Part 1 – Forwarding Agent’s View
QCS: FRA Cargo Train Is Being Derailed
This is today’s vicious circle in air freight: poor profits induce investment weakness, leading to downgraded services.
In this initial report we present the view of a forwarding agent.
The tonnage throughput at major European hubs, frequently documented in this online platform, is going through the roof. But the flip-side of the coin is that complaints about massive
delays and problems with imports and exports caused by poor handling performance are rapidly increasing. For instance in Frankfurt, prompting the German Freight Forwarding and Logistics
Association (DSLV) to speak of a continuous “handling disaster,” harming the entire economy.
Among the critics claiming that the handling situation at FRA’s Cargo City South runs the risk of getting out of control is Stephan Haltmayer, CEO of Frankfurt-based agent Quick Cargo
Service (QCS) with whom we spoke.

Stephan, are the allegations tabled by the industry association in accord with many members of FRA’s local cargo community really justified?
Yes, the airport was ill prepared to handle the huge volume increase we have experienced lately. Difficult to understand since the tonnage upswing started as early as September 2016. The
basic problem is that the ground handling companies are understaffed, resulting for our trucks in loading or unloading times taking between 16 to 20 hours, a regrettable situation that
unfortunately has meanwhile become standard. So air freight has moved into the standstill mode. The excessive waiting times reduce road feeder capacity and raise costs which somebody has to pay
for. Actually, airlines should insist that their ground handlers perform according to their contractual obligations, loading or unloading trucks within a time frame of one to two hours. However,
this is not the case, causing the handling drama we are witnessing, severely damaging the reputation of FRA as main European cargo gateway.
When looking at the situation in depth, which are your main points of criticism and what should be done to get air freight flows on track at Rhine-Main airport once again?
The main shortcoming is that Frankfurt is still missing an IT-based tool allocating fixed loading and unloading slots for trucks when delivering or picking up shipments at any of the local
ground handlers’ freight terminals. Instead, all happens in an uncoordinated manner, leading to jams, long waiting periods at peak times, severely aggravating the already existing problems caused
by the fast rising tonnage.
Meanwhile, things have developed so awkwardly that Frankfurt’s reputation as fast and efficient cargo gateway is harmed.
We feel that the airlines are clearly in the lead to take action, because it’s them and not the forwarders who have a contractual relationship with the ground handlers. In my view, things
have got out of control because in the past, carriers have not taken the problem seriously enough, evidenced by the fact that they never advocated long-term solutions nor did they try to get into
serious talks with forwarding associations. Now however, the wind seems to change slightly. This, because it’s the carriers that are increasingly suffering under the worsening conditions. They
slowly seem to realize that they should step down from their pedestal, start negotiations with forwarders and ground handlers to ease the situation and get things back to normal step by
step.
Some trucking companies speak of waiting times exceeding 20 hours which their drivers and vehicles are facing in Frankfurt. Can you confirm or are such claims horror stories without substance?
As said, the ground handling companies are understaffed and therefore we all are currently experiencing intolerable loading and unloading times. As a reaction to the FRA mess, we at QCS
started trucking some of our shipments from Frankfurt to Amsterdam and Paris CDG because in both cases our goods are faster in the air there compared to FRA. But again, due to vehicle shortage
the availability of road feeder capacity in the market is severely limited.
Waiting at airports costs time and money. Which brings up the question who pays for the trucker’s unproductive waiting time at the end of the day, the ground handlers, airports or forwarders?
In my opinion these extra costs have to be paid by the airlines. We carry our shipments within a certain time-frame from their collection points to Frankfurt’s Cargo City South. If there are
any traffic jams or personnel shortages at the handlers’ terminals we feel not responsible for having caused these hiccups. Again, above all it’s the airlines that should take action.

In a nutshell, are the current problems FRA is facing homemade and therefore unique or do they reflect alike shortcomings at other European freight hubs as well?
London Heathrow recently sent a message to their customers apologizing for – I quote: “repeated congestions and severe delays, including freight that has missed booked flights due to massive
backlogs.” I also heard of severe problems at Liege and major backlogs at Italian airports reported by forwarding agents. In contrast, AMS seems to perform somehow better, providing perhaps some
comfort for the slot fiasco they just went through. Schiphol’s big advantage, compared to Frankfurt, is their automated delivery system which informs truck drivers via their cell phones about the
availability of gate slots at warehouses, enabling timely off-loading of goods or pick-ups. Further to this, Schiphol offers haulers dedicated parking facilities where drivers can wait until a
ramp gate is free. But the bottom line is that airlines have squeezed their handlers over years like a lemon, demanding constantly lower charges. This impacted the agents’ margins negatively,
leaving no room for investments in infrastructure or qualified personnel. Now, the carriers are paying the price for their selfish policy.
Are there any remedies on hand to sustainably improve the situation on the long run, for instance, paying ground handlers more money for their services enabling them to hire better qualified
personnel?
You are hitting on the basic problem, because in my eyes the carriers are trying to save money at the wrong end. Awarding a contract to the cheapest bidder can seldom result in high handling
quality. It might work in off-peak seasons but not in times where volumes are going through the roof.
On the other hand, ground handlers must ask themselves as well if they have done everything right to cope with the challenge of high rising volumes, labor shortage and low wages leading to
work overload and warehouse congestions, particularly during peak seasons and Christmas time. I doubt that they have!
Interview: Heiner Siegmund
Write a comment
Bob Rogers (Wednesday, 03 January 2018 09:03)
Great article, and indeed the recent surge in cargo volumes has served to expose a lot of long overlooked deficiencies in the whole air cargo chain. While this ( and the accompanying two articles) focus mainly on the issues around truck dock congestion I would suggest that there is an equally serious shortcoming in the manner in which ULD are handled at these facilities.. and lets never forget, no ULD no cargo. The air cargo industry needs to wake up to these issues and sort them out before an even bigger mess occurs.
Heiner Siegmund (Wednesday, 03 January 2018 12:17)
Dear Bob
Happy New Year and thx for your very encouraging and much appreciated comment.
Poor ULD handling and care: you sure got a point there, very convincingly emphasized by you and Urs Wiesendanger at the recent Handling Conference held in Budapest.
We covered BUD but will look into the ULD issue once more as suggested by you, complementing our coverage of the current handling problems.
Kind greetings, Heiner
stephan haltmayer (Wednesday, 03 January 2018 16:45)
Kudos to CargoForwarder Global. You deserve a compliment for touching a topic not much spoken about in public but infuriating many parties concerned.
As forwarding agent we are hit hard by handling problems and backlogs of shipments predominantly in Frankfurt but also at a number of other European airports leading to unpredictable transport times. Therefore, I highly welcome your coverage of a constant annoyance the entire industry is lamenting about. You stick to bold facts, describing things as they are, without whitewashing the many problems our industry is facing day after day.
Go on with the good work.
Regards, Stephan
Alex (Wednesday, 03 January 2018 23:21)
A big problem is also that the cargo handling agents are paid with peanuts by the airlines even though they are the ones who need to move the cargo at least 4 times physically from on acceptance until the hand over to the aircraft. And even in times where airlines raise the rates by an immense factor they still try to reduce handling costs. So they handling agents have no other chance than to cut number of staff or hire cheap unecperienced staff. This affects us forwarders and even more important the customers. They pay more for less service and we are the once in between the customers and the airlines. In the current game the only winners are the airlines. They level up their profits and pay peanuts for which of course they only get monkeys which we shall sell as race horses to our customers.
Wolfgang vom Hagen (Thursday, 04 January 2018 00:32)
The article is very well describing the current situation in our industry. Of course, the carriers will disagree but having spoken to various ground handling companies, it becomes obvious that handling agreements are nothing but price - driven and mostly cut-throating. What kind of quality can we expect if we choose the cheapest company having to perform the actual physical freight handling ?