ACW 11th September 23

The weekly newspaper for air cargo professionals

No. 1,247 11September 2023

CARGO BOLSTERS OFFERING

INSIDE

With its firm purpose of maintaining the highest standards in the air cargo industry and to continue guaranteeing the best practices to provide the best service to its customers, Avianca Cargo achieved its latest CEIV seal in the product category, awarded by the International Air Transport Association (IATA). On this occasion, the airline was certified CEIV Live Animals because it meets the highest standards, has an infrastructure that ensures the welfare of animals and a management system that is constantly seeking to increase the quality of service.

Air transportation of live animals is considered one of the most expedient methods. The process ensures they are looked after to the highest standards, with professional care and compassionate treatment during their journey. This is why the requirements and protocols necessary for their transportation have been met by each participant in the Avianca Cargo supply chain, to ensure the safety and welfare of animals such as dogs, cats, chickens, horses, among others, during air transport.

According to Leonel Ortiz, Transformation and Innovation Director at Avianca Cargo, “It is a pride to be able to obtain, in a record time of three months, a fourth IATA seal under the diligence of safe and responsible transportation of live animals, thanks to infrastructure improvements at the Miami station and the availability of our network for transportation.

We will continue working with motivation and commitment to remain a benchmark of quality and the best partner for our customers”.

In less than two years, Avianca Cargo became the only airline in the Americas to obtain all IATA certifications: CEIV Fresh, CEIV Lithium Batteries and CEIV Pharma. This demonstrates the commitment of the changes made in safe and controlled procedures, infrastructure, and customer experience.

“Handling and transporting live animals is a complex operation given each species has its own specific handling requirements. Adding CEIV Live Animals to its CEIV Fresh, CEIV Pharma and CEIV Lithium Batteries certification means Avianca Cargo is operating within a validated framework that meets regulatory requirements. We congratulate the airline on becoming one of the first airlines in the Americas to complete the suite of CEIV certifications. Avianca Cargo’s customers can have the confidence that their special cargo will be delivered safely and in top condition,” said Brendan Sullivan, IATA’s Global Head of Cargo.

This certification is not just a seal of approval; it is the result of the constant effort to improve, provide the best solutions and guarantee professional, careful, and empathetic treatment of animals. Avianca Cargo will continue to work with determination and confidence to achieve excellence in every process in the supply chain, and thus continue to face new challenges and opportunities with customers.

Asia’s global gateway grows ...

PLAYING a pivotal role in the bustling cargo operations at Hong Kong International Airport, Hong Kong Air Cargo Terminals Limited (Hactl) has ...

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RHENUS GROUP SOLIDIFIES ...

RHENUS is further expanding its existing presence in the Latin America (LATAM) market through strategic initiatives designed to enhance its ...

ONE-STOP AIRFREIGHT SHOP ... PAGE 4

NAVIGATING TURBULENCE: HOW ...

IN a globalised world where supply chains interweave across continents, disruptions in one sector can send shockwaves throughout the entire ...

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ENHANCING CARGO QUALITY ...

CARGO IQ has been gaining momentum with the addition of new members and the development of innovative industry standards ...

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One-stop airfreight shop

PLAYING a pivotal role in the bustling cargo operations at Hong Kong International Airport, Hong Kong Air Cargo Terminals Limited (Hactl) has been part of its rise to become the world’s busiest air cargo hub. As Hong Kong’s largest independent handler, Hactl handles over 100 airlines, including 50+ freighter operators, making it mission-critical to the airport’s overall operations.

Hactl offers a comprehensive service, encompassing every strand of the cargo handling operation.

“We provide a one-stop shop service that includes terminal handling (receiving and hand-out of cargo, build up and breakdown of cargo, and security screening) ramp operations (loading and unloading freighters) and documentation,” Wilson Kwong, Chief Executive of Hactl, said.

Its subsidiary, Hong Kong Air Cargo Industry Services Limited (Hacis), further provides value-added logistics and e-commerce fulfilment services.

Productive performance

Efficiency has been the driving force behind Hactl ‘s operations since its inception in 1976. The company’s commitment to innovation and performance excellence has significantly contributed to Hong Kong’s rise through its productivity.

“With such a large share of Hong Kong’s total cargo business, we are mission-critical to the airport’s overall operations,” Kwong explained. It is no exaggeration to say that Hactl has played a massive part in Hong Kong’s rise to become the world’s top air cargo hub, and its reputation for world-leading productivity and

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efficiency.

The range of services provided by Hactl covers all types of air cargo, from live animals and outsize cargo to temperaturesensitive commodities like pharmaceuticals. This versatility enables Hactl to cater to diverse industry needs and support the growth and development of the airfreight market at Hong Kong International Airport.

“It has always been our goal to make our airline customers as competitive as possible, and to open up new revenue opportunities for them, through the quality and scope of our services; their success is our success,” Kwong stated.

Prime location

Hong Kong International Airport itself boasts unique advantages that position it as a prominent airfreight hub. Its strategic central location in the Asian market, proximity to China, bi-lingual workforce, modern Customs regime, impressive automated handling resources, unrestricted flights, and global connectivity with a wide choice of carriers and frequencies make it an attractive choice for airfreight operations.

“Our aim is to handle customer vehicles as quickly as possible, and to shrink the time between receiving exports and flying them, or unloading imports from aircraft and handling them out,” Kwong said.

Ensuring smooth and secure movement of cargo through the airport is a top priority for Hactl. “Our aim is to handle customer vehicles as quickly as possible, and to shrink the time between receiving exports and flying them, or unloading imports from aircraft and handling them out,” Kwong said.

The company deploys extensive security measures, including high-tech developments: “Our latest innovations are augmenting physical security patrols with security robots that record video and audio, and using professionally trained detection dogs to sniff out any concealed lithium batteries in cargo,” Kwong highlighted.

Supported by stakeholders

Despite the impressive growth and efficiency, Hactl faces challenges typical of Hong Kong’s employment market, particularly in recruitment. To address this, the company actively focuses on staff retention through ongoing training, internal promotions, and talent nurturing programmes.

Collaboration with other stakeholders, including airlines and customs authorities, is essential for Hactl to streamline operations and embrace change and improvement continually. Frequent meetings with stakeholders facilitate beneficial partnerships and initiatives: “We have regular meetings with all stakeholders and maintain a receptive stance to change and improvement,” Kwong said.

Returning to growth

Hactl anticipates a challenging 2023 in line with the global situation.

“The Hong Kong market is currently tracking in line with the

soft global airfreight market, caused by consumer inflation and geo-political problems including trade tensions and the Ukraine situation. 2023 is likely to remain tough, but we expect to see growth return in 2024,” Kwong stated.

To enhance cargo handling efficiency and reduce processing times, Hactl continuously implements various measures and technologies. Recent initiatives include the opening of the Integrated Hactl Control Centre (iHCC), digitisation of ramp processes, and upgrades to its logistics control software and apps to facilitate smoother operations.

“Although Hactl still has plentiful capacity for immediate growth within its existing facility, in the longer term we have the option of redeveloping some areas of our site to achieve even higher throughput within the same footprint,” he continued.

As the airfreight market evolves, Hactl stays attuned to different demands and requirements. The company listens to customers and industry trends, leading to the establishment of specialised facilities such as the Hacis e-commerce Fulfilment Centre (HEFC) and the Animal Limo for handling perishables and live animals, respectively.

“We listen to our customers and their needs, and we maintain regular dialogue with the industry at large to identify all new opportunities and trends,” Kwong said.

Environmental sustainability is a key focus for Hactl, aligning with Hong Kong International Airport’s target of net-zero by 2050. Through its Sustainability Strategy Framework, Hactl addresses environmental, social, and community considerations in its operations. The Green Terminal programme and various eco-friendly initiatives have earned the company accolades for its commitment to sustainable practices.

“We even use recycled materials such as discarded wooden pallets to produce our business gifts, and furniture and art installations in our recently refurbished offices earned us a Platinum rating, the highest level under the coveted BEAM Plus Interiors Version 1.0,” he added.

Rhenus Group solidifies LATAM presence

RHENUS is further expanding its existing presence in the Latin America (LATAM)

market through strategic initiatives designed to enhance its service portfolio and capitalise

on the region’s growing potential for globally connected supply chains. The company has announced its acquisition of Colombia-based BLU Logistics and a majority shareholding of LBH Group, bolstering its capabilities in the region and reinforcing its commitment to global supply chain connectivity.

“Our strategic acquisitions allow us to further strengthen our global network and service portfolio in the LATAM region, where we see increasing demand for logistics services, especially for the e-commerce industry. In addition, the region’s proximity to the North American market fosters a robust environment for nearshoring, which aligns perfectly with our growth strategy. Together with BLU and LBH, we create a unique position with the value of a familybusiness for our customers and people by offering a strong footprint in key markets to secure more robust supply chains globally,” Tobias Bartz, CEO and Chairman of the Rhenus Group, said.

A gateway through LATAM

The Rhenus Group has a strong foundation in LATAM, with established operations across Argentina, Brazil, Chile, Colombia, and Mexico. Their recent acquisitions have paved the way for even broader geographical coverage including BLU Logistics’ additional presence in Uruguay, Paraguay, and Ecuador, as well as port agency services in Latin America, among others in Colombia, Brazil, Panama, Curacao and in several Central American countries from LBH.

This expansion complements Rhenus’ leading position in the Asia-LATAM corridor, leveraging BLU’s robust trans-Pacific freight forwarding network. This strategic move not only allows Rhenus to expand its activities in the region seamlessly but enables BLU to extend its reach to European and Indian trade lanes, leading to significant growth in its existing customer offerings and cross-selling opportunities.

David Kassin, previously associated with BLU Logistics, will assume the

role of CEO for Rhenus Air & Ocean LATAM.

“This is a win-win-win for BLU Logistics, Rhenus, and above all, our customers. The global Rhenus network gives us the possibility to further explore other regions and to expand our client base to new segments and geographies, especially to India and the Middle East, as well as Southeast Asia, Europe, and North America,” David Kassin, CEO of Rhenus Air & Ocean LATAM, stated.

“The synergy between BLU and Rhenus, driven by our shared commitment to customer-centricity, team cohesion, and entrepreneurial spirit, will propel us to even greater heights.”

A deepened relationship

The acquisition of a majority share in the LBH Group enables Rhenus to enter and cover the Latin American, Asian, Australian, and African markets as a globally oriented port agency with business sites in 24 countries worldwide as well as alliances in seven additional countries.

As part of the acquisition, the logistics specialist is taking over all the employees at the globally active maritime shipping agency, which includes processing incoming and outgoing vessels – regardless of whether they carry bulk goods, liquid cargo, containers, or general cargo. Rhenus is aiming to extend the takeover to include 100 percent of the shares during the next few years. Both parties have been cooperating in a relationship of trust for many years.

“We’re looking forward to successfully pressing ahead to grow our business together, with our trusted partner Rhenus becoming a permanent feature in our future orientation,” Bert Lagendijk, Managing Partner of the LBH Group, added. Together with his brother Jan Lagendijk, both co-founders of LBH will initially remain active on board to tap into future growth opportunities.

The transaction with BLU Logistics is subject to approval of the Colombian antitrust authorities.

Digitally transforming cargo handling

VIRGIN Atlantic Cargo is embracing a new era of digital excellence with the introduction of Accelya’s FLX Cargo Platform.

This dynamic digital transformation is more than just a technological upgrade; it’s a strategic shift that enhances cargo management, customer experience, and overall operational efficiency by providing seamless connectivity and continued improvement.

Catalyst for connectivity

Virgin Atlantic Cargo’s digital evolution is powered by Accelya’s FLX Cargo Platform, the backbone of the Voyager 7 system. This revolutionary partnership accelerates the airline’s digital transformation journey and fosters a multi-distribution strategy.

Phil Wardlaw, Managing Director of Virgin Atlantic Cargo, stated, “This new generation system offers a multi-distribution strategy, which includes our own website, thirdparty marketplaces, and direct forwarder integration.”

This comprehensive approach ensures seamless connectivity and maximises accessibility for customers.

“We always strive to create brilliantly different experiences for our customers, making air cargo easier for everyone and ensuring that every touchpoint is not only optimal but also meaningful,” Wardlaw said.

“We want every digital booking with Virgin Atlantic Cargo to come with expert support and a human touch at every step.”

Integration and empowerment

The integration of the FLX Cargo Platform is pivotal in enhancing Virgin Atlantic Cargo’s cargo management and customer experience. “The successful implementation of the FLX Cargo Platform transformed our technology infrastructure to maintain and grow volumes secured during the pandemic,” Wardlaw revealed.

Once integrated, it meant we were able to partner with cargo.one, to expand our customer base and booking channels with forwarders globally.”

Through this, the airline collaborates with cargo.one, extending its customer base and offering instant bookings 24/7. This expansion not only amplifies accessibility but also ensures customers benefit from efficient and intuitive digital experiences.

“Later this year we will further expand our digital marketplace offering and we also intend to develop direct customer APIs. Furthermore, we will progress and implement dynamic pricing to ensure our online customers can experience the great customer offering that we currently deliver in the offline channels.”

Tailored movements

Virgin Atlantic Cargo’s innovative framework introduces three distinct service levelsClassic, Priority, and Express - empowering customers to tailor their cargo movements according to their specific needs.

“We see a variety of requirements from different industries. For example, the range and necessities for transporting pharmaceuticals is vast,” Wardlaw stated.

“With sole generic drugs, they are robust and lower in value so may not need the speed or priority that other goods such as Cell Gene Therapy shipments require, given that they are extremely time and temperature sensitive.”

This personalised approach addresses diverse industry requirements, fostering a seamless and specialised booking experience.

“The new framework consists of both products and service levels enabling our customers to tailor every movement by selecting the right handling, speed, priority, and price,” Wardlaw explained.

“As we look towards the future, this framework will enable an intuitive experience across all future booking methods, as well as a basepoint for us to continually develop and adapt to meet and exceed our customer’s requirements.”

Operations and control

The Voyager 7 system’s core features are instrumental in streamlining the cargo booking process and bolstering operational efficiency. The digital transformation doesn’t just focus on customer-facing aspects; it reshapes internal procedures too.

“The Accelya’s FLX Cargo solution digitises every aspect of the cargo booking process –from offer to settlement – providing us with greater commercial and operational control,” Wardlaw highlighted.

“The capability that the new system delivers means we are able to further develop our system ability, helping to ensure that we remain at the forefront of cargo management system advances, and are always aligned to the needs of our customers.”

Customers can now book via various channels, each catering to specific needs, ensuring an optimised experience for every stakeholder.

Virgin Atlantic Cargo’s digital revolution is built on the foundation of continuous improvement.

“As part of the agreement with Accelya, we also benefit from ongoing product development and upgrades throughout the contract, ensuring customer requirements and associated system development is a constant process,” Wardlaw stated.

This commitment to innovation guarantees that the airline remains at the forefront of cargo management system advances, ever-responsive to the evolving needs of customers.

Navigating Turbulence: How truck and ocean cargo disruptions reshape the air cargo landscape”

IN a globalised world where supply chains interweave across continents, disruptions in one sector can send shockwaves throughout the entire logistics industry. The air cargo market, known for its speed and efficiency, has recently found itself in a unique position due to disruptions in the trucking and ocean cargo segments.

Reshaping Domestic Air Cargo Preferences

The sudden bankruptcy of American transportation firm Yellow Corporation has unveiled a cascade of challenges, with one of the most prominent being space availability. The perceived threat of limited space has led businesses to explore air cargo as an alternative for domestic shipments, which historically might not have been considered. The closure of Yellow has prompted companies to consider air cargo as a backup plan, particularly when facing issues such as port congestion or disrupted land routes.

Highlighting the changing perspective, businesses now consider airfreight for domestic challenges. For instance, exploring air cargo into the USA via Rickenbacker, the Columbus airport, allows companies to efficiently transport cargo to the nearest point of need. This shift underscores the evolving notion that air cargo isn’t confined to international shipping alone, but is also an effective remedy for domestic logistical hurdles.

Blank Sailings and the Demand-Rate Paradox

Blank sailings entail the cancellation of scheduled ocean voyages due to diminished demand. This manoeuvre operates on the basic principles of supply and demand: by decreasing the supply (in this case, cargo vessel capacity), shipping lines can elevate rates, creating a domino effect across the entire industry. This process of capacity reduction creates a ripple effect that is now palpable in both ocean and air cargo sectors. This discrepancy has pushed businesses to consider air cargo as a more predictable alternative, despite its higher cost.

As the rates for ocean shipping rise due to decreased capacity resulting from blank sailings, the once-significant cost gap between sea and airfreight experiences a notable contraction. This shift encourages businesses to embrace hybrid shipping methods, strategically allocating goods to air freight for urgent needs, while capitalising on cost-effective ocean shipping for less time-sensitive consignments.

Labour Shortages and Global Supply Disruptions

The worldwide shortage of labour across various industries has amplified supply chain

disruptions. In the ocean cargo sector, this has translated into delayed vessel departures and reduced production capabilities. When facilities are unable to produce the necessary goods to fill a vessel, scheduled sailings are postponed or cancelled. Consequently, businesses are left grappling with supply shortages, leading some to explore air cargo as a means to bridge the gap.

Facilities grappling with workforce deficits struggle to maintain their usual production volumes. This deficiency in output disrupts the flow of goods destined for ocean shipping, leading to a domino effect of delayed or cancelled scheduled sailings. This acute vulnerability forces businesses into a perilous dance with scarcity, prompting some to explore air cargo as a lifeline to bridge the widening gaps in their supply chains

Seizing the Opportunity: How Providers & Suppliers Can Respond

For air cargo providers, the challenges posed by disruptions in the trucking sector present an unexpected opportunity. To capitalise on this trend, flexibility and preparedness are key. Having equipment readily available and positioned strategically to swiftly respond to increased demand is vital. By anticipating the needs of businesses seeking alternatives due to trucking disruptions, air cargo companies can position themselves as reliable partners in times of crisis.

Freight forwarders have a crucial role in mediating these disruptions. Companies that operate across multiple modes of transportation, including air and ocean, have a unique advantage in tackling these challenges. By leveraging airfreight contracts and agreements, these multi-modal organisations can offer agile solutions to clients facing disruptions in either sector. This collaborative approach ensures that businesses have access to alternative logistics options when the need arises, minimising the impact of disruptions on their operations. The interdependence of various modes of transportation within the supply chain is undeniable. The recent disruptions in the trucking and ocean cargo sectors have underscored the need for adaptable strategies in the air cargo market. As businesses grapple with space availability concerns, blank sailings, and labour shortages, air cargo providers have an opportunity to demonstrate their agility and readiness. By positioning themselves as reliable partners and offering solutions that bridge the gaps left by disruptions, air cargo companies can solidify their role in a rapidly evolving logistics landscape. The domino effect of disruptions has redefined the value of air cargo, not only as a fast international option but also as a versatile domestic alternative.

Joloda Hydraroll Helps the Air Cargo Industry Lighten the Load

You don’t need us to point out how extraordinary and turbulent the last few years have been in the air cargo industry. What with the increased flows of PPE and other medical materials, and record-breaking levels of global e-commerce trade, all combined with a shortage of ground staff.

But you may need us to introduce you to Joloda Hydraroll, a global provider of loading and unloading solutions. Joloda Hydraroll can design, manufacture, install and maintain specialist loading systems to solve businesses’ unique loading and unloading challenges. The company creates solutions that integrate seamlessly to provide unparalleled, long-term benefits.

Founded in 1962, Joloda Hydraroll has been providing businesses with loading solutions for more than 60 years – that’s over half a million systems worldwide. Its highly skilled team is over 250 strong, and through extensive knowledge and expertise, its goal is to inspire change and make loading efficient, sustainable, cost-effective and safe.

End-to-end handling

When it comes to the air cargo industry, Joloda Hydraroll has almost 45 years of experience. It can provide a complete handling solution, from truck to warehouse, for air cargo equipment such as PMC pallets and ULDs.

The traditional method of unloading ULDs is to pull them from the truck with winches, but this can be a slow and risky process due to the weight and size of the containers. It can also cause damage to the cargo or to the warehouse floor. The Modular Rollerbed System (MRS) helps Road Feeder Service companies load and unload their trucks and dissemble cargo in warehouses quickly, efficiently and safely.

The MRS system can now be specified with a newly-developed Powered Cargo Roller (PCR) system, which is just 70mm high, making it now even easier to get a PCR trailer in operation. No more special trailer designs, simply specify and retrofit a MRS system with PCR into a standard trailer.

MRS modules or MRS with PCR modules arrive on-site pre-assembled and ready to install in your workshop (or by your trusted bodybuilders) within a couple of days. The beauty of the modular system is that when it comes to fleet renewal, the system can be removed and reinstalled, too.

Whilst the MRS system was primarily developed and used for use in trailers, it can also be retrofitted into warehouses, too, turning any warehouse into a temporary air cargo handling station. Operators can roll a full trailer’s worth of air cargo out of a truck with the push of a button and onto a warehouse’s rollerbed floor. From here, cargo can be rolled into the warehouse for dismantling with ease.

Market growth

According to Boeing’s forecast, the freighter fleet is expected to increase by 80 per cent by 2041 compared to the 2019 fleet, highlighting the need for faster and more efficient air cargo handling solutions.

Wouter Satijn, Joloda Hydraroll’s Sales Director, has expressed confidence that the company’s innovative, high-quality loading and unloading solutions and combined expertise will offer a service that can’t be matched. “Bringing our portfolio of solutions together will enable air cargo companies to unlock greater value and efficiency from an increasingly complex global supply chain,” he said.

LATIN AMERICA’S GO-TO GSSA FOR OVER TWO DECADES

It’s not enough to be in the right place at the right time. You have to be with the right GSSA in the right place at the right time. Let’s check in with Miami-based PrimeAir, Latin America’s premiere General Sales and Service Agent that’s been serving the region for over 22 years.

Currently, there’s a glut in air cargo capacity as airlines across the world that ordered new freighters during the pandemic are now struggling to fill them. All the while passenger carriers, responding to the strong recovery in travel, are deploying even more aircraft – and more belly-hold capacity.

Despite this, it’s the right time to be in Latin America as air trade here is growing with demand for fresh perishable goods around the globe.

The Latin American air freight industry is expected to grow from USD 1.00 billion in 2023 to USD 1.23 billion by 2028, at a CAGR of 4.22 percent during the forecast period (20232028), according to the International Air Transport Association (IATA). In fact, Latin American carriers outperformed all other worldwide regions in May, in defiance of the general declining trend with a rise in cargo volumes of 13.8 percent.

“Air cargo companies looking for the right place to deploy new service are finding Latin America highly desirable, especially considering the sizable year-round production of produce, fresh-cut flowers, and fish throughout the region,” says Roger Paredes, CEO of Prime Group.

“As a trusted GSSA in the Americas for over two decades, we’ve gained a reputation for sustained reliability and high-quality service to our air carrier customers, including some of the most reputable names in global air cargo transport” adds Paredes. “This is precisely why PrimeAir is the go-to GSSA in Latin America.”

Think Globally, Act Locally

Providing a global service combined with extensive local knowledge, PrimeAir customizes regional front-line services for airlines and other enterprises from across the globe. They specialize in commercializing air freight capacity, supervising complex local operations, and providing professional sales and marketing support.

PrimeAir’s Miami headquarters – located in the “Gateway to Latin America”

– is the perfect point of contact for airlines from all across the world – while the company’s hub stations in Ecuador and Colombia closely supervise the action on the ground throughout the region.

Broad Spectrum of GSSA Services

PrimeAir’s specialty skills also include international certifications for reception and dispatch of aircraft, airport and cargo security management, and a thorough knowledge of international customs and trade rules. Be it in service to an ad hoc or long-term agreement, PrimeAir’s broad spectrum of GSSA services also includes:

• Air Cargo Charters

• Warehouse Management

• Cold Storage & ULD Control

• Ramp Supervision & Ground Handling

• Data Analysis & Online BI Reporting

• Revenue Accounting & Yield Management

• Management Reports

• Representation at Industry Events

• Direct Mailings & Market Analysis

• Customer Service

Logical Alternatives for Customers

PrimeAir’s local-market proficiencies also extend to the U.S. Stepping back to 2022, when a prominent Latin America-based cargo carrier wanted to enter the lucrative North American market, they knew they needed an established GSSA to help them feed new traffic between the U.S. and their South and Central American network. PrimeAir accepted the challenge to represent their service, increase cargo volumes, and optimize operational efficiency. And business is taking off.

Today, all the extra cargo capacity compared to demand is putting downward pressure on rates worldwide, making this a good time for Latin American shippers and forwarders to double down on air freight – and a good time for air carriers to set up shop with a GSSA that knows the terrain, PrimeAir.

Enhancing cargo quality and visibility

CARGO IQ has been gaining momentum with the addition of new members and the development of innovative industry standards.

Among the latest additions to Cargo iQ’s membership are Avianca Cargo, LOT Polish Airlines, and Hitit. While Avianca Cargo had previously been a member of Cargo iQ, it has now recommitted itself to implementing Cargo iQ’s requirements with commendable determination.

LOT Polish Airlines, another recent entrant, is responding to the call from the forwarder community to actively participate in quality networks. Additionally, LOT sees significant opportunities to enhance its own operations through Cargo iQ’s standards.

Hitit, an IT developer of airline systems based in Turkey, aims to play a crucial role in the development of Cargo iQ’s data management platform. By becoming a certified CDMP provider, Hitit aspires to contribute to the success of Cargo iQ’s global community.

“We are inviting our new members to join our various working groups so that they can take advantage of the combined intelligence of the entire Cargo iQ community,” Lothar Moehle, Executive Director of Cargo iQ, explained. “After all, learning from each other leads to the overall understanding of the issues to be tackled and that is very important in the process of quality improvement, which is so important within our community.”

Pursuing high standards

Cargo iQ’s continuous pursuit of improved quality management standards is evident through its ongoing projects. Moehle highlighted the “Care Protocol” initiative, which, at present, focuses on pharmaceutical shipments. The Care Protocol empowers all involved parties to collaboratively plan productrelated requirements and operational routes.

“This will ensure that all stakeholders in the transportation chain are informed about the product requirements, such as re-icing in a transit airport, and have combined the data for route map planning and specific care elements for quality measurement,” Moehle said.

Another project aims to establish time-specific route plans, next to the existing flight-specific information. Through agreements on acceptance times and availability for shipments, airlines gain flexibility in optimising their capacity while adhering to agreed-upon delivery timelines.

Shipment transparency

Cargo iQ’s Cargo Data Management Platform (CDMP) has emerged as a key tool for boosting shipment visibility and transparency. This platform calculates route maps for each shipment, enabling real-time visibility into shipment statuses. This visibility empowers airlines and forwarders to provide customers with accurate, up-to-date information about their shipments. Regular quality reports further enable data-driven insights and informed decision-making.

“We and our members are receiving the reports from the CDMP portal and can review successful implementation at shipment level. Within our membership meetings and working group sessions, these reports are used to identify shortcomings in a collaborative fashion and determine what can we do together to prevent these failures in future,” Moehle added.

Benefits for industry players

Improved shipment visibility and transparency offer tangible benefits to the industry. Moehle illustrates this through an aircraft departure scenario. If a departure is delayed beyond the planned time, alerts are triggered, enabling corrective and proactive measures.

Airlines can optimise operations based on real-time information, leading to efficient decisions and minimised delays. Forwarders and customers are also informed promptly, enabling them to adjust plans accordingly. This scenario underscores the practical advantages of enhanced visibility in mitigating disruptions and streamlining operations.

“All new standard milestones that we have created or will be creating in the future will be integrated, planned, and measured as milestones in the transportation chain for airfreight shipments,” Moehle highlighted.

“As our members are planning and measuring these milestones in the route map for all their shipments, these new standards become automatically a part of the planning/measurement process and therefore our members and we as an organisation can measure the success.”

Evolving approach

Cargo iQ’s collaborations extend to industry organisations such as IATA Cargo, FIATA, ASA, and more. These partnerships facilitate aligned efforts and address evolving industry needs.

“As Cargo iQ we have always been, and will continue to be in future, agnostic to the technologies or digital solutions. Cargo iQ is not a technology developer but an enabler,” Moehle explained.

Certain basics are mandatory for all so ensure the members can work together based on the agreed standards and milestones, while selected other milestones and features can be applied by the members based on their business model.

“Cargo iQ is a membership organisation. When members approach us with their new ideas or requirements, such as new developments for Pharma product movements in the global air cargo industry, our members then decide whether it is a project

Cargo iQ is to be involved in,” Moehle continued.

“With a clear mandate from our members – who are very close to the shippers and to the day-to-day activities – the Cargo iQ management team is setting up a new project. In cooperation with the subject matter experts within our membership we then develop a solution for our members.”

ASIA’S GLOBAL GATEWAY

Hong Kong International Airport (HKIA) is continuing to solidify its position as the world’s busiest cargo hub. With its strategic location, HKIA serves as a crucial gateway for the Greater Bay Area (GBA) and plays a pivotal role in the global supply chain.

HKIA maintained its top-ranking position in cargo traffic in 2022, having handled 4.2 million tonnes of cargo. The hub has held this impressive accolade in 12 out of the last 13 years. As an essential gateway for the region, HKIA facilitates the movement of goods from Asia to the rest of the world, boasting a robust network and connectivity, serving diverse countries across the globe.

“We foresee that air cargo in Hong Kong will have positive growth in the coming future,” Irene Lau, Assistant General Manager, Aviation Logistics at Airport Authority Hong Kong, said. “This is something we will continue to build on, so we have very positive aspects of development at the hub and in the region.

Even during the pandemic, HKIA demonstrated flexibility, responsiveness, and agility to keep the air cargo supply chain operational. Despite the challenges faced by the industry, HKIA handled over five million tonnes of cargo in 2021. The airport’s robust infrastructure, preparedness for cold chain logistics, and ability to serve additional charter flights and accommodate ad hoc shipments contributed to its success during the pandemic.

“I can definitely say that Hong Kong has taken the correct steps in carefully balancing the needs of both passenger and cargo traffic, which are both equally important for the region’s success,” Lau explained.

Connectivity is crucial

Recognising the ever-growing trend of e-commerce, HKIA has invested in infrastructure, standards, and operations related to e-commerce logistics. Notable developments include the establishment of Cainiao Smart Gateway, the Alibaba-backed premium logistics centre, covering an expansive area of around

five hectares and boasting smart solutions to improve throughput. Additionally, major logistics players like DHL have expanded their facilities at HKIA to accommodate the rising demand for e-commerce fulfilment services.

“We have a responsibility to keep the air cargo supply chain going,” Lau said. Even during the pandemic, HKIA was active moving ventilators, PPE and digital equipment for individuals to work from home.

HKIA is also working on facilitating international postal shipments especially those from South China in collaboration with China Post and Hong Kong Post, by building a dedicated transit mail facility by 2025. Upholding its high standards, the airport emphasises best practices and operational standards through accreditations such as IATA certifications for various cargo types, including perishables, pharmaceuticals, live animals and recently, lithium batteries.

“That’s a testament to the reliability of Hong Kong as a hub,” Lau stated. “The collective efforts of everyone in the airport community make it happen.”

Intermodal offering

HKIA’s future development plans include expanding its intermodal service and strengthening its role as an international cargo hub. A new intermodal cargo pier will be established within the airport premises and upstream HKIA Logistics Park would be set up in Dongguan, a leading manufacturing hub in the GBA. This will allow exports from mainland China to undergo security screening, palletisation, and cargo acceptance in Mainland China, which is then shipped seamlessly to the airside of HKIA by sea for direct air transshipment to overseas destinations, without the need to undergo security screening again at HKIA. Likewise, imports to mainland China can be shipped directly from the airport’s airside. When the initiative is fully implemented, it can reduce costs by approximately 50% and cut handling time by one-third.

“We foresee that air cargo in Hong Kong will have positive growth in the coming future”

GATEWAY GROWS

“In terms of infrastructure, we have a number of missions, from terminal operations to facilities to cargo agents,” Lau highlighted. “We are very responsive on opportunities, such as e-commerce. We’re very adaptive to the change to ensure we have a range of service offerings, which ensures we can meet the needs of the region and customers.”

On the multimodal front, HKIA is always on the look out for more opportunities to connect to mainland China and the rest of the world, with Lau highlighting how they are exploring different modes of transport available.

Streamlined and sustainable

HKIA has also invested heavily in its digital platform, which aims to streamline operations and improve the user experience for stakeholders such as freight forwarders, warehouse operators, truckers, and cargo terminals. The platform promotes visibility and tracking of cargo status, facilitates collaboration with global

trade partners, and integrates regulatory processes to enhance global trade facilitation.

HKIA’s commitment to sustainability is another significant aspect of its future development. The airport authority aims to achieve net carbon zero by 2050 and has already implemented various sustainability initiatives. These include upgrading the fleet of Ground Services Equipment (GSE), deploying autonomous tractors, supporting the use of Sustainable Aviation Fuel (SAF), and encouraging the adoption of recycled and upcycled materials by airlines.

“The airport strives to be very sustainable. That’s another important aspect that our industry partners should know,” Lau explained. “Together with the airport community, we are committed to achieving Net Zero Carbon by 2050. The airport has a number of very important sustainable initiatives at a time when Hong Kong is, again, the number one ranked cargo hub in the world.”

“The airport strives to be very sustainable. That’s another important aspect that our industry partners should know”

VIEW FROM THE MAINDECK

TRANSPORT LOGISTIC SOUTHEAST ASIA AND AIR CARGO SOUTHEAST ASIA OUTLINES KEY FOCUS

SUPPLY chain resilience, digitalisation and sustainability are undisputedly the leading topics across the logistics sector in 2023 and are likely to have a lasting impact on the industry for years to come. As such, they will be the main focus of the conference programme of transport logistic Southeast Asia and air cargo Southeast Asia, which will be held in Singapore from 1 to 3 November, 2023.

The opening address will be given by Alvin Tan, Minister of State, Ministry of Culture, Community and Youth & Ministry of Trade and Industry (Singapore), and Oliver Luksic, Parliamentary State Secretary to the Federal Minister for Digital Affairs and Transport (Germany).

From 1-3 November, 2023, global and regional logistics decision makers will meet at transport logistic Southeast Asia and air cargo Southeast Asia, the international trade fair for transportation, logistics and air cargo which will be held for the first time this year in Singapore. With nearly 50 sessions in the conference programme, daily exhibitor events and the special project cargo conference, the conference programme offers the perfect opportunity to get up to date on the latest developments in the industry.

The conference programme kicks off with a keynote speech on supply chain strategies by author and logistics expert Mark Millar. After the Covid 19 pandemic, the Suez Canal and the Ukraine war, supply chains came under severe strain three times in quick succession, making rethought and crisis-proof strategies increasingly essential for companies.

Other highlights in the programme include country sessions by Singapore, Germany, Vietnam, Malaysia and Indonesia, which will take place on the first two days of the fair. On the Exhibitor Stage, companies from the logistics, sea and airfreight sectors, such as DHL, dnata, Gebrüder Weiss, Incheon International Airport, Jettainer and Singapore Airlines will provide practical insights into their sustainability and digitalisation strategies, among other things.

Another highlight of the trade fair is the Project Cargo Conference, which will take place on

3 November, 2023, in parallel with transport logistic and air cargo Southeast Asia. It will focus on the trends, challenges and opportunities in general cargo and heavy lift in Southeast Asia. “With transport logistic and air cargo Southeast Asia, we have created a platform that promotes the development of logistics networks as well as business relationships between Southeast Asia and key global markets. In addition, the multi-faceted conference programme we are organising with our partners offers interesting insights into the Southeast Asian logistics market,” says Michael Wilton, Managing Director of MMI Asia, Messe München’s regional subsidiary, adding, “With the Project Cargo Conference, we are also taking into account the fast-growing general cargo and heavy lift market in the region.”

The events in the conference programme are free of charge for all exhibitors and visitors of transport logistic and air cargo Southeast Asia. For an overview and more information on the conference programme, visit https://transportlogisticsea.com.