Aircargopedia Newsblast: August 2017!
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21st August 2017  
 


Dear Air Cargo Professional:

As you all know well by now, I travel a great deal to attend conferences all over the world. In this way, I combine my love for travel with my insatiable curiosity and desire to continuously learn. In spite of globalization, I have found that not every player has the same access to knowledge and intelligence, and even if they do, they may not apply it in the same way.

Aviation conferences are almost always passenger focused, unless the conference is specifically catering to a cargo audience. How can we blame airline CEO's for filling most of their speeches with passenger driven issues?
  DJ Ghosh

In the USA where annual revenues of the airlines majors easily top 30-40 billion US dollars, the share of air cargo revenues rarely exceeds US$1 billion; less than 5%. As a regular at the Wings Club, New York, where US and global airline CEO's regularly make presentations, the only CEO of a combination carrier that I ever recall making any reference to air cargo was from Cathay Pacific, where moving freight is an airline priority.

Getting the attention of a CEO is a serious business. In many ways it is a skill that is acquired through years of practice and much effort. How do we move an air cargo agenda forward in an airline where passengers dominate and are more profitable most of the time? How do we get airlines to incorporate cargo into their everyday planning for aircraft, personnel and equipment? What are the flags that will spur airline heads to sit up and take notice of air cargo?

QUALITY OVER QUANTITY:
I truly believe that the answer lies in specialization and working to improve air cargo yields rather than volumes; quality over quantity. This takes a lot of discipline. It takes the courage to often say no to business propositions that make very little financial sense. It forces us to drill deeper and utilize more sophisticated analytical tools to uncover more information and value and create bespoke products based on this new intelligence. In the medical field, pioneers are already creating bespoke drugs that treat unique illnesses of individual patients. Why can't we use this framework in the air cargo world with its myriads of unique products and destinations. It is only then that we will get the attention that we truly deserve.

Something to ponder about till we meet on September 6th for the Air Cargo Industry Affairs Summit in Washington, DC, the Cool Chain and Air Cargo Handling/ULD Conference in Budapest from September 18th-21st, and the Freighters World Conference in Chicago from September 25th-27th. All of these are 'must attend' events, with the 'who's who' of air cargo in attendance, so if you have not registered yet, please visit aircargopedia.com to find out on how you can.


All the best

D.J. Ghosh
President & Publisher
AIRCARGOPEDIA
WWW.AIRCARGOPEDIA.COM
”The Complete Encyclopedia for the Air Cargo Professional & Investor”


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Jettainer offers leasing option for flying stables

Frankfurt, 18 August 2017

Jettainer, the leading international service partner for outsourced ULD management, is expanding its leasing services. Comfortable transport boxes for horses can now be made available at short notice. The special ULDs can be leased for one day or up to several months. A wide variety of ULDs can be leased from Jettainer at times of peak demand via its 24-hour hotline.

Jettainer Horsestalls

The stables are now available for transporting the elegant four-legged creatures above the clouds from the JettHub in Frankfurt – and, if required, from any other destination around the globe. The special design of the horseboxes, which can transport up to three animals, not only makes it easy for the animals to enter with its particularly broad ramp, but it also has an adjustable partition in the upper area that provides ideal visual protection between the horses. Modern polymer materials inside the box and a non-slip stand ensure that the animals can travel without injuring themselves.

Jettainer Horsestalls

If the horsebox has to be returned empty, it can be collapsed using a foldable “drop top” and transported on the lower deck to save space. This means that the flying horseboxes are not only safe and comfortable for the animals, but are also efficient and save space when being handled.

“We’re noticing a huge demand for flying horseboxes and can now offer our customers flexible leasing concepts that are even better tailored to their needs,” says Martin Kraemer, Head of Marketing & PR at Jettainer, explaining the latest development.


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Congresswoman Torres Visits Inland Empire X-ray Manufacturer

ONTARIO, Calif. (August 17, 2017)

Congresswoman Norma J. Torres visited the Astrophysics, Inc. (Astrophysics) Inland Empire facility last week to learn about the X-ray manufacturer's scanners and its impact on the region's economy. Representative (Rep.) Torres is currently touring U.S.-based manufacturers throughout her 35th District and made her first tour stop at Astrophysics' own research and design center last Monday.

Astrophysics

Rep. Torres witnessed Astrophysics demonstrating one of its latest products, the HXC-320 Vehicle Scanner. The scanner is designed to inspect cars, light trucks and their passengers for hidden contraband including smuggled goods, explosives, narcotics and weapons. As vehicles drove through the machine, Rep. Torres saw how operators review each detailed image using advanced analysis tools to ensure each vehicle is safe. The HXC-320's imaging is so precise that operators can count the loaded bullets in a handgun hidden within the vehicle.

Astrophysics continues to be a global leader in critical infrastructure and X-ray screening technology. The company proudly employs over 250 employees in Southern California, supports local business and vendors and contributes to the growing Inland Empire economy.


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Pipe spooling flown to Houston on B747-400F cargo charter.

13 July 2017

Chapman Freeborn Airchartering has overseen the time-critical delivery of 60 tons of pipe spooling from Sharjah to Houston for an equipment upgrade at a gas-to-liquids processing plant.

On behalf of a freight forwarder, the air cargo charter specialist’s Dubai office coordinated the movement with the assistance of Magma Aviation, who immediately repositioned a nose-loading B747-400F aircraft to the Middle East for the operation.

Chapman Freeborn’s cargo team was able to make a detailed loadability assessment and provide packaging advice for the urgent consignment - which included six crates of pipes of varying weights and dimensions, with the largest of the pieces measuring over 13-metres in length.

Chapman Freeborn

Under the supervision of specialist loadmasters, the outsize equipment was carefully transferred from flatbed trucks and onto high loaders using an external crane brought in for the project.

Following the successful loading of the complex cargo in Sharjah, the Magma aircraft departed on schedule and flew to the US via a short stop in Liege for refuelling.

Safely delivered to Houston, the equipment was quickly cleared for onwards transit to its final destination for installation.

Vikas Chaturvedi, Chapman Freeborn’s commercial manager for India and Middle East, says the pipe spooling was a critical component for an upgrade project and it was essential that the equipment was delivered as quickly as possible.

“We’re delighted to have managed this charter project on behalf of our client. Time-critical shipments of this kind can be challenging when the load consists of multiple outsize pieces – but with the help of Magma Aviation and the other parties involved we’re pleased to have ensured a smooth operation.”


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Kerry Logistics Manages Maxim’s New Central Distribution Centre

Hong Kong, Monday, 14th August 2017

Logistics Network Limited (‘Kerry Logistics’; Stock Code 636.HK) has secured a long-term contract with Maxim’s Caterers Ltd. (‘Maxim’s’), Hong Kong’s leading food and beverage company.

Kerry Logistics will provide integrated logistics services to Maxim’s Group including cold chain solutions, supporting the caterer’s more than 780 outlets in Hong Kong and key accounts, 365 days per year. This strategic cooperation signals the collaboration of two industry leaders in Hong Kong, and exists to serve the Hong Kong community with speedy and hygienic food supply. The new strategic cooperation will see Kerry Logistics managing Maxim’s new Central Distribution Centre (‘DC’) with multi-temperature storage, accommodating Maxim’s extensive product range. Kerry Logistics will also provide a wide range of value-added services and daily replenishment to Maxim’s restaurant chains and key accounts. William Ma, Group Managing Director of Kerry Logistics, said, “This is an exciting partnership for us. As Hong Kong’s largest F&B caterer, Maxim’s has highly demanding logistics needs and some of the most complex distribution channels in the industry. Kerry Logistics is committed to servicing Maxim’s with dedicated resources, both software and hardware, as well as the Hong Kong community at large. The project will add another mega-scale domestic DC operation to our logistics business portfolio. We are looking forward to developing a long and successful partnership with Maxim’s through delivering quality performance and reliable services.”

Michael Wu, Chairman and Managing Director of Maxim’s Caterers Ltd., said, “Over the years the Kerry Logistics team has demonstrated its commitment and capabilities to deliver agile services to support our seasonal and project needs. The ten months in the preparation for our new DC have made us realise that our two companies share a similar culture of quality, dedication and innovation. We are delighted to work in close partnership with Kerry Logistics for enhanced efficiencies and expanded scale.” Supported by Kerry Logistics’ industry expertise and extensive distribution network, Maxim’s diverse range of catering services will continue to fulfil Hong Kong people’s needs.



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Singapore Government Agency Upgrades X-ray Scanners

CITY OF INDUSTRY, Calif. (August 9, 2017)

A Singapore government agency upgraded seventeen (17) X-ray scanners to Astrophysics, Inc. equipment at multiple checkpoints within the city. These systems will replace and upgrade aging machines being phased out of service and also help the agency detect prohibited materials, including cigarettes and regulated drugs.

The agency acquired sixteen (16) XIS-6545DVS and one (1) XIS-6545DVS equipped with a mobility kit. The X-ray scanners' dual-view technology provides operators with two (2) X-ray images, giving them better detection capabilities to uncover hidden and illegal contraband the government is searching for.

Astrophysics, Inc. CEO Francois Zayek commented: "I am delighted to partner with the Singapore [government] to upgrade security equipment at facilities throughout the country. Our XIS-6545 DVS is the ideal machine for their important mission to detect hidden contraband."


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INDUSTRY VETERAN, ULD CARE TEAM UP TO RELEASE BOOK TO IMPROVE ULD HANDLING

HONG KONG AUG. 8, 2017

Industry veteran Bob Rogers and the industry association ULD CARE have teamed up to release a book, ULD Explained, that provides critical information to the air cargo industry around the world to improve flight safety, reduce injuries and prevent damage of unit load devices (ULDs).

“This book is packed with critical information that anyone touching a ULD needs to have to ensure these devices are loaded, moved and handled properly,” says Rogers. “I have written ULD Explained to impart the best-practices I have developed over 35 years in the business.”

Bob Rogers

Rogers adds that far too often, ULDs are perceived as being nothing more than a piece of material handling equipment, used to provide convenience for handlers and terminals.

“Most undoubtedly, ULD do provide such convenience and indeed have opened up new possibilities, such as the transport of high end pharmaceuticals by air,” Rogers says. “But all too often, the primary flight safety function of the ULD is completely ignored and ULDs that are damaged or incorrectly built-up find their way onto the aircraft, creating damage to cargo holds, violating civil aviation regulations and potentially causing accidents.”

“We’ve seen increased attention from regulators to ensure safety and proper handling of ULDs, particularly the Federal Aviation Administration in the U.S.,” says Urs Wiesendanger, President of ULD CARE. “This book is part of a new Code of Conduct that we are establishing to ensure the best methods of ULD handling become the norm across the industry.”

Book Cover

The National Transportation Safety Board (NTSB) in the United States released a report that indicated improper loading of ULDs was a contributing factor to the crash of Fine Air Flight 101 in 1997.

ULD CARE has advanced the creation of procedures and standards to ensure that all industry players have the proper information available in a format that is accessible to them, says Wiesendanger. ULD CARE will be releasing additional information products in the future to support the industry, he adds.






ATSG Growth Continues As Midsize Freighter Leasing Expands

WILMINGTON, OH – August 7, 2017

Air Transport Services Group, Inc. (ATSG), the leading provider of medium wide-body aircraft leasing, air cargo transportation and related services, today reported consolidated financial results for the quarter ended June 30, 2017.

Compared with amounts for the second quarter of 2016 (except as noted):
• Revenues increased $77 million, or 43 percent, to $253.2 million. Excluding revenues from reimbursable airline expenses, revenues increased $60 million, or 37 percent. ATSG's airline services operations, and maintenance and logistics businesses, recorded double-digit revenue increases.
• GAAP Earnings from Continuing Operations were a loss of $53.9 million or $0.91 per share diluted and included charges totaling $67.8 million for the warrants granted last year in connection with operating and lease agreements with Amazon Fulfillment Services, Inc. The value of the warrants increased sharply during the quarter in conjunction with a 36 percent increase in the traded price of ATSG stock since March 31, 2017, resulting in a significant mark-to-market loss for the quarter. Earnings from Continuing Operations were a positive $11.5 million, or $0.12 per share diluted a year earlier.
• Adjusted Earnings from Continuing Operations, which exclude non-cash warrant-related items, were $13.9 million, up 64 percent. Adjusted Earnings Per Share from Continuing Operations were $0.21, up eight cents per share. These Adjusted Earnings and other adjusted amounts referenced below are non-GAAP financial measures, and are reconciled to comparable GAAP results in tables in this release. Adjustments include both dollar-amount and share count items.
• GAAP Pre-tax Earnings from Continuing Operations were a negative $48.4 million, versus a positive $18.8 million a year ago. Adjusted Pre-tax Earnings, which exclude warrant effects along with additional non-cash items, increased 39 percent to $22.7 million.
• Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization, as defined and adjusted in a table later in this release) increased 23 percent to $64.2 million.
• Capital expenditures in the first half of 2017 were $144.3 million, versus $125.1 million in the first half of 2016.
• Share repurchases were $11.2 million for the first half. This includes 380,637 shares ATSG repurchased in June as part of an underwritten secondary offering by an affiliate of Red Mountain Capital Partners.

Joe Hete, President and Chief Executive Officer of ATSG, said, “In addition to the outstanding financial results we are reporting today, I’m pleased to say that we are scheduled to deliver the twentieth leased Boeing 767 freighter to Amazon later this week, 17 months after we formalized our relationship in March 2016. Our total leased-aircraft portfolio has grown by eight 767s as of June 30, compared to the same date a year ago. Excluding the two 767-300s required to complete Amazon's twenty-aircraft order, our current purchase and conversion commitments will yield twelve additional 767-300s extending through the first half of next year. We currently have signed leases or are finalizing others for nine of the twelve aircraft. The remaining three aircraft are under discussion with multiple parties."

ATSG's results for the first half of 2017 included a revenue increase of 39 percent to $491.1 million, and GAAP Earnings from Continuing Operations of negative $44.1 million, or a $0.75 loss per share. First-half Adjusted Earnings From Continuing Operations were $25.1 million, up 48 percent from a year ago. On a per-share adjusted basis, ATSG earned $0.38 per share, up from $0.26 in the first half of 2016.


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