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Cargo
Matters
Magazine for Customers & Partners
July 2018 – Jubilee edition
Lead Story Utopia/Distopia Contest
15 years of “Cargo Will air cargo leaders Win an overnight stay
Matters” learn to disrupt their at the Savoy Hotel in
industry? Zurich
2
Content
3 Editorial 26 Verticals – Precious,
By Ashwin Bhat Luxury & Banking
14 Verticals – Success Story
Pharma & Healthcare The art of shipping
Success Story artworks
When time matters 30 Network –
19 Digitalisation Station Portrait
Lead Story Introducing the eDGD – Welcome to Hong Kong
4
15 years of “Cargo Matters” Electronic Dangerous 33 Three question about ...
By Heiner Siegmund and Goods Declaration eBooking
Will Waters
20 Utopia/Distopia 34 Facts & Figures
Let air cargo leaders Everything you wanted
learn to disrupt their to know about...
industry Zurich Hub
22 Experts’ Views 37 Editor‘s Pick
eCommerce: what Best of Social Media
do you expect from
your “middle mile 39 Timetable News
provider”? 41 Industry Events
24 B2C Solutions Save the date
10
Verticals –
Pharma & Healthcare Export Office Zurich 41 Contest
CEIV certification special 5-star transportation Win an overnight stay at
solutions the Savoy Hotel in Zurich
Imprint
Cargo Matters – Edition 1/2018 – July 2018
Publisher Ashwin Bhat, Head of Cargo – Swiss International Air Lines; Editor in Chief Alexandra Dahl, Head of Marketing & Communications;
Managing Editor Silvia Cappelli, Content Marketing & Digital Media; Distribution Manager Maria Campanella, Brand Management; Editor
Herbert Aichinger (MARESCH GmbH); Adaptations Steve Elliott; Guest writers for this edition Joachim Ehrenthal (JOE.Systems), Fabian
Mettler (Swiss WorldCargo), Heiner Siegmund (Cargo Forwarder Global), Will Waters (CAAS); Special thanks to AAA (Enrico De Maria),
Cargologic (Michel Bonsera), DHL (David Bang), Fondation Beyeler (Matthias Fellmann), Loomis Artcare (Barbara Schlagbauer), PHSE
(Alessandro Colasi), Savoy Baur En Ville Hotel (Luis Avin, Eva-Marie Knaak), Swiss WorldCargo (Silvia Chacon, Ivy Chan, Milo Gerisch,
Shankar Iyer, Jochen Leibfritz, Dominic Peter, Fulvio Stolpe, Susanne Wellauer, Dorottya Zaban)
Production & Advertising: Cora von Planta, Céline Högger, MARESCH GmbH, hello@maresch.ch; Design Concept/Layouting Peter Hoffmann,
MARESCH GmbH, peter.hoffmann@maresch.ch; Printing Schätzl Druck & Medien GmbH & Co. KG, info@schaetzl.com
If you wish to subscribe or unsubscribe to “Cargo Matters”, please send an e-mail to:
cargo.communications@swiss.com
Legal disclaimer the views expressed in this magazine are not necessarily those of Swiss WorldCargo;
Circulation 18‘000; Annual subscription: £20.00/$40.00
3
Editorial
Dear Cargo Matters
Reader,
“The times they are a-changin’”, Bob Dylan
proclaimed in one of his most famous songs in
1964 – and today they are changing more rap-
idly than ever before. This, of course, also ap-
plies to the logistics and air cargo industries.
And with the current issue of Cargo Matters, we
would like to invite you, dear reader, to join us in
celebrating 15 years of Swiss WorldCargo and
Cargo Matters!
We care about people
In early 2002, Swissair was in dire straits – not Fostering the cultural DNA of
least due to the global economic upheaval fol- Swiss WorldCargo
lowing 9/11. After the formation of Swiss In- Offering the best possible services and solu-
ternational Air Lines (SWISS) in 2002 and the tions for complex logistics tasks, maintaining
merger with Lufthansa in 2005, the subsidi- ing fast and easy communication across inter- close relationships with clients and partners
ary Swiss WorldCargo has risen like a phoenix national borders as well as the implementation alike and utilizing state-of-the-art technologies
from the ashes and become one of the most re- of more efficient and effective cross-industrial to create the optimal customer experience –
spected air logistics providers in the world. This business processes. However, while the com- these are the ingredients of Swiss WorldCargo’s
development has mainly been enabled by Swiss munication channels may have improved and DNA which is being passed down through our
WorldCargo’s self-understanding of a “peo- become more diversified – one aspect of our staff and has helped to develop Swiss World-
ple’s business”. Thus, Swiss WorldCargo’s sus- work still has not changed over all these years: Cargo into a strong, globally well-established
tainable success is not only the result of always For Swiss WorldCargo, air logistics still remains and valued brand.
remaining one step ahead of market develop- a people’s business!
ments. We have also consistently set great val- We promise you, dear valued customers, that
ue upon the commitment of our employees, Challenging tasks – sophisticated we will never cease in our efforts to perfectly
partners, and subsidiaries to Swiss WorldCar- solutions meet your demands and we thank you for your
go’s “customer first” business approach. Right from its beginnings, Swiss WorldCargo longstanding trust and support.
has always excelled with its extensive range of
Digitalisation has brought us closer smart solutions regarding pharma, valuable, We care for your cargo.
together and other care intensive commodities as well as
Personally, I joined the air logistics industry in express and postal services. And yet, we have Ashwin Bhat
1992, and from a technical point of view, the never stopped further developing our offers in Head of Cargo
way we do business has evolved from using order to perfectly meet our clients’ changing Swiss International Air Lines Ltd.
dot matrix printers and sending telex messag- requirements and needs. For instance, in this
es to sophisticated and customer-friendly dig- issue of Cargo Matters you will find more infor-
ital solutions. Meanwhile, thanks to the emer- mation on how we have established efficient,
gence of web technologies and digitalisation, safe and transparent standards and process-
the world has become a global village, facilitat- es for the shipment of sensitive goods, so that
we are now able to provide our customers with
CEIV-certified services worldwide.
5
Lead Story
The future of air cargo:
Please fasten your seat belts
Currently, air cargo is cruising in seventh heaven. The good
times show no sign of ending, as the trend since the begin-
ning of this year suggests. Does this mean that everything is
coming up roses? Not really, because the industry is going to
face innovation boosts which will bring about fundamental
changes in business processes.
Text by Heiner Siegmund
Both gentlemen were full of optimism, bristling
with ideas and presented fantastic plans for
the future. Their names: Heinz Kupferschmid
and Bernd Maresch. The former had just been
appointed manager of the newly established
Swiss WorldCargo division, the latter had tak-
en up the position of manager of marketing and
communication. The third person taking part
in this meeting in Zurich was the author of this
article, who conducted the first interview with
both managers since the establishment of the
air cargo service provider. Heiner Siegmund (left today, right 15 years ago)
Publisher CargoForwarder Global
That was 15 years ago. A memorable encoun-
ter, because Swiss Air Lines had just risen like
a phoenix from the ashes of Swissair, following
its demise. One positive thing which came out Benchmark status
of this shock event: the company had learned Since those times, SWISS, which already had
from its mistakes and most Swissair employees a new home under the wing of Lufthansa, has
kept their jobs, particularly those working in the been able to gain the respect of clients world-
air cargo division. Therefore, it was not neces- wide. This also applies to the air freight division
sary for the newcomer to re-invent the cargo Swiss WorldCargo which has, after some to-ing
business. Most notably, all the people involved and fro-ing, finally focused on selling the un-
were incredibly euphoric. derfloor capacity of its passenger fleet. It has
been proving the success of its approach year
by year, documented by black figures, crea-
tive concepts, extreme flexibility, product offer-
ings tailored to customer groups, and a clear-
ly structured intercontinental network that
has been carefully expanded over the last few
6
Lead Story
brought beads of sweat to the brows of Ash-
win Bhat and his colleagues, because the sales
people had to sell about 20% more transport
capacity.
Security comes first The global aviation security plan that has been
An entirely different topic in the 15 years of in operation since 9/11 has also influenced air
Swiss WorldCargo’s history has always been cargo jargon. Word created such as “regulat-
the subject of security. Shortly before the ed agent”, “known shipper” or the abbrevia-
SWISS carrier took to the skies, the unimagina- tion “REST”, which stands for “Remote Explo-
ble happened: the terrorist attacks in the USA sive Scent Tracing,” with the help of specially
years. Hats off! Today, Swiss WorldCargo is es- on 11th September 2001. This tragedy and the trained dogs, were completely unheard of be-
tablished as the industry’s benchmark. It has subsequent fight against terrorism fundamen- fore. Since then, they have been on everybody’s
become THE quality carrier for belly freight. tally changed the security landscape. “Security lips at airlines, handling agents, forwarders and
comes first” has always been crucial in the air shippers.
Viewed retrospectively, Heinz Kupferschmid cargo business. However, since 9/11 the princi-
and Bernd Maresch’s hopes for the future have ple has been applied at a level of intensity and Speed beats slowness
become reality, not least thanks to brilliant control that was previously hardly imaginable, Being forward-looking is a distinguishing mark
managers such as Oliver Evans or Ashwin Bhat, in order to completely rule out any risks on the of a time characterised by the significant
as well as Jack Lampinski in America. These vi- way from the manufacturing site to the cus- acceleration of product cyclicality, as exem-
sionaries and motivators are largely responsible tomers’ premises. plified by the development of smart phones.
for the successful symbiosis of continuity and There were already predecessors over 20 years
change at Swiss WorldCargo. They have helped The result so far: Thanks to a significantly ago, but the breakthrough of smart devices did
to inspire superb team efforts. This was crucial effective global control system, the close coor- not occur until the presentation of the iPhone
for the Swiss airline to navigate through rather dination of all the stakeholders along the supply in 2007. Smart phones visibly influence our
difficult times relatively safely. And it awakens chain, as well as target-oriented tip-offs from economic and cultural life: The ready availabil-
memories of the financial crisis in 2008 which undercover investigators, the security plan has ity of information has become the most impor-
started in the USA and also caused SWISS trou- been successful, e.g. when a bomb from Yem- tant differentiating feature. This means that it
ble for a short while. en was due to be sent to the USA on board a is no longer the powerful that beat the weaker,
freighter belonging to the fleet of a U.S. inte- as it used to be ever since the Stone Age. To-
Ashwin‘s beads of sweat grator. day, faster companies beat slower ones.
Another challenge for the cargo business,
among many others, was the shift from Airbus For air cargo in general, not just for Swiss
A340 to Boeing 777 aircraft in the long-haul WorldCargo, this implies that many processes
fleet, which started in 2016. This move really can be automated thanks to data exchange at
the speed of light. Service quality along the sup-
ply chain can be further optimised; clouds and
June Swiss WorldCargo starts
publishing data measured by IATA’s
quality management system
Cargo 2000
2005
2002
2006
March Swiss WorldCargo and
March SWISS International Lufthansa Cargo conclude a
Air Lines is founded marketing and sales collaboration
agreement
April SWISS creates its
Swiss WorldCargo airfreight division December All Swiss WorldCargo
stations certified to standards of
December Oliver Evans is appointed
Cargo 2000 – Phase 1 implementation
Head of Swiss WorldCargo
programme
7
Fresh thinking required
The question is whether they will be able to take
up the challenge, financially, technically, and –
primarily – according to their way of thinking.
Because there is hardly any pressure to align
data packets linked up by means of block chain as long as business is flourishing as is currently
technologies help to create close and precise- being seen in the air cargo landscape. Howev-
ly clocked customer-supplier relationships. er, the next crisis will incite fresh thinking. But
The digital revolution is progressing ever more it might already be too late by then. An anti-
quickly, both technically and culturally. cyclical strategy would be a clever move in the
air cargo industry: reform processes during
Where does the air cargo industry stand today and algorithms provide the customer with pric- successful phases and consolidate in tougher
in this respect? It is striving to keep pace with ing transparency, let them choose between times.
developments. The transition in data transfer several transport service providers and open up
between the participants in the supply chain technical options to individually tailor their ser-
from printed documentation to electronic vice packages to their requirements.
channels (e-Air Waybill) can be improved fur-
ther, to say the least. For many carriers within Learning to disrupt
the industry, the share of e-AWB shipments still Therefore, “more of the same“ is old-school, One question remains: What has become of
does not exceed 50%. (March 2018). Not very because the supply chain industry is current- the gentlemen Kupferschmid and Maresch
mentioned above?
impressive. ly facing an extremely dynamic paradigm shift.
New technologies, analytical methods, 3D Heinz Kupferschmid left Swiss WorldCargo
shortly after it was founded. Bernd Maresch
The glass should be half-full instead printing, robotics, machine learning and the worked at the company as Manager of Marketing
of half-empty increasing use of drones on the first and last and Communication until 2011. He subsequently
Disruptive technologies, such as cloud com- mile will incite significant processes of change. set up “MARESCH”, his own PR agency, which
is located near Zurich.
puting or robotics, which are rapidly enter- This does not only apply to smaller agents and
ing the market, are another topic the air car- mid-tiers, but also to the current major play-
go industry has to tackle fairly quickly. They are ers in the logistics industry. Companies that do
transforming processes faster and faster and not adopt the new trends in time and see them
demand newly defined and aligned business rather as risks instead of chances will miss the
models to enable firms to maintain their estab- boat sooner or later. This is one of the results of
lished relationships within the cargo and logis- the current Accenture study on disruptive tech-
tics world. Platforms based on Big Data, clouds nologies and their effect on logistics chains.
Accenture’s conclusion: “Digital Disruption in
the logistics industry threatens traditional play-
ers with irrelevance – unless they too learn to
disrupt.”
September IATA selects Swiss February SWISS takes delivery
WorldCargo to pioneer the introduc- of the first of nine Boeing
tion of “e-freight” in Switzerland 777-300ER aircraft
March Swiss WorldCargo launches July Bombardier C Series enters
its SWISS °Celsius Passive solution service at SWISS
for temperature sensitive shipments
2009 2016 2017
2013 2015 2018
March Quality alliance with
Cargologic and SATS March Swiss WorldCargo launches
new website to put user experience
October Ashwin Bhat takes and its customers at the centre
over from Oliver Evans as
Head of Cargo June Swiss WorldCargo receives
CEIV Pharma Certification
8
Lead Story
The wings of globalisation
Will Waters highlights some of the key events
that have helped shape the development of air
freight over the past 15 years
Text by Will Waters
I began writing about air freight in late 2001 – a
dramatic period in aviation and air freight his-
tory – although since then, the sector has con-
tinued to experience its fair share of ups and
downs.
Will Waters (left today, right 15 years ago)
Highlights – and lowlights − including the air- Editor of Cargo Airports & Airline Services magazine and Editor of the freight and
logistics news service Lloyd’s Loading List
line recession and heightened security environ-
ment triggered in the early 2000s, the econom-
ic collapse and subsequent volatility since the
2008 global financial crisis, competition from chain which was already unable to match the
increasingly efficient ocean freight and road connectedness offered by integrators. In addi-
freight transportation, and the supply chain di- tion, progress via Cargo 2000, the quality initia-
versification which followed the US west coast tive supposed to help connect the fragmented
port strikes and the 2010 Eyjafjallajökull Icelan- chain, seemed rather slow.
dic volcano eruption. Legacy carriers’ struggle their pre-2001 levels. Following the aftermath
against low-cost airlines and new competition of the 9/11 terrorist attacks and their use of Air cargo alliances such as Wow and SkyTeam
from Middle Eastern and Asian carriers is well aviation as a weapon, new security require- Cargo offered some potential to expand carri-
documented, as is the arrival of ever more effi- ments, the post-dotcom bubble recession, and ers’ networks with limited extra costs; and on-
cient, cargo-friendly passenger aircraft, which improving trucking networks combined to help line sales portals such as GF-X and CPS tried
has also affected demand for freighters. push much of the US domestic air cargo mar- to generate air freight booking efficiencies by
ket from the air to the road. It also led to 15 offering a one-stop shop for customers in the
Meanwhile, the phenomenal effects of globali- years of little or no investment in the air car- emerging internet age. But these initiatives
sation − particularly the rise of China – have go infrastructure of many US airports and, to mostly under-delivered, although they created
shaped global air freight significantly and been some extent, its airlines. new opportunities for companies to talk with
shaped by it, supporting complex, interconti- one another.
nental supply chains and the development of In Europe, governments allowed the collapse
many emerging economy countries, lifting hun- of loss-making ‘national carriers’ including Leading carriers pushed for better terms to
dreds of millions of people out of poverty. Air Swissair and Sabena. The liberalisation of air reflect their investments in expensive aircraft
freight has also played a vital, life-saving role in traffic rights later encouraged the consoli- assets, but little came of these efforts. Faced
numerous humanitarian relief efforts over the dation of their down-sized successors within with mounting losses, some airline cargo exec-
last 15 years – as well as in healthcare supply the Lufthansa Group, just as it supported the utives agreed a surcharge mechanism which
chains. mergers of Air France, KLM and Martinair, not breached competition rules – resulting in large
to mention the later consolidation within IAG of fines from international competition authori-
But let me focus for a moment on a series of BA, Iberia, and Aer Lingus. ties.
events in the ‘noughties’ which shaped air
freight for more than a decade and still has Consolidating yet fragmenting
echoes today. Indeed, air freight volumes at Meanwhile, ever lower margins and investment
many US airports are only now recovering to capital within airlines’ cargo departments led
to accelerated outsourcing of cargo handling
and sales, further fragmenting an air logistics
9
Increased caution
This painful and expensive period for many of
the world’s leading air freight carriers added
to the financial pressures they were facing at
the time – pressures that would soon increase
further with the recession which followed the
global financial crisis. Several major freight for-
warders would also soon be fined for surcharge
mechanisms regarded as anti-competitive.
Moreover, companies’ increasingly cautious at-
titude towards talking publicly made our job as
journalists much harder.
Airline legacies
The evolution of aviation from being a highly
regulated, largely nationalised sector has tak-
en time to progress. The transition of air freight
forwarders from being the agent of the air-
line to the agent of the cargo owner, the ship-
per – only recently acknowledged formally via
the modernised IATA-FIATA cargo agency pro-
gramme – has meant that progress towards
creating a seamlessly connected air logistics
chain to rival that of integrators has mostly tak-
en place within the forwarder-shipper relation-
ship. Individual freight forwarding companies
have used this control, integration and visibility
of the overall air logistics chain as a competi- Future directions Spurred on initially by the threat of integrators
tive differentiator. Air freight finally seems to be back in a phase and now, 20 years later, by tech and eCom-
of relatively stable growth, accompanied by a merce disruptors and customers − and more
recovery in prices and more profitable airlines – demanding shippers from sectors such as
Cargo iQ factors which are allowing the sector to invest pharma − air freight is making significant pro-
As Cargo 2000 has slowly matured, reflected in again. Meanwhile, new technologies have ma- gress towards becoming a more connected,
its relaunch as Cargo iQ, it has been embraced tured and air cargo decision-makers have be- accountable and transparent mode of trans-
by more and more key participants – including come more comfortable with a digital environ- port. Leading forwarders have begun pro-
cargo handlers. And through the systems of ment which they can access via smartphones posing end-to-end digital offerings to SME
frontrunners such as Kuehne + Nagel, forward- and tablets, supported to some extent by a customers previously only enjoyed by ma-
er and shipper can now see directly in real time generational shift. Air freight frontrunners have jor shippers – and which appear to more than
the route plan for their shipment, its scheduled also been bringing in more expertise from out- match those offered by ‘disruptors’. And some
arrival time and where it is in that process. That side, particularly from the world of ICT, as well of the current premium solutions emerging for
was broadly speaking the original goal of Cargo as partnering and investing in innovative new high-value, high-priority cargo among the sec-
2000 when it was launched 21 years ago, albeit companies or ‘start-up incubators’. tor’s frontrunners seem likely, in time, to be-
not yet at piece level. And involvement of cargo Industry digitalisation efforts are beginning to come the norm.
handlers in Cargo iQ, accompanied by the nec- reach critical mass and air cargo communi-
essary investments, seems to be allowing air ty initiatives are encouraging the sharing and It has taken some time to get here, but it has
cargo to move beyond a blame culture to one more intelligent use of digital data. The price been a challenging journey – as a look back 15
which examines its performance successes and and ‘useability’ of Bluetooth, GPS and RFID is years shows. And in the meantime, air freight
failures and learns how to improve on an ongo- also becoming affordable for use within air car- has continued to get the job done, delivering
ing basis. go handling ‘sheds’, with frontrunners trialing the goods for the world’s just-in-time supply
or rolling out such technology. The opportunity chains – as the wings of globalisation.
to store and analyse the data generated is now
more easily available via internet-linked cloud
technology and the potential is only just begin-
ning to be explored.
11
Verticals – Pharma & Healthcare
CEIV: Striving for quality
can help save lives
Pharma logistics has always been one of Swiss WorldCargo’s
lines of business. In June, the cargo division of SWISS received
the CEIV (Center of Excellence for Independent Validators) Pharma
certification, acknowledging the high quality of its services in
this field. What are the benefits for pharma customers? And what
does the certification entail for the carrier?
In close cooperation with our partners and cus-
tomers alike, at Swiss WorldCargo we have con-
tinuously striven to further enhance our range
of pharma services. The latest milestone was
the alignment of all logistics processes in order
Text by Susanne Wellauer to obtain the CEIV (Center of Excellence for In-
dependent Validators) certification for pharma
It does not necessarily need to be a pandemic products as an airline.
such as SARS or Ebola – but one person cough-
ing in a subway station might seriously and Pharma logistics calls for inno-
unexpectedly put the health of entire commu- vative and standardised global
nities at risk. Global logistics networks can be infrastructure products. And, of course, we have invested
crucial to instantly provide the required medi- Switzerland is one of the world’s most impor- in the CEIV/GDP certification of the handling
cation and help to provide proper protection for tant chemical and pharmaceutical centers. facilities at the Zurich hub through our partner
the population. With a pharma exports volume of over CHF 80 Cargologic.
billion and a global market share of 8.6% in
However, it has to be ensured that sensitive 2016, Swiss-based pharmaceutical companies Mission accomplished: CEIV-
pharmaceutical products reach their destina- are today amongst the key drivers of Switzer- certified pharma services
tion in perfect condition in order to take full land’s economy. Of course, this fuels the strong After an audit performed throughout our net-
effect. For instance, maintaining an uninter- partnerships between Swiss global pharma work in February 2018, Swiss WorldCargo
rupted and temperature-controlled cool chain players and versatile providers of sophisticated, reached another important milestone and ob-
during the transportation of vaccines around tailor-made logistics solutions, such as Swiss tained the CEIV (Center of Excellence for Inde-
the world is generally a challenging task for all WorldCargo and its worldwide network of pre- pendent Validators) Pharma certification.
the players involved. It requires perfect and mium ground handlers and subcontractors.
transparent hand-in-hand interaction between The certification was secured following of a
pharma companies, airlines, ground handling At the cargo division of SWISS, we have always complex procedure which lasted about one
services, warehouse providers and forward- been working closely with the most influential year. During this time, all our processes for
ers according to mutual quality standards and pharma stakeholders in Switzerland in order to the transportation of pharmaceuticals were
safety regulations. provide innovative and customer-specific logis- reviewed thoroughly by independent experts
tic solutions for the transportation of (temper- across the whole organisation.
ature-)sensitive pharmaceutical samples and12
Verticals Pharma
Tapping synergies to create
added value
At Basel-Mulhouse airport, for instance, cus-
tomers can rely on a so-called Community
Approach, which has been set up by EuroAir-
port to implement the IATA CEIV Pharma cer-
tification programme in cooperation with oth-
er industry players operating at the airport site.
Swiss WorldCargo was the first airline to join
this community. Among the other stakehold-
ers are companies like Swissport, Fiege, WFS
(Worldwide Flight Services), and Fischer Road
Cargo.
For us and for our partners in the pharma sup-
ply chain, CEIV certification is a great step for-
ward in optimally meeting the requirements of
major international pharma organisations. It
helps to establish consistent standards for all
players in the industry to build on when further
Training Process description and enhancing global pharma logistics.
All the employees involved in the pharma logis- documentation
tics processes had to attend several class room- The new pharma logistics process descrip-
based and online training sessions which cov- tion is based on IATA, chapter 17, the Swiss
Swiss WorldCargo – customer-focused
ered topics such as general pharma awareness, WorldCargo Handling Manual (CHM) and the pharma logistics
Good Distribution Practices (GDP) regulations, GDP process defined by the WHO. The process Swiss WorldCargo has continuously striven to
temperature-controlled operations, etc. review covers everything from the quality man- further enhance its wide range of pharma
services by:
agement system documentation to on-ramp –– Forging powerful and versatile partnerships
Quality management handling activities. with premium ground handlers and forwarders
Some specific pharma-related KPIs were de- both at the Zurich hub and at Basel-Mulhouse
airport, Switzerland’s most important pharma
fined and introduced in order to continually as- How do pharma customers benefit transshipment point
sess and enhance the performance of pharma from CEIV certification? –– Initiating the CEIV/GDP certification of the
services. It is crucial that all pharma logistics partners handling facilities at the Zurich hub through
our partner Cargologic
cooperate to offer streamlined and certified –– Striving to establish “quality corridors” with
Subcontractor and supplier services including fast delivery and an uninter- certified partners between the world’s most
management rupted temperature-controlled supply chain. important pharma destinations
–– Offering passive solutions for temperature-
During the course of the audits, we also had to CEIV certification is an important tool to ensure
sensitive door-to-door shipments with our
check that all handling agents and forwarders optimal collaboration between all the stake- partner va-Q-tec
worked according to CEIV standards. holders along the pharma supply chain. –– Allowing tracking devices on pharma routes for
enhanced safety, visibility and transparency
At Swiss WorldCargo we have always made
every effort to achieve seamless collaboration Giancarlo Alessi, Head of Cargo at
internally and externally with highly proficient EuroAirport
premium partners – at the Zurich hub as well as “The programme participants are working closely
at Basel-Mulhouse airport and all international together to fine-tune and align interfaces with
the joint objective of delivering high-quality
destinations. standards and services at Basel-Mulhouse Airport.
It is all about good communication and pooling
our respective strengths to bring about a continu-
ous improvement process and create added value
for our pharma clients.”13
Interview with David Bang
CEO LifeConEx/Global Head of DHL Temperature
Management Solutions
“What makes you choose Swiss
WorldCargo as your partner for pharma
logistics? Which Swiss WorldCargo
services and advantages do you
particularly appreciate?”
Bang: When it comes to serving the life
sciences & healthcare industry, it’s all about
compliance, consistency and continuous im-
provement. And, it is crucial for us to work with
like-minded partners who understand this at
all levels of the organisation and that’s why
we work with Swiss WorldCargo as one of our
preferred partners. We particularly appreciate
David Bang
Swiss WorldCargo’s top management’s commit- CEO LifeConEx/Global Head of DHL Temperature
ment to join us on the journey to continuously Management Solutions
improve quality and bring about innovation.
“What are the reasons for you choosing Practices) certification programmes are often
CEIV-certified logistics partners?” limited to those countries alone. Therefore a
It’s all about a risk-based approach, which is country-specific certification has its limitations.
not just our approach but that’s how pharma- However, CEIV is a global standard for IATA
ceutical manufacturers manage their vendors as which has over +200 member airlines represent-
well. In other words, if you are a CEIV-certified ing pretty much all the relevant countries which
logistics partner, we see you as a low-risk suppli- export or import pharmaceutical products.
er, therefore we do not need to audit you often.
Some country-driven GDP (Good Distribution
Susanne Wellauer
Susanne Wellauer began her career at Swissair
in 1996 as Cargo Expert in Basel. Since then she
has held several Sales and Marketing positions at
Swisscargo and Swiss WorldCargo based in
Switzerland. Before being appointed Vertical In-
dustry Manager Pharma & Healthcare in 2014,
she was the Cargo Manager for the Basel region.
In her current role, she monitors the industry
needs and trends on a global scale and liaises
closely with cold chain experts at freight forward-
ing companies as well as with major pharmaceuti-
cal and healthcare companies.
Follow Susanne Wellauer on LinkedIn.15
Verticals – Pharma & Healthcare
Success Story
When time matters
Advanced Accelerator Applications (AAA), a market leader in the
development of molecular nuclear medicine diagnostics and
therapeutics, entrusts the shipment of LUTATHERA®*, a highly
time-critical and sensitive radiopharmaceutical, to the forwarding
agent PHSE and Swiss WorldCargo. From Northern Italy, via Zurich,
to locations around Europe and the US in 48 hours.
Text by Silvia Cappelli
The radiopharmaceutical company AAA, which
was recently acquired by Novartis, has been de-
veloping, producing and marketing innovative
drugs in the area of nuclear medicine for over
15 years. One of the latest developments in the
France-based company’s therapeutic portfolio From left: Fulvio Stolpe, Sales Executive Pharma & Food
is “Lutathera” a prescription medicine used to Specialist, Swiss WorldCargo Italy - Enrico De Maria, CEO,
treat adults with a rare cancer. Advanced Accelerator Applications Italy, Alessandro Colasi,
Head of International Department, PHSE
“Lutathera” is comprised of a targeting mol-
ecule which has a high affinity for a receptor
over-expressed on these tumor cells and carries
a radioactive isotope. Due to its small radioac-
tive component, “Lutathera” cannot be kept in “Time is everything and logistics is of the es-
storage and must be administered to patients sence for the effectiveness of this drug,” ex-
within 72 hours of production. plains Enrico de Maria, CEO of AAA Italy. “Can-
cer patients are scheduled for treatment at
After in-depth clinical trials, the radiopharma- oncology centres around Europe and the US,
ceutical was approved by the healthcare regu- and if the shipments do not reach them on
latory authorities in Europe in September 2017 time, the drug becomes useless.” For this rea-
and in the US a few months ago. “Lutathera” son, building up effective partnerships with
doses are delivered on a regular basis from freight forwarders and cargo carriers specializ-
AAA’s manufacturing sites in the northern Ital- ing in pharmaceutical logistics is of vital impor-
ian regions of Piemont and Emilia Romagna to tance.”
far-flung destinations routinely and reliably.
For “Lutathera”, AAA has selected a forward-
ing agent: PHSE, a global provider of custom-
ised logistics solutions, highly specialised in
the biopharma and healthcare areas. “The col-
*(USAN: lutetium Lu 177 dotatate / INN: lutetium (177Lu) oxodotreotide)sia
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Verticals – Pharma & Healthcare
Success Story
leagues from PHSE listened to us very patient-
ly to understand our needs and find a custom-
ised solution together,” De Maria says. “In our
partnership, we have developed an intimate un-
derstanding of each other’s business and es-
tablished efficient and open communication
lines which ensure the reliability of supplies to
patients around the world. In particular, the ex-
perts at PHSE have acquainted themselves with
the intricacies of the radiopharmaceutical busi-
ness and its special constraints.”
According to Alessandro Colasi, Head of Inter-
national Department at PHSE: “Air transpor-
tation is considered as the weakest link in the
shipment of pharmaceuticals, so from our end
AAA
it is also important that we work with a highly
AAA has 20 production and research & de-
reputable airline which is able to offer ultra-fast velopment facilities which manufacture both
transit times, and customised, care intensive diagnostic and therapeutic nuclear medicine
solutions. In the specific case of “Lutathera”, products and over 650 employees in 13 countries
(Belgium, Canada, France, Germany, Israel,
due to the radioactive component, the highest Italy, The Netherlands, Poland, Portugal, Spain,
quality standards in relation to handling dan- Switzerland, the UK and the US). The company
gerous goods are also a must.” “Moreover, the biotech logistics sector is in- was acquired by Novartis in 2018.
More information at www.adacap.com
creasingly oriented towards process standard-
Even though the shelf life of “Lutathera” is 72 isation. At PHSE we believe the CEIV Pharma PHSE
hours, shipments have to be delivered with- Certification is an added value and the certifica- PHSE is a family-owned international forward-
in 48 hours from production. PHSE and the tion process is ongoing. Of course, we choose ing company headquartered in Legnano (Milan)
whose aim is to create long-term relationships
Swiss WorldCargo’s Italian Sales team based in quality-oriented partners like Swiss WorldCargo with its customers, providing a specialized, fast
Milan were able to find a tailor-made solution which are also certified,” Colasi concludes. and reliable door-to-door service in the biophar-
for “Lutathera”. Space is blocked one week in ma and healthcare sector. PHSE has over 250 of
its own temperature-controlled vehicles (Vans,
advance. The shipments are picked up by tem- Irregularities can always occur however. “It has lorries and trucks) all GPS-equipped, 13 branches
perature-controlled vans from PHSE’s fleet at only happened once,” De Maria remarks. “One full GDP all over Italy and 3 branches overseas
the AAA manufacturing sites during the night day a “Lutathera” shipment had to be offloaded (USA-UK-Singapore). All the drivers are PHSE’s
employees which guarantees the quality of
and they are transported to Milan Malpensa because of another shipment on board which service.
MXP early in the morning to be loaded onto the could not be transported together with danger- More information at www.phse.com
first SWISS flights to Zurich to be further trans- ous goods. Believe me, it was one of the sad-
Dangerous Goods
ferred onto connecting flights. “SWISS’s trans- dest days of my life, thinking about the person
Nuclear medicine uses very small amounts of
fer times are unbeatable!”, Colasi comments. who missed the chance of being treated.” radioactive materials (radio-pharmaceuticals or
radiochemicals) to diagnose and treat diseases.
In Colasi’s words: “At Swiss WorldCargo, we Such materials can be shipped by air cargo in
accordance to the IATA Dangerous Goods Reg-
have always found support when facing the ulations (DGR). Dangerous goods as defined in
most difficult challenges. Their manageable the IATA DGR are shipments which, owing to their
size and dedication is a real advantage, they chemical and/or physical characteristics, could,
if uncontrolled, adversely affect the safety of the
have always been able to find the best solu- passengers, crew and/or aircraft on which they
tions for such a challenging, as well as during are carried.
the development of the clinical study, showing
SWISS’s compliance with the current IATA
an understanding for the ethical concerns of DGR, which are revised every year, is man-
our business.” datory. Therefore, all SWISS facilities world-
wide have to be inspected at least once a year.
Swiss WorldCargo’s Processes & Policies unit is
responsible for the planning, coordination and
performance of such inspections, for all associ-
ated record-keeping and for planning any actions
or improvements required. All staff involved in
handling dangerous goods must undergo a 5-day
training course. One day is entirely dedicated to
radioactive materials.18
19
Digitalisation
Dangerous Goods Declaration
is going digital
With eDGD, Swiss WorldCargo is implementing another
innovative and comprehensive service as part of its
customer-oriented digitalisation strategy.
Text by Fabian Mettler
“eDGD is a powerful step forward for the
freight industry, and the digitalisation of
this offering can translate to direct benefits
for Swiss WorldCargo customers”, declared
Ashwin Bhat on March 15, during the IATA
World Cargo Symposium in Dallas. When dis-
cussing the eDangerous Goods Declaration, a
collaborative effort between Swiss WorldCar-
go, Lufthansa Cargo, Air France/KLM and Car-
gologic, he mentioned this initiative as high-
lighting the continued steps Swiss WorldCargo
is taking to digitalise its offerings.
eDGD will also allow for direct integration into
The launch of the eDGD is designed to offer an a reservation system, based on the same elec-
efficient, standardised dangerous goods appli- tronic standards previously defined by IATA.
cation and system. By offering a harmonised While Lufthansa Cargo and Air France have de-
process, the eDGD can offer full monitoring veloped their own systems, Swiss WorldCargo
and a detailed overview of the shipment of dan- and IG AirCargo (Interest Group Air Cargo Swit-
gerous goods worldwide. Likewise, by replac- zerland) have begun to work with with the com-
ing the paper declaration for dangerous goods, pany DGOffice. Swiss WorldCargo is currently
which has become an industry staple over the developing its own pilot alongside one of its
years, eDGD is a true changer. Not only is it dig- business partners, the Swiss based freight for-
italising, but also creating and adding new ef- warder Gerhard Wegmüller.
ficiencies by moving towards paperless decla-
rations, and thus offering a digital overview of While the project is an exciting development in
how dangerous goods are being shipped. the entire air cargo industry, Swiss WorldCargo
will focus on making it most beneficial to our
Swiss WorldCargo is developing eDGD as part customers. “We believe that the platform will
of an efficient dangerous goods application make shipments easier and facilitate smooth
and system. The project is currently in its proof communication both internally, as well as be-
of concept phase, but is expected to evolve tween us and our global customers,” com-
greatly in the coming year. While the aforemen- ments Paolo Tuzzi, Manager Transportation
tioned paperless platform, digitalisation, and Processes at Swiss WorldCargo. “Following its
highlighted new efficiencies are all important, development, it will lead to an efficient, modern
eDGD is also notable for aiming to lead to bet- collaboration between our various partners and
ter transparency, traceability, and data quality. stakeholders in the supply chain.”20
Utopia/Distopia
Futurama – enabling
future air cargo leaders
to shake things up
In fifteen years from now, air cargo will be led
by people who were born in the same decade as
Cargo Matters. How will we enable them to create
the future of air cargo?
Text by Joachim Ehrenthal
The other day, I read an article. The article was
about how a robot had just passed the written
test in China’s national medical licensing exam-
ination, with flying colours and within a frac-
tion of the time allowed. Nowadays, we’re used
to supercomputers beating humans at board
games nobody cares about. Like chess. But be-
coming a doctor? That’s awfully close to what
we’re doing in logistics. Except we don’t tinker
with intestines, but with boxes. The robot pulled
it off by devouring tons of medical textbooks, Prof. Dr. Joachim Ehrenthal (left today, right 15 years ago)
and millions of medical records and scientif- Joachim is the founder and owner of joe.systems AG, an IT firm for automated origin
ic articles. Just about the single most dreary compliance. He is also Professor for Business Information Systems at the University
thing imaginable. Trust me. I am a doctor. of Applied Sciences and Arts Northwestern Switzerland FHNW, specialising on
accelerating the implementation of new supply chain tech.
Did my studies prepare me for being
outsmarted by a robot? No.
Something similar struck me, when I ordered a
pair of bright red swimming shorts for this sum- Did my studies prepare me for such
mer. I needed a pair and I was eager to try out lightning-quick delivery times? No.
this new online platform which had just secured And my studies did not prepare me for closed
another cool $397 million from investors. And the platform delivered. It took just four loop supply chains becoming a reality either.
The platform connects local boutiques to a days. Shipped from a small boutique in Hunga- Nor decarbonisation. Like Apple is pushing for
global customer base, taking care of payments, ry which happened to have my size. Not from a with its suppliers so that they can cleverly turn
customs, taxation and shipment. I ordered out conveniently placed warehouse or central logis- green and sell us the same materials time and
of professional curiosity as well, awaiting the tics hub. Had I paid extra, it would have been again, just as different products. Yes, I learned
day when all online retailers on this planet no- quicker. about reverse logistics, recycling, and emis-
tice that importing stuff into Switzerland is nei- sions trading. But mainly about flaws, not busi-
ther rocket science, nor expensive. Because it Next night delivery is do-able for well-organized ness opportunities.
simply isn’t. EU-retailers for shipments to Switzerland. With-
in Switzerland, same-day delivery is becoming
as common as everywhere else. So, essentially,
we’re just about 8 hours away from anything,
anywhere, anytime (for make-to-stock items in
urban areas).21
Aquarelle painting by Dorottya Zaban,
Supervisor Contribution Optimizer
EU & IC at Swiss WorldCargo
So, what should we prepare the
future leaders in air cargo for?
Nothing. Why?
Because we can’t. You can prepare a dinner
or a weekend trip. The future you must build.
Which means actually doing things and not sit- We need more education like we see in pro-
ting around in classrooms getting all prepared. gramming and IT today – letting students solve
problems with the programming language they
Instead, let’s enable the new generation to have just learnt. Not in month-long projects,
create their own future. Keep the basics to a but in a few hours. Under competitive pressure.
well-executed minimum, jump right in, unleash Not force-fed abstract stuff miles away from
creativity and feed competition. With minds where it happens. Let’s have more action ori-
set to solving problems which matter. Because entation like we know from training nurses and
when problems matter, there is money to be doctors in hospitals – touch a patient who has
made. It’s that simple. Rather than focusing on had an electric shock without shutting off pow-
the 1,000 tools which were best practice back er and you’re out. It’s these real-life experiences
in the day, future leaders in air cargo need to be which make the important things stick.
geared to act fast and precisely. Understand-
ing a problem, finding the right tool to solve it, Finally, let’s combine the doing with what we
teaching themselves how to use it, and putting know we will be facing us in the short-term. Like
it into action. The world is moving too fast for mastering the changes which supercomputers
anything else. And it’s much more of a realistic will bring about in air cargo (singularity), work-
expectation level than 100% shelf-ready gradu- ing towards anything, anywhere, anytime logis-
ates with all the bells and whistles. tics (ubiquity), and closing energy and mate-
rial loops (circularity). Because that is exactly
where the new leaders can shake things up and
create new business.22
Experts‘ Views – eCommerce
How to find the perfect
middle mile provider
The eCommerce ecosystem is based on the collaborative effort of several
providers, with each one playing a specialist role. The role of air cargo
and “middle mile delivery providers” in this business is becoming
increasingly complex. In fact, as online shopping and cross-border
eCommerce volumes continue to grow in 2018, end consumers expect
much more than just speed of delivery. Swiss WorldCargo is preparing
to take up the challenge and seize the opportunity.
In the eCommerce ecosystem, the logistics
services required (warehousing, inventory,
packing, shipping, tracking and last mile de-
livery) are rarely provided by one single com-
pany. Therefore, “end-to-end visibility” of
eCommerce shipments is the result of the col-
laborative effort of several players. Middle mile
providers must also invest in the technology
which allows end-to-end tracking and instant
notification.
At Swiss WorldCargo, we are ready to meet
these needs. Using block chain technology,
Swiss WorldCargo has developed a platform
capable of linking all the references existing
throughout the eCommerce logistics chain, so
that regardless of which player has which ref-
erence, they can always trace their goods. In
Text by Silvia Chacon-Ramos
addition, this platform can send information to
the forwarders’/consolidators’ own platforms
Based on the key-note speech delivered at with last mile delivery providers, if needed, then
the “Experts’ Sessions” on eCommerce at having dual, bi-directional integration which
WCA Worldwide Conference, Singapore, enhances the buyer’s shopping experience
6th March 2018. right till the end.
Cross-border eCommerce is booming. Accord- Currently, we are conducting pilot shipments
ing to IATA, online sales are expected to reach with several partners (such as BEX, member of
3.5 trillion by 2019! Speed of delivery is of the WCA) for the de-consolidation, customs clear-
essence and for this reason eCommerce is one ance and last mile delivery to end consumers’
of the major drivers of the growth of air freight. homes. The minimum viable product which is
Speed is not everything though: shoppers de- being tested includes the integration of the car-
mand better control over how, when and where rier’s tracking system with those of their direct
their goods are delivered. They want flexibility customer (forwarder or consolidator) and that
over delivery times and locations, they want to of the last mile delivery provider, which brings
be kept in the loop and they want easy returns, total end-to-end visibility on a parcel level.
all of which has an impact on the service offer
of most logistics providers.23
At the Experts’ Sessions on eCommerce at WCA of meeting industry needs. Do you also think
on 6th March, I had the opportunity to explain that we are on the right track to become the
how we are fine-tuning our airport-to-airport “perfect” middle mile delivery partner?
and warehouse-to-airport solutions for eCom-
merce to help our customers bridge the gaps in I would be delighted to share more information
the chain and help them offer a perfect service. with you and discuss further ideas if you wish.
Here is what we plan to offer: Please contact me via e-mail at:
–– End-to-end visibility and track & trace silvia.chaconramos@swiss.com
with IT integrated and state-of-the art
technology
–– LMD labels provided to packing teams at
the point of origin
–– Average delivery 3 to 4 days
–– Worldwide coverage
–– DDP/ DDU customs clearance
–– Solutions for returns and undeliverables
The session was very lively, framed by great
complementary speeches from other col-
leagues in the industry and dynamic and inter-
active exchanges during the panel discussion
which followed. It really looks like Swiss World-
Cargo could be hitting the right mark! All the
feedback was enthusiastically positive in terms Silvia Chacon-Ramos
Senior Manager Vertical Industry Postal Business & eCommerce
at Swiss WorldCargo
Follow Silvia Chacon-Ramos on LinkedIn.
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B2C Solutions – Export Office Zurich
5-star transportation
solutions
What do the concierge of a 5-star hotel
like the Savoy Baur en Ville in Zurich and
the Swiss WorldCargo Export Office have
in common? No request is too unsual or
too difficult for them!
Text by Silvia Cappelli
There once was a shopaholic princess from the
Middle East, who went on a European shopping
spree. After treating herself in the boutiques of
London, Paris and Milan, she decided to spend
the last few days - and some more money - in
Zurich. In the Swiss financial capital, she stayed
at the luxury Savoy Baur en Ville Hotel, located
in the heart of the city’s shopping area. When
the time came to fly back home, the princess’
valet needed as many as 50 suitcases to pack
all her purchases. The princess did not own a
private jet, so the valet had to ask the concierge
for help in organising the transportation.
As head concierge of the five-star hotel for the
last 25 years - and as a member of the Clefs
d’Or association - Mr Luis Avin is the “hero” of
many stories like this one. I asked him what the
strangest request he had ever received was, but
nothing seems to be too strange or too difficult
for him anymore. For Mr. Avin, a request for the
delivery of donkey milk or dealing with 50 or 60
extra pieces of luggage is all in a day’s work. If,
in order to find the donkey milk, he had to call
all the farmers in the Swiss mountain region of
Graubünden, for the shipment of the princess’
extra luggage he only had to make one call: to
the Swiss WorldCargo Export Office.
The concièrge team of the Hotel Savoy Baur en Ville, Zurich.
From left: Roberto Kostovic, Luis Avin, Filipe Fernandes25
Export Office team. From left to right:
Bettina Donzel, Daniel Winkler, Denise
Ochsner, Rosanna Novelli, Dominic Peter,
Andrew Brechbühl
Sometimes the packing can be an additional
challenge: as was the case for a hotel’s guest
from Asia who had received two cartons of
wine as a gift and who - despite the shipment
costing more than the wine itself - could have
never left it behind. Or the case of a South Afri-
can lady, who had purchased some fine porce-
lain and needed to have it sent back home: the
concierge staff had to wrap up the items one by
one before they were shipped.
“The Swiss WorldCargo Export Office team
In actual fact, Swiss WorldCargo does not only makes it all easier for us: even at short notice,
specialise in the transportation of large cargo they always have a solution. They provide de-
volumes on behalf of freight forwarders. The tailed packing instructions for any kind of ship-
Export Office team based at Zurich Airport has ment, all the documentation for customs clear-
built up an impressive portfolio of private cus- ance and, last but not least, they offer a pick-up
tomers too. People who are going on holiday service at the hotel which provides real added
and do not want to leave their dog behind, peo- value. The guests at a luxury hotel, like the Sa-
ple making a fresh start in a new country and voy, can only expect a “5-star” transportation
who need to ship their furniture and personal service. The Swiss WorldCargo Export Office is
belongings, people who have always dreamt the airport branch of our concierge!”
of riding their own motorbike down Route 66,
are all potential customers of the Swiss World-
Cargo Export Office. “The list is as long as the The Savoy Baur en Ville Hotel at a glance
needs are diverse,” says Dominic Peter, who The Savoy Baur en Ville is one of the oldest and
leads this five-strong team. ”Like the concierge most luxurious hotels in Zurich. Founded in 1838,
the hotel is centrally located on Paradeplatz,
of a 5-star hotel, no request is too bizarre or im- between the old town, the banking district and
possible for us, be it a vintage car worth several the “shopping mile” Bahnhofstrasse. Tasteful
million Swiss Francs destined for a car show, or decor, modern amenities, warm and personal
hospitality as well as fine dining make this hotel
an anteater which needs to be relocated from one of the most exclusive hotels in Zurich.
one zoo to another for reproduction purposes.”
More information at:
www.savoy-baurenville.ch
Is the story of the princess and her extra lug-
gage starting to sound boring to you? Well, you
haven’t heard it all. “The main challenge for The Swiss WorldCargo Export Office
at a glance
such shipments is the short notice involved.
With a team of five skilled professionals located
Guests usually do not realise they have “too
at Zurich Airport, the Swiss WorldCargo Export
much luggage” until the moment they check office offers tailored transportation solutions in
out”, explains Avin. “Moreover, due to the re- and outside Switzerland, for private customers.
hotels and travel agencies, small and large com-
strictions on the transportation of certain items
panies, universities, hospitals, research centres,
on aircraft, we always have to check the con- pharmaceutical companies and funeral parlours.
tents of the suitcases: sometimes the amount The Export office offers several delivery options
(airport-to-airport or door-to-airport) all over the
of cosmetics in the form of spray cans or per-
world and handles all transportation and customs
fume bottles is so large that a special declara- formalities for its customers.
tion is required.” Avin continues. “In this way,
More information at:
we can ensure that items of luggage do not
www.swissworldcargo.com/products_solu-
get opened for inspection and are delivered on tions/special_products/personal_belong-
time”. ingsYou can also read
