question of the month
What should the air cargo industry be doing differently if it is to secure a greater share of the international freight transport pie?
STANWRAIGHT Managing partner,
Strategic Aviation Solutions International
“After 40 years in this business, I look around and we are still facedwith the fundamental truth that no matter howhard the industry tries,we are still in silos that dictate our ability to offer a competitive product and threaten its survival. “Airlines: For themost
part, carriers are passenger-driven and with cost structures that cannot support cargo as they strive tomeet ever- rising passenger product offerings. Cargo is a by- product of passenger flights and thismeans inefficiencies and insufficient investment. “Forwarders and
“A career in cargo for a scheduled airline or airport should be prestigious and professional”
logistics companies: Their operations are based on the airport hubs of legacy carriers; forwarder facilities aremaintained in high- cost areas and even newones built around old, cargo- unfriendly airports. Airlines are facedwith lower yields if these airports aren’t used, and they are penalised if they try innovative solutions. Operations to these airports are cost-prohibitive and punitive to airline economics, due to a lack of 24/7 capability and high fees. The spotmarket overrides any commitment for a long-termagreementwith the airlines. “Airports: These are driven by fees fromthe airlines,
and not treated as national or regional assets as they should be by governments and local authorities. There is a lack of understanding of the reality that cargo is not a nuisance, and that special considerations are required. “A career in cargo for a scheduled airline or airport
should be prestigious and professional and recognised as such, as it is in an integrator, all-cargo airline or forwarder.Without thiswewill never attract and train the leaderswe need to be able tomaintain the existing share, nevermind growthe business.”
2 AIR LOGISTICSCHINA 2
DAVE LUCIA President,
Security Cargo Network
“The air cargo industry should stop acting as though it is above the dictates of reasonable customer service – even though by lawand custom it apparently and sadly is. “I ampresentlymediating
a dispute between two freight forwardermembers of Security Cargo Network over air freight charges for a shipment that took 30 days to reach its destination and then arrived in several lots, although itwas shipped as one. “Despite the time-
“In short, I think the industry needs more accountability”
sensitive nature of the cargo and the complete dissatisfaction of the consignee, the airline could notmuster somuch as an apology, let alone any concession. “This incident promises to result in a loss ofmany
thousands of dollars to the companies involved,while the carrier goes on itsmerryway, probablywreaking more havocwith customer relations for other users. As one of ourmembers puts it, ‘We all knowthat the airlines have thewhip hand.’ “If forwarders could havemore confidence that they
would have some compensation for their customer should lift space or error become a factor in the timely delivery of the cargo, theymight sell it over surface or oceanmore enthusiastically. “As long as they feel that they have no option but to
pay once the shipment is in the system, certainly they are going to counsel their customer about alternatives. “In short, I think the industry needsmore
accountability,which itmight have if IATA/CASS did not provide itwith such a solidwall to hide behind.”
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