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Marketplace Trends: Optimism for the near and long term

Posted By Greg Guillaume, Thursday, August 24, 2017

Of the many changes in global airfreight markets that we all see in the conduct of our business, there are two that are top-of-mind for many of my TIACA (and Atlas) colleagues.

 

In the recent past, we have seen significant changes in the market for international airfreight. Since early 2016, demand growth has been accelerating, consistent with improvements in the global economy. However, available capacity has not kept pace over that same period, with the growth rate trending downward over that same period. 

 

In August 2016 we reached an inflection point where the rate of growth in demand exceeded rate of growth of supply. The divergence in growth rates recently has been extreme—not since 2010 have we seen similar dynamics in supply and demand. Current conditions are leading to a stronger pricing environment, and better capacity utilization, which is cause for optimism in the near term.

 

Over the longer term, e-commerce will account for an increasing share of retail sales—clearly this is the “mega-trend” of our times. Particularly in developed economies, we are seeing that e-commerce often uses express airfreight as a mode of delivery to the customer. With the anticipated future expansion of e-commerce in emerging economies, its effect on airfreight will drive growth for many years to come.

 

 

Greg Guillaume

Senior Vice President Strategic Development

Atlas Air Worldwide Holdings, Inc.

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Securing comparative advantage

Posted By Chinh Van, Friday, August 11, 2017

The world air cargo market has been characterized by lightweight cargo, decreasing demand for finished goods, and stagnant demand due to modal shift to marine transport. On the other hand, competition is worsening due to the expansion of freight transportation through passenger flights and the increase in supply and processing capacity due to aggressive airport infrastructure expansion in China and the Middle East.

 

In addition, instead of declining demand for existing major items such as electrical and electronic products, demand for fresh cargo and e-commerce goods has surged, and the proportion of freight transport using express carriers such as FedEx is increasing. Thus policy responses reflecting these trends are needed.

 

What do mango, cherry, lobster, salmon have in common? They are air freight items that are imported directly from local sources. Looking at the major cargo traded through Incheon Airport, there are notable high-margin items such as semiconductors and mobile machines, as well as fresh-food items with high time-sensitivity. This is attributable to the decline in the prices of imported agricultural and marine products due to the FTA and the increase in demand for high-quality fresh food.

 

Particularly, transportation of food and cargo in small volumes to cities and food around the world is increasing. Thus it is expected that the demand for transportation through passenger planes that are suitable for small volume transportation will increase. An airline can improve its cost efficiency because it can simultaneously carry passengers and freight on the same aircraft through cargo transportation using passenger flights.

 

As a result, Incheon International Airport is responding to recent changes in the environment and we have implemented several strategies to ensure this. One of our strategies is to develop Cool Cargo Center, a fresh cargo handling facility. IATA CEIV Pharma certification is also planned. Airlines operating at Incheon Airport are working on a project to build a "Cool Cargo Chain Process" ("CCCP") to attract passengers and special cargo such as fresh cargo to Incheon.

 

The CCCP is a trans-shipment process amongst passenger flights within the airside of the airport which will enable ground handling services within the connection time between flights. It is expected that this will greatly contribute to the competitiveness of airlines operating at Incheon Airport as well as the competitiveness of Incheon International Airport.

 

In addition, the current occupancy rate of logistics complexes (990,000 ㎡ in the first stage and 550,000 ㎡ in the second stage) is 97%. As a result, Incheon Airport will attract new global distribution centers based at Incheon Airport through the rapid development of the logistics complex (420,000 ㎡) to create new cargo and transit freight.

 

In this way, facility investment, institutional and process improvement for new industry growth will be an important strategy for the aviation industry.

 

I would like to find opportunities to find new strategies and insights through workshops, meetings and networking with a variety of airline logistics experts at the 2017 TIACA Executive Summit.

 

Kwang Soo Lee

Executive Vice President

Incheon International Airport Corporation

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Secretary General's Update

Posted By Administration, Friday, August 4, 2017

 

 In my several recent reports I was informing you about the events attended in some “remote” destinations, like Indonesia, Georgia and Ethiopia. Useful contacts and relationships had been established, and the TIACA flag was flying high there.

Some may assume that while going after the new relationships we started paying less attention to our long-time friends and well established partners. This is not the case. Business was conducted as usual. Customs authorities, security officials, international organizations – contacts are maintained and issues of importance to the air cargo industry are being discussed. In the coming months we will be actively working together with several US-based organizations. Today I will single out the Cargo Network Services (CNS) and Airforwarders Association (AFA) because of concrete arrangements and events.

 

On 6 September TIACA will be participating in the U.S. Air Cargo Industry Affairs Summit (USACIA) organized by CNS. Important agenda, renowned speakers and very promising attendance – all this allows for good networking and sharing of knowledge. Once it’s completed I will provide a report.

 

Another Association we have been actively working with is the AFA. We had several meetings and discussions with the Executive Director Brandon Fried, and now we are planning to have a joint meeting of the Board members from two associations during the time of TIACA Executive Summit in October.

 

You haven’t heard much about GACAG recently, however the group is not disbanded, and it has some potential, being a platform for discussion, coordination and even joint decisions by TIACA, IATA, GSF and FIATA. The latter is the coordinator for 2017 – 2018. We set up a meeting on 29 August in Zurich. I undertook to write a paper on the issues faced by the GACAG members. There will be also an opportunity to meet FIATA's new Director General, Hans-Guenther Kersten, and to discuss priorities of all the four participating Associations.

 

Vladimir Zubkov
Secretary General

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Sustainability and the aviation industry

Posted By Administration, Friday, July 21, 2017

 

 

Sustainability and the aviation industry

 

Sustainability is a topic that still remains relevant today for the aviation industry, including air freight. The reasons are varied, but one that comes to mind now concerns the fact that sustainability and environmental considerations are global in nature - just as the air freight industry is. If you think about it, this industry connects the globe. Open and efficient trade enables economic growth and prosperity worldwide. According to the 2017 Global Citizenship Report, the global trade market currently exceeds $15 trillion, and advances in technology and transportation systems make it ever easier to integrate global economies. This, in turn, supports business competitiveness, helps communities attract investment and creates more jobs. It allows goods to flow. It contributes to global GDP. And, as such, it helps individuals better their lives.

 

But, it is an energy-intensive industry. It requires fuel to move planes, trucks and other modes of transport. That’s why sustainability for the industry continues to make sense. Done correctly, it reduces fuel usage, improves efficiencies, lowers fuel costs, lowers emissions, and betters lives.

 

As an example, for FedEx, it means growing its business responsibly, resourcefully and in a forward-thinking manner that not only benefits the long-term success of the company,but the millions of stakeholders with whom it works and engages. Through the positive impacts of its financial performance, FedEx creates income and opportunities for customers, team members, communities, share owners, and suppliers, across more than 220 countries and territories. It calls that Delivering It Forward.

 

Some of the initiatives that FedEx utilizes include the following:


• Reduce aircraft emission intensity 30% from a 2005 baseline by 2020. To date, FedEx has reduced this emission intensity by 22%. And, it’s saved $233 million in fuel costs and avoided 1.47 million metric tons of carbon dioxide - equivalent emissions in FY2016 alone.

• Increase FedEx Express vehicle fuel efficiency 50% from a 2005 baseline by 2025. FedEx has, to date, achieved a 35% increase in fuel efficiency across its vehicle fleet, saving $48 million in fuel and avoiding 217,519 metric tons of carbon dioxide - equivalent emissions in FY2016, as well.

 

As detailed last year in Going Green can save a lot of Green, enacting sustainability in the proper manner saves money, improves efficiencies, strengthens customer satisfaction, and protects the environment. All of these results are good business outcomes. As such, enacted effectively, they are also good business practices that can help sustain a business, an industry, and the planet.

 

 

 

 

Frank Newman

Managing Director

FedEx Services

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WCA examines e-commerce with it's members

Posted By Administration, Friday, July 14, 2017

 

 

 

It's the phrase that is on everyone’s lips right now and is possibly the biggest challenge, but also the greatest opportunity facing the air cargo industry. The term e-Commerce is all encompassing and can mean very different things to different sectors of industry, trade, and transport.

 

The world has changed rapidly over the past decade with the rise of technology-driven eRetailers changing the way the world’s consumers find and purchase goods and services. Originally driven by domestic demand, we have, in the past few years, seen an explosion in demand for international cross-border B2B, B2C, and even C2C shipments.

 

Alongside industry giants such as Amazon, Alibaba Group, JD.com etc., there are now many thousands of SME retailers and producers using the internet as a tool to expand their customer base in other countries. From consumers buying personal goods from the comfort of their homes, through to companies making significant procurements of goods and raw materials direct from their computer screens, the growth in cross-border website-driven trade continues to accelerate.
The air cargo industry has been a little slow in reacting to these new demands and the paradigm shift in consumer and business models. The threat all players in the traditional logistics industry posed by companies such as Amazon is obvious and real, but finding solutions to meet these threats head-on and provide integrated solutions that meet the new standards being set in terms of delivery times, reliability, transparency, and efficiency is a big challenge.

 

In early July WCA held its first dedicated e-commerce conference in Miami. This brought together 150 logistics providers that are already active in the e-commerce logistics sector and are members of the WCA eCommerce network, alongside international eRetaliers, Customs and Compliance specialists, some airlines, technology providers and also representation from TIACA.

Through a two-day agenda of dedicated workshops and seminars, delegates were provided with valuable in-depth information on how to penetrate and succeed in cross-border e-commerce and how to overcome challenges such as licensing, compliance and customs regulations. Other sessions gave real-life case studies of how to win contracts with Amazon and other large eRetailers and innovative new technology solutions that can be plugged in to provide some of the transparency and efficiencies that are vital for success.

 

The Q&A sessions at the end of each workshop were lively and energetic, reflecting the real thirst for knowledge and information. The interaction between eRetailers and logistics providers was especially interesting and productive as the expectations and demands of the online retailers became clearer to the delegates.

 

What was even more satisfying was seeing groups of eRetailers, logistics companies and technology providers conducting their own meetings in the bars and coffee shops following the end of the workshop sessions, working on real solutions – a number of logistics contracts were even signed by the end of the conference. It is also encouraging to see that a number of airlines are also beginning to think about innovative new solutions to meet the demands of this cross-border trade, rather than trying to shoe-horn e-commerce trade into their current service model.

 

The traditional freight industry has a long-way to go to even begin to capitalize on the great opportunities that cross-border e-commerce is providing, but from the energy demonstrated in Miami by many players in the logistics chain, there is a fighting chance that we can work together to create the tools, solutions and seamless transport options that online shippers and buyers crave.

 

 

Dan March

CEO

WCA Ltd

 

 

 

 

 

 

Secretary General's Comment

 

I attended the conference. Not only through my own impressions, but judging by the reaction of the participants, the topics were of great practical value. Some emerged as completely new for any conference agenda, like the "Buytasker" presented by an Australian David Aherne. Covering product sourcing and design, quality control, compliance and other issues in an uncommon fashion, he generated dozens of questions from very experienced audience. Apparently many wanted to find new ways of increasing profits and customer loyalty through his innovative approach.  

 

The X-Border classification tool, integrated technology platform, e-commerce certification of the supply chain participants - just a few more to name -  topics which led to a vivid exchange. 

 

 

David Yokeum, Dan March and Alex Allen, who designed the conference should be not only satisfied,but also challenged to share more of this material with other members of TIACA.

 

 

 

 

 

 

Vladimir Zubkov

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Winning Formula!

Posted By Administration, Friday, July 14, 2017

Winning Formula!

 

My time at TIACA has been and continues to be an enriching experience. TIACA’s “Winning Formula” enables you to learn, network, and engage key stakeholders which to me are essential ingredients in our industry today. 

 

With this in mind, this week we kicked off our Leadership Development Program for 2017 at Agility.  An area that we are committed to doing every year where we basically select and engage a group of 20 to 25 of our next level leaders in a year long development program.

The program is a combination of personal development and team based project work that is related to our strategic objectives.  Our approach allows us to engage and focus in areas most important to the individual and our organization goals.

 

As we prepared the focus areas we wanted the group to work on, I was particularly pleased on two main themes we are committed to, that underline how things are evolving in our industry:

 

1.       Engagement – The best way to harness the talent in your organization is through active engagement.  This is a shift from telling people what to do to creating an ecosystem built on common vision, values, and goals and an approach that gives people the opportunity to build, create, and perform to help you meet your vision and goals.  There is nothing more motivating than this for any high performing individual and company!

 

2.       Democratizing the information – Our business and industry has to “democratize” the data which enables people to make the most informed decision possible at any point in time.  This is a big shift from the way we have been operating.  This is only possible with technology but is scalable with skills and talent.

 

The key ingredients for these themes to be successful is to ensure you are investing in the right people, in developing the right skills underpinned with clear vision and goals and supported witha common framework and approach is also a winning formula.

 

My TIACA experiences have helped shape and evolve our Winning Formula!

 

 

 

Essa Al-Saleh

President and CEO

Agility Global Integrated Logistics

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TIACA is facilitating closer contacts between top regulators and the industry.

Posted By Administration, Friday, July 7, 2017

 

TIACA is facilitating closer contacts between top regulators and the industry.

 

 

Using the venue of the Second ICAO Meeting on Air Cargo Development in Africa which ICAO held in partnership with TIACA, Secretary General of TIACA Vladimir Zubkov organized a meeting with participation of Dr. Olumuyiwa Benard Aliu, President of the ICAO Council, Boubacar Djibo, Director of the ICAO Air Transport Bureau and ICAO Regional Directors Mam Sait Jallow and Barry Kashambo on the ICAO side, and Piet Demunter, Director Strategic Development and Steven Polmans, Head of Cargo & Logistics from the Brussels Airport Company.

      The meeting gave an opportunity for the top aviation regulators to meet with the industry representatives and to exchange views on both: the African and the global issues.

       

      The discussion centered around following items:

      • How can ICAO further facilitate cooperation between all air cargo stakeholders to ensure that air cargo sector in Africa grows in an efficient, coordinated and sustainable way. 
         
      • Assistance to African airports in the introduction of the most efficient practices, like those used in Brussels airport with the "Airport Community" concept.
         
      • Development of ICAO/TIACA joint programs for the promotion of the benefits which the air cargo evolution brings into the national economies.
         
      • Fostering partnership approach to promotion and facilitating trade development in Africa through improvements in the air cargo policies. Include WCO for improvements in the customs procedures.
         
      • Introduction of training programs which will be addressing not only operational levels but also level of the decision-makers.
         
      • Promotion of the new advanced methods, like electronic documentation, single window, etc. 
         
      • More detailed report about the meeting will be published in the TIACA monthly letter.

       

       

      Vladimir Zubkov

      Secretary General

      TIACA

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      Higher eCommerce demand for airfreight

      Posted By Administration, Friday, July 7, 2017

       

       

      According to a study, one-third of the US$3 trillion global e-commerce market is cross-border trade, which is growing faster than domestic sales. Hence, e-commerce has resulted in higher demand for airfreight. In the early days of eCommerce, shippers and consumers have two main choices of moving their parcels i.e. either through pure integrators or pure postal mail.

       

      However, with higher expectations of today’s shippers and consumers, which now demand time-sensitive, door-to-door service, the logistics industry, was forced to create alternate logistics arrangements in order to unlock new markets and provide new levels of availability and reliability.

       

      Some of the new logistic arrangements that come into play are airfreight to postal, airfreight to last mile delivery companies,airfreight to drones, land-air-last mile deliveries, sea-air-last mile deliveries, etc. These new ways of distributions require better planning and coordination among all the air cargo players in order to provide transparency and reliability that the customers demanded.

       

      TIACA is an excellent organization which can bring all the parties in the air cargo industry together to meet such challenges.

       

       

      Chee Meng Wong

      Senior Vice President

      SATS Ltd

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      Technology and regulation always have defining impacts on any industry.

      Posted By Administration, Friday, June 16, 2017

       

      Technology and regulation always have defining impacts on any industry. For the air cargo industry, we know that regulation continuously pushes the industry in upgrading the technology. We all have seen that AMS, ENS, ICS etc made our systems capable of sending advance information to destination regulators and now Pre Loading Advance Cargo Information (PLACI) initiatives like ACAS, PRECISE, and PACT now demand pre-loading information to be sent from our systems.

       

      Whilst the need of PLACI can’t be understated, TIACA has been vociferously advocating the need for standardization of data and format requirements so that the industry doesn’t have bear the burden of tweaking its systems to comply with PLACI requirements of multiple countries & regions. Concurrently, TIACA has discussed possible solutions with other industry bodies and has conceptualized a path-breaking initiative called SWACI (Single Window for Advance Cargo Information). SWACI aims to take shape of an electronic platform available to the industry using which the members of our industry can meet the compliance requirements of PLACI of multiple countries. The initiative is still in infancy but has a great potential in reducing the compliance costs and burden for the industry.

       

      TIACA also supports several innovative initiatives that have the potential of bringing in path-breaking changes. Whilst we at TIACA are monitoring the progress of Block chain technology and its impact on the air cargo industry, we are also working closely with the groups that are involved in creating Data Backbones.

       

      TIACA is also lending its expertise in the space of trade facilitation and is involved in advising some of the world’s leading and fast growing economies in conceptualizing the trade facilitation infrastructure and putting in place air cargo single window systems. TIACA plans to grow this capability to make even greater contribution to the industry. If you feel that TIACA shall advise the governments of your country as well on air cargo single window systems, please feel free to get in touch with the Secretary General with the contact details of concerned people in the Civil Aviation ministries.

       

      We see the future ushering in a lot of excitement and it is our sincere effort to ensure that our every member is prepared to deal with the changes and the challenges of future.

      If you want to understand and be future-ready then please block your Calendars from October 18th to 20th  for TIACA’s 2017 Executive Summit, “Future Proofing Air Cargo” which takes place at Turnberry Isle Resort & Golf Club, Miami, USA. You will not only hear from the experts on these trends but you can also participate in discussions and debates to make sure that you are on top of things.

       

      We hope to see you all in Miami in October!!!

       

       

       

      Amar More

      CEO

      Kale Logistics Solutions Private Limited

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      TIACA makes its contribution to the WCO Conference in Tbilisi, Georgia

      Posted By Administration, Friday, June 16, 2017

       

       

      TIACA makes its contribution to the WCO Conference in Tbilisi, Georgia

       

       

      Vladimir Zubkov, Secretary General of TIACA and Kunio Mikuriya, Secretary General of WCO have shared their views with a 550-strong audience from more than 80 countries during Session 1 devoted to E-COMMERCE.

       

      TIACA members may recall that the relationship between TIACA and governments and international organizations was considered important by the responders to the survey conducted earlier this year. Customs was singled out as one of the key partners in establishing favorable working conditions for the whole air cargo supply chain. As a result, TIACA has been taking consecutive steps in strengthening its links with WCO.

       

      Zubkov and Mikuriya along with three other panelists tackled the questions of E-Commerce which has become one of the central topics for Customs and Governments, the whole air cargo supply chain, as well as the private sector and other stakeholders. Right at the outset, it was recognized that the importance of the E-Commerce calls on Governments for devising strategies to support its tremendous growth.

       

      The discussion started by what seems to be the basic question: “What is the definition as well as the scope of E-Commerce?” The range of questions which followed may be indicative of the main directions to which Customs officials attach greater importance:


      - How is the tremendous growth of E-Commerce impacting Customs and governments as a whole? What are the benefits and what are the challenges?


      - What are the opportunities arising and how can Customs contribute to the E-Commerce agenda? Is trade facilitation the key priority? How can IT systems help?


      - What are the opportunities arising for the developing countries and LDCs and what are the main challenges and obstacles?


      - How can E-Commerce platforms support governments in performing their responsibilities both in terms of ensuring proper controls as well as in terms of ensuring improved service delivery?

       

      - What are the ongoing discussions on E-Commerce in the WTO? What can be expected at the 11th Ministerial Conference in Argentina end of this year?


      - Can current e-payment solutions respond to the requirements of all users of E-Commerce and what are the opportunities lying in that domain?


      The sessions which followed in the course of two days explored such issues as SINGLE WINDOW, BIG DATA, DATA MINING AND PREDICTIVE ANALYTICS, DATA GOVERNANCE and BLOCKCHAIN. I should acknowledge high professionalism of the speakers, and once the presentations are available to me will share them with you.

       

       

      Lessons learned and actions to be taken:

       

      You must have noticed that the references above are all directed at the governments and the Customs. And it’s not an omission on my side – this is something which I find is indicative to the level of coordination between Customs and the rest of the air cargo supply chain. Apart from the TIACA Secretary General, only two KLM officials and one staff from IATA represented the industry at the conference.I called attention to the lack of industry representation at the concluding session, very suitably called “INTEGRATED SUPPLY CHAIN MANAGEMENT”, which I moderated, and presented it as one of the key challenges. I also talked separately about the low level of interaction with the industry to the organizers within WCO. I intend to follow-up on this in order to make sure that the next time a conference of this caliber is organized the proper representation from the supply chain is secured.

       

       

       

      Vladimir D. Zubkov
      Secretary General
      The International Air Cargo Association

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      Sebastiaan Scholte on Air Cargo Europe

      Posted By Administration, Thursday, June 15, 2017

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      Air Cargo Europe in Munich, Germany was a very exciting event where we were able to meet the whole industry. Obviously, TIACA was present there as well.

       

      Many companies showed interest in the ACF in Toronto, Canada and we were able to bring on new exhibitors for this special event in 2018.

       

      But besides the upcoming ACF in Toronto, we have scheduled a lot of interesting events in the coming months as well.

       

       

       

      Hereunder is a list of the upcoming events:

       

      - TIACA will jointly organize a conference from June 26 to 29 with the Cool Chain Association and the International Civil Aviation Organization (ICAO) in Addis Ababa, Ethiopia. Africa is booming in terms of perishable growth and Addis Ababa is developing itself in a hub thanks to the rapid growth of Ethiopian Airlines. This conference offers a unique opportunity to talks to shippers, forwarders, airlines and also to authorities regarding African air cargo development.

       

      - A four-day workshop aimed at enhancing management skills for air cargo professionals will be conducted by TIACA in Anchorage, Alaska from August 29th to September 1st, 2017.
      The Professional Development Workshop Program, designed by Strategic Aviation Solutions International (SASI) in partnership with 
      TIACA, gives participants an appreciation of the entire air cargo supply chain and the component sectors by encouraging discussion and the sharing of perspectives, as well as providing practical advice and insight.

       

      - TIACA’s 2017 Executive Summit, “Future Proofing Air Cargo” takes place at Turnberry Isle Resort & Golf Club, Miami, USA from October 18th to 20th. In addition to plenary sessions, delegates are invited to attend a series of workshops that will debate some of the most topical issues for the international air cargo industry.

       

      TIACA's Executive Summit is attended by industry professionals to discuss critical issues impacting all in the air cargo industry, providing a platform for top logistics executives across all sectors to come together to attend plenary sessions, workshops, and panels led by esteemed industry speakers.

       

      We have also been approached by various companies who expressed interest in developing young talent after the successful initiative last year in the Netherlands where six “high potentials” from all parties in the air cargo chain spent a full week visiting each other’s companies and discussing the business challenges each of them is facing.

       

      We are also in talks with universities for executive education to complement our successful professional workshop program.

       

       

      Sebastiaan Scholte

      CEO

      Jan de Rijk Logistics

      TIACA Vice-Chairman

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      A view from Washington

      Posted By Administration, Thursday, June 15, 2017
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      Dear readers, dear partners,

       

      Let me share with you a few points from the recent work on air cargo of the Transportation Security Administration (TSA) Aviation Security Advisory Committee.

       

      There is no decision yet on the appointment of the next TSA administrator. Hence there are fewer developments than in the previous years. However, members of the committee were asked for their input regarding the Presidential Executive Order (13771) mandating that for each new regulation introduced, two must be removed unless there is a direct security impact.

       

      Proposed regulations slated for removal must undergo a Notice of Proposed Rulemaking. There was concern expressed regarding the "two for one" Executive Order and its impact on the Air Cargo Advanced Screening (ACAS) regulation but it was unclear how the U.S. Customs and Border Protection (CBP), the primary sponsor of ACAS, was going to navigate the issue.

       

      The most encouraging news is that the third-party, private canine screening program is making progress within TSA and on Capitol Hill. In fact, $3.4 million has been included in the 2017 TSA fiscal year budget for the purpose. There was a discussion on how it may be operationalized and acknowledgment that several issues needed to be resolved but the process is well underway as TSA is engaged and committed to the program. The areas need TSA authorization bill being marked up on Capitol Hill which, if passed, could specify exactly how TSA is to use the funds related to the canine program.

       

       

      Brandon Fried
      Executive Director
      The Airforwarders Association

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      Just build it: Taking the air cargo data backbone to the next level

      Posted By Administration, Friday, May 19, 2017

      Just build it: Taking the air cargo data backbone to the next level

       

      Just three months after TIACA’s Shippers’ Advisory Committee (SAC) launched its whitepaper, SAC-member Ericsson hosted an inspiring 2-day meeting in Kista, Sweden (Ericsson HQ) to touch on the formation of the Trade and Cargo Facilitation association (TCF) and to deepen the blueprint of the logistics data backbone. The last one presenting a challenging development process for all stakeholders especially within the air cargo sector. Ericsson also showed how the 5G automotive association developments could provide best practice on this issue.

      More than 80% of the companies attending in Kista want to be highly engaged to move forward on concrete output on the logistic data backbone. More than 50 companies were present from a wide array of sectors within the supply chain: shippers, carriers, airports, ports, LSP’s, Port Community Systems, developers, academics, associations and representation from the EU were actively engaged in taking the data backbone principles to the next level. Individual Shippers as well as the European Shippers’ Council and the Global Shippers’ Forum were present. ESC also gave a presentation on the EU-led Digital Transport and Logistics Forum and the EU funded CORE project which touch on the same issues within logistics: how to create a seamless data supply chain next to the physical supply chain.

      The idea of the backbone (or pipeline) is already known as a concept to many, but still remains just that: a concept. The combination of hardware, software and services that connects trusted users in order to provide secure, fast and reliable data exchange in logistics increases business efficiency, reduces margins of errors and increases safety, is a goal for all. How come we have not reached lift off yet? Passengers already have fully digitalized data when travelling, why not air cargo?

      There are several hurdles that need to be taken into account: lack of compatibility of legacy systems, strict oversight from competition authorities, cyber security and privacy issues, compliancy implementation including cost of investments to be made. Issues that would make some hesitant, but as one of the cargo bosses of a major airport said during the meeting: “just build the freaking thing and get on with it”. Indeed, the proof of the pudding is in the eating. To know the effects and the benefits of the data backbone, we need to build and to simply test it: prove theory in practice. This does require a certain amount of determination and spirit of cooperation, which were surely present in Kista. The data backbone is seen by many as a panacea for all problems in air cargo, but also equally challenging.

      As an initial step, an open source/open platform was created for all parties to get involved and to just start working on various use cases as soon as possible. Futher meetings have been scheduled. This letter is an open invitation to all TIACA followers to jump in and join us. Let’s keep talking, but also let’s build it and just do it!"

      Denis Choumert

      European Shippers' Council

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      Positive outlook for air cargo?

      Posted By Administration, Friday, May 5, 2017

       

      View from the Board

      Positive outlook for air cargo?

       

      E-commerce is booming, decline in yields has halted, airlines are showing cargo growth again, several airports are reporting close to or even more than double digit growth. Not so long ago things seemed not too positive, suddenly the world looks different. Welcome to the world of air cargo.


      But these positive signals should not be a reason for stopping the initiatives that we as an industry have started. More standardization, increase collaboration, finally looking at digitization as a solution rather than something we should be afraid of. More than ever, we should take the opportunity to intensify collaboration. TIACA can and will do this on a global level, but also locally, several initiatives could be taken.


      Personally, I really believe in stronger local cargo communities. Amsterdam has shown already many years ago this kind of cooperation benefits everybody in the logistical chain and all participants. In recent years, Frankfurt airport is also working hard on a stronger cargo community, launching several new initiatives and projects. And earlier this month, we celebrated the one year anniversary of our Brussels cargo community. I would never have thought that in such a short time frame, we would be able to attract so many participants and could launch so many projects. From e-freight to Customs, from AVI to pharma, from innovation to training. On all these subjects we were able to make progress.


      Aligning with one of the topics that is important to TIACA, knowledge; we were able to set up a bachelor in air cargo management with a local school. In three years from now, we will see the first students leaving school with a diploma in logistics management with a specialization in air cargo logistics. We also launched Young Airfreight Network, YAN. Everybody at the airport or linked to our industry can join, as long as you are under 35 years of age. With their own agenda and budget, these people have organized themselves around three themes: jobs, networking and knowledge exchange. Organizing their own meetings, going to schools to talk to students, … But more important: they are learning from each other, meeting each other, exploring opportunities, increasing knowledge of the different stakeholders in the process and building of their network. We should support these kinds of initiatives in order to see fresh blood in our industry, to keep talent and to create the future managers that will shape our industry.

       

      Steven Polmans

      Brussels Airport

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      Aircraft chartering from the Shorts Belfast to the Hybrid Airships

      Posted By Admin, Friday, April 21, 2017

       

      Aircraft chartering from the Shorts Belfast to the Hybrid Airships

       

      The aircraft charter industry has seen some big changes since I started in 1987. The Shorts Belfast was in the late 1980’s the largest commercially available aircraft, that could take off within a few hours’ notice to fly urgent car parts through Europe or outsized cargo worldwide. With the entry of Russian and Ukrainian aircraft in the early 1990’s the niche priced Belfast’s days came to an end.

       

      The charter market grew at an incredible rate with the influx of many new names such as Antonov Ilyushin Myra Ruslan and new numbers AN124 AN225 IL76 AN12 AN24 AN26 and many others. What had previously only been possible with the limited amount of Western made niche aircraft, like the Belfast, Merchantman, Hercules and Guppy was now readily available, with increased capabilities and most importantly huge amounts of flexibility.

       

      Today the niche and outsized charter market is still the home for the Russian and Ukranian aircraft. Looking into the future, maybe very soon Hybrid Airships will be competing with Antonov’s and Ilyushin’s and be among the answers to the niche and outsized charter market of tomorrow.

       

      The aircraft chartering industry has grown over the last years, in some cases, major global airlines have increased capacity to allow for more dedicated charter business either for single or for regular charters.

       

      In my opinion operational flexibility and a “yes we can” attitude is a must, for any aircraft operator wanting to be successful in this dynamic part of the air cargo industry. TIACA membership includes many of the world’s leading air charter operators and charter brokers. Being part of TIACA is vital to keeping up to date with industry regulations that include issues affecting aircraft chartering.

       

      Russi Batliwala
      CEO Chapman Freeborn group of companies

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