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   Vol. 23 No. 34

Wednesday August 14, 2024

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Kale Logistics Clear View Istanbul

Jeffrey van Haeften

Jeffrey Robin van Haeften is a distinguished professional with a robust educational journey, which includes the IMD in Lausanne, the London Business Schooland the Nyenrode Business University. Senior Vice President of Cargo Commercial Worldwide at Emirates SkyCargo, Jeffrey is responsible commercial vision and strategy for the cargo division. Prior to his tenure at Emirates, Jeffrey held key positions at CEVA Logistics and DHL Global Forwarding, both enterprises in leading positions within the freight forwarding community.

     FlyingTypers engaged Jeffrey van Haeften in a conversation spanning through success (obviously) and second thoughts: it all started from explaining the possible confusion about SkyCargo’s role in Logistics and its importance.
     This is what van Haeften’s wanted to express in this regard to the layman and/or the newbie, possibly imagined as his younger self: “'The World Works Better with Emirates SkyCargo' is Emirates’ most recent advertising campaign, highlighting the crucial role of air cargo in making the world a better place: putting brides and would-be fiancés, patients and doting family members, pet-owners and children, all front and centre of the scene to help the public understand the essential role logistics plays in their lives every single day, and the significant impact an organization like Emirates SkyCargo can have all over the world. Working at Emirates SkyCargo, a leading partner for the world’s supply chains, is one of the most exciting, direct ways of making such experience. Maybe it does not always start as a bed of roses, but . . . embracing the temporary discomfort of something new, broadening your perspective and stepping outside of your comfort zone are essential. This is the advice I offer to those who are just joining the industry. This is an essential skill in life, not just in our business.”
     FT was impressed by his interlocutor’s enthusiasm with regard to air cargo, in particular considering Jeffrey’s background in the forwarding sector. We mutually observed that globally the logistics industry grapples with a scarcity of labour, which will dictate the needs of the future in a landscape where the situation seems unlikely to improve.
     “The potential deployment of AI-powered robots to work in warehouses could solve the current workforce challenges. On the other hand, by introducing innovative technology and elevating our facilities with cutting-edge tools, we will attract the best talent on the market. There is a growing need for technology and digital tools to help accelerate air cargo and streamline global supply chains. AI and machine learning algorithms offer opportunities for air cargo companies to refine route planning, implement predictive maintenance strategies for their fleet, and improve overall operational efficiency. Such technologies can also help monitor environmental conditions, such as temperature and humidity, in real-time. This ensures the safe transportation of sensitive cargo, such as pharmaceuticals and perishable goods, while also providing valuable data insights for continuous service improvement.”

Jeffrey van Haeften


     FT was enthralled by the relative ease with which his guest was handling complex situations and his suggestions, which clearly showed optimism and forward thinking. Diplomacy, collaboration and decisive decision making were identified by van Haeften as the legacy he received from the business leaders he had worked with: “convincing but also open to being convinced, remaining open to the perspectives and opinion from different people and welcome a healthy debate, as long as all interactions are underpinned by respect.”
     After the scene setting it was high time to talk about figures and plans for the future:  “Having looked at the first part of 2024, it has already been an impactful year for Emirates SkyCargo. The offering remains in demand, with longstanding and new customers valuing the innovative product portfolio of Emirates’ extensive global widebody network and world-class capabilities. In the last financial year SkyCargo moved 2.2 million tonnes of cargo worldwide, meaning it continues to outperform the market, on track to surpass this figure in this financial year, with healthy load factors across the network. SkyCargo’s largest business unit by tonnage is perishables, with an average daily uplift of 900 – 1,000 tonnes of fresh fruit, vegetables, flowers, etc. Likewise, demand for Life Sciences and Healthcare cargo remains steady, and this is reflected in our data, an average 2,000 tonnes a week.
     “Both cross-border e-commerce will continue to grow significantly. Not only do consumers expect their goods to be delivered swiftly, it has also accelerated the typical product cycle with manufacturers and distributors looking to restock their shelves on a weekly basis, rather than monthly. This also contributes to an increase in demand. As production powerhouses in e-commerce and high tech goods demand from the Far East as well as South and West Asia, transporting cargo through Dubai across the globe, particularly into the Middle East, Europe and the U.S. makes business sense. The hi-tech product cycle tends to be approximately 3 to 4 years, but given the latest developments in technology, including AI, we expect to see an increased demand for these goods this year.”

Emirates 777F


     For IATA, May marked the sixth consecutive month of double-digit year-on-year growth for global cargo demand. “As we continue to outpace the market, having analysed the data as far back as 2023, we anticipated this trend and adjusted our freighter schedules accordingly to ensure we could facilitate our customers’ needs,” was the inevitable conclusion.
     In this picture, van Haeften shared his standpoint regarding his fleet and network: “We have laid out our 10-year strategic roadmap that will see us double our capacity and add 20 new destinations to our global network: our focus in 2024 and beyond is clear. With a view to addressing the current capacity constraints, we announced an order for an additional 5 Boeing 777 freighters to be delivered between 2025 and 2026, increasing available main deck capacity by 30%. This is in addition to the 5 777Fs on order and the 10 777-300ERs that are being converted into freighters, marking a huge leap forward in our 10-year plan to double capacity. In the first half of the year, we returned to Phnom Penh, Cambodia and launched to Bogota, Colombia with passenger services, creating more efficient ways for our cargo customers to access both markets. By the end of the year, we will have restarted operations to Lagos, Nigeria; Edinburgh, Scotland; Adelaide, Australia and launched to a brand new destination, Antananarivo, Madagascar.
Emirates Delivers      “Likewise, the bellies of our aircraft are full going into Europe, even into secondary points such as Oslo, Bologna and Venice. Via our road feeder service, we are able to extend connectivity and transport cargo via truck to its final destination, which creates more options for our global customers.”
     FT jokingly contended that considering Venice a secondary point was a bit of a luxury, and wanted to know more from Jeffrey with regard to the product developments. “From a product perspective, we launched Emirates Delivers in Saudi, providing fast, reliable and cost-effective international delivery from the UK, US and the UAE. The Middle East has historically been underserved when it comes to reliable online delivery solutions and, harnessing our global network, widebody fleet and frequency of the flights, we can scale Emirates Delivers to address this gap.
     “Since our inception, Emirates SkyCargo has been a facilitator for global trade. As the cargo arm of the world’s largest international airline, we leverage Emirates global network of over 140 destinations across 6 continents to transport goods to all corners of the world. With every new and unique destination added to our network, we improve trade flows and generate new, reciprocal business opportunities that help strengthen global economies. At our hub in Dubai, we operate two world-class cargo terminals, with extensive cool chain capacity, including the world’s largest, EU GDP-certified pharmaceutical hub, enabling us to transport even the most sensitive cargo safely and reliably. Harnessing the technical insight of our experts and customers, we have developed tailor-made solutions for highly specialized transportation needs, assuring our customers that their cargo will be handled with purpose-fit attention throughout its journey.”
Emirates Lightbox     The picture before our eyes could not look rosier, and how soon do we forget the dire straits when we look at the wide placid ocean in a clear summer day . . . “Out on the water, we can see our true selves" wrote John Steinbeck many years ago. We have actually been on a pretty rough ocean for quite some time, not so long ago, as we all remember. FT wanted to test our interlocutor on this point, as we all know airlines had their own dire straits between 2020 and 2022. “Is there emerging a need for an enhanced standby plan to deal with crises?” was our question.
     “One of the most valuable business lessons we learned during the COVID-19 pandemic was the importance of remaining nimble, which allows to pivot more seamlessly when needed. This is true for a geopolitical disruption or a pandemic, but equally true for something banal, but more common, such as changing trade patterns or customer behaviours. While some might be intimidated by these changes, we have over 30 years of facilitating global trade. Over the decades, we have seen peaks and troughs, driven by macroeconomic and geopolitical issues. However, we understand that it is important to look at the big picture and ensure short term blips do not negatively impact the medium or long term. We are confident in the long term growth of the global market and air freight’s essential role in keeping goods moving. Striking the right balance between having a long-term 10-year blueprint, while still being flexible enough to adapt to an ever-changing world is a careful dance, but we have the right processes, the right expertise and most importantly, the right people at Emirates SkyCargo, who are always ready to rise to a challenge and achieve great things.”
     In closing FT could not avoid asking our guest what his view on the relationship between forwarders and airlines was, considering his prominent background with CEVA and DHL, in particular after publishing our straightforward 'All about CASS' article a few days back. There we saw Jeffrey van Haeften’s diplomacy in action: “Absolutely, our strong and collaborative relationships with freight forwarders all over the world underpin our business. Our ambition is to solve the transportation challenges of different industries, and by working with freight forwarders, we can identify and address specific issues and create new products to cater to this, as we did with both Emirates Vital and Emirates Medical Devices.”
     Dear Reader, if you made it to this point, you are certainly a person who values the power of successful numbers, in particular in Air Cargo. The power of figures is clear for our readership and even outside, but let us say this time the figures were so big, and they could have made us all jealous. If you were able to contain your envy, well, you earned your reward: stay focused on the word “careful” and watch this wonderful class performing the Oshin Choreography.
GDA/Marco Sorgetti


Chuckles For August 14 2024

Jacques Leijssenaar

     Here is one of those increasingly rare people among us today who delivers a welcome amount of excitement, interest, energy and enthusiasm. After some words with the United Airlines Cargo Vice President Cargo Sales EMEI, based in Amsterdam it is clear that “Fast Jacques Leijssenaar has a pizzazz”, that’s what this effusive guy has . . .
     We shall give you “science fiction, double feature”, two sides of Jacques’s character, the elaborate accomplished airline spokesperson and the straight to the point Dutch guy who prefers to get the job done with few words.
     Jacques Leijssenaar is Vice President, United Cargo EMEIA for United Airlines. He is responsible for all aspects of United Cargo's activity in the EMEIA region and plans and directs the work of United Cargo's team of sales, operations, and revenue management professionals in the region.
     Time ago, right out of the gate, Jacques said something all of us should perhaps hear again, or for the first time: “It’s not about whether a dime on the ground is worth your effort, it’s about whether you are willing to pick it up and make something out of it. If you sit in the office all day waiting for the phone to ring, pretty soon you’ll be out of business!”
      If you think that Mr. Leijssenaar comes out of the chute at a full gallop for United Cargo, you would be right. Top priority for UA Jacques as Autumn approaches and he keeps an eye on Summer 2024 is always getting close to the customer: “My top priority is to talk, talk, talk with our customers. To connect with them as often as possible to learn how we can be of the most benefit to them, and of course be available for them whenever they need us. The number one rule of creating and maintaining a great cargo business is to deliver what you promise. We keep on saying yes and we will adapt quickly to changing market dynamics. I hope that we have a clear image in the market: we are approachable, solution driven, we price market conform and we deliver what we promise. In our customer/forwarder/airline model, none of the three parties are more important than any other, and the model isn’t viable unless all three work together and respect each other’s role.” Sante Parole (holy words), a friend of mine from Turin would say!
     “Yes, I believe in the traditional relationship. All our business is currently forwarder driven. Export and import are complex processes without uniform global rules or regulations, where forwarding expertise is crucial. Anticipating on environmental pressure, consolidation will be more crucial than ever.
     “As international shipping grows more and more complex, it’s vital to have experts involved that can coordinate all the details for customers—specialists that know all the nuances of documentation and regulation. In addition to playing that role for customers, of course, forwarders’ consolidations allow customers to benefit from attractive rates they could never obtain themselves. Collaboration Is Key!” Another title for the FT? Who knows?
     “From the airline perspective, I really appreciate the collaboration of forwarders and their 24/7 service mentality. I know how we work together every day on countless shipment issues of which customers are not aware: because we solve it together before it becomes a problem.”
     United Cargo business developed in 2024 and the rest of the year could see differences in different regions. “The European carriers channel more Asian freight via their hubs into the U.S., so the traditional capacity surplus in summer has a stabilizing effect. I also expect that freighter capacity will be swapped to the Asian routes for the winter period. We expect that the south European countries will keep on developing further where the north European markets staying flat. We notice an increased number of big projects, originating from ocean freight. We enhanced our commercial desk to accommodate these requests.”
     Talking of successes, new destinations, enhanced service offerings and impact of increased capacity.
     More questions, terse answers: United Cargo’s advantages in Europe? “Via pipelining we connect all our European stations and can offer limitless solutions.”      How have recent numbers impacted your thinking? “The market is relatively stable considering all the negative impulses in Ukraine and Israel, but we are alert. The PMI’s are positive.”
     Can air cargo help others? “We proofed we could adapt very quickly during COVID. Especially in crises situations there is an immediate need for airfreight.”
     How About The Next Generation: “We’re competing with every other industry for talented and ambitious people, so we need to take steps to make air cargo an attractive choice. The top people entering the workforce these days, or those looking to make a career move, want the responsibility to create change and the power to make important decisions. The days are over of joining a company or an industry when you’re young and working at it full-time until retirement. Many new talents want the option to choose which temporary assignments they will accept and to ‘rent themselves’ to several customers at the same time. I think our industry needs to be open to this attitude to attract the most creative thinkers. I like people who are curious and dare to take risks. My motto is: there is always a solution and you will be surprised how many people are willing to helping you when you try to do good.”
     Keep The Change: “Digitalization will help the industry advance, but I notice a trend in the lack of knowledge of air cargo principles. Given the pressure on labour we should also focus on robotization and standardization in the handling process. In my opinion, airfreight will transition to a new way of selling services. In place of the current design of products with fixed features will be a base service with an ‘à-la-carte’ menu of add-ons. This will be directed by new shippers for whom the present product offering is too rigid—those who want to combine elements in ways not possible now. Starting from the base product, extras will be available like expedited routings, pickup and delivery, enhanced monitoring with on-board devices, elevated security protection, etc. The airlines’ challenge will be designing their offering, then delivering it operationally so that each customer will get exactly the services they book. Just keep everyone in the loop and deliver the news, good or bad, before someone else does. Pick up the phone, pay a visit, and be up front at all times—that must be the baseline policy. Also, when things work, be sure and give credit where credit is due,” Jacques insists.
     On the Table: “It’s about what UA brings to the table for shippers. We always have a solution!” Fast Jacques said. “Our people are dedicated and care about their business. Of great benefit is United’s extensive network, where we can offer direct service between all major European cities and the USA. Look, we understand fully that our service must not only meet, but exceed the need. Also, that United Cargo must deliver as promised and be very transparent up and down the line for everyone. Our customer experience is geared to work as near to perfect harmony as possible, with situations including delivering to market against the most strenuous deadlines, no excuses.”
     What Can Air Cargo Do Better? “Creating responsibility in the job and empowering people to make decisions is a rule air cargo should live by. Air cargo in the 21st century will continue to develop even more as an ‘à-la -carte menu’ of fixed products, services, and features. Air Cargo needs to continue creating responsibility in the job and empower people to make decisions. Also, I believe that currently in some quarters air cargo product offerings are too rigid. The challenge is to be flexible operationally so that the customer gets and pays for exactly what is booked. All of this takes talent and imagination and long-term determination to do whatever it takes to be a dependable, expansive air cargo resource.
    “And that,” Fast Jacques assures, “is United Cargo baseline business every day.” If you were in Jacques’ shoes, what would else you say? So much for double feature science fiction, this is their business every single day of the week!
GDA/MLS

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India Levels Field For Cargo



Tom Bayes

     Some of our readers know we as a family have been particularly affected by the recent events in Bangladesh. We have intimate connections and we are still trying to understand how the situation will evolve to put our minds to rest. There is also a business aspect in this experience and this is the point we wish to make for our readers’ information.
     Reaching out to our contacts we happily received information from Thomas Bayes, (above) Vice President Asia at EMO Trans, Inc. Corp in Irving, Texas, who was among the first ones to reply. This is what he reported regarding the Asian country, which falls within his portfolio: “The Bangladeshi situation has affected our day-to-day operations over the past few weeks, with the curfews put in place, protests on the streets and the internet shutdown. With Bangladesh being a heavy ocean export market, the port of Chittagong is heavily congested at this time, and they are starting to see a buildup of vessels at anchor off the coastline. Factories had been shut down as workers were joining the protest as well as not able to get to and from the factories with the mass demonstrations.
     “The good news is that, as of now, EMO Bangladesh has reopened and is back to full operations, with internet being fully turned back on, and factories all reopened. As the interim government was being put in place, Nobel Peace Prize Laureate Muhammad Yunus was recently appointed as Chief Advisor and this is a significant window of hope for the future. Our team, under the leadership of our MD Noor Alam Siddique, did an incredible job during this difficult time to ensure that they could do everything possible, to have day-to-day activities on monitor for our customers.”

Hazrat Shahhalal International Airport

     So we hear that there has been some understandable anxiety, but the situation seems to be under control, if not back to normal. We took advantage of Tom’s politeness and continued our analysis asking for more information about the situation of his business. “Overall, for my Asian region we are very pleased with how things have been going for the first half of this year. We have had some challenges with rising cost, space availability and port congestions in most of the region, but we did all that was possible to ensure our customers were provided with the best possible service, along with competitive pricing. We are starting to see the port congestions improving and rates slightly getting better over the past few weeks on the ocean side. However, on the air side the rates are holding strong right now. Going into the 4th quarter we will have to see how this trend holds up. We are also expanding in a few countries this month, specifically in China with our 11th Branch office opening, as well as our 7th branch office in India opening this month, and we will continue to focus on expanding our EMO Flag in areas alongside our customers’ requirements.”
     We cannot, but rejoice hearing the evident success of our friends in EMO Trans, in particular in an area that seems to have gone through changes that could have been more worrisome. Let us just wait for a few more days to say that “all’s well that ends well”, but this is our hope and indeed our expectation.
Geoffrey Arend


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Publisher-Geoffrey Arend • Managing Editor-Flossie Arend • Editor Emeritus-Richard Malkin
Senior Contributing Editor/Special Commentaries-Marco Sorgetti • Special Commentaries Editor-Bob Rogers
Special Assignments-Sabiha Arend, Emily Arend
• Film Editor-Ralph Arend

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