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View from the top: Michael Steen

View from the top Saturday, 26 March 2011 15:30 Written by Lucy Siebert

 

Last year was a good one for the global air cargo industry but security and training remain priorities, says Michael Steen, chairman of The International Air Cargo Association (TIACA).

 

 

Factfile


Organisation:

 

The International Air Cargo Association

 


Headquarters:

 

Miami, USA      

 


Website:

 

www.tiaca.org

 


Year founded:

 

Its roots go back to 1960, officially registered as TIACA in 1994.

 

 


Members:

 

Over 400 companies



What are your main priorities for TIACA for the year?


I want to tap into the expertise of our board and members and continue to grow our membership globally. We want to continue to reinforce TIACA’s role as representing the entire air cargo chain to regulators and, as part of this, continue to develop our role in the new Global Air Cargo Advisory Group (GACAG) with our partners FIATA, IATA and the Global Shippers’ Forum.    


How was 2010 for the air cargo industry?


It was a year of recovery after 18 months of the most difficult economic conditions most of us can ever recall. For an industry that sits at the heart of world trade, the impact of recession hits air cargo very early in the cycle. Nonetheless, our members made prudent business decisions to get through the challenging late 2008/2009 period and the upturn in freight volumes from late 2009 and throughout 2010 brought much-needed stability and the chance to start to recover the losses of the previous period. We hope this can be sustained during 2011 and beyond. The global market is still fragile and difficult to predict but I believe we can be cautiously optimistic.    


What was the highlight and lowlight of 2010?


2010 was a good year for TIACA. As well as being one of the founders of GACAG and being chosen to facilitate the group, TIACA signed a new Memorandum of Understanding with the World Customs Organization (WCO) that will see us working closer together, and we continued to build a good working relationship with the Transportation Security Administration (TSA) in the US. In November, the association also brought over 3,300 industry leaders together at its biennial Air Cargo Forum & Exposition in Amsterdam, once again providing unique networking and business development opportunities. The lowlight was the attempted terrorist attacks using cargo shipments.


What impact did the foiled printer cartridge attack have on the air cargo industry?


It was a stark reminder of the challenges the aviation industry and regulatory 
authorities face today. Security underpins everything our members do in the air cargo supply chain and our industry’s track record demonstrates the effectiveness of this commitment. I would say two of the outcomes were positive in that it reinforced the need for the regulatory authorities to work with the industry to ensure all security is both effective and viable and, after some months of preparatory discussions, it brought forward the activities of the newly-formed GACAG


to ensure the industry has the strongest possible representative voice when dealing with industry affairs issues.    


What is the outlook for the air cargo industry in the year ahead?


I am optimistic about the prospects for the next 12 months, although political tensions in the Middle East and the impact this might have on oil prices is a concern. Similarly, the level of debt in major economies of the world and higher taxes will continue to affect consumer spending and that generally has a sizeable impact on the types of commodities moved by air.  


Who makes up your membership?


TIACA has always been unique in the air cargo industry in that it represents all aspects of the supply chain, from shippers and freight forwarders to airlines and airports, aircraft manufacturers, logistics service providers, courier and express businesses, integrators, general sales agents, ground handlers, technology and equipment providers, trucking companies, media etc.

TIACA is involved in training in various regions – why is this a priority?


We are placing renewed focus on training, especially in regions where we feel we can add most value. Developing well-trained, competent professionals is essential to the ongoing well-being of the industry. In February, TIACA joined forces with the Federation of East African Freight Forwarders’ Association (FEAFFA) in a training initiative for its members in Kenya, Uganda, Tanzania, Rwanda and Burundi. Developed for TIACA, the course covers supply chain management, transportation management, IT, e-commerce border control and processes, safety and security. We plan to extend this training to Nigeria and are also looking at how we can support the industry in China.


What is the Air Logistic Network?


As one of the TIACA membership benefits, the Air Logisitic Network (ALN) aims to make it easier for our members to network and develop business opportunities together. They have the ability to arrange one-to-one meetings via our online community and have access to a growing online reference centre with a variety of useful business tools, information and data.


What is your vision for the air cargo industry?


I want to see an industry that gains the recognition it deserves as a facilitator of world trade and a driver of global economic development.


How important are industry organisations such as TIACA?


TIACA is playing an increasingly important role. With security, for example, we are able to give the broadest insight of the needs of the industry and the challenges faced by all service providers, and it also means that when regulators talk to us – which is becoming more and more frequent – they get a complete industry view.


In what ways do you work with other industry organisations?


In the case of the TSA, we worked closely together to help inform the industry about new mandatory 100% cargo screening. With IATA, we are supporting its e-freight initiative to remove paper from the air cargo supply chain. We have also been asked for comment from groups including ICAO, European Civil Aviation Council, US Department of Homeland Security, US Federal Aviation Administration, the WCO, United Nations Conference on Trade and Development, World Bank and OECD. We also work with other important groups such as the European Shippers’ Council.


This issue appears in Routes News 2011 Issue 2

 

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