After U.S. and Japanese officials agreed in mid-February to add new landing and take-off slots at Tokyo Haneda Airport that will allow daytime flights to the United States for the first time, passenger carriers were practically licking their lips. Because of this agreement, Japanese and U.S. airlines will soon get five new slots each at the chronically congested airport. Being much closer to downtown Tokyo than Narita Airport, Haneda is favored by travelers but has only limited international routes, so the extra trans-Pacific capacity will be much appreciated.
\nMeanwhile, Tim Strauss, vice president of cargo for Hawaiian Airlines, which already serves Haneda (as well as Osaka and Sapporo), is much more interested in starting flights to Narita in July. The new slots at Haneda will offer more flexibility, he said, but they are of less relevance for cargo. \u201cFrom the airline side it\u2019s good news, for cargo it\u2019s indifferent,\u201d Strauss added. He likens the situation to New York. \u201cIf you\u2019re in JFK, you\u2019re in the industry; if you\u2019re in LaGuardia, you\u2019re not.\u201d
\nDespite the opening of Haneda to international (mostly intra-Asian) flights a few years back, Narita has remained Tokyo\u2019s gateway for international cargo, as forwarders have retained their warehouses there. With the exception of Nippon Express, no forwarder has facilities at Haneda, noted Steve Sato, regional manager, cargo sales, North Pacific at United Airlines.
\nThe daytime departure slots at Haneda may be popular, Sato said, but operating at two airports is a costly proposition for airlines. Moreover, handling charges at Haneda are exorbitant, he added, suggesting that the airport authority is not too anxious to boost cargo throughput.
\nIf Haneda is the wrong place for airfrieght in Japan, cargo executives may be forgiven if they are beginning to feel that Japan is the wrong country for them as well. Sato said he is spending more and more time outside the country. \u201cThe Japan market is shrinking,\u201d he said. \u201cA company that focuses on Japan is in trouble. That\u2019s why Japanese forwarders look to other markets.\u201d
\nTough times
\nTo understand the need for Japanese carriers and forwarders to look beyond their home islands, it\u2019s important to note the current sluggish state of Japan\u2019s cross-border trade. According to Nittsu Research Institute and Consulting, a subsidiary of logistics giant Nippon Express, Japan\u2019s international air cargo volume slipped 4.5 percent in fiscal 2015 (ended March 31). For fiscal 2016 it predicts just 1.3 percent growth.
\nThis lackluster performance is reflected on the balance sheets of carriers. All Nippon Airways (ANA) Cargo registered a 3.1 percent decline in revenue to US$207 million in the quarter that ended Dec. 31, 2015, with international revenue falling 5.8 percent. Japan Airlines (JAL) Cargo reported just 0.7 percent growth in freight tonnage in the April-December 2015 period, while mail dropped 2.9 percentage points. JAL\u2019s revenue from international freight traffic was $372.7 million during that time, down 4.1 percent.
\nSato said that the average yield out of Japan is the lowest in the Asia-Pacific region. Because of this, airlines are going after higher-yielding traffic from different stations to feed their international departures. In some cases, this has led to creative thinking about reinventing the traditional hub-and-spoke air network \u2013 including moving the hub to a place that better suits global trade than the local population.
\nFor more on Japan’s e-commerce prospects, click here
\nSource: aircargoworld<\/p>\n","protected":false},"excerpt":{"rendered":"
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