Performance Not Promises

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   Vol. 16 No. 12
Friday February 3, 2017


CNS Takes Air Cargo Main Deck

     “Without a doubt,” Cargo Network Services (CNS) President Lionel van der Walt declares, “The year 2017 will bring unprecedented change in USA.
“It’s still unclear how all this change will unfold and impact our industry.
      “As with most things, I expect some of it will be to our benefit and some will not.”

       
Change Is Opportunity

      “Personally, I believe that with change comes opportunity.
      “The challenge, especially with change that initially appears to have a negative impact on us, is to identify the underlying opportunities that invariably lie hidden below the surface.
      “I agree full-heartedly with Tom Friedman, who writes:
      “‘America still has the right stuff to thrive. The U.S. still has the most creative, diverse, innovative culture and open society, in a world where the ability to imagine and generate new ideas with speed and to implement them through global collaboration is the most important competitive advantage.’”

Air Cargo Awareness Campaign

      “The importance of our sector and its impact on the U.S. economy and GDP is unquestionable.
      “So for 2017, we are taking a proactive leadership role at CNS.
      “Right now Team CNS is at work developing an awareness campaign that targets both government officials as well as end consumers in the U.S.
      “CNS believes consumers are just as important to focus on as our Air Cargo Aware effort and government decision makers.”

       
No More Taking Air Cargo For Granted

      “Most end consumers,” Lionel insists, “especially newer generations that will play a key role in the future of our country, hardly ever give much thought to the critical role air cargo plays in their daily lives, such as the clothing they wear, the electronic goods they rely on, the health care they and their loved ones depend on, the concerts and sporting events they enjoy, the fresh foods they rely on, the flowers they send on special occasions, and the list goes on.”

Pushing The Right Buttons

      “In 2017 in many parts of the world, daily needs are available at the push of a button or a short trip to the local store.
      “Little to no thought is given across the spectrum to the fact that these goods and services have been made possible by an intricate air cargo value chain that operates twenty four hours a day to ensure these products and services are all available, all the time.
      “As an industry, we need to ensure that everyone sees this hidden value and understands how different their lives would be if this value chain did not exist.”

       
Awareness Starts At The Airport

      “It always amazes me how many people transit through our major gateways such as MIA, JFK, LAX, ORD, etc. and don’t know that a few feet away from them there is a frenzy of air cargo activity taking place.
      “Even more so when in the air—literally below their feet tons of goods are being transported, but they have no clue it is there.
      “At CNS we intend to change this situation with some new thinking and outreach!”

Change Is In The Air

      “CNS proposes an awareness effort focused toward government that will underscore the value that air cargo delivers in the U.S. at a national level, and a deep dish, ongoing look into the value that air cargo brings at a regional level.
      “Our effort will target key air cargo hubs such as MIA, JFK, ORD, LAX, etc.
      “In our view, each of these locations has a separate air cargo personality/identity that will be emphasized as part of the campaign. “For example, MIA is the U.S.’s fresh produce and pharma hub.
      “We want to collaborate closely with the respective airport authorities and air cargo associations to ensure that our messaging, statistics, etc. are accurate and aligned with their respective business strategies. In parallel with this, we will be working to develop an effective communications and media strategy to ensure that our target audience will see these messages and any interested parties will have access to the information.”

The Vision Thing

      “The vision is to have a portal where we build interest in our industry and where people can freely access and retrieve information.
      “The CNS mission in 2017 and beyond is to advocate for positive change in our industry.
      “In terms of the consumer campaign, we intend to develop key messaging that once again ties into the respective airport’s ‘personalities,’ raising awareness and hopefully touching the heartstrings of consumers.”

       
Air Cargo On The Main Deck

      “Our communication channel is purposed to make the air cargo key message visible in and around passenger areas at airports, e.g. video messages on monitors, posters along walkways and on pillars, etc.
      “We will also aim to target airport and inflight magazines.
      “Here, the primary objective is about awareness; to enlighten consumers to ‘see & learn’ about our industry as never before.
      “What air cargo delivers and what our business means—including the value of providing local jobs, value of goods transported etc.—will highlight this effort.

Passion For Air Cargo

      “Never before in my lifetime have I had the privilege to work with such passionate, committed, and innovative colleagues,” Lionel assures.
      “I have no doubt that with continued cross industry collaboration we are well positioned to capitalize on the opportunities that await us in 2017.”

       
Feels The Need To Educate

      “One thing is certain, though, the role of CNS and its various industry association partners as educators and influencers is going to be more critical than ever.
      “With all this change it is going to be imperative that regulators understand what is at stake when they are making decisions, many of which will impact both directly and indirectly on our value chain.
      “Understanding is the common thread across all decisions that will be made this year; we need to ensure that decision makers are aware of and understand the significant value that air cargo delivers and how their strategies will affect this critical value chain.
      “To be sure, the vital role of air cargo is not always as apparent to regulators and decision makers as one might think, so there is an import role for us to play here.
      “We need to ensure that they get our information and are factoring air cargo in a true light into their decisions.”

       
The Global Conduit Is A Driver of Life

      “Air cargo is a conduit for global and U.S. trade, supporting and creating millions of jobs.
      “IATA says, globally, when measured by value, over a third of internationally traded goods (35 percent) get to market by air.
      “That percentage adds up to $6.8 trillion of goods being transported by air.
      “Another report underscores that in the U.S., air cargo transports over $ 1.7 trillion worth of goods, approximately 39 percent of U.S. trade by value, and supports approximately 21 million jobs.”

       
Looking For A Few Collaborations

      “CNS welcomes anybody who might be interested in collaborating with us on this project, Lionel declares.
      “FlyingTypers readers are welcome to get in touch with CNS, be it airports, local associations, service providers, etc.
      “This is a collaborative project and we are open to hearing what people think about it. We are also currently looking for investment partners that will help us cover costs.
      “Any interested parties can contact me directly at lvanderwalt@cnsc.us or on my direct line at the office at: 786-413-1010.”

CNS Partnership Conference 2017

      “Our upcoming annual CNS Partnership Conference, which is scheduled to take place in Orlando, Florida, April 30th-May 2nd, promises to be a real humdinger,” Lionel said.
      “We have a packed agenda that is focused on preparing the industry for tomorrow’s reality and changes.
      “Sessions include a shippers’ panel moderated by Roger Spoel, Policy Manager at the European Shippers Council, economic updates delivered by IATA’s senior economist, George Anjaparidze and Managing Director at Logistics Capital & Strategy LLC Brian Clancy, a session on the future of sea freight and its impact on the air cargo industry by Michel Looten, Director Maritime at Seabury Group, and what I expect to be a very informative panel discussion on cargo industry transformation, moderated by Glyn Hughes, Global Head of Cargo at IATA.”

       
The Usual Suspects

      Panels include respected thought leaders and well known industry people such as John Dodero, Vice President of Engineering at UPS, Zvi Schreiber, CEO at Freightos, Eytan Sheetrit, CEO at CargoMatrix Inc., and Zeke Ziliak, Executive Account Manager at PROS, Inc.
      “An impressive lineup will undoubtedly stimulate much discussion!”
      CNS Partnership Conference information found here.

CNS Mini-Me March Gatherings

      “We’ve extended an invitation to all to join us at our upcoming Technology and Data Quality Mini Conference scheduled to take place in Miami, March 1st-2nd.
      “That event is focused on airlines, government, ground handlers, IT providers, and trucking companies.
      “Our look at Data Quality is designed to provide a unique platform for industry professionals with a stake in e-Cargo to learn and implement best practices for data accuracy and efficient transmission of electronic messages.
      “Takeaway for delegates include the latest thinking in terms of standards, business processes, and IT solutions.
      “Data Quality content will touch on key subjects impacting practitioners that are implementing e-AWB, as well as the upcoming U.S. Customs and Border Protection implementation of mandatory electronic export in ACE in 2017 as well as TSA’s ACAS program.”

eAWB Forwarders On The Half Shell

      “Later that same week, we are hosting a forwarders’ eAWB Data Quality Workshop at the same location in Miami.
      “CNS has tailored two sessions on Friday, March 3rd, specifically for freight forwarders.
      “Participants will have the opportunity to learn best practices for data quality in the world of electronic messaging as well as correct and accurate issuance of an FWB (MAWB), FZB (HAWB), and Electronic Consignment Security Declaration (e-CSD), amongst others.
      “Arnaud Lambert, IATA’s Cargo Business Intelligence subject matter expert, will be lead these sessions,” Lionel van der Walt concluded.

       
Constant Contact

      “Space is limited for both events,” Lionel reports.
      Details of the mini-conference and the forwarder eAWB Data Quality Workshops can be viewed here.

Geoffrey


Chuckles For February 3, 2017

DFW Finds Missing Lynx   Dallas Fort Worth International (DFW) Airport will soon install a cold chain facility, operational this summer. AirLogistix USA will operate the new facility.
   “The DFW gateway has the advantage of being located in the central United States, which helped drive our expansion into North Texas,” Ray Brimble, President and CEO of Lynxs Group, owner of AirLogistix USA, told FT.
   “We look forward to working with all airlines that serve DFW.
   “Our facility will be available to distributors and forwarders who need to keep their perishable and temperature-sensitive goods cool during shipping, with particular emphasis on transit through the airport. We are ready to get started at DFW.”
Ray Brimble on Supply Chain Middle Mile.


They say the best things in life are free. One look at the joy and friendship in this picture, taken almost twenty years ago, will confirm that. Networking at the second CNS Partnership Conference in Dallas are (L to R) first CNS President Jack Lindsay, second CNS President Anthony (Tony) Calabrese, and original CNS Board Members Brian Barrow and Buz Whalen, with American Airlines CEO Robert Crandall.

     As Cargo Network Services (CNS) gathered in 2015for its 25th Annual “Partnership Conference,” in Orlando, Florida, a private survey of a representative group of air freight forwarders and cargo agents disclosed the existence of widespread doubts in IATA’s core adherence to the principle of the airline-intermediary “partnership.”
     Respondents largely indicated that the turnaround in forwarder/agent opinion deepened as a direct loss of independent authority and action, and the organization’s reduction to just another IATA unit.
     Over the past quarter-century, the annual CNS partnership conferences have gained worldwide prominence. As seen by most of the interviewees, the “partnership” had tilted in favor of the air carriers.


Present At The Creation

     A quarter-century ago, I was invited by the sparkling new Cargo Network Service to contribute my experience to determine an answer to a vexing question: Should CNS, or should it not, invest time, effort and money in mounting a truly first-class air cargo conference? With the approval of CNS president Jack Lindsay, the invitation had been extended by Anthony P. Calabrese, then director of product development, who was aware of my intimacy with the industry’s growing number of cargo conferences. I agreed to cooperate—but before I continue with this report, I find it necessary to outline the air cargo industry landscape at that time. The scheduled airlines’ long-delayed awakening of the shipper as an important source of revenue was enriched by their flair for promotional ideas and public relations. Not much time passed before one of the carriers invited a section of the shipping public—forwarders, air cargo agents, industrial traffic managers and purchasing agents—to a luncheon meeting where they would be treated to a lesson in air cargo economics as well as to a tasty portion of roast beef.
     Competitor airlines gradually followed with their own versions of satisfying appetites while getting across a hard sell.
     It took a while, but as these meetings became longer, more detailed, and more sophisticated productions, I gradually became aware that something was amiss: In virtually every instance, the airline representatives in the audience seriously outnumbered the customer attendees.
     I editorialized on the problem. Didn’t the lopsided audience division matter to the carriers? Were they delivering the right message from the platform? What confined the users’ response to disappointing limits? The few readers who bothered to answer failed to cast convincing light on the puzzle.
     Tony Calabrese was one of my oldest and closest friends in the industry. Our nexus, I think, was a shared love of classical music. Typically, when we sat down with cups of coffee to discuss the unfairness of an IATA rule or recent breakpoints on electronic goods, it would wind up with criticism of a conductor’s use of his baton or on concert artists’ foibles. This time, with Jack Lindsay present at our meeting at CNS’ offices, Tony came right to the reason for the meeting without the usual preliminary formalities: On the basis of my wide experience, what is my personal reaction to a proposal to sponsor an annual air cargo conference that would take it around the country?


I Told You So

     “Oh, no,” I groaned, and I proceeded to repeat my argument especially when travel expenses and hotel fees were involved. I predicted failure, and I foresaw myself saying to Tony, “I told you so.”
     Tony was unfazed by my opposition, arguing that CNS’ built-in membership of several thousand agents represented a live pool of prospects. There existed an area of common interest and values. I cited the example of the Civil Aeronautics Board’s sponsorship of the one-day air cargo conferences scheduled in as many as six cities throughout the United States.
     After the third meeting, appalled by the paucity of active interest on the customer side, the board cancelled the remaining shows. In Chicago, with John C. Emery, Jr. as featured speaker, the meeting’s sponsor was forced to resort to an invitation to a local business school’s transportation and export students to fill vacant seats.
     Tony was probably aware of these incidents. In his calm, evenly stated way, he bore down on his confidence in the CNS agents’ homegrown support. This was basic. There were, too, the forwarders and shippers.
     In the end, Lindsay (after whose retirement a couple of years later Tony was to succeed as CNS president) went along with Tony, and the first of Partnership Conferences was born. Over the years the Partnership Conference, which sprang from Tony’s fertile mind, was recognized as one of the world industry’s best.
     During the closing hours of the initial meeting, Tony and I were sitting next to each other at a dinner table. We chatted about the day’s highlights. He had an idea that he wanted to implement next year, and before he could get into the details, he was interrupted by an aide who handed him a sheet of paper. Tony glanced at it briefly, smiled, then the smile broadened into a grin.
     “Customer attendance 18% over airline attendance.”
     Whereupon he leaned over to me and sweetly whispered in to my ear, “I told you so.”
Richard Malkin

Richard Malkin

malkin101@aircargonews.com


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RE: The Importance Of Jan Meurer

Dear Geoffrey,

     It's been a very, very long time since we were in contact last.
Time certainly goes by.
     As you might know, I retired from Cargolux back in the late 90's and have since enjoyed life as a retiree back in my home country, Denmark.
     But I still keep an eye on the air cargo industry and especially I have become involved in facilitating the industry's transition from fossil fuels and unto sustainable, renewable alternative fuels - also called biofuels.
     It's in my view a vital move for the aviation industry in order to survive in the long term future in order to reduce it's CO2/GHG emissions!
     I noted in a recent Flying Typers edition, which by the way I very much enjoy reading, that you had a coverage Jan Meurer, Jacques Ancher, Pieter Bouw and William Althen, all old buddies from my
time with Cargolux.
     Nice going.
     Keep up the good work.

Yours sincerely,
Robert
Robert Arendal
Cargolux Retired

Fuel Flights visual

     Alternative fuels . . . Many talk of them, but actually who is flying them?
     Here, our longtime friend and colleague, the great Robert Arendal, illuminates where in the world flights operated with a limited (but it’s a beginning!) blend of SJFs (Sustainable Jet Fuels).
     “In Europe,” Robert writes, “it’s mainly flights out of Oslo and to a lesser extent out of Stockholm, while in the U.S., it's UAL flights out of Los Angeles.”
     Stay tuned . . .


Publisher-Geoffrey Arend Managing Editor-Flossie Arend
Film Editor-Ralph Arend Special Assignments-Sabiha Arend, Emily Arend Advertising Sales-Judy Miller

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