Workshop 1: The Ground Game What does the future hold
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- SUBECT MATTER COMMENTS AND GROUP DISCUSSION
| TIACA Executive Summit 2015
Workshop 1: The Ground Game - What does the future hold (and how can we improve)? Wednesday, May 20, 2015 11:00 am – 12:30 pm Executives from a wide range of global and regional ground handling and cartage companies met to discuss operational and regulatory issues. Faced with an array of new regulations, and training requirements often customized to each carrier or regulated agent, how can they best serve the market and keep cargo flowing efficiently? Subject Matter Experts:
SUBECT MATTER COMMENTS AND GROUP DISCUSSION The Subject Matter Experts and panel participants engaged in wide ranging discussions about improved wait times and infrastructure, standardization of regulatory processes, and the role of ground handling and cartage companies in the growing business of Ecommerce. Overview “The difference isn’t made in the air; the difference is made on the ground”- Moderator Sebastiaan Scholte, CEO, Jan de Rijk Logistics. Cooperation and visibility is key among stakeholders in an industry where nobody, with few exceptions, is contractually tied to one another. Although there is lots of interaction, cargo changes hands so many times there is always a possibility that things will go wrong. Improved technology is available but the will for certain players to adopt new platforms isn’t always there. Sebastiaan Scholte, CEO, Jan de Rijk Logistics asked the group, “What do you think is the most pressing issue right now?” Bruce Roberts, President, Sterling Transportation stated the most pressing issue right now for the line haul segment is driver regulation for over the road shipments, which is important for expedited transportation needed to consolidate cargo from forwarders and their agents for expedited shipment. Sebastiaan Scholte, CEO, Jan de Rijk Logistics - What about waiting times, what are these issues? Karen Avestruz, Director, Sales and Security, Quantum Aviation Services said it depends on the facilities (infrastructure) as well as processes in the warehouse. Patrick Maloney, President, Air General, Inc. considered the past winter in the Northeast and Midwest USA. Bad weather and an influx of air cargo from the Port of Los Angeles created severe congestion. A forum was created in Chicago to address the local congestion issues, discover new ways to communicate and reach out to community associations and their members regarding changes and congestion. In order to reduce wait times, it would take cooperation from all players to determine how the industry wants to communicate hiccups along the supply chain. The Port of Virginia (as an example) has a “live feed”, updating which gates to attend, what are the open slots, etc. The use of social media may also be a solution to/for insufficient communication between forwarders, brokers, dispatchers, etc. Gary Lupinacci noted that Consolidated Aviation Services(CAS) put together a system that measures truck waiting times with concise measurements to help them understand their waiting time. Having a Service Level Agreement to manage performance means you’ve got true measurement opportunities. Didier Challine, Administration Manager European Division, WFS Holding explained that his customers are airlines that have Service Level Agreements (SLA) defining the time scale to deliver cargo, input the information, etc. The airlines’ indirect customer, the freight forwarder, is subject to performance reviews to identify any obstacles. There are tools to calculate when the forwarder arrives, when he is released or delivers the cargo. WFS are also working with trucking companies who are ordered by the airlines for pre- or post-forwarding as that activity faces some congestion issues. Depending on the destination and deadline, WFS works with the companies to manage the loading based on the demands of the deliveries. Sebastiaan Scholte, CEO, Jan de Rijk Logistics - What about the role of Customs in the supply chain? Patrick Maloney, President, Air General, Inc. gave an example. In the United States, US Customs & Border Protection (CBP) can hold on to freight for hours at some gateways, while other gateways are clearing and releasing quickly. Local Port rules and regulations also present a challenge for clearing freight in a timely fashion. In instances where freight is cleared before it lands, extra cost is associated for companies using an approved software package or automated system. Sebastiaan Scholte, CEO, Jan de Rijk Logistics - Is it infrastructure or lack of visibility? What’s been gained with Automated Commerce Environment (ACE) is that cargo is being pre-cleared before arrival but the infrastructure of automation & electronics means that everybody is on different platforms, said Mike White Director Cargo Facilitation & Standards, IATA, Americas Region, Cargo Department. Some companies are using outdated systems such as CARGOIMP v. 6 when 17 is the newest, and others would prefer not to spend money on IT. IATA is working with CBP on moving to XML, but how does it fit with ocean, air, rail, motor carriers, and container freight stations? Standardization of all data messaging is what moves cargo and would require facilitation from WCO, ICAO and IATA to realize a successful system. At any one time, there could be 7-10 carriers in a facility who have different SLA’s and pricing models working together. It would be challenging to get all carriers on board to adopt a new platform. ROI for the project goes down if all the airlines aren’t on board with the initiative. Carriers use out of date systems that are antiquated and it’s tough to make it backwards compatible. However, ground handlers are starting to invest in the new IT initiatives. Airlines are starting to understand that and more are getting involved. Sebastiaan Scholte, CEO, Jan de Rijk Logistics - We’ve become a commoditized industry to each other. How do we discuss quality? Franz van Hessen from Cologne Airport (CGN) comments - The handling agent is at the bottom of the food chain. It’s a three-dimensional line. No teeth - and everyone is out to eat them. It’s a highly competitive market run by overcapacity. Many resources are fixed and get squeezed where they have to deliver a performance but don’t have the tools to realize that performance. People need to optimize their performance to serve customers better. For Example, for every departing flight, start buildup 8 hours before departure, gets it done 2 hours before departure and allow flexibility. The last 10 tons can get delivered up to 4 hours before departure. 2 hours before departure, the whole thing shows up, loose loaded. Export takes a priority to build because the flight isn’t leaving empty, so the import cargo waits. What is the missing link because it won’t get solved with the customer? As for airports, they have capacity during the night. He has one tool in his pocket called slot coordination. If one customer raises a finger and claims congestion, they can go into a slot coordination system to manage peak capacity. Suddenly, he has leverage to talk to his customers because nobody wants that solution. It’s a stick that helps to provide motivation. If there is a group that creates a basic, level playing field, agents have a tool to work on something. We’re just missing the tool. The assumption from CGN is that you own all the properties and handling on the airport and can manage them all. This model does not work in the USA where private sector entities compete on the airport for the business of airlines. Karen Avestruz explained that Quantem Aviation has contracts with carriers, but to get the contract, you have to analyze the cost closely, and it becomes a game of balance. What’s the risk for the work they’re going to do because it’s tough to win a contract at a reasonable rate and still provide resources to manage the problems that arise? Manual training of staff is another obstacle for ground handlers. We have movement and non-movement training from the aviation departments, carriers provide their own training materials, on top of the employee’s company training procedures on operations and equipment. Often, the required regulatory training must be provided multiple times, as the regulators won’t allow “one-time” sharing. As an industry, we must get to a point where these operations are standardized. To start, we could mimic a successful system already in place. At Delhi Airport (DEL), a successful truck management system has been put in place. DEL has worked with airlines and asked how the current system can be more efficient for them. The government offered 72 hour free period for their cooperation. They timed shipments on export and discovered it takes 21 hours for planning, which is inefficient in the system. They shared this data with the carriers. They ran projects “10 on 10” - working with 10 carriers to get the time down to 10 hours for planning. They looked at a process or technology solution that makes it possible for the customer. To help the customers who are competing with integrators, we have to be efficient on the ground. In India, we showed what the savings in people and cost were for eFreight. DEL was the first airport declared eFreight compliant. Many solutions are put in creating value for the customers. Smart airports should stop being landlords and be a part of the process and invest in the process, which can expect an ROI more forward in time than the average handling agent. Sebastiaan Scholte, CEO, Jan de Rijk Logistics - What role can a ground handler play in eCommerce? Stan Wraight from Strategic Aviation Solutions (International) Ltd. answers, “Only limited by your own imagination of what you can do.” Out of 650 Macy’s stores, 300 of them are being closed and moving towards increased eCommerce. Across Europe, stores are closing down. Where is that cargo going? It’s going out of the factory to the customer via B2C. The post office or an integrator is getting that business. The point for the airlines to succeed is on the ground. It’s the only thing that will get airlines back into the business that they’ll lose to eCommerce. Start thinking out of the box and upping the game of what is offered to the customer. Slot coordination for trucks into and out of an airport can easily be arranged. Development of the U.S. Customs AMS shipping requirements and others like it creates product differentiation from competitors. At Delhi Airport (DEL), they’ve set aside large areas for eCommerce distribution on the airport growing 28% YOY. Moving forward, they have plans to increase the facilities. They’re doing it as an airport authority, but can do the same for their GHA customers. WFS created a cargo community system; a database where everyone can exchange information (EDI) because different players are using different EDI languages. This lets people send information about AWB, security, invoice data. It can all be in this database and be used by whoever needs the information. Integrators control the whole chain. The exchange of information is a big issue for them and many airlines want them to do the job as quickly as possible. But the (airlines) need to provide information about the cargo. This is a part of the manipulation of the cargo. The key issue is how to communicate internally and get the information to the consumer. A large number of forwarders around the world are becoming extremely involved in eCommerce. They don’t maintain the technology, but there is a company called WIN (Worldwide Information Network) that allows for a common platform for everyone to communicate together using their own existing systems globally. It is amazing how many forwarders are doing bits and pieces of eCommerce. The trick (and challenge) is to bring it all together. Sebastiaan Scholte, CEO, Jan de Rijk Logistics – the future will also be C2C, peer-to-peer. The future will be for who holds the platforms bringing people together. Successful examples of C2C companies are Airbnb, Uber, etc. Doug Brittin, Secretary General, TIACA - Point to point in a single system (as a ground handler handling multiple clients), there are multiple issues. Is it training, regulatory issues, etc., which make for an open system? What are commitments for time definite services?
Sebastiaan Scholte, CEO, Jan de Rijk Logistics -There are a lot of positive developments at places like Schiphol, Cologne, Brussels and others. It’s a positive thing that people used to work separately, but it is changing. And the regulators are joining as well. French Customs is really involved with the new business of eCommerce and EDI data exchange. Didier Challine, Administration Manager European Division, WFS - All people are working together in Paris - including shipper, airlines, GHA, air forwarders, etc., the focus is for pharma now to make sure that it is happening uniformly. Oliver Evans, Swiss International Airlines - Modern sensor technology can answer all those questions about the freight, and people are working those points out right now. Mike White, Director Cargo Facilitation & Standards, IATA, Americas Region, Cargo Department - One of the things trying to be changed in ACE is to start with the people in ownership - let’s start with the buyer & seller on the invoice. Start sending the data for security for Customs clearance; at the shipper level. Integrators watch everything and are tied together - but we can’t be afraid of the data or be afraid of what the data shows & shares. Patrick Maloney, President, Air General, Inc. - Air General: Interesting thought: “What does the cargo say?” That’s where it gets us to where integrators are and what they’re offering. Wireless bar coder tracking a package based on a RFID sensor. Oliver Evans, Swiss International Airlines - The integrators themselves have the same challenge because they’re not handling smart cargo. And it’s a place where we have an opportunity to be as quick as them, if not faster. Directory: resource -> resmgr -> Docs resmgr -> Friday Jan 31 Atlantis A resmgr -> Lcmpt terms format: top terms second-level terms third-level terms Docs -> Welcome ifsa chicago Airport Shuttle Online Reservation System service provided by go airport Express resmgr -> NG911 cpe for angen rfp april 2014 resmgr -> Glossary of terms1 Analog Docs -> E3 Washington Showcase News Articles (Newest to Oldest) Docs -> The association of life insurance counsel Download 28.37 Kb. Share with your friends:
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