KIEV—Ukraine’s pride, Antonov AN-225 Mriya, the world’s largest plane and the only one of its kind, was destroyed by Russian strikes while it was parked for repair at the hangar of Antonov Airport in Gostomel near the capital Kiev, officials said.
The plane was damaged on 24 February 2022, the first day of the Russian invasion on Ukraine. Ukrainians initially blocked the invading Russian troops but the Russian Airborne Forces later managed to take over the airport which is strategically used for international cargo, MRO and testing flights.
On Russian President Vladimir Putin’s orders, Russian soldiers began the invasion and strategically targeted attacking Ukraine’s vital military and civilian infrastructure like the Gostomel airport to quickly weaken Ukraine’s defense. But Ukrainians, mostly civilians, took a united stand to defend their freedom and democracy despite their limited military training and supplies.
The battle continues despite global efforts to impose heavy economic sanctions against Russia and the EU’s decision to help Ukraine with military artillery, equipment, missiles, among other things. Millions of innocent civilians in the country had since been displaced while hundreds of thousands flee to nearby European countries.
Ukraine’s state-owned defense conglomerate, UkrOboronProm, said in a statement, “Russian invaders destroyed the flagship of the Ukrainian aviation.”
“On the morning of February 24, the biggest cargo airplane was undergoing repair and routine maintenance at the ANTONOV Company site in Gostomel. According to the director of Antonov Airlines, one of the engines was dismantled for repairs and the plane wasn’t able to take off that day, although the appropriate commands were given.
“Currently, it is impossible to assess the plane’s condition and the possibility and cost of its restoring due the lack of access to the aircraft as the control over the airport is taken by the Russian occupiers,” UkrOboronProm said in a statement.
Estimates showed it would take five years to rebuild AN-225 and could cost over $3 billion. “Our mission is to ensure that these expenses are covered by Russia, which deliberately inflicted damage on Ukraine’s aviation,” UkrOboronProm said.
Named Mriya, which means “dream” in Ukrainian, AN-225 is 84 meters long and capable of transporting up to 640 tons. It was initially built as part of the Soviet Union’s aeronautical program and made its first flight in 1988.
The plane, dubbed as the workhorse of the air cargo industry, because it’s the only one capable of carrying cargo of extraordinary load, size and shape, has been an invaluable partner of many industries through the years, particularly in carrying humanitarian cargo in different disaster-stricken areas and conflict zones.
When the COVID-19 pandemic struck, Antonov AN-225 was heavily used to transport medical supplies and other general and special cargo.
“When it comes to project cargo transportations, which are usually taking place somewhere in less equipped areas and airports, there are no better freighters in the world than An-124 and Il-76 as they are 100% self-reliant in loading and offloading thanks to internal system of cranes and ramp. That said, we do not need special airport equipment, as opposed to Airbus and Boeing planes, to proceed with effective loading/offloading of XL shipments and our experienced and qualified loadmasters are always here to come up with the right technical solution to streamline handling operations.” — Fedor Novikov, Marketing Director at Volga Dnepr Group
Volga Dnepr Group has been known to be the world leader in carrying unique, oversize and heavy cargo, successfully creating a niche market for the Russian airfreight industry since 1990, a year before the former Soviet Union disintegrated and collapsed.
According to the Moscow Defense Brief, over the past 18 years, the Group has transported gigantic excavators and yachts, missile launchers, airplanes and helicopters, elephants and whales, entire mini-factories, power plants, among other unique cargoes.
The main subsidiary of the Group, Volga-Dnepr Airlines, operates a fleet of 12 Antonov AN-124 and five Ilyushin IL-76 for international charter services of oversized and heavy cargo. AirBridgeCargo (ABC), another subsidiary, specializes on scheduled cargo operations while ATRAN Airlines focuses on short-and medium-haul flights. Together, these cargo carriers are known as the “Wings of Russia.”
In 2008, Volga-Dnepr delivered Kibo, the Japanese Experiment Module for the International Space Station (ISS), from Japan to the Kennedy Space Center in Florida. It is the largest single ISS module.
The airline recently completed a series of charter flights for over 12 million COVID-19 kits, in collaboration with UK-based freight forwarder JAG-UFS, the test kits were carried from Shanghai to China to Billund in Denmark with an average load of 72 tons per flight. The flights were carried out on behalf of the Danish government.
Amid the pandemic, the airline experienced disruption of scheduled operations and a significant influx of charter operations.
With 30+ years of experience and expertise in this area they were able to adjust to the current situation and guarantee intact supply chains to their customers worldwide. The pandemic has also served as a trigger to introduce more diversified product portfolio for their customers—scheduled cargo operations, charter cargo operations, long-term charter programs and ACMI.
As the market opted for longer-term commitments such product range was highly appreciated. Throughout 2021 the airline analyzed the market situation, and it became clear that customers are also interested in integrated logistics solutions through ‘one-stop-shop’ experience.
Fedor Novikov, Marketing Director at Volga-Dnepr Group, explains to Air Cargo Update the company’s unique role in transporting oversize and superheavy cargo, dominating the global market for this niche mission for years now.
Volga-Dnepr has historically been active in the heavy and oversize air cargo market transporting unique project cargoes worldwide. However, amid the pandemic they have significantly strengthened their positions in such segments as healthcare and humanitarian prioritizing COVID-19 shipments over other projects cargo to help people live healthier and safer lives.
“When it comes to project cargo transportations, which are usually taking place somewhere in less equipped areas and airports there are no better freighters in the world than An-124 and Il-76 as they are 100% self-reliant in loading and offloading thanks to internal system of cranes and ramp. That said, we do not need special airport equipment, as opposed to Airbus and Boeing planes, to proceed with effective loading/offloading of XL shipments and our experienced and qualified loadmasters are always here to come up with the right technical solution to streamline handling operations,” Novikov explained.
Last year, amid the pandemic, Volga-Dnepr expanded its services to include a more integrated logistics solutions for its growing number of customers.
“In 2021, we have realized that our unique expertise and experience could expand beyond air freight and started offering more integrated logistics solutions, embracing first- and last-mile, warehousing, customs clearance, trucking delivery. These are the first steps but we have seen strong support from our customers and will follow this trajectory to offer value-added services,” said Novikov.
“However, Boeing 747 with its nose-door loading capabilities and wide side cargo door is also an ideal choice when we talk about transportations to more developed airports with sufficient infrastructure. This is especially the case for super long pieces, likes of pipes, or jet engines to mitigate AOG situations, or equipment for chip production,” he added.
Among its recent achievements, Volga-Dnepr has transported COVID-19 and ancillary out-of-gauge equipment, among them production line for vaccines.
Throughout 2021, the Group has also operated a number of charter flights with firefighting equipment to help nations in their battle against wildfires, transportation with satellite equipment to provide high-speed internet coverage, supported our customers in their COVID-19 transportations (tests, masks, vaccines, ancillary goods, etc.).
Volga-Dnepr Group consists of three independent airlines – Volga-Dnepr Airlines, AirBridgeCargo Airlines, and ATRAN airlines, with supporting businesses in leasing, insurance, MRO, trucking, and training areas.
The Group provides efficient integrated logistics solutions to the market by using its unique fleet of the ramp and non-ramp aircraft and operating charters onboard An-124, Il-76 for oversized and super-heavy cargoes, onboard Boeing 747F, Boeing 777F and Boeing 737F for general and special cargoes, including temperature-sensitive, dangerous goods, oversize and heavy, live animals, e-commerce; scheduled flights for all types of cargo in accordance with the existing network onboard B747F, Boeing 777F and B737F; and providing customized logistics solutions for oversize and heavy cargo, embracing all stages of the transportation process – consulting, design & manufacture of special loading frames, packaging advice, and support, organization of multi-modal services, obtaining of airport permits and approvals, ground handling arrangements.
The Group is constantly evolving its services to meet the growing demand for dedicated deliveries of healthcare, high-tech, aerospace, e-commerce, automotive, and other industries with a special focus on customized solutions.
“In 2021 we have decided to expand the scope of our services embracing integrated logistics solutions – first and last mile, terminal handling, warehousing, transportation, customs clearance, design solutions, etc. With more than 30+ years of operations, expertise, and competence, we feel positive that our value-added services will be in demand among our existing and potential customers,” said Novikov.
Cargo Supermarket is Volga-Dnepr’s unique concept which offer one-stop-shop experience to their customers worldwide. Basically, it means that the customer could address with his/her cargo request and be sure to receive the most cost-effective logistics solution which might cover scheduled or charter operations onboard diversified freighter fleet (An-124-100/150, Il-76TD-90VD, Boeing 747-400ERF/8F, Boeing 777F, and Boeing 737F).
“On top of that, we complement our air freight services with Engineering and Logistics consulting which covers multi-modal delivery, customs clearance, warehouse management, design and manufacture of special loading equipment and other key logistics components,” said Novikov.
“This is a very competitive advantage given that in today’s fast-paced world, customers value time and having the ability to save it and avoid multi communication through e-mails, online booking forms, telephone calls, etc., is something our customers appreciate.
“Apart from Cargo Supermarket concept and a package of integrated logistics solutions we guarantee that we speak one language with our customers which means having local specialists with global vision and understanding. We have been expanding our regional teams, strengthening their knowledge as per industry requirements and current certifications.”
According to Novikov, the air cargo industry has been the bright spot and enabled uninterrupted supply chains amid logistics chaos of 2021.
“We are optimistic about 2022, although it is still early to talk about full recovery, which is expected to be reached only by 2024, in 2022 there will be 60%-recovery of passenger operations as they were back in 2019. IATA is predicting a rather modest growth of 4% growth of cargo volumes.
“However, we do not expect this year to be easier than previous two as we are still facing logistics challenges, but we feel better prepared today and have been able to adjust to the current situations. We look forward to expanding our scope of services embracing new areas, investing in new equipment and infrastructure, attracting new talents to ramp up our ambitious growth.”
He noted that the world currently relies heavily on air cargo operations which will be boosted by the following:
For now, the “Wings of Russia” is busy hauling different types of cargo across all continents, ensuring that both its chartered and scheduled flights arrive safely and on time, as the world races against time to recover from the onslaught of the pandemic. Edited By Gemma Q. Casas
Volga-Dnepr Group is also known best known for its remarkable performance in transporting equipment in the oil and gas industry, both in Russia and globally.
Using its fleet of An-124-100 and IL-76, technical expertise and highly-skilled staff, customers are assured of timely delivery of their equipment, thus, contributing to seamless production of oil and gas.
Volga-Dnepr has already served all major oil and gas companies worldwide such as British Petroleum, Exxon Mobile, Shevron-Texaco, Calgary Overseas, Canadian Oxy Offshore International, LUKOIL.
A bright example of new technologies implementation for special cargo services is the cooperation between Volga-Dnepr and British Petroleum. In 1996, transportation of oil equipment to Columbia by the Russian airline’s aircraft resulted in the commencement of oil exploration there before the scheduled time.
Within a year and a half, 120 flights were performed for British Petroleum including high-mountain and hardly accessible regions with over 11 thousand tons of the total equipment dispatched. Such logistic solutions are new to the world aviation and industrial exploration. Experts said Volga-Dnepr logistic services allowed its customers to obtain material benefits.
Among the Group operations performed in 2007-2008 are the following: the delivery of an asphalt plant from the United States to Russia; transportation of a huge rotor (67 tons) from Italy to China; delivery of a power station (90 tons) from the United States to Kuwait. In 2008 the dispatch of a printing device from Germany to Japan was a new world record of a single cargo piece transportation (40 tons) on the IL-76TD aircraft.
Through the Group’s endeavors, An-124-100 Ruslan and IL-76 aircraft became part of the international logistics incorporating production units located across the world.
GENEVA, Switzerland—The global air cargo demand went up by 18.7 percent in 2021 compared to 2020 year-on-year, making it the industry’s second-best performance (behind 2010’s 20.6% gain) since the International Air Transport Association began monitoring cargo output in 1990.
IATA said the growth outpaced the 9.8% rise in global goods trade by 8.9 percentage points. Economic conditions continue to support air cargo growth noting that the recent surge in COVID-19 cases in many advanced economies has created strong demand for PPE shipments, which are usually carried by air, it added.
Challenges, however, still confront the industry, particularly in the supply chain, due to labor shortages, partly due to employees being in quarantine, insufficient storage space at some airports and processing backlogs continue to put pressure on supply chains.
“Air cargo had a stellar year in 2021. For many airlines, it provided a vital source of revenue as passenger demand remained in the doldrums due to COVID-19 travel restrictions. Growth opportunities however were lost due to the pressures of labor shortages and constraints across the logistics system. Overall, economic conditions do point towards a strong 2022,” said Willie Walsh, IATA’s Director General.
“December saw a relief in supply chain issues that enabled an acceleration of cargo growth. “Some relief on supply chain constraints occurred naturally in December as volumes decreased after peak shipping activity ended in advance of the Christmas holiday. This freed capacity to accommodate front-loading of some Lunar New Year shipments to avoid potential disruptions to flight schedules during the Winter Olympic games.
“And overall December cargo performance was assisted by additional belly-hold capacity as airlines accommodated an expected year-end boost to travel. As shortages of labor and storage capacity remain, governments must keep a sharp focus on supply chain constraints to protect the economic recovery,” Walsh noted.
2021 Regional Performance
Strong variations were evident in the regional performance of air cargo in 2021 compared to 2019. North American carriers were the strongest performers, reporting an annual increase in international demand of 20.2%. Middle East and African carriers also reported double digit growth in international demand in 2021 (10.6% and 11.3%, respectively) compared to 2019. Asia-Pacific and European carriers saw international demand rise 3.6% in 2021 compared to 2019. And Latin American carriers were the only ones to record a contraction in international demand of 15.2% compared to 2019.
Asia-Pacific airlines reported a rise in international demand of 3.6% in 2021 compared to 2019 and a fall in international capacity of 17.1%. In December airlines in the region posted an 8.8% increase in international demand compared to 2019. Demand for goods manufactured in the region remains strong, including PPE. International capacity remained constrained in December down 10% compared to the same month in 2019.
North American carriers posted a 20.2% increase in international demand in 2021 compared to 2019 and a growth in international capacity of 0.2%. The region was the only one to record a growth in capacity in 2021 compared to 2019. In December carriers in the region posted an increase of 20.5% in international demand. The region’s carriers continue to benefit from strong consumer demand for goods. International capacity grew 6.2% compared to December 2019.
European carriers reported a 3.6% increase in international demand in 2021 compared to 2019 and a fall in capacity of 17.4%. In December airlines posted an increase in international demand of 6% compared to 2019. International capacity was down 5.9% in December 2021 compared to pre-crisis. European carriers have been significantly affected by supply chain and airport congestion and localized capacity constraints.
Middle Eastern carriers reported an increase in international demand of 10.6% in 2021 compared to 2019 and a fall in international capacity of 10.1%. Growth decelerated towards the year-end, partly driven by a downward trend in volumes on the large Middle East-Asia route. In December airlines in the region recorded a 5.7% increase in international demand compared to December 2019. International capacity decreased by 9.2% in December compared to the same month in 2019.
Latin American carriers reported a decline in international demand of 15.2% in 2021 compared to 2019 and a fall in capacity of 30.2%. Airlines registered in Latin America had a challenging year, as several were engaged in lengthy restructuring processes. That said, the restructuring processes are coming to an end, and December’s performance was the best of the year, with carriers in the region reporting a 2.9% decline in international demand compared to December 2019. This was a significant improvement on the 13.4% decline the previous month. Capacity remained heavily constrained in December, down 26.1% on pre-crisis levels.
African airlines saw international demand grow 11.3% in 2021 compared to 2019 and a fall in international capacity of 14.6%. Growth in the region has been dynamic for most of the year, driven by the strength of the Africa-Asia route. In December, international demand grew by 7.6% with international capacity falling 19.4% as compared to the same month in 2019.
Air Cargo Update talks to Nathanaël De Tarade, Chief Commercial Officer of the Paris-based software and data science company Wiremind, about how digitalization is reshaping the industry and how their company is making sense of technology and data to benefit the global transport industry and the people that depend on it.
We’re three years into the pandemic and without the help of science and technology combined, it will be extremely difficult to navigate the
complex impact of the global health and economic crisis that the world is now facing.
This is a delicate time in humanity’s history where resources are scarce. The era of smart technologies, space exploration, artificial intelligence (AI), drones, robots, data science, algorithms and so many other tech and industrial revolution never before seen in our lifetime.
The air cargo industry, among the frontline industries that the world is currently heavily dependent on in terms of movement of goods, medical supplies and vaccines, is no exception to the massive digital transformation we’re currently seeing and experiencing.
Though struggling to embrace digitalization globally due to various reasons, the industry continues to make progress in different aspects of technology.
Air Cargo Update talks to Nathanaël De Tarade, Chief Commercial Officer of the Parisbased software and data science company Wiremind, about how digitalization is reshaping the industry and how their company is making sense of technology and data to
benefit the global transport industry and the people that depend on it.
De Tarade, an industry veteran for 11 years, half of which spent at AirFrance-KLM and the other half at Wiremind, says the airfreight industry is yet to fully utilize the scientific data and other technologies available to operate more efficiently and profitable.
Harnessing the power of technology
With just three staff when it started, Wiremind is now powered by 50 people and its roster of clients are some of the biggest in the cargo and passenger transport industries—Emirates, Atlas Air, United Airlines, Qantas, ECS Group, Chapman Freeborn, etc., and SNCF (Société nationale des chemins de fer français), one of the world’s first and biggest rail operators.
SNCF chose Wiremind’s CAYZN Revenue Management Solution to optimize its TGV INOUI high-speed services as well as for its Intercity and night-trains. This is so far Wiremind’s biggest accomplishment with 120 million commuters from France alone using the system.
“This is most likely one of our biggest achievements to date, and certainly one we have worked the hardest for. High-speed TGV rail travel in France alone is more than 120 million passengers per year, so it is comparable to some of the largest airlines in the world. We are very proud that SNCF has selected Wiremind as their solution provider to handle such a critical and strategic area. We believe it shows our level of expertise in Software, Revenue Management and Data Science,” De Tarade proudly said.
This year, the company is focusing more on the air cargo industry as it takes the lead role in safely transporting billions of COVID-19 vaccine doses across the world to contain the spread of the constantly mutating Coronavirus.
“2022 is really the year where our product offering will step up significantly. We already address the needs of end-to-end capacity optimization, from quotation to booking to flight build-up, thanks to our SkyPallet solution – we are now also offering to our customers dedicated Data Science & Ai-based solutions for Pricing, Overbooking, among others. We will be announcing more in the coming months,”
said De Tarade.
Worldwide, more than 307 million people have been infected by various COVID strains and more than 5.5 million have died as of January 2022. With the unequal distribution of vaccine still a major issue and governments lacking resources to buy medical supplies and sustain their healthcare systems, experts say the pandemic could linger on far longer than what they had hoped for.
Meaningful global impact
The pandemic has once again highlighted the importance of the global and domestic transport industry to move people and goods of all kinds via air, land or sea.
The industry is instrumental in taking essential workers to their jobs, keeping economies a float and distributing vaccines across continents despite unprecedented logistical and other operational challenges. In terms of global trade, air cargo accounts
for one-third of it estimated at over $6 trillion annually.
The transport sector’s impact to global trade and people across the world are the very reasons why De Tarade and the other founders of Wiremind chose to focus on it.
“The first reason simply lies in the background of the founders. We all come from the transport industry. There are many reasons why it’s one of the best industries to work in: it is an international business, where you meet people from different cultures, it is also a business that is essential in the lives of people – as you say, there are very few people on this planet that do not move themselves, or do not benefit from goods that have been moved,” the Wiremind CCO shared.
Mobility will continue to impact how people live and do business. This is something that Wiremind is cognizant of, thus, it continues to seek innovative ideas and solutions that will create meaningful benefits for companies in the transport sector as well as people that rely on it.
“I am proud to work on technology that has a true and meaningful impact on global trade. Sometimes, I feel that technology is used to
offer a solution to something that was not a problem: ordering a pack of cookies from the supermarket that is located 5 minutes away from my apartment, and getting them delivered in 10 minutes without moving from my couch, is not my idea of the best possible use of technology.
“Delivering Covid-19 vaccines to the world seems much more relevant. So, I’m confident that moving goods and people, using each mode of transportation as long as we are environmentally aware of our impact and work on mitigating it, is something that has a future. Fully using the capacity at our disposal is also meaningful in that aspect, to avoid flying or shipping empty space,” said De Tarade.
Wiremind and air cargo
The pandemic challenges seen in the transport industry and its supply-chain are unique and given the constant changes that may arise from it, De Tarade says Wiremind is open to more innovative ideas in the future.
“We have to separate the challenges that were already there, that the pandemic made even more important, such as digitalization, and the challenges that directly stem from the pandemic itself, such as the high volatility of the passenger capacity, with direct
impact on the cargo capacity in the market,” he said.
“For the challenges that we already knew, the pandemic has acted as a magnifying glass. So, we have to stay agile enough to address needs that are suddenly urgent, not just important. That’s what we do by launching new products and services,” he added. “For the rest, the most important thing for us to do is stay close to our customers: When the capacity changes, it brings new challenges and we have to provide value to meet them.”
To harness the potential of technology on air cargo, De Tarade believes the industry should focus more on data so it can make the necessary adjustments on its operations and create more possibilities.
“I think the industry should focus on data. It always sounds very general: what data do we have or don’t have, where it is stored, how it is stored, what do we use it for, who do we share it with, etc. Looking at each of these questions takes time and requires cooperation with many stakeholders. Yet it is crucial, because it is the condition for the success of high-value projects that include Data Science models that have direct impact on revenues and costs,” he explained.
“I do feel that things are moving in the right direction though, the right level of priority is starting to be given to those topics.” As the industry re-invents itself in the face of herculean tasks during this pandemic, De Tarade it can tap technology to make things easier for its many components.
“One thing that is exciting in air cargo is the very large number of areas, departments and cases where technology can really bring value. Looking at concrete examples: customer service, where you had to send emails and follow up on the phone to simply ask for capacity information. This process can be much simpler, thanks to having integrated solutions, platforms, etc. that interact with each other,” said De Tarade. “Another example would be the flight management process. If I take the example of what Wiremind Cargo offers, we have a show-up rate algorithm that provides immediate advice as to how much no-show (and low-show) will likely happen on a flight, which is a direct way to increase efficiency and revenues,” he added.
Taking charge of threats
With the digital age comes a new global nemesis, the cyber criminals who have become more sophisticated in launching attacks against individuals and companies throughout the world, often undetected until a ransom is demanded.
As the world shifted to more remote working or hybrid work due to the pandemic, cyber attacks have risen higher with damages of $1 trillion in 2020. This year, experts believe global cybercrime damages could have reached $6 trillion, according to Cybersecurity Ventures, the world’s biggest research cybersecurity firm.
Over the next five years, cybersecurity attacks could even top $10.5 trillion in value as cyber criminals become more aggressive and sophisticated against the backdrop of a more digital world.
De Tarade said Wiremind takes cyberattacks very seriously and while there are no guarantees it won’t happen; the company has taken extraordinary steps to protect their clients.
“Cyber-attacks are an extremely serious matter. Of course, we follow the highest standards of our industry. We have a dedicated infrastructure team that has the direct responsibility of cyber security across all perimeters of the company. They are highly qualified engineers that constantly review the solutions we have in place to ensure the highest possible security level,” he said.
“These solutions involve multiple actions: several daily backups at multiple locations, 2 (sometimes 3) factor authentication, etc. But we are very much aware that most cyber-attacks are made possible not so much because of a default in the technology, but rather because of human mistakes. So, we have regular training sessions that target all staff, not just software engineers,” he added.
Threats should be anticipated and dealt with possible solutions. And unexpected situations like this pandemic have invaluable lessons that people and businesses learn from.
“Business-wise, what comes to mind first is the fact that a company should “expect the unexpected”. Sounds like a paradox, but I mean it as a state of mind: when you are considering scenarios when making decisions, do not picture the coming years as a clear horizon just because you have clear goals. Instead, picture a moving context, with multiple possibilities (both threats and opportunities),” De Tarade shared when asked about the lessons he learned from this pandemic.
“Another thing I can think of is the fact that a time like this is really the best time to look at your processes: which you must
keep, and which you can do without, at least for a while. Interestingly, I think that both of these lessons also apply at a personal level: I feel that many of us have been increasing our focus on what really matters.”
ISTANBUL—Some 63 horses safely traveled from Chicago, USA to Istanbul aboard Turkish Cargo as if they were in their natural surroundings thanks to the carrier’s expertise and experts in handling live animals.
Providing the conditions in the sky that are as similar to the conditions in their natural living environments by exercising maximum care for the live animal shipments, Turkish Cargo says it takes pride in making another successful equine transport operation with the unique services it offers.
59 of the horses traveled all together at the same time while others took a different flight. To ensure the horses travel comfortably Turkish Cargo used specially designed 21 stalls (dedicated horse barns) with non-skid surface and oval edges.
Since they are not allowed to be transported unattended as per international regulations, the horses were accompanied by their keepers and the IATA Live Animals Regulation (LAR) certificated Turkish Cargo personnel during the flight.
Having been lodged for a short time in the live animal rooms at the Ataturk Airport in conformity with their natural living conditions, the horses were delivered healthy and hale to their owners in Turkey through the dedicated loading doors enabling ready movement.
Turkish Cargo offers live animal shipment service to customers in 127 countries worldwide. The company takes the IATA LAR (International Air Transport Association, Live Animals Regulations) as reference for its acceptance, storage and shipment processes, and continues to implement the documentation, packaging, labeling and marking rules, as specified in the said regulations, strictly during the course of shipment of live animals.
Detailed information about TK LIVE, the product which has been developed specifically for live animal shipments by Turkish Cargo, can be found through the “products and services – special cargo” tab on its website— www.turkishcargo.com.tr .
FedEx Express is expanding further its global presence through the UAE and KSA taking advantage of their ideal geographic location connecting continents easily. The world’s largest express transportation company moved nearly 110 kilotons of PPE and other healthcare supplies, including more than 2.5 billion masks, between January 2020 and September 2021.
FedEx is a global name synonymous to speed delivery across the world. With a fleet of more than 680 planes, 350 of which are jet aircraft dedicated to cargo, FedEx is the world’s largest all-cargo airline.
In the face of the pandemic, the company and the 560,000 people behind its operations worldwide committed themselves to ensuring that lifesaving medical and healthcare supplies, as well as other basic essentials, are safely transported even to the farthest shores on the planet to help fight humanity’s biggest health crisis.
Jack Muhs, Regional President of FedEx Express Middle East, Indian Subcontinent and Africa, told Air Cargo Update that FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX) and the world’s largest express transportation company, moved nearly 110 kilotons of PPE and other healthcare supplies, including more than 2.5 billion masks, between January 2020 and September 2021.
When the pandemic struck in 2020, FedEx immediately mobilized Project Airbridge, a public-private partnership managed by the US federal government to ensure the expedited shipping of personal protective equipment and other supplies critical to COVID-19 relief efforts across America to protect people against the virus. Across the 50 states in America, FedEx employs more than 375,000, representing a 9.4 percent increase in employment in 2020 while many sectors cut jobs.
And in the Middle East, FedEx is also busy keeping essential medical supplies and other goods moving from one point to another, regionally and internationally.
When India was struggling to fight its worst bout with the COVID-19 pandemic early this year, FedEx supported the transportation of more than 25,000 oxygen concentrators and converters through an initiative with the US-India Strategic Partnership Forum and other multinational companies, apart from hundreds of tons of medical supplies and aid.
The airline even donated a FedEx Boeing 777F charter flight to move more than 3,400 oxygen concentrators, converters and nearly 265,000 KN95 masks for Direct Relief from Newark, New Jersey to Mumbai, India.
In great appreciation of FedEx’s essential employees’ resolve to work despite the threat of the pandemic, Muhs shared the company gave them a bonus in January 2021.
“Every one of our workers that helped deliver packages, when everything’s on lockdown, still go to work. So, in appreciation of their efforts each one of them got a bonus. As they say, not all heroes wear a cape,” said Muhs on the sidelines of Dubai Airshow 2021.
Positive Market Outlook
FedEx Express has its hub in the Middle East in Dubai, established since 1989. Last month, the company signed an agreement with Dubai South to build its new regional hub for the Middle East, Indian Subcontinent and Africa (MEISA) region at the Logistics District to meet a growing surge on air cargo services demand.
Located in proximity to Dubai World Central Airport (DWC), the new FedEx Express regional hub at Dubai South will incorporate state-of-the-art technologies to support the company’s regional and global networks and increase operational efficiencies to meet growing trade demands within the MEISA region.
“Dubai is like the air silk of the world that connects Asia and Europe and Europe to Asia. We have flights from Europe. We have flights out of North America. We have nonstop flights from Memphis, Tennessee. We have flights from Asia. And now we have flights from Africa. And so, the need for a larger hub to support that growing network is obviously very important for us,” said Muhs noting that Dubai is a strategic location in converging FedEx flights from all over the world. “Dubai continues to be the heart of our regional operations.”
From Dubai, FedEx Express also serves India, a huge emerging global market for air cargo and logistics, as well as Africa, a continent where many countries have the world’s youngest population.
FedEx Express’ new regional hub in Dubai will be developed with sustainable operations and energy use in mind and will enhance the overall customer experience with an automated and advanced sorting system, hi-speed security screening equipment, cold-chain services, and capabilities to manage dangerous goods. It will also provide businesses and customers quick access to more countries around the world.
Expansion to KSA
FedEx Express is also expanding its presence in the Kingdom of Saudi Arabia to meet the country’s growing international shopping demands and its goal to diversify its oil-based economy.
Muhs said FedEx Express will invest more than SAR 1.5 billion (US $400 million) into the Saudi economy over the next 10 years through talent management and local operations and infrastructure. This investment will reaffirm the company’s commitment to the country’s non-oil economic growth, in line with Saudi Arabia’s Vision 2030 goals, and the ‘National Industrial Development and Logistics Program’ which seeks to increase non-oil exports to more than SAR 1 trillion (approximately US $266 billion).
FedEx Express has been facilitating trade in Saudi Arabia since 1994, offering international solutions and connectivity through local service providers, most recently through SAB Express. Its recent announcement and the company’s direct presence in the country are seen to further help local businesses trade with ease and expand their reach into the more than 220 countries and territories that FedEx serves.
“In addition to our commitment to the Saudi economy, we see FedEx Express playing an important role in developing the small and medium enterprise environment in Saudi Arabia, which forms the backbone of the economy, and represents 99% of Saudi Arabia’s private sector,” said Muhs.
Great tasks ahead
While continuing to deliver vital lifesaving medical and healthcare supplies, the air cargo industry is also in high demand distributing COVID-19 vaccines and facilitating global trade as businesses and economies work doubly hard to recover from the devastating impact of the pandemic.
And in today’s digital world where online purchases are becoming the new normal, air cargo’s fast and efficient delivery services have become a critical component of the global e-commerce industry.
“Let’s put the vaccines in perspective first. There’s no doubt that the movement of the vaccine ingredients, PPE and all those things, are some of the most important things that we have transported. I do not want to minimize that. We do a lot. We have 350 dedicated jet aircraft that do nothing but cargo and another 330 turboprop-engine aircraft that feeder into smaller cities. Those are obviously huge opportunities for us to continue to grow. We handle about 15.5 million packages per day, globally,” said Muhs.
The FedEx Express top executive said the pandemic essentially made us realize that air cargo is an essential partner in today’s more globalized world.
“I think what you saw during the pandemic is the importance of air cargo to keep economies going. Yes, we move a lot of vaccines, PPE (personal protective equipment), we were very excited about helping (the world) recover. We also do a lot of e-commerce. We also moved a lot of goods to help communities keep up. People started shopping from home. Businesses needed parts move. There are so many things going on,” said Muhs.
“Roughly 40-50 % of freight, pre-covid, moved in the bellies of passenger flights. And when those capacity were pulled down, it’s companies like FedEx that kept those stuff moving. So, I’m very bullish on air cargo. I think what the pandemic showed is the incredible value of having a freight network in today’s economy to keep things moving,” he added.
Jack Muhs: From intern to Regional President of FedEx Express MEISA
James R. (Jack) Muhs is the regional president of the Middle East, Indian Subcontinent and Africa (MEISA) region for FedEx Express based in Dubai.
The affable but results-driven Muhs who leads more than 9,000 FedEx Express and TNT team members, and responsible for providing the strategic direction for the region, shared he began his career at the world’s largest all-cargo airline as an intern while getting his college degree from the University of North Dakota.
From being an intern, Muhs became an employee working full-time loading planes and driving vans. With FedEx’s strong hire from within policy, which means current employees are given the chance to be promoted to key management positions, Muhs climbed up the corporate ladder.
“I started as an intern,” Muhs recalled. “I worked full-time loading airplanes. Driving vans and that’s a really big advantage to me because I learned a lot from the ground up.”
Prior to his appointment in MEISA, Muhs served as President and CEO of FedEx Trade Networks, which specializes in air and ocean freight forwarding, customs brokerage and international trade facilitation solutions.
He also previously served as senior vice president of U.S. international, global planning, engineering, and trade services for FedEx Express, where he was responsible for the company’s U.S. export business, as well as the planning and engineering of the FedEx Express global network.
Since joining FedEx in 1984, Muhs has served as managing director of global operations control. Following that appointment, he became vice president of global network planning and operations control in 1998.
He is a four-time recipient of the FedEx Five Star Award, the company’s highest award for individual leadership and contribution.
Muhs holds a BBA from the University of North Dakota and an MBA from the University of Memphis. He currently serves as chairman of the North American Leaders Group of the U.S. Chamber of Commerce, and is on the Global Board of Directors of U.S.-India Business Council (USIBC) of the U.S. Chamber of Commerce.
Geneva, Switzerland — The International Air Transport Association (IATA) has called on governments to adopt simple, predictable and practical measures to safely and efficiently facilitate the ramping-up of international travel as borders re-open. Specifically, IATA urged governments to focus on three key areas:
The industry’s vision to address the complexity is outlined in the newly released policy paper: From Restart to Recovery: A Blueprint for Simplifying Travel.
“As governments are establishing processes to re-open borders, in line with what they agreed in the Ministerial Declaration of the ICAO High Level Conference of COVID-19, the Blueprint will help them with good practices and practical considerations. Over the next months we need to move from individual border openings to the restoration of a global air transport network that can reconnect communities and facilitate economic recovery,” said Conrad Clifford, IATA’s Deputy Director General.
The Blueprint aims to facilitate the efficient ramping-up of global connectivity. “We must have processes in place to safely and efficiently manage the ramping-up of international travel as borders re-open. With over 18 months of pandemic operational experience and traveler feedback we know that a laser-focus on simplicity, predictability and practicality is essential. That is not the reality today. Over 100,000 COVID-19 related measures have been implemented by governments worldwide. This complexity is a barrier to global mobility that is exacerbated by the inconsistencies these measures have created among states,” said Clifford.
Focus Areas
Simplified health protocols: The aim must be protocols that are simple, consistent, and predictable.
Key recommendations include:
These recommendations are supported by public opinion research of travelers which revealed that:
Digital solutions to process heath credentials: The management of travel health credentials (vaccination or testing certificates) should be handled digitally and enable travelers to complete the process in advance so that they can arrive at the airport ready-to-travel. This will facilitate automated check-in processes, reducing airport queuing and wait-times.
Key recommendations include:
These recommendations are supported by public opinion research of travelers which revealed that:
COVID-19 measures proportionate to risk levels with a continuous review process: Industry and governments have amassed crucial and vast experience with COVID-19. This will continue as COVID-19 becomes endemic. COVID-19 measures must reflect this growing knowledge, changing risk levels and societal tolerance. While day-to-day modifications to measures would introduce unpredictability that would be counter-productive, regular reviews and adjustments are needed.
Key recommendations include:
These recommendations are supported by public opinion research of travelers which revealed that:
Moving Forward
“Travel is important. Pre-pandemic some 88 million livelihoods were directly connected to aviation. And the inability to travel freely by air has impacted the quality of life for billions of people. We know that travelers feel confident with the implementation of the COVID-19 safety measures. But they have clearly told us that the current travel experience needs to improve with better information, simpler processing and digital solutions. The Ministerial Declaration of the ICAO HLCC aligns with those of the G20 and the G7 in confirming that governments want to restore the social and economic benefits of global mobility. For that, industry and government must work together with a common vision of processes that are convenient for travelers, effective for governments and practical for the industry,” said Clifford.
The only authorized distributor of CCN Solutions in GCC, which is an integrated platform service for streamlining the supply chain management of the cargo community, Airglow Aviation Group continues to soar despite the many challenges that come along with this pandemic.
Established in 2009 in the UAE as an ACMI based operator providing cargo charter services, Airglow Aviation Group has since grown to offer different aviation solutions and services, including airline representation, aircraft leasing, aviation training, travel & tourism, aircraft spare parts trading and even engineering services.
With combined industry experience of over 60 years, Airglow Aviation’s highly-skilled staff provide professional, reliable and cost-effective services to its growing list of customers 24/7, anywhere in the world.
Its extensive network curated over the years allows the company to provide agile professional services, responding to enquiries in a timely manner. The team of professionals at Airglow are equipped with the required training and skills to allow them to act diligently to offer exceptional service to clients and deliver qualitative value.
Add to that is the company’s comprehensive portfolio of services which help its airline partners reach measurable goals.
The company said it has successfully done so by understanding and analyzing the portfolio of products, services and network of its partners which leads to the deployment of market experts who capitalize on existing business opportunities and secure profitable agreements.
“The objective is to maximize the yield, utilize payloads and generate long-term revenue streams for the partners. These objectives are compounded with Airglow’s commitment to provide a comprehensive range of marketing activities, customer and operational services and accounting & finance support,” Airglow Aviation said.
“At Airglow, our expert team members analyze routes, payloads and timescale to propose suitable aircraft for the relevant requirements. This is coupled with innovative solutions that provide part-charters, backloads and commercially innovative solutions for ad hoc requirements, peak season and specific cargo projects,” it added.
Airglow Aviation also offers advice on pre-flight packing requirements, customs, warehousing and provides supervision of aircraft loading & unloading including arrangements for special equipment requiring custom built solutions.
It is also the only authorized distributors of CCN Solutions in GCC which is an integrated platform service for streamlining the supply chain management of the cargo community. With this software, the customers have an added advantage as they have access to cargo management, customs security compliance, documents management, business performance analytics and other value-added services. CCN’s partnership with IATA has permitted the Freight and Air Way Bill to be provided in electronic format which has made tracking and communication effective and easier.
Airglow Aviation Group Founder and Chairman ZaidanKhalifat and its Managing Director RohitThakwani briefly discussed with Air Cargo Update their business insights as the world turns into the air transport industry to fight the pandemic and achieve some semblance of normalcy despite the ongoing global health crisis.
How did the pandemic impact your business?
As the pandemic hit and its waves rippled across many industries, it crippled the aviation industry. Our partners were constantly operating on a daily basis and the dramatic drop in the number of passengers due to flight restrictions and health concerns came as a tremendous shock, as operations fell to a complete standstill.
This left a crater in our lives which had to be filled and hope came in the form of demand for medical equipment, consumables and medication. Transport was required but was naturally unavailable and that is where Airglow decided to step in and create a business path facilitating the journey for their partners.
In April, the team at Airglow started operating passenger freighters out of Afghanistan for Air Arabia and from UAE for Cham Wings as well as others from India, KSA & USA. This became a lifeline for the partners as they decided to fill the void with cargo to fulfill the increasing demand. This step was possible due to the agility demonstrated by Airglow and the resilience we showed in the face of challenges.
How hard was it to convince your partners to consider cargo as a business model for their operations?
It was quite a challenging task to convince partners to change their business model which relied on passenger traffic to cargo and it required a certain kind of dedicated resilience to convince them by communicating the benefits and addressing their concerns. There was an overwhelming notion amongst the partners that this pandemic would be short lived, therefore they preferred to be conservative in adapting to the change.
Air Arabia, however, was quite eager to adapt and they were one of the first partners to come onboard
with the new strategies and it was due to this e a g e r n e s s t h a t w e managed to bring 20 Tonne of cargo from Afghanistan to Sharjah on an A320 passenger aircraft.
What are your priorities at the moment?
Airglow Aviation started as a Charter Operator but evolved their offerings to provide Airline Representation (Cargo GSSA/GSA services). The pandemic has taught us agility and resilience but we prioritize our core business and values. Therefore, our priorities remain to be representatives for our partner airlines providing them solutions in the face of challenges. We want to highlight our success to increase the number of airlines we represent and provide them with the same kind of value adding service we currently offer our existing airline partners.
What are your long term goals?
Resilience is the key and a testament to that is our recent signing of a partnership with Uganda Airlines in Dubai and Air Peace in India. Therefore, it is vital for us to focus on our core strengths and provide comforting service to our partners. Customer satisfaction is often overlooked as GSAs sometimes focus more on the financial aspect of a business relationship, but we intend to continue to provide an elevated level of service to our partners which will allow us to retain them as partners and lead us to acquiring fruitful partnerships in the future.
With Australia’s borders re-opened to international travelers from November, Emirates welcomes this move by enhancing its operations to the country to meet pent up demand for travel into and out of Australia. With vaccination rates in New South Wales having reached their target, and Victoria being not far behind, the two states will allow vaccinated travelers to return to Australia without quarantine.
In response to the easing of travel restrictions, from November Emirates stepped up the frequency on flights EK414/415 between Dubai and Sydney to daily operated by a Boeing 777-300ER. Flights to Melbourne will operate as a four-weekly service as EK408/409, with the potential to increase in line with demand.
In another positive sign that the recovery is well underway for Australia, capacity on flights to Sydney and Melbourne returned to 100%, allowing 354 passengers across all cabins to travel on its flights. Australian citizens, permanent residents and their immediate family members are now able to enjoy unrestricted travel once again to and from the two points for the first time since the pandemic began, whether travelling abroad to global destinations for leisure or finally travelling home to visit family or friends, as long as they are vaccinated against COVID-19 with a TGA-approved vaccine.
From 1 December, Emirates’ flagship A380 aircraft, will also return to the Australian skies once again, serving the Dubai-Sydney route, on a daily basis. The much-loved aircraft will offer 516 seats in a three-class configuration, with 426 seats in Economy Class, in addition to its premium cabins, with 76 and 14 seats in Business Class and First Class, respectively.
Commenting on the airline’s ramp up of operations to Australia with the easing of travel restrictions, Barry Brown, Emirates Divisional Vice President for Australasia, said: “We are extremely delighted to once again be able to extend our services to Australians, with the capacity and frequency that they deserve. Passengers will appreciate the return to normality – for vaccinated travelers wishing to go home to Australia, this will mean no more restrictions on capacity and no quarantine on arrival into New South Wales or Victoria, ultimately allowing them to see their families sooner.
“We would like to thank our customers for their loyalty as we navigated the challenges together since the start of the pandemic. We are more than ever committed to Australia and it is especially exciting for us to add Sydney to the growing network of destinations served by our popular A380 aircraft. Our customers appreciate the spaciousness and amenities of the flagship A380 and starting in December they will be able to experience the exceptional product when flying to or from Sydney,” added Brown.
Customers of Emirates and Qantas have access to an expansive network of destinations thanks to the codeshare partnership between the two airlines. In addition to over 120 destinations that Emirates flies to, its customers have access to over 55 Australian destinations though the partnership, while Qantas customers are able to fly on Emirates to Dubai and access over 50 cities in Europe, the Middle East and North Africa.
Emirates continues to operate to Brisbane and Perth with government–mandated capacity restrictions in place, requiring all passengers to undergo a 14-day mandatory quarantine until travel restrictions are relaxed in Queensland and Western Australia.
The 2020 pandemic kept the airfreight industry extremely busy transporting life-saving medical supplies and other essentials. Their critical mission remains along with the additional role of distributing billions of COVID-19 vaccines to save people andto facilitate trade between businesses and economies to avert another global crisis.
Air cargo and its ecosystem are no doubt critical to pandemic response worldwide, supplying population needs, saving lives, and the success of the global economic recovery efforts.
“Since the beginning of the Covid-19 pandemic situation, air freighters have been of vital importance in keeping global supply chains functioning for the delivery of time-sensitive materials and medicines. Within this framework, Turkish Cargo has been adapting its operations in terms of dedicated cargo freighters along with the utilization of cargo capacity in passenger aircraft through its wide network around the world. Our company ensured a global air cargo bridge worth 130 thousand tons in 2020 and 101 thousand tons for the period of January-July 2021,” said TurhanÖzen, Chief Cargo Officer, Turkish Airlines.
Turkish Cargo, the cargo brand of Turkey’s national airline, was there to fill in the gaps to ensure the uninterrupted supply of urgent medical supplies like masks, PPE, oxygen, ventilators, medicines, among other things, across the world.
Worldwide, the cargo carrier’s teams worked round-the-clock, dedicating their precious time and energydespite the threat of the virus, to ensure the safe transportation of these essential goods for humanity’s sake.
By end 2020, Turkish Cargo’s revenue climbed up by 143.4% compared to 2019 and its global tonnage share rose from 5.3% to 7.2% during the same period. In the first 7 months of 2021, its revenue further increased by 10.5% and global tonnage share for this product group rose from 7.4% to 8% compared to the previous year.
And in no time, Turkish Cargo has successfully transitioned itself as one of the world’s three largest pharma carriers.
“During this period, there has been a huge demand on medical supplies and Turkish Cargo transported medicines, masks, medical equipment, Covid-19 vaccines and humanitarian aid all over the world with care and reliance. At this point, Turkish Cargo played a major role in maintaining critical air connections by prioritizing these shipments with its increasing responsibility in parallel with its rising market share. Turkish Cargo achieved a revenue increase of 143.4% in 2020 compared to 2019 in transportation of medical supplies, and raised global tonnage market share from 5.3% to 7.2% by the end of 2020. In the first 7 months of 2021, revenue increased by 10.5% and global tonnage share for this product group rose from 7.4% to 8% compared to the previous year,” Özenexplained.
Transition to SmartIst, Istanbul’s mega cargo hub
This year, Turkish Cargo is preparing for bigger things to come with its scheduled move to Istanbul Airport, currently the world’s biggest airport, where the airfreight carrier will have its mega cargo facility designed to handle as much as 4 million tons annually.
SmartIst is set to be fully operational this year and is aimed at further enhancing the brand’s activities in the years to come.
“Turkish Cargo’s SmartIST facility, which will provide a capacity opportunity of 2 million tons on annual basis at the first phase, will achieve a capacity of 4 million tons on annual basis at an area of 340,000 square meters upon the completion of the second phase,” said Özen.
How does it work? The Turkish Cargo CCO further explained, “Turkish Cargo’s SmartIST facility will be equipped with Industry 4.0, Logistics R&D, Innovative studies and technological infrastructure. Two different systems, will be used, namely PCHS (Pallet Control Handling System) and ASRS (Automatic Storage and Retrieval System), for automation of the processes.
“PCHS system will be used to store the ULDs, which are unloaded from the aircraft or ready to be loaded on board the aircraft, and to transfer the same to the intended location automatically. ASRS system will be used to store the smaller cargo packages, comprising the contents of the ULDs, and to transfer them to the intended location automatically, if and when so needed. These brand-new systems use their own artificial intelligence to optimize their movements, resulting in minimization of any intervention by employees and therefore enhancing quality of service.
“The new facility will address the needs of the market and maximize customer satisfaction by ensuring that all special cargo processes, from acceptance to delivery, in private areas (perishable, pharmaceuticals, valuable cargo, live animal transportation, express, e-commerce cargo) are carried out with the highest possible standards of quality.”
SmartIst will be powered up by integrated smart technologies such as Augmented Reality, Automatic Storage Systems, Robotic Process Automation and Unmanned Ground Vehicles, thus, ensuring seamless fast and seamless operations at the mega cargo hub.
Read on the rest of our interview with Özen, the aviation and cargo stalwart leading Turkish Cargo to achieve greater heights even in uncertain times.
You’re uniquely positioned with two hubs— Istanbul Airport and Ataturk. Can you please tell us what’s focused on each hub and how important are they in your mission and quest to position the brand as among the top 3 air cargo companies in the world?
Due to global transformations, the rapid development of e-commerce with technological developments and the fact that the word ‘speed’ has become even more important in trade, air cargo companies needed to serve with more capacity.
The increasing of air cargo capacities also affects airports directly. While air cargo companies are trying to expand their fleet and flight network, airports have turned to increase their storage capacity, technology, modernization and digital transformation processes.
As Turkish Cargo, we respond to the needs of the sector with our agile structure by closely following global changes and technological developments. Within this framework, we have built our SmartIST facility at Istanbul Airport, which is becoming a high-end logistics attraction center, in line with the carrier’s long-term targets.
In the upcoming period, Turkish Cargo will then be moving to SmartIST, where the entire operations will be carried out under one roof at Istanbul Airport.
When it comes to carrying pharmaceuticals, Turkish Cargo is a name to be reckoned with. Kindly share with us your accomplishments in this area, particularly in terms of handling COVID-19 vaccines.,
During the Covid-19 pandemic, Turkish Cargo, largely contributed to the sustainability of the global supply chain by transporting shipments of food, pharmaceuticals, medical equipment as well as shipments for urgent needs from/to Turkey and the four corners of the world.
With the start of the vaccine distribution, Turkish Cargo, successfully carried more than 300 million vaccine doses, which is approximately 1500 tons, from the vaccine production centers to destinations in its wide flight network, representing over 600 flights.
Our flag carrier brand transported the Covid-19 vaccines to key and certificated destinations such as Turkey, Baku, Rome, Belgrade, Copenhagen, Beirut, Miami, Sao Paulo and Mexico City, creating a global corridor between more than 400 destinations. With 30 years of experience when it comes to special cargo transportation, Turkish Cargo proved its capability with vaccines that have different transportation requirements by carrying 7 different Covid-19 vaccines in containers with special cooling systems.
With these successful operations, Turkish Cargo increased global market share to 8 percent in pharmaceutical transportation and became one of the most active carriers in vaccine transportation.
What are your plans to make your pharma capabilities and facilities stronger now that it’s certain that air cargo’s main mission of distributing vaccines and other vital medical supplies remain crucial to humanity’s survival? (Please include info on people training, certifications, etc.)
Turkish Cargo’s Istanbul Hub has special storage areas for temperature-controlled medicines, vaccines, medical supplies and food products. All products are monitored with hygienic and standard maintenance processes.
Perishable cargo with sensitivity to temperature are stored thanks to special storage rooms with four different temperature ranges at the cargo terminal equipped with high standards. Temperature values of special cargo rooms are monitored via the telemetry automatic system, and there is a system in place which is capable of sending an automatic message in case of any alarm caused by any difference in the temperature range.
Thermal covers and thermal dolly services are provided upon customers’ request for protection against external environment conditions for perishable cargo with sensitivity to temperature. For temperature sensitive products, thermal dolly is used as an auxiliary equipment to prevent any deterioration in the contents of the products during carriage from temperature-controlled areas to baggage area or vice versa for operations with a connection period of up to 4 hours.
Perishable cargo is monitored under an agreement with the Active Cold Chain brand Envirotainer, which provides our customers with active temperature-controlled containers and QEP (Qualified Envirotainer Provider), referring to the accreditation proving that an airline company is capable of performing the Envirotainer transportation operations successfully at stations.
Turkish Cargo, carries out operations at top level by holding the “CEIV Pharma” certificate issued by IATA CEIV (Center of Excellence for Independent Validators). We continue to take off with our special products established for shipment of pharmaceuticals and medical supplies, and access more than 300 destinations in 127 countries across the world.
Larger terminal and better service at the New Mega Hub;
What are the biggest challenges facing the air cargo industry in our current situation? Please share your opinion on how this can be addressed.
The issues, experienced currently by the air cargo industry can be listed under a few main topics. Such issues involve the topics, namely digitalization, capacity, security and safety, liberalization, sustainability and intra-industry cooperation, respectively.
Digitalization
Air cargo industry has still not taken the steps expected to be taken for the digital transformation. The significance of the digital transformation is demonstrated by the industries such as banking that has overcome the issues which have arisen in global terms and been observed in particular during the course of the pandemic.
Continuing to work considerably on paper at the present, airline industry experiences quality and transparency issues in integrated supply chains such as forwarders, shippers, ground handlers and truckers.
As a solution for such issue, e-AWB and e-Freight initiatives, which the airlines have a key role, have made a noteworthy progress during the recent period of 5 years. Similarly, air cargo industry, in which speed and safety have a substantial precedence compared to the other modes, has made a great progress towards the capability to track the shipments instantaneously and communicating the shipment movements instantaneously to the consignor and the consignees.
Finally, the use of robots at the warehouse processes have started and the processes have been automated as led by the E-Commerce and Express industry, and all stakeholders have headed towards such type of investments due to the cost savings as based on the acceleration of the operations.
Capacity
The outbreak of Covid-19, which has been declared as a global pandemic in March 2020, had negative effects also on the air cargo industry just as it had for all of the other industries. The travel restrictions, exportation limitations and measures taken for sealing the borders, started to be implemented for the purpose of fighting against the pandemic, have notedly affected the international airliner traffic.
The flights operated by the airliners that carry only cargo (paxfre or preighter flights), which have been started in March 2020 by the airlines as a dynamic solution, can be given as an example as the solution for such issue.
Apart from that, we observe that airlines have started to make use of their freight fleets more actively and also that the orders for the freighters have also increased worldwide. We are of the opinion that such solutions will provide significant contributions to the offering of such needed capacity to the industry.
Safety and Security
We can summarize the safety and security issue in the air cargo industry as the differentiation of the guidelines and interpretations established by the governments and the associations and also as the adaptation of the security and safety processes applied during the course of the shipment of the cargo to the new situation related to the pandemic.
New security screening technologies are being considered but the follow-up and coordination are required for the purpose of ensuring that the stakeholders of any and all business models in the air cargo industry act in accordance to new regulations. As a solution for such issue, standardization and enhancement of the cooperation between all stakeholders in the industry.
Sustainability
Along with the global warming, quest for clean energy prompts the search of alternative resources in respect of the environmentally hazardous fuels in terms of carbon emission. Investment in such fields by the companies will place significant burdens in financial terms, coupled with the ACCF (Air Cargo Carbon FootPrint) program, implemented by IATA for the purpose of accomplishment of its projects under the sustainability heading. Revenue-decreasing factors may be encountered in the fields such as reduction of the tonnages being carried (due to fuel consumption) and modernization of the fleets due to the risks of sanctions by the regulatory and supervisory supranational organizations. In respect of such issues, companies managed to reduce the fuel costs further, in particular, with the increase at the factory-fresh and younger freighter fleet during the recent years. 2% of the global carbon emission is generated purely by aviation; given the fact that the share of aviation is lower as compared to that of maritime transportation, which constitute 4% of the global carbon emission, air cargo is the mode of transport at which the carbon emission per shipment is the highest. All stakeholders of the air cargo industry will also have a key role in the accomplishment of the carbon emission targets set for the aviation industry.
How important is digitalization in the industry as we thread through the new normal?
The future of air cargo is based on technological developments and digital transformations.
In the last five years, several air cargo companies have involved with virtual integrations due to the digital developments. Therefore, we think that the air cargo sector has entered into a rapid development in digitalization and technology. We think that this will continue rapidly in the upcoming periods.
The air cargo industry is growing very rapidly. An estimated 7.4 billion parcels are flown each year, and approximately 2.5 million lives are saved every year thanks to vaccines shipped via air, according to the IATA. This huge industry is changing and developing still. The development of technology enables new trends to emerge.
Air transport new trends; Next generation fuel types; ‘Sustainable aviation fuel (SAF)’, less emissions, more efficient aircraft and of course; ‘The rise of e-freight’, Fuel savings with light pallets and containers; ‘Lightweight unit load devices (ULD)’ an ‘Investments in carbon offsets’ etc. The increase in sectoral competition also increases the tendency to new trends.
Customers of the modern world demand complete and perfect visibility, faster, safer and more effective transportation, online tracking and much more control on where, when and how their cargo are moving. The air cargo stakeholders have already adopted the emerging technologies such as Virtual Reality, Iot (Internet of Things), cloud and E-Freight in the modern innovation journey, and what’s more, wearable products have started to be used for Big Data analytics, block chain, drones and animals.
Air cargo communities that can keep up with technological developments and complete digital transformation processes will be positioned as leaders in the sector.
Speaking of digitalization, can you tell us more about Turkish Cargo’s investment on innovations and technology?
Turkish Cargo always strive to gear up ourselves in order to provide better service to our customers and target to be one of the best air cargo carrier in 2023.
Within the scope of this important goal, we took good steps towards digitalization and one of them is of them is our robotic process automation. We have been running a robotic process automation (RPA) for our internal business processes known as RPA since 2019. Currently, we have 5 different robots named Alpha, Bravo, Charlie, Delta, Foxtrot which are responsible for a total of 10+ different processes in Turkish Cargo for now and adding more and more processes as we go along the way.
For our new cargo terminal SmartIST is the biggest project we are processing in Istanbul now and target to move all operations over to this new facility this year. It is built to reach 4m tonnes of annual capacity when all phases are completed. Inside the SmartIST, we also aim to use modern technology such as automated storage systems, 3D ULD planning and unmanned ground vehicles and integrate them fully into warehouse management systems and work process.
Besides, we create the online booking system TKGO for our customers, all forwarders can be able to perform online bookings, tracking transaction, claim case.
In our Region, over 70% of the cargo reservation is directly done by this platform, customers could be able to perform their transactions online 24/7 without any intermediaries. Also, our on-going digitalize system, Turkish Cargo Chatbot (Cargy) is launched early this year, offers customers an easily way to get instant shipment details in 24/7 including AWB status, tariff, station capability through the exclusive WhatsApp account.
Please share some lessons we could all learn from this pandemic.
Supply Chain – The pandemic period, especially the critical processes in vaccine transportation, have shown us that air cargo logistics is vital for the sustainability of the supply chain even under difficult conditions. As the flag carrier brand, we are among the most active carriers in pharmaceutical transport with a global market share of 8 percent in vaccine transportation and in line with the ever-increasing vaccination, we commit to be fully involved in the process throughout 2021.
Digital transformation – The global pandemic has created vulnerability over the world economy and trade. During the period we have been getting through, Turkish Cargo has rapidly adapted to the changing circumstances to maintain continuity of logistics and supply chain was of vital importance indeed, through experience.
Technological infrastructure investments made by Turkish Cargo towards digitalization and initiatives focused on e-Commerce, which we started long before COVID-19, have been crucial in practice during the pandemic period. The brand will go further enhancing service quality to meet the needs of our customers and sector partners, involved in our global network, with conveniences thanks to our digitalization-related activities.
Technology has made the world smaller and faster.Real time communication with people from all over the world at different time zones through phones and gadgets
