Vol. 11 No. 30                            #INTHEAIREVERYWHERE                              Thursday April 4, 2013



air cargo news March 29, 2013

roclaiming itself as the “second largest exhibition in the world for logistics, cargo transport, and international trade, with 65 percent of our 45,000 qualified visitors as cargo shippers in search of new solutions, best practices, and networking for the industry’s key players,” the 19th Annual Intermodal Latin America took off this week in Sao Paulo (April 2-4).
      Booming Brazil once again hosts one of the world’s most important transportation shows that nobody seems to know that much about.
      Although the lure of Latin America business is proving to be a powerful magnet in 2013, to look at it, much more media attention and ink (if anybody is printing anymore) is spent by air cargo at trade shows elsewhere.
      In Sao Paulo this week a diverse and important group of transportation professionals are ready, willing, and able to engage in all that Intermodal 2013 can deliver.
      Interestingly, in addition to the usual hemisphere entrants, on the air cargo carrier side Emirates SkyCargo has been noticeable and bigger in attendance with its dominator trade show display stand.
      In fact, Emirates has attended this event for the past several years, predating their service to the continent—first with freighters and later with combination services.
      Sky Cargo is now listed as amongst the top three air cargo resources on the planet.
      Big news out of Latin America at Intermodal Sao Paulo Day One is code–share between LAN Peru and Japan Airlines expected to be ratified by both governments for end of April launch.
      “Codeshare Lima to Tokyo via U.S (Los Angeles and New York) ,strengthens our network as LAN Peru as well as LATAM Airlines Group by offering daily flight to Tokyo from Lima ,” Nicolas Goldstein, LAN Peru’s General Manager told FT.
      “We have taken part in and supported Intermodal South America for 18 years, because we believe in the great power of the event. Intermodal manages to show off the potential and capability of Brazil very well," Euzébio Angelotti Neto, Cargo Director, TAM Cargo told FT.
Geoffrey/Flossie

(Lisbon Exclusive)We attended the Annual General Meeting of EMO Trans in Lisbon, which occurred hot on the heels of IATA WCS in Doha. IATA WCS was full of big thoughts and sky-high sessions and speeches, but speaking with busy Joachim (Jo) Frigger, CEO, EMO, what is most compelling is the direct hands-on attitude.
     In the interest of eliciting a short answer whilst also leaving some oxygen in the room for others, we ask Jo:
     Given two minutes to speak to people in transportation what would you tell them about EMO Trans?
     Jo, who is certainly among an elite group of very successful business leaders in air cargo today, says it plainly.
     “I don’t need two minutes for that,” he asserts.
     “Emo Trans is a privately-held, midsize, financially strong, independent, service-oriented freight forwarder with an extensive global network run by professionals.
     “Our priorities for 2013 are for further consolidation of the group and planning for more growth. ”


     “The year 2012 was not as strong as 2011, but still a very good year for EMO Trans; we opened new offices in the USA and abroad.
     “In terms of global markets, Europe is still high on our agenda as is Asia and Latin America.
     “Africa is undervalued, offers many opportunities, and needs more attention.”


     “My fundamental approach has not changed; success is in the uncompromising service provided to our customer.
     “The changes in our business have been the rapid development of IT and communication tools for better productivity and customer service.
     “But there are still a lot of people who do not understand the true role of the freight forwarder.
     “We are the important link between shipper, consignee, and the carriers.
     “The partnership with carriers is just as important as the partnership with our customers.
     “Our strength lies in the accurate evaluation of the needs and capabilities of all parties.
     “Everyone needs to run a profitable business.
     “The freight forwarder’s role has changed over the years in as much as today we are more involved in providing information to our customers about the location and inventory of their cargo.
     “Freight forwarding is essentially a non-asset operating business and we are evolving more into asset driven operations.”


     Aside from delivering news on EMO, Jo has a few words for those interested in pursuing a freight forwarding career.
     “I would encourage anyone who wants to understand the workings of global trade to enter a career in international logistics either on the freight forwarder or carrier side, and not only for air transportation.
     “To me, the most exciting part of this business has always been to be involved in all facets of the global market and transportation.
     “You get around in the world and meet a lot of interesting people that way. “Unfortunately our own industry does not promote this enough to attract young people to join our profession.”


     Jo Frigger says he attends air cargo industry trade shows and other events “with limitations.”
     “I think a lot of them are a waste of time.
     “We are present at the Munich and Shanghai Transportation exhibitions, CNS, AFA events, and a few others.
     “These shows are always interesting because we meet new people and familiarize ourselves with the newest technology.
     “I’m not sure what should be eliminated at these events,” he smiles.
     “Maybe the long boring speeches, but certainly not the after hours get-togethers, where people bond with each other.”


     This year as EMO conducted its AGM in Lisbon, Mr. Frigger lets it be known that the event’s location sends a message:
     “We believe in the European market.
     “Portugal is one of the troubled countries in Europe, but I believe that there is still a lot of business here.
     “In point of fact the Portuguese as well as the other European people will move forward despite present difficulties. Europe is more than an economical alliance with the present financial problems.
     “Today’s Europe is a beautiful place with more than 500 million consumers who can travel from Narvik to Sicily and from Lisbon to Gdansk without showing a passport.
     “I am old enough to remember when we were shooting at each other.
     “Thankfully, today we have peace and can focus on more pleasant matters.”
     “Our boat cruise across beautiful Lisbon Harbor and the Taugus River departs at 7:00,” Jo Frigger smiles.
Geoffrey/Sabiha



ome years back, Delta Air Lines Cargo and the seafood business began a relationship that has been gaining global supply-chain momentum whilst working to build new product markets.
We caught up with “Captain Ray” Curtis Delta’s Vice President Cargo Sales recently and he told us that, dating back to his earliest days in air cargo, he has been hooked on a feeling that the seafood industry would develop into a major business. Of course, that is exactly what has happened.
     It’s funny but when we think of Boston Seafood, we always recall “Captain Ray” was there the first time we visited the event more than 20 years ago.



     “Delta Cargo is of course well-known throughout the industry as a major shipper of perishables such as fresh and frozen seafood around the world.
     “The annual Boston Seafood Show is a prime opportunity for us to meet face-to-face with our customers from around the industry.
     “The show provides an unequalled venue to promote our worldwide network and global reach, which is expanded even further by our North American joint venture partners Air France, KLM, and Alitalia.


     “Shipping perishables such as seafood is major business for Delta, and we have a special focus this year to grow our high-value product lines, like perishables.
     “The seafood market has been in continuous expansion recently.
     “During the past three years we have seen noticeable growth in seafood shipments from the U.S. to Asia and from Latin America into the U.S.
     “This year (2013) is an even more exciting one as we will now be able to offer widebody lift to the U.S. West coast for perishables out of New York-JFK.
     “On March 30, we introduced Boeing 767 service between JFK and Los Angeles.
     “So now everything can fly, from tuna to you-name-it, as customers are enabled to send shipper-loaded units, which are preferred in the seafood market.”


     “We have defined clear operational procedures for our teams that outline the handling of seafood and other perishable items.
     “Shipments are accepted and set to ride as booked.
     “Delta assigns perishables a higher boarding priority because of the nature of the product.
     “If the shipment doesn’t ride as booked for any reason, we bring it back to the warehouse for storage in coolers whenever possible, depending on the city, or we hold it in the warehouse protected from the elements until it is able to ride on the next available flight.”


     “This was our 25th year of participation in the Boston Seafood Show.
     “We greeted more than 19,000 visitors from 100 countries.
     “Attendees include seafood buyers, sellers, and logistics forwarders.
     “We are fortunate to have account manager Christine Waggett on the team, who has been with Delta Cargo Sales in Boston for more than 25 years and at the show every year.
     “She and our operational staff, led by our manager of Cargo Operations, Tom Perrotta, are dedicated to ensuring that we offer a consistent level of service and operational excellence out of Boston.
     “The show allows us to promote our markets and service.
     “Most of the actual business is booked after the fact.
     “Customers establish a Delta Cargo point of contact during the show, and we follow up with calls and create the relationship to help them book and ship.
     “After customers attend the show, they leave with a better knowledge of how we move perishable shipments.
     “We can also introduce them to our dedicated website, deltacargo.com, and familiarize them with our Customer Service Center.
     “This year Delta delivered ‘More Cargo to More of the World’ was our message in Boston.
     “It was a great place to be,” Captain Ray assures.
Geoffrey/Flossie


Ram Menen
Senior Vice President
Emirates SkyCargo

Michael Webber
Webber Air Cargo
Airport Consulting


FreightWatch International’s (FWI) 2012 US Cargo Theft Report said that the U.S. pharmaceutical industry suffered 30 major cargo thefts during the year, with an average loss of $168,219.
     In 2011, the average loss was more than $555,500 and in 2010 losses averaged $3.7 million per incident.
U.S. Pharma has steadily been ramping up security since the 2009 burglary of an Eli Lilly warehouse in Enfield, Mass., resulted in $70 million, or a tractor trailer load of cardiovascular and depression medications, being stolen by two Miami-based brothers (one an alarm installer). They were later nabbed via DNA samples retrieved from a coffee cup left in the Lilly cafeteria where the pair apparently took a break during the heist.
     Jamming Cargo-FreightWatch International (part of United Technologies, which installs cargo tracking devices) said that a truck full of consumer electronics was hijacked in Tlalnepantla, in the State of Mexico, just outside of Mexico City last month, with thieves utilizing a cellular signal jammer placed in the rear seat of the passenger cabin of the truck, to interfere with onboard trackers.
     But a backup tracker saved the day.
     “This is the first confirmed use of jammers in Mexico, although the technique has been used in Brazil, South Africa, and parts of Europe for several years with limited results,” FreightWatch said.

Transported Asset Protection Association (TAPA) reports a significant increase in Europe of truck theft incidents in which thieves utilize high-tech jamming devices to block the electronic signal of keys as a driver attempts to lock down his vehicle.
     The remote manipulation occurs utilizing a device easily purchased via the Internet at a cost of less than 100USD, which “prevents the vehicle from locking down, and it happens completely unnoticed by the driver,” TAPA said.
     Once inside, the thieves access the computer system and, using a second electronic device (also available on the internet), reprogram a blank key to start the vehicle, all in a matter of minutes.
     Separately, The London Daily Telegraph reported that more than 1,000 high-performance cars across the UK were stolen using this method in the past year.

After reports that cargo terminals at major Indian airports could be attacked by terrorists amidst increasing cargo and baggage theft, operations at eight major subcontinent airports (including Delhi and Mumbai, which were being guarded by Airport Authority of India (AAI)) are now under supervision of India’s Central Industrial Security Force (CISF).

UN sanctions set to go in effect against the Democratic People’s Republic of Korea include inspections of air & sea cargo on the way to or from North Korea, with proviso that if the crew of a ship or aircraft rejects a request for inspection, the UN member-state can bar any further company movements altogether. The resolution drafted by the U.S. and Chinese delegations provides for toughening sanctions against North Korea in retaliation for the nuclear test that Pyongyang conducted in February.


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RE: Russians To Unload Moscow Cargo

Geoffrey,

     I guess Sergei Shklanik summed it up best: no one is leaving Moscow for a long time to come. There is ample space in the three existing airports that serve the Moscow region—Domodedovo (DME), Sheremetyevo (SVO), and Vnukovo (VKO), with existing facilities or land to build new ones. The huge capacity available with the lower deck networks of major airlines such as Aeroflot, Transaero, plus the numerous foreign carriers who serve Moscow with large wide body capacity such as Emirates, Vietnam Airlines, BA, and many, many more make such a move unnecessary.
      So called "experts" have been pushing this idea for years in Russia, but you just have to look at the failed "Aerotropolis" concepts of late, and the changing dynamics of air cargo towards passenger bellies, to realize it would never work.
Stan
Stan Wraight
Executive Director
Strategic Aviation Solutions International
www.sasi.com.hk


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