Monday, August 8, 2005

Edition 2 Issue 4 

 The Europeans are coming!

 Magaya Corporation Sponsors Air Cargo Americas

 Reduced global economic activity reflected in freight slowdown
 Trans-Pacific Challenges
 DHL Expands world logistics leadership into the Americas
 American Airlines Unveils First Phase Of New $1.1 Billion Terminal At    JFK Airport
 Driver shortage projected to continue
 Amerijet expands, relocates Midwest regional cargo facility at O’Hare    International Airport

 Please send us your comments, questions and suggestions

We are delighted to announce that Air Cargo Americas (ACA) will welcome twelve major European airports to the show. On the 2005 exhibition floor, you will meet executives from:

Reserve Your Space
Secure your exhibition space. Visit www.aircargoamericas.com, call 305-871-7910 or email rberrios@worldtrade.org.

We are very excited to be joined by Dr. John D. Kasarda for the UPS-sponsored luncheon session on Wednesday, October 26th. Dr. Kasarda is the Director of the Kenan Institute of Private Enterprise at the University of North Carolina. He will share his extensive knowledge on the topic: “What are the Major Issues Facing the Air Cargo Market?” Dr. Kasarda is internationally recognized as one of the best forecasters of trends in the aviation and air cargo industries. He is considered the leading developer of the aerotropolis concept, which defines the role of aviation and airports in shaping 21st century urban growth and form. Tom O’Malley, Vice President of Cargo Sales for Latin America, UPS Air Cargo, will introduce Dr. Kasarda.

Magaya Corporation is a software development company providing the highest quality software solutions to the transportation industry, including international freight forwarders, consolidators, warehouse companies, domestic airfreight, inbound deconsolidating, agents at destination, N.V.O.C.C.s and large export companies. Magaya Corporation is headquartered in Miami, Florida, and has strategic offices and distributors around the globe. Magaya serves more than 200 customers with over 1,500 users in 26 different countries. The company provides logistics software in English, Spanish and Portuguese.
The company believes that its Magaya Cargo Systems product has what any company needs to become fully automated—from a small one-man operation to a large multinational organization with multiple offices. For more information on the products provided by the company, visit www.magaya.com.

Reduced global economic activity reflected in freight slowdown
The International Air Transport Association (IATA) recently released traffic results for the first half of 2005 (January to June). The reports show 8.8% growth in international passenger traffic and 3.4% growth for international freight. "The story for the first half of the year is cargo. Compared to 13.2% growth for the first half of 2004, the 3.4% freight growth for the same period in 2005 indicates that extraordinary fuel prices are softening international trade," said Giovanni Bisignani, IATA's Director General and CEO. Cargo experienced negative growth in both February and May of this year. (IATA release, 7/28/05)

Trans-Pacific Challenges
Expanded aviation treaties between the United States and both China and India in the last 12 months have spurred increases to the already rising volumes of cargo traveling trans-Pacific routes. The interconnectedness of the U.S. and the Asian-Pacific countries is growing each day. Six of the United States' top 10 trading partners are Asian economies and China is now the top U.S. trading partner. The recent treaties will spur new airline route opportunities, which means more operators and shippers moving even larger volumes of cargo. However, with these expansions come elevated challenges. Key players in the sector have begun to wonder if infrastructure in the United States and Asia-Pacific nations will be able to keep up with skyrocketing levels of trade. In a speech last month in northern California, U.S. Transportation Secretary Norman Mineta warned that trans-Pacific "transportation links are being stretched to their limit" and that the time when infrastructure may no longer be able to handle demand is "bearing down on us." He urges that the capability of nations’ airports and supporting infrastructures be considered when aviation treaties are negotiated. (www.aircargoworld.com, 7/29/05)

DHL Expands world logistics leadership into the Americas
DHL, the world's leading express and logistics company, announced the expansion of DHL Solutions into the American marketplace. The company will now provide customized, single-source supply chain management for companies operating in the US, Canada and Latin America. "DHL creates added value for our customers by offering them a complete range of contract logistics services designed for their unique needs, combining the best solutions from our global operations," said Reinhard Rank, General Manager of DHL Solutions Americas. He adds, "Our ability to leverage our success and expertise in Europe allows us to incorporate best practices in logistics into the Americas market." Leveraging DHL's vast global presence in 220 countries and territories, DHL Solutions Americas will tailor supply chain management solutions for companies operating in the US, Canada and Latin America. Headquartered in Plantation, Florida, DHL Solutions has regional presence in the United States, Canada, Brazil, Mexico, Central and South America as well as the Caribbean. (DHL Release, 8/01/05)

American Airlines Unveils First Phase Of New $1.1 Billion Terminal At JFK Airport
On July 27th, American Airlines dedicated Phase I of a new, state-of-the-art $1.1 billion terminal at John F. Kennedy International Airport. "This terminal represents one of the biggest, boldest -- and most expensive -- projects in American Airlines history. It underscores our commitment to JFK and our determination to preserve its status as one of the world's premier domestic and international gateways," remarked Gerard J. Arpey, American's chairman and CEO. American's new terminal, the largest facility at JFK Airport housing a single airline, was designed to provide the most convenient and comfortable travel experience possible. In the past decade, American has invested in more airport facilities in the New York area than all other airlines combined. Arpey dedicated the terminal to the men and women of American Airlines. He remarked, "New York is home to 8,500 members of our team. And our billion-dollar plus investment in this terminal affirms -- not just our belief in New York and its future-- but also the faith we have in our people, and our pride in the care they provide our customers every day." (American Airlines release, 7/27/05)

Driver shortage projected to continue
According to James Haughey, Director of Economics for Logistics Management, the chronic truckload driver shortage in the U.S. is poised to cause more serious cost and capacity problems for shippers over the next two years. Indicators show that the current situation may be similar to the driver crisis of 1999-2000 that largely affected the shipping industry. However, Haughey remarks that the problems now facing shippers will be different than those of 1999-2000 since fuel costs are falling instead of rising, and driver earnings still have not recovered from the impact of the last recession. Several large carriers have boosted wage earnings for drivers 8-10 percent over the last six months to combat the crisis and fleet mangers are expected to increase wages even more in 2005-2006. Global Insight recently conducted a study for the American Truckers Association (ATA) that projects an annual driver wage increase of 7-8 percent through 2007. Despite efforts to raise wages and increase retention, ATA reported that the driver turnover rate in the last quarter was over 100 percent; fleet owners are continuing the scramble to recruit drivers. (Logistics Management, 7/1/05)

Amerijet expands, relocates Midwest regional cargo facility at O’Hare International Airport
Global cargo transportation provider Amerijet International, Inc. has relocated and expanded its Midwest Regional Office to a full-service, multi-modal cargo handling facility just outside of the airport grounds, announced Jess Prieto, Amerijet’s Midwest Regional Manager. The facility provides a total of 10,000 square feet of dedicated space, comprising offices, customer service and cargo receiving areas, warehouse space, two dock-height ramps and one drive-in ramp. “This expanded facility allows us to provide total transportation solutions to our customers,” said Prieto. Amerijet’s Midwest Regional Office manages cargo moving to and from 13 U.S. states, including Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, Ohio and Wisconsin. Amerijet operates a fleet of Boeing 727-200 aircrafts from its primary hub at Miami International Airport. (Amerijet Release, 7/11/05)

Would you like to comment on an article we've written? Do you have an opinion you'd like to share on an important industry issue? Would you like information on booth reservations? Call 305-871-7910, email rberrios@worldtrade.org or visit www.aircargoamericas.com