Vol. 9 No. 31                                                            WE COVER THE WORLD                                                       Friday March 5, 2010

      Following a well-attended and content-rich Lufthansa Security Conference in East Meadow New York February 2 another event played in Frankfurt, Thursday March 4 once again focused squarely on dealing with mounting security requirements as 250 experts from the aviation industry, science and government gathered to talk things over.
     The meetings are just in time.
     The all-day sessions brought forward some of the best & brightest minds in the business to discuss and share information leading up to the U.S. TSA mandated 100% total air cargo screening slated to begin (ready or not) in August 2010.
     Lest anyone wonder why Lufthansa Cargo is so far out in front of the security issue, Karl-Heinz Köpfle, Board Member Operations at Lufthansa Cargo
Security puts it square on the line:
     “Security is a topmost priority at Lufthansa Cargo.
     “There is no place for compromise.
     “We have invested immense resources in technology and training so as to offer customers even higher security standards, coupled with fast and cost- efficient processes.
     “At the same time, Köpfle also emphasizes that the tightening of security regulations must bring real gains in security:
     “It is pointless for us to incur additional expenditure from new security measures, if they are not thought through or not at all necessary because they fail to effect any objective improvement in security.
     “That is not in our interest.”
     Harald Zielinski, (left) head of security at Lufthansa Cargo, underscores the urgent need for harmonizing security rules in the airfreight industry:
     “There is no reason why the USA should not accept the high security standards that we offer in Germany.
     “There simply cannot be a separate but unequal approach to air cargo security,” he says.
     “The industry needs to act together with governments and shippers and other interested parties to create a security system benchmarked in workable procedures.
     “But as the security threat increases, we must be prepared to admit as an industry that nothing is impossible.
     “We need to harmonize our efforts to get security right while advancing technologies that offer both added value to the process and safeguards for everyone who flies.”
     “Lufthansa Cargo is about ramping up security at an unprecedented level in advance and in accordance with various governmental mandated edicts while driving the debate toward better understanding all around,” Mr. Zielinski said.
Geoffrey Arend

Raising Security As Costs Surge

     Air freight is becoming more expensive and bureaucratic due to an avalanche of regulations, rules, and demands imposed by governments and legislative bodies on the industry mainly in the U.S. and Europe.
Executive board member Karl-Heinz Köpfle of Lufthansa Cargo at his carrier’s Thursday-held cargo security conference in Frankfurt, Germany confirmed saying:
     "As a consequence of steadily increasing expenditures we have to review our security surcharge," emphasized the manager in his initial address to the 280 participants of the one day meeting. Currently, LH Cargo charges 0.17 euros per kg actual weight.
     Obviously this is not enough to cover the fast rising costs.
     LH Cargo managers did not disclose exact expenditures but CEO Carsten Spohr revealed that they are currently ten times as high as they had been in 2001.
     According to LH Cargo's head of communication Nils Haupt "the annual amount is a high, double digit million euros sum," spent on fencing-in warehouses, installing cameras, purchasing x-ray machines and explosive detectors, and financing training programs for the employees.
     The agents, like Streck Transport are also hit by mounting costs.
     "We have purchased an x-ray machine that is capable of screening entire LD3 containers," said Streck Security Officer Markus Becker (left).
     It cost the agent €350,000 euros plus another 50,000 for financing training courses for the operating staff, maintenance, and to pay for energy consumption.
     "We just purchased eight of these x-ray machines for our stations in Germany and the USA," added Harald Zielinski, Chief of Security and Environmental Management at LH Cargo.
     One very strong message delivered by European speakers was the resolve to partner with the U.S. in security matters, but not at every price.
     "Security regulations have to be proportionate and appropriate, they must not harm the freedom and constitutional rights of our people," emphasized EU Parliament member Alexander Graf Lambsdorff (right).
     "One hundred percent screening of air freight stemming from the EU and flown on board of passenger aircraft to the States as demanded by Washington does not deliver one hundred percent security," Lambsdorff stated.
     He questioned why the U.S. authorities don't apply the same rules as demanded from the EU states as from non-EU member Switzerland for cargo flown by passenger planes.
     "Obviously there is no equal treatment despite mutually accepted security schemes on both sides of the Atlantic.
     "To me this looks more like a U.S. aid program for Zurich's economy," Lambsdorff criticized.
     Warren Miller, branch chief for international cargo at the Transportation Security Administration (TSA) admitted that the upcoming August 2010 deadline set by his administration for 100 percent mandated screening of passenger cargo cannot be met.
     "The international environment is fairly complex," he admitted.
     "TSA's long-term, layered approach to inbound cargo will transform over time as threats, risks, and various program initiatives mature."
     He remained vague regarding a possible new screening date that the TSA might demand.
     Meanwhile the European air freight industry is confronted with new security regulations that come into effect April 29.
     A central database for air freight transactions will be established and known consignors can be certified by independent private validators in addition to state regulators.
     Head of aviation security at the EU Commission, Eckard Seebohm (left) announced. "We want to shift the security controls from the airport to the entire supply chain.”
     "This upcoming EU initiative will surely add to my already compiled 14 kilograms of documents of security regulations and official demands," concluded Lufthansa Cargo's security pope Harald Zielinski at the conference.
Heiner Siegmund

TIACA Brings Its Message
To India

Three For India—TIACA Secretary General Daniel Fernandez (c) with two Trustee members: (L) Sanjiv Edwards, Associate Vice President (Commercial) Delhi International Airport Limited and (r) Madhav Kulshreshtha.

     The India growth story has been causing a ripple effect around the world.
     The air cargo sector has been one of the first to be affected.
     So, when The International Air Cargo Association (TIACA)’s Secretary General, Daniel Fernandez came calling, the message that emanated was simple: India’s air cargo sector had arrived.
     The growth in the air cargo industry in India has attracted the attention of global trade associations like TIACA that are keen to promote their membership in the region.
     Perhaps, more than ever, the Indian air cargo sector could do with TIACA’s membership.
     As the country’s economy moves ahead and makes its place among the top, the air freight sector—long relegated to second-rung status after passenger—could use a strong voice internationally. What TIACA would like to do is assist policymakers in effectively addressing security issues around the world.
     Given its membership across the air cargo supply chain and its international focus, the association is uniquely positioned to address issues such as international harmonization, security protocols for international cargo and best practices.
     Today, in addition to Air India, Delhi International Airport and Traxon India, the number of members from the country does not cross a dozen.
     In comparison, the Middle East has 40-odd members.
     Initial hesitation had, perhaps, stopped organizations from becoming members. In addition, many in the industry believe that TIACA and similar international organizations are bodies that do little except hold meetings and seminars. Trade bodies are often groups funded by the companies from the industry that they serve and their sole purpose is to promote the sector through publicity and lobbying for the improvement of the industry.
     These associations are also networking facilitators with members from across the world.
     Daniel Fernandez hastened to correct the notion in an exclusive one-to-one with Air Cargo News FlyingTypers.
     “We have been involved in networking,” he said, “and, in fact, we are the top networking group in the industry worldwide.
     “That’s why most of our members have joined the organization so that they can have access to those networking operations. “However, we feel we can do more for the industry.”
     TIACA’s mission, said the Secretary General, is to advance the interests of the air cargo industry and further the expansion of world trade.
     Members of the association comprise CEOs, directors, and heads of cargo and general managers who understand the importance of being part of a strong, global industry association and, in particular, the numerous networking opportunities TIACA provides to meet other industry leaders from around the world.
     Indeed, TIACA is shaking off these negative connotations to let the air cargo industry around the world know why membership is a very good idea indeed.
     Fernandez went on to mention that in the last few years the association had developed and strengthened contacts with similar organizations like FIATA, IATA, etc.
     “A lot of good work has been done by FIATA, IATA and all the other organizations,” he said, “and we are not going to supplant that . . . Instead, we are working very closely to complement and support each other for maximum impact.
     “We have identified those areas and one of them is security.
     “Our representatives in Washington and Brussels regularly attend meetings and we are truly encouraged by the progress that we are starting to see happening.”
     TIACA, said Fernandez, was committed to initiatives and policies that promote “the highest standards of operational security and safety in the worldwide air cargo industry.
     “Security and safety are inherent in the very nature of air transport and have, for many years, been subject to the most stringent international regulation by ICAO and other inter-governmental authorities.
     “What TIACA can bring to the table,” emphasized Fernandez,” is a varied unique membership.
     “We form a perfect platform to bring different parts of the industry together to discuss different issues and we bring different flavors to issues.”
     The idea is simply to smooth the flow of cargo traffic around the world.
     Said Fernandez, “After all, if there is a problem in one section of the supply chain, then the whole supply chain is disrupted.
     “Our committees comprising the members do not air airlines’ views or freight forwarders’ views but those of the industry which is very powerful and the people in Washington and Brussels know that that is the industry speaking in one voice.”
     He added, “we feel it is important to continue doing things that are important for the industry.
     “What we are doing is taking the industry view to the people who are in charge of setting the regulations that govern the industry.
     “In that we are becoming more active than we were ever before.”
     Acknowledging the fact that TIACA had taken a long time to come to India – in fact, it will take quite a while before the association has a firm foothold in the country – Daniel Fernandez said,
     “One of the issues that I would like to address is how the Indian industry perceives the security and environment issues and include those in the views that we want to put forward in Washington.”
     As for India, Fernandez said that while “TIACA has been in the region, we are not very well known in this part of the world.
     “We want to be better known in several markets in this part of the world and India is one of them.
     “So, we are finding the best way we can to address them.”
     During his visit, the Secretary General held several meetings with leaders from the industry “to see what impact we can make in this region.”
     Fernandez’ trip was to gain an insight on a first-hand basis.
     As he put it:
     “It is a listening trip and an exploratory one.
     “We want to talk to first hand players and find out what the issues here are.” These issues, he pointed out, were common to those in “our part of the world and I want to see how we can use the resources that we have for the benefit of our members, for the benefit of our industry or gaining the knowledge that we feel is important to us to bring our work to this part of the world.
     “We have had preliminary discussions and there are many things that we could bring,” he said.
     “India is a big market for the industry and we are just scratching the surface,” he said.
     “TIACA needed to make a connection and that means having a presence here. “I think we would love to have an annual general meeting in Delhi or probably in Mumbai,” but it will not be just yet.
     “I think we can look forward to that in the next couple of years. But first of all we need invitations from the local bodies and we would welcome that.”
     Madhav Kulshreshtha, a TIACA Trustee Member of long standing, who was at the meeting with The Secretary General added:
     “There is no doubt that air freight is witnessing rapid change and increasing complexities in cross-border trade. Today more than ever, the Industry has to clearly distinguish between regional and global issues and approach them on a common platform, along with all stakeholders.
     “TIACA, is perhaps one such organization, with members ranging across all segments of the industry and the globe, that offers such a platform.”
Tirthankar Ghosh

Air Cargo News FlyingTypers leads the way again as the world’s first air cargo publication to connect the industry to the broadly expanding and interactive base for social commentary—Twitter.
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March 4:   FreightScan & Swissport International, installing automated dimensioning systems. Phase one includes AMS, LHR, FRA, ORD & LAX. “Since September 2009 at AMS we have used FreightScan’s products,” John Batten, EVP Cargo at Swissport said. “Feedback has been positive.”

March 3:   Qantas rejects charge by woman who cleans aircraft at Sydney that their layoffs are discrimination. "Reality of airline biz," says QF.

March 3:   DHL spending HK$360 million to expand its Hong Kong operation.

March 3:   International cargo up 28.3% as capacity rises 3.7%. Cargo load 49.6% from 40.1% recorded last January as IATA 2010 numbers begin.

March 3:   Hong Kong said value of goods exported was up 18.4% in January, but USA and Europe values contracted as compared to January 2009.

March 3:   Report SriLankan Airlines buying out Emirates stake in the carrier is “in the works.” SriLankan 2010 losses amounted to Rs. 99 billion.



Christian Becker
Director Russia & CIS
Lufthansa Cargo

Kyle Porter
Sales Manager, NA
Northern Air Cargo

Kay Kratky
Jade Cargo

Contact! Talk To Geoffrey

RE: Letters FlyingTypers Issue March 3, 2010

Dear Geoffrey,

     I'm rather enjoying the 'discussion' that's being developed in ACN - Flying Typers about the value, or otherwise, of industry awards.
     How about a new event that judges the plethora of freight industry award events themselves? ;-)
     Categories could include:
            Best table decoration
            Best acceptance speech
            Best impression of an interested MC
            Best cloakroom
            Best table wine
            Best bow-tie
            Best frock
            Best photo of a star-struck freight executive being presented with their award by some D-List celeb who was prepared to emcee the event for less than USD$5000.
     Imagine the amount of money that could be made from getting sponsors for each of those categories, then getting four or five companies in the frame for each of them, and selling them each a table a 10 at the awards, as they would all feel duty bound to attend.

Kind regards,
Ian Matheson
Impress Communications
United Kingdom


     It is very refreshing that you publish both good and bad that is said about you and your publication.
     As for IATA's WCS, I believe it is an excellent forum (as well as the ACF and other major Cargo forums) to exchange ideas with cargo industry leaders in order to move forward and improve the industry.
     Award ceremonies, and as Mr. Prince rightly argues, are valuable inasmuch as the awards are voted by the industry itself.
     Winning an award is still something prestigious but I remember reading a long time ago (in your newsletter) that there were too many and many magazines and organizations do their own.
     However, the ones mentioned here are indeed well worth having under your belt.
     And although IATA fees may seem high and travel and other related expenses heavy for some, I believe the work that they do is important and does help our industry move forward.
     I have the utmost respect for Mr. Popovich and the work he is doing for IATA Cargo.
     Thanks for your straightforward opinions, even if you do have to ruffle a few feathers from time to time!
     Glad to see more women in cargo too.

Best regards,
Elisabeth Szentkereszty de Zagon
Senior Marketing Analyst - CAPMAN RMT
FedEx Express Europe, Middle East, Indian Subcontinent & Africa

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