Vol. 10  No. 44                    THE GLOBAL AIR CARGO PUBLICATION OF RECORD SINCE 2001                               Monday May 9, 2011

     Munich calls and everybody seems to come.
     Namely the members of the global logistics industry that rush to the Bavarian capital to showcase their enterprises, products, services, and strategies to the interested public from May 10-13, at Transport Logistik held every other year. This year is the 13th year for this show.
     Organizer Messe Munich lists 19,000 exhibitors from 59 countries participating in what many in the industry believe is the world’s biggest and presumably most important logistics event.
     And by far the cheapest, since visitors get access for the entire four days of the show by only paying €40 Euros.
     If tickets are booked in advance the admission comes down to €35 Euros.
     It’s an impressive price-value ratio at a time when costs for trade fairs and conferences have increased.
     Exhibitors however, have to dig deeply into their pockets since the square meter prices demanded by Messe Munich for setting up a stand are quite expensive.
     Core topic this time will be the role environmental issues are increasingly playing in the logistics and air freight industry and what the enterprises can actively do to reduce greenhouse gas emissions.
     This is demonstrated right at the show’s kick-off May 10 at 10:15 a.m., when German Transport Minister Peter Ramsauer, (right) a native Bavarian himself, will deliver his views on “how much green the logistics industry can afford” in a high ranking panel which also includes CEO Karl Ulrich Garnadt of Lufthansa Cargo and Ruediger Grube, head of German rail group Deutsche Bahn.
     Before Transport Logistik commenced cabinet minister Raumsauer said in a statement: “All forecasts say that aviation will grow continuously above GDP’s average in the coming years. Considering this fact we have to carefully watch that this progress is in line with ecological needs. The lawmaker is setting the framework but the industry is asked to contribute its part in preventing global warming. Airlines are encouraged to renew their fleets, the faster the better, since modern jets like the Airbus A380 for example burn only three liters of kerosene per passenger on a 100 km flying distance. Whether hesitant or neglectful towards modernization, they’ll have to pay for polluting the atmosphere because starting in January 2012 the aviation sector will be part of the CO2 emission trading scheme set up by the European Union. This step will ultimately have a positive impact on the environment. A third topic, the Single European Sky for reducing unnecessary emissions is top of the list in Brussels. When implemented by the EU twelve percent of green house gases emitted by planes daily into the European air today can be eliminated. All these and some more provisions are inevitable contributions for harmonizing the economy with the ecology."
     An integral part of Munich’s Transport Logistik, Air Cargo Europe will be held for the fifth time. According to Messe Munich’s spokesperson Petra Gagel, 200 companies will be exhibiting. The Air Cargo Europe conferences will focus on the latest security requirements and debate whether the service levels loudly propagated by the air freight industry do in reality meet the requirements of the market. A panel of experts from across the air cargo industry – forwarders, airlines, handlers and general sales agents – will present their views and then discuss the matter further through questions raised by the audience.
     The show closes its doors at 6:00 pm each evening. Expect that after each day has ended, many of the exhibitors and participants will deepen their contacts at the famous Munich Biergartens, enjoying tasty Bavarian pretzels and the famous local beers.
Heiner Siegmund/Sabiha

 

Frank Discussion
Building Cargolux

     If you ask Cargolux CEO Frank Reiman how to handle change in a cargo business of myriad responsibilities, including the seen and the unseen, which have a nasty way of popping up unannounced, his gaze is level and the answer is direct:
     “Meeting objectives is always a work in progress.
     “Still, I am content to say that I have reached those that I had set for myself when I took the reins at Cargolux: conducting an in-depth review of the Company strategy and engaging in successful partnership discussions.
     “We are implementing a long term strategy and finalizing the partnership discussions with Qatar Airways that will enhance the Company’s competitiveness and enable Cargolux to grow in a profitable and sustainable manner.
     “The goal is to strengthen the business performance - both independently and together - through a close cooperation that guarantees high customer satisfaction.
     “All in all, 2011 has been a good year so far.
     “There are two challenges in our vision—one specific to Cargolux and one faced by the aviation industry as a whole.
     “Apart from increasing oil prices, which is causing a headache to the entire sector, we seek to manage our fleet capacity as efficiently as we can in light of the delayed delivery of our new B747-8F aircraft.

     We wonder about fuel as the 800-pound gorilla on the back of business as rising prices get quite a bit of the attention (and revenue) in air cargo today.
     Mr. Reiman has a wrap around solution:
     “At approximately 40 percent of operating cost, fuel is a key cost component of our business.
     “It is therefore critical to manage this important risk with the necessary care.
     “This happens in two ways:
     “There is a fuel surcharge mechanism which does obviously not completely offset rising prices.
     “We also use fuel hedging to tackle the inefficiency left by the fuel surcharge mechanism, i.e. by building a portfolio of financial derivatives on fuel underlyings.
      “The fuel surcharge mechanism combined with fuel hedging is intended to offset adverse fuel price swings.
     “This approach seems to have worked work in a satisfactory manner so far this year.”
      The other hot button issue is security. The ‘TSA Friday Night Massacre’ apparently turned air cargo upside down for a brief spell a couple of months ago.
     “TSA initiatives like those we had in March are not quite what one would consider partnering with the industry.
     “We deem it essential that legislators cooperate closely with the air cargo industry to develop the most appropriate and harmonized processes that strengthen the global cargo supply chain.
     “‘Third country cargo security’ is the big topic in 2011.
     “After that October 2010 printer-bomb plot, the U.S. Transportation Security Administration (TSA) and the European Commission (EC) identified cargo originating from outside the U.S. and the EU as a new threat to civil aviation and the legislators brought forward new security measures, respectively proposals for such measures, air carriers will have to take before uplifting such cargo.
     “Cargolux and other EU carriers have already implemented security measures for these operations (and documented them in their security programs), but they will be burdened with additional responsibilities when carrying cargo from a third country into a European or U.S. airport.
     “Cargolux will press for ‘mutual recognition of aviation security regulations’ to facilitate ‘One-Stop Security’ and the free movement of goods between countries applying equivalent security standards.”
     In terms of markets, Frank Reiman indicates that the best surprise is no surprise saying, “As we expected, growth in Asia is flat – so no surprise here. North and Latin America are putting in a strong performance and Europe is also doing well.”
     As to what lies ahead for Frank Reiman and Cargolux, the bossman lays it on the line:
     “I set myself high objectives when I accepted the CEO role.
     “Four months into the job might be a little premature to take stock of one’s achievements.
     “Notwithstanding this, I am pleased with the progress made as far as the in-depth review of the Cargolux model and the resulting actions as well as the partnership discussions are concerned.
     “I believe that professionals should make commitments, not promises.
     “As the leading global all-cargo carrier, we remain committed to our time-tested value proposition: customer focus, service excellence, quality leadership.
     “We all work hard at Cargolux to meet the ever changing needs of our customers and to stay ahead of the game.
     “This week we are especially glad to be at Air Cargo Europe in Munich, one of the most important events in the air cargo industry calendar and the perfect venue for meeting and networking with customers, getting feedback and exchanging ideas.
     “We are ready to greet our colleagues and share the excitement—that is Cargolux today and tomorrow.”
Geoffrey/Flossie


     When is an air cargo movement as supple and well composed as the opening chords of a Mozart Symphony?
     Well, the Vienna Philharmonic Orchestra discovered first-hand that the fine tuning and rhythm of leisure air cargo is music to shippers around the world after contacting Air Berlin to fly their musicians and instruments to the USA.
     The grand finale of this tale was the soft delivery of artists and their “axes” just in time for a grand USA/ Canada/Mexico/ tour during early 2011.
     Now comes the libretto:
Air Berlin (AB) designated Felix Brockerhoff from leisure Cargo (LC) to plan and accompany the complete shipment from Germany into the USA.
     leisure Cargo has over 20 years of experience in all forms of airfreight transport, thus Air Berlin knew this transport would be in good, reliable hands.
     The special characteristic about this transport was the very high volume and value of the instruments and, of course, the fragility of the freight.
     In the beginning the main objective was to combine the ideas of the transport department from Vienna and the cargo hold of the chartered Airbus 330-200 in Dusseldorf.
     Many months later, in fact only two weeks before last Christmas 2010, leisure Cargo received a final draft of all instruments that needed to be moved.
     Since leisure via Air Berlin is all belly lift, it was quickly realized that space aboard the A330 would be tight—perhaps too close for comfort—and would require some fine tuning.
     But no need to fret!
     Faster than you can say ‘Prestissimo!’ leisure Cargo organized two options with the AB Traffic Center.
First to go from the A330 was the usual flight kit PMC on charter flights (for spare tires and tools). Second, the possibility was explored to load some baggage in the cabin (suitcases with fastened seatbelts!).
     That idea did not fall on deaf ears, but resulted in the instruments being strapped to the seats, which we suppose also made it possible for the boys and girls to strike up the band if flying six miles high moved them to a five part Grand Fugue.
     The documentation had to be done through a forwarder due to regulations for U.S.-bound import freight.
     leisure Cargo worked closely together with Cargo-Partner, so the documentation moved alle breve.
     After detailed discussion with U.S. Customs regarding the transmission and customs clearance requirements at the first stop (Oakland, California), a special permit was approved just two weeks before the planned departure of Vienna Philharmonic from Düsseldorf.
     The permit allowed Customs Clearance in the USA to be conducted just like the invaluable, classic instruments brought to life in performance—the old fashioned way—in paper form, no electronic transmission (AAMS) needed.
     Everything was set up to go, the Vienna Philharmonic would play their last concert in Cologne, Germany on the 22nd of February until 22:00 local, just two hours before midnight.
     Then while the musicians rested, all their instruments would be safely packed in their flight cases and loaded on to trucks for delivery 3 hours later in Düsseldorf.
     The designated warehouse staff from the FDCG and Felix Brockerhoff would await the instruments, together with the head of the Vienna Philharmonic transport department and three representatives from Cargo-Partner.
     Two days before the planned transport was to begin, somebody decided the Vienna Philharmonic needed different instruments to fly to USA, so a new list of instruments bound for the tour was presented to leisure Cargo from Vienna.
     But leisure was ready to play it by ear and remained unfazed by the change, and as it turned out different, smaller flight cases were actually needed for a few less instruments.
     Everyone involved was fit as a fiddle and ready for the big musical move as the day came and went without any complications.
     From the packing and pick-up in Cologne, to the transport to Dusseldorf, where the instruments were all screened and built-up, to the actual loading aboard the AB A332, everything went as smooth and sweet as a Mozart Pastoral.
     Customs clearance in Düsseldorf and Oakland without a snagged string or a blown oboe was followed by the post arrivals unloading, breakdown and transport to the concert hall in the USA. Everything showed up in tip-top shape, and with bells on.
     “leisure Cargo has once again proved that it is a top choice for all kinds of transport,” said Managing Director (and Principal Conductor) Ralf Auslaender.
     “We can move anything from flutes to fruits with any one of our 18 service partners, almost anywhere in the world.
     “Whether it is delicate and valuable instruments for the Vienna Philharmonic or perishable freight, including everything from German white asparagus in season (spargel) to pharma and high value cargo with a very tight critical timespan, we are ready to meet and exceed any expectations.
     “That’s the music here at leisure cargo,” Mr. Auslaender smiled.
     And certainly, for such a feat leisure deserves to toot its own horn!
Geoffrey/Flossie


ATC Has A
Handle On Growth

     ATC Aviation Services was originally founded in Switzerland, but today under the guidance of CEO Ingo Zimmer, Frankfurt-based ATC is active all over Europe and beyond, having expanded services in India and South Africa.
     After two decades Ingo Zimmer still gets a kick out of the cargo business. He quietly and competently goes about the GSSA business of building a growing airline portfolio, which includes top rate carriers, through a combination of great service and hands on 24/7 attention.
     As we spoke to Ingo, we imagined he might have been a master chef.
     He knows the first lesson of any good cook is to refine your recipe, keep one eye on the pot and always be on the look out for another new taste sensation.
     In that regard, while ATC has grown in stature and client base, Ingo is always looking to streamline the value added process whilst looking out for possibilities of expanding the ATC brand through acquisitions and other means.
     Despite his years of experience, Ingo remains eternally optimistic and quietly determined to make the most of his lifelong air cargo career.
     There is a certain infectious enthusiasm and earnest attitude that Ingo carries with him everyday that is quite unlike the attitude often given by some top executives.
     Ingo is down on the ground, engaged and actively wanting to know all about what is going on over, under, around and through the ATC company.
     He is refreshing and as a very hands on guy, always a good story.
     “I am travelling to Munich because this is the best exhibition for airfreight executives.
     “I can meet the majority of my customers and also many potential new clients.
     “The formula is simple:
     “Air Cargo Europe as a successful, well-attended event has much to do with the Transport and Logistik Fair which takes place at the same time.
     “The event always works for us.
     “At Munich this week we can get right down to the business of reaching toward our top priority for the recent, and coming year—to grow our network.
     “We have started this year by buying a company in South Africa and another one in Denmark.
     “We are definitely going to open in 2011 in the US and in South America and we want to expand in Europe as well.
     “At the same time, we have rebranded the ATC Group of company members into ATC Aviation Services – Air Support in Holland and Belgium as well as AMS in France.
     “As far as business in 2011 is concerned, you will hear no complaints from me.
     “The tonnage and turnover for ATC Group are very good.
     “For example, in Germany we broke a company record and set a new one this past January 2011.
     “In fact ATC enjoyed our best month in 22 years during a time period normally known as ‘lean and mean for business.’
     “Of course there are always challenges.
     “While we are on track with meeting our stated our goals and it is an exiting year with many new projects, ATC is also meeting our budget.
     “But that does not allow for any of us myself or the team, to be complacent or take anything for granted.
     “It is said that if extra costs related to fuel exceed a certain number, some cargo will be shifted from airfreight to other mode of transportation.
     “So we watch while preparing our strategy for any scenario whilst moving ahead.
     “Worth noting is that to date we have experienced little to no drop off in business connected to fuel.
     “In fact ATC is announcing some new European handling contracts beginning just this month as from May 2011.
     “One is with the Tampa /Avianca Group covering Europe with the exception of Spain and UK.
     “ATC is also proud to announce our agreement with the new carrier Africa West for Benelux/Austria/Switzerland and Spain.
     “It’s all kind of heady stuff for us because we have built this company up from one that began by just covering the small market of Switzerland.
     “Today ATC Aviation is one of the leading Cargo GSSAs operating globally and represents some of the best airlines in the world.
     “Our formula is no secret either.
     “Every year, just like in 2011, the goal at ATC is to increase the yields and that is exactly what we are able to do to most of the destinations served by us.”
     Although Ingo Zimmer seems to have everything in order, he admits that there is one area he will never get tired of uncovering.
     “We still have to explore more new markets together with our freighter airline partners,” Ingo Zimmer said.
Geoffrey Arend/Flossie


Up Front & Personal
Another First From FlyingTypers—Now In HD

 

Ram Menen DSVP Emirates Sky Cargo:
     “Transport Logistik Munich has really grown to be one of the best shows in the cargo industry and has always been very good for us to, not only promote our services, but actually do business. We also get a chance to interact with our customers and partners and look at new business opportunities.
     The Emirates SkyCargo exhibition stand is a double-decker stand of 188sqms and is built over 96 hours.
The stand featured the following elements: four private meeting rooms; a kitchen and serving area; two reception areas; informal meeting areas; an overhead hanging banner; two internet pods, two touch screens containing informational content about Emirates SkyCargo; 16 plasmas screens throughout the stand showing footage specifically created for Emirates SkyCargo and four additional plasma screens featuring an animated route map and an “All About Emirates” corporate DVD.

Robbie Anderson, President United Cargo
     "For United Cargo, Air Cargo Europe (Transport Logistic) is the Super Bowl of tradeshows.
     We have been committed to the show for many years and recognize that our key customers are there in force.
     This year we sense a buzz in the air.
     A little more excitement to catch up with friends and discuss the progress of the new United Cargo.
     We will participate with a broad range of sales managers and executives at our large stand, just inside Hall A4.
     Moreover, we will be talking about our robust schedule of 11 widebodies per day into Germany, new 757 service Newark-Stuttgart beginning June 9, and the latest news on newly-integrated cargo products and services."

Stephan Blank, General Manager Air Freight Germany, WorldNet Logistics:
"The exhibition is THE place to foster additional business. Being there, existing contacts can be renewed and deepened, which I believe is a key motive for many of the participants. This accounts for me as well. The conference program doesn’t really thrill me since I see no indication that substantial news for our industry will be delivered by the panelists. My
feeling is that most things standing on Munich’s agenda have been said many times before on many occasions at many places. So I’ll skip the entire conference and concentrate instead on bilateral biz talks."

Tom Hoang, Regional Director, Cargo Marketing, Boeing Commercial Airplanes:
"Germany celebrates an important anniversary in air cargo with the commemoration of 100 years since the transport of the newspaper Rund um Berlin in August 1911, and Germany will continue to build on this history
as an important air cargo market in the future. This will surely be displayed in Munich. World air cargo is 17 months into the recovery that started in November 2009. Switzerland-based Airports Council International(ACI) preliminary 2010 results show total world air cargo grew by 15.2 percent, as compared to 2009. The recovery was led by Asia-Pacific and Europe growing 18.6 percent and 17.0 percent respectively. Frankfurt Airport leads the way in the recovery for Europe with growth of 20.5 percent, year-over-year. The airport has increased its importance to global air cargo, becoming the seventh largest cargo airport in the world, and helping to confirm Germany's importance in the world air cargo industry."

Tobias Jaeschke, Head of Sales Germany, AF-KLM-Martinair Cargo:
"As SkyTeam Cargo, we have a mutual stand at Air Cargo Europe enabling participants and visitors convenient encounters with leading reps of our different member airlines ‘under one roof’ so to speak. A major aim of Air
France-KLM Cargo is to promote the integration of Martinair and make customers aware of the wide ranging service specter for their shipments offered by our combined group.

Volker Dunkake, Head of Global Sales and Service, Lufthansa Cargo CharterAgency:
"Transport Logistic is the event of the year. There, almost all decision makers of our global industry gather, flanked by most members of the supply chain from forwarders, operators, ground handling agents, to airport representatives. The exhibition is the place to be and a must for me and my enterprise."

 

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


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

FT050211

FT050611