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The weekly newspaper for air cargo professionals No. 1,257 20 November 2023

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INSIDE INDUSTRIAL GROWTH COMES ...

LUFTHANSA Cargo has placed great importance on the Latin American region, offering a range of freighter services to destinations ... PAGE 2

EXPANDING MEDITERRANEAN OPERATIONS IN A CHALLENGING ENVIRONMENT

oste Air Cargo (PAC), the Italian freighter operator, 100% owned by Poste Italiane, has been providing air cargo services for over 40 years, covering general cargo and a wide range of specialist sectors. Traditionally focused on the domestic network, PAC now operates scheduled cargo flights on specific international routes in the Mediterranean, in addition to charter services on short-medium haul. The fleet comprises five Boeing 737-400Fs, connecting seven Italian airports through its hub in Brescia Montichiari to customers around the globe. “Our current fleet allows us operations centred in the Mediterranean region; in particular, our regular destinations are: Tel Aviv, Alexandria, Larnaca and Tunis, while we are targeting further destinations like Turkey, Morocco, Algeria and Libya,” Gennaro Scarfiglieri, CEO of Poste Air Cargo, explained.

Evolution and cohesion Poste Air Cargo is working to leverage its parent company’s expertise in digital evolution and encourages foreign stakeholders to embrace digitalisation. “We believe that the efficacy of the supply chain is strictly linked with the degree of digitalisation reached by each of the stakeholders involved,” Scarfiglieri said. “We are significantly investing in this direction in order to be ready to extract all the benefits stemming from it.

Emerging from a tricky environment Over the past five years, Poste Air Cargo has managed to successfully navigate the turbulent times the region has gone through due to a steady and fruitful service. Working with its parent company, Poste Air Cargo has strived to embrace leadership in the B2C domestic market, seizing innovative opportunities.

“Our readiness in exploiting the favourable market conditions in the air cargo business during the pandemic has allowed Poste Air Cargo to consolidate its brand in the Mediterranean area,” Scarfiglieri highlighted. Currently, Poste Air Cargo doesn’t have alliances in place. However, in order to enhance its services, it has developed a number of interline agreements with several operators that allow it to enlarge the scope of the offering to its customers, covering North America, Africa and the Far East.

Green goals At this stage, Poste Air Cargo is experimenting with the use of sustainable aviation fuel on its aircraft, while moving to adopt a modern fleet which will cut almost 20% of emissions and fuel consumption, while reducing noise pollution. As part of this mission, Poste Italiane Group has committed to reducing its emissions by 30% by 2025 and achieving carbon neutrality by 2030. “I think that by now all the stakeholders of the industry have got clear in their mind that the transition to the very ambitious targets, set for the industry, require a strong and long term support by public authorities,” Scarfiglieri outlined.

Mediterranean market This year has been overly complicated in the cargo space, affected by three main factors: A reduction in demand, determined by the uncertainties stemming from the crisis in Ukraine; an increase in the supply, thanks to the wide reopening of the passenger flights; and a significant increase in risk and insurance premia in Israel and, in general, the Near East. “I think that a significant reduction of international tensions in our operating areas is, for PAC, a pre-requisite to recover acceptable business conditions,” Scarfiglieri accepted.

Boosting Italy ’s economy ...

SCHIPHOL SOARS TOWARDS ...

AMSTERDAM Airport Schiphol (Schiphol) has embraced sustainability as a driving force in its operation, recognising that it should be a top priority for ... PAGE 4

QATAR AIRWAYS CARGO EYES ...

FRESH from commencing freighter operations to Warsaw, Poland, Qatar Airways Cargo is looking towards the region as an area ... PAGE 6

EMBRACING COLLABORATION ...

MAKING the aviation industry greener is a broader challenge than just reducing emissions. Committed to being net zero by 2050, LATAM Cargo has ... PAGE 7

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aircargoweek.com

NEWS

INDUSTRIAL GROWTH CONNECTS LUFTHANSA TO LATIN AMERICA LUFTHANSA Cargo has placed great importance on the Latin American region, offering a range of freighter services to destinations such as Mexico City, Guadalajara, Buenos Aires, São Paulo, and Montevideo, in addition to several passenger flights. Having established a strong presence in the airfreight section, Lufthansa Cargo sees significant potential for further development and improvement within this market. “Mexico will be our primary destination with a daily freight service, closely followed São Paulo, Frank Nozinsky, Lufthansa’s Director for Mexico, Colombia, Ecuador, Central America and Caribbean, stated. “Fuelled by the growing trend of nearshoring, Mexico is quickly becoming a major industrial hub. By reducing dependence on China, Mexico offers a compelling combination of quality and labour costs, making it attractive

to not only to the U.S. market, but also to a broader global audience,” he continued.

Facilities and flights Lufthansa Cargo is represented in Mexico by its wholly owned subsidiary Lufthansa Cargo Servicios Logisticos de Mexico (LCSLM), which is dedicated exclusively to airfreight warehousing. “This company manages not only Lufthansa’s cargo but also offers lucrative high-quality services to a variety of clients,” Nozinsky highlighted. Starting 30th October, Mexico will benefit from an increased frequency of daily Lufthansa B777F freighter flights. “Growth in the automotive, pharmaceutical and technology sectors have been the main drivers of this increase, with these industries showing strength in

AVIATION EMBRACES AI WIREMIND first began exploring applications of AI in 2018 with its passenger revenue management solution, Cayzn, to see how machine learning could improve forecasting. Since that first foray into artificial intelligence, data science and the use of machine learning models has become a core competency at Wiremind. AZura International, Robert Denholm House, Bletchingley Road, Nutfield, Surrey RH1 4HW, United Kingdom

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ACW 20 NOVEMBER 2023

AI underpins how its revenue optimisation solutions provide users with recommendations, leveraging its inhouse built and managed data science platform that handles the entire model lifecycle. While the air cargo industry is fundamentally different from the passenger sector, this expertise in data science and artificial intelligence has provided Wiremind with the foundation to develop cargo-specific solutions and models tailored to the needs of the industry through its CARGOSTACK offering. “The clients using our CARGOSTACK optimiser solutions are benefitting from various machine learning models, primarily for their predictive capabilities,” Guillermo Medina Moralejo, Vice President of Business Development at Wiremind Cargo, said. “Capacity management is one area where we have applied models to empower commercial teams with an accurate prediction of how much cargo capacity they will have for sale.” This is one of the fundamental starting points of any cargo operation, yet one of the most challenging to get right. Wiremind’s capacity forecast module provides users with a prediction of the payload and cargo capacity that will remain available to them after factoring passenger requirements, while its overbooking solution forecasts cargo rates to provide a recommendation on how to overbook your flights. Both of these models leverage machine learning models and combine powerfully to drive significant reductions in undesired outcomes, such as offloads or inventory wastage.

Efficient evolution

Wiremind continues to see use cases emerge where machine learning models and AI could provide value

both import and export directions. In addition, seasonal products like mangoes, avocados, and berries have added to Lufthansa’s cargo offerings for exports,” he continued.

Fluctuations and focus Mexico has always been a top destination in the Lufthansa Cargo network. The airline worked even with its joint venture partner Aerologic to maintain the route for a year until adequate capacity could be restored. “We are pleased with our performance and acknowledge the decline in profits. Nevertheless, we have effectively expanded our market presence in key industries thanks to our dedicated customers and skilled employees,”Nozinsky stated. “Despite the challenges many countries face, such as inflation in Argentina and political issues in Brazil, we see potential for growth,” he concluded.

through their forecasting or prediction capability and, as a company, Wiremind is always on the lookout for new ways to apply the latest technologies. One such example is in assisting cargo teams with the challenge of missing or inaccurate shipment dimensions, where machine learning models could provide insights on the expected dimensions of bookings based on historical patterns of behaviour. Similarly, they also recently announced plans to see how other “branches” of artificial intelligence such as large language models can be incorporated into CARGOSTACK as a type of digital assistant to support users with their workflows in the product. “The emergence of artificial intelligence into the “mainstream” does not necessarily imply the elimination of jobs, but rather it will entail an evolution or change in how jobs are performed, while benefitting from productivity gains,” Moralejo explained. “It is primarily about managing the transition through upskilling of teams to adopt AI tools in existing industries and also await the emergence of new sectors and industries, in the same way that the adoption of the internet in the 90s opened up a whole new digital economy today which employs many people.”

Embracing AI

The fundamental driving force behind this digital revolution is to create value for airfreight organisations. While different air cargo stakeholders and customers may be at varying levels of digital maturity, it is clear that this is a priority for organisations across the industry. From Wiremind’s perspective, they’d stress the importance of having the correct data foundation in place, which then serves as a springboard to “put the data to work”. This can extend from improved analytics/insights all the way through to advanced commercial recommendations or business process automation, unlocking substantial revenue gains as well as operational efficiencies. As new technologies emerge and new touchpoints are digitised, additional value will be unlocked at an increasing speed. “We are really pleased with the openness and interest that customers are showing in exploring these tools within their businesses,” Moralejo said. “This is particularly the case in the functions of revenue management and pricing, where the need for forecasting and recommendations based on historical and observed data is crucial.” “Similarly, we are excited at the wider air cargo industry’s digitisation efforts as a whole, beyond our immediate customer segment,” he continued. “This is where our membership of CargoTech is unique, and we are pleased to see fellow members introduce AI-based solutions for the wider industry such as CargoAi’s recent CargoCoPilot enhancement to their CargoMART solution.”

NEWS

Schiphol soars towards sustainable future AMSTERDAM Airport Schiphol (Schiphol) has embraced sustainability as a driving force in its operation, recognising that it should be a top priority for the aviation industry as a whole. “Sustainability is not an isolated policy - insetting practices must be incorporated into every decision regarding our operations. It is ever-present,” Olaf van Reeden, Cargo Partnerships Director at Schiphol, said. At Schiphol, the team is working on a daily basis to put sustainable measures into practice across all areas of operation. “Sustainability is a key pillar of our vision for the future, and success is dependent on everybody on site working together to make progress happen. Likewise, we must also work as a cog in the machine along with the rest of the international air cargo community to make meaningful progress possible,” van Reeden continued. In the short term, Schiphol sees airports as being able to make their operations more sustainable by utilising innovations that are already available, such as facilitating the use of sustainable aviation fuel (SAF) and prioritising the decarbonisation of their ground handling operations. Further down the line, Schiphol is looking to other options, such as the introduction of electric and hydrogen-powered aircraft to airfreight, as potential game-changers in bridging the gap to sustainability.

Sustainably sourced “Here at Schiphol, we have many sustainability measures in place, and have been adding to this for years,” van Reeden highlighted. “At the start of 2023, we began using HVO100, a fuel that emits 98 percent less CO2 than kerosine diesel, to run all of our ground equipment.” Schiphol is using this to run its standard cars, delivery vans, pushback tractors, lorries, and more. The airport also offers airlines

sustainable kerosine made from sustainable sources, renewable waste, and residual raw materials. The Royal Schiphol Group is committed to contributing to the development of electric aircraft by trialling models at its cargo hubs, and supporting initiatives such as the Power Up start-up that is studying the feasibility of flying on electricity and looking at the possibility of a network between various regions in Europe.

Balancing demand and environmental aims Leaders in both the public and private sector have realised that sustainability is no longer a virtue, but an essential. “Targets being set for the industry was a key moment for those in logistics, as it really highlighted just how much of a challenge we are facing,” van Reeden explained. For this reason, the adaptation of the UN Paris Agreement in 2015 was a major turning point in sparking significant action, and has led to industry leaders prioritising environmental concerns. “Our aim is to be a circular and energy-positive airport by 2050 that will run entirely on sustainable solar, wind, and thermal energy,” van Reeden added. “Not only are we determined to achieve this, but we are also setting ourselves the target of generating even more energy than we use, meaning the surplus will go to other consumers. This is an ambitious goal, but we are committed to making it a reality.”

ACW 20 NOVEMBER 2023

NEWS Qatar Airways Cargo eyes Eastern European opportunities A

With the launch of a Boeing 777 freighter to Warsaw, companies and customers across Poland will be able to benefit from direct main deck freighter capacity for their imports and exports. Qatar Airways Cargo is looking at moving all kinds of cargo from Warsaw, including cosmetics, dangerous goods, pharmaceuticals,

car parts, textiles etc. “The freighter operation provides us with more flexibility and options as now dangerous goods (DGR) and oversized shipments which are only allowed to be carried on full freighter flights can also be transported to/from Warsaw,” Oudkerk explained. “This is also beneficial for pieces with a height of more than 160cm. The Polish market is not a classical console market so we can expect any type of special cargo, from small boxes to main deck cargo, from live animals to Perishables,” she added.

development of airports and logistics centres has further facilitated the growth of air cargo in the region. “Central Eastern Europe offers competitive labour costs and favourable business environments, attracting international companies to establish their operations and distribution centres in the region,” Oudkerk explained. “Overall, these factors have contributed to Eastern Europe’s emergence as a vital player in the air cargo industry which Qatar Airways Cargo is more than happy to support.”

Freighters offer flexibility

ACW 20 NOVEMBER 2023

Eastern Europe’s emergence The launch of this service provides consistent and reliable freighter operations between Poland and Qatar. This new route demonstrates Qatar Airways Cargo’s commitment to expanding its global reach and strengthening its position in key markets. Adding freighters to Warsaw which is already served by belly-hold flights also enables the carrier to offer more capacity to its customers. As it stands, in Eastern Europe, Qatar Airways Cargo operates freighters to Budapest, Prague and Warsaw while passenger or belly-hold flights operate to Belgrade, Budapest, Bucharest, Prague, Sofia, Warsaw and Zaragoza. With these routes, the carrier’s combined weekly cargo capacity each way, to and from Eastern Europe is more than 790 tonnes. “Central Eastern Europe always had a lot of potential – the region’s strategic location between Europe and Asia makes it a convenient transit hub for airfreight of goods between these two continents,” Oudkerk stated. Eastern Europe has experienced significant economic growth in recent years, leading to an increase in trade activities and the need for efficient transportation solutions. The

FRESH from commencing freighter operations to Warsaw, Poland, Qatar Airways Cargo is looking towards the region as an area with substantial possibilities for the airfreight industry. Boosting its services, operating once a week to the capital of Poland, Qatar Airways Cargo will offer 100 tonnes of cargo capacity on its dedicated freighter, each way, via this route. “Qatar Airways Cargo has been serving Eastern Europe for many years and our weekly freighter to Warsaw perfectly complements the passenger flights to this important city,” Liesbeth Oudkerk, SVP Cargo Sales & Network Planning at Qatar Airways Cargo, said. “Warsaw was traditionally served through belly cargo capacity. However, recognising the evolving demand and the need for increased capacity, we decided to commence freighters to Warsaw.”

Hubert Van De Laaken, CEO of Euro Cargo Aviation and Changi Airport Cargo team – ACW World Air Cargo Awards 2023

Established in 1997, Euro Cargo Aviation has built a strong reputation in the cargo aviation business as an independent GSSA. Offering pro-active communication with airlines and forwarders with local expertise with global market knowledge, the company recognizes that is role is much more than sales and marketing. It’s important that the airline’s product is supported, and the cargo is managed throughout its journey from arrival in our care until delivery to the client. Stuart Holland Vice President Euro Cargo Aviation Euro Cargo Aviation has created “service hubs” across its network that manage the ﬂow of shipments for airlines and communicate to the customer along the route. “These service centres are key to ensuring the agent is getting clear updates about their shipments and can be conﬁdent that we are managing the end-to-end process on behalf of the airline,” Hubert van der Laaken, CEO of Euro Cargo Aviation, said.

Importance of Personal Customer relations

This industry changes often and supply chain demands, and process will always adapt. As a GSSA, Euro Cargo Aviation is focused on the basics, which are – good customer, supplier, and staff relationships, clear information, and process management of the customers cargo from origin to destination. “We adapted well during the disruptions – moving from e meetings, back to face to face and anything in between. It was important in these periods to have a clear understanding of changes in different regions and to adapt when needed,” van der Laaken stated. Euro Cargo Aviation considers itself lucky that its team of professionals understand the industry and are career professionals. “For sure inﬂation plays its part and we support our staff with different wagebased initiatives – however the key is to remain lean and manage the costs for our client airlines – in each of our service hubs there is a responsibility to manage the cost structures of our client airlines so they can remain competitive,” he explained..

Most crucially, Euro Cargo Aviation has a responsibility to deliver full ﬂights and the best possible yield, at a competitive price whilst managing its clients’ costs. “However you model this, it’s crucial you have a solid, professional workforce who are motivated – followed by investment in best people to manage the ﬂow of cargo. Technology will play a major part in the coming 5 years – but the industry also needs to be ready to accept it in a greater way,” van der Laaken said.

Global coverage

With offices in The Netherlands, Belgium, France, Sweden, Norway, Denmark, Finland, Lithuania (Baltics), Germany, Austria, Switzerland, Poland, The United Kingdom, Ireland, China, Hong Kong, The United States, United Arab Emirates, South Africa, Mauritius, Zambia & Uganda, Euro Cargo Aviation has a global footprint. “We are strong players in Europe, Africa, USA and Asia – we want to keep evolving in these areas and growing our strong alliances and partnerships – We have more recently started our journey in the Middle East with the start-up of a Dubai office – from here we will plan to expand in this very important region,” van der Laaken highlighted. “Asia plays an important role in our growth strategy, and we can see some positive growth that we will support and invest in for the future,” van der Laaken added. “Alliances are important and strong partnerships with suppliers – some may prefer the one stop shop environment – but our customers are evolving, and they are flying to new places that are not always on the map of every GSSA – we believe it’s important to have key regions that you have a solid footprint – then work with good partners when needed,” he continued.

Controlling costs

The GSSA sector, like many others, face challenges on a regular basis, requiring them to manage their layers carefully to control costs. Euro Cargo Aviation’s management team all have roles and responsibilities in the day-to-day business and its country level Managing Directors are real entrepreneurs who know how to manage their daily business. “Managing costs is important to maintain competitive pricing, but we also believe in training our younger staff to be the stars of the future and this type of investing will create the best people for the future,” van der Laaken continued.

The Euro cargo Aviation Team at ACW World Air Cargo Awards 2023

www.eurocargoaviation.com

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GSSAS - ESSENTIAL SUPPORT FOR THE AIRFREIGHT INDUSTRY

NEWS

Embracing collaboration and conservation to overcome SAF supply challenges difference in terms of supporting ecosystems. “Deforestation is a huge problem in the region and it is responsible for 55% of the greenhouse gas emissions (GHGs) in Brazil, 47% of GHGs in Peru and 33% of GHGs in Colombia,” Onate highlighted. “Conservation projects that prevent deforestation can have major impact. However, the region is largely excluded from the CORSIA-eligible standards for the 2021-2023 Compliance Period (Pilot Phase) and the 2024-2026 Compliance Period (First Phase)”

Collaboration is critical MAKING the aviation industry greener is a broader challenge than just reducing emissions. Committed to being net-zero by 2050, LATAM Cargo has built a sustainability strategy on three core pillars: climate change, circular economy and shared value. To achieve its ambitious goals, the carrier is focused on four action plans: reducing emissions through operational efficiency and best practices, fleet modernisation, transitioning to more sustainable fuels as they become available, and offsetting emissions through the conservation of strategically valuable ecosystems in South America.

LATAM Cargo is convinced that working under a collaborative approach will allow the industry to generate a more positive impact in the future. “In sustainability, and with other great challenges we face not only as an industry, but also as a society, it is essential to work collaboratively among the different actors: governments, private enterprise, academia, among others,” Onate said. When the industry talks about environmental protection, cooperation is critical because it is an objective that aviation seeks as a society. There is no one-size-fits-all solution. Each

region, country and airline will need to find their own way to netzero. The transition is also likely to move faster in some parts of the world than others. To encourage greater participation of countries and companies in the adoption of SAF, LATAM Cargo believes it is essential to implement a series of strategies and policies. This includes the establishment of government incentives and regulations that encourage the production and use of SAF. In addition, LATAM Cargo has called for funds to be allocated for research and development of SAF technologies, and publicprivate partnerships should be promoted to drive innovation in this field. “For instance, as a group we are constantly learning from those who are ahead of us; we are also willing to share the knowledge we have acquired to those who are further behind,” Onate continued. “We are also open to working on joint initiatives to accelerate the development and adoption of tools and technologies that reduce the industry’s footprint.” LATAM Cargo’s efforts around sustainability and its robust strategy have allowed them to be recognised by TIACA as the winners of the Air Cargo Sustainability Award, in its fifth edition.

South America’s SAF situation Sustainable Aviation Fuel (SAF) has repeatedly been identified as a key solution for the industry to reach its goal of net-zero. However, so far, the industry is yet to see the kind of supply necessary at global level, both in terms of quantity and cost, to have a significant impact. “Access to SAF in Latin America continues to be one of the great challenges facing the various actors seeking to promote the use of this type of fuel produced in this region,” Cristina Onate, VP of Marketing and Product Development at LATAM Cargo, explained. “In South America the situation is even worse, as there is no commercial production, nor do the policy frameworks exist for it to be a viable alternative in the short- to medium- term.” “South America has great potential to produce SAF in terms of natural resources and expertise and thus make a very significant contribution to climate action,” she continued. “It is urgent to advance an agenda that involves different actors to promote the production of SAF in the region.” To find some of the answers to current questions and inform decision making, together with Airbus, LATAM Group has funded a study by Massachusetts Institute of Technology to review decarbonisation and policy options in the region. In addition to this, the company has added other measures to advance in this challenge. One of these is through its Fuel Efficiency programme which has been in place for 10 years now, and has enabled them to reduce its carbon footprint by 6%, avoiding the burning of 1.8 million barrels of fuel per year. “We plan to continue pushing for process improvements and incorporating modern, more efficient technologies both in the air and in the ground,” Onate added.

Decarbonising aviation With the challenges around SAF, LATAM Cargo believes that there is no silver bullet to decarbonise aviation and all pathways need to be advanced in parallel to achieve this goal. “It is sometimes concerning when certain tools are discarded up front and, as a consequence, all the bets are placed on one or two options,” Onate explained. “This is even more concerning as the industry has committed to certain goals. Not meeting Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) goals is not an option; the industry’s reputation is at stake.” LATAM Cargo has identified South America and conservation offsets as a great example of potentially missed opportunities. “Since SAF seems to be insufficient we have looked at complementary tools. We believe that offsets, if they are properly sourced, provide useful tools,” Onate stated. “For example, we are investing in ecosystem conservation projects certified by international organisations, where we ensure an actual and measurable environmental, economic and social impact. In 2022, we offset approximately 24,000 tonnes of CO2, equivalent to about 194 cargo flights from Santiago, Chile, to Miami in collaboration with our cargo clients.” With six of the 10 most biodiverse countries on the planet, South America is uniquely placed to provide nature-based solutions that could not only provide a source of carbon credits, but also provide the industry with an opportunity to make a real

ACW 20 NOVEMBER 2023

MEDITERRANEAN

BOOSTING ITALY

“Like many European countries, SMEs are the backbone of the Italian economy with a great number of them exporting worldwide”

PS has recently inaugurated three state-of-the-art logistics centres in the Puglia region, Italy. This strategic move marks a significant milestone in the company’s efforts to strengthen its position in the region and underscores its commitment to supporting Italian businesses, sustainability, and economic growth.

Three decades UPS has been actively collaborating with Italian companies for over thirty years. The new logistics centres, strategically located on both sides of Italy’s “heel of the boot,” have been established to cater to the evolving needs of businesses in the region. “We’re expecting a busy Peak season, and these centres, along with our recently expanded airport gateway in Bergamo and growing UPS Access Point network, means we’re well placed to support the region and Italy, today and in the future,” Francisco Conejo, Country Manager at UPS Italy, said. The facilities are designed to provide Italian businesses with greater flexibility and speed when shipping their products to domestic and international destinations. “Like many European countries, SMEs are the backbone of the Italian economy with a great number of them exporting worldwide,” Conejo explained. “That said, we still see a lot of room for growth as SMEs better digitize their businesses and can gain easier access to new, lucrative export markets.”

your products to where they need to be at the right time, and that’s where we come in,” Conejo highlighted. The region’s exports are currently dominated by European markets, accounting for over a third of its total exports. The United States and Switzerland represent another significant portion, contributing approximately 10%. Meanwhile, emerging markets make up just under a quarter of Puglia’s exports, with the potential for increased exports to markets such as China, South Korea, Japan, Turkey, and Hungary.

Exports and emerging markets Puglia is the second largest economy in the South of Italy, with particularly strong automotive, agrifood, pharma, chemicals and footwear industries. “These industries, and their local expertise and innovation, are well known internationally and are growing and attracting investment as a result. Of course, a big part of growing is getting

ACW 20 NOVEMBER 2023

Green growth The new logistics centres will facilitate the movement of a wide range of cargo segments, including those from Puglia’s key markets. The increased access to export markets for these sectors is expected to lead to significant economic growth and prosperity

FEATURE

ALY’S ECONOMY

for local businesses. Alongside this expansion, UPS is committed to its sustainability goals. By 2035, the company aims to reduce CO2 emissions per parcel delivered by 50% for global small parcel operations. In this endeavour, UPS is focusing on its facilities, which are planned to be powered by renewable energy across Europe, with that target having already been achieved in these new centres. “We’re also focused on being good partners to the communities where we work and live, including working with the Pangea Foundation ETL (based in Bari) in the Giovani Donne: che Impresa! project: a free orientation course for women who want to start their own business,” Conejo stated.

“For us, it is a year of resilience. What does resilience mean? It means we will plan conservatively and pivot quickly”

Italy’s rebound The year 2023 has been marked by dynamic macroeconomic shifts, a sentiment echoed by UPS CEO Carol Tome. “For us, it is a year of resilience. What does resilience mean? It means we will plan conservatively and pivot quickly,” Tome stated. “It means we will balance defensive and offensive moves, and it means we will execute what we call our wildly important initiatives. Specifically, we will balance efficiency moves with growth opportunities. Think of that as better and bolder.” Italian companies have not been immune to these fluctuations, with certain sectors experiencing more significant impacts than others. Nevertheless, UPS has observed signs of growth and believes that the Italian market is well-positioned to rebound in the future. As the world continues to face challenges, UPS remains committed to adapting to new opportunities. The company’s focus for the coming year includes enhancing efficiency, promoting digital transformation in businesses, and advocating for policies that facilitate international trade.

“It’s a time of uncertainty, but also one of opportunity. Improving efficiency, how we better digitise business and advocating for the right policies to help make trade as easy as possible are all key focuses,” Conejo outlined. “We believe we have the global network in place to adapt to those challenges and help us take the best of “Made in Italy” to customers around the world.”

ACW 20 NOVEMBER 2023

AIR CARGO SOUTHEAST ASIA REVIEW

TRANSPORT LOGISTIC AND AIR CARGO SOU ASIA SHINES LIGHT ON ASIA-PACIFIC MA “It has been an opportune moment for the logistics ecosystem to convene together”

ACW 20 NOVEMBER 2023

ver 7,300 participants from more than 60 countries attended the inaugural transport logistic Southeast Asia and air cargo Southeast Asia, with resilient supply chains, sustainability and digitalisation the dominant themes. Singapore, the Netherlands, Germany, and China were represented with official country pavilions. During more than 50 conference sessions covering current industry topics, visitors had the opportunity to gain insight into industry trends. The participation of 135 exhibitors from 23 countries and over 7,300 industry professionals at the first transport logistic Southeast Asia and air cargo Southeast Asia reflects the great economic potential of the region. Key factors include the advantageous geographical location, growing consumer demand and the desire of numerous companies to diversify their production and supply chains. “The positive response to the inaugural transport logistic Southeast Asia and air cargo Southeast Asia shows the enormous interest in the Southeast Asian logistics market and is a confirmation of the decision to expand the transport logistic cluster to this region. The trade fair offered decision-makers an efficient and practical platform for exchanging ideas in person and establishing and expanding business relationships,” says Michael Wilton, CEO & Managing Director of MMI Asia, Messe München Regional HQ, Singapore. Ravishankar Mirle, Vice President Cargo Commercial Operations, Far East & Australasia from Emirates SkyCargo, also confirms this impression: “I think it has been a very good experience for the last three days. We have had some actionpacked activities, and it has been an opportune moment for the logistics ecosystem to convene together. We have been at a time where we’re just coming out of Covid, the production and distribution hubs in the region have been changing. It has been an opportune moment for us to meet our business partners, our customers, our clients – to share insights, share best practices, and to plan for the future.” As an integral part of transport logistic Southeast Asia, air cargo Southeast Asia also brought together the entire air cargo industry in Singapore. In addition to the exhibition of leading international and regional companies such as Boeing, Emirates SkyCargo, Singapore Airlines, United Cargo, Jettainer, Garuda Indonesia, MAS Kargo, Vietjet Cargo and ACL Airshop, the conference programme included, for example, a panel

discussion on “Building resilient and reliable airfreight solutions for high-tech cargo”. During this session, experts from DB Schenker, Changi Airport and Etihad Cargo gave the audience insights into their corporate strategies.

Conference programmes deal with trend topics

The conference programme at transport logistic Southeast Asia comprised around 50 accompanying events on two stages, providing a platform for the latest industry trends and

FEATURE like BlueBox Systems, PRIOjet Logistics, and Logwin Air + Ocean International discussed technical innovations and the reliability of supply chains between Asia and Europe. On the exhibitor stage, companies from logistics, sea and air freight, such as DHL, dnata, Gebrüder Weiss, Incheon International Airport and Singapore Airlines, provided practical insights into their sustainability and digitalisation strategies, among other things. At the same time, the special conference on Project Cargo offered up-to-date information on trends, challenges and opportunities in the general cargo and heavy lift sector in Southeast Asia. “I think it was a great conference, for us it was wonderful because it was very effective and impactful. We did get a chance to meet a lot of shippers, airlines and supply chain enthusiasts. Especially because Messe München originates from Germany, we did have a lot of leverage out of exposure into the European market, and Wiz as a company is definitely looking at Europe as the next step in terms of our expansion. There was also a lot of emphasis on digital transformation, which is of course something which Wiz bases its expansion on. From that perspective, it made sense, and it was a great conference. Congratulations to Messe München!” summarises Bipin Chinnappa, CCO – APAC & Head – Global Accounts of Wiz Logtec Solutions.

“We have been at a time where we’re just coming out of Covid. The production and distribution hubs in the region have been changing”

SOUTHEAST C MARKET discussions. Among the highlights of the programme were the sessions on the Southeast Asian countries of Singapore, Vietnam, Malaysia and Indonesia: The experts explored the extent to which diversification strategies have impacted Southeast Asian production locations and their supply chains and clearly illustrated the potential in the region. During the “Germany: Logistics from Germany - Logistics for The Future” presentation at country-focused Germany sessions, hosted by Your German Logistics (YGL), companies

ACW 20 NOVEMBER 2023