ODVW WZR \HDUV ZH programmes are being offered and good “Any damage prevention campaign is to KDYH LPSURYHG RXU DZDUGZLQQLQJ ¶&DQ ZRUNLQJ UHODWLRQVKLSV KDYH EHHQ HVWDE EH DSSODXGHG DQG HQFRXUDJHG 7KH 8/' 7UDFN· GHYLFH ZKLFK LV D *356 WUDFNLQJ OLVKHGZLWKPDQ\XVHUJURXSVVXFKDVWKH handling culture throughout the world does solution for containers. We now have the FIATA Air Freight Institute.” QHHGWRLPSURYHDQGWKLVZLOORQO\KDSSHQ 6XPPHU CARGO AIRPORTS AIRLINE SERVICES 43 CARGO OPERATIONS: ULD MANAGEMENT ´2YHUWKHODVWWZR \HDUVZHKDYH improved our award- A flexible solution ZLQQLQJ¶&DQ7UDFN· New-generation collapsible containers using device” lightweight materials such as Graphene could help solve the growing challenge of container Ludwig Bertsch repositioning, writes Tom Willis with continued focus such as the recent KH LGHD RI FROODSVLEOH FRQ not widely used or accessible. campaign. WDLQHUV ÀUVW URVH WR SURPL 9DQ &DOFDU VD\V $&/ $LUVKRS SODQV WR ´8QLORGHVWDIIDWDLUSRUWVPDNHORWVRIHI QHQFH WHQ WR ÀIWHHQ \HDUV FUHDWH D IDPLO\ RI FROODSVLEOH FRQWDLQHUV forts in promoting safe handling practices T DJR ZKHQ IXHO SULFHV LQ VWDUWLQJZLWKPDLQGHFNFRQWDLQHUV'HYHO among the ground handler community and creased and shippers and RSPHQWKDVVWDUWHGDSURWRW\SHVKRXOGEH RXUFRQWDLQHUVFDUU\D¶+DQGOHZLWK&DUH· airlines explored various possible solutions FUHDWHGVRRQDQGWKHFRPSDQ\KRSHVWR label to call the handlers’ attention that a WRULVLQJFRVWVEXWZKHQIXHOSULFHVVXEVH ÀQDOLVH D WLPHOLQH RI GHYHORSPHQW EHIRUH 8/'LVDQDLUFUDIWSDUWDQGLQFRUUHFWORDG TXHQWO\GURSSHGWKHLGHDDOVRGURSSHGRXW the end of this year. ing and handling could put the safety of of fashion. SDVVHQJHUVFUHZDQGDLUFUDIWDWULVNµ +RZHYHU LW FRXOG EH PDNLQJ D FRPH Graphene revolution EDFN DFFRUGLQJ WR VRPH LQ WKH DLU FDUJR 0HDQZKLOH $9 'RPH LV DOVR ZRUNLQJ WR 'R\RXSODQWRPDNHDQ\VLJQLÀFDQW LQGXVWU\7KHH[SRQHQWLDOJURZWKRIHFRP GHYHORS D ´UHYROXWLRQDU\µ QHZJHQHUDWLRQ FKDQJHVWR\RXUSURGXFWVDQGVHUYLFHV merce and the logistical problems that this collapsible container using the material LQ" EULQJVWRDLUIUHLJKWRSHUDWLRQVîVKLSPHQWV *UDSKHQH7KHFRPSDQ\VD\VLWVFROODSVLEOH ´)URP WKH 8/' DQJOH ZH FRQWLQXH RXU that cannot easily be palletized and need *UDSKHQH8/'SURGXFWVZLOOEHOLJKWZHLJKW efforts to ensure that our containers and WREHVKLSSHGLQFRQWDLQHUVFRPELQHGZLWK VWURQJ DQG ÁH[LEOH DOVR FRPLQJ ZLWK DQ pallets are economical and repair hours strong directional imbalances and sharp ´HOHFWURQLFGDWDUHFRUGHUµ$9'RPHLVVWLOO DUHUHGXFHGVRWKDWWKHWRWDOFRVWRIRZQ VHDVRQDOSHDNV²ZLOOUHTXLUHDORQJWHUP DZDLWLQJ WKH FHUWLÀFDWLRQUHTXLUHG IRU SUR ership remains reasonable and we have solution for the container imbalances this duction as the patents on the containers good availability of equipment throughout creates and the need to reposition them are still pending. our network. PRUH HIÀFLHQWO\ DQG FRVWHIIHFWLYHO\ WKDQ /XGZLJ %HUWVFK &(2 RI 8QLORGH VD\V “We will continue to focus on our core LV FXUUHQWO\ SRVVLEOH DUJXHV 3LHWHU YDQ KLV FRPSDQ\ KDV D VPDOO TXDQWLW\ RI FRO VHUYLFHV RI 8/' PDQDJHPHQW DQG 8/' &DOFDU GLUHFWRU DQG JHQHUDO PDQDJHU IRU lapsible containers among its managed and galley cart maintenance and repair $VLD3DFLÀFDW$&/$LUVKRS¶7KHPHG·HYHQW SRRORIFRQWDLQHUVEXWWKH\KDYHUHPDLQHG VROXWLRQV 2XU FXVWRPHU EDVH LV JURZLQJ GD\V VXFK 9DOHQWLQH·V 'D\ 6LQJOHV· 'D\ unused for the best part of two decades DVZHQRZSURYLGH8/'PDQDJHPHQWWR DQG %ODFN )ULGD\ IXUWKHU DGG WR WKH FRQ because they are too heavy and therefore airlines and repair services to around 50 tainer repositioning challenges. WRRH[SHQVLYHWRÁ\DURXQGWKHZRUOG%XW customers. We have recently opened an 7KHVROXWLRQKHEHOLHYHVLVFRQWDLQHUV KHDJUHHVWKDWWKHJURZWKRIHFRPPHUFH )$$DSSURYHGUHSDLUVWDWLRQLQ6DQWLDJRGH WKDW FDQ EH FROODSVHG ÁDW XQWLO WKH\ DUH has added to container imbalances and &KLOHDQGZLOODGGIXUWKHUVHUYLFHFHQWUHVLQ only around 10cm high and stacked into KHQFHWKHFKDOOHQJHRIPDQDJLQJÁHHWVRI South America and the Middle East. XQLWVRIVL[WKDWÀWLQWRWKHORZHUGHFNRID 8/'V %HUWVFK ZDUPO\ ZHOFRPHV WKH SR ´LVDQLPSRUWDQW\HDULQRXUFRP ZLGHERG\DLUFUDIW tential development of a viable collapsible pany’s history and we will make sure that $OWKRXJKWKHUHDUHVRPHFROODSVLEOHFRQ FRQWDLQHUEXWQRWHVWKDWLWZRXOGQHHGWR the positive changes we see following the WDLQHUVDOUHDG\FXUUHQWO\XVHGLQWKHPDU SDVV FHUWLÀFDWLRQ DQG EH VRPHWKLQJ WKDW acquisition by EQT will be passed on to our NHWWKHVHWHQGWREHIRUVSHFLÀFVROXWLRQV HPSOR\HHV RQ WKH UDPS ZRXOG EH FRP FXVWRPHUVDQGSHRSOHîDQGRXUSRVLWLRQ VXFKDVKRUVHVWDOOV$&/$LUVKRSKDVDOVR fortable handling – and robust enough to DV WKH ZRUOG·V OHDGLQJ SURYLGHU IRU RXW GHYHORSHG FROODSVLEOH SURGXFWV WR WUDQV VXUYLYHWKHURXJKWUHDWPHQW8/'VDUHFXU VRXUFHG8/'DQGJDOOH\FDUWVROXWLRQVZLOO SRUWDXWRPRELOHIUDPHVEXWWKHVHDUHDOVR rently subjected to. QQQ be consolidated.” QQQ 44 CARGO AIRPORTS AIRLINE SERVICES 6XPPHU AeroNexus: The Alaska Advantage Global Cargo Hub to Key Trade Lanes ( ! !$& ( ! ! ! ( ! "! ! ( "'% ! "! ( ! # ( !" ! ! Delivering Efficiency Through Connectivity www.AnchorageAirport.com Unlocking Africa’s air freight potential REGIONAL REPORT: AFRICA The continent he African continent pre- – including foreign direct investment from sents a mix of great potential China, in particular. presents a mix of and major obstacles when it But there is also a prosperity gap: 18 great promise and T comes to its economic de- of the world’s lowest-GDP countries are velopment and the growth in Africa, and the continent as a whole is major obstacles of its air freight industry, according to Glyn SHUFHLYHGDVDSODFHZKHUHLWLVGLIÀFXOWWR Hughes, global head of cargo at the Inter- ‘do business’. On top of that, some African when it comes national Air Transport Association (IATA). economies are suffering from the slump in to its economic Speaking at the 4th Air Cargo Africa Con- oil and gas prices, and many receive poor ference and Exhibition in Johannesburg World Bank LPI (logistics performance indi- development and this year, Hughes highlighted that today’s cator) ratings. Only three African countries Africa has a young, growing population, rank in the top 50 on that index, South the growth of its air that provides a large labour force and con- Africa (at number 20) being the highest- freight industry sumer market. It is “mobile-connected” rated, with Kenya and Egypt coming in – although this varies by country, with Ni- lower; however, 13 African nations fall in geria leading – and contains a number of the bottom 20. expanding economies. The services sector Against this backdrop, what are the LVJURZLQJDQG+XJKHVDOVRQRWHGDVLJQLÀ major challenges and how could they be cant degree of investment in infrastructure overcome so as to ensure African countries 46 CARGO AIRPORTS AIRLINE SERVICES 6XPPHU REGIONAL REPORT: AFRICA IXOÀO WKHLU SRWHQWLDO LQ WHUPV RI FLYLO DYLD revenue from land rental, rather than hav- tion, and air cargo in particular? ing an “integrated approach” to air freight. Airports, he says, need to be a willing part- Infrastructure ner in the supply chain for investment to $ VLJQLÀFDQWLVVXH LV WKH VKHHU FRVW RI Á\ happen. LQJ WR $IULFDQ GHVWLQDWLRQV -DQ GH 9HJW Another aspect is the inadequacy of FKLHI RSHUDWLQJ RIÀFHU RI .HQ\D $LUZD\V ground transport. Even where airport in- describes Africa as having “one of the high- IUDVWUXFWXUH LV VXIÀFLHQW URDGV FDQ EH LQ est cost structures in the world”, with fac- a poor state of repair in some areas, for tors such as the high cost of getting fuel to instance, with the result that the entire DQDLUSRUWH[SHQVLYHODQGLQJDQGRYHUÁLJKW multimodal transport network suffers de- permits, and low passenger numbers in the lays and cargo can be damaged in transit. UHJLRQKDYLQJDQHJDWLYHLQÁXHQFHRQGHYHO opment. A lack of government investment in Safety and security infrastructure compounds the problem. An increase in safety through the implemen- Barry Nassberg, group chief operating tation of initiatives like IOSA (the IATA Op- RIÀFHUDWKDQGOHU:RUOGZLGH)OLJKW6HUYLF erational Safety Audit) is driven by carriers, es, believes that many airport operators in since ultimately their customers refuse to Africa continue to treat cargo as an ancil- Á\ZLWKXQVDIHDLUOLQHVGH9HJWSRLQWVRXW lary activity or an opportunity to increase Governments follow this drive, but they can ´:KLOHWKHUHDUH UHJXODWLRQVDORWLVLQ RXUKDQGV²WKURXJK cooperation and FROODERUDWLRQEHWZHHQ JURXQGKDQGOHUV DLUOLQHVDQGIRUZDUGHUV ²DQGZHFRXOGGR EHWWHULQ$IULFDµ Rainer Mueller 6XPPHU CARGO AIRPORTS AIRLINE SERVICES REGIONAL REPORT: AFRICA on safety and security – possibly because of the environments people live in here”. Nassberg would like to see more lo- cal talent brought up through organisa- tions operating in the region. “It needs to be more about attracting people into the industry with a longer term view on what we invest in people – giving them a career path,” he says. Governments When it comes to working with the authori- ties, it is generally agreed that industry must take an active role in order to keep develop- ment in line with best practice, as well as encourage investment in those areas that most require it. Mueller argues that while there are regulations, “a lot is in our hands – through cooperation and collaboration between ground handlers, airlines and for- warders – and we could do better in Africa.” be slow to get things moving. staff need to see that protecting all aircraft .HQ\DZRUNVYHU\ZHOO²IRULQVWDQFHÁRZ In terms of security, IATA’s ACC3 (Air Car- is part of their job function. ers for perishables moving to Europe – and go or Mail Carrier operating into the Union other markets are opening up, but he would from a Third Country Airport) programme to Workforce like to see this elsewhere in the continent. meet the requirements of this latest EU avi- %XW$IULFDEHQHÀWVIURPDORZHUVWDIIWXUQRYHU 'H9HJWDGGVWKDWWKHUHDUHQRUHDOO\JRRG ation security rules is seeing “positive de- than that experienced elsewhere in the world, tax-free zones in Africa like those that exist in velopment” in many countries, says Rainer Nassberg observes, partly due to the eco- Europe or China, for instance. This would be Mueller, vice president for commercial at nomic realities in these countries. As a result, where Amazon would set up its hub for dis- Saudia Cargo. “Governments, airlines and there is “more stability in workforce, more will- tribution, but it depends on the political will. other stakeholders are all working on it,” ingness to use training, and more emphasis Echoing that point, The International Air 0XHOOHU QRWHV VD\LQJ KH LV FRQÀGHQW RI improvements in safety and security taking E-commerce challenges place in Africa. As online purchasing continues to rise dramatically, is Africa ready to cope with the However, Graham Perkins, vice president e-commerce explosion? for sales and marketing EMEA at carrier At- Graham Perkins, vice president for sales and marketing EMEA at carrier Atlas Air, be- lieves that the people are ready, but much remains to be done before e-commerce las Air, says there are still issues at smaller can really take off in Africa. For instance, Customs rules and regulations are outdated outlying airports, where enhanced security ²WKHUHTXLUHPHQWIRUDOOLQERXQGVKLSPHQWVWREHUHYLHZHGLVLQHIÀFLHQWDQGWKHUHLV no provision for transit cargo in Customs regulations so the creation of e-commerce may be required to protect staff and crew. hubs is hindered. Plus, credit card penetration is low: the tendency is more for cash on He highlights the importance of standards GHOLYHU\EXWWKLVUDLVHVFRQFHUQVIRUWKHVDIHW\RIÀQDOPLOHGHOLYHU\VWDII5RDGIHHGHU services also need to be brought up to scratch in order to offer the speed required for DQG FHUWLÀFDWLRQ IRU JURXQG KDQGOHUV DV e-commerce to work. well as airports and airlines. Perkins says: “E-commerce is growing by 30% per annum as opposed to general On the subject of aircraft damage, Per- cargo which is growing by 1-2% per annum. The demand is there, but the infrastructure isn’t – it needs to catch up.” kins notes that there seems to be a dif- %DUU\1DVVEHUJJURXSFKLHIRSHUDWLQJRIÀFHUDW:RUOGZLGH)OLJKW6HUYLFHVEHOLHYHV ferent mindset applied to the handling agrees that Africa does not – yet – have the ability to absorb high levels of e-com- merce. He wonders whether disused postal or other facilities could be repurposed for of freighters as opposed to passenger HFRPPHUFHDVLVWKHFDVHZLWKDQROGSDVVHQJHUWHUPLQDOWKDW:)6LVFRQYHUWLQJIRU aircraft. Plus, having an aircraft on the small package processing in Asia. ground in Africa is “more worrisome than It comes down to having the right facilities to handle growing demand, and to DGMXVWRSHUDWLRQVLQOLQHZLWKÁXFWXDWLRQVLQGHPDQGWKURXJKRXWWKHFRXUVHRIWKH elsewhere” because there is a lack of ad- year. Investment in automation is one aspect that could help, and this is something equate support to repair damage. Training WKDW6ZLVVSRUWIRULQVWDQFHLVSXUVXLQJFRQÀUPVWKHKDQGOHU·VVHQLRUYLFHSUHVLGHQWIRU FDUJRJOREDODFFRXQWVDQGFRPPHUFLDO5XGROI6WHLQHU Q and awareness are key, he says; ground 48 CARGO AIRPORTS AIRLINE SERVICES 6XPPHU GROUND SUPPORT EQUIPMENT RELIABLE EQUIPMENT DELIVERED ON TIME YOUR SUPPLIER FOR USED/ REFURBISHED GSE & RENTAL SOLUTIONS 2017 25TH - 27TH APRIL SHERATON MILAN MALPENSA AIRPORT HOTEL PLATINUM SPONSOR Stand No. 45 & 47 CONTACT US DANNY VRANCKX BART KROONENBERG CEO COO Tel: +32471942780 Tel: +31653765332 danny.vranckx@aviaco-gse.com [email protected] www.aviaco-gse.com REGIONAL REPORT: AFRICA JOHANNESBURG SET FOR AIR FREIGHT UPGRADE &DUJR$VVRFLDWLRQ 7,$&$ ·V9ODGLPLU=XE kov comments that it is vital to have facili- Airports Company South Africa claims DPLGÀHOGFDUJRWHUPLQDODUHEHLQJ it is ramping up its efforts to support aligned with a master development ties that are favourable to development, JURZWKRIDLUFDUJRWUDIÀFZLWKLQLWLDWLYHV plan for the entire airport precinct. plus trust between industry and govern- that will ease congestion and expand Pityi said the master development ment. “Liberalisation will increase trade warehouse space in the short term and plan had “a horizon of decades” and infrastructure developments that will and services,” he notes. “Africa is a sensi- develop capacity in the longer term. careful consideration had to be given to integrating plans for infrastructure tive place; letting established airlines op- Bongiwe Pityi, general manager of that will have a potential life span O.R. Tambo International Airport (which of 30 to 40 years. This includes major erate here now would be premature, but was named African Airport of the Year commercial and retail expansion in the if you don’t open up, they won’t open up.” at the Air Cargo Africa conference and airport’s western precinct, which is part exhibition for the third consecutive year of the Gauteng City Region’s ‘aero- Yet the notion of liberalisation or ‘open – see photo), said that while air cargo tropolis’ plan. tonnages are currently under pressure, skies’ across Africa is tricky, as the con- development of new infrastructure in In addition to the focus on infrastruc- tinent displays such huge disparities on collaboration with the sector is needed WXUH$LUSRUWV&RPSDQ\6RXWK$IULFDKDV to ensure that maximum advantage established a business development many fronts, whether economic, social can be taken of the next upswing. function to actively pursue new cargo or political. Harmonisation of standards URXWHVDQGDGGLWLRQDOÁLJKWV7KHEXVLQHVV Total air cargo processed through DQG UHJXODWLRQV ZRXOG EH D ELJ ÀUVW VWHS O.R. Tambo International Airport in 2016 development function does market of 350,500 tonnes was about 10% down research and analysis, marketing, LQIDFLOLWDWLQJWKHÁRZRIJRRGV$GGHGWR SURPRWHVWUDIÀFGHYHORSPHQWDQGVHHNV on the preceding year as global trade that, improvements to infrastructure – a came under pressure. In spite of this opportunities to develop and manage dip, Pityi said the cargo facilities at O. R. airports. better hub system with good road feeder “A particular focus in services – and maybe even combining with terms of route development is what we know as the the integrators and e-commerce providers ‘southern corridor’, which to expand the range of services available, LQFOXGHV6RXWK(DVW$VLDDQG 6RXWK$PHULFDµ3LW\LVDLG are also avenues to be explored, execu- “The business development WLYHVVD\8OWLPDWHO\DPRUHHIÀFLHQWDQG function is the practical mechanism for helping us better-regulated African air transport sys- achieve our vision to at- tem would allow customers to plan their WUDFWPRUHDLUFDUJRWUDIÀF YLD6RXWK$IULFDDQGWR processes for on-time delivery as well as maintain our status as the faster delivery; and it could also reduce logistics and distribution hub for sub-equatorial Africa.” FDUJRFULPHQRWHV=XENRY Pityi was hopeful that But it is unlikely that this market will be the air cargo sector, facing able to fully develop in the global arena un- reduced volumes and tight margins, would feel some til its own various economies have grown relief from a 35% reduc- stronger, its aviation sector becomes more Tambo International Airport are already tion in airport tariffs from 1 April 2017. operating at close to capacity. ´:KLOHODQGLQJIHHVSDUNLQJIHHVDQG HVWDEOLVKHG DQG FRVWV IDOO VD\V GH 9HJW “The balancing act we need to other charges make up a relatively “We need to get open skies within Africa achieve is to have the infrastructure in small component of total costs, margins place for when economic conditions DUHVXFKWKDWDVLJQLÀFDQWUHGXFWLRQLQ ÀUVWZLWKRXWEHLQJSURWHFWLRQLVWWKHQORRN turn, but not so far in advance that it charges can make a real difference at beyond,” he says. creates an unreasonable cost burden,” the margins,” she commented. Some wonder whether it might be pos- said Pityi. “No one likes a white elephant, 6KHDOVRVDLGWKHUHZDVVWLOODJUHDW but it would be most unfortunate if deal of room in the airport space to sible for all African nation states to work the infrastructure is not there when it’s improve processes through digitisa- needed most.” together, along the lines of the Indian tion. “Airports Company is investing in Pityi highlighted air freight growth op- acquiring the skills that are needed for model. But this is not yet likely, given the portunities in pharmaceuticals, perisha- a digitised business as part of the strate- aforementioned prosperity gap and other bles and automotive parts and said the gic shift of our new operating model,” disparities that exist today, some cargo company “needs to hear more from air she noted. cargo stakeholders about the particular executives believe. Mueller feels that “we kind of infrastructure that will support “There are around 35 separate their ambitions”. digitisation projects in the pipeline for the should just start, or we’ll never get it going” next one to three years that will stream- In the short term, Airports Company line the experience for airport users. In ZKLOHGH9HJWFDXWLRQVDJDLQVWPDNLQJWKH 6RXWK$IULFDVDLGLWZRXOGUHFRQÀJXUH the cargo sector, one of the important same mistakes as China did – “becoming a and upgrade the access and frontage projects will be cargo analytics, which roads around the cargo buildings at O. will enhance our ability to understand manufacturer for the rest of the world and R. Tambo International Airport to ease congestion and reduce in-transit times. our customers in real time and to forget its own home market”. In the medium to long term, plans for respond quickly to changing needs and But China hasn’t done too badly, others new requirements.” Q note. QQQ CARGO AIRPORTS AIRLINE SERVICES 6XPPHU Tremblay-en-France, France – Companies Register N° 552 016 628 RCS Bobigny and APE code 52.23Z. Aéroports de Paris, French Limited Company with a capital of 296 881 806 euros - Registered office : 1 rue de France 93290 YOUR CARGO WILL HAVE HAPPY MEMORIES OF ITS JOURNEY GROUPE ADP, SO MUCH MORE THAN CARGO When you choose Groupe ADP you can benefit from a complete cargo ecosystem combined with a tailor-made service and our expertise. Almost 600,000 sq.m of dedicated facilities, with a further 100,000 sq.m to be added over the next three years, as part of our Connect 2020 strategic plan. And to guarantee a quality of service adapted to the specific requirements of the pharmaceutical industry, Groupe ADP will also be introducing CEIV Pharma certification for Paris-Charles de Gaulle Airport in liaison with IATA. Positive steps to efficiently and sustainably support the growth of our Cargo customers. Meet us at Air Cargo Europe 2017. [email protected] groupeadp.fr GSA FOCUS GSA FOCUS Beyond general sales GSAs look set to increase their already substantial share of air cargo’s $50bn annual revenue base and further broaden their services, writes Tom Willis ir cargo, a sector worth cargo representative for the airline in a around $50 billion annual- particular market, country, or region. The ly according to IATA, relies move towards GSAs offering additional A like most industries on the services such as handling supervision outsourcing of some op- led some years ago to the expansion of HUDWLRQVLQRUGHUWRJHQHUDWHHIÀFLHQFLHV the term to GSSA or general sales and – and this looks set to increase further. services agent, although some of the big- It is estimated that around 25% of the JHULQWHUQDWLRQDOÀUPVKDYHWDNHQWKHUROH air cargo industry’s US$50 billion annual even further. revenue is raised via outsourced sales Air Logistics Group (ALG), founded in operations, which means third-party, so- E\ LWV QRZ FKLHI RSHUDWLQJ RIÀFHU called ‘general sales agents’ (GSAs), are (COO) Stephen Dawkins, has expanded to responsible for generating around $12.5 become a truly global operation, and the billion of the industry’s annual income. company now regards itself as an “inter- While some GSAs may still act purely national cargo management” company as an outsourced sales agent for airlines, – with GSA services comprising just one over the last two decades the role for aspect of a “full range of cargo services”. many has evolved far beyond just sales to Adrien Thominet Dawkins highlights several important the point where the GSA acts as the main elements that have helped to build ALG 6XPPHU CARGO AIRPORTS AIRLINE SERVICES 53 21st International Exhibition for Airport Equipment, Technology, Design & Services 10 – 13 October 2017 Munich Trade Fair, Germany Inspiring better airports www.interairport.com/europe GSA FOCUS into a US$500 million business, such to perform further important functions for as strong knowledge of the market, an the airlines too, strategically if not neces- “ardent commitment” for training, and a sarily physically. He says ECS aims to be a team of highly skilled and experienced “full management” service that can “think professionals that are able to locate busi- IRUWKHDLUOLQHVµ EXWDVDQH[WHUQDOSDUW\ ness for the airlines that they work with. an intelligent GSA can also “think differ- He says all airlines strive to control costs ently” from the airlines, which can lead to DQG SURPRWH HIÀFLHQF\ ZKLOH UHWDLQLQJ better solutions. a good standard in safety, compliance, management and growth, and it is up to Thinking for airlines GSAs to deliver this. For Dawkins, this ECS also aims to be “innovative and smart”, UHTXLUHV VLJQLÀFDQW LQYHVWPHQW LQ WKH LQ and one way to do this is to “think outside frastructure needed to keep the airlines’ the box” for the airlines they work for. Thomi- RSHUDWLRQV HIÀFLHQW DQG JURZLQJ IRU H[ net notes that even big airlines have limited ample, ALG has invested US$8 million into cargo budgets, and so having an intelligent IT over the last few years, he notes. GSA that does some of its thinking for them Neville Karai “reduces risk”. But making sure the airlines Strong market ´XQGHUVWDQG WKH PDUNHW WKH LVVXHV DQG Alongside the continuing trend for airlines needs” is equally important. to outsource elements of their operations, While business in Europe has been rela- Thominet highlights ECS Group’s sig- Dawkins says business is currently “boom- tively subdued over the past months, the QLÀFDQW LQYHVWPHQW LQWR EXLOGLQJ DQ LQ ing” thanks to two external factors: the group has seen a lot of activity in Asia, a tegrated IT system, using CargoSpot, a devaluation of sterling against the US dol- region where the company been building system that “runs on the airline industry lar following the UK’s decision to leave the its network of customers. Thominet also standard SITA communications network” EU has boosted export cargo to the US and highlights South America as a great op- and provides “secure high-speed com- Asia from the UK, a key market for ALG and portunity for GSAs, although the econo- munications with airlines, handlers and WKH DLUOLQHV LW UHSUHVHQWV DQG DLU IUHLJKW mies there can be relatively volatile. forwarders”. He says the IT system deliv- demand has spiked since the container Thominet says ECS is also committed to ers “quality automated reporting, on-line line Hanjin Shipping ceased operations last investing in new technology, into an infra- secure access to bookings, handler inter- August, disrupting global supply chains and structure of IT and, in “transparency.” This IDFHV RQOLQH DQG RQWLPH FRQÀUPDWLRQV driving modal shift to air freight. means being a “fair partner to airlines”, between handlers and forwarders, and Longer-term, Dawkins expects airlines’ by being a “facility for airlines to keep automated pre-billing for airlines for ad- outsourcing of services to continue, pre- themselves informed at every stage in the vanced computing of cargo revenues”. It dicting that in ten years’ time, there will cargo process”. Thominet says the group is also a “tracking and tracing tool for both be a 10 percentage-point increase in the wants to increase its communication with airlines and forwarders”. level of cargo operations managed by the airlines ? in general, but also in order third-party companies – from 25% to 35%. The value of convenience Neville Karai, director of HAE Group, high- Community projects Complete cargo outsourcing lights his company’s focus on “as much One noteworthy element of ECS’s work Business is also going well for another ma- is its sometimes quite deep involvement customer interaction as possible, to give jor global player with more than 20 years as in community projects, especially [the airlines] the greatest chance of plac- in Africa where the company has a an air cargo GSA, ECS Group. Its COO Adrien strong network. Among the aims is ing their product with our customer. For us, Thominet says the company has seen a to build the group’s network in the this means high frequency of interaction, continent and grow the relationships 10% increase in business, year to year. with the continent’s “local and creative marketing, and investments in Like ALG, ECS Group offers a “complete economic stakeholders”. Projects technology to make that interaction easi- LQFOXGHSURYLGLQJÀQDQFLDOVXSSRUW cargo outsourcing solution”, potentially for the Guadeloupe and Martinique er”, Karai notes. across multiple stations. And with demand committees of the League against “For our customers, who are busy Cancer, “helping cancer research, for air freight now expanding rapidly again information, prevention and screening serving their customers, we want them IRU WKH ÀUVW WLPH VLQFH WKH JOREDO ÀQDQ as well as providing assistance to to have options we can offer them in a patients and their families”. ECS is also cial crisis in 2008, Thominet is optimistic providing development aid in Niger. quick, easy format and make the buying about the industry. process as seamless as possible. We try 6XPPHU CARGO AIRPORTS AIRLINE SERVICES 55 GSA FOCUS to give them as much information as they Mark Andrew, general manager for Eu- need to make the decision to buy from rope at AIA Cargo, says the company’s us a straightforward one – be that price, core focus is the cargo GSA business, but service, technical requirements – and it also has in-house departments that fo- create an expectation of what we can cus on other core business like pet reloca- achieve for them.” tion, e-commerce and transport by road. Karai adds: “The marketplace is highly “As a package we can offer our airline’s competitive for both parties so we think client more than a basic GSA model,” he convenience also has a value.” says. “Our group has companies who work He says HAE is “passionate” about in the passenger GSA side and also travel technology and how this can best serve and tourism, so as a group we can offer its customers. “We are one of the few an airline a complete package for cargo GSA companies to have our own soft- and passenger if required.” ware development team, graphic de- He also stresses the importance of signers, and even testers,” he notes. communication, noting: “It’s important “We want to give our staff the tools to to keep all levels of communication be- - tween all parties involved in the chain. We KDQGOH PRUH EXVLQHVV ZDQW WKH FXV Mark Andrew tomer to interact with us more, and always are speaking to our airline clients want to integrate where possible with and providing them with up-to-date mar- each of our airline partners’ systems,” new pharma and perishables markets, by ket reports and trends that can affect emphasising the importance of using “working with our network of colleagues them. Likewise, we communicate heavily technology to achieve this on behalf of overseas”. WRRXUIRUZDUGLQJFOLHQWVYLDHPDLOÁ\HUV their airline principals. phone, portals, social media on our air- “We have devised a bespoke automat- Focus on staff lines’ current rates, promotions and any ed spot pricing mechanism between our ATC Aviation also places a strong em- new services.” airlines and our customers,” Karai adds. phasis on the importance of technology “We are in the middle of the rollout at the in the GSA sector. Ingo Zimmer, CEO of Total cargo management moment. This allows our airlines to give ATC, also emphasises “the strong focus Andrew corroborates the trend towards its customers, who are our customers too, on our staff” alongside “state-of-the-art GSA companies offering comprehensive quicker responses to proving requests technology” as key factors in the com- services today in the industry. “A lot of and the ability to report, audit and record pany’s success. The company is currently GSAs are now turning to offer a ‘total car- the transaction automatically. We think concentrating on several fast-growing go management’ solution, whereby they this will help us sell more for our airline vertical products: pharma, express and are now adding additional services like partners and secure a larger share of the valuables. claims, audits, appointment of GHA con- SME business.” He notes that airlines are under ever- tracts,” he says. “Basically the airline will Stressing again how important tech- increasing pressure to make or keep their ask the GSA to handle all aspects of their nology is in HAE Group’s business, Karai FDUJREXVLQHVVSURÀWDEOH´$LUOLQHVKDYH cargo department, not just sales, reserva- continues: “We think our investments in to know that they can rely on us as their tions and accounts. We are not averse to RXU RZQ WHFKQRORJ\ JLYH XV D VLJQLÀFDQW GSSA,” he notes – also highlighting that these type of contracts and have the set edge as it even allows airlines that we a good communicative GSA will “speak up and capability to offer this, if the airline do not represent in a territory to use our the language of the airlines”. Zimmer requires it.” automated services to supplement what adds: “ATC has always invested time and With no sign of airlines reversing the they do, without them losing control of the money in staff training and technology in trend to continue outsourcing cargo sales sale. For both parties, it’s the chance to order to meet these high demands.” and increasingly other services, and with achieve incremental business. This allows :LWK RIÀFHV LQ FRXQWULHV $7& global air freight markets apparently pick- for less territory-driven sales and both car- already sees itself as a global company, ing up at last, the future looks relatively riers and forwarders have more options at providing services worldwide. But the bright for GSAs – at least for those with QRÀ[HGFRVWVµ company is also looking at how it can the resources to invest in the information He says HAE is also able to understand, increase its network of partnerships with and communications technology that the identify and keep up to date with trends other GSSAs, a trend Zimmer suggests is business increasingly requires, and staff in the industry, such as the emergence of something ATC is already “ahead” of. trained to effectively use it. QQQ 56 CARGO AIRPORTS AIRLINE SERVICES 6XPPHU MIAMI INTERNATIONAL AIRPORT OUR ATTRIBUTES YOUR OPPORTUNITIES Top 10 Global Top Latin American Freight Hub /Caribbean Hub Top U.S. Top Perishable International Products Hub Freight Hub 163 Belly Cargo / Multi-Billion Dollar 106 Freighter Pharma Hub Destinations Multi-Billion Dollar No Slots/Curfews/ Hi-Tech Hub Delays AIR CARGO. SYNERGIZED. MIAMI INTERNATIONAL AIRPORT America’s New Global Gateway XXXNJBNJBJSQPSUDPNt iflymia [email protected] VISIT US AT AIR CARGO EUROPE - STAND #430