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WORLD AIRPORTS Sponsored.COM by FREIGHTERS.COM
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The weekly newspaper for air cargo professionals Volume: 19
Issue: 35
5 September 2016
Freightos buys WebCargoNet creating freight rate powerhouse
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he world’s largest freight database has been created after Freightos agreed a deal to acquire air cargo rate management provider WebCargoNet. Freightos says it will form the biggest list of air, ocean, and land freight rates with hundreds of millions of international and domestic rates and routes, enabling SMEs and freight forwarders to conduct business online with ease. No financial details have been revealed about the deal, but the acquisition involved both cash and Freightos shares. Freightos, with WebCargoNet, has accumulated well over 200 million freight pricing data points. They says the convergence of data from both companies will make it simpler and faster than ever before for carriers and for-
warders to sell their services and for importers and exporters to buy, resulting in smoother world trade. Freightos founder and chief executive officer (CEO), Zvi Schreiber (pictured above) says: “Passenger travel booking went online half a century ago. Today, WebCargoNet has finally done the same for air cargo, and shares Freightos’ vision of frictionless
Antonov to build more AN-225s
global trade. “This strategic consolidation of technologies is a sure signal that the logistics technology industry is ripe for growth. Combining these two technologies takes us a step closer to bringing freight shipping online and into the 21st century for companies big and small.” There will be no immediate changes to current offerings of
Antonov is to build AN-225s after signing an agreement with the Aerospace Industry Corporation of China (AICC). The first stage of the co-operation will involve constructing (pictured above) a second modernised AN-225 Mriya at Antonov Company and delivering the aircraft to AICC. The second stage will consist of organising the joint series production of the AN-225 in China under licence of the Antonov Company. The AN-225 was designed and constructed between 1984 and 1988, and can transport up to 250 tonnes of cargo. The aircraft has been used on a number of flights for outsized cargo, including moving a generator to Perth, Australia from the Czech Republic with stops in Turkmenistan, India and Malaysia.
either company, but over time they say strategic synergies will be leveraged to provide more comprehensive and innovative online services to carriers, forwarders, and shippers. WebCargoNet will retain its independent brand, bringing air cargo rates online worldwide, complementing the Freightos’ AcceleRate freight rate management service and the Freightos Marketplace. WebCargoNet CEO, Manuel Galindo says: “Joining Freightos brings WebCargoNet instant scale and the capacity to rapidly advance the technologies we are bringing to market. “Hundreds of global forwarders and dozens of air carriers are sure to benefit as together we continue to make freight quoting and booking online a reality.”
Asia Pacific on the up in July
Cargo volumes across Asia Pacific have picked up in July following a number of tough months, with freight tonne kilometres (FTK) increasing by 3.9 per cent, the Association of Asia Pacific Airlines (AAPA) says. FTKs across the region were up by 3.9 per cent to 5.5 billion though still down 1.5 per cent year-to-date (YTD) to 36.8 billion. Capacity in freight available tonne kilometres increased by 3.4 per cent in July to 8.9 billion and by 2.4 per cent YTD to 60.1 billion. The load factor rose by 0.4 percentage points to 62.1 per cent in July, but was down 2.5 percentage points to 61.3 per cent YTD. AAPA director general, Andrew Herdman (pictured) says: “International air cargo demand has been relatively weak, with yearto-date demand registering a 1.5 per cent decline compared to the same period a year ago, but we have seen a modest pick-up in air cargo volumes during the past couple of months.”
FIVE MORE YEARS FOR GERBER
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CHALLENGING TIMES FOR SHARJAH
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PHARMA INVESTMENTS BY IAG PAYING OFF
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60 SECONDS WITH ODED LAVEE
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C.H. Robinson to buy APC Logistics for $225m C.H. Robinson has agreed to buy APC Logistics - a freight forwarder and customs brokerage firm in Australasia. C.H. Robinson intends to purchase APC for approximately 300 million Australian dollars ($225 million) in cash. The acquisition is set to be accretive in 2016 and 2017 and will be financed through cash and funds from C.H. Robinson’s existing revolving credit facility. The two firms have had a long-standing agent relationship for business in Australia and New Zealand. The agreement is subject to certain customary closing conditions, including regulatory approval. C.H. Robinson chairman and chief executive officer (CEO), John Wiehoff says: “This acquisition allows us to add great talent to our Global Forwarding team and advances the strategy to expand our global network. We will work hard to successfully integrate the valued employees, customers and suppliers of APC.” APC had AUS$334.2 million in revenues for the year ending 30 June, 2016. CEO Tony Considine says he believes the move will position APC to better serve customers and foster growth.
aircargoweek.com
NEWSWEEK Airships to move freight to Alaska and Northern Canada
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ybrid Enterprises has signed a strategic partnership with PRL Logistics and Straightline Aviation to use LMH-1 airships to move airfreight and personnel to isolated regions of Alaska and Northern Canada. Hybrid Enterprises is the reseller of the LMH-1 airship, which was developed and built by Lockheed Martin’s Hybrid Airships. It is designed to land on almost any surface including snow, gravel or water and can carry up to 22 tonnes of freight along with 18 passengers and crew. The football field sized airships are described as an environmentally friendly way to move freight and personnel to isolated regions of Alaska and Northern Canada, and its hovercraft-like Air Cushion Landing System facilitates taxiing and holds the aircraft on the ground. Lockheed Martin advanced development programs executive vice president
and general manager, Rob Weiss says: “Lockheed Martin would be proud to have its Hybrid Airships operating in Alaska. Alaska is an ideal location for the Hybrid Airship to operate. The airship enables access to Alaska’s most isolated regions, and is designed to protect the sensitive ecological environment.” US senator for Alaska, Dan Sullivan says:
“I am pleased to hear this announcement. Alaska is a storehouse of immense natural resource wealth. This combination of technology and innovation will enable access to resources and provide needed benefits to our infrastructure. It is an example of a company operating to provide a transportation solution to meet Alaska’s unique challenges.”
Five more years for Gerber
LUFTHANSA Cargo has extended chief executive officer (CEO) Peter Gerber’s contract for another five years. Gerber will lead the carrier as CEO and chairman of the executive board after the supervisory board unanimously agreed an early extension of his contract to 30 April 2022. Lufthansa Cargo says it has initiated a comprehensive restructuring process in recent months aimed at achieving a sustainable increase in the airline’s profitability once again. Peter Gerber has been CEO and chairman of the executive board of Lufthansa Cargo since May 2014. Before that, the 52-year-old was on the executive board of Lufthansa Passenger Airlines, where he headed up the human resources, IT & services division.
First freighter to fly into Lithuania LITHUANIA is to benefit from its first freighter flight to China when Belarusian carrier, TransAviaExpress launches Tianjin – Kaunas services on 15 September. The twice-weekly scheduled charter service will be operated with a Boeing 747-300 Freighter on Sundays and Wednesdays, and has been driven by Chinese e-trade exports. The twice-weekly flights will serve as a test for the viability of the service and plans for 2017 will be based on these results. Co-owner and member of the Board of Lithuanian logistics company Hoptrans, Jan Hyttel says: “The new service is driven by Chinese e-trade exports, and shipments will be distributed from Kaunas to the Baltic, Scandinavian, Central European and other markets by Hoptrans’ finely-tuned network of trucking services.” He adds: “Even more unique, this new freighter service will from the very start also build up volumes of cargo to China from European exporters to contribute to a balanced operation.” Hyttel predicts perishable and dairy exports from Poland and Lithuania to China will perform strongly and the new service will provide strong demand for the freighter service. He says: “The coming new freighter service will offer shorter flying times compared to operations into other airports such as Copenhagen and Frankfurt, trucking and logistics are provided at competitive costs, and combined these factors will contribute to bolster the success of this new venture.”
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NEWS WEEK Carriers flock to reconnect to Persia
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ran is set to be one of the fastest growing air cargo markets and legacy carriers IAG Cargo and KLM are targeting the market by starting new bellyhold routes. IAG begun Heathrow Airport to Tehran from six times a week from 1 September using a British Airways Boeing B777-200 aircraft and says it will improve connectivity between European and Middle Eastern markets, providing businesses with greater flexibility over where and when they ship their goods and provide forwarders with capacity of six pallets and up to 20 tonnes of lift on each flight.
The new route comes into service following the easing of European Union sanctions against Iran. The country’s economy in 2016 and 2017 is expected to grow by 4.8 per cent and 5.4 per cent, respectively. IAG Cargo head of commercial, David Shepherd says Iran offers a huge opportunity for global trade and is confident the route will benefit customers and be well received. KLM will resume Amsterdam to Tehran flights from 30 October, supplementing the Air France Paris – Tehran services, which restarted on 16 April. KLM says restarting services, which it ran from July 1991 to April 2013 offers new opportunities for firms seeking to do business in Iran.
LCD conversion re-delivered by IPR IPR Conversions has re-delivered its first large cargo door (LCD) and structural tube conversion to Summit Air based in Yellowknife, Canada – an ATR72-202 Freighter. The company says this was converted by IPR’s partner ASI-Maintenance in Toulouse-Francazal, France, and marks the first IPR-converted LCD aircraft since the the purchase of the supplemental type certificate from Alenia last year. Summit Air has also booked an additional ATR72 LCD conversion slot for 2017 and is considering enlarging its ATR
JettCare launched by Jettainer
New conversion services added by PEMCO
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emco World Air Services (PEMCO) engineering has added new services to support its PEMCO-converted aircraft operators and MRO customers. These include training for liaison engineers, customised electronic weight and balance load charts, certification consulting services, and MRO consulting services. Training services focus on liaison engineers of PEMCO-converted aircraft operators. Liaison engineers are provided for a 16-hour hands-on course so they can take over processes for their firm’s PEMCO-converted freighters. The PEMCO customised electronic weight
and balance load chart allows customers to optimise payload and minimise lateral imbalance of their PEMCO-converted aircraft. The company says not only does this save operators time and money from developing their own, but PEMCO’s chart is customised for each aircraft to provide pilots and operators the most accurate and reliable information. PEMCO director of engineering, Victor Burnett says: “Customers asked for additional support and we listened.” He adds: “We are enhancing our engineering services to assist airline operators with their business utilising our core strengths.”
fleet in the future. The conversion, MSN444, is equipped with an Ancra Cargo Loading System (CLS) allowing five 88 x 108 containers to be loaded.
JETTAINER will train thousands of ground service staff as part of its JettCare programme to create awareness for the value and importance of airfreight containers and pallets. The outsourced unit load device (ULD) management company, which is a wholly-owned subsidiary of Lufthansa Cargo, will make the staff ‘ULD-X-Perts’ by training them
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to handle ULDs correctly, prevent damages and understand the operational and financial effects of any faulty or missing ULDs. Those who successfully complete the training programme will receive a ‘ULD-XPert’ certificate. Jettainer managing director, Carsten Hernig says: “The JettCare programme is enabling us to invest in sustainable ULD management and conserve resources. By creating awareness in ground handling staff, we will also reduce costs, which will, in turn, benefit our customers.” In addition to the training course, Jettainer has created a mascot, JettJack, with stickers and comic-style callouts focused on handling ULDs properly to be trialled with two airlines before being rolled out to other customers.
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NEWSWEEK Classic Porsche flown to Canada Hearts were racing when international freight forwarder a. hartrodt (Belgium) arranged the transportation of a classic Porsche 356C to fly from Brussels to Montreal. The classic car, which was built in 1965 and had been lovingly restored by the Porsche Centre Brussels Classic, flew in the bellyhold of an Air Canada flight for delivery to a private owner in Canada. The 906 kilogramme car was strapped to a specially made pallet construction so it would fit through the aircraft cargo hold door for the flight on 22 August.
Customs broker Shenkira, which specialises in automotive legislation and documentation handled the necessary paperwork. a.hartrodt (Belgium) airfreight director, Philippe Fierens says: “It was a pleasure for the Porsche Centre Brussels Classic, Shenkira, and a. hartrodt Airfreight Brussels to combine their strengths and expertise to execute this special assignment. “It was followed through by us right from the cars departure from the premises of the Porsche Centre until the key was turned by the owner to hear the engine roar.”
150,000sq ft Heathrow hub for DHL
Construction of DHL Express UK’s new South East operation and head office close to Heathrow Airport has been completed and will be fully operational in early 2017. The 150,000 square foot facility developed by Airport Property Partnership (APP), a joint venture between SEGRO and Aviva Investors is based in Colnbrook, on the Western edge of Heathrow Airport. DHL Express will relocate its head office and South East operation from its current premises at APP’s Orbital Park and through a phased transition, the Colnbrook site will be fully operational in early 2017. The facility will be home to 750 employees and manage DHL Express shipments for the South East of England, with sorting machinery optimised for efficiency and 24/7 operations. To cater for the rapid rise of international shipping and e-commerce, the facility can handle up to 28,000 items per hour.
APP director and SEGRO business unit director for Greater London, Alan Holland says: “It’s great to announce that we have reached completion of this development for DHL Express. This state of the art facility will provide the additional capacity which the company needs in order to cater for the significant growth they are experiencing.” “DHL Express is an important customer of APP, and as a result of our long-term relationship with them, we have been able to work together to ensure that this new unit meets their exact specification.” DHL Express UK programme director, John Baird says: “This brand new state-of-the-art facility incorporates the latest technology and security options. “Providing increased efficiency and sustainability, the new building gives our business the capacity and capability to meet our customers’ growing needs for many years to come.”
Aeroflot cargo revenue up 17% in H1
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eroflot’s cargo revenue has increased by 17.5 per cent in the first half of 2016 while the airline returned to profit. Cargo revenue rose by 17.5 per cent to 5.2 billion roubles ($80 million) in the first half of 2016 while the airline made a profit of 2.4 billion roubles compared to a 3.5 billion loss in the same period of 2015. Total revenue also increased by 26.8 per cent to 223.8 billion roubles.
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Aeroflot deputy chief executive officer for commerce and finance, Shamil Kurmashov says: “Continued optimisation across Group companies as well as the revaluation of investments resulted in additional one-off costs, but nevertheless Aeroflot Group delivered net profit of RUB 2,467 million versus a net loss of RUB 3,541 million a year earlier.” Kurmashov says Aeroflot’s aim for the rest of the year is to make a profit so it can pay dividends to shareholders.
CARGO HANDLING
Challenging times for Sharjah but efficiency on the up
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his year has been a challenging one for Sharjah Aviation Services as even the Middle East has seen a slowdown. Head of cargo at Sharjah International Airport, Gonzalo Jacob (pictured) explains it has been tough due to soft markets, while the sea-air business has “almost disappeared” but despite this feels there are interesting prospects if you remain flexible. Jacob says generally speaking, perishable products and healthcare are the growing cargo sectors, with perishables out of the Indian subcontinent and specific African market segments are performing well. Sharjah is planning on investing, Jacob explains: “The year 2016 has seen us investing in new infrastructure, such as a new dedicated temperature-controlled centre for health-
care products, specialised monitoring systems and ancillary equipment for TTC healthcare products.” Jacob says in April Sharjah successfully completed an audit by the International Air Transport Association’s Center of Excellence for Independant Validators (CEIV) pharmaceutical certification and it has also achieved a first general handling agent (GHA) in the Middle East and Africa. Jacob also notes: “We are in the last phase prior to roll-out completion of our NextGen Cargo Management System, which will pave the way for an all new era and approach to cargo handling systems, for both us, as users as well as our customers. Further IT related investments are expected for next year as well as facility enhancements to tweak existing capacity
and services.” Jacob feels air cargo has evolved in the last years, becoming more of an “opportunistic business”, with less steady flows and more single chances for quick, flexible providers, in all areas. He adds: “Having said so, we seek to grow in all areas, especially enhancing our offering of bespoke services where there is growth, whatever that is, including e-commerce.” Jacob says from the perspective of a GHA located in the Middle East, the biggest operational challenge is represented by the adverse climatic conditions, which one way or the other affect all regional operations for half a year, every year. Sharjah is aiming to improve cargo handling such as in the unit load device (ULD) build-up and break-down of general/mixed cargo, which Jacob says does not offer much of the automa-
tion possibilities that would theoretically be possible. However, he notes integration and automation of clerical and e-services will improve efficiency and customer satisfaction, while there is efficiency and process improvements to be made through IoT and e-freight. Sharjah is in a competitive air cargo location, and Jacob says with no more than 12 kilometres between Sharjah and the region’s busiest airport, Dubai, work is definitely challenging, but as the distance itself shows, there is no remarkable distance so Sharjah is a “good, flexible alternative”. He adds: “The development shown in the region, especially when looking at the market opening in Oman and Saudi Arabia has brought an otherwise unusual development for the region. Let’s see how it develops, but will definitely bring a new air.”
Finnair selects HUB to run new terminal
FINNAIR Cargo has selected HUB logistics to operate its new ‘next-generation’ cargo terminal (artist impression pictured below) at Helsinki Airport from December this year. The carrier is scheduled to open its new 37,000 square metre COOL Nordic Cargo hub in May 2017, and will work with HUB to ensure a smooth transition and optimised usage of the new automated terminal. For the next eight months, Finnair Cargo will work closely with HUB to maximise the use of the new facility from the start of operations. The transition from the current terminal operator, Suomen Transval Oy, will be carried out as a transfer of business, and Transval employees working in the Finnair Cargo terminal at Helsinki will transfer to HUB logistics. Finnair Cargo managing director, Janne Tarvainen says: “Cargo is an integral part of Finnair’s growth strategy and we intend to
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make the most of the warehouse automation and process optimisation capabilities of our new terminal. “This important step is now a great opportunity for us to significantly increase the volumes of cargo at our Helsinki hub. We look forward to developing the new cargo handling model together with HUB logistics.” Finnair’s new Airbus A350 fleet will bring up to 50 per cent more cargo capacity by 2020. Finnair has invested 80 million euros ($89 million) in building a new cargo terminal at Helsinki Airport, with special cargo handling areas for pharmaceutical and life science products as well as perishable products, including fish and seafood. The new terminal will have a high level of warehouse automation with the aim of ensuring a high quality of airfreight service and competitive handling costs.
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INDIAN SUBCONTINENT
Moves underway to end Bangladesh cargo ban
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ultiple moves are underway to end a ban by three countries on air cargo directly flown from Bangladesh a source in the capital Dhaka tells Air Cargo Week (ACW). The three countries are Australia, the UK and most recently Germany. Citing safety concerns the three now require cargo originating from Bangladesh to be re-screened in a third country a move which adds both costs and time. Whilst one newspaper has fulminated about the extra five cents per kilogram to reroute goods to Germany more damaging is the decision some carriers, such as Lufthansa, have made to suspend flights completely. “It has a disastrous effect on exports as Biman Bangladesh Airlines cannot carry an average of 100 tons cargo per week, mostly garments and vegetables, on its direct flights,” Bangladesh Freight Forwarders Association (BAFFA) director of public relations, Nurul
Amin tells ACW. This has created extra pressure in an already critical capacity situation from Bangladesh with BAFFA and other trade bodies working to get the ban lifted, he added. Part of this has been a concerted effort by the public and private sector to tackle the root of the problem – misgivings about airport security at Bangladesh’s major international airport Hazrat Shahjalal International Airport – something cited by both the British and German governments when the ban was announced. The Bangladesh Government, Civil Aviation Authority of Bangladesh (CAAB) and Biman Bangladesh Airlines have taken number of measures, Amin reports. Among them are “purchasing necessary security equipment, recruiting manpower and providing them training by UK firm Redline on security control and scanning baggage and
cargo. With all above security situation has improved significantly,” he adds. Currently the onus is on the government to use diplomacy to persuade the UK to end the ban while continue to further improve security in consultation with world’s aviation security experts, Amin explains. Corroboration for this is indirect but wellsourced with the British High Commission publicly signalling support for the initiative. Security at Hazrat Shahjalal International Air-
port has improved, but more needs to be done to get the ban on Dhaka-London direct air cargo withdrawn, British High Commissioner Alison Blake said according the businessnews24bd. com website. “We have been working for a long time with the government of Bangladesh on the ban issue. It is an ongoing programme. Many things have improved,” Blake said according to the site. Officials at the British Mission were repeatedly unavailable for comment when approached.
One truck for Bangladeshi - Indian trade Cargo trucks originating in Bangladesh can now travel in to India after clearing customs at the Petropole-Benapole border crossing thanks to the efforts of Expo Freight (EFL) and its offices in India and Bangladesh. Cargo brought into India from Bangladesh is typically transferred into Indian trucks after border clearance but as of 29 August, Bangladeshi trucks can move seamlessly across the border. The first truck travelled through the states of West Bengal, Jharkhand, Bihar and Uttar Pradesh before arriving at its final destination in Alipur, Delhi. The Petropole-Benapole border crossing is about 90 kilometres from Kolkata, and is connected to the city by National Highway 35. The Petropole Land Customs station accounts for nearly 60 per cent of the bilateral trade between India and Bangladesh. On average, between 350 and 400 trucks leave India for Bangladesh a day and 250 the other way use
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the Petropole-Benapole border crossing. EFL says allowing the same truck from Bangladesh to cross in to India and deliver goods will greatly enhance the efficiency of logistics by significantly reducing waiting times as well as reducing the company’s global carbon footprint by allowing it to engage the services of fewer trucks. EFL says: “International trade serves as a potent force that bridges not just inter- country economic relations, but also as one that promotes amicability and mutual cooperation between countries. “EFL strives to make valuable contributions to smoothly facilitate the logistical needs of our clients, thereby promoting international trade.” Economic ties between India and Bangladesh have been strengthen through bilateral and multilateral trade agreements such as the South Asian Free Trade Agreement and South Asian Preferential Trade Agreement.
PHARMA NEWS ROUND-UP
Pharma investments made by IAG Cargo paying off
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AG Cargo’s Constant Climate (CC) product has been running for 10 years and continues to go from strength to strength, providing a boost in a challenging marketplace. The temperature-sensitive pharmaceuticals market is a growing area of premium cargo and has seen 8-10 per cent growth. IAG Cargo’s global head of pharmaceuticals and life sciences, Alan Dorling (pictured) says shipments moved annually have reached 35,000, a far cry from the 400-500 it was moving in 2006 when it was started. The carrier’s CC product has seen consistent double-digit volume growth year-on-year as it taps into the opportunities pharma presents as global pharma sales passed the $1 trillion mark and are set to reach $1.3 trillion by 2018. Dorling says: “From a business perspective it has been a very successful sector of premium products to get into. We have seen substantial growth since we started it. “We came into it when things were changing in the pharma sector of cargo. Pharma models changed from single manufacturer sites to global sites and in terms of air cargo - CC was playing into that opportunity.” He says the product was launched in 2006 when there was bird flu crisis across Asia and Europe, and a great need for urgent vaccines and airfreight was the quickest mode. CC provides customers with precision temperature control for pharma and life sciences and Dorling says the three types of shipments driving the sector are insulin for diabetes; critical vaccines for global pandemics; and oncology drugs to treat to cancer sufferers - indeed this was the first shipment IAG moved through Constant Climate. Since the product was launched regulations for the movement of pharma products have tightened considerably, and Dorling says they have made a “big difference” to the roles and responsibilities within the supply chain. He adds: “The biggest impact in the decade was the introduction of the European Union’s GDP in 2013. It became mandatory and fundamentally changed the responsibility. The regulations are pretty tight and we now have 34 sets of regulations. I hope we see a consolidation of one or two regulations.” He also notes the
US will issue new regulations within the year. IAG develops their business model around the regulations and now has 36 staff in its CC team, who have a mixture of pharma skills and cargo skills, which Dorling says is a “blending of experts together”.
IAG has 110 CC stations and Dorling says it now believes it is close to reaching an optimum global network for pharma. He says IAG is strict about opening stations and only does so after detailed analysis and assessment of the market. Dorling says: “If there is pharma demand in a region that needs developing then we will develop it into a CC station. We also do lots of one-off projects such as in Africa.” He feels pharma growth in future will come from the Asian and Latin America (LATAM) regions, while IAG has seen rising demand into Mexico, where there is a high diabetes rate. Dorling also believes LATAM, where it brought its number of stations to 18 by opening two new stations in December, is likely to challenge India for producing cheaper drugs. And Dorling says CC will remain at the top of IAG’s investment plans: “As it is a growth market we will continue to invest in our people infrastructure to meet that market as it is not something you want to fall the behind the curve with. IAG will continue to invest in network stations as that has been the backbone of our strategy.”
Turkish Cargo awarded CEIV in Istanbul
THE Istanbul hub of Turkish Cargo has gained the International Air Transport Association’s Center of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma) certificate for the airline itself and its cargo operations. Turkish Cargo says CEIV crowns its “success in all processes of the air transportation of healthcare products”. The carrier says the amount of pharma and similar products are growing every year and it is not only trying to increase its market share, but is also aware of the importance of human health, considers the producers’ concerns, and adopts this approach in all processes of shipments. Cargo handled includes pharmaceuticals, vaccines, biotechnological products, diagnostic samples, precision healthcare devices, organs, tissues and others. At Istanbul Ataturk, Turkish Cargo has a 3,000 square metre special storage areas covering four different temperature ranges (from -20 °C to +25 °C) in an indoor area of 43,000 square metre area, across 71,000 square metres. Products are stored in a 1,030 square metre area. Temperatures are monitored with a telemetry system, and cargo movements are tracked with COMIS, Turkish Cargo’s IT software in real time. Turkish Cargo is also planning to commission the ‘Thermal Dolly’ service and using it for temperature and time-critical consignments soon.
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NEWSWEEK
Oded Lavee
Justin Burns, ACW: Is air cargo behind other modes in terms of the use of technology? Lavee: In some aspects, yes. In our experience many air cargo handling stations still operate processes that are fully or partly manual, heavily paper-based or use legacy or multiple systems far from being the best fit for operations or individual needs. Some are still using very old equipment and others do not have strong in-house technical skills. Some warehouses use a group of loosely coupled systems in order to cover related operations
Seconds with Oded Lavee
Hermes Logistics Technologies is at the forefront of providing technology to air cargo handlers, and is live in 70 cargo stations. Their products are used by the likes of Etihad Cargo, Fraport Cargo Services, Menzies, LUG and PACTL. Air Cargo Week got the thoughts of the company’s chief officer for technology, Oded Lavee.
that could be done solely by Hermes. Most of our customers do not use even 70 per cent of what is available within our cargo management systems (CMS). At Hermes we like to be a few steps ahead and include a number of different functionalities which are waiting within the system for when the customer decides to use them. Warehouse management is ideally suited for technology integrated with RFID, IoT, automatic (robotic) build up, in house GPS, but the industry is slow to take up these innovations.
Warehouse operators must consider cost effectiveness before deciding whether to embrace a new technology.
Justin Burns, ACW: Is the market tough to work with? Lavee: The air cargo handling side of airport operations is often seen as more conservative and in many places the scale of the business is smaller, which results in tighter margins and lower investment opportunities. Often the cargo handler feels like they are being squeezed by expectations of airlines and freight forwarders and it is often only technological advances that can take an operation forward with regards to process improvements, and service delivery. Hermes believes acquisition of a quality, process-driven integrated CMS is the most important investment a cargo handler can make. Justin Burns, ACW: What challenges and opportunities are there in upgrading technology? Lavee: Cost effectiveness is the main challenge. You can try to bring the best technology to a warehouse but when the cargo handler analyses the cost there must be a concrete and obvious ROI (return on investment). The ROI is not always visible and sometimes the investment is deemed as not justified. Often the route to getting modern systems and technology into operations that have been the same for a long time is to make the discussion about the core operational business and not the technology itself. Hermes takes pride in being able to discuss cargo operations in the same ‘language’ as its customers and part of this is explaining complex technological ideas in a way a warehouse employee or forklift operator can understand, get behind and enjoy. This approach often results in a ‘change from within’ atmosphere where users internally demand upgrades. Justin Burns, ACW: What is the future of cargo technology? Lavee: In today’s world where everything is digitised and easily accessed no business can afford to neglect technology, especially when it comes to complicated, 24/7, integrated CMS’. With growing competition within the industry different CMS providers are focusing on different aspects of technology, functionality and innovation. We focus on translating the latest technologies into best practice and powerful end user tools. We investigate lots of new technologies, challenge industry buzzwords and look at real world ways operations can benefit from them. We believe new functionality does not necessarily need to be reliant completely on a tangible technology; it can simply be a tool that allows a good idea to be implemented quickly and safely. We believe automation and digitalisation will continue to penetrate into the industry, utilising more new standards and embracing new trends like IT and better application of big data. Imagine a cargo handling world where a ULD ‘knows’ it’s a ULD, a location ‘knows’ it’s a location, a door ‘knows’ it’s a door and a truck ‘knows’ it’s a truck; the opportunities are almost endless.
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Justin Burns, ACW: What is the latest technology Hermes is offering? Lavee: We have introduced a new ‘work order’ tool, allowing the Hermes system administrator to create their own, bespoke hand-held processes to cater to a specific local business process. These ‘work orders’ are created by compiling logical elements using a set of pre-defined ‘building blocks’ and as a result the warehouse paperwork has been replaced by driven tasks and data recorded on the handheld device, in real-time with an audit trail and integration with operational processes. We have introduced an application called Hermes Business Intelligence (HBI), allowing customers to explore the factors directly affecting operations. From workload trends to SLA performance indicators and yield analysis to process auditing views, HBI informs accurate decision-making.
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