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Family Aid 2020
   Vol. 20 No. 37
Wednesday September 29, 2021

Cargo LAX Goes From Bad To Worse

Peter Lamy

     “As the ports of Los Angeles and Long Beach go from bad to worse we now have LAX at a near breaking point with airfreight storage in some cases costing at 24 hours after arrival in excess of $1.00 kg per day.
     “Hang on as this is going to get much more chaotic before it gets better.”
The speaker is Peter Lamy, President of Intelligent Supply Chain Management (iSCM) and American Worldwide Agencies (AWA) based in Hawthorne, California.
     Peter Lamy was raised in the cargo industry—his father, the late Donald Lamy was an air cargo pioneer as North American Director of Air New Zealand Cargo.
Peter took his first airline job on the ramp of Flying Tigers in the early ’80s. Over the years, he has managed airline cargo operations at the LAX airport for carriers such as Braniff, Amerijet, and Aeromexico.
     “We have seen this all unfolding in slow motion over the last 12 months, forwarders have been struggling to shield their customers from the reality of limited space, increase demand and increasing costs.
     “While retailers,” Peter said, “knew there have been issues they seem to only be hitting the panic button now.
     “Like the seaports we now have our international cargo airports in total disarray and over capacity with little or no off airport CFS’s to offer any relief.
     “Also as airline ground handlers implement those aforementioned storage charges has come huge risk to handling import air cargo for non-asset-based forwarders.
     “What can be done is going to be a struggle, we just don’t have the cargo facilities in place to absorb the influx of cargo at our passenger airports.
     “In terms of looking for other facilities, for years these offline airports that were once military bases have tried to convert all cargo aircraft over to the facilities but have had limited success with the exception of carriers like FedEx, UPS, and now Prime Air (Amazon) the new logistics gorilla.
     “But former military facilities just don’t have the bonded capabilities and customs support needed to flick the switch and start accepting international cargo flights.
     “We think government could help ease the situation by allowing U.S. Customs to expedite cargo clearance and bonded facilities available away from traditional ports of entry as one solution.
     “We have no problems with the TSA, we have adapted to their requirements over the years and work closely with them with our CCSF that allows us to control our freight by consolidating and building ULD’s at our own facilities. While others ran away from the responsibility, we charged in the other direction by expanding our warehouses and our screening capabilities.
     “Too many forwarders have become brokers and abandoned their responsibilities of actually handling their cargo, as forwarders retreated to ivory towers and eliminated warehouses and trucks all while Amazon, FedEx and UPS keep investing in these assets and controlling their destiny. We at ISCM have taken a similar approach as the integrators, and opened our own facilities around the world,” Peter Lamy concluded.

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