Vol. 12 No. 91                       THE GLOBAL AIR CARGO PUBLICATION OF RECORD                  Friday October 25, 2013
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THE AIR CARGO NEWS THOUGHT LEADER  




air cargo news for October 8, 2013



ast week FlyingTypers presented an exclusive report detailing the ouster of TIACA Secretary General Daniel Fernandez, despite his April re-election (by 11 to 1, and for the 7th time) to a two-year term, and the resignation of two high profile Board members Issa Baluch and Chris Leach.
Here, TIACA Board Chairman Oliver Evans answers some of our questions about that activity.
     If this text reads a bit like boilerplate, or a cut and paste of speeches and position pages, stick with it, because delivering fair and balanced news stories means everybody has their say.
     We deeply appreciate that Oliver Evans took time to answer our questions.

  Please address for our readers the recent publicity surrounding Daniel Fernandez, and also the Issa Baluch and Chris Leach resignations from the TIACA Board of Directors.
     Issa Baluch is a universally respected air cargo executive who has been honored everywhere and has, among other things, served as President of FIATA.
     How do you respond to Issa’s comments in FlyingTypers, and what are your feelings about Chris Leach resignation from The TIACA Board?

  I hope you understand that it is inappropriate and unhelpful to our membership to respond to comments or reported comments made by any individual.
     TIACA is a well-established, distinguished, and precious institution.
     We fulfill a special role in the industry in that our membership is open to companies small and large in every segment of our industry from shippers to forwarders, airlines, integrators, and every imaginable supplier to the air supply chain.
     We take very seriously our responsibility to create platforms for knowledge exchange and networking, and to advance the agenda of the industry and its most pressing issues through the work and interactions of our many committees.
     Like any company or association, members join the Board or step down according to their personal circumstances.
     We are very fortunate to have had, and to continue to have, very distinguished and dedicated captains of the industry serving on our Board, and every departing member is warmly thanked for his or her contribution. Although selection is subject to election by the voting members, we actively seek to encourage diversification (geographical and type of company) on the Board and an appropriate balance between stakeholder groups.
     I am very happy to say that the latest additions to our Board, Mr. Edward, Mr. Kuehner, Mr. Charaf, and Mr. Al-Saleh are not only once again outstanding representatives of our community, but also have added, both in their person and in their company, to the diversity of our Board.
     Like any company or association, our Board regularly reviews strategy and resources, and evaluates organizational needs. In view of our ambition and influence, it was decided long ago (in fact, well before the election of the current Officers) to strengthen the team by bringing in new skills and experience.
     Such organizational evolution inevitably involves a review of all job descriptions. Daniel Fernandez had served our Association well and loyally over the course of years, and every effort was made by the Board to retain his services in a modified, substantial role at TIACA.
     He chose not to take up this offer and consequently he left the company.

  Why did you insist that Daniel resigned when in fact we have confirmation from sources that he was sent a letter of termination?

  I have never stated that Daniel resigned.

  Why did the Board feel it was unnecessary to discuss the reasons for this unprecedented move with the Trustees, since they are the true owners of the Association and its assets?
     Many are still baffled as to why such drastic action was taken.

  It is inappropriate for any member of the Board, including myself, to discuss proceedings except to communicate decisions taken as required.

  Why did the Board feel that Doug Brittin was a good choice—given the restrictions he faces as a recent TSA employee —to interact with the TSA?

  Our reasons have been stated in our press release and in subsequent interviews, including my statement below.

  What new revenue streams are you looking for Doug to bring in given his lack of experience with trade shows and membership recruitment/retention?

  TIACA is constantly looking at ways of enhancing revenues, whether through trade shows or membership.
     Doug comes in as leader of a team, which, as you know, has skilled and experienced staff and management who have successfully accompanied several previous shows.
     In the meantime, TIACA was able to recruit an outstanding individual as Secretary General in the person of Doug Brittin.
     Not only does he bring many years of air cargo knowledge and experience gained both on the side of industry and on the regulatory side, he also possesses the necessary skills to maintain and enhance TIACA’s various sources of revenue and to enable the appropriate support to our very important industry agenda.

  Is there a plan to farm out to third parties the major revenue generating TIACA trade shows etc.?

  There is no plan to outsource any major activity of the Association, but of course it is normal for the Board to continuously review strategy and options.


     As we have looked further into this story, we acknowledge that Oliver is right; he never said Daniel resigned—a blogger reported that.
     As we understand it, Daniel Fernandez did not “leave” TIACA; his employment was terminated in a letter from Oliver Evans, TIACA Chairman.
     But looking further into Daniel’s sudden and surprise departure from TIACA, the “substantial role” verbiage used by TIACA in its original press release appears to be more rhetoric than reality.
     How can a demotion, subject to termination on the spot, be considered a “substantial role,” especially since Daniel was just re-elected for two years as an officer of TIACA?
     To our mind, a “substantial” offer would have been in a contract for Daniel, which sources tell us Doug Brittin, the new TIACA Secretary General, now has.


     Setting aside for a moment how the actual separation occurred, why did the TIACA Board not at least allow Daniel some form of recognition for his decade-plus years of service, and give a good guy who is well liked and respected throughout the transportation world a chance to formally offer his farewell to the members?
     If the recently completed Ram Menen retirement tour, which lasted for over six months and was conducted all over the world proved anything—aside for universal love for Ram—it was that air cargo respects and takes care of its own.
     And for serving TIACA well and faithfully for so many years, Daniel Fernandez deserved more than to be taken out of TIACA with the trash.
     The perfunctory way his termination was announced seems punitive.


     Also, contrary to Oliver’s statements here, there is to our mind nothing “inappropriate” about the Board of a non-profit Membership Association communicating openly with its Trustees.
     To us this secrecy and lack of transparency is precisely the problem to which Issa Baluch and others are referring, and why Issa quit the TIACA Board in protest.
     Like it or not, illuminated in the resignation and words of Issa Baluch is that TIACA is operating with a toxic import from the private sector, which has lead to the Association agenda being driven by a select few.
     Reportedly Chris Leach's resignation was over this situation, and we hear there may be more trustees joining Issa, but that remains to be seen.


     We also have wondered about TIACA’s new Secretary General Doug Brittin’s TSA restrictions.
     Doug at TSA proved to be a great spirit in air cargo, a middleman who worked very well between TSA and air cargo during some tough years of implementing mandated security regulations.
     But that aside, the TSA edicts continue and are getting even more stringent, so the challenges to air cargo are tremendous in the upcoming year.
     That begs the question: why did TIACA, while lauding the expertise of Doug Brittin, hire someone muted by law, who cannot represent its and therefore the air cargo industry’s vital interests before the interests of the TSA?


      We asked Oliver about outsourcing TIACA’s prized revenue driver, the biennial ACF. The next event will be held in 2014.
     Our bet is that outsourcing is exactly what could happen, as the majority of TIACA’s staff was hired this year and most of the in-house group now has no ACF experience.
     It might be a good time for 2014 TIACA exhibitors to look for discounts.
     Our guess is the market will be heard from in that case.
     Whatever the event, our hearts go out to the TIACA staff, which cannot feel very secure in their jobs anymore, not after the way Daniel was treated.
     What do you think?
     All letters and comments are welcome.
Geoffrey



elegates, exhibitors, and speakers lauded this year’s FIATA World Congress as a huge success, breathing new vigor into a logistics industry battling against strong global headwinds.
In his closing speech at Friday’s Gala Dinner, which also celebrated the Singapore Logistics Association’s 40th anniversary, Mr. Lim Hng Kiang, (right) Singapore’s Minister for Trade and Industry, said trade growth in emerging markets was relatively robust despite the IMF recently downgrading its global growth forecast for 2013 from 3.2 percent to 2.9 percent.
     “Intra-Asian trade, in particular, is expected to remain resilient,” he said. “The key drivers for this resilience in intra-Asian trade are the greater regional integration and economic growth across Asia, along with the rise of the middle class in Asia.
     “By 2050, Asia could account for half of global output, trade, and investment, with an accompanying rapid increase in consumer wealth and purchasing power.”
     Kiang said trends such as increasing urbanization, the greater use of 3D printing production, and changing inventory management systems would continue to provide a challenging backdrop for the logistics industry, which was also threatened by climate change and cyber-attacks.
     “In the middle of all these changes, FIATA continues to play an important role in addressing the challenges faced by all of you,” he said. “By representing national logistics associations across 150 countries worldwide, FIATA is able to give the logistics industry a strong, unified voice in dealing with worldwide regulatory bodies or other organizations that directly impact the logistics industry and the global economy at large.”
     Brian Lovell, (right) CEO of the Australian Federation of International Forwarders Ltd, praised the organization of this year’s Congress. “The Congress always provides delegates with a prime opportunity to exchange ideas around complex international freight logistics issues,” he said. “It is also a forum to hear the plans and direction for some of the solutions. As expected the Singapore Logistics Association, together with FIATA, organized a first class event.”
     The benefits of exhibiting at the World Congress this year were outlined by a host of executives, many of them based in Singapore. Parag Wankhede, director presales at SCMProfit, a Singapore-based software firm, said his company had made a number of new contacts at the show. “We would definitely attend FIATA again,” he added.
     Lewis Lim, sales executive at feeder company Megastar Shipping, said his sector was highly competitive, so meeting new forwarders and shippers at FIATA offered “a major boost.”
     Tiraporn Boonpracang, part of the customer service team at Worldwide Information Network, said the company had found more users for its platform at the World Congress. “We’ve been releasing new software to connect different systems and there has been a lot of interest,” she added.
     Stanley Lim, (right) Immediate Past President of FIATA, said that in a rapidly changing global trade environment, the contacts and contracts secured at FIATA events were mutually beneficial to members. He pledged his organization would continue to improve industry standards and look at new ways to expand its professional training programs.
     “It is very timely that the annual event is held in Singapore, nestled in the Asia Pacific region, where the economic pulses are at the moment,” he said. “Ample business opportunities to be explored, new business models to be experimented, new grounds to be entered, new possibilities to be envisaged – there is more than enough room for everyone.”
     Mr. Lui Tuck Yew, Singapore Minister for Transport, Singapore, said FIATA had been playing a pivotal role for almost a century on a wide range of issues affecting the transport industry, including compliance. He said it was fitting that a logistics hub like Singapore was the setting for FIATA and IATA to come together to discuss new programs designed to improve global trade and bring new levels of efficiency to the logistics sector.
     “This year’s FIATA World Congress has enjoyed a strong turnout with worldwide representation,” added Kiang. “I am pleased that Singapore, as host, has provided a valuable platform for discussing shared issues, networking, and establishing new partnerships amongst the delegates.”
SkyKing


nd Flying Typers has him!
The first air cargo journalist, Richard Malkin wrote and edited the publication Air Transportation, which began in 1942 and later covered The Berlin Airlift. Malkin singlehandedly invented modern air cargo journalism, so it is to all our benefit that he returns next week at 100+ years of age to continue his landmark “Richard Malkin At Large,” exclusively in FlyingTypers.


Above (L to R) flanked by TT Club's EMEA Regional Director, Andrew Kemp on the left and FIATA President Stanley Lim on the right are this year’s winners: Ms Janna Van Burgeler, Germany; Mr Kaloyan Petrov, Canada; Mr Mohamed Samy, Egypt and Mr Prabhot Singh, India.

     The Yiffy Awards are a smart and nice touch to the FIATA annual event.
     Janna van Burgeler from Germany is the 2013 Young International Freight Forwarder of the Year.
     Rather than write a check supporting some far-off institution, FIATA brings tomorrow to the event today, as The Young Freight Forwarder of the Year Award recognizes the next generation in a contest wherein candidates write a dissertation about a shipping challenge.
     YIFFY is open to young freight forwarders (30 years of age or less) who have been working full-time in the forwarding industry for at least two years.
     Each FIATA member can nominate one person to participate.
     The award (in addition to getting your mug in FlyingTypers) includes two weeks of practical and academic training, one week of academic training in London, and one week of practical training based in one of the TT Club's regional centers in London, Hong Kong, or New Jersey.
     Congratulations to Janna on YIFFY!


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    Saudi Airlines Cargo said recent signing of an interline agreement with Zimbabwe-based AV Cargo Airlines opens up four new destinations: Bamako, Freetown, Pointe-Noire, and Ouagadougou in West Africa, via the SV cargo hub in Lagos.
    Moving forward, cargo now carried on Saudia B747 freighter services into the Lagos hub will make onward connections aboard AV Cargo wide-body freighter aircraft.
    “The cooperation with AV Cargo makes our hub in Lagos more attractive,” said Peter Scholten, VP Commercial at Saudia Cargo.
    “It’s a fantastic opportunity for both airlines to extend their networks in a complementary manner, benefiting from the strengths of one another,” concurred Simon Clarke, (above) CEO AV Cargo.

    Paul Mott, ATC’s Manager Cargo for Egyptair, told Flying Typers that air cargo service and flight levels from USA to Egypt “remain unaffected” even as reports of civil unrest continue.
    “We have heard some concern from our agent partners reading headlines that Egyptair may be canceling flights.
    “That is simply not the case.
    “Egyptair continues to operate a full schedule and the hub in Cairo is actually functioning quite well.
    “Bookings are open and cargo is moving in a regular and uninterrupted manner from U.S. points to Cairo and to points beyond,” Mott assured. “In fact, we have recently added staff and resources at our Egyptair office in New York, including Arabic speaking operations staff. This is really helping with the improvement in the quality of the service we are offering.”
    ATC Aviation operates two offices at New York’s JFK International Airport. Its Egyptair Cargo office is managed by long time JFK and industry veteran Paul Mott, who has been with the company since retiring from SAS Cargo, where he spent 30 years in sales and operations in New York for the Scandinavian carrier.
    Customers seeking further information or bookings can reach Paul Mott in New York at 718.553.0689 or Paul@platinumaircargo.net or ATC’s U.S. booking center at 877.262.2746.

 





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