Professional Documents
Culture Documents
34 ˆ SEPTEMBER 2008
cargovision
The importance of being connected
Window seats
Fuel surcharge
HIGHER
EVOLUTION
cargovision editorial
PORTRAIT VIEW
■ October marks the third year since the integration of Air France Cargo and KLM Cargo began. We want
to invite you to learn of the changes and improvements to AF-KL Cargo during this time. Inside this special
anniversary issue of Cargovision, you will find management’s discussion of the company’s recent achieve-
ments and current expectations.
During the past 24 months, 24 airlines filed for bankruptcy in the US and experts say it’s not over. Kerosene
prices are rising even faster than oil prices. Expensive fuel and the recession are slowing global manufacturing
with a harsh and disproportionate effect on air cargo.
Much of today’s production material moves through the global supply chains as airfreight. High fuel prices
handicap air shipments because fuel is a larger part of the operating cost for an aircraft than it is for an ocean
vessel. With increasing logistics costs and ongoing pressures to reduce them, many companies are
rethinking their global supply networks and relocating production to lower cost neighbors.
Yet, as markets diminish and their challenges grow, we must acknowledge a coincidence of timing. Three
years of constructing AF-KL Cargo has transformed us into a company that will thrive in the current environ-
ment. In our main feature, Michael Wisbrun and Jean Charles Foucault recall the strategy and the initiatives
that the Joint Cargo Management Committee introduced in order to position AF-KL Cargo for the future. In
other areas of interest, we asked our experts to report on the progress in their specialized fields.
Process reform is central to the company’s efforts to improve the quality of its services. Mattijs ten Brink and
Francis Isidoro explain how alignment has added to the quality at Charles de Gaulle and Schiphol.
E-commerce is more efficient than paper for exchanging information and documents. Edwin Borst and Eelco
van Asch describe how integrating the various electronic programs will help AF-KL Cargo reduce costs and
improve the service for the customer.
Fleet planning is a complicated part of running a profitable airline. Bringing in new aircraft and coping with
expensive fuel add even more spice, as Arend de Jong reports. In another twist, the amount of air cargo
carried in passenger bellies compared to freighters has grown during the last two years. Dick van den Berg,
our in-house analyst, looks at the trends and their causes.
AF-KL operates in 45 unique markets. In our feature entitled ‘Sweet Paradise’, Michael Westlake looks at
three of the lesser known though fascinating places off the beaten track – hugely popular as tourist spots
with great natural beauty and each with its own colorful history.
Sincerely,
The JCMC
Joint Cargo Management Committee
Michael Wisbrun
Arend de Jong
Jean Charles Foucault
Claude Sereno
Pascal Morvan
2 cargovision | SEPTEMBER 08
cargovision contents
© /Holllandse Hoogte
Window seats, page 15
4 HIGHER EVOLUTION
The Air France Cargo and KLM Cargo integration, now celebrating its third anniversary, formed a new,
efficient organization that is now preparing to withstand economic headwinds. Cargovision spoke to
Michael Wisbrun and Jean-Charles Foucault.
14 WINDOW SEATS
To find out how customers are experiencing the AF-KL Cargo merger, Cargovision spoke with two forwarders:
Luc Desreveaux, branch manager for the Sogetra office at Lille airport, and Lionel Rittner, deputy airfreight
manager, France, for Gondrand Group.
20 QUALITY BREEDS
A key driver behind the merger of Air France and KLM was the desire to improve efficiency, flexibility and
customer service in both organizations. Achieving such a goal is never easy, but it is possible.
26 ASSET SHUFFLE
Quality breeds, page 20 Fleet planning is always tricky, even without the additional complication of introducing a new aircraft,
like the Boeing 777 freighter. Add high fuel prices to the equation and you have constantly changing
imperatives for network planners.
COVER IMAGE
Aerial view above clouds
© Photodisc/Image Select
cargovision 3
HIGHER
EVOLUTION
© Hemis/Image Select
4 cargovision | SEPTEMBER 08
The Air France Cargo and KLM Cargo integration, now celebrating
its third anniversary, formed a new, efficient organization that is
now preparing to withstand economic headwinds.
BY TONY CARDING
RUGGED LANDSCAPE
Michael Wisbrun recalls how the Joint Cargo Management Committee oversaw
AF-KL Cargo’s successful merger and how the company intends to remain profitable
while it tackles new partnerships, new technologies and the environment.
“ Clearly, we have a difficult environment before us. routes. We have a diverse product portfolio that
As Giovanni Bisignani, IATA’s CEO, stated: the oil serves a wide range of customers.
price shock is bigger now than it was during the We have hedged fuel and that gives us a window of
1970s. This and the US financial crisis are causing two to three years to refocus the network, reallocate
people to alter their purchasing behavior and our capacity and lower costs.
industry to anticipate lower revenue. Under these
conditions, no company in transportation can afford
to continue as before. Shippers will make new trade- THREE YEARS ON
offs and reorganize their logistics. Carriers will change Our three-year evolution to this robust state can be
their networks and fleets to accommodate them. summarized with three Ps. The first one is for people:
those in the Joint Cargo Management Committee
Fortunately, our three-year integration has consoli- (JCMC), the team we created to lead our two organi-
dated our strength and ability to weather a down- zations step-by-step into one integrated team, and
turn. The future holds risks but I am not concerned those within the organizations, who continually
for the outcome. We will work hard and we will showed us new ways to work together effectively.
manage. We do have advantages: AF-KL has a The second P is for the processes we designed for
global network and a relatively new fleet that can the merger, for its preparation, decision-making and
serve our customers and still operate economically. cooperation. We found a steady rhythm for
The company is financially sound and we keep the managing our business and our customers. It was
fleet young with continuous investment. something completely new for a French-Dutch
Even though the merger produced synergies that combination. We can maintain the pace, in part,
have lowered costs by over US$100 million, greater because the JCMC developed a schedule for various
savings are still to come. We will introduce even management groups to review the practical issues
more unit cost reductions this coming year. they supervise. I meet weekly with the top team,
Our strong hub system allows greater fleet utilization monthly with the top 10 and quarterly with the top
and operates more economically than a point-to- 40. During these gatherings, we strive for clarity in
point network. We have the flexibility with our reaching decisions, in where we make tradeoffs and
freighters to allocate capacity to the most profitable in how we organize ourselves.
cargovision 5
cargovision higher evolution
The third P stands for purpose in life – our business Cargo and KLM Cargo businesses in North America
life. What is our goal? In 2005, we introduced the has become a priority. We will soon discuss with
concept of one team, one process and one face Delta the best solutions for integrating the combined
towards the customer. This helped define our airfreight business of Delta and Northwest. Our
purpose. It helped us unite and recognize our role as organization will gain efficiency and our customers
a leading cargo airline. Leading in for example will gain options.
reducing CO2 emissions and innovating e- Similarly, the Martinair Scenario, as I like to call it,
commerce, e-freight and other technologies. is intended to strengthen the AF-KL Group. We have
filed for the full takeover of the remaining 50% of the
shares. Currently the European Union is studying
PRIORITY WITH A “P” the case and we are awaiting approval.
Michael Wisbrun: Remaining profitable means that we put our daily
“Our innovations are effort in satisfying our customers and in creating
really investments with synergies. If we find that we are not profitable, we will ADVOCATE AND INNOVATE
customs and industry stop and change the scale or the scope of our busi- In my role as chairman of the IATA Cargo Committee,
to make the airfreight ness. Profits are the basis for our investment and I challenged the organization to put e-freight at the
process easier for therefore our future. top of the priority list and translate it into action. They
our clients” Going forward, our second priority is to strengthen have done this through a number of pilot projects,
the AF-KL Cargo presence at our home bases. including one through Schiphol.
Our aircraft and equipment may be like our competi- The pilots showed that we could eliminate paper
tors’ but we have created noticeable differences in from cargo. However, it is a bit tougher than paper-
service by the clever management of our business less travel for passengers. There, they removed the
processes and consideration for our customers. ticket but kept the passport. In cargo, we want to
At Charles de Gaulle and Schiphol, our innovations remove both the ticket and the passport at the same
are really investments with customs and industry to time. That means additional steps for customs and
make the airfreight process easier for our clients; for involves additional stakeholders. Nevertheless, after
example, introducing e-freight at both hubs and an the success of paperless transport in the pilot
express lane for cargo at Schiphol, where simulta- programs, we are seeing greater variety among the
neous checks for customs and security will enable shipments booked and are now working to increase
shipments to proceed directly to the aircraft. volume before adding more routes. We expect elec-
The third priority is to position us in key markets. tronic bookings for half of the cargo on the existing
In the largest market of the future, China, we are routes within five years.
creating a Sino-European cargo joint venture with AF-KL Cargo now receives 23% of its bookings elec-
China Southern Airlines. It will have shareholding tronically. We intend to add other electronic services
from the AF-KL Group and management from for our customers and we will replace the two Air
AF-KL Cargo too. It begins flying early in 2009 with France Cargo and KLM Cargo legacy systems with
the Boeing 777 freighter too. It is a welcome step a single new web-based platform. Besides lowering
towards increasing our involvement in China. costs and consolidating our two back offices, it will
help us use customer databases to develop new
services.
PARTNER WITH PURPOSE
We signed a framework agreement for the joint Air France – KLM is pursuing CO2 neutral operations
venture in June and expect formal approval from the by reducing aircraft weight and increasing overall effi-
Civil Aviation Authority of China by the year-end. ciency. In cargo, we will offer CO2 neutral transport for
In the meantime, we are assigning people for the customers’ shipments. By the end of the year, they
new management team. This investment is for cargo will be able to buy CO2 rights to offset the impact of
today but perhaps for passengers tomorrow. their shipment.Along with IATA, we are supporting a
Our current work with China Southern in catering consultant who is mapping CO2 footprints for various
and other activities is building trust and moving the methods of production and transportation.
two companies closer together. Our industry still does not know which mode has the
Now the USA Anti Trust Immunity has been granted, least CO2 impact: asparagus brought to the corner
we will be able to coordinate service and capacity market by air from Africa or by truck from a local
between Europe and America with our SkyTeam greenhouse. Once we have the facts, we can offer
partners. Now, the consolidation of the Air France customers tradeoffs to lower their emission profile.”
6 cargovision | SEPTEMBER 08
© Hideo Kurihara/Image Select
“ At the beginning of the merger, we encountered a clients while Customer Service people can attend to
paradox: change the organization but maintain a sta- the immediate business. Between reorganizing and
ble environment. It told us to proceed with very small adding new computer tools, we have significantly
steps. We aligned the operating networks between lowered the amount of time spent per booking. New
Schiphol and Charles de Gaulle, putting considerable automation, such as the Unique Voice Portal for the
effort at both hubs into improving basic skills and customer services organization, and new e-business
increasing the quality of service on the ground. We tools that link with our customers have improved
introduced Cargo 2000 with full support. It gives us a productivity. The number of bookings per person has
measure for high-quality service and a definite grown continually since the merger. We have been
advantage when customers are buying capacity in able to reassign people to Sales and watch the
an oversaturated market. number of bookings grow for Equation, Cohesion
Jean-Charles Foucault: and Variation.
“We encountered a At the same time, we combined the best features of
paradox: change the the two sales and marketing organizations. In Our business from tripartite agreements, those with
organization but maintain creating AF-KL Cargo, we merged offices and reor- shippers and forwarders together, is now the fastest
a stable environment” ganized the responsibilities of people in Sales, growing part of our business. We do not target ship-
Customer Service and Operations. Introducing these pers; our policy is based strictly on relationships with
‘Model Offices’ was a big change but it clarified the forwarders. However, shippers and forwarders want
division of labor for our staff around the world. Now, joint discussions with airlines when contracts get
they perform more consistently with customers. very large. Then, we are included.
Everyone has a clear job description and knows
which responsibilities belong to presales, to order Looking ahead, into a hostile shipping climate, we
taking and to the back office. feel prepared. But conditions force us to be ever-
more efficient and clever in identifying airfreight
Highly efficient people improve our quality of service. buyers in key markets so we can offer them the
Sales people can now focus on their portfolios of appropriate service from our broad portfolio.”
cargovision 7
cargovision news around the world
8 cargovision | SEPTEMBER 08
cargovision news around the world
Carriers - World
BANGKOK
The Thai Government told Thai Airways International in
June to begin setting up a cargo airline to increase the
flow of Thailand’s exports to international markets.
High fuel prices and internal politics have distracted
the airline’s management lately and could delay Online - World
startup of the cargo carrier. However, this is only one
course that Thai government officials are pursuing in SINGAPORE
their quest to improve the nation’s transport infrastruc- Cargo Community Network received Cargo 2000 accreditation in March.
ture. They also want to see greater utilization of both The network has been providing online connectivity to the cargo commu-
Don Muang and Suvarnabhumi airports for moving nity in the Asia-Pacific region since 1991. CCN has actively promoted
cargo. And they are considering the possibility of liber- Cargo 2000 in addition to IATA’s e-freight and MIP programs.
alizing the logistics industry under the World Trade
Organization. Foreign ownership is currently capped at Jet8 Airlines Cargo, Singapore’s first privately owned cargo carrier, said in
a maximum of 49% for logistics service operators in July that it would automate its airline and revenue accounting with Champ
Thailand. Cargo systems. Jet8 operates Boeing 747-200s and 400s in an alliance
with Nippon Cargo Airlines. Previously, in June, Royal Jordanian signed a
BRUSSELS contract to use Champ, as did Skyport for its operations at Prague cargo
Brussels Cargo launched daylight courier services in terminal.
June to major cities across Europe. The cargo division
of Brussels Airlines will carry shipments of up to 32 kg ABU DHABI
between Brussels and Athens, Barcelona, Lisbon, Etihad said in July it would begin using OAG Cargo’s Air Freight Rates
Nice, Madrid and Warsaw. application and its Inforwarding Announcements service. Approximately
9,700 forwarders now access information on the enhanced OAG Cargo
BOGOTÁ website, which describes the cargo carrying flights operated by 900
Colombian authorities endorsed the creation of a new airlines to and from nearly 3,500 cities.
cargo affiliate airline of LAN Cargo in their country. The
operational and technical certification process should GENEVA
take six months, enabling the Colombian carrier to IATA has posted an interactive e-freight map on its website:
begin operations during the first quarter of 2009. http://www.iata.org/stbsupportportal/maps/e-freight.htm. It enables you
Colombia exports about 200,000 tons of airfreight to to track the progress of various e-freight initiatives around the world.
the US, making it one of the largest markets in Latin Clicking on a destination shows the protocols it has signed and whether it
America. LAN Cargo also owns and operates cargo is e-freight capable, when it plans to implement the service and whether or
affiliates in Brazil and Mexico. not it has passed either of IATA’s e-freight assessments.
cargovision 9
cargovision news around the world
Weddings and Funerals - World has been carrying half of the weight of DHL Express
US traffic and had signed a new contract with DHL
ATLANTA just three months earlier. In June, ALPA filed a griev-
Delta and Northwest agreed to merge in April. The combined company ance against the merger, saying that DHL had
and its regional partners will provide access to more than 390 destinations endorsed the commitments and at no time mentioned
in 67 countries. They will have revenue of US$35 billion, a staff of 75,000, any ongoing negotiations with UPS. DHL is a 49%
and a fleet of 800 aircraft. The deal with Northwest could improve Delta’s owner of ASTAR and is represented on ASTAR’s
position in the cargo business, adding Northwest’s strength in Asia to Board of Directors.
Delta’s in Europe. By July, the prospect of losing 9,000 jobs at the
However, fuel is the highest single expense for both carriers and the ASTAR sorting facility near Dayton, Ohio, got the
biggest headache. Its record prices threaten to cancel the financial benefits attention of the area’s congressman, Mike Turner,
of restructuring as well as the combined airline’s long-term strength and who, along with Ohio’s two senators, sent a letter to
stability. Some analysts wanted to see Delta propose greater reductions in the US Attorney General asking the Justice Depart-
short-term costs and capacity because the revenue benefits of the merger ment to look at the potential anti-competitive impact of
will not accrue for another two to four years. DHL’s planned agreement with UPS.
BONN ISTANBUL
Deutsche Post World Net said in May that it would restructure its DHL Air France-KLM and China Southern met near the
Express US business. Under the plan, DHL will develop a contract with Bosporus in June. The two airlines agreed to establish
UPS during the next few months that enables UPS to provide airfreight a Sino-European cargo joint venture. The new busi-
capacity for the domestic and international services of DHL Express in ness will provide airlift for cargo and mail, ground
North America. DHL will also consolidate and close sorting facilities and handling services, operation of warehouses and other
rationalize its ground networks. DPWN said that this would affect less than storage services, customs clearance activities, and
4% of its shipments and produce no changes in its product range or import and export services. The agreement is for
service commitment in North America. The contract with UPS is expected China Southern to hold a 75% stake in the venture
to last 10 years and could save DHL US$1 billion annually. It was described and the Air France-KLM Group to hold 25%. It still
as a straightforward airlift agreement and would enable UPS and DHL to needs government approval, which is expected by
compete for customers. year-end.
The announcement did not sit well with ASTAR Air Cargo or its crew
members, who are represented by the Airline Pilots Association. ASTAR Financial – United Kingdom
LONDON
A market in purchasing future contracts for airfreight
capacity may be moving closer to reality given the
constantly rising fuel prices and the vigorous activity in
the market for contracts based on ocean shipping.
Brokers say that the shipping futures market reached
US$125 billon last February, up from US$50 billion at
the same time in 2007. Several large companies have
set up freight derivatives desks in the past year,
including Citigroup, Merrill Lynch, Macquarie Bank,
© Avatra images/Image Select
10 cargovision | SEPTEMBER 08
cargovision news around the world
© Look/Image Select
agreements grew 150% during the past year. Rising by a study released last year by the Associated Chambers of Commerce
demand for commodities has driven up the cost of and Industry of India that said surging demand had pushed the growth of
chartering ships to transport them and increased the air cargo ahead of that moved by rail and sea.
appetite for instruments that help shippers manage
future rates. For example, rates for a Capesize ship, HAMBURG
used to transport iron ore and coal, rose to Airport officials from Germany’s northern port city are talking with Shanghai
US$233,988 a day in June, 180% higher than the Airlines and Air China to develop a sea-air business. With 400 local China-
January rate of US$80,000. A volatile airfreight market based companies reputedly located in Hamburg, it is the largest container
with carriers and forwarders concluding similar agree- port for import traffic from China.
ments could inspire brokerage firms to develop finan-
cial instruments for them.
Aircraft - Asia
cargovision 11
cargovision news around the world
BRUSSELS
The European Commission agreed to a common standard for rail signaling
in April. The standard will remove one technical barrier in the commission’s
goal of integrating rail freight services across Europe.
PARIS
Alstom SA, the French manufacturer of transport and energy equipment,
said in June that it would develop a cargo version of its TGV train that
would enable operators to carry express parcels over Europe’s growing
high speed rail network. Meanwhile, France’s state railway company,
SNCF, said it would increase its 42% holding in the French forwarding
group, Geodis, by acquiring the remaining shares at €135 per share. The
move is seen as a way for SNCF to lower its labor costs for freight handling
and return it to profitability. Also, Air France-KLM said in July they would
join forces with French freight operator Veolia Transport and launch high-
speed rail services from Charles de Gaulle to destinations throughout
Europe. Although the announcement concerned passengers, there is a
strong possibility the services could include freight. Rail transportation uses
half as much fuel as trucks and a quarter as much as aircraft.
© Mediacolor’s/Image Select
12 cargovision | SEPTEMBER 08
cargovision datelines
cargovision 13
WINDOW
SEATS
To find out how customers are experiencing the merger of AF-KL Cargo we spoke with
two forwarders: Luc Desreveaux, branch manager for the Sogetra office at Lille airport,
and Lionel Rittner, deputy airfreight manager, France, for Gondrand Group.
BY MARK SOLOMON
14 cargovision | SEPTEMBER 08
BIOS:
© /Holllandse Hoogte
charge of airfreight and sea
freight purchases. He joined
the company in 2004 with
nearly 20 years experience in
the air and ocean freight.
Lyon-Saint Exupéry Airport
Gondrand provides interna-
The availability of lift has become even more impor- LR: We have one contact buying and selling both tional air and ocean freight
tant now that rising fuel costs are forcing airlines to Air France and KLM destinations. This helps us be services with a staff of 1,250
rationalize freighter and belly space. We have not more productive in purchasing airfreight. We have people. It was founded in Italy
experienced problems with lift from AF-KL Cargo. also experienced faster responses to our rate in 1866 and is now headquar-
requests, bookings and special requests. tered in Paris. Gondrand’s
LR: The global network is larger and more efficient, turnover was €377 million
which enables us to offer more attractive and innova- in 2007.
tive solutions. We are also pleased with the Q: Why did the merger of AF-KL Cargo
company’s patient and deliberate approach to succeed after so many previous unions Luc Desreveaux has been
assembling a combined network. It was well thought between airfreight companies failed? branch manager for the
out and left nothing to chance. Sogetra office at Lille airport
LD: In our view, the key was a total acceptance and since 1993. He joined the
Access to a geographically dense network with two understanding of the combination at all levels from company in 1987 and worked
entrance points in Europe has increased our flexibility top management down the ladder. Communication previously as sales representa-
in the services we offer. Overall, their service is better at all levels was superb, and everyone was strongly tive for a regional French freight
today with the single company than it was a few encouraged to work together towards a common forwarding company.
years ago with two separate organizations. goal. There was no “clash of cultures” that you often He graduated with degrees in
see with combinations in the airline business. The marketing, sales, and English
emerging AF-KL Cargo organization embraced and & German languages.
Q: How have the expanded services created accepted everyone’s viewpoints, including ours, and
by the merger helped you? there was very strong and positive cooperation Sogetra provides international
among all participants. air, ocean and highway services
LD: We have seen improved access to complimen- with a staff of 160 people.
tary products and effective balancing of the two LR: Sometimes we make things more complicated Founded in 1952, company
airlines’ strengths. For example, Air France is very than they need to be. Air France and KLM took a headquarters are in Dunkirk
skilled in general cargo while KLM has extensive expe- combined entity and built simple solutions that corre- and the Lille airport office,
rience and knowledge in perishables, especially cut sponded to our needs and those of our customers. under Mr. Desreveaux, special-
flowers. Besides increasing their geographic The message to the industry from the combination izes in textiles, garments and
coverage, the two companies have now combined is to act simply and efficiently and your customers pharmaceuticals. Sogetra’s
their complimentary product strengths under one roof. will follow. ■ turnover was €100 million
That is a great benefit to our customers and to us. in 2007.
cargovision 15
THE IMPORTANCE OF BEING
CONNECTED
Individual e-commerce tools may produce benefits,
but when they are linked up, the advantages become
really clear. Integration is the key to the AF–KL Cargo
implementation of this technology.
BY PETER CONWAY
■ The commercial aviation industry passed a new from other modes of transport, particularly sea-
milestone at the end of May when IATA announced freight, where the adoption of e-tools is often more
completion of its e-ticketing project – that is, the advanced than it is in airfreight. But he also thinks
complete phasing out of paper tickets for all airline there is a demographic factor. “A new generation of
passengers. young people is coming into the business for whom
This achievement underlined just how pervasive the doing things electronically comes naturally. They are
airlines’ use of the internet and other electronic tools the customers of tomorrow and they are going to
has become over the past seven years. Few travelers expect to be able to interact with carriers in this way.”
now think twice about booking an airplane ticket
online or checking in via the web.
INTEGRATE OR DISINTEGRATE
However, AF-KL Cargo’s goal of eliminating paper The strategy of AF-KL Cargo is to treat e-commerce
from its air cargo business lags well behind its as an integrated function, Mr. van Asch says. “E-
achievements for passengers. Yet the use of e-tools commerce used to be seen as a series of separate
is quietly growing. “Air cargo is still a very traditional projects, a matter for the IT department. But when
business, but e-commerce is becoming more and you bring them all together and see them as a single
more important,” says Eelco van Asch, AF-KL Cargo entity, that’s when you can really understand the
Vice President of Marketing, Communications & E- benefits.”
Commerce. “At AF-KL Cargo we are determined to
close the gap with the passenger business.” For example, IATA’s e-freight initiative to remove
paper documents from air cargo transport could be
© AF-KL Cargo
Mr. van Asch sees several drivers accelerating the linked to e-booking, so that data provided at the time
adoption of e-commerce. One is the high fuel price, of booking could be used to create an electronic air
which is driving companies to look at ways to improve waybill. A track and trace function could give the
efficiency and reduce costs. Another is competition customer a snapshot of the documents he has
16 cargovision | SEPTEMBER 08
cargovision 17
cargovision the importance of being connected
received electronically and those that are still needed. paper and stored in a forwarder’s office, workers
This approach has yet to be adopted, but it is defi- could not always find them quickly. Today, both are
nitely in the making, says Mr. van Asch. Better inte- available online. Rates are published through the AF-
gration may also increase its popularity among those KL Cargo website and the Inforwarding Air Freight
who are reluctant to abandon the phone and fax. The Rates service of OAG.
more they can do online, the more willing they will be
to switch.
IN- OR INTER-DEPENDENCE
Edwin Borst, Vice President of Customer Service for Mr. van Asch says that AF-KL Cargo currently
AF-KL Cargo, and another member of the e- receives 23% of its bookings online, a 10% increase
commerce team, says that the carrier now tries to in just the last year. These include bookings via EDI
bring a complete package of e-services into conver- message as well as by CPS or GF-X.
sations with its customers. “We try to point out that it
is not just about booking, but about other services Working patiently with individual customers is one
Edwin Borst: such as online schedules, claims processing, or track way AF-KL Cargo intends to increase the number of
“As with so many and trace.” e-bookings. However, Mr. Borst says, air cargo is a
other services, business-to-business environment and very different
the forwarder can from the business-to-consumer channels of the
do this one 24/7, TOOLS FOR SPEED passenger business. “In air cargo, there is the whole
at a time that The e-commerce team has recently made great chain to think about and a solution will only work
suits him” strides in bringing more services to the airline’s cargo effectively if it addresses all of the participants. After a
customers. It made a claims status tool available on passenger books online, he is finished. But a
the AF-KL Cargo website in June says Mr. Borst. forwarder may need to update his own system,
“Previously, claims processing could be held up by which quickly reduces the benefit of the electronic
minor misunderstandings. For example, if we ask a approach. That is why we have adopted the
forwarder for more information and the letter goes integrated approach for e-commerce.”
astray, he wonders why he has not heard from us and
we wonder why we have not heard from him.” IATA’s e-freight initiative to eliminate paper documents
Now, in an e-commerce environment, a forwarder from air cargo shows the interdependence of parties
would solve this problem by entering the air waybill in the supply chain. AF-KL Cargo participated in the
number and getting a current history of the claim. recently completed first phase, which involved five
“As with so many other services, the forwarder can countries including the Netherlands. The technology
do this one 24/7, at a time that suits him,” Mr. Borst was not challenging: e-freight uses EDI messages
says. “And we don’t need staff waiting to take and the Netherlands has a venerable cargo commu-
queries on the phone.” nity system that could accommodate them.
However, three of the 13 paper documents used in
Another new tool, a pre-claims notification, now elimi- the trial have no EDI equivalent: the packing list, the
nates an irritating administrative task for forwarders certificate of origin, and the invoice. Forwarders had
and carriers. Under the Montreal Convention, if a to scan each one, burdening their staff and their
forwarder intends to file a claim for a shipment, he has communications bandwidth.
to send the carrier a pre-claim notification within IATA is working with forwarders and others to create
24 hours of the shipment’s arrival. EDI versions for these messages and get shippers to
Eelco van Asch: Forwarders may now know whether a claim will arise provide the data electronically. Mr. van Asch reckons
“Air cargo is still a or not and may send a pre-claim just in case. “These that the simplicity of this new process will greatly
very traditional were traditionally submitted by fax,” Mr. Borst says. increase the use of e-freight. The need to pass data
business, but “The forwarder then rings up asking whether we along from one function to another is vital if the
e-commerce is received it. This is a big administrative headache for industry is to wean itself from its old habits and
becoming more and something that goes no further 99% of the time. With realize the benefits of e-commerce.
more important” the new tool, forwarders can now file a pre-claim
online and receive a confirmation number immedi- Mr. Borst agrees. “Once all the elements work
ately, saving everyone’s time.” together, companies will realize how wasteful it is to
Another example of how the internet is simplifying use expensive manpower for tasks that can be done
routine administrative tasks is the publishing of rates electronically. People should be freed for the complex
and schedules online. When they were printed on work that actually needs human intervention.” ■
18 cargovision | SEPTEMBER 08
cargovision people make a difference: Thomas Lesobre
HEAD CALCULATOR
Reducing an organization’s carbon dioxide emissions, the so-called ■ The starting point towards lowering emissions is to
carbon footprint, is moving swiftly up the strategic agenda of identify the current emission levels. In the case of AF-KL
companies around the world. AF-KL Cargo has its own experts in Cargo and its customers, that’s where Dr. Thomas
this field. Dr. Thomas Lesobre’s goal is to have AF-KL Cargo take up Lesobre and his colleague Ms. Monelle Sourdot come in.
the lead in sustainabe air transport. His role as the organization’s controlling director in charge
of network issues includes calculating the CO2 emission
BY PHILLIP HASTINGS levels of air cargo traffic so that management and
customers have access to reliable figures.
cargovision 19
© AF-KL Cargo
■ One of our main goals is to achieve comparable service for handling special products,” explains Francis
levels at Charles de Gaulle and Schiphol, says Mattijs Isidoro, who is responsible for quality, safety, environ-
ten Brink, AF-KL Cargo’s Vice President of Worldwide ment and regulations at AF-KL Cargo. “It will tell the
Operations. “But the infrastructure at the two hubs is staff and sub-contractors how to build and handle a
completely different. Charles de Gaulle is more mechanized pallet. For example, Air France and KLM used to
and with less opportunity in handling mixed pallets. More palletize luxury cars differently. However, KLM had
shipper-built pallets are moved at CDG than at Schiphol, developed special tools and procedures for this
and more freighters land in Paris, also.” process and now the Air France stations have
Nevertheless, Mr. ten Brink and his team have created one adopted them as well.”
quality management system, one safety and security
system and one audit system for both hubs. In addition,
they have aligned front and back office processes. REAL ALIGNMENT
“This allows our outstations, suppliers and customers to “Customers gain confidence in the AF-KL Cargo
benefit from consistency in our cargo products throughout product, because they know their cargo will be
the AF-KL Cargo organization.” handled in the same way wherever it is loaded or
cleared,” Mr. Isidoro continues. “For example, phar-
AF-KL Cargo published its first integrated handling manual in maceutical and perishable shipping customers can
July, detailing the operational procedures for its staff and see how we develop and operate our temperature-
sub-contractors when handling freight in both the Air France controlled services to ensure their requirements for
and KLM networks. “The manual also sets out the processes maintaining the cool chain are met.”
20 cargovision | SEPTEMBER 08
QUALITY OPEN WIDE
Cargo handling at Schiphol
will enter a new phase with
the addition of another
warehouse, scheduled to
open after 2012. The
BREEDS
13,000-m2 site will have
an unusual design for
handling cargo more
efficiently.
“We want to remove the
mechanization from cargo
handling,” says Mattijs ten
Brink. “We prefer to have
A key driver behind the merger of Air France Cargo and KLM Cargo was the
people build pallets, rather
desire to improve efficiency, flexibility and customer service in both organizations.
than machines, because
Achieving such a goal is never easy, but it is possible. While the operations
they can optimize them
at the two main hubs (Charles de Gaulle and Schiphol) are not integrated,
better and increase our
of course the best practices are shared and processes are being aligned.
payload. We will have good
BY MARCIA MACLEOD IT systems to guide the
process, but people will
make the final decision.
For that, they need to see
all of the cargo in the ware-
house and that means we
need a lot more room.”
cargovision 21
cargovision country files
Air France-KLM operates in 45 unique markets. Here we look at three of the lesser known though
fascinating places somewhat off the beaten track – hugely popular as tourist spots with great natural
beauty and each with its own colorful history.
Tahiti
NEED TO KNOW
■ Government: Tahiti is the largest
island in French Polynesia.
■ Population: 260,000 people
on 120 islands.
■ Capital city and major finan-
cial center: Papeete.
■ Language: French (the official
language), Polynesian, some
Asian languages.
■ Economy: About 25%
comprises tourism, plus pearl
farming and deep-sea fishing.
■ Trade: Exporting mainly to
France (46%) and Japan (20%),
© Eric Nathan/Image Select
importing from France (53%)
and Singapore (15%).
■ Exports: Cultured pearls,
coconut products, mother-of- ■ TAHITI
pearl, vanilla and shark meat.
■ Imports: Fuels, foodstuffs, “I have come to an unalterable decision – to go and
machinery and equipment. live forever in Polynesia. Then I can end my days in
■ Currency: Comptoirs Francais peace and freedom, without thoughts of tomorrow
du Pacifique francs (XPF). US$1 and this eternal struggle against idiots.” So said
© Anton Dijkgraaf/Hollandse Hoogte
is 75.42 XPF. renowned French artist Paul Gauguin, probably
Tahiti’s most famous import. The largest of the South
TRAVELER TIPS Pacific’s Society Islands at the eastern end of the Iles
■ Take light, casual clothing for du Vent (Windward Islands) group, Tahiti is controlled facilities and offices are controlled by one private
the balmy temperature. by France. It is a major tourism center, though it also company, SETIL, a French acronym meaning Tahiti
■ Shopping hours are Monday has substantial coconut and related products export Society for Equipment and the Islands.
to Friday 7.30 a.m.-11.30 a.m. industries. All flights carry passengers and cargo, as Major local industries include tuna fishing, pearls and
and 1.30 p.m. to 5 p.m./6 p.m., there is not enough traffic to justify using freighters. pearl shells, vanilla beans and local handicrafts,
and on. Saturdays 7.30 a.m.- though few local products are produced in sufficient
11.30 a.m. Competition is very tough, with government-owned quantities to be exported.
■ Power: voltage is 220 (60 local company Air Tahiti Nui – for which the main
cycles), and most hotels have Faa’a airport near the capital, Papeete, is the major Export items for air cargo largely comprise general
110-volt outlets as well. hub – setting prices. Last year’s total throughput cargo, personal effects, live animals (pets), items such
■ Tipping is not customary; it is (imports and exports) was 13,750 tons of freight and as aircraft engines for overhaul and repair, valuables
contrary to the Tahitian spirit of 870 tons of mail, of which Air Tahiti Nui carried 10,736 such as pearls, fresh tuna fish, aquarium fish, house-
hospitality. There are no sales tons and 4,444 tons respectively. AF-KL Cargo took hold goods, military materiel, mail and a few local
taxes or hidden service charges. 964 tons and 335 tons respectively. products such as vanilla beans and some handicrafts.
■ Public transport is cheap and One private ground handling company, Air Tahiti Inter-
reliable bus services known as national, looks after all passengers and cargo, with Imports by air include perishable foodstuffs, pharma-
“Le Truck.” Taxis are expensive. software linked to French Customs authorities. Local ceuticals, consolidated packages and spare parts.
22 cargovision | SEPTEMBER 08
Sint Maarten/Saint Martin
NEED TO KNOW
■ Government: the southern half
of the island is part of the
Netherlands Antilles, with repre-
sentatives in the main Antillean
government in Curacao.
The northern half is an overseas
French Collectivity.
■ Population: 77,000 (41,000 in
St Maarten, 36,000 in St Martin)
■ Capital city: Philipsburg for the
Dutch, Marigot for the French.
■ Language: French and Dutch
(both official languages), English,
French Patois, Spanish, Papia-
mento
■ Economy: Centers on tourism.
■ Imports: Food, luxury goods.
■ Currency: the Netherlands
© Hemis/Image Select
Antilles Florin (N.A.F.). US$1
equals approximately 1.80 N.A.F.
On the French side, the euro is
used – US$1 is 0.631 euro.
■ SAINT MARTIN
TRAVELER TIPS
A small Caribbean island split between Dutch and ■ Princess Juliana is the main
French administrations, Sint Maarten/Saint Martin airport and is on the Dutch
(depending on which part you’re visiting) is one of the (south) side of the island, while
fascinating leftovers from historical exploration, the French side’s Grand Case
discovery and conquest that speckle the world’s Airport is for flights to and from
oceans. Christopher Columbus saw it and claimed it other Caribbean islands.
for Spain, but never landed there. Spain took little ■ Dress code is mostly casual, in
interest in it, and the Dutch occupied it from 1631 as line with tropical temperatures.
a way station between South and North America. ■ Banks in Sint Maarten are
Spain booted the Dutch out in 1633, and was in turn generally open from 8:30 a.m. to
evicted by the Dutch in 1647 after a series of 1 p.m. and then 4 p.m.-5 p.m.
© Richard Cummins/Image Select
assaults and sieges. The remaining Dutch and from Monday to Thursday. In
French who had hidden on the island divided the Saint Martin they are open every
territory with official agreement, and their distinctive weekday from 2 p.m. to 5 p.m.
cultural influences are apparent even today. Beaches, dining, nightlife and shopping are the major ■ Electrical power varies. The
Fast forward to present times: the Dutch/French activities. Dutch side runs on 120 volts (60
cooperation continues and the tiny – 37 square miles With a short runway at the international airport, loads cycles) and the French side runs
– spot in the Leeward Islands is an immensely are limited on Boeing 747s, though for outbound on 220 volts (50 cycles).
popular holiday destination. It is also a well-known flights it doesn’t matter too much as there’s precious ■ In Sint Maarten, hotels add a
centre for yachts and luxury mega-yachts either little cargo to shift – personal belongings and the like, 15% service charge and 5%
passing through to the rest of the Caribbean or of which AF-KL Cargo moved about 200 tons last government tax to the final bill.
seeking a comfortable base. year. For arrivals, the beach by the airport is a In Saint Martin, the service
magnet for aircraft spotters because of spectacular charge is 10%-15%, plus a
There is virtually no manufacturing industry of any low approaches. visitor’s tax on rooms that varies
kind, so just about everything has to be imported, up to 5%.
meaning opportunities for air cargo operators to Two private ground-handling companies deal with all ■ Local public transport is by
bring in foodstuffs and high value items to feed the freight via a cargo area at the airport, and there are unscheduled minibuses. Most
demands of the luxury hotel and shopping trades. no customs formalities or duty payable. visitors rent cars.
cargovision 23
cargovision country files
New Caledonia
NEED TO KNOW
■ Government: is an overseas
territory of France.
■ Population: 224,824 (July
2008 est.).
■ Capital city and major
financial centre: Noumea.
■ Languages: French (the
official language), 33 Polynesian
dialects
■ Economy: 25% of the world’s
nickel deposits. Tourism plus
financial support from France
make up the rest.
■ Exports: Nickel ore and
products, fish.
■ Imports: Food (about 20%
of total imports)
■ Currency: Comptoirs Francais
du Pacifique francs (XPF). US$1
is 75.42 XPF.
Jean Marie Tjibaon Cultural Centre, Noumea © Arcaid/Image Select TRAVELER TIPS
■ The warm season is from
September to March, with
■ NEW CALEDONIA average temperatures of 77-80
degrees F (25-27 degrees C),
Outstanding natural beauty characterizes New with most rainfall in Jan-Mar.
Caledonia, situated east of Australia in the Melane- ■ Public bus services run on
sian region of the southwestern Pacific. Tourism is various routes within Noumea
a major industry, though the mainstays of the from morning to early evening.
economy are nickel mining and refining plus major There are also buses running
financial support from France. The AF-KL Cargo between towns. Car hire is
connection is via Osaka, Tokyo and Seoul to or reasonably priced.
from flights operated by Air Calédonie International ■ There is no tipping, though if
(Aircalin), which runs two Airbus 330s, an 320 and you round up a bill or leave
a Twin Otter. The Airbus fleet operates the major some change, it probably will
international routes between Tontouta © Oxford Scientific/Hollandse Hoogte not be refused.
International Airport, about 30 miles outside the ■ Electric power is 220 volts
capital city, Nouméa, and Japan, Australia and (50 cycles).
New Zealand. Domestic flights run from Magenta dwell time for cargo is said to be acceptable, ■ If you go for a swim at a
Airport in Nouméa. though the airport Customs office closes at 3 p.m. beach, beware of yellow-
There is no clearance during weekends, except for banded sea snakes
The airline moves about 5,000 tons of cargo a year, agents that have received special dispensation. (Tricots Rayes).
about 70% of all New Caledonia’s airfreight. All ■ Shops are open Monday-
handling is done at the airport, about 35 minutes Though New Caledonia is French territory, duties Friday 7:30 a.m.-11 a.m. and
from Noumea, the capital city. There is only one and taxes are applied for imports from Europe. 2 p.m.-6 p.m., and on Saturdays
handling company, Tontouta Air. Aircalin is the only This does not seem to be an obstacle to the devel- from 7:30 a.m.-11 a.m.
carrier to accept cargo downtown. opment of the air cargo industry, which as might be Sources: CIA – The World Fact-
expected moves mostly exports of general cargo, book, local government Web
For customs clearance, everyone uses Sydonia personal effects and seafood, while imports consist sites, Official and commercial
software, which does not allow pre-clearing. The mostly of foodstuffs, electronics and luxury goods. Web sites.
24 cargovision | SEPTEMBER 08
Forwarders and shippers have been asking AF-KL Cargo to come up with a more stable and
predictable method of determining fuel surcharges.
BY MARK LYON
FUEL SURCHARGE
OVERHAUL
■ AF-KL Cargo introduced a new fuel surcharge mecha- hours flown. The mechanism has three zones that use a multiplication
nism on September 1. Beginning on that date, the fuel factor of 1.0 for flights over 9h, 0.8 for flights of 4h to 9h and 0.5 for
surcharge is based on the US-dollar price of jet fuel and the flights under 4h.
duration of the flight. On September 1, the day we switched The goal of balancing fuel surcharges for all markets, currencies and
to the new mechanism, everyone paid exactly the same flight distances, so that everyone paid the same invoice amount on
invoice amount as he paid under the old system. September 1 as paid on August 31, required a one-time adjustment to
We calculated all subsequent changes in the fuel surcharge some airfreight rates. In those instances, the correction left the total
with the new mechanism, which corrects some basic invoice price unchanged but increased the airfreight rate and reduced
flaws found in previous methods. the fuel surcharge by the same amount. All subsequent changes in
Existing formulas calculate fuel surcharges based on the the surcharge will proceed from the new adjusted value.
price of oil in 1996. They do not include provisions for
moving exchange rates or distances flown. By definition, The new surcharge calculation is straightforward. If jet fuel increases
a surcharge is an extraordinary item that should be propor- US$60 per ton, the surcharge goes up US$0.10. Multiply that
tional to an extraordinary cost while an airfreight rate should US$0.10 increase by the distance factor for the shipment to find the
reflect market demand. Yet, we see surcharge calculations surcharge adjustment per kilogram. If necessary, multiply that result by
that price oil at US$17/bbl when crude sells today for the currency exchange rate to find the surcharge adjustment in local
US$120/bbl. Combined with escalating euro-dollar currency. Add the adjustment to the existing surcharge to find the new
exchange rates, this causes customers in Europe, for surcharge.
example, to receive airfreight invoices containing 90% fuel Introducing any new methodology asks for changes to current prac-
surcharges and 10% rates. tices. We would like to thank our customers for their cooperation and
Forwarders and shippers have been asking us for some effort in making this work. AF-KL Cargo trusts that you will understand
time to come up with a more up-to-date method of deter- and value the transparency of this new mechanism. We hope that it
mining surcharges, one that is more stable, predictable and may even bring a beneficial change to the airfreight industry. ■
includes adjustments for flight distances and exchange
rates. After consulting fuel experts and customers, AF-KL
Cargo has created a new mechanism that incorporates
those requests.
cargovision 25
Fleet planning is tricky, even without the additional complication of introducing a new aircraft,
like the Boeing 777 freighter. Add high fuel prices to the equation and you have constantly changing
imperatives for network planners.
BY TONY CARDING
ASSET
SHUFFLE
■ In October, the first Boeing 777 freighter is to BALANCED EQUATION
come off the line at Boeing’s plant in Everett to join One of the operational issues that network planners
the AF-KL Cargo network. Although it will join must keep in mind is the different payload range and
passenger versions of the Triple-Seven already in the fuel consumption for each type of aircraft, Mr. de
Air France fleet, smooth integration requires much Jong adds. Different aircraft types are more suited
forethought.With a maximum takeoff weight of for certain ranges and flying times: “There are new
766,000 lb (347,450 kg), the Boeing 777 freighter optimal ranges to be defined for different aircraft
offers a revenue payload capacity of 226,000 lb types and that is an extremely interesting issue we
(103 tons). According to Boeing, the aircraft will also currently have on the table.”
be capable of flying 4,885 nmi with a full payload Henjo Grisnigt, the AF-KL Cargo Director of Network
and general cargo market densities. Planning for the AMS network, agrees that there
Arend de Jong: are some complexities with the new Boeing 777
“The 777 has an Arend de Jong, AF-KL Cargo Senior Vice President freighter, but its greater fuel efficiency creates many
enormous payload for Marketing & Network, says that while Air France opportunities. “We can serve a portfolio of destina-
range and is also already operates 51 Boeing 777 passenger aircraft, tions that will make a profitable route, whereas we
a very efficient planners must accommodate specifics unique to the could not do that with our Boeing 747-200 freighter.
aircraft in terms freighter version, including weight and balance On the other hand, the new aircraft has a different
of fuel” concerns. “Commercially, the aircraft is replacing the payload and shape, which adds complexity. We
747s. The 777 has an enormous payload range and need special pallets and building them is not the
is also a very efficient aircraft in terms of fuel. same as building ones for the 747. It is simply
However, it has a bit less maximum payload than a another issue we must consider as the launch
747, so we must involve network, marketing, sales customer, and it will be one of the challenges.”
and almost every other discipline in our company to And nobody is overlooking the high price of fuel.
see where it fits best.” It may reduce belly capacity in some markets or
26 cargovision | SEPTEMBER 08
The Boeing company unveils the new 777 freighter © Boeing
tempt planners to cancel freighter flights with small depend on the aircraft type, but also on the way it
or negative margins if the route is also covered by is operated. A freighter fleet within a global carrier
passenger flights. They will certainly try to avoid filling can benefit from the commonality in maintenance,
up at stations where fuel is expensive, for example engineering and crews when the airline operates
in West Africa and Central Asia. the same type of aircraft in a passenger version.”
As the Boeing 777 freighters replace Boeing 747-
200 freighters at Charles de Gaulle, they bring “Managing a freighter fleet composed of several
greater efficiency. “Planners really begin to focus on sub-types limits an airline’s ability to perform well,”
defendable markets, where they see competitors Mr. Duval continues. “It represents additional costs
already falling by the wayside,” Mr. Grisnigt says. and increased risks for our customers’ service
“We expect the high fuel prices to shake up the quality. Therefore, we focus on one aircraft type
industry. As we are No. 1 in terms of network and that best fits the network design.”
service possibilities for the forwarder, we expect to However, life is not perfect, Mr. Duval says. Phasing
survive, even though the margins are under tremen- in the Boeining 777 freighter will require a temporary
dous pressure.” period of managing three sub-fleets, along with two
separate crews and two different pallet shapes.
“This is a necessary intermediate step, a bridge to
UPSIDE POTENTIAL move to a new fleet, and it is really an interesting
Still, no freighter is universally suited to all routes, challenge. We believe that the fuel savings and the
says Bruno Duval, Vice President of the CDG crew and maintenance synergies with the passenger
network for AF-KL Cargo and Vice President of Fleet fleet will eventually mean that our fleet composition
Planning & Scheduling for Air France. “Each type of gives us the best reactivity and flexibility to meet
aircraft performs best according to three factors: our customers’ needs for the immediate and long-
payload, range and fuel burn. Capacity costs range future.” ■
cargovision 27
cargovision market monitor
0%
-2%
Apr ‘05 Jul ‘05 Oct ‘05 Jan ‘06 Apr ‘06 Jul ‘06 Oct ‘06 Jan ‘07 Apr ‘07 Jul ‘07 Oct ‘07 Jan ‘08 Apr ‘08
0%
-5%
-10%
9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7
198 199 199 199 199 199 199 199 199 199 199 200 200 200 200 200 200 200 200
50
0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7
199 199 199 199 199 199 199 199 199 199 200 200 200 200 200 200 200 200
28 cargovision | SEPTEMBER 08
GROWTH? The amount of air cargo carried in passenger bellies compared to
freighters has grown over the past two years. Dick van den Berg,
our in-house analyst, looks at the trends and their causes.
10%
0%
9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7
198 199 199 199 199 199 199 199 199 199 199 200 200 200 200 200 200 200 200
1000
500
0
0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7
199 199 199 199 199 199 199 199 199 199 200 200 200 200 200 200 200 200
Etihad Airways
Lufthansa, have expanded their fleets, as have six of the major
Saudi Arabian Asian carriers. The presence of four Gulf carriers in this group of 15
© Olé ontwerpers
Air China airlines is striking: the accounted for 40% of the wide-body aircraft
Singapore Airlines added by this group.
China Airlines
EVA Airways
American Airlines
Thai Airways
A NEW WRINKLE
■ Researchers have known for a decade that
dolphins go faster by wrinkling their skin to stop
water molecules from clinging to it, creating
turbulence that slows them down. More
recently, engineers at Texas A&M University
applied this knowledge to reduce skin friction
drag in a laboratory experiment by half. Using
electric fields to corrugate a skin’s surface at a
specific wavelength and amplitude, they were
able to calm the chaotic flow of the fluid moving
over it. Because the amount of deformation
required to calm the waves varies with the
velocity of the fluid, they have now set to work
creating a smart skin that uses active materials
to change shape and reduce drag during real-
istic flight conditions. Lower drag can reduce
aircraft fuel consumption along with its associ-
ated economic and environmental conse-
quences, increase flight range and endurance,
and achieve higher speeds.
A CONTENDA
■ The 46-year-old whistleblower Mark Oehm
received US$3.3 million for telling the US
WORLD’S SMALLEST SHIPMENT
government that his former employer, National
Air Cargo, a freight forwarder located in ■ Other researchers in Spain, Austria and Switzerland have built a
Orchard Park, NY, did, among other misrepre- nanoscale monorail that recently moved its first load: a gold nugget 250
sentations, routinely ship US Department of nanometers wide that was carried for a distance of 500 nanometers.
Defense goods by truck, but billed them for Observers recorded the event through an atomic force microscope.
more expensive airfreight. Mr. Oehm, who The so-called nano-freighter was heralded as a good first step towards
worked for National from 1996 to 2001, was making nanotransport a reality. We wonder how long before someone
the key government witness in the over-billing develops nanoscale logistics and bills customers for breaking down items
case, which resulted in a US$28 million into their molecular parts, transporting them to another site, and reassem-
settlement in Buffalo’s federal court. bling them into a whole. Beam me up, Scottie, but what’s the fare?
30 cargovision | SEPTEMBER 08
cargovision information
cargovision
PARTNERS IN SINE
Cargovision is the management magazine of AF-KL Cargo.
■ Using X-rays to show objects inside a container
Its function is to disseminate information on transport,
is simple. Using them to identify the composition of distribution, logistics, information services, and general
materials inside is hard. Designers at Nuctech Co business developments. The editorial opinions expressed
Ltd., a company that was spun off from Beijing's in the magazine are not necessarily those of Air France KLM.
Tsinghua University to research and develop X-ray Reproduction in whole or in part without written permission
scanning technology, built the prototype of an is prohibited.
advanced scanner in December 2005. The
machine sent X-ray pulses of interlaced high and
low energy beams into a container.
SUBSCRIBER SERVICES
Afterward, it combined the two scans with a
sophisticated fusing algorithm and showed images Cargovision is published quarterly by AF-KL Cargo
with excellent discrimination between organic and and mailed to subscribers in almost every country.
inorganic materials. Other algorithms enabled it to
show objects hidden behind heavy metals. Mean- Please visit www.cargovision.org
while, Australia's Commonwealth Scientific and and click on the subscribe icon.
Industrial Research Organization began testing its You will be able to:
own scanner prototype at Brisbane Airport in 2006.
The CSIRO machine did not use X-rays. Instead, ■ Sign up for a free subscription
it collected scans of a gamma ray and neutron ■ Change your address
cargovision
beams to build its composite images. Not long after ■ Cancel your subscription
CSIRO completed the Brisbane trials in 2007, the ■ Review recent editions
company agreed with Nuctech to collaborate in
developing a new scanner that would incorporate
CSIRO's neutron technology and Nuctech's X-ray
systems. The two firms are now building the proto- HIGHER
type in Beijing. They expect the production designs EVOLUTIN
to integrate easily with existing airport systems and
keep freight moving rapidly. Scanning an airfreight
container should take less than a minute.
In August 2008, the scanner won the CSIRO
Medal for Research Achievement.
cargovision 31