INDONESIAN Chamber of Commerce seeks delay in strict AIR CARGO screening

THE Indonesian Chamber of Commerce and Industry has called for further six-month postponement of a new cargo inspection process at international airports, saying lack of infrastructure and manpower will cause bottlenecks, reports the Jakarta Globe.

Ahead of the planned commencement of the cargo inspection process next week, Indonesian Chamber of Commerce and Industry chairman Suryo Bambang Sulisto said companies were not ready.

"There are only four cargo inspection agents handling 900 tons of merchandise per day. This will cause bottlenecks in airports, not to mention additional fees," said Mr Sulisto.

The regulation, designed to improve security surveillance at the urging of the International Civil Aviation Organisation, was first implemented in July at Soekarno Hatta International Airport. Packages are to be inspected individually, incurring an additional fee of 10 to 14 times the normal rate of IDR60 (US$0.007) per kilogramme.

When the system was implemented, chaos immediately ensued. A long backlog developed of cargo waiting for inspection, prompting cargo forwarding companies to strike, said the report.

Hundreds of tons of cargo, including newspapers, medicines and even human remains awaiting repatriation were stranded, incurring losses estimated in the billions of rupiah.

Hundreds of workers staged a one-day rally to protest the regulation that stipulated that only three companies - Duta Angkasa Prima Kargo, Gita Afian Trans and Fajar Anugerah Sejahtera - would be responsible for security screening of cargo shipments.

source; Shippingazette.com / picture: google.com

APL operates KODAK Cold Room Facility In India

APL Logistics has started running Kodak's Central Distribution Center in Mumbai, India. This houses a newly installed cold room facility for temperature-sensitive products.

APL Logistics converted a bare room into the 38,000-square feet high-tech facility after winning the contract to design, build and operate Kodak's new distribution center supplying to the domestic Indian market. Products being stored and disseminated out of this facility include digital cameras, photographic papers, motion picture films, digital printing plates and plate setting equipment, as well as chemicals.

"We're pleased to have delivered well against Kodak's stringent requirements," said Siddharth Adya, APL Logistics managing director for South Asia. "This demonstrates our capability in engineering as well as excellence in implementation."

Designed by APL Logistics solution engineering experts, the facility is unique because it has three different cold rooms of varying temperatures: ambient, 13 degrees and 21 degrees Celsius. To ensure that the facility runs at an optimal operational efficiency, the team has worked advanced cooling technologies and thermodynamics principles into its design. Kodak also required APL Logistics to migrate the operations from a former premise to the new one without disrupting its supply chain activities.

For a seamless data interface, APL Logistics has integrated its proprietary Warehouse Management System with Kodak's SAP system. This gives Kodak greater visibility over its inventory and greatly improved its accuracy in decisions.

Kodak India was established in 1913. Today, it is a leader in imaging, offering digital products and services for commercial and consumer use.

source: logasiamag.com

LAO Airlines buy two Airbus A320

Lao Airlines, the national airline from Laos, signed a contract with Airbus Industry to purchase two A320 aircraft types.

Lao Airlines will fly the A320 to connect Vientiane with a number of major destination countries in Southeast Asia, including Jakarta.

Somphone Douangdara, President of Lao Airlines, said the A320 will have a layout for the two classes of passengers with a capacity of 126 passengers in main cabin.

In addition, said Somphone, Business class will be able to accommodate16 passengers. "With the A320, Lao Airlines will introduce a higher level of premium service as we expand our international route network," he said. According Somphone, Lao Airlines will be acquiring passenger comfort guarantee to fly. Moreover, he added, Lao Airlines will also get the benefits of low operating costs of modern A320 aircraft and saving fuel.

John Leahy, Airbus Chief Operating Officer responded positively to the presence of Lao Airlines as a new Airbus customer. "With these reservations, Lao Airlines joined other global customers, the owners of the best-selling line of single-aisle aircraft in the airline industry," he said.

A320 aircraft, according to John, preferred by passengers because of the general operational costs are relatively low. John added a series of A320 Family aircraft have been recognized as the benchmark single-aisle aircraft quality.

"Almost 7,80 of Airbus A320 Family aircraft have been sold and more than 4.700 aircraft had been delivered to more than 330 airlines and airline operators around the world. This is a series of best-selling single-aisle aircraft in the world, "he concluded.

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Worsening debt crisis, INDONESIA's EXPORTS to Europe will stagnate

Ministry of Industry worrying the European Union financial problems will affect the Indonesia export to Europe. Because, Greece's debt problems spread to other countries in Europe which has the potential to expand the region's financial crisis.

"For me Europe is not too optimistic. Especially if you look at the debt structure of large countries," said Director General of International Cooperation Ministry of Industry Industry, Agus Tjahayana.

According to him, Greece's debt problems will be difficult to prolonged unresolved because the three countries, namely Germany, France, and Britain is expected to help bail out Greece's debt was in trouble. In fact, Germany was difficult to expand its export market as China slammed aggression. "The possibility of its condition deteriorated," he said.

In fact, Indonesia's exports to the EU during the period 2007-2010 recorded an average increase of 9%. That number exceeds the import of industrial products from Europe which reached 8%. In 2010 Indonesia's trade balance with the EU surplus of U.S. $ 4.5 billion.

The amount was donated processed coconut or palm oil with a market share of 20%, textiles and textile products 14.5%, electronics 10.5%, 10.5% of processed rubber, and footwear or shoes 8%.

In fact, certain products have increased sharply as exports of other chemical products rose 147%, 59.4% of other commodities, cigarettes rose by 28.7%, and sports equipment 26.5%.

Unfortunately, the market penetration of industrial products to the EU is still relatively low with an average of about 0.5%. It is actually according to Agus could be an opportunity to expand market share of Indonesian exports. However, the region's financial condition would likely delay the planned expansion of Indonesia's exports.

"It is possible that down then the condition will remain stagnant because Europe needs these commodities," he said.

As with the financial problems the United States. According to Agus, the condition of the country was not too worried because the position of United States economic growth which is growing despite the crisis.

Country's internal political problems that make the financial problems the United States as unresolved. However, he believes, the country will find the solution of the problem.

As a result, most likely the United States - Indonesia trade will be stagnant for some time. Even if rising then the condition is a result of the appreciation of the yuan currency, the rupiah (IDR), Singapore dollar, ringgit, baht and peso. "The effect would be all for all countries for the same commodity," he said.

Indonesia Trade Minister Marie Elka Pangestu also ever mentioned her concern at the condition of the European Union's financial problems. "Compared to the United States, we are more worried about conditions in Europe," she said.

To maintain the level of Indonesia exports due to the decline in market share in both areas, Marie expressed, should be done by enhancing competitiveness, increasing diversification of export markets, and minimize the high cost.

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Prospects darken for CSAV as July box volume slips 2pc to 264,200 TEU

CHILEAN carrier Compania Sud Americana de Vapores (CSAV) has announced a two per cent year-on-year decline in container throughput to 264,200 TEU in July.

This was the lowest monthly volume posted since June 2010, a situation blamed on weak rates and markets, which induced CSAV to abandon long-haul strings two months ago.

The big factor in the decline, reported Paris-based maritime consultancy Alphaliner, was CSAV's withdrawal from the Far East - US west coast trade in June, when the ASIAM service was suspended.

In March, CSAV had already withdrawn from the Far Ear-US east coast trade. CSAV also withdrew two services in July, the Far East-West Med, or the Mare Nostrum Service, and the NACSA Mexico-WCNA service.

CSAV also combined its India-Europe (IMEX) service within joint services with MSC, under a wider rationalisation programme with the Geneva-based carrier.

CSAV has also stripped away tonnage from 588,000 TEU in March to 494,000 TEU today. Since embarking on an aggressive strategy in 2009, CSAV's global ranking had climbed from 16th to seventh, but has since slipped back to 10th. CSAV suffered a net loss of US$186 million for the first quarter of 2011 and is expected to announce a negative result when it releases its second quarter report later this week.

source: Shippingazette.com

INDONESIA AirAsia international flight move to Terminal 3

Planning of Indonesia AirAsia (IAA) to bring together domestic and international flights in Terminal 3 of Soekarno Hatta Airport closer to reality. In the near term, PT Angkasa Pura (AP) II will provide a license to use the terminal 3 for the entire flight operation of IAA.

"Beginning next September we have been granted permission to IndonesiaAirAsia to operate in the terminal 3. Later planned to co-exist with other airlines such as Wings Air and Mandala Airlines that still wanted to fly," said Managing Director of AP II, Tri S Sunoko in Jakarta.

Director of operations and Techniques AP II, Salahuddin Rafi said, IAA international flight operations transfers made ​​to reduce the burden of international flights at the terminal 2 which is quite high. "International flight of Indonesia AirAsia is not much. But at least to reduce the existing burden, and could facilitate the IAA itself," said Rafi.

According to him, the capacity of Terminal 3 have been yet used to the maximum is 4 million passengers. In 2010 only 1.9 million passengers traveled by. Now estimated to be reduced, because Mandala Airlines no longer in operation. "Therefore, we provide international flights of Indonesia AirAsia to terminal 3, to be maximum," he said.

Next year, he explained, it is estimated there will be many more airlines are using the terminal 3 of Soekarno Hatta Airport, due to capacity will increase to 25 million passengers per year.

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APL Wins Nissan Motors Award

APL Logistics has received the Best Support and Coordination 2010 award from Nissan Motors in Thailand. This is the first time the Thailand unit of the global automotive manufacturer is handing out awards recognizing service excellence in its supply chain.

"We're pleased to be recognized by one of the largest global manufacturers in the automotive industry, one demanding nothing less than precision in its supply chain," said Dhanes Mekintharanggur, APL Logistics' director responsible for Thailand operations. "Our commitment to service quality, versatility and operational excellence is being recognized."

Since 2009, APL Logistics has been Nissan Motors' logistics partner in Thailand handling the supply of locally-produced automotive parts required by the car manufacturer's Samutprakarn plant.

APL Logistics manages 50 trucks making 80 trips in scheduled milk-runs, picking up components from multiple part supplier locations, before consolidating and delivering them just-in-time to the plant for the car assembly process.

source: logasiamag.com

AIRASIA Philippines Flying from Clark Air Base

AirAsia Philippines airline plans to first flight from legendary Clark Airport in October 2011, after the operating licenses issued by local authorities. On Monday, August 15, 2011, AirAsia Philippines has received the first Airbus A320 aircraft.

Clark Air Base is a United States Air Force base on Luzon Island, Philippines. Located 3 miles from the City of Angeles, and 40 miles northwest of Manila. Since 1991, this airport is used for a commercial flight, after being used by U.S. military forces from the years 1903-1991.

Hontiveros, AirAsia Philippines president and CEO, quoted from various online media the Philippines said, today is a proud moment for AirAsia Philippines, with the arrival of our new aircraft.

AirAsia Philippines expects to receive a second plane in the quarter-IV in 2011, while the other two Airbus A320 will arrive in 2012. Low-cost airline, has announced will also fly to regional destinations such as Singapore, Hong Kong and Macao.

From Clark Air Base which now well known as Diosdado Macapagal International Airport (DMIA), AirAsia Philippines will flies aggressively the cities with a maximum of four hours travel time.

Hontiveros also emphasized that the airline was trying to change the DMIA into the airport for international flights to Europe and America. AirAsia Philippines sister company, AirAsia X which is already flying to London and Paris.

Clark Air Base or Diosdado Macapagal International Airport (DMIA) has been operating 24 hours, with a target to the main gate of the Philippines in 10 years. Moreover, DMIA is one of the largest airports in Asia. There are two parallel runways with a length of 3.2 kilometers each of which will be extended to 4 kilometers to serve wide-bodied aircraft. The main runway (the primary runway 02R/20L) has a length of 3,200 meters and 60 meters wide. Equipped with all the navigation equipment and lighting. While the second runway, 3,200 meters in length with a width of 45 meters.

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QANTAS Airways Purchase 78 Units of Airbus 320neo

For the first time, Qantas Airways chose the Airbus A320 to launch a premium airline that will serve routes to and from Australia and Asia.

In addition, Jetstar, a subsidiary of Qantas, has selected the Airbus A320, to continue its growth in Australia and Asia. Commitment to order at least 106 aircraft A320 Family, including 78 jets A320neo, making the latest airline Qantas is to choose the best-selling single-aisle aircraft in the world.

The decision to choose Airbus for short to medium haul flights, confirmed that Qantas’ long-term strategy to build the fleet with the aircraft's most fuel efficient and reliable in the world.

"Qantas Airways is an airline pioneer and look far into the future. We are very pleased to be able to run a significant role in their company's future strategy," said John Leahy, Chief Operating Officer, Customers of Airbus.

In that release, Alan Joyce, CEO of Qantas, adding, "We are very pleased to be able to invest in a series of A320 Family aircraft are fuel efficient, including new A320neo aircraft as part of the transformation plan international expansion of Qantas and Jetstar in Asia."

Airbus A320neo is the choice of aircraft with new engines for the A320 Family series which will be operational in 2015. A320neo aircraft incorporates the latest generation of machines and devices Sharklet wingtips. This combination produces fuel savings and CO2 emissions by 15 percent.

Simultaneously, Qantas Airways has decided to adapt the delivery of six planes last of 20 A380 units into a new business plan. This will affect their shipments after 2013. Currently, Qantas has 10 Airbus A380s, making it the third largest A380 airline operator in the world.

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MOL launches ten 5,600-TEU ships to boost Asia-South America CSW service

JAPAN's Mitsui OSK Lines (MOL) has announced it will launch 10 new 5,600-TEU ships to replace existing vessels on the Asia-East Coast South America Service (CSW) with immediate effect to enlarge the loop fleet 13 units.

Along with the fleet expansion, MOL will begin chartering space to a consortium of NYK, "K" Line, Hyundai Merchant Marine and PIL, said the MOL statement.

The new vessels feature new wide-beam and shallow-draft design to enable high loading capacity and can meet the requirements of shallow ports as well as achieve better fuel efficiency.

The new MOL CSW service has a 91-day turnaround and calls at Xingang (Wed/Wed), Dalian (Thu/Fri), Qingdao (Sat/Sat), Busan (Mon/Mon), Shanghai (Fri/Sat), Hong Kong (Mon/Mon), Singapore (Fri/Sat), Santos (Sat/Sun), Buenos Aires (Tue/Wed), Montevideo (Thu/Thu), Paranagua (Sun/Sun), Sao Francisco Do Sul (Mon/Mon), Santos (Tue/Wed), Rio De Janeiro (Thu/Fri), Cape Town (Sat/Sun), Ngqura (Mon/Tue), Singapore (Thu/Fri), Hong Kong (Wed/Wed) and back to Xingang (Wed).

source: shippingazette.com

Merpati Airlines to open two new routes

PT Merpati Nusantara Airlines is now flying farther. The plan, the national airline will open two new routes on 24 August.

Two new routes to be opened is the route of Semarang - Surabaya and Surabaya - Banyuwangi. Commerce Director of PT Merpati Nusantara Airlines Tony Achmad Aulia said the two new routes will be flown once a day for seven days a week. "We will use the MA 60 aircraft each with a capacity of 56 seats," said Tony.

According to Tony, the opening of new routes before Eid ul-Fitr deliberately chose the time when many people travel back and forth. Besides that, the new route is aimed at helping the government break down the traffic jams during Eid ul-Fitr.

Onwards, the two new routes will be maintained despite the home coming Eid ul-Fitr season is over. According to Tony,  the second route potential to be developed to target the people who travel on business between cities in Indonesia.

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CATHAY PACIFIC profit FALLS 59pc to US$348.7 million, cites high fuel, uncertainty

HONG KONG's Cathay Pacific Airways posted a 59 per cent first-half plunge in net profit to HK$2.81 billion (US$348.7 million) year on year, attributing the decline to lower cargo demand, higher fuel costs and global economic uncertainty.

"After an exceptionally strong 2010, in which we made record profits, 2011 is proving to be more challenging," said Cathay chairman Christopher Pratt.

However disappointing the result, it still beat an average profit forecast of HK$1.5 billion from four analysts polled by Reuters.

Cargo business performed well at the start of the year, but slackened by the second quarter, while the passenger businesses of both Cathay Pacific and Dragonair did well throughout with a strong demand for premium travel, said a company statement.

Cathay reported that the delivery of its new Boeing 747-8F freighters has been delayed again. Now two deliveries are scheduled for September, with three more expected by the end of the year. But delivery dates are still subject to change.

The company also launched a cargo joint venture with Air China in May, in which it holds an equity and an economic interest. The joint venture operates from Shanghai under the Air China Cargo logo and will capture airfreight opportunities from the Yangtze River Delta region.

Fuel was the big cost, rising 49.5 per cent year on year, an increase of HK$6,461 million. Fuel hedging brought some relief, resulting in a realised profit of HK$962 million.

Cathay and Dragonair cargo started well, but demand from Hong Kong and the mainland weakened from April and first half revenue fell 7.7 per cent to HK$11.6 billion year on year. Yield was up by 7.1 per cent to HK$2.42 billion while capacity increased 14.6 per cent. The load factor fell by 9.6 percentage points to 68.4 per cent, said the company.

First half passenger revenue was HK$31.7 billion - an increase of 15.9 per cent year on year. Capacity increased 9.8 per cent and the two airlines carried a total of 13.2 million passengers, a rise of 1.7 per cent on 2010.

The group took delivery of six new aircraft in the first half with a further eight deliveries scheduled in the second half. In March, Cathay announced its intention to acquire another 27 new aircraft - two Airbus A350-900s, 15 Airbus A330-300s and 10 Boeing 777-300ERs. In August, Cathay Pacific announced a further acquisition of four Boeing 777-300ERs and eight Boeing 777-200F freighters.

Cathay Pacific started flying to Abu Dhabi in June and will start flying to Chicago in September, with frequencies increased to Milan, Paris, New York, Toronto and a number of southeast Asian routes. Dragonair increased frequencies to a number of cities on the mainland.

source: shippinggazette.com

LION AIR as the WORST airline in the On Time Performance

Lion Air was recorded as the worst airline in the timeliness - the on time performance (OTP) in Indonesia. Based on the results recap of the Ministry of Transportation during the I quarter of 2011, the Lion Air’s OTP average only reaches 66.45%.

According Ministry of Transportation, this is not the first time of the airline that owned by PT Lion Mentari Airlines has record a poor performance in the OTP. During January - April 2011, the Lion Air on time perfomance had reached a low of 54.30% in February. Whereas the highest achieved in April OTP at 77.30%.

Batavia Airlines OTP rate slightly better, reaching 68.83%. While the best OTP is still held by Garuda Indonesia 86.98%, while the OTP of Merpati Airlines 75.60%, Sriwijaya Air 74% and AirAsia 71.96%.

Director General of Civil Aviation, Herry Bakti, ask the airline who has punctuality rate into a bad category to improve its performance so that it can reach 80%. "They have to arrange the schedule according to ability," he said.

Herry said, airlines are often late is usually caused by high frequency of flights, but not matched with the fleet and adequate human resources. As for Lion Air, Ministry of Transportation has given sanction in the form of six-unit reduction in the frequency of plane flights.

Flight Observer, Ruth Hannah Simatupang, argues, to improve the on time performance, the airline should work with other airlines during a delay or cancellation. "So far, the only Garuda Indonesia has did it and it was for international routes," said Ruth..

Edward Sirait, General Director of Lion Air, pledging it will continue to improve the on time performance. Since reducing the frequency of flights, the OTP has increased. "Our last July OTP 76%," said Edward. In addition to reducing the frequency, Lion Air also increase the OTP by adding ground time from 35 minutes to 45 minutes.

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Big three JAPAN lines in the RED in first quarter

Japan's major shipping lines - MOL, NYK and "K'' Line - posted net losses in their fiscal year first quarter compared with net profits a year earlier, due to higher fuel cost, lower freight rates and yen appreciation.

"Freight market remained sluggish, and the yen appreciated. Because our income is based on the US dollar, yen appreciation means less revenue. Besides, fuel costs rose in the period," said an official at MOL, reported Platts Commodity News.

MOL said its bunker fuel costs for the period April-June period averaged at US$625/mt, up 31.9 percent from a year earlier. Yen averaged at 81.80 versus the US dollar, compared with 91.44 in the same period last year, said the company.

MOL reported a net loss of $103.72 million for April-June compared with a net profit of $263.85 million a year earlier. Its revenue was $4.42 billion in the period, down 12.1 percent year-on-year.

NYK Line reported a net loss of $90.62 million for April-June, compared with a net profit of $291.38 million in the previous year. NYK Line's revenue fell to $5.68 billion, down 11.3 percent year-on-year.

"K'' Line reported a net loss of $47.23 million over April-June, compared with a net profit of $200.25 million a year earlier. "K'' Line's revenue was $3.09 billion in the period, down 3.8 percent from a year earlier.

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