Acn animals by air june by CAL Cargo

VIP AIR CARGO

Shipping animals by air is a highly specialist niche, Thelma Etim finds Pages 4, 5, 10, 11, 13

HOW TO PROSPER AS A SMALL FREIGHTER OPERATOR

CAL Cargo Air Lines of Israel makes a success of operating two B747Fs Pages 6 and 7

aircargonews www.aircargonews.net

The World’s Best-Read Air Cargo Newspaper

Cathay flies back to top of e-league PRINT

DIGITAL

ONLINE

China shows rest of the world how to do it ATHAY PACIFIC has won back its lead in the global e-freight race, writes Thelma Etim. Latest statistics show that the Hong Kong-based carrier is presently ranked as the airline operating the most e-AWB shipments, according to IATA’s April top-10 league table (see latest chart, right). Cathay’s e-AWB penetration reached 45.7 per cent, overtaking second-placed Emirates’ 28.5 per cent, with Korean Air (21.4 per cent) in third. Global penetration reached 14.3 per cent in April – beating March’s record of 200,000 e-AWB shipments. Top forwarder is DHL Global Forwar-

ding, followed by DB Schenker and Panalpina. Leading origin airports are Hong Kong followed by Dubai – and top countries of origin are China, followed by the UAE, with the USA in third.

Latin America held back by chaos

INADEQUATE airport, road and rail infrastructure is threatening the promising economic growth which Latin America has enjoyed in recent years, writes Thelma Etim. The continent should be building on those gains by augmenting its com-

petitiveness across international markets and global supply chains – but instead is plagued by excessive internal transport and logistics problems. Average freight transport prices for trade between the USA and all its trade Continued on page three

16 JUNE, 2014 | No. 779

Space satellite shipments rocket SPACE satellites have become big air cargo business says heavy metal carrier Volga-Dnepr Airlines. The outsized freighter operator has seen a significant increase in shipments for the aerospace industry, with 22 flights moving space satellites over a 12-week period to the end of May. One of its latest was the Express AM6 from Krasnoyarsk in Russia to Baikonur, Kazakhstan in preparation for its launch later this year. Volga-Dnepr’s An-124-100 freighter, which carried the 25-tonne shipment, also transported support equipment for the satellite, which was protected by a hi-tech container to ensure its optimal cleanliness and temperature. On May 20, a further eight satellites were carried on a single IL-76TD-90VD cargo flight from the Czech city of Pardubice to Yasnyi, the Russian spaceport. Produced in the UK, Canada, Japan, the Netherlands and Spain, they were delivered on behalf of Air Charter Service, a longstanding customer and are scheduled to be launched onboard a rocket called ‘Dnepr’. Andrei Rassadkin, regional sales director of Volga-Dnepr Airlines, reveals that from March to the end of May the airline operated 22 satellite flights, including six in May carrying a total of 14 satellites. “We see significant growth in this industry, which is fast-growing and dynamic, and the manufacture of space satellites is increasing as the number of launches and spaceports being built increases,” he says.

100% SCREENING

Why it won’t work AMERICA’S controversial plan to require 100 per cent pre-screening of ocean containers arriving at its seaports looks doomed to failure as forwarders point out the flaws in the project Page 3

KING OF THE JUNGLE

How to ship a lion

KENYA AIRWAYS flew a lion called Simba from Amsterdam’s Schiphol Airport to Lilongwe Wildlife Centre in Malawi. A roaring success? Find out on . . . Pages 12 and 13

US CARRIERS . . 1

Delta Cargo moves closer to passenger DELTA Air Lines Cargo is to move closer to its passenger division. It comes with the news that charismatic cargo leader Tony Charaf is to retire Page 3

US CARRIERS . . 2

Robbie Anderson leaves United Cargo ROBBIE ANDERSON has left his post as the head of United Cargo. No reason for his departure has been given by the airline Page 3

Welcoming Intradco to the Chapman Freeborn Group

Global Leaders in Animal Transportation Equine | Livestock | Exotics CF intraco 262x65.indd 1

ACN_779_1-16.indd 1

Turn to page 4 to find out more… 10/06/2014 12:20

12/06/2014 12:23

4 Animals by Air

AIR CARGO NEWS | 16 JUNE 2014

From day-old chicks to racehorses: a job

ITH profit margins and yields continuing to be unsatisfactorily low, air cargo operators are increasingly diversifying into other areas. Animals transportation appears to be among the growing verticals, writes Thelma Etim. Although the contribution (percentage) to overall annual revenues can be as low as four or five per cent, specialist animal shipments are seen by some within the air cargo industry as a sector that can proffer reliable repeat business – handled with care. However, the complexity, expertise and high risks involved, along with the huge investment required in shipping live animals, make it a less attractive option amid continuing volatile market conditions.

Horses for courses

Earlier this year, livestock and bloodstock transport specialist Intradco, along with forwarder National Air Cargo, shipped 47 horses from Dubai World Central (DWC) to Ostend in Belgium. The chartered B747-428 (BCF) made use of DWC’s newlyintroduced horse loading ramp. The loading process was adjusted by three hours, so that when the horses arrived at the airport it was 4am in the morning – the coolest time of the day. The aircraft was ready to depart at 7am. Intradco’s director Eddie McMullen is an ‘old hand’ at transporting animals, with some 35 years’ experience. Over the years, the UK-based company has successfully developed nine different types of specialist horse stalls, which can be used on a number of aircraft ranging from B747s and MD-11Fs to

Global Leaders in Animal Transportation Equine | Livestock | Exotics +44 (0) 1293 572 872 enquiry@intradco-global.com www.intradco-global.com Intradco is a Chapman Freeborn company.

Intradco 250x172mm.indd 1

ACN_779_4-5.indd 4

Charlie McMullen Global sales and development manager at Intradco

AN-12s. It also has a variety of pens for livestock. Intradco’s global reach is expected to grow under the umbrella of big aircraft charter firm Chapman Freeborn, which acquired it last year. Flying pigs from Europe to Manila, and 247 deer from the United States to Russia are among other recent notable operations for Intradco. Charlie McMullen, global sales and development manager, warns that there is no simple tried-and-tested formula for pulling-off successful shipments. “Moving animals by air successfully is based on lots of past experience – you have to have hands-on knowledge of how to actually operate these services. You also have to consider things like transporting the stalls when they are not actually being used,” he adds. “For example, do we invest in disposable stalls, or in reusable equipment that can be utilised on different charters?” Also, the correct number of grooms accompanying the horses can be a deal-breaker in arranging such a flight. “We want to carry the maximum number of grooms on our flights, but many carriers now offer spaces for two or three grooms only, which would not even be an option for us, particularly when you are carrying 90 horses.”

10/6/14 12:46:50

12/06/2014 12:25

Animals by air 5

Aeroports de Lyon Half P Vert 128x36520/05/14 :Layout 1

AIR CARGO NEWS | 16 JUNE 2014

3/6/14

06:01

Page 1

G further

The Airport Agency France. Aeroports De Lyon ‘ALL GO’_Half page - Type Area - 128mm x 365 mm (3/06/14)

Having professional experts on board is crucial for dealing with any issues that may arise during the flight, he stresses. “A lot of our grooms have been accompanying flown animals for more than 20 years, so if a horse starts to act-up, the handlers on board know exactly how to tend to it and rectify the situation. We also have vets on board that can administer medication as a precaution – but that does not happen often.” Charlie McMullen believes that some airlines are inadvertently eliminating themselves from being considered for horse shipments, simply because they have too few seats for the grooms. “This can be due to any modifications that the aircraft has undergone. For example, an Emirates B777F has nine groom seats, which is a good number. So, even when some carriers offer a better

price, we would still go with the one that has more seats, because we want the maximum number of grooms. “Often its mandatory for our shippers: they may demand that five of their best horsemen/women are on the flight.” Although handling errors for animals shipments are rare – with strict regulations and guidelines, the margin for error is usually miniscule – yet there are some organisations which do not pay serious attention to detail. “With all livestock and, especially racehorses, if you don’t have the experience, you get found out extremely quickly,” he warns. Local knowledge also plays a major part in transporting exotic animals, such as lions. “There are a lot of airlines, which do not want to conduct animals’ flights. When we’ve asked them why, they say it is because years ago

they dealt with an inexperienced partner and there were a number of casualties on the flight,” he reveals. Shippers can also be taken in by less experienced operators in this sector. “If you’re a shipper trying to locate the right service provider, it is probably quite difficult to figure out who is reliable and who is not. You may get your fingers burnt before you find out. But then, word of mouth is powerful in this business and we tend to deal with a lot of the same clients.” Intradco can usually identify the more dubious enquiries. “We know instantly that some requests are just a waste of time due to the number of vital factors those enquirers do not even consider. They ask the wrong questions – nothing about safety, the types of stalls, the time of day for loading etc – instead, everything is pricefocused.”

bon dioxide – a must for the welfare of animals transportation – dual temperature trailers and ground handling experts are on site (airside) to enhance the smooth flow of CAL’s animal transportation operations. Since its inception, the small Israeli all-cargo specialist has benefited greatly from implementing a core strategem that carefully exploits such niche markets. Animals ranging from thoroughbred racehorses and showjumpers, a giraffe, sheep – and even 900,000 pestcontrol bees – can be loaded on board any of its daily B747 freighter flights. CAL’s marked success with livestock shipments includes recent major sporting events, such as The Kentucky Equ-

estrian World Cup and the Longines Global Champions Tour. “We operate six flights a week from Liége to JFK and we can carry between three to six horses on each of these flights,” Marom explains. The horses can be worth up to €2-3 million. Not surprisingly, they receive VIP treatment. “We put them in a special lounge and before they are loaded separately, special flooring is put down, so they do not slip,” Marom explains. Yossi Shoukroun, chief executive of LACHS, recalls a big project. “In 2009, we had to transport 600 horses to Kentucky within two weeks on 22 flights, so we built a special terminal for them Continued on page 11

only for the experts

Super CAL is fragilistic

URCHASING Liége Air Cargo Handling Service (LACHS) and then becoming its principal client was a smart move, which has served Cargo Air Lines (CAL) well. Strategically located at Belgium’s Liége Bierset Airport, the ground handling company’s infrastructure allows animals to be loaded and unloaded speedily and expertly, so exposure of these fragile, living air cargo shipments to temperature and environmental deviations is minimal, says Rami Marom, chief operating officer and vice–president of ground handling at CAL. With close scrutiny of temperature and humidity levels, along with monitoring the concentration of car-

ACN_779_4-5.indd 5

All Go round the clock cargo solutions. Servicing the whole supply chain. Ambient and cold storage. Flexible solutions. Go to: cargoport.lyonaeroports.com

12/06/2014 12:25

animals by air 11

AIR CARGO NEWS | 16 JUNE 2014

Cattle-class, with added VIP benefits

Even lobsters receive special care From page five and they had the same treatment a passenger might receive.” LACHS invested in a special loading ramp for the operation. Marom observes: “Moving live animals is subject to specific temperature control and carbon dioxide limitations. Therefore specialist equipment is required – whether it’s collapsible, or non-collapsible stalls for example. And, of course, the operation needs to be carried out very, very fast – with minimum tarmac time.” Eyal Zagagi, overall chief executive of CAL, believes the carrier’s recognised expertise in animals transportation has helped to differentiate it from larger competitors. “The more complex the shipment is, the better it is for us. Animals [shipments] are one of our top three specialities. We are actually doubling our activity in this area year-on-year.” Another of CAL’s recent successes has been in moving lobsters (25-to-40 tonnes on each flight) from Canada to the Far East and to Europe. The airline now plans to launch weekly services. “This requires fast transaction due to the fact that the lobsters are alive in water. There is a great potential [in this vertical market] which we would like, of course, to further exploit,” Marom admits. CAL has also flown exotic (pet) fish to the Far East, as well as ‘It’s about cattle and sheep from Belgrade to making sure Tel Aviv. “We are the only carrier using triple-deck, collapsible pen- the animals are ning systems, so we can carry more picked up on on one flight than others can.”

Needed: specialist forwarders

time, delivered on time and don’t have to wait around anywhere’

THE FORWARDER is a crucial piece of the animal transportation supply chain puzzle, connecting all of the logistical parts of the operation, end-to-end. Any breakdown in communication, or even miscommunication will inevitably lead to an oversight that inadvertently puts the welfare of the animals in jeopardy. Maybe that is why Ben Dinsdale, assistant director of London Cargo at Air Charter Service (ACS), believes there is a role in the air cargo industry for forwarders that specialise in these types of shipments, where every minute wasted and degree centigrade lost, or gained can be the deciding factor. “The forwarders are the people that put all the bits together and it’s where those links fall apart that you get the problems,” he observes. “Making sure the animals are picked up on time, delivered on time and don’t have to wait around anywhere for too long is the difference between whether or not they arrive at their destination in a healthy condition. That’s why the freight forwarder is hugely valuable in the chain.” The global aircraft charter specialist works very closely with a select band of airlines and customers on every detail of an animals charter, such as how to have horse stalls constructed for the particular aircraft selected. Over the years, ACS has arranged flights for a wide variety of animals, including dolphins, cows, pigs and lions. But it is very common for Dinsdale to regularly oversee charters for day-old chicks which, over the last couple of years, has become an incredibly competitive market segment, he notes. The average number for a consignment of chicks is 20,000. They are usually shipped on smaller aircraft, such as ATR 42s, Continued on page 12

ACN_779_10-11.indd 11

TAP_AirCargoNews_v1.indd 1

14/05/2013 17:29

12/06/2014 12:27