C and L

DELIVER Y O N DEM A ND T H E E -COM M E R CE W AY Volume IV n No 1

MARCH 2015 I `60

C A R G O

L O G I S T I C S

HEAD TO

HEAD

FedEx and a few others have refused to join the battle for the skies that is being waged by the US’ big three carriers against the Middle East’s Big Three.

‘THERE IS A REVOLUTION GOING ON…’ An air cargo optimist, Tony Tyler, IATA’s Director General and CEO, admitted at the recent World Cargo Symposium in Shanghai, that the last few years had indeed been very difficult for the industry. It was now time to go forward

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MANAGING EDITOR’s NOTE

Open and shut case?

T

he recent Open Skies spat has brought to the fore a significant revelation: not only does protectionism exist but it is alive and kicking. Revelation because the great USA has always been viewed as the country of opportunity where one needed to work hard to make it to the top. And, the fact that the big American carriers want their government to practice protectionism goes against the grain of all that stands for the US. Protests have been lodged and leading the charge is FedEx. FedEx Express President and CEO David Bronczek made his views quite clear: “Our view is very simple. We believe in Open Skies and free trade, and we’ve been doing this for decades now.

We base our whole business model on … Open Skies. We have a lot of business in the Middle East, a lot of business in Asia, and around the world. And of course for us, competing in an Open Skies environment is critical for us.”

Many have pointed out that open skies were an absolute necessity because such a policy would benefit everyone. In fact, Open Skies kept people flying wherever cargo needed to go.

Some experts felt that the top three Middle East carriers were not growing because of subsidies — as the American Big Three legacy carriers have alleged — but the growth was because of cargo.

Pointing to Asia, these experts also mentioned that the number of fliers have grown with the maximum coming from the region.

This has added to the increase in aircraft with belly capacity and today, the widebody aircraft on order is estimated to add belly space that will be equal to 450 777Fs. Nearer home, studies have been done to quantify the cost and benefits of implementing the ASEAN Open Skies policy, which will be effective this year. This multi-lateral framework will liberalise and invigorate the regional market for aviation, directly impacting 10 countries in ASEAN and indirectly impacting the whole market in Asia Pacific.

Mott MacDonald produced analysis to demonstrate the impacts on the national air travel industry as a consequence of ASEAN Open Skies, and benchmark it against the experience of other liberalisation regimes in Europe and the United States.

This highlighted the positive effects of aviation market liberali-

sation and estimated the direct and indirect economic benefits to the nation of such a policy. The study estimated that Open Skies would account for around $2.7 billion in additional direct GDP and an additional 16,000 direct jobs in 2025. If indirect and induced effects were included these differentials increased to around $5.7 billion and 29,000 jobs in 2025.

The world will await the decision of the US government but it would be worthwhile to mention that in India too, the demand for Open Skies has found many takers. The Association of Private Airport Operators (APAO), the apex Industry Association of the Major Private Airports in the country — Mumbai, Delhi, Bengaluru, Hyderabad and Kochi — sent out recommendations to Civil Aviation Minister A Gajpati Raju to liberalise air traffic rights. The aim: to encourage growth. The note said: “To encourage passenger/cargo traffic liberal bilaterals should be encouraged with no restrictions, similar to the USA policy”, APAO wrote quite some time ago.

So, whose side are we on? Our leaders realised way back in the 1980s, that though the economy grew at over 5 per cent annually, there were shortages of international air cargo capacity. That became a key obstacle for exporters. Following the announcement of the government’s industry-wise ‘economic disengagement’ policy in 1990, the Air Cargo Open Sky Policy was adopted initially for three years and later permanently. Under this policy, any airline, foreign or domestic, that met certain operational and safety requirements, was allowed to operate scheduled and unscheduled cargo services to or from any Indian airport with customs facilities. Today, the policy still holds good but what is significant is that while the Open Sky policy has allowed foreign carriers to fly in and out, no domestic airline has been able to take off with cargo for foreign shores. It is time to sit up and move. The situation on the ground is improving – ever so slowly. We will keep you informed.

Till then, keep reading and keep in touch!

tghosh@newsline.in

Cargo & Logistics I March 2015

3

contents ARTICLES NEWS VIEWS EDITS INTERVIEWS CLIPPINGS PROFILES NEWS DIGEST STATISTICS COLUMNS

CONTENTS

C&L

VOLUME IV n NO 1

Editor-in-Chief

K SRINIVASAN Managing Editor TIRTHANKAR GHOSH

IATA

Consulting Editor RAMESH KUMAR

COVER STORY

p14

At this year’s World Cargo Symposium held in Shanghai, the International Air Transport Association (IATA) identified three vital aspects of the air cargo industry where further action is needed in order to recapture some of the lost market share from the ocean shipping and rail freight sectors.

SPOTLIGHT

p22

Open Skies has created a warlike situation between the airlines of the US and Middle East. US passenger carriers have questioned Open Skies, specifically as it relates to Middle Eastern carriers.

RESEARCH

p26

The desire for convenience, flexible delivery and payment options and a seamless experience across channels continue to dominate for consumers worldwide, according to a study conducted by comScore on behalf of UPS.

Sr. Proof Reader RAJESH VAID Correspondents ANJANA TANWAR, NAVEED ANJUM, CHARCHIT SINGH Designers NAGENDER DUBEY, MOHIT KANSAL Picture Editor PRADEEP CHANDRA

Form IV (See Rule 8) C&L 1. Place of Publication : New Delhi 2. Periodicity of Publication : Monthly 3. Printer’s Name : K. Srinivasan Whether Citizen of India? : Yes (If foreigner, state the : Not Applicable country of origin) Address : 4C Pocket-IV, Mayur Vihar, Phase-I, Delhi-110091 4. Publisher’s Name : K. Srinivasan Whether Citizen of India? : Yes (If foreigner, state the : Not Applicable country of origin) Address : 4C Pocket-IV, Mayur Vihar, Phase-I, Delhi-110091 5. Editor’s Name : K. Srinivasan Whether Citizen of India? : Yes (If foreigner, state the : Not Applicable country of origin) Address : 4C Pocket- IV, Mayur Vihar, Phase-I, Delhi-110091 6. Name, Address of : 1. Renu Mittal 2. K. Srinivasan 4C Pocket-IV, Mayur Vihar, Phase-I, Delhi-91

TO OUR READERS

I, K. Srinivasan, hereby declare that the particulars given are true to the best of my knowledge and belief.

This issue of C & L does not contain ‘Traffic handled at Major Ports’ bcause the statistics was not released by the Indian Ports Association

Date: 1st March, 2015

Senior Sub-Editor-cum-Reporter PUNIT MISHRA

Sd/K. Srinivasan Publisher

Photo Editor HC TIWARI Staff Photographer HEMANT RAWAT Director (Admin & Corporate Affairs) RAJIV SINGH Vice President (Business Development) VINOD KAUL Subscription ALKA SHARMA Distribution PANKAJ KUMAR, BHUSAN KUMAR Executive Director RENU MITTAL For advertising and sales enquiries, please contact:

+91-9810030533, 9810159332 Editorial & Marketing office: News Kingdom Media Pvt. Ltd., D11, Nizamuddin Eest New Delhi –110 013, Tel: +91-11-41033381-82 All information in C&L is derived from sources we consider reliable. It is passed on to our readers without any responsibility on our part. Opinions/views expressed by third parties in abstract or in interviews are not necessarily shared by us. Material appearing in the magazine cannot be reproduced in whole or in part(s) without prior permission. The publisher assumes no responsibility for material lost or damaged in transit. The publisher reserves the right to refuse, withdraw or otherwise deal with all advertisements without explanation. All advertisements must comply with the Indian Advertisements Code.

The publisher will not be liable for any loss caused by any delay in publication, error or failure of advertisement to appear. Owned and published by K Srinivasan 4C Pocket- IV, Mayur Vihar Phase–I, Delhi–91 and printed by him at Nutech Photolithographers, B–240, Okhla Industrial Area, Phase–I, New Delhi–110020.

Cover Design: Nagender Dubey

4

March 2015 I Cargo & Logistics

GAC Logistics Pvt. Ltd. One Company All Solutions • Air Freight • Ocean Freight (FCL/LCL) • Export and Import Consol • Custom Clearance • Project Cargo • Warehousing (Bonded and Normal) • Distribution

Head Office (DELHI) GAC Logistics Pvt. Ltd. B301, Ansal Chamber-I, 3 Bhikaji Cama Place New Delhi - 110 066 Tel: +91 11 26160470/71/72, +91 11 43439999 Fax: 91 11 26160473/26178196 Mob: +91 9711856949 (for Import) +91 9899701132 (for Export) Email: info@gaclogistics.in Website: www.gaclogistics.in

Branches: New Delhi * Mumbai * Bengaluru * Chennai * Hyderabad * Kolkata * Jaipur * Visakapatnam * Coimbatore * Kanpur * Lucknow * Panipat

Multimodal Transportation Logistics

JUST IN TIME

SLOW START FOR AIR FREIGHT IN 2015

T

worldwide January air cargo volumes were up 3.2 per cent year-over-year (YoY). It observed that the modest increase was not too bad given the fact that January 2014 was already part of the recovery that started in autumn 2013.

World ACD, which sources data from airlines, stated: “In any highly-cyclical small-margin business a drop in unit revenues of almost 11 per cent year-over-year (YoY) and of 8.5 per cent month-overmonth (MoM) would make all alarm bells ring. In the first month of 2015, such a drop in unit revenues — in this case revenues per kg, measured in US$ — is exactly what happened to the worldwide air cargo business. Yet, we maintain that alarm bells can remain silent, for three reasons.”

World ACD believes that almost twothirds of the yield drop was caused by decreasing surcharges, adding that it was perhaps a surprising development for all those who referred recently to what they called anecdotal evidence that surcharges have not come down. It continued: “The reason behind this decrease would seem to be good news for everyone involved, with a possible

TREND

KLG INTERNATIONAL

he International Air Transport Association (IATA) released data for global air freight markets showing a 3.2 per cent expansion in freight tonne kilometers (FTKs) in January 2015 compared to the same month last year. The growth is slower than the average of 4.5 per cent recorded for 2014. There was much regional variation in the January performance.

Asia-Pacific, African and Middle Eastern airlines expanded strongly, but airlines in Europe and North and Latin America all reported demand contractions.

“Although it is too early to be certain of a trend towards weaker air freight, there are at least two emerging factors which could negatively impact demand for air cargo in the coming months. Business confidence has been declining since mid-2014 and export orders tailed-off towards the end of the year and a reversal of the positive trade-to-domestic production ratio which boosted cargo volumes last year,” IATA said. “January was a disappointing start to the year for air cargo. And it is difficult to be too optimistic about the rest of the year given the economic headwinds in Europe

STEADY START: After 2014 ending on a positive note, Air Cargo industry saw a slow start in 2015

and growing concerns over the Chinese economy. Add to that the continuing trends of on-shoring production and trade protectionism and 2015 is shaping up to be another tough year for air cargo,” said Tony Tyler, Director General and CEO, IATA. Netherlands-based consultancy World ACD also released its report saying that

6

March 2015 I Cargo & Logistics

exception for the oil companies. A second element in the US$-yield decrease was the deteriorating exchange rates of virtually all currencies against the dollar. “Lastly, there was the usual effect of January showing lower yields than December: minus 4.4 per cent in January 2013, and minus three per cent in January 2014.”

FedEx, the worldwide provider of transportation, e-commerce and business services, recently announced the launch of its Access digital magazine app. “At FedEx, we’re constantly monitoring changes in customer needs and analysing economic trends across the globe. We have harnessed that knowledge in Access — our thought leadership platform that fuels important conversations about trends impacting business,” said Raj Subramaniam, EVP Global Marketing and Communications, FedEx adding that a more open and connected world made it easier for business to prosper.

The Access app was launched with this year’s Access 25, a list of 25 people, places and ideas defining global connectivity. This year’s theme — The Crossroads to Everywhere —examined the intersection between virtual and physical networks via three megatrends: supercharged innovation, explosive growth and competition, and shifting economic power. This year’s edition also featured a broad range of articles on topics like smart cities, unbanking, botsourcing, the circular economy and more. “FedEx helps businesses build stronger supply chains in more than 220 countries and territories, putting us in the unique position of being able to share these stories and trends,” Subramaniam added.

In addition to the digital app and an annual print magazine, Access also features monthly online articles that celebrate the opportunities that a more connected world provides. The Access app, available for iPad, Kindle Fire and Android devices, is a digital version of the print magazine. It offers readers more interactive features designed specifically for tablets and Android smartphones, including videos and dynamic slideshows.

JUST IN TIME

NEW PERISHABLE CENTRE AT BIAL

DREAMING HIGH: An artistic impression of AISATS Perishable Centre

A

ir India SATS Airport Services Pvt. Ltd. (AISATS) recently held a ground-breaking ceremony for Bengaluru’s first fully dedicated perishable cargo handling centre, the ‘AISATS Coolport’, at Kempegowda International Airport. The event was inaugurated by Kaushik Mukherjee, Karnataka Chief Secretary. The new facility will enhance Karnataka as the pharmaceutical, biotechnology and perishable hub of India.

Once completed, this 40,000 tonne AISATS Coolport will cater to a wide range of commodities such as pharmaceutical products, fruits, vegetables, flowers. The facility will be equipped with a drug controller lab testing facility, separate ripening zone, land-side truck-docks, warehousing and re-distribution centres, cold room facilities with different temperature zones and a testing facility as per Plant Quarantine requirements for EU and US bound shipments. In addition, the state-of-the-art AISATS Coolport will also have humidity-control and temperature monitoring facilities.

“Many of us in the air freight industry have been speaking out on the need to have adequate infrastructure to support the ambitious plan by the Government to promote and grow the air cargo industry in India,” said Willy Ko, CEO, AISATS. “It is undisputable that India will have tremendous

growth potential in its air cargo sector, especially so springing from the ‘Make-In-India’ initiative by the Government.”

“Today, the ground breaking ceremony of the Perishable Cargo Handling Centre at AISATS is a validation that our partners are in sync with our commitment and continue to explore new ways for seamless cargo operations. We firmly believe new logistics that redefine the cargo business will propel us closer to our vision of being the Cargo Gateway to South India” said G V Sanjay Reddy, Managing Director, BIAL.

2014 SUCCESS SETS THE PACE

R

ecent e-AWB update for February states that the successes of 2014 established a solid platform for the industry to reach the 45 per cent target of 2015. Collaboration across the industry brought about a positive push throughout 2014.

“In January 2015, e-AWB global penetration stands at 24.9 per cent. In order to successfully reach our challenging 45 per cent target for 2015, we need to draw inspiration from and replicate such collaborative efforts in other regions of the world. So, the strategy for 2015 is to

TOP E-AWB PERFORMERS

focus efforts to drive e-AWB adoption at 50 e-AWB capable airports or e-Airports.

These are key airports where e-AWB has been implemented by some of the airlines and proven feasible, however more coordinated efforts are required to drive further adoption. It includes key cargo hubs in BRIC countries recently opened for e-AWB such as Pudong International Airport (PVG) in Shanghai, Indira Gandhi International Airport (DEL) in Delhi, Chhatrapati Shivaji International Airport (BOM) in Mumbai and Viracopos-Campinas International Airport (VCP) in Campinas, Sao Paulo State, Brazil,” it added. % e-AWB Penetration

% Growth month over month

United Arab Emirates

72.7%

1.6%

India

36.7%

1.0%

USA

22.8%

0.8%

Singapore Airlines

41.4%

1.7%

Delta Air Lines Inc.

49.6%

1.7%

Dragon Air

70.6%

1.3%

DGF-DHL Global Forwarding

33.4%

1.1%

Panalpina

35.8%

0.5%

Schenker

32.9%

0.4%

COUNTRY/LOCATION

AIRLINES

FREIGHT FORWARDERS

Cargo & Logistics I March 2015

7

FOCUS

AAI boosts

Connectivity A

irports Authority of India (AAI) came to existence on April 1, 1995. AAI has been constituted as a Statutory Authority under the Airports Authority of India Act, 1994. It has been created by merging the erstwhile International Airports Authority of India and National Airports Authority with a view to accelerate the integrated development, expansion and modernization of the air

traffic services, passenger terminals, operational areas and cargo facilities at the airports in the country. AAI is a Mini Ratna – Category I PSE. The main functions of the Authority are: Control and management of the Indian air space (excluding special user air space) extending beyond the territorial limits of the country as accepted by

H C TIWARI

Air Cargo is top priority for AAI: Chairman R K Srivastava Air Cargo is integral to the growth of the nation and the Airports Authority of India (AAI) has been pioneering the development of international cargo operations in the country resulting in active international cargo operations at various metro and non-metro airports as a result of which; today civil aviation is looking forward to develop multiple cargo hubs in the country.

India is now poised to take a big leap in manufacturing, development of infrastructure and e-commerce for which logistics plays a vital role. Understanding the need for rising to the occasion, AAI is now ready to take a lead in developing domestic air cargo in the country. We are already in the process of developing 24 domestic airports for Common User Domestic Cargo Terminal, which will facilitate to exploit the full potential of domestic cargo. This process will be further accelerated through focused approach for developing more and more domestic cargo operations in the coming days.

AAI is also planning to take up the development of international air cargo operations in Tier-II cities with catchment areas to facilitate the cargo movement on the doorstep of its customers. This would include bonded truck operations connecting multiple cities. AAI is always focused towards its commitment for air cargo development with continued support of esteemed stakeholders.

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March 2015 I Cargo & Logistics

ICAO. • Provision of Communication, Navigational and Surveillance Aids.

• Expansion and strengthening of operational areas viz. Runways, Aprons, Taxiways, etc. and provision of ground-based landing and movement control aids for aircrafts and vehicular traffic in operational area.

• Design, development, operation and maintenance of passenger terminals.

• Development and management of cargo terminals at international and domestic airports.

• Provision of passenger facilities and information systems in the passenger terminals.

AAI owns and maintains 125 airports comprising 68 operational airports, 26 Civil Enclaves, i.e. Civil Air Terminals at Defence-controlled airports where AAI handles civil flight operations and 31 non-operational airports.

In addition, AAI provides Air Navigation Services (ANS) at all civil airports in the country. AAI manages the designated Indian air space measuring 2.8 million square nautical miles which includes land area measuring 1.05 million square nautical miles and oceanic airspace measuring 1.75 million square nautical miles. Air Navigation Services are also provided by the AAI at nine other airports that are not managed by AAI namely Bengaluru, Hyderabad, Cochin, Lengpui, Diu, Latur, Mundra, Nanded and Sathya Sai Puttaparthy Airports, which are joint venture airports, State Government owned airports and private airports.

The Authority continued with its mandate of creating more airport infrastructure and navigation infrastructure across the length and breadth of the

FOCUS

nation. Recently, new terminal buildings were commissioned at Chennai, Kolkata, Raipur, Ranchi, Bhubaneswar, and Puducherry airports.

Development of Airport Infrastructure Passenger traffic, having witnessed a phenomenal surge in the last decade has placed the Indian civil aviation sector on a high growth trajectory: increasing from 37.0 million in 1995-96 to 168.92 million in 2013-14. This surge in traffic has led to congestions at major airports affecting air safety and operational efficiency.

To enhance airport infrastructure in India, modernization of existing airport infrastructure in metro and non-metro cities and construction of Greenfield airports were contemplated to bridge the gap between the available airport capacity and the projected demand. Resources being limited, strategies were evolved to augment and create airport capacity ahead of demand schedule at busy airports in an optimal manner by leveraging technology and adopting best management skills and practices including private sector participation in upgradation of airport infrastructure at airports in Delhi and Mumbai.

AAI has completed expansion and upgradation of two metro airports at Kolkata and Chennai Airports at the cost of Rs.2324 crores and Rs.2015 crores, respectively. Annual cargo handling capacity and efficiency of operations at Chennai Airport has been augmented to handle 11 lakh MT of cargo with the construction of new modern Import Cargo Complex equipped with Automatic Storage Retrieval System at a cost of Rs.144 crores.

Development of selected 35 non-metro airports has been undertaken by AAI which are identified based on the regional connectivity, development of regional hubs, places of major tourist attraction and potential for development as business hubs. Projects at 32 airports have been completed. In the current financial year (FY 2013-14), new terminals have been commissioned at Chennai, Kolkata, Bhubaneswar and Ranchi airports and development at New Civil Enclaves completed at Bhatinda,

Jaisalmer and Bikaner. Thus, AAI has amply demonstrated its commitment and expertise in creating world class infrastructure at our airports. All our major airports with impressive land mark terminals having state-of-the-art facilities are the gateway to economic of the city of their location.

In line with the green building concept, utilization of renewable sources of energy and for sustainability, Solar Photo Voltaic Power Plants have been commissioned at Rajiv Gandhi Bhawan, New Delhi, airports at Raipur, Jaisalmer and Guwahati and work is awarded for Bhopal and Indore Airports.

Development of 50 No Frills Airports In order to improve the regional and remote area air connectivity, particularly in Tier-II and Tier-III cities, the Government of India has decided to construct airports in cities based on criteria like population, economic growth and tourism potential. MoCA has listed out 50 numbers of airports/airstrips to be developed.

Since the scale of operations in these airports is going to be far less than the metro airports, particularly in the initial

years, it would not be financially viable.

Hence it has been proposed to construct ‘No Frills Airport’ in the selected Tier-II and Tier-III cities.

The overall concept taken for this type of airport is that it shall be of less constructing and operating cost for airport operators, less operational cost for airlines by providing incentives in operating tariffs and of low ticket charges for the passengers. With the expected scale of operations, these airports cannot be commercially viable. Hence, Viability Gap Funding and support by Central and State Governments as well as by other stakeholders are required. The State Governments shall provide the requisite land free of cost and free from all encumbrances as well as to provide Security and Fire amd Rescue services free of cost. .

In the meantime, based on the availability of land, MoCA (Ministry of Civil Aviation) has shortlisted five from the 50 airports to be constructed as No Frills Airports in this year viz. Belgaum and Hubli in Karnataka, Kishangarh (Ajmer) in Rajasthan, Jharsuguda in Orissa and Tezu in Arunachal Pradesh.

Cargo & Logistics I March 2015

9

NUMBERS

`2,500 7 CR RAIL PROJECT APPROVED

ä

The East Corridor Railway project, worth around `2,500 crore, has received an in-principle approval from the CIL board during the last board meeting.

The project will facilitate movement of passengers as well as freight (primarily coal) from Chhattisgarh. Around 180 kilometer (km) long East Corridor will take the route — Kharsia-Chhal-Gharghoda-Korichhapar-Dharamjaygarh-Korba — and connect mines of Gare-Pelma block.

The project will be developed by Special Project Vehicle (SPV), Chhattisgarh East Rail Ltd and South Eastern Coalfields Ltd which holds its 64 per cent stake, while Indian Railways promoted IRCON has 26 per cent share and Chhattisgarh government has 10 per cent. Three critical railway lines in Chhattisgarh, Odisha and Jharkhand will increase coal evacuation by 200 million tonne over the next several years.

$140

BIDDERS VISIT CHENNAI AIRPORT

ä

The modernisation plan of Chennai Airport is expected to be started very soon as representatives from seven companies bidding for Operation, Management and Development of Chennai Airport in Public-Private Partnership (PPP) mode visited the airport, according to an official press release. The representatives were from Siemens Project Ventures GmbH, GVK Airport Holdings, GMR Airport Holdings, Egis Avia, Celebi Aviation, Tata Realty and Infrastructure Limited, Pithavadian and Partners and Flemingo Intl Limited, the release said.

Meanwhile, the airport employees union has been opposing the privatisation move on the grounds that there was no point in doing so when the Airports Authority of India (AAI) had spent over `2,000 crore to upgrade the airport. Earlier, AAI invited local and international firms to operate, manage and develop airports in Chennai, Kolkata, Ahmedabad and Jaipur.

MN HUB BY DHL

ä

DHL Express recently unveiled the blueprint of DHL Express South Asia Hub, a 24hour express hub facility located within Changi Airfreight Center at Singapore Changi Airport. The new facility with a total investment of $140 million, the largest infrastructural amount invested by DHL Express in Singapore, will support regional businesses operating in and out of Singapore for DHL. Occupying a land area of 26,200 square metres and a total floor area of 23,600 square metres, Hub features the first fully automated express parcel sorting and processing system in Singapore and South Asia. Once completed, the facility will be able to handle a cargo throughput of more than 628 tonnes per day when at full capacity and process shipments at the speed of 14,000 shipments per hour. In comparison, the manual processing system in the current facility handles up to 225 tonnes per day at a speed of 2,400 shipments per hour.

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March 2015 I Cargo & Logistics

3

ä

CARRIERS DROPPED FROM DB SCHENKER SUIT

DB Schenker has dismissed its charges against three carriers in the air cargo cartel case filed last December in the United States. The firm’s parent company, railroad conglomerate Deutsche Bahn AG, said that Schenker was dismissing charges against Nippon Cargo, SAS and Cargolux.

The company added that it will continue to pursue its claims against other air carriers and seek damages relating to the air carriers’ anticompetitive conduct alleged in the US cartel lawsuit, based on the legal principle of joint and several liability. The remaining four carriers in the suit, filed December 1, 2014 in the Eastern District of New York, include Air France, KLM, Martinair and Qantas. Schenker is seeking damages estimated at approximately $370 million for alleged price-fixing practices that occurred between 1999 and 2006. The damages figure could increase to about $1.1 billion if the court decides to award treble damages.

NUMBERS

PER CENT RISE IN KOCHI PORT CARGO

ä

Kochi port saw an increase of 3.14 per cent in the cargo movement between April 2014 and January 2015 when compared with the first 10 months of the last financial year. According to tentative figures from the Indian Ports Association, the Kochi port handled 18.02 million tonnes (mt) of cargo, including containerised cargo, during the current financial year up to January. During the same period last financial year, the port handled 17.47 mt.

For the whole of last financial year, Kochi handled a total of 20.89 mt of cargo, including containerised cargo.

3 ä

MT CARGO HANDLED BY TUTICORIN PORT

Tuticorin port handled a record cargo traffic of 3.23 million tonne (mt) during February 2015, surpassing the previous 2.85 mt handled during March, 2014.

The port also crossed the previous year’s traffic of 28.64 mt on February 27, 2015 by clocking 28.8 mt. The key contributors in the record traffic are coal, pet coke, copper concentrate, rock phosphate, construction materials, containerised cargoes, oil cake copra, naphtha, furnace oil, liquid ammonia and caustic soda lye. The port also has crossed 2013-14 container traffic volume of 507,735 TEU on March 3, 2015, by handling 508,678 TEUs traffic during the current year.

30

KM ROAD PER DAY TO BE BUILT

ä

The central government is planning to lay 30 kilometer (km) of roads per day in the next two years, up from the current level of 11 km a day. “We want to build 30 km of road in the next two years,” Nitin Gadkari, Minister for Road Transport and Highways said while replying to a question during Question Hour in Rajya Sabha. To another question, the Minister said the toll collected on the Delhi-Agra Highway by DA Toll Road, which is an SPV of Reliance Infra, was being kept in an escrow account following a CAG report. In December last year, the CAG report had said by the end of August 2013, DA Toll Road collected a toll amounting to `120 crore.

The minister also said that National Highways Authority of India (NHAI) had

38%

REVENUE RISE FOR SWISSPORT

ä

Swissport reported total revenue and other operating income of swiss franc (CHF) 2.9 billion for the year 2014. Compared to 2013, this represents an increase of 38 per cent.

“Aviation industry trends last year included outsourcing, growing passenger numbers in line with capacities and an air cargo business that is continuously recovering, in some regions even increasing.

Ground Handling showed steady growth in most of the countries in which Swissport operates and that its cargo business delivered a positive year in all aspects,” the company said adding that the Swissport could not only strengthen its overall market share, but also became the largest ground handler in the UK and Ireland with operations at more than 30 airports, and further increased its footprint in Latin America by being present in 10 countries in the region.

H C TIWARI

3.14

been facing serious delays in project completion on account of various factors including land acquisition, environment and forest clearance.

4

MORE A330200FS FOR TURKISH AIRLINES

ä

Turkish Airlines has signed a firm order for the purchase of four A330200F freighter aircraft. Operated by Turkish Cargo, the additional aircraft will help to further boost the company’s expansion in the cargo market. Turkish Airlines already operates five A330-200F, and the additional order will enable them to quickly meet the growing cargo market demand.

“The A330-200F freighter aircraft have demonstrated outstanding operational reliability and performance for our cargo transport operations. It is with this in mind that we chose to expand our freighter fleet with more A330-200F,” said Temel Kotil, CEO of Turkish Airlines.

Cargo & Logistics I March 2015

11

EVENT

India’s German Ambassador comes home

CELEBRATIONS GALORE: (Top to bottom) Dr Alexis von Hoensbroech, Board Member, Products and Sales of Lufthansa Cargo on Namaste India plane waving to the crowd after the naming ceremony; (L-R) Ashok Gajapati Raju, Minister for Civil Aviation, Helge Krueger-Lorenzen, VP, Asia Pacific, Lufthansa Cargo, Veli Polat, Regional Director, South Asia and Middle East, Lufthansa Cargo and Pradeep Panicker, CCO, DIAL at the ‘baptism’ and naming ceremony; and dancers performing on Indian folk songs

“Namaste India!”

A common enough greeting in India but now it is ready to travel the world — and the credit goes to Lufthansa Cargo. A MD11 freighter from Lufthansa’s cargo fleet with the registration ‘D-ALCJ’ touched down at Delhi International Airport on March 18, 2015 for its official baptism ceremony in which it was named ‘Namaste India’.

The official naming — very much like the naming of a ship — was done by Dr Alexis von Hoensbroech, Board Member, Products and Sales of Lufthansa Cargo and Pusapati Ashok Gajapathi Raju,

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Union Minister of Civil Aviation. In keeping with Indian tradition, a coconut was broken, its water sprinkled on the plane and tilaks were applied on the foreheads of the two pilots who had flown the plane to Delhi, among many others.

The freighter has been named ‘Namaste India’, symbolising the significance of India as one of the most important markets for Lufthansa’s global air freight services. Said Dr Alexis von Hoensbroech: “The ‘Namaste India’ greeting also illustrates the special bond between Lufthansa Cargo and India. We are proud to be the leading European cargo carrier

EVENT

WELCOMING A LEGEND: (Clockwise from top left) Dr Alexis von Hoensbroech, Board Member, Products and Sales of Lufthansa Cargo being blessed by the pandit during the puja ceremony; Pilots of Namaste India with Helge Krueger-Lorenzen, Lufthansa’s Vice President for Asia Pacific, Veli Polat, Regional Director, South Asia and Middle East, Lufthansa Cargo pose for a photo during the naming ceremony; Dr Alexis von Hoensbroech and Helge Krueger-Lorenzen along with a Lufthansa staffer at the press meet; and, Ashok Gajapati Raju, Minister for Civil Aviation applying the tika to Namaste India during the puja ceremony

from India to Europe.”

Lufthansa Cargo has long standing connections with customers in the air cargo industry since 1959 and grew further with the first freighter operations in the 1970s. Today, Lufthansa Cargo offers 59 weekly flights between India and Europe including the services of Lufthansa Passenger Airlines and Austrian Airlines.

‘Namaste India’ is the eighth Lufthansa Cargo aircraft to be renamed in the last few months. The names of the aircraft are based on the winning idea of an open creative competition organised by Lufthansa Cargo to rename their entire fleet in 2013. More than 40,000 potential aeroplane names were received by Lufthansa Cargo within six weeks and the jury decided on the idea of “Saying hello around the world”. All the freight aircraft in the Lufthansa Cargo fleet are now being changed to greetings in around 20 languages. The last one that was named was “Konnichiwa Japan” and has been taking Japan around the world.

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WANTED:

A change in direction

The recent World Cargo Symposium at Shanghai came on the heels of a recovery in the international air cargo sector. It was the perfect opportunity to take an indepth look at the air cargo industry vis-àvis its relations with consumers: the results of a recent International Air Transport Association (IATA) survey revealed that 7 per cent of those surveyed were ‘very unsatisfied’ with the services offered by the air cargo industry. In addition, the air cargo industry has to be ready for the China factor, as Tirthankar Ghosh finds out GAME CHANGER: IATA’s Director General Tony Tyler with the panelists during WCS

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Cambodia, automotive industry sources from India while Vietnam has become the centre of IT. To top it all, labour costs are rising in China. Corporates have started moving or have already shifted production bases closer to home where quality control and logistics costs are lower. Result: Industries have moved to Romania, Bulgaria, the Czech Republic and Poland in Europe and Mexico in the case of the US. Moving away from China’s clutches could take quite some time. Meanwhile, according to Marco Bloemen, Senior Vice President of Seabury Group, the aviation consultancy, Chinese exports and US imports will be the biggest drivers for the air cargo industry in 2015. “China is the key reason why the air freight market has

FLICKR/IATA

A

ir cargo pundits believe that the choice of the ninth World Cargo Symposium’s location — Shanghai — was significant not merely because it is the largest Chinese cargo hub (China is currently the driver of the international air cargo business), but also due to the fact that the International Air Transport Association (IATA) wanted to send a clear signal that it was interested in the Chinese market.

Will IATA’s efforts not go to waste?

Consider the scenario. China is indeed an important hub for industrial production — but that was yesterday. Today, the times and the numbers are changing. Garment production has moved to Bangladesh and

grown. It provided 62 per cent of the tonnage increase last year and 40 per cent of that is hi-tech,” Bloemen was quoted saying.

IATA’s Senior Economist Julie Perovic echoed almost similar thoughts when she said that “the economic cycle is positive, but weak. And only some trade lanes are seeing strong growth”. Cargo on the AsiaUS routes grew the fastest among the key trade lanes in the past year and a half, but was still low compared to its peak levels in 2010. In fact, Asian carriers, in particular, have been carrying less traffic compared to five years ago, and this is likely due to competition from other carriers that have rapidly expanded their market share, Perovic said. According to the IATA, traffic as measured in freight tonne kilometres (FTK) has grown the most for Middle Eastern airlines, by 60 per cent compared to 2010, whereas Asian carriers saw a decline of 8 per cent. “(Asia Pacific carriers) have yet to return to their 2010 level, but that does not mean they did not grow in the past year.

They account for the largest proportion of global FTK, so it is important they return to strong growth,” Perovic said. The movement of goods from Asia to Europe has not yet come up to the pre-2008 levels (that was the time when the financial crisis occurred) though the move from Europe to Asia has gone up, according to IATA data.

Andrew Herdman, Director General of the Association of Asia Pacific Airlines, also emphasised that the “air cargo industry has been plagued by the directional imbalance of trade flows. Freight rates on China outbound routes would be a lot more expensive than the way back because they are in demand”. In the past 30 years, the growth in China’s exports has only increased the imbalance.

Other than the China imbalance that the world will have to endure and correct, the meet discussed how to improve the customer experience. And it was at the discussions that forwarders pointed fingers at the industry for the poor service quality and communication. Air cargo was blamed for being too slow, unresponsive and lacking in visibility. Reports indicated that around 94 per cent of the 336 forwarders who had Continued on page 20

Cargo & Logistics I March 2015

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‘There is a revolution going on…’

An air cargo optimist, Tony Tyler, IATA’s Director General and CEO, admitted at the recent World Cargo Symposium in Shanghai, that the last few years had indeed been very difficult for the industry. It was now time to go forward, he told air cargo stakeholders. Excerpts from his speech:

S

hanghai is a fantastic venue for this event (9th World Cargo Symposium). If anyone ever expresses any doubt over the ability of trade to transform people’s economic prospects, then invite them to see Shanghai. A greater advertisement for the beneficial power of commerce cannot be found anywhere in the world.

There can be no doubt that the government of China not only understands the benefits of aviation connectivity, but also backs that up with solid investment. The growth of aviation in China over the past two decades, accompanied by a transformation in infrastructure and safety, has been remarkable. It is greatly to the credit of Chinese political leaders and regulators that they were able to develop a vision for aviation and then follow it through. The Chinese people will reap a wonderful dividend from this. Our 20-year passenger forecast envisages 5.5 per cent growth in China, leading to it becoming the world’s largest air travel market around 2030. Every new flight is a chance for China’s citizens to make new economic connections, exchange scientific and business ideas, and develop educational, leisure and cultural opportunities.

China is already one of the leading air cargo nations, accounting for 7 per cent of global air freight. Our current cargo forecast looks out to 2018, and again, it is good news for China. Air cargo volumes to, from and within China are set to increase by 4.9 per cent a year over this period. This is comfortably ahead of the global average for this period, of 4.1 per cent. We are also seeing that the growing Chinese middle class is driving demand for foreign goods, which will help create a more sustainable and balanced economy. This

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will have beneficial effects for air cargo flows.

After a dismal few years of negligible growth, the general picture for air cargo in 2014 was of strengthening volumes as economic recovery gathered pace. Global FTKs were up by 4.5 per cent, which was better than was expected after a slow start to the year.

Firstly, while the growth in volumes is welcome, it is not being matched by an improvement in yields and revenues. Cargo revenues remain $5 billion below their 2011 peak, and yields are set to decline for a fourth straight year in 2015. As Glyn Hughes, IATA’s Head of Cargo, has pointed out, doing more work for less money is not a sustainable business model for the long term. So, the industry has a major challenge on its hands to find a way to make air cargo pay.

Secondly, the overall growth figures do not explain the story of the kind of goods being shipped. We all know that the days of moving mainly boxes of software, domestic printers and desktop computers have gone forever. Increasingly, air cargo is being used for ever-more sensitive goods. These require greater speed, tighter security, and absolute temperature integrity. The complex procedures and facilities that are needed for these shipments are both a challenge and an opportunity.

There is a revolution going on, affecting every shipper, freight forwarder, airline, technology and service supplier to this industry. Much of this transformation is going on unheralded. Our aim is to shine a light on these trends and innovations. We want to demonstrate how these changes are linked to a wider strategy of business transformation that will keep air cargo at the forefront of logistics innovation. This transformation — which is in line with our call last year for a cut in average shipment times of up to 48 hours by 2020 — will help to recapture market share, drive high-value shipments to air transport, and help to restructure the industry so that revenues and margins both strengthen. I would like to explore four particular elements of this transformation and its implications for customers: • The transition to paperless freight • The development of harmonised stan-

• •

dards, training and procedures for the handling of pharmaceutical and other temperature-sensitive goods The challenge of dangerous goods and in particular lithium batteries The modernisation of the airline-forwarder relationship

The transition to paperless air cargo

the ground, and we are now seeing this realised in a growing number of places around the world. Only when we build a fully digital process can we, as an industry, deliver the level of service, performance and transparency our customers expect from us.

We still have work to do to help businesses transition and we are committed to continue to develop the standards and to provide the tools needed to support it. But the big difference has been the change in mentality. There is now acceptance that this is the way forward. And it means that we can now look ahead and plan for the wider adoption of e-Freight and the digitisation of the rest of the air cargo documents through a collaborative industry approach.

We live in a digital century. Yet air cargo still operates with procedures from an analogue age. Few would disagree that moving from paper to electronic processes will open up countless efficiencies and opportunities for improved service delivery. But unfortunately, while the spirit has been willing, the practical implementation has been weak. Much of this has been due to the fragmented, Handling of pharmaceutical goods multi-layered nature of the industry.

The growth in demand to ship pharmaceuThe struggle to adopt the e-Air Waybill tical products has been one of the defining (e-AWB), demonstrated that even though trends of our business in recent years. Pharairlines have the lion’s share of the rema logistics is a $60 bn market that has been sponsibility for driving implementation, a boon for air freight, compensating for the a partnership of the entire supply chain decline in other goods that had previously is required in order to make progress. been shipped by air. But as we all know, this 2014, though, was a breakthrough year, is a business with big demands. And those with e-AWB penetration reaching 24.9 demands are increasingly coming not just per cent, and continuing to progress at a from customers, but from regulators. pace that is now three to four times that Our industry faces a twin-track chalof just a year ago. This is an achievement lenge. In addition to their usual expectations to be celebrated. The old adage ‘success for reliability and speed, customers need has many parents’ is certainly true in adequate facilities and handling procedures this case. It has been the result of close that guarantee a constant temperature range, cooperation between airlines, freight and the absolute integrity of the package. forwarders, shippers, handling agents, And regulators have proposed or impleand also customs authorities. Regumented a vast array of requirements latory support for e-freight is with which the industry must higher than ever, as shown comply. If these challenges There is a by the growing number are not overcome, air carrevolution going on, of routes now open go risks losing the opaffecting every shiparound the world. Parportunity presented by per, freight forwarder, ticularly noteworthy this huge market. For airline, technology is that Shanghai, one let’s be in no doubt, and service supplier of the world’s largest our modal competitors to this industry. Our cargo hubs, has been are working hard to aim is to shine a light fully open for e-AWB win this business. on these trends since November 2014.

To help foster air carThis is just one example of go’s competitiveness in this why we believe adoption is now growing industry, IATA has deset for take-off. We want to reach 45 per veloped a new initiative: the Centre of Excent use by the end of this year. cellence for Independent Validation in PharGoing paperless is not just about remaceutical Logistics (CEIV Pharma). Many placing paper with electronic. It is about of you will be familiar with the CEIV Carimproving and streamlining processes on go Security programme which we created

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to help the industry remain compliant with with the rules on shipping dangerous goods. the requirements of the EU ACC3 securiAnd in particular, it is lithium batteries that ty regulation. CEIV Pharma builds on and give us cause for concern. The safe transextends this concept. CEIV Pharma assessportation of lithium batteries by air is a es and validates cool-chain processes and global challenge, but it is important to note provides training to guarantee that they that China is a major source of lithium batcomply with all applicable standards and tery production. We need to work hard with regulatory requirements. Already, we have all stakeholders in China to tackle this crua number of organisations working to cial issue. In my last address to this forum achieve CEIV certification. Most notably, in two years ago, I said we needed to improve December last year Brussels Airport undertraining and communication and work took to coordinate 12 businesses operating closely with ICAO and regulators around at the airport to achieve CEIV certification. the world. I am pleased to say that progress We hope this will be just the first of a wide has been made on these aims. network of certified companies and trade For example, to support the growth of lanes, independently assessed to be compliawareness and knowledge-sharing on this ant with international regulations. issue in China, IATA has released The benefit of the CEIV the new Lithium Battery certification for all organShipping Guidelines in Nothing comes isations that achieve it Chinese. This document before ensuring the will be to install trust is designed to guide safety of our passenand confidence with shippers and manugers and crew. The shippers that facilities, facturers step by step ICAO Dangerous systems and qualified through the shipping Goods Panel does people are in place to process. With these excellent work keephandle and transport guidelines and other ing ahead of potential their sensitive goods awareness work by the threats and appropriately. When comUniversal Postal Union challenges bined with the Facility Capaand ICAO, the industry is bilities Matrix that IATA is develmaking real progress in bringing oping to catalogue and benchmark standard stakeholders on board. But safety isn’t operational capabilities, it will give customsomething that only happens at the airport ers the visibility they need to be sure the inor on board the aircraft — it is a shared retegrity of their products will be maintained sponsibility. Above all, regulators need to until they reach the customer. step up and not assume that airlines will do Handling of dangerous goods the job for them. Regulators are the key to I would now like to move to discussing the having regulations followed. The industry safe handling of dangerous goods. This reis doing what it can, but without oversight, mains the number one priority of the air carsurveillance and where necessary enforcego industry. Nothing comes before ensuring ment, compliance at the source of the shipthe safety of our passengers and crew. The ment will be limited. Disappointingly, we ICAO Dangerous Goods Panel does excelare seeing some willful non-compliance in lent work keeping ahead of potential threats the area of lithium batteries. For example, and challenges, and the IATA Dangerous there is a supplier on Ali Baba claiming Goods Regulations ensure that airlines and they will re-label 300 Watt hour batteries the wider industry are able to take the pracas 100 Watt hour, and even ship them via tical steps to secure their shipments approthe standard postal service. We are pressing priately. So, the challenge is not that our regulators and the e-commerce sites to be regulations are inadequate. The challenge is more diligent in making sellers aware of to ensure that the regulations are understood regulations and, as importantly, taking acand followed by shippers across the world. tion to address non-compliance.

The rise of e-commerce and the ability Modernising relationships of small businesses to export to a global auI would like to explore developments on dience has created a significant new market modernising the airline-forwarder relationof shippers who are not necessarily familiar ship. For some time, we have been looking

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with FIATA at how to move the outdated system which regarded the Forwarder as the agent of the airline to a much more equitable and mutually-beneficial arrangement. I won’t go into the nitty-gritty of the discussions here, but I would like to outline six key principles which we are following as we move forward.

• First, we accept that the current Agency Programme does not reflect the evolved business relationship between airlines and freight forwarders, which is now predominantly that of customer-supplier with forwarders’ purchasing capacity on behalf of their shipping clients.

• Second, the industry standards and those required for programme endorsement should be based on the critical requirements of the modern air cargo industry and should be applicable to all parties.

• Third, governance of an industry-based programme should be based on a “by the industry for the industry” principle, so airline and forwarders should jointly manage the programme • Fourth, governance should be simplified. In other words, we should reduce the proliferation of industry groups and instead focus on key regional requirements built around a global framework • Fifth, open and transparent programme management is essential • Sixth, industry settlement solutions such as CASS remain a pivotal component of the programme It is well known that I am a cargo optimist. My own background in the airline business has given me a close interest in cargo issues and I never forget what an important business area it is for many airlines. I will admit that for an air cargo optimist the last few years have been very difficult. My belief in the prospects for this industry, however, is undimmed. The reasons for that are not because the latest economic data say trade is expanding or because fuel costs are falling or tariff barriers may be taken down. It is because the industry is really starting to act strategically and plan for the future. Wherever you look, whether it is the implementation of the e-AWB, the investment in cold-chain facilities, or the determination to expand trade lanes and take on new markets, there is a new confidence about air cargo.

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COVER STORY

FLICKR/IATA

Continued from page 15

INNOVATION HONOURED: CHEP Aerospace Solutions awarded by IATA for its innovation

taken part in a global IATA survey, gave an average performance rating of 7.08 in a maximum of 10 with ten coming from those who were ‘very satisfied’ while zero was from the ‘very unsatisfied’. What was a cause of concern for Tom Windmuller, IATA Senior Vice Presidnet for Airports, Passenger, Cargo and Security was that around 7 per cent of the respondents were said to be ‘very unsatisfied’. That was around $4 billion of air cargo spend where the customer was unhappy and where the business was, therefore, under threat.

Those who attended the conference emphasised that other than the standards that were deteriorating, the industry was seen to be caught up trying to cater to customers’ demands.

Robert Mellin, Head of Distribution Logistics for Ericsson, for example, gave air cargo a satisfaction rating of just 5. This, notwithstanding the fact that Ericsson spent almost $200 million a year on air freight.

To top it all, Mellin said that air freight was 10 times costlier than surface transport, but not 10 times as fast. “We are keen to have a better service, but we have not seen much happening in air freight — apart from the e-air waybill, but that has not really been moving forward.”

Surface transport in Europe had improved and was more customer-conscious as far as visibility throughout the transport chain was concerned. “We are more connected and have implemented tools that

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allow us to be more connected to the (surface) transport process. But in air transport, we are more disconnected; the information sharing is not there,” said Mellin.

Said Chris Welsh, Secretary General of the Global Shippers’ Forum — who had given air freight a rating of 6 out of 10 — customers from the hi-tech or pharma sectors were those who were dependent on air freight as a distribution channel. These companies were most frustrated because air freight “just can’t get its act together quickly enough” because it had gaps in its visibility chain.

Respondents said the top three reasons they used air freight were time or speed (90 per cent); customer requirements (40 per cent); and reliability (30 per cent). Their complaints: air freight was “too complex”; “inefficient”; and “lacking in transparency, quality, and real-time information”. There were others too who said that there were offloads; too much repetitive data entry; long lead times compared to cost; replies to enquiries taking days; and a lack of ability to control the air freight process themselves.

It was not without reason that IATA called for further action on three vital aspects of the air cargo business: transitioning to paperless freight processes, a focus on global handling standards for pharmaceutical freight, and tough action to ensure the continued safe transportation of lithium batteries by air (see excerpts from Tony Tyler’s speech).

The transition to paperless freight finally saw lift-off in 2014, as the industry exceeded 24 per cent global e-Air Waybill (e-AWB) penetration. The key to the improvement was enhancing collaborative work across the air cargo chain and with customs authorities. A growing number of routes around the world now have the necessary regulatory approval, including, from November 2014, Shanghai. “We still have work to do to help businesses transition, but there has been a big change in the mentality of the industry. We can now look ahead and plan for the digitisation of other air cargo documents, through a collaborative industry approach,” said Tyler. The industry is aiming to achieve 45 per cent e-AWB penetration in 2015 and 80 per cent in the following year.

Global handling standards for pharmaceutical goods will be an essential step towards air cargo improving its share of the $60 billion a year pharma logistics market.

The industry needs to meet customer demands for the integrity of their goods, while complying with increasing amounts of regulation from global authorities. “If these expectations are not met, air cargo risks losing the opportunity presented by this huge market. Modal competitors to air are working hard to win this business,” said Tyler.

To help foster air cargo’s competitiveness in this growing segment, IATA has developed a new initiative, the Centre of Excellence for Independent Validation in Pharmaceutical Logistics (CEIV Pharma).

The continued safe transportation of lithium batteries remains a key concern for the industry. Robust regulations and guidance exist, but these are not being fully adhered to by all shippers. China is the largest producer of lithium batteries and therefore a key market.

IATA has developed the Lithium Battery Shipping Guidelines in Chinese to raise awareness on this vital issue, but the issue is also one for government authorities.

“Regulators need to step up. The industry is doing what it can, but without oversight, surveillance and where necessary, enforcement, compliance at the source of the shipment will be limited,” said Tyler.

Will the air cargo community weather these difficult times and regain top slot again? The world waits.

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CAFETERIA

SOPTLIGHT

Call to battle

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Th th fu du Pr

SPOTLIGHT

The US’ Big Three has launched a war against the Middle East’s Big Three. If protectionism – the kind that the US carriers want – is enforced, the loss will ultimately be that of the air cargo sector. Hopefully, the kind of protectionism that the three US’ legacy carriers are seeking will not happen, largely due to the questions that have been raised by cargo giant FedEx and plane manufacturer Boeing. Will President Obama listen? C & L takes a close look at what is happening…

T

he big three US legacy carriers — American, Delta, and United — started a war when they asked the Obama Administration to review the Open Skies agreements. Their aim: to restrict US access for carriers — primarily the big three, Emirates, Etihad and Qatar — based in the Middle East. The spark, if one may term it that, comes from the US carriers’ belief that the Big Three of the Middle East receive illegal subsidies for carrying on their business and this provides them an unfair advantage over the US carriers, which are not subsidised.

Whatever the merit in the US carriers’ argument, it has to be remembered that the Open Skies policy is not merely for the three US carriers and also, importantly, that the policy is not restricted to passenger traffic. David Bronczek, President and CEO of FedEx Express, in his open letter to the US Secretaries of State, Transportation, and Commerce has clearly pointed out that the aviation industry has another point of view regarding Open Skies. Coming as it does from a cargo carrier, it is significant and worth a look (see pages 24 and 25). “The US should not capitulate to the interests of a few carriers who stand ready to put their narrow, protectionist interests ahead of the economic benefits that Open Skies provides,” David Bronczeck wrote.

What the Obama administration does remains to be seen. But if one were to go by reports that appeared in 2012, the Federal Transportation Administration (FTA) is committed to modernising its $60 billion air cargo industry to ensure its market leadership. This will be done by expanding international trade, contributing to job creation and national prosperity. The then FTA Administrator Peter Rogoff, writing as a guest blogger on the Department of Transportation (DOT) website, mentioned that US busi-

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Open Letter

nesses “rely on a 21st century transportation network” that can deliver parts, supplies, and finished products safely and efficiently. “For many American businesses, that means an air cargo system that can keep up with the speed of global commerce,” Rogoff wrote on Fast Lane, the personal blogsite of the then US Secretary of Transportation, Ray LaHood (from 2009 to 2013). He also said that air cargo made up 31 per cent of the total value of US exports. “That’s why President Obama and DOT are committed to investing in a reliable, modern transportation network that creates jobs today and supports businesses in the long term.”

Even before that, Rogoff emphasised at the 2012 International Air Cargo Forum in Atlanta, Georgia that the Obama Administration was committed to maintain a strong air cargo industry. “What’s good for air cargo is good for the US economy,” he said and went on to point out that “in Atlanta alone, more than 19,000 direct and indirect jobs in the Atlanta area are related to air cargo operations. I saw the contribution this industry is making in Tennessee when I visited the FedEx aviation hub in Memphis and the UPS

hub in Louisville,” Rogoff pointed out.

He also said: “The President set the ambitious goal of doubling US exports by 2015, and a thriving air cargo industry is helping move us closer to that goal each year.” He said that at DOT, the controlling agency of the FTA, “we’re working hard to secure additional market openings for US cargo companies abroad. And we are continuing to help the cargo industry realise the full benefits of this improved global market access.”

Rogoff, in fact, emphasised that through the “open skies” agreements, more than 100 markets around the world had been opened to the US cargo industry. Open skies pacts allowed airlines to select routes and destinations based on demand for cargo services, without limitation on the number of flights or carriers that can operate in the market. “As a result, we have industry leaders, like UPS and FedEx, with strategically placed hub facilities in key growth and manufacturing markets worldwide,” Rogoff said. “Some of these ultra-modern hubs are capable of moving tens of thousands of pieces of cargo per hour. And they link the United States with key trading partners across the world, like

Open letter to US Secretary of State John Kerry, Secretary of Transportation Anthony Foxx, and Secretary of Commerce Penny Pritzker Re: FedEx Support for Open Skies Dear Secretaries Kerry, Foxx and Pritzker: I am writing to express FedEx's strong support of Open Skies and the U.S. government's long established policy of promoting, negotiating, and then honoring Open Skies bilateral aviation agreements.

FedEx has grown tremendously since its first night of operations in 1973. Our fiscal year 2014 revenue was $45.6 billion and we are among the most admired companies in the world. Thanks to more than 300,000 outstanding FedEx team mem-

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bers, FedEx serves more than 220 countries and territories and continues to offer new products and services around the globe.

Our aircraft fleet numbers more than 660 aircraft, including new Boeing 777s and 767s. Here in the US we serve every address in every community and our aircraft can be seen at almost 300 US airports.

Our industry is an essential component of a rebounding American economy. The connectivity we provide for U.S. businesses, both small and large, is critical for their global expansion. FedEx is proud to be a leader in the President's National Export Initiative.

FedEx and other US cargo carriers depend on Open Skies to provide our aircraft and their important cargo access to global marketplaces. Our ability to exploit the rights set forth in those agreements

China and Europe,” he said.

Rogoff went on to say that with hundreds of new flights, improved timings in transit for shippers, “the winners are American consumers, American businesses, and American workers”. He said that real challenges and difficulties existed for US cargo carriers around the world, so the government would continue to work with stakeholders in the US and abroad to ensure that the US cargo industry continued to be a world leader.

Other than Fedex, airplane manufacturer Boeing too, has joined the Open Skies debate saying that it was for it. In fact, Boeing, like its European rival Airbus, has orders from the Middle East carriers. “Boeing supports a commercial-aviation industry based on open and fair competition, and Open Skies has long been a key factor in this, benefiting both US and international airlines,” Boeing spokesman Jim Proulx said in a statement.

This has led to comments supporting Open Skies. Michael E Levine, New York University law professor was quoted saying, “I think the entry into the fray of Boeing and the others as countervailing pressures to the airlines will make it easier politically for

means that FedEx aircraft span the globe.

Air cargo carriers, such as FedEx, move the high-value, time-sensitive products essential for the US to create more high-paying jobs. We also are leader in carrying American products in the B2C markets of e-commerce, where there are new cross-border opportunities for US small and medium enterprises. We cannot operate internationally and provide efficient, cost-effective services without Open Skies.

Recently, several U.S. passenger carriers have questioned Open Skies, specifically as it relates to Middle Eastern carriers.

These U.S. passenger carriers do not fly extensively between foreign points like FedEx does. They believe they have little to risk by limiting foreign carrier access to US markets. What they want is for the US government to protect them from competition from able, attractive new entrants.

For FedEx, the Open Skies agreements with the Middle Eastern countries are very valuable. Under the agreement with the UAE., we have established a hub in Dubai,

SPOTLIGHT

the administration to do what I believe the Department of Transportation wants to do, namely, to continue to pursue its successful Open Skies strategy”.

Meanwhile, on the other side of the Atlantic, KLM has started its opposition as Netherlands planned an Open Skies policy for freighters. According to the plan under discussion in the Dutch parliament, freighter operators to the Netherlands will be welcomed with open arms. The politicians aim is to boost the economy but KLM does not want it.

The discussion in parliament follows the Dutch Ministry of Infrastructure and Environment’s initiative in commissioning Seabury to research “lucrative corridors” and air cargo trends affecting Schiphol and the Netherlands. The research has found that by reducing traffic right restrictions on freighters, the economy will receive a boost.

The plan has received support from the Dutch Shippers Council, EVO, and air cargo associations but the objections placed by KLM has reportedly divided “both aviation and political opinion”, according to reports.

Despite the moves by KLM, forwarders

are supporting the move for open skies. Joost van Doesburg, Policy Advisor for EVO, pointed out that the EVO had requested open skies even before KLM decided to reduce its freighter fleet. He went on to say: “We are pleased our ministry has come up with this.

It makes sense — if an airline stops flying, you can allow others to step in. It’s not a strange request.”

In fact, the move to liberalise traffic rights for freighters has of late received a lot of support — especially after the US west coast port congestion which saw a lot of cargo charter flights taking place between Asia and the US. Justin Bowman, CEO of Air Charter Service, was quoted saying at the recent Air Cargo Africa event that the charter prices being paid for aircraft with the right capacity and rights from Japan to North America recently were $100,000 more than under open skies. He also said that the airlines that had those rights were taking advantage. As a result, rates had almost doubled. “It cannot be good for the supply chain if shippers are forced to pay more, rather than having the right freighters available to fly those routes,” he said.

Unlike containerships that are able to choose any port for calls, air freighter traffic remains restricted. Result: costs and inefficiencies have been going up. And the recent move by the US big three carriers have proved that protectionism existed.

“Protectionism hasn’t improved — it’s got worse. Our problem is the continued protectionsim of markets — there are restrictions on the ability to operate the right aircraft on grounds of traffic rights. And there has been virtually no progress, especially in North America which becomes more difficult, not easier.”

That reminds us of an interview that Brandon Fried, Executive Director of the US Airforwarders Association, did with Tony Tyler, Director General and CEO of the International Air Transport Association, during the CNS Partnership Conference in San Antonio, Texas in May 2014. “Cargo matters to IATA,” Tyler said and went on to mention that the industry was getting closer to open skies, though that term had different definitions for different people. “We’re only moving in one direction, and that’s toward liberalisation,” he said.

where FedEx flights from the US crisscross with our flights from India and Asia in order to move US products into local markets. This hub also acts as our gateway into Africa. Presently, FedEx alone operates almost two-thirds more flights to the Middle East than all the US passenger carriers combined. Modifications to this agreement might spell the end of these opportunities, closing off those markets to our customers.

Retrenchment in any way from Open Skies by the US would jeopardize the economic growth benefits that air cargo pro-

vides. Retrenchment would result in higher fares and fewer options for flying passengers. Retrenchment benefits only a very few. The US should not return to the restrictive, inefficient, expensive agreements of the past where customers, communities, air cargo, and the greater U.S. economy suffered.

FedEx is not alone in its support for Open Skies. Airports, travellers and other US airlines have already addressed this issue publicly. Those groups have laid out the benefits for passengers created by this suc-

cessful, long-standing policy. We appreciate the opportunity to make the case on the cargo side, in support of US shippers.

FedEx urges the US government to honour the Open Skies agreements it has negotiated with over 110 countries in every region of the world. There is no need to consult with our Open Skies partners absent public proof that alleged unfair competition meets the standards long established in US law. The US should not capitulate to the interests of a few carriers who stand ready to put their narrow, protectionist interests ahead of the economic benefits that Open Skies provides to the people of the United States.

Please feel free to contact me if we can provide you any additional information.

Sincerely David J. Bronczek President and CEO FedEx Express

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Delivery on demand

Online shoppers around the world want the ability to search and shop on multiple channels and devices, expect to see alternate delivery and payment options, and when it comes to shipping and returns, ‘free’ is a driving factor to complete the sale

ON TIME: UPS reveals upcoming trends as people are nowadays looking for alternate delivery options; one of delivery person from UPS on its way to deliver the product

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comScore, American Internet analytics company, and UPS, a global provider of logistics and transportation services, recently released the second UPS Pulse of the Online Shopper Global Study revealing emerging trends from the leading e-commerce markets in Asia, Brazil, Europe, Mexico and the US. According to the study, online shoppers across these markets are looking for alternate delivery options. This is especially high in Asia, where 45 per cent of respondents said they would prefer to have their online order delivered to locations other than their home. When not at home to sign for a package, 33 per cent said they want their items shipped to a local retail location authorised to hold the package for pickup at their convenience. Asian shoppers are avid technology users and the least patient with 48 per cent expecting nextday shipping to be offered by retailers, the highest of any market.

Brazilian consumers are the most advanced and social in their online shopping habits. More than half (56 per cent) of their purchases are made online, the highest of any market, and 64 per cent said they are influenced by reviews or posts on social media to help decide which products to purchase. However, they experience barriers to shopping on a mobile device: 39 per cent said they can’t get a clear or large product image, 31 per cent said they cannot easily view product information, and 34 per cent said it is hard to compare products. Over a third (38 per cent) of online shoppers in Brazil are willing to wait 11 days or more for their international orders in order to qualify for free shipping.

European online shoppers are gradually embracing emerging technologies.

They make the fewest purchases on a smartphone (19 per cent) compared to the other four markets and less than half

RESEARCH

Sauce for the globe

(40 per cent) use retailer mobile apps.

They make more in-store purchases (54 per cent) than they do online, and while shopping in a store, 61 per cent prefer to check out with an associate. In response to delivery questions, 52 per cent said they prefer seeing the expected arrival date rather than the number of days it will take for the item to arrive.

Mexican online shoppers reflect both the old and new retail landscape. They make the highest percentage of in-store purchases, and cite fraud-related delivery issues as a primary concern. However, they do use mobile technology — 43 per cent reported using their smartphones to research products before visiting a store.

And in order to receive items the same day, 60 per cent said they want the ability to purchase items in a store window. Only 35 per cent have returned an online purchase, the least of any market.

American online shoppers are open to new trends on social media and instore technologies, making more purchases on tablets than any other market.

Free shipping continues to drive purchasing decisions as 58 per cent of online shoppers reported adding items to their shopping cart in order to qualify for the incentive. Further, 83 per cent are willing to wait an additional two days for delivery if shipping is free, and 68 per cent said

FedEx Express recently launched its latest multi-market advertising campaign in India, which shares the story of how a small hot pepper sauce maker from Nevis in the Caribbean, Llewellyn Clarke, can realise his dream—and the dream of so many small businesses—of going global.

“Llewellyn’s story captures the passion and perseverance of so many small businesses around the world who dream of going global,” said Raj Subramaniam, Executive Vice President, Marketing and Communications, FedEx Services. “Growing a business internationally is not easy, but it can offer big rewards to small businesses with the right product, market entry planning and supply chain strategies,” Subramaniam added.

At the centre of the campaign is a video that captures how FedEx can help

Llewellyn on his quest to go global, transporting his hot pepper sauce from the small Caribbean island of Nevis across the world to a remote village in China.

This journey culminates with colorful onscreen reactions of people all around the world trying Llewellyn’s very hot pepper sauce for the first time.

“Already small and medium businesses are increasingly becoming a driving force in our domestic Indian economy, contributing to jobs, innovation and the vibrancy of our communities,” said Nathalie Amiel-Ferrault, Vice President, MEISA Marketing & Communications, FedEx Express. “FedEx is excited to be working with more and more Indian small businesses that are taking the leap, and exploring ways of growing their businesses internationally,” he added.

READY TO MOVE: Shipments loaded on a freighter of UPS

free returns shipping is needed to complete a sale. Only 44 per cent of online shoppers said they were satisfied with the flexibility of changing delivery days or rerouting packages.

“Consumers demand more from their package delivery experience, and today’s online shopper expects us to respond by creating solutions that are convenient for them,” said Alan Gershenhorn, Executive Vice President and Chief Commercial Of-

ficer, UPS. “Globally, we now have more than 13 million UPS My Choice members and over 15,000 UPS Access Point locations and we continue to expand both services to meet their needs.”

Online shoppers can use UPS My Choice to reschedule deliveries for a future date or reroute packages to another address. UPS drivers, when unable to deliver a package at a consumer’s residence, will leave packages at a nearby UPS Ac-

Cargo & Logistics I March 2015

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RESEARCH

PERFECT MANAGEMENT: Products in bulk at one of the UPS’ warehouse facility

cess Point location and the consumer can pick up their items at their convenience.

These local businesses are designed to be close and convenient to the consumer’s delivery address. UPS My Choice members can also send their packages directly to a UPS Access Point location in select markets in Europe and North America.

Indian online shopping to increase: According to another study by Assocham-PwC which was released in December, 2014, the average annual spending of Indians on online purchases is expected to rise 67 per cent to `10,000 in 2015. Online shoppers spend around `6,000 a year on average, said the study.

“About 40 million consumers purchased something online in 2014 and the number is expected to grow to 65 million by 2015-end with better infrastructure in terms of logistics, broadband and internet-ready devices. The overall e-commerce industry, valued at $17 billion, has been growing at a compounded annual growth rate of about 35 per cent each year,” the study said, adding that it is ex-

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pected to cross the $100 billion mark in five years. In 2014, the sector attracted the attention of investors, including top global firms and leading Indian industry leaders like Azim Premji and Ratan Tata, said the study, adding that brands like Flipkart and Snapdeal are enjoying edge over global players like Amazon in the country.

Online apparel sales continue to capture a greater share of India retail e-commerce as a category along with the computer and consumer electronics sector, fuelling the overall market growth. “The smartphone and tablet shoppers will be strong growth drivers. Mobile phones already account for 11 per cent of e-commerce sales, and their share will jump to 25 per cent by 2017,” said D S Rawat, Secretary General, Assocham.

Computer and consumer electronics, along with apparel and accessories, account for the bulk of India’s retail e-commerce sales. These will contribute 42 per cent of the total retail e-commerce sales in 2015 from the current level of 39 per cent, said the study. India’s travel and

tourism are second fastest growing travel and tourism industry in the world. Nearly 75 per cent of total travel related business has migrated to e-commerce. With nearly one-third of internet users already making purchases online, the e-commerce growth will rely more on increased spending from existing buyers than first-time online buyers, it said. Other factors contributing to the growth of e-commerce include aggressive merchandising and discounting from flash sales and daily deals, more online loyalty programmes and increasing popularity of smartphones and tablet computers among consumers, the study added.

The industry is expected to spend an additional $500 million to $1 billion on logistics functions, leading to a cumulative spend of $950 million to $1.9 billion till 2017-20, it said. Currently, over 25,000 people are employed in e-retailing warehousing and logistics. It is estimated that there will be an additional employment of close to 1,00,000 people in these two functions alone by 2017-20, the study said.

We Deliver On Time...Anywhere

Corporate Office: 187-A, 2nd Floor, Sai Sadan, Sant Nagar, East of Kailash, Delhi-110065 Phone No.: 011-26214454, 26431222, 26211730 Email: brijesh@speedmanlogistics.com, pradeep@speedmanlogistics.com speedex_services@hotmail.com Website: www.speedmanlogistics.com Warehouse: 419-420, Lane No 1, Western Green, Rangpuri, Delhi-110037 Phone No.: 011-40502052

About Us SPEEDMAN LOGISTICS’ foray into logistics industry is not just for creating another logistics company. It is a lifetime commitment to excellence and trust that our customers can bank upon. Our infrastructural strength supports in feeding arround two thousand destinations in India. We are soundly backed by our customer support and professional staff members with full fleet of various vehicles.

Our Mission • To establish lifelong associations, retain clients and increase the number of customers trading every week.

• Improve the percentage of deliveries made on time.

• Decrease the number of outstanding invoice queries at the end of each week.

• Increase the frequency of contacts with existing and prospective customers.

• High-integrity workplace atmosphere.

• Empowerment of employees.

Our Services Air Freight I Train Freight I Road Freight I Warehousing I Door to Door Logistics I Packaging Service I Supply Chain Management

www.speedmanlogistics.com

NEWS IN BRIEF

MIAL ranked first in handling international freight T

AIR  CATHAY LAUNCHES NEW FREIGHTER SERVICE

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Mumbai Airport’s share of the country’s international cargo movement was at 32.20 per cent while for the domestic cargo it was 23.30 per cent. Overall, Mumbai topped the chart with a combined (domestic and international) share of 29 per cent.

Delhi’s share for international, domestic and total were 25.5 per cent, 24 per cent and 24.9 per cent, respectively.

Chennai came third with respective figures of 16.9 per cent, 10 per cent and 14.4 per cent.

MIAL

Cathay Pacific Airways launched a new twice - weekly freighter service between Hong Kong and Kolkata. Cathay Pacific is only airline offering a scheduled nonstop freighter services between Kolkata and Hong Kong. Operating on Thursdays and Sundays, the company operates Boeing B747-400F aircrafts to carry an estimated 30 tonnes of cargo to and fro Kolkata.

“This latest addition to our freighter network will strengthen ties between Kolkata and Hong Kong and help to reinforce Hong Kong’s position as a leading aviation hub,” said C Stewart-Cox, the company’s General Manager for South Asia, Middle East and Africa.

Kolkata is the sixth freighter destination in India along with Mumbai, Delhi, Chennai, Bengaluru and Hyderabad.

With the addition of Kolkata, the Cathay Pacific Group now has 25 freighter departures each week from India.

Rise in volumes for Cathay and Dragonair: Cathay Pacific Airways recently released combined Cathay Pacific and Dragonair traffic figures for the February, 2015. The two airlines carried 130,467 tonnes of cargo and mail in February, 2015, an increase of 28.8 per cent compared to the February, 2014. The cargo and mail load factor rose by 6.2 percentage points to 65.5 per cent. Capacity, measured in available cargo/mail tonne kilometres, rose by 25.6 per cent while cargo and mail revenue tonne kilometres (RTKs) flown climbed by 38.7 per cent. In the first two months of the year, tonnage rose by 19.6 per cent against a

he GVK managed Mumbai International Airport Ltd. (MIAL) has released a research study report conducted by independent agency, the National Council of Applied Economic Research (NCAER) titled ‘Economic Impact Study of CSIA, Mumbai’ according to which the Mumbai Airport is ranked first in India in handling international freight to the extent of about one-third of the country’s total international freight movement for the year 2012-13.

Jet Airways to start dedicated cargo operations J et Airways will start dedicated cargo operations in April this year, becoming the first private Indian airline to do so. The freighter services will be operated using an A330-200F aircraft wetleased from strategic-partner Etihad Airways and will have an operating base in New Delhi. The freighter services will operate to a number of international and domestic destinations including Bengaluru, Hong Kong, Hanoi and Singapore.

Cramer Ball, Chief Executive Officer, Jet Airways, said: “The launch of dedicated freighter operations is a landmark moment for Jet Airways as it en-

ables the airline to provide, for the first time, freighter services for customers in India and around the world.”

“In line with the ‘Guest First’ strategy that Jet Airways has implemented for its passenger services, Jet Airways Cargo has developed a wide range of service options to meet the growing needs of its customers, including express and valuable products. India is now the second fastest growing air cargo market in the world and this growth is expected to continue in line with the country’s economy and we look forward to cargo making a strong contribution to the annual revenues of Jet Airways,” he added.

NEWS IN BRIEF

Oman Air-Cargolux ties for India market

O

man Air has signed a Letter of Intent with Cargolux Airlines International S.A. to enable the freight specialist to use Oman Air’s facilities in Muscat, Salalah and Sohar. According to the terms of the agreement, Cargolux will launch its full freighter services connecting Luxembourg with India via Oman, from April 15, 2015.

Cargolux aims to augment its services connecting Oman this year. The airline intends to increase the weekly flights and establish more onward connections to Indian cities, including Chennai, Bombay and Hyderabad. The airline is also planning to start additional services for Indian cities, besides considering options to link with China, Europe, Africa and the US. “Oman’s natural harbours, positioned at the entrance of the Indian Ocean

and Arabian Gulf, and its proximity to the sub-continent, provide a major advantage over its competitors in the region,” said Paul Gregorowitsch, Chief Executive Officer, Oman Air. “Oman, therefore, has an excellent logistics chain for Cargolux to leverage and Oman Air is pleased and proud to be working with them to further expand the country’s cargo sector,” he added.

new taxiway, linking Amsterdam Airport Schiphol’s Kaag runway with the airport’s Sierra cargo zone, has halved live runway crossings for the many freighter aircraft that visit Schiphol every week. Schiphol Airport says that the new link is also cutting taxiing distances and hence fuel and CO2 emissions, as well as time. The Kaag runway and Sierra cargo zone are used increasingly by the many freighter flights operating into and out of Schiphol every week. The new taxiway enables landing aircraft to taxi direct to

capacity increase of 16.0 per cent and a 24.5 per cent rise in RTKs. “The high-year-on-year tonnage growth reflects the overall improvement in the world’s air cargo markets compared to early 2014, along with the extra capacity added by Cathay Pacific in response to the increase in demand. February’s figures were spurred by a surge in exports prior to Mainland factories shutting down for the Chinese New Year holidays. Demand fell away over the holiday period, as expected, but saw quite a rapid pick-up, particularly on the North American lanes,” said Mark Sutch, General Manager Cargo Sales & Marketing, Cathay Pacific.

TIACA’S WORKSHOP FOR NEXT GEN

New taxiway at Schiphol to boost safety

A

AIR 

the Sierra cargo area from the end of the runway, rather than routing back along the original taxiway stretching the entire length of the runway, and then waiting for clearance to cross the live runway.

Schiphol Cargo Senior Vice President Enno Osinga said: “The new Sierra taxiway has streamlined and improved our handling of freighter flights, saving time and money for our airline customers and improving safety. In addition, it has been an environmental success right from its inception, and will make a long-term contribution to our emissions targets. Once again, Schiphol is proving that cargo processes can always be improved, and that investments and innovation in cargo do provide real returns.”

TIACA’s latest Professional Development Workshop, held in Johannesburg, South Africa at the end of February inspired participants to see a bright future in air cargo. The three-day programme in conjunction with Air Cargo Africa, attracted 18 participants from across the air freight supply chain for an interactive educational experience reflecting real world air cargo business and operational situations.

The programme, designed by Strategic Aviation Services International (SASI), gave participants an appreciation of each different air cargo sector by encouraging discussion and the sharing of perspectives as well as providing practical advice and insight.

The course benefitted from active participation from various senior industry leaders, including TIACA Chairman Oliver Evans, Chief Cargo Officer at Swiss World Cargo, David Yokeum, President of WCA, Franz van Hessen, Director of Cargo and Sales, Koeln-Bonn Airport, and Stan Wraight, Senior Executive Director, SASI, and culminated in students delivering presentations reflecting real-life scenarios. Topics covered included market and competitive analysis, brand management, revenue management, understanding and analysing financial statements, business ethics, and leading teams.

Cargo & Logistics I March 2015

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NEWS IN BRIEF

SHIPPING AND PORTS 

Toyota to export through KPL

SHIPPING SAMVAD LAUNCHED Union Minister of Shipping, Road Transport and Highways, Nitin Gadkari launched a website, Shipping Samvad, recently. The objective of the website is to invite innovative ideas and suggestions from general public and experts related to Indian maritime sector for improvements in the shipping, ports and inland waterways sector. The ideas and suggestions submitted through this portal will be further examined for implementation by Ministry of Shipping and the workable ideas and suggestions will be published on this website. The Ministry of Shipping will also select the best five contributions in the year.

The Ministry will also upload the draft policies/new initiatives from time to time on the portal for the valuable suggestions/feedback from the citizen.

This will help Ministry of Shipping in bringing transparency and blue revolution in the country. The initiative is meant to engage the experts and common public in the development of Shipping, Ports and Inland Waterways in India and will provide impetus to the Ministry of Shipping in its efforts.

CAPACITY AT MAJOR PORTS SUFFICIENT The cargo handling capacity at the Major Ports is sufficient to meet trade demands, according to Pon Radhakrishnan, Minister of State for Shipping. The capacity of all Major Ports as on March 31, 2014 was 800.52 million tonnes (mt), against the cargo throughput of 555.54 mt handled in 2013-14. Capacity utilisation was thus around 70 per cent. As per internationally accepted norms, the gap between cargo handled and capacity should be around 30 per cent, the Minister told the Lok Sabha.

Connectivity of ports with National Waterways (NW), such as Haldia and Kolkata with NW 1 and 2, Cochin with NW 3, Kakinada and Krishnapatnam with NW 4, and Paradip and Dhamra with NW 5, will ensure better cargo movement from the ports to the hinterland and vice

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T

oyota Kirloskar Motor Pvt. Ltd. (TKM) announced the signing of a MoU with Kamarajar Port Ltd. (KPL) in order to help facilitate the expansion of its export business. TKM has entered into a 10-year agreement with the port, renewable at every 5 year. The agreement was signed by the company officials in the presence of Union Shipping Minister Nitin Gadkari and Minister of State for Shipping Pon. Radhakrishnan. “The MoU is a win-win for both as TKM will build a long-time relationship with the port, boosting its business and improving its commercial viability in a highly competitive market, and in return, TKM will benefit from the port related tariff concessions, giving a boost to its CBU for export to global markets,” said a release.

Speaking on the occasion T S Jaishankar, Deputy Managing Director said, “This MoU reconciles our strategic business direction of making India a global supply base. We strongly believe that India not only has the potential of being a huge market for sales, it also has the potential of being a supply base. This is also in line with our commitment to partner PM’s Make in India campaign and we are proud to take a step in that direction and help foster India’s economic growth.”

Major Ports to be developed: In his address Nitin Gadkari said, the government proposes to develop the 12 Major Ports in the country so that they along with the highways sector could contribute 2 per

cent of the GDP. The Minister said that Exports from Kamarajar Port (earlier known as Ennore) will touch 26,000 units this fiscal. Toyota Kirloskar has entered into a pact with the Port for long-term shipments of cars from there. He added that a slew of initiatives are being taken to develop not only the 12 Major Ports, but also the non-major ports that come under the control of maritime states.

VOC Port handles record traffic

V

.O. Chidambaranar Port handled record cargo traffic of 32.35 lakh tonnes in February 2015, surpassing the previous highest single month tonnage of 28.53 lakh tonnes handled in March 2014, according to an official release. The Port also achieved another landmark by handling 288.49 lakh tonnes of cargo till February 27, 2015, higher than the previous financial year’s 286.42 lakh tonnes, with more than one month left for the current financial year to end, the release added.

The major commodities which helped the Port to achieve the feat were coal, pet coke, copper concentrate, rock phosphate, construction materials, containerised cargo, oil cake copra, naphtha, furnace oil,

NEWS IN BRIEF

TCI adds coastal cargo services

SHIPPING AND PORTS  versa, the Minister said.

PPT SIGNS AGREEMENT WITH PICT

T

ransport Corporation of India (TCI) recently launched its cargo container shipping service at Mundra Port, Gujarat to Kochi, Kerala. The new acquisition called MV TCI Arjun will mark the beginning of coastal shipping services by TCI in the western coast. TCI Arjun will be used for transporting tiles, marble, sanitary wares, agro products, machineries, electronic & engineering and consumer products from Rajasthan, Punjab, NCR and Gujarat production areas for consumption in South. The vessel which of 10600 MT DWT can carry about 300 loaded containers from Mundra to Kochi and Kochi to

liquid ammonia and caustic soda lye, it added. The Port also crossed the previous year’s (2013-14) container traffic volume of 5,07,735 TEUs on March 3, 2015 by handling 5,08,678 TEUs.

Mundra. The vessel is also equipped with two cranes of SWL 60 MT to ensure fast and safe handling.

Chander Agarwal, Joint Managing Director, TCI said “TCI Arjun will be a valuable addition to TCI Seaways fleet and will further strengthen our position in the coastal shipping segment. Currently, we have launched one ship in the west coast and once the service is established, we will look at acquiring second vessel to expand our scope of services on the western coast.

We are hopeful that with this acquisition, we will be able to offer our customers cost effective multi-modal logistics services.”

CARGO HANDLING AT COCHIN PORT UP Cargo handling at the Cochin Port increased by 3.14 per cent to 18.02 million tonnes (mt), including containerised cargo, in the first 10 months of the current financial year up to January 2015 as against 17.47 mt handled during the period between April 2013 and January 2014, according to the data from Indian Ports Association (IPA). Container movement through the Port increased by 19,000 TEUs to 3,10,000 TEUs in the first 10 months of the current financial year, from 2,91,000 TEUs during the same period of last year.

Cochin Port handled a total of 20.89 mt of cargo, including containerised cargo in the whole of last financial year, while containerised cargo throughput in the last financial year stood at 3,46,204 TEUs, data from Cochin Port Trust revealed.

Paradip Port Trust (PPT) has signed a concession agreement with Paradip International Cargo Terminal (PICT) to construct a berth for container traffic and clean cargo handling. After the competitive bidding process, United Liner Agencies of India Pvt. Ltd (ULA), which is part of the J M Baxi Group, was selected as the operator for this terminal. A Concession Agreement was signed by M. T. Krishna Babu, Chairman of PPT, on behalf of Paradip Port, and Dhruv Krishna Kotak, Joint Managing Director, J M Baxi Group, on behalf of Paradip International Cargo Terminal Pvt. Ltd (PICT). The estimated cost of the project is `430.78 crore with a construction period of 3 years. Of this, an amount of `74.24 crore will be spent

by Paradip Port Trust towards capital dredging. A draught of 17.1 metres will be made available at this berth where Capesize vessels of 125,000 DWT can be handled. The remaining cost of `356.54 crore will be borne by the BOT operator.

The berth will have a length of 450 metres and a capacity of 5 million tonnes per annum. PICT shall be responsible for financing, designing, construction and commissioning of the project along with operation, management and maintenance under the concession agreement.

FPS LAUNCHES NEW LCL SERVICE Famous Pacific Shipping (FPS) has launched a new, weekly ocean Less than Container Load (LCL) service from Rotterdam, Netherlands to St. Petersburg, Russia and vice versa for general groupage cargo. The service provides a direct alternative to the historic routing via Vilnius, slashing transit times from 15 to 4 days. In addition to serving St. Petersburg, FPS can also offer on forwarding to several key inland destinations.

Clearance in Russia is performed at port or, where required, goods can be trucked in bond for clearance at final destination.

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NEWS IN BRIEF

Railways freight revenue up

LAND  DHL EXPRESS MORADABAD

TO

SERVE

DHL Express recently inaugurated a new service centre facility in Moradabad, Uttar Pradesh. The facility was inaugurated by Mohammad Abbas, President, Moradabad Handicraft Export Association and R S Subramanian, Senior Vice President & Managing Director, DHL Express India. Located centrally the facility will serve as a pick-up, delivery and sorting centre.

It will allow for early delivery of import shipments and later pick-ups of export shipments, giving customers more time and flexibility to work.

On the occasion R S Subramanian said, “The investment in a service centre facility in Moradabad is part of DHL’s investment strategy as we continue to bolster our infrastructure and upgrade capabilities to accommodate growth in North India. The service centre will facilitate better connectivity; enable us to respond quickly and efficiently to the growing international trade of customers in Moradabad and surrounding areas.”

SWISSPORT SIGNS CONTRACT WITH CARGOFLASH CargoFlash Info Tech recently announced addition of Truck Slot and Door Management System (DMS) module to their existing suite of Cargo offerings. This module will be implemented as a standalone module at Swissport and the same will be seamlessly plugged into other modules of CargoFlash. System will aid better planning of trucks coming in and out of warehouses by enabling booking of slots/gates prior to arrival and truck management. By using various complex algorithms and configurations system prevents bottle necks for trucks at the gates thus improving time and increasing efficiency of handling functions.

Pedro Garcia (VP Cargo Information Technology, Swissport) “We are happy to award development of Truck

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T

he railways reported a 12.75 per cent increase in revenue earnings from commodity-wise freight traffic during April-February 2014-15. According to the railways, it generated revenue worth `95,136.34 crore from commodity-wise freight traffic during the period under review from `84,379.49 crore earned during the corresponding period of last year.

The railways’ commodity-wise freight traffic during April-February 2014-15 rose 4.51 per cent. It carried 966 million tonnes of commodity-wise freight traffic during April-February 2014-15 from 953.05 million tonnes ferried during the corresponding period of last year. During February 2015, railways’ revenues generated from com-

modity-wise freight traffic grew by 15.85 percent and stood at `9,127.09 crore from `7,878.48 crore earned during the same period last year.

UNIT FOR HANDLING LOGISTICS: The Indian Railways will set up a new stateowned entity, Transport Logistics Corporation of India (TRANSLOC), by July to handle transport logistics, a senior official said. “The railways have already moved a Cabinet note to this effect.

We expect the new entity (TRANSLOC) would be created in next 4-5 months to attain the objectives of implementing railways projects through public private partnership (PPP) route,” said a PHD Chamber of Commerce press release quoting Rail Ministry ED-Traffic/PPP M S Mathur.

Safexpress now in Jammu

S

upply chain and logistics firm Safexpress has opened a new logistic park in Jammu. Spread across 80,000 square feet, this ultra-modern Logistics Park is strategically located on the Jammu-Pathankot National Highway 1A. Logistics Park at Jammu has a column-less span of over 100 feet and enables loading/unloading of over 26 vehicles simultaneously. It also has a floor load capacity of 6 metric tonnes per square metre and has a truck docking area width of over 40 feet.

Speaking at the launch ceremony,

Rubal Jain, Director (Corporate Strategy), Safexpress said, “Jammu is a key city in northern India and has a number of small industries. From the supply chain and logistics perspective, Jammu holds strategic importance due to its location, skilled manpower and favorable government policies. This facility will serve as a trans-shipment hub as well as a warehousing facility. It will also help the industries in the Jammu belt in getting access to our world-class supply chain and logistics services, which would contribute heavily in the economic growth of this region.”

NEWS IN BRIEF

CEVA opens new headquarter in Singapore

C

EVA Logistics opened its largest facility and the new headquarters for South East Asia in Singapore. The West Hub occupies 48,000 square metres of warehouse and office space, with more than 300 personnel serving multi sector customers at the facility.

CEVA’s CEO, Xavier Urbain, said: “I am very pleased our footprint is growing in South East Asia, and particularly in Singapore, as a strategic hub in Asia and a conduit for world trade. This is an investment we are making in Asia to strengthen our presence and address the growth potential here. It is estimated that by 2020, more than 50% of the world’s middle income will come from Asia. This presents both opportunities and supply chain challenges for businesses. CEVA is well placed in this part of the world to support our customers’ business growth.”

CITY OF ENERGY: At the same event, CEVA also announced the launch of its

ontainer Corporation of India Ltd (CONCOR) introduced a new weekly container train service from ICTT/ Vallarpadam (Cochin) to ICD Tondiarpet

Door Management system to CargoFlash Info tech. Their existing base product, novel approach to implementation and project management were key factors for our decision. We look forward to their delivery of the system at high quality and on schedule.”

DHL IS CHINA FOOD FAIR PARTNER

City of Energy in Singapore located at the West Hub. The City of Energy is a fully dedicated hub for the warehousing, cross docking, flow management and handling of Oil and Gas products and services for the Energy sector. The energy hub, covering a total warehouse space of 26,000 square metre and over 5,000 square metre open yard space for energy customers, is well located with easy access to Jurong port and major highways. The City of Energy, Singapore will serve CEVA’s energy sector customers, many of whom use Singapore as a regional base for their Oil and Gas operations in Asia.

New weekly train by CONCOR

C

LAND 

(TNPM), Chennai. The first container train carrying rake load of costal containers was despatched on March 10, 2015 from Vallarpadam and reached TNPM on March 11, 2015. The new stream to Chennai is likely to support the hinterland connectivity of coastal containers arriving in scheduled ships at Cochin from Gujarat.

The return train will carry coastal loads, coastal empties & Export Import loads to Vallarpadam. The new stream will facilitate movement of Export Import loads (both export and Import) via ICTT, Vallarpadam to/from Chennai.

DHL has been named official logistics partner for China Food and Drinks Fair for the second consecutive year. DHL Trade Fairs and Events China, a part of DHL Global Forwarding, will be the service provider for top exhibitors at China’s largest food and drinks fair being held at the Century City New International Convention & Exhibition Centre (CCNICEC) in Chengdu from March 26-28, 2015.

The fair is expected to host 3,000 exhibitors and attract 300,000 local and overseas visitors and generate an estimated total turnover of RMB 20 billion.

Kelvin Leung , CEO, DHL Global Forwarding Asia Pacific said: “The reappointment of DHL Trade Fairs & Events is a strong sign that our expertise in specialist trade fair and events logistic services is what the industry has been looking for in China . For trade fairs and exhibition organisers, partnering a global logistics company like ours gives exhibitors access to our global network to ship goods from anywhere in the world, using a variety of transport modes that best suit their requirements.”

KIWI LOGISTICS IS GSA FOR COYNE AIRWAYS Coyne Airways has appointed KIWI Logistics Cargo GSA as its General Sales Agent in Singapore. Established in 2013, KIWI Logistics Cargo GSA is bringing a fresh approach to airline cargo sales in this developed market, with a focus on efficiency, simplicity and reliability.

“We are delighted to be working with this young and ambitious GSA that shares many of the same values on which Coyne Airways was founded over 20 years ago,” said Coyne Airways CEO Larry Coyne .

Cargo & Logistics I March 2015

35

NEWS IN BRIEF

Shipbuilding Sector seeks help

Task force for highways & ports

T

he Union government has formed a 10-member task force headed by the Minister for Road Transport, Highways and Shipping, Nitin Gadkari, including former Infosys CFO, Mohandas Pai. The purpose of the task force is to help drive new technology initiatives for roads, highways and ports to assist in integrating existing e-governance and other technology projects under one umbrella, sources revealed.

It would work on new policies under a four-year plan. Other members of the task force include Sanjay Jaju, former IT Secretary for Andhra Pradesh and Director of National Highways Infrastructure Development Corporation, Abhijit Purushottam Desai, a partner at Ekam Consulting, Prashant Pole, Director of Disha Consultants, and Girish Srivastava, a policy and strategy consultant.

he government has received several critical suggestions from different stakeholders to promote the local shipbuilding industry, Parliament was informed recently. “Shipbuilding industry being globalised in nature, the present global downturn has also affected the domestic shipbuilding industry,” Minister of State for Shipping, Pon Radhakrishnan said in a written reply to Lok Sabha adding that the shipbuilding subsidy was released to Indian shipyards till March 31, 2014.

Major suggestions received by the government from various stakeholders for promotion of local shipbuilding industry includes measures for financial assistance; grant of infrastructure status; domestic eligibility criteria; tax incentives and special dispensation for stressed shipyards, Radhakrishnan added.

T

APPOINTMENTS

GEODIS INDIA

G

eodis India has announced the appointment of Martijn Tasma as National Sales Manager. Martijn has the overall responsibility for sales & market development of Geodis’ Freight Forwarding and Logistics business line in India. The main priorities of the new National Sales Manager will be to strengthen and increase the company’s trade lane activities, particularly with a focus on Brazil, China and the USA, and to expand the business in key market segments such as Fashion, Retail, Industrial, Automotive, Hi-tech and Pharma.

AIR FRANCE-KLM

B&H WORLDWIDE

A

B

ir France-KLM has confirmed the appointment of Bram Graber as the temporary Executive Vice President of its cargo unit.

He will replace Erik Varwijk. “Graber will combine this role with his current position as EVP Transavia Air France-KLM. This appointment will be in place for the next months, until further decisions are made,” the European airline group said.

36

March 2015 I Cargo & Logistics

&H Worldwide has announced the appointment of Doug Coull to the newly-created position of Senior Regional Director.

Coull is now responsible for B&H’s activities in Western Europe and the Americas where he will lead the teams managing and developing the company’s brand and business.

He will report directly to the company’s global CEO, Stuart Allen.

AWARDS

CHEP Aerospace CHEP Aerospace Solutions recently announced that CanTrack, its energy-harvesting tracking solution for ULDs, has won the inaugural IATA Air Cargo Innovation Award at the World Cargo Symposium (WCS) held in Shanghai. CanTrack is an energy-harvesting self-powered tracking device that is fitted on the container and is integrated with a back-end information system, providing real-time information on the ULD and its cargo.

Kale Logistics Kale Logistics announced that it has won Best IT Solutions Provider of the Year-2015 at this year’s Indian Logistics & Supply Chain Summit organised by the Indian Chamber of Commerce (ICC). Kale has been recognised successively at prominent industry forums for its global and industry focused IT solutions.

Vipul Jain, Chairman & Managing Director, Kale Logistics said, “We are very pleased to accept this recognition, especially coming from a prestigious industry body like ICC. It only gives further impetus to our efforts at unifying the Indian Logistics industry with their Global counterparts and deliver innovative and industry compliant systems.”

Amsterdam Airport Amsterdam Airport Schiphol has once again been ranked top major European airport, in this year’s Air Cargo Excellence Survey. The airport section of the Air Cargo Excellence Awards is based on airlines’ votes on performance, value, facilities and operations. Schiphol’s 2015 overall winning score of 116 points shows yet another improvement on its performance of recent years: in 2012 it scored 103 points, 106 in 2013 and 113 in 2014 respectively.

PRODUCT

NaviTab system will do away with library

N

orwegian marine publisher Nautisk has launched its new NaviTab system, a product which aims to replace a vessel’s onboard Navigational Publication library with an electronic database housed on a tablet computer. The NaviTab, a high-spec Lenovo tablet housed in a rugged case and equipped with Nautisk’s publications – which include sailing directions, lists of lights as well as International Maritime Organisation (IMO) rules and guidelines – aims to save operators both the weight and space cost of paper publications, as well as the logistical problems of updating the books.

The NaviTab comes equipped with a dock allowing publications to be instantly updated through a ship’s internet connection. The tablet also offers functions allowing users to search and annotate documents.

Nautisk will begin shipping NaviTab to customers worldwide soon. The tablet will be available for £1,980 including software, with publications paid for individually.

“Managing publications is a big administrative burden and can have expensive consequences if materials are not up-to-date, including ships being detained. We ship around 420 tonnes of paper a year and our average air freight distance is more than 5,000km.

You never know where a ship might be at port or for how long,” said Peter Johan Pran, Head of Global Sales, Nautisk. “We see digitisation happening with publications much faster than with charts. A major benefit is the reduction in shipping costs. With NaviTab worldwide trading vessels will make back the cost of the tablet within one year on saved air freight costs,” he added.

Most powerful cargo X-ray scanner

I

n a great move to enhance the security of cargo, AMI’s London Heathrow facility has installed the most powerful cargo X-ray scanner available. The new scanner is a product of Astrophysics Inc., provider of a wide range of Transportation Security Administration (TSA) qualified X-ray inspection systems for air cargo screening, as well as general cargo, package, or pallet screening. The XIS-1818 DV is a state-of-the-art dual view machine with a 180x180 cm tunnel aperture. Its powerful 320 kv generator enables it to penetrate up to 80 mm thick steel – almost double the capability of most machines currently in use. This increased penetration dramatically reduces the number of shipments requiring secondary screening using techniques such as hand searching and ETD (Explosive Trace Detection).

The machine – which measures an impressive 1116.4 cm x 310.5 cm x 314.3 cm – benefits from a low conveyor height of just 34.4 cm and can support 3000 kg of cargo without impairing its throughput speed.

The new

machine joins AMI’s existing Heathrow X-ray equipment, providing greatly-increased total screening capacity. Matched with Astrophysics exclusive software and superior technology, the XIS-1818 is the quality system for large scale screening needs.

“The new machine at our LHR facility has revolutionised our operation. In its first four weeks of service, only five shipments have required further screening – meaning we have successfully enhanced throughput for our customers. In addition, AMI Manchester is now fully self-sufficient in screening terms as a result of the new machine’s arrival, and our investment in ETD equipment and training. Overall, we have successfully upgraded the speed and efficiency at both our Heathrow and Manchester sites,” said Matt Johnson, General Manager – Operations, AMI UK. AMI has also installed a similar new X-ray machine in its Manchester Airport facility; this is a more compact version which can still accommodate 180x180 cm items, but has a smaller (200kv) generator.

Cargo & Logistics I March 2015

37

PRODUCT

Lightest pallet yet

J

ettainer, the leading international service partner for outsourced ULD management, is developing an innovative lightweight pallet that weighs just 70 kg. Compared to a Carsten Hernig traditional PMC aluminium pallet, the new lightweight version developed by Jettainer is a full 32 kilos lighter. It is made of a composite material that is being used in the aviation sector for the very first time.

The weight savings of more than 30 per cent make it possible to significantly reduce the fuel consumption of aircraft. In the past, manufacturers only managed to make pallets lighter by using thinner aluminium bases. As a result, they had to be specially reinforced when transporting fairly heavy items. All traditional aluminium bases shared this drawback in the past. The particularly tough and stable material used for the new kind of pallet, which is manufactured with a sandwich design, is suitable for most cases without the need to use heavy-duty bases to stabilise the load. This ensures that the total weight is once again significantly lower.

Jettainer is exclusively working with several partners in the development of the new lightweight pallet. The initial trial phase has already been completed. A longterm test is taking place in March within the context of selected road feeder services – initially in trucks with a roller bed – in order to obtain as realistic load results as possible. “Our innovative products are being comprehensively tested in real conditions so that we can even use our customers’

feedback during the development phase,” says Carsten Hernig, Managing Director of Jettainer GmbH. He adds, “In the end we want to offer our customers a globally unique and perfect product that will only be available from Jettainer.”

Certification by the European Aviation Safety Agency (EASA) is due to take place in mid-2015. After this, the new lightweight pallets will create significant fuel savings in the aviation sector.

Tracking shipments is easy

I

magine being able to track and monitor precious cargo on land, sea, and even in the air with a single device. This is possible using AT&T Cargo View with FlightSafe, a turnkey application that allows you to monitor and track global assets using near real-time location and sensor information. By packing the device in the container with the freight, shippers will be constantly informed of the location, temperature and condition of each load using cloud-based software. Upon arrival, shipper needs to return the device to the charging rack for your next shipment. To be FAA-compliant, the

38

March 2015 I Cargo & Logistics

Cargo View device has a flight safe feature that automatically enables airplane mode, so its signal will not interfere with pilots’ communication. At the end of the flight, however, it transmits all of the data that was accumulated during the flight. Data is continuously stored in the AT&T database and transmitted to the forwarder by email.

With AT&T Cargo View, shippers can: • Instantly respond to time-critical and temperature-sensitive situations to mit-

•

•

•

igate risks of delays and disruptions Eliminate the expense, time and effort of manually searching for and replacing lost shipments Improve customer communication and service levels via access to near real-time data Optimise supply chain processes, using historical data from past shipments to improve control over transportation operations

PRODUCT

Amazon’s drones get the ‘go’ signal T

C&L

in all UAS experimental airworthiness certificates.

The test flights will be conducted over private rural land in Washington state. Amazon was testing the unmanned aircraft indoors in one of its facilities in Washington.

Amazon also has tested drones outside the U S in countries with looser restrictions.

Amazon has named its project as ‘Prime Air’. “A future delivery system from Am-

Cargo and Logistics

azon designed to safely get packages into customers’ hands in 30 minutes or less using small unmanned aerial vehicles. Putting Prime Air into service will take some time, but we will deploy when we have the regulatory support needed to realise our vision,” said company on its website.

The drones would be able to carry loads up to five-pounds within a 10-mile radius of an Amazon warehouse.

{ SAVE `432/FOR 36 ISSUES

{

he US Federal Aviation Administration (FAA) recently issued an Experimental Airworthiness Certificate (EAC) to an Amazon Logistics Unmanned Aircraft Systems (UAS) design that the company will use for research and development and crew training. The FAA typically issues experimental certificates to manufacturers and technology developers to operate a UAS that does not have a type certificate.

Under the provisions of the certificate, all flight operations must be conducted at 400 feet or below during daylight hours in visual meteorological conditions. The UAS must always remain within visual line-of-sight of the pilot and observer. The pilot actually flying the aircraft must have at least a private pilot’s certificate and current medical certification. The certificate also requires Amazon to provide monthly data to the FAA. The company must report the number of flights conducted, pilot duty time per flight, unusual hardware or software malfunctions, any deviations from air traffic controllers’ instructions, and any unintended loss of communication links. The FAA includes these reporting requirements

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You Save

STATS

INTERNATIONAL FREIGHT INTERNATIONAL FREIGHT AIRPORT

SL. NO.

JANUARY 2015

ANNEXURE-IVA

FREIGHT (IN TONNES) For the period April - January % % 2014-15 2013-14 Change Change

For the month JANUARY 2014

(A) 18 INTERNATIONAL AIRPORTS 1

CHENNAI

16113

16190

-0.5

184791

183591

2

KOLKATA

3822

3668

4.2

40405

37657

7.3

3

AHMEDABAD

1214

1244

-2.4

14635

13282

10.2 -38.2

0.7

4

GOA

97

210

-53.8

997

1614

5

TRIVANDRUM

2576

2077

24.0

24013

23184

3.6

6

CALICUT

1886

1706

10.6

18193

18792

-3.2

7

LUCKNOW

108

145

-25.5

1152

993

16.0

8

GUWAHATI

1

21

-95.2

13

32

-59.4

9

SRINAGAR

0

0

-

0

0

-

10

JAIPUR

76

19

300.0

557

193

188.6

0

0

-

0

0

357.9

11

BHUBANESWAR

12

MANGALORE

38

12

216.7

261

57

13

COIMBATORE

55

69

-20.3

742

803

-7.6

14

AMRITSAR

17

13

30.8

416

1320

-68.5

15

TRICHY

484

440

10.0

3929

3885

1.1

16

VARANASI

0

0

-

0

0

-

17

PORTBLAIR

0

0

0

0

18

IMPHAL

0 26487

0 25814

-

0 290104

0 285403

1.6

TOTAL

2.6

(B) 6 JV INTERNATIONAL AIRPORTS 19

DELHI (DIAL)

33391

32018

4.3

355569

322923

10.1

20

MUMBAI (MIAL)

38758

37724

2.7

402155

386285

4.1

21

BANGALORE (BIAL)

12666

12187

3.9

137782

124511

10.7

22

HYDERABAD (GHIAL)

4094

4012

2.0

45397

40953

10.9

23

COCHIN(CIAL)

3736

3440

8.6

51654

34417

50.1

24

NAGPUR (MIPL)

46

46

0.0

347

343

1.2

92691

89427

3.6

992904

909432

9.2

TOTAL (C) 7 CUSTOM AIRPORTS 25

PUNE

0

0

-

0

10

-100.0

26

VISAKHAPATNAM

0

0

-

0

0

-

27

PATNA

0

0

-

0

0

-

28

CHANDIGARH BAGDOGRA

0

0

-

0

0

-

MADURAI

0 0

0 0

-

3 1

0 1

0.0

GAYA

29 30

0

0

-

0

0

-

TOTAL

31

0

0

-

4

11

-

(D) 17 DOMESTIC AIRPORTS

0

0

-

86

0

-

(E) OTHER AIRPORTS GRAND TOTAL (A+B+C+D+E)

0

0

-

0

0

-

119178

115241

3.4

1283098

1194846

7.4

Source: AIRPORTS AUTHORITY OF INDIA

Cargo & Logistics I March 2015

41

STATS

DOMESTIC FREIGHT DOMESTIC FREIGHT SL. NO.

AIRPORT

JANUARY 2015

(A) 18 INTERNATIONAL AIRPORTS 1 CHENNAI 2 KOLKATA 3 AHMEDABAD 4 GOA 5 TRIVANDRUM 6 CALICUT 7 LUCKNOW 8 GUWAHATI 9 SRINAGAR 10 JAIPUR 11 BHUBANESWAR 12 MANGALORE 13 COIMBATORE 14 AMRITSAR 15 TRICHY 16 VARANASI 17 PORTBLAIR 18 IMPHAL TOTAL (B) 6 JV INTERNATIONAL AIRPORTS 19 DELHI (DIAL) 20 MUMBAI (MIAL) 21 BANGALORE (BIAL) 22 HYDERABAD (GHIAL) 23 COCHIN(CIAL) 24 NAGPUR (MIPL) TOTAL (C) 7 CUSTOM AIRPORTS 25 PUNE 26 VISAKHAPATNAM 27 PATNA 28 CHANDIGARH 29 BAGDOGRA 30 MADURAI 31 GAYA TOTAL (D) 15 DOMESTIC AIRPORTS 32 INDORE 33 JAMMU 34 RAIPUR 35 AGARTALA 36 VADODARA 37 RANCHI 38 AURANGABAD 39 UDAIPUR 40 BHOPAL 41 LEH 42 DEHRADUN 43 RAJKOT 44 JODHPUR 45 TIRUPATHI 46 DIBRUGARH (D) 17 DOMESTIC AIRPORTS (E) OTHER AIRPORTS GRAND TOTAL (A+B+C+D+E)

For the month JANUARY 2014

ANNEXURE-IVB

FREIGHT (IN TONNES) For the period April - January % % 2014-15 2013-14 Change Change

6284 6768 3324 302 165 19 275 962 346 329 581 27 537 12 0 72 231 386 20620

5441 6919 3086 303 136 9 305 797 277 618 265 22 483 12 0 27 262 342 19304

15.5 -2.2 7.7 -0.3 21.3 111.1 -9.8 20.7 24.9 -46.8 119.2 22.7 11.2 0.0 166.7 -11.8 12.9 6.8

67365 75333 35065 2699 1044 292 2846 8320 5200 1747 4460 302 6239 297 0 552 2509 3785 218055

59372 70085 29997 2205 1577 135 2567 6027 3165 6036 3174 243 5083 106 0 351 2222 3414 195759

13.5 7.5 16.9 22.4 -33.8 116.3 10.9 38.0 64.3 -71.1 40.5 24.3 22.7 180.2 57.3 12.9 10.9 11.4

23107 16305 9178 3892 904 480 53866

19480 14844 7833 3340 852 492 46841

18.6 9.8 17.2 16.5 6.1 -2.4 15.0

226985 175227 95122 36481 9362 4722 547899

177736 151473 76530 30961 7948 4342 448990

27.7 15.7 24.3 17.8 17.8 8.8 22.0

2203 72 435 175 13 67 0 2965

1774 152 432 190 187 103 0 2838

24.2 -52.6 0.7 -7.9 -93.0 -35.0 4.5

23017 2643 4368 3674 2232 926 0 36860

508 120 361 325 197 320 96 4 78 113 4 11 1 6 42 2186 146 79783

465 136 344 330 199 241 69 0 84 86 0 8 1 0 24 1987 127 71097

9.2 -11.8 4.9 -1.5 -1.0 32.8 39.1 -7.1 31.4 37.5 0.0 75.0 10.0 15.0 12.2

5354 1375 3391 4934 1696 2801 1058 22 773 1099 32 109 10 6 254 22914 1290 827018

17393 1391 3867 2776 1713 1026 028166 3809 1412 2747 5409 1729 2039 696 0 715 905 0 138 16 0 234 19849 1332 694096

32.3 90.0 13.0 32.3 30.3 -9.7 30.9 40.6 -2.6 23.4 -8.8 -1.9 37.4 52.0 8.1 21.4 -21.0 -37.5 8.5 15.4 -3.2 19.2

Source: AIRPORTS AUTHORITY OF INDIA

42

March 2015 I Cargo & Logistics

Now

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Services

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POBC Service covers all Airports in India(125 + Air stations) POBC Guarantees 24 Hours delivery of shipment anywhere in India Patel Logistics Operates 60,000+ Sq Ft of Warehouse in Chennai

Connectivity. Control. Reliability.

Registered & Head Office:

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Tel : 022-26050021 / 2915 / 3915 Fax : +91 22 2605 2554 / 8420 www.patel-india.com

STATS

INTERNATIONAL &(INT'L+DOM.) DOMESTIC FREIGHT FREIGHT SL. NO.

AIRPORT

JANUARY 2015

(A) 18 INTERNATIONAL AIRPORTS 1 CHENNAI 2 KOLKATA 3 AHMEDABAD 4 GOA 5 TRIVANDRUM 6 CALICUT 7 LUCKNOW 8 GUWAHATI 9 SRINAGAR* 10 JAIPUR 11 BHUBANESWAR 12 MANGALORE 13 COIMBATORE 14 AMRITSAR 15 TRICHY 16 VARANASI 17 PORTBLAIR 18 IMPHAL TOTAL (B) 6 JV INTERNATIONAL AIRPORTS 19 DELHI (DIAL) 20 MUMBAI (MIAL) 21 BANGALORE (BIAL) 22 HYDERABAD (GHIAL) 23 COCHIN(CIAL) 24 NAGPUR (MIPL) TOTAL (C) 7 CUSTOM AIRPORTS 25 PUNE 26 VISAKHAPATNAM 27 PATNA 28 CHANDIGARH 29 BAGDOGRA 30 MADURAI 31 GAYA TOTAL (D) 15 DOMESTIC AIRPORTS 32 INDORE 33 JAMMU 34 RAIPUR 35 AGARTALA 36 VADODARA 37 RANCHI 38 AURANGABAD 39 UDAIPUR 40 BHOPAL 41 LEH 42 DEHRADUN 43 RAJKOT 44 JODHPUR 45 TIRUPATHI 46 DIBRUGARH (D) 17 DOMESTIC AIRPORTS (E) OTHER AIRPORTS GRAND TOTAL (A+B+C+D+E)

NOTE:

For the month JANUARY 2014

ANNEXURE-IVC

FREIGHT (IN TONNES) For the period April - January % % 2014-15 2013-14 Change Change

22397 10590 4538 399 2741 1905 383 963 346 405 581 65 592 29 484 72 231 386 47107

21631 10587 4330 513 2213 1715 450 818 277 637 265 34 552 25 440 27 262 342 45118

3.5 0.0 4.8 -22.2 23.9 11.1 -14.9 17.7 24.9 -36.4 119.2 91.2 7.2 16.0 10.0 166.7 -11.8 12.9 4.4

252156 115738 49700 3696 25057 18485 3998 8333 5200 2304 4460 563 6981 713 3929 552 2509 3785 508159

242963 107742 43279 3819 24761 18927 3560 6059 3165 6229 3174 300 5886 1426 3885 351 2222 3414 481162

3.8 7.4 14.8 -3.2 1.2 -2.3 12.3 37.5 64.3 -63.0 40.5 87.7 18.6 -50.0 1.1 57.3 12.9 10.9 5.6

56498 55063 21844 7986 4640 526 146557

51498 52568 20020 7352 4292 538 136268

9.7 4.7 9.1 8.6 8.1 -2.2 7.6

582554 577382 232904 81878 61016 5069 1540803

500659 537758 201041 71914 42365 4685 1358422

16.4 7.4 15.8 13.9 44.0 8.2 13.4

2203 72 435 175 13 67 0 2965

1774 152 432 190 187 103 0 2838

24.2 -52.6 0.7 -7.9 -93.0 -35.0 4.5

23017 2643 4368 3674 2235 927 0 36864

17403 1391 3867 2776 1713 1027 0 28177

32.3 90.0 13.0 32.3 30.5 -9.7 30.8

508 120 361 325 197 320 96 4 78 113 4 11 1 6 42 2186 146 198961

465 136 344 330 199 241 69 0 84 86 0 8 1 0 24 1987 127 186338

9.2 -11.8 4.9 -1.5 -1.0 32.8 39.1 -7.1 31.4 37.5 0.0 75.0 10.0 15.0 6.8

5354 1375 3391 4934 1696 2887 1058 22 773 1099 32 109 10 6 254 23000 1290 2110116

3809 1412 2747 5409 1729 2039 696 0 715 905 0 138 16 0 234 19849 1332 1888942

40.6 -2.6 23.4 -8.8 -1.9 41.6 52.0 8.1 21.4 -21.0 -37.5 8.5 15.9 -3.2 11.7

Biju Patnaik Airport, Bhubaneswar, Odisha and Imphal Airport, Manipur airports declared as International airports vide Notification No.AV.20014/003/98-VB(AAI) dated 14th November, 2013 by Ministry of Civil Aviation, Government of India.

Source: AIRPORTS AUTHORITY OF INDIA

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March 2015 I Cargo & Logistics

WOMEN IN CARGO

“Cargo industry is vast and each day is a learning opportunity” Tavishi Ipsita simply loves the cargo industry. Her decision to move to cargo was a conscious one and she has never regretted it. Today, her hands-on experience of the industry has come as a great help in her move to the field of technology as she told C&L Cargo is essentially a male-dominated industry. How did you find yourself in it?

“When there is a will there is a way”. I agree that the percentage of women in cargo is far less in comparison to male counterparts.

But I joined the industry when the times were changing. Cargo is my passion and I enjoy being part of the cargo industry.

If you are determined to achieve something and have set your goals then surely you will achieve them. As a woman, luckily so far in my career I have not faced any trouble, thanks to all my organisations that have given me equal opportunity as my male colleagues.

How many years have you been with the cargo industry and how has the journey been this far?

It’s more than nine years that I have been in the cargo industry. Building a career in cargo was my choice: I did my post-graduation in Travel and Tourism with specialisation in Air cargo Operations and Management.

The key to my journey is all about learning, knowledge sharing and determination to my work. Also the certifications from IATA have helped me a lot to add dimension to my career and give me a leading edge.

I worked in the airline cargo industry for almost six years and then moved to IT as a Cargo Domain consultant. The transition from the core airline cargo background to IT is a unique experience in itself. It is an overwhelming experience for me to know that with my industry knowledge I am contributing in the development of a cargo management system. Development and Implementation of an IT project for Airline/ CTO has provided me great scope for value addition and has been a catalyst to enhance my knowledge base.

Currently, I am associated with Accenture as part of the Freight and Logistics Software Product Management Team. I can proudly say that choosing a career in cargo was a right, wise and rational decision.

How have your colleagues and those reporting to you reacted to you?

I have been quite lucky throughout my career as I have always been with supportive colleagues who were keen learners themselves. I got great mentors from whom I learned about cargo and the industry. I believe that knowledge sharing is one of the keys that act as a two-way communication for competency development. It feels nice

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when people who you have trained in the early stages of their career still remember you with respect.

Do you specialise in any section of the industry: e.g. handling of dangerous goods, etc.?

Apart from my major in Air Cargo Operation and Management, I have IATA certification in Air Cargo Basic and Advance Rating. I also have specialisation in IATA e-AWB implementation and e-freight.

What is so exciting about the cargo industry that keeps you attracted to it?

The cargo industry is vast and each day there is a learning opportunity. I am very keen to learn all new upcoming developments in the cargo industry. The industry is progressing in leaps and bounds with all new initiatives like e-freight, e-AWB, CXML, e-booking, etc. With all the latest developments, our customers know exactly what they want and they too are moving towards automation of the business processes. So, working towards fulfilling their requirements, providing them the solution with an automated system, blend of traditional process with the latest technology is quite challenging and that is what motivates me.

How confident are you about future growth on equal opportunity basis with male colleagues?

I strongly believe if you have knowledge and the opportunity comes your way…

Currently I am associated with an organisation whose core values vouch for equal opportunity. As Sidonie Gabrielle Colette said “The woman who thinks she is intelligent demands equal rights with men.

A woman who is intelligent does not.”

RNI No. DELENG/2011/387546