SWISS forwarding giant Panalpina has launched four less-than-container load (LCL) services for Latin America through its in-house carrier Pantainer Express Line and connecting to important ports of Santos; Port of Veracruz, Mexico City; Port of Guayaquil, Ecuador and Port of La Guaira, Venezuela.

The new guaranteed weekly services will connect Buenaventura (Colombia) with Guayaquil (Ecuador) and Colon (Panama) as well as Santos (Brazil) with Colon and Veracruz (Mexico) with La Guaira (Venezuela). Transit time from Mexico to Venezuela is reduced by 15 days.

The new LCL services will provide weekly pickup and deliveries to Buenaventura to Guayaquil and Santos to Colon; Buenaventura to Colon and Veracruz to La Guaira. The new direct service from Veracruz to La Guaira allows for a 12-day transit time, a reduction of 15 days from the previous routing. Direct transit from Buenaventura to Colon takes four days and six days to Guayaquil. Transit time for Santos to Colon is 17 days.

The service to Panama will allow customers access to Central America and Caribbean and existing services that Panalpina operates out of Colon to Central America and the Caribbean.

"The service from Santos to Colon is a great example," said Panalpina's country manager for Panama Markus Jornot in a statement of Colon as a natural transshipment port from Panama Canal. "It connects Brazil's booming economy with Central America."

Source Shipping Gazette - Daily Shipping News

GLOBAL supply chain provider CEVA Logistics has started three less than container load (LCL) services from Shanghai and Singapore to three locations in Australia: Sydney, Melbourne and Fremantle, the company said.

Transit time from Shanghai to Sydney is 16 days, serving the Brisbane area. With expedited cargo clearance at CEVA's container freight station (CFS) upon arrival, delivery to final destinations in Sydney happens just three to five days after the vessel arrives in port and to Brisbane within a further two days.

The Shanghai-Melbourne transit, also serving Adelaide, is 19 days and also benefits from faster freight availability through CEVA's CFS in Melbourne. The company is delivering locally in Melbourne within three to five days of vessel arrival, with guaranteed overnight transit to Adelaide. Both the Brisbane and Adelaide moves are managed by CEVA Ground, CEVA's specialist organisation which provides full transport management services through its integrated road linehaul service.

The Singapore to Fremantle transit time is seven days, with faster freight availability at CEVA's Perth CFS.

Shanghai and Singapore's strategic locations make them ideal regional hubs to connect Asia with the rest of the world, and CEVA's integrated network offers direct access to over 100 transshipment destinations throughout southeast Asia and the Indian subcontinent.

Said CEVA's LCL chief Greg Scott: "With Shanghai and Singapore recognised as two of the world's busiest ports, these new routes provide much needed services into Australia. Goods are safely in CEVA's control from start to finish."

Source Shipping Gazette - Daily Shipping News

GLOBAL provider of e-commerce solutions to the ocean freight industry, INTTRA, and Tradeshift, an online electronic invoice network, have devised a method to enable carriers to manage invoices and resolve billing disputes on common electronic platform.

"Tradeshift brings affordable e-invoicing to companies by consolidating all their suppliers onto a single network in the cloud," said Tradeshift CEO Christian Lanng.

"Our alliance with INTTRA brings an integrated electronic invoicing solution to ocean freight carriers, forwarders, and shippers that enables them to implement effective and efficient electronic invoicing across their entire organisation. It provides for the complex ocean-specific invoicing and electronic dispute management that they require."

Said INTTRA chief executive Ken Bloom: "INTTRA eInvoice provides ocean carriers and their customers with electronic invoice presentation, automated matching of carrier invoices to estimates, and automated dispute management capabilities that can be implemented in concert with any electronic invoicing and payment system."

Source Shipping Gazette - Daily Shipping News

THE untamed world economy, propelled by unsustainable lifestyles and the uncontrolled exploitation of natural resources, carries the seeds of its own destruction, as massive climate change inches closer, natural disasters occur more often and frequently disrupt supply chains.

This is the dark world view espoused by Deutsche Post DHL as outlined in its new study: "Delivering Tomorrow - Logistics 2050."

It said that from the perspective of the logistics industry the possible scenario outlined above would lead to a massive increase in demand for logistics and transport services, with companies even outsourcing their production processes to logistics companies.

The study paints five different scenarios of the potential state of the world in 2050 and explores the likely impact these scenarios would have on the logistics industry.

"All of us must realise that it is our responsibility today to set the direction for tomorrow and the day after tomorrow. The new study shows, in a particularly striking and, at times, even drastic way, just how strong the impact of these decisions can be," said group CEO Frank Appel.

"It is part of our responsibility to intensively explore social and business issues that will shape the future. We do not want to be caught off guard by developments and trends. Rather, we want to actively shape the future" by facilitating public debate, for example.

Another scenario is of climate change opening up shorter and more efficient trade routes through the Arctic ice. However, the authors of the report warn: "The increase of extreme weather events causes repeated disruptions to the supply chain and raises capital costs for logistics companies.

"Disaster response and contingency planning becomes more important as the number of natural disasters around the world continues to rise. The growing scarcity of energy resources, higher energy prices and costlier raw materials mean smaller profit margins. As a result, not only offshoring but also nearshoring are common business strategies."

In a further proposed scenario: "Robotics has revolutionised the world of production and services. Consumers have switched from product ownership to rent-and-use consumption. Highly efficient traffic concepts, including underground cargo transport and new solutions for public transport, have relieved congestion. Zero-emission automated plants have helped to cut carbon emissions. A global 'supergrid' transport network with mega transporters, including trucks, ships and aircraft, as well as space transporters, has opened important trade connections between the megacities of the world.

In this type of world, "the logistics industry is entrusted to run city logistics, utilities, as well as system services for airports, hospitals, shopping malls and construction sites, along with part of the public transport infrastructure. It also manages the complex logistics planning and operations for advanced manufacturing tasks," it said. "In response to 'dematerialisation' of consumption, logistics companies offer an array of renting and sharing services, as well as secure data transfer."

The report also offers a four scenario for the world in 2050, whereby, the logistics industry consists of an online and offline segment. "The offline segment integrates the transport of raw materials into manufacturing logistics and reverse logistics. The online segment ensures secure data transfer and secure data retail in online shops. Strong regional logistics capabilities and a high quality last-mile network become important success factors because of the decentralised organisation of production," it envisions.

Source Shipping Gazette - Daily Shipping News

CHINA's airlines have suspended purchases of 10 Airbus jets over a rift between Beijing and Brussels grows over the EU's aviation carbon emissions tax, Reuters reported.

Citing unidentified sources it was also reported Airbus confirmed China had blocked the purchase of 35 long-haul A330s and 10 Airbus A380 superjumbos worth US$12 billion.

Two sources familiar with the matter said China would delay 10 more A330 long-haul planes from the European aircraft maker, on top of the thirty-five A330s and ten A380 superjumbo jets blocked earlier last week.

In total, sales of 55 Airbus planes worth US$14 billion have now reportedly been put on hold - about 10 per cent of all Airbus planes ever delivered to China.

While Airbus did not say which airlines had delayed their purchases, insiders say it was Hong Kong Airlines, 46 per cent owned by the Hainan Group. China,the US and other countries, oppose the carbon tax based on CO2 emissions over whole flights rather than EU airspace alone, say the measure exceeds EU jurisdiction. But the European Commission says the tax is needed to fight climate change and the European court supports that view.

This comes as efforts are underway to find a solution to the dispute, which airlines say risks a trade war which would be injurious to all parties.

China has so far limited retaliation to wide-body jets capable of reaching Europe, not short-haul A320s assembled in China for domestic use.

While the A380 purchase is a done deal and a cancellation would involve the loss of a deposit, the threatened A330 deals await approval of the Chinese government.

Meanwhile, the US rival Boeing looks forward to mega sales for its 777 long-haul mini-jumbo, which has been selling well in China. "I think you're going to see both sales of narrow-bodies and wide-bodies [in China] continue to grow," said Boeing commercial chief James Albaugh.

"We sold thirty 777s over there last week and had a lot of discussions with other customers about more," Mr Albaugh said.

A Boeing spokesman said these included 10 jets already announced. Boeing is in "advanced discussions" for the other 20.

Source Shipping Gazette - Daily Shipping News

EMIRATES SkyCargo, the cargo division of Dubai's Emirates airline, is forecasting a challenging 2012 for cargo traffic from India despite an increase in outbound cargo traffic, representing 11.7 per cent of throughput to 1.8 million tonnes.

Emirates cargo vice-president Pradeep Kumar said "growth is going to be flat or even less", but expects improvement in the second half of the year. India contributes up to 30 per cent of Emirates SkyCargo's perishable goods with 20 per cent accounted for by pharmaceutical products and 11 per cent by auto parts.

India's civil aviation minister Ajit Singh said at the sidelines of the India Aviation Show that he hopes the formulation of an Air Cargo Promotion Policy will bring in international investment through better practices.

Mr Singh is confident of continued strength, with the compound annual growth rate clocking up 10.9 per cent in the last five years.

Source Shipping Gazette - Daily Shipping News

AIRPORTS in southwestern China's Guangxi Autonomous Region handled 8,430 tonnes of cargo in February, 60 per cent more than the same month in 2011.

According to Xinhua, Nanning airport's throughput surged 68 per cent to 5,440 tonnes. Guilin airport handled 2,145 tonnes, up 40 per cent. Beihai airport handled 292 tonnes, up 57 per cent. Liuzhou airport recorded an increase of 72 per cent to 550 tonnes.

The surge of cargo throughput in February was affected by the Chinese New Year holiday in January, which usually comes in February. After removing this factor, Guangxi's air freight throughput achieved a double-digit increase.

From January to February, Guangxi airports handled 16,800 tonnes of cargo, up 9.4 per cent year on year. Nanning, Beihai and Liuzhou airport all recorded increases of more than 15 per cent during this period.

This year, Guangxi is aiming to develop Nanning into the largest trade and distribution centre for fruit and aqua products in China with hopes that Guilin can be developed into a cargo logistics hub between southwest China and Pearl River Delta and Yangtze River Delta.

Source Shipping Gazette - Daily Shipping News

RUSSIA's Volga-Dnepr group plans to acquire Frankfurt Hahn-based Air Cargo Germany (GU) after its cargo airline AirBridgeCargo Airlines failed to gain fifth-freedom rights for flights from Frankfurt to Chicago.

According to industry experts, GU is not thought to be a profitable asset but its routes deployed by four 747-400s to China, South Africa, India and the United Arab Emirates is attractive to Volga-Dnepr keen to gain a foothold in services from Europe.

Source Shipping Gazette - Daily Shipping News

AIR INDIA's bail-out, paid as a capital infusion worth INR32 billion (US$616.5 million) was approved on the promise of improved performance and an efficient turnaround, said the Ministry of Civil Aviation.

"We will bail it out, but not indefinitely...[the carrier] has to improve its efficiency," said minister Ajit Singh on the sidelines of the Indian Aviation Show in Hyderabad, on a carrier struggling with debt of INR430 billion.

Boeing has agreed to pay half of Air India's compensation demand at US$500 million for its delayed delivery of 27 Dreamliners on order since 2006 for delivery start of 2008, reports the Press Trust of India. This was part of a larger order of 111 aircraft including those from Airbus worth $13 billion.

The government aims to push for more from the aircraft manufacturer to include discount in services and cash.

It is confident that India can weather a tough market of high jet fuel costs and decline based on a rise in demand for Asia-Pacific carriers. India itself is forecast to grow from a increase of compound annual growth rate (CAGR) 10.9 per cent in last five years, of which two-thirds was international volume.

Its passenger growth is the fastest set to rank in the first three markets of 420 million passengers by 2020 compared to 2010's figures of 140 million.

The state's focus on Public Private Partnership (PPP) in the airport sector has increased the number of Greenfield and modernisation projects is dependent on economic regulatory framework in an Air Cargo Promotion Policy it hopes to attract investment.

Source Shipping Gazette - Daily Shipping News

EMIRATES SkyCargo, the cargo division of Dubai's Emirates airline, is forecasting a challenging 2012 for cargo traffic from India despite an increase in outbound cargo traffic increase representing 11.7 per cent of its total throughput at 1.8 million tonnes.

The freight arm's senior vice-president Pradeep Kumar said "growth is going to be flat or even lesser" but expects improvement in the second half of the year. India contributes up to 30 per cent of Emirates SkyCargo's perishable goods, 20 per cent pharmaceutical products and 11 per cent automotive parts.

India's civil aviation minister Ajit Singh said at the sidelines of the India Aviation Show that it hopes its formulation of an Air Cargo Promotion Policy will bring in international investment through better practices as in Celebi, Cargo Service Centre and Menzies.

Mr Singh is confident of continued strength in annual growth rate, CAGR clocking up 10.9 per cent in the last five years.

Source Shipping Gazette - Daily Shipping News

TAC Industries, a nonprofit organisation, in Springfield has been awarded a US$6.5 million contract to provide the US Air Force with 35,000 air cargo nets during the next year, according the Department of Defence.

The contract calls for TAC to provide more than 13,000 tie down-top nets and nearly 24,000 tie down-side nets to the Support Equipment and Vehicle Division at Robins Air Force Base, Georgia. The work is expected to be completed next March, the Dayton Daily News reported.

The work will help subsidise TAC Industries, which was formed to create for people with disabilities.

TAC is the primary supplier of air cargo nets to the USAF, according to the organisation's website. These cargo nets are used by the air force for load management on the 463L pallet used on C-5, C-17 and C-130 cargo aircraft.

Since 1984 TAC has performed a vital defence operational role by repairing damaged air cargo nets to like-new condition and manufacturing new nets to meet all of the demanding airlift requirements of the Air Force, officials said.

Source Shipping Gazette - Daily Shipping News

AIRPORTS in southwestern China's Guangxi Autonomous Region handled 8,430 tonnes of cargo in February, 60 per cent more than in the same month in 2011.

According to Xinhua's report, Nanning airport's throughput surged 68 per cent to 5,440 tonnes. Guilin airport handled 2,145 tonnes, up 40 per cent. Beihai airport handled 292 tonnes, up 57 per cent. Liuzhou airport recorded an increase of 72 per cent to 550 tonnes.

The surge of cargo throughput in February is affected by the Chinese New Year holiday in January, which usually comes in February. After removing this factor, Guangxi's air freight throughput still has a double-digit increase.

From January to February, Guangxi airports' handled 16,800 tonnes of cargo, up 9.4 per cent year on year. Nanning, Beihai and Liuzhou airport all recorded increases of more than 15 per cent during this period.

This year, Guangxi is aiming to develop Nanning into the largest trade and distribution centre for fruit aqua product in China and even Asia and develop Guilin into a logistics hub for cargo flows between southwest China and Pearl River Delta and Yangtze River Delta.

Source Shipping Gazette - Daily Shipping News

The International Air Transport Association (IATA) called on India to develop a common vision for Indian aviation expressed in a National Aviation Policy with a strong implementation plan.

“Indian aviation has tremendous potential to drive economic growth in the sub-Continent. But to realize this, India needs a common vision for aviation—expressed in a National Aviation Policy strongly linked to an implementation plan. Such a policy would need to re-build competitiveness by addressing the difficult issues of tax, cost, investment and infrastructure,” said Tony Tyler, IATA’s Director General and CEO in a keynote address at the India Aviation 2012 conference, noting considerable ground work already done by the Ministry of Civil Aviation (MOCA) in consultation with industry stakeholders.

Aviation is responsible for 0.5% of India’s GDP and supports 1.7 million jobs. And people on average in India make 0.1 trip per year, or one trip by air every 10 years, compared to 1.8 times per year in the US.  “Aviation’s contribution to the India economy could be much more.  If India’s 1.17 billion people traveled at the same frequency as in the US, a market of 2.1 billion travelers would be created.  Even one-third of that would be an air travel market of about 700 million, rivaling that of the US,” said Tyler.

Tyler suggested a four pillar agenda to build competitiveness:

Taxes: Tyler highlighted the damaging effects of jet fuel taxes in India. All fuel is subject to an 8.24% excise duty and domestic flights face state fuel taxes of up to 30%. As a result, fuel represents an average of 45% of operating costs for India’s airlines, compared to a global average of 32%. “The high cost of jet fuel has been hijacking the competitiveness of the Indian air transport industry for over a decade. It is now clearly recognized by all that fuel taxes are sucking the life blood from the Indian aviation sector. The industry is now in crisis and we need a coordinated effort among all Ministries—at national and state levels—to restore competitiveness,” said Tyler. Tyler also urged the removal of Service Tax on both tickets and on services that airlines purchase, to align with international principles and boost competitiveness.

Infrastructure: Tyler highlighted the need for capacity expansion in Mumbai. “Mumbai is bursting at the seams. The first phase was meant to open in 2014 but construction has not even begun. Land acquisition is not yet complete. We need a coordinated effort across all government ministries to facilitate success without further delay—as was achieved for the opening of Delhi’s new terminal,” said Tyler.

Cost: Tyler urged MOCA to intervene in the discussion of proposed charges increases at Delhi International Airport. “The new terminal and third runway have been a much needed boost. But if the 340% increase in charges over the next two years is implemented, it will make Delhi the most expensive airport in the world—and destroy its competitiveness,” said Tyler.

“Given the broad economic implications that this would have it is important that the government takes immediate action. First, 340% is unacceptable. It would be a shock to the system that would ripple throughout the economy. The Ministry cannot stand by and let this happen. It must intervene with a broader context. This should take into consideration the long-term development of Indian aviation at its hubs. And if need be, the concession contracts, which at Delhi channel 46% of revenues to the Airports Authority of India, need to be re-thought with the aim of offsetting aeronautical charges. The solutions are readily available and there is no reason why the 340%, or any increase of this magnitude, should be allowed to go through,” said Tyler.

Tyler also urged that (1) any legitimate revenue claw-back under the current regulatory structure be spread across a number of years, not crammed into the next two, (2) an urgent review should look at the structure of charging for international versus domestic and (3) there should be a review of the allocation of aeronautical and non-aeronautical assets to be more in line with other major international airports.

Investment policies
: Tyler urged the positive consideration of MOCA proposals to allow up to 49% direct investment by foreign carriers in Indian airlines. “This would allow strategic tie-ups with foreign airlines similar to arrangements that have successfully strengthened airline groups in other parts of the world. What is the public policy imperative of denying this possibility to Indian carriers?” questioned Tyler.

“But allowing foreign airlines to invest in Indian aviation is not a panacea. Without addressing the other three pillars—costs, taxes and infrastructure—it may only be a theoretical exercise. Under current conditions, the odds are stacked against any investor making a positive return on investment in the Indian aviation sector. And no one is likely to come forward unless they see themselves making a profit,” said Tyler.

Tyler expressed optimism that India has a promising aviation future if these issues can be addressed. “I am passionate about aviation. And I am an India optimist. IATA will be fully engaged in the team effort to turn Indian aviation into the great success story that it has the potential to become. India should not settle for a bronze medal in the world of aviation. It has pure gold potential,” said Tyler.


Source IATA
Safety, Security, Sustainability and Competitiveness Top the Agenda


The International Air Transport Association (IATA) advocated strong partnerships across the air cargo value chain to address an industry agenda to enhance safety, security, sustainability and competitiveness.

“Air cargo is critical to the global economy. By value, over 35% of goods traded internationally are handled by air. But this accounts for just 0.5% of global volumes traded. Air cargo provides the connectivity that is at the core of modern businesses serving global markets. The growth potential is enormous. The challenge is to propel that growth sustainably, with quality products, efficiently delivered by a well-coordinated value chain,” said Tony Tyler, IATA’s Director General and CEO in a keynote address to the World Cargo Symposium which is meeting in Kuala Lumpur, Malaysia.

Safety: The 2011 hull loss rate for western-built jet aircraft stood at the historic low of 0.37 hull losses per million flights (one hull loss for every 2.7 million flights). However,managing shipments of dangerous goods is an increasingly complex challenge for air cargo as the number of shippers proliferates, particularly with the growth of e-commerce opportunities for individual entrepreneurs, who lack awareness of dangerous goods regulations.  “The concern over shipping lithium batteries is a good example of where the supply chain needs to cooperate to raise awareness levels,” said Tyler.

Security:Tyler urged the industry to work together and in cooperation with governments on industry solutions for cargo security, or risk the imposition of regulatory solutions that may not fully understand the operational realities of global air cargo. “The challenge is two-fold. We must continuously improve security to meet evolving threats. And we need to achieve this while maintaining the speed necessary to support global commerce,” said Tyler. He highlighted three areas for a particular focus:

  • Data to Support Risk Management:Tyler encouraged regulators to harmonize risk-assessment measures in compliance through the World Customs Organization SAFE standards. At the same time he urged the air cargo value chain to redouble its efforts to improve the quality of data provided by making the Message Improvement Program a priority for 2012. “Ensuring quality data will gain the confidence of regulators and customs authorities that is necessary to motivate them towards efficient paper-free processes,” said Tyler.
  • Securing the Supply Chain:   The IATA Secure Freight pilot program was launched in Malaysia in 2010 with the goal of securing the supply chain by ensuring that air cargo has come from either a known consignor or regulated agent and has been kept sterile until it is loaded onto the aircraft. The success of the Malaysian pilot project has encouraged Kenya, Mexico, Chile, South Africa, Egypt and the United Arab Emirates to start their own programs.
  • Technology:Tyler noted progress with regulators on addressing the constraints on current technology in screening air cargo. “It is clear that a robust risk-assessment needs both physical and data screening programs that are harmonized. The worst thing for both industry and states would be to have these programs competing with each other across airline networks,” said Tyler.


Competitiveness:  “Alongside a license to grow based on safety, security and environmental responsibility, to be successful the air cargo value chain must meet customer expectations with efficient and quality products and processes,” said Tyler, highlighting e-freight and the industry’s need to adopt Cargo 2000 as a global standard.

  • E-freight: E-freight penetration stood at 11% at the end of 2011, ahead of the 10% target set by the IATA Board of Governors. “I see three components to achieving 100% by 2015. First, we need to understand e-freight is a supply chain initiative driven forward by the Global Air Cargo Advisory Group (GACAG). Second airlines must drive forward the implementation of the e-air waybill (e-AWB). Cathay Pacific and Emirates have led the way with mandating 100% e-AWB in their home markets. And finally we must ensure that the rapidly developing BRICS countries are on board,” said Tyler. Current e-AWB penetration is 4.6%.  IATA is targeting 15% e-AWB penetration by the end of 2012 and 100% by 2014.
  • Quality: In the last year Cargo 2000 made its Master Operating Plan an open source platform. “This effectively makes Cargo 2000 the industry benchmark for performance and quality. They will also be introducing a membership grading system to further identify the highest-quality participants. These are positive steps that will help us to provide quality products to our customers,” said Tyler. Tyler reiterated that managing quality requires a harmonized approach across the value chain, noting the industry agreement to mandate the “Time and Temperature Sensitive” label as an important example of improvements that can be achieved when the industry works with a common purpose.


Industry Cooperation: Air transport is a team effort. And that is particularly true of air cargo. I am also making it a priority for IATA to work even more closely with our industry partners.  For example we are working to modernize the cargo agency program in close collaboration with the International Federation of Freight Forwarders Associations (FIATA).  I am also fully supportive of the GACAG. This group is unique in the air cargo industry and we must all support the efforts of this coalition. All its members won’t always have the same view of the world. But our fates are linked as we are in the same business. By focusing on our common interests, I am confident that much can be achieved,” said Tyler.

Outlook

In its latest forecast (issued December 2011), IATA expects air cargo to generate about 11% of total revenues or $66 billion. This is only slightly behind the average 14% contribution of business class to industry revenues. Growth in both volumes and yields is expected to be flat in 2012 as a result of economic uncertainty primarily centered on Europe. IATA will issue a revised forecast on 20 March.

Source IATA


Minister Heidi Hautala, responsible for Ownership Steering in the Prime Minister’s Office, has assigned Senior Financial Counsellor Jarmo Väisänen to convene the Shareholders' Nomination Committee of Finnair as soon as possible, and to prepare a new proposal concerning the composition of Finnair's Board of Directors at the company's Annual General Meeting to be held on 28 March 2011. Minister Hautala believes that Board members who in autumn 2009 participated in decision-making concerning management’s special retention bonuses will not be able to credibly serve as Finnair Board members in the future.

The Shareholders' Nomination Committee comprises, based on their ownership in Finnair as of 1 November 2011, representatives of the Finnish State, Local Government Pensions Institution and Skagen Global Verdipapirfond, i.e. Jarmo Väisänen, Robin Backman and Michael Gobitschek respectively.

Finnair will disclose the Nomination Committee's new proposal on Board members as soon as the Committee has submitted its proposal to Finnair's Board.

Source Nasdaqomx
 

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