Vol. 8 No. 96                                                                  WE COVER THE WORLD                                         Wednesday September 9, 2009

Cool Chain Vision
Benefits Everyone

     Let’s face it, 2009 may not be remembered as the year of the great air cargo trade shows and meetings.
     But that notion may be only because people are generally busy working at saving their businesses.
     We like Fruit Logistica that takes place every February in Berlin.
     The place is wall-to-wall fresh fruit and veggies with all the latest techno ideas to get stuff to market fresh and in one piece as well. Next Fruit Logistica will be held in Berlin February 3-5, 2010.
     IATA Cargo had a great World Cargo Symposium III in Bangkok this past March and looking ahead, WCS IV to be held next March in Vancouver promises to be better.
     At Munich Air Cargo Europe this past May the action was busy and big time turnout was also excellent although in retrospect the meeting sessions seemed inadequate to silly.
     In any case ACE takes 2010 off but promises to return in 2011.
     Worth mentioning is that both Fruit Logistica Asia (that took place last week) and an Asian version of Air Cargo Europe, Air Cargo China, have met with mixed results—fair to good for Fruit and not so good (at least among people we talked to) at the last edition of ACC 2008.
     So that leaves smaller meetings and other local events.
     One such smaller event with wide industry impact was the Annual General Meeting of the Cool Chain Association (CCA) held in Luxembourg this past May 5.
     Under the tutelege of the great Robert Arendal, (left) a founding father of TIACA and an otherwise air cargo transportation thinker and human being to boot, CCA in these tough times managed to come up with a remarkable statement/document of what the organization is thinking and hoping for and doing.
     The 2009 CCA AGM report here is spot on—not only at addressing some widely important issues confronting air cargo perishables, but also by bringing to the fore the social responsibility of air cargo to develop and practice best case scenarios with our great technologies for the good of everyone.
     CCA Secretary General Mr. Christian Helms (right) presented: “Make the World a Better Place”.
     “CCA is determined to harmonize the global movement and handling of perishables and temperature sensitive products (PTSP) to the benefit of the consumer and the supply chain participants.
     “Therefore, CCA established in 2005 the standard Cool Chain Quality Indicators (CCQI) that cover all logistic providers handling PTSP.
     “The first thought was that improving the cool chain means less waste and an extended shelf life.
     “Less waste means a higher supply of nutrition to lower costs and better quality and possible improvements for the world‘s poor.
     “By bringing all parts of the cool chain together to detect possible improvements and to make them achievable on a global scale, the CCA wants to contribute to making the world a better place.
     “Let’s face it: The world population has exploded to a total of 6.7 billion today and is estimated to reach a total of 9.1 billion people by 2050.
     “Malnutrition is the largest contributor to disease in the world.
     “In 2007, worldwide 923 million people (14% of the world population) were undernourished – while 1.3 billion people in the rich world suffer from overweight and obesity.
     The number of people in developing countries living on less than $1 a day was 980 million in 2004.
     “Threat of pandemics is growing due to globalization and quick responses are urgently needed – everywhere at any time.
     “Our industry faces 30% waste from harvest to the consumer while real food prices rose by 64% between 2002 and 2008.
     “Much remains to be done to eradicate the scandal of malnutrition in the context of a world that has seen global GDP double in real terms in the past 20 years.
     “There is a future need to produce 34% more food as well as fresh water for an increasing population - and at the same time also eradicate the present poverty of 1.3 billion people.
     “To meet present and future requirements we have to begin and change!
     “The waste in our industry is mainly due to: Lack of common procedures, lack of training, lack of communication standards, and lack of measuring criteria for the unbroken supply chain.
     “The CCA is not willing to accept the lack of sensitivity towards global problems and increasing shortage of nutrition any longer.
     “Similar challenges as in the perishable transportation industry can be found in the Pharma industry, where the need of an unbroken cool chain is often vital for the temperature sensitive products and the treatment of patients.
     “It is equally important to guarantee quick transport on a global scale as a pre-requisite.
     “The result of leaks in the cool supply chain can be for example reduced potency of vaccines because of wrong storage, which leads to reduced immune responses and inadequate protection of the patient.
     “Especially vaccines are precious and expensive so that wrong handling cannot be accepted.
     “An additional challenge in this industry is that pharmaceutical products often show high sensitivity towards temperature changes and exposure to ultraviolet light.
     “Medicinal products based on vaccines, monoclonal antibodies and advanced therapies will play an increasingly significant role in health care in the future.
     “The market value of e.g. monoclonal antibodies will increase from about €15 bn revenue today to €40 bn in the next 5 years.
     “To reach this level of growth, there are many scientific and technological challenges to overcome.
     “This will require close interaction among experts from the pharmaceutical industry, the technology providers, the cool chain and the regulatory authorities.
     “It has to be stated that the present Island solutions (geographical or by brand) are no long-term effective solutions.
     “Globalization in the production and distribution of biological medicines has opened new alternatives to manage public health concerns, but has also raised questions about the equivalence and interchangeability of medicines procured across a variety of sources.
     “International standardization of raw materials, of production and quality control testing, and the setting of high expectations for regulatory oversight of the production and usage of these products have been the cornerstone for their continued success.
     “But it remains a field in constant change.
     “Continuous technical advances promise to develop potent new weapons against our oldest public health threats, as well as new ones, but also put a great pressure on manufacturers, regulatory authorities, and the wider medical community to ensure that products meet the highest standards of quality attainable.
      “Globalization requires global temperature supply chains and cooperation with logistic providers around the world in order to be able to deliver pharmaceutics wherever they are needed, when they are needed.
     “The common goals have to be harmonization of the cool chain while we learn from each other’s experience,
and reduce waste.
     “We must improve the benefit for the cool chain and the consumer, and offer a chance of living for millions of people – today and in the future.”
Geoffrey

Outstanding Air Cargo Executives

     As we approach April 2010 and our 35th Anniversary of publishing Air Cargo News we have been thinking about leaders of air cargo, who have made a difference in this business.
     Here begins the first in a series of unique common interest stories of people companies and events of our time.
     At the top of people in this business who have always seemed to come down on the right side of things for the past two decades is Ram Menen, Senior Divisional Vice President of Emirates SkyCargo.
     But somewhere inside this most genteel and civilized leader of the world air cargo community, there must be the smallest voice that speaks every once in a while as he kisses his wife, Malou and son, Ram Jr. good-bye:
     “What the hell am I doing this for?”
     Ram finds himself on an airplane, in a hotel room, and out of a suitcase, more days and nights than he probably would like admitting.
     But since 1985 Ram has been an integral part of Emirates SkyCargo on its mission to becoming one of the great airlines in history.
     Mr. Menen has been “Mr. Air Cargo” at the carrier since the airline took off via a couple of rented PIA aircraft.
     As someone who worked his way from the ramp up, he knows that aspiring to be something better can’t be accomplished on the cheap.
     So Ram Menen works very hard, both for the airline and everywhere else for the air cargo industry.
     But that also means daytime is whenever you are in it.
     Try this schedule for a moment. If it’s Tuesday, then this must be Belgium. Two meetings in one place followed by the red eye, all-night flight, followed by all-day sessions in Rangoon or some other place, for crying out loud, are par for the weekly schedule of Ram Menen.
     If somebody at the other end of the phone advises packing a bathing suit, Ram can only laugh.
     All of that said, you couldn’t make these things up.
     Someone is not named “best in class” at every industry awards fest just because they show and work hard all the time.
     What we really like about Mr. Menen, is his outstanding mind, sense of humility and his ultimate flexibility, no matter the situation.
     Ram Menen is a genuine original.
     He is the rarest of individuals. Ram Menen has the power and will to move us all.
     The combination of excellence that is Ram Menen, is bestowed upon a very few people, by whoever makes those things up.
     Ram has a God-given gift of being able to be put into the middle of any situation, anywhere in the world, almost at any hour and he will know what to do.
     No matter what the situation, Ram Menen is always relaxed and at home, thinking ahead, outside the box inclusive of what will work best for customer, company or organization.
     He makes the best of whatever is going on, advancing every agenda.
     Ram Menen is never about Ram Menen either.
     Only the best people you ever knew are like that.
     He has been the Prince of Light, in an era of darkness in many parts of air cargo, doing his best to offer truth and hope.
     Ram, as example let it all hang out in 1996 when TIACA held its first, over the top, successful show in its history, in Dubai.
     Without Ram Menen, it is doubtful that there would be a TIACA today.
     Ram Menen has brought style and class everywhere he moves in the air cargo business.
     His comments and insights are always newsworthy and beyond that, useful to amateurs everywhere, as this world of air cargo opens and develops as the most exciting part of the airline business.
     The interesting thing is that Ram would tell you that he is proud to be an amateur too.
     Maybe that’s why he keeps moving up.
     The greatest airline in the Middle East listens to Ram Menen and so does the world of air cargo and beyond that, transportation executives around the world.
     I am proud and honored he is my friend.
Geoffrey

     Iraqi Airways, reborn as the oldest airline in the Middle East is about to once again take wing internationally.
     The long grounded Middle East carrier is eager to soon get on the map of international aviation again.
     According to the London office, scheduled flights from Baghdad to Gatwick are on the carrier’s agenda. “We don’t yet have any notice when services will exactly commence but London is a top priority on our network,“ stated a member of the local staff when asked by ACNFT.
     According to the source a passenger B737-400 will be deployed on that route.
     But there is no word as to whether the flight will be nonstop flights or more a round course with intermediate landing at airports like Istanbul, Frankfurt or Athens.
     All three and some more are listed as “current destinations” on the airline’s webpage.
     The reality here may prove a bit too optimistic in the short term.
     But no doubt things will turn better sooner than later as Iraqi will indeed again spread its wings internationally, with new aircraft coming into the fleet. But it’s going to be freighters, confirms Robert Strodel, Iraqi Airways’ consultant for all cargo matters and former CEO of Etihad Airways.
     “We just signed a leasing contract for one A300B4,” he says.
     The Airbus transporter is scheduled to commence flights immediately.
     Two additional A300B4 are on Strodel’s plan with agreements to be finalized within the next ten days.
     Provider is Sharjah-based Rus Aviation. The 1999-established lessor offers customers all kinds of capacity solutions for charter or scheduled flights be it equipment from Tupolev, Antonov, Ilyushin or – in case of Iraq Airways – also Airbus.
     Iraq is a thriving market for air freight business, Robert says, with lots of imports and healthy rates.
     But as can happen in air cargo, Iraq at least for the time being is a one-way directional market.
     Return at this point is about zip as there are hardly any exports contributed by the local economy.
     For upcoming home carrier Iraqi Airways there are further obstacles.
     “Actually we have to start from scratch with implementing an IT platform for reservations, tracing and tracking of goods, hire and coach personnel because there are hardly any skilled staff.
     “Also the ground infrastructure including loading equipment and warehousing has to be modernized at Baghdad airport,” Strodel states.
     Aviation was once a dominant sector until Saddam ordered his troops to invade oil producing Kuwait neighbor in 1991.
     After having been thrown out by the U.S. armed forces, the UN sanctioned the regime to ground what was left of Iraqi Airways.
     After President Bush’s crusade and the fall of the Baghdad regime, the airline has slowly, almost inch by inch rebuilt itself since 2004.
     Since terror didn’t stop and instability has suffocated nearly all commercial attempts up until now it has been impossible for Iraqi Airways to get back on the international stage.
     But down is not out as the airline business proves all the time.
     Now with three freighters joining the carrier’s fleet, transporting pallets and containers to Baghdad International Airport will once again move Iraqi Air to international addresses.
     “Without the Baath regime, Baghdad could have been the Dubai or Abu Dhabi of the Middle East,” a source told ACN/FT.
     “This is a proud airline with a pioneering tradition representing and growing along with what will emerge as a strong vital commercial economy of the Middle East.”
Heiner Siegmund

Air Cargo News FlyingTypers leads the way again as the world’s first air cargo publication to connect the industry to the broadly expanding and interactive base for social commentary—Twitter.
     Here are updates from Twitter so far this week. To be added to this 24/7/365 service at no-charge contact: acntwitter@aircargonews.com

September 8:   Wings Club luncheon 11:45 Thurs. Sept 17 at Yale Club NYC powered by speaker David Hess, President Pratt & Whitney. (212) 867-1770 or wingsclub@aol.com.

September 8:   Ryanair took delivery of another B-737-800 NG & now tops Europe in the type and is second biggest operator of B7378NG on earth.

September 8:   Vietnam Airlines vows to becoming 2nd largest Asian carrier after SQ-gets $50 mil for 16 A321s. VN goes to 104 planes by 2015-150 by 2020.

September 6:   Ethiopian Cargo gets 2nd MD-11F & 23% more lift. Ethiopian connects 19 cities in Africa to int'l destinations with 2 B757F, 2 B747F, 2MD11F.

September 6:   Russia pax minus 16.5% Jan/July, turnover minus 15.9% . Cargo down 23.1%, turnover minus 17.3% during the period.

September 6:   Quote To Remember—Lufthansa CEO Wolfgang Mayrhuber at takeover ceremony of Austrian in Vienna tells ATW: "Only profitable jobs are secure.”

September 6:   Good news for Embraer as Brazil Govt. began delivery of payments to EBJ to start building a cargo plane for the national Air Force.

September 5:   AMB leases 65,000 sq ft in AMB Port of Rouen. Meantime Goldman Sachs predicts15%-20% risk for com.real estate REITs, as loan defaults rise.


September 5:   Gulf Air started Bahrain and Baghdad service last week. Plan is for Gulf Air to five destinations in Iraq: Baghdad, Najaf, Erbil, Basra and Solamnia. Najaf & Erbil goes Sept. 15.

September 5:   Etihad Airways now flies Abu Dhabi/ Chicago A346 thrice wk in addition to New York daily & thrice wk Toronto.

September 5:   Turkmenistan Airlines bought three 737-700s. The country that used to be part of Soviet Union scored 11% GDP growth last year.

September 4:   Talk about stink pots...Ocean cargo powered by bunker fuel pumps out more CO2 annually than the United Kingdom (UK). Compared to aviation, ocean gets little environmental notice and maybe without pirates would get none.

September 4:   Smiths Detection has a $10.6 million U.S. Govt. deal for its mobile, high-energy X-ray solution (HCV Mobile) inspection vehicles for use to inspect inbound and outbound shipping containers and trucks.

September 3:   New GDP & BOP figures show Chile's economy at minus 4.5 % in Q2, after a 2.3 % drop in Q1. Air cargo-22.8 %, ocean -10% first half.


Women In Air Cargo