ACW 14th December 20

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WORLD ACW Digital is sponsored by AIRPORTS.COM FREIGHTERS.COM

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The weekly newspaper for air cargo professionals No. 1,111

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14 December 2020

“ONE THING IS FOR SURE: NOTHING IS SURE”

AFKLMP fuels the future A

ir France KLM Martinair Cargo has launched the world’s first sustainable aviation fuel (SAF) programme for the airfreight industry, enabling freight forwarders and shippers to reduce their CO2 emissions. By investing in the Cargo SAF Programme, customers will not only help pioneer the use of SAF but will also scale up the SAF market, contributing to a cleaner future for air transport. “Our commitment to reducing CO2 emissions is one of the cornerstones of our cargo strategy. The launch of a SAF programme for airfreight is an important step in our ambitious sustainability roadmap for the coming years. “I invite all our customers to join us in creating a more sustainable cargo future,” said Adriaan den Heijer, EVP of Air France-KLM Cargo and managing director of Martinair.

Cargo SAF Programme The Cargo SAF Programme enables shippers and forwarders to power a percentage of their flights with SAF.

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INSIDE LIEGE AIRPORT HITS A MILLION

LIEGE Airport celebrated a historic and symbolic day as the airport hit the milestone of one million tonnes transported. The milestone was ... PAGE 2

MFAG APPOINTS BEST MAN FOR THE JOB

MITTELDEUTSCHE Flughafen AG (MFAG) has appointed Konrad Best as the new head of business development and strategy from February 1 ... PAGE 3

Customers determine their own level of engagement and AFKLMP will ensure that their entire investment is used for sourcing SAF. When investing in SAF, customers receive a third-party audited report, justifying the purchased volume of SAF in relation to traffic and indicating the reduction in CO2 emissions achieved. By participating in the Cargo SAF Programme, customers not only reduce the carbon footprint but confirm their

commitment to leading the industry towards a more sustainable future.

Viable market for SAF The first step towards a carbon-free future is carbon-neutral growth, which implies there should be no increase in CO2 emissions despite traffic growth. Investing in SAF is a necessary step in this process and one of the primary instruments in reducing CO2 emissions.

For years Air France and KLM have led the way in terms of fuel efficiency and seeking alternative fuel solutions. KLM operated the world’s first commercial flight using SAF on June 29, 2011 with a flight from Amsterdam Airport Schiphol to Paris Charles de Gaulle. SAF is still not widely available. That is why AFKLMP have set up this programme for shippers and forwarders, to stimulate and enlarge the market for SAF.

NORTHERN LIGHTS SHINE ON QATAR

STARTING December 14, Qatar Airways Cargo will launch three-times weekly Boeing 777-300 passenger freighters to Harstad-Narvik ... PAGE 5

Cyber-espionage hackers target COVID vaccine cold chain

THE BBC has reported that, according to IBM, the international vaccine supply chain has been targeted by cyber-espionage. The hacker’s identity is unclear but IBM believe the sophistication of the campaign, which targeted the cold chain, indicates the identity to be of a nation state.

Phishing emails were discovered to have been sent out across six countries, which targeted organisations linked to the Cold Chain Equipment Optimisation Platform (CCEOP) of Gavi, the international vaccine alliance. The attackers impersonated a business executive from a legiti-

mate Chinese company involved in CCEOP’s supply cold chain. They then sent phishing emails to organisations that provided transportation, which contained malicious code and asked for people’s log in details. The information collected could have allowed the hackers to un-

derstand the infrastructure that governments intended to use to distribute vaccines. “Advanced insight into the purchase and movement of a vaccine that can impact life and the global economy is likely a high-value and high-priority nation-state target,” IBM commented to the BBC.

AN-225 MRIYA TO COMBAT SURGE

UKRAINIAN airline ANTONOV Airlines is launching its AN-225 Mriya into commercial operation to support customers in the heavylift ... PAGE 5

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Etihad becomes first airline to join UK’s leading digital aviation research project

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tihad Airways, the national airline of the United Arab Emirates, has joined the £65 million Digital Aviation Research and Technology Centre (DARTeC) consortium, due to open next year at Cranfield University in the UK. As the first airline to join the DARTeC consortium and a leading industry innovator, Etihad’s expertise across the fundamental fields of sustainability, operational efficiency, safety and improved passenger experience will lend valuable insight and real-world operational capability to the DARTeC initiative. Specific topics Etihad and DARTeC will collaborate on include:

• reducing aircraft emissions both in the air and on the ground; • creating safe, secure and efficient airspace; • better understanding of whole-life sustainability impacts of aircraft; • enhancing the passenger experience; • increasing the reliability and availability of aircraft.

Professor Graham Braithwaite, project lead and director of transport systems at Cranfield, said: “We’re delighted to welcome Etihad to the DARTeC project, with construction of our building now nearing completion at Cranfield’s global research airport. As an innovative airline focused on the future challenges of safety, efficiency and sustainability, there is much overlap between Etihad’s aims and the research themes of DARTeC. We look forward

ACW 14 DECEMBER 2020

to working together to deliver the innovation required to enable the industry to ‘build back better’ from COVID-19.” Mohammad Al Bulooki, chief operating officer, Etihad Aviation Group, said: “Etihad has long been known as a leader for innovation in aviation and our role in the consortium reinforces our commitment to driving the industry forward through technology and corporation. “As an innovative, future-focused carrier, membership of DARTeC is a natural fit for Etihad, providing a unique opportunity to expand exploration of key topics across sustainability, safety and passenger experience with industry leading partners. “With this new partnership we hope to bring the best ideas, approaches and projects to Etihad to ultimately ensure that our operations are cutting edge and that our guests have the best possible journey.” Researchers attached to DARTeC are already working with industry on projects to reimagine what airports and airlines look like post-COVID-19, and driving forward innovations in digital airspace and airport infrastructure that will help the UK reach its target of net zero carbon emissions. DARTeC aims to address some of the main research challenges facing the aviation industry, including: • the integration of drones into civilian airspace; • increasing the efficiency of airports through technological

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advances; • creating safe, secure shared airspace through secure data communication infrastructures; • increasing the reliability and availability of aircraft utilising self-sensing/aware and self-healing/repair technologies.

Etihad Airways joins Aveillant, Blue Bear Systems Research, Boeing, BOXARR, the Connected Places Catapult, Cranfield University, Inmarsat, the International Air Transport Association (IATA), the IVHM Centre, Saab, the Satellite Applications Catapult and Thales in the consortium which has also received co-investment support from Research England.


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CEVA LOGISTICS WINS FIVE YEAR CONTRACT WITH MÖLNLYCKE

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EVA Logistics has signed a five year contract with Swedish-headquartered medical products and solutions company Mölnlycke. Starting in December, CEVA Logistics’ multi-user facility at Max Park, Corby in Northamptonshire in the UK, will provide a solution enabling Mölnlycke to be even more responsive to customer requirements and offer an enhanced service. Products will be managed and consolidated within Max Park. CEVA Logistics will receive all products manufactured or sourced from Asia and Eu-

rope. Within the Max Park facility, 5,000 sq m of warehouse space will be dedicated to Mölnlycke. More than 9,000 pallets of stock will be held, picked and packed for onward distribution in the UK. CEVA Logistics participated in streamlining Mölnlycke’s supply chain and identifying a more efficient logistical route resulting in a 41% reduction in the carbon footprint, compared to previous routes based on the company’s former European distribution centre. New racking, shelving and a clean-room have been installed within the CEVA facility

to enable dust-free packaging of products. Additionally, a new healthcare validated WMS (warehouse management system) and quality accreditation for the handling of medical devices – ISO 13485 – are to be implemented within the facility at Max Park. Sam Goodger, CEVA Logistics’ general manager comments, “We have been able to demonstrate a clear understanding of Mölnlycke’s business and designed a cost-effective solution over the long-term which shows our commitment to continuous improvement. “We are delighted to have been trusted with their business in the UK and believe

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that together we can enable Mölnlycke to be even more responsive to their customer requirements”. Commenting on the distribution centre, Nick Rothwell, general manager UK&I, Mölnlycke says: “Our aim is to ensure the healthcare professionals we work with in the UK have the tools needed to continue patient care, even in the uncertain times ahead. “We see the UK distribution centre as essential to how we operate here in the UK as a way of minimising the impact that wider national and global situations may have on our product supply.”

ACW 14 DECEMBER 2020


NEWS

The GSA that roared

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DELTA: ‘RAPID DISTRIBUTION’ OF COVID-19 VACCINES CRITICAL

D A US GSA has teamed up with a European all-cargo carrier to introduce new capacity on the US – UK lane. JFK-based Aviacargo, a leading airline cargo management company, has teamed up with European Cargo in both Western Europe and North America to deliver an A340-600F offering 14 PMCs on the lower decks to carry up to 45 tonnes. The service operates five flights a week on days 2,3,4,5, and 6. Aviacargo president Michael Cox says: “We serve all US gateways from JFK and additionally we will offer both Montreal and Toronto in Canada. There will be a wide range of cargo onboard all flights and additionally that will include produce such as fish and e-Commerce. We are also looking at pharma as we are receiving many requests from customers and we hope to be able to make an announcement in due course. “Because we’re a data-driven organisation, all our teams operate across data in the cloud with operations centrally controlled using a ‘follow the sun’ mentality so we can provide effective coverage throughout the day wherever our customers are based. “We will be in a position to handle vaccine shipments and that’s especially important with regard to our handler at JFK as they are the only GDP compliant handler at JFK.” Cox is British-born so has a good insight into the UK market. He says: “I left the UK for New York 23 years ago to set up the company’s US operation.” He considers that Europe is “certainly a dynamic market and in addition to the UK there are clearly a number of other key cities which could provide interesting opportunities. Wherever they arise we will actively seek to bring them into our network.”

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elta has proven capabilities for transporting COVID-19 vaccines after successful shipments earlier this year. With large warehouses and cooler facilities in Atlanta, Detroit, Los Angeles, New YorkJFK and Seattle, and a network of 49 certified Pharma airports across the globe, Delta has capabilities in place to support vaccine shipments at home and around the world. In addition to robust domestic shipment capabilities to support rapid distribution within the US, Delta has a broad and nimble global distribution function in co-ordination with Air France KLM Martinair Cargo and Virgin Atlantic Cargo that enables end-to-end compliance and assurance for customers across their broad network. “Effective and rapid distribution of the vaccines as they reach final approvals is one of the most critical elements in containing the virus,” said Rob Walpole, vice president, Delta Cargo. “That is why we created a vaccine task force months ago charged with understanding requirements and working with healthcare and pharmaceutical experts, building scalable solutions to support the industry. After successfully shipping test vaccines throughout the summer and fall we are confident in our

capability and stand ready to help ensure approved vaccines are broadly distributed.” Delta has introduced enhancements to existing pharmaceutical delivery protocols to support safe, swift distribution, including: the highest level of access and boarding priority; a Vaccine Control Tower with 24/7 centralised monitoring and customer reporting; and pharma-ready cargo-only charter options for operations within and outside the airline’s existing network.

AEI Split Scimitar winglets given FAA green light

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eronautical Engineers (AEI) has received an FAA amendment which allows the company to apply their con-

version to B737-800s with Split Scimitar winglets. The winglets were developed by Aviation Partners Boeing. AEI is

the first STC conversion provider to achieve this important approval and unlike other providers will not charge an additional fee to convert aircraft with Split Scimitar winglets. Currently, there are approximately 853 B737-800 aircraft retrofitted with the winglets, so this approval now substantially increases the candidate aircraft available for passenger-to-freighter conversion by AEI. “AEI is once again leading the industry by providing advancements that matter to operators and aircraft owners,” commented Robert T Convey, AEI senior vice

president sales and marketing. AEI’s B737-800SF is capable of a main deck payload of up to 52,700 lbs (23,904 kg) and includes eleven full height 88” x 125” container positions, plus an additional position for an AEP/AEH. The conversion also incorporates new floor beams aft of the wing box, a large 86” x 137” Main Cargo Door with a single vent door system, and a flexible Ancra Cargo Loading System. The AEI B737-800SF also includes a rigid 9g barrier, five supernumerary seats as standard, a galley and full lavatory.

Liege Airport hits a million tonne milestone come since then with an almost equal distribution between import and export. This is the result of the work of our entire cargo community and I would like to thank and congratulate our staff and all our partners once again.” In addition to the European network TNT, which has been gradually consolidated, its intercontinental connections now make Liege Airport an essential hub for many operators. Partoune adds: “We connect more than 250 airports around the world with Fedex, Qatar Airways, Ethiopian, AirBridge Cargo, CAL, Astral, Air China Cargo, SF Express, Icelandair and others. “Liège has become a world-scale village for all high-value goods that must travel quickly and far. The development of the airport is carried out entirely in compliance with the regulatory framework (PDLT), which is determined by the region.”

LIEGE Airport celebrated a historic and symbolic day as the airport hit the milestone of one million tonnes transported. The milestone was reached with the landing of an aircraft from Russian company AirbridgeCargo chartered by the Chinese company HongYuan and handled by the French company WFS and the Belgian company Belgium Airport Services (BAS). This international logistics chain is a fine example of the development of Liege Airport. Since 1996, with the arrival of the first carrier Cargo Airlines (CAL), the airport has focussed its strategy on “full cargo,” which involves working with airlines that carry only cargo on their aircraft. The arrival of TNT in 1998 was at the roots of this development and since then many companies have joined Liege Airport, as Luc Partoune, CEO, explains: “In 1996, we transported just under 8,000 tonnes. The figure of one million tonnes shows how far we have

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Delta has extensive experience in shipping vaccines and was the first US passenger airline to receive IATA’s Center of Excellence for Independent Validators (CEIV) Pharma Logistics Certification at the airline’s headquarters and Atlanta warehouse. The carrier already offer four tailored pharmaceutical shipping options which meet specific temperature requirements for vaccines ensuring integrity through the entire journey.

ACW 14 DECEMBER 2020

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MFAG appoints best man for the job MITTELDEUTSCHE Flughafen AG (MFAG) has appointed Konrad Best as the new head of business development and strategy from February 1, 2021. He has held the position of digital manager at Munich Airport since the beginning of 2016 and is responsible for new digital business models and a digital B2C strategy. At MFAG he will develop business at Dresden and Leipzig/Halle Airports and make determined use of all the opportunities offered by digitalisation, among other things to benefit the airports’ customers. Best will report to Götz Ahmelmann, CEO of MFAG. Best says: “MFAG has set it-

self ambitious goals. I’m an optimist. “Digitalisation in particular and new partnership models derived from it offer a wealth of opportunities for the Central German airports.” Ahmelmann comments: “I’m delighted that we’ve filled this position so quickly.”

TUI, Condor and SunClass Airlines now live on CargoAi CARGOAI is increasing its offer to freight forwarders by making real-time prices and electronic bookings available on its platform for major leisure carriers: TUI, Condor and SunClass Airlines. This roll-out has been made possible thanks to the support of ECS Group, the GSSA of these airlines in Total Cargo Management (TCM). Pursuing its digitisation strategy for airfreight, CargoAi offers its users access to a variety of air transport solutions anywhere in the world. “These three airlines offer a multitude of destinations. Our users can now benefit from this by reserving their capacities on our platform in a few seconds,” says CargoAi CEO Matthieu Petot.

Matthieu Petot For ECS Group, the approach also aims to provide a premium service to its airline customers and above all, to offer them an additional sales tool for their cargo capacities. Cédric Millet, chief strategy and digital officer

at ECS Group, says: “Our customers need us to support them in new ways to maximise their income, and digitising the distribution processes is one of them. We therefore connect to all major e-booking platforms in the market to sell the cargo capacities of airlines under Total Cargo Management contract in a more efficient way.” This is an important step for CargoAi, which is aiming for a “smooth, simple” digitisation of the industry. “We offer a turnkey service to our customers by doing all the technical work upstream, without the need for any investment on their part. “These are the types of actions that will lead to a digitised industry, equal to its importance in the world economy,” says Petot.

COMEXAS Ghana powers up Takoradi

FREIGHT forwarder COMEXAS Ghana has handled the offloading and delivery of a 50-tonne generator/rotor from an Antonov 124 in Accra. The cargo was delivered to the Takoradi Power Plant, 17 kilometres east of Sekondi-Takoradi, Ghana. COMEXAS Group are logistics experts with extensive knowledge in handling a range of project cargo. They are Project Cargo Network members in Ghana and the Ivory Coast.

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Brexit: UK manufacturers VIRGIN ATLANTIC CARGO COMMENCE must be prepared A top logistics head is urging logisticians at UK manufacturing businesses across the UK to heed advice so they are prepared for the new reality when the Brexit transition period comes to an end soon. Chris Mills, director of account management, transportation at CH Robinson Europe, the multi-modal transportation platform provider, commented: “Not all UK businesses are prepared for the changes the end to the transition period will bring to their customs procedures and may still wonder what it could mean for their own shipping processes. A major reason for some lack of preparedness could be attributed to Covid-19 with the pandemic demanding so much business attention that it has left little time for planning for next year. “With just a few weeks until the transition period with the EU, time is running out. This is why we have gathered critical, up-to-date information, comparing the current trading situation to the landscape as we see it post-the end to the transition period to help those shipping goods to the EU to stay on top of developments.” Mills points to a number of considerations manufacturing businesses will need to be taking action on if they have not already. “UK firms that export to the EU will need an Economic Operators Registration and Identifi-

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cation (EORI) number to move goods between GB and the EU. It can take up to one week to obtain one, so companies need to apply now. “The UK will become a ‘third country’ when the transition period ends which will mean extra administration chores for companies that trade between the two parties. Numerous customs declarations will need to be submitted when trading with EU countries, and relevant duties may have to be paid. Failure to comply may lead to shipments being delayed or blocked.” Mills added: “Logisticians should familiarise themselves with international commercial terms and conditions, such as Incoterms 2020. Mills also warned UK transport companies about the implications of VAT, customs and shipping costs. “The EU VAT scheme won’t be valid for a ‘third country’ and VAT will need to be paid in the UK when exporting from the EU. The final arrangements on VAT are dependent on the outcome of the negotiations. Whilst UK businesses will no longer have to collect any VAT on products sold to EU customers, which could positively lower prices, they will also no longer benefit from the EU VAT refund system. For UK businesses importing goods, VAT will be levied on imports of goods from the EU.

NEW PAKISTAN ROUTE VIRGIN Atlantic Cargo has commenced flights between the UK and Pakistan, supporting growing trade volumes between both countries. This is the first time that Virgin Atlantic Cargo has flown to Pakistan. The new services will add over 66 direct flights to Pakistan each month, expanding the direct UK to Pakistan market by 90% in December alone. The UK is the largest export market for Pakistan in Europe, transporting high volumes of goods such as textiles, apparel and machinery. Trade in goods and services between the UK and Pakistan is worth some £3.3 billion a year, rising 4.7% year on year in 2019. The UK is the third biggest global market for Pakistani exporters after the US and China. “Business opportunities between the UK and Pakistan present an exciting new prospect for our customers, and the whole team look forward to our upcoming launch,”

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commented Dominic Kennedy, managing director of Virgin Atlantic Cargo. “The import and export market for goods between the UK and Pakistan is extremely healthy, with over 114 million kgs of cargo moving between Europe and Pakistan each year. Arshad Wali Muhammad, group director, Gerry’s Group, commented: “Virgin Atlantic Cargo’s flights to Pakistan

offer a fantastic opportunity for businesses to expand their export base by having direct connection to Europe and North America via Manchester and Heathrow. “The two destinations in the UK will be a gateway to reach over 300 networks of destinations worldwide. With Gerry’s as GSA for Pakistan, we look forward to including this successful new service within our network.”

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AN-225 Mriya to combat surge in heavylift capacity constraints

UKRAINIAN airline ANTONOV Airlines is launching its AN-225 Mriya into commercial operation to support customers in the heavylift market where capacity is in high demand. The Mriya, which has onboard loading equipment and a cabin which can be pressurised, will complement ANTONOV’s fleet of seven AN-124s, two with a capacity of up to 150 tonnes.

Earlier in the year, the AN-225 was actively involved in delivery of humanitarian and medical cargoes and safely transported more than 1,300 tonnes of such cargoes to fight the COVID-19 pandemic. “There is a surge in demand for AN-124 aircraft at the present time and therefore ANTONOV Airlines is doing its best to help customers in this difficult

situation and support them worldwide, providing the required airlift capability,” said Andriy Blagovisniy, commercial director, ANTONOV Airlines. “Taking into consideration the current very limited availability of AN-124 aircraft on the market, we are giving priority to time-critical cargo and to give additional lifting capacity, we will enter our AN-225 aircraft into commercial operation after running routine maintenance. “We are a responsible airline and put flight safety first, ensuring the proper maintenance and airworthiness of our entire fleet, working with full technical support from holders of AN-124-100 and D-18T engine Type Certificates and conforming to our safety policy, as well as national and international regulations. “Proper maintenance and lifetime extension are important to ensure the safe operation of both the aircraft’s engines and airframes.” The Mriya, meaning ‘dream’ in Ukrainian, has 242 world records to its name and is the only one in existence. ANTONOV Airlines recently renewed its membership to leading international breakbulk specialist group, The Heavy Lift Group (THLG), receiving 100% of the votes from existing members.

Northern lights shine on Qatar Airways Cargo new passenger freighters to Harstad-Narvik STARTING December 14, Qatar Airways Cargo will launch three-times weekly Boeing 777-300 passenger freighters to Harstad-Narvik Airport (EVE) located in the Evenes municipality of northern Norway. The airport serves the towns of Harstad and Narvik in Nordland county. The three-times weekly freighters will depart on Mondays, Tuesdays and Thursdays, providing over 150 tonnes of cargo capacity for exporters from Northern Norway each week. Seafood and salmon will account for the majority of exports on these flights. There will also be 50 tonnes available every week for imports from the airline’s network into Harstad-Narvik Airport. Guillaume Halleux, chief officer cargo at Qatar Airways, said: “In co-operation with NordicGSA, our dedicated GSA for Norway, we are pleased to introduce cargo capacity and support northern Norway’s seafood and salmon exporters who will benefit from direct connection to African, Asian and Middle East markets via Doha. “Our state-of-the-art Climate Control Centre has dedicated storage areas for perishables transiting the hub while the use of reefer trucks ensures a seamless cool chain for all perishable shipments.” Stig Winther, CEO at Perishable Center Nord, said: “Perishable Center Nord AS is very pleased to co-operate with Qatar Airways Cargo. “Operating more direct routes to and from the market will mean a lot for fresh seafood businesses from the north and quality, freshness and competitiveness will definitely improve. We are looking forward to start up, develop and together with Qatar Airways Cargo make seafood from northern Norway more available globally.” Amidst the global pandemic, Qatar Airways Cargo has continued to operate its scheduled freighters, passenger freighters, belly-hold passenger flights and charters.

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CARGO MARKET FOCUS 2021

CARGO IN 2021: “ONE THING IS F T

his year may have been a challenging year for all and probably did not turn out as predicted in last year’s ACW cargo market focus 2020. However, with vaccine distribution well underway, 2021 is already looking brighter than the past year. ACW asked some of the industry’s professionals what they think the next year will look like for air cargo. Steven Polmans, (top right), director cargo and logistics at Brussels Airport Company stated that 2021 will be “a challenging and interesting year for air cargo”. “Beginning 2021, the transportation of the Covid vaccines will give our industry another boost. This is a unique opportunity, a challenge we better manage as best as we can, since the whole world will be watching us. And with the vaccines getting distributed, we can also expect passenger traffic to gradually grow again. And although it will take a few years, the biggest jump forward we can expect to happen in 2021,” explains Polmans. But the year will not be without its challenges. He adds: “For many in our industry, especially those also depending on passenger traffic such as airlines, airports or handlers, 2021 will still be a very difficult year. Not everybody in our industry benefits in the same way, and this will cause additional challenges in our collaborative approach needed as a fragmented industry.

Growth in capacity “Already today, we see certain regions and economies recovering better and faster from the pandemic. Also growth in capacity is today stronger in certain markets and on certain trade lanes, again facilitating a quicker economic recovery.

As a result we might expect for example a better outlook for our industry in Asia compared to Europe. But one thing is for sure: nothing is sure next year. Flexibility and agility will once again be needed from all of us,” adds Polmans. Sebastiaan Scholte, (middle right) newly-appointed CEO of Kales Group believes the “importance of freighters and air cargo has never been clearer in this crisis and will remain for the foreseeable future. Much needed digitisation has accelerated during the crisis and will most likely continue next year.” Scholte hopes that “with a bit of luck in many countries we would be back to the “old normal” by Q3.” “In the meantime capacity will be short in the first quarter and maybe even in the second quarter of next year, resulting in high yields and deployment of ‘preighters’. “In the second half of 2021 yields will probably start to decline since people gradually will start to travel again and capacity will therefore come back,” Scholte explains. “There inevitably will be less business travel since much of the professional workforce will have become accustomed to remote working. Many business travellers fly long haul on wide body pax airlines. “These routes are ideal for cargo since they are destinations where trade goes to or from, and moreover the wide body bellies are more cargo friendly. If this passenger long haul capacity will not come back to its previous levels in the coming years, there will be a need for freighter capacity. The big question will be if the yield decline caused by extra capacity coming back in service in the second half of 2021 will be offset by the same or bigger increase in volumes.”

KEEP LEANING FORWARD!

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he vaccine surge will be a GLOBAL LOGISTICS TSUNAMI, with air cargo playing a critical strategic role. Air travel will keep rising slowly, though will remain below par until 2022, sadly. Air passengers are reluctant to fly — air cargo is not! In fact, the global trend of working and shopping at home is turbo-charging air cargo with e-Commerce, and the freighters are definitely rising to lead the way. World trade is coming back on many fronts, and air cargo is the best vehicle for just-in-time inventories and other time-critical actions in the supply chains. 2021 will be a robust year for air cargo overall, albeit still fraught with perplexing uncertainties because nobody really knows yet the COVID-19 outcome. We believe IATA’s forecast that the strategic underpinnings of growing demand are quite positive for air cargo in 2021. Our own internal forecasts for ACL Airshop next year are confident for continued steady growth, increase our large ULD inventory

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around the world, “Grow the Network” by adding new hub locations, invest in our new technologies, maintain high-speed responsiveness for customers, and take really good care of all our people. ACL Airshop has a lot of momentum right now: we will KEEP LEANING FORWARD.

Steve Townes, chief encouragement officer, ACL Airshop

Glyn Hughes, (bottom right), global head of cargo at IATA, also warns the world in 2021 will be a very different world from 12 months ago and the air cargo industry will have to adapt to reflect just that. “Many influences have changed the fabric of society, from how we work, how we interact, how we consume goods to how we deal with our own and each other’s health and safety,” Hughes explains. “The COVID-19 pandemic generated the COVID economy which created consumer demand for PPE products which were previously restricted for use within hospitals and health facilities and it generated an even greater acceleration towards e-Commerce. “As we head into 2021, we anticipate the global distribution of several vaccines with varying specific supply chain handling requirements, we see the continued growth of ecommerce and we see economic regeneration following the severe impacts experienced during 2020.

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incomes. “The air cargo industry played a vital part in the fight against the covid pandemic, it will play a vital part in the covid vaccination challenge and it will play a vital part in the subsequent economic resurgence. Air cargo makes things happen.”

Positive demand “So, air cargo will continue to benefit from positive demand scenarios whilst balancing the continued reduction of passenger networks which account for about 50% of overall capacity. “We can therefore anticipate the continuing situation of passenger aircraft operating cargo only operations until global passenger demand results in the resumption of global passenger networks. “Freighter fleets will continue to operate at high levels of utilisation and combination carriers will continue to focus on maximising cargo revenues to supplement reduced passenger-based

Embrace the “New Normal”

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he year 2020 served the world a nasty COVID-19 blow. The pandemic which started in Wuhan, China has had a ripple effect and penetrated every corner of the world causing great loss of life and totally disrupted economies. For us in cargo handling, the pandemic disrupted our operations through the limitations on movement of people and cargo due to the restrictions imposed by various countries. It also came with capacity challenges leading to high freight rates. In Kenya, horticultural players suffered great losses due to lack of capacity to uplift shipments resulting from reduced flights. However, the year 2021 comes with a very positive outlook. With the world having embraced the ‘New Normal’ 2021 is likely to offer better economic prospects going forward with hope of recovery from the 2020 slump. This is likely to be boosted by the anticipated COVID-19 vaccine shipments for distribution within Kenya and the region. I also foresee a steady recovery emerging albeit gradually in the volume of other cargo categories such as perishables and general cargo. In my estimation, I see an upward movement in cargo volumes at a range of above 80%

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of the pre-COVID situation by the end of the 1st quarter. The best approach is to adapt to the ‘New Normal’ by observing the COVID-19 safety protocols and thrive in spite of the presence of the COVID-19 that is envisaged to be with us into the near future.

Siginon Aviation managing director Meshack Kipturgo, Kenya


CARGO MARKET FOCUS 2021

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We are doing all we can to prepare

WHILE 2020 has shaken up all of our benchmarks, ECS Group has demonstrated its capacity for resilience by seeking to respond to the unexpected, and above all its ability to adapt to the individual situations of each of our partner airlines. We have called on all our energy and solutions to provide the best possible support. At ECS Group, we are all driven by this same desire – a desire that has allowed us to accelerate all the processes that are under way. Our investments in a range of intelligent solutions – whether it’s our best-in-class BI tool, ultra-high performance IT processes, or more generally our digital transformation in line with our industry’s own transformation – have allowed us to keep a steady hand on the tiller over the past six months. By taking an even more proactive approach, we’ve capitalised on our strengths to make even further progress. This is why 2021 will only be the beginning of a new transformation. We must become stronger and more experienced. As well as our proven TCM expertise, and as well as our ability

to diversify, we want to optimise future opportunities by strengthening our digital skills in order to seek out new hybrid solutions and to respond to the new needs of our clients. And naturally, training is both essential and a core part of this process. When ECS Group invests in progress (whether in terms of our charter specialism, our skills in pharma management or our BI specialism), our 1200 employees all over the world come together to make it a success. We can’t predict what will happen in 2021, but we are doing all we can to prepare, using our experience and working with our airlines to overcome these new challenges.

Adrien Thominet, CEO, ECS Group

Supply-demand dynamic to continue until at least Q1/2 2021

T

he year 2020 has been unprecedented and has had a significant impact on the airline industry. Market pressure and capacity constraints in the past period were driven mainly by the reduction in passenger flights. We have, however, seen volumes matching last year’s levels in recent weeks. At this stage, we expect the current supply-demand dynamic to continue until at least Q1/2 2021. Once passenger business recovers, we will also gradually see more capacity in the market. There are several forecast models, however, and we expect to see the dynamic starting to shift in the second half of Q2.

aircargoweek.com

In the meantime, the incremental business driven by transport of COVID-19 vaccines is likely to lead to additional pressure. As the required flows and airfreight volumes are as yet unclear, it is hard to predict what impact this factor will have on the airfreight market as a whole and, consequently, on the outlook for 2021. AFKLMP Cargo is ready to transport COVID19 vaccines. We serve a network of more than 110 long-haul destinations and have not only invested in extra cold storage and monitoring & intervention management, but also initiated partnerships within the supply chain. Apart from growth in the pharma segment, we expect to see continued growth in the express/e-Commerce segment in 2021. To facilitate that growth, we have taken significant steps by investing in state-of-the-art sorters at both CDG and AMS. We also offer a unique express service via our sister company SoDExI at CDG. We also believe that we must pursue our commitment to sustainability, which is why we recently launched our Cargo SAF programme for airfreight customers. Close collaboration in the logistics chain will be more important than ever in 2021, giving us a better grip on whatever logistics challenges we face.

GertJan Roelands, SVP of sales and distribution at Air France KLM Martinair Cargo

ACW 14 DECEMBER 2020

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