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Family Aid 2020
   Vol. 20 No. 24
Wednesday June 23, 2021

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Air Cargo Needs The Curveball

As if it were not enough, that the Transportation Security Administration (TSA) has a lot of people chasing their tails including importers, exporters, carriers, and freight forwarders ahead of that International Civil Aviation Organization (ICAO) security edict that takes effect June 30th for 100% screening of all international all-cargo flights, well look again.
     Now almost at the eleventh hour, TSA says it is looking for a few good men or women—men and women manufacturers, shippers, suppliers, warehouses, vendors, third-party logistics providers and e-commerce fulfillment centers in the air cargo supply chain to become an Indirect Air Carrier (IAC) and then a Secured Packing Facility (SPF).
     “SPFs must apply security controls to secure cargo that moves through the supply chain destined for outbound international locations onboard all-cargo aircraft subject to TSA regulatory oversight,” TSA said.
     “If all requirements are met, then cargo moving from an SPF to an all-cargo aircraft operator will not need to be screened,” TSA added.
     The requirements include the screening of cargo to identify and/or detect hidden explosives and institute supply chain security controls that prevent the introduction of concealed explosives into air cargo. Shippers will now be required to pay screening fees for all-cargo aircraft shipments.
     Reality check confirms that these rules are not new and have been in effect for cargo transported on commercial passenger aircraft since 2010, when TSA established the Certified Cargo Screening Program (CCSP).
UPS Trucks, West London Depot
     Think you have problems? Last Friday June 17, several UPS trucks are seen lined up behind a barrier at a depot in West London. UPS was ordered to stop moving air cargo through some of its U.K. facilities because of security flaws, the British government stated.
     The order is the result of a planned security check rather than a new threat to aviation, and a sign of heightened concerns about the vulnerability of cargo in the wake of an al-Qaida plot that saw bombs disguised in toner cartridges shipped on freight flights from Yemen.

     Here is the wrinkle. Secure Packing Facility Program just began accepting applications on June 14 when the TSA released the program in Federal Register Notice 86, No 112 FR 31512.
     So, 16 days before all hell breaks loose, (or maybe not) TSA comes up with a new program?
     Transportation executives, in addition to trying to save their failing businesses during this pandemic and trying to juggle a million other things, are getting thrown one more curve ball in all of this seems to be par for the course in dealing with TSA in 2021.
     If you suppose the flying here, is a bit by the seat of the pants, and worse, that you might not measure up to getting what’s right, straight?
     Think again.
     It ain’t you, babe!
     For applications click here.

Chuckles for June 24, 2014

Turnover Leaves Air Cargo At a Loss

     Just as many people in air cargo decided that enough is enough with this lockdown, and may have chosen in some respects to throw caution to the winds and attend trade events, or be damned, it might be helpful to step back a bit and observe that changes in the organizations that put up these events may leave them unable to recoup momentum to pull off a trade show or do much else in 2021.
     Start by wondering in all the mayhem of the last year and a half, who can truly mount a successful event in 2021 for an industry that currently is just operating at half of what it was in 2019.
     Right now, some carriers’ road-to-recovery plan includes realigning space back to passenger capacity that cargo people had utilized with those in-cabin cargo flights and all cargo operations.
     This has left some air cargo stalwarts scrambling.
     No conspiracy here and no coincidences either.
     Air cargo is simply, in some cases, going back to where it once belonged before it saved the world, and now is predictably taking a plunge in the eyes of some airline management.
     But we remain optimistic, because in cases like Air Canada adding a new freighter fleet that takes off this October; or the enlightened management at Qatar, Virgin, and some others that get it about the future; air cargo people are being heard, are supported accordingly.
     This year some events in terms of audience and revenue appear at this stage to be barely squeaking by on committed revenue that had been frozen in one place or another since everything was cancelled in 2020.
     As example, in the case of World Cargo Symposium Istanbul later this year Turkish Airlines, we hear, tried to back out of WCS in Istanbul (of all places), and was told: show up or lose your money.
     In the buy-it-now game has anyone noticed that in the air cargo publications by and large there is very little advertising from the airlines?
     But at the same time there are advertisements running in some of those “Official” air cargo event publications?
     What do you think that is all about?
     No doubt business as usual is unusual in this 2021 recovery year.
     So, the books will be closed on 2019/20 as event organizers, damn the torpedo’s and move full speed ahead, grab some additional 2021 trade show revenue from the restless this summer. This despite continued pandemic variant pop-ups and surges in different parts of the world, including Central and Latin America, Asia and elsewhere, that in late June 2021 remain under-vaccinated.
     But in the scorched earth path of COVID-19 there is a larger challenge ahead for air cargo.
     During the last year, the industry has seen quite a change in individuals from key organizations that represent the airline industry. Many senior people have left the associations for other positions. What is worse we have not seen anyone filling the shoes of these positions that are more important to have than ever for an industry that is in a state of dramatic growth.

Magical Mystery Tour of Associations

Liz Merritt     Elizabeth Merritt, Managing Director of Cargo, Airlines for America (A4A), which represents the U.S.-based airlines resigned after over ten years with the organization. Merritt was lead in many issues for the U.S.-based airlines with the U.S. TSA and CBP. As one of the most knowledgeable people of the rules and regulations airlines must comply with, she was a top spokesperson and led many important committee chairs that made sure the airlines had their say.
      Since her departure, James Van Epps has taken over as the new head of cargo for the association. Van Epps has quite an extensive background as he was formerly with Delta, Northwest and United. It is great to see someone with some airline experience in the role.

IATA Careens Toward Tomorrow

     The most dramatic change has been with CNS and IATA. It seems that their reorganizations have not filled several open positions but have eliminated them completely. In IATA’s global role there has been more of a purge. It has been almost six months since the IATA global head of cargo position has been open. Well known Glyn Hughes left IATA after taking a voluntary package and then joined The International Air Cargo Association as the Director General.
      In February, IATA Senior Vice President Nick Careen was quoted as saying that the position was especially important, and they would expect to fill the position with a well-known senior air cargo leader. As of this writing no one has been announced to fill this key position.
     Other key air cargo positions within IATA have yet to be filled and many have been combined, eliminated, or just left open. Even though air cargo has been a key role in keeping many airlines afloat during the COVID-19 period, IATA has also had to make some serious cuts to keep the organization operating.

Gordon Wright, Andrea Gruber and Shawn Beddows

Jumping Ship From IATA

     IATA has seen the Head of Cargo Border Management, Gordon Wright, leave for a position at DHL as Vice President Customs and Regulatory for the EU. Shawn Beddows who was Senior Manager in the same department as Wright departed IATA to take a position as VP at CT Strategies in Washington.
     Most recent departure is Andrea Gruber, Head of Special Cargo. Ms. Gruber, who had been charged with all the standards for live animals, pharma and other specialized cargo, will be a missed talent in the organization.
     IATA has dwindled their cargo representation down with many of the regional cargo manager positions eliminated. Asia, Europe, Africa, and the Americas are now left to a handful of positions that have been the face of the industry, yet IATA does not have much an agenda for cargo.

Concentration On Passengers

     At the end of the day, passenger issues are what the association is most focused on.      The airline industry is at a crux and so is IATA as to what they feel is most important to sustain the industry and the association.

Mike WhiteWe Like Mike

     One of the biggest losses for IATA was the departure of Michael White of CNS. White was known to be the voice of the IATA membership in the U.S. via CNS for over 13 years and was also the former Managing Director of Cargo for the U.S.-based Air Transport Association. His 23 years in Washington is not totally a loss, as his new company, Trade Network Consultants (TNC) is up and running, representing many of the carriers and organizations that have relied on associations in the past.
     So how about the other associations in Washington that represent other air cargo interest?

Alterman@39 Years & CAA

     One of the mainstays of the all-cargo airlines is Steven Alterman, President of Cargo Airline Association. The association represent carriers like Atlas, National, FedEx, DHL, UPS, and others. Alterman has been with the organization for almost 39 years, how long he will continue with the association is not known.
     CAA has two VP’s, Yvette Rose and Gina Zuckerman who play important roles and have a combined 41 years of experience with the CAA.

Michael MullenMulling Future of Mullen & EAA

     Another association is the Express Association of America headed by Executive Director, Michael Mullen. The former U.S. Customs and Border Protection Assistant Commissioner oversees the interest of DHL, FedEx, and UPS. The association is extremely focused on the interest of the three big integrators. The depth of the organization though is limited to Michael with much support from the members.

So What Happens Next?

     At a time when air cargo is in a state of change, there is still much to do to stay on top when it comes to issues affecting air cargo. In the U.S., there are upcoming developments that are huge.
     The development of the new U.S. ACE Export system, requiring all forms of transport to file their export information electronically is a major change in the way transport will do business in the U.S. Will other countries follow suit, and will the e-freight world go forward?

Security & Safety Top Agenda

     Security and safety are two key areas that will always exist. Who will speak with expertise and experience on behalf of the airlines in the future? Is the industry going to be represented by the associations they are members of, or will they have to do it on their own?

Air Cargo Looking For A Voice

     In this period when the air cargo industry has to adapt to the e-commerce world, which is growing at a much faster pace than was expected, will trade associations continue to be the voice, or not?
     Associations have been the voice for decades and there have always been changes in personnel. However we hope that in this next phase of evolution and development in the air cargo industry there will be individuals with knowledge and proficiency present. Only time will tell.

FlyingTalkers podcastFlyingTalkers
Turnover Leaves Air Cargo At a Loss
Air Cargo Needs Ability To Hit The Curve


   ULD CARE and Airport College join forces for an online webinar on June 29, 2021, where requisite levels of competence in ULD safety operations will be discussed.
   I remember that we spent maybe the greatest four days of our recent lives ensconced at a small five-star hotel in Paris about a half a block away from Le Moulin Rouge in Pigalle. Moulin Rouge is the place where the ladies danced and invented the Can-can during the 19th Century and today is still in business and packing them for dinner and a show every night.
Pertti Mero and Bob Rogers   So I got to thinking this week about my friend Bob ‘Can-Man’ Rogers in Hong Kong, who just happens to be King of the ULDs.
   Bob Rogers is the vital force for years organizing ULD CARE.
   Now ULD CARE has moved with the times with an interesting educational outreach teaming up with Helsinki-based Airport College for some online courses backed by an Ex-Finnair Cargo guy and Airport College founder Pertti Mero.
   The payoff is that Bob ‘Can Man’ Rogers who knows just about everything when it comes to ULDs, and ‘Professor’ Pertti are bringing the ability to make everybody in your company smarter within reach of the nearest computer, and that is something to dance about.
   “What air cargo needs is a cost-effective, affordable, measurable training session for the many hundreds of thousands of people who may have some involvement in ULD operations,” is the reasoning here.
   “Our sessions promise to deliver the essential know how to large numbers of people engaged in cargo and ground handling,” Bob & Pertti declared.
   Learn how learning about the ULD CAN-can impact your business. Click Here.
Moulin Rouge Can Can

Emily Arend and Lulu Going Physical     OK so unlike 2020, this will be a Super Summer 2021 with days and nights at the beach and the chance once more for some Fun, Fun, Fun!
     Just in time for the warmed-up bathing suit weather comes a new show on Apple TV titled, ‘Physical’ starring a big cast of some pretty beautiful Hollywood people, including our son Geoffrey II.
     A new show is always exciting, but as daughter Emily readies for her first trip to the shore, Lulu loves the Physical handout that includes room for a girl to get a free ride to the beach.
     “I’m hoping to avoid all those signs that say ‘No Friends Allowed,’” Lulu said.

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Vol. 20 No. 21
Ring Down The Curtain On Cargo Shows 2021
Chuckles for June 7, 2021
Pumping Traffic
Sky Electric Back To The Future
Listen! The Wind
Every Can Can
Hands Across The Table

Vol. 20 No. 22
PayCargo Firing Tip Of CNS Iceberg
Will IATA Take CNS Down?

Vol. 20 No. 23
125 Million Reasons PayCargo Rules
Chuckles for June 15, 2021
Air Canada Freighters Come October
Hit Or Miss Trade Shows
Pumping Traffic
No American Way

Publisher-Geoffrey Arend • Managing Editor-Flossie Arend • Editor Emeritus-Richard Malkin
Film Editor-Ralph Arend • Special Assignments-Sabiha Arend, Emily Arend

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