ACW 7th May 18 by Azura International

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The weekly newspaper for air cargo professionals Volume: 21

Issue: 18

7 May 2018

Growth slows in March as global trade softens

Nanchang sets out million tonne goal

hinese airline Longhao Airlines plans to open two international cargo routes in Nanchang to help the airport achieve its goal of handling one million tonnes of cargo and mail by 2025. Nanchang City and Longhao Group will cooperate to help Changbei achieve its goal of cargo and mail throughput of 150,000 tonnes by 2020 and one million tonnes by 2025. The routes from Nanchang should be operational by June and the airline says the development of the cargo and airline industry will help optimise the regional economic structure and improve the logistics environment, and is in line with the development of Changbei Airport in Nanchang, Jiangxi province.

WCA opens shenzhen office

Nanchang City deputy mayor, Yang Wenbin visited Longhao Group for discussions with local officials and management from Longhao Group about development, where the importance of the cargo and aviation industry was stressed. The air cargo industry was described as a “bottleneck” but Nanchang Municipal Government supports Longhao Airlines opening international routes and the two sides will to what they call “1+N” cooperation in various fields around cargo and airlines.

Nine cargo routes

Nine cargo routes have been opened and three Boeing 737 freighters will be

introduced to the fleet in the first half of this year, with another five to six routes being launched this year. In December 2016, Jiangxi Provincial Airport Group signed an agreement with Longhao Aviation Group supporting Longhao setting up a passenger and cargo operation based at Changbei International Airport in Nanchang. In July 2017, Jiangxi Longhao Aviation Department Company, a wholly owned subsidiary of Longhao Group was incorporated in Nanchang. Longhao Group has also signed strategic cooperation agreements with Ruichang and Ruijin, and been in contact with more than 20 local governments in the province to discuss airport construction and cooperation.

virgin granted wda at heathrow pharma zone

Growth in air cargo demand has slowed to a 22 month low as global trade has softened, the International Air Transport Association (IATA) reports. Freight tonne kilometres (FTK) increased by 1.7 per cent in March, five percentage points lower than in February and the slowest pace of growth in 22 months. The association says the slowdown is principally due to the end of the restocking cycle, during which businesses rapidly increase their inventory to meet unexpectedly high demand, and a softening of global trade is also evident. Capacity in available FTK fell to 4.4 per cent, lower than the 6.3 per cent increase in February and also the first time in 20 months that capacity rose faster than demand. IATA director general and chief executive officer, Alexandre de Juniac says: “It’s normal that growth slows at the end of a restocking cycle. We remain optimistic that air cargo will grow up to five per cent this year. “But there are headwinds. Oil has risen strongly, and economic growth is patchy. Protectionist measures would be an own-goal for all involved—especially the US De Juniac and China.”

Hercules crashes in Georgia A US C-130 “Hercules” cargo aircraft from the Puerto Rico Air National Guard crashed about 11:30 am (15:30 GMT) near the Savannah Hilton Head International Airport in Georgia, USA on 2 May, killing nine crew members. According to CNN, the aircraft, at least fifty years old, was flying from the coastal city of Savannah, Georgia to Tucson, Arizona, where it was to due be decommissioned. The aircraft was a version normally outfitted to undertake weather reconnaissance. “Nine crew members died in the accident, but until their families and relatives are notified, we cannot give their names,” Brigadier General Isabelo Rivera said. “Our prayers, thoughts and condolences to the families and loved ones of our aviators.”

students put their thinking caps on

trade maintains altitude

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NEWSWEEK Middle East Airlines goes with ECS in Paris

iddle East Airlines (MEA) has picked ECS Group as its general sales and service agent at Paris Charles de Gaulle Airport, its European hub. ECS Group will support MEA with sales and operative services, with European markets offering volumes of diverse commodities to be shipped to Beirut including perishables, flowers, cosmetics, fashion and general cargo. To optimise MEA’s full capacity and increase its market share, ECS will cooperate with the MEA cargo management to draw up tailored services for each market. Aero Cargo France managing director, Jean Ceccaldi says: “The collaboration between MEA and our Group is a fantastic opportunity. With our experience, expansive network and expertise as one of the world’s leading GSSAs, we will be able to significantly strengthen MEA’s position on the markets covered by our new partnership.” ECS Group is further expanding its international presence with a partnership between Globe Air Cargo NL (GAC NL) and IAG Cargo. GAC NL will support IAG Cargo in the fields of commercial development and reservations for its operating companies: Aer Lingus, British Airways, Iberia, Level and Vueling. ECS Group has already

been representing IAG Cargo in Germany, Austria and Scandinavia before the airline group formed a partnership with GAC NL. GAC NL managing director, Mariët Zöllner says: “Last year was characterised by organisational growth and development. We have invested in young professionals and will focus on innovative projects and tools to further improve our services and position in the market. “With our new partner IAG Cargo we are ready to face the challenges of any further market development. We are in for another good year!”

WCA opens Shenzhen office

WCA has opened a support office in Shenzhen, China to support growing network demands and hired Mirja Nissen (pictured) as co-director of its eCommerce network. The Shenzhen office has been opened due to growth in Chinese membership, which WCA China vice president, Damin Wang says has grown “exponentially” and require more attention. He says: “Opening this secondary China office will help us manage agent requests and will align us to better support our growing membership in the area.” Nissen has been hired to work alongside WCA’s eCommerce director, Alex Allen to ensure the network provides guidance to members interested, or working in, the cross-border supply chain. She has worked in cargo and logistics since 2001 and was a trade lane manager for Weiss Rohlig USA and DHL eCommerce. WCA CEO, Dan March says: “Bringing Mirja onboard is a strategic move to keep us ahead of the curve in this rapidly expanding and increasingly vital sector of our industry. We want to provide the right tools for those working in eCommerce logistics and we believe Mirja will be able to help us do just that.”

ACW REWIND WHAT’S in a name? A lot if the company with a similar name makes headlines for all the wrong reasons.

Debonair Cargo Ltd clears its name Volume 2 Issue 40 11 October 1999 THE COLLAPSE of European low-cost carrier Debonair Airways has made headlines in the UK press and brought with it a certain discomfort to unrelated UK-based forwarder Debonair Cargo. The adverse publicity surrounding low-cost airline Debonair Airways was “impacting on the goodwill of our business”, said a concerned Matt Davies, Debonair Cargo company secretary. The situation had arisen largely because of media reports referring to their company simply as Debonair, which “suggested a connection with ourselves”, Davies complained bitterly. According to Davies, Debonair Cargo Limited, based at Leeds/Bradford airport, is “a successful owner-managed business involved in air freight” and has no connection with the grounded Luton-based airline. Debonair Airways had tried to position itself as an upmarket budget airline offering cheap flights but with free food.

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NEWSWEEK

What do shippers want?

he age-old questions of ‘what do shippers want?’ needs to be answered if meaningful Key Performance Indicators (KPI) are to be produced. The session entitled ‘Developing KPIs for air freight shippers’ at Multimodal 2018 was held in Birmingham on 2 May, focused on the work of Global Shippers Forum and Cargo iQ, an IATA interest group to develop a route map with 19 agreed steps against which performance can be measured. It was pointed out that not all shippers want to the same thing, so it is important that everyone in the supply chain works together to find the best solutions, the panel of airfreight experts agreed at the conference. Cargo iQ executive director, Ariaen Zimmerman explained that there is a need to speak a common language and increase shipment control in order to optimise performance. He asked: “In the cargo community we use a lot of industry standard acronyms, but does that give clarity to the shippers?” “We want to encourage them to talk to us, so

ACW 7 MAY 2018

Logistics industry needs young blood

we include the steps that are important to them.” DB Schenker director of security standardisation, Lothar Moehle says forwarders would not even be considered for a contract unless they can supply more visibility. He says: “We have been implementing steps for several years, but it takes time and money to implement these systems, including some change management and training at all levels, including sales people, who need to have a good idea of what is available.” American Airlines managing director of cargo sales for Europe, the Middle East and Africa, Tristan Koch says the existence of true end-toend data will “give us all a chance to sort out any wrinkles that might be there”, but KPIs must be relevant to all shippers, especially in the world of e-commerce, and not based on historical data. Zimmerman agreed, saying: “Customers want a reliable solution, not necessarily a specific flight. It is like when we search for a website. We don’t care what optic fibres are used, just that the provider gives us the best route.”

LOGISTICS firms are targeting students as young as 14 to create more interest in the profession and fill the staffing shortfall in the future. According to Career Ready head of logistics, Ian Nichol the industry is expected to need an additional 1.2 million employees by 2022 and though it has a ready made training programme, the industry needs to channel its knowledge and enthusiasm, as few people understand what the logistics industry is. Speaking at Multimodal 2018 in Birmingham, Nichol says: “Too many people think that it’s about driving trucks and working in sheds, and there are a lot of parents who don’t want their kids to go into that profession.” Chief executive officer of executive recruitment consultant Bis Henderson Group, Andy Kaye says there is an ageing population and the industry does not have the skills to take

it into the future. He says: “25-33 per cent of employees are nearing retirement age while at the same time the logistics industry is one of the fastest-growing sectors of the economy. The way we manage our lives now with e-commerce means that logistics and supply chains support the growth of the wider economy.” Kaye questioned how the industry gets people to understand and says the sector has done very little to attract new talent. He launched the NOVUS programme, an industry led grouping that has organised a series of logistics degree courses in cooperation with Huddersfield University.

AA Cargo named operator of the year AMERICAN Airlines Cargo was named ‘Air Cargo Operator of the Year’ at a glittering dinner held at the VOX at Resorts World at the UK’s National Exhibition Centre at Birmingham International Airport. The FTA Multimodal Awards evening hosted some 800 contenders, VIPs and colleagues. Organisers say the “awards recognise excellence in air, road, rail, maritime, and freight forwarding services.” They are voted

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for by the thousands of readers of the Multimodal newsletter as well as Freight Transport Association members and exhibitors at Multimodal 2018. The field this year consisted of Virgin Cargo, American Airlines Cargo, Air Canada Cargo and Antonov Airlines. The awards 2018 were hosted by Geoff Miller, ex-chairman of selectors for English cricket and took place on the first day of the free-to-attend Multimodal 2018 show.

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NEWSWEEK Virgin granted WDA at Pharma Zone Gatwick goes on recruitment drive

Kennedy

irgin Atlantic Cargo has been granted a Wholesale Distribution Authorisation (WDA) for its global headquarter operations and its Pharma Zone at London’s Heathrow Airport, confirming compliance with Good Distribution Practices (GDP). WDA was established by the UK government’s Medicines and Healthcare Products Regulatory Agency (MHRA), which works closely with the European Medicines Agency (EMEA) and other

regulators including the US Food and Drug Administration. Accreditation cover its headquarters follows handling partner dnata gaining WDA for its Cargo Point operation at Heathrow, which incorporates the Pharma Zone, shared by Virgin Atlantic and its joint venture partner, Delta Cargo. Virgin Atlantic Cargo managing director, Dominic Kennedy says: “We have been listening to our customers and responding to what they want. Wholesale Distribution Authorisation (WDA) was the regulatory compliance they asked us to achieve and now we meet their requirements at both our global headquarters and Pharma Zone. “We can measure our customers’ approval by the increasing pharma bookings they are giving us. We are confident 2018 will be a record year for our pharma and life science business as customers commit to airlines like Virgin which are delivering tangible benefits.”

GATWICK Airport is going on a recruitment drive with more than 1,200 vacancies available, including more than 400 jobs for ground handling agents. The ground handling agent jobs will be with companies providing check-in desk assistance for passengers as well as loading and unloading luggage and cargo onto aircraft for firms including DHL, Menzies, Airline Services, dnata and Swissport. DHL vice president of operations, Spencer Conday says: “We are pleased to be working with Gatwick Airport on our strategy for 2018 recruitment. By combining our efforts we hope to attract the best talent for a number of exciting jobs and career opportunities at the airport and ensure customers continue to receive great service.” Gatwick will attend the East Surrey College

Job Fair on 23 May, alongside 30 other employers based at the airport to showcase the wide range of roles on offer to local people. The airport generates £5.3 billion in GDP and supports over 85,000 jobs at a national level, and it is also a major economic driver in the South East of England, generating 24,000 on-airport jobs and a further 12,000 jobs through related activities.

Crane charters the AN-225

CRANE Worldwide Logistics has chartered the Antonov AN-225 Mriya to transport 223 pallets of chemical drums, landing in Dammam Airport in Saudi Arabia. The aircraft was chartered due to the lack of ocean vessels available, and the Crane Worldwide team co-ordinated cargo from multiple vendors in both Singapore and Malaysia to maximise the load potential of the AN-225. Crane Worldwide Logistics country manager for Malaysia, Daniel Cheah was present throughout, monitoring and surveying the shipment. He comments: “We handle heavy cargo on a day-to-day basis, always looking for the most cost effective and time efficient solution to present to our clients. In this case, the Antonov AN-225 presented the perfect solution and it was a great moment to see this magnificent aircraft land once again in Kuala Lumpur.” Crane Worldwide Logistics managing director for South East Asia, Stefan Gustafsson says: “Seeing the Antonov An-225 for the first time is really impressive. Our technical experts in Malaysia have demonstrated their ability to translate a client’s need into an impressive solution involving the world’s largest aircraft, we are really very proud of their achievements.”

WFS lands Copenhagen deals WORLDWIDE Flight Services (WFS) has picked up new contracts with Air China and Royal Jordanian Airlines at Copenhagen Airport. On 30 May, WFS will begin handling cargo on board Air China’s five Airbus A330 flights a week connecting the Danish capital with Beijing Capital International Airport. It expects to handle around 10 tonnes on each flight, which will depart Copenhagen every Monday, Wednesday, Friday, Saturday and Sunday. At the start of June, WFS will welcome Royal Jordanian as its latest customer in Copenhagen when the airline starts flying Airbus A320s to Amman three times a week. WFS regional vice president, Marc Claesen says: “We have a very efficient cargo operation in Copenhagen and a reputation for meeting our customers’ individual services needs. “This, combined with WFS’ strong network of stations across Europe and the advantages this creates for transit shipments to other destinations, is why we are able to continue to gain the support of leading airlines such as Air China, Cathay Pacific and Royal Jordanian.

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AIR CARGO CHINA PREVIEW

Industry lands in Shanghai for Air Cargo China

he ever-popular biennial event, Air Cargo China is returning to the Shanghai New International Expo Centre between 16 and 18 May 2018. Air Cargo China is organised by Messe Muenchen and is an integral part of transport logistic China. At the last event in 2016, Air Cargo China occupied 5,000 square metres of exhibition space and welcomed 22,000 visitors from 65 countries. This year’s transport logistic China exhibition will once again showcase the entire value chain in one location, creating an environment to create new business relationships. China is a key market for the transport and logistics industry, as it is continuing to upgrade infrastructure including expanding airport facilities around the country. Messe Muenchen say

this is the perfect time to gain a foothold in the market and build on existing contacts, urging companies to “take advantage of this unique opportunity”. The conference will include the ever-popular Air Cargo China Forum.

The Air Cargo China forum will return with industry professionals giving their opinions on various topics. Technology and collaboration will be the focus of this year’s event, with discussions being moderated by MARESCH owner and managing director, Bernd Maresch on each day in meeting room N2-M42.

Is blockchain the answer?

The first session on 16 May, “Blockchain Technology – The Ultimate Way to Increase Transparency, Data Security and Efficiency within Air Cargo?” will discuss the value of blockchain, see some of the first results and find out what skills will be needed from employees in the air cargo industry to manage the technology. The industry longs for real-time information and transparency, along with reducing paperwork, but it remains to be seen whether blockchain is right for air cargo. The first session takes place between 10.30 and 12.00pm on the Wednesday. He will be joined by Lufthansa Cargo head of digital transformation, Boris Huske; Jettainer managing director, Carsten Hernig; Tongji SEM professor of global business and strategy, Ulf Henning Richter; and Brussels Airport Company cargo business development manager, Sara Van Gelder.

Making the right connections

“Interconnectedness” will be the word of the second session on 17 May, where the potential of the Internet of Things (IoT) will be discussed to help optimise fleets and warehouse management, as will the potential of steering drones over IoT technology. Maresch will be joined by ECS Group CEO, Adrien Thominet; Lufthansa Cargo chief commercial officer, Dr Alexis von Hoensbroech; Ranger Aerospace CEO and founder, Steve Townes; IATA regional cargo manager, Lind-

ACW 7 may 2018

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sey Niu; and Turkish Airlines chief of cargo, Turhan Ozen for the session titled “Futurama – The Power of the Internet and Its Resulting IoT Technology is Shaping the Future of the Air Cargo World. Curse and Blessing at the Same Time?” The panellists will also discuss the future of drones and how future cargo air vehicles could affect the industry. They will also ask how the industry’s mindset needs to change and whether drone technology will create a more efficient, safer and transparent world.

Collaboration

Meeting customer expectations can be challenging, but if supply chain partners can collaborate and work together they can share knowledge and improve the services they offer. Community and interest groups have been established, particularly focusing on premium products including pharmaceuticals. For the final session on 18 May, Maresch will be joined by Swiss WorldCargo head of business development and customer experience, Andres Perez; Qatar Airways Cargo senior manager for cargo products, David Beecham; Miami-Dade Aviation Department section chief – aviation marketing, Jimmy Nares; Changi Airport associate general manager – cargo & logistics, Jaisey Yip; Brussels Airport Company head of cargo & logistics, Steven Polmans who is also TIACA vice chairman; and Turkish Cargo special cargo manager, Bahadir Buyukkaymaz. The session, “Collaborations along the Supply Chain and the Rise of Air Cargo Communities: Capable of Meeting the Ever-Rising Transport Needs of Perishables and Pharmaceuticals?” will debate implementing regulations and who resources get allocated. Important questions will be raised about whether it is worth the effort, whether it causes greater fragmentation of the air cargo industry, how to promote real value to promote and solve issues and what is the best way to go.

AIR CARGO CHINA PREVIEW Students put their thinking caps on Prestigious ACW World Air

novel and ground-breaking effort to link academics, experts and future logistics executives with prospective careers in the industry is to be launched at Air Cargo China. Spearheaded by Transport Logistic China organiser Messe München and ULD manufacturer Jettainer, the world’s first ‘Think-A-Thon’ will see some 30 students develop an understanding of Blockchain and how it fits into the logistics industry. Other backers include Medienbüro am Reichstag and Tongji University in Shanghai. The group of 20-something students come from Tongji University’s Chinesisch-Deutsches Hochschulkolleg (Chinese-German University College). They are of Chinese and German nationality. Jettainer head of marketing and PR, Martin Kraemer, says: “This is the first-ever “thinka-thon”, linking academic experts and future logistics executives with the industry. They had to apply as part of their university curriculum and were then selected. “The students will look at the main topic of Blockchain technology and attend lectures about it prior to the event in Shanghai. They have also received a lecture about Jettainer’s business model from me by way of Kraemer

Cargo Awards make a return

a virtual lecture.” The students, of both genders, will attend the event every day to undertake their studies. On day one, they will enjoy a keynote lecture from Prof. Ulf-Henning Richter. After that, they will work on a number of solutions on integrating Blockchain technology into the Jettainer business model. Their work will also involve other logistics industry players such as shippers, forwarders and airlines. “They will interview various executives from the industry during the fair. This will all be accompanied by social media streams,” says Kraemer. Twice a day, industry executives from Jettainer will asset the students in keeping the right direction in order to get to a suitable business case / solution. Kraemer says: “On Friday, the last day, they will present their results in the main forum of transport logistics. This is a great way of showcasing their results to the entire industry.” On the Friday, Kraemer will de-brief participants and organisers. He says: “The whole event is an experiment. There is a huge potential for it to become a regular feature at every fair in future.”

the prestigious Air Cargo Week World Air Cargo Awards will be making a return on Thursday 17 May at the Jumeirah Himalayas Hotel. The ever-popular event will celebrate excellence across the air cargo industry, with awards being given to the best of the best across 10 categories. Awards will be given out for the airfreight fowarder of the year, air cargo handling agent of the year, air charter broker of the year, airport of the year, air cargo general sales agent of the year, air cargo industry customer care award, air cargo industry

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achievement award, information technology for the air cargo industry and airline of the year. The evening will feature a Champagne reception, followed by fine food and wine. A limited number of tickets are still available and will be for sale at the show, subject to availability, so book now to avoid disappointment. Seats cost £125 or £1,000 for a table for 10. Please visit www.worldaircargoawards. com for more information, or send an email to sales@azurainternational.com, or call +44 (0) 1737 645777.

ACW 7 may 2018

ASIA PACIFIC

Rolling with the turbulence, trade maintains altitude

ir cargo traffic growth throughout Asia and on the transpacific picked up again in March following weak growth and a somewhat lethargic pick up after the Chinese New Year (CNY) period in mid-February. But make no mistake the transpacific is as solid as ever, Donald Urquhart reports. The transpacific, perhaps the granddaddy of all the trade lanes, certainly lived up to its reputation last year, particularly during the peak season where the it was Anderson ‘no-holds barred’ on the booming trade

between Asia, China in particular, and North America. And there’s no sign of the let up, with the transpacific continuing to deliver the cargo flows. “We have seen robust production driven by market strength, particularly on exports from Asia, with cargo volumes up over 10 per cent year-over-year, says Delta Cargo director Asia cargo sales, Eric Anderson. “The US economy has kept consumer sentiment at high levels which have contributed to the higher demand for goods produced in Asia, particularly from China, Japan and South Korea.” When one thinks of the transpacific, there is tendency to think Asian carriers, the big maindeck operators and for good reason as they carry the lion’s share of cargo across the Pacific Ocean.

Lau One look at a key US gateway airport, Dallas/ Fort Worth International Airport (DFW), for instance paints this picture very clearly. Among the Asian maindeck operators calling at the airport, the top half-dozen include the likes of (in order of cargo magnitude): Cathay Pacific, EVA Air, Korean Air, China Airlines, Singapore Airlines and Nippon Cargo Airlines. All told, freighter tonnage makes up nearly 80 per cent of DFW’s Asian cargo.

Bellies remain full

But it would be a mistake overlook the vast belly cargo tonnage operated by both these same Asian carriers, as well as the North American carriers, like Delta Cargo out of its Atlanta hub. But over at DFW, in order of contribution, the top transpacific belly carriers serving the Texas hub are: American Airlines, Japan Airlines, Korean Air and Qantas. Belly tonnage comprises nearly 20 per cent of DFW’s Asian cargo and all together, belly and maindeck, Asian cargo represents nearly 25 per cent of DFW’s total cargo tonnage – not a trivial figure. And for these transpacific carriers, last year was indeed a good year, with Delta Airlines Cargo saying 2017 was a “very successful year on the transpacific”. “While demand strength had improved versus prior years, we directly benefited from investments which Delta is making in the Pacific,” says Anderson. These investments include both aircraft, such as the deployment of the carrier’s new A350900 and the launch of new services such as its non-stop Seoul-Incheon to Atlanta in June 2017. “While 2018 has been different than 2017, we think 2018 will be another successful year for Delta Cargo in the transpacific,” Anderson adds. This demand he says is wide ranging with “healthy growth” from across Asia, with Northern Asia demand from China, Japan and South Korea, as well as Southeast Asia. “Our global network allows Delta Cargo to tap into growth as export demand fluctuates across the region.” The transpacific trade for Delta Cargo will get another boost come this July when the carrier launches its new Shanghai-Atlanta non-stop service, which will become the third non-stop

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market between Asia and Atlanta, complementing Seoul and Tokyo. “In addition to these new routes, we will continue to introduce our newest A350 flagship aircraft, which is enabling Delta to carry up to 80 per cent more cargo,” Anderson says. In January 2018, Delta launched its third A350 market, Beijing-Detroit, complementing daily service between Tokyo/Narita-Detroit and Seoul/Incheon-Detroit. In March, it deployed the A350 on Seoul/Incheon-Atlanta, as well as upgraded our Hong Kong-Seattle flight from the A330-200 to the B777-200. In April, it deployed the A350 on Shanghai-Detroit. “Delta continues to make growing investments in Asia-Pacific and we look forward to our customers benefiting from this expanded footprint,” he says.

Growth remains healthy

Meanwhile, on the other side of the ‘pond’, Hong Kong Air Cargo Terminal Ltd (Hactl) also has been enjoying robust transpacific tonnage as part of the industry’s overall sustained growth since the end of 2016. Transpacific volumes have remained healthy when comparing Q1 2018 vs Q1 2017, according to Hactl, which sees nearly 37 per cent of its cargo volumes coming off the transpacific trade. “We believe the strong US economy, strong momentum in international e-commerce and the growing transportation of time- and temperature-sensitive goods such as pharmaceuticals will help to underpin air cargo growth,” says Hacis managing director, Vivien Lau, who is also executive director, Hactl. Indeed Delta Cargo is equally upbeat saying US demand is driving a strong flow of goods from Asia Pacific, specifically IT, e-commerce, machinery and automotive. Anderson notes that Delta Cargo is also seeing growth in Pharma shipments, particularly after receiving IATA’s CEIV certification last year. “Delta Cargo is able to facilitate the shipment of pharmaceuticals through our temperature controlled facilities at Delta Cargo Pharma certified airports utilising either active containers or passive packaging.”

ASIA PACIFIC Premium products fly around the elephant in the room

-commerce is a common thread amongst those involved in the transpacific trade and rightfully so with one of the world’s largest consumer markets showing seemingly insatiable demand for e-commerce products out of China. “The e-commerce business on this lane is becoming increasingly significant and we are just scratching the surface of its true potential,” says DFW Airport VP airline relations, Milton De La Paz. “Cross border e-commerce trade from China in particular has started to make an impact on our cargo volumes, and we are seeing more interest in DFW as a logistics hub for e-commerce shipments. “Domestically e-commerce has grown significantly at DFW and with the airport’s infrastructure, operational capacity and room for further expansion we have demonstrated the ability to efficiently absorb this increase in volume. This growth in e-commerce along with available space to accommodate further expansion in cargo facilities and capacity has generated much interest in DFW for future cross-border e-commerce business on Trans-Pacific trade lanes,” De La Paz says. In Asia, Hactl has been on-point for a number of years with its Hong Kong Air De La Paz Cargo Industry Services Limited (Hacis) subsidiary tapping this segment by moving cargo from the Pearl River Delta region of China to Hong Kong for screening and uplift. “Hacis has been further impacted by its proactive and successful efforts to promote Hong Kong as a fast and cost-effective gateway between Asia and the world for e-commerce traffic – both in bulk, and in individual packages. This has benefited Hactl’s airline customers,” Lau says. One challenge related to e-commerce, however, as Lau highlights, is the fact that traffic is booming, but declarations of individual small package contents are often imprecise. “This could be seen as a concern to aviation security,” she notes adding that Hactl does its best to educate forwarders and their customers about current regulations and what steps they need to take, “but the industry as a whole needs to take this subject far more seriously, before inaction results in the authorities imposing stricter regulations,” she adds. Another interesting development according to Lau, is the fact that it is increasingly common for airlines to arrange charter flights to satisfy short-term demand, and to cooperate via code-

share arrangements to share capacity. Both measures can reduce overall costs and enable carriers to cope better with fluctuating demand, she adds. Perishables has been another big growth area, impacting both sides of the Pacific, with Japan/ Korea and North America perishables tonnages enjoying outstanding growth of 39 and 57 per cent so far in 2018 compared with 2017, Lau says. Japan/Korea, North/South America and South West Pacific account for around 40 per cent of total perishables tonnage. The local market demand for high quality fruit and seafood is helping to boost imports from these regions,” she says.

other countries, as evidenced by its withdrawal from the Trans-Pacific Partnership (TPP). “However, there has been no obvious impact as yet, as both US and China seem to want to take a soft-line approach to resolve their issues;

for the time being, therefore, it’s ‘business as usual’,” Lau says. And while Anderson notes that under normal circumstances, Delta Cargo would expect good growth in 2018 following the 2017 trend, and reaching a similar peak to that of 2017, the threat of a trade war cannot be ignored. “We cannot ignore the possible repercussions of attempts to limit imports to the USA from China. If this becomes a reality, we would expect trade to switch to other routes, but this will take time. “Other markets such as Korea and Japan will continue to grow for their own reasons, but China is still an important source of air cargo, and is still a major factor in Transpacific air cargo,” he says. At least for now, the elephant is sleeping.

Perishables in demand

DFW concurs saying they are seeing increased demand from key Asian markets, most notably Japan, South Korea and China in perishables from Mexico and South America. “Our strategy of connecting transit freight flows between these two regions has started to gain traction since the opening of a new cold chain facility at DFW Airport operated by dnata,” De La Paz says. This growing connection between Latin America and Asia is leading Mexican and Latin American producers and shippers to grow their customer base throughout Asia as demand for perishables continues to rise. “From Mexico and other key exporting countries in South America such as Chile, Argentina and Peru, shipping transit freight bound for Asia via DFW has resulted in lower transit times, increased product shelf life and freshness, and overall lower total landed cost,” De La Paz adds. And of course no discussion of the transpacific could be considered ‘done-and-dusted’ without a nod to the elephant in the room. That being of course, the tit-for-tat trade tariffs being tossed around by the US and China and with them, the threat of a full-blown trade war. For Hactl, this is perhaps the biggest looming challenge on this trade route, alongside what Lau describes as the US’ apparent decreasing interest in international trade treaties with

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02/05/2018 12:26

PHARMACEUTICALS

Pharma.Aero and FlyPharma to collaborate

harma.Aero will collaborate with FlyPharma Conferences for its upcoming events discussing key supply chain challenges affecting pharma and cargo industry stakeholders. The Pharma.Aero community, which aims to foster collaboration between CEIV Pharma certified airport communities is the association patron for all three FlyPharma Conferences and the partnership has gained momentum with the European edition taking place on 5-6 June 2018 in Brussels, Belgium. Pharma.Aero secretary general, Frank Van Gelder says: “The created added value of such a collaboration is the result of both organisations’ focus within the industry. Pharma.Aero supports this principle because it creates a stronger input and a broader focus to deliver quality content conference programs. “Our unique approach as Pharma.Aero, in which we foster cross-industrial cooperation between on the one hand pharmaceutical companies and on the other hand operators and service providers, is the perfect recipe for finding solutions to the industry’s current challenges.”

FlyPharma Europe events director, Angela Cottrell adds: “It has been a pleasure to work with Pharma.Aero and tap into the team’s experience and ideas. I believe this year’s agenda is stronger than ever and am keen to showcase our exciting range of speakers. I’m looking forward to welcoming delegates through the conference doors in June.” The conference will be chaired by former director of QKMTS, Eli Lilly and Company, Rafik H. Bishara PhD. Van Gelder will be speaking at the event along with Pharma. Aero chairman, Nathan De Valck who is also the cargo and logistics product development manager at Brussels Airport Company. Other industry thought-leaders will include IATA head of special cargo, Andrea Gruber; Amerijet International Airlines director of marketing, Christine Richard; Seabury Consulting commercial director, Dirk de Rooij; Brussels Airlines vice president for cargo, Alban Francois; and va-Q-tec regional sales manager, Frans Vriend. Pictured right, FlyPharma Europe 2017 conference at the Sheraton Hotel, Brussels, Belgium.

ABC to use RAP containers

AIRBRIDGECARGO Airlines has been approved to transport pharmaceuticals using CSafe RAP containers for flights on its fleet of Boeing 747 Freighters. The CSafe RAP utilises heating and compressor driven cooling technologies with ThermoCor VIP insulation to eliminate risks to payloads associated with extreme ambient temperature conditions and long duration shipments. The RAP container leverages performance and capabilities of the CSafe RKN to remove operational and environmental challenges encountered with global temperature controlled shipments. CSafe Global senior director partner management, Mark Mohr says: “ABC’s CEIV accreditation further demonstrates their commitment to providing our mutual life-science customers with precision cold-chain services that have been validated to exceptionally high standards.” AirBridgeCargo global director for pharma, Fedor Novikov says: “Partnering with CSafe Global, a company that shares the same customer-centric values and business attitudes as we do, provides ABC with confidence in the preservation and integrity of our shipments, every single time.”

Royal award for Peli BioThermal PELI BioThermal has won the Queen’s Award for Enterprise: International Trade 2018 in the UK. The company is celebrating its second consecutive Queen’s Award win, adding the accolade to last year’s award for innovation for its Chronos Advance. The distinguished honour was awarded for Peli BioThermal’s export expertise; providing the global life sciences industry with thermal protection packaging solutions for the safe transportation of pharmaceuticals. Overseas sales have grown significantly, by 122 per cent over the past three years and 61 per cent of sales is exported for the company based in Leighton Buzzard, Bedfordshire. Peli BioThermal president David Williams says: “It is an absolute honour to receive Royal recognition for our outstanding performance exporting our pioneering products worldwide.” CEO of corporate parent, Pelican Products, Lyndon Faulkner, adds: “I am thrilled that Pelican is receiving the Queen’s Award for a second year in a row. It is an extraordinary accomplishment.” The Queen’s Awards for Enterprise are the United Kingdom’s most accomplished business awards, which recognise and celebrate enterprise excellence. Members of the Peli BioThermal leadership team will be among the winners attending a reception at Buckingham Palace later this year.

aircargoweek.com

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