United

ALC calls for urgent action on 23 key logistics blocks

Magazine Stories January Issue 2009
Thursday, 28 January 2016
THE AUSTRALIAN Logistics Council (ALC) has identified 23 key supply chain blockages impacting on Australia's global competitiveness and listed them in its submission to Infrastructure Australia with a call for urgent action to fix them.
ALC chief executive Hal Morris said: “Now is the time for urgent action. The 23 supply chain blockages must be used as criteria for investment decisions by all levels of government, including Infrastructure Australia’s recommendations for the Building Australia Fund.

“Our transport networks cater for our growing freight task and are critical to our global performance.  Efficient transport of freight around Australia, and to its export markets, underpins our economy.”

In particular, he said:

• Investment decisions should be considered from a full supply chain perspective so the best solution across modes is implemented.

• Improvements in urban congestion, including better public transport networks and provision of freight corridors, are critical to the smooth delivery of freight.

• Regulatory reforms need to encourage the most efficient transportation of freight and people, whilst maintaining safety as a central priority.

• Long term plans must be developed and implemented.

The recommendations fall within the four priority action areas identified by industry: Preparing the rail system for future challenges, corridor access to ports, airports and intermodal terminals, clearly articulated freight transport plans and regulatory consistency.

“These recommendations cover infrastructure, planning and regulation and require urgent action," said Morris. “Our supply chains are the arteries of our nation and these blockages threaten its health.  The time has come for the 23 supply chain blockages to be excised from our transport system."

The key problems identified are: Resources Rail Network;  North-South Rail Network; East–West Rail Network; Grain Networks; Shipping Channels; Identify IMT Sites; Protect Access Corridors; Concessional Limits; Short Haul Rail; Transport Plan; Develop Comprehensive Strategies; B-Double & B-Triple Networks; Fast Track Planning; Rest Areas; Climate Change; Coastal Shipping; Open Access Regimes; Streamline PPP Approvals; Uniform Rail Standards; Road Pricing;  High Productivity Vehicles;  Over-dimension Vehicles and Harmonise Fatigue Management.

More details on each recommendation is on the ALC website.

Aust/NZ e-freight roll-out was smooth, but success needs market penetration

Magazine Stories January Issue 2009
Thursday, 28 January 2016

THE MILD criticisms and more-frankly expressed disappointments that Australia and New Zealand were not chosen to help roll out the initial phases of IATA’s e-freight initiative are now firmly in the past. 

The trade has, rightly, given a collective thumbs up to the scheme’s application in Australasia, only a short time behind the international pioneers. And the message is clearly that it is time to make this era of electronic efficiency a success story that benefits all stakeholders.  Market acceptance is now the priority.

Industry groups on both sides of the Tasman have praised the launch of IATA e-freight, while IATA in turn said thanks for their energy and drive in ensuring the roll-out was as smooth as possible.

“AFIF is totally supportive of the e-freight initiative and has been instrumental in supporting the trial to its current position,” said Brian Lovell, AFIF’s chief executive.  “The next challenge will be to get penetration in the Australian market.

“This will only be achieved by demonstrating the commercial benefits to the forwarding industry through reduced costs in dealing with airlines and clients in international trading sectors.”

Looking at the regional picture, CBFCA’s manager freight and business operations Paul Zalai noted that “an immediate opportunity lies in the trans-Tasman trade sector to take e-freight into a commercially viable environment. 

“Combining this initiative with the co-operation between New Zealand and Australian Customs authorities provides a genuine opportunity for industry to re-engineer import/export processes and gain operational efficiencies.”
Willie van Heusden, president of New Zealand’s CBAFF, said the development will speed up processes and cut costs for those in the freight and import/export sectors, along with their customers.

“This is the beginning of a paper-free era and certainly a step in the right direction,” he pointed out.  “As airlines note record losses and drops on air cargo volume, this will help improve efficiency in dealing with the airlines’ customers.
“Perhaps this is the first step toward reducing the thousands of inbound and outbound paper documents.  If airlines accepted plain paper airline bills, manifests and security declarations electronically, that would quickly remove even more paper documents.”

Aleks Popovich, IATA’s global head of cargo, described the Australasian implementation of e-freight as “another significant step in the global roll-out of the program.

The industry groups had played a “key role” in getting e-freight off the ground in the region, he said.

New Zealand’s e-freight went live in mid-October on two trade lanes: New Zealand-Singapore and New Zealand-Hong Kong.  Its implementation was led by New Zealand Customs and supported by Singapore Airlines, Cathay Pacific, DHL, Mainfreight International and MAF Biosecurity.

A week later, Australian e-freight became operational on three trade lanes: Australia-Singapore, Australia-New Zealand and Australia-Netherlands.  Qantas led the implementation, with heavy participation by Singapore Airlines, Cathay Pacific, British Airways, DHL, Schenker, Fracht Australia, Australian Customs and AQIS.

IATA e-freight is one of that organisation’s five ‘Simplifying the Business’ initiatives, aimed at improving service and cutting costs.

Its initial application last year was in Canada, Sweden, the UK, Hong Kong, Singapore and Netherlands, followed by several other countries this year.

IATA’s goal, supported by industry bodies and operators around the world, is to have international implementation of e-freight “wherever feasible”.

“The industry is in crisis,” said Giovanni Bisignani, IATA’s director general and chief executive in June, when announcing further e-freight locations.  “Record fuel prices and sagging demand growth will drive an industry loss of US$2.3 billion during 2008.

“We need to simplify and modernise our business.  100 per cent e-ticketing was an important step forward.  It will deliver much-needed efficiency and US$1.2 billion in cost savings while responding to shippers’ demands for improved reliability and more speed.”

Bedek wins contract to convert 14 ABX aircraft to BDSF configuration

Magazine Stories January Issue 2009
Thursday, 28 January 2016
ISRAEL Aerospace Industries’ (IAI’s) Bedek Aviation Group has won a new contract for B762 freighter conversions.  Awarded by Air Transport Services Group through its Cargo Aircraft Management subsidiary, the deal was signed during the recent Cargo Facts Conference in Florida, USA.

It will cover up to 14 conversions, with the prototype aircraft already in the system and due for certification in June next year.  All the aircraft are from ABX Air, an affiliate company of Cargo Aircraft Management, and the conversions will be to Bedek Special Freighter configuration (BDSF).

All going to plan, the first series aircraft should move onto the line in March.  It is intended that two parallel production lines will operate for the duration of the contract.

Two new hangars have been commissioned by Bedek at Ben Gurion Airport, Israel, to accommodate the burgeoning expansion of freighter conversion projects being undertaken there.  Ben Gurion has evolved as one of the key freighter conversion venues in the world, working on aircraft for clients in many countries.

The hangars were designed primarily with B744 conversions in mind but are structured to allow one wide-bodied and two smaller aircraft to be worked on simultaneously.

IAI developed the additional facility under advanced environmental standards.  Features include an underground service tunnel and equipment to supply compressed air, electricity, air conditioning, water and other services.

Warehouses, workshops, control rooms and offices for specialist support teams are located close by.

“Bedek’s new infrastructure is an important milestone for the technological and business development of IAI,” said Itzhak Nissan, the company’s president and chief executive, at the hangars’ opening. 

“We aspire to gain a balance in the volume of commercial and military activities and the addition of modern infrastructure to Bedek will help reach this goal.”

Dany Kleiman, Bedek’s general manager and also IAI corporate vice president, said that the new hangars will “allow us to respond better and faster to our customers’ demands.  Bedek is a leader in aircraft conversions and has accumulated vast know-how and experience.”

Bedek/IAI was a key player recently at an international conference in Beijing covering freighter conversions and the current turmoil in the aviation industry.  This drew top executives from operators, leasing and finance companies, engineering and other stakeholders.

One topic of interest was the possibility of freighter conversions for the Chinese market.

“The field of aircraft conversions has strong roots in IAI’s core business and is one of the growth areas of our company,” said Kleiman.  “In spite of the turmoil in the industry as a result of the significant increase in the cost of oil, I anticipate a positive trend in the freighter market.

“This conference’s goal was to discuss all variables involved and to have an outlook on our industry.”

Chinese SME forwarders to concentrate efforts on developing market countries

Magazine Stories January Issue 2009
Thursday, 28 January 2016

CHINA’s SME freight forwarders are re-focusing their marketing efforts on developing business in the emerging markets of Africa, Central Asia and Central Europe.

That’s the view of Henrik Christensen, chairman and chief executive officer of the China Logistics Club and co-organiser of the sixth International Freight Forwarders and Logistics Co-operation Forum in Ningbo in China November 5-7.

Trade between Africa and Chin exceeded US$75 billion last year - having grown by 43 per cent a year on a compound basis for the past five years.

“With falling freight rates and yield on the traditional Asia-Europe and transpacific routes, many of our members are now shifting their focus to higher yielding markets, particularly Africa,” said Christensen.

“China has made significant investments in infrastructure projects and the manufacturing sector in Africa. The growth in that trade has been dramatic during the last two years. The same can be said of Central Asia, where the new oil and gas industry has led to rapid growth in the regional economies and a corresponding increase in trade with China,” he added.

Speakers at the Ningbo forum will come from companies based in the merging markets of Hungary, Africa, Russia and Kazakhstan.

The China Logistics Club has doubled its membership in the past year as its members look to increase their international networks, contacts and understanding of opportunities in overseas markets.
For more details on the forum email: This email address is being protected from spambots. You need JavaScript enabled to view it.

End of an era as Martinair recognises growth in ocean competition and pulls out of Australia

Magazine Stories January Issue 2009
Thursday, 28 January 2016
IT’s the end of an era for a Dutch carrier — and the man who set up its Australian air cargo operations 21 years ago. And it’s also the last direct EU-registered freighter operation linking Europe and Sydney.

Martinair Holland will cease operations in Australia on December 22 this year, while Grenville Stevens, its Sydney-based director of cargo in the South Pacific, is looking for a new job in the air freight industry.

In a letter to its customers and business partners, the carrier’s vice president Asia-Pacific, Harm Winkeler, said different developments had led to the decision. “First — and the most important — is that Martinair decided to develop its growing Latin American and African markets. Secondly, the unprecedented increase in the fuel price has put pressure on the economic viability of our Sydney operation. And furthermore, we recognise the increasing trend towards sea freight for cargo concept for cargo from Europe to Australia.”

After a career in the Merchant Navy where he attained the rank of captain and then a stint in the land-based operations of Nedlloyd Lines in South Africa, Stevens became general manager of Martinair in 1987, when the carrier commenced a weekly DC-10 freighter charter service (AMS/AUH/SIN/SYD/TPE). The following year, it extended this charter service from Sydney via Darwin to load rock melons bound for Hong Kong, and later that year was granted approval to fly SYD/NCP (Subic Bay), uplifting the weekly supply of fresh fruit and vegetables and dairy products for the American base at Subic Bay and on to Hong Kong.

In 1991, Martinair introduced its first brand new full freighter - a B747-200. Three years later, the airline moved away from its Nedlloyd Lines agency arrangement and became a foreign-registered company in Australia. In 1992, the carrier was granted full schedule traffic rights under the Netherlands/Australia air service agreement.
Currently, Martinair operates two weekly 747-400BCF freighters between Amsterdam and Sydney via Bangkok.
“We load up in Amsterdam and top up with 20 tonnes of cargo ex China in Bangkok for the flight to Sydney,” said Stevens.

He pointed out that the airline had built up many strong relationships during the past 21 years, particularly in the horse racing industry in which Martinair specialised. “We’ve carried a large number of top quality racing stock, with excellent support from the two major horse transport companies — International Racehorse Transport and Crispin Bennett International Racehorse Transport,” he said.

Stevens said the carrier’s decision to pull out of Sydney was disappointing — but necessary in the economic climate.
The Martinair Sydney office will remain functional until next February to finalise administration procedures.
In the meantime, Stevens says he’d like to remain in the industry, either with an airline or in freight forwarding.

Flower exports back to normal

Magazine Stories January Issue 2009
Thursday, 28 January 2016
PETALS were in a flurry in New Zealand when the United States Department of Agriculture suspended all US imports of New Zealand flowers, following the discovery of light brown apple moth eggs on a shipment of forsythia and other outdoor flowers which originated on the South Island.

The crisis was later largely overcome, following an exhaustive series of covered site inspections by Biosecurity New Zealand.  However, a question mark hung over some outdoor sites, where risk management programs were being designed.

It was a big worry for growers, both in its sudden application and the timing - springtime blossoming was well underway, with orchids and peonies particularly vulnerable.

The US market accounts for between a quarter and a third of all New Zealand flower exports, depending on demand and also on uptake levels via the vitally important Netherlands flower auction system.

Almost all New Zealand flower exports are by air.

Despite the individual grower concerns, industry bodies - of which there are a surprising number - took a calming approach.  Ed Scott of the New Zealand Flower Exporters Association, for instance, acknowledged that the Americans had a right to be worried about the apple moth, which is a danger to US horticultural crops and the subject of an expensive eradication program.

And Beth Linklater, president of the Otago Commercial Flower Growers Association, said it would encourage some growers to “smarten up their act”.

While forsythia is a minor crop for New Zealand’s flower export industry, other outdoor flowers - including peonies - are at risk of attracting the attention of the apple moth.  Many flower-growing properties are close to orchards, which can heighten the problem.

The crisis caused some uncertainty on the domestic market, although relatively small quantities of export stock were released locally and prices remained relatively stable.

On the positive side, it drew consumer attention to the flower export industry and to the role played by air cargo and freight forwarders in its international success.

Industrial Conveying sees growing demand for crane-based high-bay stacking system

Magazine Stories January Issue 2009
Thursday, 28 January 2016
WITH floor space at a premium and Australia’s energy prices  - particularly electricity - forecast to increase for the foreseeable future, materials handling company Industrial Conveying now is promoting a crane-based high bay stacker system for warehouses.

Managing director Don Erskine says the system doesn’t signal the death knell for forklifts, but it provides an alternative that maximises access to and utilisation of floor-to-ceiling cubic air space.

“Companies always require accuracy of selection during the materials handling process but find it hard to reduce damage to product while maintaining multiple choice of picking — a ‘first-in first-out’ system or by selection,” Erskine added.

“We saw operators needed to increase efficiency in space utilisation, so we developed our high bay stacker system to achieve these aims.

“Our solution is essentially a sortation system that efficiently can put as little as a single product into store, but for distribution can choose multiple products and dispatch.

“It allows fast and accurate use of very high spaces within a warehouse - as efficiently as if it was down at floor level.”

The solution fits into a distribution chain and logistics set up much better than a forklift system, he said.

It combines with automatic truck loading systems for a pre-assembly of loads waiting for the next truck to arrive, which can make a positive difference to operating costs.

Loading becomes much quicker, especially in the current economic environment where power costs are rising and fuel costs fluctuate.

With this system, an operator can ‘cube’ the load to get optimum usage in the truck space.  It also provides the ability to be able to load B-Double trucks automatically.

Using a system of aisle-specific stacker cranes run by radio frequency (RF) technology to place or retrieve pallets at almost any height - its optimum work environment is in the handling of consistent pallets and multiple loads.

An ASRS (automated stacking retrieval system), in conjunction with high bay warehousing, eliminates the cost of running a forklift fleet for such applications and increases the occupational health and safety levels in warehouses by almost eliminating human interaction with this moving equipment.

Stacker crane technology can reach much higher than forklifts and operate across a wide temperature and environment band to facilitate all types of industries, conditions and atmospheric variations.

“Warehouses running on stacker cranes aren’t signalling the death knell for forklifts, but they do have a much better suitability in premises handling constant types of pallets and loads,” said Erskine.

“Stacker crane technology is configured to be extremely cost-effective regardless of how high or how low an altitude it is handling - the technology is scalable and cost efficient regardless.

“ASRS suits general transport logistics services, the food and beverage processing industry, snack foods warehousing, general industrial warehouses and retail warehousing operations.”

Industry employers missing the boat when it comes to attracting the best

Magazine Stories January Issue 2009
Thursday, 28 January 2016
RESEARCH has shown that many supply chain and procurement hiring managers are currently using recruitment practices that fail to engage supply chain and procurement professionals.

A Sydney-based company’s survey of 132 supply chain and procurement hiring managers nationally has revealed that many employers simply don’t have their finger on the pulse when it comes to knowing what motivates job seekers. As a result, they are missing out on attracting the best people in the market.

The research by Hudson — a major provider of permanent recruitment and contract professionals — showed that just one in four (26 per cent) of employers include salary information in their job advertisements, while only 37 per cent include information on career development opportunities and 38 per cent cover the provision of training in their advertisements. 

When compared with the findings of a recent Hudson 20:20 Series report — Candidate Buying Behaviour, the disconnect between the information employers provide candidates in job advertisements and the information candidates want to see, becomes evident.

“By providing information candidates want, companies stand a better chance of attracting a higher calibre candidate and a more targeted response, thus delivering a better ROI on their advertising,” said Michael Digby, practice manager, Hudson supply chain and procurement.

“In some cases, employers argue that recent increases in supply chain and procurement salaries make it difficult to advertise the salary for new roles, because if they do make salaries public they face a backlash from current staff members.

“There is also the question of competition, with employers reluctant to share their remuneration levels with the market,” said Digby.

“This is a challenge employers need to overcome, because candidates are telling us salary is a major motivator in the early stages of the job seeking process”.

New Skymat is kind to airlines, animals and the environment

Magazine Stories January Issue 2009
Thursday, 28 January 2016
A SUPER-absorbent crate mat designed to make animal waste safer in cargo holds was used for the first time earlier this month on services between Australia and China.

 Known as the Skymat, it was invented by Andrew Niemeyer, managing director of Charterair and the Sydney-based chairman of LiveAir, to combat the effects of hydroxides, particularly ammonium hydroxide on structural airframes. Niemeyer explained: "Aircraft airframes are built from aluminium and are corrosion-resistant because of a skin of aluminium oxide which forms on their surface and protects the metal.

 “Various alkali hydroxides, particularly ammonium hydroxide, can dissolve this protective aluminium oxide coating, allowing continuing oxidisation of the aluminium metal and hence serious corrosion of the airframe."

 When transporting animals in aircraft, their waste can react to form gaseous ammonia which combines with moisture to form liquid ammonium hydroxide.

 "If this seeps into the joints of the airframe it can cause serious corrosion of the structure," warned Niemeyer.

 The Skymat works because it carries a mixture of natural alumino-silicate minerals that have a high affinity for ammonia and absorb NH3+ ammonia ion from gas or liquid.

 The fine-sand-like material instantly absorbs any ammonia as it is generated, thus preventing the formation of ammonium hydroxide liquid, and other ingredients absorb all moisture from urine and faeces.

 Animals also travel in more humane conditions and arrive at the destination in better condition.

 From the animals perspective, the mat has a ‘pasture like’ texture and is not hard on hooves.

 The first shipment to benefit from Skymats was a Melbourne uplift of some 400 diary hiefers, part of an order of Friesian breeding cattle bound for Tianjin, China. Subsequent flights followed from Perth and Sydney.

 Niemeyer attended the loading of cattle in Sydney, Melbourne and Perth to monitor the process.

 He has since received reports from the consignee and the handlers that the mats performed above expectations.

 "They were very pleased with the condition of the cattle on arrival and said the quality of air in the aircraft was significantly improved due to the containment of the waste and ammonia in the crate," said Niemeyer.
HACTL
Cathay Cargo
United

ALC calls for urgent action on 23 key logistics blocks

Magazine Stories January Issue 2009
Thursday, 28 January 2016
THE AUSTRALIAN Logistics Council (ALC) has identified 23 key supply chain blockages impacting on Australia's global competitiveness and listed them in its submission to Infrastructure Australia with a call for urgent action to fix them.
ALC chief executive Hal Morris said: “Now is the time for urgent action. The 23 supply chain blockages must be used as criteria for investment decisions by all levels of government, including Infrastructure Australia’s recommendations for the Building Australia Fund.

“Our transport networks cater for our growing freight task and are critical to our global performance.  Efficient transport of freight around Australia, and to its export markets, underpins our economy.”

In particular, he said:

• Investment decisions should be considered from a full supply chain perspective so the best solution across modes is implemented.

• Improvements in urban congestion, including better public transport networks and provision of freight corridors, are critical to the smooth delivery of freight.

• Regulatory reforms need to encourage the most efficient transportation of freight and people, whilst maintaining safety as a central priority.

• Long term plans must be developed and implemented.

The recommendations fall within the four priority action areas identified by industry: Preparing the rail system for future challenges, corridor access to ports, airports and intermodal terminals, clearly articulated freight transport plans and regulatory consistency.

“These recommendations cover infrastructure, planning and regulation and require urgent action," said Morris. “Our supply chains are the arteries of our nation and these blockages threaten its health.  The time has come for the 23 supply chain blockages to be excised from our transport system."

The key problems identified are: Resources Rail Network;  North-South Rail Network; East–West Rail Network; Grain Networks; Shipping Channels; Identify IMT Sites; Protect Access Corridors; Concessional Limits; Short Haul Rail; Transport Plan; Develop Comprehensive Strategies; B-Double & B-Triple Networks; Fast Track Planning; Rest Areas; Climate Change; Coastal Shipping; Open Access Regimes; Streamline PPP Approvals; Uniform Rail Standards; Road Pricing;  High Productivity Vehicles;  Over-dimension Vehicles and Harmonise Fatigue Management.

More details on each recommendation is on the ALC website.

Aust/NZ e-freight roll-out was smooth, but success needs market penetration

Magazine Stories January Issue 2009
Thursday, 28 January 2016

THE MILD criticisms and more-frankly expressed disappointments that Australia and New Zealand were not chosen to help roll out the initial phases of IATA’s e-freight initiative are now firmly in the past. 

The trade has, rightly, given a collective thumbs up to the scheme’s application in Australasia, only a short time behind the international pioneers. And the message is clearly that it is time to make this era of electronic efficiency a success story that benefits all stakeholders.  Market acceptance is now the priority.

Industry groups on both sides of the Tasman have praised the launch of IATA e-freight, while IATA in turn said thanks for their energy and drive in ensuring the roll-out was as smooth as possible.

“AFIF is totally supportive of the e-freight initiative and has been instrumental in supporting the trial to its current position,” said Brian Lovell, AFIF’s chief executive.  “The next challenge will be to get penetration in the Australian market.

“This will only be achieved by demonstrating the commercial benefits to the forwarding industry through reduced costs in dealing with airlines and clients in international trading sectors.”

Looking at the regional picture, CBFCA’s manager freight and business operations Paul Zalai noted that “an immediate opportunity lies in the trans-Tasman trade sector to take e-freight into a commercially viable environment. 

“Combining this initiative with the co-operation between New Zealand and Australian Customs authorities provides a genuine opportunity for industry to re-engineer import/export processes and gain operational efficiencies.”
Willie van Heusden, president of New Zealand’s CBAFF, said the development will speed up processes and cut costs for those in the freight and import/export sectors, along with their customers.

“This is the beginning of a paper-free era and certainly a step in the right direction,” he pointed out.  “As airlines note record losses and drops on air cargo volume, this will help improve efficiency in dealing with the airlines’ customers.
“Perhaps this is the first step toward reducing the thousands of inbound and outbound paper documents.  If airlines accepted plain paper airline bills, manifests and security declarations electronically, that would quickly remove even more paper documents.”

Aleks Popovich, IATA’s global head of cargo, described the Australasian implementation of e-freight as “another significant step in the global roll-out of the program.

The industry groups had played a “key role” in getting e-freight off the ground in the region, he said.

New Zealand’s e-freight went live in mid-October on two trade lanes: New Zealand-Singapore and New Zealand-Hong Kong.  Its implementation was led by New Zealand Customs and supported by Singapore Airlines, Cathay Pacific, DHL, Mainfreight International and MAF Biosecurity.

A week later, Australian e-freight became operational on three trade lanes: Australia-Singapore, Australia-New Zealand and Australia-Netherlands.  Qantas led the implementation, with heavy participation by Singapore Airlines, Cathay Pacific, British Airways, DHL, Schenker, Fracht Australia, Australian Customs and AQIS.

IATA e-freight is one of that organisation’s five ‘Simplifying the Business’ initiatives, aimed at improving service and cutting costs.

Its initial application last year was in Canada, Sweden, the UK, Hong Kong, Singapore and Netherlands, followed by several other countries this year.

IATA’s goal, supported by industry bodies and operators around the world, is to have international implementation of e-freight “wherever feasible”.

“The industry is in crisis,” said Giovanni Bisignani, IATA’s director general and chief executive in June, when announcing further e-freight locations.  “Record fuel prices and sagging demand growth will drive an industry loss of US$2.3 billion during 2008.

“We need to simplify and modernise our business.  100 per cent e-ticketing was an important step forward.  It will deliver much-needed efficiency and US$1.2 billion in cost savings while responding to shippers’ demands for improved reliability and more speed.”

Bedek wins contract to convert 14 ABX aircraft to BDSF configuration

Magazine Stories January Issue 2009
Thursday, 28 January 2016
ISRAEL Aerospace Industries’ (IAI’s) Bedek Aviation Group has won a new contract for B762 freighter conversions.  Awarded by Air Transport Services Group through its Cargo Aircraft Management subsidiary, the deal was signed during the recent Cargo Facts Conference in Florida, USA.

It will cover up to 14 conversions, with the prototype aircraft already in the system and due for certification in June next year.  All the aircraft are from ABX Air, an affiliate company of Cargo Aircraft Management, and the conversions will be to Bedek Special Freighter configuration (BDSF).

All going to plan, the first series aircraft should move onto the line in March.  It is intended that two parallel production lines will operate for the duration of the contract.

Two new hangars have been commissioned by Bedek at Ben Gurion Airport, Israel, to accommodate the burgeoning expansion of freighter conversion projects being undertaken there.  Ben Gurion has evolved as one of the key freighter conversion venues in the world, working on aircraft for clients in many countries.

The hangars were designed primarily with B744 conversions in mind but are structured to allow one wide-bodied and two smaller aircraft to be worked on simultaneously.

IAI developed the additional facility under advanced environmental standards.  Features include an underground service tunnel and equipment to supply compressed air, electricity, air conditioning, water and other services.

Warehouses, workshops, control rooms and offices for specialist support teams are located close by.

“Bedek’s new infrastructure is an important milestone for the technological and business development of IAI,” said Itzhak Nissan, the company’s president and chief executive, at the hangars’ opening. 

“We aspire to gain a balance in the volume of commercial and military activities and the addition of modern infrastructure to Bedek will help reach this goal.”

Dany Kleiman, Bedek’s general manager and also IAI corporate vice president, said that the new hangars will “allow us to respond better and faster to our customers’ demands.  Bedek is a leader in aircraft conversions and has accumulated vast know-how and experience.”

Bedek/IAI was a key player recently at an international conference in Beijing covering freighter conversions and the current turmoil in the aviation industry.  This drew top executives from operators, leasing and finance companies, engineering and other stakeholders.

One topic of interest was the possibility of freighter conversions for the Chinese market.

“The field of aircraft conversions has strong roots in IAI’s core business and is one of the growth areas of our company,” said Kleiman.  “In spite of the turmoil in the industry as a result of the significant increase in the cost of oil, I anticipate a positive trend in the freighter market.

“This conference’s goal was to discuss all variables involved and to have an outlook on our industry.”

Chinese SME forwarders to concentrate efforts on developing market countries

Magazine Stories January Issue 2009
Thursday, 28 January 2016

CHINA’s SME freight forwarders are re-focusing their marketing efforts on developing business in the emerging markets of Africa, Central Asia and Central Europe.

That’s the view of Henrik Christensen, chairman and chief executive officer of the China Logistics Club and co-organiser of the sixth International Freight Forwarders and Logistics Co-operation Forum in Ningbo in China November 5-7.

Trade between Africa and Chin exceeded US$75 billion last year - having grown by 43 per cent a year on a compound basis for the past five years.

“With falling freight rates and yield on the traditional Asia-Europe and transpacific routes, many of our members are now shifting their focus to higher yielding markets, particularly Africa,” said Christensen.

“China has made significant investments in infrastructure projects and the manufacturing sector in Africa. The growth in that trade has been dramatic during the last two years. The same can be said of Central Asia, where the new oil and gas industry has led to rapid growth in the regional economies and a corresponding increase in trade with China,” he added.

Speakers at the Ningbo forum will come from companies based in the merging markets of Hungary, Africa, Russia and Kazakhstan.

The China Logistics Club has doubled its membership in the past year as its members look to increase their international networks, contacts and understanding of opportunities in overseas markets.
For more details on the forum email: This email address is being protected from spambots. You need JavaScript enabled to view it.

End of an era as Martinair recognises growth in ocean competition and pulls out of Australia

Magazine Stories January Issue 2009
Thursday, 28 January 2016
IT’s the end of an era for a Dutch carrier — and the man who set up its Australian air cargo operations 21 years ago. And it’s also the last direct EU-registered freighter operation linking Europe and Sydney.

Martinair Holland will cease operations in Australia on December 22 this year, while Grenville Stevens, its Sydney-based director of cargo in the South Pacific, is looking for a new job in the air freight industry.

In a letter to its customers and business partners, the carrier’s vice president Asia-Pacific, Harm Winkeler, said different developments had led to the decision. “First — and the most important — is that Martinair decided to develop its growing Latin American and African markets. Secondly, the unprecedented increase in the fuel price has put pressure on the economic viability of our Sydney operation. And furthermore, we recognise the increasing trend towards sea freight for cargo concept for cargo from Europe to Australia.”

After a career in the Merchant Navy where he attained the rank of captain and then a stint in the land-based operations of Nedlloyd Lines in South Africa, Stevens became general manager of Martinair in 1987, when the carrier commenced a weekly DC-10 freighter charter service (AMS/AUH/SIN/SYD/TPE). The following year, it extended this charter service from Sydney via Darwin to load rock melons bound for Hong Kong, and later that year was granted approval to fly SYD/NCP (Subic Bay), uplifting the weekly supply of fresh fruit and vegetables and dairy products for the American base at Subic Bay and on to Hong Kong.

In 1991, Martinair introduced its first brand new full freighter - a B747-200. Three years later, the airline moved away from its Nedlloyd Lines agency arrangement and became a foreign-registered company in Australia. In 1992, the carrier was granted full schedule traffic rights under the Netherlands/Australia air service agreement.
Currently, Martinair operates two weekly 747-400BCF freighters between Amsterdam and Sydney via Bangkok.
“We load up in Amsterdam and top up with 20 tonnes of cargo ex China in Bangkok for the flight to Sydney,” said Stevens.

He pointed out that the airline had built up many strong relationships during the past 21 years, particularly in the horse racing industry in which Martinair specialised. “We’ve carried a large number of top quality racing stock, with excellent support from the two major horse transport companies — International Racehorse Transport and Crispin Bennett International Racehorse Transport,” he said.

Stevens said the carrier’s decision to pull out of Sydney was disappointing — but necessary in the economic climate.
The Martinair Sydney office will remain functional until next February to finalise administration procedures.
In the meantime, Stevens says he’d like to remain in the industry, either with an airline or in freight forwarding.

Flower exports back to normal

Magazine Stories January Issue 2009
Thursday, 28 January 2016
PETALS were in a flurry in New Zealand when the United States Department of Agriculture suspended all US imports of New Zealand flowers, following the discovery of light brown apple moth eggs on a shipment of forsythia and other outdoor flowers which originated on the South Island.

The crisis was later largely overcome, following an exhaustive series of covered site inspections by Biosecurity New Zealand.  However, a question mark hung over some outdoor sites, where risk management programs were being designed.

It was a big worry for growers, both in its sudden application and the timing - springtime blossoming was well underway, with orchids and peonies particularly vulnerable.

The US market accounts for between a quarter and a third of all New Zealand flower exports, depending on demand and also on uptake levels via the vitally important Netherlands flower auction system.

Almost all New Zealand flower exports are by air.

Despite the individual grower concerns, industry bodies - of which there are a surprising number - took a calming approach.  Ed Scott of the New Zealand Flower Exporters Association, for instance, acknowledged that the Americans had a right to be worried about the apple moth, which is a danger to US horticultural crops and the subject of an expensive eradication program.

And Beth Linklater, president of the Otago Commercial Flower Growers Association, said it would encourage some growers to “smarten up their act”.

While forsythia is a minor crop for New Zealand’s flower export industry, other outdoor flowers - including peonies - are at risk of attracting the attention of the apple moth.  Many flower-growing properties are close to orchards, which can heighten the problem.

The crisis caused some uncertainty on the domestic market, although relatively small quantities of export stock were released locally and prices remained relatively stable.

On the positive side, it drew consumer attention to the flower export industry and to the role played by air cargo and freight forwarders in its international success.

Industrial Conveying sees growing demand for crane-based high-bay stacking system

Magazine Stories January Issue 2009
Thursday, 28 January 2016
WITH floor space at a premium and Australia’s energy prices  - particularly electricity - forecast to increase for the foreseeable future, materials handling company Industrial Conveying now is promoting a crane-based high bay stacker system for warehouses.

Managing director Don Erskine says the system doesn’t signal the death knell for forklifts, but it provides an alternative that maximises access to and utilisation of floor-to-ceiling cubic air space.

“Companies always require accuracy of selection during the materials handling process but find it hard to reduce damage to product while maintaining multiple choice of picking — a ‘first-in first-out’ system or by selection,” Erskine added.

“We saw operators needed to increase efficiency in space utilisation, so we developed our high bay stacker system to achieve these aims.

“Our solution is essentially a sortation system that efficiently can put as little as a single product into store, but for distribution can choose multiple products and dispatch.

“It allows fast and accurate use of very high spaces within a warehouse - as efficiently as if it was down at floor level.”

The solution fits into a distribution chain and logistics set up much better than a forklift system, he said.

It combines with automatic truck loading systems for a pre-assembly of loads waiting for the next truck to arrive, which can make a positive difference to operating costs.

Loading becomes much quicker, especially in the current economic environment where power costs are rising and fuel costs fluctuate.

With this system, an operator can ‘cube’ the load to get optimum usage in the truck space.  It also provides the ability to be able to load B-Double trucks automatically.

Using a system of aisle-specific stacker cranes run by radio frequency (RF) technology to place or retrieve pallets at almost any height - its optimum work environment is in the handling of consistent pallets and multiple loads.

An ASRS (automated stacking retrieval system), in conjunction with high bay warehousing, eliminates the cost of running a forklift fleet for such applications and increases the occupational health and safety levels in warehouses by almost eliminating human interaction with this moving equipment.

Stacker crane technology can reach much higher than forklifts and operate across a wide temperature and environment band to facilitate all types of industries, conditions and atmospheric variations.

“Warehouses running on stacker cranes aren’t signalling the death knell for forklifts, but they do have a much better suitability in premises handling constant types of pallets and loads,” said Erskine.

“Stacker crane technology is configured to be extremely cost-effective regardless of how high or how low an altitude it is handling - the technology is scalable and cost efficient regardless.

“ASRS suits general transport logistics services, the food and beverage processing industry, snack foods warehousing, general industrial warehouses and retail warehousing operations.”

Industry employers missing the boat when it comes to attracting the best

Magazine Stories January Issue 2009
Thursday, 28 January 2016
RESEARCH has shown that many supply chain and procurement hiring managers are currently using recruitment practices that fail to engage supply chain and procurement professionals.

A Sydney-based company’s survey of 132 supply chain and procurement hiring managers nationally has revealed that many employers simply don’t have their finger on the pulse when it comes to knowing what motivates job seekers. As a result, they are missing out on attracting the best people in the market.

The research by Hudson — a major provider of permanent recruitment and contract professionals — showed that just one in four (26 per cent) of employers include salary information in their job advertisements, while only 37 per cent include information on career development opportunities and 38 per cent cover the provision of training in their advertisements. 

When compared with the findings of a recent Hudson 20:20 Series report — Candidate Buying Behaviour, the disconnect between the information employers provide candidates in job advertisements and the information candidates want to see, becomes evident.

“By providing information candidates want, companies stand a better chance of attracting a higher calibre candidate and a more targeted response, thus delivering a better ROI on their advertising,” said Michael Digby, practice manager, Hudson supply chain and procurement.

“In some cases, employers argue that recent increases in supply chain and procurement salaries make it difficult to advertise the salary for new roles, because if they do make salaries public they face a backlash from current staff members.

“There is also the question of competition, with employers reluctant to share their remuneration levels with the market,” said Digby.

“This is a challenge employers need to overcome, because candidates are telling us salary is a major motivator in the early stages of the job seeking process”.

New Skymat is kind to airlines, animals and the environment

Magazine Stories January Issue 2009
Thursday, 28 January 2016
A SUPER-absorbent crate mat designed to make animal waste safer in cargo holds was used for the first time earlier this month on services between Australia and China.

 Known as the Skymat, it was invented by Andrew Niemeyer, managing director of Charterair and the Sydney-based chairman of LiveAir, to combat the effects of hydroxides, particularly ammonium hydroxide on structural airframes. Niemeyer explained: "Aircraft airframes are built from aluminium and are corrosion-resistant because of a skin of aluminium oxide which forms on their surface and protects the metal.

 “Various alkali hydroxides, particularly ammonium hydroxide, can dissolve this protective aluminium oxide coating, allowing continuing oxidisation of the aluminium metal and hence serious corrosion of the airframe."

 When transporting animals in aircraft, their waste can react to form gaseous ammonia which combines with moisture to form liquid ammonium hydroxide.

 "If this seeps into the joints of the airframe it can cause serious corrosion of the structure," warned Niemeyer.

 The Skymat works because it carries a mixture of natural alumino-silicate minerals that have a high affinity for ammonia and absorb NH3+ ammonia ion from gas or liquid.

 The fine-sand-like material instantly absorbs any ammonia as it is generated, thus preventing the formation of ammonium hydroxide liquid, and other ingredients absorb all moisture from urine and faeces.

 Animals also travel in more humane conditions and arrive at the destination in better condition.

 From the animals perspective, the mat has a ‘pasture like’ texture and is not hard on hooves.

 The first shipment to benefit from Skymats was a Melbourne uplift of some 400 diary hiefers, part of an order of Friesian breeding cattle bound for Tianjin, China. Subsequent flights followed from Perth and Sydney.

 Niemeyer attended the loading of cattle in Sydney, Melbourne and Perth to monitor the process.

 He has since received reports from the consignee and the handlers that the mats performed above expectations.

 "They were very pleased with the condition of the cattle on arrival and said the quality of air in the aircraft was significantly improved due to the containment of the waste and ammonia in the crate," said Niemeyer.
HACTL
Cathay Cargo
HACTL
Cathay Cargo