Vol. 10 No. 96                                                                                                    Friday September 30, 2011


E-Freight Issues At Singapore

     Even in the perfectly conceived concept that is the state of Singapore, not all of the people buy into the idea of ‘progress’ all of the time.
     At least, that is, where e-freight is concerned.
     That was the message from Steven J.K. Lee, the presiding Chairman of the Singapore Air Cargo Agents Association (SAAA) (Also see report with Mr. Lee on the state of air cargo business in Singapore, datelined September 12).
     A certain Madam Mary Wu, Managing Director of Singapore Baggage Transport Agency, set up the SAAA way back in 1971.
     She saw the need to represent the interests of Singapore cargo agents and started with those among her coterie.
     The number totals more than 140 now, a testament both to the huge expansion of Changi International Airport and the SAAA’s ability to handle that growth, as Singapore metamorphosed into one of the top five cargo hubs in Asia.
     To ensure each member has sufficient capital and logistics expertise, all SAAA agents must be cleared to manage waybills on behalf of at least two airlines.
     “We are proud to be one of earliest associations established for the industry,” said Lee.
     “Our aim is to work closely with the other associations such as FIATA, IATA, the Asean Federation of Forwarders Association, and to be a bridge for our members to authorities such as customs, the airport police, airlines, and various chambers of commerce.
     “By doing so we try to track the latest trade developments and better understand the region and its economy.
     “We’re like an information channel for our members really.”
     Singapore tops most global leagues as the easiest and most progressive place on earth to conduct business, so it is no surprise that it is a proponent of IATA’s push to implement the use of e-freight on all feasible trade lanes by the end of 2015.
     “It is one of our top priorities and is being headed by the Civil Aviation Authority of Singapore,” said Lee.
     “We are trying to implement this a.s.a.p. but the hindrance is the support of the carriers. It is not that they are resistant themselves; it's just that some of the countries are.
     “You need the origin and destination to be ready and not all are.”
     There is also resistance within the logistics and air cargo agent community within the city-state.
     “Singapore is willing to do it, but the problem for our members is it increases costs,” admitted Lee.
     “For international players, it’s not an issue. Most already have their own e-freight systems; it's the local forwarders and agents who have an issue.
     “Some say it's unnecessary, especially the smaller forwarders. There are long-term savings but the start-up costs are high – a new computer system and equipment etc. They can’t see why they need it.”
     A helping hand may be on the horizon, however. “As an association we’re trying to cultivate and change the mindset of the local heroes and help them to reduce costs,” said Lee.
     “Now we are working towards subsidies and we are hoping governmental authority indications that they will find some help for the industry will be announced sometime this year.”
     Of more pressing importance for agents is the price of aviation fuel. “This affects agents because fuel surcharges increase costs,” said Lee. “We try to pass them on to shippers, and try to lobby them to accept them, but it’s not always possible.
     “Security initiatives are also piling up the costs for forwarders and agents.
     “Singapore is like anywhere else - it always makes sense to limit your costs.”
Sky King



India Air Cargo Agents Association Upcoming Convention

     Announcing that its 38th annual convention will be held between November 3 and 6, 2011, the Air Cargo Agents Association of India (ACAAI) has emphasized that it wants to take a look at the new world order that is emerging after “the economic recovery has softened the pain of recession of the earlier years.”
     Said ACAAI President, J. Krishnan (right): “The convention will explore the dynamics of these changes and its effectiveness where many legacies of the past stubbornly refuse to give way to the new world order.”
     Krishnan pointed out that the inadequacies of infrastructure in air logistics “seem to be increasing by the day and past few months, most of our metro airports have become dysfunctional. The Indira Gandhi International Airport at Delhi seems to be the worst affected, where air cargo lies waiting for days before it can be processed and uplifted.”
      Blaming the airport operators among others, the ACAAI chief said that many of the inefficiencies were manmade and could be resolved if all the agencies involved could see the situation dispassionately and address the genuine concerns of the trade.
     The air cargo stakeholders have been repeatedly pointing out that performance parameters must be established on the custodians of air cargo facilities at the six major airports in the country: Delhi, Mumbai, Bengaluru, Hyderabad, Chennai and Kolkata. In addition, to ensure reliability of operations at the cargo facilities there was also the need for an independent audit to monitor the performance.
     In a recent country report, ACAAI mentioned that while the air cargo industry’s progress was gaining momentum despite the deficiencies in infrastructure, once the facilities improve it “can ultimately revolutionize the Indian air cargo industry.”
      Krishnan underlined the fact that the current Infrastructure was under immense strain – a fact that air cargo stakeholders across the country have time and again pointed out. The facilities available at all airports were grossly inadequate to handle current levels of cargo—never mind the predicted volumes in the near future. The only answer, advocated ACAAI, would be the setting up of off-airport facilities like cargo villages and airfreight stations.
     Way back in 2009, the idea of setting up off-airport facilities was suggested by air cargo stakeholders. In fact, it was done after consultations with the Customs authorities and that resulted in the establishment of the first-ever airfreight station (AFS) at Chennai. Even as that station struggles to become fully functional, the second AFS was notified at Mumbai in 2010.
     Mumbai, according to the ACAAI boss, was the most important aviation gateway for India's airborne foreign trade. When the airport was privatized – it is now handled by the GVK group – “hopes had been raised that the rudimentary infrastructure available for cargo processing would receive a facelift and a more acceptable working environment would be ushered in expeditiously. But this remains a distant horizon even today,” Krishnan said.
     Bharat Thakkar, (left) a prominent freight forwarder from Mumbai, was blunt. “There has been no improvement in Mumbai at all -- apart from some minor alterations like shifting the parking and other very small changes.” He said that private operators could utilize the import warehouse as a bonded facility since it is near the airport. “If that is not feasible, then the authorities need to create facilities within the air cargo complex,” Thakkar demanded.
     Mumbai’s air cargo fraternity has been meeting the cargo authorities at Mumbai International Airport and despite regular assurances, little has been done. One reason given by the airport authorities is that the airport has been handling larger volumes of cargo, which has prevented the enhancement of facilities.
     In most air cargo conferences, the Customs department is taken to task for delays and this convention will be no different. One of the fundamentals of air carriage is speed and timely deliveries, said Krishnan, and in a seamless flow delays often lead to cost escalations.
     “Customs should become facilitators rather than enforcing agencies,” he said. Along with other members of the apex air cargo body, he agreed that there could not be any compromise on safety and security, “but under the guise of such measures retarding free flow would not be in the interest of the economy. The idea of transporting cargo by air is defeated due to cumbersome customs documentation, procedures, etc.”
     Customs, advised ACAAI, must come up with new systems and procedures for expeditious clearance of cargo. The department must review its Risk Management System and streamline it in such a way that only a few consignments need to be checked at the airports.
     The stage has been set. It remains to be seen whether this convention is different from the others. It could be. Considering the fact that it is being held this time at Amritsar (certainly closer to Delhi than Bengaluru, where the last one was staged), the presence of important functionaries from the civil aviation ministry would be a welcome change. And, what action these functionaries take would be more important than anything else to the air cargo fraternity in the country.
Tirthankar Ghosh


Where In The World Is Joe Berg?
 Standing left to right, Joe Berg and Dieter Bloch, adi-Consult based in Cologne. Seated from left Ursel
Jahnke (Joe's long-time secretary) and René Berg.

    Joe Berg, a dreamer and a doer who graced the air cargo industry with his intelligence, charm, diligence and hard work for half a century, and by any measure can be counted as part of that small cadre of true pioneers of the form of air freight forwarding, is alive and well and living in Stamford, Connecticut.
     Joe once operated a Connecticut company called Air Express International “Wings & Wheels.”
     Along the way, he changed the way the world did air cargo forever.
     Although the song of a grand lifetime career has ended, the melody lingers on.
     But that is just the mark of the man.
     His friend, Guenter Rohrmann, tells us what it is about Joe Berg:
     “Out of the AEI family emerged a truly remarkable leader whose thoughts and actions impacted the methods and standards of international air commerce.
     “Forty-eight years ago, I came to know Joe as a professional and even more importantly, as a profound human being.
     “He was able to do things and walk in places for the first time that changed air commerce forever.
     “Together with the late John Emery Jr., Joe brought about a fundamental change that continues today as a matter of fact in air cargo, when the two ‘competitors’ teamed up and fought the old USA Civil Aviation Board (CAB) and created the method under which commissions would be paid to agents on consolidations.
     “In 1978, as the airline business in USA was deregulated and some smaller cities lost airline service, Joe was out front as the driving force behind creating an all-cargo airline that would serve those cities.
     “Although commitments were made to share profits and losses from a large domestic competitor, the partnership unfortunately was not continued.
     “But the gauntlet had been thrown down and AEI was an air cargo business innovator and concerned shipping partner in deeds and well as words.
     “Perhaps of all the lasting contributions Joe gave to air cargo, none has been as far reaching as the creation of the Logis AEI Global IT System.
     “Logis AEI changed everything when with vision and complete dedication, Joe forged a great IT system out of the 20 or so systems that existed and were in use throughout the AEI world.
     “In 1981, Joe Berg brought revolutionary IT to AEI and air cargo.
     “But behind it all, Joe Berg is also a great human being.
     “He has a keen eye for opportunity and the ability to see both sides of a question and more than enough courage to innovate and lay down new paths.
     “Joe is also warm and ethical to the core, easy in one-on-one relations, tough when the situation demands, and also open to new ideas.
     “Simply put, Joe Berg shaped AEI in his own image and although things changed after he departed, his presence was always keenly felt and his influence was never lost.”
     Joseph N. Berg was born on April 26, 1927, in Newport, Rhode Island but was raised in Camden, NJ, graduating from Camden High School where he was a successful athlete, having lettered in Track & Field, Football, and Baseball.
     He enlisted in the U.S. Army in the spring of 1945, and returned to civilian life in spring 1947.
     He attended undergraduate classes, first at the University of Richmond on a football scholarship and under the G.I. Bill, but completed his degree in Romance Languages from Mexico City College in 1950.
     He also attended the University of Pennsylvania for some graduate level work, but later rounded out his studies at a Harvard Executive Education program in 1987.
     He was an accomplished Weight Lifter, winning Gold Medals in the 1947 and 1948 Virginia State Championships.
     He married René Neibart in March 1952, and together they have three sons (Jonathan, Donald and Paul).
     Joe's first job came as a salesman selling Penn Fishing Reels in Philadelphia in 1950, but he first joined the air freight business with the Peter Bernacki Company in Philadelphia, where he worked from 1950 to 1955.
     In 1955 he then joined Air Express International (AEI), establishing a Philadelphia office and becoming its District Manager.
     Air Express transferred him to Idlewild (JFK) to become Station Manager in 1960, and then again on to Frankfurt, Germany in 1963 to assume the role of Vice President for Europe, Africa and the Middle East.
     After spending two years in Paris with the same title, he later returned to Frankfurt before returning to the U.S. with this family in 1969.
     In 1969 Joe became a Vice President with Circle Air Freight, a position that he held until becoming the President and CEO of Air Express International in 1973.
     After 12 years as President, he retired from Air Express in 1985 and again returned to Circle International, becoming its USA President from 1986 to 1989.
     In 1991 he joined Dynamic Air Freight as its President until 1992.
     After several years of partial retirement, he joined with the International Executive Service Corps (IESC) and performed as a consultant on location with assignments in Cairo, Egypt in 1994; Siberia, Russia in 1995 and again in 1996; and in the Ukraine in 1997.
     Joe is a multi-linguist, with perfect fluency in both Spanish and German, and a strong working knowledge of French and Russian.
     He has been an avid hunter and sportsman, having been on several safaris to Africa and Australia.
     His work and leisure have repeatedly brought him to more than 75 countries on six continents.
     He has been a lifelong collector of both stamps and books, and has amassed one of the largest private libraries on African hunting and exploration.
     Guenter Rohrmann concludes:
     “The name Berg in German translates into English as ‘mountain.’”
     As it happens, that is exactly what Joe Berg is to hundreds, even thousands of people in and out of air cargo and elsewhere during his life.
     Joe is a solid rock of a human being, a mountain of forward-thinking leadership and unselfish decency.
     Keep on keepin’ on, dear Joe.
Geoffrey/Flossie



Heide Enfield

Oliver Neerfeld
Head Of Competence Centers
Traxon Europe

     I arrived on the 10th of September 2001 in EWR; my plan was to have a meeting with a potential customer the next day in NYC, Long Island (at this time I was still with Lufthansa Systems).
     On 9/11 around 9:00 am everybody from our side was ready for the scheduled meeting, but our fellow American side came in a few minutes after nine telling us about rumors of a Cessna having hit one of the twin towers. I immediately looked on the internet and found different sorts of news/rumors, but not a clear picture. Everybody in the meeting room had a strange feeling and the apprehension that this might be more than just an accident.
     Around 9:45 the MD of our potential customer entered the meeting room, calling for me to tell me that my father was on the phone (my family knew that I was in NYC, but did not know the name of the company we were visiting). I went to the phone and my father asked me whether I was fine and if I had heard the news about the terrorist attack. I mumbled something like "not really" and he gave me the fatherly advice to call my wife (she at that time was at home with our daughter Sarah Johanna, 1.5 years old, and pregnant with our son Ben David, born in October 2001).
     After the call with my Dad I tried to get a telephone line to get through to Germany, which was quite difficult, but it somehow worked. When I heard my wife’s voice, it was the moment I realized that something fearful and unthinkable must have happened. My wife roughly told me about the pictures she had already seen on TV; I just said that I was ok and that we were about 30 miles away from NYC, then the line cut out. We talked again later in the evening.
     Back in the meeting room everybody was more or less aware of the critical situation and we decided to cancel the meeting for the day. My colleague and I drove back to the hotel where a huge croud of people were in the bar, watching the pictures on TV—for me it was the moment of truth, but also the moment of seeing the incomprehensible...I then realized that this act of cowardice would change the political word, the airline/cargo business I was working in, and also my personal attitude.
     Nevertheless, the next day we started our business meetings, but I assumed that everybody was still mired in thoughts of what happened – even in Long Island, we could see the smoke of the collapsed twin towers… there were moments when I thought of going to ground zero to have a voyeuristic view of the tragedy, but my respect for the victims and families kept me away. I collected all the newspapers from those days and still have them at home… around 9/11 every year, my son Ben David asks for those newspapers and remembers very well that at that time his mother had a hard time not showing anxiety.
     On Saturday, September 15th, 2001 I took one of the first flights back to Germany—it was the saddest and most silent flight I have ever experienced. Some of the flight attendants had stayed in a hotel where during their breakfast on 9/11, they saw the second airplane flying into the twin towers.
     Today, when I am on my regular business trips I sometimes get impatient about all that security stuff, BUT then again, I remember that this process is to protect my fellow travelers and me.


Ingo Zimmer
Managing Director
ATC

     I was in my office in Frankfurt and a colleague showed up, saying, “Did you see what happened in the United States?”
     We were checking the web and TV news and as the terrible news came forward, we could only sit, watch and feel the initial utter disbelief eventually turn to ultimate sorrow for everyone’s loss.
     I knew at once that what was also unfolding was a step change in the world that would affect all of us wherever we lived, worked or traveled.
     You must recall that there had been attacks in Spain in the underground trains and also attacks in UK, but 911 just changed the world for everybody.
     I was raised up in Germany post-World War II, but I always felt completely relaxed and safe in my life.
     But since 911, now ten years past, that feeling has gone away, probably forever.
Actually, the impact on our lives continues.
     My job includes a very large amount of travel to various countries of the world.
     Today, I never feel completely safe anymore, no matter where I am.
     It must be especially tough on Americans; that’s my view.
     The feeling is that this kind of horror can happen again.
     As far as air cargo is concerned, the 911 legacy has raised costs to the point that some destinations require security procedures that can add 10 percent and more to the contract.
     We never thought 911 would happen, but must now live with this new reality as our way of life.


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RE: Pan Am Takes Flight In America

Hi Geoffrey,

     Thanks for the beautiful tribute to Pan Am. As a proud member of the PAA Family for 22 years, it still doesn’t seem real that 20 years have passed since we ceased operations.
     But I look forward to celebrating and sharing the great memories with my colleagues when we gather in Miami October 20-23rd for the 20th Reunion.
     It should be a once in a lifetime occasion.
     Thanks again!

Brgrds,
Karen R. Schief
Airline Network Services LLC

 

September Song
   As Summer 2011 ends, Walter Huston delivers Kurt Weill's September Song from 1938. Huston, a great stage and screen star is father to John Huston director of films "Casablanca"1942, and "Prizzi’s Honor"1985.    His reading of this plaintive hauntingly beautiful ballad was the first- and for many of us the best ever.

 

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