Security Tops German Club Agenda

     Air Cargo Club Germany situate in Frankfurt since TWA and Pan Am served European gateways with all-cargo B707s just completed its 42nd year in existence. Traditionally the September meeting has always been something special.
     We recall the meeting here four years ago during this time was more like a dirge as the Club was gathering just as the unthinkable happened on 9/11 /2001.
     But this year on September 11th, tradition and form got together and the board welcomed a lively group of members and guests back to business after the traditional summer recess.
     Headlining the agenda was a subject that attracted key actors from all of the participating arts in the air cargo transportation chain.
     A deep-dish trip through new European and German laws, regulations and rules pertaining to “Safety and Security in Flying,” headlined the first meeting of the new ACD season.
     Three experts from different German institutions including a university professor delivered short speeches.
     We regret to report that these well-intentioned speeches sounded like they were being delivered from another planet with little connection to what most air cargo people know is the daily operational reality in warehouses and on tarmacs.
     A new security law is to be implemented here on December 1, 2005, but most people are unclear as to what the new procedures will include, despite many papers on the subject.
     What is known for certain is that old bits and procedural pieces are integrated in the new rules.
     For example the “known shipper” mandates will continue mostly unchanged.
     But many features of the new security regulation will cost time and money and new labor in order to administrate.
     Adding bureaucracy is a most revered and long-held German tradition.
     But to add on labor in an air cargo market that sometimes delivers more revenue in fuel surcharges than base rates, can be dangerous.
     The ACD professional air cargo audience of over 100 learned that an organization called TÜV-Nord operates an academy and a respective competence team on “airfreight, courier- and express services safety and security.”
     Most people in Germany already knew that the TÜV is an institution that was created once upon a time with the mission of checking and inspecting technical equipment in Germany to certify safety.
     As example every automobile registered in Germany must be inspected by “TÜV” every second year as a requirement to be road-worthy.
     TUV is not a government institution, but TUV acts to enforce laws.
     So now TÜV Nord Academy will be involved in German air cargo to train people to become expert security representatives.
     The trained people will then be permanent fixtures at airlines, forwarders, integrators and regular shippers in Germany.
     The caveat is that a redundancy will have to be created at every company in the form of a deputy – in case the point security type has a cold, or is away on duty travel or vacation.
     Again up pops a good example of the German love for bureaucracy.
     In a tight business climate, two for the price of two when no one is quite sure what it is that one that most cannot afford, will do, is about to be the new order of the day.
     The second speaker is from Luftfahrt Bundesamt (German equivalent of U.S. FAA).
     The professor from the Berlin Technical University tries to lead the ACD membership through a dense verbal jungle of legislative mandates.
     It is an immense challenge for air cargo to cope with these new laws, but maybe even tougher to stay awake during a well intentioned, albeit techno-legislative speech heavier than the goulash.
     Somebody says that there is no way that the new rules are going to be in effect and followed in detail by December 1, 2005.
     Many murmur agreement at that comment.
     Somebody else notes that the respective control manuals have not even been drafted yet.
     There is a mild rippling of laughter about the room.
     An example of the challenge to tighten up procedural security is brought forth in the form of talking about a single consignment moving through the system.
     In Germany there are17 international airports handling cargo, express and mail.
     More than 130 airlines sell and move airfreight – mostly through 90 sales agents and a large number of handling agents.
     Some 250 IATA-agents with maybe 800 operational locations are charged with delivering cargo “ready for carriage” to their respective receiving point.
     A high percentage of all shipments are loaded and unloaded from trucks.
     Someone wonders aloud how many hands are touching this one random consignment before it is airborne?
     So it is not without a bit of scepticism that the working air cargo industry in Germany views officials creating a paper trail to cover the legal aspects of security, while implementation remains with drivers and warehouse agents and others.
     Elsewhere ACD attendees this fine early Autumn September afternoon are told that Boeing Aircraft confirmed earlier for a presentation on October 11th may not show up because of a conflict that is interpreted maybe as that nasty strike taking place at the manufacturer.
     After the laborious security demonstration a wait and see mood about future speakers and security became part of the mosaic here.
     November might offer a real highlight in this year’s ACD agenda.
     The quickly developing automotive spares, components and accessories consignment business moving by air cargo, will be discussed by Dominik Tickelkamp, managing director of the Volkswagen AG in-house logistics company on November 8.
     The ACD December meeting, by tradition, belongs to the national carrier, Lufthansa Cargo.
     General consensus is that everyone is looking forward to hearing how the airline is managing to cope with the scissors of exploding capacities and costs, and ever shrinking yields.
     But back to September for a moment:
     In the spirit of the best for last, Prof. Dr. Manfred Schoelch, deputy chairman of the board of Frankfurt airport operator Fraport AG, stands up and asks the assemblage to consider him for membership in the Aircargo Club Germany.
     He has been a guest often, even a guest speaker at times.
     Dr. Schoelch states in his short address that he has always been close to cargo—a fact visible throughout the cargo facilities here.
     ACD is tradition, humor, fellowship and business.
     A great club with a proud history and a constant record of service, not unlike, we imagine other air-minded organizations from JFK to Timbuktu.
     It’s good to be back.
(Günter Mosler)

SWISS Jets Jetzer To Top Post

The new SWISS Board of Directors has elected Rolf Jetzer as its Chairman. It also elected Walter Bosch to serve as Deputy Chairman.
Five news members of the new SWISS Board of Directors were elected - each for an ordinary term of office of three years including the aforementioned and Jacques Aigrain, Wolfgang Mayrhuber and Klaus G. Schlede.
"Achieving sustainable profitability and integrating SWISS into the Lufthansa Group will be the prime focuses of our new Board's activities," said Rolf Jetzer

Kuehne + Nagel opened a new logistics center at Vantaa International Airport in Helsinki, Finland. The multifunctional facility offers 6,000 pallet positions and 7,000 square meters of warehouse space that can be expanded by an additional 6,000 square meters later said Markus Nyman, CEO of OY Kuehne + Nagel Ltd. “In addition to our traditional forwarding business, the new logistics centre in Vantaa enables us to provide warehousing and distribution services, thereby increasing added value for our customers.”

FedEx Profits Despite Soaring Fuel, Katrina

FedEx Corp. net income for the fiscal first quarter ended Aug. 31 rose 3% to $339 million from $330 million on a 10% increase in revenue to $7.71 billion despite a 51% jump in fuel expense. "Results in the quarter were solid but earnings were negatively impacted by an accounting charge," said Executive VP and CFO Alan Graf Jr., adding that "Hurricane Katrina had no significant effect on first-quarter results," although some FedEx facilities in the region were damaged.