Tag Archives: e-commerce

Cargo News, Ignazio Coraci

Cargo demand reaches 2017 high

Leave a comment

Airports have seen cargo demand increase throughout May 2017 to a high for this year so far. Statistics released by Airports Council International (ACI) show the high level of growth for cargo demand at an increase of 11.1% for May.

The ACI equates this stabilisation and growth of the cargo industry with the relatively calm economy following a prolonged period of uncertainty due to trade policy from the US and the risks of the UK’s vote to leave the European Union. They have said that: “… global commerce is no longer sidelined.”

Highest growth found in Europe

Europe is the region with the fastest growth rate, with an increase of 12%. Coming up close behind with a growth rate of 11.9% is North America. However, there were also improvements in double figures from airports located in the Asia Pacific region, as well as Latin American Caribbean. This latter region has suffered in recent years due to the weak Brazilian economy, but have had an upturn with these results.

Ignazio Coraci says: “It appears that confidence has returned to the global business market, which is illustrated with the recovery in air freight figures. The fact that all regions demonstrated high levels of growth year on year in May 2017, seems to show that recovery is worldwide.”

North America figures due to large freight hubs

According to the ACI, North America posted such a high growth in May due to the traffic at their biggest freight hubs. An impressive 80% of the top five airports in North America (by volume of cargo), posted growth in double digits.

Louisville, Los Angeles, Anchorage and Miami all showed increases in cargo of between 11 and 13%, while the largest hub in the region posted an increase of 1.3%. It also appears that these increases are at least partly down to a surge in domestic freight, which is up 9.1% in May after a lengthy period of slow growth (at just 1.7% year to date).

European recovery underway

Istanbul Airport led the European results, posting a huge 21.1% increase in freight traffic (total). Others, including Amsterdam (12.3%), Heathrow (10.6%) and Leipzig (9.1%) also posted high growth results.

International traffic has contributed to these improved numbers when it comes to cargo freight transport. This was up 13% when compared to May 2016, with domestic cargo trailing behind but still registering an increase at 6.3%.

Overall, the figures show that the demand for cargo has increased by 8.3% overall during the first five months of 2017, when compared with the same time period of 2016.

Cargo News, Ignazio Coraci

What the industry can learn from BRUcloud, the open community technology platform used at Brussels airport

Leave a comment

Could a new app be a taste of the way our industry uses technology in the future?

 

Brussels airport has already had a great deal of success with its BRUcloud open community platform in recent years – and it seems that freight forwarders at the airport are now embracing the cutting edge data-sharing technology to develop new solutions to old problems.

 

Industry backing

The Customs Export Application was strongly supported by Air Cargo Belgium (ACB) – who represent the country’s air cargo community – and with the advantages it delivers it’s clear to see why the technology has been given the industry body’s backing. The app matches collected manifest data (both from the freight forwarders themselves and existing data that is available within the BRUcloud system) and then automatically reports complete and accurate information to customs. The new technology saves time on all sides – particularly in terms of the amount of time processing air waybills. Customs have also agreed to clear shipments handled via the app first, providing yet another opportunity to speed up processes for all stakeholders.

 

A shared approach

A real key to the success of the app has been the collaborative approach taken by all parties – both in terms of the development of the Customs Export Application and its subsequent roll out.

 

“This collaboratively created app results in a lower administrative burden for all the parties,” says Bart Vleugels, who is advisory general at the Federal Public Service of Finance, Customs and Excise Duties. “Digitization within BRUcargo will further lower the chances of errors and will help to drastically decrease lead times.”

 

Freight forwarders have certainly bought in to the new technology, with 90 per cent of the air freight passing through BRUcargo now using the app.

 

Industry best practice

Ignazio Coraci comments: “The industry can learn a huge amount from the great work done at BRUcargo, not just in terms of the technology itself and its application, but also in the collaborative approach taken to its development by everyone involved. This kind of open cooperation between stakeholders is a model for similar projects.”

Cargo News, Ignazio Coraci

What can the industry learn from KLM’s new air cargo e-commerce strategy?

Leave a comment

The pace at which we all respond to the demands of our customers is critical – and recent investments made by some of the world’s leading air cargo operators suggest that the industry is finally getting the message about e-commerce.

Prime position

The sector is booming within the air cargo industry and KLM Cargo have now invested in a combination-carrier-operated sorting system at its Amsterdam Schiphol airport site that is able to handle package-level air freight. It’s been designed specifically to handle post, express and pharmaceutical cargo.

That means that KLM Cargo should now have the systems in place to fully take advantage of the growth in e-commerce traffic. Marcel de Nooijer, executive vice president of KLM Cargo explains: “E-commerce is a fast-growing branch in the cargo industry. This innovative system allows us to keep pace with the rapid increase in post and express consignments. The system is faster and smarter, allowing us to offer better service to our customers.”

Same-day revolution

KLM Cargo have described the new facility as a world first, and it’s clear that it should now allow the business to make more use of its air freight capacity. KLM Cargo have teamed up with Netherlands-based Parcel International to run 12Send, a new same-day delivery service for Europe. They’ve already piloted the service on routes between Amsterdam and Barcelona, and have held successful trials in London, Madrid and Stockholm.

A lesson for the sector

Ignazio Coraci comments: “This is a sign of things to come. No industry can afford to ignore their customers. The investment made at Amsterdam Schiphol is an indication that businesses are slowly beginning to listen to changing customer needs, and I feel that we are starting to move in the right direction. This kind of investment is essential if carriers want to survive as new markets develop.”