Shadows & Fog As TSA Mandate Looms
Dateline USA - No doubt about it the big immediate issue for air cargo in 2009 is air cargo screening. How to screen effectively while taking care to not shut down the flow of goods, many believe depends on how well the TSA’s Certified Cargo Screening Program (CCSP) works. But concern about equipment costs in a dreadful business climate has many in air cargo wondering why TSA is not taking a broader role in the screening of freight?
In case you missed it, all USA air cargo faces a mandated deadline in a little over three weeks on February 3 that will profoundly impact the way this industry operates in the future.
The U.S. Congress Homeland Security Bill that will eventually require 100% physical screening of all U.S. belly cargo by August 3, 2010, kicks off demanding 50% cargo screening by February 3, 2009.
While everybody in air cargo has agreed that the law demanding 100% screening will be tough, that problem is still better than a year and a half away.
However the actual problem is more severe on February 1st, 2009, rather than August 2010. Since consolidations and bundled pieces from shippers and forwarders must come loose on February 1st, 2009. This effort is extremely intense on handling increased loose pieces throughout the network
Mr. Klaus Holler, Vice President of the Americas for Lufthansa Cargo states, "On February 1st, 2009, the industry will change the way business has been conducted for decades. The removal of consolidations from the forwarder or the shipper that are not screened, will require loose handling at the air carrier. This impact will be felt worldwide as origin, transit and destination stations handle an increase in loose cargo. The way cargo is accepted on February 1st, will be the challenge, 100% screening will fall into place without issue if this initial challenge is surpassed.
"Our efforts and intensive coordination with our partners have focused on this challenge.
"Lufthansa Cargo stands ready to assist our partners and continue intensive discussions in order to find the most effective security and operational processes possible to meet the TSA and US Congressional law. Consequently, the challenge of screening at 100% begins February 1st, 2009."
Today in the here and now, many shippers and air forwarders and others as well wonder what the 50% screening mandate will have on the industry.
TSA created the Certified Cargo Screening Program (CCSP).
But CCSP is voluntary, leaving forwarders to somehow shoulder costs on their own.
If that sounds unbelievable, at least one airline is willing to endorse the idea.
"The disruption if they (forwarders) don't join the CCSP will cost supply chain participants far more than they will have to pay to be compliant," Dave Brooks, American Airlines Cargo President said, adding:
"The level of interest in the CCSP program has proven that the thinkers in the forwarding community are on board with the concept that they will always be better off if they can do their own screening.
"In fact, AA is training several CCSP participants on how to do their own air cargo screening here at our Flagship University near headquarters in Dallas.
"Those that complain - dare I say, whine, about the cost and why the government isn't paying for it ought to have spent more time hitting the bricks in Washington before the law was passed.
"The legislative debate is over; the TSA really has no control over the deadlines we are facing other than to shut us down if we are late."
But confusion cannot be ruled out as a prime driver as the deadline draws near and that has some industry watchers wary of worse case scenarios.
"I have spoken to our offices," said one medium sized forwarder who also said that "in this contentious atmosphere right now, what we get back is that in almost every city and airport there are conflicting instructions.
"There is no real telling just what will what will happen on February 3.
"In point of fact no one can predict with absolute certainty how the new rules will impact air cargo.
"Air cargo companies still need to think about smart and cost-efficient solutions and there are options
"Companies can collaborate by pooling their shipments for screening at a number of airports or have shippers, cargo terminals or even the airlines achieve the mandated directives.
"There is one question that so far has not been answered," said another forwarder source.
"Why doesn’t the TSA perform screening, just as the agency does with screening of luggage and passengers?
"No matter who does the screening, the liability issue should a catastrophic incident occur is unresolved.
"The best way to insure workable global air cargo security is for everyone to utilize best practices and maybe even more importantly for the dialogue to ramp up between nations for a major exchange of ideas as all of us work to get security right.
"Everyone’s future depends on getting cargo security right."
The only carrier that has outlined in clear detail what to expect is Lufthansa Cargo.
In a letter to its customers, Klaus Holler noted the gravity of the situation and its impact on air cargo stating:
"The full impact of this mandate will not be fully understood by all of us until after we begin the arduous task of adhering to the complex requirements and adjusting our operational processes."
Lufthansa Cargo taking a partnership approach to our knowledge is also the first airline to spell into in detail what to expect on February 1.
"Our operational plan is prepared to limit the impact on our operations and also our partners," Mr. Holler said.
"At time of booking, the customer must clearly indicate whether the shipment will be delivered screened or unscreened.
"Upon arrival at our facility, cargo will be matched with the appropriate certifications, quality assurance and security program guidelines (SSI) by a dock coordinator.
"Currently, we do not intend to change our Latest Acceptance Times (cut-offs) for both screened and unscreened cargo. "This may be subject to change later on depending on the volume of unscreened cargo we receive at our facilities.
"Cargo tendered to us by a certified CCSF may be tendered loose or consolidated as it is today.
"Cargo booked for passenger aircraft which is not screened must be tendered loose and must have the AWB indicating the actual number of pieces and cannot include any SLAC counts.
"Not accepted for passenger aircraft are consolidated skids, BUP’s, shrink-wrapped freight and the banding of pieces of any kind, if the cargo does not come from a certified CCSF."
Mr. Holler goes on to detail fees, rates and surcharges that as this point can be accessed from any local Lufthansa cargo office.
Maybe Lufthansa has created a template for the entire industry not unlike their single rather heroic effort to bring air cargo front and center late last year in New York at an intensive one-day security seminar.
But supposing that the thinkers in air cargo have gone to bed on any one subject, limiting the possibility of advancing our industry, is echoed by Dave Brooks who closes all of this with another thought.
"If we want to get worked up about something - something that transcends the commercial issues - it's why do we tolerate more than one security standard for air cargo?
"Pity the forwarders who now must deal with an even greater divide between what can go on a freighter and what can go on a passenger aircraft.
"Where is the aviation security wisdom that diminishes the risk of moving an IED or nuclear device aboard a freighter?
"If we were to synchronize our air cargo security programs, the air cargo supply chain might become more streamlined and maybe, maybe we'd have a shot at getting back some of the business we've lost to every other mode.
"And the skies would be safer, to boot."
Geoffrey