Vol. 10  No. 27                    WORLD'S MOST LOVED AIR CARGO PUBLICATION SINCE 2001                  Tuesday March 22, 2011

 

How War And Weather
Impact Air Cargo 2011

As people queue to check in at an airline counter at Narita International Airport in Chiba prefecture on March 21, 2011, the airport is crowded with passengers hoping to evacuate from Japan due to the massive earthquake, tsunami and nuclear plant accident that have devastated parts of Japan.

For many transportation stakeholders, what began as a year for building business after the 2010 comeback has now turned into a series of global quicksand pits at various locations, with unimaginable bad news that keeps mounting in 2011.
    So far this year, the world is witness to North Africa entering into international conflict as earthquakes change the landscape in New Zealand and Japan.
    Where logistics will come out in all of this may well be determined by how developed are these essential services.
    How often is an industry challenged with a disaster of the scale currently faced in Japan?
    Right now as you read this, international flights and maritime operations continue at Japan’s major air and sea ports, including both Haneda and Narita, and all ocean gateways are working, excluding those directly damaged by the tsunami.
    But operations at even Nippon’s main airports are being restricted due to limited fuel supply and rolling electrical outages.
    According to one report, intra Asian air cargo rates are moving up while elsewhere that old revenue producing standby, the ‘emergency’ surcharge, is being imposed on ocean freight containers.
    Reportedly some emergency bunker charges are being imposed on all air freight cargo, unless destined for Japan itself.
    In Japan, while increased levels of radiation are being recorded at some airports, U.S. import officials are increasing the scanning levels of inbound containers for radiation.
    Ocean has to take caution when sailing, being careful to steer clear of the Japan radiation zone as the U.S. (for example) has decreed a 50-mile no sail zone as a baseline for ships who do not wish thorough inspection before sailing to within 100 miles of the U.S. coastline.
    We talked to some industry stakeholders fresh from a recent series of air cargo meetings in Nairobi, Istanbul and San Diego to get a sense of what may have changed in light of the recent news and what lies ahead for 2011.
    Dave Brooks, President American Airlines Cargo:
    “Our main near term concern is to support our fantastic employees over there who are working 24/7 to stabilize the operation for our customers while undoubtedly having to deal with the consequences and stress of the earthquake, tsunami and radiation issues on their employees and families.
    “In terms of business short term, volumes are actually running pretty well in both directions, but the future will depend on how quickly infrastructure can be restored and the impact on trade of high yen versus the dollar.
    “The availability of jet fuel may also be an issue.
    “We are trying to keep our customers informed as best as possible.
    “On another subject, the impact that will be felt as the result of the current unrest in Middle East is most probably yet even another new round of security measures coming and new origin embargoes.”
    We asked Mr. Brooks if the current unexpected actions and events around the world had changed his business outlook for 2011.
    He said simply:
    “Well I certainly don’t see any upside at this point.”
    Neel Shah, (left) Senior Vice President and Chief Cargo Officer at Delta Air Lines, noted:
    “The safety and security of Delta employees and customers is the foundation of Delta’s operation and the recent tragic events in Japan are no exception.
    “Richard Anderson, Delta’s Chief Executive Officer, reassured employees that he and other operational leaders are continuing to work with the appropriate officials and experts to make sure we have the facts on a real-time basis to make operational decisions that ensure the safety of our employees and customers."
      Richard {right} said, “We are in regular contact with government and regulatory authorities in Japan and the U.S. to monitor the situation in Japan.
    “We are assured by all of these sources that there is currently no health risk to Delta employees working in Tokyo and Narita or on flights into and out of Japan.
    “Delta has also pledged $1 million in cash and in-kind support to disaster relief efforts in Japan following last week’s devastating earthquake and tsunami.
    “The support is for the American Red Cross, the Japanese Red Cross Society, and SkyWish Asia.
    “The Delta Air Lines Foundation is providing an immediate $250,000 cash donation to the Japanese Red Cross Society to support rescue and recovery efforts.
    “Delta also has committed to match up to 5 million miles against customers’ donations to World Vision Japan through the SkyWish Asia program.
    “Delta customers are encouraged to visit the SkyWish Asia website where they can donate miles to World Vision Japan to help transport relief workers and supplies to Japan.
    “World Vision has worked in Japan for more than two decades.    
    “Japan-based employees are also receiving any needed assistance through the Delta Employee & Retiree Care Fund. U.S.-based employees are donating directly to this fund via payroll deduction.”
    Neel Shah added, “in terms of the Air Freight business, certainly the massive shutdown of industrial production has disrupted it in the short term.
    “I think it is too soon to determine the long term impact, but it’s safe to say we’ll see a lot of different commodities moving in both directions than we have seen previously.
    “However, we believe in the inherent strength of the Japan market and Japanese people.
    “This is a well developed economy that is capable of rebounding from a disaster like this well.
    “We are committed to Japan for the long term.
    “Turning our attention to the Middle East, the impact to Delta has been moderate so far.
    “The primary market that has impacted us is JFK-Cairo.
    “Overall, Delta continues to see rebounding passenger loads on the Atlantic, so our outlook for the region continues to be optimistic.
    “Our outlook for 2011 continues to be positive, although we obviously see some very stringent challenges we have to address in the short-term,” Neel Shah said.
Geoffrey Arend/Flossie

 

Japan Shipping Zapped
By Electric

     The Japanese government has imposed planned electrical outages for 3-5 day time hours in the East Japan area because of damage at the atomic power plants.
     Radioactive substances have been found and some cargo requires inspection at both seaport and airport before moving outbound from the East Japan area.
     These actions are causing operational delays.
     Emergency cargo to damaged areas has priority, whilst normal cargo can expect extended delays.
     Narita Customs is open, but operations are delayed due to reduced staff as trains to the airport are slowed by spotty electric outrages.
     Japan Customs has informed forwarders of reduced weekend and holiday clearance capability.
     Most airlines are accepting bookings, but some airlines have stopped utilizing the NRT line and changed to other methods of transit.
     FT spoke to the Hitachi Transport Narita office, where a spokesman said:
     “Our Narita office operates in the planned electric outage area.
     “We are experiencing delays because the office has electric outages for several hours every day.
     “Weekend & holiday clearance is basically not available, meaning this past Saturday and Sunday we were closed.
     “Yesterday, Monday, March 21, most everything was closed anyway as it is a national holiday in Japan.”
     Looking at Ocean transport for a moment, Tokyo/Yokohama Customsis open, but operations are also delayed due to fewer staff than usual because of trains affected by lack of electricity.
     Ocean going vessel schedules are also impacted at several ports.
     Bookings are not being accepted at Hachinohe Port, Sendai Port, Onahama Port, Hitachinaka Port, and Kashima Port. (North area)
     Schedules for many vessels have been either delayed, changed or cancelled altogether due to radioactive concerns and the other related problems outlined here.
     Reefer container bookings have been suspended due to the electrical problems.
     Over the road transportation, including pick up and delivery to most addresses in northern Japan, remains shut down due to road damage and fuel shortages.
     Consolidation services are also not available for some areas.
Hitoshi Nagai

Global readers are encouraged to click American Red Cross link here and use Amazon payments or credit card in any amount.

 

JFK Air Cargo Meet March 31

     Once upon a time, I used to sit and watch air cargo come and go from John F. Kennedy International Airport. My vantage point was the basement of a small hotel, The Jade East, which was located on a street with the decidedly unromantic name of South Conduit Blvd.
     The Jade East was a “short stay” hotel where people would discreetly park out back and slip in and out of the place 24/7.
     But my friends Paul & Howard Abrams, who owned Jade East and an even smaller place called “The Crown” over on Rockaway Blvd., across the street from the old Eddie Arcaro’s Steak House (named for a jockey who got famous at the nearby Aqueduct Race Track), took pity on a struggling journalist whose eyes were set on the heavens and the cargo area. The Abrams rented us some space and Air Cargo News was born.
     We spent all of our years in the print business thinking about JFK air cargo. Even after spending 23 years in offices inside The Marine Air Terminal at LaGuardia, JFK, our hometown airport came first and foremost, even though we branched out to other gateways.
     Today the memory of the people we knew, from Henry Kluck to John Grofik to Isaac Nijankin (who we still talk to) to George Paetow to Jerry Trimboli to Rudy Auslander (we still hear from Rudy) burns bright and clear of our days and nights, Idlewild to JFK.
     It’s been a long time and maybe too long since we wrote about some air cargo activities at JFK.
     So, first things first.
     Here are some of the people shouldering the Air Cargo Association at JFK today that you should know.
     Top of the list is William “Willie” Mercado (left) of Aer Lingus Cargo, who is President of The JFK based Air Cargo Association. First Vice President is James McCaffrey; British Airways World Cargo Secretary is Rene C. Espinet of Forward Air and Treasurer is James Burnett, Swiss World Cargo (right).
     Among the Directors of this pioneering group of air cargo professionals serving the greatest city on the planet, from what is now generally regarded as one of the worst airports on earth, is Peter DeBenigno, Pace Motor Lines; Dolores Hofman, Queens Air Services Development; Barry Medwed, KLM Cargo and others. Advisors to this group include James Larsen, PANY & NJ (Retired), Robert Arens, RNA Associates and past President Ginger Priolo, a pioneering woman in air cargo.
     You might wonder why this story begins with a shot list of people.
     Simply put, these folks (and some others) are the heart and soul of organized air cargo in New York.
     And although JFK Airport can no longer say that it has an airport hotel that can handle a couple dozen booths and an audience at some meeting sessions, JFK Air Cargo Association folks have moved off-airport to a small community near the big airport called Howard Beach.
     To host its Air Cargo Expo 2011, on March 31st the Air Cargo Association has taken over a big wedding and banquet hall called Russo’s On The Bay, which has space galore, valet parking and an elevator that allows the guest of honor to arrive through the center of the dance floor, if necessary.
     Whether Jeff Pearse, newly named Deputy Director of Aviation of the JFK airport operator, will pop up through the floor to deliver his opening remarks remains to be seen, but our hats are off to Willie Mercado and the air cargo team at ACA that has shepherded this association for the half dozen years since Jim Larsen, who was non-stop ACA President and “Father Superior of the ACA Expo,” packed it in to enjoy a well-deserved retirement.
     Jim is now devoting his life to Annette and the grandkids and doing guided tours of the Hindenburg base at Lakehurst, New Jersey.
     Willie, in his stellar effort for this Air Cargo Association, joins a select group of executives all over the world whose support and active effort makes their local cargo club tick for gateway stakeholders.
     Harald Hagans, Kevin Madden & Robert Kennedy in Atlanta, and Tina Hickler at Frankfurt are some names that come to mind when speaking of invaluable members of a couple of local air cargo clubs.
     But whether in Hong Kong where Dora Kay comes from, or LAX where Ernest Schimmer at 80-something still shows up occasionally, local air cargo clubs the world over can salute the stalwarts who turn up and shoulder responsibilities to keep organized air cargo clubs in business.
     “Our Expo for 2011 is a one-day, morning until late afternoon event that features top industry professionals discussing the dynamics and challenges of regulatory changes and modal impacts,” Willie Mercado said.
     “We have invited panelists for our single morning session that include people like Douglas Brittin, TSA General Manager for Air Cargo, and Bruce Campbell, President, CEO, and Chairman of Forward Air.
     “The exhibition portion of the event features displays of products and services and plenty of time for direct face-to-face interaction and networking with airline, freight forwarder, and other decision-makers in a dedicated and focused environment.
     “JFK Air Cargo EXPO Sponsorship opportunities continue to provide organizations with an attractive and cost-effective way of marketing an organization’s goods, services, and brand image to key air cargo industry decision-makers.
     "The centerpiece of Air Cargo Day will be a grand luncheon, New York City style, featuring keynote speaker Robbie Anderson, President, United Cargo,” Willie Mercado said.
     “Robbie, who is working to pull together the air cargo resources of both UAL and Continental, will share his views on the challenges and opportunities facing both that effort and also the air cargo industry.
     “Everyone is looking forward to hearing from Mr. Anderson who makes one of his first public appearances since attaining his position at the new United Worldwide Cargo.
     A postscript to all of this is that ACA in conducting its event in Howard Beach harkens back to a time when Howard Beach was reportedly the home to some of the gangsters that regularly ripped off JFK Cargo and hatched the infamous Lufthansa Cargo robbery plan in 1978, which was the subject of the movie “Goodfellas.”
     Allegedly, the actual plan was hatched just off JFK’s main runways in a hangout called “The Owl.”
     Well, in 2011, Howard Beach is venue to a trade show to boost air cargo, and “The Owl” has been transformed, from a gang hangout that featured porn videos at the bar for breakfast, into a children’s day care center.
     Unlike some portions of Goodfellas—you simply cannot make this stuff up.
     For further information on ACA Expo 2011 including various costs, sponsorships etc., go to www.jfkaircargo.org
Geoffrey Arend

 

Tell Them Willie Boy Is Here

     Last Wednesday, as we celebrated the gala 250th anniversary of the big St. Patrick’s Day parade held here in New York City, it’s worth recalling that in the 35 plus years that we have been on the beat, Aer Lingus Cargo has only had three sales managers in North America: Bill Birnbach, Pat Phelan, and currently William Mercado.
     Willie follows a grand pattern established by his predecessors to give back quite a bit to the betterment of the air cargo community. That includes not only being up front and among the first in local air cargo clubs, but also being on top in other activities that foster good will and cooperation such as Cargo Network Services (CNS), where Aer Lingus has been a long and constant supporter of a U.S.-based organization with growing global impact.
     From his offices out on Long Island (300 Jericho Quadrangle, Suite 130, Jericho, NY 11753 Tel: 1800-223-7660, Fax: 516-622-4257), Willie shows no signs of slowing down.
     With dedicated cargo capacity on all its aircraft, Aer Lingus offers direct scheduled services between Ireland and important gateways in the U.S. and major cities in the UK and continental Europe.
     Ireland’s flag carrier serves other worldwide destinations in cooperation with IATA partner airlines.
     Worldwide, Aer Lingus Cargo employs a dedicated team of highly-skilled and experienced staff.
     Willie Mercado explains:
     “Our aim is to provide a range of services tailored to the specific needs of each and every one of our customers.
     “Aer Lingus Cargo offers shippers value-added services such as specialized handling, customs clearance, storage, and other customized capabilities.
     “A growing part of Aer Lingus Cargo is the menu of cargo products offered in partnership with specialist companies.
     “In Europe, for example via Gateway Ireland, Aer Lingus Cargo offers small parcel courier services to most airports in the UK and a number of key centers in continental Europe.
     “The result is a level of service that is the measure of any offered by air cargo to most major destinations in Europe and beyond.
     "Aer Lingus Cargo recognizes how e-commerce is revolutionizing the world of transportation and logistics—and how we do business in general.
     "Continuing investment in technology positions Aer Lingus Cargo to take advantage of these fast-moving developments and so enhance our services for our customers."
     We wonder is there really anything to the saying:
     'The Luck of the Irish?'
      William Mercado thinks for a moment and assures:
     “This is a long time professional air cargo organization with a well developed culture for moving freight.
     “As long as luck keeps us Irish, we will be here.”
Geoffrey/Flossie

 

 

Re: Prosperous Bosphorous

Dear Ted & Geoffrey,

     Flying Typers “Prosperous Bosphorus” IATA Cargo Week coverage on March 08th is an awesome piece of reporting.
     I just loved how you put the pieces together.
     Congrats for a job well done !
     May it have been the case that the weather in IST has been the worst for 20+ years (considering the time of the year) because Allah disapproved of so much hot air emanated by one organization, IATA?

Cheers, Jens
Jens-Thomas Rueckert
Manager Training & Projects
LOGAR Günther Hasel e.K.
T.Rueckert@logar.de
http://www.logar.de


RE: Renate From Swingtail To B747-8

Dear Geoffrey,

     Sincere thanks for my article, very much appreciated! 36 years have been a long but wonderful time with Cargolux, and my responsibilities at all times most interesting and enjoyable.
     I shall look forward to reading your newsletter at home.
     With many thanks and good wishes for yourself and your family.

Renate

 

Get On Board Air Cargo News FlyingTypers
For A Free Subscription
Click Here To Subscribe

 

Save The Date—Body Of Proof

     Dana Delany, Joe Rossi, a makeup artist, center, and Geoffrey Arend during the filming of the ABC series “Body of Proof.”
     The weekly television show already being broadcast in Europe (Italy and elsewhere) is slated for its North American premier Tuesday, March 29 at 9:00 pm Eastern on ABC television.

 

If You Missed Any Of The Previous 3 Issues Of FlyingTypers
Click On Image Below To Access

FT031011

FT031711