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March, 2009 Volume 12, Number 2

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March, 2009 Volume 12, Number 2 INTERNATIONAL EDITION MARCH 2009 ARGO R C I S A D R A W A CE EXCELLEN Year of the Ox Human Resources Express Guide Select your service level. Tender your shipment. Fasten your seatbelt and prepare for a great experience. You’ll notice the difference long before your shipment leaves the ground. We’ve developed proactive. communication tools. Provided increased visibility for tracking and rates. Enhanced our products. Improved the overall experience. Why? Simple really. We may have 3400 fl ights every day around the. globe. But only one true destination. Your satisfaction.. AACargo.com viewpoint henever the logistics industry goes consistency and you will be building a barrier to into a period of reduced demand we entry for competitors. see an emphasis on very short-term Product Development: Survey your costs. Sure, airlines, forwarders and customers to find out their needs. Then 3PLs must watch costs but what is hap- identify pre-and post-transit services now Wpening now is what happened in 2000: panic being outsourced that you may be in a posi- and much short-term thinking. tion to offer with existing core transport. Investments and innovation are put aside as Maybe value-added or value-reduced ver- companies frantically reduce costs. So when we sions of your core services can drive revenue have the invariable upturn - and trust me, there growth and diversify your value proposition. will be an upturn - we find most suppliers of Technology: Shippers cannot buy expen- third party logistics offering the same services sive logistics software packages. Providing with little change from the last business cycle. web-based applications that improve customer At BAX Global in 2000 we faced quarterly service, reporting, compliance, performance losses in the millions of dollars as demand for monitoring, decision support and documenta- core integrated heavy air cargo services fell. tion reconciliation are an opportunity for addi- But we did not just downsize, we developed tional revenue or marketplace differentiation. value added services at the origin and destina- Sales Training: When was the last time Jerry Levy has a 20-year tions of the supply chain. High security servic- your sales people taught customers something? career in the logistics es were added along with a low-cost surface Are your teams simply viewed as suppliers or industry including senior distribution product. We also invested in a new are they consultants? Are they the people your management positions at extranet to give our clients detailed shipment vis- clients call when they have a logistics problem? BAX Global and Agility. ibility, reporting and documentation. Sales teams that understand the unique needs This enabled BAX to further penetrate the of the marketing, purchasing, operations and customer’s supply chain and build market share. financial functions of their customers close new As demand returned in 2004, it became the num- business before an RFP is issued. ber one provider of domestic heavy air cargo and Compliance: Shippers are concerned achieved record profits. about the proliferation of global compliance My point in telling this story is that providers issues. The new 10+2 rules, changes in SED are facing a similar situation now. So they have requirements and security pre-screening a choice of cutting short-term costs to survive processes offer an opportunity to provide ad- with the same business model or use this time ditional services and consulting. to innovate and then reap the rewards of provid- Assets: Importers find themselves with un- ing a differentiated, higher value service when wanted space as product demand is reduced. If demand returns. forwarders, airlines and 3PLs have extra space So logistics suppliers have an opportunity in terminals and freight stations they could to enhance their offerings and build new value enable end-user customers to eliminate their for their companies in the following areas: fixed assets by incorporating a logistics opera- Customer Experience: Ask the question, tion into their underutilized facilities. “How can we become easier to do business Yes, short- term cost reduction is appro- with?” When a 3PL gets the shipment config- priate but if that is all a supplier can do, it is ured, cleared, documented and billed correctly business as usual which means they will be in every time, they become a critical part of the the exact same boat (or plane, or warehouse) customer’s business and not just a supplier. after the next upturn becomes a slow-down - Shippers may be willing to pay a bit more for and yes, that will happen again too. ACW ACW MARCH 2009 1 March, 2009 Volume 12, Number 2 International Edition contents Air Cargo Excellence 2008/09 19Delta makes a comeback Year of the Ox 26 So where’s the glossy coat? Express Delivery Guide 19 31One-stop, door-to-door Human Resources 42Legal lip service - or treasured asset? 31 42 26 2 MARCH 2009 ACW International Edition EDITOR Simon Keeble [email protected] CONTRIBUTING EDITORS Roger Turney, Ian Putzger CONTRIBUTORS Douglas Nelms, Trish Williams, Peter Conway COLUMNISTS Paul Forster, Brandon Fried ART & PRODUCTION DIRECTOR 4 Jay Sevidal [email protected] EDITORIAL OFFICES WORLD NEWS 1270 National Press Bldg., Washington, DC 20045 (202) 355-1153/1172 • Fax: (202) 355-1171 04 Americas PUBLISHER • TSA Security For Five Cents? Steve Prince • IPC Signs With UN Compact [email protected] • World Gains From Distressed Investors ASSISTANT TO PUBLISHER • TNT Acquires Chile LIT Susan Addy • In the News… [email protected] • (770) 642-9170 DISPLAY ADVERTISING TRAFFIC COORDINATOR Linda Noga 08 Europe [email protected] • Staying On Top Of The Cashflow ADVERTISING/BUSINESS OFFICE • K&N Gets Hapag Lloyd 1080 Holcomb Bridge Rd., Roswell Summit Building 200, Suite 255, Roswell, GA 30076 • And Air France Gets A New Freighter (770) 642-9170 • Fax: (770) 642-9982 • In the News… WORLDWIDE SALES U.S. Sales Hong Kong, Malaysia, Associate Publisher Singapore 12 Middle East Pam Latty Joseph Yap (678) 775-3565 +65-6-337-6996 • Gulf Adds Capacity As Others Cut [email protected] [email protected] • Agility Writes Off 2009? Europe, United Kingdom, Japan Middle East Masami Shimazaki David Collison [email protected] +44 192-381-7731 +81-42-372-2769 16 Asia [email protected] Thailand • More To Come From JAL/NCA China Chower Narula • Biofuel Cheaper Than Kerosene? Beijing Office| [email protected] Nancy Sun (Sun Junqin) +66-2-641-26938 [email protected] Taiwan ++86 10 5879 5885 Ye Chang Shanghai Office [email protected] Isabella Hou (Hou Ying) +886 2-2378-2471 [email protected] Australia, New Zealand DEPARTMENTS ++86 (21) 5116 8877 Fergus Maclagan Viewpoint Guangzhou/South China [email protected] 01 Sherry Yuan +61-2-9460-4560 People/Events [email protected] Korea 46 ++86 10-5879-5885, ext. 601 Mr. Jung-won Suh +82-2-3275-5969 48 Bottom Line [email protected] CUSTOMER SERVICE OR TO SUBSCRIBE: (888) 215-6084 Air Cargo World (ISSN 1933-1614) is published monthly by UBM Aviation. Editorial and production offices are at 1270 National Press Building, Washington, DC, 20045. Telephone: (202) 355-1172. Air Cargo World is a registered trademark of UBM Aviation©2009. Periodicals postage paid at Newark, NJ and at additional mailing offices. Subscription rates: 1 year, $58; 2 year $92; outside USA surface mail/1 year $78; 2 year $132; outside US air mail/1 year $118; 2 year $212. Single copies $10. Express Delivery Guide, Carrier Guide, Freight Forwarder Directory and Airport Direc tory single copies $14.95 domestic; $21.95 overseas. Microfilm copies are available from University Microfilms, 300 North Zeeb Road, Ann Arbor, MI 48106. Opinions expressed by authors and contributors are not necessarily those of the editors or publisher. Articles may not be reproduced in whole or part without the express written permission of the publisher. Air Cargo World is not responsible for unsolicited manuscripts, photographs or artwork. Please enclose a self-addressed envelope to guarantee that materials will be returned. Authorization to photocopy items for internal or personal use is granted by Air Cargo World, provided the base fee of $3 per page is paid directly to Copyright Clearance POSTMASTER: Send address change to: Center, 222 Rosewood Drive, Danvers, MA 01923, and provided the number of copies is less than 100. For authorization, contact CCC Air Cargo World at (508) 750-8400. The Transactional Reporting Service fee code is: 0745-5100/96/$3.00. For those seeking 100 or more copies, please 3025 Highland Pky Ste 200 contact the magazine directly. Downers Grove, IL 60515 POSTMASTER and subscriber services: Call or write to Air Cargo World, Subscription Services Department, PO Box 5051, Brent- For more information visit our website at wood TN 37024; telephone 888-215-6084. www.aircargoworld.com ACW MARCH 2009 3 worldAMERICAS EUROPEnews ASIA MIDDLE EAST AFRICA IPC Signs UN Just Five Cents A Pound Global Compact For Sustainability For TSA Screening? he International Post Corporation (IPC) has signed up to the United Na- Ttions Global Compact as part of its ongoing sustainability program. The UN led initiative provides businesses with a policy framework for their sustainability strategies, based on ten universally recognized prin- ciples covering human rights, labor, environ- ment and anti-corruption. IPC President and CEO Herbert-Michael Zapf said, “Now that we have the environ- mental measurement and monitoring system in place, it is important that we not only build on this but that we take an active part in the wider debate so that we can share our expe- riences with others, learn from them and be part of the overall solution.” U.S. postmaster general and CEO John Potter added that postal services are in an unique position to “take a tremendous lead- ership role in addressing concerns about the environment.
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