Aviation logistics the dynamic partnership of air freight and supply chain part 2

105 Express and mail W 09 orldwide air freight tonnages over the last two to three decades indicate the growing strength of the express operators over conventional air cargo carriers The global companies now leading this business are known as ‘integrators’ thanks to their fully integrated in-house systems covering every aspect of the business or small freighter operator with relevant traffic rights They collect shipments, control and deliver them, totally within their own systems, backed by a reliable tracking service for their customers With large fleets of freight aircraft, the integrators are not affected by the restrictions or timetables of scheduled passenger flights and are able to concentrate totally on these shipments In the case of deliveries to destinations with potentially low volumes where a regular rotation is not justified, cargo is often allocated to another carrier that covers the route Conventional airlines, obliged to compete with their more streamlined integrator competitors, have in many ways caught up with these methods and technologies; they now offer excellent services, but must always look after their priority passengers The same also applies to normal cargo flown in their bellies Many of the systems employed by airlines and handlers are derived from the leading integrators The carriage of post was the original base of the fledgling air cargo industry and has continued as an important part of the cargo business However, with the revolution in e-mail, traffic of conventional letters has been replaced by online trading of consumer goods (see Chapter 13) In the 1960s international postal services were generally slow and unreliable and as a result businesses often preferred to pay for a premium service from an express operator In the United States, Federal Express, thanks to considerable promotion, became a household word and people would be heard to say, ‘I will FedEx the documents.’ It was a clever move to promote the service direct to the people in offices, especially secretaries and receptionists who could choose the service for urgent items The world’s postal authorities realized that they were rapidly losing business In his book The Rise of Global Delivery Services, James Campbell 106 Aviation Logistics (2001, J Campbell Press) provides a detailed account of how post offices in the 1980s developed services to compete with privately owned integrators An excellent example is the action by the French post office in 1986: a joint venture with a private airline TAT was formed (SFMI) It was able to operate as a private company while retaining the solid public service base Since that time the industrialized nations have developed systems that allow them not only to compete with the express operators but also to cooperate with them In Germany the Bundespost was privatized in 1995 and today Deutsche Post DHL employs around half a million people in over 220 countries It has become the world’s largest logistics operator, involved in all aspects of supply chain activities Overall in Europe, the express industry employs around 300,000 people and delivers more than 260 million packages each year – almost half of the intra-Europe air cargo market The express delivery companies are able to connect 90 per cent of the world economy within 72 hours In 2009, the industry had a direct employment base of around 1.3 million staff worldwide, providing work for people with a wide range of skills including sorting and delivering, administration and sales, as well as engineers/technicians and managers It is estimated that the express industry has also created a total of 2.75 million jobs worldwide through indirect employment Market sectors The express industry’s biggest markets are IT and telecommunications, aviation, pharmaceuticals, electronics, retail, and financial and business services, and now the rapidly expanding e-tailing sector The industry: ●● operates in over 220 countries; ●● handles over million packages daily; ●● operates and owns more than 1,200 aircraft and loads shipments on over 2,000 commercial flights daily; ●● operates 200,000 trucks and delivery vehicles; ●● operates global electronic track and trace systems; ●● is now used as default transport by virtually all multinational companies Express and Mail Changes in trading patterns Thanks to the burgeoning online retail sector, almost all goods – electronics, fashion, DVDs, food and pharmaceuticals – are regularly purchased by this method While retailers may be suffering, courier companies and express operators in all developed countries benefit from this trend An estimated 40 to 50 per cent of businesses now rely on this overnight delivery revolution World trade is forecast to increase by over 60 per cent between 2008 and 2018 despite the recession of 2008/9 Many companies state that productivity and reduced costs can be achieved by using express delivery The air cargo industry is now better equipped to attack the market by the use of thousands of international wide-body flights with vastly increased cargo capacity Integrators An integrator is so named as it handles its traffic almost entirely through its own internal systems and controls, although it frequently subcontracts other carriers when necessary Since their introduction, integrators have become one of the main competitors to traditional air cargo operators At the same time, however, thanks to subcontracting to other airlines and handlers, they have created new cargo for these carriers The increasing use of sea freight is also eating into traditional air traffic The United States-based integrators, faced with limited domestic markets, started to expand both their geographical reach and their product portfolios to include more conventional international cargo, utilizing unused aircraft capacity and even branching out into sea freight The list of the biggest cargo carrying airlines in 2013 was headed by FedEx with a fleet of 643 aircraft, DHL (250), UPS (237) and TNT (182), followed by Korean Air Cargo (27), China Postal Airlines (22),Cathay Pacific Cargo (22), China Airlines Cargo (21) and Cargolux (20) Although at one time carrying documents and traditional express packages, today these companies compete globally for all categories of air cargo Brief profiles show the scope and diversification of the leading integrators DHL DHL was founded in San Francisco in 1969 by Adrian Dalsey, Larry Hillblom and Robert Lynn In 1971 it became the first US air express operator to offer services to Asia, with a service to the Philippines, followed in 1973 with services to Japan, Hong Kong, Singapore and Australia In 1976, DHL 107 108 Aviation Logistics entered the European market and three years later it expanded its operations to include the carriage of parcels in addition to documents In 2000 it signed a strategic agreement with Lufthansa Cargo and Japan Airlines whereby each airline took a 25 per cent stake in the company DHL was acquired by Deutsche Post in July 2002, when the German postal group bought out the minority shareholdings of the two airlines Deutsche Post today generates annual revenues of more than €51 billion (US$64.25 billion) DHL Global Mail operates one of the world’s largest delivery networks, with 38 sales offices and 28 production centres in five continents serving more than 200 countries It is used predominantly to deliver mail, hybrid mail and parcels, including business-to-customer (B2C) traffic It currently claims to have a 14 per cent share of the worldwide mail market and is capable of handling million mail items daily Federal Express (FedEx) Federal Express, founded by Fred Smith, started overnight services in April 1973 Company headquarters were moved to Memphis, a city selected for its convenient location close to the original target market cities, as well as good weather The airport was also willing to make the necessary improvements for the operation Smith identified the tremendous difficulties in getting packages and other air freight delivered within one to two days This dilemma motivated him to the necessary research for resolving the inefficient distribution system This led to the development of the hub-and-spoke system for handling air cargo shipments FedEx’s main hub is in Memphis, while its other major international hubs are at Paris Charles de Gaulle, Dubai and Guangzhou in Southern China It is said that FedEx Express invented express distribution and is the industry’s global leader, providing rapid, reliable, time-definite delivery to more than 220 countries and territories, connecting markets that comprise more than 90 per cent of the world’s gross domestic product within one to three business days Today FedEx Express has the world’s largest all-cargo air fleet, consisting of Boeing 777 freighters and MD-11Fs as well as Airbus A-300F and A-310F aircraft FedEx Corporation provides strategic direction and consolidated financial reporting for the operating companies that operate collectively under the FedEx name worldwide: FedEx Express, FedEx Ground, FedEx Freight, FedEx Office, FedEx Custom Critical, FedEx Trade Networks, FedEx Supply Chain Solutions and FedEx Services In 2006 FedEx Corp acquired ANC Holdings Limited, a UK domestic express transportation company Express and Mail UPS United Parcel Service Inc started life in Seattle in 1907 as a messenger company; it has grown into a multi-billion-dollar corporation with its headquarters in Atlanta, and total revenues of US$53.1 billion Today UPS is a global company with one of the most recognized and admired brands in the world UPS is one of the largest express carrier and package delivery companies and is also a leading provider of specialized transportation, logistics, capital, and e-commerce services, managing the flow of goods, funds and information in more than 200 countries and territories worldwide The company, also known to many as ‘Big Brown’, due to the distinctive colour logo, employs around 400,000 people and handles around billion packages and documents annually, or 15.8 million packages and documents each day TNT TNT Express is an international courier delivery services company with headquarters in Hoofddorp, Netherlands The firm has fully owned operations in 65 countries and delivers documents, parcels and pieces of freight to over 200 countries Formerly an operating division of TNT NV, TNT Express was demerged from its parent company on 26 May 2011, taking a listing on the Euronext Amsterdam Stock Exchange TNT NV subsequently renamed itself PostNL The company operates road and air transportation networks in Europe, the Middle East and Africa, Asia-Pacific and the Americas It employs 77,000 people and runs a fleet of 30,000 road vehicles and 46 aircraft TNT Express aircraft operate under the IATA code of TAY (TNT Airways) In April 2015, FedEx bid to purchase TNT for a reported US$4.4 billion Should this go ahead, it would involve restructuring the two companies’ European facilities (At the time of going to press, this deal is still not 100 per cent confirmed.) Postal services Mail delivery and special parcels services are operated in nearly every country in the world, with varying levels of efficiency National post offices are supplemented by a whole range of courier companies and mail specialists, the majority of which are purely domestic, although many have international capability It would be impossible within the scope of this chapter to cover this sector in a meaningful way, so we have restricted our comments to the main integrators and some selected specialist companies 109 110 Aviation Logistics Parcelforce Worldwide For over 15 years the company has provided a service for British businesses needing to send express packages overseas as well as within the UK It has a long history as part of the Royal Mail Group In 1990 Royal Mail Parcels was rebranded Parcelforce, and there was investment in IT and infrastructure, online tracking and the construction of national and international sorting hubs Parcelforce Worldwide is part of the Express Mail Service (EMS) network EMS offers customers services around the globe through its global priority products, with 54 depots across the UK EMS is an international postal Express Mail Service for documents and merchandise, offered by postal operators of the Universal Postal Union (UPU) – see below China Postal Express & Logistics Approved by the State Council, China Postal Express & Logistics was co-founded by China Post Group and provincial postal companies as a state-owned limited company in June 2010 The company is the largest integrated express and logistics service provider with the longest history of business operation and the widest coverage in China China Postal Express & Logistics has 31 subsidiaries, as well as owning China Postal Airlines and China Post Logistics China Postal Express & Logistics is mainly engaged in domestic express, international express, contract logistics, and LTL United States Postal Service (USPS) Global Express Guaranteed is the fastest USPS international shipping service, with transportation and guaranteed delivery by FedEx Express services It features date-certain delivery in one to three business days to more than 190 countries with a money-back guarantee to all destinations Operating facilities include 1,250 stations (640 inside the United States, 610 elsewhere) and 12 air express hubs The international hubs are located in the Asia-Pacific region, EMEA (Europe, Middle East and Africa), Canada and Latin America/Caribbean FedEx also has 690 world service centres, 1,750 office locations, 6,300 authorized ship centres and alliance partners, and 37,000 drop boxes Express and Mail Universal Postal Union (UPU) The UPU is an intergovernmental organization that provides a forum for governments, postal organizations and other stakeholders in the worldwide postal sector It works to establish the rules for international mail exchanges among its 191 members and to improve the quality of service for customers The UPU was created in 1874, initially under the name ‘General Postal Union’, before changing its name to ‘Universal Postal Union’ four years later The UPU established that: ●● ●● ●● There should be a uniform flat rate to mail a letter anywhere in the world Postal authorities should give equal treatment to foreign and domestic mail Each country should retain all money it has collected for international postage The UPU became a specialized agency of the UN in 1948 and, in 1969, the UPU introduced ‘terminal fees’ – a new system of payment whereby fees were payable between countries according to the difference in the total weight of mail between them This new system was fairer when traffic was heavier in one direction than the other The EMS Cooperative (Express Mail Service) was created in 1998 within the framework of the UPU Its main objective is to promote cooperation between members to allow them to provide customers with a high-quality, competitive EMS service worldwide Today 177 postal administrations have joined the cooperative E-Parcel Group (EPG) network, ideally suited for B2C and C2C deliveries across Europe, through the use of postal administrations Conclusions The entire world logistics industry is liable to rapid and frequent change but the need to transport goods can only expand in the future The defining lines between forwarder and integrator airlines and handlers are becoming more blurred The example of DHL, which has gone from being a simple integrator to performing an entire range of cargo and postal services, has set new dimensions in this sector Even FedEx is involved in ocean freight This points to this sector of aviation logistics certainly developing very quickly in the coming years 111 112 THIS PAGE IS INTENTIONALLY LEFT BLANK 113 Special air cargoes S 10 ometimes using air freight is the only transport solution for a variety of niche cargoes The reasons for this are varied and often change due to circumstances Most of this traffic is carried on chartered freighter aircraft suitable for a specific task; charter brokers serving this market are expert in matching aircraft to shipment The fashion industry is a perfect example of the mix between different modes of transport High-value collections or latest fashion launches which must be in a particular destination on time will probably employ air freight or integrator, while low-cost mass-produced garments will mostly travel by sea With a worldwide market for high-cost goods, there is also the extra security that shorter transit times provide Orchestras, music groups, art and museum exhibitions, even election equipment, all travel regularly by air and in the case of a world tour, may charter one or more freighter aircraft for the duration of the series Ground handling of these delicate shipments requires exact timing by highly skilled experts There is a huge year-round movement of horses for racing, show jumping and breeding Specialist air charter companies such as ACS, Instoneair and Chapman Freeborn handle this growing trade There is an almost constant demand for suppling medicines and life-saving equipment with many operators giving their services free This is another sector where aircraft play a vital role Lack of available landing sites is often a drawback and sometimes relief supplies must be dropped over the site However, some aircraft types such as the AN 12 and C-130 Hercules, adapted from military aircraft, are designed to operate on rougher terrain than standard civil aircraft In addition, much of the relief supplies are dropped or delivered by military aircraft When a disaster occurs, fast response to the emergency is essential and air transportation is often the quickest way to deliver supplies and services to save lives at risk According to the International Federation of Red Cross and Red Crescent Societies (IFRC), in the immediate aftermath of a disaster these primary aid items include food, water, temporary shelter and medicine 114 Aviation Logistics An effective and coordinated logistics operation becomes crucial in saving lives and diminishing the impact of diseases The role of the IFRC’s Global Logistics Service is to ensure that the IFRC has a robust, competent and efficient logistics capacity to effectively carry out its humanitarian assistance activities and achieve its goals Its mission is to create a world-class service to support the core work of the Red Cross/Red Crescent network and to share resources with other humanitarian organizations Charter brokers Globalization has transformed the broking industry – in the 1960s and 1970s it was very rare for a broker to contract a series of flights, but in today’s world of product launches and hyped products manufacturers of everything, be it the latest cell phone or computer product, need to get their product to market with the minimum of delay It does not have to be an existing product; it can be a new item like a smokeless cigarette that a manufacturer wants to blast out there Such launches, although handled by a freight forwarder, very often wind up being chartered through a broker who would know which aircraft were available and reliable Animals Thanks to a number of improvements in animal health technology and relaxation of rules, there is a thriving and profitable market for transporting animals by air At present this traffic represents no more than 4–5 per cent of airline revenue, which is still significant The control of this traffic in live animals requires a wide variety of conditions and international regulations for the animals’ health and condition, and for the grooms and attendants accompanying them in transit The airlines trans­ porting the animals must not only provide the right facilities – stalls, cages and safety levels – but they must also, in their own interests, ensure the integrity and safety of the aircraft While horses, breeding stock and large zoo animals will usually be transported on board a freighter aircraft, smaller animals such as cats, dogs, monkeys and fish are most likely to travel in the belly-hold compartments of passenger aircraft such as the new generation aircraft with considerable hold cargo capacity Although restrictions on the global movement of animals have been greatly eased in recent years, airports are governed by strict regulations for quarantine, and phyto-sanitary controls 182 THIS PAGE IS INTENTIONALLY LEFT BLANK 183 G lo s s ary o f com m o n air fr e igh t t e r m s ACMI  Aircraft, crew, maintenance, insurance (wet lease) air cargo  Goods carried in an aircraft air freight  The loading of cargo into an aircraft; often synonymous with air cargo airside  Those parts of an airport controlled by the Customs authorities that are inaccessible to unauthorized personnel all-cargo carrier  An airline that does not carry passengers apron  Aircraft parking area, for refuelling and the handling of cargo, baggage and mail AWB  Air waybill, giving full details of the cargo block space  Air freight forwarders pre-book space with airlines break-bulk  Outsize or overweight cargo that will not fit in standard containers or pallets CASS  The airlines’ account settlement system Civil Reserve Air Fleet (CRAF)  US military use of civilian service providers of freighters code share  An agreement whereby an airline sells capacity on another carrier’s service Generally applicable only to passenger services combination carrier  An airline that operates both passenger and cargo services consignee  The person or organization to whom cargo is being sent consolidation  When the cargo from two or more shippers is carried in a single shipment CTK  Cargo-Tonne-Kilometre; a key airline performance indicator curfew  Those hours, usually at night, when flights to and from an airport are banned or restricted dangerous goods  Cargo that can only be carried under strictly regulated circum­ stances and on specific flights door to door  The movement of cargo from consignor to consignee by a single operator (usually an express operator or integrator) dry lease  Lease of an aircraft, with the lessee operator providing its own crew, maintenance and insurance e-AWB  Electronic air waybill EDI  Electronic Data Interchange FAA  Federal Aviation Administration (United States) FF  Freight forwarder flag carrier  The national airline of a country (often government-owned) 184 Glossary GHA  Ground Handling Agent (Another term in use is General Handling Agent.) GSSA  General Sales and Service Agent HAWB  House air waybill hub and spoke  The route network where smaller aircraft feed cargo into a main hub which in turn is linked to other main hubs around the world by big long-haul aircraft IATA  International Air Transport Association ICAO  International Civil Aviation Organization integrator  An air express operator, usually with its own hub and spoke JIT  Just-in-time KPI  Key Performance Indicator MAWB  Master air waybill MTOW  Maximum take-off weight multimodal  The use of more than one transport mode, such as air, sea, road or rail noise footprint  The sound map made by an aircraft, usually when landing at or take-off from an airport in built-up areas off-line  A destination not served by a scheduled airline oversize cargo  Cargo that will not fit in a standard container or in a specific aircraft pallet  A ULD on which cargo is placed prior to being loaded into an aircraft reefer  Refrigerated vehicle or container RFS  Road feeder service split charter  Where two or more consignors share space on a chartered aircraft tech stop  Where an aircraft lands at an airport prior to arriving at its destination airport, usually for refuelling purposes TIACA  The International Air Cargo Association tonne  Metric weight: 1,000 kg traffic rights  Intergovernmental agreements stating which airlines may fly on specific routes between countries ULD  Unit Load Device (aircraft container) WCO  World Customs Organization wet lease  See ACMI and dry lease 185 I NDE X Note: page numbers in italics indicate figures, photos/pictures or tables ABS (Airports Bureau Systems Ltd)  59 and ABS5 system  65–66 system 54 ACMI providers  29, 31–32 see also air cargo history air cargo (and)  1–7, 2, 5, 9–17, commodities transported  15 leadership responsibility  14 modal shift  the planet  12–13, 16 profit 10–11 the role of people  13–16 safety and security record  15–16 strengths of  6–7 supply chains under pressure  5–6 Air Cargo Advanced Screening (ACAS)  59, 137 Air Cargo Forum (2010)  57 air cargo history  19–36 air freight market today  see subject entry  the Berlin airlift  21–22, 21 the growth of air freight  see air freight, growth of last words on: interview with Joseph Czyzyk 34–35, 34 regulations and agreements see air cargo: regulations and agreements and World War II  20 Air Cargo Processing 1980s (ACP80)/ACP90  53–55 air cargo: regulations and agreements  19–21 see also conventions International Commission of Air Navigation (ICAN)  19–20 Montreal Convention  20 Paris International Air Convention (1922) 19 Warsaw Convention (1929, 1933)  20 the air cargo world (Oliver Evans, formerly of TIACA)  9–17 people 13–16 planet 12–13 profit 10–11 TIACA (box)  17 air charter companies ACS 113 Chapman Freeborn  113 Instoneair 113 air freight, growth of  22–27, 23, 24 and the airlines  26 in the jet age  23–25, 23, 24 major contributors to  25–26 and unit load device (ULD)  23 see also subject entry using electronic systems  26–27 air freight market today  27, 29–33, 28, 32 aircraft, crew, maintenance, insurance (ACMI) 31–32 all-cargo operators  29 combination carriers  29–31, 31 large heavy lift aircraft  32–33, 32 Air Transport Action Group (ATAG)  156 aircraft 1, 2, 20–21, 27, 28, 32–33, 32 see also air cargo Airbus A-300F/A-310F  108 Airbus A300-600ST Beluga  121 Airbus 330/340  1, 27, 31, 168 Airbus A380-800s  Antonov AN 12  113 Antonov AN-100-150  119 Antonov AN-124  119, 120 Antonov AN-124-100  118–19 Antonov AN-124-100M  119 Antonov AN-124-300  119 Antonov AN-225  118, 119 and Antonov Design Bureau  119 Boeing  50, 120–21, 145 Boeing 707  23, 50 Boeing 737  30 Boeing 747 and variants  23–25, 24, 29, 31, 42, 118, 147, 168 Dreamlifter 120–21 Boeing 777 and variants  27, 30–31, 31, 108, 118, 161, 168 Boeing 787  120 Boeing C-17  33 Boeing MD-11F  108 C5-Galaxy 23 C-13 Hercules  113 C-54/DC-4 (US)  22 DC-8 23 DHL Bell 206 B3 Jet Ranger helicopter 161 Embraer KC-390  33 186 Index aircraft  cont’d Ilyushin IL-76/Il-76TD-90VD  120 large freighter  Lockheed  33, 120 Lockheed L-100 Hercules  120 Lockheed LM-100J  120 medium-sized freighter  Metrox SW4  passenger 1 recycling of  12 Sunderland flying boat  22 and Unit Load Devices (ULD)  68 wide-body 27, 28 Airline Steering Committee (ASC)  53 airlines at the start of computer technology (and) 46–49 1956 – IBM/AA Saber  46 1964 – IBM 360 series, PARS  46 1965 – IBM and BOAC, IPARS  47 1970s (early) – UNIVAC (Unisys) USAS Cargo 48 1974 – Alitalia, FAST (PO4) system developed from IPARS  47–48 1980 – BA goes live with Fast Alitalia system (BA80)  48 2014 – legacy systems holding airlines back 49 airlines/cargo operators  Air Berlin  42 Air Canada  48 Air France  20, 30, 48 Air New Zealand  69 AirBridgeCargo (ABC)  29 American Airlines Freight-Sabre system  48 Antonov Airlines  32, 119 BOAC BOADICEA computer system  47 Boeing Aircraft Company  145, 147 British Airways (and)  30, 48, 69 Mercury handling system  65 Speedwing Logica  65 Travicom 54 British European Airways/Beacon online network 47 Cargolux  4, 29, 64, 65, 67, 73, 107, 149 Delta 46 Emirates Airlines  4, 24, 30–31 Etihad  24, 30 Icelandair 69–70 Indian Airlines  58 Japan Airlines  108 Kalitta Aviation  29 KLM  20, 30, 54, 69, 147 Lockheed  23, 33, 120 Lufthansa  20, 30, 42, 48, 69, 108 Nippon Cargo Airlines (NCA)  29 Pan Am  46, 58 Qantas Northwest  48 Qatar 24 Sabena 30 SAS 30 Southern Air  29 Swissair 30 TNT Airways  109 US-based 30 Virgin Atlantic  147 Worldwide Flight Services  55 airport connections (and)  37–43 see also airport types environmental pressures  38–39 globalization 37–38, 38 hubs  39, 40–41 integrators 43 airport types  40–42 international hubs  40–41 small and medium  42 specialist cargo  42 airports Athens  134, 164, 165 Atlanta 37 Barcelona 76 Beijing 4 Bilbao 40 Bristol 40 cargo-friendly 40 Chicago O’Hare International  161 Cologne (CGN)  40, 43, 71, 148, 149 Dubai  22, 25, 37, 39, 41, 102, 108, 131, 167 Dusseldorf International  42 East Midlands (UK)  37, 149 Frankfurt  4, 25, 38, 40, 71, 83, 74–76, 96, 149, 164, 167, 169, 170 Guangzhou 108 Halifax Stanfield  40 Hong Kong  40, 48, 78, 79, 146, 149 Houston 40 in India  68 international hubs  40–41, 108, 110 Istanbul  69, 134 Korea hub  25 Leipzig 149 Liège (Belgium)  37, 40, 100, 148 London 40 London Heathrow  4, 45–46, 65, 70, 71, 73, 85, 128, 164 Los Angeles  35, 68, 149 Luxembourg (Findel)  100, 149 Madrid  75, 76 Manston 37 Miami  22, 40–41, 68, 149 Mumbai 40 Index Munich  40, 149, 170 New York  22, 40, 149 Paris  37, 43, 96, 149 Charles de Gaulle  37, 71, 108, 130, 146 Schiphol  38, 128, 163 Singapore  22, 40 small and medium  42 small/small regional  40 Spain (Vitoria)  149 specialist cargo  42 Airports Bureau Systems Ltd (ABS)  59, 64–65 ABS5 system  65 ABS2000 system  55  animals: protection of endangered species  see CITES animals, transporting (and)  114–18 see also regulations airport animal centres  117 animal classifications  115–16 cattle and farm animals  118 exotic creatures/zoo animals  117 horses 116–17 Live Animal Regulations (IATA)  115 pets 116 regulations on/animal diseases  115–16 smuggling 117 ASM 54–55 2000  54, 55 and SEQUOIA software  54 Berlin airlift  21–22, 21 Blunt, J (Collector of Customs)  50 BOAC IPARS system  48 Bodde, P (GSSA Kales Germany GmbH)  69, 70 Boss, R  92 (Hilverda De Boer)  92 Bram, W  75 Brazier, L (Manager, Cargo Handling Technologies) 55 British International Freight Association (BIFA) 53 British Telecom (BT)  52 Brittin, D (Secretary General, TIACA)  136–39, 136 Campbell, J  105 Canada (and) Advanced Commercial Information (ACI) system  59 Pre-load AirCargo Targeting (PACT)  59 regulations on shipment data  58 cargo activity record (CAR)  48, 51 Cargo Agency Programme  178 Cargo Automation Research Team (CART) study group  47 Cargo Community System (CCS-UK)  26, 54–55, 56 Cargo Facts  27, 28 Cargo Forwarder Global 166 cargo handling agents and the impact of IT (and) 45–66 airlines at the start of computer technology 46–49 see also subject entry change factors for  49–55, 57–59 Customs system – UK  50–55, 56 IATA  55, 57 integrated operators  58 security 58–59 early days for  45–46 Menzies Cargo  65 Ogden cargo  65 role of General Handling Agent see general handling agent (GHA)  59–61, 63–66, 62 Cargo Handling Technologies  55 CARGO-IMP 48 Cargo Security Alliance  133 cargo security and risk (and)  127–41 see also terrorism corruption 140 crime 127–30 see also subject entry cybercrime 140 health hazards  135–36 see also World Health Organization (WHO) interview with Secretary General of TIACA: Doug Brittin  136–39 natural disasters  133–35 see also subject entry CARGOSPOT (CHAMP)  65 case studies for the cool chain business The Fish Society goes global  94–96 Live lobster Clearwater perspective  97–98 freight forwarder Hellmann Worldwide  80–86 innovation and trends helicopter delivery – what next?  160–61 certificates CITES 63 of origin  61, 63 CHAMP  59, 65 see also SITA changing buying habits (and)  156–61 e-commerce and air cargo: problems for airlines 158–59 the IATA view  160 187 188 Index changing buying habits (and)  cont’d solution for airlines, airports and handling companies  159–60 chapter conclusions/summaries for air cargo history  33–36 airport connections  43 cargo handling agents and the impact of IT  66 cargo security and risk  141 cool logistics  103 express and mail  111 road feeder service  76 special air cargoes  125 CHIEF software  54–55  China  25, 57, 68, 70, 176 pollution and environmental emissions in  147–48 Postal Express & Logistics/China Post Group 110 Civil Reserve Air Fleet (CRAF), US military use of  29 CO2 emissions  12, 144–45, 146 conferences  79, 173 Paris conference (1925)  20, 175 Traffic Conference (1947)  177 UN Conference on Trade and Development (UNCTAD)  179 controlled atmosphere containers (CAC)  conventions  see also law Chicago Convention  177, 178 Annexes 178 Convention on International Trade in Endangered Species (CITES)  115 Montreal Convention (1999)  20, 57, 176 Pan-American Convention on Commercial Aviation (1928)  176 Paris International Air Convention (1922)  19, 175 Warsaw Convention (1929)  20, 175–76 liabilities 176 the cool chain  87–88 and market fluctuations  88 as part of daily life  87–88 Cool Chain Association  87, 89, 90, 100 the cool chain business  89–102 animal semen  99 fish and live seafood (and)  93–99 see also case studies imported seafood products  96–98 supply chain, cold chain and transport  98–99 flowers 90–92 in Kenya  91–92 in the United States  92 fruit and vegetables  92–93 asparagus 93 ground handling  102 insects and eggs  99 pharmaceuticals and dangerous goods 100–102 cool logistics (and)  87–103 see also case studies; the cool chain and the cool chain business creating standards  89 Corominas, M  74–75, 76, 76 crime 127–30 cargo theft  128 cases of  128–29 see also legislation (US) corruption 140 counterfeiting 130 countermeasures to  130 cybercrime 140 internal theft  129–30 road theft  129 definition (of) corruption (WEF)  140 sovereign control of national airspace (Paris International Air Convention)  19 departmental entry processing system (DEPS) 52–53 Descartes 59 DHL  2, 25, 43, 58, 68, 107–08, 111, 149 acquired by Deutsche Post  108 Express 160–61 Drayfous, E (Head of Air France, UK)  50 Dunleavy, H (commercial director, Malaysia Airlines) 141 e-commerce  85, 109, 137, 173 e-commerce and air cargo: problems for airlines 157–60 see also case studies IATA view on  160 issues to be addressed  159–60 price 158 time in transit  159 e-freight  2, 11, 26, 54, 55, 57–60, 64, 66, 130, 139, 151, 170, 176 electronic data interchange (EDI)  26, 52, 64 electronic data processing (EDP)  47–48 electronic monitoring systems  132, 145 El-Sayegh (Sovereign Speed)  71 emergencies/disasters 113–14 see also natural disasters flooded crops in UK (2014/15)  147 emissions trading scheme (ETS)  12, 148 Ennis, P  156 environment (and)  143–49 the issues  143–45 greenhouse gas and aircraft emissions  144–45 press coverage of incidents  144 Index night flights and environmental impacts  148–49 the response (and)  145–48 airports 146 alternative fuels  147 ICAO agreement on air and noise pollution 148 local produce  146 political influences  147–48 Envirotainer Training and Quality Programme for Good Distribution Practices 101–02 and Qualified Envirotainer Provider (QEP) programme  101 European Economic Community (EEC)/ Common Market  52 European Union (EU)  12, 167 Emissions Trading Scheme (ETS)  148 guidelines (EU343/01) on pharmaceutical shippers 102 Import Control System (ICS)  59 new ruling (2018) on cargo shipping  159 PRECISE (Pre-Department/loading Consignment Information for Secure Entry)  59 regulations on shipment data  58 Evans, O (formerly of TIACA)  9–17, 152 express and mail (and)  105–11 changes in trading patterns  107 integrators 107–09 see also DHL; Federal Express (FedEx); UPS and TNT market sectors  106 postal services  109–11 see also subject entry Federal Express (FedEx)  2, 25, 58, 108, 110, 111, 168 bid to buy TNT  109 and Memphis ‘Superhub’  43 Fédération Internationale des Associations de Transitaires et Assimilés (FIATA)  78, 79, 178, 179–80 Fernandes, Mr (Mercator)  152 figures AN 124 loading outsize cargo  B777 highly efficient cargo carrier  CCS-UK flowchart  56 early B747 freighter  24 F1 car loading by DHL  125 flying in supplies to besieged Berlin  21 loading heavy outsize shipment  32 pipeline roles  62 Schiphol airport top cargo hub  38 ULDs maximize cargo capacity  23 flowers  20, 90–92 see also cool chain business freight forwarder  26–27, 41, 77–86, 101, 102, 114, 118, 166, 169, 176 see also case studies associations and networks  79–80 development of the forwarder  78–79 freight market  58 see also air freight, growth of and air freight market today Freight Watch  133 fruit and vegetables  92–93 see also cool chain business the future as a challenge (and)  172–74 fighting off the wolves  171 new generation of managers  171–72 the future – views from  163–72 Alexis Sioris  164–66 Dieter Haltmayer  169–70 Enno Osinga  163 Fred Smith  168 Heiner Siegmund  166–68 Michael Sales  170–72 Ram Menen  174 general handling agent (GHA) (as)  55, 59–61, 63–66, 62 cargo agent  61 carrier (self-handling example)  61, 63 consignee 63 Customs broker/agent  63 and IT history  64–66 provision of warehouse facilities  63–64 shipper 61 Germany (and)  32, 40, 42, 61, 70, 147, 149, 176 Bundespost 106 Deutsche Post DHL  106 Frankfurt hub  25 GSSA Kales Germany GmbH  69 glossary of common air freight terms  183–84 the Hague Protocol  20, 176 Heavy Lift & Project Forwarding International magazine  118 Hellmann, C H  81 HERMES  65, 66 HM Customs and Excise (HMCE) (and)  50–55 CHIEF system  54 LACES system  50–52, 53, 54, 55 Hughes, G (IATA Cargo)  160 IBM  46–47, 48, 50 see also PARS and SABER India  57, 68, 92, 143 and GALAXY (Kale Consultants)  65 pollution/environmental emissions in  147–48 189 190 Index innovation and trends in air logistics (and)  151–61 agreement among industry  151–52 awards for innovation (report)  152–56 changing buying habits  see also subject entry and case studies Institute of Freight Forwarders/British International Freight Association (BIFA) 53 International Air Cargo Association, The (TIACA)  2, 12, 14, 17, 26, 77, 89, 177 Leadership Training  172–74 International Air Transport Association (IATA)  2, 26, 77, 89, 109, 145, 177–78, 180 Cargo 2000 initiative  49, 58, 79 cargo accounts settlement system (CASS)  78 Cargo division  178 Center of Excellence for Independent Validators 178 e-AWB multilateral agreement  176 e-freight initiative  130 e-freight programme  66 Enhanced IOSA  177 Live Animals Regulations (LAR)  115 Operational Safety Audit (IOSA)  177 Perishable Cargo Regulations (PCR)  102 on pipeline roles  61, 62 website 178 World Cargo Symposium (Los Angeles, 2014)  3, 168, 178 International Chamber of Commerce (ICC)  180 International Civil Aviation Organization (ICAO)  145, 176, 177, 178 adopts Hague Protocol (1955)  20 agreement on issues of air and noise pollution 148 and global emissions trading scheme  12 and Montreal Convention  20 International Commission of Air Navigation (ICAN) 175 International Federation of Red Cross and Red Crescent Societies (IFRC)  113 Global Logistics Service  114 International Panel on Climate Change (IPCC) reports  12 International Road Transport Union (IRU) 180 International Union of Railways (UIC)  180 internet technology (IT)  see cargo handling agents and the impact of IT Interport 85 see also Bram, W  Isaikin, A ((Volga Dnepr Group, Russia)  32 Jan de Rijk Logistics  72–73, 74, 87 Jones, I M  118 Kleijn, F  154–55 LACES (London Airport Customs Entry System)  50–52, 53, 54, 55 law – organizations/regulations governing international aviation  175–81 see also conventions national bodies  181 regulatory bodies  176–81 see also subject entry legislation (US): Patriot Improvement and Re-Authorization Act (2005)  128 less than trailer load (LTL) business model  70–71, 74, 110 Littel, J (Levarht)  93 Marriott, M (Hellmann Worldwide Logistics UK)  80 Mellin, R  152 natural disasters  133–35 earthquake (Haiti, 2010)  135 Eyjafjallajokull volcano eruption (Iceland, 2010)  69–70, 134, 168 Fukushima nuclear power station crisis (Japan, 2011)  135 Hurricane Katrina (2005)  134 Sichuan earthquake (China, 2008)  135 tsunami (Japan, 2011)  135 Osinga, E  163 Parenteral Drug Association (PDA)  102 PARS (programmed airline reservation system) 46–48 international (IPARS)  47 Perera, H ((Emirates Sky Cargo)  30–31 pollution and environmental emissions 147–48 postal services  109–11 China Postal Express & Logistics  110 Parcelforce Worldwide  110 Universal Postal Union (UPU)  111 and EMS Cooperative (Express Mail Service) 111 United States Postal Service (USPS)  110 Quick Cargo Services  169–70 Index Rasmussen, L (SAS Cargo)  151–52 Raynaud, J-C  123–24 recession  25, 60, 90, 96, 151, 173 of 2008/2009  3, 107, 129, 168 Red Cross/Red Crescent network  114 regulations Convention on International Trade in Endangered Species (CITES)  115 IATA Live Animals Regulations (LAR)  115 regulatory bodies  176–81 see also individual subject entries and United Nations Airports Council International (ACI)  180 Cool Chain Association (CCA)  180 Fédération Internationale des Associations de Transitaires (FIATA)  179–80 International Air Cargo Association, The (TIACA) 177 International Air Transport Association (IATA) 177–78 International Civil Aviation Association (ICAO) 178 Transported Asset Protection Association (TAPA) 180 World Customs Organization (WCO)  178–79 The Rise of Global Delivery Services 105 road feeder services (RFS) (and)  38, 67–76, 149, 167 the European market  see road feeder services: the European market example of RunAir  74–76 Ibertinsa  74–75, 76 Jan de Rijk Logistics  72–73, 74, 87 on the road  67–68 Sovereign Speed  74 its business strategy  71 survival of  74 Wallenborn 73 road feeder services: the European market (and) 69–76 road feeding as business saver  70–74 RunAir 74–76 Ruske, K-D (PwC Global Transportation and Logistics Leader)  83 Russia (and)  92, 93, 97, 101, 167, 168 Aviastar-SP factory, Ulyanovsk  119 pollution and environmental emissions  147–48 Volga Dnepr Group  32 SABER (semi-automatic business environment research)  46 Scholte, S (CEO of Jan de Rijk Logistics)  72–73, 87, 90, 100 Security Cargo Network  133 segmentation, process and product  26 Servisair  55, 60 Sigurffinsson, G (Icelandair)  70 Sioris, A  164 SITA  47–48, 59, 64, 65 Smith, F (founder of FedEx)  34 Smith, J (founder of the Fish Society)  94–96 Software AG (Switzerland)  65 and Cargo One  65 special air cargoes  113–25 animals 114–18 see also animals, transporting art craft/fine art  123–24 and charter brokers  114 fashion – textiles and clothing  121–23 and UK example  122–23 heavyweight freighters (and)  118–21 battle proven  119 lighter heavy cargo  120 oversized cargo  120–21 motor sport and F1 equipment  124–2, 125 Standard Consignment Security Declaration and Secure Freight  178 Standards and Recommended Practices (SARPs) 178 studies (on) Athens international airport (2010)  165 wide-body aircraft  27 supply chain(s) (and)  11–14, 25, 66, 73, 76, 88, 89, 91, 140, 151–52, 155, 156, 160, 166, 170–74 challenges of air cargo  136 cold chain and transport  98–99 global  37, 43 impact of health hazards on  135–36 management 77 realistic planning  170 road transit phase of  129 screening 136–37 security 178 and TAPA  180 temperature-sensitive 180 trucking 69 under pressure  5–6 weaknesses in  135 tables aircraft on order, March 2014  28 wide-body aircraft fleets  28 191 192 Index technology 26–27 Cargo Community Systems (CCS)  26 electronic data interchange (EDI)  26 terrorism (and)  130–33 9/11  58, 117, 130 alliances and groups combating crime  132–33 attraction of cargo as target  133 flight MH17  132, 141, 144 incidents of  131–32 solutions for  132–33 The International Air Cargo Association (TIACA)  2, 12, 14, 17, 26, 77, 89, 177 Leadership Training  172–74 TNT  25, 58, 107, 148, 169 Express 109 tonnages (diagram)  39 tracking and tracing  26 trade-inhibiting measures  168 Transported Asset Protection Association (TAPA) 132 Truman, President H  21 Tyler, T (CEO, IATA)  2, 172 Federal Aviation Administration (FAA)  40, 132, 145 Federal Emergency Management Agency (FEMA) 134 highway system  67–68 hurricanes in  134 military use of civilian service providers of freighters (Civil Reserve Air Fleet – CRAF)  29 MS system  59 pollution and environmental emissions  147–48 Post Office Department: aircraft for transportation 19 postal service (USPS)  110 shipment data regulations  58 United States–United Kingdom Bermuda Agreement (1946)  176 unable to locate (UTI)  60 UNEDIFACT 55 see also cargo handling agents unit load device (ULD)  23, 48, 68 United Kingdom (UK) and animal welfare (DEFRA)  116 Civil Aviation Authority (CAA)  40 National Data Processing Service (GPO)  50 Royal Mail Group  110 United Nations (UN) Commission on International Trade Law (UNCITRAL) 179 Conference on Trade and Development (UNCTAD) 179 Economic and Social Council (ECOSOC) 179 United Parcel Service (UPS)  25, 43, 58, 109 United States (US) (and)  29, 61 animal welfare requirements (USDA)  116 Warburg, D  75 White, B (computer expert)  54 World Association of Zoos and Aquariums (WAZA) 117 World Cargo Symposium (WCS)  3, 168, 178 The World Civil Aviation Authorities Directory 181 World Customs Organization (WCO)  178–79, 180 World Economic Forum (WEF)  140 World Health Organization (WHO)  135–36 advice on world health protection/website  136 global responsibility of  135 World Trade Organization (WTO)  180 Wraight, S  157, 172–74 van de Burg, K  153 van Doesburg, J  152 van de Wouw, N  152, 155–56 Vertannes, D (global head of Cargo, IATA)  3, 57 XOPS (electronic monitoring system)  145 Zelmer, S  75 193 THIS PAGE IS INTENTIONALLY LEFT BLANK 194 THIS PAGE IS INTENTIONALLY LEFT BLANK 195 THIS PAGE IS INTENTIONALLY LEFT BLANK 196 THIS PAGE IS INTENTIONALLY LEFT BLANK ... restricted There is notably one version of the Antonov AN -2 2 5 in the air capable of lifting up to 25 0 tonnes of cargo It is a stretched version of the AN- 124 freighter – and as the world’s largest air. .. versions of the Ilyushin IL-76 and a few old ‘rust bucket’ aircraft like the AN- 12 and AN -2 6 freighters that can still offer lift into regions where the environmental issues come well down the list of. .. of aircraft capable of carrying 25 –30 tonnes in their bellies has had a major impact on the price and speed of air freight (For details of the e -freight system visit www.iata.org/e -freight. ) The