IATA Raps Keeling Comments

     As pressure mounts in the global air cargo price fixing scandal, The International Air Transport Association (IATA) lashed back at Julian Keeling, President & CEO of Consolidators International (CII) saying, Keeling’s call for the opening of forwarder and airline books by CASS, the official cargo collection agency for the world's carriers, and other remarks Wednesday October 30 in Air Cargo News/FlyingTypers was “ill informed.”
     In our story titled “Jail Forwarder Price Fixers,” Mr. Keeling also charged:
     "Their records would show clearly what the real facts are.
     “CNS, the cargo arm of the airlines' trade association, IATA has been tight-lipped about the situation and, in effect, protecting the big forwarders who sit side by side on CNS' advisory panel with the airlines.
     “CNS is acting in typical trade association fashion; refusing to take a stand when the facts clearly warrant strong, decisive action,” Mr. Keeling concluded.
     Air Cargo News/FlyingTypers received the following statement from IATA spokesman Steven Lott:
     "The ill-informed comments by Julian Keeling, President & CEO of Consolidators International (CII) in FlyingTypers, (October 30) with respect to Cargo Network Services (CNS), a subsidiary of the International Air Transport Association (IATA), and CASS completely misunderstand the process of the ongoing criminal investigation into cargo industry practices.
     "The matter is in the hands of government and law enforcement authorities.
     "IATA has cooperated and will continue to cooperate fully with the investigators.
     "An expeditious conclusion to the investigation based on a thorough interrogation of all the facts is in everybody's interest."
     Mr. Keeling, obviously feeling the growing frustration of many people in air cargo at continued revelations of alleged price fixing in security and fuel surcharges, coupled by ramped up law enforcement activity directed at both air cargo companies and individual managers who apparently now can be held personally liable in USA and elsewhere, also said:
     "Fines levied against a few airlines are not sufficient.
     "Doing time in prison by the executives involved is the only effective remedy to stop this nefarious collusion between airlines and the big international forwarders.”
     Despite the IATA characterization of Mr. Keeling’s remarks many industry sources believe the executive has hit a nerve that should be addressed.
     In a time of challenge, unparalleled in air cargo history, given the worldwide heat and attention to recent charges and countercharges swirling about questionable business practices, some people we talked to concluded that the IATA statement is remarkably shallow and devoid of information and substance.
     Moreover, since Giovanni Bisignani assumed command at IATA, the group has often been quite outspoken, even edgy about major issues.
     Keeling coming forward, up close and personal, on this issue is unique and in the wide world of air cargo politics— unusual.
     There are plenty of opinions but while people will talk with great certainty, most would rather not be identified.
     Many wonder as air cargo looks for direction and leadership why the organizations that represent the industry have become mostly silent and invisible.
     One source queried:
     “Why has IATA adopted a 'tail between the legs' approach on these issues?”
     Another ventured:
     “Where are the other voices always so ready to opine about industry issues?
     “One glaring absence of response to the matter of fraudulent carrier/ large forwarder price fixing manipulation is any word from Airfreight Forwarders Association (AFA).
     “The silence from a group that represents a lot of small and medium sized forwarders, is in a word, astounding.
     “Has Brandon Fried, who normally does not miss an opportunity to articulate his opinion, been rendered speechless?”
Geoffrey