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WORLD AIRPORTS .COM ACW Digital is sponsored by FREIGHTERS.COM
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TECHNOLOGY made by Whatever can be digitized, should not remain manual. For that you have the Cargo Digital Factory. Not everything can be automated. For that you have ECS Group and its services.
The weekly newspaper for air cargo professionals No. 1,167
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14 FEBRUARY 2022
Walker Logistics to send C-47 into the sky ...
NEW YEAR, NEW ABILITIES FOR ECS GROUP
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CS Group has introduced the second pillar of its Augmented GSA (general sales agent) concept, ‘New Abilities’. The Group says it will offer a unique deck of ten service modules to support
air cargo clients around the world - individual support options covering “a hitherto unmatched service scope”, a set of à-la-carte products available to customers with or without an ECS Group GSA contract.
Adrien Thominet, ECS Group executive chairman, explained: “The air cargo world is undergoing massive disruption – something that was already becoming visible prior to the pandemic. Digitalisation as well as emerging digital platforms, ever-developing safety and security regulations, the e-commerce boom, greater cargo community collaboration, multimodal… All these factors and more are leading to changes in age-old air cargo processes. The traditional GSA model is no longer enough. He continued: “Our ambition, as the leading worldwide GSSA (general sales and service agent), is to offer maximum support to our customers in this changing environment, as and where they require it. We have therefore spent the past three to four years committed to structuring our widespread expertise and improving and developing innovative, high value-added service modules. With our New Abilities, we provide a comprehensive set of service solutions that can be purchased individually, whether or not the customer has a GSA contract with us.” He described the ’All-In’ module as: “An improvement on ECS Group’s established Total Cargo Management Solution, covering the full scope of cargo processes from sales, marketing, revenue optimisation, operations, interline management, claims handling, all the way through to chartering operations. “Yet, that is just one of the ten New Abilities. Single services, such as ‘Quality Stars’ offering back-office data administration, or ‘Optimum’, assisting airlines in maximising their cargo revenues, are also available alongside modules that have never before been offered by a GSA. ‘ECS Inside’, for example, supports staffing requirements, or ‘Brainflow’ consultancy services, and ‘Spotlight’ for comprehensive marketing concepts.” All ten New Abilities will be introduced over the coming weeks.
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INSIDE
UKRAINE CRISIS CONCERN ... MANUFACTURERS are increasingly concerned at the tensions between Ukraine and Russia, said accountancy firm MHA Tait Walker ... PAGE 2
UPS REVENUES JUMP ...
GLOBAL logistics operator UPS reported revenues up 11.5% to $27.8 billion in its fourth-quarter 2021 results. Consolidated operating profit was ... PAGE 2
WFS APPOINTS ESA TO VP ... HANDLER Worldwide Flight Services (WFS) has appointed Mohammed Esa as senior vice president, group commercial business development ... PAGE 4
WHERE THE ROSES GROW A simple bouquet of 12 red roses was once the way to show love on Valentine’s Day but, as things get bigger and brighter each year, more flowers are flying. PAGE 6
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NEWS
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New year, same story as Ukraine crisis could imperil supply chains global air cargo makes a modest start to 2022 AGAINST a backdrop of continuing market uncertainty, general air cargo volumes in January 2022 recorded a modest 0.1% increase in chargeable weight compared to the opening month of last year, according to the latest analysis by CLIVE Data Services. Volumes were also on a par with the pre-pandemic January 2019 level at +0.2%.
Xeneta, said: “We see this as a respectful start to 2022 by an air cargo market still dealing with uncertainties caused by Covid, as sick-leave and quarantine rules continued to affect many industries and countries. We can see that the global airfreight supply chain remains fragile, with airlines cancelling flights upfront because
Cargo capacity
MANUFACTURERS are increasingly concerned at the tensions between Ukraine and Russia, said accountancy firm MHA Tait Walker. Following the release of the latest UK Manufacturing PMI index on February 1, Alastair Wilson, partner at MHA, detected renewed optimism in the sector fuelled by easing supply chain issues and rising consumer confidence, but notes the potential for serious disruption in the supply of energy and materials if the situation in the Ukraine worsens. He said this has already led to rising fuel prices, which are having a direct impact on the profitability of businesses, resulting in further costs being passed to the end consumer. He added: “As the situation develops, manufacturers will be hoping for a swift de-escalation in rhetoric and hostility as they look to bounce back from a difficult 2021.” However, he continued: “The relentless supply chain issues that dogged the manufacturing sector in 2021 are finally showing signs of abating, filling manufacturers with a renewed
sense of optimism. Many have reported shortening lead times, helping businesses complete orders and plan with greater certainty in the short-term. “This has coincided with rising consumer confidence as concerns over the Covid-19 Omicron variant have lessened, resulting in increased retail footfall that will drive demand. Compared with other major European economies the UK is well placed to accelerate out of the recent economic slowdown. “Despite the uptick in positivity, long-term demand may diminish as consumers face the growing pressures caused by rising energy bills, inflation and increases in National Insurance contributions. The introduction of full customs controls on the UK border at the beginning of this month is also causing fresh logistical delays as businesses adapt to the new rules. The recruitment market also remains highly challenging, with many businesses reporting that shortages of labour are causing unsustainable increases in wages.”
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Cargo capacity in January 2022, compared to the first month of 2019, was down -4%, and up +6% versus January 2021, while CLIVE’s ‘dynamic load factor’ – which measures both the volume and weight of cargo flown and capacity available to produce a true indicator of airline performance – stood at 62%, +1% points higher than in January 2019, but -6% points below the opening month of last year. Airfreight rates remained high, compared to the pre-Covid level, at +156% in January 2022 versus January 2019, although this was the first time in six months that the gap with pre-pandemic rates declined month-over-month, following December’s +168% rise. Compared to January 2021, air cargo rates in January 2022 were +41%. CLIVE, which earlier this month was acquired by ocean and air freight rate benchmarking firm Xeneta, advises the air cargo market to be cautious before drawing strong conclusions based on January’s performance. Niall van de Wouw, formerly managing director of CLIVE and now chief airfreight officer at
of the lack of crew. January has also reminded us that Covid isn’t the industry’s only concern.” He added: “During the month, we saw other aviation disruptors, including 5G concerns in the US, extreme winter weather conditions impacting flight schedules, and Chinese New Year, which began two weeks earlier than in 2021. Measured against all these factors, January’s performance shows there is still a good degree of resilience in the global air cargo market.”
UPS revenues jump in final quarter GLOBAL logistics operator UPS reported revenues up 11.5% to $27.8 billion in its fourth-quarter 2021 results. Consolidated operating profit was $3.9 billion, up 91.0% compared to the fourth quarter of 2020, and up 37.7% on an adjusted basis. Diluted earnings per share were $3.52 for the quarter; adjusted diluted earnings per share were 35.0% above the same period in 2020. Domestic revenue was up 12.4% to $17.7bn and international revenue increased 13.1% to
$5.4bn. Supply Chain Solution revenue was $4.68bn compared with $4.38bn in the fourth quarter of 2020. CEO Carol Tomé, said: “I want to thank all UPSers for their outstanding efforts throughout the holiday season and for once again delivering industry-leading service to our customers. “The execution of our strategy is delivering positive financial results and driving strong momentum as we move into 2022.”
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WFS appoints Esa to VP role Qatar Airways launches CO2 emissions calculator
HANDLER Worldwide Flight Services (WFS) has appointed Mohammed Esa as senior vice president, group commercial business development and strategy. Esa brings 30 years of global leadership experience in commercial and operational roles in the
transportation and logistics industries, having spent the last 18 years at Agility Logistics, most recently as senior vice-president global business development and global lead digital customer solutions. He previously also served as Agility’s chief executive officer and senior vice president of UAE, Oman and Bahrain, and as the company’s vice president sales for the Asia Pacific region. At WFS, Esa’s mission will be to develop and oversee the implementation of WFS’ commercial development strategies to ensure a fully integrated commercial approach to drive future growth. He will also help to identify and develop new lines of business and focus on the development of digital solutions which support WFS’ customer experience and organic growth. “Esa is a tremendous addition to WFS’ already-strong commercial team,” said Barry Nassberg, group chief commercial officer at WFS.
Qatar Airways Cargo has introduced a cargo carbon emission calculator for customers interested in the environmental impact of their shipments. Available under the eServices menu on the airline’s website, the calculator quickly determines the shipment’s total CO2 emissions in kilos or pounds. The user enters the shipment’s origin, destination, flight date, and weight to obtain the different flight options and their respective carbon emissions. The calculator was developed based on the published IATA methodology for use in offsetting programmes. It automatically considers various factors such as aircraft type, route-specific data, as well as passenger and cargo load factors. Qatar Airways Cargo says the calculator is the first step towards developing a fully integrated cargo carbon offsetting solution for its customers. Eventually the information tool will be inte-
grated into the online booking process, and customers will be offered a selection of carbon offsetting project options to choose from. The IATA CO2NNECT programme, which the airline joined in November 2021, will ensure that the credits purchased to offset emissions are from projects delivering verified carbon reductions and wider environmental and social benefits. “Following our joint Qatar Airways Cargo-IATA project pilot to launch a new voluntary carbon offsetting programme for air cargo shipments, Qatar Airways Cargo is now proud to unveil our Emission Calculator,” Guillaume Halleux, chief officer cargo of Qatar Airways Cargo, announced. “To improve a situation, it is important to establish the status quo. This calculation tool enables our customers to get a better overview of their shipments’ carbon footprint with us. It is the first step in our plan to offer a complete offsetting capability as part of the CO2NNECT programme we have entered into with IATA.”
WAL’s mentorship scheme goes live
MOVEMENT for positive change Women in Aviation and Logistics (WAL) has launched its mentorship scheme, matching 27 industry leaders - 16 women and 11 men - with aspiring female professionals from across the globe. The free-to-join programme will run until April, with mentors and mentees making a minimum four-hour commitment over four months. Participants will provide their feedback and lessons learned at the end of their mentorship for further improvement of the programme. Mentors and mentees taking part in the scheme come from different parts of the supply chain, including airlines, forwarders, tech and drone companies, airports, and associations. “We have received encouraging feedback from mentors and mentees who have already started their journey on the programme,” said Emma Murray, chief executive officer and founder, Mean-
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time Communications, and co-founder, WAL. “Once we have our first wave completed, we will review and have every confidence that we will be able to set up a second wave in the autumn with a view to establishing a rolling mentorship scheme.” The mentorship programme is designed to grow and empower female professionals who will be the future heads of cargo companies and board members. This new generation of leaders will be in charge of the air cargo industry, which will be sustainable, diverse, and even more resilient to future shocks. “I am delighted to be part of the WAL initiative and I hope that my experience of the air cargo industry will be helpful in ensuring that everyone has an equal opportunity of succeeding in what is a vitally important global service,” said Tristan Koch, chief commercial officer, Awery, and WAL mentor.
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NEWS
Industry group asks UK policy makers: Where’s the warehousing? The UK Warehousing Association (UKWA) said it was extremely disappointed that there was no mention of the sector in the Government’s ‘Levelling Up’ strategy. The policy, unveiled on February 2 by the minister in charge of the scheme, Michael Gove, aims to spread prosperity and opportunities to all parts of the UK and tackle the country’s deep regional divisions. UKWA chief executive, Clare Bottle complained however that it was “extremely disappointing after all the months of hype” that warehousing is not so much as mentioned in the Government’s 12 Missions to Level up in the UK. She said: “Warehousing and logistics contributes billions of pounds to the UK economy, accounts for around 7% of the UK’s workforce and is creating increasingly diverse job opportunities, whilst also becoming more energy efficient. “Last month the British Property Federation’s report ‘Levelling Up – The Logic of Logistics’ confirmed significant growth in the sector as well as unprecedented demand for warehousing space, which is predicted to continue. Further, it found that additional industrial development could unlock significant ad-
ditional demand and wide socio-economic benefits. “This illustrates clearly that warehousing is already making an important contribution to the Government’s levelling-up agenda, with 70% of demand for warehousing property coming from the North and Midlands. Therefore, we urge Government to deploy their twelve new missions appropriately, to support our sector, recognising that warehousing’s success is a good news story not only for the economy, but for society and the environment.” Bottle went on to say that the Government made a bold claim that “by 2030, pay, employment and productivity will have risen in every area of the UK”. But she emphasised that this would only be achieved if the right logistics infrastructure is in place to support the on-going expansion of the digital economy. Despite disappointment that the sector was overlooked in the white paper, she said UKWA hopes that that the paper’s pledge to commit to more research and development investment should help drive automation and digitalisation in warehousing.
Wingcopter teams up with UAV LATAM in Peru
German drone delivery pioneer Wingcopter is partnering with UAV LATAM, a Latin American corporation with more than 10 years of experience in the unmanned aerial vehicle space (UAV) and a presence in seven countries. Through this alliance, Wingcopter will work with UAV del Peru, a subsidiary of UAV LATAM to deploy the Wingcopter 198. Its new flagship unmanned aircraft system (UAS) will carry out drone delivery operations for local clients. Under the partnership, Wingcopter, UAV LATAM and UAV del Peru say they will become leaders in drone delivery in Peru. UAV LATAM, through UAV del Peru, plans to use Wingcopter’s cargo drones, for example, to give hard-to-reach communities in the Peruvian Andes access to medical products. It is considering expanding the service to other countries of the region later. Since UAV LATAM’s pilots are already Wingcopter-trained, the company will be one of the first in Latin America to use delivery drone technology for commercial and humanitarian applications. UAV del Peru is part of Peru Flying Labs, a member of the international Flying Labs Network that was initiated by WeRobotics to strengthen local expertise in the use of drones, robotics, data and AI for positive social change and create new job opportunities in more than 30 countries around the world. Wingcopter joined the Flying Labs Network in early 2021 as a technology partner. Juan Bergelund, CEO of UAV LATAM, commented: “Currently, several Latin American countries have partially deficient infrastructure, especially in the health sector, affecting billions of lives, a situation that has been aggravated by Covid-19. At UAV LATAM, we are convinced that with the deployment of Wingcopter drones, we can actively support Wingcopter’s vision of creating efficient and sustainable drone delivery solutions that improve and save lives everywhere.” Tom Plümmer, CEO of Wingcopter, added: “By collaborating with UAV LATAM we leverage another great partnership to accelerate our expansion to Latin America. Our goal is to be present on all continents, through our network of authorised Wingcopter partners or through own drone-as-a-service operations, and we are on a good track to reach this goal soon. We can’t wait to announce more partnerships and own operations in other parts of the world to further increase our global reach and commercial traction.”
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LOVE IS IN THE AIR
WHERE THE ROSES GROW
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simple bouquet of 12 red roses was once the way to show love on Valentine’s Day but, as things get bigger and brighter each year, more flowers are flying across the globe ahead of February 14. Like many of sectors, the flower industry took an unwanted pruning during the pandemic, devastating business for flower farmers. In Colombia, the second largest flower exporter after the Netherlands, sales crashed by 25% in 2020. Hitting just before Mother’s Day in the Americas, Colombian flower growers were forced to destroy thousands of tonnes of roses, carnations and chrysanthemums. In 2021, the industry started to grow back again and this year is out in full bloom.
“To prepare for Valentine’s Day, we’re offering the very similar capacity as last year from LATAM into the Fort Worth and Miami International will be the main gateways into the USA and the principal points of origi Colombia and Ecuador,” says Lorena Sandoval director Florida, Latin America and Caribbean, American Airlines which include well-known favourites such as roses and gypsophila (baby’s breath) are continuing to flow and Medellin. We expect to move around 40 tonnes per day which is very much in line with previous yea considerable impact due to the pandemic, starting with the farms where the flowers are grown. Due to labour simply not enough people to pick all the flowers. Additionally, we’re seeing other impacts along the supply chai are ready to be shipped by air. “Within our Miami facility we have three coolers through which we welcome Vale as a cold-chain network throughout our system to maintain freshness. Our teams are highly experienced in ha commodity. Individual flower types have different shipping requirements and we have a deep knowledge of t of these different types of flowers. We carry flowers in LD9 containers as these are idea
“There is clearly a higher demand for flowers for this year´s Valentine and we expect a volume increase of approx from all main flower exporting countries this year compared to 2021. The available air cargo capacity from these sup may not be sufficient to cover the full demand,” says Dennis Verkooy, SVP global perishables air logistics at Kuehne+ prepare for the Valentine peak well in advance. Hence our teams at the major flower shipping stations have been disc Valentine volumes with their clients during the last months of 2021 already and working on securing the necessary s lanes. The main routes are from Bogota and Quito to Miami and various airports in the EU, from Nairobi mainly to from the Netherlands predominantly to United States and Canada. Early talks with and commitments of carriers and make sure that within a very short period of approximately 10 days substantial additional volumes can be accomm time-critical product. On time uplift at origin and timely delivery at destination is therefore paramount. Equally imp communication with clients and carriers in order to guarantee the correct flow of information and best service. Tem many as possible critical points are of course imperative and executed by our staff at or
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FEATURE
This year, flower exports are in high demand. Speaking in the middle of January to AFP News Agency, Augusto Solano, president of Colombian Flowers Exporters Association, said the Colombian flower industry is in “full swing” ahead of Valentine’s Day, one of the industry’s two main seasons, along with Mother’s Day. He says: “We expect 650 million flowers to be sold because it’s Valentine’s Day. Mostly roses but all kinds of flowers are sold.” The Association says sales have now returned to pre-pandemic levels. Solano adds: “The main thing has been to protect the health of the workers so that they are able to continue the operation. We also have to tackle the logistics problems, like the lack of aerial transport and the increase of the costs of aerial transport.” One worker at a flower company in El Rosal, Colombia said to AFP: “The fact we are growing flowers so people in other countries can express love and friendship is something very beautiful.”
m LATAM into the United States. Dallas pal points of origin will once again be American Airlines Cargo. “The flowers, ontinuing to flow from Bogota, Quito with previous years. There has been a wn. Due to labour shortages, there are g the supply chain before the flowers we welcome Valentine flowers as well experienced in handling this precious p knowledge of the handling of each s as these are ideal for moving them.”
“This Valentine’s season, Amsterdam Airport Schiphol is expecting to process between 3,500 and 4,000 tonnes of fresh flowers. This number has increased by 15% since last year because of the growth in freighter capacity at Schiphol Airport,” said Roos Bakker, cargo partnerships director, Amsterdam Airport Schiphol. “Flower imports at Schiphol arrive predominantly from Kenya, Colombia, Ecuador, and Ethiopia because these regions offer ideal growing climates. Flowers exported out of Schiphol are flown mostly to Russia, China, Thailand, and many other countries. Keeping the flowers cool is key. The optimal temperature range is between 2 -5 degrees Celsius. For this reason, Holland Flower Alliance, a collaboration between Royal Flora Holland, KLM Cargo and Schiphol Cargo, decided to map the journey taken by flowers in order to optimise it, to make sure optimum use is made of cargo holds during peak times. The solution: a smart crate for flowers. Smart crates are boxes of uniform size and setup, made from sustainable materials. As all smart flower crates have the same size and fit perfectly on pallets, this allows us to prevent space from being wasted. Initial pilot tests have shown that over 15% more cargo can be loaded on board when smart crates are used and air circulation is also improved, keeping flowers cool and prolonging their lifespan. Supply chain collaboration is very important when handling shipments of this nature and collaboration is something that we do well at Schiphol Airport. We also have on site cooling facilities at the airport that assist us in handling these delicate shipments, and benefit from data insights into our trade, brought about by our digital initiatives.”
ncrease of approximately 10% shipped ty from these supply markets however gistics at Kuehne+Nagel. “It is crucial to ns have been discussing the expected g the necessary space on the relevant Nairobi mainly to United Kingdom and nts of carriers and clients are critical to can be accommodated. Flowers are a mount. Equally important is continuous best service. Temperature checks at as by our staff at origin and destination.”
“I like to buy fresh flowers because they are a timeless gift. Personally, I don’t mind which country these flowers have come from, as long as they have been grown in ethical conditions, but it’s important to me that they are still fresh when I buy them. Buyers can be picky when it comes to choosing flowers but I think it is impressive the flowers have travelled half way around the world and still look beautiful,” says one flower buyer.
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THE BACK PAGE
WALKER LOGISTICS TO SEND THE C-47 INTO THE SKIES ONCE MORE
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United States Army Airforce (USAAF) C-47 Troop Carrier aircraft that played a key role in what is probably the most significant logistical operation ever undertaken, World War Two’s (WW2) D-Day landings, is set to take to the skies once again, thanks to UK-based e-commerce specialist, Walker Logistics. The C-47, christened ‘Night Fright’, flew in every major airborne operation of WW2 from an airfield at Membury, Berkshire, where Walker Logistics is based. “Membury was the departure point for hundreds of American troops heading for Normandy to take part in the D-Day landings and the C-47 in particular was synonymous with Membury,” says Walker Logistics’ head of marketing, Charlie Walker. As a supply plane, the C-47 could carry up to 6,000 pounds (2722kg) of cargo. It could also hold a fully assembled jeep or a 37 mm cannon. As a troop transport, it carried 28 soldiers in full combat gear and as a medical airlift plane, it could accommodate 14 stretcher patients and three nurses.
Seven basic versions of the aircraft were built, and it was given at least 22 designations, including the AC-47D gunship, the EC-47 electronic reconnaissance aircraft, the EC-47Q antiaircraft systems evaluation aircraft and the C-53 Skytrooper. Every branch of the US military and all the major allied powers flew the C-47. The British and the Australians designated it the Dakota, a clever acronym composed of the letters DACoTA for Douglas Aircraft Company Transport Aircraft. By the end of WW2, more than 10,000 examples were built. For all of its official and unofficial names, it came to be known universally as the “Gooney Bird” and General Dwight Eisenhower, supreme commander of Allied Forces in Europe, termed it one of the most vital pieces of military equipment in winning the war. Initially Walker Logistics set out to find a wartime plane that had flown from Membury that could stand as a monument at the gates of the airfield to commemorate the role that the village had played in WW2. But after Night Fright was discovered in a scrap yard in Arkan-
sas the plan quickly changed and it was decided to completely restore the plane and return it to flying condition. “I want to bring Night Fright back home again,” says Walker. A qualified pilot, Walker has been at the heart of the project and his passion for history and aviation, along with no small amount of hard work and determination, has been key to delivering what he hopes will be “the most authentic flying C-47 anywhere in the world.” Walker Logistics is also funding the development of a hangar to house Night Fright as well as a museum building to display a collection of artifacts and memorabilia. Walker adds: “We want to help educate all age groups about the history of Membury and the surrounding area during the Second World War. It’s about honouring past generations and educating future ones. “Corporate social responsibility is high on Walker’s agenda and we feel that this unique project is an excellent way of paying homage to Membury’ s past as we build for its future prosperity.”
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