Vol. 9 No. 125                                                  WE COVER THE WORLD                                 Wednesday November 17, 2010

     Well, the genie is out of the bottle – Dr. Otto stepped on the toothpaste tube at this year’s CNS, and in its wake there has been encouraging feedback from our readers, Dr. Otto himself, Oliver Evans, Angelo Pusateri, Guenter Rohrmann, Isaac Nijankin, and Buz Whalen, just to name a few. Wait – we almost forgot IATA; they responded too, except that it has been by means of a deafening silence. From an organization not exactly known for being press reticent, that is rather strange.
     Having gotten the ball rolling, it’s time to attempt to summarize, albeit prematurely: clearly IATA is not and has not been the focal point here. The discussion is about airline cargo and freight forwarder representatives exploring new ways of cooperation that can best serve their common needs and interests, ways that will fall outside the box, leapfrogging the collective baggage accumulated over the past 25 years.
     I cannot peek into Dr. Otto’s mind to even try to interpret what he has been thinking; therefore, it’s best to stick to what he said this past May in his keynote speech – to paraphrase – ‘a joint airline/forwarder formulation of industry concerns in political forums is essential.’ He saw CNS well positioned in such a role and suggested the CNS unique model extended to other countries.
     We can all read into this as much or as little as we want, colored by everyone’s point of view, background, priorities and experience. What I find compelling is an apparent convergence of issues bubbling up to the surface at the same time. Direct airline cargo and forwarders’ representation, minus the meddlesome and self-serving services and hijacking of the agenda by organizations such as IATA, is clearly an objective. An open forum for discussion is what CNS used to provide and that, at least on the surface, is all Mr. Evans expects - networking. That is a very different take.
     Some perspective may be in order – CNS was founded in 1985 following the 1984 revocation of antitrust immunity for IATA in the United States. What that meant at the time was that matters governed by IATA agency resolutions were illegal from that point on. The intention was for CNS to be operated at arms’ length from IATA. This included the provision of services to airlines and forwarders, which were available elsewhere within the agency, in particular the CASS framework. A few other things differentiated CNS – it worked with non-IATA airlines as well as with non-IATA accredited agents.
     What has not been news were the persistent encroachment attempts by IATA over time. Breaking off CNS and taking it global has some history and depending on who tells the story, allegedly the forwarders would have gone for it but the airlines were reluctant.
     Trying to look at the 2010 CNS through the 1985 “arms’ length” from IATA construct, one can only conclude the DOJ antitrust folks must have been way too busy chasing fuel surcharge infractions of late. For example, under “Services” CNS lists:
          • CASS USA
          • Cargo2000
          • E-freight
          • CASS USA Business Intelligence
     That is not even a thinly veiled page taken out of the IATA book; it is the IATA agenda writ large. CASS and e-freight have been driven by conference resolutions and as such, verboten in the USA since 1985.      Contrary to its inception, airlines, forwarders and GHA are now represented only on the CNS advisory board, with the Board of Directors consisting exclusively of IATA executives, essentially co-opted. Slowly, slowly catchy monkey.
     Yet at least the agency agreements are between airlines and forwarders in the US; the forwarder community elsewhere has recognized the need for a new relationship, one that is not governed by IATA dictate. With the real value of accreditation being questioned by forwarders, the search for an effective representative body has thus arisen independently in both the carrier and forwarder executive minds and it is being expressed openly.
Before alternatives can be seriously considered, one would indeed be well served to determine the exact objectives and results carriers and forwarders wish to achieve. If the past is any indication of the future, the debate will not be easy and certainly not short. It really all depends on expectations, and there is hope those will be expressed clearly and mutually agreed upon.
     The settlement mechanism could be provided by a number of global banks such as Citicorp and the cost negotiated.
     As national and regional security regimes are being vigorously enforced in the U.S., Canada, Europe and elsewhere, the new denomination is independently validated “agent and accredited shipper.”
     This year, there are two milestone events, which may shed some light on a future direction – the TIACA-hosted ACF in Amsterdam in early November and the FIATA World Congress in Bangkok a month earlier.
     Other than starting from scratch, some of the options that have been kicked around are variations on a theme:
          • A greenfield project
          • A “globalized” CNS
          • TIACA
          • An empowered IFCC (IATA/FIATA consultative council)
          • IATA sticking to its only mandate, which is to represent airlines or a radical governance change that would allow forwarders, GHA, GSA to vote and thus truly represent the air cargo supply chain.
      Tournament brackets are often seen in sports; send us your best guess for which of the five options will come out on top – and which you would most like to see on top.
Ted Braun

Reprinted from Air Cargo News 35th Annoiversary Issue Part I. For More Click Here.


Giving Thanks With Harold

     This Friday, November 19 in Atlanta, Georgia a grand airport tradition occurs once again as an air cargo entrepreneur reaches out far and wide to host several hundred people to an old fashioned home made turkey dinner with all the trimmings, as America looks ahead one week from now to celebrate the wonderful holiday called Thanksgiving.
     Thanksgiving is the great day when the only thing that matters is family and the meal.
     But behind the ATL airport community open house is one of the great people that we have met during our 35 years covering this beat—Harold Hagans (pictured here).
     Hagans is an ex-military man who not only honors America, but also passes on what he knows and goes out of his way to help and support the ATL airport community. Right now Harold is Chairman of the Board at The Atlanta Air Cargo Association (AACA), which has once again been selected by Air Cargo News/Flying Typers in 2007 as Best Air Cargo Club In the World.
     When, as expected, TIACA announces that Atlanta, Georgia will host its Forum Trade Show for 2012, it will certainly be in part because of people like Harold and the wonderful membership of AACA.
     But one other thing Harold Hagans knows about as a true Southern Gentleman is preparing a meal out of turkey, the favorite food in America this time of year. While nearly everybody else puts the bird into an oven, Harold digs back into the past and sets up a unique and imaginative deep-frying operation for turkey right inside his ATL air cargo facility. He then throws open the doors and invites the neighbors in to deliver a little bite of heaven.
     “We love to do this, to show our appreciation and share our good fortune at Thanksgiving with others,” Harold says.
     “Frying the turkey seals in the flavor and juices and makes the bird crisp and delicious.
     “While many are now using this method, we also fix up our poultry with special herbs and rubs handed down in my family over the years.”
     Harold Hagans has served as chairman of the International Committee for Clayton County and as President of Atlanta Customs Brokers & International Freight Forwarders, which was selected as the international business of the year in 1995 and again in 2001 by the Chamber of Commerce. He holds a Bachelor's Degree in Business Administration and Criminal Justice from Columbia.
     In addition to teaching international import and export classes for Mercer University and Perimeter College, he has also served as instructor for Dale Carnegie.
     His past credits include serving on the Atlanta International Committee, acting as Chairman Vice President of the Terminals Committee for Hartsfield International Airport and President of the Customs Brokers and Freight Forwarders Association of Atlanta.
     “My employees and colleagues in air cargo are my family,” he says.
     “I am here early every morning because we handle such a broad variety of specialized shipments.
     “Our business in Atlanta has been greatly enhanced by the ability to utilize the excellent perishables center here.
     “We move unusual cargo that others shy away from by offering several value-added features, including fumigation, on site Customs and Department of Agriculture, and other services in a one-stop arrangement.
     “Everything we do at ACB begins as hands on total service.
     “So every day I start early and make my rounds.
     “For example, twice weekly we move more than three million worms for two companies up north." I often wonder who counts all those worms?
     Harold Hagans is what this business is all about, or at least, it ought to be. It is arguable that if Mr. Hagan’s had never done much else, his willingness to act as mentor to scores of air cargo people that now span generations would have qualified him as one of the all time greats in the history of world air cargo transportation.
     The offices of ACB are efficient, warm and friendly. The place, by any measure, is both beautiful, bright clean and comfortable. They make you think, “Anybody who takes this kind of pride in his place, is surely going to be good to ship with.”
     But Harold Hagans takes things farther.
     In addition to serious business, he seems to know a lot about the stuff he is shipping. Inside the handling facility and warehouse, three tons of coffee sit next to pallets of flavored chips used to smoke meat. Elsewhere sits a big consignment from Mongolia, resting easily with a Lotus racecar bound for South America. Several boxes from Africa filled with stuffed rare animals are about to be cleared by Customs.
     “You should have seen that stuffed gorilla that just left here,” one of the girls laughs. “Talk about big!”
     But back to what matters now—frying turkey.
     “One of the ‘musts’ to get things right is our use of peanut oil.”
     “We started out a few years ago with three of our folks here eating a peanut butter sandwich,” Harold smiles.
     “That small group has grown to some 200-250 people consuming a fried turkey lunch.
     “It’s a real open house and everyone should drop in, eat until your hands get tired and have some fun.”
     Harold and his crew will be opening up the facilities at Atlanta Customs Brokers on November 19, 2010, from 12:00-2:30 hrs.
     Atlanta Customs Brokers. Tel: 404-762-0953, Cell: 678-414-6817. acbiff@atlantacustomsbrokers.com www.atlantacustomsbrokers.com


 Pictured (l to r) Antero Lahtinen President AY Cargo with Tony LaRusso Finnair Director Cargo The Americas. Finnair returns all-cargo flights between Finland and North America offering weekly Friday MD11F service from New York (JFK) to Helsinki (HEL) beginning November 19.

     Finnair Cargo adds weekly all cargo MD11F HEL-JFK-HEL beginning Friday, November19. AY8865 goes HEL 13:55, arrives JFK16:40; AY8866 goes JFK 21:00 arrives HEL11:05+1.
     We are pleased and excited to reintroduce our USA shippers to Finnair all cargo services.
     “It feels good to be back flying cargo in our own metal,” said Anthony “Tony” LaRusso, Cargo Director the Americas from his office at JFK.
     “The day five frequency brings needed lift to the market and fits nicely with our recently introduced all-cargo services from HEL to (ICN) Seoul and (HKG) Hong Kong.”
      More info: Anthony LaRusso Cargo Bldg. # 151 - Cargo Area "A" Office: 718-656-7663 Mobile: 646-372-2151.
e-mail: anthony.larusso@finnair.com

Click To Read
35th Anniversary Issue

At TIACA Up Close & Personal


Scanning Thanksgiving

   Now comes the uproar, as full body scanners move into place at several U.S. destinations, with many more to follow.
   Air travel is changing again, but this time many seem less than enthusiastic to accept these new rules sitting down—or standing up!
   But as always, some people can find something to laugh about.
Click Image to View.


Lufthansa Charter Adds to Team

     “With Murray Gregg and Lloyd D’souza, our management team is once again complete.
     “They bring fresh ideas to the company, and with their long-standing experience and excellent contacts in the global air cargo industry, they will complement our Lufthansa Cargo Charter team perfectly,” said Reto R. Hunziker, Managing Director.
     Murray Gregg (right) named as General Manager Asia Pacific, based in Hong Kong, and Lloyd Aubin D’souza (left) named General Manager for the Middle East and the Indian Subcontinent, based in Dubai.


Clipper Cargo Returns Sort Of

     In an effort to gain some attention for operations at its new base in Brownsville, Texas—a Chicago based outfit World-Wide Consolidated Logistics Inc,. and its President Robert Hedrick says that it is naming its air operation Pan American Airways Clipper Cargo. Pan Am Airways Clipper will fly again in 2011.
     For now however the famous “blue meatball” logo still belongs to an outfit in New Hampshire, USA that purchased same from bankruptcy court a few years back, the last time someone attempted to revive the once mighty carrier that ceased operations in 1991.
     This latest Pan Am reincarnation claims the reopening of a "Gateway to Latin America" from Brownsville, Texas.
     The “new” Pan American Airways says it has set up its headquarters in the same place where in 1931 the original Pan American Airways that turned out to be at one time the world’s largest carrier of mail and air cargo once operated a station.
     So now a forgotten air address called The Brownsville South Padre Island International Airport has a legendary name in the airline air cargo business.
     Robert L. Hedrick, President of World-Wide is upbeat:
     “In 2011, Pan American Airways will fly 70 cargo flights a month from Brownsville, Texas to destinations in Latin America with the final destination being Rio de Janeiro.
     “These flights are "cargo only" designed for the large cargo shipper.
“World-Wide Consolidated Logistics, Inc., opened a TSA Certified Cargo Screening Facility (September 15, 2010) at the Brownsville South Padre Island International Airport.
     “The facility is available to other air cargo charter companies, Hedrick declared.
     Direct line for more info:(956) 203-5299.
     World-Wide Consolidated Logistics Inc., according to one report selected Brownsville to move products around the world for its sister company, World-Wide Aquatics Inc. that ships resort swimming pools, fountains and other aquatics equipment to locations around the world, from Egypt, Greece and Costa Rica to Dubai and Liberia.
     “World-Wide Logistics, which is hoping to attract other air freight businesses to take its routes, is designating its transportation hub in Palo Verde, off of the North African coast, and is planning on housing several cargo planes at Brownsville/South Padre International,” wrote The Brownsville Herald this past June 2010.
     “The company has mapped 70 routes through the airport into Latin America, terminating in Rio de Janeiro Brazil,” the newspaper said.


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