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View from the Board - Flying safely with Lithium Batteries on board.

Posted By Administration, Monday, January 16, 2017
Updated: Thursday, January 5, 2017

Flying safely with Lithium Batteries on board.

 

The Dangerous Goods regulations for 2017 include additional safety measures for air transportation of lithium batteries. Regulations of lithium batteries are continuously discussed, amended, and changed following safety concerns and incidents in order to continuously assess and mitigate transport risks. Regulators set up structured and defined responsibilities to stakeholders involved in air transportation of lithium batteries. Certain airlines may apply additional limitations on lithium battery transport based on their own considerations and risk assessment.

 

 TIACA points out that compliance begins with lithium battery manufacturers and shippers much before the transport of the shipment itself.  manufacturers and shippers are responsible for complying with design, testing, and preparation of batteries prior to and during battery production in order to ensure that the batteries perform and withstand air transport conditions. Recent experiences and reports about lithium battery transport show how crucial manufacturer and shipper compliance with the regulations is and the consequences of non-compliance on air transport. Looking forward to a new year of collaboration, TIACA encourages members and partners to join efforts, raise awareness, share, and exchange knowledge so that we can safely and successfully continue to transport lithium batteries by air.


Lucas Kuehner
Global head of Air Freight
Panalpina

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Secretary General's Update - Best Wishes for the New Year

Posted By Administration, Friday, January 13, 2017

 

Best Wishes for the New Year

 

 

In starting this year as Secretary General of TIACA, I will prioritize the objectives that are based on my assessment of what the current and prospective members expect from our unique organization.

 

A top interest of our members, which has never changed, is that TIACA represents them well in government circles and that organizations like the International Civil Aviation Organization (ICAO), World Customs Organization (WCO), and other regulators in the United States and EU understand the concerns of the air cargo industry as they develop policy. TIACA takes part in the major regulatory meetings, but in recent years we have achieved the next level of collaboration – top officials from ICAO, the EU, the Transportation Security Administration (TSA), and WCO take an active part in the major TIACA meetings. Now, we need to move even further ahead – to forge a real partnership in the development and implementation of regulatory material and in procedures on the ground.

 

Another important focus of our work is to create favorable conditions for our members to build more business opportunities and to gain access to new business partners. We need more actively promote our industry to economic and global trade leaders. We all know that 35% of international trade by value is supported by the air cargo sector. But there is another very impressive figure which appeared in December 2016 in the Study on Air Transport and Global Value Chains, commissioned by the International Air Transport Association (IATA). For the first time, the study quantified the relationship between air cargo connectivity and a State’s participation in global trade. The study suggested that a one percent increase in air cargo connectivity is associated with a 6.3% increase in trade. That’s what I want to bring to the attention of State administrations, the WCO, and financial institutions. They have to turn their attention to one of the main facilitators of global trade, air cargo.

 

Another important issue is achieving compatibility in procedures and regulations throughout air cargo supply chains. We don’t have a reliable mechanism which connects the regulators closely enough to people working in the field. It’s one of the priorities, and I have started consultations with the heads of some international organizations about new avenues for cooperation.  And this goes hand in hand with training and even mere awareness of the importance of air cargo within the global economy.

 

Safety & Security needs an innovative approach in several key aspects and one of them globally harmonized Advance Data information procedures and unification of the requirements to trusted operators (there are different names for those in different countries).

 

There is a need for innovation not only in the technological field but in the way we evaluate success (or otherwise) of the work of cargo units at airports and other units in the supply chain. We have a very suitable project for joint development with ACI and ICAO. ACI has an Airport Service Quality (ASQ) program to measure passenger satisfaction, which helps airports compete and enables them to measure themselves against other airports and identify strong and weak points. Cargo facilities do not have an equivalent. And they should. Now is the time to develop such a program.

 

Another important note - many initiatives come from the TIACA Board, and Board members take a keen interest in their implementation. Expect more after our next Board meeting!

 

We also need to reassess the way we use the energy and knowledge which comes out of the industry conferences and other meetings. We need to strive for greater involvement of the regulators and associated international organizations to the development of practical solutions, methodologies, and projects which we talk about in our events.

 

And all this can be better achieved if we promote the culture of working together, engaging all the participants in the air cargo supply chain in one transparent and unimpeded process. It should become the preferred method of work in the air cargo industry.

 

 

Wishing all of you success and prosperity in 2017!

 

 

Vladimir D. Zubkov
Secretary General

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View from the Board by Sanjiv Edwards

Posted By Administration, Friday, January 6, 2017

 

 

 

 

Dear TIACA Members and Colleagues

 

Wishing each and every one of you a very Happy New Year. May 2017 be filled with Happiness, Health, and Success in all that you resolve to do.


 

As Chairman of the TIACA Board I want to share just a few reflections:
 

 

The ACF Paris was a great success in terms of participation, Industry feedback, and positive media coverage.

 

TIACA further strengthened our relationship with regulators like the International Civil Aviation Organization (ICAO) by aligning our objectives and establishing an agreement that will see them working with TIACA on four key projects, a first of its kind.

 

We continued our Air Cargo Professional Development workshop program.

Our initiative for increasing geographical engagement through the LEADS event at ACF got off to a good start, with participation from senior leaders from almost a dozen countries at the first event itself.

 

We still have a long way to go and our priorities in 2017 will be:

  • Membership engagement strategy to retain current membership, and also working on adding new members – with a special focus on Trustees and Corporates.
     
  • Delivering a successful Executive Summit and Annual General Meeting October 18-20, 2017 – in all respects
     
  • Develop advocacy and build our relationship with ICAO by focusing on the projects – this can form the basis of closer engagement with them. Look out for similar opportunities with the World Customs Organization (WCO) also.
     
  • Increase visibility and geographical reach for TIACA through events and local/national level engagement.

 

Thank you once again for your involvement and we look forward to having an excellent year in 2017.
 

 

Sanjiv Edwards

TIACA Chairman

Tags:  Sanjiv Edward  View from the Board 

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Secretary General's Update - Working together & Engaging

Posted By Administration, Thursday, January 5, 2017


 

Dear TIACA members and all the participants in the air cargo industry! From 1 January 2017 I will be doing a very challenging job of TIACA’s Secretary General. 

 

Thinking about the major objectives, I recall the most frequently pronounced words from the platforms of TIACA’s Executive Summit along with ACF, IATA’s WCS, AGM, and other major air cargo industry fora.

It’s: “working together” and “engaging”. The understanding of the importance of global collaboration is there. The practical realization of this vision is not. There is still a big divide between the regulators and the “does” in the air cargo industry as well as between the demands coming from the regulators in different countries. No need to explain the consequences – you know then too well.

 

I consider one of the major common tasks for 2017 – from proclaiming the need of “working together” to truly intensify the practices of working together.

 

I am starting my year by meeting the top officials of ICAO to discuss the issues of dangerous goods, AVSEC and FAL, joint regional conferences aiming at the implementation; technology, solution, and cooperation with other major aviation and aviation related organizations: IATA, ACI, SITA, WCO, WTO, as well as regional development agencies. 

 

I will be reporting to you about the outcome of such meetings, looking for your views and advice. 

 

I wish all of you a prosperous and Happy New Year!

Vladimir Zubkov
Secretary General

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Secretary General's Update - General Kelly Expected to be Nominated as Secretary of Homeland Security

Posted By Administration, Thursday, January 5, 2017

General Kelly Expected to be Nominated as Secretary of Homeland Security

 

According to several press accounts, President-elect Donald Trump will nominate retired General John F. Kelly to be the next Secretary of the Department of Homeland Security (DHS). DHS includes both the Transportation and Security Administration (TSA) and U.S. Customs and Border Protection (CBP), agencies with significant regulatory reach over air cargo (as well as several other agencies. Nominees to lead TSA and CBP have not yet been announced - and may not be until sometime in 2017.

 

General Kelly spent his entire career in the military, retiring last February from the Marines. His last assignment was as head of the U.S. Southern Command. Kelly has expressed concerns about terrorism, immigration and other cross-border issues that he would oversee as DHS Secretary.

 

DHS, with over 240,000 employees, is the third largest Cabinet department. Kelly must be confirmed by the Senate in order to assume leadership of DHS. His confirmation hearing is not yet scheduled but could take place early in January, prior to Trump’s inauguration.

Doug Brittin
Secretary General

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Doug Brittin - A fond farewell!

Posted By Administration, Thursday, January 5, 2017

As this will be my last message in which I contribute a message to the Friday Flyer prior to my retirement at year-end, I wish to voice my pleasure with the tremendous experience it has been to work with such fine, dedicated industry professionals for the past 36 years.

 

We have come a long way in the past few years, building upon the solid foundation and reputation TIACA has established in the past. We’ve become a recognized global leader and voice of the full spectrum of industry interests, especially in the global regulatory arena, which itself is becoming increasingly complex and inter-related

 

We’ve continued to add new members in a time when industry conditions warrant a close look at how money for such activities is spent is even more closely monitored. Our Forums and Executive Sessions have received strong praise for the high level of topical and relevant content.For ACF 2018, we’ve already announced our partnership with the new Multimodal Americas event at the same venue, bringing to the floor an even wider range of new exhibitors and participants.

 

And although we’ve heard of it for a long time, I feel that we have done a tremendous job in ensuring that complicated ideas that have evolved from ACAS to a global PLACI, have not been implemented without the engagement of industry leadership. Holding off until we get it right, is by far the most important thing we have done in this area!

 

This past week, my successor Vladimir Zubkov accompanied me to meetings with the Transportation Security Administration to discuss ongoing regulatory challenges as well as how to improve collaboration with industry leaders to ensure a better future for the global air cargo community.This will, of course, be an ongoing effort with regulators around the world.

 

Vladimir has committed to continue working closely with the regulators and key international organizations, including ICAO, IATA, the World Customs Organization (WCO), freight forwarder organizations, and all other regional and global industry partners, to ensure that the new regulations are implemented in a uniform way to the greatest extent possible, which is no small challenge as we know.


Doug Brittin
Secretary General

 

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Secretary General's Update - Cargo Screening: Doing our part in the bargain

Posted By Administration, Thursday, January 5, 2017

As we all know, the industry has worked hard with regulators globally to enable cargo screening to be conducted throughout the supply chain, thus avoiding the logjams at airline facilities and airports that would likely occur if carriers were the only entities authorized to perform this vital function. As a result, in many countries regulated agents, shippers, and other parties are now able to screen shipments, adding greatly to efficiency and security of air cargo shipments.


In order for this to continue, all of us must do our part to ensure full compliance with all policies and procedures. We must continue to demonstrate to regulators that we are fully capable in this effort, in light of continually evolving threats to aviation.

This means that we cannot let our vigilance erode in any manner. Our implementation, training and audit procedures need to continue to be at the top of our game on a daily basis. Where we see vulnerabilities, we must move quickly to correct them. Share best practices wherever possible. If in doubt, reach out to your regulatory partners to seek the best solution. 

We’ve come a long way, but must always do our part to secure our business, and our future.


Doug Brittin
Secretary General

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Embracing the Cloud by John Debenedette

Posted By Administration, Friday, December 2, 2016
Updated: Thursday, December 1, 2016

Chairing the panel ‘Embracing the Cloud’ at TIACA’s ACF was enlightening. To kick things off I asked for a show of hands from the audience to indicate who actually uses the cloud for day to day operations. Half of you are dabbling in Cloud solutions for commodity apps like email but it turns out that when it gets to business apps, the majority of our colleagues are still using pre-Cloud models!


So what’s stopping us?
Two major concerns became clear: an aversion to the disruption Cloud solutions tend to bring to every industry they touch, and the initial short term costs associated with adopting them. Unaccustomed as an industry that we are to change, there was much discussion around the trend of cloud apps enabling disruption and new business model 

they spark within many industries. However, when we are the drivers of such change, there is no need to fear it! Tight margins and fixed short term costs are another long standing issue within our industry and this certainly came to light here, seeming to overshadow the long term financial benefits of making the change.

Why should we pay attention to Cloud...?
Global spending on Cloud infrastructure and services is expected to reach USD235bn by 2017 (IHS) and, by 2018, it is estimated that more than 60% of enterprises will have at least half of their applications and infrastructure on Cloud-based platforms. The percentage of small businesses engaging Cloud computing services is set to more than double by 2020, from 37% to almost 80%. In a survey published in February this year, 90% of respondents said their enterprise companies plan to increase or maintain their cloud computing budgets.

I outlined clearly, with real life examples, the benefits of moving to the Cloud:

  • Flexibility – operational agility and easy to scale up cloud capacity
  • Disaster recovery – cloud-based backup and recovery solutions save time and money
  • Automatic software updates – suppliers look after system maintenance
  • Capital-expenditure free – enjoy a subscription-based model that’s kind to your cash flow
  • Increased collaboration – access, edit and share documents anytime from anywhere
  • Document control – all files stored centrally and everyone sees one version
  • Security – access your data no matter what happens to your machine
  • Competitiveness – act faster than big, established competitors
  • Environmentally friendly – only use the energy you need and don’t leave oversized carbon footprints

Industry endorsements of the Cloud Head of Cargo at Amsterdam Airport Schiphol Jonas van Stekelenburg, sitting on the panel, gave testament as an air cargo hub in the midst of several Cloud

based data projects. He explained that Schiphol’s experience with its e-freight program e-link, and its newly established Holland Flower Alliance shows stakeholders are more than willing to share data, if it means an improved supply chain and ROI. Other comments from the panel, which included representatives from IATA, Hub One, and Pros, Inc, included the important observation that having your data on a Cloud system does not always mean that is being shared.

Patrice Bélie, Chief Executive Officer, Hub One mentioned that he was hopeful that cloud adoption would make it easier for our industry to overcome working in silos. He concluded that cloud technology will help but it’s also about data ownership and the way companies think. Celine Hourcade, Head, Cargo Transformation program, IATA backed Patrice's point, adding that IATA is moving beyond e-freight and document formats to the next level with a new initiative called Digital Cargo. “Digital cargo focuses precisely on the processes, meaning, and ownership of data and will be useful to help the industry take sharing information to the next level,” she said. Zeke Ziliak, Executive Account Manager, PROS, Inc told the panel that they sell their products both in pre-Cloud and Cloud configurations and an increasing number of customers appreciate the Cloud model because they don't need to requisition capital or deal with hardware. “Our sales process and of course the speed at which the customers obtain value is so much faster,” he added.

At this point I commented that the problem may be that industry believes it is ahead of the curve with Cloud technology, early as we were to adopt automated processes. Modern business landscape tells a different story however, and we are being left behind as other industries move forward. We must not rest on our laurels! As Jonas van Stekelenburg commented – “the skillset of any team will experience a shake up and refresh when new platforms are introduced; it is all part of the journey toward better quality.”

It was great to be involved in such an innovative discussion, and hear the progress being made in adoption of Cloud technology.
Thanks to all who attended!

John Debenedette

Managing Director

Worldwide Information Network (WIN)

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Keeping Peak in Perspective by Frank Newman

Posted By Administration, Tuesday, November 22, 2016

As we move toward the Holiday Period and what we often refer to as “PEAK” within the Airline Industry it might be good to remind all of us to keep our focus on the areas we can control.

 

We pride ourselves as an Industry of speed and often the items we carry are of the utmost value, or their velocity requirements driven by the urgency of their mission make them key for Air Transport.  It is so easy to forget that we are not alone in our desire to serve our customers, but are part of greater team, and our role is just one player in the daily quest of serving our customers.

 

Several years ago I was traveling on a bus of Airline Executives headed to the golf event that was part of the TIACA Air Cargo Forum being held in Spain.  The golf course was a fairly long bus ride from the event venue so all on the bus were using the time to catch up on emails or discuss pressing business with their colleagues.  Few on the bus were paying any attention to the beautiful countryside we were passing through.  After a couple hours one of the Executives on the bus raised his voice to announce to all on board that we were coming up on a field filled with critically important people.  He got our attention… and as we approached the field and it came into view what we saw was a cemetery.  We got his message… and all onboard put away our mobile phones or tablets and we started to look around… and began talking with our colleagues not about the business but about each other.

 

I often think of that lesson when I get my perspective out of focus, and the challenges of the day seem to be the only thing that is important.  As we enter the next few months when days are filled with every changing and increasing demands… and we are all trying to outfox the weather, or figure out how to move more freight than our networks may be designed to carry, all the while getting multiple customer calls about an ever more important shipment that must make it to destination today… you may want to think of all the folks that have gone before us… that have left us… and yet we still carry on.

 

It is gaining that balance between work and family, that we all know is so important, but we all fall victim to the demands of the day and forget to keep it in perspective.  Take some time to remember, we are not alone in our desire to serve our customers, we have colleagues that can help, and we have to keep that most important sense we possess… a sense of humor.  We need to say thanks more, and know that others have faced what we face and others will face it in the future so let’s do what we can, but with a smile and kind word.

 

After all the holidays are about giving thanks, and spending time with our families and friends.  So however each of you keep things in balance; there is probably no better time than PEAK to remind yourself of keeping everything in perspective.  Smile more…it takes fewer muscles, and if nothing else it will keep the competition guessing and your family, friends, and customers happy.  We are here for a limited engagement, let’s enjoy the show, and it is ok to keep the audience laughing even during the tough times. 


Frank Newman

Managing Director at FedEx Services

TIACA Board Member

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Tiaca appoints Vladimir Zubkov as new Secretary General

Posted By Administration, Thursday, November 17, 2016

Vladimir Zubkov will be TIACA’s new Secretary General, replacing Doug Brittin, who retires at the end of the year.

Zubkov has more than 40 years’ experience in the air transport industry, including senior roles with the International Civil Aviation Organization (ICAO), and, most recently, as Vice President of the Volga-Dnepr Group of Companies.

He has been a member of the TIACA Board since 2011 and is the Chairman of the Industry Affairs Committee, as well as a member of the Global Air Cargo Advisory Group (GACAG) and the International Air Transport Association (IATA) Industry Affairs Committee.

“I am honored to be leading the only organization that represents all parts of the air cargo supply chain,” said Zubkov.

“Building on Doug’s successes with the regulators and key international organizations, we will continue to work closely together with ICAO, IATA, the World Customs Organization (WCO), freight forwarder organizations, Airports Council International (ACI), and all other partners, to ensure that the new regulations are implemented in a uniform way across the industry.

“We recognize that TIACA needs to grow its engagement in territories where it is under-represented such as the Far and Middle East, Latin America, and Africa, and we will focus on recruiting more members in those areas.

“We must also continue to push for the modernization of the industry, championing e-commerce and e-freight penetration and talking convincingly to the World Trade Organization (WTO), the United Nations Conference on Trade and Development (UNCTAD), regional development banks, and relevant regional organizations to form new alliances in order to drive faster and more complete adoption of e-freight.”

Before joining Volga-Dnepr in 2008, Zubkov spent over 20 years with ICAO, where he was Director of Air Transport Bureau and later Director of Planning and Global Coordination.

He worked for ten years with Aeroflot, and began his career at Moscow Sheremetyevo Airport. He has a Master’s degree in Air Transport Management from the Civil Aviation Academy of Leningrad.

He has led working groups focusing on the introduction of a paperless environment for cargo transportation in both Russia and the Asia Pacific region, and has helped with the development and implementation of projects globally involving communications, navigation, surveillance and air traffic management (CNS/ATM) satellite-based technology.

“Vladimir’s wealth of experience in both the private and regulatory sectors will prove invaluable to TIACA, whose mission is to bring the entire global air cargo community together,” said Sanjiv Edward, Chairman, TIACA.

“We are fortunate to welcome an individual with so much knowledge and passion for the industry to our leadership, and look forward to working with him.”

Zubkov will take over formally as Secretary General in January, with Brittin remaining in an advisory capacity during the handover.

He was appointed, following an application and evaluation process, by TIACA’s Nominations Committee, headed by Sebastiaan Scholte of Jan de Rijk Logistics.

Tags:  Secretary General  TIACA  Vladimir Zubkov 

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View from the Board by Kwang-soo Lee

Posted By Administration, Friday, November 11, 2016
According to ACI-complied statistics, Incheon Airport ranked in the world's top 3 in terms of international cargo volume by handling approximately 2.6 million tons in 2015. Yet, lately Incheon Airport is facing risks of a protracted slump or decline in cargo demand in the wake of the changing landscape of air cargo business. 
 
As Korean manufacturers that have significant demand for air cargo are moving their production bases offshore at an accelerated pace, outbound export volume is declining or being converted to potential transshipment opportunities. Hence, airports are urgently expected to play proactive roles in fostering demand for air cargo service. 
 
From the global supply chain perspective, to increase air cargo volume an airport needs to be a transportation hub processing carrier-centric transshipment cargoes; or a distribution hub supporting import and distribution activities for the regional consumer market; or a global supply chain hub providing comprehensive support for logistics activities crucial to supply chain management of global enterprises. 
 
Air cargo demands of a carrier-centric transportation hub depend on the cargo turnover of the primary air carriers. The airport's function as a cargo hub is compromised if air carriers modify their network operation strategies. Transportation hubs are limited in their effectiveness at creating added value from landing fees, transshipment services fees, etc. In contrast, global supply chain hubs can create transshipment demand continuously, irrespective of the host country's export/import demands, and they are highly effective in creating jobs by operating storage/distribution/delivery centers of global enterprises. In terms of added value creation, supply chain hubs can foster a variety of business opportunities related to inventory management, packaging, distribution, and so forth. 
 
To be morphed into a global supply chain hub, an airport needs to invite global forwarders who will use it as their logistics base. When logistics firms make a decision on their business location, most important factors are promptness and cost-effectiveness. Promptness of air cargo shipping, ground handling service, and customs clearance plus cost-effectiveness of logistics processing covering air freight charges, infrastructure investment/lease costs, other labor costs and ground services fees also prove to be important in the decision-making process.
 
What should airports do to attract global forwarders? I have deliberated over this question recently. I am very excited to meet many forwarders in the upcoming ACF event to be held in Paris to have a more in-depth discussion to that question. 
 
Kwang-soo Lee
Vice President
Incheon International Airport Corporation

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Secretary General's Update - Interest in Canine Screening Grows

Posted By Kimberly V. Peters, Friday, November 11, 2016
The effectiveness of canine screening for aviation security is gaining new attention in the United States. TIACA has long advocated for greater use of canines in air cargo screening, as they are the only currently available screening option well suited to the heavy volumes and rapid pace of air cargo operations, and for large, non-traditional configurations. We are working with industry colleagues and our sister associations to seek TSA support for expanding the use of canines (for example, by allowing for third party training and operations) and to obtain larger funding allocations for canine screening. We believe that increased canine screening, similar to what is in place in other countries, is especially important given a recent ICAO decision that clarifies Annex 17 requirements for supply chain security for all-cargo flights. This clarification could result in some modified national security screening requirements for all-cargo flights, and deploying canine teams could help ensure compliance and effectiveness without constraining the flow of cargo, which would be challenging with current technologies available.
 
The Washington Post recently published a Sunday magazine cover story entitled, “The Scent of Danger: Man’s best friend may be our best bet for preventing attacks.” The lengthy piece extolled the effectiveness of dogs as screeners, and mentioned TSA’s plans to deploy additional teams for a variety of tasks. While the article focused on the passenger environment, it referenced TSA’s use of canines to screen cargo and detailed the canine/handler training process. To read the full article, [click here].
 
TIACA will continue its advocacy on this issue and will report significant developments to our members.

Tags:  Interest in Canine Screening Grows  Secretary General's Update 

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View from the Board - by John DeBenedette

Posted By Administration, Friday, November 11, 2016
Analysts tell us the number of people using smartphones, already over two billion, is expected to double over the next five years. What's more interesting is the length of time people spend using these devices each day, which depending on country and age group can range from one to over four hours.
 

Hard to believe? Not really when you consider our reliance on apps for email, social networking and communications. Add in apps from banks, passenger airlines and other mainstream B2B and B2C providers we all use regularly, plus news, media and entertainment.

 

In comparison there are relatively few smartphone apps on the business end of air cargo to initiate and track shipments, aside from those offered by a few post and parcel operators. Fortunately for air cargo users, this space is starting to get some attention.

 

Aviation is a high tech industry employing more than our share of rocket scientists and the physical side of air cargo shares this heritage. Automation for handling, safety, security, and back-office optimization is fairly robust. Why then do we lag so far behind on the commercial front-line at the intersection between shippers, forwarders and airlines? 

 

Are we held back by the same systems and private network providers which decades ago enabled growth and interoperability but today siphon off our innovation dollars by still charging by the character to transmit short text messages representing bookings, air waybills, and related transactions? When can we expect the mobile revolution to impact air cargo and how will it affect us when comes?

 

One thing B2C and other B2B sectors have in common is their adoption of cloud-based systems and free, ubiquitous internet communications. Should our path forward be similar?

 

These questions and many more will be discussed at the Air Cargo Forum in Paris on October 26, 2016. A panel discussion on Embracing the Cloud will explore this trend and its impacts on security, productivity, costs and innovation.

Looking forward to seeing you in Paris.

 

John DeBenedette

TIACA Board Member

Managing Director, Worldwide Information Network

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Secretary General's Update - Brexit – some thoughts on the Customs and trade policy consequences

Posted By Administration, Friday, November 11, 2016
After the completion of the Brexit, the trade between the EU and UK will likely increase in complexity and create new risks and trade barriers. Although it is still too early to know, any of the following scenarios could be possible:
 
The UK status would change from EU member to “third party country”. The UK would then no longer be able to operate under the rules of the treaty on the functioning of the European Union. Instead, they could only rely on the rights based on their WTO membership. That would mean the EU would then automatically execute customs formalities similar to those in effect towards other third party countries.
 
Free Trade agreements between UK and EU could certainly help to overcome the fact that duties would have to be paid, but those would only cover and create benefits for the transportation of origin goods of both contracting parties. The consequence of this would be that deliveries would need to be accompanied by a proof of origin, an additional process. A loss of the customs tariff preference of the UK towards the EU could also be a result.
 
To cover non-origin goods the creation of a customs union between UK and EU could be a possible solution. A requirement for such a union would be the acceptance and adoption of the common EU customs tariff by the UK (even though the UK has no influence on its development). Nevertheless customs formalities would need to be executed. For example, in the case of duty unpaid goods which could be handled via the New Computerized Transit System (NCTS), there would now have to be a corresponding guarantee between the partners in the transaction itself, if the UK affiliates the common transit simplifications.
 
As the EU Customs legislation would not apply for the UK anymore, the UK would need to create their own customs code or tariff. Alternatively, the UK could adopt the EU Customs Code, as well as establishing a common customs tariff.
 
Exporters from the UK would need to apply for an indirect representation in the EU in order to issue a Custom declaration. 
 
Beyond these Customs issues, conventions in regard to safety and security regulations would need to be arranged, possibly similar ones as with Switzerland or other States. Otherwise summary declarations within given time limitations would be required for import - and export. Depending on the outcome and direction, it is also likely that the US TSA will need to review/revise its Aviation Security Mutual Recognition cargo agreement with the EU, which currently includes the UK. 
 
These of course are preliminary thoughts, and only reflect on some parts of the issues trade might face as this unfolds. We are far away from understanding all of the possible permutations and challenges.

Tags:  Secretary General's Update 

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Secretary General's Update - US Indirect Air Carrier Standard Security Program

Posted By Administration, Friday, November 11, 2016

The much anticipated release of Change 6 to the US Indirect Air Carrier Standard Security Program (IACSSP) for TSA-regulated freight forwarders (IAC's) with operations in the United States or its territories, has been posted to the Indirect Air Carrier Management System (IACMS) today. I strongly encourage those in this category to review the document and submit your comments, as directed, to the TSA. There is a 30 day period open to the regulated parties for comment on the proposed changes, which closes on Sept 7th, 2016

 

TIACA will be reviewing this proposed change as well and submitting comments to the TSA.

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