The first thing you'll notice if you walk with Jan Krems is that he is probably moving faster than you are.
     It seems that whether connecting to an appointment or just going out to lunch or even on his way to relax somewhere (an unlikely possibility), Jan is determined to get there soonest!
     Once we were both at a convention somewhere and it was 0500, and as we passed each other moving silently in opposite directions during an early morning constitutional, I felt the rush.
     For a long time now, been wondering what makes the man tick who made history during the pandemic, and yet today is rewriting the script as United Airlines Cargo President with imagination and brilliance, as he pivots and inspires?
     But is Jan racing with the clock?
     At my age you think about those things.
     I think not.
     His approach is total engagement whilst having the time of his life advancing air cargo.
     Lucky for tomorrow, Jan Krem's air cargo looks better every day.

FT:  How would you characterize 2023 in the overall scheme of things? What do you know now that is guiding your moves for the rest of the year and shall serve to continue into 2024? (How is 2023 and what do you expect in 2024)
JK:  This is a year of resetting and adaptation. After the turbulent events of the past couple of years, our primary focus for this year has been to return to normalcy—or at least get as close to it as possible.
     Our approach in 2023 has been many-sided. We've taken a look at various markets, seeking opportunities for business growth, identifying areas where we can tap into additional capacity on our existing routes, and exploring new partnerships that can increase our operations. One trend we've observed is the return of some business from freighters to airlines, as some players the industry may have overcommitted to customers and struggled to maintain profitability.
     Throughout this year, our commitment to delivering added value has continued to pay off. We've managed to maintain a respectable level of yields, even in a challenging business landscape where price wars are a constant threat. Many airlines seem to be in a race to acquire business at any cost, even if it's not financially sustainable—I won’t name them—but they are not profitable. Our focus on value addition has been a key differentiator.
     The importance of relationships has been more evident than ever. We've witnessed both positive and negative examples of how partnerships can shape the industry. Navigating this tough year has been challenging, especially when compared to the heights we previously achieved. However, the support and understanding of our board members, who recognize the need for adaptation during this reset year, have been invaluable.
     Looking ahead to 2024, I am cautiously optimistic. We don't anticipate a significant shift in our budget compared to 2023. We believe that we've already witnessed the bottoming out of yields, with some regions, notably Asia, even showing signs of yield improvement. As China and other Asian countries gradually open up further, we anticipate a gradual return to this region.
     We look forward to 2024 with cautious optimism. We expect a focus on stability and an eventual return to growth in key markets.

FT:  What would you say as top United Cargo executive to the fellow air cargo community as what everyone should be focusing upon to advance air cargo moving forward? (What should everyone be focusing upon to advance air cargo moving forward)
JK:  As an industry, we should collectively focus on:
     •  Recognize the Value: COVID-19 demonstrated the important role air cargo plays in global supply chains. We must continue to emphasize and communicate the value of air cargo to businesses and governments alike.
     •  Sustainability: Sustainability is not just a buzzword; it's a necessary requirement for the future. Invest in eco-friendly practices and technologies to reduce the industry's carbon footprint.
     •  Connectivity: Strengthening connectivity and collaboration across the air cargo ecosystem is key. The ability to seamlessly integrate and share data and resources will drive efficiency and reliability.
     •  Digital Transformation: Embrace digitalization to streamline processes, reduce paperwork, and expedite transactions. Being faster, more efficient, and less reliant on manual paperwork is the way forward.
     •  Cost Efficiency: In an increasingly competitive landscape, focus on cost efficiency. Seek ways to make deals that benefit both you and your customers, ultimately driving down costs and providing competitive pricing.
     By embracing these ideas, we can advance air cargo as an industry. United Cargo is playing an active role in driving these advancements, and we encourage all stakeholders to join us on this journey.

FT:  What surprised you post COVID as pax capacity and pax travel came back? The impact on cargo . . . rates adjustments, etc.
JK:  The post-COVID era has brought about some surprising shifts in the aviation industry. One of the biggest has been the enthusiasm of passengers to resume traveling. Despite the uncertainties of the pandemic, people want to explore, connect with loved ones, and experience new destinations. Also unexpected was the rapid return of business travel—we predicted it, but it is good to see that it happened. While virtual meetings and collaboration tools like Microsoft Teams and Zoom had become essential during the pandemic, it was surprising to witness how swiftly business passengers expressed their eagerness to return to face-to-face meetings. In-person meetings for building relationships and closing deals is important in every industry.
     On the cargo side, there was an unexpected drop in air freight yields as passenger travel demand picked up. This was due to the increased availability of cargo space on passenger flights, intensifying competition and lowering yields.
     The post-COVID landscape has highlighted the resilience of the travel sector.

FT:  Two words that seem to continue to be on everyone’s lips “Sustainability” and “Digitalization”. United has certainly been on the forefront of emissions reduction, carbon footprint advocacy and the investment in electric. Can you comment on both subjects?
JK:  We believe the industry needs to be bolder when it comes to climate change; our strategy to become 100% green is centered around four key pathways:
     A.   Reducing our environmental footprint with investments in Sustainable Aviation Fuel (SAF),
     B.   Innovating transformative carbon reduction technology,
     C.   Removing carbon emissions in the atmosphere, and most importantly:
     D.   United seeks out suppliers with commitments to sustainable business practices in order to enhance the sustainability of United’s operations, products, and services. Collaborating with our partners: freight forwarders, Cool-chain container providers, passengers, airports, and policymakers to facilitate faster action and the commercialization of technology solutions concerning climate change.
     From a cargo perspective, collaboration is key. We must work together to and empower and define how customers and shippers make smarter choices to reduce emissions.
     Digital innovations in the air cargo industry can increase revenue by improving operational efficiency and enhancing the customer experience online. Digital automation in cargo handling and documentation ultimately reduces labor costs, removes human error brought on by manual work, and streamlines processes.      Digital solutions enable better forecasting, optimizing cargo capacity, and pricing strategies which all ultimately lead to increased revenue opportunities. Prioritizing digital capabilities will help the freight industry adapt to changing market dynamics, meet customer needs and drive revenue growth.

FT:  United is positioning itself in Asia. What are your initiatives for cargo in that region?
JK:  Our key message is clear, we are back again. We have in our pockets the biggest increase of flight activity in the past years. We are going to increase flights more than double in Oceania and increase flights in Hong Kong, Taipei, Shanghai and Tokyo. We are restarting Beijing again and start new services to Manila. As more countries open up, we will look at restarting routes and expanding our network.

FT:  Can you share other priorities?
JK:  Our priorities at United Cargo are driven by a commitment to excellence and customer satisfaction. First and foremost, we maintain a customer-centric approach, placing our customers' needs, preferences, and challenges at the forefront of our operations. Building strong relationships within the industry is another core focus. Collaborative partnerships with stakeholders, including airlines, logistics providers, and government agencies, form the foundation of our growth and innovation efforts. These relationships open up new avenues for us to better serve our customers.
     Adding value is an fundamental aspect of our approach. This includes providing specialized services, offering end-to-end solutions, or creating unique selling points that set us apart from the competition.
     Quality assurance is non-negotiable for us. We uphold consistently high standards of quality throughout our operations, from cargo handling to shipment tracking. This unwavering commitment builds trust and reliability.
     Adaptability is a vital trait in the ever-evolving air cargo industry. Staying ahead requires agility and a keen eye on market trends. We proactively explore emerging opportunities and remain ready to pivot as needed.
     Having a global perspective is imperative in our increasingly interconnected world. We closely monitor global shifts in manufacturing and trade, especially the relocation of factories, such as those in Asia. This presents both opportunities and challenges that we are prepared to address effectively.
     Our approach also emphasizes the importance of two-way agreements with customers, moving beyond one-way transactions to create mutually beneficial partnerships that leverage our strengths and add value to both parties.      
     Expanding our global footprint with the same customer in different regions is a winning strategy.
     Additionally, we are focused on enhancing our e-strategy, facilitating direct connections with customers' systems, and offering innovative ways to book shipments.
     Sustainability remains a top priority, aligned with the crucial need for environmental responsibility in the aviation industry.
     Keeping our customers close and increasing the range of added-value products, including our Specialty offerings like TempControl, QuickPak, LifeGuard, and LifeGuardXL, are integral to our service portfolio.
     In essence, our priorities are rooted in delivering exceptional service, fostering collaboration, staying adaptable, and addressing the evolving needs of our customers and the industry as a whole.

FT:  You came to your post as a professional agent of change. What you headed up was going through IT changes, rapid expansion, adding new destinations both at home and abroad and then had to exist during a global pandemic during which the employee demographics changed drastically. Give yourself and the team a report card.
JK:  When reflecting on the challenges and transformations we've experienced, I would give myself a rating of 8. However, I firmly believe that it's the extraordinary dedication and perseverance of our team that deserves the highest praise. I would rate my team a 10.
     Our team has been the driving force behind the IT changes, rapid expansion, and the successful addition of new destinations, both domestically and internationally. They have consistently demonstrated a commitment to innovation, excellence, and adaptability. Even in the face of the global pandemic, when employee demographics changed drastically, our team rose to the occasion.
It's our collaborative effort and the remarkable teamwork of our employees that have enabled us to overcome obstacles, drive positive changes, and emerge stronger. I'm proud of what we've accomplished together, and I have a lot of confidence in our team's ability to excel in the future.
     Business report: What parts of the world look good moving forward in 2024?
When we assess the global landscape for 2024, several regions stand out with promising prospects:
     •  SE Asia appears to be on a positive trajectory and a key focus for United Cargo.
     •  Certain parts of Europe, including France and Italy, show particularly encouraging signs.
     •  Specific regions within the United States are displaying positive indicators.
     •  India's economic potential and burgeoning middle class continue to make it an attractive market. However, it's important to note that geopolitical conflicts, such as airspace restrictions due to tensions involving Russia, have impacted operations in this region.
     •  An increase in stability and economic activity in certain Middle Eastern countries could translate to growth opportunities for air cargo.
     While these regions hold promise, it's important to note that the geopolitical landscape and other external factors can influence the air cargo industry's trajectory. We remain adaptable to navigate any challenges that may arise, ensuring that we continue to deliver reliable and efficient cargo services to our customers worldwide.
GDA