COLD CHAIN
Etihad leveraging increased demand for perishable exports Etihad Cargo continues to ship a range of cold chain products around the world and expects to see more growth for the perishables market in the near future. Food & Beverage Industry News reports.
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he perishable export market has been growing steadily over the last decade, and it remained robust during the COVID-19 pandemic, bolstered by strong segment demand and the efforts of governments around the world to ensure the continuous supply of perishable products. Etihad Cargo has remained wellpositioned to leverage this increased demand as its transports perishables across its global network. There are several factors that Etihad Cargo considers when it comes to matching market demand for the shipping of perishables, including regulations, infrastructure
Etihad Cargo’s cool chain manager, Fabrice Panza, has overseen the company’s growth in recent years.
and assets – Etihad Cargo’s aircraft, processes and training. Etihad’s commitment to ensuring it provides world-class services is a reason why it became International Air Transport Association (IATA) Centre of Excellence for Independent Validators (CEIV) Fresh-certified in 2019. IATA CEIV Fresh certification demonstrates the company’s compliance with Perishable Cargo Regulations (PCR), ensuring food safety, reducing waste, reinforcing trust, and enabling the company, in partnership with its customers, to implement best practices across all required cold chain solutions. IATA CEIV Fresh certification also gives Etihad customers confidence that the company’s commercial activities and operations adhere to the high industry standards and can also trust that Etihad Cargo’s FreshForward product provide a fresh, fast, simple, and efficient features they need from their air cargo partner of choice. Cold chain solutions are a critical component of the global supply chain structure for several reasons. First, cold chain as a solution is dynamic and presents an opportunity for carriers to fine tune their processes, innovate, test the latest technologies and tools, such as software and active and passive temperature and location devices, and collaborate with the supply chain to improve forecasting, packaging solutions and lead times. Etihad Cargo works closely with Validaide, a digital platform that collects data to manage full cool chain capabilities and share them with the industry with the click of a button. Etihad Cargo is also working to enhance tracking and monitoring by utilising a digital twin system. In the United Arab Emirates, there is a dynamic and active cool chain and supply chain ecosystem, in which regulatory bodies and
40 Food&Beverage Industry News | April 2022 | www.foodmag.com.au
business entities work together closely with the shared goal of future proofing the industry. This, in addition to the adoption of new tools and the development of improved technological advancements, is making it easier to transport perishables across longer distances. Etihad Cargo ships a diverse range of perishable products, including fruits and vegetables, fish and seafood, flowers, meat, chocolate, seeds, plants, eggs and dairy, such as cheese. The commodity type Etihad ships the most of is fruit and vegetables, which makes up 40 per cent of its total perishables volume. Meat and fish come in second, making up close to one-third of Etihad’s total volume. The regions in which Etihad Cargo operates also has an impact on the volume of products it transports. For example, the company has a footprint in Europe
and increased shipping volumes by more than 40 per cent. Demand for India’s exports is predominantly driven by fruits and vegetables, including baby corn, pomegranate and coconut chunks – this product group makes up two-thirds of all exports from India transported by the company. Etihad Cargo usually exports those commodities into Europe and the United Kingdom at temperatures between 2-8 degrees, followed by some countries in the Middle East. Demand for Indian mangoes is fully driven by UK markets, and they are Etihad Cargo’s second most popular commodity shipped from India, making up 10-14 per cent of all perishable goods out that country. Globally, Etihad Cargo usually exports between 3,800-4,000 tonnes of fruits and vegetables every year. When it comes to the historical challenges associated with transporting perishables, environmental temperature and time
“Air cargo is an essential logistics component of the food industry, and while we expect to see a continuous increase in perishables, we also foresee diversification in commodity types being transported.” and Africa, so it ships a lot of flowers. Etihad carried more than 6,400 tonnes of flowers in 2021, making this product its fourth-highest ranked in terms of volume. However, Etihad’s main trade lanes originate from North and South Asia and India, into the Middle East and Europe. Its routes also address the demand in the Middle East and Asia for goods that originate from Europe and Africa. Meanwhile, one of Etihad Cargo’s top perishables markets is India. In 2021, Indian fresh exports ranked as our fourth-largest market
will always be critical factors. Another fundamental challenge comes at the time of handover – from the customer to the airline – when the airline has several processes to complete. This includes acceptance of the product and moving it to the cool room, then moving the product from the cool room to the aircraft, and upon arrival at the destination then moving the perishables from the aircraft to the cool room or sending it directly out for delivery to the consignee. There are several steps where everything must be managed to the minute, and that is why Etihad