Cargo Screening Goes Next Week

     In the early days of aviation, cruising a mile high up in the air in a DC3 or JU-52, you could always tell when it was Sunday because looking out the window, the roads between the towns below were mostly empty, while the parking lots around the churches were always full.
     Come next Sunday, when 100% screening of all USA air cargo goes into law, there may be a few more cars in the executive parking areas at cargo centers, but by all measure things should be business as usual.
     While not underplaying the seriousness at hand August 1st, what was once described in the media and elsewhere with some fear and trepidation may just end up as another slow Sunday with time for a walk in the park.
     In the USA, the gentleman who has been evident in all of this 100 percent August 1 conversation is Doug Brittin.
     Doug has labored long and hard to get to August 1, first as current manager of air cargo programs at the U.S. Transportation Security Administration (TSA) and since May 2010, as that organization's General Manager Cargo.
     Mr. Brittin is likable, low key and thoroughly professional, and his picture here lets you know that right away.
     But beyond the obvious, Mr. Brittin has done some kind of superior yeoman job. Doug was given the position after Ed Kelly, the former TSA chief of air cargo, died suddenly of Legionairres’ Disease shortly after attending Air Cargo Americas in Miami last autumn.
     As the countdown continues we spoke to Doug Brittin, who shared some further thoughts as air cargo’s big day approaches.

ACNFT:   Is the USA ready for 100% screening?
DB:   Overall, the industry is well prepared in the U.S. There should be no issues at any non-wide body airport, as that cargo has been 100 percent screened since October 1, 2008.
     Carriers at larger airports that have only a few wide body flights per day are already close to the mandate, if not already fully there.
     The carriers at the 18 major gateway airports have all indicated that they are prepared to get over the "final mile,” but caution that, depending on how much cargo comes in pre-screened, there may be some instances where cargo misses its intended flight.
     We have seen that most have advised their forwarders or direct shippers to bring unscreened cargo earlier than previously, to allow time for screening to occur (and have published new screening fees).
     We also have a 'latent capacity' in existence as well, with over 75 Independent Cargo Screening Facilities (ICSF's), most of which are at these 18 airports, who can screen on behalf of smaller forwarders or shippers, in advance of delivering the cargo to the airlines. They have indicated the ability to handle over 25-30 million pounds per month.
ACNFT:   Where are the challenges?
DB:   As noted, we really only see any possible challenges occurring at the 18 major gateways.
     The challenge for international inbound is primarily awareness.
     We would prefer not to have carriers having to comply with TSA programs as well as origin country programs.
     However, we cannot accept country programs as commensurate until we are able to review them. We are working with groups such as ATA, IATA, TIACA and AFA, as well as EC and other bi-lateral efforts to help raise awareness and hopefully facilitate sharing of these programs as quickly as possible.
ACNFT:   What surprised you during the past weeks and months, as the deadline has been approaching?
DB:   It did not surprise us that we received a sudden interest in the CCSP, and a high level of applications!      We were prepared for that and our teams are certifying many new entities quickly. As we suspected, some companies waited too long (it takes an average applicant 60-90 days from start to finish, depending upon how prepared they are when they start the process).
      We were also pleased to see the communications effort by the forwarders and airlines, as well as their additional investment in equipment and training, to make up any gaps in capacity.
ACNFT:   Where will you be on August 1 (in church praying?)
DB:   We will all be actively monitoring the situation!
ACNFT:   FT: Is there anything you wish had gone differently in this run up to 100 percent?
DB:   Despite our outreach to over 100,000 companies in the past few years, most companies chose to take a ‘wait and see’ attitude.
     I am not sure we could have done anything differently. We will continue to certify new locations, as we are fairly certain that, post-August 1, many shippers will realize that “yes, my shrink-wrapped skids and/or high value products are indeed being taken apart and screened,” and are showing up at the other end not looking exactly like they were when they left the dock.
     As for inbound to the U.S., we will keep the pressure on to try and get more country programs evaluated and hopefully accepted, but if that does not happen, the carriers alone will have the burden of screening 100 percent, at the piece level, in their airport facilities overseas. That is not an ideal scenario for anyone.
Geoffrey/Flossie

United Goes Full Screen Sunday

     “We are ready!” declares Kyle Betterton, Vice President United Cargo, Managing Director United Airlines, as cargo screening goes 100 percent in the USA next Sunday, August 1.
     “United Cargo has invested a significant amount of funds and done a significant amount of planning, so we are as ready as one can be!
     “The amount of pre-screened freight is on the rise every day and we expect the trend to continue.
     “We have communicated to our customers over the last few years what to expect and continue to communicate our acceptance policies.
     “United continues to encourage our customers to participate in the CCSP so that they can take advantage of the benefits of this program.
       “As part of the run up to 100 percent screening, we conducted a number of ‘Customer Security Forums’ in our main cities across the USA, with up to 70 attendees per forum.
     “These Security Forums afforded us the opportunity to have the TSA join us to answer any questions about the overall program and clarify customer issues about their specific segment of the business.
     “We are also encouraging customers with un-screened freight to tender earlier than posted drop times if possible during the early stages of 100 percent screening.”
     As to what United thinks will happen when 100 percent kicks in next Sunday:
     “The first handful of days may be a bit challenging to manage operationally, and confusing for some customers.
     “But we are confident at United that all the planning and investments we have made put us in an industry leading position to handle 100 percent security.
       “We are also deploying our leadership team to all our key hubs to ensure we are there to support on the ground and resolve questions and issues quickly.
       We asked Cargo Kyle if he has some advice or other thoughts as 100 percent screening begins:
       “Come early if possible.
       “Join CCSP,” he advises.
       “Next up: 100 percent International inbound!
       “We will need an enhanced level of government and industry cooperation to make this a success.”
Geoffrey/Flossie

Don't Fly Away Rene

     Unfazed about the competition and the general gloom in Europe, Rene Peerboom, Director, Air France-KLM (Cargo) based in Delhi, is upbeat about India and is looking forward to a good 2010.
      A staunch supporter of the Dutch football team, Peerboom, who is constantly on the move within the country, believes that Air France- KLM cargo is ready to take off in a big way.
     While most airlines did not fare too well last year, for the Air France-KLM cargo unit “2009 wasn’t a bad year,” said Peerboom during a conversation with Air Cargo News FlyingTypers.
     “I could talk about India,” he emphasized, and pointed out that      “Yieldwise, the export kilos from India was not bad in the air. It was mainly the yield that drove the figures down.” He mentioned that the tonnages going down was not limited to India alone:      “On a global basis, the kilos went down as well, but as an airline in India, we lifted a good amount of cargo.
     “If you look at 2009, I would say that India had a much better year compared to the rest of the world. If you look at the export tonnage, India was even or maybe even a bit better (than the rest). If you look at export statistics, a large part of Asia and Europe had a big drop in tonnage. Given the market conditions, I would say we did very well in India, although the market was not good.”
     However, the end of 2009 brought good news.
     “The good thing we see is that recovery is taking place. It is certainly a change from what we saw in the market—and this was also true of the Indian market—compared to the summer of 2009, which was the lowest.
In fact, the yields then were not sustainable for us (the airlines). We saw capacity flowing out of the market in those days.
     "Across the world we saw a lot of carriers were reducing capacity because it was not viable. Since end-2009, we are seeing yields recovering and it would make more sense now to add capacity,” said the lanky, tall Peerboom.
     As for capacity, according to Peerboom, Air France reduced capacity more than two years ago and “on hindsight, it was smart timing.” As for the India operations, the Air France-KLM combine maintained its capacity during the recession: “We have daily capacity – twice a day out of Delhi and twice a day out of Mumbai and once out of Bangalore. It is about 15 tons per flight.”
     The 30 tons from Delhi and Mumbai—15 tons via Paris and 15 tons via Amsterdam— is, said Peerboom, more practicable than any other airlines: “Both Mumbai and Delhi are what we call as wing-to-wing flights give us flexibility to use the two hubs as alternatives…We stopped our passenger flights to Chennai, but we put in three Martinair (freighter) flights at Chennai.” Around 60 to 70 percent of the cargo from India, Peerboom mentioned, was for Europe.
     “At the end of the day, it is not about how much capacity you have to a destination but how many frequencies you have to that destination,” he said. He also pointed out that shippers and forwarders using Air France-KLM had a double advantage:
     “We not only have one of the biggest airlines in the world but also one of the biggest networks. If there is a challenge in the economy (anywhere in the world), we have more opportunities of changing the destination of the cargo we fly. We can play the game of network probably better than most of the other airlines operating from India,” he said.
     Weren’t the Martinair flights taking away Air France-KLM bellyhold tonnage? Not at all, said Peerboom.
“We pulled out the Air France passenger aircraft and added a Martinair freighter.”
     In so doing, “we continued to serve our Chennai market -- one of the most promising markets in India.” He also underlined the fact that Martinair was part of the Air France-KLM cargo group and in Chennai the Air France-KLM sales manager also takes care of the Martinair sales.
     “That is the best arrangement that you can have. So, that is the kind of cooperation we have. Martinair and KLM cooperate very well together.”
     The Indian market has done remarkably well over the last few years and that has given a lot of confidence to operators like Peerboom. “I am also very confident about the future going by the way the market has been doing over the last two years in comparison to today. The passenger (aircraft) bellyloads are at least as good as the freighter loads from India. It also makes us think of what next (for instance, adding capacity) we can do from India and how can we serve the Indian market in the next few years.”
     With the market becoming so competitive, did Air France-KLM see tonnages going down? Peerboom did not think so. He said, “India has been a competitive market for a long time. I am not too worried about the competition developing at the moment.
     "The only worry that I would have is if the competition starts bringing in too much additional capacity. Then we would have a lot of capacity in comparison to the demand and that would upset the equation in the market. But so far we have seen a balanced approach.”
     He was quick to point out that Air France-KLM would have “to look at the market and our own capabilities. In 2009, for example, we have seen the development of the pharmaceuticals and automotives sectors in India. We have to look at how we can service these market developments best.”
     As for infrastructure getting ready in India, Peerboom mentioned that all airlines faced the same problems brought about by the lack of infrastructure. But good developments have been taking place – especially the brand spanking new Terminal 3 that was opened a few days ago in Delhi. “Let’s hope that the additional handling capacity in Delhi as well as the quality of the handling will see an improvement… I am more optimistic about the infrastructure than I was two years ago.”
Tirthankar Ghosh/Flossie

How Smart Can You Get?

      Air Cargo Netherlands (ACN) has received grants from the Ministry of Economic Affairs for "Smart Gate Learning.”
      In this project, ACN, Schiphol Group and ten air cargo companies have embarked upon utilizing a “serious video game” to help the air cargo industry prepare and train for the changes "Schiphol Smart Cargo Gate" will bring in 2011.
      Smart Cargo Gate claims better security and integrity of the air cargo supply chain plus more efficiencies by controlling information about the flow of goods essential to process cargo.
      Handling of goods is increasingly delayed as walk through inspections and other procedures have become necessary to meet screening law requirements in both the EU and the U.S.
      An important secondary goal of Smart Gate Cargo is to strengthen the competitive position of Schiphol in the import and export booking.
      Smart Gate Learning, a “serious video game,” is being coordinated with Atos Consulting and the Amsterdam game specialist IJsfontein and will be presented during the Amsterdam International Air Cargo Forum in November at the RAI.

The Closer
Tonight July 26, on TNT . . . Geoffrey Arend II stars in US cable TV’s top show “The Closer” tonight at 9pm Eastern on Turner Network Television (TNT). Episode is titled “In Custody”.

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