TIACA supports liberalization of air cargo and express services for unfettered market access. Bilateral negotiations should be unrestricted as to the ability of air carriers to move air cargo in any international market between two points anywhere in the world.

TIACA believes that air cargo and express transportation are economic development tools. Air cargo and express transportation facilitate the movement of goods between all markets.

Where liberalized all-cargo transportation traffic rights are available, TIACA believes that a separate all-cargo bilateral should be pursued as the first step towards market liberalization and openness. Often developing countries see the advantages of market openness for the movement of goods before they recognize the same advantages on the passenger side. Such openness should be balanced and should be enhanced strictly for economic reasons.

Where efforts to separate all-cargo operating rights from combination rights, including passenger service, are deemed to be more practical, specifically in developing markets, such all-cargo bilaterals should not be held back by restrictions brought about by developing countries in an effort to protect national carriers’ ambitions on the passenger side.

Present bilateral negotiating structures often inhibit the growth of air cargo, due to political and structural resistances. It is TIACA’s intent to make a modest shift in the current bilateral log jam which might lead to a general application of open skies, based on a balance of benefits to both markets, which may encourage wider liberalization. Positive progress towards multi-lateral freedoms for cargo would support the current parallel work on liberalization principles in the OECD and discussed in the Trans-Atlantic Common Area negotiations between the EU and the USA.

TIACA believes the initial stage in a long-term strategy could be an agreement between those countries that support the principle of severance of cargo from passenger rights, and have identified the potential economic benefits of a more open and competitive air cargo market.

Under this approach, a new generic agreement for all-cargo flights would grant the same rights and privileges, on a reciprocal basis, to all signatories. Such liberalization for all-cargo rights, however, should in no way restrict the ability of combination carriers to obtain similar bilateral rights for both passenger and cargo service. There are circumstances where, politically, the granting of such all-cargo rights must be undertaken in parallel with combination carrier openness and TIACA understands this reality and the possible need to exclude cabotage from this particular instrument.

Benefits of liberalized agreements would be open to all carriers, irrespective of national ownership. A mutually acceptable supervisory body should be responsible for the transparent and equitable operation of all resulting agreements.

The aim is the establishment of a multi-lateral group of countries permitting fifth, sixth and seventh freedom rights. Support is confidently expected from countries that already operate ‘open skies’ as well as those that have no existing national air carrier to protect. Such countries therefore have a need for openness in their markets with the hope of developing their own liberalized cargo services, either by combination carriers or all-cargo carriers.


b) Security

Security and safety underpin everything in the worldwide air cargo industry.

The highest standards of operational security and safety are inherent in the very nature of air transport and have, for many years, been subject to the most stringent international regulation by ICAO and other inter-governmental authorities.

In the present special climate of anti-terrorist security legislation it is extremely important for national and international regulators to distinguish between the scope and nature of incidents experienced and threats reasonably foreseen in respect of passenger and cargo operations.”

TIACA will actively support measures that are proven to improve airport and air cargo security. New initiatives, however, must be effective, workable, and affordable and create a minimum of disruption to the flow of air cargo that has to set its core advantage of speed in flight within a consistent context of rapid reliable delivery.

If we allow changes in security procedures that fail to meet the criteria set out above, we risk creating an environment where transport and, therefore, trade is disrupted.

If security procedures frustrate and devalue these air cargo characteristics the now large proportion – at least 30% - of international trade that depends on just-in time movement of materials, components and products within integrated global company and associated sub contracting systems is bound to be disrupted, along with the inter-continental overnight express delivery services that are now an essential business and administrative facility.
Such interventions will stifle commercial innovation, discourage investment and lead to unemployment and economic downturn. That is what terrorist groups want to happen. We must work together to ensure they never fulfill their objective.

TIACA’s Security Policies, summarized below, aim to stimulate sensible debate and action on this vital issue and set out a way forward that can further improve aviation security and safeguard the future of air cargo at the heart of world trade.

1. Security, as a global requirement, must be threat-based and operationally consistent to be effective.

2. Security agencies should understand and make the best use of the resources and expertise which global trade and transport operators have developed and are constantly enhancing to meet their own exacting commercial and security requirements.

3. Responses to threats should be managed as far as possible to sustain high levels of consistent vigilance and to avoid sudden calls for extreme caution without helpful guidance as to the form of the threat that may be expected. Restrictions and controls should be reasonably and visibly related to the threats they are intended to counter.

4. While sudden, unexpected developments could justify urgent unilateral action, broad security strategy and related legislation should be based on systematic consultation with responsible business interests. National legislation, which could have significant extra-territorial effects, for example import controls applied at or before export, should provide for consultation, which will include representatives of the wider trade community.

5. Consistently high standards of physical and data security, reflected in compliance records and regular audit results, should secure simplified processing for formally authorized traders, carriers and intermediaries. The aim should be to bring market forces behind control systems. Such arrangements should avoid requirements for fixed periods of previously recorded activity. Associated exclusion from simplified procedures will add unjustifiable extra handicaps to start-up operations, particularly significant among small and medium sized enterprises.

6. Sensitive, well managed risk-assessment and good supporting intelligence is the key to efficient border security operations. We counsel the greatest caution in recourse to very expensive and relatively isolated Customs computer systems beyond the financial means or operational management of all but a few developed economies and excessive reliance on advanced scanning and satellite monitoring systems, especially where these may be confided to inexperienced and sometime untrustworthy Customs services.

7. TIACA is calling for the creation of a global regulation review process to coordinate and harmonize security controls on a worldwide basis to avoid the multiplicity of regulations the industry is currently faced with.

c) Customs and other Official Agencies

The movement of airfreight consignments is subject to and dependent on the predictability and performance of Customs and other official border agencies at least twice in every international transaction. The quality of such official interventions is a prime factor in the success or failure of the overall delivery process.

Airport performance, for example, in handling freight expeditiously and safely is dominated by the efficiency of on-site border controls. Poor performance, stemming from bureaucratic inefficiency will, inevitably, sabotage growth and employment prospects.

In many countries, Customs handle large sums in import duties and taxes and exercise wide legal powers and measures of discretion. In many instances, they have proven to be a focal point for bribery and corruption. It is unrealistic to look for efficiency without first raising ethical standards. TIACA is therefore, devising and promoting policies in support of:

1. Integrity, transparency and predictability in the application of official, especially Customs, regulations.

2. Single agency responsibility for the various types of frontier controls, for example, collection of statistics and security, dangerous goods, immigration, public health and phyto-sanitary controls, with a strong preference for continued prime responsibility assigned to Customs.

3. Rapid release of cargo for onward movement on the basis of a minimal set of standardized data, leaving full clearance procedures for later attention by the trader.

4. Modern risk-assessment control systems, offering especially simple ‘Premium’ procedures to compliant traders and carriers.

5. ‘De minimis’ arrangements, providing an immediate ‘green channel’ release and clearance system for consignments falling below a certain level of dutiable value.

6. Special procedures for the fast movement of aircraft spare parts and service equipment.

While making its own voice heard, TIACA is working with other, like-minded organizations to support continuing modernization by high-quality official border agencies and to bring about urgent improvements in official integrity and efficiency elsewhere.

II. Industry Performance Standards

AA detailed and authoritative IATA report established that, in 1974, a representative sample of airfreight consignments took an average of 6 days from origin to destination of which only eight hours were allocated to actual flight-time and twelve hours to useful movement on the ground.

The remaining period was taken up in delays at functional interfaces, of which one-third was attributable to preparation for and compliance with Customs requirements.

Recent research shows no improvement in these figures, which represent unnecessary handicaps on airfreight markets and profit margins.

TIACA sees an urgent need to bring overall origin/destination timings much closer to our core speed-through-the air commercial advantage by raising efficiency at main functional interfaces.

In addition to the references made under ‘Customs and other Official Agencies’, TIACA plans to secure improvements at interfaces with border controls. These must be accompanied by parallel reforms to the remaining two-thirds of overall delay, which arise within the commercial logistical chain.

The CART Report also identified a basic requirement for timely, reliable information to manage and service the entire delivery process.
TIACA proposes to meet these criteria by –

1. Setting minimum quality levels for commercial and official performance at all points of the logistical chain and raising these, over time, to encourage consistently higher efficiencies and offer optimal delivery and information services to customers.

2. Working with shippers’ councils, standards bodies, trade associations, inter-governmental organisations and others to develop and promote such performance standards.

3. Establishing a certification system to offer brand advantages to operators applying the highest standards.

TIACA will consult with IATA and other relevant interests to consider how the seminal information furnished by the CART Report can be updated and supplemented to guide and assess the implementation of effective airfreight performance standards.

TIACA proposes to meet these criteria by –

1. Setting minimum quality levels for commercial and official performance at all points of the logistical chain and raising these, over time, to encourage consistently higher efficiencies and offer optimal delivery and information services to customers.

2. Working with shippers’ councils, standards bodies, trade associations, inter-governmental organizations and others to develop and promote such performance standards.

3. Establishing a certification system to offer brand advantages to operators applying the highest standards.

TIACA will consult with IATA and other relevant interests to consider how the seminal information furnished by the CART Report can be updated and supplemented to guide and assess the implementation of effective airfreight performance standards.

III. Environmental Concerns

While the contribution of air cargo to overall traffic noise and air pollution in major conurbations is happily modest, TIACA sees a special need to identify and tackle certain issues arising directly from some types of airfreight operation.

It is, for example, essential to develop environmental policies providing a sensible relationship between individual citizen needs for acceptable noise and pollution levels with what, in airport operation, may seem conflicting considerations of employment, service supply and access to the work place.

These pressures will grow rather than diminish. Governments and local authorities have to find sensible ways of balancing them.

TIACA will be urging constructive, long-term measures as the only credible alternative to isolated ad hoc attempts to strike temporary, local adjustments between economic and environmental counter currents.

Regarding noise regulation, TIACA will support the full implementation of the Balanced Approach, as crafted by ICAO at the 34th Assembly, in evaluating proposed regulatory measures. For emissions, such long-term measures can include increased government support for research and development regarding technological measures to streamline air operations and support for incentives to explore alternative fuels for commercial aviation. Such measures should precede imposition of market based measures for aviation or the imposition of taxes or charges on air cargo operations.