Air freight to grow at slower pace over next 20 years

Air freight traffic has grown at 5.3 per cent annually since 1980. Today goods worth $6.4 trillion travel by air — that’s 35 per cent of all world trade by value.

The growth rate is expected to be 4.9 per cent for the next 20 years. This means by the year 2023 traffic will double, according to V.K. Mathews, Executive Chairman of IBS Software, based in Technopark here.

Minimal profit

However, the profit margins are going to be nominal, Mathews said while speaking at the IBS Air Cargo Forum held at Istanbul in Turkey recently.

IBS Software is a leading provider of solutions to the travel, transport and logistics sectors.

Held every six months, the IBS Air Cargo Forum brings together leading cargo airlines where experts debate how advancements in technology can be leveraged to optimise cost of operations and improve yields.

Airlines have no control over their biggest cost element, fuel prices, Mathews said. Capacity utilisation was less than 50 per cent, leading to yield erosion.

“These statistics need to be kept in mind as we devise strategies on how we conduct business going forward,” he said.

Supply chain

“We need to move on and make the best of a demanding situation. For 90 per cent of the time in the supply chain, the cargo is just waiting to be moved. This is where efficiencies need to come in.”

A digitised shipper-to-consignee process has to become the standard to not only shorten the delivery time but also reduce unit cost, Mathews added.

The two-day conclave in Istanbul saw the unveiling of the iCargo portal by IBS Software, which would enable greater adoption of E-freight.

The first phase of the portal is expected to be complete by November and the second phase by the next financial year.

At least 70 experts representing airlines such as South African Airways, Qantas, Hawaiian Airlines, Lufthansa, All Nippon Airways, Nippon Cargo Airlines and Turkish Cargo, attended the event.

Istanbul as hub

They discussed key issues shaping the global air cargo industry and shared insights on strategies to address some of the critical challenges facing them.

Gary Hoyle of South African Airways was appointed the new Chairman of the IBS Cargo Forum.

Meanwhile, Temel Kotil, Chief Executive Officer, Turkish Airlines, said in his address Istanbul was ideally positioned to be the global connection point for air travel within 10 years.

While Europe’s traditional airports were struggling to add travellers as weak economies hurt demand, Istanbul was racing ahead with double-digit growth, thanks largely to the success of Turkish Airlines.

Kotil said Turkish Airlines was one of the fastest growing airlines in the world and well-placed to have 120 million passengers and 450 aircrafts by the year 2023.

Source: http://www.thehindubusinessline.com/industry-and-economy/logistics/air-freight-to-grow-at-slower-pace-over-next-20-years/article5141007.ece

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Seaport operations company loads landship during training

JOINT BASE LANGLEY-EUSTIS, Va. - With clear, blue sky above and the hot afternoon sun shining down on the Vissering Landship Training Facility here, the 390th Seaport Operations Company out of Ceiba, Puerto Rico, is hard at work. The soldiers of the 390th SPOC are conducting their yearly Extended Combat Training exercise to learn new skills and refresh current skills as Army cargo specialists.

The training at the Vissering Landship is unique since it gives soldiers the chance to practice loading and unloading cargo and vehicles from a sea vessel while remaining on land. 

The types of training we are doing here is called a Logistics–Over-The-Shore operation, said Sgt. Carlos Garcia, a cargo specialist with the 390th SPOC. Garcia explained that the training involves loading and unloading cargo onto a watercraft, and roll-on and roll-off training for the vehicles being loaded onto a vessel. This is just one of many exercises they will be doing in preparation of the final live exercise, he said. 

The 390th SPOC leadership will be busy training their soldiers in all aspects of their job during this training event as cargo specialists. 

“We specialize in transporting cargo and personnel in planes, trains and sea vessels,” said Pvt. Richard Paul Lopez, a cargo specialist with the 390th SPOC. With so many aspects in which to train, the 390th SPOC will be working hard to give every soldier the best possible experience. Garcia said they are constantly rotating their training, and they will soon be training on tactical maneuvers while on convoys. With so much to learn and do, soldiers are constantly being challenged, he said. 

“So far it’s been great,” Lopez said. “It’s great, because the training never gets repetitive.” 

This training exercise gives the Soldiers a chance to work with equipment they don’t have access to back at their home station in Puerto Rico, said Sgt. 1st Class Luis Gonzales, a cargo non-commissioned officer with the 390th SPOC.

At the training site, the 390th SPOC continually emphasizes the importance of safety, especially for the junior-enlisted soldiers. Garcia said that safety is the main priority as well as refresher training. He said the training is important because it goes down to the basic soldier skills, from discipline to situational awareness, and that is why safety is so important. 

Along with safety, the need to know the job well and be able to perform is important. Gonzales explains that safety is a big part of this training, but we also have to take advantage of all the knowledge the instructors here have and learn from the experience of all the soldiers.

With so much to brush up on, and the need to train more than 150 Soldiers in land, air and sea cargo loading operations, the 390th SPOC is well on its way to guide all their soldiers to success. 

The chance to work with new equipment and being able to utilize the experience of instructors has the 390th SPOC running like a well-oiled machine.

Source: http://www.dvidshub.net/news/111180/seaport-operations-company-loads-landship-during-training#.UftMeORHL_I#ixzz2amzpMWOi

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US: Stricter cargo security to cost airlines $2.8m a year

The new measures, which include more scanning, might usher an increase of the maximum prices for flying shipments or the introduction of a security fee on exporters.

The price for sending air freight overseas could soon rise due to stricter US security demands that could halt flights to the United States if not carried out. The companies affected would be El Al Israel Airlines, United Airlines, Delta Air Lines and US Airways.  

Source: http://www.freshplaza.com/news_detail.asp?id=111688

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Airlines Braced for New EU Cargo Regulations

Russian carriers could be banned from transporting cargo from Russia to Europe if they fail to comply with new EU regulations that come into effect on July 1, 2014, Kommersant reported Monday.

Airlines who want to avoid the ban will need a third country to authorize their carrier status, but to achieve this they have to carry out audits on airport infrastructure.

The International Air Traffic Association said that the airlines themselves will have to pay for the audits — which could cost 18-60 million euros for each airport — and has offered to provide practical seminars to assist companies affected by the regulations.

Last Thursday Yevgeny Chibirev, head of the Association of Air Traffic Users, asked Transportation Minister Maxim Sokolov to provide recommendations to airlines on how to meet the requirements.

Chibirev said that Russian carriers will have to coordinate their flight safety programs with EU authorities and provide them with detailed information on the infrastructure of the airport from which the flight departed.

Cargo carriers argue, however, that airports are not obliged to provide them with the necessary information about customs points and security systems.

In 2010, the EU authorities decided to make cargo checks more rigorous after explosives were found in packages being shipped from Yemen to the United States.

A representative of Volga-Dniepr, the largest Russian cargo carrier, said he does not consider additional audits necessary because "all airlines and airports regularly have their safety standards checked."

The head of Novosibirsk's Tolmachevo airport called the initiative "an attempt to infringe on the rights of Russian airlines and create barriers in Russia on the cargo transportation market." He said the issue should be resolved on the government level.

Source: http://www.themoscowtimes.com/business/article/airlines-braced-for-new-eu-cargo-regulations/483796.html

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Freighters and belly cargo conference 2013

This year's Freighters and belly cargo Conference will be held at the Park Hyatt Hotel on Sadiyaat Island, Abu Dhabi from 29 September to 1 October 2013.

This is the 13th consecutive year we have held the Freighters World Conference – and this year we have included topics on belly cargo.

This two-day conference presents fantastic opportunities to network and socialise. Attended by delegates and speakers who can make things happen, make a difference and make change, you will not be disappointed.

Park Hyatt Abu Dhabi Hotel in the United Arab Emirates is an exclusive sanctuary for the discerning business and leisure traveller, located on a nine-kilometre stretch of environmentally protected beach on Saadiyat Island. The resort is adjacent to the famous Saadiyat Beach Golf Club, minutes from the city’s prime business district, the Abu Dhabi Corniche, and 25 minutes from Abu Dhabi International Airport. The island is only a 40 minute taxi journey from the business district of Dubai.

Source: http://www.aircargonews.net/events/book-event-form.html

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Cargo Airline of the Year 2014

The 31st anniversary of Air Cargo News awards evening, Cargo Airline of the Year, will take place at the Lancaster London Hotel on Saturday, 26th April 2014. If you need any further information about this Air Cargo News event, known throughout the airfreight world as the ‘Oscars’ of the air cargo industry, then please contact Patricia Cooper, General Manager of the Events Division on p.cooper(at)aircargonews.net or telephone +44 (0) 1784 255000

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