ISSUE 2 2010


NEWS


The worst of the recession could be over, says a top transport economist. Kurt van Dender, chief economist at the Organisation for Economic Cooperation and Development told a DHL press briefing in Leipzig on 23 June that there had been a strong rebound in many major EU/Asia airfreight markets in late 2009 and early 2010. Germany-China, for instance, is back to pre-crisis levels and there has also been a strong recovery in Netherlands- China trade. Recovery in airborne business


from the UK and France has been much more muted though. It’s a simiilar picture inbound


into the major EU markets from China, with China-Germany back above pre-crisis levels, but


the others still a long way off. Inbound into the UK from China is still quite flat. Kurt van Dender said that


while the recovery in airfreight had been a little uneven, some of the more dire predictions about bubbles bursting or ‘seizures’ in global trade would seem to be unfounded. “We don’t see a seizure, but perhaps a rebalancing,” he explained. “Perhaps we’re shifting from a situation in which trade drives growth to one in which growth drives trade.” But encouragingly. “growth in


trade is not disappearing” and it will continue in future, though probably at more modest levels than in the years up to 2007. It will probably lag GDP growth,


a collapse in January 2010 so I was surprised to see it carry on.” Revenue in the first quarter of 2010 was up 9% compared with the same quarter in 2009. And while he would like to


The trend is upwards again says DHL


rather than outpace it as it did during the boom years. DHL Express executive vice-


president Charlie Dobbie said that, as far as his own company


was concerned, he was “a little surprised” to see an uplift in volumes in late 2009 and also that the improvement had continued into 2010. “We were expecting


think that the uptick will carry on into the fourth quarter of 2010, it was still too early to say that the improvement was a continuing trend. “Also, we’re still a long way off the volumes of 2007,” and there was continued pressure on yields, he added. However, the improvement in business was very encouraging he said, particularly the upsurge in business eastbound from Germany China, which in the past has been difficult to fill. DHL was meanwhile trying to arrange extra air capacity


German industry fights for the right to fly at night


The German airfreight and logistics industry has banded together in a new alliance to press for more competitive opening hours at major air hubs. The ‘Cargo Needs the Night’ initiative warns that a complete ban of night flights in Germany would put the position of Frankfurt, the seventh largest freight airport in the world, at risk.


The alliance complains that


in recent years German courts have increasingly issued one- sided rulings against night flights, whereas other important air cargo hubs in Europe such as Amsterdam, Paris, London or Madrid, have maintained essential access. The alliance, which includes Lufthansa Cargo, the DSLV forwarders’ alliance, the BGL road haulage and logistics grouping and others, was launched in Frankfurt on 24 June. Honorary managing director of the initiative, Ewald Heim, said: “The logistics sector is


the backbone of Germany’s export business. The ‘Cargo needs the night’ initiative will press hard for competitive operating hours at commercial airports in Germany.” He pointed out that, with about


40% of domestic exports by value transported worldwide by air, “night flights are a key component in functioning global supply chains. Politicians and the public must be made more aware of the importance of air cargo for German industry, which is dependent on exports.”


Lufthansa Cargo CEO and chairman Carsten Spohr added that while the rights of local residents living near the airport was not at issue, “at the same time, we are responsible for thousands of jobs in the logistics industry in Germany, which is an export and industrial nation. Anyone who shuts down central logistics hubs at night is acting irresponsibly and putting the future viability of Germany’s


export industry at risk.” Carsten Spohr called on the


federal government to create reliable framework conditions. “That is the only way that companies can make long-term investments.” Guaranteed continued night


flights was a major factor in DHL Air Express’s decision to locate its main European hub at Leipzig in eastern Germany, including flights


operated by its Aerologic joint venture with Lufthansa. However, a Lufthansa Cargo spokesman said that Leipzig could not offer a solution to its hub problems. “We depend on flights in Frankfurt as we need the connection between freighters and passenger flights. That’s why we have the AeroLogic 777s transferred from Leipzig to Frankfurt for all our weekend operations.”


US set to miss air screening targets


The US Government Accountability Office said that it was unlikely that the Transportation Security Administration (TSA) would meet its mandated August 2010 deadline for screening of all inbound cargo. It said that while TSA had made some progress, it had limited ability to regulate foreign entities. Lufthansa Cargo announced in early July however that it had met


the new requirements at all its US field stations a month ahead of the scheduled implementation date. It can now perform mandatory 100% screening of outbound cargo shipments transported on passenger aircraft at all 17 US airports it serves.


7 Airfreight is showing signs of recovery


without locking itself into expensive fixed capacity. DHL is however bringing some additional aircraft into both its own fleet and Aerologic, its joint venture with Lufthansa. DHL will have eight 777 aircraft by the end of 2010, and while it had originally ordered 11, it would reconsider its position at the end of the year. Three further 777s for Aerlogic


– in addition to the existing five - will be used mainly to bolster capacity on its existing intercontinental network, rather than add new destinations, said MD Jorg Eberhaut. It is also continuing to increase


ramp capacity at its giant new European multimodal hub at Leipzig, eastern Germany.


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