Scan Global Logistics acquires NZ’s Orbis Global Logistics
Nordics-based Scan Global Logistics (SGL) has reached down to the other side of the globe and entered into a binding agreement to acquire New Zealand-based Orbis Global Logistics Limited, effective 05OCT21. In terms of business model and values – namely customer-centric and entrepreneurial – the two companies are well-matched and thus complement each other, offering a wider spread of transport and logistics solutions to a diverse portfolio of customers. SGL’s strategy sees excellent growth to come in the Pacific region, from which it now stands to benefit. Orbis, founded by Troy Hageman, Stuart Kingdon, and Stephen Fredricson, in 2017, and providing end-to-end freight forwarding solutions for standard cargo and perishables out of Auckland, Wellington, and Tauranga, quickly gained a key position in the national logistics market. “The SGL acquisition of Orbis represents the next chapter in our dynamic growth in the NZ market. SGL is the perfect fit for us on a cultural level. It also gives us the ability to utilize their extensive network and infrastructure to expand within the Pacific Region and beyond, to the benefit of our customers and staff alike,” Troy Hageman, Director of Orbis explained. He and his co-founders will continue to manage the New Zealand division.
SGL’s CEO Pacific Region, Søren Madsen, is delighted with the expansion: “In Orbis, we immediately saw a perfect match with our SGL DNA and a unique opportunity to significantly strengthen our position, providing a strong platform for our ambitions in New Zealand. Under the continued leadership of Troy, Stephen, and Stuart, I am confident our 'company's global reach and strengths will be utilized in full and complement Orbis' high-quality solutions and market position to deliver an even better value proposition to our existing and future customers”.
Words that are echoed by SGL’s Group CEO, Allan Melgaard: “We are thrilled that Orbis is joining our family, which marks another important milestone in our global expansion plans. The Pacific region remains a key market for SGL in the years to come, where we expect significant growth and see strong demand.”
Joint cargo drone project kicking off in South Korea
“South Korea is ripe with opportunity in the advanced air mobility space, and Jeju Island’s specific volcanic and island geography provides a unique backdrop on which to demonstrate the benefits of drone logistics. With our BVLOS cargo drone operations, delivery services on the island will be up to six times faster, with carbon emissions reduced by up to 90%. Drone deliveries have the potential to totally transform services for residents and healthcare providers, and we’re excited to be amongst the first movers in South Korea – and globally,” Skyports’ CEO, Duncan Walker, announced the planned cargo drone project that drone developer, Skyports, and global aerospace solution supplier and manufacturer, Kencoa Aerospace, have entered in to in South Korea. The two companies recently signed a memorandum of understanding (MoU) which envisages cargo drone deliveries to and on South Korea’s biggest island, Jeju Island, just under 100 km south of the mainland in the Korea Strait. The project will focus on developing cargo drone delivery capabilities of critical supplies, such as medical provisions, across the island – something Skyports is already familiar with, having already carried out similar projects in the UK in collaboration with the NHS and Royal Mail.
The project will focus on creating proof-of-concepts with regard to beyond visual line of sight (BVLOS) operations, plus conducting a feasibility assessment of setting up a cargo drone vertiport and accumulating critical eVTOL operations data prior to commercial operations. Those are Skyports’ activities. Kencoa Aerospace, which has already set up a drone operation division on the island, will assist with insight into the South Korean AAM ecosystem, as well as recruit the right staff and build a vital relationship with Jeju Island governmental agencies in order to promote the commercialization of cargo drone operations.
Kenny Lee, CEO of Kencoa Aerospace, said: “Through this partnership with Skyports, a global technology leader in the AAM industry, we will commence drone deliveries in Jeju Province before establishing AAM infrastructure and expanding into the air taxi industry. Jeju’s excellent tourist resources will promote the commercialization of our AAM services. The strength of this partnership will enable the fastest commercial launch in Korea.”
dnata is first in line on IATA’s gender diversity initiative
The first ever global air services provider to join the International Air Transport Association's (IATA) diversity initiative “25by2025” alongside 62 existing airline members, is Dubai-based dnata. Focused on advancing gender diversity in the aviation industry, the initiative aims to up the number of women in executive management positions and under-represented roles to a minimum representation of 25%, or to increase current levels by a minimum of 25% across all divisions by the year 2025. This also includes the representation and nomination of women to IATA governance roles.
Steve Allen, Executive Vice President of dnata, said: “Diversity has always been a core value at the heart of our organization, with our people coming from more than 160 nationalities. Over recent years, we have taken several initiatives to empower women across our operations to progress their careers and help them achieve their full potential. We are thrilled to join IATA's initiative to step up to the next level and play our part in improving gender diversity across the aviation industry. We will continue to engage our colleagues at all levels of the organization to continuously improve while consistently monitoring our performance to achieve our goals. With our dedicated, diverse team we stay focused on delivering excellence in everything we do to help travelers safely reconnect and discover the world.”
Anton Grove, Vice President People Performance & Development of IATA, added: “I welcome dnata's commitment to 25by2025. Joining the 25by2025 pledge signals the importance of diversity, equity, and inclusion to all our aviation partners. By working together with a common goal, we will drive real change. I look forward to seeing more ground handling companies joining this effort in the future.”
dnata which will be reporting initiative metrics annually, pointed out in its release that women are already employed “in wide-ranging job roles [across the globe] covering all major operational, commercial and support functions,” that they are “represented in almost all seniority levels within the company, including executive management as well as various technical roles [including] specialized operational roles such as cargo loadmasters, ramp operations team leaders, turnaround coordinators and flight dispatchers. Over 24% of the women working with dnata have been with the company for 10 years or longer.”
More trains along the Iron Silk Road
Austrian-based cargo-partner has spun an enormous railroad web since the start of 2021. Its latest press release refers to connections between China (Shanghai) and Romania (Bucharest), China (Shanghai, Ningbo, Shenzhen and Tianjin) and the UK (Basildon), China (Ningbo via Xi’an) to Slovakia (Dunajska Streda), China (Xi'an) to Sweden (Karlshamn), and (for a change) Japan (Tokyo, Yokohama, Nagoya, Kobe and Toyama Shinko) to Poland and Germany – the latter being a combined sea/rail solution. With the ongoing stagnation at certain Chinese air and seaports, the cost-efficient and environment-friendly rail solutions are a welcome, more certain alternative. cargo-partner has therefore upped its connections to provide reliable LCL solutions, generally with an average of 25-day transit times. Regarding one of its newest connections, the Shanghai to Bucharest weekly departures since JUL21, Stefan Krauter, CEO of cargo-partner, commented: “With our LCL connection from Shanghai via Xi'an to Bucharest, we consider ourselves a pioneer on this route and can provide a unique transport solution. We are already serving several valued customers in the country and plan to expand this division even further in the future.” The road/rail or rail/sea solution all “come with door-to-door service, including pickup and delivery, customs clearance, warehousing and inventory management, as well as a wide range of value added services.” With regard to its China-Sweden connection, he points to more developments to come: “This addition to our existing rail transport portfolio in Sweden allows us to offer our customers a reliable alternative to air and sea freight with a low risk of congestions, short lead times and competitive rates. In addition, we can ensure easy customs handling and fast domestic distribution. As the next step, we are currently developing a corresponding eastbound service from Sweden to China.” This will then add to the many existing eastbound rail services already in place.
Expeditors offers “OK” knowledge-share opportunity
“OK” doesn’t mean being average or passable in this case – it is Expeditors’ acronym for its intern recruitment program known as “Opportunity Knocks”. The company has thus already given over 1,200 young people an insight into the logistics industry, with 90 becoming long-term employees. Even during the past 12 months of the pandemic, 800 were supported virtually on the program, learning through supply chain career case studies or being provided with computer and interview skills. “The turnover rate of OK alumni in the first two years is five times lower than typical new hires. Internal surveys have shown that staff engagement has increased for 57% of staff involved in the program. 90% of OK supervisors and mentors reported personal skill development,” the press release explains.
Open to 16-24-year-olds who are looking to start a career, but have no degree, the Opportunity Knocks internship program, launched in 2008, was inspired by the career paths of two Expeditors executives: Dan Wall worked his way up from entry-level role to President of Global Products, while Jose Ubeda’s journey from an entry-level role led him to become Senior Vice President of Expeditors Digital Solutions. “Opportunity, mentoring, and hard work changed my future,” Jose Ubeda, OK executive program sponsor, emphasized. “I started with Expeditors delivering documents across San Francisco when I was a teenager, and now, as a senior executive, this is a way to give back and provide young individuals with career opportunities.” And Expeditors is not just giving back, but also giving out – interested companies can get in contact and will be provided with the OK program template and best practices: “We are keen to share our experiences with other companies and demonstrate to them the many benefits of working with young people in this way, from the perspective of giving them opportunities, but also serving corporate social responsibility, talent pipeline, and employee engagement goals,” Lenora Turner, Director, OK, stated, pointing to the benefits of loyal and motivated employees both through learning and sharing experiences and skills.
Double-Bill behind Mammoth ready to convert B777s to freighters
Founded by two USA Bills – Wagner and Tarpley – back in DEC20, Mammoth Freighters LLC (Mammoth) announced 08SEP21, that it is launching passenger-to-freighter conversion programs for Boeing Triple Sevens: B777-200LR and 777-300ER, to be exact. These are deemed the most productive and economical freighters of the future, as the B747s and MD11s near retirement age. Mammoth bought a feedstock of feedstock of ten 777-200LR GE90-110B1 equipped aircraft from Delta Air Lines, making it the owner of the largest fleet of -200LR sister aircraft in the world. It has a Boeing data license for these conversions and is already well underway with the design, engineering and parts production for the 777-2000LRMF conversions. Pre-modification flights tests have taken place, with modification planned to begin in the second quarter of 2022. Once certified, Mammoth expects that the 777-300ERMF STC will soon follow suit, too. FAA approval is expected in the second half off 2023. Mammoth’s business model is very flexible, enabling air cargo operators and asset owners either to provide their own assets for conversion, or to acquire or lease ready-to-fly converted freighters from Mammoth’s fleet.
Bill Tarpley, Mammoth Co-CEO, explained, “All models of the 777 with GE90-110/115 engines are renowned for having superior operating economics compared to the aging 747-400 and MD11 fleets and, as freighters, both the 777-200LR and 777-300ER have a bright future in supporting global air cargo demand. With our modern design and existing feedstock of ten aircraft, Mammoth will provide express, e-commerce, and general freight operators with highly affordable, flexible, and purpose-built 777 freighters that burn less fuel and emit less carbon than the current freighter fleets.” Bill Wagner, Mammoth Co-CEO, added, “We have assembled a distinguished team of over 100 design, engineering, certification, production, operational, and sales professionals with significant experience in converting Boeing passenger aircraft to freighters.” He continued, “We are truly excited to bring the high-capacity, long-haul Mammoth 777s to the marketplace to meet the current and future demands of this rapidly growing widebody air cargo sector.”
BRU beginning to bustle with passengers, while bursting with cargo
The trend looks good for Brussels Airport, which recently revealed its to-date passenger and cargo figures. "With 2.7 million passengers at Brussels Airport this summer holiday, we have finally been able to set a real relaunch in motion, together with the partners at Brussels Airport. We have not yet reached the 5.3 million of a normal summer, but the confidence in travelling is recovering and this summer again demonstrates that this, with vaccination and/or testing, can be done safely,” says Arnaud Feist, CEO of Brussels Airport Company. While passenger figures are well up compared to last year, but still around 44% less than in 2019 (in August), and with a 43% drop in the number of passenger flights, the cargo trend is looking very healthy: “Air cargo continues its strong growth with 34% growth in volumes compared to last year.” Full freighter flights actually increased by 18.4% compared to AUG20, though the share of preighters remained stable. The overall increase in cargo volumes, which is expected to continue over the next months, breaks down into three segments thus: full freighter services (+40%), integrator services (+ 17%), and cargo on passenger flights (+ 76%) – the latter reflecting the increase in passengers services again. “In the full freight segment there has been a growth with nearly all existing clients. It is the new routes from Asia in particular that contribute to this extra growth. Asia remains the most important region, followed by North America and Africa.
The transport of Covid-19 vaccines to and from Brussels Airport continues; until now, more than 300 million vaccines have been handled at the airport,” the press release explains.
ACB chairman David Bellon: “Take the smartphone into the air cargo process”
In his welcoming address at Air Cargo Belgium's annual barbecue on 09SEP21, Chairman David Bellon advocated the full integration of smartphones and similar electronic devices into the air cargo administrative process.
According to Mr. Bellon, the COVID-19 crisis has forced people to work from home, online; a trend which continued even when shops and restaurants were reopened. “So, for our personal transactions, we used our smartphones and QR codes like never before. Today, with normality returned, this behaviour has become normal,” he said.
“So, project this on your professional life, in air cargo, on import and export. Why is it so difficult to book slots for our pick-ups and deliveries? Why can’t we have our staff use their smartphone at work like we use it in our personal lives? Why are we still hesitant after the changes forced by COVID-19? Our business processes would be much easier and efficient, indeed!” the manager wonders.
ACB’s BBQ was the organization’s first live event since the beginning of the pandemic.
It was attended by more than 1,000 people.
Marcel Schoeters in Brussels
LATAM has now transported more than 100 million COVID-19 vaccines
LATAM’s “Health Solidarity Plane” program which was set up over 10 years ago in order to “generate value in society through connectivity” by transporting medical professionals and supplies across South America at zero cost, announced on 08SEP21 that it now surpassed the 100 million milestone when it comes to the movement of COVID-19 vaccine doses. These were transported free of charge within Brazil, Chile, Ecuador, and Peru. “Each of LATAM's collaborators are proud to be able to contribute to overcoming the pandemic. Today, we have transported the 100 million doses of COVID vaccine for free. We will remain committed to making our connectivity available for the benefit of the lives and health of the people of South America,” Roberto Alvo, CEO of LATAM Airlines Group, promised. In the past 10 years, the airline has carried over 2,400 medical professionals as well as patients with urgent medical needs and has carried over 770 tons of medical cargo across South America. “Recently, an alliance was announced with solidarity organizations and civil societies in Brazil, Chile, Ecuador and Peru, making the expertise, infrastructure, connectivity and speed of air transport available -through tickets and cargo transfer at no cost- to the institutions in agreement. This collaboration will be replicated in Colombia in the coming weeks,” the press release continues. Its “Health Solidarity Plane” is one of three action areas under it strategic sustainability focus. The other two are its “Environmental Solidarity Plane” which secures the transportation of protected flora and fauna, as well as scientists and environmental NGOs conservationists involved in protecting the South American ecosystem, and its “Natural Disasters Solidarity Plane”, which carries victims and support professionals in the event of floods, fires, earthquakes, tsunamis, or volcanic eruptions.
Last Thursday, LATAM has received several offers from its most important claimholders and its majority shareholders, each of which provides more than US$5 billion of new funds, reaffirming the market's confidence in LATAM and its efforts to allocate sufficient capital to exit Chapter 11 bancruptcy proceedings filed in the U.S. last May. The application for creditor protection includes LATAM's affiliates in Chile, Peru, Colombia, Ecuador and the United States. In its restructuring plan, presented now, the carrier speaks of achieving pre-covid financial results by 2024. By 2026, a 7% growth in capacity versus 2019 is expected, driven by a full recovery of the domestic market in 2022 and international in 2024. By 2026, the group’s total revenues would reach USD 11,764 million, 13% higher than in 2019, passenger revenues would grow 8% and cargo revenues 59%, reads LATAM’s forecast.
We welcome and publish comments from all authenticated users.