Tag Archives: Europe

Cargo News, Ignazio Coraci

How CCS-UK will help Heathrow cargo to speed up

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A new module is currently being developed by the user group for the CCS-UK airfreight system. The addition will aim to speed up collections and deliveries at Heathrow Airport’s transit hubs.

The module, which is called CCS-UK Advanced Info, will allow transport companies working for freight agents to alert handling agents to their deliveries. It will also submit Electronic Consignment Security Declarations (eCSDs).

Advanced information

Information, submitted through a web portal (for occasional use) or from the forwarder’s own system (for frequent use), will include driver information, vehicle details, the cargo under delivery, the handling agent’s details and the time the cargo will arrive.

This information will then be available to all involved parties. Deliveries heading to multiple shed operators will be split automatically by the system, so that only data that is directly applicable to the handler will go to them.

Benefits of new module

Queueing will be reduced for agents using the new system as there will be pre-allocated truck doors assigned.

Ignazio Coraci says: “The new module will have many benefits for the whole cargo system at Heathrow. As the handling agents will get the information they need about the cargo directly to their systems, there will be less retyping of information. This will speed up the vehicle processing and make the entire operation more efficient.”

As data stores will capture pertinent information on all drivers, vehicles, transit sheds and users, there will be a cut in the need to re-input data at a later date. A certain amount of documentation will also become null and void, in line with the IATA e-Freight move.

Future of the system

Eventually, it’s planned that External Temporary Storage Facility day sheets and import release documentation will also be replaced by online messages. There are also plans to communicate with forwarders and their transport businesses of their truck statuses.

The new module will initially launch at Heathrow, but will then be implemented in all of the UK’s airport communities. Adds Ignazio Coraci: “This is a major step forward for eliminating unnecessary bureaucracy, minimising inefficiency and lowering costs across the air cargo industry is a welcome one.”

Follow up to CCS-UK Fallback

The announcement of CCS-UK Advanced comes hot on the heels of the launch of CCS-UK Fallback. This improvement to the system provides an electronic safety net should there be an outage of HM Revenue and Custom’s computer system.

As with Fallback, the benefits of CCS UK Advanced are tangible for all parties. Both modules are free extras available to all members of CCS UK.

CCS-UK Advanced Info already in play

Trialling the new module are a handling agent, three air cargo forwarders and an airfreight haulier. The system has proved successful so far and is being rolled out to the whole industry in stages.

Cargo News, Ignazio Coraci

Cargo demand reaches 2017 high

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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

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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?

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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.”

Cargo News, Ignazio Coraci

Hong Kong sees a surge in growth for first half of 2017

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It has been a truly impressive start to the year for Hong Kong International Airport (HKIA), with growth in traffic right across the board. In terms of air cargo business, HKIA has handled an impressive 2.3 million tonnes of cargo already this year in the first six months to June – that’s up a remarkable 11.3% on the same period last year.

Booming exports

So what has been behind HKIA’s great start to the year – and more importantly, do the experts think it will be sustained? Well, in the latest figures from June, 410,000 tonnes of cargo passed through the airport, up 11.4% on 2016 – and there are indications that a 17% year-on-year increase in June exports from the airport led to the high growth in cargo tonnage for that period. That bump in export figures has certainly contributed then to the airport’s positive performance in the first half of 2017, but HKIA has also benefited from an improved global outlook. And with the Asian markets leading the way in air cargo growth, HKIA is in prime position to take advantage of a global economic performance that is looking positive in terms of consumer and business confidence.

Investing for the future

HKIA isn’t standing still, with work starting last August on a third runway to help accommodate future growth. The airport is also making further investments to ensure it meets the needs of customers.

“On the cargo front, HKIA continues to develop its ability to serve fast-growing segments of the high-value cargo business, such as fresh produce and temperature-sensitive pharmaceuticals that require specialised handling,” says an airport spokesperson. “The airport authority and local industry stakeholders are working closely together to pursue the IATA Centre of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma) accreditation on airport community basis and HKIA is expected to be recognised as an IATA CEIV Pharma Partner Airport by the third quarter in 2017.”

A sustainable future

Ignazio Coraci comments: “Clearly Hong Kong is an important site for both our ASC Cargo and SW Italia businesses, and so the news that air freight handling is continuing to grow there is great to hear. I’m also really encouraged by the investment in infrastructure that is being made at HKIA – it will go a long way towards making sure that the performance we’ve seen so far this year is sustained.”

Cargo News, Ignazio Coraci

Is blockchain technology the answer for air freight?

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We’ve talked in this blog before about the need for the air cargo industry to begin to move away from the paper-based systems that so often clog up many of our processes. As our customers become accustomed to services that deliver more responsive, flexible solutions and with the higher service expectations that have grown out of the increasing use of mobile technology, we need to respond quickly.

First steps

The International Air Transport Association (IATA) have already made a number of steps towards doing this, not least through their support of the e-freight digital process transformation programme.

“Our customers are telling us that they expect more,” said Alexandre de Juniac, IATA’s Director General and CEO. “Complicated and convoluted paper-based processes that are basically unchanged from the 16th century are still being used in air cargo today. Our customers pay a premium to ship by air and they rightly expect modern processes and high quality services.

“Shippers today want responsive services based on intelligent systems able to self-monitor, send real-time alerts and respond to deviation. Technologically speaking, this is totally possible. The key to this and other innovations is using data efficiently and effectively. Finding solutions to unfulfilled (or even unrealized) expectations creates value for customers. And that propels a business forward.”

Is blockchain the answer?

Blockchain is often talked about as being just the kind of innovative technology that supports these aims. But what is it, and how can it be assimilated successfully into the processes and systems of a 21st century air cargo industry?

Well, simply put blockchain technology uses a shared digital ledger to record transactions across a number of computers. The advantages for users are that everyone can see any changes made to public blockchains, creating a more transparent process. Every single transaction made on a blockchain is also immutable – so it cannot be altered or deleted by anyone. A blockchain also creates a single ledger, seen by everyone, that any new transactions are added to – cutting down on any complications and removing the need for lots of different ledgers.

Air freight applications

So what would this potentially look like in an air freight operation? Using blockchain technology within this context creates a cloud-based system that is essentially more secure way of recording shipments. And because of the way that blockchain technology works, it’s also secure from hacking – as well as being a permanent record of transitions that is shareable between multiple users.

While blockchain has yet to really be tested thoroughly within an air cargo setting, it’s already made an impact with marine shippers. Here’s what Jody Cleworth, CEO of British freight forwarder Marine Transport International Limited (MTI) has to say: “Blockchain has the ability to empower our industry into a true digital age,” he said. “The sheer volume of containers processed per year means that safely decentralizing the management of these containers will radically reduce the complexities of shipping.”

Time to invest

Ignazio Coraci comments: “Blockchain technology is precisely the sort of innovative solution to age-old problems that we should be applying within our own industry. It’s important that other sectors aren’t allowed to steal a march on the air freight industry by adopting innovations that will serve customers in a way that we can’t offer yet – the time to act is now.”

Cargo News, Ignazio Coraci

Business continuity

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Cyber attacks by hackers are becoming a huge problem in our increasingly connected and technology-driven world.

A growing threat

Recent examples include the global ransomware attack back in May that disrupted many critical systems – not least in the UK’s National Health Service, which was badly affected for a number of weeks, severely impacting patient care. Closer to home in – terms of the air freight industry at least – was the attack on marine container shippers AP Moller Maersk, that saw a large number of their critical IT systems hit by the so-called ‘Petya’ operation.

One of the key phrases that is usually heard in the aftermath of such attacks is the need for a more robust procedure around ‘business continuity.’ But what does this really mean, and what steps has the industry already taken to lessen the impact of similar attacks – or even global IT system failures such as the one that recently hit British Airways – in the future?

Plan B

A new system that has been implemented in the UK might give some clues as to the future shape of our industry’s response to this issue. The ‘CCS-UK Fallback’ system is intended to allow the UK air cargo industry to continue running in the event of any prolonged problems with the HMRC’s vital CHIEF (Customs Handling of Import and Export Freight) system. The new system means that traders will be able to continue processing Customs export declarations even with CHIEF down, and it has been designed to run for 30 days. The system’s development is a great example of collaboration between the private sector and government to safeguard an industry that’s worth billions.

“We have recently seen the horrendous impact of major IT system failures in aviation, and this cannot be allowed to happen to the UK air cargo industry which provides essential support to UK trade and industry, helps maintain our competitiveness on the world stage and supplies urgent commodities that are sometimes a matter of life and death,” says Steve Parker, DHL’s Head of Customs for Europe and Chairman of the CCS-UK User Group.

Safeguarding our customers

Ignazio Coraci comments: “The CCS-UK Fallback system is a real step forward, and I think it could be used as a model right across the sector. The service that we provide as an industry must have effective protection and we should all have business continuity plans in place – it’s the least we owe to the millions of customers who rely on us.”

Cargo News, Ignazio Coraci

The outlook for 2017

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The air freight industry has made an encouraging start to the year – at least compared to 2016 – and while the picture isn’t completely rosy it’s clear that the outlook for the coming months is looking healthy.

A positive forecast

We’re basing this on a couple of key pieces of information – IATA’s air cargo stats for the three months ending in April, and recent comments made by IATA’s director general at their annual general meeting in Cancun in June. But how about those figures? Well, all of the key indicators that suggest a more buoyant market are heading in the right direction. The seasonally adjusted figures saw cargo yields rose by 4.5%, while Freight Tonne Kilometres (FTK) were up 10.5%. Add to that the news that air freight now has an increased market share and the signs are there that we’re currently on the upward portion of this particular economic cycle. Other indicators such as consumer confidence, export orders, trade, silicon and semi conductor sales are also looking good, suggesting an industry in good shape.

Improved profits

IATA director general Alexandre de Juniac made his comments in the light of overall airline industry figures that suggest expected profits of $31.4 billion for 2017 – that’s $1.6 billion better than the $29.8 billion IATA projected in its last forecast of the year ahead. Discussing the new projections, de Juniac pointed to the more robust recent performance of the air freight industry.

“Strong demand is driving profitability,” he says. “That includes air cargo, which has awakened from a six-year coma. 7.5% growth is being powered by e-commerce and pharmaceutical shipments.”

Clouds on the horizon?

So far so good then. But there are a couple of caveats to the positive outlook for the rest of the year which are worth bearing in mind. The first is the threat of rising costs, while the differential in profitability between regions is also a cause for concern.

“Margins are being squeezed by rising costs for fuel and labour,” says de Juniac. “Moreover, profitability is not equally spread across the regions. Half the industry’s profits are being made in North America. Asia, Latin America and Europe are generating sustainable profits, but only just. And Africa and the Middle East are struggling.”

A chance to prepare

Ignazio Coraci comments: “The outlook for the rest of 2017 is certainly encouraging, especially compared to last year. It’s great news – however we also need to be mindful of how we will maintain the standards of service we currently offer in the light of any rising costs to come.”

Cargo News, Ignazio Coraci

Poor weather and volcanic ash are affecting flights

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Bogoslof Island might be small, but the impact it’s having on transpacific air freight operations has been significant in recent months.

A major impact

The volcano is located in Alaska and is a part of the Aleutian island chain that arcs between the Asian and American landmasses. It first erupted back in May, and has remained active ever since – with serious implications for the many transpacific routes whose flight paths cross the region. Eruptions in late June sent a huge amount of ash and steam into the atmosphere to a height of around 36,000ft – right into the path of many crucial air freight routes.

Experts say that the disruption could continue for a while yet.

“The volcano remains at a heightened state of unrest and in an unpredictable condition,” says the Alaska Volcano Observatory “Additional explosions producing high-altitude volcanic clouds could occur at any time.”

Major disruption

The volcanic activity at Bogoslof has led many air freight operators in the region to adjust their schedules, with a number of flights being cancelled as a result of the ash cloud. It’s a situation that puts increased pressure on a region already suffering as a result of poor weather in Shanghai and Hong Kong. It means that space is tight and that capacity is down for some companies.

Bad weather in China has also affected flights to the EU, once again seriously impacting the amount of space available. “Airlines are increasing rates to the EU, and bad weather meant about 20 flights in and out of Hong Kong have been cancelled,” one forwarder told The Loadstar, “So space to the EU is really affected.”

Hard to predict

Ignazio Coraci comments: “Natural events are hard – if not impossible – to see coming. However I believe that we can all try to build the capacity into our business models to ensure that the impact of these events is lessened in the future. Unfortunately the pressure that these situations put on our industry mean that it’s likely to have an impact not just on capacity, but prices as well.”

Cargo News, Ignazio Coraci

Freight Rises Across Europe’s Airports in February 2017

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New figures show that the volume of freight passing through Europe’s airports increased in February, suggesting that the continent’s air cargo market is stronger than ever. Ignazio Coraci comments.

Rich markets

Europe is one of the richest regions on earth, with some of the biggest economies in the world including the UK, France and Germany. The continent’s wealth and hungry consumer markets, coupled with the rise of e-commerce, have made Europe an increasingly lucrative place for air cargo firms.

We are seeing Europe’s airports thrive within this environment, as air cargo firms transport goods through these pivotal gateways in ever-increasing numbers. Just look at Heathrow airport, the primary gateway for the UK’s booming capital London, as an example. Last year, the expansion rate of cargo which passed through Heathrow outpaced its passenger growth, showing that business is booming.

High growth

According to Air Cargo Week, an industry portal, Europe’s airports kept recording growth early into 2017, as their freight traffic ticked up by 3.4% of February this year. The best performer for February was Frankfurt airport, as the gateway saw its air cargo volumes expand by 2.2%, hitting 153,870 tonnes, in February, while in the first two months of the year, its air freight growth came in a 4.2%.

These figures were released by sector body the Airports Council International (ACI) Europe, who also noted that Heathrow performed well during the first two months of the year, recording respectable air freight growth of 4.2%, meaning that 251,212 tonnes passed through Heathrow in this period. Also Heathrow themselves have announced that their freight volumes grew by 4% in February 2017, contrasting slightly with ACI Europe’s figure for the airport’s February expansion, which was 4.4%.

What was interesting was that ACI Europe recorded stronger progress in non-EU, than EU airports. According to the body, non-EU airports experienced 4.7% air cargo growth during February, while EU airports racked up 2.7% in air freight expansion. Meanwhile, the air cargo growth rate for all of Europe was 5.4% in the opening two months of this year, with the expansion rate coming in at 9.1% and 4.8% for non-EU and EU airports.

Major progress  

Commenting on the release of ACI Europe’s latest figures, Ignazio Coraci said: “It is apparent that 2017 got off to a great start for the airports of Europe, with their air cargo volumes expanding, in year-on-year terms, fairly significantly. It is clear that as the dust settles from an eventful 2016, and consumers buy goods in ever-greater numbers online, the European air cargo sector has benefitted, suggesting the coming year could be a positive one for one of the world’s most lucrative air cargo sectors.”