Atlantic Canada Air Cargo - CCFI
Atlantic Canada Air Cargo - CCFI
Atlantic Canada Air Cargo - CCFI
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<strong>Atlantic</strong> <strong>Canada</strong><br />
<strong>Air</strong> <strong>Cargo</strong><br />
NS Haddock Symposium<br />
Presented by<br />
Fly Fresh Freight
Fly Fresh Freight<br />
Introduction<br />
FLY FRESH FREIGHT is a joint venture of PF Collins and Atlantis Aviation.<br />
FLY FRESH FREIGHT is an organization focused on the development d<br />
of a<br />
COOL SUPPLY CHAIN for perishables from <strong>Atlantic</strong> <strong>Canada</strong> to Europe and<br />
the world, all products, seasons and locations.<br />
FLY FRESH FREIGHT activities include:<br />
International market development for industry producers<br />
Maximization of an extensive network within the air cargo industry<br />
Delivering the PF Collins Freight Forwarding Logistics Excellence to the<br />
seafood industry of <strong>Atlantic</strong> <strong>Canada</strong>.<br />
FLY FRESH FREIGHT aims to ensure all committed stakeholders s obtain a<br />
fair Return On Investment.
Market Research Results<br />
<strong>Air</strong> carriers are re-structuring to capture<br />
profitable market-share in this growth sector.<br />
Large scale aircraft and infrastructure<br />
expenditures are realities.<br />
Icelandair<br />
‣ continues to expand as an industry leader in the fresh<br />
freight market.<br />
‣ provides 40 ton freighter service five days per/week<br />
to EU.
Perishable <strong>Air</strong> <strong>Cargo</strong><br />
Perishables make up 14% of total air cargo<br />
world-wide.<br />
wide.<br />
<strong>Air</strong> cargo is predicted to grow by 6.2% a year till<br />
2023<br />
Perishable cargo will grow by 9.4% a year/2023<br />
Need for market to market direct service<br />
The Cool chain component is most important<br />
‣ Quality<br />
‣ Costs<br />
‣ Time
<strong>Air</strong> <strong>Cargo</strong> Options<br />
Existing Passenger Carriers<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<strong>Air</strong> <strong>Canada</strong><br />
<strong>Air</strong> <strong>Canada</strong> Jazz<br />
<strong>Air</strong> Georgian<br />
<strong>Air</strong> St. Pierre<br />
<strong>Air</strong> Labrador<br />
American Eagle<br />
CanJet<br />
Continental <strong>Air</strong>lines<br />
Delta Connection<br />
PE<strong>Air</strong><br />
Provincial <strong>Air</strong>lines<br />
Skylink<br />
WestJet<br />
‣ International capabilities<br />
‣ Domestic & US<br />
‣ Domestic & US<br />
‣ Domestic & Intl’l<br />
‣ Domestic<br />
‣ International capabilities<br />
‣ Domestic & Int’l<br />
‣ International capabilities<br />
‣ International capabilities<br />
‣ Domestic<br />
‣ Domestic<br />
‣ Domestic<br />
‣ Domestic & Int’l
<strong>Air</strong> <strong>Cargo</strong> Options<br />
Existing <strong>Cargo</strong> Carriers<br />
<strong>Air</strong> <strong>Canada</strong><br />
<strong>Cargo</strong>Jet<br />
Fed Ex (global)<br />
Purolator (domestic &<br />
US)<br />
‣ 1 weekly freighter to<br />
Frankfurt, via Spain<br />
‣ Daily domestic<br />
freighters connecting<br />
internationally<br />
‣ Daily freighters global<br />
network<br />
‣ Daily freighters<br />
domestic and U.S.
<strong>Air</strong> <strong>Cargo</strong> Options<br />
<strong>Air</strong> <strong>Cargo</strong> Charter Carriers<br />
<strong>Air</strong> <strong>Cargo</strong> Charter <strong>Air</strong>lines are based on both<br />
sides of the <strong>Atlantic</strong>. They target the shipment<br />
of time sensitive products.<br />
‣ Seasonal or year round availability<br />
‣ Variety of aircraft (size, volume, frequency)<br />
‣ Require financial & volume commitments<br />
Sample carriers:<br />
‣ <strong>Air</strong> <strong>Canada</strong> <strong>Cargo</strong><br />
‣ <strong>Cargo</strong>Lux<br />
‣ FedEx<br />
‣ UPS
<strong>Air</strong> <strong>Cargo</strong> Costs<br />
<br />
Reflection of:<br />
‣ Frequencies<br />
‣ <strong>Air</strong> Industry Sector (schedule vs. charter)<br />
‣ Trucking Sector (full load vs. less than load)<br />
‣ Market Destination<br />
‣ Species type<br />
‣ Product handling sensitivity (perishables)<br />
‣ Freight Forwarder Pricing<br />
‣ Customs<br />
‣ Volumes<br />
‣ Inter-modal<br />
‣ Fuel surcharges<br />
‣ NAV <strong>Canada</strong> & Security Charges
<strong>Air</strong> <strong>Cargo</strong> Costs<br />
Beyond the rate:<br />
‣ NAV <strong>Canada</strong> = .7/kilo<br />
‣ Security = .15/kilo<br />
‣ Fuel Surcharges fluctuate presently at:<br />
• Domestic<br />
• Transborder<br />
$0.45 / kg CAD<br />
$0.56 / kg CAD<br />
$0.56 / kg CAD<br />
• International $0.56 / kg<br />
Customs/Inspection charges vary with the<br />
country of destination and are negotiated<br />
separately in each case
Packaging & Shipping<br />
Requirements<br />
Packaging is a function of shipping time, usually<br />
designated by buyer<br />
Health inspections usually required – percentage<br />
inspected varies<br />
Requires industry standards<br />
‣ Modified Atmospheric Packaging<br />
‣ Opportunity for <strong>Atlantic</strong> <strong>Canada</strong> branding<br />
‣ <strong>Air</strong> cargo carrier requirements<br />
‣ Sturdy - Leak proof – sealable – gel packs<br />
‣ Palletized and containerized
Historic Challenges & Obstacles<br />
Carriers do not see routine regular<br />
shipments<br />
Producers do not perceive reliable supply<br />
chain<br />
No industry wide strategy on fresh to<br />
increase volumes and market penetration<br />
Trust between carriers & producers is<br />
fragile
Industry Opportunities<br />
The industry must rally together, not permit<br />
itself to be fractioned in its approach to market.<br />
Opportunity exists in regional branding<br />
‣ <strong>Atlantic</strong> <strong>Canada</strong> Salmon Farming Sustainability report<br />
Working together:<br />
‣ Maximizes volumes<br />
‣ Minimizes risk for producers and air cargo carriers<br />
‣ Establishes industry credibility<br />
‣ Ensures trustworthy business relationships amongst<br />
stakeholders, (producers, air carriers, logistics<br />
providers)
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