Vol. 12 No. 63                         THE GLOBAL AIR CARGO PUBLICATION OF RECORD                          Monday July 15, 2013

 

ecently FlyingTypers had the pleasure of a chat with Kenneth Ko, Director of International Freight Forwarding at fast-expanding Kerry Logistics.
Although headquartered in Hong Kong, managers at Kerry have spent the last decade taking the company global as well as building up its market-leading position in Greater China and the Asean region, where it is a preferred supplier of a number of Fortune 500 companies in the beverage, FMCG, fashion, pharma, and electronics sectors.
     Ko said Transpacific air freight volumes fell some five percent and Asia-Europe suffered a decline of around 20 percent last year. However, for companies such as Kerry with a strong foothold in emerging markets in Asia, this was offset to some extent by the 10 percent rise in demand for uplift on intra-Asia lanes.
     “Intra-Asia traffic recorded double-digit growth last year,” explained Ko. “The fastest growth lanes were in the West China Region, namely Chongqing, Chengdu, and Zhengzhou to Hong Kong and the South Pacific for electronics parts and electronics consumer items.”
     This year he expects Europe to see negative growth, but Asia-US demand will increase some 15 percent and intra-Asia lanes will continue to prosper with more double-digit expansion.
     “On the Asia to Europe route we see reduced demand carrying on from 2012 through 2013,” he said. “On the Transpacific we expect to see good growth based on an improved U.S. economy.”
     Despite the overall market gloom, individual trades such as Vietnam and Thailand to Europe, and China to the U.S., are expected to be strong in 2013, with good demand for telecommunications equipment. Ko also believes that the strength of Asian currencies will help bring carriers some respite on the traditional loss-bearing backhaul legs to Asia.
     “For the U.S. and Europe to Asia trades, we see steady growth based on the comparatively weak currencies of the U.S. dollar and the Euro,” he said.
     However, air freight capacity will continue to outweigh market growth in term of uplift demand—bad news for many airlines. “Supply over demand will continue in 2013, which casts doubt on whether the current low rates will increase in the year ahead,” said Ko.
     Kerry’s air service portfolio and network is currently China-focused, but the company is also focusing on building a presence in Europe and the Americas.
     However, in terms of new investments, Ko said most of the emphasis would remain firmly China-centric on inbound and outbound shipments, with “solutions supported through bonded warehousing and final mile delivery to support client end-to-end logistics demand.”
     He believes Asia’s airports and supporting services are now showing signs of improving standards as they are integrated into global supply chains and pressure is brought to bear on suppliers.
     “In general, Asian airports facilities and services have improved in recent years and we are seeing gradual improvements in local customs offices, which are working with forwarders to expedite clearance, especially in China and newly developed airports like Chongqing and Chengdu in the West,” he said.
     Airport users would benefit, however, from more investment in security services and equipment, particularly for cargo screening, which frequently inserts extra time and cost into the supply chains of shippers and forwarders.
     “Stringent security demands slow down airfreight handling times and have cost and time consequences,” Ko said.
SkyKing


ummer means fun, and lord love a circus! And special love goes to those intrepid folks who travel around with them, especially the littlest circus of them all.
Back in the 1930s, The Hal Kemp Orchestra had a hit tune in America called “I’d Like To See Samoa of Samoa.” Now in 2013 “The Magic Circus of Samoa” is showing more of the romance and spirit of the island nation.
Now in its tenth year, Magic Circus is out and about this summer touring the islands of the South Pacific whilst bringing a unique attraction to the often isolated inhabitants living on some of the remotest islands of the South Pacific.
     With a spirited air cargo partner, Magic Circus brings joy and enchantment to children of all ages who may never see any other kind of live entertainment.
     Magic Circus makes its home in Pago Pago, American Samoa, but out on tour the single ring under a big top tent (Big Apple Circus in New York has been presenting this kind of event for years) presents a variety of acts including acrobats, clowns, roustabouts, death-defying feats, and motorcyclists racing around the ring at top speed.
     Exotic attractions like the tallest man in the world, who stands 8'3" in his bare feet, have kids all over asking in wonder:
     “How’s the weather up there?”


      Founded by a Samoan, Bruno Loyale, who is better than your average ringmaster, Magic Circle has traveled to almost all of the South Pacific Islands, including the most isolated ones like Tonga, New Caledonia, and the Marshalls & Solomons, as well as the better known destinations like Tahiti and Fiji. In discussing his Magic Circus, Loyale commented, "I wished to bring to these remote islands a taste of what a live circus could be. What better entertainment is there for children and adults alike than a circus?"
     "It is something you will never see on television."
      Loyale said one of his biggest problems is finding the right mixture of circus performers who are willing to undertake grueling tours to less developed destinations. Another headache for Loyale is moving an entire troupe to venues when transportation to these islands is irregular and spotty.
      "Traveling between the islands, particularly remote ones like New Caledonia and Tonga, is difficult. Regular air and sea service is limited. Arrangements for our human and animal performers must be scheduled precisely to ensure our performance dates are honored. Finding suitable housing for our people and animals is also a problem because of limited accommodations on many of the islands," Loyale continued.
     Keeping Magic Circus supplied with the many props, costumes and stage equipment needed for its shows is another major difficulty.
     "We subscribe to the motto, 'the show must go on' and that means supplies for our acts must be available when we need them," averred Loyale.
     "Reliable, on time deliveries are a must whether the circus is in Tahiti or the Solomon Islands, with no excuses or hassles," he emphasized.
     The Magic Circus head said he relies on one agency for many of his cargo needs. "We utilize a freight forwarding company in Los Angeles, Consolidators International, to handle our freight," he commented.
     "CII has been our freight forwarder for the past number of years and its service has been exemplary." Loyale noted that CII is the largest air freight forwarder operating in American Samoa and its CEO, Julian Keeling, has supported Samoan education and sports activities for a number of years.
     "The company has become part of Samoan society," stated Loyale.
     "Our freight forwarder is particularly effective with emergency shipments," continued Loyale.
     "Two motorcycles broke down recently and we needed replacements in a hurry for races on stage. CII really saved the day by rushing the bikes to Pago Pago," said Loyale.
     Magic Cicus is thinking of new worlds, or at least islands to conquer, after its success in the South Pacific.
     "We are now planning to expand into the Caribbean, particularly the French islands of Martinique and Guadaloupe as our first venues," concluded Loyale.
Geoffrey

 

For Amerijet International, time is of the essence. As a cargo shipping company with a growing global footprint, service to more than 550 destinations worldwide, and more than 200 million pounds of cargo carried per year, customers in the Americas, Mexico, the Caribbean, Europe, Asia, and the Middle East depend on Florida-based Amerijet to move their personal and commercial cargo quickly, securely, and reliably by land, sea, or air.
      Amerijet's worldwide cargo transportation services depend on a reliable IT infrastructure to get planes in the air faster, meet more customs cutoff times, provide better customer service, and support organic business growth.
     Jennifer S. Torlone is the Senior Director, Technology and Information Services for Amerijet Holdings, Inc. Since joining Amerijet in May of 2011, Jennifer has positioned the company as a leader in technology, modernizing the applications, architecture, and infrastructure.
     She has transformed the Information Technology organization at Amerijet into a team of innovators, business strategists, project managers, and cross functional teams, while outsourcing the day-to-day activities (level I and level II support) to Dell. Her vision is to make it easy to do business—both with internal and external customers.
     A three-year plan Jennifer initiated included moving Amerijet to a new data center facility and replacing the company's mixed-vendor environment with a VMware and end-to-end Dell solution comprised of hardware, software, and services to provide maximum availability and performance for its Window Server-based business applications.
     Applications include cargo management, General Ledger and accounting, flight operations, MRO and warehousing. The cargo management system is home grown and is in the process of being redeveloped using “Fast Track” technology from Dell. Dell Compellent Fast Track groups the most active data blocks and places them together to improve performance; it also helps reduce long-term storage costs by maximizing performance on cost-effective drives.
     Amerijet's IT team migrated its entire “next-gen” data center in just 10 hours, and its new virtual environment enables the company to cut data center facility costs by 60 percent enabled by energy efficient, virtualized infrastructure. A reduction in the time to close flights by 96 percent (from 2 minutes versus 45 minutes) and expediting freight transportation to improve customer satisfaction are some of the key achievements for Jennifer’s team of 13 development and support staff. Amerijet can now run cargo inventory reports in seconds versus the 30-40 minutes it used to take and avoid unplanned downtime.
     “We are a very entrepreneurial company and I love the decision-making processes in place, which allow us to pivot quickly to match market requirements,” Jennifer says. “There are opportunities for a right-sized, nimble company to find and make every day.”
     For example, although not an IATA member airline, Amerijet participates in CNS and is a member in CASS Mexico. It served as a pilot and was the very first airline to actively use and connect to IATA’s Simplified Interline Settlement (SIS) electronic invoicing platform by the due date. According to IATA “…ICH (interline clearing house) Web service will be discontinued and all billings to the ICH will need to be made via SIS” by Q2 2013.
     EDI partners include FedEx, UPS, DHL, AA, and DL using industry standard Cargo-IMP. Amerijet is also a participant in the CBP ACAS pilot using Descartes technology. With one year left into her three-year plan, Jennifer says “what’s left is CRM, virtualization of our desktops, Wi-Fi improvements, infrastructure enhancements, and improvements in VOIP (voice over IP).”
     It’s very much a little-engine-that-could story, and who knows what’s next.
Geoffrey


 


EMO Trans Denver left to right: Janice Fahrenholtz, Customs Broker; Marijke Hildreth, Air and Ocean Exports; Don Derbin, Air and Ocean Exports; Lynn Derbin, Branch Manager; and Paul Walborn, Sales Manager.


     Talk about heavy lifting! No matter how big the project, EMO Trans Denver is capable of handling it.
     This five-person, full-service office specializes in moving heavy machinery, such as equipment used in the construction and oil and gas industries.
     “We frequently truck oversized cargo to and from the Ports of Los Angeles and Houston,” explains branch manager Lynn Derbin.
     “We’re involved with every aspect of loading, blocking, bracing, and transporting very heavy items.”
     Such pieces might be new machinery for oil and gas rigs, equipment used to produce telephone lines, and even oversized equipment for a facility that stores military mustard gas.
     “We moved equipment to a chemical depot that will be used to build a new plant where the gas will be decomposed into a less lethal powder form and moved from the state of Colorado,” Lynn explains.
     In addition to handling these jumbo projects, EMO Trans Denver also delivers white glove treatment when needed.
     “One of our regular customers is Ten Strawberry Street, a company that imports dinnerware from Bangladesh and Sri Lanka. So we do a good job of handling delicate and fragile objects as well,” Lynn says.
     Lynn attributes EMO Trans Denver’s success to its personalized service.
     “We know our clients and their needs,” she says.
     “They understand that we have the knowledge and abilities to do what we say we will do.”
     Another major factor is the sheer depth of experience within the office.
     Lynn herself has more than 35 years of experience in the industry, and other employees have similar backgrounds.
     “Our customs broker has 42 years of experience, and our sales manager has 35,” she says.
Geoffrey


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

 

RE: Connie Takes Wing Over Europe
Dear Geoffrey,

     Loved the letter and item on the Connie, but something bothers me.
    The April 17, 1944 Hughes/Fry flight was in the prototype L-049 [which hadn't even been named the Constellation at that time; and as far as I can tell had no white paint on it at all (other than in the stripes on the U.S. flag), it was all-over silver (aluminum) with red markings].
    However, N6937C is a L-1049H Super Constellation, i.e. not quite the same animal, and therefore not quite the most suitable airplane for recreating the original flight. [Apart from the fact that it's not a true Constellation, it also wasn't one of the last few built (depending on what you mean by "few").
    It was delivered in September 1957, and was followed by no less than 23 L-1049H freighters plus 33 WV-2 variants for the US Navy – until October 1958.]
    There was a flyable L-749 / VC-121A around about 15 years ago. I saw it at Dothan, AL, and believe it was once Gen McArthur's personal transport.
    It flew out of DHN, but I forget where to.
    I think it's now on display somewhere (Planes of Fame, AZ?).
    If it's still flyable, or near-flyable, it would make a much better candidate for the recreation of that epoch Hughes cross-country flight of 1944..
    I realize I'm being aking-size knit-picker, but just thought you'd like to know, in the interests of journalistic accuracy (I was one once, an aviation journalist, that is, long ago).
    And I'm all in favor of the 2014 event, even if it's not with a "proper" Connie – as long as it's not the soon-to-be-flying again Lufthansa L-1649A Starliner!

Best Wishes,
Martin
Martin Bleasdale
freighterdata.aero

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

FT070313

FT070813

FT071013