Vol. 8 No. 28                                            WE COVER THE WORLD                                                     Thursday March 5, 2009

Official On-Site Publication World Cargo Symposium Bangkok 2009                                    Day 4

WCS Focus On ULD Management

Keki Patel, Cargo Manager, India & Nepal, Emirates SkyCargo told Air Cargo News FlyingTypers that February featured flights into a growing list of ten stations, some 163 frequencies in all."Choices abound with our services into India including Ahmedabad, Delhi, Kolkata, Hyderabad, Mumbai, Bangalore, Chennai, Kozhikode, Kochi and Thiruvananthapuram. Staying close to the customer is an every day goal for us,"said Keki Patel.

      Cargo airlines that want to save cash and improve the quality of their transports should commence managing their unit load devices seriously.
      Fact is that carriers burn up to 220 million dollars yearly by not paying sufficient attention to their flying assets.
      By doing so "this indeed could print money for airlines," stated Bob Rogers, VP Asia/Pacific of Nordisk Aviation Products at the ULD track held Wednesday at IATA’s Bangkok World Cargo Symposium.
      Pictures shown at the meeting exemplified this. Heavily damaged LD3 containers that forklifts ripped off, toppled over trolleys because of false loading, torn up nets, missing straps and dent pallets were just a small demonstration of the shadowy existence of ULDs presented by various speakers.
      Because of damage, theft or demurrage airlines tend to overstock their ULD fleet "up to six times the number needed for aircraft utilization," criticized CEO James Everett of JMI Aerospace as an enormous waste of value.
      As equipment moves off airport "many airlines still don’t know what happens with their ULDs," emphasized the manager.
      Therefore, inventory is badly needed. "First thing you need to know is WHO has WHAT and for HOW LONG," he recommended.
      Mr. Everett also said "those who damage your devices you should bill. “This could save airlines as much as 30 percent of their ULD repair costs,” Everett calculated.”
      But looking back at the early days of containers in the 1970’s, substantial weight and material improvements have been achieved.
      Bob Rogers pointed that out saying that today more than 60 percent of modern containers weigh less than just a few years ago, with lighter devices to come.
      Air Canada’s Urs Wiesendanger and Albert Lo of Cathay Pacific said that carriers are already utilizing a large number of lightweight containers mainly made of composites with encouraging results.
      "Because we carry less tare weight we reduce our fuel consumption, while increasing both our payload and operating costs," exclaimed Wiesendanger.
      However, "before you go to lightweight make sure people can handle those ULDs," warned Joseph Chan of Hong Kong-based ground handler Jardine Aviation Services.
      Very often problems are not caused by hardware but human factor, he said. Therefore, Jardine launched specific training programs for supervisory level and above for airlines, ground service providers and freight forwarders. "What’s needed to prevent damages and losses is "a competent workforce with basic knowledge and skills," Chan told conferees at WCS.
      “What is also needed all the time in the ULD business is a stiff regime with daily inventory checks and sudden controls,” C.K. Ng of Hong Kong Int’l Airport said. “Are empty containers properly stowed in designated areas, do tractors tow no more than six trailers and does the personnel obey the speed limit of 25 km/h while driving across the tarmac,” are questions that need answers and constant monitoring Mr. Ng pointed out. If not it all will end up in chaos with nobody knowing where the ULDs are.
      By having imposed strict and highly transparent rules, Hong Kong International it should be mentioned is benchmark for properly managing the flying assets on the ground.
      But chalk up ULDs as a session highlight of Day three at WCS—professional, well attended with plenty of take away for stakeholders to go back to their office and think about.
Heiner Siegmund

Most To The Point Observation At WCS       Best description of current world air cargo business climate delivered at IATA World Cargo Symposium this week:      “Air Cargo is over the cliff,” IATA Director General and CEO Giovanni Bisignani delivering keynote speech by video on Tuesday to WCS delegates in Bangkok.
Aleks Popovich, IATA Head of Cargo:      "In the midst of the crisis 700 decision makers came to our event in 2009. They took time out and risk to shape industry action to battle the crisis and build the future. This is overwhelming and an encouraging sign that this industry is going to be successful.      "Thanks to everyone.      "We look forward to WCS 2010 to be held in Vancouver, Canada next March."

 

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Vorwerk Will Build CNS

Former Lufthansa Cargo executive Michael Vorwerk had just been appointed President of Cargo Network Services (CNS) and taken up the reigns March 1 having made a brief appearance in Bangkok earlier this week to a round of applause from colleagues in the packed opening sessions as Aleks Popovich, IATA Head of Cargo introduced him.
     By taking the lead at the Miami-based IATA subsidiary, the Berlin-born manager will follow Jens Tubbesing who quit CNS in July 2008.
     Michael, who spent several days this week getting to know new people and renewing old acquaintances gave Air Cargo News FlyingTypers an insight into his plans, motives, and visions in his first interview after being named late last month.

Q:   Michael, what especially enticed you to head CNS?
A:   To start with let me emphasize that I consider it a great privilege being appointed new CNS President and as an integral part becoming Executive Director for Cargo 2000, the global quality management system under the patronage of IATA. Especially in sluggish economic times with just about every player in the aviation and logistics industry struggling because of strong and gusty head winds, this responsibility will not be an easy task. My previous fields of activities in forwarding and airline industry are complementing my new duty at CNS. Before joining CNS I was Managing Director and COO of LifeConEx, a joint venture of DHL Global Forwarding and Lufthansa Cargo based in Plantation, Florida. Now, by soon heading CNS I appreciate the chance to broaden my spectrum by promoting comprehensive programs and solutions within CNS and IATA for the entire industry, and not only on behalf of a single company as before. This perspective indeed thrills me quite a bit.
Q:   When commencing your job next March what topic ranks on top of your to-do schedule?
A:   It is not one single issue that CNS prioritizes but a number of topics that we intend to push forward for further improving the supply chain. Take the aforementioned Cargo 2000 that shippers, forwarders and airlines can benefit from by both saving money and enhancing the quality of shipment flows. The result will be a better product that our industry delivers to the customer. One of the major tasks on our agenda is therefore, to convince more industry partners to embrace Cargo 2000. This we intend to achieve by demonstrating case studies that visualize typical shortcomings along the supply chain and how implementing Cargo 2000 as a tool can avoid them. Irregularities are an unfortunate part of the daily working routine; we need to make them transparent by systematic measuring in order to address them with continuous improvements.
Further we have to put focus on customer requirements, which is, by the way, the central message for this IATA World Cargo Symposium. Up to now, many supply chain participants are doing a good job in optimizing their own processes, which, however, does not mean, that the sum of these many efforts lead to a perfect transportation chain. Therefore, we have to work on a new collaborative thinking by knitting together the different industrial partners to develop joint solutions. IATA’s WCS is an appropriate forum for discussing this issue and presenting some encouraging quality partnership projects.
Q:   Supposedly e-freight ranks high on your agenda as well.
A: It certainly does. In the passenger business IATA was successfully able to drive the implementation of electronic ticketing within a couple of years. Now, in airfreight the implementation of E-Freight will not be easy because of the complexity of the processes and the many players involved. But despite all the challenges we are determined to push this issue ahead because it simplifies the processes, saves money and leads to better results. Generally speaking we have to enhance the automation of the cargo processes. There, I see a wide field for leverage especially in economic downturns like today that inevitably will trigger off new concepts in our industry.
Q:   What will be your first task starting day as CNS President?
A: To participate in IATA’s third World Cargo Symposium here in Bangkok. I will be officially introduced, which gives me a good start with the opportunity to meet many important stakeholders from a large group of industry representatives and to learn first hand about more details of the most prevailing industry agenda topics.
A:   Good preparation for me as well for the upcoming CNS Partnership Conference 2009 from May 3-5 in California.
Heiner Siegmund

Gathering Where Content Is King

     Conferees attending IATA World Cargo Symposium all this week in Bangkok already know that although the lousy business climate makes the option tempting, this is definitely no time to duck your head in the sand.
     Prediction of a continued draw down in overall business prospects for 2009 has already exacted a toll, as travel and trade show budgets have lightened up faster than the proverbial ice cube in hell.
     No doubt about it.
     Business 2009 has been impossible.
     Here was an industry well on its way to a better than alright year in 2008 when wham, bam, no thank you maa’m-air cargo along with just about everything else slid off the charts into an ever deepening black hole.
     Put another way, if you don’t think air cargo is in Dutch with the Duchess then you’re not paying attention.
     But when you think about it, right now is exactly the right time to get together, learn some things, network and rub elbows with opposite numbers and maybe even expand parameters to think out of the box while making some moves to knock off some new markets.
     Better late than never we say.
     Sure there will be those who say meetings such as WCS, CNS, Trans Logistic Munich and some others are better passed up for this year, but we respectfully disagree.
     Maybe it is the scale and expense that frightens in these tough times.
     Or maybe it is the trade shows themselves.
     Sure, some events are long on back patting and curious “awards”, and other such nonsense, and some, for our money, should be avoided like a plague.
     Perhaps the real problem is that we have grown somewhat complacent and are not looking around enough to discover what else is out there?
     For example, right here in Bangkok last September as business was going from bad to worse some airline claims managers, risk and insurance managers, freight forwarders, ground handlers, loss adjusters and aviation liability lawyers gathered to discuss the air cargo claims industry.
     The aforementioned group of world leaders in cargo claims may have arrived during an air of uncertainty, but from all reports they emerged from the two-day sessions with practical, workable solutions and best practices gathered and presented by IATA Cargo, which could then be shared by all.
     “This is the only industry conference of its kind which addresses the special needs of a very important, yet oft neglected part of the industry,” said IATA Head of Cargo Aleks Popovich.
     “The Thai Air Freight Forwarders' Association (TAFA) and Thai Cargo care (Thai Airways Cargo) lent their full support for this event.
     “Air Cargo Claims were examined from the airlines', forwarders' and the shippers' perspectives with solutions and recommendations from each of these stakeholders.
     Horst Billand and his wife Maren Mueller-Darheim of FTS-Freight Tracing Systems & Consulting presented their unique and very successful freight tracing service that has been saving thousands of dollars for airlines and insurers, while Chris Catto Smith of Cool Cargo Ltd. demonstrated how unbroken cold chain and good logistics practices can dramatically reduce damages and claims to fresh produces.
     “Their interesting cargo solutions can truly help ensure substantial savings and dramatically reduce costly air cargo claims payouts," said IATA’s Ajay Pande who headed up the cargo claims effort.
     “A very seasoned and experienced Claims Manager, Arjan van der Kraan of KLM-Air France revealed why a claims manager sometimes needs the skills of a detective and shared some very useful and practical tips and tricks of the trade which he had mastered over the years.
     “Joe Goodridge of Beaumont and Son Aviation at Clyde & Co opened everyone's eyes with his very illuminating presentation on "Fraud Involving Air Cargo Claims”.
     There was more, including John Edwards, IATA's Head of Cargo Security who is also at WCS ’09 Bangkok.
     Mr. Edwards advised all the delegates about the latest initiatives in the areas of Cargo Security and Loss Prevention and the challenges ahead of him and his team.
     We point to the IATA Cargo Claims Conference, to say that although the economic landscape may have people tied up in a knot right now, this is also a time when the advice and counsel and good ideas of others are most needed.
     It is everyone’s job to insist on quality content and presentations that deliver speakers and panel members with something to say.
Duke Ellington once said about musical tastes:
     “If it sounds good—it is good!”
     So too it is with quality presentations and discussions at industry events.
     When both are good, the quality can drive an extremely high level of interaction between event delegates, speakers and the panel members that in turn open up superb networking opportunities with other colleagues in the industry.
     As an industry we must demand better.
     Quality presentations such as at Cargo Claims or this week at WCS are benchmarks that need to be expanded and copied all over the place.
     Later this year IATA will conduct another Cargo Claims Conference on September 11 & 12 in Mexico City.
     But the message here is also that industry stakeholders should endeavor to unearth transportation and other conferences of depth, importance and unique common interest to maybe just attend as part of an effort to unlock new business.
     Maybe 2009 can be a year of discovery after all.
Geoffrey

Still Some Holes In TSA Screening

     So it has been about a month since TSA levied its 50% rule on all USA belly cargo and a world with other problems, though not yawning at air cargo’s concerns can be fairly described as being rather uninterested.
     Albert Saphir who heads up ABS Consultants, a leading USA based resource in these matters to companies all over the world notes:
     “I still see a lot of uncertainty and confusion amongst all the players, also questions, but no interruptions or serious delays as some had feared.
     “On the physical screening side, it seems that passenger airlines are doing the bulk of it - more and more at no charge as they are canceling the screening fees in order not to turn cargo away.
     “Also with the current declines in volumes, I have not heard of any bottlenecks.
     “Obviously shippers who changed their packaging in advance of the screening requirement are doing fine.”
     In a development some might have wished had gone in another direction some third-party TSA approved CCSFs are left with few options other than wait and see if business picks up because in truth there is not much screening activities for them anywhere near the windfall that was expected.
     Right now CCSFS hope that they did not make big investments for TSA approved screening equipment for nothing.
     It certainly has been more bust than boom some had projected. On the IAC side, the process varies considerably as well. Many are not charging yet for screening even if they have been already approved by TSA to do so. Others are trying to charge all customers everything and a bag of chips to see if they can get away with it.
     “Buyer beware," Albert Saphir advises.
     “Other IACs are idling their screening operations as there has not been much need or demand for them yet," he says.
     Mr. Saphir notes that questions surrounding the "authorization forms" that had come up a few weeks ago “are still unresolved as I have not yet seen an official announcement from TSA.
     “Shippers are trying to comply as best as they can, and IACs still have different approaches to this.
     “But we continue to find out more as new questions come up that shippers are looking to have answered.
     “Understand from IACs that they cannot provide confirmation to the shipper until the shipment is on its final leg, so how are consignees or shippers going to know where they freight is, if it is on-time etc.?
     “We certainly understand the security concerns, we need a safe passenger airline system.
     “But are we not turning back the clock too far?
     “So what are we going to do with these airline and IAC tracking and tracing systems?
     “Just disconnect them?
     “What use are they, if the information provided is not accurate or purposely delayed.
     “I am sure there are good answers to all of this.
     “But little is known, especially to the shippers who continue to be in the dark on several matters leading up to the 100% screening mandate next year.
     “We need everyone involved in this, the TSA, IAC, passenger airlines and their customers, the shippers, to get together and come up with good and safe practices and ensure that all are on the same page.
     “Otherwise, I do not foresee much future for air cargo on passenger airlines in the USA.”
     Also addressing another pressing issue Albert Saphir noted:
     “The TSA edict about concealing flight details that flies in the face of an expensive legacy system of track and trace allowing shippers to follow air cargo movement.
     “No one has a problem with flight details not being released to "unknown" (or casual) shippers, and this point has been made clear to the TSA by IACs, shippers and associations.
     “But there must be a legitimate method for IACs to release flight details to "known" shippers, those that have been vetted by the IAC and meet stringent TSA requirements.
     “Maybe passenger airlines need to get with the TSA as well to make their case, as we only are successful if all can play together fairly and safely.”
www.abs-consulting.net
Geoffrey

 

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