10. richard macomber

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10. richard macomber

  1. 1. The View From The Top <ul><li>A shippers perspective of air cargo services available in: </li></ul><ul><ul><li>Brazil </li></ul></ul><ul><ul><li>India </li></ul></ul><ul><ul><li>China </li></ul></ul><ul><ul><li>Russia </li></ul></ul>R.W. Macomber IBM Corp September 14, 2006
  2. 2. IBM Is a Large Air Freight User <ul><li>2005 - INTERCOUNTRY </li></ul><ul><ul><li>Weight – 91,290,000 Kilos </li></ul></ul><ul><ul><li>Equivalent = 22 + - 747/400 F (Max Load) </li></ul></ul><ul><ul><ul><li>Every Day of the Year </li></ul></ul></ul><ul><li>Does not include Domestic Intracountry Air Freight </li></ul>
  3. 3. IBM Is Transforming Into a Globally Integrated Enterprise <ul><li>Entering New Markets </li></ul><ul><ul><li>China </li></ul></ul><ul><ul><li>India </li></ul></ul><ul><ul><li>Russia </li></ul></ul><ul><ul><li>Brazil </li></ul></ul><ul><li>Establishing Deep Local Roots </li></ul><ul><li>Gaining Access to a Wealth of talent and skills </li></ul><ul><li>Scaling This Wealth Globally </li></ul>
  4. 4. BRIC Countries are Important World Players <ul><ul><li>United States – Population approximately 300 Million </li></ul></ul><ul><ul><li>Brazil - Population – 186 Million </li></ul></ul><ul><ul><li>Russia - Population – 142.7 Million </li></ul></ul><ul><ul><li>India - Population – 1.1. Billion </li></ul></ul><ul><ul><li>China - Population – 1.3 Billion </li></ul></ul><ul><ul><li>BRIC Country Population = 9 times USA </li></ul></ul>
  5. 5. BRIC Countries Command Eight (8) Positions in World’s Top 50 Cargo Airlines <ul><ul><li>Cathay Pacific </li></ul></ul><ul><ul><li>China Airlines </li></ul></ul><ul><ul><li>Air China </li></ul></ul><ul><ul><li>China Eastern Airlines </li></ul></ul><ul><ul><li>Varig </li></ul></ul><ul><ul><li>China Cargo Airlines </li></ul></ul><ul><ul><li>Aero Flot </li></ul></ul><ul><ul><li>Air India </li></ul></ul>
  6. 6. BRIC Countries Command Nine (9) Positions in World’s Top Cargo Airports <ul><li>Hong Kong </li></ul><ul><li>Shang Hai Pudong </li></ul><ul><li>Beijing </li></ul><ul><li>Guangzhou Baiyun </li></ul><ul><li>Sao Paulo </li></ul><ul><li>Mumbai </li></ul><ul><li>New Delhi </li></ul><ul><li>Shang Hai Hong Qiao </li></ul><ul><li>Shenzhen </li></ul>
  7. 7. Forecasters Predict Growth in World Air Cargo and Freighters <ul><li>CGR In Freight Ton kilometers </li></ul><ul><ul><li>2009 - 5.6% </li></ul></ul><ul><ul><li>2010 - 6.4% </li></ul></ul><ul><ul><li>2015 - 6.8% </li></ul></ul><ul><ul><li>2023 - 6.2% </li></ul></ul><ul><li>Dedicated Air Freighters </li></ul><ul><ul><li>2009 = 2,132 </li></ul></ul><ul><ul><li>2023 = 3,616 </li></ul></ul><ul><ul><li>2026 = 3,560 </li></ul></ul><ul><ul><li>Sources: Various </li></ul></ul>
  8. 8. Brazil <ul><li>FedEx – Services Daily - DC – 10 </li></ul><ul><ul><li>Fridays and Saturday – MD – 11 </li></ul></ul><ul><li>Varig Recently Sold to U.S. Private Firm </li></ul><ul><li>Very Limited Air Freighter Service </li></ul><ul><ul><li>Mostly Passenger Belly Cargo </li></ul></ul><ul><li>No Problems with Air Freight Forwarders </li></ul><ul><li>Intracountry Distribution Is Limited </li></ul><ul><ul><li>Terrain And Remote Areas </li></ul></ul><ul><ul><li>Mostly Truck and Rail </li></ul></ul><ul><li>Cargo Security Is A Concern </li></ul><ul><li>Great Potential For Significant Growth </li></ul>
  9. 9. Russia <ul><li>Majority of shipments – Import/Export – Via Truck </li></ul><ul><li>Utilize KLM and Lufthansa for Emergency Shipments </li></ul><ul><li>Limited Air Freighter Capability </li></ul><ul><li>Rates are Moderating Due to Increased Trade </li></ul><ul><li>No Problems With Air Freight Forwarders </li></ul><ul><li>Intracountry Distribution Is Limited </li></ul><ul><ul><li>Terrain, Remote Areas, Industrial Center </li></ul></ul><ul><ul><li>Several Domestic/International Airports under Construction (e.g.Siberian K-Y Airport) </li></ul></ul><ul><li>Probably Slowest Growth of Bric Countries </li></ul><ul><li>Traditional Security Problems and a Concern </li></ul>
  10. 10. India <ul><li>Many Airlines Servicing Major Cities Including Air Express Companies (Mumbai and Delhi) </li></ul><ul><li>48 Hour Access to Europe/Asia/U.S.A. </li></ul><ul><li>Domestic Flight Capability is Only Adequate </li></ul><ul><li>FedEx – 16 Weekly Flights Plus Commercial Airlines </li></ul><ul><li>Several Asian Carriers Provide Service to India </li></ul><ul><li>Fuel and Maintenance Costs are Relatively low </li></ul><ul><li>No Problems With Air Freight Forwarders </li></ul><ul><li>Great Potential For Significant Growth </li></ul><ul><li>Potential Security Problems For Air Cargo In Some Airports and the Expectation of airport Delays </li></ul>
  11. 11. China <ul><li>Open Skies Agreements with U.S.A. In Process </li></ul><ul><li>Serviced by Air Express/All Freighter and Passenger airlines – Many Nationalities </li></ul><ul><li>Air Freight Domestic Service to 220 Cities in China </li></ul><ul><li>Some Prohibited and Dangerous Goods Not Permitted on Air Freight </li></ul><ul><li>Multiple Joint Ventures/Consolidation In Progress </li></ul><ul><li>Fuel and Maintenance Costs are Relatively Low </li></ul><ul><li>Still Maintains “Class A” Forwarder Regulations on air Cargo Operations and Ownership – WTO? </li></ul><ul><li>China Will Continue To Experience Significant Growth </li></ul><ul><li>U.S. Regulatory Agencies Still Barred From Air Security Inspection </li></ul>
  12. 12. Questions <ul><li>Quarter and Year End Capacity – How Can You Help? </li></ul><ul><li>How Can We Improve Air Cargo Security Together? </li></ul><ul><li>What Countries Are The Next Growth Areas? </li></ul>
  13. 13. <ul><li>THANK YOU ! </li></ul>

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