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WORLD AIRPORTS .COM ACW Digital is sponsored by FREIGHTERS.COM
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The weekly newspaper for air cargo professionals No. 1,183
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6 JUNE 2022
Opportunity knocks for ECS ... NO MORE CARGO IN THE CABIN COULD MEAN HIGHER RATES, SAYS BROKER
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INSIDE
QR CARGO: 30 MILLION VACCINES ..
THE Indian Subcontinent is generating more than a quarter of all pharma shipments in the Qatar Airways Cargo network ... PAGE 2
COMMUNICATION IS KEY ...
FORWARDERS are ready to digitise, but need to better understand its worth, says US Airforwarders Association chief Brandon Fried ... PAGE 2
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ressure on the airfreight market is unlikely to ease off in the near future, says a leading online broker. In particular, the European Union Aviation Safety Agency (EASA)’s ending on 31 July of easements that have allowed ‘cargo in the cabin’ flights during the pandemic will reduce capacity at a crucial time, says Ed Gillett, co-founder and director of UK-based CharterSync, “Cargo in the cabin was a real lifeline to the industry, especially for imports into Europe from China,” he said. In his view, the decision to end it is premature, although he accepts that the amount of such capacity available would reduce over time as more airlines returned to passenger flying. The regulatory authorities in North America have not yet followed EASA’s lead in ending the practice, although some carriers have decided to end cargo in the cabin voluntarily as they in-
EU DRONE BREAKTHROUGH ...
crease their passenger schedules. Fuel prices have meanwhile been pushing rates ever higher, with the cost of chartering an Airbus A330 on average 35% higher than at the same time last year, says Ed Gillett. There is little prospect of fuel prices reducing significantly in the immediate future while other factors, such as the need for many carriers to avoid Russian airspace, will remain in play. CharterSync recently relaunched its platform and extended it from being an intra-European to a global service. There has already been considerable interest in charters from China into North America from forwarders, Gillett says. Capacity is available on most routes, but at a price. Many forwarders have been making forward bookings in order to lock in rates in the expectation that they are unlikely to fall soon while the market may go even higher than current levels.
Much of the business CharterSync has handled has been for the automotive, oil and gas and pharmaceutical industries. Cargo being moved is not necessarily of intrinsically high value but is needed urgently to avoid shutting down production lines. Many forwarders are operating aircraft into local airports to avoid the cost and congestion of major gateways while getting cargo closer to the end user. Pharma firms often use chartered airfreight capacity to move raw materials for production of vaccines, generally as ambient rather than temperature-controlled cargo. In time, the carriers could add significant full freighter aircraft to their fleets, either through ordering new aircraft or converting existing passenger planes. However, this will not be a quick fix. Converters are currently offering lead times of around two years.
MIDDLE-MILE CARGO drone developer and operator Dronamics says it has become the first company to obtain the crucial EU licence ... PAGE 4
LUCKY 7 FOR AMS MILK RUN ...
SWISSPORT says its ‘Milk Run’ supply chain optimisation initiative at Schiphol Airport Netherlands has saved 20,000 truck runs since it started seven years ago ... PAGE 6
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QR Cargo: 30 million vaccines Communication is key, out of India and counting US forwarding chief tells software firms
WITH the Indian subcontinent (ISC) generating more than a quarter of all pharma shipments in the Qatar Airways Cargo network, India is also home to the airline’s largest pool of pharma experts, says the Middle East carrier. The Indian pharmaceuticals market is the world’s third largest in terms of volume and the country caters to around 60% of global vaccine demand, so the industry plays a central role in Indian air cargo. India was one of the first markets where Qatar Airways Cargo offered it’s pharma product when it was launched in January 2014. The airline has since grown to become one of the ISC’s leading cargo carriers, and today, with a pharmaceuticals market share of almost 18% in India, practically every fifth pharma shipment leaves the country on board a Qatar Airways Cargo plane. The carrier’s senior manager regional cargo Indian subcontinent, Middle East & Pakistan, Ehab Matta, explains: “The Indian pharma market is very important for Qatar Airways Cargo. We work closely with major vaccine manufacturers in India through our global partnerships with international as well as leading local freight forwarders.” He adds that this close collaboration with customers led to Hyderabad becoming the first station in the Qatar Airways Cargo network to deploy Envirotainer’s new Releye RLP containers as soon as they had been approved for carriage on Qatar Airways aircraft. Hyderabad also holds the national record for the most active pharma containers on a single flight - 11 ULDs on one aircraft. The city is home to over 2,500 of the country’s 3,000 pharma companies and 10,500 manufacturing units, and is India’s main pharma export station, though Mumbai, Ahmedabad, Delhi, Bengaluru, and Chennai also play important
roles given the widespread production facilities across India. “India produces and exports both conventional vaccines as well as Covid-19 vaccines,” Matta continues. “Ten Covid-19 vaccines are approved for use in India, whilst Indian manufactured vaccines are approved in over 138 countries globally. We have moved close to 30 million Covid-19 vaccines to date to several destinations across our network including Africa, Middle East, Americas, Europe and Asia. “We expect to move more since the Covid-19 vaccine export restriction was lifted by the Indian Government late last year. Our participation in the UNHCR vaccine programme, through Kuehne and Nagel, is a good testimony to our commitment.” The increasing involvement of both India and Qatar Airways Cargo in supporting healthcare by means of charters and transporting not just pharmaceuticals, but all kinds of aid and relief material, and vaccines, has led to the airline sourcing a suitable candidate to act as regional cargo sales manager for products. Sunita Sanghvi, who joined the airline in Mumbai in March, is responsible for its pharma product development across India and rest of the ISC region and will work closely with the regional sales teams, customers, and partners, to provide dedicated focus, enhanced and tailor-made solutions in the face of increasing pharma demand across India and rest of ISC. “Having said that, most of our teams across all Indian stations are trained in our pharma product and are well versed with commercial and operational requirements as well as specific customer needs. It could be said that our largest pool of pharma experts is based in India,” Matta emphasises, pointing out, too, that the Indian teams are supported by the central product management team based at the Doha head office.
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FORWARDERS are ready to invest in digitisation but need to better understand its worth beyond it being a shipper or regulatory requirement, Airforwarders Association executive director Brandon Fried told delegates at the CNS Partnership Conference in Phoenix. “There has been steady acceptance and adoption in the air cargo sector at large, but within the independent freight for-
Fried emphasised that for the necessary increased engagement to happen forwarders need to understand what is at stake. Acknowledging the challenge of reaching out to the diverse, up to 4,000-strong US forwarder community, Fried stressed that software providers had to be better at demonstrating the benefits of digital compliance. “If the benefits of adopting a specific
warder community, digitisation is driven by the shipper,” said Fried. “Many AfA members invested in automation before the pandemic and could work from home, so in many ways the COVID lockdowns were a gigantic proof of concept. “But for continued and more widespread streamlining of operations through digitisation, there needs to be a more clearly articulated value proposition.”
automation solution are not properly communicated, forwarders won’t move on from legacy practices,” said Fried. “The software providers have to be better at demonstrating the benefits of digitisation and until they do I think the industry at large is paying the price.” Fried was speaking at the CNS Partnership Conference 2022, attended by a record-breaking 750 delegates from across the globe.
LATAM receives third freighter with many more aircraft to come LATAM Group received a new Boeing 767 BCF on 21 May, the third of four conversions it is due receive this year. The Latin American carrier will take delivery of another Boeing 767F in September. LATAM’s cargo subsidiaries will finish the year with 16 freighters but a further six Boeing 767 BCFs are due to arrive during 2023, giving a dedicated cargo fleet of between 19 and 22 cargo aircraft by 2023. The latest aircraft received will be primarily used to transport flowers from Colombia and Ecuador, and will further expand the network in the US and Europe. The aircraft due to be received in September
will help LATAM prepare for planned growth in 2023, including several new routes between North and South America. LATAM Cargo CEO Andres Bianchi, said: “The arrival of five freighter B767s this year represents a significant progress for LATAM’s cargo subsidiaries, since it allows the group to give more alternatives to clients utilising the optimal aircraft for our markets. “In fact, we can already see concrete results: during the Mother’s Day season, LATAM’s cargo subsidiaries transported 16,400 tonnes of flowers. This is a record for LATAM and consolidated the group and its cargo subsidiaries as the main flower operator in the region.”
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Licence could pave way for EU-wide drone cargo flights
MIDDLE-MILE CARGO drone developer and operator Dronamics says it has become the first company to obtain the EU’s Light UAS Operator Certificate (LUC). The LUC is recognised in all EU member states and provides drone operators with significant business opportunities across the single market. The announcement, made during EBACE (European Business Aviation Conference Exhibition) comes as the company prepares for the first commercial flights of its flagship Black Swan aircraft later this year. Carrying 350kg up to 2,500km, the Black Swan aims to transform supply chains by making fulfilment more efficient, resulting in cost, time and carbon emission savings. Dronamics is the first cargo drone company to secure the licence granted by the Transport Malta Civil Aviation Directorate. It allows it to self-authorise flight operations of its Black Swan aircraft across EU countries, including Beyond Visual Line Of Sight (BVLOS) operations. Dronamics plans to scale up its operations and run its first commercial flights out of Malta and Italy later this year. With Malta as its European operations base, Dronamics is well placed to operate its first routes over the Mediterranean, linking key hubs across the region. Transport Malta has been spearheading the advancement of aviation innovation in
Europe, thanks to its expertise as a global aviation hub as well as government support for the UAS (unmanned aircraft systems) sector. Captain Charles Pace, director general of Transport Malta’s Civil Aviation Directorate said: “The operational concept, the experienced and passionate team, and above all the company mission, made us believe that Dronamics will be the pioneer of a new, safe, and exciting era of drone cargo long range operation.” Dronamics COO, Sergio Oliveira e Silva, added: “Becoming the first cargo drone company to obtain LUC certification is a huge milestone for us and validates years of hard work in developing our unique and market-leading solution. Our team has been involved in numerous AOCs on several continents before, and we are continuously impressed with the world-class professionalism and expertise of Transport Malta, coupled with a pro-innovation mindset. “With the support of such a sophisticated and technologically advanced regulator, and with Malta as our European operations base, we are well placed to progress our operations and start serving key routes across the Mediterranean later this year and continue our future expansion so that we can achieve our mission to enable same-day delivery for everyone, everywhere.”
AIRCRAFT leasing and air cargo transportation provider Air Transport Services Group (ATSG) and aviation services integrator GA Telesis have reached agreement with the Clinton County Port Authority (CCPA), JobsOhio and the Ohio Department of Development to open a 7,200sq m Specialised Procedures Aeroengine Hospital (SPAH) at the Wilmington Air Park in southwestern Ohio. The SPAH is scheduled to open in September 2022 and will be capable of handling more than
200 aircraft engines per year, focusing on those manufactured by General Electric and CFM International. The investment marks the first US location for a GA Telesis SPAH and will provide a variety of engine services to global aviation customers from the Wilmington Air Park location. GA Telesis also operates a SPAH in Helsinki, Finland. The new Ohio SPAH will create 50 jobs, including both administration and skilled technician roles.
A hospital for freighter engines
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Lucky seven for Amsterdam truck milk run SWISSPORT says its ‘Milk Run’ supply chain optimisation initiative at Schiphol Airport Netherlands has saved 20,000 truck runs since it started seven years ago. The service combines freight to and from several cargo forwarders into a single truck, making for a more efficient and sustainable cargo process. The system saves time, fuel and reduces carbon emissions, says the handler. Handlers, forwarders and the entire supply chain benefit as the cargo is handled faster, more efficiently and more reliably. But with many freight forwarders still arranging trucks individually, there still is scope to improve efficiency at the airport and many trucks are driving around with three quarters of their capacity unused, it says. The Milk Run initiative at Amsterdam Schiphol Airport was launched by a small number of handlers and forwarders in 2015 and in early 2021 was expanded to include export cargo. “Swissport was one of the first to get on board with the Milk Run imitative in our cargo community at Schiphol Airport” says Daniel Tarrega, Swissport CEO for the Netherlands.
“In addition to the reduced environmental impact, the efficiency gains allow us to serve our customers even better by processing more air cargo, faster.” Director of cargo, Jeroen Giling, commented: “The loading and unloading of Milk Run trucks is a top priority and happens at a dedicated truck dock to ensure an efficient operation. We are immensely proud to provide this innovative service to our customers. It is a great combination of workload optimisation and improving sustainability in the air cargo business.” With this new way of working, the handler takes control of the primary distribution phase of import freight and benefits from optimised export freight deliveries at the warehouse. Less traffic means less congestion and fewer delays and allows for more accurate and efficient resource management. Swissport has recently announced a major increase of its cargo warehousing capacity by adding a new, second landside terminal at Amsterdam Schiphol Airport. The new facility, located only a 10-minute drive from two existing terminals, expands Swissport’s cargo handling capacity to 35,000sq m.
Airblox paves way for air capacity trading
AVIATION fintech firm Airblox has launched a live feed of global air freight scheduled flight capacity to support users of its electronic Block Space Agreement (eBSA) booking service. Airblox’s online marketplace enables freight forwarders and airlines to trade air cargo capacity in the form of standardised eBSAs. The new live feed will enable users to view capacity and make informed business decisions by making bids for and securing eBSAs at competitive prices, it says. Airblox says it is pioneering the digitisation of Block Space Agreements (BSAs), where companies purchase cargo space on a flight in advance, to make the BSA a tradable commodity.
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“By digitising capacity in a centralised exchange in a standardised format, the market is assigning a certain value to it that can be traded,” Edip Pektas, founder of Airblox told delegates at the CNS Partnership Conference in Phoenix, Arizona. “We believe that the future of air cargo capacity is as a tradable concept, and by launching this new feed, we are a step closer to giving full transparency of the scheduled global airfreight capacity to our users so that they can make informed decisions.” Airblox says it is the first online platform giving air cargo stakeholders an opportunity to trade, exchange, and block cargo capacity in a blockchain infrastructure guaranteeing secure transactions.
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Opportunity knocks for ECS in Asia and Latam and Airbus. The increase in e-commerce in the region is accompanied by a subsequent increase in perishable goods, automobiles and chemicals. We therefore plan to strengthen our presence in these regions in the short term through new acquisitions. We are also planning to open an office in Los Angeles in the near future. What carriers does ECS Group represent in these regions? We recently won a new contract with DHL in Brazil. This is a sign of confidence since we already represent them in Chile. This is a new milestone in the ECS Group’s strategy of being fully and strongly established in South America and Caribbean, providing augmented GSA solutions to our airline customers. Regarding Asia, we won a contract with Air Premia, and we are really proud to have the opportunity to represent the airline not only in its home market but also all over the world. This is the first reason why Globe Air Cargo (one of our subsidiaries) has opened a new office in Korea.
ACW talks to ECS group chairman Adrien Thominet about his expansion plans in two key regions of the world – Asia and Latin America. Do you see Latin America and Asia as developing markets and if so why? Any emerging trends? They are both regions with enormous potential, even more so
with the growth of e-commerce. This is a trend that will continue to intensify. The number of marketplaces is increasing, including those positioned in the B2B market, and the digitisation of our society supports this practice. This is particularly the case in Latin America. Asia is the ‘world’s factory’ and will soon increase its market share. This is reflected in the order forecasts of Boeing
In which countries do you have a presence in these regions and have you plans for more? ECS Group started its expansion in LATAM in 2014, opening its first subsidiary, Globe Air, in Mexico. We are also now established in Equator, Colombia, Dominican Republic, Peru, Chile and Argentina. We have the firm determination to have almost full coverage in the Americas within 2022, or the first semester of 2023 at the latest. Regarding Asia, we are present in Cambodia, China (with Hong Kong and Taiwan), India, Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. Indeed, we have network expansion plans that consider the North East, especially Korea and Japan, as having the greatest dynamic potential.
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