|
The Cargo Letter
|
|
Section A: Section: Trade, Financial & Inland News|
Section B: FF World Air News |
Section C: FF World Ocean News | Section D: FF in Cyberspace |
Section E: The Forwarder Broker World
Freight Forwarder World Air Briefs
- IACs Fly All The Way With TSA ........
as the Transportation Security
Administration assumed responsibility for all security within aviation for
U.S. passengers & cargo Feb. 18. There will be no more FAA security division.
Gerald Moore, Dangerous Goods & Cargo Security program manager for FAA's
Western Pacific region recently addressed the new federal agency & asked that
the industry, "particularly indirect air carriers (IACs), be patient with
FAA's necessary changes to emergency amendments to the "Known Shipper Rules,"
which require that IACs verify a shipper. Carriers have to adhere to more
frequent changes on these amendments. "If you think you've got it bad, just
try being an airline for a while," Moore said. "The content of air cargo
security mandates is a national security issue that cannot be discussed
openly, for fear that terrorists may obtain such information," he added.
"They are carrying out what they believe is to be righteous for their cause,"
he said.
- Ten Year Low ........
as the Int'l Air Transport Assn. (IATA) has
released a report saying that Int'l scheduled air traffic has dipped
year-on-year for the 1st time since 1991. Int'l air freight last Dec. was
down nearly 10% when compared with the same month in 2000, while the figure
stood at nearly -8% for the whole year. Passenger traffic was also down
nearly 12% & 4% respectively. During 2001, total traffic, including
passengers & freight, fell by nearly 6% against a total capacity decrease of
less than 1%. "There are two hopeful signs," said Pierre Jeanniot, IATA's
director general & CEO. "Capacity cuts in Dec. were in line with market
conditions, & we know from our Corporate Air Travel Survey that a pick-up in
business travel may not be far away." IATA says airline industry lost about
US$15B last year. It is estimated that the IATA carriers lost US$10B -- U.S.
carriers lost between US$3B & US$5B on their domestic services.
- But 2000 Was Great ........
as IATAs latest financial report,
Airline Economic Results & Prospects, provides an analysis of data from of 52
airlines, taking the overall coverage of the report to 66.5% of total IATA
Int'l scheduled revenue ton kilometers (RTKs) for 2000. Some of the key
highlights from the analysis include figures showing operating revenues for
Int'l scheduled traffic rose by 7.1% in 2000, in line with the 6.9% growth in
revenue for the whole of the IATA member airlines over the period (published
in IATA's June 2001 edition of World Air Transport Statistics). Growth in
operating expenses, 6.2% (again in line with the 6.9% increase in the IATA
member airlines operating expenses) meant that the operating result for the
total sample of airlines was US$4.1B in 2000 An increase of 8.2% in total
Int'l scheduled traffic exceeded an increase in total capacity by 2.3 points.
As a result the total weight, load factor increased 1.4 points to 66.7%.
Thus, despite rising fuel costs & the overall unit yield (per RTK) for the
carriers falling by 1.0% (driven by most participating carrier currencies
weakening against the U.S. dollar), the net result improved by over 100% to
US$2.3B. A 7.8% increase in cargo RTKs & a 6.7% increase in cargo capacity
(available ton kilometers), contributed to a 1.4 point increase in the
overall weight load factor achieved, to 66.7%.
- Rudder Watch ........
as the tail fin of an American Airlines jet was
likely under enormous stress before it snapped off the aircraft, which then
plunged into a New York neighborhood last year, killing 265 people.
Preliminary engineering & other analysis of the crash of Flight 587 last Nov.
12 shows the Airbus A300-600 was moving straight at 290 mph (465 kph) with
its nose pointing 10 degrees left of center. In addition, the plane's rudder
was deflected to the right. The National Transportation Safety Board said
Airbus engineers determined that that combination produced forces on the
right side of the vertical stabilizer, that might have exceeded design
standards. Pilots generally use the rudder during flight to position the nose
of the aircraft while turning. Other flight controls actually turn the plane.
With the crash probe focusing closely on the plane's rudder, the safety board
issued new guidance on the aggressive use of flight controls in certain
situations.
- Preventing Fuelishness ........
as demand for kerosene jet fuel after
the Sept. 11 attacks slumped by 9% in the 4th quarter on average across the
industrialized nations of the OECD, led by a 14% dip in North America, the
Int'l Energy Agency (IEA) said in its monthly oil market report. "Even if air
travel & cargo demand were to recover fully, it seems unlikely that jet
fuel/kerosene demand would return quickly to pre-Sept. levels," the report
said. The World Trade Center attacks are often cited as the cause of the
airline industry's troubles, but ambitious carriers had already overreached
themselves, creating unfeasible levels of demand that are unlikely to be seen
again soon, the agency said.
- Hong Kong Int'l Airport Gets The Vote ........
as it has been named
"Cargo Airport of the Year - 2002." London-based Air Cargo News has presented
its "Cargo Airline of the Year" awards over the past 19 years, but this is
the 1st year it has honored a "Cargo Airport of the Year." Each airport
considered for the award was appraised according to improvements,
innovations, special features & services that made the airport more
attractive to air cargo customers. In 2001, HKIA handled 33 million
passengers, 2.08 million tons of air cargo & 196,800 flight movements. We'll
take that other place -- LAX, which in 2001 processed 1,956,340 tons of cargo
& served 61.6 million passengers.
- McCarran Gets 911 Benefit ........
as Las Vegas air travelers are
arriving hours early these days -- & gambling more at McCarran Int'l Airport,
where slot machines sit side-by-side with baggage carousels & departure
gates. The result of tightened security after Sept. 11 has been a windfall
for the nation's 7th-largest airport as gambling revenues & some other
concessions have taken off. McCarran, which has hit a nearly
half-million-dollar jackpot in increased gambling revenues, is unique among
major U.S. airports because it offers slot machines in airport concourses &
gate waiting areas.
- Far Less BA ........
as British Airways is cutting another 5,800 jobs
in the next 2 years as it shakes up its unprofitable operations at London
Gatwick & its wider European network, BA stated in its message titled "Future
Size & Shape Unveiled." BA promised investors 650 million pound of annualized
cost savings; 5,800 further job losses in addition to 7,200 announced
previously -- 23% of the work force; total corp. headquarters & support staff
to be reduced by more than a 33%; and significant restructuring of short haul
business to compete with no frills carriers.
- Not So Fast! ........
as Continental Airlines will delay the delivery
of 28 of 48 jetliners the carrier had expected to receive this year from
Boeing. It will only take 20 aircraft in 2002. The 28 deferred aircraft will
be delivered between late 2003 & mid-2008, along with 39 outstanding orders.
Rival Delta Air Lines said last month that it would delay taking 39 of 52
Boeing jetliners scheduled for delivery this year and next. Other carriers
have also slashed deliveries after ticket sales slumped in the wake of the
Sept. 11 attacks. Boeing, responding to the lower outlook, said last month
that it expected deliveries to fall to 380 this year, down from 527 in 2001.
- But Russia Defies Gravity ........
as while the global post-Sept. 11
slowdown has driven 2 European state air carriers into bankruptcy, new
figures released by the State Civil Aviation Service show that Russia's civil
aviation industry increased its profits by 4.1% to US$271.5M in 2001 & its
revenues by 8.6% to 101.64 billion rubles. The service said it was the 1st
time in a decade that the country's struggling airlines boasted growth across
the sector, prompting an adviser to President Vladimir Putin to remark that
it had finally reached a post-Soviet turning point. Cargo volumes gained 12%
to 612,200 tons. Civil air officials said that fat continued to be trimmed
off the sector in 2001, with the number of carriers -- many of which operate
just 1 or 2 planes -- falling to 267 from 294 the previous year. A total of
536 aircraft were taken out of service, bringing the country's civil air
fleet to 6,014 as Russian carriers acquired few new planes.
- Not Like A Swiss Watch ........
as Swissair Group has sold its
cargo-handling unit Swissport to British investors for US$343M, but no job
losses are expected. The company had 2001 sales of US$710M & employs 13,000
people. A spokesman said British equity group Candover Investments would put
US$162M into the purchase, while a consortium of banks led by the Royal Bank
of Scotland would provide the balance of US$181M. Swissair filed for
bankruptcy protection from creditors in Oct. & the operations are now being
split up & sold off. The company's airline business is being partly taken
over by its former subsidiary, Crossair, under the name "Swiss." Other
Swissair units are still looking for investors.
- The Three Chinas ........
as the Chinese cabinet has endorsed the
Civil Aviation Administration of China's (CAAC) plan to consolidate the
country's commercial aviation sector under 3 main groups. The 3 giant carrier
groups will be headed by China Eastern Airlines, China Southern Airlines &
Air China. The plan represents an attempt by China to bolster its aviation
industry in the face of expected competition now that China is a part of the
WTO. The CAAC is holding meetings with the various airlines affected by the
merger plans to discuss steps for finalizing the groups. The 3 main groups
will represent approximately 80% of domestic air traffic.
- Master of It's Destiny ........
as the United Cargo division of United
Airlines, has announced internal realignment of its Cargo Customer Service
Centers. Formerly, the Customer Service Centers were aligned under United's
North America division, but responsibility now shifts to United's cargo
division, putting United Cargo squarely in charge of its own product
delivery.
www.unitedcargo.com
- Ariana Afghan Airlines Wish List ........
as it wants to buy 10
aircraft to rebuild its war-battered fleet & charter up to 4 freighters to
resume cargo services, key to reconstructing Afghanistan. "We have asked the
government to provide us with 5 wide-body aircraft, 5 narrow-body aircraft &
some small aircraft for bush flying in Afghanistan," the national flag
carrier said. Ariana, down to just 2 planes after years of war & neglect,
flew a B727-200 to Sharjah airport in the UAE on Feb. 11, resuming flights to
the UAE, a major exporter to Afghanistan & home to 100,000 Afghans. The
cash-strapped airline said it would have discussions in the UAE about
chartering 3 or 4 freighters from regional airlines, such as Russian Il-76s,
An-24s or B707s. Ariana had 3 B727s & 5 Antonov 24s before the Oct. launch of
U.S. air strikes to topple the Taliban.
- Visiting The Cookie Jar? ........
as Malaysian Airline System (MAS)
said Feb. 18 it had asked police to investigate allegations of management
irregularities at the loss-making flag carrier. An airline source with
knowledge of the probe told Reuters News Service that MAS lodged a report to
police on Jan. 9 -- said it focused on possible violations of the "Companies
Act" when former chairman Tajudin Ramli was in charge of the carrier. Tajudin
was one of a coterie of ethnic Malay tycoons with close links to former
finance minister Daim Zainuddin, who resigned in the middle of last year. The
report was lodged to police following an audit ordered by new management
after the government bought back control of MAS from Tajudin early last year.
>> The airline has also announced plans to reorganize operations of the MAS
Group which will include the separation of its Int'l & cargo operations from
its domestic operations.
- It's Called "Forwarder-Broker" Services ........
as BAX Global has
launched a new custom distribution service called "DirectShip North America"
that streamlines & lowers overall costs for shipments imported into the U.S.,
Canada & Mexico. DirectShip service consolidates multiple shipments
originating outside the U.S. into one shipment; arranges a direct
consolidation; expedites U.S. customs clearance; breaks down the consolidated
shipment into individual shipments and delivers to multiple destinations
throughout North America using BAX's own integrated, mode neutral
transportation network from start to finish. Good going, but BAX Global is
adding the services your freight forwarder & broker has always provided.
- Is That Where Mel Gibson Worked? ........
as Target Logistics Inc.,
based in Baltimore, said its subsidiary Target Logistic Services Inc. has
acquired the assets & certain liabilities of Air America Freight Service
Inc., a 3rd-party logistics company that provides freight forwarding services
in the Atlanta metro area. Terms not disclosed. Like Target Logistic
Services, Air America Freight Service is non-asset-based. Target Logistics
said this is the 2nd acquisition of a freight forwarder by the company in
fiscal 2002. It recently acquired SDS Logistics, based in Newark, NJ. Target
Logistics expects these acquisitions to add US$5M in revenue & US$500,000 to
net profit on an annual basis.
- Airborne Calls DHL? ........
as Airborne Express has a new deal with
DHL Aviation of Brussels, Belgium & Global Delivery Systems of Jamaica, NY to
provide line-haul carriage for the movement of consolidated Int'l express
shipments to/from Europe, Africa & the Middle East.
Airborne Express uses a number of line-haul carriers in its network.
www.airborne.com/about/pr/PRDetail.asp?nav=AboutAirborne/CompanyInfo/PressReleases&seq=209
- Boeing Reaches ........
as it has begun production of a new version
of the 747 jumbo jet that can fly farther or carry more passengers or cargo
than previous models. The 747-400ER has additional fuel tanks & other
improvements that could give the plane about 500 miles more range. With the
auxiliary fuel tanks, the plane could fly from Los Angeles to Melbourne,
Australia. An airline also could use the expanded capabilities to carry more
passengers or up to 11 more tons of cargo. The 1st 747-400ER is being built
for Qantas, which has ordered 6 planes. Boeing expects to begin deliveries
toward the end of this year.
- Blast-Resistant ULD ........
as FAA has approved the "hardened unit
load device" (HULD) which successfully passed the FAA's rigorous blast test
last year. Supplementary & component testing has now concluded. Telair Int'l
received a Technical Standard Order (TSO-C90) from FAA for the HULD
container, thereby making it ready for industry use. Production for sale to
the world's commercial airlines has already begun at Telair's manufacturing
site in California. The HULD will be primarily used to provide security for
passenger baggage. The new container is fully compatible with standard
aircraft cargo loading systems now in service worldwide. This important
compatibility feature will enable immediate HULD application by purchasing
airlines. Telair Int'l is the nation's 1st air cargo container design &
manufacturing company to successfully pass the FAA's blast resistant
container test. HULD is not a hard paneled container, but uses a patented
configuration of KEVLAR fiber materials.
- Haz. Mat. Reg. Reminder ........
as the FAA has proposed to assess
civil penalties against 5 companies totaling US$562,000 for allegedly
violating Dept. of Transportation hazardous materials regulations. Alleged
violations & proposed fines are:
-
Cummins Eastern Canada, Dartmouth, Canada, for improperly offering
fiberboard box containing a fuel pump filled with diesel fuel to UPS for air
transport, US$51,000.
-
Wiginton Fire Sprinklers, of Longwood, Fla., for improperly offering
fiberboard box containing one one-gallon can of flammable lacquer paint to
FedEx for air transport, US$70,000.
-
Ecolab Inc., of Huntington, Ind., for improperly offering fiberboard box
containing a container of flammable liquid to UPS for air transport,
US$63,000.
-
Aerobal SA, Toluca, Mexico, improperly offering fiberboard box containing
plastic containers of ethanol solution, a flammable liquid, to
UPS for air transport, US$95,000.
-
Merial Select of Gainesville, Ga., improperly offering fireboard box
containing "70% isopropyl alcohol," a flammable liquid, to FedEx for air
transport, US$165,000.
-
Cummins Engine Co., Columbus, Ind., improperly offering fiberboard boxes
containing machinery coated with diesel fuel, a flammable liquid, to UPS for
air transport, US$118,000.
FAA alleged that the companies had offered hazardous materials for
transportation when they were not packaged, labeled, marked, classed,
described, documented or in condition for shipment required by regs --
companies failed to ensure that employees were trained to properly package &
handle hazardous materials. The companies have 30 days from receipt of the
FAA notice to submit a reply.
- Sample Performances ........
as BAA, Britain's largest airport
operator reports that Jan. cargo tonnage handled at its UK airports fell by
7.8%, the 13th consecutive monthly decline, but showed "a reduction in the
rate of decline seen over the last few months." >> For Airbone Express total
volume was down 2.4% to 82.8 million shipments for the quarter & remained
flat for the year at 329.2 million. >> For KLM, Jan. cargo traffic decreased
4% year-on-year - a relative improvement compared with Dec., when traffic was
5% lower. The decrease in traffic was mainly caused by less traffic on North
Atlantic routes. After a weak performance in the 1st 2 weeks of Jan, traffic
recovered in the 2nd half of the month, especially on Asian routes. As cargo
capacity was 2% lower, load factor decreased by 1.5% to 66.6%.
- Second "Lone Eagle" ........
as to commemorate what would have been
Charles Lindbergh's 100th birthday this month, Erik Lindbergh will recreate
his grandfather's historic Spirit of St. Louis flights including his
non-stop, solo flight across the Atlantic. The New Spirit Flights, scheduled
for spring 2002, are a project of the "X PRIZE Foundation," St. Louis, MO.
Beginning April 14, Erik Lindbergh will depart San Diego's Lindbergh Field &
follow the "Lone Eagle's" 1927 flight plan from San Diego to St. Louis to New
York. During the 1st 2 weeks of May, 75 years after his grandfather took off
from Roosevelt Field, NY, Erik will lift off, flying non-stop across the
Atlantic to Le Bourget Airport, outside Paris. He will fly solo, in a
single-engine, composite Lancair Columbia 300.
www.xprize.org/~xprize/lindbergh/default.htm
- LHR Kicks Off 2002 Shopping Season ........
as thieves made off with
26,000 Samsung A300 phones with a retail value of US$6M after raiding a
warehouse in Hayes, west London, on Feb. 10 -- one of 2 major heists near the
airport within 24 hours. Robbers escaped with US$6.5M in foreign currency
after raiding a security van at the airport on Feb. 11 morning. Over 33% of
the 26,000 mobile phones were found following arrest of 5 men late on Feb.
11. Samsung was offering US$280,000 for information leading to the arrest &
conviction of suspects or to the recovery of the phones. Pity the forwarder.
Please click below for other sections:
Section A: Section: Trade, Financial & Inland News|
Section B: FF World Air News |
Section C: FF World Ocean News | Section D: FF in Cyberspace |
Section E: The Forwarder Broker World
The Cargo Letter Correspondents:
Michael S. McDaniel, Esq., Editor
(Countryman & McDaniel).
Cameron W. Roberts, Esq. (Countryman & McDaniel).
Written from wire stories, the Associated Press,
Reuters, Hong Kong Shipping News Lloyds & other world sources.
[an error occurred while processing this directive]