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Issue 5 2012


///IRELAND Malfunctioning IT market hurts air freight


Air freight exports out of Ireland were slightly positive in the first quarter but since have since retreated. The January-June figure of 18,487 tonnes was 10% below the equivalent period in 2011. Boston became the biggest single


destination, by merit of restricting its losses to 4% in the first half, recording 1,645 tonnes. Other US markets collapsed, with Atlanta shrinking 41%


and New York down by more than 56%. Volumes to both Hong Kong and Singapore fell by more than 20%. Ian McCool, MD of IAM, Ireland’s


leading GSA, says slowing demand had led to reduced movements of some IT products. There has been a migration towards sea freight for the US market due to high inventories there. Conversely, large movements


of food products that would traditionally go by sea continued to fly earlier in the year due to production shortages in Asia. “The continuing uncertainty of


the Eurozone crisis has had knock- on effects on the global economies, but one positive outcome has been a weaker currency, making Irish exports to non-Euro countries more competitive,” McCool says.


“The weak Euro also makes it more expensive for agents to use UK gateways and some are starting to use carriers ex-Ireland rather than ex-UK. “The Irish economy is well


positioned to bounce back as global economic conditions start to turn more favourable. The cost base in Ireland has reduced significantly over the last four years. The skill set


is still very strong and we continue to attract foreign direct inward investment.” IAM principal Air Canada has


extended its seasonal Dublin- Toronto service to mid-October this year instead of finishing in mid- September, due to relatively high demand and availability of aircraft. “The export market from Ireland


to Canada has fallen off around 8% year on year by weight. We would love to have a year-round service to Canada, but in the meantime we continue to feed eight daily services out of Heathrow through the winter,” McCool says. “In addition to our year-round


traffic of computer parts, medical devices, machine parts, oil drilling equipment,


foodstuffs, aircraft


components and pharmaceuticals, we are starting to see an increase in temperature-controlled shipments. Air Canada has invested heavily in this area, offering special express handing as well as active temperature control via specialised ULDs.” Overall


transatlantic capacity


increases sharply in the summer, and certain markets such as JFK have enormous overcapacity with four wide-body flights per day direct from Ireland. For shippers it is a buyer’s market, with export volumes so slow. American Airlines’ daily seasonal Dublin-Chicago service, operated


by a B767-300 offering over 60 cu metres of cargo capacity, has been “very busy ex-Ireland so far,” McCool says. “In addition to moving Irish- originating cargo, we also get a lot of feed from interline partners from Asia looking for onward capacity to the US. “We have been very successful in


promoting the entire AA network. AA flies to 260 airports with more than 3,500 flights per day, and the efficiencies of the Chicago hub mean we can offer same-day connections to most major cities. In addition to our flown connections we are feeding other US gateways. Our Mexican trucking service from Dallas-Fort Worth has been popular with Irish forwarders.” American will introduce its


first B777-300 on the Heathrow- Dallas route in the next six months, giving


significantly increased


cargo payload. This may help AA’s Expedite TC temperature-controlled product, which McCool says is building well to destinations in North and South America. In May, AirAsia X re-entered the


European market after a two-month gap, reopening what had become a popular option to Australia ex- Ireland. IAM now feeds cargo from Europe with various interline carriers to Kuala Lumpur, connecting with scheduled AirAsia X services to Sydney, Melbourne, Perth and Gold Coast.


Fuel rebate ‘would help economy’


A system of fuel rebates for truckers could help boost the economy – while at the same time putting money into the Irish Government’s coffers, argues a new report. Ireland’s haulage industry has


lost 20% of its licensed members in the past three years and it urgently needs to prevent further loss of jobs, warns a working group set up by the Irish Road Haulage Association and the Department of Finance. The report by the group said


the Hire and Reward sector carries 95% of Ireland’s exports by road and plays a vital role in Ireland’s export led economy. The industry has argued for many years for an Essential User Rebate (EUR) - culminating in the formation of the new working group set up to examine the economic viability of such a rebate. The IRHA argues that the


EUR would be a benefit to the Exchequer rather than a cost.


It


would encourage Irish truckers to fuel – and hence pay taxes - at home rather than abroad It would also encourage Continental hauliers torefuel in Ireland, generating additional excise receipts. It would also reduce the attraction of laundered fuel.


One of the largest road


operators in the Republic of Ireland, Target Express has ceased trading,


with the loss of nearly


400 jobs, according to local press reports. Owner Seamus McBrien blamed “hardline tactics” adopted by the Revenue Commissioners for the company’s demise, despite repeated representations to Government ministers. Target Express had depots in Ireland, Ulster and mainland Britain.


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