Winston Churchill said of Franklin Roosevelt that “meeting him was like uncorking your first bottle of champagne,” which is exactly what it felt like to us recently when we sat down and talked to Jan Krems, President of United Cargo.
     Face to face, Jan comes across as a broad thinker and a brilliant air cargo mind. But he also seems a very approachable guy who knows how to both motivate people and thinking, and have some fun as well.
     Born in the Netherlands, Jan worked his way into the air cargo industry starting at the bottom at KLM, rising up the ladder to the point where, just prior to arrival in the Willis Center Chicago, home of United Airlines, he headed up the fortunes of KLM/Air France Cargo USA, a $400+ million dollar business.
     Today, as top executive at United Cargo, which generates better than a billion dollars a year, Jan makes no secret that he landed the job of a lifetime and is enjoying every moment and challenge.
     “I think cargo is very sexy,” Jan says with a smile.
     We are thinking the last time we heard that description about this business, we were talking to Dr. Andreas Otto at Lufthansa—the same Otto who is now leading Austrian Airlines in Vienna.
     “The opportunity to get on the phone or internet with people and fill up empty cargo holds to maximize our network of 5,000 daily flights is instantly gratifying and very sexy indeed,” Mr. Krems said.

United Surprises

     “Coming over from more than three decades at KLM and SkyTeam I discovered that I didn’t know United that well.
     “What I had heard in the market about UA was connected to low rates.
     “The surprise when I got here was just how good United people are, although focus was a bit internalized.
     “Outsourcing was an issue, UC360 had its problems, integrating two airlines into one raised challenges, and things were, to put it plainly, a bit unsettled here.
     “I came at the right time and maybe it was not me, but the need for change and the readiness for change was there. So as it turned out my arrival was the right place at the right time.
     “I certainly learned I could do more than I thought I could do,” Jan said.

Key Resources Moving Ahead

     “What I like very much right now is the customer focus at United.
     “Today United Cargo is focused more than ever on its customer base, which is our bread and butter.
     “Motivating our people to concentrate on our customers’ needs guarantees our success today and tomorrow.
     “On an airline basis, we know that cargo is a small part of the overall throughput of the company, but our margins can be quite impressive.
     “So, cargo is being heard within United.
     “Me and my big mouth will make sure our growing cargo business resonates up and down hallways and wherever this airline flies; cargo is a positive story, so we want to spread the word at United.
     “We have the right people, the right equipment, and the right schedule of flights all over the world—plus the attitude to make it all work.
     “Today at United Cargo we think our glass is always full, never half, and we look forward and operate from that perspective.”

Quality, Quality, Quality

     “Something I repeat to the team again and again: ‘quality, quality, quality, it’s the only thing that counts.’
     “If we perform better than our competitors, the business comes to us.
     “We had some well-reported problems related to many factors, including the amount of outsourcing that was done.
     “When I first joined United in the summer of 2014 there was already a plan in place to set things right, so we continued to implement that plan, bringing in the right people dedicated to achieve operational excellence.
     “I think sustainability must begin at the base level at all 378 destinations we serve, then we build from that point forward.
     “The process of getting this right does not happen overnight, but the direction and goal is set and our performance gets better every day.
     “As an example, we are reducing the number of handling service partners and sales partners we work with, and we’re ensuring that the same training and procedures are developed and maintained for all our products so our customers can benefit from a consistent experience.
     “We want to build a better, more streamlined working relationship with everyone in a very large global organization. We can only achieve that if, rather than thinking in silos, people begin moving more toward community thinking.
     “Getting commercial people, operational folks, customer service, and others together on a bi-weekly basis is key to building a consensus on how to address issues and drive excellence.
     “We also get together at various locations every quarter to review what’s been done and introduce new plans, and of course to gather feedback from the global team.

     “Also, our leadership team regularly meets with regional leadership and we honestly analyze every aspect of our business.
     “It’s all about transparency and consistent understanding up and down the line, focused on where we are, where we are going, and what is expected from each contributor.
     “Partnerships are especially of interest as new situations always bring concern about ‘how does this affect me?’
     “We address that subject, along with many other topics, with our regular worldwide calls.”

On Travel Building Air Cargo

     “It is really nice to have our headquarters in downtown Chicago at Willis Tower.
     “But the business and the money is made outside Willis.
     “That is why I travel so much.
     “It’s important to be as close as possible to the customers, of course, but I also need to connect with our own people. It reinforces the fact that everyone involved plays a big part in the future of United Cargo.”

Look Out For Number One

     “I worked 27 years at KLM and I often said there, and in many other places since, that air cargo is a people business first, last, and always.
     It’s amazing, but as fast as things change all around us, some basic truths about air cargo haven’t budged a bit since the beginnings of the industry in the post-World War II time frame.
     “Even today, you land the business 60 to 70 percent of the time because people like to work with you.
     “The other 30 to 40 percent is based on quality, technology and systems, and schedules.
     “So we make sure that we are in front of the customer as much as possible, and also that our quality is maintained.
     “It’s one thing to promise added value, but first you must build the base.
     “That work was underway when I joined United, and we have carried that plan forward, reinforced that philosophy, and built on that foundation.
     “Today United Cargo is the number one air cargo carrier in the Americas.
     “That’s good, but not enough,” Jan smiles. “We know we can grow more and be a more valuable cargo resource for our customers.
     “For example, looking at our KPIs, at the IATA C2K figures, we’re doing well versus our U.S. competitors. But comparing United Cargo with some European and Asian carriers shows there is plenty of room for us to grow and improve.
     “I think every day we take another small step in that direction.”

On October 15, 2015, United Cargo was honored with the Customer Choice Belly Carrier of the Year award at the annual Payload Asia Awards ceremony held in Singapore.    Cargo Team members Hazel Ip, senior regional sales manager, South Pacific (Hazel is holding the award), and Lynda Lim, cargo sales manager, Singapore, are seen receiving the award from presenter Glyn Hughes, global head of cargo for IATA.

Cannot Mail It In

     “Yesterday I spoke to a half dozen of our biggest customers and my first question was, as it always is:
     “‘How is our quality doing?’
     “Basically the response was ‘You are not a top concern for us.’
     “‘United Cargo quality is good, it is steadily improving, and we don’t see issues,’ was the reply.”

Looking Ahead

     “While quality will always be our top priority, ‘added value’ marks the road ahead for United Cargo and holds great potential and promise for our offering.
     “Global cargo capacity is growing at about 6 percent right now, while GDP increases are at 1 to 2 percent.
     With cheaper kero, available freighters are coming out of mothballs, adding a lot of capacity, and creating a situation that demands we play to our strengths.
     “United has made a lot of enhancements toward providing a better service for pharmaceuticals, with new packaging and leasing options and our Control Tower service, and we’re making similar strides with other added value commodities.
     “But the essential ingredient remains our management of processes from booking to billing.
     “Both our front and back office staffs stay close to our customers, building connections, emphasizing how we can develop the relationship to contribute to the customers’ success—this is a main driver at the 24/7 Customer Contact Centers we operate in Houston and Manila.
     “We are developing and expanding capabilities in customer service that will deliver even more transparency to our service partners and ourselves as we move forward,” Jan Krems said.

Staying The Course

     There is no question that Jan Krems stands tall amongst the small handful of top air cargo leaders in the world.
     But we are happy to report that love for what he does drives this guy to take to new heights the opportunity he describes as his “best and last job in air cargo.”
     During our conversation Jan brings out his cell phone with a picture of some dogs he has rescued, which are now living in his home north of Chicago with his wife, kids, and parents visiting from Holland.
     In the photo, Jan is fast asleep on the floor with the dogs lined up comfy on the couch.
     While we are drinking in this rather comical scene, Jan is talking a mile a minute about the United program “PetSafe,” and what a truly great and industry-leading service PetSafe is.
     But the picture conveys the reality; here is someone who truly loves animals and brings that love to a service his company provides around the world.


     Later, as we board our aircraft back to New York, we spot some PetSafe containers moving about the hardstand for another flight and I wonder for a nanosecond if we might trade our seats upstairs for a ride with the dogs under the passenger cabin.
     Then I realize what is happening—post interview, we are still living in the moment, carrying on in the Jan Krems glow.
     This guy could sell ice to the Eskimos.
     It’s about his enthusiasm, but also his ability to lead and motivate. That is who Jan Krems is in air cargo today.

So Simple It’s Stupid

     “I believe we have the right people at United Cargo, so it’s our job as leaders to provide vision and motivation.
     “We must always keep our promises, not only to our customers, but to each other.
     “This means committing to what our team believes it can deliver, then providing the team the tools and training that will enable their success."
     “Our goal is to be nothing less than the best in the industry, and the only way to get there is one step at a time.
     “Every time we listen to a customer and meet their needs, every time we deliver a shipment flawlessly as committed, every time we implement a co-worker’s idea for a better process, we move a little closer to our goal.
     “One month, six months, one year from now, I expect all those little steps to bring United Cargo to amazing success.”
     Pretty sexy, after all.
Geoffrey