News

AfA reports surge in membership

Posted on | by Scott Case

Brandon Fried of the Airforwarders Association is an annual guest at our luncheon meetings and does a tremendous job summarizing what is happening in Washington, DC, that impacts the air freight industry.

Over the course of the last year they have worked very hard to bolster their membership and this press release supports their success.  We're proud partners with AfA in representing IACAC's interests nationally and Brandon is always a resource that we're able to draw on when needed.

(WASHINGTON) - The growth in the number of freight forwarding companies joining the Airforwarders Association (AfA) has reached unprecedented levels, with the organization's regular membership rolls expanding by nearly 25 percent over the past year, the AfA announced today.

 

More than half of the increase in the association's regular membership - which is comprised of freight forwarding companies that focus on air cargo - has come in just the past few weeks. The AfA now represents 230 such enterprises in addition to more than 120 other businesses and organizations, including major airlines, that work with or serve freight forwarding operations.

 

"As they contemplate increased business in an improving economy, forwarders are likely realizing that the regulatory framework for air freight and other commonly used modes is now more extensive and complex than ever. So they want to make certain their voice is heard in Washington and that they have a way to keep current on regulatory and industry developments," said Brandon Fried, the AfA's Executive Director.

 

As an alliance of indirect air carriers, airlines, truckers and affiliated businesses located throughout the global transportation community, the AfA currently represents companies ranging from small businesses with fewer than 20 employees to large global enterprises employing thousands of people, as well as business models varying from domestic to worldwide logistics operations.

 

Fried pointed out that that much of the cargo handled by the nation's air freight forwarders is transferred across two or more modes of transportation between shipper and receiver.  Accordingly, he said, the AfA has become increasingly active in legislative initiatives and regulatory issues that are present across the broad range of transportation modes, including trucking, shipping and railroads as well as air freight.

 

The association also represents air freight forwarders across more than a dozen government advisory boards and industry councils, including the Department of Homeland Security Aviation Advisory Committee and its Critical Infrastructure Protection Air Cargo Security Working Group, the Transportation Security

Administration Aviation Security Advisory Committee and the TSA Known Shipper Users Group, the U.S. Customs and Border Protection Commercial Operations Advisory Committee, the Department of Commerce Advisory Committee on Supply Chain Competitiveness and the US Chamber of Commerce Global Supply Chain Security Group.

GAO report on FMCSA Safety Measurement Score – AfA analysis

Posted on | by Scott Case

From our friends at the Airforwarders Association (have you registered for AirCargo World 2014 yet?):

Yesterday, the General Accountability Office issued its long-awaited report criticizing FMCSA's Safety Measurement Score methodology as limited because of insufficient information, which reduces the precision of SMS scores.  Based on GAO's analysis of available information, most regulations used to calculate SMS scores are not violated often enough to strongly associate them with crash risk for individual carriers. Second, most carriers lack sufficient safety performance data to ensure that FMCSA can reliably compare them with other carriers.FMCSA_logo

The Airforwarders Association became concerned with this issue because increasingly, SMS Methodology is being used by the plaintiff's bar to sue shippers, brokers and forwarders up the supply chain as well as to seek punitive damages from carriers large and small.  There is good indication that our opposition to SMS methodology was prophetic and that more and more segments of the industry are coming to understand the problem.

GAO recommends that FMCSA revise the SMS methodology to better account for limitations in drawing comparisons of safety performance information across carriers. We hope the FMCSA responds to these recommendations by revising the program and implementing GAO's suggested changes.

Forward Air to acquire Central States Trucking

Posted on | by Scott Case

Content courtesy Forward Air:

Forward Air Corporation To Acquire Central States Trucking
GREENEVILLE, Tenn.--(BUSINESS WIRE)--Jan. 23, 2014-- Forward Air Corporation(NASDAQ:FWRD) today announced that it has signed a definitive agreement to acquire all of the stock of Central States Trucking Company and Central States Logistics, Inc., (collectively referred to as “CST” in this release), from Central States Inc. Founded in 1980, CST provides industry leading container and intermodal drayage services primarily within the Midwest region of the United States. CST also provides linehaul service within the airport-to-airport space, as well as, dedicated contract and Container Freight Station (“CFS”) warehouse services.CST has a seven terminal network with approximately 500 office employees and drivers. Headquartered in Bensenville, IL, CST had 2013 unaudited revenues of approximately $66 million. The purchase price will be $95.6 million, which is approximately eight times 2013 adjusted EBITDA. CST will be acquired on a cash-free, debt-free basis with an adjustment for working capital. Forward Air also anticipates approximately $15 million in net present value of expected cash tax savings as a result of the transaction. The transaction will be funded by Forward Air’s cash reserves and is expected to be accretive to its 2014 earnings.

The closing of the transaction is subject to various customary conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (“HSR”), as amended, and compliance with the covenants and agreements in the definitive agreement in all material respects. It is anticipated that the transaction will close in the first quarter of 2014.

Bryan Grane, President and CEO of CST, said: “We are extremely pleased to join the Forward Airteam. We feel that combined with Forward Air’s strengths in expedited linehaul and final mile LTL solutions, our new partnership will allow CST to more quickly achieve our corporate vision to be the market leader in international supply-chain trucking and warehousing. With the combined entity offering over 90 terminals and 40 CFS stations, we will be able to provide our international air and ocean customers with greater supply-chain flexibility, scale and continuity.”

Bruce A. Campbell, Chairman, President and CEO of Forward Air Corporation, said, “We are very excited about the acquisition of CST. For a number of years we have had the desire to enter the drayage space via purchase of a company with a scalable platform. CST not only provides that platform, but does so while achieving the high margins and low asset intensity that our shareholders have come to expect from us.”

Continuing, Mr. Campbell said, “Over time, we feel confident that Bryan and his team of seasoned transportation professionals will give us the ability to duplicate their approach to the drayage space on a nationwide scale.”

In closing, Mr. Campbell said, “We look forward to the addition of this newest service offering to our airport-to-airport network, TLX full truckload, Complete pick-up and delivery, Solutions final mile and TQI temperature-controlled services. Undoubtedly, there will be both cross-selling and operational opportunities for our combined teams to take advantage of as we move forward.”

 

 

February Luncheon Meeting

Posted on | by Scott Case

Come out and see the new iacac.com unveiled at our monthly luncheon!

When:  Tuesday, February 11, 2014

Where:  Holiday Inn, 1000 Busse Rd., Elk Grove Village

When:  11:15 registration, 12:00 luncheon

Guest speaker:  Scott Case, Founder and Chief Storyteller of Position : Global

Topic:  Introducing the new IACAC.com website

Cost:  $25.00, $2.00 surcharge if paying by credit card

Members and other interested parties are welcome to join us at our monthly luncheon where this month we will unveil the new iacac.com that is in development.

Your Association is planning a major revamp in our look and a concerted effort for outreach and engagement in 2014.  It would be a pleasure to have you there in person to take part in the kickoff event.

You may RSVP by sending an email to mitch.estrada@ariesgl.com.

PLEASE RSVP.  This helps our count for room size and food preparation.

FDA limited service on Friday due to passing of Izzy Antczak

Posted on | by Scott Case

We received the following sad news from the Food & Drug Administration's Chicago District office.  Hug the ones you love a little tighter when you see them tonight:

All,

 

The import office will be processing entries on a very limited basis Friday and will be processing entries remotely on Saturday. If you have an urgent import issues please call (630) 860-1307 x 1109.

 

It is with deep sadness that the FDA Chicago District Office shares the passing of Izabela ‘Izzy’ Antczak, 27, from a sudden brain aneurism. Izabela was an entry reviewer working in our import office. She is survived by her two children Victoria, 5, and David, 8.

 

The funeral is scheduled for January 31, 2014, at 11:00 a.m. at:

Saint Konstance Church

5843 West Strong Ave

Chicago, IL 60630

 

Her family requested any cards or gestures be sent to Izabela’s sister during this difficult time. Her address is as follows:

 

Aleksandra Wojtach

3254 N. Oconto

Chicago, IL 60634

 

Our thoughts are with Izabela and her family.

Alaska Airlines Inaugurates Service Between Anchorage and Phoenix and Anchorage and Las Vegas

Posted on | by Scott Case

ANCHORAGE, Alaska, Dec. 18, 2013 /PRNewswire/ -- Alaska Airlines is inaugurating flights between Anchorage and Phoenix today and between Anchorage and Las Vegas on Dec. 19.

"We're pleased to introduce nonstop service to the exciting destinations of Las Vegas and Phoenix for our customers in the state of Alaska," said Marilyn Romano, the airline's regional vice president in Alaska. "Alaska is the only airline offering nonstop flights from Anchorage to Las Vegas."

Flights will operate on each route three times a week. Anchorage-Las Vegas service will be offered year-round while Anchorage-Phoenix flights will operate seasonally through April 19, 2014.

"It's always a pleasure to welcome new service to McCarran and Las Vegas," said Rosemary Vassiliadis, director of aviation at McCarran International Airport. "And during this time of year, those taking advantage of nonstop flights from Anchorage will enjoy not only our city's great dining and entertainment, but warmer temperatures as well."

Summary of new service:

Start date City pair Departs Arrives Frequency
Dec. 18 Anchorage-Phoenix 8:25 a.m. 4:15 p.m. Mon, Wed, Sat
Dec. 18 Phoenix-Anchorage 5:15 p.m. 9:20 p.m. Mon, Wed, Sat
Dec. 19 Anchorage-Las Vegas 10:20 a.m. 4:35 p.m. Thu, Fri, Sun
Dec. 19 Las Vegas-Anchorage 5:35 p.m. 10:10 p.m. Thu, Fri, Sun
All times based on local time zones

To book and for complete fare rules, visit www.alaskaair.com or call 1-800-ALASKAAIR (800-252-7522 or TTY/TDD line 800-392-0228).

Alaska Airlines, a subsidiary of Alaska Air Group (NYSE:   ALK), together with its partner regional airlines, serves nearly 100 cities through an expansive network in Alaska, the Lower 48, Hawaii, Canada and Mexico. Alaska Airlines has ranked "Highest in Customer Satisfaction Among Traditional Network Carriers" in the J.D. Power and Associates North America Airline Satisfaction StudySM for six consecutive years from 2008 to 2013. For reservations, visit www.alaskaair.com. For more news and information, visit the Alaska Airlines Newsroom at www.alaskaair.com/newsroom.

 

SOURCE  Alaska Airlines

RELATED LINKS http://www.alaskaair.com

Delta Air Lines on Cell Phone use in Flights

Posted on | by Scott Case

ATLANTA, Dec. 18, 2013 /PRNewswire/ -- Delta Air Lines (NYSE:   DAL) today issued the following memo from CEO Richard Anderson to its 80,000 employees worldwide.

(Logo:  http://photos.prnewswire.com/prnh/20090202/DELTALOGO )

To:

 

 Delta Colleagues Worldwide

 
From:

 

 Richard Anderson

 
Subject: Voice Calls in Flight

Last week the U.S. Federal Communications Commission voted to seek public comment in consideration of lifting its ban on in-flight cell phone use. Delta will not allow cellular calls or internet-based voice communications onboard Delta or Delta Connection flights.

Our customer research and direct feedback tell us that our frequent flyers believe voice calls in the cabin would be a disruption to the travel experience. In fact, a clear majority of customers who responded to a 2012 survey said they felt the ability to make voice calls onboard would detract from – not enhance – their experience. Delta employees, particularly our in-flight crews, have told us definitively that they are not in favor of voice calls onboard.

Delta has moved quickly when technological and regulatory breakthroughs provide opportunities to make flying better for our customers. That is why we were the first to file our plan with the U.S. Federal Aviation Administration to allow customers to use portable electronic devices below 10,000 feet. Similarly, if the FCC lifts its ban on cellular use in flight, Delta will move quickly to enable customers to use text, email and other silent data transmission services gate to gate.

Even as technology advances and as regulations are changed, we will not only consider what we can do, but as importantly we will also consider what is right for our customers and our employees. This is yet another example of how we continue to have your back and how we also rely on your professionalism and experience to guide our actions and decisions.

Thanks for all you do every day for our customers, our colleagues and our business.

About Delta Air Lines Delta Air Lines serves more than 160 million customers each year. Delta was named by Fortune magazine as the most admired airline worldwide in its 2013 World's Most Admired Companies airline industry list, topping the list for the second time in three years. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 315 destinations in 58 countries on six continents. Headquartered in Atlanta, Delta employs nearly 80,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. The airline is a founding member of the SkyTeam global alliance and participates in the industry's leading trans-Atlantic joint venture with Air France-KLM and Alitalia. Including its worldwide alliance partners, Delta offers customers more than 15,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. Delta is investing more than $3 billion in airport facilities and global products, services and technology to enhance the customer experience in the air and on the ground. Additional information is available on delta.com, Twitter @Delta, Google.com/+Delta, Facebook.com/delta and Delta's blog takingoff.delta.com.

 

SOURCE  Delta Air Lines

DHL Contributes $35 Million in State-of-the Art Chicago Facility

Posted on | by Scott Case

DHL Global Forwarding preps for new Chicago-based facility

By Jeff Berman, Group News Editor
December 13, 2013

Earlier this month, DHL Global Forwarding, a subsidiary of global express delivery and logistics services provider DHL, held a groundbreaking ceremony for a $35 million, Chicago-based facility at Chicago O’Hare International Airport.

The new facility, which is DHL Global Forwarding’s largest building in the U.S., is comprised of 53,000 square-feet of office space and 423,030 square-feet of warehouse space for the unit’s 500-plus employees.

DHL officials said that this facility will serve as a Container Freight Station designated by carriers to receive cargo to be loaded into containers, and a Foreign Trade zone, which acts as a secure area under the supervision of U.S. Customs and Border Protection that is considered outside the Customs territory of the U.S. for the purpose of duty payment.

And DHL added the facility is expected to be Technology Asset Protection Association (TAP-A) certified, with the expectation that it will be globally recognized as a leader in cargo theft protection. DHL Global Forwarding will work with its registrar to have the facility ready for TAP-A certification at the time of the facility’s opening in November 2014.

DHL Global Forwarding Vice President U.S. Central Region Rob Betzer said in an interview that there were various drivers for DHL to roll out this new facility.

“An effective supply change solution demands maximum efficiency across import and export processing of both air and ocean cargo,” he said. “This new facility allows DHL Global Forwarding to create the optimal flow coupled with Free Trade Zone options and a state-of-the-art certified cold chain center of excellence. The decision to launch this new facility was based on our long term growth and sustainability,” noting that the new facility has been a strategic initiative for DHL Global Forwarding for roughly two years.

In terms of specific services this facility will provide for shippers, Betzer said it will offer all aspects of international air and ocean freight, including consolidation services, as well as continuing to offer a premium, time definite heavy weight U.S. domestic product and best in class U.S. Customs clearance/compliance, Free Trade Zone options, small scale warehousing and distribution, and a state-of- the-art certified cold chain center of excellence.

“As a part of a network of U.S. air freight gateways, this new facility will offer our customers more cost efficient alternatives to shipping their cargo,” he explained. “We carefully listen to the voice of our customers and as a result, we will provide services in this facility to support our strong partnerships with our customers.”

This facility will also serve as a Life Science Cold Chain Certified Competency Center for shipping pharmaceutical, biotech, and medical devices that require a temperature-controlled environment. DHL also noted that the facility will be LEED (Leadership in Energy and Environmental Design) certified.

“I am excited by the economic promise that this new cargo center holds for the City of Chicago,” said Mayor Rahm Emanuel in a statement. “O’Hare is one of our City’s key economic engines and with this strong commitment by DHL Global Forwarding we will vastly increase O’Hare’s cargo operation capabilities, and will continue to move Chicago forward as a global transportation leader. This is just one of several recent private commercial investments that are generating opportunities for the people of Chicago.”

New DHS Secretary

Posted on | by Scott Case

Airforwarders Welcome Confirmation of New DHS Secretary

(WASHINGTON) - The Airforwarders Association (AfA) today congratulated Jeh Johnson on his confirmation as Secretary of the United States Department of Homeland Security.

"With his top-level policy experience in addressing security threats to our nation, we know that Secretary Johnson will work to craft innovative approaches to keeping our nation  safe amid many threats and challenges," said Brandon Fried, the AfA's Executive Director.  "We look forward to working with him and his team on the critical task of ensuring the security of air freight while also providing for the smooth and efficient operation of the air cargo network, which is critical to America's economic performance."

About the Airforwarders Association

The Airforwarders Association (AfA) represents nearly 400 member companies dedicated to moving cargo throughout the supply chain.  The association's members range from small businesses with fewer than 20 employees to large companies employing more than 1,000 people and business models varying from domestic to worldwide freight forwarding operations.  In short, they are the travel agents for freight shipments, moving cargo in the timeliest and most cost efficient manner whether it is carried on aircraft, truck, rail or ship.  For more information, visit the association's website at airforwarders.org.

America’s Intermodal Freight Network

Posted on | by Scott Case
 News Logo with Tagline
   From the Airforwarders Association
 

For Immediate Release:                                                   For More Information:
October 31, 2013                                                              David St. John
                                                                                        +1.202.657.6033
                                                                                        david@stjohncommunications.com 

New Report from Congressional Panel a Key Step in Right Direction for America's Intermodal Freight Network, Airforwarders Say  

(WASHINGTON) - The Airforwarders Association, representing nearly 400 companies dedicated to moving cargo throughout the supply chain, has welcomed a set of recommendations from a special congressional panel on ways to improve the nation's freight transportation system.

 

The Panel on 21st Century Freight Transportation, established earlier this year by the U.S. House Transportation and Infrastructure (T&I) Committee, this week released its final report on the current state of the system and suggestions for improving it.

 

Among the recommendations are for the U.S. government to establish a comprehensive national freight transportation policy, designate a national multimodal freight network and identify and develop sustainable sources of revenue across all modes to fund improvements in the network's condition and performance.  The report called for relevant government departments to develop specific funding and revenue options for freight transportation projects prior to Congress' consideration of the surface transportation reauthorization bill in 2014.

"We commend members of this special, bipartisan panel for pointing the way toward what needs to be done to maintain and improve America's freight transportation network, which is so critical to our future competitiveness," said AfA Chairman Richard Fisher of Falcon Global Edge, a Boston-based international freight forwarding company, who testified at one of the panel's hearings in Washington in June.

"In our view, the panel was right on the money in recommending that the first step is to recognize the interconnectedness of all modes of freight transportation, followed up by a course of action to identify and raise the revenues that will be needed to assure our intermodal network is second to none," he said.

During his testimony in June, Fisher noted that the majority of freight moves through two or more modes as it goes through the supply chain.  He also emphasized the need to address important security concerns in ways that keep freight moving efficiently, as well as aging roads, bridges and other transportation facilities that are vital to cargo delivery.

"With this report and the praise it is winning from T&I Committee leaders, it looks like we are off to a great start in the process of developing the workable funding mechanisms to improve our intermodal freight network and thereby support economic growth and job creation far into the future," said Fisher.  "We urge the full Committee, the Congress and the Administration to move swiftly to act on these recommendations and put our freight infrastructure on course for the future."

The special panel, led by Chairman John J. Duncan, Jr. (R-TN) and Ranking Member Jerrold Nadler (D-NY), was established in April by T&I Committee Chairman Bill Shuster (R-PA) and Ranking Member Nick J. Rahall, II (D-WV).

About the Airforwarders Association

The Airforwarders Association (AfA) represents nearly 400 member companies dedicated to moving cargo throughout the supply chain.  The association's members range from small businesses with fewer than 20 employees to large companies employing more than 1,000 people and business models varying from domestic to worldwide freight forwarding operations.  In short, they are the travel agents for freight shipments, moving cargo in the timeliest and most cost efficient manner whether it is carried on aircraft, truck, rail or ship.  For more information, visit the association's website at airforwarders.org.