#INTHEAIREVERYWHERE |
Vol. 13 No. 77 | Tuesday
September 16, 2014 |
Sitting it out . . . Tomoaki Watanabe, 22, right, and Shion Tamura, 20, center, chat as they camp out at the front end of a line outside an Apple Store to buy Apple's new mobile phones at Tokyo's Ginza shopping district in Tokyo last week. With
September “peak season” yet to materialize for many, here
comes some exciting new iPhone products, and with them the hope that last
week’s Apple introductions will provide a jump-start to air cargo
demand.
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Tell
the industry about a female at any level that you know, or have known about
in air cargo. Write a short essay about what that woman means to air cargo. Pictures
are welcome. To send the story click here. |
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Long shot of Manila as a Japan Airlines (JAL) plane flies over burnt houses following a fire in Pasay City yesterday September 15, 2014 near Ninoy Aquino International Airport that left more than one hundred families homeless. No cause of the fire, and thankfully no deaths or injuries have been immediately reported. |
The
way it ought to be.
The really good news is Juha Järvinen will remain as Managing Director of Finnair Cargo. Järvinen has been named Chief Commercial Officer at Finnair, an airline that represents the standard of the business. Finnair CEO Pekka Vauramo said, “I warmly welcome Juha to the Executive Board and to head the Commercial division. During the last couple of years he has successfully renewed Finnair Cargo's operations and strategy.” Järvinen comes with a background of 14 years in passenger sales, commercial planning, and ground handling operations. Onnea! |
After
the welter of upbeat air cargo assessments and stats that have been pouring
forth from Asia in recent months, Peter Orange, Regional Manager, Freight
Sales, for the Asia Pacific and Indian Subcontinent at leading logistics
player GAC, is rather more sanguine on the forward outlook for the rest
of this year. But unlike many of his peers who see threats to demand from cloud and 3D technologies, he believes advances in technology can be of benefit to the air freight sector and a driver of demand. Orange said that so far in 2014, demand out of Asia had improved but insisted many markets still remained soft, in keeping with the start of the year when there was no spike in uplift volumes prior to Chinese New Year. “As we are now heading into a holiday period in China we are not seeing any significant rises in demand,” he said. “In fact, we are expecting the cancellation of freighter services to and from China and Hong Kong. “We see the peak season as being soft this year with perhaps some minor spikes, but it will not be the same as the pre-2009 days. Companies are becoming more conscious of the costs of their supply chains and have switched to better forecasting and planning. “This is true with a number of our clients and hence, we are seeing a drop in both unplanned and planned airfreight movements particularly to North America this year.” GAC has seen some changes in origin sourcing and this has been reflected in carrier strategy. However, Orange said the more traditional airfreight origins and hubs like Hong Kong remained strong players. “In recent times, we have witnessed the rise and fall of a number of start-up and joint venture cargo airlines,” he added. “Demand from Taiwan has definitely shifted, with the movement of manufacturing and supply to Mainland China.” Orange was also unusually downbeat on inbound traffic demand to China, a trade most of those in the industry contacted by FlyingTypers have been positive about this year. “Within the manufacturing sector, our customers are turning to more local sourcing of both raw materials and components in China,” he said. “Hence, we expect inbound demand to reduce in the medium to longer term.” The near- and re-shoring strategies of some OEMs was also reducing demand out of China and other parts of Asia as manufacturers shifted the point of manufacturing closer to customers. “Although this is driven in part by environmental demands, another significant factor is the instability in the supply chain resulting from costs, which include fuel and security surcharges, cancellation of services and in the case of ocean freight, ‘slow steaming’ to save fuel costs,” he explained. “Even though ‘slow steaming’ adds to transit times by up to 20-25% for shipments from Asia to Europe, these commodities cannot tolerate the sustained cost of airfreight services. “Although the demand out of China is expected to soften slightly in the medium term, it will continue to be the envy of many other countries.” Orange also went against the industry flow when asked about the ‘miniaturization’ of cargo, and the use of Cloud IT systems and 3D Technology, all of which he claimed were not having a bearish impact on air freight demand out of Asia. “The demand for new gadgets is growing at an exponential rate, and when new gadgets and smart phones are released, the volumes that are being shipped globally continues to increase,” he argued. “There is also an increasing demand in newer and developing markets for high-end luxury items and other consumables, and this will continue to drive the demand for air cargo services. “High-end food and consumables such as meats, dairy products and wine and spirits are of high value and have to be shipped via air freight. “We are of the view that technology within the industry is in ‘catch up mode’, as forwarders and airlines try to integrate their systems to provide greater visibility to the customers.” SkyKing |
“Eggheads have more fun because smart is the new hip!” reads the headline. “There's so much to be said for living a life of the mind. “A party is constantly happening in your own head, no need to stand for hours in queues only to defer to autocratic bouncers, there are few if any hang-overs, and the imaginary company one keeps—well, it ranges from mad geniuses to creative rogues, two categories that often overlap.” We have loved Berlin ever since our first visit there, and our feeling is in no small measure the result of the youth and vibrancy that imbues the city and keeps it exciting. We keep in touch with the Berlin art scene by reading Sugarhigh, an e-zine that captures the pulse of Berlin with amazing regularity and some great writing. Today it is easy to think that your inbox is too full of mail to add one more address. But we encourage you, dear reader, to dump the junk and try to make time to smell the roses, or in this case, indulge your literary sweet tooth. Knowing something about the cities we serve is good business, wherever we are. Here is a link. |
If
You Missed Any Of The Previous 3 Issues Of FlyingTypers |
Publisher-Geoffrey Arend •
Managing Editor-Flossie Arend • Associate Publisher/European Bureau Chief-Ted
Braun Film Editor-Ralph Arend • Special Assignments-Sabiha Arend, Emily Arend • Advertising Sales-Judy Miller |
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comments and news to geoffrey@aircargonews.com 100% Green |