Some further thought on the public sessions at The International Air Cargo Association (TIACA) Air Cargo Forum (ACF) in Atlanta earlier this month, and its opening, out-of-the-gate gathering held Tuesday morning, October 2, 2012.
     At the very start, the session acknowledged the backdrop of what’s on everyone’s mind—the slowing state of global economy, or as Lufthansa Cargo CEO Karl Ulrich Garnadt put it, the “soft markets” amid volatile fuel prices and completely unpredictable business conditions.
     Otherwise the comments, while not earth shattering, were at least predictable.
     Atlas Air’s Michael Steen emphasized the importance of air cargo with 57 million jobs globally and 2.2 trillion in trade.
     Atlanta mayor Kasim Reed touted a 19 percent growth in air cargo for Atlanta since 2010 and 19,000 jobs—a consistent priority for this mayor.
     Thinking back for a moment to when ACF started as TIACA, The Grand Duke of Luxembourg (2011 GDP $57 billion) delivered the keynote address in 1992; this year, U.S. Secretary of Transportation Ray LaHood ($70 billion budget), in office since January 2009, gave the speech.
     But size aside, Secretary LaHood, while providing some star power to the Atlanta ACF, otherwise noted that the U.S. has the largest and safest aviation system in the world, which is critical to global trade.
     The administration, Mr. LaHood insisted, has been pushing for and has secured open sky agreements and access around the world in over 100 markets that are the foundation for commercial decisions by airlines.
     In closing his remarks, the secretary said, “we are committed to your industry” without more specifics.
But Mr. LaHood did take some questions.
     In response to one query, Mr. LaHood commented that the EU ETS (emissions trading scheme) was “lousy – we are being penalized by the EU” and an unfair tax on airlines, a matter the U.S. is strongly opposed to on both legal and policy grounds.
     Mr. LaHood found some favorable responses with that comment.
     The dialogue part of the show titled “Meeting Customer Expectations in a Changing World” had a panel discussion moderated by CNN business personality Ali Velshi and also featured Delta Air Lines CEO Richard Anderson, UPS Airlines president Mitch Nichols, Atlas Air Worldwide president and CEO William Flynn, CEVA CEO John Patullo, and Coca Cola chief product supply officer Brian Kelley.
     When asked about the current state of business, Mr. Kelley and Mr. Patullo expressed the view that the sluggish economy would continue with “more of the same” difficult conditions, volatility, cautious customers, and a battle for stagnant market share.
     Mr. Flynn indicated his company was betting on a fuel efficient fleet and air freight eventually recovering, as it did in past crises, while Mr. Nichols stressed the need for more free trade and open markets, noting that 70 percent of global purchasing power is outside the U.S.
     Delta’s Richard Anderson had a generally positive outlook, mentioning strong productivity and varying regional conditions—continuing choppiness in Europe, with Mexico doing quite well and Brazil being a well-run country.
     The discussion covered a wide range of topics: the relatively stable logistics activity in northern Europe, how to give domestic companies global access and a competitive edge, the role of social media and youth that are driving brand growth, designing smarter supply chains to connect an ever more complex industry, and sustainability, including noise and carbon footprint becoming critical.
     Capacity management and matching demand were also addressed, whether by adjusting frequencies or taking out certain capacity in weaker markets and shifting assets around. There was much agreement on the need for more international harmonization, citing everything from security to e-freight and regulatory regimes.
     On the EU ETS question, the Delta CEO quipped that “it will probably get resolved by India and China not buying Airbus airplanes.”
     An expertly and deftly moderated panel of top executives concluded that transportation and air cargo especially would benefit much from more regular coverage by the business media.
     A tough act to follow, the second panel—Collaboration for Smart Security— was moderated by Brandon Fried, executive director of the Airforwarders Association, with John Sammon, Assistant Administrator TSA, U.S. DHS (department of homeland security); Kevin McAleenan, Acting Assistant Commissioner CBP (customs and border protection), U.S. DHS; Raymond Benjamin, ICAO (int’l civil aviation organization) Secretary General; and Karl Ulrich Garnadt, Chairman of the executive board and CEO Lufthansa Cargo.      Much of the discussion was between the moderator and Mr. Sammon and focused on U.S. inbound screening and the ACAS (air cargo advance screening), which has been addressed at many other venues and events.
     Mr. Benjamin highlighted the need for data and intelligence and cooperation among the industry partners, using the example of customs and aviation organizations now working well together.
     The clear dissonance was evidenced in the policies and views taken by the U.S., which favor and rate higher security for cargo on passenger aircraft—a reflection of congressional priorities—and that expressed by Mr. Garnadt to treat any and allcargo equally, regardless of whether it ends up being carried by an all-cargo aircraft.
     On a positive note, the convergence of efficiency, compliance, and security seems to pick up speed and additional impetus in response to the need for a global standard for capturing shipment data that can satisfy all.
     As much as airlines abhor regulations, there is no doubt it drives much needed changes in the industry.
     It was also noteworthy that industry/regulatory collaboration has improved markedly and industry solutions are taken into consideration by the respective authorities.
     After the lunch sponsored by Boeing and an address by Mike Blair, senior VP marketing, who hit the highlights and arguments for more fuel-efficient airplanes, Boeing hosted a breakout session releasing their 2012/2013 air cargo forecast. It is noteworthy that the last (2010/2011) forecast for 5.9 percent annual growth didn’t come close to matching 2012 realities—but neither did anyone else’s predictions.
     Tom Crabtree, (right) regional director business development and strategic integration, Boeing presented the forecast after going over market conditions, the differences over the 2001-2011 period in 3.7 percent air cargo versus 8.3 percent sea freight growth rates, and variations in annual GDP (China 6.7 percent, Africa 4.4 percent, Asia 4.1 percent, Latin America 4.1 percent, Middle East 3.9 percent).
     A 5.2 percent annual growth rate is projected by Boeing for the next twenty years, with nearly 60 percent of air cargo being carried on freighter aircraft, resulting in an aggregate demand for 940 new and 1,820 converted passenger aircraft and generating an annual 77 billion global revenue from air cargo for airlines.
Ted/Flossie

     Ask Katja Wichmann, Lufthansa Cargo Head of Global Account Management Europe /Africa, what works in today’s air cargo market, and the answer is immediate.
     “It’s all about a team effort here.
     “As a team we are both young and old here, with a lot of ground to cover and a great spirit to get things right, with a wonderful mix of talented people for both our customers and also of course for Lufthansa Cargo.
     “Of course having a great team also affords me the opportunity to get out and meet customers and otherwise move about in the markets.” Katja notes that she travels about every other week to Amsterdam, Paris, Milan, and Stockholm (which she says is her old hometown) to stay close to her client base, but also for expanding market opportunities.
     “This year we went to Warsaw for the first time and are quite keen on growing our forwarder business (both small and large) in Eastern Europe.
     “Our guys in Poland are very focused and connected to e-freight and we held a workshop with the forwarders there.”
     Katja who has worked in air cargo at Lufthansa for the past 13 years pointed out that workshops are indeed repeated in one form or another all year long.
     As to the questions that no one in our media ever asks a man, Katja Wichmann handles gender specificity with ease, revealing with great pride and relish that she is able to balance her life quite well as a major airline executive and also wife and mother of two young daughters, due to several factors, not least of which is “in addition to the aforementioned team and boss at the airline, having a good marriage and a wonderful husband.”
     And part of her off time is made all the more melodic as Katja enjoys playing the piano, especially the tune ‘Fame’: “my favorite song.”
     That, of course, brings to the fore her time spent in Atlanta as part of Klaus Holler’s team a few years back.
     We think of Holler (now retired and living in Germany) because, among other things, the great man was known for his ability (while also building a powerhouse business for Lufthansa Cargo) to coax some pretty mean licks out of his Fender guitar.
     If making music in the air and on the ground is a measure of a life well lived, we’ll take that anytime.
Katja says simply:
     “I spent a great deal of time in Atlanta—it truly is a wonderful place to live and work, especially in my neighborhood of Buckhead.
     “During my five years in the U.S., I learned my job and developed my passion for air cargo from a superb team (many now retired). Today the forwarders and others I met during my time in the U.S. are still remembered as I deal with their European counterparts.
     “The air cargo business is like no other.
     “We are in many ways—although international—quite local in attitude about people and making business contacts become friendships that last a lifetime.”
     A typical office day in the business life of Katja Wichmann includes the requisite meetings and various strategy sessions, although she admits the new kid on the block (relatively speaking) is the now ever-present iPad, which increasingly acts as a conduit to the world at large from any location.
     “Recently, when I took my three-year-old to the office for an entire day to work, I must admit that she found the experience quite boring, but thankfully she had my husband’s iPad and that certainly kept her entertained!
     “But later she asked us at home: ‘What is a project?’ and also: ‘What is a meeting?’ So I suppose, after some thought, my work was not so boring to her after all.
     “Looking ahead I am a firm believer in Lufthansa Cargo 2020, which involves modern aircraft, state of the art IT, our new cargo handling center, e–cargo, cooperations, and quality.
     “The concept is further enhanced by ongoing discussions plus staying in touch on a daily basis with the drivers that will help us achieve our mutual goals.
     “As that new Lufthansa Cargo Center comes into being for 2018, I very much want to be a part of it.
     “I’m a passionate person about our service and our product and growing with this great company.
     “I feel I got lucky to be given this opportunity and will continue to make the most of it.”
Geoffrey/Flossie

Tulsi Mirchandaney

Olga Pleshakova

Lucy Ntuba

Lina Rutkauskien

Carmen Taylor

Michelle Soliman

Women At American Airlines Cargo

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     Add COAG to the list of air cargo groups (GACAG is another that comes to mind) that is certain to become commonly recognized in cargo lore as a name branded by acronym.
     IATA announced the Cargo Operations Advisory Group (COAG) last month “to bring together members from airlines and ground handling agents to develop best-practice processes and procedures in order to address all aspects of cargo acceptance and handling.”
     “The first effort by COAG will be to review and develop the cargo acceptance processes, including clear processes supporting paperless e-AWB,” IATA said. The group is to address common standards for the acceptance, handling and uplift of cargo, including mail. The COAG comprises 8 airlines and 6 ground handling agents. These matters should be handled by the existing IGHC (IATA Ground Handling Council) but in reality the IGHC is really focused on the maintenance and development of the IATA Standard Ground Handling Agreement.
     That should be an easy test group to gather up because despite what you have heard or may think, in 2012, paperless cargo is practiced by the smallest number imaginable.
     In the meantime, there are no names yet as to the people that will comprise COAG.
     The idea for COAG was driven in part by ground handlers at the 2010 IATA WCS in light of the fact that
airlines continue to outsource ground handling and the GHA (ground handling agents) are faced with pressure from airlines to do the same task multiple different ways based on what each airline sees as the "right" way.
     Hence the COAG has started working on an agreed standard that meets an industry benchmark and so far all the meetings have been by teleconference with two face-to-face meeting a year. The final product will be delivered for publication in the next edition of the IATA Ground Operations Manual due for release in April next year.
     In that case, it’s good that IATA Cargo under all-pro Des Vertannes, is listening.
     Thinking about super groups forming, the idea to make things work better is everyone’s goal, and we have no doubt (seriously) that the goal to do something good is primary amongst the big thinkers that will eventually comprise COAG.
     But great care and inclusion throughout air cargo, research, meetings, and consensus must be gained before a handful of otherwise well-intentioned people come up with “solutions” that are unhelpful.
     Looking at COAG, we are reminded that the IULDUG (interline ULD user group) left IATA and met for the second year as an independent organization in which airlines and non-airlines alike can vote and hold office, something that is not possible under IATA governance. They met last month in Shanghai reformed with former IATA employees, renaming itself ULD Care.
Geoffrey/Ted

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