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Issue 2 2015 - Freight Business Journal Try e-freight – it’s easy


It has taken a long time and a lot of investment to reach the point now where one in four air waybills (AWBs) have moved from paper to ‘e’, writes John DeBenedette, managing director of specialist soſtware firm, WIN. But


of the 25%


e-AWB penetration reported by IATA as of December 2014 - e-AWB being only the first of 20 paper documents targeted for elimination under e-Freight - the vast majority are from the 50 largest multinational freight forwarders. It is a great achievement to


be sure but unfortunately it represents but a fraction of the more than 10,000 forwarders who need to embrace this change. And while it is tempting to blame technology, industry change can only be driven by people. The sad fact in air cargo is that not enough people have yet been spurred into action to make the switch. The largest freight forwarders began the march to automate


their transactions with airlines back in the 1990s with Cargo 2000, and their processes, along with those of the major carriers, have become not only more efficient, but measurable, and this enables them to offer higher value products including time-definite service to their customers. Independent


forwarders


should take note that sitting on the sidelines for much longer may have undesirable consequences. As the multinationals consolidate their gains and reap the efficiency that electronic transactions bring, and as carriers are emboldened by the critical mass now coming into reach, it is increasingly likely that surcharges for paper AWBs, already in effect in some markets, will proliferate. Making matters worse, many of the smaller forwarders whose transactions are counted in the e-AWB statistics are only re-keying their AWBs into carrier websites, making their


operations and processes less efficient to satisfy the demands of their carrier vendors. In order to avoid a two-


tier system in which small forwarders’ processes become fragmented and inefficient, now is the time for them to take action and get started with e-AWB and e-Freight. The good news is that in 2015, there are readily available technology solutions that can easily provide even the smallest of forwarders the same level of automation as the big boys but at a tiny fraction of their cost so AWB data can flow seamlessly from their own system directly into the airline’s.


///NEWS Schenker settles with three airlines


German forwarder DB Schenker has reached an out-of-court settlement with three airlines in a damages claim. It said it had “dismissed” claims against Cargolux, Nippon Cargo and SAS relating to a cartel between 1999 and 2006 in a lawsuit brought in the Eastern District of New York. However, it said it would continue to pursue its claims against other air carriers involved in the $370m case, in which it was alleged that the


airlines had manipulated surcharges. Schenker AG filed the complaint against Air


France, KLM, Martinair, Cargolux, Qantas, SAS and All Nippon Airways in New York in August 2014. It also filed a German lawsuit in December 2013


against Air Canada, British Airways,


Cargolux, Cathay Pacific, Japan Airlines, LAN, Lufthansa, Qantas, SAS Singapore Airlines and Swiss Airlines.


Palletways member to open Heathrow site


Logistics and forwarding specialist SLi is to set up an operation at Greenford, close to Heathrow airport. The operation will be based at Palletways’ southern hub; SLi is a founding member of the pallet network. Colchester-based SLi says the Greenford site


will allow it to expand its air cargo and express distribution services, making it one of the largest Palletways members. The new depot also fits in with SLi’s policy of offering supply chain and logistics services from sites strategically placed at the largest UK sea and airports. Managing director Richard Triolo, said: “We’ve


had ambitions for a long time to extend our reach and move into worldwide shipping and the new Heathrow facility means we’ll be able to offer a range of global logistics services.” The company has a head office and depot


at Colchester, currently being expanded from 25,000sq ft to 60,000sq ft. It also has 100,000sq ft at Felixstowe and 15,000sq ft at Stansted. It can also offer customs clearances at UK


ports and airports from Colchester through CCS-UK and MCP Destin8 and ETSF / ERTS temporary bonded storage services at Stansted and Felixstowe.


New home for Hartrodt


Forwarder a.hartrodt (UK) has bought a new UK headquarters in the Hatton Cross area of Heathrow. Hartrodt House dates back to around 1900 and initially hosted a school but was converted to offices in the 1980s and a modern annex added. The company moved into the new premises in


January after extensive modifications had been carried out, while retaining the original features and character of the building. Managing director, Andreas Russ, said it took


quite some time to find the right opportunity. “We wanted to be close to Heathrow Airport and invest in a property, rather than signing another lease agreement


– the problem is that most


properties around Heathrow Area are owned by major investment companies and pension funds


– and these companies don’t sell even when many of their properties have been sitting empty for long periods of time.” The UK arm of Hamburg-headquartered


a.hartrodt also has offices in Liverpool and Rugeley in the Midlands.


Felixstowe becomes Seko centre


Fulfilment specialist SEKO Logistics has opened a branch in Felixstowe to support its global freight forwarding and logistics operations. It now has eight locations in the UK, including a new London Heathrow base opened in 2014. The new office is run by directors, David Hill and


Jamie Harrold, who have both joined SEKO Logistics from CEVA. Managing director of SEKO Logistics, Keith O’Brien,


said: “Felixstowe is a strategically important location in the UK and we are confident that David and Jamie will quickly establish a strong presence for SEKO Logistics in the region. Our UK business grew by 28% in 2014 thanks to the growth in our business services and branch network and we will continue to open new business units when we find talented, entrepreneurial and ambitious teams of people who want to be part of our


exciting future.” Last year, Seko Logistics added 152,000sq ft of logistics


space in Milton Keynes for its omni-channel global fulfilment services. It follows the opening of a similar size logistics centre in Northampton last year and the launch last October of a dedicated omni-channel facility in Cranbury, New Jersey, for British retail brands starting out in the US market. SEKO Logistics also acquired an equity stake in full


service e commerce agency, Red Hot Penny, to provide a complete solution for retailers. It combines extensive experience in creative design, e-commerce technology and digital marketing with SEKO’s global warehousing and fulfilment operations to deliver an end-to-end solution for retailers, particularly luxury goods, arts and fashion brands.


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