Vol. 10 No. 1                                                 WE COVER THE WORLD                                                    Monday January 3, 2011

 

Celebrating 10 Years!
2001-2011

     It seems just like yesterday.
     I turned 60 on September 10, 2001 and had been feted in a gala party at the Four Seasons Restaurant in Manhattan.
     The next day, bright and warm and sunny, was 9/11 and the World Trade Center horror.
     So many things changed forever.
     Looking at our WTC passes into Tower One, which were issued on September 10, 2001, we wondered why fate had us deliver some materials to the Port Authority Aviation Department less than 24 hours before the attacks that brought the towers down forever.
     As the world was eyewitness to the full story as it unfolded on television, I started thinking about the speed of change, and later about the slow response offered by our print media at the time, the Original Air Cargo News.
     In early November 2001 FlyingTypers was born and began publishing items and stories, delivered first by fax and then later via the internet.
     Our mailing list contained only 98 names at first.
     But issue by issue and day by day we grew – adding worldwide correspondents in India, China, Europe, Latin America and the Middle East.
     So… were we right?
     Just one look at the duplicity of others in our format and story lines stolen indicates that we were.
     As we move ahead, the challenge toward continued excellence is keenly felt by all of us as we dedicate ourselves to the task of innovation in our air cargo reporting.
     Today FlyingTypers is acknowledged by many as the number one platform in the world in terms of readership, innovation, speed, and frequency for air cargo industry trade journals.
     FlyingTypers is an ongoing conversation with the global transportation industry that delivers 140 times a year with honesty, trust and access as the foundation of everything we do.
     Now as we begin our Tenth Year of publishing FlyingTypers, we would like to thank all of our readers as we rededicate ourselves to the quest of being the best, to tell it like it is and to never forget how important you are.
     Later this year we will create some specials celebrating our first decade.
     In the meantime as we get back to work in 2011, we want to wish you a Happy New Year!
     We can’t wait for tomorrow because air cargo looks better everyday!
Geoffrey

 

     Annette Kreuziger had just been named Swiss WorldCargo Global Head of Marketing, capping a year of change and growth as reported here in the article above with Oliver Evans.
     As it turns out, Annette has been on an upward spiral ever since we met her some years ago in Frankfurt when she was a major part of Lufthansa Cargo Trade Lane Management (TLM) (2005-6), taking care of the China route while her colleaque Hugo Duchemin handled the North Atlantic.
     From TLM Annette moved on nicely, first as Manager Germany for Swiss WorldCargo, and now as successor to Bernd Maresch at Swiss WorldCargo Marketing.
     Often the things people say are a clear indication of the paths they will take in life and business.
     Here are some thoughts from Annette in 2006:
     “We have to be totally aware of specific market conditions.
     “Various markets require a different approach.
     “As example, Asian air carriers as well as forwarders actually never had to worry about loads – the freight was just there.
     “But growth is automatically limited by lack of profitability for every single aircraft rotation.
     “A good example is an MD-11 freighter roundtrip Munich-Hong Kong.
     “Outbound Europe (2005) there is far too much capacity in the market resulting in incredible price deflation.
     “China is the classic imbalance as loads out of China are continuously high.
     “In some cases, rates have gone up coupled with reduction of frequency and capacities offered to the market, as fuel and other factors squeeze profits.
     “Best idea is to connect traffic flows in the entire industry to maintain smooth supply chains in imports as well as exports.
     “Today’s global market requires a global approach in decision-making communication between all partners in the transportation chain.”

 

Although Annette Krueziger and Hugo Duchemin (pictured here in 2006 with Geoffrey) moved to new companies, both have stayed active in transportation development, stepping up in 2011 to new challenges.

     Interestingly, Annette’s significant other in TLM, the aforemetioned Hugo Duchemin, also moved on, but completely out of the DLH fold, to UTi where today he handles global accounts, with some specialization in the pharmaceutical industry and other cold chain solutions. Hugo told Flying Typers:
     “The TLM job at LH was one of the most interesting in my airline career, but you need to really change fields to find a new challenge.
     “Also, my MBA had encouraged me to broaden the spectrum somewhat.
     “So what I do now – connecting my clients’ organizations with UTi all over the world – is even more intercultural than any of my airline jobs, and so it is exactly my cup of tea.
     “2011 will see me extending the network we have with these multinationals, such as Bayer AG or the PPR Group.
     “It certainly is wonderful to see Annette move up and also accept new challenges.
     “All of us who know and support her are thrilled,” Hugo Duchemin said.
Geoffrey/Flossie

 


Tulsi Mirchandaney


Olga Pleshakova


Lucy Ntuba


Lina Rutkauskien


Tammy Zwicki &
Monika Lutz


Ann Smirr

Lise Marie Turpin

Suzan Tarabish
i

Marina Marzani

Karen Rondino

Susanne Keimel

Sheryle Burger

Maria Schmucker

Michelle Wilkinson

Beti Sue Ward

Donna Mullins

Alexandra Ulm

Carine Zablit

Iwona Korpalska

Lisa Schoppa

Gloria Whittington

Cathy Hanna

Anita Khurana


Rachel Humphrey

 

 

 


Click To Read
35th Anniversary Issue

 

     What kind of year was 2010?
     What lies ahead for 2011?
     Here begins our annual survey of the best & brightest in air cargo, in order that they might share their thoughts, hopes and dreams.
     The series continues through January exclusively in FlyingTypers.

Dave Brooks
President
American Airlines Cargo

 New Service! Shanghai to LAX, JFK to Budapest, ORD to Helsinki, JFK to Haneda—all will highlight 2011 at AA Cargo.
     Recapping 2010, 100% screening was successfully implemented.
     Another highlight was a strong, early 2010 rebound from a lousy 2009 in all markets.
     Looking ahead, we will announce new appointment for Europe Sales later this month (January).
     Trish Hollinrake took over as VP Cargo Operations this year; she is a solid operator from the passenger side at AA and is learning the Cargo biz quickly.
     A big challenge in 2011 will be having to deal with continued security knee-jerk reactions to the Yemen shipments, paralyzing foreign mail flow.
     The TSA is working with industry to rationalize in 2011.”
     Hope you’re not expecting any Christmas gifts from cousin Franz in Frankfurt or Aunt Pauline in Paris.
    AA Cargo domestic mail is dying a death by a thousand cuts after a good run. The upside will come from products that truly need air in 2011.
     Pharma is getting a lot of attention, the market needs more passive solutions as the active containers will be too expensive for emerging products.
     High tech will ebb and flow depending on consumer demand and new product introductions.
     Veg/flower guys will always be there if the rate is right.
     And the most neglected, underserved market that we have spent quality time with this year: human remains.
     Great service, fair rates, appreciative customers: what more could you ask?


Stan Wraight
President
Strategic Aircargo Solutions Int'l


If ever there was a chance for the industry to embrace change, 2011 will be it.
     There is a crossroads coming and we will see if the industry really has the leaders it needs in the way they handle the politics of security and safety.
     The knee-jerk reactions that occur, mostly for expediency or political correctness, happen without thinking things through or understanding the consequences.
     If we have an incident again, we know what will happen; it will be a lockdown. Can the industry be pro active for once? That will be the test of management in air cargo in 2011.
     There is only one way for safety and security to be handled globally in a manner that will satisfy all governments and politicians, and that is to create a database that is open and transparent and available to all certified agencies on every shipment handled by air, be it from an integrator or scheduled airline, and detailing every mandatory field that may be required.
     This can only be accomplished through E-Freight, and by making this mandatory for international air cargo we will show the world we can change, and will tackle problems as an industry, not a fractured bunch of ostriches with our heads buried in the sand, hoping someone else will solve our problems.
     Looking back, for our company, Strategic Aviations Solutions, we had a stellar year.
     We are really pleased regarding the reaction of our clients to the approach we have taken, which is in effect a transfer of knowledge and experience versus traditional consultants who are great with data, but very short on experience.
     The new and emerging markets, especially in Russia and the former republics, really stood out in 2010.
     There is a pent up demand for a new way of doing things, for modernization, and a willingness to accept change.
     Our motto in the company is ‘without change the mediocre catch up’ and we believe that.
     Taking the industry view, I think that Des Vertannes moving to IATA was a tremendous loss for Etihad, but a great thing for air cargo worldwide.
     I hope the new Director General takes cargo as seriously as he did in Cathay, and that it becomes a core activity of IATA again.
     What a combination that would make, especially when you see that TIACA and IATA can agree to work hand in hand as they have done.
     TIACA under Michael Steen, although Uli did a superb job, can also make a real difference in moving TIACA away from it's former self into a more aggressive force in the change process.
     I hope Meta Ullings of Martinair and Uli Ogiermann of Cargolux come back soon to their posts; we desperately need them to remain active and involved, true professionals both.
     The biggest challenge to business looking ahead is apathy.
     The heads of airlines and airports don't understand what can hit them if air cargo is not protected against the threats that are out there.
     Cargo contribution is a much larger percentage than many airlines really understand, and is going to be the difference between profit and loss as passenger yields and the consolidation in the industry marches on.
     Places to be in 2011 in terms of trade shows are Air Cargo Africa in Nairobi in February, and Freighters in London for sure.
     In terms of action right now in the air cargo business, mail is actually slowing down and it does not take a rocket scientist to see why: email, text, twitter, Facebook, etc…
     When was the last time you mailed something?
     Express integrators have taken over the small package business and without government subsidies, most mail activities are a loss for governments.
     Airlines have been getting less and less income from mail, but certain carriers still count on it for a lot of revenue, buyer beware.
     I see pharma, especially new technology drugs which require constant temperature control, growing especially in emerging markets.
     Also I believe we could as an industry do more if all airlines developed a true cargo strategy and business plan that would analyze their USP's, and develop a product portfolio that can take the individual strengths they have and build on them.
     There is no cookie cutter solution to success, what is good for one airline in a region or globally may be a complete financial disaster for another.
     If you do your marketing and strategy analysis plus business planning and training correctly, there is money out there for airlines and airports.



Oliver Evans
Chief Cargo Officer
Swiss WorldCargo


Swiss International Airlines is completing one of its best years and is once again the world’s most profitable airlines. For Swiss WorldCargo, this means that we can look forward to benefiting from a continued, measured, but significant growth in 2011 and beyond. New destinations and capacity will be added gradually over the coming years, while remaining clearly focused on the specialized, care-intensive product markets in which we have become a global leader.
     We have secured our position as an autonomous yet integral and closely linked member of the Lufthansa Cargo Group, setting high standards for performance and making a very significant contribution to the profit of the airline and of the cargo group besides our usual financial, quality and customer satisfaction goals.
     We will strive to remain a leading adopter of e-freight, we will continue to lobby with industry bodies and governments to establish sensible, effective and fair regulations for customs and security measures, and use our voice and energy to ensure that the recently announced global air cargo advisory group hits the ground running and helps transform our industry into a revitalized and progressive community. In short, we won’t be bored.
     In terms of 2010, the word recovery says it all. We achieved healthy numbers once again, easily outperforming targets that were naturally conservative as they were set in the still gloomy days of early winter 2009.
     Remember Eyjafjallajokull (a name that deserves immortal recognition): Despite being a nasty experience, it was salutary to have air freight and its vital importance to globalization and world trade brought to the headlines of newspapers and public awareness. Conversely, the industry’s need to constantly upgrade security was highlighted by another incident: the sad effort of some to disrupt the welfare of the many by attempting to plant a bomb in an airplane a few weeks ago. For me, all these events are just confirmation (as if any were required) that this industry still has mountains to climb to deliver consistently reliable quality to our customers at competitive costs. Therefore, a welcome change has been IATA remaining an important voice in the industry and realizing that its voice must be in unison with that of FIATA, TIACA, and the GSF in order to be effective.
     Swiss WorldCargo is a global player and we embrace diversity in our team, whether management of staff. I had a superb team, which included Dieter Vranckx and Bernd Maresch, who thoroughly deserved the new challenges they have taken on, within or outside of our group.
     But I am proud and happy that we had have a smooth transition to an equally superb team, in which diversity is present in all its forms: diversity of culture, of experience and of gender. I am specifically looking forward to Lalin Sabuncuoglu-Janseen, our new managing director Europe, featured in your great ‘Women in Air Cargo’ column. We need new talent, and half the world consists of talented women who deserve their opportunities in top positions. Urs Stulz has therefore been very wise in assembling his new team as Managing Director Central Services, including two bright women, Christine Barden (Senior Manager Processes) and Annette Kreuziger (Senior Manager Marketing) amongst his direct reports. I have the greatest respect for my male colleagues, but they and I will be challenged all the way!!!
     For 2011 our biggest challenge will be ensuring sustainable profitability to fund investments – in people, processes and new aircraft – so that we make full use of new technology, crush costs, reduce the impact of our industry on the environment, and look after this beautiful planet we inhabit for the sake of our children and our childrens’ children.
     In terms of ‘must attend air cargo trade shows’ IATA's world cargo symposium is unmissable, while CNS (for meeting and discussing vital issues with top U.S. customers) and air cargo Europe (for doing the same with European customers) are on our (rather selective) radar.
     Mail is actually a problematic sector (and has been for a while). Integrators bit off a big chunk out of the market, and the air cargo industry has not done itself any favors with some of the outdated processes it has allowed to survive. The latest blow to the mail business are the recent regulations hastily imposed by the TSA, which have hardly been discussed with the industry despite the lessons from the introduction of air cargo security measures.
     We are a disproportionately big player in this market, but I call upon the UPU, our customers and ourselves to speed up the discussion and resolution of all procedural issues hampering this vital sector.
     Pharma also is a hot performer; our challenge will be staying ahead of the game as we face new competition, of both high and low quality.
     However, hottest of all in 2010 was express, and we will invest energy and time in remaining a global industry leader in all our chosen product markets in 2011.


Nalin Rodrigo
COO
MCH Holdings Australia

I am looking forward to being back in the driving seat of a air cargo carrier.
     Recapping 2010, the greatest joy came from helping Air Niugini to re-draw its cargo strategy and the engagement with their board.
     The team was a great bunch to work with who were eager to bring their airline to the world air cargo stage.
     Their dedication from top to bottom was impressive.
     In my current role as COO of MCH Holdings Australia, the second largest Airline GSSA company in Australia, is to build on the teams strengths and to ensure consistent flow of business.
     Australian air freight is heavily influenced by its produce exports. MCH Holdings Group is the GSSA for Delta Airlines Cargo, MASKargo, Vietnam Airlines, Jet Airways, Air Astana and Czech Airlines.
     All segments are doing well; we will focus on the charter business in 2011, both in and out of Australia.”

 

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