#INTHEAIREVERYWHERE

Jan Krems, president of United Cargo, is many things, but he is never—thankfully—at a loss for words when conducting an interview.
     Currently at the apex of his career, serving as a top air cargo executive in the “city of the big shoulders,” (as poet Carl Sandburg lovingly described Chicago), Krems has been dauntless in his efforts to lift and reverse the fortunes of UA Cargo for the past 18 months.
     All of this work has come at a cost; during the past year and a half Jan has not touched down anywhere long enough to leave a shadow—he seems to be everywhere in the world at once.
     Perhaps, Krems has cast a shadow after all—albeit with a much larger reach and more aptly from the air, like an enormous cloud covering the whole of a large city. His impact has been impressive, as he has effectively made the case for a new United Cargo, getting the UA troops lined up behind that new reality.
     Maybe it’s just sheer force of personality, or maybe it’s the luck of the draw and very good timing, but we think that is an oversimplification. People we talk to at United and elsewhere in air cargo genuinely like Jan’s open and inclusive management style, his sense of dedication, place, and humor, and his unwavering determination to do what it takes to put United Cargo up where it belongs.
     As Summer 2015 nears its close, Mr. Krems takes a deep breath and sits down to add things up, revealing himself to FlyingTypers exclusively.
     Typically, he delivers his overview in very few words.
     “United Cargo is on the right track,” Jan says softly, and he smiles.

Super Summer 2015

     “United Cargo had a very productive and successful first half of 2015.
     “Our first quarter was particularly strong, bolstered—as much of air cargo was—by the port strike.
     “Volumes continued to grow in the second quarter, though industry business conditions were not as favorable.
     “United’s latest financial report, issued a few days ago, reflected a 7 percent increase in United Cargo revenue on a 9 percent increase in cargo ton miles through June.
     “We are very gratified that customers have recognized our efforts and rewarded us with the #1 position in both cargo volume and revenue among U.S. passenger carriers.”


Improving Quality

     “What stands out for me are the quality improvements we are making worldwide.
     “Every time I meet with the Cargo team I deliver the message ‘Quality, quality, quality,’ because that’s the factor that makes the difference between being a ‘carrier by choice’ or a ‘carrier by accident.’
     “We’ve upgraded our quality in every facet of our business, but two areas are worth noting in particular: first, the gains in success rates, and efficiency of our operations processes.
     “We set some challenging targets for ourselves in key customer metrics—including shipments flown as planned and on-time availability at destination. “Our internal measures and IATA’s C2K statistics reflect the improvements we’ve made in these areas.
     “Second, we’ve enhanced the quality of our interpersonal connections with customers.
     “While many businesses are transitioning to the ‘electronic’ model—where you don’t see or even talk to another person—one-on-one human interaction is still a major element in the cargo industry.
     “With this as a focus, we’ve been able to develop our cooperation with strategic partners into strong, trusted business partner relationships.”

Strong Branding

     “The phrases ‘Business Friendly’ and ‘Cargo with Care’ define our new brand identity, and these phrases reflect who we want to be to our customers. “But these are only words unless the whole team keeps these precepts in mind when they’re connecting with or working for our customers. The feedback I’m getting says customers can feel the friendliness and care from United Cargo.”

Products Rising

     “Our TempControl product for pharmaceuticals and other temperature-sensitive commodities is a major success story this year. Last month we added Edinburgh, Montreal, and Toronto as certified TC cities, bringing the network total to 53 cities worldwide. We continue to expand and upgrade what’s available to our customers—from additional packaging alternatives to industry-leading leasing options.      All these enhancements come from asking customers “How can we help you succeed in the cool chain market?” then adding the best of their suggestions to our product offering.
     “An improvement customers identify as particularly valuable is our Control Tower for the planning and management of TempControl. With the ‘Tower’ approach, our highly trained team of specialists serves as the single point of contact, and manages all processes, data and communication, throughout the entire lifecycle of a TempControl shipment.”

United Cargo Complete

     “I’m also very excited about a new addition to our product suite: United Cargo Complete. Complete is designed to provide solutions for shipments that are more complex and challenging than usual—because of their size, origin or destination, commodity, or other conditions. We don’t enjoy saying ‘no’ to customers, and the great thing about Complete is it allows us to say ‘yes’ to customers we’ve had to turn away before.
     “Complete is a unique product among U.S. domestic carriers, and it expands the destinations we can serve and the types of freight we can carry. The best way to describe it is by saying, ‘If you have a shipment or a type of business you think United Cargo can’t handle, give us an opportunity to develop a solution.’ We want to offer ‘one-stop shopping’ for our customers.”

How We Are Doing

     “I won’t say we’ve reached our final goal, but I will say we’re moving forward and on the right path.
     “There’s been a noticeable improvement in getting the right people in the right jobs, the giving them the training and tools so they can maximize their talents. Also, we have broken down the silos so there is much better coordination between departments and disciplines. The quality of our data and how we use it, along with the accuracy of our forecasting, has taken a big leap forward.
     “We recognize we’re up against challenging industry conditions. Freighter aircraft that have been in the desert or in mothballs a long time due to the price of fuel are now back in the air. The key to surviving and thriving in this market is being flexible enough to adjust to changing conditions and being proactive in anticipating customers’ needs.
     “It’s a daily test of the determination, adaptability, and skill of everyone in the cargo organization.”

What Works Well At United

     “One thing that everyone is noticing—customers, members of other departments at United, and the team itself—is the positive spirit and energy that is flowing from the United Cargo team members.
     “Of course, we all wish the traffic-to-capacity ratio was different, but no one is wasting time complaining about it. Instead we’re focused on delivering the quality of service, both personal and operational, that will distinguish United Cargo as the best in the business.
     “That’s a target that can continue to inspire us no matter how circumstances may evolve in the future,” Jan Krems said.

Taking An Industry View

     “An issue I’m very interested in is the perception that too few bright, talented young people are choosing logistics as their career. This relates to another long-term industry concern: that we need to do a much better job utilizing advancements in technology at every step in our processes.
     “In my opinion, addressing one will help the other, because young people have the mindset that technology is a core component to any solution and the key question is the best way to use it. They’ve grown up with almost daily expansion in the power and usefulness of technical tools, and this belief in the possibility of a better way is what our industry needs.
     “It’s up to all of us to confront this issue directly whenever we have the chance. The message I try to deliver to this audience is that not only are there great opportunities to advance their career, but they can make an immediate difference because our industry needs and values what they have to offer.”


Growing The B787 Fleet

     “United currently has 18 Boeing 787s in our fleet with 37 more to be delivered.
     “From the cargo perspective, we are very pleased with the 787.
     “It’s unique size and weight has opened up new widebody markets and routes, or allowed us to continue to serve some markets and routes, that United could not have profitably served with other widebody aircraft. “Examples of this are San Francisco-Chengdu, Houston-Lagos, Los Angeles-Shanghai and Denver-Tokyo.
     ‘With the dynamic state of demand worldwide, we expect the 787 to provide many similar opportunities in the future,” Jan Krems insists.

Best Air Cargo Trade Shows Of 2015

     “Two trade shows stand out as the best in 2015, so far.

Pictured at Air Cargo Europe are Angel Ramirez, managing director cargo operations; Mirco A. Renfer, vice president Asia Pacific cargo; Jan Krems, president cargo; Helen Kristensen, managing director strategic accounts; Jacques Leijssenaar, vice president cargo sales EMEIA and David O. King, managing director of pricing, revenue management and sales strategy.

     “First, Air Cargo Europe – to me, it’s the most complete trade show because of the scope of international logistics disciplines in attendance.
     “Our team had an opportunity to network with customers and business partners from all over the world, plus we all learned something about other cargo-related businesses and trends that will impact the industry in the future.
     “Also, the CNS Partnership Conference was a highlight.
     “Credit for that goes to Warren Jones, who elevated the Conference to another level of value for participants through his infectious energy and personal touch.”

The Importance Of Family Time

     “Of course I am very proud of my wife and two sons.
     “One of the things I appreciate most is how they have kept a positive attitude and enthusiasm with every move we’ve made throughout the world.
     “I am grateful beyond words to my wife Manon, who has been with me for more than 27 years and has never complained – despite nine moves to eight different countries following my career.
     “Manon had a career of her own, which she chose to relinquish when we moved and the children arrived.
     “Another sacrifice for the family is the distance from our parents – my sons' grandparents – in Holland.
     “But we make sure we get back there at least once a year and they come to Chicago at least once a year.”

Does Jan Krems Ever Sleep?

     “Getting up early is a lifelong habit – statistics show that most people die in bed so I don’t like to lay around too long!
     “Also, with my current role and location there are definite benefits to starting the day early.
     “I drive to work, and the only way to beat Chicago’s rush hour traffic is hit the road before most people get up.
     “Plus, early morning is the most convenient time for communicating with many of our teams and customers in international locations.
     “My main source of relaxation is playing sports: platform tennis, golf and running.
     “My wife, two sons and I all love to travel, and we also like to discover places we haven’t been.
     “This year we will vacation in Turkey, and after that visit some of the Greek and Turkish islands.

City of the Big Shoulders

     “Chicago has a unique energy and spirit that you can only appreciate if you live here.
     “I love the atmosphere, the night life and the way the city supports its sports teams.
     “Over the years I’ve become a big Blackhawks fan, and I was fortunate to see the final game against Tampa this year at the United Center – an unforgettable experience.
     “Despite the weather and some of its other challenges, Chicago is my favorite city in the U.S.," Jan Krems said.
Geoffrey

Chicago skyline and inset photo—United Center, home of the Blackhawks.