DHL Express to significantly boost air cargo transport system to/from Japan

The Kawasaki East Post Office of Japan Post Co. has been completed and will kick off operation on May 4 this year. With this, Japan Post will switch to a system wherein the majority of the sorting operations for airmails arriving in Japan from overseas will be done at the new office. Sorting operations that used to be carried out at the Narita International Airport Post Office located at the Narita Airport Cargo Terminal will cease within fiscal 2013. The facilities at the said post office will be maintained while Japan Post is studying what to do with the office in the future...

The bill related to the operation of government-controlled airports by private entities (Private Operation Airport Bill) has received approval from the Cabinet on April 5 and has since then been submitted to the Diet. The bill provides the measure that is necessary in case a private entity will carry out the special operation (accept landing fees and other charges and operate an airport) under the system of operating public institutions as stipulated in the Private Fund Initiative (PFI) Law. Formulated for the purpose of unifying the operations of airports and airport-related companies, this bill will enable private companies to secure operation rights on such facilities...

Five major forwarders registered a 23.5% year-on-year decline in their total consolidated airport export cargoes in March this year to 40,094 tons. The volume in March is more than 10,000 tons smaller than the volume recorded in the same month last year. March is usually the month when cargo traffic picks up thanks to the last-minted demand at the end of the fiscal year, but there was no emergency shipment demand this year. While the handlings in March manifested an improvement compared to February this year (when the volume slipped 26.9% from the previous year to 34,346 tons), the downward trend still prevailed...

The combined volume of containerized cargoes that were handled by the major operators in the Japan-Asia trade route in February this year slipped 4.9% from the same period last year to 313,000 TEUs. Broken down, the cargoes were comprised of exports totaling 155,000 TEUs, down 1.5%, and imports at 158,000 TEUs, down 8.1%. Exports to South Korea, Vietnam and Cambodia enjoyed wide-margin jumps, but those to China and the Straits fared poorly, so the entire volume of exports from the country still suffered from a slight decline. As for imports, shipments from North/East China, Taiwan, Vietnam, Singapore, Malaysia and Myanmar evolved on a weak tone, registering double-digit drops across the board...

SG Holdings will formulate clear overseas business strategies toward the proactive expansion of its business interests abroad. The Singapore-based SG Holdings Global (SGHG), the company that has control over the Group's overseas businesses and is tasked with the formulation of the Group's overseas business strategies, intends to aggressively invest in crucial strategic regions, including the emerging markets. The domestic controlling company of SGHG in Japan, which is under the wing of the SG Holdings Group and undertakes the business of international cargoes, will launch dedicated units for express services, as well as utilize the marketing prowess of Sagawa Express and reinforce the collection and delivery of cargoes in U.S., Europe and other areas...

Nippon Express Co. (Nittsu) will acquire Panasonic Logistics (headquartered in Settsu, Osaka with its president, Kouei Fujii), the logistics subsidiary of Panasonic Corp. The two firms entered into a basic agreement on March 28 stipulating Nittsu's purchase of 66.6% of the shares in Panasonic Logistics, which is wholly owned by Panasonic Corp. The final share transfer contract is slated to be concluded by the end of May, with the actual acquisition of the shares to take place in July. Nittsu has just announced the conversion of NEC's logistics subsidiary NEC Logistics into its own subsidiary on March 27...

Kintetsu World Express (KWE) announced on March 29 that it would open the doors of KWE do Brasil Servicos Logisticos, its local Brazilian subsidiary that is located in Sao Paulo, on April 1. The company used to have a representative office in Sao Paulo, but still established a local subsidiary in the country last August in anticipation of the growth in international transport demand brought about by the accelerated advent of U.S./Japanese-affiliated manufacturers into the country. The new subsidiary will engage in the business of representation of transport companies and cargo transport, among other businesses. The company will have a capital of 2 million reais (approximately Y93 million) and three employees...

Hankyu Hanshin Express will move up to become a core subsidiary under the direct control of Hankyu Hanshin Holdings (HD) starting fiscal 2013 (ending March 2014). With the dissolution of the intermediary holding company that used to control the Group's travel and international transport businesses, Hankyu Hanshin Express will become an independent firm that will serve as the "international transport" division of the Group. It will continue to step up the launch of bases at the growing economies worldwide, centering on Asia, toward the expansion of the Group's business scale. With regard to overseas expansion, the company plans to open a local subsidiary in Myanmar in summer this year, among other things. Further, it has opened the doors of its subsidiary in Mexico effective today. The company is also establishing a foothold toward...

(By Masamichi Iwahashi, reporting from Doha, Qatar)

The 7th World Cargo Symposium (WCS) hosted by the International Air Transport Association (IATA) that was held in Doha, Qatar has ended on March 14, with about 1,000 participants gracing the event in its three-day run. One of the major milestones reached at the symposium was the approval of the multilateral electronic Air Waybill (e-AWB) by the Cargo Services Conference (CSC). The IATA assessed that the multilateral e-AWB will now make it easier for airlines and freight forwarders to enter into individual bilateral e-AWB agreements and will provide a major driving force toward the explosive penetration of the e-AWB itself...

Studies are now underway concerning the lifting of the ban in the import of fresh chicken meat from Thailand, which has ceased since 2004 owing to the outbreak of bird flu in the Asian region. Europe has already decided in July last year to lift the import ban on Thai chicken and industry sources claim that Japan's Ministry of Agriculture, Forestry and Fisheries (MAFF) is scheduled to conduct onsite inspections in Thailand toward the same end. At present, more than 90% of the total imported fresh and frozen chicken imported by Japan comes from Brazil, with the chicken shipped from Thailand and China, where there was a bird flu outbreak...

(By Masamichi Iwahashi, reporting from Doha, Qatar)
Emirates SkyCargo and Qantas Freight held a press briefing in Doha, Qatar on March 12, where they announced that on March 31 they have started providing their customers with seamless transport services through the interconnection of their respective passenger routes that cover the world. With this, customers are now able to book cargo transport services that these two carriers operate in Australia, Asia, Europe, the Middle East and North America. The partners claim that they now have a total of 233 bases and destinations across six continents. Their agreements serve as the premise of the partnership...

Japan's Ministry of Land, Infrastructure, Transport and Tourism (MLIT) intends to abolish the prerequisite of "targeting response to major emergency situations and sudden transport demands of shippers, such as the temporary/concentrated increase in air cargoes" that has been set in relation to the execution of airline charters. With regard to the airline charter that its enforced with countries/regions that have yet to adopt aviation deregulation, the MLIT plans to continue to adhere to the condition of "responding to emergency situations and temporary/concentrated increase in air cargoes," but intends to ease the requirements in case aviation deregulation has been introduced. The ministry is currently studying the amendment of the corresponding circular notice toward the targeted enforcement of mid-April...

Itochu Logistics Corp. (led by its president Kazuhide Sasa) is stepping up its efforts to reinforce its overseas network. In line with this, it has recently completed the registration of an independent warehouse company in Indonesia, where it already has a forwarding business. Itochu Logistics will launch warehousing and logistics businesses in the country, with automotive part manufacturer as the main targets. Having already laid out a system that can consistently provide international/domestics logistics services to customers, the company is also targeting the realization of synergy with its forwarding company over there. Further, it has firmed up its intention to put up a local subsidiary in Mexico by summer this year...

All Nippon Airways (ANA) on February 28 announced the scheduled changes in its management following its transformation into a holding company. Shinichiro Ito (photo left hand), current president of ANA, has been appointed to serve as the president and CEO of ANA Holdings Inc. (ANAHD), which will become a holding company, and chairman of All Nippon Airways Co. (ANA), which will become the airline business company. Osamu Shinobe (photo right hand), current senior vice president of ANA, will assume the role of president and CEO of the business company ANA. Meanwhile ANA's current chairman, Yoji Ohashi, will take over the role of chairman at ANAHD...

Keiichi Ando (photo), president of the New Kansai International Airport Co. (NKIAC), held a press briefing on February 28, where he announced the strategic charges at the airport starting fiscal 2013. In addition to the 5% across-the-board reduction in landing fees on international routes, NKIAC will also implement various other measures on international and domestic flights, including (1) additional tonnage discounts on landing fees, (2) 50% discount on the landing fees for midnight to early morning flights (1:00AM to 5:59AM) and (3) cuts in the baggage handling system (BHS) charges (about 20%)...

Korean Air Lines Co. (KAL) will significantly boost the number of its cargo flights between Narita and Incheon to seven times per week, from the current four flights weekly, starting with its summer schedule. Flights in the Kansai-Incheon route will be kept at the current thrice-weekly schedule, while services in the Japan route will run at the rate of 10 flights per week. All of KAL's flights are served by Boeing 747 aircrafts in a bid to accommodate freighter-sized large items, hazardous substances and other specialized cargoes. The company aims to capture more cargoes by capitalizing on its hub functions in Incheon and making use of the same-day connection network...

Japan's Ministry of Land, Infrastructure, Transport and Tourism (MLIT) is studying the application of restrictions on foreign investments pursuant to the Civil Aeronautics Act on companies that essentially control the management of Japanese air carriers that are their subsidiaries through the distribution of aircrafts and other assets. The restrictions are targeted for enforcement on April 1 this year...

Japan's Ministry of Land, Infrastructure, Transport & Tourism (MLIT) announced on February 26 that it will implement several measures in support of the cessation of operation of Boeing 787 aircrafts, including: (1) exemption from the payment of parking fees, (2) exemption from the U/L (Use it or Lose it) rule that applies to regular international and domestic flights at Haneda and Narita Airports, and (3) more flexible handling of the pilot approval system. The exemption from the U/L rule will be applied to the routes where 787s operate, as well as to the other routes that are affected by the deployment of replacement planes to the said routes where the B787s used to fly...

Mitsubishi Logistics Corp. announced on February 25 that it will establish the local subsidiary Jupiter MLC Logistics (Myanmar) Limited in Yangon, Myanmar jointly with its affiliate, the Hong Kong-based freight forwarder Jupiter Global Limited (JPT, Japan Airlines holding a 51% stake in the company and Mitsubishi Logistics 49%). The company, which will be equally owned by the two partners, is scheduled to kick off operations on April 1 this year. It plans to initially advance market research targeting infrastructure-related cargoes bound for Myanmar and then expand its business lineup...

The volume of air cargoes hauled worldwide for Canon Inc. in the entirety of 2012 was virtually reduced in half in comparison to the volume recorded in 2011. The significant contraction in airborne cargoes was mainly attributable to the company's major shift to marine transport from air transport in an effort to enhance logistics through such means as establishing the optimum transport system, and to help preserve the environment by reducing carbon dioxide (CO2) emissions. Meanwhile, the company projects that its marine cargo volume for 2013 will exceed the ratio of increased revenues (expected to climb 9.5% higher than 2012) in the consolidated sales forecast at more than 120,000 FEUs...

Hokkaido Airport Terminal Co., which operates the terminal buildings at the New Chitose Airport, will build an international logistics/processing base (inland depot) at its company-owned site near the airport by the end of fiscal 2014. It aims to lure in logistics companies and warehouse businesses into the site toward the increase in cargo handlings, promotion of the region and invigoration of the airport. The development site will be about 3km away from the New Chitose Airport, adjacent to the Hokkaido Expressway-New Chitose Airport Interchange (IC) that is slated to open in fiscal 2013...

Nippon Yusen Kaisha (NYK) announced on Feb. 22 that it will make a large-scale reshuffling of its Japan-Asia and other intra-Asia services from late March to early April. Massive realignment plans include expanding into two loops of its current Japan-Indonesia service jointly offered with fellow Kawasaki Kisen Kaisha (K Line). This will realize the industry's fastest transit time for its Kanto-Indonesia service while retaining the current fast transit times from Kansai to Indonesia. With these measures, NYK will further stabilize its schedule adherence. In addition, NYK will divide its Japan-Thailand/India HLS service, the industry's sole direct service on the specific route, into two services, one on the Japan-Vietnam/Thailand route and the other on the Thailand-India/Pakistan route. This will better enable NYK to meet transport demands between Thailand and Indonesia, and further stabilize service schedule between Japan and Pakistan. HLS was originally launched by the former Tokyo Senpaku Kaisha in 2006, but...