An industry working group has been set up by New Zealand’s Customs Brokers and Freight Forwarders Federation (CBAFF) in a bid to solve the major problem of growing queues to collect air freight, especially at Auckland Airport.
“A number of our members have raised concerns with us about the significant delays and massive queues to uplift air freight,” said Glenn Coldham (left), the Federation’s president. “The biggest problem exists at Auckland’s international air freight terminal.”
CBAFF has “encouraged consideration of all options” available to overcome the congestion, he said.
“That includes extended working hours, booking systems or even forwarder uplift priority based on freight volumes.
“Currently there is a real issue of driver safety with trucks queuing for up to several hours before the facilities open – just to make sure they are at the head of a line that will be waiting for them again when they return for their next collection.”
Coldham points out this situation has no upside.
What’s more, it appears to be getting worse, he says, creating “major challenges and stress for the freight forwarders and drivers involved.
“CBAFF has formed an industry working group which is focused on this issue and we will work with members and the cargo handlers concerned to obtain solutions.
“We do not know what the outcome will be at this stage. We are certainly open to any suggestion that may be presented – but we are aiming for a much improved outcome to that currently being experienced.”
Hong Kong conundrum
Another key issue being dealt with currently by CBAFF and NZ Customs is finding a resolution to import challenges around Chinese-made goods transported via Hong Kong.
The core problem is the confusion over whether these goods fall within the China/NZ free trade agreement or not. If they do, they would be exempt from tariffs.
“This was brought to CBAFF’s attention at a recent meeting of our air and sea freight working group,” said Coldham. A discussion was subsequently arranged with NZ Customs.
“Customs is very keen to resolve this issue too and has advised us it will investigate and shortly issue Customs Release documents that will give clarity to the situation.”
The Chinese FTA applies only to goods that are deemed to have been directly shipped from China to NZ.
The confusion centres on LCL air and sea freight which is often trucked from China to Hong Kong and held in warehouses for varying periods.
“The issue is around how a Customs broker can be confident in declaring goods as China origin-qualifying based on the documents on hand.
“Often the bill of lading/waybill will show the port of loading as Hong Kong, when in fact the shipment commenced its international journey by truck from China prior to being loaded on that vessel or flight from Hong Kong.
“The question of remains as to how to prove those goods have not entered the commerce of Hong Kong and therefore do not breach the direct shipment rule remains”
Coldham stresses that this is an important issue for CBAFF members on behalf of their clients “because legitimate claims under the FTA mean duty savings of up to 10 per cent on a shipment”.
The tidal wave spreading across the world from Istanbul – a benign tsunami of freight and passenger services – shows no sign of letting up.
Turkish Cargo got 2015 off to a high-speed start with the commissioning of its new terminal at Istanbul Ataturk Airport followed by an expansion of inter-modal road transport networking on two continents, the debut of two further freighter stations and an almost mind-boggling number of new destinations and increased frequencies for passenger flights with belly-hold capacity.
While the major impetus for network growth has been on Istanbul Atatürk, there has also been plenty of growth through Sabiha Gökçen International on the Asian side of the Bosphorus.
In late October, Turkish is launching a new service from Sabiha Gokcen to Baghdad 14 times weekly. This follows the introduction of Erbil’s seven weekly flights from Sabiha Gökçen in July and a Sabiha Gökçen/Venice service (also seven weekly) in August.
New freighter destinations making their debut in recent months include a twice-weekly Hanoi run, with two rotations: Istanbul-Tehran-Hanoi-New Delhi-Istanbul and Istanbul-Lahore-Hanoi-New Delhi-Istanbul. Hanoi brought the total Turkish Cargo freighter network ports to 52.
Dakar has also come on line as a freighter port with a once-weekly Istanbul-Lagos-Dakar-Istanbul rotation. This is the carrier’s 10th freighter destination in Africa.
Turkish has been boosting its Iraq services in a big way this year. As well as the new routes to and from Sabiha Gökçen from the beginning of July it upped the frequencies from Istanbul Atatürk to Baghdad, Erbil (both now 14 weekly), Suleymaniyah (11) and Najaf (7).
Other recent frequency boosts have been to Islamabad and Isfahan as well as a new twice-weekly link with Khujand, the second largest city in Tajikistan.
Late October is a particularly heavy month for network strengthening. In addition to the new Sabiha Gökçen/Baghdad route there will be service increases from Istanbul Atatürk to Tel Aviv (to a total of 56 flights weekly), Aqaba (4), Kuala Lumpur (10) and London Heathrow (37 weekly).
Miami and Maputo will also be added to the network, the latter on an Istanbul-Johannesburg-Maputo-Johannesburg-Istanbul rotation. An Istanbul-Johannesburg-Durban-Johannesburg-Is
THE CUSTOMS Brokers and Forwarders Council of Australia (CBFCA) has met many challenges over the years, but arguably no more than it faces today, with members challenged by the economy, new government rules and regulations and changes to trading environments.
Despite it all, membership is solid and the recent annual conference was well attended and provided solid content.
Here, in a wide-ranging Q&A session, chief executive Steve Morris lays out his concerns for today and his aspirations for the future.
AirCargo Asia-Pacific: Technology has seen many associations struggle to retain their members. How is CBFCA doing? Steve Morris: We have just completed our membership renewal process and are very happy with the numbers.
The small number that decided not to renew decided discretionary spending did not include association membership and that is perhaps a short-sighted approach with the higher levels of regulatory intervention where associations deliver on that compliance need.
However, the majority of members including the larger multinationals see the benefit industry associations bring to their compliance position and they value membership. Also, our professional development program has generated new members from individual brokers. We are in budget for memberships and very pleased with membership support and numbers.
How many attendees were at the national conference? The national conference was held at the Sheraton in the Park Sydney. We had extremely good support from industry in terms of sponsorship and strong membership turnout, with 250 attending all events. Our last three national conferences - the Gold Coast, Yarra Valley in Melbourne and now Sydney – all have been very well supported. What is particularly pleasing is the support from companies in the industry. . They are service providers who believe in supporting the association and its role in improving conditions and understanding of the role of forwarding and Customs brokering. Feedback from the conference was positive from speaker presentations, format and location.
What were the key developments at the national conference? Major issues to come out of the event included the interface with the Australian Border Force, ,trade facilitation and biosecurity. Australian needs to facilitate trade across borders.
Look at where we sit today in the OECD and the World Bank Logistics Performance Index. In many ways we have slipped down the rankings and others have passed us on trade performance.
We need to strive for better trade facilitation, both imports and exports, because to remain competitive, we must be among the best in class and ensure we minimise the cost of border intervention. At present, the government’s cost recovery program is taking close to A$750 million from importers in so-called user fees, a tax by another name.
While goods may not attract a fiscal charge (ie, duty) they still pick up significant costs in these regulatory charges. Are the services for the costs efficient or effective?. Well at this time regulators cannot deliver on advance rulings out of the ATF or from the bilateral or multi trade negotiations in the stipulated time frames.
For example, today the tariff advice turn around is at 65 days for a ruling, but it can be even longer. That’s no good if a firm is trying to work with clients to get things across a border in a timely manner and requires a ruling to confirm the classification so that it doesn’t run into issues with strict liability offences in the infringement notice scheme.
Industry is under pressure to reduce its costs in relation to trade – clients demand lower costs - however, we are still stuck with the regulator’s price structure with no equated service delivery and it’s not helping.
We also had issues with the Department of Immigration and Border Protection in its restructure because it’s struggling to get its policy into place. The Australian Border Force is in industry’s opinion making compliance judgements without an in-depth understanding of trade or the key issues of Customs law.
A lot of experienced people have left or retired from the DIBP and those that remain have not had the time to gain that same level of understanding of the law, policy and process. We already have had talks highlighting issues with the minister, the commissioner for Customs and the secretary of the Department of Agriculture and Water Resources.
What is CBFCA’s take on the initial 12-member approval of the Trans Pacific Partnership deal? We represent service providers in international trade and logistics and so we look at how the TPP will affect service deliveries. There are key issues in the TPP such as Certificates of Origin and supply chain security similar to the Australia and China on the China Free Trade Agreement. These need to be finalised and understood by all.
Will the TPP provide significant benefits to Australia? Will there be increased trade (remembering service delivery is in the agreement)? I am yet to be convinced the TPP is the best trade deal in the world. Are we better off with bilaterals like the China Australia Free Trade Agreement and the Korea Free Trade Agreement or the TPP? We will see. Regardless, TPP is a government policy decision and minister Robb spoke eloquently on how he perceives the outcome of TPP. On balance though, the TPP is all about increasing trade and as service providers to that trade we hope that Australia and industry are beneficiaries of the outcomes and economic trade benefits claimed. However, we know a lot of this trade will go through large multi-nationals And as far as CBFCA members (75 per cent of which are classified as small businesses), will they experience an increase in revenue and opportunity? We’ll see.
What is the CBFCA view on the China FTA? Is it the solution promised by the politicians or just a sellout of Australia? I note the MUA expressed concerned that the Port of Darwin is to be owned and managed by a Chinese company. I believe Australia will benefit from the trade deal with China because China is one of our key trading partners. We have a very close relationship with China on trade, whereas the TPP probably has a bigger political influence than trade. Will China look at the TPP and ask if it is an attempt to limit China’s trade influence? I am not sure.
One issue in the China Free Trade Agreement is trans-shipment of cargo over Hong Kong, which could see such consignments lose their China origin status. From a logistics and political point of view a message is being sent to Hong Kong to remind it where the real power lies. The issue has been raised by all parties but China has yet to amend this aspect and will, I believe, stick with its decision. It’s been an issue with New Zealand. Also, as to its agreement.
In the past Hong Kong was seen as the gateway to China, but this is now changing rapidly As to the Darwin port issue this remains what people see as an interesting commercial decision and I would see the sovereignty aspect as being not an issue for the Australian Navy. Authorities in Darwin said there were no strategic concerns.
Will new prime minister Turnbull deliver a more stable and prosperous Australia? The change in leadership has been positive for Australia and its overseas trading partners. Previous prime minsters both Liberal and Labour have had problems projecting the “right” image. Turnbull appears to me to be very capable. He has a refreshing philosophy on progress and how we must change to accommodate new trends
Regulatory bodies of governments - both federal and state - often refer to “stakeholder engagement”. Has the process of “consultation” improved? I have found so-called stakeholder engagement with governments tends to be cyclical. It also comes down to who is in charge and responsible for management. If the person at the top has a particular feel for the role and can imbue that into staff then progress is possible.
Consultation is all about listening to industry, analysing the input and then reaching a determined course of action. It does not necessarily mean adopting all the suggestions but the keys of listen, hear, understand are at times missing.
Some consultation is there, but I would like to see more positive moves on deliverables being integrated into the decision process.
The Australian economy has been in choppy waters this year and appears to have been helped to a great extent by lower energy costs. Do you see an improvement any time soon? Talking to people in shipping and stevedoring, they say the box reports are up on last year. It does seem to be more consistent and we seem to have avoided the peaks and troughs. This is possibly because the consumer market no longer has specific Christmas sales, there are sales throughout the year. So consumer aspects have changed.
We came late into the effects from 2008 Global Financial Crisis (GFC) and at that time the is industry sector restructured, particularly its human resources, to ensure business continuity.
With the second downturn, industry coped because it had already prepared for in the aftermath of 2008. The industry appears to have remained constant - however fewer people are becoming licensed Customs brokers.
Indeed, many Customs brokers have retired, or will retire in the near future (and many are working later in life to recover the lost superannuation of 2008 and beyond). The bell curve of age in this industry has moved up from 45/57 years to now more like 50/62, which blocks young people entering the workforce in the capacity of a licensed Customs broker.
It is also becoming more regulated, with complex Free Trade Agreements,biosecurity requirements and the impact of strict liability offences. It remains to be seen how dramatic the changes will be to the Customs broker/international freight forwarding industry in a few years – say from about 2018 to 2023.
In the near future the DIDP will issue the Terms of Reference for its review of licensing including Customs brokers licences, depot licences and warehouse licences. This ToR will have interesting implications for industry The CBFCA did not endorse all the findings in the original Review Of Licensing Review and paper, however it believed it was timely to look at licensing for Customs brokers for the future.
The industry is facing transition in terms of age and client expectations. Are we heading for major change? It is going to be very hard for the smaller enterprise to compete? Will SMEs will struggle? Will medium sized businesses with around 15-40 staff prosper by taking work lost from the small operators? All of this is what we will need to contend with in the short to medium term and with the impact of e-commerce which challenges existing business, consumer, trade and service provider models.
The Australian Border Force (ABF) has attracted criticism from some quarters for significantly ramping up its powers in line with a claimed greater threat to national security. Is the power justified?
ABF officially came into operation 01 July 2015 and as such it is a work in progress.
We do see some issues that need to be addressed in terms of its compliance monitoring in relation to trade. The commissioner spoke at the CBFCA national Conference on how he perceives his administration should work with the trade.
His philosophy was that the ABF policy will work effectively with those genuine businesses that can be trusted; those that are recidivists and in the margins... well, the ABF will take a very different view. There are some areas in the DIBP/ABF where performance improvement is needed, such as in the tariff concession and tariff advice ruling areas, but performance is mixed; it is difficult melding different thoughts and cultures and getting the concept right.
FIATA recently concluded its World Congress in Taipei. CBFCA appears to be closer to the world body. You have retained the chair of the Customs Affairs Institute. What are your aims and objectives during your next term? My key message and focus in 2016 as Chair of CAI is about having FIATA members participate in national committees on trade facilitation; we need to be in the lead of that process rather than mere bystanders.
We also have some interesting challenges ahead, particularly on the air cargo side as to future pre-loading advice similar to the UCBP Importer Security Filing Requirements. All these changes could improve border protection from a Customs and bio-security point of view. My aim as chair will be to ‘up tempo’ people’s attention on trade facilitation and work with our members to achieve better facilitation and more cost efficient and cost effective processes.
A lot of FIATA members deal with their Customs administrations to the detriment of dealing with their Foreign Affairs and Trade departments where they need to have an interface to better understand how to improve trade. By improving trade we will improve economies and make better fiscal returns .
In terms of FIATA itself, director general Marco Sorgetti, myself and two other FIATA members of the Extended Board have been tasked with looking at the future of FIATA through an internal review that was approved by the FIATA presidency, the Extended Board and the members.
Like everything in life while we believe FIATA is performing well, the question is could it do it better? The CBFCA has a strong interest in what FIATA can deliver for its member associations. We note and applaud the work of the other Australian member of FIATA and its work on FIATA committees such as the Airfreight Institute
Changes to US air cargo regulations are taking shape In an earlier edition of this magazine I provided an outline of proposed changes to the regulation of air cargo bound for the US following the decision of the US Transport Security Agency (TSA) to require 100 per cent scanning of all such cargo at a piece level.
The policy setting for the change That earlier article also referred to the efforts of the Office of Transport Security (OTS) of the Department of Infrastructure and Regional Development, working with industry stakeholders to negotiate a two-year extension to the required change to the Australian regime, subject to satisfactory compliance with a timetable set by the TSA. That timetable requires successful completion of interim stages towards the full compliance with the TSA requirements by 1 July 2017. Some details on the timetable can be found in my earlier article or on the Department’s web site. An extension of time to implement the changes Having secured the extension, the OTS has been taking the necessary steps to ensure compliance with the TSA timetable as the TSA had made it clear that failure to meet the timetable to the satisfaction of the TSA would cause the TSA to revoke the extension and require full compliance with the US 100 per cent scanning regime – “ready or not”. As you would expect, such an outcome would be a disaster for many exporters to the US and as a result, industry stakeholders have been working closely with the OTS to ensure compliance with TSA requirements and that the revised regime to be developed in Australia is fully understood by industry and capable of being met.
OTS and industry working to co-develop the new Australian regime The outreach by the OTS with industry has been happening on many levels, including through meetings with those affected around the country, the issue of questionnaires by the OTS and through the peak consultative body, the Cargo Working Group (CWG).
Representation on the CWG includes those most affected by the changes including airlines, the ECA (where I get to go along) and industry associations such as the CBFCA and AFIF. The CWG has been receiving email updates from the OTS as well as meeting on a face to face basis.
Through this process, the OTS has been seeking views of industry stakeholders and seeking to ensure that, so far as is possible, those views are incorporated into the new regime. This is consistent with the sort of “co-development” approach being taken by some Government agencies and from my perspective, the OTS is conducting such co-design as well as any agency and certainly better than many. There is real evidence that the OTS values and incorporates the views of industry.
More recent progress So, for those who may not be aware, what has been happening in addition to lots of meetings, emails and commentary?
The new Australian regime will require a proper legal structure to operate and will have a framework made by amending the primary and then will provide more details by amendments to the subordinate legislation (aka the regulations) made pursuant to that legislation. Most recently we have seen this approach in relation to the DIBP’s “Trusted Trader Program”. The aim is for flexibility while still ensuring legal compliance on the basis that “one size does not fit all”.
Like any lawyer I get a little excited about legislation and regulations. However, I have confined myself to a summary below.
Amendment to Legislation A Bill to amend the Aviation Transport Security Act 2014 was introduced into Parliament on 17 September 2015. The Bill sets out the legal basis to establish the “Known Consignor” scheme, to clarify what is meant by “cargo receiving clearance” and for other changes to meet US requirements.
Amendment to Regulations The proposed amendments to the Regulations are to focus on four areas:
- Provisions for establishing “Known Consignors” to be consistent with the ICAO “Known Consignor Security Program” with its “six pillars” of essential security measures for industry participants”. This will be flexible based on the participant but will include a high level of security.
- Streamlining of clearance provisions, particularly as they relate to Security Declarations and Chain of Custody Statements.
- Reform of RACA and ACCA arrangements.
- Transitional arrangements.
These will all be of interest, with possibly the highest level of interest on the reform to the existing RACA and ACCA arrangements which will affect the business structure and operations of many existing industry participants. More details to follow!
Known Consignor scheme trial The OTS is undertaking a trial of the proposed Scheme to run in “tranches” depending on the category of exporters within size or types of exports.
The Department and the OTS are keen to hear from those that may wish to join the Scheme. As with the ATTP, I believe there is merit in engaging as that will help in developing the Scheme and meeting its requirements. Other feedback The OTS is actively seeking engagement and feedback on the proposed new regime and welcomes comments and offers of assistance. I would encourage those affected to do so as it is developed – once developed and approved by the US it will be hard to change. As always I would be delighted to assist!
WHILE most people in ‘our’ part of the world sympathise with the plight of Middle Eastern and African refugees, the sheer numbers have caused enormous problems not only for European transport and logistics networks but also globally.
Confidence in the supply chain has been eroded, extra-worrying if more trouble is to come.
It is not helped by the suggestion that only a minority of the refugees are from war-torn regions, their lives endangered. Reporting by reputable news services indicates many are primarily economic refugees, looking for a better life, generous social welfare and the chance to gain citizenship rights.
And the poignant image of a young boy dead on a beach, used as a beacon to shame nations and communities to accept large numbers of the refugees was – while terrible in absolute terms – somewhat tainted by claims his father was a people-smuggler himself, moving from a secure but unwanted job.
None of this should lower our sense of responsibility to re-house and support genuine refugees.
But many of those who fled to ‘safety’ look like drawing the short straw yet again, while those others who disrupt transport and logistics come through triumphant. We do not know how many would-be terrorists are amongst them. Terror groups have boasted the numbers are high. It might be bluster…but maybe not.
Industry blethering that disruptions to ground transport – road, rail and associated logistics infrastructure – have been to the advantage of air cargo are fatuous.
Certainly there have been short-term advantages which might gain impetus as shippers and customers discover that air cargo is an option worth considering. The comparative costing has changed as road and rail moved to impose waiting and storage fees to cope with disruptions. But it’s unlikely that this will have a sustained impact.
What’s more, such schadenfreude fails to take account of the inter-modal restructuring of the supply chain, an evolutionary process which weighs the advantages by cost and convenience. The disruptions might have tweaked the model slightly, but it is designed to be dynamic.
Longer term effects could be more emphasis on cargo consolidation at hub airports – happening already, of course – and the spread of logistics facilities to enable close-to-market supply back-up, again now trending as online purchasing boosts feasibility. - Kelvin King
Akbar Al Baker, group chief executive of Qatar Airways (pictured), is understandably chuffed – in the polite, aristocratic manner that has always been his trademark - that the carrier has hit the top three of international air cargo operations.
He’s determined Qatar Airways Cargo will remain – forever – high on the rankings determined by IATA’s FTK figures, but there’s a twist.
Al Baker doesn’t care deeply if the airline he has done so much to create and build exponentially year by year makes it to #1.
Far better, he said at an international media briefing timed to announce several new developments and fortuitously coinciding with the IATA news, to deliver non-stop good value to customers, meeting their needs and budgets by being efficient and providing the aircraft, product and ground infrastructure to ensure this can be sustained.
“Becoming #1 doesn’t really interest us,” he said. “Our quality of service surpasses #1 and #2. We simply want to be #1 in customer service.”
The way Qatar Airways Cargo is heading, however, suggests that while service will undoubtedly remain its core, further growth is inevitable.
For this group, cargo is very, very important although earnings are also strong from passenger traffic, one of the world’s most innovative and successful travel retail (duty free) operations and a wealth of other services.
“Our cargo capability is a major component in driving our group success and growth,” said Al Baker. “It will remain a focus of our expansion in the coming years.”
The briefing at Doha’s new Hamad International Airport – which includes the existing QR cargo terminal and nearby site of a massive new terminal to be operational by 2018 – launched a portfolio of new cargo products and enhancements to others, along with an indication of further freighter deliveries.
More routes are also being readied, all carrying freight whether in belly-holds or on the super-efficient freighter fleet. It’s “the new norm,” Al Baker suggested. Legacy carriers will have to change if they want to catch up and some might not make it at all, he implies.
The new Qatar Airways Cargo products include QR Equine and QR Express, both building on existing services by broadening the customer offer, adding specialist staff and allocating management/marketing resources.
QR Equine will make more use of Qatar Airways Cargo’s sophisticated and airy live animal facility at HIA, recognising that thoroughbred purchases are growing in Qatar and elsewhere in the Middle East.
Specialist horse handling staff are being recruited to join the facility’s current vets – two of whom are on duty at all times.
With QR Express, Al Baker explained the carrier was introducing a simplified system with high boarding priority and rapid handling, guaranteeing speedy delivery. Features include short and flexible close-outs, quick ramp transfer for transit express and speedy retrieval at final destination.
Network expansion ...
As already reported, Sydney will make its network debut on March 1 and Adelaide on May 2; both will be daily.
Other new ports to be launched in the next few months include Nagpur, Durban and Ras Al Khaimah. Birmingham has just been announced as a further UK port from March 30 2016, joining London Heathrow, Manchester and Edinburgh.
And freighter ports are also increasing, notably in India.
Another Qatar Airways Cargo product, QR Pharma continues to expand as further ports on the global network are certified as being fully compliant with the needs of this exacting but profitable sector.
More freighters are on the way late this year and then deliveries are spread throughout 2016, Al Baker noted. The current freighter fleet stands at 15: Six A332, eight B772 and one leased B744 that handles oversize cargo and is facilitating growth of the carrier’s charter product. Further freighters are on order, along with some options.
The seventh and eighth A332F aircraft will arrive in December this year and next March respectively, while the B772F fleet will have its ninth, 10th, 11th and 12th deliveries in June, July and October 2016, then March 17.
That will bring the total freighter fleet to 21 by 2017. An impressive 11-stand flight line outside the current terminal is already very busy but efficiencies are such that turnaround is rapid and even the bigger fleet will cause little over-crowding.
Al Baker didn’t want to specify longer-term freighter acquisitions and deliveries.
The new cargo terminal will be close to the existing facility which has an annual capacity of 1.4 million tonnes. Its 110,000sqm multi-deck layout will allow handling of up to three million tonnes annually.
“Having the ability to handle 4.4 million tonnes of cargo a year will put Qatar Airways Cargo into another league and enhance the efficiency and service already offered,” said Ulrich Ogiermann, chief officer cargo.
Al Baker nodded. The cargoport would not be standing still even then, he mused. More expansion was inevitable as the airline and its home port thrived together.
Doha would be a huge cargo hub, he pointed out, talking of a possible seven million tonnes throughput. “I don’t think there will be any other airport with a cargo capacity likely to reach that.”
B744 for oversize cargo and extra charter capacity Qatar Airways Cargo is focused on two types of freighter, the A332 and B772. That won’t change, said group chief executive Akbar Al Baker. But a B744 freighter in all-white livery is also to be seen on the cargo terminal stands at Hamad International Airport.
Leased from Turkish operator MyCargo Airlines it was introduced in August for two reasons, explained Al Akbar: To give the company oversized cargo capabilities and to add more flexibility in the charter market, given that most of QR’s freighter fleet is heavily committed to line-haul operations.
Not having oversize capacity “gave opportunities for competitors to fill,” said Al Baker.
The current aircraft is a BCF side-loader but it will be replaced shortly by an ERF nose-loader, also from MyCargo. This will deliver even more scope for QR Charter.
“Qatar Airways Cargo is experiencing increased worldwide demand for quality charter services as well as growing local demand with significant infrastructure projects under way in Qatar that require outsized cargo capacity,” noted Ulrich Ogiermann, chief cargo officer.
An industry working group has been set up by New Zealand’s Customs Brokers and Freight Forwarders Federation (CBAFF) in a bid to solve the major problem of growing queues to collect air freight, especially at Auckland Airport.
“A number of our members have raised concerns with us about the significant delays and massive queues to uplift air freight,” said Glenn Coldham (left), the Federation’s president. “The biggest problem exists at Auckland’s international air freight terminal.”
CBAFF has “encouraged consideration of all options” available to overcome the congestion, he said.
“That includes extended working hours, booking systems or even forwarder uplift priority based on freight volumes.
“Currently there is a real issue of driver safety with trucks queuing for up to several hours before the facilities open – just to make sure they are at the head of a line that will be waiting for them again when they return for their next collection.”
Coldham points out this situation has no upside.
What’s more, it appears to be getting worse, he says, creating “major challenges and stress for the freight forwarders and drivers involved.
“CBAFF has formed an industry working group which is focused on this issue and we will work with members and the cargo handlers concerned to obtain solutions.
“We do not know what the outcome will be at this stage. We are certainly open to any suggestion that may be presented – but we are aiming for a much improved outcome to that currently being experienced.”
Hong Kong conundrum
Another key issue being dealt with currently by CBAFF and NZ Customs is finding a resolution to import challenges around Chinese-made goods transported via Hong Kong.
The core problem is the confusion over whether these goods fall within the China/NZ free trade agreement or not. If they do, they would be exempt from tariffs.
“This was brought to CBAFF’s attention at a recent meeting of our air and sea freight working group,” said Coldham. A discussion was subsequently arranged with NZ Customs.
“Customs is very keen to resolve this issue too and has advised us it will investigate and shortly issue Customs Release documents that will give clarity to the situation.”
The Chinese FTA applies only to goods that are deemed to have been directly shipped from China to NZ.
The confusion centres on LCL air and sea freight which is often trucked from China to Hong Kong and held in warehouses for varying periods.
“The issue is around how a Customs broker can be confident in declaring goods as China origin-qualifying based on the documents on hand.
“Often the bill of lading/waybill will show the port of loading as Hong Kong, when in fact the shipment commenced its international journey by truck from China prior to being loaded on that vessel or flight from Hong Kong.
“The question of remains as to how to prove those goods have not entered the commerce of Hong Kong and therefore do not breach the direct shipment rule remains”
Coldham stresses that this is an important issue for CBAFF members on behalf of their clients “because legitimate claims under the FTA mean duty savings of up to 10 per cent on a shipment”.
The tidal wave spreading across the world from Istanbul – a benign tsunami of freight and passenger services – shows no sign of letting up.
Turkish Cargo got 2015 off to a high-speed start with the commissioning of its new terminal at Istanbul Ataturk Airport followed by an expansion of inter-modal road transport networking on two continents, the debut of two further freighter stations and an almost mind-boggling number of new destinations and increased frequencies for passenger flights with belly-hold capacity.
While the major impetus for network growth has been on Istanbul Atatürk, there has also been plenty of growth through Sabiha Gökçen International on the Asian side of the Bosphorus.
In late October, Turkish is launching a new service from Sabiha Gokcen to Baghdad 14 times weekly. This follows the introduction of Erbil’s seven weekly flights from Sabiha Gökçen in July and a Sabiha Gökçen/Venice service (also seven weekly) in August.
New freighter destinations making their debut in recent months include a twice-weekly Hanoi run, with two rotations: Istanbul-Tehran-Hanoi-New Delhi-Istanbul and Istanbul-Lahore-Hanoi-New Delhi-Istanbul. Hanoi brought the total Turkish Cargo freighter network ports to 52.
Dakar has also come on line as a freighter port with a once-weekly Istanbul-Lagos-Dakar-Istanbul rotation. This is the carrier’s 10th freighter destination in Africa.
Turkish has been boosting its Iraq services in a big way this year. As well as the new routes to and from Sabiha Gökçen from the beginning of July it upped the frequencies from Istanbul Atatürk to Baghdad, Erbil (both now 14 weekly), Suleymaniyah (11) and Najaf (7).
Other recent frequency boosts have been to Islamabad and Isfahan as well as a new twice-weekly link with Khujand, the second largest city in Tajikistan.
Late October is a particularly heavy month for network strengthening. In addition to the new Sabiha Gökçen/Baghdad route there will be service increases from Istanbul Atatürk to Tel Aviv (to a total of 56 flights weekly), Aqaba (4), Kuala Lumpur (10) and London Heathrow (37 weekly).
Miami and Maputo will also be added to the network, the latter on an Istanbul-Johannesburg-Maputo-Johannesburg-Istanbul rotation. An Istanbul-Johannesburg-Durban-Johannesburg-Is
THE CUSTOMS Brokers and Forwarders Council of Australia (CBFCA) has met many challenges over the years, but arguably no more than it faces today, with members challenged by the economy, new government rules and regulations and changes to trading environments.
Despite it all, membership is solid and the recent annual conference was well attended and provided solid content.
Here, in a wide-ranging Q&A session, chief executive Steve Morris lays out his concerns for today and his aspirations for the future.
AirCargo Asia-Pacific: Technology has seen many associations struggle to retain their members. How is CBFCA doing? Steve Morris: We have just completed our membership renewal process and are very happy with the numbers.
The small number that decided not to renew decided discretionary spending did not include association membership and that is perhaps a short-sighted approach with the higher levels of regulatory intervention where associations deliver on that compliance need.
However, the majority of members including the larger multinationals see the benefit industry associations bring to their compliance position and they value membership. Also, our professional development program has generated new members from individual brokers. We are in budget for memberships and very pleased with membership support and numbers.
How many attendees were at the national conference? The national conference was held at the Sheraton in the Park Sydney. We had extremely good support from industry in terms of sponsorship and strong membership turnout, with 250 attending all events. Our last three national conferences - the Gold Coast, Yarra Valley in Melbourne and now Sydney – all have been very well supported. What is particularly pleasing is the support from companies in the industry. . They are service providers who believe in supporting the association and its role in improving conditions and understanding of the role of forwarding and Customs brokering. Feedback from the conference was positive from speaker presentations, format and location.
What were the key developments at the national conference? Major issues to come out of the event included the interface with the Australian Border Force, ,trade facilitation and biosecurity. Australian needs to facilitate trade across borders.
Look at where we sit today in the OECD and the World Bank Logistics Performance Index. In many ways we have slipped down the rankings and others have passed us on trade performance.
We need to strive for better trade facilitation, both imports and exports, because to remain competitive, we must be among the best in class and ensure we minimise the cost of border intervention. At present, the government’s cost recovery program is taking close to A$750 million from importers in so-called user fees, a tax by another name.
While goods may not attract a fiscal charge (ie, duty) they still pick up significant costs in these regulatory charges. Are the services for the costs efficient or effective?. Well at this time regulators cannot deliver on advance rulings out of the ATF or from the bilateral or multi trade negotiations in the stipulated time frames.
For example, today the tariff advice turn around is at 65 days for a ruling, but it can be even longer. That’s no good if a firm is trying to work with clients to get things across a border in a timely manner and requires a ruling to confirm the classification so that it doesn’t run into issues with strict liability offences in the infringement notice scheme.
Industry is under pressure to reduce its costs in relation to trade – clients demand lower costs - however, we are still stuck with the regulator’s price structure with no equated service delivery and it’s not helping.
We also had issues with the Department of Immigration and Border Protection in its restructure because it’s struggling to get its policy into place. The Australian Border Force is in industry’s opinion making compliance judgements without an in-depth understanding of trade or the key issues of Customs law.
A lot of experienced people have left or retired from the DIBP and those that remain have not had the time to gain that same level of understanding of the law, policy and process. We already have had talks highlighting issues with the minister, the commissioner for Customs and the secretary of the Department of Agriculture and Water Resources.
What is CBFCA’s take on the initial 12-member approval of the Trans Pacific Partnership deal? We represent service providers in international trade and logistics and so we look at how the TPP will affect service deliveries. There are key issues in the TPP such as Certificates of Origin and supply chain security similar to the Australia and China on the China Free Trade Agreement. These need to be finalised and understood by all.
Will the TPP provide significant benefits to Australia? Will there be increased trade (remembering service delivery is in the agreement)? I am yet to be convinced the TPP is the best trade deal in the world. Are we better off with bilaterals like the China Australia Free Trade Agreement and the Korea Free Trade Agreement or the TPP? We will see. Regardless, TPP is a government policy decision and minister Robb spoke eloquently on how he perceives the outcome of TPP. On balance though, the TPP is all about increasing trade and as service providers to that trade we hope that Australia and industry are beneficiaries of the outcomes and economic trade benefits claimed. However, we know a lot of this trade will go through large multi-nationals And as far as CBFCA members (75 per cent of which are classified as small businesses), will they experience an increase in revenue and opportunity? We’ll see.
What is the CBFCA view on the China FTA? Is it the solution promised by the politicians or just a sellout of Australia? I note the MUA expressed concerned that the Port of Darwin is to be owned and managed by a Chinese company. I believe Australia will benefit from the trade deal with China because China is one of our key trading partners. We have a very close relationship with China on trade, whereas the TPP probably has a bigger political influence than trade. Will China look at the TPP and ask if it is an attempt to limit China’s trade influence? I am not sure.
One issue in the China Free Trade Agreement is trans-shipment of cargo over Hong Kong, which could see such consignments lose their China origin status. From a logistics and political point of view a message is being sent to Hong Kong to remind it where the real power lies. The issue has been raised by all parties but China has yet to amend this aspect and will, I believe, stick with its decision. It’s been an issue with New Zealand. Also, as to its agreement.
In the past Hong Kong was seen as the gateway to China, but this is now changing rapidly As to the Darwin port issue this remains what people see as an interesting commercial decision and I would see the sovereignty aspect as being not an issue for the Australian Navy. Authorities in Darwin said there were no strategic concerns.
Will new prime minister Turnbull deliver a more stable and prosperous Australia? The change in leadership has been positive for Australia and its overseas trading partners. Previous prime minsters both Liberal and Labour have had problems projecting the “right” image. Turnbull appears to me to be very capable. He has a refreshing philosophy on progress and how we must change to accommodate new trends
Regulatory bodies of governments - both federal and state - often refer to “stakeholder engagement”. Has the process of “consultation” improved? I have found so-called stakeholder engagement with governments tends to be cyclical. It also comes down to who is in charge and responsible for management. If the person at the top has a particular feel for the role and can imbue that into staff then progress is possible.
Consultation is all about listening to industry, analysing the input and then reaching a determined course of action. It does not necessarily mean adopting all the suggestions but the keys of listen, hear, understand are at times missing.
Some consultation is there, but I would like to see more positive moves on deliverables being integrated into the decision process.
The Australian economy has been in choppy waters this year and appears to have been helped to a great extent by lower energy costs. Do you see an improvement any time soon? Talking to people in shipping and stevedoring, they say the box reports are up on last year. It does seem to be more consistent and we seem to have avoided the peaks and troughs. This is possibly because the consumer market no longer has specific Christmas sales, there are sales throughout the year. So consumer aspects have changed.
We came late into the effects from 2008 Global Financial Crisis (GFC) and at that time the is industry sector restructured, particularly its human resources, to ensure business continuity.
With the second downturn, industry coped because it had already prepared for in the aftermath of 2008. The industry appears to have remained constant - however fewer people are becoming licensed Customs brokers.
Indeed, many Customs brokers have retired, or will retire in the near future (and many are working later in life to recover the lost superannuation of 2008 and beyond). The bell curve of age in this industry has moved up from 45/57 years to now more like 50/62, which blocks young people entering the workforce in the capacity of a licensed Customs broker.
It is also becoming more regulated, with complex Free Trade Agreements,biosecurity requirements and the impact of strict liability offences. It remains to be seen how dramatic the changes will be to the Customs broker/international freight forwarding industry in a few years – say from about 2018 to 2023.
In the near future the DIDP will issue the Terms of Reference for its review of licensing including Customs brokers licences, depot licences and warehouse licences. This ToR will have interesting implications for industry The CBFCA did not endorse all the findings in the original Review Of Licensing Review and paper, however it believed it was timely to look at licensing for Customs brokers for the future.
The industry is facing transition in terms of age and client expectations. Are we heading for major change? It is going to be very hard for the smaller enterprise to compete? Will SMEs will struggle? Will medium sized businesses with around 15-40 staff prosper by taking work lost from the small operators? All of this is what we will need to contend with in the short to medium term and with the impact of e-commerce which challenges existing business, consumer, trade and service provider models.
The Australian Border Force (ABF) has attracted criticism from some quarters for significantly ramping up its powers in line with a claimed greater threat to national security. Is the power justified?
ABF officially came into operation 01 July 2015 and as such it is a work in progress.
We do see some issues that need to be addressed in terms of its compliance monitoring in relation to trade. The commissioner spoke at the CBFCA national Conference on how he perceives his administration should work with the trade.
His philosophy was that the ABF policy will work effectively with those genuine businesses that can be trusted; those that are recidivists and in the margins... well, the ABF will take a very different view. There are some areas in the DIBP/ABF where performance improvement is needed, such as in the tariff concession and tariff advice ruling areas, but performance is mixed; it is difficult melding different thoughts and cultures and getting the concept right.
FIATA recently concluded its World Congress in Taipei. CBFCA appears to be closer to the world body. You have retained the chair of the Customs Affairs Institute. What are your aims and objectives during your next term? My key message and focus in 2016 as Chair of CAI is about having FIATA members participate in national committees on trade facilitation; we need to be in the lead of that process rather than mere bystanders.
We also have some interesting challenges ahead, particularly on the air cargo side as to future pre-loading advice similar to the UCBP Importer Security Filing Requirements. All these changes could improve border protection from a Customs and bio-security point of view. My aim as chair will be to ‘up tempo’ people’s attention on trade facilitation and work with our members to achieve better facilitation and more cost efficient and cost effective processes.
A lot of FIATA members deal with their Customs administrations to the detriment of dealing with their Foreign Affairs and Trade departments where they need to have an interface to better understand how to improve trade. By improving trade we will improve economies and make better fiscal returns .
In terms of FIATA itself, director general Marco Sorgetti, myself and two other FIATA members of the Extended Board have been tasked with looking at the future of FIATA through an internal review that was approved by the FIATA presidency, the Extended Board and the members.
Like everything in life while we believe FIATA is performing well, the question is could it do it better? The CBFCA has a strong interest in what FIATA can deliver for its member associations. We note and applaud the work of the other Australian member of FIATA and its work on FIATA committees such as the Airfreight Institute
Changes to US air cargo regulations are taking shape In an earlier edition of this magazine I provided an outline of proposed changes to the regulation of air cargo bound for the US following the decision of the US Transport Security Agency (TSA) to require 100 per cent scanning of all such cargo at a piece level.
The policy setting for the change That earlier article also referred to the efforts of the Office of Transport Security (OTS) of the Department of Infrastructure and Regional Development, working with industry stakeholders to negotiate a two-year extension to the required change to the Australian regime, subject to satisfactory compliance with a timetable set by the TSA. That timetable requires successful completion of interim stages towards the full compliance with the TSA requirements by 1 July 2017. Some details on the timetable can be found in my earlier article or on the Department’s web site. An extension of time to implement the changes Having secured the extension, the OTS has been taking the necessary steps to ensure compliance with the TSA timetable as the TSA had made it clear that failure to meet the timetable to the satisfaction of the TSA would cause the TSA to revoke the extension and require full compliance with the US 100 per cent scanning regime – “ready or not”. As you would expect, such an outcome would be a disaster for many exporters to the US and as a result, industry stakeholders have been working closely with the OTS to ensure compliance with TSA requirements and that the revised regime to be developed in Australia is fully understood by industry and capable of being met.
OTS and industry working to co-develop the new Australian regime The outreach by the OTS with industry has been happening on many levels, including through meetings with those affected around the country, the issue of questionnaires by the OTS and through the peak consultative body, the Cargo Working Group (CWG).
Representation on the CWG includes those most affected by the changes including airlines, the ECA (where I get to go along) and industry associations such as the CBFCA and AFIF. The CWG has been receiving email updates from the OTS as well as meeting on a face to face basis.
Through this process, the OTS has been seeking views of industry stakeholders and seeking to ensure that, so far as is possible, those views are incorporated into the new regime. This is consistent with the sort of “co-development” approach being taken by some Government agencies and from my perspective, the OTS is conducting such co-design as well as any agency and certainly better than many. There is real evidence that the OTS values and incorporates the views of industry.
More recent progress So, for those who may not be aware, what has been happening in addition to lots of meetings, emails and commentary?
The new Australian regime will require a proper legal structure to operate and will have a framework made by amending the primary and then will provide more details by amendments to the subordinate legislation (aka the regulations) made pursuant to that legislation. Most recently we have seen this approach in relation to the DIBP’s “Trusted Trader Program”. The aim is for flexibility while still ensuring legal compliance on the basis that “one size does not fit all”.
Like any lawyer I get a little excited about legislation and regulations. However, I have confined myself to a summary below.
Amendment to Legislation A Bill to amend the Aviation Transport Security Act 2014 was introduced into Parliament on 17 September 2015. The Bill sets out the legal basis to establish the “Known Consignor” scheme, to clarify what is meant by “cargo receiving clearance” and for other changes to meet US requirements.
Amendment to Regulations The proposed amendments to the Regulations are to focus on four areas:
- Provisions for establishing “Known Consignors” to be consistent with the ICAO “Known Consignor Security Program” with its “six pillars” of essential security measures for industry participants”. This will be flexible based on the participant but will include a high level of security.
- Streamlining of clearance provisions, particularly as they relate to Security Declarations and Chain of Custody Statements.
- Reform of RACA and ACCA arrangements.
- Transitional arrangements.
These will all be of interest, with possibly the highest level of interest on the reform to the existing RACA and ACCA arrangements which will affect the business structure and operations of many existing industry participants. More details to follow!
Known Consignor scheme trial The OTS is undertaking a trial of the proposed Scheme to run in “tranches” depending on the category of exporters within size or types of exports.
The Department and the OTS are keen to hear from those that may wish to join the Scheme. As with the ATTP, I believe there is merit in engaging as that will help in developing the Scheme and meeting its requirements. Other feedback The OTS is actively seeking engagement and feedback on the proposed new regime and welcomes comments and offers of assistance. I would encourage those affected to do so as it is developed – once developed and approved by the US it will be hard to change. As always I would be delighted to assist!
WHILE most people in ‘our’ part of the world sympathise with the plight of Middle Eastern and African refugees, the sheer numbers have caused enormous problems not only for European transport and logistics networks but also globally.
Confidence in the supply chain has been eroded, extra-worrying if more trouble is to come.
It is not helped by the suggestion that only a minority of the refugees are from war-torn regions, their lives endangered. Reporting by reputable news services indicates many are primarily economic refugees, looking for a better life, generous social welfare and the chance to gain citizenship rights.
And the poignant image of a young boy dead on a beach, used as a beacon to shame nations and communities to accept large numbers of the refugees was – while terrible in absolute terms – somewhat tainted by claims his father was a people-smuggler himself, moving from a secure but unwanted job.
None of this should lower our sense of responsibility to re-house and support genuine refugees.
But many of those who fled to ‘safety’ look like drawing the short straw yet again, while those others who disrupt transport and logistics come through triumphant. We do not know how many would-be terrorists are amongst them. Terror groups have boasted the numbers are high. It might be bluster…but maybe not.
Industry blethering that disruptions to ground transport – road, rail and associated logistics infrastructure – have been to the advantage of air cargo are fatuous.
Certainly there have been short-term advantages which might gain impetus as shippers and customers discover that air cargo is an option worth considering. The comparative costing has changed as road and rail moved to impose waiting and storage fees to cope with disruptions. But it’s unlikely that this will have a sustained impact.
What’s more, such schadenfreude fails to take account of the inter-modal restructuring of the supply chain, an evolutionary process which weighs the advantages by cost and convenience. The disruptions might have tweaked the model slightly, but it is designed to be dynamic.
Longer term effects could be more emphasis on cargo consolidation at hub airports – happening already, of course – and the spread of logistics facilities to enable close-to-market supply back-up, again now trending as online purchasing boosts feasibility. - Kelvin King
Akbar Al Baker, group chief executive of Qatar Airways (pictured), is understandably chuffed – in the polite, aristocratic manner that has always been his trademark - that the carrier has hit the top three of international air cargo operations.
He’s determined Qatar Airways Cargo will remain – forever – high on the rankings determined by IATA’s FTK figures, but there’s a twist.
Al Baker doesn’t care deeply if the airline he has done so much to create and build exponentially year by year makes it to #1.
Far better, he said at an international media briefing timed to announce several new developments and fortuitously coinciding with the IATA news, to deliver non-stop good value to customers, meeting their needs and budgets by being efficient and providing the aircraft, product and ground infrastructure to ensure this can be sustained.
“Becoming #1 doesn’t really interest us,” he said. “Our quality of service surpasses #1 and #2. We simply want to be #1 in customer service.”
The way Qatar Airways Cargo is heading, however, suggests that while service will undoubtedly remain its core, further growth is inevitable.
For this group, cargo is very, very important although earnings are also strong from passenger traffic, one of the world’s most innovative and successful travel retail (duty free) operations and a wealth of other services.
“Our cargo capability is a major component in driving our group success and growth,” said Al Baker. “It will remain a focus of our expansion in the coming years.”
The briefing at Doha’s new Hamad International Airport – which includes the existing QR cargo terminal and nearby site of a massive new terminal to be operational by 2018 – launched a portfolio of new cargo products and enhancements to others, along with an indication of further freighter deliveries.
More routes are also being readied, all carrying freight whether in belly-holds or on the super-efficient freighter fleet. It’s “the new norm,” Al Baker suggested. Legacy carriers will have to change if they want to catch up and some might not make it at all, he implies.
The new Qatar Airways Cargo products include QR Equine and QR Express, both building on existing services by broadening the customer offer, adding specialist staff and allocating management/marketing resources.
QR Equine will make more use of Qatar Airways Cargo’s sophisticated and airy live animal facility at HIA, recognising that thoroughbred purchases are growing in Qatar and elsewhere in the Middle East.
Specialist horse handling staff are being recruited to join the facility’s current vets – two of whom are on duty at all times.
With QR Express, Al Baker explained the carrier was introducing a simplified system with high boarding priority and rapid handling, guaranteeing speedy delivery. Features include short and flexible close-outs, quick ramp transfer for transit express and speedy retrieval at final destination.
Network expansion ...
As already reported, Sydney will make its network debut on March 1 and Adelaide on May 2; both will be daily.
Other new ports to be launched in the next few months include Nagpur, Durban and Ras Al Khaimah. Birmingham has just been announced as a further UK port from March 30 2016, joining London Heathrow, Manchester and Edinburgh.
And freighter ports are also increasing, notably in India.
Another Qatar Airways Cargo product, QR Pharma continues to expand as further ports on the global network are certified as being fully compliant with the needs of this exacting but profitable sector.
More freighters are on the way late this year and then deliveries are spread throughout 2016, Al Baker noted. The current freighter fleet stands at 15: Six A332, eight B772 and one leased B744 that handles oversize cargo and is facilitating growth of the carrier’s charter product. Further freighters are on order, along with some options.
The seventh and eighth A332F aircraft will arrive in December this year and next March respectively, while the B772F fleet will have its ninth, 10th, 11th and 12th deliveries in June, July and October 2016, then March 17.
That will bring the total freighter fleet to 21 by 2017. An impressive 11-stand flight line outside the current terminal is already very busy but efficiencies are such that turnaround is rapid and even the bigger fleet will cause little over-crowding.
Al Baker didn’t want to specify longer-term freighter acquisitions and deliveries.
The new cargo terminal will be close to the existing facility which has an annual capacity of 1.4 million tonnes. Its 110,000sqm multi-deck layout will allow handling of up to three million tonnes annually.
“Having the ability to handle 4.4 million tonnes of cargo a year will put Qatar Airways Cargo into another league and enhance the efficiency and service already offered,” said Ulrich Ogiermann, chief officer cargo.
Al Baker nodded. The cargoport would not be standing still even then, he mused. More expansion was inevitable as the airline and its home port thrived together.
Doha would be a huge cargo hub, he pointed out, talking of a possible seven million tonnes throughput. “I don’t think there will be any other airport with a cargo capacity likely to reach that.”
B744 for oversize cargo and extra charter capacity Qatar Airways Cargo is focused on two types of freighter, the A332 and B772. That won’t change, said group chief executive Akbar Al Baker. But a B744 freighter in all-white livery is also to be seen on the cargo terminal stands at Hamad International Airport.
Leased from Turkish operator MyCargo Airlines it was introduced in August for two reasons, explained Al Akbar: To give the company oversized cargo capabilities and to add more flexibility in the charter market, given that most of QR’s freighter fleet is heavily committed to line-haul operations.
Not having oversize capacity “gave opportunities for competitors to fill,” said Al Baker.
The current aircraft is a BCF side-loader but it will be replaced shortly by an ERF nose-loader, also from MyCargo. This will deliver even more scope for QR Charter.
“Qatar Airways Cargo is experiencing increased worldwide demand for quality charter services as well as growing local demand with significant infrastructure projects under way in Qatar that require outsized cargo capacity,” noted Ulrich Ogiermann, chief cargo officer.
“A number of our members have raised concerns with us about the significant delays and massive queues to uplift air freight,” said Glenn Coldham (left), the Federation’s president. “The biggest problem exists at Auckland’s international air freight terminal.”
The tidal wave spreading across the world from Istanbul – a benign tsunami of freight and passenger services – shows no sign of letting up. 
How many attendees were at the national conference?
An extension of time to implement the changes
Akbar Al Baker, group chief executive of Qatar Airways (pictured), is understandably chuffed – in the polite, aristocratic manner that has always been his trademark - that the carrier has hit the top three of international air cargo operations.
