There are a lot of conferences going on right now, some as far away as two days by air, and despite everything else besetting the air cargo industry today, including the challenges of a down business year (so far), there is no doubt that these shows will go on.
     But for us, a good gathering with the intent to go deep into a single subject, while not much for giving out awards or filling up the coffers of some trade show company, air cargo publication, or even IATA for that matter, can be as beneficial to our industry as anything else going on in the world, no matter what the season may be.
     A good case in point was illustrated on March 5, as Lufthansa Cargo hosted its Fifth Security Conference, which is conducted every two years.

     To our knowledge, this effort is unique amongst all carriers, with Lufthansa Cargo as a major global factor in driving change and better understanding across the board in cargo security.
     So now after giving credit where it is due, what else happened?
     In a world where timing is often everything, the event this past Monday played against European Union security directives, which say March 25, 2013, is the deadline for member states’ shippers to be certified known shippers; air cargo from all other shippers will require exacting and cost-intensive security inspections prior to being allowed onboard aircraft.
     At Frankfurt on March 5 were some 300 attendees and that number, considering the subject compares, very well to many other high profile industry events.
     The agenda was simple and straightforward, divided into alternating presentations and panels, all deftly managed with a light touch by Harald Zielinski, Lufthansa Cargo’s Head of Security (left) and Nils Haupt, head of corporate communications.
     The gathering was informative, confrontational, funny and for folks who get hot thinking about security, or ought to, a hell of a ride in just a few hours.
     But the business was dead serious.
     The looming deadline for certification “known shippers” and how a potential avalanche of cargo from uncertified shippers would impact life at hub Frankfurt during peak time, between 8 and 9am, at gate 31 and 32, when up to 1,500 trucks pass through the Cargo City, brought home the reality of the world just outside the conference room windows.
     For Frankfurt, Europe’s top air cargo hub, to meet demand that cargo from unregistered shippers be screened at the airport will cause nightmarish scenarios with miles and miles of backed up trucks spilling onto the autobahn, waiting for their cargo to be processed.
     If anything, the conference was also a reminder of the deep and real cultural differences between Europe and America, and how perception is reality.
     Amongst attendees at this gathering were a shining cut of mighty Germany’s top supply chain and logistics representatives—shippers, forwarders, airlines, airports, ground handlers, truckers, and their respective associations—united in collective dismay at none other than a German government body imposing a security regime that they believe is harsher than neighboring countries.
     There is genuine concern that once enacted for Frankfurt, there could follow an erosion of FRA’s number one European spot as a cargo hub.
     As Harald Zielinski sees it, the basis for these regulations is one and the same European Union mandate.
     “This same set of rules is interpreted to mean a full stop in Germany, but turns out to be more of a benign warning sign in AMS and LUX and the equivalent of ‘bon voyage’ in CDG.”
     One of the speakers, Juergen Knipfer, (right) supply chain security manager for Siemens, suggested that since air cargo’s lingua franca was English, regulation ought to be in English to be consistent, rather than the currently disparate national versions in various EU countries.
     The keynote speaker, Gerhart Baum, (left) a former minister of the interior, made much of the security and freedom conundrum.
     Baum noted that Islamic terror was “unknown” compared to domestic terror in his time serving as interior minister, but one had to come to terms with it.
     He noted his experience in balancing privacy and human rights with security concerns and voiced his newfound support of the German supply chain industry for its competitiveness and reasonable cost of doing business while also maintaining security.
     Herr Baum declared that the German equivalent of the FAA—the LBA (Luftfahrtbundesamt)—would not be able to complete the certification process in good time.
     Mr. Baum suggested that pressure needed to be kept on elected officials as the current situation calls for urgent action.
     As an experienced politician, Baum said he had seen too many symbolic measures aimed to calm down public concerns with insufficient regard to cost and the impact on the supply chain.
     Rather tellingly, at this Lufthansa gathering, no other involved German government representatives from related ministries showed up, despite invitations, be it the interior or finance.
     The sole LBA delegate was in the unenviable position of serving as the whipping boy for all those that had a bone to pick; there were many, and none held back!
     Somewhere, one had to grudgingly respect the fact that the man showed up and tried his best to present the position of the LBA, firm deadline and all, and inform about efforts underway to optimize the application process and staff up.
     The LBA speaker reiterated that certification is a dynamic process, so there will be audits even in post-certification, including a re-certification audit every five years.
     In his remarks, Dr. Karl-Rudolf Rupprecht, (right) Lufthansa Cargo executive board member operations, noted that since 9/11, security has caused a tenfold increase in the cost of air cargo, which is untenable going forward.
     Despite the volume and more stringent security measures, Lufthansa has handled cargo with a 0.03 percent error rate.
     Rupprecht went on to list the bizarre situation of not being allowed to deploy screening technology (in use in the U.S. and elsewhere in Europe) in Germany, which was very unproductive and an irritant; his hope was that the conference would advance the discussion to affect a change in this state of affairs.
     Herr Ruprecht called for faster implementation of the certified known shipper approval process.
     Dr. Rupprecht said he found it was “neither comprehensible nor acceptable that U.S. authorities recognize security measures for air cargo from, say, France or Switzerland, but don’t recognize the virtually identical measures that apply in Germany.
     “The results are additional checks on all departures from Germany to the USA and an unacceptable competitive disadvantage for Germany.” He mentioned the new construction of the Lufthansa Cargo Center in Frankfurt due for completion in 2017-2018 and reinforced the fact that security is not negotiable, calling for an ongoing dialogue with all stakeholders.
     As the week continued in Frankfurt, global and European harmonization and reciprocal acceptance of security regimes was hotly and loudly debated, especially directed at a USA TSA delegation at the event.
     Led by the jovial Victor Parker, (left) TSA’s Washington-based branch manager, global cargo programs, the gathering learned first hand of the U.S. experience with 100 percent piece-level screening taking place at 1,500 screening facilities.
     Mr. Parker mentioned the remaining challenges, with inbound air cargo totaling 2.8 billion pounds on passenger aircraft coming from 94 countries, adding:
     “TSA understands the complexity of the global supply chain and has endeavored to increase security without impeding the flow of commerce.
     “In terms of cargo volume, the UK, Japan, Germany, France, and the Netherlands, make up 80 percent of US imports.
     “TSA is engaged in working with the authorities of these and other countries to recognize commensurate national security programs.
     “Mail was included in the program and evaluation criteria for security comprised of facilities, personnel, cargo screening, chain of custody standards, employee security training, and compliance and oversight activities.”
     As meetings on common ground can be surprising, we learned at Frankfurt last week that some security procedures can amaze.
     For example, some American and European authorities are far more comfortable using canines as an integral component of a total security-screening regime, differing from their German counterparts, who disallow their use.
     Yet paradoxically, both German police and Customs use sniffing dogs when inspecting airport air cargo warehouses!
     Another unapproved method in Germany, which is widespread elsewhere, is EDT—explosive sniffing technology.
     At the conference, speaker after speaker appealed to the LBA and the heavens to allow an all-inclusive security regime and not X-ray exclusively.
     Should X-ray remain the only authorized methodology, projections made by Fraport vice president real estate, Christoph Hommerich, estimated that about 100,000 square meters of real estate would be needed to install upward of 200 X-ray machines.
     Currently at FRA there are 30 machines to screen the expected onslaught on cargo from unregistered shippers.
     We also learned last week that a cargo action plan has been developed by major stakeholders forming the Cargo City Task Force for a Cargo City common IT platform that would include optimized truck deliveries and communications.
     Based on the response of the audience, in lieu of an applause-o-meter, Professor Elmar Giemulla (standing at podium) from the Berlin TU (technical university) did a superb job of broaching a dry and potentially explosive subject in a performance worthy of any top-notch standup comedian.
     The law professor’s witticisms, sarcasm and acerbic tone danced deftly between mock seriousness and a slew of legal complexities.
     His main point in all of this was that states regularly transfer to industry responsibilities that are inherently theirs to decide upon.
     Yet the certified known shipper program edicts exceed the traditional legal framework.
     In his talk, he raised the prospect of government liability when the state fails to act in accordance with its responsibilities.
     The good professor addressed the role and impact of the European Administrative Court, which may be called upon to rule vis-à-vis national laws, something he believes could be invoked in this instance.
     “While passing a law, the state was unable to manage and process certified known shipper applications in a timely manner, which stands to directly impact meeting the set deadline,” he said.
     So now the clock is ticking to March 25, 2013, when the certified known shipper program goes into effect, and the consensus here is that no one was entirely sure, but the estimated number of shippers ranged anywhere from 40,000 to 60,000 entities to be registered.
     Given that less than 5,000 applications have been received by the LBA, it was easy to understand the palpable frustration and rising anxiety nearing on open hostility to this seemingly immovable looming deadline staring everyone in the face.
     Summing up this Fifth Lufthansa Security Conference, some optimism was expressed concerning the certification by large shippers, which could in fact represent up to 80 percent of the total tonnage.
     But coordination and integration across the industry are required and encouraged in order to best cope with the total capacity and processes challenges.
Ted Braun

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