June 23, 2010 - When it comes to freight forwarding, mainland Chinese airlines are their own worst enemies, and over the years they have acquired a reputation for being unreliable and unethical which has resulted in foreign carriers securing a lion's share of the mainland's international air cargo market, the South China Morning Post reported.

In an attempt to redress this imbalance the government wants the cargo divisions of its major carriers - Air China, China Eastern Airlines and China Southern Airlines - to merge.

However, international freight forwarders who employ carriers on behalf of major western importers, say the move is unlikely to persuade them to stop shunning the mainland's cargo airlines.

Several such air cargo joint ventures have been set up over the past few years, including Jade Cargo Airlines, a venture between Shenzhen Airlines and Lufthansa; Great Wall Airlines formed by Singapore Airlines and China Aerospace Science and Technology Corporation; and Galaxy International, a venture between Sinotrans Air and Korean Air.

Meanwhile, Cathay Pacific Airways and Air China are awaiting approval from mainland government to set up their cargo joint venture.

There are no official figures on how the market share of air cargo among mainland and foreign carriers but a publicly accepted ratio is 70/30 percent in favour of the foreigners.

Beijing wants the mainland carriers to increase their market share by consolidating their resources and injecting capital into the new joint venture to beef up their freighter fleets.

Having limited fleets has curbed the development of the big three mainland airlines' cargo units in the past five years.

Other areas where mainland carriers lag behind their international peers are management, on-time performance and logistics.

Lack of comprehensive networks and local distribution services have lengthened delivery times. Because mainland carriers only fly to a few major cities in Europe such as Frankfurt, London and Paris, shipments bound for secondary cities such as Leon or Nice, have to rely on local trucking services, which are fraught with delays and heighten the chances of damage occurring.

 

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June 21, 2010 - Shippers using the nation's air network after Aug. 1, the deadline for screening all U.S. cargo moving in the bellies of passenger planes, should be prepared to tender their domestic freight much earlier than usual if they expect airlines to screen and inspect the goods prior to loading, according to industry experts.

Dave Brooks, president of American Airlines' Cargo Division, said the airline will require customers to tender their freight six hours before the aircraft's scheduled departure if they expect American to screen the goods and still meet the customers' delivery commitments. American's current cutoff time is four hours before departure, Brooks said.

In addition, American will double its fees after Aug. 1 for screening cargo before it is loaded, Brooks said.

By law, all domestic cargo shipped in the below-deck compartments of passenger planes as of Aug. 1 must be certified as having been screened or inspected at some point in the supply chain before it can be loaded aboard the aircraft. In an effort to push the screening responsibility upstream, Congress created the Certified Cargo Screening Program (CCSP), a voluntary initiative that authorizes shippers and freight forwarders to screen and inspect cargo before it reaches the airline.

The CCSP's goal is to spread the screening burden equally across the supply chain, and to allow shippers to be in control of opening and inspecting their own goods rather than having someone do it for them, thus raising the risk of damage to high-value consignments like pharmaceuticals and medical devices.

About 500 freight forwarders are enrolled in the CCSP, making them by far the largest group participating in the program. By contrast, shipper involvement has been weak, with many shippers leaving the screening functions up to the forwarders as part of the shipper-forwarder business relationship. Forwarder executives say that while they are willing to pull their weight, putting the onus totally on the forwarders threatens to create a cascade effect that will result in shipment delays, missed flights, and much ill will throughout the supply chain.

The air-cargo supply chain is currently at 75 percent screening compliance. However, the biggest challenge will be with the remaining 25 percent, most of which will involve multiple pieces shrink-wrapped in pallets or loaded into containers destined for the nation's busiest airports.

If a consolidated shipment arrives at the airline unscreened, it will have to be disassembled and each piece individually screened or physically inspected before the load is rebuilt and loaded on the plane. The potential delays involved with such a scenario should be enough to motivate shippers-who are paying a premium for the speed of air deliveries-to screen or inspect their cargo before it leaves their hands, carrier, forwarder, and government officials contend.

Brooks of American said the airline will keep the four-hour cutoff times and waive the additional screening fees for customers who can certify that the cargo has been screened or inspected before it reaches the airport.

 

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June 23, 2010  - The Ministry of Transportation in Indonesia will extend the application of less than container load (LCL) goods service tariffs for line two warehouses and local forwarder cost component at Tanjung Priok port. Bisnis Indonesia reported.

Secretary to the Director General of Sea Transportation Bobby Mamahit stated the tariff formulation would be extended since the previous implementation was only valid for six months starting on January 1, 2010.

"A new directorate general of sea transportation decree on tariffs for line two warehouses and local forwarder cost component at Tanjung Priok port is being drafted," he said.

According to Mamahit, the policy was taken after coordinating with several service providers and user associations at Tanjung Priok port.

"The tariff arrangement is to create efficiency in goods handling at ports to bolster national product competitiveness," he said.

 

Cargonews Asia  

June 18, 2010 - Singapore will expand its air services pact with Greece to allow unlimited cargo and passenger flights between the two countries, Dow Jones reported.

They agreed to expand a bilateral air services agreement, Singapore's transport ministry said.

Carriers from both countries can also operate up to 14 weekly passenger services from either country to any onward destination. They can also base their cargo aircraft in both countries.

The agreement "promotes people-to-people ties, boost tourism and enhance bilateral economic relations not just between Greece and Singapore, but also between the Asia-Pacific region and the EU," the ministry said.

Singapore Airlines, the city-state's national carrier, currently operates twice weekly passenger flights between Singapore and the Greek capital of Athens. 

Cargonews Asia

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