ACW 18th May 20 by Azura International

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The weekly newspaper for air cargo professionals No. 1,081

18 May 2020

Getulio Centanaro is a picture

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INSIDE TRAINING HEADS ONLINE

FROM June 1, the British International Freight Association (BIFA) is taking its comprehensive industry training programme ... PAGE 2

BUSINESS MODEL PAYS OFF

THE Deutsche Post DHL Group maintained its profitable growth trajectory in Q1 2020 despite the noticeable impact of the COVID-19 pandemic ...

Three Boeing Dreamlifters transport PPE to South Carolina THREE Boeing Dreamlifter aircraft were utilised to transport more than 150,000 protective eye goggles and face shields from China to the United States. Boeing worked in partnership with the Medical University of South Carolina (MUSC) to deliver the personal protective equipment (PPE) to frontline health care professionals in the MUSC system. “Today’s delivery puts essential personal protective equipment in the hands of South Carolina’s frontline health care professionals and helps MUSC further support the community during the COVID-19 pandemic,” said Boeing president and CEO Dave Calhoun.

“I am incredibly proud of our Boeing team members throughout the world for their work to help stop the spread of COVID-19 and thankful for our government and industry partners that have joined us in the pandemic response.” The MUSC Health team will support the revitalisation of the economy and ramp-up COVID-19 community outreach efforts, including diagnostic testing and antibody testing, across South Carolina. MUSC Health, under the guidance of the South Carolina Legislature and in partnership with South Carolina Department of Health and Environmental Control

(DHEC), has established mobile screening and collection sites in rural and underserved areas. The mobile setup allows health care providers to rotate sites, reaching people experiencing barriers to health care access for COVID-19 screening. Rural and underserved communities have experienced disparities in access to COVID-19 screening, testing, prevention and treatment in South Carolina and across the US. The MUSC Health team leading this effort were the first in the US to launch a combined virtual urgent care platform and drive-through specimen collection site.

PAGE 3 EGGSCELLENCE IN AIRFREIGHT

COVID-19 has devastated the globe and drastically reduced passenger flights on an international scale. Alongside this, a decrease ... PAGE 5

EMIRATES - 32 YEARS OF PROFIT

The Emirates Group announced its 32nd consecutive year of profit, against a drop in revenue from reduced operations during the ... PAGE 6

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Freight and logistics training heads online in virtual classrooms

FROM June 1, the British International Freight Association (BIFA) is taking its comprehensive industry training programme online, utilising web-based video conferencing. Director general, Robert Keen explains: “Once lockdown measures started, BIFA’s face-to-face training, which has received really positive feedback for its interactive nature, came to a halt. The question for us, was: How could we replicate that online? “Over the past month, our four-strong training team has been modifying the course content so that it can be delivered by video conferencing in a virtual classroom setting. “All the topics are short sessions, not designed to be delivered in one day, so they are very adaptable, which we think is more suitable for business. We could also tailor a package specifically for members, combining the different modules.”

El-Al’s prickly debut at Santo Domingo AS part of El Al Cargo’s recent strategy for cargo/pax movements a B787-900 passenger plane landed for the first-time ever in the capital of the Dominican Republic loaded with 25 tonnes of equipment for COVID-19, including masks and protection suits. The aircraft was met by the Israeli ambassador to the Dominican Republic Daniel Biran Bayor who was also present to wave goodbye to this historic landing on its return to Israel. The return flight was fully loaded with 41 tonnes of fresh pineapples harvested locally in the Dominican Republic which was arranged by cargo partner AIA Cargo – Aeroplus. AIA and Aeroplus arrange regular loads normally via EL AL US gateway of Miami prior to COVID-19 but this was a first for all to load directly.

Caribbean operates first cargo-only charter

Nine modules Initially, the online training programme will consist of 18 freight and customs-related topics spread over nine modules, with more subjects to be added in time. All of the interactive online training will feature live trainers with over 25 years freight and customs experience, and delegates will receive workbooks for each module. In 2019, BIFA’s freight and customs training activities continued to be popular and achieved a record number of courses, with BTEC course numbers, in particular, showing a four-fold increase, whilst 271 delegates achieved BTEC diplomas. Keen adds: “In order to keep up this success in training activities during the unprecedented COVID-19 crisis, we have made the decision to replicate almost our entire course range and deliver it via video conferencing. “The good news is that government guidance allows furloughed employees to engage in training. Furloughed employees should be encouraged to consider BIFA’s online training opportunities.”

SEKO distributes protective equipment to frontline staff EXEMPLIFYING a key pillar in its SEKO CARES campaign, SEKO Logistics has distributed over 28,000 face masks and over 138,000 gloves to frontline teams in North America during the coronavirus crisis. To ensure the health and welfare of SEKO’s consignees and shippers, they have also invested in additional MedTec Driver PPE kits to continue their support of the national and global medical relief effort with deliveries of medical devices, PPE and other related shipments into hospitals, clinics and temporary medical centres in major US cities.

All PPE kits were distributed to certified SEKO MedTec branches and over 50 different partner agents that perform White Glove deliveries. SEKO pledged a donation of more than $200,000 to purchase urgently needed PPE equipment for frontline workers treating patients whose lives are at risk from the spread of COVID-19. SEKO’s president and CEO, James Gagne, says the same commitment and application is being made to the company’s staff who are helping to “keep our clients’ businesses running.”

CARIBBEAN Airlines utilised one of its Boeing 737-800 passenger aircraft for a cargo only charter service, on Friday 8 May 2020, for the first time in the airline’s history. This flight was used to move essential supplies from Guyana to Cuba.The new service was introduced to serve islands experiencing reduced cargo capacity due the closure of borders due to COVID-19. The charter service operated under strict regulatory procedures. Marklan Moseley, general manager – Cargo and New Business, Caribbean Airlines said: “These are challenging times and we are sensitive to the need for trade and commerce to continue within the region. We are offering our charter services which supplements our current weekly scheduled freighter flights.”

Rhenus expands global abilities F through Scandi acquisition THE Rhenus Group, a leading international logistics service provider, has announced the acquisition of Scandinavian business Swedlink towards the end of 2019. The company joins the growing Rhenus network of more than 750 sites and 33,000 employees worldwide. The group has an annual turnover of €5.5 billion. With offices located in Stockholm and Malmö, Swedlink will continue to support its loyal customer base. The acquisition opens up greater opportunity for Rhenus services in freight transport across Western Europe, specifically in the Scandinavian market.

ACW 18 MAY 2020

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David Williams, road freight regional managing director North at Rhenus Group, commented: “The acquisition of Swedlink secures a long term relationship on the Swedish market and forms a base for further development. We are very pleased to welcome the team to Rhenus.“ On the acquisition, Claes Ostrander, CEO of Swedlink added: “Rhenus has been our largest partner for a number of years and, as a result, we already have a well-established relationship. We look forward to joining the Rhenus family and sharing our expertise in the Scandinavian market over the coming months.”

ollowing the recent launch of its network of cargo flights, Swiss WorldCargo will continue to fly to different global destinations as part of its cargo-only network. A new addition will be flights connecting Zurich and Mumbai. These flights will take place 3x weekly. Connecting the Indian economy to Switzerland, Europe and the world during this time remains “an important focus” for the airline despite these challenging circumstances.

Cargo jet charters on the rise

THE Covid-19 pandemic has changed aviation. From passenger to cargo transportation, demand is being met by new reliable players in the market. Kyle Patel from Palm Beach, Florida-based BitLux explains this new normality. He says: “Private aviation has increased its demand worldwide during Covid-19, operating repatriation, humanitarian and cargo flights around the globe. “Commercial air cargo has also suffered due to restrictions and closure of runways. The flexibility of private aviation has served as a lifeline for the transportation of goods worldwide, offering the capacity to land at almost any runway while delivering supplies of all sorts, from dangerous goods to valuable items. “BitLux has extensive experience with regional and international cargo charter, and precious handling cargo. We have worked with nearly everything – from manufacturing components to some of the world’s finest art. We’ve also used nearly everything, from regional propeller cargo aircraft to 767-300s for humanitarian relief, registering an increase of 40% in cargo charters during the first quarter of 2020 compared to the same period of last year.” Aircraft selection allows for great cost-efficiency. Why charter a large plane when you only need a turboprop to transport medication? Cargo charter companies have access to thousands of different aircraft and will always be able to source the ideal plane, while also sticking to requested budgetary constraints in a timely, efficient, and effective manner. Patel says: “Humanitarian missions transporting medication and medical supplies have also used private aircraft around the globe during the coronavirus outbreak. “Sometimes it’s the only way to reach isolated communities in need of treatment.”

THE Deutsche Post DHL Group maintained its profitable growth trajectory in Q1 2020 despite the noticeable impact of the Covid-19 pandemic. Revenue improved by 0.9% to €15.5 billion, and operating profit (EBIT) came in at €592 million. Adjusted for a pandemic-related negative earnings impact of €210 million as well as negative effects of €234 million incurred in the first quarter to realign the Group’s StreetScooter activities, operating profit stood at approximately €1 billion. This result came in around €200 million over the prior-year figure adjusted for non-recurring items. The Group has with this confirmed the preliminary quarterly figures published in April. “We are making an essential contribution to managing the crisis, with 550,000 employees in every country of the world and our unmatched global logistics

network. Our mission involves transporting protective equipment and medicines, securing industry supply chains and helping to deliver supplies to local populations. We are proud of our teams, who make the impossible possible every day. They also form the basis for Deutsche Post DHL Group performing so well in the first quarter, despite the challenges seen across the globe,” said Frank Appel, CEO of Deutsche Post DHL Group.

First-quarter profits All five divisions report first-quarter profits. Thanks to the Group’s extraordinarily broad geographic footprint and comprehensive portfolio of logistics solutions – ranging from international express services, global air and ocean freight transport to warehousing, e-commerce solu-

in the food and health care sector. Furthermore, thanks to its own fleet of cargo aircraft, Deutsche Post DHL Group proved to be one of the few providers in the world still able to transport urgent deliveries. “Thanks to our good balance sheet and liquidity situation, we were again able to invest almost half a billion Euros in the first quarter, despite Covid-19. We have thus strengthened our global network and prepared ourselves for further profitable growth in the future,” said Melanie Kreis, CFO of Deutsche Post DHL Group. DHL Express revenue improved by 4.5% to €4.2 billion. The availability of its own fleet of cargo aircraft proved to be a key factor for the division, allowing it to still offer urgent delivery to customers despite the virtual standstill in passenger flights.

tions as well as post and parcel solutions in Germany – Deutsche Post DHL Group is more robustly positioned than other companies and thus well situated to navigate crisis situations, says the company. Since the coronavirus began spreading around the world, various activities in the different regions performed better and worse than originally planned. “The crisis once again demonstrates the value of our broad and resilient portfolio,” said Appel. For example, while parcel volumes in the Post & Parcel Germany division increased significantly at the end of the quarter, letter mail registered pronounced declines. While the DHL divisions felt the effects of the standstill in many regions and customer industries, business in China experienced a recovery in March after the drop in February. Globally, the Group saw a strong increase especially

CSafe Global launches hub operations in São Paulo CSAFE Global, the innovation leader in temperature-controlled container solutions for the transport of life-enhancing pharmaceuticals, has once again expanded their global reach and local presence with the opening of a new hub operation in São Paulo, Brazil. This is its first in Brazil. “Pharmaceutical manufacturing has really taken off in Brazil in recent years and demand has spiked for our active containers to transport temperature-sensitive products,” explained Tom Weir, chief operating officer for CSafe Global. “With the growth we’ve seen, we need to have containers in the area for on-demand use which means setting up a hub operation where we

AA announces 140 weekly cargo flights to 15 international cities this month

AMERICAN Airlines has expanded its cargo schedule in May to provide 140 weekly flights to 15 cities in Asia Pacific, Europe and the Caribbean, up from 80 flights last week. New destinations include daily flights between Dallas-Fort Worth (DFW) and Hong Kong (HKG); and weekly flights from DFW and Beijing (PEK); DFW Chicago (ORD) and Paris (CDG); ORD and London Heathrow (LHR); Philadelphia (PHL) and Rome (FCO); PHL and San Juan (SJU), and PHL and Zurich (ZRH). “Cargo-only fights have allowed us to transport medical equipment, communications

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can have containers inspected, cleaned and released for usage. We’ve partnered with Quantum Logistics to make units available at the topof-the-line Multilog warehouse facility where we will have at least 600 sq m of space to store CSafe RKN and RAP containers. “Right now, we’re able to easily repair and maintain containers at service centres in other locations and then move them to customers or hubs as needed. However, should the demand grow to the point that it’s more efficient to repair the containers locally, we will certainly consider expanding the hub into a service centre staffed with highly-trained CSafe technicians to fully service and maintain our RKN and RAP container fleet for Latin America.”

and technology tools, pharmaceuticals and food supplies,” said Rick Elieson, President of Cargo and Vice President of International Operations. “Air cargo is uniquely positioned to connect the world at a time when barriers and distance threaten to separate us. “I’m immensely proud of our teams and business partners who have come together to make these flights possible.” American is a key player in the 35% of world trade that moves by air cargo. It carries around two billion pounds of goods annually in the bellies of its passenger aircraft.

thiopian Etihad Airways will operate a regular scheduled service from Melbourne to London Heathrow via Abu Dhabi, and from 21 May will also introduce services from London Heathrow to Melbourne via Abu Dhabi. The airline plans to maintain this link until it fully resumes its previous double daily connection between the two cities. These services complement Etihad’s schedule of special flights to and from several destinations on its global network Etihad continues to follow UAE and international government, regulatory and health directives to limit the spread of COVID-19..

ACW 18 MAY 2020

ANC receives prestigious US recognition for snow clearing SNOW removal crews at the Ted Stevens Anchorage International Airport (ANC) received the Balchen/Post Award, honourable mention, for excellence in the performance of airport snow and ice control from the American Association of Airport Executives for the 2019-2020 snow season. A selection committee of industry experts selected ANC as a top airport from amongst all large, snowbelt airports on the continent of North America. Jim Szczesniak, airport manager, said: “Our airline customers expect ANC to keep the airfield safe during the most challenging of conditions. “The ANC snow crews met the challenge and this award recognises them as among the world’s elite snow fighters.” ANC received 88.6 inches (225 cm) of snow this season, an above normal year.

atar Airways Cargo has introduced additional flights to and from Copenhagen, Oslo and Stockholm, offering freight capacity for local exports amidst the coronavirus pandemic. Five additional Airbus A350 freight-only passenger aircraft have been introduced each week to the carrier’s existing thrice-weekly belly-hold passenger flights at Copenhagen, bringing total weekly cargo capacity to more than 500 tonnes each way. With approximately 140 cubic metres volumetric weight on every A350 flight, the cargo carrier is helping Danish exporters ship their cargo to destinations on its global network. Temperature sensitive cargo and mail and general cargo are the main exports on these flights. Guillaume Halleux, chief officer cargo said: “Solidarity and support are paramount during such times and we are proud to support the

Scandinavian countries with additional cargo capacity to meet the high demand for exports. Although this global crisis may seem insurmountable, we must never forget we are all in this together and we will emerge stronger.” In Oslo, Norway, the airline has introduced two additional frequencies of Boeing 777 and Airbus A330 freighters to its existing six

weekly freighter flights and three freight only passenger flights. On a regular basis, Qatar Airways Cargo will add more freighters to and from Sweden, that will help support Scandinavia’s businesses to cater to the high export demand from other countries.

Short-term supply chain credit available from PayCargo Capital during COVID-19

ACW 18 MAY 2020

Qatar Airways Cargo ups Scandi capacity

ayCargo Capital, a sister company of online payment platform PayCargo, has seen a rise in demand for its shortterm credit facility during the COVID-19 pandemic. Transportation companies and cargo owners who are customers of PayCargo in North America can apply for credit of between $25,000 to $2,500,000 for a 15- to 30-day period. “The relevancy of PayCargo Capital has grown since the start of the COVID-19 pandemic, as managing cash flow and paying for daily transportation and related invoices can prove difficult,” said Philip Philliou, chief executive officer of PayCargo Capital. “Ocean shipping lines and cargo airlines have enormous amounts of capital tied up in artificial loans to customers.” The credit facility is being used by PayCargo customers from across the supply chain, to pay for ocean, airfreight, cross border freight, warehouse and Customs fees, and other transportation-related expenses.

More than 2,000 transportation-related vendors in North America accept payments via PayCargo’s online portal. “Freight costs, along with shipping routes, timetables, and specialised cargo handling are standard ways for shipping lines and airlines to differentiate themselves,” said Philliou. “Extending credit to customers has also been a common practice for transportation companies. “The extension of credit by the ocean shipping lines and airlines is often misunderstood and fraught with issues and costs.” Under the facility, PayCargo Capital pays all freight charges up front, reclaiming the appropriate funds electronically from the PayCargo customer in the agreed timeframe. PayCargo Capital customers receive all the expedited cargo-release benefits of PayCargo, while deferring their Vendor payments to better manage their cash flow and working capital. NETWORK Airline Management (NAM) and TAAG Angola Airlines have renewed their longterm freighter aircraft contract by an additional 12 months, sealing an ongoing partnership for the foreseeable future. Operating a regular weekly scheduled service from Liege to Luanda, NAM provides a Boeing 747-400F aircraft with nose-door capability which carries up to 120,000 kilos of cargo. “We are delighted to be renewing the contract once again, continuing our great partnership with TAAG. Network Airline Management has a track record of offering our customers the most cost-effective solutions and this service is no exception. We are able to provide the capacity to carry oversize cargo as well as pieces up to 20 metres in length,” says Andy Walters, NAM commercial director.

ANIMAL TRANSPORT

Eggscellence in airfreight A

OVID-19 has devastated the globe and drastically reduced passenger flights on an international scale. Alongside this, a decrease of cargo flights is noted, even though they are are still considered as essential businesses. The ARK at JFK – which originally opened and operated as an animal reception terminal and quarantine, bio-secure facility – is one ground-based operation that has suffered as a direct result of the grounding of much scheduled bellyhold and maindeck capacity. However, managemenmt at the JFK-based location are confident that the business is still providing an even more critical function now more than ever, when health and hygiene comes first and foremost.

especially when COVID-19 is anticipated to rebound in this autumn and winter. Since late February 2020, The ARK has been receiving medical eggs via weekly shipments. Some 2,000 to 3,000 eggs are handled in each shipment, which travel to pharmaceutical companies for drug/vaccine development. The ARK can handle these fragile eggs’ journeys from unloading at The ARK, breaking-down of pallets, re-configuring the shipment into appropriate cargo containers, cargo screening and delivery to either the aircraft or cargo terminals all with appropriate

temperature and environmental control, and processing – similar to the fragile process of animal transport. In addition to the medical eggs, The ARK is still doing the ground handling for the majority of animal transport at JFK, including for animal emergencies, especially with fewer staff available throughout the airport. The ARK takes animal shipments on and off aircraft; transports animals via their own climate-controlled equipment; transports animals to other airports including between JFK/EWR; pick up and deliver animals/pets

from individual homes; and more. What’s more, equine shipments in and out of JFK continue to be supported by The ARK, especially when USDA closed its quarantine facility in Rock Tavern, New York for three weeks. The ARK remained open and is fully functioning. The disruption in the supply chain due to COVID-19 certainly supports the consolidation of operations in a facility like The ARK.

How influenza vaccines are made

Medical eggs

n the United States, there are three different influenza (flu) vaccine production technologies approved by the US Food and Drug Administration (FDA). They are: egg-based flu vaccine, cell-based flu vaccine, and recombinant flu vaccine.

Most recently, The ARK at JFK expanded its business lines. In addition to its animal transport, during the time of COVID-19 it is working with the medical community – specifically handling medical eggs which are utilised in the development and manufacture of influenza (flu), MMR and other vaccines. Since the 1940s, much of the world has relied on chicken eggs for the production of influenza vaccines. About 164.5 million doses of the flu vaccine were distributed across the US this recent winter’s flu season, of which an estimated 82% were egg-based, according to the CDC. Drug companies are also reportedly increasing their production of the flu vaccine to prevent hospitals from being overwhelmed

All commercially available flu vaccines in the United States are made by private sector manufacturers. Different manufacturers use different production technologies, but all flu vaccines meet FDA safety and effectiveness requirements. Different vaccines have different indications.

Egg-based flu vaccines The most common way that flu vaccines are made is using an egg-based manufacturing process. Egg-based vaccine manufacturing is used to make both inactivated (killed) vaccine (usually called the “flu shot”) and live attenuated (weakened) vaccine (usually called the “nasal spray flu vaccine”). The egg-based production process begins with CDC (Centers for Disease Control and Prevention) or another laboratory partner in the WHO Global Influenza Surveillance and Response System providing private sector manufacturers with candidate vaccine viruses (CVVs) grown in eggs per current FDA regulatory requirements. These CVVs are then injected into fertilised hen’s eggs and incubated for several days to allow the viruses to replicate. The fluid containing virus is harvested from the eggs. For inactivated influenza vaccines, such as flu shots, the vaccine viruses are then inactivated (killed) and the virus antigen is purified. The manufacturing process continues with quality testing, filling and distribution. For the nasal spray flu vaccine (i.e., the live attenuated influenza vaccine – LAIV), the starting CVVs are live, but weakened viruses that go through a different production process. The FDA tests and approves all influenza vaccines prior to release and shipment. There are several different manufacturers that use this production technology to make flu vaccines for use in the United States. This production method requires large numbers of chicken eggs to produce vaccine and may take longer than other production methods.

In happier times ....

re-COVID-19, The Ark handled domestic and commercial animals from all over the world as they arrived and departed the United States.

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ACW 18 MAY 2020

IAG Cargo Q1 2020 financial results in double-digit fall

AG Cargo revealed Q1 2020 results, reporting commercial revenues of €246m over the period from January 1 to March 31, 2020, a decrease of 11.6% on the same period in 2019 at constant currency. Overall yield for Q1 was up 4.8% when compared to the same time last year at constant currency. Sold tonnes were down 14.9% and CTK volumes were down 15.7% whilst capacity declined by 13.8%. Lynne Embleton, CEO at IAG Cargo, commented: “The airfreight market conditions during Q1 were dominated by the impact of COVID-19. “In January and early February our performance was solid; Europe and Latin America were stable, there was a noted dynamism in North America where our premium products were performing strongly and the Asia Pacific

region showed promise for the year ahead. “However, like many global businesses with an active Chinese market, IAG Cargo felt the impact of the COVID-19 pandemic early. The expected dip in activity around Chinese New Year was followed by a prolonged drop in manufacturing which continued throughout February and March as the Corona outbreak took hold. This saw our APAC & Middle East business affected the most with a 19.2% revenue decline versus the same period last year. “When large numbers of passenger flights were suspended, IAG Cargo took immediate steps to provide creative solutions for our customers. We adapted quickly and we were one of the first airline groups to announce scheduled cargo-only flights using passenger aircraft. In doing so we have kept routes around the world open to cargo.”

Emirates Group’s 201920 results – 32 years of profit

he Emirates Group announced its 32nd consecutive year of profit, against a drop in revenue from reduced operations during the planned DXB runway closure in Q1 2020, and the impact of flight and travel restrictions due to the COVID-19 pandemic in the fourth quarter. The Emirates Group posted a profit of AED 1.7 billion ($456 million) for FY ended 31 March 2020, down 28% from last year. The Group’s revenue reached AED 104.0 billion ($28.3 billion), a decline of 5% over last year’s results. The Group’s cash balance was AED 25.6 billion ($7.0 billion), up 15% from last year mainly due to a strong business performance up to February 2020 and lower fuel cost compared to the previous year. Due to the unprecedented business environment from the ongoing pandemic, and to protect the Group’s liquidity position, the Group has not declared a dividend for this financial year after last year’s dividend of AED 500 million ($136 million) to the Investment Corporation of Dubai. HH Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive, Emirates Airline and Group, said: “For the first 11 months of 201920, Emirates and dnata were performing strongly, and we were on track to deliver against our business targets. “However, from mid-February things changed

rapidly as the COVID-19 pandemic swept across the world, causing a sudden and tremendous drop in demand for international air travel as countries closed their borders and imposed stringent travel restrictions. “Even without a pandemic, our industry has always been vulnerable to a multitude of external factors. In 2019-20, the further strengthening of the US dollar against major currencies eroded our profits to the tune of AED 1.0 billion, global airfreight demand remained soft for most of the year, and competition intensified in our key markets. “Despite the challenges, Emirates and dnata delivered our 32nd consecutive year of profit, due to healthy demand for our award-winning products and services, particularly in the second and third quarters of the year, combined with lower average fuel prices over the year. In 2019-20, the Group collectively invested AED 11.7 billion ($3.2 billion) in new aircraft and equipment, the acquisition of companies, modern facilities, the latest technologies, and employee initiatives, down from last year’s record investment of AED 14.6 billion ($3.9 billion). At the 2019 Dubai Air Show in November, Emirates placed a $16 billion order for 50 A350 XWBs, and a $8.8 billion order for 30 Boeing 787 Dreamliner aircraft.

Agility JV to procure vital COVID supplies, deploy testing units

gility, a leading global logistics provider, has launched Global Response Aid (GRA), a Dubai-based company to procure certified diagnostic, testing and protective products and offer services such as a contact-tracing app and mobile testing for detection, treatment and prevention of COVID-19. GRA works directly with trusted manufacturers to source safe, effective products for governments, health authorities and public institutions; frontline medical facilities such as hospitals, clinics and non-government organisations involved in the COVID-19 fight.

ACW 18 MAY 2020

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GRA-sourced products include top-quality ventilators, thermal detection equipment, protective suits, cleaning and sanitation supplies, and new point-of-care test kits. A mobile phone app developed by GRA helps stop the spread of the virus through community-driven contact tracing and alerts. The app offers users the ability to record, time stamp, and geo-reference test results. GRA also is deploying Mobile Diagnostic Testing Vehicles and trained teams that can perform COVID-19 testing safely on site at schools and workplaces.

Cargo in the time of the ‘preighter’ F

or April as a whole, volumes declined 39% year-on-year, but an even greater capacity drop of 45% highlighted the current shortage of air cargo capacity, according to the latest industry intelligence from CLIVE Data Services. Its first-to-market week-by-week data shows air cargo volumes stabilised from mid-March to mid-April and became ‘less bad’ during the most recent two weeks to May 3, 2020. CLIVE’s air cargo market data bears out the sentiment expressed by economists from Morgan Stanley and Goldman Sachs in reports on May 3 and 4 respectively, with Goldman Sachs stating: “A number of the high-frequency indicators we track suggest that the global economy is in the process of bottoming out.”

Dynamic load factor CLIVE’s ‘dynamic load factor’ for April of 67%, based on both the volume and weight perspectives of cargo flown and capacity available, shows an increase of 4% points versus April 2019, reflecting pressure on capacity. “Until very recently, many airlines would have bumped cargo without blinking an eye, to accommodate the luggage of their passengers. These same airlines are now removing seats from these same planes to create more space for cargo. The uniqueness of this situation is reflected in the new term ‘preighter’ in the air cargo vocabulary, coined by Lufthansa Cargo. April 2020 was also unique. With a decline of 39% in volumes versus

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USA

based on the fact that airlines’ cargo capacity nearly always ‘cube out’ before they ‘weigh out’ as a result of an aircraft’s higher capacity density (available kgs per cubic metre) than the average density of the goods moved by air. Consequently, CLIVE says, traditional load factors, based only on weight, underestimate how full aircraft really are, and thus give a distorted picture of how the industry really is performing. He added: “For all cargo staff around the world that have been put on furlough, know that their temporary contract will not be extended or simply have been fired as companies move to cut costs, the word ‘recovery’ will be hard to swallow.”

TRADEFINDER Industry Events

United Arab Emirates

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April 2019, it must be one of the worst months in air cargo’s history. “But a greater fall in capacity, mixed in with the urgent need for PPE materials by governments around the world, explains also why current air cargo yields have reportedly gone through the roof,” commented CLIVE’s managing director, Niall van de Wouw. “Although it is too early to tell if we are seeing the very earliest signs of the road-to-recovery, the most recent trend, coupled with the views of leading global economists, might give us hope. Could it be that the worst is behind us?” said van de Wouw. CLIVE’s ‘dynamic load factor’ analysis refreshes the way air cargo capacity usage is traditionally measured to reflect modern day reality. It is

ACW 18 may 2020

7 13/05/2020 12:52

Cargo in the blood

Audrey Serdjebi, founder & CEO, Lemon Queen

till in lockdown. Every day I hear about the economic damage caused by this global crisis. Every day, friends from this industry lose their jobs. But I want to keep my hopes up – and this column helps me do just that. All over the world, talented people are fighting to make sure cargo can carry on. It’s clear that their passion for freight and their unbelievable energy will be the industry’s saving grace – and without a shadow of a doubt, Getulio Centanaro, sales director at AeroMexico Cargo, is one of those talented people. The first time I met Getulio, his reputation preceded him. He had just joined AeroMexico Cargo as sales director, and I’d heard people talk about his youth, his rigorous approach, and his hunger for excellence. A talented figure who, like the rest of the newly formed management team, was extremely comfortable with digital technology, the new Business Intelligence tools and the entire cargo digital factory needed at a major airline. And then I met him in real life. I was totally won over by his personality. An easy smile, a sparkling gaze and unbridled energy. “I was born and raised in Colombia, and when I was a kid, I developed a great interest in travelling and languages, which eventually led me to go abroad on academic exchanges in different countries in Europe and the Americas, giving me the opportunity to meet extraordinary people and encounter different ways of living,” he told me. That must be why Getulio loves meeting people. “Ever since I was in high school, I’ve had an interest in learning new cultures and people” – and so it was only natural that Getulio, as a people person, chose cargo: “I wanted to combine my passion for discovering the world with my organizational skills, and then I came across the logistics and supply chain.” Getulio has now been in his role for 11 months. “I oversee the global commercial cargo activity through our own offices and selected GSAs in Europe, Asia, and North, Central and South America.” While he believes that “cargo is what keeps us moving”, Getulio adds, “I became fascinated with the way you can communicate by delivering goods and services worldwide and connecting the world through transportation.” I have to admit – and it’s something that’s very personal – I’m a huge fan of the airline’s commitment to communication. And while AeroMexico often shares its love of people, its cargo division is also driven by the same passion – and a crisis reveals people’s true nature.

Cargo and Other Stories by Lemon Queen “My biggest inspiration is continuing to support my local community through these difficult times, providing certainty and reassurance to people that we will do our best for them, to continue transporting what they need, and for that, I feel thankful that I can contribute to this global effort,” he told me. And at the heart of this unprecedented crisis, Getulio reaffirms that “it is the most rewarding result, that AeroMexico and our sector can help thousands of people get better, and that our operations are more than goods or supplies – they mean hope.” But loving thy neighbour isn’t enough. To take action, you need courage, tenacity and organisation. And more than anything else, you have to be adaptable. Getulio and his team at the cargo division are the embodiment of this capacity for resilience: “As for AeroMexico Cargo, we have been a key player in responding to this event. Our airfreight division has worked hard to operate exclusive cargo charter flights for the first time in the history of the airline. And as such we have been working tirelessly to ensure the safety of our clients and employees – this is our main goal.” The airline has made a significant contribution to its country’s PPE supplies. But it does so with an elegance that deserves recognition. “We have also been shipping medical supplies and other goods and supporting the Mexican Government by transporting medical equipment from China at zero profits.” And because a good deed is even better when it’s repeated: “We have also been helping the Mexican Red Cross to ship medical equipment to 14 Mexican cities.” And all this from lockdown. For obvious reasons of ensuring employees’ and clients’ safety, 100% of the administrative team is working from home. So Getulio loves meeting people, but he also likes not sleeping to ensure the survival of the Cargo activity – and indirectly the survival of our industry. And this crisis has only strengthened his passion for cargo: “Since this event impacted us globally, my definition of cargo has changed to something we all need, that keeps us together, regardless where it comes from and where it heads to.” But once again, Getulio puts people at the heart of his vision of cargo: “Now more than ever, I realize how dependent we are on one another. I believe everyone is now becoming aware of the importance of well-planned logistics.” I like this mindset, this liveliness and this team spirit that exists on an international level. It’s clear that AeroMexico’s cargo division has fully taken the new rules of a changing industry on board.

Lemon Queen is an airfreight industry public relations and communications agency in Paris, France

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