Vol. 12 No. 55                          THE GLOBAL AIR CARGO PUBLICATION OF RECORD                          Monday June 17, 2013


air cargo news May 16, 2013

     The Paris Air Show opens today, June 17 with an attraction for the ages, as The French Air and Space Museum located in the historical buildings of the former Le Bourget Airport unveils the restored “Salle des Huit Colonnes” (“Hall of the Eight Pillars”) the art deco masterpiece at the spectacular heart of the 1930's passenger building here.
     So take a break from The A350XWB and drink in a place beyond compare, matched only by our Marine Air Terminal at LaGuardia Field in New York City.
     Hall of the Eight Pillars admission is free all this week.
     “à couper le soufflé!”
Geoffrey

 

n terms of passenger boarding, Charlotte is the 8th busiest U.S. airport and the 2010 recipient of the IATA Eagle Award. As a US Airways hub it serves 26 international destinations and boasts “ultra low” boarding costs according to Jerry Orr, (left) airport aviation director since 1989. The airport currently provides 14 international gates; a new international terminal featuring 25-plus gates, and new parking facilities are under construction.
     Mr. Orr pointed out: “Airport operations don’t cost the taxpayer one penny." The airport is financially self-sufficient.
     But there are issues—Jerry Orr is retiring and some people fret that no one could possibly fill his shoes.      The airport is managed by the city. North Carolina has a Republican governor and a Democrat mayor. The state general assembly has been pushing to establish a new airport authority to run the airport, which the senate has passed, and the bill is on the table of the North Carolina house. Who will sit on the board of the new authority is a contentious matter—majority city representation or not, which counties would have a greater say? It's politics as usual, one might say, except that if it ends in a law suit to thwart the formation of the airport authority, all sides lose—especially businesses that depend on efficient airport services.
     The recent AA/US merger agreement raises many questions regarding the future of Charlotte Douglas International. US Airways has resisted efforts to takes sides in the airport authority debate, yet it goes without saying that being located between JFK and MIA, the airport' future could go either way—see growth materialize, or not.
     In a recent Charlotte Chamber of Commerce economic development briefing, Jerry Orr emphasized the intermodal opportunities, with a public/private partnership with Norfolk Southern due to open in 2014. In response to a question, Jerry summarized his views on air cargo: “[air cargo]… is not a low cost prospect right now and inventories are not low.” That seems to translate into having essentially written off air cargo one way or the other—whether conceding the business to ATL (flight distance of about an hour from Charlotte ) or putting all the eggs in one basket and investing solely in passenger services expansion. Whether that turns out to have been a safe bet and/or a sustainable strategy long term remains to be seen.
     FlyingTypers spoke to some participants at the Chamber meeting who regularly truck air cargo shipments of high value to ATL because CLT is underserved; how many other shippers would rather see CLT offering suitable air cargo connections? In his presentation, Mr. Orr listed Asia-Pacific and Latin America as the areas driving the most growth; what IATA and the CSCMP have been saying is that “development of trade with Africa is key.” Asked by FlyingTypers about focus on opportunities in Africa, Jerry responded that “yes, we will also be looking at Africa.”
     CLT has no air cargo association and no designated air cargo business development resource, which usually serves as a conducive platform for attracting and growing the business while bringing together all the participants in the supply chain.
Ted Braun/Flossie


alk about swimming upstream.
While almost every person you talk to these days speaks in shorthand, here comes Calogi’s Patrick Murray, and he’s not mincing any words.
“Business is booming for Calogi.
“We now have 13 agents across Asia, South America, North America, and Europe.
     “Our subscribing companies have increased by 25 percent, our users by 17 percent, and our transactions by 31 percent.
     “A survey of our customers showed positive results, with the responses about Calogi’s quality and features coming back either very good or excellent.
     “To build on this trend, we continue to look for new business opportunities.
     “In order to build industry awareness, we will run several Global Campaigns, which highlight specific product information and how our platform helps air cargo supply chain stakeholders move to an automated environment.”


     “During Air Cargo Europe in Munich, I participated on the panel ‘Getting the Message’ that asked ‘In an age of rapidly evolving information and communications technology influencing supply-chains, business models, and society, what is air cargo doing to get with the program?’”
     “Frankly, I believe we really need to do more.
     “For example, the smartphone has made a world of difference to almost every other industry, yet has had little impact to the way the air cargo supply chain conducts its business.
     “The emerging generation of consumers have short attention spans and expect to do business 24/7, from wherever they are. Their only interests will be the price and when the consignee can expect the goods.
     “I believe that in the not too distant future this industry will need a smartphone air cargo portal to do business.
     “Additionally, we must examine our trading model.
     “Shipments will need to travel without the massive amounts of accompanying data and documents that are currently required.”


     “A few people I have spoken to recently believe Calogi’s features can only work in Dubai—which is not true.
     “Our clearing house currently allows 660+ forwarders to conduct risk-free business with over 100 airlines in Dubai.
     “Many of these agents are small and are not members of IATA.
     “We settle over US$10 million per month in airline dues and give the forwarder flexible credit up to six months at an interest rate lower then the bank.
     “We make money and the forwarder has cash flow.
     “This type of arrangement has the potential to work for the global freight forwarding community if the right organizations are involved.”


     “Our newest solution, c-Road, allows road feeder service (RFS) operators to manage transportation of both originating and in-transit shipments electronically and the online management of road feeder services between airline, handling agent, and RFS operator.
     “c-Road gives RFS operators complete visibility of shipments allocated to them through a standard interface with the ground handling system.
     “Operators can publish schedules, manage capacity and volume, produce load plans, and send booking lists to cargo terminal operators with access to several management information statistics.
     “The solution also provides operators with comprehensive information on volumes handled by customer and origin or destination as well as payments and discounts offered by the handling company.
     “With several RFS operators offering airport-to-airport services throughout the region, we are confident c-Road will be well received.”


     “For express operators, we’ve launched ‘printing @ terminal.’
     “In the past integrators have processed courier shipments tendered to commercial airlines using paper-based processes.
     “Airlines, for example, were distributing rate sheets to agents and cargo terminals alike, the cargo terminals were re-keying courier shipment data, and invoices for GHA charges were being raised manually; this adds up to a considerable amount of time and effort for all parties.
     “The Calogi courier solution essentially makes paper documents obsolete and removes the need to rekey the data. Furthermore when executing the air waybill at the terminal the document prints in the express and mail manifesting department, if required by the airline.
     “With Calogi, airlines have the ability to turn this feature on or off by route, in line with prevailing documentation requirements at the destination.”


     “In the last few months we implemented a new version of the e-AWB, enhancements to our booking engine, and improvements to the house waybill, c-Epro, solution.
     “Our ‘right first time’ program involves very strict measures in place that result in quality products and code.
     “Looking ahead, Calogi is in development for quite a few new modules, but we’re keeping these under wraps until they are ready for launch.
     “However, it is no secret that we do want to support the electronic consignment security declaration and are working with potential customers to implement the same.
     “By sharing security data with the GHA prior to arriving at the terminal with the goods, checks on the data can be done earlier and the waiting time for the forwarder can be greatly reduced.
     “If you put this together with automatic handling terminal invoice printing, terminal dock booking, and delivery order printing by the forwarder, it means considerable improvements to productivity for the forwarder and the handler.
     “This gives the customer what he wants—better service and less waiting time.
Geoffrey/Flossie



 

     A Dixon California outfit named Logistic Gliders has developed an entirely new approach to moving air cargo by harnessing low-cost UAV electronics and novel manufacturing methods.
     Recently the LG-1000, the first air-launched, disposable cargo glider capable of carrying 1,000 lbs. of supplies over 70 nautical miles successfully flew above the desert here.
     In operation the packed glider is carried aboard a host aircraft folded up.
     When released at 24,000 feet, the wings extend, GPS guides the glide and at 500 feet from landing, a parachute allows soft landing.
     Military application taking the human element out of danger in war zones is the immediate application seen here.
     At one point during the Afghanistan War 27,000 soldiers at 43 Forward Operating Bases (FOBs) relied solely on airdrops for everything from food to fuel.
     Improvised Explosive Devices (IEDs) and the remote locations of these FOBs made ground resupply all but impossible.
     So will military supply chains of the future no longer need cargo aircraft flying over or near an area to deliver supplies ?
     Stay Tuned . . .
To view video click here or on image above.
Geoffrey




     Etihad Airways opened Belgrade service into Nikola Tesla Airport flights daily from Abu Dhabi carrying the JU code of Serbian national carrier, JatAirways.
     Cooperation between Etihad Airways and JatAirways continues to grow and the two airlines will (subject to government and regulatory approval) add their code to more than 40 destinations across each other’s networks.
     Meantime Air France-KLM-Martinair Cargo
Already with A330 service between Amsterdam and Abu Dhabi added two 747 full freighter frequencies last Friday operating day 5 and day 7 as an intermediate stop on the India and Asia routes.
     “The routings expands cooperation with Etihad offering new possibilities to countries such as Australia, India and more access options to existing destinations,” AF-KL-MP said.


 


he skies are opening up—literally—and the Indian port city of Vishakapatnam (or Vizag as it is well known) will be one of the biggest beneficiaries. The opening of the skies follows a landmark decision recently taken by the military and civil authorities, which decided to implement the Flexible Use of Airspace (FUA). At the moment, the military controls close to two-thirds of the air space, with the rest free for civil operations. But as aviation has grown, there has been plenty of give-and-take, albeit with some reluctance on the part of the military authorities.      This institutional arrangement is a real step forward to free airspace for comprehensive use by all parties concerned.
     Though the FUA will take some time to be implemented, at Vizag, the Indian Navy controls the airport and recently announced that it would allow 24-hour operations for civil carriers three days a week. The airport’s civil operations are limited in a time frame that spans from 6 AM to 11 PM. This poses an obstacle for international and cargo operations.
     The news has opened doors for international operators. While the city has flights to Singapore and Dubai, others like Mihin Lanka from Sri Lanka have expressed their desire to start flights from the city. According to airport sources, queries from Air Arabia and Fly Dubai had also been received.
     Passenger traffic apart, the start of the 24-hour operation has energized air cargo stakeholders. At a recent roundtable organized by the Vizagapatam Chamber of Commerce and Industry (VCCI), in association with the Confederation of Indian Industry (CII) and the Air Travellers’ Association, local trade and industry sources pointed out that the Airports Authority of India (AAI incidentally manages the civil operations at the airport), the Indian Navy, and Government departments like the Drug Controllers and Customs would have to become pro-active to facilitate exports from the airport.
     International connectivity has, meanwhile, thrown up opportunities for fish exports. Tuna from the port city has found takers in Japan and Thailand but the lack of international connectivity has hampered exports.      In fact, when the Singapore Silk Air flight recently carried the first consignment of 100 kg of yellowfin tuna for Japan, fish exporters were ecstatic. No longer would those engaged in the tuna trade have to send their catches to Chennai or Kochi by road. To top it all, the catches would now bring in a 100 percent hike in revenues.
     The tuna fishing season starts from October and ends in March. The peak season is the three months: December to February. During the six months, each trawler on average can bring in 60 tonnes of tuna. While Kochi and Chennai paid a mere Rs 120-130 ($2.50) per kg of 'A' grade tuna, the same fish could fetch up to Rs 500 ($10) per kg.
     In fact, the local branch of the Association of Indian Fishery Industries (AIFI) has chalked out plans to send out tuna to Singapore and Japan in the next season. According to the association, if tuna could reach international destination by the fifth or sixth day after its catch, it would be of good quality. For that, however, the airport authorities have geared up to complete the integrated cargo handling complex in time for the tuna peak season. In the meantime, some temporary measures have been taken to handle export cargo from the airport.
     The plan is to modify the old terminal building at the airport to cater to perishable exports. Three cold storages have been planned and the estimates sent to the AAI for approval. Backing the move for better cargo facilities is D. Purandeswari, Member of Parliament from Visakhapatnam and the Minister of State for Commerce and Industry. She has promised the air cargo stakeholders from the city that she would release funds from her department for the construction of the integrated cargo complex.
Tirthankar Ghosh



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Dear Geoffrey,

     IATA’s EasyDGR SAAS solution was touted by IATA as “the first IATA product aiming at and supporting the shipper”.
     After launching the product (which had not been beta-tested and was subsequently prone to painful errors) IATA didn’t keep up with their promises (such as making available localized versions).
     The system since January 1 cannot be used for its intended function (creating DGD’s), apparently because the developers (India?) we hear are unable to include changes that took place in the IATA DGR 54 and need to be moved into program logic.
IATA did send an e-mail last December 2012 stating that they “regret inconvenience caused to the user” and promised a re-launch in “late March 2013”.
     However no further communication has been received from IATA and the system still does not work.
     Maybe some others might comment on a similar experience?

Best wishes,
Name withheld


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