Erie International Airport, Tom Ridge Field Executive Director Derek Martin shares the airport’s COVID-19 safety response and impact on its operations, as well as why it continues to soar as a regional asset

As states reopen and people begin to adjust to a new normal, one of the industries being watched as an economic indicator is that of air travel. Here, Erie International Airport, Tom Ridge Field Executive Director Derek Martin shares the airport’s COVID-19 safety response and impact on its operations, as well as why it continues to soar as a regional asset.

In the month of April, TSA screened less than 90,000 passengers at the nation airports. These numbers represent a 96-percent reduction in passenger screening. In the United States, TSA normally screens between 2.4 million to 2.8 million passengers daily. In the month of June 2020, a total of 1,852 passengers boarded at Erie Airport. This is compared to June 2019, when ERI boarded 9,691 passengers. We have had a dramatic reduction in flights, going from 50 weekly departures to 21 weekly departures in June 2020.

Businesses have made a difficult decision to suspend all business-related travel due to COVID-19 concerns. Along with the stay-at-home orders in all 50 states, the business community has been working from home. The state of Texas and others have had the strictest restrictions for visitors to their state. For example, if you arrive in Austin, Texas, you are screened and are requested to have a stay-at-home/ hotel for 14 days. These restrictions make it hard for the business traveler.

• Airport personnel have been cleaning and disinfecting high traffic areas. • There are alcohol-based hand sanitizer stations available in the terminal. • Deep cleaning of the public areas is performed twice daily. • Employees have received training on COVID-19 safety and sanitation protocols. • Our airline partners have implemented an electrostatic fogging procedure throughout the aircraft cabins.

Air travel is one of the safest modes of transportation for reasons such as commercial aircraft go through extensive testing before they are sold to airlines and the airline industry is subject to mandatory federal safety regulations and standards. The airlines also have implemented electrostatic fogging procedures in response to COVID-19.

The airport will begin the following projects this summer. • Snow Removal Equipment Building • Parking Lot Reconfiguartion and Car

Rental Canopy • Terminal Reroofing • Maintenance Reroofing • Custom Border Protection Renovation • Concrete Apron Expansion • Repave Parking Lots and Roadways into and out of the airport

Erie Airport is a convenient and easy-touse airport with service from three legacy carriers, onsite parking, car rental agencies available, and secured food and beverage. Airfare is competitive, and service on American Airlines and United Airlines allows you to connect anywhere in the world. Per Economic Impact of Aviation in Pennsylvania 2019 Interim Report from the PennDOT Bureau of Aviation, the Erie Airport supports: • 1,719 jobs • $65.785 million total payroll • $182.612 million total output For more information about the Erie International Airport, visit www.erieairport.org.

Bill Speros is a partner at MacDonald Illig. He counsels clients on business transactions and corporate compliance, including international trade matters. Mike Bishop, a Summer 2020 law clerk at the firm and a secondyear student at Case Western Reserve University School of Law, contributed to this article.

Businesses that regularly ship goods within the United States are no doubt acquainted with basic domestic freight terms such as FOB, or Free on Board. One might see FOB in an international contract and expect it to have the same meaning as in domestic parlance. After all, FOB is FOB, is it not? Unfortunately, the answer is “No.” FOB in an international shipping contract is likely a reference to an entirely different shorthand: the so-called “Incoterms” published by the International Chamber of Commerce (ICC). The Incoterms FOB rule has a completely different meaning than the domestic FOB rule (exporters who want to use the Incoterm equivalent of FOB should instead opt for the FCA rule, or Free Carrier At). Failure to understand the differences between domestic terms and Incoterms could result in operational and legal complications for your overseas shipments. First published in 1936 and intended to standardize international shipping contracts, Incoterms are a globally recognized set of three letter abbreviations that the ICC updates approximately every 10 years. There are currently 11 Incoterms, each designed to help clarify the allocation of shipment risks and responsibilities. International buyers and sellers must understand not only the Incoterms incorporated in their agreements, but also which versions of the Incoterms apply. Updated Incoterms do not automatically replace older versions, and thus contracts executed prior to the most recent January 2020 update remain subject to the version of Incoterms specified in the contract. In fact, parties may elect to use an older version of Incoterms despite the 2020 update, provided the version used is not so outdated that it results in a violation of other applicable shipping laws. If the parties agree to use the 2020 Incoterms, there are some minor but important differences from the 2010 version. One noteworthy rule change affects the CIF and CIP rules. When shipping under the 2020 CIP rule (Carriage and Insurance Paid To), a seller now must purchase a higher level of insurance, i.e., ICC Clause A insurance or the equivalent, whereas the CIF rule (Cost, Insurance, and Freight) still permits a lower level of coverage under ICC Clause C. Why the difference? Clause A insurance provides more comprehensive coverage for manufactured goods, while the lower level of coverage under Clause C is more appropriate for commodities. As a seller, noncompliance with the correct Incoterm-required insurance could result in inadequate coverage for your shipment. Another notable change is the DPU rule. DPU (Delivered at Place Unloaded) is not a new rule, but rather a re-naming of the 2010 DAT (Delivered at Terminal) rule. The new name underscores the fact that a DPU destination can be any location, not just a facility that one might describe as a “terminal.” The 2020 Incoterms also highlight the disparity between DPU and the DAP (Delivered at Place) rule. For example, under DPU, the seller is responsible for loading, shipping and unloading the cargo. Under DAP, however, the seller is responsible for loading and shipping but the buyer must unload. Overlooking this subtle difference could potentially lead to an embarrassing situation or logistics delay — or worse, a claim for breach of contract. Incoterms can be instrumental in simplifying your international shipments. Moreover, they can help you get on the same page with your overseas trade partners, especially when linguistic or cultural barriers exist. Becoming familiar with rules like CFR, EXW and FAS will go a long way toward ensuring your international shipments do not go MIA. For more information, contact Bill Speros at 814/870-7764 or wsperos@mijb.com.