ACW Daily news 8th November 22

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DA ILY NEWS TUESDAY • 8 NOVEMBER 2022

THE OFFICIAL DAILY NEWSPAPER OF AIR CARGO FORUM 2022

INSIDE

LATAM Airlines Group emerges from restructuring with most extensive network in South America

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ATAM Airlines Group has successfully completed its financial restructuring process in the United States, which it voluntarily commenced in May 2020 to reduce its debt, access new sources of financing and transform its business in response to the global pandemic.

Having maintained its position while achieving significant cost savings, LATAM has emerged from the reorganisation as a more efficient group, with a modernised fleet, the most extensive network of connections in South America, and the continent’s largest loyalty programme.

With over $2.2 billion of liquidity, approximately $3.6 billion less debt on its balance sheet and the support of key incumbent and new shareholders, LATAM is

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poised to reaffirm its leadership in South America and has positioned itself for long-term sustainability.

“We are pleased that we have completed a significant transformation and emerged from our financial restructuring process with a strengthened financial position and a renewed commitment to operational excellence. As a group with a dynamic team of 30,000 employees and an unrivalled connectivity network, we look forward to continuing to offer passengers and cargo clients the best alternative for travel to, from, and within South America and to contribute in the broader sense to the various countries in which we operate and their diverse interests,” Roberto Alvo, CEO of LATAM Airlines Group, said, marking the important milestone for the company and its shareholders.

AIR FRANCE KLM MARTINAIR AIR France KLM Martinair Cargo (AFKLMP Cargo) and Jan de Rijk Logistics have joined forces ...

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ACL AIRSHOP SHIFTS INTO ...

ACL Airshop is set to announce strategic initiatives and technology themes at air cargo forum Miami ...

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MIAMI WELCOMES YEAR’S ...

As the world’s largest logistics trade show kicks off, The International Air Cargo Association (TIACA) ...

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AIR France KLM Martinair Cargo (AFKLMP Cargo) and Jan de Rijk Logistics have joined forces to take a new long heavy vehicle (LHV) into operation. This completely new truck will run on BioFuel – Hydrotreated Vegetable Oil 100 (HVO100).

The big advantage of using an LHV is the huge volume of cargo it can carry, moving up to six unit load devices (ULDs) at a time, whereas a normal cargo carrying vehicle can only take four. This means that using an LHV for two trips saves an entire truck trip, therefore substantially reducing CO2 emissions as well.

The new LHV will be used exclusively on the route between Amsterdam Airport Schiphol and Frankfurt am Main. This strategic choice stems from the high cargo volumes carried on this route. Within AFKLMP Cargo’s extensive network, Frankfurt, like its Dutch home base Schiphol, is one of AFKLMP Cargo’s larger cargo hubs.

“To achieve greater sustainability, we in the logistics sector are especially aiming to forge alliances to promote innovative and effective solutions. I’m therefore extremely proud of our partnership with Jan de Rijk Logistics in creating this sustainable combination of an LHV powered by HVO, specially developed for air cargo,” Adriaan den Heijer, EVP Air France KLM Cargo and Managing Director Martinair, said.

“We’re extremely proud of AFKLMP Cargo for being the first airline to join us to invest in further reducing CO2 emissions...Now that the first airline has joined us, we hope that others will follow soon to reduce the impact on our climate,” Fred Westdijk, CEO Jan de Rijk Logistics, said.

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Directors: Norman Bamford • William Carr • Dawn Jolley Printed by: Smart Advertising, Miami, Florida, USA. The views and opinions expressed in this publication are not necessarily those of the publishers. Whilst every care is taken, the publishers cannot be held legally responsible for any errors in articles or advertisements. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by electronic, mechanical, photographic or other means without the prior consent of the publishers. USA: The publishers shall not be liable for losses, claims, damages or expenses arising out of or attributed to the contents of Air Cargo Week, insofar as they are based on information, presentations, reports or data that have been publicly I N T E R N AT I O N A L disseminated, furnished or otherwise communicated to Air Cargo Week.

AZURA

Air France KLM Martinair Cargo and Jan de Rijk Logistics take important step towards more sustainable goods transport

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Trucksters adds 50 new trailers to its fleet from German manufacturer Krone

ACL Airshop shifts into higher gear for air cargo customers

TRUCKSTERS has acquired 50 new trailers from the German manufacturer Krone, 20 of which have already been delivered this week with the company’s new signage. The new Mega Liner trailers feature a large load volume of 100 m3 and sophisticated technology specially designed for high-speed stretches of freight transport.

“At Krone we are known for supporting start-ups through our services and financial options.

Under this philosophy, we have established a solid collaboration with Trucksters since 2020. This agreement means a step further in this exciting business relationship,” Eneko Urrutikoetxea, Krone Rental Business manager, said.

“For Trucksters, it is a qualitative leap that allows us to reinforce our brand image, as our objective is for 100% of the fleet to have a unified corporate image by 2023; but also, an increase in load capacity and the capacity to improve service to our customers,” José Lezáun, VP of Operations Spain at Trucksters, stated.

ACL Airshop is set to announce strategic initiatives and technology themes at air cargo forum Miami and transport logistic Americas.

ACL Airshop has geared-up two key aspects in its business offerings, centered on customers’ needs.

While maintaining its market share on short-term Unit Load Device (ULD) leasing solutions, it is adding a growing array of selective long-term multi-year ULD fleet management contracts with its customers and continuously upgrading its comprehensive digital suite of innovative logistics technologies.

Long-term ULD fleet management contracts now comprise half of ACL Airshop’s deployed asset volume Multi-year contracts can give customers cost-efficient access to all of the logistics and digital services that ACL Airshop offers, including repairs, nets, straps, digitalisation, ULD Control, tracking, FindMyULD, and other end-to-end efficiencies. The company is continuously investing in more pallets and many other ULD types to expand its available fleet, and will be opening more network hub stations in response to clients’ requirements. That includes ACL’s unique one-way lease/drop-off option. ACL Airshop’s deliberate mix of short-term solutions and long-term recurring contracts is a formidable value proposition that helps customers with numerous options.

Award-winning digital suite makes life easier for all users in the customer’s logistics ecosystem ULD Control is a complete web-based software solution for managing ULD equipment anywhere 24/7. ACL Airshop is a key player at the nexus of the industry evolution in digital technologies that aid freight forwarders, shippers, cargo centres, and airlines in improving their operations. The company recently revealed in 2022 a newly designed

and field-tested Bluetooth ULD tag for installation in the seat-tracks of cargo pallets. That product is now rolling-out with several major customers. By combining ULD Control with the company’s awardwinning app FindMyULD, Bluetooth tracking, ACL’s global Operations Center, plus advanced Repair Station software and other innovations, customers discover they can “do more with less.” ACL Airshop has now even tied the Airway Bill itself to the Bluetooth tag of the ULD, creating useful new levels of end-toend visibility and speed for air cargo customers and their end-user shippers. One of the company leaders likened these advances to the “Uberisation” of the air cargo ULD sector—putting “everything in the palm of your hand” for customers and other parties across

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ACL Airshop has geared-up two key aspects in its business offerings, centered on customers’ needs

the network.

ACL Airshop owns, maintains and leases more than 60,000 ULDs, including air freight pallets and containers, issued from 55 airport hub locations across North America, Europe, Asia Pacific, the Middle East and Latin America. ACL Airshop’s growth in recent years builds on the company’s 39-year heritage as an air cargo equipment and logistics specialist, having expanded from 23 airport hub locations in 2016 to 55, with more planned.

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Conferences are back

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fter a four-year hiatus due to Covid restrictions, Messe München and The International Air Cargo Association (TIACA) are welcoming attendees back to air cargo forum (ACF) Miami and transport logistic Americas.

“Conferences are coming back, trade shows are coming back, and we really see that people need these platforms to meet old friends and business partners, to make new contacts and to present innovations and products,” Robert Schönberger, Messe

München’s exhibition director stated. “We are very excited, as we are pretty sure this will be the biggest logistics events this year in the US and maybe worldwide.”

With these events requiring a great deal of planning over 18-24 months, this has been in long time in the making, going through a series of ups and downs. When the event in 2020 was forced to be cancelled, it was a blow for Messe München and everyone involved.

Schönberger, who has previously described trade shows as the surprise star of the post-pandemic era, is positive ahead of the event due to the industry’s belief in the air cargo forum brand. “We have a nice number

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In this industry it’s about people, it’s about trust, it’s about how we can work together.

of exhibitors on the show floor and we are expecting a great number of visitors.”

Messe München sees trade shows, like ACF Miami and transport logistic Americas, as necessary for the air cargo industry. “In this industry it’s about people, it’s about trust, it’s about how we can work together. At the end, it’s very often a personal relationship. To build up that trust, get in touch and say you are a loyal partner, this is so important to explain and is different to other industries.”

While the industry is now in a position where it is returning to some degree of normality, it’s not quite there yet, with each and every market being in a slightly different position. “The circumstances are different and the challenges are different but what we see is, as soon as it’s possible to do the shows, then they are going to happen.”

However, for Miami, there has been significant demand for the event, as registration levels exceeded expectations, reflecting the buzz around the exhibition. “Miami is absolutely a perfect spot. It’s the gateway to Latin America. The US market is huge,” Schönberger stated. “If you go to Miami, you can get an answer to everything. If it’s road, rail, sea, air or any logistic service, you will find someone who can help you and that makes it very convenient for people from different industries.

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Building a digital platform system in Europe

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Digitalisation means comprehensive change and businesses are aware of that

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s the German federal government coordinator, Oliver Luksic, the parliamentary state secretary to the federal minister for digital and transport, is the point of contact for the country’s logistics sector. In his role, he’s well placed to support the endeavours, understand the concerns and promote causes within the sector to ensure the industry runs smoothly.

“The logistics industry had to rapidly adapt to major changes, be it meeting new requirements, quickly moving vaccines or ensuring the supply of the population,” Luksic said, highlighting how the government worked alongside the freight transport sector to ensure it is “not confronted with major frictions,” caused by issues such as ineffective regulations.

Opportunities for the logistics sector As someone who is keenly focused on the role of digitalisation in the logistics sector, Luksic is keen to promote the opportunities presented by technological innovation, as conferences, such as air cargo forum Miami and transport logistic America, consider how the industry can embrace it.

“It is important that we include everybody in the digital transformation, this means small and medium-sized enterprises, too, and that we connect public authorities and services to digital systems. The aim is to set up a digital platform system in Europe,” Luksic stated.

“Digitalisation means comprehensive change and businesses are aware of that. Transport operations can be accelerated, costs lowered, proneness to errors reduced and emissions as well as paper can be saved,” he added.

“Digital platforms will become increasingly important,” Luksic said, citing three areas that must be achieved to boost digital transformation:

First, there must be modern, high-capacity and sustainable networks with data and data instruments available, second, there has to be secure and user-friendly digital identities and modern registers and, third, the industry must have uniform international technical standards.

Presenting programmes

Germany has an important function in Europe’s logistics system. Following the automotive sector and trade, the logistics sector is Germany’s third largest sector with a workforce of more than 3 million. The turnover generated by the transport and control of the flow of goods and information, as well as their storage, amounted to around €294 billion (£254 billion) in 2021. Growth in 2022 is expected to reach around 8.5%.

Heading to the event, the German federal ministry is set to present its digital air cargo testbed funding programme at an expert forum.

The system, aimed at promoting the digitalisation and linking-up of the numerous parties involved in air cargo logistics chains, is based on the principle that data remains at the respective source.

“There are countless non-compatible systems which must be harmonised. Only then can data be exchanged effectively, which in turn will save time and free up human resources,” Luksic highlighted, pointing to concerns expressed by trading partners about an insecure exchange of data.

Future forecasts Luksic is cautious to present a prediction for the growth of Germany’s freight and logistics market in the short-term amid a series of burdens on the sector, such as war, rising energy prices and supply chain disruptions.

However, up to 2030, the government expects to see sharp increases in the traffic of freight moved in Germany for all modes of transport.

As an industrialised country, Germany strongly relies on being connected with economic partners throughout the world. Air and sea freight are the main pillars of international and global connectivity. Road and rail transport ensure connectivity with neighbouring regions. All modes of transport complement each other and facilitate secure supply chains.

That’s why it is in the primary interests of the Federal Republic of Germany to make available efficient intermodal transport infrastructure.

“That is why we are, among other things, continuously working on improving the links to and from intermodal hubs, in particular seaports and airports. In doing so, we aim to secure a reliable supply of goods in the long term as well as the competitiveness of our economy,” Luksic said.

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Miami welcomes year’s largest trade show

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s the world’s largest logistics trade show kicks off, The International Air Cargo Association (TIACA) and its partner Messe München are welcoming attendees to air cargo forum (ACF) Miami and transport logistic Americas.

With it having been four years since ACF gathered in Toronto, Steven Polmans, TIACA’s Chairman, highlighted how the demand for the event reflects how there is a clear “need for people to come out again, meet and talk.” Particularly for an interconnected industry like the air cargo sector, these events are beneficial in bringing people together.

Welcome to Miami In parallel with transport logistic, the leading international exhibition for logistics, mobility, IT and supply chain management, ACF now finds its permanent home in the booming Florida metropolis of Miami - a central point connecting the US with locations throughout the world.

“That was one of our very important topics

- to be global. Although, we’ll have our permanent base in Miami for ACF, we still want to be global, so finding a location where you can make sure that everybody can get there was very important.”

Previously TIACA would host exhibitions around the globe but that approach posed challenges, as an event of this scale requires an ideal location and a lot of expertise. With trade shows in Asia and Africa, there was an opening for an event of this scale in the US. “Miami is a big logistical hub connecting South America with North America, both maritime and air cargo, so it was a fairly easy choice as a permanent home to be honest.”

Connecting, discussing and discovering While the air cargo industry does have a strong record of identifying and discussing the challenges it faces and potential solutions which could combat them to help future-proof the sector, it has faced some criticism for being “good in talking, less good in acting,” Polmans

admitted.

With this in mind, ACF Miami and transport logistic Americas hope to shine a spotlight on topics that have been at the centre of debates within the industry, such as digitalisation, sustainability and what the next generation workforce will look like. “They are absolutely on top of the agenda,” Polmans said, discussing the issues he’s hearing companies focus on.

Digitalisation on the agenda The air cargo industry has seen digitalisation kick into another gear due to the disruption witnessed over the past few years. Forced to adapt quickly to maintain efficiency and minimise disruption, technological innovation became a focal point for companies. “Digitalisation is really happening all over the place,” Polmans said.

Looking at the conversations that are set to happen in Miami, Polmans highlighted how companies have been focused on looking at how they can digitalise current processes. However, by changing their processes, making use of

a lot of finger pointing when a problem emerges, which doesn’t actually provide a solution.

“We can’t do that as an association...We have to look at what brings us together and how we can make a difference. That is the main message of the event - by sitting and speaking together, we can inspire people.”

In Miami, TIACA is bringing a positive message of unity in the hope that the industry can find ways to work together and make a difference. After all, one company can’t act alone in an interconnected world, it requires a cohesive effort. “If everybody takes one step forward, that’s huge progress. We hope that people do realise, more than ever, especially after Covid, we are all in this together.”

digital solutions, they can multiple the benefits.

“I think that’s the biggest revolution...that’s the biggest game changer and mentality change that we need in our industry.”

Sustainability at the centre For TIACA, sustainability isn’t just a buzzword or a tick box exercise. The industry association is determined to turn talk into action through its BlueSky sustainability assessment, validation and verification programme. The programme aims to be the tool in the industry uses that can track progress, benchmark companies against their peers and accelerate the industry’s transformation.

“We are not just looking at carbon emissions.

We are really talking about sustainability in all elements,” Polmans stated. At ACF Miami and transport logistic Americas, the trade show will bring large companies and new entries into the industry together to explore creative, innovative ideas on sustainability, as well as raising interest in TIACA’s own programme. “We are really trying to bring back sustainability in easy, small blocks, so you can do it at your own pace, in your specific element and learn from others,” he added.

Uniting the industry As an association, TIACA has gone through a period of self-reflection over the past few years, as it considers the role it can play in the industry.

“We represent everybody in the industry. We unite the air cargo industry,” Polmans said.

As it stands, across the industry, there can be

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The air cargo industry has seen digitalisation kick into another gear due to the disruption witnessed over the past few years

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Transforming the cargo bo

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igitalisation is hot on the agenda for many companies at air cargo forum Miami and transport logistic Americas, with Airblox among those looking to capitalise on the technological transformation currently underway across the industry. For Airblox, it’s not just about their own success, it’s about future-proofing companies that face either adopting digitalisation or being left behind by their competitors.

With Airblox’s founder Edip Pektas having a lifelong passion in aviation, he saw an opportunity to enter into the market as a digital revolution began to unfold in front of his eyes. When his fund Inoa Ventures started a ground handling company, MIC Cargo, at Chicago O’Hare International Airport, he saw first-hand how inefficient the process of trading block spaces was. Capacity allocation is one of the most expensive

commodities that facilities global trade, taking a significant amount of time, energy and cost to execute. The mismanagement of resources was negatively impacting companies.

Focus on finance

“What we have seen as one of the major problems in the air cargo industry is a lack of financial structure or requirements that allow for that.

Requirements that are put forth to trade in this business or become successful in this business are really right around financials,” Pektas stated.

“When you have small- to medium-sized freight forwarders not being able to buy or directly deal with airlines at certain points, it’s all because of finance.”

That’s where Airblox comes into play - as a platform, it’s looking to be the best platform for airlines and freight forwarders to trade air cargo

capacity. Providing a flexible, agile and tactical tool, the company is looking to help market participants visualise their exposure, expand or contract their capabilities and manage their risk in real time. Through standardised electronic block space agreements (eBSAs), Airblox allows the holder of a block space to make it available to another entity to use, as well as giving interested parties the ability to bid, buy or block.

“We’re being the vertical integration product between logistics, air cargo and financial markets,” Pektas said.

Outdated industry “Everything is outdated in our industry,” Pektas stated. “You cannot create a marketplace without working with the participants and educating them.” That’s why trade shows, like ACF Miami and transport logistic America are so im-

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o booking process portant for them, as it gives them the chance to showcase their company to the industry at large. “What we believe at Airblox is we can bring finance to the air cargo industry and then digitise that. That’s what we’re focused on,” he added.

Back in May, Airblox unveiled a live feed of global air freight schedule flight capacity to support users of its service. At the time, Pektas stated that the company believes “the future of air cargo capacity is as a tradable concept, and by launching this new feed, we are a step closer to giving full transparency of the scheduled global airfreight capacity to our users so that they can make informed decisions.”

The next ten years However, it’s not all plain sailing for companies like Airblox, as they face some resistance from

an industry that, to an extent, is stuck in its ways and resistant to change. “It’s human nature to resist change,” Pektas admits. Although, he is optimistic that the aviation industry can be convinced to modernise and improve the way that it has been doing things. “Aviation is at the starting point of that industrial revolution. For the next ten years, we will see significant improvement in every part of aviation.”

For Airblox as a company, those next ten years pose a fantastic opportunity for growth, with the company actively looking for partners globally, both freight forwarders and airlines, but also financial partners too. As a FinTech platform, facilitating the trade of block spaces, Airblox is looking for consolidations, banks, financial and investment companies that are willing to finance freight cost within the industry through its eSBA platform.

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You cannot create a marketplace without working with the participants and educating them

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Delivering essentials via drones

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Leading the way on drone technologies

revolutionise health care access domestically and internationally, showing if it can be replicated elsewhere.

“This type of project is not only developing the use of technology in delivering essential services but also helps to demonstrate the potential that Advanced Air Mobility can offer,” Chris Crombie, technical director at Atkins, stated.

“The principle of what we’re try to do is understand how to run a drone network, make that feasible within UK airspace,” he added. “I think the principle of pods and networks might be the same,” although he suggested different landing sites might be needed depending on the type of package being delivered. For example, Amazon packages could have more variable sites, while medical packages might need a sterile environment.

Once completed, this project will help to position Scotland at the forefront of the development of drone technologies to deliver healthcare supplies quickly and to remote locations. With the potential to transform the way medical goods are delivered, Project Caelus has the ability to

While a beautiful country, with picturesque scenes, transporting goods, particularly at speed can be challenging due to winding roads and rural communities with minimal infrastructure.

roject Caelus is on a mission to revolutionise the way in which healthcare services are delivered in Scotland.

Through a consortium of companies, the project is looking to develop and trial the UK’s first national distribution network, using drones to transport essential medicines, food, organs and other supplies around the country.

ASG Airports, which owns an manages Aberdeen, Glasgow and Southhampton airports, is leading the consortium, with Atkins working to provide the land-based infrastructure, including the landing pods, that will be crucial in ensuring the smooth operation of the system once it is up and running.

Game-changer for rural communities

With a drone network, there is the potential to rectify that.

Scotland is uniquely positioned to test the ability of a drone network to deliver care to people in urban, remote, rural and island locations due to its vast geographical area with a rough 50/50 split between urban and rural communities. This would not just benefit those in Scotland but elsewhere in the UK, as this project will allow for people to explore the viability, scalability and efficiency of the technology.

“There’s a lot of remote areas. When you think about drones and drone projects, particularly in the medical sector, it’s about being able to reach remote areas or areas traditionally difficult to reach,” Crombie said. “By not having those traditional landing pods that would’ve been permanently there, you can land theoretically anywhere.”

Environmentally-friendly alternative While drone technology provides a clear benefit in ensuring greater connectivity, it has an even greater positive element when looking at

the process, with flight trials of drones and testing of the critical systems they have designed.

Back in September, the consortium entered a new phase of development. Along with the flight trials, the consortium can start building and deploying prototype landing bases, as well as digital and communication infrastructure.

Work is being done in conjunction with the government, as well as investment in research and innovation through partnerships with academia and industry. The aim is to demonstrate and ultimately role out the safe integration and operation of drones, advanced air mobility and regional aircraft, along with advancements in electrification and autonomy.

the international mission to reach net zero carbon emissions. Using drones that do not require fossil fuels to fly, cuts carbon emissions immediately, compared with using traditional road or air transportation methods.

For Atkins, developing the landing pods, one of their core factors is providing infrastructure that can be deployed and packed away easily, swiftly, in any terrain and with minimal impact on the environment. “You deploy it for as long as it’s needed then you tow it away again, so the investment is in those products, as opposed to the physical site infrastructure...There’s actually left in the ground whatsoever, so that’s very important us. We’re not disturbing what’s already there. We’re just anchoring it was we need to and then taking it away.”

“This is a hugely important project that will pave the way for increased use of this technology in our skies, and finding more efficient ways to build larger and more connected networks that reach people most in need,” Crombie said.

Funding fuels innovation The Future Flight Challenge from the UK Research and Innovation is a £125 million investment that is designed to deliver the third revolution in aviation, establishing a vision for the future aviation system using new classes of vehicles to transform how people, goods and services are connected.

Project Caelus has been part funded by Innovate UK’s Future Flight Challenge, securing £7 million of funding, building on the £1.5 million that was achieved in January 2020.

The second round of funding secured by Project Caelus allows it to move to the next stage of

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This is a hugely important project that will pave the way for increased use of this technology in our skies

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Cutting waste in the c

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hen moving cargo, it’s important to ensure swift, secure and efficient transportation. That’s even more important when looking at the temperature-sensitive supply chain. Normal goods can scarcely afford to be delayed but, for the perishables sector, disruption can lead to costly loss and waste.

For Nicola Caristo, the Cool Chain Association’s (CCA) secretary general, sustainability is not just part of his role, it’s a passion in his personal and professional lives. “When it comes to perishables, it’s crazy really how much food is wasted - almost 20%,” he stated, highlighting the association’s mission to target the problem at the source, analysing problematic hotspots and finding solutions.

Control Board (PPECB) to collaborate on research initiatives about airfreight of perishables.

Having grown as an organisation over the past 20 years and, in particular, the last few months, with plans to hold its own conference on the perishables sector next year, marking a significant

20 years of experience

milestone since its creation at TIACA’s Bilbao Air Cargo Forum, CCA’s recent initiatives include the establishment of a Technical Committee to drive projects,

CCA recently celebrated its 20th anniversary, entering into a Memorandum of Understanding (MoU) with the Perishable Products Export

which will benefit the cool supply chain, including a risk management project and a trial of a new perishables label. The primary aim of this collaborative mission is to identify gaps in the airfreight value chain and discuss possible mitigation measures with CCA and the industry at large, strengthening standards and educating players.

Room for improvement

The CCA looks to bring together all elements of the temperature-sensitive supply chain to create an impact with visible and measurable results for companies and society. Companies within a supply chain can’t act alone. They have to interact with one another. This is why Caristo sees it as “super important” for industries to embrace the changing mindset since the pandemic and embrace innovation that can improve practices and reduce waste.

“We cannot use lack of technology as an excuse anymore because the technology is there.

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e cool chain It’s really the willingness to practically collaborate and work in a transparent way. Is the standard enough? Sure it’s not enough. So, it should be easy to say, you know what, we’ll raise the standard,” he added.

While CCA would like the transformation to be swift by recognising that there are challenges in moving straight to a perfect standard globally, as not every location involved is in a position where that would be easy or even possible. “In my view, it’s better to have a step by step process, with an affordable, good standard, so you can have local or early adopters.”

Collective responsibility As with other areas of the supply chain, there are a few freight forwarders and cargo handlers leading the way on addressing the challenges with moving temperature-sensitive goods.

“They took the lead in that because they saw a potential market but also because they believe in this. They are over performing,” Caristo high-

lighted, calling these people a “kind of local hero.”

However, a supply chain is only as strong as the sum of its parts and that requires all elements to be pulling their weight, not relying on a few stand out performers. “We all know that the air cargo supply chain is very fragmented...

When it comes to perishables, it’s still difficult to understand and put all the stakeholders around the table,” Caristo admitted.

CCA hopes to change this by bringing together all elements of the industry to create a unified approach to the cool chain, using their role as a neutral platform to help stakeholders engage with one another. Issuing a message to companies across the industry, including those they work with, Caristo urges the sector to walk the walk, rather than just talking. “Do things and don’t be afraid of making mistakes because there are no mistakes. Mistakes are just a way of realising you have to do things different. It’s better to do this than to do nothing.”

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We cannot use lack of technology as an excuse anymore because the technology is there

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Riding the wave of digi

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isruption to the global marketplace has been difficult but it has also presented a range of opportunities, as industries, including the air cargo sector, seek to rapidly adapt. it has become evident that companies can’t just stick to the status quo, they have to rise to the moment and embrace change to survive the challenges they are facing and future-proof themselves.

With a sector that is still embroiled in a number of challenges, digital innovation offers a potential way for companies to dodge potential roadblocks. cargo.one has stepped up to position itself as the leading booking platform in the sector, using new technology to offer a smarter way to book cargo capacity.

two minutes. But, when you try to ship general cargo, you need to make five phone calls and send three emails,” Moritz Claussen, co-CEO of cargo.one, said.

“I came from outside the industry and had to learn a lot about it. I’m still learning a lot every day. Curiosity is driving that but, coming from

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steps early if they want to stay ahead, or at least on par with, their competitors.

“There’s a common misconception that technology is the problem. It’s a misconception stemming from years of experience in implementing traditional systems,” Claussen said.

“Technology is not the challenge. It’s really the

There’s a common misconception that technology is the problem

Connecting the world cargo.one’s clear focus on digitialising the air freight industry seeks to connect the world’s air cargo markets, making them more productive, successful and efficient. Using the available system, within a few clicks, users gain full real-time visibility of available routes and rates, as well as instantly bookable offers and confirmation, all completed in less than one minute.

“The market has matured a lot since we started out. Five years ago, we came to the industry and were surprised you could book a passenger flight from anywhere to everywhere digitally in

the outside, I think it was fairly clear the digital world would come in some shape or form because it has everywhere else.” However, despite. the inevitability that digitalisation would sweep through the industry, it wasn’t always welcomed with open arms. “It’s taken a lot of push in the past years to move people along and the industry to where it is today.”

Future-proofing the sector With the events of the last few years fresh in everyone’s minds, cargo.one saw digitalisation as no longer being a question of whether it’s going to happen but how rapidly it can happen. Companies realise that they can’t just wait until a crisis emerges before they have to adapt and alter their practices to continue providing uninterrupted services to customers, they have to take

organisational change.”

When cargo.one meets with companies to discuss its services and establishing a partnership, the question that they are hearing time and time again is “Why haven’t we started yet?”

“The largest airlines in the world are doing digitalisation now,” Claussen stated. Particularly on the cargo side, in the past three years, carriers have made more money on the cargo side than before, “smart carriers invested the money into the future,” Claussen added. “If we integrate a partner, it takes about four weeks to get them online, which means having done the integration and the implementation.”

Partnerships power change For cargo.one, linking airlines with freight forwarders on a digital platform requires strong partnerships with some of the industry’s leading carriers. In recent months, cargo.one has shown that it has no shortage of these, announcing partnerships with Qatar Airways Cargo, JALCargo, Air France KLM Martinair Cargo and, most recently, ITA Airways Cargo to name a few.

Currently offering forwarders 35+ bookable airlines, these deals have seen cargo.one increase its available capacity for thousands of

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digital development freight forwarders in important global markets, such as Asia, Europe and the Middle East.

The rapid expansion on the platform has seen cargo.one style itself as the “the go-to choice for freight forwarders needing rapid and comprehensive visibility of the global market.”

“It’s really important for us to keep our airline partners and freight forwarders happy,” Claussen explained. “To do that, cargo.one spends a significant amount of time working with them to understand their problems, the challenges they might face in the future and how they can work as a company to smooth out the process.”

Remaining at the forefront of digitalisation Looking at the companies they work with, there is a mix of early adopters, who are already processing quite a bit of their business digitally, and players who have the ambition to get to 80-90% digitalisation within the next couple of years.

Then there’s a second group of people who haven’t really started yet and are aiming for 25% digitalisation in the next two-three years.

With the pandemic having sparked a boom in digitalisation, the market is rapidly filling with companies who want to take advantage of the range of opportunities it presents. For cargo. one, this leaves it with a need to keep abreast of innovation and maintain a strong customer-focused approach if it is to maintain and grow its share of the market.

As a company in itself, cargo.one has its eyes on its own growth targets, having already expanded from 35 people in the team before the pandemic to around 130 people today. “There’s massive growth driven by the amount of volume that we process on a daily basis and the work that we do with our customers.”

As Claussen said at a conference earlier in the year, the industry has embraced cargo.one because they love the product but also because of the amount of time the company invests in personal relationships. “It needs education. It needs transparency. We need to help, especially on the airlines side, to onboard local teams.”

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Carving out a market share with specialised cargo services

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pecialising in door-to-door supply chain connections between the US, Europe, Middle East and China, Challenge Group is on a mission to provide the highest reliability in air cargo, delivering goods in great shape and on-time, every time.

Located in the heart of Western Europe, with the words ‘Challenge Accepted’ emblazoned on the side of its aircraft, Challenge seeks to go the extra mile, not just to meet regulations or the minimum requirements but to exceed them, ensuring safety, quality and reliability, even when dealing with some of the most complicated cargo shipments in the industry.

“65% of the cargo that we carry throughout our network is vertical cargo, so the 747 is an amazing aircraft that can take almost everything.

Three out four aircraft, which we operate on those loads, are nose door and help us to keep that market share and go after that special cargo,” Or Zak, commercial vice president of Challenge Group, said.

Tackling the Israeli ban While Challenge Group has offices around the world, it has part of its activities in Israel, something that ran into potential difficulties earlier this year. In September, Israel’s government announced a ban on four-engine aircraft in Israeli airspace to reduce noise and air pollution, with the ban set to come into effect from March 2023. This would have been problematic for Challenge Group, which operates 4 Boeing 747s, each with four engines.

At the time, Challenge Group admitted that they weren’t surprised at the decision, as they had anticipated that something like that could happen. That was part of the motivation for their investment and modernisation of their fleet, with a 767s and 777s joining it. Not only will this help to reduce their carbon emissions, it will keep them commercially and operationally flexible.

While Tel Aviv has since reversed its decision to Challenge Group’s delight, its airline warned that others should monitor what’s happening in other European and Western airports and respond accordingly. “I’m fairly sure that we will keep operating our service to Tel Aviv but, I think we all need to acknowledge that what we saw is the trend and it’s only the beginning. We as an industry have to act.”

Offering a comprehensive service Challenge Group sees its ability to overcome the pressures impacting

the industry as being able to offer a comphrensive, end-to-end package to customers under the group’s umbrella. Not only is Challenge Airlines able to carry specialist cargo, it’s the biggest ground agent in Liège, with nearly 40,000 square meters and a state-of-the-art facility. Alongside that, they have a logistics company, which handles road movement of cargo, with roughly 1,500 hundred truck movements each month.

There’s the maintenance company, designed to support the logistics operations, and a commercial arm working with customers.

“We were quite resilient [during the pandemic] because we weren’t really relying on anyone outside the Challenge Group to be able to provide those services,” Zak said proudly. However, he admits the main concern is manpower nowadays - after all, you can’t run a service, let alone a full suite of them, without a strong team of people.

Challenge Group seeks to tackle labour shortages head on by making the company the most attractive place to work in the industry. Not only do they take great care in the way employees are treated but, due to their range of operations, they can offer vast opportunities for staff to move into different roles across the logistics chain within the group’s umbrella.

Exploring opportunities for further expansion As part of its end-to-end operations, Challenge Group provides an extensive trucking network, as mentioned, moving cargo door-to-door.

In a crowded field of carriers, this helps Challenge Group to stand out against its competitors. Challenge Group isn’t looking to undercut freight forwarders with its range of services - they remain their main customers - but that won’t stop them from targeting key global customers.

There is clear added value in Challenge Group’s focus here, having seen an increase in demand for their door-to-door service and the number of door-to-door shipments that they handle month by month. “The reaction for the market is amazing. That’s definitely a segment which will continue to grow for us,” Zak revealed.

When Challenge Group was bought by its new owners in 2010, they realised that, if they wanted to become more than a regional operator, it would require investment in and expansion of its existing network. They created their European hub, extended the company’s network eastbound into China and other places and boosted the frequency of flights to and number of destinations served in the US. “This trend will continue with the extend capacity that we have with the new fleet,” Zak said.

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he Airforwarders Association (AfA) is the voice of the freight forwarding industry and, at a time of unprecedented change and challenges, there has arguably never been a more important time for the company to support its members.

As an alliance of indirect air carriers, cargo airlines and related businesses operating across the global transportation community, AfA is dedicated to supporting companies moving air cargo through the supply chain. This gives the company a unique insight into the situation across the industry, as well as surrounding truckers, airlines, warehouse operators and businesses delivering a range of supporting services.

It’s a crucial position to help support an industry that plays a key role in moving goods, ranging from medical supplies to live animals to manufactured goods. With e-commerce increasing the number of goods moved by air and the pandemic pushing more businesses online, airforwarders are at the heart of a rapidly growing industry.

Challenging times With cargo not being one-size fits all, different shipments require different delivery methods, have special size and packing needs, as well as temperature requirements. That’s why, as a

Fighting for freigh forwarde

grouping, airforwarders pride themselves on being flexible, collaborative and creative to meet customer needs.

However, while flexibility is a core part of their skillset, freight forwarders are limited by pressures on the industry at home and abroad. The past two years have shown that some challenges are a mountain that can be difficult, if not impossible to overcome.

“The pandemic was certainly the Super Bowl of disruption if you will. I think that freight for-

Most notably, the issue of staffing is hampering freight forwarders, and others in the air cargo industry, as companies struggle to secure the labour needed to meet the demand for their services that they are receiving. “That’s been a big concern. The reality is that has been the biggest challenge we’ve had, from a management perspective and from line workers.”

Evolving processes

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With over 38 years of experience in the airfreight

warders were asked to do extraordinary things, along with their partners, that they had never even imagined,” Brandon Fried, AfA’s executive director, explained. However, while the international environment has settled down in recent years, with elements of normality returning, some pandemic era problems remain.

sector, Fried has seen the industry go through a series of changes and developments, as it adapts to changing times and embraces the potential of new technology. In recent years, with digital processes spreading across the industry, Freid sees “the biggest evolution” in automation advances.

The pandemic was certainly the Super Bowl of disruption if you will

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ng ight rders

“We are adopting technology at rates that, in my career, I’ve never seen before. And I think that is positive. I think what we’ve seen in the past two years has been an exemplary effectiveness of the freight forwarder in creativity, responsiveness, flexibility,” he stated. “We’re working smarter and part of that is employing automation in areas where we used to have a lot of people.”

While technology is going to transform the air cargo industry, Fried is quick to dismiss a concern had by those opposed to automation - “I want to be clear about something and that’s that you’ll never replace people.” As the air cargo sector is built around customer-focused interactions and meeting face-to-face, technology will never take the place of people completely but it will become an effective tool in the belt.

Advocacy When representing members and confronting the challenges they are facing head on, advocacy is key. After all, it’s one thing identifying problems but what companies really need is an association that is seeking to solve them. So, with the transportation industry facing new political challenges each year, AfA works to ensure that government officials are aware of the work done and steps taken by freight forwarders. As an association, it works proactively with airlines,

agencies and stakeholders to promote cargo operations with airlines and positively influence impending regulations.

“The first thing we did is go to lawmakers in Washington, D.C. and regulators and say that they can’t standing in our way. They can’t be the problem.” New emerging modes of technology both excite and concern Fried. He’s delighted at the potential they have for bolstering the sector but fear that technology will outpace policy because “regulators are always slow to get off the dime.”

On the aforementioned labour issue, it’s been important to work with officials, as the current system for hiring staff has delayed their appointment due to security checks and other criteria. “We realise the need for effective security credentialing of workers. We don’t just want anyone out there. But, at the same time, we need to do it quicker and get on with the job.

Education As part of the work that AfA does for the industry, it plays a role in educating those within and outside of the sector, offering training to professionals and sessions on a variety of topics.

This is an important part of AfA’s work when it is seeking to foster a culture of change, as, when listening to those working with freight forwarders, it’s clear they want a more responsive industry before challenges emerge.

“There’s a certain part of the community that will always be reactive when you have that many businesses. But it’s not just reacting to what the customers need...the customers want transparency, responsiveness and easy processes. Those are the things that we give them as an industry.”

Networking In the United States alone, there are currently over 3,500 registered freight forwarders. The industry employs over 100,000 people across thousands of office. Although air cargo represents less than 5% of freight by volume, it represents 30% of global shipment value, 80% of which is managed by airfreight forwarders.

AFA allows for each member to work together, coordinating with one another sharing best practices, new approaches and tips that can help to improve the overall supply chain, raise standards, secure more competitive rates and move products faster and more efficiently.

Having seen supply chain delays and bottlenecks in recent years, AfA sees it as being crucial to work within the industry and alongside politicians and regulators. “We don’t want them initiating regulators that hold up cargo just because they didn’t think what they were doing.”

The message from US Capitol Hill was “loud and clear,” according to Fried. If your cargo is safe, you will exist. If you don’t make it safe, we’re going to have another visit.

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