ACW 10th October 16 by Azura International

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The weekly newspaper for air cargo professionals Volume: 19

Issue: 40 10 October 2016

FTK rise, but overcapacity still plagues air cargo

he air cargo industry has improved since the slow start to the year, but load factors remain at historic lows and it continues to be affected by weak global trade, while political rhetoric is causing concern. The International Air Transport Association (IATA) says freight tonne kilometres (FTK) are up 3.9 per cent in August though capacity in available FTKs rose 4.1 per cent, pushing load factors down a further 0.1 percentage points to 40.8 per cent, keeping yields under pressure. The association says the capacity expansion has slowed as widebody passenger aircraft deliveries have slowed, with load factors stabilising at

admittedly historic lows. IATA director general and chief executive officer (CEO), Alexandre de Juniac (pictured) explains though air cargo demand has been strong, world trade volumes are struggling and political rhetoric advocating protectionism is concerning. The CEO says: “August numbers showed improvements in cargo demand. While this is good news,

ACE 2017 set to be biggest yet

the underlying market conditions make it difficult to have long-term optimism. World trade volumes fell by 1.1 per cent in July with no improvement on the horizon. “The current global political rhetoric in much of the world is more focused on protectionism than trade promotion. Economies need to grow out of the economic doldrums. Governments should be focused on promoting trade, not

Stands at air cargo europe – the world’s biggest air cargo industry event – are being sold at a record rate with 88 per cent already snapped up. The event is organised by Messe Munchen and will take place for the 8th time in Munich from 9-12 May next year and feature a trade fair and high-profile conference. Last year, 195 exhibiting companies from 37 countries occupied 11,000 square metres of exhibition space at air cargo europe and it was attended by thousands of people. 2017 is set to be even bigger and better with over 88 per cent of stand positions sold. Air cargo europe is part of transport logistic – the trade fair for logistics, mobility, IT, and supply chain management, which in 2015 was attended by 2,050 exhibitors from 62 countries and welcomed 55,438 logistics experts from 124 countries. Contact the AZura International sales team at sales@azurainternational. com or call +44 (0)1737 645777 to reserve a stand or for more information. Visit aircargoeurope.com for details online.

raising protectionist barriers.” IATA says Asia-Pacific cargo has seen strong FTK growth at 2.8 per cent compared to August 2015. North America grew at the fastest pace since the US seaport disruption in early 2015, up 5.5 per cent, though the strong dollar continues to hit exports. European airlines saw the largest increase in freight, up 6.6 per cent, helped by new export orders from Germany. The Middle East has seen its slowest growth since July 2009 at 1.8 per cent, due stiff competition on Europe-Asia routes. Latin America’s woes continue with FTKs falling 3.3 per cent due to economic and political problems, particularly in Brazil. Africa is being affected by overcapacity, leading to the load factor falling to 21.6 per cent, but FTKs rose 3.9 per cent.

Knudsen moves to new role

Swissport International has appointed Nils Pries Knudsen (pictured) as chief commercial officer (CCO) and he took on the new role from 1 October. The ground and cargo handling services firm says he continues to directly report to Eric Born, Swissport’s president and chief executive officer. Knudsen joined Swissport in January 2009 and has since been instrumental in taking the cargo division forward, most recently in the position of executive vice president of global cargo. In his new role, Knudsen will be responsible of further enhancing the commercial and sales strategy and drive profitable growth for ground and cargo handling. Born explains: “We are committed to further improve the focus on our valued customers and have therefore established the role of chief commercial officer at the group executive level.” Swissport handles 4.1 million tonnes of cargo a year on behalf of 835 client-companies in the aviation sector and is active at more than 280 stations in 48 countries across five continents.

demand for p2f’S HIGH AND PEMCO DOING NICELY

LOGISTICS SECTOR TO CUT CO2 BY 30% BY 2030 PARIS THE NEXT STOP FOR TIACA’S AIR CARGO FORUM TRENDS AND E-COMMERCE UP FOR DEBATE

Perishables centre opened in Bengaluru AIR India SATS Airport Services (AISATS) has commenced trial operations of its on-airport perishable cargo handling centre at Kempegowda International Airport in Bengaluru - set to be operational by the end of 2016. The 11,000 square metre facility, AISATS COOLPORT, is a joint venture between Air India and SATS, with a capacity to handle 40,000 tonnes per annum to cater for perishable commodities such as pharmaceuticals, fruits, vegetables, poultry, seafood and flowers. It has 17 dedicated cold rooms with temperatures ranging from -25 to +25C, and designed as a one stop shop for import and export processes with an integrated drug controller lab and plant quarantine inspection & certification office. AISATS chief executive officer, Mike Chew says the Indian economy needs upgraded infrastructure to cater for growth: “Keeping in view the significance of air cargo to the economic growth of the country, we truly believe that this dedicated state-of-the-art facility will play a vital role in supporting better trade facilitation, and will further boost the exports and imports of temperature-sensitive products.”

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NEWS WEEK Largest airfreight contract signed in Australia

antas Freight and the Australia Post Group have extended their international mail air freight agreement for another five years. This agreement sees Qantas Freight handle 12,000 tonnes of mail and parcels out of Australia each year. The Australia Post Group is the nation’s largest user of airfreight services, and the international contract builds on the five-year domestic airfreight agreement the two signed in June last year. This included the establishment of a dedicated domestic freighter fleet for the Australia Post Group, which became operational in July 2016. The total value of the contact with the Australia Post Group is in excess of $500 million Australian ($380 million) over five years. These agreements form the largest airfreight contract in Australia. Qantas Freight has been retained as the largest provider of airfreight services for the Australia Post Group and the group’s business e-commerce unit is StarTrack, whose chief executive officer and executive general manager for parcel and e-commerce services, Bob Black says: “This strategic alliance – combined with our global reach through existing partnerships with key ecommerce platforms, postal and freight providers – will help Australian

businesses and consumers buy and sell goods internationally with confidence, and complements our unrivalled domestic capability.” As well as continuing to fly international letters, the agreement includes the handling of international parcels on the Qantas Group’s 1500 flights each week. Interline agreements that Qantas Freight has in place with other carriers will give the Australia Post Group worldwide access. Qantas International and Freight CEO, Gareth Evans says it is a “substantial contract to secure,” adding: “This partnership sees the Australia Post Group and Qantas Freight well positioned to support the growing e-commerce industry which relies on airfreight to achieve express delivery of its steadily increasing volumes of international packages and parcels.”

Volga brings light to Zimbabwe

VOLGA-DNEPR GULF has brought power to Zimbabwe by transporting a 200MW diesel-fuelled power plant to Harare for power provider Aggreko. Ruslan International, the Antonov AN-124 joint venture between Volga-Dnepr Airlines and Antonov, was contracted to fly the 79 tonne shipment with Volga-Dnepr Gulf providing a full logistics support on the ground. The bulk of the equipment was shipped by sea and road from various hubs around the world but airfreight was considered the only option for transporting the switchgear equipment from Dubai.

LuxairCargo selects Hermes

CARGO handler LuxairCargo has selected the Hermes Hub Management System to support handling operations. The handler operates Luxembourg Airport’s Cargocenter and executive vice president, Laurent Jossart says: “Hermes does not only offer the high level of automation we were looking for but also guarantees the possibility to interface with our other existing systems. “These crucial aspects enable us to deliver integrated air cargo handling services to our customers while ensuring a sustainable business growth.” Hermes chief operating officer, Simon Elmore says: “The signing of LuxairCargo adds another major hub to our customer portfolio and is in line with Hermes’ strategic growth plans. We are proud to partner with such a renowned hub operator and are very excited to implement Hermes’ market hub management tools in Luxembourg in the near future.”

WorldNews

C.H. ROBINSON has expanded its Global Forwarding division by opening a new forwarding office in Vancouver, Canada. The forwarder says Vancouver is a strong commercial market, and was chosen as it aligns with the company’s organic growth strategy. DSV has established a new ‘solutions’ division in North America as it continues to grow its activities in the region following the acquisition of UTi. They have rebranded DSV as of 1 October 2016 and a new DSV Solutions organisation has been set up.

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NEWSWEEK Report determines opening Manston not viable

anston Airport is “very unlikely to be financially viable in the longer term and almost certainly not possible in the period to 2031” according to a report by AviaSolutions. The UK airport, which closed in May 2014 has been subject to a long running campaign to reopen it, with US investment firm RiverOak Investment Corp attempting to convince the local authority, Thanet District Council (TDC) that it is a suitable indemnity partner for a compulsory purchase order. TDC has refused to progress as it says RiverOak has not disclosed any material detail of its business plan for reasons of commercial confidentiality.

RiverOak Investment Corp has been trying to acquire the site since it closed in May 2014, and has been trying to use a development consent order to gain control, with the intention of turning Manston into a cargo hub capable of handling at least 10,000 air traffic movements per annum. Before Manston closed it was handling around 30,000 tonnes per annum, but had been losing more than £3 million ($3.8 million) a year while it was owned by Infratil, which sold it for £1 in 2013 to Manston Skyport, before it ceased operations on 15 May 2014. It was then sold to Stone Hill Park in September 2014, which wants to redevelop the site. In the report it says Manston was the sixth busiest cargo airport in the UK, representing about one per cent of the country’s total. The report says Manston was popular with shippers as it offered high quality handling services, but there were no strategic advantages using the airport. It concludes there is limited interest from the cargo industry to reopen Manston as a freight hub, saying: “There is no compelling reason to believe the airport would be able to generate appreciably more freight activity than previously, other than in the context of a shortage of airport capacity in the London area.”

Liege to be hub for NAS NETWORK Airline Services (NAS) has signed a new partnership with Liege Airport making the Belgian airport its hub for Africa and increase flights to Angola. NAS has moved over 90,000 tonnes of freight using Liege since May 2014 with its network linking the USA, Malaysia and Hong Kong to Europe. There are direct flights between Belgium and West Africa to Lagos and Luanda for the mining and oil industries as well as general cargo. Flights are operated by an Atlas Air Boeing 747-400 Freighter and a Western Global Boeing MD-11 Freighter, as well as cooperation agreements with Allied Air to Nigeria, TAAG for Angola and Astral Aviation in Kenya. NAS commercial director, Andy King says although “business is challenging” with excess capacity on many routes, NAS is pleased with the support it gets from Liege and its cargo focus enables it to meet the challenges. Liege commercial director, Steven Verhasselt says it wil open a new apron and a temporary warehousing structure to stock certain pallets in November to boost operations.

Drones tested to reach remote locations UPS has begun testing the use of drones to make commercial deliveries of packages to remote or difficult-to-access locations – working with drone-maker CyPhy Works. The companies have staged a mock delivery of urgently needed medicine from Beverly, Mass. to Children’s Island, which is about three miles off the Atlantic coast. The drone flight advances an investment made by The UPS Strategic Enterprise Fund in CyPhy to gather information about drone uses and capabilities. UPS senior vice president of global engineering and sustainability, Mark Wallace says: “Our focus is on real-world applications that benefit our customers. We think drones offer a great solution to deliver to hard-toreach locations in urgent situations where other modes of transportation are not readily available.” Last month, the US Federal Aviation Ad-

ministration, issued new rules that expanded the uses of drones in commercial applications. Operators must adhere to important safety regulations. UPS believes these new rules are a step in the right direction and says it intends to keep working closely with regulators to stay on the right path.

FAA bans lithium battery manufacturer THE Federal Aviation Administration (FAA) has banned lithium ion battery manufacturer, Braille Battery from shipping its products by air due to not complying with Hazardous Materials Regulations (HMR). The FAA says it took the action because the Florida based firm failed to ship lithium ion batteries in accordance with appropriate regulations and continued to offer products for air transport that were not properly tested despite warnings. The US Department of Transportation’s FAA says: “The FAA determined that Braille Battery’s overall conditions and practices constitute an imminent hazard.”

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The agency also issued a Safety Alert for Operators (SAFO) to warn airlines about the risk some Braille Battery lithium ion batteries could present when accepted and transported as air cargo. The SAFO includes recommendations that operators take as control measures to prevent Braille batteries from being a risk to their systems and models known to have been UN tested. The FAA says if Braille Battery does not comply with the order it will be subject to criminal prosecution and civil penalties of up to $179,933 for each violation, and for each day they are found to be in violation.

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NEWSWEEK Boeing predicts 747 still has a future despite slowdown in production

oeing Commercial Airplanes is hoping it can increase 747 production to higher than six per year, and expects demand will grow in the future as older aircraft are retired, vice pres-

ident and general manager 747/767 program Bruce Dickinson says. Speaking at a press conference at the Boeing Delivery Center in Everett on Thursday 29 September, which Air Cargo Week attended,

following the delivery of Cargolux Airlines International’s 14th Boeing 747-8 Freighter, Dickinson explained why he felt the 747 still had a future. He says the 747-8 remains popular on trans-Pacific routes while older 747-400Fs and MD-11Fs will be heading out of service in the near future. Dickinson says: “Freighters play a key role on major East-West markets, the trans-Pacific sees a lot of freighters, there are 747-8s everyday into North America.” He says there are 520 large freighters in service, with older 747s likely to be retired sooner due to regulatory reasons and age. “747-400 production will be heading out of service in five to six years, -400 conversions will probably come out sooner and MD-11s are heading out sooner than -400s. The only large freighter left in production will be 747-8s and 777s,” he explains. Dickinson says that since 2011 Boeing has

reduced the weight of the 747-8 by 9,000lbs, increased fuel efficiency by 3.5 per cent and lowered operating costs by two per cent. Boeing has delivered 109 747-8s including 69 freighters, and Dickinson says the aircraft is 16 per cent more fuel efficient than the 747-400, while reducing emissions by 16 per cent with a 30 per cent smaller noise footprint. Boeing slowed 747-8 production to 0.5 aircraft per month this year, and Dickinson hopes this will rise in the near future. He says Boeing would prefer not to produce so few but the low fuel prices means airlines are delaying fleet replacement programmes, adding: “We see the need for large freighters such as the 777 and 747, we don’t think there will be anything else until 2025 when the 777X comes into play.” He continues: “We are confident we can fill that low production rate. We have a pretty good feeling that it is sustainable. We don’t want to go much lower but we wouldn’t rule it out.”

Cargolux welcomes 14th 747-8F

Cargolux Airlines International has taken delivery of its 14th Boeing 747-8 Freighter at a ceremony at Boeing Commercial Airplane’s Everett factory near Seattle in the US. The aircraft, registration LX-VCN has been named ‘Spirit of Schengen’, was handed over on 29 September in a ceremony attended by journalists including Air Cargo Week, having brought forward delivery to cater for predicted extra demand during the peak season. Cargolux president and chief executive officer, Richard Forson says: “I see the 7478F as an industry stalwart; this aircraft has already proven its worth for Cargolux in five years of reliable and efficient operation and it will continue to drive growth and revenues for Cargolux in the years to come.”

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Boeing Commercial Airplanes vice president of European Sales, Monty Oliver says: “The 747-8 Freighter has proved to be a tremendous addition to Cargolux’s fleet, providing increased capacity, more range and outstanding economics. “We congratulate Cargolux on this latest delivery and are honoured that the 747 remains the mainstay of its all-Boeing fleet.” Cargolux was the launch customer for the 747-8F, having ordered 10 units in 2005 and taking delivery of the first one in October 2011 and the airline now has 26 aircraft in its fleet. The 747-8F offers 16 per cent more revenue cargo volume than the 747-400F and has a maximum range of 8,130 kilometres, with 16 per cent lower ton-mile costs than the 747-400.

3rd Budapest freighter for Qatar

atar Airways Cargo has added a third weekly service to Budapest Airport - after seeing strong demand. The third Airbus A330-200 Freighter with over 60 tonnes of capacity started to operate from 7 October, adding to the existing Thursday and Sunday A330-200F services and daily Airbus A320 flights with bellyhold capacity it operates. Budapest Airport chief executive officer (CEO), Jost Lammers says: “We are delighted to see the success of Qatar Airways Cargo operations, we welcome the frequency increase which is a quick response to market needs in Hungary and Qatar. The operations of Qatar Airways Cargo fit perfectly into our airport’s strategic plans to become a leading cargo centre in Central-Eastern Europe.” Qatar Airways Cargo CEO, Ulrich Ogiermann says the initial twice-weekly service has been popular with customers, with high loads of high-value commodities including automotive parts, machinery and increasing volumes of temperature controlled pharmaceuticals. He adds: “Budapest remains an important strategic hub for Qatar Airways Cargo, and our services maximise the potential of its geographical position in Eastern Europe.” Between January and August 2016 Budapest’s cargo volumes rose 14.8 per cent to 70,268 tonnes.

NEWS WEEK Hactl hails truck program

THE Hong Kong Air Cargo Terminals Limited (Hactl) says the latest phase of its truck management program has slashed queues, speeded up processing times and enhanced security at its SuperTerminal 1. Hactl’s terminal receives over 2000 trucks per day, delivering exports and collecting imports, and says manned check boots at vehicle entry points have been replaced with automated lanes that register trucks, and together with the doubling of entry lanes, these have eliminated queues at peak hours. Hactl chief executive, Mark Whitehead says it has transformed vehicle movements and speeded up processing times for drivers and their vehicles, making made “queues a thing of the past”, and enhancing security through additional validation of visitors.

e-AWB penetration up, but off target

THE International Air Transport Association (IATA) says the electronic air waybill (e-AWB) penatration rate reached 40.5 per cent in August. This is still some way below the target it set of 56 per cent by the end of the year, but is a 0.9 per cent increase on July, when the penetration rate was 39.6 per cent. In August, the total e-AWB volume was 623,092, up on the 614,652 in July. The penetration rate has risen 4.1 per cent since December in 2015, when the penetration rate was 36.4 per cent and totalled 524,635 in volume. In August, the top airport by e-AWB volume is Hong Kong International Airport with penetration rising to 67.8 per cent from 67.5 per cent while the highest penetration rate is Dubai International Airport with 89.8 per cent, which is down on July when it was 91.5 per cent. Top airline by e-AWB volume is Cathay Pacific though penetration was down to 70.9 per cent, from 71.5 per cent in July and top carrier by e-AWB penetration rate is flydubai with 100 per cent. Top freight forwarder by e-AWB volume is DHL Global Forwarding with a penetration rate of 51.5 per cent and by e-AWB penetration Hellmann Worldwide Logistics with 64.2 per cent.

2nd freighter service launched by Air Canada

AIR Canada Cargo is to add a second weekly service to South America with an additional flight to Bogota and Lima. The Boeing 767-300ER Freighter services operated by Cargojet were launched in June with flights from Toronto to Lima via Atlanta and Bogota, as well as Toronto to Mexico City via Dallas Fort Worth. Air Canada will start a second Toronto – Atlanta – Bogota – Lima – Toronto flight on 9 October. It will leave Toronto at 12.00h, arriving in Atlanta at 17.15h, before leaving again at 18.15h and landing in Bogota at 21.55h. From there it will leave Bogota at 23.25h and arrive in Lima at 02.25h, before departing the Peruvian capital at 03.40h and returning to Toronto at 16.00h. Last month, Air Canada Cargo also announced a range of new bellyhold routes to Europe and Asia, which will further grow its capacity.

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P2F CONVERSIONS

Demand for P2F’s high and PEMCO doing nicely

he strongest demand for passenger to freighter (P2F) conversion aircraft is coming from Asia and Europe, according to PEMCO’s director of conversion programs, Mike Andrews (pictured). There has been a wave of new conversion programmes announced this year, as in a tough airfreight marketplace many air cargo carriers are opting for conversions as they are proving more cost effective. Andrews tells Air Cargo Week the market is strong and there is intense competition with multiple supplemental type certificates on narrowbody freighters, adding: “The market is very competitive, but there is enough business to go around.” For PEMCO, he notes China is arguably one of the most important markets and SF Airlines

is one of its long time customers whose Boeing 737 fleet consists of 100 per cent PEMCO-converted aircraft. PEMCO has carried out 16 conversions for SF while three more are set to be delivered to the fast growing courier carrier’s cargo fleet by the end of 2016. This year, PEMCO also tied up a deal to assist Chinese-based Guangdong Long Hao Aviation Group’s signing an agreement for a 737-300 P2F conversion with options for additional aircraft. It will be converted by PEMCO’s partner, STAECO in Jinan Shandong, China, and is scheduled for redelivery in October. Andrews explains that an average PEMCO conversion is in line with average market costs and turn times are 90 days from induction to redelivery and he notes as lots of aircraft are being retired, it means there are a lot of pas-

senger aircraft being replaced, which makes the feedstock a “rich environment.” However, Andrews says PEMCO sees the 737300 and -400 feedstock slowing down, making freighter customers turn to the NextGen aircraft. PEMCO has added new services to support converted aircraft operators and MRO customers. These include training for liaison engineers, customised electronic weight and balance load charts, certification consulting services, and

MRO consulting services. However, he says carriers are reaping the rewards of PEMCO-converted aircraft: “Operators are getting the most structural payload and total useable volume, best-in-class fuel efficiency due to the no trim design, a network of strategic partners around the world, and multiple variants (full-freighter, quick change, and combi) to fit their needs. There are still PEMCO freighters flying that were converted in 1991.”

IPR redelivers LCD to Summit Air IPR Conversions has re-delivered its first large cargo door (LCD) and structural tube conversion to Summit Air based in Yellowknife, Canada – an ATR72-202 Freighter. The company says this was converted by IPR’s partner ASI-Maintenance in Toulouse-Francazal, France, and marks the first IPR-converted LCD aircraft since the the purchase of the supplemental type certificate from Alenia last year. Summit Air has also booked an addition-

al ATR72 LCD conversion slot for 2017 and is considering enlarging its ATR fleet in the future. The conversion, MSN444, is equipped with an Ancra Cargo Loading System (CLS) allowing five 88 x108 containers to be loaded. IPR also offers ABZ containers specially designed to optimise the additional volume provided the IPR structural tube, increasing the containerised volume.

DHL 737-700 conversion for IAI

ISRAEL Aerospace Industries (IAI) is developing a new supplemental type certificate (STC) cargo conversion for the Boeing 737-700BDSF. A first ever prototype aircraft is under conversion from passenger to full-freighter (P2F) configuration at IAI’s facility, including the installation of a wide cargo door. All work will be performed at IAI’s Bedek Aviation Group facilities in Israel and STC approval is expected during the fourth quarter of 2016.

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IAI will convert the first 767-300 aircraft with winglets from P2F configuration, for DHL. The aircraft is at IAI, and is undergoing a series of tests, both on the ground and in flight, and is planned to receive the modified STC (for an aircraft with winglets) in February 2017. IAI designed the B737-700BDSF can carry a total of 10 unit load devices and it can carry a payload of around 20 tonnes. Bedek Aviation Group corporate executive vice president and general manager, Yosi Melamed says: “IAI is proud to add the converted 737-700BDSF to the successful portfolio of IAI developed STCs for cargo conversions of passenger aircraft and we expect B737-800BDSF conversion STC approval a year from the B737-700BDSF STC approval, with 12 positions and the ability to carry up to 52,000 lbs.”

LUXEMBOURG

Logistics sector to cut CO2 by 30% by 2030

he Luxembourg logistics and transport sector is ambitiously aiming to reduce CO2 emissions by 20 per cent by 2020 and 30 per cent by 2030, Cluster for Logistics (CLT) Luxembourg senior manager, Malik Zeniti (pictured) tells Air Cargo Week (ACW). Zeniti says CLT was encourage to support the introduction of an international environmental Sustainable Logistics label by the country’s minister for sustainable development and infrastructure, Francois Bausch. He says: “Over 450 forerunners in Europe have defined an action plan or roadmap to decrease emissions by at least 20 per cent to obtain savings while delivering a measurable impact and actively doing something for the environment fighting global warming.” Zeniti tells ACW the industry needs to reduce emissions and companies who do so will see benefits including lower energy consumption, lowering costs. “Companies that have an action plan to make savings, while mitigating environmental pressure in their business plan, will have a competitive edge and a roadmap to

Efficient fleet for Cargolux

guide their investments, while considering all stakeholders.” The Netherlands initiated a voluntary programme in 2007 that has been adopted by the neighbouring countries of Belgium, Luxembourg and Germany, which Zeniti says has made “a common label in a blue banana type corridor” available. He also notes: “We in Luxembourg like to be in the economic driver seat and share the believe that investments into a Lean and Green programme is an economic way of gaining experience and be compliant before measures get mandatory.

“This approach provides competence from the clients perspective and hence stability allowing to share the burden to stay ahead of countries, who prefer to wait and see.” In addition, the international Lean and Green community has launched Lean and Green Europe to offer internationally active companies a harmonised label. Zeniti explains to ACW: “This allows to build a better more sustainable world together, by simply addressing regulatory pressure in a leaner harmonised way and engage cross-border collaboration. Such an international competitive benchmark should give an advantage to achieve Lean and Green performance.”

Cargolux Airlines International is showing its commitment to the environment by operating the most environmentally friendly and energy efficient aircraft available, manager environmental management Geraldine Guebel tells Air Cargo Week (ACW). The airline operates a fleet of Boeing 747-8 and 747-400 Freighters, and in addition to operating the most efficient aircraft available, Cargolux also seeks to reduce the environmental impact of all operations. Guebel says: “We have also sought to mitigate its environmental impact at our offices and facilities with energy savings, waste reduction and recycling and the strengthening of an environmental awareness among our staff.” From here, Guebel explains, it was a natural development to get involved with Lean & Green, and Cargolux became the first airline to carry the Lean & Green label: “Cargolux puts a high emphasis on being a good neighbour to the communities around its home base at Findel airport and Lean & Green, as a national initiative, plays an important role in our strategy and commitment.” Cargolux has the ambitious aim of reducing CO2 10 per cent per tonne kilometre, through its fleet improvement programme and fuel efficiency initiatives. The airline has just completed its fleet upgrade programme, which Guebel says supports Cargolux’s commitment to reduce CO2 emissions by 50 per cent by 2050 relative to 2005 levels. “A reduction in CO2 emissions can effectively be reached through the reduction in aircraft fuel consumption; to achieve this, we have just this month completed our fleet rollover programme that saw the introduction of the Boeing 747-8 freighter, the most fuel efficient and environmentally friendly aircraft in its class.”

Shaking off a bad reputation

Arthur Welter Transports is doing its part to shake-off transport and logistics’ bad reputation and show that it is an eco-responsible company through Lean & Green, administrative director Rene Gloden tells Air Cargo Week. He says Arthur Welter has been involved in environmental and ecological sustainability for over 15 years, and Lean & Green was an additional incentive to reduce CO2 emissions in the long term: “The L&G label helped our company to demonstrate that the bad reputation that transport and logistics have, is not justified and that Arthur Welter is an eco-responsible company and commits to develop our slogan ‘sustainable logistics and more’...beyond 2017.” Arthur Welter has a number of measures including reducing the percentage of empty kilometres from 14 per cent to 11. It is also investing in new technologies to reduce fuel consumption by 15 per cent. Gloden says: “The reduction of the CO2 emission in the transport sector is helping the industry to have a better carbon footprint.”

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TURKEY

Exhibitors keep faith in logitrans in its 10th year

xhibitors have kept faith in the logitrans tradeshow as it celebrates its tenth anniversary despite the difficult situation in Turkey. Logitrans will take place from 16 – 18 November 2016 at the Istanbul Expo Center, very close to Istanbul’s Ataturk Airport, the largest airfreight hub in the region. Organiser Messe Muenchen says that despite the difficult situation in Turkey, very few exhibitors have cancelled and it has gained new companies including Qatar Airways. Messe Muenchen member of the management board, Gerhard Gerritzen says: “Yes, we have had some cancellations. But on the other hand a high percentage of our established exhibitors are keeping faith with us. And we are even attracting applications from new international exhibitors.” “We are especially upbeat about the air cargo section, which is developing very well. For example, Qatar Airways is taking part, the first of the Gulf airlines to exhibit at logitrans, and that is further increasing the international scope of the show.” The 2015 show (opening ceremony pictured right) welcomed over 15,000 participants from 54 countries and 220 exhibitors from 22 countries. It also welcomed the PeriLog Conference for the first time to discuss the fresh produce market. Turkey exports over 3.5 million tonnes of fresh produce a year with around 17 per cent going to the Middle East. At this year’s show, there will be national pavilions for Germany, Austria and France, while a number of Turkish companies will be exhibiting, with representatives from other countries including Belgium, Finland and Poland. The airfreight sector will be represented by prestigious companies including Turkish Cargo, Lufthansa Cargo and Pegasus Cargo, who will be joined by Qatar Airways Cargo for the first time. This sector is continuing to grow as construction for the new Istanbul airport continues, which will be the world’s largest airport when it becomes operational in February 2018.

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The new airport, which is being built in the Arnavutköy district on the European side of Istanbul, and will relieve congestion at the existing hubs of Ataturk and Sabiha Gokcen. Ataturk will be closed down when the new airport is operational as its location within the city of Istanbul means there is no room to expand. The new airport will be built and opened in phases and will have six runways when it is completed, which should be

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before 2030. The Cargo/Logistics Center will be built over an area of 1.4 million square metres during the first phase, and expanded to 1.6 million square metres in later phases. It will offer up to six million tonnes of capacity in later phases and facilities will include parking for up to 30 widebody freighters simultaneously.

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ACF PREVIEW

Paris the next stop for TIACA’s Air Cargo Forum

he City of Lights - Paris – will be the stage for The International Air Cargo Association’s (TIACA) 28th Air Cargo Forum (ACF) & Exhibition and it is set to be the biggest yet. ACF will take place from 26-28 October at Porte de Versailles in the centre of the French capital and the nation’s logistics hub, close to the city’s most recognisable landmark – the Eiffel Tower and other sights. Paris is home to one of the busiest cargo hubs in Europe in Paris Charles de Gaulle Airport, which was ranked as the ninth busiest freight gateway in the globe last year by the Airports Council International. This year’s ACF is entitled Air Cargo Vision 2020: An open sky to innovation and the biennial event is set to welcome more than 3,000 airfreight decision makers and more than 200 exhibitors from around the world, who will network and address the principal industry challenges and also explore further business opportunities.

The conference will take place over three days and will feature a who’s who of speakers from across the supply chain including from airlines, freight forwarders, shippers, cargo handlers, IT

providers, airports and other parts of the chain. Sessions in the conference will include discussions focusing on e-business, multimodal challenges, the cargo hub of the future, as well as practical workshops on the new EU Customs rules and the latest on security regulations. TIACA’s secretary general, Doug Brittin (pictured) who is retiring from his role at the end of this year, explains: “TIACA represents all sections of the air cargo supply chain and the ACF is a unique opportunity for logistics decision makers to find ways of moving cargo more efficiently, meet new suppliers, and network. “This year’s seminar and workshop series will tackle trends affecting our industry and give up-to-date information on regulations affecting us all.” Among the exhibitors this year are Aeroports de Paris, Air Charter Service, Air Logistics Group, ATC Aviation, Atlas Air Worldwide Holdings, Boeing, Brussels Airport, ECS Group, Emirates Skycargo, Hartsfield-Jackson Atlanta International Airport, Incheon International Airport, Manchester Airports Group, MasKargo, Turkish Cargo, Unisys, United Airlines, Volga-Dnepr Airlines and Worldwide Flight Services.

Centre stage for shippers’ SHIPPERS’ will be an integral part of The International Air Cargo Association’s (TIACA) 28th Air Cargo Forum (ACF) & Exhibition from 26-28 October at Porte de Versailles, in Paris. The Global Shippers’ Forum (GSF) will hold workshops as shippers take the spotlight and it will welcome shippers from across the globe, and host a pavilion. GSF members will also benefit from access to TIACA’s one-to-one meeting scheduler, CargoLinX, which is new for 2016, giving forwarders, airlines and cargo service providers from around the globe the ability to set up to 30 25-minute meetings. GSF secretary general, Chris Welsh (pictured above) says: “The GSF represents the interests of shippers globally and campaigns on the issues that most affect them. The GSF has taken the lead in air cargo industry cooperation and was a founder member of the Global Air Cargo Advisory Group (GACAG), established to enhance the air cargo product and to jointly campaign on key issues with regulators and key international organisations such as ICAO and WCO. “We greatly value our co-operation with TIACA and the ACF is an ideal opportunity for our members to network with suppliers and peers, and take part in practical workshops which will help them run more efficient supply chains.” Shippers will also feature heavily among the speaker line-up during the conference and will include Chanel Fragrances and Beauté’s head of transportation and customs, Pascal Meyer, and Tosoh Corporation supply chain manager, Lars J.T. Droog who will take part in a discussion on new manufacturing trends. On Wednesday, 26 October the free workshop run by GSF - ‘Connecting the links to a high-performance supply chain’ will be held and a panel will debate on how data, quality and interoperability are corner stones for the industry’s performance and how this will drive its future economic success. Panelist will include Welsh, Cargo iQ executive director, Ariaen Zimmerman (pictured below) and Panalpina global head of airfreight, Lucas Kuehner. On Thursday, 27 October the European Shippers’ Council (ESC) will also give a briefing on how industry and customers can work together for a smarter airfreight business. Former TIACA vice chairman, Enno Osinga will chair a debate and among those joining him will be ESC chairman, Denis Choumert, and Brussels Airport Company head of cargo, Steven Polmans who were both recently appointed to the TIACA board.

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ACF PREVIEW

Air cargo industry challenges top of the agenda

he International Air Cargo Association’s (TIACA) Air Cargo Forum (ACF) from 26-28 October at Porte de Versailles in Paris will feature conference sessions on a range of subjects and focus on the key issues in airfreight. Kicking-off on Wednesday, 26 October at 9am will be the opening plenary, where TIACA chairman, Sanjiv Edward (picured above) will welcome delegates to the event in the French capital. A debate will then take place on what are the most important issues facing the industry and how air cargo should prepare for the challenges of the next five years. TIACA’s secretary general, Doug Brittin will be joined by the International Civil Aviation Organization’s Dr Fang Liu and World Customs

Organization deputy secretary general, Sergio Mujica for the discussion. The second session Air Cargo: What lies ahead? will focus on the growth of e-tail and shifting consumer models and ask what will we see in the future? Jan de Rijk Logistics chief executive officer and TIACA vice chairman, Sebastiaan Scholte (pictured right) will be joined by Boeing’s vice president for marketing, Randy Tinseth; Airbus head of freighter marketing, Oliver Von-Tronchin; and Seabury Group senior vice president, Marco Bloemen. They will share their views on the challenges ahead to help shape business plans in the coming years. A session Disruptive Innovation – an inspirational roadmap for tomorrow’s

leaders will then ensue where topics likely to be covered include advanced robotics, RFID tracking, self-learning algorithms and optimisation, security and data products and integration. Unisys vice president for logistics solutions, Christopher Shawdon (pictured directly right) will be joined a panel including Air Canada Cargo vice president, Lise-Marie Turpin. After lunch, the new EU Union Customs Code (UCC) will be explained. The UCC will have an impact on businesses importing and exporting within the European Union and members of the panel will talk about the new rules and give advice on how to be compliant. Among the panelists will be Volga Dnepr-Airlines vice president, Vladimir Zubkov; KLM Cargo director of operational integrity and division safety and quality, Kester Meijer; and

FedEx Express Europe manager of customs regulatory affairs and clearance solutions, Brigitte Iconomoff. The last conference session of the day will be Multimodal Opportunities & Challenges in Europe. Panelists will discuss if sustainability is so important, why are multimodal developments so slow, and with increased night bans, rail developments and the flexibility of trucking - why still fly? Former TIACA vice chairman, Enno Osinga will chair the debate and be joined by the likes of European Shippers’ Council chairman, Denis Choumert and DB Schenker quality, security and environment manager, Tariel Chamerois.

Trends and e-commerce up for debate E-COMMERCE provides air cargo with a significant opportunity and day two on Thursday, 27 October of the Air Cargo Forum will start off with a debate on the sector. The session e-Business Challenges will focus on how the industry must reinvent itself to rise to the challenges of e-commerce, which is expected to hit $2.3 trillion globally by 2017. Panelists will gives their thoughts on how airfreight can be faster and smarter when it comes to technology and ask what are the options, where are the bottlenecks and what should the industry be doing to improve. Kale Logistics chief executive officer (CEO), Amar More will chair and be joined by a panel including IATA’s global head of cargo, Glyn Hughes; FedEx managing director, Frank Newman; and Air France-KLM Cargo and Martinair Cargo e-freight project manager, Jean-Louis Salfati. After lunch, the session Manufacturing and Market Trends that will Shape the Industry will take place and discuss how a blurring of the industrial and the digital revolution is forcing huge developments in manufacturing, driven by disruptive technologies, the industrial internet advanced manufacturing, and big data analysis.

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Agility Logistics CEO, Essa Al-Saleh will chair a discussion, which will centre on how the air cargo industry must stay agile and adaptable to keep up with the pace of change and make the most of the opportunities. Panelists will include Global Shippers’ Forum secretary general, Chris Welsh; Tosoh Corporation manager of supply chain and general affairs, Lars J.T. Droog; and Chanel Fragrances and Beaute head of transportation and customs, Pascal Meyer. TIACA chairman and head of cargo business at Delhi International Airport, Sanjiv Edward will then chair the last session of day two - The Cargo Hub of the Future. A panel will discuss with him what role will the next-generation air cargo hub play in supporting the industry as it rises to the challenge of a changing e-business landscape, asking what new technologies will be needed and how airports can be smart hubs. The final day on Friday, 28 October will see two sessions held – the first will be Embracing the Cloud, where a panel will debate what Cloud looks like for air cargo, what does it mean and what are the advantages. Lastly, a session on Pre-Loading Advance Cargo Information (PLACI) will see experts looks at the most up-to-date information and explain the impact on the supply chain. TIACA secretary general, Doug Brittin will chair and among panelists will be The Airforwarders Association’s director, Brandon Fried (pictured).

TRADEFINDER Airlines

Airports

Cargo Handling

Turkey

Lithuania

United Kingdom

Freight Forwarders Hong Kong

Spain

Freight Forwarders India

Iraq

United Arab Emirates

Industry Events

Freight Forwarders USA

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