Cutting-edge technologies help thwart any possible treats against people, cargo and infrastructure at airports across the world while innovative solutions are enhanced to deal with any unforeseen events.
The September 11, 2001 Al Qaeda terror attacks against the United States completely overhauled the concept of airport security overnight. With nearly 3,000 people killed in a series of coordinated terrorist attacks in New York, Pennsylvania and Virginia, the world was left in a state of shock. No one expected anything dastardly as this. No one expected that global terrorism could make such scary inroads.
From then on, airport security has undergone a sea of transformation and has largely been responsible to prevent any such attacks. But some challenges remain.
In the US, 9/11 saw the birth of the Transportation Security Administration, popularly known by its acronym TSA. The agency is designed to prevent any disruption or use of airport for any terrorist or similar attacks in the future.
With tens of thousands of people joining TSA and committing themselves to strengthening transportation systems while ensuring the freedom of movement for people and trade, the world started looking at airport security in detail.
From what was random frisking of an individual to looking up ones’ cabin baggage, airport security has gone on to become extremely complex, some of it unseen to the passenger or to the freight forwarder. There are different layers of security with personnel doing the checks, even while technologies are at work trying to detect if anything is amiss.
Airport security, besides taking care of normal duties of seamless movement of passengers and cargo, is 24/7, 365 days of uninterrupted watch as global terrorism is here to stay.
Layered security systems
As mentioned earlier, airport security is layered with armed and unarmed personnel; automated systems; detection technologies; canine teams; human intel, among others. The TSA’s security environment is a classic example of how to stay ahead of an evolving threat landscape.
While TSA has a presence throughout the airport environment, the travelling public is only aware of them at checkpoints, but that is not all. TSA deploys cutting-edge technologies which include explosives trace detection (detects if an individual has come in contact with even minute amounts of explosive material); millimeter wave advanced imaging technology to safely screen passengers for metallic and non-metallic threats, including weapons and explosives, which may be concealed under clothing without physical contact; credential authentication technology, etc.
Cutting-edge technologies
TSA’s air cargo screening is currently more secure than it has ever been with 100 percent of cargo on flights departing US airports and 100 percent of identified high risk international cargo undergoing screening.
TSA regulates use of air cargo screening technologies through an approved technology list. Airlines and other TSA-certified entities perform cargo screening activities and purchase their own screening technology from the list.
The need for smart security systems needs no emphasis, its given. The former Director General of Airports Council International (ACI), Angela Gittens in an article has talked about ‘Smart Security – Vision 2040’ where innovations such as artificial intelligence, the use of big data and stand-off detection will radically transform the approach to aviation security and the way passengers, baggage and cargo are screened.
“Aviation security has typically been one of the slower elements in society to introduce innovation. Vision 2040 is all about changing this situation, challenging the way we do things today and creating a much-needed quantum leap towards sustainable passenger and baggage screening.”
Indian scenario
Airport security is high priority and it’s been addressed across all airports, big, medium or small in varying measures. Automation is happening in many countries, albeit at its own pace, even as technological advancements have some amazing equipment.
In India, full body scanners are being deployed in major airports such as Delhi, Bengaluru, Mumbai, Hyderabad, Kochi, Pune and Chennai. Presently, the CISF uses hand-held metal detectors and door metal detectors besides using CT and X-Ray machines for detecting any metal as part of airport security.
“The full body scanner system is under the process of implementation. The new system not only detects metals but also exclusive substances. It is still under trial. The full body scanners will be deployed in the airports across the country in a phased manner,” said Gyanendra Singh Malik, the Additional Director General of Central Industrial Security Force (CISF – Airport Security). The Bureau of Civil Aviation Security, a government of India body, oversees the security apparatus in airports.
Importantly, the CISF has setup the Airport Security Control Centre (ASCC) in New Delhi, first of its kind, to have an integrated command for aviation security across the country considering that India has nearly 500 airports with about 150 operational ones.
The robust security mechanism enables the CISF to monitor security and passenger and cargo movement at airports, and be able to respond, almost in real-time, to possible terror threats as well as congestion. The CISF conducts regular training programmes for its personnel and one of the programmes is Situational, Holistic Awareness and Risking Potential (SHARP).
At the core of security, besides technology, one critical element remains people and their performance. Deploying the right human resources is the cornerstone of good security management.
This includes recruiting the right resources, training them, certifying them (where appropriate) and making sure they are motivated to stay in the organization. Once hired, performance should be monitored and measured to make sure it meets the airport’s security objectives.
Pre-Loading Advance Cargo Information, key to cargo security
Apart from passenger and baggage screening, the airport has one big task of ensuring secure and safe movement of massive tonnage of cargo on a continuous basis. To combat with the ever-increasing security threats, authorities are continuously enhancing their cargo security programmes.
The importing country acquires advance shipment data to assess whether an intervention is needed and if so, what type of appropriate actions should be taken based on the assessment results (e.g. immediate withdrawal of the shipment from the supply chain, additional inspection or information).
Responding to security threats and incidents, the World Customs Organisation and the International Civil Aviation Organisation jointly introduced in 2019 an additional layer in the management of air cargo security risk.
As a result, Customs and aviation authorities are increasingly enforcing new security protocols to identify any potential ‘bomb in the box’ before shipments are loaded onto aircraft. This additional security layer comes on top of existing security regimes based on pre-arrival Advance Cargo Information (ACI) requirements. The new security regime, focused on assessing the risk prior to shipment loading, is called Pre-Loading Advance Cargo Information (PLACI). One of the key challenges for the industry is to comply with multiple PLACI initiatives while maintaining the speed and flow of cargo.
The two entities have released a revised supply chain and secure mail publication “Moving Air Cargo Globally”, which describes the roles and responsibilities of these various entities, and highlights how they can work together effectively to secure air cargo and mail within the regulatory framework.
“Maintaining operational efficiency and commercial viability has always been at the cornerstone of ICAO’s efforts towards improving aviation security, as demonstrated by the tremendous adaptability and resilience the air cargo sector showed during the COVID-19 pandemic,” remarked ICAO Secretary General Juan Carlos Salazar, noting that the understanding of the nature and level of related security threats – and how to combat them – has also significantly improved in recent years.
“’Moving Air Cargo Globally’” will help to support the implementation of robust and harmonized standards worldwide, while fostering the improved air transport connectivity which is so critical to the future sustainability of societies and economies everywhere.”
The continued surcharged security environment around the globe indeed has made airports strengthen security of vital installations. It is never a moment of taking it easy.
The Hong Kong hub, expected to be completed by 2028, can handle as much as 1 million tons of cargo. In recent years, UPS has made numerous network and facility enhancements across Asia, including Singapore, Japan, China, Vietnam, South Korea, and the Philippines. The company’s new hub in the Philippines is expected to be operational by late 2026.
Hong Kong, China— Global logistics service provider UPS (NYSE: UPS) and the Hong Kong Airport Authority have entered into an agreement that improves UPS service to customers and enhances the company’s operations in Asia with a new hub at the Hong Kong International Airport and near the Hong Kong-Zhuhai-Macau Bridge.
The new hub will serve as UPS Hong Kong’s main facility for processing and sorting imports, exports, and transshipments, to and from Europe, the U.S., and other parts of Asia.
The hub is expected to be completed by 2028 and will be built on a land parcel of 20,000 square meters with direct access to aircraft. The facility is being designed to handle close to 1 million tons of annual capacity, giving UPS and its customers around the world better and more reliable connectivity to Hong Kong, the Greater Bay Area, and the growing Asia Pacific consumer market.
“Hong Kong continues to be an engine of growth and a critical part of UPS’s global smart logistics network,” said Daryl Tay, president of UPS North Asia District. “This new hub, along with our existing operations at Shenzhen Bao An Airport, demonstrate our continued commitment to Asia. We will continue to invest in areas of our network that bring unique value to our customers and create additional growth opportunities for UPS.”
A fully automated facility, the hub will be powered by state-of-the-art sorting and scanning technology and boasts environment-friendly features.
This latest investment is part of UPS’s expansion plans to support Greater Bay Area growth, and better serve evolving customer needs and shipping demand across its air network. It also allows UPS to optimize its existing operations in Hong Kong by streamlining some smaller and separately located facilities.
Home to 86 million people and with gross domestic product worth almost US$2 trillion as of 2022, the Greater Bay Area comprises Hong Kong, Macau, and nine municipalities in southern China’s Guangdong Province. UPS has been operating in Hong Kong and Macau for 35 years, with services covering all 11 Greater Bay Area cities.
UPS says it will continue to invest in Asia Pacific to serve its customers with stronger cross-border connectivity, greater capacity, and an industry-leading customer experience. In recent years, UPS has made numerous network and facility enhancements across Asia, including Singapore, Japan, China, Vietnam, South Korea, and the Philippines.
UPS also launched UPS Premier, a ‘white glove’ shipping service targeted at healthcare customers who require precision logistics for patient-critical, time- and temperature-sensitive products. UPS Premier is now available in seven countries in Asia, including Hong Kong, with more locations planned for launch next year.
Continued growth in Asia Pacific with new hub in the Philippines
CLARK, Philippines – Global logistics leader UPS (NYSE: UPS) has taken the value of its investment commitments in Asia Pacific to over $250m since the start of 2023.
The investments include the company’s recent agreement with The Luzon International Premiere Airport Development Corporation (LIPAD) to expand its operations at Clark Airport (CRK) in the Philippines.
The move will enable UPS to further strengthen its portfolio of integrated express, supply chain and healthcare logistics services.
“Asia Pacific continues to be one of UPS’s fastest growing regions. UPS has continued to invest in our network to maximize speed and flexibility, build solutions addressing the shift of global trade lanes, and offer resilience for our customers,” said Wilfredo Ramos, president, UPS Asia Pacific.
The agreement is the latest in a series of recent network and facility enhancements the company has made across Asia Pacific including in Singapore, Japan, China, Vietnam, South Korea, Taiwan, and most recently Hong Kong, where UPS announced it will open a new state-of-the-art facility by 2028.
“We have been doing business in our Philippines hub for more than 25 years, helping to connect businesses to markets in Asia Pacific and beyond. The investments UPS continues to make through this expansion will enhance time in transit across Asia Pacific and continue to deliver service reliability for our customers and position UPS for long term growth,” Ramos added.
Since 2022, UPS has also invested intensively in its Healthcare business introducing UPS Premier – which provides priority handling for time- and temperature-sensitive, patient-critical products – in nine markets across the Asia Pacific region.
In 2023, the company added over 22,000 square meters of cold-chain enabled handling, storage and distribution space via new healthcare facilities in Singapore and Australia. An additional 12,000 square meters is planned for 2024.
“UPS’s expansion in Clark will bring positive changes to Pampanga, providing job opportunities for the local community and serving as an economic stimulus in the region,” said LIPAD Chairperson Josephine Gotianun Yap.
“This partnership between UPS and LIPAD also represents a significant milestone in developing Clark as an ideal logistics hub for global brands aiming to establish or expand their international operations. LIPAD, which operates Clark International Airport, looks forward to welcoming UPS to its future location in Clark and supports its expansion in the Philippines,” Yap continued.
Why it matters: The Asia Pacific region is home to many of the fastest-growing global economies. UPS said by making improvements to its customer experience there, the company is positioning itself to become the number #1 complex healthcare logistics provider and premium logistics orchestrator in the world.
“We’ve been in our Philippines hub for more than 25 years, helping connect businesses to markets in Asia Pacific and beyond,” Ramos noted. “The investments will enhance time in transit and position UPS for long term growth.”
“We’re also growing our healthcare business in the region, introducing UPS Premier in nine markets across Asia Pacific. This service provides priority handling for time- and temperature-sensitive, patient-critical products,” he added.
In 2023, UPS added over 22,000 square meters of cold chain-enabled handling, storage and distribution space with new healthcare facilities in Singapore and Australia. An additional 12,000 square meters is planned for 2024. Source: www.ups.com
“There is no ‘one size fits all’, in this respect, we are a boutique airline, looking at each special shipment individually when it comes to ensuring we are meeting our regulatory and legal obligations. Our combined teams have tremendous expertise and years of air cargo knowledge.”
In the air cargo industry, every cargo matters. But there are also shipments that need unique requirements for their safe handling, storage, or transportation.
These are categorized as “special cargo”. This covers a diverse range of items, such as fine art, jewelry, pharmaceuticals, sensitive equipment, dangerous goods, live animals and even live stage props for entertainment events. Overall, expertise in specialized cargo plays a vital role in ensuring its safe, efficient, and compliant transportation. The unique nature of these goods necessitates specialized care and attention, often involving additional security measures, temperature controls, or custom-designed containers.
The global Perishable Goods Transportation market size was valued at USD 4211.82 million in 2021 and is expected to expand at a CAGR of 8.04% during the forecast period, reaching USD 6696.81 million by 2027 (precision reports).
In this exclusive interview with Air Cargo Update, Damien Mazaudier, CEO of CMA CGM Air Cargo, discusses the unique challenges and considerations involved in transporting specialized cargo.
Mazaudier also explores the innovative approaches and technologies CMA CGM Air Cargo employs to meet the demands of modern air freight logistics, while also prioritizing sustainability and environmental responsibility.
Specialized Cargo handling types
Mazaudier explains that since the very first days of CCAC, has been transporting many special and unique goods on their aircraft. These include:
Aircraft engines and some big aircraft parts.
“The dimensions are or can be an issue to handle, from delivery in the warehouse to handling it through the aircraft door. The weight also could be a challenge when positioning it in the aircraft. Just like dangerous goods could be a topic when moving this kind of cargo. The expertise of our teams and load masters’ do make the difference. They are in the warehouse and by the aircraft assisting, guiding and supervising the loading, ensuring that the shipment is handled with care as per the latest industry standards.”
Humanitarian relief goods.
“Thanks to our reactivity and ability to engage crew and aircraft very rapidly, we have done numerous charter flights where speed is of the essence, bringing relief goods to disaster areas. Our expert teams work with the customer right from the very beginning at quotation time, till loading and unloading under the supervision of our load masters. We can arrange everything; all permits in order to enable those flights in record time.”
Perishable and live animals.
“Our ground processes, qualified staff and the partnership with our best-in class handling agents ensure optimal handling of those sensitive products. Well defined ground processes and worldwide consistent implementation of those processes are crucial for the product integrity and the well-being of the animals. Of course, we adhere to the strictest industry standards”.
Temperature controlled goods.
“We perfectly understand the necessity to maintain product integrity during the transportation of temperature-controlled goods. We work as per GDP principles. Our staff are perfectly trained, our processed designed around GDP requirements and we work with certified GHA partners to ensure that we can keep our customer promise. All those actions are strictly supervised by our expert teams, whether at the hub or in the outstations. When customers entrust us with those shipments, we ensure that we give them peace of mind.”
Adhering to IATA Dangerous Goods Regulations
Air cargo carries more than 1.25 million dangerous goods every year. IATA notes that the number of dangerous goods will increase significantly with the air cargo forecast to grow at 4.9% per year for the next five years.
Safety regulations are essential when shipping dangerous goods by air. IATA identifies risks and works closely with ICAO to update regulations. This provides stakeholders with the latest guidelines for handling and shipping dangerous goods.
“As a freighter operator, we are transporting hazardous materials from simple consumer goods (like perfume) to lithium batteries, in full accordance with the IATA Dangerous Goods Regulations
and all other international/local regulations (including ICAO). We understand the importance to transport those goods in a safe and consistent way across our network,” explains Mazaudier.
“As an airline, we have a dedicated DG responsible person ensuring that we adhere to the latest and strictest industry and local regulations. All our staff (on the ground and in the air) are being trained in the specificities of handling dangerous goods. As a freighter airline, we have more opportunities to transport DG, therefore special focus is placed on ensuring that we stick to our processes. We have received all DG licenses from our French Civil Aviation Authority and are certified to transport and handle DG all over our network. Our partner GHAs are perfectly trained to handle dangerous goods. We are also able to obtain exemptions and approvals to transport certain more delicate materials,” he added.
Handling Agents’ Partnership
According to Mazaudier, CMA CGM Air Cargo has partnered with handling agents who are providing the requested equipment in case of special shipment.
For vulnerable shipments, dedicated storage is being arranged, with close monitoring.
“For pharmaceutical shipments we rely on our hub GHA WFS and their highly sophisticated pharma center, equipped with appropriate temperature-controlled storage areas and fully CEIV-pharma compliant,” he said.
According to him, equipment and facilities’ efficient processes and trained expert teams are key to ensuring safe and reliable consistent transportation of special cargo.
“Understanding transportation pain-points is key. Our sales, ground ops and load master teams are always very close to all supply chain stakeholders to discuss optimal transportation solutions. We believe in tailor-made solutions and cocreation to fully exploit the capabilities of our freight fleet and meet the needs of our customers,” he noted.
Implementing Stringent Security Protocols
Most specialized cargo shipments are valuable or delicate, requiring expert handling to ensure their safety during transportation.
CMA CGM Air Cargo implements a variety of strategies and protocols to safeguard these goods throughout the journey.
From meticulous planning and secure packaging to advanced tracking systems and trained personnel, every precaution is taken to minimize risks and protect the integrity of the cargo.
“When required, we work with all actors of the supply chain to ensure the right measures are in place for safe and secure cargo transportation. For example: Sensitive cargo is stored in dedicated areas, under close CCTV monitoring. Our RFS providers are all using GPS tracking of their trucks, therefore knowing in real time where the cargo is.
“We allow approved tracking devices on our aircraft: whether they are active or passive, those tracking devices can record temperature, shock, light exposure, and we can react fast in case of irregularity.
“We should also look at how to leverage technology (IoT, block chain) to reinforce security/safety around the transportation of cargo, together with all the other actors around the supply chain (shippers, RFS providers, GHAs, authorities).
“Packaging is also crucial for a safe and secure movement of cargo: this is the responsibility of the shippers and we rely on their professionalism to ensure this is meeting the latest standards,” said Mazaudier.
Challenges Faced
Mazaudier also shared one of his most challenging experiences in the industry.
“We had this one engine shipment with dimensions “ok” on paper but was not possible to load. Through dialogue with the shipper, our load masters and ground ops teams found the solution by removing a part of the engine so that it could go through the door and be loaded in the aircraft. Our teams were evaluating the best solution guaranteeing safety of the shipment as well as the aircraft,” he said.
With the ever-increasing demand for efficient air cargo transport, the importance of packaging and labelling solutions in safeguarding fragile items cannot be overlooked.
“The shipper is the key and fully in charge of the packaging and labelling of any special goods. Our handling agents will check at acceptance that the packaging is in good state, that proper labelling such as fragile, perishable, temperature or any hazardous nature is well on the boxes delivered. Having trained staff and working with best-in-class GHAs is key to success,” he said.
Any mishandling of hazardous goods can have severe consequences. Labelling plays a crucial role in identifying the potential risks associated with these materials.
Clear and standardized labels help workers, emergency responders, and the public quickly recognize the hazards present, enabling them to take appropriate precautions and actions to prevent accidents.
“Very special goods are usually delivered at the last minute, ensuring smooth acceptance, appropriate ground handling and loading in the aircraft. Pharma products are stored in appropriate temperature controlled areas. And vulnerable goods are stored in dedicated areas with close supervision,” said Mazaudier.
“Storage is actually a GHA responsibility. So, we ensure proper dialogue and quality monitoring with our ground partners.”
International Logistics Process
The process of international logistics involves the transport of finished products along an international supply chain.
It involves cross-border shipping as well as international distribution to deliver goods efficiently to users around the world.
While transporting fragile items across borders, various factors come into play that can affect the safety of the shipment. The mode of transportation, packaging materials used, handling procedures, and the distance the items need to travel all play a significant role in ensuring the safe delivery of fragile goods.
The mode of transportation, whether by air, sea, or land, can impact the level of jostling and vibrations the items are exposed to during transit.
The quality of packaging materials, such as cushioning materials and sturdy boxes, can make a difference in protecting fragile items from impact and pressure.
The handling procedures at customs checkpoints and during loading and unloading can also impact the safety of fragile items during transportation.
“Indeed, regulations and compliance topics are getting more and more complex and ever-changing. Our expert teams are keeping up to date with the latest rules and regulations,” said Mazaudier.
“We also work with a network of agents for country specific regulations. Our connections with authorities and civil aviation worldwide allow us to be aware of the latest developments. Finally, as we are pa of CMA CGM Group, a global player in sea, land, air and logistics solutions, so we also have access to a lot of internal information regarding expos and trade: we can always rely on our shipping colleagues to help us in case of questions,” he added.
No ‘One Size Fits All’ Approach
A necessary step in ensuring the safety of specialized cargo shipments is classifying the materials being transported. Hazardous materials are categorized based on their potential risks, such as flammability, toxicity, and reactivity.
Experts must accurately label and document these materials to determine the appropriate handling procedures and emergency response protocols.
“There is no ‘one size fits all’ on this topic, in this respect we are a boutique airline, looking at each special shipment individually when it comes to ensuring we are meeting our regulatory and legal obligations. Our combined teams have tremendous expertise and years of air cargo knowledge,” said Mazaudier.
“We also leverage CMA CGM Group resources, like for instance its vast and recognized expertise on compliance topics. Our processes are well defined, ensuring allregulatory and legal obligations are covered,” he added.
Focus on Sustainability
The CMA CGM Group is committed to achieving Net Zero Carbon by 2050 across all its activities, including air freight
activities.
“To support our ambition to reduce the carbon footprint of our air operations, we are working on three main areas: operations optimization, aircraft modernization, and the use of sustainable fuels.
“Our air operations are making significant optimization efforts, particularly by leveraging artificial intelligence (SkyBreathe® software) to analyze extensive data from each flight (collected from black box data recorders, weather, and air traffic) to optimize flight plans and maneuvers both in the air and on the ground, and thus reduce fuel consumption.”
Furthermore, CMA CGM Air Cargo will be the launch company for the A350F, the most efficient air freight model on the market. Thanks to its optimized fuselage, the use of lighter composite materials, and its enhanced engine, the A350F will emit an average of 20% less CO2 equivalent than its current equivalent, the B777.
CMA CGM Air Cargo is also gradually integrating sustainable aviation fuels (SAF) into its energy mix.
DUBAI, UAE: Emirates Group’s profit for financial year 2023- 2024 ending on 31 March 2024 soared by 71 percent to AED 18.7 billion (US$ 5.1 billion), the highest ever recorded in its history, enabling the firm to give out massive bonuses to its employees.
According to its latest annual report, Emirates Group posted a record profit of AED 18.7 billion (USD 5.1 billion), up 71% compared with an AED 10.9 billion (US$ 3.0 billion) profit in FY 2022-2023. The Group’s revenue was AED 137.3 billion (US$ 37.4 billion), an increase of 15% over last year’s results. The Group’s cash balance was AED 47.1 billion (US$ 12.8 billion), the highest ever reported, up 11% from last year.
Both Emirates and dnata saw significant profit and revenue increases in 2023-24, as the Group expanded its operations around the world to meet strong customer demand for its high-quality products and services.
Profits surpass pandemic losses
Combined Group profits for the last 2 years, at AED 29.6 billion, surpass pandemic losses of AED 25.9 billion during 2020-2022.
His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates airline and Group said: “The Emirates Group has once again raised the bar to deliver a new record performance. Throughout the year, we saw high demand for air transport and travel related services around the world, and because we were able to move quickly to deliver what customers want, we achieved tremendous results. We are reaping the benefit of years of non-stop investments in our products and services, in building strong partnerships, and in the capabilities of our talented people.
“Huge credit is also due to the UAE’s visionary leaders, especially HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. It is thanks to their leadership and the nation’s progressive policies that the Emirates Group is able to flourish. Both Emirates and dnata have forged successful business models leveraging Dubai’s unique advantages, in turn generating enormous value for Dubai and the communities they serve around the world.”
HH Sheikh Ahmed noted the Group’s excellent financial performance puts in a strong position for future growth and success.
Many major projects are already underway, including: a multibilliondollar aircraft fleet and cabin renewal program; new catering, cargo, and ground handling capabilities; advanced technologies to support the Group’s operations; expanded training and people development programs; and initiatives to progress the Group’s sustainability agenda.
In 2023-24, the Group collectively invested AED 8.8 billion (US$ 2.4 billion) in new aircraft, facilities, equipment, companies, and the latest technologies to support its growth plans.
The Group’s total workforce grew by 10% to 112,406 employees, its largest size ever, as Emirates and dnata continued recruitment activity around the world to support its expanding operations and bolster its future capabilities.
The Group took significant strides in its sustainability journey during 2023-24, putting into action numerous initiatives focused on the environment, its people, customers, and communities.
Environmental topics were high on the agenda during the year, as the UAE hosted the world’s biggest conference for climate action, COP28, in Dubai.
In 2023-24, Emirates signed new supply agreements to uplift sustainable aviation fuel (SAF) at its Dubai hub for the very first time, and also in Amsterdam and Singapore. The airline operated the first A380 demonstration flight using 100% SAF in one engine, collecting data to support industry efforts to enable a future of 100% SAF flying.
Recognizing that airlines today have the limited viable solutions to meaningfully reduce carbon emissions, Emirates established a US$ 200 million fund to support R&D projects that focus on reducing the impact of fossil fuels in commercial aviation. It also became a founding entity of Air-CRAFT, a UAE-based research consortium for renewable and advanced aviation fuels; and joined The Solent Cluster, a UK initiative focused on producing low-carbon fuels for a variety of sectors, including aviation.
dnata eyes greener projects
dnata continued to invest and induct more electric and hybrid vehicles to its global fleet of ground support equipment (GSE), adding new baggage tractors, cargo loaders, and pushback tractors to its USA operations.
It also converted and refurbished dieselpowered GSEs in Italy to run on Hydrogenated Vegetable Oil and electric power. dnata’s UAE businesses including dnata logistics, Arabian Adventures, Alpha Flight Services and City Sightseeing Worldwide, transitioned to biofuel for its landside fleet of vehicles.
During the year, dnata became the first combined air services provider to receive the International Air Transport Association’s environmental management (IEnvA) certification for its commitment to sustainability across its UAE businesses; and Emirates achieved IEnvA Stage One and the IEnvA Illegal Wildlife Trade module certifications, for its efforts in environmental stewardship and anti-wildlife trafficking.
The Group ramped up investments in people development, rolling out a comprehensive program of learning and training options for its workforce in partnership with top universities and key industry partners. A Gender Balance Council was established to champion and promote gender equality within the Group.
“We enter our 2024-25 financial year on strong foundations for continued growth. Emirates will receive delivery of 10 new A350 aircraft in 2024-25, adding to our fleet mix and supporting the next phase of its network growth. dnata will continue to leverage synergies and scale across its business divisions to grow its footprint and capabilities. In tandem, we are investing resources to minimise our environmental impact, develop our people, look after our customers and the communities we serve,” said Sheikh Ahmed.
“The business outlook is positive, and we expect customer demand for air transport and travel to remain strong in the coming months. As always, we will keep a close watch on costs and external factors such as oil prices, currency fluctuations, and volatile environments caused by socio-political changes. Our business model has been tested before, and I am confident in our resilience and ability to respond quickly to opportunities and challenges,” he added.
He further noted, “Looking further ahead, the Dubai government has announced plans to start the next phase of expansion at Al Maktoum International Airport, which will eventually be the new hub for Emirates and dnata’s operations. This AED 128 billion (US$ 35 billion) investment will significantly expand and enhance Dubai’s aviation and logistics infrastructure, supporting the city’s growth, and Emirates’ and dnata’s growth.
Emirates hit record-profit with nearly 60 mn passengers carried
Emirates’ total passenger and cargo capacity increased by 20% to 57.7 billion ATKMs in 2023-24, recovering to near pre-pandemic levels. Providing customers with more connection options, Emirates restarted services to Tokyo Haneda, added capacity to 29 destinations, and launched new daily flights to Montréal, Canada. Emirates also inked codeshare and interline agreements with 11 new airline partners, further extending its network’s reach. By 31 March 2024, the Emirates network comprised 151 destinations across six continents, including 10 cities served by its freighter fleet only.
Emirates brought its flagship A380 and popular Premium Economy product to even more cities this year, as 16 more aircraft rolled out of its US$ 2 billion cabin retrofit program, fully refurbished with the airline’s latest signature products. As of 31 March 2024, the Emirates A380 served 49 destinations, and customers could enjoy Emirates’ Premium Economy experience to and from 15 cities around the world.
Total fleet count at the end of March was 260 units, with an average fleet age of 10.1 years.
Emirates’ order book stands at 310 aircraft, after it announced orders worth US$ 58 billion combined, for 110 additional units of Boeing 777s, 787s, and Airbus A350s at the 2023 Dubai Airshow. These new generation widebody aircraft will replace older jets and support fleet growth, aligning with the airline’s long-standing commitment to fly modern aircraft that are efficient to operate, and able to offer customers the latest inflight comforts and experiences.
With increased capacity deployment and strong demand across markets, Emirates’ total revenue for the financial year increased 13% to AED 121.2 billion (US$ 33.0 billion). Currency fluctuations and devaluations in some of the airline’s major markets, notably the Pakistani Rupee, Egyptian Pound, and Indian Rupee, negatively impacted the airline’s profitability by AED 2.0 billion (US$ 0.6 billion).
Driven by the voracious appetite for travel across customer segments, the strength of its global network, and the appeal of its products, the airline hit a new record profit of AED 17.2 billion (US$ 4.7 billion) exceeding last year’s AED 10.6 billion (US$ 2.9 billion) result, with an exceptional profit margin of 14.2%, marking it the best performance in the airline’s history.
Emirates carried 51.9 million passengers (up 19%) in 2023-24, with seat capacity up by 21%. The airline reports a Passenger Seat Factor of 79.9%, rising from 79.5% last year. Passenger yield declined 2% to 36.6 fils (10.0 US cents) per Revenue Passenger Kilometer (RPKM), due to a change in cabin and route mix, fares and currency.
Emirates SkyCargo reaffirms lead in global cargo industry
Emirates SkyCargo reaffirmed its position in global air logistics and trade, carrying 2.2 million tons of goods around the world in 2023-24, up 18% from the previous year, as increased passenger operations expanded available cargo capacity, and the leasing of three 747 freighters during the year unlocked immediate capacity to serve demand on busy routes.
This reflects the high customer demand for its specialist logistics solutions, the reach and connectivity of Emirates’ global network, Dubai’s world-class sea-air hub capabilities, and the fruits of Emirates SkyCargo’s ongoing investments in digital technology, infrastructure, and products. Despite continued challenges in global logistics, the cargo division reported a solid revenue of AED 13.6 billion (US$ 3.7 billion), contributing 11% to the airline’s total revenue. Cargo yield per Freight Ton Kilometer (FTKM) declined by 32%, returning to pre-pandemic marketplace levels.
During the year, it launched Emirates Vital and Emirates Medical Devices, two purpose-built cargo solutions to serve the unique requirements of the life sciences and healthcare sector. It also launched Emirates Delivers in Kuwait to connect shoppers there with e-commerce brands in the UK, the US, and the UAE. Emirates Delivers is poised to scale significantly in the coming years, focusing on markets underserved by business-to-consumer delivery solutions.
At the end of 2023-24, Emirates’ SkyCargo’s total freighter fleet stood at 11 Boeing 777Fs. The cargo division expects delivery of its 5 additional Boeing 777Fs on order from mid- 2024.
Under Emirates Group companies and subsidiaries, Emirates Flight Catering and MMI/Emirates Leisure Retail (ELR) reported notable results in 2023-24.
Emirates Flight Catering hit record revenues of AED 970 million (US$ 264 million) from its external customers, driven by traffic growth at Dubai’s airports. It supplied 76.9 million meals to airline customers, 19% more than the previous year, and saw rising demand for its other ancillary businesses including at Linencraft, its laundry facility which primarily serves airline and hospitality clients.
About 3 million people worldwide are directly employed in the aviation sector. The travel and tourism value chain suppos some 320 million jobs and accounts for about 10% of all economic activities. While the air cargo industry delivers $8.3 trillion of trade annually—some 35% of total global trade.
Leaders of the global airline industry gathered in Dubai for the 80th Annual General Meeting of the International Air Transport Association (IATA) which represents 336 carriers, and the World Air Transport Summit (2-4 June 2024).
The event was held in the UAE for the first time and hosted by Emirates Airline. More than 1,500 participants were in attendance, including industry leaders, government officials and representatives from some 200 media across the world.
H.E. Abdulla bin Touq Al Marri, Minister of Economy for the United Arab Emirates warmly welcomed the delegates to Dubai.
The benefits of global connectivity were highlighted throughout the entire event. Globally, aviation directly employs 3 million people and is a key enabling part of the travel and tourism value chain which supports some 320 million jobs and accounts for about 10% of all economic activity. Moreover, air cargo delivers $8.3 trillion of trade annually—some 35% of total trade.
For Dubai, Oxford Economics estimates that aviation contributed 27% to Dubai’s GDP and supported $37 billion in gross value added in 2023. This is projected to increase to $53 billion dollars in 2030, in line with Dubai’s growth.
World Air Transport Summit and SAF Goals
The World Air Transport Summit (WATS) immediately followed the AGM for a comprehensive program addressing critical issues facing aviation.
IATA announced it will establish the SAF Registry (Registry) to accelerate the uptake of Sustainable Aviation Fuels (SAF) by authoritatively accounting and reporting emissions reductions from SAF.
17 airlines, one airline group, six national authorities, three Original Equipment Manufacturers (OEMs), and one fuel producer are already supporting the effort to develop the Registry. The Registry is expected to launch in the first quarter of 2025.
SAF is expected to account for up to 65% of the total carbon mitigation needed to achieve net zero carbon emissions in air transportation by 2050.
“SAF is key to aviation’s decarbonization. Airlines want more SAF and stand ready to use every drop of it. The SAF Registry will help meet the critical needs of all stakeholders as part of the global effort to ramp-up SAF production. Governments need a trusted system to track the quality and quantities of SAF used. SAF producers need to accurately account for what has been delivered and effectively decarbonized. Corporate customers must be able to transparently account for their Scope 3 emissions. And airlines must have certainty that they can claim the
environmental benefits of the SAF they purchased. The Registry will meet all these needs. In doing so, the Registry will help create a global SAF market by ensuring that airlines have access to SAF wherever it is produced, and that SAF producers have access to airlines regardless of their location,” said Willie Walsh, IATA’s Director General.
Sustainable Aviation Fuels (SAF) production in 2024 to 1.9 billion liters (1.5 million tons) are on track. This would account for 0.53% of aviation’s fuel need in 2024. To accelerate SAF use, there are several policy measures that governments could take, IATA said.
Some 140 renewable fuel projects with the capability to produce SAF have been announced to be in production by 2030. If all of these proceed to production as announced, total renewable fuel production capacity could reach 51 million tons by 2030, with production capacity spread across almost all regions.
Passenger traffic keeps growing, fueling profits for airlines
IATA said passenger demand has steadily grown for the past three years or 36 months. In April 2023, passenger traffic was up 11 percent compared to the same month in 2022 with a load factor of 82.4%. With passenger traffic continually growing, some airlines have posted strong profits during the period.
IATA Outlook highlights
Net profits are expected to reach $30.5 billion in 2024 (3.1% net profit margin). That will be an improvement on 2023 net profits which are estimated to be $27.4 billion (3.0% net profit margin). It is also an improvement on the $25.7 billion (2.7% net profit margin) forecast for 2024 profits that IATA released in December 2023.
Return on invested capital in 2024 is expected to be 5.7%, which is about 3.4 percentage points (ppt) below the average cost of capital.
Operating profits are expected to reach $59.9 billion in 2024, up from an estimated $52.2 billion in 2023.
81st AGM and WATS to be held in India
Pieter Elbers, CEO of IndiGo, has assumed his duties as Chair of the IATA Board of Governors (BoG). His one-year term began at the conclusion of the 80th IATA Annual General Meeting in Dubai, United Arab Emirates, on 3 June.
IndiGo will host the 81st IATA Annual General Meeting (AGM) and World Air Transport Summit in Delhi, India, on 8-10 June 2025.
“IndiGo is proud to be host airline for the 81st IATA AGM and looks forward to welcoming the global aviation community to Delhi in 2025. India, becoming the third largest economy within the next few years and leading the fourth industrial revolution with the use of AI, is a nation on the move. India’s rise in the global aviation landscape over the last years has been nothing short of remarkable,” said Elbers.
MAN Truck & Bus, one of Europe’s leading commercial vehicle manufacturers and providers of transport solutions with an annual turnover of about EUR 11 billion annually, and ABB E-mobility, the global leader in electric vehicle charging solutions, signed an exclusive cooperation agreement in January. Their strategic partnership aims to work even more closely together, particularly in the area of development.
Thomas Nickels, Senior Vice President Engineering at MAN, sees the cooperation as a specialty in the market.
“Cooperation in the area of research and development is rather rare in our industry. Together with ABB E-mobility, we are striving for a trusting, binding and transparent partnership. We are already starting with the development of products and standards and are focussing on the special requirements of the commercial vehicle industry,” Nickels said.
The importance of cross-industry cooperation for the entire sector is particularly evident for megawatt charging system (MCS), Nickels continued: “At MCS, we are working with players from the entire sector to enable charging capacities in the megawatt range in the future and thus sustainable and economical long-distance heavy goods and passenger transport. By cooperating with ABB E-mobility, we can tackle the challenges of the new technology at an early stage and drive standardisation forward more quickly.”
These challenges include the ISO15118-20 communication standard and new ways of transmitting signals. The basis for megawatt charging is Ethernet communication, which is being used for the first time in electromobility. Early software and interoperability tests with vehicles and charging stations should help to establish reliable products as quickly as possible in an emerging market environment.
This is why the cooperation, which is initially scheduled to run for three years, is focussing on the customer experience right from the start, in addition to the internal development and further development of charging stations, vehicles and software.
“High charging performance, reliable technology and customer confidence – these are the prerequisites for the success of electromobility in heavy goods and long-distance passenger transport. By working together with MAN right from the early product phase, we can respond even better to the needs of our customers. By 2025, we want to bring a product to the market that meets the requirements of logistics,” said Floris van de Klashorst, Senior Vice President Products & Hardware Platforms at ABB E-mobility.
“The market needs an ecosystem that interlocks and works reliably. That’s why we want to jointly develop a concept for the interaction of MCS and CCS that addresses issues such as space, energy supply and grid expansion. MAN’s extensive expertise helps us to develop customer-oriented solutions – both for use in the depot and on the track,” says van de Klashorst, giving an outlook on future projects.
The cooperation is not just limited to logistics: “MCS will also be used in the future in the travel sector, for example for motorhomes and coaches. This will bring additional challenges and a change in user behaviour,” continued the Head of Development. SOURCE: www.mantruckandbus.com
MAN rolls out battery repair centers in Europe
In 2024 and 2025, MAN Truck & Bus will establish battery repair centres in Italy, Denmark/Norway, Austria, Belgium, Netherlands, France, Poland and UK, with further countries in Europe being planned.
Millions will be invested in these centers over the next two years. Two battery repair centers are already in operation in Germany (Hanover-Laatzen site) and Spain (Barcelona). The roll-out of the battery repair hubs in Europe is necessary because the first units of the new MAN eTruck generation will be delivered to customers in 2024.
Over 1,000 battery-electric MAN city buses and more than 2,400 all-electric MAN vans are already on Europe’s roads. With the ramp-up of MAN eTruck production, the electric vehicle population will continue to increase significantly in the coming years. The Munich-based commercial vehicle manufacturer is preparing intensively for this within its service organisation.
“Battery repair is a necessity for MAN to ensure the economic efficiency and operational readiness of our customers’ electric vehicles at a high level. We also make a major contribution to the closed-loop approach of traction batteries, as this extends the battery life in the vehicle, which conserves important resources,” said Christopher Kunstmann, Senior Vice President of Customer Service Management at MAN Truck & Bus.
The first battery repair centre and the associated build-up of expertise in the repair of batteries dates back to 2020. The first pilot repairs and process documentation were carried out for the battery of the MAN eTGE electric van, which was launched on the market in 2018.
This was followed by the battery packs of the MAN eTGM distribution truck, which was launched in a small series in 2020, and the start of series production of the MAN Lion’s City E electric city bus—also in 2020. Repair steps were trialled for all of these different batteries, employees were trained, repair instructions were created and workplace requirements were defined.
This knowledge, which was built up in the first MAN battery repair centre in Hanover-Laatzen, is now being successively transferred to the other markets. The aim is to operate a battery repair hub in every market in which MAN is represented with battery-electric commercial vehicles. Short transport routes and highly trained technicians on site will ensure that the battery can be repaired quickly. This minimises vehicle downtime.
At MAN, a battery repair center has to meet certain criteria based on practical experience and legal standards in the respective countries. On the one hand, the appropriate high-voltage and special tools are required for handling the respective battery types of the vehicles. In addition, special protective equipment must be available for the electricians working there. The premises also fulfil certain requirements, e.g. access control, double doors, air conditioning, ventilation concept, 400 V socket and load crane.
DUBAI, United Arab Emirates: Dubai is poised to become the hub of the world’s largest airport terminal capable of handling 260 million passengers annually with the government announcing a AED128 billion (about USD 35 billion) design plan for the emirate’s new aviation gateway at the Al Maktoum International Airport.
Dubai International Airport (DXB), currently the world’s busiest airport for international travel, will be moved to the sprawling Al Maktoum International Airport once the project is completed within the next 10 years.
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, announced the ambitious aviation milestone for Dubai on 28 April 2024.
“Today, we approved the designs for the new passenger terminals at Al Maktoum International Airport, and commencing construction of the building at a cost of AED 128 billion as part of Dubai Aviation Corporation’s strategy. Al Maktoum International Airport will enjoy the world’s largest capacity, reaching up to 260 million passengers. It will be five times the size of the current Dubai International Airport, and all operations at Dubai International Airport will be transferred to it in the coming years. The airport will accommodate 400 aircraft gates and feature five parallel runways. New aviation technologies will be employed for the first time in the aviation sector,” the Dubai ruler said on X (formerly twitter).
Sheikh Mohammed discussed the plan when he visited the Dubai Aviation Engineering Projects, accompanied by H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, and H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance.
H.H. Sheikh Ahmed bin Mohammed bin Rashid Al Maktoum, Second Deputy Ruler of Dubai; H.H. Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai Aviation City Corporation, Chairman of Dubai Civil Aviation Authority, and Chairman and Chief Executive of Emirates Airline and Group; and Mohammad bin Abdullah Al Gergawi, Minister of Cabinet Affairs, and Chairman of the Dubai Executive Office, were also present during the announcement.
“As we build an entire city around the airport in Dubai South, demand for housing for a million people will follow. It will host the world’s leading companies in the logistics and air transport sectors,” Sheikh Mohammed noted. “We are building a new project for future generations, ensuring continuous and stable development for our children and their children in turn. Dubai will be the world’s airport, its port, its urban hub, and its new global center.”
Sheikh Ahmed bin Saeed said the new airport is designed to meet Dubai’s growing aviation needs for the next 40 years, saying, “It will respond to the Hub Airline ambitious plans in terms of fleet acquisition and passenger growth. The airport will provide cutting-edge technologies, passenger facilities with unmatched level of service, and state-of-the-art aviation support facilities.”
“Al Maktoum International (AMI) is planned in such a way as to represent a leap into the future. It will comprise of five parallel runways with a quadruple independent operation, west and east processing terminals, four satellite concourses with over 400 aircraft contact stands, uninterrupted automated people mover system for passengers, and an integrated landside transport hub for roads, Metro, and city air transport,” he added.
Paul Griffiths, CEO of Dubai Airports, said Dubai’s growth has always gone hand-in-hand with the growth of its aviation infrastructure, and today, one sees another bold step in that journey.
“The announcement of phase two of Dubai World Central – Al Maktoum International Airport’s (DWC) expansion, representing a substantial investment of AED128 billion, marks the start of a huge investment of resources by our many stakeholders in designing and building a state-of-the-art airport that will provide a quick, convenient, and high-quality 21st-century experience for our customers. This further solidifies Dubai’s position as a leading aviation hub on the world stage,” Griffiths commented.
He said DXB will continue to serve as the primary hub, in the meantime, while the new airport project is being constructed, meeting the needs of 100 million plus guests over the next few years as phase two of DWC takes shape.
In an exclusive interview with Poonam Chawla, Associate Publisher of Air Cargo Update, Amadou Diallo, CEO of DHL Global Forwarding Middle East & Africa, shares insights into the dynamic landscape of logistics. From the impact of Artificial Intelligence (AI) on supply chains to sustainable practices in packaging and transportation, Diallo delves into key trends and DHL’s pioneering role in driving innovation across the industry.
Artificial Intelligence is at the forefront of technological developments. Could you give specific examples of how AI impacts logistics and supply chains?
Research indicates that 51% of businesses harness AI primarily to bolster innovation and 47% use it to enhance customer experiences. However, only a quarter of these organizations recognize AI’s potential to unlock new revenue streams. This suggests a substantial underestimation of AI’s role as a driver for both top-line growth and market differentiation.
In the logistics sector, AI is revolutionizing logistics and supply chain management by enabling efficiency in critical business operations, leading to faster delivery times and reduced fuel costs.
In regions like the Middle East, the integration of AI into supply chain practices is setting the stage for a major overhaul of the logistics sector. By adopting AI-driven tools like predictive analytics and automated inventory management, companies are not only boosting operational efficiency but are also positioning themselves as competitive players on the global stage. This strategic adoption of AI marks a critical shift from traditional methods to a more agile and data-driven approach in logistics.
The imminent future will be driven by digitalization and sustainability. What trends do you see in both that benefit the logistics industry?
The logistics industry is rapidly evolving under the dual influences of digitalization and sustainability. Artificial Intelligence (AI) is a major trend, already implemented by 36% of businesses to enhance supply chain operations, with projections suggesting a productivity increase of over 20% by 2035. In the Middle East, AI’s impact is pronounced in e-commerce markets like the UAE and Saudi Arabia, driving advances in predictive analytics and automated warehousing. Alongside AI, supply chain diversification is gaining traction as companies strive to mitigate risks from global disruptions by developing more flexible and strategically located logistics networks. Sustainability is also a key focus, reflected in services like DHL’s GoGreen Plus, which promotes the use of sustainable fuels and electric vehicles to reduce GHG-emissions in supply chains. The Internet of Things (IoT) is set to further revolutionize the industry with smart labels that enhance visibility and improve inventory management through real-time data transfer using technologies like QR codes and RFID.
Concurrently, as digital vulnerabilities increase, cybersecurity is becoming a priority, with the sector enhancing its defenses against threats such as phishing and ransomware to protect sensitive data and maintain operational integrity. These trends collectively herald a transformative period for logistics, emphasizing efficiency, security, and environmental responsibility.
As these technologies and strategies become more embedded in the logistics infrastructure, they promise to significantly reshape the industry landscape, especially in regions actively embracing digital and sustainable practices.
As e-commerce grows globally, the need for sustainable packaging and transportation becomes central; tell us about trends in this direction and how DHL is leading in this realm.
As global e-commerce expands, the importance of sustainable packaging and transportation is increasingly becoming more evident. The logistics industry, grappling with the challenges of excessive packaging waste from materials like plastic shrink wrap, is pushed further by high return rates and specific demands from products such as meal kits that require extensive protective packaging.
In response to these challenges, the industry is shifting towards more sustainable solutions. Innovations in biodegradable materials are emerging, with companies adopting starch-based foams, tree pulp, and plastics derived from sugarcane. These are complemented by simpler, cost-effective strategies such as reusable packaging and incentives for consolidated deliveries, which significantly reduce waste.
DHL is leading this transformative shift by implementing advanced technologies to optimize packaging efficiency. We use algorithm-driven tools for precise box-sizing to maximize space utilization and minimize waste, as our research showed that 24% of package volume is empty space. It also accounts for up to 50% of otherwise unnecessary shipment space. Furthermore, DHL is transitioning from traditional paper labels to smart technologies like OLED and e-ink, enhancing package tracking and reducing the incidence of damaged goods returns.
In line with our company’s purpose to connect people and improve lives, DHL has also launched the GoTrade initiative, fostering sustainable and inclusive trade. This initiative targets expanding globalization’s reach and benefits. It is designed to increase the number and volume of SMEs trading across borders, including teaching them about the benefits of cross-border trade and assisting them with navigating the complexities of customs clearance.
In addition to these sustainability advances, our collaboration with the United Nations Industrial Development Organization (UNIDO) exemplifies our commitment to leveraging our network for broader social and economic impact. This partnership launched the “Innovation for Food Systems Transformation” global innovation challenge, aimed at supporting Agro-Tech and empowering small farmers and SMEs. This initiative serves as a beacon, seeking out trailblazing technology providers who have designed sustainable solutions within agribusiness supply chains and logistics, enabling participants to meet the demands of emerging markets, contribute to job creation, particularly in Africa, and reduce food waste in African markets.
DHL is also making substantial investments in sustainability beyond packaging. Over the next few years, DHL plans to invest 7 billion euros in measures to reduce its CO2e emissions. This includes expanding our electric vehicle fleet to cover 60% of last-mile deliveries and increasing the use of sustainable fuels across all transport modes to cover more than a third by 2030.
These efforts not only meet consumer demands for sustainability but also enhance operational efficiencies, significantly contributing to the development of a circular economy within the logistics sector.
Tell us about the DHL Innovation Center Network, giving examples of innovations that have emerged from these Centers and how they have helped DHL in particular and the logistics sector in general.
The DHL Innovation Center Network was initially established as a platform to showcase DHL’s logistics capabilities but has since evolved into a crucial hub for collaboration and idea exchange among industry experts, customers, and partners. These centers are instrumental in driving innovation within DHL and the broader logistics sector.
Our DHL Middle East and Africa (MEA) Innovation Center in Dubai, introduced in 2021, serves as a collaborative space where business leaders, logistics experts, academics, and startups develop innovative logistics solutions. The center showcases interactive exhibits on big data analytics and the Internet of Things (IoT), inspiring innovative approaches to logistics practices.
The DHL Innovation Center Network has been instrumental in fostering a culture of innovation across the logistics industry. A prime example of this is the DHL Fast Forward Challenge MEA. This flagship initiative serves as a testament to our dedication to finding and promoting groundbreaking solutions that tackle global sustainability issues. In its third edition this year, this event, historically held at the premises of the Innovation Center, will take place at the Museum of the Future in collaboration with the Dubai Future Foundation. The challenge provides a dynamic platform for thought leaders and innovators to collaborate and contribute to sustainable development efforts in the region. With each year, the challenge evolves, reflecting our enduring pursuit of excellence and sustainability in logistics.
Such initiatives from the DHL Innovation Centers have significantly contributed to advancing technological and operational efficiencies, not only for DHL but for the logistics industry at large, enhancing the way goods and information are managed and transported globally.
Still recovering from the onslaught of the COVID-19 pandemic while confronting other challenges, the world now heavily relies on the logistics industry to facilitate global business activities.
The industry has become the lifeblood of global trade in recent years it has massively grown in value to €8.4 trillion in 2021 and is projected to further grow to over €13.7 billion by 2027, according to experts.
With the emergence of smart technologies and the so-called fourth industrial revolution, the industry is up for the challenge of embracing digitalization.
But while many countries have begun their digital transformation more than a decade ago, many are also still struggling to keep up with the changing times due to scarce resources and skilled workforce.
Vineet Malhotra, co-founder and director of Kale Logistics Solutions, one of the world’s most trusted global cloud-based tech providers for some Fortune 500 companies worldwide, offering a comprehensive suite of tech solutions for the logistics industry, says there’s no way to move forward but to embrace digitalization.
“There are two buzzwords in the overall global supply chain these days. One is sustainability. The second buzzword is digitalization. It means bringing in some solutions to empower the industry to digitize itself to seamlessly connect with others and streamline their operations,” Malhotra told Air Cargo Update.
Malhotra’s company which was formed in 2010 was among India’s pioneers in the tech industry that specializes in logistics and the global transport industry. Of its more than 5,500 clients worldwide, over 50 are airports, and 50 are seaports around the world.
Kale is helping the global logistics industry transform its operations with digital technologies.
“15 years back, when we were looking at it, we saw the need for digitalization,” says Malhotra, an electronics communications engineering graduate with post-studies in management. “We (collaborated) with the Air Cargo Agents Association of India (ACAAI). The association became the executive sponsor of the project to build a cargo community system. They didn’t put any money. But they supported our idea. We had our break at Mumbai Airport when it was automated.”
Today, Kale’s solutions are used in more than 50 airports across the world and to more than 50 seaports worldwide in addition to thousands of other companies in logistics, and air freight, among many others in the transport sector.
“Digitalization is essential for businesses to remain competitive,” said Malhotra. Digitalization is indeed no longer an option for businesses in the global logistics industry: It’s a necessity to streamline the process and save time and money.
Apart from software solutions, many companies in the industry have introduced smart technologies in their system which include automated storage and retrieval systems (AS/RS), automated sorting systems, de-palletizing/palletizing systems, conveyor systems, automatic identification and data collection (AIDC), order picking), software, and services), end-user industry (food and beverage, post and parcel, groceries, general merchandise, apparel, manufacturing), among other things.
Opening doors for innovations with collaboration
Digitalization opens doors for innovation in the logistics industry. Emerging technologies like artificial intelligence, big data analytics, and the Internet of Things (IoT) have the potential to revolutionize logistics operations.
By leveraging these technologies, companies can develop predictive maintenance strategies, optimize transportation networks, and create data-driven solutions for complex logistics challenges. This focus on innovation fosters continuous improvement and paves the way for future growth.
At the two-day field meeting and conference hosted by the International Federation of Freight Forwarders Associations (FIATA) RAME (Region Africa Middle East) and the UAE National Association of Freight and Logistics (NAFL) held at the Atlantis Dubai in March, Kale signed a Memorandum of Understanding (MoU) with NAFL agreeing to help developing digital solutions to streamline processes and data analytics to facilitate global trade.
The agreement aims to further drive digitalization in the UAE logistics sector by enabling NAFL stakeholders, members, and the private sector in general to improve efficiency and transparency and benefit from a digital platform that supports operational processes and data sharing between stakeholders and facilitates the paperless exchange of trade-related information. The platform, which will initially focus on the UAE market, aims to improve trade flows within the region and capitalize on the strategic location and connectivity of the country and the entire RAME region.
“The FIATA-RAME conference was a valuable platform to foster collaboration and explore innovative solutions. The meeting identified several key areas for improvement in the regional logistics sector. One of our focus areas is harnessing the opportunities offered by digitalization, particularly in the private sector, which includes many of our members,” said Nadia Abdul Aziz, President of NAFL.
“To this end, our partnership with Kale Logistics will help private sector players to streamline processes through digitalization, measure sustainability data and simplify business processes.
In the meantime, we are also talking to entities, which include the National Information Centre, global audit experts and collaboration between the government players and the private sector to improve business and improve the sustainability of the sector. We aim to turn the challenges in the industry into opportunities, improve the flow of trade in the region and utilize the connectivity of the UAE and the region to overcome the current challenges,” she explained.
The two-day event brought together key players from the African and Middle Eastern logistics and global experts from the industry, serving as a crucial platform for knowledge sharing, forging partnerships, and charting a path toward a more resilient and collaborative logistics landscape in Africa and the Middle East.
According to Mordor Intelligence, the Logistics Automation Market size is estimated at USD 75.24 billion in 2024. It is expected to reach USD 120.63 billion by 2029, growing at a CAGR of 9.90% during the forecast period—2024-2029.
Australia’s freight and logistics market size this year is valued at USD 94.10 billion. Growing at a CAGR of 3.9% during the forecast period (2024-2029), it is estimated to reach USD 113.94 billion by 2029. (Mordor Intelligence)
It has been a turbulent year for airfreight transporters in Australia yet there is optimism the country’s freight and logistics market will steadily grow in the coming years.
During the COVID-19 pandemic, just like the rest of the world, Australia’s aviation industry suffered from the global travel ban, reducing tremendously belly-hold capacity for cargo. Yet, it’s air freight industry carried through the tough times, delivering vital healthcare supplies and other basic needs throughout the country.
Faced with weaker tonnage volumes, global supply chain disruptions pushed airfreight prices to record levels. But from 2023, airfreight prices have begun to normalize as global supply chain disruptions eased, while volumes remain below pre-pandemic levels.
In the past 35 years, Australia’s road transport activity has grown significantly due to expanding road networks and increased economic activity, resulting in a seven-fold increase in road freight between 1970 and 2007 and an eight-fold increase between 1970 and 2020.
Australia’s economy relies heavily on freight transport to move raw materials, semi-processed goods, and finished products. During the COVID-19 pandemic, the freight industry managed to maintain key supply chains, demonstrating its importance and resilience.
Australia’s freight and logistics market size is currently estimated at USD 94.10 billion this year. It is expected to reach USD 113.94 billion by 2029, growing at a CAGR of 3.9% during the forecast period (2024-2029) (Mordor Intelligence).
A representative from Qantas Freight who asked to be anonymous but agreed to provide a comprehensive outline of how Qantas Freight managed to establish itself as the leader in the Australian air cargo industry talks to Air Cargo Update.
Strong focus on efficiency and reliability
With a strategic approach and a strong focus on efficiency, reliability, and customer satisfaction, Qantas Freight has secured its position as a leader in the Australian market.
By continuously investing in cutting-edge technologies, expanding its global network, and providing top-notch services, Qantas Freight has set the standard for excellence in air cargo transportation.
One of the oldest airlines in the world, Qantas Airways Limited was founded in Winton, Queensland, on November 16, 1920.
Originally named Queensland and Northern Territory Aerial Services Limited, the airline operated its first flight in 1922 with the first scheduled services connecting regional towns in Queensland.
The airline quickly expanded its operations to include airmail and eventually pioneered long-distance flights across the globe.
What hasn’t changed over the years is their commitment to safety and customer service. According to the Qantas Freight interviewed in this article, any discussion about the company’s domination in the air cargo industry cannot ignore its strategic expansion and acquisition initiatives.
Over the years, Qantas Freight has strategically expanded its network to cover key international trade routes, connecting major cities worldwide. Through a series of strategic acquisitions and partnerships, Qantas Freight has strengthened its market presence and service offerings, solidifying its position as a global leader in air cargo transportation.
Qantas Freight spokesperson said, “Qantas Freight is Australia’s largest independent air freight carrier and has been handling a diverse range of goods from mail and e-commerce to pets and fresh produce and bulkier specialist items like cars, helicopters and farm machinery for more than a century. Our services provide a critical link in domestic and international supply chains, moving 4000 daily shipments to more than 500 destinations worldwide.”
Advanced Logistics and Technology Infrastructure
Qantas Freight’s advanced logistics and technology infrastructure play a pivotal role in its dominance in the air cargo industry.
Through cutting-edge technology and streamlined logistics processes, Qantas Freight ensures seamless operations and real-time tracking of shipments.
This enhances efficiency and enables the airline to meet the evolving needs of customers in a highly competitive market. Technology Infrastructure; Advanced tracking systems, and; Real-time data analytics.
Infrastructure:Modern warehouses and handling facilitiesState-of-the-art security systemsSpecialized cargo handling equipmentIntegrated IT systems for seamless operations
“Advanced logistics and technology infrastructure are integral pillars of our strategy, enabling Qantas Freight to deliver unparalleled efficiency and reliability in the air cargo industry.”
With the largest footprint of terminal infrastructure in the region, Qantas Freight is creating world-leading digital solutions to evolve the traditional ground handling experience.
Express check iPad kiosks.
Integrated online booking, lodgement, and collection processes via mobile apps to remove paper processing wherever possible. Real-time tracking and notifications to provide shipment visibility at every stage of the terminal process.
Integrated scales and labelling systems are in place at all our terminals, improving accuracy for safer operations.
“Our fleet of dedicated freighter aircraft, including B737F, B767F, A321P2F, and A332P2F, serves as the backbone of our cargo operations, seamlessly complementing our belly space capacity for both domestic and international flights.
“With strategically positioned cargo terminals equipped with state-of-the-art tracking technologies, we ensure swift tail-to-tail connections and real-time visibility of freight at every stage of its journey.
“Our specially trained teams, stationed at major airports across Australia, bring expertise in complex load build-ups and handle a diverse range of freighter aircraft types with precision and efficiency.”
Meeting Online Shopping Demand
To meet e-commerce demand from its customers across Australia, Qantas Freight is in the works to add six Airbus A321 aircraft to its domestic fleet.
A structural shift towards online shopping has driven a step change in cargo volumes for the national carrier’s freight division since COVID-19 began.
Five Boeing 737 freighters approaching the end of their economic lives will be replaced by six A321s between the beginning of the 2024 calendar year and the middle of 2026.
In comparison with the older 737 freighters, the A321 freighters can carry 23 tons of cargo, nine tons more, and consume 30% less fuel per ton.
“Demand for Qantas Freight services has been stronger than ever in recent years thanks to online shopping trends, and our fleet investments will ensure we’re able to continue to meet this rising demand well into the future,” the spokesperson said.
According to the then CEO of Qantas Group Alan Joyce, who stepped down from his CEO role in September 2023, “Qantas Freight has been one of the standout performers for the Group during the pandemic as Australians rapidly shifted to online shopping. While some of that shift is temporary, demand remains well above pre-pandemic levels even with the lifting of almost all COVID-related restrictions.
“This is one of the largest ever investments in our domestic freight fleet, which will enable Qantas Freight to capture more of that demand and will provide the opportunity to help Freight further grow revenue and earnings.
“The first three A321P2F have been a fantastic addition to our fleet and operating a single type of narrow-body aircraft in the future will enable us to generate further operational efficiencies and significantly reduce emissions per tonne of freight flown.”
Looking Ahead
Looking ahead – initiatives being rolled out across Qantas Freight include: A new capacity management system to ensure they maximize uplift on capacity-constrained routes.
Investments in a new fleet of fire-retardant unit load devices – game-changers in the industry which further add to onboard safety.
Working with airport authorities across the nation to develop plans for terminal infrastructures from 2025 including Western Sydney.
Australia’s new cargo hub
Western Sydney International Airport (WSI) will fulfill the growing demand for aviation capacity in the Sydney basin and enhance accessibility to flights for people in Western Sydney as well as provide economic opportunities for businesses.
The airport will serve domestic and international flights from 2026, making it one of Australia’s most significant infrastructure projects in decades.
In addition to the greenfield airport, there is a 3.7-kilometer runway, terminal, and airport facilities that will initially serve up to 10 million passengers a year and a capacity of 220,000 tons of cargo annually.
WSI is Australia’s first co-designed cargo precinct.
There is no doubt that WSI will become one of Australia’s most important cargo hubs. Aside from motorway access to Western Sydney’s logistics centers and 24/7 operations, the Cargo Precinct planned has a crucial element that Sydney’s been lacking: growth room.
Air cargo, logistics, support, and commercial uses will be accommodated at WSI Cargo Precinct, both immediately and over time.
A flexible, future-proofed layout will be provided by the WSI Cargo Precinct to meet the demands and trends of the future. It is planned to be one of the best cargo precincts in the world that will be thriving, safe, sustainable, and a great place to work and operate.
Safe Pet Handling
When it comes to the safe and comfortable travel of pets and other animals, Qantas Freight prioritizes their welfare above all else.
From dogs and cats to rabbits, and domestic birds, Qantas Freight ensures their journey is smooth and stress-free.
“Every year, we transport thousands of beloved pets and animals to destinations spanning Australia and beyond, ensuring their safe and comfortable journey every step of the way. Our expertise extends beyond household pets to encompass the specialized movement of diverse animals, from reptiles to racehorses, zoo residents, and marine life destined for research or aquariums, all of which demand meticulous handling and care.
“From fresh perishables like food and flowers to critical pharmaceuticals such as medicines and blood samples, as well as highly secure items like delicate artworks and custom goods like racing cars, we handle a wide range of cargo with precision and reliability.”
With Qantas Freight, pet owners can rest assured knowing that their beloved companions are in good hands throughout the entire travel process.
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