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#INTHEAIREVERYWHERE |
Vol. 20 No. 37 | Wednesday
September 29,
2021 |
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Now everything flies between Lyon, France and the world,
and to hear Qatar Cargo tell it, the carrier, has struck gold with its
service. |
“As the ports of Los Angeles and Long Beach go from bad to worse we now have LAX at a near breaking point with airfreight storage in some cases costing at 24 hours after arrival in excess of $1.00 kg per day. “Hang on as this is going to get much more chaotic before it gets better.” The speaker is Peter Lamy, President of Intelligent Supply Chain Management (iSCM) and American Worldwide Agencies (AWA) based in Hawthorne, California. Peter Lamy was raised in the cargo industry—his father, the late Donald Lamy was an air cargo pioneer as North American Director of Air New Zealand Cargo. Peter took his first airline job on the ramp of Flying Tigers in the early ’80s. Over the years, he has managed airline cargo operations at the LAX airport for carriers such as Braniff, Amerijet, and Aeromexico. “We have seen this all unfolding in slow motion over the last 12 months, forwarders have been struggling to shield their customers from the reality of limited space, increase demand and increasing costs. “While retailers,” Peter said, “knew there have been issues they seem to only be hitting the panic button now. “Like the seaports we now have our international cargo airports in total disarray and over capacity with little or no off airport CFS’s to offer any relief. “Also as airline ground handlers implement those aforementioned storage charges has come huge risk to handling import air cargo for non-asset-based forwarders. “What can be done is going to be a struggle, we just don’t have the cargo facilities in place to absorb the influx of cargo at our passenger airports. “In terms of looking for other facilities, for years these offline airports that were once military bases have tried to convert all cargo aircraft over to the facilities but have had limited success with the exception of carriers like FedEx, UPS, and now Prime Air (Amazon) the new logistics gorilla. “But former military facilities just don’t have the bonded capabilities and customs support needed to flick the switch and start accepting international cargo flights. “We think government could help ease the situation by allowing U.S. Customs to expedite cargo clearance and bonded facilities available away from traditional ports of entry as one solution. “We have no problems with the TSA, we have adapted to their requirements over the years and work closely with them with our CCSF that allows us to control our freight by consolidating and building ULD’s at our own facilities. While others ran away from the responsibility, we charged in the other direction by expanding our warehouses and our screening capabilities. “Too many forwarders have become brokers and abandoned their responsibilities of actually handling their cargo, as forwarders retreated to ivory towers and eliminated warehouses and trucks all while Amazon, FedEx and UPS keep investing in these assets and controlling their destiny. We at ISCM have taken a similar approach as the integrators, and opened our own facilities around the world,” Peter Lamy concluded. EPA |
A conference perk that we miss is the opportunity to dine with friends we don’t otherwise see often. One came to us recently when Austin-based airport planner Michael Webber (Mike) was in town assisting The Port Authority of New York & New Jersey on cargo efforts at Newark Liberty International Airport (EWR) and John F. Kennedy International Airport (JFK). At EWR and JFK, Webber has been interviewing cargo handlers and airlines about current operations and potential needs in the near and longer terms. Webber was reserved about details of his assignments from the Port Authority but expansive about cargo capacity needs of U.S. airports in general. Webber pushed back against some recent reporting. “If losses in tonnage by these airports were simply attributable to facilities, the beneficiaries would have been in the region. Massachusetts Port Authority Boston Logan is down 43% since 2000. Washington Dulles International Airport is down 48% during that period. Due in large part to its UPS regional hub, Philadelphia International Airport (PHL) has achieved a total (not annual) of 1% growth in twenty years. The losses at major northeastern gateways is more about the migration of manufacturing and other demand drivers. In perspective, the combined tonnage growth of Bradley International Airport (Hartford, CT) and Lehigh Valley International Airport (Lehigh Valley, PA) about equals the decrease at Allegheny County Airport Authority Pittsburgh for the same period. We're talking about much more than the influence of cargo facilities.” So, the state of U.S. airport cargo facilities is fine? “No. Cargo facilities at most U.S. airports are inadequate for what’s ahead! Since 2000, cargo improvements at most U.S. airports were almost nil until E-commerce and a pandemic sparked new interest. Resolving the gaps is far more difficult in mature markets where development comes up to the fences. Airports like Dallas Fort Worth International Airport (DFW) on 14,000 acres are rare. Most major hubs can’t open up another greenfield site.” So, what do you do? “I talk to the best sources available. I don’t delude myself into thinking that I know more about a specific handler’s business than the handler does. Every airport is different. The handlers are conducting a complex symphony out there and it’s different from building to building. In a constrained environment, some best practices are impractical and so they pivot to what is possible under the circumstances. As a consultant, I learn as much as possible about demand from the tenants and their service partners and I confer with airport staff about what’s possible from the capacity standpoint. In a constrained environment, you try to optimize the available resources and understand trade-offs.” Geoffrey |
FlyingTalkers |
In Queensland, Australia Sandra Pepper, the
Head of Education and Solicitor at Queensland Law Society facing a packed
Elder law conference at the Victoria Park ballroom opened her remarks:
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Elliott
Paige M.Econ, IAP |
Writing about Peter Lamy in this issue
came with the sad news that his father Don Lamy, a major factor in U.S.
cargo for many years died of leukemia on March 11, 2021 at age 84. In 1963 Don immigrated to the USA where
he immediately began a memorable career in air cargo. |
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Vol. 20 No. 34 Laurent Bernet—A Life Well-Lived Nothing To Lose But The Wait First From New CNS President Brandon Fried & Willie Walsh AA Cargo Lauds CNS More From CNS Chuckles for September 7, 2021 Airline Problems Before COVID National Aviation Day |
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Publisher-Geoffrey Arend
• Managing Editor-Flossie Arend • Editor Emeritus-Richard
Malkin Film Editor-Ralph Arend • Special Assignments-Sabiha Arend, Emily Arend |
Send comments and news to geoffrey@aircargonews.com 100% Green |