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The weekly newspaper for air cargo professionals Volume: 20
Issue: 19
15 May 2017
Air cargo excellence celebrated in Munich
CARGOLUX AND EMIRATES SIGN PARTNERSHIP MAB GROWS IN Q1 BUT SUSPENDS FREIGHTER ROUTE TIGERS OPENS OFFICE IN MYANMAR HEATHROW LAUNCHES FREIGHT APP
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Chapman ups stake in Magma to 75%
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xcellence in the air cargo industry was celebrated last week at the glittering Air Cargo Week World Air Cargo Awards in Munich. The luxurious Westin Hotel was the setting and saw a crescendo of cheering and applause for the accolades as winners in 10 categories collected their trophies and the acclaim of the industry. The awards were held during air cargo europe - the world’s biggest airfreight trade show run by Messe Munchen. Broadcaster and television director Nadia Dunn compered the evening as 500 air cargo professionals enjoyed a sumptuous dinner and fine champagne and wines along with a variety of live acts and music. Notable winners included Etihad Cargo who won took home the Cargo Airline of the Year award for the second year running after
winning in Shanghai last year, and Brussels Airport, which won Airport of the Year again. The winners were as follows: • Cargo Airline of the Year: Etihad Cargo Finalists: Qatar Airways Cargo, Virgin Atlantic Cargo and United Cargo • Airport of the Year: Brussels Airport Finalists: Miami International Airport, Frankfurt Airport and Incheon International Airport • Air Cargo General Sales Agent of the Year: ECS Group Finalists: ATC Aviation, Air Logistics Group and Kales Aviation Services • Air Cargo Handling Agent of the Year: Hactl Finalists: ALHA Group, dnata and Evergreen • Air Cargo Charter Broker of the Year: Air Charter Service Finalists: Chapman Freeborn, Hunt &
Palmer and Neo Air Charter • Airfreight Forwarder of the Year: Dimerco Finalists: DHL Global Forwarding, Geodis and Kuehne + Nagel. • Air Cargo Industry Customer Care Award: Air Asia Finalists: Virgin Atlantic Cargo, Emirates SkyCargo and Thai Cargo • Air Cargo Industry Achievement Award: Saudia Cargo Finalists: Emirates SkyCargo, United Cargo and Virgin Atlantic Cargo • Information Technology for the Air Cargo Industry Award: WebCargoNet Finalists: Accelya, CargoGuide and Yuredi • Air Cargo Industry Marketing and Promotional Campaign Award: ECS Group Finalists: Saudia Cargo, United Cargo and Virgin Atlantic Cargo
CHAPMAN Freeborn has increased its stake in Magma Aviation to a majority shareholding of 75 per cent to support the company’s long-term growth plans. The charter company has held a minority share in Magma since its launch in 2010 to commercially and operationally manage dedicated wide-body aircraft, contracted on an exclusive basis for airline partners. Magma will continue to operate as a stand-alone business, with the two founding shareholders, Ross Wilson and Tom Wrigley, retaining the remaining capital share and running the company as joint managing directors. Chapman Freeborn chief executive officer, Russi Batliwala says: “Over the past seven years Magma has proved itself to be a highly-respected and dynamic supplier of all cargo capacity to niche destinations. We look forward to seeing its ongoing development as an independent company under the new structure.” Magma operates a fleet of two Boeing 747-400Fs, operating regular flights to and from key African countries. Its cargo hub is at Brussels Airport. Magma took delivery of its second 747-400F on 1 May from Air Atlanta Icelandic.
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NEWSWEEK Cargolux and Emirates SkyCargo sign partnership
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mirates SkyCargo and Cargolux Airlines have signed a memorandum of understanding (MOU) to work together operationally as part of a strategic partnership. The MOU was penned at air cargo europe in Munich last week, which will see the two carriers work together to utilise aircraft capacity. Emirates SkyCargo will utilise capacity on the Boeing 747 Freighter aircraft from Cargolux – to service customers with heavy/outsized cargo. The partnership is the first of its kind in the air cargo industry between a mainline carrier and specialist freighter operator. Both will carriers will also further develop block space and interline agreements for use on each other’s networks permitting access to capacity on routes where they do not operate. As part of the MOU Emirates SkyCargo will also start a freighter service from Dubai World Central to Luxembourg Airport in June with cargo being handled at the same facility in Luxembourg. Cargolux will also increase the frequency of freighters to DWC from its current three times a week to five times a week soon to facilitate better connectivity between the two hubs. The carriers say handling cooperation at both hubs will enable seamless movement of cargo between the two operators.
Emirates divisional senior vice president for cargo, Nabil Sultan says: “Cooperating with Cargolux who is a leading, established and specialised air cargo operator with strengths that are complementary to our own will allow us to present a broader enriched product offering and add value to our customers.” Cargolux president and chief executive officer, Richard Forson adds: “Emirates SkyCargo is an important player in the industry as Cargolux is, and our supplementary capabilities allow us to develop service offerings that both of us could not provide on our own.”
New GSSA network launched A new network for independent air cargo general sales and service agents (GSSAs) was launched at air cargo europe last week and is aiming to take on the ‘big boys’ and help indepedent GSSAs in the marketplace. 1GSA says it aims to help independents “compete more effectively against the major, centrally-owned GSSA companies”. The network already covers Bangladesh, the Czech Republic, India, Madagascar, Mauritius, Pakistan, Singapore, Spain, Sri Lanka, Turkey and the UK. A recruitment drive is now under way to further develop the geographic coverage. Members now signed up total six and include Select, CRS, GCAir, Kargo Sistem, and M&C Aviation. 1GSA is the brainchild of Select Airline Management founders David Lee and Colin Brett, and Pilot Marketing managing director (MD), Derek Jones. Lee is the first president and Jones the first MD. Lee says: “With 1GSA, we are providing independent GSSAs with the opportunity to be part of a bigger organisation, without sacrificing their treasured independence.” 1GSA says there is around 300 independent cargo GSSAs.
dnata acquires AirLogistix USA
Dnata has reached an agreement with Lynx Holdings LP to acquire its AirLogistix USA cargo handling operations at George Bush Intercontinental Airport Houston in the US. The 30,000 square feet facility includes the only dedicated perishable cargo facility at Houston airport. This state-of-the-art cargo handling centre is suitable for all perishable products including pharmaceuticals, fruits, vegetables, fish and flowers, and further establishes dnata in perishable cargo handling. In 2016, over 16,000 tonnes of perishable cargo were handled from this warehouse. In addition to this, the facility also has the capacity to handle up to 20,000 tonnes of regular/general air cargo shipments. As part of this deal, AirLogistix USA and dnata have also committed to open a similar facility at Dallas Fort Worth International Airport in the summer of this year. This second facility will be 37,000 square feet, again including a dedicated perishables handling facility.
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NEWS WEEK
Qatar to open Climate Control Centre
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atar Airways Cargo will open a new Climate Control Centre (CCC) next month and is to start a weekly Airbus A330 Freighter service to London Heathrow Airport on 3 June. The announcements were made at air cargo europe in Munich where the carrier held a press conference. The CCC is 2,470 square metres airside transit facility for temperature-sensitive cargo including pharmaceuticals and perishables and will feature two zones operating for two to eight degrees Celsius or 15 to 25 degrees Celsius. It will have capacity for 156 unit load device at a time. Qatar Airways Cargo also revealed it has opened a 6,700 square metre dedicated transit facility for courier and mail products at Hamad International Airport with a capacity of 256,000 tonnes. Chief officer for cargo, Ulrich Ogiermann says the carrier is running out of space in Doha and needs both facilities to meet increasing demand and the growth it is seeing. Qatar Airways Cargo is building a new cargo terminal (CT2) and phase one is set to open in 2021 which will give it the capacity it needs. The 110,000 square metre will boost the carrier’s capacity to 4.6 million tonnes. As for the new Heathrow freighter service, Ogiermann says it will complement freighters it already runs into London Stansted Airport
WORLDNEWS ETIHAD Cargo and Trinity Logistics USA added a second weekly Boeing 777 Freighter flight from Rickenbacker International Airport on 12 May. The new service will operate on a Colombo – Columbus – Abu Dhabi route to move fashion from Sri Lanka to retailers in the US and support US exports to Europe, the Middle East and Asia, adding to the Colombo - Columbus - East Midlands - Abu Dhabi flights launched in 2016.
and he adds if any more slots come up it would be interested. It will run at about 15.00h on Saturdays. It will receive four additional Boeing 777 Freighters between September 2017 and March 2019 to bring the freighter fleet to 25. New passenger destinations are to launch later this year to the likes of Thailand, Cameroon, Gabon and Slovenia giving it a further 200 tonnes of weekly belly capacity. Ogiermann says the carrier’s eAWB penetration rate was 72 per cent as of March and it is targeting a penetration rate of 80 per cent by the end of the year.
FLEXPORT is opening its first warehouses in Hong Kong and Los Angeles to serve as “fast-paced consolidation and deconsolidation points”. The freight forwarder says it ships more freight between Hong Kong and Los Angeles than any other city pair, so they are a natural starting point for its network of physical logistics centres. It says centres will help keep rates low as multiple clients’ cargo will be consolidated into fewer shipments.
New Compliance Checker AMSTERDAM Airport Schiphol has introduced a new Compliance Checker to speed up cargo flows by detecting data errors in air waybills. Developed as part of the European Green Fast Lanes Project, the system automatically inspects the content and format of the data, and Schiphol says the Compliance Checker decreases delays, the need to repeat work, and increase data quality, efficiency and predictability in the supply chain. The system was developed by Cargonaut and tested by KLM Cargo, and uses smart technology, it checks air waybill data and sends automatic data if the information is not correct, preventing delays caused by sending non-compliant cargo to customs. Shipments are not transported until all the data is correctly inputted, and errors are rectified. It was announced at Air Cargo Europe on 10 May.
Jettainer renews ULD deals
JETTAINER renewed unit load device (ULD) management contracts with both Etihad Cargo and Lufthansa Cargo until 2021 at Air Cargo Europe. It will also provide Etihad with ‘smart-ULDs’ during the time and Lufthansa will receive lightweight units. The smart-ULDs autonomously provide information about the container’s position, temperature and maintenance status and Etihad Cargo will be the first airline for the new containers, which are fitted with GPS for constant traceability. Jettainer says the higher transparency leads to benefits for customers including quality assurance. Etihad Cargo senior vice president, David Kerr (pictured left) says: “Etihad Cargo is delighted to continue our relationship with Jettainer, which has proved to be a great partner over the past five years. The renewal of our agreement is testament to our strong collaboration, and will ensure our customers continue to enjoy a consistent delivery of products and services.” Jettainer says the introduction of new lightweight containers to the Lufthansa Cargo fleet will continue giving the carrier access to one of the most eco-friendly lower-deck ULD fleets in the world, which will also play a role in reducing CO2 emissions in global aviation. “We’re working hard to make things smarter – in all respects: whether this involves smarter accounting systems, smart management for our ULD fleet or even smarter containers – and we’re delighted to be able to offer our best services to Lufthansa Cargo in particular,” says Jettainer managing director, Carsten Hernig (pictured right).
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NEWSWEEK US cargo handling contracts for WFS
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orldwide Flight Services (WFS) has won new deals with Polar Air Cargo, LOT Polish Airlines and Swiss International Air Lines in North America. The three-year contract to support Polar Air Cargo and its partners in Cincinnati, will give the airline and customers benefit from a single point of data capture and 100 per cent shipment visibility with WFS’ online customer service portal, ePic, as well as freight acceptance, delivery, build-up and break-down services. The contract, providing warehouse services for both Polar and its partner, DHL, will see WFS handle 86,000 tonnes per annum for their Boeing 747 and 767 operations to and from the Ohio airport, with WFS personnel working from Polar’s 100,000 square foot off-airport warehouse facility in the city. WFS has recruited nearly 90 employees to serve the new contract, with team members in
New York and Miami relocating to Cincinnati to support the implementation process during the first few weeks of operation. LOT Polish Airlines has signed a two-year contract for passenger, ramp and cargo services for its seven Boeing 787 to Warsaw from Newark. SWISS has signed a three-year deal for cargo warehouse services for the next three years commencing June 2017 supporting seasonal San Diego – Zurich flights by Edelweiss Air.
Pharma focus for Yusen Logistics YUSEN Logistics has launched a dedicated pharmaceutical gateway in Frankfurt as it looks to grow business in Europe. This new operation represents the official launch of Yusen Logistics’ GDP compliant global pharma airfreight services from Germany and is the latest step in the company’s customer-driven development in the pharma supply chain. The firm says Frankfurt’s global network, frequency of service, choice of carrier, streamlined handling processes and supportive Customs are part of its “high quality pharma offering”. This new operation has been developed in close consultation with Yusen Logistics’ pharmaceutical customers, who are increasingly looking for new ways to optimise flows within the constraints of GDP. The operation links Yusen Logistics’ German import/export consolidation cen-
tre and European road network, to form a true multi-modal hub. This Yusen explains gives it the flexibility to create efficiencies, driving out cost, providing value to customer. Yusen Logistics’ European ‘Pharmaceutical Superhighway’ is contracted to carry over two million pallets this year. The service is dedicated to the pharma and healthcare industry, with over 50,000 delivery points in Europe alone. Yusen makes 20,000 deliveries per week across 36 countries.
Airfreight tonnage up 16% at Expeditors
EXPEDITORS has reported its net revenues increased two per cent in the first quarter (Q1) of 2017 and airfreight tonnage increased by 16 per cent – compared to Q1 last year. The freight forwarder’s net revenues reached $528 million in Q1 this year, up on the $517 million in Q1 2016. Operating income was $146 million in Q1, a four per cent fall on the $151 million in Q1 2016. Net earnings attributable to share-
holders decreased three per cent to $93 million. Revenues from airfreight services were $615 million in Q1 this year, up on the $560 million in Q1 last year. Expeditors president and chief executive officer, Jeffrey S. Musser says: “Similar to the past few quarters, our people continued to execute well and we again increased volumes and grew market share. “We were especially pleased with the performance of our Transcon and customs brokerage teams, as they increased business with existing customers and also brought on new customers, proving our investments in those areas are bearing fruit. “We remain deeply committed to the strategy we have laid out that continues to develop and grow our core business, leading to the purposeful growth in market share that we have been seeing.”
New service centres for Peli BioThermal PELI BioThermal has opened two new service centres in Belgium and Puerto Rico serving the global pharmaceuticals sector. They will serve as additional depots for the company’s Credo on Demand rental program and compliment the existing and expanding portfolio of facilities and services available to customers globally, including a UK Service Centre and Asia Service Centre - opened in 2016. The new centres are located at key hubs for pharmaceutical manufacturing and transfer, enabling clients to receive and return reusable Credo line temperature controlled packaging. Peli BioThermal president, David Williams
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says: “Our team’s flexibility and experience make the addition of new service centres a swift and efficient process. This process can be quickly duplicated and applied to future locations as new customer requirements arise.”
NEWS WEEK
Budapest flying with 32% growth in the first quarter
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udapest Airport keeps flying in 2017, handling a record 30,060 tonnes of cargo in the first quarter (Q1) of 2017, up 32.3 per cent on 2016. Of these 30,060 tonnes, 20,455 of them were air cargo, up 20.8 per cent on Q1 of last year. In March, Budapest handled 11,536 tonnes of cargo, up 33.3 per cent year-on-year, including 7,864 tonnes of airfreight, a 20 per cent increase. Budapest Airport director of property and cargo, Rene Droese says the airport is embarking on a new phase for cargo, and has seen 40 months of continuous growth, with new freighter flights, passenger services and integrators. He says: “We are pleased to support developing companies in Hungary across all sectors, including the automotive, electronic, communication, pharmaceutical, biotech, machinery, medical equipment, and live animal industries. The forwarders transporting this cargo are keen to find new cargo routes and access more direct transport options.” Budapest has welcomed new freighter flights from Qatar Airways Cargo and increased services from partners including Cargolux Airlines International and Turkish Cargo.
Bellyhold capacity has come from airlines including Emirates Airlines and Air China, and Budapest is served by the four major integrators: DHL, FedEx, TNT and UPS. The new warehouse and office complex for DHL Express and TNT Express nears completion as part of the 50 billion Hungarian forint ($174.7 million) “BUD:2020 Development Programme”, which will also see the construction of new facilities called Cargo City.
The warehouse and office complex, totalling more than 18,000 square metres will open this summer, and will include an automated sorting system as well as enhanced shipment process capabilities. The Cargo City, due to be completed in 2019, will have a handling capacity of 150,000 tonnes a year, and will not only expand the cargo handling capacity at the airport, but provide centralised cargo operations, customs clearance and certified storage for special cargo with a focus on temperature controlled goods. Budapest Airport cargo manager, Jozsef Kossuth says: “We believe this to be an optimal environment for air cargo. Our goal is to create an efficient infrastructure and an ideal platform for air cargo distribution, which will be inviting for cargo partners, new airlines, and forwarders.” The strong growth in the first quarter follows 2016, when volumes grew by 23 per cent to 112,000 tonnes, helped by strong growth from all industry sectors. Exports for high-value items including electronics and pharmaceuticals remained strong and other highlights of 2016 included transporting a hippopotamus on an Emirates Boeing 777-200.
Losses continue at AF-KLM AIR France KLM has continued to make losses in the first quarter of 2017 with a net loss of €216 million ($235.8 million) for the group. The loss is up 39.4 per cent on the negative result of €155 million during the same period of 2016 despite revenue increasing 1.9 per cent to €5.7 billion. Both airlines struggled during the period, with Air France’s operating loss increasing to €123 million compared to €86 million the previous year, and a €17 million loss at KLM compared to €7 million in 2016. The group says: “The operating result was notably impacted by currency effects, which had a negative impact of 72 million euros. Adjusted for the interest portion of operating leases, the operating margin was -0.8% versus -0.2% at 31 March 2016. EBITDA amounted to 269 million euros, stable compared to previous year.” Cargo revenue was down 4.7 per cent to €504 million and tonnage by 1.3 per cent to 272,000 tonnes. There was some good news from the cargo division, with revenue tonne kilometres up 0.5 per cent to two billion, while capacity was down 1.1 per cent to 3.4 billion available tonne kilometres, pushing load factors up one percentage point to 60.2 per cent. It says: “During the quarter, the capacity measured in ATK was reduced by 1.1% in which full-freighter capacity was reduced by 14.8%.”
Third 747 for CargoLogicAir CargoLogicAir has taken delivery of its third Boeing 747 freighter, a 747-400ERF, in less than 18 months. The London Stansted Airport-based airline, which received its UK Air Operator Certificate from the Civil Aviation Authority at the start of 2016, now operates two 747-400s and a 747-8. The latest aircraft acquired from AerCap will enable CargoLogicAir to satisfy growing demand for global charters and support its ACMI flying programme for partner, AirBridgeCargo Airlines. CargoLogicAir chief executive officer, Dmitry Grishin says: “The arrival of our third aircraft keeps us on track with our development strategy and will ultimately enable us to look at developing new routes from the UK to markets where we see a sustainable demand. “Initially, it will give us the capacity to increase the frequency of our ACMI operations and also ensure we have a higher level of aircraft availability to perform charter services.” He says after a successful first year, CargoLogicAir has continued to perform well in the first quarter and is on course to grow its fleet to five 747s over the next three years as it looks to increase support of customers in the UK market. CargoLogicAir has also welcomed two new members to its executive team, with John Nicholas joining as technical director, and David Bowden as chief financial officer.
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MALAYSIA MAB grows strongly in Q1 but suspends Chongqing route
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AB Kargo chief executive officer, Ahmad Luqman Mohd Azmi says business has been good and riding on the momentum of the fourth quarter (Q4) of 2016 and in Q1 tonnage was up five per cent on Q1 in 2016. “The restructuring was done back in 2015. Our operations has since been stabilised and we are currently on track to achieve our intended goals and targets,” Azmi says. He notes the strongest air cargo trade lanes for MAB Kargo would be within the Asia Pacific region, where it accounts for 66 per cent of total tonnage in Q1 2017. Azmi explains: “Besides general cargo, our best performing sectors are dangerous goods, followed by perishables. In Q1 2017, they accounted for 37 per cent and 33 per cent of our
total special cargo sector, respectively, within the Asia Pacific region.” He says the partnership with Silk Way West Airlines, which was penned a little over a year ago, has boosted performance. “We intend to enhance the relationship by adding capacity by Q3 2017. This partnership is very beneficial to us, because we have a block space arrangement. It allows us to tap into new destinations and helps to keep our operating costs down.” Azmi says there are no plans to add the fleet of two Airbus A330 Freighters it has and growth will be through the partnership and expansion of belly capacity of Malaysia Airlines. The carrier launched new freighter routes to China (Guangzhou and Chongqing) at the end of 2016 and Azmi says the operation into Guang-
zhou has been performing well, with an average load factor surpassing 90 per cent, but it is putting Chongqing on suspension, pending review of its network. He notes the freighter service to Guangzhou mainly sees perishable seafood and general cargo key exports carried by MAB Kargo. Azmi says the route network is being expanded and due to the successful partnership with Silk Way, it is adding a third freighter into the European Union and he notes this also allows MAB Kargo to explore capacity into the US with partners. “Additionally, we are putting in a freighter service to Delhi, effective 17 May. We are also increasing our freighter frequency - five times a week to Shanghai and daily to Hong Kong,” he adds.
Infrastructure will also be developed and MAB’s facility in Kuala Lumpur is designed to handle up to 900,000 tonnes per year, but it is utilising approximately 85 per cent of the design capacity. Azmi says: “However, we are investing in infrastructure to meet the demand of e-commerce movement within our current facility.” As for the Malaysian air cargo market in general, Azmi says it is growing at a rate of three per cent while there is an increasing demand for e-commerce - an area MAB Kargo is also focusing on. “In addition, a logistics hub will be set up at the KLIA Aeropolis, as part of the Digital Free Trade Zone. MAB Kargo intends to tap into this, as we believe it would provide great benefits to us as a cargo carrier,” he adds.
KLIA Aeropolis taking shape in KL
MALAYSIA Airports Holdings Berhad is growing air cargo and logistic facilities at Kuala International Airport where all four of the major integrators and 20 of the world’s top 25 freight forwarders are active. The future vision is to develop KLIA Aeropolis - including growing infrastructure for cargo and logistics. KLIA Aeropolis is an airport city development of over 9,000 acres, extending its commercial reach and economic impact well beyond the airport’s boundaries. The gateway is well positioned as a gateway to both Malaysia and South East Asia, through its connectivity of over 1,250 weekly flights within South East Asia. There is excellent rail and highway connectivity linking the entire Peninsular Malaysia as well as Singapore in the south and Thailand in the north, and links to the sea port located 45 minutes away. There are plans and capacity to add a
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fourth runway and 300 acres of planned Free Commercial Zone (FCZ) from the existing 100 acres; and dedicated 1,000 acres for expansion to support the air cargo and logistics ecosystem. The Air Cargo & Logistics Hub being is one of the core development clusters within KLIA Aeropolis and positioned to capitalise on the SEA eCommerce market which is expected to reach $88 billion by 2025. Malaysia Airports aims to develop an integrated air cargo network via a mix of air, sea and land. KLIA is positioned as the main distribution gateway within the ASEAN region. The Air Cargo & Logistics cluster vision is to leverage the strategic location of KL International Airport. The Alibaba group is establishing KLIA Aeropolis as its South East Asia’s eCommerce hub with large scale, built to suit distribution centres serving eCommerce B2C and B2B transactions for South East Asia and beyond.
ASIA PACIFIC
Tigers branches out as it opens office in Myanmar
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upply chain group Tigers to expand its e-commerce offering in South East Asia with new branch in Yangon and plans further expansion in Myanmar later in the year. Tigers has opened a new office inYangon as part of the firm’s ongoing growth programme, supporting customers across South East Asia. The new branch, Tigers Indo China Logistics Co. Ltd, in Myanmar’s largest city, is headed by RS Baskkaran (pictured right), and offers the group’s full suite of logistics services, including international freight forwarding, Customs brokerage, and supply chain solutions. It will offer e-commerce capabilities later in the year, thanks to Tigers’ new online marketplace, eShop, which was launched as part of Tigers’ suite of e-commerce products earlier this year. “With consistent developments and an annual GDP growth of 7.5 per cent, Myanmar is the country to watch in the South East Asia region,” says Tigers Malaysia and South East Asia managing director, RS Baskkaran. “We are planning to further boost our presence in Myanmar by
opening two more domestic offices by the end of the year. “We want to be a part of Myanmar’s future in the logistics industry by combining Tigers’ international with our local expertise.” Tigers’ team of four has over ten years’ industry experience, including project management, and expertise within the oil and gas sector. “Myanmar has tremendous growth potential and fits in with our strategy of focusing on emerging markets,” explains Tigers Ltd chief executive officer and group managing director, Andrew Jillings. He adds: “Lying between Malaysia and China, both countries where we already have offices, it further solidifies our presence in the region.” Tigers specialises in supporting a variety of industries, including the pharmaceutical, garments, perishables, electronics, and heavy lift sectors. The Hong Kong-headquartered supply chain company recently signed a cooperation agreement with Malaysia’s national postal provider Pos Malaysia to manage its e-commerce facility in Kuala Lumpur, Malaysia.
Myanmar is one of the fastest growing economies in South East Asia and is expected to continue this growth and a number of logistics companies have set up operations including DHL earlier this year.
Antonov expands into HK
ANTONOV Airlines will establish a presence into Hong Kong and the US as part of its ongoing expansion plans. The Ukrainian carrier has established a new office at London Stansted Airport and appointed general sales agents in Japan and Australia, and has plans for the USA having been granted rights to operate in the country more freely. The expansion plans were announced at air cargo europe in Munich last week. Antonov Company vice president, Oleg Orlov says: “We are excited to be growing our presence globally in some of the world’s most dynamic economies.” “Ukraine has developed excellent links with the USA as a result of an Open Skies Agreement, that has granted Antonov freedom to operate to and from the USA without the need to obtain U.S. Department of Transport (DoT) statements of authorisation.” Antonov is also working with Ukrainian and Western suppliers to modernise its fleet, working with a number of suppliers to upgrade its seven AN-124 and the AN-225 with its 250 tonne payload. It has introduced Dunlop tyres to its fleet enabling the AN124-100M-150 to operate at their designed maximum payload of 150 tonnes, have a much improved lifespan, leading to lower tyre costs per landing. Antonov is also working with US Honeywell for its avionics, Pratt & Whitney, Dowty Propellers, and Zodiac Aerospace in addition to other Western suppliers. Antonov Airlines managing director, Graham Witton says: “Our AN-124s will be flying for the next quarter of a century and we are making sure they are at the cutting edge of aviation technology and design.” He adds: “We are working with some of the most respected suppliers in the world for the modernisation of our fleet.”
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UK & IRELAND
Heathrow launches freight consolidation app
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eathrow Airport is inviting trucking companies and freight forwarders to reduce emissions by using its new load consolidation app, part of Heathrow CargoCloud. Cargo operators will be able to consolidate freight loads coming in and out of Heathrow, with the aim of not only improving efficiency but also reducing the number of trucks and emissions on the road around the airport. Companies subscribing to Heathrow CargoCloud will be able to exchange and share information about any spare capacity on their vehicles, or ask for help on a load they need transporting, and the app will work to match them and they contact each other offline and discuss the opportunity. Heathrow head of cargo, Nick Platts (pictured left talking about the innovation at Air Cargo
Europe on 9 May) says: “Operating a cleaner, leaner and more efficient freight operation is an essential part of delivering on our ambition to be the best airport in Europe for cargo. CargoCloud offers benefits to the whole industry.” “For our cargo partners it allows them to reduce their costs, our local communities will experience less congestion and improved air quality, and Heathrow will build on its strength as an airport of choice for cargo.” Heathrow worked in partnership with Nallian to create the app, and chief executive officer (CEO) Jean Verheyen adds: “Today, this vision is made concrete through the new tool to reduce emissions and traffic congestions. Tomorrow, shared data can be used to further synchronise cross-company processes, allowing clusters of independent companies to achieve efficiency levels that are historically reserved to fully inte-
grated players only.” DHL Global Forwarding CEO BELUX, Luc Jacobs says: “As a driver of innovation in our industry, we fully support initiatives that allow us to do our job a little bit better every day. We are
big supporters of cloud based community systems because when done well, they have the potential to enable substantial efficiencies and eliminate waste in the supply chain at the same time.”
Revenue dips 2.1% at IAG Cargo
IAG Cargo’s revenue dipped by 2.1 per cent in the first quarter of 2017, with volumes growing but capacity increasing at a higher rate. Commercial revenue was €256 million ($279.6 million), a 2.1 per cent decrease at constant exchange, while cargo tonne kilometres (CTK) were up 3.6 per cent to 1.36 billion. Capacity grew 12 per cent during the period and yield was down 5.5 per cent to 18.73 cents per CTK. Chief financial officer, Lewis Girdwood describes the first quarter performance as “an encouraging start to the year”, with strong demand on Asia Pacific and North American routes. He says demand from Asia Pacific grew due to sea freight constraints, saying: “With over 150 flights per week to and from 15 Asian destinations, we are well placed to work closely with our freight forwarding partners to help alleviate this pressure and ensure shippers’ supply chains remain uninterrupted.” “Through the first quarter of the year we
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saw a 34 per cent rise in volumes from Europe to Asia Pacific when compared to the same period in 2016, with fashion, spare parts, fresh fish and leather goods performing particularly well.” Girdwood says UK and European markets performed well, with strong North American demand from the perishables and aerospace sectors while Latin America struggled. He says IAG Cargo is working on developing products, saying: “We are pleased with the development of our newest product, Critical, which has now surpassed 1000 shipments since its launch helping meet the demands of the emergency shipment market.” For the second quarter, IAG Cargo will introduce a new website, and Girdwood says: “The second quarter of the year will see us introduce a new website for our customers, which will greatly simplify the way forwarders book airfreight with IAG Cargo. This will be accompanied by an enhanced proposition specifically for our smaller and medium-sized forwarders.”
UK & IRELAND
UPS to buy Ireland’s Nightline Logistics Group
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PS has entered a definitive purchase agreement to acquire Irish express delivery and logistics company, Nightline Logistics Group, offering customers a wider array of domestic and cross-border services. The two brands will operate separately initially, and will be integrated over time, and UPS says combining the two companies will significantly enhance its presence in Ireland, adding more ground sorting capacity and vehicles throughout the country. UPS provides small package and supply chain services to customers in Ireland with a full suite of ground, air and ocean freight solutions, and also operates gateway functions at both Dublin and Shannon airports. Nightline co-founder and chief executive officer, John Tuohy says: “As we celebrate over two decades in business, this is the right time in the company’s evolution to join the world’s largest parcel delivery company – one with a reputation for taking care of its people and a culture that aligns well with our own.” “Our customers across Ireland, Northern Ireland and Great
Britain will benefit from an even wider reach, enjoying direct connectivity to global export markets, and it will be an important milestone in the company’s growth into the future.” UPS International president, Jim Barber says: “Nightline will complement our existing services, increasing delivery density, while also adding innovative new service options. We also look forward to bringing UPS’s extensive healthcare, high-tech and other specialised logistics expertise to the many Irish companies that specialise in these markets.” UPS Europe Region president, Nando Cesarone adds: “With the addition of Nightline, we continue on our growth path in Europe, and will now be able to better serve customers who export into, and out of, Ireland. This is in addition to UPS’s commitment announced in 2014 to invest $2 billion in its European infrastructure by 2020.”
Heathrow makes £103m profit
Heathrow Airport has made a £103 million ($132 million) profit in the first quarter of 2017 with growth on both the passenger and cargo sectors. The profit compares to a £36 million loss in the same period of 2016, and revenue has increased two per cent to £655 million. Aeronautical revenue has remained at £389 million, with most of the revenue growth coming from retail. Chief executive officer, John Holland-Kaye says the UK benefits from Heathrow’s strength, with surging trade creating jobs. He says expanding Heathrow with a third runway is essential, saying: “Britain is plotting a new course in the world and expanding Heathrow is more important than ever to ensure its success.” It will make our country the best connected in the world and secure our export-led future. We’re getting on with delivering it and look forward to opening Britain’s new runway in 2025.” Cargo volumes grew 7.3 per cent in the first quarter to 399,481 tonnes, and by 12.6 per cent in March to 148,269 tonnes, helped by links to emerging markets including Mexico, Brazil, India and China. Cargo to Indonesia grew 9,000 per cent helped by Garuda moving to Heathrow from Gatwick Airport last year. Chinese trade is expected to increase further with additional China Southern Airlines services to Guangzhou in June and Beijing Capital Airlines flights to Qingdao.
Flybe flies rare turtles to Dublin
Flybe welcomed four very special passengers on board, flying four critically endangered Roti Island Snake Neck Turtles to Dublin. The animals flew on the 18.45h Southampton – Dublin on 27 April to complete their journey from ZSL London Zoo to The National Reptile Zoo in Kilkenny, Ireland. Flybe director of customer care, Jonathan Breedon says: “We are always pleased to help transport such precious cargo and so were happy to assist the National Reptile Zoo in ensuring that these VIP turtles could travel as quickly and safely as possible over to their new home Ireland.” Roti Island Snake Neck Turtles are red-listed as critically endangered, and the species occur in three separate populations covering an area of 70km2 on Roti Island, a small Indonesian island 311 miles off the coast of Australia.
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PERISHABLES GATEWAY
MIA keeps the perishables flowing into North America
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iami International Airport (MIA) is the main gateway for perishables into the US and accounted for more than 64 per cent of all air imports last year. In 2016, the Florida hub’s perishable imports grew from 809,952 tonnes in 2015 to 846,787 tonnes in 2016 (4.5 per cent increase) as perishables continue to be very strong at MIA. The volumes of US fruit and vegetable Imports and US fish imports increased slightly in 2016 compared to 2015, while US flower imports slightly declined out of MIA. The value of perishables to MIA and indeed to the US is huge and four of the top five import commodities through MIA by value were perishable products in 2016 with fish and crustaceans at $1.316 billion, flowers at $1.014 billion, vegetables and roots at $248.4 million and fruits and juices at $152.8 million. Miami-Dade aviation department chief aviation for marketing, Jimmy Nares says in 2017 to date it is once again seeing good growth in the sector, but exact figures are not available. He explains: “Our strongest perishable trade lane by far is with the Latin American and Caribbean region. And, most of this is comes in the form of imports from the South (primarily Central and South America). “Some of our largest trade partners for perishables in terms of volume from this region are: Colombia (flowers); Chile (fish and crustaceans); Peru (vegetables and roots); and Ecuador (flowers).”
Ocean to air
Nares notes it is seeing growth in various trade lanes especially in the transport of perishable products entering MIA that are then trucked north to the rest of the US and Canada. “We are also seeing growth in perishables that enter MIA and that are then flown on to markets in Europe and Asia. “A new project for MIA is Florida’s fist oceanto-air program, where under a pilot program we are receiving perishables from Central America arriving at our two nearby seaports, which are then being transported to MIA for shipment to Europe by air,” he explains: “We have measured success in this new venture, and hope to expand this program to additional points of origin in Latin America to new points in Europe and Asia,” Nares adds. The top perishables groups moving through MIA by volume (tonnes) are fish and crustaceans (primarily salmon and tilapia), flowers and fruits and vegetables. Perishable cargo is moved both by belly carriers and by freighters at MIA. Belly cargo carriers move about 18 per cent of the total, while freighters still transport the majority of tonnage, at 82 per cent.
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While a multitude of passenger carriers transport perishables, MIA hub carrier, American Airlines, transports the most belly cargo, but by overall volume, most perishables at MIA are transported by the 41 freighter airlines. Nares also explains MIA is seeing a growing trend in the transport of pharmaceutical products, and he says that these are increasingly perishable products that require temperature controls. In 2016, nearly $4.4 billion worth of pharma was moved through MIA including $3.3 billion in exports and $997 million in imports. He notes that this level represents a 140 per cent increase since 2010. MIA recently completed its planning phase for a major capital improvement project to prepare for future growth in its cargo operations. The project, called Cargo Optimization, Redevelopment and Expansion Program (CORE), is a detailed, long-term plan to modernise the airport’s cargo operations and double its current capacity (from around two million tonnes to four million tonnes of cargo).
Network expansion
Nares explains: “The project aims at maximising the use of existing facilities and real estate; redevelop outdated, costly structures; and as needed construct entirely new cargo property. MIA does not invest in infrastructure for perishables, per se. “Rather, its cargo airlines and cargo handling companies make improvements to the interiors of general cargo facilities that they lease from MIA.” He also expects MIA’s network to grow into Central and South America and it is actively marketing MIA on two fronts, firstly through development of additional direct air service routes in order to increase capacity; and secondly via implementation of programs designed to expand the product line. Nares adds: “For the latter, for example, we have a Perishables Logistics Road Show program where together with our US Federal Agencies travel abroad to conduct workshops with local growers/ shippers who export perishables to the US via MIA. “These workshops are designed to address specific issues faced with importing into the US market, and to streamline the process, thereby increasing the volume of perishable imports. “Upcoming road show workshops will be conducted in the Dominican Republic, 5-8 June, 2017, and again in Ecuador in early to mid-October.” MIA looks a sure bet to continue being the perishables gateway of the US and indeed the whole of North America and is showing no signs of slowing down its growth.
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ACW 15 May 2017
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NEWSWEEK AA starts Amsterdam - DFW flights
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merican Airlines Cargo has launched Amsterdam – Dallas Fort Worth services as well as adding a number of seasonal routes to other European destinations. The new service to Europe’s third largest cargo airport started on 5 May using a Boeing 767-300, and American says it will offer customers in the Benelux region new opportunities to send shipments, notably pharma, to the US and beyond. American Airlines Cargo regional managing director sales – EMEA and ISC, Tristan Koch says: “This is our biggest-ever summer schedule across Europe and shows our commitment to offering Cargo customers the widest possible access to our global network.” American will also operate a reconfigured Boeing 777-200 between Dallas and Rome Fiumicino as the airline looks to increase traffic from Italy and Mexico and South America,
complementing existing Rome – New York JFK services. Capacity to Ireland will be significantly increased with Dublin – Charlotte, Dublin – Chicago O’Hare and Shannon – Philadelphia flights, in addition to year-round Airbus A330200 Dublin – Philadelphia services. The Dublin – Chicago route will be operated with a Boeing 767-300 until 5 August when it will be upgraded to a Boeing 787-800. American will also operate Boeing 787-800 flights between Barcelona and Chicago.
time:matters offers tracking Time:matters is automating the tracking process for its shipments, which it says will deliver a number of operational advantages. The speed logistics service which is a part of the Lufthansa Cargo group says selected courier partners are linked with time:matters’ booking system via a direct system interface, meaning all relevant information can be exchanged automatically. This will do away with the need for additional communication between time:matters and its sub-contractors, such as Stadtbote, a courier service. “Orders are now send to our system directly via an interface. This enables us to work much more quickly and efficiently,” says Stadtbote chief executive officer, Peter Karstens.
Couriers receive all the key information on a shipment directly from time:matters. They can also enter details of the delivery process directly into time:matters’ system. This information is compiled by the courier in a web app (an app that can be accessed using a web browser) and can then be immediately sent to the customer. This mobile front end is already being used by 100 courier partners for tracking entries. Further linking the system to a flight database enables a quick response to flight delays and cancellations.
Frankfurt-Hahn grows 41% in Q1
Frankfurt-Hahn Airport handed 23,700 tonnes of cargo in the first quarter (Q1) of this year - a rise of 41 per cent on Q1 2016. The gateway was bought by the HNA Airport Group of China in March and says both existing costumers and clients contributed to the strong growth. Sales director, John Kohlsaat says: “We had a very good start to the year, but of course we are constantly willing to improve.“ His outlook for future growth is positive:
“Our airport offers strong benefits for freight customers from all over the world.“ The airport has recently trained staff to handled live animal transportation in accordance with the IATA Live Animals Regulation and the EC Council Regulation and is looking to grow this segment. Senior vice president for cargo sales and business development, Roger Scheifele says: “The demand is strong, and we would like to offer our clients maximum quality.“
Freight surges in Europe by 8% FREIGHT traffic across the European airport network grew strongly in March and in the first quarter (Q1), according to the Airports Council International (ACI) Europe. Tonnage grew by eight per cent in Q1 on the same quarter last year and ACI Europe says March was the best monthly performance since April 2011 with growth of 13.7 per cent on the same month last year. In Q1, Heathrow Airport grew 7.3 per cent to 399,481 tonnes, Frankfurt Airport 6.8 per cent to 508,025 tonnes, Paris Charles de Gaulle Airport 0.4 per cent to
471,837 tonnes. And other gateways seeing strong growth were Amsterdam Airport Schiphol with eight per cent to 420,167 tonnes, Madrid-Barajas Airport 11.4 per cent to 108,509 tonnes, and Brussels Airport 27.3 per cent to 130,068 tonnes. ACI Europe director general, Olivier Jankovec says: “The return of a growth dynamic for freight reflects increasing trade, business confidence and the fact that other leading indicators are showing the economy is on the up – especially in the Eurozone.”