Teamwork is the key to success.

Resourceful brokers take on tough assignments

Brokers can earn money in good and bad economic times by being prepared, and qualified, to undertake difficult, complicated or downright dangerous assignments. In the first of a series Charter Broker looks at some of the more daunting tasks successfully undertaken recently. February's Charter Broker will highlight the skills of experienced operators and detail legal requirements.

Charter brokers in the frontline of transporting difficult and dangerous cargoes must be prepared to deal with eventualities ranging from armed soldiers to angry strikers. Bernd Niklas, md of Charter Service Niklas GmbH, says that, in certain parts of the world it pays to carry cash just in case airport 'royalties' are renegotiated at gunpoint. "One particular commission to organise the transport of outsize machinery was difficult in itself but there were added 'negotiations' as we tried to load the cargo," Niklas recalls. "I had arranged everything in advance with the airport including royalties and non-objection fees etc. Everything seemed to be agreed. But when I was supervising the loading my client and I were surrounded by armed soldiers and it took delicate negotiations, and a large amount of additional US dollars, before the airport chief enabled the re-clearance."

Difficult problems can surface in more dangerous and war torn parts of the world but even routine commissions on behalf of industries in Europe can put brokers in physical danger. "We have had situations where our driver has picked up items for delivery by truck to factories and then been attacked by workers on strike," Niklas says. "You have to be prepared to deal with almost anything ranging from aircraft being stoned by people wielding slingshots to having to organise contingencies when fuel proves to be unavailable at airports."

But Niklas says that, although charter brokers might have an important role to play, they are only a cog in the wheel. "We are not as important as the forwarding agents who nominate us to arrange a charter flight or the shipping company that requires assistance. However, often it is teamwork that makes the seemingly impossible, possible."

Charter Service Niklas was involved when Frankfurt-Hahn was the host airport for the transit of a generator for a gas power plant in Armenia, including loading frame, which weighed in at a record 189.98 tonnes and was put aboard an Antonov 225, the world's largest cargo aeroplane (Charter Broker, October 2009).

Niklas says that charter brokers never stop learning from daily challenges but the experience accumulated over the years benefits clients. "Flights of medical machinery and equipment around the world need the greatest care. Such cargoes are very delicate and, because of their fragility, must be handled like eggs."

Charter Service Niklas has learnt from arranging flights such as that of the brand new BMW Oracle racing yacht. "Only the AN 124 could carry it but even then placement was tight. Weight was not the problem: the length and the width of the yacht called for some special solutions. We have arranged flights where security was paramount such as the transport of euros to several places inside Europe. Every single pallet was moved under controlled conditions involving armed police and double checks on airport workers prior to loading. The heaviest euro shipment was approximately 100 tons of coins with AN 124 and thereafter the aircraft went down in size to several flights with Fokker F27, Falcon 20 and Learjet carrying high value notes."

Charter Service Niklas, he says was the first broker to work out how to load two CH53 helicopters and all their equipment into one Antonov 124. "It is now normal to do a double load," Niklas adds.

For air charter brokers in today's fast-paced world, arranging flights at short notice to anywhere in the world is routine. This might include emergencies involving professionals ranging from doctors to dog handlers or commissions ranging from TV and broadcasting trucks to European champions league games. One day it might be day-old chicks, another it could be the demands of Formula One racing cars and equipment, racing fuel itself or time-sensitive election material for an African country.

Air charter brokers have to team up with airline experts and freight forwarders to gather the knowledge, capabilities and skills in order to achieve the best and most cost-effective results in fulfilling their clients demands whenever it comes to difficult cargo.

Volker Dunkake, head of global sales and services at Lufthansa Cargo Charter, points out that a broker must have project management skills and the experience to bring about a bespoke solution. "It is not a question of simply getting the best price for flying a cargo from departure point to destination," he says. "Teaming up with the right partners and team expertise play an important role. The skills required are often multi-faceted as well as multi-modal."

Relief goods

As it is a part of the Lufthansa Cargo Group, the charter arm has direct access to a large group of experts in many places around the globe. "This of course makes a difference to others", Dunkake says. "Delivering 115 tons of relief goods to Rangoon with a full Jade Boeing 747-440ERF, without a main deck high loader available at the destination for example, would not have been possible without the expertise and creativity of our experienced loadmasters."

The Lufthansa charter arm will always charter the right aircraft needed for the job. But, all things being equal, it says it makes sense to utilize an aircraft from the fleet of its parent company whenever it can provide aircraft that is best for clients. The same criteria applies to Shenzen-based Jade in which Lufthansa has a 25 per cent stake and for Aerologic, the joint venture between DHL Deutsche Post and Lufthansa Cargo based in Leipzig. "Joining up all the group internal knowledge and other partners' capabilities enabled us to move a 46 ton piece on a B747-400ERF, where no one ever deemed it to be loadable. But, despite the 'group aircraft first' policy we do select third party aircraft for much of our business to fulfill customers needs." Dunkake adds.

Lufthansa Cargo Charter uses a range of aircraft from Cessna 172 through to the latest Airbuses available up to the super size Antonov 124 and 225. One difficult commission carried out with relative ease was the transport of heavy machinery on an Antonov 124 from Switzerland. "There were a number of problems involved but that's what we specialise in solving," says Dunkake.

Freight forwarders

Although the global recession has left its mark, Dunkake believes there are special business opportunities in airfreighting project cargo and event related equipment for concerts, works of art, exhibitions, or transporting racing cars for charter experts. "We do get the majority of our enquiries from freight forwarders who are almost invariably involved in the process. Especially for complex solutions quite a few of our enquiries come direct from clients who appreciate the air cargo expertise we have built up over the years. We know how to apply and develop bespoke solutions to really challenging tasks by using our unique access to the services and facilities of the group and those of our partners."

Dunkake believes that commercial cargo charter reached a peak in 2007 and that it will take time to recover, perhaps taking until late 2010 or 2011 to move back up to 2007 levels. "The very high levels were driven by trade from Asia with Europe and North America. China, India and Russia remain important."

The importance of Asia is demonstrated by the appointment of David Albaiceta as gm in the Asia Pacific Area for Lufthansa Cargo Charter, bringing in broad logistics working experience in Thailand and other Asian countries. Albaiceta, a Spanish national, who succeeds Eric Erbacher, also speaks fluent German, English and French.

In addition to these major trade lanes being very much driven by consumer habits there is demand for special solutions driven by investment into infrastructure, Dunkake points out. "In many instances, these projects happen to be carried out in areas where global trade has not as yet left too many footprints and transport infrastructure has not reached a mature state. This is what the experts at Lufthansa Cargo Charter deal with, very often being brought in only at the last minute."

Clients, he says, would benefit from involving the Lufthansa Cargo Charter team and their partners at an early stage, smoothing the preparation and advance sourcing of the aircraft and services needed.

Detailed early planning could also, he points out, save on cost. "This professional aspect of our industry's approach could be improved by improving dialogue with the engineering and construction companies and making the air cargo services more attractive for our customers," Dunkake says.

Cargolux is another company looking to develop business in Asia. It has launched Cargolux Italia, a fully certified Italian carrier operating a Boeing 747-400F. "Based in Milan, the airline will initially serve the Milan-Hong-Kong route, while eyeing further expansion in Asia once the Hong-Kong operation has reached its cruising speed. Cargolux Airlines International is acting as sole GSA for Cargolux Italia," says Robert van de Weg, svp sales and marketing.

Safety is paramount and, although time is always a scarce commodity, the drafting of loading proposals with the airlines or transport proposals for different aircraft types have to take place quickly. The demand is 24-7, 365 days a year, and brokers have to be ready at short notice to be on site to handle arranged flights or provide a door-to-door escort service.

Cargolux did 157 ad hoc charters in 2008 and would welcome more enquiries from air charter brokers. It numbers racing cars and fresh food among its strengths although Cargolux points out it seldom receives requests from brokers to move perishables.

Following the 2009 Le Mans 24-hour-race, Cargolux took responsibility for returning two Corvette C6R GT1s from Le Mans back to their workshop in New Hudson, Michigan. The shipment was trucked from Le Mans to London Heathrow, then delivered to Cargolux's London office and trucked to Luxembourg. From Cargolux's head office in Luxembourg, the two Corvettes were flown on board one of the company's B747-400 freighters to Chicago O'Hare and trucked from there to the P&M workshops at New Hudson.

Motor sport

The Corvette race car weighs about 1,200 kilos and has a horse power of 590, a length of 178.7 inches and a width of 78.7 inches. Cargolux worked with First Air of the UK, a specialist in arranging international freight forwarding and transport planning for motor sport and other specialized areas, and was undertaken for Pratt & Miller of the United States which is prominent in the automotive, commercial, military and aerospace industries.

Airlines as well as brokers need to be flexible. Cargolux switched to Mariscal international airport in the Ecuadorian capital of Quito after being based at Latacunga's Cotopaxi for almost eight years. The Government of Ecuador decided to revamp Latacunga to include a new passenger terminal, a new warehouse and refurbishment of the runway. Mariscal airport is situated inside the city, in the Andes of northern Ecuador and surrounded by high mountains. It was built more than 73 years ago, underwent major works in the 1970s, and is located on a plateau at the western side of the valley, 2,813 metres above sea level. "Its particular requirements means that Cargolux crews had to undergo special training on the company's 747-400 simulator."

The first flight into Quito saw flowers loaded and then a stopover at Bogota airport in Colombia, to collect yet more flowers destined for Luxembourg. Cargolux says the global economic downturn has seen a noticeable change in the volume of fresh produce being sent by air in general. "Obviously people are consuming less imported fruit and vegetables, especially the more expensive tropical fruits like mango and papaya. But, in general, perishables have declined less than general freight. In order to best accommodate perishable shipments, Cargolux invested in cooling capabilities, state-of-the-art aircraft and training and hiring the best people."

Brokers will also note that, as well as racing cars and perishables, Cargolux is also a member of the Animal Transportation Association and adheres to its principles for the humane transport of animals.

Three Bornean orang-utans boarded CV 7317 in Auckland, New Zealand, under the care of their attendants and the Cargolux Auckland staff, for their flight to a new home in the United States. First stop was Los Angeles where the orang-utans 'Indra', her daughter Intan and her father 'Horst', remained in quarantine for one month, before continuing their journey to their final destination Busch Gardens Zoo in Tampa, Florida, where they joined four other Bornean orang-utans in the zoo's captive breeding programme.

Other more usual commissions included involvement in the transport of two offsize pieces, heavy drilling equipment with spare parts on a Cargolux flight to Abu Dhabi and an EC145 helicopter made in Donauwoerth in Germany to Singapore.

Cargolux Airlines International SA, based in Luxembourg, bills itself as the largest all-cargo carrier in Europe. It currently operates 14 B747-400 freighters and is the launch customer of the B747-8F, with the first aircraft to join the fleet in the second half of 2010. "The company has 13 of this new generation aircraft on order, plus ten purchase rights and two options."

The business potential of transporting time-sensitive, difficult or dangerous good has been recognized by many charter companies.

Chapman Freeborn Aviation Services (CF) has completed the air transport of 30 portable housing units from Ras al-Khaimah, UAE, to Kabul, Afghanistan, in support of relief projects in the Yakatoot area, east of the capital.

CF's Dubai office coordinated five AN-124 charters on behalf of the US Embassy in Kabul, transporting six 40ft housing containers on each rotation. Each housing unit comes ready-constructed with bedrooms and basic amenities, and the new facilities will be put to use by the World Health Organisation and other specialised agencies of the United Nations.

Lloyd D'Souza, cargo charter specialist at CF's Dubai office, says: "This was a challenging project which required coordination between our Dubai office, our operations team and staff at Ras al-Khaimah airport to ensure the units were delivered in a timely fashion. But I am pleased that the assignment gave us the chance to demonstrate why we have built a strong reputation for excellent service."

Even in the most difficult of economic times there is money in arranging the transport of difficult or dangerous cargoes or arranging complex assignments, especially where notice is short.

A by-product of the economic downturn is that more charter brokers and charter operators are prepared to put in the spadework that will help ensure business options in the bad times as well as when demand for less-exacting assignments is plentiful.