It may be a case of saving the best for last, or putting the meat of the order under too much gravy, but an air cargo gathering this week could raise some interesting and unusual dialogue.
     While it may not be as dramatic as you might think, when high-powered and well-compensated executives meet in a public arena the encounter can be enlightening and even carry with it some entertainment value.
     When Brandon Fried, President of the Washington, D.C,-based Air Forwarders Association (AFA), meets center stage this week in San Antonio, Texas, on the last day of Cargo Network Services (CNS) Annual Partnership Conference with IATA DG Tony Tyler, the question is whether sparks will fly to ignite any real change in the airline/forwarder dynamic.
     Don’t be surprised if that encounter is more about soft balls than anything else.
     After all, CNS has long been a relaxed, genteel gathering (at least in terms of confrontation). Taking place at golf resorts every year, with the airlines basically footing the bill for, among other things, superb networking, luncheons, and face time with customers, the hope is that change will gather momentum as it is the last industry event of any significance until the autumn.
     But never in recent memory has a top forwarder been in direct dialogue with a representative of the airlines at this event. The opportunity is present to ask some questions and follow ups confronting long standing issues that cut both ways amongst the “partners” that CNS was chartered to bring closer—the airlines and the forwarders.
     When it comes to air cargo, IATA continues to be in some disarray as 2014 continues.
     While the IATA passenger side leadership seems stable and follows a predictable pattern, for air cargo there has been a new leader—either at CNS or as IATA head of cargo—at every turn recently.
     When, as expected, IATA names a new Head of Cargo later this year to replace Des Vertannes, the global airline organization will have advanced its third top executive to that post in just the past five years.
     Named just four years ago after a lifetime as a journeyman air cargo executive, Vertannes without warning resigned in March on the heels of World Cargo Symposium “to spend more time with his family.”
     Tony Tyler notably was not present at WCS, despite an event that included most every global airline head of cargo meeting at a critical time.
     The task of reporting and fronting the IATA agenda was left to what turned out to be a lame duck IATA head of cargo as Vertannes retired two weeks after WCS.
     CNS, on the other hand, having named airport marketing expert Warren Jones to its top post as CNS President last year, has itself fielded four different Presidents since 2006.
     Not exactly the kind of long-term leadership CNS was used to after being founded as a mostly hands-off IATA “Special Interest group,” with Tony Calabrese (a former air forwarder) serving non-stop as President from 1986-2006.

Warren Above All S/H

     But if “Big” Warren Jones (he stands six feet, six inches tall) is worried about any of this, the easy going, likeable, new top dog at CNS seems to be taking each day in stride.
     Just back from the TIACA AGM in Istanbul two weeks ago, where he was hospitalized with a horrible flu from which he is thankfully recovering, Warren spoke to FT to share his hopes and objectives as CNS gathers this week.

FT:   CNS Partnership opens today. Can you describe what is in store and why air cargo industry stakeholders will attend?
WJ:   This will be the 24th year of the CNS Partnership Conference and every year we just build onto what we have learned from the year before. This year, our conference theme is changing the game and our goal is to provide attendees with information on how the changes in air cargo are transforming the way we all do business. From the great panel discussions to great networking events, you will not be disappointed.
FT:   Describe some of the sessions topics. What should attendees be prepared to talk about?
WJ:   The CNS team has lined up some great speakers, including a great shippers panel to discuss what they need from freight forwarders and airlines. We will have a regulatory update and also additional information on the eAWB and how that is progressing here in the U.S. Also included this year is a great session on the CNS/IATA training programs, where we intend to show the value our training programs are creating. To wrap up our speakers, we will have Tony Tyler participate in an on-stage Q&A session, with Brandon Fried, Executive Dir. of the Airfreight Forwarders’ Association as the interviewer. I am sure that will provide some insight on IATA’s Cargo initiatives around the world, why air cargo is so important, and what it means to our way of life.
FT:   You spoke of a different approach to at least one evening gathering, which would include a different, “formal look.” Can you share the set up, why it was chosen, and what attendees can expect? Is it all right to wear cowboy boots with a tux, just like a real Texan?
WJ:   The gala dinner has been changed to a gala event. Working with Panalpina and DHL as our sponsors for the gala night, we designed an event so that at the end of the night, attendees will say, “Wow!” Black tie is optional, as sometimes people just like to dress up from our normal business attire. And yes, you can wear cowboy boots; I plan to.
FT:   Last year at CNS you were pulled out from the airport business into the limelight and a central role in the airline/forwarder dynamic. What has that experience been like? What surprised you? Have you chosen some goals and objectives that you will focus upon? Have your years at ATL in cargo marketing been helpful in approaching and implementing your program at CNS?
WJ:   It's been an amazing first year at CNS and I have the honor and privilege of working with some of the top air cargo people in the business. We have set in motion a lot of new programs, from our eAWB campaign to creating a job postings site on our website to help those who want to find jobs. We have launched a CNS scholarship fund where we intend to award $10,000 dollars to three deserving students at the CNS Partnership Conference. And more importantly, we are bringing more awareness to the industry and the value of air cargo.
FT:   Given all the hard work and dedication of you and your team, what would you like the takeaway to be for attendees and your team as well? What do you hope to learn from the very first industry event on your watch, CNS Partnership 2014?
WJ:   One of the goals for this Partnership Conference is to bring in more first time attendees, including more of the mid-size and smaller forwarders. The Partnership Conference does so much more than providing panel discussions and great evening events. It provides an opportunity for people to meet and network and start friendships that can last a lifetime.
Geoffrey/Flossie

(With Geoffrey in San Antonio)—As CNS Partnership takes off today in San Antonio, Texas, and conferees are gathering from all across the country and around the world under a blanket of deep blue, south central Texas skies, Robbie Anderson, President United Cargo delivers a message that is upbeat, realistic, and in tune with the future.
   “Since 2014 began, we’ve been upfront in stating that our goal is to regain our customers’ trust and to recapture the business that migrated elsewhere during our past technological and vendor partner transitions.
   “We’ve had significant success in bringing our volumes back, though we’re still challenged by the difficult rate environment brought on by chronic overcapacity.”

The Value Proposition

   “Our team is also examining our unique value proposition: in other words, what qualities and benefits do we bring to the market that cause customers to choose United Cargo?
   “This is a crucial internal process that has resulted in a reinforcement of our strengths and an awareness of where we need to develop.”

Control Towers Above All

   “We’re very pleased with the operation of, and the customer feedback to, our new Control Tower for TempControl shipments.
   “Having a dedicated team delivering proactive shipment updates and serving as the single point of contact for every facet of the shipment increases the customer’s peace of mind and sense of—I hesitate to say it—‘control’ over these invaluable commodities,” Robbie smiles.
   “The Control Tower is one part of an overall strategy of developing our TempControl service.
   “The global, cross-functional effort involves our Training, Operational, and Sales teams to ensure we can respond quickly to customers who require creative solutions for temperature-sensitive transport.”

Business Up To The Minute

   “It’s encouraging to observe the healthy year-over-year growth in worldwide cargo volumes in the first few months of 2014, but disheartening to note that available capacity is rising right along with the tonnage.
   “In terms of products and commodities, we continue to be encouraged by the success of our TempControl business.
   “This is a focus for us, both in terms of increasing the number of markets we serve and enhancing customer service. Among the 10 additional TempControl cities we plan to certify in 2014, we will announce Lima later this month and Delhi and Mumbai soon after.
   “Once again, our Control Tower approach to service is proving a distinct contributor to this product’s growth.”


B787s Driving Positive Response

   “We are experiencing consistent healthy cargo volumes on our flights out of Europe.
   “Our flights from China also continue to be strong performers, and we anticipate very positive response to the launch of Boeing 787 service between San Francisco and Chengdu, China, in June.
   “The opening of this market represents the first service by a U.S. airline to mainland China beyond Beijing and Shanghai.
   “Chengdu is an excellent example of the type of market that becomes economically feasible if serviced by the 787, where it might not be on other widebody aircraft.
   “Los Angeles-Tokyo is a market currently operated with 787 aircraft that is performing well for our cargo business.
   “We also plan to offer nonstop 787 service between Los Angeles and Melbourne, Australia, six times weekly beginning October 26.”


Rap Around UC360

   “It’s very gratifying to report that the functionality of our UC360° system, and our utilization of its capabilities, is improving every day.
   “The system is built on a leading-edge technological foundation, and we’re implementing a series of code releases to enhance its features and functionality as the year progresses.
   “One of the most personally satisfying benefits of the UC360° system is that it enables United Cargo to fully support and participate in the e-freight initiative and contribute to the achievement of IATA’s goal of 22 percent penetration of the e-airway bill in 2014.”

Traction Toward e-AWB

   “Many folks have heard me say that when I left the cargo industry in 2005, e-freight and the push toward ‘less paper’ was a topic of high focus.
   “When I came back in 2010, the focus was still there but there hadn’t been much progress.
   “Now, with the multi-lateral e-airway bill agreement in place and definite, reachable targets established, I can say I sense unmistakable traction and momentum toward the goal.”

About Leadership & Next Gen

   “In my view, the most important quality of an effective leader is a genuine concern about the people on your team.
   “From this concern, you develop an interest in helping them determine where they want to take their careers, then a passion to help them fulfill their aspirations.
   “I think I speak for my industry colleagues when I say we have the talent to lead the air cargo industry to a new level of future prosperity already working on our teams.
   “It’s up to current leaders to nurture this talent, encourage their innovative ideas and keep them excited about the unlimited possibilities in our industry.”

Keen On The Environment

   “The air cargo industry’s level of interest and engagement in environmental and sustainability issues has never been higher.
   “There’s a pervasive awareness that these issues will have an increasing impact on our business and a pragmatic understanding that cooperative efforts are essential.
   “In the future, we will either be confronting a patchwork of conflicting regulations and programs, or we will be managing a framework built on multi-lateral cooperation that can lead to real progress toward the desired outcome of reduced carbon emissions.
   “It’s my sense that our industry understands our actions and can make a real difference in the regulatory environment in the near-term, and the earth’s environment in the long-term.”
Geoffrey/Flossie

Click Here To Read Intro

Click Here To Read Part I

Click Here To Read Part II

Click Here To Read Part III

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