NorthAmericaReport


Chicago O’Hare International airport is to be the site of a new perishable cargo centre, the first of its kind in Chicago, that will be set up, funded and managed by a third party. The Chicago Department of Aviation (CDA) is looking for


Chicago targets perishables Canada faced with multiple challenges


a company able and willing to develop and operate the on- airport facility, which would deliver and process goods such as fresh flowers, food and pharmaceuticals. The centre is expected to “vastly increase the speed, availability, variety and freshness of perishable goods delivered to the Chicago region”, a statement from the CDA said. A 27,000ft2


(2,508m2 ) vacant cargo building on the east


side of the airport has been earmarked for the development. The site has direct ramp access and convenient road links. According to CDA commissioner Rosemarie Andolino:


“The perishable centre will provide the seed for Chicago to expand as an international marketplace for time-sensitive products such as food and flowers that have great potential for growth in the Chicago region.” It is hoped that the new centre will bring in new, direct


perishable cargo traffic from South America and Europe – much of which is currently flown to Miami and then trucked to the Midwest area. Andolino added: “What’s more, we continue to make


progress on the O’Hare Modernization Program and as con- struction begins on the new O’Hare International Airport Northeast Cargo Center, O’Hare will have even greater capacity to support additional air cargo activity.”


“The volatility of Canada’s air cargo industry over the past few years has not lessened,” remarks Ruth Snowden, executive director of CIFFA – the Canadian International Freight Forwarders Association. She continued: “Although the Canadian


economy is stable – and even growing a little, Canadian traders are faced with the same chal- lenges as everyone else when customers in Europe or the USA or Asia face economic ills. Also, the Canadian dollar is very strong vis-à-vis the US dollar right now ... which negatively impacts our export markets.” When parity exists between the two North


American currencies, cargo tends not to go to Canadian airports, being sent instead via airports over the border in the US where rates are lower. This is because at US gateways there are big-


Snowden notes continuing volatility in Canada


ger aircraft, no NAVCan (Canada’s civil air navigation services provider) fees, and more airlines competing for business on every trade lane, she said, admitting: “We certainly have seen a


turnaround from a year or two ago when Cana- dian freight forwarders could attract US cargo and truck up to Canadian airports for export.” In spite of this, Snowden observed that Cana-


dian forwarders remain strong in certain segments – especially in the pharmaceuticals and perishables industries. However: “We are facing some challenges


with the implementation of the Transport Cana- da Air Cargo Security programme, but this isn’t unique to Canada. Many countries are creating air cargo security regulations which extend to freight forwarders and in many cases to shippers. “CIFFA members have been actively engaged


with Transport Canada, many are Approved Par- ticipants (Regulated Agents) and CIFFA has made participation in Air Cargo Security a pre- requisite for membership in the association.”


Snowden also pointed out that the Canadian government is


actively pursuing discussions regarding the promotion of trade with countries such as Korea, Thailand and India.


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Air France-KLM is one of the European carriers already at O’Hare Links with Asia are essential


Marc Bibeau, president of Overseas Express Consolidators (Canada) Inc, says that while international air freight services in general are vital both to economic development and the efficient movement of goods, links with Asia are of special significance. “Asia, and in particular China, is a source of manufactured


goods that Canadian companies have come to rely on and there- fore it forms a large part of our business. It is no secret that China to Canada is the major trade lane, but increasingly we see India, Bangladesh, Vietnam and other economies also growing in importance,” he outlined. Traffic on this sector is still heavily weighted in favour of East-


West, Bibeau noted, but the growing middle class in Asia and its appetite for Western goods is changing this situation. Imports of Western luxury goods are on the rise, while demand for natural resources, lumber, coal, peat moss, and scrap metal as well as waste paper have also fueled China imports. But the sector is not without its challenges. Shipments sent to


the US, and then trucked to their destination in Canada instead of being flown direct, can sometimes suffer delays in total transit time; US Customs inspections can also delay critical air freight in the US while transiting to Canada; and large-volume shipments are sometimes hampered by freighter capacity constraints as greater capacity exists between Asia and the major US airports.


BRIEFS • BRIEFS • BRIEFS


EXPOLANKA FREIGHT, the Singapore-headquartered multi- modal forwarder, has opened its first office in the US. Expolanka USA is located in New York and will capitalise on the parent com- pany’s strong presence in the retail fashion logistics sector.


INTERNATIONAL LEASE Finance Corporation (ILFC), a wholly- owned subsidiary of American International Group, is to lease three new B737-800s to China Airlines, the aircraft being due for delivery in the second quarter of next year. ILFC recently opened offices in Singapore and Beijing to support its customers in the Asia Pacific region.


13 August 2012 Page 7


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