World Airline Cargo Report Currency and Fuel Swings Shift Dynamics

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World Airline Cargo Report Currency and Fuel Swings Shift Dynamics World Airline Cargo Report Currency and fuel swings shift dynamics Changing facilities Asia’s handlers adapt LCCs and cargo Handling rapid turnarounds Cool chain Security technology Maintaining pharma integrity Progress and harmonisation 635,1*WWW.CAASINT.COM www.airbridgecargo.com On Time Performance. Delivered 10 YEARS EXPERIENCE ON GLOBAL AIR CARGO MARKET Feeder and trucking delivery solutions within Russia High on-time performance Online Track&Trace System Internationally recognized Russian cargo market expert High-skilled staff in handling outsize and heavy cargo Modern fleet of new Boeing 747-8 Freighters Direct services to Russia from South East Asia, Europe, and USA Direct services to Russian Far East (KHV), Ural (SVX), and Siberian region (OVB, KJA) AirBridgeCargo Airlines is a member of IATA, IOSA Cool Chain Association, Cargo 2000 and TAPA Russia +7 495 7862613 USA +1 773 800 2361 Germany +49 6963 8097 100 China +86 21 52080011 IOSA Operator The Netherlands +31 20 654 9030 Japan +81 3 5777 4025 World Airline PARVEEN RAJA Cargo Report Currency and fuel swings shift dynamics Publisher Changing facilities [email protected] Asia’s handlers adapt LCCs and cargo Handling rapid turnarounds Cool chain Security technology Maintaining pharma integrity Progress and harmonisation 635,1*WWW.CAASINT.COM SIMON LANGSTON PROMISING SIGNS Business Development Manager here are some apparently very positive trends highlighted [email protected] and discussed in this issue of CAAS, which is refreshing for a sector that often goes round in circles expressing frustrations PAM LATTY T about its lack of progress in various areas. The World Airline US Sales Director Cargo Report (pages 4-14) discusses not just the volume [email protected] growth and changing patterns, but also the potential for improving SURÀWDELOLW\ IURP ORZHU IXHO SULFHV DQG WKH IRFXV RQ KLJKHU\LHOGLQJ BHAVI ATUL WUDIÀF7KDWLVDWKHPHDOVRUHÁHFWHGLQWKH$VLDUHJLRQDOIRFXV SDJHV Conference Coordinator 36-39), where several cargo handlers highlight their investments not just [email protected] EDITOR’S NOTE in cool-chain facilities but also in their express capabilities, where they SHOBHANA PATEL VHH JURZWK IURP HFRPPHUFHUHODWHG WUDIÀF EHFRPLQJ D VLJQLÀFDQW Head of Finance IDFWRU ,QGHHG RQH FKDOOHQJH LGHQWLÀHG WKHUH ZDV LQ FRSLQJ ZLWK fi [email protected] the current levels of growth and the innovative approaches taken to manage that within growth-restricted airport operating environments. CHARLOTTE WILLIS 7KH6HFXULW\DUWLFOH SDJHV KLJKOLJKWVWKHVLJQLÀFDQWSURJUHVV Events Administrator that has been made by technology companies and equipment [email protected] PDQXIDFWXUHUVLQWKLVÀHOGDVZHOODVWKHSRWHQWLDOIRUIXUWKHUSURJUHVV from greater global harmonisation and standardisation. That lack of SHELDON PINK Creative Director JOREDODOLJQPHQWLVDPDMRUIDFWRUFXUUHQWO\OLPLWLQJWKHFRQÀGHQFHRI [email protected] companies to make the major investments needed to move progress forward more quickly. The Low-cost carrier article (pages 16-18) highlights some setbacks and challenges faced by cargo handlers in this area, but also the potential to engage with this expanding section of the airline business as those airlines’ business models evolve. Address changes and subscription orders to: [email protected] The ULD article (pages 46-48) highlights how the latest generations of ISSN 2054-8958 lightweight containers are further encouraging airlines to outsource their control and management. In terms of technology to track containers EDITORIAL CONTRIBUTORS – and consequently the cargo inside them – ULD pooling companies Martin Roebuck, Mike Bryant now appear to be dismissing RFID as an option, but trials using GPS to and Michael Webber track containers are showing some positive signs. Interestingly, the sea PUBLISHED QUARTERLY BY freight business is also making progress with container tracking, with EVA International Media Ltd major global shipping line CMA CGM rolling out “smart” containers Boswell Cottage, 19 South End ZLWKLQLWVÁHHWRIER[HV$QGVRDLUIUHLJKWPD\QHHGWRÀQGDVROXWLRQ Croydon, London, CR0 1BE, UK TXLFNO\ DV LWV VHD IUHLJKW FRXVLQ ÀQGV D ZD\ WR RIIHU FXVWRPHUV WKH Tel: + 44 (0) 20 8253 4000 visibility that they crave on their shipments’ progress. Fax: + 44 (0)20 8603 7369 So, taken as a whole, there seem to be some positive trends Website: www.evaint.com and genuine signs of progress in several areas of the air freight PRINTED BY EXVLQHVV LQFOXGLQJ GHPDQG SRWHQWLDO SURÀWDELOLW\ DQG RSHUDWLRQDO Headley Brothers HIIHFWLYHQHVV DQG HIÀFLHQF\ :LWK HIUHLJKW DOVR QRZ DSSDUHQWO\ The Invicta Press, Lower Queens Road PDNLQJ JHQXLQH SURJUHVV ² DQG JHQHUDWLQJ VLJQLÀFDQW RSHUDWLRQDO Ashford, Kent, TN24 8HH, UK HIÀFLHQFLHVDFFRUGLQJWRVRPHFDUJRKDQGOHUV²WKHVORZO\HYROYLQJ air freight business seems to be waking up to the potential that new DISTRIBUTED BY technologies can bring.Q Asendia WILL WATERS EVA INTERNATIONAL MEDIA LTD PUBLISHERS & EVENTS SPECIALISTS Editor [email protected] Issue 8 © 2015 | www.caasint.com & [email protected] Content may not be reproduced in any format without written permission from EVA International Media Ltd 6SULQJ CARGO AIRPORTS AIRLINE SERVICES 1 4 4 WORLD AIRLINE CARGO REPORT: Fueling air freight’s recovery Currency swings and cheaper oil bring new challenges and trends 14 LOW-COST CARRIERS: Hard to handle Cargo remains a diffi cult challenge for many LCCs 18 SECURITY: Seeking global alignment Further standardisation will speed up progress in scanning technology 26 NORTH AMERICA FOCUS: Integrated business US cargo airports are still dominated by integrator and passenger hubs 36 ASIA FOCUS: Changing facilities Cargo handlers respond as pharma and e-commerce shipment demand grows 40 COOL CHAIN: Maintaining integrity As pharma continues to expand, so do its regulatory requirements 46 ULD UPDATE: Lightening the load Developments in materials are accelerating airlines’ decisions to outsource 2 CARGO AIRPORTS AIRLINE SERVICES 6SULQJ Origin Content FRA CARGO Remarks WE HANDLE Fraport Cargo Services WITH www.fraport-cargo.de CARE PLAYING BY THE RULES Safety made in Germany. We work in compliance with strict German and European aviation regulations. Our continuous training programs and refresher training keeps us up-to-date in all safety matters. Your benefit: faster processing and a trouble-free service! Fuelingrecovery air freight’s Air cargo is conomic conditions of weakness in the air freight data as the showed considerable year closed in December, albeit boosted in CARGO REPORT CARGO REPORT growing again, but variation globally in 2014, part by uncertainty and backlogs caused by WORLD AIRLINE WORLD AIRLINE global economic E but the environment for 86ZHVWFRDVWSRUWFRQJHVWLRQGULYLQJVRPH air freight demand was temporary conversion from sea to air. uncertainties and supportive overall, particularly for some The picture has also become complicated regions and trades. Global freight tonne in recent months by the rapid drop in oil YDULDWLRQVVLJQLÀFDQW kilometres (FTKs) expanded 4.5% in 2014 prices and currency swings, including the currency swings, FRPSDUHGWRDFFRUGLQJWR,$7$ÀJ drop in the value of the Euro, the Japanese XUHVDVLJQLÀFDQWLPSURYHPHQWRQJURZWK Yen, and the Russian Rouble against other and the oil price of just 1.4% in 2013, although average major currencies including the US Dollar, general cargo yields remain depressed. Sterling and the Swiss Franc. decline will bring &RQFHUQV KDYH UHHPHUJHG DERXW WKH further challenges, health of the global economy in early 2015 Yen weakening boosts exports DQG FHUWDLQ EXVLQHVV FRQÀGHQFH LQGLFHV 7KH ZHDNHQLQJ RI WKH <HQ KDV DOUHDG\ EH opportunities, have weakened, although there was no sign gun to stimulate exports from Japan, and in and new trends, $LUOLQHIRFXV&DWKD\3DFLÀF$LUZD\V writes Will Waters James Woodrow, director of cargo Main issues and trends over the last 12 months: The year started very slowly in Jan- uary and February 2014, but improved from March onwards and culminated in a good peak season in Q4. TPAC was assisted by the US west-coast port congestion DQGWKHLPSURYLQJ86HFRQRP\2YHUDOOFRPSHWLWLRQUHPDLQHGÀHUFHDQGRQO\ really in Q4 did demand outstrip supply and therefore drive up rates. Our belly capacity has continued to grow as we receive further B777-300ER and A330-300 aircraft. This has further strengthened our intra-Asia and longhaul QHWZRUNV:LWKDIXOOÁHHWRI%IUHLJKWHUVRXUWUDQVSDFLÀFIUHLJKWHUFRYHU age has continued to grow, with expansion into MEX, GDL and LCK and further capacity into key hubs such as ORD, LAX and JFK. Main issues and trends for the coming 12 months: Competition is expected WRUHPDLQWRXJK7KH$VLD(XURSHWUDGHODQHUHPDLQVWKHPRVWGLIÀFXOWZLWKD multitude of players – some of which continue to expand aggressively – and JHQHUDOO\ZHDNGHPDQG/RZHUIXHOSULFHVZLOODVVLVWWKHSURÀWDELOLW\RIDOORSHUD tions, however, particularly freighters, where it makes up a large proportion of the overall costs. Security and safety issues will remain top of the agenda for cargo, be it lithium batteries, or TSA and other national bodies’ requirements, etc. ,QRXUPLOOLRQWRQQHFDSDFLW\&DWKD\3DFLÀF&DUJR7HUPLQDO &3&7 LQ+RQJ.RQJRSHUDWHGVPRRWKO\IRUWKHIXOO\HDU,Q-DQXDU\RXUÀUVWODUJH third-party customer, EVA Airways, started operations. CPCT is the most advanced cargo handling terminal in the world and we will continue to work hard to further improve service levels for our customers. Further third-party customers are expected to join over the coming years. &DWKD\3DFLÀF'UDJRQDLUFRPELQHGWUDIÀF Cargo and mail carried:WRQQHV Cargo and mail revenue tonne km
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