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The weekly newspaper for air cargo professionals No. 1,010
3 December 2018
Dogs who smell trouble Turkish Cargo orders more 777Fs
Brandon Fried on Capitol Hill’s approval
Pages 9-11
INSIDE GO NUTS FOR SEASONAL TREATS
AMERICAN Airlines Cargo has been carrying more than 10 tonnes of sweet chestnuts a day between Rome and New York to help US customers enjoy ... PAGE 4
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urkish Cargo has ordered three more Boeing 777 Freighters as it continues to soar with record financial results and growth. The 777 Freighter, which is based on the 777-200LR, can fly 4,900 nautical miles with a payload of 102 tonnes, meaning fewer stops and landing fees, less congestion at transfer hubs, lower cargo handling costs and shorter delivery times. Turkish Airlines chairman of the board and the executive committee, Ilker Ayci says: “We are excited to expand our efficient cargo fleet with
the 777 Freighter. This aircraft has contributed greatly to Turkish Cargo, Turkish Airlines’ successful sub brand, becoming the fastest-growing air cargo carrier in the world. The additional aircraft will provide us more flexibility to serve even more destinations as we continue to grow our global freight network.” The news comes after Turkish Airlines reported a 25 per cent increase in tonnage and revenue growing by 29 per cent. The airline has been investing heavily in its fleet by ordering three 777Fs in January, finalising a deal for 25 787-9 Dreamliners in March and
taking delivery of Boeing 737 MAXs. Boeing Commercial Airplanes president and chief executive officer, Kevin McAllister says: “Turkish Airlines has achieved significant success over the past decade. In addition to introducing innovations that have powered the growth of Turkey’s commercial aviation sector and anchored a new state-of-the art airport, the airline is delivering outstanding results and rising in the ranks of elite airlines. We are extremely honoured that Turkish Airlines has placed its trust and confidence in Boeing’s flagship airplanes: the 737 MAX, the 777 and the 787 Dreamliner.”
Pilots take complaints to DHL headquarters Pilots contracted to fly for DHL from Atlas Air and Southern Air, as well as ABX Air picketed outside DHL’s US headquarters in Plantation, Florida on 28 November. The pilots marched outside the German-owned company’s US headquarters with signs reading “DHL Driving Down Living Standards for US Pilots”. They accuse Atlas, Southern and ABX of stalling negotiations to improve their contracts, arguing that they can attract a sufficient number of pilots at current wages, terms and benefits that are below industry norms. The pilots say that this tactic is not working and is impeding the long-term success of customers including DHL. As reported in Air Cargo Week’s 26 November issue, a survey of pilots revealed that more than 75 per cent of those who responded strongly disagree that management is telling customers and the public the truth about the problems they are facing. More than 60 per cent of respondents are preparing to leave for work at competitors including UPS and FedEx.
STRAUSS JOINS DRONE BOARD
AIR Canada’s vice president of cargo, Tim Strauss has joined Drone Delivery Canada’s advisory board to help the company execute its commercial ... PAGE 7 PROPER PLANNING FOR AID
WHEN helping to deal with a humanitarian crisis, proper planning and communication are vital to ensure airports can cope and aid can reach those ... PAGE 8
EXCITING TIMES FOR GSSAS
WITH more than 69 subsidiaries and 147 offices spanning more than 47 countries, Paris-based ECS Group must maintain a corporate esprit de corp .... PAGE 12
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Lufthansa signs strategic deal with China Post
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ufthansa Cargo and China Post have signed a strategic cooperation, with the scope for cargo capacity of one Boeing 777 Freighter a week between Shanghai and Frankfurt. The two companies aim for further agreements and have been working together at other major Chinese stations, with a focus on Beijing and Guangzhou. In addition to capacity, both companies are jointly working on shortening transportation times, improving quality and developing digitalisation. China Post Group Corporation vice president, Li Xiong met with Lufthansa Cargo chief executive officer and chairman of the executive board, Peter Gerber in Beijing to sign the deal. Li says: “In recent years, the cooperation between China Post and Lufthansa Cargo has enjoyed a constant growth. The e-commerce business is in a vigorous development. Both China Post and Lufthansa Cargo are now upgrading and innovating the business model. “Under the concept of the “Joint Freight Operation”, the two sides have reached a further consensus on capacity agreement this time. We will jointly build a more stabilised and comprehensive channel of airmail transportation connecting China and Europe.”
Gerber says: “We are very pleased that the excellent collaboration with China Post, which has been going on for many years, is now even gaining new quality within the framework of a strategic cooperation. It also reflects the growing importance of the cross border e-commerce market. Together, we will be able to achieve even more for our joint customers on one of the world’s most important trade lanes.”
Longhao Airlines receives first 737-400F
VALLAIR has delivered the first Boeing 737400 Freighter to Guangdong Longhao Aviation Group, to be operated by Guangzhou-based Longhao Airlines. The aircraft, MSN27916 was previously operated by Japan Transocean Airlines and converted at Gameco in Guangzhou under a Pemco supplemental type certificate (STC).
The group operates 737-300Fs using its own fleet as well as leased aircraft, operating freight services on domestic and international sectors including Hong Kong, Macau and Taiwan. Longhao Airlines was established by Guangdong Longhao Aviation Group with a registered capital of $61.6 million, launching operations in March 2017 with services between Guangzhou and Nantong. The aircraft is one of a number of 737s purchased by Vallair for cargo conversion, and the first 737-400 to be converted at Gameco’s facility. Vallair head of cargo conversions, Peter Koster adds: “As these mature aircraft come to the end of their operational lease agreements we are extending the life of these assets in the most economically beneficial way through our cost-effective conversion programme.”
ACW ON THIS DAY
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Hush now for European airports
Vol 2 Issue 48 6 December 1999 EUROPE’S airports have come out in support of an EU ban on aircraft fitted with hush-kits. The law, designed to cut noise pollution around congested European airports, is due to come force in May 2000. It would ban the use of hush-kitted aircraft from outside the EU which are are not already in use in EU states. The legislation is strongly opposed by the US. Brussels argues that hush-kits do not sufficently reduce aircraft noise and serve to extend the life of obsolete, polluting aircraft. These should be grounded. The counterclaim is that such a ban discriminates against US carriers. NORTHWEST ADDS 10TH B747F TO ITS FLEET NORTHWEST Airlines Cargo has added a 10th B747-200 Freighter to its growing fleet of aircraft. “The freighter will support additional frequencies to and from Hong Kong, Taipei, Shanghai, Chicago and san Francisco,” said Mickey Floret, president of cargo at Northwest Airlines.
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Go nuts for seasonal treats
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merican Airlines Cargo has been carrying more than 10 tonnes of sweet chestnuts a day between Rome and New York to help US customers enjoy Thanksgiving and Christmas. Used in the preparation of soups, desserts, flours and creams, the chestnuts originate in the Campania region of Italy, around Naples. They are harvested in the mountains and placed into jute sacks before being delivered to American Airlines Cargo’s facility in Rome. The jute sacks are fixed onto wooden pallets and need to be kept away from direct sunlight while in transit before being loaded onto American’s daily Boeing 777-200 flights from Rome Fiumicino to New York JFK. The seasonal traffic usually only occurs for a couple of weeks in mid-October but with the growing demand, this year’s season has already been running for six weeks. American Airlines Cargo sales manager, Rich-
ard Hartmann says: “Whether its chestnuts roasting on the streets of New York or families preparing a traditional stuffing to accompany their Turkey at Thanksgiving or Christmas, our team in Italy has worked hard with our shipper and forwarder partners to deliver record tonnages of chestnuts this year.”
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Emirates flight stops a nation EMIRATES SkyCargo has transported threeyear-old horse Cross Counter to Dubai having won the 158th edition of the Melbourne Cup, Australia’s biggest horse racing event. Following the event, commonly referred to as the race that stops a nation, Emirates SkyCargo transported the champion horse from Melbourne to Dubai on board a Boeing 777 Freighter on 11 November. Cross Counter flew along side seven other horses from the Godolphin stables – Folkswood, Benbati, Blair House, Emotionless, Comicas, Best Solution and Prize Money. Emirates divisional vice president for cargo, Nabil Sultan says: “We give the highest level attention to detail for the welfare of the horses and strive to create a peaceful and comfortable ambience on our flights allowing the equine champions to hit the ground running.” Godolphin trainer, Charlie Appleby says:
“Cross Counter is now back home in Dubai, following a smooth journey from Australia, where he’ll enjoy a well-deserved rest. Thank you to all of the team at Emirates SkyCargo for their care and attention in transporting our equine stars around the world.” Emirates SkyCargo has developed Emirates Equine, a specialist service for horses to ensure they travel in an environment designed to maximise comfort and safety.
CEVA merges clusters
Sauzedde GUILLAUME Sauzedde has taken up the newly created role at CEVA Logistics of managing director for Germany and Eastern & Central Europe. By creating a single cluster under Sauzedde’s leadership, CEVA aims to accelerate growth in contract logistics, air, ocean and ground freight management. The management team in Germany and Central & Eastern Europe will report to Sauzedde, who takes on the duties of Christian Wurst who is leaving CEVA at the end of the month. Sauzedde joined CEVA in October from Kuehne + Nagel Poland where he was responsible for all business lines. He has more than 20 years of logistics industry experience, and strong market knowledge in both Germany and Eastern Europe. CEVA Logistics CEO, Xavier Urbain says: “I am delighted to announce this new role for Guillaume. I would also like to thank Christian Wurst for his work during his time with CEVA. He hands over a well-positioned organisation ready for future growth.” Sauzedde took over the expanded cluster on 30 November and continues to report directly to Urbain.
va-Q-tec comes to Singapore VA-Q-TEC has expanded its global footprint in Asia Pacific with the establishment of an entity in Singapore. Singapore is a central logistics hub with a modern airport and infrastructure, and home to more than 30 pharmaceutical technology firms with offices and manufacturing plants.
Quote of the week “I’m not going to lie, it’s no mean feat.” ECS Group CEO Adrien Thominet on how he maintains esprit de corps in his major, fast-growing worldwide GSA group.
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Mega moo-ve for ABC
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irBridgeCargo Airlines (ABC) and Intradco Global have flown 200 breeding cattle to Russia’s Far East to help populate farms across the region. The charter flight travelled from Amsterdam Airport Schiphol to Yuzhno Sakhalinsk, where the arrival was warmly greeted by the region’s farming community. The cows, weighing 500 kilogrammes each, flew onboard a Boeing 747-8 Freighter in a carefully maintained temperature environment to ensure their comfort and well-being. Intradco Global project manager, Tom Lamb says: “This represents one of the largest single shipments of dairy cattle Intradco Global has ever coordinated. We would like to thank AirBridgeCargo for their expertise in operating the charter.
“Like human passengers, animals are now getting a quieter and smoother flight experience thanks to the availability of new-generation freighters like ABC’s Boeing 747-8F fleet. This means our customers have more choices than ever for international shipments.” ABC general director, Sergey Lazarev says: “We are proud to have been entrusted with supporting the development of the agricultural sector of the Russian Far East. So far in 2018, we have safely delivered various breeds of cattle weighing more than 450 tonnes to the region onboard four charter flights. “The operational capabilities of our modern Boeing 747 freighter fleet, alongside our specialist ‘abc Сare’ services and our expertise in serving the Russian market, makes AirBridgeCargo the best choice as a long-term partner for the transportation of live animals by air.”
Lion flight is a roaring success
INTRADCO Global and Turkish Cargo have transported four lions to South Africa, saving them from a bleak future as part of a travelling circus. Born into captivity in a travelling circus and kept in cramped conditions, twin sisters Charlie and Kai, 4, and younger sister Luca, 3, were facing a bleak future until the Lawrence Anthony Earth Organisation intervened. A one-year-old male cub named Nathan was also saved, having been kept caged in unsanitary conditions by a trainer who planned to sell him as a performing animal. Once rescued, the lions were put in a temporary enclosure until they could be moved to the Kragga Kamma Game Park, a coastal forest and grassland expanse where the animals can roam freely. The four lions travelled in the lower deck of an Airbus A330 passenger aircraft from Kiev, Ukraine to Istanbul, Turkey where they were transferred to a second aircraft for their onward journey to Johannesburg. They were transported in custom designed pallets containing food and water, and ac-
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companied on the flight by a vet, a specialist handler and a representative from the Lawrence Anthony team. Intradco worked closely with the Lawrence Anthony team to ensure all permits and certifications were in place for the shipment including valid CITES documentation (Convention on International Trade in Endangered Species). Intradco project manager, Dane Riecker says: “We’re delighted to have been of assistance to Charlie, Kai, Luca, and Nathan, and we hope they enjoy their new home. Logistics projects of this kind always require careful planning, and we would like to thank Turkish Cargo and the other parties involved for working around the needs of these VIP passengers.” Lawrence Anthony Earth Organisation Ukraine CEO, Lionel de Lange thanked Intradco for their work, saying: “It’s been great to work with them. Their team looked at the various options and found the best route with the shortest travel from Ukraine, from Kiev to Johannesburg. As and when we do this again, Intradco will be the first people I call.”
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Avianca Cargo touches down at Brussels Airport
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vianca Cargo made its maiden voyage between Europe and South America on 18 November with direct flights to Brussels Airport. The Airbus A330-200F services will offer customers an extended network in Europe. The flights to Brussels will provide connections to Amsterdam flower auctions, the main operation and consolidation centre for the flower industry in Europe. Avianca Cargo executive vice president of business units, Gerardo Grajales says: “The main purpose of this operation is to continue supporting the expansion of the flower industry and other perishable products in Latin America, as well as to offer a cargo transportation service to our customers in Europe and Asia to Latin America.” Brussels Airport head of cargo and logistics, Steven Polmans says South America is an underserved market, saying: “We are really pleased to welcome Avianca Cargo and the opportunity we can offer to our market with increased connectivity and capacity for pharmaceuticals, automotive and other commodities from our region to Miami, Colombia and the rest of South America.”
WFS to handle cargo for Lufthansa at Schiphol WORLDWIDE Flight Services (WFS) will start handling cargo for Lufthansa Cargo at Amsterdam Airport Schiphol on 1 February 2019. The new contract will see WFS handle around 30,000 tonnes per annum, serving the airline’s trucked and flown volumes. WFS already handles over 220,000 tonnes per annum for 70 airline customers at Schiphol, and expects to see further expansion of its operations in 2019. WFS general manager in Amsterdam, Stephane Scholving says: “Winning such a prestigious new customer as Lufthansa Cargo is another significant boost to our growing cargo handling operations in Amsterdam. “In awarding this contract to WFS, Lufthansa has clearly recognised that we share the airline’s
high-level commitment to quality, safety and security. We look forward to building a long-term partnership with the airline at one of its major European stations.”
Norwegian expands in the Americas NORWEGIAN will be extending its Americas network with flights to Miami and Rio de Janeiro, both launched on 31 March 2019. The flights from London’s Gatwick Airport to Rio’s Galeao International Airport will operate on Mondays, Wednesdays, Fridays and Sundays using a Boeing 787-9 Dreamliner. On the same day, Norwegian will connect Gatwick with Miami, using 787s on the daily service. Norwegian founder and chief executive officer, Bjorn Kjos says: “South Florida is one of our most important markets in the US and by moving our London service to Miami, we will become even more competitive while we will
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also have access to many more opportunities, including cargo.” These services add to flights to Buenos Aires, Argentina, which were launched on 14 February this year. Norwegian also started operating domestic services within Argentina from October, with flights operating from Buenos Aires to Cordoba, Mendoza, Iguazu, Bariloche, Salta and Neuquen.
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Airbus makes COO and CFO appointments
Tim Strauss joins Drone Delivery Canada board
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ir Canada’s vice president of cargo, Tim Strauss has joined Drone Delivery Canada’s advisory board to help the company execute its commercial strategy. Strauss has 31 years of air cargo experience in both the airline and freight forwarding industries, having held leadership roles in global sales and operations at Northwest Airlines, Delta Air Lines and Hawaiian Airlines. Drone Delivery chief executive officer, Tony Di Benedetto says: “We are very pleased to have Tim join our team. I have had the pleasure of knowing Tim for quite some time and his forward-thinking vision of logistics and solid industry experience are true assets for the Company in implementing our commercialisation strategy in Canada and abroad.” Strauss says: “I am delighted to join Drone Delivery Canada’s Advisory Board. Tony and the
staff at DDC are in the unique position of introducing world leading technology and a totally new approach to the distribution of goods across Canada and beyond.”
FARRELL JOINS VATRY
MARCUS Farrell has joined the board of directors of Paris-Vatry Airport as head of operations, bringing with him considerable aviation industry experience. In his career he has worked in Dublin and then at Star Airlines in Paris before Air France’s Operations Control Centre where he held operations duty manager, training and operations support positions. Paris-Vatry says his appointment is part of the airport’s passenger and cargo development plan.
AIRBUS has appointed Michael Schollhorn to take up the role of chief operating officer (COO) for commercial aircraft and Dominik Asam will join as chief financial officer (CFO). Schollhorn, who is COO for BSH Home Appliances in Munich, will take up his role in February 2019, succeeding Tom Williams who retires on 31 December 2018. The 54-year-old will report to Guillaume Faury who succeeds Tom Enders as CEO. He will also become a member of the Airbus Executive Committee. Enders says: “We are glad to welcome Michael, and we bid farewell to Tom, a great personality and leader both in Airbus and the wider European aerospace industry for many years. Tom braved countless challenges during his time with Airbus, always overcoming them in the best interest of the company and its customers, and never losing his dry Scottish humour.” Schollhorn holds a degree in mechanical engineering and a PhD in Control Engineering from the Helmut Schmidt University in Hamburg, and served in the German Armed Forces as a helicopter pilot and officer from 1984 to 1994. Asam will succeed Harald Wilhelm as chief financial officer, leaving his role at Munich-based Infineon Technologies to join Airbus on 1 April 2019. Wilhelm will remain in his role until the AGM on 10 April 2019. Asam will also report to Faury and become a member of the Airbus Executive Committee. Faury says: “I am very much looking forward to working with Dominik to continue improving our company’s financial performance. A finance expert with an engineering and wide industrial
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New broom: Michael Schollhorn is new COO
New broom: Dominik Asam joins as CFO
background is a great choice for this mission.” Asam graduated from the Technical University of Munich in 1994 with a degree in Mechanical Engineering, and began his professional career in 1996 in the Investment Banking Division of Goldman Sachs with postings in Frankfurt, London and New York.
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Proper planning helps aid reach those who need it
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hen helping to deal with a humanitarian crisis, proper planning and communication are vital to ensure airports can cope and aid can reach those in need. Air Partner has assisted with a number projects including missions to Libya, Yemen and Central Africa, as well as various African countries. In the aftermath of Typhoons Mangkhut and Yutu, a number of charter flights went from the US to Guam and Saipan in the Mariana Islands. A major factor is the operational capability of destination airports, including the feasibility to offload cargo. When delivering aid to victims of Typhoon Haiyan in the Philippines, Air Partner delivered a main deck loader in an Antonov AN-124 to offload cargo from subsequent aircraft. Air Partner director of freight, Mike Hill says: “Congestion always creates a landing slot problem – this Hill was a particularly severe issue in
Kathmandu after the Nepal earthquake in 2015. When smaller airports like this are suddenly faced with huge numbers of flights, the damaged infrastructure is overstretched and so aircraft num-
bers need to be limited.” Fuel shortages can quickly become a problem, so operators often have to arrive with enough fuel for the return journey, as there is no guarantee they will be able to refill at the destination. Hill says: “Our Ops24 team in London Gatwick monitors the situation on the ground for every charter we arrange, and we usually have a member of staff out on the ground too so that we can react quickly to any unforeseen issues that may arise.” Humanitarian aid missions are always challenging, but Air Partner cites flying cargo to the Mariana Islands after Typhoon Yutu as being particularly difficult due to the size of the relief effort, the volume of flying and nature of the goods. Despite the challenges, the aid will get through, and Air Partner was not going to be defeated. Hill says: “On account of the urgent and critical nature of these operations, we stationed a member of the Air Partner team on the island of Guam to co-ordinate the organisation and delivery of all cargo from the appointed freight forwarder of the Federal Emergency Management Agency (FEMA), as well as manage all aircraft loading and operations. This ensured we were able to deliver the best possible service to our client.”
Working as a team means a more effective response
WHEN dealing with the aftermath of a natural disaster, good communication between different departments helps make delivering aid much easier. This year, Air Charter Service (ACS) has been busy helping out around the world, having arranged charters in Indonesia following the earthquake and tsunami, a lot of work in Guam following typhoons as well as missions in other parts of the world. Group cargo director Dan Morgan-Evans says ACS’s different offices and departments all work together to make sure it works in the most effective way. There are things to consider when flying in aid, Morgan-Evans tells Air Cargo Week: “You need to make sure the airport is fully functional, there’s no point sending staff in if not. You need to find out if infrastructure is available to move cargo from the airport and whether there is functioning ground support when you get there.” Immediately after a crisis, the commercial team will send an aircraft with search and rescue crew, and someone from the cargo division will go with them to assess the situation and make contacts. Morgan-Evans says keeping communication channels open between the different offices is very important, and between departments in the same office. He says: “The head of commercial jets is next door to me and private jets are on the floor below me. We meet regularly to discuss how to work together.” As for arranging the charter, the basic process is still the same but the ever-changing situation means ACS needs to be flexible. Morgan-Evans says: “With a normal charter the customer comes to us with the exact amount of cargo and where it needs to be and we come up with a solution. For aid, we get a tentative agreement to move something but they need to look for funding. The situation is always changing so we need to make sure we are quick and proactive. The process is the same but you have to be more flexible.” Aid flights often continue for some time after the event; ACS is still doing flights to Indonesia. Morgan-Evans says: “It depends how quickly you can get ships to the area. When ships come in with aid then there is less need for long-haul charter transport.”
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‘Man’s best friend’ on airfreight’s frontline
Canines possess an unmatched ability to identify explosive odours through expedient and unobtrusive residue detection
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BRANDON FRIED, executive director of the Airforwarders Association welcomes Capitol Hill’s moves towards approving third-party dog teams to screen cargo
fter years of research, debate and finally a TSA initiative is almost ready to allow private, third-party dog teams to screen cargo, the recently passed US Federal Aviation reauthorisation legislation now mandates that the TSA (Transportation Security Administration) implements the new canine programme. TSA may not have needed the law to force the advancement of the canine program, since the effort is well on its way within the agency with promises to have privately supplied certified canines screening cargo by December of this year, but this mandate confirms critical bi-partisan support for this important security initiative. Allowing privately supplied dog teams to address the federal mandate. As of this writing, the final programme outscreen cargo has always had support throughout the industry but convincing lawmakers and lining the requirements for certifiers and canine regulators to allow such a detection tool was no detection teams has not been released by TSA, easy task. The Airforwarders Association, work- but is expected soon. Freight forwarders, airing in concert with like-minded stakeholder lines, trucking companies and other entities groups, spent several years convincing TSA wishing to utilize privatized canine screeners and Capitol Hill oversight committees that dogs can and should be engaging providers now. sourced from the commercial sector could meet Early interaction with several firms currently or even exceed government performance stan- expressing interest in the program will allow familiarization - not only with the companies dards for this next chapter in air cargo security. We all know that global air cargo continues but with the canine screening process for cargo. Many providers may tout the quality of their to be a primary target for terrorists. With thousands of shipments being transported around dog teams and training processes, so visiting a the world every day, security vigilance is a few facilities to verify such claims may be worth the trip. Remember constant priority for that regardless of both the industry and how effective these government. providers claim to be, As threats of terrorall canines and hanism continue to evolve, dlers must pass the so does the risk-based, rigorous certification multi-layered secuprocess to achieve rity approach used to screening authorizadefend our skies. Comtion by TSA. mercially supplied The Support explosive detection Anti-Terrorism by canines simply proFostering Effecvide another layer. tive Technologies As in professional Act (SAFETY) prosports, not all players vides incentives for will make the team. the development Certification and testand deployment of ing standards for the anti-terrorism techTSA third-party explonologies by creating sive detection canine systems of risk and litscreening programme igation management. promise to be rigorThe US Department ous and challenging to of Homeland Security attain. Setting the bar is currently working high will ensure that to include SAFETY Act all canine screening of coverage for the TSA cargo is performed by Third-Party Privatteams meeting strict Fried: Congratulate TSA and Congress in TSA standards to ade- initiating one of the most active cargo security ized Canine Program. Once approved, quately and efficiently programmes in the world
obtaining this protection is recommended not only for the actual canine providers but, if permitted, users as well. Once the third-party canine programme begins, entities wishing to screen cargo using explosive detection canines will likely secure arrangements with suppliers. Since this versatile method of screening is expected to surge in popularity, the initial number of canine teams available may be limited. This shortage while temporary could occur because of the time needed in the breeding and training process and of course, a realisation that some dogs, like professional athletes, may not be qualified to make the team. But in the commercial world, nature abhors a vacuum, so
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vendors are likely to fill the void with certified teams quickly. The next chapter in cargo screening is exciting, and when combined with electronic technology standing by or used in conjunction, canines possess an unmatched ability to identify explosive odours through expedient and unobtrusive residue detection. These highly trained dogs allow full container screening capabilities, an ability previously unavailable through the use of conventional machinery. We congratulate TSA and the United States Congress in initiating the programme as part of one of the most active cargo security programmes in the world.
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K9 alliance brings the best breeds together Canines have an incredible sense of smell, up to 40 times stronger than a human. Our four-legged friends are proving to be very useful at detecting threats in air cargo.
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hen the Transportation Security Administration’s Certified Cargo Screening Program Canine (CCSP-K9) was established, it was clear that no one supplier could supply enough sniffer dogs, so the Cargo Screening K9 Alliance (CSK9) is bringing together the best of the breeds in the canine industry. TSA canine resources are primarily used for passenger screening, it was clear there would not be enough for screening cargo so airlines and freight forwarders were allowed to use Third Party K9 Cargo (3PK9-C) certified explosive detection canine teams (EDCT) as a primary screening method. Under the umbrella of ITC Capital Partners, the limited liability company consists of Vapor Wake K9, Vohne Liche Kennels, Southern Coast K9 and K9 Employment, and has four regional hubs representing the North East, South East, South Central and West of the US. Vapor Wake K9 president, Paul Hammond tells Air Cargo Week it was clear that no one company could provide enough dogs or handlers at any one time.
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He explains: “The TSA arranged meetings to discuss with other canine providers in the industry. We saw an estimate saying there were a thousand dogs, and a high estimate of 2,000 teams.” There were concerns about the amount who would be ready when needed, Hammond comments: “Canines are in high demand, the whole nation has a shortage of handlers. We have to find them to team with the canines in the period of time we need them.” It was clear that no one company could cope on their own, so an alliance of experts would be required, bringing with them different areas of expertise and ensuring they have a wide coverage across the US. Founder and managing partner of CSK9, Vapor Wake operates a 320-acre training academy in Anniston, Alabama and is the south-central hub of the alliance. Denver, Indiana-headquartered
Vohne Liche is strategically located as the North Region hub to provide support for major international cargo hubs and also operates facilities in Banning, California and in the Netherlands. Southern Coast K9 has a training centre in New Smyrna Beach, Florida and offers several areas for training. K9 Employment provides recruitment services, giving the alliance access to thousands of handlers with military or police experience. Hammond says: “The alliance has coverage with regional hubs with very large training academies. We have the ability to mobilise quickly.” The alliance has a Dutch-based kennel to get the best European working dog stock, allowing CSK9 to sniff out the best canines. Breeds including German Shepherds, Spaniels and Labrador Retrievers are best due to their intelligence, temperament and hunt drive. For the dog, search a box or ULD or shipping container
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is a game of search. Hammond says: “If they thought they were looking for a bomb then they probably wouldn’t want to do it!” The dogs need to be intelligent and robust to cope with the noises and distractions of working in a cargo warehouse. K9 has a $20,000 PA system to play sounds such as forklift truck and aircraft taking off and landing to get the dogs used to the sounds of the airport warehouse. “It is very important to prepare them for site operations” Hammond says. Training the dog usually takes between eight and 12 weeks, depending on the individual animal, with another four to eight weeks for the handler. Working with canines in cargo gives handlers a career once they have left the military. A dog’s sense of smell is 40 times more sensitive than a human’s, and Hammond was involved in a Pentagon study evaluating detection technology. Canines were able to detect at least 85 per cent of threats while the nearest technology managed around 50 per cent. Hammond believes the canines are “great for the industry”, and that airlines and freight forwarders understand that it is a “win-win situation”. The dog teams can significantly speed up search and scanning cargo. It can take a team of three to six workers between six and nine minutes to unwrap a pallet, put the cargo through an x-ray machine and put it back together. Hammond says: “A canine team is able to do the job without unwrapping the cargo in about 30 seconds. The time and cost savings are huge.”
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Finding the opportunities 3PK9 will bring
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he Third Party Canine Cargo Program (3PK9) will allow third party providers to certified canine teams to screen cargo under the Certified Cargo Screening Program, and MSA Security says demand for well-trained dogs will grow. The New York City-headquartered global security firm, which was founded in 1987, says being able to work in a Transportation Security Administration (TSA) environment will increase demand for the dogs as they are “exponentially” more efficient at screening cargo than traditional methods such as X-ray or trace detection. MSA is well prepared for the program, saying: “MSA has been providing services to screen cargo for the past 10 years in the unregulated space. Since TSA is moving forward with 3PK9 providers, MSA has enhanced its training methodology and increased deployment in preparation for certification.” Its Windsor Program consists of four phases of training – breeding, socialisation, imprintation and training in the operational environment. Breeding and socialisation are very important for a successful detection canine, with MSA saying: “MSA works with service dog organisations to make sure our dogs are comfortable in different types of environments and are accustomed to noises, people, and high activity.” For imprintation, dogs are trained on 32 commercial and military grade explosives as well as homemade explosives. As for training, getting them used to their operational setting ensures they have experience in a specialised environment. MSA says: “We train our air cargo teams using ULDs, cookie sheets, pallets, and so forth.” Sporting and herding breeds are MSA’s preferred dogs, including Labrador Retrievers, Golden Retrievers, German Shepherds and Belgian Malinois. To ensure the most appropriate dogs get selected, MSA sources them from well-qualified organisations who raise service and work dogs.
MSA says: “MSA gets dogs between 12 and 24 months of age, once they have completed the breeding and socialisation phases of training. This is in phase one and two of training as they are bred and socialised. Imprintation and operational preparedness occurs in about 90 days, depending on the individual canine.” MSA looks for certain qualities in a dog, a high energy, play drive, social and environmental soundness and the drive to please are all traits to a good sniffer dog. The company adds: “MSA has a single handler philosophy that enables the handler and its canine to bond. By strengthening the bond between the canine and handler, the canine is more driven to please the handler, and the handler is better accustomed to minute changes in behaviour.” All of this work helps to utilise the sensitivity of a dogs nose; MSA says a canine nose is 40 times more effective than a human nose thanks to having 300 million olfactory receptors. As an example, MSA says: “Where a human may walk into a kitchen and detect that pasta sauce is cooking on the stove, a canine could walk into that room and detect tomatoes, onions, celery, oregano, salt, pepper, and every individual component.”
All of these skills make canines ideal for sniffing out threats to air cargo. MSA says: “They have been conditioned to do so over centuries of evolution. It is our job as humans in the detection world to make sure this natural ability is utilised in the most effective manner.”
K2 sniffs out the best dogs
TRAINING a canine to work in air cargo security is not much different from any other detection work, but finding suitable dogs is a major challenge, K2 Solutions cargo screening business development manager, Jennifer Haigh tells Air Cargo Week. The perfect dog will have a strong Hunt Drive, meaning it must have a desire to search and locate an item for a reward. K2 uses common working dogs including Labrador Retrievers, German Short Hair Pointers, German Shepherds, Belgian Malinois and mixes of Shepherds and Malinois. If the dog has a strong Hunt Drive then it will be suitable for detection work. It also needs solid environmental soundness, and sociability so it will not be aggressive around other dogs or humans. Haigh says: “Canines that have the ability to adjust to and recover from environmental issues that will occur during normal operating practices will be at the forefront of canine selection for cargo-specific environments.” After finding suitable dogs, K2 needs to set up training areas that match the work space so the training can get underway. The time it takes to train the dog will depend on the individual though Haigh says: “As a general rule from a green canine to a single purpose (cargo type) canine the training can run between 45 and 60 training days. This training will vary depending on the canine as well. Some are faster learners than others.” All this training will help utilise the incredibly strong sense of smell that canines possess. Haigh explains: “Canines have the ability to locate odour in the part per trillion range. Scientists in a laboratory environment have not yet been able to calibrate how a dog “breaks down” odour.” “Beyond this technological advantage dogs also hunt for their odour, where existing technologies rely on the human factor to introduce a sample or item and in some cases to make the decision on whether a threat is present.”
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Thominet: Exciting times for GSSAs When moving into a new or developing market, or cutting costs in an existing market, the choice of the right GSSA can be a make or break decision
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ith more than 69 subsidiaries and 147 offices spanning more than 47 countries, Paris-based ECS Group must maintain a corporate esprit de corp across many time zones.
How they do that is described by ECS Group CEO Adrien Thominet. He said: “I’m not going to lie, it’s no mean feat, especially in the context of our exponential growth over the past three years. Yet we’ve got it down to a ‘T’ and this team spirit and sense of belonging is actually continually growing. To achieve this, we‘ve put in place various tools and processes, both in terms of internal communication and organisation, while involving all the teams as much as possible so that they feel supported by the group. “But more than that, we share common values that unite us and stop us being a clash of multiple GSSAs, instead making us one and the same team. We’ve forged strong connections between all employees, managers and the head office. The Regional Board Meetings which we regularly hold, for instance in Europe last Sep-
tember, recently in Asia in November and at the end of November in America, allow us, beyond the strategic issues, to strengthen our ties and think about our common future. We might be present all around the world, but we’re one and the same team working in the same direction, on the road to success.” The ECS Group represents over 136 airlines. Most partnerships are exclusive, (GSSA contracts), some are connected to one country, and others are to several countries in the same continent, which are what we call group contracts. “Our teams then work together and in agreement to maximise the company’s income and collectively work towards the best possible performance. This is the case, for example, with DHL in Europe and Asia, Aeroméxico in Europe, Qatar Airways in Latin America, and Ukraine International, all around the world. We’re also developing more and more global partnerships in Total Cargo Management (TCM), where we’re fully replacing the airline in terms of its entire cargo chain.
Thominet: ‘we share common values’ “This business year is exciting. We have this type of partnership with JetStar Asia and Air Italy for example. It’s a service which is in growing demand among airlines, so these contracts are tending to develop in the group. Watch this space.”
Why HAE stands out from the crowd ACCORDING to HAE Group Managing Director Colin White, the UK-based GSSA does not do things like other GSSAs. He said: “We believe our strategy is different to most GSSAs, as each of our GSSA offices is a ‘sales first’ office. Through our own software development team, we have the HAE Sales Portal. From this we can make rate offers, negotiate and manage the spot pricing process. This allows the local sales team to concentrate on high volumes of sales and then the back office and offshore teams work on the booking, administration, tracking, post flight and administration processes. We believe this also gives us a low cost of entry position to many markets.” HAE currently represents 20 airlines across the world. The majority are exclusive and many are in multiple markets. In the UK and Ireland, HAE represents nine carriers in all on various contracts. The longest representation is 21 years, said White. “Since our first year of operations and in the case of our UK Air Liaison brand, which became part of our group in 2011 – some of our carriers for over 25 years,” he said.
Fixed term contracts Airline GSSA procurement is via fixed term contracts and subsequent RFQ mean that opportunities to bid are more frequent. The the downside is that as an airline’s business partner, the principal may want to review the
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White: ‘common for airlines to have a broader discussion with us’ relationship. “We would hope to have multiyear agreements of a minimum of three years allowing us and our partner to develop a strong relationship,” he noted. HAE has four key areas of activity, GSSA, Solutions, Training and Handling and the activities are distinct and can complement each other. They do not always go together, he adds. It is common for airlines to have a broader discussion with us once we are their GSSA as we can give them efficiencies in other areas such as handling and also freight forwarders HAE Solutions as a value add to the GSA sale. The intention is to gain the airline an increased share of that particular market.
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Private equity puts its money behind ALG
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ohn Major was British prime minister when Air Logistics Group (ALG) was established 25 years ago. Still in charge is founder and CEO Stephen Dawkins still at the helm, still striving to be the best in its field. Dawkins says: “ALG has gained in respectability and has blossomed into a professional outsourcing company recognised and respected by its peers in the cargo industry. “Our senior executive team and I are very proud to have so many fantastic managers with airline and handling company experience driving our business. “These managers bring tremendous knowledge and experience, which complements other younger members of the management team. This combination is the driving force behind our success. A loyal and dynamic management team focusing on cargo experience and service is a must in our industry today.” As it approached its quarter-century, the company was acquired by “two heavyweight private equity companies” who became major majority
shareholders. According to Dawkins this provided “the bonding requirements of its airline clients, investing in resources and technology and a financial war chest for acquisitions.”
Accounting for success
The group issues some two million quotations per annum, of which 25 per cent are booked within 16 minutes of initial enquiry, resulting in almost half a million airway bills processed per year generating half a billion Euros of cargo sales for clients. Cargo revenue accounting departments strategically located around the world, supporting airlines to verify and collect their revenues as swiftly as possible. Dawkins is keen to point out one worldwide industry first for the group. He says: “[ALG is] the world’s first GSSA to implement online compliance certification for its employees and appoint a full-time compliance officer advised by leading lawyers in Manhattan, New York city, to conduct weekly audits on its own business, ensuring compliance regulations are met in this fast moving and complex world that we live in today.” “It’s clear that in the next 10 years over 40 per cent of the world’s cargo airline business will be outsourced to third party specialists like ALG. That’s over $40 billion of outsourced cargo revenue, which is a very exciting prospect,” Dawkins says. “In the same way that the UK high-street retail industry is changing and being overwhelmed by the consumer’s appetite for
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online shopping, so too the ‘high-street’ airline cargo industry is being overwhelmed by the demand from Forwarders to speed up the quotation to booking process.” “Digitalisation is already upon us. When I started in 1994 there were no emails; telephone calls and letters were the norm. Nowadays even emails are considered a slow process for forwarders, because of the demand from their shippers, want information as quickly as possible, at a specific service level and, of course, at the right price. “They need that information as swiftly as possible.”
Private equity invests
“ALG is not frightened to invest to remain the market leader. That is one of the reasons why we have brought in two of the heaviest private equity companies in the world, and they know that continued investment will be required to maintain our position. We have made significant investments over the last ten years upgrading and integrating our internal IT infrastructure to complement our data capture and verification units in Bulgaria and Poland.” “Data is key to driving the business. You need both internal systems and airline systems to work in sync with each other. Our system holds the data of the client, what their needs are and when we can predict their next shipment will be arriving, and the airline system provides the available capacity and booking confirmation.”
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Airfreight in good shape along the 49th parallel The US and Canada are two of the most significant air cargo nations that share a border
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or Paris-based ECS Group, the airfreight market in USA and Canada is “pretty good” at the moment. That is the opinion of ECS Group regional manager North America Danny Olynick. “However, we have to face some changes. In Canada, the recent legalisation of cannabis in October also adds a huge player in the market, with the challenges related to the handling of that commodity. In the USA, because of the changes in the political environment, we have to be vigilant and close monitoring of the trade policy environment remains essential. “The inbalance between demand and capacity is still present in Canada, in favour of the shippers. This has driven the yields to a record low this year, especially for belly freight going to
Olynick: ‘we have to face some changes’
Europe. Trucking services have been a challenge as well, especially to connect with transborder flights, consequence of the new government regulations. But we still are identified as a global solution and, for the USA, with our headquarters in Miami, we are at the hub of expanding our footprint into the growth markets of South America, Central America and the Caribbean regions. “In Canada, with the acquisition in 2016 of Expair Cargo, we have considerably extended our network and we are now able to provide services to all the Canadian provinces. With Expair we also can develop our offer to propose new destinations ex Canada to our partners and develop more the cargo technologies facilitating track & trace, reporting and visibility. In the
US, Globe Air Cargo is part of ECS Group from the beginning. By being under contract with approximately 18 carriers we have the opportunity to sell into a vast majority of the globe.” The uncertainty of the US trade wars “has begun to show some impacts on the economy as seen in the recent decline in confidence driving the stock market,” notes Olynick. From an air cargo perspective, there has been a shift of demand for exports to China in recent months. This could actually play in favour of Canada as shipments that used to transit via the USA are now routed via Canada in order to avoid tariffs. “If not resolved in a near future, the implications might go far beyond trade wars alone and affect the way the transportation industry is actually shaped,” he says.
Air Canada breaks ground for new Edmonton facility AIR Canada has broken the ground for a new facility at Edmonton International Airport, housing ground support equipment services and cargo teams. Terracap Group will construct the 50,000 sq ft building, with ground support occupying 30,000 sq ft and Air Canada Cargo utilising the remaining 20,000 sq ft. The facility is expected to open in September 2019, with Air Canada signing a 15-year lease, representing an investment of $19 million over the term of the lease. Air Canada senior vice president for regional markets and government relations, Kevin Howlett says: “Air Canada Cargo has significant business in Alberta and Western Canada, and with air freight and logistics being a rapidly growing sector, we have a strong focus on infrastructure improvement across our network. “Our goal is to provide world-class service
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and a brand-new facility goes a long way in creating an enhanced experience for our customers and for our employees.” In 2017, Air Canada Cargo handled 3,200 tonnes of goods including pharmaceuticals, mail, art, and oil and gas industry equipment through its Edmonton facility. Terracap Group of Companies president and CEO, Larry Krauss says: “The Terracap Group of Companies prides itself on its relationship with great tenants, so we are more than fortunate to be able to construct a new state-of-the-art building for Air Canada. “The airline has been such an integral part of the airline industry in Canada, so we are very proud to be a part of such a great initiative at the Edmonton International Airport and look forward to building on the relationship with Air Canada and the team at the Edmonton International Airport.”
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