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The weekly newspaper for air cargo professionals No. 1,044
12 August 2019
Supreme leadership in logistics
Cebu Pacific enters freighter market
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rofits Filipino airline Cebu Pacific has taken delivery of its first ATR 72-500 Freighter, having converted the aircraft from passenger form. The freighter is the first of its type in the Philippines, and will let Cebu Pacific carry cargo to destinations served by airports with short runways only suitable for turboprop aircraft. The ATR is equipped with a Large Cargo Door allowing it to carry up to seven LD3 containers or five PBJ pallets, carrying up to eight tonnes of cargo. The conversion was performed at the Sabena Technics facility in Dinard, France. The ATR 72-500 is the first of two passenger aircraft to be converted for cargo use and operated by subsidiary Cebgo.
Page 12
INSIDE cargolux agrees with unions
After a year of negotiation, Cargolux Airlines International has signed new collective work agreements with the LCGB and OGBL trade unions ... page 2
10 more years at heathrow
swissport has committed to 10 more years at SEGRO’s Heathrow Cargo Centre by signing a 10-year lease on a 9662 sq m warehouse unit on ... page 3 rhythm of the night
with 24/7 uncongested operations, John C Munro Hamilton International Airport is well placed to attract more e-commerce traffic ... page 8
Signs of modest recovery appear premature
Signs of a modest recovery for air cargo markets appear to have been premature, with IATA reporting another month of falling volumes. Freight tonne kilometres decreased by 4.8% in June, the eighth month of year-on-year declines with only Africa seeing an increase. The International Air Transport Association (IATA) says capacity growth remains subdued and load factors continue to fall.
Globally, trade growth is languishing, and business uncertainty is compounded by the latest tariff increases in the US-China trade dispute. Alexandre de Juniac, director general and CEO says: “Global trade continues to suffer as trade tensions— particularly between the US and China—deepen. As a result, air cargo markets continue to contract. Nobody wins a trade war. Borders that are open to trade spread sustained prosperity.
That’s what our political leaders must focus on.” Asia Pacific contracted 5.4%, with IATA saying that while the US-China trade war was an important factor, it was not solely responsible for the fall. North America fell 4.6% with the US-China trade tensions having an affect but FTKs on Europe, South America and Middle East routes were also lower. European airlines declined 3.6% with comparatively strong intra-Euro-
pean volumes minimising the impact of weaker German exports. The Middle East was down 7% with volumes to Europe and Asia Pacific proving particularly weak. Latin America fell 1% with most of the decline coming from weaker intraSouth American markets, especially in Brazil and Argentina. Africa was the only region reporting growth, up 3.8% with Africa-Asia proving strong, up 12% year-on-year.
high volumes in edmonton
with more companies making Edmonton International Airport their logistics hub, it is becoming Canada’s leading gateway for biopharma and ... page 9
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08/08/2019 14:26
Old Words
During August, we are looking back at old editorial comments that were once a feature of Air Cargo Week
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e were congratulated by a Saudi-based reader recently for carrying “so much information on the freight forwarding industry - or shall I say ‘logistics’, which seems to be a new word for what many of us have been doing for the past 30 years or so.” The same theme ran through our conversation with Emery’s new chief executive, Roger Piazza, in an exclusive interview with ACW during his flying visit to Europe last week. He had just visited a major automotive customer and observed that trucks he had passed on the road which once would have carried a haulage or transport slogan were now branding themselves as major international logistics organisations. Since the same thought had already occurred to us, we asked what factors make the difference these days between those who carry out global supply chain management and those who only talk about it. We’ll carry the full interview in a forthcoming issue, but his answers can be summed up as innovation, infrastructure and listening to the customer. Conventional laws of economics suggest that when times are tough, price counts for more than quality and companies in the ‘bargain basement’ therefore perform best. Emery’s disappointing third-quarter and nine-month figures may appear to contradict the theory that when business slows, the finance director looks to put pressure on colleagues not to sit on stock. Second - and Piazza was quite candid about this - “we took our eye off the ball”. The Asian crisis, and Europe’s seeming ability to talk itself into a recession even when the fundamentals are quite good, was only one part of the picture and he was making no excuses on Emery’s behalf. The new man’s reputation as a hard-hitter suggests that normal service will be resumed pretty soon. 23 November 1998
Quote of the week
Cargolux comes to agreement with unions
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fter a year of negotiations, Cargolux Airlines International has signed new collective work agreements with the LCGB and OGBL trade unions. The two agreements for more than 1,300 employees will increase salaries by 6% for ground staff and 4% for pilots over the four-year duration of the contracts. Staff hired since December 2015 will benefit from additional adjustments of salaries, off-day and holiday entitlements. One of the agreements covers the period between 1 December 2018 and 31 December 2019, and the second will become effective from 1 January 2020 until 31 December 2022. Richard Forson, president and CEO of Cargolux says: “This agreement cements job security within our company while contributing to Cargolux’s sustainability on both social and economic fronts. Building on this solid foundation, we can strengthen our position as a leading player in the global air freight industry.” Paul de Araujo, union secretary of the Luxembourg Confederation of Christian Trade Unions (LGCB) says: “The new agreement addresses the main concerns of our members; a salary increase, improved work-life balance for employees and the pilots’ flight time limitations. The elimination of what has often been referred
to as ‘B-Scale’ should make it possible for Cargolux to hire the staff it needs.” Michelle Cloos, central secretary of the Independent Luxembourg Trade Union Confederation (OGBL) says: “We are happy that the social partners could negotiate a substantial salary increase and measures improving the work life balance of Cargolux employees. This is a very important recognition of the employees’ efforts during the last years and their contribution to the good financial results of the company for all Cargolux employees, ground staff and pilots.”
Hong Kong Air Cargo Industry Services (Hacis) has extended its SuperLink China Direct (SLCD) road feeder service to Zhuhai and the western Pearl River Delta. The service comes from planned collaboration with Civet (Zhu Hai) Logistics, a subsidiary of Chu Kong Shipping Enterprises following the signing of a partnership agreement covering the development of joint logistics activities throughout the western PRD. The region is home to many electronics manufacturers and technology companies, with the Hong Kong-Zhuhai-Macao Bridge providing faster links to and from Hong Kong International Airport. Hacis’ SLCD network includes Civet Port next to the exit of the bridge, and the surrounding area of the PRD. The move has been facilitated by Zhuhai Customs’ approval of the Quick Pass System using an electronic lock and GPS technology. This allows the customs authority to monitor cross-border cargo, minimising cargo inspections at the border, streamlining the clearance process and expediting the flow of transhipment cargo. Vivien Lau, managing director of Hacis says: “The depot is ideally-located at Hongwan, in Zhuhai’s Nanping Town, adjacent to the
Zhuhai Free Trade Zone. This new SLCD route will cover Zhuhai, and additional centres in the western PRD such as Zhongshan, Jiangmen, as well as the Hengqin special economic district and Macau. We can also now serve Zhuhai airport, so extending coverage to other mainland cities by air.”
Hacis drives into Pearl River Delta
United Cargo adds widebody TempControl flights to Mexico City
“Nobody wins a trade war. Borders that are open to trade spread sustained prosperity” Alexandre de Juniac, director general and CEO of IATA
United Cargo has extended its TempControl network for temperature-sensitive products to Mexico City through its interline agreement with AeroUnion. TempControl shipments destined for Mexico City International Airport via the interline service may be tendered at any certified
handling location in United Cargo’s TempControl network. Shipments will be transported to Los Angeles International Airport then transferred onto AeroUnion’s daily widebody service from Los Angeles to Mexico City, to be collected from AeroUnion’s facility. Jan Krems, president of United Cargo says that while the airline provides TempControl on narrowbody flights from Mexico City, customers were demanding widebody capacity. He says: “This new interline service provides customers shipping widebody freight to MEX with the same relentless focus on control and integrity and the same level of service excellence they rely on throughout our global TempControl network.” United Cargo’s TempControl network has been extended in Europe to also cover Athens, Greece; Naples, Italy; Prague, Czech Republic; Venice, Italy and a second location for Milan, Italy. In the US, Portland, Oregon and Salt Lake City, Utah have been added to the TempControl network.
SpiceJet adds Hyderabad to domestic network
Hyderabad has gained a new freighter route, with SpiceJet operating six flights a week to Rajiv Gandhi International Airport. The first Boeing 737-700 Freighter flight landed on 1 August, and arriving from Chennai at 21.45 and departing for Delhi at 22.45h. The service operates on a Chennai – Hyderabad – Delhi – Mumbai – Bangalore route and has the capacity for about 20 tonnes of cargo. 2
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Shippers will have greater access to markets in the Commonwealth of Independent States via Delhi, as well as quicker domestic deliveries. SGK Kishore, CEO of GMR Hyderabad International Airport says: “With the addition of this new freighter, customers will have more options to ship their goods within the country and beyond. The availability of high-quality, daily cargo services
is essential for the development of trade especially in high-value and time-sensitive products.” Manjiv Singh, chief project officer of SpiceJet says: “SpiceJet is committed to invest in the growth of Indian trade and commerce. India is consciously taking bold initiatives like ‘Make in India’, promoting and growing our ‘Smart Cities’ and becoming a $5 trillion economy in the fastest possible time.”
aircargoweek.com 08/08/2019 12:52
Swissport commits to 10 more years at Heathrow
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wissport has committed to 10 more years at SEGRO’s Heathrow Cargo Centre by signing a 10-year lease on a 9,660 sq m warehouse unit on Shoreham Road. The Cargo Centre covers 112,000 sq m and has a unique airside location offering direct access to the apron, reducing waiting times and providing more certainty around deliveries. The Swissport agreement follows long-term commitments from Air Canada and Worldwide Flight Services to re-gear leases this year. The lease includes a clause allowing SEGRO to make future developments of the Cargo Centre to support the proposed expansion of the airport. Gareth Baker, regional director for Heathrow at SEGRO says: “Swissport’s decision also reflects the importance of Heathrow Airport for UK exports and imports and the strong demand for the properties in our portfolio. We’re pleased to extend our relationship so we can continue working together to capitalise on future growth opportunities for air cargo in the UK.” Jason Gaskell, COO Cargo Western Europe at Swissport says: “Heathrow remains key to our UKI Cargo operations, our commitment to SEGRO’s Heathrow Cargo Centre will allow Swissport
Swiss to roll out new routes
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ACWBITEs A Douglas C-118A Liftmaster operated by Everts Air Cargo has experienced substantial damage on a flight in Alaska. The aircraft, N451CE, which first flew in 1953 is reported to have struck a raised bank and damaged the landing gear while landing at Candle 2 Airport at 13.55h on Thursday 1 August. Flight number 5V25 was coming from Fairbanks International Airport. Air Canada Cargo has changed ground handler at New York Newark Liberty International Airport. The airline switched to Choice Aviation Services on 1 August but is within the same building so the pick-up and drop off remains the same.
to strengthen its air cargo operations and service capabilities at Heathrow airport allowing our customers a stable platform for further growth.”
Air Niugini will launch direct flights between Port Moresby and Nadi, Fiji on 5 September. The weekly flight will complement existing services via Honiara in the Solomon Islands. The direct flight will take four hours 50 minutes using a Boeing 737.
wiss WorldCargo will increase capacity to the USA and Japan with new flights to Osaka and Washington DC, and upgrades to Tokyo and Miami services. The freight division of Swiss International Air Lines will launch the Osaka and Washington flights in March 2020, using an Airbus A340-300 on the former and an Airbus A330-300 on the latter. The Osaka flights will be operated five times a week, while Washington will be served daily during the summer timetable and five times a week during the winter. The services will offer weekly payloads of 100 to 150 tonnes in each direction. In addition, daily flights to both Tokyo and Miami will benefit from the use of Boeing 777-300ERs from next year. The Zurich-Tokyo flights will receive a 777-300ER from February 2020 and Zurich-Miami flights will switch to the 777-300ER from the summer. Alexander Arafa, head of global area and contribution management at Swiss WorldCargo says: “We are very excited to announce our new destinations for 2020, which allow us to expand our reach within strategic global markets. By increasing capacity to and from major locations in Japan and the USA, we are able to further meet the needs of our customers in these cities and their surrounding regions.”
Airway Billie Jo’s Page 3
Cygnets in a car park
IT may not equal snakes on a plane but cygnets in a car park were a knotty problem for UK forwarder Davies Turner as it faced a tough logistics challenge recently. A group of cygnets strayed into one of its regional logistics hubs. The logistics company gently returned the misplaced freight to their parents on a nearby lake with a just in time delivery without feathers flying.
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NEWS
It’s time to pull together on Brexit Trevor Hoyle, Senior VP, Northern Europe Operations FedEx Express
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here is an old saying that a week is a long time in politics. Well, the last few months have felt like a lifetime. It was not long ago, back in March, that we were all glued to our phones waiting for EU leaders to decide whether to grant the UK its first extension on the Brexit deadline. So too were UK leaders as they struggled to reach agreement among themselves on how to proceed. Fast-forward to August and we’ve had further Brexit extensions granted, a Conservative Party leadership race, a new British Prime Minis-
any means necessary. A national government-run campaign to prepare businesses is in the works. Extra funding has been pledged to support those industries most impacted in the event of a No Deal. Even the Confederation of British Industry, which has repeatedly voiced concerns about No-Deal, is now talking more openly about its own guidance for companies preparing for this outcome. The time for disagreement and discussion on the issue of Brexit is now over. Whatever one’s views, it is vital that we all pull together to get the business community ready for a potentially significant change in the trading environment. At FedEx Express, we have been preparing for the broad spectrum of potential Brexit scenarios over the last two years. Across all areas, we have invested in the required capability, capacity and flexibility to continue delivering outstanding service to our customers and support for our team members. These preparations are based on decades of experience facilitating cross-border trade in often complex and evolving trading environments. They are also informed by our unique clearance capabilities. FedEx Express is one of the largest Customs brokers in the world, with almost 2,500 full time team members working on customs clearance procedures in Europe alone. However, the ability to operate seamlessly after Brexit relies on a complex network of organisations responsible for the frictionless flow of goods between the UK and EU. And it starts with trading businesses and their own readiness for maximal change. That is why all of us involved in this complex network need to identify how we can help and stay laser focused on getting our businesses through this period – and indeed helping them embrace new opportunities beyond Brexit. The past year, for example, FedEx has hosted webinars, workshops and provided a dedicated
AIRFREIGHT’S BREXIT VOICES ter and a government that has put the No Deal option firmly on the table. Politics can always surprise, but the air feels heavier now. A No-Deal outcome seems to be a more likely possibility than at any time since the negotiations started. The new UK Prime Minister has set up a ‘War Cabinet’, meeting every Monday with the sole objective of delivering Brexit by 31 October by
Hoyle support team to companies concerned about shipping beyond Brexit. FedEx customer or not, we have opened up our expertise on customs and cross-border trade. Trade is our business and we are playing our part. Our suite of publicly-available materials on Brexit has also covered everything from basic checklists to guidance around commercial invoicing, EORI numbers and other important technical areas. We do not intend to slow down. The next wave of our Brexit preparedness campaign is launching soon, focused on practical exporting guidance for SMEs. Over the last two years, I have had the opportunity to meet with many political representatives here in the UK and mainland Europe, as well as business advocacy groups and the major port, Customs and border authorities. What is clear is that everyone wants to make this work, wherever they land on the Brexit debate itself. Everyone wants to see our businesses continue to trade seamlessly across borders with minimal disruption so they can continue to grow beyond Brexit. There is still a lot we can do to support this effort. Now is the time to re-double our efforts, pull together and get our companies and communities ready for whatever the future holds.
Important dates in Brexit’s timetable September 3: UK Parliament returns after its summer recess. September 29-October 2: Conservative party conference held October 17-18: EU summit 23:00 GMT October 31: Brexit
After Brexit day: Trade talks and transition begin December 31, 2020: End of transition December 31, 2022: Entering the backstop
Share your Brexit thoughts: james.graham@azurainternational.com
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aircargoweek.com 08/08/2019 12:54
Cathay Pacific returns to profit, cargo revenue falls
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athay Pacific Group has returned to profitability in the first half of 2019, but cargo proved weaker due to US-China trade tension. Profits for the first six months of 2019 were HK$1.3 billion ($170 million) compared to a HK$263 million loss in the same period of 2018. Much of the success came from lower fuel prices but the group was adversely impacted by a stronger US dollar. Cargo revenue suffered in the period, down 11.4% to HK$11.5 billion as global demand became weaker due to the US-China trade tensions. On 2 August, US President Donald Trump announced tariffs on a further $300 billion of Chinese imports and the US officially named China a “currency manipulator” on 6 August, causing the Chinese yuan to fall sharply against the dollar. Cargo capacity increased 1.1% as additional belly space became available on Cathay Pacific
and Cathay Dragon passenger aircraft. Cathay Pacific says that faced with weak demand, it has rationalised freighter capacity and emphasised shipments of specialist cargo. Load factors fell 4.9 percentage points to 63.4%, tonnage was down 5.7% to 979,000 tonnes and yields decreased 2.6% to HK$1.88. Highlights of the first half of the year were good growth in Southeast Asia in early 2019, with increased freighter services to Singapore from January. The joint business agreement with Lufthansa Cargo was extended in April to cover eastbound shipments. The agreement covers connects to Hong Kong from Frankfurt, Amsterdam, Barcelona, Brussels, Dublin, London Gatwick and Heathrow, Madrid, Manchester, Milan, Paris, Rome and Zurich. In April, Cathay Pacific became the first airline in the world to receive the new IATA CEIV Fresh certificate for handling perishable cargo.
Schnitzler to lead Budapest
Dr Rolf Schnitzler has been named the new chief executive officer of Budapest Airport, taking over from Jost Lammers who is moving to Munich Airport. Dr Schnitzler has more than 14 years of experience in corporate management at private airport investor AviAlliance. He has also been a member and chairman of the supervisory board of Budapest Airport since 2011. Gerhard Schroeder, chairman of the board of directors of Budapest Airport says: “We have a clear vision for the future of Budapest Airport and I believe Rolf Schnitzler is ideally qualified to help us realise that vision over the coming years. He will take over from the acting CEO, Jost Lammers, and I would like to express my thanks to Jost Lammers for his important contribution to Budapest Airport since 2007.”
IL-76 destroyed in air strike An Ilyushin IL-76TD being operated by SkyAviatrans has been destroyed in Libya after being hit during an air strike in Misrata on Tuesday 6 August at 00.17h. The aircraft, UR-COZ is reported to have landed at Misrata International Airport when it was hit by the air strike, reportedly carried out by the Libya National Air Force. It had flown from Ankara-Esenboga Airport in Turkey and the Ukrainian Ministry of Foreign Affairs say it was carrying humanitarian aid for the Libyan Red Crescent. On Twitter, author and defence analyst Babak Taghvaee claims his sources have told him the aircraft was carrying weapons for an Al-Qaeda-affiliated Islamic group. He also claims UR-COZ was owned by Volaris Business, which he describes as a shell company created by Turkey for illegally transferring weapons to Libya.
Codeshare for JAL and Kalitta
Japan Airlines has launched a freighter codeshare with Kalitta Air, operating three times a week between Tokyo and Chicago. The flights between Tokyo Narita and Chicago O’Hare started on 1 August and are operated by one of Kalitta Air’s Boeing 747400 Freighters. The services leave Chicago on Wednesdays, Thursdays and Saturdays, arriving in Tokyo the next day after a technical stop in Alaska. Japan Airlines has chartered freighter flights based on seasonal demand for a number of years but this agreement will offer scheduled services between Asia and North America.
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NEWS
New USA and Asia vice presidents for Silk Way
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ilk Way West Airlines has promoted Jenny Zhao (pictured) to the role of vice president Asia Pacific region, taking up the role on 1 August. She is responsible for providing strategic and tactical direction for further enhancing business operations in Asia Pacific, and takes over from Nurid Aliyev who has stepped down for personal reasons. Wolfgang Meier, president and CEO of Silk Way West Airlines says: “Thanks to her long experience in the air cargo industry, Mrs. Jenny Zhao will be able to give a new impulse to the activities of Silk Way West Airlines in Asia-Pacific region, which operates in a highly competitive environment. Her expertise and capability in the sector would further increase customer satisfaction. I wish Mrs. Zhao success for her new assignment.” Zhao has held senior management positions at various cargo airlines over the years including the last two years at Silk Way as CCO APAC and head of the Shanghai office. Silk Way Airlines USA has named Fadi Nahas as vice president The Americas, responsible for managing business development initiatives.
iLogistics Center is ready for action
cargo-partner has completed the construction of its iLogistics Center near Ljubljana Airport in Slovenia, which will officially open next month. The iLogistics Center has 25,000 sq m of warehouse space and 4,000 sq m of office space, making it one of the largest warehouse complexes in the region. Construction was completed within 11 months and operational activities in the warehouse have begun as of this month. Throughout August, other offices and warehouses in Ljubljana including the Slovenian head office will be relocated to the new facility.
The Ljubljana Airport iLogistics Center offers short and long-term storage as well as value added services including packing, labelling, cross-docking, consolidation, multi-channel distribution, e-fulfilment and other contract logistics services. The warehouse has 44 truck loading docks and a storage capacity of over 20,000 pallet slots, as well as a 6,000 sq m small parts store and 5,000 sq m for cross-dock and block storage areas. Viktor Kastelic, managing director of cargo-partner Slovenia says: “The new iLogistics Center is a big milestone for cargo-partner in Slovenia and we are certain it will boost our growth not only locally in Slovenia, but in the wider region as well. At the same time, we put a lot of effort in making the new working environment welcoming and motivating for our colleagues.”
AIT Worldwide acquires Unitrans International AIT Worldwide Logistics has acquired Los Angeles-based freight forwarder Unitrans International Corporation, enhancing expertise on trade lanes in Asia and Europe. The acquisition by AIT follows deals last year to take over food logistics forwarder WorldFresh Express and ConneXion World Cargo in October and December respectively. Vaughn Moore, president and CEO of AIT says: “We are delighted to welcome everyone at Unitrans as the newest members of our team. Their vast experience with high-quality, specialised international logistics services will strengthen AIT’s solutions and advance our company’s vision by boosting our global reputation.”
Keith Tholan, chief operating officer of AIT adds: “We understand that Unitrans is a highly successful, sophisticated enterprise and our aim is to promote stability for their customers and teammates. AIT will provide whatever support is needed, but Unitrans will otherwise continue to run their operation with their customers’ best interests as the primary driver.” Andrew Shadegg, president of Unitrans says: “Our discussions with AIT management and staff provided us a very clear indication that our company cultures are very similar. We also share a ‘can-do’ attitude that will enable both AIT and Unitrans to grow and succeed together in the future.”
Tigers and Doozee are extending their collaboration by rolling out the freight rate quote engine across Europe and the USA in time for the shipping peak season. The supply chain company has been working with Doozee as the official launch customer since March and following a successful trial on Australia – China trade lanes, is now ready to go live. Doozee works with existing rate management platforms and incorporates a built-in rate management platform to generate quotes in less
than a minute. Patrick Diesing, director – group business process at Tigers says: “Doozee is a great partner for Tigers because the team is happy to collaborate and develop the platform in a way that works for freight forwarders and offers an end-to-end solution.” The next stage for Tigers is to support implementation with key partners such as DEAN World Cargo and Ewals Cargo Care to ensure seamless integration of services across Tigers’ global network.
He will manage business for Silk Way USA and affiliated cargo carriers in Azerbaijan, Silk Way Airlines and Silk Way West Airlines throughout the Americas region. Nahas will also facilitate the relationship with Global Feeder Services, the exclusive general sales agent responsible for maintaining and further developing customer and sales activities. The GSA will work with Silk Way’s USA teams in Houston, Chicago and New York to deliver high service levels to customers. Wolfgang Meier, president of Silk Way West Airlines says: “We believe Fadi’s many years of experience in progressive supply chain, transportation, logistics and sales will add great value to our customers. We are excited to work with him toward strengthening our valued customer relationships and building upon Silk Way’s proven record of success in delivering excellent cargo solutions to customers around the world.” Nahas says: “On behalf of SWA USA, we look forward to working with GFS to strengthen our valued customer relationships and build upon our proven track record for providing worldwide cargo solutions.”
time:matters enters African market time:matters has established a hub in Brussels, providing access to 16 African destinations through Brussels Airlines’ network. Through the Brussels hub, customers can access Abidjan, Accra, Banjul, Bujumbura, Conakry, Cotonou, Douala, Dakar, Entebbe, Freetown, Kigali, Luanda, Lomé, Yaoundé, Ouagadougou and Monrovia. Customers will enjoy the same benefits as at other time:matters European hubs in Frankfurt, Munich and Vienna. The African stations will offer import handling times starting at 120 minutes for time-critical shipments including spare and machine parts for the oil, shipbuilding, mining and food industries. Of the 16 African stations, 14 will be served with standardised express transport services and time:matters will offer 81 direct flights a week.
Alexander Kohnen, CEO of time:matters says: “We are considerably extending our standardised offering of Special Speed transport solutions in the African market by including 14 new stations. Thanks to the new hub in Brussels, we are in a position to offer our customers access to our highly efficient network with the usual level of reliability and speed.”
Softbox, supplier of temperature control packaging and thermal covers for the life science and logistics industries has named Kevin Valentine as global CEO from 1 September. Valentine has over 25 years of global execu-
tive leadership experience in the temperature control packaging and thermal covers industry. He will ensure Softbox expands its reputation for innovation and client service. Wayne Langlois, global president of Softbox will return to his former position as a board member and will work in close collaboration with Valentine and his global leadership team. Langlois says: “Kevin is a very experienced and well-respected industry leader and I’m delighted to appoint him as my successor in designing and executing our exciting growth plans.” Valentine says: “I’m excited to deliver on the opportunity to become Softbox’s global CEO. I look forward to working with our global team to lead the company to the next step of its strategic and financial success in the market.”
Valentine named global CEO of Softbox
Freight rate quote engine ready for the peak season
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Andrew Jillings, chief executive officer of Tigers says: “We are now extending the benefits of Doozee to our core partners, which is a significant step in the ongoing digitalisation of processes at Tigers, and will bring us one step closer to incorporating instant freight rate quoting into Tigers’ flagship platform, SmartHub:Connect.”
aircargoweek.com
08/08/2019 12:57
Automation and digitalisation are what forwarders want
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reight forwarders believe increased automation and digitalisation will be the most important trends over the next 12 months, and will be a good thing. In a survey conducted by IAG Cargo, more than 400 freight forwarders in 47 countries shared their views on key trends. The report, Cargo Next, found that 70% of freight forwarders are expecting the rate of technological change to increase in the year ahead, and 81% think this will be a good thing. Of the participants, 55% believe increased automation and digitalisation will be the most important trends in the near future. Enikö Matanov, director of strategy and revenue optimisation at IAG Cargo says: “We are hugely encouraged by the global appetite of freight forwarders to implement real change in the fields of digitalisation and automation. The scope for digitalisation and automation to transform the cargo industry is huge. We
are dedicated to bringing advancements from within and outside the air cargo industry to continually improve and deliver the best service for our customers.” On 2 August, IAG Cargo released its second quarter results. Revenue was down 3.2% at constant exchange to €281 million, with volumes remaining static as the air cargo market remains slow. Sold cargo tonnes were down 1.1% to 172,000 tonnes and cargo tonne kilometres were down 0.4% to 1,410 million. In the first six months of 2019, cargo revenue dipped by 0.2% to €556 million, with sold cargo tonnes up 0.9% to 346,000 tonnes. The 0.2% fall in revenue, representing a 3.1% decrease at constant currency rates, reflect weak market conditions in airfreight and global trade. Lynne Embleton, CEO of IAG Cargo says that the long-term focus is transforming its business
Boehler to lead operations in EMEIA for Crane
British Airways Boeing 747 with retro BOAC livery and leading investment and digital innovation. She says: “In June, we announced the latest development in our APIs, giving customers the ability to seamlessly add our network to their own booking systems. Our API development has also enabled us to integrate with e-booking platforms from major distribution partners.
“The development of IAGCargo.com now forms a core pillar of our customer offering, with improvements being deployed bi-monthly, greatly enhancing our customer experience. We are now taking 28% of our total global bookings online saving customers significant time in the booking process.”
Crane Worldwide Logistics has named Stefan Boehler as vice president of operations for Europe, Middle East, India and Africa. In his role, Boehler will manage operations in the region and report to vice president EMEIA Marco Nazzari. The company has growth significantly in the region, opening new offices in Rotterdam, Frankfurt, Brussels and Dubai, with expansion of the Tilburg contract logistics site planned for the fourth quarter. Boehler, who will be based in Frankfurt, has over 15 years of experience in the freight forwarding industry, having previously worked at Schenker and Kuehne + Nagel. Nazzari says: “Stefan brings with him a wealth of experience in the industry and will make an impact on improving our operations throughout the region, in growing our product portfolio and developing future leaders.”
Gebrüder Weiss extends Silk Road network to Tashkent Gebrüder Weiss has increased its coverage on the Silk Road by opening a representative office in Tashkent, Uzbekistan on 30 July. The Tashkent office adds a piece to the mosaic of expanding the land route between Europe and China, and complements offices in Turkey, Georgia, Armenia, Kazakhstan, Russia and China. Thomas Moser, director and regional manager Black Sea/CIS at Gebrüder Weiss says: “This adds to our local presence in Central Asia, enabling us to pave the way for our customers to a promising market, as the links between Europe and Asia are becoming increasingly important. In addition to land transport, air and sea freight also make up part of our service portfolio.” Customers in Tashkent and the surrounding area will be served by local staff, and as an organisation the Uzbek office will be assigned to the Almaty, Kazakhstan branch.
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canada
Express shipments are the rhythm of the night
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ith 24/7 uncongested operations, John C Munro Hamilton International Airport is well placed to attract more e-commerce traffic, says marketing and communications director Dina Carlucci. Hamilton is Canada’s largest overnight express cargo airport, and has experienced strong growth over the past few years. In 2018, cargo volumes increased by 5% over 2017, and were 20% higher than in 2016. Carlucci says: “This steady growth confirms that Hamilton International continues to be a global gateway for facilitating goods movements across Canada and the globe, thanks to solid partnerships with Cargojet, DHL, UPS and Purolator.” The airport is continuing to perform well this year, with volumes up 3.3% year-to-date. Carlucci comments: “Hamilton International expects cargo growth to extend through the remainder of the year and continue the trend we’ve seen over the last three years of yearover-year growth of cargo activity.” Operating 24/7 makes Hamilton attractive for carriers moving time sensitive goods from the growing e-commerce sector. Carlucci says: “The airport’s cargo operations also support local manufacturers, suppliers and businesses that rely on air cargo transportation services, particularly for commodities that are higher value and
time sensitive, such as medical devices, pharmaceuticals or perishables.” In a 24-hour period, Hamilton can expect 15 large cargo movements, of which nine will be at night and the other six during the day. This is important to the local economy, being worth C$386 million annually to regional gross domestic product. Located 40 miles southwest of Toronto at the west end of Lake Ontario, most of the cargo travelling through the airport originates or is destined for the local area. Carlucci adds: “Hamilton International is also a critical waypoint facilitating the movement of goods across the country, into remote northern communities and across the border into the United States.” To ensure the airport is able to cope with con-
Vancouver beats cargo targets
As the closest major North American city to Asia, transpacific traffic is very important to Vancouver, which has broken cargo targets years earlier than planned. Jason Tse, manager commercial leasing – cargo of Vancouver Airport Authority says the airport in British Columbia handled more than 338,000 tonnes of cargo in 2018, 8.1% more than 2017, reaching the 2020 target two years early. So far this year, Tse says cargo has increased slightly and that some recovery is expected in the second half of the year. The range of cargo passing through Vancouver airport varies from prized British Columbia fruit and seafood to high-tech products and other items. The US and China remain the top trading partners while other important markets include Japan, South Korea, Hong Kong, the UK and Germany. Vancouver’s Pacific coast location is also an advantage, added to being very closed to the US border. Tse says: “YVR is well-positioned to
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facilitate exchange between Asia and the North American marketplace. We have easy access to North American highways, a dedicated truck border crossing and proximity to the Vancouver Harbour. This means efficient, low-cost, sea-toair and air-to-ground cargo transfers.” Growth is expected to be limited in 2019, but the outlook for Vancouver remains positive. Tse says: “As Canada is the only G7 country to have free trade agreements with all other G7 countries, there are opportunities to increase international trade, which allows for growth in air eligible commodities.” Tse sees Vancouver remaining a significant market to reach global destinations, with its links to Asia and Europe. He says: “It is close to highways and a 25-minute drive to the US border. There are five major border crossings between the Greater Vancouver Region and the US, while bilateral agreements between Canada and the US provide easy access to all major North American markets.”
tinued growth, an Airfield Rehabilitation and Modernisation Project started on 6 August to restore the two main runways, supporting taxiways and lighting systems over the next four years. This will improve efficiency, reliability and safety of airport operations and allow Hamilton to accommodate larger wide-body aircraft. Runway 12-30, the primary runway will be strengthened to facilitate current and future heavy freighter traffic. Instrument landing and low visibility systems will be rehabilitated. The secondary runway, 06-24 will also receive investments to improve efficiency. Taxiways will be upgraded to cope with growing 24/7 operations and LED lighting technology will be implemented, helping reduce greenhouse gas emissions.
Carlucci says: “These airport projects will create more than 350 construction jobs, with an additional 863 full-time jobs to be created over the next five years, representing an additional C$149 million in labour income. The airport anticipates that the investment will facilitate approximately C$2.1 billion in economic activity annually.” E-commerce is rapidly growing globally, and Canada is no exception. It is predicted to represent 10% of total retail spending in 2019, valued at C$50 billion. Carlucci says: “Hamilton International is well positioned to support this booming industry with its large cargo facilities that operate 24/7, enabling companies to meet the tight deadlines that e-commerce demands.”
Cargojet keeps delivering e-commerce With the growth of e-commerce unlikely to stop anytime soon, Cargojet is confident it will continue to deliver strong results. The Mississauga, Ontario-based airline says revenue growth of more than 10% comes from ever-rising e-commerce demand. Cargojet is Canada’s largest provider of overnight cargo services, mainly carrying e-commerce goods on domestic services. On international routes, perishables and pharmaceuticals are the main goods it handles. Cargojet handled record volumes to meet demand for online retailer Amazon’s Prime Week, operating an additional 23 flights during the week, and e-commerce is expected to continue to grow. The airline tells Air Cargo Week: “The longterm will continue to benefit from e-Commerce growth including seven day per week delivery.”
On 31 July, Cargojet released its second quarter results reporting that revenue increased 9.3% to C$119.1 million and adjusted EBITDA was up 30.2% to C$37.5 million. Commenting on the results, president and CEO Ajay Virmani said: “As the courier industry shifts to 7 days-a-week delivery model to accommodate faster service expectations of e-Commerce retailers, we are uniquely positioned to execute on this new model. “We are also finding growing synergistic opportunities in our ad hoc and ACMI charter business that is improving fleet utilisation and overall margins. “At the heart of our strategy is service excellence and I am extremely proud of Cargojet team that continues to exceed customer expectation by delivering unprecedented on-time performance.”
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canada
Edmonton keeps its cool with high volumes
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ith more companies making Edmonton International Airport their logistics hub, it is becoming Canada’s leading gateway for biopharma and temperature sensitive cargo. The airport’s e-commerce, cargo and aviation real estate director, Mammen Tharakan tells Air Cargo Week that a number of Chinese companies are making Edmonton their North American base. Among others, China’s EHL International Logistics signed an agreement in November last year to make Edmonton airport its North American logistics consolidation centre for goods moving between China and North America. The types of commodities being transported is evolving, with Tharakan saying: “The resource sector continues to provide a solid foundation of steady air cargo demand and project cargo, however, the growth in e-commerce continues to drive volume growth. Edmonton is leading in the space of biopharma and transport of other perishable and temperature sensitive cargo. Significant investments have been made by EIA to support this high revenue segment.” The cool chain has also benefitted from Edmonton becoming the first airport in Canada to pursue IATA CEIV Pharma certification. The airport operator’s contribution to CEIV Pharma will include opening a Fresh Cargo Centre cooler facility to be used jointly by certified cargo carriers. Tharakan says: “With 460 sq m of refrigerated warehouse space and direct airside access, the
facility will be ideally suited for the handling of perishable cargo such as pharma, meat, fruit and produce.” Construction has also been completed on Runway Developments’ 2,300 sq m logistics centre, a mixed-use cargo facility with leasing opportunities for customs brokers, logistics companies and freight forwarders. Tenants include Flying Fresh Air Freight, Farrow and Livingston International. Other developments in the area are also likely to have an impact on air cargo. Tharakan says: “Not actually part of EIA but certain to drive air cargo growth is Amazon’s new Fulfilment Centre being constructed across the highway from EIA.” Aurora Cannabis are also completing their 27,800 sq m Aurora Polaris facility for value added edible products including baked goods, chocolates, mints and infused beverages. The cannabis company’s facility is adjacent to Aurora Sky, which produces around 100,000 kilos a year. Plant Box, which is experienced in providing LED lighting has made Edmonton its North American logistics hub. The Chinese company plans to focus on small and medium sized commercial operators and academic institutions specialising in indoor plant growth, primarily cannabis. Tharakan says: “The Plant Box announcement is an example of a firm seeing the value in Edmonton International Airport as a logistical, manufacturing and distribution hub. EIA’s direct circumpolar access to and from Asian markets
Air Canada spreads its global network In 2019, Air Canada Cargo has been busy extending its network, adding capacity on European and South American routes. Vice president Tim Strauss says the new routes have been performing well and the airline has high hopes for the planned services. Toronto – Vienna services were opened in the spring and seasonal Montreal – Bordeaux flights have just started. In December, Toronto – Quito, Vancouver – Auckland and Montreal – Sao Paulo Guarulhos services will be launched. Strauss tells Air Cargo Week: “Vienna is a welcome addition as it provides additional, year-round capacity out of Europe and we’re happy with the route’s performance to date. Similarly, more capacity out of South America with Quito and the additional Sao Paulo route in December is also very positive and we anticipate a strong performance on these routes.” Business has been going well at Air Canada Cargo considering the global slowdown, with Strauss saying the airline is performing slightly better than the market, but in a much-weakened market. The cargo division continues to help Air Canada grow, strengthening already profitable routes or making the route viable. Strauss says: “For Air Canada, cargo plays an important role and we have a seat at the table for most route discussions and strategic decisions.” Canada is one of the largest countries in the world but also one of the least densely pop-
ulated, with much of the population in cities close to the US border. A significant number of people still live in the remote communities further north, and the logistics industry needs to serve their needs. Drones are an area of interest, and Strauss is on the advisory board of Drone Delivery Canada, a Toronto-based company developing drone deliveries for the Canadian market. Areas where drone services could be utilised include postal deliveries, medical supply distribution and e-commerce shipments. Strauss says: “We are moving quickly in some new areas of distribution including a commercial partnership with Drone Delivery Canada (incredibly exciting) and with a large scale move into Artificial Intelligence where Canada is the global leader. Likewise we are investing heavily in our logistics capabilities, facilities, technology and most importantly in talent development at every level of the organisation.” Doing business in Canada poses unique challenges, covering such a large area but with small populations. The extreme weather, varying between cold winters and hot summers can also make life interesting. Strauss comments: “Neither of these are game changers, it’s a matter of understanding how to work with those specific challenges and remain efficient. As for opportunities, Canada is ideally situated right next to the United States and lends itself easily as a transit point in international routings.”
and prime positioning as a gateway into North America and the Canadian North will allow Plant Box to scale successfully.” He is confident about the outlook for Canada, saying it is the only G7 country with trade agreements with all other G7 countries as well as with Asia, Europe and North America, simplifying the flow of goods and people. Tharakan says Alberta’s natural resources, technological capabilities and inter-modal transport makes it an attractive area. He says: “A lot of firms in the Edmonton Met-
Halifax snaps up tasty lobster market
Growth shows no signs of slowing down at Halifax Stanfield International Airport as demand for Nova Scotia seafood continues to increase. The airport operator, Halifax International Airport Authority tells Air Cargo Week that cargo volumes have increased consistently over the last five years, with 2018 growing 8.5%. The first half of 2019 was up over 20% compared to the same time last year. The airport expects 2019 to be an excellent year as demand for seafood, particularly lobster to Asia and Europe continues to grow. HIAA says: “Our number one export commodity remains seafood, primarily live lobster both by value and volume now contributing almost half a billion dollars to the provincial economy alone.” The busiest North American trade lanes continue to be Hamilton and Montreal served by Cargojet and FedEx, while Cargojet’s Boeing 767 services to Cologne, Germany is the main European route. Asia is of increasing importance. The airport says: “Demand for Nova Scotia lobster in China, in particular, has led to increased freighter flights leaving Halifax Stanfield, in addition to Korean Air Cargo who is flying multiple weekly B777 freighters into Incheon.” Between 20 and 25 freighters fly in and out of Halifax on any given week, primarily Boeing 747s, 757s, 767s and 777s. To accommodate future growth, construction of a new Air Cargo Logistics Park is set to start this year, and open in early 2021. The facility will enhance infrastructure, support the flow of goods and improve cargo handling, enhance trade, expand international capacity to foster exports and create jobs. This will help Halifax Stanfield cater for the predicted future demand for Nova Scotia sea-
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ropolitan Region are scaling for international growth, identifying new market opportunities to expand globally. The last few years have seen Canadian firms focused on increasing their global trade exposure, especially outside of North America.” Emerging global markets provide great opportunities for Edmonton. Tharakan says: “The growing wealth and middle-class in emerging countries are fuelling demand for the steady, safe and, sustainable food supply that Alberta provides with established agri-food cargo.”
food from Asia and Europe. The airport says: “Upon the completion of the Air Cargo Logistics Park, we’ll be fully equipped to handle the demand and allow us to strategically consider diversifying our product exports and share more of Nova Scotia with the rest of the world.” A country and region depend on a strong supply chain, and HIAA sees its role as an airport operator to facilitate growth and boost the economy. The airport says: “An effective and efficient cargo logistics chain is key. We can’t do this alone and value the relationships with stakeholders and customers in the industry.” A solid logistics chain will help the seafood keep flying out of Halifax. The airport says: “Our opportunity remains our seafood sector and strong demand in Asia. Our strategic geographic location on the East Coast of Canada, gives us the opportunity for more growth into Europe. Similar to Nova Scotia lobster, we can have our high-quality food shipped and served in a restaurant in Europe just a few hours later.”
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associations
One for all, all for one
Association: (Noun.From the Latin) A group of people (or businesses) united in an organisation because of their common interests for their mutal benefit.
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ccording to leading industry website and sister operation to Air Cargo Week, azfreight.com, there are some 130 airfreight associations currently in existence. They quickly divide into two tiers: the top tier of International Air Transport Association (IATA) and Miami-based The International Air Cargo Association (TIACA) as well as a second tier of country, region or city-based associations. In terms of airfreight, the first among equals of air cargo associations has to be TIACA. The organisation, based in Miami, is the only organisation to represent all segments of the airfreight supply chain on a global basis. A not-for-profit association, it supports, informs, and connects companies and organisations of all sizes with the aim of developing an efficient, modern, and unified air cargo industry worldwide. Launched in the early 1990s, its roots
go back to 1960, when a committee of the Society of Automotive Engineers in the US launched the first Air Cargo Forum to explore the needs of the then-emerging air cargo industry.
Second to none
A range of second-tier associations covers all sections of the air supply chain. These can remain entirely domestic operations or across national borders. One example of how an association can drive its members’ interests is the US Regional Air Cargo Carriers Association’s (RACCA). Two RACCA officials, John Hazlet and Bill Cush of Massachusetts-based Cape Air have been named as representatives on the new Part 135 Pilot Rest and Duty Time Rules Aviation Rulemaking Committee (ARC) tasked to take another stab at developing new rules after two previous efforts failed. The 20-member group will review current regulations and previous Rest and Duty Time rulemaking efforts and develop recommendations within 16 months. The ARC is in response to a Congressional mandate in the 2018 FAA reauthorisation and includes labour, safety experts and industry. Away from the domestic, on Friday, July 12, the first official meeting between the Air Cargo France Association (ACFA) and its Chinese coun-
terpart, China Air Transport Association (CATA), was held in France. The meeting reflected the “ACFA’s desire to develop cordial and enriching relationships with its European and non-European counterparts,” said the association. The morning, which was co-ordinated by the ADP Group, was divided into two phases: a general presentation of the cargo activity and infrastructures at CDG and Orly airports, then a visit by CATA to Paris CDG cargo city and the SODEXI express sorting centre. The meeting was concluded with the official signature of a “Minutes Of Meeting”, the last step before the signature of a “Memorandum Of Cooperation” which will be signed during the return visit to Beijing.
Equipment matters
A trade association of the ULD community, ULD CARE saw Menzies Aviation, the global aviation logistics specialist, become the latest signatory to its code of conduct, the aviation industry’s “gold standard benchmark for the safe and efficient operation of Unit Load Devices in flight cargo,” says the Montreal-based association. Established in 2018, and derived from the IATA ULD Regulations, the ULD CARE Code of Conduct sets the standard for all ULD handling and operations, ensuring that the industry has clear instructions and guidance for their safe and efficient operation. Urs Weisendanger, president of ULD CARE, said: “ULD Care is very pleased to welcome
Menzies Aviation, an industry giant and global leader in aviation freight as the latest signatory to our Code of Conduct, which shows just how important cargo safety is to everyone in the aviation industry.”
Name change after seven decades
For 70 years, the Baltic Air Charter Association (BACA) has focussed heavily on representing the interests of professional organisations and individuals working in the air charter industry with regulatory authorities and governments around the globe. With only two brand refreshes in those 70 years, its council has taken the opportunity to mark the 70th anniversary with a clear statement to the world of our purpose with the brand and identity change to ‘The Air Charter Association’. The new branding gives The Air Charter Association a much clearer identity to stakeholders and partners and will allow the council and management team to move forward on the many key issues facing the industry, particularly illegal charters, security, training and best practices. The new brand was officially launched by Nick Weston, chairman, at the Association’s 70th anniversary event held at the prestigious Institute of Directors in London’s Pall Mall at a special event on 4 July. The Air Charter Association’s aims remain closely aligned to its original motto, taken from the Baltic Exchange, “Our Word, Our Bond”.
Three busy years for NAP
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n informal association created in 2016 has reached over 250 members in just three years, notes Neutral Air Partners (NAP) CEO Christos Spyrou. Founded in 2016 in Hong Kong, NAP has a current membership in 90 countries and increasing steadily each year, with combined buying power to rival the large global operators. Spyrou explains: “Our original mission was to create a group of like-minded independent air cargo specialists, to create solutions including new technology and IT, to make the members competitive with the large forwarder groups worldwide. The SME (Small and Medium-sized Enterprise) forwarder market is immense and forms a vital force in the international air cargo
aircargoweek.com
industry, accounting for around 44% of the global market. “NAP and its members are developing technology and IT systems which improve efficiency and competitiveness, providing financial protection as well as training and workshops, for example the time critical meeting and workshop, to be held in Amsterdam in September. NAP claims to be the only specialist air cargo network that focuses on airfreight and express solutions, offering advantages to forwarders, consolidators, master loaders, GSAs, wholesalers, charter brokers, express and time critical companies as well as vertical and commodity experts.” The annual OPENAP conference is an opportunity to announce and launch new products and services and to interact with partners and vendors and also acquire extensive hands- on knowledge from the industry’s experts. For the first time, the 2019 conference in Mykonos gave members the opportunity to vote for their choice for outstanding performance in different sectors and regions, notes Spyrou. “The Neutral Air Partners network is constantly evolving, with new partnerships, products and services to assist members to work more efficiently and compete on a level playing field with the big multi-nationals. The SME market is immense and forms a vital force in this international air cargo industry. NAP also operates its own publications and media platform to assist members communicating with not only their colleagues but the global marketplace,” he says.
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he pretends to know what he’s talking about
Driving the Supreme Leader Supreme Leader of North Korea Kim Jong Un drives a $500k armoured Mercedes-Maybach S600 Guard. What role does airfreight play in sanctions-busting for this outcast nation?
report, Lux & Loaded, earlier this summer that showed how airfreight is used for the ‘last mile’ delivery of such luxury motorcars into the ostracised regime. In Lux & Loaded, C4ADS outlined how the Mercedes got from Europe to North Korea. The report’s author, Lucas Kuo, a senior analyst at C4ADS on the Counterproliferation Cell, showcased how it travelled from Rotterdam in the Netherlands to its destination in North Korea, transiting through China, Japan, South Korea and Russia. He says: “This report aims to provide a roadmap for law enforcement and civil regulators to implement a more targeted and effective sanctions campaign against the Kim regime’s core procurement networks.”
‘Dark’ voyage
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igh-end luxury goods share key features with dual-use goods for North Korea’s weapons programme: they are scarce, specialised products with high monetary value and of great symbolic importance for the Kim regime. However, unlike dual-use goods, luxury products like the armoured Mercedes are easily identifiable in publicly available trade records. North Korea acquires high-end luxury goods through the same overseas smuggling networks as other contraband. This means that detecting and seizing luxury goods could be a means to drive action against the Kim regime’s core procurement operations in other areas. Washington, DC-based policy group C4ADS published a 56-page
In February 2019, South Korean authorities detained the DN5505, a Togo-flagged cargo ship, for transporting North Korea-origin anthracite coal from the Russian Far East to South Korea after an extended ‘dark’ voyage. Open source investigation indicates that the same vessel had made a similar voyage in October 2018: after losing maritime signals for 18 days while sailing towards the Russian Far East, it returned to South Korea laden with 2,588 tonnes of anthracite coal. South Korean Customs records show that before its October dark voyage, the ship had left South Korea with two armoured Mercedes Benz vehicles, possibly the Mercedes-Maybach S600 Guard model. Three months later, the customised Mercedes-Maybach S600 Guard was spotted for the first time in Pyongyang carrying Kim to the Workers’ Party of Korea Central Committee building. Kim’s procurement of the Mercedes-Maybach S600 Guard is not surprising, say C4ADS. Kuo says: “Personal preferences aside, the vehicle’s numerous defensive features are designed to meet the needs of ‘heads of state and business leaders’ who are also likely to have the financial resources to acquire the vehicle valued at over $500,000. The Guard model includes heavy armour capable of withstanding ‘hardened steel core bullets fire from an assault rifle’ and an undisclosed amount of explosives. In an
effort to deter criminal actors from acquiring the vehicle, Mercedes reportedly runs a background check on potential buyers.”
Rotterdam
Cargo tracking information indicates that two containers were trucked into Rotterdam Port in the Netherlands in June 2018. Customs data show that the containers were then transhipped through Dalian, China and Osaka, Japan before arriving in Busan, South Korea, and that at no point after leaving Rotterdam were the containers opened for a possible change in cargo. Once the containers were loaded on the DN5505, the vessel departed Busan and set course for Nakhodka in the Russian Far East. She sailed north toward the Russian Far East on October 1, 2018. The vessel’s AIS (Automatic Identification System) signal disappeared while still in South Korean waters. On October 7, during the DN5505’s period of lost AIS transmission, three IL-76 freighters operated by Air Koryo, North Korea’s state-run airline, reportedly travelled from Pyongyang, North Korea to Vladivostok, Russia. Air Koryo’s IL-76s are known to transport the armoured vehicles used by Kim during foreign visits. They rarely appear in Vladivostok. The last and only publicly reported instance was on July 30, 2018, when three Air Koryo IL-76 cargo jets accompanied two other passenger planes to Vladivostok for unknown reasons. The North Korean consulate in Vladivostok reportedly did not provide an explanation for the unscheduled flights on October 7. Kuo says: “We have not uncovered direct evidence that the overlapping visits of the cargo jets and the DN5505 to the Russian Far East are related. “However, given the heavy lift cargo capacity of the planes and To read the full their role in transporting Kim Jong report, visit Un’s armoured limousines, it is poshttps://c4ads. sible that the cargo jets could have org/reports loaded the Mercedes.”
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