ACW 4th February 19 by Azura International

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The weekly newspaper for air cargo professionals No. 1,017

4 February 2019

German airfreight confident in 2019

ECS goes on holiday New TCE division helps secure deal

aris-based ECS Group has secured a Total Cargo Management contract with leisure airline TUI that will see it selling capacity to and from some of the world’s most popular leisure destinations. TUI airline supports holidaymakers enjoying tourism activities organised by the TUI Group, the world’s number one tourism group. ECS Group will sell across a mix of short-haul and long-haul routes, says Adrien Thominet, CEO of ECS Group. Currently, TUI serves 75 countries with 3,300 weekly flights utilising 150 aircraft.

Life is a beach

Thominet says: “This is a massive win for ECS Group. This is one of the most exciting contracts we have. TUI is actually five airlines in one. There are TUI airlines in the UK, Holland, Belgium, Germany and Scandinavia.” It is the opportunities presented to sell the long haul destinations, which are more likely to be year-round rather than seasonal, that really excite Thominet.

He says: “We are excited about long-haul services to Mexico (Cancun, pictured), Florida and the Caribbean.” The airline also has long-haul services to Africa and Asia. The airline uses B787s for the long-haul services. “This was a tough one to win,” says Thominet. “It took us six months to secure the contract. One of the great things has been that I am learning about new, smaller airports that ECS Group had not served before.” This reflects the many holiday flights from smaller regional airports used by TUI for holiday flights in the summer. One of the key reasons that TUI chose ECS Group is the new TCE (Total Cargo Expertise). This “new and completely unique structure among GSSAs” integrates every aspect of airlines’ cargo activities. The division, staffed by five people, is also involved in auditing safety of all cargo operations undertaken by ECS Group for its clients. He believes that by bringing together cargo experts under one roof at TCE, the ECS Group has already secured a march on its rivals. “I seriously consider we are the only GSSA that offers a service such as TCE.”

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INSIDE FASTER E-COMMERCE IMPORTS

MIAMI International Airport and the Brazilian Post Office have launched Compra Fora, an expedited shipping service to speed up e-commerce ... PAGE 3

TIACA HALL OF FAME OPEN

TIACA is now accepting nominations for its annual Hall of Fame, which recognises individuals who have made a huge difference to the global ... PAGE 4 CEVA REJECTS CMA TAKEOVER

THE board of directors at CEVA Logistics has rejected a takeover bid from CMA CGM, saying the offer of CHF30 per share is too low ... PAGE 5

WAREHOUSE SMELLS OF ROSES

WITH around 2,500 tonnes of flowers being transported every year, IAG Cargo has the right facilities and infrastructure to ensure these ... PAGE 10

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LATAM Cargo upgrades Guarulhos hub

ATAM Cargo Brazil is upgrading its perishable services with the construction of a cooler facility at Sao Paulo’s Guarulhos airport, significantly increasing capacity. The perishables hub will be able to store 33% more perishable cargo than the existing hub, covering 1636 sq m, of which 824 sq m will be coolers. The facility will include two areas, one storage cooler of 487 sq m set at 0-2C and the other 337 sq m at 2-12C for storage and re-palletising purposes. The system has the capacity to increase the temperature up to 25C in case there is a specific perishable that request a different temperature range. LATAM Cargo says it will be able to fulfil the needs of the main perishable products exported by the region including salmon, asparagus, mangoes, cherries, berries, southern hake and flowers. Andres Bianchi, CEO of LATAM Cargo says: “Building a new cooler facility focused on connecting perishable traffic in our main hub enables us to boost our strategic position. We can now offer our perishable customers a growing number of O-D pairs while maintaining the high quality standards associated with our value proposition.” LATAM Cargo says the facility will be able to reduce the time

! e g a P t n o r F Hold the

No horsing around at Cargolux

This week, we look back to our 500th issue

Vol 11: Issue 47

24 November 2008

his week, over a decade ago, saw Air Cargo Week mark its 500th issue with the ironic headline: ‘Famous last words: It won’t last six issues’. Editor Ian Martin Jones, by then the longest serving editor, took a keen pleasure in repeating the words of a naysayer 10 years before that the newspaper would not last. In 2018 the newspaper saw its 1,000th edition under the editorship of James Graham. In the lead story, Boeing confirmed that it had adjusted the timeframe for the delivery of its new-generation, 120-tonne capacity B747-8 Freighter. Initial deliveries were now expected to move from late 2009 to the third quarter of 2010. The first passenger versions would not be delivered until 2011. In the second story, Virgin Atlantic Cargo appointed Australian air Express (AaE) as its cargo handling provider in Sydney, effective the following month. The British airline operated daily A340600 flights between Sydney and London via Hong Kong .

Quote of the week

“Definitely in the late 1980s it was a man’s world.” ATC Germany’s Ingo Zimmer on how the airfreight workplace has changed in 30 years.

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CARGOLUX Airlines International handled a record number of live animals in 2018, with its CV alive service experiencing 15.7% growth. The number of horses increased most significantly, surging by 30% from 2,000 in 2017 to 2,600 in 2018. Horses represent 50% of the total number of live animals Cargolux handles annually, and the airline offers services including HMC horse stalls to provide greater stability with a double layer pallet base to reduce the motion feeling for the horses. Cargolux’s Boeing 747 Freighters are also equipped with multizone air conditioning systems that can be adapted to suit any animal’s environment throughout the flight. Christian Theis, global product manager for CV alive at Cargolux says: “Cargolux is proud to have recorded such a significant increase in animal transportation. It is an important part of our business, and we have made a number of investments over the years to ensure a top-of-the-range transport solution.”

cargo is exposed, since the re-palletising process will be done under a temperature-controlled environment and all the cargo will be stored at the same location. More than 45% of LATAM Cargo’s volumes are perishable shipments and 14% or 24,000 tonnes transit through Guarulhos. Claudio Torres, South America commercial vice president of LATAM Cargo says: “We are very excited to share this investment with our customers as it will greatly benefit them by providing a more robust alternative to continue expanding the perishable exports’ volume from Latin America to the world.”

AA Cargo are billionaires

AMERICAN Airlines Cargo broke multiple performance, volume and revenue records in 2018, finishing the year with more than $1 billion in revenue for the first time in history. The airline moved record volumes of freight and mail in 2018, handling two billion pounds, as well as achieving history-breaking Flown as Booked numbers. New routes, strategic capacity planning and team work across the organisation led to the best annual performance numbers recorded in the airline’s history. Rick Elieson, president of American Airlines Cargo says: “We’ve had an incredible year. We set out to break records and did just that. We achieved a major revenue milestone, but more importantly, our teams handled record volume and still delivered the best operational performance in the history of our company. Thanks to the daily effort of every single team member in this organisation, 2018 was definitely a historic year.” American Airlines Cargo will connect Dublin with Dallas Fort Worth for the first time, with seasonal flights from 7 June to 28 September using a Boeing 787-9. Customers with a range of commodities have expressed an interest in the flights, covering the computer parts, medical devices, machinery, oil industry equipment, aviation parts and pharmaceutical industries. In Ireland, long-standing general sales agent International Airline Marketing will continue to represent American Airlines. In addition to the Dublin – Dallas flights, American Airlines offers services from Dublin to Charlotte, Chicago O’Hare and Philadelphia, as well as seasonal Shannon – Philadelphia services.

B&H creates new role for Allen CHRIS Allen will fill the newly created role of business development manager at aerospace logistics provider B&H Worldwide. He will be based in Singapore at the B&H facility within the ALPS Free Trade Zone at Changi Airport, and will be responsible for identifying opportunities for the company to grow its products and services across Asia. Allen has worked in operational, business development and customer solutions roles, and served as station manager in Dubai. For the last six years Allen has been based at the company’s London Heathrow headquarters where was a key customer solutions manager. Seth Profit, group sales director at B&H Worldwide says: “We are delighted that Chris has accepted this new role to lead the further development of our business across Asia. His in-depth knowledge of our worldwide operations and customer first mentality will enable us to expand our brand plus meet our growth initiatives in the Asian market.”

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Groth to leave West Atlantic FREDRIK Groth is standing down as CEO of West Atlantic with immediate effect, to be replaced by Lars Jordahn. West Atlantic says that under Groth’s leadership, the company has expanded significantly with revenue increasing by almost 50% while expanding its fleet, including the Boeing 737-800 Next Generation Freighter. It says the growth came at the expense of high costs, adding to high debts. The company says it is entering a new phase, where it will on reduction of leverage and improved profitability, and a new CEO should lead the process. Jordahn has a long career in aviation, with positions at airlines including Amapola, DHL Aviation and TNT Airways. He has been involved at West Atlantic as a consultant and board member. Goran Berglund, chairman of the board says: “The decision for a change of chief executive has been mutual and the board wishes to extend its gratitude to Mr. Groth for his valuable contribution to the Group during his three years in office.” Groth will remain with the company in an advisory role during the transition period.

MIA speeds up e-commerce imports

iami International Airport and the Brazilian Post Office have launched Compra Fora, an expedited shipping service to speed up e-commerce imports. The launch of Compra Fora (Buy Outside) by the airport and Correios, the Brazilian Post Office, to allow e-commerce packages to be shipped to Miami, pre-cleared by Correios and arrive in Brazil as domestic cargo within days instead of weeks or months. Correios chose Miami as its first Compra Fora partner because the airport ranks first in the US for cargo flights to Brazil and commands 38% of the entire Miami-Brazil air trade market, with $12 billion in cargo shipments annually. Carlos Gimenez (pictured at the announcement in Brasilia, Brazil), Miami-Dade County mayor says: “This landmark agreement with Correios once again reinforces Miami-Dade County’s role as the logistics leader in our hemisphere. I applaud the efforts of MIA and our trade community, for keeping Miami-Dade County on the forefront of innovation within the global air cargo industry.” Through a joint venture between Miami-based logistics providers SinerlogUSA and Interport Logistics, items purchased by registered Compra Fora customers in Brazil are stored at Interport’s facility within Miami-Dade County’s Foreign Trade Zone, before being inspected, pre-cleared and shipped from Miami with a Correios label. The shipments can arrive in Brazil as domestic cargo and be trans-

MOSCOW Sheremetyevo International Airport handled more than 300,000 tonnes of cargo in 2018, growing 5.5% over 2017. The increase in cargo was due to international volumes increasing 7% to 220,000 tonnes, helped by strong imports. The largest increases in outbound and transit traffic was on routes to Liege, Leipzig, Chengdu and Taiwan, with strong inbound and transit traffic on routes from Tokyo Narita, Chongqing, Zhengzhou and Seoul.

ported to their final destinations via Correios’ logistics network. Lester Sola, director and CEO of Miami International Airport says: “Compra Fora is the latest collaborative effort we’ve engaged in to streamline and expedite the shipping process across our global cargo network. The Brazilian Government has designated MIA as the only US airport able to pre-clear e-commerce bound to Brazil. We expect that our new partnership with Correios will spur increased trade and commerce between Miami-Dade County and Brazil, the leading economy and e-commerce market in Latin America.”

Peli BioThermal comes to Los Angeles

CargoLogic joins BARIG CARGOLOGIC Germany has joined the Board of Airline Representatives in Germany (BARIG), the Frankfurt-based association representing airline interests. The airline was registered last year as a company name and applied to the German Federal Aviation Authority for an operating permit and Air Operator Certificate. Its home base is Leipzig/Halle Airport, operating with a fleet of three Boeing 737s, serving destinations in Europe and beyond as soon as the operating licence is granted by the German Federal Aviation Authority. Michael Hoppe, secretary general of BARIG says: “Air cargo and logistics topics are traditionally an important aspect of BARIG’s association work and have further gained momentum in the past few years. We are therefore happy to welcome CargoLogic Germany, who will also be part of our Cargo Committee, as new player with possibly new business approaches in our industry.” Ulrich Ogiermann, managing director of CargoLogic Germany says: “CargoLogic Germany will operate in the express freight sector. For this reason, the competent representation through BARIG in many important issues related to air cargo as well as further advantages offered by the membership are of special interest to us.”

PELI BioThermal has opened a network station and service centre in Los Angeles to service, refurbish, repair and condition Credo on Demand shippers. The Los Angeles station is located near two of the world’s busiest international seaports and airports – the Port of Long Beach and Los Angeles International Airport. The Port of Long Beach is the second-busiest port in the US and trade from East Asia makes up more than 90% of the port’s shipments, while Los Angeles is the busiest airport for cargo shipments on the West Coast. California is also home to 1,570 biotech and pharmaceutical companies according to the 2019 California Life Science report by PwC and the California Life Sciences Association. Dominic Hyde, vice president of Credo on Demand says: “Los Angeles is a major logistics hub for sea and air carriers as well as a hot spot for pharmaceutical innovation. As we continue to expand our Credo on Demand rental program, the LA network station and service centre puts customers in Asia and elsewhere in the world in closer proximity to more convenient and flexible shipping options.” The Los Angeles station is staffed by a team of Peli BioThermal experts and the facility will focus on Credo on Demand shippers, which provide flexible rental options for temperature controlled containers such as Credo Cargo, Credo Xtreme and Credo Cube.

Corendon lets you experience the 747 at Schiphol TRAVEL agency, airline company and hotelier Corendon is having an ex-KLM Boeing 747-400 transported to the Corendon Village Hotel in Amsterdam, to be placed in the hotel garden. Specialised transport company Mammoet will transport the aircraft in five days from Amsterdam Airport Schiphol, starting on the evening of Tuesday 5 February. During its journey, the aircraft has to cross 17 ditches, highway A9 and one provincial road. The 747, ‘City of Bangkok’ had served KLM for 30 years and has been stripped of all serviceable parts such as the engines. It was painted in Corendon colours and will be converted into the Corendon Boeing 747 Experience, which will open its doors in the third quarter of 2019. The aircraft will roll on one of Mammoet’s self-propelled trailer at 11pm on 5 February, leaving the airport via Zwanenburgbaan and be transported over the meadows towards the Sloterweg where it will stay for two days.

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On the night of 8 February, the 747 will cross the A9 highway and on the night of 9 February, it will cross the Schipholweg and make 57 traffic movements before taking its place in the garden of the Corendon Village Hotel.

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AIRFREIGHT volumes at Singapore Changi Airport grew by 1.4% in 2018 despite demand slowing down at the end of the year. The airport handled 2.15 million tonnes in 2018, with growth in all segments – exports, imports and transhipments. For the year, the top airfreight markets were China, Australia, Hong Kong, the US and India. The strong annual growth came despite volumes in December falling by 3.8% to 182,000 tonnes, which had followed a negative month in November, when airfreight was down 1.3% year-on-year to 189,000 tonnes. SWEDAVIA has appointed Anna Stromwall as the new airport director of Goteborg Landvetter Airport and as a new member of Swedavia’s Group management team. Stromwall works as the head of the group’s consultancy unit, Swedavia Consult and has years of management experience in the transport and logistics service, including planning manager at Scandinavia’s largest container port APM Terminals, and head of security screening at Stockholm Arlanda. She succeeds Charlotte Ljunggren, who is taking up the role of director for markets and commercial development for Swedavia, and will stay on as a member of Swedavia Group’s management team. BRIAN Gallagher has joined Cork Airport in Ireland as the head of aviation business development, taking responsibility for liaising with airline customers in helping establish new routes and increase the airport’s network. Gallagher has worked for airport operator daa in multiple roles for seven years. He joins from his most recent post as airline business development manager at Dublin Airport. EVA Soley Gudbjornsdottir has been appointed chief financial officer of Icelandair Group, succeeding Bogi Nils Bogason who was appointed company chief executive officer in December 2018. Gudbjornsdottir has extensive experience of management, operations and finance in Iceland and internationally and will start working for Icelandair Group in mid-February, and will become a member of the executive committee. RUNWAY 03-21 and connecting taxiways have been officially reopened at Charlottetown Airport on Prince Edward Island by member of parliament for Charlottetown, Sean Casey. The government of Canada invested C$8.1 million into the rehabilitation of the runway and taxiways, with work including grading and draining improvements, replacement of storm water collection infrastructure, and rehabilitation and reconstruction of the pavement structure. FEDEX Corp’s president and chief operating officer, David Bronczek has been elected to the company’s board of directors. Bronczek is responsible for all FedEx operating companies and is a member of the five-person executive committee. He is also co-president and co-CEO of FedEx Services, which provides sales, marketing, information technology, communications, customer service and other support functions for US customers of major FedEx business units. DELTA Air Lines’ first Airbus A330-900neo has left the paint shop in Toulouse, France. The aircraft is just waiting for its engines, which will be painted separately and mounted at a later date. The aircraft will take to the skies for testing before being delivered to Delta later this year.

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TIACA Hall of Fame open for nominations

IACA is now accepting nominations for its annual Hall of Fame, which recognises individuals who have made a huge difference to the global air cargo community. The winning candidate will be celebrated at a gala event at the Association’s forthcoming Executive Summit in fall 2019, joining a long list of industry stalwarts from around the world. “Since launching our Hall of Fame in 1997, we have recognised dozens of professionals who have played a pivotal role in the progress of aviation and helped to shape the industry as it is today,” said Vladimir Zubkov, secretary general, TIACA. “We encourage our members, as well as organisations and the press to put forward individuals they believe are deserving for consideration of this accolade.” Inductees into the Hall of Fame are chosen by TIACA’s Chairman’s Council, which includes all past chairmen and the association’s current chairman. Last year, Chris Leach, who founded global charter company Air Charter Service Ltd more than 30 years ago and oversaw its development into a multinational business, was inducted into the

Hall of Fame at the 2018 Air Cargo Forum in Toronto, Canada. Other past winners of the annual event include Desmond Vertannes, an acknowledged air cargo leader known for initiating change and innovating; and James ‘Jim’ Jackson, a driving force behind the standardisation of Aircraft Unit Load Devices (ULD). To make a nomination, contact secgen@tiaca.org

AAPA: Strong year despite significant slowdown CARGO demand experienced strong growth across Asia Pacific in 2018 but slowed down significantly at the end of the year, the Association of Asia Pacific Airlines (AAPA) reports. Demand measured in freight tonne kilometres (FTK) was up 3.9% in 2018 to 73.2 billion, but was down 0.7% in December to 6.3 billion due to slower exports and increasing uncertainty over international trade policies. Capacity in available FTK was up 6.6% in 2018 to 115.7 billion and by 5.1% in December to 10.2 billion, pushing load factors for the year down 1.6 percentage points to 63.3% and by 3.6 percentage points to 62.1% in December. Andrew Herdman, AAPA director general says: “Whilst international air cargo demand recorded an encouraging 3.9% increase for the full year, growth slowed significantly in the closing months of the year as business confidence in the global manufacturing sector weakened in response to trade policy tensions.”

Volga-Dnepr upgrades the internet PACT Pilot a success for CHAMP VOLGA-DNEPR Airlines has successfully completed the first delivery of satellites for OneWeb constellation project to enhance global internet coverage. In cooperation with its partner Bollore Logistics, one of the airline’s AN-124-100s delivered six satellites from their manufacturing facility in Toulouse, France to Cayenne in French Guiana. The satellites were transported in two special containers with an overall payload of around 30 tonnes. Volga-Dnepr organised a direct charter flight to French Guiana, with OneWeb’s equipment being delivered to its final destination in Kourou. The first satellite launch is scheduled for the middle of February, with the satellites operating in the near-polar, 1,200 kilometre LEO orbit. Axel Kalschmidt, global director aerospace of Volga-Dnepr Group says: “As an air cargo oper-

ator, we understand all too well how important stable internet access is, with customers relying on real-time cargo shipment data, airline specialists communicating through internet systems to guarantee cost-effective and timely deliveries, and innovative technologies being facilitated through the development of internet solutions. We are, therefore, especially honoured to be part of the OneWeb constellation project, which will enhance the quality of life for customers globally.”

Major mining mission for Antonov

ANTONOV Airlines has used one of its AN124-100s to transport mining equipment from the UK to Gabon in just nine days for Bollore Logistics. The cargo flew from East Midlands Airport to Franceville Airport, facilitated by in-house Antonov Airlines loading technology. To guarantee precision and efficiency, ground staff at East Midlands Airport used Antonov’s purpose built ramp positioned at an angle of only three degrees to load two tracked crushing

machines, and the entire process was completed using remote control. Paul Bingley, commercial manager of Antonov Airlines says: “The project turn-around was only nine days and in that timeframe, we managed to deliver a cost-effective solution by securing special permission for landing in Gabon’s second city, Franceville.” The combined weight of the two machines was nearly 70 tonnes, and precision was vital during the loading process. Chris Grigentin, director of industrial projects France at Bollore Logistics says: “We only required one flight for this project as the hold length of the AN-124-100 measures in at just over 36m, making it the perfect fit for two vehicles which are 18.68m in length.” Air Charter Service was involved in the organisation of the mission.

14 years of growth at Leipzig/Halle

FREIGHT volumes at Leipzig/Halle Airport have grown for the 14th year in succession, driven by DHL’s express services, as well as charter flights. In 2018, Europe’s fifth largest cargo hub handled 1.2 million tonnes of airfreight, representing growth of 7.3% over the previous year. The continued growth has been praised by Saxony’s economic affairs and transport minister, Martin Dulig who says: “We want to

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continue this success story with more international cooperation arrangements and continue to strengthen Saxony as a business centre.” He adds: “The agreement with Hanoi Airport, which was signed recently during my trip to Vietnam, is designed to open up new doors in south-east Asia. Vietnam is one of the dynamically developing markets for e-commerce trade and logistics alongside China and is also gener-

CHAMP Cargosystems and Icelandair Cargo have successfully participated in Transport Canada’s PACT Pilot to assess shipments for security risks. The Pre-Load Air Cargo Targeting (PACT) Pilot is a pre-load advance cargo information (PLACI) regulation pilot involving air carriers submitting shipment information prior to loading, in a similar manner to US Customs and Border Protections’ Air Cargo Advance Screening (ACAS) program. Nicholas Xenocostas, vice president – commercial and customer engagement at CHAMP Cargosystems says: “Compliance and security will continue to grow in importance in the supply chain. CHAMP is proud to be a part of the PACT pilot. We are delighted that our long-time customer Icelandair Cargo could be an integral part of it.” The pilot used CHAMP TGS platform, which operates in a similar way to its TRAXON Global Customs (TGC) service for pre-arrival filing for

customs Advance Cargo Information schemes, and supports multiple PLACI schemes. Bertel Olafsson, cargo systems manager at Icelandair Cargo says: “It is a natural progression to work with CHAMP Cargosystems in the PACT pilot. Having already implemented TGS for the respective PLACI scheme in the United States “ACAS”, we know from experience that our security compliance is in good hands with such a user-friendly solution.”

ACC3 EU certificate for Checkport SWISSPORT International subsidiary, Checkport has become the first and only Swiss company to obtain the IATA Independent ACC3 EU Validator certification. ACC3 stands for ‘Air Cargo or Mail Carrier operating into the Union from a Third Country Airport’, a designation required in order for carriers to fly cargo into or through the European Union, Switzerland, Norway or Iceland. Since July 2014, most carrier stations in third countries have been required to undergo an audit to obtain an EU Aviation Security Validation to acquire or maintain their ACC3 designation. Checkport is the first Swiss company in the EU database to be listed as an Independent ACC3 EU Validator, allowing it to carry out validations for airlines, logistics companies as well as production companies. Daniel Steffen, CEO of Checkport Switzerland

ating a constantly increasing source of goods and products.” Gotz Ahmelmann, Mitteldeutsche Flughafen CEO and chairman of the boards at Leipzig/Halle and Dresden Airports adds: “With an increase of more than seven percent, Leipzig/Halle Airport significantly exceeded the German average figure for volumes of air freight in 2018. Overall, the airport handled more than 1.2 million tonnes of cargo – more than ever before in one year. This growth is particularly based on DHL’s express

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says: “We are very proud to complete our overall Cargo security competence with the ACC3 certification.” In order to obtain the ACC3 status, an air carrier needs to submit it relevant air cargo security programme to an Independent ACC3 EU Security Validator. After verification of the security programme through Checkport, an onsite inspection will take place, and a report will be generated and provided to the appropriate authority of an EU member state, including Switzerland, Norway and Iceland.

freight business. However, the cargo and special charter services also continued to develop far above average.”

CEVA board rejects CMA CGM takeover bid

he board of directors at CEVA Logistics has rejected a takeover bid from CMA CGM, saying the offer of 30 Swiss francs per share is too low. The French shipping group announced a public tender offer for all publicly-held registered shares of CEVA Logistics with a nominal value of CHF 0.1 each on 26 November 2018. On 28 January, CMA CGM published a prospectus for the public tender offer on CEVA shares with an offer of CHF 30 per share, but the board concluded that due to a revised business plan, the price of CHF 40 would be more suitable. The board of directors at CEVA concluded that the offer of CHF 30 is “reasonable from a financial perspective” and the offer provides “a fair exit opportunity for shareholders who wish to

receive cash for their CEVA shares”. It recommends shareholders could realise a higher value with their continuing investment due to the growth potential of CEVA’s business, the effects of the acquisition of the freight management business of CMA CGM and the strategic partnership between CEVA and CMA CGM. The key financial highlights of the business plan are CEVA’s 2021 revenue target exceeding $9 billion, stronger footprint in ocean freight management, expected EBITDA of $470-490 million in 2021, and an intensified business relationship with CMA CGM “while keeping an arm’s length relationship”. Rolf Watter, chairman of the board of CEVA says: “The board of directors, with the support of independent external advisors

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challenged the new business plan, has validated it and fully trusts CEVA’s management team in its capability to successfully execute the plan. For those reasons, management and the Board will not tender the shares and do not recommend shareholders to tender either.” Xavier Urbain, CEO of CEVA says: “I am proud to be putting the whole organisation on track to accelerate our transformation and turnaround action plan in the next three years and beyond. “This can be achieved by a combination of our commercial and sales focus, cross selling with CMA CGM customers, our own productivity actions, the integration of CMA CGM Logistics within CEVA and sharing resources with CMA CGM in the field of non-strategic procurement and administrative functions.”

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ACWBITES

EL PAIS newspaper in Spain and CNN are reporting that officials at Adolfo Suárez-Madrid Barajas airport are trying to locate the owner of an abandoned 1990built McDonnell Douglas MD-87, once owned by Saicus Aircargo airline, that has been taking up costly space at the facility for years after being abandoned. DESCARTES will acquire Visual Compliance for $250 million. Visual Compliance is a software company that automates customs, trade and fiscal compliance processes, with a particular focus on denied and restricted party screening processes. CHONGQING Municipality in southwest China is set launch 10 new international air routes this year to join existing air cargo routes connecting the city with Frankfurt, Amsterdam, Chicago and Sydney.

GEFCO opens Mission Control Centre

EFCO has launched a dedicated Mission Control Centre (MCC) in Amsterdam to manage global Time Critical Solutions (TCS) within its freight forwarding business line. The centre provides 24/7 services, supporting its dedicated TCS network teams alongside nominated partner agents across the globe. The freight forwarding division manages a global network of time critical operators and works with customers at a localised level to provide both planned and unplanned emergency shipments The TCS services are designed to provide immediate responses to customers’ urgent delivery requirements, offering time critical airfreight solutions with full visibility. The MCC will act as a single point of contact for global customers to provide real-time monitoring updates on their worldwide emergency

shipments. Klaas Sybrandy, global TCS director at GEFCO Freight Forwarding says: “This is a momentous occasion for our rapidly growing Freight Forwarding operation. The Mission Control Centre significantly enhances our credentials in the time critical solutions arena. With all time critical shipments being monitored closely by our excellent and experienced MCC team, we will

ensure that we always find the fastest possible solution for all planned and unplanned emergency shipments for our customers.” The MCC team will be led by Vincent Karbet, who has worked in international freight forwarding for over 15 years including executive roles with DHL Same Day, and Chantal van Loen, who was responsible for TNT special services in the Netherlands for over 10 years.

PANALPINA is updating its Charter Network with the website aircharter.panalpina.com to provide an up-to-date overview of scheduled cargo flights and cargo aircraft available for chartering around the world. The charter tool focuses on user-experience with a design featuring drag-and-drop origin and destination functionality, aircraft availability by geography and routes, types of aircraft and more. Lucas Kuehner, global head of airfreight at Panalpina says: “Especially during seasons with high and ad-hoc demand or in case of emergencies, customers can rely on the charter tool. The semi-annual retendering of our subcontractors and respective framework agreements keep the Charter Network up-to-date and agile, ensuring that Panalpina can always provide a reliable and secure transport across the globe at any given time.” Panalpina says finding an ad-hoc charter flight is easy, with customers selecting the start and destination airports and then the earliest pick-up

and latest delivery dates. With information about weight and height of the cargo, the tool suggests the most suitable charter solutions. Kuehner says: “The Panalpina Charter Network is ideal for the handling of special cargo such as pharmaceuticals and medical equipment, microchips, oversized oil and gas equipment, helicopters, cars, radioactive and explosive cargo as well as high-value goods.”

New tool for Panalpina charters

JAS works with cargo.one for spot rates JAS Forwarding will work closely with online booking platform cargo.one to book airfreight capacity using dynamic spot rates. The cargo.one platform provides JAS Forwarding service teams with real-time access to the freight capacity of several airlines, allowing them to compare routes and replacing the manual adhoc pricing processes. Gordon Reinke, airfreight director Germany at JAS Forwarding says: “We tested the cargo.one platform extensively and were always in close contact with the teams on both sides. The joint product development convinced us that the cargo.one software would help us optimise our

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processes. Booking processes are significantly accelerated and the current spot rates allow us to always offer our customers the best options.” Oliver Neumann, co-founder of cargo.one says: “The air freight industry is still largely analogous and offers great potential for optimisation and faster processes. That’s exactly what we can offer with cargo.one. JAS Forwarding recognised this early on and we are pleased to be supporting a leading logistics service provider in the digitisation process.” The companies say the focus of the collaboration is to digitalise airfreight pricing, booking and tracking of shipments.

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Have you voted yet?

oting is now underway for the ACW World Air Cargo Awards 2019. Voting is secure, confidential and restricted to readers of Air Cargo Week and ACWDigital, plus other bona fide members of the worldwide air logistics community. All votes must be cast online using the official voting form on the website. Categories are - Airfreight Forwarder of the Year 2019; Air Cargo Handling Agent of the Year 2019; Air Cargo Charter Broker of the Year 2019; Airport of the Year 2019; Air Cargo GSA of the Year 2019; Air Cargo Industry Customer Care Award 2019; Air Cargo Industry Achievement Award 2019; IT for the Air Cargo Industry Award 2019; Air Cargo Industry Marketing & Promotional Campaign Award 2019; Cargo Airline of the Year 2019. Voting closes on Tuesday 30 April, 2019 www.aircargoweek.com/awards-voting/

Gazoo Racing drive to Dakar glory

oyota Gazoo Racing South Africa has won the prestigious Dakar Rally 2019, having had their cars and spare parts transported by South African Airways Cargo. The two cars, weighing about two tonnes, were seamlessly transported along with spare parts to Sao Paulo, Brazil en route to Lima, Peru by SAA Cargo. Each car takes about three hours to disassemble and about six hours to reassemble, and were designed in line with size restrictions for commercial cargo holds. They were built in such a way that they could be disassembled to the size of a cargo pallet and container to be used. The race took place from 6 to 17 January across 10 long and gruelling stages in southern Peru, and tests vehicle durability, driver endurance and technical ability to the limit.

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The car driven by Nasser Al Attiyah and navigator Mathieu Baumel won the event, with Giniel de Villiers and Dirk von Zitzewitz coming ninth. Glyn Hall, team principal of Toyota Gazoo Racing South Africa says: “Winning the Dakar Rally has been our goal from the start. Now that we’ve achieved that goal, it is clear that South African technology and design is not only good enough to compete at the highest levels, but also to win.” Justice Luthuli, acting general manager of SAA Cargo says: “We are elated that Toyota have continued to entrust us with the responsibility to transport their vehicles. We are also very proud of the association with the winning team. “We congratulate Toyota Gazoo Racing South Africa for their outstanding finish at the world’s most gruelling off-road race. The Team has lived up to expectations and represented our country with pride despite the many challenges faced in some of the stages of the race.”

ACW 4 FEBRUARY 2019

GERMANY

hen Swiss-based GSA ATC formed its subsidiary in Germany in Octo man re-unification was still a year in the future while the Berlin Wall ha years to stand. Thirty years later, the Frankfurt-based GSA operation day one by Ingo Zimmer, is a multi-million euro operation. Reflecting on this year’s 30th anniversary of ATC’s founding in Germany, Zimmer’s mind turns not only to how differently airfreight was conducted in the late-1980s but how the wider industry GSA industry in Germany has changed since then. He says: “Of course, in 1989 there were no mobile telephones, no laptops, nor personal computers even. We relied on SITA telex machines. There was no CASS so we had to write out each shipment and bill individually. “We made more sales calls as there was no email. We even did this in our lunch hour I remember.” Another key difference, he notes, is the greater percentage of females working in airfreight. He says: “Definitely in the late 1980s it was a man’s world. Now, that has changed as there are women in senior positions in much of the industry.”

West Germany

That was then: Zimmer 30 years ago at ATC Germany’s start ....

ACW 4 FEBRUARY 2019

Next year will be the 30th anniversary of German re-unification in 1990. The world where Zimmer started up ATC’s operations in Germany was very different both politically and commercially.

He says: “In the late 1980s there was only a handful of GSAs in Germany. Small to medium airlines then worked as ‘embassies’, keeping total control of their passenger and cargo sales. There were no real global GSAs then.” However, following the changes in Germany, this changed in the 1990s when airlines started to divest themselves of what they saw as noncore activities, such as selling cargo space. He also notes that what was being carried by air has undergone a revolution in the three decades since he opened ATC for business in Germany. Then it was very much West German manufactured products, highly sought after in many export markets for their noted quality and engineering superiority. Now, pharma and fresh fruit and vegetables are significant traffics that were not there in 1989. He says: “Another thing that has progressed in 30 years is the hold cargo capacity of modern aircraft. A modern airplane can have the cargo capacity of a small freighter.” With airlines increasingly divesting themselves of non-core activities, GSAs have become the fast-growing segment of the airfreight business, considers Zimmer. At the same time, intra-European airfreight

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has almost disappeared, thanks to expansion of key road feeder service (RFS) networks.

One-man band

Zimmer, who was interviewed in ACW’s popular 60 Seconds with … slot in March 2018, recalls that the early days of ATC in Germany really was a solo effort. He says: “When ATC opened up in Germany, I was alone. I did everything. I made sales calls, followed up with paperwork. I billed and invoiced. I even went to the cargo sheds to supervise loading and warehousing. I was alone until an ATC staff member came from Switzerland.” As a manager, Zimmer is keen to promote loyalty from his staff. The pay back is some staff staying with ATC in Germany for a long time. “I have more than two staff with more than 20 years with me,” he says.

Worst of times, best of times

In a span of 30 years, ATC Germany has naturally experienced the ebb and flow of business fortune. Like many in the industry, Zimmer recalls 2017 as being a “perfect year” for ATC’s business and the wider airfreight industry.

GERMANY

You have to be quick to catch QCS

n October 1989, GerWall had two more eration, headed from The whole air cargo industry had a very strong year in 2017 as ATC benefitted from increasing yields and strong demand, particularly in November and December where there was a lack of capacity with cargo being sold at express rates. Tonnages were also very good that year. Growth out of Europe was around 15% with ATC seeing some 30% growth, a rate approaching double the market. Zimmer considers that ATC was ahead of the market but benefitted like everybody else from increased yields, creating a “fantastic year”. ATC’s good fortune did not stop there. Last year was just as strong as 2017 had been, he says. Growth may have slowed but Zimmer is still pleased with how business went last year. Such positive outcomes go some way to removing memories of two years when things were not so rosy in Zimmer’s Frankfurt back garden. He says: “The worst year has to have been the financial crisis of 2008. I remember going to the cargo sheds and they were empty. There were no trucks delivering or collecting. It was terrible. The second worst time was the ‘ash cloud’ of 2010. I remember walking my dog near the airport and there being no aircraft in the sky.” Looking ahead, perhaps to the 40th anniver-

sary in 2029, Zimmer is confident that ATC has a strong future. The company has a management team who are highly motivated as well as workforce who buys into the ATC message. ATC’s ambition is to be the leading cargo GSSA in the world. Zimmer considers his route to achieving that ambition remains in maintaining the best relationships with client airlines and always providing the services they require. He remains very proud of ATC Germany’s portfolio of airlines and displays a deep attachment to the company and its loyal staff. The wider group sees turnover of €350 million in 22 countries with 42 offices and more than 200 people working within ATC worldwide. Its global portfolio consists of leading cargo airlines like ANA, Avianca, Etihad, Ethiopian, Qatar, United and Turkish. Looking back at the early days, as the rest of Germany changed beyond recognition with the fall of the Berlin Wall and the re-unification, Zimmer remembers a time when he was the sole ATC employee in Germany. “This company was my baby,” he says. “It still is my baby.”

QUICK Cargo Service (QCS) has been working with worldwide airfreight since 1974. This means it has weathered a few economic storms and given it a head for business that allows it to be calm in the face of early signs of a German recession. For Stephan Haltmayer, CEO of QCS, this means that he is not overly concerned. He says: “The order books are full and we expect 2019 to be a moderate year. I don’t think we will see a year like 2017, which was an exceptional year. I personally think we will see a year like 2016, not spectacular but also not a recession. Germany is a very stable market. For the last 10 years we saw annual growth. I think that this growth will slow down this year but we will still be growing. If not 3% but somewhere around 1% - 1.5%.” Despite this optimism, he has observed some softening of German airfreight exports. He says: “The business currently is not booming. Since July 2018 we have seen a downturn mainly with our China business. This was the time the USA put sanctions on China. Again it is at very early stages to really judge the New Year. “From about 28 blocked space pallets we reduced the capacity to half at the moment. Many forwarders were stuck with airline contracts, which could not be fulfilled during the 2018 summer schedule. Many of the forwarders had to pay dead freight, or high rates to which the pallets were initially signed for. At the same time the same carrier you had the hard block on were selling their space for about 40% less to fill up the open space. Up to today the China business has not recovered.

and strategies in 2018.” Amidst speculation that the wider German economy is hesitating, Cismat remains unsure as to how 2019 will evolve. “Concerning our main markets Jordan and Brazil, we will especially have to have on eye on the political situation in Brazil with Bolsonaro now being the president. Some points on his agenda can affect imports from Germany depending on whether he can implement them.” Cismat enjoyed its 10th anniversary last year and currently has a strong team “with a vital mix of experienced staff and young colleagues bringing new ideas” he said.

Dusseldorf-based GSSA Skyline Air Services, like many in the wider airfreight community, found last year did not quite live up to the golden industry performance of 2017. Hassaan Aglan, managing director said: “The expectation had been put very high in 2018 after a fabulous 2017. This expectation was not fulfilled. We had a so-called ‘Normal Season’.” A hard Brexit for the UK will result in shortage of airfreight capacities in the European Union and extreme overcapacities in the UK. The UK market is very much depending on airfreight originating from France, Germany, Benelux, he considers.

And this is now: Zimmer, still in charge ...

Cismat builds on a decade of service

LIKE many in German airfreight, Philipp Gladigau of Frankfurt-based GSA Cismat noticed that Q4 2018 “was considerably more quiet compared to 2017 to South America for us. However, the yields were averaging on a higher level throughout the whole year in general, resulting in the total revenue just being a little short of 2017’s turnover.” Cismat clent Royal Jordanian was running stable with exports to the Middle East ex Germany and Cismat was able to increase tonnage by 20% compared to 2017, said Gladigau who works in marketing. “All in all, we are satisfied with our approach

Closing the gap

QCS has opened another office close to FMO Airport in Gronau. This was a gap on the German map for QCS. “We intend to close the gap between DUS, HAJ and HAM with FMO. We have big potential to grow into this area close to the Dutch border,” says Haltmayer. The German labour market is tight, with good quality staff well looked after by employers. “Salaries went up by 5-10% last year. The forwarding industry is not the most posh job to have. Everybody is looking for manpower in Germany; also the industry who very often offer better social benefits and more holidays. We employ about 45 apprentices who we educate and later offer a future career in QCS. Almost 60% of all QCS staff have learned forwarding in our company and have made their career inhouse. A lot of our former apprentices are today in managerial positions,” he says.

Service returns to normal for Skyline

LUG positive in face of German softening atrik Tschirch, CEO of LUG aircargo handling, has noted that air cargo volumes softened in Germany in 2018 as a result of declining German exports and world economic uncertainties. At Germany’s leading international hub, Frankfurt/Main, volumes declined by 0.7% and totalled 2.2 million tonnes. At Munich airport the reduction was more marked, 2.8%, down to 368,000 tons. “In contrast, airfreight volumes rose by 6% to reach 80,000 tons at Hamburg airport where we have our third cargo handling station,” he says. “I expect that airfreight volumes will stagnate or soften further in Germany in 2019 as the uncertainties around the Brexit and economic developments in the Far East persist. “As far as LUG is concerned I expect more or less stable volumes – a year of consolidation.” LUG is not raising staff levels at the moment but is recruiting nevertheless. He says: “Finding well-trained staff in sufficient numbers and retaining staff in our sector is a big challenge. Unemployment is low in Germany and there is a shortage of labour in many industries, including the airfreight sector. “We are part of the Dettmer Group. Dettmer has its own recruitment company, the Logistic Competence Team GmbH. In

“In the long run, I am very optimistic. Airfreight is a growing market in general. It has it’s up’s and down’s but all over all the market will grow further. Airbus and Boeing have a lot of orders for new freighters. CEO Peter Gerber of LH just gave an interview to the German DVZ newspaper where he states that LH expects the airfreight business to grow by 100% in 20 years. The optimism is there; the question is just who gains the business. The courier companies, the e-commerce providers, the forwarders? If forwarders, is it SME’s or the multinationals.”

addition, we are cooperating closely with regional employment exchanges and job centres and offer training and further qualifications on a continuous basis. New regulations for dangerous goods and increasing security requirements mean that newly employed staff do not become productive immediately. They have to be trained first, for example in building palettes, handling hazardous material or temperature-controlled shipments.” Tschirch notes that e-commerce continues to boom in Germany. The pharmaceutical sector is still strong. The US economy is in good fettle. The Chinese economy is still growing even though at a slower pace. The air cargo-handling sector profits from these trends. “Thus, I am very confident that our long-term prospects are excellent,” he says. The company handled more than 345,000 tonnes of cargo in 2018. It operates 33,000 sq m covered warehousing space with direct ramp access for all types of cargo, including dangerous goods, at Frankfurt airport and some 3,300 sq m at Munich as well as 9,500 sq m at Hamburg airport. LUG also manages 13,000 sq m well-equipped office space in its building complex in the CargoCity South at Frankfurt-Main Airport.

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Over the next five years, Aglan says the vision of the GSSA is to expand its portfolio of freighter airlines further and new possibilities are predictable. “Yes we are optimistic,” he said. One matter that Aghan can confirm is that the company, with existing branches in Belgium and the Netherlands, will not be opening any further German branches. He said: “As we have branches in CGN, DUS, HAM, FRA and MUC we have already covered Germany regionally so no further branches are planned at this stage.” Skyline Air Services was founded in 2011 in Dusseldorf, Germany.

Lufthansa Cargo will take delivery in the autumn of a fourth brand-new freighter. The 777F freighter will be leased from Boeing and operated by AeroLogic at Leipzig/Halle Airport (LEJ). This will take the AeroLogic fleet to twelve aircraft this year.

ACW 4 FEBRUARY 2019

COOL CHAIN: FLOWERS

The cargo warehouse is smelling of roses With events such as Valentine’s Day approaching, you wouldn’t want to present someone you love with a shrivelled flower. Daniel Johnson spoke to Air Cargo Week about what IAG Cargo is doing to ensure they arrive in perfect condition.

ith around 2,500 tonnes of flowers being transported across its network every year, IAG Cargo has the right facilities and infrastructure to ensure these important products do not spoil in transit. Daniel Johnson, manager - global products

tells Air Cargo Week flowers are primarily moved on IAG Cargo’s Constant Fresh product, which is specifically designed for products including flowers, and is available across the entire IAG Cargo network. Predominantly, the flowers come from Africa including South Africa and eastern nations including Kenya, or from Latin America, mainly Columbia and Ecuador. He says: “There was big growth in Columbia, up 40% in volumes to Spain, particularly roses and carnations. Kenya has also been a big mover, numbers from Nairobi to London are up five fold.”

Extensive network

Customers are taking advantage of IAG Cargo’s extensive network, with Johnson saying: “Transhipments connect to the Americas and Far East. A lot of cool chain cargo terminates in London, but transhipments use the full network. Last year we had a notable shipment of 66 tonnes from Nairobi to Tokyo.” Something that has been noticeable is that buyers who would have traditionally gone to the flower auction houses in Amsterdam are going direct to the shippers. Johnson says: “We have an experienced team of cargo agents who work closely with the flower shippers and have built up relationships.” Flowers travelling with IAG Cargo usually use the Constant Fresh product, but the Prioritise express service is also popular. Johnson says: “It has quick turnaround times therefore they can make same day connections to the Americas and Far East.” He adds: “Many flower shippers look for quality and speed, getting products as quickly to market as possible.” IAG Cargo is getting ready for an increase in demand due to Valentine’s Day, with the other popular times being Mother’s Day and the summer in general, which is wedding season. Johnson says: “We have to manage capac-

ACW 4 FEBRUARY 2019

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ity in an efficient way and need to be able to work with our local agents. We need to remain flexible and some shippers have capacity agreements in place. We know in advance that certain events are in the calendar, we have to have measures in place to be able to handle the growth in demand.” Making sure produce is not damaged during the journey is very important, whether it is in the aircraft or being handled on the ground. IAG Cargo has equipment including refrigerated trucks to carry flowers between the warehouse and the aircraft in Madrid while at London Heathrow, customers can collect their shipment within 90 minutes.

Modern aircraft

Newer aircraft such as Boeing 787s, Airbus A350s and A380s have advanced temperature management in the hold, with Johnson commenting: “Specific instructions can be given to the flight deck to set a required temperature. More new aircraft improves our ability to do that.” IAG Cargo is also looking at ways to improve products and the local teams remain in contact with the customers and the growers. Johnson says: “We have spent time talking to a rose farmer in Kenya to find out what they want and need. It provides us with a real insight into what is actually required.” As customers demand higher levels of service and better use of data, carriers have to up their game and give the customers what they want. Johnson says advances from the pharmaceutical sector such as active containers are now being used for perishables to maintain temperatures in transit. Data loggers are another big area, with Johnson saying: “Customers are using them not to track GPS but measure temperature and humidity levels. Across the supply chain it is important to put the right infrastructure around it.”

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