Vol. 11 No. 101                                                                                                          Wednesday October 15, 2012

 

air cargo news October 17, 2012

 

     As FIATA delegates gathered in downtown Los Angeles, California, this past week, the global group’s return to the USA marked 30 years since its last appearance on these shores, and also the 50th edition of the FIATA World Congress itself.
     FIATA, in French "Fédération Internationale des Associations de Transitaires et Assimilés," in English "International Federation of Freight Forwarders Associations," in German "Internationale Föderation der Spediteurorganisationen," was founded in Vienna, Austria on May 31, 1926.
     Today FIATA, a non-governmental organization, represents an industry covering approximately 40,000 forwarding and logistics firms, also known as the "Architects of Transport," which employ around 8-10 million people in 150 countries.
     So back to the USA came the largest non-governmental organization in the field of transportation.
     Last week’s FIATA brought global influence with its presence, and with its impressive session program, a continued effort in the quest toward empowering transportation through universal understanding.
     The event hummed along like a well-oiled machine with a steady, understated atmosphere devoid of any overt attempt toward artificial stimulation.
     The ambience of FIATA 2012 was deliberate and worked fantastically as a platform, hosting several quality, all-day sessions on various topics of common interest for the nearly 1,000 delegates. Dozens of static booths were neatly arranged, offering a view to various industry offerings in an atmosphere that encouraged networking.
     The FIATA World Congress of 2012 often felt like a big friendly block party—interesting food was on hand to boot—with lots of good friends.
     Kudos to Robert Voltmann, President of Transportation Intermediaries Association (TIA), which hosted the event, and of course Marco Sorgetti, Director General of FIATA, along with Stanley Lim, current President and Jean Claude Delen, past president, have set a course of continued growth for the legacy organization during the past four years.
     Serious business put on this show, but delegates were blithely unaware of the behind-the-scenes action that transformed a complex, vital industry event into an easy, breezy affair.
     The Voltmann team’s selection of the Hyatt Hotel, a giant hostelry that has been in business for over 40 years, in Century City was absolutely brilliant.
     Nestled in a jumping neighborhood—great for shopping or just taking a stroll—the Hyatt delivered on every front, offering delegates a simple elevator ride from one’s room into the action, with both the session venue and the trade-booth networking hall across from each other.
     This annual event went off without a hitch as the global community of freight forwarders, logistics service providers, and customs agents met for several days in an atmosphere of discreet, cordial civility to discuss the most important issues of their trade.
     Speakers at the 2012 FIATA World Congress were composed of an unprecedented number of top level, transport-related service officials from all over the world, discussing a complex agenda that spoke to all forms of transportation, including air cargo (see next article).
     This gathering was an action to commitment as well. For example, FIATA delegates attending this World Congress endorsed the joint FIATA/CLECAT position paper on the issue of mandating container weighing in ports.
     Robert Keen, the Chairman of the FIATA Working Group, noted:
     “FIATA is not blind to see that this is a real issue, especially in regards to our members’ expectations in terms of compliance and best business practice.
     “There is no question that precise weight declarations are an advantage for all parties concerned.
     “The question we have analyzed is another: Do we need container weight legislation and, if there were such legislation in place, would its cost/benefit analysis justify the effort?
     “FIATA is wholeheartedly behind any incentive to make container weighing more precise; we are less inclined to accept such an issue be on the legislative agenda.”
     The Multimodal Transport Institute (MTI) of FIATA is the arena where the interests of freight forwarders and logistics service providers were met.
     One of the key policy making structures in FIATA, the MTI (Multimodal Transport Institute) adopted a position paper on transport emissions that for the first time catapults FIATA to the core of the political debate on sustainable logistics.
     Chris Gillespie, the Chairman of the Multimodal Transport Institute, recognized the work done by his delegates at the session, stating, “FIATA members are aware of the issue of emissions in transport. Despite the efforts made by our members in the areas of the supply chain that are handled directly by them, there still exists a grey area of concern, where transport emissions grow, despite all the laudable efforts deployed so far to contain them.
     “This work was done principally by our maritime delegates, but it is multimodal by its very nature, as emissions are a multimodal issue and an international one indeed.
     “Emissions know no boundaries and do not stop for customs. This is why FIATA thinks that an international solution is necessary and it is urgent for the United Nations’ agencies to lead this debate in view of solutions that can be acceptable for all.”
     It is worth noting that TIA, which hosted the event, brought an interesting and expanding group of 3PLs to center stage.
     Robert Voltmann (in photo L with FT Publisher Geoffrey Arend) told FlyingTypers:
     “TIA helps its member companies in third party logistics better manage their companies for growth and profit by lobbying to protect their businesses from harmful regulation and by providing a strong voice for this important industry to (U.S.) Congress, the Administration, states, courts, shippers, carriers, plus international organizations.
     “TIA also provides education, research, and networking for CEOs and their employees, designed to improve current operations, expand into new disciplines, and provide a competitive advantage for member companies.
     “The 1,200-plus member companies of TIA realize service and products benefits that provide recognizable return on member dues investment add up to a competitive advantage for our association.
     “In addition to promoting the highest ethical standards whilst developing best practices to enhance and protect shareholder value, TIA also works to promote the use of our members by shippers and carriers.”
Geoffrey/Flossie


     For those familiar with IATA, the Airforwarders Association (AfA), and similar industry bodies, FIATA is a rather different animal altogether. Whereas airlines and/or forwarders are members of IATA or AfA respectively, the membership in FIATA, as its name reveals – International Federation of Freight Forwarders Associations—is mostly composed of the national forwarders’ association of member countries. However, individual, i.e. company, membership is possible. The result is that forwarders are generally represented by delegates of national forwarder associations. The decision-making process can be drawn out.
     Forwarders are multimodal services providers, and as much as air freight just finished burnishing its credentials at last week’s TIACA show in Atlanta, it remains a relatively modest sector when compared with ocean and road transportation.
     As this year’s congress took place in the U.S.—a first in thirty years—it is instructive to note that the U.S. membership of FIATA is a grand total of two, namely the National Customs Brokers & Forwarders Association of America (NCBFAA) and the Transportation Intermediaries Association (TIA), with the latter co-locating with the FIATA congress. TIA represents the third party logistics companies.
     Based on comments FlyingTypers received, Bob Voltman, TIA president and CEO, his staff, and the FIATA organization really created a superior event that featured a comfortable atmosphere for networking and learning. The events were well attended by an interesting combination of global freight forwarders, U.S.-based truck brokers, and third party logistics companies. In fact, the content was so interesting that having to choose one learning session over the other became a challenge, since they ran in parallel.
     As most of the world's cargo is transported by land and sea, it is not surprising that many of the exhibitors and attendees were companies tending to concentrate on these modes. Still, the program managed to emphasize learning content relevant to all interests, including understanding U.S. regulatory issues, economic forecasting, credit and insurance, and partnership selection techniques.
     TIA sessions focused on how the U.S. transportation works, obligatory regulatory and compliance matters, and the economy. The FIATA program started by highlighting U.S. imports and then the regional meetings – Africa/Middle East, Asia/Pacific, America, and Europe.
     Day two got around to the Airfreight Institute, the FIATA body with which FlyingTypers readers may be mostly acquainted because its members work directly with IATA through the IATA/FIATA Consultative Council. Interestingly, an education session titled “The Good, the Bad and the Ugly” dealing with liability, security, and the availability of equipment and how to make the most of it in the current environment was moderated by Brandon Fried, the U.S. Airforwarders Association executive director. This is an organization that has no formal relationship with FIATA, which is curious given that it represents 200 forwarder companies in the U.S. and also has airline members.
     The air cargo-related sessions were well attended, particularly the Wednesday morning "Airfreight Institute" sponsored by FIATA with IATA in attendance. The recently instituted IATA/FIATA "Cargo Modernization Project" represents a shift in IATA's perception of the forwarder from an airline's agent to customer. Existing resolutions will need amending to reflect the change, but the proposal also envisions seven regional joint councils, each comprised of six carriers and six forwarders, ad-hoc groups to determine financial and training criteria, a FIATA advisor to the IATA governing board, maintaining CASS with a review, and mutual agreement of payment frequency cycles. As previously reported here, details will be presented at the 2013 World Cargo Symposium, with the rollout planned for 2014.


     It's no secret that the relationship between IATA and FIATA has had its contentious moments, and this session was no exception. This time the IATA business practices in India were sharply criticized, with the IATA representative remaining remarkably patient and attentive to all concerns. Tensions rise or ebb as time goes by because the parties pulling the strings in the areas of disagreement are not direct actors that interact regularly between forwarders and airlines, but rather IATA bureaucrats, not held unaccountable despite Tony Tyler.
     Brandon Fried of the Airforwarders Association said he agrees with the perception that IATA should be considered a partner from the "same side of the table" since both FIATA and IATA are partners, and looks forward to working with FIATA, IATA, and CNS in working to promote the new proposal and a future cooperative relationship.
     Chris Kenally, U.S. Customs and Border Protection, presented the new Air Cargo Advanced Screening (ACAS) initiative to the full conference, explaining that the program driver is national security and that while freight forwarder concerns will be acknowledged and addressed, the ACAS will become mandatory after the first of the year. Brandon stated that AfA looks forward to working with CBP throughout the pilot phase to help the agency solve ACAS filing concerns so that all entities can enjoy easy access to the system through a number of methods. AfA remained concerned with the current lack of forwarder pilot participants and urged CBP to quickly include those who have applied and are in the decision review phase, with the hope that CBP will increase its outreach efforts to forwarders outside the U.S., since those entities will be the ones creating the ACAS filings well before flight departure.
     From a congress participant perspective, the fees were $1,150 for regular delegates; an exhibition 10’X10’ booth went for $2,150, with the larger, island/peninsula stand (20’X20’) for $8,600. Relatively affordable, especially when compared to the recent TIACA show.
Ted Braun


 


     FlyingTypers recently caught up with Ingrid Sidiadinoto, Managing Director of UPS Singapore. UPS reckons it moves approximately two percent of global GDP each year and Singapore is the Asia Pacific headquarter of this logistics giant, so Ingrid’s appointment last year was a major step for women in the logistics industry in Asia.
     As a graduate from the University of Washington with a Bachelor’s Degree in Industrial Engineering, Ingrid was originally attracted to UPS by the company’s pioneering decision to start an Industrial Engineering department. Prior to taking over in Singapore last year, she worked in numerous roles within UPS with responsibilities ranging from operation expansions and business planning development, to package operations efficiency and cost savings initiatives.
     Ingrid’s position as MD for UPS Singapore encompasses three key responsibilities: identifying market opportunities; representing UPS Singapore to internal and external stakeholders; and acting as a liaison between Singapore and UPS globally.

     “I really enjoy my current role as it gives me the ability to touch on all different aspects of UPS’s business units, be it our Express, Freight Forwarding, or Logistics,” she says.
     It goes without saying that Singapore is one of the leading logistics hubs in the world due to its strategic location and a pro-business regulatory environment that saw it again ranked first in the most recent World Economic Forum Enabling Trade Index. Used as a base for regional distribution by many global manufacturers, its world-class port and airport make it a natural center of operations for many logistics executives in Asia, not just UPS.
     "The fact that Singapore is the best global performer specifically in its efficiency of import-export procedures and in the availability and quality of transport services speaks volumes to the nation's role as a major hub for trade in the region,” she says.
     “UPS in Singapore acts as the Asia Pacific headquarters for this region, enabling the efficient facilitation of both International and Intra-Asia trade to, from, and within the Asia Pacific region. For example, small packages originating from North Asia to locations in the South Asia region and Australia get consolidated, sorted, and distributed from Singapore for greater savings for our customers, especially if the packages are in transit in our free trade zone areas.”
     Last year was a mixed one for UPS, which was forced to make cutbacks across its network due to volume declines on the Asia-to-U.S. lane. “It was important that UPS remained flexible throughout that period, and we did so by responding quickly to reduce duplicate flights and airlifts, thereby maintaining service levels,” she explains.
     “However, this capacity cutback was purely isolated to the third quarter and UPS reversed it once demand improved in the fourth quarter. At the same time, we reassigned Asia capacity to our freight forwarding business and other segments until demand improved. This move provided us with the opportunity to enhance services within our Intra-Asia network, where trade is anticipated to grow significantly over the next few years.”
     Despite the tough trading conditions last year, UPS Singapore was still able to open a dedicated healthcare distribution facility for the region at Changi Logistics Park. The facility is equipped to meet the stringent and often complex regulatory requirements of healthcare products, and supports the company’s already extensive logistics activities within Airport Logistics Park of Singapore (ALPS), an industrial hub created to support trade via Changi Airport.
     Ingrid admits the logistics industry is not the easiest sector in which women can progress, but believes the rewards are worth the effort. “I would say that it is challenging, to some degree, for a woman to succeed in the male-dominated logistics industry,” she says.
     “Women, still being the minority in the logistics industry, might be expected to prove their worth more when they take leadership roles in this industry.
     “However, I do think that the situation has improved significantly over the years. In Singapore, for instance, I am seeing an increase in the number of women working in the logistics departments of our clients’ offices and this is very encouraging. I hope that this will attract and encourage more women to join this industry, because I am of the belief that women should never feel limited about what they can and cannot do.
     “The times have changed and both genders should participate in the workforce in equal capacity, and should not be limited to any field based on those historical standards. The same goes for the men in fields that might historically be more female-dominated.
     “I think nowadays, both males and females can and should take part in family responsibilities. If they can have an equal standing in contributing to the economy, why can’t that apply to the family?”
     She is proud of UPS’s commitment to equal opportunities via various internal programs, most notably UPS’s Women Leadership Development (WLD) initiative. WLD originated in the US and Singapore headed the first Asian WLD program with its launch in 2010. “With WLD, the key is getting our management to understand the importance of diversity, and diversity between genders in particular,” she explains.
     Ingrid chaired the Singapore branch until recently and remains an advisor. “My role as Chairperson in 2010 and 2011 was to further the program objectives in ensuring that we provide a supportive environment for our female workers at the workplace to strike a balance between work and family commitments, something that I continue to advocate. This is essentially encouraging and enabling the attraction, development, and retention of women leaders in UPS through networking, mentoring, education, and community-based involvement. The committee also engages their male counterparts to better understand how they can work better with female executives.
     “All my bosses, both male and female, coached and mentored me and gave me the vote of confidence to strive. That is why I am where I am today and why I find it extremely important to contribute and help the women employees of our organization to strive.
     “I am certain that UPS will maintain this culture in the next 100 years, and that it will certainly help lessen the challenges for women that work in what was once known as a male-dominated industry.”
     When she’s not running UPS’s large Singapore organization or pushing for equality, Ingrid finds relaxation in the company of friends. “Spending time with people who matter most to me in my life has always been a way for me to relax. I also have been doing yoga for the past few years in my life, which not only calms and relaxes me, but also provides some form of exercise.
     “I certainly think that everything in life is what you make of it, and there can be calmness and relaxation to be found in between the hectic day-to-day routines.”
SkyKing


Abigail Tana
Carmen Taylor
Pin Kee Chong

Katja Wichmann

Women At Kingfisher

Maria Garcia

The Atlanta IFFCHBA

Flossie Arend

Budoor Al Mazmi 

 

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     A couple of weeks ago we ran a story about one of our all-time favorite airplanes, the fabled Boeing B377 Stratocruiser.
     In case you missed that story, Click Here.
     We found this outstanding video from Pan American Airways and forgot to include it with our story—it was shot back in the 1950s.
     Take some time today to return to those thrilling days of yesteryear.
     From out of the past comes the thundering footprint of reciprocating piston engines, as a 100-ton airplane with about 60 people aboard takes off across the Atlantic, bound for Europe from New York City.
     Here, traveling folks cruise in overstuffed seats, eating, drinking, laughing, and passing out the smokes.
     Just wait ’til you get a load of the galley and meal service!
     Up, up, and away we go!
     Pan Am flies again.
Geoffrey

 

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