Cargo Security Conference
A Winner

An alliance that makes it possible for everybody in air cargo to be compliant with 100% belly-cargo screening. From left to right, Thomas J. Long, Executive Vice President, Covenant Aviation Security; Gerry Berry, President, Covenant Aviation Security; Klaus Holler, Lufthansa Cargo Vice President The Americas; Harald Zielinski, Lufthansa Chief of Security & Environmental Management and Daniel Martel, Manager Key Accounts, Smiths Detection.

(New York Exclusive)—The main meeting room on the first floor at the newly refurbished Lufthansa landmark New York headquarters was packed to overflowing as the carrier held its second all-day Air Cargo Security Conference in East Meadow near JFK International Airport on Tuesday.
     Right from the get go it was made apparent that business as usual would not be the same as that date of August 2010 for 100% belly-cargo screening imposed by the U.S. moves ever closer to its start up.
     Just to bring the full impact of the new requirement into sharper focus and maybe to quell some impact of “where do we go from here,” Lufthansa started things by announcing an unusual partnership that if nothing else, holds open for industry stakeholders an apparent solution to meeting security mandates at once and long into the future.
At the conference, left to right—Debbie Geiger, Manager, export Compliance & Sea Freight Processes, Mid-America Overseas, Inc.; Klaus Jager, Corporate Operations Manger, EMO TRANS and Sven Frigger, Manager Corporate Compliance, EMO TRANS.

    “Our groundbreaking partnership provides low-cost, TSA-approved security solutions to air cargo shippers and freight forwarders, as Smiths Detection, Lufthansa Cargo and Covenant Aviation Security, LLC, will provide an all-in-one TSA-approved security solution for the freight forwarding, air cargo shipping and logistics industry in the United States,” said Klaus Holler, Vice President the Americas, Lufthansa Cargo.
     “With ongoing regulatory developments and other challenges in the United States, security has become the cornerstone of all business processes.”
     The new accord counts more than 4,000 employees combined operating from facilities strategically located throughout the U.S.
     The partnership will provide both large and small freight forwarders and shippers with an array of air cargo solutions.
     These services, which include ground handling, security screening and equipment, warehousing, training and transportation, will enable shippers and forwarders to meet TSA screening mandates.
     Mark Laustra, Vice President/GM of Homeland Security, Smiths Detection, said:
     “Smiths Detection is pleased to team with Lufthansa Cargo and Covenant.
     “We're excited to team up and offer our clients a simplified, turn-key solution to optimize their business from transportation and warehouse handling to security screening and related technological services.’
     Tom Long, Executive Vice President of Covenant Aviation Security, noted:
     "As a qualified security screening services contractor for the U.S. Department of Homeland Security’s Transportation Security Administration, we look forward to providing total security solutions for the protection of the nation's airways, travelers and supply chain.
     “Now shippers and forwarders have access to the end-to-end security solutions needed to meet the TSA’s mandate in a cost-effective, streamlined way.”
     The Lufthansa Security Conference was a jam-packed affair rolling out one speaker after another in a non-stop multi-houred effort.

Remembering Ed Kelly, TSA Head of Cargo Security.


     At the top as conferees gathered, Klaus Holler revealed the depth of cooperation and also professional respect amongst the airline and TSA (although often there are issues to be sure) offering a touching moment of silence for Ed Kelly, TSA Head of Cargo Security who died unexpectedly last year right after attending Air Cargo Americas.
     Later setting the table for the day’s agenda Klaus reached out to the gathering “in the spirit of moving the industry we all love into the 21st Century.”
     “The effort to get air cargo security right is number one priority right now,” Klaus Holler said.

Creating dialogue—Harald Zielinski and Jim LoBello, Head of Security The Americas. Lufthansa hosted an all day air cargo security encounter with industry stakeholders and TSA.     

     Harald Zielinski, Lufthansa Cargo Chief of Security & Environmental Management is someone who through sheer force of his determination and dedication toward security is acknowledged in many quarters as the foremost airline air cargo security expert in the world today.
     Harald noted that one of the key challenges to get air cargo security harmonized leading up to USA mandated 100% screening this August “is getting the many governments, both in Europe and everywhere else on the same page with their different requirements.
     “Security is a challenge but it is also a product, a cost of doing business that must be made efficient and effective to the benefit of everyone.
     “There is much to be done but my biggest target is for a harmonized security atmosphere around the world.”
     Mr. Zielinski noted:
     “While we realize a security surcharge we are seriously putting every effort to making the process better for our customers and colleagues.
     “But all of us need to get on the same page and to make sure everyone knows what to expect.
     “The need is made even more apparent, since at Lufthansa we carry half of all our air cargo aboard passenger aircraft.”
      Mr. Zielinski raised concern about what he described as ”low pay given to people involved in security”.
     “A key driver to an expanded and high quality security chain is keeping the best and the brightest security specialists amongst us by paying them better,” Harald said.
     “We have invested huge amounts of money in our people and equipment and we hope that others are doing the same thing,” Mr. Zielinski concluded.
     Vincent Henry Director/Professor, Homeland Security Management Institute Long Island University, who was also a first responder on 9/11 cautioned conferees that “the nature of terrorism has changed since the World Trade Center attacks."
     “Their goals remain the same but terrorists are refining and updating their processes on a daily basis.
     “Bin Laden is no longer the face of terrorism and terror is no longer a structured organization- but rather has moved into a diffuse franchise for the global Jihadi movement.
     “Security needs to be aware that the face of terrorism has also changed dramatically—into people who appear on a global basis as regular folks, who five years ago would never even have been profiled.
     “That’s why we cannot allow outdated security procedures. We need to continually refine and update our security practices.
     “Air cargo should not take a cookie cutter solution to security either but rather needs to take an approach that offers multiple layers that starts with who we hire and how we examine cargo moving outside and inside the airport environment.
     “Security needs to be protean and adaptable like our enemy.”
     TSA’s Doug Brittin put it on the line
     “There are 179 days left and 100% is 100%. Cargo not screened on August 1st, 2010 will not fly.”
     If that sounds like a fist—actually Mr. Brittin, part of the industry since Emery Air Freight, also said.
     “At the onset we were given limited equipment and we know that the 100% mandate is challenging to the air cargo environment.
     “One solution is our CCSP that now is empowering shippers to screen cargo, moving the ability for anybody to screen their own cargo prior to the airport in compliance to their own needs.
     Independent cargo screening facilities or the “car wash” approach has also worked.
     “TSA believes in shared responsibility,
     “We have learned and modified our approach updating qualifying equipment, adding technology.
     “When this started we did not know for example that you cannot X-Ray a skid full of watermelons, because nothing shows up.
 (Left to right)—Thomas Friedman, Branch Chief Indirect Air Carrier Programs Transportation Security Administration and Doug Brittin, Manager Air Cargo Programs, Transportation Security Administration    

     “We know that cargo screening is not like screening passenger baggage.
     “The different types of air cargo have special requirements and we are approaching each one with special attention.
     “There are plenty of options out there but the U.S. government will not defer the mandated deadline.”
     On the hot button topic of how will industry get to 100% on international inbound cargo?
     “A layered approach and also moving into risk targeting and other procedures is being utilized.
     “We are moving to harmonize with other countries.
     “The effort is time-consuming and in some respects U.S. lawmakers have objected but TSA is      convinced that standardizing procedures is the ultimate goal.
     “USA cargo should come talk to TSA and share ideas and offer suggestions as this inbound process continues.
     “As long as our efforts show progress toward getting on the same page we are hopeful to get the time needed to harmonize our efforts.”

Brandon Fried, Executive Director Airforwarders Association also saluted the late Ed Kelly saying:
     “Ed’s legacy is seen in the many fine people here today from TSA.
     “We did not always agree, but he was always a gentleman.
     That said, Fried warned conferees to “fasten your seatbelt—politics ahead.”
     Brandon should know, as someone who trolls the halls of Congress keeping up the interests of his 200-member association.
     “The next 50% mandated compliance is more like 300% in real terms to meet the challenge.
     “One thing for sure, we do not want government screening our cargo.
     “We are the experts—period.
     “That’s why we support CCSP.
     “At this time there is no machine that can screen ULDs.
     "This mandate is on the piece level, TSA only has about 104 unique shipper locations signed up for CCSP.
     “We think shippers have pretty well told us that they expect us to get the job done.”
     “So we are looking to form coalitions with other stakeholder groups to find some government funds so that air freight forwarders can get screening equipment and become CCSP.
     “Forwarders and others, I should add, would be well served to get out and explain and update their customers as August 1 approaches.
     “The objective is safe skies—air cargo was the loophole that is being closed by these regulations.
     “We just need to work together to get everyone on the same page.”
     Panalpina’s Vice President Area Security Manager, USA Charles Morton (right) brought the proposition that ran through this meeting, of past focus clashing with a flurry of drivers for change.
     “The heavy hand of the government will come down on you if you’re not compliant.
     “With all the duplication of effort going on In the world the wonder is how will air cargo pay for it?
     “I am seeing demands from our customers in our shipping orders saying: 'How will you screen my cargo?' Customers, while looking for rate reductions are also asking us to screen their cargo
     “As business picks up and volumes come back, it will put further pressure on the screening processes.
     “Impact is being felt industrywide.
     “Shippers need to be more involved in this process.
     “Liabilities up and down the cargo chain need to be thought out.
     “Shippers are scared to death. They come to us as their forwarders looking for answers.
     “One thing for certain, this is an entirely new air cargo business.
     “The reality is that more regulation is certain.
     “Panalpina, during one of the worst business cycles has committed to building a secure atmosphere but we wonder of the costs and increased demand from TSA, moving ahead.
     “One thing needed is open dialogue, preparing customers for what is coming and also surprisingly, for rules and regulations already in place.”
     Adam Salerno, Senior Manager, National Security and Emergency Preparedness, U.S. Chamber of Commerce (left) said that USC formed a global supply chain working group that reports need for greater transparency be given to impact of enhanced security.
     Speaking from the view of all the cargo disciplines, Mr. Salerno noted that in large part, politics drove demand for greater security in the post 9/11 atmosphere.
     “We have been pressing Congress to get money for cargo screening and the silence has been deafening although funds are plentiful for Sky Marshals and the like.
     “These huge bulk shipments cannot be screened—there is no technology in place.
     “The Trucking industry chain of custody is a huge issue.
     “We will have to meet the TSA deadlines because failure to comply can only further politicize the process.
     “We have to make sure the TSO’s not be allowed to take over the security process.
     “CCSP, that we support, is not perfect.
     “Audits should be done by TSA, not third-party providers. Cost should not be borne by the entire industry.”
     “I am excited for HR2200, a bill currently in the U.S. Congress that would allow for a risk based multi-layered approach to cargo security.”
     Speaking for airports, Carter Morris, Senior VP Transportation Security Policy, American Association of Airport Executives (right) lauding the Lufthansa Cargo Security Conference initiative as “unique” also said that air cargo should stay focused on compliance.
     “I am most worried about another incident aboard an aircraft.
     “We see TSA reauthorization by U.S. Senate will be a great opportunity to get the right programs enacted.”
Geoffrey Arend

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