Aircargopedia Newsblast: September 2017!
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14th September 2017  
 


Dear Air Cargo Professional:

I attended the second U.S. Air Cargo Industry Affairs Summit on a grey and rainy September day in Washington, D.C., this month to find out how the U.S. government views the air cargo industry. The meeting, organized by CNS, is becoming an annual gathering of government officials connected with the business of cargo transportation, and is also attended by security and air cargo officials from all over North America.

Discussions about security dominated the first half of the one day event, as Kevin McAleenan, Acting Commissioner of US Customs and Border Protection emphasized how the attempt by ISIS to bring down an aircraft in Australia by placing an explosive device in a passenger baggage this August, was another wake up call for the industry.
  DJ Ghosh

He also highlighted the other major concern for his administration; the increasing use of air cargo to transport opioids all over the country. Opioids are 50 times more potent than heroin, are extremely profitable for those who distribute it, and have caused over 60,000 deaths in the recent past. The growth in e-commerce shipments has only helped to exacerbate this problem. Partnerships, and the use of data and technology were the key strategies in building a more robust air cargo security framework.

The need for new infrastructure investment to keep air cargo moving was also discussed in a panel moderated by Brandon Fried of the Air Cargo Forwarders Association. The average US airport is 40 years old; over 900 million passengers pass through U.S. airports that were designed for half the number. Mike Webber, an air cargo consultant, felt that it was much easier to justify investments for passengers than it was for air cargo. Since 2000, all major international gateways are down double digits for air cargo. Outside the major US international gateways, FedEx and UPS account for 90% of air cargo for all non-top 25 airports in the USA. Huntsville Airport in Alabama is one of the few examples of non- major airports in the US that have been able to build steady general cargo international traffic around the operations of a major forwarder like PANALPINA. It could be another 30 years before another non- major airport succeeds in replicating Huntsville's success story. Modernizing airfields, including introducing NextGen and Just In Time has a lot to do with improving airport efficiencies.

Despite all their problems Mike Webber feels that carriers will not leave major gateways. Secondary gateways will supplement, but not replace major gateways. So what can secondary airports in the U.S. do to re-invent themselves as cargo hubs? Could they become distribution centers for the new cargo world? With the advent and explosive growth of e-commerce and its promise to give small to medium sized businesses the ability to access global markets, perhaps this could create new opportunities for secondary airports. However, these micro shipments with their large volumes, while good for business, can also create new logistic and security challenges.

Michael Mullen, Executive Director of the Express Association of America, (EAA) which represents integrators like FedEx, UPS and DHL, spoke about how through constant improvements in technology, his members are able to respond to increasingly stringent and complex guidelines mandated by the US Customs and Border Protection(CBP). He felt that the US postal service needed to step up to the plate to increase speed and improve security, for which significant investments are needed to be made. This is happening, albeit slowly. His members in the Express Association of America, had already developed a lot of the best practices vis a vis the CBP.

At the end of the day, air cargo in the US, (as in the rest of the world) is a challenged business. As per John Heimlich, Economist for Airlines for America, even though US airlines are in the best part of their profit cycle, operating well above their costs of capital, these major combination carriers get less than 5% of their revenue from air cargo. With air cargo down double digits in the US since the year 2,000 industry leaders will need to carefully craft new strategies to re-invent the North American air cargo industry.

See you in Budapest for the Cool Chain and Air Cargo Handling Conferences.

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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Budapest Airport handles record cargo volumes and sees continued growth in first half of 2017

Budapest, Hungary, Wednesday, 13th September 2017

Budapest Airport processed a record 72,161 tonnes of cargo from January to July 2017, up 19.6 per cent on the same period last year.

The Hungarian capital recorded 49,420 tonnes of air cargo, up 16.7 per cent, and 22,741 tonnes of trucked cargo, up 26.5 per cent compared to last year.

July figures grew 16 per cent to 10,729 tonnes, including 7,432 tonnes of airfreight, up 15.5 per cent on July 2016, and 3,297 tonnes of trucked freight, up 17.2 per cent.

Budapest Airport

“Budapest has a balanced market share, with inbound cargo at 47 per cent in the first half of the year, and outbound cargo at 53 per cent,” said Jozsef Kossuth, Cargo Manager, Budapest Airport.

“The high export volumes are testament to the continued industrial development of the Central European region.

“All segments of our community, including freighters, belly cargo, and integrators enjoyed volume increase in this period compared to 2016, which was already a record cargo year at Budapest Airport.”

North America, Central America, and Asia were the largest markets for Budapest Airport, each accounting for 45 per cent of total volumes, with the remaining ten per cent coming from the Middle East, South America, and Africa.

The Central European hub grew thanks to new cargo flows from long-haul passenger routes, from operators including Emirates and Air China, in addition to volume increase from freighter partners, including Qatar Airways Cargo, Cargolux, and Turkish Cargo.

“Budapest Airport benefits from an extensive road network to 20 European Union (EU) and non-EU countries within trucking distance of our airport,” said René Droese, Property and Cargo Director, Budapest Airport.

“Together with the airline development team at Budapest, we have leveraged a strong belly cargo network, with Air Canada having already commenced seasonal flights to Budapest, and American Airlines scheduled to launch a daily service from Philadelphia, USA, to Budapest in the summer of 2018.

“The Polish flag carrier LOT Polish Airlines will also launch six direct flights per week from Budapest to New York and Chicago in May 2018, creating an additional direct link between the USA and Hungary.”

Budapest Airport is transforming its cargo facilities, as part of the BUD:2020 Development Programme, which will include two state-of-the-art express facilities, and a dedicated freight centre called Cargo City.

Budapest Airport is sponsoring the Cool Chain Association Pharma and BioSciences Conference and the Air Cargo Handling Conference, in Budapest on 18th-19th September and 19th-21st September 2017 respectively.


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Tigers launches rail freight service linking destinations across the new Silk Road

Hong Kong, China, Tuesday, 12th September 2017

Tigers has launched a new rail freight service, called Tiger Rail, offering customers a 16-day transit time both east and westbound, between Duisburg, Germany, and Hefei, Chongqing, and Chengdu, China.

Tiger Rail customers can charter a train, or book Full Container Load (FCL) or Less than Container Load (LCL) shipments on weekly scheduled services to and from over 15 origin stations in China.

The Hong Kong-headquartered supply chain specialist is also planning to offer e-commerce customers shipping parcels from Europe to China a cost-effective service along the new Silk Road.

“We have seized the opportunity to provide integrated logistics for our customers, who increasingly require shorter transit times than ocean freight, and lower costs than airfreight, making Tiger Rail the perfect solution,” said Paul Huang, Managing Director, Tigers China.

Tiger

“Our customers benefit from lower shipping costs by empty container return in Switzerland for westbound services, and Shipper’s Own Container (SOC) for eastbound services, for both FCL and LCL.

“Tigers has already supported customers to transport over 500 TEUs as FCL, and 1500 cubic meters (CBMs) as LCL along the new Silk Road.”

Tiger Rail’s inaugural shipment took place over the summer, on behalf of one of one of the largest manufacturers of exhaust and suspension systems, which chartered a train to transport construction materials, auto parts, and electronics.

“We are currently preparing test shipments for European Union (EU) Business to Consumer (B2C) parcels importing to China with Tiger Rail, and look forward to expanding our rail freight capabilities even further,” said Andrew Jillings, Chief Executive Officer and Group Managing Director, Tigers.

Tiger Rail customers can track and trace their freight shipments using the Tiger Trax platform.

The launch of Tiger Rail comes only weeks after Tigers achieved Authorised Economic Operator (AEO) certification in the UK, expanded its footprint with a new office in Leeds, and launched a post-Brexit solution to combat any disruption caused by Brexit.


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Qatar Airways Launches Service to Adana, Turkey

DOHA, Qatar, 12th September 2017

Award-winning airline continues expansion with launch of service to Turkey’s fast-growing agricultural and industrial centre. New three-times-a-week service set to start on 6 November

Qatar Airways has responded to increased customer demand for service to Turkey by launching direct flights to the southern city of Adana, the airline’s fourth route to the country. The new three-times–a-week service is in addition to the airline’s existing flights to the capital Ankara, and services to historic Istanbul’s two main airports.

From 6 November 2017, Qatar Airways will operate an Airbus A320, with 12 seats in Business Class and 132 seats in Economy Class on flights between Doha and Adana Şakirpaşa Airport. It will be the first five-star Middle East airline to offer flights to and from Adana.

Located at the crossroads of Anatolia and the Middle East, Adana is Turkey’s fifth largest city and a major agricultural and industrial centre. A short distance from the Mediterranean coast, it is also famous for its traditional Turkish cuisine, and boasts several historic monuments and architectural landmarks, making it an ideal starting point for holiday-makers wishing to explore historic Turkey.

Qatar Airways Group Chief Executive, His Excellency Mr. Akbar Al Baker, said: “Qatar Airways’ new service to Adana will help reinforce links between the State of Qatar and the Republic of Turkey and deepen the friendship and co-operation between our two great countries.

“Adana is an agricultural and industrial powerhouse, so our new three-times-a-week service will help boost all-important trade and commercial links between Qatar and Turkey. It will also increase tourism to a city renowned throughout Turkey for its incredible local cuisine which acts as a magnet for food-lovers. We are delighted to connect southern Turkey to more than 150 destinations worldwide through our five-star hub, Hamad International Airport in Qatar.”

Adana Şakirpaşa Airport is the sixth-busiest airport in Turkey. At just 3.5km from the city centre, its international terminal can accommodate up to three million passengers a year.

Qatar Airways currently operates flights to three destinations in Turkey, with separate services to Istanbul’s Sabiha Gökçen Airport (twice a day), and Istanbul Ataturk Airport (10 times a week) as well as daily flights to Ankara.

Qatar Airways has a host of exciting new destinations planned for the remainder of this year and 2018, including Canberra, Australia; Chiang Mai, Thailand; Rio de Janeiro, Brazil and San Francisco,U.S., to name just a few. Qatar Airways has received a number of major accolades this year, including Airline of the Year by the prestigious 2017 Skytrax World Airline Awards, making it the fourth time it has been given this global recognition. As well as being voted Best Airline by travellers from around the world, Qatar’s national flag carrier also won a raft of other major awards at the 2017 Skytrax award ceremony, including Best Airline in the Middle East, World’s Best Business Class and World’s Best First Class Airline Lounge.


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IATA: Air Freight Market Analysis - July 2017

Air Freight Market Analysis - July 2017
Released 5th September 2017


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

• Global freight tonne kilometres (FTKs) posted double-digit annual growth for the 4 th time in 5mths in July (11.4%)
• The robust growth in freight volumes since early-2016 has been consistent with the typical pattern seen during upturns in the economic cycle. However, indicators suggest that the upturn in FTK growth may be nearing a peak
• African airlines posted the fastest international FTK growth rate in July, alongside robust growth for the major regions.
• FTKs grew by more than three times the pace of capacity in July, which resulted in the load factor rising sharply. IATA Consulting



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500th Opticooler in use at DoKaSch

Frankfurt am Main, September, 4th, 2017
The DoKaSch Temperature Solutions GmbH is expanding its fleet of Opticoolers with 50 new RAP-containers. Now 500 active “Made in Germany” containers are globally available. More units are expected, to push ahead with further expansion.

The Opticooler provides reliable transport conditions for shipments across continents and climate zones or during unexpected events, for goods that must be kept within a very strict temperature range. These shipments mainly include pharmaceuticals such as insulin, vaccines and other bio-pharmaceuticals, but also high-tech equipment.

500th Opticooler

Equipped with battery powered cooling compressors and heaters as well as a self-regulating temperature control, the internal temperatures consistently stay well within range at any point in the storage area. Temperatures between 2 - 8°C or 15 - 25°C for example can be maintained, regardless of the ambient temperatures, that may vary between -30°C during a Canadian winter or +50°C during a middle-eastern summer.

The flying “smart warehouse” only needs one electrical outlet to fully charge the energy storage after a flight and to ensure that always enough power is available to deal with unexpected events. A full charge, from 50 to 100 percent, can be achieved approximately within two hours.

“We are proud, that our products have proven worthy in the day to day air cargo business and that we can offer our customers an extremely reliable product. We therefore provide a solution to tackle the difficulties in the global cool chain logistic” says Andreas Seitz, managing director of DoKaSch Temperature Solutions.

Originally the Opticooler was developed for Lufthansa in 2004. Since 2014 the containers are available at many other airlines as well.


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New Director of Operations at Jettainer

Frank Mühlenkamp takes over the leadership of the operations department
Frankfurt, 1 September 2017


Frank Mühlenkamp is now strengthening Jettainer GmbH as its new Director of Operations. He is therefore responsible for the complete management and maintenance of about 90,000 containers and pallets (ULDs) worldwide that are operated by 24 airlines in conjunction with the leading international service partner for outsourced ULD management. .

Frank Muehlenkamp

Mühlenkamp launched his career at the Ground Operations department at the Lufthansa hub in Frankfurt. After spending two years at Augsburg Airways, he returned to the Lufthansa Group. Mühlenkamp held several leading positions in the ground and flight operations departments and worked in Germany, Europe and the United States.

“We’re delighted to have found an extremely competent manager in the person of Frank Mühlenkamp; he brings with him many years of experience in the operational business and an excellent knowledge of the aviation industry,” says Carsten Hernig, Managing Director of Jettainer GmbH






Qatar Airways Cargo and DoKaSch sign master agreement

Frankfurt, 23 August 2017

DoKaSch Temperature Solutions, provider of climate-controlled solutions for air shipment of temperature-sensitive cargo, expands its customer base by signing an agreement with Qatar Airways Cargo. This enables customers to directly lease the newest technology of Active Containers, RKN and RAP Opticooler ® , from Qatar Airways Cargo all around the globe.

Qatar Airways’ Chief Officer Cargo, Mr. Ulrich Ogiermann said, “We understand the intricacies of a seamless cool chain and always aim to provide value to our customers. Through this agreement with DoKaSch Temperature Solutions, we have now expanded our active container offering for customers, presenting our business partners with more options to transport their pharmaceuticals globally.”

Andreas Seitz, Managing Director of DoKaSch Temperature Solutions, adds: “We are very pleased to make our Opticooler ® available through the number three biggest cargo airline worldwide. We are convinced that with the extensive and fast growing flight network of Qatar Airways and our joint commitment to quality and customer satisfaction, this cooperation will provide a great solution for the global pharma cool chain.”

DoKaSch Temperature Solutions runs a well-recognized fleet of Active Cool Containers RAP and RKN Opticooler. Both are equipped with electric/battery powered cooling compressors and heaters, and require no dry ice. This high-end-packaging-solution safeguards the efficacy of vital pharmaceuticals throughout global transportation chains.

Valued for their exceptional reliability and performance in any climate, these active containers keep the cargo within a temperature range of 2 to 8 degree celsius or 15 to 25 degree celsius. The system features a straightforward touchscreen interface, making the temperature setting extremely dependable.


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