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A R C H I V E S

LARSEN AT LARGE

     On March 27th the New York/New Jersey air cargo community once again gathered at the Holiday Inn at JFK to show off their wares for the 3rd annual JFK Air Cargo Expo which featured 42 exhibits ranging from automated manifest systems to systems to transport zoo animals. In addition to the exhibition, speakers and panelists came together to explore and discuss the past, present and future of an industry particularly hard hit in the areas of cargo security and economic survival.
     An industry that possesses good solid experience in the movement of air cargo and, one that desperately wants to work with lawmakers before actions are taken that may affect its ability to maintain the safe unrestricted movement of goods.
     We in New York also face competition from other U.S. gateways, as Mr. William DeCota, Director of Aviation for the Port Authority of New York and New Jersey pointed out in his opening remarks when he said: “There is competition today at many levels but competition and rivalry are good—they are a test of skill that makes us better and forces us to rethink products and services and maintain a customer-focused edge.”
     Continuing, he told the audience of the importance he places on the community working with government agencies on everything from access to security by highlighting the value of the experience of the JFK air cargo community. “ In looking at the list of attendees, something jumps out right away about the uniqueness of this Air Cargo Association Expo. . . ITS UNIQUELY NEW YORK. We all do business at John F. Kennedy International Airport. We are the leaders of a robust regional air cargo community and, as such, we are leaders in the air cargo industry. There is no other air cargo hub on the planet with the past, present and future of JFK.”
     Perhaps the New York air cargo community’s concerns regarding government intervention was best voiced in a recent speech given by Bill Graves, President and CEO of American Trucking Association and former Governor of Kansas. In it he made an interesting comparison on the way the private sector would tackle a problem and the way government attacks the same problem.
     He said, “My father used to tell me a story about hauling livestock out of the hills of Central Kansas in the 1930’s. Contrary to popular belief, Kansas is not as flat as people think. There are a lot of hills, and small watering ponds that attract cattle in the low spots between those hills.
     Back then, before the invention of the fuel pump, a truck’s fuel was gravity-fed and the fuel tanks were generally mounted up behind the driver’s seat. So it wasn’t a problem getting down the hill, but if the hill was steep, the fuel stopped flowing to the engine and you couldn’t get back up?
     Later, working in government, I often thought of how bureaucrats would have approached the problem: First, there’d have to be a committee and certainly a bunch of studies by independent consulting firms. Possible solutions - level off all the steep hills or prohibit cattle pens from being built in the low spots.
     What was my father’s non-government solution? He’d load up the cattle; turn the truck around and back up the hill.”
     Where experienced people can come up with common-sense solutions that come from years of practical experience, the members of the air cargo community feel they don’t need government to micro-manage their business.
     No one at the Expo advocated the abolition of government but most feel if the government takes the time to listen, perhaps we can show them the best way to get over the hills.
     During the panel discussions it became evident that there were also possibilities of the industry getting more out of what they already have, by better training the people.
     Panelists also examined ideas in the fields of security and new technology, speaking of advances which will help the community to ensure that, in the words of Secretary Mineta, “Our check points do not become our choke points in air cargo movements.”
     Still, the panel discussions left some underlying concerns unanswered!
     Liability casts a large shadow over our industry today, especially in light of some tough economic times. How the two will be blended together into some workable arrangements that will not leave some small or mid sized freight forwarders liable for the loss of an aircraft and possibly hundreds of lives is yet to be worked out.
     It can never be unless the industry keeps going back to the rule makers insisting that, the same government that rushed to create their own 50 thousand plus passenger security screening force also take on the responsibility of certifying known shippers by creating a TSA group to inspect and certify shippers facilities as well as maintaining a database containing information on those shippers. At present that responsibility has been left in the hands of the air carriers and indirect air carriers. This has often been referred to as leaving the fox in charge of the henhouse.
     Finally the horrific events of September 11th and its aftermath pointed to complex challenges caused, at the time, by the shutting down of major roadways and the airways.
     Imagine if the next terrorist attack targets the George Washington and Verrazano bridges!
     What is the plan that will continue to supply this region with the items necessary to maintain one’s existence, or does it mean that everything and everyone east of the Hudson will be written off?
     From an access and a security standpoint, the industry has to seriously look at transportation alternatives that will allow the movement of goods in and out of the region, without placing the entire burden on trucking alone. A region surrounded by water should have a network of ferries capable of hauling trucks to and from points on the mainland. If the former mayor determined that the city could run the Staten Island ferries for free, why can’t the city or state at least partially subsidize this type of transportation, allowing truckers access to these rich markets without forcing them to run the gauntlet of the already congested bridge, tunnel and roadway systems that feed the five boros and Long Island.
     As if security and access were not enough in these difficult times, add to it one of the toughest economic downturns air cargo has experienced in quite some time. Bankruptcies among some of our major carriers, cutbacks in schedules, failures in the trucking industry and labor issues on the west coast recently sent manufacturers and retailers scrambling to find alternatives leaving manufacturers without parts, and retailers without products, all of which resulted in making what was expected to be a lean holiday season even leaner.
     Unfortunately participants in the JFK Air Cargo Expo alone cannot solve the economic problems the industry faces but, on a daily basis, their efforts maintain this region’s reputation as a leader in the movement of air cargo. It’s a tough business with a lot of competition for a very limited amount of cargo.
     The promotion of international cargo must reach out to carriers’ overseas offices but those international carriers are not having much of a problem either sales wise or operationally filling their aircraft. It’s the backhaul that’s hurting.
     It’s the people here at JFK and EWR who are scrambling to fill the return legs of their international flights with whatever cargo is out there with whatever the market will bear for rates. It’s those people who sell these airports and their operational capabilities and it’s those people we should thank for our success. That thanks was evidenced by a proclamation from Helen Marshall, Borough President of Queens declaring March 27th as Air Cargo day in Queens. The proclamation was made by Mr. Seth Bornstein, a member of the Borough President’s staff at the Expo Luncheon.
     Congratulations air cargo. See you next year!!