“By operating direct freighter flights into Malpensa we are offering first class connections from our entire network including Hong Kong, China, Bangladesh, and India, right to the industrial center of Italy, thus proving our commitment to the Italian market,” said CEO Saudi Airlines Cargo Company Nabil Khojah. Saudia Cargo added thrice-weekly B747 freighters from Riyadh to Milano Malpensa Airport today, Monday January 12.

AfA Board Of Directors at UA headquarters in Chicago.

     You may not know much about the Air Forwarders Association (AfA), but certainly almost everybody knows of the group’s president, Brandon Fried.
     Brandon Fried seems to be everywhere and can be considered amongst the longest-lasting opinion makers in the air cargo industry; he is easily the most vocal and well-known forwarder anywhere.
     Of all the associations (and people operating them) out there, the one absolutely vital link in the chain are the freight forwarders.
     Into the equation comes this rather compact and busy man who can most often be found either up on Capitol Hill, a short distance from his office in Washington, D.C., or writing a guest editorial defending an association or the forwarders’ point of view.
     Brandon can also be found conducting sessions at any one—or seemingly all of—the trade shows.
     Brandon Fried is always out there at one air cargo club after another, delivering a keynote or pushing his or the industry’s agenda at monthly meetings in Atlanta, New York, or east Timbuktu.
     Brandon Fried, like the weather, is always there.
     The idea that you can “lift air cargo everywhere, almost all at once” is wonderfully quixotic, and there is no one else who does it better than Brandon Fried.
     So as 2015 begins, Brandon makes the case, and as usual the esteemed Mr. Fried is not at a loss for words.

FT:   What is the main focus of the AfA March 6 New Orleans Annual Event and what does the AfA and its members in general view as the major challenges in 2015?
BF:   It’s really the one time of the year that the air forwarding industry gets together – and it’s the one opportunity that forwarders have to network with a large cross-section of their industry colleagues, learn what others are doing and get a good snapshot of where the industry is going. We put a premium on learning and education, and anyone who attends is going to come out of it with a boost in their knowledge and their contacts. I am a believer in the proposition that for a forwarding business to be successful, sticking to your knitting is important but you also have to have a good deal of industry awareness, and this event is a good way to get that.
     As for as the major challenges, in a nutshell I would say that our agenda will focus on upcoming advanced data regulations, e-commerce, technology, upcoming new export and import regulations, legal concerns and of course, a new update to the TSA security program for forwarders.

FT:   Are you satisfied with progress on e-AWB and the continued integration of paperless cargo? Where do you expect your membership to be at the close of business in 2015 in terms of implementation? Any suggestions as to how the industry can advance or accelerate that process?
BF:   No, I’m not satisfied yet. While the concept is sound and while we wholeheartedly share the overall goal, the various actors in air cargo simply have to get past the finger pointing and sit down together and develop sound solutions that can work for all the players regardless of size. One size does not fit all and forwarders come in all shapes, sizes and with varying degrees of financial resources. I am optimistic we can get to a level of productive dialogue, because electronic document transmission adoption is an obvious and essential component for air cargo’s future success as an industry. Our members know it and look forward to working with their airline partners in harmonizing messaging standards and protocols to expedite its implementation.

FT:   Do you think freight forwarders get enough respect? What are the most common misunderstandings about the role of forwarders?
BF:   Respect? Are you kidding? The other day I told my wife that everyone hates me. She said I was being ridiculous; everyone hadn’t met me yet. Seriously though, for the most part, I believe that yes, absolutely, forwarders get the respect they deserve. Oh sure, there are always a few luddites who seem to think it’s wise to blame their customers, the forwarders, for their own problems and shortcomings. But in the main, most recognize the important role forwarders play in increasingly complex and regulated supply chains. I feel they know the value that we bring to the table and they trust us to deliver that value.

FT:   What has AfA done for its membership during the past 12 months? Why should a forwarding company join and also why should members be more active in AfA?
BF:   An insider once told me that in Washington politics, you are either at the table or you are on the table. So our association has worked to make sure we are out in front of issues impacting freight forwarders. Politicians will say anything and if you are not there to provide a strong voice, they can legislate you out of business. For instance, the governor of New York recently talked about a plan to revitalize the three New York area airports and in so doing he indicated that it would move passenger cargo operations to Stewart airport, 85 miles to the north. Any forwarder who works in the New York City market and has operations near JFK knows that’s not advisable or even workable. And if they did try to do that we all know it would be devastating to our businesses and to the metro area’s economy at large. But what was needed was an organization to carry that message to the public and to their representatives in government. And the AfA did that. We got our message out. The prospects that we will be part of the eventual solution to the miserable condition of New York City’s airports are higher than they were before. We are engaging the governor’s office now and will continue to do so until their plan is clarified.
     Overall, when it comes to policy, we've been more active this year than ever before, engaging in a wide range of issues that affect our members. Given that our members are largely multi-modal, we have followed the West Coast port labor slowdown, written letters and joined efforts to convince the Obama administration to send federal mediators to resolve the situation.
     We’ve testified before Congress about forwarders using privatized canines for cargo screening. In fact it was largely due to our awareness raising efforts on Capitol Hill that the hearing was even held.
     We’ve also been active in monitoring the constantly changing lithium battery regulatory issue. We’ve weighed in on trucking rules, focused attention on highway infrastructure funding, established best e-freight practices for forwarders, worked with CBP in developing the advanced data screening initiative, and endorsed trade liberalization agreements. It has been a busy year and we don’t expect things to let up in 2015.
     Let me give you a quick example of why it is important for air forwarders to be a part of the AfA. Around mid-year, we got word from a couple of our members that they had been notified that the U.S. Census Bureau was planning to eliminate the Carnet exemption, something that could impose a huge cost burden on freight forwarders who facilitate temporary shipments that are intended to be removed from the country they have recently entered - items like trade show goods, conference supplies, museum displays and equipment for film, TV, sports and musical tours.
     We looked into it with our government relations expert and found out that it was true – and, what’s more, we got an indication that the Bureau didn’t really understand exactly what it was doing or the harm this would cause. So we gathered up more information from our members and worked with CBP's Office of Field Operations, other stakeholders and Congressional staff to get the Bureau to reverse course – and the exemption stayed in place. In an industry like ours, you really have to have an association working on your behalf.
     We also provide member education, not only with an increasing amount of online course offerings, but an active webinar schedule focusing on changing export regulations, employee compensation, lithium battery rules, the electronic single window Presidential Executive Order to name a few. AfA members receive frequent communication and consequently are a sophisticated, well-informed group

FT:   What are some changes the forwarders would like to see in the air cargo business? Suggest how together everyone might lift the industry even further?
BF:   More freight! Oh, and let’s rein in the seemingly endless waves of new regulation. One new rule here and another new rule there; the cumulative impact is really stifling the business climate. For the rules that are on the books, or being seriously considered, we need to work with government agencies, legislative bodies and multilateral organizations in assuring that they are harmonized with other countries.

FT:   What does your membership tell you about the lot of women in cargo? How many women-run businesses are members of AfA. Do you detect any fundamental change in the industry to include an agenda such as the Delta-led initiative at the annual AfA event?
BF:   Women are increasingly playing a leading role in the freight forwarding industry and our association is reflective of the trend. The AfA Board of Directors reflects this trend, as 40 percent of our Directors, including the incoming President, are women.
     While we do not specifically ask for gender information when determining the ownership of our member companies, a significant amount of leadership contacts are women and this has steadily been increasing each year.
     Also, our annual Women’s Networking Event continues to increase in popularity each year and we are looking forward to it again at AirCargo 2015 New Orleans.

“My favorite constituents,” Brandon insists, Evan, Jordan and wife Kimberly Fried. Stayin’ Alive on the ATL tarmac with vintage B707 in earlier Qantas livery that belongs to superstar John Travolta.

FT:   How did you come to leadership at AfA? What is your background? What are you most proud of in your work? How long have you been at AfA and how long do you plan to continue?
BF:   As a kid I came to love anything airplane or airline related, so working at an airfreight company in the summers while in high school in Miami exposed me to the industry. After graduating with a Public Policy degree from Syracuse University, I moved to Los Angeles and learned the air cargo business while working for another freight forwarder before moving to Washington. I then owned and operated a freight forwarding company in the Washington DC area for 25 years before selling the business and being invited to assume the executive directorship role of the AfA.
     Since I was educated in regulatory and public policy engagement, this background combined with my passion for the freight forwarding industry made me ideally suited for my role within AfA. This has been a great job that has allowed me to travel around the world, working with a dynamic group of Board Directors and members who are as impassioned about the business as I am. I began this job almost ten years ago and look forward to continuing my work well into the future. I think our members can sense how much fun I am having and that helps them feel good about actively participating in association business and activities.

FT:   If you, Brandon Fried, could change a few things in air cargo like some kind of genie what would those things be?
BF:   I would reduce the regulatory clutter that has resulted in response to the security concerns arising out of the 9/11 attacks. So many rules were drafted before 100 percent physical screening of cargo became law and many of those regulations are still on the books, contributing little or nothing to security. Perhaps I would reframe the debate over the known shipper requirement since all cargo is physically screened before flying on passenger planes. This and other outdated rules need to be reexamined as they continue to cost our members revenue and business opportunities against other transport modes.

FT:   Who do you admire?
BF:   I have had the privilege of being around some of the best and brightest people in the business and continue to learn from their wisdom daily. I cannot name them all but people including AfA Chairman Richard Fisher of Falcon Globaledge (pictured here inspecting the Boeing 787 with Brandon), Jo Frigger of EMO Trans, Ray Curtis of Delta Airlines, Matt Buckley of Southwest and Bruce Campbell from Forward Air come to mind. Of course, the AfA Board members are a terrific group of professionals and I admire them all.
     But probably the individual I admire most in the air cargo industry would be Fred Smith from FedEx. Aside from my father, Fred Smith has always been a personal hero as his accomplishments helped to create the market awareness and success our industry enjoys today.

FT:   Any surprises in 2014? What is your view of the next few years ahead? How can we all be more successful?
BF:   There were not too many surprises last year but I fear that those ahead may be full of more unnecessary regulation that could adversely impact our industry. TSA gets a new administrator beginning in 2015 and we hope the risk-based approach to cargo security continues. The new Congress could bring many challenges concerning important areas in highway infrastructure funding, sort out air traffic control, and lithium battery regulations to name a few. However, trade liberalization agreements will hopefully get passed that will result in more cargo between countries.
     We can all be more successful by engaging regulators to promote common sense laws, working with each other to advance the electronic commerce initiative and pursuing industry education that not only improves our performance but trains the new crop of logistics professionals interested in becoming part of this vital industry.
Geoffrey

RE:  Way To Go Dick Tracy

Dear Geoffrey,

     While being aware of Yogi Berra’s maxim “It’s tough to make predictions, especially about the future,” I feel it only fair to write in defense of IATA’s forecasting record for air cargo.
     In your recent article Way to Go, Dick Tracy you suggested that IATA’s view a year ago was that the outlook for cargo in 2014 was “flat”. In fact this was not the case. Our December 2013 forecast for 2014 was for FTK growth of 2.1%, a healthy acceleration on a disappointing 2013. To be sure, we underestimated the strength of air cargo, which in fact expanded by 4.3%, but nevertheless we were correct in the broad thrust of our forecast.
     Our December 2014 outlook suggests that FTKs could grow 4.5% this year, and nothing would please us more than if this also turns out to be an underestimation. It remains the case, however, that air cargo revenues are $5 billion lower than in 2011 and that yields are set to fall for the 4th year running. So there is still a “way to go” before the industry can truly be said to be back where it belongs.
     I wish you and the FlyingTypers team a happy and prosperous 2015,

Chris Goater
Manager, Corporate Communications
International Air Transport Association

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