ACW 26th June 23

The weekly newspaper for air cargo professionals

American Airlines Cargo delivers with ...

PLEDGE LAUNCHES OPEN ACCESS FREIGHT EMISSIONS CALCULATOR

Pledge is accredited by the Smart Freight Centre (SFC) as compliant with the GLEC Framework for global coverage of air, sea, road, rail, inland waterways, and logistics hubs. Its solution is also ISO:14083 aligned, meaning forwarders can have confidence in Pledge’s ability to comply with upcoming regulations that will impact their customers.

“The UK and the EU are starting to mandate the reporting of supply chain emissions, meaning there will be pressure on shippers to calculate and report their emissions in the near future,” de Picciotto added.

“Our freight emissions calculator shows freight forwarders how Pledge can help them get ahead of the curve by offering accredited emissions reporting to shippers and other supply chain partners who will be required to meet these regulations.”

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INSIDE

GLOBAL TONNAGES AND RATES ...

DESPITE a small uptick in global air cargo tonnages week-on-week, figures for the last two weeks combined point towards the

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CARGO.ONE ANNOUNCES

EASTERN Air Logistics and cargo.one have announced a landmark partnership to bring extensive capacity from both China Eastern Airlines and ...

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Pledge Chief Executive Officer (CEO) David Picciotto has launched an open access freight emissions calculator for freight forwarders, showcasing the new system at the 2023 Multimodal conference at Birmingham’s National Exhibition Centre.

Pledge provides freight forwarders with the tools they need to enable their customers to understand, report, and remove their freight emissions. The platform is built with accessibility, transparency, and simplicity at its core.

A prime component of the calculator is Pledge’s Clarity™ feature, which promotes transparency by creating a clear and detailed breakdown of how emissions are calculated at each leg of the shipment journey based on the Global Logistics Emissions Council (GLEC) methodology.

“With rising consumer concerns about corporate greenwashing and the EU’s

proposed Green Claims Directive, businesses are demanding better emissions transparency and visibility in their supply chains,” de Picciotto said.

“We built our freight emissions calculator to show freight forwarders how our platform can deliver value for their supply chain customers in minutes.”

The calculator is simple for freight forwarders to get started with and only requires freight origin, destination, and shipment weight to begin calculations. Inputting additional data points such as vessel numbers, carrier codes, and flight numbers will improve routing and subsequent emissions calculation accuracy.

MENZIES AVIATION ANNOUNCES... MENZIES Aviation has announced its net-zero commitment for scope 1, 2, and 3 CO2e emissions across the company by 2045 ...

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CARGOLUX BECOMES FIRST ...

CARGOLUX has become the first airline to uplift sustainable aviation fuel (SAF) at Luxembourg Airport with the use of the fuel on ...

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Global tonnages and rates solidify downward trend

DESPITE a small uptick in global air cargo tonnages weekon-week, figures for the last two weeks combined point towards the downward trend in tonnages continuing in June, with average rates also continuing the year-long pattern of slow year-on-year (YoY) decline, along with progressive increases in capacity, according to the latest weekly figures from WorldACD Market Data.

Figures for week 23 (5 to 11 June) show a slight increase of +1% in tonnages and almost stable average global air cargo prices, week-on-week (WoW), after tonnages dropped by -5% at the end of May and the beginning of June – based on the more than 400,000 weekly transactions covered by WorldACD’s data.

Comparing weeks 22 and 23 with the preceding two weeks (2Wo2W), overall tonnages decreased by -3% versus their combined total in weeks 20 and 21, with capacity up +2% and average worldwide rates slightly falling (-1%).

At a regional level, all origin regions showed a downward trend in tonnages on a 2Wo2W basis, except ex-Middle East & South Asia (+5%) and ex-Asia Pacific (flat).

Region to region, notable decreases can be observed between Europe and Central & South America (northbound -11%, southbound -7%), between North America and Europe (eastbound -9%, westbound -4%), between North America and Central & South America (both directions -5%), and between Europe and Africa (northbound -11%, southbound -7%). Ex-Europe to Asia Pacific is also on a downward trend (-5%), while Middle East & South Asia to Europe (+10%) and outbound Asia Pacific to Middle East & South Asia (+6%) continue to record growth, similar to last week’s report.

On the pricing side, although average yields ex-Asia Pacific and ex-Africa remained more or less stable, on a 2Wo2W basis, pricing was down from all the other main origin regions, with rates ex-Europe to Asia Pacific showing the most notable decrease (-6%), followed by ex-Europe to Africa (-5%) and to Central & South America (-5%).

Year-on-Year perspective

Comparing the overall global market with this time last year, chargeable weight in weeks 22 and 23 was down -5% compared with the equivalent period last year. The mostnotable changes include a double-digit percent decrease in year-on-year (YoY) tonnages ex-North America (-17%) and ex-Europe (-7%), while traffic ex-Middle East & South Asia was up +8%, YoY.

Overall capacity has increased by +12% compared with the previous year, with double-digit percentage increases from all regions except Africa (+8%) and Central & South America (-12%). The most-notable increase was ex-Asia Pacific (+30%).

Worldwide average rates are currently -38% below their levels this time last year, at an average of US$2.41 per kilo in week 23, although they remain significantly above preCovid levels (+36% compared to June 2019).

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Editor: Edward Hardy

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A SLOWDOWN IS A FAVOURABLE TIME TO PREPARE FOR A FUTURE UPSWING

The economic outlook has significantly deteriorated

IATA anticipates that air cargo demand was set to decline by 4% this year compared with 2022 levels. The organisation stated that this reflected the ongoing challenging economic environment. The International Monetary Fund had recently downgraded its GDP growth outlook for the year to 2.8% from a previous forecast of 2.9%.

According to one of Strike’s executives, signs of a market slowdown were already visible at the end of last year: “There was some confusion due to several factors, including disrupted supply chains, the global economic slowdown, the risk of a global recession, high fuel prices, and the war in Ukraine.” Similar trends prevailed at the beginning of 2023. Although there was an upswing in the air cargo market at the end of March and the beginning of April, it was not sustainable.

Strike is already preparing for a future upswing

How to make use of this complicated time? According to the interviewee, the most important thing is to focus on amortising the losses, maintaining resilience, and sticking to the set goals as much as possible.

THE air cargo sector in Europe and other regions is currently facing a summer lull as the global economy slows down, resulting in a decrease in cargo volume and a decline in demand for air cargo services.

“This is partly due to the seasonality of the air cargo sector. It is usual that every summer, the number of flights and transportation capacity increases, along with the competition in the air cargo market. However, this year the market has stalled due to broader economic reasons, and this situation may continue for some time,” points out Andrius Antanaitis, Director of Business Development for Europe at Strike Aviation, an international air cargo company.

According to Antanaitis, the air cargo sector is among the first to experience negative economic impacts.

“Sea transport representatives are the first to face this, as they must plan orders over a longer time frame, followed by the air transport sector. This year, we are noticing a combination of several factors: more flights, increased cargo capacity on planes, and, at the same time, a decrease in cargo volume due to high inflation and consumption. Such circumstances put more pressure on GSSA service prices and business profitability,” Antanaitis said.

“Strike Aviation has always worked extremely closely with the airlines it represents, and we are currently working to strengthen these partnerships so that together we can react quickly to the changing market dynamics. We also place a high priority on regularly communicating with our clients and building strong relationships with them,” Antanaitis stated. According to him, a long-term development and a future-focused approach allow Strike Aviation to remain calm even during the market slowdown: “We have foreseen these complicated circumstances and are prepared for them. Last year was a record year for many – freight volumes increased, and service prices remained high after the pandemic. Now we are adjusting to a different dynamic and going through a certain pause in growth. The market cannot always be on the rise – it is normal that after a period of great profitability, a period of slowdown follows.”

“We have a clear development strategy and are not deviating from it. We take the current situation in the market as an opportunity to prepare for a breakthrough that will happen sooner or later,” Antanaitis emphasised.

Strike Aviation has significantly strengthened its position in Latin America this year. Since March, the company has been representing the Polish airline company LOT Polish Airlines in Mexico and Costa Rica, while in May, Strike began to service Air Canada cargo flights from Toronto to/from Costa Rica.

CARGO.ONE ANNOUNCES LANDMARK PARTNERSHIP WITH EASTERN AIR LOGISTICS

forwarders in close to 5,000 forwarding offices worldwide will gain the most user-centric instant access to its valuable capacity into China and across Asia Pacific. The connectivity cargo.one delivers as a 24/7 booking platform will help Eastern Air Logistics to grow its international bookings and remain front of mind with freight forwarders in all relevant markets. cargo.one guarantees an unbeatable digital buying journey to every booking customer.

“Our close collaboration with the cargo.one team over the past months stands out and forcefully boosts our trajectory to become the most innovative integrated logistics service provider. A clear benefit of partnering with cargo.one is the strength of its insights, proactive partnership support and the valuable best practices for digital that we are gaining for our first steps into digital distribution,” Jonathan Xu, General Manager of Logistics Solutions Business Dept. at Eastern Air Logistics, said.

EASTERN Air Logistics and cargo.one have announced a landmark partnership to bring extensive capacity from both China Eastern Airlines and China Cargo Airlines to the real-time digital booking platform.

The air logistics group will utilise cargo.one’s award-winning seamless digital booking experience, and gain access to its global footprint of many thousands of freight forwarders. cargo.one is already collaborating intensively to help guide and maximise the airline’s sales digitalisation journey. On the heels of cargo.one’s recent launch of cargo.one pro, the deal reflects a strategic focus by Eastern Air Logistics to utilise the most modern and globally relevant partners for its digital transformation.

Eastern Air Logistics harnesses the scale of China Cargo Airlines’ dedicated Boeing 777 and 747 freighter fleet as well as belly capacity in nearly 800 China Eastern Airlines passenger aircraft. The carrier offers 184 countries and regions and benefits from state-of-the-art air cargo depot facilities at major Chinese hub airports such as Shanghai, Beijing, Kunming, Xi’an and Wuhan, as well as a nationwide transportation network.

The addition of Eastern Air Logistics capacities into the cargo.one platform means freight

“It is vital that every freight forwarder globally has rapid and seamless access to the best capacity options for China. cargo.one and Eastern Air Logistics complement each other perfectly in offering end-to-end agility and a great experience that forwarders can depend upon”, Moritz Claussen, Founder & Co-CEO of cargo.one, added. “It is a real pleasure to work alongside Eastern Air Logistics as they leverage our substantial market force, and benefit from the only next generation multilateral marketplace, and one loved by forwarders”.

Both companies enjoy a proven track record of innovation-leading to drive growth in global freight forwarding markets. For example, cargo.one pro now empowers agents to conduct seamless digital agent-to-agent bookings globally in seconds. cargo.one will position Eastern Air Logistics to profit from the surge in digital forwarding in all markets.

Over the past year, cargo.one has rapidly expanded its participation in the Asia Pacific market. Partnering with national carriers and the top three airlines in countries including China, Japan and Singapore, cargo.one is the clear partner of choice for airlines in the region to go digital. cargo.one comprises an essential component of an airline’s efficient multichannel sales set-up, as well as supporting revenue and capacity management endeavours.

From Summer 2023, freight forwarders can soon book Eastern Air Logistics capacity using the cargo.one marketplace. Customers will enjoy access to important trade lanes between China and hubs including within Europe – Frankfurt, London, Budapest, Amsterdam, in North America – New York, Los Angeles, Toronto, and in Asia Pacific – Singapore, Kuala Lumpur and Ho Chi Minh.

Menzies Aviation raises the bar for aviation services with new net-zero targets

MENZIES Aviation has announced its net-zero commitment for scope 1, 2, and 3 CO2e emissions across the company by 2045. The transition pathway, and initiatives to ensure the company meets this target, will be announced following its submission and review of targets by the Science Based Targets initiative.

The commitments, which are published in its 2022 Annual Review & Sustainability Report, reflect the company’s refreshed sustainability targets following the launch of its ‘All In’ plan for a fair and sustainable future in 2021. The Menzies Aviation board are accountable for setting the company’s strategy with a commitment to ensure reporting against stated objectives is both accessible and transparent.

“While sustainability is the cornerstone of our business strategy, collaboration between airports, airlines and aviation services is what is most vital to truly creating a difference in how the industry addresses the threat of climate change. At Menzies we believe that there is a clear opportunity for the aviation services sector to follow our lead and work towards similarly ambitious targets to help achieve a sustainable future. Growth will always be important, but it must be both responsible and sustainable,” John Geddes, Chief Governance & Sustainability Officer & Company Secretary, Menzies Aviation, said.

“Collaborating with customers and partners is high on the agenda for the year ahead and we look forward to working with them as we look for opportunities to support them achieve their sustainability goals as well as supporting the wider industry to reach netzero targets.”

Stratos delivers two widebodies

AIRCRAFT investment specialist Stratos has delivered two widebodies, continuing a deal flow involving over ten widebodies to different buyers and lessees over the past 12 months.

Stratos completed the sale of A330-300 MSN1338 to an affiliate of DHL – the aircraft had originally operated at Thai International and was acquired speculatively last year without lease on behalf of one of Stratos’ leading European investors.

The aircraft spent the past number of months in maintenance works and was flown to Dresden, Germany for conversion to a freighter commencing in the coming months.

“We are delighted to have delivered this aircraft following extensive rework including engine repairs, landing gears as well as airframe clearance in a highly challenging environment from a supply-chain and MRO availability perspective,” John McHugh, VP Technical Stratos, said.

The second aircraft delivered was a 777-300ER MSN39232 to a major carrier in the Middle East in a transition from Cathay Pacific. The aircraft had operated since new at the Hong Kong flag carrier and was returned as part of a normal lease expiry before transitioning on lease.

“This redelivery and transition of a large widebody aircraft to an existing client of Stratos in a market where airlines are highly sensitive to cabin specification and maintenance condition is a testament to our placement credentials,” Cian O Shea, Marketing Director Stratos, added.

Founded in 2013, Stratos is a top 10 aircraft asset manager and leading independent aircraft investment specialist, providing acquisition, re-marketing, advisory and capital raising services to airlines, lenders and investors in large commercial aircraft.

Stratos provides services to assist airlines and investors to make the best financing choices for their fleet, and work with investors and manufacturers to find the right aircraft procurement or disposal opportunities in accordance with their respective investment strategies.

Chapman Freeborn appoints new Head of Sales and Commercial – UK

CHAPMAN Freeborn has appointed Andy Hutchinson as Head of Sales and Commercial – UK within the passenger department.

Hutchinson brings over 22 years of experience with 15 years in aviation and eight years in chartering, providing extensive and valuable knowledge to Chapman Freeborn.

Hutchinson will be leading and developing a new team in the UK market to establish the commercial passenger division, and increasing company growth and expansion. In his role, he will be heading up the new business sales strategy, with the goal of expanding into new markets and elevating Chapman Freeborn’s global profile.

His breadth of aviation insight, and experience, intertwined with a team of skilled brokers will provide passenger services to corporates, traveller services, sports associations, as well as high net worth individuals.

“I’m excited to be heading up the team in this period of expeditious growth. As an experienced sales leader with a proven track record of producing results in a highly competitive market, I will be implementing and delivering a sales strategy, while leading and developing the team to achieve our growth targets. Having a very talented team already in place, I’m looking forward to growing the department further and cementing ourselves as a market leader in the UK,” Hutchinson said.

Silk Way West Airlines selects L3Harris for new full flight simulator

SILK Way West Airlines has purchased a 777-200LR Interchange Reality7e Full Flight Simulator (FFS) from L3Harris. The FFS will provide a best-in-class training experience at the Flight Training Center in Azerbaijan National Aviation Academy.

The Boeing 777-F Reality7e FFS will include a Boeing 777200LR interchange to enable Silk Way West Airlines to offer training for its cargo operations, as well as the option to allocate excess training time to other B777-F and 777-200LR operators.

The simulator is planned to be installed and ready for training by September 2024. The new device will increase the training capacity of Silk Way West Airlines qualified and trainee pilots, enabling them to keep pace with future demand for aviation services in Europe.

“We are pleased to sign this agreement that will give us an invaluable advantage in optimising our crew cost. Moreover, having this simulator located in Baku brings more flexibility and convenience in planning of crew training. This is an excellent way to maximise our efficiency,” Mirsamed Movsumzade, CFO of Silk Way Group, said.

Founded in 2012 in Baku, at the heart of the Silk Road, Silk Way West Airlines operates hundreds of flights every month across the globe via its fleet of 12 dedicated Boeing 747-8F and 747-400F aircraft based at Heydar Aliyev International Airport.

On 28th April 2021, Silk Way West Airlines signed a strategic fleet expansion agreement with Boeing for the purchase of five new 777 Freighters, followed by a further agreement signed on November 10, 2022 for the purchase of two state-of-the-art 777-8 Freighters. Silk Way West Airlines also agreed the purchase of two A350 Freighters with Airbus on 28th June 2022.

EASTERN AIR LOGISTICS TAPS WEBCARGO TO FUEL GLOBAL GROWTH

expand their customer base with an easy and efficient way to price, book, and pay for airfreight in just minutes. Freight forwarders around the world have enthusiastically adopted eBookings; at least five large European countries already see 10% of their air cargo being booked via WebCargo.

EAL brings substantial capacity to China export and import routes, backed by its subsidiaries domestic and foreign sites and branches, including China Cargo Airlines, Eastern Airlines Express, Eastern Transport, Eastern Supply Chain as well as a number of branches at home and abroad. With 16 full cargo freighters from China Cargo Airlines, belly space of nearly 800 passenger aeroplanes from China Eastern Airlines and the airline resources backed by SkyTeam Alliance, EAL expands its global network to 1,088 destinations in 184 countries and regions around the world.

EASTERN Air Logistics (EAL), the logistics arm of China Eastern Airlines, the first all-cargo airline in China, has announced a new partnership with WebCargo by Freightos, the leading cargo booking and payment platform, to deliver eBooking and payments to global forwarders of all sizes.

Eastern Air Logistics is a modern integrated logistics service enterprise, headquartered in Shanghai, China. As one of the first batch of mixed-ownership reform pilot enterprises in China and the first in the civil aviation industry, EAL aims to become the most innovative aviation logistics service provider and is committed to providing safe, efficient, accurate, and convenient “integrated air and ground” comprehensive logistics services to customers worldwide. This partnership provides a seamless, end-to-end solution for customers looking to move cargo from the largest global export country to the West, beginning with ex-China coverage to North America, Europe and Asia, and from Europe to China. Eastern Air Logistics was first made available for bookings on WebCargo in June.

Through this partnership, EAL gains access to WebCargo’s extensive network of over 10,000 freight forwarding offices who already conduct thousands of bookings every day. WebCargo’s platform allows EAL to streamline their booking and payment processes, and

Airfreight is the preferred mode of transport for the global economy’s high value manufactured goods, such as semiconductors, pharmaceuticals, aerospace components and some foods. Therefore, smooth access to air cargo services between China, Europe and the United States is critical to global supply chains. With this new partnership, European and US-based freight forwarders gain exclusive access to EAL’s air cargo offerings through WebCargo, including WebCargo Pay, which enables modern payments by freight forwarders using both credit lines or pre-paid wallet functionality, where possible, across leading global airlines.

“Digital is the way forward. Our digital sales platform EOS, which laid the foundation for this cooperation, is built on top of technology initiatives such as the Shanghai Pudong Airport Smart Logistics. Partnering with WebCargo means EAL will continue to grow and expand its global customer base by providing forwarders seamless access to our considerable capacity exporting from and importing to Shanghai, and competitive rates”, Jonathan Xu, General Manager of Logistics Solutions Business Dept. at EAL, said.

“This partnership is great news for every freight forwarder. No other platform offers booking and payment access to EAL’s capacity”, Joyce Tai, Freightos’ EVP of Worldwide Partnerships, added. “Through EAL, we can offer our customers even more options for airfreight between China and the West, with credit lines and seamless wallet functionality that will get their cargo booked and paid for in minutes.”

Forwarders booking with EAL will continue to benefit from WebCargo’s combination of real-time rates and booking with online payments, helping forwarders to quickly book and reconcile payments with EAL, as well as with other carriers.

Cargolux becomes first airline to use sustainable aviation fuel at Luxembourg Airport

“We are excited to supply Neste MY Sustainable Aviation Fuel for this celebratory Cargolux cargo flight from Luxembourg Airport in cooperation with World Fuel Services. It is a great example of collaboration with partners across aviation’s value chain to make SAF available. It builds on earlier deliveries of Neste’s SAF to Cargolux at Amsterdam Airport and previous deliveries of SAF to airports via the CEPS pipeline system. It also highlights the importance of joint efforts in making more sustainable fuel options available at airports,” Alexander Kueper, Vice President EMEA from the Renewable Aviation business unit at Neste, said.

“As an airport, we are a facilitator and promoter of sustainability. Moreover, engaging our partners to opt for an environmentally friendly approach matches our top goal of getting net zero by 2030 for the airport infrastructure. The first flight with sustainable aviation fuel by Cargolux is a strong pledge to lower carbon emissions going forward and showcases their role as a major player in the industry by choosing a key lever to this goal. As the home base of Cargolux, we at Luxembourg Airport, highly appreciate Cargolux’s approach to environmental leadership for cleaner skies. We want to express our congratulations to Cargolux on the first-ever SAF flight from Luxembourg, which is a truly remarkable milestone in the country’s environmentally friendly aviation approach,” Alexander Flassak, CEO Luxembourg Airport, said.

CARGOLUX became the first airline to uplift sustainable aviation fuel (SAF) at Luxembourg Airport with the use of the fuel on a celebratory cargo flight. Neste MY Sustainable Aviation Fuel™ was supplied to the airport’s fuel storage using NATO’s Central European Pipeline System (CEPS) in cooperation with World Fuel Services and supported by Luxembourg Airport.

Cargolux used Neste’s SAF to operate a celebratory cargo flight from Luxembourg to Zhengzhou, the airline’s biggest hub in mainland China, marking the upcoming ten-year anniversary since Cargolux first started operating services to Zhengzhou in 2014.

The cooperation between the four companies highlights the importance of strong partnerships contributing to the aviation industry’s net-zero carbon emissions target by 2050. Sustainable aviation fuel is a key lever to meeting this target, and using existing fuel infrastructure will accelerate the availability of SAF at airports across the globe.

“This initiative marks a first for all involved, and I am proud of the smooth process we witnessed throughout from delivery to uplift. This is a milestone in Cargolux’s sustainable engagement and a significant step in our ambitious carbon reduction roadmap. We look forward to continuing this journey in collaboration with Luxembourg Airport, World Fuel Services and Neste, with whom we share a common vision for a sustainable industry,” states Richard Forson, Cargolux President & CEO.

London City Airport marks year of progress with 2022 Sustainability Report

LONDON City Airport (LCY) has published its 2022 Sustainability Report, which updates on the airport’s progress one year on from publishing ‘Above and Beyond: our Roadmap to a Sustainable Future’, with a quarter of the Action Plan commitments completed and over a third progressing as planned.

Critically, the report shows under our first sustainability pillar ‘Decarbonising our Airport’ that the airport has made good progress in recent years reducing the carbon emissions for which it is directly responsible (Scopes 1 and 2), and continuing to maintain its reduction in emissions in 2022. In 2022, LCY became one of only two UK airports to achieve Level 4+ in the Airport Carbon Accreditation programme, placing it at the forefront of positive climate adaptation in the aviation sector.

LCY continues to collaborate with industry partners on research to achieve zero emissions, including projects such as Project NAPKIN (New Aviation Propulsion Knowledge and Innovation Network), which has shown that London City Airport can develop the zero emissions flying market at a meaningful scale in the next decade. This work has led to more collaboration on hydrogen pipeline projects and analysis into the delivery of SAF with organisations such as the Thames Estuary Growth Board.

2022 initiatives under its sustainability pillar ‘Improving our Environment’ included launching our new £50,000 biodiversity fund to support local biodiversity projects. Most notably, the airport continued to take important steps to reduce waste and single-use plastics.

“A year on from the launch of our Sustainability Roadmap, I am pleased with the progress we have made in the past year across all three of our sustainability pillars,” London City Airport Chief Executive Officer, Robert Sinclair, said.

“The journey to achieve net zero emissions will take time and we face similar complex, challenges as other industries around the world, including developing our future energy strategy to power our buildings and how we provide infrastructure to support our airlines with the right fuels they will need over the next decade.”

“The first successful delivery of blended sustainable aviation fuel via the CEPS pipeline to Luxembourg Airport marks a significant milestone for World Fuel Services, underscoring our commitment to expanding access to renewable fuels. Through a collaborative effort with Neste and Cargolux, we have successfully transported blended SAF across multiple countries, showcasing our determination to provide reliable renewable fuel solutions. Improving access to sustainable aviation fuel is crucial for a greener future. As a leading player in the industry, we are proud to be at the forefront of this effort, working closely with our partners and stakeholders to make sustainable aviation a reality,” says Duncan Storey, vice president, supply aviation Europe, World Fuel Services.

Sustainable aviation fuel

SAF is a renewable aviation fuel providing a more sustainable alternative to conventional, fossil-based jet fuel. It is widely recognised as a key solution for achieving the aviation sector’s emission reduction goals. Using unblended Neste MY Sustainable Aviation Fuel™ reduces greenhouse gas emissions by up to 80% over the fuel’s life cycle compared to using fossil jet fuel. Neste MY SAF is produced from sustainably sourced, 100% renewable waste and residue raw materials, including used cooking oil and animal fat waste. SAF is blended with conventional jet fuel and works seamlessly with existing fueling infrastructure and aircraft engines.

AMERICAN AIRLINES CARGO DELIVERS WITH DIVERSE OFFERING

A leading player in the airfreight industry, American Airlines Cargo has built up a reputation through its efficient operations, diverse range of handled cargo, and commitment to customer satisfaction.

With a rich history and a focus on innovation to stay ahead of the curve, American Airlines Cargo has successfully positioned itself as a trusted partner for businesses worldwide.

Core operations

American Airlines Cargo operates an extensive network that spans across the globe. Its cargo operations cover both domestic and international destinations, connecting businesses to key markets efficiently.

Handling a wide array of cargo, including perishables, pharmaceuticals, automotive parts, live animals, and specialised shipments like oversized and dangerous goods, the airlines is equipped to tailor its offering to customers.

“We’ll take it all. We don’t discriminate,” Greg Schwendinger, American Airlines Cargo President, said. Adding, “As long as it fits within our guidelines, of course.”

By catering to diverse cargo requirements, American Airlines Cargo accommodates the needs of various industries and ensures timely delivery of goods.

“We had a lot of momentum coming into the back half of last year and the early part of this year. A lot of momentum around our operations,” Schwendinger said.

“We’re seeing really good performance around live animal shipments and other areas that are a bit more resilient in this environment we’re in, and we’re continuing to look for opportunities.”

American Airlines Cargo also offers specialised services such as temperature-controlled shipping solutions for pharmaceuticals and perishable goods, ensuring the integrity of sensitive cargo throughout the journey.

“There’s all the traditional things that we carried before, like flower season, Valentine’s Day. They’ve all got peaks,” he said. “In perishables, there’s an opportunity for us do some customisation around our product.”

To accommodate this space in the market, as a CEIV certified

airline, American has a network of specific hubs that are quite versed and prepared to handle all temperature-controlled business, providing cold chain solutions to all customers.

Delivering for customers

Having taken the helm of American’s cargo operations during the pandemic, Schwendinger has been witness to some fairly rapid change in the market, noting that there is now a bit of a reversion to something more normal.

This fluctuation has made it challenging to focus on long term strategies, but that hasn’t disctracted American from its focus on several key areas to enhance its operations and deliver superior service to its customers.

One area of emphasis is the implementation of advanced tracking and monitoring systems. Real-time visibility allows customers to closely monitor their shipments and make informed decisions.

Additionally, the airline has an emphasis on streamlined processes to expedite cargo handling, reducing transit times and enhancing overall efficiency.

Through continuous improvement initiatives and rigorous quality control, American Airlines Cargo ensures that cargo is handled with utmost care and delivered in pristine condition.

“Our operational performance is performing as good as it’s been in the last couple of years,” Schwendinger said. “We’ve made a lot of conscious effort to drive better performance on the things that we can control.”

“We can’t control weather, but we can certainly control the way in which we’ve built up and breakdown in our warehouse, so operational performance will continue to be a hallmark of what American is about and we’ll continue to deliver the best.”

To that point, American strives to provide an exceptional customer experience. By offering flexible shipping options, reliable transit times, and efficient cargo handling, the airline ensures that customer requirements are met with precision.

Its dedicated customer service team provides personalised assistance and proactive communication to address any queries or concerns promptly.

“We have a really clear roadmap in terms of how we’re looking at improving the customer experience; all the way from booking to billing,” Schwendinger explained.

Sustainable vision

Recognising the need to face one of the most challenging elements of the airfreight industry, American Airlines Cargo is actively engaged in sustainability initiatives, implementing fuel-efficient practices, reducing emissions, and exploring alternative energy sources to contribute to a greener future.

“At American, we’ve made a tremendous amount of progress in the last couple of years around our enterprise airline wide sustainability programme,” Schwendinger highlighted.

Citing one of the main steps taken by American to reduce their impact on the environment, Schwendinger pointed to the airline’s partnership with Bio Nature Plastics. This allows them to leverage biodegradable plastics within warehouses, presenting an alternative to more damaging wrap that was traditionally used on cargo.

While traditional plastics would take 1,000 years to biodegrade, the product used by American only takes five to ten years, which is why the airline chose to utilise 30,000 pounds of this material over the old packaging. To put that in context, this was equivalent to saving around 6.4 million water bottles worth of plastic.

By 2030, American hopes to have reduced its jet fuel usage by 10% and by 2035, it hopes to cut greenhouse gas emissions by 40%. This will help ensure the airline is on the path to net zero by 2050.

“The things that we’re doing around aircraft investments allow us certainly to make a lot of progress towards fuel efficiency and that first step around moving towards alternatives to jet fuel,” Schwendinger said.”We’re really excited about it is something we’re really passionate about. We talk about it at all levels within American regularly.”

Digital world

Digitalisation is a pivotal factor shaping the future of cargo

operations, and American Airlines Cargo recognises its significance. The integration of digital platforms enables seamless coordination between stakeholders, reduces paperwork, and improves operational visibility. By leveraging data analytics, the airline can optimise routes, allocate resources efficiently, and minimise environmental impact.

Looking ahead, American Airlines Cargo envisions further enhancing its operations by embracing emerging technologies and adapting to evolving customer needs. Automation, data analytics, and artificial intelligence will play crucial roles in improving operations, reducing costs, and delivering even greater value to customers.

“It’s impacting more than just than the operational side of the business. It’s impacting everything from operational performance to our ability to drive new revenue to build a better experience for the customers,” Schwendinger highlighted.

“There’s three things we’re really focused on doing. The back part of last year, we moved forward with our execution of digital distribution. We made some enhancements to our AACargo.com platform but also partnered with WebCargo and cargo.One, so we’re looking to expand our digital distribution into other geographies and potentially with other players in the space.”

“ We have a really clear roadmap in terms of how we’re looking at improving the customer experience; all the way from booking to billing,”