Impact Publications : Aircargo_241
Page 6 • AirCArgo AsiA-PACifiC • FEB-MARCH 2016 comment Give TPP a chance - it’s imperfect but no threat to democracy FLAWED though it may be, the Trans Pacific Partnership agreement (TPP) is advantageous to both Australia and New Zealand not only in terms of national economics but also for their freight sectors. As discussed in an earlier report, a seemingly-unbiased academic assessment of the short-term benefits showed Australia was not listed among the top regions and NZ was only a little better. But we cannot afford not to be part of the agreement, especially with more Asian countries indicating an intention to become involved. While China may not join for a while, it seems likely that its giant economy – already intertwined with NZ and Australia through FTAs – will become a signatory eventually. And as former trade minis- ter Andrew Robb said recently, when combined with the parallel Regional Comprehensive Economic Partnership, which includes China, a strong platform is being built for a unifying set of trade rules in Asia-Pacific. This reduces costs, makes it easier to trade and increases cer- tainty for exporters and importers. Australia and NZ will prosper not only from trade but through our regional transport and logistics capabilities. And as Asian econ- omies build up sustainable speed we will gain further ground in supply of food and other commodities. TPP got off to a bad start with the general public because of its absolute secrecy, which led to swirling rumours of democratic in- cursions and personal restrictions. Unfortunately this is an essential factor of high-level negotiations if an agreement acceptable to all is to be delivered with a reasonable expectation of progressing. Perhaps the most worrying aspect of the protests is the spread of misinformation. For example, the Investor State Dispute Settlement (ISDS) mechanism is portrayed as an evil (to use one of the more palata- ble descriptions) threat to national democracy when it is anything but. Not only are there similar provisions in other FTAs but there is no erosion of sovereignty other than the give-and-take required from membership of the United Nations or any other international relationships. ISDS is narrowly drafted, will be played out in a neutral environ- ment, is only likely to be triggered for the most egregious behav- iour and is far preferable to fighting out an issue in a local court. It is a straightforward means of arbitration, with areas such as public health, safety and environment precluded. NZ even negotiat- ed protection of its obligations under the Treaty of Waitangi. Give TPP a chance. It might not gain ratification – that might swing on whether Donald Trump secures the US presidency – but fighting it with misinformation is against the national interest. - Kelvin King Market share in decline at the top forwarders WORLDWIDE air cargo volume increased by two per cent in 2015, however, the top 20 forwarders saw their worldwide market share decline from 44.5 to 43 per cent (based on revenue measured in USD) according to WorldACD. Their volume share dropped from 43 to 42 per cent. The Amsterdam- based air cargo analyst bases its figures on the inputs of more than sixty (mostly large) airlines, that provide their full worldwide AWB data every month. The top 10 forwarders remained unchanged from the previous years. The group accounts for 32 per cent of air cargo volume. Not only the composition, but also the ranking within the group, remained the same as in 2014. Behind DGF, the largest forwarders were Kuehne + Nagel, DB Schenker, Expeditors and Panalpina. K+N, Expeditors, Nippon Express, CEVA and DHL Express achieved growth exceeding the worldwide average of two per cent, whilst DGF, DB Schenker, Panalpina, UPS SCS and Kintetsu lagged behind. As in 2014, airlines saw the average yield realised through large agents drop more than the yields realised through the group of forwarders outside the top100. Differences between best and worst performers in each group were significant. In the top10, the volume growth ranged from -10 per cent to +7 per cent. Among numbers 11-20, the numbers varied be- tween -10 per cent and +11 per cent. The group of the top 100 forwarders saw growth of 0.9 per cent, and the many thousands of forwarders outside the top 100, accounting for 43 per cent of total busi- ness, achieved better results with an average growth of 3.8 per cent. Emirates splits US ops into three new regions DUBAI-based Emirates SkyCargo has restructured its USA operations, with a team of three execu- tives to manage the market under Duncan Watson, vice president of Emirates’ cargo commercial operations. The three departments are: Los Angeles, (the West Coast and including its GSSA in Mexico); Chicago including the Midwest and New York.