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Dear reader,
Chinese New Year is just around the corner and this special awards issue is certainly our way of welcoming the next 12 months with the same passion and vigour that has brought the air cargo and logistics industry and its remarkable role across supply chains in the limelight.
In this issue, we look back at the highlights of the 9th Payload Asia Awards which was held at the grand ballroom of Sheraton Towers Singapore with over a hundred participants. Turn to page 12 to find out who the winners are and get to know the familiar faces who are leading the business of air freight in Singapore and across the globe.
On the C-Suite section, we got a chance to talk to Teow Boon Ling, CEO of Cargo Community Network, as he shares the company’s plan to democratise digital transformation for the air freight and logistics community.
In an interview, Payload Asia caught up Prof. Rod Franklin, academic director of Kuehne Logistics University, to find out his insights on supply chain and logistics. Skip to page 24 to hear his views on taking up logistics as a course and making a career out of it.
This issue also covers the latest industry news on carriers, airports, cargo handlers and forwarders, including a brief coverage of the Hong Kong’s 12th Asian Logistics, Maritime and Aviation Conference in November. Enjoy reading the pages, and look out for the FebruaryMarch issue next month.
Top players reunite at the 9th Payload Asia Awards
INSIGHTS
KLU’s Rod Franklin on logistics, supply chains and making a career out of it
WebCargo reels in China’s largest cargo carrier
Malaysia to test air cargo community system at KUL
Lödige Industries delivers automated system for AAT
Hong Kong’s 12th ALMAC event, in hybrid format, ends on a high note
Top players reunite at the 9th Payload Asia Awards
KLU’s Rod Franklin on logistics, supply chains and making a career out of it
Hong Kong’s 12th ALMAC, in hybrid, ends on high note AirAsia’s Teleport set for growth with fresh funding
Kuehne+Nagel welcomes first B747-8F from Atlas Air
Singapore takes a crack at FedEx sorting robot
DHL obtains lithium battery certification in the UK
Gebrüder Weiss eyes Türkiye’s transport hub appeal
Democratising digital transformation in air logistics with Cargo Community Network
Simon Lee Sales Director, HK & International (+852) 9437 2779 sales@harvest-info.com
Chua Chew Huat Sales Director, Asia Pacific (+65) 9863 7382 sales-sg@harvest-info.com
Air Premia picks Globe Air Cargo Japan as GSSA
ECS Group said the Korean hybrid carrier plans to run a scheduled service connecting NRT with ICN, and from there on to Singapore (SIN), Saigon (SGN), and Los Angeles (LAX), respectively. The GSSA, who already represents Air Premia in Korea and the US, recently established its own presence in Japan with subsidiary Globe Air Cargo Japan.
Air Premia has started scheduled services linking Narita with Incheon as the Korean carrier chose ECS Group to represent the airline as its GSSA in Japan. The inaugural flight from Japan
to Korea flew on 23 December where the carrier transportED export cargo loads containing automotive parts, semiconductor parts, and general consumer goods.
WebCargo reels in China’s largest cargo carrier
China Southern Air Logistics has partnered with air freight booking platform WebCargo, becoming the first carrier in China to offer rates, capacity, and bookings on the digital marketplace. With the addition of China Southern’s cargo arm on the
booking platform, half of the world’s air cargo capacity is now available for pricing and booking on WebCargo, the company said.
Barcelona-based WebCargo, which started from zero just 4 years ago,
Globe Air Cargo Japan is located off-airport, in downtown Tokyo, in Shinbashi, Minato-ku, 70 kilometres from NRT. Minato district is a prime location for many of the global and local Japanese forwarders, the company noted. now has more than 30 airlines on its platform, including the likes of Lufthansa, American Airlines, Air France-KLM and Emirates SkyCargo. Around 3,500 freight forwarders use the platform across the globe to check rates and capacity and book online. Airlines pay a fee for each transaction.
China Southern operates a fleet of 14 Boeing 777 freighters and runs 60 flights a week from Chinese cities to Amsterdam, Chicago, London, Los Angeles and Frankfurt. The airline accounts for about 5 percent of all tonnage capacity worldwide, Payload Asia learned.
Lufthansa Cargo opens new station in Hanoi
Lufthansa Cargo opened its newest station in Hanoi in November, adding the Vietnam destination to its global B777F route network for the winter flight schedule. With the new service, the cargo airline is doubling its capacity to Vietnam with a regular cargo capacity of 250 tonnes each week.
The German airline now operates two weekly flights each to Ho Chi Minh City and to Hanoi with Boeing 777F aircraft operated by AeroLogic. It will be the lone carrier to connect Hanoi with
Lufthansa’s hub at Frankfurt airport, which is well linked by air and road feeder services within Europe and its wider global network.
Lufthansa said Vietnam has gained significant importance and records an increasing high export volume, including to Europe. “Accordingly, the demand for air freight transportation is high. In particular, electronics, automotive parts and clothing are among the most frequently flown goods from Hanoi,” the airline said.
Liege Airport gears up for SAF distribution
Liege Airport is now ready to receive, store and distribute sustainable aviation fuel (SAF) to airline partners, becoming the first airport in Belgium to announce such a feat. The cargo air hub confirmed that aviation fuel installations and fuel storage facilities have been audited over the last months and procedures have been reviewed to accommodate for the arrival of SAF.
The airport shared that several of its airline partners confirmed having talks with suppliers to arrange for
the procurement and use of SAF at the airport in the short and medium term. It expects the first SAF-enabled cargo flight to take off very soon, citing news about the European (NATO) pipeline system (CEPS) allowing for the transport of SAF from 1 January as a positive indicator.
“Any current or new fuel supplier now has the possibility to not only directly and physically discharge SAF via road tankers into our fuel installations, but also to inject larger quantities of SAF into one of the intake points of the European pipeline system,” the airport noted.
Hong Kong holds ceremony for third runway
The third runway at Hong Kong International Airport (HKIA) was officially commissioned on 30 November, marking a key milestone of the airport’s expansion into a three-runway system. The 3,800-m-long runway, which started operations in July 2022, is expected to help significantly increase the passenger and cargo handling capacity of HKIA.
The construction works of 3RS started in August 2016. The formation of 650 hectares of land (equivalent to 34 Victoria Parks) through reclamation was completed in around four years. The expansion of Terminal 2, construction of T2 Concourse, a new baggage handling system and automated people mover system are scheduled for completion in 2024 on time and within budget.
Malaysia to test air cargo community system at KUL
Efforts are coming in all forms to support Malaysia’s competitiveness in its transport and logistics sectors as plans to introduce a platform that will connect stakeholders of Kuala Lumpur International Airport are underway.
Air cargo software provider Kale Logistics Solutions and tech company Dagang NeXchange (DNeX), through its subsidiary Dagang Net, have signed a partnership agreement to introduce the Airport Cargo Community System (ACS) platform in Malaysia. The ACS is a neutral and open platform that enables intelligent
and secure information exchange between public and private stakeholders.
Vineet Malhotra, co-founder and director at Kale Logistics Solutions, said the latest development presents a powerful case that cargo community platforms need to integrate to bring
greater value. The plan is to create a global network of smart logistics hubs, starting in Malaysia. Kale and Dagang Net are part of a 16-member regional e-commerce alliance in Asia that aims to promote and provide secure, trusted, reliable and valueadding IT infrastructure and facilities for efficient global trade and logistics.
SIA hands trucking contract to WFS in the UK
Singapore Airlines has extended its cargo partnership with Worldwide Flight Services (WFS) in the United Kingdom with a new contract for domestic trucking services connecting 18 regional offline airports. WFS has provided cargo handling for the airline in the UK since 2015 from London Heathrow and Manchester airport, including trucking services between the two hubs and offline handling services across other UK stations.
The ground handling company now handles over 45,000 tonnes each year for Singapore Airlines, which currently operates 30 flights a week
ex-Heathrow and seven weekly services from Manchester using a combination of Airbus and Boeing widebody aircraft.
WFS has expanded its transport fleet in the UK to 28 tractor units
and 31 trailers to help move the 50,000 tonnes it moves annually by road. These include Q7 curtainsided and Q6 refrigerated units as well as and roller-bed temperaturecontrolled trailers with state-of-theart temperature management units.
Lödige Industries delivers automated system for AAT
Lödige Industries has completed an automated handling system for pallets and unit load devices for long-time partner Asia Airfreight Terminal, which will allow the handler to offer services that were previously unavailable in Hong Kong International Airport, including temperature-controlled truck docks and the ability to screen, build up and break down cargo entirely within a temperature-controlled environment.
The new palletized cargo handling system features modern and climateresistant sensors in combination
with an enhanced maintenance and control system to ensure the efficient and safe flow of fragile goods.
The two companies first worked together in 2006, which saw Lödige Industries handing over a sizable multi-level material handling system for AAT, which was modernised in 2018. AAT awarded the contract to Lödige Industries in June 2021 and started operating its fully certified cold chain facility in July 2022. Lödige also completed similar projects at Changi and Chengdu airports in the same year.
SATS and others join Cool Chain Association
Celebrating its 20th anniversary in December 2022, the Cool Chain Association (CCA) welcomed SATS Ltd, Brussels Airport, Boeing, and Validaide as new members. SATS is the chief ground handling and inflight catering service provider at Singapore Changi Airport with a cargo terminal network that spans over 10 major locations, including Hong Kong and Dammam.
Brussels Airport has re-joined the CCA after a short hiatus to support the organisation’s new drive to deliver programmes with tangible results. The airport wants to help
improve the process of moving fresh produce and flowers with its new perishable management app, which aims to tackle wastage and increase transparency between stakeholders.
Boeing’s membership, meanwhile, relates to its commitment in enhancing sustainability in aviation and the cold chain. The aircraft manufacturer recently presented a case study on the performance of its aircraft’s temperature-controlled capabilities for a consignment of flowers from South America to Europe.
AirAsia’s Teleport set for growth with fresh funding
Teleport is set to boost its cross-border delivery capabilities across key markets in Southeast Asia as it raised US$50 million in capital from large institutional credit investors. The logistics venture of
Capital A (formerly AirAsia Group Bhd) will use the funds to induct additional freighters and build strategic hubs in Indonesia, the Philippines and Malaysia, as well as technology that allows anyone
to ship air freight within 24 hours across Southeast Asia.
Teleport said its core focus over the last 4 years has been to provide affordable air logistics solutions across Southeast Asia, supported by a mid-mile advantage through AirAsia’s passenger fleet. The digital freight forwarder has seen its market share in terms of intraSEA cargo volume jump to 9 percent as of Q3 2022 from 2 percent in 2021. It also grew its e-commerce business six times year on year.
The company plans to take the lead in the next three years with an extended air network coverage as it prepares for the induction of A321F freighters set to arrive in the first quarter of 2023.
MSC moves into air cargo with branded B777F
Mediterranean Shipping Company S.A.or MSC has taken the next step in developing its air cargo solution with the delivery of the first B777-200 freighter, branded with company livery. The brand new jet built by Boeing and operated by Atlas Air, will fly on routes between China, the US, Mexico and Europe.
The new air cargo division will be headed by experienced Jannie Davel,
senior vice president for air cargo at MSC, who most recently headed Delta’s commercial cargo operations, before joining MSC in 2022.
Aircraft lessor Atlas Air is supporting MSC on an aircraft, crew, maintenance and insurance (ACMI) basis. The widebody freighter is the first of four B777-200Fs in the pipeline, which are being placed on a long-term basis with MSC.
CMA CGM offers available capacity on CDG-HKG route with CargoAi
CMA CGM’s air freight capacity and rates are now available for instant booking on CargoAi, becoming the 71st airline to join the online cargo booking platform. The cargo airline of major transport and logistics player, CMA CGM Group will now offer its capacity on scheduled freighter services using its Boeing 777F between Paris Charles de Gaulle (CDG) and Hong Kong airport (HKG).
Describing itself as airfreight’s fastest growing digital enabler, CargoAi intends to position itself as a sustainability expert and influencer within the industry as well, partnering
with Neste in November 2022 to allow purchase of SAF in smaller quantities. CargoAi closed off 2022 with instant
online booking for air freight made available for 71 airlines from 195 origins to 447 unique destinations. Its airfreight marketplace CargoMART now shows informed freight forwarders the least carbonproducing routes when searching for rates and availability.
Hong Kong Air Cargo conducts new Sydney chartered service
Hong Kong Air Cargo has launched a new chartered freighter service between Hong Kong and Sydney, Australia using an Airbus A330-200F. The first flight departed Hong Kong International Airport on Thursday, 8 December at 23:30 local time and arrived in Sydney the next day. The new service will operate three times each week.
In 2021, Hong Kong Air Cargo received approval to operate flights to nine new destinations, including
Sydney. The airline said the new service will allow customers to streamline cargo consignments originating from both the airline’s current route network and its hub in Hong Kong to Australia. William Chan, Director of Government and Public Affairs, Hong Kong Air Cargo, said the airline will continue expanding its route network to serve customers’ needs.
“As the global market recovers from the pandemic, it is important for us to focus on what we do well and respond to our customer’s needs whilst ensuring that we strengthen Hong Kong’s position as the international cargo hub.”
Kuehne+Nagel welcomes first B747-8F from Atlas Air
Kuehne+Nagel is glad to welcome its first Boeing 747-8 freighter complete with company livery as part of a long-term charter agreement with Atlas Air.
The Swiss transport and logistics player now expands its air freight network by chartering the entire capacity of the very last two 747-8F aircraft from their delivery by Boeing.
The aircraft is one-half of the last two ‘Queen’ freighters to come out of a Boeing facility. Kuehne+Nagel said the 747-8F aircraft will be used on transpacific routes and the service will be linked with its intra-Asia network.
“With Atlas Air taking delivery of the final 747s for its customer Kuehne+Nagel, this iconic Boeing airplane will continue to move cargo around the world for decades to come,” said Kim Smith, Vice President and General Manager of the Boeing 747/767 Program “As we say goodbye to the ‘Queen of the Skies,’ we’re proud of her legacy as an airplane that propelled aviation innovation and later laid the foundation for our family of freighters.”
Malaysia grants STC approval for AEI’s B737-800SF
Aeronautical Engineers, Inc. (AEI) in mid-November received approval for its STC (ST02690LA) from the Civil Aviation Authority of Malaysia for the company’s 12-pallet position B737-800SF freighter conversion.
AEI is currently the only conversion company to have ETOPS 180 approval on the 737-800 freighter conversion, which offers a main deck payload of up to 52,700 lbs or
23,904 kilos. The company is also capable of converting all 737-800 line number aircraft.
Malaysia Airlines is the largest operator of the 737-800 in its home country. Other airlines that house the aircraft in its fleet include regional operators Firefly and Batik Air, whilst KargoXpress and World Cargo Airlines operate freighter conversions of the aircraft type.
JD Logistics opens second warehouse in Dubai
JD Logistics has opened its second warehouse in Dubai to offer supply chain services that cover Asia, Africa and Europe for local and crossborder merchants. The 12,000sqm warehouse is located in Dubai Industrial City, a 20-minute drive from the Port of Jebel Ali, where JD Logistics can digitally manage inbound and outbound inventory using its self-developed warehouse management system.
Logistics services at the new Dubai warehouse range from B2B and B2C, including sea and air transportation, transition and customs clearance as well as warehousing, sorting, labeling, drop-shipping, for both bulky and small to medium-sized products.
One of JD Logistics’ customers in the Middle East is e-commerce platform Fordeal who has been able to cut warehouse costs by 30 percent, whilst reaching fulfillment accuracy of 99.5 percent, with the help of JD’s inventory management and packing recommendation systems.
Singapore takes a crack at FedEx sorting robot
FedEx in December introduced an AI-powered intelligent sorting robot at the Singapore regional hub as part of the integrator’s continued push to digitize operations and build a smart logistics network.
According to FedEx, the sorting robot has an accuracy rate of more than 98.5 percent and the ability to sort up to 1,000 packages per hour, carrying up to 5 kilos at a time. Earlier
this year, the logistics integrators also deployed a similar sorting robot at its e-commerce shipment sorting center in Guangzhou.
This project in Singapore is supported by the Aviation Development Fund, which is one of the key initiatives by the Civil Aviation Authority of Singapore (CAAS) that supports the development and growth of Singapore’s aviation industry.
Emirates SkyCargo adds UK to its shopping platform
Emirates Delivers, the e-commerce platform of Emirates SkyCargo, has added the UK amongst its homedelivery locations. Customers can register for free on www. emiratesdelivers.uk and get a unique and free mailing address in the UK.
Items purchased from UK e-commerce retailers will be delivered to the address, where goods can be stored free of charge for up to 30 days. Customers can continue to shop and build up their purchases with the flexibility to create a shipping request anytime within these 30 days. Once a shipping request is created, purchases will be consolidated into one parcel and
delivered to their designated UAE address within 3-5 days.
Customers can also request for photos to be taken of the packages
before these are transported to Dubai, with tracking from the moment it reaches the warehouse in the UK to the moment it lands on their doorstep in the UAE.
DHL obtains lithium battery certification in the UK
DHL Global Forwarding UK received its CEIV Li-batt certification for six sites in December, becoming the first logistics company in the United Kingdom to be certified. The certification covers Birmingham, Glasgow, London,
Luton, Manchester and Purfleet. DHL Global Forwarding said the company is already working on auditing and certifying other key facilities in its air freight network.
CEIV Li-batt was introduced in response to concerns from within the aviation industry about a lack of awareness of the danger lithium batteries pose, and an increasing number of incidents of intentionally misdeclared and noncompliant lithium batteries in cargo shipments. It establishes baseline standards to improve the level of
competency and quality management in the handling and carriage of lithium batteries throughout the supply chain.
“Being the first DHL Global Forwarding country to receive this certification, as well as the first organization in the UK, clearly demonstrates our commitment to a safety first culture and will hopefully lead to our fellow countries, competitors and other industry stakeholders following our lead,” said Paul Chinery, vice president for air freight at DHL Global Forwarding UK.
SF Airlines entrusts new JFK service to WFS
Worldwide Flight Services (WFS) has been appointed to handle SF Airlines’ new scheduled freighter services at New York’s JFK International Airport. The Chinese airline is operating twice-weekly Boeing 747-400F flights from Hangzhou, the capital of China’s Zhejiang province, to New York. WFS
expects to handle some 12,000 tonnes each year for SF, which previously operated only ad hoc charter services on the route.
SF will be served in Building 73, a 52,000-sqft facility housing a multitier ETV system and a connected
ramp with parking for one Boeing 747 freighter. It is one of seven multitenant facilities operated by WFS at JFK. The cargo handler was originally appointed to handle SF’s charter flights at the New York airport back in 2019.
WFS expects to add another 350,000 square feet of cargo capacity in New York by the third quarter of 2024, which will be Building 260. The future facility will feature state-of-the-art warehouse operations and provide three more ramp parking positions for cargo aircraft with a capacity to handle more than 350,000 tonnes.
Kuehne+Nagel rolls out standard for shipping semiconductors by air
Kuehne+Nagel has launched a new air freight service to approach the unique requirements of global semiconductor supply chains. The integrator noted that the new air freight service will support its customers with improved visibility, security, reduced risks and automated processes. The offering is based on the ‘SemiconChain’ quality standard that guarantees process standardisation, continuous improvement, and service excellence across its network.
“The SemiconChain network is global and built around 25 key industry locations. Each location operates under the integration of the global quality standards ISO 9001-2015 and
IATF 16949. The entire network is fully implemented, audited and certified to ensure full compliance of the service offering,” the forwarder noted.
The company has placed particular importance on time-defined services for the new air freight offering, especially for time-critical and out-ofhours situations. “Our new service will help customers navigate the semiconductor market’s volatility and nuances, ensuring an uninterrupted supply chain. The initial feedback out of validation sessions with leading semicon industry stakeholders is very positive,” said Barry O’Dowd, global head of high tech at Kuehne+Nagel.
DHL plans 5-year warehouse expansion in Taiwan
DHL Supply Chain plans to invest €10 million in the next five years to expand facilities in northern Taiwan as it looks to fulfill the logistics demand of the semiconductor and life science and healthcare sectors. The contract logistics division of the German postal group is set to open its latest facility in Taoyuan (Taoyuan Distribution Center - Jian Guo) in December this year, which is the second site for the division in Taoyuan.
The 10,000-sqm facility offers excellent connectivity to National Highway No.1 (by land), Taipei port (by sea), Taoyuan International airport (by
air), and science parks in Hsinchu and Taipei. The so-called ‘green building,’ equipped with solar panels to reduce carbon emissions, will increase DHL’s total warehousing space in Taoyuan to 37,000 square meters. DHL Supply Chain plans to increase its total footprint in Taiwan to 200,000 square meters by 2027.
Rhenus opens new hub facility in Mumbai metro
Rhenus India in December inaugurated a modern 300,000-sqm multi-user facility in the Indian city of Bhiwandi as it looks to focus on providing warehouse services for the chemical and petrochemical sector alongside industrial, engineering and manufacturing.
This modern warehouse, strategically located near the financial and business city of Mumbai in the west of India, features a warehouse management system to provide end-to-end visibility, along with fully equipped
loading and unloading docks, as well as new racking and material handling equipment to support speedy storage and retrieval of goods. It also fully complies with the latest global standards for health, safety and the environment (HSE).
Rhenus Logistics opened another multi-user facility in Delhi NCR a couple of months ago. Covestro, a leading manufacturer of hightech polymer materials with headquarters in Leverkusen in Germany, is the flagship customer in the new Mumbai warehouse facility.
Gebrüder Weiss eyes Türkiye’s transport hub appeal
Transport and logistics company Gebrüder Weiss is preparing for the growing appeal of Türkiye to European importers amidst increased demand for transport in one of the main alternate routes connecting Asia to Europe.
The forwarder’s main focus is on transports between Türkiye and its key trading partner, Germany, as well as the Benelux countries. Thomas Moser, Director and Regional Manager Black Sea/CIS at Gebrüder Weiss, said the demand for transport on the Middle Corridor route is steadily increasing. “Due to the increased transit volume,
Türkiye is gaining further importance as a central logistics hub between Europe and Asia,” Moser added.
The Middle Corridor runs from Europe through Türkiye, Georgia, Azerbaijan and Kazakhstan to China. It serves as an alternative
route to the Northern Corridor, which passes through Russia. Early in December 2022, Gebrüder Weiss made the successful integration of 3S Transport & Logistics, which it acquired in 2021, into its Türkiye organization, including the latter’s location near Düsseldorf.
Top players reunite at the 9th Payload Asia Awards
Top executives and well-renowned companies in the air cargo and logistics industry gathered in Singapore last Friday, 28 October, for the 9th edition of the Payload Asia Awards. With restrictions out of the way, there was no shortage of handshakes and smiles with drinks flowing at the grand ballroom of Sheraton Towers Singapore. Over 130 top executives from across the globe attended the gala dinner and ceremony, with none other than Mr Anand Stanley, president of Airbus Asia-Pacific, delivering the keynote speech.
Twenty-two (22) trophies were handed out during the night with Singapore-based ground handler SATS Ltd. taking home two awards, including the Global Ground Handler of the Year. Polar Air Cargo, whose executives flew in from Hong Kong, also received two trophies, including the coveted top award Global Carrier of the Year.
Other mainstays at the awards like DHL Express, meanwhile, received the Global Express Provider of the Year for the seventh time, whilst Singapore Changi Airport was given the top award in the airport category.
“We are heartened to have received top honours from the industry as well as the Payload Asia panel of judges. I would like to appreciate our employees for their passion and steadfast dedication in delivering the most seamless experiences to customers even in difficult situations. In view of long-term growth and business sustainability, SATS will continue
Global Carrier of the Year Polar Air Cargo
Overall Carrier of the Year for Asia Pacific Cathay Pacific Cargo
Overall Carrier of the Year – Middle East Etihad Cargo
Best E-Commerce Carrier of the Year – Global Polar Air Cargo
Best E-Commerce Carrier of the Year – Asia Pacific Raya Airways
Rising Cargo Carrier of the Year Asia Cargo Airlines
Global Cargo Airport of the Year Singapore Changi Airport
Cargo Airport of the Year – Asia Pacific Hong Kong International Airport
Cargo Airport of the Year – Europe Brussels Airport
Global Ground Handler of the Year SATS Ltd.
Ground Handler of the Year – Asia Pacific SATS Ltd.
to drive service excellence in Singapore while replicating our capabilities and expanding our footprint globally,” said Bob Chi, chief executive for gateway services at SATS Ltd.
This year’s awards ceremony was made even more interesting with newcomers in the Awards’ winners circle. GEODIS APAC took home the Outstanding Logistics Player of the Year, whilst Etihad Cargo, Raya Airways and Asia Cargo Airlines received trophies in their respective airline categories.
In its 9th edition, the Payload Asia Awards recognises the industry leaders and forward thinkers of the air cargo and logistics supply chain who stay at the forefront of the innovations to lead the new economy. This year’s winners were decided based on online votes and the evaluation of an expert jury panel, which include Brandon Fried, Executive Director, AfA; Celine Hourcade, founder and CEO, Change Horizon; Christos Spyrou, CEO, Neutral Air Partner; Edip Pektas, CEO, Airblox; Emma Murray, CEO and founder, Meantime Communications; Frank van Gelder, CEO, Pharma.Aero; Glyn Hughes, Director General, TIACA; Paul Damkjaer, CEO, IFCBAA; Paul Tsui, Managing Director, The Janel Group of HK; Peyton Burnett, Managing Director, TAC Index; Rod Franklin, Academic Director, Kuehne Logistics University; Tulsi Nowlakha Mirchandaney, Managing Director, Blue Dart Aviation; Vivien Lau, CEO, Jardine Aviation Services.
Ground Handler of the Year – Middle East dnata
Ground Handler of the Year – Europe Vienna Airport
Cold Chain Service Provider of the Year dnata Singapore
Global Cargo Sales Agent of the Year Ansync Global Cargo Sales Agent of the Year – Asia Pacific P-Cube Aviation
Cargo Booking Platform of the Year WebCargo by Freightos
IT Provider of the Year Accenture China
Air Cargo Technology Provider of the Year Lödige Industries
Global Express Provider of the Year DHL Express
Outstanding Freight Forwarder of the Year DHL Global Forwarding
Outstanding Logistics Player of the Year GEODIS APAC
VIENNA AIRPORT Ground Handler of the Year - Europe
What does it mean for Vienna Airport to be awarded Ground Handler of the YearEurope at this year’s Payload Asia Awards?
This award as the best European Ground Handler by Payload Asia underlines the top quality of VIE Cargo Services in apron and cargo handling. The award also confirms the excellent positioning of Vienna Airport as an optimal air cargo hub for traffic between Asia and Europe. Extensive investments in Vienna Airport’s logistics and handling infrastructure ensure fast turnaround and trouble-free handling operations. A big thank you goes to the airport team, who perform great work and top-quality services every day. The recognition of VIE Cargo Services as best European Ground Handler of 2022 by Payload Asia follows other awards received by Vienna Airport this year and is further confirmation of the airport’s outstanding capabilities.
Can you tell us more about VIE Services? How has the pandemic influenced the airport’s overall direction in the near term and long haul?
With VIE Cargo Services, Vienna Airport runs a very strong in-house air cargo handler, which offers customers all important ground handling services from a single source: VIE Cargo Services operates a customs warehouse with more than 40,000 square metres and numerous special warehouses and facilities, e.g. for Dangerous Goods or Live Animals, as well as the GDP-certified Vienna Airport Pharma Handling Center. Handling takes place 24/7 and is certified in accordance with ISO 9001. Very short distances from the apron to handling facilities, warehouses as well as
truck ramps allow fast and direct access to the dense road feeder network of Vienna Airport, which with its location in the heart of Europe is the perfect cargo hub between Western and Eastern Europe. ULD handling facility as well as comprehensive monitoring and security systems further round off the extensive range of capabilities of VIE Cargo Services and Vienna Airport.
In the Corona crisis, previous extensive investments in the logistics infrastructure proved their worth at Vienna Airports cargo operations. While ground handling at other European air cargo hubs were characterised by bottlenecks in handling capacity during the Corona crisis and cargo turnovers became unbalanced and delayed, Vienna Airport was able to demonstrate trouble-free and fast handling operations thanks to sufficient capacity. Vienna Airport continues to adhere to this strategy with extensive capacities VIE Cargo Services alone can handle up to 350,000 tonnes per year at Vienna Airport. In 2021, for example, capacities for roughly 90,000 tonnes per year were still available. Customers will therefore find extensive and reliable capacity at Vienna Airport for strong growth in the years to come.
What are the airports ‘plans in terms of sustainability? How is the company engaging other stakeholders to make this issue a top priority?
Following a consistent and comprehensive sustainability strategy, Vienna Airport and VIE Cargo Services as its subsidiary plan to achieve full CO2 neutrality by 2023. Already 85 percent of CO2 emissions has been
reduced since 2012. A milestone was achieved in the spring of this year. With an area of 24 hectares and a peak capacity of 24 megawatts, Vienna Airport began operating Austria’s largest photovoltaic system. A comprehensive catalogue of measures underlines Vienna Airport’s sustainability strategy. For example, the fleet of ground vehicles is currently being converted to electric drive. Energy-efficient building management is achieved, for example, through the extensive use of LED lamps and the implementation of optimised thermal insulation as well as facade design. A fuel pipeline directly connects refinery plant and airport. Along the use of underground fuelling, about 25,000 truck journeys can be avoided per year.
Which technologies or infrastructure are you looking at for future investment?
Vienna Airport is already very well positioned in terms of both technology and infrastructure. The airport will be CO2-neutral as early as next year, and at the same time the existing cargo handling capacities, which have proven to be reliable and fast, will allow for a further 90,000 tonnes per year. Located directly in the vicinity of the airport, AirportCity Vienna also offers logistics companies a wide range of opportunities to join the broad-based cargo community at Vienna Airport in modern and large warehouse and office space. In combination with the modern and spacious handling infrastructure of Vienna Airport and VIE Cargo Services, both airlines and logistics companies can focus on growth here. For example, in November 2022 Qatar Airways Cargo launched a new weekly cargo-only service from Vienna Airport to Doha.
“Congratulations to the airport team, which displays such a high level of commitment day in and day out and ensures top quality services in apron and cargo handling. This award is one of a series of distinctions which our airport has already won this year, thus serving as further confirmation of the high performance of Vienna Airport. Vienna has proven its value as a reliable international hub, especially in times of crisis. For this reason, my special thanks go to the entire airport team.” - Julian Jäger, Joint CEO and COO, Vienna Airport
“We would like to thank the jury and all participants who voted for us. We see the award as an opportunity to thank our airport apron and cargo team which provides the highest quality services on a 24x7 basis. At the same time, we consider the award to be an incentive for us to continuously improve our offering even more on behalf of our customers.” - Michael Zach, Vice President Sales, Finance & Cargo, Ground Handling & Cargo Operations at Vienna Airport.
POLAR AIR CARGO Global Carrier of the Year
Best E-Commerce Carrier of the Year - Global
How does it feel to have won two awards at this year’s Payload Asia Awards?
The highly-coveted Payload Asia awards are a true measure of the confidence of the industry in the ability of market players to deliver exceptional air cargo and supply chain service. It’s a great honor to be recognized by Payload Asia as both Global Carrier of the Year and Best E-Commerce Carrier of the Year! I could not be more proud of our teams around the world, whose focus on making connections with and for our customers and partners truly sets Polar apart. Our partnership with our shareholders Atlas Air Worldwide Holdings and DHL Express helps empower Polar’s success.
Which trends and developments do you believe will strongly impact the future of our industry, and why?
In addition to the ongoing impact of the pandemic, I think our industry will continue to be impacted by matters like geopolitical conflict and the macroeconomic environment that causes fluctuation in fuel prices, currency exchange, inflation, and more. Within those developments, two trends that impact the air cargo industry are digitization and a shift in manufacturing hubs.
Digitization
For practicality, sustainability and streamlined processes, most industries have rolled out and continue to evolve digital tools to reduce reliance on paper-driven processes. The air cargo industry has so many manual systems and processes, digital adaptation has been complicated. Whilst we know that digital tools allow for better systems integration, reduce risk of manual error, and help employees be more efficient—this saves air cargo carriers time, and delivers a better experience for customers.
Furthermore, digitization makes us less reliant on paper, which supports the industry’s move toward more sustainable business practices. It’s
the right thing to do as responsible corporate citizens and it’s appreciated by our customers, who are also taking proactive steps to minimize environmental impact within their own supply chains.
A great benefit across the board of digitization is systems integration, which will greatly reduce risk of manual error. An IATA study found that a single cargo shipment’s information can be retyped manually as many as 97 times as it moves through the chain of custody because so many systems are proprietary and do not interact digitally with each other. That’s 97 chances for a mistake, and mistakes cost time and money. Of course, workforce training is key. We have to invest in our people so that they are prepared to leverage new systems and devices that will make them more successful in their roles.
Decentralization of manufacturing hubs
GE’s famed and fabled Jack Welch once said: “Ideally, you would have every plant you own on a barge to move with currencies and changes in the economy.” While that is not exactly practical, I believe the air cargo industry will have to shift to accommodate a decentralization in manufacturing.
We may see a decentralized approach to manufacturing to avoid the impact of matters like public health crises, conflicts, labor issues and tariffs. Infrastructure and workforce readiness will be key to the expansion of manufacturing, and will impact the end-to-end supply chain. Within Asia, we may see Vietnam, Bangladesh and other markets playing a bigger role in manufacturing going forward, as well as a shift from Asia into Africa and the Americas.
The decentralization of manufacturing hubs will require a shift in the flow of raw goods to reach new manufacturing centers, and an increase in points of departure for finished goods that
need to reach consumers around the world. This presents a real opportunity in the air freight industry to grow our networks, add new lanes and help our customers expand as well. The key is being ready, being nimble, knowing the requirements and starting the process for growth now—not once the manufacturers are ready to ship.
Given the high importance emphasized with regards to sustainability, what are the company’s immediate plans to help in decarbonizing air transport and aviation?
At Polar, taking responsibility for minimizing our impact on the environment is part of our DNA. We support the IATA resolution to achieve netzero carbon emissions from operations by 2050, to bring the air transport industry in line with the Paris agreement to limit global warming to 1.5°C. We work every day to move the needle, and we collaborate with both Atlas and DHL on objectives, targets and best practices.
Our efforts include operating a fleet of energy efficient electric and hybrid vehicles on the ground, deploying electric cargo handling equipment at our stations, leveraging digital tools rather than paper wherever possible, and supporting and encouraging employee-led initiatives in our facilities globally—everything from adjusting thermostats, installing energy efficient light bulbs, stepping up our recycling efforts and planting trees in the communities where we live and work.
Of course, this is all supported by investments in our facilities and infrastructure including warehouse improvements and expansions to meet the growing needs of our customers in the most environmentally-supportive way. We’ve also recently rolled out carbon footprint reports for our customers, and work with them to understand how Polar can help them achieve their sustainability goals.
“The key is being ready, being nimble, knowing the requirements and starting the process for growth now—not once the manufacturers are ready to ship.”
- Jon Olin, EVP and Chief Operating Officer, Polar Air Cargo WorldwideSingapore Changi Airport Global Cargo Airport of the Year
What does it mean for Changi Airport to win the Global Cargo Airport of the Year at this year’s Payload Asia awards?
We are heartened to receive a vote of confidence from the community. Pursuing air cargo connectivity and capacity, as well as developing our cargo handling capabilities are paramount to the Changi air cargo hub. We will continue to work closely with our air cargo community to enhance Singapore’s position as an important air logistics hub.
How important is the resumption of travel to your operations and how do you see this affecting your cargo operations?
The resumption of travel helps to regain our connectivity to the world and offers more convenient options to travelers. Singapore is at the forefront of passenger traffic recovery among major Asian airports. The steady recovery of passenger traffic has also led to an increase in belly hold capacity.
However, Changi’s air cargo throughput has softened in recent months due to weakening air cargo demand amid global economic uncertainty and inflationary pressures. Despite short-term headwinds, we remain positive on the longer-term growth of air cargo in the region. Intra-Asia trades are expected to grow strongly as Asia anchors itself as a key consumption centre and global manufacturing hub. Singapore, being at the heart of Southeast Asia, is well positioned to tap on the growth as the region seeks supply chain diversification and sharpen its manufacturing capabilities.
Talking about sustainability, what types of green technologies has Changi pioneered in Asia Pacific? Where is the air cargo and logistics industry lagging when it comes to their sustainability initiatives?
Global organisations are increasingly looking at sustainability when making business and
supply chain decisions, as they integrate these considerations into day-to-day business operations. Most have also pledged net zero carbon-emission commitments. Effective policies and collaboration across the supply chain stakeholders are critical to unlock the full potential of emerging sustainability solutions.
In this regard, sustainability is an integral part of Changi Airport’s passenger and cargo business. To build a sustainable future, Changi Airport Group (CAG) has pledged to achieve zero carbon growth until 2030. This means that we will limit our carbon emissions for fuel and electricity consumption at 2018 levels, even as we project to serve more travellers and expand our operations in the years ahead.
Today, over 99% of CAG’s carbon emissions come from our use of grid electricity. CAG’s decarbonisation efforts centre around reducing electricity consumption and using cleaner energy wherever possible. To reduce electricity consumption, CAG has implemented solutions that increase building energy efficiency. For example, CAG regularly upgrades its chiller plants and lighting to the best-in-class energy efficient models. We trial technologies that can reduce our building’s heat loads and manage our systems in a smart manner. CAG is also working closely with government agencies to explore innovative ways of obtaining cleaner energy.
At the same time, we are keeping our eye on the longer term with an aspiration to achieve net zero carbon emissions by 2050. Realising this aspiration will require quantum leaps in technology and for Singapore to obtain and use cleaner energy on a nation-wide level.
Apart from CAG’s own emissions-reducing initiatives described above, we also work closely with our partners to support their sustainability initiatives. Sustainable aviation fuel (SAF) will be
a key de-carbonisation lever for airlines. CAG also partnered with the Civil Aviation Authority of Singapore and Singapore Airlines on the SAF trial which commenced in 2022. We look forward to working closely with other airline partners to accelerate the use of SAF at Changi Airport.
How important is Changi’s role in building and engaging the airport community in Singapore?
The supply chain disruptions experienced by businesses in the last two years due to the pandemic has underscored the importance of supply chain agility and resilience. To this end, greater supply chain visibility is more important than ever, and this can be achieved only through data-sharing among the stakeholders across the air cargo supply chain which support community collaboration.
In 2020, Changi Airport introduced a community data-sharing platform – Changi Air Cargo Community System (ACCS), which is an open ecosystem of collaborative and community based applications underpinned by an informationsharing platform that aggregates data from all parties involved in the cargo handling process. ACCS users include airlines, cargo handlers, freight forwarders, and trucking companies can all benefit from this platform and its use cases.
Among the first and community-prioritised use case is the Truck Dock Slot Booking (TDSB) application, which aims to even out cargo lodgment and collection at our cargo handler’s air freight terminals, thereby reducing waiting time, optimizing resources and providing greater insights to airport landside activities. With lesser truck waiting, it further supports Changi Airport’s sustainability efforts to reduce carbon emissions. We plan to introduce other community-based applications in the near horizon to unlock further efficiency and productivity gains, as well as improve supply chain visibility.
Effective policies and collaboration across the supply chain stakeholders are critical to unlock the full potential of emerging sustainability solutions.”
- Lim Ching Kiat, Managing Director, Air Hub Development, Changi Airport
SATS LTD.
Global Ground Handler of the Year Ground Handler of the Year - Asia Pacific
How does it feel to have won two awards at this year’s Payload Asia Awards? We are honoured to have been recognised by our industry and the Payload Asia panel of judges. I would like to say thank you to our employees for their passion and steadfast dedication in delivering seamless and best-in-class experiences to customers throughout the pandemic as well as amid the current, ongoing recovery. Our appreciation also goes to all airport partners and airline customers for their unstinting support and understanding throughout these volatile times.
The good news is that the global aviation industry is emerging from the many challenges it has faced and is seeing strong recovery in travel. At SATS, our focus has always been on staying resilient and fulfilling our purpose to feed and connect communities. We look forward to doing this even more impactfully in the coming months and years.
What does it take to be a global player in ground and cargo handling?
One of our key learnings from the pandemic was the need to have a strong home-market base, coupled with a truly global footprint and innovative operational capabilities. Our customers want greater visibility and control over the entire supply chain and operations, and increasingly want solutions that work seamlessly across borders. At SATS, our twin-engine growth strategy has positioned us to deliver bestin-class services in our Singapore home market while expanding our footprint globally.
From launching Asia’s first on-airport perishable handling centre, SATS Coolport, to receiving the world’s first
IATA accreditation for lithium battery handling, we have been pioneering ways to ensure safe and seamless connections for passengers and cargo. We are also grateful that by harnessing digitalisation and working collaboratively as an ecosystem, we have been able to maintain Changi’s pre-eminent air hub status. With Singapore as our lighthouse site, we will continue to extend our quality of service to customers in overseas markets.
Talking about sustainability, how do you see SATS contributing to this industry cause? What aspects is the company prioritising in view of sustainability? Our sustainability framework comprises three pillars with corresponding 2030 goals that are mapped to four UN Sustainable Development Goals: (1) develop smart infrastructure; (2) reduce food and packaging waste; and (3) nurture skills for the future.
SATS is in a unique position because we are able to address sustainability from a food and aviation perspective across various geographies. As a market leader in a larger interdependent ecosystem, we strive to align and support the mobilisation of sustainability efforts with stakeholders. As a service provider, we also hope to be a decarbonisation ally, helping our customers to be more sustainable.
In a bid to shape the future of our industry, we are collaborating with our ecosystem partners to drive increased sustainability. In line with Changi’s Sustainable Air Hub blueprint, we have already converted 38% of our ground support equipment, such as baggage tractors and forklifts, to electric variants. SATS has also deployed one of the largest arrays of solar panels at Changi,
spanning almost seven football fields. In parallel, we are working with partners and customers to find innovative solutions to reduce food and packaging waste.
Given the current business environment, where do you see the company investing its resources to maintain the growth trajectory?
The Singapore hub is core to our business, and we will continue to invest in driving operational excellence and productivity through infrastructure and ground support equipment upgrades, digitalisation and innovation, and automation and robotics. To ensure that the Singapore hub remains competitive and attractive, we will test new air cargo operating models and continue to build quality corridors across our network to drive volume growth and flow of goods through our facilities.
In addition, we are taking a transformative step towards becoming a leading global air cargo handler through the proposed acquisition of Worldwide Flight Services, as announced in September 2022. Being at the heart of global air cargo flows, with more than 200 stations in over 20 countries, this platform will allow us to tap into powerful economic and industry trends, as well as deliver greater sustainability impact. This strategic acquisition will enable SATS to unlock growth options and gain the ability to better withstand market volatility and uncertainty, while continuing to strengthen our Singapore core.
We look forward to supporting our customers with new cargo handling solutions and capabilities, enhanced service quality, greater digitalisation, and better visibility and traceability across the whole supply chain.
Democratising digital transformation in air logistics with Cargo Community Network
Founded in 1991, Singapore-based Cargo Community Network (CCN) provides cargo community systems (CCS) for the air freight industry. The company serves not only air carriers and freight forwarders, but also shippers, ground handling agents, and customs authorities. CCN’s services have evolved to encompass not just air cargo data exchange, but also cargo management, customs compliance, security, screening compliance and other digital solutions for the air freight industry.
Payload Asia talks to Teow Boon Ling, CEO of CCN, for an exclusive.
How would you describe the air cargo collaboration platform that you recently launched, CUBEforall?
How is it different from other solutions in the market?
We develop new applications on our own; we also connect existing applications, whether built by CCN or others, to create a unified, workflowbased collaborative solution on the
CUBEforall platform. In fact, the CUBEforall platform allows users to select applications, ala-carte style, to fit their own processes. Our integration allows data sharing permissions to be activated, allowing users to both share and receive data to create an interconnected system. With our approach, data-silo gaps are bridged, and consignees gain visibility over the entire shipment. In addition, our integration adds value to existing applications used by their customers, so commercial viability is not a concern.
Based on your press releases, it seems that CCN’s operations are mostly in Asia Pacific. Would you say that your air cargo solutions are more compatible or designed towards customers in Asia Pacific?
The objective is to build a comprehensive ecosystem based on the CUBEforall platform, with products and services by technology logistics providers for our customers
globally. We work closely with our international customers and are fortunate to have strong support, particularly from our customers in Asia Pacific and Middle East. Our air cargo solutions are IATA compliant and are able to meet the diverse regulatory requirements that differ from country to country. We also customize our solutions to meet local requirements where relevant. With the introduction of CUBEforall, CCN will bring even more benefits to the air cargo community and will accelerate the push to extend its global footprint.
Companies with the mindset to be agile in thinking, embrace flexibility, and leverage technology solutions in their business processes will emerge strongerLaunch of CCN’s new open data collaboration platform on 9 November 2022 at Singapore Expo
Most would agree that the last 2 years (with Covid and supply chain disruptions) has certainly accelerated the adoption and awareness of digitisation in the industry. Do you agree? What’s your take on this?
The past two years have certainly seen an increased awareness and adoption of digitization in the industry due to the pandemic. However, we recognise that not all companies are at the same level of digital readiness. By creating the CUBEforall platform with a suite of digital-ready applications fully integrated for data collaboration, we aim to democratise the digital transformation to our entire community. Now, all our users ranging from MNCs to SMEs and even the very small setups will have access to our applications on the platform at reasonable costs, and thus are able to collaborate with one another easily.
Which region or business unit, would you say, is your biggest market or customer? Are there points in the air cargo supply chain that are harder to persuade to adopt digital platforms like CUBEforall?
Our biggest markets are Asia-Pacific (including China, India, Australia and New Zealand) and Middle East. Despite having seen success in these markets, certain sections and stakeholders within the air cargo value chain remain difficult to penetrate. One big segment that we wish to bring onto our platform is the Shippers community. This segment originates the shipment process, and hence should be included to reap most benefits out of digitalisation. We believe that providing as many value propositions as relevant to not only the shippers but to all our stakeholders in the community is the key to unlocking these doors, and encourage full industry ecosystem participation. This is why we are actively pursuing partnerships with technology logistics providers. By collaborating and integrating with these providers, we can offer our users versatile solutions that will be increasingly sought after. With stronger value propositions, we will make it easier for potential customers
to see the benefits of our offering, and actively seek us out
According to experts, the air freight forwarding market is softening compared to a year ago. What’s your outlook for 2023? What do companies need to consider to stay ahead of the game and buck any negative market trends?
As the COVID-19 pandemic transitions to an endemic stage, the direct-to-consumer ecommerce market volume has declined following the relaxation of lockdown quarantine measures, while geopolitical uncertainties, such as
the Russia-Ukraine conflict, have had a further deflationary effect on export orders and stabilised air cargo tonnages to pre-pandemic levels. Companies with the mindset to be agile in thinking, embrace flexibility, and leverage technology solutions in their business processes will emerge stronger, be in a position to maintain resiliency and secure competitive advantage against future negative market forces. CUBEforall is one such solution, helping to automate repetitive data entries, reduce costs and open up new collaboration opportunities with other stakeholders in the air cargo chain.
KLU’s Rod Franklin on logistics, supply chains and making a career out of it
Rod Franklin, academic director at Kuehne Logistics University, was kind enough to participate on the jury panel of the 9th Payload Asia Awards in 2022. In an interview, the professor shares his origin story into the academe, as well as insights on supply chain trends and making a career out of logistics.
Can you give us a brief background of your academic career?
I started out as an engineer. I received my undergraduate degree in mechanical engineering from Purdue University and went on to obtain a master’s degree in mechanical engineering from Stanford. I worked for several years as a design engineer for General Motors, but decided that being a technical engineer, at least from a career perspective, was not what I wanted. I was accepted at the Harvard Business School so I left GM and obtained my MBA there. I worked for several years after this running
manufacturing operations for an oil field services company, consulting, and ultimately moving into high technology with Digital Equipment Corporation and Entex Information Systems. At this time I felt I missed the world of academics, so I went back to school and obtained my doctorate in management at Case Western Reserve University. I was also changing careers at this time and I moved into logistics where I ultimately ended up at Kuehne + Nagel. When the Kuehne Logistics University was being planned I was asked if I would be interested in becoming a professor there and running the Executive Education portion of the University. I was ready to get back into academics, so I said yes and the rest is history. With respect to my teaching and research, I lecture in the areas of logistics and supply chain operations, data analytics, management science, and critical reasoning. My research
A career in logistics and supply chain management means a career in operations and it provides a path, in knowledgeable companies, to the C-level.
focuses on using game theory and Internet concepts to develop collaborative business frameworks for what is becoming known as the physical Internet.
What are the different graduate courses on offer at Kuehne Logistics University, particularly for budding supply chain professionals?
KLU offers full time Master of Science programs in Global Logistics and Supply Chain Management and General Management. It also offers
two part time Master’s programs; our part time MBA and our part time Sustainable Management and Operations program. KLU is a research university and offers PhD programs in management. We focus on humanitarian, maritime, general management, and supply chain topics in these programs.
What’s a common misconception on studying logistics and making a career out of it?
There are several misperceptions concerning a career in logistics. The first is that if you study logistics you will become a truck driver or a warehouse worker. There is nothing wrong with either of these professions, but logistics and supply chain management are far more than these tactical operating professions. In fact, with customer-facing organizations today not manufacturing their own products, the management of their supply chains is really what used to be called operations management. It is much more complex than inhouse operations management since you are managing third parties that have their own strategies that most likely are not in alignment with your company’s strategy. It takes significant knowledge of operations and collaboration skills to manage these relationships. Truth be told, a career in logistics and supply chain management means a career in operations and it provides a path, in knowledgeable companies, to the “C” level.
Do you think the pandemic has somehow changed the public’s view of the industry?
I believe that the pandemic made people aware of the importance of supply chain operations. However, I do not believe it has influenced career selection in individuals. Operations management is difficult and not really “sexy.” Young people today like the buzz of startups and the world of finance. These are the highly promoted career paths that both the press and, unfortunately, career counselors promote to them. If we are to get more young people interested in careers in operations, particularly supply chain and logistics
operations, we are going to have to make the profession more appealing. We are very poor marketeers.
Which trends do you foresee will reshape supply chains and the way we transport and deliver from origin to destination?
This is a topic I talk about quite a bit. There are several trends that I believe will have a significant impact on how future supply chains operate and on the world of consumption in general. The first of these is the obvious advance of digital technologies. These technologies are enabling AI, big data, robotics, autonomous operations, etc. All these areas impact supply chain operations and will, therefore, cause significant changes in how supply chains operate.
A second trend that will have a major impact is the environmental impact that humans have on our world. This impact goes beyond global warming to the plastics that are now polluting our oceans and water supplies, the waste we generate, and the deforestation that our ever-growing demand for food is causing. All these factors will create challenges for future supply chain managers.
A final trend that I see creating challenges in the geo-political changes we are seeing today. These changes call into question the globalization model that has taken hold in everyone’s mind over the past thirty years. I expect that these tensions will lead to trade wars and
a change in how supply networks are constructed. This will evolve over time, but the era of “free trade” appears to be coming to an end.
In your opinion, what are the key skill sets to build a successful career in logistics?
With digitalization becoming so important in all aspects of our lives, I believe that a good grounding in technology will be required for everyone in the future. In addition, an analytical mind is helpful in understanding the complexity of supply operations and arriving at solid, fact-based decisions. Finally, being able to work as part of a team, to collaborate and feel comfortable doing so, is an extremely important skill today.
For companies that are looking to hire the next generation of top talent, what are the key factors or aspects that they need to consider to attract these professionals?
Young talent wants a challenge, they do not like routine. They also do not like to feel that their advancement is driven by “time in grade” thinking, but by performance. They are impatient, so companies wishing to both attract and retain these individuals need to be clear about the career paths available to their new hires and not hold back individuals that exhibit drive and capability. They also need to ensure that these individuals are continually being educated since the world is changing so rapidly. These are the key factors I see in hiring and maintaining young talent today.
Air cargo’s 2022 ends with suppressed demand and lower rates from a year ago
The year 2022 wrapped up with less demand and lower rates for the industry as air cargo volumes declined for the 10th consecutive month in December, falling 8 percent year on year and down 13 percent compared to 2019, according to the latest air freight data from Xeneta.
Available capacity meanwhile recovered to 93 percent of the 2019 level. CLIVE’s ‘dynamic load factor,’ which provides a ‘true indication of market performance’ based on the volume and weight perspectives of cargo flown and capacity available, declined 7 percentage points yearover-year to 57 percent, also down 5 percentage points below the figure for December 2019.
Niall van de Wouw, chief airfreight officer at Xeneta describes the situation as ‘glass half full’ for most stakeholders with rates still up 75
percent to what was seen in 2019, pre-Covid.
“It would be easy to take a pessimistic view of the global air cargo market’s downturn, but this would ignore where it has come from. There is little use comparing it to the same time last year because then we had no Ukraine conflict, no high energy prices, no soaring interest rates, nor the impact of the subsequent cost-of-living pressures. Based on the global environment we see right now, airlines are still achieving rates 75 percent higher than pre-Covid,” said van de Wouw.
“That indicates the glass is very much still half full. If, in January 2020, you had asked airline executives if they’d like to see airfreight rates across the Atlantic or from Asia Pacific 75 percent higher, we would have heard a unanimous ‘yes’. The
The difference now is that there’s less pressure if you’re a shipper, even though you’re still paying more. In terms of the long-term sustainability of the air cargo supply chain, this will help.
difference now is that there’s less pressure if you’re a shipper, even though you’re still paying more. In terms of the long-term sustainability of the air cargo supply chain, this will help,” noted van de Wouw.
Xeneta said, year on year, air freight spot rates on heavy-volume corridors declined more sharply in the last month of 2022. Outbound Asia Pacific spot rates have been dropping for eight consecutive months, with spot rates from Asia
Pacific to North America of USD 5.38 per kilo, down 13 percent from October but above 87 percent from the 2019 level.
On the Asia Pacific to Europe corridor, the average spot rate in December fell 10 percent compared to October to USD4.67 per kilo, down 46 percent year-on-year but, again, remaining 92 percent above the pre-pandemic level.
On the Europe to North America corridor, reduction of winter flight schedules contributed to some resilience to this year’s market headwinds. December’s airfreight spot rate stood at USD3.25 per kilo, up 7 percent over the October level. Replicating the market trends on the other main lanes, this rate was below 46 percent versus a year ago but still 80 percent up compared to 2019.
What’s clear is what lies ahead remains uncertain. January last year was a surprisingly strong start for the air cargo market, but this new year will likely be impacted by the earlier Chinese New Year and growing concerns of, again, rising Covid
levels, which is already impacting some factory production in China.
“It’s clear it remains in a very unpredictable state given world events. We don’t see demand recovering quickly because of what is happening around the world, but we
Air cargo is much stronger than it was pre-Covid, but the current direction of the market means there is some degree of good news for everyone.
do expect to see supply continuing to come back into the market. This, of course, will put further pressure on load factors and rates.”
“We struggle to see where the tailwinds will come from, but looking at the broader perspective, we still see a very efficient air cargo market, especially when compared to the 7080% fall in ocean rates in the past 8-9 months. The fact that the airfreight domain is more competitive and more fragmented on the supply side meant rates didn’t go as crazy as we saw with ocean container prices, so the decline, now air freight volumes are lower, is more gradual. Air cargo is much stronger than it was preCovid, but the current direction of the market means there is some degree of good news for everyone,” van de Wouw added.
Hong Kong’s 12th ALMAC event, in hybrid format, ends on a high note
Hong Kong’s Asian Logistics, Maritime and Aviation Conference, jointly organised by the government and HKTDC, concluded successfully its 12th edition on 23 November. The signature twoday event, dedicated to the maritime, air freight, logistics and supply chain management sectors, attracted more than 14,000 physical and online participants from over 50 countries and regions.
The event drew in logistics and transport players, as well as shippers from diverse manufacturing industries, with more than 90 industry experts and leaders sharing insights at over 30 sessions. With the theme “the future of the sustainable supply chain: connectivity, collaboration, innovation, the conference, the hybrid-format conference served as a platform to address logistics issues and share business success. Satellite venues across Mainland China, the wider Asian region, Australia and Europe also hosted physical events
In one of the sessions, UPS Parcel Delivery Service described the potential opportunities of the Regional Comprehensive Economic Partnership (RCEP) for the countries involved by integrating regional trade and supply chains. Regional collaboration will be the key, so it was important to help SMEs understand the agreements and capitalise on these opportunities.