cargovision-0307

cargovisionQUARTERLY MAGAZINE AIR FRANCE CARGO-KLM CARGO VOLUME 22 ˆ NUMBER 30 ˆ SEPTEMBER 2007

E-Freight LivesGuided MissileMr. Clockwork

AFFAIRSOF THE CORPS

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Many of us in the airfreight business believe that greater cooperation would lead to more competition and betterservice for our customers. In other words, it is paramount that regulators continue to approve common industrymechanisms that facilitate air transport and leave carriers to develop their own competitive advantages for thebenefit of cargo customers.

Within the immunities granted by the US Department of Transportation and in compliance with EU Treaty, IATAresolutions create common rules, mechanisms and practices that enable carriers to compete equally for thebenefit of customers. This forces them to differentiate their offerings through individual achievement and effortssuch as geographical coverage, service levels, cargo products and pricing strategy. These elements are in place.

Where regulators could help, not only the airfreight business but also their national economies, is to acknowledgethat the air cargo business is not like passenger transport; rather, it is a service offered as part of an internationalvalue chain and must be facilitated in order for its customers to thrive. To operate efficiently, the chain needs thecooperation of groups inside and outside the industry. Airfreight transport needs airport capacity as well asexemptions for night flights and trucking services. Better partnerships between security and customs andbetween carriers and forwarders could mitigate the delays and costs of the current security regime whileimproving its overall effectiveness. There is also a question of whether a special security insurance program isneeded to protect the commercial entities and keep them involved in securing air cargo.

These issues concern us here at AF-KL Cargo and are also on the agendas of the Association of EuropeanAirlines, IATA, FIATA and other industry groups. We report on some of them in our current issue of Cargovisionand examine other important subjects as well. There is a new organization, the Air Cargo Security Industry Forum(ACSIF), which is jointly led by IATA and FIATA, which hopes to simplify and harmonize the confusion prevalent intoday’s security landscape. Writer Ian Putzger gives us a status report on two current efforts to improve theexchange of electronic air waybill documents: IATA’s e-freight program to reduce the paper flow and the messageimprovement program. In a similar vein, Tony Carding reports on how companies are using Cargo 2000 tomonitor and manage quality and improve the efficiency of their air cargo service.

Marcia Macleod asks Clecat board member, Jean-Pierre Ennebick, how the European forwarders’ lobby organi-zation puts the views of its member before the European Commission. Ben Darnell, managing director of cargoat Delta Air Lines, describes his busy week helping colleagues prepare to emerge from bankruptcy. Our residentindustry analyst, Dick van den Berg tallies the latest figures from IATA in order to decide whether the large numberof wide-body aircraft on order will create more capacity than could be healthy for airfreight operators.

Michael Westlake takes us to Vietnam where we learn that a booming airfreight market is creating pressure onthe government to liberalize the current monopoly on ground handling, to allow more private airlines to competewith government carrier Air Vietnam and privately owned Pacific Airlines, and to allow foreign companies to ownup to 49% in joint ventures.

Happy reading.

Sincerely,

Jean-Luc ServantGeneral Manager Industry Affairs, Air France Cargo-KLM Cargo

AFFAIRS OF THE CORPS

cargovision editorial

© Laurence Godart


4 E-FREIGHT LIVESTwo efforts to improve the exchange of electronic air waybill documents are currently underway: IATA’s e-freightprogram to reduce the paper flow and the message improvement program to clean up those pesky electronicmistakes. An update.

14 GUIDED MISSILEIn addition to serving as SVP of Southern Europe and Africa at Geodis Wilson, Jean-Pierre Ennebick is amember of the board of Clecat, the European forwarders’ lobby organization representing the French forwarderorganization, TLF. He is chairman of Clecat’s Airfreight Committee and vice chairman of its Maritime and AirLogistics Institute. We asked him what issues concerned Clecat and how they put their views across to theEuropean Commission.

16 MEASURING QUALITYMaintaining service quality has become vital to companies at all stages of the transportation chain. IATA set upthe Cargo 2000 industry group in 1997 to monitor and manage quality and improve the efficiency of air cargo.How well is it working?

19 MR. CLOCKWORKA ship stops for a couple of hours in Shanghai, Buenos Aires or San Francisco, offering a narrow time frame ata destination far, far away. To hit this mark with a package of spares is the job of Wolfgang Kaffka. How does hedo it?

20 THE CONSTABLE’S CONUNDRUMNothing will guarantee that every shipment on every flight is safe. But what is an acceptable risk? How can it beachieved? Individual authorities with differing attitudes and levels of risk tolerance have published varyingresponses to these two questions. A new organization jointly led by IATA and FIATA hopes to simplify andharmonize this landscape.

24 TRANSPORT EXPO 2007With 47,000 visitors and 1,580 exhibitors, Munich’s Transport Logistic trade fair has become one of the largestgatherings of logistics professionals in the world. For people in the airfreight business it offers a wider selectionof exhibits, customers and partners than the biannual TIACA forums.

08 NEWS & DATELINES22 BEN DARNELL26 COUNTRY FILE: VIETNAM28 MARKET MONITOR: OVERSUPPLIED30 POSTSCRIPT: HE’S BAAACK31 CARGOVISION INFORMATION

COVER IMAGE The freight hub G1XL at Charles de Gaulle© Laurence Godart

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Wolfgang Kaffka, page 19

Transport Logistic 2007, page 24

Supply-chain security,page 20

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E-FREIGHT LIVES


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Two efforts to improve the exchange of electronic air waybill documentsare currently underway: IATA’s e-freight program to reduce the paper flowand the Message Improvement Program to clean up those peskyelectronic mistakes. Here’s a status report.BY IAN PUTZGER

� “You have to enter the room with an open mind,”says Hans van Elk, director of airfreight product devel-opment in the Netherlands for DHL Global Forwarding.Every Tuesday, he charts a course into unknown terri-tory when he meets with members of the workinggroup for the e-freight pilot program in the Nether-lands. It is one of five markets where operational trialswill begin in December to test the standards andprocesses that will be used to implement e-freightglobally. E-freight is one of five initiatives that IATA hasproposed to simplify the airline business. The plan is tofree the air cargo industry of paper, thereby loweringcosts and operating overhead. Most participants viewthe trials with a sense of urgency. “If we can’t do e-freight, we will not be able to grow in this industry andservice quality won’t improve,” Mr. van Elk says.The initiative’s proponents say that e-freight will helpmove goods and documents faster and improveservice by giving operators the confidence to extendcut-off times. IATA says that eliminating paper from theairfreight process can save the industry $1.2 billion ayear by reducing several costly activities: data entryand amendment, duplicate message handling, anderrors on customs submissions.IATA chose the Netherlands as one of five markets forits trials based on its legal, technical and administrativereadiness. The others include Canada, Hong Kong,Singapore and the UK. For benchmarking, the testswill include Sweden and Mauritius.

“Nearly all of the major forwarders are participating,”says Marc Aupers, IATA’s implementation manager forthe Netherlands, “either in the steering group or theregular working group.”“Most of these forwarders will concentrate on a singletraffic lane linking two of the pilot markets,” Mr. Aupersadds. However, AF-KL Cargo is planning to introduce

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trials simultaneously in all markets involving the pilotand DHL Global Forwarding has opted for the wholegamut from day one. “We want to be an earlyadopter in this,” Mr. van Elk says.For all participants, the volume of messaging will berelatively modest at the outset of the test, predictsJan Vreeburg, chairman of the AF-KL Cargo busi-ness working group in the Netherlands. It willincrease gradually over time and this will help thedevelopers deal with two important questions: howto scale up the activity and how to expand the scopeof the program throughout the industry.

Most of the actors are confident that the trials willsucceed. The working groups have examined theirexisting processes and developed a matrix of thosestill to be introduced. After analyzing the differences,the results have been encouraging. “We did not iden-tify any significant gaps consisting of hurdles thatcannot be overcome,” Mr. Aupers says.However, one legal question hovers over theprogram: how can an electronic message replace apaper air waybill that serves as a contract betweentwo parties? While it is still unresolved, at least thetechnological issues apparently pose no seriousobstacles.“For the Netherlands, we have the infrastructure,” Mr.Aupers adds. “The electronic messaging definitelyneeds improvement, but we don’t need informationtechnology providers to develop new systems forthis particular market. We already have the ability totransmit e-documents to customs.”

cargovision E-FREIGHT LIVES

Kuehne + Nagel is deeply involved in the e-freightprogram and is concentrating its activities during thepilot on trade between Canada and the UK. “Theroad seems smooth here,” says Hardy Preuss, thecompany’s manager of processes and systems,global airfreight carrier integration. “Gap analysis ofthe working group has not revealed any big differ-ences between current and future processes.”

ENTRÉEIn Paris, AF-KL Cargo is currently focusing on a newcargo community system under development. Thiswill facilitate the introduction of e-freight, says Jean-Luc Servant, who is responsible for industry affairs atAF-KL Cargo. Another important area for AF-KLCargo in France is the message improvement pro-gram (MIP). This initiative is designed to improvemessage quality and penetration, establish a mes-sage management methodology and deliver airlinescorecards and stakeholder performance tables. Itoriginated two years ago after Northwest AirlinesCargo found excessively high error rates while test-ing electronic messages for master and house airwaybills and house consolidation manifests, thethree documents that accompany 90% of its cargoshipments.

Figures from IATA confirmed that over three-quartersof the air waybills transmitted electronically are eitherincomplete or incorrect. “We correct almost all ofthem,” AF-KL Cargo’s Mr. Vreeburg says. “We must.

"It would beworthwhile toextend thepaperfreeconcept up thetransportationchain"


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And I should mention that these errors occur in boththe forwarder’s and the airline’s processes.”All of the carriers in the e-freight program are submit-ting their data to IATA and comparing their findings inorder to identify problems and develop solutions.With a consolidated list of issues in hand, they canvisit individual forwarders and discuss the need forspecific changes, says Jim Friedel, president ofNorthwest Airlines Cargo.

FLYS BE GONETraxon has been working with several carriers todevelop their MIP capability, including AF-KL Cargo.The majority of errors tend to cluster in particularsegments, so finding fixes can eliminate lots of prob-lems, says Felix Keck, president of the IT provider.The interface between man and machine is a majorsource of error, Traxon found. Mr. Keck emphasizeshow important it is to have strong management forthis program support in order to reduce errors andimprove accuracy. Without this commitment, qualityis likely to deteriorate, he warns.

One particularly onerous source of error identified byKuehne + Nagel and Northwest Cargo was theaddress field. Local place names and variations oftendon’t coincide with the formats required in the elec-tronic document. For example, the cargo complexon the south side of Frankfurt airport has buildingnumbers but no street names. This presents adilemma for data entry, says Mr. Keck. The rate fieldin the electronic air waybills was another element thatemerged as a common source of error, mainlybecause rate codes vary from carrier to carrier.However, after Northwest shared the results of earlytests with Kuehne + Nagel, the error rate wasreduced almost to zero, Mr. Preuss recalls. “We willnever reach 100%, but we can get very close. Wecan also get detailed information back on faultymessages to help us see what went wrong.”The technology companies involved with e-freightare concerned with translating the error codes intoterms that people can understand without needing ahuge manual, Mr. Keck says. The job involvesbuilding the algorithms to do this translation.

HICCUPSThe development of the e-freight program hascaused tremendous headaches for airlines whenthey receive duplicate air waybills. A single shipmentcan sometimes trigger 40 or more waybills. Thesystem is designed to send an electronic submissionto the airline whenever anyone at the forwarder printsthe air waybill. If someone in the forwarder’s officewants to print another copy or needs to make acorrection, the action sends another electronicwaybill to the airline. Forwarders could ask their staffto print fewer copies, but they will still have to makecorrections, for instance when someone in the ware-house discovers a piece missing from a shipment.“We should try to create some sort of parking lotwhere submissions are parked and only the lastversion goes to the airline,” says DHL’s Mr. van Elk.Another problem identified by K+N is the disappear-ance of electronic messages into a black hole, saysMr. Preuss. “There is usually no confirmation thatmessages have reached their intended destination.Today, I send and hope that the message arrives atthe other end. Some systems have handshakes thatconfirm the receipt of data, but this is not end-to-end. We need something that tells us right awaywhether there is a problem.”

LE DIGESTIFDespite such issues, most people involved in the MIPinitiative are confident that the objectives can bereached without fundamental changes to existing ITinfrastructure. However, that is not to say that theadoption of e-freight will be cost-free.“We expect there will be a huge amount of savings,”says Traxon’s Mr. Keck. “But it is not clear yet whatamount of investment will be necessary. Informationtechnology providers will have to build their solutions,and the carriers and forwarders will have to makeadjustments to their systems.”DHL’s Mr. van Elk looks forward to including shippersin the e-freight program. Traxon’s Mr. Keck alsowelcomes the idea, “Despite any technological chal-lenges, it would be worthwhile to extend the paper-free concept all the way up the transportation chain.”Aleks Popovich, global head of cargo for IATA,emphasizes that the e-freight drive is not confined tothe five geographical pilot programs and mustexpand, where possible, around the world. IATA is already planning a second wave of e-freightpilot programs. It will announce them at the end of2007 after it has assessed the first batch in detail.IATA is eager to welcome US carriers into the initia-tive. Through its US subsidiary, Cargo NetworkServices, it intends to work towards this goal incooperation with the US government, customsadministration, and the air cargo supply chain.

“If we can’t doe-freight, we willnot be able togrow in thisindustry andservice qualitywon’t improve”



Weddings & funerals

MOSCOWAlexander Lebedev, one of the world’s 200 richest men, knows a goodstock deal when he sees one. He decided Alitalia wasn’t one of them. Mr.Lebedev holds 30% of Aeroflot shares through his National ReserveCorporation. Aeroflot went into the deal with backing from Italian bankUniCredit. However, the Russians soon said that Alitalia’s price was toohigh. Moreover, they were not getting access to the financial informationabout Alitalia’s commercial and operational performance they needed toformulate a proposal to successfully restructure the business. In walkingaway, Aeroflot said, “The conditions and requirements outlined for theprivatization process would significantly limit the ability of Aeroflot toimplement what Aeroflot believes to be the necessary measures to re-launch Alitalia.

BEIJINGChinese companies are on a selling spree, urged by their government toform international cargo joint ventures in support of the country’s surgingexports. The Chinese airlines are partnering with the crème of the interna-tional airfreight companies and, in essence, buying top managementexpertise. As China’s airlines become more organized, they will eventuallycompete more successfully with their Western counterparts on interna-tional routes. The domestic business and the financial interests are compli-cated, but here was the situation at press time:

First, Shenzhen Airlines and Lufthansa have launched Jade Cargo.Second, China Southern is talking with AF-KL about a joint venture andexpects to join SkyTeam by the end of the year. It expects to have thelargest cargo fleet among the Chinese carriers by 2010, by converting sixof its A330s from passenger to freighter configuration, buying six newB777 freighters and continuing to fly its two B747 freighters.

Third, China Eastern is trying to sell a quarter interest to Singapore Airlines.CEA’s deal with Singapore Airlines would give SIA greater access toShanghai in exchange for US$100s of millions in new stock shares to be

issued by CEA. Air China wasn’t happy to haveanother formidable airline in its backyard, CathayPacific already flies to Shanghai, and to thwart the bid,bought nearly 10% of CEA’s share. We can’t tell yetwhether the strategy has succeeded.

Fourth, Air China says it will start a joint venture cargoairline with Cathay Pacific, both carriers own 17.5% ofeach other’s stock. However, CITIC Pacific must sell its25% of a mainland cargo joint venture with Air Chinato enable Cathay Pacific to by shares.

MONTREALAfter reducing its Shanghai-Toronto freighter service tothree days a week from five days, Air Canada finallydecided to cancel the service in June and return theleased MD-11 freighter to World Airways. It intends tocontinue daily passenger flights with 90 tons of cargocapacity per week to Shanghai. Claude Morin, AirCanada Cargo president cited the recently launchedtranspacific freighter flights by UPS, Polar, ShanghaiAirlines and Yangtze River Express that had slashedyields.

TIANJINChinese aviation authorities approved the launch ofGalaxy International Cargo Airline this summer. TheTianjin-based cargo airline is a joint venture capitalizedwith US$65 million by Sinotrans (51%), Korean Air(25%) and minor shareholders. The new cargo airlineis expected to begin services with one B747 freighterand two A330 freighters from Korean Air, but then fundits own aircraft by the second year. It will apply foroperating licenses and is expected to concentrate onroutes into northern China, which are of particularinterest to the Koreans.

cargovision news around the world

Our quarterly review ofindustry news keeps youabreast of developments in key sectors around the world.


MIAMICenturion Air Cargo caught a break in May when Alitalia signed them up asa partner in connection with the start of its own freighter services betweenMilan and Miami. Centurion was to feed eight freight destinations in Centraland South America from Miami using its six DC-10 freighters. In June,Centurion returned two frequencies granted by the US DOT for a Miami-Quito-Quayaquil-Miami service because it could not operate the routeeconomically without the traffic support of an intermediate stop. Presum-ably, the rest of the arrangement is still intact.

Elsewhere in Miami, ASTAR Air Cargo sold 49% of its minority equity and24.9% of its voting interests to DHL. In 2003, DHL sold ASTAR after USregulators limited the foreign ownership of airlines and its parent, DeutschePost World Net, wanted access to US markets. UPS and FedEx bothcomplained that DHL was ASTAR’s largest customer and still controlled it.DHL won in court and is now buying back the cargo airline. ASTAR is alsotalking about acquiring ABX Air Inc. In another transaction, DHL bought 49%of Polar Air Cargo’s equity and 25% of its voting rights for US$150 million inJune. The transaction also gives DHL Express guaranteed access to Polar’scapacity on its six B747-400 freighters for 20 years and to additionalcapacity available through ACMI leases from Atlas Air. DPWN is on a roll.

LOMEEuropean Cargo Services, the network of general sales agents boughtshares in Africa West Cargo Airline in June. Capacity will be availablethroughout West and Central Africa on the carrier’s three 18-ton AN-12freighters.

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Commodities

STAMFORDShipments of personal computers are forecast to grow11% this year, according to Gartner Inc. Shipments ofsemiconductors, used in many consumer electricalproducts, also increased by 2% this spring, accordingto the Semiconductor Industry Association in SanJose. These two indicators suggest that near-termprospects are good for companies that provide logis-tics, express and air cargo services to these industries.

WILTSHIREEven though logistics is now recognized as a decisivecompetitive tool in the automotive industry, logisticsproviders with the big carmakers will likely encounterexceptional difficulty despite opportunities that exist inthe developing markets, says Thomas Cullen, senioranalyst for Transport Intelligence. Mr. Cullen’s latestreport on Auto Logistics was published in June anddescribes a large, sophisticated and complexsegment of the logistics business. It is characterized insome areas by slow growth and meager profits and inothers by explosive opportunities and uncertain reali-ties. For example, manufacturers located in NorthAmerica, Europe and Japan expect less than 3%growth and relentless pressure to cut costs. Whilethose in China and Russia offer huge opportunities butdifficult environments for logistics operators to begin

Gateways

TEL AVIVCompetition is intensifying at Israeli airports, causingthe nation’s airport authority to approve additionalfrequencies last year. Air France, Austrian, Iberia,Continental and Trans Aero received approval toincrease frequencies; Delta, Hapag Fly and Air Balticstarted new services; and Royal Jordanian and KoreanAir began new cargo operations. C.A.L, Israel’s cargocarrier saw its market share drop 1 point to 67% in2006 from a year earlier.

MEXICO CITYMexican airlines are always looking for additionalaccess to the US market. Aeropostal Cargo de Mexicoreceived US DOT approval to operate DC-8 freightercharters between Mexico and the US with beyondrights. Aero Union applied to begin A300 freighterservice from Monterrey to Chicago.

Beijings international airport



return on their investment and not the nature of theenterprises. However, the EC has not stated its reasonfor reviewing the transaction.

BERLINGerman Chancellor, Angela Merkel, has indicated thatthe government will not enable big US equity funds toplay a strong role in large private German companieslike Deutsche Post World Net, Deutsche Telekom andDeutsche Bahn. This seems to indicate that thegovernment will keep some control over these firmsand their subsidiaries that play in the airfreightindustry: DHL and Schenker.

HONG KONGSinotrans is restructuring its capital base andrealigning its corporate strategy. It is negotiating tosells shares of its Excel-Sinotrans freight forwardingjoint venture to Deutsche Post World Net, whichalready owns half of the business. It is also seeking toform a US$7.2-billion shipping and logistics venturewith CCNS Group while at the same time transferring13 of its subsidiaries in Shandong into its Qingdaologistics subsidiary, which is located in Shandong butbased in the Qingdao free trade zone.


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MOSCOWIn early June, there was some confusion about whether production of theAN-124 would be delayed in favor of re-establishing the Il-76 productionline in response to an order for 50 of the latter aircraft from China. Subse-quently, at the Paris Air Show, the Russian and Ukrainian Interstate AviationCommittee presented a Supplement to Aircraft Type Certificate to confirmthat the Ruslan AN-124-100M-150 freighter aircraft modification complieswith all international regulations and aircraft safety requirements certifica-tion tests. The new version has a useful load of 150 tons, higher takeoffand landing weight, and longer operational range. More AN-124s would begood news because Russian airfreight carriers have been fighting over theDefense Ministry’s 18 AN-124s for some time. The ministry may resolve theissue and dispose of the fleet by year-end. It is currently operated by threeairlines: Volga-Dnepr, Antonov Aviation Scientific and Technical Complexand Polet Airlines. But hedging its bets, Volga-Dnepr ordered 3 IL-76TD-90VD freighters and opted for 10 more in June.

ULYANOVSKAlso in July, Chinese authorities issued a local type certificate for a modern-ized cargo version of the Tu-204 family known as the Tu-204-120CE. It isbuilt for China by the Aviastar SP, one of the largest manufacturers of aero-nautical engineering in Russia. The new medium-range cargo aircraft,powered by Rolls-Royce engines and equipped with English languageinstructions for pilots, is the first Russian aircraft built for export. It has arange of 3,000 km carrying 27 tons and 7,400 km with 10.5 tons.

CHICAGOBoeing has changed course since March when it decided to shut down theC-17 supply chain. After studying how a prolonged suspension woulddisrupt its supply chain and raise production costs, Boeing will now extendthe cargo jet’s production, possibly past 2009, and restart the supply chaineven without a new Pentagon contract. The Air Force is not pushing hardfor additional C-17s, meaning that Boeing will soon need internationalorders and US promises to keep the line open.

Intermediaries

BRUSSELSThe EC said just before press time that it would investigate the plannedtakeover of US freight forwarder EGL by Ceva Logistics (formerly TNTLogistics) in the Netherlands.Ceva is owned by Apollo Management L.P. of New York, which has overUS$16 billion in investments worldwide. The number of private equity firmsbuying into big business has sparked fears that they are interested only in a

St. Basil’s Cathedral, Red Square, Moscow


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Environment

LONDONThanks to John Vidal, environment editor for TheGuardian, the world now knows that ships contributetwice as much carbon dioxide as aircraft. Ships emit600 to 800 million tons of CO2 annually. That is about5% of the total and twice as much as the industry hadbeen claiming. Moreover, their contribution couldincrease by 75% in the next 15 years if nothing is doneabout them. Mr. Vidal based his article on reports fromBritish Petroleum and researchers at the Institute forPhysics and Atmosphere in Wessling. The new datacome as a relief to the aviation industry, which hasbeen taking the brunt of criticism in the climate changedebate for its miserly 2% contribution. Shipping emis-sions have risen nearly as fast as those from aviationduring the past 20 years, but governments and envi-ronmental groups have ignored them. No more.

Industry

WASHINGTONSkyTeam members Air France, Alitalia, CSA CzechAirlines, Delta Air Lines, KLM and Northwest Airlinesfiled an application with the US DOT in June seekingantitrust immunity on transatlantic routes. Deltacurrently has antitrust immunity with Air France, Alitaliaand CSA while Northwest has antitrust immunity withKLM. The carriers are attempting to take advantage ofroute opportunities made possible in the EU-US openskies accord that goes into effect next year. Althoughthe International Air Cargo Association officiallywelcomed the open-skies agreement, many people inthe cargo industry believe it sacrificed the opportunityto liberalize the movement of cargo.

HAVANACuba and Russia signed an air services agreement inJuly. It will enable the two countries to develop tourismas well as passenger and cargo service betweenthem, and provides an opportunity to intensify theirrelations.

MOSCOWIn July, Aeroflot-Cargo joined the Multilateral InterlineTraffic Agreements (MITA) that operates under theaegis of IATA. Aeroflot-Cargo says it is also going tojoin IATA.

Carriers

ATLANTADelta Air Lines emerged from 19 months of bankruptcy in April after cuttingits annual costs by US$3 billion and its staff by 6,000. It also completed aninternal transformation one year ahead of schedule and accepted aUS$2.5 billion loan from 10 banks. When people hear bankruptcy, theytend to think “terminal illness” when, in fact, a Chapter 11 reorganization,such as Delta’s, is more like calling a timeout so a child can get its acttogether. A healthier Delta is good news for airfreight shippers. More thantwo years of cost cutting and job losses hit the cargo department harderthan many other parts of the company, says to Ben Darnell, managingdirector of cargo. “Now the emphasis is on the investments we are makingin the cargo product. While we were restructuring, we made the case toour senior leaders that it was time to invest in cargo in order to increase thevalue of Delta’s business.

“We added 59 cargo positions since March and can now do many of thebasics that we couldn’t before,” Mr. Darnell continues. “Our new flightcontrollers are getting cooperation from divisions that didn’t previously seecargo as their responsibility. We explained how they could help improve theproduct and drive revenue growth.”

Some of the other new people include managers to define and overseeprocedures, flight controllers to monitor bookings and lane segments andprioritize freight movements, analysts to study capacity and revenueissues, field leaders that work with warehouses, and more sale reps. Thecargo division now has about 650 people, who are supported by newcargo management systems for revenue and capacity.


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MOVING ON World

Jack W. BoisenMr. Boisen was elected chairman of the InternationalAir Cargo Association for a two-year term at theannual general meeting of TIACA held in Cologne,Germany. He is vice president of cargo for ContinentalAirlines and has served on TIACA’s board of directorsfor more than seven years. Mr. Boisen is chairman ofthe Air Cargo Council of the Air Transport Association,a member of the CNS Advisory Board, and a memberof the board of directors of the Postal Supply Council.

Ahmed Mohamed Abdulla Janahi Mr. Ahmed Janahi is the new vice-president, groundservices of Gulf Air. He has worked at Gulf Air for 24years, first joining the company in 1983 to take care of

“We’re now in a much more competitive position,” Mr. Darnell says. “Ourexecution is better now that we have more people and a new organiza-tion that oversees all cargo operations, sales and marketing. Bankruptcyreorganization is not something you want to undergo, but once we got toit everyone devoted their energy to two goals: do as much as we canwhile we’re here, and do it right.”

Finance

ANNAPOLISThe Carlyle Group, a private equity firm that manages US$60 billion fundsaid it would buy ARINC, which specializes in transportation communica-tions and ATC support that is used throughout the world. ARINC’s share-holders include Boeing and a dozen major airlines. It employs about3,300 people and earned US$10 million on US$900 million in revenuelast year.

Special

DRINK SUNLIGHT, RACE 3,000 KM

Delft University of Technology in Holland will try for a fourth consecutivewin in the Panasonic World Solar Challenge in October. The Nuon SolarTeam, a multinational group of 11 students from the university spentnearly one year designing and building Nuna4 to race over Australia’sStuart Highway from Darwin south to Adelaide. Over 30 teams areexpected to compete in the five-day race, which is run every two years.To conform with strict rules for this year’s competition, the ninth in theseries, the 200-kg Nuna4 has roll bars, and upright seating angle for thedriver and no more than 6 m2 of solar cells. The energy company Nuonhas been the team’s main sponsor since 2001. This year, AF-KL Cargo istransporting the Nuna4. The company’s involvement began in 2004,when Air France-KLM group began sponsoring a chair of maintenance,repair and overhaul at TU Delft’s Faculty of Aerospace Engineering.Through proximity to the faculty’s research into new materials, processesand structures, the chair supports AF-KL’s ongoing efforts to pursuedurable forms of transportation that can reduce CO2 emissions.


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passenger services at Abu Dhabi. He subsequentlybecame airport duty officer and a duty manager in AbuDhabi, Kuwait, Manila, Dhahran and Chennai. Beforemoving to Bahrain in 2004 as airport duty manager, heworked in sales and marketing in Katmandu. In hismost recent position, was head of the Bahrain hub.

Lloyd Paxton Mr. Paxton is the new CEO of Hungary’s recentlyprivatized air carrier Malev Zrt. He replaces JanosGonci who recently stepped down from the post. A35-year veteran of British Airways, he held variouspositions and served as President & CEO of AirAstana, Kazakhstan’s national airline. The Hungariangovernment sold a 99.95% stake in debt-ridden Malevto Russia’s OAO KrasAir earlier this year. KrasAir is51% owned by the Russian government and partly byBoris and Alexander Abramovich.

Mike WigginsMr. Wiggens is general manager in Manchester forSBS Worldwide. He has more than 20 years’ experi-ence in the forwarding and transport sector gainedwith other global supply chain service providers, wherehe carried similar regional responsibilities.

Francis Shih Ms. Shih is the new sales development and keyaccounts manager for Etihad Crystal Cargo. Based atthe Abu Dhabi International Airport hub, Ms. Shih willmanage the relationship with global and regional keyaccounts and drive sales development activitiesacross the network. She joins Etihad from BritishAirways World Cargo, where she gained 15 years ofexperience in commercial, customer services andoperations in India and Middle East.

Andrey Kalinovsky Mr. Kalinovsky became the new director general of theChkalov Novosibirsk Aircraft Production Association(NAPO) on July 4.

cargovision datelines

October 15-17Cargo Facts 2007, 13th Annual Aircraft SymposiumThe Weston Hotel, SeattleContact: Jennifer BrownT: +1 206-587-6537F: +1 206-587-6540E: [email protected]

October 16-19SCMLogistics World 2007Suntec Convention Center, SingaporeE: [email protected]/2007/scmlog

October 18-22FIATA World CongressGrand Hyatt, DubaiT: +41 43 211 65 00www.fiata.org

October 21-242007 CSCMP Annual ConferencePennsylvania Convention Center, PhiladelphiaE: [email protected]

October 30-November 1Freight Logistics 2007Sydney Convention & Exhibition Centre Darling Harbour, AustraliaEmail: [email protected]

November 5-717th ACI General AssemblyHilton Buenos AiresBuenos AiresT: +41 22 717 8585F: +41 22 717 8888www.aciworld.aero

November 6Second Annual Middle East LogisticsAwards 2007Madinat Jumeirah DubaiT: 971-4- 2976987E: [email protected]

November 7-9IX Air Cargo AmericasWorld Trade Center, MiamiT: +1 305 871 7910F: +1 305 871 7904E: [email protected]

23-25 NovemberInternational Freight WeekAbu Dhabi Exhibition CentreAbu DhabiContact: Sarah WoodbridgeT: +971 4 3365161 Ext 122F: +971 4 3353526E: [email protected]

December 4-7Vietnam Aviation Conference & Expo 2007Vietxo Cultural Palace, HanoiContact: China Promotion Ltd (CP Exhibition)Hong Kong, China.T: +(85)-(2)-25117427F: +(85)-(2)-2511969

January 23-25Air Cargo India 2008 MumbaiT: +91 22 2757 0550www.stattimes.com/aci2008/

February 12-14The World Air Cargo EventBahrain Convention & Exhibition BureauBahrainE: [email protected]

May 12-14TIACA Executive Conference and AGMCopenhagenwww.tiaca.org


Q: What are the main airfreight issuesClecat’s members are concerned abouttoday?

A: Security and airport charges are probably causingthe most worry.

Q: Can you explain what aspects of thesecurity regime are creating the mostproblems?

A: The EC directive on aviation security is interpreteddifferently by each EU member state. For example,the French government put in place a rule governingcargo that cannot be put through a scanner, eitherbecause it is too big or, perhaps, because it containsliquids that cannot be scanned. Either the forwardermust open the boxes and examine the cargo, whichis not usually possible because of the amount andtype of packaging involved, or the cargo must beheld for a minimum of ten days before it is shipped.

France is the only country in the EU to impose thisrule, which makes it very difficult for forwarders tooperate. Many shippers with cargo that cannot bescanned have chosen to truck their airfreight toneighboring countries, such as the Netherlands orGermany, so the cargo can be shipped immediatelywithout any constraints.

Q: What is Clecat doing to try to resolve thissituation?

A: We are discussing the problem with the EU Trans-port Minister, Jacques Barrot, and his department.We are in permanent contact with the people in


charge of the EU directive and are proactive incommunicating the industry’s concerns about thevaried interpretations of EU law and how they affectairfreight.

Q: Everyone would love to pay lowercharges. Why is Clecat particularlyconcerned about current airport charges?

A: Airport charges represent 4-8% of the feesforwarders eventually pay to the airlines, yet it is hardto know how airport authorities calculate charges.There appear to be 27 different systems for calcu-lating charges in Europe! Clecat has proposed a newdirective to force the airport authorities to publishclear and harmonized charging systems, as well as aprecise definition of what charges member states areallowed to introduce in their own countries.

In Italy, for example, Milan’s cargo handling is underthe control of the airport authority and the tariff ismuch higher than at most airports in the EU. Thisdoes not encourage Italian forwarders or shippers to

GUIDED MISSILEIn addition to serving as SVP for Southern Europe and Africa at GeodisWilson, Jean-Pierre Ennebick is a member of the board of Clecat, theEuropean forwarders’ lobby organization representing the Frenchforwarder organization TLF. He is chairman of Clecat’s AirfreightCommittee and vice chairman of its Maritime and Air Logistics Institute.We asked him what issues concerned Clecat and how they put their views across to the European Commission.

BY MARCIA MACLEOD

RESUME� Since 2006, Jean PierreEnnebick has been CEO ofGeodis Wilson - France andregional VP of Geodis Wilson -South Europe and Africa. He began his carreer with Mory,SA in 1974, training as anairfreight forwarder in the UKand the US, following his grad-uation from Paris UniversityLaw school (“faculté de droit”)and service in the French AirForce. After three years asdirector of Mory’s US division,he joined the firm’s manage-ment board and continued asits airfreight director through1989. Mr. Ennebick thenbecame MD of Saga Air in Parisuntil 1996 and MD of Kuehne +Nagle - France until 2006. Now 57 years old, he is marriedwith two children andcommutes on weekends to hisresidence near Biarritz, wherehe and his family enjoy thecultural and geographic attrac-tions of the Basque region.


cargovision 15

use their local airports. Even taking into account thecost of land transport, it can be cheaper for them tofly freight in and out of Zurich or another airportnearby.

Another example is the Paris Airports Authority thatcontrols services within the airport, includingtelecommunications. It gave the telecoms contractfor the entire airport to a company whose chargesare much higher than its competitors. So forwardersat the airport have to pay more for their telecomsthan those working just outside it.

Q: You have also said that Clecat isconcerned about airports planning newdevelopments without consulting theairfreight community. Can you explain howthis affects forwarders?

A: Clecat believes airports should consult usersabout planned developments. We also want to seean independent authority set up to enforce the rulesabout consultation - and about charges. Forexample, Paris Airports Authority is building a newcargo terminal at Orly on the side of the airport oppo-site to the existing cargo facility. This new terminalwill constrain the growth of airfreight because it willtake longer and cost more to move cargo around theairport.

CLECAT� The European Associationfor Forwarding, Transport,Logistics and Customs servicesworks with regulators toachieve a uniform environmentwhere its members can movecargo freely and securely forthe benefit of internationaltrade. The largest and oldestinstitution of its kind, CLECATwas established in Brussels in1958 and today represents 24national organizations of European forwarders andcustoms agents. It also repre-sents FIATA, the World Federa-tion of Freight Forwarders, onEuropean issues and, overall,promotes the interests of about 19.000 companies and1,000,000 million employeesworldwide.

© Maarten Hartman/Hollandse Hoogte

Q: Are there any other issues currentlyoccupying your time as a board member atClecat?

A: Yes. The number of consolidations in the industry,including those of Air France and KLM, could have abig impact on forwarders as it creates very large andpowerful organizations. We want to know what kindof policies the new companies will develop and howthese policies will affect us.

We are also concerned about the environment. Wewould like to see more use of fast rail services,perhaps a fast rail shuttle between Charles de Gaulleand Schiphol, so forwarders can move freight to themost suitable airport.

Q: Finally, Mr. Ennebick, how do youconvince European ministers to listen toyou?

A: Clecat’s permanent administration is responsiblefor producing position papers and other documentsand for speaking to EU executives. The administra-tion acts according to the board’s wishes. The boardand other Clecat members often support the GeneralSecretary or other officers at meetings. The need fora consistent voice makes it imperative thatapproaches to the EU are made centrally.



Maintaining service quality has become vital to companies at allstages of the transportation chain. IATA set up the Cargo 2000industry group in 1997 to monitor and manage quality andimprove the efficiency of air cargo. How well is it working?

BY TONY CARDING

MEASURING


� Nearly 50 airlines, forwarders, ground handling agents androad transport operators have joined Cargo 2000 (C2K). But isfulfilling the need for measurable quality standards to improveperformance? Most participants think it is. Some do not.Swiss-based Kuehne + Nagel was a founding member ofCargo 2000 and is so far the only forwarder to have achievedphase-two certification and to have installed it throughout itsnetwork. The company currently checks an average of100,000 air waybills per month. It monitors them by Cargo2000 standards, according to Werner Blaser, vice president-Corporate Airfreight.Originally, Cargo 2000 was designed for installation in threephases, because the founders knew that all members couldnot proceed at the same speed, Blaser explains. “The firstphase was set up to monitor performance between airportson a master air waybill level. That involved more measuring onthe carrier’s part.”However, during its phase-one rollout, Kuehne + Nageldecided it should work internally on phase two, which moni-tors activity from door-to-door on a house air waybill level. “Itwas a need we felt would benefit our customers and we didn’twant to wait,” Mr. Blaser says. “Now, we are certified globallyfor phase two. But once you start monitoring the figures youfind many things you don’t quite like. Corrective action has totake place and that does not happen overnight. There are stillareas where we are not satisfied with our performance andadjustment is ongoing.”“The main benefit of Cargo 2000 membership for Kuehne +Nagel is that we don’t have to go back to each carrier andstart agreeing on standards all over again”, Mr. Blaser says.“All of the Cargo 2000 members have agreed on thosealready. Also, as in any other industry, if you can eliminateproblems before they really cause delays you have less troubleand you have less workload. Fixing them afterwards alwayscosts more money than doing it right in the first place.”

BETTER DATAAnother forwarder to involve itself in Cargo 2000 from thebeginning is Yusen Air & Sea Service, where Takuya Takeda,the company’s coordinator, Cargo 2000, says: “We do not seeany tools or standards other than C2K for monitoring air cargotransportation quality.” The company currently monitors an©

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average of 5,000 air waybills per month for phase oneand last September moved on to phase two for theTokyo-Singapore traffic lane.“We now have 10 measured stations,” Mr. Takedasays. “It would not have made sense for us to havestayed at the phase-one level, because that measuresthe master air waybill progress, and operationalperformance is mostly up to the airlines. However, themajor part of our performance as a forwarder isreflected in phase two, on a house air waybill level.”The simple and visible benefit of Cargo 2000 to Yusenhas been an improvement in data quality, Mr. Takedasays. “Operating to C2K standards, which have datastorage functions and data analysis, improves ourcompany’s data quality. In turn, this benefits ourcustomers who need quality data about the move-ment of their air shipments.”

SIGN ON“C2K is the new industry standard,” says Holger Bilz,vice president and head of global airfreight operationsfor DHL Global Forwarding. “All participants measureusing the same methodology to compare againstshipment planning. Plus, Cargo 2000 is a proactive,tracking system. There are carriers that have a goodtracking system but they are not proactive, becauseyou have to go there and ask for the information.”DHL was a founder member of Cargo 2000 and inOctober 2005 was certified to phase two for eightstations. “We are aiming for certification on a globalbasis this October,” Mr. Bilz confirms. “In May thisyear, our company measured around 65,000 masterand 130,000 house bills. We have a very steepupward trend in the number of messages. ByOctober, we expect to be measuring 200,000 housebills per month.“We have already improved our quality tremendouslyby closely checking all failures and monitoring improve-ments,” Mr. Bilz continues. “We also use Cargo 2000for carrier management, to establish the flown-as-planned ratio, for example. It enables us to nowcompare apples to apples and measure using acommon methodology. We expect our preferredcarriers to be participants in Cargo 2000. Most of themare. The others are under pressure from us to join.”Mr. Bilz adds that closely monitoring the Cargo 2000reports and identifying the root causes for anydiscrepancies, will enable DHL to improve itsmessaging capabilities and make the company fit fore-freight. Farther into the future, Mr. Bilz expects toexpand monitoring to include management of truckand warehouse operations.

Among Cargo 2000’s carrier members, Cargolux saysit is 100% committed to the concept, according toRobert van de Weg, the airline’s SVP of sales andmarketing. “It is the only way we can really monitorquality internally, in our own system, and externallywith forwarders. It is our designated quality controlsystem.”Cargolux currently monitors performance only at themaster air waybill level and is checking between 3%and 5% of its shipments, “Far too few to be signifi-cant,” Mr. van de Weg says. “However, we areexpanding our monitoring lane-by-lane in cooperationwith our forwarder customers in accordance with theCargo 2000 timetable. The impact of the program willbecome clear only when bookings made by Cargo2000 represent a higher percentage of the totalnumber we receive. To achieve that, the commitmentof both forwarders and airlines needs to be there.That’s the crucial factor.”

SIGN OFFOne important cargo carrier to say it has not adoptedCargo 2000 is Emirates SkyCargo.“Performance measurement using Cargo 2000 stan-dards does improve service standards,” says SunilPatrao, the company’s cargo systems controller. “It islacking important elements, such as qualitative andaccurate data capture and timely data submission.With Cargo 2000, regardless of whether a forwarder isimplementing phase one or phase two, its customerswill be affected adversely without data integrity andtimely submission.”Alternatively, Emirates SkyCargo introduced SkyChainin August 2006. It developed this cargo managementsystem in house and has made it available to otherairlines.“SkyChain has system intelligence built-in that canassess the syntax of data received electronically toensure that it is correct and to generate necessaryalerts to the operational units concerned if it is not,”Mr. Patrao explains. “SkyChain can also verify andcorrect data entered manually. In addition, based onthe shipment transportation plan defined in SkyChain,it will trigger internal operational alerts when shipmentsdiffer from the plan, enabling immediate correctiveaction.”Mr. Patrao explains Emirates’ decision not to joinCargo 2000 this way: “It is based on legacy systemprotocols and syntaxes. SkyChain complies withCargo 2000’s requirements. But it is also capable ofcommunicating through a variety of protocols andsyntaxes with a much larger base of forwarders.”

cargovision measuring quality

Werner Blaser

Holger Bliz


A ship stops for a couple of hours in Shanghai, Buenos Aires or SanFrancisco, offering a narrow time frame at a destination far, far away. To hit this mark with a package of spares is the job of Wolfgang Kaffka.

BY HEINER SIEGMUND

cargovision 19

� Wolfgang Kaffka knows them all: the agents thatspecialize in managing the supply chain for shipspares from Hamburg. How did this Northern citybecome the world capital of ship spares? “First camethe wharfs and the shipping companies,” Mr. Kaffkaexplains. “Then came the suppliers and finally theagents who found good money serving the maritimeindustry.”

Nowadays, thousands of different parts from aroundthe world arrive at Hamburg’s warehouses wherethey are stored until a vessel breaks down some-where. Then, Mr. Kaffka and his team come into playto close the final link of this complex supply chain.

Today’s speedy ocean vessels tie up for only acouple of hours in port, limiting the time that agentsand airlines can deliver spares. A typical examplewas the Croatian tanker Ist, en route from Syria toSpain through the Mediterranean: a compressorbroke the day before the ship was expected inMarseille.

“We received the local agent’s call,” Mr. Kaffka says.“We booked the new compressor on an eveningflight from Hamburg to Paris to Marseille. We had thesupport of André Santi and Rappel OpérationelClient, his customer service unit in Paris, to controlthe flow of this time sensitive shipment proactively.”Shortly after 9:00 am, the shipping company’s repre-sentative in Marseille received the compressor on thequay just in time to give it to the Ist before shedeparted.

All in a day’s work for Mr. Kaffka and his team ofdedicated AF-KL Cargo managers who cope withmany such ship-spares missions in their offices.“About 30% of our business consists of gears,crankshafts or propellers. On just one day in July, forexample, 18 of 42 packages delivered to our ware-house in Hamburg were ship spares.

Mr. Kaffka, who is an Air France Cargo veteran,explains how the AF-KL team in Germany hasimproved the handling of this sensitive businesssince the two offices merged. Now, everyone workstogether to deliver optimal service. Usually, the AirFrance flights carry the larger pieces while the KLMflights handle the smaller ones. “Air France has alarger freighter fleet than KLM and can accommo-date the larger shipments. But by sharing this workwe generate loads of synergies.”

cargovision people make a difference Wolfgang Kaffka

© Frank Scymanska

MR.CLOCKWORK


Nothing will guarantee that every shipment on every flight is safe. But what is an acceptable risk? Howcan it be achieved? Individual authorities with differing attitudes and levels of risk tolerance havepublished varying responses to these two questions, forcing airlines, forwarders and shippers to navigatea confusing and conflicting security environment. A new organization, the Air Cargo Security IndustryForum (ACSIF), which is jointly led by IATA and FIATA, hopes to simplify and harmonize this landscape.

BY MARK W. LYON


THE CONSTABLE’S CONUNDRUM


� Supply-chain security is an expensive mess,according to the people who manage it. “Make itsimpler,” they advise. “Make it harmonious. There aretoo many standards and definitions.” Since the 1988bombing of Pan Am flight 103, aviation authoritieshave issued dozens of directives that have drasticallyincreased the airlines security workload; for example,turning one major airline’s two-page airfreight secu-rity manual into a tome of 2,400 pages. The good news is that airfreight transport is moresecure than ever before. External experts whoaudited the main players found that they sharesimilar procedures: companies secure their prem-ises, conduct background checks on employees andinspect and accept cargo along common guidelines.The larger airlines do this to ensure their own internalsecurity. They don’t want to lose goods or endangertheir businesses or their employees.However, these experts also found that the elementsof an effective security program are not practicedwidely across the industry, either because peoplelack sufficient knowledge of them or they cannotagree on a methodology. Different governments andcompanies have their own views on which responsesare relevant and effective and, furthermore, becausesecurity is secretive, tend to formulate their policiesindependently. People don’t necessarily know all ofthe various requirements. The result is a cumber-some system that is effective in places but could bevulnerable where it spans national or regional bound-aries.

PEACE OFFICEROf the efforts to resolve the high cost and complexityof securing global airfreight operations, the mostrecent began in June when ASCIF, the Air CargoSecurity Industry Forum led by IATA and FIATA, heldits first meeting. Individuals from 14 of the 21 associ-ations who have joined the group met in Brussels,formed a six-member executive committee, definedsome basic principles and set priorities for thecoming year. Simply getting industry associations to align them-selves to a course of action was an important step,says John Edwards, IATA’s head of cargo security.“The industry recognizes now that it must workproactively with regulators to solve these problems,achieve cooperation between states and industrystakeholders and start working out the fixes and whowill do them.”The immediate problem is that government regula-tors are focused on airports, the last line of defense,Mr. Edwards says. “We need to move controls up thesupply chain. If we don’t, things will get worse aseach government initiates its own program. We need

to take leadership. We must keep the air cargo busi-ness viable and must protect its key selling point,which is speed.”Looking at the longer term, Mr. Edwards adds, “Weneed to find a way to agree on consistent baselinemeasures, definitions and those solutions that areproportional and relevant to the threats. This can onlybe achieved through a dialog with security experts sothat we can continually assess threats and breaknew ground in finding solutions.”

CROSS EXAMOn a broad scale, Europe and America do not agreeon how to increase security and, at the same time,facilitate trade. However, many people are workingon this, says Marcus Hallside, who developed theprototype of the known-shipper database for the USTransportation Security Administration. “We have ablueprint for acceptance of EU measures in the US.Now, other countries are becoming involved,including Canada and Mexico. If this effort succeeds,a regulated agent and trusted shipper in one areacould be accepted in another.”Even on the smaller playing field of Europe, theGerman, Dutch and French do not buy each other’sscreening practices. In light of these conditions, Mr. Hallside proposes: “Our industry has multina-tional companies. They have multinational vendorsand they share a common interest in bringing thistogether. We must pressure governments to avoidcomplete cargo screening and adopt systems thatare accepted by other countries.”Because regulators have created many concepts fora trusted-trader, there is no recognized way to knowwho is a secure partner in the supply chain. Indepen-dent auditing and validation, as done in the UK, forexample, could solve this problem and level theplaying field for both small and large companies.

THE FINDINGAn independent audit process could also help tobridge the gap between regulations. Many industryplayers, including AF-KL Cargo, welcomed IATA’sinclusion of its existing operational safety audit aspart of airline certification. Eventually the conceptcould expand into a quality assurance process thatall stakeholders in the supply chain could implement. “There is a debate over what we mean by harmo-nizing regulations,” Mr. Edwards says. “We meanachieving mutual recognition. Without this, wecannot address the growing cost and complexity ofsecurity measures. Harmony does not mean doingthe exact same thing. It does mean achieving thesame level of security.”

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SUNDAY Peachtree City

My wife, 4-year-old boy, 11-year old girl and I rise early to attend church.It’s a beautiful spring day. After lunch at home, we plant azaleas andcypress trees in the backyard. I grew up on a farm so yard work is secondnature. Then the kids and I share some laughs while attempting to hit golfballs at the driving range. It’s a blessing to live in a golf-course community.The amenities include 110 miles of golf cart paths. The family hops on thegolf cart and we head to a nearby restaurant for dinner, spotting a deerand several rabbits along the way. Later, at home, the kids get ready forbed and I prepare for the week ahead in my home office.

MONDAYAtlanta

Traffic isn’t bad on the 22-mile commute to the office, north of Atlantaairport. I arrive at 7:30 to get ready for our daily call led by the EVP ofoperations. It includes 125 participants from cargo, airport, safety andoperations. Afterwards, I review e-mail and have lunch at my desk. Then, Imeet with my boss, the EVP of sales and marketing for cargo, for a twice-monthly update when we review service issues, revenue and industrynews. Next up is the weekly staff meeting with finance, HR and corporatecommunications to fine tune the bankruptcy-emergence plan. We discusscommunicating new benefits to employees. HR briefs us on efforts to addcargo sales and service staff. In the evening, Delta Cargo’s generalmanager of revenue management and I enjoy a business dinner with oneof our software vendors.

TUESDAYAtlanta

The day begins with my bi-weekly staff meeting. I pass information frommy boss to my direct reports in cargo, finance and HR. Reorganizationissues are high on the agenda. Next, we meet with our internal auditgroup to ensure that business is running as it should. We focus on opera-tions and cargo accounting. Again, I munch lunch at my desk and finalizereports. Later, during another reorganization meeting, we review theemergence plan with HR and corporate communications. We areconcluding a painful 18-month reorganization that involved job and paycuts. However, the mood is celebratory that evening at our sales dinnerwith 25 of our domestic sales team. It is a kick-off to their sales meetings

the next day. I comment on our work, emphasizing operations andrevenue.

WEDNESDAY Washington, D.C.

In the morning, I travel to Washington for the twice-annual Air TransportAssociation Cargo Council meeting. My colleagues and I spend the after-noon discussing many topics with the ATA folks, from cargo security tothe movement of military human remains. During the evening, we enjoy acocktail reception and dinner.

THURSDAYWashington, D.C.

The ATA Council starts in the morning and wraps up in early afternoon:Transportation Security Administration talks about new leadership,programs and cargo initiatives before Congress. I catch a late afternoonflight to Atlanta. After three nights out for dinner and being on the road,there’s nothing like family dinner at home.

FRIDAYAtlanta

Today is Friday the 13th so I didn’t know what to expect. However, I takean early morning conference call and recap the emergence plan withcargo sales and operations and then a weekly meeting with HR on thesame topic. By 10:00, I’m getting updates from our software vendor onthe IT project. Next, I meet with our tech people about revamping theDeltacargo.com website. From noon to mid-afternoon I have a workinglunch with Delta employees who are stationed at Air France and KoreanAir offices as part of the US joint venture sales partnership. They areresponsible for all US export sales. I oversee the quarterly meetings, givingan update on Delta. I leave work early to swing by the airport to pick upmom, who is flying in from Memphis. We enjoy a family dinner that night.

SATURDAY Peachtree City

I help decorate for my son’s fourth birthday party. Rain threatens so I setup a tent. It’s a backyard affair with 20 kids, many running around aspirates. I spend the rest of the day cleaning up and preparing for the weekahead.

Ben Darnell is managing director of cargo at Delta Air Lines. His 22-year tenure at the airline includesforming alliances in the international division and working in customer service and cargo andpassenger sales. He recounts a busy week in April 2007, about a month prior to Delta’s official emer-gence from bankruptcy.

WITH MARCIA JEDD

cargovision a week in the life of


© Hollandse Hoogte


BEN DARNELL



� The transportation trade fair in Munich is huge,stunning in fact. It’s easy to reach; hotels are plentiful.Everything surrounding this mega-event is managedwith the skill and precision you would expect in theheart of Bavaria. Although many exhibits and presen-tations were clearly intended for a German audience,the hosts and exhibitors consistently respected theinterests and the needs of their large internationalattendance. The presentations were tailored topeople in various modes of transportation and infor-mation technology and we include some high pointsbelow.

GERMANY AND RUSSIAJörg Hennerkes, state secretary of Germany’sFederal Ministry of Transportation, Building andUrban Affairs, said that Russia’s 6% economicgrowth, combined with a 25% expansion of cargotraffic along the Russian-European Corridor makesthe eastern neighbor an attractive investment andmanufacturing location. Mutual interest in building upthe infrastructure between the two nations is high,spurred by last year’s meeting of transport ministersand the subsequent signing of a letter of cooperationin transport. Working groups are now busy withlarge-scale infrastructure projects, road-use fees,railway and ferry transport and sea logistics.“We will present Germany’s smooth running logisticsactivities to our Russian counterparts to convincethem to adopt modern technology,” Mr. Hennerkessaid. “For rail, in particular, we can look to a trustfulcooperation, where increasing the competitivenessof both rail systems is a common goal. The German,Polish, Belarusian and Russian railways decided tocreate one company and shorten delivery times andimprove competitiveness. For the first time recently,we went from Berlin to Moscow in three days. Thatwas an important step in connecting Trans-Siberianrailway with Europe.”

RUSSIA AND RUSSIAUnfortunately, once inside Moscow, things slowdown. Average speed on the city’s roads is 4 km perhour, according to Alexander S. Misharin, Russiandeputy minister of transport. Russia is trying to bringmore investment into the transport area and resolveproblems like this. While better laws have permittednew fees on toll roads, ports, airports and terminals,attracting private funds means demonstrating solidprojects that give investors the confidence to loosentheir purses. “It takes long discussions,” Mr. Misharinsaid.However, for international traffic that must traverseRussia’s girth of 11 time zones, the nation is devel-oping a formidable capacity. The Trans-Siberian railproject will enable shippers to move containers fromAsia to Europe and between China and Kazakhstanand along other, yet-to-be-defined routes. The linecomplies with international safety standards and hasthe support of government agreements with bothGermany and China in order to develop its network.At the same time, Russia is investing US$800 millionto build two new terminals before the end of the yearat the port of Novorossiysk. By docking in the BlackSea, ships sailing from Shanghai or Guangzhouavoid traveling through the Mediterranean toEurope’s North Atlantic ports. Moving their goodsoverland from Novorossiysk shortens the total timeto Central Russia and Eastern Europe by eight days.

DISPLACED HUBSIn the Persian Gulf, Dubai is also thinking aboutCentral Asia. “In ten years,” said Ram Menen, divi-sional SVP of Cargo for Emirates, “The growth ofEurope’s airports will be constrained. Two-thirds ofthe world’s population is east of Dubai and half of it isin the world’s fastest growing economies. Capacitygrowth will flow to the areas with unconstrainedcapability, like Dubai, and we will relieve the pressure

With 47,000 visitors and 1,580 exhibitors, Munich’s Transport Logistictrade fair has become one of the largest gatherings of logisticsprofessionals in the world. For people in the airfreight business it offers awider selection of exhibits, customers and partners than the biannualTIACA forums.

BY MARK W. LYON

TRANSPORT EXPO


cargovision 25

on Europe.” Providing future capability anywheremeans that you have both hubs and regional hubswith growth that both can sustain, said Enno Osinga,SVP of cargo at Schiphol Airport. “It is a challenge. Inour discussions with governments, we stress thatnight operations are essential for high quality cargoservice. But noise is an environmental threat. Wewant quieter aircraft but manufacturers cannotprovide them.“Building capacity also means we have airportaccess and automation systems that are built forspeed,” Mr. Osinga added. “Big forwarders want todeliver built-up pallets to the airlines so let’s put theirfacilities on the airside and make this possible. We

could also change the focus in customs frominbound to outbound cargo, as they are doing inChina. Then, when the aircraft leaves, the freight iscleared already and there is no backlog on arrival.”

RESPONSIBILITY“Airports are part of the logistics process,” Mr.Osinga concluded. “We have looked at investing andgiving high-quality services to the airlines andcharging them accordingly. However, we must takeresponsibility for our role and not price ourselves outof the market. If the airline’s profit is under pressure,so is the airport’s.

“Buildingcapacity alsomeans we haveairport accessand automationsystems thatare built forspeed”

O 2007

© Thomas Plettenberg


� It’s been a long time coming, but the tip of theiceberg is in sight: a booming airfreight market inVietnam. There is pressure on the government toliberalize the current monopoly on ground handling, toallow more private airlines to compete with govern-ment carrier Air Vietnam and privately owned PacificAirlines, and to allow foreign companies to own up to49% in joint ventures. Though there are somethinglike 800 to 900 freight forwarders in the country, mostare very small, almost “Mom and Pop” operationswith very little capital and very few clients. Of thelarger ones, 87 are members of the Vietnam FreightForwarders Association, or VIFFAS, a grouping that islobbying the government hard for more market free-doms.VIFFAS says air cargo exports totaled about 85,000tons from Ho Chi Minh City’s Tan Son Nhat airport(still designated SGN from when the city’s officialname was Saigon) and about 25,000 tons fromHanoi’s Noi Bai (or HAN) in 2005. The Civil AviationAdministration of Vietnam says growth in air cargo isabout 14% a year, and is expected to reach 576,000tons in 2010.The pressure on government to move more swiftlytowards liberalization is ratcheting up: there’s aSaigon Hi-Tech Park attracting factories set up byforeign companies. It’s a two-way street that shouldbe good for a couple of years, with industrialmachinery being imported by Vietnam before a waveof hi-tech exports joins the stream of textiles andapparel (currently 39% of the total), footwear (25%),handicrafts (10%) and electronics (8%) that at presentform the bulk of goods leaving by air.That’s going to need new facilities, and work is underway on a new terminal for SGN (the airport itself is inthe city and cannot be enlarged) to carry the marketthrough the next few years. In the meantime, work is


starting on a new US$8 billion SGN airport at LongThanh, about 40 kilometers from the city, to berunning by 2011/12 and HAN is to be modernizedwith a new runway and terminal. Liberalization is slow,but it is picking up: for instance, Australia’s QantasAirways has agreed to buy 30% of Vietnam’s PacificAirlines.

WHAT THEY SAY

BERNARD NOYEAF-KL Cargo Manager, Vietnam:

“E- tools are not yet working in Vietnam, and we don’thave any official statistics on the air cargo market, soit’s difficult to forecast the future. Vietnam is in a bigboom, but air cargo logistics must follow the growthof major commodities, even if those commodities(garments and shoes) are basically supplementingsea freight. We hope that development of hi-techgoods will improve the air cargo market in terms ofrevenue and regularity of cargo flows.Competition in the air cargo market has beenincreasing very strongly and at the same time seafreight is becoming more efficient. Since April,capacity from SGN has increased, especially withnewcomers Qatar Airways (four weekly passengerflights) and Cargoitalia (two MD11 freighters). Otherairlines are also looking at the Vietnamese market, forinstance Cargolux. Most of our competitors are Asianairlines, either operating freighters or operating twiceor three times daily, passenger flights.Currently there is no cargo village in either SGN orHAN. The development and the investment for thisare in the hands of the handling monopolies (TCS atSGN and NCTS at HAN).”

VIETNAM BY MICHAEL WESTLAKE

NEED TO KNOW

� Population: 85,262,356 (July2007 est.)

� GDP real growth rate: 8.2%(2006 est.)

� Economy: Vietnam joinedthe World Trade Organiza-tion in January 2007.Poverty has been muchreduced and the govern-ment is moving - slowly -towards liberalization.Foreign investment isgrowing and modern, high-tech factories are beingbuilt. Agriculture isbecoming smaller as apercentage of economicoutput.

� Trade: Vietnam is a memberof the Association of South-east Asian Nations’ FreeTrade Area and has a bilat-eral trade agreement withthe United States. Exportshave increased rapidly overthe past few years andeconomic reforms areexpected to continue toboost overall trade.

� Exports: Leading the 19listed items in the “morethan US$100 million a yearclub” are crude oil, garment,textile, footwear, seafood,rice, wooden products,electronics, computer,coffee, coal and rubber.

� Imports: Major items arepetroleum products, steel,fertilizer, electronics,machinery and equipment.

� Currency: The Dong (VND).Exchange rate US$1 =15,973 Dong on 12 July2007.

Sources: CIA Fact Book, VietnameseGovernment Web sites, EuropeanCommission, World Bank/IMF.

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cargovision 27

PAUL GUILHELM QUANGGeneral Manager of forwarder Cargo Team:

“We export a lot of components to France as rawmaterials for electronics, as well as garments, plusshoes - mostly to Britain - and we import machinery.Eventually the market will shift to Hanoi. Vietnam isn’tlikely to be a cargo hub for the area until the new SGNairport is running, say 2010/20. Then it may be moreimportant. And cargo villages may be something forthe new airport.”

MICHEL KHAOUManaging Director of DHL Global Forwarding inVietnam:

“In the next five years, there will be a new airport 40kilometers from SGN. Every agent is waiting forgovernment as to when it will go for electronic docu-mentation - customs services should come online in

one or two years as new foreign investors are moredemanding than traditional factory owners. Handling is a government monopoly, but hopefully thegovernment will take into account the needs of theindustry for increased facilities. Liberalization hasbeen talked about for two years, but so far not muchhas happened.”

STEFFEN TREIBERGeneral Manager Airfreight, Schenker Vietnam:

“Modernization of industry is happening, but it’s slow.In the Saigon Hi-Tech Park companies are setting upfactories, but it’s recent, so the factories are still beingbuilt. We expect some development in imports ofcapital equipment, machinery and so on. This is anindication that the big boys are coming. The regulatorysystem is changing, but slowly. Ground handling is stilltraditional, labor intensive, and more rapid handling isneeded. Also, forwarders need the freedom to buildtheir own pallets. But things are moving.”

TRAVEL TIPS

� Greet people with a hand-shake and verbally. Wearsimple, informal and discreetclothing - no shorts, onlychildren wear them.

� Do not touch Vietnamesepeople on the head.

� Footwear must be removedbefore entering a Buddhistpagoda.

� There can be restrictions onphotography at ports andairports for security reasons.It is polite to ask people’spermission before photo-graphing them.

� Vietnam is a Confucian-stylesociety, similar to those ofChina, Japan and Korea inthat “face” is extremelyimportant, as is building aconsensus and avoidingembarrassing your businesscontacts. Do not try to makepeople backtrack. Tact,courtesy and discretion arevital.

� Striking a deal in principleprobably only means thestart of real negotiations.

� A contact’s apparent inabilityto make a decision probablyindicates that others have avoice on the matter, and/orthat there are hiddencomplexities that must becarefully negotiated.

� Introductions are best madevia a mutual acquaintance -complete outsiders may beregarded with suspicion.

� Small gifts such as lighters,pens and liquor are greatlyappreciated.

� Tipping: 5%-10% of arestaurant bill is a smallamount and is very muchappreciated. Government-run restaurants add 10% tobills anyway. Porters andtaxi drivers will expect asmall tip.

Sources: US Commercial ServiceVietnam (www.buyusa.gov/vietnam),iExplore.com, Asiatravel.com.

© Jack Hobhouse/Alamy

© Nicholas Pitt/Alamy

�


Oct ‘06

Major Scheduled Airlines - Global Freight Traffic Growth

-5%

0%

5%

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Jan ‘07 Apr ‘07Apr ‘04 Jul ‘04 Oct ‘04 Jan ‘05 Apr ‘05 Jul ‘05 Oct ‘05 Jan ‘06 Apr ‘06 Jul ‘06

Ann

ual G

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th

Growth - Quarter vs Quarter previous Year

Average Growth of Last 3 Years = 5,9%

Growth - Month vs Month Previous Year

IATA - Total FTK and Freighter FTK growth

-5%

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Total FTK growthFreighter FTK growth

1990 1991 1992 1993 1994 1995 1996 1997 1998 19991989 2000 2001 2002 2003 2004 2005 2006

IATA - International FTK per Aircraft Type

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Belly & Combi

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1990 1991 1992 1993 1994 1995 1996 1997 1998 19991989 2000 2001 2002 2003 2004 2005 2006

OVERSUPPLIED� Although traffic seems to be picking up, the results for 2007 thusfar are disappointing and below the long-term trend. WeakeningAsian markets are the main cause. China’s exports are stillgrowing, but other Asian countries show a different picture. Japanand Taiwan report low airfreight growth. The reasons for this maybe a shift of production to China and less traffic from China to othercontinents due to more capacity among the Chinese carriers.However, not all the world’s sectors are slowing. The North Atlanticthis year grew more than in the past and so did traffic to and fromAfrica. India is also becoming a more interesting air cargo market;hence the picture is quite differentiated with several bright spots ona rather gray canvas overall.

� In May, IATA published the 51st edition of its World Air TransportStatistics. The annual publication contains lots of interesting statis-tics about air transport developments among IATA’s memberairlines. Both passenger and cargo aircraft carry freight and IATAgives separate figures for freighters and for the entire fleet. Usingthese data from WATS publications over the last decade, we canplot the growth of cargo carried by freighters versus the growth ofthe entire market. In most years, the growth in freighters was higherthan that of the total market. However, in 2006 FTKs grew moreslowly in freighters. Still, it’s remarkable how similar both the growthrates and fluctuations look.

� Due to the higher traffic growth in IATA freighters, they now carry53% of all FTKs. There are also a number of freight carriers amongthe non-IATA members and we may assume that the actual shareof freighter traffic is even larger than 53%. After 2003, freightersseemed to lose their ground. It could be that the large number ofpassenger aircraft introduced by the Gulf carriers explains the rela-tively higher growth in belly freight. In addition, new aircraft like theB777-300 have a larger belly capacity. As of July 2007, the totalbacklog of new wide-body aircraft orders was 1895 aircraft,including 281 freighters. This suggests that belly capacity willcontinue to increase and the traffic share of freighters may notchange.


cargovision market monitor


� Just 15 airlines account for most of wide-body jets introducedduring the last ten years. FedEx and UPS together added 260wide-body freighters. Because both carriers added mainly A300sfor their domestic and regional markets, their impact on interna-tional capacity is small. The other 13 airlines added mostlypassenger jets and some freighters. Airlines that either didn’t existin 1996, like Etihad, or that were much smaller, like Emirates andQatar, now greatly influence cargo capacity growth. Expect also tosee an increase in wide-body jets in India. Note the absence of UScombination carriers from this graph. Most of them did not addwide-body aircraft but simply moved existing equipment fromdomestic to international routes. Japanese carriers also added fewwide-body jets because they are replacing those used on domesticroutes with smaller equipment.

� Using IATA members’ fleet data we can graph the developmentof the wide-body fleet since 1990. This fleet carries more than 90%of the world’s cargo, either in freighters or passenger bellies and itsgrowth during the last decade has come mainly from additionalB777s, A330s and A340s. These aircraft have shifted the ratio ofcargo capacity to passenger aircraft because of their large bellyholds. While DC-10s are leaving the fleet, B747s will remain longerbecause Boeing is still introducing new versions. With almost2,000 aircraft scheduled for delivery during the next ten years, wemay soon be facing air cargo overcapacity. Of course most aircrafthave been ordered as passenger planes and the increase in cargocapacity is a side effect. Compared to the current growth ofairfreight it seems that many carriers have a very optimistic view ofthe future.

cargovision 29

A look at the latest figures from IATA suggests that the large number of wide-body aircraft on order will createmore capacity than could be healthy for airfreight operators. Dick van den Berg crunches the numbers.

BY DICK VAN DEN BERG

� The growth of wide-body fleets illustrates the capacity develop-ment in the world: high growth among integrators, Middle Easternand Asian (mainly Chinese) carriers. Africa and Latin America don’teven register. Nor are US carriers adding capacity while they focuson domestic, narrow-body operations. During the coming decade,fleet growth in Europe may be smaller and in Asia (China and India)somewhat larger. The Asia-Europe sector may face the highestcapacity growth because European and Asian carriers will facecompetition from cargo operators in the Gulf who are developingstrong hub systems. Both in cargo and in passenger transport, theAsia-Europe market will face enormous growth in capacity. Onlytime will tell if market demand can cope.

0

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IATA - Increase in Wide-Body Fleet 1996 - 2006Relative share in increase

European Carriers15%

Integrators 36%

Asian Carriers24%

Middle East Carriers25%

IATA - Increase in Wide Body Jets 1996 - 2006

0

Increase in number of WB Jets

20 40 60 80 100 120 140 160

FedEx

UPS

Emirates Airlines

Air France - KLM

Lufthansa

Thai Airlines

Saudi Arabian

Cathay Pacific

Qatar Airways

Air China

Singapore Airlines

China Airlines

Etihad Airways

Malaysia Airlines

British Airways

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cargovision postscript

dreams of returning to his homeland and the company says it is taking theincident extremely seriously. The rest of us, however, are secretly awaitingthe next chapter. �

� PLANE TALK IYou gotta like a guy who calls a US$5-billion profit “peanuts.” That’s howIATA’s director general characterized last year’s 1% profit for the airlineindustry. “We need US$40 billion just to cover the cost of capital,”Giovanni Bisignani went on to tell IATA’s general meeting in June. With thiskind of miniscule return, it’s no wonder private equity funds are droppingairlines and looking for railroads. Still, they’re unlikely to find a spokesmanin that industry as colorful and as truthful as our guy. Keep on sayin’ it likeit is, Giovanni. �

� PLANE TALK IIWho is not in favor of cleaner automobiles? Well, Detroit to name one. Butbeware if thou should criticize the US auto machine, that thee first havethine own house in order. Fred Smith has walked gracefully erect upon theregulatory tightrope for 30 years and FedEx has reaped the rewards. Fred,like most of us, wants cleaner cars and thinks Detroit could make them ifthey had to. He has called for higher Corporate Average Fuel Economystandards, which Detroit and other automakers oppose. “Fred Smith istalking about how the domestic auto industry has to get with the programand increase standards,” said Rep. Candice Miller (R-Mich.), “Yet FedExhas a very small percentage of their fleet that has any kind of advancedfuel technology. If you want to be righteous, you have to take a good look

� HE’S BAAACKCharles D. McKinley, the American who stowed awayin a box shipped as an airfreight consignment ofcomputer parts from New York to Dallas, is likely to bethe D.B. Cooper of airfreight security. That is to say, hisspirit will remain with us forever. Mr. Cooper hijacked aB727 in late November 1971. At that time, the industrylacked a coherent defense against hijacking. Theauthorities in charge of that particular fiasco placed theUS$200,000 ransom he demanded on the aircraft,which then departed. As it flew over the Pacific North-west, Mr. Cooper donned a parachute, leapt from theback of plane and has never been heard from again.The only two clues to the mystery appeared when aboy found US$6,000 in decaying US$20 bills on thebanks of the Columbia River in 1980 and whensomeone else recovered part of a sign believed to befrom the same B727s rear stairway.

D.B. inspired a movie and a legion of would be extor-tionists, which have, thankfully, been defeated bystronger responses from the authorities to suchthreats. However, Mr. McKinley has become the inspi-ration for a new generation of stowaways. Mostrecently, a Kenyan man was taken from an air cargoshipment in Dubai as it was being palletized in prepa-ration for loading onto an Emirates weekly charter toKenya. The man was a former Dnata employee with

© Camera Press/HH


cargovision 31

Cargovision is the management magazine of AF-KL Cargo. Its function is to disseminate information on transport, distribution, logistics, information services, and general business developments. The editorial opinions expressed in the magazine are not necessarily those of AF-KLM. Repro-duction in whole or in part without written permission is prohibited.

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in the mirror.” Republican lawmakers, like Ms. Miller,who support the automakers, have proposed makingit easier for FedEx employees to unionize. UPS driversare already unionized locally and are affiliated with theTeamsters and the lack of unions at FedEx has been asignificant cost advantage. �

� OKAY. NOW TELL US WHETHER SEX MAKES BABIES

A group of European Union experts has advised theEuropean Commission that the current air trafficcontrol system is impeded by fragmentation acrossborders and across component parts of the aviationsystem and costing the industry and its customers €3billion annually. In the words of one cargo executive(not one of the experts), “Europe again has borderswhen you move into the sky.” With 27 different nationalairspaces it is 75% more expensive and 45% less effi-cient than the US air traffic control system. Not tomention the 12 billion tons of CO2 emissions that asingle European sky would save. These messages arenot new. Why are they not getting through? Where arethe economists that have included environmentalparameters into the calculations of what determines asustainable enterprise? Come on guys, speak up. �

Mark W. Lyon, editor-in-chief

© T

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cargovision

Published by AF-KL Cargo Communication, P.O. Box 7700, 1117 ZL Schiphol, The Netherlands. Christelle Dufour Theuws, [email protected] Hemmer, [email protected]

Concept & Realization: vdBJ/Communicatie Groep, Bloemendaal, The Netherlandswww.vdbj.nl, [email protected] in Chief: Mark W. Lyon, [email protected] Manager: Urtha Ririhatuela, [email protected] Direction: Sok Visueel Management, Amsterdam, The NetherlandsEditorial Office: Vijverweg 18, 2016 GX Bloemendaal, The Netherlands, T +31(0) 23 541 1701Circulation Manager: Herman Brijssinck, T +32 2752 90 51, [email protected]

AF-KL Cargo © september 2007 Volume 22 Number 30

AFFAIRSOF THE CORPS

E-Freights LivesGuided MissileMr. Clockwork

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