One thing to look for in Dallas this week is consideration by the Cargo Agency Conference (CAC) of Policy Item P-2 & Voting Item V-2, which is a new Global Model for the CASS Associate Program that could have a monumental impact on thousands of forwarders worldwide.

Background Of CASS

      When the airlines first thought to establish a billing and settlement platform for accredited forwarders (similar to the BSP already operating on the passenger side), they negotiated country by country with the recognized national forwarding association, to set the terms for the CASS implementation.
     Those terms included in part local financial criteria, financial reviews and security guarantees.
     There was also an understanding that the forwarder association would be informed by IATA of any change to how the CASS was administered that may effect the forwarder, and such changes would not be implemented without the association's agreement.

Moving Forward In Another Time

     These were the times when accredited forwarders enjoyed AD75 reduced travel privileges and received commissions on airfreight turnover, and therefore the vast majority of the cargo volumes were handled by accredited forwarders who assumed the responsibility to pay the carrier any monies due.
     Once CASS was implemented, the airlines realized how significantly their billing and settlement costs had been reduced.
     Through IATA they decided to offer the CASS billing and settlement platform to those forwarders/intermediaries, who for whatever reason did not participate in IATA's accreditation program.
     This was the CASS Associate program, which did not require setting any local financial criteria, financial reviews, or guarantees for applicants.
     That because the application was on a bi-lateral basis, requiring an airline to sponsor a forwarder, that sponsorship allowed the forwarder credit from its sponsor, and the billing and settlement process of the CASS. If the forwarder did not pay on time, the sponsoring airline had to take collection action, not the CASS.
     However, once in the program, and once provided with a CASS account number, other airlines desiring to do business with that CASS Associate, did not seek to establish a bi-lateral sponsorship, but simply offered the CASS Associate forwarders air waybill stock, and happily billed non-sponsored CASS Associates through the CASS system.

Fast Forward to 2018

     With less than 7,000 Accredited forwarders, versus over 4,000 CASS Associates, the growth and popularity of the CASS Associate program is evident.
     As their numbers grow, so does IATA's interest in applying stricter financial risk requirements on CASS Associates.
     The IATA CASS Policy Group is recommending adoption in Dallas, of a proposal which will effect all 4000+ CASS Associates, and in some countries could mean the imposition of 100% Industry Guarantee for all CASS Associates at all times, with minimum guarantee amounts generally ranging from US$ 5,000 to US$ 25,000.
     The actual amount of guarantee could be much higher, as it would need to cover up to 70 days, of a CASS Associate's average turnover.
     Also, there remain some significant countries such as China, Korea and Japan, where the minimum amount has yet to be determined, however IATA airlines in those countries have suggested that the minimum guarantee amount be equivalent to USD$ 189,000-USD$ 227,000 and USD$ 442,000 respectively.
     With the Cargo Agency Conference meeting only days away, perhaps the best CASS Associates can hope for is that those IATA member airlines participating in the vote, will take time to reflect on the nature of today's air cargo industry.
     One solution might be to remove this item from the agenda.
     The reality is that this is 2018 when often perception is everything.
     Perhaps IATA might consider that no association should allow its members to meet behind closed doors.
     It is certainly time for change, but we need forward thinking change.
     Being inclusionary needs to be the first rule here, we think.
Geoffrey

     Pictured is the beautiful National Exhibition Center (NEC) at Marston Green in Birmingham, England, where the 11th National Apprenticeship Week (NAW 2018) takes place from March 5-9, 2018.
      The theme for NAW 2018 is ‘Apprenticeships Work.’
      National Apprenticeship Week is met with enthusiastic support and involvement from BIFA, the British International Forwarders Association.
      BIFA is working to get the word out as the 2018 National Apprenticeship Week coincides with the launch of the industry’s new International Freight Forwarding apprenticeship.
      Tasked with helping to promote the new apprenticeship to both employers and young people, BIFA is creating a range of downloadable marketing materials for their members.
      The new assets include two information sheets entitled ‘Tips For hiring an Apprentice’ and ‘Tips for Attending Careers Days’ plus a ‘Careers in Freight Forwarding’ booklet which can be downloaded from the BIFA website.
More info: https://www.bifa.org/home
Geoffrey

Geoffrey’s Keynote
FIATA World Cargo Symposium
October 7, 2016
Dublin, Ireland

     FIATA and IATA are here—together again, but for the first time, and all of us saw that.
     What do you think?
     I want to share a thought from the writings of Kurt Vonnegut:
     “Please notice when you are happy, and exclaim or murmur or think at some point, 'If this isn't nice, I don't know what is.’”
     I would like to take this opportunity to offer my thanks to FIATA for my designation as a FIATA Fellow.
     The title is something I take very seriously and I only hope to continue to earn your trust.
     I think for anything to really work between airlines and forwarders, both entities need to never forget to respect each other.
     American stand-up comedian Rodney Dangerfield always began and ended his jokes with: “I get no respect.”
     “I told my wife the truth. I told her I was seeing a psychiatrist. Then she told me the truth: that she was seeing a psychiatrist, two plumbers, and a bartender.
     “I tell you I get no respect.
     “I told my psychiatrist that everyone hates me. He said I was being ridiculous - everyone hasn't met me yet.”
     It is my firm belief that mutual respect can drive cooperation in air cargo to untold heights.
     It is an integral part of a new working model that should be based on elevating dialogue between the factions of the air cargo industry.
     Respect should be a driver to IATA/FIATA when exploring future possibilities.
     How does one define success? Profits? Trust? Reliability? Innovation?
     One of the ways to measure these values is by the respect they command. It's About The Customer
     The central tenet of our collective endeavors must be the much-mentioned customer.
     That is the person for whom we all should have respect.
     For more than a decade in the B-to-C world, a few clicks on a computer, tablet, or smart phone brought a product to one’s doorstep with very little fuss. It's About Each Other
     We need to keep that in mind when we cling to “our” way of doing things.
     In order to achieve seamless service we should all have respect for one another’s needs and desires.
     The forwarder-carrier partnership must continue to mature and improve at a much faster pace than in the past in order to provide a truly streamlined service to the customer.
     Too many years of wasted debates and shadowboxing have been allowed to continue so that one side or the other could feel “in control.”
     The customer can only get what it needs and wants when a functionally integrated team of forwarders and carriers provide the service and stand together to fix problems or develop a new product.
     This has been done, can be done, and must be done.
     It takes understanding of the challenge and respect for roles and responsibilities.

Change At Warp Speed

     The visionary Tesla CEO Elon Musk is investing 6 billion U.S. dollars in a state-of-the-art battery factory.
     As leading edge as that is today, it will be obsolete in 15 to 20 years.
     When I think of air cargo, I believe that a new business model should be developed: a stagnating global economy combined with a seriously outdated system must eventually force fundamental change.
     Today we have an opportunity to rise above the existing norms and jointly work as an industry on developing a new paradigm of collaboration.
     The clarion calls of do or die have been sounded before and many have already paid the price for not heeding them.
     It is not easy, simple, or without enormous risk, but the “business as usual” approach carries even greater risks today.
     The best way we can move ahead and not stumble is by having respect for the past, but working for the future.
     It’s the old adage about history being doomed to repeat itself.
     It’s the famous James Baldwin line: “If you know whence you came, there are no limitations to where you can go.”

Learn From History

      Let’s learn from our history so we don’t make the same mistakes—let’s make new mistakes!      Learning from our history and each other will seed innovation and growth in our industries, and will prove fruitful and beneficial for both forwarders and airlines.
     In my mind, bringing the forwarder and airline people closer together is critical to the success of both.
     So let me congratulate FIATA and IATA for flying us into the future of air cargo through respectful and efficient collaboration.
     So with the memory of some younger days that included Pat Phelan and John Hartnett, who both served as General Manager Cargo for Aer Lingus, and my great, great grandmother Mary Doyle, we fly into the future with IATA and FIATA as the wings of our flying machine.
     And if you will allow, because growing up in New York City I heard these words often:
     “Get on your knees and thank God you’re still on your feet.”
     Thank you.