On May 31, 1926, 15 freight forwarder associations met in Vienna, Austria, to form FIATA. In 2016, FIATA is the largest freight forwarder organization in the world.      This week conferees gather in Dublin, Ireland, for the Annual FIATA World Congress to celebrate 90 years of FIATA. Founding member companies will be presented Founding Members Certificates at a special gala event that includes a grand reception at the beautiful, 18th century Trinity Dining Hall on the campus of Trinity College.

      A Really Big Show—On Friday, October 7, at the Congress, IATA and FIATA will sign an historic pact that will usher in a new era of closer cooperation between two major forces in air cargo.
      The Congress is hosted by The Irish International Freight Association( IIFA), the sole representative body and official voice of freight forwarding in Ireland. IFFA was originally established at a meeting held on March 14, 1962, with an attendance of just thirteen forwarders. In 2016 IIFA has grown to include 110 full trading members that employ more than 3,000 people and handle more than 90 percent of Ireland’s €148 billion international merchandise trade.
      Members of the Irish International Freight Association brief FIATA Director General Marco Sorgetti (second from left), also in the picture from left are Seamus Kavanagh, Paddy Kenny, William Cress, and Tom Thornton.
      Here Rodolfo Sagel, Chairman of the FIATA Airfreight Institute, offers a brief overview of FIATA in modern times:

      Today’s international trade demands the traded goods arrive just in time—safely, securely, in an increasingly sustainable manner, and, more than ever, at reasonable costs.
      Economic factors are not just keywords; they set the new ‘norm’ throughout the logistics industry, so the air freight industry must learn how to address these changes in a landscape of increasing competition with other modes of transport.

Shippers Take The Heat

      Shippers have been under pressure to cut distribution costs.
      However, airfreight remains indispensable and is the best choice—if not always the cheapest solution—of transport for higher values and smaller quantities.
      Sensitive cargo also prefers the air.
      As the air cargo industry increases its importance, so does the need for skilled freight forwarders able to cope with the high pressures of delivering goods in a customer oriented or customized manner.
      Freight forwarders thrive at skillfully answering their clients’ needs and consistently delivering the best combination of price and quality.

Forward To Some Important Points

      Today, thanks to a more efficient routing network and logistics instruments, the exporter’s goods may become more competitive in new markets.
      Freight forwarders offer a large variety of value-added services, as contained in the description of services published on the FIATA website. This has been an evolution of many years.
      Now an increasing need to deal with the complexity of more and more stringent safety and security requirements adds another layer to this complex, years-long evolution.
      Forwarders meet these challenges through the use of contemporary methodologies, techniques, and precious know-how.
      The forwarder serves the global trade by procuring added value, which goes far wider than only arranging for international transportation and Customs.
      The forwarder has become in recent years the main facilitator of international trade and is thus placed at the heart of international trade of goods.

After The Fall

      Since the 2008 financial crisis, the air cargo industry has been stagnant and has experienced very little, if any growth.
      FIATA takes the view that newer avenues of collaboration must be explored and both freight forwarders and airlines must become more forward thinking in their collaboration.
      We need to make the right investments in technology, especially in the development of eCommerce tools, and adopt less cumbersome and less costly modus operandi.
      There still is too much bureaucracy and paper surrounding the air cargo supply chain.

Tip Of The Hat From IATA

      In 2013, the International Air Transport Association (IATA) acknowledged freight forwarders’ functional change and recognized that they are an integral part of a sector that successfully transports goods worth $5.3 trillion every year.
      IATA understands the importance of working with FIATA to achieve greater efficiency for all partners in this crucial business.
      The then-IATA Director General Mr. Tony Tyler alluded to the critical role that freight forwarding plays within the air cargo industry when he spoke at the 2013 FIATA World Congress in Singapore.
      Many of FIATA’s practitioners do not utilize only air transport, as FIATA is well represented in all modes, but it is unquestionable that airfreight is paramount in the development of the international trade. Mr. Tyler’s message intelligently explored all the areas that are susceptible to producing greater efficiencies in the industry, increased savings, and a more effective approach to security and facilitation.
      He identified the opportunity of enhanced collaboration with FIATA as an element that could be crucial to the success of both organizations.
      Inter alia, Mr. Tyler stated:
      “That’s our common case for working together to deliver fundamental changes that will protect air cargo’s value proposition to its customers. Instead of talking about how we divide the pie amongst ourselves, we need to focus on how we can best grow the size of the pie together. I am here today to reassure you of IATA’s commitment to work in partnership to deliver the solutions that will secure the future for air cargo.”

Who We Are Today & Tomorrow

      FIATA consists of small, medium, and big freight forwarding companies in an increasingly competitive market.
      Focusing on efficiency and win-win situations for all involved business partners goes in line with reasonable investments that both forwarders and airlines are called to make in the near future, inter alia in the area of paperless trade.
      Today the air cargo supply chain is so interconnected that no single party has the resources to expand autonomously.
      This is just a fact of life and all must learn to live with it.
      The importance of the air freight sector is constantly monitored by FIATA. FIATA’s Air Freight Institute (AFI) has developed ongoing relationships with an exceptional number of stakeholders in the air transport industry, from non-governmental organizations, special interest groups, government bodies, regulators, carriers, shippers, consignors, customs groups, legal specialists, cargo risk underwriters, and technology providers.
      It is a complex galaxy of interests where FIATA has a crucial role and never sits idly.
      From this position it can greatly contribute to the improvement of air cargo throughout the world and it does do so gladly and effectively.
      FIATA also works closely with other air cargo industry interests and is part of GACAG, which will be led by FIATA in 2017-2018.
      GACAG is advocating on behalf of air cargo, in global air cargo security, e-commerce, customs and trade facilitation, and the sustainability of the air cargo industry.
      On top of FIATA’s advocacy efforts, we also deliver a dangerous goods by air training program in cooperation with the International Civil Aviation Organization (ICAO).
      FIATA, alongside ICAO, strongly believe in the benefits of training as a means to ensure a sustainable and secure industry future. This is but one of the initiatives in training, which is traditionally one of the strongholds for FIATA.

Better Relations Grow Business

Our constituents strongly believe that the relationship between airlines and freight forwarders is crucial for trade.
      The efficient delivery of airfreight services is unavailable without a well-functioning relationship between airlines and freight forwarders.
      This is, however in need of profound changes, which are felt by all FIATA members and a number of airlines.
      This was the reason FIATA and IATA had worked for more than four year’s on the air cargo modernization program. The spirit of that endeavor was supported by Tony Tyler’s words in Singapore:
      “We need a modernized relationship that helps build trust and treats the Forwarder-Airline relationship as a partnership of equals.
      “That will lead to the enhanced cooperation that will help industry adapt to the momentous changes it faces.
      “This is a modernization path with many facets, where technology will also play an important part.”
      On July 18, 2016, I announced the completion of the program agreement with these words:
      “The Cargo Agency Program has long needed updating. I am really pleased that FIATA and IATA have joined forces to provide our industry with a new, modern program and a framework for operation that benefits both airlines and freight forwarders. IFACP will eliminate unnecessary administrative procedures and costs as well as free up valuable resources to tackle the complex challenges that today’s global trade presents. These include regulatory compliance, safety and security, and the introduction of new technologies. This agreement paves the way for a more successful future for the fastest and most fascinating mode of international transport.”
      I maintain that this says it all.

   On October 1, Emirates added two daily A380 services—Dubai to Guangzhou, China, and Dubai to Moscow, Russia—joining more than 40 Emirates A380 destination cities.
   The new dailies come hard on the heels of last month’s introduction of a brand new purpose-built facility dedicated to the transport of temperature sensitive pharmaceutical shipments via Dubai World Central Airport (DWC).
   IQPC was well attended by key supply chain executives including representatives from pharmaceutical companies, suppliers and manufacturers of cool chain equipment, 3PL logistics providers and airlines.
   Early reports are that folks attending the 14th Annual Cold Chain & Temperature Logistics Global Forum from September 26-30 at Hynes Convention Center welcomed the EK cold-chain offering.
   Shippers were introduced to the the carrier’s dedicated cold-chain capabilities for Pharma, easily accessed via the carrier’s multiple U.S. gateways, including BOS, where the carrier has offered a growing menu of B777 services non-stop to Dubai since 2014.
   EK had already set some kind of record moving lobsters via its cold chain from Massachusetts to Dubai and several other destinations via its UAE gateway.
   But now it’s also about pharma, and EK says it has what it takes.
   “Pharmaceuticals are one of the most important products we transport because of the impact on people’s lives and communities across the world,” said Nabil Sultan, Emirates Divisional Senior Vice President, Cargo.

Pictured in Boston at the Cold Chain Logistics Global Forum are left to right, Julian Sutch, Manager Global Sales Pharma - Emirates SkyCargo; Bert Jorritsma, Manager Special Cargo Service Delivery - Emirates SkyCargo; Prakash K. Nair - Manager Network Cargo Sales Development - Emirates SkyCargo and Brendan M. Furlong, Cargo Sales Manager Global Accounts, The Americas - Emirates SkyCargo.

     The Hanjin bankruptcy has resulted in financial hardship for many companies and caused turmoil and time delays throughout the supply chain.
      On August 31, Hanjin Shipping announced it had filed for bankruptcy. It is the largest bankruptcy in the shipping industry in recent years.
      Hanjin owned 37 containerships and chartered 62 others, making it the world’s seventh largest container shipping line, which represents about 3.2 percent of the global container shipping capacity with more than 623,000 TEU of shipping capacity disrupted.
      FlyingTypers, like everyone else in the shipping world, has been following the Hanjin story as it continues to unfold.
      To explore details of the impact the Hanjin bankruptcy has had on the ground, we reached out to Jo Frigger, CEO of EMO Trans.
      EMO Trans operates a network of more than 250 locations in 120 countries.  
      “Many Hanjin ships around the world were stopped at sea, and others were stranded in ports, unable to discharge their cargo,” Mr. Frigger said.
      “Some Hanjin vendors charged additional costs as they were understandably concerned that the steamship line would not pay their bills.
      “As a result, containers were held hostage, only to be released against immediate payment.
      “This practice often resulted in duplicate charges.
      “Fortunately, the EMO Trans Ocean teams quickly pinpointed the location of our freight and immediately initiated the release process.
      “Hopefully, this ongoing situation will end soon.
      “Afterward, it is unclear how much of the overcharges can be recovered, but our priority is to deliver the goods to our customers as soon as we are able.  
      “It is difficult to determine whether the Hanjin disaster will result in a more balanced price structure among the carriers that allows them to operate on a profitable level, but it is clear that many ocean, air, and truck carriers are suffering from reduced pricing caused by overcapacity.
      “In an interesting development, Maersk Lines has decided not to build new ships, but rather try to grow through mergers and acquisitions that will not increase the global fleet.
      “I think this is a smart business move,” Jo Frigger said.
Geoffrey Arend

Vol. 15 No. 75
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Some Good News For A Change
Partnership To Thwart EvilJacqueline Casini Takes Charge