Vol. 10  No. 24                    WORLD'S MOST LOVED AIR CARGO PUBLICATION SINCE 2001                       Thursday March 10, 2011


MUG MoU—Award for best group shot at the World Cargo Symposium in Istanbul goes to (L to R) Marc Baan, VP Marketing and Ecommerce, Air France KLM; Saskia van Pelt, Director - Business Development Cargo, Amsterdam Airport Schiphol; Jan Vreeburg, Director - Logistics and Industry Affairs, KLM Cargo; Enno Osinga, Senior VP Cargo, Amsterdam Airport Schiphol; Young-Geun Lee, Executive Vice President, Incheon International Airport; Yeong Chong Choy, Vice President Alliances, Air France KLM; Jae Chul Sohn, General Manager, Korean Air as Amsterdam Airport Schiphol and Korea’s Incheon International Airport signed a Memorandum of Understanding (MoU), in which the two major cargo gateways will cooperate in the promotion of “e-freight” (paperless air cargo transportation) as a means of facilitating business and, at some point, even further stimulate the use of e-freight between and from both Schiphol and Incheon.


Friday Night Massacre—TSA Ramps Up Air Cargo Security Demands


Winter wonderland in Istanbul as IATA World Cargo Symposium week unfolded.

     At the IATA World Cargo Symposium in Istanbul, Turkey, held March 7-10, Air Cargo Security was the hot button topic amongst most stakeholders who came to the meetings for dialogue and answers.
     But events in Washington, D.C. may have conspired to make discussion of security much like the wild weather over Turkey this week; everybody talks about it, but no one has the ability to do much to effect the inevitable outcome.
     On the eve of WCS, apparently just to make things interesting, TSA sent out another “Emergency Amendment” (EA) to international airlines consisting of some new cargo screening rules and regulations. The amendment indicated some major changes in TSA Cargo security rules going into effect as you read this on March 10, 2011.
     Some carriers received the announcement late last Friday afternoon, March 4, and early Saturday morning.
     “Over the weekend, we received notice that there are to be several changes in the way we conduct our security checks, with deadlines a couple days later whilst most top air cargo executives are en route to IST,” said one WCS attendee.
     “No one can doubt that TSA has best practices for security at heart,” said another conferee.
     “It’s just the ambush nature of a whole new set of edicts that demand compliance or else.”
     “The TSA notice was also viewed in some circles like some kind of ‘Friday Night Massacre’ delivered at a time when most stakeholders were at home over the weekend,” said yet another source.
     “But the worst part is that the rationale of TSA seems to go something like this:
     “‘We have a problem in our ongoing effort to insure better air cargo security.
     “‘We are not sure exactly what the problem is, but here are some more new rules on how you must conduct your business.
     “‘Now you prove to us that there is no problem or these rules are impossible to enact and maybe we will consider changes.’”
     You, dear reader, have probably noticed that very few people if any have gone on the record here.
     Well, be advised that everyone in air cargo lives with some fear and dread of TSA behaving as this 800-pound gorilla that really has its ticket punched to do as it pleases and goes about its business answering to someone other than the airlines whose very livelihood depends on moving the cargo.
     IATA may not have been much help either, although the agency did communicate some concern to the international airlines affected by this latest EA.
     In a letter obtained by FlyingTypers, IATA made some suggestions and apparently some phone calls, but essentially could do little more than to advise the carriers directly impacted to speak up and voice their concerns to TSA.
     “IATA has been expressing our concerns on this latest round of EAs on cargo to the White House, State Department, DHS, and TSA over the last several days,” the letter said.
     “We stressed that many of the problems we are experiencing could have been avoided and the operational impact lessened, had foreign air carriers been given the opportunity to review and comment in advance.
     “In our various conversations with the USG, and TSA,” IATA wrote, “we have been assured that the intent of the EA was to ease the burden on the industry of the EAs from the printer cartridge incident.
     “We are working to arrange a series of emergency calls for the international community with TSA and we expect these to take place in a few hours.
     “While IATA has delivered broad-based industry messages on the impact of the EA, your airline needs to bring specific concerns directly to TSA,” the letter concluded.
     Since everyone agrees security is job one in air cargo these days, consensus concerning best practices should be an ongoing dialogue rather than a sudden and unexpected set of new rules with the edict ‘comply or else,’ as occurred on March 4.
     So while IATA Cargo tiptoes around this latest security issue, it continues to choose to stash its power in these matters and a beleaguered industry is left to go it alone, with maybe future support of the fledgling GACAG that was only formed a couple of months ago at TIACA Amsterdam and barely has had time to get its feet wet.
     For the record, FlyingTypers reached out to both TSA and GACAG for comment.
TSA replied:
     "After last year's thwarted attempt by terrorists to ship explosives aboard aircraft headed to this country, TSA immediately took a number of steps to enhance security by tightening existing air cargo security for flights to the United States.
     “The terrorist threats we face are serious, and TSA continues to modify these precautionary measures based on the latest intelligence.
     "We are working closely with the air cargo industry and intelligence community to institute measures to keep the traveling public safe.
     “We will continue reviewing these procedures in light of the latest intelligence to stay ahead of our adversaries and keep the traveling public safe.
     "For security reasons, we cannot disclose specific details of security directives."
     There may be good reason for the obfuscation as there are so many events currently affecting critical parts of the world and not everything can or should be aired in public.
     Basically, taking the consensus of all comments, the problem with the TSA “Emergency Amendment” is that no one is clear on exactly what to do.
     Our best guess is that they (TSA) were trying to simplify things, but in fact confusion reigns right now around which x-ray to use and when to use it – or, when not to; for example, when is it better to use sniffer technologies and when that will not do, and whether it’s the airlines, the forwarders or the shippers themselves who are responsible.
     Rules and regulations once thought understood are changed without warning or consultation as air cargo is left spinning out of control with entirely new TSA parameters for security.
     For example, TSA directs that shippers need to receive specific communication from the airlines outlining the changes.
     But some airline people FT spoke to said that while communicating with their customers is not a problem, they are (at this point) unsure what should be the proper wording on the documents.
     Another problem is interpretation, which seems to be an ongoing obstacle with air cargo security.
     Each airline has its own interpretation of the rules and no one seems to be on the same wavelength, so the result is that most everyone, while attempting to do a good job with cargo security, often ends up spending lots of time and money, rather than just getting clear direction for a common standard.
     Everybody tries to fulfill what is possible while awaiting explanations and clarification from TSA.
     No one doubts that air cargo security needs to be more “us,” meaning private sector, and “them,” meaning government, all in it together rather than always “us versus them.”
     Maybe the TSA “Emergency Amendment” of this week will finally impact and empower air cargo to stand together to address the core issue here.
     Air cargo must stay the course for consensus, common ground and cooperation, and TSA needs to not only embrace but demonstrate a true inclusionary attitude to secure the air cargo skies.
     Everybody needs to get and stay on the same page as we move ahead.
     This week’s World Cargo Symposium and Conference have been overshadowed and rendered impotent by these developments.
Geoffrey/Ted

 

 

Traxon And ABC Sign Accord

      Moscow-headquartered AirBridgeCargo Airlines (ABC) extends its cooperation with Traxon Europe. Traxon, international e-communications provider for the air cargo industry, and ABC signed an agreement on March 9th at the World Cargo Symposium 2011 in Istanbul for the implementation of the TRAXON CDMP solution.
      Pictured in Istanbul is Tatyana Arslanova, Executive President of ABC, and Felix Keck, Managing Director of Traxon Europe, signing the agreement for TRAXON CDMP.
      “The TRAXON Cargo Data Management Portal (CDMP) collates and evaluates performance data collected along the airfreight transport chain as specified by the IATA Cargo 2000 initiative. The performance data are visualized in easily understandable graphics, and all data are made available to all authorized partners along the transport chain in real time. Thus airlines and their partners always have the same information available. In addition, a complete data history on shipment basis (after entering an air waybill number) or by station can be produced,” said Mr. Keck.
      “We want to improve our service quality and reduce flaws in the transport process with the help of TRAXON CDMP.
      “Before we made our final choice, we compared three CDMP providers and came to the conclusion that Traxon best met our expectations for the platform in terms of interface usability, reports generated and functionality of the system.
      “TRAXON CDMP is a well-proven tool. The verifiability and reliability of the measured data as well as the easy access to the information are a definite bonus.
      “Thus real process improvements become possible and traceable. With the help of the CDMP we will be able to assess very easily how well our service providers and the forwarders have actually processed each shipment and the accompanying documents,” explained Tatyana Arslanova.
Geoffrey/Flossie

 

Snapshot IATA WCS 2011


Attendance levels and breadth of attendees stand out this year. Well-organized, plenty of time to network.
     Session topics all should factor into industry participant’s strategy portfolio, particularly security.
     Move onward later this week to San Diego, California, and the clear message AA Cargo wants to send to the AirCargo Conference there is:
     Thanks for the business.
     Ten thousand miles between Monday and Friday?
     Sheesh, all in a week’s work.

 

Lufthansa Cargo Appoints

     Meet J. Florian Pfaff (right), currently Lufthansa Cargo Vice President Area Management Europe and Africa, who is to assume responsibility for the cargo carrier’s home market, Germany, as the new Vice President Area Management Germany, effective May 1st.
     He succeeds Jürgen Siebenrock, who has been appointed Area Manager “The Americas” for the Lufthansa Passenger Airlines.
     Also Carsten Wirths (left), who is currently Head of Services & Operations Germany West in the Lufthansa Passenger Business and responsible for the airline’s bases in North-Rhine Westphalia, is to take over as Lufthansa Cargo Vice President Area Management Europe and Africa in a region encompassing around 120 stations in more than 90 countries.
     “These appointments signal that we intend to continue on our successful course in the important markets of Germany and Europe/Africa,“ said Dr. Andreas Otto, Lufthansa Cargo Board Member Product and Sales, to whom Pfaff and Wirths will report in their new functions. “Both are long-serving Lufthansa executives with immense experience in the aviation industry and are ideally equipped to further strengthen our market position.”
Flossie


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Geoffrey,

     I have been reading the articles on air cargo security for the past few years and the complaints by the industry.
     I have always said and believed that the governments of the world are not completely qualified by themselves to determine the rules for air cargo security.
     Many people feel it involves the same basic principles as on the passenger side of the business.
     But as Bob Crandall said years ago, “Most people understand the basics of the air passenger business because many of us are passengers, but none of us are boxes so very few of us fully understand the air cargo business.”
     I believe that the governments will continue to add layers of additional air cargo security on the industry. The principle effect of those layers might hurt the business with little effect on security unless the industry takes an aggressive leadership position on the subject.

Bill
Bill Boesch
(Bill Boesch is former President of American Airlines Cargo and today is at large in Afghanistan teaching logistics to the military.)


RE: Trucker Road To Security

     First of all, thanks to you Geoffrey and to Ted for the article in the March 9th edition highlighting the issues regarding the new TSA regulations, forwarders and their trucking networks.
     FlyingTypers is doing a service to the industry by bringing attention to a significant new administrative burden for which many forwarders are unprepared.
     To clarify the numbers I presented at the conference, we estimated that if a forwarder does business with, for example, 100 trucking companies, this would require over 500 man-hours per year simply to administer the TSA's new requirements with full diligence.
     As Ted pointed out in the article, if those trucking companies participate in CNS Trucker Listing, the burden is reduced by half.
     The most important step our industry can take to mitigate this looming administrative burden is to encourage your trucking vendors to become CNS Trucker Listed – now!
     CNS has tools that will help its participants.
     Simply email truckerlistingsupport@cnsc.us.
     You will receive a spreadsheet that helps you estimate the hours you can expect to devote to this new task, as well as sample letters you can send to your vendors to encourage them to get with the CNS Trucker Listing program.
     We hope you will act now. August 1st will roll around very quickly.

All the best,
Gregg
Gregg Borgeson
Ex Works, Inc.
www.exworks.com

 

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