GROUND HANDLING AGENTS
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1 GROUND HANDLING AGENTS
2 Chairman s Opening Remarks Chris Notter, Head of Cargo Handlıng/Hub and Network, Etihad Airways
3 e-awb Mandate. What will it Change? Angel Cabeza Rivas, Head of Network & Product Development, Iberia Cargo
4 IBERIA e-awb VISION IATA World Cargo Symposium, Istanbul, March 9th, 2011
5 AGENDA 1. IB vision on e-awb 2. The solution 3. The Status 4. What's next
6 IBERIA e-awb VISION The AWB is the common document for all shipments Let s Make it HISTORY! Benefits & Shipments efreight eawb Now Number of Documents & Complexity
7 THE SOLUTION IBERIA eawb KEY SUCCESS ELEMENTS Spanish Customs Support IATA RP1670 full endorsment as IB eawb standard Agreement ebusiness HelpDesk: eawb & efreight are MAJOR changes for all participants IT Systems readiness: iberia-cargo.com & TRAXON GLOBAL CCS Forwarders & IBERIA Top Management willingness to embrace this initiative and get eawb benefits in early stages
8 IBERIA e-freight & e-awb STATUS IBERIA as part of the IATA eawb Working Group support the IATA RP 1670, and takes it as the Standard IB eawb Agreement More than 10 with Global & Local Forwarders from Spain, Colombia, Germany have already signed with IB eawb Agreement Other 2 Global and 8 Local Forwarders to join during 2011
9 01/02/ /03/ /04/ /05/ /06/ /07/ /08/ /09/ /10/ /11/ /12/ /01/ /02/ /03/ /04/ /05/ /06/ /07/ /08/ /09/ /10/ /11/ /12/ /01/ /02/ /03/ /04/ /05/ /06/ /07/ /08/ /09/ /10/ /11/2010 Coloque campos de página aquí Total IBERIA e-freight & e-awb STATUS Over efreight (eawb) shipments each month and growing Cuenta de Nº AWB 3000 e-awb CAGR : +65% % eawb by origin MAD: 19% Total SPAIN: 12% NETWORK: 5% Coloque campos de serie aquí 500 0
10 IBERIA e-freight & e-awb STATUS IATA MIP, Dec 2010 IBERIA 5th Airline in the World & 1st European Airline
11 WHATS NEXT? 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! ALL WE NEED IS A FIRMLY SUPPORT FROM INTERNATIONAL CUSTOMS Legal framework is favourable with MP4/MC99, and the eawb Agreement defined
12 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.
13 What has changed From over landing the to last take-off: 18 months, and how We does care! it impact the future? John Batten EVP Global Cargo Swissport : Ground Handling : Cargo : Fueling : Executive Aviation : Aircraft Maintenance : Aviation Security IATA World Cargo Symposium, Istanbul, 10th March 2011
14 INDUSTRY MADE MONEY IN 2010 but still a net loss overall 20 NPT Profit* Global Commercial Aviation Industry in $b From landing to take-off: We care! : Ground Handling : Cargo : Fueling : Executive Aviation : Aircraft Maintenance : Aviation Security F * Net post-tax profit Source = IATA
15 PROGRESS IN LAST 18 MONTHS? Not enough. Isolated pockets of activity From landing to take-off: We care! : Ground Handling : Cargo : Fueling : Executive Aviation : Aircraft Maintenance : Aviation Security
16 CARGO 3000 (or still 2000?) Project initiated in 1997 From landing to take-off: Phase 1 incomplete / Phase 2 incomplete / Phase 3 even possible? Main obstacles: We care! : Ground Handling : Cargo Deviation from the original Master Operating Plan (MOP) : Fueling Different application of the business rules / definitions Different priorities of members : Executive Aviation : Aircraft Maintenance : Aviation Security 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!
17 e-freight why the slow take up? Project initiated in 2006 From landing to take-off: % of all international shipments were e-freight. In 2010 this increased to 0.3%. Low penetration. Why? Main obstacles: We care! : Ground Handling : Cargo Savings in time and cost are not always achieved : Fueling in reality. Same : Executive Aviation flight, same clearance time. No benefit : Aircraft Maintenance 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 : Aviation Security Poor discipline with regard to messaging e.g. FWB Time to tackle the obstacles in order to turn paper into reality?
18 SECURITY globally aligned? Many different standards TSA, EU No global alignment. From landing to take-off: We care! No direct engagement with GHA : Ground Handling : Cargo State regulations vary e.g. RASCO is approved : Fueling in FR as primary method of screening, whilst only secondary in UK : Executive Aviation : Aircraft Maintenance Adoption of known shipper concept varies in its specifications and application : Aviation Security
19 INFRASTRUCTURE is cargo the ugly duckling? Airports prefer to invest in glamorous passenger facilities. Cardboard boxes don t spend money From landing to take-off: See the growth that occurs when investment is made Flower market DXB We care! : Ground Handling : Cargo HKG Achieved world s highest air cargo volume in 2010 : Fueling Regional, for example EU: Road Cargo continues : Executive to gain Aviation attractiveness : Aircraft Maintenance versus Air Cargo for intra-continental shipments due: : Aviation Security 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
20 Information Technology no shortage of it but seamlessly aligned? There are tens of different cargo handling systems in use From landing to take-off: All manage to communicate reasonably well through Freight Status Update (FSU) messaging, but different versions are in use We care! : Ground Handling : Cargo : Fueling Internet offers huge potential for seamless communication : Executive Aviation Take up of XML format is not mandatory, nor are there fixed : Aviation Security deadlines for compliance : Aircraft Maintenance As an industry we do not capture many of the possible benefits that IT can bring
21 CUSTOMS globally different Not aligned. Not just globally or regionally, even cities like Moscow have different customs authorities From landing to take-off: Bureaucracy still exists in many locations We care! : Ground Handling : Cargo Dwell times remain too high. A shipment can be 8 hours en-route and : Fueling then another 72 hours clearing Customs. : Executive Aviation IT can offer a partial solution, but the rest needs : Aircraft industry Maintenance engagement : Aviation Security and lobbying. WE need to offer Customs solutions that save them time and cost, whilst at the same time making borders even more secure.
22 THE ROLE OF IATA cannot act in isolation Encouraged to see the new collaboration between IATA, FIATA, TIACA (GACAG), but where is the GHA? From landing to take-off: The GHA needs more involvement, we can help We care! : Ground Handling : Cargo Should we form a GHA Association? Let us be Drivers instead : Fueling of Passengers? : Executive Aviation IATA still seen as looking after the needs of airlines. : Aircraft A Maintenance more : Aviation Security holistic approach is required. GACAG just the start but a good one nevertheless
23 SWISSPORT IS NOT SLEEPING. building upon 2010 Our Initiatives: From landing to take-off: Customer focus: CRM, product development, Customer Feedback, Continuous Improvement. Engage, Listen, Act, Review We care! Quality improvement: Measurement by KPI, C2K Station Certification, SLA s : Ground Handling : Cargo Performance optimisation: 5S, IT upgrades, Facility re-engineering Standardisation: Swissport Formula, Process Mapping : Fueling : Executive Aviation : Aircraft Maintenance Training: Invest in people, retain and develop good people, deliver better quality to our Customers : Aviation Security Engagement, engagement, engagement! With our Customers, and our Customers Customers With our Management, Staff, and Suppliers
24 SO WE NEED GREATER INTERACTION AND ENGAGEMENT" From landing to take-off: We care! : Ground Handling : Cargo : Fueling : Executive Aviation : Aircraft Maintenance : Aviation Security
25 THANK YOU From landing to take-off: We John care! Batten : Ground Handling : Cargo John.batten@swissport.com : Fueling : Executive Aviation : Aircraft Maintenance : Aviation Security
26 Networking Coffee Break Sponsored by: 26
27 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
28 Improving Global Supply Chain Synchronisation and Agility - ARE WE ON THE TRACK? IATA World Cargo Symposium th March Istanbul P. Balasubramanian (Bala) Manager Cargo Global Operations Services Emirates Airline
29 Setting the tone Quality Standardization Simplification TECHNOLOGY
30 Our job was as historians would say Moving PACKAGE Moving DOCUMENT Moving INFORMATION
31 Rewriting history. Moving PACKAGE Moving DOCUMENT Moving INFORMATION
32 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?)
33 Who best other than A Ground handler An RFS Service provider A Cargo systems provider Fasten your seat belts!
34 Jan de Rijk Logistics Improving Global Supply Chain Synchronization and Agility Are we on the right track? Sebastiaan Scholte C.E.O. Istanbul, March
35 Jan de Rijk at a glance 4 lines of Business: International Transport Warehousing Benelux distribution Retail distribution Strong asset based operator with 700 trucks and 1,300 trailers Over 1,000 employees and 25 offices in 15 countries in Europe
36 European Road Feeder Service daily network snapshot 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 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
37 Air cargo in the procurement chain 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 Origin Off-line Trucking Onload Airport Offload Airport Trucking Off-line Destination Airport Airport Shipper Transfer Delivery Build/ Reco nfigur e/ Weigh Pallet s Load Aircraft Offload Re- Config Transfer Delivery Transfer Consignee Forwarder Handling Agent Airline Handling Agent Forwarder 37
38 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
39 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
40 THANK YOU Jan de Rijk Logistics The connecting link in your supply chain
41 From landing to take-off: Improving Global We Supply care! Chain Synchronization : Ground Handling and Agility. : Cargo : Fueling Are we on the right track? : Executive Aviation Alan Wright Istanbul, 10 March 2011 : Aircraft Maintenance : Aviation Security
42 The Issues what makes it difficult? Lack of a single blueprint or Master Operating Plan (MOP) From landing to take-off: Different IT platforms & FSU versions in use We care! : Ground Handling System capability and management (messaging) : Cargo : Fueling Lack of discipline (timings, messaging) Lack of information e.g. % fill or volume Players do not synchronize their modal networks : Executive Aviation : Aircraft Maintenance : Aviation Security
43 Who can we learn from? Integrators have solved many issues End to end data integrity From landing to take-off: We care! Synchronization of road and air movements Widespread Customs pre-clearance : Ground Handling : Cargo : Fueling : Executive Aviation : Aircraft Maintenance : Aviation Security Coordination and pre-planning of volume. Real-time manipulation of volume. (Containerisation) C2K Phase 3 & e-freight are not merely aspirations 3/14/2011 Page 43
44 So Containerisation? what is it, and what are the advantages? From landing to take-off: We care! : Ground Handling : Cargo : Fueling : Executive Aviation : Aircraft Maintenance : Aviation Security 3/14/2011 Page 44
45 Impossible? Common denominators and what is missing? Common denominators From landing to take-off: Air Cargo / Aircraft & Trucks / IT Systems / Warehouses / ULDs What is missing? - Engagement - Planning - Structure - Discipline We care! There is huge a opportunity in front of us. : Ground Handling : Cargo : Fueling : Executive Aviation : Aircraft Maintenance : Aviation Security 3/14/2011 Page 45
46 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
47 Air Cargo industry situation Past worst recession Increasing costs Eroding yields Customers want faster, cheaper, reliable service Source Boeing
48 Air Cargo industry situation
49 Air Cargo industry situation
50 Industry response: Electronic Integration Non Integrated Supply Chain Electronic Integration Vertical Integration
51 Electronic Integration Benefits Reduce processing costs Reduce processing errors Improve delivery times Better customer service Increased industry profitability
52 Challenges to achieve electronic integration Standardization Vs Flexibility Limited Richness Limited Reach distribution control > intermediaries CCS industry Portals Intra organisation integration
53 The Solution: Insource distribution capability Increased Richness and Reach, through open Inflexible standards -> Richness and Reach? standards Power of information distribution? Power of information distribution retained e-freight dilemma? e-freight benefits achieved Inter/intra organisation integration? Inter/intra organisation integration ready Future proofing? Future proofed
54 The tool: Integrated Message Broker Sits on-top of the cargo application Receives data and transmits data Multiple Media: SMS, , FTP, MQ.& Type b Multiple Formats: <enter your format here> An integral part of SkyChain
55 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
56
57 Panel: (Discussion) 57
58 Chairman s Closing Remarks Chris Notter, Head of Cargo Handlıng/Hub and Network, Etihad Airways
59 Networking Luncheon 59
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