Lifting To Million Tons

      Occasional FlyingTypers contributor and a cargo consultant whose clients have included Los Angeles World Airports (LAWA), Michael Webber observed that LAX finished 2016 with just under 2 million metric tons of total cargo, just below its historical peak (calendar year 2000) annual air cargo tonnage. As with most U.S. international gateways, LAX has enjoyed double-digit growth in international cargo since 2000, but has been insufficient to cover larger double-digit domestic cargo losses.
      LAWA recently commissioned a study of its air cargo capacity and plans to release a Request for Proposals in 2017 for new facilities development, but must do so in a land-constrained environment in which any cargo improvements will require displacing some existing activity, thereby requiring a temporary “pivot position” where tenants waiting for new capacity could operate. Decades of development around one of America’s most historic aviation gateways have resulted in congestion that causes daily standstills on roadways in surrounding neighborhoods. Upon completion, the ongoing Landside Access Modernization Program (LAMP) should ease LAX’s congestion issues, but construction will cause additional challenges before improvements.

Chicago Broader Shoulders

      The Chicago Department of Aviation’s Chief Planning Official Adam Rod described Chicago O’Hare International Airport’s (ORD) cargo expansion previously detailed in FlyingTypers. He noted this expansion was not originally part of ORD’s most recent Master Plan, but ORD is one of the rare U.S. gateways with net positive cargo growth. Increasing congestion and decreasing available capacity necessitated completion of a new cargo campus on ORD’s northeast airfield (the old military area) in late 2016. The goal was to add 50 percent more capacity in warehouse and ramp.
      Today, ORD has a total of 2 million square feet of airside warehouse space with 40 parking positions for jumbo freighters. For future growth, ORD’s new cargo campus still has enough capacity to accommodate another phase when demand requires. Other new single-tenant facilities developed for FedEx and belly cargo carrier United on ORD’s south airfield complement the massive multi-tenant cargo facility on ORD’s northeast airfield. Several panelists noted that airport operators must manage brick-and-mortar developments with a planning horizon measured in decades, on behalf of tenants whose main assets are portable and whose planning is often measured in months. However, the Chicago Department of Aviation is confident that its cargo improvements should position ORD very well for the future. Still, Mr. Rod acknowledged such ongoing operational issues as maximizing connectivity between the terminals (belly) and north and south (freighter), better ramp control, and truck staging—a concern when a seaport strike in Southern California spiked freighter traffic at ORD.

Pineda Miami Presentation

      Manager of Aviation Trade & Logistics for the Miami-Dade Aviation Department (MDAD), Emir Pineda represents Miami International Airport (MIA), where international cargo accounts for roughly 87 percent of total cargo. Contrasting with widespread deficits among other U.S. gateways, MIA has been relatively prosperous with more than 20 percent growth in total cargo since 2000. While LAX, ORD, and JFK split air cargo trade with Asia and Europe into relatively equal shares, MIA thoroughly dominates trade with Latin America and seeks to leverage that role to serve as Europe and Asia’s gateway to Latin America as well.
      MIA’s initial success with Latin America derived from favorable geography, but Pineda left no doubt that its continued dominance owes much to sustained effort. MDAD does “Perishable Road-Shows in key markets abroad for exporters who use MIA to access the U.S. market, as well as supports half day seminars for Miami’s international trade community (including regulators) highlighting proper clearance procedures, security, handling, and fumigation. Expanding beyond its traditional cut flowers, fruits, and vegetables among perishables, MIA became the first U.S. airport designated as a Pharma Hub in IATA’s Center of Excellence for Independent Validators (CEIV) program, with six local companies initially participating. MDAD has also worked with regulators and local seaports to initiate ocean-to-air transfers with the first transshipment from Port Everglades trucked to MIA and then carried to Amsterdam by Centurion Cargo.

And Then There Is Dallas

      Vice President of Airline Relations and Cargo Business Development for Dallas Fort Worth International Airport (DFW) Milton De La Paz represents an airport ranked among the top ten U.S. airports in annual cargo tonnage, but even higher (top five) in annual passengers and aircraft movements. DFW gets substantial contributions from the belly cargo operations of hub carrier American Airlines, as well as a regional hub for UPS, but has experienced much of its recent growth from new and expanded service of Asian, European, and Middle Eastern carriers. DFW seeks to serve as a bridge between Asia and Latin America.
      This coming summer, DFW will welcome a new cold chain facility operated by AirLogistix USA—just in time to accommodate growth anticipated from DFW’s participation in IATA’s CEIV program. American Airlines opened an improved temperature-controlled facility in recent years largely targeting the same sector for its own customers. Ultimately, DFW intends to establish a “Cargo Community” (based on the BRU Airport model) to efficiently provide stakeholder feedback both for ongoing operations and future improvements. DFW is also using a cloud-based data tool called Air Cargo Workbench to assist in cargo planning and marketing.
      This session was not only good for the attendees and also this reporter, it stands as a template for the endless event sessions yet to take place during 2017.

Q&A Short & Sweet

      During the Q&A period, the panelists observed that even at airports such as theirs, cargo must contend with competing priorities. Elucidating for airport directors and commissioners that contributions from cargo are critical to sustaining transcontinental flight schedule sustainability can elevate stature. Local events in which airport operators have worked with CNS and IATA, as well as with the Airforwarders Association, have been helpful in garnering greater interest in cargo from public agencies. Airport operators welcome the participation and cooperation of CNS in helping to refine cargo priorities.
Geoffrey

   “We are experiencing consistent growth each year in the air freight of pharmaceuticals and healthcare products globally,” Qatar Airways’ Chief Cargo Officer, Mr. Ulrich Ogiermann said adding Colombo Sri Lanka, and Republic of Ireland to the carrier's pharma network that now accounts for 73 destinations under the QR Cargo pharma umbrella.
   “We support expanding pharma businesses,”Uli points out:
   “Our partners get a seamless cool chain offering uncompromised attention to detail and service.
   “Also Irish shippers can skip trucking their freight from the Republic of Ireland to United Kingdom with door-to-door service. saving both time and money,” Uli beamed.

   In Session . . . Tuesday June 6 focus “Air Cargo & Airports” highlighted by Atlanta HJ Intl’s Elliott Paige and Landrum & Brown’s Dan Muscatello and others. Airforwarders Conference June 4-6, 2017 at Renaissance Orlando at SeaWorld. For more click here.

   Emirates named Abbas Haji vice-president of hub operations for SkyCargo operations in Dubai at both Dubai International Airport and Al Maktoum International Airport.Haji joined Emirates Group in 1977, working for dnata cargo, having joined SkyCargo in 2008.

   Brexit Looming . . . Chartered Institute of Procurement and Supply (CIPS) President Gerry Walsh declares:
   “The reshoring of British supply chains in advance of Brexit comes with significant challenges,”
   “Pessimism apparent when it comes to managing the financial costs of Brexit.
   “More than a third (36%) of UK supply chain managers plan to respond by pushing supplier costs lower, while 11% admit that part of their operations may no longer be viable.
   “Worldwide 67% of respondents felt that the uncertainty surrounding international trade agreements were making long-term plans difficult to confirm.
   “We have already seen high profile disputes between British retailers and their suppliers as a result of currency fluctuations.
   “We now know that this pattern is being replicated across the UK and is likely to escalate.”

   Really Big Show . . . Summer means air shows worldwide and one of the best EAA AirVenture Oshkosh 2017 takes place in Wisconsin USA.
   This time NASA Astronauts from most of the Apollo missions that put humans on the moon for the first time are expected to be at EAA AirVenture Oshkosh 2017 to commemorate the 50th anniversary of the Apollo program.
   Set to appear is Frank Borman who piloted Apollo 8 in the first flight around the moon.
   Later Frank would follow his hero WW1 USA fighter ace Eddie Rickenbacker as CEO of Eastern Airlines, during a time when that airline was amongst the biggest carriers in the world.
   Oshkosh for a pilot provides an ultimate thrill, as there are very few feelings like “rocking your wings,” and landing on one of the colored runway dots at EAA AirVenture Oshkosh.
   The event with aircrafts of every description, kids and dogs and campgrounds and memories by the bushel goes from July 24-30 and is open to all.
For more click here.

   Thinking a moment about Eastern Airlines Cargo we recall inventive VP Cargo for the carrier Jerry Schorr (above) who, noting limitations of routes aircraft and resources, came up with a nifty one-way container branded “Costcutter” that invited shippers to “fill it up and we will ship it”.
   Jerry was always a thinking man’s air cargo pioneer. Authored “Logistics in Marketing” making the case way ahead of everybody in 1969.
   At EAL (same time as Frank Borman) Jerry moved to coordinate air cargo with a truck delivery system to compete with United Parcel Service for long-distance surface shipments weighing up to 70 pounds in 1987 . . .