ACW 14 may 18 by Azura International

GLOBAL A

MANAGEMENT

WORLD AIRPORTS .COM ACW Digital is sponsored by FREIGHTERS.COM

FREIGH

Tabloid page bled.indd 1

22/02/2018 15:00

The weekly newspaper for air cargo professionals Volume: 21

Issue: 19

14 May 2018

Bells ring out as CEVA trades on SIX exchange

Free-running dogs sniff out trouble

ogs that are capable of detecting minute traces of explosives concealed in airfreight are being deployed in cargo sheds at British airports as the UK government introduces its latest measure to reinforce the country’s aviation security. Free-running explosive detection dogs (FREDDs) working in close partnership with their human handlers are being used to check freight for a range of explosive materials. The dogs are being used alongside existing screening methods, offering a rapid and effective way of screening large volumes of air cargo. Each animal has undergone 12 months of rigorous training to achieve government certification before being deployed

bojo to tackle illegal wildlife trade

in the cargo sheds. As they carry out their operational duties they will go through a regular quality assurance programme. Baroness Sugg, UK aviation minister, says: “Free-running explosive detection dogs are the latest addition to the government’s multi-layered approach to tackling potential aviation security threats. “The ability of these highly-skilled dogs to detect small amounts of vapour from explosives hidden in cargo will bolster our existing rigorous security methods, and I was really impressed to see them in action. “The UK’s aviation security standards are already among the best in the world and we will continue to seek out new and innovative ways to ensure that passengers remain protected.” Dogs are already used successfully in a

variety of ways at UK airports, for example, by helping police to identify criminals and prevent illegal activity. The introduction of FREDDs will add to this capability and provide the aviation industry with a new way to fight the threat of terrorism. While all cargo is made secure before it is allowed on to aircraft, the dogs offer the ability to detect minute traces of vapour from concealed explosives. This provides a high level of scrutiny as well as a highly mobile and time-saving way of screening freight, 2.4 million tonnes of which passed through the UK’s airports in 2016. The dogs are already operating in multiple airports, and more will be deployed around the country as the number of approved canines’ increases.

fbi issue reward for valujet suspect

CEVA Logistics marked the first day of trading for its shares on the SIX Swiss Exchange in Zurich with the traditional ringing of a cow bell to launch the day’s business. CEVA CEO, Xavier Urbain was joined by executives from SIX and other members of the CEVA team to celebrate the company’s arrival on the SIX. “We are proud to open this new chapter for CEVA which builds on the transformation that the company has undergone over the last four years. CEVA has successfully repositioned itself among the top third party logistics providers through its global presence, end-to-end service offering in contract logistics and freight forwarding, its balanced blue-chip customer portfolio and its strong solution capabilities,” says Urbain “Our aim was to raise 1.2 billion Swiss francs through the all-primary IPO to strengthen the balance sheet of our company – this objective is 100 per cent achieved. It unlocks additional growth potential with existing and new customers,” he adds. As part of the IPO, CMA-CGM, the third largest container shipping group in the world, has acquired a substantial stake in CEVA Logistics. “Having CMA-CGM on board as a shareholder is a sign of confidence and opens up new perspectives for us in the development of complementary services that meet the growing customer demand for integrated end-to-end solutions and one-stop-shop providers. Our current relationships with customers, carriers and other business partners will remain unchanged”. “Our management and 56,000 employees are fully committed to delivering on our strategy, to accelerate growth and to enhance profitability – in order to sustainably create value for our customers and shareholders,” concludes Urbain.

CEVA CFO, Peter Waller (left) and CEO, Xavier Urbain ring the bell on the SIX Swiss Exchange in Zurich

lufthansa united venture takes off

security like clockwork for swiss

aircargoweek.com

NEWSWEEK

WFS takes over former Irish joint venture

orldwide Flight Services (WFS) has acquired a 100 per cent shareholding in its former WFS Ireland joint venture after buying out the minority shareholding of its partners, Gerry Jackson and Brendan Byrne. The venture in Ireland – covering cargo handling stations in Dublin, Cork and Shannon has been operating for 13 years with WFS as the majority shareholder. WFS serves over 50 airline customers in Ireland, including Air China, American Airlines, Delta Airlines, Emirates Airlines, IAG Cargo, Lufthansa, SAS and SWISS International Airlines. Volumes rose to more than 45,000 tonnes at the three stations, where WFS employs over 100 staff, led by Dublin based general manager, Simon Coomber. WFS executive vice president for cargo – Europe, Middle East and Asia, John Batten (front row second left) says: “In Ireland, we are proud to have partnered with Gerry and Brendan for the past 13 years because they are highly respected by our customers and have worked closely with us to grow the business to its strongest-ever position. Batten says one of WFS’s next major investments in Ireland will

Brussels sprouts Istanbul route TURKISH Cargo has added Brussels, the capital city of Belgium, as a destination for direct scheduled cargo flights. The opening of the new cargo destination was celebrated with a spectacular event attended by all the agencies operating in Brussels. In the first stage, the weekly frequencies with A310F cargo freighter will be operated Saturdays-only. Turkish Cargo operates currently to 85 destinations with its 18 cargo aircrafts. Belgium, also known as the European Union and the European Capital, is a main production centre for mechanical chemical products, mining and automobile fixtures and is also a major chocolate production centre.

Turkish Cargo aim to focus on carrying mainly time and temperature sensitive shipments such as drugs and other express products with the recently added IST-BRUIST cargo flights. The airline plans to expand the cargo flight network further by the second half of 2018 with the new routes such as Quito, Equator; Karaganda, Kazakhstan;, Tokyo, Japan; Navoi, Uzbekistan; Abu Dhabi; UAE; Addis Ababa, Ethiopia; and Misurata, Libya.

DWC volumes grow CARGO traffic at Dubai World Central (DWC) grew by 8.9 per cent in the first quarter of 2018. Airport operator Dubai Air-

ports says DWC increased to 229,831 tonnes, compared to the first quarter of 2017, when it handled 211,144 tonnes.

Quote of the week “There is not much glamour at 3am in a cargo shed in the middle of winter” Momart airport and security manager, Anthony Lo

ACW 14 MAY 2018

Upwards for Emirates EMIRATES is reporting a profit of 2.8 billion UAE dirhams ($762 million), 124 per cent better than 2016/17. Meanwhile, Emirates SkyCargo recorded a strong performance in a resurgent market, and continues to play an integral role in the company’s expanding operations, contributing 14 per cent of the airline’s total transport revenue.

be a 70 per cent expansion of temperature controlled facilities in Dublin to support pharmaceutical products and services. Byrne (front row second right) adds: “Gerry and I are proud to see the business is such safe hands and are confident that WFS’ ambition and ability to invest for the future will continue to produce significant new opportunities for both our customers and staff.” Jackson retired from the company at the end of 2017 but Byrne will continue in his role as president of WFS Ireland.

Swissport gains CEIV at EuroAirport

SWISSPORT has been awarded CEIV Pharma certification by the International Air Transport Association for operations at Basel’s EuroAirport. The Center of Excellence for Independent Validators (CEIV) in Pharmaceutical Logistics standard ensures airfreight customers receive the highest quality and safety standards for the transportation of pharmaceutical products. EuroAirport Basel-Mulhouse-Freiburg is

Swissport’s sixth CEIV certified cargo facility and volumes for the cargo handling agent reached 47,000 tonnes in 2017 at the Franco-Swiss airport. Since opening the warehouse in 2015, Swissport has expanded the facility, which features 7,500 square metres of temperature controlled surface, with a temperature range of between 15 and 25 degrees Celsius. There are special cooling units for pharmaceuticals ensuring temperatures between two and eight Celsius and a unit for goods requiring temperatures of -20 Celsius. Due to direct access to the tarmac, Swissport can move pharmaceuticals within an average of two minutes from its temperature controlled warehouse to the aircraft.

ACW REWIND BRISTOL Airport fireman, Colin Linge sets the record books on fire by not putting out a single blaze at the regional airport in his 30 year career.

Go to blazes! Not for 30 years Vol 2, Issue 40 11 October 1999

AN AIRPORT fireman at the UK’s regional Bristol airport is set to enter the record books for one of the world’s longest periods spent not actually attending a fire. Colin Linge, 54, has never teckled a blaze in 29 years’ service at the airport and hopes to retire next year after three decades of not doing his job for all the right reasons. The worst incident that Linge has tackled was a 1984 incident when an Airbus overshot and skidded off the runway and teh

aircargoweek.com

fire brigade was required to evacuate the aircraft. He has clocked up more than 50,000 hours since 1971, and practices for an emergency almost every day. His fireman’s skills have been honed on false alarms, traffic shunts and first aid calls. Linge is reported to have passed away in 2017 when he would have been around 73 years of age. Ironically, around the time of his death, the airport suffered a fire that diverted aircraft and made flights circle the airport.

Tabloid page bled.indd 1

02/05/2018 14:51

NEWSWEEK BoJo to tackle wildlife trafficking Unisys to assess risk for CBP

ritish foreign secretary Boris Johnson has teamed up with former England cricketer Kevin Pietersen to tackle illegal wildlife trade entering the country through London Heathrow

airport. Johnson and Pietersen visited the illegal wildlife trade ‘dead shed’ at Heathrow to see the important role the UK Border Force plays in fighting the illegal wildlife trade at the gateway. After receiving a briefing from illegal wildlife trade experts in the Border Force team, the two were shown confiscated items which people have tried to smuggle through Customs and are now housed in Heathrow airport’s ‘dead shed’. Foreign Secretary Johnson (pictured right) says: “The illegal wildlife trade is a vile and loathsome crime with organised gangs and criminal scum at the very heart of it. Not only is it wiping out wildlife populations, it is also robbing com-

munities of sustainable incomes and damaging economies across Africa and Asia, all for the senseless demand in live animals and wildlife products for trinkets and quack medicines.” Pietersen (pictured left) says: “In South Africa, close to three rhinos are illegally killed every single day. It’s shameful that the world is just sitting back and watching as whole species are being wiped out.”

US Customs and Border Protection (CBP) has selected Unisys Corporation to develop, operate and manage systems used for risk assessments of cargo entering the United States by the agency’s Targeting and Analysis Systems Program Directorate (TASPD). The time and materials task order, awarded under the US General Services Administration’s Alliant Government-Wide Acquisition Contract, spans 5.5 years and features a sixmonth base period followed by 10 six-month option periods. All options are exercisable at the discretion of the government. This work will support TASPD’s Office of Information and Technology, which provides technology solutions that support CBP inspection and enforcement activities to help the agency protect US borders and facilitate legitimate trade and travel.

The Unisys solution quickly deploys new capabilities like big data analytics, cloud and biometrics to help CBP officers and agents automatically identify which shipments or travellers present a low risk appropriate for “low touch” automated clearance and those that present a higher risk requiring additional investigation or inspection. This process allows CBP to avoid clearance delays by focusing resources on inspecting and analysing high-risk travellers and cargo.

DHL takes a 747 around the world DHL Global Forwarding is deploying a second Boeing 747-400 Freighter to connect the US, Europe and Asia in response to high demand. Up to 100 tonnes of capacity per flight will be on offer, which will operate on a transpacific route from Shanghai Pudong Airport to Cincinnati in the USA, from where it returns to Seoul’s Incheon Airport. It will then connect Seoul with Wuxi in China before continuing to Germany’s Frankfurt-Hahn Airport then going back to Shanghai. By re-routing the first service to Wuxi, DHL Global Forwarding will offer twice weekly departures from Wuxi to Frankfurt-Hahn. The increasing demand for airfreight capacity on Asian routes is fuelled by all major industries, specifically China’s electronics, electric motors, electrical and mechanical appliances as well as medical equipment companies bolstering demand.

DHL Global Forwarding chief executive officer, Tim Scharwath says: “Demand is currently exceeding supply mainly due to the large economies performing strongly. On major trade lanes volumes are high, but capacities are low – a trend that will continue. “To increase our operational efficiency and to offer our customers the best-possible solution, we thus decided to create further capacities we have direct control over.” The cargo aircraft is being leased from Atlas Air through an aircraft, crew, maintenance and insurance agreement.

Emirates to start Edinburgh flights EMIRATES is continuing to expand its UK network with daily flights connecting Dubai with Edinburgh from 1 October. Flight EK023 will depart Dubai at 0955h and arrive in Edinburgh at 1450h, before the return flight, number EK024 will leave Edinburgh at 2015h and arrive back in Dubai at 0640h the next day, providing connections to destinations across Africa, Asia and Australasia. The service will also enable Emirates SkyCargo to provide up to 20 tonnes of cargo capacity, providing local businesses opportunities to export goods such as salmon and

ACW 14 MAY 2018

aircargoweek.com

whisky. Edinburgh Airport chief executive, Gordon Dewar adds: “This is a fantastic announcement for Edinburgh Airport as we welcome another world renowned airline to Scotland’s busiest airport, which will enhance our connectivity with the Middle East and further afield.” Edinburgh is Emirates’ second Scottish destination after Glasgow and will be the eighth in the UK after it starts daily Boeing 777-300ER services to London Stansted Airport in June.

FBI issue reward for ValuJet suspect

lmost twenty years after he went on the run, the US Federal Bureau of Investigation (FBI) has issued a $10,000 reward for the capture of fugitive Mauro Ociel Valenzuela-Reyes, one of the accused in the 1996 fatal McDonnell Douglas DC-9 crash of ValuJet Flight 592 in the Florida Everglades. All 110 people on board were killed in the tragedy. On April 6, 2000, a federal arrest warrant was issued for Valenzuela-Reyes in the United States District Court, Southern District of Florida, after he was charged with disobedience and resistance to lawful order and command of the United States District Court for the Southern District of Florida, and failure to appear for trial. Valenzuela-Reyes was previously charged on July 13, 1999, with conspiracy to make false statements to the Federal Aviation Administration and the Department of Transportation; false statements to the Federal Aviation Administration and the

Valenzuela-Reyes as he may look today Department of Transportation; and causing the transportation of hazardous material. On May 11, 1996, Flight 592 crashed in the Florida Everglades, killing all 110 people on board. Investigation led to the indictment of an aircraft repair facility in Florida, and three of its employees, including Valenzuela-Reyes,

Saudia brings Royal Rumble to Jeddah

SAUDIA Cargo helped bring the WWE Greatest Royal Rumble to Saudi Arabia by flying equipment needed for the live telecast of the show on 27 April. A Boeing 747 Freighter hauled tonnes of production equipment, including the wrestling ring to help create the spectacular show in Jeddah. The airline provided the transport from New York to Jeddah at the request of the Saudi General Sports Authority. Saudia Cargo chief executive officer, Omar Hariri says the team were delighted to have carried out the freight and logistics mission to ensure the successful hosting of the WWE Greatest Royal Rumble in Saudi Arabia. The WWE event was held at the King Abdullah Sports City in Jeddah on 27 April with 50 wrestling superstars including John Cena, Triple H, Roman Reigns, AJ Styles, Braun Strowman, The New Day, Randy Orton, Bray Wyatt and Shinsuke Nakamura attending.

then a mechanic, in connection with improperly packaged chemical oxygen generators that were loaded on Flight 592 and signed off by company employees despite lacking safety caps. Valenzuela-Reyes is the final employee wanted in connection with this incident. A new wanted poster has been issued that shows an array of photos of the fugitive as he appeared in 1996 and how he might appear today. The FBI notice says that Valenzuela-Reyes has connections to Atlanta, Georgia and Santiago, Chile. He may be in Chile and may travel to Peru, Argentina, Brazil, and Bolivia, and other South American countries. In April, the FBI Miami office announced the reward and released age-progressed images of fugitive. If any Air Cargo Week reader recognises Valenzuela-Reyes or has any information concerning this person, they are asked to contact their local FBI office or the nearest American Embassy or Consulate.

Manston plans withdrawn ‘temporarily’

THE company behind the plan to reopen Manston Airport has withdrawn its Development Consent Order application that had been submitted with the Planning Inspectorate. RiverOak Strategic Partners submitted 63 documents totalling almost 11,000 pages of proposals and plans to reopen Manston Airport as a freight hub with complimentary passenger and general aviation services to the Planning Inspectorate in Bristol on 10 April. In a letter from law firm Bircham Dyson Bell, it says RiverOak is withdrawing the application and is engaging with the Planning

Inspectorate “with a view to resubmission as soon as possible”. In a statement on its website, RiverOak says: “RiverOak Strategic Partners has temporarily withdrawn its DCO application in respect of Manston Airport. This is not uncommon with DCOs and RSP is in dialogue with the Planning Inspectorate in order that the application can be resubmitted as soon as possible.” Manston Airport, located adjacent to the village of Manston in the Thanet District of Kent has on 15 May 2014, with the loss of 144 jobs, and since then there has been a campaign to reopen it as an airport. The site was sold with proposals to redevelop the site with up to 4,000 houses, a business park and other amenities, as well an airport heritage site, in a project known as Stone Hill Park.

Hactl handles WGA flights

Atlanta joins RAP e2 network ENVIROTAINER has increased its RAP e2 network in the US to eight destinations by adding Atlanta to the network. The RAP e2 is designed to maintain temperatures between 0 and 25C in nearly any ambient condition along shipping routes globally, and the batteries can last for up to 100 hours. Key features of the RAP e2 include fully redundant electric heating and compressor cooling systems, rechargeable batteries that can be charged at standard AC power connection points, and enhanced air circulation inside the container to ensure a low temperature gradient within the cargo space. Atlanta is the 8th RAP e2 station in the USA after New York, Chicago, Indianapolis, Dallas/Fort Worth, San Francisco, San Juan and Los Angeles. Envirotainer head of operations – Americas, Ernest Murphy says: “We have added four RAP e2 stations in the region in one year, in essence doubling our capacity. The new station in Atlanta also serves as our regional competence centre for RAP e2’s which is great for our US-based customers and partners.” Envirotainer has also reached an important milestone with the RAP e2, with the 1,000th coming off the production line in Stockholm, Sweden.

Florida-based Western Global Airlines has appointed Hong Kong Air Cargo Terminals Limited (Hactl) to handle its first scheduled service into Hong Kong. The new twice-weekly 747-400F service between Hong Kong and Los Angeles is being operated in partnership with US forwarder Flexport. The airline plans to add a further weekly flight from September. Hactl is providing ramp handling, terminal handling and all documentation for the flights. Announcing the launch of the joint service, Flexport SVP and global head of air freight Neel

Jones Shah, says: “This new partnership allows Flexport to offer predicable, affordable and a custom-tailored service to our customers with guaranteed capacity through seamless, dedicated scheduled service in the important Hong Kong to US markets.” Hactl executive director Vivien Lau, comments: “We welcome Western Global and its partner Flexport to our growing carrier family, and look forward to supporting both with our unrivalled freighter handling expertise, stateof-the-art systems and impressive resources.”

aircargoweek.com

NEWS WEEK WORLDNEWS Air France KLM chairman and chief executive officer, Jean-Marc Janaillac has resigned after Air France staff rejected a multi-year pay agreement. Staff had been offered a pay increase of seven per cent over four years, including a two per cent increase in 2018 but of the employees who voted, 55.4 per cent said no. The participation rate was 80.3 per cent. Between 26 April and 4 May, 46,771 staff at Air France expressed their opinion in an electronic voting process supervised by a corporate voting professional. In a statement on its website, Air France KLM says the board “deeply regrets the situation” and have asked Janaillac to remain in place until the Group’s General Meeting on 15 May when an interim governance solution will be announced. Japanese manufacturer of computer monitors and displays iiyama has entered a long-term strategic partnership with logistics service provider GEODIS. On Saturday, June 9, Chicago’s Grant Park will host the area’s largest charitable kickball tournament that includes 1,000 participants and 60 teams. Hosted by TMC, a division of forwarder C.H. Robinson, the 14th annual Kicks for Community tournament benefits the Greater Chicago Food Depository, a notfor-profit food distribution and training centre. Ethiopian Airlines and Bombardier have concluded a firm order, which sees the airline acquire 10 new Q400 aircraft and purchase rights for five additional Q400 aircraft. The list price value of the firm order is $332 million. Bombardier has signed a firm order for 15 new CRJ900 regional jets with American Airlines as well as options on an additional 15 CRJ900 aircraft. At list price, the firm order is valued at approximately $719 million. United Airlines has taken delivery of its first 737 MAX 9 aircraft from the Boeing Delivery Center in Seattle, Washington. United will have 10 737 MAX 9 aircraft by the end of 2018. Western Australian minister Alannah MacTiernan is pushing for sheep to be flown to the Middle East to help fill the void that would be created by a proposed pause on seaborne live exports during the northern summer months, according to reports in Perth Now. UPS has named Lou Rivieccio as president of UPS Europe. Rivieccio is responsible for all UPS operations in 56 countries and territories and more than 49,000 employees. Tianjin Airlines has started direct flights from London to Xi’an, with twice-weekly services to the eastern departure point of the ancient Silk Road in China’s Shaanxi province. The Airbus A330 departs at 3.15pm from Xi’an Xianyang International Airport, arriving at London’s Heathrow Airport 14 hours later. The service will operate on Mondays and Fridays.

ACW 14 MAY 2018

GERMANY

No time to stand still at Frankfurt Airport

ermany’s main cargo hub Frankfurt Airport is in seemingly continuous expansion phase, writes Neil Madden. Cargo throughput (including airmail) rose by just 0.7 per cent to 539,610 tonnes in the first quarter of this year, in line with a warning given by owner Fraport Group of slower growth in cargo. This was attributed to a combination of factors, including the strong euro, later than usual Chinese New Year and early Easter holidays. However, the airport is not standing still. In March, China Cargo Airlines became the latest cargo carrier to offer a regular service from Frankfurt. China Cargo is operating a new service between Shanghai-Pudong and Frankfurt twice

a week on Wednesdays and Sundays, and the carrier intends to increase the frequency after obtaining additional traffic rights. Investing in infrastructure remains critical to Frankfurt’s future success. The airport’s CargoCity South has grown into an internationally recognised template for the development of a successful logistics hub. More than 200 companies now have a presence on the site’s 98 hectares.

Connections to the world

With over 300 flight connections worldwide, the Frankfurt hub enjoys the added advantages of being connected to one of Europe’s most important motorway junctions, the Frankfurter Kreuz, as well as a first-class rail network. In April, Swissport and Fraport sign long-term lease agreement for a new cargo warehouse at the airport. At some 16,000 square metres the new facility will be the third largest in Swissport’s global network. Construction is due to start in 2019, with the facility handed over to Swissport in 2020.

Infrastructure is key

“Infrastructure plays a key role in optimising our service delivery and reaching the ambitious efficiency and reliability goals for our clients around the world,” said Swissport Germany, Austria & Switzerland senior vice president Willy Ruf, explaining why the ground handler had committed millions of euros to the project. Following this announcement, Fraport AG also received the CEIV Pharma certification from IATA for ramp handling of pharmaceuticals. This makes Frankfurt the largest airport in the world to have received this certification for the entire handling chain of pharmaceutical products. Fraport senior executive vice president of ground services Martin Bien commented: “We see pharmaceutical transportation as a growth market for the future. Receiving the CEIV certification underscores that Fraport has the requisite infrastructure and the necessary expertise to accommodate this growth.”

100,000 tonnes of pharma

More than 100,000 tonnes of vaccines, drugs, medicines and other pharmaceutical products were handled at Frankfurt in 2017. Fraport’s ramp handling division has been operating a transporter vehicle for temperature-controlled shipments for over 20 years. Now, it is the first ground equipment in the

ACW 14 MAY 2018

aircargoweek.com

world to be covered by the CEIV certification. The special vehicle allows transport of main and lower-deck units in a temperature range from -30 to +30C with pinpoint precision. Moreover, the transporter is equipped with an electronic temperature monitoring system and tracking options.

Smart handling

And as technology is set to play an increasing role in cargo handling, Fraport is part of group looking to exploit an innovative ground handling system. Fraport is co-operating with local logistics software start-up CargoSteps, RheinMain University of Applied Sciences, the Fraunhofer Institute, autonomous vehicles manufacturer KAMAG, warehouse logistics specialist LUG and forwarders Sovereign and Dachser in the ‘Smart Air Cargo Trailer (SAT)’ project, which received a grant from state investment agency HessenAgentur.

Automated transport

The goal of SAT is to automate short-haul transport between cargo handlers and freight forwarders with the help of a cloud-based platform and to replace this with (semi-) autonomous transport. Ultimately, the project should lead to ‘needsbased transport’ carried out when required by the sender or recipient. SAT could practically eliminate waiting times by carrying out each transport move on demand. In addition, it should speed up the transfer process between handlers and forwarders as well as significantly reducing error rates. A further benefit is greater utilisation of vehicles and hence fewer transport moves for a given volume of cargo. This would cut CO2 emissions related to standing and waiting times.

GERMANY

Lufthansa-United joint venture gets off the ground

nited Airlines and Lufthansa Cargo have launched their air cargo joint venture with the two airlines jointly managing sales and bookings from 3 May. Starting on selected routed from the USA, Italy, United Kingdom, Ireland and Germany, the carriers are now jointly managing sales and bookings of standard and express shipments. They will expand the geographical scope in the coming months and plan to include additional products and features in the future. Lufthansa Cargo chairman and chief executive officer, Peter Gerber says the joint venture will provide enhanced value to customers, saying: “The combination of the two strong networks offers new routing options. The co-location of our warehouses, in Munich for example, is an additional benefit, with customers needing only

Gerber

one location for export drop-off and import delivery. “Aligned processes and quicker transfers between separate warehouses also lead to streamlined transport times.” United Cargo president, Jan Krems adds: “Through our joint venture, United and Lufthansa Cargo offer transatlantic shippers more options that produce these benefits – including increased frequencies on a combined network accessible through either

partner’s booking channels. Our aligned teams and processes also deliver the superior service quality essential to our customers’ success.” Lufthansa Cargo is upgrading its cargo fleet with an additional two Boeing 777 Freighters. The 777s will replace MD-11 Freighters in the future, and will reduce fuel consumption, noise emissions and unit costs.

Leisure Cargo goes Blue

CARGO management company Leisure Cargo spent much of last year distancing itself from insolvent airline Air Berlin before finally being bought by Zeitfracht in October 2017. In short order, though, Leisure Cargo has found a new lease of life. From 1 June this year, the company will take over management of belly freight capacity in the 29 B737 passenger aircraft operated by Romanian airline Blue Air. The deal covers the airline’s transport network from Dublin to Cyprus and from Lisbon to Copenhagen. In Germany, Blue Air is represented in Munich, Stuttgart, Cologne and Hamburg. Cargo capacities will be marketed by Leisure Cargo. “Our new offer is especially focused on time-critical, quickly perishable or high-value cargo for which transport by sea or road is no longer an option,” said Zeitfracht managing director Wolfram Simon. Leisure Cargo managing director Thilo Schaefer added: “With Blue Air, we gain a new airline that fits into our portfolio perfectly and complements the geographic coverage of our services in Eastern Europe.”

Slot booking for FCS and LUG FROM 15 May, a prior slot booking is required for all loading and unloading at the warehouses of Frankfurt Cargo Services (FCS) and LUG. Only trucks with a confirmed slot will be assigned to a ramp, and the slot must be booked online via the Fair@Link ramp slot system. Drivers arriving without a confirmed slot must book one on-site in the freight office, but they risk a lengthy waiting time. The move was decided in co-operation with Fraport and the Freight Forwarding & Logistics Association of the States of Hesse and Rhineland-Palatinate (SLV). FCS and LUG decided to take this measure in response to long waiting times for freight carriers experienced in late 2017, caused by high cargo traffic at Frankfurt. SLV managing director Thorsten Hoelser explained that traffic congestion in the last quarter of 2017 made it clear that all parties involved in the process needed to work together to solve the problem. An important step is the use of a dock management system like that already used by FCS and LUG. The two companies have been also started using the same compatible software.

aircargoweek.com

ACW 14 MAY 2018

luxury & Valuable cargo

When discretion and confidentiality is everything

still accommodate around 80-100 hand carry movements a year,” says Lo.

he global market for hard luxury goods has been gaining noticeable impetus over recent years. With the rising presence of branded products, fuelled by the significant increase in consumers’ disposable income, this market is likely to continue witnessing strong growth over the next few years. Companies such as LVMH, Giorgio Armani, Swatch Group, Bulgari, Ralph Lauren and Tiffany & Co are behind the global market for luxury goods. Other forms of cargo that are considered high value include precious metals, stones and high value jewellery, gold, bullion, bank notes, stamps, antiques, fine arts and museum artworks. However glitzy and desirable the product, IATA has a prosaic definition of what constitutes a high value product. It is simply an item that is valued at more than $1,000 a kilo. These are exactly the high value luxury and valuable goods defined as “theft attractive goods” in the supply chain.

In the frame

Works of art, masterpiece paintings or the most contemporary of sculpture, represent a fair slice of valuable and luxury items moved by air. London-based freight forwarder Momart has developed a speciality in moving objet d’art for both personal and commercial clients. “In respect to airfreight services, we mainly offer priority/ must-ride shipments with witness load and full supervision provided by a dedicated Momart airport supervisor from delivery through to loading and departure,” says Momart, airport and security manager, Anthony Lo. “We have a dedicated airport team that additionally to witness load and tarmac supervision also provides arrival services and support and direction with customs requirements.” Clients requiring airfreight services can include private col-

ACW 14 MAY 2018

Art for art’s sake

lectors, public institutions, corporate collections, commercial galleries and auction houses. “Very often, those groups of clients work together, for example an institution lends an artwork from a private client or a private collector buys a new artwork from a gallery or an auction house,” says Lo. “We can be contacted with an enquiry for art transport by all parties and this depends on individual agreements between the buyer and seller or the lender and the institution.” The forwarder books over 700 airfreight shipments a year, with the majority carried in the cargo hold. An on-board hand carry shipment, handled by a dedicated courier is quite costly so a lot of institutions are beginning to cut back on this type of service; but there are still some who find it safer to carry the works over palletising at cargo. “Cargo is by far the more popular and cheapest option but we

aircargoweek.com

Given the nature of the shipments Momart handles, each shipment is bespoke and there can be no off the shelf service. “Art is not a standardised ‘product’, it’s hard to apply standardised measures to shipping it. We always have to asses a number of criteria such as type of artwork, its size and weight, its age and value, what is it made of, what type of protection does it require and how can it be packed? Additionally to answering those basic questions, we also have to consider the modes of transport and their restrictions. “Will this particular artwork be able to travel on a commercial plane or, because of its size or weight, will it require a cargo freighter? Is airfreight the best option or would road freight or sea freight be more suitable? On top of this we also need to analyse customs regulations and restrictions,” says Lo. “Every day is different and can be exciting or scary but rewarding once complete. At the airport we only ever see cases so there is not much glamour at 3 am in a cargo shed in the middle of winter. “Air cargo warehouses are busy places where every minute is precious. We still encounter issues with carriers who do have processes in place. “That is why having a member of the Momart airport team onsite to oversee all movement is highly recommended. Some airlines now have artwork tariffs in place, which can be confusing. Having to know the tariffs, operating procedures and little quirks of all the different airlines can be a headache.”

LUXURY & VALUABLE CARGO

Security like clockwork for Swiss WorldCargo

iven its banking and auctioning background and very high wealth, it comes as no surprise Switzerland attracts much luxury and valuable traffic, both inbound and export. As a result, Swiss WorldCargo ships a variety of valuable goods around the world every day. And while “the valuable industry traditionally bring to mind images of banknotes and precious metals such as gold, we also ship luxury goods, precious documents, and even works of art,” says Swiss WorldCargo senior manager vertical industry precious commodities, banking and luxury goods, Milo Gerisch. “For our shipments and values, we’re proud to be a part of the Swiss economy. For instance, as the watch industry continues to recover, including a 2.7 per cent increase from 2016 to 2017, we are happy to have the opportunity Gerisch to ship and deliver the high-quality, high-design mentality that makes Swiss watches an integral part of Switzerland’s luxury economy. Likewise, as many refineries are located in, or have a stake in, Switzerland, this powerhouse industry offers myriad opportunities for global shipments. “To better understand this industry segment, it is important to note that the “value” component in valuables is ultimately subjective, and derived from the needs of our customers and end-customers. “Through our vertical approach, Swiss WorldCargo has established a focus on not just forwarders, but also end-to-end shipments in the valuables space – meaning that we have to ensure that we have the right people and deep industry knowledge and expertise in place to help ensure smooth deliveries. This vertical approach acknowledges the diverse wishes and needs along the supply chain, and ultimately, is how our products arrive at a wide variety of places – whether it be directly with customers or to global trade shows such as Baselworld.” At Swiss WorldCargo, the shipments of valuable products are

completely separated from regular shipping and typical cargo stream operations. When Swiss WorldCargo ships high-value goods, it uses its SWISS Valuables product offering “A combination of various factors underlines our SWISS Valuables product – including timing, security and partnerships. Trust is the key element among these partnerships, which again, extend throughout the supply chain. For instance, Cargologic, our longterm, trusted partner at our hub in Zurich, plays a crucial role in ensuring safety during our ground handling,” says Gerisch. On the ground, the carrier claims to have the shortest Zurich transfer times, some of the quickest in the industry, that ensure that high-value goods are shipped with quick ease. As part of its brand promise, the SWISS Valuables package includes dedicated personnel delivering products directly to aircraft, sealed boxes for transportation, close supervision of loading and unloading procedures, and storage in highly secured and monitored facilities. Gerisch says: “Our satisfaction lies in knowing that many of the national values of Switzerland – safety, security and punctuality

– extend to Swiss WorldCargo’s global network. Only our stations which have met the requirements of a strict audit are qualified within our network to handle our premium product, SWISS Valuables. In this way, we can ensure that the highest quality handling standards meet the required level of security and discretion, and ensure that [the client’s] product will arrive safely.

DHL in tune with Leipzig Gewandhaus Orchestra AS official logistics partner for the renowned Leipzig Gewandhaus Orchestra, DHL ensures the secure transport of the orchestra’s fragile, valuable instruments. The orchestra’s latest tour started in October 2017 and took in Baden-Baden, Germany, on before traveling on to Austria, Japan and Taiwan. DHL Trade Fair & Events, a unit of DHL Global Forwarding, Freight, supported the extensive tour, which will took the orchestra across Europe and Asia for 17 special concerts, debuting in London in October and playing its finale in November in Taipei. The tour’s concert repertoire comprised works premiered by the Gewandhaus Orchestra over the course of its 275-year history in Leipzig. DHL has been taking care of logistics for the Gewandhaus Orchestra for over 10 years. Concert logistics demands a substantial amount of expertise: around six tonnes of freight must be transported from one venue to the next not only securely but on time – often from one day to the next. The orchestra’s cargo included over one hundred valuable musical instruments. Not only were the individual items highly sensitive to their environment but some are one-of-a-kind pieces that cannot be replaced. In order to protect the instruments from damage, they are transported in temperature-controlled containers which keep the contents at a constant 18-20°C. DHL Trade Fairs and Events product manager, Gregor Klammer knows everything there is to know about the requirements for the correct transport of these sensitive instruments: “They must get to their destination on time without being subject to any significant transport shock or fluctuations in temperature. If the valuable instruments are allowed to get too warm or too cold, they are susceptible to damage – a risk we avoid with the help of temperature-controlled transport containers. Often the instruments are required to change location on a daily basis. And on rest days, we bring the instruments to the musicians’ hotel to allow them to practice.”

aircargoweek.com

ACW 14 MAY 2018

AFRICA

Dramatic growth forecast to continue into 2018

usiness for multi-platform industry service provider, HAE Group in Africa increased by over 20 per cent in 2017 with Sub Saharan business making up for uncertainty in West Africa, president – Middle East & Africa, Peter Kerins tells Air Cargo Week. He says key locations for the company that provides services including charter and GSSA solutions have performed “dramatically” with Sub Saharan business routed via Johannesburg seeing tonnage Kerins increasing by approx-

imately 50 per cent. HAE saw a “marked increase” in export tonnage in 2017, something Kerins says looks to be continuing. Kerins says: “Our import business into Africa both sold in the international markets and through our consignee sales program reaped excellent rewards for both our group and our airlines partners both in and out of the region.” Business in 2018 has continued where 2017 left off, with HAE moving over 1,000 tonnes per month inbound and outbound in Africa as it continues to expand services. He comments: “We foresee continued growth as we expand services in and from Nairobi, where we recently opened and office as well as in Johannesburg and other key destinations. We are projecting growth for the rest of 2018 to surpass those of 2017.”

Over in the East, Addis Ababa and Nairobi act as access points to the Central and Eastern Africa markets, particularly for charter and part charter projects into difficult to reach locations. In the West, Lagos is the traditional access point into the region. Kerins says: “Given the downturn in Oil and Gas over the past few years, we now where possible offer direct services through our Liege office.” North Africa is an area HAE is seeing growth both on an inbound and outbound basis, with the economic and governmental stability in the region meaning it is of interest to the group. HAE does not open offices at random, Kerins points out: “I think we have always looked at areas where our wider group have require-

ments and assess any new locations on solid business cases, rather than open offices just to have a dot on a map.” Africa has a lot of potential for HAE but challenges such as finding the right people, the right countries and security for investments and business ambitions continue. Kerins says numerous countries make it difficult to have a wholly owned entity in the country, with banking, technology and regulation are key challenges. He says: “Many authorities are still very protective over new companies coming into their markets, particularly in the aviation sector. I would say the financial risk factor in a lot of locations would be medium to high.” Though Africa remains a challenging market, Kerins is confident about the future for HAE, having invested in locations, employment, businesses and partners. HAE has provided clients in Africa with a transparent platform back up with IT investment. Kerins says: “Central to any success is to offer something different in the market, and we believe through our flexible range of services we bring something to our clients that gives them value, but also visibility and consistent service.”

THROUGHOUT its history, the French city of Marseille has always been an important trading centre, and the airport is helping retain this position by acting as a gateway to North Africa. Marseille Province Airport cargo manager, Jean-Marc Boutigny says North Africa “is full of energy with growing demand”, and trade is growing fast, particularly with Algeria. He says Marseille is handling more and more American, Japanese and Chinese freight in transit to Algiers or Hassi Messaoud. A new weekly Marseille-Algiers-Marseille freighter route has been confirmed in cooperation with Icar Aviation and Air Algérie Cargo. Boutigny comments: “This new freighter service will start on 3 July 2018 thanks to a brand new B737-800F chartered by Icar Aviation to Air Algérie Cargo. It is dedicated to all freight forwarders involved in transportation from and to Algeria. “We are all very excited to develop this new reliable logistical bridge between Marseilles and Algiers.”

Algeria is Marseille’s main trading partner with 2,500 tonnes of general cargo last year, followed by Tunisia with 2,000 tonnes of mainly express cargo. A lot of drilling parts and industrial spare parts fly to Algeria and most traffic into Tunis is for DHL Express. Out of North Africa, the main goods from Casablanca in Morocco include fishes, fruits and vegetables, crayfish from Annaba in Algeria and dates from Biskra in Algeria. North Africa continues to be a focus area, with historical partners including Air Algérie Cargo, Icar Aviation and Tunisair Fret. Boutigny says: “We work together to promote new markets, new economical areas, to find solutions to short the time of transportation and facilitate the rules. It’s a real ‘’go between’’ relationship to go forward.” He remains confident about the future of North Africa, saying: “As the Western Mediterranean cargo hub, Marseille Provence Airport will be ready to support all its customers to propose ‘’tailor made’’ services.”

Much of HAE’s business in Africa is concentrated around three locations feeding into other areas. Johannesburg is the link to Sub Saharan Africa providing services not only to the South Africa market but bonded services across the region. The Neutral Wholesale Airfreight business located in Johannesburg also acts as a gateway for outbound volumes.

Location is important

Marseille acts as gateway to North Africa

ACW 14 MAY 2018

aircargoweek.com

TRADEFINDER Airlines

Online Services

Training

Turkey

GSSAs United Arab Emirates

Freight Forwarders Hong Kong

USA

Freight Forwarders United Arab Emirates

Industry Event

India

aircargoweek.com 11_14 May 2018.indd 1

ACW 14 may 2018

11 03/05/2018 16:00

Tabloid page bled.indd 1

17/04/2018 14:20