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GROUND

HANDLING AGENTS

Chairman‟s Opening

Remarks

Chris Notter,

Head of Cargo Handlıng/Hub and Network,

Etihad Airways

e-AWB Mandate.

What will it Change? Angel Cabeza Rivas, Head of Network & Product

Development, Iberia Cargo

IBERIA e-AWB VISION

IATA World Cargo Symposium, Istanbul, March 9th, 2011

AGENDA

1. IB vision on e-AWB

2. The solution

3. The Status

4. What's next

IBERIA e-AWB VISION

The AWB is the common document for all shipments…

Let´s Make it HISTORY !

Number of Documents & Complexity

Benefits &

Shipments

eAWB

eFreight

Now

THE SOLUTION

Spanish Customs Support

IT Systems readiness: iberia-cargo.com & TRAXON GLOBAL CCS

eBusiness HelpDesk: eAWB & eFreight

are MAJOR changes for all participants

IATA RP1670 full endorsment as

IB eAWB standard Agreement

Forwarders & IBERIA Top Management willingness to embrace

this initiative and get eAWB benefits in early stages

IBERIA eAWB KEY SUCCESS ELEMENTS

IBERIA e-FREIGHT & e-AWB STATUS

More than 10 with Global & Local Forwarders

from Spain, Colombia, Germany

have already signed with IB eAWB Agreement

IBERIA as part of the IATA eAWB Working Group

support the IATA RP 1670, and takes it as the

Standard IB eAWB Agreement

Other 2 Global and 8 Local

Forwarders to join during 2011

IBERIA e-FREIGHT & e-AWB STATUS Total

0

500

1000

1500

2000

2500

3000

01/0

2/2

008

01/0

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2/2

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01/0

1/2

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0/2

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01/1

1/2

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01/1

2/2

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01/0

1/2

010

01/0

2/2

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7/2

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010

Total

Coloque campos de página aquí

Cuenta de Nº AWB

mes

Coloque campos de serie aquí

Over 2.000 eFREIGHT (eAWB) shipments each month and growing

e-AWB CAGR 2008-2010: +65%

MAD: 19%

SPAIN: 12%

NETWORK: 5%

% eAWB by origin

IBERIA e-FREIGHT & e-AWB STATUS

IATA MIP, Dec 2010

IBERIA 5th Airline in the World & 1st European Airline

WHATS NEXT?

Legal framework is

favourable with

MP4/MC99, and the

eAWB Agreement

defined

ALL WE NEED IS A

FIRMLY SUPPORT

FROM

INTERNATIONAL

CUSTOMS

Everything is in place now to make WORLDWIDE

the e-AWB iniciative a REALITY.

IT Systems are ready. We All (Shippers,

Forwarders &

Carriers…) are

willing to start!

Keynote: State of the Industry:

What has changed over the last 18

months, and how does it

impact the future? John Batten, Executive Vice-President Global

Cargo, Swissport International Ltd.

We care! : Ground Handling

: Cargo

: Fueling

: Executive Aviation

: Aircraft Maintenance

: Aviation Security

From landing to take-off:

What has changed over the last 18 months,

and how does it impact the future?

IATA World Cargo Symposium, Istanbul, 10th March 2011

John Batten

EVP Global Cargo

Swissport


: Cargo

: Fueling



: Aviation Security

From landing to take-off: NPT Profit* Global Commercial Aviation Industry in $b

-20

-15

-10

-5

0

5

10

15

20

91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10F

INDUSTRY MADE MONEY IN 2010

but still a net loss overall

Source = IATA * Net post-tax profit


: Cargo

: Fueling



: Aviation Security


PROGRESS IN LAST 18 MONTHS?

Not enough. Isolated pockets of activity


: Cargo

: Fueling



: Aviation Security


CARGO 3000

(or still 2000?)

Project initiated in 1997

Phase 1 incomplete / Phase 2 incomplete / Phase 3 even possible?

Main obstacles:

• Deviation from the original Master Operating Plan (MOP)

• Different application of the business rules / definitions

• Different priorities of members

It is time to create a new C2K Master Plan in order to get this paper-tiger moving!

Get Ground Handlers on the Board to make change happen faster!


: Cargo

: Fueling



: Aviation Security


e-freight

why the slow take up?

Project initiated in 2006

2009 0.1% of all international shipments were e-freight. In 2010 this increased to 0.3%. Low penetration. Why?

Main obstacles:

• Savings in time and cost are not always achieved in reality. Same flight, same clearance time. No benefit

• Where value is generated, it is not shared up and down the chain

• Low perception of added value by Forwarders

• Reluctance to invest now in future benefits

• Poor discipline with regard to messaging e.g. FWB

• Time to tackle the obstacles in order to turn paper into reality?


: Cargo

: Fueling



: Aviation Security


SECURITY

globally aligned?

Many different standards TSA, EU

No global alignment.

No direct engagement with GHA

State regulations vary e.g. RASCO is approved in FR as primary

method of screening, whilst only secondary in UK

Adoption of known shipper concept varies in its specifications

and application


: Cargo

: Fueling



: Aviation Security


INFRASTRUCTURE

is cargo the ugly duckling?

Airports prefer to invest in glamorous passenger facilities. Cardboard boxes don‟t spend money

See the growth that occurs when investment is made

• Flower market DXB

• HKG – Achieved world‟s highest air cargo volume in 2010

Regional, for example EU: Road Cargo continues to gain attractiveness versus Air Cargo for intra-continental shipments due:

• Borders controls effectively disappear. Delays at borders are reduced

• LCC pushing out Legacy Carriers on regional routes

Time to push airports to “upgrade” to commercially attractive Air Cargo infrastructure? IATA can play a role here


: Cargo

: Fueling



: Aviation Security


Information Technology

no shortage of it but seamlessly aligned?

There are tens of different cargo handling systems in use

All manage to communicate reasonably well through Freight

Status Update (FSU) messaging, but different versions are in

use

Internet offers huge potential for seamless communication

Take up of XML format is not mandatory, nor are there fixed

deadlines for compliance

As an industry we do not capture many of the possible benefits

that IT can bring


: Cargo

: Fueling



: Aviation Security


CUSTOMS

globally different

Not aligned. Not just globally or regionally, even cities like Moscow

have different customs authorities

Bureaucracy still exists in many locations

Dwell times remain too high. A shipment can be 8 hours en-route and

then another 72 hours clearing Customs.

IT can offer a partial solution, but the rest needs industry engagement

and lobbying.

WE need to offer Customs solutions that save them time and cost,

whilst at the same time making borders even more secure.


: Cargo

: Fueling



: Aviation Security


THE ROLE OF IATA

cannot act in isolation

Encouraged to see the new collaboration between IATA, FIATA,

TIACA (GACAG), but where is the GHA?

The GHA needs more involvement, we can help

Should we form a GHA Association? Let us be Drivers instead

of Passengers?

IATA still seen as looking after the needs of airlines. A more

holistic approach is required. GACAG just the start…but a good

one nevertheless


: Cargo

: Fueling



: Aviation Security


SWISSPORT IS NOT SLEEPING…….

building upon 2010

Our Initiatives:

Customer focus: CRM, product development, Customer Feedback, Continuous Improvement. Engage, Listen, Act, Review

Quality improvement: Measurement by KPI, C2K Station Certification, SLA‟s

Performance optimisation: 5S, IT upgrades, Facility re-engineering

Standardisation: Swissport Formula, Process Mapping

Training: Invest in people, retain and develop good people, deliver better quality to our Customers

Engagement, engagement, engagement!

With our Customers, and our Customers Customers

With our Management, Staff, and Suppliers


: Cargo

: Fueling



: Aviation Security


“SO WE NEED GREATER INTERACTION AND

ENGAGEMENT"


: Cargo

: Fueling



: Aviation Security


THANK YOU

John Batten

[email protected]

+41 79 834 7779

mailto:[email protected]

26

Networking Coffee Break

Sponsored by:

Panel: Improving Global Supply Chain

Synchronization And Agility.

Are We On The Right Track? (Presentations And Q&A)

Moderator: P. Balasubramanian, Mgr. Cargo Global Ops Services,

Emirates SkyCargo

Panel: Sandeep Fernandes, Mkt. Dev Mgr. Cargo & Logistics, Mercator

Sebastiaan Scholte, Chief Executive Officer, Jan de Rijk logistics

Alan Wright, Global Cargo Network Development, Swissport International Ltd

Improving Global Supply Chain

Synchronisation and Agility

- ARE WE ON THE TRACK?

IATA World Cargo Symposium 2011

9th March 2011 - Istanbul

P. Balasubramanian (Bala)

Manager Cargo Global Operations Services

Emirates Airline

Setting the tone ………

• Quality

• Standardization

• Simplification

• TECHNOLOGY

Our job was as historians would say

…

• Moving PACKAGE

• Moving DOCUMENT

• Moving INFORMATION

Rewriting history ………….

• Moving PACKAGE

• Moving DOCUMENT

• Moving INFORMATION

Reality check ? ……………

• Do we have standards …

( IATA ACM similar to IATA AHM?)

• Ever chasing standardisation ….

(Heterogeneous development ?)

• Do we have KPIs to measure vendors …

(GHA‟s activities ?)

• Do we enter information ONCE correctly and say …… that‟s it ?

(Information pipeline ?)

Who best other than ……………

• A Ground handler

• An RFS Service provider

• A Cargo systems provider

Fasten your seat belts !

www.janderijk.com

Jan de Rijk Logistics

Improving Global Supply Chain Synchronization and

Agility

Are we on the right track?

Sebastiaan Scholte – C.E.O. Istanbul, March 2011

Jan de Rijk at a glance

Over 1,000

employees and

25 offices in 15

countries in

Europe

Strong asset

based operator

with 700 trucks

and 1,300

trailers

4 lines of Business:

• International

Transport

• Warehousing

• Benelux distribution

• Retail distribution

European Road Feeder Service daily network snapshot

• Time: It is essential to deliver on time,

while being flexible in changing customer

demands

• Place: Having the required availability at

the right place trying to balance the

network as much as possible

• FTL versus LTL: Depending on customer

demands and load factor optimization

• Hubs: Operating from hubs from where

the network is optimized

• Import/Export ratio (in vs out): Trying to

complement imbalances in the network

• Availability of equipment or third

parties: Having a strong network of

external providers

Network dynamics and planning

The Goal is to achieve a high load factor

and yield, as well as utilizing your asset

(truck) as much as possible to deliver

the customer a high quality service

37

Air cargo in the procurement chain

Build/ Reconfigure/ Weigh Pallets

Load Aircraft

Offload Re- Config

Transfer Delivery Shipper

Handling Agent Forwarder Handling Agent Forwarder

Consignee

Airline

Origin Onload Airport Offload Airport Destination Trucking Trucking

Transfer

Off-line

Airport Off-line

Airport

Transfer Delivery

• Most of the transit time of an air freight shipment is on land

• Competitive advantage for an airline is therefore also on

ground

• Trucking is a large part of this transit time

Contractual relations

AIRLINE

RFS

GHA

GHA

• Relationship between GHA and RFS provider is not contractually enforceable

• Nevertheless RFS provider is often faced with long waiting hours and the GHA with relatively unplanned peaks

• Utilization of assets and load factor is important for airline and RFS provider while manpower is the biggest cost item for both the GHA and the RFS provider

• A seamless and quick transition both benefits the economics of all as well as the end consumer

Let’s align processes to ensure efficiency in the supply chain

• Vertical & horizontal collaboration in order to eliminate waste

• Information & communication is key

• Security will improve as well

• Tri-party relationship

THANK YOU

Jan de Rijk Logistics The connecting link in your supply

chain


: Cargo

: Fueling



: Aviation Security


Improving Global Supply Chain Synchronization

and Agility.

Are we on the right track?

Alan Wright

Istanbul, 10 March 2011


: Cargo

: Fueling



: Aviation Security

From landing to take-off: Lack of a single blueprint or Master Operating Plan (MOP)

Different IT platforms & FSU versions in use

System capability and management (messaging)

Lack of discipline (timings, messaging)

Lack of information e.g. % fill or volume

Players do not synchronize their modal networks

The Issues

what makes it difficult?


: Cargo

: Fueling



: Aviation Security


Who can we learn from?

Integrators have solved many issues

3/14/2011 |

End to end data integrity

Synchronization of road and air movements

Widespread Customs pre-clearance

Coordination and pre-planning of volume. Real-time manipulation

of volume. (Containerisation)

C2K Phase 3 & e-freight are not merely aspirations


: Cargo

: Fueling



: Aviation Security


So Containerisation?

what is it, and what are the advantages?

3/14/2011 |


: Cargo

: Fueling



: Aviation Security


Impossible?

Common denominators and what is missing?

3/14/2011 |

Common denominators

Air Cargo / Aircraft & Trucks / IT Systems / Warehouses / ULDs

What is missing?

- Engagement

- Planning

- Structure

- Discipline

There is huge a opportunity in front of us….

IMPROVING GLOBAL SUPPLY CHAIN

SYNCHRONIZATION AND AGILITY. ARE WE ON THE

RIGHT TRACK?

(PRESENTATIONS AND Q&A)

Quality, Standardization & simplification,

Technology

Sandeep Fernandes

Market Development Manager Cargo & Logistics, Mercator

Past worst recession

Increasing costs

Eroding yields

Customers want faster,

cheaper, reliable service

Source Boeing

Air Cargo industry situation

http://www.boeing.com/commercial/cargo/images/EXsumchart3-lrg.gif

Air Cargo industry situation

Industry response: Electronic Integration

Vertical Integration

Electronic Integration

Non Integrated Supply Chain

Electronic Integration Benefits

Reduce processing costs

Reduce processing errors

Improve delivery times

Better customer service

…Increased industry profitability

Challenges to achieve electronic integration

Standardization Vs Flexibility

– Limited Richness

– Limited Reach

„distribution control‟ > intermediaries

– CCS

– „industry‟ Portals

Intra organisation integration

The Solution: “Insource” distribution capability

Inflexible standards -> Richness and Reach?

Power of information distribution?

e-freight dilemma?

Inter/intra organisation integration?

Future proofing?

Increased Richness and Reach, through open

standards

Power of information distribution retained

e-freight benefits achieved

Inter/intra organisation integration ready

Future proofed

The tool: Integrated Message Broker

Sits “on-top” of the cargo

application

Receives data and transmits

data

Multiple Media: SMS, Email,

FTP, MQ….& Type b

Multiple Formats: <enter your

format here>

…An integral part of SkyChain

Message Broker Benefits

Combat emerging cost pressures &

mode switching through:

– Lower processing costs

– Lower communication cost

– Increased Reach & Richness

Quicker delivery times

Improved Customer Service

Retain power of distribution

Choice & Freedom

57

Panel:

(Discussion)

Chairman‟s Closing

Remarks

Chris Notter,

Head of Cargo Handlıng/Hub and Network,

Etihad Airways

59

Networking Luncheon