MIAMI AIRPORT’S VERTICAL CARGO AMBITION US GATEWAY SPECIAL MCI (P) 002/07/2016 ISSN 2010-4227
London, England 27 - 29 September 2022 For more details please contact: iatawcs@gl-events.com REGISTER NOW ON IATA.ORG/EVENTS Meet and connect with cargo leaders and exhibitors, partake in plenary sessions, industry meetings, workshops and executive summits, tackling aspects related to Technology & Innovation, Safety, Security & Customs, Cargo Operations and Sustainability. MAINTAINING MOMENTUM, BUILDING RESILIENCE. JOIN US AT THIS YEAR’S IATA WORLD CARGO SYMPOSIUM
There’s also a conversation with Brandon Fried, executive director of US trade body The Airforwarders Association, as he shares his insights on some of the policies and issues surrounding the movement of cargo by air, and other modes.
In this special issue, we’re taking a trip to the world’s largest economy and undoubtedly still the largest aviation market—the United States of America.
We also feature recently held events by known trade bodies, including FAPAA’s annual general meeting in July, as well as the upcoming World Cargo Symposium in London in September. Knock yourself out and enjoy this bimonthly issue for August and September and stay tuned for the upcoming coverage of the Payload Asia Awards this coming October.
Over the last 2 years the world’s super power joined the rest of the globe reeling from the effects of a pandemic that clearly changed how the aviation industry looked at air cargo and, in some way, revealed its true purpose.
KeenEDITORIAL/PUBLISHERWhyeLee publisher@harvest-info.comPublisher Giullian Navarra PLA editor-pla@harvest-info.comEditor MariOPERATIONSVergara Head of manager-ph@harvest-info.comOperations LaliMARKETINGSingson Marketing mktg@harvest-info.comManager SimonSALES Lee Hong Kong, Europe and Middle sales@harvest-info.comEast Chua Chew Huat Asia Pacific sales-sg@harvest-info.com Matt Weidner North mtw@weidcom.comAmerica TECHNICAL SUPPORT Michael Magsalin Harvesttech@harvest-info.comInformationPte. Ltd. 150 Orchard Road, #07-05 Orchard SingaporePlaza169206 150 Orchard Road, #07-05 Orchard Plaza, Singapore 169206 Giullian Navarra Chief Editor EDITOR’S NOTE 1www.payloadasia.com | AUGUST - SEPTEMBER 2022
This issue also takes a look at some of the leading air hubs and gateways in North America with interviews with Houston Airports System and Miami International Airport. Turn to pages 22 and 26 and get to know the people behind cargo development.
One of the companies that we feature delivered where it was needed most during the pandemic, delivering vaccine supplies and forming alliances to support the fast delivery of goods where it was needed. With the strong recovery in travel, the airline has recorded its first profitable quarter in Q2 of this year and is poised to come out even stronger. Find out how United Airlines is navigating the new normal by flipping to page 24.
China’s Zhengzhou airport opens new north cargo
Qantas to add six A321s for its domestic cargo fleet
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FEATURE
Goodbye, just in time and hello, just in case!
SPECIAL FEATURE
INSIGHTS
04 262422 1208 14 130906 1816101107 CONTENT PAGE 24 NEWS FEATUREINSIGHTS COVER SPECIALSTORYFEATURE
local talent with accredited training courses
United Airlines comes out stronger on the other side
Agility seals Menzies acquisition
Miami Airport shares upcoming plans to support its cargo ambitions
Changi Airport knows it takes a whole community to become sustainable
UPS adds capacity in Asia with Bangkok service
A look at Houston’s threehub airport system
Meet IATA’s main guy for cargo in Asia Pacific
Hactlterminalboosts
HPW Cargo to trade air freight capacity on Airblox
2 AUGUST - SEPTEMBER 2022 | www.payloadasia.com
GEODIS acquisition to strengthen its US service
Meet IATA’s main guy for cargo in Asia Pacific
SingPost names new information chief
United Airlines comes out stronger on the other side
Changi Airport knows its take a whole community to become sustainable Hong Kong opens third runway for operations
America’s Global Gateway iflyMIA.com marketing@flyMIA.com• • Multi-Billion Dollar Hi-Tech Hub • No Slots/Curfews/Delays • Top Perishable Products Hub • Top U.S. International Freight Hub • Multi-Billion Dollar Pharma Hub • Top Latin American/Caribbean Hub • High Ranking Global Freight Hub • Major North E-CommerceAmericanHub ATTRIBUTESOURYOUROPPORTUNITIES MIAMI INTERNATIONAL AIRPORT
Lufthansa freighter to add more capacity to Asia
Qantas Freight will increase its domestic fleet with six Airbus A321 aircraft to meet growing e-commerce
Cathay Pacific is taking the lead in aviation’s sustainability efforts in Asia with the extension of Fly Greener to its air cargo service, allowing customers to offset their shipments by air waybill (AWB)
Qantas to add six A321s for its domestic cargo fleet
enter five AWB numbers at a time, but can submit as many applications as required over any
market and converted for cargo use under the model designation
Qantas,A321P2F.which has three A321P2Fs, said that replacing the remaining 737 freighters with these newer aircraft will simplify its fleet, bringing extra efficiency in training and maintenance. The six A321 freighters are expected to arrive between early 2024 and mid-2026 and will replace the fleet of Boeing 737 freighters that are approaching the end of their economic life. Each Airbus conversion can carry nine tonnes more than the older 737s and around 30 percent more fuel efficient per tonne of freight carried.
demand and as part of replacing its older freighters. The airline said the aircraft will be sourced on the open
Cathay extends carbon-offset scheme to air freight
After each submission, customers will be sent a spreadsheet showing the totals carried and claimed, plus the carbon-offset calculation. They will also receive a monthly statement displaying all submissions from the previous month and the total to be settled. Customers will then receive a certificate showing the offset total and the project they have supported, for their own auditing. The monetary contributions go directly to fund third-party validated projects.
Lufthansa Cargo is expanding its long-haul route network in its winter flight schedule with additional flights to destinations seeing high freight demand, including the addition of a new route to Vietnam.
4 AUGUST - SEPTEMBER 2022 | www.payloadasia.com NEWS - CARRIERS
Starting the end of August, Lufthansa Cargo is marketing additional capacity
monthly period. The tool, which uses the latest IATA methodology, will show the volume of emissions and display the offset charge in local currency, calculated by weight, and aircraft type.
Usersnumber.can
with the deployment of another Boeing 777F freighter. The German airline said it plans to operate 78 rotations with the B777F each week in its winter schedule, with 38 weekly connections on routes to Asia alone. The current winter flight schedule comes into effect on October 30, 2022.
Added to the schedule is a new route to Vietnam via Hanoi (HAN) which will be served twice a week from Frankfurt via Mumbai (BOM) starting November. It already operates two weekly services from Frankfurt to Ho Chi Minh City (SGN) via Bangkok (BKK).
With our expansive global route network and reliable service, our industry-leading solutions can get your shipments wherever they need to
unitedcargo.comgo.reserved.rightsAllInc.Airlines,United2022©
Connecting products to people worldwide.
6 AUGUST - SEPTEMBER 2022 | www.payloadasia.com NEWS - AIRPORTS
Toowoomba Wellcamp Airport said the freighter service will serve as a gateway for oversize cargo, chilled meat, percentinternationalChinesemailthanAirlinescargoOtherforChinaofpassengersthethreeCGO101customsofferscargoscanning,featuresatflightCathayDimercomillionhub’stheAviation.terminaloperatesequipmentseafood,horticulture-fruit/vegetables,oilandgas,miningandartwork.TheairportitsinternationalaircargoinconjunctionwithMenziesChineseairport,bringingtheairtotalaircargocapacityto1.1tonnes.ExpressworkedwithPacifictoarrangeitsfirsttothenewcargoterminalCGO.Thenewhigh-techfacilityadvancedautomationforweighingandmovingwithintheterminal.Italsoalargecoldchainarea,anewinspectionarea,aswellasshippingdocks.planstohavefiverunwaysandcargozonesby2035,withcapacitytoserve100millionandfivemilliontonnescargoperyearbysuchtime,aslookstospendUS$712milliontheairportinfrastructure.operatorsseenatthenewterminalincludeHainanandVolga-Dnepr.More400,000tonnesofcargoandhavepassedthroughtheairportyeartodate,withcargovolumesup8.8to330,000tonnes.
Cathay Pacific resumes freight service from WTB in Queensland
China’s Zhengzhou airport opens new north cargo terminal
Cathay Pacific Cargo has resumed its weekly Boeing 747 freighter service from Toowoomba Wellcamp Airport (WTB) in Queensland, Australia to Hong Kong (HKG). The carrier said in
a LinkedIn post on 4 August the new service will support local producers and exporters of chilled meats, vegetables and more to reach the Hong Kong market and beyond.
Zhengzhou Xinzheng International Airport (CGO) in China’s Henan province opened its new north cargo
terminal for business on 16 August. The 160,000-sqm facility will add 600,000 tonnes of freight capacity at
The airport’s centre runway will be temporarily closed for reconfiguration as part of the three-runway System (3RS) development. HKIA will continue to operate with the new north runway and the south runway.
SF Express, China’s leading logistics service provider, plays a crucial role at the Ezhou airport and holds a 46 percent stake in airport operator Hubei International Logistics Airport
existing cargo handling operations with Air China in Denmark, France, Germany, Spain, and the United Kingdom. It also holds contracts with the airline in the US and Canada as well as providing fuelling services in Hong Kong.
Air China picks WFS to handle its 777Fs at Liege
NEWS - AIRPORTS
A government flying service plane landed at around 0824 hrs on 8 July, followed by a commercial cargo flight operated by Cathay Pacific (CX 3251) from Shanghai Pudong at 0827 hrs.
The Ezhou Huahu Airport in China’s central province of Hubei has started commercial operations with the first cargo flight on 17 July, operated by SF Airlines on its B767-300. This marked the official launch of China’s own ‘professional air cargo hub’, according to Chinese news agency Xinhua.
Equipped with a 23,000-sqm cargo terminal, a freight transit center of around 700,000 square meters, 124 parking stands and two runways, the airport has opened two cargo routes to Shenzhen and Shanghai, and is scheduled to add international routes connecting with Osaka in Japan and Frankfurt in Germany within this year.
Hong Kong opens third runway for operations
China’s Ezhou airport in Hubei starts operations
Air China has started a new three-year cargo and ramp handling agreement with Worldwide Flight Services (WFS) in Liege (LGG), Belgium. The new contract is linked to WFS’ existing handling operations in Liege for Cainiao Smart
Logistics Network, part of the Alibaba Group, which is a shareholder in Air TheChina.airline
Co., Ltd. It plans to process the majority of its packages through the new airport, having built a freight transport transit center, a cargo sorting center and an aviation base at the new Chinese air hub.
The community at Hong Kong airport is getting ready as ‘operation familiarisation’ commenced with the first government and commercial cargo flights descending upon the new third runway last week.
7www.payloadasia.com | AUGUST - SEPTEMBER 2022
The airport authority announced earlier that ‘familiarisation’ on the third runway, designated as the north runway, will be conducted from 8 July 2022 onwards to allow stakeholders of the aviation community to orient themselves with the related procedures and collaborative
operates four Boeing 777 freighter flights a week to LGG from Hangzhou Xiaoshan International Airport (HGH), the capital of Zhejiang Province, returning to China via Madrid. WFS expects to handle over 14,000 tonnes of cargo for Air China in the first year of the new contract, rising to over 23,000 tonnes with expected increases in flight operations in WFS2023/24.has
arrangements in an orderly manner.
WFS boosts cargo handling capacity at Heathrow
8 AUGUST - SEPTEMBER 2022 | www.payloadasia.com NEWS - CARGO HANDLING
ramp, and cargo handling, aircraft re-fuelling and de-icing, as well as lounge and concierge services. Jared Azcuy, AGI chief, said this opportunity with ATS will allow the company to build its presence in the airport terminal and passenger side of the business.
Over the previous eight months, AGI has announced the addition and promotion of key talent to its team, investments into technology and systems, and expansions and new facilities in Chicago and Newark in addition to its strategic acquisitions of Maestro, TAS, and ATS.
Kuwaiti logistics provider Agility in early August finalised its £763 million acquisition (or around US$932.1 million) of UK-based John Menzies PLC, merging Menzies with its ground handling subsidiary National Aviation Services.
over 5,500 employees and offers full-range ground handling services, including passenger,
Once opened, WFS will increase its total cargo handling space at the airport to nearly 350,000 sqft. WFS said this latest expansion is designed to support existing airline customers as well as new contracts gained in the past 12 months, including Sri Lankan Airlines, Gulf Air and All Nippon Airways.
for loaded pallets and containers, as well as a 7,000-sqft area for ambient shipments and dedicated storage for temperature-controlled shipments with strict requirements.
Once a dedicated cargo handler and freighter ground handler, Alliance Ground International (AGI) is stepping into passenger operations after it acquired Airport Terminal Services (ATS) as part of its ongoing growth strategy across North
Once integrated, the combined company will provide air cargo services, fuel services and ground services and will carry the Menzies
Alliance Ground International moves into passenger operations
Agility seals Menzies acquisition
ATSAmerica.has
WFS currently provides cargo handling services for 16 international airlines at Heathrow, handling over 425,000 tonnes of freight, airmail and express shipments through seven warehouse facilities. It saw 30 percent growth in volumes in the past year.
WFS has signed a 5-year lease on Building 578 in Heathrow’s cargo area, boosting its warehouse and office space by a further 27,000 sqft at the air hub. The building will see operations start in October and will feature eight landside doors for cargo deliveries and collections, and a 20-foot truck dock. Plans are underway for caster deck storage
The company’s customers include Air Canada, Air China, Air France-KLM, American Airlines, British Airways, Cathay Pacific, EasyJet, Emirates, Ethiopian, FlyDubai, Frontier Airlines, IAG, Jazeera, Qantas Group, Qatar Airways, Southwest, Turkish, United Airlines, WestJet and Wizz Air.
Aviation brand with CEO, Philipp Joeinig, becoming the boss of the combined company.
“Overall, QF accreditation should help to standardise local industry competencies and lead to improved standards, enhancing Hong Kong’s image in the logistics sector. Wider adoption of QF courses will also make it easier to evaluate the competency level of candidates when recruiting, which will be of great benefit to Hactl and the air cargo industry,” said Kwong.
Hactl has been following IATA standards and the Hong Kong Civil Aviation Department, but CEO Wilson Kwong said the Specification of Competency Standards, applied in designing these courses, has been drawn up by members of the local logistics industry.
company SATS, who increased its controlling stake at the Hong Kong ground handler last year, said the new facility was designed
SATS subsidiary Asia Airfreight Terminal Co. Ltd. (AAT) has unveiled its new on-airport temperaturecontrolled facility at Hong Kong airport, as the company looks to grow its handled volume for perishable and pharmaceutical air Parentfreight.
joint venture company between the Lakson group and Air Arabia Group.
Hong Kong Air Cargo Terminals Limited (Hactl) has become the first cargo terminal and logistics corporation to have its training courses receive accreditation under the Hong Kong Qualifications Framework (HKQF).
The Hong Kong cold chain facility is fully certified with IATA CEIV Pharma, IATA CEIV Fresh, and WHO GDP Pharma accreditations. SATS expects the facility to increase AAT’s handling capacity for temperature-sensitive cargo by 50 percent. The Singapore-
British Airways and the United Nations World Food Programme (UN WFP) have also selected MenziesRAS at Islamabad airport (ISB), whilst flynas, a domestic and international low-cost airline based in Saudi Arabia, has chosen the merged group at Karachi, Lahore and ISB.
Menzies-RAS won a contract to provide ground services to Air Arabia Abu Dhabi, private airline airblue, Low-cost Kuwait airline Jazeera, Pakistani airline AirSial, and newly launched carrier Fly Jinnah, a
based company increased its controlling stake to 65.4 percent in the previous financial year.
Menzies makes ground in Pakistan with contract wins
HKQF was launched in 2008 by the HKSAR Government, covering qualifications in the academic, vocational and professional as well
SATS targets growth in Hong Kong with modern cold chain facility
Hactl boosts local talent with accredited training courses
Menzies Aviation earlier this month revealed more than a dozen secured contracts in Pakistan after it acquired 49 percent of local aviation services business Royal Airport Services (RAS), as stated on a press release dated 12 August.
9www.payloadasia.com | AUGUST - SEPTEMBER 2022 NEWS - CARGO HANDLING
The acquisition of a stake in Royal Airport Services has created an even stronger growth platform for Menzies Aviation in Pakistan, with contract wins with several major carriers in the region since forming in early 2021.
with reference to the COOLPORT facility at Singapore’s Changi Airport, complete with multi-tiered temperature zones and a palletized ULD system.
as continuing education sectors. Hactl’s four courses, which are now recognised under HKQF, are valid for two years and subject to re-accreditation. These include courses in special and temperaturecontrolled cargo handling for supervisors, dangerous goods awareness training, conflict resolution, and service excellence.
GEODIS acquisition to strengthen its US service
10 AUGUST - SEPTEMBER 2022 | www.payloadasia.com NEWS - FREIGHT FORWARDERS
GEODIS earlier in August signed an agreement to acquire American
Every Sunday night, the flight leaves Amsterdam (AMS) and stops in New
DB Schenker offers weekly charter service to Latin America
The New Jersey-based company operates an expansive domestic road freight network with more
Hellmann Worldwide Logistics has taken full control of its Peruvian joint venture Hellmann Worldwide Logistics S.A.C. as the company acquired the remaining 50 percent of shares held by Carlos Augusto Dammert, board president.
service portfolio for customers and generating further sustainable growth in Peru and the entire Americas region.
Hellmann has been actively present in Peru since 1992 and established the joint venture together with Carlos Augusto Dammert in 1998. In the last 30 years, the company has become a leader in the Peruvian logistics market, being one of the largest airfreight export forwarders, focusing mainly on perishable thanlogistics.65company
locations and 300 distribution points, providing strong national coverage, particularly in the eastern United States.
York City (JFK) and Miami (MIA) on Monday before reaching Viracopos (VCP) near São Paulo on the same day. On Tuesdays, a direct connection can be made to Buenos Aires (EZP), whilst Santiago de Chile (SCL) can be reached on Wednesdays. An airline partner will be operating the new transatlantic route with Boeing 767 freighter jets.
The first bookings included a diverse range of goods, including automotive parts. DB Schenker said temperaturecontrolled cargo and dangerous goods can also be transported upon request with seamless connections from air to land via the forwarder’s road network within Europe.
company, Need It Now Delivers, which will enable the forwarder to increase its US presence in contract logistics and last-mile delivery.
Hellmann takes full control of its Peruvian joint venture
DB Schenker has started offering additional charter capacities across the Atlantic in early August. The new route starts from The Netherlands and reaches Brazil after two stopovers in the US with direct connections to Argentina and Chile available. The weekly freight charter flight provides 50 tonnes of capacity and expands DB Schenker’s growing intercontinental flight network.
The acquisition allows the company to be fully integrated into Hellmann’s global network, thus expanding the
The company, owned in part by management and private equity fund Palm Beach Capital, specializes in distribution, last-mile delivery, and in multichannel contract logistics across a wide range of high-growth industry verticals.
The New Jersey-based company employs around 2,000 people and is expected to reach revenues close to $750 million in 2022. Geodis said this acquisition will strengthen its American footprint and e-Commerce services portfolio, complementing its services in freight forwarding, road transport, contract logistics and lastmile delivery.
Hanoi-headquartered freight forwarder HPW cargo has listed its recurring block space agreement (BSA) positions on the Hanoi to Frankfurt lane this summer.
Mathieu Renard Biron, managing director for global freight forwarding at Kerry Logistics Network, said the HKG-HSV charter service started in April and has been welcomed well by electronic brands and e-tailers since its inaugural flight.
extend services to mainland China and other parts of Asia.
HPW Cargo to trade air freight capacity on Airblox
Weekly direct flights from HKG to HSV are scheduled on Mondays, Tuesdays, Thursdays and Sundays. These are supported with B2B, B2C and B2B2C door-to-door services to different cities in North and South America, including Chicago, Los Angeles, New York and Miami.
In July, the freight forwarder augmented its network to include
the first online platform to enable air cargo capacity to be traded in a blockchain infrastructure ensuring secure
HarriseBSAs.
sales. The platform now has over 2,000 lanes listed, with predictive analytics and pricing forecast on major cargo lanes. It claims to be
Kerry Logistics ramps up US freight service via HSV
Fintech company Airblox, making its debut in Southeast Asia, has developed a platform that enables brokers, freight forwarders, and airlines to trade cargo capacity in the form of eBSAs. This contract represents the purchase of an agreed capacity or space on the flight of an airline or a carrier. Buyers of capacity can bid for, buy outright, or block space from the holder of an agreement electronically using these
accountstransactions.tofurther
three weekly flights from Hanoi, Vietnam to Huntsville. The company is in dialogue with some of its key
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Kerry Logistics is ramping up capacity in its controlled network with four weekly charter flights from Hong Kong (HKG) to Huntsville (HSV) in Alabama, with inclusion of perishable and dangerous goods.
Hieu, sales manager at HPW Cargo, believes the Airblox business model is the future of air cargo space
Cainiao’s smart warehouse network expands into Israel
CEVA Logistics opens new office in Bahrain
The forwarder’s revenue in the region grew 30 percent last year, and the forwarder expects its local presence to accelerate its growth in key industries and to support end-toend deliveries and last-mile service. Its direct presence in the Middle East now includes Bahrain, the United Arab Emirates, Qatar and Oman.
Cainiao is banking on the growth potential of the Israeli e-commerce market with analysts predicting revenues to reach USD 7.84 billion in 2022.
National postal service operator Singapore Post Limited (SingPost) has appointed Noel Singgih as its Group Chief Information Officer (CIO) in July 2022.
12 AUGUST - SEPTEMBER 2022 | www.payloadasia.com NEWS - LOGISTICS
Mrcustomers.Vincent
Cainiao Network has launched an automatic distribution center and overseas warehouse in Israel, which is the first for the Alibaba logistics unit in the Middle East, and its tenth globally. The facility is located 30 minutes away from Israel’s main airport Ben Gurion near Tel Aviv. It will be equipped with intelligent sorting equipment,
Phang, SingPost’s Group CEO, said: “We are incredibly excited to have Noel join us after an extensive search. Noel’s leadership and credentials are well regarded in the logistics and technology space, and we look forward to Noel elevating SingPost’s digital capabilities as we build the future of logistics.”
Chain, where he was the unit’s chief information officer for Asia Pacific. At DHL, he held several key leadership roles, amassing a wealth of expertise in developing IT solutions for global
Cainiao also partnered with U-Speed, an eCommerce logistics supply chain service platform, to operate its first overseas warehouse in Israel, as part of its logistics infrastructure development in the region and to support e-commerce. The overseas warehouse is equipped with smart logistics equipment, and offers integrated warehouse and distribution services to facilitate parcel deliveries within three working days.
CEVA Logistics is expanding its presence across the Middle East with a new office in Bahrain. Located in Manama, the new office will offer a full range of air, ocean, ground and contract logistics services.
and Cainiao’s proprietary overseas digital intelligent sorting system to manage the entire value chain: from first-mile pickup, last mile deliveries and other logistics scenarios.
SingPost names new chiefinformation
With more than 20 years of experience, Noel joins the management team from DHL Supply
international network through the Asia Pacific hub, where it will also receive and process inbound shipments. The operations center will include offices, operation areas and a warehouse with three times the sorting capacity.
Thisweekly.isthe
UPS has launched a new service from Suvarnabhumi Airport in Bangkok (BKK) to its intra-Asia Hub in China’s Shenzhen airport (SZX), which will operate five times each
comes as the logistics integrator foresees growing crossborder trade between Thailand and other major markets in the region, which it says could double to over US$550 billion by 2030.
Hanoi and Ho Chi Minh City in 2020, and Osaka Kansai in 2021. Thailand managing director Russell Reed said the new flight will offer more cross-border trade opportunities for businesses using the integrator’s network as well as delivery services to other global destinations like Europe and the US.
‘FedEx South China Operations Centre’ will cover an area of over 41,000 square metres and is scheduled for operations in 2027. The facility, which will include state-of-the-art sorting systems, will connect outbound shipments from southern China with the FedEx
UPS adds capacity in Asia with Bangkok service
DHL Express greets first 777F under SIA FedExpartnershiptoexpand operations at Guangzhou hub
13www.payloadasia.com | AUGUST - SEPTEMBER 2022 NEWS - EXPRESS
DHL Express welcomed its new 777 freighter at Changi Airport in Singapore last month, under a partnership with flag carrier Singapore Airlines.
Korea since August. A second Boeing 777 freighter is slated to enter into service in November 2022, following which both freighters will operate the Singapore-Incheon-Los AngelesHonolulu-Singapore route six times
first of five 777Fs that will be used by the express operator under the crew and maintenance agreement signed by both parties in March. Three freighters are planned for delivery throughout 2023. All of the 777Fs will be operated by SIA pilots, with the maintenance overseen by SIA. These wide-body
Theweek.move
Based at Changi airport, the brand new aircraft has been operated by SIA three times each week on routes to the United States via South
FedEx signed an agreement with Guangdong Airport Authority Logistics Company in August to expand and upgrade the FedEx Guangzhou Gateway by establishing a new operations centre at Guangzhou Baiyun International TheAirport.new
UPS said this is the third year in a row that the country has introduced flights into its Asia Pacific network. It started services to and from
FedEx’s Asia Pacific Hub at Guangzhou Baiyun International Airport connects to the US and North American network through Anchorage and Memphis, and the European network through Paris and Cologne. It currently operates more than 210 flights per week, with the Guangzhou gateway handling approximately 40 percent of the hub’s import and export cargo
are planned to operate on routes between the United States and Singapore via points in North Asia and Australia.
cargovolume.jets
David Wee, IATA
In an interview, Payload Asia talks to David Wee, IATA’s regional manager for operations, safety and security (cargo) in Asia Pacific, as he discusses the trade body’s strategy when it comes to developing air freight in the region.
involving misdeclared or undeclared lithium batteries This affects not just aviation industry but the entire cargo supply chain, including entities involved in the handling, storing or shipping of the batteries.
I am also responsible for providing technical support and assistance to IATA members and stakeholders across the air cargo supply chain, promoting industry standards and best practices, and advanced solutions. Overall, my job is to support IATA’s members and industry stakeholders in making air cargo shipping more efficient and relevant for our customers.
What were the recent incidents that prompted the group to call for more attention on lithium batteries? Who assumes the burden for such incidents?
The focus on the safe carriage of lithium batteries was not prompted by any particular incident or event. Safety is aviation’s top priority and IATA sees the importance of addressing risk associating with the transport of lithium batteries. There has been a rapid increase in the global demand for lithium batteries, growing at 30 percent annually. This led to a rise in the risk of incidents
IATA has been very active in the industry in the past ten years in working with industry partners, including the International Civil Aviation Organization (ICAO) and Safe Aerospace Engineering (SAE) in developing and improving the shipping requirements for lithium batteries, and in establishing a safety data collection system to facilitate information sharing and analysis. With the usage and transport of lithium batteries accelerating, more actions need to be taken to help protect the air transport industry. Everyone—airlines, shippers, manufacturers, ground handlers, forwarders and government—in the supply chain is responsible for the safe carriage of lithium batteries. It’s a joint responsibility.
Part of the challenge is that the transport of air cargo is built around trust: trust that the shippers correctly declare what they are shipping.
Meet IATA’s main guy for cargo in Asia Pacific
14 AUGUST - SEPTEMBER 2022 | www.payloadasia.com FEATURE
Can you tell us about your role and responsibilities with IATA?
My role is to develop and execute IATA’s Cargo strategy and priorities for the Asia Pacific region. This includes engaging the air cargo community on sustainability, digitalization, safe carriage of cargo and mail, facilitating the global distribution of healthcare products and improving cross-border movement of goods.
Partcost.
Which airports or airlines in Asia Pacific are paving the way for safer transport of lithium batteries, if any?
There’s also lack of competence or training of employees, including those of contracted ground handling agents, resulting in the acceptance of non-compliant shipments. Another is the lack of monitoring on ground handling agents leading to mishandling of shipments and consequently potential damage to lithium batteries that could result in cell failure leading to thermal runaway. Then there’s the large volume of e-commerce parcels containing high capacity lithium batteries that are packed in plastic bags or simply undeclared.
Staff handling lithium batteries must be competent and trained
and robust processes put in place to ensure lithium batteries are carefully managed and monitored throughout the cargo shipping journey. IATA has developed the Center of Excellence for Independent Validators Lithium Batteries (CEIV Li-batt) certification program. CEIV Li-batt is designed to build trust, staff competency and enable stakeholders to meet their safety obligations by complying with the applicable transport regulations.
The continued occurrences of aviation-related incidents involving lithium batteries carried as cargo or baggage goes to highlight that there is room for improvement.
nature of the data collected, some authorities are reluctant to disclose the details, which may then limit the operators’ ability to evaluate their risk exposure. In our opinion, while it is important to maintain the necessary data privacy, it is equally critical to have sufficient and valid data to understand the trend of events and the effectiveness of measures imposed, and most importantly to communicate and manage the risks. To promote data sharing, IATA’s Global Aviation Data Management (GADM) program, an aviation safety database, allows data sharing on a global level.
We are aware that the safe carriage of lithium batteries is on the agenda of many IATA member airlines, who are actively reviewing their safety risk assessments and adjusting their operational policies and procedures to tackle the issue. We also observed that some airports are also at the forefront in the industry to promote the safe carriage of goods.
Irrespective of where the lithium batteries are manufactured and transported from, all of them have to meet very stringent requirements laid out in the UN Manual of Tests and Criteria. In addition to that, the IATA Dangerous Goods Regulations also include all the provisions that apply to the safe transport of lithium battery shipments. The continued occurrences of aviation-related incidents involving lithium batteries carried as cargo or baggage goes to highlight that there is room for
Thereimprovement.arechallenges in several areas, including the poor quality of lithium batteries manufactured, which are either counterfeit or substandard.
International regulations and local legislation often have provisions on the transport of dangerous goods, including lithium batteries, which are applicable to international and domestic air transport. Offenders are therefore those who do not comply with the regulations. Some of this is simply ignorance, where people involved in shipping lithium batteries are not aware that they are classified as dangerous goods, and there are very specific requirements for transporting them by air. Of greater concern are the people who are aware of the regulations but chose not to comply with the regulations in order to reduce their
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To mitigate these challenges, governments need to step-up enforcement of safety regulations for the transport of lithium batteries, impose quality control on lithium batteries and enforce penalties on rogue lithium batteries shippers. The development of specific standards and processes by governments to support the safe transport of lithium batteries will help provide an efficient process for compliant shippers. It is critical that these standards and processes are outcome based and globally harmonized.
At the moment, it is mandated that an operator must report any occurrence of undeclared or misdeclared dangerous goods. Therefore, we have confidence that the local civil aviation authorities would have some data available. However, due to the sensitive
With lithium battery shipments coming mostly from Asia Pacific, what can you say about the current practices in place?
Is there a way to automate this process for the stakeholders involved? If yes, what is needed to make this happen?
How would you describe the current data collection and sharing process?
Data collection is dependent on the person reporting the incidents, however, the reporting process can be made easier by using existing technology such as mobile messaging app or web-based platforms and digital solutions such as IATA DG AutoCheck, a dangerous goods acceptance check validation tool that helps shippers identify misdeclaration at goods acceptance stage before it is loaded onto the aircraft.
of the challenge is that the transport of air cargo is built around trust: trust that the shippers correctly declare what they are shipping. The skills and technology of air cargo security can be an effective means to maintain this well-established system of trust and identify rogue shippers; however, such techniques are limited to locating securityrelated items, and would require the support from the governments.
How would you describe socalled offenders? And how do they get away with such malpractices?
FEATURE
Where is there room to improve?
16 AUGUST - SEPTEMBER 2022 | www.payloadasia.com INSIGHTS
For the past few decades, the industry buzzwords have been JIT, streamlining processes and simplifying the supply base. As such, many companies benefited from an overall stable global environment that has allowed them
The good news is that most companies now realise that the traditional just-in-time (JIT) model has serious flaws and are reacting and adapting their strategies. Increasingly, they are working with third-party logistics (3PL) providers to detect and mitigate supply chain risks and address current constraints and bottlenecks. Most firms now view supply chain planning as a strategic opportunity when it was merely considered a cost optimisation effort before. Things have definitely changed.
Goodbye, just in time and hello, just in case!
Words by Damon Gu, Global Head of Strategy & Business Development Toll Global Logistics
With the reopening of the Shanghai port at the beginning of June, the pandemic-induced freight backlogs are finally starting to clear. However, given the various knock-on effects, don’t expect supply chain disruptions to disappear for at least another nine to 12 months.
to optimise their supply chains to the extreme with low or no inventories and a very limited number of suppliers. It brought us to the current stage, with entire economies depending on the JIT model. But in the last few years, particularly during the pandemic, the situation has turned upside Organisationsdown.
Automation to mitigate labour shortages
The logistics sector is presently experiencing a lack of qualified labour globally. A report in Forbes in October 2021 suggested that ageing populations, technological advancements, and mental health/wellness issues all contributed to the shortage. Hence, companies are rightfully pushing for more automation, especially in warehouses. There are two significant trends here.
realise that they must plan differently to become more resilient. They are looking to diversify their supply base. They’ve thrown out JIT and replaced it with “just-in-case”, building larger inventories.
Currently based in Singapore, Damon is overall responsible to drive the strategy and business development for the global logistics division in Toll Group. His skills include creating and growing strategic customer relationships, developing needs analysis and execution of innovative solutions.
Thevolume.single
The fundamental challenge these days remains the diversification of the sourcing strategy. We talked about
China+1 for many years. But if you look at the customer base, very few companies have decided to migrate sourcing capacity from China to the rest of Asia.
What’s ahead for Southeast Asia?
Firstly, we will soon see more autonomous vehicles and material handling equipment in warehouses. Those technologies are already very mature, and we just need the appropriate regulation to commercialise them. Automation will bring leaner logistics companies.
Many other applications create visibility in real-time, allowing all parties to look at the same data and see replenishment orders and inventory status. Machine learning and robotic process automation (RPA) will greatly impact our labour-intensive industry. By letting computers run standard operating procedures, including some of the communication, fully automated, we see immediate jumps of more than 75 percent in productivity levels. But this requires close collaboration with the customer to ensure a clear understanding of the business logic and decision tree in the execution of the supply chain.
A different talent is needed to focus on the user experience in the digital space. Firms are conducting more design thinking workshops and product management training to address specific client problems. The industry is also looking for more transparency and data on environmental footprint. More companies now consider ESG and carbon emission requirements a prerequisite to bidding for their business. Hydrogen trucks are increasingly used on the roads, while shipping lines quickly adopt biofuels. ESG is no longer a compliance item. It is an opportunity for strategic advantage and a value-add for the customer.
As robots take over, skilled talent is needed
Most firms now view supply chain planning as a strategic opportunity when it was merely considered a cost optimisation effort before.
biggest problem for Southeast Asia is still the infrastructure. If you look at the port capacity, road and railway networks, warehouse space, and industrial parks, the region doesn’t even have a fraction of what China offers today. This is a challenge but also an opportunity for one of the most promising global growth areas to build a 21st-century transportation system from scratch.
17www.payloadasia.com | AUGUST - SEPTEMBER 2022 INSIGHTS
Damon Gu is global head of strategy & business development at Toll Group. He has been working in the logistics and supply chain industry for more than 23 years with various leadership roles in China, Denmark, Hong Kong and Singapore.
Then, there’s digitisation and data analytics. IoT (Internet of Things) devices can replace manual inventory recording with cloud-connected sensors that collect large amounts of data for analysis. AI and machine learning can predict customer demand based on past behaviour, allowing businesses to adjust stock levels ahead of time.
Big global firms are now pulling ahead. China is the world’s factory. They still hold a significant percentage of the manufacturing capacity in Asia. But that will change in the next 3 to 5 years. Countries like Vietnam, Indonesia, and Malaysia are taking a significantly higher share of sourcing
Toll’s subsidiary, ST Logistics, has implemented “smart cabinets” with RFID tags to manage inventories for highvalue assets in Singapore’s healthcare sector. The system automatically includes the items removed from the cabinet in the billing process, reducing the need for a clerk to manually count the items consumed and request for a bill. Healthcare professionals’ time spent on inventory issues has also been freed up for them to focus on patient care.
THE CONTRIBUTOR
Changi Airport knows it takes a whole community to become sustainable
There are also similar efforts by our air cargo partners. For example, dnata recently launched a 3.5 megawatt-peak rooftop solar power system across dnata’s cargo and catering facilities at Changi Airport. Some of our partners have started trialing solar-powered equipment at their premises. Specific to the cargo business, we are also facilitating closer industry collaboration through higher end-to-end supply chain visibility. We have put in place processes and protocols that could help improve the overall quality of the supply chain, which prevent degradation of products and reduce wastage. We have also launched initiatives to that attempt to reduce carbon emissions. One such example is the truck dock slot booking
What are the recent developments that would lead to air cargo growth?
Then there’s reinventing how we power ourselves. Over 99 percent of CAG’s Scope 1 and Scope 2 emissions come from the use of electricity in operating our terminals. As such, we concentrate our efforts on raising building energy efficiencies through constant upgrading of our systems to the best-in-class energy efficient models. We also seek to expand on-site generation of solar energy, as well as tap potential renewable sources beyond the airport.
Although airports account for only about 2 percent of global aviation emissions, we form the common platform upon which a multitude of aviation partners operate—from airlines and ground handlers to airport tenants and concessionaires. Apart from reducing Changi Airport Group’s own emissions by optimising the energy consumption of our terminal buildings, we actively engage the airport community in efforts towards a more sustainable Changi.
One is reinventing how our partners power their businesses, by supporting airlines’ and ground handlers’ transition away from fossil-based jet fuel and diesel respectively. We work closely with industry and regulatory partners on stakeholder engagement, as well as facilitate trials and studies on
Lim Ching Kiat, managing director for air hub development at Changi Airport Group, shares his insights on sustainability as the airport looks to renew its commitment to making a sustainable Changi a reality.
infrastructural needs to enable the adoption of sustainable aviation fuel (SAF), renewable diesel and electric ground service equipment. These include the conversion of internal combustion ground service equipment such as baggage tractors and forklifts to electric variants and provision of common-use charging ports.
How important is the buy-in of cargo shippers and passengers to push forth with initiatives that will help reach a sustainable future for aviation?
(TDSB) application introduced under the Changi Air Cargo Community System (ACCS). By evening out cargo lodgment and collection at the air freight terminals, the application provides greater insights to landside freight movement activities and lead to lesser truck waiting time, hence reducing carbon emissions.
The aviation industry will need a suite of solutions to address different aspects of our business and supply chain. Technology is a crucial enabler. The good news is that there are many solutions being developed, including carbon capture, which is the process of converting carbon dioxide in the atmosphere into feedstock for renewable energy, hydrogen produced in a sustainable manner, SAF etc. The challenge is ensuring scalability and commercial viability. To unlock the full potential of such emerging technologies, partnerships and collaboration across the supply chain stakeholders and among public and private stakeholders are critical. We will also need effective policies to balance the supply and demand of such emerging technologies.
To realise our common goals of making air transport (passenger and freight) sustainable, we need cleaner fuels to power aircraft, equipment on the ground, as well as to cool and light our terminal buildings. In this journey which will require innovation and effort, we focus on two broad thrusts.
Global organisations are increasingly looking at sustainability factors when making business and supply chain decisions, and they are integrating these considerations into their business operations. Many have also pledged net zero carbon-emission commitments. To this end, they require the support of their suppliers and key stakeholders in the supply chain.
INSIGHTS
Notwithstanding the current disruptive global events such as the RussiaUkraine war and Covid-19 resurgences, we see some traditional and new business sectors driving positive longterm air cargo growth, especially in the Asia Pacific region. The drivers include pharmaceuticals, high-tech shipments and cross-border e-commerce. With the Regional Comprehensive Economic Partnership (RCEP) coming into effect, we can also expect a boost in regional trade, as well as logistics and distribution activities.
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Can you share how the Changi Airport Group is contributing in making sustainable air transport a reality?
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The WCS program will also be complemented by a series of workshops, including a first-time workshop focusing on improving the efficiency of the billing settlements between airlines and freight forwarders using CASS (the Cargo Accounts Settlement System) and a workshop focused on improving performance on key market segments using IATA CEIV programs (CEIV Pharma, CEIV Live Animals, CEIV Lithium Batteries and CEIV TheFresh).Future
FAPAA held its 48th Executive Council Meeting and Annual General Meeting in Penang, Malaysia on 14-15 July 2022 with over 30 delegates from 14 countries. The trade body said fruitful discussions occurred, with member associations presenting their country reports and overview, including the very important topic of education/training. Airfreight matters were discussed on all levels and every country association gave their views on the past year and possible challenges that face members in the upcoming 12 months. FAPAA said an interesting topic on the IATA single industry programme was discussed with all delegates in favour of this, rather than the eight resolutions in place now. Overall, the meetings were a good way to follow up on the comradery that existed between the associations after 2 years of no in-person interaction due to COVID.
CORNER
The challenge now is to retain the momentum achieved even as economic and geopolitical
uncertainty grows. This is the theme of this year’s WCS. Under the banner of “Maintaining momentum, building resilience” the event focuses on how the industry can capitalize on this resilience to build an even more promising and sustainable future.
For many airlines, as passenger numbers plummeted, air cargo was a crucial source of revenue. In 2021, air cargo revenues reached a record $204 billion, which was more than double as compared to 2019 and accounted for some 40 percent of total airline revenues in 2021.
Sustainability, digitalization, and safety will be at the forefront of conference discussions, as will one of the biggest challenges facing us today, the severe shortage of ground handling personnel. Identifying new ways to attract and retain talent will be a priority.
IATA WCS ‘22: Maintaining momentum and building resilience
INDUSTRY
Words by Brendan Sullivan, Director of Cargo International Air Transport Association
The symposium will feature an Economic & Market Insights presentation from IATA’s Chief Economist Marie Owens Thomsen and from Marco Bloemen Managing Director from Seabury Cargo and a keynote address from David Shepherd, Managing Director, IAG Cargo and many more.
Air Cargo Executives Summit (FACES), which is a forum for future air cargo executives to network and share insights on career development, will also be held on the sidelines of the conference.
The 15th IATA World Cargo Symposium (WCS) taking place in London from 27 – 29 September 2022 will focus on building resilience to further strengthen air cargo’s post-pandemic prospects. COVID-19 tested the resilience of the air cargo business. Despite challenging conditions, air cargo delivered critical medical supplies and vaccines across the globe and kept international supply chains open.
In 2022, demand is expected to exceed pre-crisis (2019) levels by 13 percent and generate $169 billion in revenue. But the business environment is challenging. Inflation topped 10.3 percent in the OECD in June. The World Bank expects energy prices to soar 50 percent compared with 2021. And global growth is slowing. There is no way to sugar coat the bitter economic and political realities we face, but the desire to move goods is strong and air cargo is resilient in a crisis. Our businesses were challenged and tested during the pandemic and we emerged stronger.
There’s no doubt that the US is still the world’s largest economy, with the world’s largest aviation market. In this special supplement, Payload Asia talks to two airports rethinking their cargo game, an airline in the process of focusing on the transpacific, and a forwarder group to know more about the North American air freight market.
PAYLOAD ASIA’S US SPECIALGATEWAY
Amongst key discussions involving forwarders made during the CNS Partnership Conference in Phoenix, which amongst these discussions do you think is making headway?
focuses on niche markets. We value contributions made by various industry software providers. Still, each must invest the time and effort in making sure that the products offered fit the needs of the specific customer. Of course, in today’s fast-paced world of automation, retaining a qualified individual knowledgeable about various aspects of transportation technology is always an asset for any company.
We are pleased to announce that the Ocean Shipping Reform Act became law earlier this year, but unfortunately, the tariffs remain. As we approach the halfway point of the Biden presidency, the president appears to be leaving the tariffs in place for the foreseeable future. As the pandemic winds down, volumes will resume normal levels, and we fear that the tariffs will harm volumes and overall trade flows.
We are seeing significant progress in environmental sustainability efforts, technology, and the air cargo security regulatory environment.
Can you give us a brief background of the Air Forwarders Association? Which companies do you represent?
In March, AfA signed two stakeholder letters, one in favor of the proposed new Ocean Shipping Reform Act of 2022, and the other supporting the Americans for Free Trade coalition’s bid to address unfair tariffs from China. Can you share more about this for those who are not aware?
The Airforwarders Association is the legislative and regulatory advocacy organization for US freight forwarders and their affiliated vendor companies. Our membership consists of 200 forwarders, trucking companies, airlines, and companies working in support of freight forwarders.
In April, The Airforwarders Association or AfA launched a committee to help find solutions in alleviating airport congestion in the US. Its 200-strong membership consists of forwarders, trucking companies, airlines and valued service providers and the group has been vocal in addressing the air freight industry’s need to develop solutions in areas like technology and automation, service standards, airport facilities and infrastructure, staffing and hours of operation, and regulatory and paperwork challenges. In a brief interview, Brandon Fried, AfA executive director, shares his 2 cents on some of the pertinent issues affecting his beloved industry.
The best way to deliver goods in today’s environment is to ensure the mode of transport remains consistent with the customer’s needs and business objectives. Forwarders provide creative logistics solutions that accommodate not only time and budget considerations but also special handling and regulatory compliance. Therefore, we urge shippers to work with a forwarder to determine the most cost-efficient method while meeting their business needs.
The ocean freight carriers are enjoying one of the most prosperous periods in recent memory and are reinvesting those profits into aircraft assets. The freight forwarding industry is large and full of opportunity, and we welcome as many entities into the business as possible. Air cargo has experienced significant capacity challenges over the past two years, and we hope these new entrants will also provide services to forwarders.
What’s next for AfA?
Where do you see a disconnect from software providers when it comes to communicating the benefits of digitisation to the freight forwarding community? Do you think companies should consider creating or hiring someone who can do this role? Each forwarding company offers services and, in many cases,
Is it by air, sea, or multimodal? Do customers now have a better understanding on how much more they have to pay to avoid any shipment delay?
Our primary objective is to reduce the truck congestion prevalent throughout our nation’s major gateway airports. We have a committee focused on this issue which is in the final stages of drafting a white paper for lawmakers and regulators to comprehend the challenge further and provide resources to address our concerns. In addition, we plan to speak about this issue at a town hall meeting in Dallas next week, where we will listen to the airline, airport, trucking, and forwarder stakeholders to focus on solutions. Finally, of course, we will continue our ongoing educational efforts and are actively planning our upcoming annual event, AirCargo 2023, which will take place in Nashville on February 12-14.
A conversation with AfA executive director
What can you say about the recent move of major shipping lines into air cargo? Do you expect this trend to continue?
In your opinion, what’s the best way to deliver goods right now?
21www.payloadasia.com | AUGUST - SEPTEMBER 2022 SPOTLIGHT
Brandon Fried
Miami Airport shares upcoming plans to support its cargo ambitions
Which international cargo routes does MIA connect to?
Miami International Airport saw record cargo volumes over the last 2 years, finishing in 12th spot of the world’s busiest cargo airports, according to recent data. In an interview, Payload Asia talks to Dimitrios “Jimmy” Nares, section chief for marketing at Miami-Dade Aviation Department, as he gives a rundown of the airport’s ambitions to grow its cargo business.
Has the airport been affected or benefitted with disruptions on certain routes?
What are the issues airports currently face on ground?
The airport has no simple way to acquire additional land to accommodate its growth. The solution for MIA is to build a Vertical Integrated Cargo Community or VICC facility.
Miami International Airport (MIA) had a record year for air freight in 2020 and surpassed that record by 18% in 2021 when it reached 2.75 million tons of air freight. This robust growth has continued in 2022. Halfway through the year, the airport has posted +3.25% year-over-year in air freight tonnage and is poised to have another record year for the third year in a row.
The top four operators that bring in cargo business at MIA are Atlas, UPS, Tampa (Avianca) Cargo, and LATAM Airlines group. Midway through 2022, all four airlines recorded over 100,000 US tons of total freight and posted year-over-year growth in freight volumes: Atlas - 231,230 US tons (up 14.14%); UPS - 149,960 US tons (up 2.44%); Tampa or Avianca - 139,449 US tons (up 19.66%); and LATAM - 124,044 US tons (up 4.12%).
MIA has an extensive cargo route network connecting 93 international cities. The airport is the true gateway to Latin America and the Caribbean with direct freighter service to 29 cities in South America, 8 cities in Central America, 7 cities in Mexico, and 33 cities in the Caribbean & The Bahamas, respectively. MIA accounts for 83% of all US air imports and 79% of all US air Exports with this region.
Additionally, MIA has direct freighter service with 11 cities in Europe, the Middle East, and Africa, and with 5 cities in Asia. Since the pandemic, which led to worldwide disruptions in supply chains, MIA has benefited in terms of its cargo operations. In its record year for total freight in 2021, cargo had increased by 18% and cargo flights increased by 11.3%, respectively, over its previous record year in 2020.
How did the airport perform in this first half?
22 AUGUST - SEPTEMBER 2022 | www.payloadasia.com COVER STORY
Who are the main operators that bring in cargo business to the airport?
The aviation industry as a whole, along with supply chain partners and ground handlers, have been
23 COVER STORY www.payloadasia.com | AUGUST - SEPTEMBER 2022
With unprecedented growth in cargo at MIA in recent years, and with the airport nearing its cargo capacity, MIA’s capital improvement plans for its warehouse facilities have been accelerated.
receive a Sustainable Cargo Airport of the Year Award from another trade media source earlier in the year. In addition to reducing its carbon footprint, the energy savings will help MIA decrease its operating costs and lessen the financial impact on current and prospective airlines, which in turn supports the growth of MIA and the local economy.
of energy-efficient lighting, domestic water and heating, ventilation, and air-conditioning (HVAC) system upgrades. The project will save $3.2 million annually in utility costs, approximately 10% of the airport’s annual electrical cost. Phase II followed Phase I in 2018, which will generate a total of more than $40 million in energy and water savings through 2032. Projects such as these, in which MIA incorporates sustainability practices and solutions while it renovates its facilities, have helped the airport to
dealing with a tighter labor force since the pandemic began. At the same time, there has been increased demand for cargo capacity and cargo movement. Therefore, having adequate staffing levels to move cargo has become more challenging for the industry.
As a department of the Miami-Dade County government and the County’s overall commitment to reducing its carbon footprint, MIA is committed to sustainability initiatives. In 2020, MIA and Florida Power and Light Services (FPLS) completed Phase II of its Sustainability Project at MIA, one of the largest in the eastern United States. The project included the installation of $45 million worth
What are the airport’s plans in terms of sustainability?
How has the pandemic influenced the airport’s overall direction in the near term and long haul?
Which technologies or infrastructure are you looking at for future investment?
Due to sustained growth in cargo at MIA and the airport nearing its cargo capacity, MIA will be investing in its cargo infrastructure. MIA’s current on-airport cargo capacity is estimated between 2.6 and 3.0 million annual tons of cargo, while it reached 2.75 million tons in 2021. MIA is forecasted to reach 3.7 million tons in 2031, and 4.9 million tons in 2041. In addition, the airport has no simple way to acquire additional land to accommodate its growth. The solution for MIA is to build a Vertical Integrated Cargo Community (VICC) facility which will be 5 stories high with 1.7 million square feet of cargo handling space, and capable of handling over 4 million tons of cargo when completed. VICC will advance the development of modern, hightechnology new cargo infrastructure at MIA, and set a new standard for air cargo throughput efficiency, security, and resilience. The project will nearly double MIA’s cargo capacity and help the airport keep pace with forecasted growth in cargo for years to come.
Aside from continuing to build the best flight network, the biggest driver
In its second quarter financial results, leading North American carrier United Airlines recorded the highest second quarter revenue in the company history, delivering a profitable quarter for the first time since COVID-19 began, all this despite record-high fuel Inprices.the
SPECIAL FEATURE
Our international network has grown significantly over the last few months, strongly driven by high passenger demand, which is a very important development coming out of the pandemic. Our Cargo team continues to be involved in discussing new international routes and deciding which aircraft types are the best fit for both passenger and cargo demand. This setup enables us to make the right network and fleet decisions to best serve our passengers and cargo Wecustomers.largelyincreased
macroeconomic trends affecting US and global aviation.
Describe to us your fleet and network schedule. How does this meet your client’s requirements and your long-term plans?
our customers with more solutions and options to choose from on this critical trade lane. Looking ahead, we will be focused on growing our transpacific flight network, with a focus on Australia, New Zealand, Singapore, and Japan. We are also looking forward to increasing our flight activity in other key markets in the Far East, with COVID restrictions and regulations determining the timing of our return.
How is the company looking to achieve growth in the near term?
our transatlantic footprint in our summer flight schedule, which has greatly benefited
United Airlines emerges stronger on the other side as it reverses to profit in Q2
Looking ahead, we will be focused on growing our transpacific flight network, with a focus on Australia, New Zealand, Singapore, and Japan.
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second quarter, through a combination of cargo-only and passenger flights, United transported around 275 million pounds of freight, including COVID-19 vaccines and other essential supplies, which included nearly 33 million pounds of vital shipments, such as medical kits, personal protective equipment, pharmaceuticals, and medical
Marcoequipment.Vezjak, cargo sales director for North America at United Airlines, gives us a glimpse of the carrier’s plans, with comments on current
with SAF, United Cargo has also started looking at other sustainable opportunities such as biodegradable pallet wraps and evaluating carbon emissions associated with its trucking network. By creating a framework for procuring low-carbon goods and services, United Cargo continues to be the leader in eco-conscious culturebuilding within the industry.
What’s your take on the industry’s individual initiatives on sustainability? Is it sustainable?
behind growth is our strong focus on our customers. We listen to our customer’s needs and ideas and try to introduce solutions fast, because the “speed to market” is an essential ingredient for success in air cargo. We continue to be creative with finding innovative concepts and building longterm programs and partnerships. We also continue to invest in our specialty product services and infrastructure. Being a trusted carrier partner to transport our customer’s most valuable and (time) sensitive shipments allows us to continue to grow in this critical sector.
SPECIAL
How prepared is the airline to face ongoing challenges?
As always, we will do our best to serve our customers in any way possible, and we will take more actions to further improve throughout our winter schedule. We foresee strong demand throughout the end of the year and likely beyond. There are a lot of different factors that can impact the situation, but we are ready to provide solutions to our customers.
uncertainties. As always, we continue to closely monitor the situation and to prepare strategies in order to quickly adopt and adjust to new developments.
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It’s great to see the industry taking strides in the right direction, and we are keen to find many ways to take action to reduce our carbon footprint. Our overall goal is to partner with more freight forwarders to join our first-of-its-kind Eco-Skies Alliance program to work across industries and find other innovative paths towards decarbonization. In conjunction
We overcome challenges by working together. On one side, we strongly believe that we have the best air cargo team in the industry, and together we have accomplished more than we could have dreamed of. The team’s passion, dedication, and willingness to compete and succeed is inspiring and keeps us motivated.
How long do you expect flight cancellations to continue, and how do you plan for peak?
On the other side, we have developed very strong partnerships with our customers and together we feel ready to tackle any challenges along the way. We have great confidence in the way we collaborate with our partners, which fosters trust and creates momentum between everyone involved. Looking back at the last two and a half years, we have faced countless challenges, yet were able to not only tackle them, but come out stronger on the other side.
Which issues do you foresee will bring headwinds for air cargo in the near term?
Geopolitical situations and continued COVID restrictions in some markets present current challenges and future
FEATURE
26 AUGUST - SEPTEMBER 2022 | www.payloadasia.com
SPECIAL FEATURE
Airports forms one of North America’s largest public airport systems and positions Houston as the international passenger and cargo gateway to the south central United States and as a primary gateway to Latin America.
The Houston Airport System is a department of the City of Houston. It’s composed of three airports: George Bush Intercontinental Airport (IAH), William P. Hobby Airport (HOU), and Ellington Airport/Houston Spaceport (EFD). In 2021, Houston Airports welcomed 45 million passengers and moved 537,560 metric tons of air cargo. In 2019, Houston Airports saw nearly 60 million travelers and moved 525,300 metric tons of air Houstoncargo.
A look at Houston’s three-hub airport system
Hobby Airport is the first and only airport in North America to earn a 5-Star Skytrax rating. For a 5th consecutive year, Bush Airport maintains an exceptional 4-Star Skytrax rating. The Skytrax World Airport Star Rating is a global benchmark of quality evaluation for the aviation industry.
Can you tell us more about the Houston Airport System? Where does IAH stand in relation to the other airports?
Houston is a strategic hub for the importing and exporting of machinery and equipment for oil and gas, aerospace, construction, medical and various sectors. As the most diverse city in the United States, Houston is receiving an increasing demand for a wide variety of international products. Houston has a large manufacturing base for industrial machinery and equipment and chemicals needed globally. In fact, from January 2022 to June, the Houston/Galveston Customs District ranked 5th in the nation for total trade including all modes of transportation. Houston also has the largest year-over-year growth, from 2021 to 2022, among the top 20 US Customs Districts.
Houston Airports forms one of North America’s largest public airport systems and positions the Texas city as the international passenger and cargo gateway to the south central United States and as a primary gateway to Latin America. Luis Avilés, air cargo development manager, gives a rundown of the airport group’s cargo and passenger business.
Bush Airport handles more than 97% of the air cargo in Houston. According to 2021 ACI-NA rankings, Bush Airport ranked 18th in North America and 14th for international cargo. Bush Airport moves cargo on more than 20 commercial passenger airlines, 14 all-cargo carriers and on ad-hoc cargo charters.
Bush Airport receives a wide variety of perishable products for regional distribution or while in-transit between Latin America and the world. Bush Airport offers cargo customers a facility, operated by dnata, that is built for perishables. Two refrigerated chambers can handle perishable freight for grocery chains. Examples of some perishable products are Chilean and Norwegian salmon, California citrus, Peruvian asparagus, US beef and Mexican avocado, mango and key limes. dnata handles about 20 million kilograms of air and ocean perishable cargo each year at Bush Airport.
How did the airport perform in this first half? Who are the main operators that bring in cargo business to the airport?
Which technologies or infrastructure should airports consider in order to drive growth?
What are the issues airports currently face on ground? How has the pandemic influenced the airport’s overall direction in the near term and long haul?
Bush Airport currently offers international freighter service to Luxembourg, Glasgow-Prestwick, Frankfurt, Hong Kong, Istanbul, Liege Abu Dhabi, Doha, Dubai and Tel Aviv. Cargo routes still paused because of the COVID-19 pandemic include Taipei and Paris CDG, though both markets are currently served through commercial passenger service.
Bush Airport runs two cargo centers, central cargo and east cargo, at full capacity. The team at Bush Airport is now looking to expand infrastructure to allow for future growth, especially as domestic cargo amounts continue to increase.
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Houston is a strategic hub for the importing and exporting of machinery and equipment for oil and gas, aerospace, construction, medical and various sectors.
The disruption of certain routes does affect international trade. For example, routes flown by Air China to Beijing, Ethiopian Airlines to Addis Ababa or United Airlines to Sydney create challenges for global reach to those critical regions. In July, Air New Zealand just restarted passenger service to Auckland. In contrast, since 2018, domestic cargo continues to grow steadily with no signs of stopping.
What are the airport group’s plans in terms of sustainability?
In support of the City of Houston’s Climate Action Plan, in 2019 Houston Airports began promoting its Sustainable Management Plan, SMP. It’s an initiative to maximize operational efficiency while strengthening sustainability in multiple areas: economics, environmental and social priorities to address all key sustainability categories (solid waste/recycling, energy, water, greenhouse gas emissions, sustainability design, sustainability assets and infrastructure, and sustainability procurement).
For belly-freight only traffic, the largest operators are United Airlines, All Nippon Airways and Southwest Airlines. For freighter service only, FedEx, UPS, Air Transport International, Atlas Air and Cargolux have the largest traffic. Bush Airport also moves large volumes through carriers operating passenger and freighter service, like Air France, Turkish Airlines, Lufthansa, Emirates Airlines and Qatar Airways.
SPECIAL FEATURE
New facilities allow the airport to handle more specialized, higher value commodities, like pharmaceuticals, perishables, auto parts, aerospace and e-commerce.
Which international cargo routes does IAH connect to? Has the airport been affected or benefitted with disruptions on certain routes?
The plan specifies two categories—resource-based and functional—to identify the issues essential to the HAS journey to becoming a sustainable organization and to defining early operational areas of focus. The plan’s resource-based priorities are: energy, solid waste/recycling, water and greenhouse gas emissions, while the functional priorities are: sustainable design, sustainable assets and infrastructure, and sustainable procurement.
Bush Airport continues to gain momentum in 2022. The first six months of the year show a 10.3% gain when compared to the same timeframe in 2021. The airport is tracking a 9.3% increase in domestic cargo and an 11.7% increase in international cargo. Domestic cargo continues to increase dramatically, since 2020, because of e-commerce and the demand for medical equipment. International cargo saw a relevant decline with the loss of belly-freight capacity, but international cargo is recovering quickly with long-haul commercial air passenger service now re-established.
Houston Airports is the recipient of sustainability planning grants from the Federal Aviation Administration. Through this study, Houston Airports is committed to a continuous improvement approach to sustainable management by promoting economic, social and environmental excellence through actions that enhance the airport system’s mission of connecting people, businesses, cultures and economies of the world to Houston.
More warehouse space will allow the airport to expand its air cargo holding capacity. The new facilities also invite innovative technology to be developed and used to streamline and automate the cargo process through automated guided vehicles and robotics technology with terminals.
For belly freight, the largest operators in Houston include United Airlines, All Nippon Airways and Southwest Airlines. For freighter services, FedEx, UPS, Air Transport International, Atlas Air and Cargolux have the largest traffic.
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