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The weekly newspaper for air cargo professionals No. 1,255 6 November 2023

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PHARMA.AERO’S PAVES WAY FOR SUSTAINABLE AIR LOGISTICS

INSIDE MESSE MUNCHEN & WORLD ...

MESSE München and World Trade Center Miami are pooling their expertise and will organise a joint conference with ... PAGE 2

REOPENING THE E-COMMERCE ...

n a concerted effort to enhance sustainability within the pharmaceutical and life sciences supply chain, Pharma.Aero, a global collaboration platform, has launched a groundbreaking project focused on defining the key attributes of a green air pharma lane. This pioneering endeavour, named the “Green Air Pharma Logistics Project” is part of Pharma.Aero’s broader initiative to promote environmental sustainability within the industry. The primary goal of this project is to assist pharmaceutical manufacturers and freight forwarders in integrating sustainability considerations into their freight procurement and lane assessment processes, ultimately contributing to their Scope 3 emission reduction targets. Additionally, it seeks to empower freight forwarders and airlines to develop environmentally friendly pharmaceutical products and value propositions, aligning with their customers’ sustainability objectives. Jaisey Yip, Vice President Cargo Business Division at Changi Airport Group and a strategic member of Pharma.Aero, leads this project. She highlights the critical role of this initiative, saying, “Climate change is a global health issue. The Pharma and Life Science industry is regarded as a carbon-intensive sector, and Scope 3 emissions account for over 80% of total emissions generated.” Yip’s leadership in this project is rooted in Changi Airport Group’s commitment to sustainability. She explains, “Sustainability is an important focus area for Changi Airport Group. As airports serve as a common platform for various aviation partners, we believe in actively identifying industry challenges and measures toward building a sustainable air cargo hub.” Pharma.Aero’s Green Air Pharma Logistics Project has received strong

interest and extensive support from a wide range of industry leaders, demonstrating the commitment to sustainability within the pharmaceutical and life sciences supply chain. An interim report, based on insightful interviews with key stakeholders, has already provided valuable context and key takeaways. These insights formed the basis of an interactive workshop held during the Pharma Logistics Masterclass in Singapore, where participants worked together to further define the qualitative and quantitative measurements of a Green Air Pharma Lane. Frank Van Gelder, Secretary General of Pharma.Aero, outlines the organisation’s vision and mission of promoting collaboration. “Today, it is crystal clear that addressing sustainability challenges correctly is only possible through cross-industry collaborative initiatives. Pharma.Aero stands among the trendsetters shaping the industry’s path toward tangible solutions. We embarked on this project fully aware that it may take a few more years to achieve our envisioned goals. Through such projects, Pharma.Aero aims to foster a comprehensive understanding of the industry’s sustainability landscape and identify opportunities for collaboration and improvement. Our ultimate goal is to pave the way towards a greener future for pharmaceutical logistics”, says Pharma.Aero’s Secretary General. The findings of the Green Air Pharma Logistics Project will be presented in a technical report shared exclusively with Pharma.Aero members and partners. Key takeaways will also be part of a white paper accessible to the broader industry and the public, opening up new avenues for sustainable pursuits in pharmaceutical logistics.

Strategic location for the emerging ...

SINCE its launch in 2019, DG International Group’s international e-commerce operation, Pro Carrier, has established itself as a ... PAGE 6

REVOLUTIONISING URBAN AIR ...

IN a bid to transform urban air mobility, UAM, Heron AirBridge and SITA have announced a strategic collaboration ... PAGE 10

ESTABLISHING EUROPE’S ...

WITH Frankfurt ideally situated in the heart of Europe, Lufthansa has ambitious plans to turn its home base into one of ... PAGE 16

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ACW 6 NOVEMBER 2023

MESSE MÜNCHEN & WORLD TRADE CENTER MIAMI JOIN FORCES IN PANAMA MESSE München and World Trade Center Miami will organise a joint conference with “carga logistica Americas Summit” for the transport and logistics industry in 2024. The first edition will take place from 15th-16th October 2024 in Panama City and will focus on the Latin American market.

Latin America in focus The German trade show organiser and the American nonprofit organisation both have many years of experience in organising innovative and leading events. Dr. Robert Schönberger, Global Industry Lead at Messe München, says, “With this partnership, transport logistic Americas and Air Cargo Americas will further strengthen their position in the American market.” Ivan Barrios, President & CEO of World Trade Center Miami, adds, “With a focus on Latin America in 2024, the event serves one of the fastest growing markets in the world, which also plays a critical role in the global transportation and logistics landscape.”

Multimodal hub The 2024 conference event, which will be held in Panama,

will focus on Latin America, as an important hub for various modes of transportation. Panama connects the Atlantic and Pacific oceans and makes the country a key player in global logistics. From the Panama Canal to modern air and sea ports, the location offers a unique infrastructure that serves all modes of transportation and is the gateway to Latin America.

Cooperation For the new partners, the conference in Panama is intended to be the starting point for both event brands to then return to Miami together in the fall of 2025 and build on their successes. Messe München will contribute its strong international network and expertise in trade fair organisation, while the World Trade Center Miami will primarily contribute its close networking in the local economy and reliable relations with Latin America. Barrios and Schönberger jointly agree: “We want to create relevant platforms for the industry so that exhibiting companies can maintain existing contacts, as well as make new ones and above all initiate business.”

NEWS

Enabling China’s economic expansion

n 1993, SF Express embarked on its journey as a logistics company in China. Sixteen years later, in 2009, the company took its ambitions to new heights with the launch of SF Airlines, its dedicated cargo airline. Over the years, SF Airlines has grown, leveraging the region’s economic prowess and

the explosion of e-commerce to solidify its position on the global stage. With a fleet now numbering over 84 freighters, the airline has established a global footprint that spans more than 30 international destinations and covers over 15 countries. This growth is intrinsically tied to China’s ascent as an economic

powerhouse. The country’s robust air cargo traffic growth, averaging 6.2% annually, speaks volumes about its expanding manufacturing and production capabilities. As a manufacturing hub for commodities ranging from clothing and automobiles to computers and telecommunications equipment, the demand for air cargo capacity has surged. The rise of e-commerce presents a significant strategic opportunity to harness the rise of central China, accelerating the advancement of high-quality integrated urban and rural development. SF Airlines has become a vital component of China’s e-commerce sector, facilitating the movement of goods between domestic markets and the rest of the world. Central to SF Airlines’ operations is its newly built strategic cargo hub in Hubei Province, which serves as a crucial nexus for its global operations. The Ezhou Huahu Airport, home to the hub, offers comprehensive services, including fast-handling sorting centres, maintenance facilities, and an international cargo terminal. This strategic choice has enabled SF Airlines to optimise its operations and contribute significantly to regional and global connectivity. Robert Zhang, Commercial Director of SF Airlines, highlighted, “By being centrally located in China, the airport has the advantage of connecting to most of the tier-one cities in China within a two-hour flight.”

Cargo-focused The significance of the Ezhou Huahu Airport is amplified by its role in connecting the region to the world. Since its opening in July 2022, the airport has carved out a niche as a cargo-focused professional airport with robust cargo traffic. SF Airlines has seized the opportunity to establish partnerships with international carriers like Etihad Cargo, thereby expanding its global reach and enhancing its express logistics presence. This collaboration aligns seamlessly with SF Airlines’ mission to grow its parcel delivery capabilities worldwide. The expansion of SF Airlines’ hub in Ezhou is not without direction. The airline has strategically established international routes to key markets. These routes extend from Liege in Belgium to Chennai and Delhi in India, New York in the USA, Frankfurt in Germany, and Abu Dhabi in the UAE. Moreover, there are ambitious plans in place to add more international routes to this roster. This initiative bolsters China’s connectivity to critical global trade partners and reinforces its role in the international supply chain “SF Airlines will continue to develop international routes in Ezhou, improve the service capabilities of the international supply chain, help Ezhou Huahu Airport to build a worldclass air cargo hub and boost the high-quality development of the local air logistics industry and export-oriented economy,” Zhang stated.

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Keeping goods moving A deeper look into SF Airlines’ cargo reveals a diverse array of goods being transported from Asia to the rest of the world. The airline plays a pivotal role in moving products like retail items, garments and clothing, electronics, perishables, and pharmaceuticals. This highlights the multifaceted nature of China’s export portfolio and underscores SF Airlines’ importance in catering to various industries. The turbulence caused by recent fluctuations in airfreight demand hasn’t escaped SF Airlines’ notice. These changes have prompted the airline to recalibrate its operations and explore new avenues to ensure operational resilience. “There are uncertainties in the international economic recovery, the overall decline in international freight traffic, and the accelerated recovery of passenger transport brings additional challenges to the supply of belly space capacity,” Zhang said. “However, we believe that both companies are well positioned to take advantage of their respective capacity networks and the location of Ezhou and Abu Dhabi airports.”

Partnerships produce results SF Airlines’ partnership with Etihad Cargo stands out as a key milestone in its journey. The collaboration enriches SF Airlines’ Middle East footprint and taps into Etihad Cargo’s expansive global network. The flights not only facilitate the transportation of goods, but also shorten the distance to Ezhou, playing a crucial role in projecting Ezhou further onto the international stage. As a resource-intensive city predominantly engaged in steel, construction materials, and other heavy industries, with low industrial added value, Ezhou can leverage international direct flights to introduce new resources. This will provide a much-needed boost to its economy, inject vitality into the city’s economic landscape and accelerate its development. First and foremost, it directly stimulates the airport economy. Secondly, it indirectly attracts more suppliers and job opportunities, not only drawing in hightech talents but also fostering urban economic growth. Lastly, it fuels additional expenditures, hastening the development of import and export trade between China and foreign nations. Li Sheng, Vice President of SF Holding Group and Chairman of SF Airlines, emphasised the strategic significance of this partnership: “SF Airlines is excited the two companies can work together to connect hubs and strengthen the network of both airlines.” This partnership with Etihad Cargo facilitates greater connectivity for SF Airlines’ customers and offers diversified transportation options. As SF Airlines aligns with global giants like Etihad Cargo, it enhances its ability to provide seamless connectivity along the ‘Belt and Road’ initiative, fostering deeper ties between China and other regions.

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Reopening the e-commerce market SINCE its launch in 2019, DG International Group’s international e-commerce operation, Pro Carrier, has established itself as a leading independent shipping service capable of managing parcels with multiple carriers to ensure the most efficient journey for customers’ goods. Its customers include some of the UK’s largest retailers, such as JD Sports, Ted Baker, and Oh Polly. With facilities in China, the UK, and the EU, as well as direct routes to more than 25 countries around the world, Pro Carrier is ready to collect and deliver to more than 200 countries, including all major markets. Currently, the Pro Carrier team is developing long-term European expansion plans and establishing partnerships as part of its strategy to reopen the e-commerce market between Europe and the UK after Brexit,” Guy Fischer, Managing Director at Pro Carrier, said. “And we are continuing to expand at a rapid pace.”

Multimodal movements A seamless supply chain requires a seamless multimodal network. One way Pro Carrier achieves this is by collaborating with other companies to optimise parcel transportation. This not only reduces emissions caused by deliveries but also ensures that parcels reach the customer’s door more quickly. DG International Group has expanded it capability across a whole range of areas such as additional operational sites, automation of parcels processing, extra direct lanes, extra carriers on key lanes and additional air gateways. It has also developed its EU business to support UK companies who have moved stock to EU based distribution centres post Brexit. “To manage growing demand, we have instilled a culture of consistent planning,” Neil Bulfield, Head of Air Freight at DG International Group, explained. “Successful plans are built around volume forecasts, which must be constantly adapted as volumes change throughout the year, new products are introduced, and demand fluctuates.” “This means refreshing your approach after each ‘peak,’ starting with a review, identifying lessons learned, and using these insights to develop a plan for the next peak,” he continued.

Riding surges Managing fluctuating demand may seem challenging, but close relationships with partners enables DG International Group to receive regular forecasts for predicting volumes. These relationships also help address any customs or crossborder issues that may arise. In the case of high delivery costs, as a multi-carrier operator, Pro Carrier has access to a wide range of final-mile

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options, putting pressure on final-mile operators to maintain reasonable delivery costs. Any significant rate increases pose a risk of Pro Carrier diverting volumes to alternative carriers. This approach also ensures that performance is consistently maintained. Effective planning is crucial to maximise customer satisfaction and minimise financial risks during peak seasons. Having a clear understanding of the volume that needs to be handled and how to manage fluctuations is essential. Developing a flexible solution with contingency plans in place for volume variations allows for real-time evaluation of your requirements. This approach enables DG International Group to make necessary adjustments to minimise the impact on delivery times, prevent customer dissatisfaction, and avoid significant cost overruns when volumes deviate from expectations. To manage airspace during peak seasons, DG International Group maintains ongoing communication with its clients and e-commerce partners to ensure the most accurate forecasting possible. This involves implementing block space agreements and capacity agreements with strategic airline partners while maintaining close communication with them to ensure that capacity is maintained as needed. In addition to seasonal holiday peaks, fluctuations can also occur when new products are launched, impacting demand. Therefore, it’s important to be aware of these effects on capacity. “At DG International Group, we invest in systems that enhance the customer experience by providing transparent data and supply chain visibility from the retailer to the final mile using our custom platform, Horizon,” Bulfield said. “This platform includes tracking, vessel details, financial reporting, shipment approvals, and invoicing, allowing customers to access information quickly and reducing the number of enquiries.”

has already led to a drastic reduction in the number of parcels held at Customs for our e-commerce retail customers. “By collaborating with Hurricane and AEB, we have gone from having 30% of parcels held in peak 2021 to less than 1% in peak 2022, giving customers confidence that their products will arrive on time,” he added. These processes help play into DG International Group’s strategy for avoiding disruptions, including unexpected surges in demand or delays caused by weather, by helping establish a flexible plan that can adapt as needed. It’s crucial to identify individuals within the workforce who can step into different roles during times of crisis. This also extends to securing additional resources through early

Processes and partnerships Pro Carrier and DG International Group are dedicated to selecting the right partnerships to streamline processes and enhance services for customers. An example of this is the recent strategic partnership with Hurricane Commerce and AEB SE, which has significantly reduced hold rates for online retailers by improving Customs processes. “This collaboration combines the best in shipping and delivery, data and technology, and customs management processes,” Fischer stated. It has been developed in response to heightened restrictions and checks at borders for UK distributors shipping into the EU and those sending products into the UK. The new partnership

discussions with suppliers, ensuring that a process can be swiftly implemented when necessary. “We also offer alternative routing options to circumvent weather-related disruptions. For instance, in Europe, we can leverage our trucking network to connect with flights bound for the parcel’s final destination,” Bulfield said. “Strong relationships with partners are essential in ensuring that we receive the highest priority to mitigate potential risks and disruptions, thereby maintaining customer satisfaction through proactive measures.”

NEWS

Gateway into the Golden Triangle

HOME to the UK’s largest dedicated air cargo hub, East Midlands Airport (EMA) provides connections to 185 of the world’s largest cities and moves around 440,000 tonnes per year. The airport’s position in central England and a stone’s throw from the motorway network allows EMA to perfectly serve the whole of the UK, with 90% of the population of England and Wales only a four hour drive away. This strategic location is reflected in how each of the three logistics giants, DHL, UPS and FedEx, have chosen EMA as their main UK hub, forming part of their US-UKEurope network. “This ‘hub and spoke’ network brings incredible global connectivity to this region,” Steve Griffiths, EMA’s Managing Director, highlighted. “185 of the world’s largest cities including ‘powerhouses’ such as New York, Singapore, Dubai, Hong Kong, Tokyo, Paris, Mumbai, Jakarta and Frankfurt (to name a few) and ‘second-tier’ cities such as Bogota, Tel Aviv, Cape Town, Seattle, Nairobi and Panama City can be reached from EMA within one stop.”

Movements through the Midlands As would be expected from such a key cargo hub, EMA draws traffic from across the UK. However, its core areas are in the manufacturing heartlands of the Midlands. There is a significant cluster of businesses within EMA’s catchment in the advanced manufacturing, aerospace, healthcare, pharmaceuticals and automotive sectors. Some of the key beneficiaries of EMA’s services include, but are not limited to; Rolls Royce, manufacturing vehicles only 12 miles away from the airport, which is capable of accommodating large cargo transport aircraft, and Morningside Pharmaceuticals, moving over 240 generic and branded licensed medicines to their global network of customers. These established firms in the region are being joined by a growing number of major logistics firms, which are opting to locate themselves in and around the airport. This has only increased with the recently developed East Midlands Gateway site, itself close to a new East Midlands rail freight interchange. A report on the economic effects of EMA’s cargo operation commissioned by EMA’s parent company Manchester Airports Group last year concluded that it is likely the airport is supporting the continued presence of a fifth of the top 500 corporates in the East Midlands and their contribution to regional Gross Value Added (GVA). It noted that the East Midlands has the fourth highest foreign direct investment stock as a percentage of regional Gross Domestic Product (GDP), meaning there is strong and growing demand for international air cargo connections, especially as capacity reduces at airports in the south-east. In terms of exports, EMA’s modelling suggests that

ACW 6 NOVEMBER 2023

around 41,000 tonnes of cargo (21%) originated from the West Midlands in 2020, while goods from the East Midlands equated to 55,000 (29%). This clearly demonstrates that East Midlands Airport is a unique and critical asset for the entire Midlands region. “EMA’s cargo operation benefits the whole of the UK, but especially businesses across the Midlands in the so-called ‘Golden Triangle’ within the M1, M6 and M42 motorways, who need to reach customers urgently,” Griffiths explained.

Handling high value goods Since 2013, EMA has seen a steady growth in annual cargo volumes, but the Covid-19 pandemic supercharged this. In 2020, volumes were up 13% on the previous year which increased the airport’s share of the overall UK air cargo market. This growth reflected greater consumer use of e-commerce during lockdowns, but also a move by businesses to use more secure end-to-end supply chains. “The new connections that have been made are expected to stay,” Griffiths said. “Indeed, discussions with EMA’s major operators suggest that the airport’s connectivity is in fact expected to ‘kick on’ from the growth seen in the pandemic, with further increases in European and intercontinental connections.” The criticality of the EMA cargo operation is not just about the connectivity it provides. Of equal importance is the high value nature of the cargo that is handled at the airport. On average, an export tonne of goods passing through EMA is worth around £335,000. This is 1.9 times the average for other UK airports and 168 times higher than the average for a tonne passing through other UK ports. “Air cargo is used for high value goods that require speed

and/or security of delivery. Advanced manufacturing sectors are by some margin the largest users, but it is interesting to note in particular the major presence of aerospace within the analysis, especially for exports,” Griffiths laid out. “Other key user sectors are the fashion, healthcare and pharmaceuticals, and automotive sectors,” Griffiths continued. “It is interesting to note the similarity between the sectors exporting and importing, reflecting the airport’s dual role in providing access to markets and supporting global supply chains.”

Infrastructure for the future The East Midlands Freeport is ‘open for business,’ with EMA acting as the port for the UK’s only inland freeport. The focus is now on attracting investment into the main tax sites particularly at Ratcliffe-on-Soar Power Station and the East Midlands Airport and Gateway Industrial Cluster site. The airport’s Western Maintenance area, which sits within a tax site, is earmarked for expansion of critical cargo infrastructure. Its future use is likely to appeal to an integrator business as the area offers unique airside access and would complement the adjacent DHL operation and provide extra cargo stands and apron space. “We will use the halo effect of the freeport to position EMA as the UK’s best placed airport for facilitating air cargo to attract new cargo airlines,” Griffiths stated. “EMA is the UK’s number one pure air cargo airport, operating 24/7 from the heart of the UK and we have available capacity at the airport to handle more freight. As a dedicated cargo operation, we can provide a better, more reliable service which isn’t vulnerable to passenger flight prioritisation at other cargo airports.”

NEWS

WFS to grow capacity at New York JFK

Finnair Cargo takes a step towards selfsufficient energy production

WORLDWIDE Flight Services (WFS), a member of SATS Group, will increase cargo capacity at New York’s John F. Kennedy International Airport (JFK) by 20% in early 2025 with the opening of a new 346,000 sq ft terminal incorporating advanced technology and sustainability solutions. New York JFK is one of WFS’ biggest international cargo stations. WFS already operates eight handling facilities at the airport, serving 38 airline customers. The new facility will take the company’s footprint at North America’s sixth largest cargo airport to over 700,000 sq ft and grow capacity to more than 675,000 tonnes per annum. The opening of the new WFS facility will give JFK its first dedicated on-airport handling facility for temperature-controlled pharmaceutical products and perishable cargos. The cargo terminal is also designed with the latest technology and digital solutions to offer current and future customers 20% growth capacity, supported by WFS’ investment in new automation solutions. These include the terminal’s dock management system, ETV system, and process automation. “When the facility opens in Q1 2025, we will increase our ability to offer airlines and the air cargo community in New York the opportunity to carry more special and premium cargos and support the growing demands of businesses and consumers in the US and globally. By incorporating scalable systems and forward-looking solutions, the building will remain versatile and responsive to evolving customer and industry needs as well as emerging technological advancements,” said Mike Simpson, Chief Executive Officer, Americas at WFS. “Furthermore, our customers can be assured that we will continue to deliver the accurate and reliable service they have come to expect from us.” In line with SATS’ global sustainability goals, a key consideration in the cargo terminal’s design, the new building will use renewable energy provided by solar panels to lower its carbon footprint. Additionally, energy efficient windows, lighting, ventilation, air conditioning systems and the use of electric forklifts, slave pallet movers, and ground support equipment will contribute to the terminal’s environmental efficiency. The terminal’s 26-acre site will also provide ramp space for three wide-body aircraft.

FINNAIR Cargo is making a move towards fully self-sustainable energy production in November – just in time to celebrate Finnair’s 100th birthday. Throughout the summer and autumn months, Finnair Cargo has installed an additional 1790 solar panels to the roof of its COOL Nordic Cargo Hub at Helsinki Airport in Finland. These join 1200 panels installed when the terminal was originally constructed and provide enough energy on sunny days to sustain the cargo space in full and feed surplus energy to other Finnair facilities. “With this addition, the COOL Nordic Cargo Hub will be the third largest solar panel energy production unit in Finland. At the maximum level, the solar power station can produce over 1,1 MW peaks, more than tripling our production”, SVP Finnair Cargo Gabriela Hiitola, said. After the COOL solar park upgrade, solar panels produce the equivalent of 37% of annual COOL electricity consumption. On a sunny day, the COOL terminal is completely self-sufficient and the excess production will be fed to other Finnair facilities. The COOL Cargo terminal, opened in 2018, was designed with sustainability principles in mind. In addition to the solar panels providing part of the energy needed for the terminal’s operations, both operational efficiency and waste management have been carefully planned. Additionally, Finnair is also installing 645 solar panels on the roof of a hangar building used for aircraft maintenance. The solar panel installations are part of Finnair’s sustainability programme during its centenary year. “It is clear that the aviation industry is still waiting for those big solutions to reduce flight emissions. However, in the meantime we keep on working towards more sustainable operations in all areas”, says Hiitola.

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NEWS

Revolutionising urban air mobility

IN a bid to transform urban air mobility, UAM, Heron AirBridge and SITA have announced a strategic collaboration. Combining Heron AirBridge’s expertise in unmanned aircraft system traffic management (UTM) with SITA’s innovative vertiport solutions, the two sides hope to unleash the potential this technology offers. “The use of unmanned Air Systems (UAS) can help deliver significant efficiencies and actively contribute to developing more sustainable solutions for the benefit of our environment and our society,” Fabrice Ancey, Chief Commercial Officer of Heron AirBridge, said. As more industry sectors are now actively exploring and adopting the use of UAS to digitise some of their traditional operational processes and reduce corresponding costs, an increase in drones flying in our skies will require careful low level airspace management to maintain safety of all airborne drone operations from different operators simultaneously and uninvolved individuals on the ground while ensuring the network stays clear of manned air traffic. Heron AirBridge is the first UTM technology company in Southeast Asia, following the successful launch of a UAS traffic management system capable of managing multiple drone operators. The company’s management team collectively has 70+ years of military and civil aerospace expertise. Heron’s UAS Traffic Management (UTM) is an advanced solution that helps operators comply to the “rules of the sky” seamlessly and ensure full safety and security of their UAS operations. It is a fully dynamic solution that can scale automatically to accommodate to operators’ needs. It helps to overcome challenges in complex urban airspaces and remove blind spots for full situational awareness in Beyond Visual Line of Sight (BVLOS) drone operations. The system also offers governments and law enforcement an overall view of the UAS network to ensure its security and overall integrity is constantly maintained.

Integrated solutions As larger eVTOL operations slowly become commonplace and grow in numbers, it will become essential to carefully manage their traffic between vertiports alongside other unmanned air traffic and existing manned aviation. While the Vertiport Management System (VMS) will manage its network of vertiports, planning and scheduling of departures and arrivals, Airbridge UTM will complement it by bridging the vertiports together. Airbridge’s advanced AI will help operators ensure safe and efficient use of the airspace to imposed regulations, enable realtime data exchange between the VMS, the drone and eVTOL operators and the UTM, and estimate precise ETAs that will in turn help the VMS ensure vertiport demand and

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capacity are always kept in balance to avoid delays and maximise on-time performance. “The operations will in fact present some distant resemblance to existing airports/airlines/air traffic control operations in today’s manned aviation, albeit in a more dynamic, integrated and automated approach,” Ancey explained. “The key objective of this partnership is to help shift the transportation industry towards incorporating aviation within its existing ground transportation networks offering passengers integrated multi-modal transportation choices for greater flexibility and efficiency.”

management of all eVTOLs flights by allocating predeconflicted routes to each aircraft in the VMS network and then tracking them once airborne to ensure full conformance to their operational corridors until safe landing at the arrival vertiport. “Such an international partnership will not only help advance, test and evaluate new AAM technologies and corresponding concept of operations but will also further support the development of global and robust regulatory frameworks for better transparency, safety, security and efficiency of this future industry that is vital to ensure public acceptance and enable this sector’s economic growth,” Ancey continued. “With AAM being expected to contribute towards reducing carbon emissions, we also hope the new solution resulting from our partnership will positively contribute towards international efforts to reducing carbon emissions in our fight against climate change.”

Future focus

Expert efficiency As a key player in the air transport industry’s IT provision, SITA brings extensive expertise and is a key innovator in airport and connectivity solutions to drive operational efficiencies. The development of a VMS represents a natural expansion of airport operations to future vertiports in preparation for the next generation of transportation offerings. Heron complements SITA’s expertise through its extensive knowhow in UAS Traffic Management. “SITA and Heron’s solutions are fully complementary and the integration of the two will ensure the establishment of a fully dynamic solution that is designed to deliver maximum safety, security and efficiency,” Ancey highlighted. While SITA focuses on the detailed solution and corresponding processes needed for the smooth functioning of the vertiports, Heron focuses on the traffic

The establishment of a highly efficient AAM/UAM network will require vertiport infrastructures that combine advanced ground operational processes with high levels of automation which this project aims to innovate today. Once completed, it is expected to help shift the transportation industry towards incorporating aviation within its existing ground transportation networks offering passengers integrated multi-modal transportation choices for greater flexibility and efficiency in and out of urban environments. It will also actively contribute to the aviation industry’s move towards more customer-centric business models offering passengers greater convenience and experience. “As the solution matures, thorough evaluations in a simulated environment will be undertaken to ensure the system operates as designed and to the expected levels of resilience,” Ancey stated. “Subject to satisfactory simulated tests, live trials will then be conducted in the next year to gather data to further enhance the overall solution and prepare for future commercialisation.” Airbridge UTM is at the heart of Heron’s aim to promote aviation sustainability. The system’s advanced Artificial Intelligence coupled with machine learning, allows it to continuously optimise routes and facilitate decision making so operators can make better informed decisions and minimise energy consumptions. “A key objective of Airbridge is to help organisations scale up electric drone operations and redefine their operational processes which in turn will help reduce transportationbased carbon emissions,” Ancey highlighted.

NEWS

Calls for a new AI approach in air cargo USER-FRIENDLY technology that leverages the full potential of artificial intelligence (AI) is vital to ensuring digital solutions are dynamic enough to meet the changing needs of the air cargo industry, according to Vitaly Smilianets, Chief Executive Officer of Awery Aviation Software (Awery). Speaking at the Caspian Air Cargo Summit 2023 (23-25 October), Smilianets explained that AI-driven solutions are key to helping air cargo stakeholders achieve better process control, increase efficiencies, and the best user experience. However, these benefits have not been fully realised, in part due to overly complex platforms and a lack of training, rendering the industry’s greatest ally an unwieldy accessory. “Awery has long called for the need to accelerate digitalisation, and historically accessibility has been a key barrier to widespread adoption – the way forward is to focus on easy-to-use interfaces and apps,” said Smilianets. “Tech providers should focus on developing tools that are nimble and adaptable to meet the needs of the dynamic air cargo industry. “One solution is to leverage the smartphones we have at

our disposal by developing apps that help users complete tasks such as cargo booking or track and trace, whether they are in the office, at the warehouse, or on the ramp.” The aviation software provider is developing several apps that support its Awery ERP product, a web-based platform that automates aviation business processes, including managing sales, operations, finance, and HR. “The rise of AI signals an exciting time for the industry, and we are seeing more and more practical applications of the tool, including increasing efficiency by automating laborious manual processes and providing more secure payments with blockchain,” said Smilianets. Awery also supports its customers with an AI tool, eMagic, which converts email and text enquiries from various formats and languages into a standard data format, eliminating the need for costly and time-consuming manual processing. This information is utilised by CargoBooking, Awery’s freeof-charge online quotation and booking portal, in addition to its payment and track and trace services, providing a complete end-to-end fulfilment solution.

Swiss WorldCargo and Sonoco ThermoSafe announce global master lease agreement SWISS WorldCargo, the expert carrier in transporting highvalue, care-intensive, and temperature-sensitive shipments, has announced its partnership with Sonoco ThermoSafe. The two industry leaders have signed a global master lease agreement for the deployment of Sonoco ThermoSafe’s innovative Pegasus ULD® temperature-controlled bulk shipping container. This collaboration paves the way for pharmaceutical freight forwarders to access the Pegasus ULD® fleet directly through Swiss WorldCargo as of Winter Timetable 2023/2024, further enhancing the safe and efficient transportation of customers’ cargo shipments. Sonoco ThermoSafe’s Pegasus ULD® represents a modern, Federal Aviation Authority and European Union Aviation Safety Authority approved solution that enables cost-effective international airfreight handling and customs processes. With the creation of their Pegasus ULD® Sonoco ThermoSafe with composite materials, Sonoco ThermoSafe is showcasing a strong commitment to sustainability, offering a solution that is both lighter and more damage-resistant compared to traditional metal containers. Additionally, the container incorporates a fully integrated, FAA-approved telemetry system, providing real-time, cloud-based data on payload, ambient temperature, and other critical environmental factors, all precisely synchronised with GPS location. Swiss WorldCargo, renowned for its dedication to safeguarding the integrity of pharmaceutical and healthcare shipments, operates an extensive CEIV Pharma certified global pharma network, including its Zurich hub, which is double certified – GDP compliant by Swissmedic and IATA CEIV Pharma. Recently, Swiss WorldCargo announced the launch of SWISS Pharma and Healthcare, its new flexible product designed to meet the unique growing needs of its customers in regard to pharmaceuticals logistics. “We are excited to partner with Swiss WorldCargo. Healthcare companies and their logistics providers can access the Pegasus ULD fleet via Swiss WorldCargo’s extensive global network and through their branded products SWISS Pharma & Healthcare, General Cargo and Perishables. We are delighted the Pegasus ULD will offer a unique choice for pharma shippers as a one-of-a-kind Advanced Passive Temperature Controlled Container (TCC)”, said Bourji Mourad, Director of Global Logistics and Partner Management for Sonoco ThermoSafe’s Bulk Rental Group. Christian Wyss, Head of Cargo Offering Development and Steering at Swiss WorldCargo, stated: “Our SWISS Pharma and Healthcare product has been highly refined to meet the evolving demands of our customers when it comes to pharmaceutical consignments. We look forward to offering soon the Pegasus ULD as part of our transportation/temperature solutions for rental, ensuring further safe and efficient transport of timeand temperature-sensitive healthcare freight.”

ACW 6 NOVEMBER 2023

NEWS

TONNAGES AND RATES STABILISE AFTER RECOVERY FROM GOLDEN WEEK GLOBAL air cargo tonnages and rates appear to have stabilised after recovering from China’s National Day Golden Week in early October, according to the latest weekly figures from WorldACD Market Data, although there are no clear signs yet of any significant fourth-quarter (Q4) peak season – despite anecdotal reports from some freight forwarders of a slight seasonal tightening of the market.

Weekly analysis Preliminary figures for week 42 (16 to 22 October) show a +1% increase in tonnages and in global average rates, compared with the previous week, based on the more than 400,000 weekly transactions covered by WorldACD’s data. That follows a +4% week-on-week (WoW) recovery the previous week following a -6% drop during the first full week of October, corresponding with China’s Golden Week holiday break. Comparing weeks 41 and 42 this year with the preceding two weeks (2Wo2W), overall tonnages, worldwide rates and also capacity increased by +1% versus their combined total in weeks 39 and 40. At a regional level, decreases in tonnages (2Wo2W) were recorded most strongly on flows outbound from Europe to, respectively, Africa (-8%), Central & South America (-8%), and Middle East & South Asia (-7%). Elsewhere, tonnages were down ex-Asia Pacific to Middle East & South Asia, and ex-Middle East & South Asia to Europe (-5%). The biggest percentage increases were found on flows to Asia Pacific, from Europe (+11%) and Middle East & South Asia (+8%), while intra-Asia Pacific tonnages also rose strongly (+11%) on a 2Wo2W basis. Other notable increases were recorded from Africa to Europe (+7%) and ex-Central & South America to Europe (+5%),

ACW 6 NOVEMBER 2023

while there were modest tonnage and rate increases (+2%) on the big markets ex-Asia Pacific to both North America and Europe. Elsewhere on the pricing side, regional rates showed an increase, on a 2Wo2W basis, on flows ex-North America to Asia Pacific (+7%), and ex-Europe to North America (+5%) and Africa (+4%). Decreases were recorded ex-Middle East & South Asia to Asia Pacific (-4%), ex-Africa to Europe (-4%), and ex-North America to Europe (-3%).

Year-on-Year perspective Comparing the overall global market with this time last year, chargeable weight in weeks 41 and 42 was down just -1% compared with the equivalent period last year – one of the smallest yearon-year (YoY) declines recorded in 2023 – with the most-notable changes on an origin region level being a +8% rise ex-Middle East & South Asia and a +7% increase ex-Asia Pacific. Tonnages were also up ex-Central & South America (+7%) and ex-Africa (+2%). But, similar to previous reports, there were significant decreases in tonnages ex-North America (-12%) and ex-Europe (-11%). Overall capacity has increased by +12% compared with last year, as passenger air services continue to return to the market, with capacity ex-Asia Pacific up by a noteworthy +34%. Other significant YoY capacity increases can be observed ex-Middle East & South Asia (+13%), ex-Europe (+9%) , ex-North America (+10%) and ex-Africa (+10%), while a drop was recorded ex-Central & South America (-4%). Worldwide average rates are currently -28% below their levels this time last year, at an average of US$2.38 per kilo in week 42, although they remain significantly above pre-Covid levels (+33% compared to October 2019).

NEWS

HOW SUSTAINABILITY IS CHANGING THE LOGISTICS SECTOR BAXTER Freight and Nottingham Trent University have been awarded funding for a Knowledge Transfer Partnership (KTP) focused on sustainability within the logistics sector. This is the next leap forward for the Nottingham based freight forwarder who are focused on driving sustainable innovations within supply chains and decreasing their impact on the environment. The logistics and transport sector contributes just over a third of global carbon dioxide (CO2) emissions, making it the largest-emitting sector in numerous developed countries. (ISO.org) This sector is essential to the global economy, helping supply chains to keep moving, transporting essential (and non-essential) goods around the globe. Supply chains are complex, in the UK alone there are around 61,303 road freight businesses, and all of them will need to evolve their operations to be more sustainable and future ready. This will not only impact hauliers and shippers globally, but this will affect any business moving goods in any volume around the UK and the rest of the world. It is a necessary evolution of an industry that has traditionally

been slow to move with the changes and is the greatest challenge the logistics sector has ever faced.

Bring in the experts The KTP in sustainability is part of an ongoing strategic partnership with Nottingham Trent University (NTU), Nottingham Business School (NBS) and Baxter Freight. This collaboration brings industry, academia, and emerging talent together to keep future focused and poised for change. Climate change and the drive to net zero is a daunting task that has left many businesses globally grappling into an empty void, not knowing where to start or to seek advice. Baxter Freight was in this very same position and has slowly begun to build the partnerships necessary to create the change and the KTP is a big part of that. The money awarded with this project will allow Baxter Freight to work with leading academics within the field of supply chains, sustainability, organisational change and marketing as well as to recruit an associate to work within the organisation.

DANX CAROUSEL SETS OUT ROADMAP FOR DIGITAL TRANSFORMATION DANX Carousel Group’s thought leadership white paper, ‘Logistics 5.0: Strategy Beyond Data – Turning Uncertainty into Opportunity,’ has concluded that adaptability, resilience, and carbon footprint reduction are the key areas for technology investment to focus on as the supply chain industry enters the next chapter of digital transformation. The report, which surveyed supply chain leaders, acknowledges the leap forward brought about by digital transformation from Logistics 4.0, but forewarns how Logistics 5.0 will demand a broader approach to how technology is used. “When deciding on new technology to support your business it is important, from a technology perspective, not to be overly excited by the new shiny toys out there,” said Thomas Wad Jelle, Chief Technology and Information Officer, Danx Carousel. “Instead, focus on the business risks and customer requirements to understand what needs to be solved and how technology can be part of that solution. “There is no silver bullet for bringing your data perfectly together across companies and supply chain.” In a note of caution, the white paper highlighted concern among those surveyed over the worrying lack of talent needed to make successful digital transformation and development possible. The report revealed that 21 percent of organisations attributed their experienced disruption to a loss or lack of talent, while 15 percent are struggling to find the right people to lead their organisation into this new era of optimisation. “Technology is the enabler, not the solution,” said Ulrik Find, Chief Operations Officer, DANX Carousel Group, adding that tapping into the talent pool and attracting the right people to a career in the supply chain industry is essential. Find illustrated his point by pointing to the example of organisations that had the right tech during the pandemic, but lacked the “nimble, ‘fleet of foot’ mentality” embodied by many start-ups who thrived. When setting out his three-point roadmap to transformation, Find also emphasised the need for a “mindset shift” among industry leaders, calling for them to reinvent how they attract talent, who they do business with and why, how they build their strategy, and where they allocate their capital. “The dawn of Logistics 5.0 has very much arrived – it marks a new phase in the supply chain, one that is heading toward an increasingly digital world, but this time with the incorporation of sustainability and learnt lessons from the past,” concluded Find. The white paper was published in conjunction with a leading business intelligence company, and was released at Group launch events in London and Stockholm earlier in October.

ACW 6 NOVEMBER 2023

E-COMMERCE

STRATEGIC LOCATION FOR TH MARK

“You have a country that is able to cut through the bureaucracy, and get things going”

ACW 6 NOVEMBER 2023

aking significant strides in the world of e-commerce logistics, Emirates SkyCargo is looking to leverage its strategic location in the United Arab Emirates (UAE).

Dubai finds itself well positioned to serve both the manufacturing world in Southeast Asia, including countries like China, India, Pakistan, and Bangladesh, as well as markets in Europe, the United States, the Middle East, and Africa. This central location allows for quick access to various markets, making it highly attractive for e-commerce companies aiming to reduce delivery times and remain competitive. In an exclusive interview with Air Cargo Week, Nabil Sultan, Divisional Senior Vice-President at Emirates SkyCargo, highlighted the carrier’s key position to deliver swift and efficient deliveries. “I know a lot of a lot of countries claim that they are the centre of the world. But it’s not just about being in the centre of the world, it’s about ensuring that have a network that actually works,” Sultan highlighted. “You have a country that is able to cut through the bureaucracy, and get things going. Dubai has always created a conducive environment for businesses, distribution centres and even manufacturers.” By fostering an ideal ecosystem for e-commerce companies, Dubai has contributed to the UAE’s growth into a key international trade hub, connecting emerging and longstanding markets around the world.

Accelerated growth The COVID-19 pandemic has played a key role in fuelling the rapid growth of the e-commerce industry, with the sector experiencing almost a 20% annual increase. To meet the demands of this dynamic market, many major retailers and e-commerce companies are considering Dubai as a primary distribution hub. “There’s a clear trend that we’ve created in Dubai here, where there’s a huge reliability factor for a lot of the distribution centres,” Sultan stated. “The Emirates just gives e-commerce companies the reach the capacity into different parts of the world, almost on a daily basis.” Its proximity to both manufacturing hubs and consumer markets offers a unique advantage in the world of e-commerce. “With e-commerce being very competitive nowadays, the key is to get the product to its destination in a shorter span of time. That’s what gives Dubai its USP and why we’re seeing more and more retailers, e-commerce companies, etc moving their distribution here.

Dedicated delivery Emirates SkyCargo has a special wing known as “Emirates Delivers”, working to serve the e-commerce sector by connecting shoppers with e-retailers via door-to-door delivery. The division focuses on providing efficient and reliable delivery services to meet the unique demands of these companies, continually expanding to better serve global markets. Emirates Delivers initially began connecting UAE shoppers

FEATURE

THE EMERGING E-COMMERCE ARKET

to outlets in the United States a couple of years ago and later expanded its coverage to the UK and, most recently, adding Kuwait as a destination market. “Emirates Delivers has been one of our pillars. It’s a shopping ship, product that we started,” Sultan explained. “We’re growing this organically but we’re doing it right. We’re making sure that we tick all the boxes. This isn’t about just expanding overnight and being able to cover a huge geographical area and then falling flat on our face.” The company is taking a measured and careful approach to ensure that the service is of the highest quality. Instead of rapid, expansive growth, Emirates SkyCargo is focused on providing top tier services that meet, or exceed, customers’ expectations. Ultimately, the airline aims to offer same day delivery options, with first and last mile operations streamlined so that the majority of transport time is in the air. “For us, I think what matters is the fact that you put in a product that has to be absolutely superior in all aspects. That’s a key focus,” he continued.

e-commerce expansion Emirates SkyCargo is optimistic about its Emirates Delivers offering and wider e-commerce operations. “I think there’s a lot coming. I think there’s a lot of innovation and work that is happening with the whole ‘shop and ship’ express product,” Sultan said. “We’re going to have something quite significant and reliable.”

The airline is committed to continued innovation and expansion within the e-commerce sector, developing a reliable, time-sensitive delivery service that carries the Emirates brand, offering assurance and excellence. “We’ve ensured that we create the right incentives around our hub and made sure that we’re able to deal with all sizes of packages, getting them from A to B in the shortest span of time,” Sultan added. “We understand that business. We’re able to create tailor-made products and ensure that the agility of getting products to market swiftly is a top priority for us.”

“I think there’s a lot coming. I think there’s a lot of innovation and work that is happening with the whole ‘shop and ship’ express product” ACW 6 NOVEMBER 2023

VIEW FROM THE MAINDECK ESTABLISHING EUROPE’S E-COMMERCE HUB

WITH Frankfurt ideally situated in the heart of Europe, Lufthansa has ambitious plans to turn its home base into one of Europe’s key e-commerce hubs. In recent years, the industry has witnessed a rapid increase in online shopping, largely driven by the global expansion of e-commerce platforms and the remarkable rise of direct-toconsumer e-commerce companies. A key driver of this growth has been the digital transformation that has swept across the logistics chain, making the delivery of e-commerce products more efficient and reliable. In addition, the simplification of payment methods and other innovations have significantly improved the overall online shopping experience for consumers. Recognising the growing opportunities offered by this evolving market segment, Lufthansa established a subsidiary, heyworld, dedicated to providing specialised e- commerce logistics solutions alongside other partners. The airline has also been focused on making significant investments in state-of-the- art infrastructure, both hardware and software. “Our offerings are comprehensive, providing seamless solutions for shipping, customs clearance and last-mile transportation of e-commerce shipments,” Dr. Anselm Eggert, Vice President of Business Development at Lufthansa Cargo, said. “In addition, to keep up with the fast-paced needs of the industry, we have undertaken joint testing projects with several partners and leading e-commerce companies to ensure that fast delivery standards are met.“

Key routes and customs clearance Primarily moving goods from China to Europe and from the United States of America to Europe, Lufthansa also serves a number of intra-European routes via its A321F aircraft.

“A robust and interconnected multimodal network is essential to ensure fast, often same-day delivery of e-commerce goods,” Eggert said. “Thanks to Frankfurt’s central location in Europe and its one-of-a-kind transportation network, we benefit from an advantageous multimodal system.” The ground handling and customs clearance processes for e-commerce products are significantly more complex than for general cargo. At the same time, there is an increased demand for efficiency in handling these products, as well as a heightened expectation for end-to-end visibility throughout the logistics chain. “Partnerships are fundamental to realising our vision,” Eggert highlighted. “Our collaborations extend beyond e-commerce companies. We are actively engaged with various logistics providers, technology partners, and also German Customs. It’s important to us that all parties involved in the process work together in perfect synergy.”

e-commerce efficiency The sheer volume and increased efficiency demands of the e-commerce sector underscore the need for digital innovation. Lufthansa Cargo’s proactive approach to this challenge includes the full implementation of eAWB applications, streamlining its booking processes and advancing the digitisation of data flow for parcel-by-parcel customs clearance. In addition, its participation in IATA’s One Record project exemplifies its commitment to leveraging digital solutions for optimal efficiency. “Lufthansa Cargo’s e-commerce volume is more-or-less in line with the current market development. IATA estimates that approximately 20% of worldwide cargo volume is driven by e-commerce,” Eggert said. “Our goal is to ensure that we remain attuned to the accelerating development of this segment in the global market.”

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