Beruflich Dokumente
Kultur Dokumente
The Trade Magazine for the Asia-Pacific & Middle East Regions Vol. 33, No. 9, September 2017
Publisher
Annie Tan | annie.tan@contineomedia.com
Bullish Air Cargo Forecast
F
EDITORIAL
ollowing such a successful first half, many believe this should carry on well into
Cheryl Soh the second half of the year. Especially, considering just how many facets of modern
Tel: +65 6521 9784 | cheryl@contineomedia.com
day life heavily depend on air cargo. Moving high-value, time and temperature
Contributors sensitive cargo, from one side of the world to the other would not be conceivable
Jackie Lee in Singapore, Karen E. Thuermer in United States,
Michael Mackay in Bangkok, Sharng G in India without it. For those of us who shop online, aviation has made it possible to actually
receive those purchases in next to no time, considering the distances they have to cover,
SALES & AD ADMIN within a short time frame. Its hard to imagine a time when everyone relied on just sea
Associate Publisher
Susan Ng shipments for cargo.
Tel: +65 6521 9773 | susan.ng@contineomedia.com
Marketing Executive
Fun fact: Did you know that the word Nippon is the official Japanese language name
Ficus Zheng | ficus.zheng@contineomedia.com for Japan...?
Kenneth Peh | kenneth.peh@contineomedia.com
Ad Admin Executive In this issue of Payload Asia, we speak to Nippon Cargo Airline (NCA), Japans first
Chan Koe Shan cargo airline. With its sights set on key routes across the transpacific, connecting Asia and
Tel: +65 6521 9748 | koeshan.chan@contineomedia.com
the US, NCA have recently entered into another agreement with Atlas Air, which will see
PUBLISHING SUPPORT Atlas operating a second Boeing B747-400F on behalf of NCA from September onwards.
Editorial Production Manager This partnership expansion follows the successful agreement they entered into in January
Pauline Goh | pauline.goh@contineomedia.com
this year.
Graphic Designer
Olive Chan | olive.chan@contineomedia.com
You will notice your copy of Payload Asia is a little heavier than usual this month, and
this is mainly due to the annual Americas Supplement. We present an overview of the
Web Operations Executive
Franco Nelo M. Sevilleja | franco@contineomedia.com industry from the viewpoint of those living on the other side of the world. On a whole,
there is cautious optimism on the transpacific air cargo demand, where key industry
FINANCE personnel are on the notion that over capacity and the strong US dollar are to be blame
Finance Manager
Kenny Yeoh | kenny.yeoh@contineomedia.com for this impact on demand.
CEO Be sure to join us at the Payload Asia Conference to participate in a more detailed
Raymond Wong | raymond.wong@contineomedia.com
discussion and analysis on some hot topics set to impact the air cargo industry. This years
edition will be held at the Crowne Plaza Hotel in Singapore. Make sure you register for
the conference at conference.payloadasia.com
COV ER
Payload Asia is published eleven times a year by Contineo The Trade Magazine for the Asia-Pacific & Middle East Regions Vol. 33, No. 9, September 2017
New appointment at
Fraport AG
As of October 1, Felix Kreutel will
take over as head of Fraport AGs
Cargo Development & Management
department. Kreutel will succeed Dirk
Schusdziara, who has successfully
held this position for the previous two
years. Schusdziara will become head
of the Commercial Affairs department
at Fraport AGs Airside & Terminal
Management, Corporate Safety &
Security strategic business unit, where
his responsibilities will include Fraports
airport charges policy.
4 PAYLOAD ASIA | September 2017
GATE W AYS
spanning diverse activities such as spent nearly three years establishing Japan Airlines and Vietjet
forwarding, road transport, express, Uber Chinas business before it was
warehousing, liner agency, and ocean acquired by Didi Chuxing in 2016. His launch comprehensive
consolidation. It has bases in Moscow, experience in London with UK start- partnership
Saint Petersburg, Riga, Klaipeda, Helsinki, up Rangespan taught him how quickly Japan Airlines (JAL) and Vietjet have
Minsk and Hamburg; a further office is technology can transform traditional signed a formal partnership agreement.
planned in Tashkent, Uzbekistan. The businesses. This will see them start a code-
TEK Poseidon air cargo GSSA operation Chinas fast-paced start-up culture share cooperation for all flight services
is the groups newest activity. makes it an ideal place for Airbus to between Japan and Vietnam.
create a new innovation centre. Growth This is only the first step as JAL
Turkish Cargo sees 24% has come to China from manufacturing, and Vietjet are already making plans
technology and finance nowadays. to further explore opportunities to
increase on y-o-y growth Gangs first mission will be to set up the develop the partnership in various areas,
during H1 2017 innovation centre to be fully operational including a frequent flier partnership,
Turkish Cargo, which has launched when it officially opens in late 2017. In his aircraft operations and maintenance
seven new service points over the last two role, Gang will report to Paul Eremenko, as well as ground handling services
months, totalling 72 cargo destinations Airbus CTO. and training.
by the end of August 2017 from 55 at The new Airbus innovation centre, We believe it will contribute to not
the beginning of 2016. Having generated which is tasked with defining the future only generate more passengers, but cargo
a wide corridor extending to Africa of flight by identifying the next big traffic between the two countries; as well
from Asia, and to the Latin America change to transform the aerospace sector, as open up commercial opportunities
from Europe, Turkish Cargo had a very will serve to strengthen Airbus extended on the two airlines international
successful first half of 2017. innovation eco-system. networks, said Tadashi Fujita, JAL
The carrier has accomplished an executive vice president.
increase of 24.4% with respect to its
revenue and 26.1% with respect to the
Vincent Yong takes the Luu Duc Khanh, managing director
of Vietjet, said: Through the agreement
cargo carried on year-on-year basis, as helm at DHL Global signed with JAL today, Vietjet once
of the end of June. Forwarding Indonesia again affirms the airlines commitment
Thanks to the aircraft fleet it has Vincent Yong, the new Managing to innovation, leading market trends,
leveraged, Turkish Cargo boosted its Director of Indonesia for DHL Global and offering new services following the
extensive flight network, and made an Forwarding, the leading international global integration and international
indelible impression on the international provider of air, sea and road freight services, standards. Japan is our key market as
market with the addition of two Boeing is no stranger to complicated situations. we expand the airlines flight network in
747-400 freighters. The increase in As chief operating officer of DHL the Asia-Pacific region. The partnership
freighters also led to better utilization of Global Forwarding Thailand, Yong between Vietjet and JAL will diversify
the capacity. steered his team through political our air transportation products and the
Turkish Cargo ranked in the top ten of upheaval in 2006, catastrophic floods market segment while developing the
the international air cargo carriers based in 2011 and numerous changes to the two airlines relationship.
on the data presented by WorldACD countrys transport infrastructure Together with Vietjet, JAL will be
in June 2017. Having reinforced its significantly expanding the business striving to deliver greater conveniences
growth momentum with its regional and consolidating operations in a and variety of choices to customers
accomplishments, the carrier has become with a more comprehensive network
100,000-sqft Multimodal Hub at
the third air cargo company linking up in Asia.
Suvarnabhumi Airport in the process.
Pakistan, Poland and the United Arab
Emirates to the world, and the fifth
air cargo company linking up Austria,
Bangladesh, Egypt and Finland to the
world, gaining a growth success of 46.8%
in the Chinese market.
ASIA
Luo Gang appointed
to lead China Airbus
innovation centre
Luo Gang has been appointed CEO
of Airbus new innovation centre to be
set up in China.
With a degree in electrical engineering
from Tianjin University and an MBA
from the London Business School, Gang
Upcoming Supplements
October Maindeck (freighters and conversions)
November Payload Asia Conference & Awards
Advertising offices: Worldwide South Korea December/January Ground Handling
Susan Ng Kwangsok Hong
Tel: +65 6521 9773 Tel: +070 8880 1745
Fax: +65 6521 9788 Mobile: +010 9886 0729
Email: susan.ng@contineomedia.com Email: kshong2000@nate.com
Sep 26 28 POST-EXPO 2017, Switzerland Oct 24 25 Post & Parcel Services: Asia Pacific, Beijing
Oct 4 8 FIATA World Congress 2017, KL, Malaysia Nov 1 3 Air & Sea Cargo Americas 2017, Florida
Oct 9 11 World Mail & Express Asia, Shanghai Nov 8 10 14th China Air Cargo Summit, Tianjin
Oct 10 13 Inter Airport Europe, Germany Nov 23 24 Asian Logistics and Maritime Conference, Hong Kong
DELIVERING BETTER
CUSTOMER SERVICE.
I
n the early days there wasnt much departed at 10:30 pm, NCA was able to
need for a standalone air cargo entity offer customers earlier arrival, which also
in Japan. The shipping companies meant a higher possibility of same day
were able to meet all the demands customs clearance and earlier delivery.
to bring the necessary cargo into the We deliver faster than the competition.
country. However, this all changed in Complemented by the increase in time
the 1960s, with the introduction of and attention paid to each shipment
passenger aircraft that could stow away resulting from the low volumes, the
small amounts of cargo under the floors, carrier was able to build a higher degree
boosting the air cargo industry the of trust with its customers.
world over. Today, the carrier still places a very
As with the rest of the world, the high value on diversifying its product
Japanese ocean shipping industry Ichiro Watanabe, VP and General portfolio to meet customer needs.
took notice and had a keen interest in Manager Business Planning and Strategy, This is but one of the many strategies
establishing a more comprehensive cargo Nippon Cargo Airlines it has adopted to differentiate itself
system that linked both the sea and sky in the competitive market. One of
in Japan. In a mere five years, the amount stagnant market. There was a sudden NCAs advantages is that we operate a
of cargo carried to and from Japan rapid decline in demand for cargo, mainly cutting-edge B747-8F fleet mainly on
increased by almost 30,000 tons, further caused by the recession in the United the transpacific trunk line, in which
highlighting the industrys potential. States of America. the biggest demand growth is expected
Thus began plans to create what is Differentiation is a strategy long compared to other trades, explained
now known as Nippon Cargo Airline employed by NCA to meet customer Ichiro Watanabe, VP and GM Business
(NCA), the first cargo airline in Japan. needs, turning negatives into positives. Planning and Strategy Nippon Cargo
The carrier adopted a company-wide Airlines, on one of the carriers key
sales strategy to engage forwarders components to the carriers main
Resilience in the face of more aggressively and increase customer differentiation strategy.
adversity relationship development. With its NCA currently operates 25 flights
Seven years after its establishment flights heading to America leaving per week linking Asian gateways to
and inaugural flight, NCA found itself Narita International Airport (Narita: major gateways in the US; with the plan
operating in what quickly became a NRT) at 8:30 pm, compared to most that to increase this to approximately 30
12 October 2017,
2017 Crowne Plaza Changi Airport
Celebrating Excellence
in the Air Cargo Industry
Organiser Official Publication Supporting Publication Gold Sponsor Brand Cooperation Cocktail Sponsor Strategic Supporting Associations
k .
PR OFI L E
A
s a leading global logistics
provider, the Kuehne + Nagel
Providing an the pharma sector
Group has a strong position in e-commerce solution As an integral part of its strategy in
its sector, with a clear focus on providing In April this year, Kuehne + Nagel select markets across the Asia-Pacific
IT based integrated solutions. The inked a memorandum of understanding region, the pharma logistics arm of
groups strength in Asia and beyond lies (MoU) with Chinas Alibaba.com. The Kuehne + Nagel will introduce more
in its network of employees, amounting signing will see the logistics provider developments in countries including
to a workforce of over 70,000 in 1,300 offering outbound logistics services to Singapore, Malaysia, Japan, India, Australia
locations across 100 countries. Specialists shippers listed on Alibaba, expanding and China through the KN PharmaChain,
with the right knowledge and skillsets its scope of services to cover various a fully CEIV Pharma certified specialised
develop innovative end-to-end logistics modes of transportation (air, sea, rail, supply chain innovation. Coupled with
solutions, such as the KN FreightNet and overland) and contract logistics outside highly trained experts, every product is
KN PharmaChain; resulting in a steady China. This announcement follows the ensured to be handled and transported in
growth in services offered. launch of a pilot programme in 2016 the appropriate, secure and temperature
With the strong air freight market in which integrated the KN FreightNet controlled environment.
Asia-Pacific during the first half of 2017, dig it al shipment manager w ith Presently, Kuehne + Nagel is investing
Kuehne + Nagel anticipates a growing Alibaba.com. Paid Alibaba members are to upgrade its operations network of KN
demand over the peak season. So far, the able to instantly quote and book point- PharmaChain capabilities, and to expand
group has been fortunate enough to not to-point air freight consignments via the its network of specialist pharma staff.
see a traditional slack season, however, Alibaba One-Touch platform, including Plans are already in place to work with
the downside is the capacity issues the less-than-container consignments. pharma customers to expand and invest
group face that arises as a direct result. The KN FreightNet is an online in strategies that are mutually beneficial.
Whilst additional capacity is entering the solution that increases the efficiency of In China, the group has also expanded its
markets on some main lines, Kuehne + placing airfreight orders. perishables air freight services to provide
Nagel predicts that space will remain Through an efficient exchange of door-to-door solutions, including custom
tight especially toward the end of Q3 and data, the programme is designed to be clearances in several locations. This opens
the beginning of Q4. Periods including straightforward, easy to use, and aims to up opportunities for Kuehne + Nagel China
Black Friday, Christmas Sale and other reduce workload and speed up airfreight to successfully handle shipments of live
e-commerce promotional periods will also processes. Quotations can be provided seafood, flowers and fresh food products
greatly impact capacity levels. instantly by obtaining competitive prices in a temperature controlled supply-chain.
If you rely on the right temperature for your freight, then Cool/td
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T
he Federation of Asia-Pacific FIATA activity and liaison report. IATA / CASS Forum
Aircargo Associations (FAPAA) Chaired by Mr Paul Golland, Chaired by Mr Brian Wu, HAFFA,
44th Executive Council Meeting Chairman, AFIF, Australia FAPAA as Hong Kong, China FAPAA continued
(ECM) hosted by the Nepal Freight a regional federation of country / and or its businesslike working relationship
Forwarders Association (NEFFA), was region national Association members, with IATA and Rodrigo (Rudy) Reyes,
held at the Hotel Soaltee Crown Plaza, has a good working relationship with the regional manager, Airport, Passenger,
Kathmandu, Nepal between July 26th global freight forwarder representative Cargo and Security (APCS), Asia Pacific,
and 28th 2017. body FIATA. The most recent annual based at IATA Singapore, was invited to
The business meetings were attended FIATA World Congress was held in join the meeting to address a number
by a total of 41 persons, comprising of Dublin Ireland, in October 2016 and the of ongoing and emerging matters,
21 international delegates from 13 of annual Headquarters Session meetings including the sometimes controversial
the FAPAA region member economies, were held in Zurich, Switzerland in March Cargo Accounts Settlement System
as well as 18 local freight forwarding 2017, at which many FAPAA delegates (CASS), where it operated within
company member representative had attended. Amongst other issues, an FAPAA member countries in the region.
delegates; a representative from IATA; emerging matter was the imminent global Other matters discussed with IATA
and an official media representative introduction of the new IATA/FIATA Air were the aforementioned IFACP Program
from Payload Asia Magazine. Cargo Program (IFACP) and members and operational and admin issues; the
were interested as to how it would impact handling efficiencies of which varied
their own specific territory, particularly in from country to country within the
Opening Ceremony region. The IATA Customer Portal also
The meeting was officially opened by an administrative and operational sense.
The member from the Australian came in for some criticism in that costs
Mr. Prakash Singh Karki, President of
Federation of International Forwarders associated with updates by members
NEFFA, who highlighted the expanding
(AFIF) advised that IATA and FIATA were thought to be unreasonable.
role of freight forwarders and the
opportunities and challenges facing the were both keen to introduce the
sector in the region. new program into Australia in early Air-cargo security
2018, following the intended initial This vital issue is a regular agenda item
introduction in Canada. However, and members exchanged unclassified
The Executive Council AFIF had made it clear to both IATA information on developments as to
Meetings and FIATA that it would continue program changes within their regions.
The first day of the business meetings to explore ways in which the new Australia recently had a major upgrade
revolved around sub-committee reports program could benefit its membership to their program, as required by the US
and detailed discussions on the various in Australia, despite there being no TSA, introducing enhanced screening
sectors of FAPAA activities: clear tangible benefits to date with the technology.
The Federation of Asia-Pacific Aircargo Associations (FAPAA) was formed in 1985 and has grown to include 20 countries
and regional members: Australia; Bangladesh; Brunei; China; Hong Kong, SAR; India; Indonesia; Japan; South Korea; Macau,
SAR; Malaysia; Nepal; New Zealand; Pakistan; Philippines; Singapore; Sri Lanka; Taiwan (ROC); Thailand; and Vietnam.
NEWS
N
e p a l Fr e i g h t Fo r w a r d e r s carrier has been recognised for uplifting of cargo out of Nepal, including
Association (NEFFA) hosted the highest tonnage out of Nepal, items such as garments, carpets and
the 23rd Nepal Cargo Day, where more than 25 international handicrafts.
on the 29th of July 2017 in Katmandu, carriers operate. Turkish Cargo came in as the carrier
complete with a gala dinner and awards Mr. Ulrich Ogiermann, chief officer with the second largest capacity linking
ceremony. The awards, which are also Cargo said, Nepal is an important Katmandu to the world, receiving the
held every year by NEFFA, honour market for us, and we are delighted to Cargo Excellence Award.
the top three carriers for their roles in receive this recognition. Qatar Airways Pratik Sharma, from Turkish Cargo
supporting the Nepals exports and Cargo has always considered its role as general sales agent in Katmandu, was
this year the honour was awarded to fundamental to facilitating international presented with the certificate of high
Qatar Airways Cargo, Turkish Airlines trade to support the Nepalese economy, achievement and appreciation by
and Cathay Pacific. while ensuring that our customers Nanda Kishor Pun, the vice president
Qatar took home the award for ne e d s are at the centre of our of Nepal, at the ceremony.
achieving the highest export tonnage business goals. This years event was also graced
out of Nepal for the year 2016. This is Last year, Qatar Airways Cargo by Nepal government officials and
the ninth time that the award-winning transported more than 2,700 tonnes members of FAPAA.
EX P RE SS & M A IL
AMI boosts express information are all available online and, the international parcel and eCommerce
if the collection and delivery points are business and the global Express
imports with online quotes confirmed prior to booking, an accurate business in particular, driving the
AMI, UKs recently-launched, trade- transit time can also be confirmed. While growth. With EBIT of EUR 841 million,
only online express imports service has click2ship Express Imports is intended to Deutsche Post DHL Group recorded the
already boosted traffic by 10% in its first provide an all-inclusive service, agents can strongest second quarter in its history,
three months, and is speeding up quotes still opt to perform some functions, such and the seventh consecutive quarter in
and saving customers hours of research. as customs clearance themselves. which the company has posted an all-time
click2ship Express Imports aims to click2ship Express Imports is aimed quarterly high.
make handling imports less labour- primarily at smaller and lighter shipments, Group revenue grew by 4.4% to EUR
intensive and more profitable for couriers but can also prove attractive for larger 14.8 billion in the second quarter. The
and freight agents, by enabling customers consignments. The only commodities it companys operating profit increased
to obtain an online quote for any express cannot accept are lithium batteries and by 11.8% to EUR 841 million. The
import shipment. The easy-to-use all other dangerous goods. improvement in the groups profitability
inclusive pricing tool includes freight AMIs new click2ship Express Imports was driven largely by the Express (+12.2%)
charges, collection at origin, delivery at service is global, and is the latest online and Supply Chain (+21.6%) divisions, both
destination and all Customs processing. offering from the company, which now of which achieved significant double-digit
The new service takes the place of transacts over 40% of its global business growth in operating profit.
telephone enquiries - producing accurate, through its web portals. Cons olidate d ne t prof it af ter
instant quotes that couriers and agents non-controlling interests increased by
can use to provide instant prices for 11.3% to EUR 602 million against the
their own customers based on prime DHL Group records prior-year level (2016: EUR 541 million)
integrator suppliers. strong growth in Q2 thanks to the increase in operating
A click2ship Express Imports quote is Deutsche Post DHL Group, the worlds profit. Basic earnings per share saw a
easily converted to a booking; the system leading mail and logistics company, corresponding increase, rising from EUR
then generates all the paperwork, which increased revenue and operating profit 0.45 in 2016 to EUR 0.50 in 2017.
AMIs agent customer can forward to significantly in the second quarter of Following the successful first six
his customer and their overseas supplier. 2017. Group revenue increased by EUR months, the group continues to forecast
Regular updates, notifications and tracking 623 million to EUR 14.8 billion, with an increase in EBIT to around EUR 3.75
Tomorrows
The evolution of the air cargo terminal and ways of future proofing
Cargo Terminal
Big data
How can big data analytics be used to drive profits
analytics
Organiser Official Publication Supporting Publication Tripartite Host Sponsors Gold Sponsor Strategic Partner Sponsor
Panel Sponsor Lunch Sponsor Coffee/Tea Break Sponsor Strategic Supporting Associations Supporting Partners
Supporting Associations
.
LO GI STI C S
Tigers gear up for To facilitate this planned expansion,
the MOU will grant Shanghai Pharma
Brexit growing global priority access to DHLs global logistics
footprint net work i nclud i ng temperat u re-
Tigers Global Logistics Limited has sensitive life sciences services to
opened a new office in Leeds, UK and Europe. DHL Supply Chain will also
has been certified as an Authorised support Shanghai Pharmas supply
Economic Operator (AEO) in the United chain optimization needs as the
Kingdom (UK). manufacturer ramps up its overseas
Customers of the supply chain distribution and retailing efforts.
specialist will benefit from a lower rate
of compliance inspections, a reduction Kerry Logistics
in the number of Customs control
checks, and simplified documentation manages Maxims DC
for imports and exports, thanks to the Kerry Logistics Network Limited
AEO certification. problems and disputes when exceptions has secured a long-term contract
Global brands entering the European occur during transport, especially when with Maxims Caterers Ltd, Hong
market will be able to take advantage of the transport mode changes. The new Kongs leading food and beverage
both Tigers growing global footprint, purpose-designed legal framework company. Kerry Logistics will provide
and its Smart-Hub Connect web portal, therefore ensures the best possible integrated logistics services to Maxims
offering a virtual warehouse as part of contractual clarity and one point of Group, including cold chain solutions,
Tigers e-commerce suite of products. contact for the customer. supporting the caterers more than 780
Tigers post-Brexit solution creates Panprojects Carrier works closely outlets in Hong Kong and key accounts,
a virtual single logistics facility, giving with all leading multipurpose and 365 days per year. This strategic
customers a one-stop-shop to combat heavy-lift carriers of the world. It has cooperation signals the collaboration
any disruption caused by Brexit by access to over 2,300 specialized vessels of two industry leaders in Hong Kong,
physically placing products across the in the market. The most suitable carrier and exists to serve the Hong Kong
UK and European Union (EU), whilst and vessel for each move is selected by community with a speedy and hygienic
offering full visibility, inventory control, Panalpinas Energy and Project Solutions food supply.
a single IT integration, a single tariff, experts. The companys stringent The new strategic cooperation will
and one currency billing. subcontractor management system see Kerry Logistics managing Maxims
The new office in Leeds, the groups additionally covers all companies and new Central Distribution Centre
seventh to open in the UK, brings the equipment that are employed for pre- (DC) with multi-temperature storage,
total number of Tigers offices in Europe and on-carriage of project cargo by road accommodating Maxims extensive
to 13 including offices in Germany, or rail. Furthermore, the companys product range. Kerry Logistics will
Switzerland and the Netherlands. transport engineers make sure that any also provide a wide range of value-
technical issues are prevented. added services and daily replenishment
to Maxims restaurant chains and
Panalpina offers hassle- key accounts.
free carrier solution Shanghai Pharma and
International freight forwarding DHL join forces CEVA enhances
and logistics company Panalpina has Shanghai Pharma, one of Chinas
launched Panprojects Carrier. With largest listed pharmaceuticals groups, has Dublin facility
this new carrier model, Panalpina can signed a Memorandum of Understanding CEVA Logistics, one of the worlds
oversee multimodal heavy-lift moves (MOU) with DHL Supply Chain, to largest supply chain management
from fabrication to installation sites prepare its logistics infrastructure for companies has enhanced its capabilities
under one single contract that clearly rapid global expansion. in Dublin with the introduction of
governs all modes of transport. For Under the MOU, the pharmaceuticals a 15,000 square foot temperature-
customers like EPC (Engineering, giant which generated revenues of control led faci lit y at its Dublin
Procu rement a nd Con st r uc t ion) almost RMB121 billion last year will warehouse. The new building has been
companies and oil and gas majors, this partner with DHL Supply Chain to constructed as an insulated building-
offering with its unique legal framework enhance quality control measures, within-a-building, on the citys airport
reduces to an absolute minimum the streamline distribution processes, and industrial park and will allow it to better
commercial, technical and contractual strengthen compliance with local and serve customers with medical products
risks that are inherent to the multimodal international food and pharmaceutical requiring to be kept within a constant
transport of project cargo. regulations. A range of recent government temperature range of 15-25 degrees.
The single contract under which initiatives, including the two- invoice The new Dublin unit also features
Pana lpina of fers its mu ltimoda l or fapiao policy which was rolled out state-of-the-art air conditioning, heating
solutions is consistent with the released earlier this year, have put greater onus and cooling technology complete
transportation documents such as bill on Chinas pharmaceutical sector to with a Sintra system which provides
of lading and the general terms and improve the transparency and efficiency exceptional levels of clean air by using
conditions. This greatly helps to avoid of local supply chains. perforated ducts to diffuse the air
AMERICAS
SUPPLEMENT
T
heres some cautious optimism Sales Americas. Most indicators are
about transpacific air cargo similarly encouraging but, given the
demand. rise in global political tensions and
Tom Crabtree, spokesman for certain trends in currency fluctuations,
Boeing, points to new aircraft orders. were not counting our chickens
A big one: UPSs 14 747-8 freighter regarding the peak.
order in October with options for 14 Vita Cerone, senior director of sales,
additional aircraft. While there is no commercial strategy, Air Canada, says:
indication whether or not these aircraft, Cargo volumes are up globally. Given
scheduled for delivery between 2017 our own increased volumes, were
and 2020, will be flown on transpacific anticipating a robust fourth quarter.
routes, that market does represents Eric Anderson, director for Asia-
the worlds largest for freight ton Pacific sales at Delta Cargo, sees over
kilometers (FTKs). Jim Bellinder, VP Cargo Sales Americas capacity as among one of the biggest
Another positive, says Crabtree, factors impacting air cargo on the trade
is the quickly dwindling number of 2016. Freight capacity grew 5.2% YOY lane . The biggest impact to air cargo
parked 747s. If healthy growth is in June. from North America to Asia is industry
sustained, we are confident there will be Until this past year, the air cargo over-capacity relative to demand exit
more freighter orders in 2017, he says. industry has had fits and starts, the USA and the strong US dollar, he
The International Air Transport comments Crabtree. Because of the says. This is contributing to an overall
Associations (IATA) data for global air historic weakness over the last few increase in imports, but is negatively
freight markets show global demand decades beginning with the economic impacting exports levels.
grew by 10.4% in first-half 2017 downturn in 2008-2009, however, a lot He attributes the over capacity to
compared to first-half 2016 the of airlines still are reluctant to purchase the large number of widebody aircraft
strongest first half-year performance aircraft. deliveries that have been introduced
since air cargos rebound from the After what IATA has called the into service in recent years. These large
Global Financial Crisis in 2010. The strongest first half-year performance belly aircraft are capable of carrying 25
data is nearly triple the industrys for air cargo since 2010, we are tons or more of freight depending on
average growth rate of 3.9% over the fairly optimistic this momentum the destination, he says.
last five years. IATA also reported that will carry through to the holiday A secondar y contributor to
year-on-year (YOY) demand growth in season, comments United Cargos impacting air cargo is the US dollar.
June increased 11% compared to June Jim Bellinder, vice president, Cargo Currently the dollar is strong, making
w w w.AnchorageAirpor t.com
www.AnchorageAirport.com
operations. CORE will double its less sensitive to seasonality, reports Air Cargo, Air China Cargo, China
current capacity. Frederick Badlissi, Los Angeles World Airlines Cargo, Nippon Cargo Airways,
Anchorage International Airport Airports spokesman. LAX has been Singapore Airlines Cargo, Qantas
(ANC) ranks No. 2 behind Memphis a major gateway to the Pacific for at Freight, and Cargolux Italia.) Most
(MEM) for total cargo because it least 50 years and, according to freight of cargo aircraft is B747-4 and 747-8
operates as a tech-stop for aircraft forwarders, has enough daily scheduled freighters.
flying transpacific routes. ANC handled capacity by both passenger and all- Nippon Cargo Airways (NCA) has
nearly 1.070 MT for the first six months cargo carriers to accommodate all added one additional frequency per
2017, up 5.1% per the previous period. exports from the western US. week and has rerouted their DFW
For CY 2016, it handled 2.550 MT. Trudy LAX is poised to release a Request service so that DFW is now their first
Wassel, ANC Division Operations for Qualifications that may lead to US entry point, reports Milton De
Manager, says ANC anticipates a good a Century Boulevard cargo corridor La Paz, DFW vice president airline
peak season. This will begin next redevelopment and construction of relations.
month and go through about January new state-of-the-art cargo facilities, DFW has non-stop service to more
to the Chinese New Year, she says. over the next several years. In addition, than 200 domestic and international
ANC operates three runways that LAX is investing more than $14 billion destinations, including Seoul, Tokyo,
have never been closed, and has parking in airport improvements. Shanghai, Beijing, and Hong Kong.
for 60+ wide body aircraft. A big I n 2 0 1 6 , D a l l a s Fo r t Wo r t h This belly capacity provides an
advantage, Anchorage is located 9.5 International (DFW) handled more attractive alternative for smaller, more
hours from 90% of the industrialized than 829,800 US tons of air freight, an time sensitive products, he says.
world. increase of 12.8% from the previous Contributing to cargo volumes
Through 2016, total cargo at LAX year. As of July 2017, the airport handled is Amazon, which is expanding
was about 2.2 million tons. In June more than 435,900 US tons of cargo, an its distribution center at DFW to
2017, year-to-date, LAXs total cargo YTD increase of 12% that puts DFW on 446,000 square meters by end of 2018.
was 1,149,781 tons, a 10.35% increase track to surpass cargo volumes of 2016. A 3,400-square-meter cold chain
over June 2016. Currently, 10 freight carriers serve facility will open in 3rd quarter. The
Relative to other ports, LAXs Asia from DFW (Korean Air Cargo, 3,400-square-meter facility will be
demand for international cargo is Cathay Pacific, Asiana Cargo, EVA operated by Dubai-based Dnata.
PROUDLY CELEBRATING
80 YEARS OF
EXCELLENCE
A YEAR TO CELEBRATE
This year marks the 150th anniversary of Canada and Air Canadas 80th birthday.
On this landmark occasion, we would like to thank you, our customers and
partners, for your continued support. As we look forward to the future, we at
Air Canada Cargo continue to aim higher, striving to deliver the services you
need with utmost expertise and care, with a truly Canadian spirit.
2nd phase of Northeast tonnes in 2017. This marks another per share (non-GAAP) increased to
record year for cargo at OHare-one $2.55. Revenue was $22.7 billion,
Cargo development of the nations premier cargo airports. reflecting planned production rates
opens at OHare The Northeast Cargo development and timing of commercial and defense
The second phase of the $220 expands and enhances the efficiency aircraft deliveries. Backlog also grew to
million Northeast Cargo development of the airports cargo operations at no $482 billion, including $27 billion of net
was unveiled at OHare International cost to Chicago taxpayers, funded by a orders during the quarter.
Airport (OHare) recently in August. The $160 million investment by Aeroterm For the full year, GAAP EPS guidance
opening was attended by Mayor Rahm and more than $62 million of airport increased to between $11.10 and
Emanuel, the Chicago Department of funds. The 240,000-square-foot Phase $11.30 from $10.35 and $10.55 and
Aviation (CDA), Aeroterm and cargo II building is home to Burak, Cargolux core earnings per share (non-GAAP)
executives. and Swissport tenant operators. When guidance increased to between $9.80 and
The new cargo facility opened ahead complete, it will be the largest airside $10.00 from $9.20 and $9.40, primarily
of schedule in direct response to the cargo development built in the last driven by improved performance across
strong demand for moving air cargo decade at a U.S. international gateway the company and a lower-than-expected
through Chicago to markets around airport. tax rate. Operating cash flow guidance
the world. In just under a year, the had increased by $1.5 billion to $12.25
partial completion of the northeast Boeing reports strong Q2 billion on solid execution and a cash
cargo development has already created tax benefit from accelerating pension
approximately 600 permanent jobs,
results and elects board funding in the third quarter of 2017.
outpacing earlier projections that it member Additionally, capital expenditures
would create 1,200 jobs when the The Boeing Company (Boeing) guidance decreased by $300 million to
project is completed. reported strong results for the second- $2.0 billion.
Wi th O H a re s n e w e s t c a rg o quarter, with a rise in Earnings Per Our robust cash flow enabled us
development on track and ahead of Share (EPS) and operating cash flow to return more value to shareholders,
schedule, air cargo volume is already that is driven by improved operating invest in future growth and in our
up by 15 percent over last year, putting performance. Second quarter GAAP people, including a plan to accelerate
Chicago on pace to handle 1.8 million EPS increased to $2.89 and core earnings pension funding that also reduces
risk and cyclicality in our business, at AAR Landing Gear Services, AAR The CCC was launched earlier
said Chairman, President and Chief Corp. He joins the team with 28 in August, and will support daily
Executive Officer, Dennis Muilenburg. years of experience in the aerospace cargo operations across the globe.
As we look to the second half of industry, holding positions in Rolls- The new Atlanta facility provides
the year, our teams are focused on Royce and Goodrich Landing Gear comprehensive coverage of all aspects of
accelerating productivity, quality (now part of United Technologies cargo transportation and management,
and safety improvements across Aerospace Systems). with the ability to track air shipments,
the company, while completing key trucks, mail, and freight domestically
development efforts and delivering and internationally. The team will
better capabilities and economics to
Delta Cargo makes key
have the ability to view the individual
our customers. decisions elements of the shipment lifecycle and
In August, Boeing announced that Delta Cargo (Delta) reported the will be able to identify issues before they
Caroline B. Kennedy has been elected highest average NFD percentage for take place, as well as provide proactive
as a new member in the Boeing total airport to airport shipments communication and support in the
board of directors. Serving as a US amongst North American carriers situation of a delayed or cancelled flight.
Ambassador to Japan from 2013 to over the last 12 months at 81.31%. This Delta also appointed Vishal Bhatnagar
2017, Ambassador Kennedy will serve continues the improved operational to the new role of Director of the CCC.
on the Boeing boards Audit and reliability trend which has seen Delta In this role, Bhatnagar will ensure central
Finance committees. lead the North American carriers control and delivery performance of all
domestic belly-carrier market in freight and mail destined worldwide,
AAR signs with Hawaiian average NFD performance for total from booking, to tendering, to build-up,
airport to airport shipments over the to plane-side, to loading, to unloading
and announces new last three quarters. and to customer pick-up. In addition to
appointment Delta has made significant the CCC he will also be responsible to
AAR secured its first Airbus NEO investment in its technology systems manage Worldwide Trucking, Global
fleet customer through the signing and infrastructure as part of its focus Logistics and Trade Compliance and
of a long-term component support on operational reliability. This include all Cargo Customer Service Centers,
agreement with Hawaiis largest airline, transforming the Atlanta Warehouse, reporting to Julian Soell, Managing
Hawaiian Airlines (Hawaiian). AAR will the expansion of the New York-JFK Director Cargo Customer Experience
be providing a comprehensive flight- Warehouse, the relocation of Delta and and Operations.
hour component support for Hawaiians KLM to a One-Roof warehouse in Prior to Bhatnagars appointment,
brand new fleet of 18 A321neos, via its Salt Lake City and the installation of a Delta had named Shawn Cole as Vice
inventory hub in Chicago and stock new X-Ray machine allowing full skid President of Delta Cargo. Cole will be
positioned in Hawaii and other strategic X-raying, RFID tracking technology responsible for ensuring that the airlines
operating hubs. on cargo shipments with expected logistics division continues to deliver
AAR had also announced the rollout across the system in 2018, and on superior commercial, financial and
appointment of Mark Parry as the the launch of a new Delta website and operational performance. He previously
Vice President of Sales and Marketing Cargo Control Center (CCC). served as Vice President Finance
and Corporate Planning, where he
demonstrated his extensive experience
in leadership, financial planning, analysis
and team coordination.
Following the award of the IATA
CEIV Pharma logistics Certification in
July, Delta announced the approval for
the carriage of the Envirotainer RAP e2
in Deltas domestic and international
widebody aircraft. This container is
ideal for shipments requiring strict
temperature control between +0C
and +20C.
The approval of the Envirotainer RAP
e2 enhances Deltas Pharma product
offering, which is available in Pharma 1
locations around the world. The active
container expands flight options beyond
those using the Envirotainer RAP t2, as it
does not require dry ice as a coolant. It
also provides significantly more capacity
AAR and Hawaiian Airlines signs agreement
for goods than the Envirotainer RKN e1.
Hes not dubbed the notorious for nothing. How many of us would dare After Conor went on and on about how Floyd cant read, he made it rain
or have the gravitus to pull this off? and declared: but I sure can count and I got lots to count.
End of the day, these two made more money from this one fight than most will see in
a lifetime and left fans with mixed reactions. For those who placed bets and lost, they
deserve a whole page just to themselves. This twitter user said it best:
Merchandising:
Special mention has to go out to all those that jumped on the
49 and 1 bandwagon. Our question is, what are you going to do
with all that merchandise now? *awkward*
Despite the outcome, we can all agree that both guys deserve a round of applause for conning
us all into thinking they actually hate each other, when deep down they actually have mutual
respect for one another.
But all jokes aside, both these guys did a amazing job. Props to Conor McGregor just for stepping
into the ring and hanging with one of the best for so many rounds, and Floyd Mayweather for
getting the job done, 50-0 is something to brag about.