April, 2009 Volume 12, Number 3

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April, 2009 Volume 12, Number 3 Air Cargo World Invites You to a FFREEREE WWEBINAREBINAR Sponsored by New Air Cargo Screening Mandates: The Next 50% April 14, 2009 at 2:00 PM EST PARTICIPANTS: The airline industry recently met the government’s deadline to screen The Honorable Asa Hutchinson 50% of all cargo aboard passenger aircraft, and is now facing the Former Under Secretary of the challenge of meeting the 2010 deadline for 100% screening. Initial Department of Homeland Security reports are somewhat optimistic about the impact on the supply chain, and Chairman of the Safe but a number of critical issues remain to be addressed: Commerce Coalition • Will the industry be able to maintain its effectiveness and effi ciency Dave Brooks as the 100 percent deadline nears? President American Airlines Cargo • How will the new ruling impact businesses and consumers dependent Brandon Fried upon just-in-time delivery? Executive Director • What innovative operational, security and fi nancial steps are being Airforwarders Association taken to adapt to the 100 percent screening environment? Chris Connell President The Webinar will feature insights on these issues from aviation and Commodity Forwarders Inc. security experts, including presentations from a panel discussion held at AirCargo 2009 and newly released interviews with the panelists by Brad Elrod Senior Manager Paul Page, editorial director of The Journal of Commerce. The Webinar Global Logistics Security will be released on April 14th, 2009 at 2:00 PM EST and will be available Pfi zer Pharmaceuticals on demand at www.aircargoworld.com/screening. For more information, please contact Steve Prince, Publisher, Air Cargo World, at [email protected] or 770-642-9170 INTERNATIONAL EDITION APRIL 2009 Europe’s Frontline Ancient Routes Renewed Blue Skies Go Green CCoverINT.inddoverINT.indd 1 33/20/09/20/09 11:30:25:30:25 PMPM viewpoint reening the supply chain – it begins conserve fuel and energy. It can literally be as with changing light bulbs. OK, cliché simple as changing lights. aside, there are business cases to be For example United Stationers, a wholesale Gmade for green initiatives - many of distributor of business products, took ad- which have grown from the grass roots vantage of a Sacramento, Calif. conservation demands made on companies by environmen- incentive program to retrofit the lighting sys- tally concerned customers, and like-minded tems in two of its distribution facilities. They employees - to become business strategies replaced 800 metal halide high-bay lights that can lower costs with new technology and create competi- Regardless of whether replacements that tive advantages. provided better light Today, the green one views global warming at less than half the movement is reaching energy consumption. the highest corporate and environmental The ROI was less echelon and is ef- issues as bogus, or as than 18 months and fecting change from the savings improve boardroom decisions an inconvenient truth, the company’s bot- to manufacturing and tom line to this day. logistics processes one undeniable fact has While this example Shan Hoel has a 14-year career with TransGroup across entire supply emerged – climate change just involves chang- Worldwide Logistics and chains. Regardless of ing the lights in two directs the company’s whether one views is real, at least in the sense facilities that are part EPA SmartWay Transport Partnership participation. global warming and of a larger supply environmental issues of business climate change. chain, many green as bogus, or as an initiatives can tie in inconvenient truth, one undeniable fact has with transportation and logistics activities to emerged – climate change is real, at least in improve efficiencies and bottom lines across the sense of business climate change. the entire enterprise. The business cases for green initiatives ex- Additionally, green initiatives are so impor- ist largely in the ability to translate them into tant to many companies that, all else being making economic sense. In many instances, equal, they choose material and service pro- this is comparable to the business case for viders based on their ability to support and lean distribution strategies – just substitute enhance those initiatives. Thus, green-differ- energy and fuel consumption costs for inven- entiated supply-siders can gain a competitive tory carrying costs. advantage. In other words, just as money is left on the The convenient truth is that logistics com- table when a company carries excess inven- panies leading the way may not only benefit tory, money is also left on the table due to by capturing value through cost savings and excess fuel and energy usage. competitive advantage opportunities, but may The good news is that any size company even enjoy the corollary benefit of achieving can realize bottom line value by implementing a more favorable public image – but that’s an- green strategies that improve efficiencies and other story. ACW ACW APRIL 2009 1 001ViewpointINT.indd1ViewpointINT.indd 1 33/20/09/20/09 11:47:25:47:25 PMPM April, 2009 Volume 12, Number 3 International Edition contents 18Old Trade Routes Echo Anew Airline axis shifts south? Europe’s New Frontine 22Forwarders survive in credit desert 18 Invest Sooner Or Die Later 36“IT is as huge as our airplanes” Business Or The Environment 40No Longer an option 40 36 22 2 APRIL 2009 ACW 002TOCINT.indd2TOCINT.indd 2 33/20/09/20/09 22:01:04:01:04 PMPM International Edition EDITOR Simon Keeble [email protected] ASSOCIATE EDITOR Trish Williams [email protected] CONTRIBUTING EDITORS Roger Turney, Ian Putzger CONTRIBUTORS Douglas Nelms, Peter Conway 4 COLUMNISTS Paul Forster, Brandon Fried ART & PRODUCTION DIRECTOR Jay Sevidal [email protected] WORLD NEWS EDITORIAL OFFICES 04 Americas 1270 National Press Bldg., Washington, DC 20045 • TSA To Miss 100 Percent Screening? (202) 355-1153/1172 • Fax: (202) 355-1171 • FedEx Profits Slump PUBLISHER • U.S. Congress Wants To Prosecute Steve Prince [email protected] • In the News… ASSISTANT TO PUBLISHER Susan Addy 08 Asia [email protected] • (770) 642-9170 DISPLAY ADVERTISING TRAFFIC COORDINATOR • Cathay Looks For New Markets Linda Noga • IATA Struggles To Find Silver Lining [email protected] • In the News... ADVERTISING/BUSINESS OFFICE 1080 Holcomb Bridge Rd., Roswell Summit Building 200, Suite 255, Roswell, GA 30076 12 Europe (770) 642-9170 • Fax: (770) 642-9982 • Cargolux Moves To Italy WORLDWIDE SALES U.S. Sales Hong Kong, Malaysia, • Germans Too Face Tough Times Associate Publisher Singapore • In the News… Pam Latty Joseph Yap (678) 775-3565 +65-6-337-6996 [email protected] [email protected] Europe, United Kingdom, Japan Middle East Masami Shimazaki David Collison [email protected] +44 192-381-7731 +81-42-372-2769 [email protected] Thailand China Chower Narula Beijing Office| [email protected] Nancy Sun (Sun Junqin) +66-2-641-26938 [email protected] Taiwan ++86 10 5879 5885 Ye Chang Shanghai Office [email protected] Isabella Hou (Hou Ying) +886 2-2378-2471 [email protected] Australia, New Zealand ++86 (21) 5116 8877 Fergus Maclagan DEPARTMENTS Guangzhou/South China [email protected] Sherry Yuan +61-2-9460-4560 01 Viewpoint 46 People/Events [email protected] Korea ++86 10-5879-5885, ext. 601 Mr. Jung-won Suh 45 Bottom Line 48 Forster’s Focus +82-2-3275-5969 [email protected] CUSTOMER SERVICE OR TO SUBSCRIBE: (866) 624-4457 Air Cargo World (ISSN 1933-1614) is published monthly by UBM Aviation. Editorial and production offices are at 1270 National Press Building, Washington, DC, 20045. Telephone: (202) 355-1172. Air Cargo World is a registered trademark of UBM Aviation©2009. Periodicals postage paid at Newark, NJ and at additional mailing offices. Subscription rates: 1 year, $58; 2 year $92; outside USA surface mail/1 year $78; 2 year $132; outside US air mail/1 year $118; 2 year $212. Single copies $10. Express Delivery Guide, Carrier Guide, Freight Forwarder Directory and Airport Direc tory single copies $14.95 domestic; $21.95 overseas. Microfilm copies are available from University Microfilms, 300 North Zeeb Road, Ann Arbor, MI 48106. Opinions expressed by authors and contributors are not necessarily those of the editors or publisher. Articles may not be reproduced in whole or part without the express written permission of the publisher. Air Cargo World is not responsible for unsolicited manuscripts, photographs or artwork. Please enclose a self-addressed envelope to guarantee that materials will be returned. Authorization to photocopy items for internal or personal use is granted by Air Cargo World, provided the base fee of $3 per page is paid directly to Copyright Clearance POSTMASTER: Send address change to: Center, 222 Rosewood Drive, Danvers, MA 01923, and provided the number of copies is less than 100. For authorization, contact CCC Air Cargo World at (508) 750-8400. The Transactional Reporting Service fee code is: 0745-5100/96/$3.00. For those seeking 100 or more copies, please 3025 Highland Pky Ste 200 contact the magazine directly. Downers Grove, IL 60515 POSTMASTER and subscriber services: Call or write to Air Cargo World, Subscription Services Department, PO Box 5051, Brent- For more information visit our website at wood TN 37024; telephone 888-215-6084. www.aircargoworld.com ACW APRIL 2009 3 002TOCINT.indd2TOCINT.indd 3 33/20/09/20/09 11:31:30:31:30 PMPM worldAMERICAS EUROPEnews ASIA MIDDLE EAST AFRICA Senators Call For Financial Crisis TSA To Miss 100 Percent Prosecutions Screening Deadline? .S. Senators Byron Dorgan and Maria UCantwell have asked U.S. Attorney Gen- eral Eric Holder to investigate and prosecute any criminal behavior relating to the global financial crisis. In their letter to the Attorney General the senators said, “More than $9 trillion has been committed, pledged or loaned in re- sponse to the ongoing financial and econom- ic crisis.
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