CoverINT 10/20/06 3:48 PM Page 1

WWW.AIRCARGOWORLD.COM

NOVEMBER 2006 INTERNATIONAL EDITION

Tracking Shipments GloballyGlobally Middle East • Polar Air • Built-Up Pallets Project1 10/17/06 9:28 AM Page 1 01TOCINT 10/20/06 12:21 PM Page 1

INTERNATIONAL EDITION

November 2006 CONTENTS Volume 9, Number 9 REGIONAL REPORTS Tracking 12 Tech A new fleet and IT systems 2222 Exceptions are the rule are all part of ’ as far as shippers are con- multi-million dollar cargo cerned as visibility spreads makeover in the 49th state • into air cargo transport. Northern Fleet 16 A deal with the devil is how some in the cargo community see Frankfurt Airport’s drive for more capacity 20 Pacific Thailand’s much maligned $4 billion airport is finally open and Middle the air freight world remains 32 East concerned Regional conflicts and volatile oil prices haven’t slowed down the world’s fastest growing air cargo market.

DEPARTMENTS Pallet 2 Edit Note Packing 6 News Updates 38 More freight forwarders 42 People are building up their own pallets to maintain market 44 BACK Aircraft share, contain costs and Report combat encroachment. 46 Bottom Line 48 Events

WWW.aircargoworld.com

Air Cargo World (ISSN 0745-5100) is published monthly by Commonwealth Business Media. Editorial and production offices are at 1270 National Press Building, Washington, DC, 20045. Telephone: +01 (202) 355-1172. Air Cargo World is a registered trademark of Commonwealth Business Media. ©2006. Periodicals postage paid at Newark, NJ and at additional mailing offices. Subscription rates: 1 year, $58; 2 year $92; outside USA surface mail/1 year $78; 2 year $132; outside US air mail/1 year $118; 2 year $212. Single copies $10. Express Delivery Guide, Carrier Guide, Freight Forwarder Directory and Airport Directory single copies $14.95 domestic; $21.95 overseas. Microfilm copies are available from University Microfilms, 300 North Zeeb Road, Ann Arbor, MI 48106 USA. 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 Rosewood Drive, Danvers, MA 01923 USA, and provided the number of copies is less than 100. For authorization, contact CCC at (508) 750-8400. The Transactional Reporting Service fee code is: 0745-5100/96/$3.00. For those seeking 100 or more copies, please contact the magazine directly. POSTMASTER and subscriber services: Call or write to Air Cargo World, Customer Care Department, 400 Windsor Corporate Park, 50 Millstone Rd., Suite 200, East Windsor, NJ 08520-1415 USA; telephone (888) 215-6084

November 2006 AirCargoWorld 1 02EditorialINT 10/23/06 9:36 AM Page 2

Editor’s Note International Trends & Analysis Editor Paul Page • [email protected] Managing Editor Robert Moorman • [email protected] Contributing Editors Roger Turney, Ian Putzger Mike Seemuth Art & Production Director Jay Sevidal • [email protected] Editorial Offices 1270 National Press Bldg., Washington, DC 20045 (202) 355-1170 • Fax: (202) 355-1171 PUBLISHER Evolution Steve Prince • (770) 642-9170 • [email protected] ichael Chowdry, the late founder of , was a fan of the A380. A few months before his death in a plane Advertising/Business Office 1080 Holcomb Bridge Rd. • Roswell Summit crash, the man who took outsourced aircraft operations Building 200, Suite 255 • Roswell, GA 30076 M (770) 642-9170 • Fax: (770) 642-9982 to new levels in international air freight called the Airbus triple- Assistant to Publisher decker aircraft a natural evolution in aircraft design, one that pro- Susan Addy • [email protected] International Advertising Offices vided a potential 15 percent improvement in productivity. Europe, United Kingdom, Middle East David Collison • +44 192-381-7731 That wasn’t exactly the view in the airline industry back in the late 1990s when [email protected] Japan Airbus and Boeing essentially turned in different directions in their very funda- Masami Shimazaki • +81-3-5456-8230 [email protected] mental views of the future of air transport. The Airbus decision took the compa- Thailand Chower Narula • +66-2-641-26938 ny and the airline industry into uncharted economic and technological skies. [email protected] Taiwan At the time, Airbus was the avatar of air transport’s future, an agile visionary Ye Chang • +886 2-2378-2471 [email protected] team looking toward a world built on globalization and , New Zealand long haul air services of unprecedented scale. Pointing to Fergus Maclagan • +61-2-9460-4560 [email protected] projections of demand for point-to-point flights and Sri Lanka Jaiza Razik • +94-133-3424 more frequencies, Boeing argued the economics of the [email protected] Korea “superjumbo” market was questionable for even one Mr. Jung-won Suh • +82-2-3275-5969 [email protected] manufacturer and carried only mutually assured destruc- Classified Advertising and Reprints tion if the two jet makers competed. Tamara Rodrigues • [email protected] (770) 642-8036 For now, at least, the economics are breaking the way Display Advertising Traffic Coordinator Boeing said they would. Tracey Fiuza • [email protected] While the troubles in the A380 program are reverber- (973) 848-7106 Electronic Rights and Syndication ating across the airline industry and into the Airbus Barbara Ross • [email protected] management, Boeing is toting up sales of 787 passenger aircraft and adding to (973) 848-7186 its orders for 747-8 freighters. CUSTOMER SERVICE OR TO SUBSCRIBE: (888) 215-6084 Meantime, the third delay in the A380 production program landed with an impact in the cargo aircraft world like, well, like a fully-loaded A380. The earli- er delays in the passenger edition of the Airbus program hadn’t really touched the freighter industry, which tends to be more interested in moving entertain-

ment systems than using them. 400 Windsor Corporate Park Now, key A380 freighter customers FedEx and UPS say they are sticking 50 Millstone Rd., Suite 200 East Windsor, NJ 08520-1415 with their Airbus orders but both express carriers had decidedly chilly respons- (609) 371-7700 • (800) 221-5488 es to the latest delay announcements and both are now looking at how to fill President and CEO Alan Glass Senior Vice President, CFO Dana Price in what they are calling interim capacity gaps. Vice President, Magazine Group Peter Tirschwell But that doesn’t mean the air cargo industry won’t get those operating im- Group Publisher Noreen Murray provements Chowdry saw in the A380. What he hoped for, he told us then, President, PIERS Brendan McCahill Vice President, Directory Databases Amy Middlebrook was that Airbus’s initiative would push Boeing to respond with improvements Vice President, Human Resources Kenneth P. Slivken in its own aircraft designs. Vice President, Production & Manufacturing Meg Palladino As it turns out, Boeing did respond. That may be why Boeing’s response to Director of Circulation John Wengler the Airbus’s woes remains muted. In the long-term, the plane and its problems Director of Creative Services John White are part of an evolving story in which each manufacturer has acted and re- President, BACK Aviation Steven G. Casley sponded, and evolved. POSTMASTER: Send address change to: Air Cargo World, 400 Windsor Corporate Park, 50 Millstone Road, Suite 200, East Windsor, NJ 08520-1415.© 2006 Commonwealth Business Media Inc. — All Rights Reserved For more information visit our website at www.aircargoworld.com

2 AirCargoWorld November 2006 Project1 8/18/06 7:57 AM Page 1 04,05 10/18/06 7:29 PM Page 1

At the center of the Western Hemisphere. At the top in international freight. Why your cargo strategies should include MIA.

A leader in the Americas in international freight and the world’s largest gateway to Latin America & the Caribbean, Miami International Airport offers the greatest north / south cargo flows in the Western Hemisphere. Handling 80% of all air imports and 77% of all exports from the Latin American / Caribbean region, MIA serves as the hub for distribution of perishable products, hi-tech commodities, telecommunications equipment, pharmaceuticals and industrial machinery. Over 90 airlines contribute to our strong two-way cargo traffic, offering optimal opportunities to link the Americas with the high growth markets in Asia, Europe, the Middle

East and beyond. Exceptional infrastructure and facilitation, new runway capacity with no slots or delays, and

room for growth complete MIA’s attributes. Consider One Airport for All the Americas. Contact us at MIA. 04,05 10/18/06 7:29 PM Page 2

Now More than Ever, Success Means A Full Flight

MIAMI INTERNATIONAL AIRPORT One Airport for All the Americas [email protected] 06NewsUpdateINT 10/20/06 3:43 PM Page 6

UpdatesNews

DHL now will have access to Po- lar’s fleet of six 747-400 freighters, as well as the 747-200s of ACMI provider Atlas. Flynn suggested in a conference call that linking with Polar could prompt DHL to cut short its agree- ment with for block space on Northwest’s trans-Pa- cific freighters before the pact’s expi- ration in October 2008. Northwest issued a prepared state- ment saying, “We will discuss with DHL how NWA will fully serve DHL during the remaining two years of the current contract, and how NWA’s unmatched Pacific network can con- tinue to enhance DHL’s business.” The DHL/Polar partnership, which is subject to legal and regulatory DHL Stakes Out Polar scrutiny, is expected to be finalized by early 2007. HL has never liked flying its own freighters on international routes but Bumpy A380s that’s not stopping the express carrier Dfrom trying to control some of the edEx and UPS are demanding ad- world’s largest air freight capacity. Seeking a big- Fditional information from Airbus ger position in the trans-Pacific market, DHL will on how long their A380 freighter or- pay $150 million cash to acquire a 49 percent eq- ders will be delayed, while the manu- uity stake and 25 percent voting interest in Polar facturer tries to regain its footing with Air Cargo, the scheduled 747 freighter division of a new leader and restructuring plan. Atlas Air Worldwide Holdings. “The production freighters don’t The purchase includes an agreement for a 20-year strategic partnership have entertainment systems. So for commercial capacity, a pact potentially worth some $3.5 billion for we’re still trying to understand the DHL’s place on Polar’s widebody aircraft to China and other key interna- actual cause of the delays,” said UPS tional trade destinations. Airlines spokesman Mark Giuffre. AAWH President and CEO William J. Flynn called the deal a “landmark “Until we have a better under- transaction” that will guarantee a long-term revenue stream, locking up what standing of what those new delivery Flynn called “the world’s largest buyer of third-party airlift capacity.” dates might be, we’re still in a hold- It also in one quick move gives DHL access to dependable capacity to rival ing pattern,” said Maury Lane of the rapid expansion of FedEx Express and UPS, operators that have sharply FedEx. Before the latest delay, Air- ramped up flights into China and opened hubs in the country in the past year. bus assured FedEx and UPS that John Mullen, CEO of DHL’s Express division said the partnership “ensures their A380s would begin arriving in we can meet the rapidly rising demand for air cargo capacities between the the first and fourth quarter of 2009. U.S. and Asian destinations.” Unlike customers of the passenger In late August, the U.S. Department of Transportation awarded Polar four carrying A380s, which have been added weekly frequencies for U.S.-China air cargo service beginning March 25, briefed by Airbus on how long their 2007, bringing Polar’s weekly China flights to 16. orders will be delayed, FedEx and

6 AirCargoWorld November 2006 06NewsUpdateINT 10/20/06 3:43 PM Page 7

News Updates

UPS, were largely left in the dark, This latest directive follows an all- haul lift to support its growing quilt said sources at both companies. encompassing final rule issued last of agreements. FedEx and UPS declined to confirm May expanding air cargo security TNT in September sold its TNT whether they were negotiating with throughout the supply chain. In ad- Logistics unit to private equity firm Boeing on new freighters. But inde- dition to strengthening the known Apollo Management for $1.91 bil- pendent sources confirmed that shipper program, the so-called cargo lion, turning its back to a contract FedEx was in informal talks with Boe- security rule requires the establish- logistics business the company ing on its 747-8 freighter. Neither ment of a security program for cargo says is plagued by fundamentally FedEx nor UPS would say whether airlines operating jets. low margins. they were considering canceling all or part of their A380 orders, however. TNT Shifts Weighing MK Both carriers have placed firm or- ders for 10 A380s plus 10 options inally rid of its logistics unit, TNT n incorrect weight and balance and were among a growing group Fis pressing its focus on express Acalculation, crew fatigue and of airlines looking increasingly and mail business amid what may darkness contributed to the deadly alarmed at delays in the program be far larger changes in the commu- crash of an MK Airlines 747-200 on and looking for possible compensa- nity and its markets. takeoff from Halifax International tion from Airbus. The European Union’s highest Airport two years ago, the Transporta- court ruled in September that the tion Safety Board of Canada said. DHS Screens Dutch government’s so-called The final report on the Oct. 14, “golden share” in TNT is illegal. The 2004 pre-dawn crash said investiga- s air cargo operators prepared special vote to veto measures such tors found a crewmember’s mistake Afor the onset of new security re- as a sale to another company is in- in determining the proper takeoff quirements in the United States last tended to preserve TNT’s role as speed on a Boeing Laptop Tool con- month, the Department of Homeland the universal postal service provider tributed to the crash. Lack of training Security added new screening require- in the Netherlands. on the device and crew fatigue likely ments for packages brought to ticket The Dutch government owns 10 compounded the error, the board and cargo counters. percent of the operator, and the gov- said. The aircraft was far heavier than “At the direction of and in cooper- ernment says it plans to sell those the crew calculated. ation with the TSA, the airlines are shares, including the golden share, The accident, which killed all seven working to implement screening which could leave TNT open to a po- crewmembers, happened on the sec- procedures for all express cargo ship- tential takeover. ond leg of a four-city flight to ments identical to those applied to The change comes as the Euro- Zaragoza, Spain. Records indicated the checked baggage,” said Air Transport pean Union is considering opening flight crew was scheduled for a 24.5- Association Executive Vice President up more postal operations to com- hour duty day and several crewmem- John Meenan. “Like any security petition, potentially opening a new bers had already been on duty for 19 program change, this involves adapt- era in mail distribution in Europe. hours. The report said investigators ing logistics and resources to meet TNT is taking steps to raise its found 24-hour work days were com- the challenge.” profile in the mail business. The mon at the one-time Ghana-based air- Numerous U.S. airlines already re- company struck a five-year, $120 line, which now operates out of the quire belly-bound parcels to pass million deal to handle international United Kingdom. through the same explosive detec- express parcels for the French postal In its final report, the board recom- tion devices used for checked bag- authority La Poste and won approval mended regulators require aircraft to be gage. The airlines also conduct ran- to purchase of German mail consol- equipped with a takeoff performance dom inspections of cargo using idator operator PostCon. monitoring system to alert crews of bomb-sniffing dogs and that is ex- At the same time, TNT is expand- inadequate takeoff performance. pected to increase, said TSA and air- ing its network with the addition of Following an audit after the acci- line officials. two new 747 freighters, adding long- dent, MK Airlines changed its opera-

November 2006 AirCargoWorld 7 06NewsUpdateINT 10/20/06 3:56 PM Page 8

News Updates

tions, training, and maintenance and tions in a bid to get its sagging re- ing performance,” said UPS Chair- management structure. It received a sults more in line with the rest of the man and CEO Mike Eskew. U.K. operating certificate for its 747s company. UPS spokeswoman Susan Rosen- and established a safety management The rare layoffs at UPS come as berg would not detail where the cuts system. The board’s investigation UPS is continuing to consolidate the will come but said the realignment and subsequent audits raised safety Menlo Forwarding business into its will be done by year’s end. This sum- concerns, but ultimately found that logistics unit and faces lost business mer, UPS closed the Dayton hub it the airline posed no immediate in the trucking operation now called got along with Menlo Forwarding threat to safety. UPS Freight. and consolidated that operation pri- Following the accident, FAA low- UPS Supply Chain Solutions marily into its main Louisville air ered the safety ratings for Ghana showed a $19 million operating loss freight facility. from Category I to 2 for not comply- in the third quarter on more than $2 ing with international safety stan- billion in revenue. By contrast, UPS One-Stopping dards, a rating that remains in effect. overall earned a $1.58 billion operat- ing profit in the third quarter on n the never-ending debate on the Laying Off $11.66 billion in revenue. Ireal value to shippers of one-stop “We are taking the steps neces- shopping, comes this newsy morsel PS’s Supply Chain Solutions di- sary to put our supply chain division from Unisys Global Shippers’ Sur- Uvision will cut some 1,200 posi- on the right track after a disappoint- vey 2006.

www.poletairlines.com

Worldwide Charter Flights Max Payload 120 Tons

Main Commercial Office US Office (New York): Headquarters in Voronezh (Europe): Tel: (1-212) 279-3707 (Russia): Tel: (357-25) 343-527 Toll Free: (1-866) POLET-US Tel: (7-0732) 392-850 Fax: (357-25) 343-539 Fax: (1-212) 279-6499 Fax: (7-0732) 392-849 [email protected] [email protected] [email protected]

8 AirCargoWorld November 2006 Project5 9/27/06 6:13 PM Page 1

THAI Cargo at , 06NewsUpdateINT 10/20/06 3:44 PM Page 10

News Updates

“Despite the billions spent on ac- complacent, regardless of their size Adds quisitions, our survey suggest that and capabilities, the respondents said. eroflot is expanding its Euro- this trend leaves the leading cus- Companies that use a one-stop Apean base at Frankfurt-Hahn tomers of the forwarding companies shop are also “very vulnerable” if that airport with the launch of its whol- cold,” Unisys said. provider went out of business, said ly-owned cargo division, Aeroflot Asked if they intended to move to- Larry Woelk, consultant for the Tri- Cargo. ward one-stop shopping, 70 percent angle Management Services, which New CEO Andrei Goryashko said of the shipper respondents said no. A conducted the survey interviews. forming a cargo subsidiary is part of number of the shippers said their lo- “Look at what DHL, UPS and an overall plan to increase substantial- gistics strategy was “not to put all Schenker are doing, it is certainly not ly the freight capacity of one of Aero- eggs in one basket.” what shippers are vocalizing,” said flot’s larger European cargo bases. That comes after dramatic consoli- Woelk. “That doesn’t mean that their Aeroflot also has a strong cargo mar- dation in the air cargo and logistics in- strategy won’t ultimately prevail or ket in the Russian cities of Moscow, dustry, including Deutsche Post’s pur- be proved right, but there is no evi- Novosibirsk and Khabarovsk. chases of DHL, AEI, Danzas and Exel. dence for it yet.” To build up, Aeroflot will lease six Having multiple suppliers forces In other questions, only 1 percent of MD-11 freighters that it will move those chosen to constantly improve the respondents said they use RFID into Hahn while the airline will shift their services and keep prices competi- tags but 38 percent said customers its lower-capacity DC-10-30s to do- tive. A single provider might become pressure them to use the technology. mestic service within Russia. ■

You do have options, day or night

Denver International Airport moves cargo all hours, day or night, without curfews and without congestion. DEN offers a premier airfield and the best facilities. Quality and effi ciency are not goals, but standard operating procedures. Isn’t it time to choose a better option for handling cargo?

For more information contact Jerry Kanter at (303) 342-2531 ([email protected])

www.fl ydenver.com

10 AirCargoWorld November 2006 Project5 8/14/06 10:25 AM Page 1

$ANGEROUSÖGOODS

,IMITEDÖTIMEÖOFFER /RDER  $'2 0RODUCTSÖ BEFORE $ECEMBER  Ö AND GET A FREE COPY OF THEÖ NEW $ANGEROUS 'OODS Ö !N )NTRODUCTION BOOKLET

9OUÖCOULDÖBEÖSURPRISEDÖBYÖWHATÖMAYÖBEÖCONSIDEREDÖDANGEROUS

3OME FROZEN PRODUCE LIKE GREEN PEAS Ö )!4!S $ANGEROUS 'OODS 3OLUTIONS INCLUDE IS PACKED IN DRY ICE WHICH ISÖ p $'2 -ANUAL CONSIDERED A DANGEROUS GOOD 7HENÖ p $'2 #$ 2/- SHIPPING DANGEROUS GOODS BY AIR Ö COMPLIANCE TO REGULATIONS IS MANDATORYÖ p $ANGEROUS 'OODS E LIST )!4!S $'2 IS THE MOST UP TO DATE Ö p )NFECTIOUS 3UBSTANCES 3HIPPINGÖ USER FRIENDLY REFERENCE RECOGNIZED BYÖ 'UIDELINES -ANUAL THE WORLDS AIRLINES FOR  YEARS p $ANGEROUS 'OODS 1UICK 2EFERENCE 'UIDE &IND OUT MORE ABOUT HIDDEN DANGEROUSÖ p $ANGEROUS 'OODS !N )NTRODUCTION GOODS AT WWWIATAORGHIDDEN DG p $ANGEROUS 'OODS 4RAINING 12RegionalsINT 10/20/06 12:22 PM Page 12

ReportsRegional

NORTH AMERICA Combi Craze An upgraded fleet and next-generation software are part of Alaska Airlines’ multi-million dollar cargo makeover

systems to become a more sophisticat- ed cargo operation. As part of the transformation, Alas- ka will replace the aging fuel guzzling 737-200s with five retrofitted 737- 400s. Four aircraft will be combis, ca- pable of carrying four, fully-con- toured A2 pallets in the front and 72- seats in the back. The four pallets will have a total weight capacity of 18,000 pounds in addition to between 5,000 pounds to 8,000 pounds of cargo ca- pacity in the aircraft’s belly. The fifth aircraft, an all-cargo 737- 400 freighter, began revenue service in June. The all-cargo version is the first of its kind to be converted from passenger to freighter and provides 50 percent more cargo capacity than the laska Airlines has come a long way since 1932 when 737-200 it replaces. Deliveries of the Linious “Mac” McGee started flying cargo and passen- remaining combi-aircraft are sched- gers in a three-seat Stinson between Anchorage and uled through 2007. The combis will Bristol Bay, Alaska. The nearly 75-year- provide fuel savings A By Robert W. Moorman old airline is now spending $100 million to transform of 20 percent per its marginally profitable cargo division into a viable profit center. block hour over the -200s, says Yerbic. The airline says the upgrade is to better serve the people of Alaska, whose heavy reliance on air cargo is well documented. But the story is also about en- Quick Change hancing profitability and efficiency of the cargo division through long-term investment. It’s about controlling costs and modernizing this segment to re- A regional specialist with major air- main marketable. line status, Alaska Airlines is unique “We wanted reasonable margins, but it was becoming increasingly difficult among United States’ major passen- to make money in this business with an aging fleet of cargo aircraft,” says Matt ger airlines. Yerbic, managing director of cargo. Cargo accounts for 4 percent of Alaska’s It has limitless potential to carry revenue, but could jump to 7 percent with the transformation, says Yerbic. cargo in and out of a state which has The airline hired Mercer Consulting to help it better “understand and manage a very limited road system. A number costs” of its cargo division, said Mercer’s Geof Murray. “We helped them on the of cities are totally dependent on air revenue and cost side.” Mercer recommended the airline invest in new software during the winter months.

12 AirCargoWorld November 2006 12RegionalsINT 10/20/06 12:22 PM Page 13

ReportsRegional

The carrier’s use of the 737 marks a With its niche, the cargo division Northern Light new endorsement for the narrowbody is not a threat to FedEx, UPS and orthern Air Cargo’s plan to con- aircraft that is gaining a greater DHL Express. In fact, these large inte- Nvert three 737-200s passenger foothold in the cargo market as air- grated carriers “are a huge part of our aircraft to full freighters will likely in- lines look to replace aging 727s and business,” said Yerbic, as is the U.S. crease air freight competition in and other planes. Pemco World Air Ser- Postal Service. out of Alaska. vices, which is retrofitting all five It’s unlikely Alaska Air Cargo will David Carp, president of the An- Alaska Airlines 737-400s, is “actively ever become a major force in the chorage-headquartered NAC said this negotiating” with airlines in Europe American cargo business, but the modification contract is part of the and Asia on QC conversions, says airline’s investments show “they new parent company’s pledge to re- Kevin Casey vice president for busi- want to make cargo an integral part fleet the airline and “position our- ness development. of its overall operation,” said one in- selves to expand our services in and Replacing aircraft is only part of dustry analyst. out of Alaska.” Alaska’s transformation. Last month, Commodity Forwarders, and Commercial Jet of Miami will con- the carrier launched an IT system to Movers Inc. are among the for- vert the three aircraft using Aeronau- simplify cargo reservations, document warders that deal extensively with tical Engineers supplemental type cer- handling and accounting. Developed Alaska Airlines, as do large seafood tificate. CJI’s will also upgrade the by Zurich-based Softair, CargoSpot al- businesses such as Trident Seafood cockpit of each aircraft with Universal lows Alaska Airlines to: maintain a and Ocean Beauty Seafoods, which Avionics’ flat panel avionics displays, central database to manage the air- are always looking for additional lift dual flight management systems and line’s known shipper list, track cargo for their product. global positioning systems. CJI also shipments and automatically generate “One of the biggest choke points will responsible for the “C” checks on invoices and e-mails when shipments we face is the quick movement of the 737-200s. arrive. The system also generates au- fresh fish out of Alaska,” says Tom Seattle-based Saltchuck Resources, tomated documents for dangerous Sunderland, director of marketing for which assumed ownership of NAC in goods. CargoSpot replaces the limited Ocean Beauty Seafoods. “Often, there February 2006, also plans on upgrad- SAAC mainframe system used to is more demand for fresh fish than ing NAC Link, the freight forwarder process shipments. the ability to get it from Alaska to the division. Greater focus on adherence Another IT addition to the cargo di- lower 48 [states].” to schedules is another goal of the vision is the wireless WAN-based Jan Koslosky, director of supply NAC, he said. tracking system from AirClic, which chain management says Alaska Air- NAC operates a fleet of 727s and provides scanning capability via the lines was offered between “70-80 per- DC-6s and recently sold its cargo-con- cellular network. cent” of what Ocean Beauty Seafood figured ATR-42. processes, but didn’t have the neces- Fishy Business sary lift to fill the order. … Briefly Having sufficient lift is only one Alaska Airlines and its regional air- challenge. There is the always unpre- The U.S. Postal Service, over- line subsidiary Horizon Air transports dictable Alaskan weather and the great hauling its airline transport systems, 150 million pounds of cargo annual- distances the aircraft must cover, says awarded mail contracts to seven pas- ly, of which 30 million pounds are Sunderland, as well as the extraordinar- senger airlines: , fresh fish bound for the lower 48 ily short fishing season, which for Cop- American Trans Air, Continental states and various international gate- per River Salmon is roughly 60 days. Airlines, JetBlue, Midwest Air- ways. Copper River Salmon from “The demand for fresh fish is al- lines, Sun Country Airlines and Cordova, the giant-clam Geoduck ways there and this transformation US Airways. The contracts include from the waters near Ketchikan, and at Alaska Airlines will increase our tough new delivery and tracking re- Halibut caught off Kodiak Island, ability to meet that demand,” says quirements. … Freight traffic at New give Alaska Air Cargo its scale in the Sunderland. “So this has to be a York’s Kennedy International seafood trade. good thing.” Airport fell for the 18th straight

November 2006 AirCargoWorld 13 12RegionalsINT 10/20/06 12:23 PM Page 14

ReportsRegional

month in July, falling 1.9 percent on include air cargo facilities and distrib- Dallas. … Polar Air Cargo named a 16.6 percent decline in domestic ution centers. … Imex Cargo as its general sales agent traffic. Freight fell 3.1 percent in the named Air Logistics America as its in the Boston area. … Aviareps, the first seven months of 2006, with do- cargo general sales agent in the Unit- international general sales agency, mestic traffic down 15.7 percent and ed States. … Hellmann World Lo- moved its United States headquarters the larger international tonnage up gistics opened a station in Kansas from Miami to New York City. 1.3 percent. … Freight at Seattle- City as part of a larger strategy to Aviareps also signed a management Tacoma International Airport build up U.S. domestic business. … contract to represent Air Greenland soared 37.2 percent in August over Domestic cargo traffic at San Fran- for cargo sales for twice-weekly 757- the same month a year ago, including cisco International Airport grew 200 passenger flights the carrier is a 45.5 percent expansion of interna- 12.8 percent in June, but the overall launching next year to Baltimore. … tional freight. … Forwarder BDP In- traffic was up 1 percent in the first Phoenix International started a ternational began offering time- half of 2006 over the year before. … Global Textile Logistics division the critical shipping within the United Panalpina expanded its contract forwarder said would offer “tailored States and abroad, calling the service with cargo communications provider services” for textile shippers. … BDP/now!. … The Kansas City Avia- Traxon to include all the forwarder’s Southwest Airlines started non- tion Department named Trammell branches in the United States and stop service between Kansas City and Crow as the master developer of its new branches in Canada. … Cathay Denver. … Aviareps signed to repre- KCI Business Park at Kansas City In- Pacific added a fourth weekly sent Halifax International Air- ternational Airport, a site that will freighter flight from to port in the Benelux region. ■

Top frequencies and destinations worldwide. Simply and conveniently. Find out more at www.-cargo.com

Networking the world. Shorts from Paris

Contact lenses from Munich

Shortboard from Miami

14 AirCargoWorld November 2006 Special Advertorial to Air Cargo World Incheon Free Economic Zone — Asia’s No.1 gateway

Th e Songdo District, (at left) which spans 13,162 acres within the Incheon Free Economic Zone, will be developed as an international business and cutting-edge technology city. Th e zone’s Cheongna District (right) will house a forward-looking culture center that will be completed by 2012.

ncheon, a prospering port city on Korea’s Logistics System” on the basis of technologi- center, theme park, golf course, fl oricultural I western coast, is at the heart of the country’s cally advanced infrastructures. complex and a R&D center for GM Daewoo, master plan to become a northeast Asian IFEZ also has the advantage of its among other things. Th e district commenced business and logistics hub. On Aug. 11, 2003, the close proximity to the high-tech manufac- construction in July 2006, with completion government designated Incheon as the nation’s turing complexes of the Incheon and targeted for 2012. fi rst free economic zone to attract foreign invest- metropolitan areas, providing vital industrial ment and to promote multinational businesses. links as well as improved conditions to secure Incheon Free Economic Zone (IFEZ) manpower in cutting-edge industries, such as Current accomplishments with total area of 51,739 acres, consists of information technology. and investments three diff erent areas: Songdo, Yeongjong and As of August 2006, we have signed 42 Cheongna. Its vision is to transform these ar- The IFEZ agreements worth $28.2 billion, including eas into the logistics, international business 15 investment contracts worth $26 billion, and leisure and tourism hub of the northeast development plan nine Memorandum of Understandings worth IFEZ covers an area of 51,739 acres, con- Asian region. $1.7 billion, and eight Letters of Intent worth sisting of the three areas of Songdo, Cheongna, Geographically, it is ideally located to $500 million. and Yeongjong. With the projected population be equipped with air and seaports and tourism Recently, U.S-based Portman will of almost 500,000, the total development and leisure facilities, along with technologi- develop 1,569 acres in the Songdo area worth cost will be approximately US$15.36 billion cally advanced infrastructure. $11 million. On Sept. 11, 2006, Morgan (14.7 trillion won), ranging from 2003 to Stanley Real Estate and Gale International 2020. Phase 1 is to be completed by 2008, and reached an agreement under which Morgan Advantages of IFEZ the entire project should be fi nished by 2020. Stanley will fund $350 million of foreign Compared with other cities in north- Th e Songdo District, spanning 13,162 direct investment for Gale’s New Songdo City and other Korean economic zones, acres, will be developed as “an international development project in IFEZ. Incheon has many competitive edges. business and cutting-edge industrial city.” Th e Apart form the foreign investment, Th e fi rst advantage of IFEZ is that area includes the International Business Dis- there are 36 IT and biotechnology compa- Incheon is ideally located in the heart of north- trict, knowledge-based industrial complexes, nies working in IFEZ and numerous R&D east Asia and can be thought of as a “bridge,” including the Techno Park, IT-BT (informa- institutes in Songdo Technopark. In addition, much like other international cities such as tion technology-biotechnology) complexes and this past January, we agreed to accommodate Hong Kong and Singapore. Global Academic Village. the Yonsei University campus in Songdo. Incheon has the best geographical posi- Th e Yeongjong District, which includes tion to access the major cities of northeast Asia Incheon International Airport, will serve as a because it is close to China, with its huge market “hub for air logistics of Northeast Asia,” cover- The future of IFEZ of 1.3 billion people. In addition, 51 cities with ing the total area of 34,183 acres and developing IFEZ will emerge as a center of logis- a population of more than 1 million are within a into a self-suffi cient city, which will provide the tics, information technology, biotechnology three-and-a-half hour fl ight of Incheon. multiple functions for international tourism, and tourism to become a hub of international Incheon also has world-class marine air logistics, industry and residential living. business by 2020. and air transport facilities including the Port Th e Cheongna District will be trans- IFEZ is expected to serve as an ideal of Incheon with a 120-year history, as well as formed into an “international tourism and technologically advanced city for future genera- Incheon International Airport, which ranks leisure complex.” Spanning the total area tions that can play the role of a gateway to Seoul third globally in cargo volume and 10th in pas- of 4,419 acres, it will be developed into a and northeast Asia, and function as a new senger use, off ering the “Sea & Air Intermodal planned Asian village, international fi nance model of Korean economic development. Q

For more information, please contact: Techno Park, 7-50, Songdo-Dong, Yeonsu-Gu, Incheon, South Korea Tel: +82 32 453 7331 Fax: +82 32 453 7309 Email:[email protected] 12RegionalsINT 10/20/06 12:23 PM Page 16

ReportsRegional

EUROPE Frankfurt’s Nights The European citadel of air cargo is intent on growing even if agreements for expansion come with a heavy cost

Deutsche Post World Net has moved most of its domestic mail flights out of Frankfurt and switched to trucking operations. That only leaves chomping at the bit over the imposi- tion of a nighttime ban at Frankfurt, which accounts for a third of its cur- rent freighter service. “Lufthansa Cargo needs night op- erations, as logistics needs speed,” ar- gues outgoing chairman Jean-Peter Jansen. ”Night flights are indispens- able for intercontinental air freight operations, particularly in competi- tion with the integrators whose en- tire business model is based on night- time operations.” “An absolute night flight ban at fter years of battling the federal government in Berlin, Frankfurt would threaten the very ex- local authorities and environmental groups for more ca- istence of Lufthansa cargo,” says pacity, it appears Frankfurt Airport will get a new run- Lufthansa spokesman Nils Haupt. Away. But, at what cost? Airport operator Fraport appears to have done a deal with the devil. The Express Days German gateway will get a new fourth runway on the condition it imposes a stringent ban on nighttime operations, the government stipulates. Freighter But there are no integrators at operations will suffer the most from a nighttime flight ban but Fraport is at- Frankfurt. UPS has its European hub tempting to mitigate the impact. just up the road at Cologne. By 2008, It’s a condition upon which the airport appears ready to accept. DHL expects to transfer its By Roger Turney “We expect to get final approval for the new runway later next European hub to Leipzig year, which could be operational as early as 2009,” says Robert Payne, a Fra- from Brussels. port spokesman. The move to Cologne by the Why so desperate for extra capacity when the airport appears relatively well DPWN-owned integrator might pres- equipped? Currently, Frankfurt operates two parallel runways and a third cross- sure Lufthansa to move some of its wind runway, which can only be used for take-offs. The parallel runways are too freighter operations out of Frankfurt. close to one another to allow simultaneous operations. With the existing sys- The intercontinental joint freighter tem, Fraport can only use about 50 percent of the airport’s operational capacity. deal struck between DHL and

16 AirCargoWorld November 2006 12RegionalsINT 10/20/06 12:23 PM Page 17

ReportsRegional

Lufthansa two years ago now al airport use. Much of this accounts for a third of the “Aside from our local land will be used to construct German carrier’s MD-11 differences, both parties a new passenger terminal freighter operations globally. recognize the need to complex on the south side of At this juncture, Lufthansa the airport. appears reluctant to transfer affirm Frankfurt as the Fraport’s own in-house car- any or all of its freighter op- prime European cargo go handling operation moved erations from Frankfurt. But gateway.” to the south side of the air- in an extraordinary turn- port, allowing Lufthansa Car- around, Lufthansa and Fra- go to expand its existing han- port reached an accommodation, traffic. Strong business on the North dling operations to the north. Simul- agreeing to jointly develop Frankfurt Atlantic resulted in a two-percentage taneously, independent cargo busi- as a global cargo hub. point traffic gain as well. Asia ac- nesses have gained access to the air- “Aside from our local differences, counts for 49 percent of Frankfurt’s port’s cargo handling facilities. And both parties recognize the need to af- cargo traffic with North America rep- the airport is investing in a trade lo- firm Frankfurt as the prime European resenting 25 percent. gistics zone on 208 acres on the cargo gateway,” said Haupt. ”We This year, through August, Frank- northwest side of the airport. need to do this to overcome the in- furt cargo climbed to 1.4 million Frankfurt appears intent on re- creasingly tougher competition from tonnes, a 10.9 percent year-over-year maining a major cargo center, even if the other European airports.” increase. Even with a night ban now that center is shifting. The partners want, among other certain to be in place by 2010, Fra- things, a major upgrading of the port predicts cargo throughputs will … Briefly Lufthansa Cargo terminal on the climb to 2.75 million tonnes by 2015. north side of the airport and im- Despite the good news, growth at Freight traffic for European air- proved connectivity with the south Frankfurt could be stymied unless lines slipped 0.4 percent in August, side area where much of the cargo ac- another runway is built. Says Fraport including a 1.6 percent decline in tivity takes place. Haupt says there Executive Chairman Wilhelm Ben- Asia-Pacific trade, according to the was the “possibility” Lufthansa der, “We can no longer meet the ma- Association of European Air- would build a new terminal on the jor airlines’ requests for attractive lines, leaving European carriers up south side to be closer to customers. landing and departure slots. Growth 2.3 percent in the first eight months But any proposed development is will now occur at other airports in of 2006. … SAS Cargo joined the contingent on the future Lufthansa Germany and Europe, whilst Frank- online booking platform Cargo faces at Frankfurt. The airline wants a furt will incur stagnation until the Portal Services, becoming the “feasible night-time flying arrange- urgently needed runway capacity is eighth carrier to join the Unisys- ment,” says Haupt. “In the mean- implemented.” backed portal. … time we will continue to look for al- Capacity limitations and threat- cargo traffic fell 5.2 percent in Sep- ternatives to Frankfurt for our ened night flight bans do not ap- tember, the sharpest decline at the freighter operations.” pear to have deterred Fraport from airline in more than a year, despite a developing cargo infrastructure. The slight increase in cargo capacity. ... Strong Growth downsizing of operations by the Czech airline CSA, in a restructuring U.S. Air Force at its Rhine-Main air of some of its services and opera- Despite operational constraints, base allowed Fraport to build a new tions, says it will sell its cargo termi- nothing seems to hinder Frankfurt’s cargo zone on the south side, Car- nal operation at Ryzyne unstoppable growth. goCity South. Fraport also allowed Airport to focus on the cargo trans- For 2005, cargo tonnage improved cargo facilities on the north side to port on its aircraft. Under the sales 8 percent to 1.9 million tonnes. The be re-developed. plan, any buyer of the terminal will growth, says Fraport, was driven The planned departure of the be required to provide handling for mostly by a 20 percent leap in Asia USAF will free 378 acres for addition- CSA. ... ,

November 2006 AirCargoWorld 17 12RegionalsINT 10/20/06 12:42 PM Page 18

ReportsRegional

dropping as port on a 737 freighter. … Logistics for A380s. … Varig Brazilian Air- its sales representative in Europe fol- facilities operator Eurinpro opened ways started flying a DC-10 lowing a change in equity ownership offices in Hamburg and Munich. … freighter weekly between Amster- between the carriers, named Air Lo- Cargo traffic at Moscow Domode- dam, Manaus and São Paulo. … gistics as its general sales and ser- dovo Airport grew 8 percent in the Swift Shipping and Freight Lo- vice agent in the United Kingdom. first six months of 2006 over the gistics, a unit of the Dubai-based … Cargo traffic at /KLM same month a year ago. … Royal forwarder Swift Freight Internation- grew 4.2 percent in September on a Jordanian moved its operations in al, opened offices in New Delhi. … 2.2 percent gain in capacity, largely Moscow from Sheremetyevo Air- Freight management company Spy- on a 6.7 percent jump in trans-At- port to Domodedovo Interna- rou Exelixi is the new general sales lantic business that came despite a tional Airport. … Bolivian airline agent in Greece for . … 2.1 percent slash in capacity. Asia- Aerosur named Active Airlines as named Pacific traffic grew only 1.3 percent its cargo general sales agent in the Aviareps its cargo general sales in the month and was up 1.6 per- Netherlands for twice-weekly 747- agent for Austria for passenger cent over the first nine months of 200 passenger flights between Santa flights between Frankfurt, Hanoi and the year. … TNT Express chose the Cruz and Madrid connected by truck Ho Chi Minh City. … Leisure Car- Unisys Logistics Management Sys- to Schiphol. … named go will be the exclusive cargo sales tem to manage its long-haul Aviareps its general sales agent in agent in Europe for Santa Barbara freighter operations. ... Pakistan Poland. … India’s Jet Airways Airlines for flights between International Airways named named Global Airline Services as Venezuela and Madrid and Tenerife. Airline Cargo Management as its its cargo general sales agent for Con- … Aviance, an 11-member airport general sales agent for new freight tinental Europe for the airline’s six services alliance, became an associate service from Manchester to New weekly A340 passenger flights from member of Cargo 2000, the IATA York, Chicago and Houston. … El Mumbai, Delhi and Amritsar to Lon- interest group dedicated to improv- Al named European Cargo Ser- don Heathrow. … Estonia Air ing processes in the air cargo supply vices as its general sales agent in named Aviareps its cargo general chain. …bmi Cargo added a premier Belgium, France, Germany, Spain, sales agent in Denmark. … express product, 236xps, which al- Switzerland and the United King- Lufthansa Cargo signed a one- lows cargo deliveries to the airline dom for freight going to the United year agreement to wet-lease two MD- up to 90 minutes before departure States and Asia. … Leisure Cargo 11 freighters from World Airways on all outbound flights from the started offering freight space from for routes between the United States United Kingdom. … Amsterdam to Bogota and Quito and Europe. … Lufthansa broke named Globe Air Cargo its general through an Arkefly 767 passenger ground at the Frankfurt Airport on sales agent for Belgium, France and flight to Curaçao and onward trans- its $190 million maintenance hanger Spain. ■ Iraq Neutral air cargo services 4xweekly2Iraq coyne Airways

Gateways worldwide Coyne Airways x Email: [email protected] Full details: Dubai Tel: +97 1508 482362 www.coyneair.com Houston Tel: +1 281 812 7200 Washington DC Tel: +1 703 822 5872 4 London Tel: +44 207 605 6860

18 AirCargoWorld November 2006 Project1 10/4/06 3:13 PM Page 1 12RegionalsINT 10/20/06 12:24 PM Page 20

ReportsRegional

PACIFIC Suvarnabhumi’s Days Bangkok’s new airport may not have had a cargo meltdown, but the Thai facility is a long way from its aspirations

months of the new gateways in Hong Kong and Kuala Lumpur in the late 1990s, openings marred by system failures and assorted problems that added up to heavy congestion and crippling delays. In both cases it took months to clear the backlogs. Golden Land

Thai exporters shared these con- cerns. Perishables exports by air, which account for some 40 percent of Thailand’s air export volume, were down 20 percent on the day the new airport opened. Members of the Thai Fruit and Vegetables Associ- ation Producers Association had sus- military coup in Thailand in September may be of little pended air shipments on that day to consequence as far as the air freight world is concerned, avoid trouble. but opening an airport can seriously hurt your business. In the event, Suvarnabhumi (which AAs the clock was ticking down to the opening of means ‘Golden Land’) suffered minor Bangkok’s new Suvarnabhumi International Airport, the head of glitches on the passenger side on the cargo of one major Asian carrier was feeling decidedly jittery, and first day of operation, but the much- this had nothing to do with the heavy military presence feared breakdown failed to By Ian Putzger in the streets of the Thai capital after the military had materialize. just taken over the government in a bloodless coup. Six days later, however, the pes- A week before the opening of the $4 billion Thai gateway, a year after its simists’ predictions were apparently original due date, the cargo infrastructure was hardly inspiring confidence. Ac- coming true after all. Malfunctions in cording to carriers, the buildings were up but the information technology set- the IT system forced cargo handlers up was far from ready, which threatened dire problems once carriers switched and customs officials to switch tem- over from Bangkok’s old Don Muang airport. porarily to a manual system. Some So one airline was contemplating suspending its cargo operations in Thai- flights left without a kilo of freight land for a couple of days to avoid a potential meltdown. because goods could not be loaded In recent history some mega-airports in Asia inflicted painful cargo experi- on time, the Thai Airfreight For- ences in the wake of their grand openings. Memories are still vivid of the first warders Association reported.

20 AirCargoWorld November 2006 12RegionalsINT 10/20/06 12:25 PM Page 21

ReportsRegional

Moreover, Bangkok Flight Services, ly to change any time soon. completed the purchase of the Chi- the second handler at the airport be- has not moved on in- na’s Hoau Group, a -based sides national carrier Thai Airways, dications made two years ago that it road transport and forwarding busi- was understaffed and did not have might spin off cargo into a subsidiary ness. … A route rationalization pro- enough ramp handling equipment, that could take a more dynamic ap- gram at Malaysian Airlines will according to forwarder reports. proach to the market. For a while it likely cost MASkargo some $16 mil- Ole Ringheim, vice president of air looked as though this gap might be lion in revenue, airline cargo chief J.J. freight for the Asia Pacific region at filled by Thai Air Cargo, a joint ven- Ong said at the recent International DHL Global Forwarding, said the dis- ture between and Thai logis- Air Cargo Forum, as flights to Europe ruptions proved short-lived, however. tics firm Commercial Transport Inter- and Japan are cut back. … China Air After one day of turmoil, the situa- national, but in July the Australian Cargo Service started three-times- tion was more or less under control. carrier announced those plans were weekly freighter flights between Having come through its first suspended indefinitely because of Shanghai, and Copenhagen, scare, the new airport aims to estab- high fuel prices and the unavailabili- the airline’s second 747-400 freighter lish itself as a major cargo gateway for ty of suitable, fuel-efficient aircraft. connection between China and Eu- the region. Without new freighter operations, rope. … carried Thai exports — besides perishables Suvarnabhumi will not be able to 94,987 tonnes in August, 0.5 percent foremost, as well as electronics and mount a challenge to Kuala Lumpur, better than the same month last year automotive traffic — will be the main let alone Singapore, as a regional on a 0.7 percent increase in capacity. engine, but the authorities are look- gateway. Forwarders have been truck- … Cargo traffic at Hong Kong In- ing at a role that transcends the ing cargo from Thailand to those ternational Airport grew 3.4 per- country’s borders. Suvarnabhumi, hubs, not because of the congestion cent in August over the same month which boasts the world’s longest at Don Muang but because of the lack a year ago, the highest increase since commercial runway (13,120 feet) and of maindeck lift. May and extending a lackluster year the tallest control tower, can handle At least Ringheim does not see for the airport. Imports grew only 1.1 1.5 million tons of freight in a year, Kuala Lumpur snatching more traffic percent in the month, although twice the capacity of its predecessor. from the golden land. “I think there’s freighter movements increased 7.4 plenty of room for both of them to percent and were up 8.7 percent in Local Flavor grow,” he said. the April-August period. … China Southern began three-times-weekly Thailand’s immediate neighbor- … Briefly passenger flights between Guangzho hood seems to hold some promise. and Dubai. … Freight throughput at Ken Choi, president of Freight traffic carried by Asian air- Singapore in Au- Cargo, sees good potential for traffic lines grew 5.5 percent in August, gust increased 3.1 percent over same growth in Bangkok from nascent more than twice the 2.2 percent gain month in 2005, giving the airport 1.2 textile exports out of Burma and in capacity, according to the Associ- million tonnes over the first eight Cambodia. ation of Asia-. … months of the year, 5.8 percent A more prominent role for Suvarn- Private express delivery companies in ahead of last year. … Adding to its al- abhumi would be a good deal more China protested a new version of a ready tough customs procedures, In- challenging to attain. “To put it in a postal law they said would give over- dian Customs started requiring all league with Singapore or Hong Kong whelming market power to state- airlines to file import manifests prior as a hub would be a bit of a stretch,” owned China Post, including a mo- to aircraft arrival at all Indian air- Ringheim said. nopoly on small parcels and compul- ports. … Nippon Cargo Airlines Existing maindeck capacity may be sory payments to subsidize postal ser- took its third 747-400 extended-range sufficient to absorb the growth from vice. The Conference of Asia Pa- freighter from Boeing, the first it has Burma and Cambodia, but it is cific Express Carriers issued a taken under its “Phoenix Project” re- nowhere near levels usually associat- statement saying the law would “sti- structuring under an independent ed with regional hubs. This is unlike- fle healthy competition.” … TNT business model. ■

November 2006 AirCargoWorld 21 22F1-TrackingINT 10/20/06 12:26 PM Page 22

Feature Focus: Tracking Technology

22 AirCargoWorld November 2006 22F1-TrackingINT 10/20/06 12:26 PM Page 23

Air’s Technology Exceptions by Ian Putzger Integrators may be espite reservations

across the indus-

chipping into RFID, try about the use

of radio frequen- but in air freight cy identification technology in air cargo,

several of the express operators are forging shippers andDahead with the new technology for track- ing. Already, TNT proudly announced last forwarders look December it had completed a pilot phase and was ready to integrate RFID equip-

ment into its existing systems for ship-

for exceptions ment tracking.

November 2006 AirCargoWorld 23 24,25 10/18/06 7:31 PM Page 1

www.boeing.com 24,25 10/18/06 7:32 PM Page 2

The new 777 Freighter is a powerful extension of Boeing’s leadership in providing over 90%

of the world’s freighter capacity. In addition to more than 100 tons of payload, the 777 offers operators unmatched freighter efficiency and range. Enabling customers to fly more cargo to more places, more profitably. To take their freight business further every day. 22F1-TrackingINT 10/20/06 12:27 PM Page 26

Feature Focus: Tracking Technology

ir France Cargo and KLM Cargo, whose parent companies merged Outside the integrator camp in May 2004, selected Traxon to provide electronic air cargo there is decidedly less enthusiasm transaction services to Customs in Canada and France. among air freight technology ex- Since June, Air France Cargo has complied with the Canadian perts for RFID. “There is a lot of talk rules by using Traxon’s Global Customs Service, which processes about RFID, but it’s not yet proven all the carrier’s transactions electronically with the Canada Bor- technology,” said Christopher der Services Agency. The carrier will soon add U.S. Customs to Shawdon, vice president and part- the service. ner of Logistics Solutions at Unisys. Pascal Morvan, senior vice president cargo operations and logistics at Traxon, the conduit for electronic A Air France said advance electronic submission of shipment data world- data flow between some 3,000 for- wide is a foregone conclusion, but it would spread with differing policies warders and about 90 airlines, is and technologies. Which is why the airline and Traxon developed a glob- not anticipating any impact from al system. RFID on its architecture in terms of message standards or file sizes for the time being. Air Finds Customs The go-slow approach contrasts “We now use one standard message set with Traxon, which makes sure sharply with a large swath of the lo- that the data is delivered to the required Customs in the correct format gistics industry, where big retailers and on time,” said Morvan. such as Wal-Mart, Target Stores and Air France Cargo is also using Traxon services to communicate elec- Germany’s Metro have advanced tronically with French Customs. ambitious RFID mandates for their Air France Cargo and KLM Cargo are now fully integrated and known suppliers and logistics providers officially as the “Joint Cargo Team,” which posted combined turnover have scrambled to help the shippers last year of $3.6 billion. ■ meet the demands. In the air freight industry, a more immediate objective for shippers “We do only the exceptions. You of people want regular e-mail up- and forwarders is getting informa- can’t trace every shipment. We dates every morning and alerts if tion in real time. Some airlines are don’t have the time to do that,” something happens during the there, but quite a few still have said John Mascaritolo, director of day,” said Bob Imbriani, vice presi- some way to go, according to Bob global logistics of electronics ship- dent of international operations of Scribner, senior manager of global pers NCR. Winnboro, Texas-based forwarder logistics of Fairchild Semiconduc- “Shippers look for exceptions. Team Worldwide. tor. “A lot of carriers are still strug- We work by exceptions,” said Elio Shawdon says Unisys was sur- gling in that area. About 50 percent Levy, vice president of sales and prised by the strong demand for full of our carriers are adequate to excel- marketing of New York-based for- status history of shipments among lent, the other 50 percent are not warder Logfret. Like Mascaritolo, he users of the Cargo Portal System, the there yet,” he said. finds it impossible to keep tabs on booking portal Unisys developed for The real-time information is most every shipment. carriers , Northwest important to shippers and con- Airlines and and which signees when it comes to problems. ccording to Scribner, demand has since been rolled out to more For most shippers – and, by ex- Afor in-transit visibility increases airlines. CPS added functionality to tension, their forwarders – the fo- the closer people are to the cus- display the full shipment history cus is on exception reporting. They tomer. He wants to see the excep- some 18 months ago. are far less concerned with regular tions but customer service staff want Shipping managers and for- status updates in a field where to be able to track every shipment. warders may not want to track every speed of delivery is supposed to Second to exception alerts come shipment, but they do use tracking gloss over deeper issues in supply daily or weekly reports, as far as traf- services extensively. chain management. fic managers are concerned. “A lot At CPS, the tracking functionali-

26 AirCargoWorld November 2006 Project1 10/12/06 11:07 AM Page 1

© 2006 Continental Airlines, Inc.

ClimateSecure. JUST WHAT THE DOCTOR ORDERED.

ClimateSecure preserves the quality and potency of sensitive pharmaceuticals with temperature control and priority handling.

Today’s pharmaceuticals require precise temperature control and special handling. Our ClimateSecure Service provides both, along with Continental’s legendary reliability. For more information or to book a shipment, contact your Continental Airlines Cargo sales manager or visit cocargo.com.

Work Hard.

Fly Right.SM 22F1-TrackingINT 10/20/06 12:27 PM Page 28

Feature Focus: Tracking Technology

ty is used six times as often as the ables forwarders to send status en- formation. Logfret tracks shipments booking function. That’s although quiries and receive an electronic re- it wants to monitor through individ- CPS users can only track shipments ply from the airline. In the “e-status ual statues requests. on the six member airlines via the update” service, airlines send up- The forwarder’s mainframe is site, a figure which is not likely to dates automatically whenever mile- not hooked up to Traxon. “I don’t change. stones are reached. know if it would be a big advan- For airlines that are tage to connect our system with not able to generate Traxon. Now we just have to key in n the air freight industry, proactive status up- the air waybill number. In a way, it I dates, Traxon offers a would be nice to be linked to a more immediate third package where them. We could get automatic objective for shippers and the network provider alerts if something goes wrong, but forwarders is getting sends status requests to we have not really seen a need for the carrier in question that,” said Levy. information in real time. at regular intervals. The e-status update package and In the e-status up- its lesser cousins cover the path of a date package, the for- shipment as long as it is in the “I think it will stay that way. You warder can pick the milestones for hands of the airline but there are can go to any number of airline Web which the company wants to be sent black holes when it is handed over sites to track shipments. Syntegra’s status information. Alternatively, to a third party, such as a trucker or CCX.com gives you about 60 carri- the forwarder can choose to receive a handling company. ers. There’s no value in adding that only alerts triggered when ship- Traxon offers an Internet-based to the portal,” Shawdon said. ments fail to pass a milestone within software package which enables Users’ appetite for tracking infor- a given time. these entities to access a web page mation is going up. Traxon recorded where they can enter the status in- a 26 percent increase in track-and- lthough this service accounts formation and transfer it to the air- trace messages in its network during Afor a lot of the tracking message line through the network provider. the first eight months of this year. traffic through Traxon, not every- Airlines can also use this module for According to Florence Bocca, mar- body sees merit in having dense in- in-house updates, Bocca says. keting and external communica- tions manager, track-and-trace mes- sages constitute about two-thirds of the electronic communication be- tween carriers and airlines. “For one shipment only one air waybill mes- sage is transmitted, but then usually more than five status events are ex- changed to trace the concerned shipment,” she said. A lot of this volume is generated in the framework of automatic sta- tus updates whenever shipments pass defined milestones. Across its spectrum of access channels — from host-to-host to web-based access — Traxon offers three types of tracking service. The basic “e-status” package en-

28 AirCargoWorld November 2006 22F1-TrackingINT 10/20/06 12:27 PM Page 29

Feature Focus: Tracking Technology

The customs interface tends to ed by Unisys, in which it polled 52 debate about real-time status up- be more of a black hole for shippers of the top 100 global shippers in dates boils down to the question and forwarders than is the han- terms of intercontinental trans- how quickly the carriers enter the dling and trucking arena. The ap- portation spend in person-to-per- data into the system once a ship- petite of customs officials for data son telephone interviews with se- ment reaches a milestone. “The time has gone up sharply in the wake of nior executives, indicated shippers from the moment when, for exam- tighter security regulations, but are impressed by the IT prowess of ple, Lufthansa sends a message they remain averse to sending out the integrators with real time infor- through our system to Schenker information. mation capability and are critical of takes two seconds,” she said. There is, however, a glimmer of the lack of IT integration across the Shawdon is not sure how many light on the horizon. The Canada supply chain in the forwarder-air- shippers really want their tracking Border Services Agency is sending out line axis. information in real time, at least not electronic status updates on ship- “Respondents indicated that the when it comes to connections other ments in the clearing process to par- airlines and freight forwarders do than EDI. “You don’t want to put ticipating carriers. “CUSRES” mes- not manage date entry very well ‘on too much information in real time sages are sent out by the CBSA to no- the other side of the world’ — espe- on the Web,” he says, pointing to tify carriers about errors, risk assess- cially when something goes wrong,” potential risks for valuable ship- ment notices and acknowledgements. the study concluded. ments if outsiders gain access to the A recent shipper survey conduct- From Bocca’s vantage point, the data flow. ■

WHATEVER YOU NEED TRANSPORTED YOUR CARGO IS ALWAYS IN POLE POSITION.

For us, simply fast is not fast enough. That’s XIZXFUVSODBSHPBSPVOETJHOJÝDBOUMZ GBTUFS than most other freight airports. One reason is our 3 runways system, on which we can IBOEMF JOUFSDPOUJOFOUBM OPOTUPQ ÞJHIUT JO parallel. It’s faster than a pit stop – 24 hours a day, every day. With that level of commitment we not only secure our customers’ satisfaction, but it also won us a coveted Grand Prix title: the Air Cargo Excellence Award 2006.

www.cologne-bonn-airport.de

November 2006 AirCargoWorld 29 30Commentary_PaperINT 10/20/06 12:28 PM Page 30

CommentaryAirCargo

E-Freight:Paperless Jens Tubbesing • President • Cargo Network Services

ach year our industry flies the equivalent of airlines, forwarders and customs, but also the commit- 39 747 freighters worth of paper around ment of governments. Specific legislative requirements Ethe world. Doing away with paper can save within the test countries and necessary systems to support $1.2 billion dollars in direct operating costs. the e-freight process also must be in place. These figures illustrate only a piece of the story. IATA also has begun identifying the systems and service Our industry remains largely paper dependent, and providers, which support the e-freight process. A database that is a problem. Without the accompanying paper, a of vendors and their capabilities is being compiled. shipment cannot move smoothly through the supply Missing from IATA’s initiative, without which the pro- chain. Handling goods and the paperwork separately adds ject can never succeed, is the “bottom up” push for imple- to the cost. mentation. Our industry is capable of responding with Further complicating the problem is the need for multi- speed, creativity and pragmatism, but only when forced ple parties to capture information at different points in to do so by legislation. the supply chain, inevitably a source for error and delay. The adoption of advance notification requirements by The main objective of IATA’s e-freight program is to re- the U.S. in the wake of September the 11 terrorist attacks move the requirement to transport paper with the ship- is a case in point. Many of us said then that advance noti- ment. IATA’s goal is to have carriers and forwarders pass the fication was impossible. Yet, we did it and today this re- required information electronically along the supply chain. quirement functions adequately. This does not mean there will no longer be a require- Help from the industry is needed if we’re going to ment for paper documents. But when that requirement achieve our goal of a paper-free environment. The Mes- exists, the need can be met by printing an electronic sage Improvement Program is the first opportunity for the record where it is needed as opposed to producing a piece industry to participate. of paper that has traveled with the shipment. What are the potential benefits of going paperless? ubstituting electronic data for paper can only work if Speed. Passing information electronically ensures that Sthe data is correct. Two key messages already in use the goods never have to wait for the paperwork. Provid- are the Master Airway Bill and House Airway Bill mes- ing information earlier can expedite certain shipping sages. We have some data on the “correctness” of the processes, such as Customs’ risk assessment. Ultimately, FWB from Cargo 2000, and it reveals we need to improve. going paperless will enable shippers to pre-clear most Therefore, we will launch a program whereby airlines can shipments before arrival. measure the quality of message data received, and then work Simplification. Capturing data once can reduce dupli- with forwarders to find ways to improve the overall quality. cation and errors. Forwarders, which don’t send EDI data to airlines, Cost Reduction. Eliminating unnecessary processes and should consider implementing this program, as should getting accurate data to the right people faster can reduce airlines and handling agents. And forwarders should en- operational costs. gage shippers in this initiative. Security. Having accurate data in an electronic format New or expensive technology is not required for the can help meet advanced information requirements of reg- program. There are numerous options available that will ulatory authorities. enable businesses to send messages today. E-freight success can only be achieved if all parties are nly through an industry wide initiative can these working together for a common goal. You don’t need Obenefits be realized. IATA has led this initiative. “perfect conditions” to get started. The first pilot trials to prove the concept are slated for the end of 2007. Meeting the target date has proved chal- Excerpted from a presentation at the International Air Cargo lenging, however, as it not only requires volunteers from Forum, Calgary, Alberta, September 2006.

30 AirCargoWorld November 2006 30Commentary_PaperINT 10/20/06 12:29 PM Page 31

CommentaryAirCargo

E-Freight:Pulp Fiction Bill Gottlieb • President • David Kirsch Forwarders

ATA’s headline grabbing e-freight strategy How do we begin? For starters, we may for now want to hopes to “eliminate the need to transport pa- shelve a good chunk of IATA’s e-freight business plan. It is Iper documents for air cargo.” Is it realistic to time IATA strategists realize its primary e-freight objective believe that IATA’s ambitious e-freight project as is plain stupid. IATA’s e-freight focus should be placed on structured currently will succeed? Will it benefit what is do-able. those of us in the global air cargo supply chain? Here are a few suggestions that won’t result in bil- Each year, IATA claims, the air cargo industry fills 39 lions of dollars in savings by going paperless. But they 747 freighters with paper wasted on documentation. could help. What IATA refers to as paper waste represents increments of up to a few dozen sheets inside an envelope and sta- ■ Gather support from broad industry groups, such pled to the air waybill and cargo manifest. IATA, FIATA, the World Customs Organization, the Paper holds key commercial information, which is United Nations Conference On Trade and Develop- shared with the buyers, shippers, forwarders, carriers, in- ment and the Shippers Councils. Urge countries, surers, customs brokers, as well as many government agen- which have yet to ratify Montreal Convention 1999, cies. Paper provides valuable information at origin for ex- which allows for the promotion of global e-com- port control; in transit for in-bond security; at destination merce in air transport; for customs, agriculture, security, as well for the receivers. ■ Go plain paper: Get rid of the air waybill as a form-set IATA also claims paperless cargo processing could save document. Require carriers to accept laser-printed the industry $1.2 billion each year. plain paper air waybills; Who saves? Would the actual dollar amount saved – ■ Go paper free: (forwarder to air carrier) Allow for the when you drill down to the consignment level – be worth air waybill and the cargo manifest to be delivered it to those in the supply chain? Outside of IATA, there “electronically” to the airline at origin; seems to be little enthusiasm among various partners in ■ Go paper free: (carrier to origin forwarder) Allow the global supply chain to paperless. air carrier to accept the cargo and return a “signed” IATA claims e-freight will reduce shipping time by 25 air waybill back to the forwarder electronically. percent. A six-day in-transit shipment will be reduced to ■ Go paper free: (carrier to destination forwarder) Allow just over four days with e-freight. for the air carrier to electronically pre-advise and sim- Speed may be king in air freight, but it comes at a price. ilarly deliver to the destination forwarder/customs Clients want their cargo “when they need it.” There are broker or consignee, the arrival manifest and other many reasons for a consignee’s inability to accept prompt carrier or customs transport documentation required delivery of goods. It’s less about documentation and more upon arrival by the consignee; about logistics. Going paperless will not address these ■ Go paper free for other transport documents. Explore business considerations, which affect the length of time how other documents, such as a dangerous goods goods are in transit. certificate can be electronically delivered;

believe in e-commerce. I believe in harnessing technol- All sides, including IATA, must work together if the air Iogy to provide a higher level of service to my clients cargo industry really wants to benefit from various aspects and improve the efficiency of my operation. of e-commerce, including savings derived by going paper- IATA must awaken to the reality of the cargo market- less. We must provide benefit to the customer of a more place, and rethink e-freight by partnering with the for- efficient and cost effective supply chain. warding community. Simply put, forwarders possess the intimate understanding of the needs of the commercial Excerpted from a presentation at the International Air Cargo traders they serve. Forum in Calgary, Alberta, September 2006.

November 2006 AirCargoWorld 31 32F2-MiddleEastINT 10/20/06 12:29 PM Page 32

Region Focus: Middle East

Cargo’s by Robert W. Moorman Hot Market The Middle East is defying the wisdom that business growth demands stability, and the real economic expansion may just be getting started

32 AirCargoWorld November 2006 32F2-MiddleEastINT 10/20/06 12:30 PM Page 33

here were widespread fears in the trade world when the

brief but brutal Israel-Hezbollah fighting at its peak shut

down Lebanon in August that the conflict would spill out

into the rest of the region, undermining what has become

the air freight industry’s fastest-growing market. TIf air trade slowed down at all, however, few in the air cargo busi- ness noticed. Instead, the continued expansion of airborne shipping in

the region from North to the Persian Gulf and beyond was the

latest example of the resilience of business in the Middle East to the re-

gion’s political conflicts and the rapid up-and-down swings of oil

prices that drive many of the region’s national economies.

November 2006 AirCargoWorld 33 32F2-MiddleEastINT 10/20/06 12:30 PM Page 34

Region Focus: Middle East

Top MidEast Airports

WORLD RANK AIRPORT COUNTRY TONNAGE % CHANGE 18 Dubai (DXB) UAE 1,314,904 12.5 After leading the world with inter- 54 Bahrain (BAH) Bahrain 334,831 10.8 national air freight growth of 14.6 in 56 Tel-Aviv (TLV) Israel 314,810 (7.9) 2005, more than four times the 75 Cairo (CAI) Egypt 232,548 6.8 worldwide growth rate, Middle East 77 Sharjah (SHJ) UAE 229,472 16.4 freight traffic was up 16.8 percent in 84 Jeddah (JED) Saudi Arabia 221,347 0.5 the first eight months of this year, 87 Abu Dhabi (AUH) UAE 215,283 31.5 according to the International Air 92 Riyadh (RUH) Saudi Arabia 194,382 1.5 Transportation Association, primari- 105 Kuwait City (KWI) Kuwait 161,838 (1.0) ly due to the booming economies in 135 Amman (AMM) Jordan 101,208 5.4 oil producing countries. For 2005, 163 Muscat (MCT) Oman 74,234 8.2 the region accounted for somewhere 170 Beirut (BEY) Lebanon 63,265 (0.2) between 5.8 percent and 7 percent 195 Dammam (DMM) Saudi Arabia 49,634 3.2 of the world’s tonnage and nearly 5 Source: Airports Council International percent of the world’s revenue tonne-kilometers. gressive freight strategies into their must become more efficient and In August 2006, the Middle East fleet plans in a bid to duplicate the reign in costs. “For us, the wildcard led all regions for cargo growth at enormous and continuing growth of is the price of oil,” said Ram 13.1 percent while international Dubai-based Emirates and the grow- Menen, divisional senior vice presi- freight worldwide grew 4.7 percent ing reach of Emirates SkyCargo. In dent of Emirates SkyCargo’s Menen, over the same month a year ago. addition, “there are an increasing as well as the ongoing threat of ter- And over the past three years, annu- number of airlines consolidating car- rorism worldwide. al economic growth has surpassed 5 go in their hubs and re-distributing The region’s air cargo business percent in the region and is expect- (it) worldwide,” said Majdi Sabri, still lags behind its North American ed remain steady. IATA’s regional vice president for and European counterparts in au- That growth has governments and Middle East North Africa. tomation and investing in IT sys- several airlines betting heavily on tems. Electronic air waybills, for ex- the potential for long-term air cargo xperts say the rapid growth in ample, have been around for around growth in the region. Several Middle Eairline business in the region, 17 years. “But only 15 percent of East carriers have decided to set up and the longer reach by carriers into cargo shipments [in the Middle East] independent cargo units with their more distant markets, is putting make use of them,” said Sabri. own profit centers and carriers such stresses on some airline operations. Some major challenges are en- as Gulf Air, Qatar Airways, Etihad Like its counterparts elsewhere, demic and longstanding to the Mid- Airways and others have built ag- the Middle East air cargo market dle East air cargo market. “Restricted traffic rights remain the biggest chal- lenge, coupled with inconsistencies and incohesiveness in customs pro- cedures for inbound and outbound cargo clearance,” said Issa Baluch, CEO of Dubai-based forwarder Swift Freight International. In addition, customs procedures in many cases make moving freight on longer trade routes easier than shifting it around the Gulf region. “The Middle East is kinder on inter- national border clearance that is on intra-region clearance,” said Baluch, the immediate past president of the

34 AirCargoWorld November 2006 Project5 8/9/06 10:33 AM Page 1 32F2-MiddleEastINT 10/20/06 12:30 PM Page 36

Region Focus: Middle East

Emirates Climb Emirates SkyCargo’s annual freight tonnes carried tier for air cargo,” logistics service provider for the 15th 300,000 said Menen. Asian Games in Doha in December. Two-year-old Eti- However, the growth of the Mid- 250,000 had Crystal Cargo, dle East’s own national carriers isn’t the freight division of necessarily being met by like-minded 200,000 , has expansion among foreign airlines. more than tripled its “The issue here is that there are a 150,000 cargo shipments from lot of airlines and capacity and not 100,000 20,000 tonnes in its enough cargo demand,” said Gun- first full year to more nar Loehr, cargo manager for 50,000 than 70,000 tonnes Lufthansa Cargo. Lufthansa trans- in 2005. Ingo ports 50,000 tonnes of cargo be- 0 ’00 ’01 ’02 ’03 ’04 ’05 Roessler, vice presi- tween the Middle East and its Frank- Source: IATA dent cargo said the furt and Cologne freighter hubs. goal is to transport Sharjah, 25 miles northeast of International Federation of Freight 150,000 tonnes of cargo in 2006 with Dubai, remains a main transit point Forwarders Associations. “In an ideal a fleet of three A300-600 freighters. for Lufthansa freighter flights to world, it should be the other way Etihad Crystal Cargo’s market share Asia. But the carrier has no immedi- around, in order to promote a re- at its hub at Abu Dhabi International ate plans to enhance its cargo opera- gional trading bloc.” Airport jumped from 28 percent in tion there. Despite the generally restrictive 2004 to 50 percent this year. regulatory environment, there are “You only have to study the IATA everal airports in the Middle some success stories. The open skies growth table of the last decade to SEast are enhancing their cargo policies of the United Arab Emirates, identify the strategic value of the handling capabilities, but none are Kuwait and Lebanon have helped region as both a transit gateway for growing as impressively as Dubai. drive air cargo growth. trade between East and West and an In 1997, the Dubai Cargo Village In 2005, Dubai and Bahrain posted emerging market for tourists,” said handled 400,000 tons of cargo; by growth rates of 12.5 percent and 10.8 Des Vertannes, head of cargo for 2005, that was up to 1.3 million percent, respectively. Not only are Gulf Air. tonnes, and the figure is expected to these policies contributing to growth Vertannes said Gulf Air Cargo rise to 1.5 million tonnes in 2006, of existing carriers and forwarders, will “seek to exploit its network” of according to the Dubai Department but “new entrants are also jumping 16 destinations served from its two of Civil Aviation. on the bandwagon,” said Baluch. strategic hubs in Bahrain and Mus- To handle the growth, the Dubai The growth of Emirates SkyCargo, cat in coming months. Mega Cargo Terminal is being built. the emergence of Qatar Airways and Elsewhere there is cargo-related It is expected to handle 2 million Etihad Crystal Cargo as well as the activity built on the growing pull of tonnes of cargo annually by 2014 revitalization of Gulf Air Cargo add Middle Eastern logistics companies and 2.7 million tonnes by 2018. to the region’s strength as a center in worldwide supply chains. There are bigger projects under- for cargo and passenger service. Doha-based Qatar Airways signed way in the region. Dubai Interna- “We’re are ideally placed. And the a global agreement with forwarder tional Airport is in the midst of ma- structure being created here is for un- GAC Logistics recently for the move- jor expansion to increase its passen- restrained growth,” said Menen. ment of cargo between Doha and ger and freight handling capacity. Dubai’s star will shine even more than 70 destinations of the air- The so-called Dubai Logistics City, brighter over the next decade with line. Bill Hill, GAC group vice presi- an air cargo and logistics hub, will the projected increase in north- dent for logistics services, said the eventually allow for the handling of south trade and the expansion of partnership makes sense because up to 12 million tonnes of cargo perishables traffic out of Africa. Doha represents a prime logistics annually. DLC is one element of “Africa will definitely be a new fron- market for GAC, which is the official the massive $8.1 billion Dubai

36 AirCargoWorld November 2006 32F2-MiddleEastINT 10/20/06 12:30 PM Page 37

here’s usually nothing worse for trade than armed conflict, but the fact is the ongoing strife in the Middle East are feeding large volumes of air cargo business. Carriers, forwarders and related business- es benefit by shipping materials to the region to support the conflicts or reconstruction efforts or World Central project, which in- the oil business infrastructure. cludes runway and passenger termi- “Growth in the region’s air cargo trade contin- nal expansion as well as a new road ues unabated and seemingly immune from the con- connecting the airport to the Dubai T flicts in Iraq, Afghanistan and more recently, World Central. Lebanon,” said Gulf Air cargo chief Des Vertannes. The new $70 million Dubai In fact, the traffic related to those conflicts is often en- Flower Center adds to Dubai Air- tirely separate from the normal commercial trade flows port’s cargo handling capability by and provides opportunities for carriers not based in the ensuring the so-called cold-chain in- Middle East. “The U.S. based carriers that provide logisti- tegrity for perishables. The DVC will cal support in the form of CRAF (Civil Reserve Air Fleet) be able to handle 180,000 tons of cargo flights have fared well in the region,” said Robert perishable products a year, accord- Dahl, project director of the Seattle-based Air Cargo ing to Sheik Ahmed bin Saeed Al Management Group. Maktoum, president of the Depart- ment of Civil Aviation and chief ex- ecutive of the Emirates Group. Per- Military Moves ishables account for 15 percent of Evergreen International, World Airways and Kalitta world cargo and the market is grow- Air have are among the beneficiaries. ing nearly 15 percent per year. Kalitta flies 170,000 pounds of mail daily between Airport development projects else- Newark and Bahrain on its 747 freighters. Kalitta sub- where in the Middle East have im- contracts the actual delivery to DHL, which drops of portant air cargo implications. mail at seven destinations in Iraq, two in Afghanistan The $6.8 billion expansion of Abu and one to Kuwait. Kalitta also operates one 747 Dhabi International Airport will in- freighter a week between New York’s Kennedy Interna- clude new cargo facilities capable of tional Airport, Bahrain and Dubai. handling 2 million tonnes of freight Elsewhere there is guarded optimism. Air cargo to per year. Several terminals will be Beirut is resuming slowly following the August 14 built to accommodate Etihad Crystal cease-fire between Hezbollah and Israel. Air- Cargo’s growth plans. And there is lines now provides three-times-weekly 747-400 the all-new Doha International Air- freighter service between Luxembourg and Beirut. port, which is expected to have am- The cargo market in and around Lebanon is show- ple cargo facilities as well. ing marginal recovery. Recovery will depend largely on Middle East cargo airlines also are whether the cease-fire holds and reconstruction in the investing in the future. region continues. In time, all operators should resume Last month, Emirates formalized air cargo service to the region, cargo experts predict. ■ an order announced at the Farnbor- ough Air Show for 10 747-8Fs worth $2.8 billion at list price. The new air- SkyCargo’s widebody fleet of nine Airbus equipment, carried 15 mil- craft, which start arriving in 2010, 747 and A310 freighters. lion pounds of cargo. will be used to enhance cargo-carry- Other passenger carrying airlines Qatar Airways cargo traffic nearly ing capabilities of Emirates SkyCargo are getting into the spirit. Gulf Air doubled in 2005 and has grown sev- to 28 destinations. climbed to eighth position out of en-fold since 2001. Now 39th on the The airline, which carried a mil- 98 scheduled passenger carriers and IATA list of carriers for international lion tonnes of cargo and generated 31 all-cargo airlines operating in air cargo traffic, the airline operates $1 billion in freight revenue for the and out of Dubai, according to the only one A300-600 freighter on fiscal year ended in March, also or- Department of Civil Aviation. In routes to Europe, India and Africa, dered eight 777 freighters. These air- 2005, Gulf Air, which operates a but it has 20 777s on order, includ- craft will supplement the Emirates combined fleet of 767s and various ing one freighter edition. ■

November 2006 AirCargoWorld 37 38F3-PalletsINT 10/20/06 12:31 PM Page 38

Feature Focus: Ground Handling

Building More Boxes by Ian Putzger

38 AirCargoWorld November 2006 38F3-PalletsINT 10/20/06 12:31 PM Page 39

n air cargo industry pressed to meet the contradictory demands of service and ef-

ficiency increasingly is finding the answer in the basic building blocks of ship-

ping. Industry experts say more forwarders are enhancing services by building up

completed containers and pallets. AThe action is changing the way forwarders and airlines are handling cargo and could have far reaching ramifications for carriers and airports.

Buffeted by financial pressure, carriers have whittled down their cargo activities to core functions

in recent years. In the process, many airlines have outsourced functions such as ground handling to

third-party providers. On top of this, carriers are facing an encroach- More air forwarders ment from the other side – their customers. are finding that Some forwarders are pushing for further re-

duction in the airlines’ activities, as they see ad- building up their vantages in building and breaking down pallets own pallets is a fast and containers themselves.

“Building ULDs is a main task of our gateway route to lower costs, system,” said Rick Whitaker, vice president for better service U.S. gateways and international services at BAX

Global. “Probably half the weight of what we move out of the United States moves in ULDs.”

A study produced this spring by Aviainform indicates that many cargo agents, especially large for-

warders, expect to see further growth in the volume of built-up pallets, or BUPs, they turn over to air-

lines. Between April and May, the Frankfurt-based air cargo research and consulting firm interviewed

decision makers at 56 forwarders, including 28 large multinational players, which account for some

50.6 percent of the global air cargo volume.

For the cargo industry, this means larger forwarders can grow further, going beyond the power of

buying up large volumes of space into an area where they can lower the airline’s own handling costs

and smooth the flow of goods through networks.

November 2006 AirCargoWorld 39 38F3-PalletsINT 10/20/06 12:32 PM Page 40

Feature Focus: Ground Handling

uehne + Nagel uses commer- this means an operator will be able to Seoul to . cial lift mainly, supplemented reach nearly any industrial center in One chief benefit of the build-up Kby long-term arrangements Western Europe from Luxembourg or for forwarders is the time saved. For for dedicated capacity. production sites in Poland or the an industry where delivery measure- Still, building its own units is a reg- Czech Republic from Frankfurt with ments can be based on hours, any ular focus. “BUPs are definitely a firm- overnight truck service. time saved offers forwarders a com- ly integrated part of our dealings with “If you apply these numbers to in- petitive advantage. carriers,” says Rainer Wunn, senior tra-U.S. distribution, it becomes very Giving complete ULDs to the air- vice president for the United States at clear why cities such as New York, lines means that they can deliver the Switzerland-based forwarder. “I Chicago or Los Angeles have stronger their cargo closer to departure times. think it’s definitely the way to go.” than market growth rates in in- and They also can get their freight faster The concept goes hand in hand outbound freight,” Aviainform said. to the consignee, thanks to reduced with a forwarder’s gateway strategy, waiting times at the airline terminal typically. oday, building-up full pallets at destination. They do not have to Dirk Steiger, managing director of is more common in the Asia- wait for the airline to break down Aviainform, says he first became TNorth America sector, where the ULD first to get the individual aware of the rise in BUP traffic as he the practice accounts for 48.6 percent shipments for delivery. saw changes in the gateway policy of of total volume, followed by Euro- Control is another key advantage, large forwarders at Frankfurt, which pean exports to Asia at 43.5 percent. according to forwarders. “We control had led to an increase in consolidat- On the return sector between Asia the cargo, since we load the contain- ed traffic from the airport. and Europe, BUPs account for 41 er at the gateway station and break it “It wouldn’t make sense to oper- percent of the total traffic, while down at the other end,” Wunn said. ate a gateway and still hand loose they account for 38.3 percent of U.S. Steiger added containers are less cargo to the airline,” said Donna air shipments to Asia. likely to be left behind if an airline Letterio, country manager for Cana- According to Aviainform, the faces capacity issues at departure. da of DHL Global Forwarding. world’s top BUP route in terms of So the chances of flying as booked Aviainform projects a significant tonnage is Hong Kong-Los Angeles, are higher. rise in global BUP volumes because followed by to Chicago and Whitaker said consolidating traffic of the anticipated ex- tension of road feeder Pallet Boxes services around major gateways. Today, the majority of shipments are collected on average within 125 miles (200 >33.0% <41.0% >48.8% <39.7% >43.5% kilometers) of a gate- <38.3% <38.3% >21.8% >48.8% way, according to the <16.3% BUP study. <35.8% “However, when ask- >22.4% >11.6% ing what’s going to hap- <25.2% <16.1% >15.0% >25.5% <16.3% >11.7% pen in only five years <10.8% from today, the numbers <20.8% >11.3% >24.5% will increase up to a ra- <12.0% dius of approximately >25.5% <16.1% 498 miles (800 kilome- ters) from the forwarder’s >10.4% centralized gateway,” the <13.2% study says. In Europe, Source: 2006 aviainform

40 AirCargoWorld November 2006 38F3-PalletsINT 10/20/06 12:32 PM Page 41

Feature Focus: Ground Handling Top 20 BUP Trade Lanes 40

20 in BUPs also yields more Schenker Germany to attractive rates. But most Schenker Bensenville, forwarders that participat- and they distribute in Thousands of tonnes Thousands ed in the Aviainform 0 North America. study played down that “That means less point. “Nobody wanted to work and lower costs SEL-CHI FRA-CHI TYO-CHI FRA-SEL SEL-LAX LON-CHI TYO-TPE LAX-TYO TYO-FRA TYO-LAX HKG-CHI SHA-CHI SCL-MIA LAX-LON TYO-BKK FRA-NYC HKG-LAX SHA-LAX TYO-HKG say much on this one. TYO-AMS for the airline,” he said. Better price-service mix Source: 2006 aviainform There is other less- was among the top five positive ramifications. responses, but it was nowhere in the ume to do it, we’re always for it. Forwarders that expand their BUP top spot,” said Steiger. There is no downside. It saves us la- traffic may concentrate more of Steiger noted forwarders can cut bor. It’s very efficient for us as well,” their business with specified carriers. costs further because airlines can- said Claude Morin, president of Air That means less spot market busi- not levy charges for containeriza- Canada Cargo. ness, which sounds like good news tion when they receive BUPs. In ad- U.S. freighter operators Polar Air unless you’re the carrier with the ex- dition, the agents save at origin, Cargo and Northwest Airlines move tra capacity on a given day. “BUP is where they use a trucking service to customer-built ULDs mostly on their primarily with our preferred carri- the gateway instead of slotting their 747 freighter flights between Asia ers,” Whitaker said. cargo through the local airport sys- and North America. And airports may feel the impact tem. This means all they need at Lufthansa Cargo has a special BUP as well. origin is a trucking station, which, certification process for forwarders An airline or handing agent that typically, costs a fraction of the and has improved its offerings to gets more cargo boxed ready for costs associated with a presence on BUP customers. As part of the effort, shipment has less need for roomy an airport. handling times for BUPs were re- warehouses for building or breaking For large forwarders with sufficient- duced by 35 percent on average. At down pallets and containers. An air- ly high shipment counts, this truck- New York’s Kennedy airport, the line’s needs shift more towards flow- ing service approach provides consid- handling speed improved 75 per- through facilities, which could bring erable cost savings, Steiger said. cent, and the import procedure at down on-airport costs significantly, Still, it is not all positive for the Frankfurt now takes half as long as Steiger said. forwarder. before, the airline says. The practice spurs more growth Reducing the use of the local air- Not everybody loves the concept, at today’s large hubs while impact- port system may diminish the role however. ing expansion plans of smaller air- of the forwarder’s local sales manag- “Not all carriers want you to do ports at the edges of the cargo mar- er, who is primarily funneling traffic that. If they have one flight a day ket. “Europe, Frankfurt, Amster- to the gateway under a BUP ap- out of a station, they want to con- dam, Paris and Luxembourg will proach. This could lead to an exodus trol the mix,” said DHL’s Letterio. grow faster than the general air of qualified staff at the local level, Morin said trying to maximize his freight market. Airports in the pe- Steiger said. loads makes sense in markets charac- riphery that have so far grown in The forwarder’s company culture terized by light volumes. “We some- step with the market will grow comes into play there to support the times have 100 tons plus on a flight slower,” said Steiger. gateway strategy. “Nine out of 10 ki- out of Germany. We couldn’t do that By the time the primary hubs like los that BAX exports (from the U.S.) without built-up pallets,” he said. Los Angeles reach capacity, the ques- go through the gateway system,” An airline may not be able to opti- tion will be which of the aspiring al- Whitaker said. mize its loads when leaving the ULD ternative cargo gateways can estab- building process to its customers, lish themselves. For those that do irlines welcome the rise in but life becomes a lot easier, Steiger not succeed, the odds of eking out a BUP traffic. “If they (the for- said. “You get one shipment with living on air cargo traffic will be Awarders) have enough vol- one air waybill, for example, from rather bleak, says Steiger. ■

November 2006 AirCargoWorld 41 42PeopleINT 10/20/06 12:33 PM Page 42

People

Awards positions at AlliedSignal as head of chief operating officer of USF Logis- the Honeywell Engines division. tics, where he was also president and FIATA honored Marlena Gold- chief operating officer of its reverse berger of Eagle Global Logistics in Third Parties logistics subsidiary. He started his ca- the United Kingdom as its “Young reer at shipper Frito Lay and later Freight Forwarder of the Year.” Gold- Golden Gate Lo- worked at CHEP and Menlo Logistics. enberger, a surface team leader for gistics: The Califor- IJS Global: The logis- EGL in the West Midlands, wins four nia-based forwarder tics operator named for- weeks of practical and academic named Antonio Le- mer Air Express Interna- training with the award. ung, a 35-year sup- tional executive Robin ply chain industry Dimes vice president of Airlines veteran, senior vice information technology. president for Asia, a A 30-year industry veter- Leung Atlas Air Worldwide position based in an, Dimes helped design Holdings: The parent of Atlas . Leung had been with AEI’s LOGIS IT platform Dimes and Polar Air Cargo promoted John APL Logistics since 1996, most recent- in the 1980s. W. Dietrich from general counsel ly as vice president for greater China. Eurinpro: The Macquarie Good- and senior vice president of human He earlier worked for the Fritz Cos. man Group, owners of the European resources to chief operating officer TNT Logistics distribution facilities operator, and executive vice president. Diet- North America: named Danny Peeters chief execu- rich, who succeeds Wake Smith, The logistics provider tive officer of the business. A 15-year joined AAWH in 1999 as associate hired James Coyle industry veteran, Peeters had been general counsel. Earlier, he spent 13 and Foster Thom- chief operating officer of the compa- years at United Airlines, seven of son IV as business ny. He joined Eurinpro in 2000 from those as a litigation attorney. development man- NYK Logistics, where he designed Tampa Cargo: The Colombian agers at the Jack- and engineered European supply carrier named Javier Londoño vice sonville, Fla., head- Coyle chain strategies for major multina- president of operations as the quarters. Coyle was tional companies. freighter operator split its operations with UPS for 22 years Grand Power Logistics: The and maintenance management into in positions includ- company named Nelson Wong two areas. Londoño, who had been ing ground hub man- managing director of Grand Power director of ground operations and lo- ager, air ramp man- Express International and Winton gistics, joined Tampa Cargo in 2003 ager, air hub manag- Chan general manager of the busi- after working in ground operations er and package center ness as the company moved its head- quarters from Canada to Hong Kong. for Atlas Air and . He earli- manager. Thomson Thomson er worked in operations for 20 years was director of busi- Both have more than 20 years experi- at Lufthansa. ness development with TSi Logistics ence in aviation and logistics in and before that was a sales manager Hong Kong and Southern China. Integrators at ShipXact and later was a logistics Cargo Connection Logistics: consultant at Manhattan Associates. The New York-based company FedEx: The board of director of Ozburn-Hessey Logistics: The named Raymond Hunt senior vice the parent of FedEx Express elected U.S. contract logistics provider president. Hunt, who had been con- Steven Loranger, chairman, presi- named Denis Reilly executive vice sulting to the company, is a former dent and chief executive officer of president of domestic transportation. operations manager for Digital Equip- ITT, to the board. Loranger has avia- The 23-year industry veteran had ment Corp. for the Asia-Pacific and tion experience, having worked as been senior vice president for North also worked at Mary Kay and at a di- chief operating officer of Textron, American logistics operations at vision of Limited Brands during his and before that in various executive Meridian IQ and before that was 25 years in logistics.

42 AirCargoWorld November 2006 42PeopleINT 10/20/06 3:45 PM Page 43

People

Manufacturing worked at MSAS Cargo and Exel Freight Management and most re- Boeing: The air- cently was a station manager at DHL. craft manufacturer named Larry Dick- Ground Handling enson vice president of sales at Boeing AFCO: Aviation Facilities Co. Commercial Air- named John Williams vice presi- planes. Dickenson, dent of airport management and de- 63, replaces Scott velopment at the airport facilities Dickenson Carson, who was company. With London-based Na- named president and CEO in Septem- tional Express Group in the 1990s, ber. Dickenson has led the commer- Williams helped lead the privatiza- The cial airplane sales group in the Asia- tion of Stewart Airport in New York. Pacific region for more than 20 years. AMB Property: The airport facili- Earlier, he was vice president of air- ties developer named Robert F. Magazine craft programs at Texas Air when it Caton vice president, leasing and was the parent of Continental and marketing director, based at New of Choice Eastern airlines and before that was York’s Kennedy International Airport. vice president of commercial sales for A 30-year industry veteran, Caton The only air cargo magazine Europe, the Middle East and Africa at had been president of a consulting with a subscriber circulation McDonnell Douglas. firm and earlier worked at several air- that is 100% direct request. lines and forwarders, includng NCA. Technology NAI Global: The commercial real estate company named Patricia QUALITY, QUALIFIED GT Nexus: The Lines its London-based director of AND QUANTIFIABLE California-based international business development. technology provider Her more than 20 years experience in The only air cargo named air forward- European property includes represen- magazine that is ing veteran Cary tation for corporate clients such as Dittmann vice DHL and Deutsche Post. ■ BPA audited president of sales. Dittman was most Advertiser Index Air Cargo World is the Number One Dittmann publication serving the air cargo recently executive Air France ...... CV2 industry. Published in 2 editions with a vice president of sales and marketing ...... CV4 worldwide audited circulation of more at Panalpina. He worked earlier in se- Boeing...... 24-25 than 36,000 business leaders, Air nior positions at Emery Worldwide, Cologne-Bonn Airport ...... 29 Cargo World delivers the highest quality American Airlines, SupplyLinks, Cir- Continental Cargo ...... 27 and most qualified readership of air cargo decision makers for your cle International and Freight Desk. Coyne Aviation...... 18 advertising message. OAG Cargo: The Dallas-Fort Worth Int’l Airport...... 3 Denver Int’l Airport ...... 10 online air cargo in- Dubai Cargo Village...... 35 Decision makers who need to know formation service IATA...... 11 read Air Cargo World. Reach the best audience in the world by advertising in named Louise Hat- Lufthansa Cargo ...... 14 Air Cargo World. field its United Miami-Dade Aviation Dept...... 4-5 Kingdom-based sales Polet Air Cargo ...... 8 For a free subscription or manager for Europe, Swiss WorldCargo...... CV3 information on advertising, the Middle East and Thai Cargo...... 9 visit www.aircargoworld.com Hatfield Africa. Hatfield World Air Cargo Event ...... 19

November 2006 AirCargoWorld 43 44BackAviationINT 10/20/06 12:34 PM Page 44

BACK Aviation Aircraft Report

he A320-200 has been a hugely successful narrowbody aircraft program for Airbus. Since its in- Tception in 1988, Airbus has de- livered more than 1,500 of the aircraft to the passenger marketplace to nearly 140 operators worldwide. With the A320 as its workhorse, Airbus has become the market leader in terms of annual narrowbody de- liveries. With more than 1,300 firm orders and options on the books, the A320 will remain a valuable passenger aircraft for the foreseeable future. Although the popularity of the A320 as a passenger aircraft is undeniable, the po- tential of the A320 as a freighter aircraft remains unclear. Certainly there is a market requirement for incremental mains strong, values and lease rates may remain unattrac- small regional freighter aircraft over the next 10 years as re- tive for freighter investment into the foreseeable future. gional air freight volume grows and an aging small regional And although Airbus has publicly stated their intention to freighter fleet, namely the DC-9, requires a near-term fleet aggressively develop an A330-200 freighter, they have not renewal. The A320 has undeniable operating characteristics publicly committed to similar plans for the A320. Given favorable for the freighter market, but several factors may the demand strength of the passenger A320-200 and the impede the development of its all-cargo potential. plethora of other programs under development at Airbus, First, the strength of demand for the passenger version including the recently delayed A380, a re-designed has kept lease rates and aircraft residual values at levels A350XWB, and the A330-200, it is reasonable to project unattractive for freighter conversion investment. For the that Airbus may not consider an A320 freighter variant A320-200 to be an attractive freighter conversion invest- until the 2010-2012 time frame. ment, aircraft values would need to be in the $10 million Lastly, Boeing will have a substantial first-mover advan- to $11 million range. Currently, the oldest aircraft are tage in this market. With conversion specialists offering only beginning to reach this value range. 737-300, 737-400, and 757-200 freighter products, con- However, the strength of the passenger aircraft market verted Boeing freighters will undoubtedly find the early has kept the lease rates high even for these older aircraft. success over the next five to eight years in the small re- Given that forecast demand for passenger capacity re- gional freighter market. ■

Passenger Values

$50.00 $45.00 $40.00 1996 2006 $35.00 1988 $30.00 $25.00 $20.00 $15.00

Current Book Values Book Current $10.00 $5.00 $0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: BACK Aviation Solutions

44 AirCargoWorld November 2006 44BackAviationINT 10/20/06 12:35 PM Page 45

A320-200

Fleet by Aircraft Status Average Direct Operating Costs Active Fleet by (Active / On order) Q1 2005 World Region

All Other 9% Depreciation/ Crew Cost Capital 17% Central America Europe Leases 4% 33% 9% South America Active On Order 53% 4% 32% Engine Fuel Cost Maintenance 60% Middle East Expense 6% U.S.A 7% Far East 23% On Aircraft Maintenance 21% Option Expense 15% 10%

OPERATOR EQUIPMENT TYPE ACTIVE IN SERVICE United Airlines Passenger 97 JetBlue Passenger 94 Northwest Airlines Passenger 73 Passenger 62 Air France Passenger 55 America West Passenger 55 Passenger 54 Indian Airlines Passenger 48 Air Canada Passenger 46 TAM Linhas Aereas Passenger 44 China Southern Passenger 43 Lufthansa Passenger 36 All Nippon Airways Passenger 28 Mexicana Passenger 28 Airways Passenger 23 Passenger 22 British Airways Passenger 22 TACA Passenger 20 US Airways Passenger 20 Passenger 16 TAP Air Portugal Passenger 15 Air Deccan Passenger 14 Berlin Passenger 14 Swiss International Airlines Passenger 14 Turk Hava Yollari Passenger 14 Airlines Passenger 14 Airlines Passenger 13 Egypt Air Passenger 12 Passenger 12 Freedom Air Passenger 12

November 2006 AirCargoWorld 45 46BottomLineINT 10/20/06 12:35 PM Page 46

AirCargo theBottom Line

Semi Months Worldwide monthly year-over-year change in sales of semiconductors and month- to-month change since 2005. 20%

15%

10% Y-O-Y

5% M-O-M 0%

–5% 1/05 2/05 3/05 4/05 5/05 6/05 7/05 8/05 9/05 10/05 11/05 12/05 1/06 2/06 3/06 4/06 5/06 6/06 7/06 8/06 Source: Semiconductor Industry Association

Carrying Europe Monthly year-over-year percent change in European airlines’ overall freight traffic and Asia-Pacific freight traffic. 12% 10% Overall 8% Asia-Pacific 6% 4% 2% 0% –2% 7/05 8/05 9/05 10/05 11/05 12/05 1/06 2/06 3/06 4/06 5/06 6/06 7/06 8/06 Source: Association of European Airlines

Carrying Asia Monthly year-over-year percent change in capacity, in available tonne kilometers, and traffic, in freight tonne kilometers, of Asia-Pacific airlines. 12%

10% Capacity 8% Traffic 6% 4% 2% 0% –2% –4% –6% 1/05 2 /05 3/05 4/05 5/05 6/05 7/05 8/05 9/05 10/05 11/05 12/05 1/06 2/06 3/06 4/06 5/06 6/06 7/06 8/06 Source: Association of Asia Pacific Airlines

46 AirCargoWorld November 2006 46BottomLineINT 10/20/06 12:36 PM Page 47

Top Airports Apple Slice The world’s top 25 cargo airports, first Monthly year-over-year percent change half of 2006. in freight traffic at New York Kennedy World International Airport. Rank Airport Tonnes % Change 0% 1 Memphis (MEM) 1,791,372 2.2 2 Hong Kong (HK`G) 1,699,913 6.7 –2% 3 Anchorage (ANC)* 1,287,060 0.9 4 Seoul Incheon (ICN) 1,108,225 6.0 –4% 5 Tokyo Narita (NRT) 1,103,902 0.5 –6% 6 Frankfurt (FRA) 1,028,088 10.0

7 Shanghai Pudong (PVG) 971,377 14.4 –8% 8 Singapore (SIN) 940,308 6.9 9 Louisville (SDF) 931,977 9.8 –10% 5/05 6/05 7/05 8/05 9/05 10/0511/0512/05 1/06 2/06 3/06 4/06 5/06 6/06 7/06 10 Los Angeles (LAX) 927,134 –1.1 Source: Port Authority of New York & New Jersey 11 Miami (MIA) 901,307 1.0 12 (TPE) 824,802 0.8 World Traffic 13 Chicago O’Hare (ORD) 824,229 7.3 Percent change in international freight 14 New York Kennedy (JFK) 805,682 –2.1 traffic, first eight months of 2006. 15 Amsterdam (AMS) 758,400 4.7 20% 16 Paris De Gaulle (CDG) 740,270 4.9 17 Dubai (DXB) 712,076 15.6 15% Capacity 18 London Heathrow (LHR) 669,666 –1.1 Traffic 19 Bangkok (BKK) 594,488 8.8 20 Indianapolis (IND) 516,373 5.1 10% 21 Newark (EWR) 478,202 1.6 22 Beijing (PEK) 429,233 19.5 5% 23 (KIX) 404,266 –0.7

24 Guangzho (CAN) 391,412 12.9 0% Middle Africa North Asia Latin Europe Worldwide 25 Tokyo Haneda (HND) 375,418 3.7 East America Pacific America

Source: Airports Council International Source: IATA

Pump Price Jet fuel prices at major points in North America, Europe and Asia. (in $US per gallon) $2.4

$2.2

$2.0

New York Rotterdam $1.8 Singapore

$1.6 1/06 2/06 3/06 4/06 5/06 6/06 7/06 8/06 9/1 9/8 9/15 9/22 Source: U.S. Energy Information Administration

November 2006 AirCargoWorld 47 48EventsINT 10/20/06 12:36 PM Page 48

Events

Nov. 11-14 tion at the Omni Shoreham, looking together the private express and at the strategies and technologies of postal world, with support from DHL, Ft. Lauderdale, Fla.: airline security. For information, call Aramex and Emirates Post. For infor- Transcomp/Intermodal Expo, at (865) 970-0515 or visit: www.sskies. mation, call +44 870 950 7900 or e- the Convention Center, the annual org/symposium.htm. mail: [email protected]. meetings of the National Industrial Transportation League, Transporta- Dec. 4-5 March 4-8 tion Intermediaries Association and the Intermodal Association of North New York: Aircraft Finance Mexico City: IATA World Car- America. For information, call (703) Conference, at the Marriott Finan- go Symposium, combining a series 524-5011 or visit: www.freightexpo.net. cial Center, the 29th edition of the of events including IATA’s Cargo annual event takes a fleet look air air- Summit and looking at issues such as Nov. 16-18 plane values, operating costs and fi- dangerous goods, technology, mail nancing options. For information, management and others. For infor- Mumbai, India: Air Cargo In- call (212) 661-3500 or visit: www. mation, call (514) 874-0202 or visit: dia 2006, at the World Trade Center, iirusa.com/aircraftfinance. www.iata.org/events. organized by the STAT Trade Times. For information, call +91 22 2757 0550 Dec. 4-5 March 11-13 or visit: www.stattimes.com/ACI2006. Rio de Janeiro, Brazil: World Phoenix: Air Cargo 2007, at the Nov. 27-28 Mail and Express Americas, the Sheraton Wild Horse Pass, the three- Americas edition of the Triangle sided annual meeting of the Airfor- San Francisco: Supply Chain Management event looks at where warders Association, the Air & Expe- Directions Summit, at the San private parcel delivery meets the dited Motor Carriers and the Express Francisco Bay Hotel, the eye for trans- postal world. For information, call Delivery & Logistics Association. For port event takes place with the High +44 870 950 7900 or e-mail: information, call (703) 361-5238 or Tech & Electronics Supply Chain [email protected]. visit: www.aircargoconference.com Summit and promises case studies from Dell, Nokia, Nike Fujitsu and Dec. 5-6 April 29 – May 1 others on how they get goods mov- ing. For information, call +44 207 375 New Delhi: Cargo in Emerging San Diego: CNS Partnership 7576 or visit: www.eyefortransport.com. Markets, at the Taj Mahal Hotel, an Conference 2007, at the Rancho IATA event looking at business plan- Bernardo Inn, the largest gathering of Nov. 27-30 ning, regulatory issues and market the international side of North Amer- opportunities in India. For informa- ica’s air cargo industry meets under Washington: Defense Logis- tion, call (514) 874-0202 or visit: new leadership at Cargo Network Ser- tics 2006, at the JW Marriott, cross- www.iata.org/events. vices. For information, call (516) 747 ing modes and services for the U.S. 3312 or visit: www.cnsc.net. military. For information, call (888) 482-6012 or visit: www.defenselog.com. 2007 May 14-17 Feb. 27-28 Nov. 27-30 Scottsdale, Ariz.: Regional Air Dubai: World Mail and Ex- Cargo Carrier Association Washington: International press, the global conference brings Spring Conference, at the Double- Aviation Technology Sympo- tree Paradise Resort, looking at the sium, organized by the National For more events, visit: business that props up feeders. For Safe Skies Alliance with the U.S. www.aircargoworld. information, call (508) 747-1430 or Transportation Security Administra- com/dept/events.htm visit: www.raccaonline.org. ■

48 AirCargoWorld November 2006 Project1 10/10/06 12:02 PM Page 1

swissworldcargo.com

We care for your cargo. For every consignment, we have a commitment: special care. Due to our know-how and highly skilled staff we guarantee that your cargo will arrive safe and sound. And, of course, exactly on time – at more than 150 destinations in over 80 countries. Project1 10/10/06 11:54 AM Page 1

ALITALIA WITH A NEW DEDICATED FLEET AND 30 WEEKLY DIRECT FLIGHTS TO CHINA, CARGO. INDIA, NORTH AMERICA AND AFRICA WE TAKE CARE OF YOUR AIR SHIPMENTS: THE WORLD THEY WILL ARRIVE AT DESTINATION MOVES FASTER AND MORE EFFICIENTLY. WITH US. LET YOUR CARGO MOVE WITH US.

OUR NEW SCHEDULE OF DIRECT FLIGHTS WILL IMPROVE THE TIMING OF YOUR AIR SHIPMENTS.

FOR FURTHER INFORMATION: LOCAL CUSTOMER SERVICE, WWW.ALITALIACARGO.COM