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9th AUGUST 2016  

World Experts Join AIRCARGOPEDIA!

A new vertical launched - CHARTER NETWORK
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The Panalpina Charter Network

Since 1990 Panalpina has been the only major freight forwarding company to offer its Charter Network for air freight. It is a unique asset that differentiates Panalpina from all other large freight forwarders. The network uses leased and chartered aircraft to guarantee capacity, and is structured to handle express and special shipments. One of the biggest benefits of the network is control, for example when handling temperature sensitive cargo for healthcare customers. Panalpina not only controls aircraft on specific routes, but the company designs and oversees processes on the ground as well, ensuring the best possible control from door-to-door. The network also enables Panalpina to route some of its flights to suit customers’ requirements, if the cargo volume is large enough. The Panalpina Charter Network accounts for approximately 15% of Panalpina’s air freight each year.

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Lucas Kuehner is a seasoned logistics professional with extensive knowledge in international supply chain management. Since December 2012 Mr. Kuehner is the Global Head of Air Freight of Panalpina, based in Basel, Switzerland.

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All you need to know about CARGO BORDER MANAGEMENT - a dedicated vertical launched
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What we do and how we do it

In 2014, airlines transported 51.3 million metric tons of goods, representing more than 35% of global trade by value but less than 1% of world trade by volume. That is equivalent to $6.8 trillion worth of goods annually, or $18.6 billion worth of goods every day. The ability to transport cargo, cross border, over long distances in relatively short timeframes provides the industry with a clear distinctive market advantage compared with other modes. However, this advantage can only be truly realized if border procedures are integrated, automated and based on risk management principles. In this regard IATA strives to work with International Organizations (WTO, ICAO, WCO), national regulators and industry stakeholders to define global procedures, regulations and standards that recognize the need to safeguard passengers, crew and cargo against acts of unlawful interference, balanced with the need to facilitate legitimate trade.

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Gordon Wright is a Head, Cargo Border Management at the International Air Transport Association in Geneva and is currently responsible for cargo security, Customs and trade facilitation. His main role is to work with and respond to new Customs, facilitation and security challenges from regulators and International Organizations and develop standards, tools and measures to meet these new requirements.

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South African Airways Cargo joins Aircargopedia!
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Winner of Best African Cargo Airline 2015 and named among the top African Airlines at Air Cargo News Cargo Airline of the Year Awards 2016

SAA carries most of its airfreight in its passenger airline.

SAA Cargo shipment types include general cargo, perishables, courier, express and mail globally. SAA Cargo also transports livestock, human remains, dangerous goods, and vulnerable and valuable cargo as part of its special services and offers an ad hoc charter service for more urgent deliveries. SAA Cargo leverages interlines and partnerships in accessing key markets to provide customers with extensive reach and seamless connectivity worldwide.

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For SAA Cargo no shipment is too large or too small as shipment types include general cargo, perishables, courier, express and mail across the globe. SAA Cargo caters for different commodities as well as various service types to suit our customer’s needs.

Our services include general cargo, express cargo, starlight express, shipments by road to neighbouring countries, mail and courier.

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Air Cargo Logistics, a world of exciting opportunities for the next generation in an ever-changing world
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by Lilian Tan, Executive Director, Strategic Aviation Solutions International (SASI)

In today’s competitive environment what would it take for you to become a more effective leader in your current role to take advantage of the tremendous need for new skills by all sectors in air cargo associated industries?

The air cargo industry is going through a metamorphosis at the moment as consumer behaviour has globally switched to an “I want it now” immediate gratification mode for all commodities. This has been brought about by the tremendous impact of companies like Amazon and Alibaba who have changed the consumer buying behaviour through their speed, ease of use and vast variety of product offering. They are focussed on making their platforms “one stop shopping” experiences for every consumer.

This has forced the forwarding industry to have to confront shippers who are much more savvy and aware of all price and service possibilities available to them, and in order to be competitive work with ever smaller margins. Airlines, as a consequence, and their suppliers such as ground handling agents, airports and trucking services are facing demands to lower costs and increase service at the same time to remain competitive.

Against this backdrop the companies that fail to invest in their strategic positioning, branding, marketing skills, I.T. infrastructure and most of all management and staff will be facing a circle of decline and eventually a loss of its customer base and all that entails.

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Lilian brings a strong international business background and empathetic style to managing people through change. She has a history of success in people management, corporate planning, programme design/implementation and sales & marketing to initiate and support organisational growth globally, in the aviation and logistics sectors.


Data Analytics helps you predict the future and make smarter Business decisions.
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Ken Pflug provides an overview of big data and analytics and its application to the air cargo industry.

This article provides an overview of big data and analytics and its application to the air cargo industry. Combined with your current management methods and tools, analytics adds unique value in decision making by turning raw data into useful knowledge. Analytics can be considered the Global Positioning System (GPS) of decision making in which one can visualize the most efficient “route” to achieve a business goal. Similar to GPS, analytics can adjust the route as conditions change to optimize the best approach in reaching a “destination”. However, the real benefit of analytics is its ability to combine historical and real-time data with statistical analysis to search for key patterns, draw inferences and make predictions about actions in the future.

According to a 2015 survey of 437 organizations by Gartner, Inc., more than 75% of companies are investing or planning to invest in big data within the next two years with approximately two-thirds of big data projects initiated by the Chief Investment Officer or business unit heads.

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Ken Pflug is a US based senior business consultant with over 35 years of corporate experience as a consulting actuary and as a business leader.

He is a mentor who assists organizations in designing solutions to solve complex business problems and is able to help air cargo companies design bespoke products and services to meet the ever changing needs of a growing global marketplace.

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The “3D’s” of 3D Printing
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By Dr. Peter Canellis

A recent internet search for “3D printing additive manufacturing” yielded 1.1 million hits. To say that this technological development, even in its relative infancy, is a “hot topic” would be an understatement. Nonetheless, there may be perspectives on 3D printing that could do with some additional focus in order to help us understand its potential affects in managing supply to meet concomitant demand.

This article will argue that three economic principles:
• Economy of Scale,
• The “Long Tail”, and
• Risk Minimization

- will drive the adoption of 3D printing inn many production industries. While the first two will have a more evolutionary effect on adoption the third, risk minimization, will have an accelerating effect.

Brief Background

Three-dimensional (3D) printing of objects traditionally created by metalworking or injection molding continues to grow. After about 20 years of development, a technology previously confined to use by hobbyists and creators of prototypes is now capable of producing intermediate and finished goods on an industrial scale.

3D printing was first used to make prototypes of parts and assemblies in the mid-1980’s. Prior to this time, prototypes had to be manufactured with “traditional” manufacturing techniques, meaning that standard tools and machines would be used to make either a single (i.e., custom) version, or a very limited run for use in trial applications. This approach obviously made prototyping expensive.

Prototyping became “rapid prototyping” when computer-aided design (CAD) helped to compress the design phase of the prototyping process. Prototyping then became even more rapid when CAD drawings were fed into a 3D printing program to complete the cycle.

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Alliances in the freighter market: The challenge of launching and sustaining a cargo joint venture – Lufthansa Cargo did it
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- By Bernhard Kindelbacher, Lufthansa Cargo

The air cargo market is highly fragmented: The top ten players share less than 25 per cent of the worldwide revenue ton kilometers (RTK). Each large belly of a new widebody passenger aircraft and each new freighter increase the capacity and puts pressure on rates. This is a growing challenge for air cargo carriers. Even worse from the customers’ perspective inefficient interlining, the lack of standardized processes, and a so far largely unmet need for digitization make it hard to realize benefits. The situation resembles the passenger business twenty years ago. In the 1990s, in reaction to the fragmentation characterizing the passenger airline market alliances began to emerge. Today we can observe a similar trend in the airfreight business. Carriers are beginning to cooperate in various ways: bilaterally or multilaterally, globally or with a regional focus, realizing cost synergies, and even sharing revenues provided that anti-trust immunity was granted.

ANA and Lufthansa Cargo: the world’s first cargo joint venture with deeply integrated processes

We as Lufthansa Cargo see cooperations as an integral part of our “Lufthansa Cargo 2020” strategy further promoting our position as industry leader. We believe bilateral cooperations are the most promising way to join forces. Together with ANA we launched the world’s first cargo joint venture with an unparalleled depth of process integration in December 2014. By combining our freighter and belly networks and the strengths of both our sales teams our customers can benefit from the power of “together”. Based on the concept of “metal neutrality” customers have access to the wide European and Japanese feeder networks of Lufthansa and ANA as well as the intercontinental flights of both partners connecting Europe and Japan. Through the enlarged joint network, an increased number of direct flights, and co-located handling facilities customers can save hours of valuable transportation time. In addition, aligned sales activities and harmonized products and processes ensure enhanced quality and flexibility.

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Bernhard Kindelbacher
Lufthansa Cargo

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- Harald Zielinski, Head of Security & Environmental Management, Lufthansa Cargo

While flight safety tends to revolve around operational and often technical issues, the topic of security has more to do with ensuring the right plans and rules are in place to prevent acts of criminality and terrorism. The security of air cargo, especially with a view to belly freight, is also of great importance to the safety of aviation as a whole.

But let’s take a look back first. Inevitably, the history of air cargo is closely linked with that of passenger air travel. However, the processes in both sectors are scarcely comparable now. People sometimes believe that it should be possible to apply security regulations across the board to both passenger aviation and air cargo. Actually, dedicated air cargo security expertise is essential. Ensuring a first-class air cargo security system is a constant challenge which involves juggling ongoing operations and a fixed infrastructure.

In general, aviation security standards have been the order of the day for a good one hundred years. Almost all rules in commercial and international aviation are agreed multinationally between countries. Some events have been especially important to the genesis of current standards: the bombing of a PanAm jet on 21 December 1988, the September 11 attacks in the US in 2001 and, lastly, the discovery of parcel bombs in 2010. On the one hand, the regulations have become ever stricter and defence mechanisms have improved over time. On the other, technical progress has also brought with it new threats.

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Harald Zielinski
Head of Security & Environmental Management
Lufthansa Cargo

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