ICAT LogISTICS AT 20:
Transcription
ICAT LogISTICS AT 20:
Forward The Official Publication of the Airforwarders Association Summer 2013 ICAT Logistics at 20: Agency-Based Model Thrives on ‘You Grow, We Grow’ Teamwork Inside: AirCargo 2013 Wrap-Up At the Bar: Hot Topics M&A Transactions in the Logistics Sector Viewpoint: The Real Cost of Doing Nothing SAVE THE DATE: AirCargo 2014 National Press Building • 529 14th Street, NW, Suite 750 • Washington, DC 20045 Printed on 10% post-consumer recycled paper Wow your customers with your very own iPhone app. Prices start at just $79 per month. At CargoApps.com we take all the hassle out of building a mobile app. No website programming skills or IT background required. Just signup, design your app online, and let us deploy your app to the App Store for you. B O A R D O F D I R E C T O R S Keith Davis Sterling Transportation, Inc. Los Angeles, CA Michael Hess – President* Associated Global Systems Inc. Sharon Hill, PA Anthony V. (Tony) Deltuva, Jr. – Vice President* Service By Air, Inc. Woodbury, NY Robert Mauro Team Worldwide Winnsboro, TX Richard Fisher – President* Falcon Global Edge Inc. Boston, MA Jennifer Frigger-Latham – Member-at-large* EMO-Trans Freeport, NY Steven Goldberg – Secretary* SEKO Worldwide Itasca, IL Sasha Goodman Rock-It Cargo Los Angeles, CA Sandy Gregory AIT Worldwide Logistics, Inc. Chicago, IL Preston G. Murray National Air Cargo Holdings, Inc. Ypsilanti, MI Fred Parshley – Treasurer* UniGroup Worldwide Fort Wayne, IN Dan Stegemoller Radiant Global Logistics Bellevue, WA Chris Connell Commodity Forwarders Los Angeles, CA Michele Wilkinson Tailwind International, Inc. Addison, TX Michelle Halkerston Hassett Air Express, Inc. Elmhurst, IL * Executive Committee Members Visit us at CargoApps.com or email us at [email protected] to learn more. Content A f A 16 Member Profile: ICAT Logistics at 20 FORWARD 16 The Official Publication of the Airforwarders Association Richard Fisher: Chairperson Michael Hess: President Brandon Fried: Executive Director Tara McLaughlin: Editor ORWARD F is published four times a year by the Airforwarders Association Design: Kellen Creative 20 AirCargo 2013 24 M&A Transactions In The Logistics Sector Forcast To Increase In 2013: Are You Ready For It? 28 The Real Cost of Doing Nothing: Maintaining the status quo of your IT systems may be more expensive tham you think 20 Administrative Offices 750 National Press Building 529 14th Street, NW Washington, D.C. 20045 Tel (202) 591-2456 E-Mail: [email protected] Home Page: http://www.airforwarders.org The simple, inexpensive alternative to EDI. The Airforwarders Association is not liable for losses, claims, damages or expenses arising out of or attributed to the contents of FORWARD, insofar as the contents are based on information, representations, reports or data that have been publicly disseminated, furnished or otherwise communicated to FORWARD. Visit us at FindmyFreight.com or email us at [email protected] to learn more. airforwarders.org In Every Issue 24 28 4 6 8 10 12 30 Executive Director’s Report Chairperson’s Corner Secretary’s Report Government Affairs At the Bar Member News Summer 2013 Q Forward Magazine 3 Executive Director’s Report Brandon Fried AfA Executive Director I recently read an article about people who fly small propeller planes across oceans. In fact, there is an actual industry focused on ferrying such aircraft from one continent to another so that owners can position their planes in foreign destinations. A constant theme throughout the article was the amount of meticulous planning that needs to take place before such a trip begins. For example, it is entirely possible to fly a single engine Cessna aircraft from United States all the way across the Atlantic Ocean to Europe. Such trips are also possible from the US to Asia as well. Knowing how to deal with the fuel requirements, potential mechanical issues and personal challenges are keys to success. In other words, accomplishing these seemingly herculean flights is contingent upon an effective strategy and a plan to succeed. In June of this year, the Airforwarders Association Board of Directors will be meeting outside Washington for a strategic planning session. This gathering will include all of your elected Board members who will grapple with our organization’s most important decisions. At the conclusion of the exercise, we will have a clear strategy on how AfA will focus on the issues important to you and our membership. Our membership was surveyed multiple times so that those planners will have sufficient feedback to know exactly what your feelings and opinions are. We pride ourselves on frequent communication with our membership and use many surveys as a guidance tool to make sure your opinions are properly represented. In fact, our recent polls indicate that it is our communication that you value most. ACAS Regulation on the Way Unfortunately, it sometimes seems that we send too many surveys for which we apologize. We appreciate your understanding, as these tools are essential in helping us grasp your attitudes and concerns. We will endeavor to only send surveys that are appropriate and essential to the greater understanding well being considerate of your time. Meanwhile, I would like to express my gratitude for taking the surveys and providing the valuable insight needed to serve you better. The Air Cargo Advanced Screening voluntary pilot program continues to progress with several AfA members either submitting operational data or in discussions with Customs and Border Protection. This is the program that will target shipment data at the House Air Waybill level before departure on flights entering the United States. AirCargo 2013 is a Rousing Success And speaking of surveys, post conference polls indicate that this year’s AirCargo 2013 convention was one of our most successful ever. The event included almost 1000 attendees and over 100 exhibitors who descended upon Las Vegas for an extremely informative program and valuable networking opportunity. People really thought the addition of Airports Council InternationalNA as our newest partner created great synergy that will create even more success as we head to Orlando for AirCargo 2014 March 30-April. Before the conference, the AfA Platinum members met together after being greeted at the airport and whisked to the Red Rock Resort and a local restaurant for a sumptuous dinner. The program continues its success with now eleven participants enjoying its many benefits including free advertising, dinners and frequent Board interaction. TSA Releases KSMS Enhancements Our ongoing engagement with the Transportation Security Administration continues in several important areas. First, the agency recently introduced an update to the Known Shipper Management System. After surveying our membership, 70% thought that the recent enhancements were an improvement but no one thought that the system is where it needed to be. We will continue to work with TSA on this and other important issues including Consent to Screen requirements and the Indirect Air Carrier Management System. If you would like to provide any suggestions or comments, please do not hesitate to contact me at AfA headquarters. I am pleased to be part of the CBP’s Commercial Operations Advisory Committee ACAS Working Group and would especially like to thank my co chair Sandra Scott of AfA member Seko Logistics for her advice and participation. While this initiative pertains to shipments coming into our country, other nations will probably derive their programs from our findings. This means that you will need to file a similar data report exports for other countries sometime in the future. In the meanwhile here in the United States, we should expect the initial Notice of Proposed Rulemaking from CBP sometime this fall. Focusing on Air Cargo at the Department of Commerce You may recall that AfA was recently named to the US Department of Commerce Advisory Committee on Supply Chain Competitiveness. This work is important as we are joining leaders from all industries in determining obstacles that may be impeding the President’s National Export Initiative. Our Regulatory Compliance Committee led by AfA member Glenn Hall has been especially helpful in identifying areas in which regulations and other issues are adversely affecting air cargo. A transportation industry white paper is being drafted and will form the basis of a set of formal recommendations to the Secretary of Commerce in the fall. AIR CARGO SCREENING MADE EASIER Introducing New TSA-Qualified Dual-View Systems for Pallets, Skids and ULDs* Our upcoming strategic planning meeting is an exercise designed to assure that we have the appropriate resources and tactics for setting the stage in the near future. As with the ferry pilot flying a small plane across the vast ocean, understanding the risks and allocating our precious resources is an essential component in meeting the vast challenges ahead. L-3 Security & Detection Systems has introduced a new line of TSA-qualified large tunnel screening systems with multi-view capabilities, making your screening process faster, cheaper and more efficient, all while meeting recent regulatory requirements for dual-view screening. As a leading aviation security supplier for more than 30 years, we’re committed to providing the most affordable and reliable high-throughput and high-performance systems. If you would like to provide your input as to the strategic direction of our association, your Board members and I are always available and hope that you will drop us a line today. For more information, visit us online at www.LargeTunnelScreening.com or contact us at +1-781-939-3800 or [email protected]. Security & Detection Systems L-3com.com *subject to applicable regulatory requirements 4 Forward Magazine Q Summer 2013 Airforwarders Association airforwarders.org Summer 2013 Q Forward Magazine 5 Chairperson’s Corner R ecently, at a major air cargo conference, airline executives claimed that forwarders might lose business if they failed to quickly adapt to e-freight, the IATA sponsored initiative that aims to build a paperless, end to end transportation process for air cargo. Historically, the all important developmental dollars spent by airlines have been heavily concentrated toward the passenger side of the business, leaving little on the table to be spent for cargo development, whether technologically focused or not. But what did the forwarding community do in response? Many compensated for this lack of investment by developing customer technology solutions on their own. Richard Fisher AfA Chairman It is instructive to consult Wikipedia for a definition of the term Supply Chain Management (SCM), where the result reads in part, “Supply chain management is a cross-function approach including managing the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods and the movement of finished goods out of the organization and toward the end-consumer.” Despite small cargo technology investment by carriers, forwarders have inserted themselves into their client’s supply chains at a multidisciplinary level, involving all different types of transportation and transactions, combining high level technological savvy with real time information management. Many forwarders have bridged Enterprise Resource Planning systems with their clients to provide real time information about the different types of products described in the definition above, as they move through the supply chain. “Supply chain management is a crossfunction approach including managing the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods and the movement of finished goods out of the organization and toward the end-consumer.” Simply put, whether product is at a factory awaiting collection, in the air or on the ocean, at the forwarder’s 3PL site, en route to the end-consumer or being readied for repair or replacement, the chances are that the forwarder is coordinating both the product movement and the data movement for all levels of client management using a holistic end to end strategy that focuses on shipper satisfaction, regardless of the selected transportation mode. And some airlines think that forwarders are slow to adapt to e-freight? Well, we have been pretty busy developing the e-systems that form the worldwide engine for moving, transacting and reporting the movement of goods in our client’s supply chains on a daily basis, every day, 24/7/365. So let this serve as a call to action: airlines, we are not your agents, we are your customers and we incorporate your services into the larger fabric of our clients supply chains. We are the high level managers and we need your transportation expertise, but don’t think for a minute that we are laggards. Shipping Reliability During the past 80 years, Alaska Air Cargo has served the Last Frontier and beyond with a record of reliability and exceptional service. From Boston to Barrow or Kona to Kodiak – and all points in between – we offer nationwide service and unbeatable frequency to more destinations in Alaska than any other major carrier. As we expand our network, some things never change; frequency, reliability and customer service remain the hallmarks of Alaska Air Cargo. TrusTed To deliver i THe #1 oN-TiMe AirliNe iN NorTH AMeriCA* i Kennet has been providing top-notch customer service for Alaska Air Cargo since 1980. 6 Forward Magazine Q Summer 2013 Airforwarders Association airforwarders.org Summer 2013 Q Forward Magazine *2010, 2011 FLIGHTSTATS.COM TM 7 Secretary’s Report T he only thing within the Airforwarders Association that is busier than Brandon Fried is a tool called the “Survey Monkey”. It seems the “survey monkey” is released more often than an opinion on a “nonpartisan” cable news channel….. IR CARGO, INC. Okay already, one organization couldn’t value our opinions that much, could it? Well, to be perfectly honest, the AfA does. Over the years, I have been associated with numerous organizations and served on more than a few Boards. And none, I mean none, can truly compare in how the AfA values its members opinions! At the last AfA Board Meeting, communication, surveys, etc. were major topics of discussion. It is understood that members want information flowing down to membership, but your Board also wants information flowing upstream as well. From this discussion came an idea, that many, including yours truly, feel will improve communication and provide for a better informed Organization. Steve Goldberg AfA Secretary Each member sitting on the AFA Board has been assigned an equal share of the organization membership to Liaison with. It is our hope that by shrinking the communication group, information will more readily flow in both directions. These liaison groups will provide AFA members a streamlined opportunity to learn and share opinions. Also these smaller liaison groups will provide each Board Member with a better understanding of the needs and wants of the Organization. lso these smaller liaison groups will provide each Board Member with a better understanding of the needs and wants of the Organization. When you are contacted, be part of your team. If you are not contacted and feel you should be, feel free to reach out to Brandon or myself and we will make sure that you are properly placed in a liaison group. Your opinions do matter, but only count if you share them! During June, your Board Members will meet in Washington, DC for two full days to strategize on future planning. It is now more important than ever that you share your thoughts for the future. Don’t stand on the sidelines, be a part of the process and your Organization. We hope we have now provided the conduit for this to take place. 8 Forward Magazine Q Summer 2013 Airforwarders Association airforwarders.org Summer 2013 Q Forward Magazine 9 Government Affairs By Clint Fisher, AfA Director of Government Affairs View from Washington While hurricane “sequestration” got off on a somewhat slow start (relatively few gusty winds), it did pick up considerable impact with the beginning of air traffic controller furloughs on April 21. As frequent users of the friendly skies – Members of Congress did not like the sounds of severe delays of flights and flight cancellations (especially right before Congressional recess). Thankfully – for our interests, the House and Senate reached an agreement on April 26 (right before Congress took a vacation) to allow the FAA to shift $253 million in airport improvement funds to pay for controller salaries and possibly – keep 149 air traffic control towers open. Other big Washington DC news included the President naming Charlotte, NC Mayor Anthony Foxx to be the next Secretary of Transportation. Foxx saw a number of big transportation projects in his tenure, including his push to expand the city's LYNX streetcar to UNC-Charlotte, the Charlotte Regional Intermodal Facility and a new runway at Charlotte Douglas International Airport. Senate Commerce is the responsible committee for holding confirmation hearings and Chairman Rockefeller has pledged to move the nomination as soon as possible. Foxx is not expected to have any nomination difficulties. Administration Presidents budget On April 10, the President released his FY14 budget. The President’s budget proposal can be viewed as a set of principles that could be used to develop a grand bargain on government spending and a way to resolve the sequestration issue and he does make some concessions on entitlement reform. At this time – reaching a grand bargain or even addressing the sequestration issue seems a long way off. For our purposes - the budget is quite aggressive in seeking higher taxes on the aviation sector. In the FY14 budget – CBP is asking for an additional 3,800 customs officers, which would be welcomed in the cargo processing world. Of the 3800 new officers, 1,600 would be funded from appropriated funds, while the other 2,200 would be paid for through fee increases. 10 Forward Magazine Q Summer 2013 Airforwarders Association airforwarders.org While most of these increases are in the form of immigration (passenger) fees and maritime port fees, they are proposing a $100-perflight air traffic control user fee designed to bring parity to funding the air traffic control (ATC) system and a .36-cent increase in the express industry reimbursable fee, from $1.00 to $1.36. Additional proposed taxes include; a tripling of the U.S. Transportation Security Administration passenger security tax to $7.50, an increase in the passenger facility charge from $4.50 to $8 per flight segment, an increase in the customs fee from $5.50 to $7.50 and boosting the immigration fee from $7 to $9. ACAS CBP, which has run an air cargo advanced screening (ACAS) pilot program since last October, has decided to extend the pilot program itself through October 26, 2013, and has opened the door through May 23, 2013 to new applicants to participate in the pilot. Congress The House Transportation and Infrastructure Committee Chairman Bill Shuster and Ranking Member Nick Rahall announced a special panel tasked with examining the current state of freight transportation in the United States and how improving freight transportation can strengthen the U.S. economy. FedEx’s Fred Smith testified at the first hearing on April 24 and noted the critical importance of Nextgen and called for an increased gas tax to fund infrastructure improvements. The panel is setting up an event in Los Angeles at the end of May and also will be going to Louisville, Memphis and New York. Congressman John Duncan (RTN) is chairing the panel with Congressman Nadler (D-NY) serving as the ranking member. Customs Reauthorization Bill The Senate released its version of the customs reauthorization bill on March 22 (House released both a republican and democrat bill at the end of 2012). The Senate bill allocates funding for the Automated Commercial Environment (ACE) and International Trade Data System, and requires CBP to complete the development of ACE in three years. The bill streamlines CBP’s duty drawback process by requiring electronic filing of claims and establishing objective eligibility requirements. The bill also authorizes the development of Centers for Excellence and Expertise and raises the de minimis level from $200 to $800 (same as the House bills). The House must now try to come to an agreement on its bill before conferencing the bill with the Senate. Summer 2013 Q Forward Magazine 11 At the Bar Our Legal Experts: Jacob (Jake) Fisher | Richard Furman Stephen Heifetz | Henry (Hank) Seaton | Roberta M. Yang HOT TOPICS: Responses to Member Inquiries Question: “Is the bill of lading the master contract? Can our rate confirmation supersede the BOL?” Reply: If handled consistent with recommended practices and procedures a rate confirmation can supersede the bill of lading (“BOL”). A “load confirmation” is, at a minimum, an inherent part of the contract of carriage because it typically establishes the negotiated rate payable by the broker to the carrier. The best practice to ensure a rate confirmation can supersede the BOL is for a property broker to have bilateral contracts with motor carriers which, in addition to addressing billing, payment, specialized services, etc., permit the broker to incorporate into the load confirmation reference to other contract terms and conditions that would trump those of the BOL. Provided there is a agreement with the carrier in place addressing the scope of the load confirmation, it should refer to the carrier’s contract of carriage and/or tariff, if any, and to the broker’s service conditions by reference so that it can be used as a standalone contract, to fully identify the duties and obligations of the carrier and the broker. This practice ensures the broker’s rights and duties are reduced to writing, are incorporated into the shipments on a load by load basis and, importantly, provide that the BOL contract functions as a receipt for goods only and does not alter the duties and obligations of the parties. In addition to the foregoing, absent a bilateral contract between the broker and carrier, the broker could be exposed to state law causes of action for loss or damage to a shipper’s goods, notwithstanding the absence of any liability under Carmack. Take for example, a situation in which the shipper demands the broker retain a carrier 12 Forward Magazine Q Summer 2013 Airforwarders Association airforwarders.org with unlimited Carmack liability. In the event the carrier has not agreed to such liability in its agreement with the broker, or there is no agreement between the broker and the carrier, and the carrier maintains its liability is limited to its published release rate of $.50 per pound the broker could face state law breach of contract responsibility for not providing a “full actual value” service provider. Similarly, if you are arranging for transportation as a surface freight forwarder, you can use a load confirmation sheet to incorporate reference to your contracts and/ or service terms and conditions, including those found on your standard bill of lading. Frequently, forwarders are unable to control the actual shipping documents and receipts executed at time of pickup. Therefore, stipulating that the forwarder’s bill of lading terms and conditions apply, notwithstanding the issuance of nonconforming receipts, can eliminate possible confusion and unexpected liability issues. Question: In addition to being a domestic and international forwarder and indirect air and ocean carrier, we also provide customhouse broker services. Are we subject to the MAP 21 requirement that we have property broker authority when on-forwarding a shipment to the consignee in another state after customs clearing the shipment? Reply: MAP 21 (“Moving Ahead for Progress in the 21st Century Act”) requires all persons arranging for motor carriage to obtain a property broker permit. This is a limited exception as to customhouse brokers (CHB) which exempts, “a customs broker licensed in accordance with section 111.2 of title 19, Code of Federal Regulations, only to the extent that the customs broker is engaging in a movement under a customs bond or in a transaction involving customs business, as defined by section 111.1 of title 19, Code of Federal Regulations.” The Federal Motor Carrier Safety Administration (FMCSA) has yet to publish final rules implementing MAP 21. Federal agencies, such as the FMCSA, have broad discretion to interpret the intent of congress when drafting regulations intended to enforce statutes. So, for the moment one can only speculate as to what extent the MAP 21 regulations may interpret the foregoing exception. The definition of “customs business” in 19 C.F.R. § 111.1 focuses on import entry practices and procedures and has no express of reasonably implied reference to ancillary services such as the domestic transport of cleared imported goods. Moreover, in a Headquarters Ruling, issued by customs well before MAP 21 was enacted let alone conceived, (HQ 224406, August 5, 1993), it was clearly held that “The inland transportation arrangements the importer wishes to make after the merchandise has been entered are not within the purview of the Customs Service.” This is suggestive of the view customs would likely take as to whether a CHB, arranging for surface transport of entered imported goods, is engaging in customs business when making such arrangements. Consequently, subject to what may be forthcoming in the final rules implementing MAP 21, it is anticipated that it is more likely than not a CHB arranging for the delivery of imported goods through interstate motor carrier or rail transport will be required to have FMCSA property broker authority. In such event, it will behoove CHBs to become well informed about the proper means of conducting business as a property broker. It is not as simple a matter as obtaining property broker authority and then proceeding to book freight with over the road carriers. As a general rule a property broker is not liable to loss or damage to goods for which it arranges transport. However, there are certain potential pitfalls which exist when the operating as a property broker. A CHB needs to be aware of and avoid such missteps so as not to be charged with a greater level Summer 2013 Q Forward Magazine 13 At the Bar of potential liability for loss or damage to the imported goods while in transit. This is a whole other topic for discussion which cannot be addressed within the confines of this piece. So for purposes of this article the advice is to seek professional guidance now, before obtaining property broker authority, as to how to properly and safely engage in property broker services. In sum, MAP creates a carve-out from compliance with the new broker regulations, provided long as the motor carrier transportation you arrange is part of your through service offering as CHB, as well as an NVOCC or indirect air carrier. Question: Often, when requesting proof of workers' compensation insurance coverage from a carrier, they use the excuse that all of their drivers are owner-operators/independent contractors. In such a case, what is the freight forwarder's liability if an injured driver makes a claim against the carrier and the owner of that carrier subrogates and seeks compensation from the forwarder? Reply: This is a very timely question that raises a very unsettled issue, which means there is no pat answer. Further, resolution of situations involving workers compensation claims tend to be very fact specific. In the situation you describe, it seems unlikely that the forwarder should be liable to the carrier, or its subrogated underwriter, for the driver’s injury claim. The forwarder contracted with the carrier, not the owner-operator/independent contractor (OO/IC). Even though “independent”, the driver was acting as an agent of the carrier 14 not the forwarder. Further, unless it can be established that the forwarder caused or contributed to the circumstances that led to the driver’s injury, the forwarder cannot be found directly or proximately liable for the injury. Bottom line, as to civil liability at least, the forwarder had no duty to the driver that it breached, upon which the carrier or the driver can predicate a claim against the forwarder. As an add on to the response to your question, it is worth noting that it is not uncommon for state workers compensation boards and similar authorities to try and obtain workers compensation payments from forwarders for drivers employed by trucking companies, as well as OO/ICs, where the company or the OO/IC has failed to obtain and pay for workers compensation insurance. The simplistic, but by no means exclusive, rationale for this is a self-serving presumption the forwarder is the “employer” of the driver. Consequently, forwarders need to operate in relation to the carriers they tender movements to in such a manner that it can be clearly demonstrated that any OO/IC the carrier utilizes is truly independent of the carrier, and by extension the forwarder. Therefore, the forward should endeavor to deal with carriers that maintain practices which demonstrate an absence or minimum control over the OO/IC, to include, but are not necessarily limited to : 1. The ability of the independent contractor to accept or turn down loads as well as choose the route for movements. 2. Avoid having the OO/IC or its drivers using uniforms with the carriers name or logo, or having its trucks emblazoned with the carrier’s name or logo. Forward Magazine Q Summer 2013 3. Independent contractors should maintain separate cargo and general liability insurance and copies of which should be obtained and maintained on file by the carrier as evidence of such insurance. 4. Independent contractors should have the right to use subcontractors to sub-haul loads. Ideally, it is recommended you have a written agreement with the carriers to which you tender loads, which, in addition to other important terms stipulates the foregoing. NEXT FLIGHT GUARANTEE Book it on NXT and we’ll get your cargo on the next available direct flight, or it’s free. If that is not an option, then the pick up/ deliver order, or any communications with the carrier, exchanged when arranging for the carrier to handle the move should have a legend to the effect that the move is being tendered solely to it and it is wholly responsible for the performance of the mover, that in the event it utilizes a OO/ IC to handle the move the OO/IC is solely the agent of the carrier, that the carrier is responsible for the performance of the OO/ IC, and that the carrier will hold harmless, defend and indemnify the forwarder for any claims, of any nature or kind, arising out of or relating to the carrier’s use of the OO/IC. The enforceability of the foregoing, while desirable, is not the prime consideration for its use. Rather, it will add to the ability to refute any claims made by third-parties against the forwarder, such as workers compensation premium claims, arising out of the use of OO/IC by a carrier in connection with moves booked by the forwarder with the carrier. 2 hour drop-off cutoff and 2 hour pickup window. Keep Those Questions Coming! Airforwarders Association airforwarders.org Summer 2013 Q Forward Magazine 15 AfA Member Profile Like Ulery, ICAT believes in the power of entrepreneurism, which is what has propelled the Elkridge, MD.-based company that celebrates its 20th anniversary this year. “We think when there’s skin in the game, the commitment rises,” says Rick Campbell, ICAT’s president and CEO, who created ICAT “from the ground up,” and is proud that original employees and agency partners continue to be affiliated with the company two decades later. The company has grown in most of its 20 years, and typically adds two or more new offices annually. In recent years, ICAT has been focusing on not only growing domestically, but globally as well. So far in 2013, ICAT has signed on two more offices, San Juan and Miami, to be more internationally focused and to expand its reach into the European and Latin American markets. ICAT Logistics at 20: Laser Focus: Being #1 Agency-Based Freight Forwarder “About three years ago, we identified our “sandbox”—ICAT would strive to be the #1 agency-based freight forwarder in the United States. That’s our goal – clear, concise and simple. Making that decision meant we were not going to take a piece of our agency partners’ income to fund our own company stores. We would fund our agency partners’ growth instead,” Campbell explains. Agency-Based Model Thrives on ‘You Grow, We Grow’ Teamwork Most franchisors follow a model that contains a mix of “owner-operated and franchised” offices, which can pit one form of ownership against another. ICAT chose to abandon that arrangement so its agency partners would not have to question allegiances or efforts “in the trenches.” “The people at the home office put themselves in our shoes every day.” T hat’s how Michelle Ulery, the ICAT Logistics agency partner who owns three separate offices, explains her relationship with ICAT’s World headquarters—aka, “the home office.” She appreciates the ICAT system, because she knows all too well the flip side from her past experiences with a previous company. Agency partners find that ICAT is willing to work “outside of the box” on their behalf. As Jim Vespa, vice president of finance explains it: “We go above and beyond in working for our agency partners, because our success is tied to them.” How does that look, in practice? “If a piece of business doesn’t fit nicely inside the contractual box from a fee standpoint, but the opportunity has merit, often we’ll work with them, in those cases, to come up with a mutually beneficial solution,” he says. “I heard about ICAT back in 2007. At that time, I had my own business and represented a competitor. I was getting frustrated by the lack of support they were giving my company— which was the largest agency in their system. We were being treated as though it was a burden to work with us, so I began making arrangements to bolt,” she said. Today, Ulery appreciates everything about her alignment with ICAT. An avowed entrepreneur, she relies on the home office to help her with complicated RFPs, insurance questions, personnel guidance or whatever additional assists she may need to grow her business. One of the recent highlights was Ulery’s ability to open the Dallas office with a bang, going from $0 to $600,000 in revenues within the first six months, thanks to the joint effort with—and referrals from—the home office. 16 Forward Magazine Q Summer 2013 Another way ICAT assists agency partners Airforwarders Association airforwarders.org is by providing a “big picture” view of their business, which can be difficult to see for the day-by-day operator. Such was the case with an ICAT office that relied on home delivery of consumer electronics purchased online. “On the surface, the business looked good, high shipment volume, attractive revenues —but this business has the knack of being a very claims-intensive business, and the margins are thin. At the end of the day, after factoring in all the costs, you really aren’t making any money,” Vespa remarks. Using the numbers, the ICAT home office team convinced the partner to pursue other types of business. “As a result, #1 they’re much more profitable today, and #2, it saves us a ton of time in the back office,” he explains. “We think when there’s skin in the game, the commitment rises,” says Rick Campbell, ICAT’s president and CEO, who created ICAT “from the ground up,” Some freight forwarders might have simply cut ties with an agency that was creating more work for the home office. Not ICAT. “In our case, we live and die with our agencies; they make or break us, and once on board and through our process, we do everything we can to help them succeed,” he says. “Yeah, we could’ve decided to move in another direction, but we clearly wanted to keep them in the fold, by getting them refocused and redirected into more profitable business.” The mark of a good partner is best determined by interactions not just during good times, but also in how the partner reacts during adversity. Accelerating Agency Owners’ Growth Because Campbell started ICAT in 1993, he has seen his share of market expansions and contractions—including the post 9/11 fallout and the most recent slog through the Great Recession. Through it all, he has led the company with energy, focus and integrity, qualities that—with the company’s impressive growth statistics—earned him the honor of receiving the Ernst & Young Entrepreneur of the Year award in 2006. In 2005 and 2006, ICAT Logistics appeared on Inc. 500’s fastest growing private company list—and in recent years has experienced growth of 1.2% from 2009 to 2010, and 8.8% from 2010 to 2011—again, during a period when many companies in the industry failed to survive. It was in 2010 that Campbell had a discussion with his longest standing agency partner, Dan Cser in Detroit, who has been with ICAT 19 of the 20 years it has been in business. “Dan and I have always interacted and consulted one another from the very beginning,” says Campbell. “Detroit was probably one of the hardest hit markets during the recession, and we decided to focus on Danny’s office growth.” The end result? A 35% increase in revenues from the previous year. The biggest obstacle for Cser was his understandable reluctance to hire a salesperson when the economy was so lackluster. However, Cser was considering buying a competitor’s business. Campbell convinced Cser to suggest, instead, that the seller reassess his business, and become an independent salesperson on commission for ICAT. “I’ll help you show him the monetary benefits and the lifestyle benefits,” Campbell recalls telling Cser. Today, that salesperson reports that taking Cser up on that offer was “the single best decision he’s ever made professionally,” with more time for selling—because he wasn't running a business—and just as important, more time for himself and his family, Campbell explains. “Our job is relatively simple,” says Campbell, “to help others grow by truly looking at what is best for them, and we will do just fine ourselves.” Cser appreciates the relationship he has with Campbell and the supportive crew at ICAT home office. “The value they have is that they’re the hardest-working executive team in the industry, and they are a readily available resource to the agency owner, to help in whatever endeavor the owner is trying to accomplish—whether it’s operations or training or sales recruiting or sales Summer 2013 Q Forward Magazine 17 AfA Member Profile generation,” says Cser, who runs an office with eight employees that does 80% of its business in the automotive market. “They will help you in any area that is not your strength, but yet important in running a successful business.” All an agency owner has to do is say, “I need help with ….,” and the ICAT home office will research ways to assist. “They will do coaching sessions at any interval you want, if you need it,” Cser notes. “The whole time I’ve been affiliated with ICAT, I’ve always been treated as a partner—not just as an office out in the field.” Cser’s input has helped not only himself, but other agency partners as well, since his “lessons learned” become part of the business model. That kind of sharing—“to make it better for other business owners who come on board”—is a large part of the “partnership” concept that drives ICAT, says Cser, whose office handles a good deal of international shipping, whether it’s an oversized piece of equipment that needs specialty handling, or finding a freight vendor to field all of a client’s shipping needs. International Growth: ICAT’s Global Presence ICAT has done business internationally for years, including the daunting task of moving an entire water amusement park from the U.S. to Saipan in 2003. “We’ve been involved helping firms on the international side for quite a while, and that has become the fastest growing segment of our business over the last several years,” said Campbell. Today, many companies are running lean, lacking the expertise or time to analyze how to best manage an international supply chain. That spells opportunity for ICAT. “We’re a mentor, an educator, and in some cases an adviser,” says Campbell. For instance, a Baltimore company that makes smart phone covers grew from infancy to $50 million in five years. “They source overseas, and while they have done an incredible job in many key areas necessary for this type of growth, international logistics per se is not part of that expertise depth,” he explains. “They’re bringing goods in from China via a wellknown carrier. They paid a very heavy bounty due to the method and manner in which they used that carrier—but that’s all they knew, because they were so focused on reliably 18 fulfilling promises to their key national customers.” Now, this company consults with ICAT about various issues, including custom regulations. “That’s a trend that will continue in our industry. Companies that can customize the added services, build partnerships, will add value,” Campbell explains. Another example of how ICAT delivers on that value proposition comes from Keith Buford, vice president of global operations. “We think it’s critical that we build an end-to-end turnkey product so that our agency partners can go out and pursue new clients, competing against the multinational forwarders for the supply chain business. We want to be able to offer them a solution, from an IT standpoint, from an overseas agency standpoint and from a global expertise standpoint with the support of the international home office folks. We can bring big picture ideas and solutions that they can take to their clients and, collectively, everyone wins: the customer, the agency and the home office,” he explains. Many of ICAT’s agents have close local relationships with companies they have served domestically for years. “They might do distribution for a particular product. Our international expertise allows the agency partner to ask, ‘How do you get your product here?’, which opens the opportunity to quote the business from the factory in Vietnam to the U.S.,” says Buford. Or, ICAT might look at a huge distribution center in California, and ask the client about where products are shipped to find ways of moving products closer to customers. Another option is to help agencies’ clients manufacturing in the U.S. discover ways to sell into the Chinese or Japanese markets. By strategizing with a multinational electronics customer, for instance, Keith and his team managed to save that client hundreds of thousands of dollars a year. They examined its international operations, and then recommended the purchase of a warehouse the company had been leasing so it could be converted into a bonded warehouse with U.S. Customs. “This allowed them to pay duty only when they used a product for manufacturing,” says Buford. to not only focus on major markets, but ancillary markets as well.” Highlighting ‘The ICAT Way’ Jeanie Perkins, ICAT vice president of administration, has been part of the company for the past 20 years. New to the logistics industry when she started, Perkins helped Campbell build the business in ways that made sense to them—whether it was the traditional “freight forwarder” method, or not. Her focus on agency partners is to treat them with the “utmost respect,” and to do the same for their customers, revising client practices as needed, for instance. “We’ll be supportive in helping to train them if they need HR assistance, or if they want help with an assessment before hiring someone,” she said. “We want to be their resource.” Perkins coordinates monthly one-onone “collaboration growth calls” between Campbell and each agency partner so they can explore goals and obstacles together. “That’s been huge,” she said, in promoting agency success. At ICAT, it is everyone’s responsibility to share ideas and to speak up if someone sees a better way to accomplish goals. That’s how they deliver on their commitment: “One Call. Right Solution…DONE!” “Our succinct messaging empowers every member of our team. Our Values, Our Mission, Our Vision and our Customer Promise allow each of our folks to act accordingly in their dealings with our internal and external partners,” Campbell, the CEO, says. His guiding principle is “growth,” for everyone the company touches. “Keeping my focus is the most important growth decision I’ve made on behalf of ICAT. For many years, we were opportunistic—not necessarily strategic—as a company. Now, we state it simply: Our “sandbox” is to be the #1 agency-based freight forwarder in the United States, as defined by the number of stations in the U.S.,” Campbell explains. Here’s an opportunity that will have everyone talking, secret texting that and mobile browsing. devices, It’s no including smartphones and tablets, are in high demand all over the world. AA Cargo offers an expansive network and reliable express product, Expeditefs, to help you make the most of this opportunity. With an expected market value of more than $795 billion in 2016, you may just want to use your own mobile device to learn more. Visit AACargo.com today for more information about our comprehensive products and services. Detroit’s agency owner Cser attests to the end result: “At ICAT, it’s always about ‘win-win.’ If that’s what you’re looking for, join ICAT and watch your business grow.” AACargo.com “We have over 400 agents throughout the world,” Buford points out. “That allows us Forward Magazine Q Summer 2013 WORLDWIDE SMART-CONNECTED DEVICE SHIPMENTS ARE EXPECTED TO SURPASS 2.1 BILLION UNITS IN 2016. AmericanAirlines Cargo is a service mark of American Airlines Inc. Source: IDC Worldwide Quarterly Smart Connected Device Tracker, December 10, 2012. Airforwarders Association airforwarders.org Summer 2013 Q Forward Magazine 19 2013 AirCargo Convention Did You Miss AirCargo 2013? Here’s what you missed… Enhance Your Growth and Profits: What You need to Know NOW to SUCCEED • Women in Cargo Networking Event • Keynote Speaker David I. Beatson, President of Ascent Advisors • How Can Airport facilities and Infrastructure Better meet Your Needs? • The Panama Canal Expansion: Discover the Opportunities Its Growth Can Add • Trucking Indsutry Challenges Affecting Airfreight Forwarders • Employees: What You Don’t Know Can Hurt You • TSA/CBP Regulatory Briefing: All the Latest Industry Compliance Developments Plus Networking Events, Exhibit Hall, and more! Download the presentations at www.aircargoconference.com See you next year in Orlando! 20 Forward Magazine Q Summer 2013 Airforwarders Association airforwarders.org Summer 2013 Q Forward Magazine 21 2013 AirCargo Convention 22 Forward Magazine Q Summer 2013 Airforwarders Association airforwarders.org Summer 2013 Q Forward Magazine 23 AfA Special Features PEGs often want to understand your M&A capabilities, the pipeline of potential M&A targets already identified, and management’s view of the right profiles of M&A targets. Return on Investment: B ased on the latest industry intelligence gathered at Air Cargo 2013, there is strong evidence that we will see a significant increase in the sale of logistics companies in 2013. This expected increase is due to a number of factors, including (i) growth of the economy overall, (ii) capital waiting to be invested, (iii) customers seeking a one-stop transportation vendor, and (iv) the ever-increasing cost and complexity of doing business in this industry (the latter two are factors fostering consolidation). Consequently, if you are the owner of a logistics company who wants to keep all of your options open, take action now to place yourself in the best position to close a deal if and when an opportunity presents itself. M&A Transactions In The Logistics Sector Forecast To Increase In 2013: Are You Ready For It? There are, of course, different types of buyers. This article concentrates on two such buyers, namely Private Equity Group buyers (“PEGs”) and Strategic buyers (“Strategic”). The decision whether to sell to a PEG or Strategic buyer will affect not only how you present your company but the proceeds you receive from the sale. Every transaction is different, and you should be working with a team of experienced and qualified advisors, including an accountant, a lawyer, a valuation advisor, and an estate planning professional before you enter into detailed sale discussions with anyone. By Norm Bluth, Partner, McBreen & Kopko The variables between a PEG and Strategic transaction are presented below in two sections. The first addresses the investment goals of each type of buyer and the second explains how each type structures a transaction. 24 Forward Magazine Q Summer 2013 Airforwarders Association airforwarders.org Investment Goals: PEGs and Strategics approach investment opportunities very differently as each has different goals. The major differences are: Strategics often value a business on both financial and strategic metrics. PEGs, by contrast, base their valuations on the likelihood that a company will be larger, more profitable and, therefore, more valuable at the time when they would like to exit. A PEG will have a target Internal Rate of Return (IRR) of 25% to 35% over their four-to-seven year investment horizon. Based on this required return, they can determine exactly how much revenue and earnings growth is required to meet their targets. Consequently, before talking with a PEG, you should consider creating a financial model that compares IRR results in several growth scenarios to better understand how investors will view your business. Exit Strategy: Strategies: When positioning your business for sale, remember that PEG and Strategic buyers require different positioning strategies. The thrust of your materials, conversations, and presentations should be very different for each. Strategics will be interested largely in how your company will fit into theirs. Can your products be sold to their customers? Do you have technology or other intellectual property that can build their business? Are there synergies? Are you active in markets that they’d like to enter? Generally speaking, they place less importance on factors like the strength of a company’s IT infrastructure or the prospect of losing some current management in the transaction - they already have senior executives and infrastructure in place. PEGs, by contrast, will be looking at your company as a stand-alone investment that must be able to grow and create value of its own accord. The thrust of the conversation with a PEG is around your management’s vision of the future – how the company fits into broader2 industry trends, how its business model will evolve and grow, details on your sales and marketing tactics, and how the company will deal with a major downturn in the industry or economy. While Strategics plan to own an acquired business indefinitely, PEGs generally have an investment time horizon of four to seven years. This means that PEGs are particularly sensitive to cyclicality in a business while Strategics are more comfortable with any inherent cyclicality. Investment Structures: As a result of the very different investment goals and approach of PEGs and Strategics, the deal structures utilized by each are, likewise, very different. The important differences to keep in mind when comparing PEG and Strategic deals are: Control and Governance: One key benefit to using a PEG as your exit vehicle is that you can realize partial liquidity while maintaining some level of control over your company post acquisition. Control and governance approaches vary widely, even between PEGs, so it is important to dig into these details. Another major benefit is that PEGs typically allow the business to continue running normally, with the same Summer 2013 Q Forward Magazine 25 AfA Special Features employees, the same facilities, and the same culture whereas Strategics often immediately implement cost-cutting and integration programs with the new owner. Business owners who are concerned about job security for their employees, maintaining their name on the business or otherwise preserving their legacy often find that selling to a PEG mitigates these concerns. If you choose the private equity route, however, be prepared for an expanded board. In a majority transaction, the investor will usually install a sufficient number of new directors to give the PEG a controlling vote on the board. In a minority transaction, the company’s management team may get to keep a majority of board seats. Board meetings often become more formal and are held on a more regular basis than they might be in a typical middle market business. While you and your team remain in charge of day-to-day operating decisions, your board and PEG will have input (to varying degrees) on broader strategic questions, including product line and geographic expansion, key management hires, acquisitions and other financing events. Valuation and Net Proceeds One very important factor is economics. Strategics can typically afford to pay more because they will benefit from synergies between their organization and the acquired company. Additionally, Strategics will often buy your entire company outright, in a single transaction. PEGs, by contrast, normally buy only a part of the company. As a result, your immediate proceeds will usually be smaller in a private equity deal than in a strategic one but, long range, you may end up with more money. Management’s Post Acquisition Role: Another factor to consider is your own ongoing\ employment commitment. Management teams may wish to exit their businesses, either to retire or do something else. A Strategic will generally provide that option – usually with some type of transition period in place (a typical range is from six months to two years). Conversely, a PEG will not only want management to stay, they often want to see an equity investment by the management team as part of the transaction. 26 Thanks its Platinum Members! Risk and Leverage: In a standard sale to a Strategic, you tend to leave yourself with little or no execution or industry risk going forward (unless you agree to an earn-out as part of your deal). In a private equity deal, however, you continue to hold execution and industry risk along with the additional risks associated with shared governance and control. Debt: In most cases, companies that take on private equity will reconfigure their capital structure, adding leverage to their balance sheets. That is one of the major differences between selling to a PEG and a Strategic. From a capital structure perspective, PEGs can enable entrepreneurs to prudently use leverage to minimize dilution and increase their longterm equity value. However, leverage - and the regular payments of principal and interest that debt entails - can be a double-edged sword. If there is too much leverage, some entrepreneurs may not be comfortable, causing them to take actions like cutting costs and running the business differently. With a PEG, you can still run your business independently but the leverage may constrain what you can and can’t do. Structure and Tax Implications: Every transaction tends to have its own unique structure and tax challenges, regardless of the buyer. That being said, Forward Magazine Q Summer 2013 private equity transactions tend to be more complex, involving multiple tiers of stocks (including preferred stocks with significant dividends and potential liquidation preferences) and complicated post-acquisition governance issues. The additional layer of debt often used to fund the private equity transaction adds another layer of complexity to the due diligence process, the drafting of legal documents, and the approval process. AIT Worldwide Logistics Alaska Air Cargo Delta Airlines Cargo Now that you have a better understanding of the investment goals of and structures offered by PEGs and Strategics, what is the right transaction for you? Are you ready to engage in the sale process? The clock is ticking. JetBlue Airways National Air Cargo, Inc. About the Author: Radiant Global Logistics Norm Bluth is a Partner with McBreen & Kopko, a full service law firm with offices nationwide. He co-chairs McBreen & Kopko’s Transportation and Travel Group. Norm has spent his entire career immersed in the Transportation and Travel Law business, practicing privately with recognized transportation law firms and as in-house counsel for both Trans World Airlines, Inc. and a structured finance firm specializing in the acquisition and restructuring of transportation-related companies worldwide. With both in-house and outside counsel experience, Norm has developed a 360-degree perspective, allowing him to facilitate both business and legal solutions. For additional information on McBreen & Kopko and Norm Bluth, please visit, www.mcbreenkopko.com. Airforwarders Association Rock-It Cargo USA LLC Seko Worldwide Southwest Airlines Cargo Team Worldwide Transgroup Worldwide Logistics Inc. airforwarders.org Summer 2013 Q Forward Magazine 27 AfA Viewpoint The Real Cost of Doing Nothing Maintaining the status quo of your IT systems may be more expensive than you think By Ralf Moller, General Manager Marketing for CargoWise W e’ve all done it before. Whether it’s the worn tires, leaky fridges, threadbare jeans or that slipping clutch, at some stage we’ve all put off new expenditures in the hope that the older version will hold on just a little longer. The reason we do it is simple: new items costs money, and we know exactly how much new things cost because it’s written in black and white on the price tag. What we don’t often see is the parallel cost of not replacing the tires or clutch, either in terms of extra wear and tear on the car, or in terms of the increased risk of an accident. immediately and in the long run. Some of the most sophisticated IT purchases require hiring professional service firms to calculate the total cost of ownership and return on investment on new IT systems; and in many cases the Chief Information Officer will have to provide regular reports to indicate whether the new system is in fact producing the promised savings on operational expenditure. But even in smaller organizations, it should be possible to do a quick audit of operational costs and determine whether or not savings can be made by adopting new technology. The same is true in business. Most of us will attempt to get the most out of existing systems rather than upgrading to a new platform, often without realizing that the delay is probably costing far more than fixing the problem now. This is particularly true when it comes to information technology. Even in large organizations, which have entire departments dedicated to IT, it can be very difficult to calculate the total cost of an IT system as it ages, because many of these costs are hidden in inefficient practices. The costs of the system appear in the IT budget; however the real costs of not replacing the old system are spread through the rest of the company, hidden in excessive maintenance and utility costs, overtime, staff burnout and data loss. If you’re considering software to replace manual systems, consider the wages you’re paying to staff to fulfill simply repetitive jobs like data entry, as well as the time it takes to actually enter and clean the data. For example, a new server will cost around $8,000 to buy, and about $4,000 to run in the first 12 months with downtime under one percent. Fast forward five years - the server you bought for $8,000 in 2007 is now costing you $17,000 a year to run and outages are running anywhere between 10 and 15 percent of the time. And then there are all the indirect costs associated with having unreliable systems: frustrated staff and customers, contracts which you don’t win because your sales team couldn’t get the quote out on time, sales opportunities that you don’t see because the email server was down … and the list goes on. Part of the challenge is that neither the $17,000 nor the value of that lost business ever appear on a single budget line – you simply spend the $326 per week on attempting to keep the server online, and fail to bank the lost business. It’s little wonder that many balk when presented with a quote on a new system, even though in many cases it will be cheaper, both 28 Forward Magazine Q Summer 2013 Airforwarders Association airforwarders.org If you’re running your own servers, and comparing the cost to a cloud-based system, make sure to include the hardware costs, wages, electricity and connectivity costs on a monthly basis, and compare this to the ongoing maintenance and support costs quoted to you. If you’re considering software to replace manual systems, consider the wages you’re paying to staff to fulfill simply repetitive jobs like data entry, as well as the time it takes to actually enter and clean the data. It’s always tempting for smaller organizations to try to piece together software to run their business based on software or services they already have. These same organizations often end up wasting time and resources transferring data between poorly matched databases, financial packages and customer contact systems. In the same way, it’s tempting for larger companies to attempt to build their own software – an approach which always costs more and delivers less than is required. Both approaches suffer from systemic failure, because it is difficult to find IT staff that can keep the collection of systems running and avoid strategic failure. Because your IT staff spends so much time simply keeping the system operating, they often fail to make the small iterative changes needed to keep you ahead of your competitors. So next time you sit down to consider whether to pay a professional software development company to deliver and progressively upgrade your enterprise software, or sticking to the status quo, make sure you take a moment to consider the real costs. In most cases, what appears to be the cheapest solution may in fact be the most expensive. ABOUT CARGOWISE® CargoWise is a global leader in logistics technology solutions that improve visibility, efficiency, quality of service and profitability. CargoWise is renowned for its nextgeneration solutions, including ediEnterprise, the industry’s only integrated single platform supply chain logistics management system with truly global capability. With clients holding more than 90,000 licenses across a customer community of 4,500 sites in 85+ countries, CargoWise solutions are an integral part of the global supply chain. The company operates worldwide from offices across the U.S., Europe and Asia. For more information visit www.cargowise.com CargoWise is a key product brand of WiseTechGlobal, an international technology development company dedicated to delivering innovative, market-specific software solutions worldwide. For more information visit www.wisetechglobal.com. Summer 2013 Q Forward Magazine 29 Member News Jetsea Logistics Adopts ediEnterprise in the Cloud Vaughn Moore Delivers Annual Outlook at Industry Group Gathering Productivity pressures lead to increased implementations of ediEnterprise in Singapore CargoWise®, a global leader in technology solutions for logistics service providers (LSPs), announced its cloud-based ediEnterprise solution has been adopted by Singapore-based intraAsia freight specialist Jetsea Logistics. Founded in 1994, Jetsea Logistics has a staff of 20 and provides a full complement of air and sea freight services, as well as multi-modal transportation, warehousing and logistics management. Tay Hsu Li, Jetsea Logistics Director, decided to make a change from a decadeold system to ediEnterprise in an effort to boost productivity and enhance customer service. “We found ediEnterprise to be very comprehensive in terms of having all our departments business processes enabled in a single integrated solution in one single portal,” says Tay. “This was something we did not have with our previous system. We also found the overall cost of implementing and using CargoWise solutions to be very reasonable in comparison to other solutions.” Mike Coney, Vice President of Business Development for CargoWise in Asia, says Jetsea Logistics is one of a number of new customers in Singapore, where a high level of competition has forced the freight and logistics industry to increase focus on productivity. “Freight forwarders like Jetsea Logistics are increasingly looking for opportunities to boost productivity in the short-haul airfreight market where margins are tight,” Coney says. “We are seeing a steady escalation in the number of companies switching to CargoWise and its ediEnterprise cloud solution to deliver the productivity and on-going improvements necessary to achieve its business objectives.” Email: [email protected] AGS Offers a Freight Service Tailored for the Retail Industry New York based Associated Global Systems (AGS), a full service transportation and logistics provider, offers a complete freight service program designed specifically for the retail industry. With the high cost of floor space and the need to maximize sales from increased display space, most stores have been setup with minimal back storage room area. This often creates challenges in coordinating fixture deliveries to meet the installation schedule. To solve this problem AGS will deliver to stores anywhere in the country in the evening after the store closes to coordinate with the arrival of the installation crew. With a network of over 400 storage sites, AGS can provide temporary storage of fixtures at their facility for new store openings as well as existing stores to meet specific requirements that would streamline the fixture installation process. And with many retailers expanding to self‐service Kiosk machines at malls and other locations, AGS can arrange for pickup and transportation from the Kiosk vendor and for time definite delivery and placement at the final destination. AGS understands the constraints which retailers face daily. Partnering with AGS for logistical function will allow retailers to make their business more efficient and cost effective. Associated Global Systems has been serving customers since 1958. With over 125+locations and a staff of transportation experts across the U.S., AGS handles shipments of any size, to or from every zip code in the U.S. and Canada. They serve 196 countries around the world. For more information on AGS' full menu of services, visit us online at www.agsystems.com. 30 Forward Magazine Q Summer 2013 IAG Cargo Announces Fourth Quarter and Full Year 2012 Financial Results IAG Cargo has today announced its fourth quarter results from October 1 to December 31, 2012 and full year results January 1 to December 31, 2012. IAG Cargo has reported fourth quarter commercial revenue (flown revenue plus fuel surcharges) of €329 million versus €310 million in the same period last year. For the full year IAG Cargo reported commercial revenue of €1,217 million, an increase of 2.3 per cent on the same period in 2011. Volumes of 1,561 million cargo tonne kilometres (CTKs) for the quarter represent a decrease of 2.2 per cent versus the same period last year. For the twelve months the figure is 6,080 million CTKs, a decrease of 1.2 per cent on the same period in 2011. Cargo capacity for the quarter was up 3.3 per cent and up 3.5 per cent for the full year. Overall yield (commercial revenue per CTK) for the fourth quarter increased by 8.5 per cent versus the same period last year. Steve Gunning, Managing Director for IAG Cargo commented: “Given the continued challenging economic backdrop, we have remained focused on the continuing integration and alignment of the business. In 2013 we will continue to deliver valuable network reach for our customers, offering userfriendly multi-channel distribution and providing an outstanding product portfolio.” Airforwarders Association Vaughn Moore, President and CEO of AIT Worldwide Logistics, recently presented his 2013 transportation industry outlook to members from two local chapters of The Associations for Operations Management (APICS) for the third consecutive year. suggested that it is an important movement for the country to regain some of its manufacturing base. He spotlighted Chicago in particular as a city experiencing some growth in manufacturing and enjoying a strong downtown resurgence. The event kicked off with an hour for networking followed by a sit-down dinner in the Sky View room of the Holiday Inn in Elgin, Illinois. After an introduction from Highlands chapter president Jim DeModica, Moore spoke and fielded questions for the next 60 minutes, covering the major sectors of the industry and coupling global trends with insights about how transportation and operations managers may be affected. Moore also spoke about the tremendous investment AIT has made in training and technology over the past six months and tied it to a broader trend exhibited by many companies in the logistics arena. Numerous audience members nodded in agreement and confirmed efforts made by their companies to make similar investments. Asking “What are you doing differently to help your business grow?” and “What new things are we trying in an effort to work around the obstacles we face?” he challenged those in attendance to look for creative avenues when taking on difficult situations in their roles. An overall theme that emerged from the wide-ranging discussion was an expectation of flat to possibly very modest growth in the economy. Uncertainty and balance were also recurring notions throughout the presentation with Moore expressing that many transportation sectors are struggling to balance supply and demand in terms of capacity. Specifically, sea freight overcapacity is predicted to lead to rate volatility in 2013. Trucking was mentioned as another example where hours of service regulations and driver shortages will squeeze capacity further for a mode that just had its best year in decades. The uptick in manufacturing jobs returning to North America from overseas (also known as ‘nearsourcing’ or ‘reshoring’) was a topic hot on the minds of the supply chain professionals in attendance. Moore confirmed it is a trend he’s seen with many AIT customers and NEW_TransAd 7.8125 x 4.5_c.qxd 5/16/12 4:03 PM As the evening came to an end, Moore suggested to the group that they remember to bring some fun and enjoyment into their daily roles, thus fostering more positive work environments. “When we come to work and enjoy each other’s company, that is truly what opens up the communication and creativity so essential to professional growth and the health of our respective businesses.” Afterwards, APICS' Highlands chapter president Jim DeModica said, "The board and our members wish to thank AIT President and CEO Vaughn Moore for his insights on today's transportation environment and we look forward to hearing from him again next year." Page 1 100 FREIGHT INTERMEDIARIES CAN’T BE WRONG Over the years, Benesch has provided legal consultation and pragmatic business advice to well over 100 Transportation Brokers, Surface Freight Forwarders, Ocean Freight Forwarders, NVOCC’s, Air Freight Forwarders, Warehousemen, 3PLs, 4PLs, and other Freight Intermediaries of all kinds. They know that when it comes to corporate structuring, mergers and acquisitions, transportation and logistics contracts, best practices, regulatory challenges, insurance and risk management, freight loss and damage or freight charge disputes, catastrophic personal injuries, and independent contractor relationships — Benesch knows Intermediaries. Counsel for the Road Ahead MEMBER SM MEMBER MEMBER Cleveland | Columbus | Indianapolis | Philadelphia | Shanghai | White Plains | Wilmington | www.beneschlaw.com airforwarders.org Summer 2013 Q Forward Magazine 31 Member News Cargo Airport Services USA introduces digital signatures in the warehouse with the ePic™ mobile warehouse system Columbus Regional Airport Authority Launches New Brand Reflects Vision to Connect Central Ohio with the World, Aligns with Community Branding Efforts Cargo Airport Services USA, LLC (CAS) announces the release of its latest version of the ePic™ mobile warehouse platform that enables truckers to sign for their freight directly on iPads. CAS is now positioned to introduce a truly paperless import process to the air cargo community. Drivers signatures are visible to forwarders through the ePic customer service portal (http:// epic.casusa.com) and to airlines through the ePic Airline Portal (http://al.casusa.com). “We are very pleased to offer our customers this added visibility into the status of their freight,” said Michael Duffy, President and CEO at CAS. “Providing all parties access to this level of detail makes it easier for us all to focus on what’s most important, which is moving freight quickly and efficiently through our facilities. True quality service only happens when unnecessary complications are taken out of the process.” Prior to innovation, truckers and staff signed paperwork generated when the trucker was checked in. The paperwork would then need to be filed and retrieved when requested by airline representatives. Now all parts of the import delivery process are captured real-time and electronically saving valuable time for all. Now all parts of the import delivery process are captured real-time and electronically saving valuable time for all. “Our vision for ePic was to create a type of ecosystem where all aspects of cargo handling, including both import and export cargo, interact through a cohesive, automated, and natural process,” says Tom Choi, Chief Financial Officer at CAS. “ePic promises to provide significant efficiency improvements for every stakeholder in the cargo community.” Cargo Airport Services USA is based at JFK International Airport and provides ramp, international cargo handling and facilities management services to more than 80 carriers in 27 cargo facilities throughout the United States and Canada. CAS has cargo operations at JFK, IAD, EWR, MIA, FLL, IAH, DFW, ORD, SAT, OKC, SAN, SEA, YUL, YMX and YYZ. CAS expansion plans include other international gateways throughout North America. For more information regarding CAS, contact Phil Jensen, Director of Sales and Marketing, at (917) 842-3579 or [email protected] or visit our website at www.casusa.com. Now booking advertising for the Fall issue Forward Magazine Deadline to reserve space July 31, 2013 Want to get your message out to the forwarding industry? Then you need to advertise in the next issue of Forward Magazine, the official magazine of the Airforwarders Association. If you have not already pre-booked an ad for the next issue and would like to, please call 202-591-2456 for a media kit. 32 Forward Magazine Q Summer 2013 The Board of Directors approved a resolution endorsing a comprehensive brand strategy for the Columbus Regional Airport Authority, Port Columbus International Airport, Bolton Field Airport and the multiple components of Rickenbacker including an airport, inland port and foreign-trade zone. The branding provides a new look and feel, a new voice and new logos for the organization. United Accepts New Tracking and Monitoring Devices United Cargo, one of the world's largest belly carriers, announced it will accept two new tracking and monitoring devices on its entire mainline jet fleet of nearly 700 aircraft linking 381 airports across six continents. The announced additions increase the number of cargo tracking and monitoring devices accepted by the carrier to 10. The new models accepted by United Cargo are the Moog Crossbow ILC2000 and the FedEx SenseAware 2000. Tracking and monitoring devices previously approved for acceptance by United Cargo include the following: • 7PSolutions GL200-Tracker • CartaSense U-Sensor/CCM • Cubic Global Sentinel-5L • Cubic Global Sentinel-5B • Cubic Mesh Asset Tag RSU-3 • FedEx SenseAware 1000 • OnAsset SENTRY 400 FlightSafe® • U.S. Postal Inspection Service PT-200 “The brand strategy reflects the drive of our skilled, dedicated team of professionals who have a laser-sharp focus on delivering exceptional travel experiences for passengers, strategic opportunities for businesses, and vital economic growth for the Central Ohio region,” explained President & CEO Elaine Roberts, A.A.E. “This new brand also aligns us with the community’s branding efforts while providing “The brand strategy reflects the our organization the opportunity to present clear, compelling messaging like never drive of our skilled, dedicated before.” team of professionals who have a laser-sharp focus on delivering exceptional travel experiences for passengers, strategic opportunities for businesses, and vital economic growth for the Central Ohio region,” explained President & CEO Elaine Roberts, A.A.E. The Airport Authority partnered with Columbus-based Ologie, a national leader in developing and executing brand strategies, to conduct in-depth market research and define brand aspirations in support of the Strategic Business Plan. The result includes clearly defined brand architecture, key messages and brand attributes to create consistent and compelling messaging for passengers, the community and businesses. Additionally, an evolved visual identity was adopted to allow the Columbus Regional Airport Authority brand to connect its airports and other assets with the community. This connection reinforces the organization’s alignment with the bold new vision of the Columbus brand while establishing a distinctive new icon that allows the Columbus Regional Airport Authority to support its vision to connect Central Ohio with the world. The comprehensive brand strategy will be implemented in phases, with the full transition completed by mid-2014. ALG Worldwide Logistics, LLC Opens Minneapolis Area Office ALG Worldwide Logistics, LLC announces the opening of a new facility in Bloomington, MN. The office consists of industry veterans whom specialize in international transportation with an emphasis on inbound logistics and customs brokerage. The sales and operations departments have an in-depth knowledge of international cargo including experts with 30 years of customs brokerage experience, as well as extensive on-theground sales and service while living and working with partners in Hong Kong. This collective expertise will be beneficial in serving all clients in the Minneapolis / St. Paul area. The team also has an intimate understanding of the local market needs given that several personnel have been lifetime residents of the Minneapolis and St Paul area. This is just one of the many geographical expansions planned in the near future by ALG. For more information about ALG Worldwide Logistics, please visit our website at www.algworldwide.com "A growing number of cargo customers are seeking the increased visibility and enhanced monitoring options they gain when one of these devices is attached to or enclosed within their shipments," said Robbie Anderson, President, United Cargo. "We are very pleased that, by working with the FAA and United's Engineering experts, we can offer United's customers more options for obtaining expanded tracking and shipment condition information when they transport cargo on our unparalleled worldwide network." Airforwarders Association airforwarders.org Summer 2013 Q Forward Magazine 33 Member News Central Shipping Selects CargoWise in Ireland Dublin-based air freight specialists set to adopt ediEnterprise in the cloud CargoWise®, a global leader in technology solutions for logistics service providers (LSPs), announced the adoption of ediEnterprise by Dublin-based, boutique air freight specialists, Central Shipping. Founded in 1961, Central Shipping is well recognised for its capacity to transport and deliver high value goods, offering services from air and sea freight, through to warehousing, courier services, and 3PLs. Having decided to upgrade the company’s software in early 2012, Central Shipping Managing Director Philip Clancy, says he considered a number of locally-produced software packages, but ultimately selected ediEnterprise from CargoWise because of its capacity to reduce the time and paper work associated with processing shipments. for Cargo, including 22 new nonstop destinations. Many other markets will receive new service, as well. Customers can track their shipments on Southwest Airlines and AirTran Airways though swacargo.com or by using Southwest’s GPS tracking device, Cargo Companion. For information on all services including Cargo Companion, please visit swacargo.com or contact your local Cargo Area Sales Manager. Southwest Airlines Cargo will continue to offer more destinations as the integration of AirTran Airways continues, with completion anticipated in 2015. “It would be ideal if we can achieve what we do now in a more time efficient manner with less paper, as it will allow us the opportunity to expand,” Clancy says. “We most certainly want improved productivity and our ultimate goal is toward the adoption of more automated processes.” Rather than host the software internally, Central Shipping has opted for a cloud-based version of ediEnterprise, allowing significant savings in hardware and ongoing maintenance costs. Simon Clark, CargoWise Vice President Business Development for Europe, says he is delighted to have such a highly respected and astute freight forwarder as Central Shipping adopt ediEnterprise, which will provide the company with the opportunity to improve productivity without increasing costs. Estes Adds Hub to Enhance Midwest Next-Day Service “We look forward to working with Central Shipping to optimize its use of ediEnterprise to increase capacity and expand the company’s operational load without having to bring on extra staff,” says Clark. “The company will be able to replace a number of systems and stop gap measures with a single database which will enable it to reduce processing times, and enable it to grow.” As part of its continual improvement process, Estes has converted its Rockford, IL, terminal to a hub to enhance its Midwest next-day service. Southwest Airlines Cargo Expands Service to Airtran Network The Rockford hub will consolidate freight coming in from 19 terminals to build full loads for specific geographical regions, while increasing the number of next-day opportunities to Minnesota, Iowa, Wisconsin and Illinois. The new hub offers an additional 2,844,593 next-day point-to-point combinations bringing the total to 7,205,026. Southwest Airlines achieved a milestone on April 14 as the carrier began shipping cargo on AirTran Airways under the Southwest Airlines Cargo brand. The airlines successfully completed connectivity of the two networks earlier this year, opening up more destination options and reaching more potential Customers. In addition to broadening the overall cargo network across the two airlines, Southwest introduced four new cargo destinations to their route map: Charlotte, N.C. (CLT); Rochester, N.Y. (ROC); Richmond, Va. (RIC). Beginning May 1, Southwest Airlines Cargo will serve San Juan, Puerto Rico (SJU). Connectivity of the carriers’ networks means hundreds of new flights and 68 new nonstop markets for Cargo Customers to experience the reliable service and hardworking Employees that Southwest Airlines Cargo has to offer. “Connecting the Southwest and AirTran Networks opens up a number of opportunities for our cargo service to grow, offering new flights and significant increased capacity for our Cargo Customers,” said Matt Buckley, Southwest Airlines Vice President Cargo & Charters. “It’s a testament to the success of the AirTran acquisition, and we’re excited to offer expanded service to our existing Customers and introduce our product to new ones!” Now, Southwest Airlines Cargo not only can connect through Southwest-to-AirTran flights, but also through AirTran-only or AirTran-to-AirTran flights. Our Cargo Customers in Atlanta (ATL) will see a significant amount of new service, with 90 additional flights available 34 Forward Magazine Q Summer 2013 “Estes is continually seeking ways to improve our operations to better serve the needs of our customers,” said Estes Executive Vice President and COO Billy Hupp. “The addition of the Rockford hub greatly improves our efficiency and ability to offer next-day service to even more locations.” With the addition of the Rockford hub, Estes now operates 20 hubs throughout its extensive North American transportation network. Estes’ Rockford location employs 73 people and opened in 1999. Airforwarders Association airforwarders.org Summer 2013 Q Forward Magazine 35 Member News FreightOS™ announces new era of automation for the world freight industry Launches FreightOS product which automates the pricing of air, ocean, and land cargo on the Web The world freight market is the foundation of all international trade, but is still a traditional industry where pricing and paperwork are mostly manual. In March, FreightOS™ launched a unique sales automation solution for freight, at conferences in both Las Vegas (AirCargo 2013) and Bangkok (WCA & WPA). With FreightOS, freight forwarders can for the first time automate the pricing and sales of freight services from their own websites. The FreightOS product encompasses all the complexities of freight pricing, including carrier contracts in multiple formats, fast-changing and seasonal fees, and complex price breaks and surcharges. FreightOS can generate complete door-to-door quotes in five seconds, spanning air, ocean and land. Prior to today’s public launch, FreightOS has been running successfully for some months at both smaller independent, and top-tier multi-national freight forwarders in the US, Asia and Europe. Alessandra Fremura, CEO of Shipping Services Italia Inc., is one of the early customers of FreightOS. “We are a dynamic freight forwarder looking for top quality IT providers to continuously improve our service,” she commented. “We found in FreightOS a great partner who enabled us to speed up quotes to promptly meet our customers and agents’ needs.” FreightOS is managed by Dr. Zvi Schreiber. Zvi has a track record of creating a number of innovative software/Internet startups, including one acquired by IBM. As CEO of Lightech (acquired by GE Lighting) he experienced the frustrations of buying freight services, moving Zvi to found FreightOS to bring the benefits of the Internet to logistics. “It sometimes takes three days to get a price quote for a 3-day air freight consignment!” Zvi said. “Now with FreightOS, freight forwarders can automate the sales process to increase their sales and reduce costs. Provided as a cloud service, no capital investment is required, making FreightOS suitable for forward-looking freight forwarders of all sizes.” FreightOS has launched auto-quoting sites for freight forwarders in as little as three days. About FreightOS FreightOS™ is the leading sales automation platform for the logistics industry. The FreightOS software-as-a-service (SaaS) technology allows freight forwarders and carriers to manage contracts, and automate and manage the quotation and sales process, from their own website. Emirates selects IFS Applications to manage new engine overhaul facility IFS, the global enterprise applications company, announces that Emirates, one of the world's fastest growing international airlines with one of the youngest fleets in the sky, has selected IFS Applications™ 8 to manage its new engine overhaul facility in Dubai, UAE. The solution will support all business processes including maintenance, repair and overhaul (MRO), and corporate performance management (CPM). The contract includes licences and services worth in excess of US$6 million. In 2011, Emirates announced the construction of Asia's most technically sophisticated engine overhaul facility in Dubai. The facility will cover 90,000 square meters and will serve as Emirates’ in-house engine overhaul facility. IFS Applications will support all operations at the overhaul facility, which, when fully operational, will service up to 300 engines per year. The solution includes IFS's Complex Assembly MRO feature, which has previously been delivered to Finnair and Alitalia Maintenance Systems. The solution also offers advanced CPM capabilities and integrated support for finance and HR. The FreightOS team, led by Zvi Schreiber, has a strong track record of creating innovative technologies, including technologies which have been acquired by IBM and GE. The team has built the world’s most sophisticated pricing and routing platform for logistics, layered on top of a next-generation business-to-business (B2B) transaction engine known as TradeOS. "Emirates is one of the world’s most dynamic airlines and its new engine overhaul facility will undoubtedly set new industry standards in MRO process efficiency," said Ian Fleming, Managing Director, IFS Middle East, Africa and South Asia. "We are proud to be a part of this project, which reaffirms our leading position in the Aerospace industry." FreightOS is the trading name of TradeOS Limited, a Hong Kong company. The company is at www.freightos.com and also operates a spot market for freight at market.freightos.com. The implementation will be completed in the first half of 2014. FreightOS automates the quoting process for some of the world’s largest freight companies, in all continents, and across air, ocean and ground, delivering the benefits of increased revenue and reduced cost. 36 Forward Magazine Q Summer 2013 Airforwarders Association Hassett Express Integrates FindMyFreight. com with H-Trac FindMyFreight.com, a product of Freight Innovations, LLC, announced that Hassett Express has integrated FindMyFreight.com into their transportation management application called H-Trac. Hassett Express is a leading provider of time-definite transportation solutions in the U.S. “We are excited about our new partnership with Hassett Express, states Brad Hockersmith, President of Freight Innovations LLC. “Shipment tracking is a core function for all transportation providers. FindMyFreight.com provides a competitive advantage to Hassett by streamlining the process.” L-3 Security & Detection Systems’ eXaminer® EDS Receives New TSA Certification L-3 Security & Detection Systems (SDS) announced in March that its eXaminer® 3DX and 3DX-ES explosives detection systems (EDS) have been certified by the U.S. Transportation Security Administration (TSA). These are the first systems to pass the TSA’s rigorous new certification standard. “This critical advance will continue to allow customers to screen for a wide range of new emerging threats as part of an ongoing commitment to passenger safety,” said Thomas M. Ripp, president of L-3 Security & Detection Systems. “We deeply value our long-standing relationship with the TSA and have made a “We deeply value our long- significant investment in working with TSA officials to equip our systems with capabilities standing relationship with the that adapt to an ever-changing threat TSA and have made a significant environment.” investment in working with TSA officials to equip our systems with capabilities that adapt to an ever-changing threat environment.” L-3 SDS has a comprehensive portfolio of internationally recognized explosives detection systems approved by TSA, ECAC and other global regulators. Its Standard 3 EDS solutions provide continuous flow CT technology using advanced automatic explosives detection technology and offer some of the lowest false alarm rates in the industry. From light- and reduced-size to medium- and high-speed systems, the eXaminer family accelerates the movement of passengers and bags. Since 1998, L-3 SDS has used medical-grade imaging technology developed for aviation security with an understanding of the complex demands faced by airport personnel and regulatory agencies around the globe. Over 1,000 eXaminer systems have been deployed at airports domestically and internationally and are supported by L-3’s world-class service organization. airforwarders.org FindMyFreight.com is a web based Application Programming Interface (API), which speeds up on-demand shipment tracking requests. Freight professionals can use the FindMyFreight.com carrier database and API to request tracking data for any shipment, on any carrier, and be instantly connected to the carrier’s website and shipment status details. “Our team has embraced the FindMyFreight technology” states Donald S. Prentice, VP of Customer Relations for Hassett Express. The “Quick Track” feature provides detailed shipment updates in a very timely fashion. We have gained a variety of new efficiencies, including quicker customer updates and a reduction of paper flow sheets. Summer 2013 Q Forward Magazine 37 Member News OAG Cargo to provide comprehensive flight schedules data to the Worldwide Information Network (WIN) forwarder electronic communications platform OAG Cargo, the market leader for air cargo data solutions, is to provide flight schedules data for the Worldwide Information Network (WIN) – a cloud-based e-communications platform for independent freight forwarders, giving WIN members immediate online access to more than 700,000 direct and connecting flights worldwide. Under the agreement between OAG Cargo and WIN, the flight schedules data will be available right from within the WIN platform. OAG Cargo announced the new partnership on the first day of the 5th WCA Family Conference Week, taking place in Bangkok, Thailand from 7 to 10 March, where the company is participating. Part of WCA Family Conference Week, the networking event has attracted more than 2,400 independent freight forwarders. Grams Joins Benesch as PartnerIn-Charge of Shanghai Office Speaking from the show, Executive Vice President of OAG Cargo, Alv Hill, said: “This deal is a significant development for WIN members as it allows small and medium sized freight forwarders to effectively compete with larger companies that have broad access to similar data. Benesch is pleased to announce that Richard Grams has joined Benesch as Partner-in-Charge of the firm’s Shanghai office. He will be practicing in the firm’s Corporate & Securities Practice Group and will serve as Co-Chair of the China Practice. “Our product also saves valuable time through its simplicity and ease in finding the best flight and route for any consignment,” Hill added. As a longtime resident of Hong Kong and Mainland China with many years of experience advising senior management, business owners and private equity funds, Richard understands the needs and challenges of foreign businesses operating in China today. Richard routinely advises local and international clients on crossborder investments, mergers and acquisitions and reorganizations in China and Hong Kong, across a range of industries including OAG Cargo’s flight schedules data is due to go live on the WIN platform later this year. John DeBenedette, Worldwide Information Network’s Managing Director said: “Empowering independent forwarders with broad reach in terms of connectivity and the latest tools to enhance their airfreight operations is a priority for WIN in 2013. The addition of OAG flight schedules is an important strategic step towards achieving our goals.” private equity financings of investee companies; franchising and IP licensing; and matters involving insolvency, employment, anticorruption, and internal forensic/fraud investigations. Over the ICAT Logistics, Inc.(ICAT), a leading agency-based freight forwarder in the U.S., celebrates 20 years in business in 2013 and announces today that ICAT’s Vice President of Finance, Jim Vespa, and Vice President of Global Operations, Keith Buford, have been selected as winners in Baltimore SmartCEO Magazine’s 2013 Executive Management Awards program. The 2013 Executive Management award recognizes chief executives’ creative management vision, leadership philosophy, innovative strategy and undeniable work ethic. Vespa and Buford will be honored with the rest of this year’s winners at an awards ceremony on March 7, 2013 at the Doubletree by Hilton, Baltimore North-Pikesville. Over the past 20 years, ICAT has continually diversified its business model to offer value-added services and “lessons learned” to its agency owners through the Agency Partner Program. ICAT relies on its executive team to go above and beyond expectations and provide their expertise in order to accomplish the company’s goals: continuing to grow the Agency Partner Program and deepens its international footprint. To do so, ICAT recently opened an office in Miami “Entrepreneurship and quality to support its expansion into the Latin service as a relentless goal will American market. ICAT Miami will be added keep ICAT a leader that others to the other 16 Agency Partner offices across admire. Vespa and Buford have the nation. been instrumental in ICAT’s growth as well as establishing a vision for the company and setting goals for the future.” “All too often, senior leaders in an organization become unsung heroes. This is why SmartCEO designed the Executive Management Awards. The 2013 EMA winners are not only taking their companies and co-workers to new heights, but they are also leaders within the communities where we work and live,” says Craig Burris, founder and president of SmartCEO Magazine, “We are honored to award each of these individuals and tell the stories of their achievements and contributions.” years, Richard has been instrumental in establishing more than 200 corporate operations in China. Richard is licensed to practice law in Hong Kong and England and is fluent in Mandarin Chinese and English. Richard received his B.A. in Canada (from the University of Saskatchewan) before relocating to Hong Kong in 1987. He received his LL.B. (Honors, First Class) in 1998 and a Certificate of Laws in 1999 all from the University of Hong Kong. Additionally, Richard attended the Judge Business School’s Partner Development Programme at Cambridge University. Forward Magazine Q Summer 2013 The leading agency-based freight forwarder reaches milestone and congratulates members of executive team on recent award wins “I recognize that to grow we need to lead competition with innovation and a skilled staff,” says ICAT President and CEO, Rick Campbell. “Entrepreneurship and quality service as a relentless goal will keep ICAT a leader that others admire. Vespa and Buford have been instrumental in ICAT’s growth as well as establishing a vision for the company and setting goals for the future.” distribution and retail, aerospace, health care, specialty chemicals, franchising and financial services. He is also recognized as having significant experience with corporate finance, especially 38 ICAT Logistics Celebrates 20 Years in Business and Excellence in Executive Management The 2013 Executive Management award winners collectively generate $1.32 billion in annual revenue and employ over 4,600 individuals in Greater Baltimore. ICAT and the other winners will be featured in the March issue of Baltimore SmartCEO Magazine. Airforwarders Association airforwarders.org TransGroup Goes Mobile TransGroup Worldwide Logistics has recently launched its own Mobile App for both Android and Apple devices. The free App, developed in-house by TransGroup, is a unique approach to logistics management mobility. The launch of the app features two tools: TranStatus - an on-demand global tracking platform, and TransTMS – an integrated transportation management system that allows users to instantly retrieve quotes for LTL/Air shipments anywhere in North America. The App, available in both Google Play and iTunes, also features office listings and contact information to any of TransGroup’s 90 locations around the world. Already TransGroup plans to offer free updates in the near future with the additions of TransTracker – a comprehensive P.O/shipment tracking tool, and TranShipper – a global shipment initiation platform. With the TransGroup App, users will receive quotes, book shipments and track their freight, all from their mobile device – anywhere in the world. Learn more by visiting http://app.transgroup.com Summer 2013 Q Forward Magazine 39 Member News different freight management systems. Now all a forwarder needs to do is to get connected to WIN once to allow full connectivity to any other forwarder whatever IT system they use, or even through an easy to use web interface. Aike Höfft, Head of Forwarder & Global Distribution Services, CHAMP Cargosystems adds: “CHAMP Cargosystems has been at the cutting edge of information exchange within the air cargo community for over 20 years, actively driving and supporting industry change. CHAMP’s community integration platform Traxon cargoHUB acts as an open, extendable and rules based “industry service bus”. It simplifies transmission, conversion and distribution of messages, and expands the scope of information sharing within the air logistics community. Luxembourg, April 2013 - WIN is the world’s first and only solution that provides all freight forwarders with not only full agent-to-agent e-connectivity, but also full agent-to-ocean carrier and, from June 2013, agent-to-air carrier electronic transmission of all data. The partnership between WIN and CHAMP’s Traxon cargoHUB connects the largest community of independent forwarders worldwide with the broadest range of airlines, rapidly and securely. It is a major step forward for small-and-medium-sized forwarders to become e-freight-enabled, support the e-AWB initiative and further automate processes. It allows the seamless transmission of standardised messages such as MAWBs, HAWBs, status information, availability and booking requests. The integration was jointly announced to the world’s largest gathering of independent freight forwarding companies at the recent WCA Family Annual Conference Week in Bangkok. WCA membership encompasses 4,807 freight forwarder offices in 189 countries and WIN has been embraced by the network as the ideal solution to the SME sector’s urgent requirement for a significant leap forward in e-connectivity. The ground-breaking solution was also revealed to the global air cargo community at the World Cargo Symposium in Doha, where John DeBenedette, Managing Director of WIN, said that the uptake for WIN was exceeding all expectations and that, thanks to the integration with Traxon cargoHUB, SME forwarders now had electronic connectivity across the supply chain. He added that: “Although small- and medium-sized forwarders offer their customers many advantages over the multinationals, they still lack the sort of IT connectivity their larger competitors take for granted. This new connection between WIN and CHAMP’s Traxon cargoHUB levels the playing field and, in fact, sets the stage for the independents to leap ahead. Users will rapidly benefit from efficiency gains, cost savings and an increase in service quality”. Thanks to global freight forwarding networks, SME forwarders work with partner agents around the world so global reach is not a problem, however their partners often use completely 40 Forward Magazine Q Summer 2013 Global 3PL experiences annual growth in overall revenue and branch offices Dachser Transport of America Inc. (Dachser USA), the U.S. division of one of the world's leading global logistics service providers, announced that parent company Dachser recorded new record highs for overall revenue and employees in 2012. In 2012, Dachser increased group revenue to EUR 4.41 billion, which is 3.7 percent higher than 2011 (EUR 4.254 billion). The company handled 49.8 million shipments weighing a total of 37.5 million tons. By the end of the fiscal year, the number of company-owned branch offices worldwide rose to 347, including 21,650 staff members worldwide. For 2013, Dachser anticipates continued growth with the acquisitions of the Spanish logistics providers Azkar and Transunion. Including revenues from these acquisitions and expected organic growth, Dachser aims to surpass the 5-billion-euro revenue threshold for the first time in the current fiscal year. Increased capital investment With capital investment totaling EUR 148 million, Dachser continued to strengthen its logistics network last year and thus laid the foundation for further growth. Unique partnership raises forwarderairline connectivity to the next level CHAMP Cargosystems and Worldwide Information Network (WIN) have announced the integration of WIN 3.0 with CHAMP’s leading Traxon cargoHUB platform. This allows the world’s entire community of independent freight forwarders to connect electronically and directly to over 100 airlines and to access a wide range of mature e-cargo enabling services. Dachser on Course for Exceeding Revenue of Five Billion Euros Commodity Forwarders Inc. Honolulu officially launched the grand opening of its new facility CFI-HNL relocated to a new 25,000 square foot facility early in 2013. The new facility consists of new coolers for produce, seafood, a freezer, a refrigerated handling area and added dock doors. “Our new state of the art warehouse should set us apart on the islands”, commented Alfred Kuehlewind, founder and CEO of CFI at the opening event. Commodity Forwarders is a perishable focused freight forwarding and distribution service provider with four offices in the State of Hawaii, locations near airports in Alaska, Washington, Florida, New York, Illinois and assorted agent locations within the US as well as overseas. Airforwarders Association "Many of our customers experienced 2012 as an economically extremely unstable year. The economic slowdown in Europe in the second half of the year was exacerbated by a weakening on the air freight routes to and from Asia," summarizes Bernhard Simon, head of the Dachser management board. "Against this background we succeeded in consolidating the organic growth of the previous years and maintained our stable position on the market. As a family enterprise that takes a long-term approach to planning, we adopted a counter-cyclical approach in 2012 and increased our capital investment by around 10 percent." Revenues of the Dachser business fields Dachser's largest business field, European Logistics, contributed to the group's revenue in 2012 with EUR 2.661 billion (previous year EUR 2.625 billion) closing the fiscal year with a slight growth of 1.4 percent. Dachser Food Logistics raised its revenues by 13.2 percent to EUR 573 million (from EUR 506 million in 2011) and once again proved to be a stabilizing factor independent of the economic fluctuations. The Dachser Air & Sea Logistics business field generated EUR 1.305 billion, realizing a growth in revenues of 7.4 percent. With Malaysia and Vietnam, the Air & Sea Logistics business field added two new Asian locations to the Dachser network. Outlook 2013 Dachser plans to continue to invest substantially in the expansion of its European and intercontinental network in the 2013 financial year. "In particular our Iberian acquisitions Azkar and Transunion are currently providing new momentum and growth stimuli," Bernhard Simon explains. The air and sea freight forwarder Transunion extends the network with additional locations in Turkey, Argentina and Peru. Boosted by the organic growth anticipated in 2013, as well as the consolidated revenues of Azkar and Transunion, Dachser hopes to exceed revenue of five billion euros for the first time in 2013. "The integration of Azkar and Transunion is making rapid progress. The motivation of the local teams to become a value-enhancing part of Dachser is extremely high," Bernhard Simon is keen to point out. "Hence we have kicked off the new year with a healthy new sense of dynamism and enthusiasm." airforwarders.org TransGroup Ships Air via Air With the advent of bottled water, many speculated that one day plain old air would also become a commodity. While most would think that absurd, TransGroup Worldwide Logistics has been shipping bottled air, via air freight to all corners of the world. TransGroup’s Denver office is working with the National Oceanic and Atmospheric Administration (NOAA) by shipping aluminum canisters of air that are sampled from a forest just off the Continental Divide near Nederland, Colorado at an altitude of over 10,000 ft. These atmospheric samples are collected and pressurized with precise measurements of carbon dioxide, methane, or nitrous oxide and then tested and packaged at the NOAA lab, which has been designated by the United Nations World Meteorological Organization as the Central Calibration Laboratory for greenhouse-gas measurements worldwide. TransGroup picks up the canisters in Boulder, Colorado and prepares the hazmat documentation and bill of lading. In 2013, TransGroup expects to ship many more canisters to facilities all over the world, where the air samples are used to help calibrate machines that measure pollution in the atmosphere. Summer 2013 Q Forward Magazine 41 Member News United Cargo Prepares to Reintroduce 787 Service United Airlines is preparing to reintroduce Boeing 787 Dreamliner flights, bringing back the world's most advanced and efficient aircraft on domestic and international routes. L-3 Security & Detection Systems – Air Cargo Security Screening that Keeps Commerce Moving There is no down time in today’s global economy. As a major detection vendor, L-3 Security & Detection Systems (SDS) understands that air cargo screening requires reliability and maximum up time. Providing quality products, a global service network spanning 60 countries, a 24/7 call center and more than 170 in-house technicians near major U.S. airports, L-3 SDS keeps commerce moving. Its field service team can be at your site within a few short hours of your call. L-3 SDS has more than 30 years in the security detection industry and many of its customers have had their X-ray system in use for over 10 years. With the largest service organization in the industry, its technicians will be on-site with your team to provide operational training and make sure everything is right from day one. L-3 stands behind its products with a best-in-class warranty and offers competitive service contracts that allow for predictable operating expenses. Proper planning and the total solution is where L-3 SDS excels. When it comes to screening air cargo L-3 SDS knows you have choices. With today’s low interest rates the company understands that some customers need a competitive lease or finance option and is able to customize a solution that fits your budget. L-3 Security & Detection Systems products can be networked together for monitoring and reporting needs. The company has TSA, DfT and Transport Canada-qualified dual-view air cargo systems for skid, pallet and break-bulk screening. The large-tunnel screening systems for skid and pallet offer high-powered, superior performance for organics and other dense commodities. The medium-tunnel for break bulk screening offers flexible high-performance for non-palletized freight. To learn more about L-3’s PX™15.17, the PX™18.18 and the PX™10.10 and all of its air cargo products, please visit the website at www.L-3com.com/sds. 42 Forward Magazine Q Summer 2013 "Our customers responded extremely well when we introduced the 787, and we know they'll welcome it back," said Pete McDonald, United's Chief Operations Officer. "Boeing and the FAA were diligent in their work to fix the battery issue, and now the Dreamliner is poised to fly the missions we planned and provide our customers the features and reliability they want on their long-haul flights." Boeing has already converted two of United's six Dreamliners to the new FAA standards and will soon convert the remainder of United's fleet. United has scheduled flights to begin May 20 on routes from Houston to other domestic hubs. United will begin international 787 flying on the Denver-Tokyo route June 10. "United Cargo customers are very impressed by the unique size and range opportunities of the 787," said Robbie Anderson, President, United Cargo. "The Denver-Tokyo flight is a perfect example of the type of market made feasible by the 787 - a market no one else is serving with nonstop flights. We're very excited about the new widebody routes the 787 will make available to our customers." Another benefit of the 787 aircraft: it accepts the same container types as the popular Boeing 777 to facilitate seamless load planning for United Cargo's shippers. Operators of the 787 have garnered impressive cargo payloads exceeding 15 tons per flight on longrange routes. Airforwarders Association CargoWise Cloud Delivery Keeps Business Lean and Agile WiseCloud for ediEnterprise fuels ACS Logistics’ rapid and ambitious expansion plans CargoWise®, a global leader in technology solutions for logistics service providers (LSPs), announced Austrian-headquartered freight forwarder ACS Logistics is adopting ediEnterprise, delivered through the WiseCloud hosting platform to form a strategic pillar of the company’s ambitious expansion plans. Founded in 2011, and managed by industry veterans Gerald Kleeberger, Ulrich Hartwig and Thomas Sticht, ACS Logistics is one of few remaining independent LSPs with a range of specializations, including global air and ocean freight, as well as offering integrated logistics solutions in Austria. Having embarked on its first significant expansion in January 2013, ACS Logistics is now focussing on the development of non-physical services to enrich their core products and provide additional value to customers. According to Sticht, ediEnterprise has become a strategic and technological parter to ACS Logistics, as the flexibility and sophistication of the software will enable the company to continue to expand rapidly while controlling costs. “We see ourselves as a ‘next generation’ LSP capable of applying the most advanced technologies in order to run a truly lean organization,” says Sticht. “ediEnterprise, delivered through WiseCloud, offers the highest possible levels of service and flexibility which is why it was the perfect technology for us to adopt. After completing a comprehensive analysis of the different technologies on the market, I’ve become convinced ediEnterprise is the most advanced and powerful logistics software available because it is a deeply integrated solution, in which different modules can be activated at any time.” Describing Sticht’s approach to business as highly ambitious, structured and strategic, Simon Clark, Vice President of Business Development – Europe for CargoWise, says he’s delighted to be able to provide ACS Logistics with the technology the company needs to expand rapidly while holding onto a lean and flexible operation. “As a young and fast growing company, ACS Logistics needed software that worked from the word go so it could quickly bring on new divisions and expand,” says Clark. “ediEnterprise through WiseCloud will provide them exactly the kind of platform for growth they need. It’s great to see a customer who understands the power of doing business in the cloud, and who is willing to make the most of sophisticated technology.” Kuehne + Nagel implements CHAMP’s Cargo-XML ACAS solution The global logistics service provider Kuehne + Nagel (K+N) is pro-actively filing all air cargo shipments bound for the USA according to ACAS dual filing requirements as part of its quality airfreight services. On receipt of a shipment order the airfreight department transmits the House Air Waybill data to the U.S. Customs and Border Protection (CBP) to launch enhanced screening prior loading. When K+N receives the ACAS response (PSN) the company proceeds with consolidation and delivery to the air carrier. If there are problems with the shipment the logistics services provider is able to solve these pro-actively before tendering the shipment to the carrier. K+N has opted for a CHAMP application to facilitate the message exchange with the US CBP. The solution transmits IATA C/ XML messages (XFZB) directly from K+N’s enterprise system to US CBP without airforwarders.org manual intervention thereby optimizing data quality. It also transmits the CBP response messages back to K+N. “Kuehne + Nagel participates in the ACAS dual filing project to detect high risk shipments and customs clearance problems as early as possible in the supply chain process. We feel it is our duty to solve any problems that might arise from a product, supplier or recipient pro-actively for our customers as quickly as possible after receiving their orders“, explains Michael Weber, Vice President Interfaces and Processes, Air Logistics, Kuehne + Nagel Management AG. “We are proud that we have been able to expand our cooperation with K+N, one of the leading global logistics players”, says Rene E. Kircil, Senior Area Manager Sales at CHAMP Cargosystems. „CHAMP Cargosystems is well known for its premium messaging services for airlines and for its e-customs solutions. However, it is also offering similar applications (meeting IATA Cargo-IMP and XML standards) that are tailored to the needs of freight forwarders. K+N has opted for IATA Cargo-XML as it better facilitates the implementation and adoption of e-cargo initiatives such as the electronic Air Waybill (e-AWB) or e-freight. It also aids compliance to customs and security requirements by giving more flexibility in providing complete data elements.” “Our Air AMS and ACAS messaging services enable logistics services providers to give a better service to their customers, to improve supply chain visibility and control over their data, to speed up transport processes and avoid shipments being held up on arrival in the USA”, adds James Fernandez, VP Global Commercial Operations at CHAMP Cargosystems. Summer 2013 Q Forward Magazine 43 Member News United Cargo Expands Leading TempControl Service Network United Cargo, one of the world's largest belly carriers, announced it has expanded its service for temperature-sensitive shipments by adding nine new cities to its worldwide TempControl network. This increases the number of locations offering United Cargo TempControl service to 37. The following new U.S. locations are now certified to transport TempControl: Hartsfield-Jackson Atlanta International Airport (ATL), Boston Logan International Airport (BOS) and New York John F. Kennedy International Airport (JFK)** Trucking is available for temperaturesensitive shipments to and from these cities and Newark Liberty International Airport (EWR) and Washington Dulles International Airport (IAD), enabling connections to UA's unparalleled global widebody network. Transport of Envirotainer CLD containers is available on narrowbody aircraft to and from ATL, BOS and JFK for small shipments of temperature-sensitive goods. Cleveland Hopkins International Airport (CLE)** Trucking is available for temperature-sensitive shipments to and from CLE and Chicago O'Hare International Airport (ORD), EWR and IAD, enabling connections to UA's global widebody network. Honolulu International Airport (HNL) TempControl service is available on daily widebody service to and from Houston Intercontinental Airport (IAH), Narita International Airport (NRT), San Francisco International Airport (SFO), EWR, ORD and IAD. Access to additional cities is provided via connections through these hubs. 44 Transport of Envirotainer CLD containers is available on narrowbody aircraft to and from ATL, BOS and JFK for small shipments of temperature-sensitive goods. on the ground. TempControl shipments may be transported in Envirotainer or CSafe containers or as passive pre-packaged shipments. Seattle-Tacoma International Airport (SEA)** TempControl service is available on daily widebody flights to and from NRT, with access to additional cities via connection in NRT. Trucking is available for temperature-sensitive shipments to SFO, enabling connections to UA's global widebody network. Giant Crocodile Transported to Toledo Grand Aire has arranged air charters over the years for business owners, Hollywood celebrities, famous musicians, politicians and exotic creatures but this is the first time the company has ever handled a "croc star"! The Toledo Zoo asked the charter experts at Toledo-based Grand Aire to arrange the final leg of the charter after a long flight on Qantas Air from Australia. A large specially made crate was used to transport the creature and he was escorted for the entire thirty-four hour journey by an animal expert from Australia. The following new international locations are now certified to transport TempControl: Manchester Airport (MAN) Manchester, England** Trucking is available for temperature-sensitive shipments to and from London Heathrow International Airport (LHR) enabling connections to UA's global widebody network. Transport of Envirotainer CLD containers is also available on narrowbody aircraft to and from MAN for small shipments of temperature-sensitive goods to IAD and EWR. Milano Malpensa Airport (MXP) Milan, Italy TempControl service is available on daily widebody service to and from EWR, enabling connections to UA's global widebody network. Istanbul Atatürk Airport (IST) Istanbul, Turkey+ TempControl service is available on daily widebody service to and from EWR, enabling connections to UA's global widebody network. ** Trucking transportation to or from these cities may require temperature-controlled trucking arrangements. Information is available from United Cargo Sales Representatives. + Istanbul is certified to handle TempControl shipments in CSafe RKN containers only. All TempControl shipments are processed using customized Standard Operating Procedures with minimized tarmac time and dedicated handling by specially-trained staff to safeguard shipments in the air and Forward Magazine Q Summer 2013 After clearing U.S. Customs in Dallas, the reptile arrived at the Grand Aire FBO at Toledo Express Airport and was gently offloaded from a temperature-controlled Convair 5800 cargo plane. He is believed to be the largest saltwater crocodile in North America and quite possibly in the Western Hemisphere. Zachary Cheema, President of Grand Aire, personally worked the large forklift to offload the extra-large crate from the plane to the awaiting environmentally-controlled straight truck for the final few miles to the Toledo Zoo. Baru is now getting used to his new home and will make his first public appearance on May 24th. Despite his enormous size, Baru isn't the largest living creature that Grand Aire has flown. Several years ago, the company was hired to transport a killer whale on a B-747. About Grand Aire, Inc. Grand Aire Inc, based in Swanton, Ohio, is one of the top freight and passenger air charter providers in North America and also provides air freight and expedited trucking services. Founded in 1985, the company is privately owned and operated by the Cheema family. Grand Aire manages a network of thousands of charter aircraft and ground transportation vehicles stationed around the world. The company has earned a reputation as one of the most professional Airforwarders Association and responsive logistics providers in the on-demand charter business and serves many of the top logistics professionals, government agencies and manufacturing companies around the country. Grand Aire also serves the medical community with the transportation of organs, tissues and surgical teams. The company operates the only 24/7 full-service FBO at Toledo Express Airport offering cargo handling, fueling, de-icing and other services to all types of aircraft. Grand Aire, Inc is certified as a minority and servicedisabled veteran-owned small business. Dachser USA Announces Expanded Service Offerings in Miami Dachser Transport of America Inc. (Dachser USA), the U.S. division of one of the world's leading global logistics service providers, announced new enhanced service offerings designed to keep clients more competitive in the South Florida market and Latin America hubs. Dachser Miami has opened a Bonded Container Freight Station, I.B.E.C. and Bonded Warehouse, the first of its kind for Dachser USA. These new services are situated at the company's Miami facility 8861 NW 18th Terrace and allow Dachser to be more competitive in the market by offering additional capabilities to its network and customers. An experienced on-site staff will utilize Dachser comprehensive service offerings to handle import deconsolidations, combine domestic cargo with in-bond cargo for the loading of export ocean containers, and make bonded warehouse entry for the handling of in-bond cargo. With the rollout of the Export Gateway in Miami, Dachser will now offer in-transit deconsolidation and onforwarding services by combining the in-transit cargo with existing export consolidation cargo throughout the world, specifically, Latin American markets. airforwarders.org ICAT Logistics Appoints New Vice President of International Operations to Maximize International Presence, Grow Global Footprint ICAT Logistics, Inc. (ICAT), a leading agency-based freight forwarder in the U.S. that is celebrating its 20th year in business in 2013, announced that it has appointed Ann Bruno as its new Vice President of International Operations. Ann brings more than twenty five years of expertise in global commerce and international transportation management to the position, with specialized knowledge in the areas of transportation and international government regulatory compliance. These areas are critical components to the achievement of ICAT’s current goals to expand its international footprint going forward. In her new role, Ann will be responsible for a number of priorities in continuing to grow ICAT’s presence in key international markets, including Europe; Asia; and South America, and focused on: • Expanding the company’s client base; • Increasing the breadth of its expertise in compliance and regulatory issues; • Maximizing its existing agency memberships and global relationships; and • Coordinating international efforts amongst ICAT’s various stations to enhance and streamline training and support activities. “We are thrilled to welcome Ann Bruno to ICAT as our new Vice President of International Operations,” says ICAT President and CEO, Rick Campbell. “Her success, expertise, and entrepreneurial approach to leadership and growth make her an ideal fit for our team. She is also a dynamic force to propel our global expansion and growth efforts forward in the future.” Prior to joining ICAT, Ann held several positions at TBB, including most recently acting as their Vice President of Global Trade. Prior to joining TBB, Ann founded Olimpex International, a successful international ocean and air freight forwarder as well as a U.S. Customs House Broker. After a successful twenty years in business, Ann sold Olimpex to TBB in October, 2004. Following her graduation from Georgetown University, Ann spent several years living overseas, and worked for a number of global trade enterprises, including American Export Group and Horizon Trading. Ann is also a licensed Customs House Broker, and is fluent in French as well as conversational in German and Dutch. “I am excited to join the award-winning ICAT team,” Ann Bruno states. “I have long been aware of ICAT’s services and success, and I look forward to bringing my long track-record of international expertise, contacts, and knowledge of compliance issues to help the company reach new heights in expanding its global footprint and enhancing its current service offerings.” Airpack’s John Gerrish Receives Honors John Gerrish was honored to receive the James A. Russell Award at the NIPHLE Annual 2013 Conference in Williamsburg, Virginia. The James A. Russell Award is a very prestigious packaging industry recognition award provided by the National Institute of Packaging, Handling and Logistic Engineers. Each year the directors of NIPHLE recognize one individual that has made a significant contribution to the packaging industry. We are very proud of our founder and leader. Congratulations John! Summer 2013 Q Forward Magazine 45 Member News 130306 AirCargo Forward Ad HP.pdf 1 5/14/13 1:38 PM AGS Now Provides Importers with Integrated Solutions for Sourcing Products from Overseas with Import Purchase Order Management ALG Worldwide Logistics, LLC Expands Reverse Logistics Capabilities ALG Worldwide Logistics LLC, a leading full service transportation and logistics provider, expands their reverse logistics capabilities with the opening of a new 30,000 square foot facility located just outside Detroit, MI. Eric Hezinger, President, views this startup as a major opportunity to gain market share within the Reverse Logistics marketplace. He believes the market is in need of an entity to provide a “turn key” approach to reverse logistics on a national platform promoting competitive distribution and IT asset management optimization and consultation. Additionally, he projects this will significantly increase the ability to be more efficient in client response time as well as offer clients additional services to make educated decisions on the next logical step in the lifecycle of product. ALG’s resources and operational expertise provides a complete supply chain solution to their reverse logistics clients. Founded in 1982, ALG Worldwide Logistics LLC is a proven industry leader providing international and domestic transportation and logistics solutions to clients on a global basis. For more information about ALG Worldwide Logistics, please visit our website at www.algworldwide.com 46 CargoWise Sees Rapid Growth in Russia and Eastern Europe Russian Partner RBC Takes on More Staff in Response to Customer Wins CargoWise®, a global leader in technology solutions for logistics service providers (LSPs), announced a successful start to the distribution partnership with ERP specialists RBC Group that began in January this year. With several new customers already signed in Russia and Ukraine, RBC is planning to double the number of staff dedicated to the CargoWise account within the quarter. “The Eastern European logistics sector is becoming increasingly competitive, and companies operating in this field are actively seeking international experience and sophisticated technology,” says Maks Porfyrenko, Key Account Manager for RBC Group. “As a result, we are winning business with the ediEnterprise system from CargoWise. This strong and functional platform is already having a significantly positive impact on the way the logistics service providers operate in this region.” Customers are attracted to the ediEnterprise platform because it simplifies logistics operations and bookkeeping as well as improving communication with agents around the world, which in turn, allows our customers to boost their own customer service in existing markets and expand into new geographical regions In the past three months alone, RBC has signed a number of new customers, including Russian-based TGL, Ukrainian door-to-door logistics specialists Olimpac, and warehousing and transport specialists EuroExpress Mail. “Customers are attracted to the ediEnterprise platform because it simplifies logistics operations and bookkeeping as well as improving communication with agents around the world, which in turn, allows our customers to boost their own customer service in existing markets and expand into new geographical regions,” Porfyrenko says. “As a result of the demand, we are planning to increase the number of sales and technical staff we have dedicated to selling the ediEnterprise platform in Russia and neighbouring countries.” CargoWise VP Partner Management, Volodya Bilanovsky, says RBC Group’s success reflects the level of demand for the world-class logistics platform in local markets, pointing out that regional companies stand to benefit from the productivity gains and improved communications with their global partners, while existing transnationals can use ediEnterprise to gain more insight into their Eastern European operations. “By offering ediEnterprise in this part of the world, RBC Group is opening up huge opportunities for local and international players,” Bilanovsky says. “This success in Eastern Europe highlights the strength of the CargoWise platform as the only truly global ERP level solution for the industry.” Forward Magazine Q Summer 2013 Airforwarders Association Sourcing products from overseas vendors involves many operational processes performed by many different parties, including the shipper, consignee, forwarders, customs brokers, air and ocean carriers and others. The interaction and interrelation of the process makes the entire supply chain complicated, especially when many of the parties are on the other side of the globe. AGS has years of experience in providing importers with integrated solutions that resolve these issues and provide a high level of control and visibility to the import supply chain. “Our programs are highly personalized to specific customer requirements, developed by a joint AGS and customer design effort, with the goal of improving the customers overall business performance”, says Bernard Founded in 1958, AGS Quandt, Director of provides a full range International Sales at AGS. of transportation, logistics and supply chain management services worldwide. It has 125+ offices in North America and provides air, ocean and ground services to, from and within 196 countries. Some of the new AGS Import Purchasing Order Management program highlights include the assignment of a development team to work with the customer, providing doorto-door transportation from overseas vendors to the end customer in the U.S., long standing relationships with dozens of air and ocean carriers to provide reliable and cost competitive service and domestic transportation services from any U.S. gateway including air freight or small package, expedited ground and truck load. AGS also provides comprehensive brokerage service to clear your import shipments through customs and the ability to provide customers with complete visibility of all incoming shipments by purchase order, sales number or other customer reference. The program is an end-to-end solution with AGS managing the entire supply chain process! Founded in 1958, AGS provides a full range of transportation, logistics and supply chain management services worldwide. It has 125+ offices in North America and provides air, ocean and ground services to, from and within 196 countries. For more information on AGS’ full menu of services, visit us online at www.agsystems.com or email us for a quote at [email protected]. airforwarders.org Summer 2013 Q Forward Magazine 47 Member News First Time Members Can Join now for AfA is a non-profit industry association of, by, and for the air forwarder industry. Our mission is to promote and advance the common interests of those engaged in the air forwarder industry throughout the United States and abroad. Through industry meetings and educational seminars AfA provides an excellent opportunity to network with others in the business and stay on top of industry trends. * Good through December 31, 2013. Regular dues schedule applies thereafter. To join AfA, please visit our website, www.airforwarders.org AfA, 529 14th Street, NW, Suite 750 Washington, D.C. 20045 Tel (202) 591-2456 48 Descartes Acquires ScandinaviaBased KSD Software ediEnterprise in WiseCloud Boosts Efficiency Across Scandinavia Adds Robust Scandinavian Logistics Community and Leading EU Electronic Customs Filing Solutions CargoWise®, a global leader in technology solutions for logistics service providers (LSPs), has announced the successful adoption of ediEnterprise delivered through the WiseCloud application by Swedish logistics specialists Buyers Logistics Scandinavia AB. Security and reliability key drivers for adoption of WiseCloud Descartes Systems Group (TSX:DSG) (Nasdaq:DSGX), the global leader in uniting logisticsintensive businesses in commerce, acquired KSD Software Norway AS (“KSD”), a leading Scandinavia-based provider of electronic customs filing solutions for the European Union (“EU”). The EU customs compliance market is characterized by a complex framework of member states; each with different regulations, languages, and systems. Transportation carriers, logistics intermediaries and shippers have looked to technology partners, like Descartes and KSD, to help them manage this complexity. “EU customs compliance is complex,” said Svenn Widerberg, CEO of KSD. “Our focus is to make the process easier for customers so that they can instead focus on their core businesses. Like us, Descartes is focused on delivering results to customers, and this made a “With approximately USD $10 combination with Descartes a logical choice million of annual recurring for our customers. We’re thrilled that our revenues that are core to our customers will now have access to even more combined businesses, KSD adds solutions and global logistics participants to scale for Descartes to serve the help them become more efficient.” wider logistics community,” said Edward Ryan, Chief Commercial Officer at Descartes. KSD brings more than 1,300 customers to Descartes’ Global Logistic Network, with the majority of these companies based in Scandinavia. KSD provides its customers with customs declaration, security filing, transportation management and freight forwarding technology solutions. By combining KSD’s leading EU customs solutions and Descartes’ global community of logistics participants and shipment management solutions, customers now have a single trusted partner to help them manage their shipments across the globe. According to IT Manager Martin Selfors, the decision to transfer the company’s key data into WiseCloud was challenging, however, the extensive cost and time savings associated with running ediEnterprise in the cloud outweighed any concerns. “The decision to choose hosted software was not easy; time is crucial in our industry, and if our system was to go down we might lose a potential business opportunity,” said Selfors. “Relying entirely on service and uptime from a third-party provider was considered a big risk; but after our evaluation, we found out that the benefits of WiseCloud far exceeded the drawbacks.” WiseCloud also facilitated Buyers Logistics’ capability to operate offices across Sweden, Denmark, Finland and Norway, all of which are now able to work together off a single database delivered through WiseCloud for ediEnterprise. said Selfors. “We can now offer the same capabilities as one of the bigger companies, but without letting go of the personal contact that many of our clients appreciate.” “The final decision was made when I went to Milton Keynes to have a look at the CargoWise data center. I was very impressed by the high level of security together with a confirmed uptime,” said Selfors. “By choosing WiseCloud, we could focus entirely on the system itself, rather than server installation and configuration. After all, we are in the forwarding business and not the IT business – let people do what they do best.” According to Steve Corbet, CargoWise Vice President of Business Development – Europe, Middle East and Africa, the implementation of CargoWise technology has aided the group to increase efficiency and streamline processes throughout geographically dispersed locations. Describing the benefits of ediEnterprise as “vast”, Selfors points to the capacity to operate from a single, hosted database, and the productivity enhancement associated with enabling staff in two different offices to access the data associated with a single shipment in a single file. “ediEnterprise has helped us in achieving a much higher level of service for our clients,” “Buyers Logistics quickly saw the benefits of using a single, hosted system and hit the ground running,” said Corbet. “They were very keen to advance efficiency across the group and they have been able to make a huge impact in a short period of time. Importantly, they have been able to pass on these time and cost saving benefits to their customers, adding to the already high standard of customer service they are renowned for.” “With approximately USD $10 million of annual recurring revenues that are core to our combined businesses, KSD adds scale for Descartes to serve the wider logistics community,” said Edward Ryan, Chief Commercial Officer at Descartes. “Our Global Logistics Network customers can enhance their own logistics operations with access to KSD’s broad Scandinavian community of logistics participants and EU compliance solutions. Similarly, we’re excited to be able to introduce Descartes’ shipment management portfolio to help KSD’s customers be even more efficient and profitable in their logistics operations.” KSD is headquartered in Oslo, Norway, with offices in Sweden, Denmark and The Netherlands. The all cash purchase price for the acquisition was NOK 190 million (approximately USD $33 million at May 2, 2013), with Descartes acquiring approximately NOK 11.5 million in working capital (approximately USD $2 million at May 2, 2013). To complete the acquisition, Descartes used approximately USD $13 million of cash on hand and $20 million from an acquisition line of credit. Forward Magazine Q Summer 2013 Airforwarders Association airforwarders.org Summer 2013 Q Forward Magazine 49 Member News AIT-Las Vegas Independent Contractor Lends Leadership, Know-How to Export Growth Program IAG Cargo Deploys Descartes Cloud-Based Air Freight Booking Portal Into iagcargo.com Descartes Systems Group (Nasdaq:DSGX) (TSX:DSG), the global leader in uniting logisticsintensive businesses in commerce, announced that IAG Cargo has extended its relationship to include air cargo booking through Descartes’ cloud-based Global Freight Exchange (GF-X) Private Label solution. Descartes’ solution will support iagcargo.com, the carrier’s electronic booking portal for freight forwarders of all sizes. IAG Cargo will provide the online booking service to its customers completely free of charge. Descartes’ GF-X is one of the largest electronic information and reservation systems in the airfreight industry. Airfreight carriers can distribute real-time product, routing, capacity and rate information to their forwarders worldwide. Airfreight forwarders can access carrier information, make electronic bookings and track shipments via a web browser, 24 hours a day, 7 days a week. The Descartes GF-X Private Label service is a unique way for carriers to deploy a robust electronic bookings channel without the higher costs and risks associated with in-house development, in a way that utilizes existing processes and interfaces to the Descartes GF-X Exchange. Descartes’ GF-X and Private Label solutions are part of Descartes' cloud-based Logistics Technology Platform. The Logistics Technology Platform uniquely combines the power of the Global Logistics Network, the world's most extensive multi-modal network, with the industry's broadest array of modular "We’ve been a long-time and interoperable web and wireless logistics applications. customer of Descartes, using the company’s air messaging and GF-X solution. Extending our relationship to include a privatelabel portal is a logical extension for IAG Cargo," said Angel Cabeza, Head of Distribution and IT Platform at IAG Cargo. "We’ve been a long-time customer of Descartes, using the company’s air messaging and GF-X solution. Extending our relationship to include a private-label portal is a logical extension for IAG Cargo," said Angel Cabeza, Head of Distribution and IT Platform at IAG Cargo. "Descartes' GF-X Private Label is a cost-effective and proven solution that allows us to deliver against our goal of providing outstanding levels of customer service in the industry. It will help us support our existing network of large freight forwarders and will also be highly beneficial in helping us target the SME market, which we see as being of great value over the coming years.” IAG Cargo customers use the private-label solution to book cargo through the iagcargo.com website and check booking options against their shipment needs. The system responds with details on available cargo capacity and rates. When a cargo reservation is made online through the IAG Cargo website, an electronic confirmation is delivered to the customer. Freight allocations can also be booked through iagcargo.com. "IAG Cargo’s operations span the globe," said Ed Ryan, Chief Commercial Officer at Descartes. "Our long-standing relationship has been predicated on helping IAG Cargo improve their service to their customers in a cost effective manner. We’re pleased to be able to extend our relationship to help them streamline and add greater value to their air cargo booking process with our proven on-demand solution." 50 Forward Magazine Q Summer 2013 AIT Worldwide Logistics Welcomes New Business Development Director to Support Flourishing Expansion in Asia As part of the company’s accelerating global proliferation, AIT Worldwide Logistics is pleased to announce the hiring of Myung Kim as Business Development Director. Kim comes to AIT from CEVA Logistics where he most recently held the position of Managing Director for Korea, then Singapore, leading more than 850 employees and generating annual revenues in excess of $140 million. He brings a wealth of specialized business development and operational expertise to his new role, particularly in the realm of trans-Pacific trade with Korean technology firms. AIT-Las Vegas Independent Contractor John Agustin continued to strengthen AIT’s reputation in the southern Nevada market by sharing his international shipping expertise as part of the ExporTech program sponsored by Nevada Industry Excellence. out over the span of three months with the purpose of helping businesses develop international growth plans. Each session features presentations, exercises and group discussions along with personal coaching that is even available in between sessions. Agustin was a presenter at a session held on the University of Nevada, Las Vegas campus where he guided attendees through an overview of how to make logistics choices before beginning to export their company’s goods. Next, he offered detailed explanations of Incoterms (International Commercial Terms) – pre-defined commercial terms published by the International Chamber of Commerce to help clearly communicate the tasks, costs and risks associated with international transportation and delivery of goods. After discussing the required documentation for international shipments, Agustin also covered tariffs, taxes and duties while presenting resources like export.gov to assist with navigating these matters. In addition to offering his informative presentation, Agustin is serving as a coach for one of the participating companies, helping them to do market research and assemble their overall export plan. He also sits on the panel that approves the final business plans turned in during the third session of the ExporTech program. The ExporTech program was created by the Manufacturing Extension Partnership and the U.S. Export Assistance Centers. It consists of three daylong sessions spread One of Agustin’s AIT-Las Vegas customers summed it up by saying, “This is why John is so respected in the Valley. He is a 'giver' to those around him, a mentor to many and a good friend to all. Awesome - as usual!” San Francisco Team Works the Phones for KQED Pledge Drive Hot off the heels of receiving their Station of the Year award at February’s National Diamond Meeting, co-workers from AIT-San Francisco made a unique contribution to their community when they participated as volunteers for KQED Public Television’s on-air fundraising drive. Decked out in their Shop AIT Gear, team members from Operations, International and Sales joined their station manager and worked the phones during a 6:45 to 10:30pm shift fielding calls from viewers making pledges. Based at AIT’s Los Angeles, California facility, Kim will leverage nearly 15 years of industry connections and experience as he manages direct sales efforts in southern California. He will also strengthen the company’s customer base by securing other east and southeast Asia-related opportunities across the United States. Afterwards, AIT-San Francisco’s station manager admitted the team was nervous at first, but quickly got the hang of it. “All in all our efforts were well received by the people we spoke with,” he said. “Many callers asked about AIT, what we did and thanked us for volunteering.” “It was really fun!” one AIT account executive added. “We got a lot of on-air face time during the pledge drive breaks with many of our co-workers seated right in the front row. The hosts also gave AIT special thanks at the end of our shift with our logo appearing in the credits.” In her letter to the AIT-San Francisco team, KQED’s Events & Volunteers Coordinator Julie Becker thanked them for helping with the drive and contributing to the station’s mission of providing Bay Area residents with high quality commercial free television programming. She added that the station raised nearly $17,000 during their shift and invited them to come back anytime. This new assignment marks the second time Kim and his family will make their home in the Los Angeles area; they previously resided in Seoul, South Korea. Airforwarders Association Agustin has been involved with Nevada Industry Excellence since its inception and he received their Provider of the Year award in 2010. The deputy director of Nevada Industry Excellence, Terry Culp, expressed his thanks for Agustin’s contribution, mentioning the positive comments received from the ExporTech attendees. A collection of video clips featuring shots of AIT-San Francisco’s team in action at the pledge drive can be found on AIT’s YouTube channel. airforwarders.org Summer 2013 Q Forward Magazine 51 Affinity Spotlight 3Plus Logistics Co. American Worldwide Agencies Baapni Global Logistics Private Limited CP Delivery DMC Logistics Dunavant Logistics Group, LLC Emerald Express LLC EnLog Strategic Services LLC FBR Capital Markets Fred Hall & Associates Inc. Freightmasters Logistics/Ground Freight Express FreightOS Ltd. Goldstar Couriers & Logistics Griley Air Freight Save the Date March 30-April 1, 2014 IJS Global International Air Cargo Association of Chicago Lonestar Delivery and Process New England Delivery Precision Logistics Group Primary Freight Services Prosperio Group Sippi Logistics Orlando World Center Marriott Transport Specialists of MS Inc. One of the premier resorts in Orlando near Trinity Logistics Disney World, boasting 10 restaurants/ World Class Jet Services lounges, golf, spa, and is a TripAdvisor Award winner. Stroll the beautiful 200 acres of this For more information on these and all AfA members, visit our membership directory at www.airforwarders.org beautiful resort, book a great game of golf at the championship Hawk’s Landing Golf Club and instructional academy, or perhaps a visit to the full-service spa. 52 Forward Magazine Q Summer 2013 Airforwarders Association airforwarders.org New Members Meet Our Newest Members! Summer 2013 Q Forward Magazine 53 Hundreds of new flights. One relentlessly reliable team. ® More flights. More destinations. More relentless reliability. Now that the Southwest Airlines® and AirTran® networks are connected, Cargo Customers have hundreds of new flight options to choose from for reliable shipping, including four new destinations: Charlotte, NC (CLT); Rochester, NY (ROC); Richmond, VA (RIC); and San Juan, PR (SJU). For information, visit swacargo.com/moreflights. Flights to/from Richmond, VA (RIC) are operated by AirTran. For shipments to/from San Juan, PR (SJU), only Next SM SM Flight Guaranteed (NFG) and FREIGHT service levels will be available. 54 Forward Magazine Q Summer 2013 Airforwarders Association airforwarders.org Summer 2013 Q Forward Magazine 55 Innovative efficient productivity. Simple integrated solutions. Cost Efficient | Increased Productivity | Innovative | Efficient TECHNOLOGY FOR TODAY & TOMORROW CargoWise products are the core of strategic information technology projects for leading freight forwarding companies. Our clients benefit from our worldwide expertise, and are supported by a global team that understands regional requirements. Constantly innovating, we seek to solve problems and discover new ways of working using information technology. CargoWise solutions are renowned for their next-generation software, ease-of-use and cost-efficiency. Our ediEnterprise solution is the industry’s only single-platform supply-chain logistics management system with global capability. CargoWise works closely with logistics service providers to deliver highly innovative business technology solutions. To find out more: [email protected] www.cargowise.com Airforwarders Association Ad.indd 1 2/8/2013 5:14:15 PM