ACW 28th November 22

Driving the automotive industry forward

CHALLENGE AIRLINES CARRIES A PIECE OF HISTORY

“ 320 years ago, these valuable Flemish Tapestries made their way by ship from Belgium to Malta. We are honoured and delighted to have been chosen to return them again to their home in St John’s Co-Cathedral, Valletta,” Yossi Shoukroun, CEO of Challenge Group, said at a ceremony to celebrate the transportation of the Flemish Tapestries to Malta from Belgium, where the historic masterpieces had undergone meticulous and careful restoration.

In a similar vein, their return journey was planned in collaboration with Maltese government departments and the private sector, with the same dedication and attention to detail that characterises all of Challenge Group’s logistics services. For Challenge Airlines, the transport of these priceless tapestries signified both a celebration of history as well as the creation of a new historic moment: the valuable cargo was the first to be carried by the airline on its inaugural flight, having been awarded its Air

Operator Certificate (AOC) by Transport Malta on 1st November. As a mark of respect and in honour of the occasion, Challenge Airlines provided both the flight, as well as logistical support.

“It is a pleasure for us to see that, with a strong intervention from our Embassy in Belgium, through Clint Tanti and the rest of the employees, we were able to bring these tapestries to Malta without any costs for the Maltese Government. Above all, these can now be enjoyed by the public and the tourists who choose to visit the St. John’s Co-Cathedral in Valletta,” Minister for Foreign and European Affairs and Trade Ian Borg, said.

“These tapestries have been a property of the Co-Cathedral for 350 years. The finished restoration of these tapestries is certainly a step forward for the wider appreciation, as well as a unique experience for those who will see them in the coming years,” Minister for the National Heritage, the Arts and Local Government Owen

Bonnici said.

For Challenge Group, the Flemish Tapestries coincidentally have additional significance. “Not only do we have the utmost respect for this priceless and unique cargo but, in a way, these tapestries also reflect Challenge Group, since they depict Christian art scenes from Jerusalem, Israel, and were carefully woven over a period of four years in Belgium for Grand Master Fra Ramon Perellós y Roccaful of Malta. Hence, they combine the three countries where Challenge Group has set up hubs and for which we hold Air Operator Certificates.” Yossi Shoukroun added.

Challenge Airlines, registered as 9H, owns a fleet of two B767-300ERs, each capable of uplifting a payload of 60 tonnes. Ten pilots are stationed at the group’s headquarters in Malta, ready to operate regular flights between Liège, Tel Aviv, Sharjah, New York, and the Indian Sub-Continent in the coming future.

TURKISH CARGO SELECTS...

has announced a global partnership that brings Turkish Cargo, the Turkish national carrier’s cargo division, on board ...

Sai Raj partners with Joloda Hydraroll to optimise air cargo loading/unloading operations

Turkish Cargo selects cargo.one to help fuel its global growth ambitions

CARGO.ONE has announced a global partnership that brings Turkish Cargo, the Turkish national carrier’s cargo division, on board.

JOLODA Hydraroll has partnered with Sai Raj, a fibreglass moulder, vehicle body manufacturer and conversion specialist in Kenya.

For Sai Raj’s long-standing customer, AirFlo Kenya, Joloda Hydraroll has supported the development of a new air cargo trailer that can be loaded and unloaded far more efficiently. The process is faster, safer and doesn’t require forklifts.

Bespoke solution

AirFlo Kenya is a specialist provider of logistics solutions for perishables, such as fresh cut flowers, vegetables, and fruits. In early 2022, the company approached Sai Raj with the request to build a new air cargo trailer to transport pallets from the warehouse facility to Airside operations at Nairobi airport, where they would be unloaded onto the aircraft. AirFlo Kenya wanted to make the loading and unloading process safer and more efficient compared with traditional loading and unloading practices reliant on forklifts or pallet trucks.

Sai Raj decided to partner with Joloda Hydraroll to create a bespoke rollerbed vehicle to meet the brief. Joloda Hydraroll’s Pneumatic Roller Track (PRT) solution utilises rise and fall rollerbed technology, and is integrated into the trailer’s floor, customised to fit its length.

Efficiency gains

The addition of Joloda Hydraroll’s solutions and loading/unloading expertise has enabled Sai Raj to build and deliver its first air cargo trailer – named Cargotuff by Sai Raj – to AirFlo Kenya. With it, operators can transport up to four ULDs at one time, with the ability to load and unload in a simple and speedy manner. The rollerbed floor is pneumatically operated, meaning air cargo can simply be rolled in and out of the trailer without the need for forklifts.

“We got in touch with Joloda Hydraroll because

their customer service was extraordinary, and the pricing was competitive. We thought the installation stages were going to be complicated, but we were made to feel at ease. The installation was complete in just three days, which allowed us to keep operational downtime to a minimum,” Amar Bahra, Director at Sai Raj, explained.

Since its delivery in May 2022, the trailer has been in use daily. The team at AirFlo Kenya have found that loading and unloading the trailer is now much quicker. With the rollerbed loading solution, the process is also safer as the pneumatic rollers are automatically lowered when the trailer is in transit.

New revenue opportunities

Working with Joloda Hydraroll has opened new avenues for Sai Raj. “By working with Joloda Hydraroll, we can now provide new solutions to other supply chain businesses; and we have already started to have these conversations,” Amar said.

Additionally, with the logistics market in Kenya experiencing accelerated growth, Amar sees this project as a sign of things to come: “We’re proud to provide such a solution in Kenya – it’s been a very positive journey for us. There’s a lot of scope for growth in logistics in Kenya, as well as throughout Africa, and by partnering with Joloda Hydraroll, we already have a head start in meeting such demands.”

“We’re thrilled to have supported Sai Raj – our first customer in Kenya, Central East Africa – with its new air cargo trailer. Kenya, like many countries in Africa, has a growing and demanding logistics market, exporting masses of horticultural produce into Europe,” Arjan Nobel, Global Sales Manager, Joloda Hydraroll, concluded. “The addition of Joloda Hydraroll’s Integrated Rollerbed Loading System means the air cargo trailer can be loaded/unloaded with ease. The whole process is safer and faster.”

Flying to more countries than any other cargo airline, the combination of Turkish Cargo’s capacities and cargo.one’s seamless digital booking experience now offers freight forwarders worldwide a valuable new proposition. With 40 bookable airlines on board, cargo.one has now secured close to 50% of global air cargo capacity for instant booking on its platform.

Turkish Cargo is a major international operator, achieving exceptional growth across market segments, flight network and transported tonnage in recent years. In 2010, the carrier was ranked 33rd in the world, and has risen steadily to 14th in 2017, and now 5th globally in 2022. Investments in its state-ofthe-art SMARTIST, Istanbul mega cargo hub, sustainability programmes and digitalisation strategy has helped Turkish Cargo increase business volumes to 9.1 million tonne kilometres during 2021.

Within weeks, cargo.one customers

with recent investments in its product range, including the introduction of TK URGENT. cargo.one will support the airline’s teams to further enhance the offer quality and customer experience for online bookings.

“We are delighted that with Turkish Cargo, yet another major cargo airline trusts in cargo. one as a core component of its digital strategy”, Moritz Claussen, Founder and Co-CEO of cargo. one, said. “Turkish Cargo is a powerhouse in the market – we now offer customers greater digital access to the largest network worldwide, across all continents. This unlocks vast potential for forwarders to win more shipments and switch more to benefit greatly from digital booking.”

“cargo.one has always been built with forwarders for forwarders, and Turkish Cargo has always been among the top requested airlines since day one. The airline certainly adds substantial capacity to our platform for forwarders in all corners of the world.

“Turkish Cargo is one the most notable growth stories in air cargo in recent years. We’ve always known that cargo.one is able to further accelerate that growth, and so it is exciting to now have an integral role in helping Turkish

worldwide can book capacities across Turkish Cargo’s extensive network of more than 340 destinations, 100 of direct cargo – including important centres of commerce in North America, South America, Europe, and Asia. Already flying its fleet of 20 freighters to more international direct cargo destinations than any other airline, Turkish Cargo plans to increase this from 100 to 120 by 2025. Freight forwarders can now benefit from the best marketplace booking experience for Turkish Cargo capacities.

“Turkish Cargo’s partnership with cargo. one will be expanding our digital footprint and improve sales capabilities. We, as Turkish Cargo, are firmly on a trajectory towards our target to become one of the top three air cargo brands in the world in line with the strategic vision. We believe that cargo.one will support us to drive this growth and further raise the bar for our customers, with enhanced innovation standards for delivering the best new digital alternatives to empower success,” Adnan Karaismailoğlu, Senior Vice President of Cargo Business Development and Organization at Turkish Cargo, said.

Turkish Cargo is achieving its impressive growth by prioritising customer value and leveraging digital transformation to enhance its reliability and customer service. The partnership with cargo.one reflects an ongoing development of its sales capabilities in line

Cargo to secure that Top 3 spot globally.”

“This is great news for every freight forwarder – no other platform offers more airlines for live booking than cargo.one, making it not just the most user-friendly, but also the most useful platform out there”, he added. “We have proven that cargo.one can generate new market share and guarantee the best customer experiences for every size and type of air cargo airline. In this way, we are part of an industry-wide levelling up of digital capabilities.”

cargo.one is expanding its available capacity at a rapid pace thanks to velocity on both sides of the marketplace. During 2022, it has launched many additional global airlines and airline groups, adding significantly to capacity across all three of the most important air cargo markets: Europe, North America and Asia.

Turkish Cargo is a strong example of an airline that is driving ambitiously towards the full potential of digital air cargo sales. cargo.one’s recent industry-wide Digital Sales Trajectory Report (conducted with BCG) found that participating airlines identified significant value creation from digital distribution – driven by a broader reach and incremental revenue, better revenue management, reduced cost of sale, and new digital-first products. cargo.one works with airlines such as Turkish Cargo to maximise on such elements in order to deliver accelerated sales growth and sustainable competitive advantage.

DFS appoints Andriy Blagovisniy Project Cargo Sales Manager

DIPLOMAT Freight Services has announced that Andriy Blagovisniy has joined the company as Project Cargo Sales Manager.

Blagovisniy has worked in the aviation and air charter business on the transportation of oversized and super heavy cargoes for 24 years and has managed air shipments using the AN-124, AN-225, and AN-22 aircraft worldwide as Commercial Director, Antonov Airlines.

“I have enjoyed delivering high-quality and effective solutions for the air transportation of the oversized project cargoes for many years,” Blagovisniy said.

“In my new role at DFS I look forward to new meetings with customers and industry colleagues to implement new, interesting, and ambitious projects and develop this business for the company.”

“We welcome Andriy as Project Cargo Sales Manager into the DFS family and he comes with a proven track record in having moved outsized and project cargo over the years,” Daimen van Blerk, Managing Director, DFS UK, said. “We wish Andriy great success and the best of luck in continuing to grow DFS business in the air charter and project cargo space.”

Avia Solutions Group encourages cooperation at its first group-wide aviation safety forum

AVIATION safety is the most important part of the industry. To encourage and lead better cooperation between airlines, and other aviation business companies regarding aviation safety, Avia Solutions Group has initiated it’s first group-wide aviation safety forum.

Aviation safety managers shared the best practices of the aviation safety performance monitoring systems, and the latest and most important aviation safety issues.

“Safety is a fundamental aspect of the aviation industry, that is an indisputable fact, so bringing together the aviation safety managers of passenger and cargo air carriers as well as maintenance, repair and overhaul, ground handling and aviation training organisations to foster a community, is

equally as important. I’m very glad to see that our group companies used the opportunity and have actively participated in the forum, shared their experiences, and discussed the most relevant aviation safety issues and challenges with each other. This way, we are continuously improving internal processes of aviation safety management, increasing available and easily accessible knowledge,” Ugne Maciejauskaite Aviation Safety Manager at Avia Solutions Group stated.

“We can ensure a satisfactory level of safety by continuously promoting safety culture in the organisation, involving our people in daily safety activities, and sharing our experience, expertise, and lessons learned not only between safety specialists but also throughout every layer of the organisation.”

DRIVING THE AUTOMOTIVE

TThe air cargo industry has experienced unprecedented change over the past few years due to a number of factors, including the Covid-19 pandemic, supply chain issues, Brexit, driver shortages and the war in Ukraine. These extraneous factors hit some sectors harder than others but one that took a significant knock was the automotive industry.

As a consequence, the air cargo sector has had to adapt to a new set of priorities at a time when the shift to electric vehicles (EVs) was already altering historically ingrained practices. Thankfully, air cargo already requires an agile approach and this has enabled companies, like time-critical logistics specialist Priority Freight, to adapt quickly to ensure the needs of the industry and the end user are satisfied, despite the challenges.

Challenges facing the industry

The pandemic acted as a catalyst for some issues the industry was already facing, while also revealing some new ones. “We are currently contending with a challenge that is arguably overtaking the semiconductor shortages as the biggest supply chain issue for automotive – the shortage of wiring looms due to the Ukraine conflict,” Steve Downing, Head of Group Projects at Priority Freight, said.

With the ramp-up to an electric future in full swing, the air logistics industry is facing ongoing challenges such as the transportation of lithium-ion batteries, which are large, heavy and classed as dangerous goods. For safety reasons, they often cannot be stacked and this, along with their density, means few can be transported at any one time. The air cargo and automotive industries are working together to find ways to ensure a safe and cost-effective method of shipping these complex but vital components.

Priority Freight was recently commissioned to move 160 tonnes of lithium-ion electric vehicle

batteries from China to Europe as a matter of urgency to prevent a halt in the production line. Interestingly, with the well-documented global shortage of semiconductors, we have seen a drop off in their movement by air. Whether this will continue to decline as manufacturers start to make their own semiconductors remains to be seen, but our feeling is that reliable internal production is still years away.

Supply chain integrity

For now, demand for air cargo remains buoyant and customers who choose a freight forwarder with an agile and flexible approach are ultimately the ones most likely to keep their production lines moving.

Recently, Priority Freight was tasked with transporting two tonnes of automotive parts from China to Spain in just 36 hours. The cargo needed to be collected from two different Tianjin-based manufacturers which, at the time of the booking, were closed and had no idea the emergency transport was already being organised.

Their team prepared the relevant paperwork needed for customs and were ready with two vehicles to pick up the parts as soon as the Chinese manufacturers started work for the day, transferring to Shanghai airport (PVG) for the first suitable flight.

“To ensure the goods would arrive in Spain by the following evening, we knew the only solution would be airfreight to Frankfurt (FRA) and then charter a flight to Madrid (MAD).

Priority Freight having its own regional office at FRA airport played a big part in the success of the operation. We secured a direct flight to FRA for all two tonnes of cargo, where the team was able to expedite customs for a re-route to Stuttgart airport (STR). There, the chartered SAAB 340 aircraft was waiting to fly to MAD,” Downing explained.

“By the time our Spanish customer had woken up, all cargo had been loaded from both

AUTOMOTIVE INDUSTRY FORWARD

loading points and the vehicles were able to make the deadline to PVG. The cargo departed China and arrived in FRA less than 36 hours after the initial call came in. In Frankfurt, the cargo was divided in two – with the urgently required goods transferred to MAD via air charter from STR, and the less urgent components followed via road freight. This move, initiated by Priority Freight, saved €8,000 in freight costs for the client.”

Current state of play

“We saw an initial increase in number of air charters being organised as a result of Brexit and the pandemic and, while we expected them to decrease again, the levels of air charter jobs have increased further. This is in part due to the ongoing supply chain challenges that have increased the reliance on air cargo for urgent shipments. Downtime in automotive manufacturing is costly and air cargo is often the only option for original equipment manufacturers that utilise the just-in-time production model,” Downing stated.

Air cargo rates, although slightly lower than at their peak, remain high due to the ongoing lack of new aircraft – those that are in operation are over capacity, and there is also the rise in crude oil barrel pricing and the lack of truck drivers to move goods via road, especially within Europe. More recently, the inability to use Russia / Ukrainian airspace has meant that many flights are not able to take the most direct route to a destination, contributing to a weakened supply chain and higher rates to cover the necessary detours.

Some speculate that rising inflation may lead to a reduction in demand for air cargo as finance departments tighten their belts, but for the automotive sector at least, air cargo costs are always more cost-efficient than production line stoppages.

“We think that the demand for air cargo from the automotive industry will be very much driven by the consumer. While the demand is there, OEMs will scale up their logistical needs and Priority Freight will respond accordingly,” Downing said.

The air cargo outlook for the automotive industry

The big question most manufacturers will be asking is, what is consumer confidence likely to be over the next 6-12 months, given recent developments in the global economy and geopolitical landscapes? “We think this will be a key driver on how the OEM’s will plan their logistical requirements,” Downing added.

Sustainability is high on the agenda for all manufacturers and they will, without doubt, be looking to lessen their carbon footprint by engaging with logistical providers that have smarter and cleaner methods of air logistics, for example, aircraft that use Sustainable Aviation Fuel (SAF). Environmentally it is more sustainable, but the economic case is less clear. Even with the current exceptionally high price of petroleum-based aviation fuel, SAF can still cost three to four times more.

“Our view at Priority Freight is that the demand for air charter will continue to increase – even once the semiconductor and wiring loom issues have been resolved – not least because of electric vehicle production ramping up. The type of goods we transport may change but the demand for air cargo is likely to remain high as we continue to meet the needs of a rapidly evolving and globally distributed automotive sector,” Downing concluded.