Bozena Multack is Senior Regional Performance Manager Cargo Operations EMEI for United Airlines Cargo.
     She is a striking presence—tall, angular, and in charge as she strides into the lobby of Intercity Hotel in Cargo City SUD Frankfurt for an early morning appointment.
      It’s about the purpose and way she moves, and the bright smile that radiates a sense of excitement for the future.
      No doubt, we have been wondering how this Poland native made the transition into air cargo.
      Right away she makes it clear that her drive—just like her walk—is determined and directed to reaching for the brass ring.
      After just a few minutes of conversation, it is quite clear that Boenza is on the ride of her life and enjoying every minute of it.
      “I began my career at United Cargo by actually moving over from ULD provider Jettainer,” she said.
      “United made a decision after a five-year contract with that company to insource the containers and asked me to join the airline.
      “My mission was to put together a logistics group within United to manage all aspects of global ULD activity.
      “It was a great adventure and it all took place from UA headquarters in Chicago.
      “Working out of Willis Tower, we began from scratch and built a program that we think is a benchmark for the business.
      “Those two years were a thrilling experience, developing many new skills while hiring team members and designing processes from the ground up.
      “I was able to create something of my very own, something that was meant to drive advantages to the airline and our customers and at the same time I got to broaden my horizons—a very thrilling proposition indeed,” Bozena said.
      “Of course, what we accomplished was due to great leadership at UA, but at the same time there was a fantastic level of trust.”

Born To Fly

      Bozena Multack studied Aeronautical Science at The Embry Riddle University in Miami, Florida.
      “I have a minor in aviation safety and also another minor in aviation business, and part of that involved studies in supply chain management,” she said.
      “I am also a certified pilot and have about 800 hours in private aircraft.
      “Flight training was part of my degree, but I also fly for fun.
      “I guess I have always had a love of the airline business,” Bozena smiled.
      Bozena Multack is the youngest of nine children in a first generation family that emigrated from Poland to Chicago.
      “The one thing Mom and Dad told me is to respect work ethics.
      “I was taught from childhood that every job means something, and that has driven my ambition to work and advance both my company and life.
      “After completing two years setting up UA Cargo ULD, I decided to shift gears and spent an additional two years working with a team at UA called ‘operations innovation.’
      “I worked with an inspired group of people that went from department to department at the airline, first studying procedures, policies, and the like, then searching for improvements,” she said.

Based At Cargo City Sud

      These days, Bozena Multack is based at Building 579C in the heart of Frankfurt Cargo in Germany.
      From that vantage point, she gets a head start in delivering a product offering from UA that is increasingly capturing the imagination of the global shipping public.
      Although she doesn’t come right out and say it, at times Bozena serves as a fireman, on the scene to put out any fires that arise anywhere in her service area, which includes Europe, Middle East, or India.
      While we talk her cell-phone performs its vibrating “pick me up” dance on the table.
      Bozena answers it and says:
      “Yes, but the appointment isn’t until 1400 this afternoon,” confirming what sounds like a customer concern appointment later that day.
      In any case, as she speaks we get the feeling that nothing is ignored in the shipping process world of Bozena.

Market Savvy Is Key

      “Knowing the market is key.”
      “For example, in Amsterdam the problem might be trucking. So we rely on our team members to assess the situation and report to us so that we can come up with the solution together.
      “From my centralized vantage point, I can move the pieces.
      “Interestingly, every case, whether routine or something completely new, adds to the encyclopedia of skills and solutions that can work anywhere else.
      “I view our business partners as an extension of myself.
      “Their success is my success.
      “So if they are doing well, I am too.
      “In other words, making things work better always adds up.”

Education Is Integral To The Future

      As for what air cargo can do better, without hesitation Bozena proclaims:
      “Cargo is not agile—regulations and a lack of information are the culprits, I think.
      “As an industry we to invest in people.
      “I would recommend that everyone in air cargo advance their education in all aspects of this business.
      “Today there are a multitude of specialized courses being offered both in university and online and also via training specialists that can better equip both current and next generation cargo people to better prepare them to handle the future.
      “Study laterally and learn as much as you can about these giant companies driving air cargo and be better equipped through true understanding to advance our industry ahead,” Bozena declares.

Off Time

      “I read a lot. That includes almost anything I can get my hands on, including a good book.
      “I stay centered whether on or off the job by mediation at the beginning of everyday, and also as often as needed,” she smiles.
      “I love air cargo for its dynamism and vibrancy.
      “Here we have opportunity and challenge a-plenty.”
Geoffrey/Sabiha

Editors Note: As noted here, TIACA ACF 2016 meets in Paris next week. Undoubtedly, plenty of bright ideas and big thinking will run up and down the halls of the Port de Versailles Expo Center, the showplace for the event.
     But before all of that begins, here are some thoughts to jumpstart the conversation and networking, advanced by some air cargo veterans and smart thinkers gathered under the banner of The Boston Consulting Group, a global management consulting firm and advisor on business strategy.
More: www.bcg.com 

     In recent years, air cargo industry profitability has experienced the ups and downs of the global economy, disruption by new players, and changing customer demands. Cargo volumes and prices saw a low point during the financial crisis and although volumes are recovering, yields remain depressed. This in turn has resulted in many mixed airlines prioritizing the passenger side of business even further, and therefore limiting investments in cargo. The combination of disruption and customer value drivers changing with lower (and in many cases misplaced) investments led to many airlines falling behind, dragged down by obsolete business models and paradigms.
      Before we look to what the future holds, let us step back to the late 1990s, when airlines, both mixed carriers and all cargo carriers, focused on building global networks dominated by their own metal flying the skies from European hubs to Chicago to Shanghai and Nairobi. This was an asset-heavy business model and airlines plowed billions of dollars into new and converted aircraft, keeping the production lines at Everett and the passenger-to-freighter conversion lines booked years into the future. In this context, airlines used their global networks and price as levers to grow volumes.
      Growing demand and a stable yield environment resulted in several good years, but as the industry conditions changed for the worse, the air cargo industry was caught flat-footed and the downside of this asset-heavy business model became all too clear. Increased volatility in the market led to major operating difficulties, yield and volume drops, and ultimately heavy losses. Bankruptcies and massive restructuring followed, which saw many of the venerable names in the industry either disappear or dramatically changed in terms of business model and commercial approach.
      Moreover, as belly capacity grew with the introduction of new aircraft types with ‘big bellies,’ prices came under additional pressure as cargo was effectively offered at marginal cost. Belly capacity quickly captured market share in many trade lanes under this competitive pricing advantage. Carriers heavily invested in freighters were at times slow in recognizing this shift and continued relying on network and geography as key barriers to entry. The emergence of Middle Eastern carriers proved this paradigm wrong based on price competition and rapid capacity growth in both belly and full freighter aircraft, with high quality of service.
      While pricing pressure remains for general cargo, higher margin products present opportunities. For example, Pharma companies are willing to pay premiums for live monitoring and proactive adjustment of cargo conditions. New investments are already fulfilling the needs of this segment, such as integrators launching dedicated white glove Life Sciences and Healthcare products.
      Others such as large network carriers are catching up with heavy investments in state-of-the-art facilities for temperature-controlled cargo in their hubs. Pharmaceuticals are just the frontrunners, however. Soon special demands, especially with regards to tracking, customization, and convenience will become the norm for general cargo as well.
      Carriers who fail to recognize the need for investment in technological and digital capabilities will miss the opportunity to capture this emerging market and its pricing premiums, and risk falling further behind.
      Newer disruptions go beyond simple evolution of the traditional air cargo business model. External players have stepped into the air cargo playing field by integrating the value chain and taking air cargo shipping into their own hands.
      E-commerce is one such example; carriers took for granted its growth as a reliable opportunity to increase air cargo volumes. However, barriers between B2B and B2C are increasingly blurred as Amazon has taken a significant lead on this front with an aim to own their supply chain and no longer rely on traditional carriers. Initially, the air cargo industry was under the impression that Amazon was solely using freighters for high density routes. But seeing as they now have contracts for up to approximately 60 aircraft, have assembled a formidable ground operation in all densely populated areas of the U.S., and have bought no fewer than three freight forwarders and trucking companies in Europe, it is becoming increasingly apparent that an attempt to get leverage has resulted in becoming the fourth largest integrator, and they are growing at a much faster rate than the Big 3.
      Similarly, a startup called Flexport, whose mission is to become the Uber of freight forwarding, recently secured USD 65 million in funding after 2 years of trying to shake up that part of the value chain.

Some examples of potential disruptions in the air cargo value chain.

Estimated share of online distribution for select categories

     For some time now, we have wondered why the Air Forwarders Association (AfA) in the U.S. has not joined FIATA.
      Among other attributes, FIATA offers the finest menu of training programs in the world.
      We asked the genial, effusive President of AfA, Brandon Fried, “Is the time nigh for U.S. forwarders with AfA backing to join FIATA?"
      Brandon kindly replied:
      “We have been considering the FIATA value proposition for some time as its (FIATA) annual dues are substantial and our limited funding is spent on dealing with the numerous U.S. alphabet agencies and our friends on Capitol Hill.
      “That said, AfA sees clear value in FIATA and its educational offerings and will continue reviewing possible joining opportunities.
      “We also are ready and look forward to participating with FIATA in its endeavors, assisting the organization whenever possible,” Brandon concluded.
      Moving ahead, as the combined IATA/FIATA logo becomes the worldwide signature recognizing the new cooperative state between airlines and forwarders, with an oversight board of IATA airlines and FIATA forwarders sitting in the middle of industry action, it seems to us that if U.S. forwarders want a voice in all of this, they need a seat at the table.
      Your move.
Geoffrey

Vol. 15 No. 81
TIACA Grand Spectacle á Paris
Happy Landings Always, Dear Leevi
Three 911s