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Air Cargo in 2012 : The Washington Perspective

Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

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Page 1: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

Air Cargo in 2012 :

The Washington

Perspective

Page 2: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey
Page 3: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey
Page 4: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

Our Mission

• Educate & Advocate on

Behalf of Our Members

• Promote Aviation Security

• Promote Best Practices to

Enhance Safety

Page 5: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

The State of the Industry

• Past

• Present

• Future

Page 6: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

International Inbound Screening

Page 7: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

International Inbound Challenges

• 194 Countries in the World

• U.S. Needs Agreements with All

• Viewed with Skepticism

• Delays Make U.S. less Competitive

• Advanced Data? How Much Time??

• Who Pays?

Page 8: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

Air Cargo in Washington

• Elections coming

• Dim prospects for significant

legislation in 2012

• Challenges remain

• More Markey legislation?

Page 9: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

Responding to Yemen

Page 10: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

Shipment Logic

Page 11: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

CBP: Building Cooperation for the Future

• ACAS Pilot Program

• Simplified Entry Pilot

• Bersin Departure

Page 12: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

Working with TSA

• ASAC

• KSMS User Group

• IACMS Authorized

Representative

management process

Page 13: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

TSA Wins the Budget Battle

Page 14: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

FY 2012 Consolidated Spending Act

• $7.85 billion, up $153 million from 2011

• Several hundred million for 250 AIT body scanners

• 140 new behavior detection officers• Restricts hiring to 46,000 screeners

• 53 additional air cargo screening staffers!

Page 15: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

2012 Challenges

Page 16: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

The Highway Bill

Page 17: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

Trucking Issues

• Hours of service

• F.I.T. Act

• CSA 2010

• Driver turnover

Page 18: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

FAA Reauthorization

• Short term just passed

• 21 short-term reauthorizations in the past

four years

• Not a long term solution

• NextGen must be funded

Page 19: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

2012 Challenges -Lithium Batteries

‣House Bill

‣D.O.T. Ruling

‣UPS Dubai Crash

‣Could be Limited on

Passenger Planes &

Cargo Flights

Page 20: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

EU Emissions TradingScheme

• Unilateral

• No International Approach

• Increase Costs for Airlines and Air

Cargo

• Backed by EU Court

• U.S. Legislation Against

• China won’t Pay!

Page 21: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

It’s the Stupid Economy

Page 22: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

Asia Pacific Drop• Drop in Asia

outbound volume

• No real peak season

• Jade going

• Others reducing

capacity

Page 23: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

The Unexpected!

Page 24: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

2012 Opportunities

Page 25: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

Pharmaceuticals!

Page 26: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

Trade Agreements

• Panama

• Colombia

• Korea

• Could increase exports by $12

billion

• FINALLY PASSED!

Page 27: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

Autopilot is Not an Option

• Airfreight Industry is a prime target

• We must educate new TSA, staff

• We must advocate for sound legislation and effective rulemakings

• Our actions make a difference

• Doing nothing invites failure

Page 28: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

DHS Aviation Security Advisory CommitteeTSA Informal KSMS User GroupCNS/IATA Advisory BoardUS Chamber of Commerce Supply Chain Security GroupCOAC Air Cargo Advisory CommitteeTIACA Air Cargo Security CommitteeAirports Council International Air Cargo CommitteeTransportation Research BoardLithium Battery CoalitionDHS Critical Infrastructure Protection Air Cargo Security Working Group

Page 29: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

At the Table…

Page 30: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

On the Table!

Page 31: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

Washington Fly-in

Page 32: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

Clear Skies Ahead?• Challenges remain but opportunities too

• Industry shows strength and versatility but…

• We must be prepared for the unexpected!

www.airforwarders.org

The Future Looks

Bright!

Page 33: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

• If not an AfA member, join now!

• If a member, donate!

• We’ve got your back. Help us

help you.

• Applications accepted today-see

my lovely assistant!

Shameless Advertisement

Page 34: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

Connect with AfA!

Page 35: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

Miami, Florida

March 18-20, 2012

Page 36: Air Cargo in 2012 : The Washington Perspective · Air Cargo in Washington •Elections coming •Dim prospects for significant legislation in 2012 •Challenges remain •More Markey

www.airforwarders.org202-393-2818