Aircargopedia Newsblast: January 2017!
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16th JANUARY 2017  

Dear Air Cargo Professional:

To all of you who were ready to write off 2016 as another disastrous year for air freight, think again. IATA’s just released Air Freight Market Analysis (featured in this newsletter) reveals that the 2016 peak season was quite good, and that 2017 is starting off very well.

The monthly analytical report from IATA underlines the strong 2016 peak season highlighting the fact that global air freight ton kilometers grew a healthy 6.8%. Though lower than October’s 8.4% growth rate, it was still two and a half times the average annual growth rate seen over the past decade (2.6%).
  DJ Ghosh
The report reveals that European and Asia Pacific carriers were the top performers with more than half the increase in the industry wide FTK’s, with smaller but positive contributions coming from the Middle East, North America and Africa. Latin American carrier volumes continued to slip for the 21st time in 23 months.

Another welcome development is the increase in the seasonally adjusted industry wide load factor, attributed to rising demand and a slower increase in capacity. Whether this will help to reverse the steep decline in rates and margins is a question that many in the industry are pondering.

INNOVATE & DIFFERENTIATE: Which brings me to the point of why the air freight industry needs to continuously innovate and differentiate its product offerings if it wants to avoid commoditization and being at the mercy of massive additions of capacity to the market. Unlike the passenger business, where most buyers today surf the internet for the lowest price on a standardized product, air cargo is a business with a variety of different products, each requiring special packaging, transportation, storage and handling. Entrepreneurial air cargo vendors can create a variety of specialized and bespoke offerings, each different from the other, that can command higher revenue premiums. Many airlines and forwarders have already begun the process of creating branded air cargo products in specialized air cargo verticals and trade lanes. We applaud these special product initiatives and hope to become their partners in globalizing them.

WWW.AIRCARGOPEDIA.COM The 24/7 air cargo encyclopedia at is intended to be a highly-specialized e-platform driving this change, showcasing the product and service offerings of ‘game changing’ vendors from all over the world. At the same time, the site is intended to build highly researched pages on each subject connected to the dedicated science of air cargo operations.

ATTENDANCE AT SPECIALIZED CONFERENCES: We at AIRCARGOPEDIA will continue to travel the world to promote, attend and participate in, air cargo conferences, workshops and exhibitions which promote this specialization.

WELCOME AIR CARGO ‘THOUGHT LEADERS’: We welcome contributions from air cargo ‘thought leaders’ from all parts of the industry to contribute to .

Air Cargo Africa 2017 Banner

AIR CARGO AFRICA 2017, JOHANNESBURG, SOUTH AFRICA: We will attend STAT TIMES’s bi-annual event in Johannesburg from 21st-23rd February, 2017. We strongly recommend that you attend and be a part of this magnificent event hosted by South African Airways. Mr. R.K. Patra and his team at STAT TIMES are without a doubt one of the world’s premier organizers of air cargo conferences and exhibitions with many outstanding events in India and Africa to their credit. Africa is the last great frontier for air cargo, and we know that this event will showcase the true potential of this great continent.

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We hope to see you there. Have a great year in 2017!

Best wishes

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



Europe’s third largest air cargo hub sees 2.5% year-on-year growth as it commits to new quality initiatives supporting the pharmaceutical, e-commerce, and perishables markets

Amsterdam, The Netherlands, Friday, 13th January 2017:

Amsterdam Airport Schiphol ended 2016 with a record total flown cargo throughput of 1.66 million tonnes, up 2.5% on 2015.

Europe’s third largest air cargo hub had a strong end to the year, with December figures up 10.4% on the same month in 2015 at 149,000 tonnes. Cargo throughput until November was up 1.8% year-on-year, with figures for January to November of 1.51 million tonnes.

“We have launched a number of initiatives to enhance the experience of our pharmaceutical, e-commerce, and perishables customers, and our continued commitment to quality is having positive results,” said Cargo Director Jonas van Stekelenburg.

“We had a strong start to 2016 due to several new carriers making use of Schiphol, and expansion by existing players, and there was an increase in traffic levels in the second half of the year resulting in a total tonnage that surpassed our expectations – an all-time record of 1.66 million tonnes of cargo.”

Jonas van Stekelenburg
Jonas van Stekelenburg,
Cargo Director, Amsterdam Airport Schiphol

Asia remains Schiphol’s largest market, with Shanghai, China, the busiest destination, and new direct flights launched to Xi’an and Ningbo, both in China.

“The upswing in e-commerce shipments, both inbound and outbound, were a large contributor to the cargo volumes for this market,” said van Stekelenburg.

“As a large number of flights now transit Europe en route to China, we can attribute a proportion of the growth in our European figures to the developing Asian market.”

Fewer direct flights to Asia meant final figures for the region were down 5% inbound and 7% outbound to 290,313 tonnes and 290,560 tonnes respectively. Flights to Asia transiting European destinations including Baku, Azerbaijan, and Moscow, Russia, increased, however, resulting in a strong overall result for Asia cargo through the hub.

A proportion of Europe’s growth of 74% to 104,061 tonnes outbound, and 42% to 105,736 tonnes inbound was therefore down to cargo transiting to and from Asia.

Africa inbound volume grew 2% to 117,556 tonnes because of increased freighter capacity serving the perishables market. Outbound volumes to Africa were 11% down at 54,684 tonnes.

Middle East tonnage was up 5% to 94,607 tonnes, with outbound tonnage remaining at 120,111 tonnes.

Latin America inbound cargo was up 11% at 101,706 tonnes because of a boost in flower imports from Quito, Ecuador. Outbound cargo saw a downtick of 12% at 75,125 tonnes, reflecting decreased capacity on routes to Miami, USA, and South America.

Exports from North America were down 1% to 157,621 tonnes year-on-year because of decrease in belly volume, whilst North America import volume was up 2% at 150,172 tonnes because of an increase in flights from the USA into Europe.

Amsterdam Airport Schiphol
Cargo transiting Amsterdam Airport Schiphol -
a record 1.66 million tonnes of cargo was flown through the European hub in 2016

“The outlook for 2017 - as we see even more air traffic growth - is positive; we are very encouraged by last year’s results,” said van Stekelenburg.

“Close collaboration with our cargo community remains a strong focus for 2017. Together with the Community we will continue to pursue ambitions such as better digital information exchange and further quality improvements in the supply chain, particularly for pharma, e-commerce and perishables."

Schiphol has launched several initiatives aimed at supporting the growth of its e-commerce, pharmaceutical, and perishables customers.

The Pharma Gateway Amsterdam initiative, launched in 2016, continues to develop, with three more members certified with the International Air Transport Association (IATA) Center of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma).

A new e-commerce same-day delivery service, called 12send, went operational in December.

The Holland Flower Alliance, a collaboration between RoyalFlora Holland, KLM Cargo, and Schiphol Cargo, further solidifies Schiphol’s position as Europe’s preferred flower hub.

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Shanghai, China, Thursday 12th January 2017

WCA Ltd, the world’s largest logistics network, and, a leading global wholesale trading platform and the B2B business arm of Alibaba Group, today announced they have concluded a co-operation agreement that will see approved WCA member companies integrated into the logistics platform for cross-border eCommerce shipments.

WCA will provide its professional support in vetting and approving international logistics providers for high quality and efficient logistics services for the customers of Approved providers will have full access to compete for logistics orders generated on the platform.

Dan March
Dan March,
Chief Executive Officer, WCA

WCA and have agreed parameters and standards of service, as well as offering all participants a protection scheme that includes compensation for qualifying transactions.

“The fact that has recognised the quality, global strength and professionalism of WCA and its members will open up vast new opportunities for business growth for independent freight forwarders”, said Dan March, WCA’s Chief Executive Officer.

“Many of our member companies are already heavily involved in many facets of cross-border eCommerce logistics. The strict qualification process for our newly-formed WCA eCommerce network will provide reassurance that the services provided by our members can facilitate merchants on to accelerate their global trading.”

The collaboration will commence in January 2017, facilitating shipments generated by’s members to be made to the major export markets of the USA, India and the UK.

Steve Su, Director, Alibaba Logistics said: "We are thrilled to partner with WCA, a global network with well-connected global resources, to provide fast and convenient shipping options for our members.

''We are committed to offering premium services to global SMEs on our platform who are looking to scale up their business presence through cross-border trading.

David Yokeum and Steve Su
David Yokeum, Chairman, WCA (left) signs the cooperation agreement with Steve Su,
Director, Alibaba Logistics (right) in Hangzhou, China

''We are confident partnering with a leading global logistics alliance such as WCA will help us achieve that goal.”

“The world is rapidly changing,” added WCA Chairman, David Yokeum. “And we are working hard to ensure that our members are equipped and able to take advantage of the huge projected growth in global eCommerce shipments.

'' has shown both determination and innovation in forming this partnership and we fully expect the business to flourish.

''We are putting both independent forwarders and traders at the vanguard of change in this exciting and dynamic market.”

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Air Caraïbes Atlantique signs ULD management agreement with CHEP

12 January 2017

Air Caraïbes Atlantique, the transatlantic carrier of the French Caribbean, has chosen CHEP Aerospace Solutions, the leading global provider of outsourced Unit Load Device (ULD) solutions, to supply and manage containers and pallets for its growing aircraft fleet.

Air Caraïbes currently operates five Airbus A330 aircraft and will shortly be adding three A350s to fly to transatlantic destinations for Air Caraïbes Atlantique and its recently launched French Blue brand. The new four-year agreement with CHEP includes the supply of containers and pallets for these new aircraft and the transition of the existing container fleet to CHEP's lightweight containers within the first year.

Air Caraïbes Atlantique CEO, Marc Rochet, said: "With the introduction of our new fleet and network growth, we were looking for opportunities to make our operations more efficient whilst reducing costs, enhancing performance and supporting our commitment to sustainability. We were already considering the purchase of lightweight containers to better our fuel efficiency, and upon evaluating the different options available in the market, we concluded that CHEP's ULD management solutions provided the best mix in terms of assets, global expertise and the lowest overall costs base with the maximum value. The company has been highly recommended by our codeshare partner and long-time CHEP customer, and we look forward to our partnership."

CHEP Aerospace Solutions President, Dr. Ludwig Bertsch, said: "Air Caraïbes Atlantique will be the first French airline to operate the new-generation Airbus A350. The group's ULD needs will double during our partnership and we look forward to supporting their growth. The airlines' destinations also present a great opportunity for increasing the synergies in our network as the overlap of airports enables the most economic and efficient use of ULDs to the benefit of our customers. We welcome our 40th ULD management customer to CHEP's ever-growing portfolio and are pleased with our newly established partnership."

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Air Freight Market Analysis - November 2016

Released 10th January 2017

Key points from our report on air freight markets in November:

• Global air freight tonne kilometres grew by a robust 6.8% year-on-year in November 2016.
• Latest data underline a strong 2016 peak season for air cargo, alongside a pick-up in silicon material shipments.
• The wider world trade backdrop remains weak, but business surveys point to near-term momentum for air cargo.
• The seasonally adjusted freight load factor has risen strongly of late, with Africa the notable exception.

Read the Air Freight Market Analysis >

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Liege Airport goes from strength to strength!

Liege Airport, 9th January 2017

2016 has reinforced Liege Airport’s leading role in freight transport in Europe. With more than 660,000 tonnes transiting its facilities, our airport is Belgium’s largest cargo airport and the 8th largest in Europe. In turn, the consequences of the Brussels Airport attack resulted in a 27% increase in passenger traffic. 2016

2016 Report

Liege Airport 2016 Report

Liege Airport strengthened its position as Belgium’s leading cargo airport with 660,604 tonnes of freight compared with 649,829 tonnes in 2015 (+1.7%).

“There has been sustained business growth for all our companies with significant increases for CAL, El Al and Qatar Airways”, explains Luc Partoune, Managing Director of Liege Airport. “In a transition phase following the buyout by Fedex, TNT continues to perform well and remains our most important client.”

In turn, passenger numbers showed a clear increase following the attack carried out on Brussels Airport. More than 382,000 passengers transited the Liege Airport terminal as a result (an increase of 27%). “This has been an exceptional year due to the fact that in three weeks we handled 150,000 passengers who were unfamiliar with our airport and 1,600 aircraft movements of companies also new to our facilities.”

More cargo, more passengers but fewer aircraft movements: down from 41,045 movements in 2015 to 37,987 this year.

New cargo hall in the north zone

In terms of real estate, Liege Airport is successfully pursuing its diversification strategy via its subsidiary Liege Airport Business Park. Occupancy of office space is running at more than 93%.

A new 6,000 sq m cargo hall will be built in 2017 with a 4 million euro investment. This warehouse demonstrates that demand for freight is strong.

Year on year, Liege Airport is consolidating its role as a major economic player serving an entire region.

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2016 – A year of steady growth for dnata

Dubai: 10 January, 2017

In 2016, dnata’s UAE operations continued to grow, and marked several milestones during the course of the year.

Despite challenges in the aviation industry and increased economic pressures around the globe, dnata had remained resilient and delivered the high quality service its customers have come to expect.

“It’s been a challenging year but our team has demonstrated unwavering commitment to delivering the highest standards to our customers,” said Steve Allen, DSVP dnata Airport Operations. “We have worked hard to stay agile, efficient and innovative, while never compromising our safety and operational excellence. 2017 will require us to be even more tactile and responsive to the needs of the market, and stay on top of our game to ensure a robust year ahead.”

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dnata operations at the Concourse

2016 saw unprecedented growth in aircraft handling and passenger movement. dnata ensured the tight schedule ran smoothly at both hubs – DXB and DWC, handling more than 91.3 million passengers, 97.8 million bags and 431,978 aircraft movements between the two airports. This represents more than a 16 per cent increase in the number of passengers using the airport, and 4 per cent increase in the number of flights compared to 2015. The most travelled sector from Dubai was Doha with over 2.99 million passengers making the journey from the hub, and 3.2 million bags meeting travellers at the destination.

On its busiest day of 2016, December 23, dnata was supported by 18,529 staff who handled 281,388 passengers and 329, 341 bags, and one aircraft movement every 73 seconds. dnata closed the year with 419,133 tonnes of cargo at DXB which is a monthly average of 46,570 tons and an eight percent increase from the previous year.

Al Maktoum International Airport at Dubai World Central (DWC) also saw a spike in passenger numbers with Fly Dubai’s growing operations at the airport in 2016. The airport has also developed into a regional cargo hub with a capacity to grow to 16 million tonnes per year. dnata now handles more than 117.000 tonnes of cargo at DWC and this number will continue to grow.

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In 2016, dnata handled 431,978 aircraft movements at DXB and DWC

dnata’s Special Handling team at DXB of 980 employees have assisted an average of 4, 000 special needs passengers every day. Over the year, dnata invested millions into new ground support equipment (GSE) to ensure flights landing at the two airports are serviced safely and efficiently.

Currently dnata deploys 10,000 pieces of GSE and vehicles of which 2, 000 are motorised. As a socially responsible organisation, dnata has introduced environment friendly electric tow tractors, conveyor belts and pushback tractors, GSE with engines meeting Euro III emission standards and testing hybrid and CNG powered vehicles; we have a vision to convert motorised equipment wherever feasible from diesel powered to electric, hybrid or CNG powered.

dnata has worked closely with Dubai Airports and other stakeholders on the opening of Concourse D. The new concourse has increased the airport’s capacity to an additional 16 million passengers. dnata also operates a new marhaba lounge at Concourse D.

In addition to Dubai, dnata has ground handling operations in 74 other airports around the world, serving more than 250 airlines, and is the world’s largest ground handler of the Airbus A380 aircraft.

ATSG Subsidiary Airborne Maintenance and Engineering Services to Acquire PEMCO World Air Services

WILMINGTON, OH – January 3, 2017

Air Transport Services Group, Inc. (NASDAQ:ATSG) today said its subsidiary, Airborne Maintenance and Engineering Services, Inc. (AMES), has acquired PEMCO World Air Services, Inc. (PEMCO), a privately held provider of outsourced heavy maintenance, repair and overhaul (MRO) aircraft services and passenger-to-freighter aircraft conversions based in Tampa, FL. The company did not assume any PEMCO debt in connection with the acquisition.

This acquisition will allow for a number of strategic benefits through combining operational strengths, expanded capabilities and cost savings related to shared services between the companies. The services of the combined AMES/PEMCO businesses will be marketed worldwide to customers as part of a comprehensive set of ATSG solutions, as well as to the ATSG affiliates.

Services will be offered from multiple locations, including Wilmington and Tampa for heavy maintenance and modifications, and Tampa, Central America and Asia for passenger-to-freighter conversions. Additional service offerings of aircraft-on-ground field teams, line and turnaround maintenance, component repair and overhaul, engineering repair and design, and extensive manufacturing and kitting capabilities, will be extended from various locations.

ATSG President and CEO Joe Hete said, “Based on PEMCO’s existing domestic and international scale, this acquisition will expand access to maintenance service for customers of ATSG’s expanding fleet of Boeing 767 cargo aircraft. It is consistent with our goal to diversify ATSG’s revenue and earnings, for an investment in the same price range as our planned and completed stakes in cargo airlines in China and Europe. The combination of PEMCO’s conversion and MRO sales of both Airbus and Boeing products with AMES’ existing offerings will create a sustained, growth-oriented aircraft maintenance product and services portfolio.”

Hete added that based on ATSG’s current estimates and outlook, the PEMCO acquisition is expected to be accretive to ATSG’s earnings starting in 2017.

Advisers to PEMCO included Canaccord Genuity Inc. as financial adviser and Morgan, Lewis & Bockius LLP as legal adviser. Advisers to ATSG included Vorys, Sater, Seymour & Pease LLP as legal adviser.

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