United Cargo Ad

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40th Anniversary Ad
   Vol. 16 No. 37
Wednesday April 19, 2017

Landmark United And Lufthansa Cargo Alliance

United Airlines and Lufthansa Cargo have signed a joint venture agreement for extensive cargo cooperation on routes between the U.S. and Europe.
      The cargo joint venture partners plan to provide a wide range of benefits to customers by cooperating on the availability of their capacity and aligning booking and handling processes.

United and Lufthansa

 

Even More Connections & Service

      The carriers’ joint venture route network will provide greater flexibility and time savings to customers with thousands of new weekly route combinations and more than 600 direct connections per week between the U.S. and Europe.
      The combined network offering creates additional benefits through access from either partner’s booking channels along with coordinated handling processes and transfers at numerous stations.

 

It's Gerber Baby

      “The Lufthansa-United cargo joint venture will generate numerous benefits for our customers because our continental and transatlantic networks, our hubs, and our fleet complement each other effectively,” said Peter Gerber, Lufthansa Cargo CEO.

 

Sexy Cargo Rising

      “We are excited about the benefits that will be generated by our teams’ cooperation and our combined capacities,” said Jan Krems, President of United Cargo, who famously described air cargo as “sexy.”
      “Cargo customers will appreciate the opportunities for quicker and easier shipping between key locations in the U.S. and Europe.”
      The contract signing initiates the implementation phase of the joint venture project, during which the carriers will align their cargo IT systems and business processes with the goal to implement Business Day 1 later this year.

 

United Cargo Has Stunning Results

      United Cargo stayed in a groove in March, moving 279,592 cargo revenue tons—a stunning 23.8 percent boost over the previous March. For the first quarter, the total was 748,434 tons, a 20.3 percent increase over Q1 2016.
      The good vibes continued Tuesday when the carrier reported its first quarter financial results. United Cargo earned $220 million in revenue in Q1, up 13.4 percent from the same period last year.
      “Like everyone in our industry, we were really energized by the healthy expansion in business in the second half of last year,” United Cargo President Jan Krems told FlyingTypers.
      “After a really strong holiday peak season, we were optimistic that the momentum would carry over into 2017—even with the uncertain world political climate and the looming possibility of protectionism.
      “Our Q1 volume and revenue results give us even more confidence that the long-term trend is positive and that United Cargo will capture a major portion of the growing market,” Jan added.
      “Our United colleagues, in operations and elsewhere, had a tremendously successful quarter that played a crucial role in Cargo’s success.
      “They achieved a record-setting 25 zero mainline-cancellation days and completed 97.5 percent of flights in the first quarter, and also had the best-ever consolidated on-time departure rate for both February and March.
       “This kind of reliability and teamwork inspires our cargo team to raise our customer service to an even higher level,” Jan Krems declared.
Geoffrey



Tirupur Group


     Some people who manufacture ready-to-wear clothing refer to it as the “rag business” in conversational shorthand.
      But when almost four tons of garments moved in a bonded truck from Tirupur to the Bangalore International Airport Limited (BIAL)— about a 5-and-a-half-hour road journey at a distance of 325-odd kilometers—the result was a rags-to-riches delivery without a stitch lost in time. It successfully showcased the innovative mindset of the private promoters of BIAL.

 

Knitware To Anywhere

      The Tirupur-made garments were shipped to Tel Aviv on a British Airways flight. Known as the knitwear capital of India and accounting for 90 percent of country’s cotton knitwear export, Tirupur manufactures for some of the world’s largest retailers including C&A, Nike, Walmart, Primark, Adidas, Switcher, Polo Ralph Lauren, Diesel, Tommy Hilfiger, M&S, FILA, H&M, and Reebok.
      Manufacturers from the “Knitwear City” have always been on the lookout for easier connectivity to international airports; before the bonded trucking program took off, loads of garments were sent to Chennai, a 7-and-a-half-hour road journey at about 470 km away.

 

Bonded Concept

      BIAL, in collaboration with its cargo partners—Menzies Aviation Bobba Bangalore (MABB) and Air India SATS Airport Services (AISATS)—conceptualized the dedicated bonded trucking service from Tirupur to Bengaluru.
      Part of the Knitwork Connect BLR project, it was initiated with the aim of connecting Tirupur to Bengaluru.
      The move will enable exporters from Tirupur and surrounding areas to freight their consignments through Bengaluru Airport via road transport in an efficient, safe, and highly process-driven manner.
 

Tirupur Truck

South India Rising Gateway

      As an airport located centrally in South India, Bengaluru Airport has a geographical advantage that would benefit exporters from the city. 
      The trucking of cargo between Tirupur and Bengaluru will form a critical part of the airport’s cargo operation.
      A dedicated road feeder for connecting cargo will be introduced to maintain a minimum transshipment time. 
      The cargo will be moved via purpose-built truck docks to achieve a quick turnaround. This feeder service will ensure that air freight reaches its ultimate destination quickly and efficiently and will offer exporters a cost-effective way of transporting bulk cargo from Tirupur.

 

Looking toward The Future

      Back in 2012, Bengaluru airport authorities had pointed out to ACNFT that with competition rising, more avenues needed to be tapped to boost cargo volumes. In fact, teams from the airport had gone to Tirupur and Ambur, also known as the Leather City of South India (distance from Ambur to Chennai is 185 km, while it is only 165 km to Bengaluru), to find out the feasibility of starting bonded trucking services to the airport.    

 

How It Works

      Today, with the bonded trucking facility, custom clearances have become faster.
      The consignments are booked in Tirupur and taken directly to the airport in Customs ‘sealed trucks’ the airport authorities arrange, where they are then put on to the flight.
      According to the airport cargo authorities, the bookings received for the bonded service were encouraging and there had been queries to start services from other destinations as well.

 

Count Delhi In

      Like the GVK-operated Bengaluru airport, the GMR-controlled Delhi International Airport, too, has a bonded trucking service. The maiden initiative started quite some time ago. The partnership between the privately controlled airport and the government-owned Container Corporation of India, or CONCOR, sees goods moved between the Inland Container Depot (ICD) in Kanpur, 500 km and a seven-hour road journey from Delhi, to the Indira Gandhi International Airport.

Pradeep Panicker, Anand Yedery and Sanjiv Edward

 

Pradeep Panicker

      According to Pradeep Panicker, Chief Commercial Officer-Aero of the airport, the launch of such a facility was yet another move to meet the growing demand of the cargo industry emerging from Tier-II cities. “It does not just cut down on the cost and time involved in shipping, but also reduces the multiple handling of the air cargo.” He emphasized that airlines would now be accepting cargo at the ICD, thereby “ensuring better protection and minimal transit risk of the cargo items.”

 

Sanjiv Edward

      Sanjiv Edward, Head Cargo Business at Delhi Airport, mentioned that the launch of the bonded trucking services was part of a vision to make Delhi a successful cargo hub. Import Bonded Trucking was one of the initiatives that would help Delhi realize its vision. “Bonded Trucking is a logical complement to air connectivity and we are confident that it will prove to be a boost for the cargo industry in the long run,” said Edward.

 

Anand Yedery

      The first carrier to use the bonded trucking service was Cathay Pacific. Anand Yedery, Regional Cargo Manager – South Asia, Middle East & Africa, said that the bonded trucking initiative would “help us provide end-to-end solutions to our customers in our offline ports.”
      The service, he said, had certainly assisted Cathay Pacific Cargo to serve as the one-stop shop for all cargo solutions.
      He was certain that the service would help “to further strengthen our position in the North India market.”
      The concept of dedicated bonded trucking is not new.
      However, it is only now that it has taken off. Its growth remained stunted due to a lot of reasons and policies.

 

India Bonded Trucking On The Rise

      A major constraint was the multiple formalities at airports. Industry stakeholders ACNFT talked to were of the opinion that bonded trucking would grow when more carriers start operations in India.
      Today, with the customs department working round the clock, cargo movement has improved dramatically. It is in such a situation that more Tier-2 and Tier-3 cities will be able to utilize bonded trucks to send out export goods.
      Reminds of us of a song…
Tirthankar Ghosh

Tony Bennett Rags To Riches

 



Vijay MallyaVijay Grounded… The Westminster Magistrates Court in London was the venue on Tuesday, April 18, 2017, as Scotland Yard apprehended Indian business tycoon Vijay Mallya on behalf of authorities in India, where he is wanted on charges of money laundering. The bank demands that he pay back more than a billion dollars in loans extended to his now-defunct Kingfisher Airlines. Vijay reportedly made bail ahead of extradition proceedings.
Geoffrey

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Sean and Ian McCool
     Air cargo great Sean McCool (pictured here with his son Ian in Dublin at the FIATA World Congress last year) was honored in Ireland last month at the 8th Annual Logistics & Transport Awards Gala for his role as a true pioneer in Irish transportation.


Seaboard & Western To IAM

      Today Sean McCool is Chairman of International Airline Marketing Limited (IAM).
      Sean established IAM in 1989; it is Ireland’s largest Air Cargo General Sales and Service Agent (GSSA), responsible for over 20 percent of all airfreight traffic from Ireland.
      Now a father and son team, IAM serves American Airlines, Etihad, Air Canada, All Nippon Airways, and South African Airways.
      Sean’s career began in the 1950s at Seaboard World Airlines (his first airline job). He later moved on to Brinks (who he introduced to Ireland) and Aer Lingus commercial cargo, where he was responsible for the establishment of the cargo operation in Ireland and Europe.
      Between 1960 and 1964 Sean participated as an Aer Lingus Executive on the Marketing Committee of the Confederation of Irish Industries.
      Sean is a founding member of the Irish Air Cargo Institute and the Irish Institute of Freight Forwarders (IIFA), where he was awarded an Honorary Fellowship for service to industry.
      He is a former Council member of FIATA, the Irish Exporters Association, and a past VP of the European Confederation of National Freight Forwarders’ Associations (C.L.E.C.A.T), a consultative body to the EU Commissioner of Transport.

 

Garrett McClean and Sean McCoolNo Job Too Small Or Large

      “My first airline job was at Seaboard World Airways, the pioneering all cargo airline that served Ireland from New York,” Sean recalled.
      “I was responsible for both sales and operations and on call around the clock,” he said.
      “I’d call the cargo terminal from home every morning before the night shift left to make sure the transfers had been made.
      “Sometimes, after the flight came in, I’d get a call in the middle of the night and go out to the airport to help sort the shipments.
      “It was all-hands-on-deck back in those days,” Sean remembered.
      “On the sales side, I spent a lot of time contacting forwarding agents here in Ireland.
      “There weren’t too many of them back in those days,” Sean said.

 

Out On The Road In A People's Business

      “I would also spend several days a month out on the road converting surface to air.
      “That was tough work and could take months, maybe even a year before a shipper would even pay the slightest interest.
      “It was the toughest kind of selling,” Sean McCool recalled.
Geoffrey


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