Change Needed Urges CNS Chairman

     At the big CNS Partnership Conference in Las Vegas a sobering warning was delivered by outgoing CNS Chairman Guenter Rohrmann.
     Mr. Rohrmann who has served at his post for the past six years told the agthering:
     “It is time for air cargo to realize that we need to develop, in conjunction with our customers a more sustainable way of pricing in our business.
     “A key thought that I want to share with you is the fact that the world has changed.
     “I realize that this will hardly come as a shock to most of you who are probably thinking so what?
     “The world is constantly changing, but in a cyclical industry such as ours it is all too easy to use the background of constant change to justify doing nothing.
     “Our industry has become rather good at this, and today I believe many of our underlying problems stem from an inability to act in a timely manner to real changes in our operating environment.
     “In more than half the world freight forwarders are still obliged to live under an industry regulatory regime that does not recognize the true role they play, nor the true value they bring to the air cargo industry.
     “It is time for the airlines to work with us to develop a global partnership program that effectively serves the needs of both parties.
     “Before anyone accuses me of forwarder, bias, I should add at this point that the forwarding industry also needs to recognize the new reality–airlines are no longer immune to the needs to be profitable, as many once were when they flew as flag carriers for their respective countries. By commoditizing their offerings and driving prices down to in some cases below break even levels we are placing our supply chain partners in a perilous position.
     “Neither forwarders nor our customers stand to benefit if we end up driving our capacity providers out of business. It is time for us to also realize that the world has changed, and that we need to develop, in conjunction with our customers a more sustainable way of pricing in our business.
     “Please don’t think that all changes are negative – one benefit that has come from the financial difficulties of the airlines in recent years is a recognition of the contribution that cargo can make to the overall financial health of an airline. Within passenger carrying airlines the cargo department is generally a much more valued entity than it was five years ago.
     “That recognition translates into better access to resources, including improved IT systems and even additional air freight capacity. If as an industry we can deliver sustainable improved profitability we can expect to see airlines become even better equipped to meet the demands of our joint customers in the future.
     “Positive change is being recognized within IATA.
     “A key industry organization that for many years only paid lip service to our part of the business, IATA has recognized that its world has changed.”
     Keynote speaker Scott Dolan, President United Cargo called for greater industry cooperation and increased IATA attention to the challenges of air cargo.