NEWSWEEK
Prioritising the airfreight sector
CONTINUED FROM FRONT PAGE “EFFORTS ON this front are being spearheaded by the International Civil Aviation Organisation (ICAO). “Finding an agreement among governments on a global approach will not be easy. The industry is united and doing all that it can to help,” he says. According to Tyler, part of the difficulty lies in gov- ernmental failure in recognising the importance of the air cargo industry in regards to driving economic growth and development.
“This is why it is essential that the supply chain speaks with a single voice to articulate policies that support its success. I hope GACAG will facilitate a joint action plan to focus on persuading key governments of the need to put cargo at the heart of their economic strategies,” he says. Tyler also announced that, together with The Inter- national Federation of Freight Forwarders Association (FIATA), work to modernise the Cargo Agency Program was progressing well. The programme is aimed towards improving the relationship between airlines and freight forwarders, with a series of proposals expected to be submitted to the Cargo Agency Conference later this year.
“These will help the programme to reflect the reality of the principal-to-principal relationship that exists in over 70 percent of transactions performed between airlines and their forwarding partner. It reflects the changing rules and obligations linked to liabilities between the partners,” concludes Tyler.
Cathay results plunge
The Cathay Pacific Group, which saw its net profit plunge 83.3 percent to HK$916 million in 2012, also recorded strong declines in its cargo division. Freight rev- enues lagged 5.5 percent.
Cathay officials say sluggish demand for freight ser- vices out of Hong Kong and Mainland China impaired them during the year, despite brief traffic spikes in March and in the fourth quarter. This resulted in Cathay and its subsidiary Dragonair curbing capacity by 3.1 percent. Freight yield remained flat, however. The carrier removed four Boeing 747-400BCF convert- ed freighters from its fleet in 2012, and reduced capacity on certain long-haul routes. Unfortunately, these moves couldn’t offset the declines witnessed throughout the cargo sector; Cathay Pacific and Dragonair’s freight load factor still fell three percent to 64.2 percent.
A Japanese forwarders plead guilty
criminal fine of $18.9 million has been issued to two Japa- nese freight forwarders who pleaded guilty to conspiring to fix forwarding fees for air
cargo shipments from Japan to the US. K Line Logistics will pay $3.5 million, while Yusen Logistics will pay $15.4 million. In total, 16 companies have pleaded
guilty in an ongoing investigation, and a total of $120 million in criminal fines has been paid. Head of the US Justice Department’s
(DoJ) antitrust division, assistant attor- ney general Bill Baer, says: “Consumers were forced to pay higher prices on the goods they buy everyday as a result of the non-competitive and collusive service fees charged by these companies. Prosecuting these kinds of global, price-fixing conspiracies continues to be a top priority of the antitrust division.” Separate charges were filed
against the two Japanese com- panies, which claimed they had engaged in a conspiracy to fix and impose fees, including fuel sur- charges and various security fees. These were charged to customers
BAER
Prosecuting price-fixing continues to be a top priority of the DoJ
for services between September 2002
and November 2007. Both companies were charged with violation of the Sherman Act, which car- ries a maximum penalty of $100 million, though this can be increased to twice the gain made from the crime or twice the loss suffered by victims, depending on which is greater.
ACW 18 MARCH 2013
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