Vol. 7  No. 111                                         WE COVER THE WORLD                                                       Wednesday October 8, 2008

Will TSA Security Mandates Work?

     Last week as Lufthansa held its air cargo security conference in New York addressing a most important issue, in the audience were several forwarders and other vital links in the logistics chain who must bear responsibility for new rules including mandated screening of 50 percent of all domestic and international cargo flown in and out of the USA by February 9, 2009.
     Joachim (Jo) Frigger is Chairman and CEO of the freight forwarder Emo Trans USA.
     Mr. Frigger, commenting during the proceedings, noted that security will inevitably lead to rising costs, as many in the room and elsewhere are wrestling with just who will pay for pushing the goods through x-ray machines and other technologies to be named later.
     Air Cargo News FlyingTypers asked Mr. Frigger if he thinks that the deadline of February 9, 2009 set by the USA Transportation Security Administration for that 50 percent screening of airfreight is realistic and can be put into practice?
JF: “I am not sure.
     “Also no one is quite sure what TSA will do if the industry is not ready.
     “At this time, the TSA is maintaining the deadline.
     “What could change to move the date back is if international airfreight is effective in making the case that the industry is technically not ready to fulfill TSA demands.
     “Delays to government deadlines are not uncommon.
     “All this however, does not mean that shippers, forwarders or carriers can relax.
     “We need to get ready and together with each other and of course in cooperation with TSA to find an enlightened solution.”
     As he spoke, we thought if this guy isn't the poster boy for the self-made, straight-shooting air freight forwarder in the world today, he will have to do until the real thing comes along.
     But Jo didn't drop out of the sky.
     He has worked and thought about what it takes to be successful since he was a youngster more than six decades ago in Germany.
     During a quiet moment Jo recalled the tough times in Cologne some sixty years ago in 1948 as the German economy was strangled to a stop and money was worthless.
     “We were unable to even purchase a loaf of bread,” he recalled.
     But when times are tough, the tough it turns out, do get going.
     “I vowed to never get on another line again,” he smiled.
     There is a subtle humor, a quick wit, but also a rock hard toughness about Jo Frigger.
     EMO Trans began providing professional airfreight services in Germany in 1965.
     Since that time, EMO capabilities have expanded to include virtually every facet of worldwide shipping.
     “One thing has remained constant,” Jo points out, “our ongoing commitment to providing door-to-door solutions for each individual customer.
     “Our capabilities have grown to include air freight, ocean freight, distribution, warehousing.
     “The EMO Trans Network Offices have significantly increased the scope and coverage of our global operations.
     “Today, that partnership benefits our clients in many markets and through many services around the world with more than 250+ offices located in over 120 countries.”
     But back to air cargo security mandated deadlines.
     We wonder how will medium-sized forwarders like Emo Trans cope in a tough world economy with the upcoming cargo screening scenario?
JF: Air cargo companies will have to come up with smart and cost-efficient solutions.
     “They can collaborate by pooling their shipments for screening at a number of airports or have security
requirements achieved for them by shippers, cargo terminals or airlines directly.
     “After all, the carriers are quite eager to get the goods from the forwarders, therefore cooperation amongst everyone involved in the shipping process should include security.
     “But generally speaking I can say that mandated screening requirements will increase the cost of air freight on passenger aircraft.
     “Ultimately the cargo will have to pay for the costs, not unlike passengers for their tickets.
     “We would prefer that the TSA perform screening, just as the agency does with screening of luggage and passengers.
     “No matter who does the screening, the liability issue should a catastrophic incident occur is unresolved.
FT: How many x-ray machines has Emo Trans ordered or purchased as we speak?
JF: “We are ready to purchase as many as we need however up until now TSA has not decided what variants of which producer will be validated and licensed.
     “Consequently, we are familiarizing ourselves with the various suppliers and their products to be ready when approval comes down.
     “That supports the argument that the TSA-imposed deadline for screening may be preemptive.
     “Alternatively I would suggest a transition time of some months to get this issue settled to everybody's satisfaction and again, many stakeholders prefer that TSA should do the screening.”
FT: When 100 percent of air freight flown on board passenger aircraft is screened, an activity that is scheduled for August 2010, presumably there will be no further need for the known shipper edict now in force.
     What do you think about that?
JF: “Our understanding is that the TSA will abandon the known shipper program after August 2010 but I'm not sure this is a wise decision.
     “As example, the UK has successfully maintained a combination of cargo screening and known shipper programs.
     “It is not clear to me, why the TSA would give up this element of added security.
     “A mixture of security procedures would make it more difficult for potential terrorists to succeed.
     “But in a broader sense the best way to insure workable global air cargo security is for everyone to utilize best practices and maybe even more importantly for the dialogue to ramp up between nations for a major exchange of ideas as all of us work to get security right.
     “Everyone’s future depends on getting cargo security right.”
Heiner Siegmund

Swissport named Nils Pries Knudsen, (left) 48 as Senior Vice President Europe within its Cargo Services division as of January 1, 2009. He joins Swissport from SAS Cargo Group, where he is currently serving as Vice President for Global Sales with global responsibility for Marketing and Sales. John Batten, (above right) Swissport Executive Vice President Global Cargo, told ACNFT: “We are delighted to bring Nils onboard to strengthen the management team of Swissport International and be better positioned to support our existing customers and future growth.” . . . Kuehne + Nagel plans to open a new logistics hub in Obergeorgswerder, Germany in Summer 2009 adding 500 employees to the Greater Hamburg area while combining contract logistics and overland transport activities in the area in one large-scale facility . . .That DHL deal that will start before the end of the year to use United Parcel Service instead of ABX Air means that much of the work goes to Louisville, Ky. More than 7,500 workers’ jobs will evaporate and safety net of benefits disappear, ABX President John Graber said. "What we all struggle with is that we understand we can put a model together for ABX Air to continue forward successfully for a long, long time absent DHL," Graber said. "It's just not the best solution for Wilmington, Ohio where we are located." . . . Here is a chance to operate the airport where air cargo was born as Yunnan Airport Group, which owns 11 airports including Kunming (a facility that was one end of the China-India-Burma Hump cargo flights between Assam, India and China during WW II), is seeking an overseas partner to build a freight distribution center to tap cargo traffic between China and South Asia. In 1942 Kunming hosted the American AVG otherwise known as The Flying Tigers fighter group and all cargo flights that ferried fuel and supplies over the Himalayas, giving birth to modern air cargo . . . John Menzies has issued a profit warning, blaming a drop in cargo. The British company said it expects aviation services to deliver $25 million to $28 million or about 10 percent less than expected . . . Looks like Taiwan and China are inching closer to direct cross-strait weekend chartered flights. A new plan is nearing completion between the Straits Exchange Foundation (SEF) and China’s Association for Relations Across the Taiwan Strait (ARATS). Major change would be dropping of need for flights to detour over Hong Kong to feature passage via a “third location,” saving valuable time and fuel . . . Now that the Trans Eurasia rail service has completed its test run, DB Schenker will launch scheduled rail freight services to China after the festivities for the Chinese New Year in February . . . Descartes said that Lufthansa Cargo has signed a three-year extension of its membership to the Descartes GF-X Exchange to manage its electronic cargo bookings . . . Ethiopian Airlines has launched weekly B747 freight services from Hong Kong to Uganda, Africa . . . French forwarders, Qualitair and Sea International, opened an operation in Dubai Airport’s Free Zone . . .

Remembering Kevin

     We were saddened to learn that Kevin J. Lanigan, 49, of Dongan Hills, a former freight manager who enjoyed spending time with his family, died in Staten Island University Hospital, Ocean Breeze September 29.
     In addition to his sons, Danny and Bobby, and daughter, Megan, surviving are his wife, Margie; two brothers Michael and Patrick, and his sister, Diane Wallace.
     Mr. Lanigan worked as a freight forwarder at Daniel F. Young Inc. in Manhattan and Air Express International JFK Airport for many years.
     “He had cancer and had been out of the business for some years fighting through his illness while working on Staten Island where he lived,” his friend Roy Stapleton, President Global Logistics Network said.
     “Many people in the business and otherwise who knew Kevin, found him a “chip off the old block,” as we say.
     “He was a great guy and wonderful for air cargo.”
     “Dad openhandedly embraced any chance to meet and help others,” said his son, Danny.
     “We all strive to attain his level of compassion and generosity towards others.”
     “He was the most wonderful father who dedicated his life to making his family happy,” said his daughter, Megan Lanigan.
     One of his proudest moments came in early June when the Minnesota Twins drafted his son, Bobby, in the third round of the Major League Baseball draft.
     "My dad was happiest at home, in his backyard, with his family and friends," said his son, Bobby.
Geoff rey

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