The Singapore Aircargo Agents Association will soon be offering its own airport shuttle services for freight in a bid to boost the competitiveness of the city-state’s exporters, forwarders, and agents.
     The plan will be trialed with 28 forwarders starting July 1. Participating companies will combine loads onto trucks, which will then shuttle cargo within Changi Airport Cargo Complex.
     “Using consolidated trucks instead of multiple trucks to the same location will improve competitiveness,” said Steven J. K. Lee, (right) Chairman of SAAA. “This is a year three program and we’ll continue to increase capacity based on demand.”
     Lee told FlyingTypers his organization was being helped with the funding of the new service by Singapore’s government. “The government wants to help SMEs improve productivity,” he said. “Singapore is a high-cost environment so this is the only way we can compete.”
     The move to help Singapore’s beleaguered forwarders and air freight agents comes as the sector faces substantial headwinds. Changi’s freight volumes have remained static for a decade, while Lee said the high costs of operating in Singapore and the strength of the Singapore dollar had impacted the competitiveness of manufacturing. “Singapore is loosening the Dollar, but we’re competing against Vietnam and Malaysia amongst others,” he explained. “Vietnam has lower costs and the Ringgit has depreciated substantially. This is a concern for freight forwarders. If there isn’t growth they need to restructure and make redundancies. Some forwarders have already gone to a four-day week rather than shed jobs.
     “We are looking at every aspect to improve competitiveness, such as how we can have better automation, or seamless paperless transactions, so we can reduce manpower on documentation.”
     Lee said that in Singapore, as elsewhere, Q1 demand for air freight services had been poor and Q2 was proving “flat.”
     “The government is trying to support Singapore’s SMEs, which make up 60 percent of our manufacturing output,” he said. “Multinationals have the strength to continue to take the impact of the poor global economy, but SMEs feel they are under threat, because they are not able to price as competitively as bigger companies. Electronics manufacturing has been hit very hard by higher costs in Singapore.”
     Lower rates for air cargo services due to poor demand and excess capacity have further frayed the profit margins of Singapore’s freight sector. “We have seen some airlines, in desperation to fill up space, quoting ridiculously low rates such as Singapore to Hong Kong at Sing$0.20 cents per kg,” he said.
     Singapore’s huge use of e-commerce has also not helped forwarders. “Amazon and Alibaba have their own supply chain capacity,” he said. “E-commerce has forced manufacturers into situations where they don’t hold inventories, so they are not sending in bulk, they are sending it on demand, which benefits couriers. E-commerce means air freight forwarders are impacted because volumes are smaller, so they are not going in ULDs. Smaller shipments and more capacity are not a good combination.”
     Demand from major markets has also been poor. While exports to Latin America have been holding up well and Iran, Iraq, and Myanmar offer promise, Lee said the Asia market was largely dependent on China, which was in the process of major economic restructuring. “It will take a while before we see the light at the end of the tunnel in China,” he said.
     “In the U.S., every election means a slowdown in trade movements. “This happened four years ago.
     “Europe is mixed. The focus appears to be on immigrants, not international trade or economic growth.
     “It’s a rough market right now.”
SkyKing

     Our favorite yearly treat comes to New York City this week. Air cargo is once again delivering cases of the great German “royal vegetable,” spargel (white asparagus), once reserved for the upper classes.      The German American Chamber of Commerce celebrates the season with its 15th Annual White Asparagus Dinner held at The Tribeca Rooftop in Manhattan.
     With its unpatrolled view of the dazzling new Number One World Trade Tower, the Tribeca is a grand venue where hundreds will gather tonight (May 18) for an evening of dress-up, good food and music, and networking. Manhattan will be laid out like a magic carpet beneath the buzz of the rooftop party.
     “It is always a pleasure and an honor to bring these cases of white asparagus to New York,” said Jo Frigger, CEO of EMO Trans, which organizes and provides total logistics for the shipments each year.
     “While very popular during April until early June in Germany, the vegetable is a rarity in the United States and is not grown here,” Mr. Frigger said.
     “Some attempts have been made to produce the asparagus in Latin America, but the best big white asparagus, with its particular texture and sweetness, is grown in Germany, where for centuries it has heralded springtime.
     “Spargel is a moveable feast that air cargo can deliver as no other mode of transport,” Jo Frigger said.
     “Working closely with Lufthansa Cargo its strictly hands-on, all the way,” said Mr. Frigger, who noted:
     “This year 253 kg. of Spargel were transported from the fields in coolers to the airport.
     “The whole procedure lasts one and a half days, including customs and other procedures, as the vegetable passes through the security microscope.
     “But the payoff is well worth it as a grand tradition is maintained and enhanced by EMO Trans’ ability to handle all manner of shipments end to end.”

     As mentioned, April to June is “Spargel Season” in Germany. Roadside stands, farmers’ markets, and grocery stores all carry ample supplies of the “royal vegetable,” and many restaurants have special Spargel menus that feature asparagus as the star ingredient.
     Some folks even opt to pickle the white asparagus while it is in season, assuming that they can keep other members of their households away from the kitchen long enough to secure the asparagus in pickling jars.
     “Veronika, der Lenz ist da!”

  Passengers contemplating long lines are reflected in glass as they queue up for a security checkpoint under the atrium of the domestic passenger terminal at Hartsfield-Jackson Atlanta International Airport in Atlanta.
  Airport security lines have become so long that airlines themselves are urging passengers to share their frustration with the government on social media. Airlines for America, the industry’s trade group, just launched a website called www.iHateTheWait.com encouraging fliers to post photos of the lines on Twitter and Instagram along with the hashtag #iHateTheWait.
Geoffrey

Vol 15 No. 38
Turkish Opens Atlanta
Chuckles For May 16, 2016
Lightbox: THY Cargo At 80
The Turkish Way
Coming In 17
Ain't Lion—Glad To Retire
FIATA Hits The Rails
Along Comes Pretty Little May