By Karen E. Thuermer, AJOT

TIACA's biannual Air Cargo Forum and Exposition was held Sept. 12-14 at the Roundup Centre in Stampede Park, Calgary, Canada. The event cumulated with a rodeo and performance by Cirque du Soleil. Attendees were also entertained with an elaborate performance of popular music and Malaysian dance, which set the mood for the AFC '08 to be held in Kuala Lumpur.

Daytime hours focused on the issues foremost on the minds of the air cargo industry. Sessions were held that reviewed market access, the impact of air cargo on the global economy, major shippers' views of the industry, and the pros and cons of paperless cargo processing.

Like most carriers present, Ulrich Ogiermann, president and CEO, Cargolux Airlines International, emphasized the need for market access via open skies agreements. Hailing from Luxembourg, a nation with liberal policies towards air transportation and trade, he pointed out that while 76 bilateral air service agreements are in place, only 14 are open skies agreements.

'The industry is hampered by restrictions, policies, regulations and practices,' he said. 'We need to operate in an air network environment that allows us to be part of the global supply chain.' He called for a system that offers flexible routes.

Alexey Isaikin, president and CEO of Volga-Dnepr Group, concurred. 'Open skies would enhance responsive timing to our customer,' he said. He added that he felt a barrier facing the air cargo industry is communication between operator and customer. This is particularly an issue with demands for project cargo shipments escalating.

'In the last five years the growth of the market has increased 30%,' he said.

Another issue that was addressed was the need from more competition in ground handling.

'Some airports dominate handling companies, which is not good for quality of service and competition,' said Ogiermann.

During the session entitled 'The Impact of Air Cargo on the Global Economy,' Erik Britton, director Economics, Oxford Economic Forecasting, also made a case for open skies with a wider viewpoint that trade is a key facilitator of economic growth. He offered statistics revealing how air transportation contributed $880 billion to global GDP in 2004.

'Air cargo is a key part of that contribution,' he said. 'Some 1.3 million jobs are supported by the global air cargo industry.'

Most important, 40% of the total value of manufacturing exports goes by air.

'This is phenomenal, particularly because it is one to two percent of volume,' he said.

A group of prominent shippers gave their perspective of the industry in a session entitled, 'The View from the Top.'

Richard W. Macomber, programs manager, Global Logistics Procurement, Americas, Integrated Supply Chain of IBM, emphasized that IBM ships the equivalent of 22+ 747/440F (maximum loads) every day of the year.

'This does not include domestic intra-country air freight,' he said.

The company is moving up the supply chain in air freight, and does not use much ocean. Air freight is particularly important to IBM as it transforms itself into a global enterprise.

'We are relocating US manufacturing facilities into China, India, Russia, and Brazil,' he said. Nine of the top 50 airports are in these countries. Knowing where major air carriers are offering service is also important.

Greg Andrews, director, Global Logistics-Transportation, Adtran, emphasized that air cargo is important because his company needs the ability 'to turn on a dime.' Among his list of criteria: decrease inventory, have shorter lead times, and decrease inventory carrying costs from seven to 2.3%.

'It is all about reducing inventories and being fast to market,' he said.

His message to air carriers: they are too far removed from shippers. 'Let's partner,' he said.

David Pope, Logistics Category Manager, International Logistics, Rohm and Haas, pointed out that documentation and labeling is important. Damage issues are imperative as well as shipment visibility. <