TIACA pacts with Clive Data Services
UPDATE - 9MAR20 - The International Air Cargo Association and load factor analyzer Clive Data Services have inked a MoU aimed at delivering accurate and timely air freight market and
2011 incepted and Amsterdam, Netherlands-based Clive claims that measuring load factors on weight utilization, as usually done, is a misleading figure. “The reality for the vast majority of widebody and freighter flights is that it’s the cargo capacity in cubic meters which is the limiting factor, not the cargo capacity in kilograms. Consequently, existing load factors, based only on weight, underestimate how full planes really are, and thus give a distorted picture of how the industry really is performing,” explains Clive Data Services’ Managing Director, Niall von de Wouw.
To shed light on the load factor issue, Clive has developed applications for better managing airlines’ and forwarding agents’ allocations. An approach, welcomed by TIACA, as the organization’s Chairman Steven Polmans states: “As part of the transformation of TIACA, we are promising to deliver more content to our growing membership - but only content of value to their businesses and which accurately represents and promotes the global air cargo industry. CLIVE’s dynamic load factor is registering a lot of interest because it breaks with tradition and is changing the way air cargo usage is measured based on the realities of today’s market. It is also the fastest source of data, which is also very appealing for our members.”
“Working with TIACA enables us to put our market intelligence in front of a large group of respected decision-makers, who we hope will embrace our new load factor methodology. This represents another important step forward in getting the industry to accept there is a new and more accurate way to measure how full flights are,” commented Niall van de Wouw.
K+N divests UK contract logistics business
UPDATE - 9MAR20 - Today, logistics giant Kuehne + Nagel announced the sale of major parts of its UK transport logistics portfolio to Connecticut, USA-based XPO Logistics. The deal includes the drinks logistics division, food services and retail & technology businesses, generating a turnover of approximately 710 million euros.
Detlef Trefzger, CEO of Kuehne + Nagel International AG, comments: “One year ago, we first announced the strategic review of our contract logistics business to improve profitability and focus on our core, scalable solutions. We have now reached a major milestone in this effort, having secured an agreement to sell significant non-core assets in the UK. With XPO Logistics, we are pleased to have found a good new home for our customers and employees.”
K+N emphasizes that the company remains committed to its remaining business units in the UK, retaining the industry verticals aerospace, government and pharma. These are amongst the Group’s scalable leverage areas, reads a K+N release.
Financial details of the deal were not disclosed by the parties. The transaction is subject to customary closing conditions including merger clearance by the competition authorities. K+N expects the transaction to be closed in the second half of this year.
Shailendar Kothari heads Jettainer Americas Inc.
UPDATE - 9MAR20 - In his new function, the manager is responsible for the operational activities and the expansion of the company's business in both North and South America.
"In Shailendar Kothari, we have been able to gain an internationally recognized freight expert with extensive operational and strategic experience and knowledge. He is well networked in the aviation and air freight industry worldwide," says Thomas Sonntag, Managing Director of Jettainer GmbH.
"I am very pleased that Mr. Kothari represents Jettainer Americas Inc. for North and South America and will successfully manage the company's business," Thomas Sonntag added.
Kothari is a true cargo veteran and a long-time Lufthansa Group member. Following his studies at the University of New Delhi, he gained initial experience in the aviation industry as Operations Officer at Pan American World Airways and Deutsche Lufthansa in the Indian capital city. Later he worked as Senior Ramp Supervisor at Oman Aviation in Muscat. Back at Lufthansa in 1993, he assumed leading roles in the Middle East, Asia-Pacific and since 2014 Germany. From 2017, as Director of Global Category Management, he took over responsibility for the procurement of all warehouses, aircraft handling services and logistics services of the group companies. Since March 1, he’s based in Delaware, managing the activities of ULD provider Jettainer in The Americas. In addition to Delaware, Jettainer runs offices in Dallas, Chicago, Miami, New York and Los Angeles.
heyworld says Hi to CHAMP’s TRAXON cargoHub
Lufthansa Cargo’s new, international, e-commerce logistics operator, heyworld, has chosen to implement CHAMP’s TRAXON cargoHUB for its digital data exchange. Opting for CHAMP’s cargoJSON format
with its modern API interface, the system integration took just a couple of days, and heyworld was then ready and able to immediately start business with a number of partners.
Timo Schamber, Managing Director at heyworld, stated: “As a new player in the e-commerce cargo sector, we are delighted to be part of an established community,” “By selecting TRAXON cargoHUB and using cargoJSON and API we were able to go to market in record time thanks to the speed of integration with our new systems and processes.”
Speaking on behalf of CHAMP, Laurent Jossa, Head of Sales – Distribution Services at CHAMP Cargosystems, also expressed his delight at the decision: “CHAMP is thrilled to be an integral part of e-commerce logistics operators, like heyworld” “Being part of the CHAMP family, it will be invaluable for both us and the e-commerce community. We wish them every success.”
With TRAXON cargoHUB, heyworld is now part of one of the largest air cargo communities. The platform offers electronic access to over 100 airlines and 3,000 forwarders, operating from 9,000 branches worldwide, and improves data quality and quantity throughout the supply chain, regardless of each customer’s IT configuration or system.
14th WCS postponed on account of corona
This week should have seen the air freight world convening at IATA’s 14th World Cargo Symposium in Istanbul, Turkey from 10-12MAR20, but the coronavirus unfortunately put paid to all the plans. IATA’s decision to postpone the event, was published on 03MAR20, and read: “Over the past few days, many of you have enquired about the status of the upcoming 14th World Cargo Symposium (WCS) in Istanbul due to the coronavirus outbreak (COVID-19). Although there have been no reported cases in Turkey, we have taken the decision to postpone the event.
Since the first outbreak of COVID-19 in mainland China, we have been monitoring the situation in Istanbul closely, working daily with local and international authorities. We have been following the WHO’s guidelines. However, there has been an increase in the number of participant cancelations over the past few days for reasons including company travel bans and senior delegates needing to stay close to base during the crisis, therefore, we feel that it would be best to postpone the event.
Further information will follow in the coming days regarding delegate, sponsor and exhibitor situations and consequential actions that need to be taken.
We are very sorry that this decision had to be taken but we are sure you will all agree it was the correct one and for the right reasons.”
At time of publication, no new date has yet been set, however with the increasing numbers of infected cases in countries outside China, including Italy as the largest hotbed in Europe at this point, most conferences will probably be moved to the third quarter or cancelled altogether. Interestingly, to date, no infections have been recorded in Turkey so far. Has it been fortunate to now, or is it following a similar hush-up operation to the early days in China?: https://www.cdc.gov/coronavirus/2019-ncov/locations-confirmed-cases.html
TLX Cargo’s coronavirus (COVID-19) viral barrier cargo cover
Early on in the coronavirus development, on 27JAN20, TLX Cargo, (part of TLX Insulation Ltd, a technology leader in cool chain fabrics), launched the world’s first cargo cover built from viral barrier material as a preventative aid in the fight against coronavirus.
Going by the name of “TLX WEB15”, the special fabric protects the cargo against viruses during transportation, after it leaves customer premises. Developed in cooperation with Web Dynamics Ltd, (a company with more than 20 years’ experience in manufacturing viral barrier materials), the TLX WEB15 is a breathable, waterproof, cargo cover built from viral barrier material which was rigorously and successfully tested by Nelson Laboratories in Salt Lake City, USA, (the world’s leading laboratory for viral barrier testing). The seamless cargo cover comes in 2 parts: a cover and a base, which is sealed with tape. The cover exhausts water vapor and prevents viruses of 0.1 – 0.2 microns from entering the cargo, thus ensuring virus-free transport, regardless of where it has travelled.
Airlines are grounding staff in response to coronavirus situation
Earlier last month, Cathay Pacific’s 33,000 employees were asked to take unpaid leave of 3 weeks between March and June this year, in an effort to help alleviate the major financial problems caused by the coronavirus situation. According to CEO, Augustus Tang, over 25,000 staff have agreed to do this, and he thanked them “for selflessly making your own contribution” in an internal memo. The airline has grounded 120 aircraft at the moment, given that around 90% of its China flights will be cancelled over the next two months, and it predicts that its financial results in the first half of this year will be ‘significantly down’ compared to previous year. Following on from a turbulent year of demonstrations, the coronavirus poses the next serious challenge.
Singapore Airlines has also temporarily suspended more than 3,000 flights, from February until the end of May, and its management team is taking a 15% pay cut. In addition, it too is offering a voluntary no-pay leave scheme to employees. Hong Kong Airlines has had to start making employees redundant, sacking 170 flight attendants just 24 hours after grounding a number of its flights, and looking to let around 400 of its 3500 staff go, whilst asking those remaining to also take unpaid leave between mid-February until the end of June.
Not just Asian carriers, which are looking at predicted revenue losses of around USD 27.8 billion this year, according to the International Air Transport Association, are having to take serious measures to cope with the knock-on effect of the crisis, but European carriers are now also following suit, with Lufthansa this week publishing its plans to reduce 50% of its flights and request staff to go part-time or take unpaid leave (more in: LH considers grounding A380s, halves flights).
EasyJet, have reported a huge drop in passenger figures, whilst FlyBe went bankrupt this week as corona was the final straw in its beleaguered financial struggle. Alitalia? Well… It would be a surprise if it makes it through this crisis on top of all its own ones. Airline shares around the world have taken a large dip over the past couple of weeks.
Air Canada Cargo’s new Brussels service
Starting 01MAR20, in addition to its existing Montreal (YUL)-Brussels (BRU) route, Air Canada Cargo will be offering a new non-stop 5-days a week service between Toronto (YYZ) and Brussels (BRU), offering belly capacity on B787-8 aircraft. Given both YYZ’s CEIV Pharma certified facility which is handled by GTA dnata, and BRU’s strong focus on specialized shipment handling (pharma, perishables, dangerous goods and valuables), the carrier will be offering the following Air Canada Cargo products: AC Absolute°, AC Pharmacair, AC Fresh, AC DGR and AC Secure, and points to the excellent on-forwarding connections:
“Our global hub at Toronto Pearson International Airport provides quick and seamless connections to dozens of cities across Canada, the United States, Central and South America.”
Commenting on the upcoming service, Air Canada’s Vice President of Network Planning, Mark Galardo, said: “We are pleased to launch new non-stop, year-round flights from Toronto to Brussels, complementing our successful Montreal-Brussels service now celebrating its tenth anniversary. This is a further expansion of Air Canada’s reach to Europe and beyond. This new service will conveniently connect our extensive North American network through our Toronto Pearson global hub directly to Brussels, where our Star Alliance partner Brussels Airlines offers far-reaching connections throughout Europe and Africa.”
Emirates SkyCargo and Accuity sign multi-year deal
The two companies have inked a multi-year deal with an aim to optimizing Emirates SkyCargo’s sanctions compliance and export control programs. In particular, Accuity’s Firco Trade Compliance solution, will enable Emirates SkyCargo to automate around six million compliance checks each month, as it screens shipment documentation (air waybills) against sanctions, dual-use goods and regulatory watch lists, in a single, efficient interface.
Emirates’ Senior Vice President, Cargo Operations Worldwide, Henrik Ambak (seen left), stated: “Our top priority is to continue to adhere to regulatory requirements and manage our screening obligations accurately. Working with Accuity has enabled us to screen our very high volumes of shipments more efficiently ensuring that we comply with all international regulations. Emirates SkyCargo is firmly committed to the prevention of illegal wildlife trafficking and with the functionality of the Firco Trade Compliance system, we will now also be able to more effectively identify any wilful mis-declaration of wildlife goods that are shipped illegally.”
The tool screens shipment documentation against a variety of regulatory lists, including the OFAC sanctions list and the EU dual and controlled goods list. It also enables the analysis of bespoke datasets, such as – in this case - an endangered wildlife list.
Accuity, which specializes in financial crime compliance, payments and Know Your Customer (KYC) solutions, has developed its originally financial transactions oriented Firco Trade Compliance solution to support the air cargo industry’s large-scale and highly complex operational requirements. The system can verify sender and recipient legitimacy, check for dual-use or controlled goods (such as military), and can ascertain that the shipment is not going to or coming from a prohibited location. In all, it will help Emirates to automate and streamline its regulatory compliance screening operations, increase efficiency and improve the speed of service to its customers.
Sophie Lagouanelle (center), Vice President of Financial Crime Screening at Accuity said, “This project marks a significant milestone for Accuity in our strategy to expand our screening offering to the cargo industry. By working in close partnership with Emirates SkyCargo, we are redefining best practice and setting a new standard of compliance for other cargo operators to follow.”
Nallian and LUX-Airport implement new Cargo Community System
Luxembourg Airport is ready to implement Nallian in order to increase its transparency, predictability and process efficiency. At almost 900,000 tons in 2019, Luxembourg Airport ranks as one of Europe’s heavy-weight cargo airports, so process efficiency is a must in order to professionally meet customer expectations. lux-Airport is therefore the latest to collaborate with Belgium-based Nallian, specializing in providing collaborative solutions in logistics and air cargo. It will be implementing a cargo community system (CCS) at Luxembourg Airport, enabling all those involved in international trade at the airport, to collaborate in a neutral IT platform. An important component of the Luxembourg Single Window for Logistics program, the CCS will enabling real-time capturing and sharing of detailed information regarding shipment processing, empowering stakeholders to improve their planning and process execution, and will ultimately make for more efficiency and transparency regarding performance. The first implementation phase in 2020, will focus on perishables and live animals shipments with a select group of pilots including Cargolux, LuxairCargo, Kuehne+Nagel, Arthur Welter and necessary public authorities. Once the pilot has been successful, the CCS will be rolled out to include all cargo types and interested companies.
Inconsistent implementation of EU’s customs rules hurts cargo carriers
The lack of consistent implementation of the new EU customs rules causes unnecessary administrative costs and thereby impacts the competitiveness of the EU cargo carriers. This is one of the 5 ‘gaps’ still lacking in the implementation of the European Single Aviation Market, identified in a study by ICCSA-University of Bergamo and commissioned by Airlines for Europe (A4E). While the exact amount of the impact on cargo carriers remains unidentified, the total cost of the unfinished implementation of Europe’s Single Aviation Market is estimated at €37 billion. Nearly half of that amount, €17.4 billion, could be saved by updating and implementing the Single European Sky Regulatory Framework. Apart from the latter and the lack of consistent implementation of the new customs rules, the other ‘gaps’ in the system are the unilateral aviation taxes, airport charges and the reintroduction of border controls within the Schengen market (which affect the passenger market).
Brigitte Gledhill / Marcel Schoeters
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