i Aviation Logistics ii THIS PAGE IS INTENTIONALLY LEFT BLANK iii Aviation Logistics The dynamic partnership of air freight and supply chain Michael Sales iv Publisher’s note Every possible effort has been made to ensure that the information contained in this book is accurate at the time of going to press, and the publisher and authors cannot accept responsibility for any errors or omissions, however caused No responsibility for loss or damage occasioned to any person acting, or refraining from action, as a result of the material in this publication can be accepted by the editor, the publisher or any of the authors First published in Great Britain and the United States in 2016 by Kogan Page Limited Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms and licences issued by the CLA Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned addresses: 2nd Floor, 45 Gee Street 1518 Walnut Street, Suite 1100 London EC1V 3RS Philadelphia PA 19102 United Kingdom USA www.koganpage.com 4737/23 Ansari Road Daryaganj New Delhi 110002 India © Michael Sales, 2016 The right of Michael Sales to be identified as the author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988 ISBN 978 7494 7270 E-ISBN 978 7494 7271 British Library Cataloguing-in-Publication Data A CIP record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Names: Sales, Michael, author Title: Aviation logistics : the dynamic partnership of air freight and supply chain / Michael Sales Description: London ; Philadelphia : Kogan Page, 2016 | Includes bibliographical references and index Identifiers: LCCN 2015051180 (print) | LCCN 2016000907 (ebook) | ISBN 9780749472702 (paperback) | ISBN 9780749472719 (ebook) Subjects: LCSH: Aeronautics, Commercial Freight | Business logistics | BISAC: BUSINESS & ECONOMICS / Distribution | BUSINESS & ECONOMICS / Industries / Transportation | BUSINESS & ECONOMICS / Production & Operations Management Classification: LCC HE9788 S253 2016 (print) | LCC HE9788 (ebook) | DDC 387.7/44 dc23 LC record available at http://lccn.loc.gov/2015051180 Typeset by Graphicraft Limited, Hong Kong Print production managed by Jellyfish Printed and bound by CPI Group (UK) Ltd, Croydon, CR0 4YY v Co n t e n t s Foreword by Ram Menen viii Welcome to Aviation Logistics x 01 Air cargo – trying harder 1 Supply chains under pressure 5 Air cargo’s strengths 6 Modal shift 7 02 The world of air cargo, Oliver Evans, former TIACA 9 Profit 10 Planet 12 People 13 03 Air cargo history 19 Regulations and agreements 19 The Berlin airlift 21 The growth of air freight 22 The air freight market today 27 Conclusions 33 04 Airport connections 37 Globalization 37 Environmental pressures 38 Airport types 40 Integrators 43 Summary 43 05 Cargo handling agents – the impact of IT 45 Early days 45 Airlines at the start of computer technology 46 Change factors 49 The role of the General Handling Agent 59 Conclusions 66 vi Contents 06 Road feeder service 67 On the road 67 The European market 69 Conclusions 76 07 Freight forwarder 77 The development of the forwarder 78 Associations and networks 79 Case study: Hellmann Worldwide 80 08 Cool logistics 87 The cool chain 87 Creating standards 89 The cool chain business 89 Case study: The Fish Society goes global 94 Case study: Live lobster Clearwater perspective 97 Conclusions 103 09 Express and mail 105 Market sectors 106 Changes in trading patterns 107 Integrators 107 Postal services 109 Conclusions 111 10 Special air cargoes 113 Charter brokers 114 Animals 114 Lift off for heavyweight freighters 118 Flying fashion 121 Art craft 123 On the grid 124 Conclusions 125 Contents 11 Cargo security and risk 127 Crime 127 Terrorism 130 Natural disasters 133 Health hazards 135 Cybercrime 140 Corruption 140 Conclusions 141 12 Environment 143 The issues 143 The response 145 Air freight’s extra burden 148 13 Innovation and trends in air logistics 151 The industry leaders all agree 151 Changing buying habits 156 Case study: Helicopter delivery – what next? 160 14 Views on the future 163 Enno Osinga 163 Alexis Sioris 164 Heiner Siegmund 166 Fred Smith 168 Dieter Haltmayer 169 Michael Sales 170 Stan Wraight 172 Ram Menen 174 15 The law – organizations and regulations governing international aviation 175 The Warsaw Convention 175 Regulatory bodies 176 Glossary of common air freight terms 183 Index 185 vii viii Fo r e w o r d H aving been involved in aviation and especially in the air cargo business, I can say that I have been fortunate to witness the evolution of the cargo transportation and logistics industry The changes to the current scenario really started from the early 1990s when the science of supply chain management began to develop Globaliza tion of production and markets placed the focus on finding better production and cost efficiencies Logistics and transportation be came critical to gaining this end and there was a realization that the higher cost of air cargo adds to attaining better cost efficiency within the supply chain All aspects of the related activities and cost of capital, combined with shorter shelf life of commodities, are affected by the background evolution of the related technology I have also had the good fortune to have been around while this change was taking place and being able to contribute and drive some of those changes On the air transportation side, getting involved in setting up Emirates and Emirates SkyCargo was a real vehicle for driving the changes in how we looked at air cargo transportation and building up services based on the fast-changing requirements of markets and the customers It was a proud moment to see that the airline became the largest air cargo airline in international operations I have also been pleased to be involved in founding The International Air Cargo Association, TIACA, which was able to bring together all the elements of the supply chain These include the transportation/ logistics operators, support entities such as the aircraft and other equipment operators, regulators, handlers, various industry associations and organizations and many more entities Our aim was to create a common voice to help evolve and support commerce as efficiently as possible, as we must never forget that successful commerce depends on the logistics and transportation industry Foreword Future prospects The 21st century is a whole new era and a whole new world It is vital that all aspects of the industry embrace the future and let the future drive today It is equally critical that all are better aware and equipped to deal with the changes and challenges The better aware one is, the better equipped one is to not only manage the changes, but also to drive the evolution of our business Different commodities require different transportation requirements Gone are the days of one size fits all Changes in needs are happening in real time these days The 3D printing is going to bring in a whole plethora of changes to the manufacturing and consumption process This will trigger changes in many other areas that could create some challenges, but also more new op portunities We tend to operate in uncharted territory more often than ever Markets are more volatile and economic cycles tend to linger longer with higher frequency Those who are able to anticipate change and support the change effectively will be the winners Developments in the field of the next generation transistor, called the ‘memristor’ will allow the information tech nology field to free itself from its traditional dependence on the two-level binary codes to multiple levels, opening up innumerable possibilities, and the evolutionary and the disruptive changes will, combined with the develop ments in the application of graphene, change the shape and size of electronics and cargo as we know them in the future, giving rise to further miniaturization Life cycle of items will also become vastly shortened The highest growth in cargo will be e-commerce-related and those who effectively control the last mile delivery will be the winners of tomorrow It is my privilege to introduce this book, Aviation Logistics The authors bring to the fore the various realities of air cargo business and its role in keeping the wheels of commerce rolling This book is a compilation of looking at various aspects of our business by experts in the field, which guarantees its authority It is not only very informative and educational but is easy to read and understand I can recommend it highly for the layperson as well as academia Aviation and logistics are a great evolving industry to make a career in and as the world becomes smaller and more accessible, they will grow and diversify Ram Menen Former Head of Emirates SkyCargo and one-time president of TIACA, now retired ix 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 ... essential All these different elements constitute sustainability for the air cargo industry The transport of goods and mail was the first goal of the airline The World of Air Cargo industry: the pioneers... from the British Library Library of Congress Cataloging-in-Publication Data Names: Sales, Michael, author Title: Aviation logistics : the dynamic partnership of air freight and supply chain. .. 02 The world of air cargo, Oliver Evans, former TIACA 9 Profit 10 Planet 12 People 13 03 Air cargo history 19 Regulations and agreements 19 The Berlin airlift 21 The growth of air freight 22 The