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   Vol. 23 No. 44
Wednesday November 6, 2024
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United Cargo Decade Of Jan Krems

Jan Krems

     As Jan Krems, President United Airlines Cargo approaches a decade atop the U.S. giant legacy combination airline, we spend a few minutes here with Jan prior to his appearance next week at The TIACA Air Cargo Forum taking place at The Miami Convention Center.
Jan Krems and Geoffrey Arend      When you think about it, Jan today at age 64 is as robust, dynamic and hands on as someone half his age. Jan came out of the KLM Cargo culture where he later rose to upper management of the Air France KLM Martinair Cargo combine, before United Airlines made what has turned out to be the absolutely brilliant move of bringing into their cargo division the most innovative thought leader at any airline in the world today.
     Several standouts in the Krems decade include the fact that this man is simply a superb leader of people with a fine, generous and absolutely devoted commitment to his team and airline.
     Jan, turning on the power, completely changed and streamlined the air cargo culture at United Airlines.
     But the most impactful was his handling of the cargo division during the COVID meltdown when he marshalled all the forces of the giant airline around his superb understanding of air cargo and its great potential and put the airline to work when the passengers were all at home in lockdown.
     Standard of the world is what Jan built for United Cargo during COVID with the rest of the airline industry quickly following suit.
     The payoff of the Krems leadership in cargo post COVID, is what the world of shippers discovered as legions of customers have never gone away.

We asked Jan how he views United Cargo’s performance in 2024? What were the high points and challenge?
     “In 2024, United Cargo’s performance was outstanding, clearly outshining the competition due to our unwavering commitment to quality and excellence.
     “It’s a bold statement, but it’s one that stands true.
     “Despite the geopolitical challenges, such as restricted airspace over Russia affecting routes to India, and limitations on flights to Tel Aviv, we’ve navigated these complexities with agility and have still delivered an outstanding year.
     “One of the most notable high points was our revenue performance, which is a testament to our operational capabilities and customer-centric approach. Speaking of customers, our engagement has been another highlight, particularly the events we’ve hosted, like customer events in Korea and Hawaii, which have strengthened our connections and fostered lasting partnerships.
     “Looking ahead, the factors propelling our business are many. Our robust fleet, customer relationships, and secured fixed business due to our recognized quality are all pivotal. Despite the ongoing challenges in the Red Sea region and the broader implications of global warming on payload capacities, we are optimistic. The global economy’s growth signals opportunities for network expansion, with new destinations on the horizon.
     “Our organization is evolving, not just in size but also in how we serve our customers, whether it’s through e-commerce or other ventures.
     “However, it’s the relationships with our existing customers that remain the cornerstone of our business, and any additional capacity will be leveraged to explore new avenues like e-commerce.”

What would you want attendees of the TIACA Forum to take away about United Cargo?
ACF United Cargo Booth 711     “At TIACA, the key takeaway I want to impress upon attendees is the resilience and positive outlook that United Cargo embodies, even amidst global uncertainties. The business landscape is undoubtedly challenging, with various geopolitical and environmental factors at play. However, it’s crucial to focus on the positive strides we’ve made and the strength we’ve drawn from these adversities.
     “We believe in the power of positivity and the impact it has on our industry. It’s not just about weathering the storm but also about finding ways to thrive within it. Our message is one of hope and determination. We want to inspire our partners and customers with a can-do attitude that reflects our commitment to excellence, no matter the circumstances. This positive approach is what sets us apart and what we hope every attendee will carry with them long after the event concludes.”

What drives you the most? The joy of winning or the fear of losing?
     “What truly motivates me is the joy of winning. There’s an undeniable thrill that comes with each victory, a sense of accomplishment that fuels my passion for the cargo industry. I don’t harbor a fear of losing because every setback is an opportunity to learn and grow. As long as we give our best effort, there’s value in every outcome. Winning is delightful, but even in loss, there are lessons that pave the way to future successes. It’s this positive mindset and continuous pursuit of excellence that drive me and, by extension, drive United Cargo to new heights.”

The East Coast strike has been delayed to January. What did we learn from it? And what is your goal to mitigate a possible disruption?
     “The situation with the dock workers and the potential East Coast strike has been a point of focus for us at United Cargo. Our learning from this is that while we are in the air cargo business, we are also part of a larger ecosystem that thrives on stability and continuity. We don’t wish for disruptions, not just because of the potential short-term gains for air cargo, but because we understand the negative implications it can have on the country’s business landscape as a whole.
     “Our goal is to mitigate any possible disruption by being proactive and prepared. We are not waiting for such events to unfold but instead are working on strategies to ensure that, should a disruption occur, we can maintain the flow of goods and minimize impact on our customers and the broader economy. It’s a delicate balance, but our priority is clear: we want the country to continue to conduct business without interruption, and we are committed to playing our part in that.”

Anything you have to say about 2025 new destinations?

     “As we look towards 2025, I’m excited about the potential of exploring new destinations. While Mongolia and Nuuk may not be on our cargo route map just yet, they are places that hold a special allure for me personally. My younger son has already expressed his eagerness to visit Mongolia, envisioning adventures like hunting with a bow and arrow. Greenland is another destination that captures the imagination with its vast landscapes and unique culture.
     “These destinations represent the spirit of exploration and the desire to connect with different parts of the world, which is at the heart of what we do at United Cargo. While these locations are not currently part of our cargo network, they embody the adventurous spirit that drives us to expand our horizons and explore new possibilities. Who knows? In the future, they might just become part of our ever-growing list of destinations as we continue to evolve and meet the needs of our global customers.”

How do you deal with capacity shortages, infrastructure constraints, regulatory hurdles, fuel prices, technology disruptions, environmental sustainability?
     “In response to the many challenges we face, I’d say let’s share a drink, and then sleep on it—sometimes the best solutions come to you when you’re not overthinking at the bottom of a glass.”
GDA

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Publisher-Geoffrey Arend • Managing Editor-Flossie Arend • Editor Emeritus-Richard Malkin
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Special Assignments-Sabiha Arend, Emily Arend
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