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Jason A. Franks Founded Fashion Forward Worldwide in 1999 President & CEO We are Global Logistics Service Providers IAC approved by the TSA 1.

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Presentation on theme: "Jason A. Franks Founded Fashion Forward Worldwide in 1999 President & CEO We are Global Logistics Service Providers IAC approved by the TSA 1."— Presentation transcript:

1 Jason A. Franks Founded Fashion Forward Worldwide in 1999 President & CEO We are Global Logistics Service Providers IAC approved by the TSA 1

2 What is an IAC, when/why would you need one? Indirect Air Carrier  We are not a manufacturer  We are not the exporter  We do not own/operate the airplanes  Approved by the TSA  Fashion Forward applied in 2003; was approved in Feb  A USA exporter can utilize the services of a TSA approved IAC to facilitate the transporting of goods on a PAX Air Carrier (Continued on next page) 2

3 (…..continued from previous page)  Known/Unknown Shipper  Due to the strict nature of maintaining sensitive security information under TSA guidelines, I am not at liberty to release the requirements to establish a shipper as a known shipper…but I can state that ONLY a known shipper’s goods are allowed to be transported on PAX service. 3

4 The Implementing Requirements of the 9/11 Commission Act of 2007 Mandates 100% screening of all cargo for outbound PAX service is to be screened at the piece level as of 8/2010. The 9/11 Act requirement to screen, also applies to international inbound air cargo. Assistant Administrator for Transportation Sector Network Management, John Sammon, was quoted stating this would take place no later then 8/2013. (above information referenced from Webcast on 9/14 by Douglas Brittin, Air Cargo Manager US TSA.) (cont.  ) 4

5 (…continued) As per Keith May, Manager of Cargo Regulatory Compliance at AA Cargo; AA has implemented a policy of 100% screening at the pieces level at all origins for PAX  NOTE: All China/Hong Kong cargo is X-ray screened before domestic and international flights, no matter if they are PAX or freighter service. In England, since the Lockerbie Bombing in 1988, all PAX cargo is screened before being loaded onboard. 5

6 Air Cargo Challenges of 2009 Global recession  less freight in the market  major losses by carriers in both air/ocean services All above leads to a reduction in capacity  has lead to parking planes in the deserts of CA/AZ Laws of supply/demand dictate that DEMAND  = COST  Major backlogs (continued on next page…) 6

7 (…continuation from previous page) Typical peak/slack seasons --- Traditionally peak begins in August and runs till the end of Chinese New Year (late Jan/Feb); leaving slack (off-peak) to be after the Chinese New Year until the end of July. End of because of lower capacity, has lead to a big expansion of the charter market, airlines have actually chartered airplanes as alternatives to bringing grounded planes back into service…which leads to an increase in cost. Street Fight --- Solution  stay ahead of the curve by relying on the production schedules of our clients. 7

8 State of Air Cargo in 2010 Started off with much of the same as the end of 2009 Remember, it is still peak season until after the Chinese New Year, this year started February 14 th. Rise in capacity as of 2 nd quarter (Q2)  majority of aircraft coming of a storage had re-entered service Rise in freight volume  higher than pre-recession levels year over year (continued on next page…) 8

9 (…continued from previous page) Asia – USA market – freight volumes are expected to soften after Thanksgiving Asia – European market – is currently soft where as now it is traditionally peak season for the routing 9

10 Handouts Q3 Cargo eChartbook Premium Air Travel Traffic Monitor 10

11 State of Air Cargo 2011 Optimistic, according to my regular communication with our global partners According to IATA (International Air Transport Association) key indicators for air freight demands are currently pointing to slower growth. According to the IATA Q report, airlines are expecting a rise in volume but are concerned about a decrease in profits due to an increase of expected capacity to enter the global market  My feelings are upbeat in general. Airlines and freight forwarders will have plenty of opportunities in the market place and in 2011 to ensure that 2011 will be a better year for importers/exporters than 2009 and


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