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WORLD ACW Digital is sponsored by AIRPORTS.COM FREIGHTERS.COM
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The weekly newspaper for air cargo professionals No. 1,019
18 February 2019
LOVE IS IN THE AIR CARGO
RIP A380
Deliveries to end in 2021
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irbus will end production of the A380, with deliveries ceasing in 2021 due to Emirates reducing its orderbook, aircraft development and the lack of order backlog. Emirates and Airbus reached an agreement
on outstanding A380 deliveries, with the airline receiving 14 more A380s from 2019 to 2021, taking its total order book to 123 units, reducing its orders from 162. Tom Enders, chief executive officer of Airbus says: “As a result of this decision we have no substantial
The freighter that never was
THE A380 had no freighter equivalent for the simple reason it would have been too big to fly. The attributes that made it a perfect fit for a passenger manager – its ability to carry around 600 passengers – made it unlikely to function as a freighter. Airfreight loaded on an A380 freighter would have been measured in two ways: cube and weight. Cube refers to the volume of the freight. An aircraft is said to “cube out” when it is fully filled but does not approach its weight capacity. The hypothetical freighter equivalent of the A380 would simply be too heavy as it approached its volume limit It would hit its maximum payload, a constraint of weight, before its maximum cubic space, a constraint of volume. Its double-deck design would not support the maximum payload required to generate a profit. A comparison with the market-standard Boeing 747-400F is stark in the basic
A380 backlog and hence no basis to sustain production, despite all our sales efforts with other airlines in recent years. This leads to the end of A380 deliveries in 2021.” He describes the decision as “painful”, but adds: “Keep in mind that A380s will still roam the skies for many years to come and Airbus will of course continue to fully support the A380 operators.” Having reached the A380 agreement, His Highness Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive of Emirates Airline Group says: “Emirates has been a staunch supporter of the A380 since its very inception. While we are disappointed to have to give up our order, and sad that the programme could not be sustained, we accept that this is the reality of the situation.” Emirates has also ordered 40 Airbus A330-900s and 30 A350-900s, with the Sheikh saying: “The 40 A330neos and 30 A350s that we are ordering today will complement Emirates’ fleet mix, support our network growth, and give us more flexibility to better serve seasonal or opportunistic demand.” Guillaume Faury, president of Airbus Commercial Aircraft and future Airbus CEO says: “The A380 is Emirates’ flagship and has contributed to the airline’s success for more than ten years. As much as we regret the airline’s position, selecting the A330neo and A350 for its future growth is a great endorsement of our very competitive widebody aircraft family.”
economic arguments that grounded the A380 freighter. The 747 has a maximum take-off weight of 448 tonnes to the A380’s 575 tonnes. In addition, the 747 has a cargo capacity of 710 cu m to the hypothetical A380F’s 1,134 cu m. The A380F would be able to carry 60% more volume than the 747, but only 28% more weight. It would not be fully loaded at typical levels of air cargo density, or at least nothing close to what can be supported by the thrust capacity of the 747. The greatest brake on the development of the A380F was an empty order book. Tom Enders, Airbus’ outgoing CEO, was once optimistic for the freighter version, at least in public, telling the press that there would be A380 freighters flying sometime in the future. “But only as P2F conversions after the first generation of passenger A380s have been taken out of service due to age reasons,” he told journalists. Ten years ago, production delays and the prioritising passenger variants over the freighter version forced FedEx and UPS to cancel their orders for the freighter, emptying the order books, a blow from which it never recovered.
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INSIDE ABC IMPLEMENTS CARGOCLAIMS
AIRBRIDGECARGO Airlines has solidified its collaboration with CargoHub for the implementation of the CargoClaims platform ... PAGE 2
FIVE YEARS OF SUCCESS
VIRGIN Atlantic Cargo and Delta Cargo are promising customers more choice and automation as their trans-Atlantic joint venture celebrates its fifth ... PAGE 3 FROM WALL STREET TO THE ARK
JOANNE O’Connell admits her unlikely career before The ARK in the famous Wall Street did provide some unlikely skills when she joined the ... PAGE 8
HEATHROW WILL CARRY ON
AS the UK approaches a historic moment, Heathrow Airport’s Nick Platts is confident that the cargo community will get on with the job at hand ... PAGE 10
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Old News
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Frankfurt welcomes the A380 7 November 2008
he giant new A380 aircraft touched down for the first time at a major cargo airport when it arrived at Frankfurst -Main on 29 October. As Europe’s busiest air freight (sic) gateway, Frankfurt will rank alongside Dubai, London and Singapore as one of the first world airports to be regularly served by both the passenger and freighter versions of the A380. A statement from Frankfurt-Main airport operator said the existing runway and taxiway system at the German gateway already allows for A380 operations without any further adaptation. The passenger version of the aircraft is capable of 38 standard LD-3 containers, while the A380 freighter version will have a 10,400km range with a full 150-tonne payload.
The A380 in 2019: The ANA A380 livery is one of the most elaborate ever painted by Airbus. It took the Airbus team 21 days to paint.
Quote of the week
“The increase in emotional-support certified animals is most likely due to the concern of having your companion placed in the cargo hold. Pet parents think of this as a scary place for their loved ones, but it is actually the safest place on the plane for your pet” Joanne O’Connell, The ARK’s in-transit and companion animal director
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ABC implements CargoClaims platform
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irBridgeCargo Airlines (ABC) has solidified its collaboration with CargoHub for the implementation of the CargoClaims platform. The online tool, an IATA cargo innovation award finalist in 2015, will allow ABC customers to manage their claims and pre-claim requests through a user-friendly online tool available at www.airbridgecargo.com or ru.cargoclaims.aero. The implementation process included several training sessions and meetings with ABC’s Customer Service team and IT specialists to guarantee the platform complies with the specific needs of ABC’s organisational structure and is in line with its customers’ expectations. Raoul Paul, founder of CargoClaims says: “The functional requirements received from their professional IT and claims handling teams helped us to prioritise our roadmap development plan and to add new value to our platform for our customers. We look forward to working with the professional team of AirBridgeCargo and to continue to support their business excellence programme.” Natalia Bogomolova, global customer service director of ABC
Swissport to acquire Heathrow Cargo Handling
SWISSPORT will acquire Heathrow Cargo Handling from Air France, which it held in a joint venture, subject to regulatory approval. The ground service provider will acquire the remaining 50% stake to fully own the handling company, which has provided cargo handling services at London’s Heathrow Airport since 1995. The completion of the sale is subject to Competition and Markets Authority approval and is expected in the first half of 2019. The acquisition will enable Swissport to invest in its air cargo operations and services at Heathrow, where it operates two warehouses with a total surface of 15,300 sq m. Last year, the joint venture had a workforce of 120 employees and handled over 150,000 tonnes of cargo, up 7% on 2017. Luzius Wirth, executive vice president Europe, Middle East and Africa for Swissport says: “We are very satisfied that we can strategically round off our global cargo business with this selective acquisition. On the basis of over 20 years of successful business, jointly with Air France, Swissport now has the right setup to further develop and enhance its service offering at London‘s Heathrow airport.”
Schosinsky joins Avianca Cargo
KURT Schosinsky Echeverria has assumed duties as general director for Avianca Cargo, covering cargo services on Avianca Holdings airlines as well as Tampa Cargo. In his new role, Schosinsky will be responsible for maximising cargo’s contribution to Avianca’s global network growth and air cargo operations in compliance with all the standards, procedures and regulations established to ensure efficient and safe operations. Schosinsky has a Masters in Business Administration from INCAE Business School in Costa Rica, with a senior executive program at IESE – Navarra University in New York. He has more than 20 years of experience in the logistics sector in Latin America.
Unilode signs NokScoot ULD deal
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THAI medium-haul budget airline NokScoot has awarded a unit load device (ULD) management contract to Unilode Aviation Solutions. Yodchai Sudhidhanakul, CEO of NokScoot says: “One of the key arrangements with Unilode is the replacement of NokScoot’s heavy containers with lightweight ULDs, which will take place in the first few months of our partnership.” Benoit Dumont, CEO of Unilode says NokScoot’s network is a “great fit” for its ULD pool, and is beneficial for Unilode customers flying in North Asia and the Indian subcontinent. He says: “We look forward to working with NokScoot and growing our partnership together.”
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says: “Being determined to enhance customer experience, we feel that CargoClaims is the right solution which meets our customers’ needs and facilitates ABC’s digital front-end. Customers can go online and manage their claims requests easily without additional hurdles. From our side, we will guarantee timely claims handling with all information being available online.”
Credo on Demand comes to Jeddah PELI BioThermal has extended its network in the Middle East with a Credo on Demand drop point in Jeddah, Saudi Arabia. The drop point is the latest location bringing shipping options to the region, and the facility puts Peli BioThermal on track to realise its plan to exceed 100 network stations and drop points for its rental programme in early 2019. With healthcare expenditure in the Gulf Cooperation Council projected to reach $104.6 billion by 2022, according to a 2018 GCC Healthcare Industry Report by Alpen Capital, the region is a significant key growth area for Peli BioThermal. The Jeddah facility expands the Credo on Demand rental programme by providing additional drop points of returns for reusable shipping assets providing protection of life sciences and pharmaceutical payloads transported globally. Dominic Hyde, vice president of Credo on Demand says: “Adding another drop point in key logistics hubs in the Middle East will allow our customers in pharmaceutical distribution the flexibility and convenience to choose the best drop-off location for their business needs.” The Jeddah facility is focused on receipt of Peli BioThermal’s rented shippers through their Credo on Demand programme, which provides rental options for temperature controlled containers such as Credo Cargo, Credo Xtreme and Credo Cube.
STAR deal for ASL Aviation FUND manager STAR Capital Partnership has signed an agreement to acquire Dublin, Ireland-headquartered ASL Aviation Holdings. STAR reached an agreement with ASL shareholders, Compagnie Maritime Belge and 3P Air Freighters to acquire 100% of the shareholding, subject to customary approvals. Hugh Flynn, chief executive of ASL Holdings says: “Our aim is to be the aviation services provider of choice and we will work with STAR Capital to continue to deliver on that by expanding our product offering, developing our geographical compass and focussing on core values including safety, reliability and quality.” Paul Gough, managing partner of STAR Capital says: “We will work with management to innovate and develop ASL’s business with current customers, identify and realise new opportunities and make investments that will secure cash flows and generate value.”
FAA approval for AEI 737-800SF
AERONAUTICAL Engineers has received an FAA Supplemental Type Certificate for the Boeing 737-800SF passenger to freighter conversion. The prototype 737-800, MSN 29121 was completed in December but certification was delayed due to the partial government shutdown. The AEI 737-800 offers 23.9 tonnes of capacity and can carry 11 88”x125” container positions. Robert Convey, senior vice president of sales and marketing at AEI says: “We believe the AEI B737-800SF will become the industry’s standard narrowbody freighter for the next 40 plus years.” AEI forecasts that 750 737-800s will be converted over the next 40 years with AEI carrying out over 400 conversions.
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Five years of success for Virgin and Delta
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irgin Atlantic Cargo and Delta Cargo are promising customers more choice and automation as their trans-Atlantic joint venture celebrates its fifth anniversary. The partnership has increased customers’ access to major cities in the UK and North America with a 20% rise in the number of flights since the joint venture began. Customers now have a choice of 74 daily flights serving 28 routes between the UK and US, which in 2018 carried over a quarter of total trans-Atlantic air cargo volumes. Shawn Cole, vice president of Delta Cargo says: “The original deal was a game changer for Delta transforming our ability to compete on trans-Atlantic routes with access to London Heathrow as much as providing Virgin Atlantic unparalleled access to Delta’s US network.” Dominic Kennedy, managing director of Virgin Atlantic Cargo says: “Our partnership benefits and strengthens our respective cargo businesses, leverages the best of both airlines, and, ultimately, will continue to offer new opportunities for our customers as we move forward together.” Virgin Atlantic will launch daily flights between London Heathrow and Tel Aviv on 25 September, offering a fast cargo service
B&H Worldwide has signed a three year deal to provide warehousing and efficiency solutions to next generation aftermarket services parts supplier Apex Aero. B&H will handle Forward Stocking Location services through its climate-controlled warehouse at London Heathrow, where parts will be shipped to locations around the globe.
from Tel Aviv for goods such as high value precious stones, fresh produce, high-tech and electrical products, pharmaceuticals and express shipments. The daily Airbus A330-300 flights to Ben Gurion airport will offer 20 tonnes of capacity on each service, and the decision to extend Virgin’s network to Israel will meet growing demand for cargo capacity, with total volumes into Israel increasing 17% in 2018.
ACS opens Atlanta office
Airway Bill’s
AIR Charter Service has opened its sixth office in the US, in Atlanta, the company’s 24th worldwide office with more to open this year. Joseph Chiantia will be in charge at the Atlanta office, having previously worked at the New York office. Prior to joining the company, Chiantia worked for the US Coast Guard, including flying on search and rescue missions. Speaking at the announcement, president of American operations Richard Thompson says: “We identified Atlanta as an important hub for both passenger and cargo flights a long time ago. Our Atlanta client base is considerable and has been built up over a number of years by our other US offices and now is the time to provide our customers here local representation.” He adds: “With a GDP of almost $400 billion, the city of Atlanta’s economy is the tenth-largest in the country and among the top 20 largest in the world. The city also boasts the nation’s third largest concentration of Fortune 500 companies, as well as hosting the global headquarters of corporations such as Coca-Cola, Delta Air Lines and UPS. The city offers our office here the potential to become one of ACS’s top performers.”
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Who parked a 747 in the garden? AFTER a five-day mega transport from Amsterdam Airport Schiphol, the Corendon Boeing 747 arrived in the garden of the Corendon Village Hotel on the morning of 10 February. The former KLM aircraft, ‘City of Bangkok’ will be converted into a 5-D experience about the 747 and the history of aviation. After 30 years of reliable service, the repainted aircraft, now in the tour operator’s colours, now decorates the hotel garden. Visitors will be able to walk on, over or under the aircraft and visit places that
LUFTHANSA Cargo’s board member for operations, Harald Gloy has been elected chairman of the board at Air Cargo Community Frankfurt. He succeeds Soeren Stark, who joined the Lufthansa Technik executive board in Hamburg at the beginning of the year. During Gloy’s last job at Lufthansa Technik, he was a member of the board of Hamburg Aviation and member of the supervisory board of the Center for Applied Aerospace Research in Hamburg. TURKISH Cargo has moved its first air cargo shipments from Istanbul’s new airport on domestic and international routes. The first domestic shipment was carried on an Airbus A321 that landed in Ankara on 4 February. The first international shipment went to Nicosia, Cyprus on the same day flying on a Boeing 737. UPS aircraft mechanics and related employees have voted to ratify their new contract, making UPS Air Cargo mechanics the highest-paid in the country. They will receive an immediate 17.72% pay increase, raises each year resulting in a 32.61% increase from current rates by the end of the contract and the protection of a healthcare package with no premiums. The contract is amendable on 1 November 2023.
WFS invests in pharma in Copenhagen WORLDWIDE Flight Services (WFS) will invest in a new pharma facility at Copenhagen Airport, covering an area of 1,500 sq m. Construction will begin in April, and the new building will provide end-to-end handling in a temperature-controlled environment for 2-8C pharma products incorporating acceptance, offload, pre-storage, build-up and storage. Accessible through four dedicated cargo doors, the facility will accept loose shipments and pre-built units, offering a storage area large enough for 300 Euro pallets and 30 PMC pallets. WFS expects the construction process to be completed in time for the new building to undergo IATA CEIV Pharma pre-assessment in July. The cargo handling agent is also upgrading the existing temperature control areas in its facility in Copenhagen to handle growing volumes of pharma products requiring 15-25C, making this the second investment in pharma facilities in under two years. John Batten, EVP cargo for Europe, Middle East, Africa and Asia at WFS says: “This new investment in Copenhagen reflects our continued commitment to support airport cargo communities with growing pharma volumes.”
ACWBITES
are not normally accessible to the public. They can visit the cargo area, learn about refuelling, look in the kitchen of the business class and the cockpit on the upper deck. They can even do a wing walk on the 30 metre long wings. Visitors can also take a journey through the history of aviation from the first serious flight attempts around 1900 to the development of the Boeing 747. Atilay Uslu, founder of Corendon booked a room in the hotel, at the spot where the nose of the 747 would be placed in front of the window. He says:
“When I opened the curtains this morning, I saw her in full glory. I realised that after months of preparation we really succeeded in getting the plane to its final place with a lot of fitting and measuring. That kind of takes your breath away.” The 747 was transported eight kilometres over the Schiphol airport area and then another 4.5 kilometres through fields. It was transported on a trailer provided by heavy transport specialist Mammoet, and a special road was constructed so it did not sink into marshy land.
aircargoweek.com
FEDEX Express has inaugurated its ramp operation at Luis Munoz Marin International Airport in San Juan, Puerto Rico. The new ramp allows for better aircraft positing to facilitate on-time departures and samebusiness-day services, including to St Thomas and St Croix in the US Virgin Islands. The 6,500 sq m facility in Carolina integrates delivery and pick-up air operations under one roof. Sorting capacity is up to 2,400 packages per hour, and 14 truck-loading docks enable rapid movement of freight across different modes of transport. KALE Logistics Solutions has relocated its regional office in Delhi, India with plans to expand their work in digital Trade Facilitation and enabling Ease of Doing Business. COO Rajesh Panicker says the company is delighted to intensify its work on digital Trade Facilitation platforms for the government and assist them on reforms focused on Ease of Doing Business in India. He says: “This is in keeping with our commitment to empower and integrate all stakeholders of the logistics value chain to enable, accelerate and facilitate global trade.” CARGO volumes at Brussels Airport fell by 3.2% in January to 55,030 tonnes with a major decline in freighter traffic. Total flown cargo was down 5.3% to 40,885 tonnes with full freighters falling 17.3% to 11,283 tonnes as airlines cut back their flights. Express was down 5.2% to 16,925 tonnes with weight falling as e-commerce increased due to being lighter than traditional cargo. Belly cargo was up 8.5% to 12,678 tonnes. Trucked cargo was up 3.5% to 14,145 tonnes. ROYAL Air Maroc will connect Boston with Casablanca from 22 June using a Boeing 787-8 Dreamliner. The Boston Logan International Airport – Casablanca Mohamed V service will operate on Mondays, Thursdays and Saturdays from 22 June to 14 September, and on Wednesdays, Fridays and Sundays from 18 September. AIR Transat will an additional flight between Montreal and Bordeaux for the summer using an Airbus A321neo LR. The flights will operate on Mondays, Wednesdays, Thursdays and Saturdays.
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Love is in the Air cargo
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Valentine’s Day special
id you remember to get that special someone a beautiful bunch of flowers? There is a good chance it was transported by air, with thousands of tonnes travelling from flower producing regions to consumers around the world. Here, we round-up a few of the major shipments that travelled around the world: UPS transported an estimate 89 million flowers for Valentine’s Day, up one million from the number delivered in 2018. To ensure peak freshness, UPS sends shipments from Latin America through Miami International Airport to final recipients in less than two days. UPS added 50 extra flights to
handle more than 517,000 boxes. Panalpina flew an entire Boeing 777 Freighter packed with freshly cut roses from Nairobi to Sydney in time for the holiday. Kenya is one of the world’s largest exporters of cut-flowers, its second largest export commodity after tea. The ‘Love Plane’ was the first direct freighter flight from Nairobi to Sydney with a 777F. Emirates SkyCargo operated additional freighter services from flower producing regions, with daily scheduled freighter services flying out of Nairobi, Kenya and Quito, Ecuador to destinations
around the world. Nine freighter flights were operated over and above scheduled services, with each Boeing 777 Freighter capable of transporting up to 100 tonnes of cargo. Avianca Cargo carried out 162 cargo flights flying 11,688 tonnes of flowers in time for Valentine’s Day. The flights from Bogota, Medellin and Quito had a capacity of 40-100 tonnes to transport flowers including roses, carnations and bouquets from Bogota; pompoms, hydrangeas and chrysanthemums from Medellin; and roses and gypsies from Quito. Avianca Cargo operated 14 charter flights to Miami, Los Angeles in the US and San Juan in Puerto
Rico. In addition, Avianca Cargo flew more than 600 tonnes of perishables to Amsterdam, Brussels and Maastricht through its Airbus A330F weekly operation and its commercial alliance with Emirates SkyCargo. LATAM Cargo has carried more than 9,000 tonnes of flowers in time for Valentine’s Day, flying to the US, Netherlands and China and other destinations. During the four weeks preceding Valentine’s Day, LATAM Cargo transported flowers from Bogota and Medellin and from Quito to markets in North America, Europe, Asia, South America and Oceania. Red and pink roses, mixed bouquets, carnations, chrysanthemums, iris, gypsophila and greenery were the stars of the season that started on 14 January and ended on 8 February. 8,050 tonnes went to Miami, another 500 tonnes to Amsterdam and rest was split with other destinations. More than 900 tonnes of roses were transported on Quito – Frankfurt, Bogota – Frankfurt and Nairobi – Frankfurt routes by Lufthansa Cargo, the equivalent to some 10 million roses imported over three weeks. Most of the roses begin their journey in Bolivia, Ecuador or Kenya, which have ideal climates for cultivating these flowers and the best growing conditions all year round. The flowers only remain at Frankfurt Airport for a short while, being transported on the Main river to other German cities, but also neighbouring countries including Austria and Switzerland. Air France KLM Martinair Cargo (AFKLMP) has met demand for Valentine’s Day flowers by shipping 3,300 tonnes to Europe in a two-week period. Using Boeing 747-400F and combi-aircraft, AFKLMP was able to provide main deck capacity to and from Nairobi, Quito and Bogota. For the first time, four Air France Boeing 777 Freighter flights from Nairobi to Paris were re-routed via Amsterdam to support the demand for flowers and Dutch trade. Bellies of long-haul passenger aircraft and interline partners were also filled with flowers, supplying European markets primarily in the Netherlands, UK, Italy, France and Russia, as well Asia, particularly Japan. Turkish Cargo has transported 4,000 tonnes of flowers from Nairobi and Quito on charter flights in time for Valentine’s Day. Between 1 January and 10 February, the flights travelled from Nairobi to London Stansted, Tokyo Narita, Maastricht and Riyadh, and from Quito to Amsterdam, Beijing, Manila, Jakarta and Taiwan in addition to its charter flights. IAG Cargo has shipped millions of roses for Valentine’s Day, with more than 2,500 tonnes of fresh flowers using its perishable Constant Fresh product in 2018. To make sure flowers arrive in perfect condition, temperature is key, with most varieties requiring an average temperature of 4-5C. IAG Cargo has embraced new technology, with data loggers not only providing GPS locations but temperature and humidity levels, which are popular with tropical and exotic flower shipments.
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DHL provides answers with Global Connectedness Index DHL has released the fifth edition of the DHL Global Connectedness Index, a detailed analysis of globalisation measured by international flows of trade, capital, information and people. The report represents the first assessment of globalisation across 169 countries and territories since the Brexit referendum in the UK and the 2016 US presidential election. It says despite anti-globalisation tensions in many countries, connectedness reached an all-time high in 2017, as the flows of trade, capital, information and people across national borders all intensified significantly for the first time since 2007. The index measures the depth and breadth of international connections, with the Netherlands topping the list, followed by Singapore, Switzerland, Belgium and the United Arab Emirates. Eight of the top 10 most connected countries are located in Europe, due to trade and people flows while North America is the leader of capital and information flows. John Pearson, CEO of DHL Express says: “Even as the world continues to globalise, there is still tremendous untapped poten-
tial around the world. The GCI shows that currently, most of the movements and exchanges we’re seeing are domestic rather than international, yet we know that globalisation is a decisive factor in growth and prosperity.”
The report was commissioned by DHL and authored by Steven Altman, Pankaj Ghemawat and Phillip Bastian of the New York University Stern School of Business and the IESE Business School. Altman says: “Surprisingly, even after globalisation’s recent gains, the world is still less connected than most people think it is. This is important because, when people overestimate international flows, they tend to worry more about them. The facts in our report can help calm such fears and focus attention on real solutions to societal concerns about globalisation.” The report revealed vast differences between levels of globalisation in advanced versus emerging economies. Emerging economies trade almost as intensively as advanced economies but advanced economies are more than three times as deeply integrated into international capital flows, five times for people flows, and almost nine times for information flows. While leaders from large emerging markets have become major supporters of globalisation, emerging economies’ progress catching up terms of global connectedness has stalled.
The world is much less globalised than people realise, but it is contentious THE world is much less globalised than people imagine, according to the CEO of DHL Express, John Pearson. Speaking on 12 February at the National Maritime Museum in Amsterdam, Pearson said there are a lot of misperceptions around globalisation, which is more contentious than a decade ago. He said: “Despite many misperceptions, we are far less globalised than people imagine. It is only when we get down to the details that misperceptions go away. We need to focus the agenda, the stakes are high but the benefits are enormous.” Despite recent global issues such as the UK Brexit vote, US-China trade conflicts and other issues, Pearson admits to being an optimist and says there is a lot to be positive about, saying “I don’t think we’re about to knock trade off its perch”. He said people, trade and companies are self-resuscitating with the concept of ‘I have you want’ prevailing. Pearson said: “The benefits of a globalised world are enormous, avoiding conflict helps countries and nothing does it like trade. People in highly open countries are paid three to nine times more. This is a good news story. If we get it right, it may be a cliché but the world is a far better place.” Speaking in the most connected country in the most connected region, Pearson said four billion out of 5.2 billion globally have a smartphone, providing access to information. He said: “Globalisation is improving year-on-year
but there is more to do. Globalisation is too big to fail, we have to take it seriously and we all have a role to play.” Pearson was followed on stage by Steven Altman, senior research scholar at the New York University Stern School of Business and executive director of Stern’s Center for the Globalization of Education and Management. His research focuses on international flows of goods and services, capital, information and people, examining how cross-country differences and distances shape the flows, and analyses implications for business and public policy. Giving his presentation, he explained that rather than collapsing after the election of Donald Trump as US president and the Brexit vote, globalisation has increased with the index rising to record levels in 2017. Altman says trade depth is still below the 2008 level, having fallen in 2014 but is going up again. He said: “All flows went in 2017. There is anti-globalisation rhetoric but international flows held up surprisingly well. Most flows held up in 2018. During 2018, public policies turned from rhetoric to reality with tariffs and tighter restrictions on foreign takeovers.
Electric vehicles are a partial solution ELECTRIC vehicles are a very useful way of reducing emissions, but bicycles are much more efficient for inner city deliveries, according to Ronald Leunisse, managing director DHL Express The Netherlands. After explaining the extend of DHL’s network in the Netherlands, which includes the air hub at Amsterdam Airport Schiphol, trucking services to Brussels and several service centres, Leunisse explained why bicycles are important for the last mile. He said: “One trend of urbanisation is that people live in cities, this increases pressure on historic cities. Governments are taking measures to protect city centres, but if congestion comes from a traffic jam, it does not care if it is diesel or electric, it’s still a traffic jam. Customers are increasingly asking about the environmental footprint, so DHL are combining electric vehicles with bicycles. The service centre
The index may go up, most international flows carry significant momentum.” Altman reinforced what Pearson had said earlier, saying that international flows are smaller than people think. He said: “The world is less globalised than people think it is. The typical level of guesses of globalisation is 30-40% but it is actually significantly lower.” He cited figures that surveys estimated 41% of trade was exported when the actual figure was 20%, foreign capital was 7% compared to the estimated 38%. Other figures showed that only 3% of people lived outside their own country. Altman said: “People who overestimate globalisation tend to underappreciate the need for foreign markets. People who are worried about globalisation are concerned about increased climate change and other issues.” He said that the Netherlands is the most globally connected country, as it has been since 2005. Altman said that small countries tend to lead depth but larger countries have greater breadth. He said: “Deeper connections can accelerate growth, countries can beat expectations. The top depth outperformers are Cambodia, Malaysia, Mozambique, Singapore and Vietnam. Emerging economies are less connected than advanced economies and are no longer catching up. The world is more connected than ever before but less connected than people think.”
When ACW staff are let loose ...
is connected by road to the city hub, with the last mile being done on bike. In Amsterdam, DHL also has a Floating Service Center, a boat on the canal where cyclists can go and pick up parcels for delivery. Leunisse says: “The benefits are green operations, we are closer to the customer, it is more efficient, there are no parking problems and it is cheaper. Cycling is almost two times more productive in the city centre than road vehicles. The city hub has benefits and this is a scalable solution.”
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Deputy editor James Muir tries out a DHL delivery bike for size
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ACW: If you could compare yourself with any animal, which would it be and why? Schoenberger: A wired-hair dachshund (just google it). They are small and inconspicuous. But they set the tone in the family, as we were allowed to experience for ourselves as kids. ACW: What was the last gift you gave someone? Schoenberger: I was in Florida for Christmas and New Year. I brought some presents from there. ACW: Do you prefer to be right, or be liked? Schoenberger: Easy. I am used to be liked because I am right.
ACW: If you had a choice between two superpowers, being invisible or flying, which would you choose? Schoenberger: Can I also fly between times? Not. OK, well nevertheless then it is flying. And I would start my own air cargo business, of course.
ACW: If you had to be shipwrecked on a deserted island and all your needs, such as food and water, were taken care of, what two luxury items would you want to have with you? Schoenberger: A fluffy towel. And a smartphone with good coverage and unlimited usage. ACW: If you could have dinner with anyone from history, who would it be and why? Right now? Schoenberger: Since you are a British newspaper you may be can make it happen: the Queen. And as she is politically neutral in the public, I would like to ask her about her opinion on Brexit.
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DR ROBERT SCHOENBERGER The popular Exhibition Group Director of events organiser Messe Muenchen opens up to Air Cargo Week about the very special person he would like to entertain to an English cup of tea.
ACW: What is the most interesting fact about you that we would not learn by looking at your resume? Schoenberger: My right arm is two centimetres longer than my left one. ACW: Do you wear jeans outside of work? Schoenberger: Not necessarily – I also have a variety of shorts and some skiing pants, which I need some weekends. ACW: We finish the interview and you step outside the office and find a lottery ticket that ends up winning 10 million euro. What would you do? Schoenberger: With the lottery ticket? Well, I would redeem it at the next lottery store.
ACW: What is the most embarrassing thing you have ever worn? Schoenberger: I remember a summer vacation in Croatia, when I forgot my swimming trunks during a trip to the sea. My mother gave me a bikini bottom from my sister. I was very ashamed. That was five or six years ago - no, I was five or six years old.
ACW: If you were on Death Row, what would be your last meal? Schoenberger: I like any kind of Spaghetti. If you need a good recipe for a fried Zucchini sauce, just ask me.
ACW: What would I find in your fridge right now? Schoenberger: Essentially things that need to be cooled and that I want to keep fresh. I strive for a consistent cold chain. ACW: What are the best and worst purchases you’ve ever made? Schoenberger: A few years ago I bought a
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Air France’s A380 decision narrows asset managers’ options AIR France’s decision not to renew leases for A380 jetliners, following the lead of Singapore Airlines, increases the pressure on managers of closed-end A380 funds to find new lessors or sell the planes for parts. No option looks easy. German retail investors have placed approximately €1.6bn in a total of 21 Airbus A380s through closed-end funds. The lessees are Singapore Airlines, Air France and Emirates Airlines. Lease extensions would ensure that the funds receive income well beyond the typical 12-13 year duration of the debt taken on to buy the aircraft. Conversely, if the airlines return the aircraft at the first possible opportunity, when the 10-year leases expire, that leaves the funds with residual debt to pay back, plus the costs of storing the aircraft, and the challenge of finding a new income stream. “The A380 has proved much less popular with airlines than passengers which is reflected in the funds trading today at around 46% on average of their initial value,” says Frank Netscher, senior analyst at Scope Analysis.
Out of favour
Best seller? Vespa from 1972. A beautiful lady - unhappily with a few major quirks. Unfortunately, I’m not a gifted mechanic. The scooter never really drove. Not once. Now I changed to another means of transport. An electric convertible smart car. It’s fun and less vulnerable. ACW: Are you afraid of clowns? Schoenberger: Not at all. Still today for me clowns are the highlight in the daily circus of business life.
ACW: What would your autobiography be called? Schoenberger: It was a pleasure to meet you.
A mistake? aircargoweek.com
The A380 has fallen out of favour partly because carriers have found too few routes to regularly fill the plane’s 500-plus seats. They have also baulked at the four-engine A380’s relative high running costs compared with smaller two-engine, long-distance aircraft such as Boeing 787 and new versions of the 777 and Airbus’s own new A350. Airbus has struggled to find new takers for plane beyond its launch customers. Since the return of five leased aircraft, the asset managers of the funds in question have tried to find new lessees. So far, only one A380 has been leased to the Portuguese airline Hi Fly for just 70 months. Two more A380s are in storage. The other two A380s will be sold for spare parts. Leasing contracts for another 16 Airbus A380s owned by German closed-end funds will expire over the next few years. The five A380s leased from Air France will be returned between 2020 and 2024. Should Emirates also waive extension option, a total of twelve A380s would be returned by the airlines between 2020 and 2022. If fund managers cannot find new lessors, these planes would have to be dismantled and sold for spare parts, confronting the parts market with the risk of oversupply. “This could have a further negative impact on the performance of the funds,” says Netscher. Principally, it is the A380 passengers who are wondering why this type of aircraft has so far failed to achieve greater commercial success. Operating an A380 only pays off at very high load factors. However, there are not too many routes on which more than 500 seats can be filled regularly. The combination of the difficulties of operating an A380 at full capacity, competition from more efficient models with lower operating costs and restrictions on aircraft size at some airports make the A380 unattractive for many airlines. An assessment which is pitiful from the point of view of many passengers who find the A380 to be pleasing, but economically understandable. This is also reflected in Emirates’ current consideration of switching some outstanding A380 orders to the smaller A350. A decision that could in fact mean the end of production. On 14 February, Airbus announced that production of the A380 would end in 2021.
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ACWBITES
Qeshm Air starts operation to Muscat
Have you voted yet?
V
oting is now underway for the ACW World Air Cargo Awards 2019. Voting is secure, confidential and restricted to readers of Air Cargo Week and ACWDigital, plus other bona fide members of the worldwide air logistics community. All votes must be cast online using the official voting form on the website. Categories are - Airfreight Forwarder of the Year 2019; Air Cargo Handling Agent of the Year 2019; Air Cargo Charter Broker of the Year 2019; Airport of the Year 2019; Air Cargo GSA of the Year 2019; Air Cargo Industry Customer Care Award 2019; Air Cargo Industry Achievement Award 2019; IT for the Air Cargo Industry Award 2019; Air Cargo Industry Marketing & Promotional Campaign Award 2019; Cargo Airline of the Year 2019. Voting closes on Tuesday 30 April, 2019
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IRANIAN carrier Qeshm Air has launched services to Muscat International Airport, commencing on Tuesday February 5. The first flight was a direct scheduled route from Qeshm to Muscat. The airline has scheduled two weekly flights, on Monday and Thursday, using a Fokker 100 aircraft. Sheikh Samer Al Nabhani, Oman Airports chief commercial officer stated: “The airport has completed its preparations to welcome
Qeshm Air’s arrival at Muscat International Airport, strengthening, even more, the importance of Omani-Irani relations established centuries ago, in addition to the continuous growth of Iranian inbound tourism in Oman. We are proud to announce that Qeshm Air has joined the Oman Airports family.” Qeshm Air has a fleet of 22 aircrafts to which include; Fokker 100, Avro RJ 85&100, Fokker 50 and A320-214 aircraft
Multimodal launches recruitment initiative THE challenge of attracting, retaining, and developing the next generation of industry professionals in the face of a growing skills shortage in the logistics industry will feature in a series of workshops and panel discussions at Multimodal 2019, from 18 to 20 June.
“We need to challenge the view that logistics is about trucks and sheds and show young people that it’s fast-paced, dynamic, and ripe with opportunities for personal growth and career development,” said Ian Nichol, head of logistics at Career Ready UK.
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JOHN Perry, managing director at SCALA, a leading provider of management services for the supply chain and logistics sector, has told the press: “With EU negotiators seemingly ruling out the possibility of a second referendum, Labour demanding customs union membership, and Theresa May still doggedly pursuing her universally unpopular agreement, we seem to be hurtling ever-faster towards a no-deal Brexit. “The best possible outcome for British business over the next few weeks would be an extension to Article 50. “As businesses, we’re often reluctant to get involved in politics, and have previously stood to one side. But with so much at stake, we now need to make our voices heard. LOGISTICS and freight specialist Priority Freight will be exhibiting at the 11th Annual Worldwide Conference of the WCA at the Suntec Singapore International Convention and Exhibition Centre between 18 and 22 February 2019. The time-critical logistics specialist will meet with other industry professionals, gathering for a week of accelerated faceto-face meetings with agents from around the world. SIEMENS Postal, Parcel & Airport Logistics (SPPAL) will present its complete hardware and software portfolio for airports and airlines at the inter airport South East Asia in Singapore.
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LIVE ANIMALS
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From Wall Street’s jungle to The ARK Joanne O’Connell, The ARK’s In-Transit and Companion Animal Director manages all aspects of the operation, client relations and finances for The ARK Pet Oasis, a 24/7, 365-day facility for in-transit companion animals and works closely with US federal agencies including the CDC, Customs and USDA as well as airlines to service the needs and promote the welfare of companion animals travelling as live cargo.
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’Connell admits her unlikely career before The ARK in the famous Wall Street did provide some unlikely skills when she joined the New Yorkbased animal centre at JFK. She says: “While my previous Wall Street professional life didn’t necessarily give me any animal handling skills, I learned how to multi-task, manage a team and provide exceptional customer service – all skills I now apply at The ARK’s Pet Oasis when co-ordinating the import and export logistics of pet travel in and out of the US.” She is involved in handling the smaller animals at The ARK just as the issue of ‘emotional support’ animals is becoming a big problem on US aircraft as airlines simply want them to go away. O’Connell has a view on this topic: “The increase in emotional-support certified animals is most likely due to the concern of having your companion placed in the cargo hold. Pet parents think of this as a scary place for their loved ones, but it is actually the safest place on the plane for your pet, if they are not specifically trained as a Certified Service Animal or an ESA. While some individuals have medical
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concerns that are mitigated by service or support animals who assist with their day-today well-being, for the most part, animals do not belong in the passenger cabins of aircraft for a variety of reasons including their impact on other passengers, sanitary concerns and animal welfare. “However, with airline carriers adjusting to the new realities of security requirements, animal welfare issues and legal liability, it’s essential for travellers to obtain appropriate documentation from their veterinarian and a health care professional in advance when travelling with emotional-support animals on planes.” There are three ways for pets to travel by air. The first is in-cabin with the passenger as carry-on with a weight limit of approximately 8.2 kg. The second way to travel is to check your pet as
‘excess luggage,’ whereby he/ she is in a travel crate and placed in a pressurised cabin with checked luggage. Note if the pet is travelling as ‘excess luggage,’ the pet must be accompanied by the passenger throughout the entire trip. Frequently, pets will travel into JFK as excess baggage with their ‘pawrents’ and will be going onto another flight as cargo and in these instances the owner needs assistance for pick-up, post-flight care, shortterm kennelling and check-in for next flight.
of quarantine ‘isolettes’ that could be used for dogs or cats that have fleas, kennel cough or any other communicable illness. Proactive measures are always taken to keep the animal separated and in good health; if an animal is sick, the owner is contacted immediately and provided with status and veterinary recommendations, says O’Connell.
Comply with requirements
“Fortunately, when shippers comply with the requirements of IATA, governmental agencies and airline specific requirements, it is extremely Live animal cargo rare for animals to die while in transit,” she says. “If there is a concern for an animal’s wellShe says: “The third way an animal can travel is categorised as ‘live animal cargo,’ which is being post-flight, or if it arrives unresponsive, when our team at The ARK at JFK provides a the airline contacts our team immediately for variety of services for the animals. Travelling assistance and will also contact the owner. The as live animal cargo is also generally better and animal is picked up directly from the aircraft safer for pets since it increases general animal and transferred to The ARK Pet Oasis. The airline and the owner will decide next welfare, reduces potential disease transmission and the shipment can be identified and tracked steps, whether the owner wishes to take the dog throughout its journey. Our services include or if they wish us to send the animal for a necmeeting the passenger post-clearance and ropsy exam. Depending on the origin and health documenoffering arrival services such as outdoor relief in a secure area, travel crate cleaning, plenty tation for that animal, the Center for Disease of food and water, and bathing. When animals Control (CDC) may mandate a necropsy and travel as live cargo, the carrier is required to rabies testing.” There is no mandatory quarantine for comemploy trained staff to handle your animal and panion animals such as cats track or trace your pet with and dogs travelling into the official documentarian while US. in transit. If there is a concern with “When animals travel as their health, the CDC is immeexcess luggage, there is a risk diately notified and may that untrained personnel may impose quarantine. However, handle your pet and that Fido Equine and Aviary Import may not be properly identified, Quarantine is mandated by potentially being seen – or the USDA. assumed – as a simple piece of The ARK features a stateluggage.” of-the-art Equine Import The ARK at JFK has welQuarantine Center where comed sloths, capybaras, a our staff observes the horses porcupine, ferrets, birds, an and guides them into specialotter, turtles and a pot-bellied ized climate-controlled stalls pig, as well as dogs, cats and equipped with bedding and rabbits. O’Connell: Love it! natural light, as well as an AviWhile many animals travel ary Quarantine facility set up singly, The ARK does handle groups of creatures on occasion. O’Connell says: for in-transit birds. O’Connell started at The ARK in November “We had a shipment of 125 ferrets that required pre-flight care. Also, commercial shipments of 2016. She had been watching the development birds travel in groups and we can see anywhere of the facility for a while and felt with her management background, dog experience and love between 20-250 in one shipment. “ARK Pet Oasis has received arrivals of of animals, it was a “natural and perfect fit.” She acknowledges as a professional she canimproperly documented animals – up to 30 dogs at a time. Shippers must comply with the not become emotionally involved with any International Animal Transportation Associ- animal she handles. She says: “We love them all. Rescues are the ation (IATA) regulations for travel crates and containers which also limits the number of best. For the most part, animals are only with animals that can be in certain size crates as us for a short time and we are fortunate enough well as governmental requirements for health to experience the love and joy they bring to their owners.” documentation.” Asked simply whether O’Connell had any The centre has a number of on-call veterinarians available to check the status of an animal further thoughts on working at The ARK, she is with questionable health. There are a number admirably direct: “Love it!”
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Etihad brings Longines to Hong Kong
IAG Cargo launches pet service
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AG Cargo has launched a new pet transportation service on British Airways flights from the UK through its partnership with PetAir UK. The service helps to remove the stress of pet travel arrangements, with customers booking through IAGCargo.com. Through the partnership, PetAir UK offers home pet collection services and can manage import permits, export documents and fulfil veterinary requirements in house. All pets are flown in a temperature-controlled environment in customised crates that are lined with layers of absorbable vet bedding, helping ensure pets are comfortable, relaxed and clean. Offering customers an improved online booking experience and custom crates, the service coincides with the unveiling of IAG Cargo’s new meet-and-greet pet area at London Heathrow Airport. Daniel Johnson, manager global products at
IAG Cargo says: “We are delighted to partner with PetAir UK to offer this service. Our customers – and their pets – are always our priority and we are continually innovating to improve our service across all our operations. “IAG Cargo’s dedicated team of skilled and passionate animal handlers work alongside PetAir UK to ensure the highest level of care for pets for their journey to any of our 350+ destinations.” Luke Gamble, veterinary director at PetAir UK says: “It’s a privilege for us to partner with IAG Cargo and British Airways. Our team offers a wealth of expertise, with many of us being vets or vet nurses. “We share IAG Cargo’s commitment to ensuring the highest standards every step of the way, making the partnership a fantastic fit. The new service allows us to elevate the standards of pet shipping to a new level and give our customers an elite service and total peace of mind.”
ETIHAD Cargo was chosen to transport show jumping horses from Belgium to Hong Kong for the annual Longines Masters taking place on 15-17 February. This is the third consecutive year that Etihad Cargo has transported the elite horses, with a dedicated charter flight from Liege delivering 68 horses accompanied by professional grooms and a vet for the round-trip. Wiam Al Qamshui, business development manager responsible for Etihad Cargo’s SkyStables equine product says: “We move horses all around the world from places like Barbados, Bogota and Japan, as well as the key Europe and Middle East equine markets. Today’s announcement comes on the back of a record 2018 that saw us transport over 2,000 horses for the first time.”
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Equestrian events organiser EEM World chose Etihad Cargo to carry the consignment, with founder and CEO Christophe Ameeuw saying before the flight: “We are delighted to entrust the safety and care of these world class show jumping horses to Etihad Cargo this year again. We look forward to their arrival at Hong Kong airport next Monday 11 February and kick off of the Masters and the Asia Horse Week.” The horses were transported on a Boeing 777 Freighter equipped with a specially designed ventilation structure and temperature control system. It is also equipped with EASA and FAA certified horse air stalls, designed with non-slip floors that are covered with absorbent materials and stocked with hay and water to keep the horses fed and hydrated throughout the flight.
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UNITED KINGDOM
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Heathrow will carry on, whatever Brexit throws up
The UK is set to leave the European Union on 29 March but still has not agreed an exit deal. As Theresa May flies around Europe desperately trying to get concessions to make the deal acceptable to parliament and her Conservative Party, the air cargo industry is getting on with business.
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s the UK approaches a historic moment, Heathrow Airport’s head of cargo, Nick Platts is confident that the cargo community will get on with the job at hand. With Brexit mere weeks away, there has been a lot of talk about how businesses will cope, with the potential for Kent becoming a lorry park as lorries try and get through Dover. Questionable contracts have been made with shipping companies with no ships, wanting to operate to ports without the appropriate infrastructure, and taking their terms and conditions from takeaway restaurants only to have the contract terminated, among other issues. While there could be issues at Heathrow, Platts is not too concerned. Pointing out that Heathrow is already set up for trade with non-EU markets, he says: “I am confident that we’ll carry on largely as we are today.” He admits there will be some “teething problems” as people get used to the new arrangements, but adds: “I believe the Heathrow cargo community is getting ready and will do what they always do in the face of operational pressures – just get on with it.”
Collaboration
The airport has worked very hard with organisations to instigate changes, collaborating with the Border Delivery Group, HMRC, Dft, DEFRA, GLA, Hillingdon Council and the City of London for processes and inspection requirements for European Union trade. Heathrow is also working closely with operational partners such as the Metropolitan Police, Highways Agency and the Local Resilience Forums on contingency plans. For EU trade, Platts says: “It will depend on the customs arrangements in place and provided we have a frictionless border, I don’t expect much to change. The EU27 countries account for around 7% of our total flown cargo, and trucked cargo is likely to be similar in tonnage terms.” While all of this is going on, Heathrow is continuing to handle high volumes of cargo. Cargo for
2018 was around the same level as 2017, which was an exceptional year for the whole industry. January 2019 figures have been released, and they are down 1.8% year-on-year to 130,692 tonnes. Platts says the peak season was much quieter, and unusually the Easter peak was marginally higher than October. IATA is forecasting slower growth in 2019 than 2018, with Platts commenting: “Given our link in the global picture, I expect we’ll see the same.”
Efficient cargo operations
As ever, Heathrow is working on making cargo operations more efficient. Platts says there have been improvements through better collaboration, especially from the peak contingency plans. He says: “After the very challenging peak in 2017 where we saw disruption in the cargo estate, we’ve worked closely with the cargo community, Segro, and our other partners on ways of keeping cargo flowing. I’m pleased to say that we haven’t seen a return of those 2017 issues and the feedback I’m getting is that the 2018 peak was much better.” There has been “fantastic engagement” with the cargo community, who he would really like to thank for their help in 2018.
Platts’ team has worked with specialists at Alchemmy to assess how the community could work smarter to make the most of Heathrow’s capital investment. He says: “The insights the team have generated from all of that engagement are making a real difference to our plans and we’ve gained a much better understanding of how we can lead the transformation of Heathrow’s cargo proposition.” There are a number of projects underway and the business cases are being refined. A truck call-forward facility has been designed and the inclusion of technology to link it with the cargo sheds is being investigated. Progress is being made on generating cargo-specific forecasts and insights, with the focus on making sense of FFM data required from airlines. The most complex project is centralising border examinations. Platts says: “We’re still developing the business case so it’s a little early to be specific on what will be delivered and how that will translate to more efficient and predictable operations.” As Britain looks to the future outside of the EU, Heathrow will continue to link exporters to the world. Platts says: “As we look further ahead, especially with our plans for expansion, there will be increased opportunities for exporters to use Heathrow to deliver their goods quickly and reliably to long-haul markets that will become more important as we leave the EU.”
Larger offices and additional facilities required for HAE Group FOLLOWING another year of success, HAE Group will move into larger offices at East Midlands Airport and take on additional facilities, UK & Ireland director John Ward tells Air Cargo Week. He says 2018 was a strong year with new airline representation and significant solutions and handling business growth. HAE started representing Oman Air in the Midlands, North, Scotland and Northern Ireland. The solutions business grew 50% year-on-year while the handling sector doubled due to e-commerce growth at East Midlands. HAE has kicked off 2019 with sustained growth in all sectors. Ward comments: “Once we are over the current uncertainty we believe any backlog of pent up demand will be released into the market, on both imports and exports.” Yes, the current uncertainty, Britain will be leaving the European Union in a few short weeks and Prime Minister Theresa May has been busy meeting European leaders to try and win concessions to make her deal acceptable back home. Having flown around Europe, racking up
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air miles and getting her proposals rejected by various men, British industry and businesses are getting on with their jobs, ensuring whether it is deal or no deal, business will continue. Ward admits that it is difficult to forecast how imports and exports will be affected, but says: “Change presents opportunity, if you are able to adapt”. He adds: “We offer services within, from, and to the EU; however, we also control cross-trade cargo from the UK which doesn’t touch EU territory and we deliver all of this through our overseas offices, and the excellent partners we work with in global locations.”
Planning for Brexit HAE has invested in additional customs personnel “should they be required at our UK facilities to assist if required”. Ward says: “There has been a lot of planning to ensure that the impact of Brexit can be positive. Our Solutions team have diversified operations to ensure that in event of border issues we can
convert ground based product onto aircraft.” HAE has invested in its Customs Compliance and increased headcount by 100% and upgraded technology. Ward explains: “Within our technology strategy by incorporating geo-compliance elements into our in-house GSSA portal, and we have sourced external software which helps our internal systems interact with the new customs CDS system in the UK.” Whatever happens in the coming weeks and months, the multi-platform service provider is in a strong position, offering customers a “one-stop shop” where they can use blue-chip carriers. HAE can also provide assistance with
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customs formalities at origin, destination and transit point, and collection and delivery of cargo. Ward says: “We can provide these services in a modular fashion if that is what the customer needs, or we can integrate them into an end-toend service offering if they prefer that too. The customer has complete control of their choices.” Looking to the future, Ward sees growth in emerging markets such as Africa and South America. He says: “We also see our unique technology led services be of use in the cross border e-commerce sector where we can dovetail a number of our products GSA, Solutions and Handling to facilitate the market.” The UK is a mature market, but Ward sees the main opportunities coming from investments in areas such as IT, sales and customer service functions. Ward says: “The drive for efficiency and profitability in our partner airlines is creating this demand for people to reach out where maybe they have been content to continue as is up until now.”
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