 At
WCS in Los Angeles last week, IATA served up a ball for the air cargo
industry to chase in that widely reported, “Call for Cut in Transit
Times” ‘initiative.’
Our thought is that using the theme of cutting
transit times as an IATA rally at their biggest annual air cargo gathering
raises even bigger questions as to other, current challenges in 2014,
including the burning problem of having enough economic activity globally
to resuscitate air cargo.
The Bigger Picture
When you look at it, the sad truth is that IATA often
treats the air cargo industry as little more than a side-show to the airline
passenger business, and in that handling can be viewed as little more
than a side show itself, albeit a disproportionate expense to air cargo.
In a world that demands value for money, everybody
needs to be held accountable.
But for the moment that argument is for another
day.
Where Was Tony Tyler?
While nearly everybody loves good-guy, glad-hander
and ever so soft-spoken Des Vertannes, IATA Head of Cargo, we were amazed
that whilst IATA Cargo claims WCS as the most important industry event
of 2014, they could not convince their own Director General Tony Tyler
to attend or participate in any way last week in Los Angeles.
An ex-air cargo man, Tyler has been present and
accounted for at almost every rubber chicken event on the planet during
his tenure, but apparently decided to pass WCS without a word.
By contrast, the IATA DG everybody loved to hate,
Giovanni Bisignani, when he was not front and center at WCS, would send
a “live” video message and pep talk via flat screen TV from
Montreal to WCS delegates, clearly outlining his often controversial thoughts.
But as least Giovanni stood up and was counted.
While it is welcome news that Tyler will apparently
be present at the IATA CNS Partnership in the U.S.A. this May, the global
air cargo village that met last week in Los Angeles and went back to office
with the usual banquet awards got no Tony from IATA.
An Ocean
of Milque Toast
Air cargo can thank IATA for providing a place
to come and showcase ourselves, our thoughts and ideas, and also our products.
The idea that under the WCS umbrella, so many
global leaders and potential business partners can interact for a couple
of days is quite useful.
But at WCS at least, IATA in many cases failed
miserably in its mandated role to provide thought leadership at a critical
time in air cargo history.
There may have been a thought-up central core
of topics at these WCS sessions last week, but the coordination, pacing
and even vetting of presenters was at best uneven, albeit with flashes
of brilliance, and at worst filled with long droughts of who cares blah-blah,
providing time for texting or reading the WCS Daily News for the tenth
time.
The sessions had a kind of numbing affect; at
times somewhat engaging and at other moments the attendees were left bobbing
in an ocean of milquetoast as they moved from session to session laced
with little more than company spiels endlessly repeated in what eventually
became a blur of power point presentations.
Back To Basics
For a moment, let’s focus on what started
our story here and what IATA apparently can't address, much less solve.
The 6-7 day transit time issue has had a long
run; it was thought up first around 1994 by Unisys and hammered at every
opportunity by Hugh Doyle [ex-Aer Lingus] after they employed industrial
engineers to measure it.
“Transit time” has been beaten like
a call to arms drum ever since, unquestioned, to rally the industry into
some action.
While cutting transit times may well be a goal
worth pursuing, how high does that issue rank on the list of priorities
in the 2014 world of Fred Smith or Robbie Anderson (United) or the moving
up Karl Ulrich Garnadt? (Lufthansa recently named Karl as top passenger
executive at the airline as of May 1).
The “key objectives for 2014” IATA
described in their own press release are instructive in and by themselves
and presented in our own “self generated” Q&A here.
1) How exactly would a 22 percent e-AWB
global penetration accomplish a cut in transit times or in any way support
that objective?
2) The “Facilities Matrix” deals
with ground handling—that's something the airlines have long outsourced,
and now they nickel and dime their respective handler to deliver more
for less and expect performance they seldom could have met themselves.
While ground handling companies are meeting under
the IATA umbrella at IGHC (IATA Ground Handling Council), it appears they
would have to “…iron out inconsistencies in the provision
of cargo handling infrastructure worldwide.”
Next IATA will come up with a methodology to measure
their progress and report on it.
3) The Cargo2000 MOP (Master Operating Plan)
has been around for more than 15 years; BT (British Telecom) operates
the “Cargo2000 compliant CDMP” (common data management platform)
that airlines and forwarders can use.
It is a commercial endeavor yet IATA proposes
to extend the MOP “…over the entire cargo supply chain.”
Maybe IATA found a way for BT to give it away
"to the entire supply chain" or otherwise subsidize it?
Measuring performance definitely helps, but again, how would that specifically
contribute to reducing transit times by 4-5 days?
4) As of July 1, 2014, in order to attain
the EU mandated ACC3 stamp of approval, air carriers must undergo security
validation by “an independent EU certified” entity.
It is a measure mandated by the EU, so again IATA
is inserting itself into a matter not of its own making or jurisdiction.
While it helps to advocate for pushing out screening
up the chain to the manufacturers and away from the airport, it's a strenuous
link at best with the stated objective of cutting transit times.
Here again is another case of IATA talking about
something to help perpetuate its legitimacy and self-importance, and illustrate
how indispensable it is.
Your move.
Ted
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