Payload Asia | October - November 2021

THE TRADE MAGAZINE FOR THE ASIA-PACIFIC AND MIDDLE EAST REGION VOL 37, NO. 5 OCT/NOV 2021

8TH PAYLOAD ASIA

AWARDS IN SINGAPORE WORLD CARGO SYMPOSIUM AND ALMAC 2021

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

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EDITOR’S NOTE

EDITORIAL/PUBLISHER

Dear reader, Thanksgiving is just around the corner and this special awards issue is certainly our way of thanking everyone for welcoming us back and supporting our shared passion for our beloved air cargo and logistics industry.

In this issue, we look back at the highlights of the 8th Payload Asia Awards, as we put the spotlight on the new and all-familiar faces that are leading the pack in the business of air freight. Turn to page 10 to find out who the winners are.

On page 22, we cover other well-attended industry events, including IATA’s World Cargo Symposium, held in Dublin, Ireland, as well as Hong Kong’s Asian Logistics, Maritime and Aviation Conference in November.

In an interview, we caught up with DHL Global Forwarding’s Asia Pacific chief, Kelvin Leung, to talk about the nuisances for supply chains in the region and how shippers can better utilise digitalisation to manage the complex web of transport and logistics.

This issue also covers a special feature on Sealed Air with the company’s vice president for Asia giving us a rundown on the company’s focus on sustainability as one of the pioneers in logistics packaging. We also have the latest industry news on carriers, lessors, airports, cargo handlers and forwarders, including a report from HAFFA. Enjoy reading the pages, and look out for the next issue on e-commerce and logistics.

Raymond Wong Publishing Director raymond@harvest-info.com Giullian Navarra PLA Editor editor-pla@harvest-info.com

OPERATIONS Mari Vergara Head of Operations mari@asiantvawards.com

MARKETING Franco Rafael Marketing Manager mktg@harvest-info.com

SALES Simon Lee Hong Kong, Europe and Middle East sales@harvest-info.com Chua Chew Huat Asia Pacific sales-sg@harvest-info.com Matt Weidner North America mtw@weidcom.com

TECHNICAL SUPPORT

Giullian Navarra Chief Editor

Michael Magsalin tech@harvest-info.com

Harvest Information Pte. Ltd. 1100 Lower Delta Road #02-05-8, EPL Building Singapore 169206

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CONTENT PAGE

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FEATURE Air cargo takes spotlight at 8th Payload Asia Awards

22

EVENTS Hong Kong gathers logistics leaders at ALMAC 2021

NEWS

24

C-SUITE DHL’s Kelvin Leung on supply chains, technology and Asia Pacific

EVENTS

04 Boeing values Asian freighter market to triple by 2040

05 Africa’s Astral to welcome

23 IATA and main trade

associations make their pact at WCS 2021

three new B757-200Fs

06 New cargo hub at ANC to

boost transpacific shipments

07 Eva Air extends WFS cargo contract in France

08 Kerry Logistics adds air freight

FEATURE 26 Sealed Air: From Bubble Wrap to the new age of smart, sustainable packaging

capacity in Asia

09 Shipping giant Maersk beefs up air freight operations

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APRIL 2021

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INDUSTRY UPDATE 28 HAFFA leads Hong Kong to form logistics alliance

WELCOME TO MIAMI

B O O K N O W A N D S AV E !

Early Bird until 30 November 2021

November 08–10, 2022 Miami, Florida, USA www.aircargoforum.org www.tl-americas.org

A M E R I CAS

supply chain forum

NEWS - CARRIERS Qatar Airways launches carbon offset offer with IATA Qatar Airways is the first cargo carrier to join IATA’s carbon offset platform CO2NNECT with an assurance that the credits bought to offset these emissions are from projects delivering independently verified carbon reductions, as well

as wider environmental and social The pilot uses IATA standards for benefits. calculating CO2 emissions per freight kilogram. Swiss freight forwarder The Doha-based carrier initially Kuehne+Nagel will be the launch launched the pilot project on four customer for the new carbon offset routes, with plans to extend to the scheme. rest of its cargo network of over 60 freighter destinations and more than 140 passenger destinations worldwide. To mark this partnership, Qatar Airways Cargo operated the first carbon-neutral air freight shipments on 1 November from Doha to Frankfurt, Zaragoza, Liège and Paris.

Last MD-11 freighter bids farewell to Lufthansa fleet An era of tri-engine jets within Lufthansa Group has come to an end as the cargo unit’s last MD-11F made its final approach at Frankfurt airport last 17 October. Flight LH8161 from New York (JFK) landed at Frankfurt Airport for the last time and touched

Boeing values Asian freighter market to triple by 2040

down ahead of schedule at 12:03 p.m. local time on runway 07R. This marks the end of commercial service of the three-engine MD-11F aircraft type with the German airline after more than 23 years. The aircraft with registration D-ALCC, also the last MD-11F registered in Europe, will now be sold to an American cargo airline. Since November 2013, Lufthansa Cargo has been gradually replacing the MD-11F freighters with twin-engine Boeing 777 freighters, which are much quieter and operate with lower emissions.

and leisure travel as well as air cargo planes. transportation, according to Boeing.

Citing support in diversifying The aircraft manufacturer values the global supply chains and meeting 20-year demand in Asia Pacific at $3.1 e-commerce demand, the company trillion or 17,645 new airplanes, with expects the cargo fleet to triple to widebody jets including passenger 1,160 airplanes, including new and Asia Pacific carriers are well-positioned and cargo models accounting for converted models, by 2040, roughly to capitalize on recovering business about a quarter or around 3,800 equal to North America’s cargo fleet.

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NEWS - LEASING Africa’s Astral to welcome three new B757-200F freighters African cargo airline Astral Aviation has signed a lease deal for three B757-200F aircraft from Warburg Pincus-backed aircraft lessor Aquila Air Capital and SkyExec Capital Jets.

The aircraft will be deployed on the Nairobi-Johannesburg and Nairobi-

Dubai scheduled service to meet the demand in vaccine transport and e-commerce shipments With this agreement, Astral Aviation claims it is the largest B757F operator in Africa and Middle East, not to mention the only B767F operator in the region. The airline said the B757F narrowbody jet, with a payload of up to 30 tonnes and a range of five hours, makes it a perfect freighter for the African, Middle East and South East Asia region.

ATSG picks Boeing for next converted freighter order Ohio-based jet lessor Air Transport Services Group, known as the largest leasing firm of 767-300 converted freighters, has contracted with Boeing for another four orders of the passenger to freighter conversion.

Boeing said the 767-300BCF now has more than 100 orders and commitments for the medium widebody converted freighter, a cherry on the icing for a record year for its freighters, the company noted.

ATSG operates a fleet of 106 Boeing aircraft, including more than ninety 767 converted freighters. It has its own conversion unit under PEMCO Conversions.

SmartLynx adds two more A321F to growing cargo fleet Malta-based ACMI operator SmartLynx is set to add two more A321Fs to its growing cargo fleet, which would bring its total aircraft to eight by the end of 2022. Both narrowbody freighters--registered MSN 1204 (9H-CGC)

and 775 (9H-CGD)---will be leased to SmartLynx by entities managed by US-based investment adviser Cross Ocean Partners and will be registered in Malta.

The passenger to freighter conversions are being undertaken by Precision Conversions in the United States and are expected to enter service in Q1 next year. Entities advised by the Cross Ocean Partners currently have five aircraft in its A321P2F programme with new conversions scheduled to be delivered in 2022 and early 2023.

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NEWS - AIRPORTS New cargo hub at ANC to boost transpacific shipments Russian airline AirBridgeCargo and airside services provider Worldwide Flight Services have inked a 10-year cargo handling contract at Liege airport. WFS will handle export and import cargo for 15 of the Boeing 747 freighter flights each week and has

already subleased half of ABC’s new cargo terminal at the Belgian air hub to support other carriers.

The 12,500-sqm Building 24 cargo terminal at LGG has the capacity to handle 150,000 tonnes each year, and WFS provides both cargo and ramp handling services with a facility next to the airport’s freighter parking area. The building provides a dedicated pharma zone for temperature-controlled products and will enable the special handling requirements of high-value shipments and perishable cargo.

Hongyuan Group sets up air cargo hub at Brussels Airport Chinese logistics player Hongyuan Group is eyeing more growth in air freight to Europe as it looks to set up its own air hub at Brussels Airport.

The two companies have signed an MoU to further develop the Belgian airport as a main gateway for general cargo and e-commerce flows between China and Europe.

Hongyuan has signed a long-term lease agreement for a warehouse at Brussels Airport that will serve as its European hub. The 8,000-sqm warehouse, located at the Brucargo logistics zone, has first line access and will offer high-end services

such as an integrated IT platform to operated by different airlines. With enable on-the-spot traceability. the new warehouse, the Chinese firm is looking to intensify its activities Hongyuan Group has been operating and hire more people at the air hub. at Brussels Airport since October It also plans to operate its own airline of last year with chartered flights starting next year.

Hong Kong airport staff required to get 3rd jab Hong Kong’s airport authority urged staff under the targeted groups to receive the third jab as soon as possible. The third dose of vaccine should be administered at least six months after the second dose. HKIA said all airport staff belonging to the

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targeted groups have received their second dose and are required to receive the third dose no later than 30 April 2022.

The targeted groups include those handling high-risk cargo or having unavoidable close range contact with passengers and crew. These include airline and ground agent staff, ramp coordinators, inflight catering coordinators, cargo loading staff, as well as cabin and lavatory cleaners.

NEWS - CARGO HANDLING Eva Air extends WFS cargo contract in France Worldwide Flight Services (WFS) has won a new three-year contract to provide cargo handling, cargo towing and trucking services for EVA Air in France.

Gaulle Airport to Taipei, with additional frequencies expected during the term of this extended contract. EVA Air, a customer of WFS in France since November 1993, has traffic rights for daily Paris-Taipei services.

EVA Air uses WFS’ regional transport services in France to feed cargo to its flights ex Paris CDG. The cargo handler operates over 100,000 sqm of warehouse capacity, including The Taiwanese airline currently a dedicated pharma centre for operates three Boeing 777 and 787 temperature-sensitive healthcare and flights per week from Paris Charles de life science shipments.

New Hong Kong carrier taps CASL as ground handler China Aircraft Services Limited (CASL) has been selected by Hong Kong’s newest airline operator Greater Bay Airlines to provide line maintenance and ground handling will also be provided to the airline two Boeing 737-800 passenger services at Hong Kong International to release aircraft into service for its aircraft. The new airline will offer passenger and air freight services entire Boeing 737-800 fleet.

Airport for its entire fleet. to provide better connectivity to CASL will provide 24/7 aircraft line Greater Bay Airlines plans to have the Guangdong-Hong Kong-Macao maintenance support, including seven of the narrowbody type in region. Applications are underway to transit services, scheduled checks service by 2022 and more than 30 by operate a total of 104 destinations in and ground support equipment 2026, with plans to start operations China and the rest of Asia, the airline services. Riding engineer services in the fourth quarter this year with noted on its website.

SATS’ Kerry Mok to become next president, CEO Kerry Mok Tee Heong will succeed Alex Hungate as the next president and chief executive of SATS Ltd with effect from 15 December 2021, the board of directors announced in an email to customers. Mr Mok joined SATS in June 2018 as the chief executive officer of Food Solutions. Prior to this, he held various leadership positions, including CEO of YCH Group, acting chief executive officer and chief operating officer of Goodpack Limited, as well as senior roles at Accenture and DHL.

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NEWS - LOGISTICS Kerry Logistics adds air freight capacity in Asia from Macau Kerry Logistics Network is strengthening its partnership with Malaysian cargo airline My Jet Xpress Airlines to offer air freight charter options within Asia. Macau International Airport (IATA code: MCM) was chosen as the main transit

hub after the two first introduced the service in March this year to provide freight capacity from Macau to East Malaysia and Indonesia for one of Kerry’s ecommerce customers.

The cargo charter operator said it recently purchased two Boeing 737800F worth RM40 million (around US$9.7 million) to complement its existing fleet of three Boeing 737-300Fs (almost 35 years) and one Boeing 737-400F (around 28 years). The two plan to expand their partnership with the introduction

JD Logistics takes on ecommerce with 100 planes by 2030

Cainiao to setup smart warehouse network in Southeast Asia

JD Logistics chief Yui Yu, told Bloomberg in an interview that the ecommerce logistics player will form an air cargo company, with plans to operate no less than 100 planes by 2030. Yu said the company has been recently approved by Chinese authorities, with plans to purchase also factor in new and niche logistics requirements, including cold chain management and green logistics.

Cainiao Network recently launched its

e-commerce fulfillment hub at KLIA, featuring a faster customs clearance process which it co-developed with Malaysia’s customs.

Through these cHubs, Cainiao will offer fulfillment and sorting for local deliveries, import and export for B2B and B2C businesses, smart supply chain management, and smart logistics technology, such as IoT, automation and warehouse management system or WMS. It will

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or lease planes for cargo use.

The e-commerce giant is currently stepping up overseas investment in its warehouse network and hightech logistics centres in China’s main trading partners. It now operates air cargo routes from Shenzhen to Bangkok, Nanjing to Los Angeles, Shanghai to New York and Hefei to London. The company also operates nearly a thousand cross-border transportation routes by sea, railway and trucks, with warehouses in the UK, Germany, the Netherlands, Australia and the Middle East.

Cainiao Network plans to establish its own smart warehouse network in Southeast Asia, including Vietnam, Indonesia, Malaysia and Singapore.

These Cainiao hubs will cover a total land area close to 2.5 million sqm and will support local enterprises.

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of scheduled services from Kuala Lumpur and Shenzhen to destinations within Southeast Asia and the Indian subcontinent.

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NEWS - FREIGHT FORWARDERS AirAsia reinforces regional ‘cargo play’ with first 737-800F Airasia logistics venture Teleport is bolstering its position as a regional player in cargo and logistics with the launch of a dedicated 737-800 freighter sporting unique livery design.

Stationed in Bangkok and to be operated by K-Mile Asia, the aircraft will service key markets including Hong Kong, Shanghai, Chennai, Mumbai and other destinations from Thailand,

CEVA Logistics receives lithium batt certification

connecting long-haul markets to regulations, including lithium batteries, Southeast Asia through containerised the company noted. Teleport chief Pete Chareonwongsak said the new addition capacity. will allow the company to shift from a The new freighter can accommodate pure air freight logistics provider to a dangerous goods items as per IATA complete multi-modal operator.

certifications for additional locations in Asia, Europe and the Americas. It will also offer contract logistics and freight services in air, ground or ocean transport.for customers in the battery secure life cycle.

automotive industry, Ceva works with 14 of the 15 largest original equipment manufacturers to handle new electric vehicle batteries.

The

forwarder

plans

to

CEVA Logistics is reassuring clients in its ability to transport lithium batteries as it became the first logistics player to receive IATA’s new CEIV Lithium Battery certification for its stations in Hong Kong and Amsterdam.

The company teamed up with IATA to support the development of the new certification programme given its experience in transporting batteries of all types and sizes. In the

Shipping giant Maersk beefs up air freight operations

well known for its air freight offering.

Maersk is set to make a bigger presence in the air cargo industry after the announcement of its intended acquisition, valued at US$644m, of Senator International, a family-owned German forwarder

On the pipeline are three leased B767-300 cargo planes, scheduled to start service from 2022, and a firm commitment for two fresh B777 freighters, which will be deployed by 2024.

The Danish shipping giant is expanding its air network and will be adding cargo planes to its fleet, which will be operated by Maersk’s air cargo subsidiary Star Air.

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Air cargo takes spotlight at 8th Payload Asia Awards On 1 October 2021, leading companies in air cargo and logistics gathered to recognise the winners of the prestigious Payload Asia Awards over a gala dinner celebration at the Fairmont Singapore Hotel.

More than 70 industry professionals attended the physical event, which was headlined by an online conference to discuss the state of air cargo with views and insights from renowned leaders and stalwarts in air cargo and logistics.

The Payload Asia Conference was held online and featured presentations by Brendan Sullivan, IATA’s head of cargo; Peyton Burnett, managing director of TAC Index; Henry Tay, Country Manager at Dimerco Express Singapore; Dr Suraj Nair, CTO and Founder of Speedcargo Technologies; and Benjamin Ong, CEO of Alliance 21 Group and 2nd Deputy Chairman at SAAA@Singapore.

In its 8th edition, the Payload Asia Awards recognises the industry leaders and forward thinkers in the air cargo and logistics supply chain who are staying at the forefront of the innovations and setting new benchmarks in service excellence.

This year’s winners were judged by an elite panel that included Brandon Fried, Executive Director, Air Forwarders Association; Brian Wu, Managing Director, BEL International; Cathy Roberson, Writer & Consultant, Logistics TI; Celine Hourcade, Founder and CEO, Change Horizon; Dr Paul Tsui, Managing Director, The Janel Group of Hong Kong; Emma Murray, CEO and

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founder, Meantime Communications; Frederic Horst, Managing Director, Cargo Facts Consulting; Glyn Hughes, Director General, TIACA; Paul Damkjaer, CEO and President, IFCBAA; Peyton Burnett, Managing Director, TAC Index; and Tulsi Nowlakha Mirchandaney, Managing Director, Blue Dart Aviation.

Global Express Provider of the Year DHL Express Asia Pacific General Cargo Sales Agent of the Year Ansync Global Cold Chain Service Provider of the Year dnata Ground Handler of the Year SATS IT Provider of the Year IBS Software Best e-Commerce Carrier Polar Air Cargo European Airport of the Year Liege Airport Asia Pacific Airport of the Year Changi International Airport Overall Carrier of the Year AirBridgeCargo Airlines

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ANSYNC GLOBAL General Cargo Sales Agent of the Year

Syed Hadi, Managing Director Director, Ansync Global

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With the recent recognition as Best Cargo Sales Agent during the recent Payload Awards, it has been a humbling and rewarding experience where we had started with a team of 2 to currently a strength of 20 over dynamic individuals, each playing a part in this success and growth of the company. We had started this path in 2015 and to reach this far has been a culmination of all our efforts, but most importantly this award goes out to all our supporting agents who have supported us over the years both locally and internationally. The past 6 years has been a tumultuous one where we have seen the lowest of lows and most recent COVID Airfreight era where it has been a difficult transition where we are seeing high rates unheard before till recent.

months. We definitely do not see the market slowing down in November and December but expecting it to increase in an aggressive trend moving into 2022.

With the pandemic we have been forced to adapt and be innovative in terms of garnering business and providing solutions to our customers. In our efforts to continually provide our customers with more options covering China and North Asia market – we are in the midst of finalising our discussions with a few carriers to operate into these regions in months to come. Concurrently, we are moving towards digitising our organisation to keep abreast with the changes in the world today. We are in the midst of procuring or leasing more aircrafts to meet the current demands of the market particularly focussing into the US and Europe region. As such, we have successfully carried out multiple charters of both PAX and CARGO aircrafts into these mentioned regions in the past year, and we foresee more opportunities to be expected in the coming

In the current aviation climate, we would strongly suggest to agents to generally work closely with their airline partners as it will have to be a 2-way communication to see where we as the service provider may work out varying solutions customised to meet the requirements. As how we have been working with our customers to continually do our best to accommodate and deliver. This would also not have been possible with the support from the carriers we represent regionally and globally. A special mention to the airlines who have been always supportive and the partnerships forged have been beneficial both ways. We always believe that communication is vital and being in sync with our customers is the best way to generate the results required.

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We are thus offering a multitude of solutions to our customers by offering charter availability weeks ahead in an attempt to provide our customers a chance to plan ahead to meet their varying deadlines. We do expect this trend to continue all through into 2022 and things may stabilise midyear where we could see rates and space normalizing to less erratic levels if and when the skies are available for easy travel once all the administrative restrictions are in place and we can have a standardised benchmark across the countries.

YOUR ONESTOP SHOP FOR YOUR ENDTOEND LOGISTICS SOLUTIONS

POLAR AIR CARGO e-Commerce Carrier of the Year

What are Polar’s expectations heading into peak season?

We expect demand to remain elevated heading into peak season. As a global air cargo leader, Polar is well positioned to deliver quality service to our valuable customers during the upcoming peak season and throughout the year. Polar’s winter schedule includes an increase in frequency of most of our routes, and we have continued to grow our trucking network which supports transportation further into markets and is especially meaningful offering alternate means of transportation while COVID-19 restrictions continue to impact operations at certain airports. With our modern, all-cargo fleet, coverage of major world markets, vast experience in air cargo, and our unshakeable commitment to quality, safety and customer service, Polar is uniquely positioned to help our customers succeed in today’s global air cargo markets.

How is the company looking to achieve growth in the near term?

Our goal is to become the most customer-centric air cargo carrier in the world, powered by an engaged, forward-thinking workforce that leverages digitization to exceed expectations, and engages in sustainable practices to minimize our impact on the environment.

Our strategy is supported by investments in our facilities and infrastructure, including warehouse expansions

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and technology and process improvements to meet the growing needs of our customers. We have also made investments in tools for cold chain management to further support perishable shipments including pharmaceuticals, and we have installed charging stations for electric vehicles which we continue to roll out across our stations. And, of course, increasing frequencies for most of our routes allows us opportunities to provide increased service to our customers.

What is the company’s outlook on air cargo and e-commerce?

Changes to consumers’ buying behaviors which started during the pandemic are not waning, and that demand is fueling the global growth of e-commerce.

As a global leader in the airfreight industry, Polar plays an essential role in supporting the ever-increasing global trade driven by e-commerce. In addition to the growth of online-only retailers, traditional brick-andmortar businesses have launched and expanded their online platforms to adapt to the emerging demand.

Polar is there delivering value for e-commerce customers every day. With our efficient widebody allBoeing fleet and extensive global network accessing major e-commerce cargo gateways, Polar provides high quality service and time definite transportation of e-commerce shipments with unmatched reliability.

LIEGE AIRPORT European Airport of the Year

Frédéric Jacquet, CEO of Liege Airport

How does it feel to win the European Airport of the Year for two years in a row?

Recognition and appreciation from the industry makes us very proud and motivates us to push forward, onward and upward. Winning the Award two years in a row confirms our efforts and the direction we are going.

We would like to thank the organizers, the colleagues in the industry, and every single person contributing to the success of Liege Airport Cargo community every day.

What are the main goals for the airport heading into next year?

Our first goal would be to win the Award a third time in a row. Joking aside, it would mean we would be recognized again for doing things right at LGG. We want to keep working hard combining experience and innovation to hold up and improve the quality of the services, despite the fast growth and continuous high level of cargo throughput.

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Where do you see more investments pouring in within the air cargo supply chain?

On an airport level, a lot of investments need to go in infrastructure, both physical and digital, to adapt to the requirements of the air cargo supply chain. Investments are needed to catch up with the changes, and hopefully anticipate future needs. Important as well, as less visible, we need a lot of investment into people, young and old, to attract them to our industry and keep them there, bringing with them skills and enthusiasm.

What are the key trends that will ultimately shape the future for air cargo?

The industry, as the global economy, needs to find a balance between economic growth and sustainability.

The momentum is there, a lot of initiatives are already in place in all parts of the logistics chain. I hope we can continue this drive, learn from each other, and strive for a sustainable future.

SATS Ground Handler of the Year operational systems to provide real-time visibility of ground activities for collaborative decision-making. This would improve hub handling and connectivity, thereby reducing cost of disruption for airlines.

SATS is also collaborating with Ascent Solutions to roll out Smart Air Waybill Track & Trace Solution (Smart AWB) which is a new and improved means of tagging, tracking, and tracing air cargo moving through the supply chain using a blend of different loT technologies.

Users can subsequently view their cargo movements over a cloud-based platform..

Bob Chi, Chief Operating Officer (Gateway Services) at SATS Ltd.

How does it feel to have won the Ground Handler of the Year at this year’s Payload Asia Awards?

This award is a testament of the hard work attributed by our people on the ground. More importantly, as we are now operating under a pandemic environment, this further demonstrates SATS team’s resilience through the spirit of self-determination and adaptability to thrive and adopt new technologies to enhance services despite the pandemic. Our sincere appreciation to our partners for their vote of confidence and unwavering support during this challenging period.

What new technologies are we likely to see at cargo terminals within the next 3-5 years?

The use of more AI-enabled platforms and autonomous vehicles will be transforming the cargo industry in the near future. SATS is contributing decades of operational know-how and expertise to explore opportunities to optimize the cargo operations process flow.

In 2020, SATS Cargo launched COSYS+, a cloud-based cargo terminal handling and management system which was designed to meet the challenges of handling cargo in the most efficient ways and offer better traceability to the air cargo ecosystem. It is capable of connecting different stations, allowing shipment data to be transferred across the upline and downline stations using mobile devices.

Transforming the concept of station performance monitoring, SATS has implemented a Digital Control Tower platform, which integrates data from across

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SATS is also a key player in implementation of IATA e-AWB and e-Freight initiative for cargo processes as part of our commitment to become a 100% paperless hub by 2030. This not only improves operational efficiency, but also allows us to better manage and reduce our environmental footprint.

Which trends do you think will have a positive impact on the flow of air cargo in and out of Singapore?

Looking ahead, shippers and businesses are likely to see strong demand at the end of this year when the peak season starts. Cargo remains the most resilient part of our business, driven by eCommerce and the increased focus on health post-pandemic, which includes handling for cold-chain handling of vaccines, medical supplies, and fresh food. SATS has been investing in specialised handling capabilities and facilities such as perishable handling, pharmaceutical handling, and eCommerce sortation. We will continue to build these capabilities and facilities in major air hubs across Asia, and provide high-quality handling services so that airlines, freight forwarders, and shippers can be assured of consistent high standards.

What are you looking forward to at the next Payload Asia awards?

We look forward to seeing more best-in-class solutions and technologies from our industry peers and will continue to uphold excellence in service standards.

Hopefully, international borders will fully open soon.

Meanwhile, we will continue to collaborate with industry stakeholders to facilitate the gradual reopening of travel across our network.

Asia’s Leading Provider of Gateway Services

At SATS, we adopt a technology-driven, people-led approach towards enhancing digital connectivity to boost operational efficiency and create value for our customers.

Fulfilling our purpose to feed and connect communities, SATS is delighting customers in 55 locations and 14 countries across the Asia Pacific, UK and the Middle East.

Find out how we feed and connect communities at sats.com.sg

CHANGI AIRPORT Asia Pacific Airport of the Year accelerate digital transformation efforts by creating an environment and culture to share data in order to achieve greater supply chain visibility and efficiency, through analytics and insights.

Jaisey Yip, General Manager for Cargo and Logistics Development

Can you describe to us what the awards mean for Changi Airport?

The award is an affirmation by the industry of the hard work and commitment that the Changi air cargo community has put in over the past year to keep air cargo flying and global supply chains open. But we cannot rest on our laurels. With the fast-evolving supply chains, it is more imperative than ever for us to collaborate more closely to build post-pandemic resilience for the air cargo hub.

How is the airport gearing up heading into air cargo’s peak season?

Pre-covid, the year-end period is usually regarded as the peak season for air cargo due to inventory restocking for festive seasons and massive online shopping events.

Based on IATA statistics, the air cargo market has been outpacing 2019-levels since late last year. One might say that the air cargo industry has been experiencing ‘peak season’ throughout the past year.

With the efforts to increase our cargo capacity and strong cargo demand, Changi’s air cargo traffic has progressively recovered, with airfreight throughput in the month of September 2021 surpassing 2019’s levels. More recently, Singapore has announced a series of Vaccinated Travel Lanes, which have led to more passenger flights. The increase in bellyhold cargo capacity and connectivity are timely to help manage the increased airfreight demand during the peak season.

How do you see industry collaboration evolving post-pandemic?

Air cargo communities now face greater pressure to

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The above are the key objectives of the Changi Air Cargo Community System (ACCS), introduced by Changi Airport in 2020 as an open ecosystem of applications underpinned by an information-sharing platform that aggregates data from all parties involved in the cargo handling process. One of the first few use cases 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. With reduced truck waiting times, it further supports Changi Airport’s sustainability efforts to reduce carbon dioxide emissions.

Community building and aligning all stakeholders to a common vision is by no means an easy feat. It requires buy-in from organisations to transit from legacy processes and relationships, and time to build trust and deliver value. However, the air cargo industry is beginning to see the benefits of community collaboration in this increasingly dynamic business environment. Presently, there are right technologies and standards in place that enable information-sharing in a safe and compliant manner.

Where do you see more investments pouring in within the air cargo supply chain?

Cross-border e-commerce today accounts for about 20% of global air cargo, and the share of e-commerce will only continue to grow, giving rise to the need for the industry to transform to better handle the shipments at piece level.

Across the air cargo supply chain, we anticipate more investments in both digital infrastructure (platform to provide shipment visibility), physical infrastructure (modern warehouses) and automation to cater to fast e-commerce growth. Airports would have a major role to play, bringing their air cargo communities together to work collectively as an ecosystem to harness technology and innovation, and build capabilities to meet e-commerce’s increasing needs.

2021 Payload Asia Awards Asia Pacific Airport of the Year Thank you for the strong vote of confidence and support.

We would like to express deepest appreciation to our Changi air cargo community for their efforts and contributions towards building resilience in our air aviation hub.

changiairport.com/cargo

EVENTS

ALMAC 2021 attracted over 11,-00 viewers from some 60 countries.

Hong Kong gathers leaders to discuss future with smart air cargo at ALMAC 2021 Air cargo conversations and insights were the kickstarter at the recently concluded Asian Logistics, Maritime and Aviation Conference held on 2 and 3 November at the Hong Kong Convention and Exhibition Centre.

Sixty-three industry experts and leaders shared their insights at close to 30 sessions at the two-day ‘hybrid’ conference, attracting more than 11,200 viewers from some 60 countries and regions. Participants from Hong Kong, Mainland China, Mexico, Nigeria and Romania witnessed first-hand the networking opportunities presented by the event In the air cargo forum, IATA cargo head Brendan Sullivan joined Mark Slade, managing director forDHL Global Forwarding in Hong Kong & Macau, Yvonne Ho, General Manager, Hong Kong & Macau at IATA; and Victor Mok, chairman and CEO of Asset Service Platform, GLP China shared their insights on air cargo digitalisation development trends and the impact of innovation.

Sullivan sees air cargo demand to

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continue upward, led by strong consumer demand in the US, given the supply chain challenges on both the manufacturing side and in the US, which is seeing congestion at ports throughout the country.

past,” he added.

As part of the panel, DHL’s Slade claimed that the bulk of supply chain disruptions were not from direct suppliers but from second- and third-tier suppliers, introducing the company’s latest “Air cargo continues to rise and is analytical tool to help identify risks with trending above the rate of overall trade, suppliers. so air cargo revenues are expected to be still close to one third of airline operating An earlier forum involving Kaiser Lam revenues. This is up significantly from from US-based forwarder Expeditors the previous average of 10% to 15% International and Cathay Pacific’s growth,” Sullivan said.

Frosti Lau, representing liaison group for air cargo carriers at HKIA, touched For Mok, cross-border e-commerce has upon Hong Kong’s role and unique greatly accelerated the need to digitalise opportunities for aviation and logistics with Chinese logistics providers in the region with the development of implementing digital solutions over the the Greater Bay Area. last 5 years to enhance transparency and safety of cargo movements.

Organised by the Hong Kong Trade Development Council or HKTDC, the “Digitalisation is a big word, but it doesn’t ALMAC event hosted satellite venues mean just moving things like processes in Chengdu, Chongqing, Guangzhou, from paper to online platforms. That Wuhan and Hamburg.

Online is only the first small step,” Mr Mok roundtable meetings also connected explained. “The key is how you optimise participants from Belgium, France, the processes, using technology and Germany, Italy and Luxembourg with data to improve the processes and industry players from Hong Kong and therefore efficiency and transparency, Mainland China, to discuss new market to make better decisions than in the trends.

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EVENTS

IATA’s head of cargo, Brendan Sullivan, with FIATA’s Stephan Graber and TIACA’s Glyn Hughes

IATA and main trade associations make their pact at WCS 2021 The closing plenary at the World Cargo Symposium in Dublin saw IATA, FIATA and TIACA talk about taking a more active role towards sustainability and working together to put air cargo at the forefront.

is expected to be the next big driver, particularly once we settle to a postCovid new normal. “I think we’re already seeing it in the number of shipper tenders because the consumer base has matured in a way as well. They are not only looking at the environmental Representing the forwarders, Dr impact but what we are doing to create Stephan Graber from FIATA, said that a diverse, inclusive workforce.” the air cargo and logistics industry is at a critical momentum that is not expected Working together to last long, which makes it the right With all this in mind, Graber said that time to advance sustainability objectives, this is a unique moment for the industry including the use of digitalisation through where there is better visibility and visibility and reducing inefficiencies. better understanding from authorities, Graber said that FIATA is gathering regulators and governments on what the right information and resources cargo is and how it works. to inform its members of the available tools and technology that can help the ‘We need to work together, the whole industry tackle this immense challenge. industry, to use this momentum to bring up the changes that this industry has He said that freight forwarders, been needing for very long,’ Graber said. particularly small and medium actors who may not have dedicated resources “There will always be different standards. internally, can expect the group to tell I don’t believe that we will have one world them the best practices, what’s coming with one standard. What’s important is into the market, the new tools and how to have interconnected systems where to handle them. the data can be exchanged between different systems and standards, which For TIACA’s Glyn Hughes, sustainability will simplify the efficiency of the supply goes way beyond the environment and chain.”

Valuing air cargo Despite how the pandemic put air cargo in the forefront, the panel agreed that air cargo still hasn’t quite secured the attention it deserves. In a recent sitdown with ICAO’s ministers, Glyn cited how tourism dominated much of the commentary, which doesn’t quite sit well when you think about the contribution that air cargo has made to economies.

In 2019, he explained, exports by air contributed eight times more compared to inbound tourism globally at US$6.4 trillion, and last year 20 times more.

Looking to highlight the efforts of the industry, Glyn noted that TIACA’s sustainability awards seeks to inspire other stakeholders to do the same for people, planet and prosperity. “This industry has performed incredibly well but not necessarily done a great job of letting everybody know. It has been very humble.”

‘We need to make them aware of the true facts that air cargo brings. In general terms, aviation has been too easily finger pointed and yet it does so much good work that we definitely need to get that message across louder and broader.

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C-SUITE

DHL’s Kelvin Leung on supply chains, technology and Asia Pacific When Payload Asia first talked to DHL Global Forwarding 5 months ago in August, all eyes were on the inevitable supply chain disruptions that we have now grown accustomed to. Ever Green was just recently ‘unstuck’ from the Suez Canal, a relief to the dozens of ships carrying billions of dollars’ worth of cargo who had to wait to enter the waterway.

A punch in the gut to the shipping industry meant air cargo had to swoop in and carry the slack to deliver on time, whilst shippers and manufacturers bore the brunt of having to find a way to meet customer demand.

choice. This was already apparent prior to Covd-19 and tariff discussions as we had observed a number of companies moving their sourcing and production to Southeast Asian markets, such as Vietnam and Thailand, to capitalize on “If there is anything the last two years has lower operating or labor costs.” demonstrated, resilience is key in a wellstructured supply chain. Multinational Staying agile firms have been re-assessing their Not downplaying the impact of Covid-19 supply chain networks to mitigate risks on freight mode options, Leung said like the US-China trade dispute and the current air and sea freight capacity natural disasters by diversifying their crunch has become a major concern supply chain reliance on China. for DHL’s customers. He said agility has become a key factor to manage Leung said that this supply chain complex supply chains.

Resilience: Beyond China+1 disruption witnessed over the past year For DHL GF’s Asia Pacific chief, Kelvin has fueled discussions on a ‘China + 1’ Leung suggested that supply chains can or a ‘beyond China+1’ approach. Many be designed to host multiple inventory companies who have become reliant hubs as opposed to a major centralized Beyond geography and on the ‘world’s factory’, he described, one, and companies can adopt internal experienced first hand during the decision processes that will allow them finding the sweet spot pandemic the risks of putting all their to react swiftly. between a ‘just in time’ and a eggs in one basket. ‘just in case’ inventory model, “The infrastructural support within companies have increasingly “For companies seeking a secondary the markets under consideration relied on increased visibility production base, Southeast Asia has is as important as the country’s with the help of technology. emerged as a popular destination of manufacturing capabilities, as is its

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Leung, such incidents like the Suez Canal blockage may immediately spring to mind when discussing supply chain disruptions, but they are not that uncommon.

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C-SUITE business contingency management strategies and ability to react promptly towards recovery,” Leung noted.

Leung said DHL customers have been open to multimodal options to manage the sea/air congestion. “Our rail solutions in China have seen a healthy pick up as customers seek capacity to send things to Europe and we have observed an uptick in customers using road freight services across Southeast Asia.”

Road and rail freight, he described, have been reliable alternative modes for some of DHL’s customers who previously relied on air and ocean freight. “We are seeing them gain traction and are optimistic about their growth in Asia Pacific,” he noted.

Digital visibility Amidst supply chain disruptions and labor shortages due to work disruptions, digitalisation has been a key enabler for companies trying to carbon emissions, and other relevant reduce any uncertainty, with new tools shipment data. that give them an early head start to crisis management.

A year later, it expanded the reach of the new tool—from eight countries to 62 “Beyond geography and finding the countries—and launched new features sweet spot between a ‘just in time’ and functionalities, including a ‘save and and a ‘just in case’ inventory model, edit’ option and new services such as companies have increasingly relied myDHLi Reports to increase shipment on increased visibility with the help of transparency. Road freight customers technology,” Leung said. were also added to the platform.

In May of last year, DHL Global Forwarding launched its integrated online platform myDHLi to provide full shipment visibility and control in one platform with transparent management of freight rates, offers, transport modes,

Because of this the forwarding unit was able to operate remotely and digitally without disruption amidst pandemicrelated lockdowns in many markets.

This led to online bookings and sales jumping more than 50 percent (56

percent) in Q1 of this year compared to the same period a year ago.

Asia Pacific outlook As far as prospects are concerned, Leung sees an upward trend in trade for Asia Pacific post-Covid. He noted that the introduction of customs systems like the ASEAN Customs Transit System, and trade agreements like the RCEP can only be beneficial to countries, businesses and consumers.

“A significant development on RCEP is that it will come into force in January next year, having reached the threshold of entry. This is the world’s largest trade deal, covering a market of 2.2 billion people and $26.2 trillion of global output. The partnership will create a trade grouping that covers about 30 percent of the world’s population, as well as the global economy.

Countries that have ratified the deal include Brunei, Cambodia, Laos, Singapore, Thailand, Vietnam, China and Japan. Australia and New Zealand are the latest countries that have ratified the agreement.

Kelvin Leung, Asia Pacific chief at DHL Global Forwarding

“It is especially interesting to observe how the current tension between US and China will be addressed in terms of trade under RCEP,” Leung noted.

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FEATURE

Sealed Air: From Bubble Wrap to the new age of smart, sustainable packaging Who would have thought that what was once invented as a 3-D wallpaper would find its way to revolutionize packaging? The bubble wrap, as we all have popped more than once when we were kids, has come a long way from its heavy industry use to everyday packaging for perishable food and for high-value and general e-commerce shipments.

For Sealed Air, the past year has put the company in a good position to help its customers turn these challenges into opportunities, reflecting a solid business performance, as Onat Bayraktar, vice president at Sealed Air Asia, puts it.

looking not only at their packaging but their packaging processes as well.

“I think we have been in a very strong position to help our customers turn these challenges into opportunities in this period, especially by optimizing and minimizing waste in their operations, decreasing their pack times, reducing The company is on a mission to protect freight costs, optimizing labor, and any shipment during long hours of maximizing capacity and throughput,” transport---whether it be the packed he noted. salad at your local deli or the bubblewrapped gadget that can’t wait to be unboxed or medical shipment that needs to be kept cold.

As one of the pioneers in the packaging business, Sealed Air has certainly seen how the market has changed over the years, particularly over the last year in which the whole dynamic of buying and purchasing online has certainly From bubble wrap, the company has accelerated. become a leader in creating solutions like vacuum insulated panels that protect shipments for the healthcare industry and inventing unique The material that we packaging formats for the food service choose needs to be the and retail businesses.

right product to protect.

If it is not meeting that criteria, we cannot talk about sustainability or being eco-conscious.

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New age of protective packaging Onat Bayraktar, vice president at Sealed Air Asia, believes that amidst new packaging demands and requirements, industries are now re-

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Onat Bayraktar, vice president of Sealed Air Asia

FEATURE Automation is where all industries are heading to, not only to address the challenges such as labor scarcity but also keeping people out of harm’s way. talk about sustainability or being ecoconscious. This means the use of better performing packaging products to reduce the excessive packaging going into the market while providing improved protection.

According to Onat, e-commerce acceleration, fulfilment complexities, automated operations, changing consumer behaviours and sustainability are just some of the trends that will continue to have an impact on the business and the industry.

Even before the pandemic Onat said that automation was already an important focus for Sealed Air. In 2019, the company acquired Automated Packaging Systems to further boost its know-how in smart packaging and automation systems.

“Automation is where all industries are heading to, not only to address the challenges such as labor scarcity but also keeping people out of harm’s way.

It’s been a very interesting acquisition for us, which really became much more meaningful with the dynamics of the pandemic,” he noted.

Sustainability With the pandemic accelerating the growth of e-commerce in China and elsewhere, the demand for packaging and bubble wrap has certainly spiked up. The waste that comes with all that packaging, well that’s a whole different story. For Sealed Air, sustainability has always been a business imperative.

Onat says every new product that the company puts out follows a sustainability criteria—whether it’s about recyclability, recycled content,

or the total carbon footprint that it will have on its own, or whether it will enable a lower carbon footprint or resource reduction for its customers.

This year the company announced the ambitious goal of becoming carbon neutral by 2040, a decade earlier than other companies who have expressed the same environmental commitment.

Earlier in 2018 Sealed Air pledged that by 2025 it will design 100 percent of packaging solutions to be recyclable or reusable and to incorporate an average of 50 percent recycled or renewable content into solutions, of which 60 percent is post-consumer recycled content.

“By making something recyclable doesn’t mean that it’s going to be recycled. We need to work with partners to make that infrastructure happen because this is going to be the key solution for sustainability.

Circularity or the circular economy is the answer.”

Finding a balance Onat explained that whilst the total carbon footprint of packaging is a mere fraction compared to that of any product, only by tailor fitting the right packaging material can the company ensure the protection of any high-value item during transport and reduce the amount of waste.

“The material that we choose needs to be the right product to protect. If it is not meeting that criteria, we cannot

“I would say we’re a little bit product or material agnostic. We see ourselves more as the tailors to find the best fit in terms of sustainability and in terms of total cost of ownership. When we look at sustainability, we look across the entire supply chain and not just parts of it .To determine the environmental impact it needs to strike a balance between protection and waste and between energy usage and being ‘environment friendly.’

Smart packaging Realising the power of harnessing data, Sealed Air said it is investing in creating an ecosystem for smart packaging, one that tells the digital story of every shipment to add more value and ensure visibility across the supply chain.

“It’s not just about this printing [technology] because it’s been done.

QR codes are not a new thing, but what about the scanning technology behind that? How do you collect that information? How can you put this into a database? Most importantly, what kind of analytics you create out of it is as important as the packaging supply,” Onat continued.

“With a whole lot more data intelligence, there’s a great opportunity to use the information to help businesses make better decisions and engage with their customers. That’s what smart packaging really is: it’s not necessarily a brand owner telling the story of a package; it’s related to the entire value chain, it helps to ensure the brand integrity and deliver consumer engagement.”

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FAAPA UPDATES

HAFFA leads Hong Kong forwarders to form logistics alliance with Zhuhai and Macau HAFFA chairman Gary Lau recently spoke at an online summit and exchanged ideas with other industry trade groups from Beijing, Zhuhai, Macau and Hong Kong. The Hong Kong-Zhuhai-Macau Logistics Alliance aims to deepen collaborations and accelerate the development of freight and logistics in the region. The online summit was held on 19 October.

Customs officials from Hong Kong and Zhuhai, Peking University scholar, and ad senior representative of the Logistics an Supply Chain MultiTech (LSCM) R&D Centre also gave presentations on relevant government policies, facilitation measures and initiatives for the freight and logistics industry.

Signatory parties of the alliance from Hong Kong include Hong Kong Association of Freight Forwarding and Logistics (HAFFA), The Hong Kong Shippers’ Council (HKSC), The Chamber of Hong Kong Logistics Industry

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(CHKLI) and Hong Kong Sea Transport southern Chinese port city of Zhuhai. and Logistics Association (HKSTLA).

Joining the alliance from Macau Meanwhile, Zhuhai Port Association were the International Logistics and (ZHPA), the Zhuhai Communications Forwarding Association of Macau & Transportation Association (ZHCTA) (ILFAM) and the Macau Air Freight and the Zhuhai Chamber of Commerce Forwarding (Logistics) Association of Logistics & Purchasing (ZCCLP) (MAFFA). formed the representation for the

Gary Lau, HAFFA chairman

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SEE YOU AT THE 9TH EDITION IN 2022

The 9th Edition of the Payload Asia Awards is coming in 2022 Interested in being a part of celebrating the Air Cargo Industry?

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