As January 2017 begins, Turhan Özen steps up as Chief Cargo Officer at Turkish Cargo Istanbul. He brings with him success and key expertise of the pharma business collected from his time at CEVA Logistics in Dubai, where he had served as head of their global healthcare sector since its launch in 2015.
     But Özen is no one-trick pony.
     At a time when it is apparent Turkish Airlines wants to increase market share in specialized products, Istanbul has landed a heavyweight with more than 25 years of experience in supply chain management. He is also a Turkish national and industry leader with bona fide credentials in the air forwarding industry and knowledge and connections in pharma.
      Turkish has a large investment riding on its new cargo facility at IST, a major portion of which is dedicated to express and perishables.
      The Turkish Airlines Board of Directors continues to build cargo capability with infrastructure and new routes opening in 2017. By naming Mr. Özen as the first executive to hold the Chief Cargo Officer title, they also send a powerful message to the shipping public: in 2017, Turkish Airlines is committed to further growth and development in the air cargo business.
Geoffrey  

     What happens when a well-seasoned, former head of Cargolux and one-time champion President of The International Cargo Association (TIACA) leverages his great leadership skills for the betterment of air cargo?
      In this tale, that person lands the job of a lifetime, which is exactly what happened when Mr. Ulrich Ogiermann took the reigns as Chief Officer Cargo of Qatar Airways a few years ago.
      Since then, the always understated and somewhat self-effacing Uli has been mostly out of the news as his charge, Qatar Cargo, has steadily moved to the top rankings in the airline business.
      Could things be any better for this German-born renaissance cargo man?
      There is no sign from Doha of a let up, either, as 2017 rolls along.
      The airline cargo resource with the image of a gazelle emblazoned on its aircraft tails is jumping to new heights.
      “No doubt,” Uli said, “2016 is another year of record growth for Qatar Airways Cargo, thanks to our customers for their continuous support and business.
      “Having received three B777 freighters and launched six new freighter services into the U.S., Canada, Europe, and Asia last year, we remain the largest scheduled fleet of freighters in the industry.” 

Qatar Cargo Trending

      “We have consistently gone against the trend in terms of growth in recent years, from position sixteen to number three in IATA’s international FTK rankings in just five years and the only carrier in the Top 10 who grew market share over 2015.”

Qatar Charter

      “Today, our fleet includes eight Airbus 330, eleven Boeing 777 freighters, and two Boeing 747-400 freighters.
      “Our expanding fleet count makes us a real charter player.
      “It may seem a tough environment in the industry at the moment, but with our strategic planning in network and freighter deployment, it will be a turning point for the market with Q4 signalling better things to come.”

Expanson Ahead In 2017

      “Network and fleet expansion remains our key focus this year. 
      “The airline has recently made the announcement of 15 new passenger gateways for 2017-18, in tandem with the extensive deliveries of A350, B777, and A380 passenger aircraft.  
      “On the freighter front, we will be receiving two B777 freighters in 2017, taking our total fleet count to twenty-three. 
      “We anticipate a significant upsurge in both bellyhold and freighter capacity in months to come.”

New Destinations

      “We will soon be launching three new freighter destinations into Latin America, i.e. Sao Paulo, Buenos Aires, and Quito; and further expand our freighter network in the United States with the addition of Miami (Florida).
      “The launch of this new freighter route next month in February 2017 entails great business and network growth for the cargo carrier as it brings the cargo carrier’s total freighter destinations in the Americas to 12 while offering belly-hold services to 13 cities on the continent.
      “Customer-first and service excellence is key to our sustainable growth. 
      “We will continue to focus on a successive launch and enhancement of our new products such as QR Mail, addressing the burgeoning e-commerce segment, and QR Express, offering industry-leading rapid delivery for time-critical shipments.”

We Can Work It Out

      “To match our growing capacity with the quality of our products and services, we will continue to work with our key stakeholders, such as IATA, and regulatory authorities to ensure dedicated compliance and adoption of advanced business processes, technology, and operation procedures.
      “Our aim is to uphold our top three position on IATA’s Cargo iQ quality ranking.”

The Climate Is Right

      “Investing in the future, we are developing an advanced Climate Control Centre in response to growing global demand in specialized air freight solutions for temperature-sensitive products,” Uli said.
      “Our new 2,471-square meter facility is expected to be commissioned in early 2017.
      “We will also activate an industry-leading temperature-controlled ramp handling system, including temperature and location visibility on ramp.
      “The industry is moving towards e-air waybill, the electronic interaction and booking system. Qatar Airways Cargo will continue to invest and enhance in IT infrastructure, enhancing our customer experience strategy.  “We are pleased to observe the growing user base on our recently launched Online Services, which offers e-bookings and other online activities. The system is powered by CROAMIS, our world-class in-house system that digitalizes end-to-end cargo processes.”

Qatar Loves Forwarders

      “We do not seek to disintermediate the freight forwarders in the supply chain,” Uli declared, “but rather we do look for opportunities to get closer to them and their clients where we can add value by making strategic network developments as well as quality product and service offerings. 
      “A good example is our constant investment in creating and expanding our QR Pharma express services for high-demand routes i.e. Brussels, Basel, Mumbai, Ahmedabad, and Hyderabad,” he said.

Employees & Customers

      “Our customer proposition is a simple one that we place at the very heart of our business,” Uli said. 
      “We call it ‘The 3 Rs,’ i.e. rates, reliability, and relationship. 
      “Every Qatar Airways Cargo employee must focus on contributing to these strategic pillars, corresponding to their areas of responsibilities, roles, and expertise. 
      “We remain highly supportive and creative when providing our customers with specialized air freight solutions to meet their needs. 
      “It is imperative for us to build trust and long-term business relationships with our customers through our sincerity and commitments as their preferred service provider.”

How We Improve Coming In Second

      “Staying ahead of competition, we emphasize achieving consistency of handling in terms of safety, security, quality, and operational delivery across the globe. 
      “This is not an easy task, yet we set high standards for these disciplines. 
      “With the new (second) cargo terminal underway, it underlines our commitment to not only enhance our capacity, capability, and efficiency, but more importantly, to perfect our customer service and best-in-class air freight products,” Uli concluded. 

Change For The Better

      “In my view, revenue uncertainty continues to be the biggest challenge for the industry. 
      “During the past two years the air cargo sector has seen further declines in yield, but at the same time shippers continue to protest about cost, poor levels of information technology, and reliability, while asset owners grumble about commoditization and eroding margins. 
      “This, coupled with the fragmented nature of the supply chain results in a two-class system: winners and losers. 
      “And it is increasingly difficult to predict which camp one will fall into at any given moment in time. 
      “As an industry, we are old-fashioned and slow to adopt practices to deal with these issues that comparable markets embraced a long time ago. 
      “We must find faster, more accurate ways to complete the deal-making between the demand and supply side of air cargo. 
      “Spot rates negotiated over telephone calls should already be a thing of the past. 
      “And before we congratulate ourselves for the growth in online bookings, let’s face up to the reality that often these are just a façade masking the same old processes. 
      “Instead we must fix the issues upstream by embracing big data, analytics, and forecasting, using modern tools to drive better pricing decisions, and we must be prepared to seal those deals with more than just a handshake. 
      “Risk-taking must be formalized, managed, and transacted through fully automated distribution methods. 
      “Everyone else is doing it. 
      “It is time for air cargo to catch up with the 21st century,” said Uli Ogiermann.
Geoffrey

     We’re launching 2017 with a look at some of the air cargo industry events and trade shows coming up in the year ahead.
      But before you consider these options, many of which will be far-flung depending on where you are based, please consider the organized air cargo activity taking place right in your own backyard. It’s important to the industry as a whole that we all get involved with our local airport or transportation industry club or association!

In The U.S.A., Go Local

      Local air cargo clubs are nothing new and draw people from every aspect of the business including airports, airlines, forwarders, customs brokers, truckers, warehouse, and more.
      It is exactly this diverse dynamic that maintains a foundation and framework where an active, engaged membership can build monthly or quarterly air cargo community contact meetings for networking and education.
      Engaged local airport air cargo communities can greatly help each other, sharing activities such as charity golf, air cargo days, and extended educational seminar events on specific subjects.

Doing The Most Good

      Some U.S. clubs that we have attended and observed over the years (both large and small) do a truly great job of bringing the community together for good. The Atlanta Air Cargo Association, JFK Air Cargo Association, International Air Cargo Association of Chicago, Air Cargo Club of New England, Los Angeles Air Cargo Association, and Air Cargo DFW Association stand out amongst the best.

Disappearing Act

      Sadly, there are some others—most notably, the Portland Air Cargo Association (PACA)—that have simply disappeared from the scene. A simple post on the PACA website notes:
      “After nearly 50 years, the Portland Air Cargo Association (PACA) is on an indefinite hiatus.
      “Anyone interested in continuing the organization, please contact us through this website.”
      PACA is not an isolated incident. The New Orleans Air Cargo Association also seems to have fallen by the wayside, along with some others.

American Forwards Dallas This Week

      An outstanding example of what can be generated locally by an informed and active air cargo community occurs this week on January 11 at the American Airlines Training & Conference Center in Fort Worth, Texas, with an afternoon forum and open discussion about air cargo challenges specific to Dallas.
      To paraphrase an old adage, “as Dallas goes, so goes the world.”
      Cost is either $55USD or $75USD (non-AfA member).
      Sponsored by the Airforwarders Association, American Airlines, and DFW Airport, the agenda includes “an amazing panel of speakers on local and national issues affecting the air cargo community.”
      Stay tuned…
      http://www.dfwaca.com/ftp/webdocs/AfADallasEventFlyer.pdf

The Greater Award

      We think air cargo clubs and associations organized for the greater good are a natural treasure.
      In too many cases these not-for-profit groups operate just slightly under the radar, relying on a few people who put their hearts and soul into keeping things going.
      In reality, awards from air cargo clubs are the most notable industry recognition any of us might ever hope to receive.
      Everyone in this business stands to gain if clubs and organizations gather broad-based industry strength, not only in addressing local issues, but also by consolidating thoughts and sharing the air cargo experience with others.
      Here are some options to think about as we pack our bags and get ready to depart to faraway places.

Top Discovery Of 2017


FIATA World Congress
October 4-8
Kuala Lumpur, Malaysia

      The Malaysian capital, Kuala Lumpur, will host the International Federation of Freight Forwarders Associations (FIATA) World Congress in 2017.
      The Congress theme is "Logistics Bridging Global Trade." Considering global trade is at peril in this day and age it may be interesting to see what FIATA can contribute to support it.
      The FIATA World Congress brings together freight forwarding and transportation industry professionals—some 40,000 strong from all over the world—to discuss the development and growth of trade business opportunities among delegates.
      FIATA is the big time. The 90-year-old forwarding group has quietly continued to develop its offering of the best, most comprehensive training program on the planet. Its members drive 90 percent of the global air cargo business.
      FIATA KL will be genteel civility amidst some well-thought-out meetings and sessions hosted by a truly remarkable organization.
      FIATA 2017 is also expected to generate RM11.5m (US$2.8m) in economic impact to Malaysia and increase Malaysia’s potential as a top regional gateway for freight transport and logistics.
      The four-day congress is expected to draw 1,200 participants, of which 60 percent will be international forwarders.
      Not to be missed.
      www.fiata.com

Four Excellent Standby Events 2017

Air Cargo Europe (ACE)
May 9-12
Munich, Germany

      Munich in May appears again in 2017 as Air Cargo Europe (ACE) is reprised at Messe Munich.
      It seems that in 2017 ACE parent Transport Logistik is launching specialized trade shows that hope to include air cargo, but ACE—held every other year during asparagus (spargel) time in Bavaria—has gathered steam alongside the much bigger multi-modal Transport Logistik Expo. Now, it’s the big kahuna of air cargo shows.
      Go for the walk around if nothing else.
      This show is enormous and contact is assured.
      Comfortable shoes are a must.
      http://www.aircargoeurope.com/

CNS Partnership Conference
April 30-May 2
Orlando, Florida

      Cargo Network Services (CNS) lives up to its name and every year confirms its reputation as the best place “to take a meeting,” minus the thunderous atmosphere and action of, say, Air Cargo Europe.
      All the big U.S. airlines and cargo bosses are there, as are a growing list of international carriers.
      New CNS President Lionel Van der Walt, who has ignited interest in the organization with innovative ideas including a regional Air Cargo Industry Affairs Summit (held last year in Washington), promises more of the same excitement and innovation at CNS Partnership 2017.
      http://www.cnsc.net/events/Pages/cns-partnership-conference.aspx

Air Cargo & Sea Cargo Americas
November 1-3
Miami, Florida
       
      Air Cargo Americas is the best, locally generated world-class event in the Americas; a wide, open, and even lusty couple of days of warmth and Latin spirit, it can also be a bit wild and even rough around the edges.
      But the people who network here—old and young—are always larger than life as the heart and soul of this American air cargo industry.
      http://www.seacargoamericas.com/

IATA World Cargo Symposium
March 14-16
Abu Dhabi, United Arab Emirates

      First of all, this “World Cargo Symposium” (WCS) event is actually a mandated, yearly general meeting for air cargo hosted by the trade organization IATA.
      However, for the past decade WCS has morphed into an open (for a fee) trade show with limited booth space also offered for sale.
      WCS is a veritable blizzard of concurrent sessions and general meetings, but what really draws the mass of media and other stargazers is a galaxy of top management in attendance, at arms’ length for the next big idea during a couple of open and evening events.
      http://www.iata.org/events/wcs/Pages/index.aspx

We Gather Together

      Considering all the things we do while employed in air cargo, making friends from all over the world is better than anything else.
      A curious thing occurs when we gather at air cargo events, whether near to home or far away.
      Sooner or later, our humanity takes over.
      The “mission” gets pushed back and we become much more than the voices and faces of air cargo today.
      This is our life, this career in air cargo.
      These are our friends who appear and are there for us, like touchstones, whether in Atlanta, Dubai, Basel, or Rangoon.
      As 2017 starts up, whether in a car to the airport hotel or boarding a jet, we can’t wait to see you at the show!
Geoffrey       

Vol. 16 No. 2
Delta 2017 Looks Like A Very Good Year
Chuckles for January 5, 2016
It Takes A Village To Ship Air Cargo