Vol. 10  No. 6                                                   WE COVER THE WORLD                                 Monday January 24, 2011


Steen Pilots Change At TIACA

     Call it a Monday surprise or a blockbuster step to a new beginning – at long last, an air cargo organization steps up to the plate for real change.
     The International Air Cargo Association (TIACA) will officially name Michael Steen its new Chairman next week (January 24), a move viewed in many circles as a signal that TIACA will further widen its involvement in all aspects of air cargo, especially as it comes fresh on the heels of an upbeat Air Cargo Forum in Amsterdam last November.
     No doubt, for TIACA business as usual will be unusual from now on.
     The revelation behind this dramatic news is a concentrated wake–up call by industry stakeholders to finally get involved for change, as air cargo industry trade organizations and collateral trade show effectiveness become further blurred amidst the plethora of opportunities and events conducted every year.
     Michael Steen, who also serves as Executive Vice President and Chief Commercial Officer at Atlas Air World Holdings, leaves little doubt the organization is out to make a difference.
     As further indication that it means business, TIACA has also announced Oliver Evans, (right) Chief Cargo Officer at Swiss International Air Lines and Jason Foote, (left) VP International Air Operations, UPS Airlines, as new board members.
     All of the aforementioned are top industry executives leading successful, highly charged businesses.
     The possibility seems remote that any of these gentlemen will suffer fools or are out to waste their valuable time.
     To his credit, Steens’s first order of business is to praise his predecessor, Uli Ogiermann.
     Mr. Ogiermann did nothing but good things for TIACA.
     He brought the organization back to AMS last year and ATL in 2012 after some really lousy trade show venues.
     But beyond that, he inspired the TIACA Board and membership into the kind of cooperative action air cargo needs to really work in the century ahead.
     Now snagged up in the ongoing price-fixing uproar, reportedly with the support of Cargolux, Uli finds out here that Michael Steen and others in air cargo are grateful.
     “Uli Ogiermann has done an outstanding job during his tenure as Chairman of TIACA by developing the organization into a leading industry platform with a strong focus on the most pressing industry topics.
     “He has been instrumental in forging closer relationships with several industry organizations, work which we now will continue to build on for the future,” said Michael Steen.
     “On behalf of TIACA’s Board of Directors, I would like to thank Uli for his outstanding contribution and we wish him the very best in his future endeavors.”
     Read that as saying that air cargo people everywhere hope that Uli Ogiermann, a straight shooter if there ever was one, comes out OK.
     Looking ahead, Michael Steen notes:
     “The new formation and success of the Global Air Cargo Advisory Group (GACAG) together with IATA, FIATA and the Global Shippers Forum will be a large part of TIACA’s focus in 2011.
     “The group will jointly address key issues such as security, global trade facilitation, e-freight and overall industry standards.
     “We will also intensify our industry affairs activities within TIACA itself.
     “I am also delighted to report that through excellent work by TIACA’s education and research committee, we will launch an air cargo education and development program in close collaboration with the Federation of East African Freight Forwarders Association, which will be kicked off in Nairobi, Kenya in early 2011.
     “The organization had a great year in 2010 and delivered good results in many areas: first of all, we had good interactions with lawmakers both in the United States and in the EU, crowned by a meeting between our chairman Uli Ogiermann and EU Commissioner for Transport, Mr. Kallas, with a focused dialogue regarding the need for close collaboration regarding decisions concerning international trade and security which could impact the air cargo industry.
     “It was decided that TIACA would provide data continuously to Mr. Kallas to ensure that lawmakers gets an accurate industry perspective.
     “TIACA also launched the ‘air logistics network,’ which provides TIACA’s members with a reference center, offering useful links and information regarding practical regulatory and commercial reference tools.
     “TIACA’s overall membership expanded and I am happy to note that we saw good growth in the freight forwarder and shipper segments as well as increased membership in the Asia Pacific region.
     “The excellent Air Cargo Forum in Amsterdam featured great attendance (reportedly 3,300) and a very well coordinated event in good collaboration between the Dutch organizing committee and TIACA’s event committee.
     “But no doubt our major challenge is clearly to continue to deliver value to our members through good collaboration with the ‘GACAG’ as well as through our various committees.
     TIACA’s continued efforts in ensuring that security regulations are addressed with a focus on what’s best for air cargo and commerce in general is obviously on top of our agenda for 2011.
     “Through our newly formed collaboration with IATA, FIATA and the GSF, the organization will obviously attend the IATA forum in Turkey as well as FIATA’s upcoming events in order to address its membership on key industry matters.
     “But perhaps more importantly, TIACA will continue its participation in various political forums both on Capitol Hill as well as in Brussels, and collaborate closely with global trade organizations as well as the global customs organization.”
     We wonder which segment of TIACA's vast operations is performing best and which holds the most promise?
     “I think that it is fair to say that TIACA has positioned itself as a platform for industry collaboration where key issues are addressed, with a strong focus on making our great industry even better!”


Emirates Expanding Markets

     “We will continue to enhance our global distribution network,” says Ram Menen, Senior VP Cargo at Emirates.
     “As usual in the previous years, we will continue to expand our capacity and network and work on having the right capacity at the right place for our customers.
     “Emirates SkyCargo is currently working on setting up our operations in Basra and Geneva.
     “We are quite optimistic that after a bit of a lull in the cargo market during the last quarter of 2010, the air cargo market will gradually start picking up post-Chinese New Year.
     “I expect this year also to be that of positive growth.
     “In case of a low growth scenario, we would probably look at 4-6 percent growth and in a good case, about 7-9 percent growth in the overall world air cargo movement.
     “Either way, it is going to be positive.
     “Capacity deployed is likely to be more balanced with the demand.
     “We will be inducting two more brand new B777Fs during our next fiscal year.
     “High growth markets are likely to be India/Latin America/Pacific-rim, Cambodia, Vietnam etc. We are also likely to see the U.S. exports coming back.
     “China will continue to grow, however, it could be a bit slower than what we have seen in the past.
     “At Emirates SkyCargo, we are excited about the e-AWB and e-Freight initiatives that will enhance overall efficiencies in our business as well as add better ability to maintain secure operations by being able to provide information proactively to the border control and security agencies well in advance for profiling and clearance.
     “We had quite a good year where we have been ahead of the game.
     “Our first half fiscal year results show a growth of 23.7 percent in volumes.
     “Our network continued to expand with destinations like Amsterdam, Prague, Dakar, Tokyo and a few others coming on line, as well as increase in frequencies to places like Houston and Los Angeles doing double daily non-stop passenger operations.
     “We also introduced twice-weekly freighter services to Viracopos (Sao Paolo), once weekly to Almaty and once weekly to Bagram.
     “We had to deal with and manage a few security related challenges.
     “SkyCargo also had quite a lot of success with our e-Freight related initiatives.
     “On the industry from the Amsterdam Agreement, which formed the industry advisory group consisting of IATA, FIATA and the Global Shipper’s Forum (GSF) facilitated by TIACA, now under the banner of Global Air Cargo Advisory Group (GACAG) is a truly remarkable achievement and will go a long way in shaping the future of our industry.
     “As to key appointments here at Emirates—we pretty much have the same team going forward.
     “The only new addition to our management team in Dubai is Claus Nickel, who moved from being our Cargo Operation Manager in Germany to take over as our Cargo Product Development Manager.
     “We do, however, miss Peter Sedgley, (right) who retired last year.
     “The biggest challenge remains that of security related issues where the requirements tend to change at very short notice. The other challenge is that of changing the mindset and for the industry to wring in the changes that will make commerce more efficient.
     “The Trade shows we are looking at are Air Cargo Africa, Intermodal South America in Sao Paolo and Intermodal In Munich.
     “The fastest growing segment of our business is time sensitive cargo and, within that, Pharmaceuticals.


Boesch Straight
From The Shoulder

     When it comes to putting out the unvarnished truth, count on long time air cargo executive, Bill Boesch.
     Although he retired as President of AA Cargo a dozen years ago, Bill has since created a splendid record teaching logistics to the military in Iraq and Afghanistan, an effort that earned him the distinguished U.S. Medal of Freedom.
     Here is Bill’s take on what lies ahead.
     “I think the economy will continue to rebound, but government pressures will increase on security and scrutiny of any rate increases.
     “Carriers that depended on USG dollars as their mainstay of the business will start to feel the pressure of USG budget cuts.
     “Last year, 2010, was a year that started the recovery process, with security the top priority going away.
     “When you talk about the most important people on the planet in air cargo right now, list Ram Mennen for the strategic use of freighters with passenger bellies and David Brooks for cargo support of a passenger carrier.
     “Looking ahead, security and government regulations will challenge air cargo.
     “Right now the movement of military cargo by CRAF carriers is going well, but with the end of the conflicts in sight tied to budget cuts, I believe this part of the industry will face economic pressures.
     “The most promising part of the industry is the express business, as it appeals to the mass market and may not face the pressure of lowering rates that I believe will pressure the other segments of the industry.”


Poem For Air Cargo Employees


Last night as I lay sleeping,
I died .. or so it seemed,
Then I went to heaven
But only in my dream

I was greeted by St. Peter
Standing at the Pearly Gates.
He said, 'I must check your record...
Please stand right here and wait.'

He turned and said 'Your record
Is covered with terrible flaws,
On earth I see you rallied
For every losing cause.

'I see that you drank alcohol
And smoked and partied too,
Fact is, you've done everything
A good person should not do.

'We can't have people like you here...
Your life was full of sin.'
Then he read the last line of my record,
Took my hand and said, 'Come in.'

He led me to the Lord and said,
'We'll take him and treat him well,
He used to work for in air cargo...
He's done his time in hell.'



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