Global Shippers’ Forum Annual General Meeting

(Colombo, Sri Lanka – 29 July 2016)

Round Table Discussion

Boubacar Djibo,

Director Air Transport Bureau

ICAO

1

Follow up the Meeting Between the GSF SG and the ICAO SG in Berlin, March, 2016

World International Cargo Shipment

The two Secretary General addressed the safe transportation of lithium battery and the concerns of air cargo shippers in their discussion on the occasion of the 10th World Cargo Symposium.

World International Cargo Shipment

Volume of world international cargo shipment

Value of world international cargo shipment

Aviation

Aviation

Surface modes

Surface modes

3Source: Air Transport Action Group (ATAG), 2016

One third of the value of world trade

is shipped by air

Value chain of air transport

STATES(Regulatory framework)

Airlines Airports

ANSPs

Travel agents & GDS

Lessors

Aircraftmanufacturers

Ground Handling

Fuel suppliers

Seeks services from

MROs

Freight Forwarders

Growth of air transport

Scheduled commercial trafficTotal (international and domestic) services

5Source: ICAO Annual Report of the Council

198 billion FTK

+1.7%growth rate vs. 2014

6.6 trillion RPK

+7.1%growth rate vs. 2014

Domestic International

Source: ICAO Annual Report of the Council

2005

Domestic 17%International 83%

2015

Domestic 14%International 86%

Scheduled commercial traffic measured in Freight Tonnes-Kilometres6

EUR31%

AFR2%

MID8%

APAC38%

NA18%

LAC3%

EUR4%

AFR0%

MID1%

APAC21%NA

71%

LAC3%

EUR5%

AFR0%

MID0%

APAC33%

NA59%

LAC3%

EUR24%

AFR2%

MID16%

APAC41%

NA14%

LAC3%

Freight traffic distribution

Long-term Air Traffic Forecasts: “GATO”Scheduled Freight Traffic

7Source: Cir 333, Global Air Transport Outlook to 2030 - GATO

Top belly-cargo international flows : 2030 (FTK share)

Source: ICAO Global Air Transport Outlook to 2030 – Cir 333

8

Air freight growth vs. global export orders

Challenges of Air Cargo Industry• World trade has been weak and the global economy has stagnated.• China’s rebalancing impacts commodity exporters and the US economy is recovering

slowly.• A chronic over-capacity has been observed industrywide and the load factor for cargo

carriers continued a steady drop over the last several years.

Air Freight and World Trade

Air Freight Slowdown Continues

Intermodal competition

Competition from Other Modes of Transportation

• Air cargo and liner shipping carriers transport similar commodities but the price gap between sea freight and air freight causes shippers to switch from air to ocean

• Railway transportation is gaining more market share. Rail freight makes a 17-day rail journey from China to Europe, at a lower fare than air freight

Aggregated Tonnage of Postal Shipments (in

millions)total letter-post parcel-

post

EMS

2013 458 163 168 126

2014 567 214 189 164

2015 656 218 220 218

2015/14 15.8% 2.2% 16.6% 32.8%

2014/13 23.8% 31.0% 12.1% 30.3%

Source: UPU Data on Postal Shipments

E-Commerce stimulates air cargo

ICAO is cooperating with UPU and UNCTAD to share big data and research reports on e-commerce

• 2/3 of international postal transportation is by air

• Global B2C e-commerce sales hit $1.5 trillion in 2015

• Double-digit annual growth in the e-commerce market

• High frequencies of E-commerce transactions may improve the load factors of air cargo carriers

The Future of Air Cargo: Big Online Retailers? Drones ?

Amazon:E-commerce giant Amazon has signed up to lease 40 freighters, 20 from Atlas Air Worldwide Holdings and another 20 from ATSG. Amazon also registered a company in the U.S. as a non-vessel operating common carrier (NVOCC), which turned Amazon into a freight forwarder.

Alibaba:Alibaba’s logistics arm, Cainiao Logistics, helped Alibaba rake in a staggering US$14.3 billion in a 24-hour period on 2015 “Singles Day”!

• Amazon announced its drone delivery program “Amazon Prime Air” since December 2013. Amazon has developed drones weighs less than 55 pounds and can carry up to a 5-pound payload.

• UAV manufacturer Matternet, announced its partnership with Swiss WorldCargoand Swiss Post on a project to test its drone aircraft as an automated cargo delivery system for small express packages.

• China’s S.F. Express has revealed it already has a fleet of aircraft flying 500 parcels a day to remote areas, and it is now looking to double the capacity.

• Chinese online retailer JD.com has also tested drone deliveries to the remote countryside.

ICAO’s Role in Global Air Cargo Transport

• Economic Development

• Security and Facilitation

• Dangerous Goods

• Environment

• International Cooperation

Economic Development

CHICAGO CONVENTION

PreambleTHEREFORE, the undersignedgovernments having agreed on certainprinciples and arrangements in orderthat international civil aviation may bedeveloped in a safe and orderly mannerand that international air transportservices may be established on the basisof equality of opportunity and operatedsoundly and economically;

• Air Transport is an essential component of our global society, a powerful driver of economic, social and culture development and the safest and most efficient mode of mass transportation ever created.

ICAO Council President Dr. Olumuyiwa Benard Aliu, 2014

Promoting the Value of Air Cargo to the Global Economy

The pages addressing the impact of air cargo services on economic development in the ICAO-WCO Joint Brochure.

ICAO is promoting the value of air cargo to its Member States and the industry through its website, publications and events, and therefore aptly reflects the core vision of the 2030 Agenda and the SDGs as the means to fulfilling its objectives.

Economic Development: Promoting the Value of Air Cargo Transport

ICAO webpage on Air Cargo Economic Policyhttp://www.icao.int/Security/aircargo/Pages/Liberalizing-Market-Access-for-Air-Cargo-Services.aspx

ICAO held the First ICAO Air Cargo Development Forum, in Zhengzhou, 2-5, September, 2014

Market Monitor: Air Transport Monitor

Based on the data provided by our Member States, ICAO produces an Air Transport Monthly and Yearly Monitor that provides a snapshot and analysis of economic and aviation indicators.

Economic Development: Data Analysis

Air Transport Monitor

Data Sharing with Partners – OECD/UPU/UNCTAD

UUII Portal Site is a data-sharing platform between ICAO, UPU,UNCTAD and ITF-OECD, where the four organizations share the research reports, as well as the statistics on air cargo transport, maritime shipping and postal services.

This platform also provides a unique forum to undertake the research on e-commerce.

Economic Development: Data Analysis

• ATConf/5Air cargo and, in particular, all cargo operations should be considered for accelerated liberalization.

• ATConf/6There was broad support for ICAO to play a leadership role in facilitating further liberalization, and some support for ICAO to develop a multilateral agreement specifically focused on air cargo.

• Guidance MaterialICAO has developed guidance to facilitate air cargo liberalization, such as the model clauses for inclusion in air services agreements (in the form of an annex on air cargo). The model clauses, which were endorsed by ATConf/5, have been included in the ICAO Template Air Services Agreement (TASA) for optional use by States.

• The Working Group (WG) of the Air Transport Regulation Panel (ATRP) The WG is tasked to develop an international agreement for the liberalization of market access and air carrier ownership and control. The expected outcome will cover an article on the liberalization of air cargo transport.

Air Cargo Liberalization

Economic Development: Cargo Liberalization

FREEDOMS OF THE AIR

YD = Yamoussoukro DecisionEU = European Union

ICANICAO Air Services Negotiation Event

Market Access

Traffic liberalization (Pax and cargo)

Multilaterals

Bilaterals

Regional frameworkRegional approaches

(e.g. EU, YD)

19

Economic Development: Cargo Liberalization

Air Cargo Liberalization in Africa

• Yamoussoukro Decision

ICAO encourages all the Parties to implement the Yamoussoukro Decision in order to realize the full benefits of the Decision.

• Meeting on Air Cargo Development in Africa

ICAO held the First Meeting on Air Cargo Development in Africa in Lomé, Togo in 2014. The Meeting adopted the “Declaration on the Development of Air Cargo in Africa: Key Milestones” and the “The Action Plan describing the follow-up work approved by the meeting”

• The State Air Transport Action Plan System (SATAPS)

SATAPS is a tool to support States in the follow-up and implementation of strategic decisions formalized through:

a) the ICAO Declaration on the Development of Air Cargo in Africa (7 August 2014) and

b) the ICAO Declaration on the Sustainable Development of Air Transport in Africa (27 March 2015).

Economic Development: Cargo Liberalization

05/08/2016 Air Cargo Development in Africa 21

Declaration on Air Cargo Development in Africa: Key Milestones

Economic Development: Cargo Liberalization

05/08/2016 Air Cargo Development in Africa 22

Action Plan describing the follow-up work approved by the meeting

Economic Development: Cargo Liberalization

ICAO Air Services Negotiation Event (ICAN2016)5 - 9 December 2016, The Bahamas

Venue YearDubai, UAE

2008Istanbul, Turkey

2009Kingston, Jamaica

2010Mumbai, India

2011

Jeddah, Saudi Arabia2012

Durban, South Africa2013

Bali, Indonesia2014

Antalya, Turkey2015

Number of participating

States27 52 39 65 62 73 78 95

Number of bilateral meetings

held100 200 200 340 350 485 550 588

Number of agreements and arrangements

signed

20 60 60 120 130 458 500 450+

• Provide States with a central meeting place to conduct multiple bilateral (regional or plurilateral) air services negotiations or consultations;

• Provide a forum for the participants to learn about current trends, discuss topical issues and exchange experiences, as well as excellent networking opportunities;

• Negotiations between States/regional groups are private in nature, not open to third parties

Economic Development: Cargo Liberalization

Infrastructure Investment

• Public-Private Partnership (PPP)

The case studies on PPP have been prepared by the ICAO Secretariat based on material available.

http://www.icao.int/sustainability/Pages/im-ppp.aspx

• Partnership with ITF-OECD

ICAO cooperates with ITF-OECD on joint research and is invited to join the Working Group on Private Investment in Infrastructure of ITF-OECD.

Economic Development: Infrastructure

ICAO World Aviation Forum (IWAF)IWAF is designed to identify needs, facilitate the funding and financing required to accelerate the implementation of international civil aviation global standards and policies in support of the No Country Left Behind (NCLB) initiative. The Second IWAF will be held on 26 September 2016 in Montreal.

Airports Infrastructure• Airport Economics Manual (Doc 9562)In response to requests from States for guidance aimed at improving the efficiency and cost-effectiveness of their airport operations, ICAO has developed the Airport Economics Manual(Doc 9562).

• Analysis Report: State of Airport EconomicsICAO, in collaboration with the Airports Council International (ACI), has developed the analysis report entitled “State of Airport Economics”.

• Joint Conference with ACIThe ICAO-ACI Conference on Investing in Airports -Economic Oversight and Regulation, 2 - 4 December 2015, Delhi, India

Economic Development: Infrastructure

ICAO Policies on User Charges

• Tariffs for Airports and Air Navigation Services (Doc 7100)

According to the Chicago Convention, States shall publish all their airport and air navigation services charges, and also communicate them to ICAO. This information is collected and published by ICAO in the Tariffs for Airports and Air Navigation Services (Doc 7100).

• Policies on Charges for Airports and Air Navigation Services (Doc 9082)

Policy guidance in the area of airport and air navigation services charges is provided in ICAO's Policies on Charges for Airports and Air Navigation Services (Doc 9082).

Economic Development: Infrastructure

Smart Sky Aviation Charge Support System

05/08/2016 27

The system has already covered more than 60% traffic volume

From 2016, ICAO started working with States to develop a Smart Sky aviation charge platform to update the Doc7100 (Tariffs for Airports and Navigation Service)

Key Functions:

• Timely update of airports charging policies

• Embeddable calculating engine for price estimation

• Appointed display section for airports’ charging discount and commercial activities

• Price and cost comparison between airports

• Accurate price estimation for long-term fight plans

• Automatic billing system

Time line:

Beta launch

Soft launch

Official launch

Economic Development: Infrastructure

E-freight

• Montreal Convention 1999

Article 3 and Article 4 of the Montreal Convention 1999 enables electronic documents

• Amendments to Annex 9

a. Single Window

b. Advance Cargo Information

c. Air Cargo Community Systems

• Cooperation with the Global Partnership for Sustainable Transport (GPST)

a. Attended the High Level Political Forum (HLPF) 2016 in UN Headquarters

b. Invited to joined the Experts Group on the GPST Global Transit Document (GTrD)

Economic Development: E-freight

Air Cargo Security• The secured supply chain regime is regulated by

Annex 17

• ICAO has also developed guidance material on air cargo security (Aviation Security Manual,

Doc. 8973/9)

• Development of Joint AEO/Regulated Agency (RA) Pilot Programme

• Joint Working Group on Advance Cargo Information (JWGACI)

• Working Group on Air Cargo Security (WGACS)

• Global Survey on Air Cargo Security

Cargo Security and Facilitation: Air Cargo Security

www.icao.int/Security/aircargo/Pages/Air-Cargo-and-Mail-Security-and-

Facilitation.aspx

Moving Air Cargo Globally

ICAO-WCO Joint

Publication on Air Cargo

Security and Facilitation

30

Available for download in six languages: Arabic, Chinese, English, French, Russian, Spanish (First Edition)

Cargo Security and Facilitation: Cooperation with WCO

ICAO-WCO Joint Conference on Enhancing Air Cargo Security 2012 in Singapore

2014 in Bahrain2016 in Malaysia

Topics include:• The path to effective implementation • Joint initiatives to build capacity• Secure supply chain and screening• Cyber Security and Chemical, Biological,

Radiological and Nuclear (CBRN)• Border management• Using dogs for screening and high risk screening• ACI & PLACI• Regulated Agents & Authorized Economic Operators• Inspections and quality control• Insider threats• AVSECPaedia, Point of Contact (POC) network & eCSDs

2012 First ICAO-WCO Joint Conference on Enhancing Air Cargo Security in Singapore

Cargo Security and Facilitation: Cooperation with WCO

Cargo Security and Facilitation: Security Technology

ICAO Aviation Security Panel Working Group on Innovation in Aviation Security (WGIAS)

Established at the Aviation Security Panel at its Twentieth Meeting to develop advice to the Panel on security screening equipment

Development of the AVSECPaedia platform

Symposium on Innovation in Aviation Security (SIAS)

Absolved by Working Group on Innovation in Aviation Security (WGIAS)

AVSECPaediaICAO Symposium on Innovation in Aviation Security in 2014

Air Cargo Safety — Dangerous Goods

• Threats to air cargo safety– What we transport

– How much we transport

– Risks posed

• Lithium batteries– Fire involving lithium batteries may

exceed capability of cargo fire protection systems

– Prohibition on passenger aircraft

– Development of performance-based package standard by SAE

– Need for additional operational controls

ICAO Carbon Emissions Calculator

• ICAO has developed a methodology to

calculate the carbon dioxide emissions

from air travel

• The ICAO Carbon Emissions Calculator

allows passengers to estimate the

emissions attributed to their air travel

• In addition, ICAO has developed a

methodology to estimate the emissions

associated with the shipment of cargo

by air

• http://www.icao.int/cc

Environment

• The methodology is presented in three parts in

order to use more precise data on the aircraft

type and routing

Cargo Carbon Emission Calculator Methodology

ICAO, WCO and TIACA Solidify Cooperation on Air Cargo Supply Chain Objectives

35

International Cooperation

ICAO and TIACA

Declaration of Intent

Strengthen cooperation on technical matters (April 2013)

Closer work in the field of

- air cargo and mail security and facilitation;

- Accelerating the evolution from paper-based to electronic processes;

- environmental stewardship;

- the liberalization of market access; for air cargo services; and

- air cargo safety

36

International Cooperation

ICAO and WCO

Memorandum of

Understanding

Join forces to Strengthen Air

Cargo Security (June 2011)

Increased cooperation to protect

air cargo from acts of terrorism or

other criminal activity and for

speeding up the movement of

goods by air worldwide

Foundation for future Joint

Communiques and Publications.

37

International Cooperation

Involvement in the “One Belt One Road” Initiatives

- ICAO believes that the “One Belt One Road” initiatives could also support ICAO’s “No Country Left Behind” goals. ICAO is supportive of these initiatives and will render assistance where required.

- ICAO attended the “Forum for Heads of Customs Administration along the One Belt One Road” in 2015 and introduced its policies onconnectivity and trade facilitation. ICAO joined the “Initiative by the Forum for Heads of Customs Administrations along the Belt and Road” which urges enhanced cooperation and collaboration.

- ICAO attended the “2015 China Civil Aviation Development Forum” and highlighted the important role of civil aviation in the development along the “One Belt One Road”.

- ICAO attended “The Fourth Global Friend Airports CEO Forum” in 2015 and expressed its supports to the “One Belt One Road” Initiatives.

2015 Forum for Heads of Customs Administration 2015 China Civil Aviation Development Forum Fourth Global Friend Airports CEO Forum

International Cooperation

ICAO Reference Documents

www.icao.int/Meetings/AirCargoDevelopmentForum-2014/Pages/Refer

ence-Documents.aspx

Reference

Documents

ICAO

39

• Convention on the international civil aviation signed at Chicago on 7 December 1944 (Doc 7300), multilingual

•

Convention for the Unification of Certain Rules for International Carriage by Airdone at Montreal on 28 May 1999 (Doc 9740), multilingual

•

WPs of the Sixth Air Transport Conference ATConf/6(Notably WP/14, 34, 36 and 96) multilingual

•

38th ICAO Assembly (A38)WPs of the Economic Commission (EC)

(Notably WP/56) multilingual

•Assembly Resolutions in Force: A38-14 - multilingual

www.icao.int/Meetings/AirCargoDevelopmentForu

m-2014/Pages/Refe

rence-Documents.aspx

Reference

Documents

International

WCO

40

• World Customs Organization

• SAFE

Framework of Standards to secure and facilitate global trade, June 2012

• Compendium of Authorized Economic Operator Programmes, 2014

• WCO Compendium, Volume 1

How to Build a Single Window Environment: The Executive Guide

• WCO Compendium, Volume 2

How to Build a Single Window Environment: The Professional Practice Guide

• Recommendation of the Customs Co-operation Council

on the Dematerialization of Supporting Documents, June 2012

• WCO-UPU Postal Customs Guide, June 2014

• Guidelines for the Immediate Release of Consignments by Customs

ICAO Reference Documents

www.icao.int/Meetings/AirCargoDevelopmentForum-2014/Pages/Refer

ence-Documents.aspx

Reference Documents

InternationalICAO/WCO ICAO/TIACA

Regional

41

• ICAO/World Customs Organization

• Moving Air Cargo Globally September 2013

Arabe | Chinois | Anglais | Français | Russe | Espagnol

• Joint Communiqué on Enhancing Air Cargo Security and Facilitation –

Collaborative Solutions to Future Challenges

Manama, Bahrain, 17 April 2014Arabe | Chinois | Anglais | Français | Russe | Espagnol

• Joint Communiqué on Enhancing Air Cargo Security and Facilitation –

Synergy through Cooperation, Singapore, 6 July 2012Arabe | Chinois | Anglais | Français | Russe | Espagnol

• ICAO/TIACA Agreement, April 2013: The ICAO-TIACA agreement calls for

both organizations to work more closely on air cargo safety and security

matters, supporting future cooperation across a wide range of shared

priorities, including greater liberalization of air cargo services. Anglais |

Français

ICAO Reference Documents

谢谢, Xie Xie

Thank You

Shukran ,شكرا

Merci

Спасибо, Spasiba

Gracias42