Vol. 9 No. 39                                                            WE COVER THE WORLD                                                Tuesday March 23, 2010

EMO Forwards Understanding 

      “It’s been a difficult year and 2010 will not be easy either.
      “Now airlines are raising their rates and customers who got used to cheaper rates are resisting.
      “So we have to be creative.
      “In 2010 we need to demonstrate the strength of the “Group” that today is a growing worldwide logistics resource.
      “Our business last year was about 27% less air freight export than in 2008 or about USD$80 million—so it is no secret that there is work to be done.”
      In Washington, D.C. EMO Trans CEO Jo Frigger spoke as the logistics company kicked off its’ Ninth Annual Global Network Meeting business sessions Monday.
      “We have continued to expand in USA, opening in Cincinnati and Seattle and hired new people to continue to get out to the customer.
      “The change is that medium sized U.S. companies are exporting more than ever.
      “That is our opportunity.
      “We need to look at outbound sales from U.S. as a group as the way to grow our business.
      “EMO is bringing a new computer system online company wide this year and are updating our website.
      “Thankfully the early signs of 2010 point to a stronger performance although as mentioned at the top we need to stick together as a group to deliver a strong cohesive organization with real strength and options to our customers.
      “Stefan Ritter, (left) Managing Director EMO Trans Germany noted that the company has entered into a joint venture, (the third such arrangement in Germany with a company in Nuremburg) a continuation of the company philosophy to seek out and grow with several partners.
      The new company DTC EMO Trans will bring a regional specialist—an important market leader in a highly specialized business region into the EMO fold and in return world exposure will be afforded to DTC.
      DTC was founded in 1946, offering big warehouse and connectivity with several areas of Europe handling more than 85,000 shipments per month including a business with Diehl, a major German multi-based manufacturing company.
      Olen Wood, (right) President of EMO USA spoke of sales, of a key theme for the EMO Group, (and certainly for everyone else as well).
      “The sales team is not the whole company—the whole company is the sales team,” Mr. Wood noted.
      Olen Wood brought forward the philosophy and every day application of sales and marketing to the EMO Group Global Network Meeting.
      “We think our USA sales team is the strongest ever with 22 full time personnel.
      “Management and measurement tools that we employ are key to their success.
      “We get clear numbers monthly including a simple one page report per month for all our people and publish sales and performance rankings that not only help us manage but by comparison also indicate developing markets for our services.
      “EMO Trans USA utilizes various means to track and manage our sales effort—as critical to our business.
      EMO sales effort is in part enhanced by our subscription to Trade IQ (Zepol) Program, a good source of import leads available to anyone from the U.S. Government.
      “Many companies cleanse and market this database but we do this work in-house with the continued result of generating many leads from this data.
      “We also utilize strong customer service.
      “As challenging as our business is we are in a very good place.
      “Sure last year was tough but as compared to some others EMO Trans is quite alright.
      “We are a huge group today and we are challenged to get ourselves on the same page as an aligned team.
      “Our days after this general meeting here will bring even clearer focus that we are an evolving, growing company with great financial resources and a powerful group.
      Eduardo Maldonado of Masterline, the EMO partner in Bolivia noted that his logistics company has expanded operations to include seven countries (Chile, Paraguay, Uruguay, Panama, Colombia and Spain) with an expanding service package including air charter, telecom industry, live animals and serving each market with several transportation professionals.
      “There are simply no shortcuts for hands-on customer service,” Mr. Maldonado insisted.
      “As an on the ground and growing logistics company we are committed in 2010 to cost savings as is everyone these days but we will continue to build our business through developing our team as key to our future.
      “Masterline is a passionate, dedicated company that will develop even more innovations.”
      Oliver Evans, (pictured with Jenni Frigger) MD Swiss World Cargo compared his airline and EMO Trans as companies operating just below the line of the big airlines and forwarders.
      “We both have much in common and as a mid-sized airline we are gratified that you as a multi-national company recognize what we bring to the market.
      “Swiss World Cargo has remained strong and has been endorsed by Lufthansa to continue as an autonomous company building strength to strength.
      “We do however leverage the advantages of belonging while contributing to a larger group. The Swiss Cargo formula is to concentrate on high yield, small shipments.
      “Our strategy that was good in boom times helped us develop even more market share during last year.
      “We are committed to removal of paperwork and more customer care and most importantly being in touch with our business partners to make absolutely certain that we are on the same page and delivering our promises.”
      EMO Global Network Meeting served to include a thoughtful and detailed security focus with new information shared from several key markets.
      Bernhard Stock, EMO Trans Germany spoke of the step change coming in EU beginning late next month (April 29) that will mandate new cargo security rules.
      Mr. Stock noted that there is some trepidation as to how well the new system will work while expressing the hope that all goes well.
      “There is some challenge in that the government in Germany has advised of the rules and our deadlines but has been less specific concerning procedures.
      “Although the transition into a new security culture will take three years, to be designated a known shipper, shippers must sign a new security declaration and be registered by April 29 in order to continue to do business.
      “It’s vital to keep close to the customers, in fact our people are spending many hours on phones and by emails to get the word out and every week we receive new regulations.”
      For more details, Mr. Stock can be reached at security@emo.de"
      Klaus Jager, EMO Trans USA (right) ran the litany of TSA screening procedures options and briefly discussed the impact on the USA cargo business.
      The fact that Gale Rossides, acting TSA administrator, told the House Appropriations Subcommittee on Homeland Security March 5, that TSA would not meet a mandate for 100 percent screening of U.S.-bound cargo onboard aircraft by August 2010, as required by Implementing the Recommendations of the 9/11 Commission Act (Public Law 110-53).
      TSA now says it can meet a mandate to screen 100 percent of air cargo originating domestically by that time but only achieve perhaps 65 percent for screening of air cargo originating internationally by August.
      “We have about 20 countries that account for about 84 percent of the volume coming in.
      “And so those are obviously where we're focusing our attention the most so that we can get the biggest bang for our buck, so to speak, with those countries," Rossides stated.
      "It could be a couple more years... beyond August 2010 that we would have 100 percent compliance with some of those foreign countries," she added.
      “We recognize our responsibility to prepare and be ready and that is our mission no matterwhat other setbacks may occur so EMO Trans will continue to prepare for 100% as announced.
      “EMO Trans will be recognized as a leader in the transformation to total cargo security,” Klaus Jager intoned.
      Wick Campbell, EMO USA delivered a U.S. Customs and Border Protection update for Ocean Freight running the gamut of rules and regulations concerning the 10+2 or security filings including new enforcement initiatives that could wind up as a maximum $10,000 penalty for incorrect, late or no filings.
      “Communication is the key. At EMO the deadline for 10+2 and commercial invoice submission is 72 hours before loading.
      “This window allows us the opportunity to correct errors, gather missed information and assign HTS numbers to meet our obligation to Customs-required 24 hour prior to actual shipment rule.”

     

 

     EMO Trans Global Network Meeting mixes business with a chance to take in the attractions of Washington, D.C.
     Here Jo Frigger, EMO CEO and Karin Frigger are greeted in The National Air & Space Museum by R.E.G Davies, the Curator of Air Transport at the Smithsonian Institution's National Air and Space Museum.


      EMO Trans Global Network Meeting continues with interactive company meetings and networking social events through Thursday.
      Central to that effort are a series of meetings arranged in advance that EMO Trans labels “bilaterals” that match up stakeholders from the various countries around the world.
      So for example in the next 2 days EMO Canada will meet up with EMO Chile, Korea, Northeast USA and so on.
      “Bilaterals are a good way for our offices to get to know one another, get on the same page and develop ideas.
      The schedules are arranged in our Freeport, New York offices by Connie Ash who does much of the set up that makes Global Network work,” Jo Frigger said.
Geoffrey

     Shanghai Hongqiao International Airport concluded its three-year expansion program earlier this month (March 16), putting into service its new passenger terminal and second runway.
     This expansion program, with total investment of RMB11.5 billion, involves construction of a 362,600-sq.m. passenger terminal, a 3,300-meter-long runway and some supporting facilities for cargo, aviation control and fuel supplies.
     The new terminal is capable of handling 30 million passengers per year, twice more than that of the old one (Terminal 1), increasing the airport’s annual capacity to 40 million passengers. The quadrupled capacity will ease up the heavily overloaded terminal 1, which has been serving passengers in numbers double or even triple of its capacity in past years. And in the year 2009, terminal 1 at Hongqiao Airport handled 25 million passengers.
     From March 16, up to 90 percent of airlines at Hongqiao Airport will switch flights to Terminal 2, while the old terminal 1 will serve only Spring Airlines and charter flights to Japan and Korea.
     Passengers at the new terminal will enjoy a smoother experience in transportation at the east traffic center, which includes a subway station at the terminal, bus station and parking lots, also opened on the same day.
     Both the new terminal and the east traffic center are just part of the ongoing Hongqiao Transport Hub.
     With designed daily passenger flow as high as 1.1 million, the 26-sq.km. Hub is “one of the largest comprehensive transport hubs in China and also in the world,” said Mr. Shen Xiaosu, Vice General Director of Shanghai Urban Construction and Communications Commission at a press conference on March 11 in Shanghai.
     This quite complex hub connects not only the new terminal of Hongqiao Airport and five subways (three in government planning), but also two high-speed railways, Shanghai-Beijing and Shanghai-Nanjing.
     Large area of parking lots, bus stops, shopping and dining areas also are part of the Hub.
     Spaces for the controversial maglev station to link the existing line at Shanghai’s other airport, Pudong Airport, are also reserved at the Hub.
     To serve the upcoming Shanghai Expo, “Shanghai-Nanjing high-speed railway will put into use on July 1, 2010,” Mr. Shen said.
     As a program of strategic importance to Shanghai, especially for the west part of the city, Hongqiao Transport Hub is expected to offer better service to visitors during the Expo and also to promote the Yangtze-River Region’s economy integration in the long run.
David

Aeroflot Moscow Goes Sheremetyveo

Aeroflot is ready to hand over its Terminal D for management to Sheremetyevo, which will be running the entire airport until Russian officials are able to select an independent operator, sources say.
AirCargoNews FlyingTypers learned of the compromise between Aeroflot and Sheremetyevo International Airport from officials at the two state-run companies.
The carrier would give the airport a 52.8 percent stake in the operation of Terminal D, also known as Sheremetyevo-3.nInitially, Sheremetyevo would manage the stake, but it could eventually come to own it.
In exchange, Aeroflot could receive shares in Sheremetyevo; no final decisions on the deal have been made.
The boards of both companies will discuss management of the terminal by the end of March.
Spokespeople for Sheremetyevo, Aeroflot and the Transportation Ministry declined comment.
Sheremetyevo now manages the airport's four terminals, and it has been arguing for years with Aeroflot about quality and the way that flights are serviced.
The state had three options for settling the issue, all of which agreed that the airport should have a single operator: Sheremetyevo, Aeroflot or an independent management company.
In February, they began to settle on the third option, and no one has backed off that, the officials at Sheremetyevo and Aeroflot said.
But a tender to select an independent operator will take some time. Boris Rybak, chief of communications for consultant Infomost, said it was unlikely that the selection would be drawn out.
“Someone needs to bring order to the airport, and as long as things keep working under the old system — with Aeroflot servicing its flights and Sheremetyevo handling the rest — the quality will remain low,” he said.
Gordon

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