NEWSWEEK E-commerce growth threatens parcel security effectiveness


requirement for information prior to arrival at the port of entry. Speaking at the Universal Postal Union (UPU)’s postal secu-


rity group meeting in Bern (Switzerland), Brittin says: “With mail parcels, we are potentially dealing with a different type of ship- per, and we are looking at significant and growing volumes. This may lead to a high percentage of shipments designated for addi- tional security screening.” Brittin also told the group that the air cargo industry and postal


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dvance data filing regulations are being challenged by the rapid growth of mail parcel volumes due to e-com-


merce, according to The International Air Cargo Association (TIACA) secretary general, Douglas Brit- tin (see picture).


Advance data filing regulations require individual shipment


information to be submitted to destination regulatory agencies in advance of transportation, rather than the current customs’


Future is ‘reasonable’


THE OUTLOOK is reasonably optimistic, according to the International Air Transport Association (IATA)’s Airlines Fi- nancial Monitor February figures. While 2014 got off to a strong start, says IATA, airfreight volumes in February were down compared with January. The fall, however, is likely to be due to temporary factors rather than a trend change. Key drivers of airfreight demand, such as world trade and business confidence, remain solid. Recent improvements in airfreight load have slowed


slightly, but levels are still above the low point seen during mid-2013. This recent improvement in load factors has been supported by stronger demand. Overall, however, lev- els are low, barely above 45 per cent, IATA found. February performances varied across the regions. Africa’s


freight tonne kilometres (FTK) fell by 5.2 per cent year-on- year, with North America also slipping, by 0.3 per cent. The picture was brighter in the Middle East, Latin America and Europe, with year-on-year growth of 11.9 per cent, 6.1 per cent and 5.5 per cent, respectively. FTKs in Asia Pacific were stable, up by 0.1 per cent.


Africa alone saw a decrease, down by 1.5 per cent, while


the most significant increase was in the Middle East, where FTKs rose by 11.3 per cent. Industry financial results in the final quarter of the 2012 to 2013 financial year show solid operating profit improvement, driven by the US, according to IATA’s figures, although weakness in cargo demand has badly hit airlines in Asia Pacific.


Cartel fine hits $10m


KUEHNE + NAGEL (KN) has been fined 3.1 million New Zealand dollars by the High Court in Auckland (New Zea- land), bringing the total to 11.9 million dollars ($10.3 million), to be paid out in fines by freight forwarders pros- ecuted by New Zealand authorities for being in a cartel. Swiss firm KN is the last defendant in a case brought by New Zealand’s Commerce Commission against six inter- national freight forwarding companies accused of cartel behaviour.


The other five defendants admitted their role in the car- tel and paid penalties in 2010 and 2011. KN challenged the Commission’s jurisdiction, but was unsuccessful in both the High Court and Court of Appeal. According to the Commission, KN has admitted to being part of a secret cartel that called itself the Gardening club. The Gardening club agreed to charge surcharges on airfreight forwarding services from the UK to countries, including New Zealand, ostensibly to cover the costs of increased security measures imposed in the UK. The cartel participants agreed to each pass on certain costs to customers, rather than compete in the usual way by determining their own pricing structures and price levels.


ACW14 APRIL 2014 5


operators needed to continue working closely with customs and civil aviation security regulators to ensure new data submission regulations and screening protocols are standardised and can work. He adds: “A shipment may be only one piece in a Unit Load Device (ULD), but may be required to be found, off-loaded and screened. We need to work to ensure standardisation of the data elements themselves, as well as security screening protocols, which now vary significantly.” Advance data programmes, such as the US government’s ACAS,


the European Union’s PRECISE and Canada’s PACT programs, will be on the agenda at TIACA’s annual general meeting (AGM) and executive summit being held at the Ritz-Carlton hotel in Istanbul, Turkey from 24 to 25 April. A panel of experts will debate the


issues at a workshop session, looking at the impact of new reg- ulations on shippers, forwarders, postal operators, and carriers. Representatives from Delta Air Lines, KLM Cargo, France’s


Le Group La Poste, American Airlines, the International Air Transport Association (IATA), UPS, the World Customs Orga- nization (WCO), DHL, and the US Transportation Security Administration will join the discussion, among others.


Over 20 industry speakers will join sessions over the two day


AGM event covering topics from customs and e-commerce to the cargo brain drain and e-freight. TIACA is working with customs and security regulators


towards ensuring data elements for cargo and mail, analysis and messaging procedures, and screening and response protocols are all standard, and screening regulations are not premature. TIACA is also encouraging the establishment of these standards through


organisations such as the International Civil Aviation Organi- sation, WCO and UPU. As part of an ongoing discussion, TIACA will be supporting


further talks on the topic at the 16 to 17 April, ICAO-WCO Joint Conference On Enhancing Air Cargo Security And Facilitation, being held in Manama, Bahrain.


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