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The weekly newspaper for air cargo professionals Volume: 20

Issue: 44

6 November 2017

Asia to power air cargo growth, Boeing forecasts

nnual air cargo growth is expected to average 4.2 per cent and any market linked to Asia will be stronger, Boeing predicts in its World Air Cargo Forecast. Speaking at the Air Cargo Americas conference on 1 November, Boeing Commercial Airplanes regional director for cargo market analysis, Gregg Gildemann explained to delegates revenue tonne kilometres will grow at 4.2 per cent up to 2036, and the Asia - North America trade lane will be higher at 4.6 per cent. Boeing is also predicting that 920 new production freighters and 1,560 converted units will also be needed in that period. Gildemann says: “World GDP from 2016-36 will grow at 2.8 per cent, and Asia will exceed that at 3.9 per cent.” E-commerce will be of increasing important to the air cargo industry, with China expected to be a booming market. He says: “People want goods and want them fast, speed is so important, we are predicting 15 per cent growth per year through to 2019. “Chinese online retail sales are booming, China e-commerce back in 2010 was half of the

US, it had surpassed the US in 2013 and will probably be triple the US by 2020.” Gildemann says freighters will continue to be very important in years to come, and large freighters account for 60 per cent of available tonne kilometres. He says: “They are critical in terms of what they carry and what they contribute to the world economy. Boeing has a vested interest in freighter market as we have 90 per cent of the market. It is an area we really excelled in and hope to continue in the future.” Gildemann says freighters will continue to carry considerable quantities of air cargo in

the future despite increasing numbers of cargo friendly passenger aircraft. He explains: “Despite a big increase of 777300ERs in the market, which is an incredible plane with cargo capability, dedicated freighters are still critical in what they do and where they go and the type of customers serve. 80 per cent Asia-Europe traffic is transported by freighters, 75 per cent between Asia and North America and 40 per cent on transatlantic routes.” Gildemann also gave Boeing’s views on how air cargo had performed so far this year, saying growth had picked up at the end of the second quarter of 2016 and had remained very strong ever since. He says: “What we have seen thus far is 10.4 per cent year-to-date, which is very impressive and surprising. We were optimistic but the magnitude of the growth has caught people by surprise. This has been followed up by September growing 10 per cent year-on-year and growth is not falling off, but Gildemann warns 2017/8 will be difficult due to the strong year in 2017, so Boeing is not expecting double-digit increases in 2018.

IATA: demand slows in September, but still 9.2%

Volumes continue to soar

Airfreight demand fell slightly in September, but was still up 9.2 per cent on the same month last year, according to the International Air Transport Association (IATA). Freight tonne kilometers (FTK) saw their slowest pace of growth seen in five months. However, it was still much higher than the fiveyear average growth rate of 4.4 per cent. In September, Africa was up 17.7 per cent, Asia Pacific 9.3 per cent, North America 7.4 per cent, Europe 10.3 per cent, the Middle East 8.9 per cent and Latin America 7.6 per cent. Freight capacity (measured in available freight tonne kilometers or AFTKs), rose by 3.9 per cent compared to September last year – less than half the pace of demand growth, which IATA says is positive for industry load factors, yields, and financial performance. The association notes it appears the industry has passed a cyclical growth peak. The upward trend in seasonally-adjusted freight volumes in the third quarter has eased and the invento-

The globe’s gateways continue to see strong volume growth in the latest figures released by the Airports Council International (ACI). In August, ACI says global freight reached a three-month peak during the month, with a 10.5 per cent YOY increase, bringing the yearto-date (YTD) growth for the first eight months to 8.7 per cent. ACI says Africa led regional growth at 21.6 per cent and YTD it is up 14.7 per cent. Kenya posted a massive 66.7 per cent increase in volumes, but Nigeria’s freight volumes declined by 6.4 per cent compared to the previous year. ACI says the same general pattern observed in July continued in August for most regions, and North America and Latin America-Caribbean, which lagged behind in July, rallied to the global growth trend and reached 10.1 per cent and 9.1 per cent growth, respectively. In August, Europe was up 11.7 per cent, Asia Pacific 9.5 per cent and the Middle East 11.6 per cent.

ry-to-sales ratio in the US is trending sideways. This indicates that the period when companies look to restock inventories quickly, which often gives air cargo a boost, has ended. IATA’s director general and chief executive officer, Alexandre de Juniac (pictured) says demand has slowed, but remains stronger than seen in recent memory. He adds: “But there are signs that this demand spurt may have peaked. So it becomes even more important to reinforce the industry’s competitiveness by accelerating the modernisation of its many antiquated processes.” Year-to-date demand growth is 10.1 per cent, above the 7.5 per cent first forecasted by IATA.

SKIES WILL REMAIN OPEN AND 3RD RUNWAY ON TRACK FREIGHT HUBS SEE MIXED RESULTS BUT STILL EXPAND SALES SOAR IN 2017 FOR OMAN AIR CARGO SCHIPHOL REMAINS THE HUB FOR E-COMMERCE

IAG Cargo has high hopes for strong peak IAG Cargo’s revenue increased by 7.9 per cent in the third quarter (Q3) to $304 million) despite tonnage seeing a small dip. Tonnage fell by 0.6 per cent to 167,000 tonnes, though cargo tonne kilometres (CTK) were up by 7.7 per cent to 1.4 billion. In the nine months up to 30 September, cargo revenue was up 4.3 per cent to €775 million, CTK increased by 5.9 per cent to 4.2 billion but tonnage was down 8.3 per cent to 498,000 tonnes. IAG Cargo chief financial officer, Lewis Girdwood says demand grew faster than capacity, and the upswing should mean a strong peak. He says: “These results have been largely driven by demand from Asia Pacific which has continued to deliver strong volumes. “The ocean congestion between China and Europe continues to be a driver for the region’s success and we have seen high demand for machinery, auto-parts and industrial goods on this route. Our time sensitive products Prioritise and Critical have supported customer demand.” He adds: “As we enter the final months of the year we have ensured we are well prepared for the peak season so we can continue to deliver for our customers over the busiest time in the air cargo calendar.”

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NEWSWEEK Hubs see strong growth in cargo volumes

eipzig/Halle Airport (pictured) has grown for the 13th consecutive year with volumes increasing by 7.7 per cent in the first nine months of 2017. Germany’s second largest cargo airport has handled 828,163 tonnes between January and September, meaning growth at Europe’s fifth busiest freight airport is continuing for the 13th year in succession. The airport passed the one million tonne mark in 2016, and is home to more than 40 cargo airlines, and global logistics companies such as DHL Express, Aerologic and Ruslan Salis. Moscow Sheremetyevo International Airport handled more than 200,000 tonnes in the first nine months of 2017 – an uplift of 39.4 per cent on the same period last year. The airport says the increase in traffic volume was due to a significant increase in cargo turnover on international airlines, but domestic carriers saw a fall in traffic in the period of 3.5 per cent. The largest increase in international airlines was registered in the volume of transfer cargo transported via Sheremetyevo (+ 100 per cent over September 2016). Also, the volume of international carrier imports increased sig-

Strong performance posted by DSV

HIGHER than expected business performance in both air cargo and sea freight have led to more upbeat results at Danish freight forwarder DSV. The company reported in its financial figures for the period from 1 January to 30 September, that operating profit before special items is expected to be in the range of DKK 4,700-4,900 million ($734 million) (previously DKK 4,500-4,700 million). In the first nine months of 2017, net revenue was DKK 55,882 million, up on the DKK

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50,130 million. DSV says the cost synergies from the acquisition and integration of US forwarder UTi have been achieved faster than expected in 2017. The full remaining full-year impact from cost synergies is now expected to be DKK 200 million in 2018 (previously DKK 300 million). DSV chief executive officer, Jens Bjørn Andersen says it upgraded its expectations for 2017.

nificantly (+51 per cent against similar indicators in 2016). The main trade lanes, accounting for more than 50 per cent of the total freight traffic, were China, Germany, the US, the Netherlands, France, Italy and Israel. Among other areas worth noting are India, South Korea, Thailand and the UK. Heathrow Airport’s volumes increased by 10.5 per cent to 1.25 million tonnes while passenger numbers rose by 3.1 per cent to 59.1 million.

Istanbul to host logitrans for the 11th time LOGITRANS is to return to Istanbul for the 11th time, offering decision-makers from the Eurasian region a forum for making contacts and maintain existing business relations. In addition to maintaining contacts and sharing of knowledge, the conference program will provide detailed information on the most important trends in this rapidly changing region and continue for three days from 15 – 17 November at the ifm Istanbul Expo Center.

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Messe Muenchen member of the management team, Gerhard Gerritzen says: “The excellent figures from the previous year and developments in terms of the registrations for the coming logitrans demonstrate how important it is for companies to remain in close contact, even in economically difficult times.” Turkey’s major investments in infrastructure include a third bridge over the Bosporus and the building of a new Istanbul airport.

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NEWS WEEK

Skies will remain open to EU and 3rd runway on track

ircraft will continue to fly into and out of the UK postBrexit and the government is on track to deliver a 3rd runway at Heathrow Airport, delegates at the Airport Operators Association (AOA) Conference heard on 30 October. Much concern has been raised in the aviation industry whether current arrangements with other European Union (EU) countries will continue and if the UK will remain in Open Skies agreements, but this was rubbished by the UK Government’s secretary of state for transport, Chris Grayling. He says: “It is inconceivable that the planes will stop flying. It will not happen and the industry can look to the future with confidence. I am looking for positive Open Skies agreements. I see under no circumstances that planes will not be able to fly to and from the UK to the EU. We will be ready to replace the existing arrangements with EU countries.” Grayling adds: “Detailed work is happening today and I am confident we will have a very sensible partnership with the EU in the future and aviation will be a central part of that. We are making rapid progress to secure post-Brexit agreements with all these countries in the EU.”

The government has given its backing for a 3rd runway at Heathrow, which is heavily backed by the freight community, and a vote on the expansion is set to take place at the Houses of Parliament in the first half of next year. Grayling is sure the vote will pass: “I am very confident we will have the majority in Parliament to get the Heathrow expansion delivered. “We need to get through the consultation process and try and make sure we get this right. It is our view we should expand

Heathrow, but we should listen to concerns, but I remain pretty confident MPs share my view. It will benefit the whole of the UK including regional airports, connectivity and the economy.” Grayling also says a recent government report released last month suggested the 3rd runway development can meet environmental targets, seen by many as a major hurdle in getting it delivered. He adds: “We should have taken this decision decades ago and I am determined to get this through.” In a later conference session, Heathrow’s chief executive officer (CEO), John Holland-Kaye talked of the importance of cargo to the UK economy and says air cargo plays a vital role in future success of the UK economy and adds it can be “underestimated”, while post-Brexit it will be even more important. Holland-Kaye notes 80 per cent of air cargo is moved through the London hub and it plays an integral role in the movement of goods, especially exports. During the same panel debate, Gatwick Airport CEO, Stewart Wingate also called for his gateway to get a 2nd runway: “We are very happy for Heathrow to go ahead, but we want to as well as we can privately fund it. The UK can have the best of both world’s by having one at both.”

RAM launches new service

ROYAL Air Maroc (RAM) Cargo has launched a new service working with the ECS Group – dedicated to the shipment of personal belongings from the US and Canada to an extended number of countries in Africa. This initiative will have special promotional rates for all freight bookings made until the 15 November. This service will make moving easier and more affordable. One of RAM Cargo’s general sales and service agent is ECS Group, who says it is confident in the success of this initiative managed by its subsidiaries. The teams of Globe Air Cargo in the USA and Exp-Air Cargo in Canada are already actively promoting this offer which responds to the large North and West African communities’ demand. Globe Air Cargo in France is getting ready to be the next country to launch this service. To celebrate the launch, RAM Cargo & ECS sponsored a double-header soccer match on the 7 October in New Jersey, between New York Red Bulls and the Vancouver Whitecaps FC.

Natural disasters hit UPS

PROFITS in the third quarter dipped marginally for UPS with the US domestic package sector declining but international packages and supply chain & freight performing strongly. Third quarter net profits were down 0.5 per cent to $1.26 billion, with operating profits remaining at $2 billion. US domestic package operating profits were down 5.6 per cent to $1.18 billion due to one fewer operating days, on going initiatives including facility construction and deployment of Saturday operations, while natural disasters had an affect of about $50 million. International packages were up by 8.9 per cent to $627 million with international domestic daily shipments increasing 5.7 per cent led by double digit growth across several European countries. UPS says regulatory approval of UPS’s joint venture with SF Express, a small package carrier in China also being a highlight. Supply chain & freight by 9.7 per cent to $226 million, with tonnage gains in Freight Forwarding, UPS Freight and Coyote Logistics contributing to top-line results. UPS chairman and chief executive officer, David Abney says: “Our business segments adapted quickly to changing conditions this quarter, taking advantage of market opportunities while minimising cost and service disruptions from recent events.” Net profits up to 30 September rose 3.7 per cent to $3.8 billion.

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MIDDLE EAST

UAE freight hubs see mixed results but still expand

wo of the Middle East’s biggest air cargo hubs Dubai and Abu Dhabi have seen mixed results this year, while its two home carriers Emirates and Etihad Airways continue to expand, but have also faced new financial headwinds. Dubai International Airport’s September freight volumes reached 217,120 tonnes compared to 205,142 tonnes recorded during the same month in 2016, an increase of 5.8 per cent. Dubai Airports chief executive officer, Paul Griffiths (pictured) says the gateway’s international growth across its business throughout the first nine months of 2017 has been “very satisfying”. Fellow city gateway Dubai World Central, which handles freighters into Dubai, handled 443,835 tonnes in the first half of this year, an increase of 3.2 per cent on the same six months in 2016. Over at Abu Dhabi International Airport, the latest figures released were for

August when the gateway handled 66,923 tonnes, a 2.6 per cent decline on the same month in 2016. In the first eight months of 2017, the airport handled 498,822 tonnes of freight, a 4.9 per cent fall on the period last year. Emirates has been busy expanding its belly cargo services and has added an extra flight to its service between Dubai and Algiers, making it a daily service from 13 December. The new service operates a Boeing 777-300 on the route and it is an important cargo destination in the carrier’s North African network and in less than five years, it has carried nearly 27,000 tonnes of cargo. Algeria will become the fourth destination in North Africa to have a daily frequency, along with Casablanca, Tunis and Khartoum. Emirates has also made the Tunis service daily and moved from six flights a week to seven on 30 October, utilising a B777-300 The added frequency will offer importers and exporters an extra 23 tonnes of cargo capacity in each direction. Goods carried between Tunis and Dubai include fruits and vegetables, fresh and frozen seafood, electronic equipment, truffles and dates. Emirates is also increasing its London capacity in response to

heightened demand during the Christmas period and will offer a further cargo uplift on six additional B777-300 flights between Dubai and Heathrow Airport from 15 December to 7 January. In other news, cargo arm Emirates SkyCargo and Cargolux Airlines announced a codeshare partnership from 11 October for air cargo transportation.

Operational partnership

Earlier this year, both carriers started a strategic operational partnership working closely on a number of operational areas including block space and interline agreements, aircraft charter, hub connectivity between Dubai and Luxembourg and cargo handling cooperation. The partnership has been off to a successful start with Emirates SkyCargo commencing weekly freighter services to Luxembourg from June 2017 and Cargolux transferring handling for their freighter flights at DWC to Emirates SkyCargo in September. Since July, Emirates has also chartered Boeing 747 freighter aircraft from Cargolux’s fleet. The new codeshare partnership between is a progression of the operational partnership under which both carriers would now be able to procure cargo capacity on each other’s flights and then offer it to their customers under their own airway bills and flight numbers. The codeshare agreement will be applicable for cargo capacity on both passenger as well as freighter flights. Over in Abu Dhabi, Etihad Airways has launched a three times a week A320 belly service to Baku in Azerbaijan, and the route will start on 2 March next year. Earlier this year, the UAE-Azerbaijan Joint Economic Committee said both countries were to focus on nine key areas for bilateral cooperation, including air transport, tourism, communications, environment, water, agriculture, renewable energy, modern technology and industry. Non-oil trade between the two countries reached over $605 million in 2015, increasing by $228 million during the first nine months of 2016.

Roccasecca leaves OAMC

OMAN Airports Management Company (OAMC) and its cargo development director, Massimo Roccasecca have parted company citing ‘different points of view’. He says it has been a “pleasure to work elbow to elbow with some fantastic, amazing professionals” and that he cherished every moment of the last 14 months. Roccasecca says: “As it may happen sometimes in life, different points of view may lead to unexpected, painful separations, but I strongly believe that if one always gives his best, time will honour him, time will endure his legacy, and time will reward him with true, strong long-lasting relationships, personal respect and professional appreciation.” He plans to remain in Oman for the time being “if only for personal logistics needs”.

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MIDDLE EAST Oman ties up with SmartKargo Sales soar in 2017 for Oman

man Air Cargo has launched its 100 per cent Cloud-based ERP Solution, implemented by SmartKargo, to bring digital transformation to all aspects of its business to improve revenue and customer service. The SmartKargo booking system provides web-based access for agents and employees of the carrier – with the capability for customer bookings via a mobile app to following in the coming months. The solution facilitates the paperless transformation of key business processes across the board, including e-AWB and the capability to digitally correct, store and transmit associated documentation via e-pouch, leveraging standard IATA C-IMP messaging. Oman Air senior vice president for commercial cargo, Mohammed Al Musafir says: “We chose the SmartKargo cloud solution due to the robust infrastructure, platform and advanced technology that it is built upon. “We can now provide easy, secure access via integration with any business partner across the world, with little effort.” He adds: “The full SmartKargo ERP solution was deployed in less than two months. Within the first 24 hours, the Go-Live system registered a tremendous response from users globally.” The real-time Revenue and Capacity Management informed by immediate access to data, full shipment visibility and robust reporting allows

for advanced insights into the business, and the SmartKargo Link capability facilitates Oman Air Cargo’s interline opportunities by streamlining processes and communication with partner airlines. SmartKargo executive vice president for sales & marketing, Jay Shelat says: “Oman Air demonstrated an amazing level of teamwork with SmartKargo, allowing us to take the vision of their management and implement it quickly. We are honoured to be a part of the phenomenal success of Oman Air.” SmartKargo is a 100 per cent Cloud-based, browser accessed solution developed by airline and cargo industry experts, and is configured to address unique scenarios for global air cargo operators. It is built upon the Microsoft Azure Cloud and the SmartKargo Microsoft partnership provides a solution that addresses the needs of global airlines and never becomes obsolete.

SALES are up 27 per cent at Oman Air Cargo this year compared to the same time in 2016. Senior vice president for commercial cargo, Mohammed Al Musafir says: “Provided this trend continues until the end of December, with all relevant indicators supporting this expectation, we should end up somewhere in the region of 200,000 tons per annum.” Oman Air Cargo is working to improve cargo services and offerings, and in the process of better defining its special products. Al Musafir explains the main trade lanes driving business are the Far East, Indian subcontinent and Europe and predominantly India, where it is very strong with 11 online stations. He adds: “We also believe our new services to Guangzhou, Manchester and Nairobi will be attractive routes for the freight industry, upping our volumes further. We focus on key markets like India where we offer 154 flights per week. We concentrate on connecting India with Europe and Middle East via Muscat along with Asian destinations.” Oman Air Cargo is looking to add freighters to supplement its growing cargo operations, part of the Sultanate of Oman’s vision, in which logistics is one of the six main focus sectors. Al Musafir says: “The possibility of adding freighters to our operation will add capacity and further flexibility to better achieve this goal as well as ultimately providing our clients with a better product and service offering. We will be announcing our decision once our

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market analysis and strategy is finalised.” The future strategy for growth revolves around three areas – expansion of product and service offerings, the opening of a new 38,000 square metre cargo facility at Muscat International Airport in the first half of 2018 and growing the customer service department. Al Musafir notes the majority of business is transshipments between continents, but as the Sultanate diversifies away from the oil industry as a major contributor to its GDP, local industries will flourish and exports will rise, leading to natural growth of shipments out of Muscat. “We always support local businesses and offer specialised services where required, which in turn add value to the country as a whole. We work closely with local fishery companies that have presented Oman’s local product to international markets,” he adds. He believes demand for air cargo will primarily be driven by time and services offered and with more companies revamping procurement, the need is expected to rise. Al Musafir adds: “Oman Air Cargo’s strategy is primarily focusing on two core factors ‘Time and Service’. Our main objective is to work on business models that offer added value.”

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FAR EAST China Airlines restarts flights to the UK

hina Airlines, the national flag carrier of Taiwan is returning to the UK in December with non-stop flights to London’s Gatwick Airport. The airline will operate four flights a week between Gatwick and Taipei’s Taoyuan International Airport from 1 December using an Airbus A350-900. The flight will take about 13 hours, leaving Gatwick at 21.15h on Mondays, Wednesdays, Fridays and Saturdays and arriving in Taipei at 18.30h the next day. Return flights will depart at 09.30h on Mondays, Wednesdays and Saturdays, landing at 15.30h, and on Fridays it will leave at 08.55h and arrive at 14.55h. China Airlines previous operated flights between Heathrow Airport and Taipei between 2010 and 2012. China Airlines senior vice president for Europe, Roger Han

says: “We’re incredibly excited to be returning to the UK this year, making travel between the UK and Taiwan that much more simple and accessible.” China Airlines has also upgraded routes by using an A350 on flights to Taipei, switching from a Boeing 777 on 14 May. It will also be starting flights to Ontario, California in the Spring of 2018, operating a 777-300ER four times a week. Gatwick has also welcomed a new link to Singapore with Norwegian operating four Boeing 787-9 Dreamliner flights a week. Norwegian launched the 12 hour 45 minute service, which travels 6,764 miles, on 28 September. When the service was launched, Gatwick Airport chief executive officer, Stewart Wingate commented: “Singapore is one of the world’s premier destinations and is a significant addition to Gatwick’s 60-strong long-haul route network.”

Rhenus expands in China and Taiwan

RHENUS Logistics continues to expand its operations in the Greater China region with new branch offices opening in Nanjing on the Chinese mainland and Kaohsiung, Taiwan. The forwarder’s Nanjing office opened in September 2017 to provide additional local logistics solutions to existing and potential local customers in Jiangsu province. Also in the same month, the Kaohsiung office was opened, to further penetrate the local market and increase awareness of Rhenus to customers in the south of Taiwan. Rhenus Logistics Greater China managing director, Michael Sickinger says: “The Rhenus Nanjing branch has become our fourth office in the Eastern China region along with our head office for Mainland China in Shanghai, plus Suzhou and Wuxi. In addition we have opened a new office in Kaohsiung a strategically important move for our company. “Both new office locations will be focusing on our core products being Air & Ocean Freight Services, Warehousing Solutions and Domestic Trucking. In the mainland, we will also continue developing our existing Rail Land-Bridge Services on the LCL (Less-than-Container Load) and FCL (Full-Container-Load) business between China and Europe. “China in general is a country where you need to be close to the markets and potential customers. The country’s continuous growth and at the same time ongoing localisation are very important factors for us. In order to provide our customers all over China with a complete service portfolio, we need to have a local footprint.” Sickinger adds Rhenus plans to continue its aggressive expansion plan in China with the next warehouse to be opened in Yantian, South China in October this year and a further office to open in Wuhan in 2018, with more to follow.

Qingdao gains new services BEIJING Capital Airlines is expanding its network from Qingdao Liuting International Airport with flights to London and Sydney. The Sydney flights started on 30 October using an Airbus A330 on Mondays and Fridays. The London Heathrow Airport services will start on 17 November, also operating twice a week using an Airbus A330. Qingdao, in Shandong Province on the East coast of China, is the largest city in its province. It has a population of about nine million people, and is a major seaport, naval base and industrial centre. The city has four industrial zones: the Qingdao Special Economic & Technological Development Area, Qingdao Free Trade Zone, Qingdao High-tech Industrial Zone and Qingdao University Industrial Zone. It is also home to the Tsingtao Brewery, the second largest brewery in China. The airport is about 19 miles from the city centre, and is a hub for Qingdao Airlines and Shandong Airlines. It is a focus city for Beijing Capital Airlines and China Eastern Airlines.

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FAR EAST

Schiphol remains the hub for e-commerce exports

msterdam Airport Schiphol is seeing a rise in exports to China and facilitating the delivery of a wide range of goods to Chinese online consumers. China is Schiphol’s largest cargo market and e-commerce is helping to strengthen that position. It has eight airlines flying more than 100 flights a week to 12 cities. It says the global cross-border e-commerce boom is going from strength to strength, with retail sales for mobile e-commerce in China soon set to reach $1 trillion. The leading exporting nations are the USA, Hong Kong, Malaysia, the Netherlands and South Korea. Amsterdam Airport Schiphol cargo director, Jonas van Stekelenburg (pictured) says: “Historically, China, is the recognised as the world’s leading manufacturer, but Chinese consumers are increasingly sourcing a wide range of online luxury items from The Netherlands and across Europe. On the back of this demand, a significant trend is for increased imports into China of goods bought on online marketplaces.” He says Schiphol is connected to six out of 12 cross-border e-commerce pilot zones assigned by the Chinese government. He explains: “Earlier this year Xi’an was added to our network of destinations by China Cargo Airlines in an agreement aligned with the One Belt One Road strategy. Dutch Customs have specifically created a ruling for fast Customs clearance for low value e-commerce shipments with the Chinese authorities.” The airport’s simplified electronic Customs declaration

means that both export and imported e-commerce cargo is processed quickly and efficiently. Postal parcels are handled through the PostNL gateway at the airport or are seamlessly despatched throughout Europe via other last mile delivery services. Van Stekelenburg comments: “China’s consumers are sourcing overseas consumer items in ever larger quantities, and it is this trend and business growth that Amsterdam Schiphol Cargo is poised to capture.” The most popular e-commerce products imported to China from Schiphol are baby products, fashion items and cosmetics, and exports include hi-tech and lifestyle products. The airlines who operate the flights to China are China Southern Airlines, China Cargo Airlines, Air China Cargo, China

Eastern Airlines, KLM Royal Dutch Airlines, Cathay Pacific Airlines, AirBridgeCargo Airlines and Xiamen Airlines.

FedEx to construct new terminal at Incheon Airport

FEDEX Express has signed an agreement with Incheon International Airport Corporation confirming the construction of a new FedEx Cargo Terminal at the Incheon International Airport. The facility will cover 23,425 square metres, more than twice the size of FedEx’s existing facility, and includes a warehouse, office and canopy. It is expected to be completed in 2021, and FedEx plans to deploy an advanced cargo sorting system at the new terminal to meet the fast growing demand of express cargo. The new facility will have the capacity to sort up to 18,000 packages per hour, allowing inbound and outbound shipments to be processed faster. The agreement was signed on 28 September and FedEx Express Korea managing director, Eun-Mi Chae said at the time: “As one of the largest economies in Asia, Korea continues to build its trade connections internationally. FedEx is investing to support the robust demand in Korean imports and exports to better serve our customers in this important market.” He added: “With the expansion of our FedEx facility at Korea’s main gateway, we will improve our operational capabilities and create greater access to the global market supported through our integrated network.” FedEx Express says the new cargo facility at Incheon is a strategic move, which has seen significant growth in international shipments in recent years, and the new terminal will better facilitate the volume of international shipments processed at Incheon.

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INFORMATION TECHNOLOGY

New digital data sharing concept to be piloted

osoh Corporation, Panalpina World Transport, KLM Cargo and facilitating parties Schiphol Cargo, Dutch Customs authorities and Cargonaut, are collaborating in an initiative to re-use data from the shipper throughout the supply chain - as part of joint vision to make processes smoother and more efficient. Global chemical and specialty materials company, Tosoh will act as the launch customer, enabling the concept to be proven in practice with its logistics service provider Panalpina and KLM Cargo. The initiative is facilitated by the connected logistic data backbones of TCF/SAC and Schiphol that is operated by Cargonaut. This is thanks to the iShare digital governance model that is currently being rolled out in the Netherlands,

information in the logistic data backbones is accessible for authorised eyes only, subject to supply chain partner agreement. Tosoh supply chain manager and chairman of TIACA´s shippers Advisory Committee, Lars Droog says the aim of the scheme is to see what is happening with data from the source and the objectives are to develop shorter lead-times, improved efficiency, increased visibility and reliable data.

Fix a problem

The data concept has been developed to attempt to fix a problem in the air cargo supply chain as there is little, or no data exchange in each process step, no supply chain visibility and too much lag time and unpredictability due to

the lack of timely information in each process. Droog explains that the shipper (Tosoh) will decide who and what data is shared with logistics partners such as Panalpina, other supply chain partners and airport operators and authorities. Tosoh will then make the data available and be in charge of the data through the logistic data backbones by using the iSHARE model– the governance and rules - a uniform set of arrangements for identification, authentication and authorisation. Cargonaut chief executive officer, Nanne Onland says iSHARE enables data-owners (in this case Tosoh) to stay in charge and to decide what data will be shared, or not and with whom.

Data gains

He explains that the scheme will hopefully enable organisations to share logistics data with multiple other systems in a “uniform, simple and controlled way”. Onland notes that in the first phase, the aim of the Tosoh Initiative is not to make process change and is only to see what is gained from the data and what impact reusing has to different partners. “In this first phase, it is not our intention to change the process - the difficult part. We hope by starting to reuse the information that ultimately players can use it and get insight in how to do better things better,” Onland says. KLM Cargo director of operational integrity, compliance and safety, Kester Meijer adds:

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“We are in dialogue with Tosoh, and Panalpina to stop a process, or take out and improve that process, as they already have the information available.” The data-sharing concept was detailed in a session at TIACA’s Executive Summit, which took place from 18-20 October in Miami, and Onland says discussions yielded some interesting points.

Positive feedback

He explains the scheme received “positive encouragement” from various associations and supply chain stakeholders, which included the World Customs Organization who wants to “see what happens” from the pilot run, while Onland notes TIACA also found it very interesting. Onland says there is also potential down the line for TIACA to be involved and play an important role in the data-sharing concept, as the association as an independent party could be the identifier, assessing identities in the supply chain. Backbones enable unique identifying of a shipment combining different sources, from shippers and all involved logistic parties. Onland says: “We will be very happy if TIACA embraces the concept and if TIACA adopts it as a tool, which is the thinking behind iSHARE.” Future data sharing and collaboration between different parts of the supply chain using digital platforms is vital in creating a successful air cargo industry for decades to come.

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aircargoweek.com 11 06 Nov 2017 DIGITAL.indd 1

ACW 6 November 2017

11 30/10/2017 16:05

NEWSWEEK Major investment plans at Liege Airport FIATA signs MOU

iege Airport is to invest more than €20 million in new cargo warehouses and handling facilities as it looks to continue it strong growth path. For more than 12 months, cargo activity at Liege Airport has been undergoing major structural growth. The companies on the site have opened new routes, integrated new aircraft and intensified their activities. Since June, Air China Cargo, the largest Chinese cargo company, has been running a weekly flight between Shanghai and Liege and it will increase its rotations in 2018. In early October, AirBridgeCargo Airlines established its main hub at Liege. Liege Airport chief executive officer, Luc Partoune explains: “First, the global cargo business is undergoing general growth driven by good economic performance in Europe, but also by the emergence of new niches driven by e-commerce. And the saturation of Amsterdam Airport Schiphol has changed the situation”. All these developments imply an acceleration of investments by the airport, he adds: “In 2018, Liege Airport will increase its storage space as a priority. Nearly 20,000 square metres of additional warehouses and equipment are planned, representing an increase of 30 per cent of our cargo handling capacity.

“The first hall of 6,000 square metres will be available in January 2018 and the other warehouses will be operational by the end of 2018. Our strong points, labelled Flexpress – free areas, no slots and quality service – appeal to operators.” The strategy at Europe’s 8th biggest cargo hub is aimed at meeting current needs and future opportunities. More than 300 direct jobs will be created.

THE International Federation of Freight Forwarders Associations (FIATA) has signed a memorandum of understanding (MoU) with GS1 - a global standards organisation to provide a framework for further cooperation on digitising FIATA documents. A joint working group has been set-up, using the GS1 global unique identification system, enabling FIATA forwarder members to become more efficient compared to paperwork and improve the services they provide to their customers. FIATA says the transport and logistics (T&L) industry provides the backbone of global trade by servicing customers and suppliers in global supply and demand chains and processes provide critical links in the global economy, interconnecting countless manufacturers, traders, retailers and service providers as parts of complex networks that serve many global industries. FIATA says these services are expected to be faster, more reliable, more secure and transparent to satisfy everincreasing consumer expectations. FIATA’s Advisory Body Information Technology is following a step-by-step approach for identifying and migrating all their documents into a digital platform.

EAWB target still way off

THE electronic air waybill (eAWB) penetration rate in September was still well below the end of year target set by the International Air Transport Association (IATA). The month came in at 50.9 per cent, 11.1 per cent below the 62 per cent which IATA was aiming to achieve by December 2017. Penetration volumes between countries, which have ratified MC99, MP4 Treaty or Taiwan reached 797,940 in September. Top airlines ranked by eAWB penetration were Flydubai at 100 per cent, Kenya Airways at 99.3 per cent and Cathay Pacific Group at 83.4 per cent. Top freight forwarders ranked by eAWB penetration were the Expeditors Group at 68.2 per cent, Hellmann Worldwide Logistics at 64.2 per cent and Schenker tat 63 per cent. Top airports of origin ranked by eAWB volume were Hong Kong International Airport at 66.3 per cent, and second was Shanghai Pudong International Airport at 54.4 per cent. Top airlines ranked by eAWB volume were Cathay Pacific at 83.4 per cent and second was the Air France KLM Group at 64.8 per cent. Top freight forwarders ranked by eAWB volume were DHL Global Forwarding at 57.4 per cent and in second was Schenker at 63 per cent.

Lufthansa and va-Q-tec team up

LUFTHANSA Cargo and va-Q-tec are to cooperate in the passive temperature-controlled container market after signing an agreement. As part of the partnership, containers from va-Q-tec are now available worldwide at numerous stations of the German carrier. Customers shipping pharmaceutical goods will benefit from the partnership of Lufthansa Cargo and the advanced container rental service from va-Q-tec. Va-Q-tec chief executive officer, Joachim Kuhn says: “This will have a very positive effect on Germany as the fourth largest pharmaceutical market in the world.” The temperature controlled containers (va-Q-tainer), are now offered by Lufthansa. They provide solutions for six temperature ranges from -70°C to +25°C in five sizes, taking up to two US pallets inside. Last week, Lufthansa Cargo reported the expansion of the Lufthansa Cargo Cool Center is progressing, and the Road Feeder Service Cool service has been introduced.