Out front leading the way in Paris this week are some of the very dedicated and talented women of United Cargo. They kindly took a time out for an impromptu team photo at the TIACA Air Forum in Paris on Wednesday. Superlatives abound as the ladies describe United Cargo results so far during a very challenging year. We heard lots of words like “great,” “unexpected,” and “thrilling.” In on the fun are (LtoR)—Helen Kristensen, Managing Director Strategic Accounts United Cargo Sales; Peggy Guse, Managing Director, Marketing, Customer Service and Alliances; Cailey Lantz, Senior Staff Representative Events, Media and Budgeting Marketing; Lidia Dawid, Strategic Partner Manager (based in Frankfurt); Sharon Hogg, Manager Interline; Gina LeSeth, Manager, Cargo Business Transformation and Bozena Multack, Sr. Regional Performance Manager Cargo Operations, Europe, Middle East, India, Africa.

In an era when there is no looking back, Jan Krems keeps looking up. Twenty-eight months into his command position as President of United Cargo, he assures us that things are getting better every day.

 

Jan Krems conducts a master class for individual and team entrepreneurial thinking. The actions that turned the airline with the golden worldwide network into an air cargo powerhouse informed Jan’s master class.  

     Despite a challenging, capacity-driven, lower-yield horizon, United has made a remarkable turnaround. Their business plan seems to be clicking on all levels and has propelled the Chicago-based carrier into one of the fastest growing airline cargo offerings on the planet.
      Numbers are up as CTMs soar. United carried 714 million CTMs in Q3, an 11.6 percent increase YOY. Of course, those yields are still challenged, but according to Jan, there are reasons to hope that the gap between capacity and demand growth is narrowing. Also, as the hoped-for Christmas surge season approaches, it looks like this year’s seasonal peak might just have a pulse.
      When Jan assumed command of United Cargo just a scant two years ago this past July, things at UA were not all beer and skittles.
      Given the spate of headaches and hangovers that generally accompany airline mergers, the Continental-United consolidation wasn’t the worst of all time. However, it had its share of challenges and obstacles. The cargo side of the merger was complicated by UA’s attempt to simultaneously integrate a new, sophisticated IT system, “UC360,” into its cargo offering.
      It was a rough patch getting past the growing pains and realizing the new system’s benefits. Although it took its sweet time, Jan affirms that UC360 has now begun to deliver on its great promise.
      But Jan, who is quick to declare that others left him with “a very manageable assignment,” has brought an enthusiasm and customer following that befits his extensive air cargo management career and impressive intellectual background. The big carrier, with its fabulous route system and fields full of cargo-friendly, widebody jets, is definitely feeling the benefits.
      Jan Krems at United is compelling and simply irresistible.
      It is almost as if the stars lined up just for Jan. As 2016 continues with the glimmer of a rebound in business, this native of Oss, Netherlands, is on top of the world.
      “We had really great people, we have added some more, and we’ve made a few simple yet vital changes in the way we work together.
      “Once United Cargo had people in what I call separate silos doing their jobs, a task made even more difficult by the variation in cultures coming together during the merger process.
      “So the team worked together to break down the walls, and now everyone realizes our goals are the same and we all support and appreciate each other.
      “Today United Cargo has the best, smartest, most energetic, and proactive global team in the air cargo business.
      “Our cargo team is doing amazing things every day and while we continue to deepen and refine our approach, I could not be more proud of the effort and can-do attitude.
      “Every team member’s efforts contribute to the rise in our customers’ satisfaction. That’s the most significant thing for our future, as it portends not only developing richer relationships with our partners, but also an incentive for us to continue our efforts toward improving our offering.”

With Respect To The Future

      “Speaking of partners, and thinking about the three key players in any shipment—the customer, the forwarder, and the airline—what’s immediately obvious is that we need each other!
      “It’s vital to respect the importance of each role and to recognize what each party brings to the table.
      “We’re always thinking about ways to better our industry, but when we’re considering changes and innovations, we need to keep in mind that ideas need to work from all three perspectives to have any long-term value.
      “Of course, it’s important to have respect for the past and everything it has to teach us.
      “But we all realize that, whatever success our industry has had in the past, the answers we need to move our business forward won’t be found there.
      “In all of our organizations we have young people who have grown up with consistently advancing technology. They are eager to employ these tools to launch us into a far more technically advanced future, and as an industry we need to give these bright minds the freedom to explore better ways of accomplishing current tasks and conceptualizing new ones.
      “One of the most valuable things history can provide us is a challenge.
      “When we think about the progress made over the past 25, 50, or 75 years, it raises a difficult question.
      “Will we, and those that come after us, be able to look back years from now and see that we made similar progress?
      “We have an impressive legacy to live up to, but I’m confident that today’s forwarders and airlines have the drive and the energy to make our own mark on history.”

What We Have Learned

      “It’s essential that we not only provide reliable services to meet current demand, but also reach out directly to ensure we fully understand the markets that will drive future growth and development. This is key to expanding our offering at every level to drive new business partnerships from the ground up.
      “Therefore, our team is out there every day all over the world uncovering and developing new shipping combinations and opportunities.
      “We are talking to companies involved in many different commodities to learn what products and processes we need to better serve our growing air cargo business.
      “We’re not selling outside our forwarder partnerships, but rather we’re learning as much as we can together with our partners to develop first-hand knowledge for a best-case offering that will enable us to lead in the future.
      “For example, this summer we brought Manu Jacobs aboard as our Global Head of Pharma Sales.
      “Manu was AF/KLM’s Director of Global Pharma Business Development, and he is accelerating the evolution and expansion of our pharmaceutical business through his deep knowledge and direct contact with major pharma shippers.
      “Again, we are not making the deals with these shippers, but every bit of insight into what the shipper wants and needs put us in a better position to deliver a superior product offering.
      “I think the future belongs to these types of long-term arrangements, where predictable and reliable rates and services go hand in hand.
      “Understanding and commitment on all sides of the shipping equation will help our industry perform better now and create a solid foundation as we move ahead,” Jan Krems said.

Lessons & Humility

Vol. 15 No. 83
FIATA 90th Anniversary Issue
Chuckles for October 24, 2016