October, 2009 Volumec 12, Numbero 9 Ntents
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INTERNATIONAL EDITION OCTOBER 2009 Airports Directory POCCNR Gateway Iraq parole.de MUC: CARGO AT ITS BEST Optimum road connections throughout Europe, particularly to South East Europe All your cargo services under a single roof Impressive catchment area generates approx. 5,200 tons of air cargo daily Fast processing of cargo – Large capacity for short distances between apron and ramp high-loaders and forwarders Busy connections to China, Japan, Korea, India, US, South Africa and other emerging regions. Best European cargo airport* for freight volumes up to 500,000 tons. Located at the centre of the busy economic area of southern Bavaria. Provides all the services expected by successful cargo haulers at Munich Airport. Munich Airport - Best of Europe. *„Best Cargo Airport“, Air Cargo News 2008 www.munich-airport.com ACW3066.pdf 3/11/09 3:05:14 PM October, 2009 Volumec 12, Numbero 9 ntents EDITOR Simon Keeble [email protected] • (704) 237-3317 ASSOCIATE EDITOR Land of infinite infrastructure possibilities Trish Williams 20 [email protected]• (301) 312-6810 CONTRIBUTING EDITORS Roger Turney, Ian Putzger CONTRIBUTORS Airport Directory Douglas Nelms, Peter Conway A-Z contact data worldwide COLUMNISTS 24 Paul Forster, Brandon Fried PRODUCTION DIRECTOR Ed Calahan [email protected] Cargo Gateway CIRCULATION MANAGER Access to Iraq - via Dubai? Nicola Stewart 52 [email protected] ART DIRECTOR CENTRAL COMMUNICATIONS GROUP [email protected] Management series PUBLISHER 56 Thoughts on the ideal company Steve Prince [email protected] ASSISTANT TO PUBLISHER Susan Addy [email protected] • (770) 642-9170 DISPLAY ADVERTISING TRAFFIC COORDINATOR WORLD NEWS Linda Noga 20 [email protected] AIR CARGO WORLD HEADQUARTERS 4 Europe 1080 Holcomb Bridge Rd., Roswell Summit Building 200, Suite 255, Roswell, GA 30076 (770) 642-9170 • Fax: (770) 642-9982 8 Middle East WORLDWIDE SALES U.S. Sales Thailand 12 Asia Associate Publisher Chower Narula Pam Latty [email protected] (678) 775-3565 +66-2-641-26938 [email protected] 16 Americas Taiwan Europe, United Kingdom, Ye Chang Middle East [email protected] David Collison +886 2-2378-2471 +44 192-381-7731 [email protected] Australia, New Zealand Fergus Maclagan DEPARTMENTS Hong Kong, Malaysia, [email protected] Singapore +61-2-9460-4560 Joseph Yap +65-6-337-6996 Korea 2 Editorial 59 Classified 62 People/Events [email protected] Mr. Jung-Won Suh +82-2785-8222 Japan [email protected] 3 Viewpoint 60 Profile 64 Forwarders’ Masami Shimazaki [email protected] 61 Forum +81-42-372-2769 Bottom Line CUSTOMER SERVICE OR TO SUBSCRIBE:?? 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For more information visit our website at POSTMASTER and subscriber services: Call or write to Air Cargo World, 3025 Highland Parkway Suite 200, Downers Grove, IL 60515; telephone 866-624-4457. www.aircargoworld.com ACW OCTOBER 2009 1 editorial A Very Peculiar Ambition ust apologize to UPS. I was under the impression the company was lob- bying the U.S. Congress so that it could compete with FedEx. However when the company says it is all about “fairness” I think what it really means is that if UPS has to bear the aggravation of work- ing with 240,000 Teamsters then so should its major competitor. MFair’s fair apparently. Ironically, $90,000-a-year-plus-pension Teamster mechanics are now threatening to strike UPS Airlines but are prohibited from doing so by the Railway Labor Act. This is the Act that UPS and the Teamsters would like Congress to reclassify so that FedEx employees can have the opportunity to join the International Brotherhood. This assumes the global economy will recover and they will have the luxury of choice. The U.S. Air Transport Association says the industry lost 150,000 jobs during the Bush Administration years. Simon Keeble [email protected] IATA says its member airlines will lose a combined $27.8 billion in the 2008/09 period that will take “years to recover.” The EU is poised to hit the airlines with more cargo cartel fi nes – on top of the $1.3 billion already paid - in the form of Europe’s fi rst class action lawsuit. And the EU unilateral Emissions Trading Scheme will suck $billions more from the airlines – who will do their best to pass on the cost to customers. And this is all because the industry emits less than two percent of global CO2 emis- sions. There’s a lot more hot air coming out the back end of a cow. So why doesn’t the EU tax the fast food industry instead? The result would mean less meat consumption, a drop in obesity levels, lower health care costs and a decline in methane production. The pace of global warming reportedly has fallen this year not because of the airline industry but because of an economic recession. In any upturn, taxing fast food would improve lives, pay for CO2 mitigation and leave more trees for carbon capture. FedEx, UPS, Lufthansa, DHL et al can deploy the most cost-effective, emission-reduc- ing aircraft on the planet and do everything possible to reduce CO2 while making a profi t to keep people employed. However what they and the airline industry cannot do is compete with an EU Commis- sion managed by idealogs determined to exercise a very peculiar ambition at the expense of others. Much like the Teamsters. 2 OCTOBER 2009 ACW viewpoint Where Have All The Flowers Gone? ccording to IATA, air cargo yields are down So what can we do to reinvigorate the demand for air over 20 percent, and when combined with cargo once these “green shoots” start to take hold and the traffic declines of a similar magnitude, overall global economy shows signs of recovery? air cargo revenues are off 40 percent. First, we can’t abandon the long-term industry initia- The cost of crude oil is down from last year tives that will sustain improvements to service quality. Abut with the crack spread, refined jet fuel is moving back Cargo 2000 and IATA’s e-freight initiative are examples of to $80 a barrel. And 227 freighters were sent to the desert programs that hold the promise of improved service and this year. reduced cost. Added together, these ben- On the bright side, most carriers have efits can translate to a better value proposi- moved up their service quality as a result of tion for shippers. less pressure on capacity. And — for once — Second, we should improve the “face” of we’re swimming in ULDs! air cargo to our customers. Do our customer Imagine the world of the head of logistics contact personnel really know how to culti- at a major international manufacturer. The vate business when they make sales calls? global recession has tanked sales. Pundits Can they consistently respond to customer are predicting the end of the consumer econ- needs in ways that are rewarding? It’s easy omy in the U.S. in the near term. Offshore to just assume long-term personal relation- landed costs of production are rising (does ships in our world are productive; but ef- it still make sense to have five plants spread fective employee selection and training can all over Southeast Asia?). The Board wants a assure they really are. report on the company’s “carbon footprint.” David Brooks Finally, we need to recommit ourselves to And then there’s something about having to the importance of advocacy for our industry. screen 100 percent of air cargo next year (note to self: ask We can moan all we want about government mandates, forwarder about this). such as 100 percent screening (“screen everything, see Ship by air? Why bother? nothing”). But unless we can better mobilize our argu- What happened to the alluringly smooth waters of an ments about what’s appropriate for our industry we will easy 4-6 percent annual growth in air cargo promised to get what the political winds hand us. us by Boeing? Where’s that doubling of volume in 15 years The challenge of course is that we don’t have the “In- that we were counting on to fill up the brand new freight- dustry Affairs” staff anymore to take on this work.