March 31st 2016, Industry Insight

CARGO LOSSES TOP $55BN IN 2015

ASIA-EUROPE SPOT RATES RISE AFTER BRUSHING RECORD LOWSHONG KONG PORT VOLUME CONTINUES TO FALL

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INDUSTRY NEWS

World Cargo Symposium Concludes with initiatives on innovation and safety page 3

Team effort needed to improve value of air cargo page 4

Hong Kong Port volume continues to fall page 5

Asia-Europe rates rise after brushing with record lows page 6

COMPLIANCE CORNER page 7

Heightened Supply Chain Security in the shadow of risk page 8

Ten reasons to clean up your supply chain page 9

Brussels clears cargo backlogs as freighter schedule normalises page 10

Contents

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http://www.lloydsloadinglist.com/freight-directory/news/World-Cargo-Symposium-concludes-with-initiatives-on-in-novation-and-safety/65914.htm

The International Air Transport Association (IATA) concluded its 10th World Air Cargo Symposium (WCS) this week with new commitments and initiatives to deliver greater value to customers and enhance air cargo’s ability to bring economic and social benefits to the world.

IATA’s global head of cargo, Glyn Hughes, said the air cargo industry had experienced a rollercoaster ride over the last decade, but a record attendance of over 1,100 delegates in Berlin this year showed a commitment to share best prac-tice and generate action plans to tackle the industry’s great-est challenges.

“Discussions over the last few days at the WCS have focused on the challenge of potentially disruptive new technologies and changing business models. The international economy is also changing, as growth markets mature and the global supply chain evolves,” Hughes observed. “Air cargo must be ready for this uncertain future.”

The WCS saw a number of key announcements in line with this year’s agenda, to deliver industry transformation through greater innovation and improved safety.

The various executive forums at the WCS continued to dis-cuss the issue of lithium batteries, and IATA has undertaken to look at measures to track, measure and report on lithium battery incidents.

Additionally, the industry will step up its campaign to de-mand stronger oversight of the battery manufacturers and firm penalties for anyone found in breach of the Dangerous Goods Regulations. Coalition-building with the representa-tive organizations of the world’s battery manufacturers will be pursued.

On Unit Load Device (ULD) safety, a campaign was launched to reduce the number of ground handling incidents involv-ing ULDs, to minimize flight safety risk and reduce the num-ber of incidents of aircraft and container damage from mis-handling.

“The greatest cause of aircraft damage from ground load-ing equipment is from mishandled ULDs,” said Hughes. “In addition to the high costs involved in repairing damage to aircraft, maintenance to ULDs also incurs significant costs.”

Last year the industry’s ULD repair bill was $330 million however it is estimated that 80% of these costs could be saved through correct handling. The campaign will be rolled out across the industry throughout 2016 in parallel with the ULD Regulations (ULDR), a single set of regulatory require-ments and industry standards applicable to overall ULD op-erations.

In terms of simplifying the business of cargo, IATA said con-tinued innovation in the passenger side of commercial avia-tion had simplified processes and given the customer much greater control and self-service over their journey. Use of new technology, enhanced use of data and digital informa-tion sharing, and streamlined regulatory processes have im-proved the passenger experience and cut costs for airlines.

It said similar breakthrough innovations are urgently re-quired in the air cargo business to give greater customer value and increased efficiency. “The opportunity to simplify air cargo must be seized if we are to be a business fit for pur-pose in a constantly-changing economic environment with ever-more specific customer requirements. IATA is commit-ted to working with the industry to apply our ‘simplifying the business’ expertise to assist the industry,” said Hughes.

Continuing attempts to improve the pharma supply chain were also underlined as an agreement for a new CEIV Phar-ma community at Amsterdam Schiphol airport was signed between IATA and WFS, DNATA, Swissport, Air France – KLM – Martinair Cargo, De Jong Special Services, D.J. Middelkoop & Zn., Jan de Rijk Logistics, IJS Global/GEFCO, VCK Logistics, Yusen Logistics and Cyberfreight. The CEIV Pharma covers all air cargo processes, and provides a uniform global set of standards for safe and reliable pharmaceutical transport.

“Cold-chain transport is a growing business opportunity for the air cargo industry, but pharmaceutical sector goods are highly temperature-sensitive and a single mistake can destroy an entire batch of medicines,” said Rafael Schvartz-man, IATA’s European Regional Vice President. “It is there-fore essential to establish harmonized handling procedures, strong accountability and cooperation between all parties. I trust that the success of the Pharma Gateway Amsterdam will lead to a stronger, more competitive and improved air cargo service for this vital sector of the global economy.

WORLD CARGO SYMPOSIUM CONCLUDES WITH INITIATIVES ON INNOVATION AND SAFETY

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Berlin - The International Air Transport Association (IATA) called for continued transformation in the air cargo industry with a focus on raising the quality of its offering at the opening of the 10th annual World Cargo Symposium (WCS) in Berlin. The global air cargo sector continues to face a difficult business environment. The anemic growth experienced since 2010 continued in 2015 with a 1.9% expansion of volumes. And yields have contracted each year since 2012. IATA estimates that volume growth will increase to 3.0% in 2016. Under pressure from integrators, com-peting modes of transport (land and sea) and increased cargo capacity in the passenger fleet, yields are expect-ed to fall a further 5.5% in 2016.

“Air cargo continues to be a challenging environment for airlines to keep revenues ahead of costs. The busi-ness, however, generates enormous value. Over a third of goods traded internationally—measured by value—are delivered by air cargo. To do that profitably, the air cargo sector must bolster its key strengths of speed and flexibility with modern processes and improved quality. That means transformation,” said Tony Tyler, IATA’s Di-rector General and CEO. “Compared to other modes of shipping, air cargo is a premium service. Yet shippers give the industry a sat-isfaction rating of only 7 out of 10 on average. That is not good enough. The industry must raise the service quality of air cargo and provide a more personalized customer service,” said Tyler. Industry transformationTyler questioned why cargo has not undergone the same thorough transformation process that has rein-vigorated the passenger side of the business. “Develop-ments like e-tickets, bar-coded boarding passes, airport self-check-in kiosks and inflight Wi-Fi have transformed the passenger experience. Is it a coincidence that af-ter a decade of change, load factors are at record highs and airlines are finally rewarding their investors with adequate returns? We need similar breakthroughs on the cargo side of the business. There are lots of poten-tial disruptors out there—data-sharing platforms, new market entrants, or e-commerce. The challenge is to stay a step ahead in satisfying customer expectations,” said Tyler.

Paperless processes and customized services are critical to the sector’s future. The foundations are being built but challenges remain: The pace of adoption of the e-Air Waybill (e-AWB) must accelerate. As of the end of 2015, e-AWB penetration stood at 36%. To speed this up, the industry, through IATA, is engaging governments and airports to achieve targeted initiatives. There are still concerns over the quality of service for time- and temperature-controlled shipments, especial-ly pharmaceuticals. Patient safety is a key concern and compliance certification programs (such as the CEIV Pharma initiative) are a step in the right direction. But the breadth of adoption must evolve quickly for ship-pers to have full confidence in the system. In both of these examples, teamwork is the critical ele-ment. “The value of air cargo is so great because it is a team effort. Only if the different participants in the air cargo value chain pull together behind a common vision will the industry thrive in the coming decades. If the air cargo business can stay focused on the customer, de-livering a reliable, high-quality service at a competitive price, and build on the speed and flexibility for which air freight is renowned, then this business will not only survive but prosper,” Tyler said. Lithium-ion BatteriesTyler also noted that teamwork will be critical in resolv-ing issues around the shipping of lithium-ion batteries. In February 2016 the International Civil Aviation Orga-nization (ICAO) temporarily banned shipments of lithi-um-ion batteries as cargo on passenger flights, pending the development of a fire-resistant packaging standard. Some 400 million lithium-ion batteries are produced each week. Safety concerns arise from several areas: irregular manufacture, mislabeling and improper pack-ing, including non-compliance with dangerous goods regulations and the IATA Lithium Battery Shipping Guidelines.

“Safety is the top priority. Banning lithium-ion batteries from air freight does not solve the issue of counterfeit or non-declared goods. The issue lies with the lack of enforcement of the regulations by governments. So it is essential that authorities redouble their efforts to en-force the regulations and close the loopholes that pre-vent prosecutions of serial offenders,” said Tyler.

TEAM EFFORT NEEDED TO IMPROVE VALUE OF AIR CARGO

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http://www.cargobusinessnews.com/news/032116/news3.html

A little more than a decade ago, Hong Kong was the world’s busiest port. Last week, the local govern-ment reported that cargo flowing through Hong Kong dropped by 13.8 percent in 2015, capping a bleak year in which the city’s port declined to the world’s fifth-bus-iest, dropping behind one-time also-rans Shanghai and Shenzhen. It’s likely to get worse, according to a Bloomberg edito-rial by Adam Minter. Last year, Deutsche Bank predicted that the volume of cargo moving through Hong Kong will decline by as much as 50 percent over the next de-cade. That’s not just an economic blow, Minter says. For a city that has long valued its independence and distinc-tiveness from mainland China, it also threatens some-thing of an identity crisis. The port’s period of greatest prosperity was the latter half of the 20th century, following China’s economic opening to the outside world. Between 1972 and 2012, the volume of cargo moving through the port increased almost 18 times over, with the fastest growth between 1990 and 2000. Two types of business propelled that growth — and both are now under serious threat. The first is direct shipping to and from South China. For decades, the port of Hong Kong offered better berths,

technology and efficiency than Chinese ports across the border. Shippers preferred its predictable legal system to the mainland, where regulations and duty assessments could change on a whim. In the past few years, however, China has been building advanced port facilities of its own. During the second half of the 2000s, while the volume of cargo moving through Hong Kong grew by about 2 percent annually, it grew by 20 percent in Shenzhen and 57 per-cent in Guangzhou. Hong Kong’s share of South China’s cargo business has declined from more than 70 percent in 2001 to less than 40 percent today.

The second crucial business is so-called trans-shipment. By Chinese law, foreign vessels can’t carry cargo from one domestic port to another. But Hong Kong, con-sidered an international port, is exempted from this restriction. Foreign ships can move freight from there to any number of mainland ports. One result is that a large industry of warehouses and other infrastructure has grown up in Hong Kong to support trans-shipment, which represents 72 percent of the port’s business. The local government is now entertaining proposals to upgrade and expand the port. But it’s arguably too late. It can’t change the fact that China’s economy has ex-panded and modernized well past the stage where it needs a gateway.

HONG KONG PORT VOLUME CONTINUES TO FALL

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CARGO LOSSES TOP $55BN IN 2015http://www.lloydsloadinglist.com/freight-directory/news/Cargo-losses-top-55bn-in-2015/65965.htm

Worldwide cargo losses due to theft and natural disasters exceeded US$55bn in 2015, according to a report from BSI, which noted also that an increased number of terrorism in-cidents had contributed to major disruptions to internation-al shipping in Europe and Middle East.

BSI’s 2015 Global Supply Chain Intelligence Report identified US$22.6 billion worth of losses due to cargo theft in 2015 and US$33 billion impact from last year’s top five natural disasters alone, while also noting a number of cross-border issues that threatened supply chains across the world.

In addition to the damages caused by cargo theft, it high-lighted an increased number of terrorism incidents contrib-uted to billions of dollars in losses to global shipping com-panies; an influx of migrants in Europe that harmed supply chain integrity across the continent; economic downturns in Argentina, Brazil, and China; and issues of political transpar-ency that drove social unrest in Africa and Central America.

Extreme weather events, including many attributed to the El Nino phenomenon, caused supply chain disruptions and threatened business continuity in multiple regions. There were also several industries that were plagued by poor enforcement of labour regulations, allowing for significant rates of child or forced labour in Argentina and India, among other nations, BSI noted.

It said nearly $23 billion was lost due to cargo theft world-wide in 2015 from a variety of supply chain threats, predom-inantly driven by security concerns. South Africa has seen a 30 per cent increase in cargo truck hijackings over the last year, with thieves using high levels of violence and switch-ing from targeting only high value goods to also targeting lower value items. Daring vehicle shipment thefts have be-come increasingly commonplace in China, with a recent se-ries of in-transit vehicle thefts occurring along the busy G45 highway. More sophisticated attacks were observed in India throughout 2015, where criminal gangs masterminded new techniques to steal goods without breaking customs seals in order to avoid detection – a major risk for companies par-ticipating in international supply chain security programs.

In Europe, disruptions in trade caused by the ISIS terror-ist group clearly highlighted the link between terrorism and the supply chain. Border controls in France following the November attacks in Paris are estimated to have cost the Belgian shipping industry $3.5 million. Terrorist-linked smuggling rings were also identified to be colluding be-

tween Spain and the Middle East, the groups illegally trans-porting shipments of stolen electronics, drugs, weapons and other contraband.

Elsewhere, the Jordanian trucking industry suffered $754 million in lost revenue since conflict began in the Middle East in 2011.

In addition to theft, business continuity-related threats such as extreme weather events and political and social unrest, led to significant losses for individual companies and na-tional economies last year. 2015’s top five natural disasters caused a collective $33 billion of damage to businesses. In 2016, BSI has identified emerging health crises, such as the Zika virus, could also pose a significant threat to the global supply chain and may lead to work stoppages and protests similar to the supply chain disruptions seen in conjunction with the Ebola epidemic.

Labour unrest and factory strikes have also caused consid-erable financial damage across the world. Factory strikes in China increased by 58.3 per cent from the previous year due to pay disputes, as factory owners struggled to pay workers due to a slowing economy, leading to protests. The with-holding of wages was cited as a major cause in 75 per cent of protests and generated losses of up to $27 million in the footwear industry.

Labour unrest is likely to continue in China in 2016, regard-less of whether the economy improves, BSI said.

Jim Yarbrough, Global Intelligence Program Manager at BSI commented: “Companies are facing an increasingly wide range of challenges to their supply chain, from human rights issues to acts of violent theft and natural disasters. Such complexity creates extreme levels of risk for organi-zations, both directly affecting the bottom line but perhaps more seriously, hidden threats to the supply chain which, if ignored, could do serious harm to a company’s hard-earned reputation.”

BSI said the biggest threats to the global supply chain in 2016 include:

1. Global cargo theft cost estimated to grow by a further $1 billion in 2016: a) Increased concerns in China, Germany, India, Mexico, South Africa, and United States

2. Continued tensions in South China Sea predicted to lead to further protests and disruptions

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http://www.joc.com/maritime-news/trade-lanes/asia-eu-rope/asia-europe-spot-rates-rise-after-brushing-record-lows_20160328.html

Spot rates on the Asia-Europe trade recovered slightly after matching record lows and reports of zero freight began to circulate.

The rate from Shanghai to North Europe rose 20 percent from last week to $247 per 20-foot-equivalent unit, but the rate is still down 58 percent from where it stood at this time last year, according to the Shanghai Containerized Freight Index, which can be found on JOC.com’s Market Data Hub.

The gain puts some space between the spot rate and the record low of $205 per TEU, which was reached for the first time in June and again last week, as container lines battle overcapacity caused by weak demand and made worse by the delivery of mega-ships of up to 20,000 TEUs.

Illustrating the weakness of Asia-Europe demand in 2015, which has carried over into this year, westbound traffic on the trade shrank 2.2 percent in the fourth quarter. This re-sulted in an overall cargo decline of 3.5 percent for all of 2015, which was the steepest decline in 25 years, barring 2009, according to Drewry Shipping Consultants.

Carriers have worked to reduce capacity by canceling sail-ings, but void sailings only achieve their desired aims when utilization is high, which is impossible without supply and demand finding some kind of balance, Drewry said.

As a result of trying to strike this balance and vagaries in anticipating market demand, Drewry expects 2016 on the Asia-Europe trade to be marked by volatile spot market pricing.

ASIA-EUROPE SPOT RATES RISE AFTER BRUSHING RECORD LOWS

Continued

3. On-going conflict in Syria will continue to impact supply chains: a) Migrant crisis will continue to lead to port dis-ruptions; b) European Union/Schengen border controls pre-dicted to have far-reaching impact

4. ISIS is predicted to remain a significant threat to disrupt supply chains

5. Labour unrest in China is predicted to persist, as a slow-down in the Chinese economy continues and more jobs move to neighbouring countries

6. Weather disruptions e.g. La Nina phenomenon

7. Global health crises e.g. Zika and Ebola

The report is based on data from BSI’s Supply Chain Risk Exposure Evaluation Network (SCREEN), which provides continuous evaluation across 22 proprietary risk factors and 204 countries. BSI’s 2015 SCREEN data and analysis reveals a clear picture of the changing global threat landscape and how this varies by country, continent, and industry sector.

You can download a copy of BSI’s 2015 Global Supply Chain Intelligence Report here: http://bsi-supplychainsolutions.com/en-US/resources/spe-cial-reports/

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Support services include classification (HTS, ECCN, ITAR), rulings, help desk and training for international traders. Compliance services include anticorruption and boycott prevention and supply chain security programs such as the US’ Customs-Trade Partnership Against Terrorism (C-TPAT), Canada’s PIP and the EU’s Authorized Economic Operator (AEO). CWTS offers screening of parties to protect against improper sales to listed parties and license determination for

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GeneralInquiries@craneww.com

https://sourcingjournalonline.com/op-ed-heightened-sup-ply-chain-security-in-the-shadow-of-risk/

The recent tragic events that unfolded in Belgium are a heavy reminder that terrorism has a dramatic ripple effect on people, economies and the global supply chain. The Par-is attacks stifled business and trade in that capital city last November. Government leaders demanded more security in areas of great vulnerability.

Just this week, the bombings of two shipping and trans-portation hubs in Brussels are evidence that securing glob-al supply chains is still integral to safeguarding the lives of people around the world and maintaining the stability of the global economy.

Global supply chains are growing in complexity, yet remain vulnerable to myriad dangers damaging to both people and businesses. Supply chain disruptions, delays and loss of goods are costly global problems. The supply chain must be protected against those disruptions by establishing process-es like counter-terrorism evaluations, identifying the most critical elements of the supply-chain system, and bolstering resilience so the supply chain can recover quickly from any disruptions.

Better execution of cargo securitySupply chain assessments should begin with identifying any risk that will interrupt the flow of goods from the location where materials are originally sourced, to the product be-ing put on store shelves. A strong cargo security program should connect each and every critical link along the chain in a holistic way.

At a minimum, a strong cargo security program requires these critical elements:

Define risks — Companies need to work with their suppli-ers and providers to determine which risks are most likely to occur within their supply chain, rank them according to those most likely to occur given each unique scenario, and determine which risks carry the most disruption.

Implement risk mitigation “must-haves” — A strong cargo risk mitigation strategy starts with C-level support. Other must-haves including budget and organizational structures to support the program and financial incentives to encour-age compliance to policies.

Follow best practices — Cargo risk management strategies should address the best practices of people, processes and technology.

HEIGHTENED SUPPLY CHAIN SECURITY IN THE SHADOW OF RISK

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Develop and manage importer self-audits — At the most basic level, perform regular supplier audits, diagram the supply chain, and profile suppliers according to location, transportation modes, port of shipment, carriers and each supplier’s tier two and tier three supplier network.

Develop corrective action plans — Once risks are identi-fied and ranked, shippers should establish corrective action plans (CAPs) for deficient suppliers and other supply chain issues.

Provide risk mitigation training and remediation — This training, together with a formal, written security manual, should include overall awareness training and follow-up re-quirements, including in the areas of procedural, personnel, documents and records, and facility security.

Supply chain risk management strategies should also ad-dress people, processes and technology through some best practices, including:

Know your supply chain partners — This knowledge in-cludes your vendors’ vendors and customers’ customers. The shipper is responsible for ensuring that they are not do-ing business with undesirable entities, regardless of wheth-er compliance operations are outsourced.

Map out supply chain processes — Software visualization tools can help shippers diagram their supply chain; evaluate

risk levels of various supply chain partners and potential is-sues; and manage cargo flow risks. Identify dwell time and pinpoint maximum points of exposure.Use the Incoterms 2010 Rules — These rules define key responsibilities between the buyer and the seller, to de-termine where risk of loss or damage to goods begins and ends.

Borrow best practices from established security entities — There are several organizations that provide suggested security standards and a recognized framework for mitigat-ing risk, including the International Standard Organization’s ISO 28000: 2007 standards, the Business Alliance for Secure Commerce (BASC), and the Transported Asset Protection Association (TAPA).

Know what your cargo insurance really covers — Closely review your insurance policy for items covered and more importantly, items that are omitted.

By implementing the best practices and basics recommen-dations, businesses and their partners will have more trans-parency into their overall risk posture and better control in the case of a disruption.

With a better understanding of their vulnerabilities and pro-grams to manage and correct them, companies will be in a more secure position.

Providing high-touch, high-service, high-value supply chain solutions in 113 offices in 25 countries.

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http://www.supplychaindigital.com/logistics/4230/10-rea-sons-to-clean-up-your-supply-chain

It’s growing increasingly important for businesses of all sizes to clean up their supply chains, go green and eliminate any questionable practices and/or chemicals used within it. For larger companies this might be a huge task and for others it might be relatively simple, however, it’s important that you make those first steps to take control of your supply chain. Here are some reasons why.

Supply chains count for the bulk of corporate emissions

If your business is looking to reduce emissions, go green or save money, look to your supply chain. Emissions from lorries and other transport can account for a huge portion of a com-pany’s carbon footprint. Rather than looking within your offic-es for ways to start reducing emissions, focus on your supply chains. Begin by measuring and tracking these emissions then work on a strategy to reduce them.

Your competitors are doing it

You run the risk of falling behind your competitors if you don’t start to engage your supply chain. Many businesses, especial-ly the larger ones, are dedicating time and resources to low-ering emissions, removing toxic chemicals and reducing the impact of their supply chains on the local environments.

Regulation is on its way

On top of the environmental regulations already in place in terms of waste and pollution, many countries are also imple-menting emissions regulations too. If you can reduce your supply chain’s impact on the environment, you’ll have less work to do should regulations come into place that affect your business.

There are measurable effects

Cleaning up your supply chain is about more than just sav-ing the planet and improving the lives of the people working within it – although these are huge benefits. Once you begin to measure your emissions, it’s easy to see how they can be improved and then to watch them come down. You can also see the costs involved with all aspects of your supply chain, which can give you an idea of where reducing emissions can save your business money.

It saves cash

Disclosing your supply chain’s effect on the environment is a real incentive to make changes. Not only do you reduce your risk from fines and regulation breaches but cutting emissions can save money too.

Your supply chain engagement is about to go public

With more focus on the environment, there’s becoming a real need for businesses to start engaging with their supply chains to improve the impact on the environment. The CDP, which recently released a report on supply chain engagement, will soon be ranking businesses based on their management of carbon and climate change across their supply chains.

You’ll contribute to saving the planet

As well as all the benefits to your business, reducing emis-sions, improving chemical usage and increasing welfare with-in your supply chains can have bigger global benefits to both the planet and people.

Your customers care

While customers might not be clued up on the intricacies of your supply chain, they are aware of environmental issues. Whether you are a B2C or B2B business, your customers care about your green credentials. If you fall behind your compet-itors when it comes to these issues, you may find you lose customers too.

Increased transparency is good for business

Even for businesses who find some failings, transparency can actually be good for business. For example, Nestle recently uncovered forced labour within its seafood supply chain. This act of self-policing shows Nestle customers and stakeholders that it is dedicated to supply chain engagement and human rights. It also sends a strong message to competitors that use similar supply chains.

It’s an education opportunity

Not only is cleaning up your supply chain an education op-portunity for any employees working on the project but it’s a chance to educate customers, the public and other business-es about the environment, carbon emissions, human rights and cost-saving.

There are plenty of reasons to clean up your supply chain but the first steps are identifying how this can be done and where the weak points in the chain lie.

10 REASONS TO CLEAN UP YOUR SUPPLY CHAIN

http://www.lloydsloadinglist.com/freight-directory/news/Brussels-clears-cargo-backlogs-as-freighter-schedule-norma-lises/65982.htm

Passenger flights remain suspended at Brussels Airport fol-lowing last Tuesday’s deadly terrorist attack, but freighter ser-vices have returned to close to a full schedule, allowing cargo backlogs to be cleared.

Cargo sources at the airport told Lloyd’s Loading List this morning that cargo operations went back to normal faster than expected after the explosions within the airport’s pas-senger terminal on Tuesday morning halted all flight and car-go operations.

Brussels Airport head of cargo sales and marketing Steven Polmans said: “Cargo operations were possible again as of Thursday afternoon last week, and that evening we already handled our first flights. Most carriers returned to their nor-mal schedule in the past days, so for full cargo we are pretty much back to normal by now.”

In addition to the general cargo airlines, all-cargo flights op-erated by DHL at the airport also restarted last week and are back at close to normal operations.

But with no passenger flights for the moment, the absence of cargo bellyhold capacity was obviously still a major factor, and many customers were using capacity at other European airports to make up for the shortfall at Brussels.

“Hopefully this (passenger flights) will start again later this week if we can re-open,” said Polmans. “We do see more trucking of cargo to other airports in our area, so backlogs are not really an issue. But there is no doubt that volumes are showing a dip and this will continue in the next weeks to come.”

In an update on Sunday, the airport said: “In the past few days, Brussels Airport has made an extensive analysis of the terminal infrastructure and of the various possible scenarios for a partial recommencement of its activities. When this par-tial restart will take place is not yet decided. That depends on the various processes that have to be restarted. The simple fact is that a restart in the short term is not possible in the devastated infrastructure.”

Brussels Airport began erecting temporary constructions last Thursday that could be used as interim passenger terminal facilities. These include the additional security measures that are being implemented at all Belgian airports on the orders of the government. Construction and fire safety inspections of the temporary constructions will take place today, including a major test whereby 800 airport staff will test the temporary arrangement and infrastructure for the check-in procedure. This test will be developed in consultation with the various airport partners, the Federal Police, Defence, the Belgian Civil Aviation Authority (BCAA).

“The government authorities concerned must give their ap-proval to the security system as well as to the partial recom-mencement of the airport activities,” the airport said.

BRUSSELS CLEARS CARGO BACKLOGS AS FREIGHTER SCHEDULE NORMALISES

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