Qatar Air Cargo held a media day on October 27 in Doha and His Excellency Mr. Akbar Al Baker, group chief executive of Qatar Airways also known as “The Chief” showed up to deliver the news.
     According to the latest IATA international FTK figures, Qatar Airways Cargo is now the third largest international cargo airline in the world.
     “Being in the top three international cargo carriers in the world reflects the hard work and commitment of the Qatar Airways Cargo team over the past five years,” The Chief said.
     “Our cargo capability is a major component in driving our group success and growth, and it will remain a focus of our expansion in the coming years,” he added.
     “This is phenomenal growth for the rapidly expanding company, which has risen from 16th place to the number three position in just five years and now boasts a freighter fleet of six Airbus 330s, eight Boeing 777s, and one Boeing 747,” Akbar Al Baker declared.

New CTF Abuilding

     Mr. Al Baker also revealed plans to create a second air cargo transfer facility (CTF) at the airline’s Doha hub.
     Combined with the current facility, the new facility will create the ability to handle 4.4 million tons of cargo a year, up from today’s 1.4 million ton capacity.
     Qatar Airways Chief Officer Cargo Ulrich Ogiermann added:
     “The new cargo transfer facility, which is scheduled to open in 2018, underlines our commitment to continued growth and expansion in line with the airline’s group objectives for the future,” he said.
     “Having the ability to handle 4.4 million tons of cargo a year will put Qatar Airways Cargo into another league, and enhance the efficiency and service already offered at our existing state-of-the-art facility,” Uli emphasized.
     The Chief also said QR would continue to build further capacity for cargo at Hamad International Airport of up to 7 million tons after current expansion plans are completed.

Horse Latitudes

     QR Cargo also revealed plans to launch two new specialty products: QR Equine and QR Express.
     Mr. Al Baker indicated that future plans include five new freighters scheduled for the next year and new destinations in the coming months, including Durban, Boston, Adelaide, and Sydney.
Geoffrey

     In recent months FlyingTypers has found it hard to find bulls in the air freight market amid the welter of negative sentiment from economists, trade experts, and transport demand analysts.
     Cathy Roberson, who recently founded her own think-tank, Logistics Trends & Insights LLC based in Atlanta, Georgia, is not exactly a bull on air freight.
     But unlike many of her peers, the ex-UPS executive and leading consultant with some 15 years’ experience in freight and contract logistics markets can see multiple positives.
     Her optimism is grounded in observations that take into account factors other than just the recent performance of airline yields, volumes, and trade values.
     “Despite the concerning IATA statistics, I believe there are some bright spots – ecommerce, pharmaceuticals, and food/perishables,” she told FlyingTypers.
     “Cross-border ecommerce appears to be growing, [and] there’s a lot of interest in this from logistics providers such as UPS and FedEx, who each acquired companies with specialties in this field.
     “In addition, airlines such as United Star Express Airlines, a JV comprised of Okay Airlines and Air Transport Services Group, are focusing on e-commerce.”
     She also noted that this summer American Airlines opened a new 25,000-square-foot temperature-controlled facility at Philadelphia International Airport and expanded its cold-chain routes from the U.S. to Beijing, Buenos Aires, Shanghai, and Narita.
     Roberson also listed a raft of other indicators as reasons to be upbeat. “According to WorldACD data, for the first half of 2015, air cargo volumes for perishables were largest to the Middle East and South Asia, up 59 percent, and Asia Pacific, up 35 percent,” she said.
     “In pharmaceuticals, the Asia Pacific noted a 74% increase, and the Middle East and South Asia had a 66 percent increase for the same period.”
     However, despite the positives evident in some niches, Roberson told FlyingTypers the air freight business faced a supply-demand mismatch that had only been partially bridged in the first half of 2015 by the increase in demand due to the U.S. West Coast port labor stand-off and resulting equipment chaos and congestion.
     As the year had progressed and ocean backlogs had been cleared, the subsequent slowdown—albeit one broken by a few spikes, such as the iPhone launch in September and China’s October Golden Week holiday—had been long and would likely continue through the end of this year, and probably into January before the lead-up to Chinese New Year factory closures.
     “While ecommerce, pharmaceuticals, and perishables have benefitted air cargo volumes, rates remain a problem,” she added.
     “Similar to ocean freight, capacity is a concern. Combined with weak demand, this has seen rates fall.
     “High inventory levels in the U.S. are also keeping demand down as retailers such as Target work on reducing levels.
     “Meanwhile manufacturing levels in Asia are in decline and its economies are in a slump.”
    Until global trade picks up, demand for air cargo would be selective, spiking for certain events such as Alibaba’s 11.11, the Christmas Season, and perhaps the couple of weeks leading up to the Chinese New Year, she said. “A few commodities such as pharmaceuticals and perishables will benefit air cargo as will the demand for cross-border ecommerce, but the general market will only see major gains on a seasonal basis or due to major logistics difficulties affecting ocean freight, such as the West Coast ports dispute,” she concluded.
Sky King

Qatar offers a broad canvas about which to write, from its remarkable journey as an advanced, ancient culture to serving as an outpost of the developing global world to arriving center stage as one of the fastest growing, most dynamic cities on the planet.
     The best way to take the pulse of Doha Cargo and the city it inhabits is to take a walk and talk to the people.
     Earlier this week we spent a few hours inside the mammoth QR transfer handling facility at Hamad International Airport.
     Opened in June 2014, the Hamad facility is the name of the game for an avalanche of air shippers. A powerful, sinewed machine, it ingests and disgorges the offerings of combi aircraft and an ever-expanding fleet of freighters laden with cargo arriving from and departing to destinations around the world.
     The numbers on the CTF are notable: cargo capacity of 1.4 million tonnes per year; 5,000 cages for loose cargo; 1,005 main deck ULD units including 64 temperature-controlled positions for refrigerated units; 20 hoists and 22 landside to airside vehicles; three different offerings for cargo clearance; 44 buildup work stations and more.
     The ballet is never ending, and from the look of things the action in the Hamad International Airport cargo area will only get more intense as time marches on.
     Someone once said, “Looking at a cargo terminal is like watching a burlesque show—if you’ve seen one, you’ve seen ‘em all.”
     One looks around this giant place in search of the ordinary, but even the everyday is extraordinary.
Banks of computers and advanced IT systems follow every bit of cargo, punctuated by security scanners, special positions, chilled rooms for Flowers and Pharma, and grand stables for horse shipments.
     Yes, the Lodige System that handles the freight is brand new, with all the bells and whistles of advanced technology.
     To be sure, the modern fleet of refrigerated trucks that meet consignments on the ramp are impressive.
     But the most important element—the one you can find in every place like this—quickly emerges.
From the front door to the back, it is the 700 plus people who populate the Hamad facility 24-7 on 12-hour shifts that make the difference.
     We met Cargo Hub Operations Manager Serge Elkhoueiry (in photo, left).
     We also met Manager Cargo Logistics & Government Relations Camille Dirani (in photo, right). Of all the components that make this cargo mega-facility run, they are inarguably the most vital.
     Both are originally from Lebanon and instantly bring to mind a time four decades ago, during the early days of Middle East cargo. It was a time when Beirut-based MEA (Middle East Airlines) and TMA Cargo (Trans Mediterranean Airlines) were the world class, pioneering airlines of the region.
     Serge says he arrived in Doha coming from the big American Airlines Cargo hub in Dallas and was in search of “the challenge, the experience, and the excitement of a lifetime.” In short, he wanted to be part of something new and gigantic.
     Camille says he has been on the scene since he worked as lead ramp supervisor for Doha Travel Agency, which used to handle all the cargo here.
     This was when Qatar aviation was part of Gulf Air, back when beloved L-1011s populated the ramps.

     As we tour this new cargo wonder-world, walking out to the steaming ramp and a waiting B777-200F, the writer and the old cargo pro take a moment to look at each other, smile, each relishing the past while also embracing today, and tomorrow, and soon we’re back inside the supple air conditioned interior of the CTF.
     Serge walks with us and points out all the details, from the control room upstairs where operators monitor and direct all the movement in the building, checking and rechecking various functions of the CTF, to the cool rooms and the build up area.
     “We take nothing for granted; our mission is to be the best in the world and quite frankly nothing can stop us now.”
     Serge says his confidence is boosted every time Qatar CEO Aker Al Baker shows up and walks the place, checking things out.
     “The Chief is quite knowledgeable and connected to the air cargo business.
     “He knows what is important, asks the right questions, and wants to know if we need anything.
     “The Chief challenges, but he also inspires,” Serge says.
     Inside the big B777, Serge gazes across the tube of the giant about to be filled end to end, and assures:
     “My top priority is to maintain the service and quality for our customers and become one of the top carriers in the world.”
Geoffrey

     Air China and China Southern Airlines are shown here on a computer in Tianjin, China, on October 22, 2015. China is considering combining some operations of the nation’s three biggest airlines as part of a broad reform of its state-owned enterprises, according to people familiar with the move.
     According to sources, a plan to merge the cargo operations of Air China Ltd., China Southern Airlines Co., and China Eastern Airlines Corp. has been circulated among regulators in an effort to gauge their opinions.
     Other options include combining the passenger business of some or all of the three state-owned airlines, or completely combining at least two of the Big Three, the sources said.
     In any case, as 2015 continues all options are still on the table and no decision has been made.
Geoffrey