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The weekly newspaper for air cargo professionals No. 1,254 30 October 2023

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INSIDE DIGITAL FUTURE FOR DELIVERIES ...

A GROWING HUB FOR AIRFREIGHT ENDEAVOURS

SEEING the opportunity offered by technological innovation, IAG Cargo has been making substantial investments in digitalisation ... PAGE 2

n the world of international cargo transportation, Prime Group has built up a conglomerate of enterprises dedicated to seamless cargo transportation services globally, with its core values centred around accomplishment, reach, and the quality of services provided. With Southeast Asia emerging as one of the fastest-growing economic regions globally, Prime Group has recognised its crucial role in the company’s continued expansion. “With a burgeoning middle class and increasing consumer spending power, Southeast Asia is becoming a very important market for export South America Products,” Elizabeth Cotto-Poueriet, Marketing Manager, said. Prime Group is looking to meet this increased demand by operating across a network of key airports in Southeast Asia, including Singapore, Bangkok, Kuala Lumpur, Manila, Jakarta, Ho Chi Minh, and Hanoi.

Anticipated growth In Southeast Asia, Prime Group primarily transports perishable products such as flowers, fruits, and vegetables exported from South America, supported by its diverse range of facilities. Across its services, Prime Group provides customers with warehouse management and ULD control, charters and transport, cold storage facilities, ground handling, and more. “Our state-of-the-art cooler and qualifications in handling perishable products ensure the efficient handling and transport of time-sensitive shipments across the region,” Cotto-Poueriet highlighted. The company’s airfreight volumes in Southeast Asia have shown a consistent upward trend. In 2022, they handled 1.5 million kilos of cargo, with a 10% growth expected across the whole of 2023.

Advancing efficiency Prime Group operates wide-body aircraft to all Southeast Asian destinations, offering swift transit times from South America, showcasing their commitment to efficiency and technology.

“We operate with widebody to all these destination with a transit time from South America between 24 – 36 hours,” Cotto-Poueriet continued. “Our partners are 100% committed to managing capacity and scheduling to meet demands, with this year’s onetime performance at 95%.” The company is also actively involved in sustainability initiatives, with the companies they work with championing ESG (Environmental, Social, and Governance). “All our partners are part of ESG programs not only sustainable aviation fuel but also social initiatives,” Cotto-Poueriet added.

Smooth supply chains Acknowledging the challenges related to handling cargo around the globe, Prime Group is braced for the issues that arise through fluctuating rates and imbalances in freight. To ensure seamless airfreight operations in Southeast Asia, Prime Group collaborates closely with local partners, authorities, and customs brokers who understand the intricacies of the region. “We are capable of adapting quickly to any disruption in the logistics sector using our knowledge and finding alternatives to our customers,” CottoPoueriet said. “Prime will be and important partner in the logistics to and from Southeast Asia to South America.”

MAKING TRADE TRANSPARENT ...

WITH increased focus on ensuring efficient supply chains, BlueBox Systems is looking to deliver holistic visibility to the logistics ... PAGE 4

SUPPORTING SMOOTH ...

WITH extensive facilities and a strong Asian network, Kerry Logistics Network (KLN) is in a prime position to help UK customers ship a range of ... PAGE 5

Expanding in Southeast Asia 2023 has been a year of challenges for the airfreight industry, with economic factors impacting logistics companies. Looking ahead to 2024, Prime Group anticipates a year of recovery as they continue to navigate the landscape of international cargo transportation. Focused on the booming potential provided by Southeast Asia, Prime Group recognises that the secret to success is being ready to evolve where needed as consumer demands, expectations and opportunities change. “The market is changing fast and the adaptation to the charges will be the success of the logistics companies,” Cotto-Poueriet stated.

Building a platform for progress ...

SCALING UP HONG KONG-LIEGE ...

WHEN it comes to e-commerce, speed is the key. And while most e-commerce buyers will not think twice about how ... PAGE 6

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NEWS

Digital future for deliveries SEEING the opportunity offered by technological innovation, IAG Cargo has been making substantial investments in digitalisation to enhance our online platform, improve customer interaction, and expand it digital initiatives. Working on seamless integration of digital projects, IAG Cargo is focused on enhancing track and trace capabilities and gathering insightful data related to booking dimensions. “Digital transformation is fundamental to the future of AZura International, Robert Denholm House, Bletchingley Road, Nutfield, Surrey RH1 4HW, United Kingdom

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the airfreight industry, and we’re committed to evolving with technological advancements amidst changing market dynamics,” John Cheetham, Chief Commercial Officer at IAG Cargo, said. “We’re utilising various digital technologies and tools to streamline our operations. This is no more evident than in our new cargo handling facility, New Premia, that we opened at our London Heathrow hub earlier in the year.” With bespoke IT system upgrades and integrations that optimise how freight is moved and allocated within the facility, this state-of-the-art technology has been designed to make IAG Cargo smarter and faster. The automated Material Handling System allows cargo handlers to manage the flow of productivity through New Premia – enabling double the amount of cargo to be managed daily. Furthermore, cutting-edge air-curtain technology creates a thermal barrier and regulates temperatures within New Premia, ensuring cargo is kept at the appropriate temperatures.

Simplifying cargo clearance Through the digitalisation of documentation and paperwork IAG Cargo offers a more seamless end-to-end service for its customers, with improved messaging and data quality by reducing the chance of human error. By continually investing in enhancing the functionality of IAGCargo.com, the carrier hopes to create a more robust platform for direct customer interaction and enhance the accessibility of its extensive network for customers, wherever they are in the world.” “At IAG Cargo, we are actively working towards achieving 100% e-AWB adoption throughout our network to eliminate the need for paper documents by the end of the year as part of our digitalisation programme - Destination Digital,” Cheetham stated.

“Digitalisation boosts customer experience by streamlining operations to improve organisational capabilities, enhance data management, and increase efficiency,” he added.

Smooth supply chain As an industry, airfreight has moved at a slower pace in terms of its digital offering. However, IAG Cargo is confident that the pace of digital transformation in the industry will continue to evolve driven by both technological advancements and changing market dynamics. IAG Cargo is making substantial technological investments, migrating to a cloud-first approach, and enhancing our online booking capabilities. The carrier also understands the importance of collaboration with external stakeholders, for example through IAG’s Hanger 51 accelerator programme which gives start-ups the chance to develop and pilot innovative solutions for global business transformation plans. One significant investment involves the implementation of a new Material Handling System at IAG Cargo’s Madrid hub – which enhances efficiency and automation of cargo handling processes. Additionally, they are in the process of moving to a cloud-first approach, with the goal of having 100% of their applications migrated to cloud environments in the nearby future which will provide them with scalability, flexibility, and improved data accessibility. “Specific challenges facing IAG Cargo include the need to integrate all our digital initiatives seamlessly, with a particular focus on enhancing track and trace capabilities and gathering more insightful data related to booking dimensions,” Cheetham explained. “This drives efficiency into the business and ultimately enables us to offer a better service to our customers.” “Ongoing technological investments are vital to meet customer demands and stay competitive,” Cheetham continued.

ACW 30 OCTOBER 2023

NEWS

Making trade transparent “Many companies are concentrating on AI solutions capable of not only collecting data but also providing valuable insights into significant patterns and process optimisation. However, the industry still lags behind sectors like finance and Industry 4.0 and is still run mainly on legacy IT systems,” Schulze stated. “Organisations in the airfreight sector should pinpoint strategic areas for improvement that align with their business needs,” he explained. “They should identify digitalisation market players capable of addressing these needs, enabling rapid piloting and scalability. Collaborative partnership programs involving industry suppliers, users, and customers can foster a competitive environment that accelerates the adoption of digitalisation.”

Bringing data together The unified platform presented by BlueBox Systems offers all the mentioned visibility aspects for both Air- and Ocean Freight in one portal, that can be accessed by all parties involved in the supply chain, even across enterprises. Additionally, this platform is available in a white label version so, branded by a customer who can offer is as his own service. For example, the logistics association WACO System is using the white-label solution of BlueBox Systems, so that the company can offer its members BlueBox Air and Ocean. For the WACO-members, the system is WACO branded, but BlueBox Systems delivers the information. “Whether using the ocean or air freight solution, one important aspect is the possibility for WACO-members to collaborate through the platforms,” Schulze stated. “They can share shipment related comments and documents in the detail view of a shipment and combine them with the accurate shipment data. So, if two members work together on one shipment, the Wacoversion of BlueBoxAir or BlueBoxOcean is the best tool to do that.”

Keeping you up-to-date

WITH increased focus on ensuring efficient supply chains, BlueBox Systems is looking to deliver holistic visibility to the logistics industry. BlueBox Systems empowers logistics and supply chain firms with real-time air and ocean freight cargo tracking, including CO2 emissions monitoring. The company’s approach involves a robust platform that aggregates data from over 130 global airlines. By analyzing these extensive datasets, BlueBox Systems provides highly accurate information about each shipment’s current location, estimated time of arrival and departure (ETA/ETD), potential risks like split shipments, CO2 emission levels, country-to-country performance, and identification of disruptive trade lanes. “We offer a seamless and scalable system, complete with a user-friendly portal with a fast and intuitive interface, our web-based platforms BlueBox Air and BlueBox Ocean and tracking API for both air and ocean freight,” Martin Schulze, CEO of BlueBox Systems, said. “Furthermore, the portfolio is complemented by a white-label solution for companies that want to use its technology to offer their own air cargo management system to their customers.”

Transparency adds value The key challenges every industry and company faces is to align transparency, efficiency and digitalisation with the overall strategy and prove its value for the business. This is especially true when it comes to transparency. “Our strategic target is to provide our customers with a “holistic visibility”, or as we call it a 360° view on their business. Visibility is traditionally seen in functional silos or for individual process instances,” Schulze added. “For example, “Where is my shipment is the transportation chain” – a 360° view would include information on the status of the goods (like temperature), the ecological footprint, or the costs associated with the transportation” he continued. “But even further it will consider what the information on a single shipment tells about the actual performance of a company or an entire supply chain with multiple companies involved.” When it comes to concrete implementation, data quality and effective information organisation, readiness to adopt new methodologies and practices are key success factors. “Problems are usually in the interfaces between organisations or functions, so providing this holistic view will ultimately make the difference and provide the most value to any company, when it comes to visibility,” Schulze highlighted. “This is the target, and our platform already provides a lot of functionality and information in that regards, but the journey continues.”

Speedy integration The digitalisation of the airfreight industry has experienced rapid growth in the last years. The disruptions experienced during the pandemic showed that new solutions were necessary to address global challenges. These solutions range from predictive platforms for estimating cargo arrival times to remotely operated aircraft enabling same-day delivery options to remote locations.

ACW 30 OCTOBER 2023

Showcasing its real-time data tracking services, BlueBox Systems pointed to several use cases it had recently with customer in Thailand and Chile. Using BlueBox Systems’ air freight tracking programming interface, the logistics service providers, ThinkPrime and Delpa Group, each get the ability to integrate BlueBox Systems’ tracking data into their own platform, allowing the independent applications to communicate with each other and share data in real time. This gives all parties along the supply chain access to the most up-to-date and accurate information. For example, carriers gain access to real-time shipment data to optimize routes and allocate resources efficiently. Similarly, manufacturers can get up-to-date shipment tracking information so they can plan production and proactively manage inventory. At the same time, the API solution enhances security by providing controlled data access that ensures only authorized parties can access and use shared information. Finally, the API streamlines processes by fostering automation and seamless system interactions, reducing manual intervention, and improving overall operational efficiency.

Green goals For BlueBox Systems, the opportunity to collaborate with other players and enhance its solution with added value to solve business needs of customers is a crucial component of its current model. In order to provide that unified platform, the company is collaborating with industry leaders when it comes to Carbon Emission calculation. “Our aim is not to re-invent the wheel but create solutions for the visibility needs of a heterogeneous customer base and provide the best solution and service available on the market,” Schulze said. “At BlueBox Systems, we’re charting a greener future for air cargo in Southeast Asia. Our advanced CO2-tracking capacity is revolutionizing the industry by providing real-time insights into carbon emissions, allowing businesses to make more sustainable choices,” he stated. “We’re proud to announce that we are gaining an ever-increasing number of clients from Asia, demonstrating the growing recognition of our commitment to environmentally responsible logistics solutions.”

Hubert Van De Laaken, CEO of Euro Cargo Aviation and Changi Airport Cargo team – ACW World Air Cargo Awards 2023

Established in 1997, Euro Cargo Aviation has built a strong reputation in the cargo aviation business as an independent GSSA. Offering pro-active communication with airlines and forwarders with local expertise with global market knowledge, the company recognizes that is role is much more than sales and marketing. It’s important that the airline’s product is supported, and the cargo is managed throughout its journey from arrival in our care until delivery to the client. Stuart Holland Vice President Euro Cargo Aviation Euro Cargo Aviation has created “service hubs” across its network that manage the flow of shipments for airlines and communicate to the customer along the route. “These service centres are key to ensuring the agent is getting clear updates about their shipments and can be confident that we are managing the end-to-end process on behalf of the airline,” Hubert van der Laaken, CEO of Euro Cargo Aviation, said.

Importance of Personal Customer relations

This industry changes often and supply chain demands, and process will always adapt. As a GSSA, Euro Cargo Aviation is focused on the basics, which are – good customer, supplier, and staff relationships, clear information, and process management of the customers cargo from origin to destination. “We adapted well during the disruptions – moving from e meetings, back to face to face and anything in between. It was important in these periods to have a clear understanding of changes in different regions and to adapt when needed,” van der Laaken stated. Euro Cargo Aviation considers itself lucky that its team of professionals understand the industry and are career professionals. “For sure inflation plays its part and we support our staff with different wagebased initiatives – however the key is to remain lean and manage the costs for our client airlines – in each of our service hubs there is a responsibility to manage the cost structures of our client airlines so they can remain competitive,” he explained..

Most crucially, Euro Cargo Aviation has a responsibility to deliver full flights and the best possible yield, at a competitive price whilst managing its clients’ costs. “However you model this, it’s crucial you have a solid, professional workforce who are motivated – followed by investment in best people to manage the flow of cargo. Technology will play a major part in the coming 5 years – but the industry also needs to be ready to accept it in a greater way,” van der Laaken said.

Global coverage

With offices in The Netherlands, Belgium, France, Sweden, Norway, Denmark, Finland, Lithuania (Baltics), Germany, Austria, Switzerland, Poland, The United Kingdom, Ireland, China, Hong Kong, The United States, United Arab Emirates, South Africa, Mauritius, Zambia & Uganda, Euro Cargo Aviation has a global footprint. “We are strong players in Europe, Africa, USA and Asia – we want to keep evolving in these areas and growing our strong alliances and partnerships – We have more recently started our journey in the Middle East with the start-up of a Dubai office – from here we will plan to expand in this very important region,” van der Laaken highlighted. “Asia plays an important role in our growth strategy, and we can see some positive growth that we will support and invest in for the future,” van der Laaken added. “Alliances are important and strong partnerships with suppliers – some may prefer the one stop shop environment – but our customers are evolving, and they are flying to new places that are not always on the map of every GSSA – we believe it’s important to have key regions that you have a solid footprint – then work with good partners when needed,” he continued.

Controlling costs

The GSSA sector, like many others, face challenges on a regular basis, requiring them to manage their layers carefully to control costs. Euro Cargo Aviation’s management team all have roles and responsibilities in the day-to-day business and its country level Managing Directors are real entrepreneurs who know how to manage their daily business. “Managing costs is important to maintain competitive pricing, but we also believe in training our younger staff to be the stars of the future and this type of investing will create the best people for the future,” van der Laaken continued.

The Euro cargo Aviation Team at ACW World Air Cargo Awards 2023

www.eurocargoaviation.com

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Supporting smooth shipments Dedicated deliveries KLN’s recently launched less-than-container load (LCL) programme offers weekly direct LCL services from key Asian gateways to multiple country destinations across the globe. “This service leverages KLN’s solid presence and extensive ground support in Asia to provide customers with increased cost efficiency and dedicated customer care,” Rowlands explained. The new weekly scheduled LCL services are designed for all industries and cater to more than 2,800 corridors worldwide. Leveraging KLN’s established overland network between China and Southeast Asia, KLN provides shipment pick-up across China to be transported through its self-owned or self-managed consolidation hubs in all base ports with complete control of landside haulage cost.

Crucial components

WITH extensive facilities and a strong Asian network, Kerry Logistics Network (KLN) is in a prime position to help UK customers ship a range of their products to international customers, including B2B and B2C distributors and retailers. “With a global presence across 59 countries and territories, KLN has established a solid foothold in half of the world’s emerging markets,” Emma Rowlands, Strategic Sales Director at KLN, said.

Cost-efficient cargo services One of the main ways KLN works to assist its customers in accessing new markets is by setting up consolidation hubs. These hubs consolidate goods from global suppliers and provide all the services required to ensure a product is ready for sale across multiple channels and countries, including relabelling and cargo inspection. KLN also provides insurance, fumigation, customs clearance, warehousing, and cargo tracking through its designated portal. With diverse infrastructure, extensive coverage in international gateways, and local expertise, the cargo handler is prepared to facilitate the transport of goods across the Mainland of China, India, Southeast Asia, the CIS, Middle East, LATAM and other locations. “Our consolidation hubs provide all value-added services required to ensure a product is ready for sale across multiple channels, including packaging and labelling,” Rowlands stated.

A key aspect of KLN’s business portfolio is its new weekly freighter service to Ezhou, China, which has a specific focus on supporting UK businesses. This service has been designed to provide reliable and cost-effective solutions that unlock access to Asian markets, allowing UK enterprises to explore new avenues for growth and expansion. One of the major advantages of Kerry’s Ezhou service is its regional receiving points across the UK, which allow cargo to be consolidated from multiple regional locations, to offer flexibility and convenience to UK businesses. “This new regular and dependable schedule allows UK businesses of all sizes to access Asian markets at competitive rates,” Rowlands stated. “Ezhou’s strategic location serves as a gateway to key areas in China, made accessible by Kerry’s overnight road feeder service to Tianjin, Beijing, and Shanghai, ensuring delivery on Monday.”

Supply chain systems As digitalisation remains a key focus for cargo handlers in ensuring supply chain visibility, KLN is naturally keen to embrace all potential avenues of technological innovation to deliver high service levels to customers. Along with its Track and Trace software, customers utilising Kerry’s hubs have access to Kerry’s advanced Warehouse Management System (KWMS) and Supply Chain Visibility System, KerrierVISION. “KerrierVISION connects all parties in a supply chain on one common platform, which consolidates and compiles inventory, freight, purchase order and delivery tracking,” Rowlands added. “The platform ensures supply chain visibility as well as enabling shippers to access their shipment information and all necessary paperwork for customs and payment processes.”

ACW 30 OCTOBER 2023

NEWS

Scaling up Hong Kong-Liège e-commerce services

WHEN it comes to e-commerce, speed is the key. And while most e-commerce buyers will not think twice about how their shipment gets to their front door within just a few days from the moment of purchase, Challenge Group has meticulously considered every aspect of the supply chain. It knows that an average 48-hour delivery promise requires a daily uplift from and to main e-commerce gateways, coupled with a range of dedicated ancillary services incorporating fast customs clearance and well-thought-out middlemile delivery solutions to the respective domestic distribution centres. One of the world’s main e-commerce gateways is Hong Kong. Over in the centre of the golden triangle of Europe, lies Liège Airport, also specialised in e-commerce and home to Challenge Group’s main hub. Daily Challenge Airlines flights link the two, providing a swift and smooth feed into a dense European logistics network, managed by Challenge Group as a single point of contact for its customers. “With the injection of the B767 freighter into our fleet, we have greater capacity and flexibility to meet the growing e-commerce demand out of Hong Kong,” illustrates Or Zak, CCO of Challenge Group. “We recently increased our frequencies and will soon offer a daily service, deploying a combined B747 and B767 capacity, to best support our regular customers in meeting their new delivery commitments. This means that items can be shipped on their day of purchase or at the latest, the following day. Our customers want a trustworthy, reliable partner. For Challenge Group, operating and upholding a regular flight schedule is just part of our value proposition. We are committed to delivering unparalleled quality and efficiency at every step of the e-commerce supply chain, and that is why we also offer a comprehensive range of

ACW 30 OCTOBER 2023

ancillary services at our Liège hub.” Those ancillary services, tailored specifically to meet the diverse needs of Challenge Group’s clients, include: Sorting of Goods: Shipments are meticulously categorised according to their destination or the designated lastmile provider, to ensure efficient and timely deliveries.Customs Clearance: Challenge Group proactively arranges for customs clearance a full 4 hours before the flight’s arrival, thus streamlining the process and minimising delays. Consolidation Services: Challenge Group’s consolidation solutions enable multiple shipments to be combined into one to optimise transportation and reduce costs. Cooled Storage: Temperature-controlled storage facilities safeguard the integrity of high tech goods. Last Mile Solutions: In collaboration with leading industry providers, Challenge Group ensures that goods reach their final destination promptly and securely. B2C Customs Expertise: Challenge Group’s highly experienced B2C customs agents are adept at navigating the intricacies of consumer-focused shipments. “Over the past year, Challenge Group has embarked on a transformative journey to elevate our ancillary e-commerce services and solutions,” Or Zak, CCO of Challenge Group, said. “Recognising the evolving needs of our clients in the digital age, we have streamlined our offerings to provide a holistic end-to-end service. Now, our customers benefit from a singular point of contact that manages their entire e-commerce flow from airfreight to the final mid/last-mile delivery. This integrated approach not only simplifies the logistics process, but also ensures a consistent and reliable solution. What truly sets Challenge Group apart in the industry is our unwavering commitment to innovation and our ability to anticipate and adapt to the ever-changing landscape of global e-commerce.” The transformation journey continues as Challenge Group expands and adapts to the dynamic needs of the industry, to deliver unparalleled value to its clients. Strategic plans for the year ahead include further enhancing its e-commerce solutions to be as seamless as possible, expanding its strategic partnerships for a wider distribution network, and collaborating with Customs to further reduce custom clearance times and offer even more tailored solutions for B2B and B2C segments. “In essence, Challenge Group’s vision for the future in Liège is one of growth, innovation, and an unwavering commitment to excellence in every facet of our operations,” Or Zak concluded.

NEWS

Innovating the cargo booking process Seamless integration

AWERY Aviation Software is working to offer innovative solutions that enhance the cargo booking and management process in the airfreight industry. Awery’s CargoBooking platform presents an open-access online booking marketplace that facilitates real-time air cargo rate distribution, quotes, and bookings for airlines and their General Sales and Service Agents (GSSAs). One of the advantages of the platform is its automation of the entire sales process, resulting in improved cost savings, operational efficiencies, and an additional sales channel for both airlines and GSSAs. With CargoBooking, freight forwarders can self-serve for numerous transactions, while airlines and GSSAs gain access to a broader market. The platform eliminates the need for protracted email and phone exchanges, delivering a seamless online experience for users.

Awery’s recent partnership with Hermes Logistics Technologies (HLT) highlights the company’s dedication to facilitating industrywide transformation. The collaborative launch of h2A, an innovative Softwareas-a-Service (SaaS) solution for airlines, demonstrates Awery’s commitment to integration and digitalisation. h2A streamlines diverse workflow processes, offering a comprehensive solution that manages every aspect of the airfreight shipment lifecycle. The company’s CargoBooking products are designed to integrate seamlessly with legacy systems, catering to diverse IT landscapes. The platform can also be white-labelled, enabling customisation to meet specific customer requirements.

“As legacy airlines look to reduce their reliance on multiple disparate IT solutions and new cargo operators seek a single source IT supplier, Awery believes h2A is uniquely placed to help,” Koch said. Awery remains committed to enhancing the CargoBooking platform through regular feature releases, and it is working on major enhancements like live dynamic pricing, Interline bookings, and specialised platforms such as one dedicated to pharmaceutical cargo.

Digital evolution Koch envisions a future where the adoption of digital solutions accelerates, noting that the pace of adoption is becoming faster and more streamlined each day. As digitalisation evolves from an option to a necessity for companies aiming to remain competitive and compliant, the industry needs to embrace and support this evolution by making data sharing free and widely accessible. “Global coverage is the long-term aim,” Koch stated. “We are rolling out our open access CargoBooking in Europe and will soon be expanding to Asia and Australia.”

New standards What sets Awery’s CargoBooking platform apart is its commitment to simplicity and affordability. Awery does not impose charges on participating users for quoting and booking services. Moreover, airlines and GSSAs can engage with forwarders on CargoBooking without necessitating forwarder registration. While future premium, paid-for services might incorporate data analysis and advertising, the standard version of CargoBooking remains a platform available to all participants. “We believe in an air cargo digital democracy, and by offering this open-access version of our platform, we can help drive that transformation to the benefit of all players in the industry,” Tristan Koch, Chief Commercial Officer, Awery Aviation Software, said.

Enhanced efficiency Awery’s CargoBooking platform incorporates its eMagic tool, which seamlessly integrates into operators’ existing email systems. eMagic, an email plug-in, scans email content to extract essential elements for quotes and bookings. By consolidating various data types into a single readable format, eMagic eliminates the need for time-consuming manual data input. “By creating a solution that is easy for operators to integrate into their existing systems, Awery is actively facilitating the digitalisation of the industry, one step at a time,” Koch explained. Addressing concerns about data security and privacy, Koch emphasised that data sharing between industry stakeholders, as promoted by Awery, enhances supply chain efficiency without compromising cybersecurity. “Data sharing is the future of the air cargo industry and will actively mitigate against disruption to the supply chain in the future,” Koch highlighted. Awery has taken extensive measures to ensure cybersecurity compliance. The company is ISO 27001 certified, demonstrating a comprehensive Information Security Management System across all operations. Awery employs multiple layers of data security, including firewalls, data encryption, and two-step authentication. Furthermore, the company educates its employees on cybersecurity risks and best practices, fostering a culture of security awareness. “We also undertake further protection of Awery and its clients’ data beyond regulatory requirements, to ensure that we are always at the cutting edge of cybersecurity,” he said, reassuring current and potential clients.

ACW 30 OCTOBER 2023

NEWS

APAC’s open for business as supply chain managers will be able to meet representatives from all transport modes.”

Key themes

WITH the doors about to open at transport logistic and air cargo Southeast Asia at Singapore’s Sands Expo and Convention Centre, visitors can expect a truly international trade show with more than 130 exhibitors from 23 countries worldwide. More than 5,000 people are expected to walk through the door between 1st-3rd November, including a high number of C-Level decision makers in shipping and airfreight. “Like the flagship exhibition in Munich, the inaugural transport logistic SEA & air cargo SEA will have key players from the multimodal transportation,” Michael Wilton, Managing Di-

ACW 30 OCTOBER 2023

rector of MMI Asia, Messe München’s regional subsidiary, said. The air cargo wing of the event is set to have a strong focus with numerous international, as well as Asian-Pacific countries and cargo airlines present. Some of the airlines set to showcase their operations at the event are Astral Aviation, Emirates SkyCargo, Garuda, MAS Kargo, Saudia Cargo, Singapore Airlines, Sri Lanka airlines, Turkish Cargo, Teleport (Air Asia), United Cargo and Vietjet Air Cargo. With digitalisation a hot topic on the agenda, there will also be a number of leading

technology providers showcasing their innovative solutions, such as AWERY, BlueBox Systems, CargoTech, Coface Singapore, Flexport, Smart Aerospace Solutions, WebCargo, WIZ. These companies will be joined by a wide range of businesses that play a pivotal role in the industry industries, such as GSSAs, freight forwarders, ports and terminals. “The multimodal concept of air cargo & transport logistic in parallel has been a success at our flagship fair in Munich for many years,” Wilton explained. “Combining air cargo & transport logitistic is key point for our shows

Resilience, digitalisation and sustainability are the focus themes of the conference, with exhibitors and speakers highlighting their operations in that space. Some highlights include discussions on strategic priorities for post-pandemic supply chains, as well as how to build resilient and reliable airfreight solutions for high-tech cargo commodities. On the stage, Singapore Airlines, Jettainer, Chicago Rockford International Airport, Incheon Airport and Tam Group, will give insights on key developments in the industry. “The response to the event has been overwhelming since the first announcement of acSEA. This is in particular reflected in the global interest for the show which many exhibitors making a commitment more than a year ago,” Wilton highlighted. “As a tradeshow organisers, we provide the platform for our clients to network & establish new business contacts,” he continued. “For the Southeast Asia region, we hope that visitors will be able to make fruitful contacts with participants they may not be able to meet at other shows around the world,” Wilton added. “In addition the conference program will give insights on the regional development and potential of the sector here. Visitors have the opportunity to get insights first-hand and directly meet with experts from the region.”

SOUTH EAST ASIA

LUFTHANSA EYES OPPORTUNITY IN ASIA

FEATURE

“More cargo capacity will also be increased through greater belly capacity resulting from the addition and introduction of new passenger routes by Lufthansa in Asia”

ver the last years, the Asia Pacific (APAC) region has served as a significant manufacturing hub DUE to the presence of the world’s largest manufacturing economies, including China, India, Southeast Asia, South Korea, and Japan. Asia is also home to nearly 60% of the world’s population and 60% of its youth, making it a robust workforce source for the foreseeable future. With 42 dedicated freighters flying to Asia per week, as well as belly capacity in 120+ weekly passenger flights, Lufthansa Cargo has recognised the growing potential of the APAC market. “Airfreight operations play a crucial role as they are not only the fastest but also sometimes the most cost-effective means of transport, particularly for high-value items of relatively small weight and size,” J. Florian Pfaff, Vice President Asia Pacific of Lufthansa Cargo AG, said. According to IATA, the Asia Pacific region holds about 32% of the world’s air cargo market share. Year after year, Europe-Asia air cargo volumes increased by 3.2% in 2023. As more companies move their manufacturing to Asia and source their supplies from here, Asia becomes an increasingly important hub for cargo operations. This trend has persisted for some time and has been exacerbated during the COVID-19 pandemic because of disruptions in the supply chain and logistics. If ASEAN were a single country, it would rank as the third most populous nation with a significant proportion of young people. “European and American companies are looking to diversify their supply chains, so they frequently move their manufacturing operations to Southeast Asia. As a result, this region has become a prominent foreign direct investment destination in Asia,” Pfaff added. Manufacturing on the move As a large percentage of manufacturing takes place in Asia, the primary cargo segments differ depending on the country. Generally, the key segments consist of semiconductors, pharmaceuticals, automobiles, and electronics originating from Asia. Additionally, e-commerce shipments have experienced significant growth in recent times. “Lufthansa Cargo has had a presence in Asia for over 50 years and remains a significant player in the air cargo industry, Pfaff highlighted. “As the demand for air cargo grows and our Cargo fleet expands, we are continuously seeking out opportunities for expansion in Asia.” “More cargo capacity will also be increased through greater belly capacity resulting from the addition and introduction of new passenger routes by Lufthansa in Asia,” Pfaff continued. “This includes new passenger flights on the Munich-Bengaluru route in November and the Frankfurt- Hyderabad route beginning in 2024.” ACW 30 OCTOBER 2023

AIR CARGO SE ASIA PREVIEW

BUILDING A PLATFORM FOR PRO

“Securing community support and change management are key success factors”

ACW 30 OCTOBER 2023

onnected with over 220 destinations worldwide that are served by some 120 airlines, Hong Kong International Airport (HKIA) has secured its status as one of the top international hubs in the world. It has long been the busiest cargo airport in the world, handling a total of 4.2 million tonnes of cargo during 2022, according to the latest data released by Airports Council International. With technology transforming the air cargo industry and the emergence of e-commerce and disruptive technologies, it seemed only natural for HKIA to embrace digitalisation. “To cope with the increasing customer demand in this fast changing world while assuring high security and regulatory standards as well as operations efficiency, go-digital is the norm for all industries, with no exception for air cargo and logistics supply chain,” Irene Lau, Assistant General Manager, Aviation Logistics, Airport Authority Hong Kong said.

A synchronised sector To stay ahead of the digitalisation curve and to continue reinforcing HKIA’s status in the airfreight sector, Airport Authority Hong Kong (AAHK) has developed a communitybased digital platform, HKIA Cargo Data Platform, to connect supply chain stakeholders together. This move has helped to unleash the benefits of digitalisation provides for the air cargo and logistics industry in Hong Kong. HKIA Cargo Data

Platform (Platform) is built on smart technologies including blockchain, smart contracts and mobility solutions and is IATA One Record compliant. “Leveraging a synchronised and trusted network, connecting our key air cargo stakeholders together, has ensured operational processes are streamlined and automated with seamless communication and better cargo journey visibility,” Irene explained. The system’s first application release launched in October 2021, covering the pre-declaration process for export cargo, and so far, more than 300 entities has joined up. To cope with different processing needs, technology maturities and roles of, the platform allows direct portal/mobile access and system integration. HKIA Cargo GBA Sea-air Transshipment Facilitation Scheme, the second application release, was launched in January 2022. This is a monitoring application offering Hong Kong Customs one-stop integrated portal to access the orders, sea transport journey and security information on sea-air intermodal shipments that transit between HKIA Dongguan Logistics Park and HKIA. The system was extended further in August 2023, with the release of HKIA’s third application, covering the upstream air cargo operations digitalisation in HKIA Dongguan Logistics Park. The first Chinese platform built to support sea-air intermodal shipment handling in the Greater Bay Area, it

FEATURE trends, such as AI, robotics, automation and more. HKIA aims to be a trend setter in pioneering the development of blockchain based community platform to drive not only process efficiency and standards but also work as a strategic enabler to drive air traffic and global trade as a world leading smart aviation hub. “In parallel to developing the local ecosystem network through different application releases, we are also working actively with different industry stakeholders and platforms to identify potential areas for collaboration,” Irene said. Looking beyond the airfreight community, HKIA has recognised that digital processes need to be adopted across the whole supply chain, from local players to global stakeholders to boost value and opportunities. “We keep abreast of the latest industry trends and market landscape through which the challenges will be evaluated from different digital perspectives,” Irene added. “Through our ecosystem engagement and collaborations, innovative ideas and cocreated initiatives are formulated. This enhances our competitiveness to stay ahead in the ever-evolving landscape of digitalisation in airfreight industry.”

“We keep abreast of the latest industry trends and market landscape through which the challenges will be evaluated from different digital perspectives”

PROGRESS works to improve security screening, cargo consolidation and cargo terminal acceptance process.

Projects in partnership Driving digitalisation requires concerted efforts from the entire supply chain stakeholders. “Securing community support and change management are key success factors,” Irene highlighted. “Streamlining services requires breaking the silos, enabling collaboration in the supply chain and connecting partners together seamlessly.” HKIA’s digital transformation project started with the early engagement of the community through industry groups and advisory groups, seeking their views and input on industry challenges and pain points. “Involvement of key industry participants and business partners is essential and we invited pilot users from different roles and across various scales,” Irene stated. “Identifying like-minded companies to work with, HKIA embraced a policy of driving public awareness, acceptance and adoption to encourage others to recognise the benefits of digitalisation.”

Strategy to stay ahead Data and technological transformation are key pillars in the digitalisation of the air cargo industry, amid growing

ACW 30 OCTOBER 2023