MCI (P) 002/07/2016 ISSN 2010-4227

The Trade Magazine for the Asia-Pacific & Middle East Regions Vol. 33, No. 9, September 2017

Nippon Cargo Airlines:

From the sea to the open sky

Kuehne + Nagel sets the bar for

innovation and integrated solutions

www.payloadasia.com Americas Supplement


The Air Cargo Magazine for the Asia-Pacific Region
Vol. 33, No. 9, September 2017
Publisher
Annie Tan | annie.tan@contineomedia.com
EDITORIAL
Cheryl Soh
Tel: +65 6521 9784 | cheryl@contineomedia.com
Contributors
Jackie Lee in Singapore, Karen E. Thuermer in United States,
Michael Mackay in Bangkok, Sharng G in India
SALES & AD ADMIN
Associate Publisher
Susan Ng
Tel: +65 6521 9773 | susan.ng@contineomedia.com
Marketing Executive
Ficus Zheng | ficus.zheng@contineomedia.com
Kenneth Peh | kenneth.peh@contineomedia.com
Ad Admin Executive
Chan Koe Shan
Tel: +65 6521 9748 | koeshan.chan@contineomedia.com
PUBLISHING SUPPORT
Editorial Production Manager
Pauline Goh | pauline.goh@contineomedia.com
Graphic Designer
Olive Chan | olive.chan@contineomedia.com
Web Operations Executive
Franco Nelo M. Sevilleja | franco@contineomedia.com
FINANCE
Finance Manager
Kenny Yeoh | kenny.yeoh@contineomedia.com
CEO
Raymond Wong | raymond.wong@contineomedia.com
Contineo Media Pte Ltd
61 Ubi Avenue 1, #0517, UB Point
Singapore 408941
Tel: +65 6521 9777
Fax: +65 6521 9788
Printer: Oxford Graphic Printers Pte Ltd
Payload Asia has been appointed by the 20 member
Federation of Asia Pacific Aircargo Associations as
official publication for FAPAA news.
Payload Asia is published eleven times a year by Contineo
Media Pte Ltd, located at 61 Ubi Ave 1, #05-17 UB Point,
Singapore 408941. All rights reserved. Please address all
subscription mail to Payload Asia at the above address, or
Fax (65) 6521 9766. For annual air-speeded subscriptions for
non-qualified subscribers, please contact Circulation department
at circulation@contineomedia.com.
Payload Asia is published monthly by Contineo Media Pte Ltd,
61 Ubi Avenue 1,#0517, UB Point, Singapore 408941. Material
in Payload Asia is copyright and may not be reproduced in any
form without the written permission of the editor.
www.payloadasia.com | September 2017
F R O M T HE ED IT OR
Bullish Air Cargo Forecast
F
ollowing such a successful first half, many believe this should carry on well into
the second half of the year. Especially, considering just how many facets of modern
day life heavily depend on air cargo. Moving high-value, time and temperature
sensitive cargo, from one side of the world to the other would not be conceivable
without it. For those of us who shop online, aviation has made it possible to actually
receive those purchases in next to no time, considering the distances they have to cover,
within a short time frame. Its hard to imagine a time when everyone relied on just sea
shipments for cargo.
Fun fact: Did you know that the word Nippon is the official Japanese language name
for Japan...?
In this issue of Payload Asia, we speak to Nippon Cargo Airline (NCA), Japans first
cargo airline. With its sights set on key routes across the transpacific, connecting Asia and
the US, NCA have recently entered into another agreement with Atlas Air, which will see
Atlas operating a second Boeing B747-400F on behalf of NCA from September onwards.
This partnership expansion follows the successful agreement they entered into in January
this year.
You will notice your copy of Payload Asia is a little heavier than usual this month, and
this is mainly due to the annual Americas Supplement. We present an overview of the
industry from the viewpoint of those living on the other side of the world. On a whole,
there is cautious optimism on the transpacific air cargo demand, where key industry
personnel are on the notion that over capacity and the strong US dollar are to be blame
for this impact on demand.
Be sure to join us at the Payload Asia Conference to participate in a more detailed
discussion and analysis on some hot topics set to impact the air cargo industry. This years
edition will be held at the Crowne Plaza Hotel in Singapore. Make sure you register for
the conference at conference.payloadasia.com
After what will be an informative, inspiring and enriching experience at the
conference, put on your Sunday best and join us as we celebrate the industry's best at
the Payload A sia Awards ceremony gala dinner. S e cure your table now at
awards.payloadasia.com
See you in Singapore!
MCI (P) 002/07/2016 ISSN 2010-4227
COV ER
The Trade Magazine for the Asia-Pacific & Middle East Regions Vol. 33, No. 9, September 2017
Nippon Cargo Airlines:
From the sea to the open sky
Since its inception, Nippon Air Cargo Lines (NAC), now Nippon
Cargo Airlines (NCA) has always prided itself on being able
to turn adversity into opportunities. The brainchild of ocean
shipping companies and airlines, the carrier has its foundations
Kuehne + Nagel sets the bar for
innovation and integrated solutions firmly rooted in the rich expertise of both sea and air cargo.
www.payloadasia.com Americas Supplement
Payload Asia speaks to the first cargo airline from Japan.
1
GATE W AYS
EUROPE & CIS
ABC boosts volumes
by 16%
AirBridgeCargo Airlines (ABC) has
reinforced its position as one of the
worlds fastest-growing freight carriers
by reporting a 16% increase in volumes
during the first half of 2017 to 335,000
tonnes, boosted by a particularly strong
demand across its Asia Pacific network.
ABC also achieved a 13% rise in freight
tonne-kilometres and a 4pp increase in its
load factor to 71% in this period.
The first six months of the year saw the
delivery of ABCs tenth latest generation
Boeing 747-8 Freighter, increasing the
total size of its 747F fleet to 17 aircrafts,
and further expansion of its network in
Asia Pacific. The launch of twice-weekly
services to Taipei marked the doubling of
the airlines online network in the region
over the last two years to 12 destinations;
Tokyo, Seoul, Singapore, Hanoi, Phnom
Penh, Hong Kong, Shanghai, Beijing,
Chengdu, Chongqing, Zhengzhou and
now Taipei.
ABC has seen high demand for cargo
capacity to and from Taipei, particularly
for the delivery of hi-tech products, and is
now carrying some 1,000 tonnes a month
on the route. Overall, the airlines business
to and from Asia Pacific rose by over 20%
in the six months ended 30 June 2017.
The first half of the year also saw a
rise in ABCs pharmaceutical volumes
and further growth for the airlines Off-
size Cargo product. ABCs strong focus
2 PAYLOAD ASIA | September 2017
on pharma is continuing to drive its
growth. As well as being the first airline
in Russia and only the seventh carrier in
the world to gain IATAs CEIV Pharma
certification, ABC has also developed
Moscows Sheremetyevo international
airport as its global pharma hub.
DHL stations in Hamburg
and Frankfurt gain IATA
CEIV Pharma Certification
DHL Global Forwarding, the air and
ocean freight specialist within Deutsche
Post DHL Group, certified its air freight
stations in Frankfurt and Hamburg
according to the CEIV Pharma Standard
of the International Air Transport
Association (IATA). Following Leipzig
earlier this year, two more German
DHL sites have received the CEIV
Pharma Certification of the aviation
industrys umbrella association. The
certification attests the highest service
and quality standards for life sciences and
healthcare customers.
The DHL Thermonet Station in
Leipzig was the very first German station
of DHL Global Forwarding receiving
this quality label in April 2017. Now
the stations in Frankfurt and Hamburg
have acquired the IATA CEIV Pharma
certification as well.
With its international network, DHL
offers at all of its Air Thermonet locations
a wide-ranging product portfolio, covering
all client needs for time and temperature
sensitive airfreight shipments.
Swissport receives IATA
CEIV Pharma Certification
With the increasing flow of Life
Science & Healthcare shipments over
the past few years, maintaining a stable
and secure supply chain requires specific
equipment, storage facilities, harmonized
handling procedures and above all,
strong cooperation among the cool chain
partners. Swissport The Netherlands
started to develop a dedicated product
line for the handling of Life Science &
Healthcare shipments. With the recent
acquisition of Terminal 9, the scope for
this product line was broadened and today,
all of Swissports operational activities in
the Netherlands (both Terminal 9 and
11) are successfully awarded by the IATA
CEIV certification.
IAG re-affirms confidence
in A330-200
Following the recent and hugely
successful launch in Barcelona of
International Airlines Groups (IAG),
LEVEL, the Group has selected the A330-
200 as its aircraft of choice to further
expand operations.
LEVEL began operating in June
2017 with flights from Barcelona to
Los Angeles, San Francisco (Oakland),
Buenos Aires and Punta Cana.
The A330 is one of the Worlds most
efficient and versatile widebody aircraft
making it the benchmark product
for the growing low cost long-haul
model worldwide.
GATE W AYS
BIFA names new national
chairman
Mark Bromley
John Stubbings
Mark Bromley has succeeded Fred
Osborn as the elected National Chairman
of BIFA the British International
Freight Association.
Osborn becomes Immediate Vice-
Chairman for a two-year term. Alongside
him is John Stubbings, group director
and company secretary of the Woodland
group who was elected Vice-Chairman
by the board.
Sir Peter Bottomley, MP, remains as
BIFA president.
Bromley has been associated with
BIFA for many years, working for BIFA
Member Allways International Freight
Forwarding. He was previously Chairman
of BIFAs Surface Policy Group.
New appointment at
Fraport AG
As of October 1, Felix Kreutel will
take over as head of Fraport AGs
Cargo Development & Management
department. Kreutel will succeed Dirk
Schusdziara, who has successfully
held this position for the previous two
years. Schusdziara will become head
of the Commercial Affairs department
at Fraport AGs Airside & Terminal
Management, Corporate Safety &
Security strategic business unit, where
his responsibilities will include Fraports
airport charges policy.
4 PAYLOAD ASIA | September 2017
Kohnen completes
executive board at
time:matters
Alexander Kohnen has been appointed
the new managing director Strategy &
Sales at time:matters Holding GmbH,
effective 15 November 2017. He succeeds
Franz-Joseph Miller, who left the company
in July 2017. Kohnen has held various
management positions at Lufthansa Cargo
since October 2000, most recently senior
director Industry Development & Product
Management and previously director
Nordic & Baltic Countries.
Lufthansa Cargo took complete
ownership of the time:matters group,
which specializes in global special speed
and time-critical international spare
part logistics, in August 2016. The cargo
airline, which spun off time:matters as a
subsidiary in 2002, had held a 49% share
prior to that. Christian Mrtl, previously
Head of Aircraft Handling at Lufthansa
Cargo, was appointed managing director
Operations & Finance at time:matters on
August 1st, 2016.
Cargologicair launches
UK-Mexico operations
CargoLogicAir (CL A), the only
British all-cargo airline, launched its first
maindeck services connecting the UK and
Mexico in August 2017.
Tw ice- we ek ly B o eing 747-400
flights will depart from CLAs base at
London Stansted Airport to Mexico City
International Airport via Hartsfield-
Jackson Atlanta International Airport.
The full aircraft routing, which sees
ABCs 747 freighter also operating via
Houston, Frankfurt and Abu Dhabi
enables CLA to also offer customers a
wide choice of Europe-Mexico, Europe-
Middle East and US -Middle East
connections.
In the Middle East, CLA is providing
road feeder services to also offer customers
fast deliveries to Dubai International
Airport, Dubai World Central and
Sharjah. Over Frankfurt, it will also
link up with the global network of its
partner airline, AirBridgeCargo, enabling
CLA to offer onward connections to
APAC region.
CLA, which offers a total cargo
capacity of over 200 tonnes a week
on its new routes, has also appointed
Aerocharter as its GSA partner in
Mexico, AirCargoAmericas in the US
and AirFreightLogistics in Europe.
The carrier was awarded its Air
Operator Certificate (AOC) by the UK
Civil Aviation Authority at the start of
2016. Since then, it has been providing
global charter services and supporting
ACMI contracts. The launch of its first
scheduled route follows the delivery of
CLAs third Boeing 747 freighter in May
2017. The airline has reported strong
customer demand in the first half of 2017
with its ACMI and charter operations
growing 44% year-on-year.
1GSA moves into Russia
with TEK Poseidon
1GSA the ne w network for
independent cargo GSSAs has
appointed Moscow-based TEK Poseidon
as its member for Russia. 1GSA now has
members in 12 countries and pending
applications for several more.
TEK Poseidon was founded in 2002
by partners with extensive experience in
freight and logistics; it has since developed
into a substantial group of businesses
GATE W AYS
spanning diverse activities such as
forwarding, road transport, express,
warehousing, liner agency, and ocean
consolidation. It has bases in Moscow,
Saint Petersburg, Riga, Klaipeda, Helsinki,
Minsk and Hamburg; a further office is
planned in Tashkent, Uzbekistan. The
TEK Poseidon air cargo GSSA operation
is the groups newest activity.
Turkish Cargo sees 24%
increase on y-o-y growth
during H1 2017
Turkish Cargo, which has launched
seven new service points over the last two
months, totalling 72 cargo destinations
by the end of August 2017 from 55 at
the beginning of 2016. Having generated
a wide corridor extending to Africa
from Asia, and to the Latin America
from Europe, Turkish Cargo had a very
successful first half of 2017.
The carrier has accomplished an
increase of 24.4% with respect to its
revenue and 26.1% with respect to the
cargo carried on year-on-year basis, as
of the end of June.
Thanks to the aircraft fleet it has
leveraged, Turkish Cargo boosted its
extensive flight network, and made an
indelible impression on the international
market with the addition of two Boeing
747-400 freighters. The increase in
freighters also led to better utilization of
the capacity.
Turkish Cargo ranked in the top ten of
the international air cargo carriers based
on the data presented by WorldACD
in June 2017. Having reinforced its
growth momentum with its regional
accomplishments, the carrier has become
the third air cargo company linking up
Pakistan, Poland and the United Arab
Emirates to the world, and the fifth
air cargo company linking up Austria,
Bangladesh, Egypt and Finland to the
world, gaining a growth success of 46.8%
in the Chinese market.
ASIA
Luo Gang appointed
to lead China Airbus
innovation centre
Luo Gang has been appointed CEO
of Airbus new innovation centre to be
set up in China.
With a degree in electrical engineering
from Tianjin University and an MBA
from the London Business School, Gang
www.payloadasia.com | September 2017
spent nearly three years establishing
Uber Chinas business before it was
acquired by Didi Chuxing in 2016. His
experience in London with UK start-
up Rangespan taught him how quickly
technology can transform traditional
businesses.
Chinas fast-paced start-up culture
makes it an ideal place for Airbus to
create a new innovation centre. Growth
has come to China from manufacturing,
technology and finance nowadays.
Gangs first mission will be to set up the
innovation centre to be fully operational
when it officially opens in late 2017. In his
role, Gang will report to Paul Eremenko,
Airbus CTO.
The new Airbus innovation centre,
which is tasked with defining the future
of flight by identifying the next big
change to transform the aerospace sector,
will serve to strengthen Airbus extended
innovation eco-system.
Vincent Yong takes the
helm at DHL Global
Forwarding Indonesia
Vincent Yong, the new Managing
Director of Indonesia for DHL Global
Forwarding, the leading international
provider of air, sea and road freight services,
is no stranger to complicated situations.
As chief operating officer of DHL
Global Forwarding Thailand, Yong
steered his team through political
upheaval in 2006, catastrophic floods
in 2011 and numerous changes to the
countrys transport infrastructure
significantly expanding the business
and consolidating operations in a
100,000-sqft Multimodal Hub at
Suvarnabhumi Airport in the process.
Japan Airlines and Vietjet
launch comprehensive
partnership
Japan Airlines (JAL) and Vietjet have
signed a formal partnership agreement.
This will see them start a code-
share cooperation for all flight services
between Japan and Vietnam.
This is only the first step as JAL
and Vietjet are already making plans
to further explore opportunities to
develop the partnership in various areas,
including a frequent flier partnership,
aircraft operations and maintenance
as well as ground handling services
and training.
We believe it will contribute to not
only generate more passengers, but cargo
traffic between the two countries; as well
as open up commercial opportunities
on the two airlines international
networks, said Tadashi Fujita, JAL
executive vice president.
Luu Duc Khanh, managing director
of Vietjet, said: Through the agreement
signed with JAL today, Vietjet once
again affirms the airlines commitment
to innovation, leading market trends,
and offering new services following the
global integration and international
standards. Japan is our key market as
we expand the airlines flight network in
the Asia-Pacific region. The partnership
between Vietjet and JAL will diversify
our air transportation products and the
market segment while developing the
two airlines relationship.
Together with Vietjet, JAL will be
striving to deliver greater conveniences
and variety of choices to customers
with a more comprehensive network
in Asia.
5
GATE W AYS
Overall increase for
Cathay Pacific compared
to July 2016
Cathay Pacific and Cathay Dragon
carried a total of 179,691 tonnes of cargo
and mail during the month of July, an
increase of 13.7% compared to the same
month last year. The cargo and mail load
factor rose by 4.0 percentage points to
68.7%. Capacity, measured in available
cargo/mail tonne kilometres, was up by
4.5% while cargo and mail revenue tonne
kilometres (RTKs) increased by 11%. In the
first seven months of 2017, the tonnage
rose by 11.9% against a 2.6% increase in
capacity and a 9.2% increase in RTKs.
MIDDLE EAST
100 percent compliance
for Qatar Airways in
2017 IATA IOSA
Qatar Airways has achieved 100 per
cent compliance in the IATA Operational
Safety Audit (IOSA), verifying its status
as one of the worlds safest and most
secure airlines.
As a leader in aviation safety, the
airline has demonstrated a strong safety
and security performance record. It was
the first airline to complete the IOSA
audit with 100 per cent compliance in
2003, and has since completed the audit
in 2005, 2007, 2009, 2011, 2013 and
2015, achieving 100 per cent compliance
each year.
Not only does Qatar Airways have a
proven track record of active compliance
with international regulatory safety and
security requirements, it is consistently
among the first airlines to accommodate
EU, UK and US immigration and enhanced
security requirements.
The IOSA programme enables airlines
to review their safety processes using a
6 PAYLOAD ASIA | September 2017
worldwide standard that has become the
single internationally-accepted safety
and security audit process for airlines.
Under IOSA, accredited auditors assess
an airlines operational management and
control systems, including the areas of
corporate organisation and management,
flight operations, operational control,
flight dispatch, aircraft engineering and
maintenance, cabin operations, aircraft
ground handling, cargo operations and
operational security.
Oman Air and Malaysian
Airlines ink code-share
Oman Air and Malaysia Airlines have
entered a code-share partnership that will
take effect immediately.
This partnership will pave the way
for closer co-operation between the two
airlines on a range of joint initiatives,
including collaboration on frequent
flyer programmes, ground handling,
customer support, cargo and airport
lounge access.
flydubai receives first
Boeing 737 MAX 8
Boeing and flydubai celebrated the
delivery of the airlines first 737 MAX
8, marking the Middle East carrier the
first in the region to operate Boeings
newest aircraft. The delivery is the first
of 75 737 MAX airplanes the airline will
be adding to their all-Boeing fleet of 58
Next-Generation 737-800s.
As the first MAX customer in the
region, we look forward to the further
fuel and operating efficiencies that this
aircraft will bring to our young modern
fleet, said Ken Gile, chief operating
officer, flydubai. Our flight crew share
our excitement in operating one of the
most highly anticipated commercial
aircraft to enter service on our network.
The 737 MAX is the fastest-selling
airplane in Boeing history, accumulating
more than 3,800 orders to date from 89
customers worldwide.
AMERICAS
IFACP launches in Canada
The new IATA FIATA Air Cargo
Program (IFACP) has been launched
in Canada.
The program, which will be rolled
out globally following the Canadian
pilot, replaces the existing Cargo Agency
Program, and will be jointly managed by
forwarders and airlines as equal partners
in the decision-making process.
A new IATA-FIATA Governance
Board (IFGB) has been established to
run the program, which provides a
framework of industry standards that are
relevant and in line with best practices
and safety regulations.
Existing Cargo Agency Program
members will join IFACP with no further
assessment and will continue their
existing enrolment in Cargo Account
Settlement Systems (CASS), which
remains unchanged under the jurisdiction
of the Cargo Agency Conference.
The new IFACP Freight Forwarder
Agreement shall govern the relationship
between freight forwarders and air
carriers participating in the Program.
IFAC P prop erly addresses the
principal-to-principal relationship
between freight forwarders and airlines,
helping to clarify liability issues on cargo
claims, as well as supporting members to
work towards key industry goals such as
e-freight adoption, he concluded.
D u r i n g th e ro l l o u t , c u r re nt
par ticipant s of the I ATA C argo
Agency/Intermediary Program will be
provided with a new agreement and will
automatically join IFACP and continue
their existing enrolment in CASS once
they have signed and returned the
paperwork. New applicants will need
to submit a form and meet the defined
financial and operational criteria.
GATEW AYS

Upcoming Supplements
October Maindeck (freighters and conversions)
November Payload Asia Conference & Awards
Advertising offices: Worldwide South Korea December/January Ground Handling
Susan Ng Kwangsok Hong
Tel: +65 6521 9773 Tel: +070 8880 1745
Fax: +65 6521 9788 Mobile: +010 9886 0729
Email: susan.ng@contineomedia.com Email: kshong2000@nate.com

Japan United States, Canada

Katsuya Watanabe Matt Weidner For editorial participation and contributions please contact
Tel: +81 90 5321 6881 Tel: +1 610 486 6525
cheryl@contineomedia.com. For advertising in supplements, please
Fax: +81 3 6823 8994 Fax: +1 610 486 6527
Email: kwatanab@crocus.ocn.ne.jp Email: mtw@weidcom.com contact Susan Ng at email: susan.ng@contineomedia.com or call her
at +65 6521 9773 or +65 8499 0096 (GMT +8).

2017 CALENDAR OF EVENTS

Sep 19 21 Air Cargo Handling Conference 2017, Budapest Oct 18 20 TIACA Executive Summit 2017, Florida

Sep 26 28 POST-EXPO 2017, Switzerland Oct 24 25 Post & Parcel Services: Asia Pacific, Beijing

Oct 4 8 FIATA World Congress 2017, KL, Malaysia Nov 1 3 Air & Sea Cargo Americas 2017, Florida

Oct 9 11 World Mail & Express Asia, Shanghai Nov 8 10 14th China Air Cargo Summit, Tianjin

Oct 10 13 Inter Airport Europe, Germany Nov 23 24 Asian Logistics and Maritime Conference, Hong Kong

Oct 11 12 Payload Asia Conference and Awards 2017, Singapore

www.payloadasia.com | September 2017 7

TR E ND S
Air Cargo posts strongest
H1 growth since 2010
The International Air Transport
Association (IATA) released data for
global air freight markets showing that
demand, measured in freight tonne
kilometers (FTKs), grew by 10.4% in the
first-half of 2017 compared to the first-
half of 2016. This was the strongest first
half-year performance since air cargos
rebound from the Global Financial Crisis
in 2010 and nearly triples the industrys
average growth rate of 3.9% over the last
five years.
Freight capacity, measured in available
freight tonne kilometers (AFTKs), grew
by 3.6% in the first half of 2017 compared
to the same period in 2016. Demand
growth continues to significantly outstrip
capacity growth, which is positive
for yields.
Air cargos strong performance in the
first half of 2017 was confirmed by Junes
results. Year-on-year demand growth
in June increased 11% compared to the
same year-earlier period. Freight capacity
grew by 5.2% year-on-year in June.
The sust aine d g row th of air
freight demand is consistent with an
improvement in global trade, with new
global export orders remaining close to
a six-year high. However, there are some
signs that the cyclical growth period
may have peaked. The global inventory-
to-sales ratio has stopped falling.
This indicates that the period when
companies look to restock inventories
quickly, which often gives air cargo a
boost, may be nearing an end. Regardless
of these developments, the outlook for
air freight is optimistic with demand
expected to grow at a robust rate of 8%
during the third quarter of this year.
Innovative sun protection
for refrigerated freight
With the expansion of the Lufthansa
Cargo Cool Center in Frankfurt and the
Road Feeder Service Cool first of its
kind in the world Lufthansa Cargo
is pushing forward with its offensive
in the refrigerated freight sector.
Every customers cargo in the passive
refrigeration sector worldwide will now
be protected without any added fees by
a reflective film produced exclusively for
Lufthansa Cargo.
Lufthansa Cargo keeps its transit times
between its facilities and aircraft as short
as possible. The innovative reflective
8 PAYLOAD ASIA | September 2017
film provides sensitive shipments
with optimum protection against the
unavoidable sunlight on airport tarmacs
around the world, even on hot days.
dnata goes green
dnata, one of the worlds largest air
services providers, has ramped up its
recycling programme for its fleet of
12,000 units of GSE (Ground Services
Equipment) in both of its Dubai hubs
(DXB and DWC).
Since the launch of the recycling
programme this year, over 80 units
of GSE have been renewed at the
GSE maintenance base, reducing waste
generated from GSE by 110 tonnes while
passing all safety and quality checks.
The projection for 2017 is an estimated
140 pieces of GSE being recycled,
saving the company approximately over
AED 13 million, and reducing waste by
250 tonnes.
As GSE reach the end of their life cycle,
they were previously replaced with newer
versions. However, given the sturdy and
enduring nature of the machinery, the
GSE mostly simply required a mechanical
overhaul to be put back into service. The
dnata GSE maintenance facility, located
at DXB airport spans 36,000 sqm and
employs 1,145 dedicated team members
who carefully check the GSE for any faults
before replacing parts that need renewing,
therefore extending the lifespan to up to
18 years.
Emirates SkyCargo goes
Xtreme with temperature
protection
As part of its endeavour to offer
customers with a wide range of
innovative cool chain temperature
solutions, Emirates SkyCargo, is rolling
out a new white cover solution developed
in collaboration with DuPont. The
new White Cover Xtreme will offer
enhanced protection for temperature
sensitive cargo in hot, cold and wet
weather conditions.
The new triple layered cover acts
as a shield reflecting solar heat when
temperatures are high and as a barrier
for conduction preventing heat from
escaping when temperatures are low
thereby helping maintain cargo internally
at the right temperature. In addition,
White Cover Xtreme is breathable
and allows water vapour to escape
preventing condensation from forming
White Cover Xtreme
on the surface of cargo and affecting
the integrity of the shipment; acting as
a single solution that offers a high level
of protection in harsh winter as well as
summer weather conditions.
Emirates SkyCargo is the first air cargo
carrier globally to be introducing the
white cover protection solutions focused
on ground handling. The two companies
worked extensively on ground trials for
White Cover Xtreme and roll out for
customers began in late August 2017.
Air freight still on the rise
According to Airport Council
International (ACI) air freight delivered
very strong results for the first half of
2017 overall, although the pace of growth
slowed in the second quarter. Among the
top 10 freight airports in the Asia-Pacific
and Middle East combined, half recorded
double-digit growth for the year-to-date.
Air freight growth going into the second
half of 2017 is expected to remain solid.
During June 2017, air freight in Asia-
Pacific grew +8.8% while the Middle
East grew +1.6%. For the year-to-date,
the two regions gained 10.1% and 6.6%
respectively from last year.
Exports continued to drive strong air
freight growth in the Asia-Pacific in June:
Hong Kong (HKG) +11.4%, Shanghai
Pudong (PVG) +14.8% and Seoul Incheon
(ICN) +5.1%. In the Middle East, the pace
of growth continued to soften and many
airports recorded a contraction. The
largest hub in the region, Dubai (DXB)
declined -4.7%, while Doha (DOH) was
the exception, delivering growth of +17%
for the month.
AIRP ORTS & G R O U N D H A N D LING
Hactl outperforms market
with 16.6% growth
Hong Kong Air Cargo Terminals
Limited (Hactl) Hong Kongs only
independent cargo handler has
achieved a 16.6% increase in handled
tonnage in the first half of 2017.
Th e t o t a l o f 8 6 0 , 2 4 2 t o n n e s
represents growth in exports, imports,
transhipments and mail/express. Hactl
has now outperformed the Hong Kong
market every month since September
2016.
At the same time, the number of
charter flights handled by Hactl grew
from 100 during H1 2016 to 602 in the
same period of 2017.
Hactl attributes the results to a
number of factors, including continuing
modal shift from sea to air, overflow
from mainland Chinese airports ,
and the continuing strengthening of
e-commerce traffic.
E-commerce remains a major driver of
imports and exports to and from China
via Hong Kong. Hactls value-added
logistics arm, Hacis, continues to pursue
opportunities to the benefit of Hactls
carrier clients such as its work with
postal authorities to provide a viable
alternative for outbound mail from China
that contains e-commerce items. We
are now handling 1000 mail bags every
day, and that is providing welcome extra
revenue for our airline customers, says
Hactl chief executive, Mark Whitehead
The growth in e-commerce has also
been instrumental in the dramatic rise
in Hactls charter handling business; but
this has also been driven by static fuel
costs that have given older freighters a
reprieve, as well as by Hactls decision
to establish a dedicated charter team to
facilitate freighter operators use of Hong
Kong, through all-inclusive service.
Hactl expects the growth trend to
continue for the rest of 2017, but at a
slower pace.
LUG adds Emirates to
customer portfolio in
Frankfurt
LUG Air-cargo handling has announced
that it has agreed on a service contract
with Emirates that will come into effect
in October 2017. Emirates currently
operates passenger aircraft three times a
day between Frankfurt-Main and Dubai
and eight all-cargo flights per week. LUG
will handle the belly cargo as well as road
10
feeder services (RFS) and cargo from
freighters for SkyCargo.
As one of the leading global cargo
carriers SkyCargo has strong capabilities
to transport temperature and time
sensitive cargo, while offering several
innovative, special solutions for these
product categories such as Emirates
Pharma and Emirates Fresh.
The largest cargo
terminal in the Russian
Federation is completed
Sheremetyevo International Airport
successfully completed construction of
an automated Moscow Cargo terminal
with an area of 43,000 square metre and
annual capacity of 380,000 tons of cargo.
Implementation of this unique project
was carried out within the framework of
the program of Sheremetyevo Airports
development and modernization for the
2018 FIFA World Cup and the far future.
Commenced in March 2016 and completed
in July 2017, the construction works were
performed within a very short time, in an
intensive mode and with high quality.
The new cargo terminal meets all
modern requirements in the area
of ground cargo handling, and to a
considerable extent, exceeds the level of
technical equipment of similar facilities
in Russia. Thus creating favourable
conditions for further development of
the global cargo hub at the premise of
Sheremetyevo Airport, in partnership
w i t h Vo l g a - D n e p r G r o u p a n d
Aeroflot PJSC.
At the moment, works at the facility
are being carried out to test equipment
for cargo handling and storage, as well as
to test information systems.
Cargo volumes at
Schiphol top a record
866,713 tonnes
Cargo volumes at Amsterdam Airport
Schiphol grew 8.7% to 866,713 tonnes
between January and June 2017, up from
797,069 tonnes during the same period
in 2016.
Europes third busiest hub welcomed
an additional 153 full freighter flights
in the first half of the year, making a
total number of 8,954 freight ATMs,
and handled a record 148,765 tonnes
in June, up 9.8% on June 2016 figures of
135,528 tonnes.
Volumes to the Far East grew to 27,706
tonnes in June 2017, up 15% on June 2016
figures of 24,091 tonnes, with inbound Far
East volumes reaching 26,511 tonnes in
the same month, up 14.1% on June 2016
figures of 23,230 tonnes.
Half-year figures for the Far East were
154,866 tonnes for outbound, up 12.2% on
the same period in 2016, with inbound
figures at 149,836 tonnes, up 8.3% on the
same period in 2016.
Schiphols new Compliance Checker,
launched in May, speeds up cargo flows
by detecting data errors and Customs
compliance errors in air waybills will help
boost e-Commerce flows through the hub.
The Community has also recently
secured a one million EUR grant to start
PAYLOAD ASIA | September 2017
AIRP ORTS & G R O U N D H A N D LING
developing a Pharma Incursion Alerter,
an early warning system for shippers, and
a pilot phase for the scheme is currently
being planned.
Flying horses spotted at
Budapest Airport
Fourteen racehorses bred in Hungary
were flown to China on board a Cargolux
Boeing 747. The Friesian and Shagya
Arabian horses, trained specifically for
combined driving, took off from Budapest
Airport in special freight containers,
accompanied by a team of carers and
vets, on their way to a new owner,
via Luxembourg.
More than a dozen Hungarian
racehorses were waiting to board in a
ground handlers warehouse at Budapest
Airport, in special freight containers,
prepared with great care for the long
journey to Beijing and then to Wuhan.
They were placed in the cargo hold of
Cargoluxs modern Boeing 747-8F.
Budapest Airport handled more than
72,000 tonnes of cargo in the first half
of the year, an increase of nearly 20%
compared to 2016.
Ren Droese, Property and Cargo
Director for Budapest Airport said:
Given the growth in live animal exports,
Budapest Airport plans to build facilities
dedicated specifically for animals in the
new cargo base to be constructed over the
coming years. Thus, in a few years time,
it will be possible to fly almost any animal
requiring special treatment or care from
Budapest Airport, to any part of the world.
DELIVERING BETTER
CUSTOMER SERVICE.
www.payloadasia.com | September 2017
Budapest Airport is transforming its
cargo facilities as part of its EUR160
million (HUF50 billion) BUD:2020
Development Programme, which includes
two recently opened state-of-the-art
integrator buildings, and a dedicated
freight centre called Cargo City, due to
be completed in 2019.
Turkish Cargo achieves
QEP Accreditation
Turkish Cargo has officially received
the Qualified Envirotainer Providers
(QEP) Accreditation from Envirotainer at
its hub Istanbul Atatrk Airport (IST).
This brings the total number of Turkish
Cargo accredited stations to six. The
five other stations across its network
are Mumbai (BOM), Hyderabad (HYD),
Frankfurt (FRA, Tel Aviv (TLV) and Seoul
(ICN). With these six accredited stations,
Turkish Cargo demonstrates its credibility
in handling Envirotainer containers and
cold chain shipments.
Turk ish C argo ha s a sp e c if ic
department who are dedicated to handling
pharmaceuticals and life science products.
The carrier takes their contribution to the
industry very seriously, with the special
cargo division constantly being enhanced.
Jettainer expands leasing
services for flying stables
Jettainer, a leading international
service partner for outsourced ULD
management, is expanding its leasing
services. Comfortable transport boxes for
horses can now be made available at short
notice. The special ULDs can be leased for
one day or up to several months, and a
wide variety of ULDs can also be leased
from Jettainer at times of peak demand
via a 24-hour hotline.
The stables are now available for
transporting the elegant four-legged
creatures above the clouds from thein
Frankfurt and, if required, from any
other destination around the globe. The
special design of the horseboxes, which
can transport up to three animals, not
only makes it easy for the animals to enter
with its particularly broad ramp, but also
has an adjustable partition in the upper
area that provides ideal visual protection
between the horses. Modern polymer
materials inside the box and a non-slip
stand ensure that the animals can travel
without injuring themselves.
If the horsebox has to be returned
empty, it can be collapsed using a foldable
drop top and transported on the lower
deck to save space. This means that
the flying horseboxes are not only safe
and comfortable for the animals, but
are also efficient and save space when
being handled.
11
COV E R S TO RY

Nippon Cargo Airlines:

From the sea to the open sky
Since its inception, Nippon Air Cargo Lines (NAC), now Nippon Cargo Airlines (NCA) has always prided itself on being able
to turn adversity into opportunities. The brainchild of ocean shipping companies and airlines, the carrier has its foundations
firmly rooted in the rich expertise of both sea and air cargo. Payload Asia speaks to the first cargo airline from Japan.

I
n the early days there wasnt much
need for a standalone air cargo entity
in Japan. The shipping companies
were able to meet all the demands
to bring the necessary cargo into the
country. However, this all changed in
the 1960s, with the introduction of
passenger aircraft that could stow away
small amounts of cargo under the floors,
boosting the air cargo industry the
world over.
As with the rest of the world, the
Japanese ocean shipping industry
took notice and had a keen interest in
establishing a more comprehensive cargo
system that linked both the sea and sky
in Japan. In a mere five years, the amount
of cargo carried to and from Japan
increased by almost 30,000 tons, further
highlighting the industrys potential.
Thus began plans to create what is
now known as Nippon Cargo Airline
(NCA), the first cargo airline in Japan.
Resilience in the face of
adversity
Seven years after its establishment
and inaugural flight, NCA found itself
operating in what quickly became a
Ichiro Watanabe, VP and General
Manager Business Planning and Strategy,
Nippon Cargo Airlines
stagnant market. There was a sudden
rapid decline in demand for cargo, mainly
caused by the recession in the United
States of America.
Differentiation is a strategy long
employed by NCA to meet customer
needs, turning negatives into positives.
The carrier adopted a company-wide
sales strategy to engage forwarders
more aggressively and increase customer
relationship development. With its
flights heading to America leaving
Narita International Airport (Narita:
NRT) at 8:30 pm, compared to most that
departed at 10:30 pm, NCA was able to
offer customers earlier arrival, which also
meant a higher possibility of same day
customs clearance and earlier delivery.
We deliver faster than the competition.
Complemented by the increase in time
and attention paid to each shipment
resulting from the low volumes, the
carrier was able to build a higher degree
of trust with its customers.
Today, the carrier still places a very
high value on diversifying its product
portfolio to meet customer needs.
This is but one of the many strategies
it has adopted to differentiate itself
in the competitive market. One of
NCAs advantages is that we operate a
cutting-edge B747-8F fleet mainly on
the transpacific trunk line, in which
the biggest demand growth is expected
compared to other trades, explained
Ichiro Watanabe, VP and GM Business
Planning and Strategy Nippon Cargo
Airlines, on one of the carriers key
components to the carriers main
differentiation strategy.
NCA currently operates 25 flights
per week linking Asian gateways to
major gateways in the US; with the plan
to increase this to approximately 30

12 PAYLOAD ASIA | September 2017

COV E R S TO RY
flights per week by the year 2020 in order
to keep up with forecasted customer
demand. According to Watanabe,
NCA plans to be the biggest main deck
provider on transpacific routes.
In addition to the transpacific routes,
it also operates four transcontinental
and round world flights per week,
respectively. Maximizing on round
world flights, which go from Narita to
Ted-Stevens Anchorage International
Airport (Anchorage: ANC), to OHare
International Airport (OHare: ORD),
to Frankfurt Airport, to Milan-Malpensa
Airport and back to Narita; NCA is
also able to provide its customers with
transatlantic services through the fifth
freedom traffic right.
Watanabe went on to add, We
also have a dedicated charter team,
providing a combination of both sales
and operations, to cater to charter
demands and provide tailor-made
exploring new markets through Atlass Keeping up with the times
operations and network. In the meantime, NC A is not
solutions. Handling more than 150 There are many opportunities that resting on its laurels and waiting for
charters annually, we also provide opened up from the partnership we have opportunities, but working to create
ground handling such as build-up and formed with Atlas Air. An immediate them. Apart from differentiation,
breakdown on site. As this is under NCA benefit has been derived from Atlass the carrier has a strong culture of
supervision, we are able to guarantee our flexibility and ability to rapidly change embracing innovation and technological
customers the NCA value and quality we flight routing, which brings additional advancements. As such, they fully
are renowned for. value to NCA and its customers by support the idea of introducing and
allowing us to accommodate demand adopting digitization to create a more
Added Value changes in a timely manner, he said. seamless and transparent air cargo
The first half of the year has been The network flexibility that Atlas has industry for all stakeholders.
very upbeat in the air cargo industry, allows them to re-route flights on a short- The carrier is currently using the
showing steady growth, especially during term basis; flying directly to where there first generation of iCargo by IBS
the month of June. This was no different is a need in order to meet demand, fast. Software, specifically tailored to cargo
for NCA who carried 203,000 tonnes As per the codeshare with NCA, Atlas operations, but has plans to upgrade.
during this period. Achieving an increase flies between Narita and OHare, but if We have plans to adopt the latest
of 122% compared to the same period for instance, there was a sudden seasonal version of iCargo and implement it
in 2016. A major contributing factor to perishable goods demand from Seattle in 2018. This new version will greatly
the tonnage growth was attributed to Tacoma International Airport (Seattle/ improve our accessibility to forwarders
the introduction of three additional long SEA) to Narita; Atlas would be able to electronic data interchange (EDI)
haul flights, specifically two to the US change the route to ORD-SEA-NRT systems, which will in turn, allow
and one to Europe, as well as three short from the typical ORD-ANC-NRT route. us to provide accurate and precise
haul flights to Hong Kong, Shanghai An option that was not available to the cargo movement information to our
and Taipei. carrier before. customers, said Watanabe.
Another key development that has
had a significant impact on NCAs
growing network and volumes are the
partnerships it has forged within the
industry. In October 2015, the carrier
started a codeshare partnership with
Cargolux Italy, to enhance main deck
services between Japan and Italy. And
more recently, NCA has entered into a
strategic partnership with Atlas Air to
boost its activities on transpacific routes.
According to Watanabe, the carrier
is very happy with what they have seen
from Atlas so far and will be interested NCA CUBO packed and ready for NCA CUBO folded, stacked and
in growing the partnership, and possibly loading ready for loading

www.payloadasia.com | September 2017 13

COV E R S TO RY
Apart from enhancing its internal
systems, NCA is doing their part to drive
change across the entire supply chain
when it comes to e-freight. Alongside key
stakeholders, the carrier is determined to
increase the International Air Transport
Association (IATA) e-AWB initiative
penetration rate in Japan. Acknowledging
that it will take time for the whole
industry to adopt the notion, NCA
executes shipments via two business
processes both paper and digital.
Despite it being twice the workload,
it ensures when the whole industry
switches over it will already be part and
parcel of daily operations for them. The
carrier believes that bringing IATAs
e-Freight concept to realization will bring
immense value not only to NCA, but also
to the whole air cargo industry.
Keeping up with and implementing
the latest technology affects the entire
supply chain and its capabilities to keep
up with customers demands. With this
ideology in place, NCA is expanding
its current pharamaceutical offerings
through a new cost-effective product.
Today, Japans pharmaceutical
industry is worth over $70 billion and
is still growing. To increase its piece of
market share in the booming industry,
NCA is in the process of launching a
new product called Cubo. This is one of
the carriers very own in-house developed
Keep Cool Equipment. It is a foldable
container, with the concept of being able
to provide less than an LD-3 container
load. Its size greatly improves space
efficiency, allowing for two layers to be
stacked and loaded together on the main
deck pallet; and for the container to be
14
folded and shipped back easily when
it is not in use. Cubo is also capable
of maintaining an inside temperature
of +5 degrees Celsius for up to 120
hours, utilizing special insulators also
in the pipeline.
We plan to start providing these
products as part of NCA Cool and NCA
Pharma-Care; in line with the product
revision of the NCA Priority Services,
from April 2018. We have listened to the
feedback from our customers, who have
occasionally told us they need less-than
LD-3 volume and have come up with a
solution that will not only solve this issue
but also provide other options to the
market. This is a very niche market, and
with the introduction of NCA CUBO,
we will be able to cater to it, and establish
ourselves as one of the key players
Watanabe added.
Cubo will also go a long way in
boosting e-commerce for the carrier,
who has already begun building
relationships with express carriers and
postal organizations who are showing
signs of needing extra capacity to handle
the ever-growing volumes. Given Cubos
size and packing flexibility, the carrier
now has more business opportunities
to exploit that will cater to numerous
e-commerce demands.
Future Outlook and trends
B a se d on the overall market
performance of 2017, analyst reports
and murmurs in the industry, Watanabe
confidently predicts that the upward
trend will continue until the end of the
year at least. As for 2018, he admits that
there is a hope that the good fortune will
spill on into the new year, especially with
the growing demand for e-commerce,
but realistically it is difficult to say. In
preparation, all we can do is closely
monitor the market, and be prepared to
act quickly in light of even the slightest
change in the market.
And with every opportunity for
growth, comes the looming possibility
of ever present challenges. Not wanting
to delve into speculations over market
challenges, Watanabe instead talks about
the challenges NCA is currently facing.
The most pressing being the additional
slot constraints in high demand markets
such as Hong Kong International Airport
and Shanghai Pudong International
Airport, due to infrastructure limitations.
To overcome this issue, NCA will be
increasing flight frequency into Taiwans
Taoyuan International Airport, especially
during the peak periods.
As it stands, there are no plans for
fleet expansion in NCAs foreseeable
future. As an alternative, the aim is for
higher utilization of the current fleet
which comprises of 13 B747F aircraft.
Watanabe reiterates the carriers plan to
increase transpacific flights by at least
20 per cent taking them from 25 weekly
flights to approximately 30 by the year
2020. We have plans to expand our
services and explore new areas, namely
in Africa, South America, Middle-East
and India. These plans can now become
a reality, under our partnership with
Atlas, he added.
It is clear to see that the Japanese
carrier has its basis covered and is going
into its 33rd year of operations ready
to realize its vision of becoming the
biggest main deck provider serving the
transpacific route.
PAYLOAD ASIA | September 2017
 Book your table now!

12 October 2017,
2017 Crowne Plaza Changi Airport
Celebrating Excellence
in the Air Cargo Industry

Customer Choice Awards & Industry Choice Awards

Overall Carrier of the Year European Airport of the Year
Rising Star Carrier of the Year Ground Handler of the Year
Combination Carrier of the Year Global Express Provider of the Year
Belly Carrier of the Year Regional Express Provider of the Year
Low Cost Carrier of the Year Global Logistics Provider of the Year
Leasing Provider of the Year Regional Logistics Provider of the Year
Charter Operator of the Year IT Provider of the Year
Charter Broker of the Year Green Award
GSA/GSSA of the Year Corporate Social Responsibility Award
Asia Pacific Airport of the Year X Factor Award

For sponsorship opportunities, please contact

Susan Ng, Associate Publisher
Tel: (65) 6521 9773
Email: susan.ng@contineomedia.com

Organiser Official Publication Supporting Publication Gold Sponsor Brand Cooperation Cocktail Sponsor Strategic Supporting Associations

Supporting Partners Supporting Associations

k .
PR OFI L E

Kuehne + Nagel sets the bar for innovation and

integrated solutions
with highly reputable airfreight carriers,
The Kuehne + Nagel group has been a leading logistics provider across the saving time and effort. Users can enter
world, providing airfreight, seafreight, contract and integrated logistics, as well as shipment requests and KN FreightNet will
overland services. With digitisation and the demand for e-commerce challenging provide recommendations of three different
the traditional practices of the air cargo supply chain, the groups constant focus airfreight products with transit-times and
on providing innovative IT based integrated solutions is upping the ante on what a range of binding quotes, including fuel
logistics providers can provide in such tumultuous times. Cheryl Soh reports. and security surcharges. Using the latest
tracking technology, the programme also
delivers premium supply chain visibility and
management solutions to help customers
improve productivity and efficiency.
The rising demand for e-commerce
has also had a significant impact on the
demand for airfreight. Consumers are
demanding goods to be available faster
and cheaper, placing more pressure on
logistics companies to deliver, contributing
to capacity issues. Small and medium-
sized enterprises (SMEs) are also
demanding quicker logistics processes
to fulfil customer expectations. Kuehne
+ Nagel aims to invest and optimise
their e-commerce offerings via KN
FreightNet and from working closely with
e-commerce leaders.

Maintaining its standing in

A
s a leading global logistics
provider, the Kuehne + Nagel
Group has a strong position in
its sector, with a clear focus on providing
IT based integrated solutions. The
groups strength in Asia and beyond lies
in its network of employees, amounting
to a workforce of over 70,000 in 1,300
locations across 100 countries. Specialists
with the right knowledge and skillsets
develop innovative end-to-end logistics
solutions, such as the KN FreightNet and
KN PharmaChain; resulting in a steady
growth in services offered.
With the strong air freight market in
Asia-Pacific during the first half of 2017,
Kuehne + Nagel anticipates a growing
demand over the peak season. So far, the
group has been fortunate enough to not
see a traditional slack season, however,
the downside is the capacity issues the
group face that arises as a direct result.
Whilst additional capacity is entering the
markets on some main lines, Kuehne +
Nagel predicts that space will remain
tight especially toward the end of Q3 and
the beginning of Q4. Periods including
Black Friday, Christmas Sale and other
e-commerce promotional periods will also
greatly impact capacity levels.
Providing an
e-commerce solution
In April this year, Kuehne + Nagel
inked a memorandum of understanding
(MoU) with Chinas Alibaba.com. The
signing will see the logistics provider
offering outbound logistics services to
shippers listed on Alibaba, expanding
its scope of services to cover various
modes of transportation (air, sea, rail,
overland) and contract logistics outside
China. This announcement follows the
launch of a pilot programme in 2016
which integrated the KN FreightNet
dig it al shipment manager w ith
Alibaba.com. Paid Alibaba members are
able to instantly quote and book point-
to-point air freight consignments via the
Alibaba One-Touch platform, including
less-than-container consignments.
The KN FreightNet is an online
solution that increases the efficiency of
placing airfreight orders.
Through an efficient exchange of
data, the programme is designed to be
straightforward, easy to use, and aims to
reduce workload and speed up airfreight
processes. Quotations can be provided
instantly by obtaining competitive prices
the pharma sector
As an integral part of its strategy in
select markets across the Asia-Pacific
region, the pharma logistics arm of
Kuehne + Nagel will introduce more
developments in countries including
Singapore, Malaysia, Japan, India, Australia
and China through the KN PharmaChain,
a fully CEIV Pharma certified specialised
supply chain innovation. Coupled with
highly trained experts, every product is
ensured to be handled and transported in
the appropriate, secure and temperature
controlled environment.
Presently, Kuehne + Nagel is investing
to upgrade its operations network of KN
PharmaChain capabilities, and to expand
its network of specialist pharma staff.
Plans are already in place to work with
pharma customers to expand and invest
in strategies that are mutually beneficial.
In China, the group has also expanded its
perishables air freight services to provide
door-to-door solutions, including custom
clearances in several locations. This opens
up opportunities for Kuehne + Nagel China
to successfully handle shipments of live
seafood, flowers and fresh food products
in a temperature controlled supply-chain.

16 PAYLOAD ASIA | August 2017

PR OFI L E
Further to that, the group will also
be expanding their industry offerings
in e-commerce, the aerospace sectors
and dangerous goods; aiming to deliver
viable solutions to meet the various
challenges and special requirements of
each industry. For stronger established
industries including high-tech and
automotive, the focus will be on
innovation, improved productivity and
to deliver customer focused solutions.
State-of-the-art
infrastructures and
facilities
Kuehne + Nagel has also been
expanding on value-creating logistics
solutions across the Asia-Pacific region
for key industry verticals such as
pharma, healthcare, perishables, and
e-commerce. In January last year,
the group op ene d it s Singap ore
Logistics Hub, a 50,000 square metre
built-to-suit facility that is located
near the city-states pharma and
healthcare hubs, key manufacturers,
and ports.
Kuehne + Nagel is expanding on value-
creating logistics solutions across the Asia-
Pacific region for key industry verticals
With 46,000 square metres of
warehousing space, the new hub serves
as a regional centre of excellence for
high-tech, industrial, pharmaceutical
and healthcare customers, offering
supply chain optimisation and value-
chain transformation solutions. The
facility also includes a Logistics Learning
Hub where the group will drive talent
development, training and succession
planning to support overall business
growth in the region.
During April last year, the group
went a step further by upgrading
its infrastructure and expanding its
integrated logistics team in the Singapore
Logistics Hub, which now boasts an
approximate 10,000 square metres of
cutting edge pharma logistics facilities.
The enhanced new hub is designed to
create an environment that fosters and
facilitates team collaboration and in turn
drive solutions.
Situated in a geographically pivotal
spot, Singapore is a very important
location for Kuehne + Nagel- and this
is clearly represented in the recent
opening of a new airfreight logistics hub
in April this year. As part of its growth
strategy, the 5,200 square metres hub
will add value to customers in the
aerospace, technology, pharma and
healthcare industries by consolidating
w a reh o u s i n g a n d a d m i n i s t r at i v e
operations; greatly supporting operational
synergies and cargo turnaround time for
customers with time-critical logistics
requirement.

Because every degree counts.

Your shipment. Your temperature. Your choice.

If you rely on the right temperature for your freight, then Cool/td
is the best solution for you. Whether warm, cold or perfectly in-
sulated, your shipment is subject to rigorous controls to ensure
it arrives in top condition every time. Enjoy quality that you can
rely on down to the very degree.

7KLVLVWKHQHZFDUJRORJLFH[LEOHVLPSOHPDGHWRRUGHU
Find out more at lufthansa-cargo.com/cooltd

www.payloadasia.com | August 2017 17

FAPAA
Federation of Asia Pacific Aircargo Associations
FAPAA hosted the associations 44th Executive Council Meeting & Annual General
Meeting in Kathmandu, Nepal from the 26th to 28th July, 2017. Payload Asia is proud
to present an outline of both meetings which were held in conjunction with the 23rd
Nepal Cargo Day hosted by NEFFA.
T
he Federation of Asia-Pacific
Aircargo Associations (FAPAA)
44th Executive Council Meeting
(ECM) hosted by the Nepal Freight
Forwarders Association (NEFFA), was
held at the Hotel Soaltee Crown Plaza,
Kathmandu, Nepal between July 26th
and 28th 2017.
The business meetings were attended
by a total of 41 persons, comprising of
21 international delegates from 13 of
the FAPAA region member economies,
as well as 18 local freight forwarding
company member representative
delegates; a representative from IATA;
and an official media representative
from Payload Asia Magazine.
Opening Ceremony
The meeting was officially opened by
Mr. Prakash Singh Karki, President of
NEFFA, who highlighted the expanding
role of freight forwarders and the
opportunities and challenges facing the
sector in the region.
The Executive Council
Meetings
The first day of the business meetings
revolved around sub-committee reports
and detailed discussions on the various
sectors of FAPAA activities:
The Federation of Asia-Pacific Aircargo Associations (FAPAA) was formed in 1985 and has grown to include 20 countries
and regional members: Australia; Bangladesh; Brunei; China; Hong Kong, SAR; India; Indonesia; Japan; South Korea; Macau,
SAR; Malaysia; Nepal; New Zealand; Pakistan; Philippines; Singapore; Sri Lanka; Taiwan (ROC); Thailand; and Vietnam.
18
FIATA activity and liaison report.
Chaired by Mr Paul Golland,
Chairman, AFIF, Australia FAPAA as
a regional federation of country / and or
region national Association members,
has a good working relationship with the
global freight forwarder representative
body FIATA. The most recent annual
FIATA World Congress was held in
Dublin Ireland, in October 2016 and the
annual Headquarters Session meetings
were held in Zurich, Switzerland in March
2017, at which many FAPAA delegates
had attended. Amongst other issues, an
emerging matter was the imminent global
introduction of the new IATA/FIATA Air
Cargo Program (IFACP) and members
were interested as to how it would impact
their own specific territory, particularly in
an administrative and operational sense.
The member from the Australian
Federation of International Forwarders
(AFIF) advised that IATA and FIATA
were both keen to introduce the
new program into Australia in early
2018, following the intended initial
introduction in Canada. However,
AFIF had made it clear to both IATA
and FIATA that it would continue
to explore ways in which the new
program could benefit its membership
in Australia, despite there being no
clear tangible benefits to date with the
planned transitioning of the current
financial review criteria at the time of
inception of the new program. The air
cargo forwarding industry, under the
leadership of AFIF, noted that whilst
such criteria would be subjected to an
independent legal review prior to full
implementation, had also obtained its
own legal advice as to issues of potential
concern in these matters. Furthermore,
AFIF advised that it had also discussed
and kept the FIATA Airfreight Institute
body of FIATA informed throughout
the process.
In general, FAPAA members agreed
to continue to work to achieve a
meaningful dialogue with FIATA on
relevant air cargo issues affecting all
parties within the sector.
IATA / CASS Forum
Chaired by Mr Brian Wu, HAFFA,
Hong Kong, China FAPAA continued
its businesslike working relationship
with IATA and Rodrigo (Rudy) Reyes,
regional manager, Airport, Passenger,
Cargo and Security (APCS), Asia Pacific,
based at IATA Singapore, was invited to
join the meeting to address a number
of ongoing and emerging matters,
including the sometimes controversial
Cargo Accounts Settlement System
(CASS), where it operated within
FAPAA member countries in the region.
Other matters discussed with IATA
were the aforementioned IFACP Program
and operational and admin issues; the
handling efficiencies of which varied
from country to country within the
region. The IATA Customer Portal also
came in for some criticism in that costs
associated with updates by members
were thought to be unreasonable.
Air-cargo security
This vital issue is a regular agenda item
and members exchanged unclassified
information on developments as to
program changes within their regions.
Australia recently had a major upgrade
to their program, as required by the US
TSA, introducing enhanced screening
technology.
PAYLOAD ASIA | September 2017
FAPAA
Training and Education
Chaired by Mr James Fang, TAFLA,
Chinese Taipei Each FAPAA member
country delivered a detailed report on
the progress and status of this vital area
within their own association. Progress
continued to be made and once again it
was clear that most countries had either
developed and were delivering, or in the
process of developing, sector specific
training and education for and on behalf
of their own membership. In the past,
those association members who had an
advanced training program had helped,
or advised, those who were planning
to introduce such training programs
and this aspect encapsulated a tangible
benefit of being a member of the FAPAA
organisation as a whole.
HAFFA, Hong Kong, China alerted
memb ers that the International
Civil Aviation Organisation (ICAO)
was planning the introduction of
a competency-based approach to
dangerous goods by Air Training.
Members were advised that the new
ICAO provisions would be incorporated
in the 2019-2020 Edition of the UN ICAO
Technical Instructions manuals, which
means they would be implemented in
DG training with effect from January
1st 2019.
Other Matters
There was discussion on other
matters, including an overview from
NEWS
23rd Nepal Cargo Day Globally Connected,
Locally Invested
N
e p a l Fr e i g h t Fo r w a r d e r s
Association (NEFFA) hosted
the 23rd Nepal Cargo Day,
on the 29th of July 2017 in Katmandu,
complete with a gala dinner and awards
ceremony. The awards, which are also
held every year by NEFFA, honour
the top three carriers for their roles in
supporting the Nepals exports and
this year the honour was awarded to
Qatar Airways Cargo, Turkish Airlines
and Cathay Pacific.
Qatar took home the award for
achieving the highest export tonnage
out of Nepal for the year 2016. This is
the ninth time that the award-winning
20
each member association on its annual
Countr y Report, detailing major
highlights affecting the industry in their
own country or region. In addition, the
council discussed potential eligible Asia
Pacific countries and / or regions who
may be interested in joining FAPAA and
the council actively engages with such
Associations to encourage them to join
the group where feasible. Publicity and
Communication remains an important
aspect of FAPAAs work and the Council
appreciated the ongoing support of
Payload Asia magazine for publishing
articles of relevance and interest to its
wide circle of subscribers in the region.
The Council also agreed to upgrade
and modernise its website, which also
provides a central link to all FAPAA
member Associations websites.
Annual General Meeting
At the AGM, Mr Niral
Kadawatharatchie of Sri Lanka Logistics
& Freight Forwarders Association
(SLFFA), was elected FAPAA Chairman
for the next two year term, whilst
outgoing Chairman Mr Alec Koh,
representing SAAA, Singapore, was
given high praise for his leadership
of the organisation through his two
year term and was formally invited to
remain on the Board of the Federation
as Immediate-Past Chairman. The
Council then elected other member
association representatives to fill
carrier has been recognised for uplifting
the highest tonnage out of Nepal,
where more than 25 international
carriers operate.
Mr. Ulrich Ogiermann, chief officer
Cargo said, Nepal is an important
market for us, and we are delighted to
receive this recognition. Qatar Airways
Cargo has always considered its role as
fundamental to facilitating international
trade to support the Nepalese economy,
while ensuring that our customers
ne e d s are at the centre of our
business goals.
Last year, Qatar Airways Cargo
transported more than 2,700 tonnes
(left) Mr Niral Kadawatharatchie of SLFFA,
the new FAPAA chairman and (right) Mr Alec
Koh of SAAA, ex-chairman FAPAA
remaining executive positions on the
FAPAA main board as follows:
Deputy Chair: AFIF, Australia;
Hon-Secretary: AFPI, Philippines;
Hon-Treasurer: BAFFA, Bangladesh
Hon-Auditor: NEFFA, Nepal
Next Meeting
It was agreed that the 45th FAPAA
Executive Council Meeting and AGM
would be held in Thailand during July
or August 2018, in either Bangkok or
Chiang Mai with the exact date and
venue details to be announced.
All delegates congratulated host
Association NEFFA who were given
deserved accolades on facilitating a
first-class event. The local organising
committee worked extremely hard to
ensure all necessary arrangements were
in place and coordinated effectively.
of cargo out of Nepal, including
items such as garments, carpets and
handicrafts.
Turkish Cargo came in as the carrier
with the second largest capacity linking
Katmandu to the world, receiving the
Cargo Excellence Award.
Pratik Sharma, from Turkish Cargo
general sales agent in Katmandu, was
presented with the certificate of high
achievement and appreciation by
Nanda Kishor Pun, the vice president
of Nepal, at the ceremony.
This years event was also graced
by Nepal government officials and
members of FAPAA.
PAYLOAD ASIA | September 2017
IT & E QUI P M EN T
BRUclouds Customs
Export App smooths
export flow at BRUcargo
On July 1 st , the Customs Export
Application went live to serve the
BRUcargo forwarders community. This
application is one of the many apps made
possible by BRUcloud. The app combines
manifest data, which has been made
available in the BRUcloud since 2016, with
newly added data from the forwarders.
The app matches the collected data at
AWB level and reports complete set of
information automatically to customs.
Forwarders who opt to connect to the
Customs Export App can drastically
improve their efficiency by avoiding having
to wait in line at the Customs offices for
the stamping of AWBs, avoiding having
to create excel list reports and having
to collect alternative evidence manually,
thus eliminating paper-based procedures
and the resulting errors. Moreover,
the customs authorities give clearance
priority to forwarders shipments handled
via the customs export App. Before this
procedure, it could sometimes take a long
time before documents were verified as
this had to be done manually. This resulted
in a lot of work and had a negative impact
on customer satisfaction.
Later in the year, the BRUcargo slot
application will be introduced, reducing
waiting times at the handlers premises.
AISATS cargo app
introduction
Air India SATS Airport Services Pvt.
Ltd. (AISATS), Indias premier airport
services company has launched a mobile
app AISATS Cargo to facilitate the cargo
tracking process at AISATS Air Freight
Terminal and at AISATS coolport, located
at Kempegowda International Airport
(KIA), Bengaluru.
AISATS is the first and only air cargo
operator at Bengaluru to develop this free
on-the-go app to provide its customers
with comprehensive cargo-tracking
solutions. This user-friendly app picks
up cargo movement data from COSYS
and provides real-time information on
flight schedules, Air Way Bill (AWB)
shipment tracking and e-Delivery Order
(e-DO) status. The user can input the
AWB number and obtain the current
status of a shipment such as date of uplift/
arrival, number of pieces, weight as well
as approval status of the delivery order
through its e-DO feature.
22
The app will increase efficiency of
the supply chain by relaying relevant
information of the cargo to key
stakeholders.
New module by CSS-UK
to speed up airfreight
handling
The new CCS-UK module aims to
accelerate air deliveries and collections
across the UK . Dubbed CCS -UK
Advanced Info, it will enable freight
agents and transport companies working
on their behalf, to pre-alert handling
agents of loads being delivered, down
to House AWB level, as well as submit
Electronic Consignment Security
Declarations (eCSD).
The emphasis will be on its simplicity
and speed: integral data stores of all users,
drivers, vehicles and transit sheds will be
used to populate new shipment entries,
avoiding the re-input of previously-used
data. In line with the IATA e-freight
concept, the module will also eliminate
a number of paper documents.
It is initially being launched for the
London Heathrow community, but will
eventually be rolled out to all airport
communities in the UK. Says CCS-UK
User Group chairman Steve Parker: As
the community trade body for virtually all
of the UK air cargo industry, we believe
we are the natural source for community
solutions that will speed up air cargo
flows in the UK, improving our air cargo
industrys efficiency and competitiveness.
CCS-UK Advanced Info is a major
step towards eliminating inefficiency
and cost in the UK air cargo industry. It
provides tangible benefits for everyone
and, as with our recently-launched
CCS-UK Fallback system, is being
provided completely free of charge to all
our members.
Concludes Parker: CCS-UK User
Group will continue to collaborate with
Customs, our partners BT, the entire
airfreight community and airport owners
to explore and implement viable measures
like CCS-UK Advanced Info and CCS-
UK Fallback, that will strengthen and
streamline the UKs airfreight industry.
Heico: dominant cargo
securement supplier to
Western Hemisphere
The Heico Companies, LLC, the
parent holding company for a diversified
portfolio of more than 37 businesses,
announced that it has completed the
acquisition of Astro Tecnologia. Astro
Tecnologia is one of Brazils leading
manufacturers of cargo securement
systems, webbing, lifting slings and
supplemental decking equipment.
The company also produces thermal
bulkhead structures that enable the
contents of refrigerated trailers to be
more accurately segregated based on
their storage temperature requirements.
Since its inception in 1998, Astro
Tecnologia has experienced significant
growth, most recently spurred by
Brazils adoption and enforcement of
strict new load securement regulations.
Headquartered in the industrial district
of Cachoeirinha, Brazil, the companys
manufacturing facility weaves polyester
webbing, produces a full complement
of standard and custom designed cargo
securement applications, web slings
and round slings, and has an in-house
quality control lab and load capacity
testing equipment.
Known in Brazil as an industry
innovator, Astro Tecnologia has also
developed highly advanced automated
manufacturing equipment that Heico will
use to bolster efficiencies throughout its
global manufacturing operations. The
companys proprietary technology also
makes short-run custom webbing and
hardware configuration more practical
and cost-effective.
Hactl achieves all-round
improvement with VR
training
Hong Kong Air Cargo Terminals
Limited (Hactl) Hong Kongs largest
independent cargo handler has
introduced a revolutionary Virtual Reality
(VR) training environment that will enable
new staff to gain valuable experience
before working in the challenging
ramp environment.
Unlike existing training systems,
Hactls COSAC-VR provides users
with an interactive, fully immersive,
360 degree, 4-dimensional experience.
The first phase covers aircraft cargo
compartment operations, and other areas
of Hactl operations will be included in
future modules. COSAC-VR overcomes
the limitations of on-the-job-training in
preparing new staff for working in ramp
handling: the fast pace of work, and the
restricted opportunity to practice on real
PAYLOAD ASIA | September 2017
IT & E QU I P M EN T
COSAC VR
aircraft and ramp equipment. The system
is not dependent on a high-technology,
fixed-location training suite; it is fully
portable, and can be quickly set up in
any location.
Hactl expects COSAC-VR to speed
up the learning process, enable trainees
to experience a wider variety of scenarios
such as handling odd-sized cargo
EX P RE SS & M A IL
AMI boosts express
imports with online quotes
AMI, UKs recently-launched, trade-
only online express imports service has
already boosted traffic by 10% in its first
three months, and is speeding up quotes
and saving customers hours of research.
click2ship Express Imports aims to
make handling imports less labour-
intensive and more profitable for couriers
and freight agents, by enabling customers
to obtain an online quote for any express
import shipment. The easy-to-use all
inclusive pricing tool includes freight
charges, collection at origin, delivery at
destination and all Customs processing.
The new service takes the place of
telephone enquiries - producing accurate,
instant quotes that couriers and agents
can use to provide instant prices for
their own customers based on prime
integrator suppliers.
A click2ship Express Imports quote is
easily converted to a booking; the system
then generates all the paperwork, which
AMIs agent customer can forward to
his customer and their overseas supplier.
Regular updates, notifications and tracking
www.payloadasia.com | September 2017
pallets and special loads, and enhance
safety awareness.
Lufthansa Cargo sets
up Test Factory with IBS
Software
IBS Software, leading IT solutions
provider to the global aviation industry,
information are all available online and,
if the collection and delivery points are
confirmed prior to booking, an accurate
transit time can also be confirmed. While
click2ship Express Imports is intended to
provide an all-inclusive service, agents can
still opt to perform some functions, such
as customs clearance themselves.
click2ship Express Imports is aimed
primarily at smaller and lighter shipments,
but can also prove attractive for larger
consignments. The only commodities it
cannot accept are lithium batteries and
other dangerous goods.
AMIs new click2ship Express Imports
service is global, and is the latest online
offering from the company, which now
transacts over 40% of its global business
through its web portals.
DHL Group records
strong growth in Q2
Deutsche Post DHL Group, the worlds
leading mail and logistics company,
increased revenue and operating profit
significantly in the second quarter of
2017. Group revenue increased by EUR
623 million to EUR 14.8 billion, with
has set up a Test Factory for Lufthansa
Cargo to ensure that all its application
software are fit for purpose and meet the
highest quality standards that Lufthansa
Cargo sets for itself.
Lufthansa Cargo, a world leader in
the air cargo industry, is known for its
highly efficient processes, reliability and
service excellence. With this Test Factory,
Lufthansa Cargo will derive benefits from
IBS air cargo domain knowledge and
vast experience of building, testing and
implementing mission critical systems
for a large number of airlines and travel
companies around the world.
IBS is a strategic IT partner for
Lufthansa Cargo. Under this engagement
IBS is responsible for managing
end-to-end testing of all applications
under the core IT platform, enabling
a smooth rollout of product upgrades,
new services and innovations. The Test
Factory also uses IBS enabling assets of
testing frameworks, proven
processes and effective tools to
provide cost and quality advantage
to Lufthansa Cargo. It also ensures
that the testing services are delivered
in a scalable, flexible and cost-effective
manner.
the international parcel and eCommerce
business and the global Express
business in particular, driving the
growth. With EBIT of EUR 841 million,
Deutsche Post DHL Group recorded the
strongest second quarter in its history,
and the seventh consecutive quarter in
which the company has posted an all-time
quarterly high.
Group revenue grew by 4.4% to EUR
14.8 billion in the second quarter. The
companys operating profit increased
by 11.8% to EUR 841 million. The
improvement in the groups profitability
was driven largely by the Express (+12.2%)
and Supply Chain (+21.6%) divisions, both
of which achieved significant double-digit
growth in operating profit.
Cons olidate d ne t prof it af ter
non-controlling interests increased by
11.3% to EUR 602 million against the
prior-year level (2016: EUR 541 million)
thanks to the increase in operating
profit. Basic earnings per share saw a
corresponding increase, rising from EUR
0.45 in 2016 to EUR 0.50 in 2017.
Following the successful first six
months, the group continues to forecast
an increase in EBIT to around EUR 3.75
23
E X P RE S S & M A I L
billion for full-year 2017. Deutsche Post
DHL Group is also maintaining its forecast
of an average increase in operating profit
of more than 8% annually (CAGR) during
the period from 2013 to 2020.
HK Express posts rapid
growth and bans Ivory in
cargo
Hong Kongs low-fare airline HK
Express reported another month of
strong business performance. In July, the
airline further demonstrated exceptional
operational efficiency with notable
increases in passenger numbers, ancillary
revenue and Load Factor.
HK Express has seen an impressive
uptick in Load Factor, an industry
indicator of operational efficiency. Thanks
to the summer travel peak season, the low-
fare airlines Load Factor surged to 92%
in July, and 90% in the 12 months prior.
As expected, ancillary revenue continued
to soar last month, expanding to 23.2% of
total revenue in July and 24.6% of total
revenue over the past year.
To marking World Elephant Day in
August, HK Express announced its new
policy to ban ivory cargo and was the
first airline in Hong Kong to do so. The
decision to take an ethical stance on the
issue follows the Hong Kong governments
recent proposed legislation to ban all local
ivory trade by 2021.
Last year, HK Express was the first
Hong Kongs based airline to ban shark
fin cargo. In collaboration with the Hong
Kong Shark Foundation (HKSF), HK
Express raised awareness for the plight
of sharks by naming its first A320neo
aircraft Shark Say No to Shark Fin,
and supporting the HKSFs campaign to
ban the cruel practice entirely.
24
The ivory ban takes the airlines
conservation pursuits one step further, in
an effort to protect vulnerable elephant
populations around the world. The ban
also reinforces the airlines corporate
social responsibility and continued
commitment to the environment and
its wildlife.
Blue Dart Q2 sales at
Rs 667 crores
Blue Dart Express Limited, South
Asias premier express air and integrated
transportation, distribution and logistics
Company, declared its financial results
for the quarter ended June 30, 2017, at
its Board Meeting held in Mumbai. The
company posted Rs. 21 crores profit after
tax for the quarter ended June 30, 2017.
Revenue from operations for the quarter
stood at Rs. 667 crores.
Anil Khanna, managing director,
Blue Dart said, As leaders in the express
logistics industry and trade facilitators
for the country, we will continue to
delight our customers through high
service quality, best-in-class technological
innovations, products and services and
steer successfully against the strong
headwinds our economy and business
face. We remain committed and will
continue to have a strategic thrust
towards maintaining market leadership
in all segments and sustain our leadership
position with renewed passion, focus
and commitment.
Australia Post delivers
strong profit of $126.1m
Au s t r a l i a Po s t a n n o u n c e d a
full-year profit before tax of $126.1
million, up from $41 million
(or 307%) in FY16, as continued strong
growth in the parcels business allowed
for reinvestment in customer service
initiatives.
Parcels profit before tax increased by
4.8% to $299.7 million, a strong result in
a very competitive market. Addressed
letter volumes, down 11.8%, contributed
to a $180 million loss before tax in the
postal business.
Australia Post acting managing director
and group CEO Christine Corbett said
this result demonstrated the shift to
becoming a major eCommerce player is
paying dividends.
Australia Post has advised strong
parcels growth is expected to continue
however the structural decline in letters
will put pressure on the profit outlook
for FY18.
New Zealand Post to
purchase five electric vans
New Zealand Post has announced
that it will purchase five electric vans
to assess their suitability for use in the
courier fleet.
The new vehicles will allow courier
drivers to see for themselves what it is
like to drive an electric van, so that they
can consider purchasing or leasing their
own. The vans will be used at depots and
delivery branches at different locations
around the country. The post will purchase
the vans with assistance from the New
Zealand governments Energy Efficiency
and Conservation Authority (EECA) Low
Emission Vehicles Contestable Fund.
Sam Bridgman, sustainability specialist,
New Zealand Post, said, We would like
to thank the EECA in helping us with
this funding. In addition to our other low
carbon initiatives, these vehicles will help
us develop new ways to reduce the carbon
footprint of the mail we deliver.
New Zealand Post has more than
1,000 vans in operation and already has
the largest roadworthy electric vehicle
fleet in the country with the electric
Paxster delivery vehicles.
PAYLOAD ASIA | September 2017
 Register your ticket online now
conference.payloadasia.com/register
CONFERENCE 2017
11 & 12 October 2017, Crowne Plaza Changi Airport

Sustaining growth in What can be done to sustain the current

the air cargo industry upward trajectory in the air cargo industry?

Drones, the future

Are drones inevitably the future of air freight
of airfreight?

Digitization The importance of digitisation in the supply chain network

Achieving operational excellence in Cargo Ground Handling

every area of air cargo ground handling and Dangerous Goods

Tomorrows
The evolution of the air cargo terminal and ways of future proofing
Cargo Terminal

Big data
How can big data analytics be used to drive profits
analytics

Topics are subject to change at the discretion of the Organiser.

For more information on the conference topics, For sponsorship opportunities,

please contact please contact
Lebo J. Farrell, Journalist Susan Ng, Associate Publisher
Tel: (65) 6521 9784 Tel: (65) 6521 9773
Email: lebo@contineomedia.com Email: susan.ng@contineomedia.com

Organiser Official Publication Supporting Publication Tripartite Host Sponsors Gold Sponsor Strategic Partner Sponsor

Panel Sponsor Lunch Sponsor Coffee/Tea Break Sponsor Strategic Supporting Associations Supporting Partners

Supporting Associations

.
LO GI STI C S
Tigers gear up for
Brexit growing global
footprint
Tigers Global Logistics Limited has
opened a new office in Leeds, UK and
has been certified as an Authorised
Economic Operator (AEO) in the United
Kingdom (UK).
Customers of the supply chain
specialist will benefit from a lower rate
of compliance inspections, a reduction
in the number of Customs control
checks, and simplified documentation
for imports and exports, thanks to the
AEO certification.
Global brands entering the European
market will be able to take advantage of
both Tigers growing global footprint,
and its Smart-Hub Connect web portal,
offering a virtual warehouse as part of
Tigers e-commerce suite of products.
Tigers post-Brexit solution creates
a virtual single logistics facility, giving
customers a one-stop-shop to combat
any disruption caused by Brexit by
physically placing products across the
UK and European Union (EU), whilst
offering full visibility, inventory control,
a single IT integration, a single tariff,
and one currency billing.
The new office in Leeds, the groups
seventh to open in the UK, brings the
total number of Tigers offices in Europe
to 13 including offices in Germany,
Switzerland and the Netherlands.
Panalpina offers hassle-
free carrier solution
International freight forwarding
and logistics company Panalpina has
launched Panprojects Carrier. With
this new carrier model, Panalpina can
oversee multimodal heavy-lift moves
from fabrication to installation sites
under one single contract that clearly
governs all modes of transport. For
customers like EPC (Engineering,
Procu rement a nd Con st r uc t ion)
companies and oil and gas majors, this
offering with its unique legal framework
reduces to an absolute minimum the
commercial, technical and contractual
risks that are inherent to the multimodal
transport of project cargo.
The single contract under which
Pana lpina of fers its mu ltimoda l
solutions is consistent with the released
transportation documents such as bill
of lading and the general terms and
conditions. This greatly helps to avoid
26
problems and disputes when exceptions
occur during transport, especially when
the transport mode changes. The new
purpose-designed legal framework
therefore ensures the best possible
contractual clarity and one point of
contact for the customer.
Panprojects Carrier works closely
with all leading multipurpose and
heavy-lift carriers of the world. It has
access to over 2,300 specialized vessels
in the market. The most suitable carrier
and vessel for each move is selected by
Panalpinas Energy and Project Solutions
experts. The companys stringent
subcontractor management system
additionally covers all companies and
equipment that are employed for pre-
and on-carriage of project cargo by road
or rail. Furthermore, the companys
transport engineers make sure that any
technical issues are prevented.
Shanghai Pharma and
DHL join forces
Shanghai Pharma, one of Chinas
largest listed pharmaceuticals groups, has
signed a Memorandum of Understanding
(MOU) with DHL Supply Chain, to
prepare its logistics infrastructure for
rapid global expansion.
Under the MOU, the pharmaceuticals
giant which generated revenues of
almost RMB121 billion last year will
partner with DHL Supply Chain to
enhance quality control measures,
streamline distribution processes, and
strengthen compliance with local and
international food and pharmaceutical
regulations. A range of recent government
initiatives, including the two- invoice
or fapiao policy which was rolled out
earlier this year, have put greater onus
on Chinas pharmaceutical sector to
improve the transparency and efficiency
of local supply chains.
To facilitate this planned expansion,
the MOU will grant Shanghai Pharma
priority access to DHLs global logistics
net work i nclud i ng temperat u re-
sensitive life sciences services to
Europe. DHL Supply Chain will also
support Shanghai Pharmas supply
chain optimization needs as the
manufacturer ramps up its overseas
distribution and retailing efforts.
Kerry Logistics
manages Maxims DC
Kerry Logistics Network Limited
has secured a long-term contract
with Maxims Caterers Ltd, Hong
Kongs leading food and beverage
company. Kerry Logistics will provide
integrated logistics services to Maxims
Group, including cold chain solutions,
supporting the caterers more than 780
outlets in Hong Kong and key accounts,
365 days per year. This strategic
cooperation signals the collaboration
of two industry leaders in Hong Kong,
and exists to serve the Hong Kong
community with a speedy and hygienic
food supply.
The new strategic cooperation will
see Kerry Logistics managing Maxims
new Central Distribution Centre
(DC) with multi-temperature storage,
accommodating Maxims extensive
product range. Kerry Logistics will
also provide a wide range of value-
added services and daily replenishment
to Maxims restaurant chains and
key accounts.
CEVA enhances
Dublin facility
CEVA Logistics, one of the worlds
largest supply chain management
companies has enhanced its capabilities
in Dublin with the introduction of
a 15,000 square foot temperature-
control led faci lit y at its Dublin
warehouse. The new building has been
constructed as an insulated building-
within-a-building, on the citys airport
industrial park and will allow it to better
serve customers with medical products
requiring to be kept within a constant
temperature range of 15-25 degrees.
The new Dublin unit also features
state-of-the-art air conditioning, heating
and cooling technology complete
with a Sintra system which provides
exceptional levels of clean air by using
perforated ducts to diffuse the air
PAYLOAD ASIA | September 2017
LO GI STI C S
within the facility. Having specialist
clean room facilities, CEVA can also
offer customers additional value-
added services including re-kitting
and reassembling in a controlled
environment.
The transformed facility enables
CEVA to provide customers with a 24/7
service for any goods moving through
the unit as it is now fully authorized
under the HPRA (Health Products
Regulatory Authority) Wholesalers
Distribution Authorization scheme.
The next stage of the facilitys
development, which now caters to
multiple healthcare customers, will be
the introduction of on-site pharmacists
which will commence by the end
of 2017.
Airinmar signs with
Ameriflight
Airinmar, a global leader providing
intelligent component repair cycle
management solutions, has signed a
three-year agreement with Ameriflight
LLC, a leading cargo feeder airline based
in Dallas, Texas, to fortify its supply
www.payloadasia.com | September 2017
chain infrastructure and maximize
performance, including repair cycle
m a n agement a nd s ou rc i ng a nd
systems support.
Swissport Cargos state-
of-the-art warehouse
A grand opening event of the new
state-of-the-art facility was held at the
North Cargo Area of Chicago OHare
Airport. The ceremony was attended
by airlines, the local forwarding
community, OHare Airport and city
officials, along with Swissport USAs
management team and local employees.
With a special focus on safety and
efficiency, the 138,000-square foot
facility was designed by a team of
Swissport Cargo experts to address
customer needs and aimed to continue
developing Swissport into the best cargo
and ground handler in the industry.
The automated material handling
system makes it first of its kind in the
region and can accommodate over 120
10-ft units (unit load devices) at a time
using pallet platforms and electric ULD
movers. All ULDs can be handled to
the highest industry standards without
touching the floor. The warehouse
operates with two cold storages: 2-8
degrees Celsius and 18-25 degrees
Celsius. Both have been designed to
meet the IATA CEIV requirements. The
facility also has 35 truck docks able to
handle the peak seasons and features
adjacent aircraft parking with in-ground
fuelling and power units to reduce
overall handling time of the aircraft on
the ground. In addition, the material
handling system is integrated with the
back ramp where ULDs are directly
stored into the system or delivered
to the customer. These specifications
allow Swissport to handle fully-built
units from the aircraft to the truck in
a considerably short time.
27
 AMERICAS SUPPLEMENT
AMERICAS
SUPPLEMENT
Cautious Optimism for Transpacific Air Cargo
By Karen E. Thuermer
T
heres some cautious optimism
about transpacific air cargo
demand.
Tom Crabtree, spokesman for
Boeing, points to new aircraft orders.
A big one: UPSs 14 747-8 freighter
order in October with options for 14
additional aircraft. While there is no
indication whether or not these aircraft,
scheduled for delivery between 2017
and 2020, will be flown on transpacific
routes, that market does represents
the worlds largest for freight ton
kilometers (FTKs).
Another positive, says Crabtree,
is the quickly dwindling number of
parked 747s. If healthy growth is
sustained, we are confident there will be
more freighter orders in 2017, he says.
The International Air Transport
Associations (IATA) data for global air
freight markets show global demand
grew by 10.4% in first-half 2017
compared to first-half 2016 the
strongest first half-year performance
since air cargos rebound from the
Global Financial Crisis in 2010. The
data is nearly triple the industrys
average growth rate of 3.9% over the
last five years. IATA also reported that
year-on-year (YOY) demand growth in
June increased 11% compared to June
28
Jim Bellinder, VP Cargo Sales Americas
2016. Freight capacity grew 5.2% YOY
in June.
Until this past year, the air cargo
industry has had fits and starts,
comments Crabtree. Because of the
historic weakness over the last few
decades beginning with the economic
downturn in 2008-2009, however, a lot
of airlines still are reluctant to purchase
aircraft.
After what IATA has called the
strongest first half-year performance
for air cargo since 2010, we are
fairly optimistic this momentum
will carry through to the holiday
season, comments United Cargos
Jim Bellinder, vice president, Cargo
Sales Americas. Most indicators are
similarly encouraging but, given the
rise in global political tensions and
certain trends in currency fluctuations,
were not counting our chickens
regarding the peak.
Vita Cerone, senior director of sales,
commercial strategy, Air Canada, says:
Cargo volumes are up globally. Given
our own increased volumes, were
anticipating a robust fourth quarter.
Eric Anderson, director for Asia-
Pacific sales at Delta Cargo, sees over
capacity as among one of the biggest
factors impacting air cargo on the trade
lane . The biggest impact to air cargo
from North America to Asia is industry
over-capacity relative to demand exit
the USA and the strong US dollar, he
says. This is contributing to an overall
increase in imports, but is negatively
impacting exports levels.
He attributes the over capacity to
the large number of widebody aircraft
deliveries that have been introduced
into service in recent years. These large
belly aircraft are capable of carrying 25
tons or more of freight depending on
the destination, he says.
A secondar y contributor to
impacting air cargo is the US dollar.
Currently the dollar is strong, making
PAYLOAD ASIA | September 2017

US-produced goods more expensive
overseas leading to less exports and
hence, less air cargo, he says.
Finally a tertiary explanation is
the nature of the US economy itself.
The U.S. economy is no longer a
manufacturing-based market economy,
but a predominantly service industry-
based market economy, Anderson
stresses. The rise of various service
industries from food delivery services
to ride share services like Uber or Lyft
to IT companies have replaced much of
the traditional manufacturing industry,
and the US is now more reliant than
ever on importing various commodities
it used to produce itself.
Still, most air carrier executives
are optimistic.
Air Canada is seeing increased
demand for perishables like lobster
and salmon from Atlantic Canada and
fresh produce from the United States,
South America and Canada. Cherries
and cranberries are some examples,
says Cerone.
Bellinder notes, however, that even
with Uniteds long history in Asia and
its extensive personal experience with
importing to this region, it is still
sometimes a struggle to navigate the
nuances of policies and regulations in
each country and airport.
We continue to collaborate with
industr y a sso ciates to p ersuade
governments and regulators to mitigate
the issues that restrict air cargos growth
and impact the value proposition we
AeroNexus: The Alaska Advantage
Global Cargo Hub to Key Trade Lanes
Asia-North America cargo gateway
Transshipment for multiple markets
Unique, exible air cargo transfer regulations
Foreign Trade Zones and logistics services
Worlds 6th busiest cargo airport
www.payloadasia.com | September 2017
AMERICAS SUPPLEMENT
offer to worldwide customers around
the world, Bellinder says.
Also, since our capacity is fi xed
limited to the belly space on Uniteds
passenger aircraft its crucial that the
dimensions and weight of shipments
tendered to us closely match what was
booked, he adds. This is particularly
important on routes where demand
for space is high. We rely on the
cooperation of our long-term strategic
partners in this area to enable us
to keep our commitment to move
shipments as booked.
Keijio Ishii, regional managing
director Cargo Sales Asia, American
Airlines (AA), reports that new aircraft
on its Asia routes has made a positive
difference. They enable us to provide
consistently reliable payloads to and
from the region, he says. This is
especially important in our efforts
to boost our temperature-controlled
products as we work toward becoming
CEIV certified.
From Hong Kong (HKG), AAs
Dallas/Fort Worth (DFW) connection
is popular with our customers with
onward service to markets like Sao
Paulo, Buenos Aires, Santiago and
Mexico City being the primary end
destinations, Ishii says.
AA recently added Sydney (SYD)
and Auckland (AKL) to its network,
with more new options to come. In
2016, AA launched service to Haneda
(HND), Auckland (AKL) and HKG
from Los Angeles (LAX). LAX is a
w w w.AnchorageAirpor t.com
www.AnchorageAirport.com
Eric Anderson, Director of Cargo Sales,
Asia-Pacific
very important gateway for us, Ishii
says. It opens other markets to our
customers with onward connections
to more than 70 destinations.
American takes a seasonal hiatus
on some routes, such as that between
AKL and LAX. But we will be back on
the route in early October with B787-
9 aircraft that will provide additional
cargo capacity and let us continue
moving large shipments, such as the
specialist Manuka honey we moved in
early 2017, Ishii reveals.
Ishii reports that the Korean
market is performing steadily in
both directions, while in Japan, the
increasing volumes of transit shipments
from other Asian countries and the
current relative weakness of the
Japanese yen is accelerating the upward
trend on exports.
Inbound from the US, we are
at the peak of cherry season, and it
looks like 2017 will be a record year
as Asian demand continues to grow,
Ishii continues. Weve already seen
29
AMERICAS SUPPLEMENT
an increase in demand from locations
like Peru. The same can be said for fruit
from South America, like mangoes and
limes.
The global airfreight market is
consistently challenging. But there are
always bright spots, Ishil adds. The
more global markets you serve, the less
you are exposed to any issues affecting
one particular route. I would say traffic
from North America to Asia is one of
those bright spots.
Delta Cargos volumes YTD are up
10% through July. Customers have
been telling us of stronger demand for
air cargo on the part of the shippers
and we certainly see that in our
own volumes at an entity level, says
Anderson.
On June 3, Delta launched new
daily nonstop service between ICN
and Atlanta (ATL) in anticipation of
its new joint venture with Korean Air,
which was announced on June 23. This
will provide our customers with greater
access to over 80 destinations in Asia,
says Anderson.
The service is served by a B777-
200LR. A large number of Korean
manufacturers are located throughout
the US states of Georgia and Alabama
and combined with our extensive US
trucking network, we can reach the
entirety of the southern US utilizing
overnight trucking for a next-day
delivery, Anderson emphasizes.
Later this year Delta will launch the
first of its new A350 aircraft that will
operate on its transpacific routes. The
first, to commence in October, will be
on the Detroit (DTW) Tokyo-Narita
(NRT) route. We will take delivery of
four additional A350 aircraft in 2017,
he reveals.
Delta is focusing on differentiated
products and services offerings, and
was recently awarded IATAs CEIV
Pharma certification at the headquarter
level.
United Cargos volumes were up
20.5% through July over the same
period in 2016. Key reasons, says Jim
Bellinder, vice president Cargo Sales
Americas, United Cargo, is the close
bi-lateral partnerships the carrier built
with leading forwarders throughout
years of slow growth, and Uniteds
leading position for transpacific service.
Another reason is Uniteds
position as the leading US carrier to
30
Ted Stevens Anchorage International Airport
and from China and the Asia Pacific,
he adds. United Cargos steady growth
in volume and market share since
2014 corresponds to the success of
our efforts to deliver higher quality
and more consistent results at all our
stations worldwide.
Unite d C argo is empha si z ing
i t s Te m p C o n t r o l s e r v i c e f o r
pharmaceuticals, healthcare material
and other temperature-sensitive
commodities. Chengdu, China is the
most recent addition to the carriers
list of 68 certified handling locations.
Others include Beijing, Hong Kong
and Shanghai.
An example of what this development
can mean is the recent collaboration
between United Cargo and DHL to
transport a new treatment for hepatitis
C from the US to China. China recently
approved a US drug manufacturers
all-oral treatment for hepatitis C
the first therapy of its kind to treat
the liver disease to be sold in China.
TempControls role in its transport
promotes access to this treatment
for the estimated 10 million Chinese
infected with hepatitis C, Bellinder
says.
Regarding new service, on October
27, United will launch daily nonstop
flights between LAX and Singapore
(SIN), which will set a new distance
record for any airline operating a
flight to or from the United States. In
May, it re-launched seasonal service
between SFO and Xian (XIY), the first
transpacific flight to XIY operated by
any airline.
United was the first US airline to
serve XIY, Bellinder adds. SFO-XIY is
served by 787-800 aircraft.
This summer Air Canada launched
new direct service to Taipei and Nagoya,
and increased service to Shanghai with
a new route from Montreal earlier in
February (in addition to the existing
Toronto-Shanghai and Vancouver-
Shanghai routes). In total we operate
over 100 flights per week to Asia, says
Cerone. These are operated with either
B777, 767 or 787 aircraft, depending
on the route, which provide us with
significant cargo capacity.
Airport View
Miami International Airport (MIA)
is served by four Asian carriers: Korean
Air, Asiana, Cathay Pacific, and China
Airlines. For the most part, Asian cargo
services are carried out on B747F with
some B777F service, comments Chris
Mangos, director, Marketing Division,
Miami-Dade Aviation Department.
Last year, the total volume from these
carriers was 92,328 tons slightly below
2015s total. Collectively from January
June 2017, Asian carrier volumes
were up 10.3% over the same period
last year, he says.
Mangos expects peak season this
year to be very strong due to increasing
imports and exports -- the new iphone
8 in particular.
MIA recently completed the planning
phase for its Cargo Optimization,
Redevelopment and Expansion Program
(CORE), a comprehensive, long-term
plan to modernize the airports cargo
PAYLOAD ASIA | September 2017
 AMERICAS SUPPLEMENT

operations. CORE will double its
current capacity.
Anchorage International Airport
(ANC) ranks No. 2 behind Memphis
(MEM) for total cargo because it
operates as a tech-stop for aircraft
flying transpacific routes. ANC handled
nearly 1.070 MT for the first six months
2017, up 5.1% per the previous period.
For CY 2016, it handled 2.550 MT. Trudy
Wassel, ANC Division Operations
Manager, says ANC anticipates a good
peak season. This will begin next
month and go through about January
to the Chinese New Year, she says.
ANC operates three runways that
have never been closed, and has parking
for 60+ wide body aircraft. A big
advantage, Anchorage is located 9.5
hours from 90% of the industrialized
world.
Through 2016, total cargo at LAX
was about 2.2 million tons. In June
2017, year-to-date, LAXs total cargo
was 1,149,781 tons, a 10.35% increase
over June 2016.
Relative to other ports, LAXs
demand for international cargo is
less sensitive to seasonality, reports
Frederick Badlissi, Los Angeles World
Airports spokesman. LAX has been
a major gateway to the Pacific for at
least 50 years and, according to freight
forwarders, has enough daily scheduled
capacity by both passenger and all-
cargo carriers to accommodate all
exports from the western US.
LAX is poised to release a Request
for Qualifications that may lead to
a Century Boulevard cargo corridor
redevelopment and construction of
new state-of-the-art cargo facilities,
over the next several years. In addition,
LAX is investing more than $14 billion
in airport improvements.
I n 2 0 1 6 , D a l l a s Fo r t Wo r t h
International (DFW) handled more
than 829,800 US tons of air freight, an
increase of 12.8% from the previous
year. As of July 2017, the airport handled
more than 435,900 US tons of cargo, an
YTD increase of 12% that puts DFW on
track to surpass cargo volumes of 2016.
Currently, 10 freight carriers serve
Asia from DFW (Korean Air Cargo,
Cathay Pacific, Asiana Cargo, EVA
Air Cargo, Air China Cargo, China
Airlines Cargo, Nippon Cargo Airways,
Singapore Airlines Cargo, Qantas
Freight, and Cargolux Italia.) Most
of cargo aircraft is B747-4 and 747-8
freighters.
Nippon Cargo Airways (NCA) has
added one additional frequency per
week and has rerouted their DFW
service so that DFW is now their first
US entry point, reports Milton De
La Paz, DFW vice president airline
relations.
DFW has non-stop service to more
than 200 domestic and international
destinations, including Seoul, Tokyo,
Shanghai, Beijing, and Hong Kong.
This belly capacity provides an
attractive alternative for smaller, more
time sensitive products, he says.
Contributing to cargo volumes
is Amazon, which is expanding
its distribution center at DFW to
446,000 square meters by end of 2018.
A 3,400-square-meter cold chain
facility will open in 3rd quarter. The
3,400-square-meter facility will be
operated by Dubai-based Dnata.

PROUDLY CELEBRATING
80 YEARS OF
EXCELLENCE
A YEAR TO CELEBRATE
This year marks the 150th anniversary of Canada and Air Canadas 80th birthday.
On this landmark occasion, we would like to thank you, our customers and
partners, for your continued support. As we look forward to the future, we at
Air Canada Cargo continue to aim higher, striving to deliver the services you
need with utmost expertise and care, with a truly Canadian spirit.

We invite you to experience todays Air Canada Cargo.

www.payloadasia.com | September 2017 31

AMERICAS SUPPLEMENT
Milton De La Paz, VP Airline Relations, DFW
At Houston International Airport
(IAH), January-May 2017 already shows
a 25.7% growth YOY, with 22,547,315
kilograms of air cargo moved to/from
Asia. Imports show a fantastic growth
of 33.46% YOY, and exports have grown
by 17.18% YOY, reports
Luis G. Avils, senior executive Air
Service Development, Houston Airport
System (HAS).
IAH benefits as a hub for imports/
exports of energy equipment, and
manufactured goods. Its Cargo Center
is capable of parking 20 widebody
freighters simultaneously. Currently,
HAS officials are working with IATA
for CEIV Pharma Certification for
AirLogistixUSA, which operates an
2nd phase of Northeast
Cargo development
opens at OHare
The second phase of the $220
million Northeast Cargo development
was unveiled at OHare International
Airport (OHare) recently in August. The
opening was attended by Mayor Rahm
Emanuel, the Chicago Department of
Aviation (CDA), Aeroterm and cargo
executives.
The new cargo facility opened ahead
of schedule in direct response to the
strong demand for moving air cargo
through Chicago to markets around
the world. In just under a year, the
partial completion of the northeast
cargo development has already created
approximately 600 permanent jobs,
outpacing earlier projections that it
would create 1,200 jobs when the
project is completed.
Wi th O H a re s n e w e s t c a rg o
development on track and ahead of
schedule, air cargo volume is already
up by 15 percent over last year, putting
Chicago on pace to handle 1.8 million
32
on-airport perishables facility next to
the ramp.
This is very relevant to us since we
have in Houston the Texas Medical
Center, the largest medical center in the
world, Avils says.
Rickenbacker International Airport
(LCK) in Columbus, Ohio, has seen
a YTD 21% increase in total cargo. In
June, imports were up 26% and exports
were up 143% compared to the year
prior, reports David Whitaker, Chief
Commercial Officer, Columbus Regional
Airport Authority.
Freight forwarders contribute largely
to LCKs air cargo volumes to/from
Asia. Nearly 10 million square feet
of warehouse/ distribution space was
constructed last year.
In June 2016, LCK opened its Air
Cargo Terminal #5. Since then, LCK
has moved over 101 million pounds of
international air cargo. Contributing
to the airports success, in October
2016, Etihad Cargo commenced weekly
scheduled service with partner Trinity
Logistics. In May, Etihad added two
weekly scheduled flights.
These flights originate in Colombo,
Sri Lanka and transit over Europe en-
route to LCK, reports Whittaker.
tonnes in 2017. This marks another
record year for cargo at OHare-one
of the nations premier cargo airports.
The Northeast Cargo development
expands and enhances the efficiency
of the airports cargo operations at no
cost to Chicago taxpayers, funded by a
$160 million investment by Aeroterm
and more than $62 million of airport
funds. The 240,000-square-foot Phase
II building is home to Burak, Cargolux
and Swissport tenant operators. When
complete, it will be the largest airside
cargo development built in the last
decade at a U.S. international gateway
airport.
Boeing reports strong Q2
results and elects board
member
The Boeing Company (Boeing)
reported strong results for the second-
quarter, with a rise in Earnings Per
Share (EPS) and operating cash flow
that is driven by improved operating
performance. Second quarter GAAP
EPS increased to $2.89 and core earnings
Emirates SkyCargo also added an
additional frequency in 2Q 2016 for
three weekly scheduled frequencies
to LCK.
Cargolux is operating three weekly
frequencies out of HKG and saw
a 54% increase in June 2017 when
compared to last year and have been
consistently completing full turns out
of LCK meaning they head straight
to Europe with LCK being their only
US stop other than fuel in ANC,
Whittaker says.
Key freight forwarders are primary
factors contributing the LCKs air cargo
volumes to/from Asia. They have
started moving significant volumes of
their import and exports through LCK,
using all carriers given the worldwide
lift we now enjoy, Whittaker says.
A major contributing factor: nearly
10 million square feet of new warehouse
and distribution space constructed in
the last year.
Recently, Navitrans started using
LC K , exe cuting char ters out of
Shanghai (PVG). LCK also has a
cooperative agreement with and a
strategic interest in Zhengzhou (CGO)
as well as very strong interest in
Japan service.
per share (non-GAAP) increased to
$2.55. Revenue was $22.7 billion,
reflecting planned production rates
and timing of commercial and defense
aircraft deliveries. Backlog also grew to
$482 billion, including $27 billion of net
orders during the quarter.
For the full year, GAAP EPS guidance
increased to between $11.10 and
$11.30 from $10.35 and $10.55 and
core earnings per share (non-GAAP)
guidance increased to between $9.80 and
$10.00 from $9.20 and $9.40, primarily
driven by improved performance across
the company and a lower-than-expected
tax rate. Operating cash flow guidance
had increased by $1.5 billion to $12.25
billion on solid execution and a cash
tax benefit from accelerating pension
funding in the third quarter of 2017.
Additionally, capital expenditures
guidance decreased by $300 million to
$2.0 billion.
Our robust cash flow enabled us
to return more value to shareholders,
invest in future growth and in our
people, including a plan to accelerate
pension funding that also reduces
PAYLOAD ASIA | September 2017
AMERICAS SUPPLEMENT
risk and cyclicality in our business,
said Chairman, President and Chief
Executive Officer, Dennis Muilenburg.
As we look to the second half of
the year, our teams are focused on
accelerating productivity, quality
and safety improvements across
the company, while completing key
development efforts and delivering
better capabilities and economics to
our customers.
In August, Boeing announced that
Caroline B. Kennedy has been elected
as a new member in the Boeing
board of directors. Serving as a US
Ambassador to Japan from 2013 to
2017, Ambassador Kennedy will serve
on the Boeing boards Audit and
Finance committees.
AAR signs with Hawaiian
and announces new
appointment
AAR secured its first Airbus NEO
fleet customer through the signing
of a long-term component support
agreement with Hawaiis largest airline,
Hawaiian Airlines (Hawaiian). AAR will
be providing a comprehensive flight-
hour component support for Hawaiians
brand new fleet of 18 A321neos, via its
inventory hub in Chicago and stock
positioned in Hawaii and other strategic
operating hubs.
AAR had also announced the
appointment of Mark Parry as the
Vice President of Sales and Marketing
AAR and Hawaiian Airlines signs agreement
34
at AAR Landing Gear Services, AAR
Corp. He joins the team with 28
years of experience in the aerospace
industry, holding positions in Rolls-
Royce and Goodrich Landing Gear
(now part of United Technologies
Aerospace Systems).
Delta Cargo makes key
decisions
Delta Cargo (Delta) reported the
highest average NFD percentage for
total airport to airport shipments
amongst North American carriers
over the last 12 months at 81.31%. This
continues the improved operational
reliability trend which has seen Delta
lead the North American carriers
domestic belly-carrier market in
average NFD performance for total
airport to airport shipments over the
last three quarters.
Delta has made significant
investment in its technology systems
and infrastructure as part of its focus
on operational reliability. This include
transforming the Atlanta Warehouse,
the expansion of the New York-JFK
Warehouse, the relocation of Delta and
KLM to a One-Roof warehouse in
Salt Lake City and the installation of a
new X-Ray machine allowing full skid
X-raying, RFID tracking technology
on cargo shipments with expected
rollout across the system in 2018, and
the launch of a new Delta website and
Cargo Control Center (CCC).
The CCC was launched earlier
in August, and will support daily
cargo operations across the globe.
The new Atlanta facility provides
comprehensive coverage of all aspects of
cargo transportation and management,
with the ability to track air shipments,
trucks, mail, and freight domestically
and internationally. The team will
have the ability to view the individual
elements of the shipment lifecycle and
will be able to identify issues before they
take place, as well as provide proactive
communication and support in the
situation of a delayed or cancelled flight.
Delta also appointed Vishal Bhatnagar
to the new role of Director of the CCC.
In this role, Bhatnagar will ensure central
control and delivery performance of all
freight and mail destined worldwide,
from booking, to tendering, to build-up,
to plane-side, to loading, to unloading
and to customer pick-up. In addition to
the CCC he will also be responsible to
manage Worldwide Trucking, Global
Logistics and Trade Compliance and
all Cargo Customer Service Centers,
reporting to Julian Soell, Managing
Director Cargo Customer Experience
and Operations.
Prior to Bhatnagars appointment,
Delta had named Shawn Cole as Vice
President of Delta Cargo. Cole will be
responsible for ensuring that the airlines
logistics division continues to deliver
on superior commercial, financial and
operational performance. He previously
served as Vice President Finance
and Corporate Planning, where he
demonstrated his extensive experience
in leadership, financial planning, analysis
and team coordination.
Following the award of the IATA
CEIV Pharma logistics Certification in
July, Delta announced the approval for
the carriage of the Envirotainer RAP e2
in Deltas domestic and international
widebody aircraft. This container is
ideal for shipments requiring strict
temperature control between +0C
and +20C.
The approval of the Envirotainer RAP
e2 enhances Deltas Pharma product
offering, which is available in Pharma 1
locations around the world. The active
container expands flight options beyond
those using the Envirotainer RAP t2, as it
does not require dry ice as a coolant. It
also provides significantly more capacity
for goods than the Envirotainer RKN e1.
PAYLOAD ASIA | September 2017
AMERICAS SUPPLEMENT
Virgin Atlantic appoints
AGI and welcomes new
team members
Virgin Atlantic Cargo ( Virgin
Atlantic) had appointed Alliance
Ground International (AGI) as its
cargo handler in San Francisco, where
the latter will support the carriers
growing operations at the US West
Coast airport.
The contract will extend Virgin
Atlantics working relationship with
AGI in the US, where the handler is
already handling cargo for the carrier
in Miami, Newark and Orlando. The
San Francisco facility will incorporate
a dedicated location to handle cargo
containers for temperature controlled
pharmaceutical shipments, security
cage/vault for valuable cargoes, and
a cooler for perishables. The facility
will be ideal as fresh produce accounts
for nearly half of shipments from
San Francisco to the UK, including
blueberries , fresh fruits , lettuce
and peas.
Operating twice-daily ser vices
connecting London Heathrow and
San Francisco, Virgin Atlantic had
also added another three direct flights
a week from Manchester at the end
of March this year- acting as the only
direct service between the two cities.
High cargo volumes has been seen on
nearly all of the carriers routes from
the UK to the US since the beginning
of this year. Virgin Atlantic has seen
high cargo volumes on nearly all of its
routes from the UK to the U.S since the
start of 2017.
Following an 18% increase in tonnage
from London-San Francisco in 2016,
volumes for the first half of 2017 rose
a further 15.5% year-on-year, boosted
by shipments such as fresh salmon.
Customer support has also been strong
36
Dominic Kennedy
for the new Manchester-San Francisco
route with the first month of operations
seeing tonnage rise 34% above budget
from the UK.
San Francisco has been an important
and growing West Coast cargo gateway
for Virgin Atlantic for 23 years, with
strong support from our customers on
both sides of the Atlantic. Based on our
experience of working with AGI at other
airports in the US, we are confident
they will also deliver the high quality
of services we expect for our customers
in San Francisco, said Paul Fallon,
Director Cargo Operations & Business
Development at Virgin Atlantic.
New appointments
Virgin Atlantic had also announced
a promotion for Dominic Kennedy to
Managing Director of Virgin Atlantic
Cargo. This follows changes in the
airlines senior management team, where
David Geer (who was due to take up the
post in Mid-August) will assume the
role of Senior Vice President Revenue
Management & Digital Distribution at
Virgin Atlantic.
He will take up the new role following
John Lloyd, who has held the post since
2001 after 30 years with the airline.
Kennedy had joined Virgin Atlantic in
2005 and began his career in the Fleet
and Network Planning team before
moving to Cargo in 2008. He has held
a number of leadership positions in the
Virgin Atlantic Cargo team over the last
nine years and was Director, Commercial
Planning, prior to this promotion.
Virgin Atlantic also announced the
appointment of Jarrod Paterson as
Account Manager - Melbourne to support
the launch of new Melbourne services by
partner, Virgin Australia. Paterson joins
Virgin Atlantic after nearly four years with
GSA Australia Cargo, latterly as Station
Manager Victoria.
Jarrod Paterson
Virgin Atlantic is responsible for all
long-haul cargo sales and management
services for Virgin Australia, which
since April has served Los Angeles from
Melbourne with five Boeing 777-300ER
flights a week. At the start of July, Virgin
Australia also launched a further five
Airbus A330 flights per week from the
capital of Victoria to Hong Kong.
Lafayette Airport opens
facilities for FedEx and
UPS operations
Lafayette Airport opens two new
cargo facilities to house FedEx and
UPS operations. The buildings will
be equipped with unique handling
abilities to meet an increased demand,
enabling both companies to sort and
transport packages.
The UPS Cargo Facility officially
began operations in August, with
features including: nine loading docks,
a main facilitation bay and ancillary
offices, a 3,931 square feet space
and 35,381 square feet of parking
and vehicle movement area, and two
airside parking positions that is capable
of accommodating a narrow body
commercial twin jet aircraft.
Meanwhile, the FedEx Cargo Facility
will include features such as nine
loading docks, two mainline recessed
docks, ancillary offices and support
facilities, 7,401 square feet space,
98,074 square feet of parking and
vehicle movement area and 7,804
square feet of covered area, and
an airside parking area that can
accommo date two nar row b o dy
commercial twin jet aircraft.
The $5 million facilities project was
constructed by Trahan Construction of
Lake Arthur, LA, and was financed by a
Louisiana Department of Transportation
and Development grant.
PAYLOAD ASIA | September 2017
AMERICAS SUPPLEMENT
Atlas Air inks deals and
reports optimistic outlook
Atlas Air Worldwide Holdings,
Inc. (Atlas Air) announced the ACMI
placement of three 747-400 freighters
with Hong Kong Air Cargo Carrier
Limited (HKAC), a subsidiary of Hong
Kong Airlines, in August. Through
an aircraft, crew, maintenance and
insurance agreement, the aircraft will
be operated by Atlas Air and will fly
on behalf of HKAC. The first aircraft
will enter service in September 2017
and will serve routes between Asia
and the United States. The second and
third aircraft are expected to commence
operation during 2018.
In the same month, Atlas Air had
also announced an agreement with
Nippon Cargo Airlines (NCA), where
Atlas Air will operate a second Boeing
747-400 Freighter for NCA with an
opportunity for additional aircraft in
the future. This aircraft will be flown
on key routes across the transpacific
connecting Asia and the US Service is
scheduled to begin in September 2017.
Second-Quarter 2017 Results
Atlas Air also reported its results
for the second-quarter of 2017, where
income from continuing operations,
net of taxes amounted to $39.0 million,
which included an unrealized gain on
financial instruments of $13.8 million
related to outstanding warrants, for
the three months ended June 30, 2017.
Results compared with income from
continuing operations, net of taxes,
of $20.9 million, which included an
unrealized gain on financial instruments
of $26.5 million, related to outstanding
warrants, for the three months ended.
On an adjusted basis, income from
continuing operations, net of taxes, in
the second-quarter of
2017 totaled $29.1 million, compared
with $20.2 million in the same period
last year. Diluted earnings per share
from continuing operations, net of
taxes, were $0.92 for the three months
ended June 30, 2017 and a loss of $0.26
for the three months ended June 30,
2016, reflected the impact of warrant
accounting and transaction-related
expenses. Adjusted diluted EPS from
continuing operations, net of taxes,
totaled $1.09 in the second quarter of
2017 and $0.80 in the second quarter
of 2016.
38
Earnings growth in the second
quarter reflected a 17% increase in
revenue, 15% increase in block hours,
and higher direct contribution in all of
our segments, said President and Chief
Executive Officer William J. Flynn.
Our growth also reflected an
increase in aircraft utilization and
a rise in commercial charter yields.
During the quarter, we started flying
for Cathay Pacific and Yangtze River
Airlines and added four 767-300
freighters for Amazon, including our
fifth and sixth aircraft in June. We are
experiencing good momentum in our
business, and we expect that to carry
through 2017, into 2018 and beyond. As
a result, we are increasing our full-year
2017 outlook.
American makes
expansion moves
In August, American Airlines Cargo
(American) has chosen Heavyweight
Air Express (HAE) as its General
Sales Agent (GSA) in the United Arab
Emirates. HAE replaces long-standing
GSA, Airline Cargo Resources (ACR)
which has recently chosen to downsize
its commitments in the region. This is
the second area of the world in which
HAE was chosen as Americans GSA
following its appointment to cover sales
across a number of countries in central,
east and north Africa, as well as South
Africa in mid-2016.
The majority of traffic will initially
route over London Heathrow (LHR),
where the strength of the airlines
international network means that it
can look to creatively access both its
US operation and onward destinations
such as Central and South America on
its widebody aircraft.
In the last 12 months, American has
increased cargo lift out of Heathrow with
the introduction of more freight-friendly
Lisa Oxentine
aircraft, such as the Boeing 777-300
and Boeing 787. These aircraft provide
American with the capacity to serve
additional markets.
In the same month, American had
also announced the appointment of
Lisa Oxentine as Managing Director,
Global and Key Accounts - Cargo
Sales. The position was previously
held by Roger Samways who has been
promoted to Vice President of the Cargo
Sales division earlier this year. Based in
Americans headquarter office in Dallas-
Fort Worth, Oxentine most recently
led the Customer Recovery team in
the Customer Experience department,
managing 47 systemwide managers
who focused on ensuring a top-notch
experience for customers across the
entire American Airlines network.
Expansion of trucking network
American also expanded and extended
its European trucking network to
better serve an even greater number of
customers. The trucking services operate
using flight numbers, connecting offline
cities and online points with the rest
of the airlines global network via the
450-plus flights that depart from Europe
every week. New trucking services from
Lyon, Toulouse, Bordeaux and Marseilles,
France, along with Frankfurt, Germany,
have also been set up to serve Americans
seasonal flights from Barcelona (BCN) to
Chicago (ORD).
With multiple truck options per
night, American can link together key
European cities, which helps maintain
high load factors, and increases capacity
and routing options for customers. The
Netherlands, Germany and France all feed
nightly freight into the Americans LHR
operation, which operates 20 flights per
day direct to the United States. Almost 4.5
million pounds (2 million kilos) per month
is now fed into the online destinations
for carriage on the companys aircraft.
PAYLOAD ASIA | September 2017
BE L LY AC H E
Conor McGregor vs Floyd Mayweather
In case you live under a rock and somehow missed all the hoopla, the money fight has
finally come and gone... Wait scratch that, theres no way anyone in this galaxy didnt see,
hear or have something to say about it, the hype was real folks! Fight fans across the world
waited in anticipation as both fighters upped their antics pre-fight, hyping up their fans and
causing quite the stir.
Now, members of the bellyache corner might be lacking in the boxing/fight sports knowledge
department, but we pride ourselves on our ability to find and share the brighter side of most
topics and more importsntly being very up to date with the memes taking over the twitter-
verse. So not wanting to be left out, (FOMO is real too) but also sticking to what we know,
were going to do our very own little McGregor vs Mayweather, taking you step by step through the pre and post madness.
Without further ado, we present the foul mouth confident Irishman Mr Notorious, and his opponent the understated
pretty boy of boxing with an undefeated record Mr Money.

The Press Tour:

They didnt just have a press conference, nope! These two had to take it on the road and have a whole press tour making
stops in New York, Los Angeles, Toronto and London. The jabs they were exchanging though left most speechless and excited
the fans to a point of almost starting cults. We saw Mayweather make it rain and McGregor literally wear his insults. These
are our picks of the top moments pre-fight:

Hes not dubbed the notorious for nothing. How many of us would dare After Conor went on and on about how Floyd cant read, he made it rain
or have the gravitus to pull this off? and declared: but I sure can count and I got lots to count.

Total earning: 100 million 350 million

The aftermath:
McGregor had his Mayweather
own after party with celebrated his win at
fans at the lavish one of his strip clubs
Encore Beach Club in Girl Collection.
Vegas, featuring none Wed love to show
other than his own you the footage, but
notorious whiskey, wed also like to keep
with fans sporting our jobs.
rather large cut outs
of his face.
Addressing the crowd. Of course he has to be standing on the bar. Arriving in style, with a back-pack full of cash in the passenger seat next
Drama and theatrics all the way. to him. No guesses needed for what hes going to do with all that cash.

End of the day, these two made more money from this one fight than most will see in
a lifetime and left fans with mixed reactions. For those who placed bets and lost, they
deserve a whole page just to themselves. This twitter user said it best:

Merchandising:
Special mention has to go out to all those that jumped on the
49 and 1 bandwagon. Our question is, what are you going to do
with all that merchandise now? *awkward*

Despite the outcome, we can all agree that both guys deserve a round of applause for conning
us all into thinking they actually hate each other, when deep down they actually have mutual
respect for one another.
But all jokes aside, both these guys did a amazing job. Props to Conor McGregor just for stepping
into the ring and hanging with one of the best for so many rounds, and Floyd Mayweather for
getting the job done, 50-0 is something to brag about.

40 PAYLOAD ASIA | Septmeber 2017