The Need for SpeedA L O O K A T I N T E R N A T I O N A L A I R F R E I G H T F O R W A R D I N G

B R A N D O N F R I E D

W W W . A I R F O R W A R D E R S . O R G

Integrators

Forwarders

Our Forwarder Members

AfA Airline Members

The Value of Air Cargo

Only 2% of World Measured Tonnage

30% of the Value of Goods Transported

ServicesDoor to Door delivery

Time Definite

Export/Import Regulatory Compliance

Insurance

Letters of Credit

Packing

Kitting

Complex Distributions

Storage

How We Make MoneyBuy at Airline Wholesale Rates Based on Volume

Sell at a Discount Below Airline Rack rates

Win-Win for the Airlines◦ They fill available space

◦ They avoid cost of retail sales, marketing and customer service

How We Move Airfreight

Belly Space on Passenger Airlines

Combination Carriers

Cargo Only Aircraft

Excess Capacity on the Integrators

Is it Worth the Money?

High Value Goods

Perishables

Quick Turn on Receivables

Factory Line Down

Aircraft on Ground

New Product Launches

Customer Demand

Urgent Medical Needs

Why a forwarder?Best rates possible

Strong buying position

Not married to one carrier

Global networks

Compliance experts

Save money and hassle

Other Logistics Players

Customs Brokers

Property brokers

3 PLs

Connect with AfA!

http://www.airforwarders.org

What is CRAF?

Civil Reserve Air Fleet (CRAF) is a readiness program used to provide a significant portion of the nation’s air mobility resources when the Department of Defense (DOD) airlift exceeds the capability of military aircraft.

◦ Voluntary contractual program

CRAF Purpose

AMC to utilize aircraft and commercial crews if CRAF is activated.

Events leading up to the creation of CRAF

World War II

◦ Air Transport Association (ATA) and the United States Army Air Forces agreed to use civil aircraft to assist the military

◦ Lend-Lease Act was passed on March 11, 1941

◦ The first cargo transport took place on June 21, 1941

◦ The United States enters World War II on December 7, 1941

◦ Civil airlines played a vital role during World War II

ATC – Contract Airlines Operations During World War II

Mode/Year 1942* 1943 1944 1945

Transport Miles (000,000)

Total Worldwide*** 31.3 128.6 340.7 561.2

Contract Worldwide 28.2 83.9 104.2 105.6

% Contract 90% 65% 31% 19%

Total International 21.6 104.0 295.1 505.0

Contract International 18.5 59.4 85.9 98.1

% Contract 86% 57% 29% 19%

Total Domestic 9.7 24.6 45.6 56.2

Contract Domestic 9.7 24.5 18.3 7.4

% Contract 100% 99% 40% 13%

Passenger Miles (000,000)

Total Worldwide 157.7 883.5 2439.7 5048.4

Contract Worldwide 134.0 658.2 1082.6 1482.0

% Contract 85% 74% 44% 29%

Total International 148.0 847.6 2185.9 4343.9

Contract International 124.3 622.2 1023.4 1261.0

% Contract 84% 73% 47% 29%

Total Domestic 9.7 35.9 253.8 704.5

Contract Domestic 9.7 35.9 23% 31%

% Contract 100% 100% 23% 31%

How was CRAF started?December 15, 1951 – Departments of Defense and Commerce agree on CRAF establishment

Started true development in 1952

Developed further at the end of the Korean War and hints of involvement in Vietnam

Flexible Response offered CRAF resources across warfare spectrum

Incremental Stages of CRAF ActivationAugust 28, 1963

Stages Description Authority

Peacetime Operations Perform airlift service in support

to deployed forces.

Executive director, single

manager, operating agency for

airlift services

Airlift Emergency – Stage I When required to perform airlift

services for DOD operations in

support of, but not confirmed to,

counterinsurgency activities and

localized emergencies.

Secretary of Defense

Airlift Emergency – Stage II When required to perform airlift

services for DOD operations in

support of, but not confined to,

limited wars.

President of the United States

Airlift Emergency – Stage III

Activation of CRAF

When required to perform airlift

services for DOD operations

during major military

engagements involving U.S.

forces (lined or general war).

Declared national emergency –

Secretary of Defense, or in

accordance with the conditions

of the contracts.

Incremental CRAF Activation – 1970

Stages Description Authority

Peacetime Operations Perform airlift service in support

to deployed forces.

MAC Commander

Airlift Emergency – Stage I When required to perform airlift

services for DOD operations in

support of, but not confirmed to,

counterinsurgency activities and

localized emergencies.

MAC Commander

Airlift Emergency – Stage II When required to perform airlift

services for DOD operations in

support of, but not confined to,

limited wars.

Secretary of the Air Force

Airlift Emergency – Stage III

Activation of CRAF

When required to perform airlift

services for DOD operations

during major military

engagements involving U.S.

forces (lined or general war).

Declared national emergency –

Secretary of Defense, or in

accordance with the conditions

of the contracts.

Commercial AugmentationMilitary Cargo Hauled

Year Percent

1962 40.5

1963 37.5

1964 22.2

1965 26.1

1966 30.2

1967 33.7

1968 24.0

1969 20.3

1970 15.8

1971 10.8

When was CRAF activated?

August 18, 1990◦ Operation Desert Shield (ODS)

◦ Stage I of CRAF Activated

January 17, 1971◦ Stage II of CRAF Activated

Military Air Command Airlift Operations

Cargo moved in September 1990 and January 1991

Building on Performance

Air Mobility Command (AMC) aggressive in finding solutions◦Future deployments◦Declining military budgets◦Performance◦Program Participation

What is a CRAF Partnership?

Mandatory requirement enforced October 24, 2016

CRAF carriers may register designated agents

Airline Benefits

DOD Peacetime Business

Increased Access to Foreign Markets

Joint Use of Military Fields

Reciprocal Auxiliary Aircraft Capability

Reducing the Impact of CRAF Activation

Designated Agent’s Responsibility

Military Surface Deployment and Distribution Command Freight Traffic United Rules Publication

Comply with federal statues, regulation and states laws

General Freight Management (GFM)

Automated Transportation Requests (ATR)

Coordinate logistics

US Bank Management

Honor contract terms with CRAF partner

Designated Agent Benefits

Provide logistical support as a CRAF partner

Ability to grow business within the program

Credibility to grow in other sectors

A sense of pride in doing their part to service the US military

Military Benefits under CRAF

Personalized customer service

Communication

Necessary skills sets to handle high visibility

shipments

Multiple resources

Flexible options