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ATSG: UPDATEMAERSK: QUIET DAY DHL: ROBOTICSCHRW: ONE CENT CLUB UPDATECAT: RISING TRADEEXPD: TRUMP TRADE LOSER LINE: PUNISHEDMAERSK: RELIEF XPO: TRUMP TRADE WINNERCHRW: NO JOYUPS: STEADY YIELDXPO: BUILDING BLOCKSHLAG: BIG ORDERLINE: REACTIONLINE: EXPENSES AND OPERATING LEVERAGELINE: PIPELINE OF DEALS
ATSG: UPDATEMAERSK: QUIET DAY DHL: ROBOTICSCHRW: ONE CENT CLUB UPDATECAT: RISING TRADEEXPD: TRUMP TRADE LOSER LINE: PUNISHEDMAERSK: RELIEF XPO: TRUMP TRADE WINNERCHRW: NO JOYUPS: STEADY YIELDXPO: BUILDING BLOCKSHLAG: BIG ORDERLINE: REACTIONLINE: EXPENSES AND OPERATING LEVERAGELINE: PIPELINE OF DEALS
Howard Davies’s Airports Commission is considering the UK’s urgent lack of airport capacity only from the passenger perspective, Chris Welsh, director of global and European policy at the Freight Transport Association, told Multimodal’s first air freight seminar, organised in conjunction with The Loadstar, yesterday.
Almost 40% of UK imports and exports are transported by air, but cargo’s interests were getting “swamped” in what was turning into a highly politicised debate, Mr Welsh said.
Few companies were prepared to put their heads above the parapet and comment on the issue, fearing they would be accused of being anti-environment, he added.
In a report to the commission, the FTA emphasises London Heathrow’s crucial hub role – “a fact not recognised by Davies”, Mr Welsh said.
“Heathrow needs major investment or, if a new airport is to be built, it should be something comparable. It’s not an option to disperse [cargo] all round the country – although we don’t have a problem with regional airports growing.”
Heathrow has almost 200 scheduled services, and more than 95% of cargo moves through the airport in the bellies of passenger aircraft, said Mr Welsh.
“Few outside the industry understand this close correlation.”
Pictured at the first air freight seminar at Multimodal 2014, are (from left) The Loadstar Editor Alex Lennane, Chris Welsh, Sian Thomas, Grant Liddell and Tristan Koch
However, it is nearing saturation point, which is concerning customers in the life sciences industry, the express sector and movers of aircraft spare parts, among many others.
Sian Thomas, from the Fresh Produce Consortium, told the seminar that foodstuffs from green beans to mangoes depended on a fast and efficient supply chain as they were already bagged and date-stamped in their country of origin.
“We’ve got to work with airports to minimise delays, bearing in mind exacting standards of supermarkets,” she said.
Tristan Koch, managing director of cargo sales in the Emea region for American Airlines, said: “No one argues with the need for new infrastructure, but how do you get the government to deliver?
“The rail industry has made a strong case for HS2, and it seems that those who shout loudest get what they want. I can’t see a strong, cohesive presence from this industry. It needs to be more visible.”
Grant Liddell, business development director of forwarder Metro Shipping, believes the problem is one of perception.
“No one likes to boast about how much air freight they do,” he said. “Retailers feel it is ‘ungreen’ and the consumer may think [flown] goods are overpriced.”
Billions had been invested in new ports, said Mr Liddell, but there had been no similar impetus from airports. If Heathrow was constrained by the houses surrounding it, he argued, alternatives further north must be considered.
Graeme Ferguson, commercial director of Manchester Airports Group, was in strong agreement. The FTA report to Davies was “so skewed”, he said, “I thought Heathrow had sponsored it.”
Mr Welsh said industry had coalesced around one main hub, and the situation was not unique to the UK.
Mr Koch agreed: “More cargo on our outbound flights is of non-UK origin than UK, so the hub role is crucial.
“But we’re putting barriers in the way. We’re falling behind improvements in Europe, such as expedited customs processes.
“Many customers only use air freight when they have to. It needs to be cheaper and faster – and service quality needs to go up.”
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