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AirBridgeCargo B747-8F Although the US market has shifted down a sprocket and nobody is expecting the dramatic growth of last year, it is still increasing, writes Ian Putzger

perators that serve the put was up a modest 0.95%, whereas hailed by e-commerce logistics understand their requirements better US market look back domestic tonnage climbed 13.4%. providers as a vital step to anchor and see what we can do for them, but fondly on the past year. Emir Pineda, manager of aviation online retail traffic. for the commercial side we work with “2018 was a tremendous & trade logistics, Miami-Dade E-commerce is one of a number of forwarders,” says Krems. Oyear for us,” says Jan Aviation Department, attributes this segments where airlines and airports Cole is bullish on this sector: “We Krems, president of United Cargo, chiefly to the rise in e-commerce. have been trying to capture a larger saw nice double-digit growth last adding that growth was across the “E-commerce continues to play a slice of the market with special year. I expect the same this year.” board. The carrier tabled record good role for us, especially to Asia,” services, as the push for CEIV To underscore its credentials in this breaking revenues of $1.25bn. remarks Jens Tubbesing, president of certification and the construction of arena, Delta has obtained CEIV Several airlines report double-digit Airline Network Services. specialised facilities, such as animal certification, and so has Swiss growth. Cargo’s US Nevertheless, he tries to rein in or temperature-controlled amenities, WorldCargo. business was up 12%, while growth in this segment to some reflect. The European airline has a solid AirBridgeCargo (ABC) registered extent, trying to funnel it onto flights Krems would like to see special reputation for its expertise in special 15% growth in and out of this market. that have spare capacity. “One has to types of cargo, including mail, types of cargo like pharmaceuticals Notwithstanding the strong dollar, curtail e-commerce a bit, not to be account for as much as half of and valuables. The lively efforts of exports have done well in virtually all overrun by it. Some of it is not good United’s cargo business. other carriers have not dented its sectors, remarks Shawn Cole, cargo,” he reflects. position. “Our pharma business had vice-president cargo at Delta. Other Miami is actively targeting New markets significant double-digit growth last carrier executives confirm that e-commerce, having tagged it as a ABC has also put more emphasis on year,” reports Hendrik Falk, head of outbound flows have been strong for strategic growth area. This has led to special sectors. This has led to a cargo, US west, south and South them too — to Europe and the an agreement with Correios, the twofold growth in pharmaceuticals America. Middle East, as well as across the Brazilian postal service, that turns the and a 30% boost of its e-commerce His outfit has also seen double- Pacific. airport into an external customs volumes, reports Vince Ryan, digit growth in perishables. It has The only region that has shown entry point for e-commerce headed vice-president North and South helped that Swiss’s B777 fleet is some softness is Latin America, to Brazil. America. This year the emphasis will growing, with two B777-300s added notably Brazil, Argentina and Under the Correios ‘Compra Fora’ be on growing live animal and last year. “This gives us up to 30 tons Venezuela. (Buy Outside) programme Brazilians dangerous goods traffic, he adds. regularly from the west coast, even Northbound traffic from the area can order goods online from Lufthansa has a long-established with a full passenger load,” says Falk. has performed much better, led by anywhere in the world using a special portfolio of special offerings, but it is Going after high-density perishables Brazil, Argentina and Chile, accord- code, which automatically triggers a pushing hard to grow its business in is improving the utilisation of the ing to Roger Samways, vice-president routing through Miami, where the these. This year there will be a strong aircraft, he adds. cargo sales at . goods are pre-cleared and flown to focus on pharmaceuticals and DHL Global Forwarding has also Carriers have enjoyed solid Brazil. Arriving there, they are treated hazardous materials, says pushed into the perishables market, inbound traffic on most sectors. One as domestic cargo, resulting in much Kindelbacher. but this is no full-throttle assault, says of the strongest areas for Lufthansa faster delivery. Pharma is a strategic target area for Andreas von Pohl, head of airfreight, has been the inbound US market The Columbus Regional Airport United this year. The airline has hired Americas: “We want a controlled from Europe, reports Bernhard Authority has e-commerce ambitions people with expertise both in logistics entry into the perishables market. We Kindelbacher, vice-president, US and for Rickenbacker airport, which and pharmaceuticals. It is also want to make sure it works with our Canada. handles the city’s cargo traffic. To seeking a closer dialogue with capabilities.” The domestic scene has been stand out from the field, the airport pharma shippers. This year is unlikely to yield buoyant. Miami International Airport authority is working to establish an “We will have direct contact with dramatic growth. Nobody is expect- clocked up 2.7% growth to reach 2.3m expedited customs clearance facility pharma companies, because we ing a gangbuster 2019. Kindelbacher tons last year. International through- at Rickenbacker, a move that has been believe we can learn from this to notes that growth has flattened lately,

22 April 2019 aircargonews feature USA

according to the season. of which airline is moving the freight. Lufthansa tightened its control over Angeles is the best example of this,” There is a broad consensus that the Having implemented the venture in quality by taking over the warehouse says one carrier executive. question marks that are looming over both directions on the North Atlantic, in , expanding space at JFK, The bottlenecks of 2017 have the global economy — owing to trade the two carriers recently added feeder adding staff in and taking refuelled interest in alternative conflicts, Brexit and political services to the scope of the joint documentation in-house in Dallas. gateways. Rickenbacker has been the uncertainty — are having an impact activity. The service is seamless. American expanded its warehouse in poster child of this development, on trade flows. Still, nobody expects a United and Lufthansa are looking to Miami and added racks and a rollerbed having built up a gaggle of scheduled reversal into negative growth. extend their co-operation further in system at Dallas, while United had to international freighter operations in “I expect this year to show normal the next phase, Kindelbacher says. alter the infrastructure in Newark, recent years. One of the more recent growth. I don’t see a double-digit The surge of traffic in the 2017 peak reorganised processes in San Francisco additions has been ABC. In April it is increase, but I think it will be stable season exposed serious bottlenecks at and walked away from some business adding a second weekly flight to the for air cargo,” says von Pohl. major US gateways, from Los Angeles to create breathing space. airport, Ryan says. American reduced its China flights and San Francisco to New York and For all these and other steps, “Rickenbacker is pretty much due to passenger demand, but other Newark. nobody feels confident about a driven by inbound traffic. Many markets, especially the north Atlantic, The 2018 peak season produced number of big gateways, due to lack retailers are interested in it for have remained strong, according to little disruption, partly because most of space, capacity and investment and distribution,” he observes. He is not Samways. “We continue to see nniceiciicee operatorsopereratorators hahadd prpreparedepared forfor itit andand cocongestedngested access.access. lookinglooking at ootherther aalternativelternative ggatewaysateways yields,” he adds. many ccarriersarriers tooktook steps in thethe “In“In some pplaceslaces airairportport ininfrastruc-frastruc- at thethe moment. ““II don’don’tt see us addaddinging Many of the current doubts wwilliill intervalinterval to strengthenstrengthen criticalcritical points.points. ttureure is creacreakingking at thethe seams. Los new aiairportsrports in 2019,” hehe sasays.ys. take time to play out, such as thehee scenario of manufacturers shiftingftinng production to other countries. ““TheThe factories are still there. There iss nono change in the short term,” comments Kindelbacher. Last orders please In this situation, capacity is unlikelynliikely to rise dramatically. American isis about to receive the last of its oorderrrder for 42 B787s. It has since placedd an order for another 47 B787 aircraft,raaft, which will start coming on streameaam in 2020. “As they come in, we’ll retiree olderolder aircraft, especially B767s. TheB7 B78787 has the same seat number, but double the cargo payload,” sayss Samways. ABC is also taking a break. Having taken delivery of the lastasst B747-8F on order, it will not increase its fleet until next year,r, when the B777-200Fs start joiningniing the line-up. FROM ALL ACROSS THE WORLD, Parent Volga-Dnepr opened uup an operating base at Houston, WE DELIVER FOR YOU. stationing an An-124 there. Ryanyaan stresses this is not purely for thehe oioill and gas sector. “We wanted a planeplaane With Cargo, the entire world is within reach. Our extensive network of over strategically placed there,” he says.ayys. 450 destinations across 6 continents opens up endless possibilities for your shipping needs. The odd one out in the capacitycitty addition game is United, whichh isis about to undertake the largest Visit aircanadacargo.com today. international network expansionon from its San Francisco hub in itsts history. It is fielding B787s to launchdda dailyily flights to and Delhi,i,, aadddd a second flight to and startrt three weekly frequencies to Melbourne. In addition, it is turningrnning seasonal operations to Aucklandd andand Tahiti into year-round flights andnd will start a route from Denver too Germany. Lufthansa has added two weeklyekkly all-cargo flights each on its routestees toto Chicago and Atlanta. It now runsns 32 freighters a week across the northnorth Atlantic. However, it has enjoyeded a massive boost to its marketablee liliftft to and from the US through itss jjointoint venture with United. This offersrss WE’LL FIND A WAY clients of the pair the fastest andnd most attractive connection for ttheheh route they are looking to, regardlessrdless aircargonews April 2019 23