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What Is CRAF?

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What Is CRAF? The Need for Speed A LOOK AT INTERNATIONAL AIRFREIGHT FORWARDING BRANDON FRIED WWW.AIRFORWARDERS.ORG Integrators Forwarders Our Forwarder Members AfA Airline Members The Value of Air Cargo Only 2% of World Measured Tonnage 30% of the Value of Goods Transported Services Door to Door delivery Time Definite Export/Import Regulatory Compliance Insurance Letters of Credit Packing Kitting Complex Distributions Storage How We Make Money Buy at Airline Wholesale Rates Based on Volume Sell at a Discount Below Airline Rack rates Win-Win for the Airlines ◦ They fill available space ◦ They avoid cost of retail sales, marketing and customer service How We Move Airfreight Belly Space on Passenger Airlines Combination Carriers Cargo Only Aircraft Excess Capacity on the Integrators Is it Worth the Money? High Value Goods Perishables Quick Turn on Receivables Factory Line Down Aircraft on Ground New Product Launches Customer Demand Urgent Medical Needs Why a forwarder? Best rates possible Strong buying position Not married to one carrier Global networks Compliance experts Save money and hassle Other Logistics Players Customs Brokers Property brokers 3 PLs Connect with AfA! What is CRAF? Civil Reserve Air Fleet (CRAF) is a readiness program used to provide a significant portion of the nation’s air mobility resources when the Department of Defense (DOD) airlift exceeds the capability of military aircraft. ◦ Voluntary contractual program CRAF Purpose AMC to utilize aircraft and commercial crews if CRAF is activated. Events leading up to the creation of CRAF World War II ◦ Air Transport Association (ATA) and the United States Army Air Forces agreed to use civil aircraft to assist the military ◦ Lend-Lease Act was passed on March 11, 1941 ◦ The first cargo transport took place on June 21, 1941 ◦ The United States enters World War II on December 7, 1941 ◦ Civil airlines played a vital role during World War II ATC – Contract Airlines Operations During World War II Mode/Year 1942* 1943 1944 1945 Transport Miles (000,000) Total Worldwide*** 31.3 128.6 340.7 561.2 Contract Worldwide 28.2 83.9 104.2 105.6 % Contract 90% 65% 31% 19% Total International 21.6 104.0 295.1 505.0 Contract International 18.5 59.4 85.9 98.1 % Contract 86% 57% 29% 19% Total Domestic 9.7 24.6 45.6 56.2 Contract Domestic 9.7 24.5 18.3 7.4 % Contract 100% 99% 40% 13% Passenger Miles (000,000) Total Worldwide 157.7 883.5 2439.7 5048.4 Contract Worldwide 134.0 658.2 1082.6 1482.0 % Contract 85% 74% 44% 29% Total International 148.0 847.6 2185.9 4343.9 Contract International 124.3 622.2 1023.4 1261.0 % Contract 84% 73% 47% 29% Total Domestic 9.7 35.9 253.8 704.5 Contract Domestic 9.7 35.9 23% 31% % Contract 100% 100% 23% 31% How was CRAF started? December 15, 1951 – Departments of Defense and Commerce agree on CRAF establishment Started true development in 1952 Developed further at the end of the Korean War and hints of involvement in Vietnam Flexible Response offered CRAF resources across warfare spectrum Incremental Stages of CRAF Activation August 28, 1963 Stages Description Authority Peacetime Operations Perform airlift service in support Executive director, single to deployed forces. manager, operating agency for airlift services Airlift Emergency – Stage I When required to perform airlift Secretary of Defense services for DOD operations in support of, but not confirmed to, counterinsurgency activities and localized emergencies. Airlift Emergency – Stage II When required to perform airlift President of the United States services for DOD operations in support of, but not confined to, limited wars. Airlift Emergency – Stage III When required to perform airlift Declared national emergency – Activation of CRAF services for DOD operations Secretary of Defense, or in during major military accordance with the conditions engagements involving U.S. of the contracts. forces (lined or general war). Incremental CRAF Activation – 1970 Stages Description Authority Peacetime Operations Perform airlift service in support MAC Commander to deployed forces. Airlift Emergency – Stage I When required to perform airlift MAC Commander services for DOD operations in support of, but not confirmed to, counterinsurgency activities and localized emergencies. Airlift Emergency – Stage II When required to perform airlift Secretary of the Air Force services for DOD operations in support of, but not confined to, limited wars. Airlift Emergency – Stage III When required to perform airlift Declared national emergency – Activation of CRAF services for DOD operations Secretary of Defense, or in during major military accordance with the conditions engagements involving U.S. of the contracts. forces (lined or general war). Commercial Augmentation Military Cargo Hauled Year Percent 1962 40.5 1963 37.5 1964 22.2 1965 26.1 1966 30.2 1967 33.7 1968 24.0 1969 20.3 1970 15.8 1971 10.8 When was CRAF activated? August 18, 1990 ◦ Operation Desert Shield (ODS) ◦ Stage I of CRAF Activated January 17, 1971 ◦ Stage II of CRAF Activated Military Air Command Airlift Operations Cargo moved in September 1990 and January 1991 Building on Performance Air Mobility Command (AMC) aggressive in finding solutions ◦Future deployments ◦Declining military budgets ◦Performance ◦Program Participation What is a CRAF Partnership? Mandatory requirement enforced October 24, 2016 CRAF carriers may register designated agents Airline Benefits DOD Peacetime Business Increased Access to Foreign Markets Joint Use of Military Fields Reciprocal Auxiliary Aircraft Capability Reducing the Impact of CRAF Activation Designated Agent’s Responsibility Military Surface Deployment and Distribution Command Freight Traffic United Rules Publication Comply with federal statues, regulation and states laws General Freight Management (GFM) Automated Transportation Requests (ATR) Coordinate logistics US Bank Management Honor contract terms with CRAF partner Designated Agent Benefits Provide logistical support as a CRAF partner Ability to grow business within the program Credibility to grow in other sectors A sense of pride in doing their part to service the US military Military Benefits under CRAF Personalized customer service Communication Necessary skills sets to handle high visibility shipments Multiple resources Flexible options.
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