With 42 million passengers welcomed at Munich Airport in 2016, it is no undeniably one of the busiest in Europe and all indications point to greater foot traffic in the coming years.
It has embraced modern technology to run smoothly its systems and day-to-day operations with the help of about 9,000 skilled men and women who work day and night at the airport.
Behind this workforce is the bespectacled Dr. Michael Kerkloh who has been at the helm of modern and other inspiring innovations at Germany’s enviable airport, which Skytrax has consistently awarded with the coveted Five-Star Airport accolade, the only one in Europe.
Dr. Kerkloh happily interacts with everyone at Munich Airport unmindful of his status and even sacrifices his own feelings to promote harmony where necessary.
Case in point: He personally welcomed and congratulated the FB Bayern Munich team when it won the Champion Leagues Finals in 2013 despite being a die-hard Borossia Dortmund fan.
In an interview with Air Cargo Update, Dr. Kerkloh shared he began his career in the aviation industry in 1995 at Hamburg Airport after earning his economics degree and doctorate in political science.
With now more than 22 years of solid industry experience, there is no doubt Dr. Kerkloh is a force to be reckoned with, with strong commitment to push for reforms when necessary.
Apart from putting Munich Airport in an enviable position, Dr. Kerkloh’s most recent legacy is successfully hurdling legal obstacles to the proposed third runway at the airport.“Believe in what you do and never give up – these are my principles especially when it comes to our next crucial project for the airport’s and the region’s future: the construction of a third runway,” said Dr. Kerkloh when asked about his view on failures and business principles.
“The construction of the third runway, which has been officially approved and has overcome all court challenges, is now waiting for approval by our shareholders,” added Dr. Kerkloh who was also named in July as president of Airports Council International (ACI)-Europe.
Whenever he finds time, the personable aviation executive uses it to meet up with friends, go for sports or create music.
Yes, behind Dr. Kerkloh’s serious demeanor is a musical lover who plays with a band, write songs and regularly going to concerts.
“When I have some free time, I am happy to meet friends, go for sports or make music. Music plays an important role in my life – I play together with a band, compose songs, and go out to various live concerts,” he said.
Dr. Kerkloh even found an inspiration to compose a song for Munich Airport’s 25th anniversary which is found on YouTube.
“Music also plays an important role at my work place – Munich Airport. I even composed a song at the occasion of the airport’s 25th anniversary:
https://www.youtube.com/watch?v=oyFPQwG7au0. Further, we produced a lipdub music video with our employees: https://www.youtube.com/watch?v=-lVAAZ6OWQs. And last but not least Stefan Aaron composed a Munich Airport song as part of his Orange Piano Tour: https://www.youtube.com/watch?v=W7cEJqIMMPQ,” he shared.
Dr. Kerkloh’s love for music seems to be jelling well with Munich Airport’s melodious success.
“At Munich Airport, music is always in the air,” he said with a smile.
– Marc Llistosella, President and CEO of Mitsubishi Fuso Truck and Bus Corporation and Head of Daimler Trucks Asia.
USO e-Canter, the world’s first all-electric light-duty truck was launched in New York in September with 500 units up for deliveries over the next two years, signaling the start of the trucking industry’s switch for greener vehicles with less carbon emission and operating costs than fuel-powered trucks.
Mitsubishi Fuso Truck and Bus Corporation (MFTBC)—part of Daimler Trucks—the global market leader with truck brands like Freightliner, Mercedes-Benz and FUSO–says the electric trucks are up for deliveries this year in the US, Europe and Japan with larger scale production intended to start in 2019.
“In times when everybody is talking about electric trucks, we are the first to actually commercialize a series produced all-electric truck. Having a long history in alternative drive-trains, we are proud to step into this new era. Our FUSO eCanter comes with years of customer testing, and the assurance of parts, services, and warranty through our global FUSO dealership network,” said Marc Llistosella, President and CEO of Mitsubishi Fuso Truck and Bus Corporation and Head of Daimler Trucks Asia.
“Our new FUSO eCanter now addresses the increasing global demand for products to meet and exceed high CO2 emission standards. It offers an attractive and cost-effective alternative to combustion engines and makes electric trucks key to the future of inner city distribution,” Llistosella added.
UPS and NYC NGOs first to order
United Parcel Service (UPS) and four prominent NGOs in New York are FUSO’s first customers for its newly-launched electric trucks.
UPS said it will use the zero-emission trucks with an eye to moving its fleet toward being more sustainable in doing urban logistics.
“At UPS, we constantly evaluate and deploy advanced technologies that enable sustainable, innovative solutions for our fleet. Electric trucks make our fleet both cleaner and quieter, adding to our already more than 8,500 alternative drivetrain vehicles in service today. We have a long-standing global relationship with Daimler, and we welcome the opportunity to trial the Fuso eCanter as UPS continues to realize the benefits of electric trucks,” said Carlton Rose, President, Global Fleet Maintenance & Engineering, UPS.
In coordination with the office of New York Attorney General Eric Schneiderman, FUSO also will supply a fleet of local zero‑e mission FUSO eCanter trucks to well-known New York based not-for-profits, including: Wildlife Conservation Society, New York Botanical Garden, Habitat for Humanity New York City, and Big Reuse Brooklyn.
FUSO says the all-electric light-duty truck is MFTBC’s answer to the public’s need for a zero-emission, zero-noise truck for continuously increasing inner-city distribution.
In addition to being an eco-friendly vehicle, it is cost-efficient and economical for users, as already proved within customer tests in Europe. The FUSO eCanter has a range of 100 kilometers and a load capacity up to three and a half tons – depending on body and usage.
The vehicle´s electric powertrain contains six high voltage lithium ion battery packs with 420 V and 13.8 kWh each. In comparison with a conventional diesel truck, it offers savings up to 1,000 Euro per 10,000 kilometers on operating costs.
Intensive research and testing
FUSO says its new electric trucks are a revolution several years in the making: At the 2010 IAA Commercial Vehicle Show in Hannover, Germany, FUSO presented a first prototype of an electrically powered Canter E-Cell, leading into a pre-series production for testing purposes in 2014.
The FUSO eCanter benefits from extensive experience of customer trials conducted in Portugal and Germany with the pre-series vehicles between 2014 and 2017.
In May of 2017, MFTBC announced its first commercial customer for the new in-line series production vehicle in the Japanese market. Seven-Eleven Co., Ltd. will be operating 25 units of the eCanter in their fleet.
After unveiling the first charging station in Japan and kicking off production at the OEM’s factory in Portugal, today’s global launch event underlines the commitment of both FUSO and New York State to developing & embracing sustainable and reliable transportation solutions to benefit society and the planet.
After years of research and intensive customer testing, the FUSO eCanter will be fully integrated in the production line for the conventional combustion Fuso Canter truck.
This past July, MFTBC celebrated the start of production of eCanter in Tramagal, Portugal. The production plant will assemble all eCanter vehicles for the European and U.S. markets. The Portuguese government has been continuously supporting the development of the eCanter since the early stages in 2010 until today, and for the future to come.
With more than 1.3 billion people, India’s domestic market is considered one of the world’s biggest.And its potential for economic growth is getting bigger and so are industries driving business activities like air cargo.
Now ranked as the world’s 6th largest economy and the third largest in terms of purchasing power parity, India’s cargo volumes are projected to grow by 10 million tons by 2027, according to a 2016 National Civil Aviation Policy report.The Airports Authority of India (AAI)reported air freight handled at Indian airports grew more than 20 times from 0.08 million metric tons in 1972-73 to 2.5 million metric tons in 2014-15, and its compound annual growth rate(CAGR) was 8.8 percent from 2013 through 2017.
But officials all agree the country has to initiative more reforms to enhance and speed up activities in the air cargo industry which plays a vital role in propelling economic development in any country.
Airlines, air cargo terminal operators,ground handling service providers,integrated express service providers,forwarders, domestic cargo transport service providers and custom brokers are the key players in the entire air cargo
supply chain.
Reforms needed
Measured in million ton-kilometers,World Bank data showed air freight transported by India went up from 96.3 million ton-kilometers in 1970 to 1,833.8 million ton-kilometers in 2015.
Forecast of air cargo volume for India
suggests that the domestic and international air cargo output isexpected to grow by eight to 10 times the present level in the next 20 years.
catering to thegrowth of this magnitude would involve expansion of infrastructure facilities, simplification of procedures and adpotion of Information technology/automation besides development of human
resources in the sector.
Committee on ACCS
To accelerate air cargo growth, the Ministry of Civil Aviation had set up a Committee on Air Cargo Community System (ACCS) composed of various stakeholders, including customs authorities, and it was decided to grant approval to AAI for appointment of consultant to prepare a Detailed Project Report (DPR) for the development of a uniform and integrated web-based ACCS in the country, based on the
Committee’s recommendations.
Dr. Renu Singh Parmar, senior advisor at the Ministry of Civil Aviation, said India as one of the fastest growing large economies of the world, has its air cargo industry poised for significant growth thanks to the landmark government initiatives like “Make in India”.
But in order to support sustainable growth, it is of paramount importance that right physical and digital infrastructures are put in place in the country to facilitate ease of doing business.
The air cargo logistics industry has several stakeholders vis-a-visexporters, importers,freight forwarders, customs brokers, customs, security agencies, airlines, airports, ground handling agents, bonded truckers,transporters, ramp agents,courier & express operators, chambers of commerce, etc.
According to the International Aviation Transportation Authority (IATA), each air cargo shipment on average carries around 30 types of documents and well over 100 copies, thus, resulting intosignificant documentation overheads,increased dwell times and supply chain
opaqueness.
‘Ease of doing business’
To facilitate the ‘Ease of Doing business’in India, Dr. Renu said there is an urgent need to put in place an electronic platform to digitize interactions among key stakeholders.
This electronic platform can allow the reusability of data, thereby, eliminating duplicated at a entry, reducing unnecessary paperwork by giving authorized access to data to relevant supply-chain stakeholders as well as providing visibility, reducing inventory and other transaction costs related to the cargo movement.
Dr. Renu said the Ministry of Civil Aviation (MoCA) understands this need to have a single window for air cargo community which will interface with Indian Customs single window and facilitate seamless movement of goods and information.
Bringing down transaction costs
One of the issues that the ACCS committee addresses is how to bring down transaction costs in India which are amongst the highest in the world.
To bring efficiencies, the ACCS was setup. Currently, some airports/cargo agent’s association have created their own cargo community systems for stakeholders with varying EDI capabilities that facilitates information exchange over air cargo logistics value
chain.
However, in the current system there is lack of efficiency, transparency and consistency across the supply chain,which results in several pain areas for the different stakeholders.
The information exchange is many-tomany resulting in complex/duplicate processes. Further, there is no uniformity for message interface, data harmonization and end-to-end tracking.
Single window system
The Committee said a Single Window system for uniform interface between all the stakeholders of the country’s air cargo community using international standards is highly desirable as in the current system there is lack of efficiency,transparency and consistency across the supply chain,which results in several pain areas for the different stakeholders.
The Committee recommended that UN/CEFACT Model 2 i.e. “Single Automated System for Collection and Dissemination of information via interfaces with existing systems” be used for the ACCS.
In this model, there is a single system that collects,converts and disseminates digital data about shipments and the data has to be
submitted only once by trade which gets disseminated.
The existing systems can be interfacedin this model and new requirements would be built-in/integrated directly in the ACCS.
As regards funding options for ACS, the committee said the ACS will be a very critical system for the future of air cargo growth in India. The implementation of the same shall be well planned and done in phases. The system shall be made self-sustaining and the mechanism/modalities for the same may be decided by the core Committee/Governing Council.
The Committee suggested bringing on board a reputed consultant with requisite experience of Indian/global air cargo industry to prepare a Detailed Project Report (DPR) and based on the agreed scope of services, the funds requirements shall be identified.
The ACCS is going to be a single window electronic platform for all stakeholders of the air cargo value chain to interact with each other digitally thereby eliminating unnecessary documentation, delays, ambiguity on supply chain and improving ease ofdoing business for the air cargo sector.
Under the e-trade program of Ministry of Commerce and Industries, in a meeting held on 09th of October 2009, it was identified that a web based air cargo community shall be developed for the Indian Air Cargo industry and Ministry of Civil Aviation was appointed as a nodal agency for implementing the same.
Similarly, in 2012, it was decided to set up a Working Group on Air Cargo/Express Service Industry in the Ministry of Civil Aviation to recommend policy initiatives to address important issues considering the long-term perspectiveand future growth potential in India.
The Working Group was chaired by then Economic Adviser, Ministry of Civil Aviation and represented by members from all the key stakeholders of the Air Cargo Logistics industry in India. The working group submitted its Report“Air Cargo Logistics in India” on 7thof May, 2012 clearly articulating the need of a common platform for facilitating seamless cargo and information flow.
The NCAP has also articulated the vision for the air cargo industry in India and has set guidelines for key initiatives to be taken in the industry to ensure global competitiveness and sustainable growth of the Indian air cargo industry.
The ACCS will be a very critical system for the future of air cargo growth in
India. The government is planning implementation of the same in phases and India should be able to accelerate its air cargo growth soon.
Transporting animals is an age-old practice and today’s modern, tech-savvy world allows them to be transported in the most humane, safe and secure manner.
Carriers describe this role as “very challenging” with the obligation to take into account that all species are different, needs specific attention, storage and handling conditions.
With animal lovers finding it easier to shop around online for pets—be it dogs or cats—and flying them over, the demand for transporting live animals is increasing.
All airlines—commercial passenger or cargo—that allow live animals on their flights follow strict guidelines in transporting them.
We spoke to a couple of airlines to find out what goes on behind before and during the transportation of animals.
American Horse Council reveals that at present there are 9.2 million horses across the US involving approximately 4.6 million people as horse owners, care takers, employees and volunteers.
According to the council, this industry has direct impact on the economy of $39 billion and if other factors such as suppliers, spending by spectators is taken into account, it may exceed $102 billion.
Hungary, a traditionally livestock exporter country, especially of horses, cows or sheep, now found new market opportunities for horses in China as the country’s appetite for breeding horses grows.
Pets and livestock
The most commonly transported animals by all airlines remain cats, dogs, live lobsters and crabs, including day-old chicks, horses and some zoo animals such as wolves, leopards, cheetahs, etc., except for brachycephalic or snub-nosed breeds, which cannot be transported due to issues involved with their breathing.
Coyne Airways has transported more sheep and cattle with quite a lot of working dogs, and also exotic animals in connection with the repopulation of Georgia’s Tbilisi Zoo after the devastating flood that hit in 2015. The airline is also seeing surges in animal movements around major holidays and festivities.
Budapest Airport transported a total of 3,000-4,000 animals so far in 2017. Half of them were smaller animals, such as cats and dogs that were transported to different countries all over the world. The other half was covered by special charters transports.
Jozsef Kossuth, Cargo Manager, Budapest Airport, said: “Special charters included the transport of cows to the Middle East and Russia, calves to Tel Aviv, and even a baby hippo with the help of Emirates Airlines, in addition to the 14 racehorses that were transported in the cargo hold of Cargolux’s modern Boeing 747-8F; animals of this size can only be transported by air over such long distances, and only on board large aircraft types.”
Animal transport regulations
Regulations and global standards such as the IATA Live Animals Regulations (LAR) ensure the transport of animals by air is conducted in a safe, humane and cost-effective way.
All the details of handling, feeding, watering, health and hygiene, personal supervision, information and protocols for the flight crew, are very well regulated. If staff is well trained and all the instructions are followed, the transport is no less comfortable for the animals than for the normal passengers.
Kossuth responds, “Our cargo handling companies organize the transport in line with international and local live animal regulations. The animals spend the minimum time necessary at the airport before being boarded on the aircraft.”
Coyne Airways CEO Larry Coyne said, “Air transportation can be extremely stressful for animals and we try our best to minimize this and make sure that everything goes as smoothly as possible. That means tight coordination between all the actors in the supply chain to ensure that all the I’s are dotted and the t’s are crossed, and a lot of active liaising before, during and after any movement.”
“For example, we spend quite a lot of time with clients making sure that they understand the relevant requirements and concerns for transporting animals, and we also engage the relevant ground handlers and crew at an early stage so that they are well-prepared. On the actual day, our Operations Supervisors perform final checks and go through a series of checklists to cover a variety of things from documentation to ensuring there is not a major swing in temperature for the animals on their journey.”
Emirates Senior Vice President Cargo Operations Henrik Ambak noted, “The transportation of live animals requires expert and sensitive handling with full compliance with the rules laid down in national laws, IATA’s (LAR) and other regulations such as (CITES). When it comes to actual shipment, various considerations also need to be taken into account, from the type of animal, breed, age and possible temperature requirements.”
In 2013, Etihad Airways became a member of the International Pet and Animal Transportation Association to strengthen its position as an accredited airfreight carrier of live animals, which recognizes the airline as a responsible carrier at an international level. The airline is also committed to compliant with the rules and regulations related to import and export of live animals worldwide, including IATA’s (LAR).
Furthermore, the airline is also a member of the UK Pet Scheme, allowing the carrier to carry pets from both London and Manchester.
Temperature specifications
Most airlines follow three types of temperature zones which vary between 2°C and 25°C. While many of the animals feel comfortable at temperatures ranging between 15-25°C, some animals like lugworms or certain types of reptiles require their environment to be kept a little cooler.
For the transportation of live tropical birds, hatching eggs and horses, Luxair Cargo follows the requirements of the shipper and carrier, as different types of temperatures are required for their transportation.
David Kerr, Vice President Etihad Cargo, noted, “Temperature requirements vary from animal to animal. We ensure that animals are kept within the appropriate temperature-controlled environment, from the pre-flight storage facility at our hub in Abu Dhabi, or onboard one of our freighter or passenger aircraft.”
According to Emirates Airlines, the following temperatures specifications are mostly derived from IATA’s LAR and are followed to the letter when transporting live animals on their aircraft.
Dogs 15 – 25 degrees
Cats 18 – 22 degrees
Gazelle 15 – 25 degrees
Lion/Tiger 20 – 29 degrees
Guinea Pigs 15 – 25 degrees
Laboratory mice 15 – 20 degrees
A day old chicks 18 – 23 degrees
Monkeys 18 – 30 degrees
Kangaroo 20 – 25 degrees
Special Training
Patrick Silverio, Luxair Cargo’s Special Handling Manager, said, “All our staff receive deep training by independent trainers as well as from the Veterinary Authorities. Most of our dedicated staff have already animal experience in their previous jobs be it a farmers or in animal protection tasks.”
“Due to the variety of animals that the airline carries, we ensure that our ground handling teams are knowledgeable about the requirements, as this is a specialized area of cargo transportation,” said Kerr. “In line with the IATA rules, all personnel involved in any aspect of the booking must be IATA’s LAR certified.”
“This means that all our personnel have attended and successfully passed a three-day training course with IATA, ensuring they are equipped with the appropriate skill sets & understanding to work in this area of the business. We also work with experts. Take horses for e.g. we work with their trainers and owners to ensure we can meet the specific requirement of that particular horse. The success of this area of the business has been built through adding the personal touch that the owners want.”
Safety precautions
AirBridgeCargo supplies special containers, including horse stalls and kennels, to ensure the comfort and safety of animals during loading and unloading and, of course, the flight. Special ground handling facilities are also available at majority of their online stations.
Air Bridge Cargo’s General Director Sergey Lazarev, said, “Aside from our proven expertise in safely transporting live animals, another key reason why customers choose ABC is the quality and capability of our modern Boeing 747 fleet. Our latest 747-8F aircraft provide four independently controlled temperature zones which enable us to create separate environments with a range of +4 to +29°C. This helps us to ensure we create the most comfortable temperature onboard the aircraft for the live animals we are carrying.”
In addition, the cargo carrier also provides the possibility for cargo attendants to accompany live animals onboard.
Carrying specifications
The animals are usually transported in pallets and crates, in line with International Air Transport Association’s (IATA) Live Animals Regulations (LAR), the worldwide standard for transporting live animals by commercial airlines.
Air Bridge Cargo’s Sergey Lazarev said, “We have a special product ‘abc Care’ for live animal movements and it is delivered by live animal specialists in the airline. We now have more than 10years’ experience of safely transporting a wide variety of live animals for breeding programs, conservation projects, sporting and entertainment events. All of the services we provide fully comply with IATA’s AVI live animals regulations and our special advisors are on hand to liaise with each customer to provide the help and support they need, and to answer any questions they have regarding the transportation process.
“At ABC, all live animal bookings are given the highest priority during the booking and cargo loading processes. This aims to ensure the shortest possible transit times and protects the welfare of animals to ensure their journey is as timely and comfortable as possible, both on the ground and in the air. We also work closely with local airport authorities and our ground handling partners so they are aware of each shipment and the need for a smooth handling process.”
Martyn Griffin, Sales Manager, Coyne Airways, notes, “The animals are delivered just a few hours before the flight to reduce the time they spend in the cages and in the warehouse, and everything is ready for when they arrive so they board quickly. Like flying first class.”
Coyne says proper and appropriate cages are key to ensuring the safe transport of live animals. The cages should always be strong, properly ventilated, leakproof and escape-proof, for the good of the animals, the crew and the aircraft.
“However, the same cages cannot be used for all species: some animals must be transported individually, and others may be transported in groups. When animals are transported in groups in the same cages, care must be taken to ensure that only animals of the same species, sex, size and weight are loaded together. It is also important to ensure that the cages are not overloaded, which may reduce airflow to the animals and also affect the cages’ ability to withstand turbulence, and take-off and landing,” he said.
“We take care in considering where on the aircraft the cages are loaded: for example, we would not place cages with predator and prey next to each other, nor would we tempt fate by placing sexually mature male and female animals in close proximity. We also try to ensure that animals are loaded last and offloaded first to minimize their time on the aircraft, and indeed in transit generally,” he added.
Given the growth in live animal exports, Budapest Airport plans to build facilities dedicated specifically for animals in the new cargo base to be constructed over the coming years.
Thus, in a few years’ time, it will be possible to fly almost any animal requiring special treatment or care from Budapest Airport, to any part of the world, according to Kossuth.
“We are in the process of transforming our cargo facilities as part of BUD: 2020 Development Program, which will help us to cater for the expanding live animal export market,” he says.
ULD management specialist Jettainer recently announced it is expanding its leasing services by providing comfortable transport boxes at short notice. The special ULDs can be leased for one day or up to several months. A wide variety of ULDs can be leased from Jettainer at times of peak demand via its 24-hour hotline.
The stables are now available for transporting the elegant four-legged creatures above the clouds from the JettHub in Frankfurt – and, if required, from any other destination around the globe.
The special design of the horseboxes, which can transport up to three animals, not only makes it easy for the animals to enter with its particularly broad ramp, but it also has an adjustable partition in the upper area that provides ideal visual protection between the horses. Modern polymer materials inside the box and a non-slip stand ensure that the animals can travel without injuring themselves.
If the horsebox has to be returned empty, it can be collapsed using a foldable ‘drop top’ and transported on the lower deck to save space. This means that the flying horseboxes are not only safe and comfortable for the animals, but are also efficient and save space when being handled.
“We’re noticing a huge demand for flying horseboxes and can now offer our customers flexible leasing concepts that are even better tailored to their needs,” says Martin Kraemer, Head of Marketing & PR at Jettainer, explaining the latest development.
Animal protection
With the latest moves by many airliners around the globe to ban the carriage of hunting trophies and endangered species, many are now adopting a strict ethical cargo policy identifying shipments not acceptable for carriage.
Volga-Dnepr Group continues to strongly support the programme to reintroduce endangered Przewalski horses in the Ural steppe of Russia by ensuring a safe delivery of the latest 14 horses from the Hortobágy National Park in Hungary recently.
The horses each travelled in their own special horse stall onboard a Boeing 737-400SF freighter operated by Atran Airlines, the Group’s regional and express cargo airline, in cooperation with Volga-Dnepr Airlines and AirBridgeCargo Airlines.
The temperature in the cargo cabin was maintained at a comfortable 18-20°C for the four-hour nighttime flight from Budapest Ferenc Liszt International Airport to the city of Orenburg on the steppe beyond the Ural Mountains. Experts from the national park were on hand to ensure the well being of the horses during the loading process and on arrival in Russia.
Przewalski horses are one of the rarest and most endangered subspecies of wild horse on the planet and had become extinct in their original habitat, the Central Asian and Mongolian steppe.
With the support of the Hortobágy National Park, which currently has a herd of 380 Przewalski horses on a protected area of 2,400 hectares, they are slowly being reintroduced into the Orenburg nature reserve.
Emirates SkyCargo is very cautious as to what they carry on their aircraft. The list of prohibited animals on the aircraft include: dogs (aggressive fighting breed), elephants that are below 5 years old age, pigs, poisonous snakes (zoo-zoo transfer only) and primates (zoo-zoo transfer only).
The airline also does not carry shark fins and hunting trophies of CITES I listed animals, including rhinos, elephants, leopards and lions.
Etihad Airways adheres to IATA’s regulations pertaining to animal handling and acceptance. These rules include guidance on kennel specifications, medication, state variations and many other areas of the process.
The airline also adheres to regulations protecting endangered species and overall animal welfare as covered under CITES. It does not accept live animals intended for use in scientific research. In 2015, the airline took the decision to not accept the carriage of hunting trophies using animal products.
“Collectively, the industry today is 80% more fuel efficient per seat kilometer than the first jets in the 1960s. With the introduction of more modern and fuel-efficient aircraft such as the Boeing 787s and Airbus A350s, we believe the trend of sustained improvements in our fuel efficiency will continue in the years to come.”
– Prian Chan, Assistant Manager Sustainable Development at Cathay Pacific
Aviation sustainability focuses on reducing the entire industry’s environmental and social impact on the planet while pushing for economic growth. Strategies and investments to achieve this are crucial to guarantee the future of aviation, including the sustainability of the air cargo industry.
Over the next 20 years, the number of freighter planes will increase by 70 percent based on Boeing’s latest World Air Cargo Forecast projecting the aircraft in the industry to grow on average 4.2 percent from 2016.
Cargo sustainability, which refers to transporting goods with sensible regard to social, environmental and climate impacts, must, therefore, be seriously addressed.
Cargo sustainability is one of 10 key priorities for the International Air Transportation Association (IATA). Cargo experts at Cathay Pacific, ATS Shipping, Lufthansa and at IATA spoke with AIR CARGO UPDATE why sustainability holds the key to the future of the air cargo industry.
Driving force
In the last few years, Cathay Pacific’s focus has been on climate change and biodiversity issues.
Prian Chan, Assistant Manager Sustainable Development at Cathay, says: “On climate change, we completed our freighter fleet renewal which comprises of Boeing’s latest and fuel efficient Boeing 747-8Fs with 14 in our fleet. We phased out our Airbus A340s and Boeing 747-400s in the past year and began receiving our 48 Airbus A350s. We work with airports and air navigational service providers to optimize our operations around the world.
“Recognizing that we have an impact on the destinations to which we fly, we continue to develop and incorporate biodiversity elements into our sustainable development strategy. We work with industry associations, conservation organizations and academia in regularly reviewing our cargo carriage policy. Over the past few years, we have placed an embargo on shark’s fin, ivory and its related products and hunting trophies”.
Lufthansa is constantly working to reduce CO2 emissions and improve the environmental balance.
Bettina Jansen, Lufthansa Cargo Head of Environmental Management, notes, “By 2020, we aim to have a 25 percent reduction in specific CO2 emissions in comparison to 2005 values. We are continuing to put our environmental strategy into motion across all levels: a certified environmental management system in the air and on the ground, entering into dialogue with science, customers and suppliers, as well as open and honest internal and external communication.”
“Between 2005 and 2016, we have been able to reduce the specific CO2 emissions of our fleet from 549 to 460 grams per ton kilometer transported. This step has meant we have already achieved our 25% goal, at 16.2 percentage points.”
IATA’s Global Head of Cargo Glyn Hughes says the air cargo industry has a positive social and economic impact on many countries. It carries 6,849 vaccines every day, saving lives.
It transports $6 trillion in value of goods, representing 35 percent of global trade by value, but less than 1 percent by volume, supporting economies around the world. Over 68 million people today have jobs supported by the aviation industry.
“The future of air cargo can be guaranteed and our planet preserved for future generations only through working towards long-term industry sustainability,” said Hughes.
“In addition to working to reduce aviation’s impact on climate change, IATA also considers the social aspect and invests in future generations working in air cargo, through the FACE program which recognizes there is an urgent need to invest in people, promote gender diversity, and attract and develop young talent,” he added.
Air transport as a whole represents just 2 percent of global carbon emissions. However, IATA recognizes the need to address the global challenge of climate change and has adopted a set of ambitious targets to mitigate CO2 emissions from air transport:
An average improvement in fuel efficiency of 1.5 percent per year from 2009 to 2020
A cap on net aviation CO2 emissions from 2020 (carbon-neutral growth)
A reduction in net aviation CO2 emissions of 50 percent by 2050, relative to 2005 levels
An important step towards this was achieved at the 39th session of the ICAO Assembly in 2016, when its member states adopted a global carbon-offsetting scheme for international aviation. ICAO’s Carbon Offset and Reduction Scheme for International Aviation (CORSIA) is set to commence with a voluntary period (2021-2026) after which it will become mandatory.
Strategies and investments
Sustainability requires an investment from all participants in the cargo supply chain (shippers, freight forwarders, ground handlers and carriers).
Specifically in the case of the environment, IATA Member Airlines are committed to reducing their impact, through investment in technology, efficient fleets, better infrastructure and the development of a long-term innovation strategy.
According to IATA, the aviation industry’s strategy to reduce environmental impact has four pillars:
Improved technology, including the deployment of sustainable low-carbon fuels
More efficient aircraft operations
Infrastructure improvements, including modernized air traffic management systems
A single global market-based measure, to fill the remaining emissions gap.
Chan notes that in 2016, the airline achieved important sustainability milestones, which will allow them to accelerate their performance in the years ahead.
“We received our 14th and final Boeing 747-8F freighter and operated our first biofuel-powered flight, which was incidentally the world’s longest at the time. Sustainable development remains an important part of our brand and proposition to our customers,” he says.
Technological innovation
There are numerous examples of technological innovations contributing to the long-term sustainability of the industry. New Information and Communication Technologies (ICT) are being used to improve the efficiency of scheduling, tracking and tracing, across the supply chain.
Developments in composite materials have facilitated the production of lighter weight equipment such as Unit Load Devices (ULDs). Advances in aerospace technology have resulted in the production of more efficient fleets and engines that can run on biofuels.
Lufthansa Cargo is continuously working to reduce flight emissions. In doing so, they rely on the latest technologies to optimize their fleet on an ongoing basis – for example, the investment in the Boeing 777F.
“This is truly state-of-the-art technology and design. For example, the use of advanced materials, raked wingtips and powerful engines – all this makes the Triple Seven cleaner, quieter and more efficient. Optimal use in our route network and a high level of capacity utilization also significantly contribute to reducing emissions. In addition, the B777F we use is the quietest cargo aircraft in its class,” says Jansen.
ATS Shipping’s Global Sales Director Santanu Datta, says: “Air cargo and logistics businesses are also making substantial inroads into environmental sustainability. Many airlines are doing away with older, noisy, fuel-guzzling aircraft in favor of renewed fleets of sleek, modern, fuel-efficient, quieter models, which has invested heavily in a low emissions fleet, has set itself ambitious goals in its Environmental Strategy.”
Green modes of transportation
Green modes of transportation refer to the incorporation of new technologies such as electric vehicles and other advanced usage of technology. It also takes into account planes that have a lower impact on the environment, such as reduced noise pollution, increased fuel efficiency, and less CO2 emissions.
Airlines are united in their determination to manage and reduce their impact on the environment in partnership with airports, air navigation service providers (ANSPs), and aircraft manufacturers.
“Tackling carbon (CO2) emissions is at the top of the agenda, and the industry has a well-established strategy and globally agreed targets to that end. Noise is addressed through the ICAO Balanced Approach. To deal with more general environmental issues, airlines are working together to establish and share best practices, including the use of environmental assessments,” says Hughes.
Chan adds, “For example, our ground handling contractor and subsidiary has implemented a GPS tracking system enabling us to efficiently manage the fuel consumption across our ground fleet of vehicles. In 2016, there was a decrease of 2.7 percent in fuel consumption per handled flight in comparison to the previous year. We expect additional improvement in fuel efficiency as the GPS tracking system is expanded.”
A leading indicator
Transport and logistics inevitably use fossil fuel as their primary energy source to move goods and services across global supply chains and distribution channels. As carbon is the leading source of emissions from the combustion of fossil fuel, the amount of carbon emissions released and its relative intensity are good indicators of efficiency.
“CO2 emission is the lead impacting factor in transport and logistics as it has a direct impact on environment. It’s found that to move a 5 Kg parcel, a less energy-efficient vehicle can emit 12 Kg of CO2. So, one can imagine the task we all have as an industry player to work towards this and improve for a sustainable society,” said Datta.
By the end of 2013, Lufthansa replaced all AKE aluminum containers by a lighter 
weight container, which on average saves 14 kilograms. The resulting CO2 saving, some 7,000 tons a year is a real win for the environment. Currently, all AKH container models are being replaced. The end goal is to replace all standard containers by 2020 using lighter materials.
Negative impact
According to the Intergovernmental Panel on Climate Change (IPCC), aviation (including cargo and passenger) accounts for approximately 2 percent of global emissions from human activity.
As aviation grows to meet increasing demand, the IPCC has forecasted that by 2050, this could rise to 3 percent. At the same time, the combustion of non-renewable fossil fuels produces other air pollutants that may affect the health and well being of living organisms.
“To meet the threat of climate change by keeping a global temperature rise this century well below 2 degrees Celsius above pre-industrial levels as agreed by the Paris Agreement, it is critical that all industries, including transportation, play a role in reducing emissions and improving carbon efficiency,” said Chan
Is sustainability on a run?
Sustainability is a journey and not a destination. The aviation industry already has more green freighters through more efficient technologies: each new generation of aircraft is on average 20 percent more fuel efficient than the model it replaces and over the next decade airlines will invest $1.3 trillion in new planes.
Planes are also more silent than ever before. The aviation industry measures and records its CO2 emissions, and is preparing for CORSIA, the global market based measure to offset carbon emissions.
In air traffic management, flights operations are improved with more efficient landing and departure methods. Specifically in freight, Unit Load Devices (ULDs), which carry cargo items in the planes, are lighter and improve fuel efficiency. E-freight is well underway, focusing on a paperless transportation process in air cargo.
“We are looking forward to seeing new technologies enter the market to make air freight even greener. The arrival of drones can be a new future for a greener air cargo, with more sustainable technologies, energy sources, and flight operations. Drones in the future can be used for all kinds of delivery (long-range, to short-range, small size deliveries, to large cargo loads), and the impact they will have on the environment seems to be low from what is currently being presented in the market,” said Hughes.
“Solar impulse has shown the aviation industry that solar power can be an option in the future as well. Look at how far we’ve come in only 100 years of aviation. We need to continue thinking ahead, securing the future, and creating value for a sustainable air cargo industry. The future looks green for air cargo,” affirms Hughes.
“We are beginning to see greener freight transportation through various initiatives being implemented or have been rolled out at individual airlines and across the industry to improve the sustainability of air cargo with more to come.
“Collectively, the industry today is 80% more fuel efficient per seat kilometer than the first jets in the 1960s. With the introduction of more modern and fuel-efficient aircraft such as the Boeing 787s and Airbus A350s, we believe the trend of sustained improvements in our fuel efficiency will continue in the years to come,” responds Chan.
“It’s already happening in various part of the world. Platooning vehicles by using smart radar systems using road-train, using electric vehicles for cargo pick-up and delivery, re-sizing the vehicles, using efficient fuel, replace traditional carriage by more modern fleet, usage of paper-less systems, periodic and genuine maintenance of vehicles, using smart technology with less handling and interface…and the list can keep adding on. Awareness towards the goal is important and this need to percolate down to the last person in the chain of logistics biz… and then days won’t be far to achieve a better and greener environment,” concludes Datta.
Azerbaijan’s link to the global market
After redefining its government structure through a Constitutional amendment in September 2016, the oil-and-gas rich nation of Azerbaijan in the Caucusus region is setting its sight in reforming and further diversifying its economy.
Accelerating reforms to improve the environment for private sector development after the fall of oil prices and cracks in the financial sector globally in recent years require prudent decisions and calculated investments that would yield to tangible results.
26 years since becoming independent from the Union of Soviet Socialist Republics (USSR) after the collapse of the communist regime in 1991, Azerbaijan has successfully written its modern-day history with remarkable success, its economy in particular.
“In the economic sphere, we could talk a lot about our achievements, but we can also cite one fact: according to the latest report of the Davos World Economic Forum, the Azerbaijani economy is ranked in 37th place in the world in terms of competitiveness. This is the first place in the CIS and a fairly serious place in the international arena,” Azerbaijan President Ilham Aliyev was quoted as saying in an interview with Sputnik Azerbaijan on the occasion of the country’s 25th anniversary in 2016.
“…there are horizons ahead of us, we are confidently moving forward, and I am sure that the next quarter of a century will also be a period of rapid development.”
The country has kept its 37th spot in the 2016-2017 Global Competitiv-eness Index scoring high on macro-economics, education and healthcare reforms.
Aviation and air freight investments
With aviation and air cargo industries crucial to the country’s economic agenda, the government is investing heavily on them.
Azerbaijan launched last month Buta Airways, the country’s first budget airline established under the Azerbaijan Airlines CJSC (AZAL), designed to help spruce up Baku’s tourism industry.
The government ordered eight Embraer 190 aircraft for Buta Airways which will fly from Baku to Moscow, Kyiv, Antalya, Kazan, Mineralnye Vody, Tbilisi and Tehran. The maiden flight commenced on September 1 and routes to Istanbul and St. Petersburg and from Ganja are scheduled to begin on October 29.
The minimum tariff will be Euro 29 for one-way ticket for all flights.
The country’s flag carrier, Azerbaijan Airlines, separately flies to more than 20 cities in 13 countries and is considered one of the leaders in the region.
On the cargo side, the government has also poured in support and investments to Silk Way West Airlines, a leader in scheduled and charter cargo flights with a route network to more than 50 destinations worldwide.
Silk Way West Airlines, a subsidiary of Silk Way Group which had grown to 23 companies since it was formed in 2006, offers full-range cargo services, including ground handling, storage and charters to any part of the world.
The company which has an office in Dubai, home to the International Humanitarian City, the largest humanitarian logistics hub in the Middle East, also transports international aid for various nongovernment organizations as well as UN cargo intended for relief, apart from dealing with general cargo.
“Silk Way West has extensive experience in areas not serviced by other airlines, such as Afghanistan and Iraq, in addition to regular flights on intercontinental routes that extend throughout Asia and Europe from our centrally located hub in Baku. We work with government and non-government organizations from all over the world to provide dedicated solutions to any request, no matter how complex,” the company stated on its website.
On September 24, Silk Way West Airlines launched its first flight out of Hong Kong to Chicago, via a fully loaded Boeing 747-8F plane, the first of the many new routes it plans to open to further grow its network. A second trans-Pacific flight is also being mulled.
Trade relations between China and Azerbaijan continue to improve as activities in the so-called One Belt, One Road project that connects China to Europe and Asia grow.
Kamran Gasimov, CEO of Silk Way West Airlines, thanked the Azerbaijan government for its continued support to the company since it was established in 2012.
“Our government gives aviation and cargo the highest priorities. As a small nation, this is very important in economic stability. Without the big support of the Azerbaijan government, we will never be able to achieve what we have in the past few years. Today, we have one of the biggest fleet in the region with the highest capacity,” said Gasimov, a veteran in the aviation industry.
In an interview on the sidelines of the four-day Air Cargo Europe held in Munich, Germany early this year, the CEO also noted cargo business in the Caspian region is getting better with e-Commerce picking up in Azerbaijan, Georgia and Russia.
Gasimov said the global aviation and air freight industries, in general, have warmed up with Silk Way West Airlines, thanks to its good track record in providing reliable and fast delivery services.
“This is very encouraging and promising and a great incentive for our people,” he said.
Silk Way West Airlines currently has five Boeing 747-8 and two more aircraft are scheduled for delivery before the high season kicks in.
In its 2016 World Cargo Forecast, Boeing listed Silk Way West Airlines as the top carrier pursuing diverse cargo growth strategies in the world.
Investing on facilities
Based out of Heydar Aliyev International Airport, Silkway also boasts of modern cargo terminal facilities through the International Logistics Center spread over 12,800 square meters of land.
ICT has a 30-ton and 14-ton scales allowing it to store 2,200 ton or 5,800 cubic meters of palletized cargo.
The total cargo capacity of the center is 1,200 tons or 7,000 cubic meters per day, or 430,000 tons or 2.5 million cubic meters per year, the government said.
The only one in the South Caucasus, ILC can store and process all kinds of perishables, plants, animals and pharmaceuticals included, that require temperatures from -18 to +20 degrees.
Gateway to the world
With good infrastructure and strong investments on areas that promote socio-economic development, Azerbaijan plays an important role not just on the health of its economy but the whole Caucusus as well as the gateway between the East and the West.
In 2006 and 2007, Azerbaijan demonstrated its ability to become an economic powerhouse in the region with rapid increase in its oil production causing its GDP growth to shoot exponentially.
“Azerbaijan is trying to benefit from regional connectivity initiatives to boost transit and trade. In particular, the country is one of the sponsors of the East–West and North–South transport corridors. Construction of the Baku–Tbilisi–Kars railway line, which will connect the Caspian region with Turkey, is expected to be completed in July 2017,” World Bank said in its latest economic report about Azerbaijan.
“The Trans-Anatolian Natural Gas Pipeline (TANAP) and Trans-Adriatic Pipeline (TAP) will deliver natural gas from Azerbaijan’s Shah Deniz gas field to Turkey and Europe. The Government has embarked on reforms that will accelerate banking sector resolution and improve the business environment—critical ingredients for restoring public and investor confidence,” it added.
Italy, Germany, Russia, Turkey and the United States, are the top five trading partners of Azerbaijan, government data showed, with oil and gas exports accounting for about 35 percent of the country’s GDP.
Aviation, air freight and other modes of transportation for exporting and importing goods will shape the course of its diversified future economy.
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