Payload Asia | October-December 2023

AIR CARGO EXCELLENCE ELEVATING TRUST THROUGH

From temperature-sensitive pharmaceuticals to time-sensitive e-commerce parcels, Changi can do it all. Within a 24/7 Free Trade Zone, Changi has dedicated bays to accommodate the largest freighter planes and state-of-the-art facilities to handle even the most unique types of cargo. Learn about how Changi Airport continues to meet the rapidly changing logistical demands of your business at changiairport.com/cargo today.

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EDITORIAL/PUBLISHER

Keen Whye Lee Publisher publisher@harvest-info.com

Giullian Navarra PLA Editor editor-pla@harvest-info.com

OPERATIONS

Mari Vergara Head of Operations manager-ph@harvest-info.com

MARKETING

Lali Singson Marketing Manager mktg@harvest-info.com

SALES

Simon Lee

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

Chua Chew Huat Asia Pacific sales-sg@harvest-info.com

Matt Weidner North America mtw@weidcom.com

TECHNICAL SUPPORT MJ Magsalin tech@harvest-info.com

GRAPHIC LAYOUT

Tyrone De Los Santos ronds.creatives@gmail.com

Arjay Alivia

EDITOR’S NOTE

Dear readers,

In this issue, we travel to Singapore to take a glimpse at the different industry events held in the last quarter of 2023, as the city state hosted some of renowned conferences and summits from across the globe to talk about aviation, air transport and everything in between.

With sustainability as one of the main discussion topics across the air transport industry, Asia Pacific is slowly catching up with the world’s top regions in adopting lucrative measures to support ambitious carbon reduction targets within the next two decades. Turn to page 18 to find out how the Association of Asia Pacific Airlines is leading the charge in promoting SAF use in the region and in urging suppliers to produce more of the alternate green fuel.

On page 20, we take a look at the 10th edition of the Payload Asia Awards held at Four Seasons Singapore on 27 October to relive the memorable moments and good times shared by the leading air cargo and logistics players in Southeast Asia and across the globe.

The globe-trotting doesn’t stop there and we continue our coverage with other important industry events held in Hong Kong, Dubai and the Caspian Sea. Flip to pages 22 to 24 and stay abreast with the annual and bi-annual gatherings for our beloved air cargo and logistics sector.

Of course this issue won’t be complete without the latest industry updates and stories from our newsmakers, including interviews with cargo.one and Cathay Pacific. Enjoy reading the pages from your laptop or mobile phone and let’s celebrate everyone’s remarkable achievements.

Giullian Navarra Chief Editor

Simon

Vietnam Airlines joins the Association of Asia Pacific Airlines

Vietnam Airlines is the latest member to join the Association of Asia Pacific Airlines (AAPA), as announced by a press release on 14 November, with immediate effect.

As part of the AAPA, Vietnam Airlines will participate in the Association’s meetings and joint activities, where members can stay updated and exchange information about the

trends in the aviation industry. Airline members also receive in-depth insights, forecasts, and advice from the group’s regular monthly distribution.

The AAPA’s membership now stands at 15 airlines, which include Air Astana, Air India, ANA, Bangkok Airways, Cathay Pacific, China Airlines, Eva Air, Garuda Indonesia, Japan Airlines, Malaysia Airlines, Philippine Airlines, Royal Brunei Airlines, Singapore Airlines, Thai Airways and Vietnam Airlines.

Teleport, VietJetAir Cargo team up in Southeast Asia

Teleport, the air logistics unit of Capital A, and VietJetAir Cargo have signed a memorandum of understanding (MoU) at the Air Cargo Southeast Asia 2023 held in November.

The partnership will enable Teleport and VietJetAir Cargo to mutually extend their networks, combining Teleport’s Southeast Asia air cargo network of over 80 destinations with VietJet’s global flight network.

Nelson Wu, managing director at Vietjet Air Cargo, believes the partnership will bolster the airline’s global supply chain capabilities. “We will be able to serve businesses in diversified areas and at quicker speeds, providing comprehensive logistics solutions to our customers worldwide. This especially empowers our businesses in Southeast Asia to engage in global trade with greater ease and confidence in the coming time.”

Oman Air set to operate its first dedicated freighter

Oman Air is set to operate its first dedicated cargo aircraft with the announced order and delivery of the airliner’s first 737-800 Boeing Converted Freighter (BCF). Oman

Air saw its cargo volume increase 42 percent during the first half of 2023, compared to the same period in 2022, driven primarily by more capacity across its passenger fleet.

The Muscat-based carrier said the arrival of the freighter conversion, completed at Taikoo (Shandong) Aircraft Engineering (STAECO) in China, will contribute to the growth of Oman’s air cargo logistics sector. The aircraft can carry up to 23.9 tonnes of freight and has a flight range of 3,750 kilometres, with up to 20 percent lower fuel use and CO2 emissions per tonne.

“The freighter will contribute to the growth of the air cargo logistics sector in Oman and beyond, will be based at our strategically located Muscat hub and will enhance our ability to connect East and West,” said the Middle East carrier.

Saudia Cargo gains CEIV Pharma certification

Saudia Cargo is bolstering its services for the healthcare and life sciences industry as the carrier achieved the Centre of Excellence for Independent Validators (CEIV) Pharma certification from IATA.

The airline, which started the certification process a year ago, said it has seen an increase in pharma-related shipments over the last four years and is looking to serve the expanding Middle East

pharmaceutical market with ‘topnotch’ products, whilst priotizing cargo safety and security.

“We’ve made the firm commitment to facilitate the leasing of the best temperature-controlled packaging options and unrivaled knowledge to guarantee secure and dependable pharmaceutical transportation in the rapidly expanding Middle East market,” stated Teddy Zebitz, Saudia Cargo chief.

Silk Way West Airlines’ first B777F takes off

Silk Way West Airlines is set to add more capacity to its cargo network with the arrival of its first Boeing 777 Freighter at the Heydar Aliyev International Airport in Baku (GYD) on 3 October. The airline is the newest operator of Boeing’s best-selling freighter, which also aligns with the carrier’s ambitions to implement greener, more fuel-efficient operations.

“This expansion of the fleet will open up opportunities for Silk Way West Airlines to boost the volume of flights and extend our reach to additional strategic destinations, reflecting the growing importance of our home base of Baku as a regional

and global transportation hub,” said Fadi Nahas, vice president of Silk Way West Airlines, Americas.

The airline also has the 777-8 Freighter in its order book and the arrival of the widebody freighter will enable Silk Way West to operate

long-haul cargo routes, with space for the transport of tall and outsized cargo loads. So far, more than 300 777Fs have been ordered since 2005. Boeing predicts the air cargo fleet across the globe to grow by over 60 percent over the next 2 decades.

Thai Airways extends partnership with CHAMP Cargosystems

Thai Airways has renewed its contract with CHAMP’s Traxon cargoHUB in a bid to continue streamlining its processes and support operational growth. The airline said the data exchange platform aligns with its high standards of service and enables improved supply chain quality and completeness whilst remaining up to date with the latest industry requirements.

Thai Airways benefits from being part of the largest air cargo community, with digital access to more than 4,000 freight forwarders and stakeholders

throughout the supply chain, via a single system regardless of data format or protocol. “With CHAMP’s solutions supporting us, we can offer

an effective, efficient and reliable data exchange,” said Mr. Chirachet Chanawiset, commercial head of cargo and mail at Thai Airways.

Hong Kong’s sea-air logistics park gets nod from stakeholders

Airport Authority Hong Kong (AAHK) has signed an agreement with Dongguan Port Group to establish a joint venture for the development of HKIA Dongguan Logistics Park, the world’s first sea-air intermodal transshipment connection between a logistics park and an airport’s airside.

The arrangement enables cargo security screening, palletisation and airline acceptance for export cargo from the Greater Bay Area to be completed upstream in Dongguan in compliance with Hong Kong’s air cargo regulations before shipping the cargo by secured vessels to Hong

Kong International Airport for direct uplift to overseas destinations as transshipments, and vice versa.

The new transshipment arrangement is expected to save 50 percent of the cost and one-third of the processing time, with autonomous guided vehicles (AGV) and customised containers to be introduced in the facilities. Stakeholders expect the annual handling capacity of the model to reach over one million tonnes of cargo upon completion of the first phase of development which spans an area of 20 hectares.

Istanbul Grand Airport taps Kale to deliver cargo community system

Kale Logistics Solution has been tasked to implement its airport cargo community system for Istanbul Grand Airport (İGA), marking the first time that a Turkish airport will digitalise the cargo data exchange.

The tech provider’s latest project, Airport Kargo Paydaş Platformu (KPP), is expected to drive electronic cargo data exchange in the local Turkish cargo community and will be implemented in collaboration with TroyNet. İGA wants to become a top regional transfer hub for the world’s

leading cargo companies, and the new system can help facilitate end-toend digitalisation that can enhance efficiency and streamline procedures for stakeholders at Istanbul’s cargo precinct.

Istanbul Airport has a cargo area of 1.4 million square metres and is expected to handle up to 5.5 million tonnes in capacity when all development phases are completed. FedEx in September announced plans to build an air transit facility at iGA Istanbul Airport (IST) by November 2024.

Construction starts at Brucargo Central with first five tenants

Brussels Airport is set to welcome new and long-time partners at the future redeveloped Brucargo Central once the modernised warehouse and office area is completed by 2025. Launched a year ago, the 83,500-sqm cargo area has begun construction

with the first piles laid for future tenants Nippon Express, Deny Cargo, Hazgo, EV Cargo and DSV.

Brussels Airport is allotting 70 million euros to redevelop the 83,500-sqm area, which saw the demolition of old

buildings. Plans for the layout of the roads and construction include three new state-of-the-art warehouses with a consolidated warehouse area of 34,200 square metres with adjacent offices, as well as a car park. Modernisation, innovation and sustainability will be the key elements of the new buildings, the air hub said.

DSV Sea & Air and Nippon Express buildings will occupy 12,000 and 10,000 square metres, respectively,with state-of-the-art facilities to provide handling and storage for key verticals like healthcare, perishables as well as general cargo.

dnata reveals new cooling technology in Singapore

dnata has successfully installed a new cooling technology in its facilities at Singapore Changi Airport, which is expected to save at least 650 metric tonnes of carbon and 1.5 million kwH of electricity per year.

dnata Singapore implemented the Cooling as a Service (CaaS), supplied by provider Kaer, in January 2022 to provide chilled water and air conditioning to its cargo, catering and support facilities. Under the CaaS model, the cooling systems serving the two facilities were retrofitted with high efficiency, low-global warming potential (GWP) technology.

Charles Galloway, dnata’s Regional CEO, airport operations Asia Pacific, is proud of the company’s early adoption of low-GWP refrigerants in Singapore, as dnata looks to make its operations even more efficient and sustainable. The new technology has resulted in a 54 percent reduction in energy consumption at its cargo base, and a 35 percent reduction at its catering and support offices. The technology also allows for realtime monitoring and reporting of service levels, as well as energy use and carbon emissions for ESG reporting.

Menzies Aviation wins key cargo contracts at London Heathrow

Menzies Aviation’s service-driven approach is seeing positive results as the airside services provider has renewed and secured several new key cargo contracts with airlines at London’s Heathrow Airport (LHR).

These include new contracts with Thai Airways Cargo and Royal Air Maroc Cargo, as well renewals with Middle East Airlines, Royal Jordanian

Airlines, Scandinavian Airlines Cargo and Tarom.

Among the new contracts, Menzies is set to deliver cargo handling and airside trucking services for Thai Airways. The contract, which includes 14 turns per week, will see local teams oversee the transport of more than 16,000 tonnes of vegetables and fresh fish from Thailand to the UK.

Jettainer, PACTL to open ULD leasing hub at Shanghai Pudong

Jettainer and Shanghai-based ground handler PACTL West have entered into a strategic cooperation agreement to establish a new hub for lease&fly ULD leasing service at Shanghai Pudong International Airport (PVG).

PACTL West, as the strategic cooperation partner, will be responsible for handling and storing the ULDs and ensuring the smooth operation of the new hub, whilst Jettainer’s Hong Kong office will take care of customer service and all sales activities for needs in the region. This is the fourth location for Jettainer’s lease&fly hub after Frankfurt, Abu Dhabi and Hong Kong.

“Airlines and forwarders are seeking ad-hoc, short-term and long-term ULD leasing solutions, often with the requirement to have ULDs directly available,” said Thomas Sonntag,

CEO at Jettainer. “The opening of our lease&fly hub in mainland China will add great flexibility to both new and existing customers and is another step in our expansion plans in Asia.”

Cainiao Network offers solution for FMCG supply chains

Cainiao has partnered with Chinese FMCG snack brand Bestore to manage its export needs to ensure compliance to local laws and regulations, as well as cost savings for unique order dispatches.

The new offerings consist of a goods labelling service and a consolidated B2B inventory and supplier management service. Cainiao will provide end-to-end support for the labelling of FMCG goods, from designing, production, to distribution of labels.

he company noted that its capabilities in streamlining inventory and supplier management for FMCG companies allow suppliers to route the goods to the warehouse for consolidation and labelling. Logistics needs for subsequent supply chain nodes, such as distribution, first mile, customs clearance, and line haul shipping, for exports can be aggregated. This will help FMCG companies to increase shipping efficiency and reduce costs by up to 25 percent by reducing the Less than Container Load (LCL) occurrences.

SingPost’s Australian unit eyes purchase of Border Express

Freight Management Holdings or FMH, a subsidiary of Singapore Post, has entered into a conditional sale and purchase agreement with the shareholders of Border Express, for a maximum purchase consideration of A$210 million, or approximately S$183 million.

Border Express is considered the 6th largest national transport and distribution services company in Australia with comprehensive freight connectivity, warehouses and

Scan Global Logistics enters South Korea

Scan Global Logistics is strengthening its market position and global presence as it enters South Korea

as a new market with the acquisition of long-term partner ENK Logistics. The acquisition, which will see

regional centres. It provides end-toend interstate logistics services with a network of 16 facilities, a fleet of over 700 vehicles, a team of 1,300 employees, and over 3,000 clients across industries, including large retail and consumer brands.

Upon completion, Border Express will join the transportation companies held under the FMH Group umbrella, which include GKR Transport, Niche Logistics, BagTrans, Formby Logistics and Spectrum Transport.

ENK operate under the SGL brand, aligns with the former’s strategy to establish its presence in the world’s largest economies, citing South Korea’s well-established position in the trade markets of Southeast Asia, with a business-friendly and efficient regulatory environment.

The birth of Scan Global Logistics South Korea marks yet another milestone in SGL´s Pacific region, which saw the acquisitions of Pioneer International Logistics (Australia) in 2020 and Orbis Global Logistics (New Zealand) in 2021. SGL now actively operates in 50 countries, almost three times more from 2016 when it had presence in 17.

GEODIS offers turnkey pharma logistics solution at Schiphol

Global logistics provider GEODIS officially started operations at its new 5500-sqm site in Amsterdam Airport Schiphol on 6 October, with a focus on providing services to the pharma and healthcare sectors.

The new location is next to the existing site and will expand the freight forwarder’s footprint in both sectors, which is already

well established with its contract logistics operations at GEODIS’ Venlo site.

The new Schiphol-Rijk cold chain facility is TAPA-A rated for air freight and holds the appropriate CEIV Pharma certification for handling goods in the 15-25 C and 2-8°C range. It will provide freight forwarding services as part of a worldwide cross-docking network for ambient and cold chain products.

DHL Supply Chain earmarks €350m for Southeast Asia network

DHL Supply Chain plans to invest 350 million euros in Southeast Asia over the next five years to expand its warehousing capacity, workforce and sustainability initiatives.

With this investment, the company plans to increase its current warehouse space in Southeast Asia by 25 percent. This is part of a series of strategic investments by DHL Supply Chain over the past year, which have already added up to 1.35 billion euros, which included investments in infrastructure, hiring and development, as well as automation, digitalization and sustainability in India, Latin America and Southeast Asia.

The company added that it will continue to develop its warehouse management systems (WMS) and introduce technology in selected markets, such as auto-stores, automated storage and retrieval systems for pallets and large goods, and automated guided vehicles.

Javier Bilbao, CEO, DHL Supply Chain Asia Pacific highlighted the upcoming fifth facility in Penang, otherwise called PLH5, which will feature stateof-the-art automated pallet storage and retrieval system and goods-toperson robotics technology to handle small parts picking.

U-Freight Logistics upgrades Hong Kong facility

U-Freight Logistics has completed the upgrade of its autonomous mobile robot (AMR) and intelligent racking system in its 20,000-sqft facility in Kwai Chung, one of five freight hubs in Hong Kong.

The company has added 30 picking robots at the automated facility, which will be used to move inventory shelves and pallets to the workstations, using a ‘ shelf-to-person’ solution powered by software provider Geek+. Powered by proprietary algorithms, the robotic retrieval system uses the fewest AMR picking robots possible to achieve maximum efficiency

while improving warehouse storage capabilities.

Combining these algorithms with the facility’s warehouse management system enables products to be stored and located based on the frequency of purchase. U-Freight explained the upgraded system would eliminate the need for operators to leave their stations, improving put away and picking accuracy and reducing labour intensity. It is also expected to maximize the throughput capacity, whilst enhancing operational efficiency and reducing the operational costs.

NEWS - FREIGHT FORWARDERS

WestJet, Flexport team up to link Canadian exports to Asia

WestJet Cargo and Flexport have teamed up to offer new airfreight solutions for Canadian exports into Asia. Under an agreement, WestJet Cargo will deliver cargo from Canada to Chicago O’Hare International Airport (ORD), where Flexport operates dedicated freighters from the US to key air freight hubs in Asia, including Incheon International Airport (ICN), Shanghai Pudong International Airport (PVG) and Hong Kong International Airport (HKG).

The partnership will initially prioritize the transportation of perishable goods, which include seafood from Halifax and the Maritime provinces, as well as seasonal cherries from Vancouver. Flexport’s solutions include tail-to-tail transfers at ORD to minimize transit times and preserve perishable cargo integrity.

WestJet Cargo and Flexport have been collaborating since July 2023 and will continue to explore opportunities to expand the agreement, to include specialized and high-value commodities, into additional airports in Asia and gateways at origin.

Kuehne+Nagel gears up for special air cargo verticals

Kuehne+Nagel is looking to enhance its services for key air cargo verticals as it introduced three new air charter connections between Asia, Europe and the Americas. The scheduled service, which started on October 23, will see the logistics operator deploy its B747-8 ‘Inspire’ freighter on two

additional weekly routings from Atlanta and Chicago to Amsterdam and from there to Taipei.

The B747-8 freighter will connect the three regions through around-theworld flights as part of its regular charter schedule, as Kuehne+Nagel

looks to serve key industries like healthcare, perishables and semiconductors with its own controlled capacity between Taiwan and the Benelux region.

On 20 October, Kuehne+Nagel unveiled a new logistics air hub at the Charles de Gaulle Airport in Paris to strengthen its healthcare logistics solutions in the region. The hub, which has 4,500 square metres of dedicated space for cold rooms and temperature-controlled zones, has a capacity to handle 300 air freight pallets a week and is expected to facilitate access to new markets in high tech, luxury, aerospace, industrial and automotive.

MSC Air Cargo launches Tokyo service from Malpensa

MSC Air Cargo has launched a weekly service on 7 October between Milan’s Malpensa airport and Tokyo using its Boeing 777-200 freighter, as the airline looks to support the transport for high-value Italian exports.

The widebody freighter, adorned with the MSC livery, originally landed at the Lombard airport from Liege Airport in Belgium before departing for Tokyo, Japan. The inaugural flight is part of a weekly service, which will operate every Friday from Malpensa, with a maximum payload capacity of

up to 100 tonnes. The new service will primarily focus on high-value Italian export products, including luxury fashion and accessories, destined for markets in North Asia.

MSC Air Cargo has been operational since late 2022 and is in the early stages of development. The air cargo operator said it plans to make significant investments to build and create more solutions for time-critical products, including pharmaceuticals, perishable goods, and automotive items.

DHL Express unveils newly expanded hub in Hong Kong

DHL Express has completed the expansion of its Central Asia Hub in Hong Kong for which it spent 562 million euros over the last 19 years with two phased developments in both 2008 and 2017. Given its location in Hong Kong, the hub is an important gateway to Asia and the rest of the world and today it handles close to 20 percent of the company’s global shipment volume.

With direct access to airside and landside, the newly expanded stateof-the-art facility, with double the total warehouse space at 49,500 square

metres, is currently the only dedicated and purpose-built air express cargo facility at Hong Kong International Airport with an automated material handling system and peak handling capacity of 125,000 shipments per hour. It currently handles over 200 dedicated flights per week.

DHL Express said that it expects to handle plus 50 percent of the current volume or up to 1.06 million tonnes per annum when operating at full capacity, six times the shipment volume of when the hub was first established in 2004.

FedEx speeds up Vietnam-Singapore service with B767F

FedEx Express is further enhancing its services between Vietnam and Singapore as well as the wider Asia, Middle East, Africa (AMEA) and Europe market, with the introduction of a new flight offering expedited delivery times.

The new service will use a dedicated B767 freighter starting October 31 to fly four times a week in the evenings from Ho Chi Minh City to Asia and Europe through the FedEx hub in Guangzhou, China. Exporters shipping from Southern Vietnam will benefit from faster transit times for shipments to Singapore and major

Asian markets in just one business day, and two business days to Europe.

FedE currently operates five flights to Asia, Europe, and the US, which include four daily morning services through the FedEx hub

in Singapore and the existing evening flight through the Guangzhou hub. The express operator has been supporting cross-border trade to and from Vietnam since it established operations in the country in 1994.

Cainiao, Saudia Cargo and WFS/SATS join forces

A somewhat-new partnership, which will commence in March next year, is looking to create a future business model for e-commerce logistics gateways at major air hubs, amidst looming demand driven by online shopping.

Saudia Cargo, Cainiao Network, and Worldwide Flight Services (a member of the SATS Group) have agreed to reinforce and increase their existing collaboration to focus on optimizing logistics processes by streamlining operations and adopting innovations. The initiative is in response to ‘escalating’ demand for high-quality logistics

operations in the cross-border e-commerce sector, particularly in the Middle East and European markets.

A key component of this collaboration will be an established dedicated area in the air cargo station of Cainiao Liege eHub in Belgium. Saudia Cargo has allotted significant exclusive capacity for Cainiao and

conducts high-frequency flights on the Hong Kong to Liege via Riyadh route. The airline has extended a contract with WFS/SATS for handling over 50,000 tonnes annually on flights connecting Liege and Riyadh.

The strategic collaboration between Saudia Cargo, Cainiao, and WFS/SATS will start on 1 March 2024.

Thai Vietjet on the air cargo spotlight

When it comes to Thailand’s domestic air cargo market, Thai Vietjet has a formidable share compared to its rivals thanks to the carrier’s extensive network in Southeast Asia and younger generation fleet. In this interview, Payload Asia talks to the airline to learn more about its regional cargo operations and outlook for the upcoming months.

Can you give us a background of your operations from Bangkok? Which regions do you connect, and in which markets are seeing growing demand for air cargo services?

Since its establishment in 2014, Thai Vietjet has been providing an exceptional cargo service to facilitate its partners from various industries. It places its focus on domestic cargo operations from its Bangkok Suvarnabhumi hub, especially from Bangkok to Chiang Mai, Hat Yai, and Chiang Rai, where the demands for cargo service have remained at a high level. Besides, it has been working to expand the operations to numerous destinations in Southeast Asia, including Singapore, Malaysia, and Vietnam, as well as the overall Asia-pacific region which includes Japan, and China.

During the pandemic when the normal operation of passenger transportation was interrupted. Thai Vietjet has adapted its passenger cabins on many of its aircraft into airfreight cabins, enabling the airline to increase the capacity in

cargo operation and was able to gain revenue even during the peak of the pandemic. The airline also opened for collaborations with many new partners and hosted an air cargo seminar to provide detailed information about its cargo operation and welcome new partners to be part of its business.

How would you describe the airfreight and logistics industry in Thailand? What are your plans to grow the business internationally?

In the post-pandemic era, the airfreight and logistics industry in Thailand has become more and more competitive. Thailand’s air cargo market has welcomed many new players to the challenging and dynamic industry,

For Thai Vietjet, our focus is to remain the stability of current cargo operation providing a stable schedule and on-time operation. We aim to expand our cargo network to many more destination and strive to provide the best cargo services to our customers and partners.

How important is the resumption of belly space in providing capacity for air shipments?

Belly freight space plays an important role in terms of revenue management for airlines that mainly operate commercial scheduled flights for passenger transportation. With belly freight, airlines can maximize its revenue by transporting

passengers in the cabin and goods in the belly simultaneously, resulting in the sufficient profit by providing two types of service at once. In addition, with the extensive flight network for passenger transportation, an airline can be benefited by expanding its cargo network to more destinations at the same time, providing more capacity by utilizing the limited resources and maximizing the revenue as much as possible.

What types of shipments does the airline transport? What can you say about the use of new tools like online booking platforms and emissions calculators?

Thai Vietjet provides shipment for all kinds of goods except illegal items. In terms of booking platform, Thai Vietjet has assigned a potential agency to support in the cargo booking clearance process.

Which industries and sectors do you think will drive more air freight volumes in and out of Thailand? What are your thoughts?

Both the manufacturing and e-commerce play a significant role in driving the air freight volumes. As the world is being globalized, the connectivity between the different parts of the world has become more crucial, resulting in the increasing demands for air freight from every corner of the world, and the needs for air freight for each industry in and out of Thailand can differ in different seasons of the year.

Exclusive interview with cargo.one’s Moritz Claussen

Payload Asia got a chance to catch up with cargo.one’s founder and co-CEO Moritz Claussen to explore the air cargo booking platform’s impressive growth, how it is unlocking new value for forwarders and airlines worldwide, and its long-term plans to digitally enhance the wider industry.

Can you tell us more about cargo.one? How is the company performing so far?

“cargo.one is rapidly becoming the only platform a freight forwarder needs for air cargo bookings - from single branch SMEs to the world’s Top 10 forwarders, we deliver instant customer quoting, pricing, and sales - through our marketplace or via APIs or TMS. From our fxounding, cargo. one has been built directly alongside forwarders. We started back in 2017 in branches observing the real pain points first hand - we could see where inefficiencies needed to be addressed, so in 2018 we pioneered digital bookings. Today, cargo.one is used by over 15,000 agents in 107 countries in all corners of the world.

In Asia specifically, we partnered with major Asian cargo carriers, such as ANA Cargo, early on. Asia Pacific is now our highest growth customer market and in the past year alone, we added vast new capacity options with major carriers like Eastern Air Logistics, Hong Yuan Group, and Silk Way West. Today, cargo.one is the clear digital leader in Asia, and a key gateway to capacity for forwarders in 43 markets across the region. We are, of course, also super proud to have just been voted Cargo Booking Platform of the Year in the Payload Asia Awards.”

Can you tell us about any challenges for the company in scaling up, and where are you exploring the opportunities?

So, the challenges of leading the pack have often created the biggest opportunities and differentiators for us. cargo.one has been at the forefront of proving the case for digital bookings since day one - the results have been hugely successful and nowadays digital distribution is

an important example of progress to inspire the wider air cargo industry.

Air cargo is a truly global industry and so it was vital that cargo.ne secured the most relevant worldwide capacity via partnerships with the leading airlines globally. This was of course hard work, but with over 50 major airlines digitally connected to our platform, we can offer forwarders the broadest and most accurate global market view.

Our uniquely strong offer quality has been vital to our success and is renowned in the market. We not only build the connections with top airlines but we invest more in strengthening that content than any other marketplace in order to provide freight forwarders the lowest booking rejection and error rates. For freight forwarders, this means a super easy to use interface, robust, bookable offers and all live rates honored – giving certainty to their business strategy, competitive ability and their customers’ satisfaction. This has resulted in cargo.one being

Moritz Claussen, founder and co-CEO at cargo.one

loved and trusted by forwarders and so we are scaling fast.

What can you say about the adoption of digital tools for smaller players? What should be the first step in making the decision to go digital?

Without a doubt, every freight forwarder should now be conducting digital air cargo bookings – live bookable rates from airlines is the foundation of freight forwarding today, and the benefits around speed, efficiency and cost savings are very clear.

The issue today is how forwarders can best accelerate adoption towards conducting the majority of bookings online. This means using a user-friendly route to the most comprehensive and reliable market view, and instant access to book all the rates they need for each and every shipment. Smaller forwarders tell us every day that the speed and supply options from cargo.one has transformed their quoting output and their win rate.

For example, smaller forwarders need a platform that can boost their rate management in order to quote more competitively. For example, a whitepaper from cargo.one, based upon nearly one million price data points, showed that rate sheets can deviate up to 1000% from dynamic spot rates, and some 40% of the time will deviate more than 20% or 50 cents per kg.

Hence, cargo.one live estimates is a valuable innovation that delivers the ability to speedily bridge the gap between rate sheets and spot rates. Quoting agents using cargo.one gain the best market view – including rate sheets, live estimate rates and live spot rates and so delivering scale, cross validation and precision for every shipment. Forwarders know that the correct rate has been uncovered every time.

When it comes to sustainability, what’s your take on ESG initiatives? What should be the strategy for companies that want to be more sustainable?

Sustainability is clearly an important focus for the entire industry. Digital booking on cargo.one today helps forwarders to identify the most efficient routes for shipments, and we help to provide relevant information. We also help airlines to optimize their load utilization and fly fuller airplanes, which is better for all of us.

In the medium term, as carriers develop more sustainable capacity types, we look forward to bringing those front of mind for freight forwarders and offering SAF options for shipments. In the longer term, because we want our innovations to be truly meaningful, we will focus future innovations on leveraging our vast data insights to offer freight forwarders data-driven guidance for their decision making - surrounding route optimization, smarter storages, more forecasting for routes and transparency on the CO2 impact of every option.

Where do you see the air freight industry headed in the next decade? Which other technologies could help address industry challenges?

“We will see more comprehensive digital connectivity across the whole air cargo ecosystem. There will rightfully be more focus on total endto-end visibility and a truly seamless experience spanning all the leading platforms.

Our product and technology teams are constantly on the lookout for new technologies that can enhance our product. A concrete field in which we are making good progress is the utilization of generative artificial intelligence to further raise forwarders’ efficiency and help them to structure any remaining unstructured and non standardized communications. It is possible to further reduce the email burden with natural language processing for quotes, and make the digital booking process even faster. As part of our cargo.one pro offering for enterprises, we have introduced an AI assistant to help with the processing of email quotations, for example.

cargo.one is also exploring ways in which AI can help to predict demand and pricing advice for forwarders booking. Providing forwarders with more steer around pricing will further

help to raise their efficiency and competitive ability. Our platform offers a wealth of compliant insights, and huge potential to apply AI and machine learning around shipment characteristics, forwarder and shipper needs, and the availability of supply options. Also, steps to help mitigate CO2 impacts will involve sharing relevant information via APIs, and having the right data available to everyone to make the best choices.”

Based on your customer conversations, what’s the key to creating value?

cargo.one empowers any forwarder with smarter air cargo booking for all shipments, any time, going anywhere. This means a 360 degree market view and rapid, easy access to book the best rates through any endpoint they need. We are unique in combining the best market offer content with highly intuitive solutions.

Since the start, our targeted approach to innovation has been laser-focused on generating maximum new value.

cargo.one pro is a great example of this – where we first gained a first hand understanding of the frictions, inefficiencies and expense around traditional agent-to-agent bookings. We then co-built a solution directly with around 60 of our customers globally.

The result is cargo.one pro, the biggest game-changer the industry has seen for import and cross trade bookings. It delivers the ability to book imports quickly at a click of a button 24/7, and by a forwarder listing their own services, also win confirmed shipment bookings from other agents using cargo.one. Through cargo.one protect, we even offer payment protection to make new agent collaborations risk free.

For enterprise forwarders, we offer a plug and play solution to connect to more than 50 airlines globally through one single API and to gain access to their offering digitally. You could call all these new capabilities ‘digital superpowers’.

How is digital air cargo booking now progressing across Asia as a region? Initially, Asia was behind Europe and

North America in the early days of digital booking, but there has been a real acceleration as more forwarders turn to digital booking even for shipments within Asia. In Eastern Asia specifically, our partnerships with all three of Japan’s home carriers, Singapore Airlines Cargo and both Hongyuan and Eastern Air Logistics have helped cargo.one to attract forwarders and accelerate our growth trajectory. We continue to see Asia as a core part of our strategy and will continue to bolster our leadership in the market.

We recently launched in China, and are already seeing remarkably strong interest in cargo.one. In particular, digital agent-to-agent bookings with cargo.one pro are proving a very attractive proposition for forwarders to win new business around the clock. For example, Chinese agents are keen to expand their business to our global customer base in 107 countries, with importers in Europe and USA of particular interest. Partnering with major Chinese air cargo carriers such as EAL is only accelerating this development.

5 Questions with Cathay Cargo’s Southeast Asia head

When it comes to transporting international air freight, there’s no question what Cathay Cargo can do and the length the airline goes to satisfy and exceed the expectations of its customers. In this interview, Ashish Kapur, Regional Head of Cargo in Southeast Asia, shares his thoughts to talk about customer experience, innovation and what lies ahead for Hong Kong’s flag carrier.

How have customer expectations changed over the last 3 years?

Customers expect reliable and consistent service and with the enhancement in technology in the past three years customers also expect speed, visibility, and flexibility in managing their shipments. All stakeholders in the value chain— shippers, freight forwarders, airlines— are investing in technology and automation.

Cathay Cargo continues to innovate new solutions, services and technology for customers as it builds towards its vision to become the world’s most customer-centric air cargo service brand. Continued investment in technology and operations will solidify its position as a leading player in the industry.

In addition to Cathay Pharma, Cathay Cargo has recently invested in other refreshed solutions, including Cathay Priority, and a new solution for post office customers, Cathay Mail. These services are in response to customer needs for effective delivery solutions underpinned by new digital technology that enables better shipment visibility, reliability, and speed, where e-commerce demand has surged since the pandemic. In turn, they have been backed up by further investments in

the multi-dimensional track-and-trace service Ultra Track, and Click & Ship, the intuitive online booking service which offers instant processing and confirmation.

With technology and digital tools becoming more accessible, what is Cathay Cargo doing to stay ahead of the competition?

In response to customer demand, Cathay Cargo has added the ability to make up to 16 air waybill bookings under one transaction and carbon emissions offset on its digitalised online booking platform Click & Ship, with 24/7 real-time access to all its specialist solutions and prices, and with instant confirmation when possible.

Apart from digitising the customers’ booking experience, we have also embarked on our journey in the overall digital customer experience review and revamp. In addition to a holistic customer journey review, we envision making our Cathay Cargo website a one-stop-shop digital information and action hub with a seamless user experience for our customers. It is just a start, and more exciting enhancements and new features on our website and booking platform are underway.

What’s your take on the use of AI tech like large language models enhance customer experience?

AI would definitely be one of the key disruptors revolutionising the whole cargo industry. Cathay as a whole, including Cathay Cargo, sees great potential in scaling up our AI application effort, including the use of large language models (LLM) to improve customer experience. The more direct use cases would be leveraging such

technology on enhancing the efficiency of customer communication and information searching. Multiple trials are ongoing to test out the effectiveness of the customer experience improvement. Cathay Cargo will soon be putting its experiment into production to gather feedback and learning for further expansion into more customer touchpoints.

Is a personal touch still the way to go when it comes to dealing with cargo customers?

While AI/LLM will certainly play a significant role in enhancing the customer experience in the cargo industry, Cathay Cargo strongly believes in maintaining a strong personal touch with our customers. The cargo industry operates in an extremely dynamic business environment – customers’ requirements could be highly unique, especially for special cargo. While AI can handle routine inquiries and provide basic information, our skilled people are better equipped to handle complex scenarios, exceptions, and unforeseen challenges to serve our customers’ needs in full. With efficiency in mind and recognising that every shipment is different, the fine balance between combining AI-driven automation with human interaction and expertise allows for the maximum efficiency and personalisation, and allows the air cargo carrier to better satisfy customers’ needs.

Where’s the demand when it comes to international freight?

One area that continues to stand out is the e-commerce movement from the Chinese Mainland to various destinations, including Southeast Asian countries and North America. We have been experiencing consistent growth in e-commerce tonnages thanks to the infrastructure and logistical capabilities of Hong Kong, which have been supporting such growth with key industry players.

However, the demand for air freight in the traditional high-tech sector has been slower than expected in 2023. This has impacted our freight volumes from our other key markets such as Vietnam and India though we are seeing some promising signs of recovery in these geographies and sectors.

AAPA airline members set new SAF use target by 2030

Leaders of the Association of Asia Pacific Airlines or AAPA have pledged to work towards a sustainable aviation fuel (SAF) utilisation target of 5 percent by 2030. The resolution, one of three resolutions agreed upon, was announced at the 67th Assembly of Presidents held in Singapore on 8-10 November 2023.

The airlines disclosed their collective ambition, despite recognising that production of the alternative green fuel is still nascent across the globe and only an adequate supply would effectively mitigate CO2 emissions in international aviation.

Sustainable aviation fuel is considered the most effective measure for the abatement of carbon emissions in international air transport operations. It is expected to account for 65 percent of the industry’s carbon reduction efforts, but at its infancy stage, current production and supply is at 0.2 percent of the industry requirements to reduce 450 million tonnes annually by 2050.

With this in mind, the AAPA has urged governments, fuel producers, airports, and other industry organisations to come together and accelerate the transition to renewable energy and fuel the industry’s journey towards carbon neutrality.

“A harmonised global framework that enables the cost-effective supply of SAF is crucial for aviation to attain its net zero emissions goal by 2050,” said Mr. Subhas Menon, AAPA director. “By

highlighting their collective ambition on SAF usage, AAPA airlines are indicating the level of demand as an impetus for governments to consider the necessary support initiatives for supply, and for fuel producers to plan production capacity, to meet the needs of the industry. At the same time, a globally-agreed accounting framework for airlines to account for their emission reductions, based on a chain of custody approach, should be in place. This will ensure that the relevant carbon abatement credits are properly attributed in the SAF supply chain from feedstock to production and use.”

The European Union, the United Kingdom and the United States have already announced their respective policies and regulations to accelerate the production of SAF and address the cost difference compared with conventional jet fuel. AAPA in 2022 called on governments to support ICAO’s CORSIA or Carbon Offsetting and Reduction Scheme in International Aviation and the development of sustainable alternative fuel

As the region with the largest potential share of suitable feedstock, the airline group believes Asia Pacific is well-placed to serve as a major SAF producer. Noting the crucial role played by conventional fuel suppliers in this initiative, Mr. Menon commented, “SAF is both essential and desirable for the aviation industry. In addition, SAF production represents a new growth and income opportunity for states

as well as for waste, agriculture, and fuel industries, globally. Government policy to encourage the production and take-up of SAF everywhere in the world is needed to transition to an environmentally sustainable international aviation industry.”

Reflecting on other collective priorities for airline leaders, the high-level assembly also passed resolutions on aviation safety and regulatory impact. Airline members pledged to work with ICAO and relevant regulators to generate initiatives like training, knowledge sharing and deployment of advanced technologies to further enhance safety culture in various areas, especially in regions with inherent terrain, visibility, and situational weather challenges. The association also called on governments to avoid imposing unilateral measures on airlines that would have a disproportionate impact on operations and affect overall connectivity and schedule reliability, particularly in circumstances beyond their control.

Delegates discuss aviation standards, safety at SAAA-IATA Air Cargo Day

On 31 October 2023, SAAA@ Singapore, in collaboration with IATA, organised the 4th edition of the SAAA-IATA Air Cargo Day 2023 at Singapore Expo@Max Atria, which was graced by none other than acting minister of transport, Mr Chee Hong Tat.

With the theme “Propel Aviation Standards and Safety” (or P.A.S.S.), the event featured insightful presentations from expert speakers on various important topics, including current trends, digital

transformation, reskilling, cargo safety regarding lithium batteries, and sustainability. Following the presentations, an interactive panel discussion provided an opportunity to delve deeper into the subjects of safety and standards.

Two award ceremonies took place with Singapore Airlines receiving the CEIV Fresh certification in recognition of their commitment to excellent service and their responsible role in creating a sustainable supply chain. SAAA@Singapore was also

recertified for competency-based training and assessment (CBTA), further highlighting their dedication to quality and their valuable contributions to the IATA program.

Singapore’s Air Cargo Day 2023 attracted a strong presence from the logistics community, airlines, shippers, associations, and government agencies. Overall, the event was a resounding success, which concluded with exciting rounds of lucky draws, with congratulations extended to the fortunate winners.

Industry leaders take centre stage at 10th Payload Asia Awards

Tonnes of laughter and conversations were shared at the 10th edition of the Payload Asia Awards, held at Four Seasons Hotel Singapore on 27 October. Around 130 professionals and executives were present at the awards event, which recognised the most outstanding players and operators from the air cargo and logistics industry.

A total of 27 trophies were raised during the evening which saw Hong Kong-based TAM Group walk away with two awards for the cargo GSA categories. New category Air Charter Broker of the Year was graciously received by Chapman Freeborn Airchartering, who was loudly applauded by the fellow industry players and business partners.

Also going home with two awards was SATS Ltd, including the much coveted Global Ground Handler of the Year. In the airline categories, Singapore Airlines won the Overall Carrier of the Year - Asia Pacific, whilst newly rebranded

Cathay Cargo raised the trophy as Global Carrier of the Year - Top Award.

In its 10th 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; Emma Murray, CEO and founder, Meantime Communications; Glyn Hughes, Director General, TIACA; Kelvin Leung, former CEO Asia Pacific at DHL Global Forwarding; Lothar Moehle, Executive Director of Cargo iQ; Peyton Burnett, Managing Director, TAC Index; Steven Verhasselt, Founder and Director of FB Cargo Strategy; Vivien Lau, CEO, Jardine Aviation Services.

Overall

Global

Cargo

Cargo

Global

Ground Handler of the Year – Asia Pacific SATS Ltd.

Global Cold Chain Service Provider of the Year dnata Singapore

Cold Chain Service Provider of the Year – Asia Pacific Asia Airfreight Terminal

Global Express Provider of the Year

DHL Express

Express Provider of the Year – Asia Pacific

World Cargo Airlines

Outstanding Logistics Player of the Year GEODIS APAC & Middle East

Outstanding Freight Forwarder of the Year

DHL Global Forwarding

Air Charter Broker of the Year

Chapman Freeborn Airchartering

Cargo Booking Platform of the Year cargo.one

IT Provider of the Year IBS Software

Air Cargo Technology Provider of the Year Hong Kong International Airport & Accenture

Air Cargo Automation Provider of the Year Lödige Industries

Global Cargo Sales Agent of the Year TAM Group

Cargo Sales Agent of the Year – Asia Pacific TAM Group

ALMAC 2023: Future-proofing supply chains

The 13th Asian Logistics, Maritime and Aviation Conference (ALMAC) 2023 was a successful 2-day event, with nearly 80 experts and industry leaders sharing insights across 20 forums.

Hong Kong’s annual flagship event in the logistics, maritime, aviation and supply chain industry attracted over 2,000 participants from 36 countries and regions, providing a platform for discussing industry trends and exploring business opportunities.

Industry giants led discussions on the challenges and potential of global supply chains, as well as how companies could effectively drive business growth and promote sustainable development through supply chain transformation and innovation in the current economic environment. Digital transformation

emerged as the optimal strategy to consolidate Hong Kong’s position as a logistics hub and to optimise supply chains for enterprises.

Another key discussion was that of ‘diversified logistics development’ which has been a key enabler in strengthening regional connectivity. Speakers discussed the impact of railway and multimodal connectivity in the Greater Bay Area, as well as the Regional Comprehensive Economic Partnership (RCEP) coming into full effect in June as positive catalysts in this development.

Representatives also delved into the impact of impending carbon taxes and other environmental, social and corporate governance (ESG) measures, as well as how the ‘3D approach’ – decarbonisation, digitalisation and decentralisation

– could bring businesses sustained development opportunities.

Close to 100 exhibitors showcased cutting-edge logistics and supply chain solutions at ALMAC, which saw customised robots, AI and data systems at the inaugural Logtech Salon, to share the latest developments and applications in the field of innovation and technology. Three workshops also debuted this year, focusing on ESG, e-commerce and youth empowerment.

This year’s conference theme was Future-Proofing Supply Chains: Diversification Decarbonisation Digitalisation. The annual event is jointly organised by the Government of the Hong Kong Special Administrative Region (HKSAR) and the Hong Kong Trade Development Council (HKTDC).

EVENTS

TIACA’s Executive Summit 2023: Mission accomplished

Singapore gathers air cargo, logistics sector at tlac SEA

The International Air Cargo Association’s Executive Summit completed its mission of bringing together the global air cargo industry inside the iconic Skyhall venue at Brussels Airport on 6-8 November. Event delegates took part in two and half days of lively discussions, debate and informational sessions as well as networking opportunities throughout the event, which was hosted by none other than Brussels Airport Company.

Some of the topics discussed at the biannual conference include trade and business challenges, airports, regulatory challenges, creating new opportunities, drones, digital innovation, workforce developments, precious cargo, sustainability and group outlook, which was topped off by an airport tour and a night out on the town.

The event also saw the 2023 Hall of Fame inductee ceremony as well as the annual TIACA Sustainability Awards program in which LATAM Cargo and Regent Craft emerged victorious in the corporate and business startup categories.

Over 7,300 participants from more than 60 countries attended the first transport logistic Southeast Asia and air cargo Southeast Asia, which took place in Singapore from 1 to 3 November 2023.

Over 50 conference sessions covered hot topics like resilience, sustainability and digitalization, which were the dominant themes of the regional industry event. Organiser MMI Asia saw 135 exhibitors from 23 countries at the biennial event, where official representation from The Netherlands, Germany, and China as well as countries in Southeast Asia showcased their practical insights into sustainability and digitalization

Companies from logistics, sea and air freight also graced the exhibitor stage, including DHL, dnata, Gebrüder Weiss, Incheon International Airport and Singapore Airlines. air cargo Southeast Asia also brought together the entire supply chain in Singapore, with presentations from Boeing, Emirates SkyCargo, Singapore Airlines, United Cargo, Jettainer, Garuda Indonesia, MAS Kargo, Vietjet Cargo and ACL Airshop.

The next transport logistic Southeast Asia and air cargo Southeast Asia will take place from 29 to 31 October 2025 at Singapore’s Sands Expo & Convention Centre.

Air

cargo logistics leaders gather in Abu Dhabi for inaugural ACE

Caspian Air Cargo Summit returns to Baku

Forward-thinkers across the air freight logistics spectrum gathered in Abu Dhabi at the inaugural Air Cargo Event, held at the luxurious W hotel in Yas Island on 4-6 December 2023.

The event, hosted by Etihad Cargo, brought together 180 decision-makers to meet, share knowledge, network and recognise excellence, with heads of industry associations, forwarders, consolidators, time-critical experts, major airlines and GSSAs in attendance.

From the welcome reception above the Formula 1 tracks to the gala dinner sponsored by co-organiser Neutral Air Partner at the renowned Café del Mar, the unique event format mixed an inspiring speakers conference with scheduled business meetings and social networking events, ending with casual drinks on the rooftop of W hotel in Yas Island.

Céline Hourcade, founder managing director of Change Horizon and co- organiser of the event, emphasised the event’s role as a powerful business enabler for companies of all sizes, promising an even more opulent affair with a rejuvenated conference program for the 2024 edition.

Silk Way West Airlines hosted the 9th edition of the Caspian Air Cargo Summit at the JW Marriott Absheron Hotel Baku on 23-25 October 2023. The summit, which started in 2006, is considered the largest and most comprehensive aviation event in the region, bringing distinguished participants from around the world to the Caspian Sea.

The event gathered government officials, international air cargo industry leaders and logistic experts in the capital of Azerbaijan. About 400 delegates from more than 40 countries, as well as representatives from the 18 regional offices of Silk Way West Airlines, participated in this grand event.

Over two days, delegates discussed the current trends, challenges and opportunities in the air freight sector and explored the innovative solutions for the future. Representatives from key players in the global industry also shared valuable information and updates on future cargo aircraft and next-generation engines, as well as sustainability and innovation in logistics and supply chains, highlighting the growing role of e-commerce in logistics and air cargo.

Wolfgang Meier, president of Silk Way West Airlines, said the latest edition was ‘the best ever attended’ with memorable moments like the gala dinner held at the exquisite Gulustan Palace providing a vivid display of Azerbaijan’s rich cultural heritage.

Simon

Sales

Chua

Sales

Harvest

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