sk Peggy Guse, Director of United Cargo Sales Strategy, Marketing and Customer Service, what is new and deserves to be shared with the global air cargo business and her answer is immediate:
     “Our cargo sales strategy is always pointed toward delivering world-class sales account management by cultivating mutually beneficial relationships with our customers.
     “The key to achieving this in 2013 is to recognize, promote, and utilize the many benefits of our integrated cargo organization and unparalleled network.”


     “For United Cargo Marketing, 2013 is the ‘Year of the Product.’
     “In 2012, we re-defined and harmonized our product line and integrated our capacity, technology, and customer accounts.
     “In 2013, we will continue to aggressively promote the strategic advantage of the unequaled combination of our products and our network.
     “The key phrase in all United Cargo customer-facing activities for 2013 is ‘getting back to basics.’
     “We want to ensure that our entire organization—including Customer Service agents, Sales team members, and Operational staff—have the skills and attitude required to deliver best-in-class customer service.
     “United will also redesign and enhance our cargo website and expand our customer service metrics to track the progress we make and determine where more work needs to be done.”


     “One area of advantage is our specialty products.
     “Some examples: we scan our QuickPak product and have an extensive courier network, TempControl is expanding into new markets and features unique customer- and commodity-specific SOPs, and our innovative UASecure high-value product is recognized as an industry leader.
     “Among our network opportunities, we are utilizing connections to our narrow body fleet and trucks to connect Asia and Europe with more locations in the U.S., Central America, and South America.”

     “Last year was a challenging one for both United Cargo and the cargo industry.
     “In 2012, United Cargo harmonized our products and processes, transitioned to a single air waybill and moved our capacity and customer accounts onto a single technology system.
     “Among the goals for 2013 is to regain and grow our market share by reducing service failures and restoring our customers’ confidence, improving our product offering and the quality of our customer service, and realizing the synergies of our merged network and cargo business.
     “One thing that surprised me in 2012 was the amount of over-capacity in the cargo marketplace. Despite weak demand, there were new freighters entering markets where you’d expect carriers to be pulling out. Our industry doesn’t have an exemption from the law of supply and demand, so this excess capacity resulted in the expected downward pressure on rates and yields.”

     Peggy Guse oversees the critical post as United Cargo Sales Strategy, Marketing and Customer Service.
In addition to being very bright, Peggy remains approachable despite the weight of her job. Peggy is responsible for developing and implementing sales strategy for United Cargo's worldwide sales organization.
     Peggy also oversees United Cargo’s product development, advertising, and direct customer service, and supports efforts through the carriers’ two customer service centers.
     Her responsibilities also include government, interline, and specialty sales.
     Prior to joining United Cargo, Peggy held positions in United’s Contact Center Strategy and Sales Strategy groups.
     She has held management positions in the car rental, hotel, and travel agency segments of the industry—including three years as Vice President of Sales Strategy, Communication, and Staff Development for a major global travel organization.
     Just like many high-powered executives today, Peggy studied Finance at the University of Illinois, where she earned her BS.
     “I’ve been in the travel industry 26 years and have been fortunate to enjoy wide-ranging experience in the airline, hotel, car rental, and agency segments.
     “It wasn’t until I joined United six years ago that cargo piqued my interest.
     “I was drawn to the hidden opportunities in air cargo that are often overshadowed by the passenger side of the business.
     “I’m still a relative newcomer on the highly-tenured United Cargo team.
     “But in my two years, I’ve become convinced there’s even more hidden opportunity in air cargo than I originally thought.
     “This is truly a fascinating business and I’ve only scratched the surface of what there is to learn.”


     “To be honest, I don’t really think about ‘men versus women’ in the workplace.
     “For me, it’s more about capabilities rather than gender.
     “I’ve certainly heard it said that ‘cargo is a man’s world,’ but there’s no benefit in dwelling on that concept.
     “I’d rather ignore all the stereotyping and just focus on the available opportunities—and there are plenty of opportunities to go around!
     “I’ve been married for 20 years, and work/life balance has always been a challenge.
     “Like most of my peers, a 40-hour week is only the beginning of my work commitment. I’m extremely fortunate to have a very understanding and supportive husband.
     “We routinely compare our calendars for the upcoming week on Sunday evening, and try to find time to accommodate a personal life between work demands.”


     “Looking ahead at what we all can do to improve the business, the air cargo industry needs to do a much better job of incorporating advancements in technology.
     “When it comes to utilizing technology, we’re behind the times.
     “Whether it’s performance management tools, facility scanners or website bookings (to cite just a few examples), cargo can learn a lot from other industries—and even from the passenger side of the airline industry.”


     You talk to Peggy Guse about where she wants to deliver United Cargo and can’t help but wonder where all this drive, perseverance, imagination, and excitement for the job took wing.
     Peggy won’t back down, and handles that query like a batter hitting a fastball that has been thrown down the middle of the plate—out of the park.
     “While most people are lucky enough to have a mentor who impacted their career development, I’m more fortunate than most. My mentor is a very unique individual who has influenced every stage of my development: my Dad.
     “He’s not an airline guy or even a travel industry veteran.
     “He’s spent his life building an employee-owned and family-run retail business.
     “I think the values and attitudes Dad instilled in me would work in any position or industry. Dad told me early in life:
     “‘The harder you work, the luckier you get,’ and experience has proven that to be true.
     “Another of his principles I try to remember and apply is ‘Nothing’s more important than integrity.’”


     “At United Cargo, I believe we need to re-focus our energies on realizing the great opportunities we have before us, and especially on becoming easier to do business with.
     “Since the merger, we’ve been concentrating on integrating our cargo businesses while clearing the resource, operations, and technology hurdles along the way.
     “Now that the bulk of the integration work is behind us, I think we need to direct our attention more toward exploiting our strengths and less on the hurdles that remain.”


     “UA does a great job in putting some extremely bright people in the chief executive role.
     “I have no doubt that if the position was open and a woman was the best person for the job, United would not hesitate to name a woman as chief executive.
     “United Cargo is poised to assume a position of leadership in the air cargo industry.
     “Post-merger, we have incredible network synergies, product enhancements, and technology improvements on the near horizon, and the brightest people in the industry.
     “We are committed to achieving the highest levels of quality service and customer engagement.
     “Our time is now!”
Geoffrey/Flossie

ooking around the small group of display stands last week at WCS 2013 in Doha, Qatar, we noted that the Dnata IT resource CALOGI continued its unprecedented launch into the international community.
One reason CALOGI is getting so much attention and bears watching (in addition to its brilliant and ground-breaking menu of solutions for transportation) are Patrick Murray, Head of CALOGI Worldwide Cargo Distribution.
     CALOGI has been changing the landscape for a growing number of companies, and as this outfit gets better known, the migration will be thunderous.
     We asked Patrick for his take on WCS 2013.
     “WCS 2013 proved the perfect platform to introduce attendees to our product and talk to them about our launch, and I’m very pleased with the response.
     To support the launch we focused on explaining what we do through product demonstrations and highlighting how we can help move the industry to a paperless environment.
     “Our booth was busy—the dartboard once again proved to be a popular attraction, despite the amount of traffic at the booth.”


     In the opening session, Des Vertannes, IATA Global Head of Cargo, outlined the state of the industry, while summarizing IATA Cargo’s priorities.
     As expected, IATA has an e-AWB target of 20 percent by the end of this year, with the industry expected to be fully e-AWB by the end of 2015.
     Many believe (and hope) that the industry can achieve these goals. Many wonder if there is a clear roadmap.
     “Realizing such an aggressive target will require significant commitment from airlines and forwarders,” Patrick Murray said.
     “I believe larger forwarders will continue to work with airlines on structured programs to remove the paper air waybill and hopefully smaller companies will not be forgotten as a result.
     “Should smaller companies not be engaged, they will be at a distinct disadvantage as compared with their larger, paperless colleagues,” Mr. Murray added.

     Des also mentioned there has been a modal shift, with forwarders increasingly moving goods by sea, coupled with the threat from the integrators that makes this latest development even more worrying.
     The thought amongst people on the floor at WCS is that one way for traditional air cargo to retain its edge is to implement processes which give customers what they want: an easier way to do business.
     “To realize this simplified model, the World Customs Authority must also be included in the discussions and planning,” Mr. Murray said.
     “The industry needs a master operating plan for the air cargo supply chain; one that covers all aspects of transportation, including e-freight and security, which can be presented to governments by FIATA, TIACA, IATA, GSF, and the WCO.
     “This type of collaboration would give any changes a greater chance of adoption.”


     An interesting note from WCS: 66 percent of the audience was not aware of the exact nature of the work being carried out by GACAG.
     This highlights the need to do more to get the message across.
     Kudos goes to Pedro Garcia from Swissport for his open and honest portrayal of the challenges and lessons learned from an IT implementation at the strategy track session.
     One of the conclusions was that an IT project of this nature (the roll-out of a ground handling system) needs to be business driven.
     How many companies still rely on the IT department to take the lead when it comes to solution requirements, selection, and deployment activities?
     This is a high-risk strategy when you recognize that the key stakeholders are the business users.
     The presentation from Chuck Zhao, Cargo Airport Services (CAS), was given as part of the handling track.
Chuck described how CAS had removed paper from their import warehouse in New York by deploying iPads throughout the operation.
     Even the signature for goods pick-up is captured on the iPad.
     In his closing message, Chuck stated we should not accept the status quo.
     We concur; as an industry, we can no longer be quietly content with the complex way business is currently done.


     Another piece of information from WCS: airline yield, in real terms, has been falling by an average of 4.2 percent per year since 1999.
     This is another threat to our industry and, if larger freight forwarders are squeezing the rates or using sea freight because it is cheaper, then the pressure on yields will continue for some time.
     This means the only way to increase margins is to reduce costs through simplified processes, greater productivity, and doing more with less.
     Automating processes will support this strategy.
     “It’s good to see the multilateral EDI agreement has been officially released and hopefully this paves the way for more e-AWBs,” Patrick Murray said.
     “Though Calogi’s simple solution—digitally signing the conditions of contract—makes it easier for the smaller forwarder, let’s hope we now see greater adoption,” Mr. Murray added.
     As Steve Gunning, managing director IAG Cargo, said, when speaking about the e-AWB in his opening address to the e-cargo track:
     “It’s no longer ‘if,’ it’s ‘when.’”
     The ‘when’ is now slated for 2015; the industry, as a whole, must get behind this and make it happen.
Geoffrey/Flossie

      We hear Lufthansa Cargo Charter Agency made money in 2012, but is being shut down anyway. It is better than even money that MD Reto Hunziker makes a soft landing at Chapman Freeborn. As expected and reported here exclusively last December, Lufthansa Cargo Charter Agency disappears April 1 as Lufthansa signs a contract on cooperation with Chapman Freeborn later this week . . .
Cargolux Airlines flew first Boeing 747-8 freighter revenue flight to Hanoi Noi Bai International March 17 . . .
   " We will emerge as a well capitalized carrier delivering safe, high quality air cargo services,” Daniel J. McHugh, Southern Air CEO, said, as the company received permission from bankruptcy court to end Chapter 11 . . .
  After agreeing to expand their G6 Alliance across Trans-Pacific, Mitsui O.S.K. Lines, APL, Hapag-Lloyd, Hyundai Merchant Marine, Nippon Yusen Kaisha and Orient Overseas Container Line, said they can offer better network with competitive transit times and increased sailing frequencies . . .
    The Tanzania Freight Forwarders Association (TAFFA) has won the bid to host the FIATA Region Africa & Middle East (RAME) Conference, to be held June 19-21, 2013, in Dar Es Salaam, Tanzania . . .
    JFK Air Cargo Association 14th Annual Air Cargo Expo at Russo's on the Bay, 162-45 Cross Bay Blvd., Howard Beach, 11-3, Thurs. March 21, features Tony Charaf, Delta Sr. VP & Chief Cargo Officer as keynote. $80 at door, includes lunch . . .
    Wizz Air Ukraine looking to add Kiev to St Petersburg and Moscow . . .
    Turkish Airlines moving some cargo operations from its main hub Atatürk Airport to Sabiha Gokcen Airport . . .
    Iraqi Airways, last seen in LHR from BGW 23 years ago, restored the link March 5 . . .
    United Airlines went SFO/FLL head to head with Virgin America & Jet Blue with daily frequencies . . .
    Malaysia Airlines received first A380, added oneworld membership and returned to the black . . .
    VietJet Air Vietnam’s first privately owned LCC began just last December and now operates six A320s serving several Vietnam cities. Starting last week it began flights from Ho Chi Minh City (SGN) to Bangkok . . .
    Turkish airports handled 130 million passengers in 2012 up 85 percent since 2007 . . .
After adding 30 new routes in the last year, Turkish Airlines could overtake Delta Air Lines at Atlanta this year by offering the most destinations from a single airport . . .
    Brazil’s airports returned to growth in 2012, with domestic and international passenger numbers growing in double digits during the second half of the year . . .
    Air Arabia connected Sharjah to Baghdad March 11. Adel Ali, Group CEO, Air Arabia: “Three months after we launched our last destination in Iraq, we are delighted to spread our wings further into the country. Iraq is a market of focus for Air Arabia." . . .
    Now that U.S. airline consolidation is complete, American becomes the world’s largest airline. U.S. hubs by size are Dallas/Fort Worth, Charlotte, Miami, Chicago O’Hare, Philadelphia, Phoenix, Washington National, Los Angeles, New York LaGuardia, and New York JFK . . .

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     Cargo Week 2013 . . . The best part of Cargo Week in Doha, spending a couple of days in Dubai, and then going to Lisbon is being among all the wonderful people that make up the air cargo business, past and present.
     Make no mistake: this business is all about people, and witness to that are all the industry colleagues that become our closest friends.
     Here Geoffrey and Sabiha are pictured with Jan Meurer.
     Jan has been a friend since he was with KLM Cargo as part of Jacques Ancher’s team.
     Today Jan is retired and playing golf, on top of the world, but in true blue fashion, he still keeps his mind active.
     Who said living your love can’t make life eternal?
     Jan is also a top, big shot executive, having headed up KLM USA (before landing a dream job, reward for a great career as top management at KLM flight personnel).
     We called Jan “Wild Thing” in the pages of our newspaper, Air Cargo News, during the early 1990s—not because when he blew into a room, he sucked all the oxygen out; but rather because ebullient Jan had the exact opposite effect—he just made things better by carrying everybody farther.
     The years have been kind to Jan, and certainly kind to us, as we can still look at each other and laugh about life… and ourselves.