Aircargopedia Newsblast: March 2020!
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23rd March 2020  

Dear Air Cargo Professional:

As the world braces to face the Corona Virus pandemic, read more about how its affecting the Air Cargo Industry.

Delta Cargo expands its air cargo charter operations to support Global Supply Chain needs.

Learn more about the Profit Pyramid with a detailed article written by Peter Canellis, PhD, PE, Professor of Management.

Emirates is highlighting how women in aviation are supporting economies and touching lives across the world.
  DJ Ghosh

D.J. Ghosh
President & Publisher
”The Complete Encyclopedia for the Air Cargo Professional & Investor”


Air Canada Cargo

Coronavirus impacts the Air Cargo World

Compiled by Aircargopedia 

Air freight rates are skyrocketing after the grounding of many passenger flights in Asia has left shippers scrambling to book limited spots on cargo planes as Chinese industrial production restarts, according to industry insiders.

About half of the air cargo carried worldwide normally flies in the belly of passenger jets rather than in dedicated freighters. But deep flight cuts in response to the coronavirus outbreak have made the market more dependent on freight haulers.

Freight forwarder Agility Logistics said on its website that China's air cargo capacity was down 39 per cent in February relative to last year because of the passenger flight cuts.

Shippers wishing to rush products out of China by air face sticker shock, said Refael Elbaz, chief executive of Israel-based Unicargo, which specialises in freight forwarding for sellers.

"The price is three times higher - at least - because there is just no capacity," Elbaz said.

Freight Investor Services said in an update to clients on Monday that cargo pricing on China-to-US routes had reached "abnormal highs" and that intra-Asia traffic was up by 22 per cent over the previous week. TAC Index data shows China-US cargo rates have tripled over the last two weeks to more than $3.50 a kilogram.

The price surge will benefit freight haulers and help cargo-heavy Asian airlines like Cathay Pacific Airways Ltd, Korean Air Lines Co Ltd and Japan's ANA Holdings Inc offset some of the steep revenue losses from halting many of their passenger flights.

Chris Mu, who runs a small logistics company in Shenzhen, China, that often uses air transport to supply Amazon sellers in Europe and to transport UK-made car parts for assembly in China, said prices had tripled since before the Lunar New Year and are rising by the hour.

"With reduced options, we have to take whatever we can get, flying goods from the UK to the Netherlands, then from Liege in Belgium to Nanchang in Jiangxi province, just to get them to a factory in Shanghai," Mu said. "For the airlines, it's fine because they're still making money, but it's the middlemen like us who are bearing the costs, and we don't like to go to our customers every day and tell them the price has gone up."

DHL's express volumes have started to recover in China and the company is putting planes back into the network, Deutsche Post AG finance chief Melanie Kreis said on Tuesday, noting that its fleet is a major asset given the grounding of many passenger planes.

In mainland China, the number of freighter arrivals has increased in recent weeks as factories resumed production. China's aviation regulator said the number of freighter flights was expected to reach 870 this week, up from 788 in the week starting Feb. 17.

"The number of air charter requests we've gotten in the past week are more than the number we've received in a normal quarter," said Brian Bourke, chief growth officer at SEKO Logistics, a Chicago-based freight forwarder.

Most of those requests involved moving goods from China to the United States, he said.

For more news and information about the air cargo industry, please visit AIRCARGOPEDIA.COM.

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Delta Cargo Launches Charter Operations to Support Global Supply Chain Needs

Altanta, Georgia - March 19, 2020

Earlier this week, Delta Cargo announced that it would expand its air cargo charter operations as passenger flight cancellations cause an unprecedented reduction in belly capacity across the industry.

As the air cargo industry struggles to deal with the challenges of COVID-19, many carriers are flying empty passenger aircraft as cargo freighters or, as in the case of Delta, electing to expand their use of chartered equipment.

In announcing its decision, Delta Cargo issued a press release stating, “As the COVID-19 situation continues to evolve, we recognize that our global supply chains need support for shipping essential goods to businesses and communities. Responding to Delta corporate customers who have told us they need help transporting cargo during these times of uncertainty and change, Delta Cargo is launching charter operations to provide the safe and reliable transportation of customers' goods around the globe.”

Shawn Cole, Vice President of Delta Cargo also stated, “Serving our customers and communities where we live, work and serve, is part of Delta's DNA. Offering new supply chain solutions through Delta Cargo to our customers is one opportunity for us to provide the support our customers tell us they need during this unprecedented business environment."

Delta Cargo has announced that the following 13 U.S. airports are participating in this program:

• John F. Kennedy International Airport - JFK
• Chicago O’Hare International Airport - ORD
• San Francisco International Airport - SFO
• Seattle-Tacoma International Airport - SEA
• Daniel K. Inouye International Airport - HNL
• Los Angeles International Airport - LAX
• Hartsfield-Jackson Atlanta International Airport - ATL
• Washington-Dulles International Airport - IAD
• Newark Liberty International Airport - EWR
• Dallas/Fort Worth International Airport - DFW
• Detroit Metropolitan Airport - DTW
• Boston Logan International Airport - BOS
• Miami International Airport - MIA

The cargo charter program will also support Delta’s more than 70 international destinations as well.

Peter Canellis
Kevin Pflug

Turkish Cargo

The Power of the Pyramid: Bringing it All Together

Peter Canellis, PhD, PE, Professor of Management

Previous installments in this series discussed how properly designed business processes and information systems can help to take time and cost out of the supply chain by allowing the people who perform those processes to work more efficiently and effectively. We’ll conclude by tying these ideas together using a concept that I call “The Profit Pyramid” that is illustrated below.

In the private sector, companies operate to make a profit (top level of the pyramid). Profits are made when the needs of customers are met through provision of products and services at prices that exceed costs (the second and third levels). These products and services are provided through the execution of those business processes that, taken together, comprise each company’s core competence. These processes must be executed and improved in order to sustain profitability (fourth level). The people who execute and improve processes are supported by information systems and capital assets (fifth level).

It is important to note here that investment in people, systems, and capital assets must be made in order for process improvements to continue so that profitability will, in turn, be sustained.

Profit Pyramid img1

Profit, and the growth that continued profits will enable, are the measures of effectiveness for the entire operation; hence our discussion of logistics from the financial perspective. We then discussed the specific processes that must be executed and improved by the participants in the supply chain to sustain profitability. They were identified as the major logistics cost drivers that are shown in the figure below.

Profit Pyramid img 2

Process execution and improvement are supported by information systems that are used by senior, mid-level, and first line managers. Their primary interest is with the applications (pre-transit, in-transit, or post-transit) that support business processes. These applications are, in turn, supported by hardware and software to capture and store data. This data will be turned into information that will be communicated within and outside the enterprise.

Profit Pyramid img3

Those responsible for executing and improving business processes must be properly trained and educated. This is a subtle but important distinction: while training focuses on learning to perform activities and use tools, education imparts a higher level of knowledge that will enable a more holistic view of how the enterprise needs to operate. A company’s people must work toward the common 1 of 2 purpose of delivering the highest level of customer service as cost-effectively as possible.

Profit Pyramid img4

The extent to which these interdependent elements are successfully brought together by the participants in the supply chain will determine how reliable and cost-effective that supply chain will be. Truly reliable and cost-effective supply chains will earn and benefit from sustained competitive advantage.

Peter Canellis

Peter Canellis, PhD, PE
Professor of Management
Vaughn College of Aeronautics and Technology


Emirates acclaims the women flying high in aviation

All-women flight deck crew operate a freighter trip covering 6 cities across 4 continents, ahead of International Women’s Day

Dubai, UAE, 5 March 2020

Women are making an increasing contribution to the aviation industry worldwide and are also directly supporting global exchanges in diverse areas facilitated by aviation such as international trade. On the occasion of International Women’s Day, Emirates is highlighting one aspect of how women in aviation are supporting economies and touching lives across the world.

The airline has released a video that follows an all-women flight deck crew operate multi-stop cargo flights across four continents on Emirates SkyCargo’s Boeing 777 freighter aircraft. Captain Ellen Roz from the United States and First Officer Heidi McDiarmid from Australia cover close to 30,000kms in 10 days on five freighter flights from Frankfurt to Mexico City onwards to Quito, Aguadilla, Amsterdam and finally to Dubai transporting over 300 tonnes of cargo ranging from fresh flowers and fruits to pharmaceuticals. The two pilots were also joined by Captain Heather Wolf from Canada for operating the flight from Frankfurt to Mexico City.

Emirates Women Crew

Women in Emirates

Women constitute more than 40% of the total workforce at Emirates with the majority working as cabin crew. Emirates’ female pilots come from over 30 nationalities, covering an age range from 23 to 62 years. Women from over 160 nationalities, including more than 1,100 Emiratis, are employed across the Emirates Group in operational roles in functions including flight operations, engineering, aircraft maintenance & appearance, catering, cargo and ramp operations; in customer facing roles in airport services, sales and customer affairs and corporate roles across business support functions.

"From the very start, Emirates’ success story has been powered to a large extent thanks to the hard work and talent of our female employees across all our business functions. On the occasion of International Women’s Day we celebrate their immense achievement not just at Emirates but within the global aviation industry. We are happy and proud that our multinational women employees act as trail blazers in connecting the world and also as role models encouraging women and girls everywhere to pursue careers in aviation," said Abdulaziz Al Ali, Executive Vice President of Human Resources at Emirates Group.

Emirates is also celebrating with its customers on board. In recognition of International Women’s Day, Emirates’ award-winning inflight entertainment, ice, is featuring over 120 female directed films. Movies include Hollywood blockbusters such as Charlie’s Angels directed by Elizabeth Banks; Mamma Mia! by Phyllida Lloyd; and Oscar winning films such as The Hurt Locker by Kathryn Bigelow and Lost in Translation by Sofia Coppola. The catalogue also features foreign language films like Shonali Bose’s The Sky is Pink and Haifaa Al-Mansour’s Wadjda.

Emirates Women Crew

Freighter Operations

Unlike operations for flying passengers, Emirates’ freighter flights are dedicated to transporting cargo and do not always originate and end in Dubai. Instead, the flights cover multiple origins and destinations over rotations that last several days. This allows for additional flexibility in cargo operations along with the ability to rapidly and efficiently cargo from where it is produced to markets where it is required by customers.

Additionally Emirates’ freighter aircraft also operate to destinations that are not covered by passenger flights. Ecuador, for example, is one of the largest flower producing markets in the world and is a cargo-only destination on Emirates’ global network. Emirates’ freighter aircraft transport fresh cut flowers from Quito to Amsterdam via Aguadilla, Puerto Rico. This ensures that the flowers are transported more rapidly from Ecuador to the Netherlands than if the flight had to travel to Dubai and then proceed onwards from Dubai to Amsterdam.

Over 75 tonnes of fresh flowers were transported on the freighter flights operated by Captain Roz and First Officer McDiarmid from Quito to Aguadilla and from Aguadilla to Amsterdam. Emirates’ freighter flights from Quito create a direct channel for exports for the Ecuadorian floriculture industry to Amsterdam, the world’s largest flower distribution hub. This supports the local economy in Ecuador and the livelihoods of over 100,000 people in the country who work to cultivate and harvest flowers.

Emirates Women Crew

Freighter flights also allow for rapid transportation of goods such as lifesaving medication from the location where they are manufactured to patients who may urgently need them for treatment. Close to 10 tonnes of valuable pharmaceuticals were transported on the freighter flight from Frankfurt to Mexico City operated by the all-women flight deck crew.

Emirates SkyCargo operates scheduled freighter flights to over 40 global destinations every week. In addition, Emirates’ Boeing 777 freighter aircraft also execute a number of on-demand charter operations for clients to deliver a range of commodities from outsized machinery to relief materials. In 2019, Emirates SkyCargo operated over 300 charter operations globally.

South African Airways
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