cargo matters - Swiss WorldCargo
Transcription
cargo matters - Swiss WorldCargo
ISSUE 2-2010 / THE SWISS WORLDCARGO MAGAZINE CARGO MATTERS – 06 HIGHLIGHTS 16 CUSTOMERS 18 SPECIAL What do you know about the EU’s new Import Control System? Zurich-San Francisco: the pharmaceuticals route Sustainable sushi from the Maldives with Edelweiss Air AIR CARGO, SWISS MADE – Research by the University of St. Gallen underlines the importance of air cargo to the Swiss economy SWC_CM0210_Cover_060810.indd 1 23.08.2010 13:32:05 Uhr CONTENT 3 5 EDITORIAL DEAR CUSTOMERS AND PARTNERS By Oliver Evans 6 HIGHLIGHTS MORE RED TAPE IN THE INTERESTS OF SAFETY? Ursula Schmeling gives us a wake-up call about the new safety standards By Ursula Schmeling 10 INDUSTRY SPECIAL AIR FREIGHT: A COMPETITIVE FACTOR FOR THE SWISS ECONOMY Research by the University of St. Gallen underlines the importance of air cargo to the Swiss economy From the study abstract by Dr. Joerg Hofstätter und Joachim Ehrenthal 14 PARTNERS 16 CUSTOMERS ZURICH AIRPORT CELEBRATES 10 YEARS AS A CARGO HUB A FAST CONNECTION FOR SENSITIVE AND HIGH-VALUE PRODUCTS Research by the University of St. Gallen underlines the importance of air cargo to the Swiss economy By Farner Consulting AG 18 SPECIAL TRANSPORTING THE TUNA Sustainably-caught tuna is freighted from Male to Zurich By Silvia Cappelli 23 INFO GUIDE SHORT NEWS, INDUSTRY EVENTS, MEDIA AND MORE Swiss WorldCargo ISSN: 1661-3606 is published quarterly and distributed in the USA by SPP, 75 Aberdeen Road, Emingsville, PA. 17318. Periodical postage paid at Emingsville, PA. POSTMASTER: send address changes to Swiss WorldCargo, PO Box 437, Emingsville PA 17318. 24 July 2010: Our Airbus A330-300 HB JHG ”Glarus“ together with the Patrouille Suisse approaching the air field during the Air Show in Emmen. The show was one of the highlights of this year’s celebrations marking the 100th anniversary of the birth of Swiss aviation. EDITORIAL 5 DEAR CUSTOMERS AND PARTNERS – Anyone can say something about how business resembles sports. I commented too, in one of my blog entries shortly after the end of the 2010 World Cup. Your company wins or loses the game; employees play as a team; strategies come from the playbook. And, indeed, the terminology and analogies work – at least to some extent. But powerful insights lie in the differences too. One difference that is immediately apparent is the meaning of winning. In sports, we know what the “win” is: you came first in the race, or your team put the ball in the net more than the other team did. But what does it mean in business? Is it having more revenue from a given market than anyone else? The number of items sold? The profit you made? And, of course, there is a further assumption that needs to be made about the time period for which the “win” is recorded: is it a month? A year? A decade? Now, halfway through 2010, the global market has remained buoyant (with marked regional differences: Asia is very strong, Europe noticeably weaker), and our own Swiss WorldCargo June results were the best to date, 45% above budget and 70% above last year. They came very close to their 2008 level, and in certain countries they exceeded the 2008 mark. Yet while all looks set fair, and it seems as if we are “winning”, we should still remain very cautious and focused. We have learned how extremely volatile the air cargo market can be, with wild fluctuations in either direction that have caught us (and the rest of the industry) by surprise, at least in terms of the speed of the change and the depth of the trough or height of the peak. So here comes another difference: the time frame. A team can win a game. It’s over in a certain amount of time or according to very specific rules. But in business the game does not end. There is no point at which opposing teams shake hands and say “We’re done, thanks for playing.” Business operates in an open-ended time frame and in a market which is ever-changing. And if the market is changing, so must we. Difference number 3: our attitude toward rules. In sports, everyone accepts that very specific rules apply to how you play the game and whether you win or not. In business, there are many different rules for how to play the game, and the real challenge can be in deciding whether a given rule is good or bad for the game. We at Swiss WorldCargo have decided that our rules, our strategy and our priorities, should remain unchanged: a continuing focus on the day-to-day business, on our customers and on the quality delivered by us and our partners. Finally I turn to an analogy that does work: like a healthy sports team, a healthy organisation must be able to handle the departure of key players, welcome new ones and preserve the strength and unique culture of the team. Browse the following pages and you will find out about the latest changes in our organisation. You will also discover an in-depth overview of the air cargo market in Switzerland, specifically the results of a study carried out by a team of researchers from the University of St. Gallen, as well as a comprehensive report on the “Swiss Export Day”, a seminar held last June to discuss the status of exports in the country. You will read, too, about how the Swiss pharmaceuticals industry has taken advantage of our new direct connection between Zurich and San Francisco, and how a fish exporting business based in the Maldives has made its mark thanks to our collaboration with Edelweiss Air. And last but not least, Ursula Schmeling will give you a wake-up call about the new EU customs regulations which come into effect at the end of the year (and here we are talking about rules which really are given!). I hope you enjoy reading, and I look forward to reading your views and comments on Blogistics! www.swissworldcargo.com/blogistics We care for your cargo. Oliver Evans Chief Cargo Officer Swiss International Air Lines Ltd. MORE RED TAPE IN THE INTERESTS OF SAFETY? – SWISS, like the rest of the airline industry, is fully committed to helping make the world a safer place. And so is Swiss WorldCargo. Forwarders and shippers: hear the wake-up call! By Ursula Schmeling HIGHLIGHT MORE RED TAPE IN THE INTEREST OF SAFETY 7 Import goods downloaded from a SWISS plane at Zurich Airport. As of 1 January 2011, the EU Import Control System (ICS) will go live not only in all EU member states but also in Norway and Switzerland. For some years now, the European Commission has had the grand vision of maintaining fully-automated electronic customs handling on a level playing field across the 27 member states of the European Union (EU). The aim here is to create a single customs union, a safer Europe and a paperless environment for customs and trade. The plan for turning this vision into reality is known as the MultiAnnual Strategic Plan or MASP. The MASP, which will take over ten years to become fully implemented, requires a mix of legal, procedural and technological systems to achieve its goal. And driving this change is a far-from-easy task. New supply chain security legislation is part of the plan. As of 1 January 2011, the EU‘s Import Control System (ICS) will go live not only in all EU member states but in Norway and Switzerland, too. From this day on, economic operators will have to provide timely electronic pre-arrival information for all goods entering or passing through the customs territory of the security zone (the EU plus Norway and Sweden) at the first point of entry into the zone. This information will be submitted to the relevant customs administration via an electronic Entry Summary Declaration (ENS). In addition, a Swiss WorldCargo and its handling agents are updating their IT systems as one of the necessary steps for this innovation. Diversion Request and in some countries an Arrival Notification will become mandatory for all air freight. Swiss WorldCargo, in collaboration with its cargo handling agents, has taken all the necessary steps to prepare for these innovations. ”Our IT unit will be implementing upgrades to handle the various latest standard EDI messages such as FWB/16 (the freight waybill), FHL/4 (the consolidation list usually provided at the house air waybill level) and FFM/8 (the flight manifest) to support the EU‘s new requirements,“ explains Michael Pröbsting, Project Manager Transportation at Swiss WorldCargo. ”FWB refers to the electronic transfer of air waybill information from agent to carrier. In addition, other customs information or OCI data elements have been 8 HIGHLIGHT MORE RED TAPE IN THE INTEREST OF SAFETY Economic operators will have to provide electronic pre arrival information for all goods entering or passing through the customs territory of the EU ”security zone“. integrated into the current system to comply with the new EU customs requirements.“ Swiss WorldCargo‘s handling agents around the globe, and in Switzerland in particular, will be taking similar steps to update their IT systems. ”They have shown great commitment to this project, and are working in partnership with our team to achieve the results desired,“ Pröbsting adds. ”The new ICS regulation is similar to the Advance Manifest System or AMS/10+2 supply chain security initiative that was introduced in the USA in 2004 and in Canada in 2006,“ Pröbsting continues. ”China, India and South Africa (since 1 July) also require advanced electronic reporting for security reasons. So shippers and forwarders should be used to the process by now. They must provide the relevant data (FWB and FHL) electronically to the handling agents before delivering the goods to their respective facilities. Otherwise, their goods can be held up by customs authorities. As strongly customer-focused enterprises, our agents and Swiss WorldCargo are, of course, keen to smooth the way and make ourselves as easy to deal with as possible.“ ICS places the burden of supplying the advanced shipment information squarely on the shoulders of the carriers, not the industry. The carrier must submit the ICS message four hours prior to the arrival of a long-haul flight and at departure (wheels up) in the case of short-haul flights. The customs authority then performs a risk assessment and generates a Movement Reference Number (MRN) upon the registration of the ENS, and sends a confirmation of the ENS registration electronically to the person who lodged the ENS and the carrier declared therein. If the shipment is accepted locally, upon arrival the carrier will provide the entry key in the Arrival Notification rather than the individual MRNs. Freight remaining on board for a third country also needs an ENS. Authorized Economic Operators (AEOs) benefit from reduced data set requirements in the ENS. Although related, ICS is different from the AEO supply chain security programme promulgated by the same EU regulations. The AEO is an accreditation regime aimed at improving global security by attempting to certify the cross-border actions of businesses and their trading partners. In contrast, ICS is a transactional programme requiring data for EU customs filings on each and every shipment, much like the 10+2 programme in the USA, which requires the advance filing of 12 data elements (ten from the importer of record and two from the carrier) prior to goods being loaded on a carrier at the point of origin. The intention of ICS and 10+2 is the same: to secure the supply chain by evaluating shipments prior to arrival. Whether the new ICS rules will actually go live in all EU countries, Norway and Switzerland on 1 January 2011 remains to be seen. The Swiss Export Board (SECO) is currently carrying out a survey among HIGHLIGHT MORE RED TAPE IN THE INTEREST OF SAFETY 9 its members to establish the level of interest in and commitment to the EU e-customs project, as well as requirements to intensify cross-border electronic data transfers. In the meantime, the advance filing of airfreight imports from outside the EU can be carried out via a module of e-dec, the Swiss customs office‘s software program. Notification to other customs offices in the case of transit goods can be effected by the Swiss customs‘ NCTS system. ”In the case of Migros, the advance filing is done by our customs clearance agent at the airport,“ explains André Schweizer, head of customs affairs at Migros, one of the leading retailers in Switzerland. Migros imports flowers from India, for example, using Swiss WorldCargo‘s services. As a recent survey reveals, most global forwarders are just beginning to familiarise themselves with the subject of ICS. They feel slightly irritated by that fact that several European states seem to be dragging their heels here. While some airfreight agents still hope that ICS will not actually kick off on 1 January, others have started to sound a wake-up call within their organisations. Every time you turn around today, it seems that there is a new regulatory requirement. Revenue-hungry governments around the world are updating customs codes, modernising existing technology processes and introducing new ones and changing classifications - all in the name of streamlining revenue collection and enforcing supply chain security. The EU has been and continues to be very active on this front. The Swiss business community, meanwhile, remains wary of whether this is all necessary. ”SWISS, as an international premium carrier, has to comply with the legislation in all the countries it flies to or from,“ concludes Michael Pröbsting. ”A high level of security is part of our brand image, and cargo security is a non-negotiable priority throughout the Lufthansa Group. So we have made sure that we and our service partners are ready for the EU‘s new ICS regulations. We hope our customers will be ready, too. By developing efficient standardised processes and meeting the requirements well before the mandated deadline, we are able to give our customers planning reliability. And to drive new efficiencies in our business, we must work towards creating a paperless airfreight industry, too.“ Ursula Schmeling WHAT IS ICS? – The Import Control System (ICS) is a systems architecture that has been developed by the European Community for the lodging and processing of Entry Summary Declarations (ENSs) and the exchange of messages between national customs administrations and between them and economic operators and with the European Commission. In certain circumstances, in accordance with CCIP Article 183a, the New Computerised Transit System (NCTS) can be used instead for lodging ENSs. ICS is the third pan-European processing system introduced by the European Commission. It follows the NCTS and the Export Control System (ECS), which have been in place since 2003. The difference between NCTS, ECS and ICS is that the first two are control systems - where the goods are available to and under the control of customs administrations - while ICS will help identify consignments of which the customs administrations should be aware. Further information: http://ec.europa.eu/ecip/index_en.htm http://ec.europa.eu/taxation_customs/customs/procedural_aspects/general/community_code/index_en.htm Cargo Matters - Edition 2/2010 - August 2010 - Circulation 30 000 Annual subscription: £20.00/$40.00 per issue Publisher Oliver Evans Chief Cargo Officer Editor in Chief Bernd Maresch Director, Head of Marketing & Strategy Managing Editor Silvia Cappelli PR & Online Communication silvia.cappelli@swiss.com Editorial Assistant for this edition Anna Irniger Adaptations Paul Day Special Guest Contributors (in alphabetical order) Farner Consulting AG Joachim Ehrenthal (University of St. Gallen) Dr. Joerg Hofstetter (University of St. Gallen) Ursula Schmeling (Meneghin & Partners) Advisors from Swiss WorldCargo (in alphabetical order) Ashan Pereira (Baurs Airservices GSA/ Swiss WorldCargo Sri Lanka) Special thanks to: Giovanni Nardiello (Agility), Roy Schofield (Maldives Quality Seafood), Claudia Magri (Luftfahrt ohne Grenzen), Claudia Mörker (Swiss Export), Carol Widmer (Luftfahrt ohne Grenzen), Karin Sigmund (Traxon) If you wish to subscribe or unsubscribe to “Cargo Matters“, please contact: Distribution Manager Maria Campanella Marketing Communication maria.campanella@swiss.com Production & Advertising PRIMA info@prima-solutions.ch Design Concept/Layouting Peter Hoffmann, PRIMA peter.hoffmann@prima-solutions.ch Printing SCHMID Druck+Medien j.schmid@druckerei-schmid.de Legal disclaimer: the views expressed in this magazine are not necessarily those of Swiss WorldCargo AIR FREIGHT: A COMPETITIVE FACTOR FOR THE SWISS ECONOMY – A study carried out by a team of researchers from the University of St. Gallen shows that the airfreight flows which pass through Swiss airports are a decisive element in Switzerland‘s appeal as a business location, and that airfreight contributes significantly to strengthening the Swiss economy and safeguarding domestic jobs. From the study abstract by Dr. Joerg Hofstetter and Joachim Ehrenthal (University of St. Gallen) INDUSTRY SPECIAL UNIVERSITY ST. GALLEN 11 Based on the data provided by 217 industrial, commercial and logistics companies in Switzerland, the study entitled ”Air freight as a competitive factor for the Swiss economy“, carried out by Dr. Joerg Hofstetter (Vice-Director) and Joachim Ehrenthal (Doctoral Candidate) should provide an objective basis for public and private decisions on investments and regulations relating to air cargo. In fact, despite its low volumes, Swiss air cargo deserves particular attention. Only about 0.7 of every 100 tonnes of exports leave Switzerland by air, and only about 0.2 of every 100 tonnes of imports enter Switzerland by air. But one in three Swiss francs of exports leaves Switzerland by air, and one in six francs of imports enters the country by air. Improvements in airfreight thus have a large leverage effect on the country‘s economy. Airfreight is an essential and daily part of Swiss value chains, too. It enables Switzerland to participate in international value chains, as well as to open and secure source and sales markets. Air transport via the country‘s airports allows regionally-based medium-sized enterprises in particular the opportunity to fulfil their customers‘ orders reliably, safely and fast. The country‘s three largest airports – Basel, Geneva and Zurich – are especially important here. In 2008, these airports and their 2 350 air cargo personnel handled over 500 000 tonnes of airfreight and mail. The current infrastructures and efficiency of Basel, Geneva and Zurich airports are reflected in the positive ratings they earn from the Swiss companies surveyed. Airfreight is primarily used for transporting high-value goods, supporting those industries in Switzerland which provide the highest added value and have the highest growth rates. The continued existence of domestic jobs in these industries depends significantly on the efficiency of air cargo: any deterioration in such efficiency would have negative consequences for these industries and their employees. The Swiss population benefits from air cargo not only through its protection of highly-qualified jobs, but also in quality-of-life terms: air cargo ensures the availability of the best products from around the world. This is true for essential needs such as organ transplants, as well as for the supply of consumer goods. Air cargo also helps to maintain a broad and dense network of long- and medium-haul air services for Switzerland and its inhabitants. In fact, cargo to and from the country is mainly transported on passenger flights, and thus contributes directly to maintaining the range of passenger services available to and from Switzerland: without cargo, up to 90% of all long- and medium-haul flights serving the country would not cover their costs. Joachim Ehrenthal Dr. Joerg S. Hofstetter High-value watches, Swiss made. Attracting mobile factors of production into Switzerland is therefore vital to sustaining employment, quality of life and economic prosperity. Switzerland‘s accessibility and its connectivity with international air cargo networks are a prerequisite for most of the Swiss economy. Any deterioration in the efficiency of airfreight in Switzerland threatens not only an outflow of highly-skilled jobs but also the quality of life for large parts of the population. If Swiss air cargo is to continue to strengthen the national economy and safeguard domestic jobs, the overall parameters for airfreight and the infrastructure it requires must be kept continually aligned to the needs of Swiss companies - through forward-looking investments today and constant modernisation tomorrow. 12 INDUSTRY SPECIAL UNIVERSITY ST. GALLEN One-third of Switzerland‘s exports by value leave the country by air, and one-sixth, again measured by value, of all imports enter the country by air. BACKGROUND AND METHODOLOGY – The study involved some 152 industrial and commercial companies and 65 logistics service providers based in Switzerland. These account for 9.25% of all Swiss exports and 25% of Swiss air cargo exports (by value). Over a third of the survey participants come from commerce, automobile manufacturing and the precious metals and jewellery trades. A further 5% of the businesses polled are active in chemicals and pharmaceuticals. The remainder come from a wide variety of sectors. The companies range in size from highly-specialised small and medium-sized enterprises to large corporations. Invitations were mailed to all the relevant customers and cooperation partners of the study‘s supporting companies, the members of Swissmem, SCGI Pharma Switzerland and Swiss Export and the freight forwarders operating in Switzerland. A total of 2 781 persons were contacted, primarily logistics and airfreight managers. The response rate was 7.8%. Alongside the survey, annual Swiss foreign trade statistics were also analysed. Furthermore, standardised interviews were conducted with the major air cargo airlines operating to and from Switzerland, with Swiss airports handling large cargo volumes (Basel, Geneva and Zurich) and with the administrative bodies relevant for air cargo. The Chair of Logistics Management at the University of St. Gallen (HSG-LOG) carried out the ”Air freight as a competitive factor for the Swiss economy“ study under the umbrella of the Center for Aviation Competence (CFAC) of the University of St. Gallen. The study was generously supported by: the Swiss Federal Office of Civil Aviation (FOCA), Cargologic, Dnata Switzerland, Komitee Weltoffenes Zürich, Panalpina, F. Hoffmann-La Roche, Swiss International Air Lines, the Swiss International Airports Association (SIAA), the Swiss Shippers‘ Council (SSC), Swissport and the Zurich Chamber of Commerce (ZHK). INDUSTRY SPECIAL UNIVERSITY ST. GALLEN 13 THE KEY FINDINGS OF THE STUDY: – 1. Air cargo is an essential and daily element of Swiss value chains. 2. 70% of Swiss companies regard airfreight in Switzerland as a basic necessity. 3. One-third of Switzerland‘s exports by value leave Switzerland by air, and one-sixth of all imports, again measured by value, enter the country by air. 4. 61% of the shippers and 44% of the recipients of air cargo expect a substantial increase in their shipments through Swiss airports by 2030. 5. Swiss airfreight is largely transported on passenger flights that would not be profitable without cargo‘s contribution to their overall revenue results. The range of passenger services offered to and from Swiss airports (especially long-haul services) is thus directly linked to air cargo volumes and demand. 6. Most Swiss companies are satisfied with Swiss airports‘ current infrastructure, with the services offered and the value-formoney they provide, and with the regulatory environment regarding night movement and night driving bans. 7. The strengths of air cargo in Switzerland over other European airports are felt to be its handling speed, the possibility of short-notice bookings, the reachability and opening hours of handling agents and the efficient interaction throughout the air cargo chain. 8. The perceived weaknesses of air cargo in Switzerland compared to elsewhere in Europe include the reduced availability of direct flights, insufficient frequencies, the limited availability of full-freighter services and the opening hours of the Customs authorities. 9. Swiss companies wish to see further development of the infrastructure at Swiss airports to improve the handling of air cargo during peak times, and expansion of the capacity for temperature-controlled imports and valuables exports. 10. If Swiss airports fell substantially behind other airports in Europe in terms of their efficiency and the range of services offered, this would have serious consequences for Switzerland. On the basis of the study data, these would include: a. the relocation out of Switzerland of at least 25 000 highlyskilled jobs in industry, commerce and logistics b. a further 163 000 jobs in industry and commerce threatened by relocation c. a poorer supply of basic and consumer goods for the Swiss population d. the unprofitability of up to 90% of the long-haul flights offered at Swiss airports e. resulting losses in tourism due to the more limited accessibility of Switzerland from abroad. AIR FREIGHT VIA SWISS AIRPORTS IS AN ESSENTIAL AND DAILY PART OF SWISS VALUE CHAINS – AIR CARGO VIA SWISS AIRPORTS IS A BASIC NECESSITY FOR SWISS COMPANIES‘ IMPORTS AIR CARGO VIA SWISS AIRPORTS IS A BASIC NECESSITY FOR SWISS COMPANIES‘ EXPORTS 68% 70% essential not essential AIR CARGO VIA SWISS AIRPORTS IS A BASIC NECESSITY FOR THE SWISS ECONOMY AIR FREIGHT IN SWITZERLAND ENABLES THE SPEEDY AND SECURE EXPORT AND IMPORT OF HIGH-VALUE GOODS – AIR CARGO’S SHARE OF SWISS IMPORTS AIR CARGO’S SHARE OF SWISS EXPORTS SCHAFFHAUSEN FRAUENFELD ST. GALLEN DÉLEMONT AARAU HERISAU ZÜRICH APPENZELL SOLOTHURN ZUG LUZERN NEUCHATEL BERN SCHWYZ GLARUS STANS SARNEN ALTDORF CHUR FRIBOURG LAUSANNE SION BELLINZONA 1/3 1/6 value of air freight value of freight on other modes Every third exported Swiss Franc flies Every sixth imported Swiss Franc flies 14 PARTNERS 10 YEARS CARGO HUB ZURICH ZURICH AIRPORT CELEBRATES 10 YEARS AS A CARGO HUB – PARTNERS 10 YEARS CARGO HUB ZURICH 15 On 10 May 2010, ground handling agent Cargologic AG, Flughafen Zürich AG and SWISS hosted an event which gathered the representatives from the Swiss airfreight community to celebrate the tenth anniversary of Zurich Airport‘s cargo hub. Cargologic took over the cargo terminal from what was then Swisscargo ten years ago. With over 30% of all Swiss freight being exported by air (in terms of value), the hub is now a state-of-theart centre for the safe, reliable and rapid shipment of import and export cargo, and plays a crucial role in Switzerland‘s success as a business location. The importance of airfreight in Switzerland was emphasised by Rolf Büttiker, Member of the Swiss Council of States, in his speech at the event. Peter Widmer, Chairman of the Cargologic Board of Directors, Peter Somaglia, Cargologic CEO, Thomas E. Kern, Flughafen Zürich CEO and Harry Hohmeister, CEO of Swiss International Air Lines, provided more information on the value and the future of Switzerland‘s Zurich airfreight hub. Rolf Büttiker, Member of the Swiss Council of States: ”Airfreight is a decisive competitive factor for Switzerland as an industry location. It strengthens the economy and secures jobs. For 70% of companies, the airfreight handling services at Swiss airports are a basic requirement for their products to be shipped to Asia, the Middle East and North America.“ From left: Harry Hohmeister, CEO SWISS, Thomas E. Kern (CEO Flughafen Zurich), Rolf Büttiker (Member of the Swiss Council of States) and Peter Widmer (Chairman of the Cargologic Board of Directors) Harry Hohmeister: ”The Zurich airfreight hub is very important for us. A large number of our medium and long-haul flights would not be profitable without airfreight, or else the tickets would become so expensive as to make flying a real luxury.“ Guests had the unique opportunity to experience the impressive variety of consignments and the implementation of comprehensive safety and security regulations. They also saw freight handling in action as shipments are loaded, and thus witnessed the perfect interplay of a wide variety oflogistics-related factors. A FAST CONNECTION FOR SENSITIVE AND HIGH-VALUE PRODUCTS – The pharmaceuticals and biotech industry has immediately recognised the advantages of the new direct connection between Zurich and San Francisco By Farner Consulting AG CUSTOMERS A FAST CONNECTION FOR SENSITIVE AND HIGH VALUE PRODUCTS 17 At the beginning of June 2010, Swiss WorldCargo inaugurated a new direct connection between Zurich and San Francisco. The new route provides fast and smooth transport services for partners and customers to one of the most important and rapidly-growing markets and biggest cargo gateways in the whole of North America. The city and the surrounding Bay Area are in fact home to many global leaders in the pharmaceuticals industry. Agility Switzerland and Unitrans International Corporation are strategic partners which are specialised in the transport of life science and other GxP ”good practice“ products between Europe and North America. They have aligned and positioned themselves over the past few years to become the number-one provider of tailor-made customer solutions in this industry. Both companies have extensive expertise and experience in the pharmaceuticals and biotech sectors, which rely heavily on temperature-controlled transport. The two companies depend on strategic and best-in-class partners such as SWISS to expand their network to new markets. Agility and Unitrans profit greatly from the new Swiss WorldCargo connection that allows them to leverage Swiss precision and on-time services between Switzerland and the U.S. on a daily basis. On 2 June 2010, Unitrans consigned the first two temperaturecontrolled RKN-T2 containers from San Francisco to Basel via Zurich. The shipment consisted of highly sensitive bulk pharmaceuticals that require consistent temperature conditions of below -20°C. The special containers used for these products allow them to maintain a specific temperature range at all times. The slightest interruption of the cold chain or even a simple time delay can damage these sensitive goods. The new Swiss WorldCargo ”fast lane“ between San Francisco and Basel ensures that all of these requirements are met. In conjunction with the consignment, the empty transport vessels used for this sensitive product are transported back by Agility Logistics Ltd. from Basel to San Francisco (via Zurich). Also on 2 June 2010, Agility loaded the first shipment of ten LD3 containers to San Francisco. The new Swiss connection between Zurich and San Francisco provides temperature and time-sensitive materials and fragile equipment with a smoother and faster route to their destination. ABOUT AGILITY – Agility is one of the world‘s leading providers of integrated logistics to businesses and governments. It is a publicly traded company with close to USD 6 billion in annual revenue and 32 000 employees in over 550 offices and 120 countries. Agility brings efficiency to supply chains in some of the globe‘s most challenging environments, offering unmatched personal service, a global footprint and customised capabilities in developed and emerging economies alike. For more information about Agility, visit www.agilitylogistics.com. Timetable details: Zurich – San Francisco San Francisco – Zurich + the following day LX 38 LX 39 1-34567 1-34567 13:15 19:25 16:30 15:40+ ABOUT UNITRANS INTERNATIONAL CORPORATION – Unitrans has been providing international logistics services since 1977 with a special focus on the pharmaceuticals, biotech, high-value electronics and aerospace industries. Unitrans is a leading provider of transportation, brokerage and logistics services in these specialty markets. For more information please visit www.unitrans-us.com 18 SPECIAL TRANSPORTING THE TUNA TRANSPORTING THE TUNA – How, after being caught using sustainable fishing methods, the fresh yellowfin tuna of Maldives Quality Seafood is freighted from Male to Zurich with the superior handling and efficient express services of Swiss WorldCargo in collaboration with Edelweiss Air. By Silvia Cappelli SPECIAL TRANSPORTING THE TUNA 19 Maldives Quality Seafood: the fish processing facilities Tuna fishing made the headlines last year with the release of the documentary ‘The End of the Line’, which examines the imminent extinction of bluefin tuna, brought on by overfishing due the increasing demand for sushi and sashimi in Western countries. At the time, some press reports implied that all tuna were bluefin, canned, in sushi and in sandwiches. But we have some good news here: most tuna is of the skipjack or yellowfin type, which are both available from sustainable sources – like the tropical waters of the Maldives archipelago. “The use of high-tech fishing methods, including nets, is illegal in the Maldives,” says Roy Schofield, Managing Director of Maldives Quality Seafood, a leading exporter of yellowfin and skipjack tuna which is based in Male. With the local abundance of aquatic life including tuna, grouper, dolphin fish, barracuda, rainbow runner, trevally, squirrelfish and more, fishing is the country’s secondbiggest industry, and employs half the nation’s workforce. And the fishing methods used are still the traditional ones, including pole and line for tuna. This is a selective and therefore more sustainable way to catch tuna, as only fish of a certain size are caught, leaving younger fish to grow to spawning age and thus replenish the stocks. Small bait fish are thrown over the side of the boat to lure the tuna to the surface. The fishermen use the acceleration of the fish as they race to get their prey, hook them and fling them onto the ship‘s flat deck. Fish production in the Maldives was about 100 000 tonnes in 2009, most of which was skipjack tuna. More than 40% of this is exported, largely to Sri Lanka, Japan, Hong Kong, Thailand and the European Union. Fresh, chilled, frozen, dried, salted and canned tuna make up about 90% of all the Maldives’ marine product A fishing boat using the pole and line method exports. Of these, Maldives Quality Seafood currently accounts for some 30 to 50 tonnes of yellowfin tuna exports every month. With 38 employees from different countries, the company started its export operations in August 2009, just as Male was added to the Swiss WorldCargo network thanks to SWISS’s comprehensive collaboration agreement with leisure airline Edelweiss Air, with an average of 1 to 2 tons per flight. “Given the unpredictability of catches, our business relies on two main factors: the availability of last-minute capacity and fast connections,” says Schofield, a seasoned professional who can draw on 30 years of experience. “Air transportation is one of the most critical links in the fresh tuna supply chain. That’s why we only work with carriers that can ensure high-quality handling processes and efficient express services.” “The introduction of a weekly direct connection from Male to Zurich by Swiss WorldCargo and Edelweiss Air has played a key role CARGO A LA PLAYA! – 8 SUNNY NEW DESTINATIONS WORLDWIDE. Here comes the sun! Our network now has eight new dream destinations. Together with Edelweiss Air, we will now also fly your cargo to Cancun, Punta Cana, Puerto Plata, Santo Domingo, Nairobi, Mombasa, Goa and Male. We care for your cargo. SWISSWORLDCARGO.COM SPECIAL TRANSPORTING THE TUNA 21 Swiss WorldCargo in Colombo (Sri Lanka) represented by Baurs Air Service Ltd. Fresh yellow fin tuna ready to be packed and transported by Edelweiss Air. in the success of our business out of the Maldives,” Schofield continues. “The operations are run by the Swiss WorldCargo team in Colombo (Sri Lanka), who are always available to us to find solutions to last-minute handling problems. If it wasn’t for them, most of our shipments would have been a failure, due to the poor handling conditions at Male Airport.” Prior to shipment, each fish is graded for freshness, colour, fat and shape to determine whether it is sashimi-grade or cooking-grade. Unlike frozen fish, for which dry ice can be used, fresh tuna has to be refrigerated with wet ice or gel ice in special containers. Once in Zurich, and further on in Frankfurt, London, Paris, Amsterdam or Milan, it is rushed to the best restaurants by cool truck. Swiss WorldCargo often carries shipments of tuna from other stations, too, such as Johannesburg, Muscat and Barcelona via Zurich to Tokyo Narita. If speed – through fast transfer times – is by far the greatest benefit offered by SWISS’s airfreight division, Swiss WorldCargo also ensures optimum transportation conditions that include proper packing and temperature control throughout the journey and special storage at the cargo premises of the departure and transfer airports. Timetable and further information at www.edelweissair.ch or www.swissworldcargo.com How can I buy sustainably-caught fish? Identifying which fish come from sustainable sources is extremely difficult. Because of the difficulties in accurately estimating fish populations and because it is very difficult to trace the supply of fish from the ocean to the shop, there is no widely used truly effective “green label” that consumers can look for on fish products, as there is for example with wood products (the FSC logo). Always asking the person you buy fish from where and how their fish are caught is a good general rule. Otherwise look out for the MSC Logo (msc.org) which is recommended by WWF. How can I find out more about the state of global tuna stocks? The International Seafood Sustainability Foundation, a global partnership among leaders in science, the tuna industry and the WWF, undertakes science-based initiatives for the long-term conservation and sustainable use of tuna stocks, reducing bycatch and promoting ecosystem health. The ISS Foundation compiles comprehensive reports which are available at http://www.iss-foundation.org The End of the Line “The End of the Line“, the first major feature-length documentary to reveal the impact of overfishing on our oceans, had its world premiere at the Sundance Film Festival in the World Cinema Documentary Competition in 2009. Filmed over two years, the documentary follows investigative reporter Charles Clover as he confronts politicians and celebrity restaurateurs who exhibit little regard for the damage they are doing to the oceans. INFO GUIDE 23 FROM BLOGISTICS THE AIR CARGO BLOG BY OLIVER EVANS WHEN LIN GOA LAX CLA RID TYE – Remember the enthusiastic New York Times article at the end of January, conveying how globalisation would still be a lame duck without the speed and precision of air cargo? And the positive turn recently taken in the discussion on night flight regulations in Germany? No? Finally, some cargo executives are getting their voices heard (and their messages understood). Finally, we managed to get this topic onto the agenda of IATA at our last global meeting in Vancouver in March. Finally, we discover that we have a greater wealth of different communication channels to choose from today than we have ever had before. Me neither. Actually, none of the above happened (or anything in that general direction). And maybe, just maybe, we are about to realise how often we actually sound (and especially write) more like Martians with a severe hiccup. It is obvious: we as an industry are not very good at making our point - with the press, with politicians or with our own airline CEOs, let alone the public. Did I make myself clear? TKS for TNGN in, But why is our voice not heard? Oliver Well, just listen to it: we say (for instance) that ”IATA is liaising with TIACA, FIATA and the WCO to ensure that the CCSP imposed upon our industry by the US government can be implemented smoothly. Furthermore by means of C2K we are exchanging shipment quality data so that our FWB, RCS, DEP (which is FAP) and RCS are fully transparent.“ Jargon is all well and good, and shorthand makes for streamlined communications. But we have developed a fully-grown forest of acronyms, three-letter codes and abbreviations - all the while wondering why the heck it is so difficult to convey essential explanations of issues within our own industry, let alone to outsiders. The truth is, the more we try to explain, the less intelligible we are. And airline CEOs, politicians and journalists don‘t have too much time or patience to listen to us. So are you still wondering why we remain the hidden, forgotten engine of world trade? Yes there is hope. Visit swissworldcargo.com/blogistics and check out the new look & feel and improved functionality! Find Swiss WorldCargo on Facebook and Twitter Forwarding sharp analysis to the smart executive INFO GUIDE 25 LUFTFAHRT OHNE GRENZEN SCHWEIZ: AN ”AID TRAVEL AGENCY“ – Overcapacities and unused flown cargo space are a constant issue with any airfreight carrier. The Luftfahrt ohne Grenzen Schweiz association aims to liaise between the transporters and various aid and relief organisations, to marry the former‘s spare capacities with the latter‘s transport needs. Overcapacities and underutilised production are a bane of any transport company, be it a railway, an airline or a waterborne operation. And it was to make optimum use of these spare capacities that Luftfahrt ohne Grenzen Schweiz (literally ”Aviation Without Borders Switzerland“) was formed. The association, which is also supported by Swiss WorldCargo, aims to establish a network of regular transport partners to whom it can turn whenever aid needs to be shipped to a developing region - not only in the wake of a natural disaster, but for longer-term relief and development projects, too. Founded in October 2008, Luftfahrt ohne Grenzen Schweiz has set itself the objective of acting as a hub between aid and relief organisations and the transport companies. The association is part of a network of like-minded entities based in various European countries; and it collaborates particularly closely with Luftfahrt ohne Grenzen e.V., one of Germany‘s best-known humanitarian organisations. Luftfahrt ohne Grenzen Schweiz aims to serve as a kind of ”travel agency“, marrying the demand among aid and relief organisations for low-cost transportation with the empty space available on existing flights, or looking elsewhere for the most reasonable shipping terms. It‘s a role that should benefit all the parties involved: the transport providers, who can make meaningful use of their excess capacity and devote it to humanitarian causes, and the relief organisations, who no longer need to search for their transport partners themselves, and have a good chance of getting their supplies to their destinations for less. TRAXON EUROPE: STANDARDISING PROCESSES FOR SWISS – For almost a decade now, Swiss WorldCargo has relied on TRAXON Europe for messaging services that are tailored to the airfreight industry. Host-to-host (EDI) messaging facilities are an integral part of Swiss WorldCargo‘s service offering. SWISS‘s airfreight division is continually optimising its electronic services in collaboration with suppliers to help simplify the cargo forwarder‘s working day. Continuing efforts to reduce paperwork are good for the environment, too. Eindrücke vom Januar 2010 aus Haitis Hauptstadt Port-au-Prince nach dem schweren Erdbeben (Quelle: Diakonie Katastrophenhilfe) Luftfahrt ohne Grenzen Schweiz is still in its early phases. The association is currently looking for aid and relief organisations with a need for transport capacity, and for transportation partners who are willing to get involved in humanitarian work. It is also seeking members and sponsors to finance its own activities: its executive committee is currently working on an entirely voluntary basis. Luftfahrt ohne Grenzen (CH) Kempterstrasse 5, 8032 Zurich Phone +41 (0)44 380 0045 info@luftfahrtohnegrenzen.ch www.luftfahrtohnegrenzen.ch HELPING HAITI – Following the Haitian earthquake in January of this year, Luftfahrt ohne Grenzen Schweiz helped enable six members of two Swiss-based relief organisations to travel to the neighbouring Dominican Republic. This was followed a few days later by the shipment of ten tonnes of medical supplies from the Humedica organisation. The costs of the tickets and the airfreight shipment were met by Edelweiss Air. Easy-to-access cost-effective EDI messaging also helps to advance the cause of two air cargo initiatives promoted by Swiss WorldCargo and TRAXON Europe: e-freight and Cargo 2000. Since February 2009, SWISS has performed e-freight-compliant transactions on various trade lanes. With TRAXON Europe, which has been Swiss WorldCargo‘s exclusive provider of EDI messaging since 1 May, Swiss WorldCargo aims to make its increasingly standardised processes faster and more streamlined. TRAXON‘s worldwide network ensures a stable interchange of messages between logistics partners and the air cargo carrier. The services provided cover e-booking, air waybill data transfer, status information and consolidation list transmission for Customs. The partnership is delivering greater cost-efficiency for Swiss WorldCargo, too. 26 INFO GUIDE THE SWISS TRANSPORT MUSEUM IN LUCERNE REOPENED ITS AVIATION & SPACE TRAVEL HALL. AMONG THE MANY HIGHLIGHTS OF THE TOTALLY-REFURBISHED MUSEUM SPACE IS A NEW EXHIBIT ALL ABOUT SWISS – This year‘s 100th anniversary of the beginnings of Swiss aviation has proved reason enough to totally revamp the museum‘s existing aviation and space travel displays. As a result, while existing exhibits (many of them offering their own testimony to the story of Swiss aviation over the years) have been carefully retained, they have now been joined by numerous new attractions. SWISS, as one of the prime partners in the centennial celebrations, has made a special contribution to the new-look museum. The Aviation & Space Travel Hall now boasts an attractive exhibit enabling visitors to experience Swiss air travel today. The exhibit consists of a full-size fuselage cross-section from an Airbus A340, a Business Lounge and a replica cabin section, allowing the visitor to enter and enjoy the SWISS airline world. The overall aim of the refurbishment and the new displays is to tell the story of Swiss aviation, and underline the importance of air travel now and in the future, to the broadest possible public: young and old, and families, schools and further groups alike. CUSTOMER SATISFACTION SURVEY 2010 – All the results will be soon available on swissworldcargo.com Most common associations with Swiss WordCargo (open comment): PRECISION (34) EXCELLENT/GOOD SERVICE (364) RELIABILITY (253) PUNCTUALITY (53) QUALITY (75) VISIT SWISSWORLDCARGO.COM AND WIN... – Get on swissworldcargo.com/Cargo Matters and find out how to win an A340 model with the exclusive ”flower power“ livery Terms and conditions: All participants must fully state their first name, last name, company, function, mailing address and email address to take part. The winner will be informed directly, and their name will be published in the next issue of Cargo Matters. Employees of Swiss International Air Lines Ltd. (including Swiss WorldCargo’s GSAs) and their relatives may not participate. All rights are reserved, and there shall be no recourse to any legal action. AND THE WINNER IS.... – The watch offered in out last issue‘s contest was won by Balasubramaniam Parameswaran from Hellmann Worldwide Logistics India Pvt Ltd INFO GUIDE 27 Claudia Moerker, Managing Director, Swiss Export Association SWISS EXPORT DAY – SWISS EXPORT: SUPRANATIONAL EXPERTISE – The 6th Swiss Export Day was held on Tuesday 1 June at Veranstaltungshalle Stahlgiesserei in Schaffhausen. The highlights of this year‘s event, which went under the motto of ”Create Global Visions“, included a presentation by Ernesto Bertarelli, entrepreneur and president of the Alinghi sailing team, on the occasion of team‘s tenth anniversary, and a speech by Yves Serra, CEO of Georg Fischer AG, on his company‘s visions and plans. The event, which was held in Schaffhausen and attracted over 450 attendees, was moderated by Reto Brennwald of Swiss TV. The varied programme (which included a visit to Georg Fischer Piping Systems‘ production facility), the structured exchanges of views and experiences at the special lunches and the breathtaking crane-hook acrobatics of the Duo Tr‘espace all offered substantial food for thought and discussion at the event itself, the information fair and the ”export lounge“. All in all, this latest Swiss Export Day was another out-and-out success. The Swiss Export Association has developed into Switzerland‘s biggest private export promoter since it was established in 1973. The association is constantly realigning its products and services to changed, changing and future export market needs. Swiss export actively promotes export activities of Swiss companies and represents the medium-sized export industry and their interests towards authorities. In particular, Swiss Export is able to offer effective support for a systematic, consistent conception and implementation of market strategies. Also, members of Swiss Export have the opportunity to use the platform to advertise their products or as a forum for an exchange of experience. Among other things, Swiss Export services include: Training and professional development: for decades, Swiss Export has been the leading provider of seminars and courses with respect to foreign trade. Export consulting: Swiss Export has at its disposal a large network of correspondents, and is guarantor of affordable export consulting. Publications: Swiss Export publishes the swiss export journal, a Swiss journal of foreign trade, and the „swiss exporter“, a bulletin for members issued once a month. Internet: Through www.swisstrade.com, Swiss Export offers an attractive opportunity for enterprises to gain world wide presence by means of multilingual listing. For further information on markets, events and membership, please visit www.swiss-export.com. To arrange a personal consultation, feel free to call on +41 (0)44 204 3484 or mail at info@swiss-export.com The Swiss Export Association Staffelstrasse 8 CH-8045 Zurich www.swiss-export.com ALL YOUR CONSIGNMENTS. IN EVERY DIRECTION. AT ONE GLANCE. –You‘re just a click away from a real-time update on how your freight navigates the world. With our online tracking system at swissworldcargo.com SWISSWORLDCARGO.COM INFO GUIDE 29 ORGANISATIONAL CHANGES AT SWISS WORLDCARGO – Area Management Asia, Middle East & Africa Tod Mawhinney has been appointed to succeed Edwin Cheung (who will retire at the end of the year) as Regional Cargo Manager Far East based in Hong Kong. As a consequence thereof, a job swap will be effected between European Area Management and Intercontinental Area Management, and Alain Guerin will take over Sales & Marketing Europe, based in Zurich. Vasco Furtado, Country Manager Saudi Arabia, Bangladesh, Pakistan & Sri Lanka, retired in June. Area Management The Americas The addition of San Francisco to the SWISS network has brought both opportunities and additional challenges for our cargo organisation. Dennis Crasto has taken over as Regional Manager Northwest USA. Dennis is supported in his new capacity by Mary Oborn (Account Manager) along with Frances Walker and Daniel Frankal (Inside Sales & Reservations). Rene Brechbuehl has assumed the position of Marketing Manager Americas. He comes to his new position from Cargo Accounting, which he successfully managed for over 12 years. Heide Giraldi, Rene‘s previous deputy, now has the responsibility of overseeing Cargo Accounting Americas. In Montreal, Youssef Terouz has joined our Inside Sales & Reservations team. From top clockwise: Tod Mawhinney, Alain Guerin, Bernd Maresch, Dieter Vranckx Management team and Central Services Group Dieter Vranckx, Managing Director Asia, Middle East & Africa, will be leaving the company to become Regional Director USA Midwest & Canada at Lufthansa Cargo. He assumes his new duties on 1 September. Bernd Maresch, currently Director of Marketing & Strategy, will be leaving Swiss WorldCargo on 1 October to become actively involved in his own business. Further details about the reorganisation of CSG will follow soon. Big Dreams don’t need big budgets If your marketing budget vanishes into thin air, it’s time to call us. 6SHFLDOLVWVLQWKHDYLDWLRQÀHOGZHZLOOWXUQ\RXUGUHDPVLQWRUHDOLW\ ZZZPDUNHWLQJG\QDPLFVFKI Phone +41 43 812 49 50 !IRFREIGHT,OGISTICS!&,ISAUNIQUEMONTHLYMAGAZINEWHICH OFFERSAIRLINESSHIPPERSFORWARDERSAIRTERMINALSANDLOGISTICS PROVIDERSTHROUGHOUT4HAILANDTHECHANCETOBETHEFIRSTTOGETHOLD OFCRUCIALAIRFREIGHTLOGISTICSNEWS%VERYISSUECOMBINESESSENTIAL INFORMATIONONLOCALANDINTERNATIONALEVENTSWITHDEVELOPMENTSIN )NTRA!SIANAND!SIANGLOBALTRADEASWELLASINTERVIEWSWITHKEY FIGURESFROMTHEWORLDOFAIRCARGO WWWAIRFREIGHTLOGISTICSCOM GE478?B:<FG<6FF<4@-G;4<?4A7°F?847<A:?B:<FG<6FCH5?<F;8E 7E2EACH4HE4HAI,OGISTICS-ARKET,IKE.O/THER#AN !S!SIANTRADECONTINUESTOEXPANDATUNPARALLELEDRATES4HAILANDHASBECOMEAREGIONALLEADERCOMBININGHIGHLYVALUED EXPORTSWITHTHEPURCHASINGPOWERTODEMANDGOODSFROMALLOVERTHEGLOBE3INCE4RADE,OGISTICS3IAMHAS PIONEEREDTHEPUBLICATIONOFSHIPPINGANDLOGISTICSNEWSIN4HAILANDPUBLISHINGINTHECOUNTRYSNATIVELANGUAGETODIRECTLY TARGETTHE4HAIMARKETINAWAYTHATOTHERTRADEPUBLICATIONSSIMPLYCANNOTMATCH &OR-ORE)NFORMATION0LEASE#ONTACT 4RADE,OGISTICS3IAM,TD4ELEMAILDWIGHT LOGISTICSMANAGERCOM 0UBLISHEDTWICEAMONTH,OGISTICS-ANAGER,-MAGAZINEIS 4HAILANDSONLYLOCALLANGUAGESOURCEOFINTERNATIONALLOGISTICSNEWS 7ITHANINTERNATIONALLYRECOGNIZEDCIRCULATIONAUDITFROM"0! ,-HASADIRECTLYREQUESTEDANDCOMMITTEDREADERSHIPAMONGST 4HAILOGISTICSPROFESSIONALSFORWHOMOURSEAFREIGHTNEWSSHIPPING SCHEDULESINTERVIEWSANDINDEPTHFEATURESAREAMUSTREAD WWWLOGISTICSMANAGERCOM PIC MISSING TIME TO SWISS YOUR CARGO – People say a lot of things about the Swiss: that we have a penchant for perfection. That we are obsessed with quality. That our reliability borders on stubbornness. And what do we say in reply? We say it’s all true. Which is why, with us, your cargo is in the best possible hands – from storage and transportation up until the moment it arrives, right on time. Because no matter which of our 150 destinations your delivery is headed for – our Swiss values will be on board too. We care for your cargo. SWISSWORLDCARGO.COM