Aircargopedia Newsblast: October 2019!
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17th October 2019  

Dear Air Cargo Professional:

A significant increase of unmanned aircraft is estimated for delivery of cargo shipments and emergency supplies that requires safe and efficient integration into airspace according to Alexander de Juniec of IATA.

Airports worldwide need to integrate drones responsibly into their operations focused on advantages of social and commercial benefits.

On the other hand UPS has expanded footprints in emerging markets including Indian subcontinent.
  DJ Ghosh

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


IATA Cargo Events 2019

Swissport Introduces Automated, Self-Service Kiosks for Air Freight

Kevin Pflug, 14th October 2019

Swissport has announced that it will be installing fully-automated, self-service kiosks at its air cargo warehouses to help increase the efficiency and security of its air freight handling processes.

First launched at Brussels Airport and then in Amsterdam, this initiative will be rolled out over the next 24 months at all of Swissport’s core cargo stations. It is intended to reduce wait times and increase the quality of air freight documentation.

Truck drivers may login at the kiosks with an official ID or passport and scan all relevant air freight documentation. Drivers will then receive a text message informing them of the gate number where the cargo is to be delivered. Forwarders may also enter shipping information via an Internet based portal.

Moreover, customers can link their IT systems to Swissport’s database via a secure connection. The kiosks are also linked to the EU Regulated Agent database and will check the security status of each shipment.

“Our new kiosks support the paperless eFreight Initiative by IATA and at the same time accelerate the import and export processes for our customers significantly,” stated Hendrik Leyssens, Vice President Global Operations Cargo at Swissport International. “Truck drivers benefit from minimal wait times and faster turn-arounds.”

Swissport’s 66,000 employees worldwide handled nearly 4.8 million tons of air freight in the company’s 115 cargo warehouses worldwide. The company had operating revenues of 2.99 billion Euros in 2018.

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


Antonov Airlines partners with Crane Worldwide to transport oil well safety equipment to Argentina

London, UK, Thursday 10th October 2019

Antonov Airlines has flown a mobile crane and fire extinguishing equipment from George Bush Intercontinental Airport (IAH) to Presidente Perón International Airport (NQN) in Argentina for Crane Worldwide.

An An-124-100 flew the crane and associated equipment which included booms, tracks, control stations and water pumps, that weighed a combined total of 70 tonnes.

“Antonov Airlines yet again proves to be an invaluable partner when we are tasked to handle mission critical cargo for our clients,” said Dillon Lato, Inside Sales Supervisor – Houston, Crane Worldwide.

“We had an AN124 agreement signed, aircraft on the ground, loaded, and ready for wheels up to the destination in 48 hours.

Antonov Crane Worldwide

“Our clients expect and deserve the highest level of performance, and with partners like Antonov Airlines we are able to deliver time and time again.”

Antonov Airlines and Crane Worldwide have collaborated on previous projects, including flying 223 pallets of chemical drums on An-225 ‘Mriya’ from Singapore and Malaysia to Saudi Arabia.

“Communication between Antonov and Crane Worldwide has always been very effective, which helped us avoid the pitfalls that can lie in the details of setting up this kind of project,” said Jessie Baiza, Regional Sales Manager North America, Antonov Airlines.

“The Antonov crew are experienced in handling shipments exactly like this one and we used the aircraft’s on-board crane to facilitate loading, and unloading at NQN, where Crane Worldwide staff were ready to collect the equipment.

“We are looking forward to working together on future projects with our partners at Crane Worldwide.”

Antonov Airlines also provides rapid, airborne support for offshore oil well spills, and can transport fully assembled well capping stacks to significantly reduce emergency response times.

Air Cargo India

Network Airline Management (NAM) and Liege Airport extend their long standing relationship

Liege Airport, October 11th 2019

Network Airline Management (NAM) and Liege Airport are pleased to extend their already long standing working relationship for a further 3 years, cementing the cargo operation in Liege for the foreseeable future. Since Network moved their freighter operation to Liege in 2014, cargo levels have strongly increased with unprecedented growth across all sectors. This is mainly down to the introduction of various new freighter routes and destinations served from Liege. Liege airport is one of the most cargo friendly airports in Europe, with global connectivity by air and European connectivity by road, making it the perfect gateway for cargo operations.

NAM continues to expand its business and network out of the Liege hub, with its widebody freighters operating a minimum of 12 weekly flights into leading African destinations as well as operating charter flights globally. Liege welcomes this new extension as it confirms its leading position as the front running airfreight hub for the African market, committing to continuous support of this core market.

Liege airport offers 24/7 slots for widebody freighters and has dedicated infrastructure as well as processes for freighter operators, with airfreight, requiring more than just belly hold capacity. The airport workforce, local cargo community and service suppliers, gives the operators the required combination of flexibility, speed and cost efficiency.


“We have been able to grow our business over the last 5 years with the support of Liege Airport with their dedicated cargo infrastructure, we fully expect to continue developing and growing the business even further. Liege is ideally located as NAM’s European hub and offers the advantage of ease of access with a large road feeder service, as well as good widebody freighter connectivity into Asia and North America. This allows NAM to focus on the African content utilising more than 30 years expertise, and still being able to cater for the ever increasing global opportunities”, says Malcolm Higginson - Operations Director of Network Airline Management.

“It is our pleasure to continue and expand our contract with Network Airline Management and all their partners and customers”, says Steven Verhasselt, VP Commercial Liege Airport. “NAM brings a very specific expertise that fits perfectly with the #FreightersFirst strategy of Liege Airport. Africa is very important for Liege and the local cargo community. We see a lot of opportunities to continue growing the business with perishables inbound, as well as oil and mining equipment and general cargo outbound. We believe that Liege will grow into the eCommerce hub linking the Global Market to Africa, and Network Airline Management will be a crucial part of that fast developing, exciting, prospect for the Airfreight industry not only in Liege, but worldwide.”


Clients are demanding creative solutions from their logistics services providers to reduce costs in the Value Chain

Peter Canellis, PhD, PE

As the world economy goes through another round of belt tightening, the principles of ‘lean thinking’, originally developed to drive the operation of Toyota’s production system, have become prominent across many industries. Shippers are pressuring their materials suppliers, internal personnel, and logistics services providers to remove cost from the value chain.

There are basically two alternatives that confront suppliers and service providers in this environment: cut prices or help to cut waste. As logistics services providers, there are five areas in which we can do this:

1. Transportation - We can work with our clients to establish least cost routings, evaluate merge-in- transit opportunities, and select transport service levels in connection with postponement strategies that can save money in the physical movement of freight.

2. Cargo Handling - Evaluating package designs and pallet or container loadings can expose inefficiencies that inflate cost. Also, most clients have either too much inventory or inventory in the wrong locations, or both. This is yet another area with great potential for savings. In many cases, we can run a client’s distribution center operations more efficiently and cost-effectively than they can by retaining the function ‘in house’.

3. Export / Import Compliance - Opportunities may exist for duty reductions, fine reductions, drawback, and import entry consolidations.

4. Risk Management - Cargo insurance rates may be excessive, or claims and damage history may reveal structural problems in freight handling.

5. Product Sourcing - We can help our clients to perform ‘make versus buy’ analyses, and to identify alternative suppliers and supplier locations where such changes may have a significant effect on total value chain costs.

A cost reduction program must be tailored for each client. The starting point is a high-level analysis of critical financial ratios and trends. Next, business processes and related performance indicators are reviewed to identify and prioritize potential improvements. A pilot program is then initiated to validate the recommended improvements. Based on the results of the pilot program, the improvements are either fully implemented or modified as required.

Each of the five improvement areas discussed above that drive cost, and thus present opportunities for cost reduction, can be viewed from four perspectives: financial, process, technology, and organization. Each perspective generates a focused group of questions that need to be answered in the pursuit of cost reduction.

1.Financial - This is the ultimate ‘score card’. It prompts such questions as:
• Is the client company profitable?
• If it has multiple divisions, which ones are contributing to or subtracting from profitability?
• What is the company’s cost structure, and what are the details behind the logistics costs that are consolidated in its income statement and balance sheet?

2. Process - This is the detail behind what the client company does and how it does it. The process perspective elicits questions relating to operating efficiencies:
• What is the company’s ‘cash-to-cash’ cycle?
• How far in advance are parts and components ordered from suppliers?
• How much inventory is being carried?
• Is the inventory in the proper location to meet required service levels?
• Are parts and components shipped at premium rates, only to sit in a warehouse for extended periods?
• Is the company’s collection period inordinately long because it can’t produce invoices efficiently and correctly?

3. Technology - Technology, applied by the people who use it, allows them to perform the company’s business processes. This perspective focuses our thinking on issues such as:
• Although a company may have a sophisticated ERP system, is it lacking the logistics modules required to support its logistics operations
• How does the company share information with its suppliers and customers?
• What portions of the company’s logistics information system requirements should be fulfilled internally, and what should be outsourced?

4. Organization This perspective prompts questions about the client company’s main asset: its people. Specifically:
• Are the right people in the right jobs?
• Are proper levels of training being provided?
• Is information properly shared and disseminated throughout the organization?
• Should some people be re-focused away from work that is not the company’s core competence?

Using this approach, we can respond to our clients’ needs in new and constructive ways. If we don’t, it is a certainty that in today’s competitive environment, others will.

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

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Cool Chain partners to change mindset and join the revolution

Paris, France, Wednesday 25th September 2019

Cool chain partners are changing their mindsets to join shippers and start-ups shaping the supply chain of the future, delegates at the Cool Chain Association (CCA)’s Pharma and Biosciences Conference heard this week.

Updates and information about smart data applications, unmanned aircraft, and supplier management solutions were shared at the two-day event, attended by industry leaders from across the cool supply chain.

Pharma manufacturer Novo Nordisk has developed its own risk-based analysis solution using Big Data harvested from temperature loggers on its consignments to map performance and temperature excursions on trade lanes.

“We could see that our primary distribution spend was going up and we had to do something about it,” said Navid Choudhury, Senior Manager - Distribution and Logistics Network, Supply Chain Planning, Novo Nordisk.

“We realised there was huge potential by using the data that we already owned.

“We worked with that data to map the lanes, then we went to our logistics partners and connected our data with theirs so that we could identify performance on future shipments.

“We found collaboration easier because we were not trying to ask so much information from the airlines.”

Using the system, Novo Nordirk has scaled down costs, improved reliability, and can identify areas for improvement much more easily.

Drone start-ups Avy and Dronamics have set their sights on developing unmanned aircraft that will improve the final mile, and offer cost-effective, more environmentally friendly solutions.

Ivet Arabadjieva, Director of Business Development, Dronamics, said she felt the pharma and unmanned aircraft industries, which both have research and development at their heart, had a lot to learn from each other.

“This is still a work in progress, so the time is now to have a discussion,” she said.

“Tell us what you need, and we can come back with ideas and with costs.”

Avy founder Patrique Zaman said there were interesting opportunities from a business perspective, but also; “from the impact you can make if you dare to go a bit out of your own area of focus.”

“We are working really hard to make sure this new air ecosystem happens, and we have been focusing on tech, regulatory issues, and also use cases, but what we found really hard is to get in touch with the rest of the value chain,” he said.

“We need each other if we all want to step out of our bubbles and I invite you all to think today about what we can do and make sure we can help.”

Celine Hourcade, Founder, Change Horizon and Program Manager, The International Air Cargo Association (TIACA) said that despite not yet being cost-effective or scalable, there was a new emerging industry on its way and it was important to share information and not reinvent the wheel.

“The pharma and the air cargo industries have the knowledge and this must be transferred and shared with the new entrants, if that happens it will be a win-win situation,” she said.

Delegates also heard that the air cargo industry could make a difference to final mile delivery saving infant lives.

Dr Radhika Batra, Founder and President of Every Infant Matters explained the industry was helping by finding and promoting innovative solutions to bridge the gaps in the supply chain, with drones being just one example.

“There are 1.5 million children dying every year of vaccine-preventable illnesses and many more living with blindness and other disabilities that don’t need to be,” she said.

“The supply chain is only as strong as its weakest link and when the weakest link fails, it is the weakest who suffer.

“Major stakeholders must join together in this war against poverty and disease, if we come together, network, and share, we can surely make a difference.”

Stavros Evangelakakis, Cool Chain Chairman and Global Product Manager, Cargolux said the industry should be thinking about how to help improve the final mile in pharma.

“I am not suggesting that the air cargo industry can save all of those lives, but I want to be able to say that we came together and started a dialogue, which can help make things better,” he said.

Delegates also learnt about the benefits of Known Consignor certification from Bayer, as well as a 24/7 vaccine monitoring solution implemented in Iceland by Controlant, which has brought excursion rates below 0.5 percent for domestic shipments and rejection rates close to zero during storage and transportation.

South African Airways

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