FIRST QUARTER 2016 – Edition 10 INTERNAL NEWS, EVENTS, BUSINESS, COMMUNITY & EDUCATION! CARGOchat Through thick and thin The introduction of dedicated leased flights when volumes justify more Times are tight and margins are freighters to work BidAir Cargo capacity, or to plug a gap when under pressure – we feel it too. So we overnight express services has a competitor suspends flights. It know that shippers and agents look added a whole new dimension to must be borne in mind, however, for the best deal : cherry-picking can airport-to-airport line-haul for the that putting more aircraft into the be an attractive short-term decision. express freight industry. air incurs significant operating However, strategically, it makes As you know, daytime cargo is costs to be defrayed by revenue. good business sense for non-regular carried in passenger aircraft. These So we are reliant on promised cargo users to support our freighters. Then have to fly to a fixed schedule materialising as forecast. That means they have someone to turn to when anyway, regardless of cargo volumes. playing open cards with each other. they experience a cargo spike, the It’s a different picture with overnight We are immensely proud of those usual carrier can’t accommodate express. While we have our regular clients who support us regularly their cargo, or their trucks suffer patterns networking coastal airports and exclusively, thus guaranteeing downtime. and Johannesburg, we also have predictable volumes. At the same That’s why we believe short-term the capability of adding extra flights time we recognise the choice of considerations should give way to to cope with a surge in demand. It shippers to share their cargo with the partnership approach. Partners is this flexibility which came to the other airlines or even use their own support each other through thick rescue over the peak holiday season. trucks for inter-city line-haul from and thin. Give us a fair share of your We can schedule such additional time to time. business in the good times and we’ll Continued on page 3 First Quarter 2016 – BidAir CARGO Chat 1 NEWS Through thick and thin Continued from page 1 be there for you when times are tough. That means when express freight capacity is at a premium because competitors can’t fly or are using alternative aircraft with lower capacity. It’s the solution during peak seasons when retail comes out of hibernation or perishables suddenly command the lion’s share of capacity. Moreover, getting to know each other better gives us “Strong, truly collaborative Industry both the relationship to match the express supply chain to the needs relationships hold the key to much of the of your cargo for special handling, hoped for future industry success as each reliability, security, cargo care, speed supply chain stakeholder needs to be open and personal service. The old “master and servant” and share to extract maximum mutual benefit paradigm worked well in the early and creation of value for the ultimate days when express freight was the system user. The traditional vertical exception more than the rule and procurement led relationships must give way it was difficult to forecast volumes. These days, given that most to horizontal business partner relationships to companies rely on express logistics fully realize this opportunity.” to sustain their day-to-day business, Glyn Hughes, Global Head of Cargo for IATA the partnership approach is preferable because it means cargo is and make 2016 a year of mutual expected and can be accommodated loyalty, open communication and without disappointment. fairness for the success of all our So let’s work more closely together businesses. GARRY MARSHALL – ChiEF EXECUTIVE OFFICER ALLOTMENT AGREEMENTS BY KARL DAVIDS, CHIEF OPERATIONS OFFICER confidently. Thus, we believe our The advantage is that when volumes regular, loyal supporters can benefit suddenly increase sharply – perhaps The modern express supply chain from requesting an allotment when a competitor cancels a flight for is an exercise in close collaboration agreement. technical or other reasons – and we by all parties to mutual benefit. To are suddenly swamped with ad-hoc our loyal customers who support Entering into an allotment bookings, your capacity is protected our overnight express service agreement means we and you can still give your customers consistently, we promise reciprocal contract the required cargo the service they depend on. support even at times when capacity capacity for a pre-designated We can also bring additional is under pressure. These days, with period or season. You resources into play, allocating most companies using express guarantee the cargo and we an additional aircraft to our route freight as a regular component guarantee the capacity. network as we did during the holiday of their supply chain, it is much peak – if we are confident in advance more feasible to forecast volumes that sufficient payload is guaranteed. 2 BidAir CARGO Chat – First Quarter 2016 NEWS The Gearing up for St Helena International Airport opening Scene IATA reports that African airlines Freight Tonne Kilometres – FTKs - (ie. revenue-generating cargo flown) declined by 8.4% in December though for 2015 as a whole the region grew by 1.2%, compared to the global average of 2.2%. This in turn was a slower pace of global growth than the 5.0% recorded in 2014. The Freight Load Factor Left to Right: Marlene Brown Supervisor, Julie Cranford, Karen Ellick, Nadia Henry, Brenda Stevens (percentage of available capacity British Airways flights from Johannes- learn that they acquired knowledge taken up by the market) in 2015 burg to the new airport at St Helena, and experience quickly. was 29.7%, the lowest of any operated by Comair, are expected to The ladies undertook 10 days training region. The under-performance start in May. They replace the 2000 in all aspects of the processes and of the Nigerian and South African km sea voyage which takes five days. controls essential for efficient cargo economies was a challenge Cargo capacity is expected to be in operation, from correct packaging, throughout the year. the region of four tonnes each way. acceptance, cargo care to hand-out, The industry’s key challenges The remote island is import depend- with the accompanying documentation will be discussed in detail at the ent, with food and beverages, animal and use of information systems. “This World Cargo Symposium (WCS) feed, fuel oils, building materials, mo- was the equivalent of the practical side in Berlin, 15-17 March. tor vehicles, machinery and parts the of Cargo 1 and 2 training,” says Joe. main commodities. “But there was more to come. The BidAir Cargo has played host to the team then embarked on the five day St Helena team who will be responsible Category 6 Dangerous Goods course for running the new airport’s cargo which, despite its being intimidating, operations as cargo handling agents. they passed first time.” They returned “As the island is so remote and home with reference materials to this is the first entry of aviation, ensure that their learning remains the ladies encountered a degree of fresh and they are ready when the first ‘future shock’”, reports Joe Fyfer, wheels touch down. Operations Manager of BidAir Cargo, The St Helena team and their who oversaw their familiarisation, BidAir Cargo counterparts got on well education and training. “Yet such was together and are looking forward to a their enthusiasm and willingness to long and productive relationship. View of Potsdamer platz - financial district of Berlin, Germany First Quarter 2016 – BidAir CARGO Chat 3 NEWS TRANSPORTING LITHIUM-ION BATTERIES Some clients are concerned about of security compliance and have or contained in equipment. It is reports in the press to the effect the necessary permission to move aimed at shipments which comprise that The International Civil Aviation cell phones, tablets, laptops etc. batteries-only. Such shipments Organisation (ICAO) Council has when shipments are compliant with – if you have them - may still be prohibited the shipment of lithium- UN3481 packing instructions,” says transported on cargo aircraft such as ion batteries as cargo on passenger Roy Solomons, Chief Commercial our overnight dedicated freighters. aircraft from 1 April 2016. This Officer. “Please consult BidAir Cargo The ban is mandatory for ICAO article should put your mind at rest. if you are in any doubt as to what member states and thus applies “Your shipments which BidAir steps you must take to ensure such to South Africa. It will remain in Cargo moves on Comair’s British cargo can be accepted.” force until the new fire-resistant Airways and kulula flights are not The ICAO prohibition does not apply packaging standard is designed, affected as we are at the forefront to lithium-ion batteries packed with expected by 2018. Top Award for BidAir Cargo, Durban Dube Cargo Terminal has presented its award for the highest annual domestic tonnage for the year 2015 to BidAir Cargo, Durban. “We are honoured to collect this prestigious award on behalf of our clients who entrusted us with their cargo, “ says Manager, Lenishia Naicker, who received the award. “It is their loyalty, support and partnership that enabled us to generate the volumes.” Lenishia also paid tribute to the staff of BidAir Cargo, who sustain superior standards of client Lenishia Naicker, Manager of BidAir Cargo Durban and Hamish Erskine, the property executive at Dube TradePort. service. PORT ELIZABETH PETLOUNGE Our furry and feathered friends travelling to and from the Eastern Cape are excited to learn that the new PetLounge is fully furnished and ready for launch shortly. The facility has been custom-designed to international standards for the comfort and safety of pets and another animals in transit.