CEVA Logistics has expanded its owned and controlled SKYCAPACITY program and added five more stations to its network of airfreight locations certified under IATA’s CEIV Lithium Battery program.
In an announcement at IATA’s World Cargo Symposium in London, CEVA confirmed that it has purchased additional air capacity on key routes. The company now controls more than 1,300 tons per week thanks to more than 50 flights serving 20 airports.
CEVA said that its capacity program offers consistent pricing and guaranteed capacity despite market peaks and lows.
The CEVA network currently offers a variety of destinations to and from North and South America, Europe and Asia Pacific.
The network spans multiple carriers and includes freighter, pax freighter and passenger capacity — all available with management, tracking and customs services. The network is also available as a spot cargo solution for customers.
Said Peter Penseel, chief operating officer, air freight, CEVA Logistics: “We’re continuing to expand our global network as well as the quality and safety of our air transport services.
“With the improved SKYCAPACITY program and our newly CEIV certified air stations, we have strongly increased our ability to co-create value with our clients across a wide range of industries.”
In a separate announcement, CEVA’s locations in Frankfurt, Incheon, Shanghai (PVG), Singapore and Tokyo are now CEIV certified in the handling of lithium batteries, joining its Amsterdam and Hong Kong airfreight stations.
CEVA became the world’s first company to receive the new IATA CEIV certification in 2021 after teaming with IATA to support the development of the new program.
CEVA expects to receive the certification at two US locations in Atlanta and Detroit by the end of 2022, bringing its total number of certified stations to nine.
The certification confirms each facility’s ability to properly handle and store lithium batteries, as well as validates the necessary training and expertise of on-site employees.
Sao Paolo’s GRU Airport in Brazil has becomes a strategic airport member of Pharma.Aero, representing the East South America region.
The GRU Cargo Complex is the largest airport logistics facility in Latin America, and Brazilia’s number one pharma hub with the largest airport cold storage facilities in the region.
The airport cargo facilities total 145,000 sq. m of warehousing, of which 99,000 sq m are directly operated by GRU.
The airport’s cargo compiles and handles products from various industries, including pharmaceutical, electronics, textile, food and beverage, automotive and machinery parts and perishables.
The pharma industry is the strongest segment at GRU, processing over 60% of the Brazilian market, supported by 30,000 cu m of temperature-controlled areas and 24 cold chambers ranging from -18ºC to 25ºC. In the last two years, GRU played a central role in vaccine logistics.
Pharma.Aero is an international cross-industry collaboration platform for LifeScience and MedTech shippers, IATA CEIV certified cargo communities, airport operators and other air cargo industry stakeholders.
Trevor Caswell, chairman of Pharma.Aero, said, “We are thrilled to have GRU Airport as our newest Strategic Member for the Eastern South American region. GRU Airport is the largest pharma hub in Brazil, and we are excited to have such a strategic airport, with such a robust pharma logistics program join our membership.
“This recent addition will continue to strengthen our global cross industry partners in South America, where pharmaceutical logistics plays an integral role in the air cargo market.”
GRU Airport has been a Pharma.Aero full member since October 2020 and has now decided to become a strategic member and to take part in the decision-making process of the organization.
GRU Airport commercial cargo manager Hugo Repolho said: “After two years as a full member and several investments made to improve our pharma infrastructure and operations we are pleased to be announced as a strategic airport member representing South America along with LACC and assuming higher responsibilities to develop the Pharma sector.”
Latin America Cargo City (LACC), is a multimodal Airport Free Zone in Montevideo (Uruguay).
Added Repolho: “The Pharma segment has been at the core of GRU Airport’s activity over the years and is growing more and more with better infrastructure, improved operation, and certifications. This opportunity will allow us to work closely with key pharma logistic players and develop projects that for sure will modernize the sector and optimize cargo flows.”
As a strategic member, GRU Airport becomes a voting member of the general assembly and can run for a position in the board of directors.
Air Canada Cargo is launching a five times a week B767 freighter service from St. John’s (YYT) to Frankfurt and Madrid.
Effective in October, there will be two non-stop flights per week to Frankfurt and three non-stop weekly flights to Madrid.
Air Canada Cargo is the only Canadian carrier with a scheduled cargo service from St. John’s to Europe, supporting Newfoundland and Labrador’s economy.
These new flights complement Air Canada Cargo services to Halifax, further solidifying the carrier’s freighter network connecting Atlantic Canada globally.
Stella-Marissa Hughes is CAE’s Advanced Air Mobility Strategy, Business Development & Partnerships Leader, with vast experience in the aerospace and defense industry, including strategy, business development, and program management roles.
She is responsible for leading the development and execution of the Montreal-based CAE’s advanced air mobility strategy, as well as identifying and developing new business opportunities and partnerships.
“I am the daughter of a diplomat and grew up in various locations, which sparked my love of travel. I eventually went to McGill University in Montreal for my B.Eng and M.Eng. I made the shift from aerospace engineering to R&D strategy when I started at CAE in 2015, and later transitioned into business strategy as part of the Business Development group within our Civil business unit. After working on organic and inorganic growth projects for our training and simulation products business, I took on a new role that was primarily dedicated to working with start-ups to accelerate CAE’s innovation, either through collaboration or investment. Through that work, I became very interested in Advanced Air Mobility, which led me to launching a dedicated team that is focused on this emerging form of aviation.
“We have now become a cross functional team of nearly 50 individuals who are creating new products for this area, constructing a future training program, working with regulators and forming partnerships with some of the top OEMs such as Joby, Beta Technologies, Volocopter, Vertical Aerospace and Jaunt,” Stella shared.
Stella takes pleasure in spending time with her friends playing board games. Even in her leisure time, she enjoys thinking about strategy and how to work collaboratively with others.
“I’m a yoga enthusiast, so I love to be able to shake off the day with an hour of yoga. Preferably in my garden (Montreal weather permitting). I find that yoga helps me to clear my mind and connect with my body, and it’s a great way to de-stress. I’ve been practicing yoga for several years now, and I always feel better after a session.”
Stella’s favorite quote is from Maya Angelou, “People will forget what you said, people will forget what you did, but people will never forget how you made them feel” which always stuck with me. It’s important to treat the people around with empathy and respect. I try to live by that and to excite and energize the people around me.”
Stella looks up to her partner, saying, “My partner is my inspiration. He founded a robotics company five years ago, and being on the journey with him as he has grown a medtech company into productization and profitability stokes my own drive. Watching him lead a team and foster a sense of community has shaped my leadership style. I have seen firsthand how his innovative thinking and dedication to his work has led to success, and I am eager to follow his example. He is my motivation to continue learning and expanding my own skills so that I can one day reach the same level of success.”
Currently, Stella works with startups that are working to transform the way that people and businesses operate.
“It’s energizing and I feel like I learn something new every day. If I was not working in aviation, I would probably be supporting business development of an engineering tech start up. I would find it rewarding to watch a business grow from the very early stages and know that I’m making an impact to a new industry,” she said
Stella expects the remaining 2022 and upcoming years to be exciting for her.
“As the Partnership Leader for CAE, I am excited about the potential for the AAM industry in the coming years. We have many partners who are currently in critical phases of their flight test programs, and it is immensely gratifying to have our engineers and training specialists working alongside them as they move closer to certifying their vehicles. I believe that the next few years will be immensely successful for the AAM industry, and I am proud to be a part of it.”
Attended by nearly 1,300 participants from nearly 70 countries, the resolve has been to work collectively towards achieving carbon net zero by 2050; expand sustainability footprint; accelerate digitalization and attract talent to the sector.
The 15th edition of the World Cargo Symposium (WCS), the largest and most prestigious annual event of the International Air Transport Association (IATA), held from September 27 to 29 in London, had a distinct refrain – to move the industry from ‘talk to action’.
Attended by nearly 1 , 3 0 0 participants from nearly 70 countries, the resolve has been to
work collectively to wards achieving carbon net zero by 2050; expand sustainability footprint; accelerate digitalization and attract talent to the sector
‘Talk to action’, being the leit motif of the event, the moderator of one of the panel sessions, Celine Hourcade, Founder and CEO of Change Horizon, did not mince words, asking heads of three major cargo associations on whether ‘talk of collaboration was just blah, blah’.
The triad – Brendan Sullivan, Global Head of Cargo, IATA; Steven Polmans, Chairman of the Board of The International Air Cargo Association (TIACA) and Dr. Stephane Graber, Director General of the Federation of International Air Transport Association (FIATA) – explained that while there are some commonalities in their work, yet they are different. However, they vowed to work together in not just the race towards carbon net zero, but also on various fronts to make the cargo supply chain efficient, sustainable and adding to bettering lives.
Tough road ahead, need to prioritize
Credit must go to the event organizers for formatting the event (plenary, panel di s cus s ions , exhibition, workshops, networking etc) that opened up opportunities for the air cargo sector which was coming together on such a platform after a hiatus of nearly two years. The whole event had a focussed approach with four clear themes running – sustainability, digitalisation, safety and security (focus on safely carrying lithium batteries), and talent acquisition and retention. While the exhibitors/delegates seemed gung-ho about the prospects ahead, the message from the event was loud and clear – that the road ahead is going to be tough (global recession, energy crisis, dynamics of digital adoption, continuing Russia-Ukraine conflict) and the urgency to under s t and priorities and to align accordingly.
Setting the tone for the WCS, David Shepherd, Managing Director, IAG Cargo said the sector needs to work on reducing usage of singleuse plastic; electrification of vehicles on airside; harnessing solar; and increasing the percentage of women workforce.
Warning that airlines would continue to be the weakest link in the value chain, Marie Owens Thomson, Chief Economist at IATA said there is need to drive synergies with other forms of transportation. The sector is resilient,
but it needs to improve its resilience and robustness, considering that global economic slowdown is expected to continue in to 2023; interest rates going up ; and less accommodate monetary policies across countries.
On the key outcomes from WCS, Michael Steen, Cargo Advisory Council Chair & CEO Atlas Air said the air cargo sector is on a good path and that the momentum needs to be sustained. The pace of digitalisation has to be stepped up, so also messaging about sustainability as regulations alone will not drive success. Echoing similar thoughts, Andrea Bianchi, Cargo Advisory Council Vice Chair & LATAM Head of Cargo said at the macro level there is alignment, but that has to percolate down to all levels. One issue that the sector needs to urgently address is the massive use of plastics.
The priorities, outlined at WCS thus remain:
1. Achieving net zero carbon emissions by 2050;
2. Continuing to modernize processes;
3. Finding better solutions to safely carry lithium batteries;
4. Making air cargo attractive to new talent
The road to Net Zero by 2050
In 2021, the aviation industry agreed a balanced plan to achieve net zero CO2 emissions by 2050. A potential scenario for this is:
• 65% through Sustainable Aviation Fuel (SAF)
• 13% from hydrogen and electric propulsion
• 3% from more efficient operations
• 19% through offsets and eventually through carbon capture, as an out-of-sector solution while technology develops.
“SAF is the key to achieving net zero emissions. Airlines used every drop that was available in 2021. And it will be the same this year. The challenge is SAF production capacity. The solution is government incentives. With the right incentives, we could see 30 billion liters of SAF by 2030. That would be a tipping point by 2030 towards our net zero ambition of ample SAF quantities at affordable prices,” said Sullivan.
SAF is scarce and prohibitive
However, during the panel discussion on air cargo’s sustainability mission, there were severe doubts on the availability of sustainable aviation fuel (SAF) which is not only scarce but also highly cost prohibitive. Martin Drew, Senior Vice President, Sales and Cargo, Etihad Aviation Group, said ‘SAF should firstly be available’. That kind of sums up where SAF is, unless, of course, the whole SAF ecosystem miraculously appears from nowhere.
Modernization and efficiency
“The challenges of the COVID crisis gave us confidence that we can change and adapt fast. We need to use that confidence to get even closer to the expectations for modernization that our customers have. And we need to be true to air cargo’s unique selling point and move even faster,” said Sullivan. IATA highlighted two areas where progress was being made: IATA’s ONE Record is making it possible for everyone across the industry’s value chain to see the same information on shipments. Already 156 companies and four customs authorities are using it.
IATA Interactive Cargo Guidance provides a common framework so that tracking devices can monitor the quality and accuracy of conditions of time and temperature sensitive goods. Government support for the modernization agenda through facilitating trade is also critical.
“The Revised Kyoto Convention which brings standardization, technology, predictability and speed to trade facilitation and the World Customs Organization (WCO) SAFE Framework of standards to facilitate and secure trade are major steps forward in supporting global trade. But we are still seeing far too many diverging requirements by governments in areas that should be harmonized by these two tools. This needs to change quickly so we can continue to support global trade—and its vital contributions to economies and the UN Sustainable Development Goals—with modern and efficient air cargo. Universal adoption and implementation will deliver the greatest benefits,” said Sullivan.
Expanding on this point, Turhan Ozen, Chief Cargo Officer, Turkish Airlines, said the industry proved itself in the last two years by quickly modernising the processes, digital adoption etc to help move medicines and other essential items with great speed, flexibility and safety.
There are some commonalities in their work, yet they are different. However, they vowed to work
together in not just the race towards carbon net zero, but also on various fronts to make the cargo
supply chain efficient, sustainable and adding to bettering lives.
Safety, challenge of lithium batteries
Safety, specifically finding better solutions to safely carry lithium batteries was highlighted as a priority for the industry. “We can be proud of the progress that we are making to further improve the safe handling of lithium batteries. For air cargo, this is a top priority. But even the best regulatory structure means nothing if the rules are not followed. Compliance is an issue with the transport of lithium batteries, particularly with the proliferation of new—and inexperienced—entrants in e-commerce activities,” said Sullivan.
There were demands to criminalise the production and shipping of counterfeit lithium batteries as the outcomes of any incident could be catastrophic. IATA has called for regulatory authorities such as EASA and FAA to accelerate development of a test standard that can be used to demonstrate that fire containment pallet covers and fire-resistant containers are capable of withstanding a fire involving lithium batteries.
Government authorities to step up and take responsibility for stopping rogue producers and exporters of lithium batteries. Industry to use technology such as DG Autocheck to more easily and accurately verify that the shipment complies with DG requirements. To embed best practices on the safe carriage of lithium batteries across the value chain, IATA has expanded its CEIV Lithium Battery program to include airlines and shippers.
Talent acquisition and retention
“People are the core of any improvement in what air cargo can deliver. Sadly, we saw thousands of jobs leave the industry during COVID-19, especially cargo handlers. We are now competing for talent in a very tight job market. And when we do find the right and willing talent, training and longer-than-usual security clearance processes delay their entry into the workforce,” said Sullivan.
IATA called for governments to accelerate clearance processes, including those for security, as a short-term solution and longer term to do a better job of attracting, onboarding, and retaining talent. IATA a l so encouraged more cargo carriers to sign on to the industry-wide 25by2025 initiative to promote gender diversity. “The need to create equal opportunities for the female half of the world’ s population is highlighted by the situation today where the industry
is struggling to attract sufficient talent. Achieving an equal gender balance must be core to any longterm talent strategy,” said Sullivan.
Brendan aptly summed up “air cargo had a stellar year in 2021 achieving $204 billion in revenues. At present, however, social and economic challenges are mounting. The war in Ukraine has disrupted supply chains, jet fuel prices are high and economic volatility has slowed GDP growth. Despite this, there are positive developments. Ecommerce continues to grow, COVID restrictions are easing, and high-value specialized cargo products are proving resistant to economic ups-and-downs. Going forward, achieving our net zero commitment, modernizing processes, finding better solutions to safely carry lithium batteries, and making air cargo attractive to new talent are critical.”
IATA has called for regulatory authorities such as EASA and FAA to accelerate development of a test standard that can be used to demonstrate that fire containment pallet covers and fire-resistant containers are capable of withstanding a fire involving lithium batteries.
“Live fish is a sensitive cargo and stringent processes must be adhered to at every stage of the transportation process. The fish will be loaded into special vessels for transport in boxes, and these are carefully placed inside further unit load devices for their journey. As well as maintaining constant environmental conditions specific to the species’ requirements, timing is critical, as the entire journey must not exceed 48 hours.” – David Adamek, CEO of Skyport
By Ayesha Rashid
Live fish transportation is a rapidly growing segment of the air cargo industry amid growing demand for fresh fish and seafood around the world. While live fish transportation poses some challenges, it is generally considered to be safe and efficient.
Live fish are considered to be sensitive cargo because they are alive and need to be kept alive during transport. This means that the cargo must be handled with care and that the transportation process must be closely monitored. There are a few different methods of live fish transportation, each of which has its own advantages and disadvantages. New technologies and practices have also been developed to reduce stress on fish and keep them healthy during transit.
In this article, we will take a closer look at live fish transportation, including the challenges and benefits of this type of air transportation with David Adamek, CEO of Skyport.
Sensitive cargo
The transportation of live fish is a delicate and time-sensitive operation that requires the strictest environmental conditions to be maintained at all times. Special vessels are used for this type of cargo, and they are equipped with the necessary facilities to ensure that the fish are kept alive and in good condition during the journey.
The guidelines for live fish transportation are set by the International Air Transport Association (IATA). The IATA Live Animals Regulations (LAR) are the only international standards for the shipment of live animals by air.
The LAR provides guidance on the preparation of live animals for transport, the handling of live animals during transport, and the transportation of live animals in special containers. The LAR is revised every two years to keep up with the latest advancements in science and technology.
“The IATA Live Animals Regulations (LAR) contains a comprehensive classification of thousands of animal species along with the container specifications required for their transport.
“Specific regulations apply according to the species of fish – some fish must be individually packed due to their sensitive reactions or aggressive tendencies. Seahorses can be shipped in plastic bags as long as they can anchor themselves to something in order to minimize stress. Jellyfish, for instance, can be shipped but to prevent air getting under the umbrella the bags must not contain any free air/oxygen, as this will jeopardize the well-being and survival rates of the jellyfish
“Live fish is a sensitive cargo and stringent processes must be adhered to at every stage of the transportation process. The fish will be loaded into special vessels for transport in boxes, and these are carefully placed inside further unit load devices for their journey. As well as maintaining constant environmental conditions specific to the species’ requirements, timing is critical, as the entire journey must not exceed 48 hours,” says Adamek.
Other main challenges of live fish transportation are keeping the water at a constant temperature and ensuring that the fish have enough oxygen to breathe. These challenges are compounded by the fact that fish are highly sensitive to changes in their environment and can easily succumb to stress.
Despite the challenges, live fish transportation is a necessary part of the seafood industry.
Temperature requirement
Shipments of live fish are viewed as perishable items, so the entire route must not take more than 48 hours. Time is extremely essential when it comes to fish.
“We manage a great diversity of live animals every day at Skyport, both big and small. The most challenging was probably the shipment of five black rhinos from Prague airport to Rwanda. We closed off our warehouse for three hours and all our staff on duty were carefully securing the huge containers so that the rhinos could be loaded on board safely,” said Adamek.
The specific temperate requirements for different fish species can vary significantly, making transportation via aircraft a challenge. Maintaining optimal temperatures during transit is essential to ensure the fish arrive alive and in good condition. Choosing the right aircraft, and outfitting it with the proper temperature-control equipment, is critical to making sure fish arrive at their destination safely.
Transporting fish by aircraft requires specific temperature requirements in order to ensure the safety and quality of the fish. The optimal temperate for fish transportation is between 0 and 4 degrees Celsius. Fish that are transported at too high of a temperate can experience decreased quality, while those transported at too low of a temperate can experience increased mortality rates.
“Live tropical fish (AVF) must not be stored under a minimum temperature of 20 C (68 F) during ground time. Transportation to and from the aircraft must be performed as quickly as possible. The optimal temperature during transportation lies between 20 °C and 27 °C.
“The fish must first undergo a veterinary check at the country of origin prior to being tendered for transport by air. It is important to ensure that the fish are then held in areas where the ambient temperature remains moderate and stable, ensuring there are no extremes or excursions in temperature during both the ground handling process and when the fish are in transit while on board the aircraft. The consignee arranges immediate collection of the fish upon arrival to undergo another veterinary examination and approval.”
Training provided to handlers
Air transport is the most humane way of transporting live animals on long journeys. It is imperative that high standards are maintained by all those involved: veterinary inspectors, animal keepers, container manufacturers, ground handlers, air carriers, and so on.
In order to ensure the safety and well-being of the animals, specific handling is required for each of the animal species, such as constant temperatures throughout the journey, sufficient feeding or fasting prior to travel. Therefore, for long journeys the only speedy option is to use an aircraft.
Fish handlers are trained to handle fish in a safe and humane manner. The handlers of fish must be trained in order to ensure that the fish are properly cared for. This training includes how to properly feed the fish, clean the fish tanks, and maintain the water quality. The handlers must also be trained in how to identify signs of stress and illness in the fish, so that they can be quickly treated.
“The well-being of the fish we take in is always our top priority. Our staff are highly trained and experienced in checking all documents as well as the conditions of the animals and their transport boxes. We have a designated room in our warehouse facility which is fitted with air conditioning and temperature settings that can be adjusted to suit all types of animals, including direct heating if needed, such as when housing reptiles.
“Skyport provides on-demand veterinary services for live animals. The service is typically requested by shippers for animals in transit via our station, where a professional veterinarian will come and assess the animal’s health,” Adamek further explains.
Skyport transports all sorts of freshwater tropical fish, marine fish and aquarium plants. One of the most widely distributed tropical fish is the Guppy.
“We have moved all different varieties including, but not limited to, the Green Cobra, Velvet White, Neon Red, Tuxedo Dragon Head and Sunset Guppy. These are usually destined to be domestic pets.”
Technological advancement
It is imperative that the live fish are properly packaged before dispatch, in a single species per strong plastic bag, a minimum of one-quarter filled with water. The rest of the container should then be filled with oxygen. The shipper is responsible for this. The sealed bag is to be placed in a polystyrene or fibreboard container, with insulation based on the temperature difference of the origin and destination locations.
The containers are then labeled stating the species, required temperature and handling, and also indicating the date and local time of packaging the fish.
“Technology is already benefiting the process in the form of temperate monitoring and regulating but I don’t think the transport of live tropical fish will change much in the future.
“Undoubtedly, technology promises to bring vast benefits to the air cargo sector more broadly but in the niche area of live fish transportation there are certain process that can’t be digitalised or simplified with the introduction of more technology – at least not any time soon.”
Effects of Covid-19
The novel coronavirus (Covid 19) has had a significant impact on the global economy, with businesses and supply chains being disrupted on a scale not seen since the Second World War. The fishing industry has also been affected, with the transport of fish and seafood being disrupted by the pandemic.
The decrease in demand for fish has been most keenly felt in China, which is the world’s largest importer of seafood. The Chinese market accounts for around a third of the global demand for fish, and the pandemic has seen a sharp drop-off in demand from Chinese consumers. This has had a knock-on effect on other markets. However that was not the case with Skyport.
“Covid has not particularly affected the process or business of transporting fish. During the pandemic we have been handling about ten shipments of tropical fish a month, each shipment counting approximately 45 boxes of fish, which is similar volume as in the years prior to Covid-19.
“At Skyport, we have always specialized in the import of tropical fish. Our main supplier countries are Indonesia, Malaysia and Sri Lanka, and we work closely with tropical fish wholesalers based in the Czech Republic. We have built up strong relationships with our suppliers, and are able to source the highest quality fish at the most competitive prices. Our tropical fish are Healthy and vibrant and are sure to brighten up any home aquarium.”
“Despite many airlines being late to expand into freight, we have seen a strong movement towards the use of new innovations in the sector to get ahead of traditional cargo-focused airlines which are stuck using older, legacy technology. Undoubtedly, airlines that were already on their digital transformation journey were able to adapt fast.” – Ashok Rajan, Senior VP & Head – Cargo & Logistics Solutions at IBS So.
The air cargo industry is in the midst of a major transformation and digitization is crucial to its success. The changes have led into more efficiency in streamlining approach to managing air cargo, with various processes being automated and made more transparent.
Airlines and other companies in the air cargo industry are turning to digitization in order to gain a competitive edge. By investing in new technologies, they are able to improve their operations and offer a better experience to their customers. In particular, digitization can help reduce costs, improve efficiency and provide a better customer experience.
Firstly, the mind-set in the industry towards digitization has undergone a sea of change, from being a backend cost center to being central to all business initiatives. Visibly, there have been changes on several fronts (a) Most airlines have invested into modern core platforms that are providing reasonably clean and accurate data (b) Selling has gone digital in a big way whether through common channels or direct connectivity (c) Automation on the ground and in warehouses are seeing significant investments and these are giving a good uplift to quality of service (d) Integration between partners and stakeholders are becoming less cumbersome and ( e) generally IT landscapes are becoming far cleaner, simpler and more efficient.
Digitalizing and automating air cargo systems, and moving away from the traditional, old-fashioned paper-based
processes, means airlines can gain actionable ins ight from how their operations are running and make genuinely
informed business decisions that serve customers better and impact the bottom line.
Ashok Rajan, Senior VP & Head – Cargo & Logistics Solutions at IBS software, explains to Air Cargo Update the importance of digitization in the air cargo industry in an email interview.
Boosting cargo revenues
The boost in cargo revenues have been a lifeline for many in the air cargo industry, which has faced unprecedented challenges since 2020. The pandemic has disrupted traditional trade routes and led to a sharp decline in demand for certain types of cargo, such as containerized freight. At the same time, it has caused a surge in demand for other types of cargo.
The boost in cargo revenues have been a lifeline for many in the air cargo industry, which has faced unprecedented challenges since 2020. The pandemic has disrupted traditional trade routes and led to a sharp decline in demand for certain types of cargo, such as containerized freight. At the same time, it has caused a surge in demand for other types of cargo.
Traditionally side-lined by airlines, air freight represented a gilt-edged opportunity for airlines to generate revenues with passenger fleets largely grounded. With cargo yield at previously unheard-of levels, for many airlines, air freight became their lifeline.
“Digitalization is critical to boosting air cargo revenues. Going digital is a 3-pronged approach to boosting the top line. (a) Reach – Take your product to customers and regions that otherwise wouldn’t be serviced by feet on the ground, this either through digital channels or direct connectivity (b) Value Addition – The pandemic has shown
that higher price points are affordable to customers, as long as value can be offered. Being digital can provide the means to creatively construct new offerings and make sure service delivery against those is possible (c) Dynamic Pricing – For long price has been a constant in this industry – this tech backed approach for dynamic pricing is
trying to discover the right price at the right time and therefore allowing airlines to price their services in line with market fluctuations,” says Rajan.
Evolving digital landscape
It’s no exaggeration to say that digitalization has been the difference between airlines that were able to fully capitalize on the opportunity, and those that were not, according to IBS.
“Despite many airlines being late to expand into freight, we have seen a strong movement towards the use of new innovations in the sector to get ahead of traditional cargo-focused airlines which are stuck using older, legacy technology. Undoubtedly, airlines that were already on their digital transformation journey were able to adapt fast.”
While the pandemic has significantly boosted the profile of air cargo with airline decision makers and pushed them to re-evaluate their business models, the onus is now on the air freight sector to keep freight in the boardroom long-term as passenger volume returns.
That requires evidence of value. Key to that is switching the focus to the value of shipments rather than focusing on capacity alone. And digitalization provides the means to do just that.
“At IBS Software, we always stay well ahead of times, advocating the need for a digital push in the airline industry in general and particularly in the air cargo industry. Our core focus has been to build and offer digital platforms ease airlines and GHAs along the digital journey.
“Our efforts are on three fronts (a) Offering a strong digital platform for core operations – this has been done through our market leading iCargo platform, enabling core business transactions to be digitized, allowing for a strong and clean data to be collected and utilized and drive efficiencies (b) A suite of products under the iPartner umbrella which are meant to bridge the digital divide between the disconnected stakeholders in the industry be it between customers and airlines or airlines and GHAs or between airlines themselves (c) We also have a medium to long term strategy in expanding beyond the airport-2-airport operations and offer a holistic logistics platform. The majority of airlines and many ground handlers on board are helping move the industry forward on this front,” Rajan explains.
To support this, IBS Software has developed a vibrant community of airline and ground handling customers and partners that has grown around the platform, encouraging best practice shared to drive air cargo’s digital transformation.
‘Democratization’ of AI technology
When we asked about the use of AI-based tools to drive digitization in the cargo industry, Ashok described the use of AI tools as putting the cargo business on steroids.
“Businesses that embrace digitalization and make the mindset shift to rework legacy systems suddenly find themselves with access to the data they need to make informed decisions. That level of analysis – increasingly enriched by the introduction of AI to the tech mix – helps airlines map their air cargo business end-to-end and make informed, data-driven decisions about their operations. The shift being envisaged.
He continued further that the benefits of digitization are manifold. They can test and refine new products, provide personalized services and eliminate inefficiencies, to name a few. The upshot is that they are far better positioned to increase revenues while also providing a superior customer experience. “We’re also seeing these technologies evolve at great pace and become increasingly available to the entire value chain. The ‘democratization’ of AI technology is a critical development as traditionally access to cutting edge digital capabilities was limited only to the businesses with the deepest resources. This is quickly changing and will continue to change in the coming years, making these tools more and more accessible to any size of business.”
Personalization in digitization
Personalization is intrinsically linked to digitalization in the air cargo sector. This is part of the journey to unlock potential by moving from offering the customer ‘What we have’ to offering them ‘What They Need’, said Rajan.
At a fundamental level, personalization is all about delivering enhanced custome experiences that balance revenues with value and relevance. It’s of paramount importance because it builds deeper relationships by showing customers that cargo businesses understand and value their needs and preferences.
“In a digital landscape with so much information and choice, personalization helps overcome “paralysis by analysis”,
accelerate decision-making, and boost conversion by influencing and guiding customers.
Advances in data analytics and AI help players in the air cargo value chain tailor products and solutions that make customer experiences more relevant and targeted. What’s especially exciting is that there is so much more innovation to come. But that innovation is only enabled by airlines and GHAs fully embracing digital technology.”
Recommendation engines
Recommendation engines in air cargo serve the same purpose as in other industries – they provide a way for businesses to analyze available data and make suggestions to customers based on known preferences and behavior. This is long overdue for any industry that has operated on fixed offerings and pre-negotiated rates.
“As consumers, we are all subject to recommendation engines – whether searching for a flight, picking a movie on
Netflix, or shopping on Amazon. They work behind the scenes to propose one offer over another.”
According to Rajan, broadly, they can be split into two classifications:
1-Content based filtering categorizes products and services according to specific features and attributes, aiming to make a link with the user’s past behavior.
2-Collaborative filtering is a broader behavioral recommendation approach that looks at a user’s previous history and interactions, matching them with that of similar users.
“In the Air Cargo industry, this is a fundamental shift in how businesses are conducted, we ourselves in our platforms are moving the commercial aspects from being a booking system to a selling system, and this shift is a win-win for both the customer and the airline. The recommendations are in routing, timing, add-on services all of which allow customers to play on both axis – (a) moving the service up or down (b) Moving price points based on affordability. The underlying shift is moving the industry more towards B2C behavior from its current B2B approach,” Rajan shared.
For airfreight, there is so much to be gained from improving modern data-driven sales and recommendation engines, he added.
A look into the future
According to Rajan, the air cargo industry is undergoing a digital revolution, in reality digitization is a journey not a destination. The question arises, are we at the forefront of that journey or are we back-markers? The reality is that the sector was initially slow to embrace digital technology compared to other industry sectors, meaning the industry is working from a comparatively lower bar.
“Our vision for a Digital Freight Enterprise is one which (a) engages with its customers digitally (b) Can fully outsource or run its operations on a digitally managed SLAs and workflows (c) completely manages its revenues or finances digitally (d) collaborates with its partners on digital ecosystems (e) can completely engage and clear regulators over digital data and finally makes data and insights core to its operations,” said Rajan.
Technology has made the world smaller and faster.Real time communication with people from all over the world at different time zones through phones and gadgets
