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THE SOURCE FOR AIRFREIGHT LOGISTICS International Edition • AirCargoWorld.com • March 2015 CENTER OF GRAVITY ARE THE BIG 3 GULF CARRIERS THE NEW HUB OF GLOBAL FREIGHT LOGISTICS? p.24 CARGO SECURITY: ARE WE SAFER NOW? p.30 HIGHWAY FEVER: AIRFREIGHT & TRUCKING p.36
Contents Volume 18 • Number 2 • March 2015 CENTER OF GRAVITY ARE THE BIG 3 GULF CARRIERS THE NEW HUB OF GLOBAL FREIGHT LOGISTICS? 24 News Inside: 6 UpFront Virtual reality tech at DHL, petal to the metal for EVER VIGILANT Valentine’s, drone-delivered tea in China and more 10 Asia A new era of bellyhold cargo begins at Taiwan’s EVA Air 14 Europe 30 Five years after Yemen, how pervasive are Who’s No. 1 in Euro-tonnage? Frankfurt or Paris? advanced cargo security systems? 18 Africa & Middle East HIGHWAY Kenya’s Astral Aviation prepares for a big year in perishables 20 Americas The latest expansions at Alaska’s Northern Air Cargo Departments FEVER HOW AIRFREIGHT 4 Editorial 8 Cargo Chat: Hugh Flynn AND TRUCKING ARE INCREASINGLY 36 22 People 40 Marketplace 42 Bottom Line WORKING TOGETHER 44 Guest Column: Doug Brittin 45 Events / Advertiser’s Index 46 Forwarders’ Forum Air Cargo World (USPS 364-590) (ISSN 1933-1614) is published monthly (except December and January are combined) and owned by Royal Media. Air Cargo World is located at 1080 Holcomb Bridge Rd., Suite 255, Roswell, GA 30076. Known office of publication is located at 80 Broad Street, Suite 1701, New York, NY 10004; telephone 212-564-8972. Air Cargo World is a registered trademark. Periodicals postage paid at New York, NY 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 Directory single copies $14.95 domestic; $21.95 overseas. 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 less 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. Member of Audit Bureau of Circulations Ltd. POSTMASTER: Send address changes to Air Cargo World, 80 Broad Street, Suite 1701, New York, NY 10004. ACW MARCH 2015 3
Editor’s Note Every link in the chain matters THE SOURCE FOR AIRFREIGHT LOGISTICS Have you seen the December issue of Inspire maga- SENIOR EDITOR David Harris zine? Let me save you the effort and urge you to avoid it dharris@royalmedia.com altogether. Although the title sounds like something out of EDITOR the Martha Stewart or Oprah Winfrey publishing empires, Randy Woods Inspire is actually the official magazine of Al Qaeda. rwoods@aircargoworld.com • (206)-801-8478 ASSOCIATE EDITOR In Issue #13, released in December 2014, the English- Linda Ball language propaganda screed focused on attacks on U.S. lball@aircargoworld.com • (206)-237-0799 airliners. One article included a “recipe” for building SPECIAL CORRESPONDENT Martin Roebuck detection-proof explosives, calling them “another meal CONTRIBUTING EDITORS prepared in the kitchen” that anyone can make. The arti- Randy Woods Roger Turney, Ian Putzger cles also discussed which seats would-be terrorists should COLUMNIST purchase and where to place bombs strategically to inflict the most possible damage. Brandon Fried Previous issues also provided tips on improvised bomb-making from common house- hold objects, such as using modified pressure-cookers – the same technique used by PUBLISHER the terrorists who struck at the 2013 Boston Marathon. JJ Hornblass hornblass@royalmedia.com In the years since the 9/11 attacks, terrorist activity has declined in the aviation VP OPERATIONS industry, thanks to increased security screening, better intelligence and closer surveil- Molly Stewart lance of known terrorist cells. But the Inspire magazine articles are a chilling remind- EDITORIAL DIRECTOR Phil Ryan er that active attempts are still being made to use the airfreight industry to carry out CREATIVE DIRECTOR monstrous acts of terror. According to the Transportation Security Administration, Alex Kwanten despite 13 years of ramped-up security warnings for passengers, a record-high 2,210 akwanten@royalmedia.com guns – 70 percent of which were loaded – were confiscated at security checkpoints ASSOCIATE DESIGNER across the United States in 2014. That’s a 20 percent spike over the 1,813 seized in 2013. Adnan Jusupovic Five years after the infamous 2010 Yemen bombing attempt involving the cargo CIRCULATION holds of two airliners, our industry is still absorbing the shock waves of that wake circulation@royalmedia.com up call. As we see in our security feature article on page 30, not a lot has changed AIR CARGO WORLD HEADQUARTERS technologically in the airfreight industry since 2010, but the awareness of the threat 1080 Holcomb Bridge Rd., Roswell Summit Building 200, Suite 255, Roswell, GA 30076 has moved security to the top of everyone’s priority lists, from the shippers to the for- (770) 642-9170 • Fax: (770) 642-9982 warders to the ground handlers and airlines. When it comes to preventing terrorism, WORLDWIDE SALES we’re only as strong as the weakest link in the supply chain. U.S. Sales & Emerging Markets Sales Director Connections that have developed in recent years between forwarders and carriers Tim Lord tlord@aircargoworld.com • +1 678 775-3565 have brought other rapid changes to the airfreight industry, notably the gradual shift Europe, United Kingdom, Middle East of logistics power away from Europe and North America and toward the Persian Gulf David Collison region. In our cover story (page 24), we look at how the “Big 3” Gulf carriers – Emir- dci.collison@btinternet.com • +44 192-381-7731 ates, Qatar Airways and Etihad – have grown their market share to such a point that Hong Kong, Malaysia, Singapore their business decisions are having ripple effects throughout the industry. The recent Joseph Yap jospeh@asianimedia.com • +65 6-337-6996 switch to “all-in” pricing and the removal of fuel surcharges, led by Emirates and Qa- India tar, is just the latest example of their rising influence. Faredoon Kuka RMA Media kuka@rmamedia.com • +91 22 6570 3081 We also take a deeper look into the increasingly intertwined relationship between Japan air carriers and trucking companies (page 36). As road feeder services become more Mr. Mikio Tsuchiya popular and economical for freight shippers, we discuss how transportation compa- mikio.tsuchiya@worldmedia.jp • +81 45-891-1852 nies around the world have merged their logistics systems to accommodate the differ- Korea Mr. Jung-Won Suh ences between surface and air modes – some more successfully than others. sinsegi@igroupnet.co.kr • +82 2785-8222 As these articles demonstrate, we in the airfreight logistics business may play Taiwan different roles, but we are all connected more closely than we may imagine. We at Air Ms. Paula Liu paulaliu99@gmail.com • +886 2-2523-8268 Cargo World want to maintain that connection with our readers as well. Please write Thailand in, let us know how we’re doing and share your stories with us. Ms. Anchana Nararidh anchana@worldmedia.co.th • +66 26-412-6938 Marketplace Randy Woods, Alyssa Stebbins astebbins@royalmedia.com • +1 212 991-6735 Editor, Air Cargo World rwoods@aircargoworld.com Special photo credits: Emirates A300-600 (p26): ©Aero Icarus/Flickr, Etihad 777-300ER (p26): ©Steve Walsh 4 MARCH 2015 ACW
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UpFront Century mark for 777F Photo: ©Alex Kwanten On January 15, China Southern Airlines took delivery of the ninth of twelve 777 freighters it has on order with Boeing – the 100th delivery of a 777F. Boeing delivered the first 777F to launch customer Air France in February Valentine’s Day 2009, and has since deliv- ered 99 more to 11 carriers keeps UPS busy and five lessors. Boeing says it has 44 outstanding orders for 777Fs. Love is a big business. To get flowers, sweets and gifts to consumers by February 14, Cupid needed help from global Mangoes anyone? logistics networks. UPS said it This past December, shipped more than 110 million LAN Cargo set a flowers, or 10 million pounds, new monthly record to florists around the United for the transportation States in the weeks leading up of mangoes from Peru to to this Valentine’s Day. Many Europe, shipping 525 tons of the of the flowers came from Latin tropical fruit using two 767 freighters. The American countries, with more mangoes were flown from Lima to São Paulo, than 90 percent of the imported where operations teams at Guarulhos ensured that flowers traveling through Miami. the cold chain was maintained before onward ship- UPS arranged for 40 additional ment to Europe. LAN is responsible for transport- ing approximately 35 percent of Peruvian mangoes flights to make sure they came out smelling like a rose. to Europe. Expect tropical salads to be a big hit this year in Parisienne cafés. DHL’s vision of the future Glasses tend to make people Lifting lions look smarter. Logistics firm Photo: Alibaba/Taobao DHL wanted to find out if Two rescued lionesses trav- wearing high-tech “smart eled from Belgium to their glasses” could make their staff new home in South Africa by work smarter as well. In a pilot way of Heathrow on January test the company recently 20. The big cats, named Mag- completed in the Netherlands, gie and Sonja, made history DHL asked 10 of its warehouse by becoming the first lions to staff to use various forms of travel by Eurostar rail, before “augmented reality” gear, boarding the inaugural Kenya such as Google Glass and Airways 787 Dreamliner flight VuzixM100, to guide them to Johannesburg via Nairobi. through the warehouse and Some drones with your tea? After landing in Johannesburg Jan. 21, Maggie and Sonja were identify items to be pulled – a method called “vision picking.” While Amazon’s Jeff Bezos continues to fight the taken by road to their new The results? By the end of the FAA over his plan to launch an air force of deliv- home at the award-winning three-week trial, the staff ery drones, his chief rivals in China began test- Shamwari Game Reserve in reduced errors and boosted ing the concept last month with five quadcopter Port Elizabeth, South Africa. efficiency by 25 percent. drones, fitted to deliver ginger tea packages to 450 selected customers of Taobao.com, an online retail site operated by e-commerce giant, Alibaba. For a charge of 49-renminbi (US$7.84), custom- ers were allowed to order within a 6.2-mile radius of the three cities taking part: Beijing, Shanghai and Guangzhou. Could this be the future of “last mile” delivery? Maggie the Lioness. 6 MARCH 2015 ACW
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CargoChat ASL’s Hugh Flynn on the Farnair purchase Late last year, Ireland-based ASL Aviation Group purchased the Farnair Group of companies. Before the purchase, ASL already owned European carriers Air Contractors and Europe Airpost; had partial ownership of South Africa-based Safair; and had ownership of supplier ACLAS Global, and MRO ACLAS Technics. With the addition of Farnair, ASL now has some level of control over four other airlines: Farnair Switzerland, Farnair Hungary, Quikjet India, and K-Mile Air (45 percent). All of these companies are now overseen by Hugh Flynn, CEO of ASL. After graduating from a South African military academy in 1972, Flynn became an assistant transport procurement buyer for AECI Chemi- cals and Technology before securing a role as marketing manager for a transport company called Tanker Services. Later, he served in various aviation roles at Safair and Hunting Cargo Airlines before the ASL Aviation Group was officially formed in 2008, following the acquisition of several companies. Air Cargo World caught up with Flynn to see how all of these new moving parts are fitting together at ASL. What was the main reason ASL Aviation Group Will the acquisition of Farnair have an impact on the purchased Farnair? operation of your existing carriers? Farnair’s business is very similar to the core activities of the We are already seeing a very positive impact, with comple- ASL Aviation Group, making it a perfect fit for us. We have mentary capabilities providing an opportunity to develop now combined the reach, assets and strengths of ASL and synergies throughout the ASL Group’s operations, enabling Farnair as we work to position ourselves as a competitive us to build and focus on centers of excellence. leader in the industry. How do your cargo services and passenger businesses With Farnair, ASL has gained greater access to cargo work together? markets in South Asia. What is your strategy for Asia Our passenger business is an excellent match for our core in general? business. We largely use the same type of aircraft – variants As Asian markets expand, so our customers also expand of the Boeing 737 – and we apply the capabilities in our cen- their services, and we build our capability to meet the ters of excellence that are common to the operations, such requirements of the major integrators as they grow their as flight operations, technical and maintenance. Asian business. This includes providing a platform that is As part of your fleet renewal strategy, you have said equipped with aircraft, [air operator certificates], traffic you plan to convert Europe Airpost’s six 737-300QCs rights and bilateral agreements. into freighters. Why? Most of the airlines under Farnair operate for other This is more of an aging aircraft program than anything else. carriers. Do ASL’s carriers offer any scheduled or We have converted two QCs into pure freighters, mainly charter service of their own? because those particular aircraft were getting older. At the At the moment we operate both scheduled and charter same, time we have brought 737-700 Next Generation air- and ACMI passenger flights in Europe, South Africa and craft into the fleet. on trans-Atlantic routes. We would look at opportunities How has the drop in oil prices affected ASL’s operations? to introduce scheduled cargo operations, but only if they Any drop in oil prices is good for the economy generally, for complemented our operations and would not impinge on business and of course for the aviation industry. However, at our core business. this time we consider that the current price fall may only be a short- to medium-term occurrence. Photo: Aero Icarus/Flickr Now that the Farnair acquisition is completed, what are the greatest challenges that ASL Group faces? The significant challenges are those facing the aviation in- dustry generally, including the status of the eurozone and the value of the euro against the United States dollar and other major international currencies. Heavy regulation is also an issue, particularly in Western Europe, where a more light-touch approach to regulation would increase stability and promote growth. What is your economic outlook for the airfreight industry in 2015 and beyond? ASL Group’s holdings include Air Contractors, Europe Airpost, and I think the outlook is very different for different parts of Farnair. In the case of the latter two carriers, both fly a single type – the world. Europe, unfortunately, will probably be flat for a variants of the 737, with the associated benefits of reduced cost and while, and that is why we are looking beyond the continent complexity. Europe Airpost has 737NGs in its fleet for passenger to other accessible regions that will see growth, such as operations, though this may presage cargo use. Asia, Africa and the sub-continent. ACW 8 MARCH 2015 ACW
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Around the world ASIA EVA Air’s final 747-400M, registered B-16409, departs from Taipei in 2009. The aircraft was retired to San Bernadino on January 26, 2015. Photo: © Michael Rehfeldt A New Era for EVA By Ian Putzger J anuary 5 was a small watershed for Clearly, maindeck capacity is going to cargo accounted for 28.9 percent of EVA Air. It was also a day that could play a lesser role in the Taiwanese car- total revenues. Tonnage was down 4.1 have meaningful implications on rier’s strategy. But the question many percent from the year before, but load how forwarders schedule cargo in shippers and forwarders would like to factors rose from 82.64 percent in 2013 the region. ask is: Will this reduce the role of cargo to 85.07 percent and the yield was up The 747-400 used for flight BR868, in EVA’s overall strategy? 2.6 percent. which landed in Taipei that day, sub- “The global cargo market landscape “Our cargo business improved sig- sequently exited EVA’s fleet, marking has evolved over the last five years nificantly in 2014, thanks to falling oil the demise of combi aircraft from the due to a number of factors,” Chai said. prices and greater trade demand. Our lineup. Its retirement leaves Asiana the “More goods are transported intermod- profits increased in Q4 2014,” Chai re- lone operator of 747 combis in Asia. ally. Bellyhold capacities have grown. marked. The 747 is also on the wane in EVA’s Electronic products have become One target area is the e-commerce freighter lineup – now down from ten smaller and smaller. And demand for sector, which offers opportunities for to eight units – although the MD-11Fs the kind of capacity provided by full- express traffic solutions. EVA is beefing are heading for the exit faster. cargo freighters has fallen. We accom- up its sales force to get a larger piece of modated these trends by adjusting our this pie. “We will gradually take some MD- freighter fleet and long-term plans.” 11 freighters out of service over the Temperature-controlled moves are course of this year but that won’t have Rather than chase volumes, the focus another key focus. To that end, EVA a significant effect on our freighter net- at EVA appears to be shifting to ramp- is initiating a master lease agreement work or schedule. We will accommo- ing up load factors and targeting pre- with Envirotainer, Chai revealed. “With date our air cargo customers’ consis- mium traffic more than before. this infrastructure in place, we will tent space needs by making full use of Indeed, the carrier’s monthly statis- launch cold chain services to major bellyholds on our passenger aircraft,” tics show cargo revenues of US$987.3 cities worldwide, including Amster- said Glenn Chai, executive vice presi- million for last year, comprising 26.7 dam, London and Paris in Europe, Los dent, corporate planning division. percent of overall revenues. In 2013 Angeles, San Francisco and Chicago in the USA, and Taipei, Singapore and Bangkok in Asia,” he said. “We expect More goods are transported intermodally. Bellyhold to commence our cold-chain initiative around mid-2015.” capacities have grown. Electronic products have become The mix of longhaul and intra-re- gional traffic is not likely to change this year, he indicated. The latter accounts smaller and smaller ... We accommodated these trends for about 37 percent of EVA’s overall tonnage. by adjusting our freighter fleet and long-term plans. However, Chai is decidedly more bullish on the trans-Pacific market than the intra-Asian arena. “We expect cargo —Glenn Chai, executive vice president, corporate planning, EVA Air Continued on page 12 10 MARCH 2015 ACW
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AsiaNews Continued from page 10 volume to and from the USA to remain strong but intra-Asia demand appears Japan charters rise with port crisis, air bag recall to have less momentum because Chi- A recent recall of automobile na’s economy is not as robust as it was, air bags, paired with the ongoing and Japan has not regained strength,” West Coast port crisis in the United he added. States, has provided another boon EVA’s belly lift to the U.S. market is to airfreight charter flights from set to go up in June with the launch of Japan, much like what happened to Subaru has turned to a signficant amount 777-300ER service to Houston. On the eastbound traffic from Asia to North of charter work to keep production run- sectors to Vancouver, Toronto and Se- America during peak season. ning at its U.S. factory in Indiana. attle, the carrier said it intends to step Air bags made by Takata Corp., a shore and Warehouse Union (ILWU) up its frequencies this year. Next year, major Tokyo-based auto part supplier, labor dispute and the air bag recalls. EVA plans to start passenger flights which were installed in automobiles Japan Airlines, Atlas Air, All Nippon to Chicago. from model year 2002 to 2008, could Airways and Kalitta Air are all reaping For EVA management, the 777-300ER deploy explosively, and are being the benefits. certainly is the type to embrace. So far recalled in as many as 18 million ve- Business Insider Australia reported it has brought 18 into its fleet, replac- hicles. that the chief labor negotiator for ing most of the 747-400 contingent, The problem is getting new air bags the terminal operators warned that which is now down to three aircraft in to the U.S. from Japan. A nine-month the West Coast ports were days away passenger configuration. EVA has four labor dispute has left U.S. West Coast from complete gridlock in the first more 777s on order, and has also been ports with weeks-long backlogs, and week of February. Union officials, in talking with Boeing about the 777X, Japanese automakers now have limit- turn, played down the potential for signaling further interest in the 777 ed options, so they have begun work- shutdowns, suggesting management series. ing with forwarders to ship the parts was exaggerating the situation as a The 777s bring ample belly capac- by air. Fuji Heavy Industries Ltd., negotiation tactic. ity into the fleet as its maindeck space which makes Subaru cars, said in Feb- But the airbags and other auto parts continues to shrink. Last year the ruary that it had moved to chartered have got to move. Six people in the reductions in its all-cargo fleet led to cargo flights to avoid U.S. production U.S. to date have been killed by ex- the suspension of freighter service to from coming to a halt. ploding Takata air bags, and 10 differ- Tokyo and New York. About 42 airfreight charters from ent automakers have recalled vehicles Japan to the U.S. were booked in with the Takata air bags that are on February due to the port congestion either the driver’s or passenger’s side caused by the International Long- of the vehicle. –Linda Ball Photo: ©Alex Kwanten Cathay Pacific Cargo Terminal has busy first year n its first full year handling cargo, three hours for passenger flights and The capacious hold of the 777-300ER has Cathay Pacific Services Limited five hours for freighters. In addition, largely eliminated the need for the 747-400 (CPSL) reported that the new Ca- airlines can make transshipment con- combi, and only KLM now operates that type. thay Pacific Cargo Terminal (CPCT), nections at CPCT, within five hours, or at Hong Kong International Airport, three hours with prior arrangement. At this point it is still unclear what handled 1.45 million tonnes of cargo. the carrier’s future freighter lineup The HK$5.9 billion CPCT opened in On Nov. 8, 2014, the terminal set its February 2013 and was designed and will look like when the 747 and MD-11 highest daily tonnage record of 5,476 constructed by CPSL, a subsidiary of cargo planes are all gone. Senior execu- tonnes of cargo processed. CPCT’s traf- Cathay Pacific Airways, which also tives have indicated over the past year fic was 54 percent transshipment. The operates the facility under a 20-year that the 777F as the likely future main- percentages of import and export cargo lease agreement with HKIA. The new stay of the freighter fleet. How many? tonnes throughout were 15 percent terminal has an annual air cargo capac- No announcement has been made, but and 31 percent, respectively. ity of 2.6 million tonnes. CPSL started a ten-unit fleet has been hinted at – which would be down from 15 freight- “2014 was Cathay Pacific Cargo providing ramp-handling service for ers two years ago. Terminal’s first full-year of operations. freighters since July 2014. With concerted efforts by our dedicat- CPSL currently serves seven customer Chai labels the 777F “definitely a ed team, we were able to achieve the contender to replace existing freight- airlines, including AirAsia, Air Hong Kong, highest level of service performance Cathay Pacific Airways, Dragonair ers” but added that management is still that we promised our customers from evaluating its aircraft options and has (a Cathay subsidiary), EVA Airways, the beginning,” said CPSL chief execu- Royal Brunei Airlines and Thai AirAsia. not made a final decision. ACW tive officer Kelvin Ko. CPSL employs more than 1,800 people At CPCT, consignees can collect to support the round-the-clock opera- inbound cargo after its arrival within tions at the terminal. –Linda Ball 12 MARCH 2015 ACW
Around the world EUROPE Frankfurt top dog again? Well, maybe. By Roger Turney E urope’s top cargo airport? Well, imposed on the airport, literally almost As far as cargo is concerned, Fraport surely that would be Frankfurt. Or overnight. Take-offs and landings were has set itself the daunting task of hit- maybe Paris? banned between the hours of 11 p.m. ting the 3 million tonne mark by the It’s a good question, because and 5 a.m. The ban affected 17 night- end of 2020. Given that last year’s 2.2 through last year both gateways were time cargo flights, of which about 11 million tonnes represented an incre- trumpeting the fact that their cargo were operated by Lufthansa Cargo. ment of only 1.7 percent; that is quite figures for 2013 clearly showed they The German carrier argued, in vain, a challenge. were each the busiest cargo gateways that the ban would cost it US $45 mil- But Frankfurt is definitely, and per- in Europe. lion a year. It threatened to move its haps defiantly, on the move. Much of On paper, at least, Frankfurt ap- operations to another German airport, the airport’s cargo handing operations peared to be the underdog with 2.1 or even (mein Gott) another Euro have shifted to the south. It is here, on million tonnes of cargo handled, while hub, outside of Germany. what was an area largely covered by Paris, combining the figures of Charles Three years later and, remark- the former U.S. Air Force base, that de Gaulle and Orly airports, came in at ably, Lufthansa Cargo is still fully Frankfurt’s cargo future is being built. 2.18 million tonnes. entrenched at Frankfurt and even That has manifested itself most re- Game over? Well, not quite. Both committed to building a new cargo cently with the decision by Fraport to figures contained airmail traffic, which terminal. It appears to have accommo- finally move ahead with a major put the French in front. But in terms dated the imposition of the night flight expansion of what is termed CargoCity of pure cargo traffic, it was apparently ban and even managed to provide for South. A 27-hectare site has been Frankfurt that won the day. So, yes both the dispersal of five new 777Fs into its cleared, and bids called in to develop were able to claim victory – of a kind. constrained schedules. the first phase, which will cover about Now, it seems, they are going to be As a reward for quieter nights half of the site area. Would-be bidders sniping at one another again. Frankfurt, around the neighborhood, Frankfurt are expected to include a mix of air- confident of gaining overall supremacy, did at least gain the concession of an lines, handlers and express operators. has reported figures for 2014 of 2.2 extra runway, opening just a day after The first tenants are projected to move million tonnes. But wait, those Frenchies the nighttime ban came in. But the is- in around mid-2017. are at it again. Curiously, posting its sue of nighttime operations continues Off the airport and adjacent to the results a month later than its German to stalk the airport. Calls have been airport’s newest runway, Fraport has rival, Paris says its 2014 total was made for the ban to be extended to a further 110-hectare area for devel- 2,201,726 tonnes, thereby just shading what are described as the “shoulder opment at its disposal. Known as the its Teutonic neighbors … again. hours” – one hour on either side of the Monchof Logistics Park, this project is No doubt, the caveat of who handled current curfew. already being implemented, with the the more pure cargo will once again be The issue is due to be resolved aim of providing logistics companies played to Frankfurt’s benefit. in time for the start of the summer and other airport-related businesses the But it is the German cargo hub schedule. The likelihood is that some opportunity to acquire plots of between that appears to have regained its kind of runway rotation could be intro- 5,000 and 100,000 square meters. self-confidence and self-belief. That duced, but airport owner and operator So far, more than 400,000 square confidence took a serious knock three Fraport argues that this will be difficult meters has been allocated, with the years ago when a night flight ban was to implement. goal of full site occupation by 2019. 14 MARCH 2015 ACW
EuropeNews Typically, DHL Express Germany and Expeditors International are among the early tenants. Swiss WorldCargo, Cargologic, Photo: ©Alex Kwanten Fraport, though, is also a major cargo operator in its own right. Fraport SATS form partnership T Cargo Services (FCS) is the largest in- hree powerhouses of airfreight and dependent cargo handler at the airport, airport services have joined to- responsible for moving over 450,000 Lufthansa Cargo not only dealt with gether to improve their cool-chain tonnes a year through its terminals, Frankfurt’s night ban, it added capacity handling abilities. Oliver Evans, Swiss reflecting a 22 percent market share. with 777Fs and is looking to build a new World Cargo’s chief cargo officer; Those figures will be given a signifi- cargo terminal at the airport. Marco Gredig, managing director cant boost with the recent news that of Cargologic; and Alex Hungate, the company has won over the con- and promote the gateway, while at the president and CEO of SATS, signed a tract from a rival operator to handle same time aiming to improve its work- memorandum of understanding Jan. the cargo business of China Southern ing processes. Initially, 15 companies 13, outlining the collaboration. Cargo. Operating five weekly 777F signed up for membership, among The three said they will focus on flights between Frankfurt and Guang- them Lufthansa Cargo. value-added services and improving zhou, and six to Shanghai, plus ad- Frankfurt has the advantage over performance at their facilities. They ditional passenger services to Guang- its French rival of being at the heart of have agreed to foster good distribu- zhou, the airline is expected to gener- Europe’s manufacturing base. But it is tion practices (GDP) at Cargologic’s ate annual volumes of 70,000 tonnes a noted curiosity that while 90 percent certified cool-chain facilities and SATS’ moving through FCS facilities. of all French airfreight flies via the two facilities across Asia to promote phar- But Fraport is by no means going it Paris airports, Frankfurt only attracts maceutical and other temperature-sen- alone in plotting Frankfurt’s long-term around 48 percent of all German air- sitive airfreight for Swiss World Cargo. future as Europe’s leading air cargo freight traffic. Specialized handling solutions will be hub. Early last year, a new association, For the time being then, Frankfurt implemented to ensure improved care Air Cargo Community Frankfurt, was and Paris will, presumably, continue of valuable freight for Swiss. created with the intent of providing to argue over the top-dog spot in Eu- With this new alliance, the trio will representation for all the major cargo rope… It must be one of them. ACW share knowledge and best practices players on the airport to help develop Continued on page 16 To understand how the Maastricht Airport’s cargo product can give your supply chain a competitive edge in Europe, please contact Mr. Wiel Dohmen, Cargo Development Manager at +31-43-358-9999 or by email: w.dohmen@maa.nl ACW MARCH 2015 15
EuropeNews Continued from page 15 Photo: ©Alex Kwanten in IT, facility development, joint train- ing, staff/management enrichment and joint innovation workshops. Cargologic is a specialist in airfreight handling and has been a contractor to airlines and forwarding companies for more than 50 years. It operates in Zurich, Basel, Bern and Lugano in Switzerland, with a presence in Am- sterdam and Brussels through its sister company, Skylink. In business for over 60 years, Sin- gapore-based SATS provides gateway and food services in 42 airports and 12 countries in Asia and the Middle East. AirBridgeCargo completes record year In its tenth year of doing business, er, ABC’s fleet now stands at thirteen Swiss World Cargo, the airfreight AirBridgeCargo (ABC), the sched- 747 freighters, which includes six -8Fs. division of Swiss International Air uled-service subsidiary of the Volga- ABC also added new routes to Dal- Lines, with its headquarters in Zurich, Dnepr Group, carried a record 401,000 las/Ft. Worth, Leipzig, Munich, Basel offers logistics services to approxi- tonnes of cargo in 2014, which is a and Malmo, while adding frequencies mately 120 destinations in over 80 17.6 percent increase over 2013. to Chicago, Milan, Amsterdam, Hong countries. Part of the Lufthansa Group, it is supplemented by daily truck con- Investing in improvements at its Kong, Shanghai, Tokyo and Seoul. ABC nections between key business centers main hub in Moscow, and reacting offers 218 scheduled freighter flights in Europe. quickly to market changes, ABC aver- a week to 11 countries and more than –Linda Ball aged a load factor of 72.6 percent, 400 connections, with a delivery time which is above the industry standard. within 48 hours on most of its origin- By adding an additional 747-8 freight- destination pairs via the Moscow hub. “Thanks to this growing support, ABC has been able to grow consistent- ly with a compound growth rate of 11 percent over the last five years,” said Denis Ilin, ABC’s executive president. He said the company aims to further increase its network with additional destinations to support smaller, niche or even short-term project business opportunities. “The geographic location of our hub in Moscow positions us perfectly to introduce services to literally any point in Europe and beyond. The global market will remain challenging in 2015 but I look forward with confidence that we will keep pace with the demand and opportunities that exist for us,” Ilin added. AirBridgeCargo also added Helsinki, Finland, to its international network, with twice-weekly 747F service. The flights will operate from Moscow’s Sheremetyevo Airport to Helsinki, re- turning to Moscow via Frankfurt. The new service offers 48-hour connec- tion opportunities for ABC’s custom- ers between Asia and Helsinki. In the past five years, ABC has been one of the world’s fastest growing interna- tional cargo, airlines with a compound growth rate of 11 percent. –Linda Ball 16 MARCH 2015 ACW
EuropeNews Nordic countries quickly reach e-AWB milestone Qatar’s new Pharma Express In just five months, Scandinavia’s Qatar Airways Cargo is introducing Photo: ©Alex Kwanten air freight sector collectively hit a new service this month, dubbed the IATA’s global 22 percent target for “Pharma Express,” that will expedite adoption of electronic air waybill pharmaceutical cargo from Brussels (e-AWB) technology in their cargo and Basel to Qatar’s network via the operations. Alexander Kohnen, Luf- carrier’s Doha hub. thansa Cargo’s director for Nordic and The two European cities are estab- Baltic countries, made the announce- lished pharmaceutical manufacturing ment during his opening remarks at centers, with Brussels Airport becom- the Nordic Air Cargo Symposium in ing the world’s first to be certified by Stockholm last month. the Center of Excellence for Indepen- Nine IATA member airlines – SAS 22 percent. The industry total was dent Validators (CEIV Pharma) last Cargo, Lufthansa Cargo, Air France/ 23.4 percent for December 2014, year. Brussels and the surrounding KLM, Finnair, Korean Air, Cathay which was 2.3 percent more, month area is home to 146 life sciences and pacific, Qatar Airways and Emirates over month. biotechnology companies. – have taken the lead in the Nordic Implementing electronic airway Pharma Express will be serviced by market to implement the e-AWB for bills involves the World Customs Or- A330Fs. In January 2014, Qatar Air- their air freight shipment. IATA’s vi- ganization (WCO), ground handlers, ways Cargo launched QR Pharma – an sion is to see its members go 100 per- freight forwarders and airlines. The airfreight service for pharmaceutical cent paperless by the end of 2017. implementation is performed locally and healthcare products. QR Pharma At the close of 2014, global e-AWB in each country, and the nine lead air- offers temperature-controlled contain- adoption stood at 24.9 percent. lines have agreed to a single process ers, designed to maintain a constant Denmark scored 23 percent, Finland for the forwarders to deliver cargo to temperature throughout the entire 25 percent, Sweden 15 percent and the cargo terminals and ground han- transportation chain, keeping the Norway at 7 percent, which exceeded dlers. This process completely elimi- product within a defined temperature those countries’ combined goal of nates the need for paper. –Linda Ball band at all stages of the journey. –Linda Ball we turn cargo into an art form © PMCE DESIGN adpcargo@adp.fr aeroportsdeparis.fr ACW MARCH 2015 17
Around the worldAFRICA &MIDDLE EAST Kenya’s Astral Aviation to increase intra-Africa service By Randy Woods L ater this month, the fifth general ing equipment into Tanzania, and gas Jomo Kenyatta International Airport to election will be held in Nigeria since equipment into Mozambique,” he said. London Stansted on an ACMI-leased, the official end of military rule in The only downside to 2014, Gadhia Atlas-operated 747-400F. Last year, the 1999. For Kenyan cargo airline said, was an embargo on relief flights carrier also acquired a 5-tonne-capaci- Astral Aviation, the scheduled March from Kenya into the Ebola-stricken ty Fokker 27, which complimented As- 28 vote will be good news, not only for countries of Sierra Leone, Guinea and tral’s fleet of DC-9 and 727 freighters. democracy in Africa, but also for the Liberia in West Africa, which arose out Plans are also being made to acquire expected rise in charter shipments of of regulatory restrictions. Now that the a second 747-400F in the first quarter election materials to Nigeria. reports of Ebola cases appear to be on of 2015 to keep up with demand for According to Astral’s CEO Sanjeev the decline, he said he hopes to be able increased intra-Africa service, Gadhia Gadhia, such connections between to resume flights to the region later said. New markets being considered Kenya and other African nations via this year. for scheduled service include Angola, African-owned carriers are a welcome In general, Gadhia said, oil, gas and South Africa, Democratic Republic of development in a region that has been mining equipment – mostly shipped to the Congo, Zambia, the Congo Repub- dominated by larger European and Nigeria and Angola – are the carrier’s lic and Zimbabwe, “which will be done Asian airlines. “African countries have highest-yield businesses, but those cautiously,” he added. started to trade more with each other shipments are being threatened by the Despite this optimism for 2015, than before, resulting in an increase of dramatic drop in oil prices in the last Gadhia says there are many obstacles intra-African logistics,” he said. nine months. The rise in the election- facing African cargo carriers, such as Now entering its 15th year of opera- materials charters to Nigeria this the lack of airport and cargo infra- tion, Astral uplifts various types of month, he said, will help make up for structure in certain airports in Africa. cargo, including oil and gas equipment, the expected lower volume of oil and Inadequate facilities lead to “higher op- telecommunication equipment, aid gas exploration equipment shipments. erating costs, hence there is a need of and relief supplies, mining equipment, Another sector of business that is greater foreign and local investment to and medicines and vaccines. Last year, expected to fill the gaps left by oil and upgrade or install modern equipment,” Astral experienced higher demand gas at Astral is the perishables market he explained. for intra-African scheduled service on from East Africa to Europe. “This year, Also, the current patchwork of over- routes to destinations such as Juba in we expect to see an increase in perish- lapping airfreight regulations imposed South Sudan, Pemba in Mozambique, able exports into Europe and an in- by the many countries has created a Mwanza and Zanzibar in Tanzania, and crease in intra-African transit cargoes regulatory framework in which “certain Mogadishu in Somalia. “There was also from our Nairobi hub,” Gadhia said. countries are over-regulated while oth- a significant increase in aid and relief ers are under-regulated.” As a result, cargoes into South Sudan and Central The all-cargo carrier currently of- fers twice-weekly flights from Nairobi’s African governments have tended to African Republic, in addition to min- favor foreign carriers by granting fifth freedom rights. Today, about 90 percent of the African air cargo market is now This year, we expect to see an increase in perishable dominated by these foreign carriers. On a positive note, Gadhia added, exports into Europe and an increase in intra-African trade blocks in Africa are becoming stronger. “The possibility of a single transit cargoes from our Nairobi hub. trade block in Africa will soon be a reality, which will encourage lower tariffs, greater trade and movement of —Sanjeev Gadhia, CEO, Astral Aviation cargoes within Africa.” ACW 18 MARCH 2015 ACW
Africa & MiddleEastNews Two Djibouti airports planned, with Chinese funding Airlink responds to flooding The tiny African nation of Djibouti for the Airbus 380. The second airport, Airlink, a humanitarian response measures just 23,200 square kilometers to be named Ahmed Dini Ahmed Inter- organization, and its partner airlines, and is home to only about 800,000 peo- national Airport, after one of the nation’s have responded to a severe flooding ple, but within a few years – and a little former prime ministers, is expected to crisis in Malawi, caused by above help from the Chinese – it expects to open in 2016, to the north of Djibouti average rainfall in January. Airlink have two brand-new airport hubs large and will have an annual capacity of brings pre-qualifed nonprofits to- enough to handle 100,000 tonnes of roughly 767,000 passengers per year. gether with airlines. cargo and 2 million passengers annually. With the help of funding from China The situation is dire, with 1.15 mil- Located in the Horn of Africa, where Civil Engineering Construction Corpora- lion people affected by the flooding the Red Sea meets the Gulf of Aden, Dji- tion, the Djibouti government said the and 336,000 of them displaced. It’s bouti is vying for a piece of the lucrative cost to build both airports is estimated been reported that 176 people have long-haul international air traffic that to be nearly US$600 million, as part of a died and hundreds more are unac- has been increasing across East Africa larger US$5 billion investment in indus- counted for. Crops have been de- and the Middle East in the last decade. trial and seaport infrastructure. stroyed and poor sanitation systems At a January dedication ceremony in the Other projects in the master plan in- have been washed away. town of Ali-Sabieh, the nation’s Presi- clude a direct rail link to Addis Ababa in All Hands, a 501(c)3, has already dent, Ismaïl Omar Guelleh, kicked off neighboring Ethiopia, a petroleum and deployed six relief workers into the construction of the first of the two hubs, liquefied-natural-gas terminal, to open country. Airlink is working with the located about 25 kilometers south of the later this year, plus four new ports that International Red Cross to bring in capital, Djibouti City. will quadruple seafreight capacity to latrines to reduce waterborne ill- The proposed airport, to be called nearly 80 million tonnes per year. ness while sanitation systems are Hassan Gouled Aptidon International restored. According to a recent forecast by Airport, after Djibouti’s first president, the World Bank, Djibouti’s economy is For more information, please is expected to open in 2018. It will be expected to grow by 6.5 percent visit airlink-info.org/severe-flooding- capable of catering to 1.5 million passen- this year. –Randy Woods response. –Linda Ball gers and will have runways long enough I am with You all the Way Halit Mimaroglu Sales Manager In a world growing more complex by the hour, we concentrate on being the perfect match for each of our clients. This is why we develop expertise in vertical industries like Precious Commodities, Healthcare or Postal Business and learn to see through our clients‘ eyes, in order to have the perfect solution ready whenever he needs them. It is yet another way that We care for your cargo. SWISSWORLDCARGO.COM 150203_SWC Halit_EN_178x124.indd 1 ACW MARCH 2015 19 03.02.15 14:59
Around the world AMERICAS Photo: ©Alex Kwanten Northern Air Cargo assists in ‘The Last Great Race’ By Linda Ball T he Iditarod Trail Sled Dog Race, operating one flight a day, three or expedited on-demand charters, mostly called “The Last Great Race,” has four days a week, to drop supplies at carrying auto parts between the U.S. been held every year in Alaska since three hub locations along the trail – and Mexico. Approximately 68 percent 1973. The race is the re-enactment of the the towns of McGrath, Unalakleet and of cargo on NAS carriers is freight and dogsled freight route from Anchorage Nome, where the race ends. 32 percent is mail. to Nome, Alaska, covering a distance of No stranger to flying in sub-zero In recent years, NAC has experienced 1,049 miles in harsh, cold winter condi- conditions, NAC, founded in 1956, flies a growth spurt. The addition of Aloha tions. Before the advent of aircraft, dog to 14 points in western and northern and the L.A.-to-Honolulu route, ground sled drivers, known as mushers, deliv- Alaska. One of NAC’s largest customers handling services for Shell Oil’s passen- ered goods to isolated villages, and the is the Red Dog Mine, a zinc-lead mine ger terminal and a four-year contract race follows their historic path. in Northwest Alaska near Kotzebue, with the U.S. Postal Service to carry Just like those early mushers, North- which NAC has been servicing for 20 international mail are just a few of the ern Air Cargo (NAC), Alaska’s largest years. The oil companies that are ac- new roles the company has taken on. all-cargo airline, also delivers goods tive in Prudhoe Bay, at the origination “Every piece of the company is in support of the race that celebrates of the Trans-Alaska Pipeline, are also growing,” Squier said. He said that their arduous journey. frequent customers. MRO subsidiary Northern Air Mainte- This year the ceremonial start is NAC also provides flights for the nance Services (NAMS) has also taken March 7 in downtown Anchorage, as Alaska Bypass, a federal mail delivery on maintenance support for Conoco usual, but the actual race will start in system for small, isolated villages. By Phillips aircraft that service Anchor- Fairbanks for only the second time avoiding the U.S. Postal Service, the age, Fairbanks and Prudhoe Bay. in the history of the race, due to lack bypass allows residents of those towns Squier is new in his role, having of snow. NAC will be there in its 33rd to ship and receive goods for far less previously served as vice president year of ferrying about 75 tons of dog than commercial rates. Squier said of cargo services for NAC and, before food, sleds, kennels, snow machines, bypass mail is more than just letters; that, as manager of ground operations chainsaws, camera equipment, ply- it must be a minimum of a thousand in Anchorage for Alaska Airlines. wood, heaters, propane tanks, perish- pounds and is often supplies for gro- ables and general gear to support the cery stores and restaurants. This month, however, all eyes will mushers and their dogs. be on Alaska, which is the heart of the But NAC is also tied to freight routes Northern Air Cargo operation. NAC Dave Squier, the chief operating of- in much warmer – even tropical – is one of the earliest sponsors of the ficer of Northern Air Services, NAC’s climes. When Hawaii’s Aloha Airlines upcoming Iditarod, said Stan Hooley, parent company, said weather and went bankrupt in 2008, Saltchuk Re- CEO of the Iditarod Trail Committee. timing are the two main logistical chal- sources, which bought NAC in 2006, Each year, at the annual “musher’s lenges in staging the Iditarod. The du- bought the airfreight portion, Aloha Air banquet,” the carrier gives away a ration of the race, for example, is a big Cargo, based in Honolulu. Squier said brand-new ATV to one of the mushers variable. Winners have arrived in Nome it is predominantly inter-island service, who completes the formidable jour- after eight days, but the last musher with one weekly frequency between ney. NAC also awards the musher who might not come in for a month after Los Angeles and Hawaii. displays the best sportsmanship and starting, so it can be difficult to know NAC in Alaska and Aloha Cargo in spirit with the Herbie Nayopuk award, how long NAC will have to have an air- Hawaii make up the vast majority of named after an Iditarod legend, in addition craft ready to fly in new supplies. Northern Air Service’s business, Squier to $1,049 in one-dollar bills stuffed in The carrier uses a 737-200 freighter said, but the company also keeps a the pockets of a Carhartt jacket. ACW and a 737-300 freighter for the race, couple of aircraft in Laredo, Texas, for 20 MARCH 2015 ACW
AmericasNews DHL Global Forwarding finishes Chicago facility DHL Global Forwarding, the for- The DHL facility has also been vali- warding arm of Deutsche Post DHL, dated by the Customs-Trade Partner- completed construction of its US$35 ship Against Terrorism and is certified million, 491,000-square-foot container by the U.S. Transportation Security freight station in Chicago, which will Administration as a cargo screening be the company’s largest cargo facility facility. By the second quarter of 2015, Opening DHL’s new ORD facility. in the United States. the facility is expected to be designat- In addition, the DHL facility is in the The three-story building, contain- ed by the Transported Asset Protec- process of obtaining a Leadership in ing both office and warehouse space tion Association-Americas, as meeting Energy and Environmental Design to hold 500 workers, is located in federal security handling guidelines. (LEED) certification, a third-party Chicago O’Hare International Airport’s The new facility includes two tempe- verification program for energy-effi- cargo zone and took about a year to rature-controlled chambers, totaling cient buildings. Some of its “green” complete. Part of the building has 10,000 square feet, plus a 1,000-square- aspects include high-efficient light and been designated a Foreign Trade Zone, foot ambient-temperature receiving area. water fixtures, use of drought-resistant which is a secure area under the su- These areas are designed to handle plants in the landscaping, spaces pervision of U.S. Customs and Border pharmaceutical, biotech or medical for bicycle storage and fuel-efficient Protection and considered outside the products, and the new Chicago facility vehicles, and use of materials with customs territory of the U.S. for the is one of eight certified Life Sciences low-emitting indoor-air contaminants, purpose of duty-payment. Stations that DHL has completed in the U.S. among others. –Randy Woods FedEx Trade Networks rolls into Latin America FedEx Trade Networks, the freight area,” said John Gazitua, managing The U.S.-to-Mexico trade lane also forwarding and customs brokerage director for FedEx Trade Networks, includes moving cargo from FedEx segment of FedEx Corp., is adding to Latin America-Caribbean region. Trade Networks in Dallas to Mexico its trade lanes with Mexico and South The Germany-to-Mexico forwarding City, Guadalajara and Monterrey air- America. program bridges European businesses ports by truck. There are two new routes origi- to manufacturing and high-tech hubs in In addition to airport-to-airport ser- nating in Frankfurt, Germany; one Mexico. The service consolidates and vice, FedEx trade networks provides goes to Mexico City and Guadalajara moves cargo from Frankfurt Interna- airport-to-door, door-to-airport and and the other flies to São Paulo and tional Airport to Mexico City and Gua- door-to-door pricing options. Campinas, Brazil. Other new trade dalajara. Commenting on the expansion of lanes are Hong Kong to Mexico City Frankfurt to Brazil delivers goods to services to and from Latin America, and Guadalajara; and Dallas to Mexico both Guarulhos and Viracopos Airports FedEx Trade Networks said that City, Guadalajara and Monterrey. in São Paulo. The air consolidation trade between the Asia-Pacific region “Mexico and Brazil are two strong service also helps customers avoid and Latin America has grown at an examples of key markets for the delays by having consignees and their average annual rate of 20 percent for automotive, aircraft and electronic brokers verify shipping documents be- more than a decade, while trade be- industries, and we are very focused fore arrival. tween the European Union and Latin on providing total end-to-end inter- The Hong Kong flights go into America has doubled to approximate- national freight forwarding solutions Mexico City and Guadalajara five days ly US$280 billion in the past 10 years. and greater market access in the a week. –Linda Ball LAX – HNL – LAX 5 FLIGHTS WEEKLY ALL CARGO 767-300 FREIGHTER INTRODUCING Lihu‘e • Early AM recovery time in HNL WIDE-BODY Kaua‘i Honolulu Kahului • One air waybill, one carrier from LAX O‘ahu Maui to the neighbor islands FREIGHTER Los Angeles • Online shipment tracking and tracing 888-94-ALOHA (25642) SERVICE Hilo California Kona Hawai‘i lax@alohaaircargo.com ACW MARCH 2015 21
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