The India story continues to hold center stage for FedEx.
     While the company is expanding its services on the domestic front, FedEx continues to maintain its position through the introduction of new products and services.
     Holding forth, Rakesh Shalia, FedEx’s Managing Director – Marketing for the Middle East, Indian Subcontinent and Africa, exudes confidence because, as he said, “FedEx has always believed in being ahead of the market cycle and will continue to maintain our position.
     “Today, FedEx is one of the largest express transportation companies operating in India, with the largest number of flights—31 of them in a week with an airlift capacity of approximately 1,000 tons—connecting India to the world.”
     Salia pointed out that FedEx in India is growing steady with a positive outlook.
     “We have confidence in India, our acquisitions are aimed at enabling us to invest more effectively and directly in India’s long-term growth and prosperity. Our acquisitions of PAFEX and the recent AFL and UFL businesses have enhanced our business flexibility and speed to market,” he mentioned.
     Even so, on the economic front, “we continue to see modest growth in the global economy.” That is why FedEx continues with its strategic investments and innovative services in Europe, the Middle East, Indian Subcontinent, and Africa (EMEA) region to support its longterm vision of growth.

      “This will also enable the company to grow stronger when the economy rebounds,” he said. To handle the present situation, Salia said FedEx had adopted some innovative measures. Among them were actions to streamline operations and reduce cost where possible; deliver the best possible service to customers; and, offer a full range of services (air, ground and supply chain services) to meet requirements of the various customer segments to help them stay competitive in the evolving global economy.
     Others may not be too happy with the facilities and infrastructer available at Indian airports, but FedEx believes that the situation in the express cargo industry has improved and has been growing steadily. Salia was ready with the examples: the construction of the Bengaluru International Airport had provided infrastructure “to enable our dedicated freight operations in south India.” The modernization of airports and air facilities in New Delhi and Mumbai has instilled a definite sense of confidence that the Government of India was serious about building the infrastructure needed for logistics and air cargo industry.
     “However, there is room for improvement in several areas of infrastructural issues. Airports are hampered by factors like inadequate warehouses with airside and city side access, parking bays and single runways at certain airports, and cargo handling/customs clearance capabilities, which leads to congestions and undue delays.
     “In tier II cities, infrastructure development is required for smooth transportation as they are the new emerging markets. An efficient road and rail cargo infrastructure and well connected network can significantly drive savings in terms of service quality, inventory costs, and processing time,” said Salia.
     Highlighting the fact that India was very important among key emerging markets for FedEx Express, the main challenges—inadequate infrastructure, layered taxation, etc.—are major issues faced by express service providers, and they remain. Even so, FedEx has gone ahead with its domestic expansion. Said Salia:      “Our expansion plans and acquisitions into the domestic segment have been aimed to cater to Indian businesses, which are growing and expanding. The acquisition of AFL/UFL businesses has boosted our vision of being a ‘One stop shop’ for all customer segments in India.” These acquisitions support the long-term strategy to not only grow FedEx’s business in the country, but also increase market coverage for its existing portfolio and improve the service proposition.
     A cost-sensitive market, India consumers are changing, with quality of service being valued in terms of price, said Salia. But FedEx has worked out a number of initiatives to overcome the challenges related to cost-consciousness: to begin with, it is becoming a “One stop shop” for its customers. “Customers can now streamline their supply chain operations and integrate multiple vendors into one single vendor. It becomes easier for them to deal with just one provider and also to negotiate competitive rates and demand discounts by combining the requirements with one provider,” said Salia.
     The next big growth, according to FedEx, will come from a host of sources,a primary one being e-commerce. “The rapid evolution in India’s e-commerce habits has resulted in a sustained growth of our business from the industry, and the projected industry growth will offer opportunities for advancement that FedEx is well positioned to leverage. We believe that we will also see additional expansion for this specific sector coming from Tier 2 and Tier 3 cities.” In addition, growth will be seen in textiles including fashion, IT hardware, automobile, leather, pharmaceuticals, engineering, handicrafts, and high value items like gems and jewelery and electronics industries.
     As for pharma, exports are poised to grow at 30-35 percent in 2011-2012, twice the present rate of close to 17 percent, and are projected to touch $15.8 billion in 2013-14, contributing to about 8 percent of the total output of pharma products in the world, according to the Indian Drug Manufacturers’ Association.
Tirthankar Ghosh

     As November 2012 begins, Japan Airlines Cargo analyst for the carrier’s U.S. regional sales and marketing department in New York City, Mark Yamada told FlyingTypers:
     “Cargo demand to Japan has been slower than anticipated so far this year.
     “This has led to fierce competition and lower rates among airlines competing for cargo going to Japan.
     “Fortunately, October historically sees a boost in cargo demand to Japan because it is the beginning of the holiday season. November and the first half of December are part of our ‘peak season’ and we anticipate very good demand.
     “However, looking ahead is rather more difficult to predict.
     “There are many factors that influence air cargo demand.
     “The U.S. and Japanese economic situation, capacity to Japan (maybe fewer or more airlines may fly to Japan), exchange rates, and political parties in power, all influence cargo demand.
     “In my opinion, air cargo demand will be even more competitive in the next few years because customers have so many choices to move air cargo.
     “Keeping profitable during times when demand to Japan and Asia is weak, Japan Airlines focuses on excellent service and ontime performance for our customers.
     “We can only carry cargo in the bellies of our passenger flights, so our capacity and type of cargo is limited.
     We carry general cargo, but we also offer express and specialized services that make us stand out against our competitors.”
Geoffrey

Desmond Vertannes
Global Head Of Cargo
International Air Transport Association

Peter Scholten
Vice President Commercial
Saudi Airlines Cargo Co.

Giving Thanks With Harold

     On Friday, November 16 in Atlanta, Georgia a grand airport tradition occurs once again as an air cargo entrepreneur reaches out far and wide to host several hundred people to an old fashioned home made turkey dinner with all the trimmings, as America looks ahead one week from then to celebrate the wonderful holiday called Thanksgiving.
     Thanksgiving is the great day when the only thing that matters is family and the meal.
     But behind the ATL airport community open house is one of the great people that we have met during our 40 years covering this beat—Harold Hagans (pictured here).
     Hagans is an ex-military man who not only honors America, but also passes on what he knows and goes out of his way to help and support the ATL airport community.
     One thing Harold Hagans knows about as a true Southern Gentleman is preparing a meal out of turkey, the favorite food in America this time of year. While nearly everybody else puts the bird into an oven, Harold digs back into the past and sets up a unique and imaginative deep-frying operation for turkey right inside his ATL air cargo facility. He then throws open the doors and invites the neighbors in to deliver a little bite of heaven.
     “We love to do this, to show our appreciation and share our good fortune at Thanksgiving with others,” Harold says.
     “Frying the turkey seals in the flavor and juices and makes the bird crisp and delicious.
     “While many are now using this method, we also fix up our poultry with special herbs and rubs handed down in my family over the years.”
     Harold Hagans has served as chairman of the International Committee for Clayton County and as President of Atlanta Customs Brokers & International Freight Forwarders, which was selected as the international business of the year in 1995 and again in 2001 by the Chamber of Commerce. He holds a Bachelor's Degree in Business Administration and Criminal Justice from Columbia.
     In addition to teaching international import and export classes for Mercer University and Perimeter College, he has also served as instructor for Dale Carnegie.
     His past credits include serving on the Atlanta International Committee, acting as Chairman Vice President of the Terminals Committee for Hartsfield International Airport and President of the Customs Brokers and Freight Forwarders Association of Atlanta.
     “My employees and colleagues in air cargo are my family,” he says.
     “I am here early every morning because we handle such a broad variety of specialized shipments.
     “Our business in Atlanta has been greatly enhanced by the ability to utilize the excellent perishables center here.
     “We move unusual cargo that others shy away from by offering several value-added features, including fumigation, on site Customs and Department of Agriculture, and other services in a one-stop arrangement.
     “Everything we do at ACB begins as hands on total service.
     “So every day I start early and make my rounds.
     “For example, twice weekly we move more than three million worms for two companies up north." I often wonder who counts all those worms?
     Harold Hagans is what this business is all about, or at least, it ought to be. It is arguable that if Mr. Hagan’s had never done much else, his willingness to act as mentor to scores of air cargo people that now span generations would have qualified him as one of the all time greats in the history of world air cargo transportation.
     The offices of ACB are efficient, warm and friendly. The place, by any measure, is both beautiful, bright clean and comfortable. They make you think, “Anybody who takes this kind of pride in his place, is surely going to be good to ship with.”
     But Harold Hagans takes things farther.
     In addition to serious business, he seems to know a lot about the stuff he is shipping. Inside the handling facility and warehouse, three tons of coffee sit next to pallets of flavored chips used to smoke meat. Elsewhere sits a big consignment from Mongolia, resting easily with a Lotus racecar bound for South America. Several boxes from Africa filled with stuffed rare animals are about to be cleared by Customs.
     “You should have seen that stuffed gorilla that just left here,” one of the girls laughs. “Talk about big!”
     Harold reports that, in addition to other activities in which he is involved that lift Atlanta air cargo and the ATL Airport community in general, his Atlanta Customs Brokers in 2013 is adding a new, enhanced export staff department with extended capabilities.
     No surprise there, as Mr. Hagans always puts his staff, customers, and Atlanta first.
     But back to what matters now—frying turkey.
     “One of the ‘musts’ to get things right is our use of peanut oil.”
     “We started out a few years ago with three of our folks here eating a peanut butter sandwich,” Harold smiles.
     “Last year we deep fried 290 lbs of turkey and served 483 people.
     “It’s a real open house and everyone should drop in, eat until your hands get tired and have some fun.”
     Harold and his crew will be opening up the facilities at Atlanta Customs Brokers on November 16, 2012, from 12:00-14:00 hrs.
     Atlanta Customs Brokers. Tel: 404-762-0953, Cell: 678-414-6817. acbiff@atlantacustomsbrokers.com www.atlantacustomsbrokers.com
Geoffrey/Flossie

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RE: Jennifer Lifted AA Cargo

Geoffrey,

     Once again you have hit the nail on the head with your recent article on AA Cargo's Jennifer Pemberton.
     I consider Jennifer a personal friend who helped me tremendously in my role at the AfA through her remarkable insight and advice. Jennifer truly understood the importance of the forwarder as a key link in the air cargo supply chain.
     Aside from her keen public relations acumen including a willingness to use social media as an effective communications tool for AA Cargo, I will always remember Jennifer's positive attitude and constant smile.
     I wish Jennifer luck and hope our paths will cross again soon.

Brandon Fried
Brandon Fried, Executive Director
The Airforwarders Association
     

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