We paraphrased our headline from the famous Mark Twain, but given recent news from Boeing, the sentiment stands. Editorial aviation writers around the world were wearing egg on their collective faces as this bright, new week dawned. The recent declaration announcing the end of the B747 was spoken too soon. Boeing has pulled an 11th hour comeback, landing a 14-aircraft order from UPS and thus extending the production life of the airplane that taught the modern world to fly, the venerable B747.
      There were only six B747 aircraft to go on the last production line. At half an airplane a month, the death rattle of the B747 was due for sometime next year.
      Well, forget all of that and good for Boeing. There is certainly space in the world for what is arguably the greatest airplane of all time.
      Long live the spirit of the airplane that will not die, the quite lovely B747.

      UPS offered the air freight industry plenty of cause for confidence ahead of the traditional peak season. After posting impressive profit and revenue figures for Q3 on October 27, Big Brown added to the good vibes by forecasting a record Black Friday-New Year holiday season, and then announcing an order for 14 new Boeing 747-8 jumbo freighters.
      The freighter order, UPS’s first since 2013, was a sign of faith both in the expected tonnage growth through its domestic and international networks and recognition that more capacity is needed during peak season. Amazon’s move into logistics fulfillment and in-house air freight operations has made that fact eminently clear.
      But hidden within UPS’s financials was the revelation that the company’s Supply Chain and Freight Division had struggled with a “weak” international air freight forwarding market in Q3, although its North American air freight business fared better.
      UPS’s international air freight performance surprised many following on, as it did, from the general spate of positive market indicators for Q3. HKIA, generally a reliable bellwether for freight markets, saw robust growth of 7.2 percent year-on-year in September as monthly volumes at the world’s leading freight hub reached 394,000 tons. Transshipment traffic, which increased 15 percent compared to a year earlier, drove throughput, while volume to and from key trading regions in North America and Southeast Asia increased significantly.
      The Association of Asia Pacific Airlines (AAPA) also reported a further uptick in air cargo markets last month as demand grew 5.3 percent measured in freight ton kilometers.
      “Air cargo volumes aggregated for the first nine months of the year match those of the same period last year, reflecting the modest upswing in demand in recent months, bolstered by higher shipments of electronics designated for product launches,” said Andrew Herdman, AAPA Director General.
      Rewind a month and IATA’s global analysis reported that August volumes had also been strong with demand, measured in freight tonne kilometers (FTKs), up 3.9 percent year-on-year. Carriers in all regions except Latin America reported an increase in year-on-year demand in the month, while North American carriers posted a 5.5 percent surge.
      Pricing has also been on the up. After gains in August, Drewry’s East-West Airfreight Price Index continued to climb in September, up 4.4 points in the month, the second largest gain this year.
      The Index, a weighted average of all-in airfreight “buy rates” forwarders paid to airlines for standard deferred airport-to-airport airfreight services on 21 major East-West routes for cargoes above 1,000 kg, reached 91.9 in September, equivalent to an all-in buy rate of $2.98 per kilo. Although still behind the 97.2 reached in September 2015, the reading was the highest recorded this year.
      “While this is undoubtedly good news for sellers, the rate remains considerably below that of last September, which was $3.15, or 97.2 points,” said Drewry.
      “It is the only September since Drewry began reporting on airfreight rates in 2012 that the rate has fallen below $3.00.”
      Which probably explains UPS’s international air freight travails.
SkyKing

     We cannot categorically say that the following letters were unsolicited. Like most other organizations hosting industry events, IATA Cargo Network Services (CNS) looks for the community’s reception to their event for a number of reasons.
      The recent CNS IATA-U.S. Air Cargo Industry Affairs Summit (USACIA) event held on October 4-5 bears a closer look on a few levels.
      Firstly, USACIA was a first-time gathering, so the first question is whether this was a one-time occurrence.
      Secondly, the event took place in Washington, DC, right under the noses of the U.S. government.
      That raises the stakes. In an election year, some government types might show up and be impressed enough with air cargo to lean in to some of the issues confronting our business.
      FlyingTypers obtained the following thoughts from some attendees:

      “I don’t believe I’ve ever seen the level of engagement and star power before at a first time conference that the USACIA event was able to achieve.
      “This conference is a testament to the influence this group has within the industry and I look forward to offering my ongoing support.
      “A huge thank you to the USACIA folks for allowing the NCBFAA to be a part of their inaugural eve.” - Megan Montgomery, Executive Vice President, National Customs Brokers & Forwarders Association of America (NCBFAA)

      “I wanted to take a moment to tell you how much I enjoyed the Air Cargo Industry Affairs summit in DC. I think it provided a forum for various key industry associations to band together and demonstrate unity in front of lawmakers, and todiscuss topics that are important to our future success. I thought the location was very appropriate and the conference speakers were excellent. I would highly encourage you host the event again next year as I think its value and participation will only grow. Thanks for being the driving force behind the event!” - Wally Devereaux, Sr. Director Cargo and Charters at Southwest Airlines
       
      “Thank you for putting on an excellent program.” - Mark Hansen, Lead Counsel at FedEx
       
      “Thank you for inviting me. I really enjoyed it. It was a fantastic event and I look forward to attending again next year.” - Tom Belmont, Chief Operating Officer at MNX Global Logistics
       
      “Thanks for allowing CNS to take the lead in bringing all of our organizations together for a great event. I’m very pleased and proud to have been part of it. I look forward to future USACIAs!” - Sue Presti, Executive Director of Government Affairs at TIACA
       
      “I appreciate the invitation to participate in the panel. I found it a first class event and an excellent opportunity to address and discuss differences and industry issues. From the point of view of government, I found it particularly attractive, since I am convinced of the need for public and private sectors to work together in order to establishing policies and regulations that will benefit the economy and international trade, and facilitate business. In addition, the event was an excellent opportunity for networking, which is key to do follow up on the activities and topics. I forwarded the content of the event to the Ambassador and in a couple of weeks I will meet with the Economy Minister and the Deputy Minister of Trade, at which point I will also share some of the topics discussed. Count on me if you need any support from the Embassy of Chile.” - Rodrigo A. Contreras, Head Economic Department/Trade Commissioner at the Embassy of Chile
       
       
      “I just completed the ACIA Summit survey, but wanted to send a personal ‘thank you’ to you two. I greatly appreciate you allowing me the opportunity to meet and engage with multiple industry representatives and hear first-hand the importance, the challenges, and the successes of the air cargo environment. While I engage with industry every day, I thought your event was one of the more valuable ones as you all offered up noteworthy, key industry individuals and timely, relevant topics and panel discussions. Even though I have toured all three express carrier hubs, as well as various U.S. border cargo operations, I gained quite a bit of insight into topics and concerns your industry faces every day. Again, I appreciate the opportunity to attend and participate.” - Charles (Chase) Wollenhaupt, Senior Policy Advisor at DHS
       
       
      “I thought the conference was fantastic. I learned a lot, I met and conversed with a number of interesting individuals, and by and large I thought most of the speakers and the panels were extremely fascinating and educational.” - Fred Ruggiero, Vice President, Cargo Americas at Cathay Pacific

A Collaborative Event

      The event was coordinated in collaboration with the following industry associations: Airforwarders Association (AFA), Airlines for America (A4A), Cargo Airline Association (CAA), Express Association of America (EAA), Express Delivery & Logistics Association (XLA), International Air Transport Association (IATA), National Customs Broker and Forwarders Association of America (NCBFAA), and The International Air Cargo Association (TIACA).

Who Was There

      USACIA was attended by 130 senior industry executives and the agenda included the following key note speakers: Commissioner Gil Kerlikowske of U.S. Customs and Border Protection (CBP); Administrator Peter Neffenger of the Transportation Security Administration (TSA); Alan Bersin, Assistant Secretary for International Affairs and Chief Diplomatic Officer at the U.S. Department of Homeland Security (DHS); Marianne Rowden, President and CEO at the American Association of Exporters and Importers; and Rafi Ron, President and Chief Executive Officer at New Age Security Solutions.

Sessions In Detail

      CNS President Lionel van der Walt organized the event and fills in the details:
      “Summit sessions were centered on this theme of the strategic importance and value of air cargo both globally and in the U.S., as well as addressing key industry projects and issues at hand.
      “This included sessions on ACE, ACAS, and other factors that are negatively impacting air cargo at airports, including a lively debate on the unacceptable length of time it takes to obtain permits for airport workers.
      “There was also a very informative and well received session on air cargo and its social relevance that covered topics such as disaster relief, providing veterans with career opportunities in our industry, and the good work the industry is doing to protect and counter the illicit trade of wildlife, especially endangered species.
      “One of the key topics discussed was the use of private canines for cargo security.
      “The industry has been advocating for the adoption of such an approach for some time, and was pleased to hear Administrator Neffenger state that he personally supported the use of private canines for cargo security during his keynote address.
      “Another high point was a meeting that took place between the Mexico NAFTA representative that was present at the meeting and Alan Bersin from Homeland Security.
      “They discussed further measures to unify and improve the sharing of data for manifests based on the discussions at the event,” Lionel said.
      Lionel van der Walt took a long look in the mirror and observed building a future for this event.
      He is quick to point out that there are “simply too many events going on all at once in air cargo”.
      So what makes this event different?
      “The USACIA Summit not only provided a platform for industry associations to ensure that all relevant government agencies are aware of our industry priorities, concerns, etc., but just as importantly provided an opportunity for the industry to hear and learn from the heads of these government agencies and their staff as to the government’s concerns, priorities, projects, etc.,” Lionel insists.
      “Constructive dialogue is a two-way process!
      “Only once we fully understand each other’s views will we map a path to an outcome that could be considered a win-win for all.
      “The USACIA Summit definitely helped to facilitate this objective.”
Geoffrey

In This Issue:

FIATA Yesterday Today And Tomorrow

IATA And FIATA Sign Historic Accord

The FIATA Logistics Academy

Jean-Claude A FIATA Force Field

Oh What Antonella Can Do!

Babar Of Pakistan

Krems: "Forwarders Are Sexy"

And More

Vol. 15 No. 84
Where Tomorrow Looks Better Every Day
Can-Can ATC 1073 At 1700Chuckles for October 27, 2016Turkish Airlines CEIV Award Celebrates A Decade
Live From ACF 2016
So Smart It's Stupid
Shout Out Emma