New Agreements Between Canada and Switzerland

(Prime Minister’s Office)
One of Canada’s top-20 international air travel markets, Switzerland is an important aviation partner for Canada. In this context, Canada and Switzerland have successfully concluded negotiations toward an Open Skies-type air transportation agreement, which modernizes the 1975 agreement (last amended in 2002) to better reflect today’s market realities.

The agreement now contains expanded operating rights for airlines from Canada and Switzerland to operate air transportation between each other’s territory and third countries, in conjunction with scheduled passenger and/or all-cargo air services between the two countries. It also enables airlines to adjust their prices with greater flexibility to meet current market conditions.

Overall, the agreement provides more flexibility for airlines and airports to consider commercial opportunities, facilitates greater economic activity, strengthens ties with Switzerland and ultimately benefits passengers and shippers by allowing more flight options and routings. Read more here.

FAA Issues Safety Alert on Lithium Batteries

(CIFFA eBulletin)

The U.S. Federal Aviation Administration on Friday alerted airlines of the results of new research on risks associated with transporting lithium batteries as cargo on aircraft, and recommended actions to reduce those risks reports American Shipper. In a Safety Alert for Operators the FAA summarized recent research, which shows that lithium metal (non-rechargeable) and lithium-ion (rechargeable) batteries are highly flammable and capable of igniting during air transport under certain circumstances.

FAA research also indicates that Halon 1301, the suppression agent found in Class C cargo compartments, is ineffective in suppressing lithium metal battery fires. The Pipeline and Hazardous Materials Safety Administration (PHMSA), in coordination with FAA, is considering the best course of action to address the risk posed by lithium batteries. New rules under consideration may include new packaging and training requirements, and tougher guidelines for fire suppression equipment on aircraft that carry the batteries.

The notice can be read here.

Rush to Asian Gateways for Around-the-World Services

(Cargonews Asia – Ian Putzger)

Airlines have rushed freighters to Asian gateways to take advantage of the expected peak season surge in demand. Both European and Asian carriers have inaugurated new routes, several of them moving east around the world in a bid for better yields. [...]

The rush of freighters to Asia’s major gateways reflects the bullish mood in the air cargo industry. In preparation for a strong peak season, carriers have built up capacity in the market over the past few months. Read more here.

Couriers Shift from Packages to Freight

(Air Cargo World)

A survey by the Messenger Courier Association of America (MCAA) said its members are changing from delivering letters and packages to becoming “key players in the global supply chain, a dramatic shift from their previous role”.

The MCAA members have migrated towards handling larger freight with 71% of respondents offering expedited freight delivery. Some 42% of members reported an increase in larger freight deliveries.

“This survey verifies what we’ve been hearing from our members – participating in the growing need for global deliveries has kept them viable and successful,” said Chris MacKrell, president of MCAA. “The majority of our members (53%) say their businesses are doing better than a year ago.

“An important component of that success is the industry’s shifting role as a key player in the global supply chain. That contrasts with the old-fashioned view of our industry as one consisting of mom and pop companies delivering letters.”

The shift is supported by increasingly sophisticated technology noted Mackrell: “Seventy-five percent of respondents told us that their communications’ systems were integrated into their business systems and 93% accept orders via the internet. An increasing number (24%) are able to capture data directly from customers’ websites.”

Key industry sectors served by MCAA members are medical, banking, pharmaceutical, high-tech, 3PLs and government. The survey indicated that most of his members have over 20 years’ industry experience.

Air Cargo Demand Set to Slow

(International Freighting Weekly – Katerina Kerr)

Rapid rebound from recession can’t be maintained, claims IATA

International air cargo traffic growth will slow over the second half of 2010 and into 2011, following the sector’s rapid rebound from recession, according to the International Air Transport Association (IATA).

“Uncertainties are rising about the economic outlook with talk of a ‘double-dip’, but current conditions in cargo markets remain positive,” says IATA in its third-quarter Cargo E-Chartbook report. “Air freight has entered a slower phase of expansion, but the pace of growth in both volumes and yields remains above trend. Revenues have been growing strongly and, in many regions, cargo profitability is back to pre-recession levels.

“The environment will get more difficult. Even without a ‘double-dip’, demand will slow and new capacity will put pressure on load factors and yields.” Read more here.

Lithium Battery Curbs Likely After UPS Crash

(Cargonews Asia)

Federal officials are poised to substantially tighten restrictions on transporting lithium batteries in U.S. cargo planes, according to people familiar with the details, after an apparent cargo fire resulted in the crash of a United Parcel Service (UPS) jet in Dubai, reported Dow Jones Newswires.

The move, which would affect nearly all U.S. cargo carriers, could also force manufacturers and distributors of consumer electronics to alter their packaging and documentation procedures. Lithium batteries are used in a wide array of electronic devices, such as cell phones and laptop computers.

The urgency of the new restrictions, which people familiar with the matter expect to be announced shortly, appear to be a response to signs that lithium batteries may have stoked the intense fire and dense smoke that filled the cockpit of the UPS Boeing 747 jumbo jet before it went down on September 3, while trying to return to Dubai International Airport. Read more here.

Ex-Asia Rates May Be Stabilizing

(Aircargo World)

UK analyst Drewry Shipping Consultants, which monitors airfreight rates as well as the container shipping sector, says prices ex-Shanghai may have levelled off in August following three months of decreases.

The Drewry Air Freight Price Index, published in the company’s monthly Freight Shipper Insight publication, fell by 10.1% in July against June, despite a continuing increase in volumes out of Asia.

“Base rates have been falling for all destinations we track from Shanghai (London Heathrow, Moscow Domodedovo, Prague, JFK and Los Angeles) since April, although higher fuel and security surcharges mitigated those declines in May,” spokesman Simon Heaney said.

Vancouver Bomb Threat: Al Qaeda Terror Link or Pure Hoax?

(Video: Associated Press • Story: Christian Science Monitor)



A Vancouver bomb threat on a Cathay Pacific flight from Hong Kong caused Canadian officials to send fighter jets to escort the plane to the airport Saturday.

Following a bomb threat on a Cathay Pacific flight en route to Vancouver from Hong Kong, Canadian officials sent fighter jets to escort the plane to the airport. Once grounded at the Vancouver International Airport police conducted a thorough search of the plane and its luggage, but found no trace of explosives.

The Vancouver bomb threat comes as yet another scare in a series of foiled or failed terror attacks.

Following the attempted Times Square bombing and the failed Christmas day bombing on a Detroit-bound flight, it remains uncertain if this latest attempt will result in increased security measures.

The plane landed safely on Saturday with 283 passengers and 14 crew members in good condition. Once on the ground, the passengers spent 2 hours in customs before leaving without their baggage.

Cathay Pacific has termed the bomb scare a "hoax," but officials are still looking into the matter. Read more here.

Forwarders Report Cargo Backlogs Already Reducing

(International Freighting Weekly – Damian Brett & Will Waters)

Airlines moving shipments faster than expected

Airlines are clearing cargo backlogs in Europe more quickly than expected, although the logjam in Asia continues to mount, according to forwarders.

Ceva Logistics said it had obtained information from carriers that indicated it would take three to five days to clear export backlogs from Amsterdam, Frankfurt, Charles de Gaulle and London Heathrow, subject to destination and carrier.

Following the opening of some of the major European cargo airports yesterday, Rhenus Logistics expected it to take around five days to clear cargo backlogs at Amsterdam, but has since said it could be done by the weekend. “The backlog of freight is going faster than expected,” the company said. “This means a number of airlines are already accepting new bookings.” Read more here.

Ash Cloud Halts Northern European Air Cargo – No End in Sight

(Video: RT News • Story: Transport Intelligence)



The eruption of the Eyjafjallajökull volcano in Iceland has had an extraordinary effect on the air transport system of northern Europe. Since Thursday the air space of first Britain, Norway, the Netherlands and now Germany, Austria, Belgium, Denmark, Finland, France, Germany, Latvia, Luxembourg, Poland, Slovakia, the Czech Republic, Bulgaria, Sweden and Switzerland have been shut to all commercial traffic. The suspension of activity is set to continue into at least the beginning of the week. Further disruption seems likely as the volcano will certainly continue to erupt. […]

The obvious reaction by logistics planners will be to use other modes of transport. This is not as difficult as it might first appear. Air freight for traffic within Europe is of secondary importance.

Although the location of a number of very large airports, it is often just as quick to move goods within Europe by road. A good example of this is traffic between Britain and France. This route has access to good ferry services and roads. These can easily be stretched to more distant locations such as Spain or Germany. Read more here.

Related:

• Shippers Face Steep Air Cargo Rate Hikes (JOC)
• Air Freight Backlogs Build Across Asia (International Freighting Weekly)

Volcanic Ash Shuts European Airports

(Video: Bloomberg • Story: Journal of Commerce Online)



Cargo flights among those canceled across the continent

Drifting ash from a volcanic eruption in Iceland forced airports across northern Europe to shut down on Thursday, canceling as many as 4,000 passenger and cargo flights.

Eurocontrol, the pan-European air traffic control agency, said flights were being affected Thursday to and from the U.K., Scandinavia, Belgium and the Netherlands.

All flights in and out of the U.K. were suspended until 6 p.m. local time at the earliest. Officials said it is too early to say how long it will take the ash to clear. Air space in northern Germany likely will be closed later Thursday, and French authorities are considering whether to close air corridors over France. Read more here.

TIACA Seeks Review of Hazmat Rule [Lithium Batteries]

(Journal of Commerce Online – Thomas L. Gallagher)

Air cargo group says restrictions on lithium batteries deviate from international standards

The International Air Cargo Association is calling for modifications to changes proposed by the U.S. government to the way lithium batteries are carried onboard aircraft, warning it will have a significant impact on not only the air cargo sector but also manufacturers, retailers and consumers of electronic products, medical devices, motor vehicles and many other products.

A new ruling by the Pipeline and Hazardous Materials Safety Administration proposes regulations that would require lithium batteries to be stowed in a crew-accessible location except if they are shipped in an FAA-approved container or a Class C cargo compartment. Read more here.

Air Freight in Canada – New Market Report Published

(Companies and Markets)

This Air Freight in Canada industry profile is an essential resource for top-level data and analysis covering the Air Freight industry. It includes detailed data on market size and segmentation, plus textual and graphical analysis of the key trends and competitive landscape, leading companies and demographic information.

Highlights include:

• Detailed information is included on market size, measured by value and/or volume

• Five forces scorecards provide an accessible yet in depth view of the market’s competitive landscape

View the Air Freight in Canadareport here.

Pupatello Touts Potential of Cargo Village

(Windsor Star – Doug Schmidt)

Essex County specialty greenhouse produce picked fresh in the afternoon and placed on store shelves the next morning in Berlin – and “that’s just scratching the surface,” Economic Development and Trade Minister Sandra Pupatello said of the initial promise of developing a “cargo village” at Windsor Airport.

The MPP for Windsor West said the local airport is “ideally situated” to be transformed into a regional air cargo hub, and she announced Friday that Windsor is getting $200,000 to study the proposal in greater detail. Pupatello used a visit to the airport to announce a total of $350,000 in provincial funding for three initiatives designed to bring new jobs and investment to the area.

“There’s no doubt in my mind that we have potential here,” she said in announcing the funding under Ontario’s communities-in-transition program.

Pupatello praised Mayor Eddie Francis for continuing to push the airport initiative. More than $100,000 in additional funding is required to undertake the second phase of a feasibility study begun by Germany’s Lufthansa Consulting, and Francis said he’ll be seeking city council’s support, although he added the funding was already contained in the airport’s most recent capital budget. Read more here.

The EU and Canada Agree on an Air Transport Deal

(New Europe)

The European Union (EU) has completed several aviation agreements, including a comprehensive Air Transport Agreement with Canada, which will allow unlimited access to Canadian cargo operators and commercial airliners, and vice versa. Air carriers will also be able to pick up traffic in each partner’s territory and continue to a third country as part of a service to or from their home territory. All 27 EU member states signed the agreement.

Canada’s Transport Minister, John Baird, said: “Our government has moved at an unprecedented pace since 2006 to negotiate or enhance existing air travel agreements with other countries, and we are proud to now be signing our largest ever with the European Union. For the first time, Canadian air carriers will be able to access and expand into all EU member states, and EU carriers will be able to expand into Canada. The result will be better air travel choices and new opportunities for Canadian businesses by 2010,” Tax-News.com reported.

The EU is Canada’s second-largest bilateral aviation, trade and investment market. In 2008, Canadian exports to the EU totaled $52.2 billion, an increase of 3.9% from 2007. “This comprehensive air transport agreement will help boost Canada’s economy by creating new jobs, expanding our commercial links and building connections for our citizens,” said Stockwell Day, Canada’s Minister of International Trade. Read more here.

Canada Will Sign Its Most Comprehensive Air Agreement Ever

(EarthTimes)

Canada’s Transport Minister, John Baird, today [Thursday] announced that Canada’s air transport agreement with all 27 European Union (EU) Member States will be signed and finalized tomorrow in Canada. This agreement is the largest and most comprehensive that Canada has ever negotiated, and concludes the process first launched by Prime Minister Stephen Harper.

“Our government has moved at an unprecedented pace since 2006 to negotiate or expand air travel agreements with other countries, and we are proud to now be signing our largest ever with the European Union,” said Baird. “For the first time, Canadian air carriers will be able to access and expand into all EU member states, and EU carriers will be able to expand into Canada. The result will be better air travel choices for Canadians and new opportunities for Canadian businesses by 2010.”

“The EU is Canada’s second largest bilateral aviation, trade and investment market. In 2008, Canadian exports to the EU totalled $52.2 billion, an increase of 3.9% from 2007. This comprehensive air transport agreement will help boost Canada’s economy by creating new jobs, expanding our commercial links and building connections for our citizens,” said Stockwell Day, Minister of Trade. Read more here.

Sudden Surge in Asia Freight

(Cargonews Asia – Ian Putzger)

Forwarders scramble for space as rates go up

Airlines’ endeavours to push their yields upwards have received a shot in the arm from a surge in demand for lift out of Asia that has forwarders scrambling for capacity.

In recent years, the peak season surge out of Asia to North America and Europe was a non-event, leaving carriers frustrated over the absence of the year’s most lucrative period when bottlenecks traditionally push up pricing. The slump that hit the industry in the fourth quarter of 2008 rendered many charter arrangements that forwarders had put into place in anticipation of tight demand futile, so this year most refrained from lining up charter freighter capacity.

As a result, the rise in volume, that commenced on some sectors as early as August, has hit forwarders unprepared.

Airlines and forwarders reported strengthening of traffic in much of the region – from Japan to Korea, China and Taiwan, but the strongest spike appears to have occurred out of China. Read more here.

Air Canada Requires Cargo Security Declaration Form from Freight Forwarders

(CIFFA eBulletin)

As a reminder, the Transportation Security Administration (TSA), through the Foreign Carrier Model Security Program regulations has specific security requirements for all cargo destined to passenger aircraft departing from Canada to the United States for Freight Forwarders.

Effective immediately, all Freight Forwarders shall be required to submit their Cargo Security Declaration Form in addition to each Airway Bill attesting that it has taken all security measures to ensure the integrity of the freight. Please note this is solely applicable for freight destined to the United States from Canada. Please find below an example of Cargo Security Declaration Form:

(Business Letterhead of Freight Forwarder)

General Cargo Security Declaration
AWB #_____________________
Destination: _________________________

The Cargo dispatched by (Name of Agent or Freight Forwarder) comes from customers whose reliability we do not doubt. The cargo has been protected from the time the cargo was tendered to and accepted by us at our acceptance location.

For more information, contact you local Air Canada Cargo Representative or visit the website.

Canada and Japan Expand Bilateral Air Transport Agreement

(Canada-Asia News Service – Transport Canada)

The Government of Canada has reached an agreement with Japan to expand the existing bilateral air transport agreement between the two countries. The expanded agreement allows airlines to offer unlimited services between Canada and any city in Japan outside of the Tokyo area. It also allows, for the first time, under certain conditions, access to Haneda Airport,

Tokyo’s metropolitan airport. The agreement further includes modernized aviation safety and security provisions and provides mechanisms for airline prices to adapt faster to market fluctuations.

Updated IATA E-Freight Handbook Now Available Online

(CIFFA eBulletin)

The latest edition of the IATA e-freight Handbook, published in March 2009, is now available free of charge on the IATA website. The handbook provides a comprehensive guide to IATA e-freight. Main topics include:

• Overall vision and strategy

• Benefits airlines, shippers and freight forwarders can expect from IATA e-freight

• A step-by-step guide to adopting IATA e-freight where customs authorities already accept e-freight shipments

• Business processes, standards and technology supporting IATA e-freight