GLOBAL A
I
R
C
A
R
G
O
W
E
E
K
MANAGEMENT
A
I
R
C
A
R
G
O
W
E
E
K
WORLD ACW Digital is sponsored by AIRPORTS.COM FREIGHTERS.COM
FREIGH
FRE
Tabloid page bled.indd 1
13/09/2018 15:32
The weekly newspaper for air cargo professionals No. 1,006
5 November 2018
Heathrow looks ahead
What does the future hold for UK airfreight?
Alibaba is ready for Singles’ Day binge A
libaba’s Cainiao Smart Logistics Network is getting ready for Singles’ Day with chartered aircraft and a robotic warehouse harnessing the power of the Internet of Things (IoT). The holiday, which is also known as the 11.11 Global Shopping Festival, takes place on 11 November and is popular among young Chinese people has become the largest online and offline shopping day, with Alibaba shoppers spending over $25 billion in 2017. Cainiao, Alibaba’s logistics unit, handled 812 million orders during last year’s holiday, and says it is technologically equipped to handle greater volumes this year. It has opened a robotic warehouse, embracing IoT and is extending its last-mile reach. For cross-border deliveries, containers and charter aircraft will be on hand. Cainiao vice president, Ben Wang says higher customer expectations means it needs to upgrade systems and improve efficiency. He says: “It was only five years ago that parcel orders surpassed 100 million for the first time. Back then it took nine days to deliver the first 100 million parcels. Last year, it took less than three days to deliver the same number of parcels. “Consumers increasingly want faster, better delivery, so that’s what we’re doing. This year, we’re striving to achieve a new high, leveraging the beauty of scale and technology.” Cainiao robotic smart warehouse located in its IoT Future Park has 700 automated guided vehicles (AGV) to drive, load and unload using IoT technology. The system will plan the best route for the AGV to avoid collisions and distribute parcels, with 50 per cent more orders being fulfilled by the entire ware-
Page 5
INSIDE motogp comes to malaysia
mab Kargo has transported 150 tonnes of equipment to Kuala Lumpur in time for the Malaysian leg of the 2018 FIM MotoGP Championship ... page 2
qatar manages mail
qatar Airways Cargo has rolled out an automated mail management system at more than 50 stations, supporting ever-growing volumes of e-commerce ... page 4 pharma solutions in limburg
ups is providing solutions to pharma customers in Limburg to address the logistics challenges and complex regulations in the healthcare industry ... page 6
house over a traditional one. Another IoT innovation is Cainiao’s Sky Eye Program, a cloud-based video-monitoring system to be used by logistics partners Deppon, ZTO Express, YTO Express, STO Express, Best Express and Yunda Express. Sky Eye uses a combination of Computer Vision Technology and Cainiao’s algorithm to help delivery firms identify idle resources and abnormalities in the logistics process. To speed up international deliveries, Cainiao and partners have prepared bonded warehouses covering over one million square metres to store goods as near to customers as possible.
For AliExpress and Tmall World customers overseas, Cainiao has arranged 51 chartered flights to take goods to Western Europe, Russia and Southeast Asia. Cainiao says this year’s preparations reflect changing demand for the “New Retail” era, with Wang saying: “We are providing an online and offline, cross-platform supply-chain solution to merchants and enabling them to cut inventory costs, while increasing operating efficiency, especially around 11.11 - the busiest season of the year. Ultimately, consumers will enjoy a brand-new shopping experience, as delivery service will always be on-demand.”
europe’s smartest cargo hub
amsterdam Airport Schiphol is maintaining its position as the smartest cargo hub in Europe through not only smart programmes but also better .... page 8
aircargoweek.com
A
Movember update #1
THE first donations are in as the hair on the top lip has begun to grow. This was the state of growth on November 1, the first day of Movember. While there is little evidence yet, Photoshop will not be used to enhance the growing ‘tache, Donations to https:// moteam.co/airfreight-airies
I
R
C
A
R
G
O
W
E
E
MotoGP comes to Malaysia
M
AB Kargo has transported 150 tonnes of equipment to Kuala Lumpur in time for the Malaysian leg of the 2018 FIM MotoGP World Championship. The first flight, MH6493 touched down in Kuala Lumpur with equipment from Tokyo’s Narita airport on 26 October at 03.15h, followed by two flights from Melbourne’s Avalon Airport, MH6406 arriving at 04.10 and MH6410 landing at 13.20 on 30 October. The three A330-200 Freighter flights carried 150 tonnes of team equipment and support gear, as well as the BMW M3 MotoGP safety car. The crates were taken to waiting trucks for delivery to the Sepang International Circuit by the MASkargo ground crew. MASkargo chief commercial officer, Jason Thomas says: “Race equipment charters work on a very tight schedule. All equipment must arrive the destination on Wednesday as set-
ting up of the garages need to be completed by Thursday. Friday and Saturday are practice days for the main event on Sunday. “As such the team at MASkargo work very closely with the organiser’s logistics team to ensure the seamless movement of these equipment. Our experience in moving race equipment over the years has made us one of the preferred carriers during the circuit.”
Air Canada breaks ground in Edmonton
Air Canada has broken the ground for its new facility at Edmonton International Airport, housing ground support equipment services and cargo teams. Terracap Group will construct the 50,000 square foot building, with the ground support team occupying 30,000 square feet and Air Canada Cargo utilising the other 20,000 square feet. The facility is expected to open in September
2019, with Air Canada signing a 15-year lease, representing an investment of $19 million over the term of the lease. Air Canada senior vice president for regional markets and government relations, Kevin Howlett says: “Air Canada Cargo has significant business in Alberta and Western Canada, and with air freight and logistics being a rapidly growing sector, we have a strong focus on infrastructure improvement across our network.” The facilities for cargo will enable integration of technology infrastructure and enhanced space usage and enhanced space usage for the optimal flow of goods. In 2017, Air Canada Cargo handled 3.2 million kilos of goods including pharmaceuticals, mail, art, and oil and gas industry equipment through its Edmonton facility.
ACW on this day
A
I
R
C
A
R
G
O
W
E
E
K
Almost a decade after the dot.com crash, airlines again faced a crisis after the 2008 banking crash
Things can only get better
Vol 11 Issue 44 3 November 2008 THE International Air Transport Association has revealed a 7.7 per cent drop in global traffic for September compared to the same month in 2007. An IATA statement said the figure represented “the worst decline since the technology bubble burst in 2001.” The downturn has slowed the year-to-date growth in airfreight to 0.1 per cent, with all regions except the Middle East and Africa seeing negative results. The most alarming drop was with Asia Pacific carriers - the largest single group of players in the market - where the region’s airlines reported a 10.6 per cent decline. Giovanni Bisignani, IATA director general, said: “The industry crisis is deepening. Look at what the banking industry is doing. They are taking government handouts. They are accessing global capital. Airlines are not asking for handouts but today’s crisis highlights the need for airlines to be able to run their businesses like normal global businesses.”
2
ACW 5 november 2018
K
aircargoweek.com
Tabloid page bled.indd 1
05/03/2018 14:32
A
I
R
C
A
R
G
O
W
E
E
Qatar Airways automated mail management
Weaker Q3 results for Panalpina
atar Airways Cargo has rolled out an automated mail management system at more than 50 stations, supporting ever-growing volumes of e-commerce. The cargo carrier also signed an agreement with Descartes and integrated its Descartes vMail product with its in-house cargo management information system Cargo Reservations, Operations, Accounting and Management Information System (CROAMIS) for electronic data interchange messaging. Qatar Airways chief officer cargo, Guillaume Halleux says the automated mail management system will benefit customers and the e-commerce business. He says: “This is certainly a game-changer in the industry as we move forward with our automation and digitalisation initiatives that not only enhance the customer experience, but also demonstrate our contribution to the environ-
nine month profits at Panalpina broke through the 50 million Swiss franc (CHF) mark with the airfreight sector performing well but not as strong as predicted. Consolidated profits increased from CHF 48.4 million in 2017 to CHF 51 million this year, with net forwarding revenue for the Panalpina Group increasing from CHF 4 billion to CHF 4.4 billion. Airfreight volumes increased four per cent, in line with market growth, while gross profits per ton were up 12 per cent to CHF 705. Earnings before interest and tax (EBIT) increased from CHF 69.4 million to CHF 80.2 million, with the EBIT-to-gross-profit-margin coming in at 15.1 per cent. Chief executive officer Stefan Karlen says Panalpina has increased its profits despite the year being characterised by strained international trade relations. He says: “The macroeconomic uncertainties
Q
ment by implementing 100 per cent paperless operations.” Descartes vice president of network integration strategy, Jos Nuijten says: “We are excited that Descartes vMail is helping Qatar Airways Cargo to fully automate mail management. As international e-commerce growth continues to increase demand for airmail transportation, our technology improves operational productivity and provides greater visibility essential to transforming the customer experience.”
K
of the third quarter resulted in air and ocean freight markets that were not as strong as predicted. We saw a market where ocean freight peak season was weaker than anticipated. The airfreight rates went up, which impacted our margins as expected. In all, we have stood our ground in a very volatile environment.”
Al-Mubarak named Saudia ground handling officer
saudia Cargo has appointed Abdulrahman Al-Mubarak as chief ground handling officer, bringing a decade of experience with him. He joins Saudia Cargo with a decade of experience in the commercial, cargo and logistics, planning and strategic management sectors. Prior to joining Saudia Cargo, Al-Mubarak held several executive positions including general manager cargo and logistics at GACA and executive director traffic and logistics development at Dammam Airports Company. His appointment comes as part of Saudia Cargo’s recognition of the important role its ground handling business unit has in achieving its Strategy 2020 transformation programme. Saudia Cargo says it reflects the company’s ongoing investments into its facilities projects, its cargo terminals and people.
Building Bridges from Cologne Bridges Worldwide has added an intra-European cargo route linking Cologne Bonn Airport with Malta and Larnaca in Cyprus using a Boeing 737-400 Freighter. The new route will operate five times a week from Monday to Friday using a 737-400 provided by Swiftair with a payload of 20 tonnes per flight. Bridges Worldwide chief executive officer, Guy Bridges says: “With the introduction of this new route Bridges Worldwide is meeting the increasing uplift demands of the express cargo carriers and the German forwarder community. Furthermore we are offering for the first time direct main deck capacity for the booming fish and perishable exports from Cyprus to Western Europe.” Cologne Bonn Airport chief executive officer, Johan Vanneste says: “We are pleased to welcome Bridges Worldwide as a new member to the fast growing CGN cargo family. The introduction of this new high frequency freighter link shows clearly the great cargo potential of CGN and the CGN cargo catchment area.”
4
ACW 5 november 2018
aircargoweek.com
A A
I
R
C
A
R
G
O
W
E
E
K
lecture staged at Britain’s respected Royal Aeronautical Society (RAeS) in late October sought to explain to members the airfreight business and how Britain can maintain its position as a major European air cargo hub for the next two decades. Two major voices in the UK’s airfreight sector, Nick Platts (pictured), head of cargo at London Heathrow (LHR), and John O’Shea, secretary of the Airline Operating Committee for Cargo UK (AOCC) spoke for more than ninety minutes, ending by taking questions from the 50-strong audience of aeronautical enthusiasts and aviation industry students. Chaired by RAeS’s Peter Cullum, the event commenced with O’Shea giving a detailed and lively account of airfreight since the first recorded instances more than a century ago to the current age of Blockchain, the Internet of Things and e-commerce. After about 20 minutes background from O’Shea, and a round of applause, Platt was invited to take the microphone to expand on his role at Heathrow and how he sees airfreight developing at the important gateway. After introducing a range of statistics on the importance of Heathrow’s import and export airfreight movements to UK plc, he became quite specific on Heathrow’s value as a hub airport. He said: “We are a hub airport. Hubs create economies of scale. We work at full tilt, every day of the year.” He revealed that the airport is working at some 95 per cent capacity at present.
11th in cargo
London Heathrow is around 11th in European cargo activity, he said, noting that other EU hubs had pulled ahead. In response, he launched a 15-year plan in 2015 to improve the cargo offering at the airport. He said: “We launched a change strategy in 2015, split into three five-year parts. The first five years are being spent fixing and maintaining the infrastructure while the second five-year period will be spent capitalising on the network. “The last period will be used to establish our position as a cargo hub.” Discussion then turned to the subject of the third runway and its impact on cargo operations. He said: “When the third runway opens, we will have 40 new long haul routes and expect to double cargo capacity.” He concluded his segment of the lecture by outlining his airport’s master plan and how cargo fitted into the business objectives of the airport. He said: “Heathrow has always been a leader in the airport and aviation world. We pioneered the 32kg rule for luggage. We said that was a large enough weight for our handlers and the
LOOKING AHEAD TWO DECADES worldwide industry has taken that up. “We will remain a global hub as long as we offer a mix of long haul and domestic flights.” He ended his segment by showing though he is head of cargo, the actual activity in the airfreight sector is organised by freight forwarders, airlines and handlers, not by the airport itself. “All I can do is build a runway and a terminal,” he said.
the importance of the expansion to cargo operations at the airport. Addressing concerns about the issue of air-
freight-generated road traffic at the site, Platts said: “Heathrow is running at 95 per cent capacity. We will seek to utilise vehicles better to cut activity. A doubling of capacity does not mean a doubling of volumes.”
TransAtlantic King
London Heathrow is “transAtlantic King” when it comes to airfreight, said Platts. This is because of the vast amount of belly hold cargo that keeps rates low. Currently some 45 per cent of cargo landed at LHR is being transhipped elsewhere. By 2030, Platts expects this to grow to 55 per cent. By then, the UK will have been out of the EU for a decade. However, the links both by road and rail as well as air routes should allow the country to remain a major European cargo hub. What do you think? Will the UK be a major European airfreight hub in 2038? james.graham@azurainternational.com
Off the rails
Following applause, Cullum invited questions from the audience. First off, came a question concerning possible rail links to the airport that could be used by air cargo operations. While a number of European airports are able to consider rail access, Heathrow’s location to the West of the capital presents many problems that would ultimately prevent a rail link for freight. Platts outlined a notable experiement which saw Scottish salmon, one of the most valuable airfreight cargoes by weight, brought down to Heathrow by train. It arrived on the passenger platforms and was quickly moved to the airfreight handling facility for processing. “Rail turned out to £150 cheaper than trucking,” recalled Platts. However, the extra time spent in transhipping the fish meant that any advantage by sending it by rail was lost. He said: “Rail to air transhipment is difficult. Cargo movements are costed in three terms: freight costs, time costs and predictablity costs. “If the train is late, the plane won’t wait,” he said.
Heathrow expansion
Inevitably, comments from the audience turned to the subject of the third Heathrow runway and airport expansion. Platts discusses
How can Britain maintain its position as a major European air cargo hub for the next 20 years?
aircargoweek.com
ACW 5 NOVEMBER 2018
5
pharmaceuticals
A
I
R
C
A
R
G
O
W
E
E
K
UPS provides solutions for customers in Limburg Navigating the logistics and regulations of healthcare is a major challenge. UPS is working with customers across Limburg to overcome these challenges.
U
PS is providing solutions to pharma customers across Limburg in the Netherlands to address the logistics challenges and complex regulations in the healthcare industry. Limburg is the home of UPS’s European healthcare distribution campus, which has more than 70,000 square metres of dedicated healthcare logistics space serving the region’s medical cluster. Across Europe, UPS operates 15 dedicated healthcare facilities covering more than 150,000
square metres in Italy, Spain, Hungary, Poland and the UK. The Netherlands, Limburg in particular has a number of advantages. UPS marketing manager, Jan Denecker tells Air Cargo Week (ACW): “The country’s great infrastructure, highly-educated workforce and connectivity to major transportation hubs make it the ideal location for our healthcare campus. For example, the one hour of trucking from the UPS European air hub in Cologne/Bonn enables late order cut-off times.” Its central location in Western Europe also makes it a critical location to serve the industry and reach more than 80 per cent of the healthcare market in a 1,000-kilometre radius. Denecker says UPS focuses on integrated healthcare logistics across airfreight, warehousing, distribution, labelling and packaging, parcel delivery and ground freight services, as well as enhancing service, compliance and control. He says: “We also have more than 600,000 square metres of dedicated healthcare distribution space around the world, highly trained healthcare logistics personnel, and dedicated services to protect healthcare products during transit.” UPS works with numerous healthcare companies across the pharmaceutical, biotech and medical device and supply sectors. Products range from high value, speciality pharmaceutical products to in vitro diagnostics to medical devices. One company that has operations in Limburg is medical device company Boston Scientific, taking advantage of its central position between three hubs of the main express carriers in Europe. Vice president of global customer services and supply chain in Europe, Hans Willems tells ACW: “Besides this, the central location in continental Europe makes is possible within a range of 1,000 km to reach a huge part of the hospitals by road within 24 hours.” He adds: “We ship over 10 million devices per year to hospitals in Europe and outside Europe distributors / distribution centres. This equals between 4,000-5,000 shipping boxes per day out of Kerkrade, our main Tier 1 distribution centre in Europe.” One of the complaints among pharmaceutical and medical companies is the quality of service across the air cargo supply chain. Airports within Limburg’s catchment area have been working hard on improving services with IATA CEIV Pharma being embraced across the region. Willems comments: “Certifying supply chains by airport communities and air cargo industry is always positive, also for medical devices.” Communication has also been an issue, though Willems says: “There is a healthcare logistics platform (HLF), with members of medical device industries and pharma companies from Limburg, who address these issues to the air cargo
6
ACW 5 november 2018
aircargoweek.com
community.” UPS has been working on improving services to reduce the chance of products getting damaged. The growth of temperature-sensitive biopharmaceuticals and personalised medicines is changing the landscape and increasing demand for temperature-controlled solutions and in-transit intervention services. Denecker says UPS has developed a suite of solutions for temperature sensitive shipments called UPS Temperature True. It offers a portfolio of thermal packaging, proactive monitoring and intervention services, temperature controlled storage, risk management and contingency planning solutions to protect products through the supply chain including parcels and multimodal freight services. UPS Proactive Response Secure has been developed for sensitive parcel shipments, with Denecker commenting: “This is a solution combining shipment monitoring and risk management to mitigate product spoilage and protect revenue for high-value, time- and temperature-sensitive shipments. The service helps critical shipments reach their destinations even if unexpected events occur and covers potential losses if products are damaged or spoiled.” He says if milestones are missed, UPS will respond automatically according to predefined instructions to get packages back on track. The service covers any charges needed for intervention including pre-arranged procedures to maintain temperatures or expedited same-day deliveries. An issue facing the healthcare industry is the pressure to lower costs. Denecker says healthcare costs are growing nine per cent annually. He says: “With these cost pressures come the need for greater efficiencies, specifically in supply chain. UPS’s smart global logistics network offers a wide range of modes of transport, whether air, ocean or road that meet any needs of our healthcare customers.”
pharmaceuticals Calculating total cost of ownership in thermal packaging A
I
R
C
A
R
G
O
W
E
E
K
Kevin Lawler, a vice president at Pelican BioThermal, has developed a highly complex calculator to help drug makers decide whether to lease or purchase equipment. This calculator takes nearly 30 variables into account to help inform potential customers which variables are driving their shipping costs. Here he describes it for Air Cargo Week readers.
W
hen it comes to reusable temperature-controlled shipping containers, leasing and buying each has their own pros and cons. The question of which one is best is something we frequently discuss with pharmaceutical manufacturers and other stakeholders in the pharma cold chain. To assist with this discussion, we have developed a detailed calculator that takes into account more than 30 variables that have an effect on an end user’s total cost of ownership. Of those 30 variables here are the five that have the greatest effect:
1. Purchase price of containers and all components
The most obvious variable to consider is the price of the container and the components being used in shipments. If shipping in low frequencies, leasing a container at a low monthly cost often makes more sense than outright purchasing a container than spends most of its time sitting on a shelf. On the flip side, if you are a high-volume shipper whose containers rarely sit still for more than a few days a month and you have trained staff at the shipping and receiving ports that can handle the maintenance, making the upfront investment of purchasing temperature-controlled containers could be a prudent decision. Additionally, your accounting department may have a preference as well. Under most accounting standards, an outright
purchase qualifies as a capital cost and a monthly lease qualifies as an operating cost. Ensure you have clear policies in place relating to how your organisation would prefer to incur costs.
2. Inbound transportation of packaging
Shipping temperature-controlled containers from a service centre to a packing facility — for example, the cost of getting our containers to you — has a significant effect on the cost of ownership as well. Packing facilities located far away from service centres require additional temperature control measures with a longer temperature control duration. To help reduce these transport costs, look for temperature controlled packaging providers that are consistently building out their service centre network. However, if you have the training and personnel, your organisation can condition parcels in-house, reducing the cost of inbound transportation.
3. Outbound transportation cost
Leased, pre-conditioned containers do not require expensive on-site cooling equipment or hiring professionals with special training. You simply need to focus on load and go; however, if you are high volume shipper, having that equipment and training in your toolkit can offset the expense of pre-conditioned containers.
4. Payload capacity and efficiency
For years the industry worried solely about parcel inner dimensions, working to put as much payload in each container as possible. Recently, we have seen the pendulum swing to focusing on outer dimensions — after all, a 28-litre inner volume is going to be the same no matter the container. For example, a 28-litre container that has walls containing coolant and insulation three inches thick versus a sometimes less efficient 28-litre container with walls six inches thick has an
aircargoweek.com
outer dimension 67 per cent smaller. While both containers can carry the same payload, smaller overall outer dimensions means more product per pallet and per truck.
5. Storage and warehouse costs
Another way that outer dimensions can impact the total cost of ownership is terms of storage and warehouse cost consideration. Warehouses charge on a square foot per month model, as a result, the number of owned shippers in your fleet — and the size of those shippers — can directly impact your storage and warehouse overhead costs. Additionally, active shippers that require a plug-in power source during storage will incur an additional storage and handling fee. In closing, it is important to take as many variables into account as possible when deciding whether an owned, leased or hybrid model is the best course of action for your organisation. While these five variables are important, they’re not the only factors worth considering. Working together with a temperature-controlled packaging provider that evaluates, not only these factors, but other factors like shipper refurbishment and desired thermal performance, can help better plan and understand your total cost of ownership.
ACW 5 november 2018
7
the netherlands
A
I
R
C
A
R
G
O
W
E
E
K
Schiphol remains Europe’s smartest carg
With slot restrictions in place until 2020, Schiphol is looking at increasing belly cargo and greater efficiency on the ground. We caught up with Bart Pouwels to talk about the latest developments at Europe’s third largest cargo airport.
A
msterdam Airport Schiphol is maintaining its position as the smartest cargo hub in Europe through not only smart programmes but also better communication between its own departments. Speaking to Air Cargo Week at the TIACA Air Cargo Forum in Toronto, the airport’s head of cargo, Bart Pouwels explained that while customers may not look at how Schiphol organises its internal departments, it helps the airport look at where there are opportunities. The passenger side did not always give the cargo sector much thought, and Pouwels says the passenger airlines have considerable capacity that is not being used for cargo. He said he often co-travelled with colleagues from the passenger side who were unaware at how valuable the belly space could be. Pouwels was introduced to the network planners and decision makers where they discussed the criteria for opening new destinations. It included the number of seats, both economy and business and that was it before handing over to the cargo division.
Tell me cargo is not important
Pouwels said: “I said why don’t you make cargo one of the criteria whether you can make it profitable or not because the contribution of cargo can be substantial to your business.” This started about two years ago, and a tool has been developed to show the value of cargo on the route. When they asked about what air cargo could contribute, it was explained that if you have 20 tonnes of capacity at $2.5 a kilo one way then you could double it on the return. Pouwels asked a consultant to calculate the contribution of belly cargo, who developed a programme showing how the incremental cost of the extra kilos would affect operations. It was found there was a small increase in fuel costs but the extra revenue significantly increased profitability.
8
ACW 5 november 2018
aircargoweek.com
“I then said to them convince me cargo makes a difference. We already knew that when we had the idea but they convinced it to me.” A university student was later taken on to calculate how much capacity was not being used. It was found almost 50 per cent of capacity was not being used “so there is a huge potential for getting cargo to Schiphol and for exporting more cargo from Schiphol. Given we are capped at 500,000 movements a year until 2020, where can we grow?” He adds: “The merger of the two departments has been welcome within Schiphol to optimise the belly freight.” The slot restrictions have resulted in a lot of discussion about freighter movements at Schiphol. IATA slot guidelines are operated on an 80/20 rule, meaning if airlines operate 80 per cent of flights they receive grandfather rights for the next season. He said: “Freighters never fly from A to B and from B back to A so it’s more difficult for freighters to perform 80 per cent of the operations.” “When it is congested and there is scarcity then freighters are the first ones to lose their grandfather rights and that’s what we have seen happening, which is a pity but that’s a fact of the world slot guidelines.” Another area where Schiphol is improving efficiency is the Smart Cargo Mainport Program, which is all about digitalisation and improving operations on the ground, allowing cargo to come in and move on to its next destination. Citing KLM’s European Green Fast Lanes project, which was piloted in Frankfurt, cargo was trucked to Schiphol for the next flight out rather than possibly for the flight leaving in two or three days time. Pouwels said: “They worked on this by sharing data about what it is you expect to receive and what was actually sent out. On the one hand it is about educating the customer and on the other, it is about digital information.”
A
I
R
C
A
R
G
O
W
E
E
the netherlands
K
cargo hub
He added: “It’s like a slot system. The truck arrives in Amsterdam where they open the door and they know what’s in there and what flight it’s meant for. Better planning means better results in the operational performance. It was so successful it was implemented in 20 stations across Europe.” The landside pick up and delivery project has also been a success. Pouwels says that trucks arriving at Schiphol need to go to a handling facility but if they all went to the same door at the same time then there would be congestion and chaos. An app is being developed so truck drivers receive a slot to go to the facility. He said: “If they are given a slot where they are expected at this time and this handling premises then another driver can go to another facility. It’s all about planning, and planning can only be done when you have accurate data available at all times.” The app is now tested for truck drivers and is designed to be scaled up to a higher level. A track and trace tool has also been developed for the flower industry where cargo can be traced on box level from origin, in East Africa for the sake of the program. Information such as the farmer, the agent who bought it, the airline that transported it, the trucker, the handling company, the freight forwarder and even customs were involved shared information in the cloud.
Stop hiding behind data
“Everyone has access to this information so there is no more hidden transparency. Everybody at the same time has access to this information. We have created a platform where they share their information and upload their information. There is no overwriting of information, only adding more information to the system.” The air cargo industry talks about collaboration and data sharing but does not take action.
Pouwels wants to share the examples and Schiphol’s knowledge to the industry. He tells ACW: “I’m not a genius, I’m just a normal guy. If we all act normally and try to share information that makes life easy but I still see people hesitating to open up and being will to share. It’s like they think if I keep information to myself then I can earn money. I think that is so stupid.” Pouwels agrees it makes operations inefficient though some partners benefit from this “but in the end it’s short sighted”. Saying that when he travels, Pouwels can easily find information on subjects including bus timetables but in the cargo industry you cannot get access to important information. “There are so many platforms, everything is there and has been invented but it is not being used or not connected because people are reluctant or people are afraid to be open because I might be able to say you did not deliver as promised,” he says. He urges the cargo industry to be open, saying: “I expect full transparency, it is the only way forward.” As for the future of Schiphol, Pouwels says there have been a lot of discussions about the airport and the entire population of the Netherlands has opinion about Schiphol and whether it should be allowed to grow. He says: “The difficulty is our CEO needs to sit around the table with all the stakeholders and try to get an agreement with everyone. We are not certain how this will end. We expect that we can grow step by step from 500,000 movements to maybe 550,000 if that were the end result but this will be gradual.” “We will have a moderate growth path. The growth is there for freighters and passenger airlines. I expect it to be a moderate growth path. We have a lot of customers who want to grow in Amsterdam because the potential is there but the problem is we are limited to a certain number of movements.”
aircargoweek.com
ACW 5 november 2018
9
far east
A
I
R
C
A
R
G
O
W
E
E
SF Holding takes over DPDHL Robust cargo demand in supply chain operations September across Asia Pacific
SF Holding chief strategy officer, Jeffrey Chan signs the deal with DPDHL head of corporate development, Pablo Ciano
D
eutsche Post DHL Group has signed a deal to transfer supply chain operations in China to SF Holding, covering the mainland, Hong Kong and Macau. As part of the deal, DPDHL will receive an upfront payment of €700 million and a revenue based partnership fee over the next 10 years. SF Holding will have access to DPDHL’s supply chain services, management expertise, transportation and warehousing technology. The co-branded organisation will operate under the leadership of DHL Supply Chain’s CEO, Yin Zou and his existing management team. The strategic partnership will allow DPDHL to continue to participate in the Chinese supply chain market, leveraging SF Holding’s domestic infrastructure, distribution network and local customers. DPDHL Group CEO, Frank Appel says the joint
10
ACW 5 november 2018
capabilities will create a “unique platform” to meet the need for a high quality end-to-end supply chain provider in China. He says: “SF Holding’s local market expertise in China has real advantages for our customers across all industries including technology, healthcare, retail, automotive, and e-commerce. Combined with our global operations standards and network support, the agreement provides a solid foundation to continue exploring further opportunities in China in the coming years.” SF Holding chairman, Dick Wong says the agreement will help the company grow internationally, saying: “This partnership agreement will strengthen our capability in providing supply chain services to a diverse realm of industries and allow us to bring world-class management expertise into our supply chain business operations, enabling us to further understand and tailor to our customer needs.”
Air cargo demand across Asia Pacific remained robust in September against a backdrop of easing manufacturing production, the Association of Asia Pacific Airlines (AAPA) says. Demand measured in freight tonne kilometres (FTK) grew by 4.4 per cent in September to 6.2 billion while global manufacturing production and new business orders eased. Capacity measured in available freight tonne kilometres (AFTK) were up 6.5 per cent while load factors were down 1.3 percentage points to 64.3 per cent. Between January and September, FTKs were up 4.7 per cent to 53.9 billion, AFTK by 6.7 per cent to 85.6 billion while load factors were down 1.2 percentage points to 63 per cent. AAPA director general, Andrew Herdman
says: “International air cargo demand grew by 4.7 per cent, benefitting from sustained growth in international trade. The third quarter saw a slightly more moderate 4.3 per cent increase in air cargo demand, compared to the 4.8 per cent growth recorded during the first half of the year.” Looking to the future, Herdman says business confidence remains firm but may be undermined by geopolitical risks and trade disputes. He adds: “Air cargo demand is also being supported by further growth in e-commerce. Overall, Asian airlines remain focused on adapting to changes in this always dynamic industry, seeking out additional growth opportunities whilst striving to maintain margins pressured by the impact of higher fuel prices.”
NCA services returning to normal Nippon Cargo Airlines (NCA) is continuing to restart services with flights returning to Southeast Asia and North America. The Japanese carrier, which has a fleet of eight Boeing 747-8Fs and five 747-400Fs had to suspend all operations in June due to maintenance concerns, with services restarting in July. On 28 October, services to Dallas Fort Worth resumed, with flight KZ188/KZ187 operating on a Tokyo Narita-Anchorage-Chicago O’Hare-Dallas-Anchorage-Narita route.
aircargoweek.com
Flight numbers KZ235/KZ254 started on 1 November on the Narita-Singapore-Bangkok-Narita circuit. New York restarted on 2 November with flight numbers KZ160/KZ159 flying on a Narita-Anchorage-Chicago O’Hare-New York JFK-Anchorage-Narita rotation. NCA says operations to Los Angeles in the US and Frankfurt-Hahn in Germany will resume once aircraft safety is confirmed and necessary arrangements are completed.
K
TRADEFINDER Airlines
Charters
Turkey
United Kingdom
Industry Publications
GSSAs United Arab Emirates
Freight Forwarders
Freight Forwarders
Hong Kong
United Kingdom
Freight Forwarders
azfreight.com : Featured Company Listings
USA
Freight Forwarders USA
aircargoweek.com 11_05 Nov 2018.indd 1
ACW 5 november 2018
11 26/10/2018 11:10
Tabloid page bled.indd 1
26/10/2018 10:52