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QUALITY AND BEST PRACTICE IN AIR LOGISTICS OPERATIONS

Pharma & BioSciences Forwarding interview: Conference report C.H. Robinson Aligning expectations Stability in a volatile of shippers and air cargo environment

Paperless progress North America takes e-AWB lead

TOP CARGO AIRPORTS REPORT Rankings and performance in 2014 and 2015

Air Cargo Handling Conference report Heathrow 2.0 Setting clear objectives for the sector Top UK airport gets serious about cargo

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Pharma & BioSciences Forwarding interview: Conference report C.H. Robinson Aligning expectations Stability in a volatile PARVEEN RAJA of shippers and air cargo environment Paperless progress North America takes e-AWB lead Setting clear Publisher [email protected] TOP CARGO AIRPORTS REPORT Rankings and performance in 2014 and 2015

Air Cargo Handling Conference report Heathrow 2.0 Setting clear objectives for the sector Top UK airport gets serious about cargo :,17(5WWW.CAASINT.COM objectives MARTIN KINGWELL International Sales Director his issue of CAAS includes two conference reports, each pointing [email protected] towards a future air cargo handling sector characterised by greater professionalism and standardisation. In the report on NOVA ABBOTT T the Cool Chain Association (CCA)’s Pharma & BioSciences Sales Manager – Asia Conference, participants highlight the value of IATA’s CEIV [email protected] 3KDUPDFHUWLÀFDWLRQSURJUDPPHZKLFKLVEHLQJDGRSWHGE\PRUHDQGPRUH companies within the air logistics chain. This is a great credit to the sector and BHAVI ATUL WKRVHWKDWKDYHKHOSHGGHYHORSWKHFHUWLÀFDWLRQLQFOXGLQJRIFRXUVH,$7$ Conference Coordinator but also pioneers such as Brussels Airport and its cargo community. [email protected] And the CCA itself deserves credit, having highlighted the need EDITOR’S NOTE on various occasions, and most notably to IATA during the CCA’s SHOBHANA PATEL ‘Pharmaceuticals in the Cool Chain’ conference in 2013 and the Head of Finance associated Air Cargo Handling Conference. This demonstrates the ﬁ [email protected] potential of these kinds of events and also of collaborative and persistent attempts to move the air cargo handling sector forwards. SHELDON PINK Creative Director That has always been one of the main aims of the annual Air Cargo [email protected] Handling Conference, and this year’s event in Bangkok attempted to establish clear milestones for taking various initiatives forward this year, CHARLOTTE WILLIS principally via COAG. While some may be frustrated with the rate of Circulation progress, the incorporation of COAG (to be renamed the ‘IATA Cargo [email protected] Handling Council’ or ICHC) within IATA’s Cargo Services Conference (CSC) aims to increase the speed in which standards and industry positions are SOHAIL AHMAD developed, endorsed, and implemented. The air cargo handling sector Online News should encourage and wherever possible support the work of COAG/ICHC, [email protected] whose progress will be examined again at next year’s ACH Conference. Progress with e-Freight has continued, and while e-AWB penetration is not expected to reach IATA’s global target of 45% on available lanes by Address changes and subscription the end of the year, it may get close to 40%, thanks in part to a push this orders to: [email protected] ISSN 2054-8958 year in markets such as the US (see North America Report, pages 4-10). And Cargo 2000 – also being lined up for a new name – has also EDITORIAL CONTRIBUTORS continued its slow evolution towards increasing relevance. It claims Harley Khan, John McCurry roughly half of the world’s air cargo volume is now managed, measured and controlled through Cargo 2000 processes and systems. But its work is still not universally known throughout the freight world, as highlighted PUBLISHED QUARTERLY BY in the interview (pages 44-48) with US forwarder C.H. Robinson’s head of EVA International Media Ltd global forwarding, Mike Short. Boswell Cottage, 19 South End And yet the importance of process and performance measurement Croydon, London, CR0 1BE, UK among freight forwarders continues to grow, as does the ability of Tel: + 44 (0) 20 8253 4000 a forwarding company’s IT systems to manage and integrate this Fax: + 44 (0)20 8603 7369 information and automate functions, where possible. Website: www.evaint.com Logistics investment analyst Stifel recently highlighted a uniform global PRINTED BY IT platform as the key biggest single differentiator between the ‘haves’ Headley Brothers and the ‘have nots’ among the global freight forwarding companies The Invicta Press, Lower Queens Road WKDW LW DQDO\VHV LQ WHUPV RI WKHLU SURÀWDELOLW\ DQG KHQFH SURVSHFWV IRU Ashford, Kent, TN24 8HH, UK investment purposes – yet another factor adding to the apparently inexorable pressure towards digitalisation. DISTRIBUTED BY Ultimately, pressure from forwarders and their customers Asendia will continue to drive this desire for data along the whole air logistics chain. And perhaps some of the visibility elements

EVA INTERNATIONAL MEDIA LTD of initiatives such as CEIV Pharma can be repurposed to PUBLISHERS & EVENTS SPECIALISTS KHOSIXOÀOOWKHVHQHHGVQ

:LQWHU CARGO AIRPORTS AIRLINE SERVICES 1 4

4 NORTH AMERICA REPORT: Paperless progress

The US now leads the world in terms of e-AWB volumes, while the region’s carriers and cargo handlers in placing greater emphasis on customer relations, writes John McCurry

10 COOL-CHAIN REPORT: CCA Pharma & BioSciences Conference

Healthcare shippers and logistics providers are making progress in aligning their expectations and priorities

16 AIRPORT FOCUS: Heathrow

Alongside a £180m plan to improve throughput times, processes, and facilities, cargo manager Nick Platts has a mandate to lead the airport’s cargo community

24 AIRPORT ANALYSIS: Top cargo airports report

Rankings and performance in 2014 and 2015, in partnership with ACI

36 CONFERENCE REPORT: Air Cargo Handling 2015

Speakers and facilitators discuss and set some clear objectives for the sector, as COAG’s role within IATA becomes formalised

44 FORWARDING INTERVIEW: C.H. Robinson

In a volatile and consolidating logistics landscape, the US ﬁ rm is expanding vertically as well as geographically, says global forwarding president Mike Short

2 CARGO AIRPORTS AIRLINE SERVICES :LQWHU SWISSPORT CARGO PORTAL YOUR PRECIOUS GOODS IN SAFE HANDS

For more information: contact your local Swissport Cargo sales team or go to the App Store. NORTH AMERICA REGIONAL REPORT: REGIONAL REPORT:

Carriers and cargo s the air cargo sector con- improvements worldwide. The whole team is fo- WLQXHV WR QDYLJDWH D GLIÀFXOW cused around one goal: quality, quality, quality.” handlers in North business landscape, carriers And American Airlines Cargo, coming out America are placing A and cargo handlers in North of the integration process with US Airways, is $PHULFD KDYH PDGH VLJQLÀ focusing on partnerships and cultivating cus- greater emphasis on cant progress with e-Freight – with the US now tomer loyalty, as well as seeking to make busi- the world leader in terms of e-AWBs by volume ness easy to do through all of its “engagement customer relations and – and have also been placing greater emphasis points”, says David Vance, cargo vice president. paperless processes in on customer relations. Carriers say the indus- “A customer experience team was established try has learned it must listen to its customers’ during integration, as well, to focus on improv- ZKDWUHPDLQVDGLIÀFXOW needs and ensure they are being met, and so ing the experience for every functional group companies are developing new ways to deliver in cargo working or speaking with customers. business environment, on promises. They’ll continuing to deliver improvements in writes John McCurry Jan Krems, president of United Cargo, says our service performance by adding a focus his team is focused on measureable improve- on being more consistent in policies and pro- ments in key metrics that impact customer sat- cedures across the system and continuously isfaction, including keeping the commitments looking for ways to better our operation.” PDGHWRWKHFXVWRPHUWRÁ\WKHLUVKLSPHQWVDV Across the border, Air Canada has also been planned – and have them available at destina- ramping up its customer service programme. tion on time and as promised. Lise-Marie Turpin, the airline’s cargo vice presi- “We’re very pleased in the improvements dent for the past seven years, says the carrier we’ve made in our worldwide quality and ef- is focusing on examining processes from a cus- ÀFLHQF\ ZKLFK DUH EDFNHG XS E\ RXU LQWHUQDO tomer’s point of view and trying to understand measurements, IATA’s Cargo 2000 (C2K) sta- what the “pain points” have been. tistics, and other industry data – and, most “We are seeing some results from listening importantly, feedback from our customers,” to a snapshot of what the customers were Krems says. “United Cargo is making use of telling us a year ago,” Turpin says. “We are new technology to measure our operations in now conducting those same visits and we Turpin: Examining ‘pain points’ for customers more ways, and we’re using the knowledge have made inroads and provided customers and insight we gain from this data to generate with better service. I am quite happy with that

4 CARGO AIRPORTS AIRLINE SERVICES :LQWHU REGIONAL REPORT: NORTH AMERICA

approach. The methodology is moving forward electronic information to determine the hiccup the US was slow to get started with e-Freight and we have a better understanding of what points and reducing data errors,” says Mike and last year trailed the global average for the customer is looking for.” White, director of cargo facilitation and stand- e-AWB penetration by several percentage Meanwhile, Jason Berry, cargo managing ards for IATA’s US organization, Cargo Network points with a penetration rate of around director for Alaska Airlines, says the carrier is Services (CNS). “We should see improved pro- 20%, it has made strong progress this year. actively exploring the modernization of its on- cesses still as we move to full electronic, and Indeed, in the 12 months, to September line booking tool and already offers automated data can be better utilized to scrutinize where 2015, average US e-AWB penetration rates shipment status update messages via email or areas of improvement can be made.” more than doubled from 16% to Septem- text. “Keeping our customers informed of the ber 2014 to 33.9% in September 2015, status of their goods as they move through our US tops e-AWB countries almost catching up with the global average expanding network is a critical part of the ser- While the global air freight sector won’t of 34.2%. And in terms of global rankings vice we provide,” Berry says. reach IATA’s goal of 45% adoption of elec- by e-AWB volume, the US this year overtook But better service can also come from an tronic airway bills (e-AWB) by year’s end, pro- Hong Kong as the number one e-AWB coun- improved offering in the air. “Earlier this year we gress has been steady, albeit slow. Although try of origin. announced our commitment to convert three of our 737-700 passenger jets into freighters,” says Berry. “These aircraft will replace “United Cargo RXUH[LVWLQJÁHHWRIÀYHFRPELVDQG is making use of one dedicated freighter. The combi aircraft new technology have been a workhorse for us in the state of Alaska and have served a great purpose for our to measure our passengers and cargo customers. Moving to a operations in IXOO\GHGLFDWHGÁHHWRIIUHLJKWHUVZLOODOORZXVWR maximize our capacity, offering schedules that more ways” best suit the needs of those in our communi- ties that rely on air cargo.” Jan Krems &DUJR RIÀFLDOV DW ,$7$ EHOLHYH TXDOLW\ LV EH ing improved, crediting the incremental move to electronic gathering of data. “Much of this LV GULYHQ E\ GHÀQLQJ SURFHVVHV DQG XVLQJ

:LQWHU CARGO AIRPORTS AIRLINE SERVICES REGIONAL REPORT: NORTH AMERICA

White notes that North America as a whole to a paperless operation,” Vance says. “With- has recorded consistent growth in 2015 with out our partners, the supply chain doesn’t run the US, Canada and Mexico [which IATA typi- SURSHUO\DQGDOLJQLQJRXUJRDOVLVWKHÀUVWVWHS cally groups in Latin America/Caribbean] show- needed to modernize and maximize the quality LQJVLJQLÀFDQWSURJUHVV)RUH[DPSOHKHVD\VLQ DQGHIÀFLHQF\RIRXUSURGXFWVDQGVHUYLFHV:H September 2015 one out of three shipments in support the single process that allows forward- and out of the US were e-AWB. ers to send all shipments through a location via Canada, which ranks 15th globally in terms e-AWB and are developing internal technology of e-AWB volumes, saw these rise by around that will help us better support e-AWB and this 56% in the 12 months to September 2015, centralized process.” while Mexico (32nd worldwide) saw its e-AWB Turpin reports that Air Canada is making volumes rise by 63% over that period. steady progress with e-AWB, reaching a 38% “We are seeing more carriers with serious Berry: Shipment status rate at the end of October. “We are shy of the information is critical roll-out plans that are working with their opera- 45% goal, as is the industry in general,” she tions and ground handling partners to simplify- says. “The industry realizes this is a complex ing the process for forwarders,” White says. “IT in September. It is also the only US carrier issue and we are taking the steps we need companies have also developed solutions for among the global top 10 airlines in terms to, such as introducing a new booking tool on their customers that allow the airlines and for- of e-AWB volumes, coming in at number 10. our web site. warders to become more electronically capa- American Airlines’ Vance says the carrier “We’ve tried to make it as easy as we can for ble. Other factors affecting the ongoing rollout set modest e-AWB goals in 2014 as the inte- our customers,” she adds. “When we look at in the region has been the US government’s gration with US Airways unfolded. American the total volume of shipments that we handle move to fully electronic import and export in the is now pushing ahead with full force. It now worldwide, we offer e-AWB for about 70% of the next few years under the Automated Commer- has 60 stations open to e-AWB, including volume we carry. It’s taken a lot of work to get cial Environment system (ACE). This is a natural the vast majority of stations that have inter- up that number.” ÀWIRUH)UHLJKWµ national service. American’s adoption rate $W OHDVW RQH PDMRU DLUOLQH LV FRQÀGHQW RI IATA notes that the ‘Big 3’ US carriers - Delta, reached 24.6% in September and has a goal achieving the 45% mark by 31 December. American and United - have taken the lead of 30% by the end of the year. United stood at 36% at the end of October and by aggressively adopting e-AWB at their main “As the industry initiative continues to gain Krems says the carrier fully expects to meet or gateways. Other airlines making good strides momentum, we’ve really been working to sup- exceed 45% by the end of the year. DUH$LU&DQDGD&DWKD\3DFLÀF,QWHUQDWLRQDO$LU port our shippers and forwarders on the path lines Group and LAN Cargo. And some leading Single Process airports in terms of e-AWB penetration include “United Cargo is a strong supporter of IATA’s Dallas-Fort Worth, Miami, Atlanta, Los Angeles, plan to establish the e-AWB as a necessary San Francisco, New York JFK, Montreal, Toron- precursor to achieving complete e-freight,” to and Vancouver. Krems says. “We are participating with 16 US-headquartered freight forwarding and ex- other IATA member airlines in an initiative press companies have also contributed to the to establish the e-AWB Single Process as improvement in e-AWB update this year, with the preferred means of shipping cargo to Expeditors, UPS and FedEx all among the top all destinations from the largest-volume 10 global freight forwarders by e-AWB volume. European airports. This project reduces the barriers to e-AWB adoption by providing Delta pulls ahead a process that meets the needs of forward- Delta leads the pack in terms of US carriers Vance: We support the ‘single process’ ers and carriers, as well as customs and with an e-AWB penetration rate of 61.5% VHFXULW\RIÀFLDOVLQHDFKORFDWLRQµ

Investment in improving facilities includes AA Cargo’s cold chain facility in Philadelphia

6 CARGO AIRPORTS AIRLINE SERVICES :LQWHU SM ©2015 United Airlines, Inc. All rights reserved. climate climate control Dedicated experts trained to monitor your temperature-sensitive products. friendly unitedcargo.com REGIONAL REPORT: NORTH AMERICA

Alaska Airlines is not currently participat- Academy, an online Learning Management ing in IATA’s e-AWB initiative, but plans to System developed for CAS by the global con- do so, Berry says. “Although Alaska is not sulting and training company 21CC Education yet on board with the global initiative, we LLC. Jetha says that resulted in a robust and have been operating as a paperless car- multilingual training and development tool rier for many years. Our customers do not for employees, in which paper-based presen- QHHGWRWHQGHUDSDSHU$LU:D\ELOOWRÁ\RQ tations and manuals have been replaced by Alaska and we do not send any hard cop- new e-learning tools. ies to our down-line stations. Our paperless “Our in-house trainers now use the Learning environment works very well internally; we Academy to set up, manage and deliver train- are eager to begin working with forwarders ing schedules for employees across a range of and other customers capable of transmit- subjects such as palletization, ramp handling, Jetha: Some companies have ting all of their data to us electronically.” been reluctant to invest in training export processes, TSA Awareness, and health and developing people and safety,” Jetha says. Improving facilities CAS also uses what it calls its ‘HEART’ app, But quality performance also means invest- development of our people and encourage which gives every employee a fast and easy ing in infrastructure on the ground, and them to stay and further their careers with way to communicate with the business, such Vance says American has put a lot of invest- the company,” Jetha says. “Staff retention in DVVKDULQJWKHLULGHDVIRURSHUDWLRQDOHIÀFLHQ ment into improving facilities. This includes the cargo handling industry is an issue. Some cies or reporting anything unsafe or suspicious. its cold chain facility in Philadelphia. “We’ve companies have perhaps been reluctant to New technology to improve the quality of also expanded our footprint in key locations, invest in training and developing people be- cargo operations is also used. This includes invested in improvements to some of our cause they believed staff would move on too ePic, which is a cargo management system hub buildings, and are now taking delivery soon, but we wanted to change that way of that automates a lot of the processes that were of a long list of new, optimally reliable equip- thinking and give our staff the reasons they once manual and time-consuming. Flight data, ment, trucks and tractors,” Vance says. needed to stay with us, because a stable tracking, payment, discrepancies and more are ´$QGDWVRPHRIRXUKLJKHVWWUDIÀFVWDWLRQV workforce in which people know their jobs is available online to everyone in the cargo han- ZH·YHSURYLGHGVWDIÀQJDGGLWLRQVFDUJRZDUH so important to quality of service.” dling chain and each stage of the cargo ‘lifecy- KRXVHHQKDQFHPHQWVIRUHIÀFLHQF\SXUSRVHV The company created the CAS Learning cle’ is managed through a proprietary system and increased the frequency of performance that consists of three key elements. reviews. These measures are all to ensure The ePic Messaging Engine transmits in- MEASURING PROGRESS consistent operational success and change FRPLQJDLUOLQHÁLJKWGDWDYLD,$7$PHVVDJLQJWR for the better.” IATA revamped its Cargo 2000 (C2K) air the ePic Customer Service Portal and the ePic freight quality initiative during 2015, cul- minating with the appointment of Ariaen Mobile Warehouse Management System. The Handling training Zimmerman as executive director in Sep- Customer Service Portal enables forwarders tember. He reports that C2K held one of Third-party cargo handlers are also focusing its busiest Technical Workgroup meetings and brokers to manage, track and reconcile on quality improvement. Consolidated Avia- ever this fall, with more than 60 repre- their shipments online and saves them having sentatives of forwarders, airlines, ground tion Services (CAS), the largest independent handlers and IT providers talking about to make countless phone calls - wasting time cargo handler in North America, says train- ways to improve C2K’s impact on the that they can instead spend more productively industry. Zimmerman notes that while C2K ing is an important aspect of this, which is a is a unique platform and has achieved on other areas of the business. challenge in a sector with a notoriously high much, there is still work to be done. CAS is now taking this a step further with “Although roughly half of the world’s staff turnover rate. Ray Jetha, senior vice air cargo volume is now managed, the launch this fall of ePic Easy Export, its new president of sales, says CAS recognized that measured and controlled through Cargo web-based e-AWB tool. For the 3,000 freight 2000 processes and systems, we are the conventional industry approach to train- working on the next steps,” Zimmerman forwarders using CAS’ current ePic Online Cus- ing was not sustainable in today’s aviation says. “We aim to be more scalable in tomer Service Portal, ePic Easy Export will de- our processes, so we can better serve environment, particularly for a workforce of smaller market parties and stations. The liver the long-awaited community tool compa- some 4,000 people. airport-to-airport process has come from nies need to make an easy transition to e-AWB development into a mature process “So we invested in a professional learning and we are working on getting to the and eliminate the heavy dependency on paper system to create a much more dynamic and VDPHOHYHOZLWKWKHVSHFLÀFDWLRQVDQG documentation for the exchange of informa- processes for door-to-door, in parallel effective learning environment and that is with the implementation of the Cargo tion, Jetha says. Currently, each international designed to not only maintain the quality of 2000 methodology on a piece level airfreight shipment can require more than 30 rather than a shipment level.” service for customers but to also support the different paper documents. QQQ

8 CARGO AIRPORTS AIRLINE SERVICES :LQWHU DEPARTS GATE 10:22 AM

With you all the way.

When you ship with us, we consider you our partner. Because, like you, an entrepreneurial spirit of change and growth guides everything we do. We’re in this together, and with our larger, expanding network, we’ll have even more opportunities in the future to give you the same exceptional service you’ve come to expect. That’s a great partnership.

American Airlines Cargo and the Flight Symbol logo are marks of American Airlines, Inc. ©2015 American Airlines, Inc. All rights reserved. Find a solution that works for you at aacargo.com COOL CHAIN: COOL CHAIN: CONFERENCE REPORT CONFERENCE REPORT CCA Pharma & BioSciences Conference review Healthcare shippers KH ORJLVWLFV FKDLQ LV RQO\ DV RU FHUWLÀFDWLRQV OLNH ,$7$·V &(,9 3KDUPD DUH VWURQJDVLWVZHDNHVWOLQNDQG GHGLFDWHG WR HQVXULQJ SDWLHQW VDIHW\ DQG SUH- and logistics providers WKLVVWDQGVHVSHFLDOO\WUXHIRU YHQWLQJ PRQH\ EHLQJ ZDVWHG ,$7$ YDOXHG WKH often have different T WHPSHUDWXUHFRQWUROOHG VHU- JOREDOSKDUPDFHXWLFDOORJLVWLFVPDUNHWDW YLFHV ,UUHVSRQVLEOH KDQGOLQJ ELOOLRQLQ expectations and FDQHDVLO\GHVWUR\DVKLSPHQWRIWUHPHQGRXV $QG WKHVH ZHUH DPRQJ WKH NH\ WRSLFV GLV- YDOXH DQG SKDUPDFHXWLFDO FRPSDQLHV GH- FXVVHG DW WKH &RRO &KDLQ $VVRFLDWLRQ·V WKLUG priorities, while those SHQGRQDÁDZOHVVVHUYLFHZKHQLWFRPHVWR &&$ 3KDUPD %LR6FLHQFHV &RQIHUHQFH LQ within the logistics VHQVLWLYHJRRGV %DVHOLQHDUO\2FWREHUZKHUHDQXPEHURILP- 7KH &RRO &KDLQ $VVRFLDWLRQ &&$ KDV IRU SOHPHQWDWLRQVZHUHSUHVHQWHGKLJKOLJKWLQJWKH chain also sometimes PDQ\\HDUVEHHQKLJKOLJKWLQJWKHVHLVVXHVDQG EHQHÀWV DQG FKDOOHQJHV RI &(,9 FHUWLÀFDWLRQ speak different ZRUNLQJRQEHVWSUDFWLFHLQLWLDWLYHVDPRQJLWV DQGPDNLQJFRPSDULVRQVZLWK*'3 PHPEHUVDQGWKHZLGHUFRROORJLVWLFVVHFWRU &&$ VHFUHWDU\ JHQHUDO (GZLQ .DOLVFKQLJ ‘languages’. But )RUVRPHWLPHWKH&&$KDVDOVREHHQSXVK- &(2 RI ;WUHPH 7HFKQRORJLHV KLJKOLJKWHG WKDW LQJIRUVWDQGDUGLVDWLRQLQWKHSKDUPDFHXWLFDO SKDUPD FRPSDQLHV OLNH HYHU\ LQGXVWU\ DUH these are aligning, DLUFDUJRVXSSO\FKDLQLQFOXGLQJKLJKOLJKWLQJ EUDFLQJ WKHPVHOYHV IRU PDMRU FKDQJHV DQG delegates hear WKH QHHG WR ,$7$ DW WKH &&$·V ¶3KDUPDFHXWL- ZKLOH WKH RSSRUWXQLWLHV DQG FKDOOHQJHV DUH FDOV LQ WKH &RRO &KDLQ· FRQIHUHQFH LQ PDVVLYH WKHVH FKDQJHV ZLOO LPSDFW ORJLVWLFV ,QGHHGDWWKDWFRQIHUHQFHLQ/LVERQ6HEDV- SURYLGHUV DV ZHOO +HDOWKFDUH LV HYROYLQJ SD- WLDDQ6FKROWHDV&KDLUPDQRIWKH&&$DVNHG WLHQWV DUH EHWWHU LQIRUPHG DQG KHQFH PRUH 'HV9HUWDQQHVRI,$7$SHUVRQDOO\DQGSXEOLFO\ GHPDQGLQJZKLOHPDQ\GLIIHUHQWQDWLRQDOUXOHV WROHDGDQGVHWVXFKDVWDQGDUGDQG0DUFHO DQG UHJXODWLRQV DUH LQWHUYHQLQJ LQ KRZ WUHDW- )XMLNH IURP IRUZDUGHU .XHKQH 1DJHO DOVR PHQWVKRXOGEHSURYLGHG FKDOOHQJHG,$7$WRWDNHDFWLRQ$QGVRWKH&&$ ZDUPO\ ZHOFRPHG ,$7$·V GHFLVLRQ WR GHYHORS 3KDUPDVXUYH\ÀQGLQJV WKH &HQWUH RI ([FHOOHQFH IRU ,QGHSHQGHQW 7KHÀUVWSUHVHQWDWLRQGUHZXSRQWKHÀQGLQJV 9DOLGDWRUVIRU3KDUPDFHXWLFDO+DQGOLQJ &(,9 RI WKH ODWHVW ¶3KDUPD 0DQDJHPHQW 5DGDU· 3KDUPD FHUWLÀFDWLRQ SURJUDPPH ZKLFK LW VXUYH\ E\ &DPHORW 0DQDJHPHQW &RQVXOW- ODXQFKHGLQ-DQXDU\ DQWV D FRQVXOWLQJ ÀUP VSHFLDOLVLQJ LQ WKH 5HJXODWLRQVOLNHWKH(8·V*RRG'LVWULEXWLRQ SKDUPDFHXWLFDO PDUNHW 7KH VXUYH\ LQGL- 3UDFWLFH *'3 XSJUDGHGLQ6HSWHPEHU FDWHGWKDW7HPSHUDWXUH&RQWURO7UDFHDELOLW\

10 CARGO AIRPORTS AIRLINE SERVICES :LQWHU COOL CHAIN: CONFERENCE REPORT

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eathrow Airport’s attitude Plans to become 100% ‘e-Freight ready’ to cargo has been a topic involve working with businesses, airlines, of much despair and IATA, HMRC and the Department for Trans- H derision over the last 20 port (DfT) to fully implement e-Freight, mak- years, but it seems that LQJ +HDWKURZ RQH RI WKH ÀUVWDLUSRUWV WR WKLQJVDUHQRZÀQDOO\UHDOO\FKDQJLQJIRUWKH become 100% digital. Other plans include better. building a specialist pharmaceutical stor- It may be no coincidence that the airport’s age area and a new secure truck parking sudden interest in developing a strategy and facility for over 100 vehicles.

$,53257)2&86+($7+52: investment plan for cargo comes at a time Platts has a reputation for getting things when it needs the business community to done and joined Heathrow Airport in Janu- OREE\RQLWVEHKDOIRYHUWKHSROLWLFDOO\GLIÀFXOW ary 2012 as head of ground handling, a role issue of a third runway at Europe’s busiest in- that also included cargo. That followed four ternational airport. and a half years as FedEx Express’s senior But Heathrow’s air cargo community has operations manager at Heathrow, when little interest in why the airport’s interest in he was also on the board of Courier Facili- cargo has come now, argues head of cargo ties Ltd, including latterly as non-executive Nick Platts, but is instead universally enthu- chairman, overseeing the operation of a siastic for its £180 million investment plan vendor-neutral bonded airport transit shed to “revolutionise” its cargo facilities and that facilitated the movement of express processes. courier shipments between courier com- “The companies here that I have been panies landside and commercial airlines talking to for the last three years, and prior to airside. He took on the role of Heathrow’s 1LFN3ODWWVKHDGRIFDUJR+HDWKURZ that when I was involved in the industry with head of cargo in May. one of integrators, are all supportive of what “I was progressing on cargo and it got to the The UK’s biggest we are trying to achieve,” he says. “They are point about two years ago where it started to glad that we have got a strategy and what gain momentum in the business,” he says. DLUSRUWLVÀQDOO\WDNLQJ that strategy includes; they like our ambition “In 2014 we started work on a cargo strategy. FDUJRVHULRXVO\ZLWK level, to be that leading airport in Europe for So we have been working on this for over 12 cargo. They want us to be that, and want months now. DORQJWHUPVWUDWHJ\ us to have quicker throughput times, and “Since May, we have accelerated work on streamline processes.” the programme. We again engaged with the D PXSJUDGH This new vision to overhaul the airport’s stakeholders. We had focus groups, inter- DQGDGHGLFDWHG cargo facilities was formulated after working views. I went out and met with businesses. closely with the airport’s cargo stakeholders, I also went and visited other airports. We FDUJRPDQDJHUZLWKD including freight forwarders, exporters, and concluded that at the end of September. PDQGDWHWROHDGFR airlines, via two consultations led by Platts. The I spent October going back to the industry blueprint includes proposals to develop better and saying ‘this is the strategy that we are RUGLQDWHDQGOREE\RQ infrastructure and smoother processes to re- looking to adopt – what do you think’?” He duce congestion and halve average processing says he got positive feedback from every- EHKDOIRIWKHDLUSRUW·V times from 8-9 hours to 4 hours. An air-to-air body that he spoke to. FDUJRFRPPXQLW\ WUDQVLWIDFLOLW\ORFDWHGRQWKHDLUÀHOGZRXOGDOVR “So, we have got this strategy; we have shorten connection times from a current aver- QRWKDGRQHWKDW,FDQÀQGLQRYHU\HDUV ZULWHVWill Waters age of more than 6 hours. Fundamentally, I’m on a mission here now

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to make Heathrow one of Europe’s leading we are in a regulated environment and our WDONLQJDERXW²,KDYHJRWÀYHWKLQJVWRGRWKLV cargo airports – so it is right for our air- VHWWOHPHQWZLWKWKH&$$LVHYHU\ÀYH\HDUV ‘Q6’ period – should be landed by 2017. lines, our businesses – and we will invest ZHKDYHJRWWRZRUNLQWKRVHÀYH\HDUF\FOHVµ “As we get into next year, I will also start writ- millions over the next 15 years in revolu- Starting the governance committee con- ing the business cases for the next regulated tionising cargo so that we do become that sultation and engagement on 16 November period, 2019 through to 2025 (‘H7’), and in leading airport.” should result in a decision by October next there we will be looking at the bigger-ticket $OOWKLVGHSHQGVRQÀUVWJHWWLQJFOHDUDQFH year to proceed and spend the money. “So, items, because I haven’t planned for these from the UK Civil Aviation Authority (CAA) to provided the business case stacks up and the things in this Q – the capital isn’t there – so we spend the money, which will only come if it is airlines support it, we will get the green light to will plan it for the next Q. And again, provided approved by the airport’s airlines. “Because go ahead next year, and all of the initiatives I’m that the airlines and the regulator support us, then that funding will be available in H7. And the sort of things that we are looking at there is the pharmaceutical facility, centralised cus- Complete peace of mind for your toms facilities, whether we need to build any additional sheds, all of those sort of big-ticket pharmaceutical and healthcare shipments items will begin to appear post-2020.”

Independent from third runway Platts insists all of these initiatives are not dependent on Heathrow getting permission for a third runway. ´7KDWSHULRGÀQLVKHVLQVRDOORIWKDW activity is happening independently of a third runway. What the third runway gives me is much better scale, much better scope and connection. So if we get the third runway, I can add 40 long haul destinations to the network; I can grow the capacity, the ability to carry the belly freight cargo; I can connect UK businesses better with the world. We will have more direct connections and – just like D SDVVHQJHU ² D ER[ OLNHV WR Á\ GLUHFW 6R opening up that network, getting penetration, higher-frequency, is just going to make cargo at Heathrow far more attractive. “But, whether or not we get the third runway, I need to make the processes slick, I need to Flying with care halve the throughput time, I need to make It is essential that the quality and integrity of your high value and temperature sensitive pharmaceutical and sure that the whole system here at Heathrow healthcare products is protected throughout the entire transportation cycle. LVUHDG\IRUWKHFDSDFLW\DQGWKHWUDIÀFWKDWLV Backed by our fleet of advanced Boeing 747-8 and coming. So, that is why we are going to invest 747-400 freighter aircraft and a brand-new purpose- built 3,000 m2 warehouse facility with temperature- and millions of that ten-year timescale, to revolu- humidity-controlled environments at our Luxembourg hub, we offer you speedy, reliable and tailored solutions tionise cargo, become that leading airport in to meet your sophisticated needs. Europe, halve throughput times, streamline the On and off ground, your pharmaceutical products are in the best hands with our dedicated team of highly trai- +2°C to +8°C +15°C to +25°C process, make it easier to do business here, ned and experienced professionals. And, as you would expect from true pioneers, we are the first GDP certified and to get those modern, clean, quiet aircraft airline in the world. here as well.” He says the ambition for 2030 is to be the [email protected] | www.cargolux.com leading airport in Europe for cargo in terms of timely and predictable cargo processes, hence the halving of throughput times. “And

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streamlining processes is about predictability,” him 10 years to take him where he was when 2040. So, we are forecasting round about 3.1 he explains. “The shippers and the forwarders he retired. So, it is that kind of timescale to million tonnes in 2040. want predictable gateways, predictable hubs, make improvements. “Again, there are huge macro economic and that is what we need to deliver, to become “So, 10 years to get that in play, that is 2025, variables in there, most notably China. But the preferred gateway in Europe. and then we absorb the additional volume if also load factors globally, and what the “So, between now and 2025, we do all we get the third runway, and then by 2030 we airlines do with their load factors, because that heavy investment in technology, process should be gunning for number one.” globally that is declining, although here at improvement, and in infrastructure, and then Heathrow we have much better load factors from 2025 to 2030, we are then in a world of Doubling cargo volumes than the global average. continuous improvement. So we are then into The cargo investment plan includes a target “The commitment we have made under a MXVWWZHDNLQJKHUHDQGWKHUHDQGUHÀQLQJDQG to double cargo volumes at Heathrow to third runway is to double throughput by 2040. continuing that innovation and that process im- 3.1 million tonnes by 2040, although with If we don’t get a third runway then quite clearly provement, to get us from being one of the best the airport currently operating at close to you are not going to deliver 3.1 million tonnes, to being the best.” capacity in terms of slots, that target would and I will have to rerun the calculations once I As part of his research, he sought out best only realistically appear achievable if the have that decision and we know for sure what practice at other airports, “to look at who we airport’s plans for a third runway go ahead. is going on.” should measure ourselves against. Everyone in “Having completed the strategy work we However, he then also argues that it could the industry told us that in Europe Schiphol is then commenced a forecast, and we have still be possible to reach 3 million tonnes even the best at the moment, and globally it is Hong now created a model that we can use over without a third runway, although this argument Kong. So we have had a look at what Schiphol time and update our forecast,” says Platts. seems to be more theoretical, in a world of is doing, and I met with Enno (Osinga). He has “So I can play with two-runway scenarios, much higher cargo load factors. been very helpful, and he explained the journey three-runway scenarios, macro economic in- “What we are seeing is that even in a two- that they have been on, and it is similar. It took dicators, and it will give me a forecast out to runway world, the up-gauging of aircraft types

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that we currently have, with the new generation LGHQWLÀHGRUWKLQJVWKHLQGXVWU\VDLG DLUFUDIWFRPLQJLQZLWKDVLJQLÀFDQWLQFUHDVHLQ they would like us to pay attention to. capacity, we will have enough capacity, belly “We took that list to the focus groups this hold capacity, to run 3 million tonnes of cargo. year before the summer and said ‘this is the “So, from an aircraft capacity point of view, big bucket of all the things you told us last year we have plenty now, there is plenty coming. that you would like. Which would you prioritise But the utilisation of that capacity is not as which would you de-prioritise?’ And through good as it could be. So, on some routes we WKDWSURFHVVZHLGHQWLÀHGVHYHQKLJKDQGPH are capacity constrained, and on some routes dium priority things, and it is those seven that we are not. And I think as the aircraft change, we are focusing on.” with the A350 coming online, the new B777 with the forwarding community as part of He says the others – the lower priorities – coming online, and later generations that are this strategy development is that there is haven’t gone away. “We will deliver all of them – very much belly freight friendly, they are ideal a percentage of freight currently trucked in fact, some of them could come online before for this hub; we are a passenger hub and those to the continent that could come through the high priorities – it is just that the low priority aircraft are fantastic. We want them to come Heathrow. So we need to make Heathrow will happen as I can get to them. We have got here, so I need to provide the right processes more attractive to forwarders so they do WRIRFXVWKHSULRULW\ERWKÀQDQFLDODQGWLPHRQ and infrastructure and make it attractive for the use Heathrow,” he argues. those high and medium priorities. So, what you airlines to bring those aircraft here, and for the Although some of Heathrow’s cargo facili- see in the strategy is exactly what the industry IRUZDUGHUVWKHQWRÀOOLWµ ties may not be perfect, there is no evidence told us they wanted, and the priorities they ap- Although Heathrow’s average cargo load fac- of airlines not sending the latest high bellyhold- portioned to them.” WRUVDUHVLJQLÀFDQWO\KLJKHUWKDQWKHJOREDODYHU capacity aircraft to Heathrow because of inad- Of the top priorities, redeveloping ‘the age – and on some routes over 90% – there is equate cargo infrastructure. horseshoe’ – the notorious, highly congested room for improvement on other routes. “There “One of our airlines only recently told us U-shaped truck access road consisting of is spare capacity in the existing system, so we they are up-gauging the aircraft because of Shoreham Road East and Shoreham Road FDQDEVRUEVRPHJURZWKZLWKWKHH[LVWLQJÁHHW the cargo demand on that lane,” Platts ob- West – was number one; number two was DQGDVWKDWÁHHWFKDQJHVPRUHFDSDFLW\ZLOOEH serves. “I also know from another airline that the control-post process; and number three available,” Platts asserts. they run a narrow-body aircraft on one par- was a facility airside for aircraft-to-aircraft ticular route and they have an airframe avail- transshipment. European competition able that could carry more cargo and they ´1RZ , FDQ·W GR D ORW DERXW WKH ÀUVW RQH “The question for the forwarders is how would like to bring it to Heathrow, but there is because I don’t own the horseshoe, but I will much are they going to send our way. They not the demand for cargo at that time of day. work with the landlord and all the stakeholders control which gateway the freight goes 6RLWLVGLIÀFXOWWRJHQHUDOLVHEXW,KDYHQRW in that space to make it as good as we possibly through – not me, not the airline. So, we can had an airline complain that they could not can, and that conversation has been going on provide the network, which we are doing; we bring a bigger aircraft in because the cargo for some time and will continue,” Platts says. can provide the aircraft capacity, which the facilities couldn’t cope.” “Heathrow’s experience is in collaboration and airlines are doing. It is now up to the for- bringing together different groups to achieve a warders to stop diverting UK exports to the Cargo consultation outcome common goal, and I will continue to do that on continent by truck and drop it into Heathrow Turning to the key messages of the consul- the horseshoe development. But only one third – and we’ll connect it to the world for them.” WDWLRQ3ODWWVVD\VWKHVHDUHUHÁHFWHGLQWKH RIRXUWUDIÀFJRHVWKURXJKWKHKRUVHVKRH²WKH He says not all of the freight diverted strategy and investment plans. “All the things rest goes through other estates. from Heathrow requires main-deck ca- I have talked about in the Q6 and H7 are “The second priority, the ground control post pacity, which is currently limited at the what the industry wants us to spend money processes, absolutely we can do something airport. “We don’t have a huge amount of on,” he explains. “If you go back to last about that. I’ve already had conversations with data, but the conversations we have had year’s consultation, through that process we my security colleagues about what we can do,

CARGO AIRPORTS AIRLINE SERVICES :LQWHU

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and I’m using technology to reduce the paper- Community coordinator at Heathrow meets their needs, and not just work. Because, actually, it is not the control And it seems that he has also effectively WKHKHUHDQGQRZ²,·YHJRWWRWKLQNÀYHRU post staff that is slowing it down; it is the han- taken on the role of coordinator for the years ahead”, he notes. dlers presenting incorrect paperwork that is Heathrow air cargo community, with regard “But they have asked us to take a lead slowing the process down. to e-Freight and other initiatives. role, to coordinate and lobby on their behalf, “So we need to work out how we can elimi- “Through the consultations last year and and I’m happy to do so. It will be a great re- nate those errors and speed up – and hope- in the focus groups this year, the industry has sult at the end of the day, and really drive us fully eliminate the paperwork altogether and do asked us to take a lead role in cargo,” he ex- towards that top position of being the best it electronically. But I need DFT support for that, plains. “So, I’ve asked them what they mean cargo airport in Europe.” because there is an aviation security element, by a ‘lead’, because to me ‘leadership’ means But despite this bullishness, he also down- and I will need customs support because there decision-making. SOD\VWKHLGHDWKDW+HDWKURZFRXOGQRZÀQDOO\ is a customs and excise element. But we will “They don’t want us to make decisions, have the makings of the kind of cargo commu- GHÀQLWHO\GRVRPHWKLQJRQWKDWRQH but they do want us to promote Heathrow, to nity-led approach that has been so transforma- “And the airside facility is very much within lobby government and other organisations tional at an airport like Schiphol. P\JLIW7KHDLUÀHOGLVYHU\WLJKWIRUVSDFHEXWLW to improve the cargo service offering that we “You know how slow the air cargo industry is is looking like I’ve got some space around the have. So, we are moving into that role, by invita- to change,” he notes. “Cargo 2000 is still not old T1 campus, so it will be in a central area. So tion. It is a complex world, but we have negoti- fully implemented; e-Freight is still not fully im- that will allow airlines to tranship without having ated complex issues on the passenger front for plemented; we are still using paper air waybills to go back to the cargo area. years. We will use that experience and those at a time when passengers are checking in on ´6RWKH\DUHP\ÀUVWWKUHHDQG,·PZRUNLQJ skillsets to bear on the cargo space. their phones and do not even print a boarding on those.” ´%XW ZH FDQ·W À[ HYHU\WKLQJ EHFDXVH LW LV card. So, the cargo industry is slow to change; 7KHIRXUWKSULRULW\LGHQWLÀHGLVWKHQHZWUXFN not down to us – we are largely divorced from there is a lot of investment required – I appreci- parking area and call-forth facility. “I’ve got to the process: we are not a forwarder; we are not ate that. And it is not my role to tell forwarders ÀQGWRDFUHVRIODQGDQG,·YHDOUHDG\EHHQ a shipper; we are not a handler; we are not a or airlines what to do. speaking to people about where we might put landlord. So, the things that we can directly in- ´+RZHYHU , FDQ SRLQW RXW WKH EHQHÀWV RI that.” Another priority is a “fast track”, although ÁXHQFHDUHOLPLWHG switching to e-Freight, for example, and that is Platts says that is linked to the control post pro- “But I am happy to facilitate and coordinate ZKDW,ZLOOGR²,ZLOOKLJKOLJKWWKHEHQHÀWVDQG cesses, and is already moving forward. on behalf of the industry. I’m planning a couple hopefully convince people that it is the right And another request is putting stillage of sessions a year to bring all of the stakehold- thing to do.” QQQ into the cargo area, the racking for the ers together so that we can debate the issues ULDs. “The baggage handling guys have it and work out and agree what we are going to near the baggage halls, so it is only right do. IATA is happy to support that, and I am really and proper that we have an area for cargo,” pleased that they are on board with that.” Platts argues. “All of these things are what He says Heathrow’s airlines are now re- the industry asked us to do.” ally keen to understand what he is trying to achieve, acknowledging that he also needs to Perceptible changes get out and speak with forwarders and ship- Although some of the changes will take pers, “to make sure that what we are providing more time to achieve, Platts argues that the airport’s new investment in cargo is already delivering results. “We have invested time and money in developing a strategy. We have listened to the stakeholders as to what they want. We have developed a shared ambition. We are working with lots of external agencies, so I’m already working with IATA on how we can go to e-freight. We are working with UK DTI on how we can support UK exports.”

CARGO AIRPORTS AIRLINE SERVICES :LQWHU General Cargo

Brussels Airport Perishables the world’s fi rst Pharmaceuticals CEIV Pharma certifi ed Outsized Cargo airport community Live animals Valuables

A heart for your cargo

For reliable and transparent transportation of your pharmaceuticals, Brussels Airport is your ideal partner with the highest concentration of CEIV Pharma certifi ed companies and specialised staff in Europe. You have a choice of CEIV Pharma certifi ed partners and regulator approved partners at BRUcargo for fast, reliable, safe and secure handling of your pharmaceuticals. For more information: Brussels Airport: [email protected] IATA: [email protected]

www.brusselsairport.be www.brucargo.be After an exceptionally strong start to the year that was buoyed by the US west coast ports disruptions, volumes have EHHQUHODWLYHO\ÁDWIRUPDQ\DLUSRUWV around the world, writes Will Waters TOP CARGO AIRPORTS REPORT

OUTSIDE THE TOP 100 HALIFAX STANFIELD INTERNATIONAL (YHZ) Subdued growth CARGO VOLUMES 2014: 32,004 tonnes (+8.5%) 2015 YTD Q3: 24,382 tonnes (+6.0%) Our cargo focus is a ‘niche’ primary export, our famous hardshell live lobster, in and other lesser amounts of seafood. The Chinese market demand has driven lobster export demand (to China) by over 400% in the past 5 years. Our increase is driven by capacity on Cargojet, Fedex, and Korean Air Cargo’s decision to rotate a freighter weekly via 2015 YHZ-ANC-INC. It’s almost a year since irports have reported rela- LQFUHDVHG E\ DURXQG \HDU RQ \HDU they made that commitment and it’s tively weak cargo growth DQGGRPHVWLFE\ been very successful. They are contem- plating a second frequency and we so far in 2015, particularly 7KH \HDU VWDUWHG H[FHSWLRQDOO\ VWURQJO\ also have interest from carriers like CAL, compared to passenger ZKHQ DLU IUHLJKW YROXPHV ZHUH EXR\HG E\ &DWKD\3DFLÀF/XIWKDQVDDQG4DWDU A :H·YHPDGHVLJQLÀFDQWFDSLWDOLQYHVW WUDIÀFWKDW JUHZ E\ DURXQG WUDIÀFVKLIWHG IURP VHD IUHLJKW DV D UHVXOW ments over the past 5 years - C$28 LQWKHÀUVWQLQHPRQWKVRI,QFRQ of the US west coast ports disruptions and million to extend our main runway (05/23) to 10,500 ft and C$8 million to WUDVWDQHPHUJLQJPDUNHWVORZGRZQOHGE\ congestion, continuing the strong end of enable local private investors to bring &KLQDKDVUHVXOWHGLQPRUHVXEGXHGJURZWK \HDUH[SHULHQFHGLQ)RUWKHÀUVWWZR the Gateway Facility (www.yhzgateway. com) out of the ground. in air freight volumes across most of the months of 2015, total air freight volumes at In our small part of the world, we value ZRUOG·V PDUNHWV WKLV \HDU 7RWDO JOREDO DLU $&,UHSRUWLQJ DLUSRUWV ZHUH XS PRUH WKDQ partnerships at all level of government, IUHLJKW YROXPHV LQFUHDVHG E\ DFURVV 6%, year on year, and more than 8% for with our air carrier partners and we’re deeply involved as members of ACI-NA, WKH JOREH IRU WKH ÀUVW WKUHH TXDUWHUV RI LQWHUQDWLRQDO IUHLJKW +RZHYHU VLQFH WKHQ for instance. DFFRUGLQJWR$LUSRUWV&RXQFLO,QWHUQD WKH PDUNHW KDV ÁDWWHQHG RII ZLWK DYHUDJH One of the best investments we’ve made is our cargo, and we just did ver- WLRQDO $&, ·V )UHLJKW)ODVK VWDWLVWLFV ZKLFK JURZWK EHORZ \HDU RQ \HDU LQ PRVW sions in Korean and Japanese. DUH EDVHG RQ D VLJQLÀFDQWVDPSOH RI DLU PDUNHWVULVLQJMXVWLQ6HSWHPEHUIRU ports that provide regular monthly reports H[DPSOH BULLISH OUTLOOK FOR 2016 WR $&, UHSUHVHQWLQJ DURXQG RI WRWDO +RQJ .RQJ +.* WKH ZRUOG·V ELJJHVW Our outlook for 2016 is bullish. The Canada-South Korea free trade agree- IUHLJKW WUDIÀF ZRUOGZLGH 2I WKDW \HDUWR LQWHUQDWLRQDO IUHLJKW KXE UHSRUWHG PRG ment went into effect Jan 01/15 and date freight growth, international tonnages HVWJDLQVRILQ6HSWHPEHUDQGPDMRU has already been positive for Korean

24 CARGO AIRPORTS AIRLINE SERVICES :LQWHU TOP CARGO AIRPORTS REPORT

TOP 50 WORLD CARGO AIRPORTS ACI WORLD AIRPORT RANKING: TOTAL FREIGHT (METRIC TONNES) 7KH$&,:RUOG$LUSRUW5DQNLQJWDEOHLVWDNHQIURPWKH$&,:RUOG$LUSRUW7UDIÀF5HSRUWZKLFKFRYHUVGHWDLOHGWUDIÀFVWDWLVWLFVIRURYHUDLUSRUWV LQPRUHWKDQFRXQWULHVE\WKUHHWKHPDWLFDUHDVSDVVHQJHUVFDUJR IUHLJKWDQGPDLO DQGDLUFUDIWPRYHPHQWV7KHUHSRUWDOVRLQFOXGHVWUDIÀF analysis, trend charts, country-by-country, region-by-region, and airport-by-airport data for the 2014 calendar year www.aci.aero COUNTRY FREIGHT FREIGHT RANK REGION CITY COUNTRY AIRPORT IATA CODE CODE 2014 % CHG HONG KONG, 1 ASP HONG KONG HK HONG KONG INTERNATIONAL AIRPORT HKG 4,376,349 6.0 CHINA 2 NAM MEMPHIS TN USA US MEMPHIS INTERNATIONAL AIRPORT MEM 4,252,218 2.9 CHINA (PEOPLE'S 3 ASP SHANGHAI REPUBLIC OF CN PUDONG INTERNATIONAL AIRPORT PVG 3,102,232 8.6 CHINA) 4 NAM ANCHORAGE AK USA US TED STEVENS ANCHORAGE INTERNATIONAL AIRPORT ANC 2,492,754 3.0 KOREA (REP OF 5 ASP INCHEON KR INCHEON INTERNATIONAL AIRPORT ICN 2,474,308 3.3 KOREA) UNITED ARAB 6 MEA DUBAI AE DUBAI INTERNATIONAL AIRPORT DXB 2,367,574 -3.1 EMIRATES 7 NAM LOUISVILLE KY USA US LOUISVILLE INTERNATIONAL AIRPORT SDF 2,220,679 3.5 8 ASP TOKYO JAPAN JP NARITA INTERNATIONAL AIRPORT NRT 2,097,811 6.0 9 ASP TAIPEI CHINESE TAIPEI TW TAIWAN TAOYUAN INTERNATIONAL AIRPORT TPE 2,072,602 6.2 10 EUR FRANKFURT GERMANY DE FLUGHAFEN FRANKFURT/MAIN FRA 2,051,190 1.8 11 NAM MIAMI FL USA US MIAMI INTERNATIONAL AIRPORT MIA 1,972,010 3.3 12 EUR PARIS FRANCE FR AÉROPORT DE PARIS-CHARLES DE GAULLE CDG 1,896,433 1.1 13 ASP SINGAPORE SINGAPORE SG SINGAPORE CHANGI AIRPORT SIN 1,843,800 0.3 14 NAM LOS ANGELES CA USA US LOS ANGELES INTERNATIONAL AIRPORT LAX 1,743,830 3.7 CHINA (PEOPLE'S 15 ASP BEIJING REPUBLIC OF CN BEIJING CAPITAL INTERNATIONAL AIRPORT PEK 1,740,362 0.5 CHINA) 16 EUR AMSTERDAM NETHERLANDS NL AMSTERDAM AIRPORT AMS 1,633,195 6.7 17 EUR LONDON UNITED KINGDOM GB HEATHROW AIRPORT LHR 1,499,082 5.3 CHINA (PEOPLE'S 18 ASP GUANGZHOU REPUBLIC OF CN GUANGZHOU BAI YUN INTERNATIONAL AIRPORT CAN 1,345,831 8.5 CHINA) 19 NAM CHICAGO IL USA US O'HARE INTERNATIONAL AIRPORT ORD 1,308,472 11.7 20 ASP BANGKOK THAILAND TH SUVARNABHUMI INTERNATIONAL AIRPORT BKK 1,233,141 -0.1 21 NAM NEW YORK NY USA US JOHN F. KENNEDY INTERNATIONAL AIRPORT JFK 1,222,752 1.7 22 NAM INDIANAPOLIS IN USA US INDIANAPOLIS INTERNATIONAL AIRPORT IND 1,066,815 -0.1 23 ASP TOKYO JAPAN JP TOKYO INTERNATIONAL (HANEDA) AIRPORT HND 1,024,007 15.0 24 MEA DOHA 4$7$5 4$ DOHA INTERNATIONAL AIRPORT DOH 980,115 13.2 CHINA (PEOPLE'S 25 ASP SHENZHEN REPUBLIC OF CN SHENZHEN BAOAN INTERNATIONAL AIRPORT SZX 963,871 5.5 CHINA) 26 EUR LEIPZIG GERMANY DE FLUGHAFEN LEIPZIG/HALLE LEJ 906,415 3.2 UNITED ARAB 27 MEA ABU DHABI AE ABU DHABI INTERNATIONAL AIRPORT AUH 797,069 12.8 EMIRATES UNITED ARAB DUBAI WORLD CENTRAL AL MAKTOUM 28 MEA DUBAI AE DWC 758,371 262.5 EMIRATES INTERNATIONAL AIRPORT 29 ASP KUALA LUMPUR MALAYSIA MY KUALA LUMPUR INTERNATIONAL AIRPORT KUL 753,899 10.7 30 EUR COLOGNE GERMANY DE KÖLN-BONN AIRPORT CGN 739,427 3.1 31 EUR ISTANBUL TURKEY TR ATATÜRK INTERNATIONAL AIRPORT IST 728,484 15.5 32 ASP OSAKA JAPAN JP KANSAI INTERNATIONAL AIRPORT KIX 722,732 9.6 33 EUR LUXEMBOURG LUXEMBOURG LU LUXEMBOURG-FINDEL INTERNATIONAL AIRPORT LUX 708,078 5.1 34 ASP MUMBAI INDIA IN CHHATRAPATI SHIVAJI INTERNATIONAL AIRPORT BOM 685,871 7.3 35 ASP NEW DELHI INDIA IN INDIRA GANDHI INTERNATIONAL AIRPORT DEL 682,594 16.6 CINCINNATI/NORTHERN KENTUCKY INTERNATIONAL 36 NAM CINCINNATI OH USA US CVG 650,979 10.6 AIRPORT 37 LAC BOGOTA COLOMBIA CO AEROPUERTO INTERNACIONAL EL DORADO BOG 636,657 2.3 38 ASP JAKARTA INDONESIA ID SOEKARNO-HATTA INTERNATIONAL AIRPORT CGK 626,046 -0.4 DALLAS/FORT 39 NAM USA US DALLAS/FT WORTH INTERNATIONAL AIRPORT DFW 616,736 7.6 WORTH TX 40 NAM NEWARK NJ USA US NEWARK LIBERTY INTERNATIONAL AIRPORT EWR 606,824 0.6 41 EUR LIEGE BELGIUM BE LIÈGE AIRPORT LGG 591,175 5.3 HARTSFIELD-JACKSON ATLANTA INTERNATIONAL 42 NAM ATLANTA GA USA US ATL 555,855 -1.7 AIRPORT CHINA (PEOPLE'S 43 ASP CHENGDU REPUBLIC OF CN CHENGDU SHUANGLIU INTERNATIONAL AIRPORT CTU 547,714 9.2 CHINA) 44 ASP MANILA PHILIPPINES PH 1,12<$48,12,17(51$7,21$/$,53257 MNL 520,403 13.8 45 NAM OAKLAND CA USA US OAKLAND INTERNATIONAL AIRPORT OAK 497,845 4.1 46 LAC SÃO PAULO BRAZIL BR GUARULHOS INTERNATIONAL AIRPORT GRU 482,092 3.0 47 EUR MILAN ITALY IT MILANO MALPENSA MXP 459,696 9.1 48 NAM TORONTO ON CANADA CA TORONTO PEARSON INTERNATIONAL AIRPORT YYZ 440,566 8.4 49 NAM HOUSTON TX USA US GEORGE BUSH INTERCONTINENTAL AIRPORT IAH 433,434 7.9 50 EUR BRUSSELS BELGIUM BE BRUSSELS NATIONAL AIRPORT BRU 427,732 8.4

:LQWHU CARGO AIRPORTS AIRLINE SERVICES TOP CARGO AIRPORTS REPORT

AIRPORT FOCUS: Brussels (BRU: 50th in 2014 with 427,732 tonnes; +8.4%)

Brussels Airport noted an increase of issues. We are in the process of giving Steven DOPRVWIRUWKHÀUVWPRQWKVRI this organisation a legal status and its Polmans compared to 2014, resulting in a volume own budget so it can act more strongly Head of of 365,402 tonnes. The biggest increase on behalf of the cargo community. Cargo is the volumes transported on full cargo In 2015, we developed a cargo Sales & airlines, with growth of 23.5%. Main community platform in the cloud, to Marketing, reasons are the start of several new full manage big data and offer logistical Brussels cargo customers end of 2014 and in applications to companies, groups Airport 4DWDU$LUZD\V&DUJR(WKLRSLDQ RIFRPSDQLHVRUWRWKHEHQHÀWRIWKH Company Airlines Cargo, Yangtze River Express, FRPPXQLW\7KHÀUVWDSSOLFDWLRQLVEHLQJ Kelowna Flightcraft and at the end of ÀQLVKHGDQGVHYHUDOSURMHFWJURXSVDUH October, Emirates Sky Cargo. Also the dealing with future solutions we can of- volumes transported by DHL have shown fer thanks to this innovative approach. steady growth in recent years, and for on the handlers site. By doing so, we use 2015 stands at 7.5% compared to 2014. a common IT platform to facilitate the Belly hold cargo is stable, with growth of PLANS business but offer each company an IRUWKHÀUVWTXDUWHUV Our biggest challenge will be to keep individual solution without making them to rely on others. up with all the projects we have started and to make sure we can deliver as That said, we also feel a need for RECENT INITIATIVES promised. So rather than taking up new a much more open communication We have been very active in several challenges, we will focus on the continu- between airports to work together on areas, both towards the airlines and the ation of the projects above. But when different solutions and looking at the cargo community in order to smoothen an opportunity or need crosses our path, bigger picture than just our own back RSHUDWLRQVDQGDWWUDFWPRUHFDUJRÁRZV we will be ready to take it up or tackle it. yard. This is a very important evolution Something we consider as a strategic if we want to grow air cargo volumes goal is the growth and improvement WIDER LOGISTICS SECTOR again and gain trust from shippers. when it comes to time- and temperature- sensitive cargo: both pharmaceuticals As described above, the wider logistical and perishables. Together with IATA and sector is very important for us. Forward- CURRENT INDUSTRY ISSUES the pharma shippers we developed the ers are considered prime customers for Slow growth, declining yields, digitization CEIV programme, and we are organising us and we involve them as much as pos- of the cargo process, security, … will DVHFRQGZDYHRIFHUWLÀFDWLRQVZKLFK sible. Hence the focus on investments in remain topics that affect our business. ZLOOUHVXOWLQFRPSDQLHVEHLQJFHUWLÀHG the landside areas at the airport. Same While yields are declining, investments at Brussels Airport. In the mean time, goes for the shippers: we are in regular are needed. So more cooperation we also started developing together contact with them to see what we can for strengthening our industry will be with our cargo community and some GRIURPRXUVLGHWRLPSURYHFDUJRÁRZV HVVHQWLDO,IZHNHHSRQÀJKWLQJRXURZQ pharma shippers a passive cool solution at the airport. battles, we will all lose in the end. for tarmac transport, something we will RIÀFLDOO\ODXQFKLQ'HFHPEHUWKLV\HDU COLLABORATIVE CARGO COMMUNITY OUTLOOK FOR 2016 We continue to invest in new facili- INITIATIVES SIMILAR TO SCHIPHOL’S I am rather negative about the outlook ties at our cargo zone BRUcargo, both ‘MILK RUN’ PROJECT? for 2016. I do not see a strong growth in ÀUVWOLQHDQGVHFRQGOLQH:KLOHLQ We strongly believe in collaborative the world, and no recovery in Europe the second line we have some new cargo community initiatives, as this is the when it comes to volumes. Capacity IRUZDUGHUZDUHKRXVHEHLQJÀQLVKHG way forward for growth and improve- growth goes on, yields will remain under ZHDOVRVWDUWHGRQRXUÀUVWOLQHIDFLOLWLHV ment. Depending on the local situation pressure. I do believe that fuel prices will with a new 35,000 sqm facility for DHL Ex- however, different solutions are needed. remain on the low side, helping us a lot. press. This new sorting hub will triple their We do not have the same congestion But it is not something we should take capacity. Final plans are also made for problems as Schiphol currently, so also for granted - it should encourage us to a new handling facility and a complete different needs. With our cargo com- tackle all those issues that are a cost refurbishment of an existing one, total- munity platform we also want to focus IRURXULQGXVWU\EHFRPHPRUHHIÀFLHQW ling 50,000 sqm. more on IT related solutions for logistical and work harder to become the mode For three years, we have had an challenges: slot and gate allocation for of transport again for many shippers organisation that groups all stakeholders example. This reduces waiting times for and products rather than being used as and discusses common projects and WKHIRUZDUGHUVDQGLQFUHDVHVHIÀFLHQF\ last option.

&KLQHVHKXEVVXFKDV6KDQJKDL 39* DQG volumes, much of the cargo increases in Unspectacular picture %HLMLQJ 3(. ZHUH ÁDW ZLWK UHVSHFW WR WKHUHJLRQFDQEHDWWULEXWHGWRWKHERRVWLQ 2WKHUKLJKOLJKWVIURPDURXQGWKHZRUOGUH \HDURYHU\HDU FKDQJHV LQ YROXPHV 7KH LQWHUQDOGRPHVWLFGHPDQG:KHUHDV1RUWK YHDODPL[HGEXWXQVSHFWDFXODUSLFWXUHZLWK $VLD3DFLÀFUHJLRQDVDZKROHH[SHULHQFHG $PHULFD·VLQWHUQDWLRQDOIUHLJKWLQFKHGXSE\ YROXPHVLQPDQ\FDVHVÁDW,QWKHÀUVWQLQH DVOLJKWJDLQRILQDLUIUHLJKWWUDIÀFLQ RQO\WKHUHJLRQ·VGRPHVWLFDLUIUHLJKW PRQWKVRIWKLV\HDU+RQJ.RQJKDQGOHG 6HSWHPEHU PDUNHWJUHZE\\HDURYHU\HDULQ6HS million tonnes of cargo, representing growth But thanks to stronger economic funda- WHPEHU 0HPSKLV 0(0 )HG([·V PDLQ RYHUWKHVDPHSHULRGODVW\HDU2QD PHQWDOV LQ DGYDQFHG HFRQRPLHV 1RUWK JOREDO KXE DQG /RXLVYLOOH 6') WKH 836 UROOLQJ PRQWK EDVLV FDUJR WKURXJKSXW $PHULFDQ DLU IUHLJKW KXEV DFKLHYHG WKH KXEH[SHULHQFHGDQLQFUHDVHRIDQG JUHZE\WRPLOOLRQWRQQHV JUHDWHVWJDLQVLQYROXPHVLQ6HSWHPEHU$&, UHVSHFWLYHO\LQWHUPVRI\HDURYHU\HDU %XW GHVSLWH WKLV ÁDW SHUIRUPDQFH WKLV UHSRUWV :LWK JURZWK RI LQ DLU IUHLJKW JURZWKLQYROXPHV \HDU +RQJ .RQJ ORRNV OLNHO\ WR UHWDLQ LWV

26 CARGO AIRPORTS AIRLINE SERVICES :LQWHU TOP CARGO AIRPORTS REPORT

SRVLWLRQ DV WKH ZRUOG·V EXVLHVW FDUJR DLU- &DUJR:HH[SHFW&(7$WREHUDWLÀHGLQ (cargo incentive programme) and SRUW 9ROXPHV WKURXJK WKH ZRUOG·V VHFRQG 4RIHOLPLQDWLQJRUUHGXFLQJWDULIIV property license fees are real advantages between Canada and the EU. which attract airlines and operators. For - ODUJHVW FDUJR DLUSRUW 0HPSKLV ,QWHUQD Though there are no timelines, the Trans- the past two years, in addition to their 5 WLRQDOURVHE\MXVWRYHULQWKHÀUVWQLQH 3DFLÀF3DUWQHUVKLSLVH[SHFWHGWRRIIHU B777 services to Dubai, Emirates has of- VLPLODUEHQHÀWVQ IHUHGDZHHNO\FDUJRRQO\ÁLJKW&KDUWHU PRQWKV RI WR PLOOLRQ WRQQHV ÁLJKWVDUHDOVRDQDUHDRIJURZWK$URXQG RIWKHVHÁLJKWV FDUU\LQJFDUSDUWV WR :LWK VWURQJ SDUFHO YROXPHV IRUHFDVW WKLV Romania were handled in August. &KULVWPDVSHDNVHDVRQIRULWVELJJHVWFXV- LYON (LYS) CARGO VOLUME DEVELOPMENT WRPHU )HG([ 0HPSKLV FRXOG PDNH XS Despite two years of double-digit growth, COLLABORATIVE COMMUNITY VRPH JURXQG ² DOWKRXJK +RQJ .RQJ ZDV at the end of September, cargo had INITIATIVES maintained an increase of 2% in com- DOVRVHHLQJVWURQJYROXPHVLQODWH2FWREHU We are working a collaborative, commu- parison with the same period in 2014, with nity approach on a number of develop- DQGHDUO\1RYHPEHUDQGVRORRNVOLNHO\WR 35,865 tonnes transported. ments at the site, as with the develop- KDQJRQWRWKHWRSVSRW ment of front-line terminals, the site will RECENT INITIATIVES HYROYH7KHÁRZDQGFLUFXLWRIH[LVWLQJ 0HDQZKLOH DIWHU RYHUWDNLQJ +HDWKURZ goods transfers will also change. We are We have been working on our infrastruc- therefore in the process of exchange with ODVW \HDU WR EHFRPH WKH ZRUOG·V EXVLHVW ture, more generally across the airports, operators present on the site to work out LQWHUQDWLRQDO SDVVHQJHU DLUSRUW WKH 0LG- but also for cargo, including aircraft how procedures and ways of working on parking stands dedicated to cargo, the site will change. GOH (DVW·V ELJJHVW FDUJR DLUSRUW 'XEDL which opened last March. This allows for an increase in parking and optimal We are at the beginning of this process, ,QWHUQDWLRQDO KDV UHFRUGHG UHODWLYHO\ ZHDN operational ease. but it is something that we are taking into FDUJR JURZWK WKLV \HDU &DUJR WUDIÀF IRU account. The ‘Milk run’ concept (devel- Strengthened by its location in the heart oped at Schiphol) could be duplicated, WKHQLQHPRQWKVWR6HSWHPEHUWRWDOOHG of a region renowned in the pharmaceu- or at least be adapted to the situation WLFDOÀHOG&DUJR3RUWFRQÀUPVLWVSRVLWLRQ- WRQQHV XS IURP WKH in Lyon in a few years. We are considering in the refrigeration sector (2/8°C, ing this for freight transfers, but we are WRQQHVVKLSSHGGXULQJWKHÀUVW 15/25°C and -22°C) with the commission- also considering joint development of ing of additional spaces at 15/25°C. QLQHPRQWKVODVW\HDU infrastructure for cold storage, for example, or for the treatment of horses. These +RZHYHU WKLV UHÁHFWV WKH WUDQVIHU RI PLANS FOR THE COMING 18 MONTHS considerations would in time lead to an IUHLJKWHUDFWLYLWLHVIURP'%;WRVLVWHUDLUSRUW LQFUHDVHLQSURGXFWLYLW\DQGHIÀFLHQF\LQ %HOO\FDUJRZLOOEHQHÀWIURPQHZFDSDFLW\ cargo transfers, but also gains in terms of - available from the 17 June 2016, the start $O0DNWRXP,QWHUQDWLRQDO'XEDL:RUOG&HQ date for Air Canada’s service from Lyon environmental impact. WUDO ':& ZKLFKKDVVHHQFDUJRYROXPHV to Montréal, which will operate 5 services a week. The line will be operated by CURRENT INDUSTRY ISSUES FRQWLQXHWRERRP)ROORZLQJJURZWKRIPRUH B767s, with an average cargo capacity of 7KHHFRQRPLFFULVLVKDVLQÁXHQFHGRXU 10 tonnes. WKDQODVW\HDUDV(PLUDWHVPRYHGLWV DFWLYLW\DVLQVRPHZKDWGLIÀFXOWWLPHV IUHLJKWHUVWKHUHIURP'%;ODVW0D\':&UH- Finally, in order to develop the transport companies are looking for more economi- of horses, a new area of activity explored cal means of transport to transfer their FRUGHGIXUWKHU\HDURQ\HDUJURZWKRI with CargoPort, an additional approval cargo over large distances; however LQWKHÀUVWKDOIRIWRWRQQHV for equine BIP (Border Inspection Post) is the heart of freight business remains expected by the end of the year, which unchanged: there are certain products 9ROXPHVDW6RXWK(DVW$VLD·VELJJHVWFDU- ZLOOPDNH/\RQWKHÀUVWDLUSRUWHQWU\SRLQW which can only use air freight. We can see JRDLUSRUW6LQJDSRUH&KDQJLZHUHDOVRÁDW to the southern half of France for this spe- that there are developments that are not FLÀFW\SHRIFDUJR7KLVZRXOGFRPSOHWH cyclical, but much more serious especially WKLV\HDU,QWKHÀUVWQLQHPRQWKVRI the export process which, since 2013, has in terms of modal shift in the method of FDUJRVKLSPHQWVKHOGVWHDG\DWPLOOLRQ handled 850 horses in Lyon, mainly on transport used, sometimes with a more ERDUG(PLUDWHVFDUJRÁLJKWV systematic use of road or sea transport for WRQQHV P WRQQHV GHVSLWH D certain destinations. Q VWURQJSHUIRUPDQFHLQ6HSWHPEHU WIDER LOGISTICS FACILITIES 0HDQZKLOH (XURSH·V ELJJHVW FDUJR DLU- Lyon-Saint Exupéry airport is ranked MAASTRICHT AACHEN second in France in terms of freight (air SRUW)UDQNIXUWVDZLWVFDUJRYROXPHV DLU- and road combined) with around 150,000 (MAA) IUHLJKWDLUPDLOH[FOXGLQJWUDQVLWFDUJR GH- tonnes handled. VOLUME DEVELOPMENT FUHDVHE\WRDERXWPLOOLRQWRQQHV CargoPort, Lyon Airport’s freight-dedicat- Maastricht Aachen Airport (MAA) ed zone, covers an area of 50 hectares handled 80,000 tonnes of air freight in LQ WKH ÀUVW QLQH PRQWKV RI PDLQO\ and 200 hectares of land reserve. Its 2014. We expect this volume to be stable UHÁHFWLQJ WKH RYHUDOO ZHDN JOREDO WUDGH 25,000sqm freight terminal includes a in 2015. 720sqm unit for animal products and per- environment and a slowdown in emerg- ishable goods (European PIF), as well as RECENT INITIATIVES AND PLANS LQJ HFRQRPLHV )UDQNIXUW $LUSRUW KDQGOHG various specialised storage units such as refrigerators (2/8°C, 15/25°C and -22°C). The handling company Maastricht Han- DURXQGPLOOLRQWRQQHVRIFDUJRLQ Other private terminals complement the dling Services, a 100% subsidiary of MAA, EHFDPH,6$*2FHUWLÀHGLQ2FWREHU $QG 1RUWK $PHULFD·V EXVLHVW LQWHUQD- range of logistics solutions available on the site. The zone’s 60 different freight and is furthermore fully e-Freight compli- WLRQDO FDUJR DLUSRUW 0LDPL DOVR UHFRUGHG operators, with infrastructure designed ant. A new 9,000sqm cargo terminal will become operational in the end of 2015. ÁDWFDUJRYROXPHVLQWKHÀUVWQLQHPRQWKV for every type of cargo, and the airport’s 24/7/365 opening time, as well as Two new platform positions for B747-800Fs ULVLQJMXVW\HDURQ\HDUWRPLO- competitive tariffs in terms of aeronautical will be built in the beginning of 2016. A OLRQWRQQHV

:LQWHU CARGO AIRPORTS AIRLINE SERVICES 27 TOP CARGO AIRPORTS REPORT

AIRPORT FOCUS: Milan Malpensa (MXP: 47th in 2014 with 459,696 tonnes; +9.1%) VOLUME DEVELOPMENT Cargo growth has continued in 2015, with volumes up 9.1%, year on year, in the ten months to October, continuing the excellent result of 2014 (+9%). This performance is particularly strong considering the weakness of the wider Italian air cargo market in 2015, where CASS data (January-September) indicates little or no increase overall, while other Italian airport have seen an average increase of just 1%. As a result, Malpensa has consolidated its leading position in the Italian cargo market, increasing its PDUNHWVKDUHIRUÁRZQFDUJRWR XS Trans). The €15 million FedEx expansion all operators (airlines, handlers, customs, from 53% in 2014). will triple FedEx’s handling capacity at forwarders) at the airport. Following a MXP, where it expects to handle 20,000 test phase, this is already operating in a 7KHVHÀJXUHVDOVRFRQÀUPWKDWSDUWRI GDLO\VKLSPHQWV:LWKZHHNO\ÁLJKWV pilot phase and allowing savings in costs WKH5)6WUDIÀFWKDWZDVSUHYLRXVO\WUXFNHG and almost 500 weekly truck connections and times in the logistic chain, MXP says. to other European Airports has been di- throughout Europe, MXP will be FedEx’s YHUWHGRQWR0;3ÁLJKWV,QIDFW5)6IURP third hub in Europe after Paris CDG and other Italian airports (excluding MXP) in Cologne-Bonn airports. INDUSTRY OUTLOOK September 2015 saw a YTD decrease of Elsewhere, an expansion of the aircraft MXP expects further growth from express 18%, according to Italy’s airports associa- operators DHL and FedEx, and from the tion Assaeroporti. apron has been completed, with seven new parking stands for wide bodies (up leading freighter carriers already operat- MXP operator SEA Milan Airports to 13 for narrow bodies). Other improve- ing in Malpensa such as Cargolux Italia, expects to close 2015 with more than ments have been made in recent $LU%ULGJH&DUJR4DWDU6DXGL1LSSRQ 490,000 tonnes, a historical record for months, especially in security (wide truck Cargo, which are expected to put in Malpensa Airport - even higher than manoeuvring areas with access control more capacity. It also expect in two the volumes registered in 2007 (470,000 and video surveillance) and pharma \HDUVWRVHHWKHÀUVWHIIHFWVRIWKH$OLWDOLD tonnes) when Alitalia Cargo operated (dedicated facilities and two cargo Etihad strategic partnership. Capacity ÀYHIUHLJKWHUVIURP0;3DQG&DUJRLWDOLD KDQGOHUV&(,9,$7$SKDUPDFHUWLÀHG IURPORQJKDXOSDVVHQJHUÁLJKWVLVDOVR also had three freighters based there. increasing; a new service to Santiago de MXP expects pharmaceutical volumes Chile and Sao Paulo operated by Latam ([SRUWÁRZVDUHGULYLQJJURZWKEXW will increase in importance thanks to imports are also continuing to recover started on 5 November 2015. WKHQHZ&(,9FHUWLÀFDWLRQMXVWUHDFKHG - thanks to an increase in domestic by the two cargo handlers. In recent :KLOHFDUJRWUDIÀFLQ(XURSHLVVWDJ demand, improvements in manufac- months, both have improved their facili- QDQWDQGLPSRUWH[SRUWÁRZVLQ,WDO\DUH turing activity and, for a small part, to ties dedicated to pharma, adding more broadly stable, Malpensa Airport expects EXPO 2015. MXP believes the positive than 2,000 sqm of temperature-con- to continue growing, mainly thanks to: cargo trend is an important signal of the trolled warehouse spaces dedicated to the recovery of cargo volumes from economic recovery that has been taking this kind of shipments (loose or in ULDs). RFS (air cargo that, from its catchment place in Italy for some months. area, goes by truck to other hubs in An additional area where the Mal- Europe); Cargo carriers increasing their SHQVD&DUJR&LW\DSURQDQGÀUVWOLQH freighter capacity, in order to attract IMPROVEMENT PLANS warehouses could be further expanded, FDUJRÁRZVJHQHUDWHGRXWVLGHRIWKH New infrastructure under a €100 million could be available within two to three immediate current catchment area (e.g. expansion of Malpensa Cargo City will years. Switzerland and southern France). “This double existing freight handling capac- target will be pursued by the quality of ity from 500,000 tonnes to around 1 air cargo service services, the improve- million tonnes per year. A new 35,000sqm CARGO COMMUNITY INITIATIVES ment of infrastructure and, better road warehouse for Fedex will be ready for Malpensa is investing in “innovation connectivity,” MXP said. A new highway mid 2016 and a second warehouse of technology” in the form of its “Smart connecting Malpensa to Switzerland 15,000 sqm, ready for 2017, will be rented city” project, an “ecosystem” for cargo and eastern Italy was built for EXPO2015 to two new cargo handlers (WFS and an information sharing aiming at simplifying (25km from MXP) and will be extended in Italian air cargo handler company, Beta the exchange of information between the next few years.

:KLOH WKHUH DUH VRPH H[FHSWLRQV WKLV than 16,000 freight forwarding agents, it DQGKHQFHIXHOVXUFKDUJHOHYHOV([SUHVVHG \HDU IRU H[DPSOH $EX 'KDEL UHFRUGLQJ HVWLPDWHG WKDW JOREDO DLU FDUJR YROXPHV LQ 86 RU &1< :RUOG$&' QRWHG D

28 CARGO AIRPORTS AIRLINE SERVICES :LQWHU TOP CARGO AIRPORTS REPORT

further 9,000sqm of cargo terminal ca- CURRENT INDUSTRY ISSUES year-to-date. Among US airports that pacity, including cool-chain facilities and At MAA, we regard speed, quality, and report to Airports Council International - RIÀFHVSDFHIRUIRUZDUGHUVZLOOEHDGGHG ÁH[LELOLW\LQWKHKDQGOLQJSURFHVVDJDLQVW North America, we believe MCO would in 2017 together with another two new a competitive price - as our USPs. When rank #26. platform parking positions for B747-800Fs. such high standards are not met, however, In terms of wider logistics developments, market positions will deteriorate. a 100ha logistics business park, Aviation RECENT INITIATIVES Valley, is being developed right next to the We have recently reviewed our air cargo airport’s cargo terminals. OUTLOOK FOR 2016 resources - physical facilities and allied We are very optimistic for 2016; the fact services - as well as interviewed our current that Ethiopian Cargo started operations cargo tenants and found unanimous to/from MAA as from October this year satisfaction. MCO has surplus on-airport ZLOOERRVWRXUJURZWKÀJXUHVLQWKHGRXEOH cargo warehouse space, is ramp-rich, digits next year. and already has third-party handling with The potential growth for a regional cargo main-deck loaders capable of accom- airport like Maastricht Aachen Airport is modating not only our current users but high; creating the right infrastructure for any chartered or scheduled freighters the right carriers in this volatile market is the that may be required. Because Orlando, challenge of the coming years. Q Florida is one of North America’s most popular passenger destinations, the airport has enviable international carrier service COLLABORATIVE CARGO COMMUNITY ORLANDO INTERNATIONAL (MCO) providing belly cargo capacity on direct INITIATIVES SIMILAR TO SCHIPHOL’S international routes, while the domestic CARGO VOLUME DEVELOPMENT market is dominated by integrated carriers ‘MILK RUN’ PROJECT? 2UODQGR,QWHUQDWLRQDO$LUSRUWÀQLVKHG (similar to most US airports). Consequently, This is an interesting concept, but the with just under 173 thousand short tons of the most notable cargo improvements close relationship between forwarders total cargo (157,000 tonnes) - good for in the market have not come from the and our handling company has already a 1.3% increase over the previous year. airport but rather from the addition of for many years been based on collabo- For the eight months through August new-entry international airlines that have rations like this. 2015, MCO is up about 6.8% for the added capacity and new direct routes.

:LQWHU CARGO AIRPORTS AIRLINE SERVICES 29 TOP CARGO AIRPORTS REPORT

.LORPHWUHV )7.V ZDVXSE\\HDURQ ODUJHO\ WUDFNV DQDHPLF JURZWK LQ WUDGH \HDULQWKHQLQHPRQWKVWR6HSWHPEHU ´$OWKRXJK VOLJKWO\ LPSURYHG IURP $XJXVW ZKLOH WRWDO DYDLODEOH IUHLJKW FDSDFLW\ $YDLO WKHJOREDOWUHQGLVIUDJLOHDQGWKHLPSURYH DEOH)UHLJKW7RQQH.LORPHWUHVRU$7.V ULVH PHQWLVQDUURZO\EDVHGµKHQRWHG´*URZWK E\ UHSRUWHG E\ (XURSHDQ FDUULHUV UHÁHFWV 'LVFXVVLQJ WKH PDUNHW LQ 6HSWHPEHU positive trends in trade with Central and ,$7$·V'LUHFWRU*HQHUDODQG&(27RQ\7\OHU (DVWHUQ(XURSHDQHFRQRPLHVDVZHOODVD said the weakness in air cargo markets general improvement in manufacturing in

AIRPORT FOCUS: Munich (MUC: 72nd in 2014 with 291,475 tonnes; +8%)

Markus a lifting capacity of 35 tonnes, it is one of Heinelt, the largest loading vehicles worldwide - director of which only a few airports can offer. The FDUJRWUDIÀF ‘Champ350’ easily reaches the main development deck on wide-body aircraft and can even transport heavy loading units.

PLANS Currently we are examining opportunities to expand our cargo areas by 20,000 PLANS square meters of additional space due Airport management will be looking at to requirements by clients. operational improvements that might VOLUME DEVELOPMENT reduce tug times from the principal With a total of 279,600 tonnes from cargo complex to the passenger ramps January to October 2015, Munich Airport COLLABORATIVE ‘MILK RUN’ TYPE for international belly cargo. reached a 9.4% gain in cargo tonnage CARGO COMMUNITY INITIATIVES? compared to the prior year, also setting Our concept is different since 95% of a new record for growth at Munich Air- the cargo handling processes are done WIDER LOGISTICS SECTOR SRUW$PRQJWKHWRSÀYH*HUPDQFDUJR directly ‘under one roof’ on Munich Air- Unlike more congested gateways in the airports, Munich Airport is reporting the port’s campus. The infrastructure is tailored southeastern region, MCO currently has strongest growth. to the logistic companies’ and airlines’ surplus capacity in strategic areas on The main factor behind this develop- needs. The freight terminals (airlines, airport. Consequently, multiple freight ment is the steadily increasing role as a handling and logistics companies) are di- forwarders are already located on cargo hub. Munich Airport already offers UHFWO\OLQNHG2YHUODSSLQJÁRZVRIWUXFNHG airport and if needed, the airport could a large number of direct daily connec- freight are practically eliminated. This accommodate more. tions to 45 intercontinental destinations saves time and costs for our clients and worldwide. And, over the course of last makes Munich Airport one of the world’s year and from the start of the 2015 sum- fastest and most attractive hub airports. OUTLOOK mer timetable, some airlines substantially We have no reason to expect anything EXPSHGXSWKHQXPEHURIÁLJKWVRQ but continued growth in 2016, as no existing long-haul routes and also added CURRENT INDUSTRY ISSUES PDFURHFRQRPLFLQÁXHQFHVDSSHDU new ones. A challenge for the cargo business likely to counter the growth we have in Germany will be the bilateral air enjoyed in 2014 and thus far in 2015. The New airline clients such as Kuwait transport treaties. Decisive for Munich introduction of new air service by carriers Airways and Mahan Air have also Airport’s further cargo growth will be such as Emirates in September 2015 ODXQFKHGÁLJKWVIURP0XQLFKLQ the successful implementation of major bodes well for growth, as regional freight The resulting gains in cargo capac- infrastructure projects such as a third forwarders continue to take advantage LW\²VSHFLÀFDOO\EHOO\FDSDFLW\²KDYH runway, which is waiting for approval by of new capacity and routes. Q been effectively marketed in Munich the airport’s shareholders. and were enthusiastically embraced by customers. This has given Munich Airport a big boost. However, the segment SOFIA (SOF) OUTLOOK FOR 2016 CARGO VOLUME DEVELOPMENT posting the most robust gains in Munich The outlook for 2016 is very positive. – contrary to all prevailing trends – is We are expecting further growth for In 2014 the cargo and mail volume at WKHIUHLJKWHUWUDIÀFVXEVHJPHQWNQRZQ the cargo segment due to new clients, 6RÀD$LUSRUWJUHZE\DQDYHUDJHLQ as ‘general cargo’. Starting about two new routes, and increasing frequencies comparison to 2013 (to 17,741 tonnes), years ago with the launch of a sched- on existing routes. Furthermore, various while in 2015 (Jan-Sep) the growth is uled service by Cargolux, followed by forwarders are planning to set up their 7.6% (to 13,406 tonnes). This upward the rapid expansion of AirBridgeCargo hubs at Munich Airport, which will give us WUHQGLVGULYHQE\WKHVLJQLÀFDQWLQFUHDVH LQ0XQLFKDQGPRUHUHFHQWO\E\ÀYH a further boost next year. in volumes of the integrators. ZHHNO\ÁLJKWVE\

CARGO AIRPORTS AIRLINE SERVICES :LQWHU www.bahrainairport.com TOP CARGO AIRPORTS REPORT

AIRPORT FOCUS: Tokyo Narita (NRT: 8th in 2014 with 2,097,811 tonnes; +6%) For the coming months we plan a total renovation of the warehouse for import VOLUME DEVELOPMENT and exports (Export: 44%, Import: 56%). and export. \HDURQ\HDULQÀUVWVL[ Communications equipment imports In recent years in the area around months. were particularly strong owing in part to 6RÀD$LUSRUWDQXPEHURIODUJHORJLVWLFV ,QWKHÀUVWKDOIRIFDUJRVDZD the popularity of smartphones. In other FHQWUHVZHUHEXLOWZKLFKRIIHUÀUVWFODVV satisfactory year-on-year increase of items, imports and exports of chemicals RIÀFHVDQGKDQGOLQJVWRUDJH 2.3%. With the yen settled at lower levels including pharmaceuticals is also the and demand for air transport increasing key item. This trends is almost the same due to the cargo handling delays in the with the past. OUTLOOK ports on the US West Coast in February With increased demand in exports The active industry development in and March this year, exports surged by and transit cargo, the airlines are Bulgaria will continue to grow over the 14.1%. In contrast, imports fell 5% due to working to expand the supply side by coming years, especially the export, a protracted slump in demand. The 0.4% introducing large aircraft with plenty and this will lead to increase of ship- increase in transit cargo was a sustained of cargo space (B747-8F for cargo ments transported by air. In 2016 we positive in the face of weakened cargo flights and B777 for belly cargo, etc.), expect to increase the cargo export activity in China and Hong Kong. particularly on the busy cargo-inten- consignments by 5-7%, while those of Looking at the results of July-Septem- sive routes between Asia and North imports by 3-5%. Q ber, while imports and transit cargo kept America. This is a key factor in the the same trend, exports got down slightly increase in cargo traffic. over last year. SOUTHWEST FLORIDA In 2014, international air cargo at INITIATIVES INTERNATIONAL (RSW) Narita Airport increased 5.3% to approxi- In the face of the shift to sea transport CARGO VOLUME DEVELOPMENT mately 2.04 million tonnes. Outbound due to advances in the supply chain Cargo volumes have been relatively rose 8.9% to 940,000 tonnes and inbound and intensifying competition between ÁDWDW56:KROGLQJDWDSSUR[LPDWHO\ rose 2.4% to 1.10 million tonnes. airports resulting from booming growth million pounds (14,500 tonnes ) annually Despite forecasts of a fall in cargo traf- at major Asian airports and the prospect since 2008. We did see some higher vol- ÀFGXHWRWKHUHORFDWLRQRISURGXFWLRQ of further increases in slots at Haneda umes between 2005 and 2007, (above bases offshore, shifts to sea transport and Airport, Narita Airport has rolled out a 40 million pounds), which was during other changes in the logistics framework number of strategies aimed at further our economic boom and also when combined with a second increase in improvements and expansions in the DHL was in the market. Currently our all- international slot capacity at Haneda international network that serves as its cargo operators are UPS and FedEx. Airport which also serves Greater Tokyo key advantage as well as increasing and in conjunction with Narita, international consolidating existing routes. RECENT INITIATIVES cargo in 2014 actually increased for the Narita increased its slot capacity from second successive year by 5.3% to 2.043 270,000 to 300,000 a year at the end We are a small cargo market, with little million tonnes propelled by increases of March 2015 and is also increasing its manufacturing, and in relative proximity in exports and cargo bound for third hourly capacity. to Miami. Current infrastructure is ad- country destinations (transit cargo). This equate to handle the volumes, however In April 2015, it unveiled the ‘Narita LVWKHÀUVWWLPHLQIRXU\HDUVWKDWFDUJR we have tweaked some of the rates on has exceeded the 2 million tonne mark Promotional Incentives’, strategies our hardstand ramp area to entice a since 2010. designed to reduce landing fees for new possible new entrants into the mix. routes, and is stepping up its efforts to With the support of the continu- bring in new airline services. Applying We will continue to maintain appropri- ing depreciation of the yen and the these incentives with the ‘Additional Ton- ate infrastructure and work with our strong climate in the US, exports saw nage Incentives’ introduced in April 2013 third party facility tenant to provide the WKHLUÀUVWLQFUHDVHLQIRXU\HDUVDWWR (50% discount on increases in tonnage necessary infrastructure for our volumes. 596,000 tonnes. Plastics and automobile over the previous term) can provide up We will also continue to market avail- components to the US, where demand to a year free of landing charges. able airport lands and infrastructure for for air transport has risen sharply since future cargo operations. July 2014, have been particularly strong. In addition to these measures, Narita is also engaging in promotion activities We are in a unique position by having Imports have continued their decline for an inventory of available aviation and the fourth straight year with a drop of aimed at airlines and forwarders as well as activities to attract companies with non-aviation land for future develop- 2.7% to 763,000 tonnes due to depressed ment of appropriate facilities. demand resulting from the increase in ties to the area around the airport and consumption tax (5% to 8%) in April 2014 promote exports of agricultural products. and the depreciating yen as well as the OUTLOOK VWLÁLQJLQÁXHQFHRIWKHVHFRQGLQFUHDVH OUTLOOK ,VHHRXUFDUJRPDUNHWDVUHODWLYHO\ÁDWLQ in international slots at Haneda Airport. Backed by the depreciated yen, further 2016, though with the increasing popula- Transit cargo is an area where the air- increases in exports are expected tion base, we might see increased small lines have stepped up their involvement while transit cargo is also predicted to package shipments as well as increased through strategic use of Narita’s major strengthen, particularly between Asia capacity for belly freight. advantage in the form of its balanced and North America. The continuing international network extending to 100 slump in imports since the depreciation “Although slightly cities around the world. This sector has of the yen and the rise in consumption seen a dramatic increase of 15.3% to tax in April 2014 may see a recovery 684,000 tonnes, the third successive year in domestic consumption arising from improved from August, of increases and a new record. Transit changes to the employment environ- cargo comprises 33.5% of all cargo and ment by the government’s economic the global trend is fragile, that ratio climbs each year. policies. According to Customs statistics of and the improvement is 2014, key items such as machinery and transportation equipment accounted for narrowly based” around half of the value-based imports Tony Tyler, IATA

32 CARGO AIRPORTS AIRLINE SERVICES :LQWHU Origin Content FRA CARGO

Remarks WE HANDLE Fraport Cargo Services WITH www.fraport-cargo.de CARE

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AIRPORT FOCUS: Amsterdam Schiphol (AMS: 16th in 2014 with 1,633,195 tonnes; +6.7%)

VOLUME DEVELOPMENT WIDER LOGISTICS INITIATIVES which is China’s major airfreight gateway %\WKHHQGRI46FKLSKROKDGPDGH Schiphol is unique among major to Europe. Major manufacturers will XSPRVWRILWVHDUOLHUGHÀFLWFRPSDUHG European airports in having plentiful inevitably continue to seek the path of to 2014, ending 1.4% down on the same land available for development im- least cost in their supply chains, which period. As China is our major market, mediately adjacent to the airport. In the means modal shift. Security will continue the current cooling of their economy – next 18 months, the following sites will be to tighten, as we encounter further terror- although still showing better growth than developed: BPAO (43,110 sqm, 8km from LVWDWWHPSWVDQGWKDWZLOOQRWEHQHÀWWKH most other markets – has adversely im- airport cargo); PolanenPark (25,500sqm, speed of airfreight. pacted our total volumes and counter- 12km from airport cargo); Schiphol But, on the positive side, Schiphol DFWHGJURZWKHOVHZKHUH5XVVLDQWUDIÀFLV Logistics Park (47,660sqm, 1km from is continuing to perform strongly in its also weaker as a result of sanctions and airport cargo); President (16,694sqm, community’s take-up of e-AWB, which the weak Rouble - which has impacted 3km from airport cargo); and GreenPark contributes to streamlining of cargo their previously major expenditure on cut (132,522sqm, 3km from airport cargo). processing here and globally. Continuing ÁRZHUV7KLVZDVYHU\QRWLFHDEOHDURXQG We encourage the development of speed and reliability issues with ocean 9DOHQWLQH·V'D\ZKHQIDOOVLQÁRZHU PL[HGXVH]RQHVZKHUHRIÀFHVOLJKW freight are likely to favour airfreight and exports to Russia negated increases manufacturing and logistics facilities are at least partially counteract modal shift. achieved in other markets. co-located. This makes good business Our collaboration model gets stronger all South America and the Middle East sense, and is environmentally friendly in the time, and this continues to achieve are buoyant, and the launch of the reducing transportation activity. PHDVXUDEOHEHQHÀWVIRUPDQXIDFWXUHUV iPhone 6 is providing a welcome boost. using Schiphol as a gateway. And we believe that global e-Commerce will COLLABORATIVE CARGO COMMUNITY FUHDWHQHZWUDIÀFERWKLQERXQGDQG IMPROVEMENT INITIATIVES INITIATIVES outbound, and that the airfreight industry Development work at Schiphol is con- ‘MilkRun’ is a perfect example of a ZLOOEHQHÀWDWOHDVWDVPXFKDVLQWHJUD stant and ongoing. Our focus remains on Schiphol community solution in which dif- tors from the extraordinary growth which providing neutral facilitation for innova- ferent parties – often competitive – have is being predicted for online retailing. tion, designed to achieve streamlined IRXQGV\QHUJLHVDQGSRWHQWLDOEHQHÀWVIRU processing of cargo and so improve the the airport as a whole. Cargonaut (our customer experience. Development of community information platform opera- OTHER COMMENTS the Joint Inspection Centre is progressing, tor) recently hosted a meeting to explore ,QRUGHUWRJDLQHIÀFLHQFLHVWUDQVSDU and this will open next year – bringing all how the community views Schiphol’s ency and reliability, the airfreight regulatory inspections together under future role in the global industry, and industry needs to strongly improve in one roof, and leveraging latest technol- consider how it can maintain its lead. digitalization. ogy to reduce Customs on-site inspec- The meeting gave Schiphol Cargo, Airfreight is not achieving the rates tions and minimise potential delays. Cargonaut, and Air Cargo Netherlands and margins globally that it requires for Our current project is ‘MilkRun’, which a strong mandate to continue with sustainable development. While this is replaces individual forwarder deliveries innovation, and to act as facilitators. largely the effect of over-capacity, the to the handling facilities with centralised Community solutions have always been market must also learn to accept that truck operations, to reduce airport truck a Schiphol characteristic, and will remain quality and low rates are not compat- so. If community solutions have syner- WUDIÀFDQGTXHXHVDWWHUPLQDOV7KH ible. If the industry must invest in new current pilot involving one handler, one JHWLFEHQHÀWVZHZLOO²LQWKHEURDGHU technology and processes, it must also trucker and ten freight agents is already community – strive for them. be allowed to recoup that investment. showing very positive results, and is likely to be adopted on a wider basis in due OUTLOOK FOR 2016 course. With a number of dampening factors Jonas van Our community continues to invest, at play, which are likely to continue for Stekelenburg, particularly in pharma handling. Yusen some time, we are taking a cautious Director has recently joined several other LSPs in view of 2016, with a projection of very Cargo, opening GDP facilities, and will make modest growth, of under 2%. Amsterdam Schiphol the base for its pan-European Airport pharma distribution. Schiphol In addition to Milkrun and Elink , we CURRENT INDUSTRY ISSUES will be looking at improvements in There are negatives and positives. The perishables handling processes and cooling of the world’s largest manufac- facilities, and continuously making steps turing economy will continue to impact in digitalization. airfreight, especially here at Schiphol,

WKH(XUR]RQH%XWWKHODUJHVWDLUFDUJRUH data suggests that improvements in some thanks to new tech product launches, par- JLRQ $VLD3DFLÀFZDV RQO\ MXVW LQ SRVLWLYH regions could counter further declines in air WLFXODUO\IURP$SSOH+RZHYHUWKHVXUJHZDV WHUULWRU\KHOGGRZQE\ZHDNUHJLRQDOWUDGHµ FDUJR GHPDQG %XW WKLV LV QDUURZO\ EDVHG XQGHUVWRRGWREHFDXVHGE\VKRUWWHUPVHD &RPPHQWLQJ RQ WKH RXWORRN ,$7$ VDLG DQGWKHGHPDQGEDFNGURSIRUDLUFDUJRUH VRQDOIDFWRUVDQGZDVH[SHFWHGWRGLHGRZQ ´6RPHRIWKHFRQGLWLRQVWKDWOHGWRWKHGH PDLQVIUDJLOHµ E\ HDUO\ 'HFHPEHU $QG LW ZDV DOVR XQFOHDU FOLQHLQZRUOGWUDGHWKLV\HDU²DFRPELQDWLRQ As this issue of CAAS was going to press, whether the spike in demand represented RI ZHDNHU WKDQ H[SHFWHG JOREDO HFRQRPLF airlines and freight forwarders were report- VLJQLÀFDQW\HDURQ\HDUJURZWKZLWKVKRUWDJHV growth, particularly in emerging markets, as LQJ D VXUJH LQ GHPDQG GXULQJ 2FWREHU DQG RIFDSDFLW\SDUWO\UHÁHFWLQJWHPSRUDU\UHVWULF well as shifts toward the domestic market 1RYHPEHU IURP $VLD·V PDMRU FDUJR DLUSRUWV WLRQVSODFHGRQFKDUWHUÁLJKWVRSHUDWLQJRXWRI LQ &KLQD ² DUH SHUVLVWLQJ 7KH 6HSWHPEHU WR NH\ PDUNHWV VXFK DV (XURSH DQG WKH 86 &KLQD·VPRVWFRQJHVWHGDLUSRUWVQQQ

34 CARGO AIRPORTS AIRLINE SERVICES :LQWHU Discover more in our LUG film

I am the ACCURACY in your cargo.

Sonja Weide-Moukas, Accounting

We are very happy that Sonja Weide-Moukas brings a piece of her leisure time to work every day. For example her eye for details and her sense for precision. She cultivates both at home with her fondness for needlework. During work she exchanges patterns, needle and yarn with price charts, tax rates and calculator. However, whatever tool Sonja takes in her hand, the outcome at the end convinces not only at first glance, but with every thorough look. And that’s the matter with every single digit before and after the decimal point. Challenge Sonja Weide-Moukas. Dial: +49 (0) 69 698 19 - 500

We are closer Looking back... $&+

2015 CONFERENCE

&21)(5(1&(5(9,(: PHPEHUV FDUJR KDQGOHUV DQG DLU OLQHV XQGHU ,$7$·V &DUJR 6HUYLFHV &RQIHU HQFH &6& LQRUGHUWRLQFUHDVHWKHVSHHG in which standards and industry positions DUHGHYHORSHGHQGRUVHGDQGLPSOHPHQWHG VHH¶0HDVXULQJSURJUHVV&2$*·VFRPPLW PHQWV·SDQHO $IWHUDVHVVLRQEUHDNDLUOLQHVGLVFXVVHG ...thinking ahead KRZ WKHLU KDQGOLQJ QHHGV KDYH FKDQJHG SRVWFULVLV 6HUGDU 'HPLU 93 FDUJR RS HUDWLRQV DW 7XUNLVK $LUOLQHV DQG 5REHUW KHWKDQQXDO$LU&DUJR+DQ Day one )RUGUHH KHDG RI FDUJR KDQGOLQJ DW (WLKDG dling Conference took place Conference chairman John Batten and &DUJR GHVFULEHG WKHLU FRPSDQLHV· UHVSHF RXWVLGH RI (XURSH IRU WKH chief moderator Chris Notter kicked off WLYH SULRULWLHV WKH RSHUDWLRQDO FKDOOHQJHV T ÀUVW WLPH DW WKH 6KDQJUL/D proceedings with a summary of events over RI HIUHLJKWH$:% DQG WHFKQLTXHV IRU FUL hotel in Bangkok in Septem- the last year. Some candid thoughts from VLV DYHUVLRQ LQ WKH FXUUHQW FOLPDWH 'HPLU EHU KRVWHG E\ :RUOGZLGH )OLJKW 6HUYLFHV John Batten suggested that not enough spoke of how a carrier can outwardly man- and Bangkok Flight Services. was being done to advance the industry DJHLWVSURÀOHLQRUGHUWRPLWLJDWHQHJDWLYLW\ 7KUHH GD\V RI DFWLYLWLHV LQFOXGLQJ ZRUN LQWR EHFRPLQJ PRUH HIÀFLHQW EXW WKDW D while Fordree discussed how working with LQJ JURXSV RQHWRRQH PHHWLQJV IRFXVHG collective push from all parties in the sup- D QHWZRUN RI FHUWLÀHGSUHIHUUHG KDQGOHUV SUHVHQWDWLRQV DQG SDQHO GLVFXVVLRQV SO\FKDLQLQFOXGLQJJRYHUQLQJERGLHVDQG FRXOG EXLOG FRQVLVWHQW TXDOLW\ DQG VHUYLFH brought attendees up to date with the lat- LQLWLDWLYHVFRXOGUHVFXHPDUNHWVKDUHORVW )RUGUHH DOVR GLVFXVVHG KRZ 6/$ FRPSOL HVWGHYHORSPHQWVDQGEHVWSUDFWLFHWKDQNV to other transport modes. DQFH &. FRPSOLDQFH DQG WKH KDQGOHU·V to input and insights from leading air cargo 8UV :LHVHQGDQJHU SUHVLGHQW RI 8/' FRPPLWPHQWWRVDIHW\VHFXULW\DQGWUDLQLQJ executives. &DUH GLVFXVVHG WKH LPSRUWDQFH RI LPSOH combines to build a strong platform for ship- menting best practices when managing pers and forwarders. Pre-conference day 8/'VFODLPLQJWKHVHFWRUFDQVDYHPLOOLRQV 3DWULN 7VFKLUFK PDQDJLQJ GLUHFWRU RI 7KHVKRZUDQDORQJVLGHWKH8/'&DUHFRQ if the whole air cargo handling chain took /8* DLUFDUJR KDQGOLQJ RXWOLQHG KRZ WKH IHUHQFH DQG VWDUWHG RII ZLWK ÀYH FRQFXU PRUHUHVSRQVLELOLW\WRPDNHVXUH8/'VDUH KDQGOHU·V QHHGV DQG SRVLWLRQ KDV EHHQ UHQWZRUNLQJJURXSVGLVFXVVLQJNH\LVVXHV maintained and used correctly. FKDQJLQJDQGKRZWKHFRQWUDFWXDOUHODWLRQ UHODWLQJ WR UHVSHFWLYHO\ 8/'V PHVVDJLQJ 'DYLG $PEULGJH FDUJR JHQHUDO PDQ VKLSVEHWZHHQVKLSSHUIRUZDUGHUDQGKDQ ERWWOHQHFNV H$:% LPSOHPHQWDWLRQ &(,9 DJHUDW%DQJNRN)OLJKW6HUYLFHVDQG$QGUH dler should be more accessible in order to 3KDUPD DQG LQGXVWU\ WUDLQLQJ 7KRVH ZKR 0DMHUHV ,$7$·V PDQDJHU RI FDUJR PDLO improve the dynamics of the supply chain. DWWHQGHGWKHVHVVLRQVSUDLVHGWKHGHEDWHV RSHUDWLRQV DQG VWDQGDUGV KLJKOLJKWHG WKH +HDOVRKLJKOLJKWHGKRZ6/$VEHWZHHQWKH which culminated in thought-provoking ODWHVWZRUNDQGGHFLVLRQVIURP,$7$·V&DUJR airline and handling agent do not match ideas that were noted by each of the group 2SHUDWLRQV $GYLVRU\ *URXS &2$* LQFOXG the agreements between the airline and OHDGHUV WR EH FROODWHG DQG GLVWULEXWHG LQJDWWKHSUHYLRXVGD\·VPHHWLQJ7KH\UH IRUZDUGHU DQG DV VXFK IRUZDUGHUV PXVW among delegates in order to help strive to- YHDOHGWKDW&2$*LVWREHUHQDPHGWKH,$7$ take more responsibility for certain aspects wards achieving their collective goals. &DUJR+DQGOLQJ&RXQFLO ,&+& DQGLQFOXGH of the shipping process.

36 CARGO AIRPORTS AIRLINE SERVICES :LQWHU $&+&21)(5(1&(5(9,(:

The Technology Challenge MEASURING PROGRESS: COAG’S COMMITMENTS ,Q ¶7KH 7HFKQRORJ\ &KDOOHQJH· NH\ FRP- panies facilitating the implementation of IATA’S CARGO OPERATIONS ADVISORY GROUP OUTLINES ITS RECENT ACTIVITIES AND TARGETS FOR THE NEXT YEAR HIUHLJKW DQG H$:% ZHUH SXW XQGHU WKH microscope and attempted to look into the IATA’s Cargo Operations Advisory Group d. IATA would then prepare a (COAG) took part in the Air Cargo Han- preliminary report based on a short future of technology within air cargo handling (ACH) conference in Bangkok from survey to understand the full extent GOLQJ 2OLYHU 1HHUIHOG KHDG RI FRPPHUFLDO 1 to 3 September 2015. We have been of value the Facility Capabilities asked by the chairman and the chief Matrix will provide. Were shortfalls RSHUDWLRQV$VLD3DFLÀFDW&+$03&DUJRV\V- moderator of the conference to provide DQGJDSVHDVLO\LGHQWLÀHG"'LGLW WHPVVSRNHRIWKHFXUUHQWLQLWLDWLYHVKHLV a post-conference report regarding facilitate a conversation between activities and tasks agreed between the carriers and ground handlers on currently “championing” in order to assist COAG and the ACH Conference to be TXDOLW\DQGSHUIRUPDQFH":LOOWKH GDWDTXDOLW\LQWHJULW\DQGKDUPRQL]DWLRQ² undertaken by the next ACH Confer- WUDQVSDUHQF\SURYLGHGEHEHQHÀ- ence in September 2016. FLDOIRUDOOSDUWLHV" DQG KRZ DSSOLFDWLRQV OLNH &DUJR8SGDWH Marking the end of the conference, e. A preliminary update will be /RJLWXGHDQGIXUWKHUIDFLOLWDWLRQRIH$:% Chris Notter, chief moderator, showed presented at the next IATA WCS in DIHZÀQDOVOLGHVWKDWKHVHHVDVDOLVWRI Berlin (15-17 March 2016) during LQLWLDWLYHV VKRXOG VHH WKH HIÀFLHQF\ RI DLU industry-critical items that the COAG the Cargo Operations Track, and a FDUJR KDQGOLQJ LPSURYH -RKQ 'H%HQHG- has committed to work on until the full report of the validation process next ACH Conference 2016, to support will be presented at the next ACH HWWHPDQDJLQJGLUHFWRURI:RUOGZLGH,QIRU- the cargo handling community in its conference, in 2016. PDWLRQ1HWZRUNDOVRSUHVHQWHGKLVLQWHU- activities (see Conference chairman’s concluding slides). pretation of how we are moving towards a During the conference, the COAG SLAS FRQQHFWHGSDSHUOHVVV\VWHP-RKQVSRNH gave the audience a roundup of its Over the last few years, COAG members of how his work in automating the weight achievements and ongoing activities, have noticed very large variations in the next steps moving forward, as well as the type and length of SLAs - which in slip process has shown clear results in agreed objectives. some cases exceeded 40 pages. These - The work within the COAG (and its YDULDWLRQVKDYHUHVXOWHGLQLQHIÀFLHQW LQFUHDVLQJ H$:% LPSOHPHQWDWLRQ HVSH application of the SLAs and in many GLVFXVVLRQVDW$&+ IRFXVHGRQÀYH FLDOO\ZLWKLQWKH7KDLPDUNHW main areas: The Facility Capabilities cases non-measurement, defeating the purpose. $QGZUDSSLQJXSGD\RQH&DUVWHQ+HUQLJ Matrix; SLAs; IATA Safety Audit for Ground Operations; Dwell times in the air cargo The COAG’s ‘Cargo Recommended PDQDJLQJGLUHFWRURI-HWWDLQHURXWOLQHGKRZ supply chain; And the proper and ef- 6/$·KDVQRZEHHQÀQDOLVHGDQGDJUHHG a culmination of both hardware and soft- fective management, use, and control by the Aviation Ground Services Agree- of ULDs. ment (AGSA) group, which owns the ZDUHLVWKHNH\WRDZHOOPDQDJHG8/'DQG AHM 803 (ATA Airport Handling Manual) . JURXQGKDQGOLQJVHWXS²DQGWKHLQWURGXF- tion of a mobile application from Jettainer THE FACILITY CAPABILITIES MATRIX The changes would help to remove The Facility Capabilities Matrix (FCM) complexity and improve the customer also helps raise the levels of collaboration lists the capabilities that a cargo facil- experience by providing transparency among those within the air cargo handling ity could be measured against, the and consistency in the air cargo supply purpose of which is to enhance cargo- chain. The customer referred to in the supply chain! handling capabilities to a consistently term ‘customer experience’ is the freight high standard while identifying possible forwarder/shipper, rather than the cus- non-compliance in critical areas. tomer airline referred to in the SGHA. Day two This has now come to a mature stage a. At the next COAG meeting, the ,Q WKH DSWO\ QDPHG ¶+DUG 7DON 4XHVWLRQ and is published on the IATA Cargo members will pilot COAG’s ‘Cargo Operations webpage: http://www.iata. Recommended SLA’. 7LPHZLWK,QGXVWU\/HDGHUV·VHVVLRQ+HQULN org/whatwedo/cargo/Pages/cargo- operations.aspx. b. Again the COAG will be looking $PEDN 693 IRU FDUJR RSHUDWLRQV ZRUOG- for volunteers ready to launch the ZLGH DW (PLUDWHV 6N\&DUJR VSRNH RI KRZ D7KHJRDOLQWKHÀUVWSKDVHZLOOEH template and introduce a mutual to allow cargo handlers to down- and joint exercise. WKH ORZHVW SULFH LVQ·W QHFHVVDULO\ WKH ORZ- load (free of charge) the checklist and perform a self-assessment to (Those parties interested can contact est cost when deciding on who to choose perform their own gap analysis. IATA using the following e-mail address: [email protected]) WR KDQGOH FDUJR ZLWK YDOXDEOH LQSXW IURP b. The second phase will be the c. An update of the challenges and 6FKLSKRO·V -RQDV YDQ 6WHNHOHQEXUJ ,$7$·V development of an independent validation process, which is under EHQHÀWVZLOOEHSURYLGHGDWWKHQH[W *O\Q +XJKHV +DFWO·V 7DQ &KHH +RQJ DQG investigation at present time with IATA WCS in Berlin (15-17 March 2016) during the Cargo Operations &DUJROX[·V0LFKHO)LRUDQLGHEDWLQJLQQRYD- the IATA ISAGO team, in order to verify the capabilities assessed in Track. tive ideas and industry best practice. the facility. *LRYDQQL'RXYHQOHFWXUHUDQGUHVHDUFK c. At the next COAG meeting, IATA IATA SAFETY AUDIT FOR GROUND - will seek to partner carriers to GHAs IHOORZ DW WKH ,QKROODQG 8QLYHUVLW\ RI $S and to enlarge the pilot commu- OPERATIONS (ISAGO) SOLHG6FLHQFHVJDYHDFRPSHOOLQJWDONRQ nity, calling for (neutral) volunteers The COAG is also looking at the imple- to be included. The objective will mentation of the IATA Safety Audit for KRZGLJLWDOLVDWLRQDW$PVWHUGDP6FKLSKRO be that GHA facilities would be Ground Operations (ISAGO), which aims KDV VLJQLÀFDQWO\ LQFUHDVHG HIÀFLHQF\ assessed by a partnered carrier. to improve safety by drastically reducing DQG HIIHFWLYHQHVV UHVXOWLQJ LQ IDVWHU

:LQWHU CARGO AIRPORTS AIRLINE SERVICES 37 $&+&21)(5(1&(5(9,(:

ground accidents and injuries and is (TIACA) and the Global Shippers’ Conference modelled on the successful IATA Opera- Forum (GSF). This industry analysis will chairman tional Safety Audit (IOSA) programme. help to identify the segments in the John Batten a. The COAG is investigating the pos- supply chain where improvements sibility to extend the ISAGO audit can be made and will be shared to the core Cargo Operations and at the next IATA WCS in Berlin (15-17 more. This would allow for standardi- March 2016) during the Cargo zation and not overly burden the Operations Track. industry in creating a new audit. b. Today, ISAGO uses the scope of the IATA Ground Operation Manual MANAGEMENT, USE, (IGOM), and contains 21 topics AND CONTROL OF ULDS related to cargo safety working 7KHÀQDOWRSLFFRYHUHGE\WKH&2$* WKURXJKSXW WLPHV VKRUWHU ZDLWLQJ WLPHV instructions out of 85 core cargo was that of the importance of proper handling topics currently found and effective management, use, and and better planning. in the airlines cargo operations control of ULDs. Over US$300m is spent $IWHUDSUHVHQWDWLRQRQZKDWWKHHFRP- manuals. each year on repairing damaged c. Therefore the COAG has started ULDs, which is a result of poor industry merce industry has to offer in terms of an to draft a standardized IATA Cargo awareness and training. ULDs are also LQWHUIDFHZLWKWKHFOLHQW6WDQ:UDLJKWVHQ- Handling Manual (CHM), upon the most common cause of damage which an enhanced ISAGO could to aircraft on the ground, according LRU H[HFXWLYH GLUHFWRU DW 6WUDWHJLF $YLDWLRQ be based. to IATA’s Ground Damage Database 6ROXWLRQV,QWHUQDWLRQDOZDVMRLQHGRQVWDJH There will be a need to focus on (GDDB). COAG is advocating the wider the development of competency- adoption of the ULD Regulations as well E\ FRQIHUHQFH FKDLUPDQ -RKQ %DWWHQ /XF based criteria of the auditors and as looking at measures designed to /DUULHX6DQV LQWHUQDWLRQDO WUDQVSRUW PDQ- investigate training, licensing, or raise the awareness of ULDs to opera- FHUWLÀFDWLRQRIWKRVHLQGHSHQGHQW tional staff. DJHU DW /D 3RVWH DQG 3HWHU :HLU &22 IRU validators. GQDWD$XVWUDOLD/DUULHX6DQVJDYHKLVSHU- d. A review would then be presented spective of the mail sector and how it ben- at the next IATA WCS in Berlin (15-17 TARGETS FOR THE NEXT YEAR March 2016) during the Cargo On the last slide, the chief moderator HÀWVEXVLQHVVWREHLQGLUHFWFRQWDFWZLWKLWV Operations Track. asked the COAG and IATA to support three solid and achievable initiatives FXVWRPHUVZKLOHRWKHUVVWUHVVHGWKHQHHG agreed upon by the industry. These IRU*+$VWRFKDQJHDQGGLYHUVLI\DVZHOODV points would be communicated to the DWELL TIMES IN THE &2$*IRUYHULÀFDWLRQHQGRUVHPHQWDQG WKHLPSRUWDQFHSXWRQ&. AIR CARGO SUPPLY CHAIN clear milestones - the three initiatives )URPWKHÀQDOVSHDNHUVGHOHJDWHVKHDUG The COAG made a presentation to the hereunder: ACH conference dealing with dwell two differing perspectives from two impor- times in the air cargo supply chain. 1) Implementation of the Facility WDQWFDUJRKXEVLQ(XURSH1LFN3ODWWVIURP a. For some time now, it has become Capabilities Matrix (FCM), self-as- Heathrow outlined his plans in the new role increasing obvious to all stakehold- sessment, and independent audit ers that the transport time from the YHULÀFDWLRQ RIKHDGRIFDUJR VHHDUWLFOHRQSDJHV;;; shipper to the consignee has to be This includes investigation of how and asked the audience to give their feed- reduced. we integrate into ISAGO, audit of The COAG decided to investigate competencies, etc. back of their experiences with Heathrow. the issue and started to perform various measurements to assess those 2) ULD awareness $OVR QHZO\ DSSRLQWHG 'LUN 6FKXVG]LDUD A campaign to increase the industry areas where processes could be VHQLRU93IRUFDUJRGHYHORSPHQWDQGPDQ- improved and time saved: on the awareness of ULDs, the impact on export side between acceptance ÁLJKWVDIHW\FRVWVHWF DJHPHQW DW )UDSRUW GHVFULEHG KRZ )UDQN- (RCS) and departure (ATD); on the 2SWLPL]DWLRQDQGHIÀFLHQF\²OHDG- IXUW$LUSRUW·V¶6SHHG*DWH·DOORZHGIDVWWUDQ- import side between arrival (ATA) ing the industry with green lanes, and warehouse check-in (RCF) and single process, and transparency of VLW IURP ODQGVLGH WR DLUVLGH DQG VWUHVVHG ÀQDOO\WKHGHOLYHU\ '/9 activity through dwell time publishing the importance of collaboration in order to DQGVLPSOLÀHG6/$LPSOHPHQWDWLRQ b. The airline members of the COAG accelerate the overall process. will now provide their associated This includes developing a set of core measurements to determine the cargo operations content into a single 0DUNLQJWKHHQGRISURFHHGLQJVFRQIHU- OHQJWKRIWKHÁLJKWVHVSHFLDOO\LQ set of published and agreed standards ence chairman John Batten then gave his transit. to be adopted by the industry (e.g. the c. The COAG will seek further volun- &DUJR+DQGOLQJ0DQXDO²&+0 Q review of each key theme raised in the con- teers to perform assessments and IHUHQFH&KULV1RWWHUFKLHIPRGHUDWRUWKHQ those parties interested can contact IATA using the following e-mail ad- outlined what he saw as the list of commit- dress: [email protected]. ments that the industry needed to be held d. Those measurements will then DFFRXQWDEOHWR VHH¶%\QH[W\HDU«·VOLGHV be shared with the Global Air Cargo Advisory Group (GACAG) 7KHDLPLVWKDWWKHDLUFDUJRKDQGOLQJFKDLQ composed of the International DORQJ ZLWK WKH YDULRXV LQGXVWU\ LQLWLDWLYHV Federation of Freight Forwarders As- sociations (FIATA), the International ANDRE MAJERES will be examined in time for the event next Air Transport Association (IATA), The Manager, Cargo & Mail Operations year to see how much of what has been International Air Cargo Association & Standards, IATA promised is actually achieved. QQQ

38 CARGO AIRPORTS AIRLINE SERVICES :LQWHU $&+&21)(5(1&(5(9,(:

5HÁHFWLRQVIURPWKHFRQIHUHQFH·VFKLHIPRGHUDWRU Chris Notter, vice president of operations, Saudi Airlines Cargo Q. What were your main objectives 4:KDWZHUHWKHNH\PHVVDJHVWKDW and how do you think the end result ZHUHRQ\RXUVKRUWOLVW" VDWLVÀHG\RXULQLWLDOWDUJHWV" $7KHRSHQLQJPHVVDJHDQGIRFXVZDV $7KHGLIÀFXOWWDVNDWDQ\FRQIHUHQFH RQ¶)($5·²ZK\GRZHGRZKDWZHGR":K\ is the generation of active and challeng- is our business sometimes not seen to be ing involvement from the audience dur- DV G\QDPLF DV PDQ\ RI XV IHHO WKDW LW LV" LQJ WKH VWUXFWXUHG VHVVLRQV 7KLV \HDU :KDW FDQ ZH GR WR WDNH WKH )($5 ZKLFK ZDVYHU\JRRGDQGDIWHUDOLWWOHZDUPLQJ FRQÀQHV XV WR RXU FRPIRUW ]RQH ZLWKRXW up there were some very thought-pro- Networking and making conferences work FKDOOHQJLQJ RU HPEUDFLQJ FKDQJH RXW RI YRNLQJ FRPPHQWV DQG LQWHUDFWLRQV 7KH IRU HDFK SDUWLFLSDQW DQG RUJDQL]DWLRQ LV RXUGDLO\UHVSRQVHVUHDFWLRQVDQGUHVROYH" RSSRUWXQLW\WRSDUWLFLSDWHIURPWKHÁRRU also of high value. 7KH )($5 FDPH IURP DOO DUHDV RI WKH is key to the success of the conference. Whilst the industry is well populated with SURFHVV ² ZKHWKHU LW ZDV EHFDXVH RI FRP- ,ZDVDOVRYHU\LPSUHVVHGZLWKPDQ\RI FRQIHUHQFHV DQG PHHWLQJV LW LV DOZD\V SHWLWLRQ FKDQJH LQÁXHQFHV VHUYLFH OHYHOV WKH VSHDNHUV ² PDQ\ RI ZKRP JDYH D good if we share a smile or a few laughs SUHVVXUHV H[SHFWDWLRQ DQG WKH REYLRXV genuine and passionate delivery of their whilst addressing the detail with the impor- SDUWQHUVKLSRIVDIHW\DQGVHFXULW\7KH)($5 subject matter. tance it deserves. also was aimed at us as the industry team $QRWKHUWDUJHWLVWRHQVXUHWKDWDFOHDU 7KHODVWWKLQJWKDWVKRXOGDOZD\VEHLQ LWVHOI:K\GRZHQRWVD\¶12·RUDVN¶:+<"·,I message or storyline runs through the place is that we have covered some de- something does not make sense or improve FRQIHUHQFH DQG LI WKH NH\ VXEMHFWV DQG velopment and improvement and set our- HIÀFLHQF\RUSURGXFWLYLW\ZK\GRZHDOORZLWWR speakers are also endorsing similar mes- selves some clear objectives for the time DGGPRUHFRPSOH[LW\WRRXUSURFHVV" sages then there is life in the sessions. in between one conference and another. What is wrong with challenging and

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SACO Industrieweg 2 P.O. Box 47 T +31 (0)492 430 059 [email protected] a division of SMA BV AIRPORT EQUIPMENT NL-5731 HR Mierlo NL-5730 AA Mierlo F +31 (0)492 432 713 www.saco.aero

:LQWHU CARGO AIRPORTS AIRLINE SERVICES 39 $&+&21)(5(1&(5(9,(:

suggesting that standard practices are what the real commitment and capability of all 4:KDWZHUHWKHKLJKOLJKWVRIWKH DOORZUHSHDWDELOLW\DQGFRQVLVWHQF\DVZHOO involved in accepting the challenges will de- FRQIHUHQFHIRU\RX" DVFRQÀGHQFHDPRQJHPSOR\HHVZKRKDYH WHUPLQHWKHVXFFHVVRUQRW'RZHEDUNEXW $ 6HHLQJ VR PDQ\ QHZ IDFHV ² IURP VRPXFKWRUHPHPEHUDQGUHIHUWR"$XWKRUL QRWELWH"$UHZH¶\HVSHRSOH·LISUHVVXUHGDQG Hounslow to Hawaii! Seeing many younger WLHV DQG VWDNHKROGHUV DV ZLWK FXVWRPHUV QRW¶QRSHRSOH·LIQHHGHG"'RZHDVN¶ZK\· colleagues who wanted to participate and GHPDQGTXDOLW\FRQVLVWHQF\DQGDUHOLDEOH instead of accepting everything that com- enjoyed the opportunity to ask and be heard. H[SHULHQFH 7R GHOLYHU WKHVH H[SHFWDWLRQV SOLFDWHV RXU ZRUNLQJ SUDFWLFH" 'R ZH ZRUN Seeing so many carriers having a positive re- RXUHQHUJ\KDVWREHEXLOWDURXQG¶&RPSOL DURXQGLQVWHDGRIZRUNLQJDVGHVFULEHG"'R VSRQVHWRWKHUHTXHVW¶:LOOWKH\EULQJVRPH DQFHDQG&RPSHWHQFH· ZHDJUHHWKDWZHFDQGRRUWKDWZHZDQWWR« FXVWRPHUV WR $&+ QH[W \HDU DQG ZLWK WKHLU $JDLQ WR GHOLYHU WKHVH EDVLF SULQFLSOHV EXWWKHQRIWHQIDLOWRGHOLYHU",WLVDOZD\VJRRG UHVSHFWLYHFXVWRPHUVDVZHOO"·,IWKHLQGXVWU\ we have to ensure transparency of what WRUHÁHFWDQGHYDOXDWH²OHWXVVHHZKHUHZH WHDP ZDQWV WR FKDQJH ZH ZLOO KDYH WR LQ ZH GR ZKHQ E\ ZKRP DQG ZK\ ,I ZH DO DUH DQG ZKDW ZH KDYH DFKLHYHG ZKHQ $&+ FOXGHDOOSRVLWLRQVZLWKLQRXUORJLVWLFVFKDLQ« ways focus on complying with directives PHHWVQH[W\HDULQ'XEDL WKHQZHZLOOEHDEOHWR/($'&+$1*( Q and supporting key initiatives by ensuring a FRPSHWHQWDQGPRWLYDWHGWHDP UDWKHUWKDQ accepting every change or workaround or By next year… VKRUWFXW ZLWKWKHFRQÀGHQFHRIVD\LQJ¶QR· CONFERENCE ISAGO-BASED AUDIT ZKHUHQHFHVVDU\WKHQZHZLOOEHFRPHPRUH CHAIRMAN’S 7RDJUHHRQDIRUPDODQGFUHGLEOH ISAGO-based audit supported by UHOLDEOHDQGFRPSHWLWLYH,WZLOOEHVLPSOLFLW\ CONCLUDING 2015 CONFERENCE partner carriers RIZRUNLQJSUDFWLFHVDQGQRWFRPSOH[¶MXVW SLIDES FDUULHUVWRDJUHHRQWKHORFDWLRQV LQFDVH·UHTXLUHPHQWVWKDWZLOODOORZORJLFWR and the structure prevail rather than the chains of legacy. 6DPHFDUULHUVWRDJUHHRQPLQLPXP criteria for the auditors 7KH FRPPXQLW\ LWVHOI QHHGV WR EH YHU\ ,$7$WRYHULI\FRPSHWHQFHRIWKH careful how we approach this coming year. auditors and ‘license’ the individuals 7R GHIHQG RU UHDFW LV IDU WRR IDPLOLDU ZH 5HYLHZRIÀQGLQJV DQGWKHUHZLOOEH during the WCS 2016 need to go on a positive offensive and lay 3URSRVDOVIRUPRYLQJIRUZDUGDQG DSDWKWKDWZLOODOORZJUHDWHUWUDQVSDUHQF\ By next year… carrier buy-in to reduce the overkill FACILITY CAPABILITY MATRIX (FCM) audit concept currently experienced VSHHGDQGDFFXUDF\ $VLJQLÀFDQWDQGLQÁXHQWLDOQXPEHU of companies participating to ensure impact By next year… 4'R\RXIHHOWKDWWKHUHZHUHHQRXJK ²&2$*SDUWQHUWHDPV&DUULHUDQG DWELL TIMES commitments made as actions from GHA location 7RKDYHDPRUHWUDQVSDUHQWDQG coordinated review of dwell time WKHFRQIHUHQFH" ²QHXWUDOYROXQWHHU*+$VWREH process LQFOXGHG²/RFDOKHURHV $0DQ\SDUWLFLSDQWVDQGWKHGLUHFWIHHG FDUULHUDQG*+$FRPELQDWLRQV 6HOIFRPSOHWLRQRIWKH)&0H[HUFLVH EDFNJLYHQVXJJHVWHGWKDWWKHUHVKRXOGEH from COAG to agree on ‘dwell time )RUPDOYHULÀFDWLRQE\&2$*FDUULHU mapping’ with ‘improvement scope’ VRPHFOHDUDQGVLPSOHWDUJHWVWDVNVDQG $OOUHVXOWVFRQVROLGDWHGDQGSUHOLPLQDU\ ,GHQWLI\WKHULVNDUHDVWKDWLPSDFWRQ DFWLRQV:LWKWKHIDFWWKDW,$7$VHQLRUPDQ presentation during the OPS track of Customer Experience and/or Customer WCS 2016 in Berlin DJHPHQW DQG PHPEHUV RI &2$* KDG PHW Perception ,$7$VLJQRIIRQÀQDOYHULÀFDWLRQH[HUFLVH ,QYLWHORFDOKHUR*+$VWRSURYLGHWKH SULRUWRWKHFRQIHUHQFHWKHIHHOLQJRIFRP for formal ‘success’ review during ACH same PLWPHQW ZDV HTXDOO\ HFKRHG 7R WKLV HQG 2016 3UHSDUHDQLQGXVWU\¶FRQFHUQ·UHSRUWIRU VRPHÀQDOSRLQWVDQGVOLGHVZHUHSURYLGHG presentation in Berlin at WCS 2016 By next year… ,GHQWLI\WKHULVNLPSDFWDQGDOVRWKH 7KHVH EDVLF REMHFWLYHV LI GRQH ZHOO ZLOO SLA TEMPLATE ¶ULJKWWKLQJVWRGR·²WKHVHWKHQWREH demonstrate how things can be done better $VLJQLÀFDQWDQGFRQVLVWHQWXSWDNHLQ presented at next years ACH and collectively - like minds wanting to sim- WKH&2$*LQÁXHQFHG6/$WHPSODWH plify our processes without compromising FDUULHUVWRODXQFKWKHWHPSODWHDQG By next year… introduce ‘MUTUAL & JOINT’ exercises SOLID AND ACHIEVABLE INITIATIVES RXU FRUH SULQFLSOHV DQG IRXQGDWLRQV 6HH &OHDUPHDVXUDEOHFULWHULD ,$7$WHDPWRDJUHHRQVROLGDQG ¶%\QH[W\HDU«·VOLGHV &OHDUSURDFWLYHUHSRUWLQJDQG achievable initiatives that are driven and not ‘recommended’ &2$*UHSUHVHQWDWLYHVDOVRJDYHDVROLGXS YHULÀFDWLRQRIDFFXUDF\DQGUHOHYDQFH / Customer Experience $OOSRLQWVWREHFRPPXQLFDWHGWR date on their activities and development and 7KHRSSRUWXQLW\IRUYROXQWHHU*+$V &2$*IRUYHULÀFDWLRQHQGRUVHPHQW the combined input and action planned gives to be included and FULL SUPPORT a positive approach to meeting the chal- 8SGDWHDQGEHQHÀWUHYLHZLQFOXGHGLQ 5RDGPDSIRU5HVXOWVFOHDUPLOHVWRQHV 2SHUDWLRQVWUDFNGXULQJ:&6² and expectations. Q OHQJHVDKHDG7KHUHVXOWVRIWKHDFWLRQVDQG

CARGO AIRPORTS AIRLINE SERVICES :LQWHU Spread your news Fast. Far. Frequently.

Increase the exposure of your news and promotions with CHAMP’s online announcement portal, CargoUPDATE.

ACH Conference VHWWRIDOOVKRUWRIWKH,$7$WDUJHWRIE\ 2015 – a technology the end of the year customs and e-Customs FRPSOLDQFHYLD7UD[RQ*OREDO&XVWRPV 7*& SURYLGHU·VSHUVSHFWLYH KDV JUHDWO\ LPSURYHG QRZ HPEUDFLQJ Steve Hill, Principle FRXQWULHV ZLWK D IXUWKHU XQGHU HYDOXD- WLRQ ,Q DGGLWLRQ LPSOHPHQWDWLRQ RI &DUJR Industry Consultant, DLUSRUWWRDLUSRUW TXDOLW\ VWDQGDUGV CHAMP Cargosystems KDV DOVR LQFUHDVHG ,Q JHQHUDO PRUH GDWD DUHGLJLWLVHGDWVRXUFHDQGGDWDTXDOLW\KDV improved along the whole transport chain. 7RSLFVDWPRVSKHUH &+$03 &DUJRV\VWHPV KDV GHYHORSHG $ WKHPH UXQQLQJ WKURXJK WKH HYHQW H[- VROXWLRQVWKDWKHOSDLUOLQHV*+$DQGPDLO %UHDNRXWVHVVLRQ0HVVDJLQJ plained the conformance and compliance VHUYLFHSURYLGHUVWRPHHWVKLSSHUV·DVSLUD- ERWWOHQHFNV aspects facing handlers and the pressure tions and improve traceability of shipments 7KH GLVFXVVLRQ VKRZHG WKDW PHVVDJLQJ SXW RQ JURXQG KDQGOLQJ DJHQWV *+$V E\ and visibility along the supply chain. bottlenecks occur mainly due to companies the procurement departments of airlines. working with different system versions that 7KH *+$V VHHP WR EH XQGHU HQRUPRXV 3. The technology challenge sometimes cannot communicate without FRVWSUHVVXUHVZKLFKVRPHIHHOVWLÁHYDOXH (Presentation by Oliver Neerfeld, Head ÁDZZLWKHDFKRWKHULQDPXOWLWLHUHQYLURQ- SURSRVLWLRQV 6HUYLFH DJUHHPHQWV LQ H[- RI&RPPHUFLDO2SHUDWLRQV$VLD3DFLÀF PHQW ,$7$ VKRXOG SURPRWH &DUJR ;0/ DV FHVV RI SDJHV DUH LQFUHDVLQJO\ PRUH CHAMP Cargosystems) SULPDU\UHIHUHQFHIRUPHVVDJLQJ+RZHYHU GHPDQGLQJ DQG GLIÀFXOW WR IXOÀO 7KH\ DOVR 1HHUIHOG VXPPDUL]HG ZKDW &+$03 KDG WKHUHDUHDOVRVWLOOQXPHURXVQRQ(',KDQ- VHHP WR VWLÁH LQQRYDWLRQ DQG UHVWUDLQ SUR- done over the past year and what solutions dlers that need to be enticed to participate FHVVRSWLPL]DWLRQVDW*+$OHYHO:KLOVWWKH ZHUHFXUUHQWO\LQWKHSLSHOLQH in electronic data exchange. *+$VWU\WRGRWKHLUEHVW,JRWWKHLPSUHV- &+$03 &DUJRV\VWHPV DQG LWV FXVWRP- One of the key aims of the air cargo indus- sion they do not feel appreciated. ers have made considerable progress on WU\ LV WR VKUHG SDSHU SURFHVVHV +RZHYHU the technology path during the last twelve the air cargo industry as a whole should not 3DQHOGLVFXVVLRQ$YLDEOH PRQWKV7KRVHDLUOLQHVWKDWKDYHQRW\HWVKHG think merely about replacing paper by elec- HFRPPHUFHSODWIRUPIRUWKH their legacy systems or are in a transforma- WURQLFPHVVDJLQJ,WVKRXOGIRFXVRQÀQGLQJ DLUFDUJRLQGXVWU\" tion process are under pressure to migrate to OHDQHUPRUHFRVWHIÀFLHQWSURFHVVHVGHOLYHU 7KLV GLVFXVVLRQ ZDV DQ LQWHUHVWLQJ FRQ- new technology platforms in the next two to more value to customers and a better cus- tinuation of the talk on the same theme three years in order to engage with industry tomer experience. DW WKH ,$7$ :&6 LQ 6KDQJKDL 6KLSSHUV initiatives such as the continued drive to re- have demanded and continue to demand move paper from the processes. :KDWGLG&+$03WDNHKRPH a higher level of visibility along the whole 7KH &+$03 FRPPXQLW\ LQIRUPDWLRQ V\V- IURPWKH$&+FRQIHUHQFH" air cargo supply chain and better trace- tem CargoUpdate has increased market 7KH FRQIHUHQFH GLVFXVVLRQV UHLQIRUFHG DELOLW\RIVKLSPHQWV$LUOLQHVHUYLFHVFXU- SHQHWUDWLRQ7KHZHEEDVHGIUHLJKWIRUZDUG- &+$03·V YLHZSRLQW WKDW WKH DLU ORJLVWLFV rently lack transparency compared with LQJV\VWHP/RJLWXGHKDVZRQQHZFXVWRP- supply chain must become more visible and LQWHJUDWRU VHUYLFHV 7KHUH LV DOVR D GH- HUV,WHQDEOHV60(IRUZDUGHUVWRPDQDJH WUDQVSDUHQWWRVKLSSHUV9LVLELOLW\DQGDFFHV- PDQGIURPVKLSSHUVWKDW*+$VKRXOGEH TXRWHVVKLSPHQWVERRNLQJVDQGFRQVROLGD- sibility to the right data are fundamental in able to track shipments globally across WLRQVPRUHHIÀFLHQWO\DQGFRVWHIIHFWLYHO\,W PDQDJLQJVXSSO\FKDLQV&DUJRLVFXU- GLIIHUHQW DLUOLQHV $Q HPHUJLQJ VLWXDWLRQ also provides access to one of the largest rently reshaping itself and expectations are is that an increasing number of shippers H$:% QHWZRUNV 7UD[RQ FDUJR+8% ZKLFK KLJKWKDW&DUJRSURFHVVHVFDQUDLVH consider by-passing forwarders and go di- connects more than 100 airlines. transparency along the air logistics supply rectly to the airline handler to ensure the 7KH LQGXVWU\ OHDGLQJ PHVVDJLQJ SODWIRUP FKDLQ&DUJRGRQHZHOOVKRXOGDOVR QHFHVVDU\SURFHVVWUDQVSDUHQF\/D3RVWH LV UHDG\ WR IXOO\ VXSSRUW WKH ,$7$ &;0/ 9 substantially reduce time spent managing would be interested to work directly with VWDQGDUG+RZHYHUPDQ\DLUOLQHVDQGDJHQWV LUUHJXODULWLHVUHGXFLQJRIÁRDGVDQGLPSURY- *+$ IRU D PRUH LQWHJUDWHG PDLO VHUYLFH DUHQRW\HWUHDG\$QGWKHUHDUHVWLOOKXQGUHGV LQJÁRZQDVERRNHGSHUIRUPDQFH*+$VDUH 7KHSDQHOIHOWWKDW&DUJRPLJKWEH RIQRQ(',IRUZDUGHUVDQGKDQGOHUVFDXVLQJ NHHQWRFRQWULEXWHWR&DUJREXWWKH\ D SURJUDP WR GHOLYHU KRUL]RQWDO YLVLELOLW\ bottlenecks in electronic data exchange. want to be sure that airlines do not use the across multiple players. $OWKRXJKJOREDOH$:%SHQHWUDWLRQORRNV system to put them under more pressure. Q

CARGO AIRPORTS AIRLINE SERVICES :LQWHU INTRODUCING A NEW SENSE OF FLYING SUSTAINABLE TRANSPORT ON BOARD THE NEW FINNAIR AIRBUS 350

Long-haul A350 XWB service starts from November - with ﬁrst ﬂights to/from Shanghai, followed by Bangkok, Beijing and Hong Kong.

Read more at ﬁnnaircargo.com Vertical focus here has been a record ZHDUHTXRWLQJPRQWKO\:KDWLWGRHVZKHQ level of consolidation this rates are this volatile is that it starts to year among international compress the margin.” This applies to for- T freight forwarding and lo- warders as well as carriers. gistics companies, much Some analysts have suggested that this C.H. ROBINSON RI LW LQYROYLQJ 86 ÀUPV DV HLWKHU DFTXLUHU ORZDQGYRODWLOHUDWHVHQYLURQPHQWLVOLNHO\ RUDFTXLUHHZLWK(XURSHDQ3/VVXFKDV to remain for another two or three years, '69 *HRGLV DQG .1 PRYLQJ WR DFTXLUH although Short says it is hard to say. “But 86 3/V DQG IUHLJKW EURNHUDJH ÀUPV DQG ZH DUH GHÀQLWHO\ ORRNLQJ ZHOO LQWR WKHKLJKO\DPELWLRXV86JURXS;32/RJLV that this is going to continue,” he observes. WLFV VQDSSLQJ XS &RQZD\ DQG (XURSH·V +HH[SHFWVWKLVLVDOVROLNHO\WREHVLPL

)25:$5',1*,17(59,(: Norbert Dentressangle, for example. lar picture for air freight. “But that is even In contrast, things have been relatively PRUHGLIÀFXOWWRSUHGLFWWKDQZLWKRFHDQ Mike Short, C.H. Robinson stable at fellow US transport and logistics freight, because air freight really relies giant C.H. Robinson, which has largely more upon the global economy than it In a volatile and FRPSOHWHG WKH LQWHJUDWLRQ RI 3KRHQL[ ,Q does anything else.” It also responds ternational, the forwarder it bought in late PRUHTXLFNO\WRÁXFWXDWLRQVLQWKHJOREDO consolidating freight DQGWKDWEURXJKWWKHJURXS·VSUHVL economy than ocean freight. GHQW RI JOREDO IRUZDUGLQJ 0LNH 6KRUW WR forwarding landscape, C.H. Robinson. Perfect storm C.H. Robinson has 7KDW VDLG ¶VWDEOH· LV QRW D WHUP PDQ\ %XWWKHGHFLVLRQVE\FRQWDLQHUOLQHVWRPDNH would apply this year to global air and sea big investments in new capacity that is con- concentrated on IUHLJKW IRUZDUGLQJ ´7KH PDUNHW KDV EHHQ tinuing to come online, now coinciding with offering solutions very volatile on both the air freight and a time when demand from China is slowing the ocean freight side,” Short notes. “We down, “is something of the perfect storm for beyond the rates, have very similar things going on with both the carriers, which is causing more pressure products, which is not normal: there is a for them to consolidate as well - and the president of global lot of capacity coming on, and the demand outcome of that really remains to be seen”, forwarding Mike Short IRUWKDWFDSDFLW\LVLQVXIÀFLHQW6RLWLVUH says Short. ally creating some issues with the rates The merger of Cosco and China Ship- tells Will Waters DQG ZLWK WKH SURÀWDELOLW\ RI WKH FDUULHUV SLQJ *URXS ORRNV OLNHO\ WR EH WKH QH[W RI and hence we are having to continue to these consolidations, although it just one TXRWHRXUFXVWRPHUVPRUHRIWHQWKDQZH RIPDQ\VLJQLÀFDQWUHFHQWPHUJHUVDQGDO ever have in the past, due to the continued liances in the last few years. volatility.” “We have tried to utilise the carrier base Inevitably, this has meant some custom- EDVHG RQ WKH FXVWRPHU·V QHHGV DQG WKH ers have pulled away from longer-term more they create alliances, the fewer tools contracts in favour of playing the spot-rate you have to create the answer for what the PDUNHWV DOWKRXJK 6KRUW VD\V &+ 5RELQ needs are of the customer,” Short says. son has a good mix of customers when it Short says it is both the current low level comes to contractual or non-contractual. RIUDWHVDQGWKHÁXFWXDWLRQRUYRODWLOLW\WKDW “But customers right now are very aware of LVVTXHH]LQJPDUJLQVIRUIRUZDUGHUV´7KH WKHGURSLQPDUNHWUDWHVµKHVD\V IDFWWKDWWKHUHLVYRODWLOLW\UHTXLUHVFXVWRP “The majority of our business is transpa- HUVWRUHTXHVWTXRWHVDQGJHWFRPSHWLWLYH FLÀFHDVWERXQGRFHDQIUHLJKWDQGWKDWLV TXRWHV ZD\ PRUH RIWHQ WKDQ WKH\ ZRXOG DEXVLQHVVZKHUHZHZRXOGXVXDOO\TXRWH have done in the past,” he says. maybe three or four times a year, and now This puts pressure on suppliers to be

44 CARGO AIRPORTS AIRLINE SERVICES :LQWHU We’re fast. We care.

45 minutesminuutes

Maastricht Airport’s cargo product gives your supply chain a competitive edge in Europe. To ﬁnd out how, please contact Mr. Wiel Dohmen, Managing Director at +31(0)43 358 99 99 or by email: [email protected].

www.maa.nl/cargo )25:$5',1*,17(59,(:&+52%,1621

even more competitive than last time. initiatives that focus on air freight, so we It has certainly been a very busy period And it has, understandably, led to more have been gaining there as well – we are RQWKHDFTXLVLWLRQVLGHIRUWKHORJLVWLFVVHF customers pulling away from long-term ORRNLQJIRUHIÀFLHQFLHVDQGJDWHZD\V$QG tor as a whole, with many of the transac- contracts. DOO RI WKLV PXOWLSURQJHG DSSURDFK LV ORRN tions involving US companies. But Short ing to develop us into a well-rounded global says this does not put pressure on compa- Contractual environment freight forwarder, which is happening.” QLHVOLNH&+5RELQVRQWREHLQWKDWJDPH “We try to instruct our customers that if 6RPH SDUWV RI WKH FRPSDQ\·V GHVLUHG “We get on with our own business,” he they want to go into a contractual environ- expansion can be achieved organically, VD\V´2XUIRFXVLVRQRXUSHRSOHSURFHVV ment, that they do it with a portion of their while other parts of the business will most and technology. There have been a lot of business, so that they are not tied to that OLNHO\ QHHG WR EH DFFHOHUDWHG E\ DFTXLVL DFTXLVLWLRQVRXWWKHUHEXWZHGRQRWVXF FRQWUDFWµVD\V6KRUW´,WLVGLIÀFXOWEHFDXVH tion at some point again, as happened FXPE WR WKDW SUHVVXUH :KDW ZH ORRN WR DV WKH PDUNHW JRHV GRZQ WKH\ H[SHFW D ZLWK WKH FRPSDQ\·V SXUFKDVH RI 3KRHQL[ GRLVÀQGWKHULJKWFXOWXUDOÀWDQGLIWKDW UHGXFWLRQDQGLIWKHPDUNHWJRHVXSWKH\ International in late 2012 – which greatly LV WKH ULJKW ÀW WKDW KHOSV XV H[SDQG ZLWK GRQ·W H[SHFW DQ LQFUHDVH ,W·V TXLWH D GRX H[SDQGHG&+5RELQVRQ·VIUHLJKWIRUZDUG our people, process, and technology, then EOHHGJHG VZRUG WKDW ZH·UH WU\LQJ WR ZRUN ing scale. we will do so. But we will not give in to the through, and it is something that is relatively “We have always felt that it is a combina- pressures of just buying to buy.” new, within the last three years.” tion of both,” says Short. “It really depends :KLOHFXVWRPHUVRIWHQWDONDERXWWKHGH RQRXUH[SHUWLVHLQWKHPDUNHWµ Automation and productivity sire for stability, sometimes saying it is more The company has been vocal recently So at a time when some forwarders have important than the actual prices them- DERXW LWV DWWHPSWV WR H[SDQG LWV (XURSH been struggling with the process of improv- selves, but in reality they want both stability Asia business, although this is just one of LQJ WKHLU OHYHOV RI DXWRPDWLRQ HIÀFLHQF\ and low prices, forwarders observe. many areas it is wanting to develop. “It not and productivity, where does C.H. Robinson ´7KH\ GR 7KDW·V ZK\ ZH UHDOO\ ORRN WR only follows geography, it follows verticals sit in terms of its IT systems? partner with our customers and offer solu- DVZHOODQGWKHUHDUHUHDOO\TXLWHDORWWKDW ´:HDUHFORVLQJLQRQWKHÀQDOSKDVHRI tions beyond the rates,” says Short. “Most ZHDUHORRNLQJDWµVD\V6KRUW LQWHJUDWLRQ ZLWK WKH 3KRHQL[ DFTXLVLWLRQµ of it revolves around IT, but we really do says Short. “That has gone extremely well.” try to get involved and become one with Vertical growth The combined forwarding business uses the customer.” These verticals it is particularly focusing on a platform developed in-house by C.H. Rob- Attempts to develop partnership is, of include the automotive, textile, and chemi- inson. Short, who joined the business from course, challenged by this volatility. FDOVPDUNHWVIRUERWKDLUDQGRFHDQIUHLJKW WKH 3KRHQL[ VLGH VDLG WKH HIÀFLHQF\ DQG ´,W LV DOZD\V D FKDOOHQJH EXW , OLNH WR Short says there is no particular gap in SURGXFWLYLW\RIWKHFRPELQHGRUJDQL]DWLRQ WKLQNWKDWRXUUHODWLRQVKLSVZLWKFXVWRP terms of geographical footprint where it is are now higher than that achieved within ers are strong enough to withstand the QRW DEOH WR PHHW FXVWRPHUV· QHHGV IURP 3KRHQL[´(YHU\GD\LVDQHZGD\LQWKH,7 volatility, and to this point we have been these or any other verticals, with one op- world, and we continue to progress,” adds JDLQLQJ PDUNHW VKDUH DQG QRW ORVLQJ LWµ tion being to grow with a customer into a Short. “But I feel very comfortable with Short stresses. FHUWDLQPDUNHWZKHUHLWGRHVQRWKDYHLWV ZKHUH RXU SURGXFWLYLW\ DQG HIÀFLHQF\ LV own owned infrastructure. today.” Market position ´7KHUH LV QRW D PDUNHW WKDW ZH GRQ·W Short says the IT integration of the old So, with C.H. Robinson particularly strong FRYHUWKDWLVDPDMRUPDUNHWWRGD\,ILWLV 3KRHQL[ EXVLQHVV LQWR WKH &+ 5RELQVRQ on the ocean freight side and in the transpa- QRWRXURZQÁDJÁ\LQJWKHUHZHKDYHH[ platform is 80% complete. “We integrate FLÀFLQERXQGPDUNHWKRZGRHVKHVHHWKH clusive partnerships with agents that are it by service, and we have one left to go, FRPSDQ\·V SRVLWLRQLQJ LQ WKH PDUNHW ZLWK really typically top freight forwarders in that which will be done within the next three some large customers increasingly wanting geographic location,” he says. months. Air exports, air imports, ocean more global deals and one stop shops? %XWH[SDQGLQJLQFHUWDLQPDUNHWVZRXOG export, ocean import, customs clearance… “Right now, we are perceived as being allow it to achieving further economies of Those were all done individually.” The one RQHRIWKHEHVWLQWKHPDUNHWDWZKDWZHGR VFDOH ´,Q RXU ZRUOG YROXPH VSHDNV DQG remaining service to integrate is ocean im- and I feel that although we are positioned that is ultimately the goal,” says Short. “We port transportation – although this is the one way today, it is not going to be that way have partnerships with some great, great biggest one. WRPRUURZµ VD\V 6KRUW ´$QG ZH DUH ORRN companies. But at the end of the day, con- :KLOH,7PRYHVRQTXLFNO\6KRUWEHOLHYHV ing to expand our global footprint, so as trolling your own destiny is the name of the WKHFXUUHQWSODWIRUPJLYHVWKHRUJDQL]DWLRQ ZHJDLQPDUNHWVKDUH²DQGZHKDYHKDG game.” a few years, potentially, on a platform that

46 CARGO AIRPORTS AIRLINE SERVICES :LQWHU Handled in good company.

From arrival until departure, each temperature sensitive shipment is constantly monitored by an experienced and dedicated team, as well as high-tech survey equipment. Quality ﬁrst.

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provides the right level of automation and is one that we are monitoring, and we try to “Right now their focus seems to be, visibility. This he sees as a major advantage. lend our opinion from time to time. But it is ZLWKRXUODUJHUFXVWRPHUVIRFXVHGRQ(', “This industry is littered with integrations PDUNHWGULYHQµ connectivity, and being able to do – not that went wrong,” he observes. “There are This means it is unclear who is really only communicate, but also order entry, still companies today that operate on mul- JRLQJWREHWKHGULYHUEHKLQGPDNLQJSUR WKURXJK(',FRQQHFWLRQV7KDWVHHPVWREH tiple platforms. The fact that we are on one JUHVV ZLWK LW (VVHQWLDOO\ LW VHHPV WKDW the hottest thing right now.” platform that can accept new integrations somebody still has to demonstrate a lot of This means wanting suppliers to be con- LVDOHJXS:HKDYH,7SURJUDPPHUV YDOXHZLOOEHFRPLQJTXLWHTXLFNO\IURPH nected with their systems directly, with on staff to help with these integrations.” Freight participation in order to encourage several aims but the ultimate end being to IRUZDUGHUV LQ WKH 86 WR PDNH WKH QHFHV reduce their costs. Air cargo operations sary investments in time and resources. ´7KHUH·VQRVHFUHWLQWKHIDFWWKDWFRP $OWKRXJK&+5RELQVRQLVORRNLQJWRH[SDQG $QGOLNHPDQ\IRUZDUGHUVLQWKH86²DQG SDQLHVDUHWU\LQJWREHPRUHHIÀFLHQWFXW its presence in the air freight forwarding globally – C.H. Robinson is hoping that WKHLUFRVWV,WKLQNDWWKHHQGRIWKHGD\WKH sector, Short has no particular issues with WKHVH GHYHORSPHQWV ZLOO PDNH SURJUHVV opportunity is to create data integrity, but it the current structure of the air logistics EXWLWVHHPVXQOLNHO\WREHDÀUVWPRYHURU is also to reduce labour costs.” FKDLQDQGLWVOHYHOVRIRSHUDWLRQDOHIÀFLHQF\ early adopter. 6KRUW VD\V WKLV GRHV QRW UHTXLUH DQ\ “The only thing that really comes to mind ´:H GHSHQG RQ D ORW RI RXWVLGH LQÁX JUHDW VWHS FKDQJH LQ WHFKQRORJ\ WR PDNH LVWKDWZKHQWKHYROXPHVFRPHEDFNLWZLOO ences or factors,” says Short. “But that is WKDWKDSSHQLWLVPRUHDFDVHRIZRUNLQJ DOORZIRUHIÀFLHQFLHVE\RSHUDWLQJWKHIUHLJKW DWRSLFWKDWHYHU\RQHVSHDNVRIDQGEHLQJ WKURXJKZLWKLQGLYLGXDOFXVWRPHUVWRPDNH ers. The freighters right now are having dif- VHOÀVK DV D IUHLJKW IRUZDUGHU ZH ZRXOG those connections. ÀFXOW\RSHUDWLQJLQDQHQYLURQPHQWZLWKORZ love to see it.” ´(YHU\RQH FDQ EH D OLWWOH ELW GLIIHUHQW rates, mainly brought on by the passenger DQGZHZRUNWKURXJKWKHPWKURXJKHDFK SODQHV 6R , WKLQN WKH YROXPHV ZLOO GULYH Potential for technology individual customer every time.” EDFNZKLFKZLOOEULQJWKHHIÀFLHQF\ODWHUµ But in terms of the potential for technology 2QHWKLQJWKDW&+5RELQVRQKDVGRQH in general, in air and sea freight, to further Current priorities WR WDNH JUHDWHU FRQWURO RI WKH DLU ORJLVWLFV LPSURYHHIÀFLHQFLHV6KRUWDQWLFLSDWHVWKHUH ,Q WHUPV RI KLV RUJDQLVDWLRQ·V SULRULWLHV IRU process is to bring cargo screening in will be a lot of opportunities for productiv- WKHFRPLQJZHHNVDQGPRQWKV6KRUWVD\V house, investing in its own cargo screening ity gains, either with the technology that we “Right now, we are focused on creating a HTXLSPHQW´7KDWFDQKHOSVRPHWLPHVKHOS have now, or within the next few years. VWUDWHJ\ IRU :H DUH UHYLHZLQJ ZLWKHIÀFLHQF\DQGWKURXJKSXWµ ´,·P VXUH WKHUH ZLOO EH ,·P QRW D WHFK in that process. That is really where we are But it seems that IATA-led initiatives to JX\ EXW IURP DQ ,7 SHUVSHFWLYH ,·P VXUH at today, and that is a lot of the focus to- GLJLWDOLVHDQGSURYLGHDTXDOLW\IUDPHZRUN WKDWWKHUHDUHHIÀFLHQFLHVWREHKDYHDQG day. We have come a long way in the last for the air freight sector have got some way ,·PVXUHWKDWWKH\·UHFRPLQJ:HWU\WRVWD\ three years, and we typically will review that WR JR LQ WKH 86 PDUNHW 6KRUW VD\V KH LV ahead of it as we go, but it changes almost process, and then that will help us create a XQIDPLOLDUZLWK&DUJRDQGOLNHPDQ\ GDLO\LWVHHPV%XW,·PVXUHWKHUHZLOOEHµ strategy going forward.” US forwarders, C.H. Robinson has not yet ,QWHUPVRISHUIRUPDQFHDQGTXDOLW\PRQ been persuaded to participate in e-Freight, LWRULQJ6KRUWVD\V&+5RELQVRQXVHV´TXLWH Predictions for next year: More DOWKRXJK KH DGGV ´,W LV GHÀQLWHO\ VRPH DIHZµ.3,VPRQLWRUHGRQDGDLO\EDVLV volatility thing that we are watching. It is a very hot ´,WLVIRURXURZQEHQHÀWEXWDOVRIRUWKH $QGDVIRUQH[W\HDU6KRUWVD\V´,WKLQN WRSLFLQWKHPDUNHWDWWKLVSRLQW,WZRXOG customers in regard to timeliness and ac- that we are going to continue to differen- OHDGWRDWRQRIHIÀFLHQFLHVLQZKDWZHGR curacy. There are a lot of things that ben- tiate ourselves by creating solutions with today. We have been slow to adopt this in HÀWWKHFXVWRPHUDVZHOOµ the customer. And it is going to be volatile. WKH 86 PDUNHW %XW LW LV VRPHWKLQJ WKDW In terms of directions customers are $QGZKHQWKLQJVDUHYRODWLOHMXVWOLNHDQ\ we would hope, as a freight forwarder, we pushing freight forwarders currently, either other time, you really need to listen to the could do – not only in air freight, but cus- as an organisation or as freight forwarding customer and create solutions based on toms; everywhere would be much better. It sector? Short says: their needs.” QQQ

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