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   Vol. 15  No. 74
Monday September 26, 2016

Economic Impact Of Air Cargo
Alan Bersin, Peter Neffinger and Gil Kerlikowske


     One of our industry’s significant shortcomings is that most people outside of the industry do not give much thought to the many lifestyle and economic benefits air cargo delivers and facilitates for their daily lives.
      In times of crises when a child or loved one is critically ill and needs specialized medication, the expectation is that it will be either instantly available or will be sourced and available the next day at the latest.
      The same holds true for those last-minute gifts we buy and expect to be delivered overnight, the last-minute flowers we buy on Valentine’s Day for our loved ones, and the availability of our precious digital devices, without which we are lost—both from a professional and personal perspective. The immediacy and ubiquity has become commonplace with very little or no thought given to what makes it all possible.
      The air cargo backbone facilitating fulfillment of many of these needs has become an invisible network that is taken for granted by most.
      The same holds true for many government officials who fail to make the connection between their country’s economic prosperity and the many complex activities involved in the air cargo value chain that help to fuel this machine. The result is the development of unnecessary or counterproductive policies and regulations that at times inadvertently impede the development and sustainable growth of a sector so vital to the very same objectives they are ultimately pursuing—namely sustainable national and global economic growth and prosperity.
      However, there is a ray of hope. At a recent meeting in Shanghai, the G20 Trade Ministers launched the World Trade Outlook Indicator. This indicator prominently features airfreight as a key driver. The G20 policymakers clearly understand the importance of our industry and are looking to airfreight as one of the key contributors to the health of global trade. As noted in their methodology paper, “Air freight has proven to be a very timely indicator of world trade and an early signal of turning points in economic activity.” This is an important development that helps to highlight the critical importance of our industry and should hopefully also help us to enhance our policy dialogue with international bodies such as the World Trade Organization (WTO), particularly on issues like trade facilitation.
      So how do we close the gap between what is being done at the G20 leadership level and the various government departments involved in the air cargo value chain here in the United States? Surely, if the G20 Heads of State recognize the importance and impact of our industry on the global economy, the same understanding should hold true here in the U.S. As an industry we should relentlessly work towards closing this gap. The key being continuous coordinated dialogue at all levels across the various government departments to ensure that our industry is viewed as a strategic enabler, and the benefits air cargo delivers in the United States are recognized and put at the forefront of all decision-making.
      This is one of the key strategic drivers behind the launch of the U.S. Air Cargo Industry Affairs Summit (USACIA). It’s a powerful opportunity for us as a united industry to drive this point home. With VIP speakers such as R. Gil Kerlikowske,U.S. Customs and Border Protection (CBP) Commissioner; Peter Neffenger, Administrator for the U.S. Transportation Security Administration (TSA); and Alan Bersin, Assistant Secretary for International Affairs and Chief Diplomatic Officer for the U.S. Department of Homeland (DHS), among others, it is important for all industry players across the value chain to be present. This is an amazing opportunity to interact with these important government department heads to help them better understand our business and ensure they are taking our priorities and concerns into consideration.
Lionel van der Walt      If there is one thing I am sure we are all aligned on, it is this very point: the economic value and strategic importance of air cargo as an enabler of economic prosperity is unquestionable and needs to be prioritized as such by government officials in the United States. We should all unite around this cause. So please make sure you join us in Washington, D.C., at the USACIA Summit on October 4-5. Help us emphasize this important point in order to secure the future prosperity of our industry. Every voice counts, so be there and make a difference!
      Remember, Air Cargo is a force for good that makes it happen!

Lionel Van Der Walt
President
Cargo Network Services

If You Missed Any Of The Previous 3 Issues Of FlyingTypers
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