Hermes doesn’t act God-like…
     Hermes was the wing-footed messenger God in ancient Greek mythology, but he was also the patron of commerce, travelers and thieves, making him a very colorful character for different social groups to worship.
     By adopting Hermes as the brand name for its logistics’ offspring, the Hamburg-headquartered mail order group, Otto Versand, was surely guided by nothing but the messenger qualities closely associated with this godhood. Measured by the criteria of success, this decision proves to be in accord with the messenger’s long-time performance, as a recently published analysis of the German express and courier market verifies.      According to the survey, Hermes’ turnover grew each year between 1999 and 2010 by an impressive 9.6 percent on average, making the enterprise the fastest sprouting player in this business, well ahead of contenders like TNT, DHL or DPD.
     Critics claim, however, that the sparkling figures were enabled by a dubious, top-down, hierarchically organized system that is based on outsourcing and exploitation. There are 428 independent deposits working on behalf of Hermes. They are operated by free acting subcontractors, who are guaranteed a certain amount of money for each Hermes package they turn over, paid to them by their principal. The sum differs depending on the area the deposits are located, varying between city or countryside, dense or sparse populated regions etc., but averaging 1.40 euros nationwide.
     Hermes’ subcontractors, on the other hand, mandate the physical labor and courier services to dozens of third party suppliers that start their daily job early morning, sorting the parcels according to their individual tours, then loading their vehicles, getting on the road to deliver the shipments to the final consignees, and finally taking back possible returns to the deposits. Quite a few of these roughly 13,000 couriers working on behalf of Hermes’ subcontractors are paid no more than pittances. For each parcel they deliver they get something between 60- and 70-euro cents. However, all costs, ranging from fuel expenditures for their vehicles to social insurance payments, they have to cover themselves. In the case when fixed odds are not adhered to, the couriers get no money at all.
     It is a problem that blogger “ManFan” describes with these words: “…I worked for a Hermes subcontractor and got 1,000 euros net each month for a 12 hour work day. But quite often the payment came in sluggishly… From experience I know that Hermes doesn’t care as long as the parcels get to their clients in time.”
     Silvia Tito, who calls herself ‘investigator of ruined subcontractors’ in the express and courier biz, compiled similar complaints. “There are way too few entrepreneurs and insiders for running deposits or satellites successfully,” she says. Necessary for doing this effectively is profound knowledge in managerial-economics, says Tito. This energetic lady has been fighting for a long time to drive these aims forward.
     So is Bernhard Niklas, a long-term deputy of a Hermes deposit in Olpe, Northrhein-Westphalia. He sent a 32-page report containing many breaches of contracts at the Olpe satellite to the leading management of both Hermes and Otto Versand. However, the depicted grievances were examined with no irregularities to be found, according to the answer sent by the logistics firm.
     Another critic is Juergen Gruner. Because of black labor and other infringements, the former operations manager at Hermes’ Dessau Satellite filed a charge of criminal offense. One of his claims is that retirees were illegally employed, working eight hours daily for 411 euros per month. By doing so, they only maintain a pretense of legality, but in fact act illegally on behalf of their employer, Gruner claims.
     Meanwhile, Hamburg’s state attorney, Wilhelm Moellers, confirms raids at some deposits managed by Hermes’ subcontractors, which led to a number of criminal investigation proceedings that are still ongoing.
Asked if this business model of subs and sub-subs is sustainable, a Hermes spokesman assured that there would be no basic changes. If there are irregularities, “we look into these cases immediately to avert any wrongdoings.” A very high number, he mentions 99 percent of all 420 deposits run by subcontractors stick to the laws and perform a good job every single day. Inspections and controls have proven this. Gunnar Uldall, president of the Berlin-based express and courier company’s association, BIEK, points to the thousands of new jobs that players like Hermes, FedEx, TNT have initiated in Germany for a clientele that often doesn’t find new employment easily.
     Melanie Hoffman rejects mounting reproaches that the process of contracting subcontractors by Hermes might happen in too lax a manner. “We very carefully review the trustworthiness of our potential partners,” she declared in a publicly issued statement. Thus indirectly confirming that Otto Versand was entirely guided by the old Greek messenger godhead’s positive qualities when creating modern Hermes Logistik Gruppe.
Heiner Siegmund

IULDUG Meet In Florida

     This is the 24th annual general meeting (AGM) of what was once known as the IULDUG, formerly an IATA interest group, and its first AGM as a private, independent group, sans IATA. This declaration of independence is such that IATA couldn’t even be bothered to send a representative to the inaugural meeting, despite the fact that the ULDUG vice chairman, Air Canada’s Urs Wiesendanger, is the chairman of the IATA ULD Panel! The mysterious workings of this association . . .
     The meeting was very well attended, with 113 delegates consisting of 47 airlines, 59 suppliers, a combination of various manufacturers, pooling companies, leasing companies and 7 industry guests, including FlyingTypers as exclusive media, and more importantly the FAA and the UK CAA.
      We published “Romancing the ULD” on March 17, 2010, and a video interview with Mr. Wiesendanger, which resonated with this group. The organization of this meeting was exemplary; particularly when one considers that the support staff of the nascent ULDUG consists of an army of, well, one person: a very capable and competent woman, Louise Ladouceur. Pulling it all together is a challenge for sure, but as evidenced by this meeting, it is imminently doable without the fulltime meeting organizers that other conferences routinely use, which also add cost.
     A brief history is in order—SITA first bought the Swissair ULD control system and made a deal with IATA to jointly promote membership of the interline group. It was a win-win, since one of the conditions of joining at the time was that carriers have an in house tracking system, which of course SITA could offer on a hosted basis. IATA earned a commission from every carrier that signed up with SITA for their ULD control system; in return SITA used IATA to run its annual ULD user group meetings, although neither SITA nor IATA ever really exploited the ULD agreement to its full potential.
     When the last truly experienced and knowledgeable IATA secretary in this area, Ted McEvoy, left, no one at IATA realized what they had and that SITA was paying IATA an annual, albeit modest, commission. Additionally, IATA didn’t share these funds with the IULDUG. IATA got out instead of getting in; it could indeed have been a success story very much like CASS.
     SITA, for whatever reasons, didn’t make further investments in the ULD system. It ultimately resulted in SITA cancelling the agreement and IATA subsequently lost a useful source of revenue, but more importantly, it missed another opportunity to serve the industry. About five years ago, the ULD system was re-launched on a new platform, currently provided and operated by JMI of New Zealand, now a Brambles company. JMI, a member of the ULDUG, provides ULD repair services and its software solution naturally includes repair administration functionality, which is a big plus.
     The reason the user group elected to become independent was summarized as the difference between IATA being airline centric versus the group being ULD centric and, as such, dependent on the broader logistic chain of which the airlines are but one part. To give legitimacy and legal recognition to its stakeholders, the user group wanted autonomy of action to manage and protect its asset – the software system – without a trustee, to control the timing and location of its general meetings and the ability to expand interline ULD tracking throughout the supply chain to include non-IATA airlines, all things the rigid IATA framework doesn’t support. It’s a refrain we have been hearing from other groups, such as the freight forwarders who are in a similar situation. And not surprisingly, it’s easier said than done!
     The challenges abound and start right in their backyard, or rather the head offices of the carriers, where the value of ULDs to the airline commands little recognition from top management. ULDs compete with major cost factors such as fuel and crew and as a line item on the budget pale in comparison. Yet remove the container or pallet ready to load and transport passenger baggage or high value cargo and all hell breaks loose! And it’s more complex than that; ULD construction has evolved to include lightweight materials, which make a significant contribution to saving expensive jet fuel and reduce the emission footprint, materials engineered to absorb inflight explosions and incorporate fire containment characteristics. It has also expanded to include sophisticated units capable of handling the demands of cold chain logistics based on pharmaceuticals, a six billion dollar global business in 2009, for which 65 percent of the spend is for air shipments, and which is projected to grow 40 percent by 2015. A little education will have to go a long way in addressing this blind spot.
     The group currently consists of 57 member airlines and it clearly needs to attract many more to avoid losing track of ULDs transferred to non-members as well as build up its budget through more members and system transactions that benefit its global scope and ambitions. This is not trivial at a time when industry consolidation continues—UA/CO is but one example. The IATA MITA (multilateral interline traffic agreements) is no longer limiting the new structure of this non-profit user group. The presence of TIACA chairman Michael Steen as a guest speaker is a sign of the recognition and the value this group presents, as is Mr. Steen’s commitment to have ULD as a topic at the October 2012 Air Cargo Forum in Atlanta.
     The chairman of the user group, Dick O’Mara of UPS, and Urs Wiesendanger, his vice chairman, spared no effort in emphasizing their interest in cooperation with IATA’s ULD Technical Panel and their reliance on those technical standards, as well as various airworthiness regulations and handling practices of which the user group will steer clear. Delineation and clarity of scope were perceived as equally important as a well-defined mission statement.
     A worldwide airports survey of ULD “friendliness” that Louise Ladouceur managed was presented at the meeting and showed the promise and value the user group can bring to bear; based on nine questions and a weighing system, it received input from 54 airports and 39 airlines with a tier of top performing airports—ATL, BAH, BOS, CEB, CMB, DFW, DUB, EWR, HEL, HKG, IKA, ICN, KIX, KUL, MXP, PEK, PVG, THR, YYZ, YVR, ZRH—and a low scoring collection—BCN, BKK, BOG, CDG, FCO, GRU, LHR, ORD. There was also a lot in the middle. As evidenced by similar reports in the public domain that regularly audit airlines’ and freight forwarders’ performance for all to see (the Cargo 2000 monthly data summary comes to mind), such reports can act as a powerful incentive to be at the top of the class. It can also be the foundation for expanding the report to reflect the performance of ground handling companies at these airports. ACI [Airports Council International] is presently Montreal based; as is the user group secretariat and synergy can be exploited.
     Given the long standing dedication and active support of the equipment manufacturers, there are benefits, as represented by globally known, iconic figures such Nordisk’s Bob Rogers and his 28 years of experience in the industry. He has authored many of the operational guidelines aimed at ULD storage, continued airworthiness of ULDs, ULD build-up and breakdown, ULD transportation and ULD operations training and qualifications published in both the IATA ULD Technical Manual and the Airport Handling Manual. The twenty or so pages replace outdated text that took up all of five lines in previous editions. It is hoped that IATA will be open to sharing this material with the user group in the interest of the industry. Training when it comes to ULD handling remains one of the major challenges and is definitely the weakest link.
     While staff performing various airline functions that touch on aircraft require certification, whether it’s weight and balance or flight planning, and despite the fact that in Europe, for instance, ground handlers require licensing, this does not extend to ULD handling despite the fact that ULDs are governed by the same regulations and airworthiness directives as aircraft. Lack of harmonized standards in different parts of the world contributes to more complications for manufacturers and operators alike. Furthermore, the majority of ground handling agreements between airlines and ground handlers do not include ULD specific terms and conditions. This is clearly an area the user group intends to focus on and develop proactive measures going forward, particularly regarding ULD storage at airports, not only loading, which enjoys some regulatory inspections.
     The group has a number of important resources going for it, such as direct participation by its members in SAE [Society of Automobile Engineers] activities for aerospace standards and degradation requirements in the person of Hans van Rooijen of Nordisk. One of the panels at the meeting “Safety and Continued Airworthiness for ULDs,” in addition to Mr. van Rooijen, featured the FAA with Kenneth Kerzner and Joan Hughson, the UK CAA with Jason Sandever, Unitpool’s Steve Collins and Dick O’Mara of UPS, all professionally moderated by Bob Rogers.
     A second panel later dealt with the “Proper ULD Tracking Across the Logistic Chain,” moderated by Ian Kentfield with Amsafe Bridport and Michael Steen, Executive VP Atlas Air; John Stewart, VP Operations ACL Airshop; Jean-Bernard Cathala, Vice President Swissport; James Everett, CEO JMI Aerospace; Andreas Seitz, Jettainer and Kuehne & Nagel’s Raul Villavicencio, Manager Airfreight Perishables. After identifying a number of obstacles, the summary offered specific steps that will need to be taken to fulfill the mandate of the user group, including protecting the ULDs and tracking them across the supply chain while staying focused to deliver and build on successes. The exchange and sharing of best practices across the board was seen as an important goal.
     Dr. William Pelletier, PHD Researcher at the University of Florida, presented “Air Shipment of Perishable Products,” the findings of a combined lab and field series of tests mapping and investigating temperature variations throughout the shipment cycle. Solar radiation was by far the greatest factor and he recommended using reflective, breathable ULD covers for protection when shipping perishables.
     Chris Wren with Amsafe talked about ““Expect more from your ULD” and, as a relative newcomer to the group, put his finger of the special dynamics of the participants that he observed, their passion and enthusiasm, which was motivating and promising. To formalize a more open and inclusive way forward, the executive committee would undertake to consider restructuring itself into a steering committee with members from the manufacturers, the pooling companies, the repair companies and ground handlers. Official feedback was expected in a January 2012 timeframe.
     There’s much to do and accomplish between now and next year’s AGM in Shanghai; stay tuned!
Ted Braun

Emirates Sky Cargo Moves
36-Ton Rudder Shaft Seoul-Dubai

All hands on deck as Emirates SkyCargo moves a 36-ton rudder shaft from Seoul to Dubai.
     The rudder stock—9.16 meters long and 1.05 meters wide—was moved to aid a ship stuck under repair in Dubai, and was the single heaviest item ever carried by the freight division of Emirates Airline.
     In partnership with Dubai-based charter broker Air Charter International, an Emirates freighter—a Boeing 747-400F—was moved from Seoul to Dubai and tested ground-handling operations at both airports to the fullest.
     “Transporting a piece of cargo this heavy requires the highest degree of care and special handling,” said Hiran Perera, Emirates’ Senior Vice President Cargo Planning & Freighters.
     “Two cranes capable of lifting 50 tons each, along with two high loaders, were required, while more than 30 workers in both Seoul and Dubai made sure the intricate loading operation went smoothly.
     "Precision planning and the combined expertise of everyone involved at Emirates SkyCargo, dnata, Air Charter International and Atlas Air was crucial to this success of this project,” added Perera.
     “This is testament to our commitment to meeting even the most challenging customer requirements.
     “We are also committed to facilitating international trade, so it is particularly satisfying that we will have contributed to the vessel’s quick return to service.”
     Claire Brugirard, Commercial Manager at Air Charter International, had this to say:
     “We were very pleased with the performance of Emirates SkyCargo in completing this project successfully.
     “This shows that when broker and operator work together as a team, true added value can be provided to the client.”
Geoffrey Arend

Thanks, Steve Jobs
     For as long as I can remember, we have had Apple computers in my family. My mother used the first Mac Plus to edit and publish Air Cargo News, and that operation has only grown larger; now she uses a Mac Pro Tower with two screens and an overlapping display. She says, “I remember going into the printer's and sitting with people that were setting type on machines, cutting type and pasting it on a board and then corrections were made by cutting individual letters.
     “When we got our Mac Plus, it had 40MB on it, but I could input type and correct it instantly. I could lay out pages the way they would look in the newspaper—it was instant, changes could be instant and the control was all at my fingertips. I did not have to depend on anyone and Geoffrey could really do what he wanted, when he wanted. It gave us a true feeling of being in control of our destiny, and our destiny was only limited by what could be done with the Mac. We still relied on the printer then.
     “Today as Mac has grown and developed, so have we, and at our age and at any age it will be there for us, the connection to life itself and survival. Like breathing in and out. I would be lost without my Mac.”
     If you enter our home in Queens, do not be surprised to find a Mac or two or three under or on top of counters, with only their quiet, pulsing, white glowing apples to mark that they are there. My father works on a Macbook Air, and I can always hear him tapping away on the keys when I come home to visit. Despite its lightweight and slender frame, I know that computer takes quite the pounding and keeps on going.
     “I went from a mechanical office Royal typewriter, the kind featured in the movie The Front Page, to a small Mac classic that we bought in Pittsfield, Massachusetts, just down the road from Miller Publishing where we printed Air Cargo News,” says Geoffrey, founder of Air Cargo News/FlyngTypers.
     “I must admit that the Macs over the years have been more word processor to me than the tool most of today’s geeks and kids have been developed to use.
     “But somewhere deep down inside, I realized at one point as a ‘Mac Family’ or as ‘Mac Users,’ Steve Jobs’ creations were making our business possible.
     “It’s hard to calculate why I feel a sense of loss for somebody I never met, but there it is.
     “Without Steve Jobs, there could not have been FlyingTypers,” Geoffrey says.
     My younger brother, Ralph, is a filmmaker who would be lost without the Mac: “I edit on Final Cut Pro (an Apple program) and learned how to be a filmmaker on Apple computers.
     “Apple was instrumental in the digital editing revolution; it turned a process that once took place on machines the size of grand pianos into a process that now takes place in my lap,” says Ralph.
     I’m typing this right now on a MacBook Pro, which is barely a year old. Upstairs in my office, a white iBook sleeps under my desk. Under that iBook sits my old college laptop, a turquoise blue iBook with a dead battery that I just can’t seem to part with. It has a little handle so you can carry it around like a briefcase, and if it worked, I think I would still carry it around with me. In my hall closet, on top of a drum set, rests my lime-green iMac.
     That’s four Apple computers, three of which I no longer use. I’ve never held on to other technology like I’ve held on to my Macs – cell phone models come and go, compact disc players get donated, but I hold on to my Apple computers like they were old friends, because they feel like old friends.
     There is something about the evolution of Apple that feels as if it is growing up with you—or, at least, it did for me. When I was younger, the first Apple computer in our house was painfully basic: a little, heady white computer with a small gray face, the Mac Plus was not useful to me for anything except typing, but in the first decade of my life, what more did I really need it for? By the time I hit high school, Mac computers came in candy colors, which were intrinsically intriguing and fun for any young teenager. They also looked like little, bulbous bugs, endearing in a saucer-eyed, furry-faced, Disney-esque way. By college, my lime green computer shrank to a more grown-up turquoise laptop; despite retaining its fun, trendy color palette, it matured along with me at an appropriate pace – still youthful and colorful, yet sophisticated and compact. Now, in my 30s, my Macbook Pro is silver, sleek and decidedly adult.
     I can’t help but feel as if there were another little life growing up alongside me that matured at almost the same rate I did. So you can see how difficult it is to part with these little computer-siblings, seeing as how they were there for most of the milestones of my life. They are like memories, for me, and I’m not sure how to just throw them away.
     So for now, I leave them hibernating in their prescribed corners, and every so often I plug them in to wake them up and revisit whatever I was doing when last I used them.
     I think that is exactly what Steve Jobs wanted: computers that were not just computers, but felt like extensions of the self. A PC sitting in a home feels like another piece of functional furniture, like a lamp; a Mac sits in a home like a purposeful piece of art – it makes a statement, can enhance the look and feel of a room and, sometimes, is like the quiet, old friend you look forward to seeing when you come home.
     I think my father puts it best:
     “Author Tom Friedman is right: The world is indeed flat.
     “Steve Jobs is the guy, more than anyone else, who made it possible for anybody to put up high quality graphic media on the web.
     “He created the possibilities and we grunts happily jumped on the bandwagon,” says Geoffrey.
     “Thanks, Steve.”
Flossie Arend

Flying Deuces Harvest Moon

     Our Octoberfest is never complete without lighting the first fire at home and hearing at least one version of the 1931 tune “Shine On Harvest Moon.”
     Of all the music that continues to be heard during this time of year in America, none is sweeter or more poignant.
     We have absolutely no explanation as to why Stan Laurel & Oliver Hardy stopped the show during the film The Flying Deuces to do this version of Harvest Moon.
     But we are thankful that they did, because this take is the sweetest, most lighthearted and wonderful version ever.
     But Ruth Etting, who introduced the tune in the Ziegfled Follies of 1931, also captures the season and the music perfectly in her recording, which also includes the verse that the Laurel & Hardy version for some reason did not.

Editor’s Note: I remember this song in a different context, having grown up in a different generation entirely, which was nonetheless influenced by my musical father. “Shine on Harvest Moon,” for me, recalls memories of a singing golden moon that asked me to “follow the bouncing ball.” Here is the song, as I remember it – you may have to skip ahead to about 3:50 minutes in to get to it. If you know the song, you can sing along!

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