Tag Archives: outlook

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

How global warming could impact air cargo flights

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We’re all too aware of the many disastrous implications of global climate change – from the impact on coastal communities of rising sea levels through to the dangers of increasingly unpredictable seasons on agricultural cycles. But what about our own industry? A recent report in Climatic Change suggests that the implications could be serious for air transportation, and are well worth considering as the effects of climate change become more evident.

 

Serious impact

The report points to the way in which steadily rising temperatures will have an effect on the density of the air in the atmosphere. This has a direct impact on the amount of lift that our planes can generate – with serious consequences in terms of the amount of cargo that the aircraft would be able to carry. In extreme situations it could lead to aircraft being grounded during the hottest periods – with the experts suggesting that up to a third of flights might be prevented from taking off.  If true, the impact of increasing air temperatures would be particularly serious for air cargo operators – especially those who use larger aircraft such as the 777-300. The answer for the air cargo industry could lie in weight restrictions below their maximum take off weight – but the costs could be substantial.

 

A worrying pattern of evidence

“As air temperatures rise at constant pressure, air density declines, resulting in less lift generation by an aircraft wing at a given airspeed and potentially imposing a weight restriction on departing aircraft,” says the report by Coffel, Thompson and Horton. “Our results suggest that weight restriction may impose a non-trivial cost on airlines and impact aviation operations around the world.”

 

Ignazio Coraci comments: “This is troubling news for the industry, because it builds on previous research from 2015 – a compelling pattern is emerging that suggests that climate change could have very serious implications for our industry – not just in terms of cost but also in the quality of the service that we can offer our customers. As an industry we must do everything we can to make sure that the impact of climate change on our industry and the customers we serve is kept to a minimum.”

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

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.”