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March, 2011 Volume 14, Number 2 Contents MANAGING EDITOR Jon Ross [email protected] • (770) 642-8036

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March, 2011 Volume 14, Number 2 Contents MANAGING EDITOR Jon Ross Jon.Ross@Aircargoworld.Com • (770) 642-8036 INTERNATIONAL EDITION MARCH 2011 Turkey’s economic ascension Focus on shippers The GSSA advantage Security update March, 2011 Volume 14, Number 2 contents MANAGING EDITOR Jon Ross [email protected] • (770) 642-8036 SPECIAL CORRESPONDENT Martin Roebuck [email protected] +44.(0)20-865-70138 Turkey Istanbul fuels Turkey’s economic ascension CONTRIBUTING EDITORS 28 Roger Turney, Ian Putzger COLUMNIST Brandon Fried Shippers CONTRIBUTING PHOTOGRAPHER Shippers weigh benefits of air versus sea Rob Finlayson 38 PRODUCTION DIRECTOR Ed Calahan [email protected] GSSA Outsourcing cargo sales CIRCULATION MANAGER 46 Nicola Mitcham [email protected] ART DIRECTOR Security CENTRAL COMMUNICATIONS GROUP [email protected] 54 FIATA’s Jean-Claude Delen speaks out PUBLISHER Steve Prince [email protected] ASSISTANT TO PUBLISHER Susan Addy [email protected] • (770) 642-9170 DISPLAY ADVERTISING TRAFFIC COORDINATOR Linda Noga [email protected] WORLD NEWS AIR CARGO WORLD HEADQUARTERS 1080 Holcomb Bridge Rd., Roswell Summit 6 Europe Building 200, Suite 255, Roswell, GA 30076 (770) 642-9170 • Fax: (770) 642-9982 12 Middle East WORLDWIDE SALES U.S. Sales Japan 17 Asia Associate Publisher Masami Shimazaki Pam Latty [email protected]. (678) 775-3565 ne.jp 22 Americas [email protected] +81-42-372-2769 Europe, Thailand United Kingdom, Chower Narula Middle East [email protected] David Collison +66-2-641-26938 +44 192-381-7731 [email protected] Taiwan DEPARTMENTS Ye Chang Hong Kong, [email protected] Malaysia, +886 2-2378-2471 4 Editorial 56 People/Events 62 Forwarders’ Forum Singapore Joseph Yap Australia, +65-6-337-6996 New Zealand 5 Viewpoint 58 Classifieds [email protected] Fergus Maclagan [email protected] India +61-2-9460-4560 55 Bottom Line 61 Opinion Faredoon Kuka RMA Media Korea +91 22 6570 3081 Mr.?? Jung-Won Suh [email protected] +82-2785-8222 [email protected] Air Cargo World (ISSN 1933-1614) is published monthly by UBM Aviation. Editorial and production offices are at 3025 Highland Parkway Suite 200, Downers Grove, IL 60515; telephone 866-624-4457. Air Cargo World is a registered trademark of UBM Aviation©2011. Periodi- CUSTOMER SERVICE OR TO SUBSCRIBE: (866)624-4457 cals postage paid at Downers Grove, IL and at additional mailing offices. Subscription rates: 1 year, $80; 2 year $128; outside USA surface mail/1 year $120; 2 year $216. Single copies $20. Express Delivery Guide, Carrier Guide, Freight Forwarder Directory and Airport Direc tory single copies $14.95 domestic; $21.95 overseas. Microfilm copies are available from University Microfilms, 300 North Zeeb Road, Ann Arbor, MI 48106. Opinions expressed by authors and contributors are not necessarily those of the editors or publisher. Articles may not be reproduced in whole or part without the express written permission of the publisher. Air Cargo World is not responsible for unsolicited manuscripts, photographs or artwork. Please enclose a self-addressed envelope to guarantee that materials will be returned. Authorization to photocopy items for internal or personal use is granted by Air Cargo World, provided the base fee of $3 per page is paid POSTMASTER: Send address change to: directly to Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, and provided the number of copies is less than 100. For Air Cargo World 3025 Highland Pky Ste 200 authorization, contact CCC at (508) 750-8400. The Transactional Reporting Service fee code is: 0745-5100/96/$3.00. For those seeking Downers Grove, IL 60515 100 or more copies, please contact the magazine directly. Member of Audit Bureau of Circulations Ltd. For more information visit our website at POSTMASTER and subscriber services: Call or write to Air Cargo World, 3025 Highland Parkway Suite 200, Downers Grove, IL 60515; www.aircargoworld.com telephone 866-624-4457. ACW MARCH 2011 3 editorial Air cargo by the numbers umbers and air cargo go hand in hand. By now, almost every carri- er, airport and other organization has released its 2010 results, and statisticians have begun pouring through the heaps of data looking for some clue to where air cargo is heading in 2011. Knowing how this industry is so enamored with statistics, I thought you might enjoy looking at some numbers that have popped up in the news in the past few weeks. 20.6. IATA’s reported airfreight growth rate, in percent, for 2010. Air- freight exceeded pre-recession highs last year by 1 percent. It is still too early and too risky to say the industry is back to flying in blue skies, but visibility is Steve Prince clearly improving. Publisher €800 million. Total price of fines levied by the European Commission (EC) on 11 carriers for their alleged role in the price-fixing scandal. Will the string of punishments over the price-fixing scandal ever end? Who’s next in line to file for a piece of this fine pie? 10. Number of months the EC investigated the merger of Olympic Air and Aegean Airlines before deciding it would be monopolistic. Monopolistic is my choice of word because it sounds more Greek than anti-competitive. 17.05. The percentage of cargo tonnage growth in 2010 at Atlanta Harts- field-Jackson International Airport. Nice job ATL! OK, so I’m a bit of a “hom- er,” but hats off to them, they are cargo serious. The recent additions of Asiana Airlines and Cargoitalia should only help improve growth even more. 18.9. The percentage of cargo traffic growth year over year, according to the International Civil Aviation Organization. This is a very interesting statistic. For some reason, we always think in terms of tonnage and not traffic. 3,443. The total number of orders Boeing has on its books. It will be nice to see that number decrease when Cargolux receives the first 747-8 Freighter in a few months. 100. The expected number of AN12’s to be replaced by B737’s of the con- version kind for domestic use in Russia in the next few years. Ah-h, at last — from America, with love. 25. The percent increase in fleet size during the next four years recently announced by Lufthansa Cargo. That’s an impressive number! I’ll take a 25 percent increase anytime. These numbers can tell us much about the industry’s health, but the interpre- tation is strictly up to you. So, what’s in these numbers? You be the judge. 4 March 2011 ACW viewpoint Is 2011 the year for air cargo? ir cargo is expected to contribute to a second protected from tampering. The approach is based on the consecutive year of industry profits in 2011 premise that everyone in the supply chain should have a due to strong demand from emerging econo- responsibility for maintaining the security of air cargo. mies and export-led growth in the U.S. and Most important, it allows the flexibility for cargo to be Europe on the back of weaker currencies. screened at an appropriate point on its journey and then AThis is good news for an industry that has lost more transported securely. than $50 billion in the last decade. The harsh reality The Secure Freight program is based on this approach. is that these profits are nowhere near sustainable lev- Malaysia was the first country to implement Secure els. The $15.1 billion return recorded in 2010 Freight in November 2010. Egypt is expected will shrink to $9.1 billion in 2011. With that, to go live this year. At its December meeting, margins will also fall from 2.7 percent to 1.5 the IATA Board of Governors made Secure percent. We would need 7 to 8 percent growth Freight a priority, setting a target of two ad- just to cover the cost of capital. ditional country memberships by the end of Challenges ranging from inconsistent secu- 2011. rity regulations to low government adoption of 100 percent e-freight by 2015 e-business standards threaten the long-term Today, the e-freight network is in place. health of air cargo. In 2011, the International More than 40 countries are using paper-free Air Transport Association (IATA) will work air cargo, representing 80 percent of interna- hand-in-hand with freight forwarders, ground tional air cargo volumes. The next phase of handlers, shippers and government customs Des Vertannes the project will look at increasing e-freight vol- authorities to deliver a more secure, efficient, umes on the existing trade lanes. As of Decem- reliable and profitable supply chain. ber 2010, 2.8 percent of all shipments on these Security that makes sense trade lanes were e-freight shipments. In five years, IATA IATA is working closely with global security regulators and its industry partners hope to make that 100 percent, (the Transport Security Administration, the Department beginning with a 10 percent target this year. of Homeland Security, the European Commission and the In order to meet that target, the industry will focus on ICAO) to provide an industry perspective on this impor- securing government support for a favorable regulatory tant issue. environment and creating a taskforce to facilitate local Effective cargo security must be based on a combina- adoption. Maintaining active governance structures at a tion of three measures. IATA is advocating the use of global and local level to make sure e-freight continues to electronic data to help identify risk levels of cargo. One be industry-led and that e-freight solutions make sense of the e-freight message standards, the security decla- for everyone involved also is very important. ration, can be used by states to evaluate cargo passing New year, new partnership through their borders.
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