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   Vol. 14  No. 94
Thursday November 19, 2015

Delta Cargo Ad

Health Supply Chains Wanting

When talking Pharma, nearly everybody has a plan, a cooler, a flight, or a better idea. The Air Freight industry is always seeking supply chain solutions to serve the health care business. But the air cargo industry may have been given an important tool on the road to deeper development into health care.
     According to a landmark and still relevant report issued in late 2014 after a study was conducted by professors at New York University (NYU) Wagner and Massachusetts Institute of Technology (MIT)-Zaragoza, “global pharmaceutical supply chains are fragmented and lack coordination, facing at least 10 fundamental challenges.”
     “Heroes may win battles, but it is capable supply chains that win wars [against disease],” writes Natalie Privett, assistant professor of management and policy at the Robert F. Wagner Graduate School of Public Service at New York University, and David Gonsalvez, professor of supply chain management at the MIT-Zaragova International Logistics Program and former global supply chain director with General Motors.

Natalie Privett and David Gonsalvez
     Yet, they add, the global health pharmaceutical delivery (GHPD) supply chains are wanting.
     The research article, entitled “The top ten global health supply chain issues: Perspectives From the Field,” has been published in Operations Research for Health Care, an academic journal, and is available for $31.50 (see below).
     The article sheds light on the key areas of weakness and what specifically is needed to strengthen the pharmaceutical supply chains.
     Privett and Gonsalvez interviewed and surveyed 22 individuals with various roles in supply chains and asked them to identify the “top ten” challenges as they see them.

Top Ten Health Supply Chain Issues

1.   Lack of coordination.
2.   Inventory management.
3.   Absent demand information
4.   Human resource dependency
5.   Order management
6.   Shortage avoidance
7.   Expiration
8.   Warehouse management
9.   Temperature control
10.  Shipment visibility.


     “Lack of coordination in the GHPD supply chain is a root cause issue whose existence aggravates nearly every other issue directly or indirectly,” according to the article.
     The paper draws attention to both the needs and opportunities in GHPD supply chains in an attempt to “drive future actions, policies, and research which can ultimately improve pharmaceutical delivery in developing regions and save lives.”
     It’s important to know more about your subject and then start thinking into even more finite end-to-end solutions.
     Works for us.
     To access the article, please click here:


Swiss WorldCargo Ad

Charge of the Lithium Transports

      As we continue our exclusive, in-depth coverage of the never-ending story of Lithium Batteries and air cargo, it should be noted that as recently as last week, FT wrote about the ICAO DGP's decision to essentially not introduce further limitations regarding the transport of lithium batteries.
      Although the joint paper presented by ICCAIA and IFALPA was rebuffed out of hand, other measures have been adopted.
     That has left some people up in the air with the current state of regulations.
     One main rule change that was approved by the ICAO panel concerns the SOC, or “State Of Charge,” meaning how much power can be packed into a Lithium-Ion battery prior to transport.
     Currently, the regulations do not limit the state of charge either way, but that is going to change—most likely effective next April 1, 2016.

 

SOC It To Me?

     While it is an established fact that the SOC (State Of Charge) has an effect on the danger presented by Lithium-Ion and Lithium Polymer batteries in transport, the bottom line of how much charge per unit is acceptable seems to vary greatly depending on the exact chemistry of the battery.
     For example, a great number of different battery technologies—or battery chemistries—fall under the classification of Lithium-Ion and Lithium Polymer battery, UN 3480.
     The reader should note that terms such as “seem to” and “presumably” have been employed here not for want of sufficient research, but because there are many open questions and uncertainties relating to the SOC.

 

The 30% Factor

     One thing, however, is agreed upon, and that is that “one size fits all” solutions do not exist when it comes to Lithium batteries solutions.
     In other words, while for some battery technologies the upcoming SOC limitation is 30 percent, for other manufacturers and shippers, limiting the SOC to 30 percent has a detrimental effect on the shelf life.
     In layman’s terms, while the “ideal” SOC varies depending on battery type and technology, it usually is indicated between 40 percent and 65 percent. Reducing or exceeding the SOC may also reduce the shelf life of these batteries, e.g. batteries stored for extended periods of time at a SOC of less than the recommended value may become unusable or at least will have their lifespan drastically reduced.

 

Different Strokes

     When it comes to SOC in a lithium battery, in a typical usage cycle a computer laptop battery, for example, may be depleted after two hours instead of five and/or become unusable after six months (instead of two years).
     Another important point is that the SOC as a requirement next April will in reality be a rule that cannot be checked upon acceptance for shipping.
     What that means is if during transit a consignment is involved in an incident or accident, the shipper will have to prove compliance with the 30 percent SOC requirement.
     But getting a line on what has happened in an incident may be easier said than done, since the SOC seemingly—at least for some battery chemistries—depends on the ambient temperature.

 

Degrees of Safety

     Firstly, Lithium batteries generally tend to exhibit poor performance in cold environments.
     So shipment SOC probably will depend on ambient temperatures during the initial charge and transport.
     One more question arising from this issue is that SDS, Safety Data Sheets, although not required for articles such as batteries (but often offered by manufacturers and shippers because of demands throughout the transport chain) limit the permissible ambient temperatures deemed “safe” for Lithium-Ion batteries to values outside of the temperature range indicated as “normal during air transport” within the IATA Dangerous Goods Regulations (-40 Degrees C to + 55 degrees C, subparagraph 5.0.4.1).     
     If an SDS limits the “safe” range to -40 to +50 degrees C, theoretically a transit through many airports would be a no-go since temperatures in cargo containers during a Middle Eastern transit scenario or many southern hemisphere tarmacs often reaches an excess of 50 degrees C.

 

Reality Check

     Taking a momentary broader view reveals that Lithium shipments transiting airports are a fairly frequent scenario today and there have been no reports of heated batteries going up in flames, so maybe all these “what if” scenarios and other hasty conclusions are a bit premature.


Give One To PRBA

     Given the lack of clear data surrounding the issue of SOC, it is hard to argue with PRBA’s comment that “PRBA believes it is premature to adopt a state-of-charge limit on lithium-ion cells and batteries, even as an interim measure.”
     PRBA makes a convincing point here, especially given the aforementioned fact that shippers such as distributors of various electronics—like MP3-players and laptops—have no means at their disposal to verify the SOC in their Lithium battery shipments.

 

An IATA Secrecy Act?

     After the voting within the ICAO DGP was leaked to AP and subsequent reports questioned IATA positioning itself against aircraft manufacturers, airline pilots, and the state exporting most of the batteries in question last month, an IATA spokesperson was quoted, saying:
     “IATA is concerned about the voting becoming public.
     “Discussions, especially on safety, should be held behind closed doors.
     “You need to keep the sanctity of meetings because people otherwise may feel that they have to vote a certain way.
     ‘The votes should be based on the facts that are presented,” the spokesperson said.
     While the spokesperson is certainly right about the need to make fact-based decisions, it needs to be emphasized that the delegates at the ICAO DGP represent governments and organizations involved in the air transport chain.
     That would also seem to include the responsibility that no voting connected to this all-hands-on-deck issue be conducted by secret ballot done behind closed doors:
     “It needs to be pointed out to IATA,” a source told FT, “that most detrimental to the concept of safe transport of dangerous goods—by air and otherwise—is lack of facts and assumptions made on hearsay.
     “Therefore, transparency in this issue is essential.
     “Everyone should be allowed to know how the representative of any government voted—either for or against the joint ICCAIA/IFALPA initiative. It should not be kept secret.
     “As a matter of fact, in times where lobbying by industry stakeholders and lobby organizations are under increased scrutiny, a more straightforward approach from IATA’s side might yield a more favorable response on the side of those stakeholders who haven’t revealed their opinion yet.”
Jens



People @aircargoamericas

HAE Higher & Higher

      One thing can be said for people in air cargo: they know how to have a good time, and you could see the good time they were having at Air Cargo Americas in Miami.
     Of course, it gets late early at Air Cargo Americas, with the partying starting at the show’s opening—the Latin rhythms always deliver an on-time take off to the big events.
     ‘Living La Vida Loca’ gets a big head start down where the trade winds play, and this happy HAE Group is proof positive!
     Say hello to (from left) Sales Mgr. Fla. Juan Bon; Sales Mgr. Fla. Pablo Hernandez; Sales Exec. Miami Lina Rivera; VP Americas Charlie Storcks, and MD Santiago Felipe Campillo


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Klaus Sieger

     If you think it is easy to step into the shoes of a legendary air cargo icon, we’re here to tell you that it actually takes effort, patience, and also a fairly thick skin.
     Luckily for Air Berlin’s subsidiary leisure Cargo, the airline was able to dip into its talent pool and come up with a highly qualified industry veteran as managing director. He succeeds Ralf Auslaender, the man who dreamed up the leisure Cargo concept while at LTU.
     Klaus Sieger is leisure’s new managing director. This soft spoken, self-effacing gentleman has only the nicest things to say about Ralf, adding that his take on the business is in “a wait and see mode.”
     leisure guides the fortunes of 19 airlines.
     “Right now I am running the list of carriers that use our cargo solution,” Klaus said.
     “Ralf handed the baton to a strong, well organized and operated enterprise, so although change is inevitable, we will move organically, nothing too dramatic.”
     Klaus says that he is happy to be back in air cargo, noting he was immersed in revenue management at AirBerlin when the call came for him to take the reins of the top post at leisure.
     “I guess somebody must have read my CV and noted my years with Lufthansa Cargo,” Klaus Sieger said.

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Giving Thanks

      Amongst all the suits in MIA we found the old cargo pro John Ryan, one of the people responsible for building the Virgin Atlantic Cargo brand in America.
      John crossed from the forwarder side to the airline cargo game more than 40 years ago. Today he sports a Jack Nicholson-inspired look, complete with shades and a requisite tropical shirt to suit the Miami weather. He still feels right at home as GSA Cargo Sales Manager New York for Hawaiian Air Cargo.
      “We have great service from New York to HON, with our A330s that manage to be well subscribed by a growing list of clients,” John said.
      “I love being out at JFK where the action is and involved on the Board of the JFK Air Cargo Association,” he added.
      “On November 19, from 11:45 am until 2:00 pm, JFK Air Cargo Association and JFK Air Cargo Managers Club hosts our annual Thanksgiving luncheon at the airport Crowne Plaza.
      “It is a big party, with lots of good food and networking.
      “We ask everyone to please bring an item to donate to the Long Island Harvest, either a frozen turkey or canned items.”
More info
Contact John Ryan

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Jens Tubbesing

     CEO of Airline Network Services, a new century GSSA based near JFK International in New York, Jens Tubbesing has built an impressive array of clients in the past few years.
     But the thing that was most interesting to us at Air & Sea Cargo Americas was to get Jens’ take on the state of the air cargo business in 2015.
     Jens once served as president of Cargo Network Services (CNS) and of course from that platform made many global contacts as CNS has conducted its widely supported annual CNS Partnership Conference (next year occurring April 10-12, 2016, in Nashville, Tennessee) for the past quarter century.
     “Today we need to bring even more professionalism to air cargo in every facet of what we do,” Jens said.
     “We have a grand opportunity to do more for the shipping community because most of the attendees at ACA in Miami are the true air cargo professionals,” Jens added.
     Asked if he ever contacts the growing number of ex-CNS presidents, a group that includes Tony Calabrese, Michael Vorwerk, and Warren Jones, Jens smiled, saying:
     “Maybe we could do a session sometime at a future conference.”
     Airline Network Services has offices in New York (JFK) JFK@ansgsa.com. Phone: +1 718 244 1250 and elsewhere at LAX, ATL, ORD, SFO, IAD, MIA, PDX, DFW, SEA, IAH, and Canada.




Le Beaujolais Noveau Est Arrive


Each year on the third Thursday of November, at precisely one minute after midnight, thousands and thousands of bottles of the fruity Beaujolais Nouveau begin their race to the villages and towns of France and the rest of the world.
   “In such troubled times,” writes Paris By Mouth, “who needs wine?
   “Who needs cured ham and cornichons? Who among us needs to gather with friends and loved ones?
   “Who can bring themselves to purchase inexpensive bottles of glimmery young Gamay and share it liberally with neighbors? Who wants to support Paris’ liveliest tradition-minded bars and bistrots when their business has been threatened?
   “Well, perhaps quite a few of us.
   “Beaujolais Nouveau, ordinarily an occasion for slightly meaningless fun, can become, in 2015, an occasion for slightly more meaningful fun.”

   Bravo Paris, we say.
   http://parisbymouth.com/beaujoulais-nouveau-2015/#more-67615
   “The 2015 vintage is going to be one of the all-time greats,” writes vintner Georges Duboeuf.
   “The color is a beautiful red with tones of purple and deep garnet.
   “As for the nose, it offers a magnificent array of forest fruits: blackcurrant, blackberry, and blueberry.”
   “What pleasure awaits the drinker!”

Eiffel Tower and Georges Duboeuf



FT111015
Vol. 14 No. 91
Sultan Of SkyCargo Opens Dubai South
An Arabia We Need To Know
Chuckles For November 10, 2015
Ciao Bologna
Letters: Warren Jones Dismissal
Veteran's Day Stands For One

FT111015
Vol. 14 No. 92
Lightbox for November 12, 2015
AAPA Into Ring of Fire

Qatar Cargo Pharma Express
Dart Delays Additional Freighter
Chuckles for November 12, 2015
Sumatran Rhino Back Home
Better News Rising
Move Over Air Berlin


Publisher-Geoffrey Arend • Managing Editor-Flossie Arend •
Film Editor-Ralph Arend • Special Assignments-Sabiha Arend, Emily Arend • Advertising Sales-Judy Miller

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