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WORLD AIRPORTS .COM ACW Digital is sponsored by FREIGHTERS.COM
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The weekly newspaper for air cargo professionals No. 1,205
7 November 2022
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Collaborative communities are vital for a successful air cargo hub ...
SAUDI INVESTMENT MINISTRY LAUNCHES KEY SUPPLY CHAIN INITIATIVE
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INSIDE
FEDEX INTEGRATES WHATSAPP ...
FEDEX Express is enhancing its services with delivery notifications and personalised options now available on WhatsApp. The integration... PAGE 2
UNIPART LOGISTICS WINS A ...
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he Saudi Ministry of Investment (MISA) signed 11 investment agreements with leading companies, as it launched the Global Supply Chain Resilience Initiative at the Future Investment Initiative (FII6). Minister of Investment Khalid Al-Falih was a lead participant at Saudi Arabia’s premier international investment forum, sharing global economic and investment perspectives alongside leading CEOs and government leaders and other experts from around the world. MISA officials also provided further details on the Global Supply Chain Resilience Initiative (GSCRI) launched on 23rd October to attract supply chains to Saudi Arabia in strategic sectors where the Kingdom has a competitive advantage. “The Kingdom offers a robust logistics infrastructure across industrial cities, airports and ports, with ambitious expansion plans underway as part of the national transport and logistics strategy. The country’s digital infrastructure has witnessed significant progress, with widespread high-speed internet coverage and 5G now available to nearly 80% of the population,” Saudi
UNIPART Logistics has won a multi-year contract to provide in-plant logistics services to Airbus. Under the contract, which... Arabia’s government said while announcing the GSCRI. A central pillar of the National Investment Strategy launched a year ago, GSCRI aims to enable global investors to create low-risk, lowcost and low-carbon supply chains leveraging the Kingdom’s natural resources, strong logistics infrastructure and untapped potential. In its launch phase, the initiative aims to attract over $10 billion of industrial and service investments in global supply chains to the Kingdom in its first two years. MISA facilitated nearly a dozen investment agreements across aerospace, biotechnology, education and other sectors, illustrating sustained confidence in the Kingdom as a world-class investment destination. On the final day of FII6, MISA facilitated two agreements in the technology sector. An agreement was signed between the Royal Commission of AlUla and US technology mega-giant IBM to help implement AlUla’s Smart City policy. MISA also signed an agreement with Brazilian tech company Ocellott, aimed at collaborating to develop an innovative propulsion battery system for future
projects of electric vehicles. Other international partners in these agreements included: aerospace company Boeing and space training company Orbite; tech companies IBM and Ocellott; biotechnology companies Gingko and Illumina; Taihan Cable and Solution; ESSEC Business School and Global School Management; SAFANAD and BTG Pactual; Eros Media. During FII6, MISA officials participated in panel discussions over a three-day period. Dr Sara Altair MD of Biotech and Pharma sector at MISA, took the stage to share her perspective on the most fascinating biotech advancements fueling innovation in preventative care and personalised medicine. MISA’s MD of the GSCRI Asaad Aljomoai also shared his perspective at the ‘Surviving Supply Chain Shocks’ session. On the last day of FII6, MISA’s MD of the Real Estate Sector Fahad Alhashim took the stage at Roshan panel to discuss how companies and governments can respond to constricted supply chains, along with other critical issues about economic sustainability and supply chains.
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SAUDIA CARGO CEO RE-ELECTED ...
SKYTEAM Cargo, the global cargo alliance, has announced the re-election of Teddy Zebitz, the CEO of Saudia Cargo, as the chairperson of the ... PAGE 6
LOGITRANS EXHIBITION IS AN ...
The international logitrans transport logistics exhibition will open its doors on 16-18 November at Yenikapı Fairground in Turkey. The event ... PAGE 9
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FedEx integrates WhatsApp notifications into digital e-commerce delivery solution FEDEX Express is enhancing its services with delivery notifications and personalised options now available on WhatsApp. The integration of one of the world’s most popular instant messaging apps into the FedEx Delivery Manager International (FDMi) e-commerce solution is being launched in nine markets in the Asia Pacific, Middle East and Africa (AMEA) regions – Australia, Hong Kong, India, Indonesia, Malaysia, New Zealand, Philippines, Singapore and the United Arab Emirates (UAE).
FDMi is an interactive e-commerce delivery solution that provides customisable delivery options and alerts. e-tailers using the solution can offer their residential customers the ability to pick the timing and location of their deliveries to fit their schedule – and change the delivery address when the shipment is in transit – giving them extra flexibility at no extra cost. The WhatsApp instant messaging social media platform has two billion active
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monthly users globally. More than 80% of the population over the age of 16 in Hong Kong, India, Indonesia, Malaysia, Singapore and the UAE use it, making it the most preferred social media platform in each market. In Australia and New Zealand, the WhatsApp platform is used by around 40% of the population and by more than one in four Filipinos. With such high penetration in each market, the integration of WhatsApp into FDMi makes it a more effective solution for e-tailers to offer to their shoppers. Recipients expecting inbound deliveries receive a WhatsApp notification from FedEx upon shipment pickup. FedEx uses a META verified WhatsApp business account which helps mitigate the rick of recipients responding to scams perpretrated on WhatsApp using the FedEx brand. Recipients can message and chat with FedEx directly, as well as access tracking status and re-direct options with the click of a
button directly in the WhatsApp chat window. “We know that consumers have an increasing preference for personalised delivery services. Integrating social platforms of choice like WhatsApp into our digital solutions gives an added boost to the convenience we can offer to e-commerce customers,” Salil Chari, Senior Vice President, Marketing and Customer Experience, AMEA, said. The integration of WhatsApp into FDMi is a win-win for all participants in the e-commerce ecosystem. In an increasingly competitive online marketplace, FDMi helps e-tailers, especially SMEs, provide a differentiated service offer. Customers get more peace of mind through the traceability of their package on their mobile device as well as an enhanced online shopping experience. It also helps FedEx minimise delivery attempts to recipients who may not be at home.
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28/10/2022 16:38
NEWS
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Unipart Logistics wins a major logistics contract with Airbus UNIPART Logistics has won a multi-year contract to provide in-plant logistics services to Airbus. Under the contract, which goes live early in 2023, Unipart Logistics will be responsible for the receipt of in-bound products from around the globe, warehousing, kitting and line feed logistics, to Airbus’ onsite wing assembly lines in both Broughton and Bristol. “We are very pleased to enter into a long-term partnership with Airbus,” Simon Wheelton, Aerospace and Defence Sector Director, Unipart Logistics said. “Our foundation of process excellence, engagement and sustainability closely aligns with Airbus’ and, when combined with our world class health and safety standards and the application of digital solutions, enables us to deliver Airbus’ vision for logistics which has sustainability, safety, quality and innovation at its heart.” “I am truly excited about the potential for this new supply chain partnership and delighted that Airbus has chosen to work with a transformation partner who has the capability, the culture and the innovation to support a step change in operational performance to achieve its own exciting production targets,” Ian Truesdale, Unipart Logistics Managing Director, said.
CargoAi announces strategic technology partnership with Chain.io
CARGOAI and Chain.io have announced a strategic partnership that will supercharge the freight forwarder experience with seamless integration. The partnership will allow most large and medium-sized freight forwarders on Chain.io’s network to easily connect to CargoAi’s platform to make instant bookings to the GSSAs and airlines, while remaining on their own transport management system. “These functionalities were requested by most of our existing users. We are delighted to solidify this strategic partnership with Chain.io to enable new efficiency gains and drastically improve the visibility of our airline partners around the world,” Matt Petot, Founder and CEO of CargoAi, said. The CargoAi platform provides a simple end-to-end interface for freight forwarders to
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make quotes, schedules, bookings, shipments, tracking, purchase orders, as well as reporting capabilities. With the addition of Chain.io, users can now complete the same experience within their TMS system, without navigating between multiple airline websites or making different phone calls. “Our partnership with CargoAi extends the powerful network we offer to freight forwarders,” Brian Glick, Founder and CEO of Chain.io, said. “Technology is more impactful when it doesn’t live in silos.” The partnership will commence with rates, capacity, eBooking and tracking information as well as CO2 calculation, bringing modern capabilities to the TMS, and enabling airlines and GSAs who are live on CargoAi to be directly accessible and visible.
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28/10/2022 16:45
NEWS
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Saudia Cargo CEO re-elected to chair SkyTeam cargo alliance SKYTEAM Cargo, the global cargo alliance, has announced the re-election of Teddy Zebitz, the CEO of Saudia Cargo, as the chairperson of the SkyTeam Cargo Executive Board for another consecutive term. The appointment was endorsed at their recent meeting in London, which is composed of the cargo executives of all cargo alliance members and oversees SkyTeam Cargo’s global strategy. With his re-election, Zebitz will continue to strategically lead the SkyTeam Cargo board for a further period of two years. “I am honored to have been re-elected to the Cargo Executive Board and look forward to paving the path for SkyTeam Cargo’s success. We are proud of how much we have accomplished in the past two years, and we have set strategic goals in place for the near future that will further elevate SkyTeam Cargo’s global position as the largest cargo alliance. We will continue to empower our people, while collaborating with our customers and partners, providing innovative and customised solutions to help them achieve their goals and realise their ambitions,” Zebitz said. With over 40 years of global industry expertise, and before leading Saudia Cargo, Zebitz has worked across several markets such as China, Southeast Asia, the United States, and Europe. SkyTeam Cargo’s Executive Board will continue to benefit from his extensive leadership background gained from his previous experience in executive roles at SAS and Emirates Airlines.
ACS’s French operation sees impressive bounce-back growth
AIR Charter Service’s (ACS) French operation, based in Paris, has seen an impressive first half to the year, up by 91% on the same period in 2021. “We have seen a real return to business for all of our three main divisions following the past couple of years that have been heavily affected by the pandemic,” Alexandre Busila, CEO of ACS France, said. “The passenger side of our business has come back really strong – our private jet division has seen almost triple the amount of revenue of last year, with many clients choosing larger aircraft and longer trips as the restrictions have eased all over the world. The figures are up by 94% on 2020 and have surpassed pre-pandemic levels, with a 38% increase compared to the first half of 2019. Our group charter division has seen an impressive growth of 71% on last year’s figures.” “Cargo flight volumes have also seen fantastic growth on all of the previous three years – 78% up on 2021 and currently 20% above pre-pandemic levels. After the initial spike in 2020 of shipping PPE, we are now back to charters for automotive parts, project logistics, livestock, textiles and even perishables.” “The office has gone from strength to strength over the past 12 months or so – we made some major changes, which involved some difficult decisions, but that were for the long-term benefit of the company. Since Alex and his new leadership team have been in place, we are now in good shape to look to the future and to expand the team. We have plans for further investment in France and we feel that Alex’s success has laid the groundwork for this,” Justin Bowman, Air Charter Service’s group CEO, added.
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31/10/2022 14:39
NEWS
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New figures highlight collapse of UK exports to the EU Big Four
NEW export figures from the UK government’s Office for National Statistics (ONS) paint a stark picture of the reality of post-Brexit trade, showing how UK exports collapsed to the EU’s Big Four. International delivery expert ParcelHero found that the anticipated increase in trade beyond Europe post-Brexit also failed to materialise. “UK exports of goods and services to four of our largest traditional trading partners look grim. Starting with Germany, Britain’s combined exports fell from over £56 billion in 2019 – the year before the UK left the EU
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– to £50.3 billion in 2020, a collapse of over £6 billion. Worse still, they fell even further in 2021, to £47.3 billion. Comparing the results for 2019 and 2021, that’s a slump of almost £10 billion in exports to Germany alone,” David Jinks, ParcelHero’s Head of Consumer research, said. “Exports to France tell a similar story. Total exports of goods and services to the UK’s nearest continental neighbour totalled £40.3 billion in 2019. In 2020, they slumped to £31.8 billion, a collapse of over £8.4 billion. In 2021, they picked up falteringly to £32.3 billion, but that’s still over £7.9 billion shy of where they
had been pre-Brexit.” “Total exports to Italy suffered a similar blow. In pre-Brexit 2019, they stood at £17.8 billion. In 2020, they fell to £14.5 billion and slumped still further, to £14.2 billion, in 2021.” “For those hoping for more warmth from export figures to Spain, there is further disappointment. In 2019, before Brexit struck, combined exports were £19.4 billion. In 2020, they plummeted to £14.3 billion and they fell by a further billion, to £13.2 billion, in 2021.” “Britain’s exporters of goods, from food to cars, have all suffered from the impact of the poorly negotiated Brexit trade agreement
and increased red tape and duties. The same applies to services, from finance to computing, which now fall outside the regulated EU services market.” “Perhaps most disappointingly, these latest results reveal Britain failed to successfully transition away from the EU to other lucrative overseas markets – one of the positive outcomes promised by Brexiteers.” “The Brexiteers’ promised special trading relationship with America conspicuously failed to materialise. Back in 2019, the UK exported £141.4 billion of goods and services to the USA. In 2020, the first year of Brexit, that collapsed to £127.7 billion. That’s a fall of over £13 billion. In 2021, those figures rose to £133.1 billion but were still over £8 billion short of where they were pre-Brexit.” “And the growth market of China, which British companies such as Jaguar-Land Rover had made a key priority, produced another collapse. In pre-Brexit 2019, the UK exported £35.9 billion of goods and services to China. In 2020, that tumbled to £27.2 billion, a slump of nearly £9 billion. The following year, there was a moderate improvement, as combined figures rose to £27.5 billion, but this was still well short of their 2019 total.” “Perhaps the situation is summed up best by looking at the UK’s exports to the whole of the EU. In 2019, they stood at a healthy £298.1 billion. By 2021, they had slumped by £30 billion to £267.4 billion, but even that was a huge lift from the £258.7 billion they had tumbled to in 2020, in the immediate aftermath of Brexit.”
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ADVERTORIAL
Solidarity Transport Hub set to integrate air, rail and road transport in Poland, boost people’s mobility and improve supply chains in Europe
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oland’s new transport development programme is expected to serve tens of millions of passengers from 2028, integrating air, rail, and road networks to improve the flow of passenger traffic and cargo transport through the region. The new greenfield airport named Solidarity Airport, the construction of which was initiated by the Polish government will be strategically located in the centre of the country between the capital city of Warsaw and Poland’s third largest city, Łódź. Boosting connectivity and ease of mobility STH rail investments include a total of 2,000 kilometres of new lines, in particular highspeed railway lines, to be built by the end od 2034. The STH Rail Programme consists of a total of 12 railway lines, including 10 “spokes” connecting various regions of Poland with Warsaw and the Solidarity Airport. The new network is expected to provide access within a maximum of 2.5 hours from most major Polish cities to the new airport and the country’s capital. What is more important, the construction of the Solidarity Transport Hub will provide much more convenience, saving travelers’ time and money. Planning a trip abroad will no longer require hours of searching for connections or using transfer hubs in nearby countries. Instead of that, travelers will be able to reach such destinations as Australia, South America or Africa directly from the center of Poland via an airport that will be connected by high-speed railway network to provinces and cities across the country. By 2060, the Solidarity Transport Hub is about to attract ca. 850 million additional passengers, according to air traffic forecasts by the International Air Transport Association (IATA). It is expected to reach 40 million passengers in 2035, 50 million in 2044 and 65 million in 2060.
STH moves forward Planning and preparatory work for the implementation of this largest infrastructure investment in Poland for over 70 years began in 2017. In the first half of this year alone, the investor’s variant of the Solidarity Airport was presented, along with the accompanying infrastructure. More than a dozen months ago the STH company has launched hydrogeological studies (drilling, water and soil sampling, laboratory tests) at the airport construction area. At the same time, the nature inventory was completed and the nature inventory report was finalised. Contractors have also been selected in the tender for preparatory/construction work at the airport construction site, and a number of other key tenders have been announced.. To respond to ahead needs, the STH company announced, among others, preliminary market consultations for the implementation of construction works for railway investments. Now, the STH company conducts preparatory works (e.g., feasibility studies) at 1300 km out of 2000 km new railway lines. The whole railway part of the STH project should be completed by 2034.
www.cpk.pl/en CPK doc.indd 1
Enhancing security Even though the Solidarity Transport Hub is dedicated to civil aviation, the investment has been recognised by former commander of US ground forces in Europe General Ben Hodges for capability and capacity that “no other transport hub in Poland or elsewhere in Eastern Europe can match”. This allows to increase the security of the region by providing it with the appropriate transport capabilities to enable the smooth and efficient transfer of military units, equipment, goods, or humanitarian aid when needed. A significant advantage of STH, compared with other similar projects, is the intermodality and excellent connection of the airport with every part of the country and key European destinations. Despite its “civilian nature”, STH is also of significant importance from the point of view of our country’s and Europe’s defence. Of course, it will not be a military base, but nevertheless an extremely important part of NATO’s eastern flank – If only because of significant increase of military mobility,” said Minister Marcin Horała Government Plenipotentiary for the Solidarity Transport Hub. Taking care of the environment Currently, air cargo usually arrives in Poland by landing and taking off from airports in nearby countries before making the final journey to the country by road. This means that goods reach Poland in the least eco-friendly way and customers are paying more for goods due to increased transport costs. The construction of STH will solve these problems, reducing the negative impact of transportation on the environment and reducing costs for domestic consumers. IATA forecasts that the Solidarity Airport could gain up to 20% of market share in Central and Eastern Europe in the short term. Without it, Poland risked missing out on 35 million tonnes of cargo by 2060. Instead, it has a potential to become one of the largest cargo hubs in the region, handling 1.76 tonnes per year by 2060, according to IATA. International cooperation At the beginning of the summer vacations, representatives of the boards of RB Rail AS and STH met in Riga to discuss the possibilities and forms of cooperation. As a result, the both parties signed an agreement aimed at coordinating of plans, activities, and the exchanging of expertise. Rail Baltica is a greenfield rail transport infrastructure project aimed at integrating the Baltic countries with the rest of the European rail network. It foresees the construction of a new 870 kilometre-long electrified double-track railway line through the three Baltic countries and connecting it to Poland and Finland. The width of the new railroad line will be 1435 mm (standard European gauge) and its route includes: Tallinn Parnava - Riga - Panevėžys - Kaunas, the Polish-Lithuanian border, and the KaunasVilnius connection. “The countries of the Central and Eastern European region can bring unique value to the entire EU. The Solidarity Transport Hub iscommitted to developing a common railway network for our region. Signed agreement is a major step towards cross-border integration leading better connections and greater cohesion”- said Mikołaj Wild, CEO of STH.
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FEATURE
LOGITRANS PREVIEW
LOGITRANS EXHIBITION IS AN IMPORTANT PLATFORM FOR THE INDUSTRY’S $25 BILLION TARGET
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he international logitrans transport logistics exhibition will open its doors on 16-18 November at Yenikapı Fairground in Turkey. The event, considered as the most powerful platform in terms of establishing business relations in the intercontinental supply chain between Europe and Asia, will bring together the stakeholders across the logistics industry. Ekin Seren Ünsaç, vice general manager of EKO Fuarcılık, highlighted that Turkey aims to increase its international logistics revenues to $20 billion in 2025 and $30 billion in 2030 by growing together with the export of goods. Ünsaç stated that logitrans has become a powerful platform which creates added value for all parties of logistics in this process. There has been a significant increase in country-based participation in logitrans this year, with regular exhibitors returning and new participants attending for the first time. In addition to leading organisations and companies from Turkey, exhibitors from 21 countries will add a distinct richness to logitrans’ exhibition this year. Austria, Belgium, Bulgaria, China, Czechia, Egypt, Estonia, France, Germany, Hungary, Italy, Kazakhstan, Latvia, Germany, Hungary, Italy, Latvia, Russia, Serbia, Spain, Netherlands, Turkey, Turkmenistan, United Arab Emirates, United Kingdom will all be represented by exhibitors. With Germany, Czechia, Russia, Latvia all having pavilions at the event. The exhibition will feature 164 participating organisations and companies, each of which has made a name and brand in its own field. Among the exhibitors of logitrans are giant names of the logistics industry, such as Sarp Intermodal, Arkas, Galata, Evolog, Omsan, Karınca, Ulusoy, Tırsan. Turkish Cargo, which has made significant progress in the international arena and has become one of the most important players in global air cargo, will again be one of the showcase participants of logitrans. Major international brands are among the organisations participating in the event from abroad. DFDS, Kazakhstan Railways, Qatar Airways, Lufthansa Cargo, Port of Trieste, DSV, Port of Toulon, Port of Marseille will be among the foreign participants of the exhibition. In the German pavilion, attendees will be able to find and meet with world brands, such as Dachser and Interrail Europe.
Turkey is on the way to becoming the most important hub in logistics “Logitrans has attracted greater interest this year as a strong focal point,” Ünsaç said, highlighting how international logitrans transport logistics exhibition brings together the whole industry to see Turkey’s logistics infrastructure and service sectors. “Europe and the western bloc, which constitutes a significant portion of the world’s consumption volume, are now looking at the
global supply chain, which was disrupted during the pandemic, with a much more strategic perspective. Turkey’s location, access to all geographies, logistics infrastructure and competent companies in their respective sectors have become much more important. Turkey is on its way to becoming not only a regional solution centre but also one of the world’s logistics hubs with its facilities, warehouses, highways, sea and airports.”
Logistics is a technology intensive and modern industry Ünsaç added that the importance of logistics in the growth of global economies became better understood during the pandemic period, emphasising that the logistics industry has become a modern and technology-intensive sector far beyond the traditional concept of transportation and storage. “The success and uninterrupted operation of the supply and production chain is now directly related to the capabilities and technological innovations of the logistics sector. While road and maritime transportation undoubtedly constitutes the most important veins of logistics, we are all witnessing the increasing importance of air cargo and railways. Intermodal or combined
transportation is rapidly evolving into an inevitably preferred model in terms of both preventing supply chain disruption and creating an environmentally friendly logistics infrastructure and superstructure. It is now indispensable for logistics to combine local power with global power in terms of competition. The Turkish logistics sector is recognised as a strong global player with its technology, intermodal transportation facilities and infrastructure, and human resources.”
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CHINA CARGO
CHINA’S E-COMMERCE BOOM DRIVES COUNTRY’S GROWTH
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rguably the epicentre of one of the first waves of globalisation, linking markets from East to West, Central Asia has a long and storied history of trade. In China, this dates back to, at least, the country’s Han Dynasty in 206 BCE, with the country’s original Silk Road forging trade networks across Central Asian nations and beyond, with some routes covering thousands of miles into Europe. This early trade route sparked a boom in wealth, as goods and culture were moved between nations. China would send silk, spices and minerals to the West, receiving glass, precious metals and other items in return. In modern times, airfreight has sped up the movement of goods and cemented China’s role in international trade. That was evident during the pandemic, when the country played a critical role in supplying PPE around the globe, as well as how it has long served as a key manufacturing hub for companies around the globe. While there has been fluctuations in trade volumes over time, with numerous challenges and hurdles impacting routes, trends show that China is playing an increasingly important role in international trade due to the rapid expansion of the e-commerce market.
Tough times As the first country to impose lockdown restrictions following the outbreak of the Covid pandemic, with some of those measures only recently being lifted, China has been particularly impacted by the virus over the past few years. Businesses have been forced to cut back their activities, people have been unable to work as they used to and companies around the globe have had to reconsider how they operate around the tricky environment in China and
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surrounding countries that adopted tough restrictions. Earlier in 2022, China recorded its weakest level of export growth since June 2020, as lingering Covid rules continued to take their toll on the country’s trade. Prolonged lockdowns have prevented the country’s major economic hubs from reaching the momentum that they are truly capable of, as the virus remains a problem for the country, while other nations return to normality. Major trade hub, Shanghai, for example, battled one of the country’s worst outbreaks of Covid at the start of the year since the pandemic began. This resulted in substantial disruption and delays, hitting transport and logistics networks, sending waves that rippled throughout the global supply chain. Export growth has been a significant driver of the Chinese economy but continued pressure from Covid risks that. Not only does China have to contend with other Asian nations having removed restrictions taking trade away from Beijing, there has been a weakening in global demand from the West, as soaring inflation and a cost-ofliving crisis hits purchasing power.
e-commerce comes to the rescue There’s hope on the horizon though, particularly as the Christmas period approaches, with the rapid expansion of the e-commerce industry forming a central part of China’s growing economy. China currently ranks at number one worldwide for retail e-commerce sales. In 2021, despite the pandemic, retail e-commerce sales in China totalled over $2.7 trillion, with that number expected to grow to over $3.5 trillion by 2024, according to analysts’ predictions. Nowadays, China holds 40% of the global market share of the e-commerce industry. This is a strong performance for a
FEATURE
country which accounted for less than 1% of the e-commerce market before 2008. Alone, China handles more e-commerce transactions than France, German, Japan, the UK and US combined. China’s strong grip on the e-commerce sector has been powered by both domestic and international trade. In 2021, China accounted for more than one-fifth of all internet users worldwide. Out of that number, as of December 2021, over 81% of internet users in China had shopped online. On Singles Day 2021, China’s biggest shopping festival, Alibaba and JD.com recorded $139 billion worth of sales alone across their platforms. 2022 is set to be a strong year too, with pre-sales looking healthy according to China’s leading e-commerce platforms despite a slowdown in consumer spending.
New cargo airline The potential opportunities presented by the expanding e-commerce market is reflected in how Zongteng Group, a Chinese logistics service provider, recently announced the aquisition of a freighter to launch a cargo airline that will help sales platforms reach global markets faster. The second-hand Boeing 777 freighter will increase warehouse fulfilment capabilities, flying three to four times per week from Shenzhen to the Middle East and Europe for the company’s subsidiary YunExpress. The first route was launched from Shenzhen to Riyadh, Saudi Arabia in September, with the European leg to Paris’ Charles de Gaulle Airport to start in December. There is even suggestion the logistics company could extend its services to North America. The move is an example of the strong confidence in the further growth of the e-commerce market within China and the potential it presents to airlines, cargo handlers, logistics
service providers and more across the industry. Zongteng Group is the latest company to take this approach with Amazon and JD.com having taken similar steps, setting up private cargo carriers to ensure they have greater control over the movement of goods, rather than having to rely on other airlines to meet the needs of clients and customers.
China’s long-term vision The Covid pandemic has moved shoppers from traditional brick and mortar stores to online orders that need to be moved by cargo carriers. The emergence of new platforms, increased confidence in online shopping and the expansion of technology has seen rapid growth in the e-commerce sector over the last five years. China isn’t just happy to profit from the rise in e-commerce though, it wants to be instrumental in its growth. Beijing has its eyes set on establishing its own rival to global logistics giants like FedEx and UPS. Alibaba’s Cainiao recently offered a new road delivery route from Asia to Liege in Belgium, adding an alternative option, alongside airfreight and ocean routes. JD.com’s delivery company JD Logistics is stepping up its activities. SF Express is looking to expand its market share. As well as those three established companies, China launched a state-owned logistics giant last year with the expressed aim to become a “global supply chain organiser.” The China Logistics Group, combining the assets of four companies, has hubs in 30 domestic provinces and five continents, as well as three million vehicles at its disposal. Only time will tell whether China can achieve its goal but what is clear is that Beijing is determined to further solidify its position in the international supply chain.
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ISTANBUL GRAND AIRPORT (iGA) Introduction
iGA Istanbul Airport is a prime hub at the intersection of Asia, Europe, the Middle East and Africa. It has been serving more than 300 destinations with a significant share of Turkish Airlines and Turkish Cargo. Within 3 hours of flight distance, there are 120 countries, 60 capital cities and 130 destinations. For air cargo, companies flying to and from Istanbul provides a natural advantage. Besides geographical advantage airport, infrastructure and service quality is also important for speedy air cargo, and it secures high operational productivity.
Efficiency and Flexibility
Istanbul Cargo City has been located in a north-south direction between two of its three runways, number 1 and 2. Landside and airside operations are being operated in the same district. Very short taxi times are a significant advantage. With its three independent runways having a minimum slot capacity of 120 in an hourly peak time. Parking capacities for 38 narrow body and 29 wide-body aircraft in max 50m distance to bounded warehouses. Similar proximity for trucks on the landside as well. There are wide operational areas for loading and unloading trucks in docking areas. Access to cargo city from landside by two tunnels provides zero traffic. Belly cargo can be carried very fast to/from cargo city from passenger terminal through tunnels on the airside as well.
Airport Area and Cargo Capacity
The Cargo City within iGA Istanbul Airport covers an area of 1.4 million square meters. Capacity is 1.5 million tonnes per year. When all phases are completed at IST the capacity will reach 5.5 million tonnes per year.
Special Services Pharma Fresh Valuable products Live animal Dry/refrigerated food Radioactive material
The Handling Company
All related parties such as all Customs facilities, Bounded and Unbounded Warehouses, Transportation Companies, ground handling companies are located in the area and provides an advantage for fast operation.
For futher information visit: www.istairport.com/en/commercial/cargo-hub/cargo-hub
10 Istanbul Airport.indd 2
31/03/2022 10:48
Istanbul Airport.indd 3
29/03/2022 10:23
COLLABORATIVE COMMUNITIES ARE VITAL FOR A SUCCESSFUL AIR CARGO HUB
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s one of the largest transport hubs in Asia, Singapore Changi Airport has had to adapt the way that it engages with partners around the world, moving towards the online space in the past couple of years. The return of air cargo forum Miami and transport logistic Americas opens the door again for hubs, like Changi, to network with airports and cargo partners, reaching out to more aviation stakeholders and updating them on new developments. “Now that border restrictions have been lifted, we are eager to reconnect with our partners face-to-face and discuss opportunities for greater collaboration,” Lim Ching Kiat, Managing Director of Air Hub Development at Changi Airport Group (CAG), said. “Of course,
we also look forward to the exchange of ideas and perspectives through the event, to keep abreast of the latest industry trends and innovations.” “We have found these trade conferences to be effective networking platforms. Changi Airport Group firmly believes that a strong and collaborative community is one of the key drivers for a successful air cargo hub, as there are multiple players involved in the entire value chain,” he added. “The pandemic has shown that global supply chains are vulnerable, including Singapore’s, and has underscored the impetus for change and building resilience. There is a pressing need for our air cargo sector to move forward with digitalisation
and automation, in order to improve efficiency of otherwise manual processes,” Lim stated. Air cargo throughput in Changi Airport had recovered to preCovid levels in late 2021. However, air cargo demand weakened in recent months amid global economic uncertainty and inflationary pressures. Notwithstanding the near-term challenges, CAG holds a positive outlook for the air cargo industry. Since 2021, Changi Airport has welcomed three new freighter operators – SpiceXpress, Tasman Cargo Airlines and Atlas Air. In August 2022, it welcomed the partnership of DHL Express and Singapore Airlines to deploy five Boeing 777 freighters out of the hub, which will operate on routes between the US and Singapore.
aircargoweek.com