April, 2011 Volume 14, Number 4 Contents MANAGING EDITOR Jon Ross Jon.Ross@Aircargoworld.Com • (770) 642-8036

Home , AirTran Holdings, Emirates SkyCargo, Mas Air, Maximus Air Cargo, Roy Kinnear, SkyTeam Cargo

INTERNATIONAL EDITION

APRIL 2011

Air Cargo Excellence Survey results

Latin American imports Humanitarian aid preparation IATA conference coverage WATCHING OVER YOUR CARGO

A GLOBAL LEADER IN CARGO AIRCRAFT CHARTERS

With access to over 50,000 aircraft through our worldwide network of offices, and with the utilisation of global procurement and local market knowledge, ACS is able to offer the most competetive charter rates, providing the most cost effective and convenient solution for your cargo charter requirements.

ACS arranges over 5,000 full charters each year, with global revenues in excess of $350million. With over 20 years worldwide experience ACS provides unrivalled charter solutions.

WWW.AIRCHARTERSERVICE.COM

NORTH AMERICA - SOUTH AMERICA - EUROPE - AFRICA - MIDDLE EAST - CIS - ASIA April, 2011 Volume 14, Number 4 contents MANAGING EDITOR Jon Ross [email protected] • (770) 642-8036

SPECIAL CORRESPONDENT Martin Roebuck Conference Coverage [email protected] +44.(0)20-865-70138 21 IATA World Cargo Symposium CONTRIBUTING EDITORS Roger Turney, Ian Putzger

CONTRIBUTING PHOTOGRAPHER Region Focus Rob Finlayson 24 Latin America: Import increase leads to cargo growth COLUMNIST Brandon Fried PRODUCTION DIRECTOR ACE Awards Ed Calahan [email protected] 30 Complete 2011 Air Cargo Excellence survey results CIRCULATION MANAGER Nicola Mitcham [email protected] Humanitarian Aid ART DIRECTOR Planning for a crisis CENTRAL COMMUNICATIONS GROUP 36 [email protected]

PUBLISHER Steve Prince [email protected]

ASSISTANT TO PUBLISHER Susan Addy [email protected] • (770) 642-9170

DISPLAY ADVERTISING TRAFFIC COORDINATOR Linda Noga WORLD NEWS [email protected]

AIR CARGO WORLD HEADQUARTERS 1080 Holcomb Bridge Rd., Roswell Summit 6 Europe Building 200, Suite 255, Roswell, GA 30076 (770) 642-9170 • Fax: (770) 642-9982 11 Middle East WORLDWIDE SALES

U.S. Sales Japan 14 Asia Associate Publisher Masami Shimazaki Pam Latty [email protected]. 30 (678) 775-3565 ne.jp 18 Americas [email protected] +81-42-372-2769 Europe, Thailand United Kingdom, Chower Narula Middle East [email protected] David Collison +66-2-641-26938 +44 192-381-7731 [email protected] Taiwan DEPARTMENTS Ye Chang Hong Kong, [email protected] Malaysia, +886 2-2378-2471 4 Editorial 42 Classifieds 46 Opinion Singapore Joseph Yap Australia, +65-6-337-6996 New Zealand 40 People/Events 45 Bottom Line [email protected] Fergus Maclagan [email protected] India +61-2-9460-4560 Faredoon Kuka RMA Media Korea +91 22 6570 3081 Mr.?? Jung-Won Suh [email protected] +82-2785-8222 [email protected] Air Cargo World (ISSN 1933-1614) is published monthly by UBM Aviation. Editorial and production offices are at 3025 Highland Parkway Suite 200, Downers Grove, IL 60515; telephone 866-624-4457. Air Cargo World is a registered trademark of UBM Aviation©2011. Periodicals CUSTOMER SERVICE OR TO SUBSCRIBE: (866)624-4457 postage paid at Downers Grove, IL and at additional mailing offices. Subscription rates: 1 year, $80; 2 year $128; outside USA surface mail/1 year $120; 2 year $216. Single copies $20. Express Delivery Guide, Carrier Guide, Freight Forwarder Directory and Airport Direc tory single copies $14.95 domestic; $21.95 overseas. Microfilm copies are available from University Microfilms, 300 North Zeeb Road, Ann Arbor, MI 48106. Opinions expressed by authors and contributors are not necessarily those of the editors or publisher. Articles may not be reproduced in whole or part without the express written permission of the publisher. Air Cargo World is not responsible for unsolicited manuscripts, photographs or artwork. Please enclose a self-addressed envelope to guarantee that materials will be returned. Authorization to photocopy items for internal or personal use is granted by Air Cargo World, provided the base fee of $3 per page is paid directly to Copyright Clearance Center, 222 Rose- POSTMASTER: Send address change to: wood Drive, Danvers, MA 01923, and provided the number of copies is less than 100. For authorization, contact CCC at (508) 750-8400. The Air Cargo World 3025 Highland Pky Ste 200 Transactional Reporting Service fee code is: 0745-5100/96/$3.00. For those seeking 100 or more copies, please contact the magazine directly. Downers Grove, IL 60515 Member of Audit Bureau of Circulations Ltd. 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 www.aircargoworld.com 866-624-4457. ACW APRIL 2011 3 editorial

A new season brings new possibilities for the industry

hat a winter it’s been. From massive snowstorms in the U.S. and Europe effectively halting air (and ground) traffic for days at a time to the constant specter of the Transport Security Agency’s 100 percent screening deadline, the air cargo industry has gone Jon Ross through a few extremely challenging months. Managing Editor WAs of a few days ago, spring is finally here. With it comes the promise of no further snow delays (hopefully). Of course, there are a whole host of issues still on the horizon, but the changing of the seasons brings a new perspective on these challenges. In this issue, our European correspondent, Martin Roebuck, examines some of the challenges that were discussed during the International Air Cargo Associa- tion’s World Cargo Symposium in Istanbul. E-freight is perennially on everyone’s list of stumbling blocks, and attendees didn’t seem too pleased with some of the TSA’s new requirements. (It should be noted that Martin said Istanbul was snowy and windy the entire time; I lucked out in that respect, traveling to Air- Cargo 2011 in sunny San Diego.) Another tipping point for the air cargo industry is uncertainty in the Middle East. Martin first reported about the Egyptian protests and their effect on the industry last issue; now the Libyan situation is hurting air traffic. We should hope the regional instability ends soon, so we can start sorting out the short- and long-term challenges that will arise for the industry. The industry does have cause for celebration this month, as we’ve released the results of our annual Air Cargo Excellence survey, which allows freight forwarders to rank their carrier clients and airlines to evaluate airports. Emirates SkyCargo, KLM and Southwest Airlines all received top scores in their respec- tive tonnage categories. In the airport division, winners included Memphis, Lou- isville, Anchorage, Amsterdam, Santiago, Singapore and Dubai. Congratulations to all our winners for excelling in performance, value and customer service, among other categories, in 2010. Who knows what the rest of the year will hold. Will the air cargo industry see renewed growth or be derailed by security problems and a host of other issues? Only time will tell, but from where I stand right now, things are certainly looking up.

4 april 2011 ACW Carolin Drott Aviation Marketing & Business Development

What do you get from Vienna International Airport’s top location? A shortcut to Central & Eastern Europe.

At Vienna International Airport, your cargo arrives directly in Central & Eastern Europe. VIE is an ideal gateway to the growing markets of Slovakia, the Czech Republic, Hungary, Slovenia, Croatia – and beyond. With excellent transport links, your cargo is always on the right track.

www.viennaairport.com

VIE_Ortstafeln_engl_210x283.indd 1 01.03.11 15:44 Europwoe r ld Asian e w middlse east africa americas FedEx adds Stansted to Triple-7 circuit

edEx Express has unveiled a Boeing 777 freighter at its London Stanst- Fed facility. This marks the first scheduled cargo operation at the airport to use this aircraft. The express carrier described the latest addition to its fleet, which will operate on the Stansted-Memphis route, as “part of the evolution of FedEx Express sustain- UK-based Hybrid Air Vehicles is close to signing an agreement with a non-U.S. company that operates more than 100 aircraft for a fleet of lighter-than-air dirigibles ability effort,” with an ultimate goal of helping reduce its global footprint. The aircraft can carry up to 6.8 tonnes more than the MD-11, which was previously deployed on the route. The 777’s Cargo carriers see emissions and fuel-burn are both 18 percent lower relative to the extra capacity. FedEx has so far taken delivery of 12 B777s, including two based at its Eu- blimps in their futures ropean hub at Paris-Charles De Gaulle Airport that now link the airport with Memphis International Airport and Hong ook up to the sky two years skyline. But that was an era epito- Kong. Another 33 of the aircraft remain from now and you may mized by the German Zeppelin air- on order. see a new phenomenon ships and the catastrophic fire that “The environmental efficiencies of this passing overhead. It will ripped through the Hindenburg in new aircraft, coupled with its attractive be the Hybrid Air Vehicle New Jersey in 1937, which effectively payload range and economics, makes the L(HAV) and what could be the air ended further development of the air- B777F the best choice for FedEx Express cargo freighter of the future. A vast, ship age. and its customers,” David Binks, senior lighter-than-air dirigible, it will be ca- What has changed since that by- vice president of operations for FedEx Ex- pable of carrying up to 200 tonnes at gone era? Just about everything, ac- press Europe, said in a statement. a fraction of the fuel cost of conven- cording to Gordon Taylor, marketing Nick Barton, managing director of tional cargo aircraft. manager for HAV. “What we have London Stansted Airport, celebrated the No, this is not some piece of April done is to entirely re-examine the ba- new aircraft. “Having obtained Code F foolery. A major carrier is on the sic principles behind the science of status for the next generation aircraft to verge of signing a contract for an en- lighter-than-air vehicles and applied operate on our runway, and as the only tire fleet of these new craft. modern technology and materials to major London airport with capacity for The concept has been developed the concept,” he said. The company growth, we’re delighted FedEx selected by a team of British scientists, who has come up with a mix and match of Stansted as a base for one of its new have established their research and technologies that incorporate mod- B777Fs,” he said. development facility at a site north ern aerodynamics, vectored engine “We’re committed to improving our of London where the first British air- thrust, lighter-than-air design and the environmental and operational perfor- ships, the R100 and R101, were built principle of hovercraft engineering. mance,” Barton said. “With lower noise and flown more than 80 years ago. “It is why we are calling it a hybrid and emissions levels than the MD-11, this The two original hangars for these because it really does reflect every investment will be welcome news to the huge craft are still standing and, at modern technology available to us,” communities around the airport.” ACW more than 190 feet high and 800 feet Taylor said. long, continue to dominate the local (Continued on page 8)

6 april 2011 ACW More capacity to move your cargo around the globe.

Now we have room for every size, shape and quantity to connect Asia, Europe and USA. For more information, please access www.thaicargo.com/what’s new.

T H A I C a r g o , A LW A Y S D E L I V E R S T H E B E S T. www.thaicargo.com Europe Asia middle east africa americas americas africa middle east Asia Europe

(Continued from page 6) module, the fuel tanks, the four en- Atlantic since the heyday of the Zep- Hybrid Air Vehicles has built a gines, the propulsion ducts and bow pelins in the 1930s,” Taylor said. scale prototype of the craft, which thrusters,” Taylor said. “These parts The modern-day hybrid airships could soon be floating across the will then be flown to Arizona to be in- may have eliminated the risk of skies in a fully scaled-up version. Its corporated into the envelope, which fire from hydrogen, but what about buoyancy will be provided by a huge will form the main body structure.” ground fire when operating in Af- ultra-lightweight structure made of ghanistan? super polyester. It will be powered “Helium is an inert gas, so it will by rotating engine plants, which “The first not explode,” he said. “What we have will adopt the hovercraft principle also discovered is that the pressure to anchor the craft to the ground [commercial use] inside the envelope is so low that if when landing and will allow a near a hole is made, say by a bullet, the vertical take-off. would see the vehicle air seeps out very slowly without any Perhaps most significantly, the re- operating in a pure catastrophic effect.” born airship will not be filled with What of the commercial prospects highly flammable hydrogen, which freighter role; the for the air ships? Hybrid Air Vehicles was the downfall of its predecessors. already has designs on the draw- Instead it will be filled with a mix of second would be in ing board for craft capable of car- 60 percent helium and 40 percent air. rying payloads of between 20 and What Hybrid Air Vehicles has been the heavylift arena, 200 tonnes. It is a design concept waiting for is a launch customer to particularly linked to that can easily be extracted to allow really lift its project off the ground craft carrying up to 1,000 tonnes. and into the air. Cue the U.S. Depart- oilfield development “We see two principle markets ment of Defense, which has been suf- for the commercial operation of the ficiently impressed with the modern- work.” HAV,” Taylor said. “The first would day concept to award a $517 million see the vehicle operating in a pure contract to build a 300-foot-long — Gordon Taylor, freighter role; the second would craft, which will be used for surveil- Hybrid Air Vehicles be in the heavylift arena, particu- lance work in Afghanistan. larly linked to oilfield development Working on a tight schedule with work.” U.S. defense contractor Northrop After highly sensitive surveil- Typically, a major logistics ser- Grumman, the company must build lance equipment has been fitted by vice provider could employ HAVs to a vehicle that is capable of staying Northrop Grumman, flight testing will maintain supply chains in, say, the aloft for 21 days at a time and can be be undertaken in the U.S. before the auto sector. “What we are providing flown with or without a three-man HAV is flown across the North Atlan- is the opportunity to offer deferred crew. The craft is scheduled to enter tic to be pre-positioned in the UK, pri- airfreight service at the cost equiva- service in early 2012. or to call up to its Afghanistan theater lent of seafreight,” Taylor said. “We are going to be building the ba- of operation. “That will be the first In the heavylift market, Taylor’s sic structure, including the payload time an airship has flown across the company is already in close negotia-

8 april 2011 ACW Europe Asia middle east africa americas americas africa middle east Asia Europe

tions with a couple of major oil out- tract with a major airline to acquire that it is a non-U.S., publicly listed fits to provide lift capability, with one a fleet of HAVs operating with a pay- company that currently operates company expected to place orders load capability in the 20- to 50-tonne more than 100 aircraft. for four craft. “The other company range. “We really do see a big potential sees the potential to use the craft to “We expect to sign a contract in in the freighter market,” Taylor said. develop new oilfields,” Taylor said. “It June and will then have two years in “One of these craft could easily fly would avoid the need to build roads which to deliver the first craft,” Taylor between China and Europe in three and other infrastructure requirements said. “The order would be in the dou- days at a quarter to half the fuel cost to reach these often remote sites.” ble-digits and the craft used to aug- of conventional aircraft and with- Intriguingly, it is in its commercial ment a carrier’s existing operations.” out the need to operate airport to role that Taylor says the company is Taylor remains tight-lipped about airport, saving further on time and tantalizingly close to signing a con- the potential buyer, revealing only handling costs.” ACW Fuel spike threatens industry rebound fully electronic air cargo in- The International Energy Agency couraging. Companies now had sur- dustry would cut its costs by had announced that “cheap oil” was plus cash and were committing to A$4.9 billion a year, a crucial over, and Pearce said airlines would capital projects as well as investing contribution to making the avia- have to base their cargo pricing in people, he commented. Purchas- tion business sustainable, according models on a price of $100 regardless ing managers globally were as con- to IATA director general and CEO of developments in the Middle East, fident as they had been at the 2007 Giovanni Bisignani. since the risk premium attaching to peak of the business cycle. Airlines were in the black by $16 the turmoil there accounted for only U.S. consumer confidence was billion last year, a major achieve- $10-15 per barrel. picking up despite serious prob- ment after $50 billion of losses over Airline chief financial officers lems in the economy and a huge fis- the last decade, but Bisignani said started to lose confidence in Janu- cal deficit, but European consum- a margin of 2.9 percent represented ary, according to an IATA poll. ers were “moving sideways,” Pearce no real cause for celebration. He was Heads of cargo were gloomier still, said. China was also slowing as the encouraged by the latest GDP growth giving prospects for future volumes government tried to put a brake on forecast of 3.1 percent for this year, an average score of 70 (on an index inflation, affecting both purchasing though the soaring price of oil will where 50 is neutral) but rating the managers and consumer sentiment. surely have economic forecasters ad- yield trend at a barely-improving 55. Cargo rates excluding surcharges justing their sights. Growth in semiconductor ship- were slipping, and Pearce quoted a An oil price averaging $96 per bar- ments, which closely match the fall from $2.90 to $2.40 per kilo from rel this year would halve airline prof- trend in broader airfreight volumes, southeast Asia to Europe in the sec- its to $8.6 billion. slowed sharply to 6 percent at the ond half of 2010. The base rate fall “World trade growth reached 10 end of last year. This reflected the was serving to offset the application percent late last year. The question end of the recent restocking cycle, of fuel surcharges, he said. Load fac- is how durable that will be given Pearce said. tors had also fallen globally by three world oil prices,” said Brian Pearce, Business expenditure was en- or four percentage points since May IATA’s chief economist. 2010, though were still at a Pearce said profits from relatively healthy 77-78 per- cargo had climbed back to- cent. ward their 2006-07 level in A significant increase in de- the first half of 2010, but liveries of widebodied aircraft came under pressure as this year, which would add soon as fuel prices began in- 8 percent to the global fleet creasing. “If prices are still if no retirements were taken at these levels, there will be into account, may further dent some slowdown in economic profits, even though emerg- growth. The risk is not vol- ing markets such as Latin Brian Pearce umes disappearing, but a is IATA’s chief America, the Middle East and further squeeze on margins,” economist Asia Pacific were still running he said. strongly, Pearce said. ACW

ACW april 2011 9 CAG-043-11 [email protected] 1 8/3/11 5:01 PM ASIA EUROPE AMERICAS wo AFRICArld n e MIDDLEw EASTs Libyan protests affect air traffic in region

he protests in Libya and the resultant action taken by a coali- Ttion of United States, British and other worldwide forces has impacted airline schedules into the country. The Federal Aviation Authority (FAA) is now forbidding all U.S. carriers and U.S. commercial operators from flying to Tripoli and the surrounding Etihad first touched down in Seoul in December 2010 region. The moratorium does not extend to people operating aircraft registered in the U.S. for a foreign carrier. The agency has allowed for emergency landings into the affected area as long Etihad’s crystal ball: as the pilots complete a report within 10 days after the incident. The moratorium, enacted on March 20, was in 2011 cargo growth place until further notice. “An armed conflict is ongoing in Libya and presents a potential hazard to civil aviation. The runways at Libya’s urrent events in the Middle cent year-on-year ATK growth. FTK international airports, including the East have made air cargo growth kept pace at 26 percent. main 3 international airports serving strategies in the region — Therefore, yield was also a signifi- Benghazi (HLLB) and Tripoli (HLLT) may be damaged or degraded,” the agency from daily operations to cant driver of cargo revenue growth said in a statement. “Air navigation with year-on-year growth of 34 per- humanitarian missions — services in the Tripoli (HLLL) FIR may somewhat tenuous. In fact, a recent cent. Yield improvement was accom- also be unavailable or degraded. In ad- Air Cargo World online poll found plished through a combination of dition, the proliferation of air defense that the majority of the magazine’s such factors as stronger demand in weapons, including Man-Portable Air- readers think the ongoing unrest in 2010, a focus on improving revenue Defense Systems and the presence of the region will be a defining story- performance on high demand legs, military operations … pose a potential line this year. and a drive to improve the cost effec- hazard.” But it’s not all about protests in tiveness of offline routings. British Airways has canceled its the Middle East. At Etihad Crys- Our expectations for 2011 are that daily service from London Heathrow tal Cargo, Roy Kinnear, senior vice we will see further revenue growth, to Tripoli until October 29. The carrier is offering refunds and a free flight president of cargo at Etihad, recently again outstripping ATK growth. change to customers hoping to fly to This will be partly driven by capac- sat down to answer some questions Lybia this summer. about the carrier’s growth and plans ity growth, partly through continued On March 21, Ryanair and a host for the future. yield increases and partly through of other carriers were forced to switch improved load performance on exist- their routings landing in Trapani Air- Air Cargo World: What was your ing traffic lanes. port, which is on the coast of Sicily, growth in cargo capacity last year in because it was being used as part of terms of scheduled services? ACW: Are the main end destina- the military action. The Italian Civil Roy Kinnear: Our belly cargo ATK tions for cargo still in Europe? How Aviation Authority planned to open capacity grew by 20 percent (year- important to cargo are the increased the airport back up to civilian traffic on-year) in 2010, outpaced by our India and China frequencies? on March 28. Passengers flying out of Italy were directed to Palermo Airport, freighter ATK capacity growth of 40 Kinnear: Europe will always repre- which is an hour away. ACW percent. Overall, this led to a 25 per- sent a significant cargo market, both

ACW april 2011 11 MiddLe east africa americas europe ASIA

in terms of origin and terminating From a cargo perspective, Etihad had’s total earnings. The geographic business for us. However, with the in- has executed an expansive Special position of Abu Dhabi offers excel- troduction of daily MD-11F services Pro-rate Agreement that incorporates lent cargo carriage capabilities and from Shanghai via Mumbai (three the Virgin Australia flights between means that Etihad is less susceptible times weekly), Delhi (twice weekly) Sydney and Abu Dhabi and vice versa. to the peaks and falls of traditional and Chennai (twice weekly) and the passage flows. thrice-weekly Beijing to Abu Dhabi ACW: What is your strategy for A330-200F service, China and India Africa? ACW: Etihad’s CEO has said he are now also very important markets Kinnear: Africa is becoming an plans to add no more than six new that help to feed our Joint Produc- increasingly important market for destinations in the next two or three tion (Passenger) Aircraft network. Etihad Crystal Cargo. It is now a key years, and the focus would be more This year, we plan to add two addi- part of the business, illustrated by about increasing frequency. Does tional weekly passenger our growth in freight- this include cargo? flights to Geneva, Mi- er operations there, Kinnear: Cargo route development lan, Brussels and Bei- which now include Ad- is separate to the development of jing, plus an additional dis Ababa, Lagos, Nai- the passenger route network. Whilst four frequencies a week robi, Johannesburg and cargo obviously takes into account to Paris and three to N’djamena. expansion on passenger belly hold Manchester, which will We are rev iew ing program, we have the ability to ex- provide additional belly further operations to pand in our own right for freighter- opportunities for cargo. Africa and will consider only services. These increased fre- opening new destina- quencies are possible tions where it is com- ACW: Can Abu Dhabi compete suc- following the deliveries mercially viable. cessfully with Dubai as a regional of three A330 passenger transhipment hub? aircraft and two B777 Roy Kinnear ACW: Which specific Kinnear: Going forward, we rec- passenger aircraft. senior vice president of cargo new markets are you ognize the importance of maintain- targeting globally? How ing growth in both transit traffic ACW: What uplift do you get from will you deploy the 777 freighter? and the growth of point-to-point Seoul? Kinnear: We are still reviewing our traffic in and out of Abu Dhabi. The Kinnear: Etihad began passenger options on where we will operate the very fact that Abu Dhabi Airport operations to Seoul in December B777F. Obviously, we will gain the and Etihad recognize the need for 2010. Seoul, a market that we have best returns from operating it on our the development of a new cargo fa- served over the years through inter- longer sectors. cility demonstrates our confidence line partnerships, is indeed interest- We were also the launch customer in the growth of Abu Dhabi and its ing from a cargo perspective and, for the A330F, which is performing ability to deliver. whilst not having a current guaran- very well. The economics are impres- teed space allocation, we are look- sive, and as the launch customer, we ACW: How constrained is the cur- ing forward to working much more have been very satisfied. This me- rent cargo terminal at Abu Dhabi In- closely with Asiana Airlines, our dium-sized freighter has enabled us ternational Airport? How do you plan passenger codeshare partner, in the to increase frequency on key lanes, to accommodate growth in the next near future. greatly improving our product offer- three years? ing. Frankfurt Haan was increased Kinnear: Etihad and Abu Dhabi ACW: How are eastbound servic- from two to four operations per Airport are doing a great job in ex- es to Asia and Australia, and what week, Beijing from two to three and panding the existing airport infra- cargo benefits will accrue from the Milan from one to two. structure to facilitate the current partnership with Virgin Blue? The range capability of the A330F growth. We recognize the need in Kinnear: Cargo flows to Austra- made routes such as Beijing and the interim period, before the open- lia from Abu Dhabi are traditionally Hong Kong viable with little or no ing of a new cargo facility, to further strong, and our alliance with the Vir- payload penalty. expand infrastructure capability to gin Blue Group is a very important cope with Etihad’s growth, and we strategic development for this. The ACW: What contribution does car- will plan around this accordingly. alliance is an extremely positive step go make to Etihad’s overall revenue? towards growing our already strong Kinnear: Last year, Etihad Crystal ACW: What benefits is CHAMP position in the Australian market. Cargo contributed 20 percent to Eti- bringing you? Is it helping your cus-

12 april 2011 ACW ASIA EUROPE AMERICAS AFRICA MIDDLE EAST

tomers meet more stringent security requirements? In the news.... Kinnear: Etihad Crystal Cargo is Boeing and Israel-based EL AL have signed a Kenya Airways has announced plans to bring in very happy with the appointment contract for 737-900ERs that are worth a total of a freighter to serve regional, intra-African desti- of CHAMP as our global electronic $343.2 million. “These additional airplanes will nations. Group managing director Titus Naikuni Advance Cargo Information (ACI) help us expand our fleet to meet the growing de- said the carrier was looking to source a freighter filing partner. CHAMP is supplying mand from our customers. We will use the Boeing for the start of its new financial year in April to us with its Global Customs Gate- 737-900ERs to replace the current fleet of 757- complement widebody passenger capacity to Lu- way, which is ensuring the business 200s and to serve the growing markets in our net- saka, Lilongwe, Harare and Kinshasa… EgyptAir meets all necessary requirements work,” Elyezer Shkedy, EL AL’s CEO, said in a state- is seeking to lease out up to 25 aircraft — more for electronic pre-arrival cargo ment... Air China chartered 28 flights to evacuate than one-third of its fleet — as it tries to offset screening information in markets 9,000 Chinese nationals from Libya in what is the the economic impact of the anti-government pro- around the world. carrier’s largest humanitarian project. The mission tests in Egypt. The carrier said in a statement that There is an increasing focus on was completed by flying nearly three planes a day it was offering aircraft, including its latest B777- global compliance relating to ACI, for 10 days from Beijing Capital International Air- 300ERs, to its Star Alliance partners, together with and as security regulations are port. According to a statement, “there are no reg- crew. It is also understood to have approached tightened, we are fully complying ular scheduled flights by Chinese airlines between lessors. Eighteen days of protests across Egypt with governments worldwide. Fol- China and Libya, so Air China deployed its staff ended when President Hosni Mubarak resigned, lowing our long and successful part- based in Europe to Libya to prepare for the evacu- but traffic has not recovered, forcing EgyptAir to nership with CHAMP, the company ation.” ... Air Partner operated two relief flights cancel 75 percent of its flights. Chairman Hussein assisted us in meeting the January to Tunisia to help homeless people fleeing Libya Massoud said the airline had grounded 40 percent 1 deadline for EU ICS and paved the for the safe haven of the neighboring country. A of its fleet since the civil unrest began, and he told way to meet other existing and fu- B747-400 freighter flew 91 tonnes of blankets, news agencies he was looking to offer employees ture ACI requirements. ACW tents and other supplies from Dubai to Djerba… unpaid leave. ACW AIR CARGO WORD • Visuel Trapèze : 178 x 124 mm FU • Départ le 10/02/11 • Parution le 07/03/11 ALC • BAT • SG

14,500 EMPLOYEES, OVER 11,500 FLIGHTS A DAY, MORE THAN 1 40 COUNTRIES: ALL SYNCHRONIZED.

ce offering you the largest With SkyTeam Cargo, the world’s leading carriers come together tocontinents form the onlyand Cargo14,500 allian people working for 1,500 daily flights spanning all global network. With over 1 and smoothest manner. the alliance, we make sure your cargo gets to where it needs to be in the quickestskyteamcargo.com For further information, as well as e-tracking for your cargo, please visit

ACW april 2011 13 ALLI_1101078_Trapeze_178x124.indd 1 10/02/11 15:39:25 woAsia r ld MiddnLe easte w s africa americas europe americas europe Asia middle east africa Beijing now second biggest airport

ccording to figures released last month by Airports Coun- Acil International (ACI), Bei- jing Capital International Airport has passed London Heathrow to become the second largest airport in the world. Beijing’s 2010 ranking rose 13 percent over its 2009 numbers on the strength of a reported 14.2 percent rise in international passenger traffic in the Asia-Pacific region. Freight in the region rose a staggering 18.6 percent. DHL officials said inland transportation has shifted away from shorthaul road feeder In 2010, total passengers world- services to longhaul trucking and airfreight wide rose 6.3 percent over 2009, and the number of total international passengers crept up 7.5 percent. Total international freight skyrocketed 20.5 Development boom percent, with total cargo moving up 15.2 percent. Hartsfield-Jackson Atlanta Inter- national Airport remains the largest is changing China’s airport in the world. Chicago O’Hare has moved up to third place on the strength of 3.3 percent growth. Heath- transportation row fell from second place to fourth place. Most of the airport growth was experienced in the Asia-Pacific and Middle East markets, but Charlotte’s infrastructure airport benefitted from a solid 10.4 percent increase. ACI used its numbers as justification n December, a new contender activity. At the end of January, Beijing for improving airport infrastructure. entered the ranks of China’s as- revealed that it will spend more than “GDP growth projections for this piring international airfreight $4.5 billion during the next five years and the coming years are high creat- gateways when a Rayyan Air on new airport projects in the prov- ing a positive outlook for demand for freighter from Islamabad touched ince. Four new airports will be devel- air transport. This underpins the need down in Kashgar. This marked the oped, and six others will be expanded to continue to expand and modernize I airport infrastructure to maintain high start of international freighter flights or relocated. standards of efficiency and customer to what used to be a major stop on the This is part of a massive develop- service,” said Angela Gittens, the or- Silk Road. For their part, the Chinese ment drive that aims to add more than ganization’s world director general, in authorities have left no doubt that 45 new airports to China’s infrastruc- a statement, noting that passenger and they intend to develop Kashgar into ture during the next five years, includ- freight growth outpaced GDP last year. a Central Asian cargo hub; they have ing four major hubs. Between 2011 “More than ever, airports will be bestowed special development zone and 2015, Beijing will spend about asked to finance these projects au- status to the region coupled with a $230 billion on the aviation sector. tonomously without public funds,” she generous investment package for in- The authorities’ goal to develop added, “requiring private and public frastructure development. the central and western regions has airports to be empowered to gener- The whole western province of gathered strong momentum in the ate necessary returns on their invest- Xinjiang, where Kashgar is located, past two years. In response to rising ment.” ACW is poised to see frantic development costs in China’s developed coastal

14 april 2011 ACW Asia MiddLe east africa americas europe americas europe Asia middle east africa

areas, more and more factories are side. These points are export-driven.” migrating to the interior. According "Chengdu is Down the road, Imbriani expects to forwarders, there is no clear pat- definitely one of the to see more direct international ser- tern of settlement, as provinces and vice to points in China’s interior, but municipalities compete aggressively emerging gateways. for now, the majority of international for business. The decisions are driven air cargo moves by truck through the by investment terms, not by logistics Quite a few high- major gateways. considerations, remarked Bob Imbri- On the China-Europe sector, the ani, vice president of corporate de- tech companies are migration of production to the inte- velopment at freight forwarder Team rior has fueled interest in alternative Worldwide. there. The question modes of transportation, notably rail- In the absence of international air or direct rail service. According links to the new production areas, for carriers is what to Steve Dearnley, chief executive of moving farther away from China’s ma- cargo they can get Schenker Asia-Pacific, his company jor air and ocean gateways puts great- aims to launch a direct rail product er emphasis on the domestic leg in on the import side.” to Germany in the second quarter of the supply chain. Multinationals like this year. DHL Global Forwarding, which has — Charles Kaufmann, DHL Panalpina was the first to start a its own domestic licenses for trucking rail-air service through Urumqi in and airfreight, are poised to gain the Xinjing, a model that has been ad- most from this, while smaller forwarders are also preparing to enter mar- opted by a few others, including DHL ers have to strengthen their ties with kets like Chengdu, he added. GF. He stressed that this is not an Chinese agents, Imbriani said. Having opened a branch in Cheng- alternative to airfreight but rather a He noted that the move to the in- du last year, forwarder Panalpina es- complementary solution more geared terior not only elevates the domestic tablished an office in Chongqing in to other commodities that generate transportation segment but changes February. The airport is preparing for larger volumes. the dynamics of doing business alto- a larger role in cargo. It extended its No such options are viable across gether. Traditionally, many interna- second runway last year to meet the the Pacific, so importers have to tional firms have signed ex-works needs of Hewlett-Packard, which was choose between air-air or truck-air agreements with Chinese manufac- building a cargo terminal and distri- links. In reality, air-air seldom enters turers to maintain control over the bution center on the site. the picture, though, Imbriani noted. logistics. Now it is becoming more “Chengdu is definitely one of the “Transit time has increased,” he advantageous for many to change the emerging gateways. Quite a few high- said. “In some instances, this would terms, whereby the liability rests with tech companies are there,” Kaufmann lead in good economic conditions to the manufacturer until the goods are said. “The question for carriers is people looking at air, but we are still delivered to the client’s designated what cargo they can get on the import in a tight economy.” ACW forwarder in the gateway city. From mostly shorthaul road feeder services, inland transportation has Chengdu Shuangliu Airport shifted to longhaul trucking and airfreight, said Charles Kaufmann, chief executive for North Asia and senior vice-president for airfreight, North Asia Pacific at DHL Global Forward- ing. His company uses either mode to convey goods to Shanghai, Hong Kong or Guangzhou to connect to international flights. “You can truck from Zhengzhou, but you can’t truck from Chengdu or Chongqing,” observed Nick Rhodes, director and general manager of cargo at Cathay Pacific. Cathay is looking at adding destinations to its network in China, and other international carri-

ACW april 2011 15 americas europe Asia middle east africa

Japan earthquake forces cancellations, humanitarian effort still underway

orldwide carriers operat- bringing international supplies and ing in Japan had mostly re- resources to Japan.” Wsumed their normal routings In the hours after the earthquake, a week after a massive earthquake Cathay Pacific diverted or cancelled ripped through the country March 11, five flights that were scheduled to forcing the temporary closure of the arrive in Narita International Air- country’s major airports, according to port. The carrier’s cargo operations Andrew Herdman, the Association of Asia Pacific Airlines were back on track by the morning of director general of the AAPA (AAPA). Soon after, these carriers March 12. American Airlines, which turned their efforts to humanitarian recently announced daily service from workers in the country; Continental aid and other recovery activities. New York JFK to Tokyo Haneda, ini- has more than 1,000 workers in Ja- “Airlines have been focused on tially cancelled all trans-pacific flights. pan, and Boeing has 200 employees. clearing the backlog of disrupted American’s Haneda flights were oper- “Japan is a core part of our global passengers. Domestic flights are ating normally as of March 14, but a network, and we are committed to now operating according to the nor- cargo embargo remained in place on finding ways to help those in need fol- mal schedules,” Andrew Herdman, flights to Tokyo Narita until March 16. lowing last week’s devastating earth- the AAPA’s director general, said in Boeing, UPS, Delta and United quake,” Vinay Dube, Delta’s senior a statement on March 17. “Air cargo Continental Holdings were among the vice president, Asia-Pacific, said in services are operating normally. Sev- many companies that stepped for- the midst of the recovery effort. eral carriers have also been involved ward with aid commitments. The ma- Many carriers and relief organiza- in special humanitarian relief efforts, jority of these organizations employ tions were pursuing humanitarian missions in Japan on top of services that were still being provided to displaced citizens in the Middle East. According to a spokesman from Air Partner, the carrier had arranged more than 60 flights and had evacuat- ed more than 12,000 people from the Middle East during a six-week period starting in early February. “In immediate response to the earthquake and tsunami that devas- You’re risk averse. tated Japan over the weekend, Air Partner continued its humanitarian outreach by organizing the Boeing We like that about you. 747 flight that carried 59 fire service search-and-rescue specialists, two rescue dogs and a medical support You want safe, reliable sources for TL, intermodal, hotshots team along with 11 tonnes of special- and heavy haul, where mistakes can be very, very expensive. ist rescue equipment to the stricken nation,” the spokesman said. So you probably wonʼt think our “safe and legal, every Though air cargo is functioning, the Japanese supply chain has been thor- load, every time” philosophy is overkill. Hey. Some people do. oughly disrupted. Herdman warns that further air delays are possible. “Looking ahead, we can expect some short term disruption to normal patterns of travel demand to and from Japan,” Herdman said. “Airlines will continue to closely monitor the situ- 877.677.5623 www.bouncelogistics.com ation and make appropriate adjust- ments as necessary.” ACW

16 april 2011 ACW

woamericas r ld neuropee w s Asia middle east africa africa middle east asia europe Americas SEKO happy with new equity model

n January, SEKO Worldwide decided to make its employees part owners Iof the firm. This new equity model means that the company’s strategic partners are now able to drive decisions at the top levels of the company. “It changes the whole culture and the whole thought process,” Bill Wascher, SEKO’s president and CEO, said during a break at the AirCargo 2011 conference last month in San Diego. He said the first few months of the new system have gone extremely well. According to Jones Lang LaSalle, Memphis International Airport has used the airport The concept is simple at its heart: city development model to become the hub for FedEx Breaking up the company into smaller pieces, and letting employees own those pieces, will make the company more successful. Wokers are personally Driving airport revenue responsible for how the company fares, making SEKO not an organization full of employees, but one full of owners. from the ground up This way of doing business is commonly seen in the retail sector — one of the biggest examples is irport administrators of- in surrounding areas, too, making a the Publix supermarket chain — but ten overlook some of the city grow around the airport instead it hasn’t really caught hold in the best prospects for driving of the airport simply being added to marketplace at large. revenues and achieving an existing developed region. Competitors see employee ownership cost savings. Great poten- The airport works closely with one as a liability instead of an asset, Atial exists at ground level. or more nearby communities toward Wascher said. He explained that the From attracting quality tenants to goals that serve the area’s overall in- reasons company heads don’t want expanding air cargo opportunities terests. This requires a high level of to give up parts of their empire range to developing open land within and cooperation often among cities and from greed to a need for power. For outside of the airport, the real estate counties that may have previously those simple reasons, he doesn’t see the portfolio is one of the best ways to competed for new development. equity model being echoed throughout optimize airport assets. Many airport cities take on their the industry. The following are some strategies own commercial functions, acting as “It’s a concept that many people to maximize existing ground level as- mini-cities in there own right. They aren’t willing to embrace,” he said. “We sets. The most significant option, and often take on a ripple effect as mar- have more accountability.” also the most time consuming and ket demand emanates outwards from The company’s forward-thinking expensive, is the development of an the airport. Those at the forefront of management style is echoed in other airport city. the air city model have often become parts of the firm. Wascher told Air carrier hubs like Chicago O’Hare and Cargo World that SEKO wants to be Becoming an airport city Dallas/Fort Worth or air cargo hubs on the “cutting edge of technology,” a The “airport city” concept, which such as Louisville (UPS) and Mem- feat he thinks they have achieved. is gaining popularity, also is known phis (FedEx). “We want to be the trendsetters in as the Aerotropolis. The airport city Airport cities can also become the the industry,” he said. “We want to be serves as a hub for business develop- state’s de facto national airport and ahead of the curve.” ACW ment not just on airport property, but serve as a strong economic engine for

18 APRIL 2011 ACW americasAMERICAS E europeurope Asia middle east africa africa middle east asia europe Americas

the region. It is important to note that should not forget the importance of ing development projects. For ex- many airport cities have 15-20 year air cargo terminals and related distri- ample, contributing airport land to a development plans and have a dedi- bution space requirements, too. Many transaction at little or no cost for a set cated Airport City Authority to act as companies desire not only the high time period enhances the private de- a one-stop-shop for target business. visibility — including signage — of veloper’s returns during the first few Airport cities have a defined mis- an airport headquarters, but also ac- years of operation, thereby making sion statement or marketing objective cess to air traffic, major highways and the transaction more attractive. Since of where they want to be, such as “the hotels. public-private agreements typically world’s number one airport” or “the For airports located outside the extend up to 50 or more years, suc- gateway to the world.” metropolis, where land is abundant, cessful developments can provide the attracting corporate industrial devel- airport with solid long-term income Efficiency through third parties opment should be considered. The and justify initial concessions that Third-party suppliers can also be advantages of airport proximity, ac- cost the airport little in out-of-pocket used to reduce costs, streamline op- cess to economic and/or trade zone expenses. erations and increase customer satis- incentives and the potential to struc- faction at airport-run operations such Navigating complexities ture a ground lease (as opposed to as parking and consolidated rental car Unlocking the value of airport port- purchasing the property) are attrac- access areas. In many cases, a private folios can be extremely beneficial. tive prospects to industrial develop- firm works with airport employees The core competency of airports is ers, owners and investors. to help implement best practices, in- clearly aviation, and complex deals cluding customer service, communi- Accessing private capital and processes such as public-private cation and bookkeeping. Employing Public-private partnerships to partnerships can seem daunting. Suc- a private partner has proved to save repurpose and redevelop excess land cessful initiatives often require build- capital in negotiations with suppli- and facilities have been implement- ing a consensus between public and ers, utility companies and contractors ed very successfully at large public- private concerns with differing agen- procured for capital projects. Some sector facilities such as military bases das. However, capitalizing upon these airports are even considering third- and airports with substantial land opportunities to create long-term rev- party management of their entire op- holdings. They provide a win-win situ- enues and cost savings is well worth erations. ation for both airports and private de- the concerted effort and can bring velopers, as they have the potential to fruitful rewards. ACW Maximizing excess space utilize the airport’s tax exempt status, Disused or underused land around decreasing the cost of capital for in- Jones Lang LaSalle’s John airports offers prime development frastructure. Carver and Kurt Little are real opportunities for hotels, retail, res- There are many ways to structure estate experts for ports, airports taurant, offices and gas stations. We these partnerships to assist in fund- and infrastructure.

ATA predicts growth but is wary of rising fuel costs

he Airport Transportation Asso- in February, despite widespread win- dated capacity due to rising fuel pric- ciation of America (ATA) has re- ter storms plaguing airline operations es. A 1 percent reduction will be put Tported that cargo traffic among throughout the country, and reflects into place in May, and a 4 percent re- U.S. airlines rose 5 percent year-over- a strengthening economy and pricing duction is slated for September. The year in January on the strength of environment buoyed by recent fare carrier’s 1.1 percent decrease in com- international traffic. These numbers, hikes attempting to offset rapidly ris- bined consolidated traffic in February when added to the 13 percent year- ing energy prices,” Heimlich said in a and a consolidated capacity decrease over-year passenger revenue increase statement. “As fuel prices remain at of 1.8 percent forced the planned re- experienced in February, signal good or near historically high levels, U.S. ductions. news to John Heimlich, ATA’s vice airlines may experience a more chal- The planned capacity reduction president and chief economist. How- lenging revenue environment.” will be achieved canceling flights in ever, he warns, rising fuel costs could Adding gravity to his words, United certain markets and reducing flight affect future growth. Continental Holdings announced it frequencies. The changes will force “Industry revenue growth persisted has reduced its planned 2011 consoli- a 5 percent decrease of consolidated

ACW APRIL 2011 19 americasAMERICAS Eeuropeurope Asia middle east africa

domestic capacity and a 2 percent plants from its fleet. Airlines, the deal is expected to close international decrease in the fourth One good bit of news in the indus- in the second quarter. quarter. try comes from the shareholders at “This approval is another impor- “The company now expects its full- AirTran Holdings who have approved tant and exciting step toward com- year 2011 consolidated capacity to be AirTran’s merger with Southwest Air- pleting the transaction and beginning roughly flat year-over-year,” United lines. The next hurdle for the compa- the integration of AirTran into South- Continental Holdings said in a state- nies is the U.S. Department of Justice, west to ultimately serve the flying ment. United will also save money on which is reviewing the deal. Accord- public as one carrier,” Kelly said in a fuel by removing less fuel-efficient ing to Gary Kelly, CEO of Southwest statement. ACW

In the news...

During a meeting of the Air Forwarders Asso- classes and possibly, if there is demand, provide Bisignani, director general and CEO of the Inter- ciation (AfA) during the AirCargo 2011 confer- new courses developed specifically for Afa mem- national Air Transportation Association. ence in San Diego, Irvin Varkonyi of American bers, Varkonyi said.… In a two-year contract Liberalization of government policies, a thorough Public University announced an educational with Air Canada Cargo, the Wallenborn review of the master plan at Bogota’s El Dorado partnership with the association. The online Group has agreed to provide road feeder ser- International Airport and an overhaul to the coun- university offers associates degrees, bachelor’s vices (RFS) to more than 40 airports in 14 Eu- try’s air traffic management system would greatly of arts degrees and master’s of arts degrees tar- ropean and Scandinavian countries. According improve the country’s aviation status. By having geteted to working adults. Varkonyi said classes to Air Canada, the carrier went the RFS route in more liberal policies, carriers would be more open are taught by an active instructor and feature order to “optimize total costs, achieve clear and to mergers, which would in turn lead to stronger interaction with classmates, but the courses are transparent cost structures and provide benefits industry growth. Bisignani also said there is room not taught in real time. Varkonyi said the cost of through network leveraging opportunities.” Wal- for a 30 percent increase in capacity if air traffic a bachelor’s degree is about $32,000. “I truly lenborn’s operational structure also adheres to management at the Bogota airport was improved. believe education is essential for advocacy,” Jen- Cargo 2000 and guidelines from the Transported President Santos had previously outlined a four- nifer Frigger-Latham, an AfA board member, told Asset Protection Association… In order for Co- year plan for the industry, calling to increase in- the organization’s members. “If you don’t know lombia to continue to compete in the aviation ternational arrivals from 2.8 million people to 4 what’s at stake, you really can’t create a good sector, Colombian President Juan Manuel Santos million people a year, improve Colombia’s tour- reaction to Washington, D.C. The university has must implement infrastructure improvements ism status and to double the number of domestic partnered with the Afa to tailor logistics industry and government policies, according to Giovanni seats available. These are fine goals, Bisignani said, but more must be done… Mas Air, LAN Cargo’s Mexican affiliate, has added new routes to Brazil, Argentina, Los Angeles and Miami originating in The Global Charter Broker Your wish is our passion Mexico City and Guadalajara. The new services use Boeing 767-300F aircraft... Southwest Airlines Cargo has added services to two South Carolina airports: Greenville/Spartanburg and Charleston... U.S. Customs and Border Protection has given “Anything you have, officials at Hartsfield-Jackson Atlanta Inter- we make the perfect fit.” national Airport the all clear to begin passenger flights to and from Cuba this summer or early fall. These charter flights are restricted to “purpose- ful” travel. The Customs agency also recently announced that Tampa International Airport will serve as another entry point to Cuba. LAX, JFK and MIA are the only other airports that offer flights to Cuba... The U.S. Federal Aviation Administra- tion has signed an agreement with the European Union that, according to a statement, “calls for both sides to research the interoperability of avion- ics, communication protocols and procedures, as well as operational methods under NextGen and www.lhcharter.com its European counterpart, the Single European Sky ATM Research.” ACW

20 APRIL 2011 ACW 13169_Tiger_AZ_114x92_RZ.indd 2 04.03.10 14:47 Uhr complete coverage complete coverage istanbul

World cargo symposium

TSA takes the heat in security session arren Miller, chief of the Trans- portation Security Administra- Wtion’s (TSA) international air cargo branch, took the bullets in an un- comfortable session on security at the IATA World Cargo Symposium. Every other member of a 12-person panel, representing all aspects of the airfreight The BBC’s Aaron Heslehurst chaired a panel during the World Cargo Symposium in Is- industry from forwarding to Customs, tanbul. John Batten of Swissport; Jean-Claude Delen of FIATA; Ram Menen of Emirates criticized the timing and uncompromising SkyCargo; Sergio Mujica of the World Customs Organization; and Christopher Welsh of nature of an Emergency Amendment that the Global Shippers’ Forum participated in the discussion. declassifies known shippers if they change address or fail to ship any cargo over a short period. Carriers serving the U.S. face screening additional shipments as a result. Abel Lopez Cernadas, import/export and E-freight high on transport director for Inditex, claimed TSA demands made his company’s security processes “useless.” The Spanish fashion group agenda in Istanbul replenishes 5,000 stores worldwide twice a week from bonded warehouses and is accredited under Europe’s Authorized Eco- he International Air Trans- The promise to repay companies nomic Operator (AEO) system. port Association (IATA) for contributing their expertise, so FIATA chairman Jean-Claude Delen has pledged to fund the that IATA did not have to rely on the urged regulators to listen before acting, but temporary re-assignment usual faces to lead its initiatives, fol- feared it was “already too late.” Certifica- to the organization of the lowed criticism from Mick Fountain, tion programs must align so that C-TPAT bestT brains from member compa- chairman of the Cargo 2000 quality rules recognized AEO status, or it made no nies in a quest to help IATA drive its monitoring group, who said IATA has sense for European forwarders to push for e-freight and supply chain security “a history of starting and not finishing it. Delen called for the International Civil agenda forward more effectively. things.” Aviation Organization to devise an accept- “If we continue to do things the way An expert panel, assembled for the able solution, a call echoed by Michael we have always done, it should shame opening plenary of the symposium, Steen, the new chairman of The Interna- us. If we fall back on the same old had each been asked to outline four tional Air Cargo Association. statistics that airfreight represents 2 priorities for the industry. Although Miller had little to offer, except that the percent of global trade by volume and they had not talked together before- TSA would listen to the industry’s concerns. 35 percent by value, it should shame hand, there was broad consensus be- He warned that different government de- us,” Des Vertannes, IATA’s global head tween John Batten of Swissport, FIA- mands and legislative policies made a one- of cargo, said during an impassioned TA chairman Jean-Claude Delen, Ram size-fits-all security standard impracticable. closing speech at the World Cargo Menen of Emirates SkyCargo, Sergio Lufthansa Cargo’s security chief, Harald Symposium in Istanbul. Mujica from the World Customs Orga- Zieliniski, said the new TSA requirement Vertannes said an increase to 2.5 nization and Christopher Welsh, rep- was announced at 1 a.m. European time percent by volume, and 38 or 40 per- resenting the UK Freight Transport on a Saturday morning, with a demand that cent by value, would make a big dif- Association and Global Shippers’ Fo- carriers comply within 72 hours. Inside five ference to the industry’s fortunes. He rum (GSF). minutes, he was seeking clarification on the sensed from the event “a real urgency Each panelist identified harmoni- significant changes necessary in Lufthansa’s and willingness to change” and hoped zation of supply chain security and processes, but was unable to reach the TSA IATA could celebrate real progress in promotion of e-commerce as two of until the following Monday. ACW Kuala Lumpur during the 2012 event. the major challenges. They also high-

ACW april 2011 21 istanbul complete coverage complete coverage

World CArgo Symposium World CArgo Symposium lighted the need for better training, people development and communication to improve industry skill levels and lead to the adoption of globally accepted, accredited service quality standards. No one saw emissions or the environment as a major priority. Giovanni Bisignani, IATA director general and CEO, warned in his opening address of the problems posed by Internet-based commerce. This had put power in the hands of individual sellers who were less aware of their responsibilities than professional shippers. They had less expertise in packaging and labeling and did not always know Attendees listen to a panel during the World Cargo Symposium which materials were hazardous. For commercial operators, however, it is clear that electronic documentation regulators are engaged with e-freight, ucts travelled in the bellies of passen- can solve a number of structural remove process barriers and replicate ger aircraft, he continued. problems in the industry. best-practice models adopted by pio- He asked conference delegates, at “We have to ensure we can deliver neering airports such as Amsterdam various stages during the discussion, efficiencies through e-freight,” Airport Schiphol, Incheon Interna- to vote on a number of issues using Vertannes emphasized. He said 44 tional Airport and Singapore Changi keypads at their tables. Revealingly, countries or operating regions were International Airport. there was a wide variation in their e-freight capable by the end of last GACAG is seen as a neutral body views of their economic prospects for year, and he congratulated Cathay that can help harmonize security this year, with 39 percent believing Pacific on being the first carrier to standards worldwide. It also had an their results would be better than in go entirely paperless out of its Hong important promotional role for an in- 2010 and 26 percent fearing a worse Kong hub. ”We’re in pursuit of 100 dustry that undersells itself, said BBC outcome. percent e-air waybills,” he said. Worldwide presenter Aaron Heslehu- Although many attendees saw The Global Air Cargo Advisory rst, as he chaired a debate with the reduced consumer spending as a Group (GACAG), a new cross-indus- expert panel. People were unaware significant problem, a 60 percent try grouping comprising representa- that their mobile phones, electronic majority believed oil prices were the tives of IATA, TIACA, FIATA and GSF, goods, medicines and food were air- biggest threat to the industry’s finan- will set up a task force to make sure freighted and that a lot of these prod- cial prosperity. ACW

Schiphol and Incheon promote e-freight amid industry wariness

record attendance at the World 68 percent of electronic shipments. includes 30 members of the local Cargo Symposium of more Young-Geun Lee, executive vice supply chain community. Athan 1,000 delegates looked on president at Incheon, said the Delta Airlines’ head of cargo, Neel as officials from Schiphol Airport in country aimed to reach 70 percent Shah, said Korean Air Lines and KLM Amsterdam and Korea’s Incheon In- e-waybills by the end of this year had blazed the trail for the SkyTeam ternational signed a memorandum of and total conversion in 2014, a year alliance. Korean had partnered with understanding that commits them to ahead of IATA’s own deadline for full Samsung and LG Electronics, which promoting paperless air cargo trans- implementation. were already operating a paperless portation on one of the world’s major Schiphol, meanwhile, has attracted environment, to help it expand into trade routes. €1.2 million of funding from the Dutch e-freight, while KLM was set to Korea is the world’s leading government for the development of implement e-waybills starting with advocate of e-freight, accounting for an e-freight consortium that now exports from Amsterdam. Delta had

22 april 2011 ACW istanbul complete coverage complete coverage complete coverage complete coverage istanbul

World cargo symposium World cargo symposium

begun electronic transactions on international services in February, and Shah said SkyTeam members were now responsible for more than 20 percent of e-freight shipments worldwide. The rest of the world has shown less enthusiasm. Alan Wright, head of global cargo network development at Swissport International, said the industry was in “collective disarray.” Only 0.3 percent of international shipments — 13,000 per month — were so far paperless. Steve Smith, who is spearheading Enno Osinga of Schiphol Airport signed a memorandum of understanding with Young- DHL Global Forwarding’s e-freight Geun Lee of Incheon Airport at the IATA World Cargo Symposium strategy, said the shipper-to-forwarder and forwarder-to-carrier processes more benefits than the industry ex- presenting e-documents. All-electron- were still highly fragmented, and the pected, but it was not yet delivering. ic customers had later cutoffs, could vision must be end-to-end data trans- Niranjan Navaratnarajah, head of go to the front of the lane and achieve mission rather than removing paper e-freight for Emirates SkyCargo, said faster deliveries, he said. Emirates from freight transactions. He believed the carrier was adding value for small- was now aiming to load its first full e-freight would ultimately bring even er forwarders by fast-tracking those freighter with e-freight. ACW Yes, It’s Real! AIRDEX INTERNATIONAL, INC. AIRDEX INTERNATIONAL, ©

TM Copyright 2011 AIRpallet ...the skid / pallet that cuts weight and costs, dramatically reduces CO2 emissions and fuel burn, eliminates cargo damage and pallet-related injuries, ...and the SAVINGS ARE REAL, TOO! Why Aren’t You Using It?

Call or Click Today! Phone 702.270.6004 [email protected] www.AIRDEX.com

ACW april 2011 23 Import increase leads to cargo growth Inbound demand for airborne imports — long a weak spot in Latin America — has perked up.

hile perishable ex- “In the last year and a half, we added four new flights ports from South [per week] in the Bogota market; this is a result of south- America and Cen- bound revenue instead of outbound revenue,” says Tom tral America remain O’Malley, Miami-based vice president of UPS air cargo op- staples of the region’s erations in Latin America. “In the past, it was flowers that international air car- had been driving the market, and southbound volumes go traffic, imported were backfill, if you will — make the money on the flowers products ranging from northbound, and do as you can on the southbound.” smart phones to medi- Not every corner of Latin America is untouched by the cal gear to drill bits deep recession that began in the United States in late 2007, are coming into the region in bigger volumes on interna- wilting U.S. demand for fresh flowers and Latin American tional flights. That is one reason why many air carriers are exports, including fish, fruit and vegetables. Central Amer- Wadding cargo capacity in Latin America, confident that total ica, for example, may need more time than other parts of freight revenue in the region is headed higher. the region to shake off the spillover effect from economic Latin America has many trade ties to the United States, trouble from the U.S., according to O’Malley. but the region also has demonstrated immunity in recent But the overall regional outlook is optimistic. UPS and years to the problems of the underperforming U.S. econ- other air carriers are preparing to handle more cargo in omy. “It’s probably the first time in the last 50 years when Latin America this year, following a surge in volume in 2010 there was a recession and Latin America didn’t really get from the depressed level of 2009. “We are doing very well affected. Historically, it has been affected pretty severely,” in the Latin America market, both northbound and south- William J. Flynn, chairman and CEO of Atlas Air Worldwide bound,” O’Malley says. “We saw very favorable growth last Holdings, told stock analysts during the company’s Febru- year — 46 percent growth in kilos, year over year, 2010 ary 14 conference call. over 2009. And we’re continuing to see growth in 2011.” Consider why UPS has been increasing its weekly sched- Better balance between Latin America’s inbound and ule of Boeing 757 freighter flights to Bogota, Colombia, the outbound markets is apparent at Miami International Air- capital city of one of the largest flower-producing countries port, the leading U.S. gateway to the region. Imports con- in the world. In a twist, the flower trade hasn’t been the tinue to exceed exports on a tonnage basis, but the gap is primary motive for UPS. The Atlanta-based company has closing. Imported freight outweighed exported freight at increased its schedule to Bogota not just to handle more MIA by only 21,000 tonnes in 2010, versus 166,748 tonnes flower exports, a bedrock business for many cargo carriers in 2006. The Miami airport’s international cargo volume serving Colombia, but mainly to meet increased inbound last year totaled 1.76 million tonnes, nearly matching the demand there for imports. 1.77 million tonnes it handled in 2007 before volume slid

24 APRIL 2011 ACW regionfocus LatinAmerica

Import increase leads to cargo growth

to 1.7 million tonnes in 2008, then stumbled to 1.46 mil- puters and parts to telephone handsets to flat-screen tele- lion in 2009. vision sets. Silva also said medical devices and supplies Latin American currencies have held up well against account for a large share of freight LAN carries into Latin the U.S. dollar, which has boosted inbound flows of air- America. borne imports to the region. “The exchange rates in the Among the most common types of industrial imports region in general — for the Chilean peso, the Brazilian are products for oil exploration and extraction and min- real — that is making the import volume to Latin Amer- ing equipment, particularly for copper mines in Chile and ica very good,” says Claudio Silva, a Miami-based senior Ecuador. executive of LAN Cargo. LAN has increased its cargo-carrying capacity substan- Silva says the Miami-based cargo operation of LAN is tially, taking delivery of three Boeing 767 freighters from seeing “a little bit more balanced situation” between the November 2010 through January, and cargo sales growth freight volumes entering and exiting Latin America. The is expected to follow. “In general, the year has started Chilean carrier still handles plenty of northbound cargo pretty solid. We expect growth between 10 and 20 per- shipments including such perishable commodities as as- cent this year,” Silva says. The addition of the three 767s paragus from Peru, fruit from Chile and fresh flowers from Colombia and Ec- uador. Compared with last year, LAN this year had a “much better” flower-shipping season ahead of Val- entine’s Day in the United States, Silva says. “That had to do with a slight recovery in the North Ameri- can economy.” But LAN freighters also are moving larger southbound volumes. The most common types of imports into Latin America include myriad electronic products ranging from personal com- Officials at LAN Cargo are seeing more balance between Latin American imports and exports

ACW APRIL 2011 25

The one you rely on to the Caspian, Iraq and Afghanistan

Scheduled all-cargo services to Tbilisi, Baku, Yerevan & western Kazakh stan plus to all major airports and bases in Iraq and Afghanistan on one air waybill from anywhere in the world.

USA t: (800) 950 6632 e: [email protected] Gulf t: +971 4299 3922 e: [email protected] Caspian t: +44 (0) 207 605 6860 coyne e: [email protected] airways www.coyneair.com

New Coyne Ad 1 18/03/2011 13:12 to its fleet has allowed LAN to be- and Latin America is direct or indi- gin Miami-based freighter service to rect via airports on the West Coast of “In the past ... several new markets, including the the United States. Three Asia-based southbound volumes passenger-centric Guarluhos airport airlines now fly freighters to Miami, in Sao Paulo, Brazil, which is served where much of the cargo is trans- were backfill, if you by LAN’s affiliated Brazilian cargo air- shipped to Latin America. line, ABSA. “That is the only freighter The average number of freighter will. Make the money in Guarluhos,” Silva says. “They had flights to Miami by Cathay Pacific, only belly capacity in the past.” China Airlines and Korean Air in- on the flowers Another LAN affiliate, Mexican creased from nine per week in 2009 cargo carrier Mas Air, is taking advan- to 19 per week in 2010, says Chris northbound, and do tage of increased export volume from Mangos, marketing director of Miami Mexico to China as well as greater de- International Airport. as you can on the mand in Latin America for Chinese- “What has made a world of dif- southbound.” made products. ference for our Latin carriers are “We have seen good growth of ex- the agreements they have with ports from Mexico into China. ... We the three Asian carriers coming in — Tom O’Malley, UPS bring it to Los Angeles, and then we here,” Mangos says. transfer it to interline partners,” Silva “I think we are making some says. “We are growing, and in terms of headway on volume from Asia to demand for those products.” percentages, a big share of the growth Latin America via MIA,” he says. In Latin America, many freighter will be coming from Mas Air [flights] “Low-volume, high-value technol- operators do business inside larger, from Guadalajara into the Americas ogy goods can viably be transported diversified companies with airlines and from Guadalajara into L.A.” these distances by air [thanks to] the that offer air passenger service, too, Not all air trade between Asia economics of Latin America and the says Alex de Gunten, executive direc-

CONNECTS THE COASTS®

In 3 Days LAX2MIA

Did you know... Sterling Transportation’s 3-day service from LAX-MIA is selected by the Top 7 cargo airlines serving Latin America today 98.7% of the shipments handled by Sterling in 2010 were delivered on-time In 2010 Sterling Transportation delivered over 23,000 shipments, maintaining a claims ratio of less than 0.0002%

LAX Office MIA Office (310) 338-9333 www.SterlingTransportation.com (305) 591-1276

ACW april 2011 27 regionfocus LatinAmerica

tor of the Latin American and Carib- bean Air Transport Association. “In the region, there are very few independent cargo carriers,” he says, citing cross-border competitive pres- sures to merge. “In the freighter world, you have a lot of international competition from the United States and from Europe.” At the same time, however, Latin American carriers generally have re- sisted economic inertia in the United States to an extent that would have been difficult to imagine a generation ago. “Our dependence on the U.S. market is less now that it was 20 years ago,” de Gunten says, “and I think that’s one of the reasons why, in 2009, our correction, or our decrease The flower trade isn’t the primary reason UPS has been increasing activity to Bogota in traffic, was not as bad as in other parts of the world.” Pure passenger airlines serving Mexico among its best-performing in- the passenger and cargo side, they Latin America also are competing for ternational markets during a January have enormous capacity challenges,” a bigger share of the freight market 19 conference call. Gittens says. For example, Brazil, there. For example, Panama-based But Miami International Airport the largest air cargo market in South Copa Airlines is a fast-growing pas- will continue to face challenges to America, is struggling with how to senger carrier that is scooping up its dominance in air trade with Latin substantially increase and improve the more cargo in the region and boosting America. “Within the U.S., you see a country’s airport capacity. “Brazil is its capacity to do so. In early March, lot more lift to Houston, New York, once again grappling with the issue,” Copa Airlines took delivery she says. “We don’t quite know of the first of 10 new Boeing what they’re going to do.” 737-800s. The airline’s cargo In general, “governments in revenues grew to $76.2 mil- Latin America are starting to lion last year from $66.3 mil- face the challenge of keeping lion in 2009. up with capacity and enhancing “We had a pretty good their airports,” she says, “and [fourth] quarter in the cargo they seem to be primarily do- business, and we have seen ing it through concession con- cargo pick up throughout tracts, getting essentially oper- the year,” said Pedro Heli- ators and developers to come in bron, chief executive officer and invest in their airports for of Copa Air Holdings, during stated periods of time.” a February 11 conference A new airport is being built call with stock analysts. “We in Quito, Ecuador. The Tocu- hope that in 2011 we contin- men International Airport in ue to see that strength.” Construction at the Tocumen International Airport Panama City, Panama, is be- American Airlines has ing expanded. But not all Latin increased its schedule of passenger Atlanta, Los Angeles. Miami is still the American governments are improving services in Miami as part of a broader king. But Latin America has been dis- their airports at the same rate. plan to cluster its capacity in South covered by others,” says Angela Git- Among Latin American airport au- Florida and four other U.S. “corner- tens, executive director of Montreal- thorities that recognize the need for stone” markets (New York, Los Ange- based Airports Council International. airside and landside upgrades, Git- les, Chicago and Dallas/Fort Worth). Airports in Latin America also are tens said, “they’ve already started the American’s senior executives high- anxious to attract more freight, but process or are grappling with how to lighted strong results in Brazil and many need better facilities. “Both on undertake a process.” ACW

28 april 2011 ACW SIA CARGO ADDS SAO PAULO IN BRAZIL TO ITS NETWORK SIA Cargo, which manages the bellyhold cargo capacity for Singapore Airlines (SIA Cargo’s parent company), will add a sixth continent to its route network in March. Singapore Airlines will launch thrice-weekly flights between Singapore and Sao Paulo, Brazil, via Barcelona.

Sao Paulo will be Singapore Airlines’ first scheduled South American destination. A dynamic metropolis, Brazil’s largest city is an art and entertainment center as well as an influential player in the areas of regional commerce and finance. It is also an important gateway for both passenger and cargo traffic.

Flights will operate between Barcelona and Sao Paulo’s Guarulhos International Airport. This new service will help boost ties between Singapore and Brazil and pave the way for enhanced trade links between Asia and South America. It will also provide a direct link between Barcelona and Sao Paulo as well as plug Sao Paulo into SIA Cargo’s existing links to 71 cities in 36 countries.

Brcelna

Sing p ulo Sao P

SPECIAL ADVERTISEMENT

011 2 20112011 AirAir CargoCargo ExcellenceExcellence SurveySurvey

Carriers exceed expectations In the next year, Emirates will add two B777 freight- n 2010, carriers experienced a bump after the profit ers and anticipates to be more active in the e-AWB and nosedive seen during the recession. But outstanding e-freight initiatives. airlines in Air Cargo World’s annual Air Cargo Excel- Emirates, like other carriers, will be looking for growth lence Survey note that a full recovery to pre-down- in a number of key markets. “High growth markets are turn levels is far off. This recovery issue is further likely to be India, Latin America, the Pacific Rim, Cambo- Iaugmented by regional discrepancies. dia and Vietnam, among others,” Menen says. “We are also “While global economic conditions are improving and likely to see U.S. exports coming back. China will continue have certainly had a positive impact on global air cargo to grow, though it could be a bit slower than what we have volumes in general, the positive effects have been less seen in the past.” noticeable in the U.S. marketplace,” says Matt Buckley, Numbers from the Airports Council International seem Southwest Airlines’ director of cargo. to prove a turnaround is underway. Regionally, only the Even with uncertain economic circumstances, Emirates SkyCargo, KLM and Southwest successfully received top Airports Council International scores in customer service, performance, value and infor- Freight Summary mation technology from their peers. Oliver Evans of SWISS WorldCargo, which received an REGIONS JAN % YE JAN % overall rating of 116 in its category, is impressed with the 2011 YOY 2011 YOY 2010 rebound, but also is cautious moving forward. INTERNATIONAL FREIGHT “The recovery in volumes of 2010 was remarkable,” he Africa 33.2 19.6 442.7 15.7 says. “We ended the year with record tonnages. However, Asia-Pacifi c 1,502.3 9 18,783.6 20.6 the market is uneven, due to a slowing China (and sea-air) Europe 962.4 11.4 12,320 18.8 market and wild fluctuations in currency exchange rates.” Ram Menen of Emirates concurs with this assessment. Latin America/ Caribbean 125.3 -2.1 1,819.9 20 “Like any other industry,” he says, “we are not immune to Middle East 281.9 -0.1 3,659.2 11.6 the impact of challenging economic conditions. We wit- North America 496.8 7.5 6,490.2 22.9 nessed a significant downturn in exports from Asia to Eu- ACI TOTAL 3,401.8 8.3 43,515.7 19.6 rope and the United States from October last year, and the DOMESTIC FREIGHT expected recovery after the Chinese New Year has yet to Africa 2.5 0.6 33.2 5.4 really kick in.” These carriers made the best out of a challenging envi- Asia-Pacifi c 635.4 12.2 7,054 8.6 ronment, but to keep up the good work in the coming year, Europe 36.9 3.6 515.8 4.7 they will have to overcome new challenges. Officials at each Latin America/ Caribbean 70.1 16 915 5.6 airline will be keeping their eyes on the skyrocketing cost of Middle East N/A N/A N/A N/A fuel. Security and the impact of the Transportation Security North America 938 -0.8 12,296.2 7.6 Administration’s new all-cargo screening deadline for U.S.- ACI TOTAL 1,682.9 4.5 20,814.1 7.8 bound goods is another storyline carriers will be watching this year. TOTAL FREIGHT Representatives from these airlines all have grand plans Africa 39.8 16.3 525.6 12.4 for this year and next aimed at enhancing security and Asia-Pacifi c 2,137.7 9.5 25,947 17 increasing profitability. Southwest plans to add 20 737- Europe 999.5 11.1 12,837.2 18.2 800s in early 2012 and is currently looking to complete its Latin America/ Caribbean 196.4 3.7 2,748.1 14.7 acquisition of AirTran Airways. SWISS is emphasizing its Middle East 282 -0.1 3,660.5 11.6 “relay” program to promote the importance of teamwork, efficiency and customer service; it has also created task North America 1,480.8 2.2 19,388.8 12.4 forces to explore security issues and e-freight. The carrier ACI TOTAL 5,136.2 6.8 65,107.3 15.4 will add services to Bejing this summer. Data in 000s metric tonnes

30 april 2011 ACW featurefocus ACE Awards

Latin American/Caribbean market and the North American tion. Increased FedEx activity will help this number im- market experienced decreases in international freight year- prove (the integrator signed an agreement with the airport over-year from January 2010 to January 2011. Domestical- through 2015). Officials at OAK are focusing on recruit- ly, only the North American region failed to see an increase ment in Asia and South and Latin America this year, and over its January 2010 total. they also are looking to two new routes into Mexico operated by Volaris. Airports look to continued growth “OAK anticipates that air cargo volumes will grow 2 percent in 2011 over the previous year. A significant concern his year, Oakland International Airport, Singa- for OAK is the impact of higher fuel prices on all its car- pore Changi Airport, Cologne Bonn Airport and riers, including cargo,” says Deborah Ale Flint, director Amsterdam Schiphol Airport received top scores of aviation at the Port of Oakland. “With FedEx’s growing in the airport section of the survey. Each organi- fleet of long-range 777s, OAK is optimistic that these new zation experienced significant growth last year, aircraft will result in a significant boost to its international Tand all of them are adding new projects and additional cargo traffic, particularly to Asia.” routings in 2011. Last year was a recovery year for Singapore Changi, In Cologne, Torsten Wefers, senior manager, busi- though officials at the airport admit they aren’t out of the ness development, attributes his airport’s high rating to woods yet. a 77 percent growth in annual cargo activities last year; “While intra-Asia trade flows have bettered pre-crisis in addition, Cologne Bonn received new customers like levels, we are still susceptible to developments in the key Egypt Air Cargo and DB Schenker. FedEx also opened a cargo markets of U.S. and Europe,” says Albert Lim, the 50,000-square-meter cargo hub at the airport. airport’s division head for cargo and logistics. “Airfreight “We anticipate further strong growth for 2011,” Wefers growth anticipated in North Asia will have a positive spinoff says. “FedEx and UPS predict strong growth figures, and on the rest of Asia and Southeast Asia including Singapore.” we also expect to enter into business with some of the ma- Major concerns of the airports mirror concerns felt jor general cargo operators.” throughout the carrier community, such as the price of oil Volumes at Oakland International Airport (OAK) in- and security issues. ACW creased 4 percent last year, mostly on domestic cargo ac- Carriers Customer Performance Value Information Overall Customer Performance Value Information Overall Service Technology Service Technology

800,000 or more tonnes 200,000 to 799,999 tonnes Emirates Sky Cargo 114 114 115 116 115 KLM 106 108 101 110 107 Singapore Airlines 114 114 112 112 113 Qatar Airways 107 103 108 107 106 Lufthansa 108 110 103 112 109 Nippon Cargo 111 109 98 106 106 Airlines Cathay Pacific 105 105 104 105 104 Korean Air 103 103 102 103 103 Cargolux 107 110 104 100 105 FedEx Express 102 104 95 109 103 Thai Airways 106 108 104 99 104 China Airlines 98 98 103 93 98 EVA Air Cargo 106 104 103 104 104 DHL 98 94 97 101 97 Asiana Airlines 103 104 109 101 104 Japan Airlines 100 97 93 97 97 Malaysia Airlines 103 103 105 103 104 United Airlines 96 96 97 97 97 All Nippon Airways 102 102 105 104 104 UPS Air Cargo 95 93 94 101 96 Etihad Airways 101 101 104 103 102 Air China 94 95 103 89 95 American Airlines 98 99 101 104 100 China Eastern 87 90 94 83 88 E.A.T European Air Transport 102 99 101 98 100 China Southern 86 86 89 82 86 Airlines British Airways 102 99 98 103 100 Qantas 99 100 97 103 100

ACW april 2011 31 featurefocus ACE Awards

ACE SURVEY CRITERIA FOR CARRIERS Customer Service Performance Value Information Technology Claims handled with expedience; Fulfills promises and contractual Competitive rates; rates Tracking and tracing of shipments; problems solved in a prompt and agreements; dependable; commensurate with service level Internet; electronic commerce courteous manner; professional and accomplishes scheduled transit you require; value-added programs capabilities knowledgeable sales force times

The ACW 2011 ACE Survey asked freight forwarders to evaluate carriers by rating four measures on a scale of one as the lowest to five as the highest. For each measure, the average rating across all companies in the survey was calculated and set to a value of 100. This year, we’ve broken down the results by annual tonnage carried.

Customer Performance Value Information Overall Customer Performance Value Information Overall Service Technology Service Technology

Air France 99 98 98 104 100 Jet Airways 101 99 102 102 101 LAN Cargo 97 96 96 97 96 Alaska Airlines 103 101 102 96 101 Turkish Airlines 96 98 95 92 95 Kingfisher Airlines 99 101 100 102 101 China Cargo Airlines 93 93 97 96 95 BAX Forwarder 102 96 95 102 99 Network Delta Cargo 93 94 96 93 94 Amerijet TNT Airways 86 90 90 91 89 96 100 97 97 98 International Saudi Arabian 84 83 89 80 84 Air Canada 92 96 100 101 97 Airlines Iberia 96 92 100 97 96 Up to 199,999 tonnes Pacific Air Cargo 92 103 97 91 96 Southwest Airlines 121 127 122 107 119 South African 99 94 92 91 94 Swiss WorldCargo 118 117 111 118 116 Airways Dragonair 115 109 112 108 111 Royal Jordanian 93 94 93 94 93 Airlines Virgin Atlantic 111 112 106 114 111 Cargoitalia 91 92 91 97 93 Polar Air Cargo 103 106 106 106 105 Gulf Air 90 91 92 98 93 Volga-Dnepr Airlines 114 98 101 103 104 Kalitta Air 92 93 91 89 91 Air New Zealand 107 104 99 105 104 AirBridge Cargo 95 95 95 79 91 Continental Airlines 103 102 102 104 103 Kuwait Airways 84 89 92 94 90 US Airways 97 102 106 103 102 Vietnam Airlines 90 86 86 92 89 Finnair 96 102 105 101 101 Air India 86 86 87 89 87

Airports

Regulatory Regulatory Performance Value Facilities Operations Overall Performance Value Facilities Operations Overall

North America — 1,000,000 or more tonnes North America — 400,000 to 999,999 tonnes Memphis (MEM) 111 113 105 109 109 Oakland (OAK) 117 117 112 119 116 Louisville (SDF) 109 114 110 104 109 Indianapolis (IND) 113 113 112 113 113 Anchorage (ANC) 109 107 109 110 109 San Francisco (SFO) 106 108 105 107 106 Los Angeles (LAX) 99 96 96 99 98 Toronto (YYZ) 99 98 102 101 100 New York (JFK) 93 91 93 94 93 Dallas/ 99 99 99 99 99 Chicago (ORD) 91 91 94 92 92 Ft. Worth (DFW) Miami (MIA) 88 88 92 91 90 Atlanta (ATL) 90 91 95 86 91

32 april 2011 ACW featurefocus ACE Awards

ACE SURVEY CRITERIA FOR AIRPORTS

Performance Value Facilities Regulatory Operations Fulfills promises and contractual Competitive rates; rates Apron, warehousing, perishables Customs, security, FTZ agreements; dependable, prompt commensurate with service level center; access to highways and and courteous customer service; you require; value-added programs other modes of transportation allied services — ground handling, trucking etc.

The ACW 2011 ACE Survey asked representatives from airlines to evaluate airports worldwide by rating four measures on a scale of one as the lowest to five as the highest. For each measure, the average rating across all companies in the survey was calculated and set to a value of 100.

Regulatory Regulatory Performance Value Facilities Operations Overall Performance Value Facilities Operations Overall

Newark (EWR) 89 87 87 90 88 London Heathrow (LHR) 102 101 98 102 101 Philadelphia (PHL) 87 87 88 86 87 Paris North America — 200,000 to 399,999 tonnes De Gaulle (CDG) 95 95 98 95 96 Denver (DEN) 107 103 114 108 108 Europe — 300,000 to 999,999 tonnes Honolulu (HNL) 109 107 111 105 108 Cologne/Bonn (CGN) 117 119 120 120 119 Phoenix (PHX) 102 104 106 104 104 Leipzig (LEJ) 118 121 119 118 119 Houston (IAH) 100 102 106 99 102 Luxembourg (LUX) 113 116 119 116 116 Washington 93 89 101 95 95 Dulles (IAD) Copenhagen (CPH) 103 99 99 101 100 Liege (LGG) 104 103 97 95 100 Seattle/ 95 93 89 96 93 Tacoma (SEA) Madrid (MAD) 95 94 91 99 95 Ontario, CA (ONT) 91 90 76 89 87 Brussels (BRU) 95 89 94 92 93 Boston (BOS) 82 85 84 84 84 Milan (MXP) 82 86 83 82 83 Istanbul (IST) 74 72 78 77 75 North America — 100,000 to 199,999 tonnes Orlando (MCO) 118 115 116 116 116 Europe — 100,000 - 299,999 tonnes Calgary (YYC) 112 119 116 112 115 Frankfurt Hahn (HHN) 115 118 117 121 118 Rockford (RFD) 111 117 116 111 114 London Stansted (STN) 117 109 119 118 116 Hartford (BDL) 104 107 108 104 106 Zurich (ZRH) 107 114 120 118 114 San Diego (SAN) 115 103 91 107 104 Athens (ATH) 112 112 110 112 111 Baltimore (BWI) 102 103 98 97 100 Munich (MUC) 107 112 107 109 109 St. Louis (STL) 104 95 100 100 99 Manchester (MAN) 94 100 112 115 105 Cincinnati (CVG) 96 99 100 97 98 Vienna (VIE) 98 109 104 102 103 Vancouver (YVR) 92 98 93 90 93 Lyon Detroit (DTW) 86 82 104 91 91 St. Exupery (LYS) 94 105 101 103 101 Minneapolis/ Rome (FCO) 88 96 87 94 91 St. Paul (MSP) 91 91 90 87 90 Moscow- San Antonio (SAT) 83 91 83 80 84 Sheremetyev (SVO) 75 73 69 67 71

Europe — 1,000,000 or more tonnes Latin America — 200,000 or more tonnes Amsterdam (AMS) 103 103 103 104 103 Santiago (SCL) 115 113 118 115 115 Frankfurt (FRA) 100 101 102 100 101 Lima (LIM) 100 104 104 102 102 Bogota (BOG) 94 96 96 95 95

34 april 2011 ACW Regulatory Performance Value Facilities Operations Overall

Sao Paolo (GRU) 94 93 94 94 94 Mexico City (MEX) 97 94 89 94 94

Latin America — 100,000 to 199,999 tonnes Campinas (VCP) 106 108 103 109 106 Buenos Aires (EZE) 104 105 106 102 104 Rio de Janeiro (GIG) 103 100 106 98 102 Quito (UIO) 96 96 94 95 95 Manaus (MAO) 90 91 91 96 92

Asia — 1,000,000 or more tonnes Singapore (SIN) 112 110 112 112 111 Southwest Airlines, which earned top honors in its category, takes off from award-winner Denver International Airport Incheon (ICN) 107 112 107 110 109

Taipei (TPE) 105 107 101 105 105 Regulatory Performance Value Facilities Operations Overall Hong Kong (HKG) 105 103 105 104 104 Tokyo-Narita (NRT) 101 91 100 99 98 Abu Dhabi (AUH) 109 115 114 114 113 Bangkok (BKK) 93 96 96 93 94 Doha (DOH) 111 105 109 108 108 Shanghai- 92 95 95 93 94 Bahrain (BAH) 103 107 106 108 106 Pudong (PVG) Madras (MAA) 93 90 103 107 98 Beijing (PEK) 86 85 85 83 85 Sharjah (SHJ) 98 99 95 95 97

Asia — 300,000 to 999,999 tonnes Mumbai (BOM) 86 89 77 77 82 Osaka (KIX) 110 105 115 111 110 New Delhi (DEL) 82 81 77 77 79 Kuala Lumpur (KUL) 107 114 111 108 110 Middle East, Africa — 100,000 to 299,999 tonnes Shanghai- Tel-Aviv (TLV) 111 114 105 110 110 Honqiao (SHA) 98 105 104 105 103 Jeddah (JED) 100 108 105 100 103 Guangzhou (CAN) 104 103 108 98 103 Riyadh (RUH) 103 98 105 104 103 Shenzhen (SZX) 93 93 98 104 97 Kuwait (KWI) 98 101 104 99 100 Jakarta (CGK) 96 89 91 91 92 Johannesburg (JNB) 96 98 103 98 99 Middle East — 300,000 or more tonnes Cairo (CAI) 99 98 91 98 96 Dubai (DXB) 117 115 120 113 116 Nairobi (NBO) 94 84 86 92 89

ACW april 2011 35 Humanitarian Aid featurefocus

Planning for a crisis

Air Partner chartered an AN 225, the largest aircraft in the world, to fly supplies to Japan

hen an earthquake services to help aid efforts. s h o o k J a p a n l a s t “When humanitarian relief organizations call for assis- month, creating a hu- tance, we work to make our networks available though manitarian crisis, the in-kind giving and by offering discounted transportation,” air cargo industry leapt Chappelle says. into action, arranging Jock Menzies, president of the American Logistics Aid flights charters to fly in Network, does his part to help by grouping these networks supplies. In the Middle together in a central, online location. The network func- East, political protests tions as a matchmaker between non-government orga- and the resultant government backlash has created a con- nizations who have a list of needs and carriers who have stant need for humanitarian aid throughout the region. space for cargo. WLast year, the air cargo community played a huge part in In developing the network, Menzies has learned that the outflow of humanitarian aid work to numerous disas- relationships are paramount. He cultivates these by at- ters from the Haitian earthquake to the saga of the trapped tending industry conferences and generally getting his Chilean miners to floods in Pakistan. name out there. The life-saving work companies pursue in the midst of “Companies, if they’re aware that there’s a particular tragedy happens very quickly, but how do carriers and sup- need that fits a sweet spot that they have, are often very pliers plan for each big disaster while still paying attention glad to respond,” he says. “What we have found, time and to the smaller, day-to-day humanitarian issues? again, is that if you point companies and individuals to an UPS prepares for these disasters, says the company’s opportunity to make a contribution that’s within their ca- Chip Chappelle, by coordinating with the American Red pacity, they’re often very glad to do it.” Cross, CARE and other non-profit organizations dedicated Menzies adds that organizations are glad to help when to humanitarian aid. UPS helps aid organizations prepare faced with a specific problem; it’s much harder to keep by pre-positioning goods in strategic locations and helping companies interested in humanitarian projects if there develop supply-chain tools. In times of immediate need, isn’t a pressing issue at hand. UPS, along with TNT and Agility Logistics, jumps into the “When you have something that’s episodic, like disaster, fray as part of the United Nations’ Logistics Emergency it’s very hard to keep people engaged,” Menzies says. Team. The companies provide skilled volunteers and other Another problem that arises when companies attempt

36 april 2011 ACW AIR CARGO WORLD_ EXPERTISE GB • SP PP • 203 x 276 mm _ Remise le 10/03/2011_Parution du 31/03/2011 ILG_ BAT

MORTEN JAKOBSEN COMMERCIAL MANAGER AIR FRANCE-KLM CARGO AND MARTINAIR CARGO JOHAN OLSEN In charge of the smooth and safe transfer of this shipment in compliance with any requirement. FORWARDER ACTING AS AGENT FOR COMPONENTS INDUSTRIES

Responsible for ﬁ nding the best transport solutions for this type of cargo.

ERIK HANSEN TECHNICAL DIRECTOR COMPONENTS INDUSTRIES

Would like to have his cargo transported without having to dismantle the pieces.

OUR JOB IS FIRST TO UNDERSTAND YOURS

We understand your specific requirements so we can find the best solutions. When you choose Air France-KLM Cargo and Martinair Cargo as your partner, you are not just choosing an airfreight company. You are also making the most of the industrial expertise of our staff. They understand the specific requirements involved in transporting anything from high tech, industrial equipment, pharmaceuticals, fashion and automotive, to perishables, valuables, mail and live animals. Furthermore, thanks to our 160 offices across 5 continents, our representatives are able to understand and to respect the cultural and linguistic aspects of your business. No matter what you need to transport, we have a team with the capacity to find the right solution to fit your transportation needs.

THE CAPACITY TO SERVE YOU

www.afklcargo.com www.martinaircargo.com

AIRF_1102046_EXPERTISE_203x276.indd 1 9/03/11 14:53:49 featurefocus Humanitarian Aid

Maximus Air Cargo prepares for crises by constantly talking with humanitarian organizations about their needs to pre-plan is the uniqueness of every the Federal Aviation Authority Reau- compensation.” disaster. This is where relatioships thorization Bill. This could even be a year-round play a special part becaus when aid “In essence, it is extending the thing that doesn’t hinge on disaster organizations are scrambling to find Good Samaritan act to aircraft and relief, she says. “The supply is out available cargo space, they look to the personnel that are related in a disas- there. The demand is definitely out specific carriers they’ve worked with ter response time frame and also for there. Any time you have a trip from in the past. every day air charity flying,” she says. the United States to a third-world “While [aid organizations] have a “We’re trying to incorporate language country, you can find materials that kit that they know they’ll need, there that is both for disaster response and need to go and you can find demand are always surprises because the then the verbage that would protect on the other side for those goods.” events are not cookie-cutter events,” everyday flying for Angel Flight, Mer- For Fathi Buhazza, CEO of Maxi- he says. cy Medical, Pilots for Patients — all mus Air Cargo, air is really the only One of the partners that works the everyday charities.” way for aid. “When there is a disaster, closely with Menzies’ network is She’s equally as passionate about the word urgency comes next. And AERObridge, which uses donated pri- finding advance capacity that will be the quickest way to transport aid is by vate aircraft to ship supplies and per- available when disaster strikes. Ste- air,” he says. sonnel to disaster areas. venson explains that some carriers of- Maximus prepares itself to help in Stevenson’s preparations involve fer a reduced rate to aid organizations humanitarian efforts by keeping open creating relationships, setting up hoping to send air cargo, but that this lines of communication with humani- staging areas at different points in rate might still be prohibitive. tarian agencies. According to Buhaz- the U.S. in order to increase response “What we would really like to see za, the carrier also has “a continuous time during a disaster and lobbying the air cargo world do is if they have monitor on aircraft availability, so Congress, which is just as important a pallet of space available, source it when the requirement comes, if we as her other work. Stevenson’s big- to a number of sources,” she says. cannot source our aircraft, we source gest project this year has been li- “Offer it for free, and get a 501(c)(3) other operators in the area.” ability protection legislation that the tax deductible letter for it — there- Once a catastrophic event occurs, group was trying to get attached to by they are receiving some sort of even with all the planning in the

38 april 2011 ACW “The supply is out could, and frequently do, come into gets after helping others, he says. play such as congested airports, dam- “In business terms, flying there. The demand is age to road and airport infrastruc- humanitarian aid is no different to tures, telecommunications break- flying any other cargo,” Chalmers definitely out there. downs, flight permit and/or over flight says. “However, due to the needy restrictions, increasingly scarce air- reasons for such flights it is incredibly Any time you have a craft capacity, strikes and fuel short- rewarding to organize them as trip from the United ages,” he says. quickly as possible when you know Chappelle adds that volunteers it will make a difference to those in States to a third- need to be able to quickly asses the distress.” ACW demands that are unique to each situ- world country, you ation. With most disasters, immediate needs — cargo, transportation of can find materials displaced individuals, etc. — aren’t that need to go and fully formed, and workers have to be REQUEST FOR PROPOSAL able to weigh their options. Capacity Proposal Number: you can find demand in these situations is limited, so UPS 11-10-11105 has to see how to best use its space. on the other side for Another challenge is the simple management of the supply chain and AIR CARGO STUDY AND those goods.” making sure the right cargo arrives at CONSULTANT SERVICES the right place at the right time. for the — Marianne Stevenson “All components of the supply JACKSONVILLE AVIATION AERObridge chain … must be well orchestrated AUTHORITY to ensure supplies reach the required destinations as needed without over- world, logistical wrangling is still an whelming the receivers’ capability to Proposals will be received by the uphill battle. Clive Chalmers, UK- handle as they work to distribute on Jacksonville Aviation Authority based Air Partner’s freight manager, the ground,” Chapelle says. (JAA) until 2:00 PM (local time), points to arranging the best aircraft Chalmers says Air Partner ap- on May 23, 2011, at which time quickly and at the right price as an proaches transporting humanitarian they will be opened at the JAA Administration Building, initial concern, but once on foreign aid in the same way as shipping elec- 14201 Pecan Park Road South, ground, a laundry list of challenges tronics or car parts. The only differ- Jacksonville, FL, for a company can occur. ences are the quick turnaround time to provide a Air Cargo Study and “A range of problematic factors and the sense of accomplishment one Consultant Services.

A Pre-Proposal Meeting will be held at 10:00 AM (local time), May 9, 2011, at the JAA Administration Building, 14201 Pecan Park Road South, Jacksonville, FL 32218.

All Proposals must be submitted in accordance with Request For Proposal Number 11-10-11105, which may be obtained after 8:30 AM (local time) on April 4, 2011 from:

Jacksonville Aviation Authority Procurement Department 14201 Pecan Park Rd South, Floor 2 Jacksonville, FL 32218 (904) 741-3571

UPS workers help pre-position relief supplies in anticipation of hurricane season

ACW april 2011 39 peopleevents

Airlines ings will be responsible for Air France short-term basis. Jansson previously Emirates SkyCargo has named — KLM Cargo, and Varwijk will con- worked as CFO and deputy CEO of Achim van der Graaff cargo man- tinue his duties as executive vice pres- Assa Abloy. ager — Netherlands. The 30-year in- ident, commercial passenger business. Renate Bechthold has retired as dustry veteran joined Emirates from Sander van Woesik has begun manager, press and promotions, at Cathay Pacific, where he was cargo work as regional sales director, Eu- Cargolux after 36 years. manager. rope, at Saudi Airlines Cargo Com- Jenny Dervin is the new vice pany’s European hub in Brussels. He Third Parties president of corporate communica- has worked in the cargo industry for SDV recently hired Marc de la tions at JetBlue Airways. Dervin more than 20 years, holding positions Breteque as business development has held communications positions at at Polar Cargo, AirBridgeCargo and director, China/Hong Kong; Steven TWA and Delta Air Lines. KLM Cargo. Emanuel as vice president, sales and Etihad Airways appointed Juli- Andrew Smith, managing direc- marketing, USA; Geert de Wilde as ana Kfouri as se- tor and founder of Avient, has taken business development director, the nior vice president on the role of group chairman. The Benelux zone; and Jerome le Grand of corporate strat- company has also as aerospace product director. egy and special promoted Simon Scott Fisher, executive vice presi- projects. She pre- Clarke from COO dent and COO of Estes Forwarding viously held vari- to CEO. The two Worldwide, has been promoted to ous jobs at TAM plan on expanding president and CEO. Fisher, the com- Linhas Aereas Avient’s African op- pany’s founder, previously worked at Kfouri S.A. The airline erations, expand- Lakeville Motor Express as the vice also has named ing the company’s president of sales and marketing. Clarke Kevin Knight its fleet and adding Paul Gallagher has been pro- chief strategy and new routes. Smith started the compa- moted to Damco’s CEO for the UK and planning officer. ny in 1993, and Clarke joined in 2007. Ireland from his previous position as His responsibili- Kate Gutmann has joined UPS managing director of Damco Sea and ties include lead- as president of worldwide sales. She Air. The 30-year industry veteran has ing Etihad Crystal most recently served as the compa- worked for US Lines, Royal Nedlloyd Cargo, among oth- ny’s president of enterprise sales for and A.P. Moller — Maresk. Knight er duties. Qutiaba the retail, professional services and Swissport has hired Nicolas Zahde, who previ- government sectors. The company Frochaux as vice president, corpo- ously worked for also has appointed rate controlling and financial analy- Swiss Interna- Scott Wicker, for- sis. Frochaux most recently worked tional Air Lines mer vice president as CFO at Cham Paper Group. Bernd and Kuwait Air- of corporate plant Maresch of HANS MARS has taken lines, has taken engineering, to the over all of Swissports’ marketing and over as Etihad’s new job of chief communications activities. country manager Boven sustainability of- Raphael Hung is the new manag- in Kuwait. Geert ficer. He will focus ing director of air freight and regional Wicker Boven is the carrier’s new senior vice on developing sus- director of South Asia at Trans Glob- president Americas. tainable business practices, introduc- al Logistics. Hung, a 25-year veteran, Roger Crook has joined the board ing environmentally friendly products came to Trans Global from Sunlink of management at Deutsche Post to customers and promoting employee Logistics, where he was managing AG where he will oversee DHL Global volunteerism. director. He also worked at GeoLogis- Forwarding, Freight. Crook previously Lufthansa Cargo has named J. tics and Agility. oversaw DHL Express Asia Pacific, Florian Pfaff as vice president, area The cargo division of IBS Group, Eastern Europe, Middle East and Africa. management, Germany; Carsten a technology provider to the air cargo KLM Royal Dutch Airlines Wirths will take over Pfaff’s previous industry, has named Murray Kidd has selected Camiel Eurlings and role as vice president, area manage- vice president and head of sales. Erik Varwijk to serve on the compa- ment, Europe and Africa. Matt Plose has joined UBM Avia- ny’s statutory managing board. Eurl- SAS Cargo has named Goran tion as CFO. Plose previously worked ings and Varwijk join Peter Hartman, Jansson CFO and deputy president. at TSL Education as director and KLM’s CEO and president, and the He replaces Mats Lonnqvist, who also spent seven years in various posi- carrier’s CFO, Frederic Gagey. Eurl- was hired in December 2008 on a tions at UBM.

40 april 2011 ACW Associations Maunu von Lueders is the In- events Georgia Logistics Summit at the Cobb ternational Air Transport Associa- Energy Performing Arts Centre and tion’s new regional vice president for the Cobb Galleria Centre. Officials April 4-6 expect more than 1,500 industry par- Dubai: The Afghanistan Air Cargo Asia-Pacific. He has worked atJetLite ticipants to attend. This year’s theme & Logistics Conference, held at the and Nordic Airlink/FlyNordic as is “Thriving in a Changing Ecosys- Jumeirah Emirates Towers Hotel, will CEO, and he has served at oneworld tem,” and the agribusiness, airfreight, explore the latest industry trends and energy, life sciences, manufacturing global alliance. investment opportunities. Speakers and ocean freight industries will all Christopher Brown has been include Tony Bauckham of Air Char- be discussed. To register, visit http:// ter Service, Peter Donlevy of East named vice president of legisla- summit.georgialogistics.org. tive and regulatory policy at the Air Horizon Airlines, and Said Mehdi Saidi and Azat Mulgimov from Af- Transport Association of America. ghanistan’s transportation ministry. MAY 10-13 The 15-year industry veteran will Session topics range from defense Munich: The 2011 version of Messe reach out to stakeholders in order to and military operations to humani- Munchen GmbH’s Exhibition and advance policy and legislative issues. tarian relief. To register, visit www. Conference for the Air Cargo Indus- try will be held in the New Munich Brown previously worked at Manatt, euroavia.com/afghanistan/register. html. Trade Fair Centre. This is the fifth Phelps & Phillips where he worked edition of the event, which is being with United Airlines on regulatory May 1-3 held in conjunction with a logistics issues. He has also spent time at the Phoenix: The 2011 CNS Partnership exhibition. According to a press re- Federal Aviation Administration. Conference, held at Phoenix’s Horse lease, 1,764 exhibitors attended Pass Resort, will feature an array of the conference last year, and offi- industry veterans speaking about top- cials expect 48,000 visitors in 2011. Manufacturers ics including emerging markets, new For information, visit www.messe- Four vice presidents have joined technologies and security. To register, muenchen.de/de/Home. Airbus Americas in the past six visit www.cnsc.net/events/Pages/201 months. Laurent Tremeau is the 1CNSPartnershipConference.aspx. June 21-23 company’s new vice president, finance; Atlanta: The eyefortransport group will hold its ninth anuual 3PL Sum- Robert Geckle is the new vice presi- May 1-4 Kuala Lumpur: IATA’s IGHC and mit and its second-ever Chief Sup- dent, general counsel and chief com- Airline Ground Operations Meeting ply Chain Officer Forum at Atlanta’s pliance officer; Linda Herbert is now will bring together airlines, airports, Hilton Hotel. For information on the vice president of human resources and and ground service providers to talk 3PL Summit, visit www.3plsummit. administration; and David Williams about security, anti-trust guidelines com. To learn more abotu the Supply Chief Supply Chain Officer Forum, is the new vice president, procurement. and other relevant issues. A workshop concerning the IATA Standard visit www.CSCOforum.com. Jack Jones has been named vice Ground Handling Agreement and the president and general manager of Boe- use of the Service Level Agreement November 19-20 ing South Carolina. He will oversee will be held May 5 to 7. For more London: Project Cargo Network will the division’s operations, which cur- information, visit www.iata.org/ hold its inaugural summit at the Park rently includes work on the Boeing events/Pages/ighc-ago.aspx. Plaza Riverbank Hotel. The two-day conference will include pre-arranged 787 Dreamliner. Jones replaces Tim May 9-10 business meetings and a workshop Coyle, who now leads operations at Atlanta: The Center of Innovation session. For more information, visit the company’s Aviation Technical Ser- for Logistics will hold its third annual www.projectcargonetwork.com. vices facility. ACW

ADVERTISER INDEX

Air Charter Services...... 2 CH Robinson...... 47 Singapore Airlines...... 29

Airdex...... 23 Coyne Aviation ...... 26 Skyteam...... 13

Air France/KLM...... 37 EVA Air Cargo ...... 17 Sterling Transportation...... 27

American Airlines...... 48 Fujairah Airport ...... 8 Thai Airways International...... 7

Bounce Logistics...... 16 Jacksonville Aviation Authority ...... 39 Vienna Airport ...... 5

Cargoitalia...... 35 Lufthansa Cargo Charter...... 20

Changi Airport Group...... 10 Macau International Airport ...... 33

ACW april 2011 41 aircargoClassifieds Air freight business Opportunities

Distribution By Air, Inc. A DBA Distribution Services Inc Company Control Your Future - Join Our Team !! Many opportunities available Imagine becoming a member of a true domestic and global network of ofﬁ ces and agents that can allow you to expand your business and increase your proﬁ ts, while maintaining a true independence that only a few can enjoy!

No Franchising Fees Corporate Support and Training Turn Key Start up Advanced Web Applications Unlimited Income Potential Electronic Data Interchange (EDI) Weekly Settlement National & Global Carrier Contracts Online / Centralized Accounting Global Agency Network

Call 800-272-1379 Ext 226 Visit us at www.dbaco.com or contact Alan Brown at [email protected] At DBA we provide the opportunity… You deliver the dream!!!

r e p r i n t s

When your company is featured in Air Cargo World, order reprints to promote your products elegantly and inexpensively. Use them to target your market and strenghten your corporate identity among existing and potential clients. Our high quality reproductions, printed on glossy paper, are available in black and white or color. For more information and pricing, contact:

Pam Latty (678) 775-3565

42 APRIL 2011 ACW aircargoClassifieds Air freight business Opportunities

Success through opportunity Agency Ownership EXPRESS AIR FREIGHT MCI - PIT - BDL - MSY - OKC - TUL - MKE - STL - BOS - BWI - DFW - DEN ® UNLIMITED, INC. - Domestic & International (Air/Ocean) BE PART OF THE TEAM FREIGHT SALES - Air Charter Service AGENCY - Exclusive Truck Fleet - Express Truck & T/L brokerage • Seeking successful professionals as -State-of-Art Ops Technology • partners in new offices - GPS Tracking System • Receive salary and ownership with no - Corporate National Accounts Support • investment required • We will set up office with access to - Centralized Accounting Collections Billing •W worldwide network - Commission Paid Weekly • You run the office and build the business - No Franchise Fee •Y • Denver, San Francisco and other cities available - National Carrier Contracts • - IATA and OTI Forwarder Certificates Reply in confidence to: - Protected Territory [email protected] or toll free USA to Contact Bill Frazier at: DAVID MARX at 800-878-0303 704-423-9911ext 225 www.expressairfreight.com [email protected] www.NationsExpress.com

FREIGHT EXPEDITING

OHIO C C L PrimeTime L E Delivery & Warehouse E U.S. LOGISTICS V V E E 24/7/365 Live Dispatch L L OPEN YOUR OWN A Expedited Delivery A N Throughout US and Canada N AIR FREIGHT SALES AGENCY! D D All Drivers TSA Certiﬁ ed • • White Glove Service LOOKING FOR A A Same Day • Next Day A FEW GOOD SALES PROS! K Scheduled Deliveries K R 2 Man • Cargo Vans R •UNLIMITED INCOME POTENTIAL •NO START UP FEE O O •COMPUTERIZED •ESTAB. 1968 - DOMESTIC & INTL. Straight Trucks • Liftgates •CONTRACT RATES - DISCOUNTS •AIR & OCEAN FORWARDING N N • “The Agent” to call in the • TIRED OF CORPORATE POLITICS? Cleveland / Akron / Canton TIRED OF MAKING SOMEONE ELSE RICH? C C START CONTROLLING YOUR OWN FUTURE! A markets A CALL: JACK JACOBSEN Tel: (516) 938-3610 N www.primetimedelivery.com N Executive Vice-President Fax: (516) 938-3164 T [email protected] T e-mail: [email protected] O O major cities available, including 800-866-7530 EWR • SEA • PDX • DEN • IAH N N OHIO SLC • CLE • MEM • MSP

ACW APRIL 2011 43 aircargoClassifieds

GLOBAL INSIGHT - GLOBAL DELIVERY ANY WAY YOU WANT IT !

On Line

E-Newsletter Digital

ACW-House-AD.indd 1 3/19/2010 2:20:13 PM pet shipper / pet MOVers CArgO restrAints

•••CARGO NETS & STRAPS

• Tie-Down Straps & Nets • Baggage, Floor, Barrier & Pallet Nets • FAA/EASA Accepted Designs • Custom Engineering - Prompt Delivery • Cargo Rings / Seat Track / Hardware AirCargo Large or small, www.cargosystems.com RESTRAINT SYSTEMS FOR EVERY NEED Classifieds we handle them all!! P.O. Box 81098, Austin, TX 78708-1098 [email protected] PUT THE POWER OF www.airanimal.com Tel: (512) 837-1300 • Fax: (512) 837-5320 CLASSIFIED [email protected] FAA/EASA Certi ed Rep Station TO WORK FOR YOU Telephone: U.S. Toll Free 1-813-879-3210 1-800-635-3448 Air Cargo World Fax: 1-813-874-6722 Fax: 1-877-874-6799 freight sOftWAre reaches the key air freight decision makers. Air CArgO AttOrneY Go Global and Advertise in Air Cargo World’s David Cohen, Esq. International Edition 35 Park Ave, Suite 16J Contact Pam Latty New York, NY 10016 678-775-3565 Email:[email protected] [email protected] Phone: (212) 217-9527 • Fax: (212) 208-2408

44 APRIL 2011 ACW bottomline

CARRYING EUROPE U.S. AIRLINES Monthly year-over-year percent change in overall Monthly year-over-year percent change in domestic freight traffic and Asia-Pacific freight traffic for and international cargo traffic for U.S. airlines. European airlines. 20 35

Overall 30 Domestic 15 International Asia-Paciﬁc 25

10 20 15 5 10 5 0 0 -5 -5 3/10 4/10 5/10 6/10 7/10 8/10 9/10 10/10 11/10 12/10 1/11 3/10 4/10 5/10 6/10 7/10 8/10 9/10 10/10 11/10 12/10 1/11 Source: Association of European Airlines Source: Air Transport Association of America

CARRYING ASIA SHARING MARKETS Monthly year-over-year percent change in capacity, in International air cargo year-to-date percent change for available tonne kilometers, and traffic, in freight tonne January 2010 vs. January 2011 kilometers, of Asia-Pacific airlines. 40 Middle East

35 Capacity North America Trafﬁc 30 Europe 25 Asia/Paciﬁc 20 Latin America 15 Africa 10 Total 5 3/10 4/10 5/10 6/10 7/10 8/10 9/10 10/10 11/10 12/10 1/11 0 3 6 9 12 15 Source: Association of Asia Pacific Airlines Source: IATA

CARRYING INTERNATIONAL SEMICONDUCTORS Monthly year-over-year percent change in total scheduled Worldwide monthly year-over-year percent change international freight traffic and capacity worldwide in sales of semiconductors and month-to-month in freight tonne-kilometers and available tonne-kilometers. percent change.

35 60

30 Capacity 50 M-O-M Trafﬁc Y-O-Y 25 40

20 30

15 20 10 10

5 0

0 -10 3/10 4/10 5/10 6/10 7/10 8/10 9/10 10/10 11/10 12/10 1/11 3/10 4/10 5/10 6/10 7/10 8/10 9/10 10/10 11/10 12/10 1/11 Source: IATA Source: Semiconductor Industry Association

ACW APRIL 2011 45 opinion

Peter Quantrill is the director general of the British International Freight Association (BIFA)

Positives outweigh the challenges in 2011

fter the economic car crash that put the High on the list of challenges will be the price of oil. brakes on airfreight in 2010, industry insiders Internal unrest in some of the world’s major oil producers are around the globe are wondering if 2011 has already helped send up the global oil price. This has will be the year that this mode once again has major implications for airlines and forwarders. its foot on the gas? Early indications suggest cautiousA optimism might be in order. Growth markets Figures released in February by the International Air The positives this year may yet outweigh the range of Transport Association (IATA) showed that international difficulties faced by airfreight. China is likely to cement scheduled traffic in January 2011 showed 9.1 percent its position as a major global airfreight force, and we growth in airfreight compared to January 2010. Freight can expect the beginning of major structural shifts in carried by North American carriers was up 14.1 percent the Chinese market as major carriers merge their cargo in January compared to levels a year ago, the highest of operations. any region. However, the much weaker economic climate in Europe continues to hold back freight traffic recovery for “High on the list of challenges some airlines in that region. Volumes are still 11 percent below the pre-recession peak. will be the price of oil. “ More recently, IATA also said that air cargo volumes are expected to grow by 6.1 percent for a total of 46.2 million tonnes of air cargo in 2011. No sooner had IATA Beijing appears to be looking to create a domestic spoken than political trouble blew up in the Middle East champion that will take on foreign carriers, a group that’s and North Africa, producing concerns for the global estimated to control 80 percent of Chinese airfreight. economy and the security of the aviation supply chain. Elsewhere in Asia, much of the region is shaping up as a This unrest is still continuing. major engine for airfreight growth. Rising standards of living in India and China are drawing in imports, while Security on the agenda exports of finished goods continue apace. Security will remain a major consideration within In terms of capacity, many in the airfreight market are the airfreight environment, given the temptation of ill- continuing to ask when the Boeing 747-8 freighter will intentioned people to disrupt the global supply chain. finally make its appearance. Its arrival will signal that Many governments and politicians are working on air cargo really does have a main-deck future; finally changing air cargo security in a way that dramatically seeing the plane will be a big boost to confidence in the impacts the business. BIFA has always said that we must industry. resist a knee-jerk reaction. The industry must be secure The global air cargo business remains quite fragile, with effective measures that facilitate the speed needed and any economic crisis or shock could have a negative to support global commerce. Air cargo security must impact on recovery. The British International Freight be based on a combination of measures — supply chain Association is urging our members to work together with security, scanning technology, better use of e-freight all players in the industry as an entire value chain to data and robust intelligence. improve competitiveness. ACW

HAT China

NEON SIGN Hong Kong www.chrobinson.com

ICE CHEST Italy

KETCHUP BOTTLE United States

SALT India DENIM BLAZER Argentina

BAR STOOL Singapore

EPOXY Germany

Our expertise is everywhere you look. Thousands of customers in all kinds of industries rely on us to expand their global supply chains around the world. As a leading global forwarding provider, our top priority is delivering unbeatable service and execution to customers. Whether you need ocean, air, customs brokerage, or project cargo solutions, we’ll do the same for you. Contact us today and tie your entire global supply chain together. [email protected] | 800.323.7587 DID YOU KNOW?

Last year, 655 million mobile devices worth more than $42 billion were exported from China.

Here’s an opportunity that will have everyone talking, texting and browsing. It’s no secret that mobile devices, including smartphones and tablets, are in high demand all over the world. AA Cargo offers an expansive network and reliable express product, Expeditefs, to help you make the most of this opportunity. And with new daily nonstop 777 service from Shanghai to Los Angeles, there are more options than ever. With consumer demand expected to create a $260 billion market in this category by 2015, you may just want to use your own mobile device to learn more.

NOT JUST To get the full story on this FLIGHTS. BUSINESS and other market insights, INSIGHTS. visit AirCargoInsights.com.

AACargo.com

American Airlines CargoSM mark is owned by American Airlines Inc. Terms and conditions apply. Source: WorldCity & Datamyne.

AAC12037-1_MobileAd_8x10875_ACW.indd 1 3/21/11 11:56:02 AM