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The weekly newspaper for air cargo professionals No. 1,016

28 January 2019

Sci-fi that is air cargo’s new normal

DHL brings home the bacon

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INSIDE VIENNA SHARES DATA

THE cargo community at Vienna International Airport is embracing Nallian’s open data sharing platform to help reduce congestion and improve efficiency ... PAGE 2

UK FLYING TOWARDS NO-DEAL

HL Express will make its largest ever investment in Denmark by spending one billion krone on a new hub at Copenhagen Airport. The facility will feature state-ofthe-art automated systems and be able to handle 37,000 packages per hour, 24 hours a day in a 26,172 sq m building, which will be ready in 2023. Packages to and from Denmark usually travel via hubs in Germany or the UK but once the Copenhagen hub is open Denmark will be reached directly.

John Pearson, global CEO of DHL Express says: “Our international hubs are the backbone of our global network.” Atli Einarsson, managing director of DHL Express Denmark says the company is experiencing enormous cross-border online trade, and is also preparing for growth in pharma and fashion. .He says: “This massive upgrade of our facility will turn it into one of the most modern of our 19 regional hubs worldwide. This demonstrates the importance of our country’s future role in

the network. The new regional hub will benefit businesses and consumers in Denmark and throughout the Nordic region.” Thomas Woldbye, CEO of Copenhagen Airport Group says airfreight is vital to maintain and develop the airport as a key Northern European hub. He says: “We are very grateful that DHL has chosen Copenhagen for their new hub. It also meets the needs of consumers, who do more and more of their shopping online.”

Airbus: Don’t expect us to stay after Brexit PAN-European aircraft manufacturer Airbus could move wing-building out of the UK in the event of a No-Deal Brexit. The outgoing chief executive Tom Enders has been telling the media that the firm may have to make “very harmful” choices after British departure from the European Union (EU) in March without a deal. Airbus employs 14,000 people in the UK, with jobs at risk in Wales and South-West England at the company’s main wing factory at Broughton, Wales and 3,000 at Filton near Bristol where the wings are designed and supported. Enders says: “Please don’t listen to the Brexiteers’ madness which asserts that, because we have huge plants

here, we will not move and we will always be here. They are wrong.” He told BBC News that the group could not “pick up and move our large UK factories to other parts of the world immediately”, Airbus could be “forced to redirect future investments in the event of a No-Deal Brexit”. “And make no mistake, there are plenty of countries out there who would love to build the wings for Airbus aircraft,” he added. “Brexit is threatening to destroy a century of development based on education, research and human capital.” The UK remains due to leave the EU on 29 March this year.

THE UK and the EU are yet to reach an agreement on its trading relationship post-Brexit, and this uncertainty is causing great frustration to the ... PAGE 4 CAL AIDS LUNAR MISSION

CAL Cargo Airlines has transported the first Israeli spacecraft, the SpaceIL from Tel Aviv to Orlando on a Boeing 747-400ERF .... PAGE 5

x Enders: Don’t assume Airbus will stay after No-Deal Brexit

FIRST PERSON SINGULAR

ONE of the critical rules in business is to put the customer first - otherwise, your competition will. In other words, failing to service and satisfy customers .... PAGE 10

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Vienna embraces Nallian’s data platform

he cargo community at Vienna International Airport is embracing Nallian’s open data sharing platform to help reduce congestion and improve efficiency. Vienna is developing an Airport City with the opening of the Pharma Handling Center and more projects underway, but says land availability is not endless so digital transformation and collaboration are the way to support future growth. The Statistics app will allow the airport to better analyse and gain insights into cargo streams, and in future, more applications such as the Slot Booking app will be added to the Vienna CargoCloud. In the first phase, the Vehicle Database application will be used to control access to the cargo grounds to reduce congestion and improve security. The Vehicle Database will be integrated with the Automated Number Plate Recognition system, allowing companies at the cargo zone to register vehicles that are to be granted access to the area. Nallian says the system will avoid vehicles idling on the grounds, improve security and provide better insights in the movement at the cargo area. In the future, the application will be integrated with the Slot Booking application, so access can be granted automatically in view of registered time slots.

Peter De Leeuw, head of landside and real estate development and cargo development at Vienna International Airport says: “It integrates seamlessly with our existing systems and allows us to easily add more applications as we move forward – and even to build our own apps upon the platform.” Jean Verheyen, CEO of Nallian says the company is “thrilled” to support Vienna Airport’s digital transformation, saying: “Our Nallian for Air Cargo suite is designed by and for such visionary air cargo professionals, with the objective of optimising real-world situations leveraging existing data and processes.”

B&H opens second Control Tower Unitop adds Luxembourg flights B&H Worldwide has established a second Control Tower at its climate-controlled facility in Singapore, at Changi Airport. The Control Tower leverages Singapore’s position as one of the fastest growing aerospace markets in the world, with connectivity across the Far East and Oceania. It is located within the ALPS Free Trade Zone, providing an integrated information hub to enable team members to proactively monitor

customer shipments 24/7/365 at the same time as providing updates and full visibility. The second Control Tower will utilise the newly designed, next generation FirstTrac computer system to manage shipments. Stuart Allen, CEO of B&H Worldwide says: “This new initiative is an exciting start to 2019 and will give customers operating across multiple time-zones even greater confidence in our services.

UNITOP Airlines has opened its second cargo route to Europe with Boeing 747-400 Freighter flights between Wuhan and Luxembourg starting on 13 January. The first flight from Wuhan Tianhe International Airport touched down at 02.46h, with Zhang Younan, chairman and president of Unitop Group, Chen Ying, executive vice president of Unitop Airlines and relevant leaders of Hubei Airport Group attending the inaugural ceremony. The flights to Luxembourg will operate on Tuesdays, Thursdays and Sundays, complementing existing services to Liege, Belgium on Mondays, Wednesdays and Fridays. The cargo will mainly consist of notebook computers, mobile phones, precision instruments, mechanical equipment and other high value goods from Wuhan, Shanghai, Shenzhen, Xiamen and other places. The airline operates flights to the Indian

cities of Delhi, Mumbai, Chennai and Bangalore; Dhaka in Bangladesh; Hanoi in Vietnam; Kathmandu in Nepal; Dubai in the United Arab Emirates as well as the Liege and Luxembourg services. Unitop says the Wuhan-Luxembourg route not only meets the airline’s development needs but also the needs of Wuhan’s industrial development, by not only enhancing capacity between central China and Europe but serving the local economy.

Hold the Front Page! This week, we look back at the A380’s arrival and the hope it held for a mega-freighter Vol 8: Issue 3 24 January 2005

ACW 28 JANUARY 2019

he A380’s arrival as the world’s first full-length twin-deck aircraft on the aviation stage took place on 18 January 2005 at a ceremony in Toulouse, France. In attendence were Jacques Chirac, the French president; Gerhard Schroder, the German chancellor; Spanish prime minister Jose Luis Rodriguez Zapatero; and British prime minister Tony Blair. All have now left public office and the world stage. Some 4,500 guests attended the event, including the CEOs of 14 airlines which had placed orders for the passenger version of the aircraft. Much was made by the French president of the fact that the aircraft was a symbol of European Industrial co-operation: “To our partners, I say we must go further down this European path that is so vital for growth, prosperity and well-being.” The long-range A380 Freighter version, planned to carry up to 152 tonnes of cargo on standard pallets over distances of up to 10,400 km, was expected to begin operations three

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years later for UPS, FedEx and Emirates. Alas, for cargo managers, the plans for the freighter version did not fly. Delays in the A380 progranme put back the freighter’s delivery to 2012. However, in November 2006, FedEx announced the cancellation of its order, citing delays in delivery dates as the cause, and leasing company LFC changed its order to the passenger version. The rest, as they say, is history. Meanwhile, the lead story in this issue was about HKIA enjoying its best-ever cargo handling figures. In 2004, it handled 3.1 million tonnes, an increase of 17.4% over 2003. In contrast, in 2017 HKIA broke the five million tonne barrier, the first airport in the world to do so. In 2018, HKIA continued to fly high with 1.5% growth to 5.1 million tonnes.

Virgin and Delta to move to dnata City East

irgin Atlantic Cargo and Delta Cargo will double their cargo footprint at Heathrow Airport when they move into the purpose built dnata City East later this year. The move – scheduled for the second half of 2019 – will increase the size of Virgin and Delta’s cargo operation at Heathrow to 3,100 sq m and customers will benefit from greater automation and faster truck and cargo handling times. The facility will deliver the highest levels of service, security and automation, with customer trucks benefitting from a door management system, allowing drivers to complete paperwork at the gatehouse on arrival without leaving their vehicles and then be assigned to a cargo door. Inside, investments in technology will enable staff using handheld devices to manage the flow of cargo, while the double-train ETV system will increase storage to 245 positions for pallets and containers. The location will provide further benefits for customers moving temperature-controlled healthcare and life science products as well as offering a dedicated perishables zone an enlarged AVI centre for live animals. Tania Boyes, director – cargo operations at Virgin Atlantic says moving into dnata City East will be a “game changer”. She says: “It will not only double our capacity at Heathrow and provide space to grow, it reinforces our commitment to be easier to do business with, to use new technologies and automation to simplify and improve our customer experience, and to leverage our partnerships.”

WFS earns CEIV in Schiphol

WORLDWIDE Flight Services (WFS) has gained IATA CEIV Pharma certification for its pharmaceutical handling facilities at Amsterdam Airport Schiphol. At Schiphol, WFS provides dedicated temperature-controlled facilities for pharma products requiring both 2-8C and 15-25C environments. In preparation for its CEIV audit, WFS carried out a risk analysis and updated its quality management system and operating procedures to ensure full compliance with IATA requirements. All employees received specific training on the procedures and pharma handling processes, while the team leading the CEIV programme for WFS also completed IATA’s CEIV Pharma course. Stephane Scholving, managing director for WFS Amsterdam says: “Completing the audit process has enhanced our ability to provide safe and secure handling of temperature controlled pharmaceutical shipments and will allow us to develop closer partnerships with our airline customers in support of their own shipper and forwarder clients, which trust them to protect the quality of their pharmaceutical shipments throughout the transportation process.” WFS handles more than 220,000 tonnes of cargo a year at Schiphol on behalf of 70 airline customers, a figure that will increase when its contract with Lufthansa Cargo commences on 1 February.

FEDEX Trade Networks has been rebranded FedEx Logistics, which the company says describes its ability to meet customers’ increasingly complex and industry-specific supply chain, transportation, value-added services and brokerage need. FedEx Logistics will continue to operate from its global headquarters in Memphis, Tennessee. Services include air and ocean cargo networks, trade brokerage and facilitation, customs critical services, supply chain services, cross border e-commerce and fulfilment, and forward depots and 3D printing.

Rafael Figueroa, managing director – operations and customer experience at Delta Cargo says: “This state-of-the art facility will put the customer at the forefront with improved facilities and innovative technology solutions, as well as positioning Delta Cargo and Virgin Atlantic Cargo for future growth in this key market.” Gary Morgan, CEO of dnata UK says: “As a key partner, we are excited to be supporting the growth of both airlines by not only investing in this brand new facility but by also embracing their commitment to using new technologies to achieve service efficiencies and benefits for their customers.”

CargoLogic 737 lands in Leipzig CARGOLOGIC Germany has taken delivery of its first Boeing 737 Freighter, landing at Leipzig/Halle Airport on 17 January at 2pm. The first aircraft was welcomed by CargoLogic Germany’s managing director, Ulrich Ogiermann and Dierk Nather, accountable manager for the airline. The German cargo airline plans to start flying from Leipzig/ Halle with three Boeing 737s during 2019, primarily carrying express consignments once it has obtained relevant permits from the Federal Aviation Office. Ogiermann says: “The arrival of the first plane at its future home base is an important milestone along our journey of launching flight operations here at Leipzig/Halle Airport during the spring this year. “All the measures required for this from both organisational and operational points of view are proceeding at full speed. We’re therefore involved in a constructive dialogue with the Federal Aviation Office in this regard.”

Classic BOAC livery makes a comeback TO celebrate its 100th birthday, British Airways will paint a Boeing 747 in a classic design, using a British Overseas Airways Corporation (BOAC) livery. The aircraft, G-BYGC will leave the paint shop in Dublin and arrive at Heathrow Airport on 18 February using the 1964-1974 BOAC livery. It will enter service the following day, coinciding with the 50th anniversary of the first Boeing 747 flight a few days earlier. The 747 will be the first aircraft to receive a historic paintjob, with further designs being revealed in due course. Aircraft receiving retro liveries will fly British Airways’ routes, showcasing designs from the past. Alex Cruz, chairman and CEO of British Airways says: “So many British Airways customers and colleagues have fond memories of our previous liveries, regularly sharing their photos from across the globe, so it’s incredibly exciting to be re-introducing this classic BOAC design.” He adds: “Our history has shaped who we are today, so our centenary is the perfect moment to revisit our heritage and the UK’s aviation landscape through this iconic livery.” The 747 received the BOAC livery as it is a later variant of the same aircraft that initially flew with the design. The BOAC livery will remain on the 747 until it retires in 2023.

ACWBITES

SPECTRE Cargo Solutions, through its Irish affiliate NGF Genesis, has closed its first round of a long-term senior debt facility led by Erste Bank to refinance seven Boeing 737-700 and -800 converted freighters. The aircraft are on lease to multiple operators and managed by NGF. This will be the first institutional financing of Spectre’s freighter portfolio and represents the first tranche of aircraft supporting its passenger-to-freighter platform. QATAR Airways Cargo operated its first cargo flight to Almaty International Airport in Kazakhstan on 17 January using a Boeing 777-200 Freighter. The airport operator says flights between Doha and Almaty is another step in the development of the regional aviation hub and the expansion of economic cooperation between Qatar and Kazakhstan. Qatar Airways will deliver cargo to Doha, formed and consolidated in Almaty from the regions and neighbouring countries, and the flights will initially operate twice a week. AN Etihad Airways flight from Abu Dhabi to Amsterdam was the first flight powered by fuel from plants grown in seawater by Khalifa University. The fuel came from oil in Salicornia plants, which were grown on the two-hectare Seawater Energy and Agriculture Systems farm in Masdar City. The SEAS is the world’s first desert ecosystem designed to produce fuel and food in saltwater. Fish and shrimp raised at the facility provide nutrients for the plants as well as contribute to the UAE’s food production. HAINAN Airlines is continuing to expand its network with flights from Shenzhen to Vancouver and Dublin. The twice-weekly flights to Vancouver were launched on 28 January, marking the first route connecting the two cities. The Boeing 787-9 services operates on Mondays and Fridays. Twice-weekly flights to Dublin will be launched on 25 February, also operating on Mondays and Fridays using a 787. CARGOLUX Airlines International flight CV7303 had to return to Kuala Lumpur shortly after take-off after the crew reported the presence of fire and smoke in the cockpit. Flight CV7303 was en-route to Zhengzhou, China using aircraft LX-VCJ when the crew made the decision to return to Kuala Lumpur where it landed safely. Cargolux says the rescue services were alerted and the runway was temporarily closed before reopening once the aircraft was returned to the ramp. The crew were unharmed, authorities have been informed and Cargolux says it is fully cooperating in the investigation to determine the cause of the incident. VUSI Pikoli will join South African Airways’ (SAA) leadership team as chief risk and compliance officer on 1 February. The advocate is an advisor to the ministry of state security and was previously national director of public prosecutions at the National Prosecuting Authority. He will report to Vuyani Jarana, CEO of SAA Group. WESTJET took delivery of the first of 10 Boeing 787 Dreamliners on 17 January. This spring, WestJet will use the 787-9 to offer the first flight from Calgary to Dublin. The airline will also use 787s on services from Calgary to London Gatwick and Paris.

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ACWBITES COPA Airlines is to further expand its network in South America with a new non-stop flight connecting Suriname with its Panama City hub. The route is the first new international service the airline has secured in more than a decade. A Douglas DC-3-65TP struck power lines, trees and crashed into a field to the southeast of Stoltzfus Airfield in Wayne County, Ohio shortly after take-off, killing two occupants. The aircraft was owned by Priority Air Charter and was being offered for sale. According to Aviation Safety Network, the DC-3 first flew in 1944 and was heading to Akron/Canton Regional Airport in Ohio. ORGANISERS of Routes Americas 2019, the air service development forum for the Americas, have confirmed the speaker and panellist line-up ahead of the event which will take place 12-14 February in Quebec City, Canada. UNITED Airlines has ordered 24 additional Boeing 737 MAXs and four more Boeing 777-300ERs. The $4.5 billion order was placed last year and was booked as unidentified on Boeing’s Orders and Deliveries website. JUNEYAO Air will launch direct flights from Shanghai Pudong International Airport to Helsinki Airport in June-July 2019. Daily flights will be operated with a Boeing 787 Dreamliner.

ACW 28 JANUARY 2019

FTA: UK flying towards a No-Deal Brexit THE UK and the EU are yet to reach an agreement on its trading relationship post-Brexit, and this uncertainty is causing great frustration to the air freight sector. With political confusion still dogging the entire Brexit process, the possibility of a No-Deal withdrawal is becoming very real; an outcome which would severely impact the air freight sector and wider UK economy, according to the Freight Transport Association (FTA), the organisation which leads for logistics in the UK. For businesses trading across Europe, preserving the smooth flow of goods across the UK-EU border is their number one priority. But in the event of a No-Deal exit, there would be no transition period and all existing UK-EU co-operation and mutual recognition agreements in place for the aviation sector would cease with immediate effect. This means British-registered aircraft, airworthiness certificates and airfield security certifications would no longer be automatically recognised and flying permissions would be denied.

Comprehensive ‘mini deals’

If the UK does leave the EU without a withdrawal agreement in place, the air freight sector would urgently require a series of comprehensive “Mini Deals” to keep planes flying in EU airspace and mitigate any disruption to the UK’s supply chain. These deals would need to recognise flying rights, air worthiness certifications and air crew qualifications. And while some of these deals have already been negoti-

ated, many more are required to ensure that flying schedules can be confidently delivered. FTA has prepared an exhaustive list of “Mini Deals” which we will demand the UK government prioritises with Brussels urgently to limit

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the disruption of a No-Deal scenario. In the meantime, governments on both sides – EU and UK – have released enough detail on their No-Deal planning arrangements to allow businesses to begin their preparations. Given the increasing chances of a No-Deal, FTA strongly advises businesses to heed the advice provided by the government and ramp up their preparations, before it is too late. The logistics sector has been lobbying government for two years for detailed information and support to ensure that the nation can continue to trade efficiently after Brexit. FTA continues to work hard to convince decision makers of the crucial importance of leaving the EU with the least possible disruption. But with the clock ticking, there is still much to be agreed to ensure air freight – a mode accounting for 40% of UK imports and exports by value – continues to thrive post-Brexit. Efficient logistics is vital to keep Britain trading, directly having an impact on more than seven million people employed in the making, selling and moving of goods. With Brexit, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc.  A champion and challenger, FTA speaks to Government with one voice on behalf of the whole sector, with members from the road, rail, sea and air industries, as well as the buyers of freight services such as retailers and manufacturers.

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Air Cargo Global helps feed appetite for Norwegian seafood

ir Cargo Global has launched flights between Oslo and Tianjin, supporting demand for Norwegian seafood with twice-weekly services. Initially the route will depart twice-weekly on Thursdays and Saturdays, leaving Avinor Oslo Airport at 7.15am local time, with the Boeing 747-400F travelling to Tianjin Binhai International Airport. Peter Scholten, chief commercial officer of Air Cargo Global says: “We aim to step up to three weekly departures from March, if the market responds well to the increased capacity.” He says: “We have reached an agreement with Fish Forever, a major Chinese trading company that specialises in fish. They contacted us wanting to look into the possibility of importing fresh Norwegian seafood directly to China, because demand for high quality fresh fish is on the increase in the Chinese market.” Scholten says freight between Europe and Asia is more balanced, saying: “Previously, most of the air freight was from Asia to Europe. However, thanks to Norwegian seafood, among other things, there is a more even balance of freight going in both directions. From a business point of view this is of course a positive development.”

Avinor wants Norwegian seafood to reach markets in a fast and efficient market, with director of cargo Martin Langaas saying: “It is very pleasing that Air Cargo Global is now able to offer direct freight capacity to China, a market that has an ever-increasing demand for supply of fresh Norwegian seafood.

“With this route we contribute to Norwegian exporters getting their products quickly and efficiently onto the market, so that the seafood is served as fresh as possible. This is important for the seafood industry, and will contribute to value creation in Norway.”

CAL aids lunar mission CAL Cargo Airlines has transported the first Israeli spacecraft, the SpaceIL from Tel Aviv to Orlando, Florida on a Boeing 747-400ERF. The precious cargo required very strict temperature requirements, with the size and weight, as well as numerous dangerous goods making the mission very complicated. The CAL DG, CAL BIG and CAL AEROSPACE products and procedures were implemented prior to and throughout the entire operation. SpaceIL says: “The lunar landing will culminate eight years of intensive collaboration between SpaceIL and IAI, and will make Israel the fourth country after the US, China and Russia to reach the moon. “The spacecraft will be launched as a secondary payload on a SpaceX Falcon 9 rocket from Cape Canaveral, Florida, and its journey to the moon will last about two months, ending on its expected landing date. The Israeli lunar spacecraft will be the smallest to land on the moon, weighing only 600 kilograms.”

Loan to expand ABC’s fleet

AVIATION Capital Group (ACG) will structure, arrange and provide a guarantee for a senior loan to finance AirBridgeCargo (ABC) Airlines’ purchase of one Boeing 747-8 Freighter. The aircraft is expected to be delivered in February 2019 and the financing mandate was awarded in connection with ACG’s Aircraft Financing Solutions programme. Bob Roy, managing director of ACG says: “The award of a financing mandate from ABC is a notable achievement and an important milestone, as it will be the first aircraft transaction funded under the AFS programme.” Tatiana Arslanova, vice president of strategic management for Volga-Dnepr Group says: “We are grateful to ACG for their support both to ABC and the 747-8 programme. We are positive that this delivery will be the next step for us to enhance our quality to meet our customers’ needs.” In 2018, pharma volumes at ABC increased 60%, and the Russian airline is promising freight forwarders and their customers more specialist solutions for 2019. Last year, ABC extended its network of IATA CEIV Pharma and Qualified Envirotainer Provider certified stations, among other service upgrades. ABC also provided customers with the ability to request specific equipment to monitor and track each shipment’s environment to ensure the integrity of their pharma products throughout the transportation process.

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ACW 28 JANUARY 2019

NEW TECHNOLOGIES

MUCH of what was sci-fi just a generation ago is now the new normal. In the first of our n look at trends in New Technology in airfreight and the supply chain, th

he speed of development of technology available to airfreight managers and executives may feel like it is accelerating, because it actually is. At the turn of the century, smartphones in their modern form did not exist. Now, the supply chain can be can be run from the latest Apple product in your palm. In his book, The Singularity Is Near, Ray Kurzweil wrote: “The first computers were designed on paper and assembled by hand. Today, they are designed on computer workstations with the computers themselves working out many details of the next generation’s design, and are then produced in fully automated factories with only limited human intervention.” The quotation neatly reflects not only the advance of machines but at the same time the removal of labour. In this it also reflects much of what is going on in airfreight. The only goal of technological innovation in the supply chain is to make tasks less costly and more efficient. This is particularly the case in the logistics field, where capacity is short and skilled labour is in short supply as demographic pressures reduce the pool of labour. At the same time, customer demands for more rapid and stricter delivery timeframes are more stringent than ever before.

Big Data

The coming years will see a major trend in the collection and use of Big Data in airfreight. Most airfreight is commodity traffic. This is attractive to planners and software packages that can work on algorithms to produce the faster route or the keenest rate for the shipment. This is going to lead in the next few years to a growth of the presence of AI (artificial intelligence) and predictive software in airfreight. Along with this, the Internet of Things (IoT) will connect much technology in the supply chain in

ways that have not yet been devised. A third trend that can be said to be based on the first airside trial of a self-driving vehicle at a UK airport Big Data is the rise and rise of Blockchain. The potential to exploit AI to improve decision-making, transform business models and networks, and modify the customer experience will drive the payoff for digital enterprises. While using artificial intelligence appropriately will likely result in a great digital business payback with attractive ROI, the promise of general AI to perform any intellectual duty that a human can do, and vigorously absorb and comprehend as much as humans, remains uncertain. At the same time, blockchain is a public, dispersed, and decentralised archive that eliminates business friction by being autonomous of individual applications or contributors. The technology contains the promise to transform the supply chain. An applied approach to blockchain requires a clear understanding of the business opportunity, the drawbacks, its architecture, and a solid implementation strategy.

Warehousing technology

Forklifts have been a vital component to airfreight sheds for decades. Now a shift is being observed to programmable autonomous machines. This is being driven by the goal of improved efficiency. Robotics and autonomous machinery across the supply chain can now condense delivery times to just a 24 to 48-hour period. Autonomous forklifts and robots can pick products much sooner than humans, which means companies do not have to employ human forklift operators. The combination of lower costs and a speedier assembly is a dream come true for any business owner. Meanwhile, the growth of new technologies and the IoT will prompt logistics service providers and shippers to increase adoption of mobile apps. These apps exist for inventory manage-

ment, barcode scanning, fleet management, shipment tracking, order management, customer service and more. Logistics businesses can pull information and capabilities via an app to manage capacity and satisfy demand. Freight sharing apps are one of the prime app groupings that will see a significant boost through 2019.

Ice, ice baby

A decade ago, temperature-sensitive and perishable cargo was treated as general cargo. Now it has become a multi-billion dollar niche. This is why the expected rise in demand for temperature-sensitive products is a key technological trend in the global air cargo market. Transporting and handling temperature-sensitive products gives rise to both challenges and opportunities for all cold chain industry participants. Businesses, such as pharmaceutical companies, depend on air transport for its speed in delivering high-value, time-sensitive, and temperature-controlled products. “The International Air Transport Association took a step to support the air transport industry to comply with the pharmaceutical manufacturers’ requirements,” says Shakti Jhakar, a lead analyst at Technavio for research on logistics. There is a rise in the digitisation of systems in all the industries across the world. Similarly, a digital process will increase the air cargo value proposition by starting innovative services and solutions. The Air Waybill is one of the most important air cargo documents, and its conversion to an e-AWB is the first step toward digitisation. To fast-track the global acceptance of the e-AWB, IATA developed e-AWB360. The e-AWB360 program is planned around an airport community approach to e-AWB implementation. “The e-AWB desktop tool was launched to help small and medium air freight forwarders to create, send, and manage e-AWBs easily and efficiently. Challenges such as perceived complexity and a lack of harmonisation in e-AWB procedures between stakeholders, must also be mitigated,” adds Shakti.

Autonomous vehicles

Coming to an apron near you: the first airside trial of a self-driving vehicle at a UK airport held in March 2018 6

ACW 28 JANUARY 2019

Autonomous vehicles are becoming increasingly popular with products, such as Google’s driverless car, which rode around 1.6 to 2.2 million miles in October 2016. It is estimated that companies are expecting the commercialisation of autonomous cars by around 2019 to 2022. The popularity of autonomous vehicles has also been noted in the air cargo handling sector, into the logistics sector. In March 2018 IAG Cargo has undertaken the first airside trial of a self-driving vehicle at a UK airport to understand how they could be used in an airside environment. The CargoPod vehicle was designed by Oxbotica – an Oxford based company specialising in self-driving software, and it spent three and a half weeks running autonomously along a cargo route around the airside perimeter. The trial collected over 200 kms of data that will enable IAG and Heathrow Airport to assess potential opportunities for the use of autonomous vehicles in airport environments.

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Start-ups show

nternational Airlines Group (IAG) invited new companies to the Barbican Centre in London to show off how their innovations can help improve operations. The Hangar 51 Demo Day was held on 14 December 2018 at the performing arts centre in the Barbican Estate of the City of London, attended by representatives from across IAG’s business sectors. IAG Cargo backed two companies, data visualisation software company Emu Analytics and voice communications provider Mobilus Labs. Co-founder and CEO of Emu Analytics, Richard Vilton (pictured below) delivered the company’s presentation of its first step into aviation. Emu Analytics helps IAG Cargo with their ground efficiencies telematics tool and visualise air traffic control disruptions at Heathrow Airport. Its FLO.W platform provides real-time data to help companies make decisions, and Hangar 51 was Emu’s first step in the aviation business. Vilton told delegates: “It ingests flight path data on normal and strike days, and the degree it is impacted relative to others. The value is it makes insights impactful and easy to use. It is a web

Dublin’s fair city venue of

THE 2018 edition of Hangar 51 was the first one IAG Cargo was actively involved in, and innovation manager Sarah Kelly heralded it as a “great success”. Having spent a number of weeks working with Emu Analytics and Mobilus Labs, she says they have brought new ideas to IAG Cargo to help change and enhance operations. Such was the quality of the start-ups, IAG Cargo is starting conversations to work out how they can work together. Operations managers have

‘Smart Cargo Loc

ong Kong Air Cargo Terminals Ltd (Hactl) – Hong Kong’s largest independent cargo handler – has received the “Smart Airport Technovation Award – Operational Excellence”, in the Smart Airport Technovation Awards organised by Hong Kong International Airport (HKIA). The award was given to Hactl in recognition of its ‘Smart Cargo Locating’ project in November, which has gone live in the company’s SuperTerminal 1 facility. Smart Cargo Locating provides a fully-automated tracking and retrieval system for loose cargo. A reusable identifying tag is applied to the loose cargo on arrival; it is then automatically photographed, check-weighed, and the data and

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of our new monthly series, sponsored by Paris-based ECS Group, we hain, that will shape the sector into in the future.

how off new kit at Hangar 51

browser, there is no complex software and it is designed to make information engaging and it gets to the point.” The data can also be used for IAG Cargo’s vehicles at Heathrow, providing telematic services with real-time live data for cargo tugs. Vilton explained: “By analysing and processing patterns of behaviour, it can see when congestion is forming and knock on effects like not meeting cargo schedules. It uses historical analysis and can hold suppliers to account.” The service can also be used to provide information about the vehicles, with Vilton saying: “We can monitor cargo movements, and provide

dynamic fleet service schedules. It can inform operators of potential fuel trimming and vehicle emissions.” The other company representing the category of Future Cargo Logistics was Mobilus Labs, which aims to redefine voice communications through hands and ear free voice communications. Founder and CEO Jordan McRae (pictured right) took to the stage wearing the hat that featured wearable bone conduction technology, allowing wearers to receive voices directly to their inner ear. The technology has been tested with cargo controllers working in airside logistics at Dublin Airport.

been using Emu’s analytics and Mobilus has been trialled live in Dublin. Kelly says staff feedback has been positive for both innovations. Describing Emu, Kelly says: “It looks at how we can take data we already have and bring it to life so we can get more insights from that data. “Our operational managers have been heavily involved in what the platform looks like and as a result have been able to access the web application both to use it and then to feed back into the

team as to what works and what doesn’t work.” Mobilus designed the hardware to fit into the bump tap cap. Kelly says: “We’ve done a couple of trials, taking the technology over to Dublin where the drivers and the controllers working airside have trialled the technology. As a result of their feedback, there have been changes to the hardware and those improvements have helped. The feedback of the users has really been taken on board.” Hangar 51 is a 10-week programme to test

McRae told the audience: “On average twice a day there is a last minute stand change, this delays shipments or loses them altogether, costing up to £50,000 a day. Real time communications can reduce mis-shipments.” He explained that the technology has transitioned from the safety helmet to the cap, and Mobilus had to make sure it was compatible with handheld radios. McRae says the product received good feedback from the cargo ferryman in Dublin and the plan is to expand across IAG Cargo’s network. He says: “I recently flew to Madrid to discuss how to use it in the warehouse, to provide automated cargo tracking and move away from analogue walkie talkies. The next step is to continue the trial.” Once the companies had made their presentations, British Airways CEO Alex Cruz took to the stage to congratulate them for their hard work. He said: “What an incredible session, the quality of work, I really mean it, it’s outstanding, really high quality, I’m jealous. “The challenge is to help develop new solutions and the solutions answer questions. Ultimately that is what everybody will leave the sessions with. It is not just about today, it is a culture, something we are breathing from. There is more work to be done.”

enue of Mobilus trial where drivers and controllers put it to the test

whether the technology can work, and conversations are ongoing how they can work together to extend the trials. Kelly joined the innovation team a year ago, and feels IAG Cargo has been embracing new technology. She says: “From my experience, there is a great appetite to enhance what we do, so we can better serve our customers. There’s been a number of different trials over the last year, which have all aimed to better serve our customers.”

o Locating’ wins Hactl a Technovation award image are uploaded to Hactl’s COSAC-Plus cargo management system. A specially-adapted Smart Forklift identifies the cargo, and carries it to the storage area. The Smart Forklift obtains its geo-locations and route to the storage location, from Hactl’s self-developed in-door GPS system. The precise location where the cargo has been racked is automatically uploaded to the cargo’s record in COSAC-Plus for operational use, and for analytical purposes. When the cargo is needed for pallet build-up before a flight, the forklift driver is directed to the cargo’s racking location. He or she is then provided with a photographic image of the cargo and consignment to further assist identification of the cargo.

(Pictured from left) Eric Poon, Hactl senior manager – performance enhancement, Paul Won , general manager - operation services, Amy Lam, finance director; Fred Lam, CEO Airport Authority Hong Kong; and Cindy Ng, executive director, Hactl,

The operational excellence award was presented to Hactl by Fred Lam, chief executive officer of Airport Authority Hong Kong, during the two-day Smart Airport – Technovation Conference and Exhibition, held at Hong Kong Convention and Exhibition Centre. Says Eric Poon, Hactl’s senior manager – performance enhancement: “We are very grateful to HKIA for recognising our achievement with the new Smart Cargo Locating system. “Smart Cargo Locating eliminates manual data input. This eradicates potential keying errors. “It then makes retrieval simpler and faster for the operative, helping us to streamline our processes, improve efficiency and further enhance our customer service.”

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FedEx launches QR Pay in Asia Pacific

FEDEX Express has launched QR (Quick Response) Pay, a QR-code based mobile payment, in Australia, Hong Kong, Malaysia, Philippines, Singapore, and Thailand. This payment method facilitates an efficient shipping process. Supplementing existing online payment methods, such as through FedEx Billing Online, QR Pay is a secure and convenient mobile payment option using a QR code, which is embedded with a unique payment link. QR Pay simplifies the payment process by eliminating the need to have shopping carts, booking engines or checkouts. With QR Pay, customers can make payments with credit cards as well as e-wallets such as AliPay and WeChat Pay where available. Customers can simply scan the QR code provided by FedEx couriers or printed on invoices on smartphones, which then automatically directs them to the payment page. “FedEx is constantly looking for ways to innovate, pioneer new solutions and offerings to address customers’ evolving needs in the region,” said Karen Reddington, president, Asia Pacific, FedEx Express. “The introduction of QR Pay is an example of how FedEx is using technology to provide greater flexibility and convenience for our customers.” Asia Pacific is leading the world in mobile payment with more than half (53%) of connected consumers using their mobile devices to pay for goods or services at point of sale. Rising mobile penetration is a key driver, with the number of smartphone users across region now over a billion. Seeing the clear trend towards mobile payment adoption, SMEs are also harnessing new technologies to expand their business. According to a recent research commissioned by FedEx, 73% of SMEs are already current users of mobile payments, with 69% of these businesses likely to increase usage in the next 12 months. Thirty percent of current non-users are likely to begin using mobile payments as well. QR Pay will soon be expanded to other markets in Asia Pacific. QR code provided on invoice is available in Hong Kong, Malaysia, Singapore and Thailand.

In the next New Technolgies section, we look at drones & UAV. February 25 2019 issue ACW 28 JANUARY 2019

EUROPEAN CARGO

Airports walk in the cold November rain Following a sustained period of strong growth, Europe is now experiencing a slowdown with several airports reporting falling volumes.

reight traffic across European airports fell for the first time in three years in November due to the challenging geopolitical and economic environment, Airports Council International (ACI) Europe reports. Among EU airports, freight traffic was down 2.1% and non-EU airports were up 3.6%, with Liege Airport, Istanbul Ataturk and Madrid Airport the only top 10 airports seeing volumes increase. All the other top 10 airports saw volumes

declining in November, with some seeing quite substantial falls. Frankfurt Airport, Europe’s busiest freight hub was down 1.7% to 185,985 tonnes, followed by Paris Charles de Gaulle down 5% to 173,100 tonnes. Amsterdam Airport Schiphol saw a small drop of 0.8% to 143,974 tonnes while Heathrow Airport was down 10.4% to 138,291 tonnes. The other top 10 airports to see volumes falling were Luxembourg Airport by 3.1% to 80,764 tonnes, Cologne-Bonn Airport by 0.7% to 77,939 tonnes and Milan Malpensa Airport by 2.8% to 47,573 tonnes. Among the top 10 airports that saw growth, Istanbul Ataturk was up 6.9% to 109,624 tonnes, Liege by 17.9% to 83,480 tonnes and Madrid by 8% to 46,911 tonnes. Olivier Jankovec, director general of ACI

Europe warns that aviation in Europe is facing a slowdown. He says: “We are facing a Eurozone close to stagnation with business confidence now at a four-year low, coupled with global growth los-

ing momentum in a synchronised way and a slowdown in trade. While all of this is only taking its toll on freight traffic for now, there is no doubt that passenger demand levels are going to feel the effects at some point.”

Truckers drive growth in Brussels CARGO volumes at Brussels Airport increased by 5.8% in 2018 with trucked and belly cargo making up for a fall in freighter and integrator traffic. In 2018, Brussels Airport handled 731,613 tonnes, the highest in 10 years with total flown cargo up 1.5% to 543,493 tonnes and trucked cargo increasing 20.9% to 188,120 tonnes. Belly cargo was up 14.1% to 162,424 tonnes. Full freighter traffic was down 5% to 161,131 tonnes with express volumes down 1.7%, while

across the flown cargo segment, imports were up 7% whilst exports remained stable. Cargo was up 2.1% in December to 62,137 tonnes, with weaker growth being attributed to the strike in mid-December causing many airlines to cancel cargo flights as a precaution. Belly cargo was up 2.8% to 14,213 tonnes, while integrators were down 12% to 16,589 tonnes. Trucked cargo was up 33.8% to 16,857 tonnes.

Cargo booms at Budapest THE cargo boom at Budapest Airport continued in 2018, with volumes growing 14.9% to 146,113 tonnes. Cargo continues to be made up of low weight and high value products including electronics, mobile phones, computer parts, car parts and pharma. Unusual cargo also passed through Budapest, including Hungarian-bred calves

ACW 28 JANUARY 2019

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heading for Israel and racehorses travelling to China and Russia. Rene Droese, director property and cargo at Budapest Airport says: “We are focusing all our efforts to make good use of the ideal conditions in Budapest and turn Liszt Ferenc International Airport into a major cargo logistics hub of the Central-Eastern European region.”

EUROPEAN CARGO

Cargo down 3% at Linz

On the hunt for airfreight’s talent

bined with an extensive large network makes me one-of-a-kind in Belgium.” He started his forwarding career in February 1992, moving to Brussels Airport in 2003 to enter airfreight forwarding. He spent the next 16 years mostly working out of Brucargo.

Tight labour market

CARGO volumes at Blue Danube Airport Linz fell by almost 3% in 2018 with transit freight declining while local cargo traffic increased. Volumes fell by 2.9% to 52,414 tonnes with the Ljubljana-Linz-Leipzig cargo connection being unbundled, with the entire capacity of the Upper Austrian market being made available. The airport says this led to a decline in transit freight while local cargo trucking traffic increased by 0.9%. Manfred Grubauer, chairman of the supervisory board says 2018 was a “good year” but aviation remains “volatile” with new challenges coming up all the time.

He says: “It is therefore important that the management and also the supervisory board always have their finger on the pulse of the times so that they can react quickly to current developments when needed.” Markus Achleitner, state economic council member, owner representative of the state of Upper Austria says: “The Upper Austrian economy relies on good scheduled flights. The developed strategy is conclusive and aims to establish additional scheduled flight connections. The challenge for the airport will now be to implement this goal with appropriate acquisition measures.”

new executive headhunting agency has been established in Belgium to look for managerial and professional talent in the country’s logistics industry. Formed by Philippe Fierens, a former cargo development manager for Brussels Airport, ExSeCo, short for Executive Search Company, will seek to find middle and senior managers for the Belgian airfreight industry. Fierens’ background is in logistics management, not human resources (HR), which he considers is an asset in his new business compared with more established employment and headhunting firms. He says: “My experience is my biggest benefit as none of the others have the same. Most have an HR background while I am having a purely logistical background. This experience com-

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With the labour market the tightest it has been for decades, launching a headhunter’s agency may not have been a wise decision. Fierens says: “The best time is when you are really ready and feel comfortable to handle the business as it comes. “Within the first four weeks I could look at over 40 CVs (curriculum vitaes) from people who spontaneously send me their own CV. “I am honestly not focusing as such on jobseekers, I am not an unemployment office nor a temp/interim office; I am undertaking executive searches to supply the best talent possible to companies to match their DNA. Most of the times, these talents are already at work somewhere else, so I don’t really rely on jobseekers. “I want to grow ExSeCo and be the best-inclass in the Belgian Logistical sector, hopefully together with a strong team as soon as I can afford to do so. I will prove to be the best and my team will support this as soon as we can do so.” ExSeCo is based in an office at Brucargo, the cargo area of Brussels Airport, which has a community of over 4,000 people working there.

ACW 28 JANUARY 2019

FIRST PERSON SINGULAR

IN THE FIRST OF OUR NEW SERIES OF OP-ED PAGES, BRANDON FRIED OF THE AIRFORWARDERS ASSOCIATION GIVES HIS THOUGHTS ON HOW JFK CAN RECOVER ITS TARNISHED CARGO CROWN

How JFK can re-establish itself as the premier US East Coast cargo gateway

ne of the critical rules in business is to put the customer first - otherwise, your competition will. In other words, failing to service and satisfy customer needs will result in a loss of customers and ultimately profit.

Unfortunately, a 20% decline in cargo volume over the last decade at New York JFK International Airport seems to be proving this imperative, leaving many to wonder what will happen to the airport as a viable cargo gateway if the needs of its stakeholders are ignored. In a recent meeting hosted by the Airforwarders Association at JFK International Airport, a packed room filled with local stakeholders worked with a panel of regional and national experts to identify reasons the airport has lost its lustre as an East Coast cargo gateway. A prevalent issue in the discussion was the extreme vehicle congestion caused by the Van Wyck Expressway approaching the airport. This major access highway now supports more than 170,000 vehicles per day, and despite plans for a previously approved long-awaited extra lane widening, local authorities recently diverted the project in favour of an additional study, allowing JFK access to worsen for passengers and cargo shippers alike.

Hit the road

Trucking companies feel the most immediate impact of the old cargo area at JFK. Upon arrival at the facility, truckers encounter cargo facilities that are nearing 50 years old and have few of the modern operational space amenities found in many other significant cargo gateways around the country. Within the airport, roads and parking facilities are not tractor-trailer friendly, and cannot accommodate the now common 53-foot

ACW 28 JANUARY 2019

equipment which is prevalent throughout the nation. This challenge makes the manoeuvring process challenging for such trucks, and impossible in some areas of the airport. Another challenge, which is not unique to JFK is the use of third-party ground handling companies contracted by airlines to process their freight shipments. It has become common for carriers lacking flight frequency to shutter their facilities and adopt this cost-saving alternative, allowing another company to accept and recover cargo for several airlines under the same roof. This practice, while economically beneficial for the carrier, means that there is often insufficient staffing and service in cargo facilities which leads to long lines and extreme congestion. Regardless of the cause, airport congestion at JFK costs airlines, freight forwarders, and truckers significant money in excess waiting time fees. In many instances, these costs cannot be passed to the beneficial cargo owner, so service providers are forced to absorb them or increase their rates. The biggest suspected loser out of this whole situation, however, is not the shipper, but the economy of New York City. Simply put, the increased costs have made the area less commercially attractive as a business centre destination for cargo, and as a result, the volume will likely continue to decrease. Until recently, JFK was considered the first cargo gateway on the East Coast with more flights than any other airport to the most international destinations. Many suppose that shippers and stakeholders were forced to accept its access challenges because of these benefits. But gradually, some airlines and forwarders began to explore alternatives that could provide the same access to the New York City market from other airports. Two significant carriers now operate extensive passenger and freight hubs in Newark and Philadelphia, respectively, providing less congested shipment processing without the significant JFK delays. Aircraft manufacturers are now enablers for airlines in furnishing alternatives to JFK as well. New planes which are capable of providing economical operations from smaller airports, while carrying lower but prof-

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itable passenger and cargo loads, have begun serving popular European destinations from less constrained cities in the region such as Boston, Washington, Hartford, Pittsburgh, Columbus, and even Poughkeepsie. The landing costs at these airports are less for airlines and in many cases cheaper and more efficient for New York area shippers who are willing to make the drive. Though other airports have solved some of JFKâ&#x20AC;&#x2122;s prohibitive shortcomings, the former premier cargo gateway can recover from its current decline in volume through serious political commitment, infrastructure investment, automation implementation, and extensive stakeholder engagement. The recovery process will take time but should result in the restored trust of the cargo industry. Local politicians must understand that the economic vitality of JFK and the region is at stake, and other cities are competing for both passengers and cargo to energise their urban areas. The governorâ&#x20AC;&#x2122;s recent allowance for a $132 million cargo area renovation is a good start as it will enable the airport to execute plans for a new, 346,000-foot cargo facility. The widening of the Van Wyck Expressway must begin now to improve airport access and reduce congestion in the area. Roads within the airport must also undergo widening, and a truck marshalling area should be established to enhance overall efficiency. Leveraging technology will be an essential component for change, as advances in automation empower cargo handlers to be more efficient in dispatch planning and truck processing. However, digitalisation is only a tool and is still susceptible to inaccurate data input that has the potential to create new inefficiencies. Now is the time for JFK to invite new truck processing automation ideas for testing in the cargo area of the airport. Finally, stakeholder groups including the JFK Air Cargo Association, the Kennedy Airport Airlines Management Council and the JFK Chamber of Commerce must continue engagement with the New York Port Authority. In the meantime, the Airforwarders Association will maintain its ongoing effort to alleviate airport cargo area congestion at JFK and other gateway airports throughout the United States.

TRADEFINDER Airlines

Charters

Freight Forwarders

Turkey

United Kingdom

India

GSSAs United Arab Emirates

Freight Forwarders

Hong Kong

USA

World Air Cargo Awards

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