Up to 600 km on one single charge. That’s how far Volvo’s next-generation heavy-duty electric truck will be able to drive. The longer range represents a break-through for long-distance transport with zero tailpipe emissions.
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The electrification of heavy trucks is continuing across the world and longer distances are now becoming a possibility.
This year, Volvo is expected to launch a new long-range version of its FH Electric that will be able to reach up to 600 km on one charge.
The global truck manufacturer made the breakthrough announcement in September 2024 saying this will allow transport companies to operate electric trucks on interregional and long-distance routes and to drive a full working day without having to recharge. The new Volvo FH Electric will be released for sale during the second half of 2025, it added.
“Our new electric flagship will be a great complement to our wide range of electric trucks and enable zero-exhaust emission transport also for the longer distances. It will be a great solution for transport companies with a high annual mileage on their trucks and with a strong commitment to reduce CO2,” said Roger Alm, President Volvo Trucks.
Five years of electric leadership
The enabler for the 600 km range is Volvo’s new driveline technology, the so-called e-axle, which creates space for significantly more battery capacity onboard. More efficient batteries, a further improved battery management system and overall efficiency of the powertrain also contribute to the extended range.
Volvo Trucks is a global leader in medium- and heavy-duty electric trucks with eight battery-electric models in their portfolio. The wide product range makes it possible to electrify city and regional distribution, construction, waste management and, soon, long distance transport. Volvo has so far delivered more than 3,800 electric trucks to customers in 46 countries around the world.
“The transport sector represents seven percent of global carbon emissions. Battery-electric trucks are important tools to reduce the climate footprint. Besides the important environmental gains that electric trucks bring, they offer truck drivers a much better working environment, with much lower levels of noise and vibrations,” Alm noted.
Volvo Trucks drives the transition towards fossil-free transport to reach its net-zero emissions target by 2040 using a three-path technology strategy. The three-path technology approach is built on battery electric, fuel cell electric and combustion engines that run on renewable fuels like green hydrogen, biogas or HVO (Hydrogenated Vegetable Oil).
BOX OUT
Volvo Trucks ramps up the use of low-CO2-emission steel
Along with this breakthrough announcement, Volvo said it is increasing the use of low-CO2-emission steel in its trucks. This steel is produced with recycled material and fossil-free energy and will be used in tens of thousands of Volvo trucks starting next year.
Volvo is now ramping up the use of low-CO2-emission steel in its trucks. Volvo was the world’s first truck manufacturer to introduce this type of steel in its electric trucks in 2022. Now the company is expanding the use of low-CO2-emission steel to include all drivelines.
The new steel is produced by the Swedish steel company SSAB and called SSAB Zero. It is made from recycled material and produced using fossil-free electricity and biogas. As a result, CO2 is reduced by around 80% compared to the production of conventional steel using fossil energy.
This year, the frame rails in around 12,000 Volvo FH and FM trucks will be made of low-CO2-emission steel. This will result in savings of 6,600 tons of CO2 Equivalents. As the availability of low-CO2-emission steel increases, it will be introduced in more truck models as well as in other parts of the truck.
Volvo is also planning to replace other materials in its trucks with lower emissions alternatives.
“This is an additional step towards our zero emissions vision. Steel is one of the main materials in our trucks. We are also looking to exchange other materials, such as aluminium and plastic, to low emission alternatives. We are proud to lead the way in the industry when it comes to sustainable material in our trucks,” said Jan Hjelmgren, Senior Vice President Product Management and Quality, Volvo Trucks.
Half of the truck consists of steel
The potential for lowering CO2 emissions is high as almost half of the truck consists of steel (47% of a Volvo FH diesel truck), and it represents about 44% of the CO2 emissions from the production (cradle to gate) out of the total 21 tons CO2 Equivalents for the Volvo FH diesel.
Volvo Group is collaborating with several suppliers around low-CO2-emission steel. Low-CO2-emission steel will be an important complement to the traditional and recycled steel used in Volvo’s trucks.
Volvo Trucks is committed to the Paris agreement and to achieving net-zero greenhouse gas emissions in the supply chain by 2040, at the latest.
“We are continuously striving to further minimize our climate footprint. We are also moving towards greater circularity in both our operations and our trucks. Many of our factories, transports and dealers are today running on renewable energy,” said Hjelmgren.
Text and Photos sourced from www.volvotrucks.com
Facts:
The main materials in a Volvo FH diesel truck are steel (47%), cast iron (26%), polymers (11%) and aluminium (8%). They stand for around 44%, 26%, 14% and 8% of the CO2 emissions from the production (cradle to gate) out of the total 21 tons CO2 Equivalents for the Volvo FH diesel.
Low-CO2-emission steel is a steel with a significant reduction of CO2 (80% or more) from cradle to gate. CO2 Equivalents includes all greenhouse gas emissions including e.g. methane
Under the visionary leadership of Varlín Vissepó, the Director of the Puerto Rico Life Sciences Air Cargo Community, Puerto Rico has become the premier hub for life sciences exports. Leveraging advanced air cargo logistics, climate-controlled warehousing, and strategic global connections, the island ensures the efficient and reliable distribution of critical healthcare products worldwide, solidifying its reputation as “the medicine cabinet of the world.”
In our ever-evolving world, healthcare logistics is more important than ever. It’s the backbone that ensures life-saving medications, medical devices and essential supplies get where they need to be, safely and on time.
Meet Varlín Vissepó, the Director of the Puerto Rico Life Sciences Air Cargo Community. With extensive experience in logistics and a keen understanding of the life sciences sector, Vissepó is leading the charge in transforming how healthcare products are transported.
Under his guidance, the Puerto Rico Life Sciences Air Cargo Community has become a hub of innovation, using the latest technology and strategic partnerships to streamline supply chains and improve reliability.
Vissepó believes in the power of agility and resilience, especially when facing global challenges like pandemics and natural disasters.
Vissepó speaks with Air Cargo Update on this matter.
Market Size
The global healthcare logistics market is experiencing significant growth, valued at USD 184.43 billion in 2023 and projected to reach USD 340.63 billion by 2032, with a CAGR of 7.61% (Straits Research).
This growth is driven by the increasing demand for pharmaceuticals and medical devices, as companies expand their product lines to meet evolving market needs. The rise in chronic diseases, especially in rural areas, has heightened the need for advanced healthcare products and services, necessitating the safe delivery of these items. Additionally, the demand for temperature-controlled logistics is rising due to innovative therapies requiring cold chain solutions.
Regionally, North America leads the market, driven by an aging population and increasing chronic disease prevalence, which boosts demand for secure transport of medical products.
The U.S. is a major exporter of medical products, further supporting market growth. In Europe, the market is expected to grow at a CAGR of 7.33%, with healthcare operations focusing on value-based care and regulatory compliance. The COVID-19 pandemic has underscored the importance of a resilient supply chain, prompting European healthcare providers to ensure a steady supply of essential medical goods, thereby driving regional market expansion.
‘The Medicine Cabinet of the World’
Puerto Rico’s impressive growth in the life sciences sector has firmly established the island as the largest biopharmaceutical exporter among all U.S. jurisdictions, with exports reaching over 120 countries. This achievement has earned Puerto Rico the nickname “the medicine cabinet of the world.”
Vissepó, highlights this success: “Our island’s ability to manage complex logistics operations, particularly in the pharmaceutical and medical sectors, is a testament to our expertise and dedication.”
The expansion of Puerto Rico’s life sciences industry has underscored its capability to handle intricate logistics, especially in distributing pharmaceutical and medical products via air cargo. “We adhere to the most stringent Good Distribution Practices (GDP),” Vissepó notes, emphasizing the island’s commitment to maintaining high standards in logistics operations.
“With the increase in both the volume and frequency of cargo flights, Puerto Rico has become a crucial junction in the global supply chain.
“Our strategic location and robust infrastructure have reinforced our reputation not just as a production center, but as a pivotal hub in healthcare logistics,” Vissepó explains.
This strategic positioning allows Puerto Rico to play a vital role in ensuring the efficient and reliable distribution of healthcare products worldwide, further solidifying its status as a leader in the industry.
Puerto Rico’s Healthcare Exports on the Rise
Puerto Rico’s healthcare export sector has seen a significant boost, with an 8 percent rise in exports, now totaling approximately $60 billion. This growth is largely driven by high-demand products such as biologics, which require strict Good Distribution Practices (GDP), meticulous handling, and controlled transportation conditions.
“Puerto Rico is particularly equipped to manage these stringent requirements,” says Vissepó.
In addition to biologics, the island is also seeing growth in exports of specialized pharmaceuticals, advanced medical devices, and cutting-edge gene and cell therapies.
“Our robust cold chain logistics and air cargo infrastructure ensure that these sensitive products reach global markets efficiently and in prime condition,” Vissepó explains.
This infrastructure is crucial for maintaining the quality and efficacy of these products during transit.
The expansion of direct air routes has been instrumental in supporting this growth. “Timely deliveries are essential for maintaining the integrity and efficacy of these crucial products,” Vissepó notes, highlighting how the increased connectivity allows Puerto Rico to meet the demands of the global healthcare market effectively. This strategic advantage reinforces the island’s position as a key player in the international healthcare logistics landscape.
Expanded Air Cargo Routes Boost Distribution
The recent expansion of air cargo capacity, especially towards Europe and South America, has significantly impacted the distribution of life sciences products from Puerto Rico. This enhanced capacity has shortened transit times, which is crucial for temperature-sensitive products like vaccines and biologics that have limited shelf lives.
“Shorter transit times mean that our products maintain their efficacy and reach markets more efficiently.”
By opening direct routes to emerging markets in South America and strengthening connections with European and Asian destinations, Puerto Rican companies can now deliver their products faster and more reliably. This improvement not only enhances Puerto Rico’s competitive edge but also broadens its reach in the global healthcare market.
“Direct routes eliminate unnecessary stops and potential delays, ensuring that our sensitive medical products arrive in optimal condition,” Vissepó explains.
The expansion of air cargo capacity has allowed Puerto Rico to better serve its international partners, providing timely deliveries that are essential in the healthcare sector.
“Our increased connectivity to key markets ensures that we can meet the growing demands of the global healthcare industry.”
As a result, Puerto Rico continues to solidify its role as a pivotal hub in the life sciences supply chain, ensuring that life-saving products are distributed efficiently worldwide.
Strategic Geographic Location
Puerto Rico’s prime geographic position offers life sciences companies unparalleled access to key markets in the United States and Latin America. This strategic location enables swift and efficient distribution, minimizing transit times and reducing logistical complexities. “Being centrally located allows us to serve major markets with ease, ensuring that our clients can reach their destinations quickly and reliably.”
In addition to its proximity to the Americas, Puerto Rico has established direct air routes to Europe, providing competitive transit times that are essential for time-sensitive medical products.
These direct connections help life sciences companies maintain the integrity of their products during transit.
“Our direct flights to Europe eliminate unnecessary stops, ensuring that sensitive pharmaceuticals and medical devices arrive in optimal condition.”
Advanced Cargo Facilities and Cold Chain Infrastructure
Puerto Rico boasts specialized air cargo facilities equipped with the latest technology for temperature control and security.
“Our state-of-the-art cold chain infrastructure is designed to handle even the most sensitive products, guaranteeing that they reach their destinations in pristine condition,” Vissepó highlights.
With over 60 years of manufacturing experience, Puerto Rico meets the highest FDA and EMA regulatory standards. This long-standing expertise provides life sciences companies with confidence that their products are handled with the utmost quality and compliance.
“Our rich history in manufacturing and strict adherence to FDA and EMA standards make Puerto Rico a trusted partner for life sciences exports.”
Logistical Expertise and Reliable Support
Puerto Rico’s sophisticated logistical network and expert workforce ensure seamless export processes for life sciences companies. From packaging to transportation, every step is managed with precision to meet the unique demands of the healthcare industry.
“Our logistical expertise and comprehensive support services enable companies to focus on innovation while we handle the complexities of their supply chain,” Vissepó adds.
Advancements in air cargo logistics have been pivotal to the remarkable growth and success of Puerto Rico’s life sciences industry, which now accounts for 70% of the island’s exports and contributes 35% to its GDP.
These innovations have enabled Puerto Rican companies to meet the stringent demands of the global market, particularly for high-stakes products like biologics.
“Integrating real-time monitoring technologies has revolutionized how we manage and track our shipments.
“With real-time data, we can ensure that temperature-sensitive products remain within required conditions throughout their journey, minimizing the risk of spoilage and maintaining their efficacy.”
The adoption of IATA’s CEIV (Certified Evaluation Inspection Verification) cold chain management standards has further enhanced Puerto Rico’s logistical capabilities.
“Achieving CEIV certification was a game-changer for us,” Vissepó notes. “It not only signifies our commitment to maintaining the highest standards in temperature-controlled logistics but also instills confidence in our global partners about the reliability of our services.”
Optimized flight routes have also played a critical role in reducing transit times and increasing the efficiency of deliveries.
“By strategically planning our flight paths, we can ensure rapid and reliable transport of life-saving medical products.”
This optimization is especially crucial for biologics, where maintaining a consistent temperature and ensuring swift delivery are essential for product integrity.
Moreover, the integration of these advanced logistics solutions has solidified Puerto Rico’s position as a leading hub for the life sciences industry.
“Our continuous investment in cutting-edge logistics technology and infrastructure allows us to meet the most rigorous global standards.
“This not only supports the growth of our local companies but also reinforces Puerto Rico’s reputation as a trusted and reliable partner in the global healthcare supply chain.”
Ensuring Cargo Integrity and Enhancing Efficiency
The Puerto Rico Life Sciences Air Cargo Community is dedicated to maintaining the integrity of sensitive life sciences cargo through strategic initiatives.
“Dedicated committees are constantly identifying areas for improvement and advancing educational efforts to ensure that every piece of sensitive cargo is handled with the utmost care.”
A key focus is achieving widespread CEIV (Certified Evaluation Inspection Verification) certification, which “elevates the overall quality of our logistics chain.
“Upgraded airport infrastructure with state-of-the-art cold storage and specialized cargo handling ensures products remain in optimal conditions. Our enhanced infrastructure allows us to keep life sciences exports in prime condition from arrival to final destination.”
Additionally, the Community leverages data from Rotate to boost strategic planning and operational efficiency.
“Rotate data gives us the visibility we need to anticipate logistical needs and adjust our air cargo routes swiftly,” Vissepó states. This data-driven approach optimizes flight schedules and inventory management, ensuring timely and reliable shipments.
“By analyzing data from Rotate, we can better manage our inventory and ensure critical products are always available,” he notes. Historical data analysis helps identify trends and prepare for future demand, improving the reliability and speed of exports.
“Data from Rotate has been instrumental in enhancing our strategic planning and operational efficiency,” concludes Vissepó, highlighting its role in solidifying Puerto Rico’s leadership in the global healthcare supply chain.
Climate-Controlled Warehousing and Emerging Trends
The development of climate-controlled warehousing is pivotal for Puerto Rico’s thriving life sciences industry. These specialized facilities ensure that pharmaceutical and biological products are stored in optimal conditions, safeguarding their integrity against temperature fluctuations.
“Our climate-controlled warehouses are essential for maintaining the quality of sensitive products from storage to transport. This infrastructure minimizes risks, reduces insurance claims, and ensures that products reach their destinations in pristine condition.”
Aligned with global trends in the life sciences logistics market, Puerto Rico is proactively positioning itself to capitalize on emerging demands.
“By expanding our cold chain infrastructure and adopting sustainable practices, we are meeting the evolving needs of the global market.”
Additionally, advancements in AI and autonomous systems are being integrated to enhance operational efficiency and resilience. Strengthening air connections with key markets in Europe and South America further supports rapid and reliable distribution of life sciences products.
“Embracing these trends allows Puerto Rico to remain a preferred logistics hub, offering quality, efficiency, and sustainability that life sciences companies prioritize.”
These initiatives not only bolster Puerto Rico’s competitive edge but also ensure its continued leadership in the global life sciences logistics landscape.
The etruck is perfect for use in automotive logistics where maximum load volume up to three meters in interior height is more important than high load weights.
Bocholt/Munich, Germany: With handover of the first MAN eTruck on 05 December to the Duvenbeck Group in Munich, MAN Truck & Bus is setting another milestone in the electrification of freight transport. The Ultra Low Liner eTGX semitrailer tractor, specially developed for the loading volume requirements of automotive logistics, is set to make Volkswagen plant logistics particularly climate-friendly in the future. In accordance with the LOI signed by both parties, Duvenbeck intends to put up to 120 units of the MAN eTGX into service by 2026. Duvenbeck will deploy the MAN eTruck in various areas of the Rhine-Ruhr and Benelux freight forwarding region as part of VW’s plant logistics. “With the Ultra Low Liner eTruck, MAN has developed a solution that is per-fectly tailored to the requirements of the automotive industry. No other series-produced electric semitrailer tractor can pull trailers with an interior height of three meters. This makes it the ideal choice for transports with high volume requirements,” explains Friedrich Baumann, Chief Sales & Customer Solutions Officer at MAN Truck & Bus. “We are delighted to have two strong partners at our side, Duvenbeck and Volkswagen, to bring this innovation to the road.”
Duvenbeck: Partner for Green Logistics
Sustainability has been a central element of Duvenbeck’s corporate strategy for years. With the “Green Logistics” initiative, the company focuses on low-emission and resource-saving transport solutions. “The MAN eTruck is an important step towards emission-free logistics. It helps us to meet our customers’ requirements and protect the environment at the same time. Sustainability is part of our everyday practice,” emphasizes Bernd Reining, Senior Director Procurement, Duvenbeck.
Duvenbeck continuously implements measures to optimize energy efficiency and conserve resources. These include the use of alternative drive systems, the reduction of empty runs and innovative charging concepts. The use of the MAN eTruck marks a further contribution to minimizing CO₂ emissions in the supply chain.
Climate-friendly logistics for Volkswagen Logistics
Duvenbeck will be using the MAN eTruck to supply Volkswagen production in future. Simon Motter, Head of Volkswagen Group Logistics, underlines the importance of the project: “Our partner Duvenbeck is taking a bold step forward: MAN eTrucks are being used for the first time at the Volkswagen plant in Wolfsburg. This means that the technology’s suitability for everyday use and cost-effectiveness can now be proven.
“The use of MAN eTrucks is part of the goTOzero impact logistics program, with which Volkswagen has embarked on the path to consistently climate-friendly logistics. In the long term, the use of electric trucks is the most important lever for reducing CO2 emissions in road transportation.
“Where the strategically prioritized use of rail with green electricity is not possible, for example due to a lack of rail connections, BEV trucks with green electricity are favored. In the cross-modal concept, they are used according to their strengths: Rail on long-distance routes, emission-friendly trucks on pre-carriage and onward carriage as well as on short and medium-distance routes.”
Technological innovation as the key
The Ultra Low Liner eTruck MAN eTGX is a pioneer in its class: with a semitrailer height of just 950 mm, a very short wheelbase of 3.75 meters and yet maximum battery capacity, it offers a range of around 500 kilometres. This makes it perfect for use in automotive logistics, where maximum load volume up to three meters in interior height is more important than high load weights. Thanks to its modular battery concept with a choice of four, five or six battery packs and power levels of 449 and 544 hp, it can be op-timely adapted to any transport task. In addition to the standard CCS charging technology (up to 375 kW), it can also be ordered with the new MCS standard with up to one megawatt charging power, which enables even faster intermediate charging during the driver’s break from driving.
Transport companies also benefit from MAN’s 360-degree eMobility Consulting when switching to electromobility: the advice on switching to electromobility includes customer-specific analyses of vehicle deployment and charging infrastructure requirements. MAN’s range of services also includes the provision of charging infrastructure itself through partnerships with charging infrastructure suppliers. In addition, as with conventionally powered trucks, service contracts and financing solutions specially tailored to electric mobility as well as numerous digital services are available for the use of the new electric lions. These include the MAN eReadyCheck, which customers can use to check how their delivery routes can be driven purely electrically, as well as the MAN Charge & Go charging service including charging card, which enables simple, consolidated charging planning and billing for international routes.
TIP Group: Flexibility through rental
The MAN eTGX is being deployed at Duvenbeck by the TIP Group, one of the leading manufacturerindependent commercial vehicle rental companies and service providers for the transport and logistics industry. By providing the MAN eTruck, TIP enables companies like Duvenbeck to react flexibly and quickly to the growing demands of sustainable logistics.
“Our aim is to equip our customers with modern, environmentally friendly vehicles and to support them on their way to greater sustainability,” explains Oliver Bange, Vice President Central Europe Region of the TIP Group. The TIP Group is actively committed to a more sustainable future in the logistics industry. With its focus on zeroemission vehicle rental, TIP is making an important contribution to the introduction of zero-emission solutions. This innovative approach not only supports the decarbonization of the industry, but also consistently drives the transformation towards more climate-friendly logistics. Source: Man Truck & Bus.
Michelle House, Managing Director of GAC GB, Dimitri Arnaudin, Director of Digital and Innovation, and Adrien Thominet, Executive Chairman of ECS Group, speak with Air Cargo Update about the Discovery Platform. This innovative tool is revolutionizing air cargo training with personalized, role-specific learning, ensuring long-term career growth and operational efficiency.
By Ayesha Rashid
Thinking about a career in air cargo?
You’ve probably heard it’s a complex, highly regulated field, and for a good reason: transporting goods by air safely and efficiently requires skilled hands and sharp minds. Training is essential to make that happen.
Traditionally, air cargo training has been implemented using a one-size-fits-all approach, which has resulted in critical gaps in knowledge and caused inefficiencies within the industry.
But that’s where ECS Group is stepping up to redefine industry standards with the Discovery Platform.
Developed under the guidance of Dimitri Arnaudin, Director of Digital and Innovation, and Adrien Thominet, Executive Chairman of ECS Group, Discovery is a fresh, forward-thinking training tool that’s changing the game for air cargo recruits.
By tailoring training to each role, Discovery ensures you’re equipped with the precise skills needed to thrive.
In this article, we’ll dive into why personalized training is so important and how ECS Group’s Discovery Platform is shaping the future of growth and learning in the air cargo industry.
With the global air cargo market valued at USD 185.3 billion in 2023 and expected to grow at a rate of 4.3% annually between 2024 and 2032, this innovative approach comes at a crucial moment.
As e-commerce continues to boom and global shipping volumes soar, the need for skilled professionals in air cargo has never been greater (Global Market Insights).
ECS’s Discovery E-Learning Platform
ECS’s Discovery platform is an innovative e-learning solution designed to provide air cargo recruits with a comprehensive understanding of the industry.
The platform features a variety of interactive modules, videos and quizzes tailored to different learning styles, ensuring that complex concepts are easy to grasp.
What distinguishes Discovery is its ability to simulate real-world scenarios, offering learners a risk-free environment to practice and apply their knowledge.
This approach helps participants build confidence and develop the skills necessary to excel in their roles.
ECS’s Discovery platform recognizes the unique requirements of each role in the air cargo industry, offering tailored learning paths to meet specific job needs.
These customized plans provide targeted training, ensuring employees gain the skills and knowledge essential for their positions.
This personalized approach helps learners stay focused, develop a deep understanding of their responsibilities, and contribute effectively to their organizations.
Dimitri Arnaudin, Director of Digital and Innovation at ECS Group, highlighted the tailored approach of the Discovery e-learning platform, “Our platform offers training specifically designed to align with employees’ job roles, creating a focused and relevant learning experience. For new recruits, we provide learning paths that cover IT, compliance, sustainability, job-specific courses, and industry-related topics such as e-booking.
“We start with the Air Cargo Onboarding course for those entering the industry and also offer Microsoft Office training to enhance their skill set. For instance, a new hire in the Flight Planning and Reservations team would undertake the CargoSpot Operations training in addition to mandatory courses. Similarly, a new Sales team member would be enrolled in Quantum, CargoSpot: Pricing module, and Apollo courses, tailored to their role-specific needs.”
Keeping Up with Regulations and Best Practices
The air cargo industry is highly regulated, making compliance crucial to avoid costly mistakes and reputational risks.
The Discovery platform offers tailored training programs to ensure employees stay updated on the latest regulations and guidelines.
As industry best practices evolve, these platforms also provide training on recognized standards, enabling companies to optimize operations, reduce errors, and boost efficiency.
In addition, discovery platforms emphasize process improvement and digital solutions, offering training on automation, data analytics, and digitalization.
Arnaudin notes, “Our ongoing efforts have focused on educating and training for process improvement, implementing IT digital solutions, and promoting best practices. Recently, we’ve expanded our offerings to include specialized courses on Pharma Transportation and are preparing to launch a new course on Supply Chain Management. We also encourage employees to take regular refresher courses to ensure their industry knowledge remains current.”
Skills and Qualifications for Air Cargo Staff
The air cargo industry requires a unique blend of technical skills, knowledge and personal qualities to ensure safe and efficient operations.
When recruiting and training staff, companies prioritize candidates with a strong foundation in cargo handling, safety regulations and logistics management.
In addition to technical expertise, communication, problem-solving, teamwork and adaptability are highly valued.
Soft skills such as attention to detail, time management and organization are essential for efficient operations and meeting deadlines.
Air cargo companies also seek proactive, flexible individuals who can think critically and respond effectively to unexpected challenges.
Adrien Thominet, Executive Chairman of ECS Group, stated, “Our goal is to go beyond basic criteria and focus on a broader vision of future skills in the air cargo sector. It’s not just about finding candidates with the right technical abilities; we are dedicated to developing individuals who understand market dynamics, can anticipate technological advancements, and adapt to the increasing demands for sustainability and flexibility.
“Our approach sets us apart from other GSAs by offering a strategic vision to our clients, ensuring that every recruitment effort enhances their ability to innovate, grow, and remain competitive in an evolving industry. This commitment to building future-ready teams is what truly differentiates us.”
Beyond technical skills, adaptability, anticipation of customer needs, and alignment with sustainability goals are increasingly important.
Candidates who are committed to continuous learning and improving eco-friendly practices are highly sought after, as these qualities contribute to both operational success and a positive environmental impact.
Assessing Competency and Development
Studies show that 40% of employees leave within the first year due to inadequate training and support.
To combat this, thorough evaluations during recruitment and post-onboarding are vital.
These evaluations identify skill gaps, ensuring new hires are better prepared, which boosts job satisfaction and reduces turnover, saving time and resources.
Michelle House, Managing Director of GAC GB explains, “At GAC GB, we take a comprehensive approach to assessing competency. From the outset, we evaluate industry knowledge and use psychometric tests to measure key competencies like planning, organization, and attention to detail. Once onboard, employees dive into tailored training programs designed to match their specific roles.
“We believe in fostering continuous learning throughout their careers, and to support their growth, employees have regular one-on-one sessions and monthly performance reviews with mentors and managers. This ongoing feedback ensures their development remains on track and aligned with both their goals and the company’s needs.”
Thominet said, “Airlines today demand more than just operational efficiency—they want partners who deliver excellence at every level. Competency assessments go beyond meeting immediate job requirements; they’re about aligning with the long-term goals of the air cargo industry. We collaborate closely with airlines to understand their unique needs, shaping our approach to recruitment and development.
“From psychometric testing to tailored training programs post-onboarding, our aim is to continually enhance our team’s capabilities. This ensures our staff not only meets but exceeds the high standards set by our airline partners, giving them the confidence that their cargo operations are in expert hands.”
Tech-Driven E-Learning for Innovative Mindset
E-learning platforms have transformed training in the air cargo industry, using advanced technology to create engaging, interactive, and personalized learning experiences.
These tech-driven solutions equip teams with the skills needed to thrive in the fast-evolving cargo sector, helping businesses stay ahead and maintain a competitive edge.
Thominet said, “Technology is at the core of our success, and its integration into both training and operations reflects our forward-thinking vision for the air cargo industry. Tools like CargoSpot, Quantum and SkyPallet, which incorporates 3D space optimization, showcase how we’re leveraging advanced technology to enhance precision and efficiency. For example, 3D palletization modelling allows our teams to visualize and optimize cargo space in real time, boosting operational efficiency and reducing costs for our partners.
“Our e-learning platform ensures that all team members master these technologies, but our approach goes beyond just training on tools. It’s about fostering a culture of innovation. By embracing 3D space optimization and other advanced systems, we’re not only improving current operations but also paving the way for the future of cargo management. This proactive strategy sets us apart from other GSAs, establishing us as leaders in technology adoption and operational excellence.”
Managing the Demands of Air Cargo Jobs
Thominet emphasizes the physical and mental challenges that air cargo roles can present, “We recognize that air cargo jobs can be physically and mentally demanding. In our training programs, we ensure that employees are made aware of these challenges and are equipped with the knowledge and tools to manage them effectively. This includes guidance on health and safety practices, as well as an emphasis on maintaining well-being in a fast-paced environment.
“We also encourage ongoing learning and support to help employees adapt to the demands of their roles.”
Thominet explains that new recruits in the GSA sector often face unique challenges, “New recruits in the GSA sector of the air cargo industry often face challenges such as understanding the complexities of airline sales, navigating multiple airline systems, and managing client relationships effectively.
“During training, we focus on familiarizing them with key airline systems, sales processes, and customer service expectations. We also provide guidance on industry-specific regulations and best practices, ensuring that new recruits are equipped to handle the unique demands of a GSA role. Practical training and mentorship help ease their transition into these responsibilities.”
Through this comprehensive approach, new recruits are not only prepared for the technical aspects of their roles but also supported in managing the mental and physical demands that come with the fast-paced air cargo environment.
Specialized Training for Sensitive Cargo
Thominet highlights the importance of thorough training for handling sensitive cargo, “Airlines have strict protocols in place to ensure that their cargo staff are thoroughly trained in handling high-value or sensitive goods, such as pharmaceuticals or live animals.
“This typically involves specialized training programs that focus on industry standards, regulatory requirements, and specific handling procedures for these types of cargo. Employees are trained on how to maintain proper conditions, such as temperature control for pharmaceuticals, or ensuring safety and welfare standards for live animals.”
To stay compliant with evolving regulations, regular updates and refresher courses are conducted, “Additionally, regular updates and refresher courses are conducted to ensure staff remain compliant with evolving regulations and best practices in these areas.”
Thominet continues by sharing the company’s initiative to expand its training offerings, “Starting this year, we are launching training programs for specific commodities and products. We have already published a training on Pharmaceuticals Transportation, receiving positive feedback, and employees find it extremely useful.
“Looking ahead, we are planning to introduce training for Dangerous Goods Transportation and are also in the process of launching a Supply Chain Management in Air Cargo course.”
Arnaudin adds to the conversation by outlining ECS Group’s focus on safety and compliance, “Our training programs emphasize promoting best practices and regulations. We offer training programs on the ECS Code of Ethics and Business Conduct, GDPR regulations, IT Security Awareness, and Sustainability. We require all employees to successfully pass these courses as these trainings are mandatory.”
Together, these efforts ensure that air cargo staff are equipped with the necessary skills, knowledge, and compliance standards to handle sensitive goods, operate safely, and contribute to the overall success of the organization.
Career Growth and Development Opportunities
The diverse career paths offered by GHA offices, TCE subsidiaries, and CargoTech companies are key to fostering long-term professional growth.
Arnaudin explains, “For example, an employee in Operations looking to shift to IT or digital roles can find opportunities with companies like Cargo Digital Factory, Wiremind Cargo, CargoAi, Rotate, and Aerios.”
Thominet highlights the company’s commitment to mentorship as a crucial element for career advancement and retention, “We are actively exploring mentorship programs as a central component of our approach to career advancement and retention within the air cargo industry. These programs are designed to pair experienced professionals with newer staff to provide guidance, share knowledge, and help navigate the complexities of the industry.”
Mentorship, according to Thominet, plays a key role in fostering a sense of belonging and personal growth, which is essential for long-term employee retention, “Mentorship plays a crucial role in fostering a sense of belonging and personal growth, which is essential for long-term retention.”
These combined efforts ensure employees are not only equipped with the skills they need to succeed but are also supported in their personal and professional growth, creating a pathway to long-term success and job satisfaction within the air cargo industry.
Gender Equality in Training and Recruitment
At ECS Group, the belief in gender equality goes beyond fairness—it’s recognized as a vital driver of innovation and business performance.
As Thominet explains, “At ECS Group, with our global presence, we believe that gender equality is not only a matter of fairness but also a key driver of innovation and performance. We are committed to providing equal opportunities and resources to all candidates, regardless of gender, by fostering a truly diverse and inclusive environment.”
By ensuring unbiased recruitment processes and making training programs accessible to everyone, ECS Group creates an environment where contributions are valued based on merit and potential, not gender.
Thominet further adds, “By ensuring that our recruitment processes are unbiased, and our training programs are accessible to everyone, we create a workplace where contributions are valued based on merit and potential, rather than gender.”
This inclusive approach not only enhances ECS Group’s talent pool but strengthens its capacity to serve a diverse and global market.
“Promoting gender equality is integral to our mission of building a workforce that reflects the world we operate in,” concludes Thominet, reaffirming the organization’s commitment to gender equality as a cornerstone of its continued success.
Four stalwarts in the air cargo industry—Adrien Thominet, Executive Chairman of ECS Group; Cedric Millet, President of CargoTech and the company’s Head of Strategy, Michael Teoh, and; Simon Watson, Founder & CEO of Aerios—talk to Air Cargo Update, painting a vivid picture of the sector’s future—one driven by collaboration, data-centric strategies, and a commitment to addressing global logistics challenges with innovation.
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The air cargo industry, a cornerstone of global trade, is undergoing a dynamic transformation, with digitalization taking center stage.
At the forefront of this evolution are Adrien Thominet, Executive Chairman of ECS Group; Cedric Millet, President, and Michael Teoh, Head of Strategy at CargoTech; and Simon Watson, Founder & CEO of Aerios—each with their own unique contributions to this digital wave. Together, they are redefining traditional practices, leveraging technology to streamline operations, and meeting the evolving demands of a digital-first world.
Thominet highlights ECS Group’s strides in integrating advanced digital solutions into the general sales agent (GSA) model, aiming to enhance end-to-end supply chain efficiency. Millet and Teoh shed light on CargoTech’s collaborative innovations, from AI-driven revenue optimization to tools that unify diverse air cargo needs.
Meanwhile, Watson of Aerios introduces cutting-edge software tailored for charter operations, digitizing processes and unlocking untapped market potential.
As these leaders share insights, they collectively paint a vivid picture of the air cargo industry’s future—one driven by collaboration, data-centric strategies, and a commitment to addressing global logistics challenges with innovation.
ECS Group: Driving Innovation in Air Cargo
ECS Group is revolutionizing the traditional General Sales Agent (GSA) model through digital transformation and operational innovation.
Thominet highlighted the recent leadership restructuring within ECS Group, including the appointment of Jean Ceccaldi as CEO. This strategic change is designed to infuse fresh perspectives into the company’s well-established operations.
One of the standout innovations is the integration of digital GSA solutions, reducing dependence on human resources while enhancing efficiency. By leveraging AI and data analytics, ECS Group has developed tools to streamline processes like forecasting, overbooking, and dynamic pricing adjustments. These advancements enable clients to optimize revenue in markets facing yield pressures, particularly in the Americas.
He also underscored ECS Group’s efforts to bridge the gap between market capacity and demand, especially in regions like Asia and Africa, which are showing robust growth potential.
CargoTech’s Modular Solutions
CargoTech’s strategic investments in modular solutions are a game-changer for the air cargo industry. Millet explained how the group is fostering innovation across its portfolio, including tools for revenue optimization, data management, and end-to-end value chain solutions.
Teoh elaborated on the use of AI in overbooking management and capacity forecasting. For example, their Sales Cockpit tool simplifies complex decision-making by delivering actionable insights based on real-time data. “We aim to address not just operational challenges but also create a seamless digital ecosystem for the industry,” he emphasized.
CargoTech’s collaborative approach sets it apart, integrating technologies with industry-specific expertise to develop solutions tailored to stakeholders like airlines, freight forwarders, and ground handlers.
Aerios: Revolutionizing the charter market
Aerios brings a unique focus on the charter market within air cargo, a segment often overshadowed by scheduled freight.
Watson introduced their carrier application, a tool that digitizes traditionally manual processes like charter requests and quotations. This innovation not only improves efficiency but also unlocks valuable data previously untapped.
He further highlighted the US market as a hub for digital adoption, where Aerios has seen significant traction. “Digitizing data is our first step toward applying AI to optimize operations,” he remarked, emphasizing their readiness to lead the charter segment into the digital age.
Regional Market Dynamics
The US market, according to Thominet, remains stable but not without challenges. Yield pressures persist due to an imbalance between capacity and demand. In contrast, Asia, particularly India, is a growth leader, while Africa’s emerging markets present exciting opportunities.
He noted the Americas’ gradual stabilization, especially in South America, where capacity adjustments have balanced the market. He also acknowledged Canada’s consistent performance, despite revenue pressures driven by overcapacity.
CargoTech’s market strategy leverages regional talent pools and digital readiness. Millet emphasized the role of Southeast Asia in providing cost-effective, high-quality software development, with Kuala Lumpur emerging as a critical hub for data management and development.
Teoh identified the US and Latin America as regions ripe for digital transformation. He pointed out how the pandemic accelerated digital adoption in Latin America, where carriers like LATAM are now embracing advanced tools to optimize yields and streamline operations.
Watson highlighted Aerios’ strategic focus on the North American charter market. He noted how disruptions like US port strikes have increased demand for charters, particularly for perishables in Latin America. The company is actively positioning itself to capitalize on these trends while expanding its footprint into the South American market.
Challenges and Opportunities in Digital Transformation
ECS Group is tackling the challenges of aligning rapid market expansion with digital transformation. Thominet explained how AI-driven tools have improved productivity by 20%, even in stagnant markets. However, aligning increased capacity with demand remains a key challenge, particularly with partners like Air India.
Digital transformation in air cargo is as much about change management as it is about technology. Millet and Teoh highlighted the industry’s need for clarity in defining digital goals. “Adoption is more intuitive for airlines but challenging for their customers, like freight forwarders,” Millet noted.
Their modular solutions, such as the Flitter Network for strategic fleet decisions, showcase how CargoTech bridges the gap between traditional operations and modern digital requirements.
For Aerios, digitization begins with data. Watson described their efforts to digitize charter-specific data trapped in emails and calls, setting the stage for AI applications. Their upcoming requestor application will further integrate airlines and brokers, enhancing collaboration in the charter ecosystem.
Innovations in Technology and AI
ECS Group’s focus on AI and digitalization is transforming its approach to cargo handling and operational efficiency. Thominet discussed how tools like dynamic pricing and overbooking management are helping clients adapt to market demands while optimizing revenue.
These AI-driven solutions have already shown measurable results, with productivity improving by 20% despite steady cargo volumes. ECS is also leveraging data analytics to support rapid market expansion and improve decision-making, particularly in high-growth regions like Asia.
CargoTech is at the forefront of leveraging AI for operational and strategic advantages. Millet elaborated on how tools like Wiremind’s revenue optimization suite and Rotate’s trade database are reshaping the industry. “We’re focusing on addressing universal challenges with modular solutions that cater to diverse stakeholders,” he explained.
Teoh emphasized the role of AI in transforming raw data into actionable insights. For instance, their Sales Cockpit tool simplifies complex analysis for sales teams, while overbooking management systems use machine learning to predict trends and optimize capacity.
Watson highlighted how Aerios is paving the way for AI adoption in the charter market. By digitizing critical charter data, Aerios is creating a foundation for applying AI and machine learning to streamline operations. Watson mentioned that AI-driven tools, such as automated shift handover summaries, are already in testing, promising significant time savings and efficiency gains.
Enhancing Customer Experience
Thominet stressed that enhancing customer satisfaction in the air cargo industry requires a blend of innovation and collaboration. ECS Group has introduced digital GSA solutions that reduce dependency on human resources while improving service reliability.
Additionally, their focus on seamless integration of digital tools ensures that clients can easily adapt to evolving supply chain complexities. By collaborating with airport infrastructure and logistics partners, ECS Group guarantees efficient operations, especially in key hubs like Miami, a gateway to Central and South America.
For CargoTech, customer satisfaction begins with understanding market pain points. Millet explained how their solutions address challenges like e-commerce-driven demand and supply chain complexities. “We’re not offering standalone solutions; we’re co-developing tools that directly address customer needs,” he noted.
Teoh highlighted CargoTech’s API-native approach, which allows seamless integration with existing systems. This ensures that their tools, like capacity forecasting and revenue management, align with the operational workflows of airlines, freight forwarders, and ground handlers.
Watson emphasized Aerios’ commitment to improving customer experiences, particularly in the charter segment. Their carrier application reduces quotation processing times by 40%, enabling airlines to handle more requests without increasing team sizes.
Additionally, their upcoming requestor application aims to connect brokers and carriers through a unified platform, streamlining communication and data sharing to meet rising e-commerce demands effectively.
Market Trends and Future Outlook
Thominet identified several emerging trends shaping the air cargo industry, including increased connectivity between North and South America and the growing prominence of Asia and Africa. He highlighted how ECS Group is building synergies across regions to optimize operations and capitalize on market opportunities.
The Middle East is also a key focus area, with operations in Dubai experiencing double-digit growth. Thominet views the region as a critical transit hub between Asia and America, underscoring its strategic importance.
Cedric and Michael pointed to the rising importance of partnerships in the air cargo industry, particularly in regions like Latin America and the Middle East. Michael further added, “As airlines face challenges like delivery delays from aircraft manufacturers, collaboration becomes essential for optimizing capacity.”
They also discussed the industry’s gradual shift toward real-time operations and dynamic pricing. However, they cautioned that achieving this requires foundational digitalization and change management to align organizational workflows with modern technologies.
Watson noted the growing demand for data-driven insights in the charter market. He explained how Aerios is positioning itself to provide carriers with the information needed to make strategic decisions, such as reallocating aircraft for charter services.
The Middle East and Africa represent untapped potential for Aerios. However, Watson observed that these markets are still evolving in their digital maturity, with carriers hesitant to adopt new technologies until others in the region take the lead.
Strategic Partnerships and Ecosystem Collaboration
Thominet highlighted the importance of long-standing partnerships with airport infrastructure and logistics providers, which are integral to ECS Group’s operational efficiency. Key collaborations in hubs like Miami and Dubai enable the company to navigate the complexities of supply chain management across regions.
ECS Group also works closely with airlines to align their expanded capacities with market demand. By leveraging digital tools and marketplaces, they create tailored solutions that address specific operational challenges.
CargoTech’s success lies in its ability to foster strategic partnerships across the air cargo ecosystem. Millet emphasized that CargoTech’s modular approach allows airlines to choose specific solutions tailored to their unique needs. “We’re not building isolated technologies; our tools are designed to integrate seamlessly with existing systems and workflows,” he noted.
Teoh elaborated on the role of collaboration in driving innovation, citing partnerships with carriers and ground handlers to co-develop solutions like Rotate’s trade database and Wiremind’s revenue optimization tools. CargoTech’s focus on shared benefits ensures that partnerships create exponential value rather than just additive improvements.
Aerios is actively building partnerships to enhance the charter segment’s efficiency. Simon shared insights into their ongoing discussions with ground handlers and airports, exploring ways to integrate their capabilities into Aerios’ platform.
Their collaborative approach extends to CargoTech’s ecosystem, where they share data and insights with portfolio companies like Cargo AI and Rotate. “Partnerships are key to unlocking the full potential of the charter and air freight markets,” Watson emphasized.
Evolving Roles of Data and AI in Decision-Making
Thominet explained how ECS Group uses data and AI insights to address challenges like yield pressures and capacity-demand mismatches. Their tools enable airlines to analyze historical data, predict market trends, and optimize operations, even in saturated markets like the Americas.
He shared an example of how data-driven strategies have helped ECS Group achieve better revenue outcomes with consistent cargo volumes. “AI is not just about automation; it’s about enabling smarter, faster decisions,” Thominet said.
For CargoTech, data and AI are central to their value proposition. Millet discussed the role of AI in enhancing decision-making processes, such as capacity forecasting and overbooking management. “We’re transforming raw data into actionable insights, empowering users to make better decisions,” he explained.
Teoh highlighted how AI-driven tools like Sales Cockpit streamline workflows, allowing sales teams to focus on execution rather than data analysis. Their emphasis on real-time data and predictive analytics ensures that CargoTech’s solutions remain relevant in a fast-paced industry.
Watson emphasized that digitizing charter-specific data is the first step toward applying AI in the charter market. Aerios’ carrier application is already capturing unique data sets, paving the way for AI-driven innovations like automated shift handover summaries.
“AI will play a significant role in optimizing charter operations, but it starts with having the right data,” he noted. He further expressed confidence that Aerios is well-positioned to lead this transformation in the charter segment.
Overcoming Industry Challenges
Thominet identified key challenges, including managing the rapid expansion of airline partners like Air India and addressing yield pressures in mature markets. He explained how ECS Group uses digital solutions to bridge the gap between capacity growth and market demand, ensuring sustainable operations.
The company’s investment in emerging markets like Africa and Asia also reflects its proactive approach to overcoming regional disparities in growth and revenue generation.
CargoTech faces the dual challenge of driving digital adoption and managing change across diverse stakeholders. Cedric acknowledged that while airlines are more open to digital transformation, freight forwarders and ground handlers often struggle with the transition.
Teoh added that the pandemic accelerated the industry’s focus on digitalization, but sustaining this momentum requires clear goals and effective change management. Their solutions, designed to address specific pain points, help mitigate resistance to digital adoption.
For Aerios, the primary challenge lies in overcoming market hesitations toward digitalization in regions like the Middle East and Africa. Watson noted that carriers often wait for others to adopt new tools before committing themselves, which slows industry progress.
By demonstrating the tangible benefits of their solutions, such as improved efficiency and reduced processing times, Aerios aims to build confidence among hesitant stakeholders.
Brink of Revolutionary Transformation
The air cargo industry stands at the brink of a revolutionary transformation, led by visionary leaders. Whether it’s ECS Group’s digital GSA solutions, CargoTech’s ecosystem of AI-powered tools, or Aerios’ focus on the charter market, the common thread is the industry’s embrace of digital transformation.
As they continue to adapt, innovate, and collaborate, these leaders are not just navigating the future—they’re shaping it.
Each insight shared highlights the industry’s shift toward enhanced efficiency, collaboration, and customer-centric approaches, all powered by cutting-edge technology.
As we navigate the complexities of global trade, the integration of AI and data analytics emerges as the key to unlocking unprecedented growth and operational harmony. Challenges remain, particularly around digital adoption and aligning capacity with demand. Yet, the shared determination to overcome these hurdles through strategic partnerships and targeted innovation gives the sector an optimistic outlook.
Ultimately, this digital wave isn’t just about improving processes—it’s about setting new standards for connectivity, resilience, and adaptability. The journey of “Air Cargo 4.0” is only beginning, and as these leaders have shown, the industry is well-prepared to rise to the occasion. The future of logistics is here, and it’s more connected, efficient, and innovative than ever before.
The annual losses of approximately $35 billion in pharmaceuticals across all modes of transport, including air cargo, highlight several “blind spots” in the supply chain that need urgent attention, states the Vice President of Kales Group, Adam Gunnarsson, who is calling for collaborative effort to address them.
In an email interview with Air Cargo Update, Gunnarsson said there are key areas of concern specific to air cargo and they include – Temperature deviations and cold chain breaks; Lack of data transparency and visibility; Human error and training gaps; Customs delays and regulatory bottlenecks; Infrastructure limitations at airports and Security risks and theft.
He is of the view that unless collaborative efforts across the entire air cargo supply chain, from airports and airlines to regulators and logistics providers, the ‘blind spots’ will continue to impact operations. “I’m improving cold chain management, enhancing data visibility, providing training, and upgrading infrastructure will help reduce losses and improve the efficiency of pharmaceutical transport by air.”
CEIV certifications
Airlines, he mentions, continue to invest in specialized handling facilities, with many adopting (IATA) CEIV certifications to ensure quality control and compliance with pharmaceutical standards.
The air cargo industry is actively preparing for growth by implementing several strategic initiatives across infrastructure, technology, and operational enhancements. These preparations reflect both the recovery from pandemic-driven disruptions and the anticipated rise in pharmaceutical, e-commerce, and perishables transport.
The key strategies to improve pharma supply chain, he notes are Cold chain infrastructure enhancements; Digitalization and automation; Fleet modernization and sustainability initiatives and Training and certification initiatives.
The pharmaceutical air cargo sector faces several challenges that impact the efficiency and reliability of exports, points out Gunnarsson. These issues range from capacity constraints to regulatory complexities, and they directly affect the timely delivery of sensitive medicines and vaccines.
The main challenges impacting the sector are strict temperature control requirements; Regulatory compliance and certification challenges; lnfrastructure Limitations in emerging markets; and Supply chain volatility and geopolitical Issues.
Infrastructure challenges in emerging markets
Agreeing that challenges in pharma air cargo are region or country-specific, particularly related to infrastructure limitations, regulatory frameworks, geopolitical factors, and market-specific dynamics.
There are some examples and efforts being taken to overcome issues such as Infrastructure challenges in emerging markets (Africa, Latin America, Southeast Asia); Regulatory differences in Europe and the US; Geopolitical instability in Eastern Europe and the Middle East; and Environmental and sustainability regulations in Europe.
“Pharma air cargo challenges are highly region-specific, influenced by infrastructure, regulations, geopolitical tensions, and sustainability mandates. To address these issues, the industry is focusing on building pharma corridors, obtaining multiple certifications, expanding cargo networks, and collaborating with governments and private partners. These efforts aim to ensure that the growing demand for pharmaceutical exports is met efficiently despite regional hurdles.”
Agreeing that there is growing recognition that existing standard operating procedures (SOPs) in transshipment of pharmaceuticals are inadequate in some areas, he said, “While frameworks like IATA’s CEIV Pharma program have raised industry standards, inconsistencies in SOP implementation across regions and logistics players continue to pose challenges.
He also pointed out some concerns such as inconsistent implementation of SOPs across Regions; Inadequate tracking and visibility during transshipment; Limited coordination between stakeholders and Gaps in SOPs for contingency planning.
On-tarmac transportation the weakest link
‘Airport on-tarmac transportation is the weakest link’ in the pharma supply chain, Gunnarsson pointed out the risks involved in moving pharmaceutical shipments between warehouses, aircraft, and storage areas.
The primary challenges arise from exposure to external environmental factors, improper handling, and the lack of specialized equipment.
Giving a breakdown of the issues and solutions to mitigate the risks, Gunnarsson suggests dealing with delays in loading and unloading; introducing specialized handling equipment; training; and IATA CEIV pharma certification.
“The on-tarmac segment remains a critical vulnerability in the air pharma supply chain because of temperature sensitivity, handling risks, and operational delays. However, many airports and logistics providers are investing in specialized equipment, training, and certification programs to mitigate these challenges. As the demand for pharmaceutical air transport grows, addressing these weak points will be essential to ensuring product integrity and reducing losses,” he said.
The gaps, he mentions, are due to inconsistent infrastructure across airports: Limited real-time visibility and monitoring; Inefficient ground handling processes; Regulatory delays; and Limited temperature-controlled transport equipment, but opportunities are galore.
Digitalization improving
“The adoption rate of digital technologies in the air pharma supply chain is steadily increasing, but it varies across regions and stakeholders (airlines, ground handlers, airports, and logistics companies). The COVID-19 pandemic accelerated the push for digitalization as the need for real-time tracking, transparency, and efficiency in handling temperature-sensitive pharmaceuticals became more apparent. However, full adoption remains uneven due to factors such as costs, regulatory complexity, and the varying readiness of different actors in the supply chain,” Gunnarsson noted.
Three key tech trends that can significantly enhance the air pharma supply chain are Internet of Things (IoT) and Real-Time Monitoring; Blockchain for transparency and security; and artificial intelligence (AI) and predictive analytics, he states and commends the IATA CEIV Pharma program represents a significant step forward in establishing a consistent global standard for pharmaceutical logistics in the air cargo industry.
“While it has been widely adopted among major air cargo hubs and key logistics providers, it has not achieved universal uptake. To promote broader adoption, industry stakeholders can focus on education about CEIV Pharma’s benefits, regional partnerships to ease certification costs, and supporting infrastructure improvements in emerging markets. This would help build a more resilient and globally standardized air pharma supply chain,” said Gunnarsson.
“While CEIV Pharma is widely recognized, the air pharma supply chain has not fully adopted it across all regions and facilities, due to high certification costs; Complex Certification process; Regional disparities’ Alternatives and Overlapping Certifications; and lack of awareness or immediate demand,” he added.
Underlying the importance of training and certification programs are fundamental to operate a reliable and competitive air pharma facility. “They equip staff with the skills needed to meet regulatory demands, protect cold chain integrity, and adopt new innovations in the air pharma supply chain. Ultimately, they ensure that pharmaceutical products are handled with the utmost care and efficiency, building a trustworthy reputation and fostering client confidence,” said Gunnarsson.
Praising the efforts of Pharma.Aero, Gunnarsson suggests to strengthen it by expanding the CEIV Pharma certification to emerging markets; Drive digital transformation with a unified data-sharing platform; Increase emphasis on sustainability Initiatives; and Implement predictive analytics and AI-driven Insights.
Michael Zach, SVP at Flughafen Wien AG, and David Canavan, COO of Challenge Group, share their perspectives on the vital role temperature plays in the safe storage and transportation of pharmaceuticals, especially vaccines and medicines.
By Ayesha Rashid
In the pharmaceutical world, temperature is impacting every stage of drug development and production. And when it comes to transporting them domestically or across continents, having the right temperature is equally important.
Pharmaceutical and life sciences products, which include vaccines and medicines, are highly sensitive to temperature fluctuations. Maintaining strict temperature control during storage and transportation is essential to prevent degradation and loss of efficacy.
Temperature-controlled supply chains are necessary to ensure that products reach their destination in optimal condition. This involves using specialized packaging, transportation vehicles, and monitoring systems.
In an interview with Air Cargo Update, Michael Zach, Senior Vice President of Ground Handling & Cargo Operations at Flughafen Wien AG, and David Canavan, Chief Operating Officer of Challenge Group, shared their insights on the critical role of temperature control in pharma and vaccine transportation.
They emphasized how even slight temperature fluctuations can affect the potency and stability of these sensitive products, making careful monitoring essential.
Pharmaceutical/Vaccines Logistics
Pharmaceutical logistics’ involve the procurement, storage, transportation and distribution of medications and related healthcare products while ensuring their integrity, safety and regulatory compliance.
Additionally, it also addresses challenges, such as cold chain management, timely delivery, inventory control, and adherence to Good Distribution Practices (GDP).
The global pharmaceutical logistics market size was valued at USD $92.18 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 9.3% from 2024 to 2030.
The short-term impact of the COVID-19 pandemic on the market is a crucial factor for the fast-paced growth of pharmaceutical logistics.
As such, the trade of conventional medicines is increasing from country-to-country (Grand View Research).
According to Mordor Intelligence, the Vaccine Logistics Market size is estimated at USD 3.13 billion in 2024, and is expected to reach USD 4.04 billion by 2029, growing at a CAGR of 5.20% during the forecast period (2024-2029).
The wide variety of new vaccines and immunization schedules and service delivery strategies, the expanding target population, the increased cold-chain infrastructure requirements, and insufficient funding are some of the new realities that may further impact the vaccine transportation market.
Due to the enormous rise in demand for vaccine storage services brought on by the COVID-19 epidemic, pharmaceutical companies focused their efforts on creating cold chain logistics.
Therefore, the vaccine cold chain logistics market will probably see new growth prospects in the coming years due to the increasing R&D initiatives.
Regulatory Guidelines and Standards
To safely transport pharmaceuticals and vaccines, it’s crucial to follow regulatory guidelines.
Key organizations like the World Health Organization (WHO), International Air Transport Association (IATA), and U.S. Food and Drug Administration (FDA) set these rules.
For example, the WHO’s guidelines focus on how vaccines should be packaged, stored, and handled, with strict temperature monitoring.
Transporting pharmaceuticals via air faces challenges and offers opportunities in the cold chain.
The pharmaceutical industry depends on air transport for speed and reliability.
However, aviation often struggles to meet the high standards required, like expertise, infrastructure, and regulation compliance.
To address this, IATA created CEIV Pharma, a certification that helps the air cargo industry improve safety, security, and efficiency in pharmaceutical handling.
It ensures consistent, high-quality standards across the supply chain.
The FDA also provides guidance on maintaining proper temperature during transportation to protect product quality.
Challenge Group’s COO, David Canavan said, “We adhere to the IATA CEIV Pharma regulations, which provide a comprehensive framework for ensuring the safe and secure transportation of high-value pharmaceuticals and vaccines. Additionally, we implement more stringent procedures as required by specific customers.
“These protocols include rigorous temperature control, advanced tracking systems, specialized packaging, and continuous monitoring throughout the entire logistics chain. Our commitment to these standards ensures that we maintain the highest levels of safety, security, and compliance in handling sensitive pharmaceutical shipments.”
Flughafen Wien AG’s SVP Michael Zach said, “Vienna Airport follows all relevant international guidelines from Good Distribution Practice (GDP), IATA, and airlines to ensure the safe and secure handling of high-value pharmaceuticals and vaccines. Vienna Airport’s Standard Operational Procedures (SOP) has been made based on these guidelines, plus each customers’ requirements. These SOPs are regularly updated based on feedback and new regulatory requirements.
“To maintain high standards, Vienna Airport conducts regular audits and compliance checks of its pharma handling processes. These checks ensure that all protocols are followed, and that the airport remains compliant with international regulations and standards.”
Pharma and Vaccine Temperatures
| Product Type | Temperature Range |
| Vaccines | +2°C to +8°C |
| Biologics | +2°C to +25°C |
| Cold Chain Products | -20°C to -50°C |
| Ambient Products | +15°C to +30°C |
| Temperature Protocol | Impact on Product Quality |
| Refrigeration (2°C – 8°C) | Maintenance of vaccine potency and stability. |
| Cryogenic storage (-20°C to -80°C) | Preservation of sensitive biological materials. |
| Ambient storage (15°C – 30°C) | Optimal conditions for certain pharmaceuticals and vaccines. |
Canavan states, “We transport a wide range of pharmaceuticals and vaccines that require temperature control within a range of -20°C to +25°C.
“On average, 70% to 80% of pharmaceuticals and vaccines which we carry require transportation within a temperature range of +2°C to +25°C. For context, we utilized approximately 400 special containers for these shipments in the first half of this year, underscoring our capability to manage and maintain the required temperature ranges effectively.”
With over 40 years of experience in the industry, Challenge Group has developed the expertise to handle these diverse products effectively.
Their specialized global team is well-versed in managing the unique requirements of these shipments, ensuring their integrity and safety throughout the transportation process.
Ensuring Cold Chain Integrity
| Aspect | Impact on Product Integrity |
| Temperature fluctuations | Potential degradation or denaturation of active ingredients. |
| Inconsistent storage conditions | Variable product performance and reduced shelf life. |
| Uncontrolled shipping environments | Risk of contamination, spoilage, or damage during transport. |
Canavan said, “We maintain the necessary temperature controls for temperature-sensitive pharmaceuticals and vaccines by utilizing dedicated pharma trucks for the first and last mile of transportation and delivery.
“Additionally, all pharma shipments are stored in specially designated temperature-controlled cool rooms with a 24/7 monitoring system at any of our facilities, ensuring consistent conditions. Inside the aircraft, we can set and monitor the temperature within a range of +2°C to +25°C, ensuring the integrity of the pharmaceuticals and vaccines throughout the entire journey.”
Zach explained, “The GDP-certified Vienna Airport Pharma Handling Center (VPHC) offers dedicated facilities for temperature-sensitive goods like pharmaceuticals and biotech products. It includes two large cooling warehouses: one for 2-8°C with 150 square meters, and another for 15-25°C with 1,600 square meters. A direct airside-to-landside connection ensures fast processes.
“We use mobile refrigeration equipment, such as cool trailers and thermos blankets, to safely transport goods between areas. With four cool trailers ranging from -20°C to +29°C, temperature control is maintained throughout. The VPHC also uses temperature sensors and CCTV for continuous monitoring.”
Challenges Faced
According to Challenge Group, airlines face key challenges in transporting high-value pharmaceuticals, including maintaining proper temperature, ensuring security, and managing communication effectively.
To tackle these, Challenge Group implements several measures:
According to Flughafen Wien AG, handling and storing high-value pharmaceuticals at airports present several significant challenges, given the sensitive nature of these products.
These challenges range from maintaining strict temperature controls to ensuring security and regulatory compliance.
Zach further said that this kind of handling is ensured with their well-equipped warehouse (VPHC) and well-trained, dedicated pharma staff.
Pharma-Vaccine Handling Collaboration
All parties involved in the transportation of pharmaceuticals and vaccines must work together to ensure the integrity of these sensitive products.
This collaboration is necessary to maintaining the required temperature ranges during transportation, as it involves multiple stakeholders, including manufacturers, logistics providers, and regulatory bodies.
Canavan explained, “We collaborate closely with pharmaceutical companies and freight forwarders to ensure the safe handling and timely delivery of pharmaceuticals and vaccines by sharing all relevant information well in advance. This allows us to properly plan the booking, pick-up, delivery, handling instructions, storage, and loading.
“We also arrange for special equipment whenever needed to meet specific requirements. Additionally, we actively participate in major pharma events and conferences to stay updated on the latest technologies and best practices in the industry. This proactive approach ensures seamless coordination and adherence to the highest standards in the transportation of pharmaceutical products.”
According to Zach, “First of all, we set the procedure with each customer and direct and constant communication channels to act in real time base. Our customers appreciate the direct, customer-oriented and professional contact with our staff.”
Specialized Pharma Transport Gear
The Challenge Group uses a wide array of specialized equipment to transport pharmaceuticals and vaccines.
This includes various types of special containers sourced through agreements with leading industry manufacturers and suppliers.
“Our equipment portfolio features Envirotainer, and Challenge Handling in Liege is a certified recharging station. We also utilize Softbox, Tower, SkyCell, CSafe, and Va-Q-Tec containers along with thermal blankets. All these are designed to maintain the required temperature range between -20°C and +25°C, ensuring the safe and secure transport of temperature-sensitive pharmaceuticals and vaccines,” Canavan said.
Training for Pharma Logistics
Canavan notes that Challenge Group’s staff receive extensive training to handle high-value pharmaceuticals and vaccines.
This includes IATA CEIV Pharma certification and specialized training in handling, loading, dry ice management, build-up, and storage.
“Compliance with these protocols is ensured through continuous education, regular audits, and strict adherence to established procedures. This rigorous training and monitoring process ensures that the team is well-equipped to manage the complexities of transporting sensitive pharmaceutical shipments securely and efficiently on a global scale.”
Zach states, “Our staff receives the Pharma Standard Operational Procedures training, which is a four-week dual training course with classroom training and lots of practice in our proven buddy system, completed with a certificate upon successful completion of the exam.”
Theft and Tampering Prevention
To prevent theft or tampering during the transportation of high-value pharmaceuticals and vaccines, Challenge Group implements several measures:
Flughafen Wien AG’s Zach stated that access to the warehouse is restricted to authorized personnel only.
Additionally, CCTV has been installed in all VPHC areas.
Furthermore, they have implemented a “if you see something – say something” culture, which helps maintain professionalism and customer focus at the highest level.
Technological Breakthroughs
The Abu Dhabi-based cargo carrier achieves a 99.7% pharma compliance rate to reduce losses, ensuring safe delivery of pharma products. It’s hub in the UAE capital has unique tunnel that connects passenger terminal to cargo terminal, reducing transit time to as little as 30 minutes. Tunnel also provides protection from external elements such as heat and sunlight, crucial for maintaining the integrity of pharma and perishable products.
By R. Chandrakanth
The COVID-19 pandemic was indeed a Black Swan event which left millions of lives shattered and economies destroyed. The magnitude of the disruption was humongous. No sector was spared. With supply chain disruption, global trade almost came to a standstill. But two sectors – pharmaceuticals and logistics – standout in reinventing themselves during those trying times.
The learnings from that time have come good. It’s almost four years since the pandemic and we see both the pharmaceutical sector and the logistics industry (air cargo, in particular) having evolved, in an accelerated mode.
It is not that the challenges have disappeared. There are always fresh ones that crop up, testing the stakeholders in the entire value system and there are logistics players who are well ahead of the curve, having understood what the challenges are.
Etihad Cargo is one of them. Its special products, PharmaLife in particular, is exceptional as the airline takes the transportation of pharmaceuticals very seriously. It was the first carrier in the Middle East to be awarded IATA’s Center of Excellence for Independent Validators (CEIV) certification in Pharmaceutical Logistics. Using specially-designed, temperature-controlled equipment, Etihad ships pharmaceuticals in the quickest possible time, adhering to the highest compliance guidelines.
But the pharma-air cargo linkages are not without challenges, sometimes impacting exports. The Manager of Global Cool Chain Products, Etihad Cargo, Fabrice Panza, states that Pharma-air cargo faces challenges primarily due to the high value and time- and temperature-sensitive nature of pharmaceutical products.
Different types of pharma goods, including active pharmaceutical ingredients (APIs), medical devices, and vaccines, each have distinct requirements, necessitating customized solutions involving specialized packaging, such as passive, hybrid, and active containers, to ensure consistent temperature control.
“The industry has shifted over the past decade, with a growing need for shipments to be maintained at 15-25°C, now accounting for about 60-70% of Etihad Cargo’s shipments, compared to the 2-8°C range that dominated in the past. Etihad Cargo addresses these evolving demands with its young fleet, equipped with temperature-controlled technology capable of accommodating both temperature ranges on the same aircraft. Additionally, we collaborate with compliant ground handling agents and employ cool dollies for tarmac transfers, ensuring seamless temperature regulation and safeguarding the integrity of pharmaceutical exports,” Panza explains.
One of the biggest challenges for the pharma-air cargo players has been how to minimize pharma losses due to mishandling/improper equipment or storage. As per statistics, the losses are said to be as high as $35 billion, considering all modes of transport, air cargo being among the top.
Panza notes, “IATA statistics show that around 40-50% of vaccines are wasted, not only during air transportation but also in the first and last mile, where mishandling, improper equipment, and storage are common causes of loss. To address these blind spots, Etihad Cargo is committed to ensuring product integrity, demonstrated by our achievement of IATA CEIV Pharma certification, which involves breaking down and scrutinizing each step of the air cargo process. This certification helps make transportation fully transparent and controlled, reducing risks throughout the supply chain. By leveraging IoT technology for real-time monitoring and maintaining short lead times, Etihad Cargo minimizes temperature deviations and other vulnerabilities, achieving a 99.7% pharma compliance rate to reduce losses and ensure the safe delivery of pharmaceutical products.”
Etihad Cargo’s ‘PharmaLife’ pprioritizes ground handling and loading; ensures 60 minutes between the aircraft and the cooling facility, subject to local service level agreements; Temperature-controlled storage and cargo hold temperature devices in the aircraft; Dedicated pharmaceuticals customer service team working 24/7; Pre-cooled thermo blanket protection to and from the aircraft; Trained and experienced ground handling; and 22 Qualified Envirotainer Provider (QEP) stations and Global Master Lease Agreement with Envirotainer, CSafe Global, Dokasch, Va-Q-Tec and Skycell.
To further understand how Etihad addresses these challenges, Fabrice Panza, the Manager of Global Cool Chain Products, Etihad Cargo, gives insights in this interview, excerpts of which are below:
The weakest link in the air pharma supply chain is said to be ‘airport on-tarmac pharma transportation’, what is your take on that?
Any moment outside a temperature-controlled environment introduces risk. This is true at the airport, as well as during the first and last mile, where each handover point – with 15 to 25 such handover points from origin to destination – presents a potential vulnerability. At Etihad Cargo, we treat these Critical Control Points (CCPs) with utmost importance, implementing specific processes and mitigation measures to safeguard product integrity.
At our Abu Dhabi hub, we’ve strengthened this traditionally weak link by using state-of-the-art cool dollies to maintain temperature control during on-tarmac handling. Coupled with robust Standard Operating Procedures (SOPs) and proactive shipment tracking, we ensure each pharma shipment is meticulously managed. Additionally, thermal covers are available for extra protection, further bolstering on-tarmac transportation and converting it from a weak point to a strong link in the supply chain.
What is the adoption rate of digital technologies in air pharma supply chain? What benefits do you see in deploying digital technologies?
The adoption rate of digital technologies in the air pharma supply chain is growing rapidly, although it still has room for improvement. The pace has accelerated due to the widespread integration of IoT, not only in active and hybrid containers but also in smart packaging. While challenges remain, such as ensuring these technologies do not interfere with airline communication equipment, qualified solutions are increasingly providing end-to-end visibility. The key benefit of deploying digital technologies is improved data connectivity, enabling seamless integration of stakeholders—airlines, ground handlers, and freight forwarders—through APIs.
Unlike in the past, where data was passive and collected manually, real-time monitoring now allows for immediate issue detection and response, enhancing the speed and reliability of operations. Moreover, technologies like blockchain ensure data integrity, while AI-powered predictive management offers better quality forecasting and operational control. This results in leaner processes, reduced lead times, and increased sustainability by optimizing energy use and minimizing waste across the supply chain.
What three tech trends do you think can help enhance the air pharma supply chain?
The top three tech trends that can enhance the air pharma supply chain are Virtual Reality (VR) and Augmented Reality (AR), Artificial Intelligence (AI), and IoT-enabled robotics. VR and AR technologies can significantly improve handling accuracy by providing visual guidance for labelling and storage, reducing errors during the process. AI enhances predictive management, allowing for better forecasting and real-time decision-making to maintain product integrity. IoT-enabled robotics can automate repetitive tasks and provide seamless monitoring, ensuring precise temperature control and swift issue resolution. Together, these technologies streamline operations, enhance accuracy, and optimize the efficiency of the air pharma supply chain.
Tell us how important it is for Etihad – training/certification programs to enhance the air pharma supply chain at Etihad’s facility?
Training and certification programs, such as IATA CEIV Pharma, are essential to enhancing the air pharma supply chain at Etihad Cargo. While infrastructure, SOPs, and technology are crucial, the most critical element is the human factor—ensuring that everyone involved in handling pharma shipments is equipped with the right skills and awareness. Constant training helps establish a robust Quality Management System (QMS) that integrates sales, operations, and quality, providing not just the “how” but also the “why” behind procedures. This understanding is vital, as it instils a sense of purpose in our team, driving them to uphold the highest standards for the safe transport of pharmaceutical products. At Etihad Cargo, our PharmaLife program reflects this commitment, as we actively contribute to saving lives through meticulous training and adherence to best practices.
Which are the best airports in the world for pharmaceutical/cold chain logistics?
Zayed International Airport in Abu Dhabi stands out as one of the best airports in the world for pharmaceutical and cold chain logistics, thanks to its recent investments in a dedicated pharma hub that is fully IATA CEIV Pharma certified. Etihad Cargo’s Abu Dhabi hub features state-of-the-art cool dollies and a unique tunnel connecting the passenger terminal to the cargo terminal, which significantly enhances efficiency. This tunnel not only reduces transit time to as little as 30 minutes but also ensures shipments are shielded from external elements such as heat and sunlight, crucial for maintaining the integrity of pharmaceutical and perishable products.
What do you think of Pharma.Aero and your suggestions to help improve air pharma supply chain?
Pharma.Aero is a highly successful and respected community platform that has quickly established itself as the leading association for pharmaceutical logistics within a decade. Etihad Cargo has supported Pharma.Aero’s mission to share knowledge and improve industry standards since the beginning, co-founding the first Pharma Logistics Masterclass in Antwerp in 2021 during the pandemic, followed by the second in Abu Dhabi in 2022. The masterclass has since become an annual success, with increasing participation each year, demonstrating Pharma.Aero’s deep understanding of the industry’s needs. As I often say, if you implement just 10% of the insights gained from Pharma.Aero and its Pharma Logistics Masterclass, your organization will see remarkable improvements.
Doha, Qatar—Al-Futtaim Auto and Machinery Company (FAMCO) Qatar has successfully sold a large fleet of VOLVO FMX460 4×2 Heavy-Duty Tractor Head trucks to Al Nasr Holding (Venture Gulf Engineering), a leading business conglomerate in Qatar.
The 25 new VOLVO FMX460 4×2 trucks will join Al Nasr Holding’s existing fleet of 36 Volvo trucks, significantly enhancing their logistics capabilities.
The FMX460 model is renowned for its robust design and advanced safety features. These include a driver side airbag, roll-over protection, side collision avoidance support, forward collision warning, and a factory-fitted rear camera. Furthermore, the trucks are equipped with Volvo Connect for improved fuel efficiency, productivity, and environmental impact, along with an FM sleeper cab for driver comfort.
Venture Gulf Engineering, a subsidiary of Al Nasr Holding, is set to utilize these new trucks as part of their strategic expansion with new projects in Doha, Qatar. The expansion involves upgrading their logistics fleet to over 650 heavy vehicles to meet the growing demands and provide quicker service to clients in the city. The new location at Ras Laffan Support Service Area will bolster their service capabilities and support the company’s growth trajectory.
Innovations in Sensor Integration, SaaS, and AI Facilitate Cold Chain Telematics Market Growth to Exceed US$2.5 Billion by 2032
New York—Adoption of cold chain telematics solutions for refrigerated trucks and containers is set to grow extensively over the coming years across various verticals. This growth in adoption stems from technological innovations, leading to more advanced use cases that cater to efficient Cold Chain Management.
According to global technology intelligence firm ABI Research, global cold chain telematics revenues are expected to surpass US$2.5 billion in 2032. These revenues will consist of hardware sales as well as recurring monthly Software-as-a-Service (SaaS) revenues. Software services, combined with hardware, can enable real-time monitoring of metrics such as ambient temperature and humidity monitoring of refrigerated trucks and/or containers during travel and transit.
“Innovations in cold chain telematics have revolutionized the supply chain landscape by providing real-time monitoring and enhanced data analytics. This has led to increased adoptions in the food and beverage, chemical, and pharmaceutical industries as supply chains look to ensure product integrity and adhere to regulatory compliance. The capability to track temperature, humidity, and location throughout the supply chain reduces spoilage and boosts customer confidence in product quality,” explains Adhish Luitel, Supply Chain Management & Logistics Principal Analyst at ABI Research.
Integrating sensors within refrigerated transport units such as trucks and containers has also been a major enabler in increased adoption. The enhanced monitoring capabilities have improved supply chain visibility across various verticals where cold chain monitoring is crucial. Some key telematics vendors in this space include Samsara, Sensitech, Geotab, Verizon Connect, Powerfleet, Motive, Orbcomm, and Cooltrax.
“The future outlook of the adoption of cold chain telematics solutions looks very promising, with continuous advancements expected to further precision and efficiency, enabling more use cases. As technology improves, we can anticipate a much wider integration of AI and IoT applications. This can build smarter and more proactive cold chain systems that could preemptively address potential issues,” concludes Luitel.
These findings are from ABI Research’s Cold Chain Monitoring market data report. This report is part of the company’s Supply Chain Management & Logistics research service, which includes research, data, and analyst insights. Based on extensive primary interviews, Market Data reports present an in-depth analysis of key market trends and factors for a specific technology.
“Our experts live and breathe ULD management, and we have the suitable digital solutions to meet even highest customer requirements with our services at all times and offer significant added value. We want to growth further on the path we have embarked on in the long term and, with an openness to innovation, continue to convince with leading services in the future.” – Dr. Jan-Wilhelm Breithaupt, Jettainer CEO
In just about two decades time, Jettainer, a wholly owned subsidiary of Lufthansa Cargo AG, has emerged as a global leader operating one of the world’s most efficient unit load devices fleet.
It has over 100,000 ULDs in 500 locations worldwide and is constantly enhancing its operations to meet the challenging demands of the air cargo sector, whether it is handling dangerous goods, live animals, pharma and what-have-you?
Jettainer is truly an industry leader, deploying a unique combination of dedicated teams and leading IT solutions, big data and artificial intelligence.
The CEO of Jettainer, Dr. Jan-Wilhelm Breithaupt, who is new to the company but has known the business from a customer perspective for many years as an experienced airfreight expert gives Air Cargo Update an in-depth insight in this Q&A into what Jettainer is doing to stay ahead of the competition.
Dr. Jan-Wilhelm Breithaupt holds a doctorate in production logistics and has been driving industry-wide digital transformation projects and process improvement initiatives for more than 20 years. He held various positions within the Lufthansa Group and was most recently responsible for global customer service and handling management at Lufthansa Cargo before taking on the role as Jettainer CEO. Here’s our interview.
With encouraging growth of global air cargo in 2024, how is the ULD segment coping with this demand?
The aviation industry is on the rise, and with it the need for ULDs and their management. Especially in the cargo sector, demand is increasing. Our leasing service lease&fly was almost completely booked out at times. We are also experiencing the effects of growth with our existing customers, for which we are stocking up the ULD fleets. By the end of the year, we will be managing around 110,000 ULDs for our customers worldwide.
Our highly efficient management is therefore also becoming even more interesting for new customers. With Jettainer, the available ULDs of an airline can be utilized more efficiently, so that significant growth from the existing ULD fleet is possible without any need for additional units.
As e-commerce is witnessing exponential growth, tell us how ULDs have been configured to deliver safely and in a day?
E-commerce is driving air cargo and has a considerable influence on the ULD business. Demand for ULDs is increasing and the requirements for handling speed and tracking have also grown. The entire industry must adapt to this. As part of this, efficient ULD management is also becoming more important.
Another aspect is that for safety reasons, the demand for fire-resistant containers is also increasing. Here, too, we responded at an early stage. Since last year, we have been offering the first fully certified fire-resistant container. The new container is the result of close cooperation with Satco Inc., a renowned manufacturer with decades of technological expertise and quality standards. We also provide a range of other fire-resistant containers and fire containment covers for pallets that have been successfully tested.
With 20-year forecasts of 40,000 new airplanes, what does that translate for ULDs?
ULDs are an elementary part of aviation. Whether for baggage or cargo, they are needed for every containerized aircraft flight. We are prepared for further growth and are closely monitoring the market. Thus, we can react flexibly to the needs of our existing and upcoming new customers at all times. Thanks to our pool of historical data and our sophisticated forecasting tool, we are able to plan ahead and anticipate.
What kind of innovations can we expect in ULDs?
The aim is to lighten the ULD without compromising its robustness. We are always interested in new developments and continuously exchange with manufacturers. In addition to fire-resistant containers, for example, we also provide nets for pallets made from sustainable bio-based materials, from our long-standing partner AmSafe Bridport. Around 60 percent lighter than conventional polyester options, they reduce fuel consumption, cutting costs and greenhouse gas emissions in international air transport.
Class-D fire-resistant containers for the transport of lithium batteries are another topic. IATA is working on the development of a standard for this, and we are monitoring the situation very closely to ensure that we can offer our customers optimum solutions.
In addition to the units themselves, we are also striving to make the ULDs journey even more transparent. There are still gaps that we want to fill in order to achieve further improvements and achieve an even higher level of efficiency for our customers, especially where units leave the airports. Digital solutions and better data transfer between all parties involved are key factors.
ONE Record data sharing standard offers completely new possibilities to do this. This is why we are preparing to adopt the IATA ONE Record standard for all areas of ULD management. By adding additional data from the handling process or the truck operators, we will enrich our knowledge base with more information. In doing so, it will allow us to provide our customers with additional valuable information.
Ultimately, ONERecord, JettWare and our digital twins will be the home of all ULD related data. Innovation will come from connecting new innovative sources, such as tracking devices, automatic loading systems, e.g., robots loading and unloading baggage, airport baggage handling systems, and many more. Based on the data gained from these sources, new AI modelling and prediction algorithms can be applied to furthermore reduce life-cycle cost and improve utilization of ULDs.
Sustainability is key in the aviation sector, take us through the sustainability efforts in ULDs?
Sustainability is a driver for change and innovation in the industry. The efficiency of our ULD management service, for example, which ensures that airlines can operate with fewer ULDs and that these are managed in an efficient way to avoid empty positioning flights.
Increasing utilization and efficiency of ULDs allows us to use considerably less material and equipment. This also reduces emissions, as aluminum production requires large amounts of energy.
Of course, the units used also have a major impact. Together with our customer Lufthansa, we played a key role in the development of the first lightweight containers, which were launched already in 2009. We are using modern lightweight materials, not only for the ULDs but also for straps and nets, to save both weight and CO2.
For example, we use the environmentally friendly Pallet Net Zero pallet nets from our long-standing partner AmSafe Bridport. These specially developed nets made from sustainable bio-based materials are the lightest on the market. They are around 60 percent lighter than conventional polyester versions and reduce fuel consumption, costs and greenhouse gas emissions.
For airlines that are not our customers, we offer skypooling, a free online portal for balancing excess or short stocks of ULDs.
Reports indicate that mishandled ULDs are the biggest cause of aircraft ground damage, costing the industry $300 million annually in repairs, can you explain this ‘avoidable’ factor?
ULDs are an important and valuable resource. There should be more awareness in the industry that ULDs are aircraft equipment providing safety cargo restraint in flight. The issue of damage on ULDs is very serious and causes high costs for the industry every year. Furthermore, ULD damage is also relevant to flight safety and workplace safety. We therefore work closely with manufacturers, MROs, and regulators to design ULDs in such a way that the risk of damage is minimized.
To decide whether a ULD is still serviceable in the case of a small damage, we provide our customers with special measuring cards that can be used to determine whether a ULD can still be used or needs to be repaired.
And above all, we never tire of raising awareness of the correct handling of ULDs. With special courses, we train several thousand ground handling employees worldwide in correct storage as well as proper handling of the units. Incorrect handling of ULDs, such as placing and loading them directly on the warehouse floor, is unfortunately a common but avoidable practice among airlines and freight forwarders, which we are addressing.
And we are also actively engaged in ULD Care, the trade association for ULD owners, operators and associated activities, and support all activities that promote the appropriate handling of ULDs.
Cargo shifting during flights is said to be ‘quite common’ event, is there something wrong with regard to ULDs, per se, needing further improvements or is it to do with cargo handling/loading, etc.?
The ULDs are designed to be restrained by the aircraft’s cargo loading system. During flight, the devices become part of the aircraft structure and are therefore, like any other aircraft component, subject to regulations to ensure flight safety. This is why it is so important to inspect the ULDs for serviceability before each deployment.
However, improper handling of ULDs after the check, for example during loading, can in the worst-case lead to bending of the fixing rails of the ULD and, in extreme cases, prevent the locks from being properly engaged in the aircraft. Responsible handling of ULDs is therefore essential for flight safety at all times.
Are there ULDs which are ‘fail-proof’ and what kind of training goes into handling ULDs, particularly for dangerous goods?
IATA has developed and maintained regulations, standards and procedures for the handling of dangerous goods.
As a partner of the IATA ULD Board and ULD CARE Board member, we contribute our expertise to the development of these standards, and we are also in contact with customers and ULD manufacturers to ensure that dangerous goods can also be handled efficiently and safely. However, it is essential that the people involved are properly trained to ensure adherence to all requirements.
With digitalization/AI, among many other smart technologies, making significant forays in air cargo movement, could you tell us how this can be factored in ULDs?
Managing a fleet of more than 100,000 ULDs efficiently around the globe requires high-quality data as well as the ability to analyze it professionally. To achieve this, we rely on highly developed digital solutions.
Our in-house developed IT solution JettWare offers transparent and real-time station inventory, ULD history and movement tracking as well as a variety of reporting options. Our advanced version, JettWare NG, already features initial artificial intelligence functions and will be continuously updated to provide even better workflow support.
In collaboration with university partners, Jettainer has also developed a sophisticated decision support system for ULD management that utilizes big data and machine learning. This enables us to better understand ULD journeys and predict ULD imbalances, allowing us to act rather than react.
To further increase transparency and gain valuable insights into optimizing ULD usage time, Jettainer has created digital twins for each ULD in its fleet.
Digital Twins are the home of all existing data of a ULD. They help to increase usage, drive down maintenance costs, and deliver easy access to the huge amount of data that is or will be generated through digital tracking with IoT solutions, ONERecord integration, and legacy integration with CargoIMP to all important cargo handling systems.
Do you have any product which aims at better transparency and improves ULD handling and flight safety?
Providing our customers with the best ULD management service is our core business, and transparency along the entire ULD journey is the key to efficiency and effectiveness. Our mission is therefore to use digital solutions to link all relevant data for us and our customers and thus generate added value.
The handling of ULDs is not up to us, but we offer training courses on the correct treatment of ULDs, raise awareness of the topic and never tire of emphasizing that ULDs are a valuable resource and an important part of aviation safety.
Could you run us through the special purposes’ aircraft ULDs such as temperature-controlled containers; ULD for animals; dangerous goods, etc.? How are they secured, particularly when there is turbulence?
Jettainer offers ULDs to securely load and move horses, cars, e-commerce shipments including lithium batteries, jet engines, big pets travelling with passengers, fresh fish, fruit, flowers, etc. including the service to lease these cool ULDs from providers such as cSafe, DoKaSch, or Envirotainer.
All of them are securely connected to the loading system of the aircraft and together with the aircraft handling manual and the ground operations manual, airlines and handling agents are able to avoid shifting cargo during turbulence.
Jettainer also supports customers with ULD serviceability and awareness training.
What are the challenges for an ULD team and how do you think this needs to be addressed?
For airlines, ULDs are essential in order to fulfil their core business: transporting passengers and cargo. Managing ULDs, in a most efficient way, is our DNA.
We relieve airlines from these tasks of ensuring that the right number of ULDs are always available in the right place. And we manage dedicated ULD fleets with only 80 percent of the units previously required. As a result, this ULD potential saving of 20 percent can either be used for growth or contributes to simply save cost.
Has the demand of airlines to ULD designers to create collapsible containers been met – such that airlines can load with cargo in one direction and then return as a flat pack?
We already provide our customers with collapsible horse stalls and collapsible LD3 baggage containers. This clever solution reduces costs for repositioning empty ULDs and helps us and our customers to maximize fleet utilization.
We are told that automated tracking system for ULDs has not gained momentum, if so, why?
Tracking the path that our ULDs take in global networks is essential – not just for our customers, but also for our management process we need precise data.
This can be achieved in various ways. We equip our customers’ fleets with IoT technology, if we gain useful advantages. However, current trackers are often dependent on the associated reader infrastructure, which sometimes reaches its limits outside the warehouse or at least the airport.
In the end, it’s all about data. And this is our main focus at the moment – to use data that is already being generated in large quantities during freight and baggage transport, linking and processing it in a meaningful way. We are already using this approach, and thanks to our in-house IT solution JettWare, we know very reliably and precisely where our ULDs are located at airport level – so our customers can rely on ULD availability.
This brings us also closer to our goal of making the journey of ULDs outside the airport more transparent. We are therefore currently developing and expanding APIs with customers and partners. These APIs are a smart way of handling data in order to improve operational efficiency and service quality. And we are also preparing to adopt the IATA ONE Record Standard for all areas of ULD management.
Tell us about your operations, growth and the opportunities you see in ULD?
Although I have only been CEO of Jettainer since June this year, I have known the business from the customer perspective for a very long time. I can definitely say that our team is excellently positioned.
Our experts live and breathe ULD management, and we have the suitable digital solutions to meet even highest customer requirements with our services at all times and offer significant added value. We want to growth further on the path we have embarked on in the long term and, with an openness to innovation, continue to convince with leading services in the future.
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