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The weekly newspaper for air cargo professionals Volume: 21

Issue: 16

23 April 2018

AEI warns EC of falling safety standards

viation engineering lobby group Aircraft Engineers International (AEI) has written to the European Transport Commissioner Violeta Bulc, warning that some countries, such as Germany, are ignoring European safety regulations. They are allowing airlines to operate aircraft without carrying out the required safety checks. This practice has been acknowledged by the European Aviation Safety Agency (EASA) claims AEI, following its audits of various countries’ practices; its subsequent attempts to enforce the regulations have failed, leading to concerns that EASA is unable to enforce European Union (EU) safety regulations on member states. “It is very worrying that the EU’s aviation safety agency is proving to be nothing more than a paper tiger,” said AEI president Ola Blomqvist. “Without intervention of the European Commission, only an avoidable disaster will spur the authorities to comply.” EC regulations require that before aircraft can operate following maintenance, technically “be released to service”, the work done by unlicensed mechanics will be checked or “verified” in the language of the Regulation, by engineers specially licensed to perform this

vital safety role; engineers whose function it is to act as the bridge between the operator and the regulator. EASA made clear in its circular of December 2015, that verification “is not just an administrative task which can be performed from a remote location or without having been involved at all.” Some EU member states permit the operators they control to ignore this requirement and allow aircraft to be operated without any physical check by a licensed aircraft maintenance

engineer. The licensed engineer is only then permitted to make sure that the (unlicensed) mechanic(s) has signed a document saying that they have performed the work satisfactorily. This is, of course, cheaper and quicker for operators but means that the vital step in the process is not being carried out by the state-licensed aircraft engineer. Their role is reduced to checking that boxes have been ticked rather than ensuring that work has been correctly carried out.

With just over four weeks to go, tickets are selling fast for the Air Cargo Week World Air Cargo Awards 2018 to beheld in Shanghai, China. The presentation of the Awards will be held at a glittering Gala Dinner on the evening of Thursday 17 May 2018 at the highly acclaimed Five-Star Jumeirah Himalayas Hotel. Awards are presented in ten categories, ranging from Airfreight Forwarder of the Year to Cargo Airline of the Year and are voted upon by members of the air cargo community. The evening will commence with a Champagne reception, followed by a magnificent Chinese banquet with fine wines, live music and entertainment. This highly successful gala occasion is the largest and most authoritative celebration of excellence in the global air cargo industry in the world and provides a wonderful opportu-

nity to network and meet up with your industry colleagues. Make sure you do not miss out by reserving your seat online at www.worldaircargoawards.com/tables.cfm or contact Kim Smith

at kim.smith@azurainternational.com Pictured above, the winners at the 2017 awards ceremony held in Munich at Air Cargo Europe on 10 May 2017.

lufthansa cargo’s boardroom suffle

airfreight Goode enough to eat on the menu when routes stretch around the world

“Without intervention, only an avoidable disaster will spur the authorities to comply.”

Don’t miss out: World Air Cargo Awards tickets selling out fast

E-Commerce, disruptors and fish in stockholm

Saudia Cargo picks Omar Hariri as CEO Saudia Cargo has appointed Omar Hariri (pictured) as its new chief executive officer (CEO), bringing with him extensive management experience in the transportation, supply and logistics fields. The new CEO will lead the company and strengthen its position in accordance with the transformation strategy taking into account the development of all services provided, the promotion of performance and production, in addition to strengthening security and safety in all stations and facilities to meet international quality standards. Saudia Cargo is going through important stages of its transformation 2020 programme launched in early 2017 in line with the Saudi 2030 vision, aiming to upgrade various services and sectors. The airline’s freighter fleet consists of Boeing 777s,747-8s,747-400ERFsand747-400BCFs, and the bellyholds of passenger aircraft.

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Etihad Cargo helps save Houbara bustards

tihad Cargo and the International Fund for Houbara Conservation (IFHC) have transported more than 100 vulnerable Houbara bustards for release into their natural environment. The venture is part of the Sheikh Khalifa Houbara Reintroduction Programme, which began in 2014, and in 2017 alone more than 2,000 birds were transported safely to countries in Asia and North Africa, which have more hospitable environments. In the past three years, the partnership between the two organisations has led to the successful relocation and integration into the wild of more than 3,000 Houbara across the world. The Houbara are bred in centres in Abu Dhabi managed by IFHC and then released into their natural habitat in countries across the world. IFHC has developed protocols based on ecology on the breeding and release of the Houbara, and every release site is studied to ensure the birds have the optimal chance of survivial. Etihad Cargo vice president, Justin Carr says: “Our motto is ‘From Abu Dhabi to the world’ and it is literally the case with our partnership with IFHC. It is an honour to be able to safely transport the Houbara to countries where they can thrive, and play a small

part in Abu Dhabi’s project of restoring this iconic species in the wild.” Etihad Cargo has a strong record of safely transporting animals around the world – be it returning vulnerable or endangered species to their natural habitat or reuniting pets with their families.” IFHC director general, Mohammed Saleh Al Baidani says: “Etihad Cargo has proved itself in terms of destinations and security, and together we are helping restore the iconic Houbara to countries where it has been in historic decline.”

Volga-Dnepr’s Pandas settle into new home in Finland THE two giant pandas that Volga-Dnepr Airlines transported to Finland have settled into their new home at Ahtari Zoo. Lumi and Pyry were transported from China to Finland under a joint programme aiming to preserve and study giant pandas. Their arrival in Finland followed the signing of an agreement in 2017 by the Preservation and Research Center for Giant Pandas in Dujiangyan, which agreed to transfer the two pandas to Ahtari Zoo for a set time period. During the flight, the pandas were accompanied by one of their keepers and a vet from the Finnish zoo to ensure the safety and well being of the animals. One hour before landing, the crew gradually lowered the temperature in the cargo hold to 10oC to help the pandas acclimatise gradually for their arrival in snow covered Helsinki. Volga-Dnepr Airlines general director, Mikhail Smirnykh says: “This flight in support of such an important wildlife preservation programme was special for our company so we are delighted to hear that Lumi and Pyry have acclimatised so quickly to their new surroundings.”

ACW REWIND

DUTCH MOTOR manufacturer Spyker had acquired the Midland F1 team and competed for a season in the pinnacle of motorsport: FIA Formula One.

Abu Dhabi roars into Formula 1 Volume 10 Issue 12 26 March 2007 AHEAD OF Abu Dhabi hosting an F1 Grand Prix for thr first time in 2009, Etihad Airways has revealed it is to be a main sponsor in the forthcoming 2007 season for the Spyker Formula 1 Grand Prix racing team. Etihad president and CEO James Hogan commented: “Spyker is a small team determined to make a big mark in Formula 1 and all of us at Etihad are excited at the prospect of seeing Christian Albers and Adrian Sutil wear our livery and drive in the Etihad Aldar Spyker F1 team.” Etihad Airways and Aldar logos will have primary branding on the Spyker cars for the full F1 season this year, which began with the Australian Grand Prix on 18 March and on team clothing and the driver overalls for the rest of the season from the Malaysian Grand Prix at the beginning of April onwards.

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Hoensbroech to move to Austrian Airlines

ufthansa Cargo is making changes to its executive board with new roles for Alexis von Hoensbroech and Dorothea von Boxberg. Von Hoensbroech, who is chief commercial officer for Lufthansa Cargo is to become the chairman of the executive board and chief executive officer of Austrian Airlines and von Boxberg will be the executive board member for products and sales at Lufthansa Cargo following approval of the supervisory board. Von Boxberg is vice president of global sales management at Lufthansa Cargo, with responsibility for areas including global performance management, pricing, airmail, product management and sales processes. Her new role will include responsibility for the external organisation of sales and handling, revenue management, pricing, network planning and sales management. Lufthansa Cargo chairman of the supervisory board, Harry Hohmeister says: “I am pleased to propose to the Supervisory Board Dorothea von Boxberg as the successor to Alexis von Hoensbroech, who is currently serving as Chief Commercial Officer of Lufthansa Cargo. Her extensive management experience in strategy, product development and sales is an optimal

Air Incheon receives first 767-300 freighter from ATSG

Air Transport Services Group has delivered its first Boeing 767-300 converted freighter to Air Incheon under a six-year dry lease agreement. The South Korean airline, based at Seoul’s Incheon International Airport received the aircraft from ATSG’s subsidiary, ATSG West Leasing and has agreed to lease a second 767300 when the aircraft completes modification in the second half of 2018. Air Incheon operates two Boeing 737 Freighters from Incheon, and a third 737 is undergoing passenger-to-freighter conversion via a contract Pemco World Air Services, a division of ATSG’s Airborne Maintenance and Engineering Services subsidiary. ATSG chief commercial officer, Mike Berger says: “We are very pleased to deliver the first of two 767 freighters to Air Incheon. This is especially positive for us, as it represents the launch of a new customer relationship. We are looking forward to a very bright future with Air Incheon.”

Network gets approved

WCA’s Time Critical Network has achieved complete validation of all its network members, aligning members to be more competitive as specialist movers on the global stage. Members are now able to fully validate trade lanes and have the knowledge to help ensure that shipments are handled with maximum efficiency and within the required time frames. Complete validation was something the group wanted to achieve, according to WCA Time Critical general manager, Adam McKenna.

Quote of the week “It is very worrying that the EU’s aviation safety agency is proving to be nothing more than a paper tiger.” Aircraft Engineers International (AEI) president Ola Blomqvist

Johan Ignell has joined Scandinavian Shipping & Logistics as business development manager. Ignell, 33, was previously with the Greencarrier Group where he was sales manager in Shanghai as well as Key Account Manager and Trade Lane Manager. He graduated six and a half years ago from Chalmers University of Technology to join Greencarrier with a degree in shipping and logistics. Ignell says that Scandinavian Shipping & Logistics are seeking to grow extensively in Northern Europe over the next five years.

Alexis von Hoensbroech

Dorothea von Boxberg

prerequisite for this task.” Von Boxberg joined Lufthansa in 2007 and headed the strategy and investments division of Lufthansa Passage from 2009 before assuming several positions in product management. She was transferred to Lufthansa Cargo in 2015 and has headed the global sales management team since then.

IAG invests in Norwegian

International Airlines Group (IAG) has confirmed it has made a minority investment in Norwegian Air Shuttle but will not say if this is the start of a full takeover. The airline group has acquired 4.61 per cent ownership saying “the minority investment is intended to establish a position from which to initiate discussions with Norwegian, including the possibility of a full offer for Norwegian”. IAG adds that no such discussions have taken place, no decision to make an offer has been made and there is no certainty that a decision will be made. Commenting on the news, Norwegian says it had no prior knowledge of the deal before seeing media reports. It says: “Norwegian has not been in any discussions or dialogue with IAG about the matter. Norwegian believes that interest from one of the largest international aviation groups demonstrates the sustainability and potential of our business model and global growth.”

Aeromexico signs up to Traxon cargoHUB Aeromexico has signed up for CHAMP Cargosystems’ Traxon cargoHUB to provide digital communication between forwarders and other air cargo supply chain partners. The state-of-the-art Traxon cargoHUB platform features one of the largest air cargo communities with access to over 100 airlines, 3,000 forwarders operating from 9,000 branches worldwide. CHAMP says that by improving the data quality and completeness in the supply chain, Traxon cargoHub connects the entire global airfreight community, irrespective of their IT configuration or systems resulting in higher productivity and lower costs. Aeromexico has been a CHAMP customer for more than 20 years and also uses the compliance product, Traxon Global Customs to communicate Advance Electronic Filing Information to customs authorities around the world. Aeromexico IT manager, Oscar Mario Garcia Tirado says: “Communication is the key to the air cargo business. The more quickly and effectively it gets done – the happier our customers – and we are. Traxon cargoHUB is the next step to a fully digitised business.” CHAMP Cargosystems vice president of global sales & marketing, Nicholas Xenocostas adds: “Our huge forwarder community will welcome this development, which will help advance the digitisation efforts of air cargo in the Americas region.”

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WorldNews

Oman Air, the national carrier of the Sultanate of Oman, has appointed Paul Starrs as its chief commercial officer. Bringing with him many years of professional experience in the aviation industry, he will mainly focus on developing a comprehensive and sustainable plan to improve Oman Air’s commercial operations. Oman Air acting CEO, Abdulaziz Al Raisi, announced the appointment saying, “We are delighted to welcome Paul back to Oman Air to help further strengthen the company’s commercial operations as we continue our exciting expansion plans.” Commercial cargo sales will report to him. Tough new biofuel targets coming into force on Sunday April 15 2018 in the UK will double the use of renewable fuels in the transport sector, including aviation, within 15 years, cutting the sector’s reliance on imported diesel. Changes to the Renewable Transport Fuel Obligation (RTFO) will compel owners of transport fuel who supply at least 450,000 litres a year or more, to make sure the mix is at least 12.4 per cent biofuel by 2032. Currently the industry is only expected to meet a target of 4.75 per cent biofuel. RTFO changes will support the UK’s low carbon fuel industry while helping make sure the UK transport sector is one of the most sustainable in the world, say the government. Kerry Logistics has appointed Mathieu Renard Biron as managing director – global freight forwarding and Patrick Cheah as executive director – global air. Based in Hong Kong and Bangkok, Biron will be responsible for steering the strategic development of the Group’s freight forwarding division and overseeing its overall management, both on strategic and operational levels. Biron has over 25 years of international freight experience and last served as Geodis Group’s regional vice president for Asia Pacific. Cheah, who is based in Singapore with responsibilities for leading the Group’s airfreight business, joins from Damco and UTi where he was head of airfreight for Asia. Aeronautical Engineers (AEI) has signed a contract to provide Mexico-based Aeronaves with a fourth CRJ200 SF freighter conversion. Modification for the fourth aircraft will start in June 2018, with re-delivery scheduled for October 2018. Commercial Jet’s Dothan, Alabama facility will handle the modification touch labour for the conversion. Aeronaves says it plans on operating many more AEI CRJ 200 SF converted freighters. The AEI CRJ200 shall provide Aeronaves with an Ancra CLS capable of carrying eight 61.5”x88” containers in P1 to P8. A slump in exports has caused cargo volumes at Hong Kong International Airport (HKIA) to fall in March. Cargo volumes were down 2.5 per cent in March to 422,000 tonnes, with imports rising 5.6 per cent to 163,000 tonnes not being able to make up for exports falling 7.1 per cent to 259,000 tonnes. The most significant drops in exports among key trading regions were to South Korea and Europe. HKIA handled five million tonnes for the first time in 2017, with 4.94 million tonnes of cargo added to 112,000 tonnes of airmail pushing it past the barrier.

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DHL to help start up entrepreneurs

HL Global Forwarding is to assist start-up entrepreneurs in logistics and supply chain development with the launch of DHL Start-Up Helpdesk. The helpdesk will help young companies enter the international business market and provide advice on what requirements need to be met if products and goods are to be offered in other countries, including outside the European Union. It will help with Customs and shipping advice such as asking if the goods have been packaged properly, what transport mode is best, customs requirements for imports and exports, what shipping documents are required and whether the goods have been properly insured. DHL Global Forwarding vice president for customer service in Germany, Joachim Hermansky says: “Our customer base of start-ups with global operations is growing rapidly at our branch in

Berlin. Understandably, they have a greater need for advice and services, particularly in the initial stages. “That is precisely why we trained up a young team that acts as a link between companies going global and traditional handling departments. They understand both worlds and that allows them to provide swift and flexible support.”

Agility launches online platform Agility has launched Shipa Freight, an online forwarding platform, enabling businesses to quote, book, pay and track freight online. It is the first fully integrated online freight service allowing users to get rate quotes and book, pay and track ocean and air shipments around the world. Shipa Freight provides instant, no-obligation rate quotes from the countries that account for 95 per cent of global trade and allows users to manage their international shipments with a tool accessible by desktop, laptop, tablet and mobile app. Agility chief executive officer, Tarek Sultan says: “Shipa Freight is a simple, technology-driven answer for small and medium-size businesses trying to take the complexity out of their international shipping. It gives them the

transparency, flexibility, competitive pricing and customer service that the industry offers only to multi-nationals and high-volume customers.” Shipa Freight is backed by Agility’s global network of more than 22,000 experienced employees in 500 branches and over 100 countries, allowing small and medium size companies to access growing markets. The online platform can also help customers overcome issues such as compliance and customs requirements.

Favourable tail winds for Dachser Net revenue at Dachser increased by 9.9 per cent in 2017 with the Air & Sea Logistics division storming away with double digit growth. Group net revenue was up 9.9 per cent from €4.8 billion in 2016 to €5.3 billion in 2017, with growth in all areas, but Air & Sea was the only one increasing at double digit rates. Air & Sea Logistics revenue grew by 17.5 per cent to just under €1.2 billion, with Dachser saying increased business combined with a rise in airfreight rates helped the sector. Dachser chief executive officer, Bernhard Simon says: “Air and sea freight is a volatile business with revenue as ever swinging between extremes. We are, however, focused on ensuring sustainably profitable growth. So we are increasingly dovetailing our two business fields and are pushing forward with system integration.” The company says that despite favourable tail winds continuing through the first quarter of 2018, capacity bottlenecks and a short-

age of drivers could potentially limit future growth. Simon says: “For this reason, our commitment to training has top priority. We want to increase the number of trainee drivers every year and establish our quality concept also in other European countries.” In 2017, the first 22 professional truck drivers completed their training through Dachser Service und Ausbildungs in Germany, with another 106 starting their training at 35 German locations.

K+N moves to new Wakefield office

Kuehne + Nagel has moved its branch in Leeds to a state-of-the-art office space in the heart of Wakefield. The new location is two miles from Wakefield city centre and 15 miles south of Leeds, providing access to all of Yorkshire, being adjacent to J39 of the M1 motorway and close to the M62 motorway. Leeds branch manager, Donna Dallyn says: “When it came to relocating the branch we made sure to keep the two most important things in mind – our people and our customers. The new property meets the needs of

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both. “The building is modern and spacious, which not only supports the fantastic growth we have already had, but also gives us the opportunity for further growth in the near future.” Kuehne + Nagel says branch colleagues live in the surrounding area, which helps assist customers. It adds that the team look after a range of local customers ranging from small independent companies up to multinationals, helping with needs for road, sea and airfreight.

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PERISHABLES

Flying fish keeps the salmon run in the air

he Salmon Run, the flying of farmed fish from Scandinavia throughout the world, especially Asia, is the emerging mega route. Salmon now accounts for half of Nordic airfreight volumes, writes Michael Mackey. Since 2006, it has grown at almost 10 per cent annually, with 600 tonnes of salmon leaving Scandi airports daily. “We will see growth of 500 per cent in the next thirty years,” says salmon farmer Marine Harvest head of airfreight, Tom Erling Mikkelsen. Speaking at a conference in Bangkok, the audience fell silent – apart from a few jaws hitting the floor – as the significance of this emerging mega-route sank in. Asia took 193,908 tonnes of salmon in 2017, Mikkelsen’s presentation said, three times the US market of 68,000 tonnes but only a quarter of the EU’s 841,000 tonnes. The EU market contracted by two per cent whilst the US market grew 23 per cent. Where ever it is going the air cargo industry is grateful. Very. “Last year was an incredibly successful year for Norwegian seafood exports, which obviously impacted us very favourably. We carry roughly 100 tonnes of salmon per day. 2017 was also a record-breaking year for Finnair too and our revenue grew 13.5 per cent on 2016,” Finnair head of global sales Fredrik Wildtgrube told Air Cargo Week. The salmon trade though is not a simple drop and shift trade and has required some

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finesse. Finnair acknowledges it is focusing considerably on the cool supply-chain; that means sensors, data sharing, digital and new facilities. Finnair’s new flights to Asia are also good indicator as to its priorities as it reconfigures in the wake of the Salmon Run. This involves Nanjing, its seventh destination in greater China, starting three weekly services in mid-May, whilst Bangkok goes from daily to ten weekly flights. Osaka will go daily in the Winter 2018 schedule. There are other Fredrik Wildtgrube increased flights to other destinations but the action is in Asia. There can be no complacency about these routes as Marine Harvest’s Mikkelsen pointed out at the conference. He argued for a more collaborative approach along the supply chain to move it to the next level – a reference to entering the charter market. What is required though is more both in terms of volumes available and the support offered. “The present capacity is covering the market needs, however, would like to see more online capacity form Oslo Airport to shorten the lead time,” Mikkelsen told Air Cargo Week.

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PERISHABLES

E-Commerce disrupts MIAMI International Airport (MIA) manager, aviation trade and logistics marketing, Emir Pineda’s key disruptor is e-commerce. Other technologies now undergoing development, like autonomous trucks and drone deliveries are also significant. He also sees robotics/ automation handle more and more of the sorting, picking, transporting, of perishables products. But e-Commerce is where the immediate impact will be. He says: “E-Commerce is the biggest disruptor in the perishable supply chain and it will affect everything as we know it. “With the announcement of Amazon purchasing Whole Foods we are witnessing the fundamental change which will take place in the way the consumer shops for perishables in the future. There are a lot of logistical hurdles to work out yet but e-commerce will enable more products to reach more consumers faster than ever before,” says Pineda.

More ‘ready to consume’ food than raw products on menu

key factor behind the roaring perishables trade is the beginning of significant change in technology’s use in agriculture, according to Emirates senior vice president, cargo operations worldwide, Henrik Ambak. This has an impact on the nature of perishables being exported from various markets, says Ambak, citing the example of avocadoes. “Previously we used to have two main source markets – Kenya and Mexico. However, with changing technologies and factors there are now other countries that are beginning to export avocadoes,” he says. Hydroponics and vertical farming are disrupting the landscape of perishables production. With farmers now being able to efficiently produce fruit, vegetables and flowers indoors, even markets such as the UAE which were previously only importing produce are now beginning to

Perishables just keep on growing and growing

export vegetables, he says. “This means that we have to continuously study market developments to adjust capacity to meet customer supply and demand. There is also an increasing trend of shippers transporting more ‘ready to consume’ food rather than raw produce,” he adds. “Carriers like ourselves need to equip ourselves with the right infrastructure and processes to ensure that we are able to transport the food quickly without loss of freshness.” Indeed, the carrier has invested substantially in its specialised facilities for both perishables and pharma products. That ongoing investment saw the launch of Emirates Fresh, its specialised transportation solution for perishables in April last year which dovetails with its extensive cool chain facilities at two Dubai cargo terminals.

Is CEIV the answer?

THE idea of an IATA CEIV-type (Center of Excellence for Independent Validators) standard for perishables has been tossed around in recent months, but is this the answer? “If you compare what the pharmaceutical industry needs in terms of quality and procedures, it is very similar (almost identical) to what the perishable industry needs,” says Jan de Rijk Logistics chief executive Sebastian Scholte. “But we have to be careful that CEIV really becomes a modus operandi rather than a paper PR exercise,” he cautions. There is no escaping the simple fact that perishables, being a very broad vertical with many kinds of products, will likely make it a challenge to create a good standard.

or many consumers around the world, the geographic seasonality of their fruit, vegetables and flowers has become a quaint, if not forgotten, notion. So too the origins of this produce and seafood they consume. What is clear is that these consumers expect a wide variety of produce, all year-round, writes Donald Urquhart. The growing middle classes of developing countries are a key driver behind at least part of the growth of perishables. China in fact has already demonstrated its voracious and rapidly growing appetite for imported food stuffs of all kinds, motivated by a number of factors, chiefly by a rising population, growing affluence and domestic food safety issues. American Airlines managing director, cargo sales – Western division, Joe Goode, American adds that perishables into mainland China tend to be commodity focused. “If a cherry is the right size and quality in a particular season, we see growth. Overall, we see demand on the rise, be it berries, cherries or seafood. There are fluctuations based on availability and other external factors out of our control,” he says. The global growth of perishables is the result of economic factors and demographics Globalisation has changed demands for perishables: we all now want mangos, papayas and other exotic food all year round. Without airfreight this would not be possible. Likewise, as Miami International Airport (MIA) manager, aviation trade and logistics marketing, Emir Pineda, says: “We believe consumers are consistently looking for higher quality perishables and new types of prodJoe Goode ucts. In essence, commodities not currently available in their local grocery store, but for which there is demand. “Seasonality also comes into play, where opposite growing seasons in the northern and southern hemispheres are producing fruits and vegetables at separate times, yet demand for the product is year-round.” MIA is a nothing short of a behemoth when you are talking perishables – currently MIA handles an astonishing 63 per cent of all perishables entering the US by air, amounting to 855,568 tonnes in 2017. Breaking down the total volume into the three major categories: Flowers, fruit and vegetables and seafood it becomes obvious MIA dominates the flower market with 89 per cent of all flowers imported to the US coming through MIA, 65 per cent of all fruit and vegetables and 47 per cent of all seafood.

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WORLD ROUTES

Air cargo keeps on flying around the world

irst, the good news: there are no hotspots anyone is missing but some routes are doing better than others, writes Michael Mackey. The explanation for this is simple: the industry has seen a surge in demand that is broadly-based, both geographically and in terms of sectors. That written, some routes and some parts of the industry deserve special mention. “Asian exports to both North America and Europe Lim Ching Kiat were particularly

strong. China continued to drive export growth, at the same time the domestic economy is also modernising its retailing and logistics industries, which has led to accelerating demand for express air cargo services,” says Association of Asia Pacific Airlines director general, Andrew Herdman. There is a lot of corroboration for this in the industry. “Nine out of Changi’s top 10 countries showed positive growth, with notably strong growth in China,” Singapore’s Changi Airport Group managing director, air hub development Lim Ching Kiat tells Air Cargo Week. China grew 15 per cent and is Changi’s top cargo market, Lim says whilst Hong Kong, a part of China, its third largest market, but grew by only two per cent. Changi established ten new city links in 2017 of which three were to China (Harbin, Shiji-

azhuang, Yantai), with the others being Athens, Madurai in India, Hiroshima, Okinawa, Bintulu in Malaysia, Stockholm and Honolulu. All of them are potential cargo routes. This year, Changi expects to see more developments in long-haul segments to Europe with Scoot’s non-stop service to Berlin and LOT Polish Airlines’ new service connecting Singapore and Warsaw. China will not be neglected. “At the same time, we will continue our efforts to strengthen our connectivity to secondary cities in China and India – our fastest growing markets in 2017,” Lim says. Nor will the intra-Asian trades or indeed the established long haul routes be forgotten. “European exports to both Asia and North America were also very strong, leading to more balanced route demand, particularly on the major Asia-Europe trade lanes,” AAPA’s Herdman says. Again there is corroboration for this in the market. “From a regional perspective, Europe ranked top for Hactl, followed by the USA in 2017. We expect the European trend will prevail as it is widely reported that manufacturing firms in the Eurozone are seeing export orders growing at the fastest pace on record. In addition, we have recruited new airline customers which are adding considerable tonnage on Europe routes,” Hactl executive director, Vivien Lau says. This also extends to the North American mar-

ket, whose transpacific routes at one time were the key factor but are now one of several in the overall health of the industry One of the twists of this, and here names and atlases should be paid attention to, is Taiwan-based China Airlines opened Taoyaun to Ontario, not the Canadian province but the Southern Californian city, with seven flights weekly – the first direct Asia to Ontario (US) route. True, it is a passenger led service but it as handy tool with which to tap the Southern California tech market and, when the season is ripe, the cherry market. The carrier is also starting charter freighter flights to Rickenbacker International airport at Columbus, Ohio on an ad hoc basis, the airline tells Air Cargo Week. There is though a cloud on the horizon for the transpac routes: US trade rules. “The only potential damping factor is how the announcement of new US tariff policy may affect international trade, casting some uncertainty over air cargo flows worldwide,” Hactl’s Lau tells Air Cargo Week. Where China Airlines is looking more is intraAsian. Its view is the continued development of Southeast Asian economies means growth is expected in time-critical cargo markets such as consumer electronics, functional textiles, and trans-border e-Commerce. “China Airlines will continue to cultivate regions such as Japan, Singapore, Malaysia, India, Vietnam, the Philippines and Thailand to compete for north-west cargo sources within Asia. The destination/route combinations of freighter services will be optimised to boost overall revenues,” it tells Air Cargo Week. In one part of this there is agreement from AAPA’s Herdman who underlines the importance of Vietnam: “Particularly noteworthy recently has been the rapid growth of the air cargo market in Vietnam as the economy develops its manufacturing and logistics capability. As of now, we have 85 confirmed freighter locations in our summer ‘18 schedule. We expect it to reach 91 with the addition of potential routes.”

Turkish delight in route expansion One of the more adventurous, it could even be said exotic, route expansion programmes comes from the Istanbul-headquartered Turkish Airlines. “We will be flying to Brussels, Belgium with an A310F, to Vilnius, Lithuania and Muscat, Oman with A330Fs and to Mexico City one of our newest B777Fs,” Turkish told Air Cargo Week. “We are currently working on routes to

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Addis Ababa, in Ethiopia, Abu Dhabi, Karaganda in Kazakhstan, Mısrata, Libya, Tokyo in Japan and Navoi in Uzbekistan depending on the flexibility of our current schedule and airport slot permissions,” Turkish added. This will bring to 85 the carrier’s confirmed freighter locations in its summer 2018 schedule and they are also routes that keep Turkish Airlines and the industry growing.

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WORLD ROUTES

Air Logistics Group finds growth all over the globe

ir Logistics Group had an exceptional year in 2017 and chief operating officer, Stephen Dawkins says things are unlikely to slowdown any time soon. The general sales and service agent (GSSA) has a network of 88 offices in 48 countries, stretching across six continents, giving the company an impressive reach. Dawkins says that all regions of the world are performing well and e-commerce is having a major impact on the industry. He says: “All regions are seeing a year on year improvement, however there has been key growth from Europe to Asia in the last six months, and of course growth in South East Asia which remains very robust for Air Logistics Group.” The group’s extensive reach means Dawkins is not concerned about global events including Brexit and the threat of trade wars on business. He comments: “The airline industry is a global industry so whilst there has always been crises around the world such as the current events of Brexit or trade wars; so that brings new opportunities in other parts of the globe for our airline partners. “The difference with Air Logistics is that its worldwide reach allows it to compensate in other countries when one country may be in crisis.” To remain ahead of the competition, Air Logistics Group is making significant investments in its IT platforms to provide what Dawkins

describes as a “one stop shop” for airlines and freight forwarders in bookings and reservations and capacity management. Dawkins says: “We have invested over $8 million in IT development over the last 10 years to interface and interact swiftly with our airline principles. We are able to offer a variable cost and added-value to airlines by being very quick to the market for start-ups. “We have a rich vein of commercial information and a comprehensive network of 88 offices in 48 countries to provide airlines with this information swiftly.” The role of the GSSA is changing, they are required to do more than sell, with Dawkins explaining: “Airlines know exactly where their business is, what they demand is an organisation that can knock on the door of companies where that business is. Air Logistics Group has built a global network over the last 24 years and we are really reaping the benefits of bringing cargo to our airline clients from every corner of the world.” He adds that GSSAs have become the outsourcing companies of choice for airlines, offering additional services including trucking management, data capture, accounting and administration, and IT development. Dawkins says: “Air Logistics Group is ideally placed to offer all of these services including the ultimate ‘Total Cargo Management’ solution where an airline looks to maximise its revenue and focus on its core passenger business.”

Stephen Dawkins

Azul to lease 737-400 Freighters

Azul will lease two used Boeing 737-400 Freighters to support the rapid growth of its cargo business unit, Azul Cargo Express. The aircraft are expected to be delivered during the second half of the year and will have a capacity of up to 20 tonnes. With more capacity and higher flexibility, Azul Cargo Express expects revenue to grow 40 per cent this year, following on from 49 per cent growth in 2017. Azul Cargo Express director, Izabel Reis says: “We have decided to order these freighter planes because we see the need

to have some dedicated narrowbody aircraft to support the growth of our cargo business. “The 737 is the only narrowbody freighter option in the market and was chosen because of the model’s low ownership cost combined with its superior capacity and unbeatable reliability track record. “With these planes, we’ll have greater versatility based on the needs of our clients, and we will also be able to offer new services, such as air charter. With no doubt, these cargo planes will support our fast expansion.”

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SCANDINAVIA Regional players focus on quality as volumes grow

verything from medicines and salmon to sophisticated aircraft parts for US fighter jets move in and out of Scandinavia by air, writes Stuart Flitton. While there is much land and sea traffic with the biggest trading partners such as the Netherlands, Germany, Poland and France, the huge markets in the US and the growing demands of Asia, especially China, require the swift transport that only airfreight can provide. The giant of air cargo handling in Scandinavia is Spirit Air Cargo Handling, which is owned by Scandinavian Airlines and has been in business for more than 55 years under different names. The brand, Spirit Air Cargo Handling, was first implemented in Sweden 2004 and two years later in Norway and Denmark. It operates in Stockholm, Gothenburg, Malmo, Oslo, Copenhagen, Billund and Aalborg with services that includes bonded warehousing, ramp

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handling, documentation and customs clearance, and ULD control and management. Kjetil Håbjørg, vice president ground handling says: “We always focus on new trends and demands from our customers. Safety and security are the key elements in our cargo handling and quality in our handling is another important element.” He adds: “Even though we see an even higher demand for quality, we also find that price is still the major factor for airlines and forwarding agents.” Spirit has received Centre of Excellence of Independent Validators (CEIV) pharma certificates for Copenhagen, Oslo and Stockholm Arlanda. To get these, the company has made major investments in storage capacity. New procedures have been implemented and all staff have received training in how to handle time and temperature-sensitive shipments.

Oslo Airport, picture credit Avinor Oslo Airport One of the signs of growth in the region is that, alongside the main players in the industry, such as Spirit and DHL, smaller, independent logistics companies have started up over the past 20 years and are thriving, such as Scandinavian Shipping & Logistics, which began in 1999, Greencarrier Freight Services, which was launched in 2000 and NTEX, which was founded in 2003 in Gothenburg. A spokesman for Scandinavian Shipping & Logistics says that customer requirements have changed a great deal in the recent past. “Earlier, they could accept two departures per week while daily departures are required today. The supplier list - airlines - has increased quite a lot giving the freight forwarders more options to find solutions for their customers. “Today the pricing is under more pressure than before and it goes hand in hand with the increased number of services available in the market,” the spokesman says. The regional giant Sweden, with double the populations of its two neighbours, is highly dependent on exports, which make up about 50 per cent of the country’s GDP, compared with a global average of just over 25 per cent. Sweden’s global trade is very diverse, whereas elsewhere seafood and pharma dominate. While the capital’s airport is supreme, with the headquarters of most of the country’s export companies and shipping agents, Gothenburg Landvetter is close to the biggest harbour in Scandinavia and Malmo is near Copenhagen in Denmark and provides some benefits in cost and flexibility as a small airport. The north is best served by Lulea Airport on the northern end of the Gulf of Bothnia. It is growing as a means of exporting salmon from northern Norway. Despite being dwarfed by its northern neighbour, Denmark has the biggest hub in northern Europe in Copenhagen airport, which has the benefit of not being subject to curfews. Copenhagen’s new cargo centre is expected to be completed by the end of next year. The $50 million development by German company AXXUS will cover 20,000m² and is being built on

empty land in the existing cargo area. The new facility, which will have direct access to airside, will include the latest technology and will have refrigeration for food and pharma products. The growth in belly cargo is one of the spurs for the Copenhagen project, “Especially on the long-haul intercontinental air routes, belly cargo is a particularly important part of the business,” says Peter Krogsgaard, the Copenhagen Airport chief commercial officer. “This cargo can make up more than 10 per cent of revenue on a route. Today, belly cargo accounts for 40 per cent of the total tonnage at CPH and is up seven per cent this year. We’re actively working to attract even more long-haul routes, so it’s an important part of our strategy to create a good platform for air cargo at CPH.” In Norway, Oslo is dominant, especially for international airfreight, and consequently the number of all-cargo aircraft operating at the airport has grown. The second biggest handler of exports and imports is Stavanger, although with a fraction of the volumes at Oslo. Bergen airport deals with domestic cargo almost exclusively, although such is the dominance of Oslo that this amounts to less than half the amount that going through the capital’s airport. The huge amount of air cargo being handled at Oslo is continuing to grow, with 185,000 tonnes last year translating to an increase of 35 per cent over 2016, as reported in Air Cargo Week in February. Much of this growth is in seafood, with Espen Andersen, of Leroys Seafood, saying that more direct flights from Oslo “is providing us with better access to our most important markets”. Revenues in Norway are now steadily growing after a volatile decade. In 2008 Norwegian airfreight generated $92.5 million. This grew to a peak of more than $100 million in 2011 before plummeting to just over $67.5 million the following year. While not yet back up to the highs of the early mid to late Noughties, revenues are on the up again after a drop between 2014 and 2015 and are predicted to approach $85 million in 2020.

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TRADEFINDER Airlines

Cargo Handling

GSSAs

Turkey

United Kingdom

United Arab Emirates

Online Services

Charters United Kingdom

Freight Forwarders

Hong Kong

India

Freight Forwarders Iran

United Arab Emirates

Freight Forwarders

United Kingdom

USA

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Looking at what people in the air cargo industry are thinking about

E-commerce, digitisation, disruptors .... and fish

he 11th Nordic Cargo Symposium was held last week in Stockholm as some 180 airfreight managers, forwarders, shippers and professionals gathered in a city centre hotel in the Swedish capital. While the majority were Scandinavian, participants also came from Germany, UK, Latvia, UAE, Luxembourg, Lithuania, Belgium, Netherlands, Austria and Turkey. The one-day event was preceded by a cock-

tail reception, where host Lars-Gunnar Comen (pictured), director of organiser Eurovaia, welcomed the participants, including media sponsor Air Cargo Week. There were four main themes to the speakers’ presentations. The prospect and opportunities for air cargo arising from e-Commerce activity, the dangers to the established industry from potential and actual ‘disruptors’ and the extraordinary importance of fresh salmon traffic to Scandinavia, particularly Norway. The chairman of the event, whose theme was ‘Where Cargo is King’, was Finnair global head of sales Finnair Cargo, Fredrik Wildtgrube. He was a popular choice and had performed the same role at the last symposium. After the welcome, seven sessions kept the audience’s attention through the day. At the concluding remarks, Comen announced that the 2019 event will return to Oslo on March 29, 2019 at the Radisson Blu Plaza hotel.

The rise of the ‘Blue Dot’ consumer Consumer expectations of what logistics will deliver are changing. The Blue Dot consumer, so-called because of the position-tracker in Google Maps, will not wait in all day for a deliver at home but rather seeks to have the item delivered to them, wherever they are. That was the message of parcels delivery firm Jetpak chief commercial officer Stein Eidsvag. “We are having to build logistics operations around the consumer and what they want.” In terms of airfreight, this consumer will demand items from around the globe de-

livered at their convenience, not when it suits the supply chain. One major shift is that only some 20 per cent of e-Commerce purchases are now delivered to domestic addresses. The so-called ‘Last Mile’ will in 80 per cent of cases end in a workplace or dedicated drop-off point.

Quote of the symposium

“Norway is the biggest importer of fresh air” Avinor’s Martin Langaas makes light of the extreme Norwegian trade balance in favour of exports

Top spot for Turkish Cargo Istanbul-based Turkish Airlines Cargo cannot be said to lack ambition. The symposium was told by chief cargo officer Turhan Ozen (pictured) that the carrier, founded in 1933, would be one of the top five global cargo carriers in 2023. In order to achieve this, the carrier would aim to achieve an astonishingly 20 per cent a year from 2018. “We saw 1.1 million tonnes last year,” says Ozen, who has been in role for only 18 months after joining from the forwarding sector. “We were in the top ten in 2017. We want to be in the top five by 2023.” He informed attendees that one change he had made since taking post was a willingness to be contacted directly by shippers

and forwarders to allow him to deal with complaints. “My staff were not happy with this,” he said. He then used an anecdote of poor room service in the hotel venue to describe how important customer services must always be, even in airfreight.

Saudia to answer plea for capacity Saudia Cargo regional director Europe Rainer Muller (pictured) brought some welcome news to the symposium when he revealed an uptick in capacity from Oslo for Norwegian fish exports. “After the symposium, I am going to Oslo to discuss with the airport the possibility of running a B474 freighter to New York City to create more capacity for seafood exports.” He was talking after figures had shown that half of Nordic airfreight is Norwegian seafood. This translates into 600 tones exported daily, mostly by air. The Saudia move will depend on the air-

line being able to attract sufficient inbound cargo to Oslo, which given the extraordinary balance of trade surplus of exports over imports, may provide issues for the carrier.

Oslo looks forward to new seafood centre It would take 16,000 B777 bellyholds a year to carry out the annual total seafood volume that passes through Oslo airport. That was the claim of airport operator Avinor director cargo Martin Langaas (pictured). “Oslo airport is the freighter airport of Northern Europe,” he said. He introduced the airport’s planned 16,000 sq m seafood centre, saying construction was likely to start in 2019. The selection of an operator was being undertaken. There is such an imbalance of exports over imports to Norway because of the

salmon volumes that most freighters arrive empty, to leave Tuesdays and Wednesdays. He said that made Norway “the biggest importer of fresh air in the world,” to much amusement in the audience.

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