Stimulus win-win
If you think last year's $789 billion stimulus bill wasted a ton of money without creating jobs, you might want to hear how one small air freight business took advantage of new resources to boost its workforce in preparation for an expected rise in transport demand.
Consolidators International, a Los Angeles freight forwarder and consolidator, has hired 12 people through a Los Angeles County program that helps people get off welfare by subsidizing their first year of employment. Southern California's unemployment is more than 12 percent and the rate is probably higher when considering those who have given up looking for jobs. The new workers had been without jobs for more than a year, despite searching through the Internet and unemployment offices.
The non-profit Transportation Foundation of Los Angeles, which specializes in finding internships for qualified students, works on behalf of the county to match welfare candidates with employers willing to train and put them to work. Los Angeles County is using some of the money it obtained through the American Recovery and Reinvestment Act to expand the program.
The organization identifies two candidates for each job description and pre-qualifies them. Once approved by the company, the county pays their wages ' $10 per hour, 40 hours per week ' for six months. The workers then transfer over to the company's payroll, but their wages are reimbursed once the employer submits an invoice. That's not all, the county also covers commuting expenses, health benefits and workman's compensation for the year.
The hope, explained Fetu-Ao Alailima, the Transitional Subsidized Employment Program area manager, is that the business is satisfied and retains the workers. But even if workers don't continue, they are ahead of the game because their manager provides a letter of recommendation that can help them find another job.
The employer has the discretion to pay above the $10 rate. Some companies have been so satisfied that they've brought on workers as full-time employees before the year is up, enabling the TFLA to recruit another person for the temporary spot.
'Once you've recognized talent and it's a good fit for your company, then you don't want to let them go,' Alailima said.
Consolidators International is growing despite the weak economy and required additional staff to keep up with demand. CI, which has expanded in recent years into the ocean container wholesale market specializing in serving the South Pacific islands, experienced a 20 percent revenue increase in January over 2009. It was the third time in 17 years the company has recorded a profit in the traditionally slow month.
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Chief Executive Julian Keeling said he is so pleased with the new employees' abilities and dedication, he has enrolled them at company expense in a series of training programs sponsored by the International Air Transport Association, as well has having them qualified to screen cargo for security threats.
CI's warehouse is recognized by the Transportation Security Administration as a Certified Cargo Screening Facility that can run security checks on customer cargo so that it doesn't have to be checked at the airport.
'When August arrives and 100 percent screening becomes mandatory, knowing how most forwarders have been sitting on their hands, we will be beautifully positioned to take advantage of the commercial opportunities of being an off-airport screening facility,' Keeling said.
The company couldn't have afforded to expand during the economic downturn without aid, he said.
The Transportation Foundation is also encouraging Los Angeles World Airport, which operates three airports in the region, to participate in the employment subsidy program, Alailima said.
Emirates flies through Dubai crisis
Abu Dhabi gave Dubai $15 billion late last year to help it through its debt crisis. What did Dubai have to give up in exchange? Some speculate that equity in Emirates Airline was offered.
Not so, says Chairman Sheik Ahmed bin Saeed Al Maktoum in an interview with Dow Jones Newswire.
Emirates Group is one of the world's fastest growing airlines (and an aviation IT unit), with $406 million net profit in 2008. It has 145 widebody aircraft, including seven freighters and eight A-380 super jumbo-jets. It has another 146 aircraft worth more than $50 billion on order from Boeing and Airbus. Sheik Ahmed, who also heads a government fiscal committee, said the airline plans to take delivery of seven more A-380s by March 2011.
The credit crisis hasn't hindered the airline from signing aircraft orders, he said, but didn't rule out selling shares to the public to raise money for aircraft.
JFK runway work to impact air traffic
Air cargo shippers should expect delays flying in and out of John F. Kennedy International Airport in New York for the next three months.
The Port Authority of New York and New Jersey is reconstructing the main runway at JFK. One-third of the airport's traffic and half its departures are being diverted to three smaller runways. That means longer waits to take off and land, with delays rippling to other cities with routes to New York. Several airlines have cut back their schedules during the construction period, which means fewer available flights on which to book cargo.
The port authority said that once completed the runway will reduce delays by an estimated 10,500 hours per year. The runway is being widened by 50 feet to accommodate new taxiways ' and paved with concrete that has a 40-year lifespan instead of shorter-lasting asphalt.
DHL invests in Hong Kong facility
DHL said it will invest HK$360 million ($46 million) in a multiuser facility for DHL Supply Chain Hong Kong.
DHL Supply Chain will occupy at least 25 percent of the 'Interlink' facility being developed by the Goodman Group. The facility, to be completed in January 2012, is located in Tsing Yi, situated between the container ports and Hong Kong International Airport.
DHL said it sees growing demand, particularly among consumer, fashion and high-tech customers.
The facility will function as one of the primary Asia-Pacific distribution centers for DHL Supply Chain's established business in the fashion and apparel industry, supplying European garments across the Asian market from Beijing to Sydney to Singapore. The company also said it will be used as a service parts logistics hub, providing urgent response spare parts delivery to DHL customers in Hong Kong and the Asia Pacific region.
