SHORT SHOTS

Lavazza’s coffee lifts KLM up
Coffee gives most of us a boost. Italy’s Lavazza coffee is due to give KLM Royal Dutch Airlines a special lift as the two companies signed an agreement on 05FEB20 to cooperate in KLM's corporate biofuel program. This program is focused on improving the airline industry’s footprint by pushing for sustainable aviation fuel (SAF), since it has the potential to reduce carbon emissions by up to 85% compared to fossil fuels. KLM is currently the only European airline using sustainable fuel on intercontinental flights and has been working on SAF since 2011. In MAY19, the company committed to developing and purchasing 75,000 tons of sustainable kerosene per annum over the next ten years, making it the world’s first airline to invest in SAF on a large scale.
KLM only sources sustainable aviation fuels based on waste and residue feedstocks that significantly reduce the CO2 footprint and do not have a negative impact on food production or the environment. Lavazza, as the first Italian company to support KLM’s Corporate BioFuel Program, announced that it had joined the “CEO Carbon Neutral Challenge” on 20JAN20, and has decided to collaborate with major organizations aiming to fulfill sustainability objectives. Both Lavazza and KLM believe that progress in these objectives can only come about if all players across industries come together and instigate change.

Air freight rates from China likely to rocket
Predictions are that once production in China is up and running again, air cargo rates may increase by as much as 300-400% prior to passenger flights taking up service again, providing belly access (see also our separate report in this CFG issue). Many passenger airlines have halted flights to the end of February, some for the rest of the winter flight schedule at the end of March, whilst cargo airlines are updating their services on a day-to-day basis, though on average 50% of cargo capacity has been cancelled. Meanwhile, Chinese factories are likely going to resume manufacturing from next week and will slowly ramp up as March approaches. Given that factories have been idle recently – due to production traditionally being halted in the two weeks prior and two weeks after Chinese New Year’s Eve (which fell on 25JAN20 this year) – there has not been much cargo in the market, so the virus impact on air freight has not been quite as disruptive as it would have been, had manufacturing continued. At this point, it is difficult to predict how quickly production in China will recover, and depending on its speed, there may well be a serious shortage of cargo capacity, reminiscent of the difficult global situation back in 2010 after the fallout of ash from Iceland’s volcano partly halted air traffic for weeks.

AEI to convert two MD-83SF to freighters for Aeronaves TSM
Aeronautical Engineers, Inc. (AEI) announced on 03FEB20, that it signed a contract to provide Saltillo, Mexico-based Aeronaves T.S.M. S.A. de C.V. (TSM) with two additional AEI MD-83SF freighter conversions. Aeronaves TSM AERONAVES TSM, S.A. de C.V., which was founded in 1995, provides customized solutions both for air cargo and passenger transportation throughout the Americas. It currently has a very mixed cargo fleet, and the two MD-83SFs will bring their MD-80SF series fleet up to 14.
Work will start on the first MD-83 (MSN 49945) in March 2020, while the second MD-83 will undergo modification from November 2020. In both cases, touch labor will be carried out by Commercial Jet’s Miami, Florida facility, which is an authorized AEI Conversion Center. They will be fitted with Ancra cargo loading systems (CLS) capable of carrying 12 88” x 108” Containers/Pallets. The reliability ensured by the AEI converted MD-83SF, will enable TSM to keep their aircraft “In the air, generating revenue.”

U.S. secures 7th freedom rights in Kenya
On 05FEB20, Kenya and the U.S signed an amendment to the U.S.-Kenya Air Transport Agreement at the U.S. Department of State in Washington, D.C. This amendment, initially negotiated and documented in the bilateral Air Transport Agreement on 04DEC19, adds seventh-freedom traffic rights for all-cargo operations to the bilateral agreement, and will become applicable once diplomatic notes have been exchanged. Then, U.S. all-cargo airlines will be allowed to fly between Kenya and a third nation without stopping in the United States. This is an important right for carriers operating a cargo hub. Kenyan all-cargo carriers also have reciprocal rights to serve the United States. This is another step towards fully opening the included nations’ air cargo service markets to one another, facilitating the liberalization of Africa’s international civil aviation sector, and providing air carriers greater flexibility to more efficiently meet the needs of their cargo and express delivery customers.

The name is DHL, Official Logistics Partner DHL!
For the fifth time since 2006, and its Casino Royale kick-off, DHL logistics has completed its “Excellence. Simply delivered.” mission, and transported film and stunt equipment around the world for the newest and 25th James Bond film: “No Time to Die.” The film, which is coming to cinemas from 02APR20, features unique props such as Bond’s legendary Aston Martin, and was shot in various locations including Norway, Jamaica, Italy, and all over the UK. UK-based EON Productions, which has made all the James Bond films since 1962, again counted on DHL to ensure that these props, along with costumes and, for example, underwater filming equipment, were all carefully inventoried and sent to the right locations in time for each shoot.
Commenting on the prestigious project, Frank Appel, CEO Deutsche Post DHL Group, stated, “Timeliness and precision are crucial for blockbuster productions of this magnitude. Thanks to our international network and the well-orchestrated processes carried out by our respective air, ocean, and road freight teams, DHL is positioned to fulfil those requirements and accomplish such an extraordinary project. We are proud to have supported the famous Secret Service agent on his mission to save the world for the fifth time.”

Brigitte Gledhill

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