BFS Cargo E-Newsletter Vol.6/2015

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1 Vol. 6/2015 Handling with CARE Customer Attentive Responsive Efficient Dear Friends, Welcome to the June edition of the BFS Cargo E-Newsletter. One of the aims of this Newsletter is to let you all know some of the things that are happening globally in this Industry that you otherwise may not be aware of. As WFS is a Global company we are able to stay aware of the entire business. I also use my personal contacts with IATA and other Industry Associations to stay current with Global changes and challenges we face in the years ahead. David Ambridge General Manager - Cargo One of the aims of this Newsletter is to let you all know some of the things that are happening globally in this Industry A couple of those initiatives are ACAS and PRECISE. Both of these Security initiatives are aimed at better protecting the USA and the EU by the use of ADVANCED CARGO INFORMATION. Both Continents see this as crucial to their future Security and they will both require Advanced Electronic Information before Cargo is loaded. This is very different to today where this same information is only required prior to arrival. It s very important that Shippers and Agents here in BKK become aware of this change and prepare for it now. Currently there are none of you providing Advanced Information prior to delivering Export Shipments into BFS. Why is that? You are all able to provide this same information to Customs to get the Export Declaration but not able to share that same information with BFS. I think this goes back to a decades old procedure where Airlines would only accept weights from the Cargo Terminals. Please understand that this will have to change if you expect Cargo to be loaded in time for the flights in future. Without the advanced information BFS will not be able to send the required message to the USA and EU to get PERMISSION TO LOAD. Without that Cargo will not fly. For those of you without IT Systems please be aware that there are many Web Portal providers, like WIN, TIFFA EDI, TRAXON, DESCARTES, and many more who can help you with this. The earlier adoption of E-AWB can also solve this issue and for those of you still unsure about this please just contact me for further assistance. I attended the IATA E-Cargo Conference in Geneva last week and we heard time and again from Shippers that the Air Cargo Industry has to change. Customers want greater visibility of information as standard. This is only possible if we all use Electronic information and make that same information available to the Customers when they want it, rather than we give it to them. This will require all of us to change and share information earlier and make it readily available using CLOUD based technology. Shippers have said that if we do not change and provide this they will continue to move their valuable business to other Transport modes. We really cannot afford for this to happen so change is needed and it is needed now. Not next year of the year after, but right now.

2 One of the first issues that I know will come into your minds here in Bangkok is well what happens if I deliver cargo to BFS and I have already submitted data or a Paper AWB and the weight is different? Well that s an easy one to answer I think. Amending electronic data is much easier than physically changing a Paper AWB that has already been produced. With good, and reliable, information from the Shipper I see the likelihood of changes in the 1-5% range. This, for me, is not a good enough reason not to change and try this new way of working. We would really like to trial this with some Agents and some Airlines who can clearly see the benefit of this changed method. Yes change can be scary but I know that if we sit together, collaborate, and communicate, then we can succeed. We have to change because the Regulators will tell us to so I think it s much better if we change now so we are fully prepared when the day comes and we have no other options. Let s work through each problem together and make sure that Thailand is ready for these new challenges. Please either contact me directly or your Customer Care Manager for further information and assistance. BFS has been working very closely with the FZO to solve the traffic issues. From June 1 st a new system is now in place and the early signs are very positive. The CCM s will be contacting their assigned Agents to get feedback, good or bad, on this project. Another Airline will move to BFS on July 1 st and this will be formally announced in the next issue. Please enjoy this month s edition Regards, David Ambridge General Manager Bangkok Flight Services Cargo (WFS affiliate)

3 FWB/FHL Data Requirements John Yep Director Cargo Service Delivery Local customs of many countries including Thailand require electronic FWB/FHL data information on all Import cargo arriving into the country prior to aircraft arrival. Airlines require BFS cargo to send 100% FWB/FHL data information on all Export cargo and similarly Airline original stations must send FWB/FHL data information on all IMPORT cargo into Thailand. Both FWB and FHL messages are required by Thai Customs, FWB is for Master Airways bill level (Direct shipment) and FHL message is for House Airway bill level (CONSOL shipment). Without these inbound messages from originated station, the customer will not be able to proceed Customs clearance at BKK. Origin stations must follow the recommended IATA CIMP FWB/FHL formats: FWB/ BKKHKG/T10K1000 RTG/HKGCX SHP /BFS ACCEPTANCE /SUVARNABHUMI AIRPORT /SAMUT PRAKAN /TH/10540 CNE /BFS ACCEPTANCE /SUVARNABHUMI AIRPORT /SAMUT PRAKAN /TH/10540 AGT// /BFS ACCEPTANCE /SAMUT PRAKAN CVD/THB/PP/PP/NVD/NCV/XXX RTD/1/P10/K1000/CQ/W1200/R1.32/T /NC/CONSOL /2/ND//NDA PPD/WT /CT ISU/21MAY15/BKK REF/BKKFFXH FHL/4 MBI/ BKKHKG/T10K1000 HBS/BKK123456/BKKHKG/10/K1000.0//HDD TXT/CNENAME2-BFS ACCEPTANCE /SHPNAME2-BFS ACCEPTANCE SHP/BFS ACCEPTANCE /SUVARNABHUMI AIRPORT /SAMUT PRAKAN /TH/10540 CNE/BFS ACCEPTANCE /SUVARNABHUMI AIRPORT /SAMUT PRAKAN /TH/10540 CVD/THB/PP/NVD/NCV/XXX

4 In addition to delayed release of cargo, FWB/FHL data must be available to Customs ATA +48.0hrs or a THB 1,000 penalty will be levied against the agent/consignee. As a convenience, BFS Cargo will input Import cargo FWB/FHL data on behalf of the Airlines for a nominal fee, however, we would rather prefer all Airlines to follow proper FWB/FHL requirements. If you should have any further questions on this local Royal Thai custom requirements, please contact one of my CCMs: CCMs CargoCustomerCare@BFSAsia.com Tel: Ext , 5523, 5625 John Yep Director Cargo Service Delivery Bangkok Flight Services- Cargo

5 BFS Cargo Update AOT Meeting on Traffic in front of BFS Cargo Terminal After expressing our concerns to AOT/FZ on the vehicle traffic jam and illegally parked vehicles inside the FZ in previous meetings, a meeting was held recently by AOT on a possible solution of these issues, below are the details: AOT arranged the meeting to discuss on traffic jam in front of BFS Cargo Terminal as well as the solution to resolve this problem. It came to the conclusion that the traffic will be controlled by using 3 separated cards for all cargo, which this process will be implemented on 1st June 2015, 06:00AM onwards. Three color cards will be separated for Import, Export and Express (FedEx/DHL/TNT) For Import pick up at Door 1-9 For Export delivered at Door For Express (FedEx/DHL/TNT)

6 In addition, the meeting focused on mainly issues as follows; 1. Customs and OGA vehicles will not be allowed to park in front of Cargo Terminal anymore. 2. Export trucks will be allowed to get in once theirs booking are shown in FBL (Freight Booking List). 3. Import trucks will be allowed to get in once they have already contacted BFS Import Delivery team and their queuing are already issued. 4. Any person or truck which is not related to tendering or picking up the consignments will not be allowed to get into this area. BFS Cargo looks forward to working closely with AOT/FZ personnel on improving the vehicle flow and efficiency of all customers who are involved with immediate tender/pick up of their Import/Export cargo shipments. Customer Care Team

7 BFS handled Charter Flight Air Bridge Cargo On 25th May 2015, BFS handled Charter flight Air Bridge Cargo, RU9556 which was operated with B Freighter from AMS to BKK. Total cargo was 20 pieces with more than 50 tons. A big challenge is to handle 15-meter pipes onboard which BFS was recommended by the Airport of Thailand (AOT) to perform unloading activity after midnight with the reason of safety and to avoid any traffic blocking around cargo tarmac & area nearby. With the great support of Airport authorities concerned, well trained & experienced of BFS Ramp and Cargo team, all pieces were unloaded and delivered to customer smoothly without any problem. BFS thanks Air Bridge Cargo/VOLGA DNEPR AIRLINES to trust BFS to handle their cargo and appreciate great support from all related parties.

8 Latest News BFS Congratulated the New President of Airports of Thailand On Friday 15, May 2015, Mr. Stewart Sinclair, Managing Director and Ms.Somruthai Prasarttongosoth, Director, Bangkok Flight Services (BFS) congratulated Mr. Nitinai Sirismatthakarn on his new position as the President of Airports of Thailand at AOT s Head Office.

9 BFS Congratulated the New General Manager of Suvarnabhumi Airport On Tuesday 12 May 2015, Directors of Bangkok Flight Services (BFS) led by Mr. Stewart Sinclair, Managing Director congratulated Mr. Sirote Duangratana, the new General Manager of Suvarnabhumi Airport on his new position at Airport Operations Building (AOB). The former position of Mr. Sirote Duangratana was Senior Advisor 11.

10 News Air freight trailing in hi-tech revolution, despite the renewed calls for change By Alex Lennane The air cargo industry continues to lag in technology and data sharing, according to disappointing IATA figures. For the second month in a row, the global penetration of e-awbs has fallen. To reach IATA s target of 45% penetration by the end of the year, there must be about 2% growth per month. Yet it fell 0.7%, month on month, in March and 0.3% in April. The news came as IATA ended its e-cargo and technology conference, at which the industry was urged to bring about change quickly. The key take-away message was that the industry needs to accelerate the transformation process, and we need disruptive innovation and change management to make this happen, said IATA in a statement. Delegates renewed the pledge to drive e-awb and Cargo-XML, but also identified the urgent need for air cargo to transform the way it manages and shares information. This means building a new network of interconnected, and interoperable, data platforms to manage core industry processes. An evolution has started, however it will require more leadership and collaboration across the entire industry. Co-operation is key, according to Luc Scheidel, commercial director for Amsterdam s Cargonaut system. Using technology that is already available in the passenger business and other modes of transport will have a big impact in air cargo. In an era where staff use Facebook and Twitter at home, the introduction of already available technology at work will optimise processes. Cargonaut believes that these opportunities can be realised, provided all parties are willing to co-operate. Despite the fall in penetration, March volumes rose to the highest growth in the last 12 months, with the usual suspects of Cathay Pacific, Emirates and Air France-KLM leading the way.

11 One study has revealed the benefits eawbs can bring to the industry. Dnata City, at LHR, noted that significant truck dwell times could be cut when eawbs and the Electronic Consignment Security Declaration (e-csd) were used. Over one month, the handler saw the average time spent between a truck arriving at the gatehouse and the start of the cargo being offloaded halved, to nine minutes if e-awb data had been sent in advance, while another two minutes were saved if e-csd data was sent before the truck arrived. While most companies are aware of the advantages, some still find that they do not have sufficient resources to prioritise e-freight. One executive from a medium-sized company admitted: While I appreciate it is quite high profile, we don t see any immediate pressure from carriers to convert and conform perhaps because few of them are ready themselves? With a finite amount of IT resource, we are focusing this on the client and their experience, rather than e-freight. Obviously if we had to do it tomorrow to operate the business we would have no choice, but I just don t see the pressure currently. He added, however, that it is inevitable at some point. IATA is now considering how it can support smaller companies, and is eyeing the launch of a cheap and simple IT product news that has not been greeted warmly by the increasingly competitive IT industry.

12 E-Freight Champion Calls for Paradigm Shift in Technology and a Manifesto for Change John DeBenedette, Managing Director (MD) of online platform for independent forwarders, WIN, has challenged air freight bosses to urgently adopt a technology manifesto for change Geneva, Switzerland, Wednesday 3 rd of May The air cargo industry must abandon inefficient, expensive, out-of-date technology in favor of web-based solutions and embrace e-freight, according to John DeBenedette, MD of WIN. Speaking at IATA s e-cargo Conference and Workshop in Geneva, Switzerland, today, he called on all air freight stakeholders to embrace a technology manifesto for change and bring the industry into the 21st century. We need disruptive innovation, to look to common platforms accessed by the web, said DeBenedette. If we continue relying on 1990s solutions, e-freight adoption is going to take forever. E-collaboration is powering modern business everywhere, the likes of Amazon are booming, the technology is less expensive, more reliable, and more secure. We have to move away from saving and forwarding messages, we need a paradigm shift here and now. DeBenedette said the air cargo community must work towards adopting common platforms accessed by the web, agree to move away from store and forward messaging, and collaborate to explore new technologies and business models for inter-operability. Let s call it a technology manifesto for change, he said. We need to agree on this and move the industry forward and we need to do it now.

13 Total Airline Mishandling in May 2015 MAWB Mishandling Achieve (%) 23, % Tonnage handled by BFS in May and from January to May 2015 May 2015 January May 2015 (Cumulative) Service Types Tonnage Year-on-Year Tonnage Year-on-Year (KGs) Growth (KGs) Growth Export 16,077,099-5% 72,264,332-5% Import 10,220,544 10% 49,616,194 10% Transshipment 3,272,034 12% 16,313,897-9% Total 29,569,677 1% 138,194,423-1% BFS Cargo Contact Tel: +66 (0) Fax: +66 (0) CargoCustomerCare@BFSAsia.com