The Road to Brazil begins in Dubai (pictured), as the place creates headlines, new standards in the air cargo business, and everybody just wants to be there.
     Just ask anybody at Intermodal South America in São Paulo this past month.
     Here, Dener Souza talks about what lies ahead as Emirates SkyCargo turns up the heat on Latin America.
     We sat down with Dener Souza, Emirates SkyCargo Manager South America, to learn more about Emirates’ burgeoning business in the southern hemisphere.
     “Emirates SkyCargo’s footprint in South America dates back to 2005, when we started doing offline sales from Brazil using partner carriers to move cargo to Europe, then into our network.
     “Being creative to create opportunities for our clients has been a trademark for us. The real launch pad, though, was the start of Emirates’ passenger service to São Paulo Guarulhos International Airport in 2007.
     “The demand for the space in the belly-hold indicated that there was a need for more capacity out of Brazil and, with businesses more aware of us and our growing reputation for quality service, we decided to add a freighter service from Viracopos-Campinas International in October 2010. That was the start of a period of rapid growth and in the ensuing months we increased the frequency to three times a week, while we also added capacity out of Brazil through the launch of a linked passenger service from Buenos Aires-Rio de Janeiro to Dubai earlier this year,” said Mr. Souza.

     SkyCargo currently offers the shortest transit time from Brazil to the Middle East, with connections to more than 120 destinations via the Dubai hub. With an import and export belly capacity of almost 1,000 tonnes a week, reliable service, and a variety of product options, SkyCargo is providing a great deal of value to a client’s products and services. And there is more to add on the horizon.
     “The most notable area of growth is the trade between Brazil and the United Arab Emirates, which has registered a 300 percent increase since the introduction of the Emirates SkyCargo service in Brazil and South America. Key commodities moved on our aircraft include hatching eggs, auto parts, machinery, security glass, racing cars, oil, and gas equipment—such as helicopters for off shore operations—fresh fruits and horses.
     “We estimate a growth of more than 20 percent, following the addition of increased freighter frequencies at Viracopos.
     “Emirates SkyCargo has shown unprecedented growth worldwide and there is enormous potential in South America. With that in mind, our customers can expect more capacity and services to be added, opening new possibilities to do business with the Middle East, Europe, Africa, Asia, and Far East.
     “Emirates SkyCargo is recognized for its innovative services and is always ready to support the customer in the search for new ways to do business, improve existing processes, and create tailor-made solutions for unusual consignments,” said Mr. Souza.
     Dener Souza has a colorful history in the air cargo industry, having worked in various positions “over the last 27 years, occupying operational, commercial and strategic positions for Brazilian, American, European and Middle East carriers.” He is most impressed with the spirit of Emirates, which he finds is always striving for something more.
     “Emirates is a relatively young carrier and has achieved many important milestones in a very short space of time.
     “The hundreds of international awards we have received speak for themselves, while I really like the ‘go beyond’ spirit we have.
     “Strong leadership is also integral to the success of the company and I have learned a lot from the senior management. I am really proud to be part of this team!” said Mr. Souza.
     The position of Dubai as a trading hub goes back centuries, a fact of which Dener Souza is well aware, especially as it comes to serving the customer.
     “With Dubai as our hub, it is natural for the customer to recognize the possibilities and benefits it brings in terms of connections and transit time. Due to its geographical position, Dubai has been a trading hub dating back many years.
     “Today, it’s not that much different, but on much grander scale, with the benefits of automation and modernization, such as state-of-the-art airports. “Looking to the future, we already see logistic groups making use of Dubai World Central and the ability to easily transfer cargo from the port to the airport and vice-versa, which will bring new opportunities,” said. Mr. Souza.
     Speaking of opportunities, we wonder where Emirates’ gaze will fall next, in terms of bettering the industry and moving forward.
     “We see e-Freight as an important initiative with many benefits, including cost savings, reliability, speed, efficiency, to name just a few.
     “There is a long way to go until we reach the ideal level of electronic transactions in the air cargo industry, but we are seeing more and more stakeholders adopting the initiative, so it is encouraging to see that industry is moving in the right direction.”
     As for where you will next see Emirates SkyCargo, Dener confides: “Our focus has been on Intermodal due to its importance in the logistic industry, but we also see other events and trade shows as an opportunity to develop our business, such as Colombia’s Flower Show.”
     Smells like a sweet deal to us.
Geoffrey/Flossie

     The forwarding arm of one of the biggest shipping groups in the world is doing its utmost to shed maritime associations and achieve uplift in Asia’s air cargo markets.
     The company’s global airfreight tonnage rose 47 percent year-on-year in 2011, mainly driven by the acquisition of Chinese airfreight forwarder NTS last August. Even so, Damco claims like-for-like airfreight volume growth was “about 5 percent” above the market over the course of the year.
     Apart from the NTS purchase, Remo Eigenmann, (above) Global Head of Airfreight, told us the successes of last year were also down to “winning more and more large customers,” plus increased client retention.
     “The combination of the strength of NTS and Damco's existing global network and client base has given us a very strong operation platform. And we have already now gained a substantial leverage from this,” he said.
     “I think we are now represented with dedicated airfreight offices in more than 10 locations in China—with the major hubs being Beijing and Shanghai.
     “In our North Asia region we have more than 25 dedicated own airfreight offices and we are ranking amongst the top five airfreight forwarders in China and Bangladesh.”
     Damco only really emerged as a global logistics player back in 2009 when the various strands of shipping giant AP Moller-Maersk’s forwarding and shipping assets, which included the original Damco forwarding business and the supply chain assets of Maersk Logistics, were brought together and rebranded as Damco.      The company now boasts more than 10,000 employees, an annual revenue last year of USD$2.8bn, and airfreight export volumes of more than 110,000 tonnes per annum.
     Eigenmann anticipates further growth in the company’s origin air freight services out of Asia in the future, but expects 2012 to be challenging. “We will continue with a focused approach on our key customer segments like chemicals, technology, lifestyle, reefer, and retail.
     “The fact that we are very well represented in growth markets and have great strength in places like China, India, Vietnam, Indonesia, and Africa make us confident that we will continue to win market share to/from these countries. We also expect to see a substantial growth of our business to and from the Middle East.”
     The company has now set up a customer service center in the rising electronic manufacturing center of Chengdu in central China and, as the logistics market spreads inland away from the higher costs of producing on the coast, Damco will open five new offices in western provinces of China during the course of the year.
     “The five new offices will be located in western and central China cities including Wuhan, Xi'an, Zhenzhou, and Ying Chuan,” he said. “And as we continue to expand our airfreight activities in China, we might also set up additional dedicated airfreight offices later when and where necessary.”
     To further boost airfreight growth, Damco also recently launched a dedicated airfreight sales campaign between China and Europe/North America. “The aim is to gain additional market share and also achieve a better balance between our export/import volumes; this will be a top priority over the next 12-18 months.
     “Going forward, Damco plans to again grow volumes at a significantly faster rate than the market in 2012, while also further improving profitability.”
     However, Eigenmann admitted that at present for many in the business, air freight rates were unsustainable on East-West lanes. However, he said Damco’s primary strategy was to reduce the costs and improve the profits of its customers rather than worry about the structural viability of airlines and carriers.
     “Our overall approach, with or without declining rates, is actually to ensure that our customers use airfreight only for the right reasons,” he explained.
     “We actively seek ways to reduce airfreight, helping customers to reduce costs and carbon emissions.
     “I mean, air freight is here to stay, but in dealing with customers, it is essential to take a holistic view on their transportation needs and offer alternative solutions if the customers lead time requirements can be met by other modes of transport. For example, sea-air where it is feasible.
     “This is exactly what we—successfully—have been doing for our biggest customers.”
SkyKing

     In French they say “plus ça change, plus s’est la meme chose” or “the more it changes, the more it’s the same thing.” Apparently not so when it comes to the concentration of power—in this case, political power—to be found in a nation’s capital; the attraction is irresistible, like moths to a flame.
     The Aircargo Club Deutschland (ACD) meets every second Tuesday. On April 17, the gathering hosted what could be a connection with the political power base in Berlin.
     The famous Aircargo Club Deutschland (ACD), founded in 1963 and synonymous with the Frankfurt airport, has grown and developed its stellar reputation proportionally to the top place Frankfurt has earned as Europe’s leading cargo hub. Many big names have left their cumulative patina of expertise and respect.
     Anything and everything air cargo (in particular) and air transport (in general) happened in FRA. It’s been nearly twenty years since the German capital transitioned from Bonn to Berlin. And now out of nowhere, a new organization has sprung to life there – Bundesverband Deutsche Luftwirtschaft, or Federation of Air Transport Economy, with its new president, Hans-Peter Siegloch, a very well-known former German TV anchor and, until recently, the ZDF network’s New York bureau chief (ZDF is one of two main public TV channels). It is rather intriguing, because clearly this is a high profile, well connected, media savvy global professional and expert communicator working with a substantial org-chart of high caliber staff and a top Berlin location.
     The BDL membership—Air Berlin, regionals Augsburg Airways and Cirrus Airways, Condor, Lufthansa, vacation flyer TUIfly, Fraport and the Cologne-Bonn Airport, the Federation of German Airlines, German Airports’ Working Group, German Air Traffic Control and service provider Heinemann—form a group of companies which are not exactly under-represented in the industry that have nevertheless signed up with newcomer BDL. Equally interesting is the fact that with “economy” in its title, the membership so far lacks any of the major or even mid-size companies, manufacturers, or shippers one would expect to see, but indeed, it is in its early days and cargo has just been ‘discovered’. It is often said that if one wants to get down to the bottom of things, follow the money! Where is the substantial funding for this outfit coming from, in what is has become an increasingly pricey Berlin? And what was the compelling necessity or otherwise unfulfilled need that brought about BDL at this time, and why? So far, there are many more questions than answers.
     ACD held its April meeting on the 17th and Herr Siegloch’s keynote address attracted some 90 attendees who were treated to an extremely erudite and polished presentation by the speaker, which covered the entire transportation spectrum, with an almost overabundant amount of data and a top-notch delivery. It is instructive that the cargo club has had the foresight to invite the BDL to speak to its members, although the BDL web site doesn’t even mention cargo anywhere. Herr Siegloch admitted that this opportunity was the first of many steps to make cargo part and parcel of BDL’s portfolio.
     But Berlin is where the seat of power is nowadays, and with the new Berlin Brandenburg airport opening on June 3rd, the hordes of federal bureaucrats are bound fill lots of seats. Because of its former isolation prior to German reunification, Berlin is not an economic center of any sort; therefore it will take a very long time for cargo to become significant, yet it is in all likelihood the political decision-making that warrants lobbying to kick it up a notch.
     As a parallel, Washington, D.C., is a lobbyist’s mecca, with the Air Transport Association, Airforwarders Association, and too many super-lawyers to count, so perhaps Berlin is just catching up. We’ll see.
Ted Braun

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