United
Cargo President Jan Krems looks to the past
and future as 2017 takes wing, declaring:
“[I’m]
pleased to report that 2016 was a very successful
year for United Cargo, and what is also noteworthy
is a global industry trend that strengthened
as 2016 progressed.
“For
the first time in several years, there were
signs of widespread growth in the global freight
market.
“The
demand boosts experienced in the past few
months reminded those of us who’ve been
around awhile of the traditional ‘holiday
peak seasons’ of an earlier era.”
Reading
The Tea Leaves
“It was difficult to spot this positive
direction early on in 2016, especially because
we were being measured against 2015 Q1 numbers
elevated by the U.S. West Coast port strike.
“But
business got better and better as the year
wore on, with United Cargo volumes up 18.1
percent year-over-year in October and 15.5
percent in November.
“Through
November we’ve carried 6.5 percent more
volume than the first 11 months of 2015. It’s
gratifying that, in this period of expansion,
United Cargo’s share of the business
is increasing along with our overall volumes.
“We’re
thankful that our customers appreciate the
effort we put into being a reliable and valuable
business partner.”
UA
Cargo 2017 Plan
“United Cargo has been executing a consistent
strategy for the past few years. Briefly,
our plan was to gain customer’s confidence
and preference by being highly reliable and
easy to do business with, then develop and
expand the added-value segment of our business.
“Reliability
is essential, of course, which is why I never
speak to customers or our team without referring
to the concept of ‘quality.’ “Quality
of service is the most important thing we
provide, and it’s the foundational basis
of durable customer loyalty.
“Moving
quality to a higher level is the key to our
current and future success.”
Never
Forgets
“Being the kind of people, and the type
of company, that customers want to do business
with is the other key element of our long-term
strategy.
“Customers
want a partner that’s available when
needed and quick, agile, and creative enough
to respond to their changing needs.
“We never
forget how important and valuable our customers
are, and our team is focused on forging relationships
that promote long-term benefits for us and
our partners,” Jan Krems said.
Customer
Designed Temp Control
“The development of our TempControl
product for pharmaceuticals and other temperature-sensitive
commodities typifies our strategy for added-value
products.
“We want
to be as knowledgeable about the pharma industry
as we can, and we set out to learn from forwarders,
manufacturers, regulatory agencies, and patients.
“United
Cargo utilizes that knowledge in both product
development and execution.
“All
TempControl’s innovations have started
with something we’ve heard from our
customers or their customers.
More
Of The Same
“We see a valuable opportunity to enhance
our other added-value products using the same
development model we used for TempControl.
“This
is one of our team’s focus areas for
2017.
“Of course,
whatever the product, the region, or the business
you’re after, the formula doesn’t
change: you have to be better than your competition
in the ways that mean the most to your customers.”
An impromptu team photo of the very
dedicated and talented women of United
Cargo at the TIACA Air Forum in Paris
last October. In on the fun are (L to
R)—Helen Kristensen, Managing Director
Strategic Accounts United Cargo Sales;
Peggy Guse, Managing Director, Marketing,
Customer Service and Alliances; Cailey
Lantz, Senior Staff Representative Events,
Media and Budgeting Marketing; Lidia Dawid,
Strategic Partner Manager (based in Frankfurt);
Sharon Hogg, Manager Interline; Gina LeSeth,
Manager, Cargo Business Transformation
and Bozena Multack, Sr. Regional Performance
Manager Cargo Operations, Europe, Middle
East, India, Africa. |
Number
One & The World View
“I believe United Cargo has the smartest,
hardest-working, most energetic, and proactive
global team in the air cargo business.
“Every
team member is committed to doing our best
to promote the highest level of satisfaction
for every participant in the transport supply
chain.
“That
commitment to our customers, and to quality,
has solidified United Cargo’s standing
as the number one air cargo carrier in the
Americas in 2016.
“We’re
happy with that, but we’re not satisfied.
“We know
we can grow more, enhance our services, and
be a more valuable cargo resource for our
customers.
“Our
goal is to be the best belly cargo carrier
in the world.”
Works
In Progress
“One of the improvements we have been
working on, and one we will advance further
in 2017, is ensuring all our plans and actions
acknowledge that, while we are U.S.-based,
United Cargo is first and foremost a global
carrier.
“This
ranges from producing country-specific training
and training materials in the learner’s
first language to ensuring we meet the same
standards of timeliness and dependability
in our worldwide locations that we do in our
U.S. hubs.
“Another
focus for our team in the new year is an even
greater spotlight on the enduring priority
of safety.
“Lithium
battery shipments have generated the most
attention in this area and, since devices
powered by this source continue to grow in
popularity, we need to remain vigilant to
ensure we transport lithium batteries safely.
“But
batteries are only the most obvious of air
cargo safety issues.
“United,
like other U.S. carriers, is in compliance
with the FAA requirement that air carriers
develop and implement the standardized Safety
Management System.
“While
every responsible industry stakeholder operates
from a safety mindset, all SMS carriers will
share the same positive safety culture and
will proactively manage risk in a consistent
way, making our supply chain even safer.”
What
We Can All Do Together
“Since collaboration is a key to our
logistics model, I believe all of us participating
in the supply chain can do a better job innovating
our processes to serve a changing marketplace.
“The
rapid implementation of e-commerce is an example
of the type of opportunity that challenges
our ability to adapt.
“Buyers’
preferred retail channels are changing, so
the question is how quickly can we deliver
shipping solutions to these customers and
those who are selling to them.
“Turning
the evolution of the market into a positive
for our industry will require higher levels
of creativity, flexibility, and cooperation
among shippers, forwarders, and carriers,”
Jan Krems said, adding:
“We
know that forwarders and carriers have the
route structure, capacity, operations, and
expertise to link manufacturing centers and
consumers in both established and developing
regions.
“But
we need to use our assets in new ways to better
connect, and connect with, e-commerce shippers
and customers.”
Cuba
Si! What's New & Next?
“Last year was a banner opportunity to
add new cities and route expansions on United,
and we closed out 2016 with some exciting enhancements.
“On November
29, we operated our first flight to Havana,
Cuba, in more than 50 years.
“United
now operates daily nonstop flights between the
Cuban capital and our Newark hub, along with
Saturday nonstop service from Houston.
“We haven’t
begun United Cargo service to and from Havana
yet, but our team is working to make this happen
and we look forward to announcing the details
to cargo customers in 2017.”
TempControl
By Widebody
“Recent expansion of widebody service
in the Americas is providing a real boost
to our TempControl service.
“On December
16, United increased widebody service between
Newark and San Juan, Puerto Rico, from once-weekly
767 service to six times weekly 777 service.
“There
are 49 FDA-approved pharmaceutical plants
in Puerto Rico, and temperature-managed containers
designed for widebodies are the preferred
shipment method for many pharma shippers,
so this upgauge gives TempControl customers
in SJU a level of widebody connectivity they
haven’t enjoyed before.”
Heart
To Heart With Xi'an
“We were also pleased by the business
generated in the first year of our pioneering
service between SFO and Xi’an, China.
“This
seasonal nonstop service, which ran from early
May through late October, was the first trans-Pacific
flight to Xi'an operated by any airline, and
United was the first U.S. airline to serve
XIY. We’re looking forward to supporting
the region’s import/export trade to
an even greater degree when we resume the
route early in May 2017.”
Even
More
“In April 2017, United will add a second
daily widebody nonstop between our Los Angeles
hub and London Heathrow.
“Most
of the other new routes announced to begin
in 2017 are domestic routes, although our
APAC customers will continue to benefit from
fleet adjustments that are bringing more cargo-friendly
passenger aircraft into the region.
“More
APAC routes are now flown with Boeing 787s,
which provide up to a 30 percent increase
in volume and tonnage over the equipment previously
used.”
Geoffrey |