ACW 10th April 23

The weekly newspaper for air cargo professionals

ACL Airshop celebrates 40th anniversary ...

CATHAY CARGO SIGNS GLOBAL AIRLINE PARTNERSHIP WITH TOWER COLD CHAIN

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INSIDE

KUEHNE+NAGEL SUSTAINABILITY ...

KUEHNE+Nagel has published its seventh Sustainability Report, which covers ESG (Environment, Social, Governance) performance in ...

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AIR CANADA CARGO’S FIRST AIR Canada Cargo has announced the start of operations for its Boeing 767 freighter to Liege, Belgium, connecting a key ...

Cathay Cargo has signed a global longterm rental agreement with Tower Cold Chain, giving its customers access to a wider range of temperature-controlled solutions in terms of container size and payload volume.

Ideal for the transportation of life-saving pharmaceutical, biotech and life-science products, Tower’s robust, reliable, reusable solutions are a welcomed addition to Cathay Cargo’s cool container pharmaceutical portfolio.

Allowing the airline to extend its range of container choice, Cathay Pharma customers will have increased flexibility and variety when shipping high-value, temperature-sensitive products in both Euro or US pallet sizes. This new partnership means customers can access and order Tower’s passive cold chain solutions 24/7 online, either via the Tower website or through Cathay’s booking service, and benefit from 120+ hour protection for products that require an internal temperature of -80°C (ultracold), -60°C (ultracold), -20°C (frozen), +5°C (refrigerated) and +20°C (controlled room

temperature).

This long-term deal coincides with the airline’s rebrand. Previously known as Cathay Pacific Cargo, the rebrand reinforces Cathay’s vision to become one of the world’s greatest service brands and to provide sector-specific expertise and innovative solutions to its customers.

As Tower’s first global airline service agreement, the partnership marks a new watershed in the company’s own rapidly growing reputation. Utilising phase-change materials (PCMs), Tower’s patented design technology guarantees safe temperature-controlled transportation without the need for electricity or human intervention, providing the agility, safety and consistency today’s pharmaceutical supply chains demand. The fully reusable containers, and the option for customers to select a dry-ice free solution for temperatures from -40°C to +40 °C also support Tower and Cathay’s commitment towards sustainability.

“We are delighted to partner with Tower Cold Chain to further enhance our Cathay Pharma portfolio with more choices and innovative

solutions to our customers in the pharmaceutical, biotech, and life-science industries. Tower’s advanced passive containers deliver proven physical and temperature protection, across all supply chains. This, coupled with Cathay Cargo’s vast distribution network will benefit our customers and, ultimately, their patients around the world,” Frosti Lau, General Manager Cargo Service Delivery, Cathay Cargo, said.

“Partnering with a world-class airline like Cathay Cargo ensures their pharmaceutical customers are supported with reliable and seamless temperature-controlled solutions,” Niall Balfour, Chief Executive of Tower Cold Chain, said.

“As our first official airline agreement, this project allows a multitude of customers to lease Tower Cold Chain’s reliable containers directly from Cathay Cargo, providing a robust system for safe and seamless transportation of temperature sensitive products to patients on time and on budget. We look forward to working together to transport time-critical and temperature sensitive pharmaceuticals around the world on our global network.”

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AIR FRANCE-KLM AND CMA CGM ... Air France-KLM and the CMA CGM Group have announced the effective launch of the long-term strategic air cargo partnership ...

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WESTJET CARGO’S FREIGHTERS ...

WESTJET took delivery of the first of its freighters in April 2022, hoping to have them in service by the end of the year.

However ...

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Kuehne+Nagel Sustainability Report paves way for Roadmap 2026 implementation

KUEHNE+Nagel has published its seventh Sustainability Report, which covers ESG (Environment, Social, Governance) performance in 2022. The report also outlines the important role ESG plays in the implementation of the group’s recently unveiled strategy. Living ESG is one of the four cornerstones of its Roadmap 2026.

As part of its commitment to the science-based targets, Kuehne+Nagel in 2022 has further invested in maritime biofuels and sustainable aviation fuels (SAF) to reduce Scope 3 emissions. As of December 2022, the company purchased approximately 7% of the total production of SAF globally. With this, Kuehne+Nagel has supported customers such as the healthcare company Novo Nordisk and the technology company Lenovo in decarbonising their supply chains.

Kuehne+Nagel in 2022 also achieved the goal of 100% renewable electricity across all contract logistics warehouses worldwide. The company purchased renewable energy certificates for this purpose and increased on-site electricity production, e.g. with photovoltaic systems.

In road transportation, Kuehne+Nagel is increasingly shifting to electric vehicles (EV). Most recently, the French subsidiary acquired 23 distribution trucks for domestic groupage transportation services. The company intends to equip 60% of its own fleet with EVs by the end of 2030. Additionally, Kuehne+Nagel has signed an agreement to purchase 10,500 hectares of timberland in the US Northeast. The aim is to preserve an economically and ecologically sustainable forest portfolio. Dr. Marc Pfeffer, Member of the Management Board of Kuehne+Nagel International AG, responsible for Governance, stated: “The sustainable forest management with Salm-Schulenburg, Atlanta, will also include the generation of CO2 certificates to support Kuehne+Nagel’s ambition to compensate its own emissions in parallel with low carbon and reduction technologies going forward.”

Kuehne+Nagel is cooperating with The Conservation Fund to additionally limit the use and protect the timberland’s conservation purposes. The transaction is still subject to customary closing conditions.

Camilo Garcia Cervera appointed Chief Sales and Marketing Officer at IAG Cargo

IAG Cargo, the cargo division of International Airlines Group (IAG), has announced the appointment of Camilo Garcia Cervera as Chief Sales and Marketing Officer. Camilo will shape IAG Cargo’s sales and marketing strategies, lead the business’s partnerships, while working closely with John Cheetham, Chief Commercial Officer, who will continue to focus on commercial strategy and product, in addition to leading on customer experience.

Cervera has over 20 years of experience in the air cargo industry, where he re-joins the business after four years at WebCargo by Freightos. From his previous experience of handling airline relationships and the business unit for digitising logistics service providers, Camilo will bring key learnings of digitalisation to complement his new role.

“Camilo has first-hand knowledge of our customers and his experience in digitalisation will be critical in helping us achieve our aim of being a digital first carrier, while also delivering a customer-first and partner-centric approach,” David Shepherd, Chief Executive Officer at IAG Cargo, said.

“It’s great to be welcomed back to IAG Cargo into my new post as Chief Sales and Marketing Officer where I will be dedicated to improving customer service by increasing the solutions available to them. It is such an exciting time for the industry with the reopening of some major trade lanes and advancements to digital efficiencies,” Camilo Garcia Cervera added.

Air Canada Cargo’s first flight to Liege touches down

AIR Canada Cargo has announced the start of operations for its Boeing 767 freighter to Liege, Belgium, connecting a key European destination to Toronto and the carrier’s extensive global network.

Flights will operate twice per week to Liege, with service increasing to three flights per week later in the year. Service will originate in Toronto and have a stop in Halifax.

“We are pleased to begin operating our freighters to Liege, a further strengthening of the Air Canada Cargo network as we continue to expand and provide customers with reliable, year- round service. This is another important connection from a key European market with Air Canada and Air Canada Cargo’s global network through its Toronto hub,” Matthieu Casey, Managing Director, Commercial at Air Canada Cargo, said.

“The start of Air Canada Cargo freighter operations in Liege is an honour for us, as well as being now connected to the global network of Air Canada Cargo. Liege Airport has been chosen by Air Canada Cargo as the first ever freighter-only station, which clearly shows the fast-growing importance of Liege Airport as a leading European cargo hub”, Laurent Jossart, CEO of Liege Airport, said.

Next month, Air Canada Cargo will start twice weekly service to Basel, Switzerland, one of Europe’s premiere pharmaceutical hubs. Liege and Basel are in addition to the recent start of service to Dallas, Atlanta and Bogota as Air Canada Cargo continues to expand its freighter network.

SATS completes acquisition of Worldwide Flight Services

SATS has announced it has completed its acquisition of global air cargo logistics provider Worldwide Flight Services (WFS) for €1.3 billion.

The acquisition received an overwhelming support of 96.8% approval from SATS’ voting shareholders in January this year and obtained regulatory approvals in all relevant jurisdictions in February. With effect from completion, WFS becomes a fully owned subsidiary of SATS, which is headquartered in Singapore. WFS will continue to be headquartered in Paris and operate as Worldwide Flight Services. Craig Smyth, CEO of WFS, will continue to run the company and report to Kerry Mok, President & Chief Executive Officer of SATS, and an advisory board. Both SATS and WFS have a long history and deep knowledge of the aviation industry. SATS is a leading provider of food solutions and gateway services in Asia, while WFS is a leading air cargo logistics provider globally with ground handling capabilities. As a combined company, SATS and WFS create an AmericasEurope-APAC network with a global footprint of 201 cargo and ground handling stations in 23 countries, covering trade routes responsible for more than 50% of global air cargo volume. The combined group operates in five of the top 10 cargo airports in North America and Europe respectively, including Los Angeles, Chicago, Miami, Frankfurt, and Paris, and four of the top 10 cargo airports in Asia, including Hong Kong, Taipei, Singapore, and Beijing.

“We welcome the management team and employees of WFS into the SATS family. Our focus is now on accelerating value creation for our customers over the medium term,” Mok said. “Together, we will drive technology and service innovations while maintaining our industry-leading standards of safety and security. We are very excited about the value we can deliver for customers from our combined capabilities and broader network,” Smyth added.

CargoAi facilitates eAWB transition and ISC2

CARGOAI has launched a new feature to support its users with the paperless transition. From 3rd April, the 9000+ freight forwarders using CargoMART will be able to send FWB and FHL, once the booking is made, to 80+ airlines.

While IATA announced the industry goal of achieving 100% eAWB by the end of 2022, this was not yet fully achieved. CargoAi aims to bridge the gap between paper and digital AWBs by facilitating the messaging for small and medium sized freight forwarders.

“We fully support this move by CargoAi and hope to see wider customer adoption of eAWB - it is a vital step forward for the air cargo industry and offers a considerable advantage in driving operational efficiency and simplifying the process of document handling,” David Rose, Chief Transformation Officer at IAG Cargo commented.

The launch of the FWB/FHL feature also

Air France-KLM and CMA CGM officially launch their long-term strategic air cargo partnership

AIR France-KLM and the CMA CGM Group have announced the effective launch of their long-term strategic air cargo partnership. It will have an initial duration of 10 years and will see Air France-KLM Martinair Cargo, part of Air France-KLM Group, and CMA CGM Air Cargo, part of the CMA CGM Group, combine their networks, freighter capacity and dedicated services to build a more compelling offering. The partnership will help meet customers’ need for more integrated and resilient supply chains. It will leverage Air France-KLM’s vast air cargo franchise, experience and capabilities, especially as they pertain to specialised cargo, backed by a worldwide cargo network and state-of-the-art facilities at its global hubs. For its part, CMA CGM will mobilise its large commercial network and global logistics platform.

The deal will tap into the groups’ respective strengths to provide customised, agile, efficient, and cost- effective services for customers. The offering will allow them to benefit from greater freighter and belly capacity, a more extensive network of destinations, a mix of scheduled and charter flights, improved flexibility, as well as tailored connections across the world.

Customers will have direct access to a dedicated online platform (myCargo) and digital services for easy online bookings available 24/7, as well as expert customer service. Since 20th March 2023, CMA CGM flights are available for booking on myCargo and customers can easily book and combine flights operated by Air France, KLM, Martinair or CMA CGM Air Cargo on this industryleading digital one-stop shop.

allows CargoMART users to send all information required for ISC2, to comply with the new European customs standards. The feature is available for all leading airlines available on CargoMART such as Qatar Airways Cargo, Lufthansa Cargo, Turkish Airways Cargo and 80+ other airlines that have been directly integrated.

“We are excited to launch this new feature to support our users, in addition to the many features already available on CargoMART. The eAWB, being digital, facilitates communication between all parties, ensuring the status of the shipment can be tracked within CargoMART itself, allowing for greater transparency and improved visibility of the shipment’s status. Of course, the eAWB eliminates the need for physical documents, it only reduces printing, handling, and storage costs, but also the waste and the carbon footprint of the industry,” Matt Petot, CEO of CargoAi, said.

WESTJET CARGO’S FREIGHTERS TAKE FLIGHT

WestJet took delivery of the first of its freighters in April 2022, hoping to have them in service by the end of the year. However, certification from the Canadian authorities took longer than expected, preventing the company from using its airfreight fleet.

Now, having been given the green light by Transport Canada earlier this year, WestJet Cargo is finally ready to watch its freighters take off, as the company’s cargo operations kick into full gear.

“The path to get here has been kind of exhilarating, with a brand-new team, lots of planning and deliverables,” Kirsten de Bruijn, Executive Vice President of WestJet Cargo, said. “The process has provided so many opportunities to learn and grow and really enabled us to set a strong foundation for our freighter business.

Three of our tails will enter into service this month with the fourth undergoing final modifications before it joins the fleet later this year.”

Process and partnerships

Speaking after the certification, de Bruijn called it a “long-awaited milestone” for the company “that will now enable us to disrupt the air cargo industry in Canada,” as it readies its four B737-800 Boeing Converted Freighters for all-cargo operations.

WestJet Cargo and the Canadian government worked closely every step of the way, with the carrier believing it has helped officials to better understand its “intent to better support Canada’s national transportation supply chain.”

“We are very excited about the upcoming launch of our freighter operation: I’m sure everyone who was involved in this process looks forward to our formal entry into operations,” de Bruijn added.

As well as its work with the Canadian government, WestJet has formed a partnership with the GTA Group to bring its vision to life. WestJet saw great potential in its work with the group, as it believes they are “experts in all parts of the logistics supply chain.”

“With their knowledge and state-of-the art facilities, they fully

complement the WestJet Cargo operation to offer best-in-class services to our customers, shippers and freight forwarders,” de Bruijn explained.

Distinct market

WestJet Cargo saw a gap in the Canadian airfreight sector, believing that the country’s market has long been underserved with air cargo capacity. Bringing a team of highly flexible, agile and out-of-thebox thinkers, the carrier looks to offer exceptional service to its customers.

“Our brand and product brings something fresh, innovative and exciting to the market; I really look forward to seeing the positive impact we have on the Canadian sector!” de Bruijn said.

With potential for relative growth across the whole Canadian market, WestJet will create dedicated connectivity throughout the hubs of Miami, Toronto, Vancouver, Halifax and Los Angeles, stimulating imports and exports.

WestJet Cargo already carries a broad range of commodities, and the freighters will help it to expand its portfolio. It will continue to fly things like perishables, e-commerce and live animals, with the freighters enabling it to carry oversized items and unitised e-commerce pallets. “I like to think of it like everything we are doing now, just on a larger scale with added versatility and more tailored to the needs of our customers,” de Bruijn said.

As the Canadian market becomes increasingly demanding, WestJet Cargo is looking forward to the ongoing development of its product offering. “Our team is prepared to fine-tune our products and services to suit customer needs, each of us is deeply committed to WestJet Cargo’s success. It’s a really great time to be a part of this business and culture,” de Bruijn said.

The Canadian market presents a distinct set of challenges and opportunities for the airfreight sector due to its vast size and incredibly cold winters, requiring a specialist approach. “Many parts of the county are challenging to reach via air, and their needs, specifically in e-commerce, are largely underserved. This drives

“WestJet Cargo is in a great position to be flexible based on changes in the air cargo landscape”

FLIGHT

our focus and efforts to expand into these markets and ensure Canadians are receiving the products they desire,” de Bruijn said.

Broad vision

WestJet Cargo is bringing a broad vision to the industry that will allow it to provide “the most creative, agile and flexible solutions” for its customers with a cost competitive product.

Domestically, the carrier’s primary challenge will be the weather, and with WestJet’s 27-years of experience, this is definitely something it is prepared to handle.

Internationally, the year ahead will see challenges related to the economic landscape. Air cargo has always been cyclical, and WestJet Cargo will focus on the creative ways it can meet this challenge.

“WestJet Cargo is in a great position to be flexible based on changes in the air cargo landscape, and because our freighters are integrated with the existing passenger network, we will continue to have access to that network,” de Bruijn said.

This is a really electric year for WestJet Cargo. “Our team is super high-energy and passionate and I’m constantly impressed with the innovative and creative ways they are committed to doing business,” de Bruijn said.

“Canada is a huge country with an ongoing demand for distribution. We do not see as much exposure to economic downturn as other countries and markets. This is exactly what will allow WestJet Cargo to evolve. Our teams are growing and we’ve introduced new IT systems, processes and programmes that will ensure we remain stable and well-positioned for future expansion,” the WestJet Cargo executive vice-president continued.

Looking to the future, WestJet Cargo sees many possibilities. The company is heavily investing in infrastructure, digitisation, product and talent. At the same time, the carrier is putting a significant amount of focus on its internal and external tools – all with the idea that it wants to be easy to do business with.

ACL AIRSHOP CELEBRATES 40TH ANNIVERSARY

ACL Airshop, a global leader in air cargo Unit Load Device (ULD) logistics solutions to over 200 airlines, air cargo carriers, and other transportation clients, will be announcing additional expansion plans in a press briefing at the annual IATA World Cargo Symposium in Istanbul, Turkey on 25th27th April 2023.

As an industry thought leader, ACL Airshop will lead the “Sustainability” segment of the symposium, with a full day of expert panellists and speakers.

ACL Airshop owns, maintains and leases more than 60,000 Unit Load Devices (ULDs), including airfreight pallets and containers, issued from over 50 airport hub locations across North America, Europe, Asia Pacific, the Middle East and Latin America. ACL Airshop’s strong growth in recent years builds on the company’s 40-year heritage as an air cargo equipment and logistics specialist. Its worldwide services network has expanded from 23 airport hub locations in 2016 to 55 at latest count. The company maintains the largest independent inventory of lease-ready ULD assets in the industry for short-term solutions, and also has a growing array of longer-term ULD Management contracts. The company is deploying innovative logistics technologies such as “FindMyULD” and “ULD Control” which yield better fleet efficiencies and operational cost savings for customers. ACL

Airshop was first-in-market among its competitive class to offer Bluetooth tracking & tracing of air cargo pallets and containers.

Over the past 40 years, ACL Airshop has become a leading worldwide one-stop shop for leasing, sales, repair and fleet control of ULDs and cargo control products manufacturing for the aviation industry. One of the unique aspects of the company’s offerings is short-term rentals and leasing solutions for airlines’ cargo products requirements—that is where ACL Airshop has made its strongest reputation for Custom ULD Solutions. That includes one-way leasing and convenient drop-offs. Yet additionally, in the past several years the company has developed a large, growing portfolio of multi-year ULD management & logistics contracts with various air carriers. The strategic intent is to maintain market leadership in short-term solutions while expanding the recurring long-term revenues in fleet contracts. The company’s short-term solutions satisfy a myriad of needs in the fast-paced frenetic global ecosystem of air cargo, while the long-term contracts yield cost-efficiency and stable logistics improvements for clients.

For 2023 and beyond, the company will keep ramping-up its customer-focused plans around the world, investing in technology innovations, expanding its long-term contracts

portfolio, remaining the market leader for short-term leasing solutions, and fostering a very high-performance culture as a strongly entrepreneurial employer.

“Our growth has been a customer-driven strategy. We listened to our airlines and air cargo clients, responding to their requirements. We now have a single very large majority shareholder that is highly experienced in aviation, logistics, and infrastructure—providing ample fuel for continued strategic growth. ACL Airshop is a legacy-quality enterprise,” Steve Townes, President & CEO of ACL Airshop, said. “We make our customers measurably more efficient; saving them time and money. Fast, effective customer service and responsiveness are hallmarks of our company as a vibrant, nimble worldwide organisation of entrepreneurs. Our expansion strategy is deliberate and well-capitalised. We are cementing our reputation as the fastest-growing niche leader for Custom ULD Solutions. We have been perfecting our unique business model for four decades. And our secret weapon is PEOPLE, our dedicated highly-experienced teams around the world,” Townes added.

ACL Airshop intends to invest for growth in each of its lines of business in the coming years, and expand to keep pace with rising industry trends. The headquarters is Greenville, SC, and the main international office is Amsterdam, NL.