Payload Asia | August-September 2023

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MCI (P) 002/07/2016 ISSN 2010-4227

THE TRADE MAGAZINE FOR THE ASIA-PACIFIC AND MIDDLE EAST REGION VOL. 39 NO. 4 AUG/SEPT 2023

AI TAKE ON MODERN LOGISTICS WORKPLACE

FREIGHT FORWARDING ISSUE


3rd annual conference

Networking the air cargo logistics & freight forwarding industry sectors. aircargoevent.net

Organized by Supported by

SAVE THE DATE 4th-6th Dec. 2023 Abu Dhabi U.A.E W Hotel Yas Island

Co-hosted by

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150 Orchard Road, #07-05 Orchard Plaza, Singapore 169206

EDITOR’S NOTE EDITORIAL/PUBLISHER Keen Whye Lee Publisher publisher@harvest-info.com Giullian Navarra Chief Editor editor-pla@harvest-info.com

OPERATIONS Mari Vergara Country Manager manager-ph@harvest-info.com

MARKETING Lali Singson Marketing Manager mktg@harvest-info.com

SALES Simon Lee Hong Kong, Europe and Middle East sales@harvest-info.com

Dear reader, Mixed signals in the market coupled with geopolitics and trade woes make for great conversation amongst air cargo enthusiasts and experts, and with more confidence from freight forwarders going into peak season, will we see the same confidence reflect from buying consumers, retailers and the whole supply chain to even claim peak demand, at least for this year? In this issue, we take a closer look at the freight forwarders who are constantly monitoring the market trends with advanced data-gathering and storage tools to help them make the right decisions amidst sliding rates, rising fuel prices, flat demand and more. The logistics industry heavily relies on accurate and up-to-date information for efficient supply chain management, and on page 16, we feature Singapore-based company ShareLook who has been working on a solution called ShareBot that can ultimately make life simpler for logistics, supply chain and procurement specialists through knowledge and data sharing powered by artificial intelligence. If you are in Asia Pacific, indicators suggest some positive activity that will hopefully generate more demand towards the end of the year. In the C-suite section, we talk to Agnes Lau, commercial chief for Singapore/Malaysia cluster at Schenker Singapore, as she shares her outlook for the city-state, as well as some of the roaring innovations that the company has introduced to keep up with its targets. This issue will not be complete without insights for freight forwarders, including key take-aways in handling humanitarian and time-critical missions from air charter specialist Chapman Freeborns, as well as interviews with SAAA @ Singapore and The Airforwarders Association. Catch up on the latest news and updates from the air freight supply chain, and enjoy reading the latest pages of Payload Asia.

Chua Chew Huat Asia Pacific sales-sg@harvest-info.com Matt Weidner North America mtw@weidcom.com

TECHNICAL SUPPORT MJ Magsalin tech@harvest-info.com

GRAPHIC LAYOUT Tyrone De Los Santos ronds.creatives@gmail.com

Giullian Navarra Chief Editor

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CONTENT PAGE

INSIGHTS

24

Setting up freight forwarders for humanitarian relief mission success

EVENTS

28

Airlines sign first safety leadership charter in Vietnam

24

COMPANY PROFILE Keep it short, simple: AI solutions for the modern logistics workplace

NEWS

SPOTLIGHT

04 Cathay Cargo links to

13 Atlas Air welcomes 2nd freighter

05 Air India sets massive 5-year

14 Guillaume Halleux takes top

Kuehne+Nagel’s booking system plan for cargo

for MSC Air Cargo

commercial post at Swissport

06 ANA to consolidate cargo

operations at Narita airport

07 Changi inks agreement to help

develop Egypt’s Cairo Cargo City

08 deugro Thailand moves urgent

over-sized cargo to the US by air

20 AfA’s Brandon Fried through

the US air freight looking-glass

21 A conversation with SAAA@ Singapore’s Steven Lee

COMPANY PROFILE

INSIGHTS

16 Keep it short, simple: AI

23 CEVA strengthens presence in

solutions for the modern logistics workplace

India’s fast-evolving logistics sector

24 Setting up freight forwarders

09 Kerry Logistics bounces back

for humanitarian relief mission success

in Q2

10 WFS celebrates cargo handling milestone in India

11 DHL Express transforms Incheon gateway facility

12 AP Moller-Maersk tests sea-air cargo solution via Oman

2

C-SUITE

EVENTS

18 Agnes Lau gives a rundown on

28 Airlines sign first safety leadership

Schenker Singapore’s operations

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charter in Vietnam


10 0

th

27 October 2023 Awards banquet and business networking at Four Seasons Hotel Singapore

SCAN THE QR CODE TO BOOK A SEAT OR TABLE www.payloadasia.com


NEWS - CARRIERS Korean Air to mandate e-AWBs for general cargo starting January

Korean Air will begin its full-scale digital transition to electronic air waybill (e-AWB) to replace conventional paper documents and will apply to general cargo departing from Korea bound for North America, Europe, Japan and other select markets. The airline said the paperless transition will streamline the entire process from reservations to final delivery and enhance data quality and accuracy. It will also enable the airline to practice its ESG initiatives. Korean Air held consultations and completed trial operations with all stakeholders, cargo clients and forwarders to prepare for the transition. The airline will mandate e-AWB for Korea-outbound cargo starting January next year, with plans to include all loaded cargo departing from global stations in due course.

Cathay Cargo links to Kuehne+Nagel’s booking system Cathay Cargo is widening its sales booking system through a two-phase The service will be available in the distribution by placing its rates and application programming interface Americas and later on in Europe and will allow users direct access to space, availability in Kuehne+Nagel’s own (API) pilot scheme. rates, and instant confirmation on Cathay Cargo’s inventory through the forwarder’s transport management system. This is the first time that the airline has enabled bookings to be available from a freight forwarder’s host system, which is part of Cathay’s wider digital strategy to improve operations and customer experience. It plans to make the service available to other global accounts this year. New York, Frankfurt, Ho Chi Air Premia adds Frankfurt and Newark Angeles, Minh, Bangkok, and Narita. to growing cargo network The Korean carrier estimates between Air Premia is expanding its cargo network and has added Frankfurt and Newark to its summer flight schedule out of Incheon Airport (ICN), with Globe Air Cargo Korea promoting the cargo capacity for the airline. Globe Air Cargo Korea will manage cargo sales and reservations and make arrangements for regular and full charter flights. With five B787-9s, it operates passenger flights to Los

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150 and 200 tonnes of cargo passing through its Incheon warehouse each week. These include e-commerce shipments, electronic equipment, machinery, and auto spare parts bound for Asia, Europe, and the US. The Korean carrier airline entered the US when it added flights to Los Angeles (LAX) last year. It started its operations at Newark on 22 May and will offer charter services this summer for Frankfurt, Barcelona, and Oslo.


NEWS - CARRIERS Air India sets massive 5-year plan for cargo Air India is gearing up to play a key role in positioning India as a freight and logistics hub and has laid out initiatives to contribute to the development of an efficient air cargo supply chain for the country’s exports. The flag carrier plans to grow its cargo capacity by 300 percent in 5 years and is looking to utilise space on its passenger planes to be able to move 2 million tonnes by 2028. Air India is expecting some widebody aircraft to join its fleet this year and has firm orders for 34 A3501000, six A350-900, 20 Boeing 787 Dreamliners, and 10 Boeing 777X. The airline said the added capacity will be augmented with the launch of

value-added products and services, domestic network with interline including pharma logistics, door- partnerships and trucking to-door transport, e-commerce, connections throughout its network. carriage of valuables, pets, cold chain The flag carrier currently transports for perishables, mail, trans-shipment cargo to over 40 international and 38 with connection windows, and more. domestic destinations and unveiled its new livery as part of a major push Air India is also expanding its for rebranding.

Asian carriers extend SAF procurement option for air cargo

shippers in response to requests. The Japanese carrier can now issue CO2 reduction certificates not only to forwarders with direct business with Airlines based in Asia are taking contributions to be used to purchase the carrier but also to shippers based on the transportation record from another step towards more additional supply. their forwarders. Certificates will be sustainable operations as Korean Air and Japanese carrier All Nippon ANA meanwhile has extended its issued in the joint names of both Airways have extended new options existing SAF option for air cargo to shipper and forwarder. for air cargo operators to contribute to the use of sustainable aviation fuel. Korean Air has launched its SAF programme to air cargo customers as part of the airline’s ongoing effort to reduce carbon emissions and raise awareness in the sector to achieve net-zero carbon emissions by 2050. The airline will share with customers the amount of carbon emissions reduced by using SAF, with the

Indonesia’s Express Cargo Airlines starts commercial operations Express Cargo Airlines has gained its domestic, non-scheduled Air Operator’s Certificate (AOC) in Indonesia and started commercial flight operations on 13 August. The carrier is one of three cargo start-ups launching in Indonesia this year, alongside BBN Airlines Indonesia and Raindo United Services, each with a single

B737-800(BCF). Express Cargo Airlines operates a single B737-300(F), PK-ECA (MSN 24789), based out of Jakarta Soekarno-Hatta airport, and a Cessna (single turboprop) C208EX Grand Caravan for regional cargo flights. It currently offers charters to eastern islands in the country.

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NEWS - AIRPORTS ANA to consolidate cargo operations at Narita airport All Nippon Airways plans to automated guided vehicles (AGVs) consolidate its cargo operations as well as automated racks to at Narita Airport next year as Narita move unit load devices across the International Airport Corporation warehouse. announced plans to construct a new cargo facility, which will be leased ANA is currently using six separate by the airline. warehouses at Narita, and with the completion of the new facility in Cargo Building 8, scheduled to October next year, the airline will begin service in October 2024, consolidate its cargo operations into will have a total area of around adjacent locations Cargo Building No. 61,000 square metres, with 7 and the newly constructed Cargo some 38,000 square metres of Building No. 8. It will also expand warehouse space. Automation will its animal and valuables storage be a key feature in the new facility, facilities to meet a wide range of which will be equipped with transportation demands.

Hong Kong International’s air cargo volumes continue rebound Cargo volumes at Hong Kong in cargo volumes in July, up 12.6 International Airport continued on its percent, with traffic to and from path to recovery in July as the airport North America, the Middle East and recorded a year-on-year increase Europe seeing significant growth of 3.8 percent over the same during the month. month last year at 361,000 tonnes. Month-on-month, this represented Considering the last 7 months, an uptick of 1.7 percent over June as cargo volumes at Hong Kong airport flight movements reached 24,030, slid 4.2 percent year on year to up 7.4 percent over the previous 2.4 million tonnes, as the airport month. handled 142,840 flight movements, almost double the flights (94 percent Records say exports contributed the growth) seen over the same 7-month most to the year-on-year increase period last year.

Swissport receives ISO certification at multiple airports across Spain Swissport Spain received its ISO more than 25,000 square metres of 45001:2018 certification from state-of-the-art warehousing space. an independent accreditation body on 14 July 2023 for nine airports Swissport’s air cargo center at Josep with 12 business lines across the Tarradellas Barcelona-El Prat Airport country. This accreditation certifies is certified by IATA’s CEIV Pharma, the company as fully compliant whilst the cargo facility at Madrid– with health and safety systems and Barajas Airport is expected to be regulations. certified within the near term. In September last year, Swissport Spain The ground and cargo handler has received the Ethical Management been operating in Spain since 2007. It certification, an affirmation of the now operates at 15 airports in Spain company’s pursuit of the well-being of and manages five air cargo centers employees, integrating sustainability, across the country with a total of inclusiveness, and profit.

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NEWS - AIRPORTS Etihad Cargo arrives at China’s Ezhou Huahu Airport Etihad Cargo operated its inaugural freighter flight to Ezhou Huahu Airport on 18 August with its Boeing 777-200 freighter, marking the start of freighter service between Abu Dhabi and Ezhou.

Etihad Cargo’s expansion to Ezhou follows the carrier’s announcement that it has expanded its reciprocal block space agreement with SF Airlines to increase cargo

capacity from China to overseas via Abu Dhabi.The carrier is the first international airline other than SF Airlines to operate flights to the airport, which is expected to open 10 international cargo routes and 50 domestic routes by 2025, with an annual cargo and mail throughput of 2.45 million tonnes.

Located in Hubei province, Ezhou Huahu Airport was developed as Asia’s first dedicated, professional cargo airport. Equipped with a 23,000-sqm cargo terminal and a 700,000-sqm freight transit centre, the airport serves as a gateway for air trade between China and the rest of the world.

Changi inks agreement to help develop Egypt’s Cairo Cargo City Changi Airports International (CAI) has signed an agreement with Cairo Airport Company, which is expected to help position Cairo International Airport as a cargo and logistics hub. The air hub is one of the busiest airports in Africa and the largest airport in Egypt in terms of passenger and cargo traffic.

The Singapore-based airport consultancy firm will work with the airport operator in Egypt for a feasibility study for the development of Cairo Cargo City, a new area at Cairo International Airport that has been earmarked for cargo and logistics development. Another consultancy agreement was signed for the passenger business.

Air New Zealand’s ‘Mission Next Gen Aircraft’ calls for airports Air New Zealand is looking for two airports to further support its efforts towards decarbonisation and has opened an expression of interest, as part of selecting a route to fly its commercial demonstrator aircraft from 2026. The move is part of the airline’s ‘Mission Next Gen Aircraft’ launched in December last year, where the carrier announced partnerships and plans to launch the first-zero emissions demonstrator flight by 2026.

2030. The airline will work with its partners to develop the technology and associated infrastructure required to make this a reality. The commercial demonstrator aircraft will be either electric, hybrid or hydrogen fuel celled and will initially operate as a cargo-only service. The

airline said it will announce the type of demonstrator aircraft it will use from 2026 by early next year. “Decarbonising aviation is not easy, and we’ve got a lot of work ahead of us, but we’re committed to reducing our emissions as quickly as we can, and this process is another step in the right direction,” said Kiri Hannifin, Air New Zealand’s chief sustainability officer.

Air New Zealand is working towards its ambition of flying next generation aircraft on its domestic network from

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NEWS - LOGISTICS deugro Thailand moves urgent over-sized cargo to the US by air

The company provided a multimodal door-to-door solution from a production facility in eastern Thailand to a facility in Houston, TX through various aircraft types and truckdeugro successfully delivered 37 trailer configurations. It took nine over-sized pipe spools for an urgent charter flights to transport urgent facility start-up, from Thailand to components with a total volume the US, with the support of its air of 213 metric tonnes (1,628 cubic charter team and local offices. meters). For this particular cargo, the forwarder explained that shipments Preparations on the ground were also of this size are usually shipped made to ensure the delivery of the by sea, or via expedited direct replacement components from the ocean charter in urgent cases; factory in Rayong Province to U-Tapao however, only transporting via Airport, and then from George Bush air freight could meet the date Intercontinental Airport in Houston needed for the cargo to be on site. onto the facility after arrival.

DSV to widen presence in Singapore with new facility DSV continues to expand its footprint in Singapore and has partnered with logistics realtor LOGOS to develop the forwarder’s largest warehouse in the city state, nicknamed DSV Pearl. This will be the first greenfield builtto-suit facility in Singapore, which will be designed specifically for DSV and with environmental stewardship in mind. Both companies will invest a total of $200 million in the new facility, which is targeted to be completed by mid-2025. The warehouse will cover around 720,000 square feet, with convenient access to key transport

infrastructure like Jurong Port, Changi Airport and the upcoming Tuas Megaport. The five-storey ramp up warehouse will occupy a large floor plate of 136,000 square feet per floor, complete with a high ceiling and advanced warehouse automation systems to increase efficiency in storage, retrieval and processing of goods. It will provide advanced warehousing solutions to serve growing regional demand in various sectors across Southeast, including pharmaceuticals, retail, consumer goods and high tech.

Nippon Express buys furniture logistics specialist Tramo Nippon Express is looking to widen its tracks in international markets and has agreed to acquire Tramo group, a SwissItalian furniture logistics specialist, for an estimated 10 billion yen (US$68 million). The deal, which is scheduled to be completed

by 2 November, includes the 18 companies under the Tramo group, including Swiss-based holding company Tramo. The purchase will be made through subsidiary Nippon Express Italia.

trend amongst high-end fashion houses of moving into other products and services, such as furniture and hotels. The Japanese logistics group will tap Tramo’s know-how and furniture distribution networks in Europe and North America to The move comes amidst an ongoing serve the company’s clients in the fashion industry as they expand their business portfolios. Nippon Express said it will actively use M&A to enter new areas and enhance group synergy, according to a statement in early April. In May, the Japanese Holdings Company acquired Austrian logistics player cargo-partner, expanding its network in Central and Eastern Europe.

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NEWS - LOGISTICS Kerry Logistics bounces back in Q2 Kerry Logistics’ performance in the first half of this year may have already seen the company ‘bottom out’ after the sharp drop from the extreme highs seen during the pandemic, as the Hong Kong-based logistics player saw 30 percent quarter-on-quarter growth for Q2.In its interim results, the company recorded a net profit of HK$368 million for the first half, down 85 percent versus the same period last year, with revenue dropping 47 percent year-on-year to HK$25,315 million.

Recording the only segment loss for the first half is the company’s Kerry Logistics Network, said 2023 e-commerce and express business. is shaping up to be a tough year for The group expects major performer the industry with normalising rates Kerry Express Thailand to stabilise in post-pandemic but there are packets the fourth quarter of next year. of improvement for both rates and volumes in its key markets.

Across the business, Kerry Logistics’ integrated logistics remained stable in H1 with a segment profit of HK$718 million thanks to its operations in China and Thailand, whilst the freight forwarding business recorded an 82 percent year-on-year contraction in segment profit in the first half at Vic Cheung, Managing Director of HK$621 million.

B&H Worldwide delivers first engine shipment for SIA Aerospace logistics specialist stand, the engine will be stored at a at a humidity level of 64-65 percent B&H Worldwide was recently constant temperature of 23-24°C and until required. commissioned by Singapore Airlines to transport a GE90 engine from Paris Charles de Gaulle Airport to the citystate and has successfully completed its first delivery and storage on behalf of Singapore Airlines. B&H completed the shipment in 3 days with the 10,700-kilogram engine now safely stored within the climate-controlled environment of its warehouse facility at Singapore Changi Airport. Mounted on a special

DB Schenker unveils plans for ‘RedLion2’ in Singapore German logistics firm DB Schenker in August announced plans to invest more than €100 million for a new zero-emissions logistics facility in Singapore’s Tampines area, which is scheduled to be completed by the first half of 2025. Dubbed RedLion2, the 600,000-sqft facility will be the company’s largest investment in Singapore, surpassing the previous investment record for Red Lion, a S$163 million (€101 million ) warehouse opened in 2020 at the free trade zone of the Airport Logistics Park of Singapore.

aims to support the semiconductor and healthcare industries and will be designed to house advanced automation solutions, including intelligent conveyor systems, automated storage and retrieval systems, and autonomous guided vehicles.

RedLion2 will also be equipped with several sustainable features, including over 4,000 solar panels, to ensure that the facility is carbonnegative. With the addition of the future facility, DB Schenker’s facilities in Singapore will occupy over four million square feet of land across 17 DB Schenker said the future facility facilities.

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NEWS - GROUND HANDLING WFS celebrates cargo handling milestone in India terminal operators, in partnership with Bangalore International Airport Limited (BIAL). WFS said it plans to use its resources and capabilities to optimise and grow cargo capacity with a twophase plan to significantly increase the size of the cold chain facility and double the existing annual capacity to over 150,000 tonnes, to WFS has certainly brought its Group, has signed 3-year and 5-year support India’s pharmaceutical and international cargo handling contracts with 20 global airlines since healthcare markets.The company expertise into the Indian market and opening its first cargo terminal in has already introduced new forklift has already won handling contracts India at the end of May. The leading equipment and cargo tugs in with multiple airlines within the first air cargo handler has a 15-year license Bengaluru to improve operational three months of opening a facility. to operate at the Kempegowda efficiency, including new generation International Airport Bengaluru (BLR), electric vehicles in view of its global The company, a member of the SATS becoming one of the two main cargo sustainability commitment.

dnata Singapore to harness AI-powered cargo solutions dnata has partnered with technology cargo’s exact dimensions, volume solutions provider Speedcargo to data, images, and labels to provide deliver cutting-edge cargo services a comprehensive digital record. This for Etihad Cargo’s daily flights information is then fed into Assemble departing at Singapore Changi which can create a digital plan for Airport. The company is leveraging dnata’s cargo handling teams to find artificial intelligence to help overall the optimal method of building a logistical efficiency, digitisation and pallet. cargo capacity optimisation for the carrier’s operations in Singapore The move follows Etihad’s decision to where it has implemented AI- implement the AI-based technology powered solutions ‘Cargo Eye’ and after successful trials, with both ‘Assemble’, which have been installed solutions planned to be integrated in its facilities. into dnata’s existing warehouse management system. dnata said it is Cargo Eye uses vision-based 3D working with partners to roll out the technology to scan and capture a service at other global stations.

MASkargo upgrades dolly fleet with digital tracker Malaysian carrier MAB Kargo Sdn Bhd (MASkargo) is empowering its ground team to take complete control over ground operations as it rolled out a digital tracking solution for optimizing the use of its 20-foot dollies. There are 16 units in MASkargo’s dolly fleet and the new digital system will enhance utilization by automatically allocating units within the airport during peak hours and enhancing on-time performance. The system features a geo-fencing alarm within 1.5

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kilometres of coverage and was handed over by Apecha Sdn Bhd, who completed the device installation and initial testing of MASkargo’s ground fleet. Abu Bakar Kassim, MASkargo’s ramp handling manager.said the company is on the lookout for unique and cost-effective ways to improve terminal operations. In working with the LoraWAN gateway and AWS IOT platform, we have eliminated manual searches and are able to monitor the dollies inventory in real time for quick retrieval,” Abu Bakar added.


NEWS - EXPRESS DHL Express transforms Incheon gateway facility amongst cargo terminal operators Incheon. To move import and export within ICN. shipments efficiently at the Incheon Gateway, DHL Express will utilise a DHL cited growing international fully automated sorting and handling express imports and exports system that can process over 10,000 with Asia-Pacific neighbours like parcels an hour. The company The enhanced Incheon gateway Singapore, Japan, China, Australia, connects other hubs via Incheon with is now three times the size of and Taiwan as contributor to the seven dedicated DHL aircraft and 40 its predecesso an can also handle increasing cargo demand seen at aircraft from partner airlines. 3.5 times as much capacity, complete with a conveyor belt and automated X-ray inspection machines to ensure safety and compliance. It pledged €131 million (KRW 175 billion) to expand the cargo gateway in 2019, marking its largest investment in South Korea to date. This also marks the first instance of solar power usage DHL Express is confident about the upward trajectory of cargo demand in South Korea and has commenced full-fledged operations at the newly expanded Incheon gateway.

JD Airlines connects Shenzhen to Vietnam JD Airlines, the air cargo division of JD Logistics, has opened its first international all-cargo route between China’s Shenzhen Bao’an International Airport and Ho Chi Minh City in Vietnam. A B737-800BCF cargo aircraft successfully carried out the first roundtrip flight on 19 September, marking a pivotal moment for JD Airlines since it started operating in October 2022. The Chinese carrier is working with airline service company CSAA to operate the route three times a week, on Wednesdays, Fridays, and Saturdays. The carrier said the route is

optimized to primarily transport crossborder e-commerce parcels from China to Vietnam, whilst facilitating the shipment of key agricultural exports like fruit and seafood on the return trip. In a post, Vietjet Air Cargo congratulated JD Airlines for opening the new route: “We are so excited to be JD ‘s first interline partner in Vietnam, collaborating to bring e-commerce goods via the VietJet Air Cargo network. This cooperation strengthens connections and enhances opportunities in e-commerce and import-export activities between the two countries and globally.”

FedEx launches ‘Picture Proof of Delivery’ for Singapore residents FedEx is supporting e-commerce growth in Singapore and enhancing the customer experience of online shoppers in the city state with the launch of Picture Proof of Delivery (PPOD) for express residential deliveries. Customers in Singapore who choose the ‘no-signature-required’ delivery option can now receive a photo showing the exact location where their package was delivered, by tracking on the FedEx website and

the FedEx Mobile app. The express operator said this is a free delivery service option and will not require enrolment, an account, or login. The move comes amidst an increase in the number of deliveries spurred by e-commerce growth in Singapore, which is expected to jump 11 percent annually to reach US$16.4 billion in 2023. In November last year, it launched a similar service option for Hong Kong and New Zealand.

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NEWS - FREIGHT FORWARDERS Operators double capacity on China-UK e-commerce route The move comes following a new cargo development agreement signed in August, between the Sichuan Province Airport Group Company and the Regional and City Airports, which owns Bournemouth Airport. Starting 18 September, the weekly services between CTU Bournemouth Airport is anticipating and BOH will be increased to six. more e-commerce shipments from Bournemouth-based European China as its air freight business Cargo will fly the route using its fleet Cargo First announced the doubling of A-340 wide-bodied freighters, each of services operated by European with a capacity of 76 tonnes. Cargo between Chengdu Shuangliu International Airport (CTU) in China Cargo First said the new cargo and Bournemouth Airport (BOH). development deal aims to build the

route as a ‘dual hub’ cooperation platform between Chengdu and Europe, providing a stable channel for the import and export of e-commerce goods. The company noted it has seen a growing proportion of consignments from Chengdu clearing customs locally in Bournemouth and by passing Heathrow warehouses altogether for onward travel in the United Kingdom. The company is looking forward to 1 million square feet of warehousing development on the Cargo First Logistics Park at Bournemouth Airport.

AP Moller-Maersk tests sea-air cargo solution via Oman A.P. Moller-Maersk has collaborated with the Port of Salalah and Oman Airports to trial a sea-air logistics solution for cargo moving from Sri Lanka to Egypt. The first shipment, which comprised cargo for the retail and lifestyle sector, was carried out on a Maersk vessel from Colombo to

the Port of Salalah, where the cargo Maersk said the sea-air solution was discharged and then transported can help reduce transit times on to Salalah Airport under a customs- traditional east-to-west trade routes bonded corridor. Upon arrival at by up to 40 percent compared to the air cargo terminal, the shipment pure ocean transportation and can underwent security clearance and generate cost savings of up 20 percent was transported by air ‘on priority’ to compared to shipping purely by air. Cairo. The company plans to offer multiple service products in Oman, including a hub or gateway solution to connect new and emerging markets and support different commodities, from general cargo to speciality products like pharmaceuticals and perishable products. The proposed gateway can also seize the opportunity to support aid and relief cargo for countries that are accessible only by air transport, the company noted.

Scan Global Logistics absorbs Swiss player Belglobe Scan Global Logistics has finalised its third acquisition this year after it acquired Swiss logistics specialist Belglobe. With Belglobe, SGL will gain the foundation and capabilities to grow within the Swiss market and further develop key industries. Its growing global portfolio now counts 48 countries. The company, founded in 1994 by Stefan Zangger and located in Avenches, provides special logistics solutions for temperature-controlled

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pharma shipments (BelCool) and high-value luxury goods (BelSafe), with a strong air freight presence in the Latin American market. SGL said establishing itself in Switzerland is the logical choice due to its proximity to key European markets like Germany, France, Italy, and Austria. It also serves as the home base for many multinational companies that have set up central procurement for their supply chains.


NEWS - FREIGHT FORWARDERS Airblox welcomes Avianca Cargo capacity Freight forwarders on the Airblox platform can now search and book capacity on Avianca Cargo flights. Procurement specialists can find listed capacity on lanes between Miami and Bogota, as well as transAtlantic lanes between London Heathrow-Bogota and MadridBogota. Airblox allows instant access to multiple airlines’ capacities, the ability to book days or months in advance, as well as financial solutions with payment extension options. Signing up on the platform is free and available for businesses of all sizes

Atlas Air welcomes 2nd freighter for MSC Air Cargo Atlas Air took delivery of a Boeing 777- “Building on the successful launch strategic partnership. We expect 200 Freighter on 20 July, which it will of MSC’s Air Cargo Solution, we are our remaining two 777 aircraft to be operate on behalf of customer MSC very pleased to welcome this second delivered in the fourth quarter,” said Mediterranean Shipping Company 777 delivery as part of our long-term Michael Steen, Atlas Air chief. SA, as part of a previously announced long-term ACMI (aircraft, crew, maintenance, insurance) agreement. This is the second of four B777-200 freighters that Atlas Air will operate for MSC, which will complement its existing weekly service. The company offers around-the-world service to airports in Mexico City (NLU), Indianapolis (IND), Liege (LGG), Seoul (ICN) and Xiamen (XMN).

GEODIS secures expanded road network to China GEODIS is expanding its road/ trucking network in Southeast Asia and has launched a new route from Singapore to Shenzhen on 23 August, connecting the city state, Malaysia, Thailand and Vietnam, all the way to China. The logistics operator has made significant investments on security, including equipment and processes involving IoT, for transporting highvalue shipments securely throughout the road network, particularly for the high tech, semiconductor, automotive, engineering, retail, and FMCG sectors.

The road network integrates with major air and seaports as a possible multimodal option and can be monitored round the clock by a command center. Plans are underway to subsequently extend this to Hong Kong and Indonesia later on via an intermodal road-sea service. GEODIS said investments have also been made to increase service frequency and enhance its capabilities with dedicated customs brokerage and trade compliance teams at major border crossings to facilitate the seamless movement of goods.

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NEWS - PEOPLE Guillaume Halleux takes top commercial post at Swissport Air cargo executive Guillaume Halleux has joined Swissport International AG as chief commercial officer and member of the executive leadership team, effective 18 September. With over 25 years of experience, the new commercial chief joined Swissport from Qatar Airways Cargo, where he previously served as cargo chief and cargo vice president for Asia Pacific. Swissport said Guillaume will be in charge of executing the group’s commercial agenda in developing existing and building new client relationships and driving the

acquisition of new business. He will work closely with regional business leaders and maintain an open customer dialogue to build long-term partnerships based on trust and operational excellence. A French citizen, Guillaume started his career with Air France in 1997, where he held several positions in logistics and business development before joining the SkyTeam Cargo US joint venture between Air France, Delta Airlines, and Korean Air. He also held the regional director post for Hong Kong and South China at Air France-KLM.

DHL promotes new head of global air freight DHL Global Forwarding, the air and ocean freight specialist of DHL Group, has announced changes in its global leadership team with Thomas Mack, current executive vice president for air freight, set to move into a new senior advisor role. Max Sauberschwarz, who currently holds the role of senior vice president for StarBroker, DHL Global Forwarding’s air charter organisation, will assume the role of head of global air freight on 1 October 2023. .

Mack and Sauberschwarz will report directly to Tim Scharwath, DHL forwarding chief, during the transition, after which Mack will leave the company into retirement in October 2024. Thomas Mack joined the company five years ago as head of global air freightwherehewasheavilyinvolved in transforming the organization into one of the world’s leading providers of integrated air freight services, together with its express counterpart.

Dronamics elects general manager for Australia Cargo drone developer Dronamics is making preparations to strengthen its presence in the Asia Pacific as it appointed Gavin Gomes, a certified pilot, as general manager for Australia and member of the senior management team, effective 1 August.

in Australia since 2020. In 2022, it received approval to conduct experimental test flights with a subscale prototype of its flagship aircraft, the remotely piloted Black Swan. That same year, It signed a manufacturing agreement with Quickstep Holdings Limited, an independent aerospace composite business in Australia, to Gavin’s track record spans several help scale up production and meet the sectors including startups, private growing demand for its cargo mobility companies, listed entities, and global services. multinationals like Canon, Australia Post, Telstra, and IBM. He also serves The company is confident about as a non-executive director of Royal its long-range, high-payload cargo Victorian Aero Club and CM Pacific Pty drone operations, which can be Ltd. a game-changer for industries including perishables, mail, pharma, Dronamics has had a presence e-commerce and mining.

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FOR ADVERTORIALS AND AD PLACEMENTS FOR ADVERTORIALS AND AD PLACEMENTS

Chua Chew Huat Chua Chew7382 Huat (+65) 9863 (+65) 9863 7382 sales-sg@harvest-info.com sales-sg@harvest-info.com

Simon Lee Simon Lee 2779 (+852) 9437 (+852) 9437 2779 sales@harvest-info.com sales@harvest-info.com

Matt Weidner Matt Weidner (+1) 610 486 6525 (+1) 610 486 6525 mtw@weidcom.com mtw@weidcom.com


COMPANY PROFILE

Keep it short, simple: AI solutions for the modern logistics workplace Sometimes all you need is a simple short answer to a question and make sure the answer is right. Is this too much to ask? Efficiency in knowledge management is essential for firms to remain competitive in the fast-paced commercial environment of today. However, collecting, storing, retrieving, and effectively presenting crucial information is a difficult issue for many businesses. As a result, opportunities are lost, productivity suffers, and time is squandered. Despite the emergence of new AI models like ChatGPT, one of the main issues is that they do not provide the user with the relevant references as to where the answers were found. Logistics organisations in the modern workplace struggle with several obstacles to efficient knowledge management. These difficulties frequently impede decision-making, teamwork, and productivity. But what if there was a solution to all these?

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Too much information Organisations are currently overwhelmed with information as a result of the exponential increase of digital material. It is challenging and time-consuming to locate the appropriate information when needed since valuable papers, reports, and resources are dispersed across several platforms.

source(s) of the relevant answer so that the user can know from where the answer came from. This creates ambiguity as the user is not able to know whether the answer generated by the relevant AI chatbot is the right one or whether it is ‘hallucinating’. Hallucination in an AI model is when the model is making up and creating answers ‘out of thin air’. For example, one may ask an AI chatbot to name Ineffective document storage five countries in the world starting A lot of businesses continue to use with ‘O’ and instead of saying that antiquated and disjointed document only one answer exists (Oman), storage solutions, as such shared drives or local servers. Version control and adequate structure are lacking in these systems, which A lot of businesses continue causes confusion and wasted effort. to use antiquated and Searching for paper or, worse still, disjointed document storage developing them from scratch most solutions, such as shared of the time. drives or local servers.

Version control and adequate

Inefficient and inadequate structure are lacking in traceability Meanwhile, emerging AI chatbots, these systems, which causes such as ChatGPT, do not show the confusion and wasted effort.

AUGUST - SEPTEMBER 2023 | www.payloadasia.com


COMPANY PROFILE it may provide other made-up countries or name cities as countries. Hallucinating means the answer is not right. Introducing ShareBot Singapore-based company ShareLook has been extensively working in the last 2 years on a set of services aimed at resolving the AI knowledge management issues that businesses encounter, a solution called ‘ShareBot’. Within a powerful Knowledge Center, it provides a smooth and effective approach to storing, retrieving, and distributing knowledge. In logistics, the use can be bring about several benefits: Streamlined supply chain insights The logistics industry heavily relies on accurate and up-to-date information for efficient supply chain management. ShareBot’s Intelligent AI Knowledge Management offers a centralized repository for key documents, reports, and resources related to supply chain processes. These include data on inventory management, transportation logistics, and vendor relationships. With advanced organising tools and classification, logistics professionals can swiftly access critical insights to make informed decisions, leading to smoother operations and minimized delays. Real-time troubleshooting and decisions Logistics operations often encounter unexpected challenges that require quick problem-solving. An Advanced Search Functionality enables logistics teams to swiftly locate solutions to common issues or challenges that have been previously addressed. By efficiently retrieving relevant information from the Knowledge Center, logistics professionals can troubleshoot problems in real time, reducing downtime and ensuring the continuous flow of goods and services. Enhanced compliance and documentation The logistics industry is subject to various regulatory requirements and documentation standards. ShareBot’s solution addresses the

pain point of ineffective document storage by offering a structured and organised approach to storing compliance-related documents, industry guidelines, and legal documents. This ensures that logistics organisations can easily retrieve necessary documents during audits, maintain adherence to industry standards, and minimize the risk of compliance breaches. Efficient onboarding and training The logistics sector often experiences workforce turnover and the need for rapid onboarding and training. ShareBot’s solution can extend its capabilities to include a repository of training materials, best practices,

and operational guidelines. New employees can quickly access relevant resources, reducing the time required to get up to speed and ensuring consistent knowledge transfer across the organisation. By addressing these specific needs, this solution can play a vital role in improving the efficiency, decisionmaking processes, and overall performance of organisations within the logistics industry. Using AI to get the right information and save time is the way to go, however, we need to understand that the right model and solution must include the right resource for the answer and need to be scalable.

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C-SUITE

Agnes Lau gives a rundown on Schenker Singapore’s operations Agnes Lau is a seasoned professional with a remarkable 34-year career at DB Schenker, where she has an extensive track record of generating business revenue and devising commercial strategies. In 2018, she was promoted to lead the business development department as chief commercial officer, and this year, she assumed even greater responsibility as the CCO for the Singapore and Malaysia Cluster. Payload Asia talks to Agnes in this C-suite section to find out more about Schenker Singapore’s operations. Can you give a brief background about Schenker Singapore? Schenker Singapore is a leading global logistics service provider with 53 years of presence in Singapore. Our integrated solutions in air, ocean, land transport, and contract logistics support almost every industry, enabling connectivity to global and emerging markets. On top of our global network, we deliver innovative and sustainable solutions, ensuring our customers’ supply chain remains

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resilient and competitive. Which sectors are driving the demand for freight (by sea and air) in and out of SG? Which main routes does the team serve? The key sector driving demand is definitely the manufacturing sector. Singapore is known as a global hub for manufacturing high-tech goods. Many of the export and import shipments are related to electronics, pharmaceuticals, and precision engineering. The business-friendly ecosystem coupled with access to high-skilled talent has attracted many MNCs to set up their R&D hubs, headquarters, and regional distribution centers in Singapore. This has contributed greatly to hightech manufacturing output, and likewise the demand for freight. Similarly, Singapore is an attractive logistics and distribution center for moving goods in Asia and also to different parts of the world, attributed to the top-class transportation infrastructure and

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key connectivity to markets. Though some consumer spending may have shifted to services, we still see a very strong demand for consumer goods, boosted by e-commerce growth. Not forgetting, several sectors have consistent demand such as perishables and oil/petrochemicals which remain evergreen. We serve almost every route to key markets and ports around the world. Just to list the top few trade lanes would be our intra-Asia trade, Asia-Europe trade routes, and transPacific trade routes for ocean freight. For air routes, we have connections to all major global cargo airports, and the top lanes we serve include China, USA, Germany, India, and South Korea. How are macroeconomic fundamentals affecting the current demand? The current macroeconomic development thus far has shown us mixed signals with the global economic outlook forecasting


C-SUITE slower growth in both 2023 and 2024. Singapore as well has recently announced the narrowing of the GDP growth to 0.5 to 1.5 percent from 0.5 to 2.5 percent. There is generally a lower demand globally. But this slower growth is not equal everywhere with emerging markets facing higher growth since China reopening. Even developed economies such as Japan’s GDP have surpassed expectations and sustained better-than-expected growth despite increasing prices and outlook. In Singapore, the PMI has inched slightly upward in recent months but is still below 50, which indicates a contraction. The slight improvement in PMI signifies stabilization and an optimistic outlook by manufacturers, not forgetting, that the growing demand from generative artificial intelligence remains on the horizon. Similarly, the rising inflation and higher prices are not enough of a catalyst yet to slow down consumer spending in Singapore and other parts of the world. Overall, considering all economic factors, the demand has been relatively stable or in other words, flat growth. There might be a conservative increase in volume as we approach the peak shipping season, but it is unlikely we will see anything that of 2020/2021 levels. PMI for emerging markets continues its improved trajectory which leads to higher export volume from them and demand from e-Commerce remains a strong contributor to the large volume of freight demand. How important is Singapore as a trans-shipment hub in the region? Where is Schenker Singapore focusing its resources? As mentioned earlier, Singapore’s strategic location is a vital gateway to the rest of the world and our worldclass transport infrastructure easily termed us as the top trans-shipment hub of the world. Located in Southeast Asia, along major shipping routes, we facilitate the movement of goods in the region and beyond. This is supported by state-of-the-art seaport and airport facilities whilst known for its high service level and operational efficiency. The way forward is to go beyond simply providing transport and storage services. We are focusing on expanding our value-added, tailored services. This is not something new as we are already doing it with many

businesses alike. This period is also an opportune moment to explore and implement new ideas to improve overall business strategy and operational efficiency, be it through data analytics, digitalization, automation, and most importantly, developing our human capital. Even in the current business environment, there are many opportunities around us waiting to be capitalized upon. We want to be well-prepared to seize the chance and with the right timing, we are sure to ride on the wave of Do you expect an uptick in demand eventual growth. come holiday season? And what’s Where does sustainability fit in the the company’s outlook? Unfortunately, the demand has not company’s overall agenda? been impressive as we approach the It doesn’t just fit in, it is the agenda traditional peak shipping season. itself. DB Schenker globally aims to Typically, the period running up to be carbon neutral by 2040. To that China’s golden week holiday will end, we have invested greatly and result in a surge of demand for freight partnered with carriers and airlines as shippers stock up their inventories to purchase biofuel and sustainable for the holiday season. However, we aviation fuel instead of the fossil-fuel do foresee conservative growth in variant which will significantly reduce CO2 emissions by 80%. Customers the coming months. can opt to use greener solutions Drawing from our recent interim when moving a shipment with us. report on our half-year results in 2023, DB Schenker has shown While in Europe, DB Schenker robust growth momentum, despite plans to transition to an all-electric the global uncertainty and economic delivery fleet by 2030, we are equally challenges. This is contributed by the committed to Singapore’s national thriving and growing performance goal of having all commercial vehicles in Asia Pacific. Our outlook for running on cleaner energy by 2040. Singapore remains positive as we are We currently operate a fleet of EV committed to driving digitalization vans for last-mile deliveries, and initiatives and providing top-class this year, we are going to introduce logistics services, as exemplified by a total of 3 EV trucks. The initial our latest flagship project - RedLion2. launch of our electric truck in April We are also expanding our eco-fleet represents the first fully electric in Singapore with new EV trucks heavy goods vehicle for logistics in to support our customers with Singapore. Furthermore, our logistics sustainable logistics solutions, atop hubs are also harnessing renewable biofuel options for shipping via air energy to be greener than ever. Both RedLion1 and SLC 3 are accredited and sea. with Green Mark Platinum for their What will be the recommended green features, while RedLion1 holds approach for forwarders and the distinction of being Singapore’s shippers in the current business first LEED Gold-certified warehouse. Furthermore, as we approach the environment? With a great deal of economic first half of 2025, the completion of uncertainty ahead of us and the RedLion2 will mark a new milestone as seemingly tense geopolitical it is designed to be a carbon-negative, situations, we must be ready to zero-energy building, setting a new respond to any new developments. standard for green achievements. What the past few years have shown us is that there were many In all aspects of our business – land, situations that affected our business air, ocean, and contract logistics, are making sustainability adversely but each time we adapted we and emerged stronger. I would say more accessible, transparent, and the approach forward would be to accountable. This is not a task that further hone our capabilities but in can be undertaken by one alone, it is a sustainable manner, expanding a joint effort across the industry and while being cost-effective is going beyond to ensure a better future for to be a common factor among our planet and generations to come. of our customers and will continue to enhance their supply chain capabilities through digitalization and industry-specific solutions. We are investing heavily in automation as seen with the recent groundbreaking for RedLion2, and in addition to RedLion1, these logistics hubs will utilize cutting-edge solutions to speed up operational lead times to better serve our customers. We are growing our capabilities stronger than ever to be future-ready.

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SPOTLIGHT

A look at the US air freight industry with AfA executive director Brandon Fried The Airfreight Forwarders Association acts as the voice of air freight in the US transport and logistics sector, where it works closely with other industry associations to ensure a sustainable future for the sector. The group has actively lobbied about making critical investment in air cargo infrastructure at the country’s airports and helping shippers prepare for imminent changes to cargo screening requirements. In an interview, Brandon Fried, AfA executive director, outlines the group’s top priorities as well as the challenges for the industry in the coming years. PLA: What are your top priorities for the AfA in the coming year? BF: Our top priorities for the AfA in the coming year are to continue to advocate for funding on Capitol Hill for airports to address the growing cargo area truck congestion issue. This is a critical issue for our members and their customers. Truck congestion can cause delays and increased costs,

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hurting businesses and consumers.

New technologies like blockchain and artificial intelligence are disrupting the air freight industry. Forwarders need to be able to adopt these technologies to remain competitive.

Next is to educate our members about the upcoming TSA air cargo security changes coming November 1. These changes are designed to improve security and streamline the cargo screening process. We want to make sure that our members are prepared for these changes so that they can continue to operate industry events, networking with efficiently. foreign forwarder associations, and advocating for policies that support Another top priority is working with the free flow of goods across borders. members to create awareness of lithium batteries and other dangerous PLA: What are some of the biggest goods to ensure flight safety. Equally challenges that the US air freight important is increasing awareness forwarding industry will face in the about the upcoming US Customs & coming years? Border Protection export manifest BF: Some of the biggest challenges requirements. that the industry will face in the coming years include e-commerce Finally, we need to increase our growth, technology disruption, international engagement. We the lithium battery challenge, and believe being involved in the global geopolitical uncertainty. air freight community is essential. We plan to do this by attending The growth of e-commerce is putting

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SPOTLIGHT a strain on the global air freight supply chain. Forwarders need to be able to handle the increasing volume of shipments and meet the demands of e-commerce customers. New technologies like blockchain and artificial intelligence are also disrupting the air freight industry. Forwarders need to be able to adopt these technologies to remain competitive. All shipments containing lithium batteries need to be declared on shipping documentation. Failing to do so creates a potentially hazardous situation, and governments must increase enforcement of manufacturing standards. The global political landscape is increasingly uncertain. This can lead to trade disruptions and other challenges for forwarders. PLA: How is the AfA preparing its members for these challenges? BF: The AfA is preparing its members for these challenges by providing them with information, resources, and training. We offer a variety of educational programs and webinars on topics such as e-commerce, technology, and geopolitics. We also provide members with access to our

network of experts representing PLA: What advice would you give to many market niches who can help young people who are interested in a career in the air freight them address specific challenges. forwarding industry? PLA: What are your predictions BF: My advice to young people for the US air freight forwarding interested in a career in the air freight forwarding industry is to get involved industry in the next? BF: The US air freight forwarding as early as possible. You can do this industry will continue to grow by volunteering for an air freight or in the next 5-10 years, driven by transportation association, interning e-commerce growth and global with a forwarder, or taking logistics trade. However, the industry will and supply chain management face several challenges, including courses. technological disruption and geopolitical uncertainty. Forwarders The airfreight forwarding industry is who can adapt to these changes and a challenging but rewarding career adopt new technologies will be well- path. It is a global industry that offers positioned to succeed in the future. the opportunity to work with people The AfA is committed to helping its from all over the world. It is also a dynamic industry that is constantly members to do just that. changing. If you are looking for a PLA: How is the AfA working challenging and rewarding career, I to address the sustainability encourage you to consider a career in challenges facing the airfreight airfreight forwarding. forwarding industry? BF: The AfA is working to address the sustainability challenges facing My advice to young people the airfreight forwarding industry interested in a career in by promoting sustainable practices the air freight forwarding among its members. We offer industry is to get involved educational programs and webinars as early as possible by on topics such as carbon footprint reduction and fuel efficiency. We also volunteering for an encourage members to participate in association, interning with a sustainable certification programs. forwarder, or taking courses.

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INSIGHTS

A conversation with SAAA@Singapore’s Steven Lee It’s always good to hear old wisdom from those who have been part of Singapore’s growing air freight industry, but these days SAAA@ Singapore’s Steven Lee has his eyes on the road ahead. In this interview, the chairman of the air freight forwarder group shares his industry outlook and the trade body’s top priorities in the near term. What has been the common sentiment of member forwarders when it comes to softened volumes and rates this year? Does the group predict an uptick come year-end? As of 11 August 2023, the Ministry of Trade and Industry (MTI) announced Singapore 2023 GDP growth forecast for Singapore has been narrowed to 0.5 to 1.5 percent from 0.5 to 2.5 percent. Based on Singapore’s National Statistics, our manufacturing has dipped to 12.1 percent, and semiconductor is on a downtrend. With manufacturing and semiconductor industry heading south, it has a big impact on Singapore export volumes, thereby explaining a slightly pessimistic outlook over the normal peak period for last quarter of year. A bright spot, however, is that event logistics is a bright spot, with more international events and concerts being held in Singapore.

Safety, digitalisation and sustainability have been the key priorities for the industry this year. Do you see a gap between larger and smaller forwarders in addressing these priorities? Where should small and mid-sized air freight forwarders focus their resources? Though larger forwarders have been focusing on these key priorities, we are seeing more interest in smaller forwarders catching up on them too for business competitiveness and continuity. Drivers include carriers’ push for sustainability, especially their efforts on carbon offset programmes. Resources allocation and cost investments are key challenges towards this first step, which SAAA is committed to supporting our members to embark on this journey. What’s your take on the movement of supply chains across Asia Pacific, and how does this affect your business decisions? How important is Singapore as a trans-shipment hub in the region? Cost and efficiency remain the key fundamentals. Competition drives progress. Within Asia, we are surrounded by neighbours who are stepping up their momentum, which also constantly remind us to always seek continuous excellence as a strategic air cargo and trans-shipment hub position.

Three main priorities of SAAA@ Singapore this year

What is the group doing in terms of attracting the right talent to the industry? What are the training and skills needed to become successful in the air freight forwarding industry? We collaborate as an event exhibitor in Civil Aviation Authority of Singapore’s One Aviation event in August as a form of industry outreach to spread positivity working in our air cargo sector. To become successful, it requires the right ‘SKA’, which include skills (competency level to perform your domain job specialization), knowledge (relevant information with right training) and attitude (diligence and positive vibes and passion for the industry).

On top of this, SAAA Council members also extended professional expertise to nurture young talents with industry skills among collaborations with higher tertiary education like all local polytechnics undergraduates cargo trends and safety. The group conducts its Dangerous and Institute of Technical Education Goods Competency Based Training undergraduates on their Nitec course Assessment (CBTA) training at the pursuit. new Kallang training centre and will be undergoing audits for its recertification of the IATA Dangerous Goods CBTA Excellence Centre Status this October.

Workforce The group was appointed programme partner by WSG to lead various workforce programmes for the air transport sector, including a) sectorial job redesign initiative for business and workforce transformation, b) capabilities development programme and c) place-and-train programme for air transport coordinators. Industry partnership and nurturing young talent Safety SAAA@Singapore is the Strategic SAAA and IATA are co-organizing their Supporting Organization for MMI 4th event at this year’s Air Cargo Day Asia’s first Southeast Asian edition of on 31 October 2023 at Singapore Transport Logistics and Air Cargo, to Expo, with the theme “PASS” or “Propel be held from 1 to 3 Nov 2023, helming Aviation Standards and Safety”, which the Singapore Pavilion, supported by will focus on key topics such as air Enterprise Singapore.

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INSIGHTS

CEVA Logistics strengthens its presence in India’s fast-evolving logistics sector, and why not? Words by Paras Rawal, Managing Director for India In today’s world, logistics is considered the backbone of an economy, and this holds true for India’s logistics industry, which is among the fastest evolving. CEVA Logistics projects that India will continue its economic performance and positive outlook, creating a significant opportunity within India’s logistics sector. Rising domestic consumption and manufacturing trends should boost the demand for logistics and alter several aspects of the supply chain, including freight forwarding, warehousing, and last-mile delivery. Never before has the logistics industry’s contribution to the nation’s economic growth been more persuasive. Although the logistics industry in India is fragmented, companies across the globe are looking at India and the broader APAC region as a unified production base and a market with substantial potential due to increased planned outlay, improved infrastructure facilities, and greater access to global markets. Such prospects are presenting an opportunity for logistics industry players to expand their business and capitalise on the rising domestic and global developments, including trends like e-commerce.

long-lasting relationships with our customers across markets and geographies. With the acquisition of Stellar Value Chain Solutions, we will continue to help our domestic customers grow even faster. The deal is a value driver for enabling growth and increasing business efficiency. With the acquisition, we will strengthen our scale and capabilities to boost our presence in the India logistics market and provide integrated end-to-end supply chain logistics solutions to our current and future customers. As a result of the deal, CEVA will acquire approximately 7,700,000 square feet of space across more than 70 facilities in 21 cities across India, in addition to our existing presence of 75 locations across 35 cities. Also, we will inherit nearly 8,000 full-time and temporary employees, which will enable us to build scale and diversify our domestic presence. Along with this improved infrastructure, we are putting an increased emphasis on the adoption of new technologies to drive greater efficiency and sustainability.

In addition to India, the acquisition complements recent growth in our contract logistics business with an opportunity to explore other prospects in the Asia Pacific region. We also expect the deal to boost our freight management and customs CEVA Logistics, part of the CMA CGM business in the region. With new Group, is growing both organically and through M&A. Our India business has grown at a steady pace. Today, we are an established player and rank among the top in air and ocean. In the past two and half years, we have also invested in growing our ground and rail and contract logistics businesses. Our ability to predict trends, create solutions, and quickly adapt to changing market situations is strengthened by our worldwide network. Our understanding of the domestic market coupled with our global insight has given us a competitive advantage and consequently enabled us to maintain

manufacturing trends and supply chain routes developing, we are confident that our global network and wide range of logistics solutions provides companies in APAC with the agility needed to navigate changing market conditions. We are a people-centric organisation, and work as one team to provide and deliver the best customer service to our customers. We call that promise responsive logistics, and it takes each and every one of our 110,000 global employees to ensure that level of dedication to the customer. We look forward to welcoming the Stellar team so that our combined team of experts can work together to assure seamless execution for our customers. We’re confident in our integration plan to ensure the transition is a success and that new employees feel welcomed into the culture. Ultimately, we believe that our new level of scale will allow us to carry out our mission of connecting people, products and providers all around the world. With our strong teams and expertise, we will continue to develop the solutions that unlock value for our customers in their respective markets. With continued growth and our customer-centric focus in India and around the world, CEVA is well-positioned to meet our goal of becoming a top 5 global logistics player.

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INSIGHTS

Setting up freight forwarders for humanitarian relief mission success Words by Chapman Freeborn Airchartering

In times of crisis, freight forwarders play a pivotal role in rescue and aid efforts in the wake of natural or manmade disasters, such as earthquakes, tsunamis, wildfires or political unrest and conflict. Charter flights often offer the fastest way of delivering help to affected people and regions, whether it’s in the form of humanitarian aid delivery, food drops, firefighting equipment, medical evacuations or repatriations. Lives depend on swift and efficient logistical planning and execution, and each party has a crucial part to play in the process. A seamless interaction between all involved provides the greatest chance of success in the rescue or relief mission.

Relief operations are typically initiated in response to unexpected crises, with minimal time for preparation or planning. In these scenarios time is of the essence, and understanding the urgency will ensure that medical supplies, food, personnel, and any other aid required can reach the affected regions as quickly as possible. By working with a charter broker that is experienced in humanitarian missions, freight forwarders can rest assured that everything will move as swiftly as possible.

Building relationships Establishing strong relationships with reputable companies is vital for freight forwarders, and never more so than when an emergency Taking heed of some key situation arises. When you quickly considerations will place freight need insights into aircraft suitability, forwarders in good stead to succeed. cargo availability, pricing and other Understanding the urgency

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operational considerations, it is invaluable to be able to turn to an organisation you trust, and who you know will respond to you rapidly and personally. Choose an air charter broker that can be contacted 24 hours a day, 365 days a year to guarantee a swift and helpful response, whenever you need it. Identifying suitable aircraft Selecting the right aircraft for the job is a critical step in securing air charter flights for relief and humanitarian operations. Forwarders must consider not only the type and quantity of cargo, but also the destination’s infrastructure and accessibility. Large cargo aircraft such as the Antonov AN-124 freighter may be preferred for its immense size and capacity, however if the goods are travelling somewhere with difficult


INSIGHTS terrain, the versatile Pilatus PC-12 may be required to ensure landing is possible. A reputable air charter broker will take this nuanced decision out of your hands, using its expertise to choose the perfect aircraft for your cargo, distance and destination. Regulatory compliance and documentation Navigating the complex world of international regulations is a crucial aspect of securing air charter flights. Freight forwarders must ensure that all necessary permits, licenses and customs clearances are obtained promptly, and in the case of humanitarian missions, this may require expediting such processes. This comes hand-inhand with ensuring that all relevant documentation—including cargo manifests, flight plans and customs declarations—are secured as quickly as possible. The right air charter broker will work closely with aviation authorities on your behalf, adhering to strict regulatory standards and removing the time, stress and bureaucracy associated with regulations and documentation. Contingency planning During relief operations, freight forwarders must be prepared for unforeseen challenges such as weather disruptions, political instability and logistical bottlenecks. However, an expert flight support team will oversee flight planning, route optimisation, weather monitoring and other risk assessments, ensuring that you are prepared for all eventualities and that alternative plans can be quickly executed if required. Cargo handling The safe and secure transportation of relief supplies is paramount to the success of any humanitarian mission. Freight forwarders must be confident that the cargo is properly inspected, loaded and secured onto the aircraft, and that safety protocols for dangerous goods or fragile items have been adhered to. It’s imperative to choose an air charter broker that has excellent relationships with ground handling teams across the world, and extensive experience in

transporting hazardous and sensitive facing immense pressure to deliver items under the correct conditions aid swiftly and efficiently to those in and with the correct permits. need. Working in collaboration with an air charter broker like Chapman Communication and coordination Freeborn provides unparalleled Seamless communication and support throughout every step of the coordination are the backbone of process. a successful humanitarian relief operation. Freight forwarders must Chapman Freeborn has been at the maintain constant contact with all forefront of the air charter industry stakeholders in the mission, including for over 50 years, operating globally the organisation or people in need, out of 30 offices across six continents. the aircraft operator, airports, ground Its humanitarian team coordinates crew and regulatory authorities. ad hoc and large-scale humanitarian Deducing and disseminating real- relief flight operations for the United time updates from all parties is Nations, governments, international essential for adapting to an ever- NGOs and other aid providers, priding evolving situation, and an air charter itself on its ability to react rapidly to broker will assist in guaranteeing emergency situations the world over. that everyone remains informed from start to finish. With over 29,000 flights arranged every year and a total of nine million Securing air charter flights for air miles flown in half a century, humanitarian operations is a Chapman Freeborn is ideally placed demanding and high-stakes to collaborate with freight forwarders endeavour. Freight forwarders are at across the globe to execute successful the forefront of this critical process, humanitarian aid missions.

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Strengthening the Core Expanding our Horizons Providing Reliable Services and Value-Added Expertise Globally The SATS Group, a global leader in ground handling, cargo, and passenger services, and Asia's pre-eminent provider of food solutions is witnessing a remarkable revival of the global air travel and cargo landscape in 2023. As the aviation industry rebounds, we continue to embrace opportunities, overcome challenges, and strategically expand our cargo handling capabilities in Singapore and across our global network. Find out more at sats.com.sg.


Enhancing Operational Excellence The Group leverages our global network benefit to build visibility of performance data across the world to provide our customers with a consolidated view of key metrics which are essential for them to manage their cargo business from end to end. Harnessing this capability, we develop value-added products and services for strategic customers across a broad segment of the industry from airlines to freight forwards and eCommerce players that will enable SATS to scale our business. With Singapore as a key pillar for our growth strategy, we will continue to strengthen our capabilities in our home market. In the coming years, we will continue to enhance operational excellence through productivity, streamlining operations, and cutting-edge technology such as real-time monitoring tools that meticulously track apron processes across our terminals. We are excited to see the implementation of a new digital ground operating system, G-Ops, that allows tracking of key under wing operational milestones of our apron processes in real time. The performance metrics captured by the system will enable us to drive continuous improvements across our ramp operations for higher services performance, productivity and volume management. To keep up with the ever-changing aviation environment, SATS is constantly looking at new, breakthrough concepts to improve our capability development. The recent introduction of a rollertrack conveyor system for narrow-body aircraft transforms the way we process baggage and cargo, enhancing efficiency and ensuring the safe handling of cargo.

Specialised Cargo Handling We are also proud to be the world's first ground handler to achieve the IATA Lithium Battery certification in Hong Kong, Indonesia and Singapore, highlighting our competency in the handling of lithium batteries in order to help our customers meet safety regulations for dangerous goods. One of our newest subsidiaries, Hong Kong’s Asia Airfreight Terminal (AAT) has increased our capability to serve more cargo volume and is operating AAT Coolport – the first on-airport cold chain facility in Hong Kong that allows for improved handling of perishables and other temperature sensitive products. In the fast-paced world of ground handling and cargo services, we prioritise efficiency, value-added services, and precision in order to provide our customers with an unparalleled level of coordination and service.

Extending our Global Presence In 2023, we embarked on a transformative journey with the acquisition of Worldwide Flight Services (WFS). This strategic maneuver has transformed us

into a global gateway service provider, serving over 210 locations across 27 countries. This expansive footprint, spanning Asia Pacific, Europe, the Middle East, Africa, and the Americas, strategically positions us for scalable growth. WFS, now a member of the SATS Group, continues to score a number of strategic partnerships that exemplify our commitment to excellence. This includes the commencement of a 15-year license to operate an international cargo and cold chain handling operation at Kempegowda International Airport in Bengaluru India. Since then, we have signed handling contracts with 20 global airlines to operate out of the terminal. Coupled with the Group’s ongoing construction of an integrated multi-modal cargo hub in Noida, India, the partnership marks a watershed moment for our operations in India, further enhancing our cargo handling capabilities in India and the region. We expanded our footprint in the United States with the expansion of cargo terminal capabilities at Chicago O’Hare International Airport and constructed a new cargo terminal at Adolfo Suárez Madrid-Barajas Airport in Madrid, reinforcing our commitment to seamless global connectivity.

Unlocking Regional Potential in Food Solutions On the food solutions side of the business, we provide quality food solutions sustainably through continuous innovation and robust supply chain management. Our unwavering commitment to delivering food solutions sustainably, backed by a relentless pursuit of innovation and a resilient supply chain management system, has carved out a niche for us in the market. What defines us, is not just the quality of our services but the genuine, heartfelt dedication to our customers and the infusion of technology into every facet of our operations.

Connecting with a Purpose The SATS Group’s purpose is to feed and connect communities, a mission that underpins every action we take. As we expand our reach across continents, we are unwavering in our commitment to developing our most valuable asset - our people. They are the heart and soul of our operations, driving innovation and excellence in the pursuit of our purpose. Through continuous learning and development, we ensure that our teams remain at the forefront of industry trends, equipped to provide nothing but the best to our customers. With our extensive global presence, advanced technology, and unwavering partnerships, we are poised to make a positive impact on people's lives globally. As we pursue further growth, invest in our team's development, and establish new benchmarks in the industries of gateway services and food solutions, the SATS Group stands resolute as a driving force for advancing progress in these fields.


EVENTS Europe’s largest airline group, the Lufthansa Group hosts Lufthansa Group, hosted more than guests on 24 August to discuss the Sustainability Day in Singapore 160 future of sustainable aviation at the Pan Pacific Orchard in Singapore. The event brought together representatives from the government, airlines, airport authorities, educators, and airplane manufacturers to discuss how the aviation industry is quickly responding to evolving market demands and offering customers sustainable choices. The event highlighted several innovations, including sustainable aviation fuel and carbon-neutral ‘green fares,’ which were availed by more than 200,000 passengers within the first 100 days, the carrier said. Whilst these fares are pricier, Lufthansa hopes to replicate the same reception in Asia Pacific in the near future for intercontinental routes. The airline also presented its aeroshark technology which allows reduced emissions in the air by replicating shark skin on aircraft.

Airline leaders sign first IATA Safety Leadership Charter in Vietnam

Over 550 professionals from airlines, aviation regulators, manufacturers, and other safety stakeholders were in attendance at the inaugural World Safety and Operations Conference in Hanoi, presented by IATA and host carrier Vietnam Airlines. This is the first time that IATA has held a safety conference in Vietnam, which examined all aspects of safety, including flight operations, cabin operations, and emergency response under the theme “Leadership in Action: Driving Safer and More Efficient Operations.” One of the main highlights during the event was the launch of the IATA Safety Leadership Charter, which saw 20 airlines showing their commitment to evoking a positive safety culture within their organizations through key guiding principles. Joining the first signatories were Air Canada, Air India, Air Serbia, ANA, British Airways, Carpatair, Cathay Pacific, Delta, Emirates, Ethiopian, EVA Airways, Garuda, Hainan, Japan Airlines, Pegasus, Philippine Airlines, Qantas, Qatar Airways, TAROM, United, Vietnam Airlines and Xiamen Airlines.

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