CoverINT 9/23/05 1:20 PM Page 1 WWW.AIRCARGOWORLD.COM OCTOBER 2005 INTERNATIONAL EDITION 2006 World Airports Directory Tracking Technology • Just-In-Time • United Kingdom Cov2_ACW 9/22/05 2:40 PM Page 1 So much received, for so much delivered. China Airlines is proud to receive Air Cargo World magazine’s 2005 Air Carrier International Award of Air Cargo Excellence — a voting result by worldwide freight forwarders who graded all carriers’ performance on 4 rating measures: Customer Service, Performance, Value, and Information Technology. With the world’s largest fleet of B747-400F freighters, “IATA Members’ Rankings” from the 7th largest in 2003 to the 5th largest in 2004, and continuous expansion in fleet and network, China Airlines, for sure, will meet your ongoing demands. 01TOCINT 9/23/05 1:43 PM Page 1 A Journal of Commerce Inc.Publication INTERNATIONAL EDITION October 2005 CONTENTS Volume 8, Number 8 REGIONS Airport 10 North America Directory Hurricane Katrina devastated 39 From Alabama to Yu- the U.S. Gulf Coast and put goslavia, the global guide to added pressure on airlines al- airport cargo services. ready suffering from fuel fatigue 14 Europe Air cargo players increasing- ly view Nottingham East Mid- lands as a viable alternative to the crowded London airports 16 Pacific China’s airlines are looking abroad as the nation’s interna- Tracking tional trade soars • Taiwan’s High-tech, up-to-the- Mainland Push 20 minute tracking is now an integrated part of air cargo. 27 Just- DEPARTMENTS in-Time 2 Edit Note 4 News Updates 73 Events United 74 BACK Aviation Kingdom Aircraft Report 30 The declining home mar- ket is anything but strawber- 76 People ries and cream, forcing Bri- 78 Bottom Line tain’s carriers to look abroad. 80 Forwarder’s Forum 34 Western Airports Cover photo courtesy Copenhagen WWW.aircargoworld.com International Airport Air Cargo World (ISSN 0745-5100) is published monthly by the Journal of Commerce Inc., a member of The Economist Group. Editorial and production offices are at 1270 National Press Building, Washington, DC, 20045. Telephone: (202) 661-3387. Air Cargo World is a registered trademark of the Journal of Commerce Inc. ©2001. 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 USA air mail/1 year $118; 2 year $212. Single copies $10. Express Delivery Guide, Carrier Guide, Freight Forwarder Directory and Airport Directory single copies $14.95 domestic; $21.95 overseas. Microfilm copies are available from University Microfilms, 300 North Zeeb Road, Ann Arbor, MI 48106. Opinions expressed by authors and contributors are not necessarily those of the editors or publisher. Articles may not be reproduced in whole or part without the express written permission of the publisher. Air Cargo World is not responsible for unsolicited manuscripts, photographs or artwork. Please enclose a self-addressed envelope to guarantee that materials will be returned. Authorization to photocopy items for internal or personal use is granted by Air Cargo World, provided the base fee of $3 per page is paid directly to Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, and provided the number of copies is fewer than 100. For authorization, contact CCC at (508) 750-8400. The Transactional Reporting Service fee code is: 0745-5100/96/$3.00. For those seeking 100 or more copies, please contact the magazine directly. POSTMASTER and subscriber services: Call or write to Air Cargo World, Customer Care Department, 400 Windsor Corporate Park, 50 Millstone Rd., Suite 200, East Windsor, NJ 08520-1415; telephone (888) 215-6084 October 2005 AirCargoWorld 1 02EditorialINT 9/23/05 10:20 AM Page 2 Editor’s Note International Trends & Analysis Editor Paul Page • [email protected] Managing Editor Aaron Karp • [email protected] Contributing Editors Roger Turney, Ian Putzger Mike Seemuth Art & Production Director Jay Sevidal • [email protected] Editorial Offices Fuel 1270 National Press Bldg., Washington, DC 20045 (202) 355-1170 • Fax: (202) 355-1171 e were surprised last month to hear the response from PUBLISHER one air cargo airline executive to the rising jet fuel prices Steve Prince • +01 (770) 642-9170 • [email protected] that are hitting air carriers around the globe. W U.S. Business and Advertising The airlines certainly are being affected, said this official, who will remain 1080 Holcomb Bridge Rd. • Roswell Summit Building 200, Suite 255 • Roswell, GA 30076 U.S. nameless, but they also are insulated from a true direct impact because fuel +01 (770) 642-9170 • Fax: +01 (770) 642-9982 surcharges largely are covering the increases. The real concern for this execu- Assistant to Publisher tive was the braking effect higher fuel and gasoline prices have on the broader Susan Addy • [email protected] International Advertising Offices world economy. Europe, United Kingdom, Middle East David Collison • +44 192-381-7731 Unfortunately, we don’t think the airlines are quite that insulated from the [email protected] Japan impact of jet fuel price increases. Masami Shimazaki • +81-3-5456-8230 [email protected] Yes, a slowdown in the world economy is a concern, but airlines listening to Thailand Chower Narula • +66-2-641-26938 their customers are finding that shippers and forwarders are feeling a very di- [email protected] Taiwan rect impact from the fuel surcharges that go along with rising Ye Chang • +886 2-2378-2471 [email protected] kerosene costs. Simply playing pass the bill isn’t working for Australia, New Zealand James Tonkin • +61-2-4385-1746 many shippers and forwarders telling us that they are seeking Sri Lanka Jaiza Razik • +94-133-3424 alternatives, in some cases through contracts but more signifi- [email protected] Korea cantly by changing shipping strategies, to the fuel surcharges. Mr. Jung-won Suh • +82-2-3275-5969 In some places, several forwarders have told us, surcharges [email protected] Classified Advertising and Reprints of various stripes add up to more than the listed tariff. Tamara Rodrigues • [email protected] For shorter distances, the alternative may be moving goods by +01 (770) 642-8036 Display Advertising truck, and U.S. forwarders say truckers are major competition for Traffic Coordinator traditional air freight. But shippers operating in today’s extend- Tracey Fiuza • [email protected] +01 (973) 848-7106 ed supply chains also are looking at alternatives, perhaps by splitting shipments Electronic Rights between sea and air and perhaps by pre-positioning more goods, choosing to eat and Syndication Barbara Ross • [email protected] the higher inventory carrying costs rather than face the higher transport costs. (973) 848-7186 And those transport costs are, indeed, a great deal higher. CUSTOMER SERVICE OR TO SUBSCRIBE: 888-215-6084 The airlines’ fuel bill this year will be $97 billion, according to the Interna- tional Air Transport Association, more than double what the carriers paid in 2003. Yet the airlines have reduced their fuel consumption in recent years. 400 Windsor Corporate Park 50 Millstone Rd., Suite 200 The impact has been particularly bleak in the United States, where four major East Windsor, NJ 08520-1415 passenger airlines were flying under bankruptcy protection last month and (609) 371-7700 • (800) 221-5488 U.S. airlines cumulatively are facing losses of some $8 billion this year. Chairman, President and CEO Alan Glass Senior Vice President, CFO Dana Price In its most recent quarter, FedEx Express said it paid $628 million for fuel, Senior Vice President, 49 percent, or $206 million, more than it paid in the same quarter last year. Strategy & Operations Betsy Sherer Vice President, Magazine Group Peter Tirschwell Passenger carriers may face a more immediate threat as price-sensitive trav- President, PIERS Brendan McCahill elers stay on the ground. But even in the freight industry, shippers will not Vice President, Directories Group Amy Middlebrook simply absorb such costs without responding. Vice President, Production & Manufacturing Meg Palladino Carriers such as FedEx that have a wide array of services across modes can claim Director of Circulation John Wengler some insulation from fuel prices because they can follow their shippers down the Director of Creative Services Laura Kaiser cost ladder to other modes. But the airlines that are simply passing the higher POSTMASTER: Send address change to: Air Cargo World, costs along may find they are less insulated from the impact than they think. 400 Windsor Corporate Park, 50 Millstone Road, Suite 200, East Windsor, NJ 08520-1415. © 2005 Commonwealth Business Media Inc. — All Rights Reserved For more information visit our website at www.aircargoworld.com 2 AirCargoWorld October 2005 003_ACW_Int 9/22/05 4:59 PM Page 1 YOUR CARGO GATEWAY TO SOUTHERN CALIFORNIA AND THE WORLD. < T o S a n F r a n c i s c o .Palmdale Airport > s a 5 g e V s a L o T LAX 53 MILES ONT 15 10 Txo P ho en 15 i > T o S a .Port of Los Angeles n D i eg .Port of Long Beach o Both ports combined handle more than 40% of all U.S. imports. > LAX: LA/ONTARIO: • Voted best cargo airport in U.S. • #13 largest cargo airport in North America • #3 largest cargo airport in North America • One million sq.ft. of new cargo facilities • $64 billion in international trade annually • 285 million sq.ft. of logistics space nearby • 100 airlines flying worldwide • Direct rail access to nation’s two largest ports For more information, contact: Mark Thorpe, Director of Air Service Marketing Los Angeles World Airports, P.O. Box 922166 310.215.7466 FX.
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