Enough Pain All Around

     “Our nation's airlines are suffering from decreased passenger demand brought about by global travel bans and isolation orders, so they need as much support as possible to remain viable,” Mr Fried said.

Widespread Forwarder Layoffs

     Referring to the $25 billion U.S. Government bailout for major USA flag airlines, Mr. Fried said:
     “The U.S. Government financial aid program includes eligible support businesses such as maintenance and overhaul; and ticket agents will be sharing the money as well.
     “Cargo carriers will be receiving $4 billion.”

No Specific Provisions

     When asked, what about the hundreds of small-to-medium freight forwarder companies, the backbone of the air cargo industry, that get no government aid, Mr. Fried replied:
     “Aside from the broad-based Paycheck Protection Program and the Economic Injury Disaster Loan Program, there are no specific provisions in the financial relief package for the freight forwarding and affiliated express trucking community,” Mr. Fried said.

Pandemic Slashes Forwarder Revenue

     “The Airforwarders Association believes that while our airlines need support, so does the freight forwarding industry and its affiliates that depend on these carriers for their livelihoods as well.
     In a recent AfA member survey, 50% said that their revenues had dropped in excess of half and 65% said that employee layoffs were either imminent or underway.

Show Me The Money

     “Forwarders need the money,” Brandon declared, and we are going to help them obtain this crucial assistance.
     “Since the most recent small business relief package is only about $360 billion compared to the $14 trillion annual U.S. payroll, the allocated amount is likely to be consumed quickly.


Will Phase Five Deliver Relief?

     “We expect that Congress will hopefully pass a new phase five legislative initiative, so we are approaching Congressional representatives and Senate offices in expectation of this increased aid.
     Freight forwarders are an essential component of the supply chain, handling complex logistical challenges that assure the efficient and timely delivery of crucial medical supplies, pharmaceuticals, and perishable foods.”
     A top forwarder added, “but what also must be faced in this situation, is the reality that everyday people and government lawmakers, by and large, have little to no idea what a freight forwarder does.
     “It’s past time that the public be aware that without forwarders and brokers by the thousands all over the world who are mostly small-to-medium companies, the air cargo industry will grind to a halt.
     “Many of these companies are right on the edge without the deep pockets to sustain themselves during this total shut down.
     “Others are just gone and will never come back.”

Enough Pain All Around

     A realist, but still positive, Brandon Fried looks at the current landscape and notes:
     “Regrettably, those that focus on tradeshows, automotive, entertainment, and other industries shuttered by this unfortunate situation are suffering.
     “This situation is undoubtedly a challenging time, but there is a brighter future ahead,” Brandon concluded.

Forwarders Get No Respect

     The situation is no laughing matter, but when Brandon mentions “no specific help to freight forwarders,” but “a brighter future ahead,” a few minutes later, we think of Rodney Dangerfield and a speech we delivered in Dublin, Ireland in 2016 as Keynote at The FIATA World Congress.
     In 2020, it is way past time that our great freight forwarders get some respect.
Geoffrey

     As the COVID-19 Pandemic continues to take hold in India, the major cause of worry that air freight forwarders have been facing—in the 21-day lockdown that India is going through—are the conflicting directives from authorities and regulators.
     One challenge is payment of handling charges through IATA’s Cargo Account Settlement System (CASS) to international carriers bringing or taking goods from India.
     Sunil Arora, President of the Air Cargo Agents Association of India (ACAAI), speaking to FlyingTypers pointed out that more than 500 IATA-authorized forwarders would not be able to pay the cargo handling charges to the carriers if they were not given an extension.

India In CASS Pandemic Throwdown

     The payments were due on April 1, and IATA has only given an extension of nine days until April 9. The extension time of nine days, said Arora, was not enough with the lockdown.
     He said that the forwarders were not in a position to pay up the airlines according to the CASS calendar.

Need More Time

     “We will start making the payment as per each due fortnight after 21 days, once the lockdown is withdrawn,” he said.
     According to ACAAI, around USD$2billion is sent through CASS every year.

Almost No One Paying

     Almost all export/import units, along with export promotion zones have not been functioning.
     To add to the forwarders’ woes, clients have delayed payments.
     So Arora has sent a letter to IATA India asking for more time.
     “We request you to immediately advise IATA CASS to give 21 days’ additional grace period from the due date of all the fortnightly CASS payments from March 16, for all ACAAI members, until the Covid-19 crisis is brought under control,” the letter to IATA states.

Enlightened No Fault-Default Needed

     Forwarders receive an ‘irregularity notice’ if they do not pay in within the allotted time.
     And if a forwarder receives three ‘irregularity notices’, he is declared a defaulter with CASS and international carriers often refuse to work with the forwarder again.
     Speaking to FT, Arora said that he was not looking for a waiver.
     He emphasized that he was only seeking an “extension of the date, considering that our members are facing difficulty in getting payments from clients.”
     In fact, ACAAI has taken the case to the Prime Minister’s Office hoping that the intervention from the top would help IATA make up its mind and give an extension.

IATA Stands Its Ground

     For its part, IATA has said that banks were not part of the lockdown and since the payments had to be done electronically, the date would not be changed from April 9.      IATA pointed out that it would do “what we can to avoid agents being penalized for failure to comply with the reporting and remittance obligations under their Cargo Agency Agreement in view of the force majeure situation in the country and around the world.”

Congestion & Social Distancing

     As if that were not enough, the country’s air cargo stakeholders have demanded 100 percent waiver of all demurrage charges at all airports.
     With the lockdown in progress and acute shortage of labor, cargo, both import and export, is stuck inside the terminals.
     Almost all airports have reported congestion in the terminals with the Mumbai terminal suffering the most.
     Air cargo stakeholders point to the Ministry of Civil Aviation order of April 1, 2020, that allowed a waiver of 50 percent of demurrage charges levied by airports until April 15.
     However, the order had conditions, confusing forwarders and other stakeholders.
Tirthankar Ghosh