Security And Bin Laden
At Cargo Network Services Partnership Conference Phoenix

Exclusive CNS Phoenix—At Cargo Network Services Partnership Conference being held this week in Phoenix, Arizona at the Wild Horse Pass Resort, the late breaking news that Osama bin Laden was killed in Abbottabad, Pakistan on Sunday night did not create much of an impact on discussions at the posh American desert hotel conference center, despite some spontaneous jubilant demonstrations in Washington and New York City’s Times Square.
     On the agenda at a big blast welcome party put up by Virgin Cargo the first evening were networking discussions mostly about air cargo security, which at least at the onset looked to be “Topic A” at this week’s conference and the lasting legacy of the man who planned the 911 terror attacks on New York’s World Trade Center nearly a decade ago this year.
     Meetings and open panel discussion begin today with the conference concluding Wednesday.
TedFlossie

Has CNS Disappeared Into IATA?

     The set up story for the Cargo Network Services Partnership Conference that appears below here is very different from what we have usually published.
     We want to draw your attention to this, dear reader, because we are delivering on a promise in this thrice-weekly, free form journal founded ten years ago: the mission of changing air cargo media forever.
     In response to our questions directed at relevant qualified principals in IATA and CNS, namely Des Vertannes, IATA Head of Cargo, and Cargo Network Services President, Michael Vorwerk, we have been informed that “the present media policy at IATA requires these answers to come from Corporate Communications.”
     In this case, what that means in the following story is that some of the questions we asked Michael were edited out of the stream; he was apparently censored by his bosses at IATA and not allowed to respond to them.
     This is a surprising development; it is both unprecedented in our experience and also strange because the questions that were edited out included such things as:
     “What is your favorite city and can you share a favorite restaurant?”
     While each organization is entitled to setting its own policies, when we last checked IATA was still a non-profit trade association and according to its published mission, it exists to “represent, lead and serve the airline industry.” Yet for now, they have instituted an across the board clampdown on direct media contacts other than through corporate communications.
     So what on earth would cause an organization whose DG is an avid media source that can’t seem to get enough coverage in the first place to introduce a gag order on its senior executives?
     It is safe to assume these executives were properly and professionally vetted before they were hired and entrusted with their respective positions; therefore, we are mystified by the logic of the emerging need of essentially inserting a corporate communications filter between them and those they interact with.
     If you trust them, don’t gag them; if you don’t, why did you hire them in the first place?
     The issue as we see it is one of competence. Why is someone in corporate communications more qualified to respond to air cargo questions than the IATA or CNS respective executives?
     Mind you, this could be someone with a solid journalistic degree, but if they couldn’t independently explain a NOTOC if their life depended on it, what’s the use?
     The answer becomes obvious once you read their responses.
     The story below is nonspecific in the extreme, plain IATA vanilla corporate speak and bromides that provide very little information of real value on the topics at hand.
     In this case, IATA refers directly to CNS and the Annual Partnership Conference that starts today in Phoenix, Arizona in the USA.
     FlyingTypers is published thrice-weekly on average and strives to address current matters.
     The resulting turnaround time of 6 to 10 days that we most recently experienced when attempting to deliver an opening interview with CNS President Michael Vorwerk seems to indicate that corporate communications is thinking printed magazines with a monthly or bi-weekly publication—nothing near real-time.
     As we previously reported (November 2010) CNS was founded in 1985 following the 1984 revocation of antitrust immunity for IATA in the United States. U.S. airline antitrust powers rest with the DOT and DOJ.
     What that meant at the time was that matters governed by IATA agency resolutions were illegal from that point on.
     The intention was for CNS to be operated at arms’ length from IATA.
     This included the provision of services to airlines and forwarders, which were available elsewhere within the agency, in particular the CASS framework.
     A few other things differentiated CNS – it worked with non-IATA airlines as well as with non-IATA accredited agents.
     The persistent encroachment attempts by IATA over time have been mentioned before.
     Whereas CNS over the years had a board of directors consisting of airlines and forwarders doing business in the U.S., it has been reengineered over time so that the current board “is comprised of senior level IATA executives in the Industry Distribution and Financial Services Division.” Who they are, we don’t know (yet this is a U.S. corporation); only advisory board membership is public knowledge.
     Apparently the brave IATA lawyers are daring DOT and DOJ to dust off the 1985 rulings and take a look at just how at arms’ length CNS is from IATA.
     Now IATA and CNS are interchangeable terms completely.
     The attitude that IATA can do as it pleases and not be accountable to anyone has evidently led to exhibiting some of the worst instincts on the one hand and paranoia on the other hand.
     In our view CNS has always been a good thing for air cargo.
     Here are some reasons why it’s bad for CNS to disappear into IATA:
          •   As a result of the IATA/FIATA tensions, agent accreditation is on its way out, thus CNS will become less vital and useful to its constituency
          •   You don’t need CNS to shovel e-freight and Cargo2000 down people’s throats; IATA already does it globally
          •   The U.S.-specific aspect and culture of CNS is getting lost in the shuffle
          •   Ultimately, CNS is hollowed out and left without a raison d'être
          •   U.S. air cargo has been losing its voice in IATA for some time and this will only exacerbate it; stakeholders will suffer
     Here are some questions for IATA for the record:
          •   Who is responsible for the IATA media policy?
          •   When was the current version put in place?
          •   How has this been communicated to the Members?
          •   Specific to cargo, has Cargo Committee agreed/opposed or commented in any way?
          •   As Mr. Vorwerk runs and signs for day-to-day operations at CNS as its legal representative, how is Corporate Communications in Geneva in a position/qualified to judge/decide what is fit to print regarding the U.S.?
          •   As part of the policy, what is the turnaround time to receive responses?
     It goes without saying, we’ll publish the responses as soon as they are received.
Ted/Geoffrey

CNS Ramps Up Value As Job One

Michael Vorwerk
President
CNS

     While many of our readers may be accustomed to a happy trail mix of personal and business information, due to the censorship handed down by IATA, this story regarding CNS Partnership 2011 has been relegated to the straight porridge of the news – no honey, no raisins, no almonds.
     So when asked what accomplishments can be expected at this year’s event, CNS/IATA had this to provide:      “The CNS theme this year is all about recognizing the value that air cargo brings to the global economy. Our industry seems too often to be defending itself against negative viewpoints, when in fact we add considerable value to the industries we serve and to the economies of the countries where we operate.”
     Much of what has plagued air cargo in the last decade or so is coming to a head at this year’s CNS. If you find yourself wondering about all the regulations being handed down from on high by people who seem to have little to no idea of how the industry really works or what it needs, rest assured your questions will be answered at this latest meeting.
     “We risk finding ourselves increasingly falling victim to ineffective regulation and erosion of profitability through systemic inefficiency. The CNS objective therefore is to create awareness of this problem and start the process of bringing together the key groups in our industry to tackle it.
     “CNS is very optimistic about the creation of the GACAG and their ability to take the lead in this campaign by giving a united voice to the wider industry.
     “As with any conference we have two key objectives, the first being to raise awareness of key issues and the second being to do so in a manner that motivates participants to become engaged and take action,” said CNS/IATA.
     With all that will be said or done at this year’s meeting, we wonder what has happened in the past Partnership meetings to move forward ideas such as GACAG, and just how effective the organization has been.
     “CNS was looking for people to take action and to move ahead with the global cargo agenda. In the U.S. we have had some success, but we would have liked more. E-freight has expanded and people are getting more serious about implementation, but it is still taking too long and the authorities are still moving too slow.
     “Cargo 2000 has moved ahead, but CNS would like more participation from U.S.-based companies,” said CNS/IATA.
     Security has been an ongoing issue, and the question of whether it still will be in the next year or so is all too important to both CNS’s past and future.
     “Security continues to challenge us all and recent short notice changes show the importance of building a long-term sustainable partnership with government security agencies.
     “Within CNS we had more success, delivering cost efficiencies and quality improvements throughout our industry products and services. We also continued our investment in the future by further developing our IT infrastructure to ensure we can continue to deliver in the future. “
     Still, it seems the realization of a Global CNS has not yet been accomplished, despite people and companies within the industry demanding that such a structure is necessary for success across the industry. Without a uniformly organized structure in place, much of what needs to be accomplished will never leave the table, simply by virtue of the fact that it is too difficult to get all hands on deck over the same issues.
     “Whilst the concept of a Global CNS is flattering, the reality is somewhat different. CNS has three key objectives: the provision of neutral efficient services to support the air cargo industry; the promotion of airline–forwarder relationships in a manner that benefits the industry and supports the global cargo agenda; and to promote the industry’s viewpoint with regulatory authorities.
     “The services provided in the U.S. such as CASS and freight forwarder accreditation are already provided elsewhere in the world. Similarly, global airline – forwarder relationships are represented by IATA and FIATA, and now expanded under the GACAG to include shippers and third party suppliers,” offered CNS/IATA.
     So if a Global CNS isn’t possible, then how can change be effected? CNS/IATA had this to offer:
     “CNS can best contribute to the global industry by leading by example. This means continually challenging ourselves in the U.S. to raise the bar when it comes to doing things better and more efficiently, and then challenging the global groups to do the same.”
     Current membership in CNS includes 95 airlines, 5 GSAs, and 1,200 forwarders with 2,500 branches. While always looking to expand in order to spread uniformity throughout the industry, CNS/IATA believes that “CNS is good for the industry because it offers members the opportunity to adopt efficient industry practices and network with key supply chain participants.
     “We strive for greater volumes from participants using our services, greater supply chain involvement at our conference and closer cooperation amongst the industry to address common challenges.
     Recently CNS conducted a vest pocket regional conference. According to Michael Vorwerk, CNS will hold another Mini-Event in the 3rd Quarter of 2011, although the location is not known yet.
     There are some in the industry that believe CNS and its policies are too skewed towards the big U.S. airlines, but CNS/IATA believes this to be inaccurate. “CNS makes services like e-billing available to smaller companies who could not afford to develop their own solutions at the same price as to the large companies.”
     With security as a leading industry topic and the idea of a Global CNS not yet on the horizon, we wonder what kind of scenario could arise that would allow for the USA and EU to draw closer together and bridge differences in perceptions and execution of standards. CNS/IATA believe that a workable scenario would be something that “brings in members of the private sector with U.S. and EC government officials in an initiative to develop a voluntary trusted multi-national freight forwarder and major shippers program, which would perform certain cargo screening and security functions upstream in the global supply chains.
     “Consistent with IATA’s Secure Freight initiative, this would allow trusted multi-national freight forwarders and major shippers to perform pre-departure targeting, deployment of screening resources toward elevated risk cargo and deploy screening protocols that are appropriate to the risk of the shipment.”
     And while our thought has been that the recent concerns about the U.S. DOJ’s pursuit of executives involved in the ongoing price-fixing investigations has been a deterrent to high attendance at CNS Partnership, CNS/IATA has assured us that is not the case.
     “CNS shows record attendance level at its conferences the last two years including many leaders and key people from the entire industry. Therefore, the DOJ investigation is not a factor affecting attendance.”
Flossie Arend

Great Expectations
Versus CNS Horizons

     FlyingTypers carried an interview in a 2009 article shortly after Michael Vorwerk was named CNS president, in which Mr. Vorwerk listed his priorities at the time as:
          •  Cargo2000
          •  Customer requirements – developing joint solutions
          •  E-freight
     In 2009, day one at CNS was a general session and day two had a panel format with competing parallel sessions scheduled—Time & Temperature Logistics for Healthcare Products and Securing the Supply Chain (the same topic as one of the sessions on Monday), while the other tracks were Breaking the Code of Air Cargo Business, which focused on business intelligence and IATA DGR online as paperless business.
     Last year the program then returned to a single track, first with e-freight and then with “getting more of the forwarding and airline community to understand these initiatives and improvements for air cargo.”
     As the public business sessions for CNS 2011 in Phoenix, Arizona take off today, the Monday plenary session format is unchanged as far as we can see.
     The Monday plenary has two keynote speakers; the first in the morning is Steve Gunning, (right) Managing Director Cargo at IAG, the holding company of British Airways and Iberia.
     Just before lunch the second speaker, William Flynn, (left) President and CEO of Atlas Air, will be up.
     Various industry participants are included in the program; the forwarder perspective with Michael Schaecher, the head of global airfreight at DHL, U.S. trade implications by a senior equity analyst transportation services group at financial institution BB&T.
     After lunch comes global ocean freight, a rare guest, Otto Schacht, Kuehne & Nagel’s global head of ocean freight and Eugene Seroka, President The Americas for NOL.
     The strategist, analyst and supply chain principal of D.F. Hoppin & Associates will offer an industry outlook.
     Probably the most anticipated session is the last – Todd Owen, (below right) Executive Director Cargo & Conveyance Security, U.S. Customs & Border Protection, who also spoke at the CNS mini conference in Washington last February, will be addressing concerns at that time.
     His presentation is titled “Air Cargo Security after Yemen” and not only will his remarks be something to look forward to, but also the questions and answers which are sure to follow.
     This continues to be a hot topic with significant impact for the industry.
     On Tuesday there are still parallel ‘specialty tracks’ scheduled – New Technologies & Standards Impacting the Air Cargo Industry and Markets Propelling Air Cargo, followed by another - Competition Compliance in Airfreight and Future Developments for Customs & Security.
     The respective panels comprise a number of experts in their fields, which will contribute to a lively discussion.
     How well each track runs depends to a certain extent on the moderator making the best of the talent and time available.
     The whole thing is over by noon and networking can let loose in earnest until the reception and dinner or thereafter.
     On the face of it, it’s a routine agenda for this conference, with the majority of attendees taking time out of their busy schedules to network, hold customer meetings and use the framework of the event to simply be there and know who else is also going to be there.
     Each person attending has a different rationale for the time and cost invested.
     The bigger question about the role of CNS is a fair question to ask, whether the particular audience attending it actually expects it or not.
     The entire program management is farmed out to a third party, so it’s pretty much between IATA and the contractors for their worldwide events.
     What is CNS specific about this conference, and how much so?
     Truth be told, you can hear these topics at any industry event and probably come across the same mix of people.
     Yet CNS as a USA-specific entity seems to have lost its soul and identity.
     Maybe we are the only ones who mind?
     Here are some ideas:
     The recent FIATA/IATA spat following the Istanbul World Cargo Symposium was centered on agent accreditation issues, the training programs, and changes the forwarders have been demanding for CASS, which IATA elected to ignore.
     After all, in the U.S. CNS counts 95 airlines, 1,200 forwarders (with 2,500 branches) and 5 GSAs.
     You would think these might be topics of interest to the participants, but it seems there is no appetite, much less courage to address the matters openly.
     And in general, the only part of IATA authorized to respond to the media these days is its corporate communications department, not any of the respective section heads as domain experts.
     Apparently the ongoing DOJ investigations – in IATA’s view – are not a factor affecting CNS attendance.
     While CNS appears optimistic about GACAG, the conference program doesn’t include anything on this subject.
     There are a good number of sponsors, which indicate the financial success of the conference is not in question.
     The next couple of days will reveal more about how things are going closer to the ground.
Ted/Flossie

Arizona Aviation History Alive

     Delegates from all over the world visiting CNS Partnership in Phoenix this week will undoubtedly notice the clean, dry air which, in addition to making long, deep breaths a pleasure, is also aircraft storage and parking friendly. That is one reason Arizona is also home to The Pima Air & Space Museum in Tucson, which is one of the largest aviation museums in the world, and the largest non-government funded aviation museum in the United States.
     The Pima Museum maintains a collection of more than 300 aircraft and spacecraft from around the globe, including many that are rare and one-of-a-kind, and more than 125,000 artifacts. The museum is a Tucson treasure and worth a trip from anywhere.
     Pima Air & Space Museum maintains its own aircraft restoration center and offers exclusive tours of the Aerospace Maintenance and Regeneration Group (AMARG), also known as the "Boneyard," located across the street at Davis-Monthan Air Force Base.
     The boneyard has so many aircraft it could make your eyes tired; it is the largest military aircraft-resting place in the world.
     The distance between Tucson and Phoenix is roughly 100 miles.
     The drive via Interstate 10 at the posted 75 mph speed limit is a little under two hours. Arizona Shuttle Service also operates between Phoenix Sky Harbor Airport and Tucson.
More@ www.pimaair.org.
Geoffrey

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