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Revamped Cargo 2000 has new program

By control on May 7, 2013

By Adina Solomon

Quality management interest group Cargo 2000 suffers from shortcomings, according to the group’s chairman.

“We are losing momentum,” says Mattijs ten Brink, senior vice president sales & distribution for Air France-KLM-Martinair Cargo.

He displays industry figures for the audience at the CNS Partnership Conference Monday: low reliability for airlines, low reliability for forwarders and low asset usage. He says the air cargo business also suffers from a lack of industry standards.

If another sector had these numbers, it would be considered obsolete, ten Brink says.

Cargo 2000 does not appeal to smaller players or shippers, he says. He talks about the story of an average member company such as Air France-KLM-Martinair Cargo.

“We did everything we could with Cargo 2000,” he says.

Though the airline sees the benefits of adopting Cargo 2000’s methodology, ten Brink says too much money and manpower were involved.

So the organization is working to lower the entry barrier and make it less expensive and complex to join with Cargo 2000 neo, a project to redesign Cargo 2000.

The program began at the end of 2012. ten Brink says Cargo 2000 is considering lowering the member rates to $1,500. But he cautions that Cargo 2000 would need many new members to make this rate feasible.

Rates will be discussed at the organization’s September meeting in Hong Kong.

“We need to set unambiguous performance standards,” he says. “One size does no longer fit all.”

The vision of Cargo 2000 neo is to drive further standardization, ten Brink says.

“The value proposition must become attractive to new and existing members,” he says.

Cargo 2000 hasn’t decided if it wants to be a separate organization or within a larger umbrella organization, ten Brink says.

He presents the theory of the red ocean vs. the blue ocean. A red ocean company competes in an existing market space, while a blue ocean company creates uncontested market space.

“Most, if not all of us, will find ourselves in the red ocean industry,” ten Brink says. “You can only win if someone else loses.”

He wants to make sure Cargo 2000 is a blue ocean organization that will be “a catalyst for more fundamental changes.”

“We could better understand why more and more customers decide to move away from airfreight,” ten Brink says.

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