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07/07/2021 11:55

The weekly newspaper for air cargo professionals No. 1,140

12 JULY 2021

HOW TO KEEP CARGO IN THE BOARDROOM

IAG Cargo sourced an initial supply of 1.2 million litres of neat SAF produced by Neste

IAG CARGO, K+N AND NESTE LAUNCH FIRST NET-ZERO CARBON CHARTER CHAIN I AG Cargo, the cargo division of International Airlines Group, has completed its first sustainable aviation fuel (SAF) charter chain of 16 flights from Stuttgart to Atlanta. Working with partner Kuehne+Nagel, IAG Cargo sourced 1.2m litres of Neste MY Sustainable Aviation Fuel (SAF). This collaboration marks the first time that passenger-freighter charter flights have operated with net-zero carbon emissions. The last of the British Airways B787-900 flights left Stuttgart on June 26, collecting automotive spares and other industrial goods destined for Atlanta via London Heathrow. The business has now completed 328 automotive charters since it began its charter service last year. The Neste MY Sustainable Aviation Fuel was made from sustainably sourced, renewable waste and residue raw materials. In its neat form and over the engine life-cycle, its use can reduce up to 80% of greenhouse gas emissions. The SAF was blended with fossil jet fuel to comply with aviation fuel certification standards, shipped from Europe and transported by underground pipelines into Heathrow. John Cheetham, chief commercial officer at IAG Cargo commented: “International Airlines Group was the first European airline group to commit to powering 10% of its flights with sustainable aviation fuel by 2030. These charters mark IAG Cargo’s

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INSIDE

UK SME EXPORTERS DIVIDED ON BREXIT

SIX months on from the UK’s exit from the EU, research from DHL Express has found that small and medium-sized British businesses are ... PAGE 2

TURKISH DELIVERS 100M VACCINES

AS the cargo company that flies to more countries than any other, Turkish Cargo continues to fly uninterrupted and contributes to the fight ... PAGE 2 ETIHAD, EL AL LAUNCH CO-OPERATION

ETIHAD Airways and EL AL Israel Airlines have launched a joint codeshare network. This builds on the Memorandum of Understanding ... PAGE 3

first step on that journey – we are incredibly proud of our commitment to long-term sustainability, helping to reduce our carbon footprint overall. “We are constantly looking at ways which reduce our impact on the environment whilst improving our customer offering and we were delighted to support Kuehne+Nagel with sourcing Neste-produced SAF to power these landmark charters, the first of many.” Yngve Ruud, member of the board of Kuehne+Nagel responsible for air logistics commented: “Climate change has now given new urgency to

the search for cleaner, renewable fuels as they are currently the most effective measure to achieve true decarbonisation in our industry. Kuehne+Nagel is committed to increase its supply of SAF as part of our ambitious Net Zero Carbon programme.” IAG is investing $400 million in the development of sustainable aviation fuel supply over the next 20 years. SAFs are produced from renewable raw materials, such as biomass or waste and residues, enabling significantly reduced emissions.

DHL DELIVERS US VACCINES

DHL Express has successfully delivered the United States government’s donation of the Pfizer-BioNTech vaccine to Malaysia ... PAGE 4

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NEWS

UK SME exporters divided TURKISH CARGO DELIVERS 100 MILLION COVID-19 VACCINES on post-Brexit outlook

ix months on from the UK’s exit from the EU, research from DHL Express has found that small and medium-sized British businesses are divided on the impact of Brexit. Half (51%) of those who already export from the UK, or plan to, agreed that exporting would continue to be a priority for their business and just over one in 10 (11%) businesses surveyed had either started exporting to new non-EU countries or were considering doing so in the near future. At the same time, a quarter (24%) of those who already export, or plan to, state they have stopped selling to some EU markets, with 6% of British businesses stating they have stopped selling to EU-markets altogether. The research looked at the challenges facing SMEs across the UK and paints a nuanced picture. When asked if they thought they would export more or less over the next year compared to the previous 12 months, exporters were completely divided: 25% forecast an increase while 28% anticipate a decrease. Since January 1 2021 a number of exporting incentives, such as the SME Brexit Support Fund, have been on offer from the UK government. The research found that, while 30% of exporters surveyed believed these support measures were helpful, a significant 24% were not aware of their existence, indicating some SMEs may be missing out on important trading opportunities. Lack of consumer awareness of the

additional customs charges is reported as a concern, with nearly half of exporters (43%) stating it was a challenge. However, despite this, only a quarter of businesses (28%) have pro-actively alerted customers to the potential customs, VAT charges and shipping costs. Ian Wilson, chief executive at DHL Express UK&I said: “Six months on from the UK’s departure from the European Union and it is clear that the nation’s small businesses are still navigating the changes with mixed feelings. “The findings from our exporter research reflect our own customers’ experiences, where some sectors have been able to stabilise and even grow, taking advantage of government incentives and new trade deals, while others are feeling a significant impact from the increase in regulatory complexity. “It is encouraging that so many businesses continue to see a role for exporting in their future but it’s clear more needs to be done to manage the new trading environment we’re in. Whether it’s communicating clearly to consumers and suppliers, or refocussing on different markets, to thrive in a post-Brexit and post-COVID-19 world, businesses must look at how to evolve their operations.” Despite the challenges of the last six months, only 17% of exporters disagreed that exporting goods outside the UK will continue to be a priority and respondents were clear on their requirements to export more in .the future.

market share to 7.5 percent in pharmaceutical transportation and became one of the most active carriers in vaccine transportation. Concurrent with the application of the vaccines, which increases every day, we will continue to shoulder this responsibility until we win this battle against the pandemic.”

450 tonnes AS the cargo company that flies to more countries than any other, Turkish Cargo continues to fly uninterrupted and contributes to the fight against the pandemic for the return to better days. Managing to grow under the leadership of Turkish Airlines board chairman İlker Aycı and the executive committee and despite the shrinking sector during the pandemic, the global air cargo brand also carried out an important mission for vaccine transportation. With its strong fleet, wide flight network and great service quality, Turkish Cargo delivered 100 million COVID-19 vaccine doses to more than 35 countries around the world. On the topic, Turkish Airlines chairman of the board and the executive committee, Aycı stated:

“As the pandemic is an unprecedented threat to the human health, our Turkish Cargo brand is a significant advantage when it comes to combatting this threat. Our brand is able to carry vaccine doses to more than 100 countries with its international air bridge, becoming a lifeline for countries that are located too far from the ones with vaccine production facilities. “Proving itself with hundreds of vaccine transportation operations to countries all around the world ranging from China to Brazil, India to Democratic Republic of the Congo along with operations to our own country, Turkish Cargo showed its reliability by transporting 100 million doses. “With these successful operations, we increased our global

Fear of surge in fake IDs among EU workers at UK airports LEADING ID verification specialist SmartSearch has warned of a surge in demand for false identity documents, as the deadline for EU workers to apply for settled status is passed. EU citizens who could currently work in the UK without additional documentation, had until July 1 to apply for the scheme. Areas of airport operation which attract workers from the EU, such as ground crew and cargo, need to be aware of the potential rise in false documents being circulated by people without settled status. John Dobson, CEO at SmartSearch, says that organised crime gangs will exploit an opportunity to provide sophisticated false ID documents such as passports and driving licences, and that employers need to have a quick and secure method of verifying the identity of new employees.

The UK government is set to extend the deadline by 28 days in some cases where there are ‘reasonable grounds’ as there are currently an estimated 400,000 applications still to be processed, from more than five million people who have so far applied. Earlier this year SmartSearch launched the SmartOne digital ID solution for non-regulated businesses which provides a full individual identity check in just a few seconds. Dobson said: “What we are likely to see is a surge in false ID documents being circulated and organised crime taking full advantage of the situation.” “It’s more vital now than ever that businesses ditch outdated ID checks with hard documents and switch to an online digital solution that can provide a full report on an individual’s ID within a few seconds.”

AERO Africa, the Hong Kongbased neutral air cargo solutions group, has opened a new regional office in Casablanca, Morocco. The new office will look after the group’s interest in the region, operating as a control tower and centralised service centre in North Africa for its overseas partners and clients. The North Africa control tower will be led by Nina Carcat and

Hamza Benzina. Carcat said: “With the accelerated economic growth in North Africa, and the matching increase in automotive, pharma and other logistics activities from direct trade with Far East as well as the world. it has become critical in providing the logistics and aviation sector with a tailor-made simplified neutral air cargo solution, supported by a secure financial transacting platform”

Aero Africa opens control tower in Casablanca

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With the start of the vaccine distribution, Turkish Cargo carried 100 million vaccine doses, which is approximately 450 tonnes, from the vaccine production centres to destinations in its wide flight network with over 250 flights. Air cargo carriers transported COVID19 vaccines to key and certificated destinations such as Turkey, Baku, Rome, Belgrade, Copenhagen, Miami, Sao Paulo and Mexico City, creating a global corridor between more than 400 destinations. With 30 years of experience when it comes to special cargo transportation, the brand proved its capability with vaccines that have different transportation requirements by carrying seven different COVID-19 vaccines in containers with special cooling systems.

Cathay Pacific deploys Descartes CATHAY Pacific Cargo is introducing Ultra Track, its multi-dimensional tracking product, to its network, with a phased introduction at 29 airports across the globe. Cathay Pacific Cargo’s Ultra Track uses the Descartes Core Bluetooth Low Energy (BLE)TM Network, Tags and Readers. These data-loggers and transmitters offer visibility to Cathay Pacific Cargo customers who can now monitor shipments in near real-time through the airport-to-airport leg of the cargo journey. This is the first Cathay Pacific IoT (internet of things) application that enables remote connection to shipments. Ultra Track is suitable for pharmaceutical, perishable and other vulnerable shipments. The loggers record and transmit data to Bluetooth readers in the cargo terminal and on the airside ramp area.

NEWS

PayCargo launches payment platform for FIATA members

ayCargo, has developed a tailored solution, called Freight-Pay, which will allow International Federation of Freight Forwarders Associations (FIATA) members to instantly make and receive payments between themselves, while benefitting from reduced transaction costs and heightened security features. FIATA members can register on the platform free of charge to make and receive payments globally. “We have worked with FIATA to develop a cost-effective custom online payment platform to ensure their members have access to, and can benefit from, the ongoing digitalisation of the freight payment industry,” said Lionel van der Walt, global chief commercial officer, PayCargo. “Freight-Pay simplifies transactions and reduces costs in a secure environment, supporting FIATA members to grow their business and improve efficiency and customer service delivery. “PayCargo remains focused on leading open collaboration projects that will benefit the broader industry as we continue to digitise.” Freight-Pay is end-to-end encrypted and allows FIATA members to create an account, send and receive money to and from other members worldwide, and provides them with instant visibility and access to transaction data. “Freight-Pay is meant to simplify the freight forwarder’s day-to-day business and we are excited to introduce this new tool to our members,” said Dr Stephane Graber, FIATA director general. “As we dive deeper into the digital world, we must continue to equip our members with hands-on resources that make their daily practice easier. “That’s why we collaborated with PayCargo to develop the

Dr Stephane Graber, FIATA

Freight-Pay solution, so that FIATA members can have an efficient and secure platform to transfer money among themselves at a reduced cost.” PayCargo has a track record of teaming up with like-minded associations and companies to develop tailored solutions. In April, PayCargo worked with Air Cargo Netherlands to simplify the payment and collection of the association’s membership and delegate transactions. In June, PayCargo secured a Series B investment of $125 million with global private equity firm Insight Partners which will be used to further develop digital payment tools and services for platform users. The online payment platform is also working with companies such as IBS Software, Unisys, Champ Cargosystems, Accelya, Kale, Nexshore, and more, to offer better payment options, and to broaden access to contactless digital payments across the industry, using state of the art API technology to achieve this.

Qatar Airways Cargo Joins Pharma.Aero QATAR Airways Cargo becomes a member of Pharma.Aero, a worldwide platform catered to excellence in pharma transportation, effective July 5 2021. Both organisations share a common goal of achieving excellence in reliable endto-end air transportation for pharma shippers. Through the membership, the airline will also participate in Pharma.Aero’s board meetings and focus groups to contribute its expertise. Guillaume Halleux, chief officer cargo at Qatar Airways said: “Collaboration is vital to strengthen

the pharma supply chain integrity. The full membership with Pharma.Aero will allow us to share and receive market knowledge and also collaborate with different air cargo stakeholders in the supply chain which will ultimately lead to continuous improvement of life science, medtech and the pharma air cargo supply chain. “We look forward to collaborating with Pharma. Aero members and excel in offering a reliable endto-end air transport and seamless cool chain.” Qatar Airways Cargo has in excess of 85 pharma stations.

Lionel der Walt, PayCargo

Etihad Airways and El Al launch strategic co-operation ETIHAD Airways and EL AL Israel Airlines have launched a joint codeshare network. This builds on the Memorandum of Understanding (MOU) the airlines signed in 2020 following the Abraham Accords signed by the UAE and Israel. For flights from July 18 2021, EL AL will add its ‘LY’ code to Etihad’s existing twice weekly service between Abu Dhabi to Tel Aviv. Beyond Etihad’s Abu Dhabi hub, this new partnership will extend further and is planned to include destinations in Australia, Bahrain, India, Korea, Philippines and Seychelles from August 1. In the next phase of extending the codeshare agreement, subject to obtaining applicable governmental and regulatory approvals, Etihad

will offer 14 destinations across the Middle East, Europe, Asia and US by adding its ‘EY’ code to EL AL flights. Tony Douglas, group CEO, Etihad Aviation Group, said: “We are very pleased to be able to announce the launch of our codeshare and a range of benefits between and beyond our respective hubs in Abu Dhabi and Tel Aviv.” The 2020 Memorandum of Understanding also provided for exploration of MRO, pilot and crew training, and cargo opportunities, which the parties are progressing. Avigal Soreq, CEO, EL AL Israel Airlines said: “This is an important milestone as this codeshare will bring growing benefits to our respective airlines and countries.”

ACW 12 JULY 2021

NEWS

DHL Express delivers US donation of vaccines to Malaysia DHL Express has successfully delivered the United States government’s donation of the Pfizer-BioNTech vaccine to Malaysia. The arrival of around 1,000,000 doses comes as part of a recent commitment by the U.S. to assist with recovery efforts worldwide. This shipment is made possible via the COVAX global vaccine sharing programme that aims to accelerate global equitable access to immunisation against the pandemic. “We are deeply honoured by the trust that our customers have placed in us and I’m incredibly proud that the team has yet again stepped up to successfully deliver another batch of COVID-19 vaccines to Malaysia. As DHL Express continues to leverage our global network and strong medical logistics expertise to ensure that these life-saving vaccines arrive safely and promptly, we must also remind our-

selves of the need for collaboration amongst various parties and countries to manage this public health crisis effectively,” said Ken Lee,

CEO, DHL Express Asia Pacific. DHL Express arranged for the collection of the vaccines from facilities in the US before it was airlifted from its Cincinnati Hub to the DHL Express Subang Gateway, where it would be distributed to designated locations in Kuala Lumpur. From door-to-door, the journey spanned only four days in complete compliance with stringent handling and storage requirements. “To date, DHL has transported more than 300 million doses of approved vaccines worldwide, five million of which were to Malaysia,” said Julian Neo, managing director of DHL

Express Malaysia and Brunei. “The shipment today marks another milestone in combatting the spread of COVID-19 and contributing to the country’s recovery. In keeping with our mandate of connecting people and improving lives, we are proud to continue playing an active role in seeking a safe, new normal for the businesses and communities we serve.” More than 9,000 life sciences and healthcare specialists work across DHL’s dedicated global network so that pharmaceutical, medical devices, clinical trials and research organisations, wholesalers and distributors, as well as hospitals and healthcare providers are connected across the value chain and through digitalisation, from clinical trials to point of care, and every step in between. On a global scale, logistics providers are challenged to establish medical supply chains rapidly to deliver vaccines of unprecedented amounts of more than 10 billion doses worldwide—also in regions with less developed logistics infrastructures, where approximately 3 billion people live. To provide global coverage over the next two years, DHL estimated in its vaccine logistics white-paper that up to 200,000 pallet shippers and 15 million cooling boxes as well as 15,000 flights will be required across the various supply chain setups.

MENZIES Aviation’s cargo operations in Melbourne have received a further Center of Excellence of Independent Validators for Pharmaceutical Logistics accreditation (CEIV Pharma) as recognised by IATA. This accreditation is for Menzies’ Melbourne base and marks the company’s second accreditation in Australia. Last month, Menzies’ Sydney base became the first handling agent in the Oceania region to achieve CEIV Pharma. The accreditation is significant for Menzies, as the IATA CEIV Pharma underlines Menzies’ capabilities for handling high-value, time sensitive, and temperature-controlled pharmaceutical products with speed, consistency and efficiency. This achievement is particularly important, as Melbourne is Menzies’ second

largest cargo operation in the Oceania and South East Asia network. Melbourne is the second station to be certified globally, with upcoming certifications expected in London Heathrow and Amsterdam as they near conclusion of the process. Alistair Reid, executive vice president, OSEA at Menzies Aviation, said: “It is fantastic to see the progress we are making in Australia as we continue to invest in our air cargo services. “For our Melbourne operations to be awarded the CEIV Pharma accreditation shortly after Sydney is a huge success and highlights our commitment to providing the highest standard of services and customer experience. Looking forward, we are excited to apply our learnings and experience to our bases globally.”

Menzies Cargo progresses with new CEIV pharma accreditation

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DANGEROUS GOODS

HOW HAS THE PANDEMIC AFFECTED THE DANGEROUS GOODS SECTOR

s Tom Ferguson president and chief technical officer of Currie Associates, a US-based training, consulting and auditing company explains, dangerous goods classification does not vary based on what is happening in the world. If a material or substance is toxic, corrosive, or explosive when there is no pandemic, then it remains toxic, corrosive or explosive in the middle of a pandemic. However, the need for supplies or products has led to temporary relief from regulation in many cases. Governments recognised that the risk to safety associated with the material was less than the benefit provided by the material.

High demand “For example, early in the pandemic, the need for alcohol-based hand sanitisers spiked as the World Health Organization and other health-based groups recognised the impact such products would have in reducing the spread of the disease,” he says. “Alcohol-based sanitisers are regulated as flammable liquids in all transport modes, thus requiring dangerous goods trained employees to properly pack, mark, label, and document shipments of these products. “Many companies that were not historically in this industry saw the need as an opportunity to make money, particularly when their main industry was experiencing huge declines in sales. Of course that meant that proper packaging was needed, as were marks, labels, documentation, and most importantly, trained individuals to perform the functions,” Ferguson explained to ACW. He notes that a huge impact was felt in the sector as the lack of trained individuals and the lack of readily available training meant that there were not enough trained people to do the job. Traditional in-person training classes were not an option. Thus the result was plenty of materials but no one to properly prepare and consign the packages. “To address this problem, various governments issued temporary relief options. For example, both the US Department of Transport and Transport Canada waived training requirements for employees as long as they followed specific packing procedures for the materials. “Relief was given for United Nation specification packaging and

in some cases, even relief from marking and labelling. As a result, these necessary items were able to be distributed in much larger quantities to areas of need,” Ferguson says. “Eventually these provisions were allowed to expire. But the question of risk remains: If the material is so important and vital that temporary relief can be given, should the material be regulated at all? “The UN Sub-committee of Experts on the Transport of Dangerous Goods makes every effort to avoid regulating by end use. But scenarios such as a global pandemic question the logic of that approach. “Further, industry by its very nature reacts far more quickly to market conditions, and is therefore greatly impacted by regulations that restrict movement. Thus, the situation raises the question of whether the consideration of risk should be reviewed in the context of end use of a product?” Ferguson believes that the lack of adequate training is still a problem. Co m p u t e r- b a s e d training systems are available but many employers shy away from this as it lacks the interaction between instructor and student. “Technology developments expand the possibilities of virtual learning environments in the DG world,” adds Ferguson. “But a current impact of the pandemic is in the supply chain capacity. “This resulted in reduced carrier staff as well as employees in the freight forwarding or warehousing segments. These employees either found jobs

in other areas, or simply left the workforce completely and followed the advice of the World Heath Organization by staying at home. “Now as parts of the world begin to ramp up production, the supply chain is facing another problem: not enough workers. Whether it is the air operator that is loading aircraft or the customs agents inspecting the goods for import, there are not enough people to perform the work.”

The problem is not just that there were not enough people to handle pre-COVID-19 cargo levels, there are not enough people to handle the post-COVID-19 levels and the backlog of goods that accumulated during the pandemic. “The COVID-19 pandemic has certainly changed the world in many ways. But it has raised questions, created new problems, and expanded opportunities at the same time in the DG transport world,” Ferguson concludes.

ACW 12 JULY 2021

DANGEROUS GOODS

Ask the expert: Geoff Leach Geoff Leach, director of the Dangerous Goods Office, spoke to ACW about his career in dangerous goods and why old lessons should be not be forgotten. number of incidents, and indeed fatal aircraft accidents, where it is supposed that they came involved in some way. ACW: What are the challenges with lithium batteries? Leach: A challenge is that unfortunately there are some fake batteries that cause problems. We stress how important it is to get batteries from reputable sources because they do really have potential for catastrophe. Not so long ago, there were two 747s lost in less than a year and one of them at least was found to have thousands of batteries on board which did not comply with the regulations. It’s very difficult to prove that they caused the fire but there was not much doubt that they were involved to some degree. ACW: What trends have affected this sector?

ACW: Mr Leach, how did you get into the dangerous goods sector of the airfreight industry?

Leach: In my 30 years in dangerous goods, the biggest change has been e-Commerce. At the press of a button you can order just about anything from anywhere and the person sending it may not know the rules surrounding shipping dangerous goods.

Geoff Leach: I was at the UK Civil Aviation Authority for 32 years and during that time I was head of their dangerous goods office and chairman of the International Civil Aviation Authority Dangerous Goods panel. I started off at the panel in 1993 and I haven’t missed a meeting since.

A lot of other disciplines in the aviation sphere of influence, like air traffic controllers or pilots, are all regulated by aviation regulations. Many shippers don’t understand the requirements for shipping dangerous goods.

When I left the CAA I was keen to get into training and I was determined to do it in a different way than had been tried before. I do not believe in the “one size fits all” approach. We try hard to tailor the training to the needs of the client.

Leach: The only people that can clamp down are the regulators. It is very difficult because if the batteries are sent from location X in one part of the world and get all the way to the UK, how can you trace and clamp down on that shipper?

ACW: What training does The DGO offer?

You need co-operation between states and regulatory authorities to get back to the original point but even that is very difficult. It is something that needs to be dealt with at a government-to-government level.

Leach: We train various entities but most of our work is related to shippers who ship dangerous goods. We also train freight forwarders, handling agents, airlines and civil aviation authorities.

ACW: How can this be clamped down on?

ACW: What are the screening processes for finding dangerous goods in cargo? Leach: So much of air cargo is done on trust and without it air cargo wouldn’t move. Shippers complete an airway bill and say that any dangerous goods in the consignment are in compliance with regulations. The airline cannot open every package and even if they could they might find a liquid or a powder, they have no idea if it’s dangerous goods or not. Cargo is X-rayed but a bottle of water would look much the same as a bottle of hydrochloric acid on X-ray so this is to really find bombs or IEDs. There are technological advancements in this area. For example, one of the last projects I was involved in at the CAA was the automatic detection of lithium batteries by an X-ray company but this is a difficult job as there are many batteries that are allowed to be in cargo. ACW: Who sets the regulations surrounding dangerous goods? Leach: The regulations are made by ICAO (International Civil Aviation Organisation) and they produce a publication called the Technical Instructions and that is valid for two years. Every two years this is revised and a lot of what is in there will not be changed. The constant problem with regulations is that they are always playing catch up with technology. The air regulations are based on the recommendations from the UN. They had their final meeting at the end of last year and that will then filter down to the air regulations in 2023. In those two years all kinds of things can happen in terms of developments, like the boom in e-Commerce or the use of drones. IATA produces its own document called the Dangerous Goods Regulations. This does not have legal force but it is produced every

The ill-fated ValuJet aircraft that crashed: a DC-9-32, registered N904VJ

For example, if we’re training aviation authority staff, we usually spend a week in the classroom learning regulatory text and the following week we go out and mentor staff in the audits and processes. ACW: What content does the training cover? Leach: A lot of our work is based around the transport of lithium batteries, which is a huge issue. Lithium batteries, which don’t comply with the very stringent rules, are extremely dangerous and there have been a

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year and reflects the technical instructions. It’s influenced by incidents, technological advancements and the work of the UN. ACW: In you professional opinion, what is the way forward? Leach: Through my experience I’d say incidents usually occur through ignorance and lack of knowledge, it’s very rare people send non-compliant dangerous goods deliberately. But in those cases there should be big fines, big penalties and publicity to deter others from not complying. The more expensive it is to comply, the more likely it is that people are going to circumvent the rules. So, any regulations must take account of how likely it is that people are going to comply with this. You need to find a balance. There have been developments in lithium battery packaging that can safely contain them but, again, you need to find a balance with cost. You are not going to ship a £1 battery in a £50 box. Going forward, education is also very important and is the best way to prevent problems arising. For example, the ValuJet aircraft crash, in which 110 people died after a fire broke out in the cargo hold, was 25 years ago but what concerns me is that the message of ValuJet is slowly being forgotten. Lessons learned from the accidents in the past should be remembered to ensure history does not repeat itself.

DANGEROUS GOODS

is chief operating officer of Tirwin Management Services (P) Ltd., IN MY OPINION: B. GOVINDARAJAN B.anGovindarajan India-based dangerous goods management, training and consulting firm.

ATTITUDE IS THE BASIS FOR DEVELOPING A HEALTHY COMPLIANCE CULTURE

he regulations from its days of Restricted Articles Regulations (RAR) to today’s Dangerous Goods Regulations (DGR), have fine-tuned themselves and matured through adopting various changes considering the changing needs and the types of goods that need to be transported. However, frequently reported lithium batteries incidents or the recent explosion of ammonium nitrate in Beirut or a fire and explosion of X-press Pearl container ship near Colombo, due to leakage of nitric acid, and other reported dangerous goods incidents around the world make one wonder whether the established regulatory framework for carriage of dangerous goods has served its purpose. Many believe that compliance is just the implementation of the print in the regulations to avoid penalties. Some feel and believe that until such time the authorities knock on the door, there is nothing

to worry about and even if they do, there are alternate ways to overcome the challenge. Compliance is not to satisfy someone; rather it helps to protect our lives, community, assets, and our earth. Commitment to compliance is not an inhibitor but a culture that needs to be planted, raised, cherished, and passed on to the next generation. For such a culture development, the cost of compliance must be a fraction of the cost of non-compliance. The reality is otherwise. While the service providers believe in surcharging for every service related to the carriage of dangerous goods, the authorities rely on astronomical figures as penalties. Both do no good except enhancing the risk-taking ability of the end-users and en-

couraging them to cut the corners. If someone in the industry is asked: ‘why should an organisation train its employees?’ the instant answer could be that otherwise, authorities would levy heavy fines. When the need for dangerous goods regulations training is viewed as a necessity only to avoid penalties for non-compliance, then the training becomes

more of a ritual and the efficacy of the training takes the back seat. Even some training organisations as part of their marketing strategy justify their price by comparing with penalties for not training the employees. The International Civil Aviation Organization (ICAO) is scheduled to implement a Competency-Based Approach to Dangerous Goods

Training and Assessment (CBTA) effective 2023. ICAO believes that the new approach would target specific training needs and pave the way for continuous learning and performance improvement. The focus is on gearing the entire training towards learning through integration of Knowledge, Skills and Attitudes (KSA).

Keeping it safe, secure and simple DGOFFICE is a leader of software solutions and services for dangerous goods and chemical management. The company is headquartered in the Netherlands. The key message about dangerous goods airfreight is the need to keep the cargo safe from the environment and the environment safe from the cargo. That remains the byword for all shipments, whatever the product. Pursuing to be compliant with local and global legislation and regulations ease protection of our surroundings and ourselves. It’s easier said than done, but how does that work in practice? Digital solutions have become a natural habit to carry out safety and compliance easily. There are many kinds of solutions, like platforms, SaaS, automated connectivity, and other initiatives, which keep evolving. These are not only driven by improving safety and compliance, but also to work smarter and smooth the processes. Not to forget, another important motivator in the transport industry is to reduce the footprint that is left behind. For example, by using less paper, or ultimately go fully paperless. Making digital data exchange possible is the answer to this, as well as to speeding up the process to get information quicker. Today, companies should use the Cargo XML instead of the older Cargo-IMP for airline messaging. However, for both messaging standards, the only part in the airfreight shipment documentation process that is not digitised yet is the Notification TO Captain (NOTOC). Currently, NTM messages are sent to ensure the NOTOC data can be loaded onto an aircraft computer. However, this is not a digital format. A NOTOC is basically a manifestation of data delivered from earlier parties. Ideally, the shipper initiates the process digitally, which is possible via DGOffice.net. However, not all shippers are able to do this and therefore still use paper documents for the shipments. Fortunately, the IATA DG AutoCheck enables other parties, such as freight forwarders, ground handlers or airlines, to automatically verify the Dangerous Goods Declaration (DGD) and scan the paper version to a digital format. Nevertheless, there is still no data available for the NOTOC.

ACW 12 JULY 2021

HOW TO KEEP CARGO

Ashok Rajan, senior vice president and head of cargo

IN THE BOARD ROOM

and logistics at IBS Software

AIR cargo has undeniably stepped into the spotlight since the start of the pandemic. Traditionally sidelined by airlines, the sector has been responsible for providing the world with medical, safety, fresh produce and other vital supplies throughout the COVID-19 crisis while passenger transport ground to a halt.

Given cargo’s traditional status, keeping cargo’s seat at the boardroom table and achieving investment in sector innovation and practices may be easier said than done. Maintaining momentum rests largely on these three factors:

Crucially, with cargo yield at unprecedented levels, it’s been a lifeline for the aviation industry: airlines with a strong freight focus were able to quickly and efficiently adapt once the pandemic hit and grounded passenger fleets, adding new freighter schedules including more stopovers in existing schedules, translating into more revenue, and giving them a major head start in the race to capitalise on the critical profit generating opportunity that cargo presents.

Prioritising digital over legacy The air cargo industry needs to demonstrate that Ultimately, the efficacy of providing the evidence for the true value of cargo is not limited to mitigating risk and maintaining revenue during a time of crisis. a mindset shift rests upon having the right systems to As an industry, we must prove that cargo is deserving deliver real insight. of greater investment – that it is a long-term strategic Digitalising and automating air cargo systems, and source of growth and innovation and a core profit moving away from the traditional, more antiquated engine rather than simply an ancillary service. paper-based processes means airlines can gain actionOnly a comprehensive mindset shift that ripples able insight from how their operations are running across the aviation industry with enough impact to and make genuinely informed business decisions that reach the C-suite and, crucially, investors, will allow serve customers better and impact the bottom line. cargo to step well and truly into the limelight as we The pandemic has been the much-needed catalyst head into a new post-pandemic era for travel. for airlines to open their eyes to the true value cargo Establishing a positive differentiation for cargo will has to offer. But to unlock its full potential, the sector hinge on elevating customer experience, providing needs nurturing long-term. transparency and incorporating purpose-built prodCompanies that keep airfreight at the top of boarducts that will ultimately benefit the business as a room agenda will be able to extract healthy profits whole. from a supplementary revenue stream when passenger travel returns to the priority list. Enhancing profits and pricing

COVID-19 restrictions forced passenger airlines into pivoting to adopt a cargo focus over the past year as a means to stay afloat. And despite being late to the freight game, many have started to use new innovations in the sector to get ahead of traditional cargo-focused airlines who are stuck using older technologies. Although air cargo has been a roaring success during the pandemic, and its value has been demonstrated by the likes of the Suez Canal blockage, it is possible that the sector will be relegated from its elevated status when passenger travel begins to open up again in earnest. But to feel the full benefits cargo can offer, airlines should be seriously re-evaluating their business models, and keep freight in the boardroom long-term.

Creating a mindset shift on the value of air cargo

Creating the mindset shift towards cargo requires evidence of value. The vital role of cargo during the pandemic has prompted a re-examination of the traditional pricing model: by evaluating the value of

shipments rather than focusing on passenger capacity alone, airlines can increase overall yields and profits. What’s more, switching to a more dynamic pricing model will allow them to deliver a more innovative service that is able to react to real-time market demands.

Those that fail to give the sector sufficient airtime might make it back to recovery on passenger income alone – but will be missing out on a golden opportunity for growth.

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