Aircargopedia Newsblast: October 2017!
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17th October 2017  

Dear Air Cargo Professional:

IATA hosted its annual CARGO EVENTS PROGRAM in Barcelona from October 3rd-5th with five intense and very specialized conferences for Air Pharma, Cargo Claims and Loss Prevention, Cargo Security and Facilitation, Lithium Batteries and a Drones Lab. These 'content rich' conferences attract the best in class of both speakers and delegates from all over the world, and this program is a highly recommended forum for any air cargo professional intent on getting the best and latest overview of any of these disciplines.Unfortunately, much as I would have liked to attend all five conferences, the subject matter for each forum was too focused for me to be hopping from one room to the other.   DJ Ghosh

So I opted for the Drones Lab with its mandate to discuss how to unlock communities where transport infrastructure does not exist, how unmanned vehicles can support first response to natural disasters, emergency delivery in rural areas, and how new technologies will transform first and last mile delivery of packages..

Commercial drones are already being deployed for specialized operations, including aircraft inspections, warehouse sorting and small parcel deliveries for the last mile, (where 80% of all costs are incurred). CORREOS, the postal company from Spain, in its first stage of commercial drone deployment for postal operations is using them to take aerial views of prospective cities with the intent to expand this further to respond to the e-commerce challenge. Maria Albala Lopez, Project Manager at CORREOS, is one of those who have been tasked to move this project forward.


These drones have already attracted the attention of international agencies and the drone lab was well represented with senior officials from Wings for Aid, the OECD and UNICEF, who talked about the role of UAV's in delivering medicines and critical humanitarian supplies to remote areas affected by man made and natural disasters. Sara de la Rosa, the New York based program lead for UNICEF's unmanned aerial systems (UAS), stressed the need to make UAS a long term and sustainable solution, while integrating pilot programs into the supply chain. Julio Gil, Technology and Innovation Manager at UPS Logistics and Distribution in the Netherlands, who spoke about the future of healthcare logistics, showcased a UPS funded program in Rwanda, Africa, where a drone based medical delivery system was helping this nation leapfrog the rest of the world, while creating a template for similar operations in other parts of the world.

The delegates at the DRONE LAB were treated to a sneak preview of things to come, by future manufacturers of cargo drones; each with their own vision of how their products could re-shape the air cargo industry. These included Anthony Pizzaro, president of Canada based Romaeris Corporation, who hopes to eventually penetrate 42% of road freight with a drone capable of carrying 250 kg of freight over 1,800 km at 160-180 km per hour. Svilen Rangelov, one of the two brothers who founded Bulgarian manufacturer Dronamics is offering a US$200,000 drone with a payload of 350 kg and a range of 2,500 km. Nils Johanning, Senior Vice President of CARGORYON whose Vertical Take off and Landing(VTOL) aircraft is still six years away from a market launch, is offering a bigger aircraft with a 40 ton payload, a 1,250 km range and a 300 km per hour cruising speed. Not to be outdone, Aleksey Matyushev, founder of US based Natilus hopes to cut global airfreight costs by 50% through the deployment of his 'slow steaming' 100 ton freighter.

While all of the four aforementioned cargo drone visionaries are moving steadily closer to their respective visions, the fifth manufacturer on the panel, Luis Carillo Losta, Founder of Singular Aircraft has an aircraft called the FLY OX 1 with a model that actually flies, and has already received his first order from Africa based airline Astral Aviation. Originally founded as a way to provide a solution for pilots who risked their lives conducting aerial fire fighting operations, the FLY OX 1 is also designed to conduct crop spraying of chemicals without exposing pilots to harmful carcinogens. Reasonably priced at Euro 0.92 million, the FLY OX 1 can also be used for surveillance, as well as transporting goods to difficult to access places with its payload of up to 1,850 kg and range up to 2,500 nautical miles.

Sanjeev Gadhia, CEO of Astral Aviation is betting that unmanned aircraft like the FLY OX 1 will help him expand Astral Aviation's footprint in Africa, by delivering both commercial and humanitarian cargoes to the remotest part of the African continent. He is already working with governments and aviation authorities across the region to build the regulatory framework that will allow his drones to operate seamlessly. Africa is still relatively unfettered by aviation regulations and could become the new frontier for the widespread use of cargo drones.

While drones can certainly usher in the 'democratization of trade' , with technology as both the enabler and an agent of disruption, reducing costs all around and making speed the ultimate differentiator, highly regulated markets in Europe and North America, with each individual country's civil aviation authority having a different set of drone regulations, will slow this globalization process. This needs to change. For cargo drones to make a major impact on the global air cargo trade, while taking out pilot costs, they must be able to seamlessly cross international borders in clearly designated lanes, while moving up in size and range. As new cargo drones gradually find their place in an increasingly specialized air cargo environment, traditional manufacturers must also adapt by re-configuring new and existing aircraft platforms, be they narrow-bodies, medium wide bodies or wide bodies to fly in a pilot-less future.

Robert Williams, a partner at US based law practice Schnader believes that change will come sooner than later. The rapid proliferation of unmanned vehicles on US roads will make it easier for the drone industry to get certified, allowing us to clearly see the vision of our unmanned future.

Freighters World Conference

FREIGHTERS WORLD CONFERENCE: The business dynamics of operating freighter aircraft is changing rapidly. Addressing delegates at the Annual Freighter World Conference in Chicago last month, William Flynn, President and Chief Executive of Atlas Air Worldwide informed the group that express traffic (particularly international shipments) and the new e-commerce explosion are the fastest growing segments of the air cargo market today. In fact Atlas now has 70% of its aircraft serving the express or e-commerce markets. Airlines that operate freighters, including the express carriers, generate 90% of the industry's $84 billion in annual revenues. Freighters continue to carry over 50% of the world's air cargo, while all of this is happening in an environment of a reduced number of freighters.The good news is that with the growing share of express products in the mix, freighter loads are finally getting more balanced.

In his 'state of the nation' presentation, Marco Bloemen, Managing Director, Seabury Consulting stated that as fuel prices have dropped, there has been a 2% increase in yield growth. He predicts that the double digit growth of the recent past will continue in 2017, and demand growth will outstrip the growth of capacity. Oliver von Tronchin, head of freighter marketing for Airbus predicted that express operators would continue to make inroads into the traditional freight forwarder/airline model.

Meanwhile, a new breed of forwarder is emerging in the form of a company named Flexport. With a ranking of Number 19 on Wall Street Journal's Top Tech companies to watch, this 'full service forwarder' with 475 employees and 7 offices around the globe has raised US$200 million as it braces itself to disrupt a very traditional industry with cutting edge data analytics, end to end visibility through a state of the art dashboard, and a dedicated and pro-active customer services team. Neel Jones Shah, Senior Vice President and Global Head of Airfreight for Flexport also wants companies like his to become more reliable customers for the airlines, aiming for a 'book to execute' ratio of 90% against an industry average of 75%. All of this, while providing end to end visibility in an industry where so many hand-offs are all in a day's work.

The airlines panel on Day 2 of the conference discussed how freighter operators are becoming more relevant as large forwarders and express operators begin to contract for a larger portion of their freighter capacity over longer terms. Control is now the new buzz word in buying freighter capacity. Amazon went to a more expensive solution, which is also more efficient, and which they can control. Shawn McWhorter, President of Nippon Cargo Airlines(NCA), clearly demonstrated that even for the same cargo you could have two products, a dedicated freighter product, and also a passenger product. Welcome to the new world of freighter product marketing.

COOL CHAIN CONFERENCE, Budapest: Opening the discussions on pharma products on the first day of the conference, Alan Dorling, Global Head of Pharmaceuticals and Life Sciences at IAG Cargo, stated that the biggest drivers of the growth in pharma products continue to be an aging population, government immunization programs, lifestyle illnesses, advances in cancer therapies, personalized medicines and clinical trials across all continents. The increasing complexity of this business requires that every part of the chain be GDP certified with dedicated and trained personnel on board.

At the present time 38 carriers including IAG Cargo offer a cool chain product, while 10 do it really well. Temperature controlled facilities are of paramount importance, while tarmac exposure is critical. If track and trace technologies are carried on board, it will give the shipper absolute visibility regarding their shipments. The trend in pharma is towards greater segmentation and newer products like biologics and immunotherapy.

START SMALL AND THINK BIG is the motto at Brussels based technology startup SKYFRESH , where they hope to create a more transparent process in handling pharma by using a dashboard for BRUCARGO. Three handlers in Brussels are already participating in this venture with the blessings of Brussels airport-the neutral moderator who insures that all GHA's supply the data and allow sharing of the data. Fen Laseel, Product and Business Development Officer at SKYFRESH believes that his pharma dashboard is a great tool in pushing different stakeholders towards improving their performance, provided you are completely clear about data ownership.

The delegates also got a chance to view slides of Sharjah Airport's new certified RA3 warehouse with ISAGO accreditation. Sharjah is the first airport in the Middle East certified by CEIV, is a member of PHARMA.AERO and has added to its pharma capabilities with the acquisition of 5 cool dollies and Berlinger temperature monitors. All of this, with a tariff which is 30% lower than neighboring airports.

Mark Mohr, Director Customer Support and Partner Management at C-SAFE warned that manufacturers are becoming more astute about costs in the supply chain, while shippers have become more aggressive about attempting to procure data to leverage cost reductions. Pricing flexibility is now the key.

Air Cargo Handling Conference

AIR CARGO HANDLING CONFERENCE,Budapest: The day after the Cool Chain Conference ended, I joined the Air Cargo Handling Conference in the same venue, the storied Corinthia Hotel, Budapest where we heard the opening remarks by Dr. Petra Pena, Deputy State Secretary of Foreign Economic Affairs of Hungary's Ministry of Foreign Affairs and Trade. According to Dr. Pena, Hungary's economic reforms are working very well, increasing GDP growth to 4.3% in the first quarter of 2017, limiting the budget deficit to 3% and growing exports by 3% to US$103 billion. Hungary has the third lowest unemployment in Europe, flexible work regulations, and vocational training based on the German model. Personal income is taxed at a flat rate of 15% and corporate tax rates are at 9%.

Speaking on behalf of ULD CARE, Bob Rogers pointed out that the number of ULD's in new aircraft had doubled in the last 30 years, with e-commerce driving the demand for new containers. Temperature controlled ULD's require very special handling and are extremely complex. However, they are also big earners for airlines.

In the session on Performance Standards for Cargo Handlers, the question of a new IATA standard SLA was discussed with a dashboard of business relationships, measurable KPI's and messaging performance. The GHA community were once again challenged to enhance simplicity and sustainability through a more standardized platform of guidelines, which hopefully would lead to a reduction in the number of audits.

Cargo crime is big business. I was surprised to learn from the presentation of Jason Breakwell of the Transport Asset Protection Association(TAPA) that 90% of cargo theft is organized and abetted through internal sources. The key to reducing cargo theft is to make supply chain risk management a priority, centralizing responsibility for risk management and investing aggressively. Businesses were advised to investigate every single incident, since criminals may be testing the supply chain for weaknesses.

Asha Menon of the World Customs Organization (WCO) summed up the WCO's air cargo mission very succinctly in two areas:
1) PLACI: Advance Cargo Information prior to goods being loaded on the aircraft. The sooner you give customs the information, the better they can manage security.The EU, USA and Japan are already pushing the borders out by moving forward with PLACI.
2) Alignment of security programs, avoiding duplication and providing facilitation.

Hope to see you in Miami for TIACA's Annual General Meeting and Conference this month.

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


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Kale Logistics Solutions appoints Jack Bishmohun as Head of Business Development for Africa Region

Jack has an extensive IT background in areas of consulting, product implementation and development. He will be based out of Mauritius and will position Kale Logistics in the emerging African Logistics industry.

Mumbai, Oct 9, 2017

Kale Logistics Solutions, a trusted IT Logistics partner for Fortune 500 companies,announced the joining of Jack Bismohun as the Head of Business Development for Africa region. In his new role, Jack will drive growth of the company and develop market penetration across Africa.

Speaking on the occasion Vineet Malhotra, Director, Kale Logistics Solutions, says, “Jack is a great addition to the team. He brings with him experience in tapping and developing an important geography, Africa. At Kale Logistics, we are customer focused and are growing fast. With Jack’s hiring, we would like to further accelerate this growth.” He further added, “The African Logistics market is gearing up for the future – building its infrastructure, enabling supply chains and distribution networks, providing mobility. Our IT solutions are gaining popularity in this region and it is the right time for us to invest here.”

Jack is a seasoned professional with great knowledge about the African Logistics market. He brings with him more than two decades of experience in business development. He was formerly also associated with Mauritius Network Services and Satyam. He was actively involved in delivering electronic solutions, primarily to Governments, Customs and private Logistics companies and has worked in several African and Francophone markets.

Speaking about his association with Kale Logistics Solutions, Jack Bismohun, says, “I decided to join Kale Logistics after I was introduced to its wide spectrum of solutions which are at the forefront of emerging trends in Logistics, airports and transportation industries. Kale Logistics’ solutions and experience in the Logistics domain will bring value across Africa and I am tremendously honored to be a part of a fast growing IT solutions provider. I am happy to bring my knowledge and experience in the African markets where it is already positioned by developing further its presence and success. I am impressed with its fast growth and demands for its solution globally and am looking forward to be part of this venture by positioning the company across Africa.”

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Qatar Airways Cargo Expands Its Fleet to 22 Freighters

08 October 2017 DOHA, Qatar

Qatar Airways Cargo has taken delivery of its thirteenth Boeing 777 freighter at its home base at Doha’s Hamad International Airport (HIA). Continuing its trajectory of rapid growth and expansion, the world’s third largest international cargo carrier’s fleet now includes 22 freighters, comprising eight Airbus A330F, 13 Boeing 777F and one Boeing 747-8F.

Qatar Airways Chief Officer Cargo, Mr. Ulrich Ogiermann, said: “We are excited to take delivery of the newest freighter just days after our first Boeing 747-8F nose loader freighter joined the fleet, and at a time when we are increasing our capacity and frequencies as part of our network expansion strategy. The new freighters will be deployed on long haul routes in scheduled services and will further boost QR Charter services, allowing us to provide bespoke air charter services for various industries, including the industrial and oil and gas sectors.”

Qatar Airways Cargo received delivery of its first Boeing 777 freighter in 2010, and today the cargo carrier operates a fleet of 13 Boeing 777 freighters on long-haul routes to the Americas, Europe, Asia Pacific and select destinations in Africa. With a payload capacity of more than 100 metric tonnes, the Boeing 777F is capable of flying 9,070 km. The aircraft range capability translates into significant savings for cargo operators as it requires fewer stops and associated landing fees, less congestion at transfer hubs, lower cargo handling costs and shorter cargo delivery times. The capacity of the Boeing freighters and the plane’s economics make it a highly attractive addition to the fleet.

Qatar Airways

The cargo carrier provides its customers a young and modern fleet of belly-hold aircraft and freighters across a truly global network. Qatar Airways Cargo recently announced the commencement of Boeing 777 freighter services to Pittsburgh, its seventh freighter destination in 2017 and thirteenth in the Americas, starting on 11 October.

Qatar Airways Cargo has made substantial investment in its operations at its Doha hub to ensure all cargo deliveries are processed efficiently and seamlessly. Special facilities and well-trained personnel ensure expert handling over a wide variety of product categories, which include express products, livestock, valuables, automobiles, perishables, pharmaceuticals, oversized cargo and general cargo that requires air freight carriage.

The cargo carrier offers QR Charter, utilising its most modern fleet of Boeing 747-8, Boeing 777 and Airbus A330 freighters. Its portfolio of distinctive products currently includes QR Pharma, QR Fresh, QR Live and QR Express offering efficiency and compliance in the handling of temperature-sensitive pharmaceutical and perishable cargo, transportation of live animals as well as time-critical shipments.

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ATSG Elects Ray Johns to Board of Directors

WILMINGTON, OHIO -- October 5, 2017

Air Transport Services Group, Inc. (NASDAQ:ATSG) announced the election of Raymond E. Johns, Jr., to its Board of Directors, effective today.

Johns, 62, led the U.S. Air Force Air Mobility Command at Scott Air Force Base in Illinois until his retirement with the rank of General in January 2013, capping a 36-year military career. He is currently Executive Vice President of FlightSafety International Inc. headquartered in New York, where he leads the design, manufacture, and support of flight simulation equipment and flight training services to government and military organizations worldwide.

Randy Rademacher, Chairman of ATSG, said Johns brings to ATSG’s Board a deep understanding of strategic planning and analysis, as well as expertise in setting and achieving the highest standards of performance for complex air networks under challenging conditions.

“ATSG is fortunate to be able to add someone with Ray’s remarkable experience and service commitment to our Board. I’m confident he will contribute both strategic vision and valuable operating perspectives to the oversight work we do on behalf of ATSG’s shareholders,” Rademacher said.

Johns said he knew of ATSG through its contributions to the Air Mobility Command as a longtime provider of combi (combined freighter/passenger aircraft) services and other air cargo support to military locations around the world.

“Companies like ATSG play a vital part in the array of resources that keep both military and commercial supply networks operating smoothly around the world,” he said. “I look forward to working with ATSG’s Board members as we determine how best to achieve its mission for growth and profitability in the years to come.”

Johns is a 1977 U.S. Air Force Academy graduate and former test pilot and program manager for the VC-25 Air Force One replacement program. He has held staff positions at both the European and Pacific command headquarters. In Washington D.C. he served as a White House Fellow and was Deputy Chief of Staff for Strategic Plans and Programs, where he focused on long-range planning. He has commanded a test squadron, operations group and airlift wing, and was Director of Mobility Forces for operations in Bosnia and responsible for strategic airlift operations in Iraq and Afghanistan.

Johns also holds an M.S. in administration from Central Michigan University, and graduated from the John F. Kennedy School of Government’s program for senior executives at Harvard University. He serves on the National Executive Board of the Boy Scouts of America.

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Alaska Air Cargo Launches Real-time Booking Engine, Powered by SmartKargo

The Launch Marks Digital Transformation of Cargo Processes For the Airline, including eAWB and ePouch Documentation
Cambridge, MA, Oct. 2, 2017 /PRNewswire/

Alaska Air Cargo today launched new booking and tracking capability powered by SmartKargo, the world’s most advanced cargo management platform for airlines, ground handlers, sales agents, and regulators. Alaska’s adoption of the SmartKargo Portal functionality now leverages all IATA standard C-IMP messages to communicate with the Airline’s existing systems landscape, while also providing the technology to adopt the paperless transformation of key business processes, including eAWB and the capability to digitally collect, store and transmit associated documentation via e-pouch.

In addition, the advanced SmartKargo Link capability within the solution facilitates interline opportunities by streamlining processes and communications for Alaska Air Cargo and its partner airlines. The SmartKargo booking engine also features direct access to Bookings by customers via a passenger-style airline booking interface, templates for repetitive bookings, real-time pricing, realtime capacity allocation, real-time confirmations and real-time notifications.

The booking engine functionality conforms with all regulatory requirements and is fully Integrated with all applicable checks required for Known Shipper Requirement and automated integration with TSA data. “Last week, we initiated a new era at Alaska Air Cargo with the beginning of our new 737-700 freighter capability," said Jason Berry, Alaska Air Cargo managing director. “The new booking engine will now power our capability for real-time communications with our customers— providing them with the industry’s most robust real-time Track and Trace user interface. In addition, the simple booking interface is pre-loaded with IATA commodity codes and other regulatory information, to streamline the process.

These are just a few of the new capabilities that will help us fully extend our culture of customer excellence to our cargo customers.” “The advanced booking engine launched by Alaska Air Cargo was built to exemplify “ease-of-use” via a one-screen interface that enables customer self-service, streamlined ratings and airlineprovided visibility at every shipment milestone,” said Milind Tavshikar, CEO of SmartKargo. “Hands-on access to real-time data, built-in business intelligence and the technology to facilitate the digital transformation of business processes work together to support operational efficiencies, better customer experience and increased revenues, he said.”

SmartKargo is a 100% Cloud-based, browser-accessed solution that has been developed by Airline and Cargo industry experts, based on IATA standards, and is configurable to address unique business scenarios for global air cargo operators. The advanced solution is built upon the Microsoft Azure Cloud with the world’s most robust investment in global infrastructure. The SmartKargo Microsoft partnership provides a solution which addresses the intricate needs of global airlines and never becomes obsolete.

Kale Logistics Solutions becomes the first Indian company to join IPCSA

Mumbai, Oct 3, 2017:

The International Port Community Systems Association (IPCSA) has expanded its membership by welcoming Kale Logistics Solutions, the first Indian company, to join IPCSA.

Kale Logistics Solutions is a leading Global IT solutions provider focused on providing cutting-edge technology solutions to the Logistics industry. Its broad solutions portfolio ranges from 'Internal Business Automation Systems'(ERP systems) to 'Community Solutions' that help various players in the logistics value chain to communicate and transact with each other electronically.

Kale Logistics' Container Digital Exchange system at Tuticorin port has been presented to the Honourable Prime Minister of India, as one of the top industry innovation in trade facilitation. A case study on Kale Logistics' IT solutions has also been published in the “Supply Chain Management” book co-authored by Kellogg’s Business School professors and the solutions have been considered in Top 10 innovations by KPMG in their Adding Wings publication. India’s first multi-modal Cargo Community System (CCS) UPLIFT and world’s first comprehensive Airport Cargo Community system, GMAX are Kale Logistics’ creations.

Speaking about Kale Logistics’ community and ERP solutions, Kale Logistics Solutions’ CEO, Mr. Amar More said, “Our community systems are very different from the traditional CCS, as they play a much wider role than functioning solely as a forwarder for an airline or forwarder to Customs EDI. They allow SMEs to run their entire business on the CCS application and have several fulfilment mechanisms, including web portals, system-to-system integration and bureau services. We provide a completely neutral platform, so there is no conflict of interest. Our Community Systems are available as SaaS too. Our solutions are available across multiple platforms like PC, mobile phones etc. The distinct feature of our solutions is that we give users tools to prevent service failures rather than report service failures which many other systems do.”

Kale Logistics already have more than 2,000 clients across the globe, offices in India, UAE and Africa, and have plans to start operations in Europe. “We are experiencing a wide demand for our solutions in America, Europe, the Middle East, Africa and the Far East and are already working with several industry associations and airports. By joining IPCSA, we will be able to share and enrich our industry experience, learnings and adoption strategies by interacting with global industry peers. There is a great potential within IPCSA for collaborating and combining each other’s solutions to enable fast turnaround times and a digital infrastructure for trade facilitation. We look forward to building digital corridors between the other community system operators and connecting the global logistics industry more closely”, Mr. More, added.

Richard Morton, secretary general of IPCSA, said, “We are delighted to welcome Kale Logistics Solutions as our newest member. IPCSA continues to expand its influence geographically and is representing its members at the highest levels, including through our consultative status at the International Maritime Organization and Special Consultative Status at UN ECOSOC.”

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