Here is another idea to help promote our industry.
It does not involve universities or politicians or lengthy presentations and debate. All it takes is initiative, a little bit of do-it-yourself construction and the cooperation of a few organisations which have an interest in air cargo anyway.

In Kuala Lumpur, a life-size segment of an airplane was refitted as a walk-through promotion site with exhibits and photographs lining the curved walls, telling some of the more spectacular yet seldom heard stories which turn air cargo into the exciting world it really is.

In Zurich, four leading companies from the recently formed IGAC (Interest Group Air Cargo) joined forces to create an outdoor installation at the airport, placed in the path of literally thousands of passers-by every day. This installation features one of the brand new lightweight containers of Swiss WorldCargo and an information wall that tells 5 air cargo stories to which everybody can relate, ranging from bringing an athlete’s bike to the London Olympics racetrack, to ferrying live organs for victims of a crash, to shipping the iPad 3 to avid fans worldwide just in time.

You see, facts and figures are one thing and they certainly work well with decision makers everywhere. But turning cargo into a tangible experience for all the people who depend on us to make their lives as rich, fast and colourful as they are – that´s certainly worth the effort as well.
Because in the end (as a recent referendum in Zurich has proved yet again) air cargo can only thrive when the public has at least a rough idea what it adds to their lives and their welfare. And nobody but ourselves will stand up and tell our story convincingly.

So, what´s next?
A laser show in Shanghai Pudong’s Terminal 1?
An air cargo ballet in Dallas/Forth Worth?
A ULD roller coaster outside Moscow’s Domodedovo?

Keep me posted, will you?

Thank you for tuning in,

Oliver

Less than two years ago my company, together with other stakeholders in the logistics industry of Switzerland, participated in a scientific study conducted by the chair of logistics management at the University of St. Gallen here in Switzerland. The aim was to analyse both the quantitative and qualitative impact of air cargo on the Swiss economy.
Even we were pleased and impressed by the resulting facts and figures, not least because they were independently compiled by one of the most renowned universities in the field of economics in Europe.

But that was just the beginning. In February 2011, we had a meeting in the Swiss capital Bern with a group of parliamentarians interested in economic and infrastructural issues related to aviation. We presented the findings of the study as best as we could, and after two hours of intense and very constructive discussions, the meeting ended with the politicians asking a question which is almost unheard of, in this country or anywhere else:
“So, what can we do to support you, and to strengthen the logistics industry in Switzerland? Please be specific.”

I can see that unbelieving look in your eyes – don´t worry, Switzerland has not in the meantime become the Shangri-La of global logistics. But, and this is a monumental “but”:
Things are definitely moving in the right direction here. And what did it take?
The collection of relevant data. And a presentation of the right arguments to lawmakers.
It was as simple as that.

Two weeks ago I told that story at the Intermodal South America conference in Brazil, and I was rewarded with a half funny, half desperate comment from someone in the audience: “In Switzerland this might take two hours, but in Brazil it would take two years!”

Really? Switzerland is what scientists call a mature economy, well organized and very confident that it already does things in the proper way. No need for fundamental change here, thank you very much. And now compare that to Brazil. A nation emerging as a global powerhouse with a degree of dynamism which we in Europe have lost a long time ago. An economy in the midst of rapid transformation with huge infrastructural projects planned or underway. With everything in motion and few things settled once and for all, there surely must be ways to excite and influence the lawmakers and politicians?

Because it is more than urgent to do so. Urgent, for example, to shape the country´s aviation infrastructure not only according to the needs of passengers, but also to the needs of air cargo.

In Bern, the down-to-earth approach with the simple facts worked quite well. It will in Brasilia too, my unknown friend.

Thank you for tuning in,

Oliver

Ok, I promise to stay calm and reasonable throughout this blog.
As long as I can, that is.

Consider this:
For quite a while now, we have made considerable efforts to attract to our industry bright and ambitious young members of what the Chinese aptly call “the other half of the sky”.
I am speaking of women, of course.
And indeed, we have had some success, and the number of keen and committed female faces in the audience and panels of our conferences rises continuously.

So all is well and good – – or so I thought until I started to talk to some of these charming and clever new members of our community, and to listen to their accounts of what it is like to be a woman in air cargo.

It is actually a vibrant and fascinating industry, in this they all agree.
But sadly there is more to their story: one of them told me about being denied access to the same remuneration and contract as her male counterparts; another about being denied the working hours she and others need to take care of their children; and worst of all (I am truly ashamed to even write this down), another told me how she was regarded as a stand-in for a male colleague when she participated in an industry meeting. Their various accounts, though diverse, showed the inconvenient truth that opening up a male bastion means more, much more than recruiting bright women like them; and we have much to learn.

I had better stop here before I say something involving words with less than five letters (which of course would not be appreciated by our ladies).

Let me just say this: if this is the way we run our industry, we will surely get what we deserve, which is obviously not the energy, creativity and intelligence of half of the world’s population.

Please, do not tell me, we can´t do better than that!

Thank you for tuning in,

Oliver

Since quite a few of you asked, here is the account information on Murray Kidds Ugandian Project “Bearcare” that I mentioned in my last blog “One good man…”.

All funds will be used to support and educate orphans in a region terribly affected by civil war and AIDS.

Account:  Murray Kidd – Bearcare Account
Bank  Westpac Banking Corp, 109 St Georges Tce Perth WA 6000
BSB  036000
A/c  132868
SWIFT  WPACAU2S

Thank you for tuning in,

Oliver

Jaded as we are by too many conferences and often-less-than-inspiring speeches, we were all returning to the main auditorium at last week’s World Cargo Symposium expecting “the usual”. Yet Des Vertannes, the cargo boss of IATA, announced a story about someone whose identity he was not ready to reveal just yet. And the mystery grew as he poured surprise into the room with each word he uttered. The audience, thrilled and growing quieter by the minute, then heard a story that went something like this:

“… deciding not to cave in to despair this man took all his savings, sold his possessions and went to Africa to create comfort and hope for others. In Uganda, one of the most agonized countries of the continent, devastated by civil war and AIDS, he founded an orphanage and dedicated the next four years to giving abandoned children shelter, food, education and, most of all, love and hope. This project is called Bearcare”.

And then came the revelation, and the connection to our industry: “It’s founder’s name is Murray Kidd.”

Yes, Murray: at Air Cargo India this February this well-liked and trusted colleague rejoined our industry after a 4-year leave of absence: he came back as quietly and modestly as he had left after he tragically lost his partner through illness. Why he had left our ranks and what he did in the meantime nobody really knew, not that we really asked, anyway: until Des shared his recent discovery.

So there he was last week, invited by Des and propelled by a roar of applause, climbing the few steps onto the stage. Having received no warning whatsoever, he melted before our eyes, deeply moved by the reception he got. But Des was far from finished with him.
In front of every one of the 1000 seats in the convention hall, there stood a small cardboard  container placed by one of the sponsors, each stuffed with a one dollar bill.

“This money”, Des said to Murray, “is on its way to your orphans”.

Murray who had only come back because he was running out of money, was moved. 1000 dollars means a lot of food and education in Africa. But that still wasn´t it.

That evening, Des’ team urged everybody in the banqueting hall to put more, many more dollars into the collection through a ticket lottery, all in support of the Ugandan orphans. As the evening drew to a close, Murray took with him more than 13.000 dollars to support his children. And shared his emotion and tears with us: and we with him. 

Try telling me that this is not an industry of people. And that one man (or woman) does not make a difference.

Thank you, Murray,

Oliver

It is rather sad:
Whenever we industry pals sit together on panels, listen to speeches or simply chat with one another, there´s always this knowing smile when one of us mentions the importance of “being innovative” and “embracing technology”.
Because we aren´t and we don´t.
I know it. And you know it.

When something so fundamental as technology and innovation has become a source of sarcasm rather than a major driver in our industry, it surely is time for some radical approaches, don´t you think?
Yes.
Punks.

You see, the source of all our troubles with e-freight and electronic-based, IT-driven progress in general is simply that all major suppliers in this field do not rock our industry – and it is not even their fault, really.
Without naming them and while also noting that they are competent and well-regarded companies, we can all see that they basically all come from the same stable:
the airline industry.
They are divisions of airlines or were spun off by airlines, they think like airlines and they are used to reacting to airline requirements.
I am not blaming them at all. We are grateful for the services they provide.

But what is clearly missing here are fresh perspectives. A rupture with the past. A cold blast of competition or radical restructuring which forces everyone to sit up and, yes, innovate or die.

Sooner or later they will find us: highly intelligent, ambitious, fearless, disrespectful geeks from Silicon Valley or wherever who will spot their opportunity. Cyber-punks with a mission who don´t give a you-know-what for the status quo and instead show us how to go about our business IT-wise in the 21st century.

The good news is: they are out there somewhere.
The bad news: they do not know that we are out there as well.
And in that we do have a problem.
So let´s work harder to further enhance our visibility as an industry and start attracting those talents who are not from our stable. 

The history of innovation has shown time and time again that it is them, the renegades and wild cards, who pave the way for the next big thing.

A high school dropout with no degree and a crush on calligraphy (Steve Jobs), an examiner second-class at the patent office in Bern (Albert Einstein), a student in psychology fluent in ancient Greek who loves to recite Homer’s Iliad in business meetings (Mark Zuckerberg).

That kind of Punks.

Thank you for tuning in,

Oliver

When the air cargo world converges on Kuala Lumpur on March 12th or thereabouts, we have a choice to make.

Will it be yet another of those shared rituals where the most exciting topic is the shape and colour of e.g. this year’s Christmas tree? Or worse still, will it be another campfire, with somebody on stage playing a familiar tune while the audience claps and sings along, lulled by the all too familiar sounds and sights, as I suggested in an earlier blog entry?

Quite possibly so – but here´s an idea:

Why not turn the convention centre into our version of the Tahrir Square, the epicentre of the Arab Spring? We could start addressing the urgent issues and potential roadblocks for real that more than ever hinder our industry´s development.
Why not scream and shout passionately about e-freight?

Why not hold a nocturnal vigil to remind politicians of their duty to devise a global emissions scheme?

Why not go on hunger strike to force lawmakers and officials to get their act together and implement once and for all consistent security regulations for the entire planet?

It is true, this sort of convention would be much less orderly and predictable than the one in which we all expect to participate –  and yet: there is so much to gain.
Momentum and determination for the radical transformation our industry so obviously needs.
And if you fear that tackling all those big issues at once might be overambitious, here is a little warm-up “revolution”, to get us going and changing things for the better: 

Get rid of the TACT books.
I remember the days when the latest issue was placed religiously into the hands of any new recruit to the industry (as I was in 1989) like a Koran or a Bible, to be studied in some detail before we could be let loose to talk to any customer or execute any transaction around the office. But surely times have moved on, we learn our trade in a myriad new ways. Yet those TACT books are still there, somewhere on the shelf.

What is a TACT book anyway?

Is it a compendium of rules and regulations relating to every active air cargo location around the world? Splendid: we need that. Give me a CD or internet site accessible to all those who need the information.

Is it a book of airfreight rates? Give me a break! We are not allowed to, and do not share our rates with anybody except our customers.

Is it a tool to enable the airline to pay the forwarder a commission? GIVE ME A BREAK! Forwarders ceased long ago to be an agent of the airline. They are highly skilled professionals managing the supply chain of highly complex businesses. They charge their customers, the shippers whatever they deem appropriate for the high value that they deliver, and they don’t need a TACT book to help them.

Somebody will object: that is all well and good in many markets, but certain incidental users of airfreight still pay “TACT” rates, expecting the forwarder to be paid through commissions by the airline. I have my doubts, but I repeat it is none of the airline’s business what the shipper pays to the forwarder. What will we put on the airwaybill if we have no TACT rates? Well, we are trying desperately to get rid of the airwaybill, so my answer is we put nothing on the airwaybill, or (if we must) “as agreed”.

Do airlines need TACT rates for interline settlement of shipments going beyond a carrier’s network? I hope not, there are smarter ways to charge each other for services rendered.
Of course I am aware that the "book" is already produced as a CD. But, and here I rejoin the big discussion about e-freight: there is absolutely no sense in digitalising outdated books and documents.

And what will be gone if we do get rid of the TACT book? Well, I haven’t dared to ask what kind of fuddy-duddy bureaucracy exists to manage it today throughout the industry, and would be swept away, but it sure sounds like a welcome goal and a breath of fresh Tahrir Square air for our industry – and it might just inspire the bigger changes we all want to see.
So, join me and occupy Kuala Lumpur!
 
Thank you for tuning in,

Oliver

An economy, powered by 1.3 billion industrious people, guided and motivated by an ambitious government with an excellent record of executing long term strategies, growing by a more or less double digit rate year after year and determined to master all technologies and industries that for the last 250 years were the backbone of Western world domination –
Now, what could be scarier than that?

I tell you what.

Sitting in a plane that brings me yet again to Beijing, this time for the (re)opening ceremony of our new cargo station I cannot help but think:
I am not scared of China.
I do not worry about this extraordinary country becoming one of the dominant powers on our planet.
I am not worried about a possible Chinese mega carrier or more fierce competition in our markets.
I am not even worried about acquisitions and take-overs that will sooner or later reshape our industry’s topography.
All this is, well, just how it is and always will be. Power shifts, dominance falters, economies rise and fall. Those who adapt will cope with the inevitable changes. It is as simple as that.

What scares me more than anything China does is how scared many people in our industry are about it.
Warnings and lamentations are no substitute for finding new ways to cope with the changing situation. Rather than crying that China is a threat to the status quo (which it most certainly is), we are far better off seizing the opportunities offered to every one of us by the growing middle classes of the Middle Kingdom, with their exploding demand of goods and services the Western world is still very adept at delivering.

And if you are not convinced yet, try this:
Imagine the world economy without the Chinese powerhouse to keep it from deep-diving into a recession.
Now, that would be really scary, if you ask me.

Thank you for tuning in,

Oliver

The industry outcry provoked by this rather bold move is still ringing in our collective ears. But unlike the years before, the industry actually rallies behind a coordinated lobbying effort including letters to the responsible commissioner from, amongst others, both IATA and TIACA.

The EU listens but doesn´t budge.

Enter: the US.

Prompted by a parallel national lobbying effort, Hillary Clinton tries to talk the EU out of it.

Still: no budging. “Ok then,” US lawmakers tell their airlines: “…do not even think of complying, or else…”

And with the next response from Brussels (“Go ahead, try not complying if you have got money to burn!”), the entire drama becomes a powerplay with hurt egos, faces to be saved and endless moaning going back and forth.

So what should we (I am wearing my TIACA / GACAG hat today, as you may notice), the industry, do next after our failed attempts to derail the EU initiative?  

Well, however tempting it may be to join the chorus of moans and escalation of threats, we would rather do something more constructive: move on from the current crisis and focus on a future solution, which is, and has always been, a global scheme sponsored by ICAO, agreed by all member states and orchestrated with the industry. That is why we will be talking to the EU; to ICAO; to legislators worldwide. And maybe, just maybe, the industry can be the catalyst to bring fractious government bodies into harmony.  

What does it all come down to?

Everybody knows, there must, and there will be a better solution than the current EU ETS scheme. Everybody knows, we could do worse than restarting the dialogue right away.

So if you´ll all please sit down again, thank you very much,

Oliver

When in 1968 the British science fiction author John Brunner wrote his remarkable novel “Stand on Zanzibar”, he envisioned that our planet in 2010, by then hosting more than 7 billion inhabitants would be hugely overpopulated and ravaged by the resulting conflicts.

To illustrate that stunning number, he claimed that the 7 billion people of his novel, standing upright, shoulder to shoulder, would barely fit onto the island of Zanzibar with an area of 2643 square kilometres, roughly thrice the size of New York City.
As sometimes happens with science fiction, Brunner was almost right on target, and humanity actually passed the 7 billion mark less than a year later than he predicted, on October 31st 2011.

All this crossed my mind as I was visiting Zanzibar, that beautiful isle off the coast of Tanzania last month. And I thought: Thank goodness we are not squeezed onto this charming island, because apart from the boredom of spending your life standing still (even on Zanzibar), all of us in the logistics industry would be without a job (with everybody being basically in the same place).

But in point of fact we are scattered over some 148 million square kilometres of earth´s landmass, granting each of us considerably more space than would be available on Zanzibar – and furnishing us with all sorts of fascinating jobs in the logistics industry as a result.

Yet I cannot help but ask myself why this most basic fact of life: “We are not living together on Zanzibar” – seems so hard to explain to Frankfurt judges or the people of Canton Zurich who only recently were called upon to decide the fate of Zurich Airport.
How come, a simple truth like “Developing infrastructure and fostering the logistics industry is the only way to further spread prosperity and opportunity to the ever greater number of our planet’s inhabitants” is so often challenged or even denied?

Don´t ask me.

But, truth be told, I spent only a moment or two brooding over these nagging questions.
You see, Zanzibar is just too delightful and enchanted a place for worries of any kind.

Thank you for tuning in,

Oliver