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   Vol. 13 No. 73  
Tuesday September 2, 2014


How IATA CEIV
Impacts Cool Cargo

How IATA CEIV Impacts Cargo

IATA Certifies Brussels Cool

     Last week, IATA announced that Brussels Airport “has become the first European shipping hub to adopt a cold-chain certification program for pharmaceutical cargo” which IATA claims to “go beyond GDP requirements.”
     GDP, for those not familiar with the term, means “good distribution practice.”


EU Already Has Standards

     By comparison European Community (EC) “Good Distribution Practice of medicinal products for human use,” already in place and practice in the 2013/C 343/01 Guidelines and based on Article 84 and Article 85b (3) of EC Directive 2001/83, are based on recommendations developed by the WHO (World Health Organization) and FIP (International Pharmaceutical Federation).
     These standards cover the entire process chain of development, purchase, production and distribution of pharmaceutical materials.


Brussels Not Alone

     So for Brussels airport, this does not mean that the airport will be an isolated island of knowledge but, according to IATA spokesman Chris Goater, the designation translates into “ground handlers, freight forwarders, truckers and airlines that use the Belgian airport will be trained how to ship pharmaceutical products in temperature controlled conditions.”


The IATA CEIV Scheme

     The new IATA CEIV (Center of Excellence for Independent Validators) certification scheme in short aims at making all stakeholders in the pharmaceutical supply chain aware of the particular needs for these highly sensitive and perishable products as well as providing standards for their handling, storage, transport and distribution.
     So far the IATA CEIV is a win-win situation:
     If adopted by further hotspots of pharma excellence and distribution, CEIV will help to speed up transport of pharmaceuticals in a safe and controlled environment, thus helping to avoid spoiling the highly perishable cargoes and avoid costly claims against forwarders and airlines as well as detrimental effects on public health because of the non-availability of these products.
     CEIV could also help also secure the position of the air transport sector as the transport mode of choice when transporting these commodities, since lately shippers have considered surface transport even for perishable and highly demanding cargoes.


CEIV Boosts Employment

     Not to be overlooked in all of this is that CEIV will put a considerable number of “Independent validators” in the position to make a living – no small feat since these validators will require initial training from IATA and the CEIV scheme itself should secure an additional stream of revenue for IATA themselves, much like the IOSA and ISAGO auditors which largely consist of senior staff from airlines and IATA strategy partners whose jobs were made redundant.


Spreading The Wealth

     While the latter may sound overly cynical it actually isn’t.
     The professional experience and track record of these auditors is impeccable and so are their achievements.
     However, the term “independent validators” suggests an independence which certainly is neither there nor actually desirable, since a very particular expertise is required to carry out such validations.

IATA CEIV Badge ThisNew IATA CEIV (Center of Excellence for Independent Validators) certification is promising it will raise awareness amongst all stakeholders in the pharmaceutical supply chain and provide standards for their handling, storage, transport, and distribution. It might even draw some business to air cargo.
But IATA should wait for a solid success and then pat itself on the back.


A Broader View

     IATA’s self-proclaimed mission is “to represent, lead and serve the airline industry”.
     While IATA as a whole is far away from being a charitable organization, and while many of IATA’s multifold activities are about generating revenue, there is one basic insight too often overlooked:
     Although the pricing of some of IATA’s products has at time drawn heavy criticism from users and stakeholders, one valid question has actually never been answered by even the most outspoken critics.
     Who else has the resources, the expertise and the international standing to push initiatives and improvements ahead?
     ICAO - as well as other UN bodies such as the WHO - move in closed circles with most unable for one reason or another or extremely reluctant to interact with anyone but government representatives.
     National organizations are simply not able to roll out something the industry stakeholders within the air transport industry would be willing to adopt as a whole.
     The failed EC ETS scheme which has drawn understandable criticism not just from IATA and individual airlines but also national governments such as the U.S. and China makes this point.


The Uni-Ampli Voice

     So indeed, it seems that the leadership role IATA claims is at this point in time at least, not challenged.
     And while IATA is not a regulator – something they’re ready to admit although at times like to forget for themselves; they are the unified – and amplified – voice of the air transport industry.


About IATA Manuals

     The IATA Restricted Articles Regulations were in place since 1956, long before regulators came up with the idea of regulating the air transport of dangerous goods by means of the ICAO Technical Instructions for the Safe Transport of Dangerous Goods by Air in 1983 1st edition.
     While one might have assumed that the ICAO TI should have made the IATA DGR redundant, but the not very user friendly format and the non-existing support from the side of ICAO warranted the continued unchallenged status of the IATA Dangerous Goods Regulations as the field manual applied to the transport of dangerous goods within the air transport industry.
     Gradually, it was IATA who pushed and established standards for other types of cargoes, such as Live Animals (by means of the IATA Live Animals Regulations in its current 40th edition), the Airport Handling Manual in its current 34th Edition, the Perishable Regulations in their current 13th Edition and others rather specific publications, such as the Airport Development Manual.


Manuals Are Big Business

     Consider that the IATA manuals are just the outward face of a booming business. Standards mean standardization, and standardization requires training, subsequent further standards for the exchange of data and construction of equipment and, maybe most important, seamless implementation and validation of what else, standards!


What Goes Around Comes Around

     IATA says CEIV certification scheme “goes beyond the GDP, as all industry stakeholders can decide to undertake the certification whereas traditional GDP are more focused on wholesalers or distributors”, adding that the certification would also “incorporate all the specificities of the air cargo industry whereas the GDP are generic across all modes of transport; and to that effect IATA has the expertise.”
     Since IATA has applied their traditional requirement (known from dangerous goods, IOSA and ISAGO certifications) that CEIV certification will require biannual renewal, both uniform high service standards and a secure stream of revenue should result from the CEIV scheme.
     Who Else But IATA?
     There is nothing wrong in an organization such as IATA taking the lead, filling gaps regulators have left and settings standards which are actually beneficial for everyone – not just the cold chain stakeholders in the traditional sense, but also the ultimate user of various vaccines and medications for whom the fast, secure and unaltered availability of these substances may often prove a matter of life and death.
     But we gently suggest that instead of rehashing the world of good IATA is doing all over again, IATA should let the facts speak for themselves.
     A good product is it’s own best advertiser, and supposedly this product will meet both industry demand and result in benefits to various stakeholders as well as the consumer.
Jens

Klaus Holler

A very “cool chain,” as we recall (and miss) our dear friend the great Klaus Holler of Lufthansa Cargo, who we imagine is out there somewhere in the Alps riding his Harley. Wie geht es dir, Klaus?



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