High-ranking representatives of duisport and Port of Antwerp-Bruges have signed a long-term cooperation agreement. duisport CEO Markus Bangen and Jacques Vandermeiren, CEO of Port of Antwerp-Bruges, sealed the far-reaching partnership in the presence of Flemish Prime Minister Jan Jambon.
North Rhine-Westphalia’s Minister for the Environment, Nature Conservation and Transport, Oliver Krischer, as well as the Deputy Mayor of the City of Antwerp and President of the Board of Port of Antwerp-Bruges, Annick De Ridder, attended the event, as did Josef Hovenjürgen, Parliamentary State Secretary in the Ministry for Home Affairs, Municipal Affairs, Building and Digitization of the State of North Rhine-Westphalia.
At the heart of the agreement is the expansion of cooperation in the areas of energy transition, rail and hinterland connections, and port infrastructure. All three areas are of outstanding importance for the reliable supply of industry and the stabilization of supply chains between Germany and Belgium and within Europe.
The European energy system will increasingly focus on sustainable energy sources, with green hydrogen carriers playing a crucial role. The development of solutions for the import, storage and distribution of green hydrogen in various forms is therefore one of the main strategic pillars of the cooperation between the two ports. The goal is to build an international supply chain for hydrogen in which both partners become central hydrogen hubs for Europe.
To achieve this goal, duisport and Port of Antwerp-Bruges want to establish a high-frequency rail shuttle in addition to planned pipeline connections and establish rail as a “rolling pipeline”. The expansion of the hinterland network, the promotion of sustainable multimodal transport connections, and the steady shift to environmentally friendly modes of transport are substantial for the realization of the energy transition.
As both ports aim for climate neutrality by 2050, the development of environmentally friendly port handling equipment is also part of the joint agreement.
For duisport, the cooperation with Port of Antwerp-Bruges is another important step in the expansion of its future network. Similar agreements were already concluded with the ports of Rotterdam and Amsterdam in May and June of this year.
“Our ports have a key role in their regions as leading logistics and industrial centers and are already linked by various multimodal connections. Against the background of the current global challenges, it is only logical that we sustainably strengthen our European partner network and cooperate even more closely,” duisport CEO Markus Bangen said.
“To realize the ambitious plan to become a climate neutral continent, we have to guarantee the European industry reliable and secure access to renewable energy sources. The import, transmission and distribution of green molecules needs short, mid and long term solutions. Developing a robust multimodal supply system will be fundamental to make the change happen. And we are pleased that duisport and Port of Antwerp-Bruges are combining forces to that end,” Jacques Vandermeiren, CEO of Port of Antwerp-Bruges, said.
Teesside International Airport in the UK has opened a new £2.5m cargo handling facility as it seeks to capitalize on growth in trade in the northeast of England.
The purpose-built 21,000 sq ft hangar provides security screening technology, as well as cargo handling, freight-forwarding, customs clearage and storage.
The facility can also be used for specialized charter flights for both air and road freight.
As part of the development, the airport now has secured Regulated Agent status from the UK Civil Aviation Authority, allowing it to handle secure cargo at its site.
The facility is expected to generate 30 jobs and the airport also recently appointed a head of cargo.
“The new facility will all serve to capitalize on the huge opportunity within the region,” the airport said. “For example, a total of £2.9bn of goods were exported from the northeast in quarter four 2021, with a 47.3% recovery from the pandemic low point in quarter two 2020, higher than the national average.
“It will target the some 71,000 businesses within an hour’s drive of the airport, as well as those further afield.”
A new £200m logistics and industrial park is also being developed at Teesside International.
Cathay Pacific has added cargo capacity and has been in close dialogue with suppliers as it prepares for what is expected to be a muted peak season.
The Hong Kong-based airline said it has been adding extra passenger flights, cargo-only capacity and has ramped up freighter operations ahead of the peak.
General manager cargo service delivery Frosti Lau said, “We have already increased frequency to the US, and we are now operating daily to London Heathrow.
“Our freighters are operating a full schedule, supported by cargo-only passenger operations focused on regional destinations.
“This extra capacity will help as we prepare for a busy peak, although we are anticipating it may not be as sustained and pronounced as last year’s.”
Lau explained that inflation, supply chain disruption and Covid-19 restrictions in China continue to affect consumer demand and production capabilities.
On the other hand, the rumors of high-tech product launches later in the year may help stimulate demand.
Lau said that the airline has also been working closely with suppliers to prepare for the peak season.
“As flights are being adjusted, we are working with our suppliers in outports to ensure that they are ready to handle our flights smoothly and to avoid some of the disruption we have seen post-pandemic,” Lau said.
“Our teams across Europe, in particular, have done a fantastic job in preparing for our return.”
Last week, Air Cargo News reported that the market remains flat as the industry heads towards the traditional peak season.
Flexport said that demand from north China was low and the overall market is stable.
“[From south China] the market demand remains soft for both the transpacific eastbound and Far East-Europe westbound (FEWB) lanes and rates are stable,” the forwarder added.
As the Executive Vice President of Global Strategy and Development at Dallas/Fort Worth International Airport, John Ackerman leads the airport’s efforts to improve its global profile. In this role, he oversees the airport’s Airline Relations, Cargo, Research and Analytics, and Government Relations functions.
Ackerman who joined DFW in January 2015 leads the company’s efforts to raise its global profile through international air service and business development. He plays a key role in developing the Airport’s strategic plan, which focuses on being the premier gateway between Asia and Latin America for both passengers and cargo.
Before joining DFW airport, Ackerman worked as the Chief Commercial Officer at Denver International Airport, was a pilot and executive at United Airlines, and was a Senior Director of Product Management at Standard & Poor’s.
“I have been an aviation professional for virtually my entire career, with a roughly equal split between military aviation, airlines, and airports.While I started as a pilot, I found that combining my love of flying with the business of airports and airlines is where my true passion lies. I enjoy building things- teams, businesses, and strategies,” he tells Air Cargo Update.
His favorite pastimes include any outdoor activities.
“I like almost any outdoor activitydistance running and stand up paddleboarding as oen as possible, hiking and climbing in the mountains of Colorado whenever I can get away. I am also passionate about animals, and I am founate to serve on the board of two nonprofit organizations dedicated to
helping animals,” he shared.
Ackerman adores cooking because it grants him both freedom and creativity. Not to mention, with cooking comes eating—and who doesn’t love that?
Ackerman’s favorite quote is from American celebrity chef, author and travel documentarian Anthony Michael Bourdain.
“If I’m an advocate for anything, it’s to move. As far as you can, as much as you can. Across the ocean, or simply across the river. Walk in someone else’s shoes or at least eat their food. It’s a plus for everybody.”
Bourdain’s inquisitiveness regarding various places and people he visited continue to inspire Ackerman to explore new opportunities. “I thoroughly enjoy learning and trying new things – when I travel, I return with an abundance of new friends, experiences, flavors and memories.”
If Ackerman wasn’t an aviation professional, he would have taken up the role as a banker.
“I would likely have pursued a career in banking if I had not discovered my passion for aviation. The beauty of the aviation industry is the vast array of potential positions – from airlines and airports to manufacturers and finance, there is a role to fit any interests and skillset.”
Ackerman eagerly anticipates being able to travel freely again, reconnecting with business colleagues globally and exploring new places, and having novel experiences.
“We expect the supply of green hydrogen to increase significantly during the next couple of years, since many industries will depend on it to reduce CO2. However, we cannot wait to decarbonize transpo, we are already running late. So, my clear message to all transpo companies is to sta the journey today with baery electric, biogas and the other options available. The fuel cell trucks will then be an impoant complement for longer and heavier transpos in a few years from now.”
– Roger Alm, President of Volvo Trucks
Imagine a truck that only emits water vapor, produces its own electricity onboard and has a range of up to 1,000 km. It’s possible with fuel cells powered by hydrogen, and Volvo Trucks has started to test vehicles using this new technology.
Hydrogen-powered fuel cell electric trucks will be especially suitable for long distances and heavy, energy-demanding assignments.
To decarbonize transport, Volvo Trucks now offers battery electric trucks and trucks that run on renewable fuels, such as biogas. In the second half of this decade, a third CO2-neutral option will be added to its product portfolio – fuel cell electric trucks powered by hydrogen.
“We have been developing this technology for some years now, and it feels great to see the first trucks successfully running on the test track. The combination of baery electric and fuel cell electric will enable our customers to completely eliminate CO2 exhaust emissions from their trucks, no maer transpo assignments,” said Roger Alm, President of Volvo Trucks.
The fuel cell electric trucks will have an operational range comparable to many diesel trucks – up to 1 000 km – and a refuelling time of less than 15 minutes. The total weight can be around 65 tons or evenhigher, and the two fuel cells have the capacity to generate 300 kW of electricity onboard.
Customer pilots will start in a few years from now and commercialization is planned for the latter part of this decade. “Hydrogen-powered fuel cell electric trucks will be especially suitable for long distances and heavy, energy-demanding assignments. They could also be an option in countries where battery charging possibilities are limited,” Alm explained.
Generates its own electricity—A fuel cell generates its own electricityfrom the hydrogen onboard instead of being charged from an external source. The only biproduct emitted is water vapor.
Fuel cells delivered by cellcentric—The fuel cells will be supplied by cellce ntric – the joint venture between the Volvo Group and Daimler Truck AG. Cellcentric will build one of Europe’s largest series production facilities for fuel-cells, specially developed for heavy vehicles.
More green hydrogen needed—Fuel cell technology is still in an early phase of development and there are many benefits with the new technology, but also some challenges ahead. One of them is largescale supply of green hydrogen. Another is the fact that refuelling infrastructure for heavy vehicles is yet to be developed.
“We expect the supply of green hydrogen to increase significantly during the next couple of years, since many industries will depend on it to reduce CO2. However, we cannot wait to decarbonize transport, we are already running late. So, my clear message to all transport companies is to start the journey today with battery electric, biogas and the other options available. The fuel cell trucks will then be an important complement for longer and heavier transports in a few years from now,” Alm noted. Source: www.volvotrucks.com
Volvo Trucks: First in the world to use fossil-free steel in its trucks
Volvo has introduced fossil-free steel in its trucks, the first truck manufacturer in the world to do so.
The steel is produced by the Swedish steel company SSAB and the heavy-duty electric Volvo trucks will be the first to include it. The steel will first be used in the truck’s frame rails.
The steel from SSAB is produced using a completely new technology, based on hydrogen. The result is a much lower climate impact than conventionally produced steel. Small scale introduction of the steel in Volvo’s heavy electric trucks will begin in the third quaer of 2022.
“We will increase the use of fossil-free materials in all our trucks to make them net-zero not only in operation – but also when it comes to the materials they are built of,” said Jessica Sandström, Senior Vice President Product Management, Volvo Trucks.
The first steel produced with hydrogen will be used in the truck’s frame rails, the backbone of the truck upon which all other main components are mounted. As the availability of fossil-free steel increases, it will also be introduced in other pas of the truck.
90% of a Volvo truck can be recycled Today, around 30% of the materials in a new Volvo truck come from recycled materials. And up to 90% of the truck can be recycled at the end of its life.
“We are continuously striving to fuher minimize our climate footprint. We are also moving towards greater circularity in both our operations and our trucks,” said Sandström.
Volvo Group is collaborating with SSAB on fossil-free steel since 2021. The first machine, a load carrier made
of fossil-free steel, was showcased in October 2021. Fossil-free steel will be an impoant complement to the traditional and recycled steel used in Volvo’s trucks.
Volvo Trucks said it is commied to the Paris agreement and to achieving net-zero greenhouse gas emissions in the value-chain by 2040, at the latest.
“ERP can be thought of as the glue that binds together the various systems that an organization might use. By having one application with one inteace, ERP allows the different depaments to communicate and share information across the organization more easily.” – Tristan Koch, Awery Aviation Soware Chief Executive Officer
Enterprise Resource Planning (ERP) systems facilitate the flow of information between functions
within an organization and its suppliers and customers. Air cargo companies have been using ERP systems for many years to manage and plan the movement of air freight cargo.
An ERP system for a cargo airline typically includes modules for: inventory and warehousing, freight forwarding, air cargo tracking, airplane loading and unloading and customs and border management.
Air cargo is a fast-paced, high-volume industry that needs a comprehensive ERP system to manage its complex operations. An ERP system can help air cargo businesses streamline their processes, improve communication, and make better decisions.
Some of the benefits of ERP in the
air cargo industry include:
1. Improved communication and coordination between departments.
2. Real-time data analysis for better decision-making.
3. Streamlined processes and improved efficiency.
4. Increased visibility into the supply chain.
5. Enhanced customer service.
6. Reduced costs.
The global enterprise application market size is estimated to be worth $259.51 billion by the end of 2022, according to a new study by Grand View Research, Inc., registering a 7.8% CAGR during the forecast period.
Tristan Koch, CEO of Awery Aviation Software, explains why ERP is a necessity in the air cargo industry and how it allows air cargo bus ines ses to manage their operations more efficiently and effectively, leading to a better customer experience in an email interview.
Integrating cargo work flow
An ERP software system can help businesses in the cargo industry manage and integrate their various processes and components in one place. Such a system can integrate all workflows from flight planning, crew management, flight manifests, sales, marketing, finance, human resources and much more.
“ERP can be thought of as the glue that binds together the various systems that an organization might use. By having one application with one interface, ERP allows the different departments to communicate and share information across the organization more easily.
“This allows the different departments to communicate and share information across the organization more easily. The Awery ERP is also valuable in creating efficiencies across the workstreams and in providing real time-shared information about the activity and state of different divisions, to enable quicker and better-informed decisions to be made,” explains Koch.
Web-based ERP solution
A good ERP system can make all the difference in air cargo companies, helping to manage and streamline operations, improve efficiency, and reduce costs. When choosing an ERP system, it is important to make sure it is tailored to the specific needs of the air cargo industry, according to Koch.
“Awery’s ERP applications can help a corporation become more self-aware and collaborative by joining up data and information about shipment management, sales, finance, warehousing, and people together. Awery ERP can provide a full turnkey solution tailored to a customer’s needs or it can connect different 3rd pay technologies used by each pa of a business.
“It helps reduce and remove costly manual duplication of data entry and incompatible technologies. For example, you can use Awery’s accounting package, or we integrate a 3rd party solution like SAGE. Each customer can define their own modular system.”
Awery ERP are now all cloud-based solutions using AWS (Amazon Web Services).
“We can, if a customer requires, offer physical server solutions. The advantages of cloud-based software is that it offers remote, web-based access making it a much more flexible tool.”
Moreover, an ERP promotes the free flow of communication across an organization and results in increased synergies between different business areas, increased efficiencies as processes are streamlined and information is readily accessible to those that need it; and reduced costs associated with outdated and ineffective technology.
Tristan states that adopting an ERP may be a costly endeavor, but the return on investment (ROI) may be achieved quickly. Most certainly, the benefits realized (e.g., increased productivity and reduced administrative costs) may far outweigh the costs to introduce an ERP.
Why the air cargo industry should adopt ERP?
Founded over 30 years ago, Awery has over 80 clients worldwide and it’s been widely used by the aviation sector across Cargo Airl ine s , GS SAs , Cha rt e r brok e r s , ECommerce providers and various other aviation service providers.
Geographically, Awery solutions are being used widel y a c ros s the European marketplace with existing and rapidly growing presence in Asia and the United States.
Awery has developed a number of solutions designed to be easily integrated with other providers’ software.
One of Awery’s key standout strengths is its ability to provide cutting edge technology to any organization regardless of that organi z a tion’ s own technologi c a l parameters.
“Additionally, we have differentiated ourselves from our competitors by offering our products either as a white label option, where customers apply their own branding and logo to our software, or as Awery technology available on the open cargo marketplace.
Our eMagic AI One of Awery’s key standout strengths is its ability to provide cutting edge technology to any organization regardless of that organization’s own technological parameters.
“We have developed a number of AI (Aificial Intelligence) tools that reduce a lot of the manual workload that has plagued the industry. for example conves inbound email text and images to digital transactions,” said Koch.
Integration with 3rd party systems to provide key connectivity is also essential as often clients require bespoke customization that relies on additional software. Awery provides that digital bridge.
Ensuring regulatory compliance
Koch said the visibility of your resources are critical to effectively managing them. And that data is the new global currency and utilizing this means more efficient processes. Regulation and security remain at the top of the agenda. Awery had successfully developed tools within its ERP that ensure regulatory compliance as well as on financial (reporting and tax requirements) and labor laws. Thus, using Awery ERP eliminates costly errors and, reduces manual processing of data and provides commercial advantages through business cycle synergies, real time analytics best user experience and quickest time to market. “At Awery, we provide a plug and play ERP solution. Expectations from today’s users are that it should be as intuitive as using your smartphone. We actually do UX (User Experience) testing of some of our products. For example, our CargoBooking portal which gives the best and easiest UX of any online Air Cargo booking portal, we trialed on my two daughters who as teenagers are used to being able to buy any product or service in a few clicks. With no industry experience within 15 minutes, they were able to make AWB bookings – that was when we knew we had got it right,” Koch concludes.
Aviation contributes about 4% to human-induced global warming as jet fuel burn produces CO2, nitrogen oxide, soot, water vapor and sulfate aerosols. The industry’s progress in cuing emissions
to date is disappointing but by 2050, the use of Sustainable Aviation Fuel or SAF will rise from only about 100 million liters in 2021 to at least 449 billion liters a year.
The question on everyone’s mind in the aviation industry is this: Is the goal of Net Zero carbon emissions by 2050
achievable? Going by the intent, the answer is ‘Yes’. But the ground reality is that ‘the sector needs to massively step-up efforts on SAF’.
Scientists have been sounding the alarm bells that climate change is still the greatest threat to human health in recorded history. The Secretary General of United Nations Antonio Guterres has said climate change is a ‘crisis multiplier’ that has profound implications for international peace and stability.
Various research reports indicate that aviation contributes around 4% to humaninduced global warming as jet fuel burn produces CO2, nitrogen oxide, soot, water vapor and sulfate aerosols, all of which interact with the atmosphere and impact climate.
The aviation sector is aiming to reach netzero emissions by 2050, relying on SAF usage to rise from around 100 million liters (26 million gallons) a year in 2021 to at least 449 billion liters a year by 2050, a humongous challenge.
Aviation has to get its act right
Indeed, it is going to require huge efforts from all stakeholders. As per reports, the aviation sector’s progress in cutting emissions has been disappointing to date. For example, in February 2021, research on the world’s largest 58 airlines found even the best-performing ones were not doing enough to cut emissions.
At last year’s COP26 (Conference of Parties comprising 197 countries) climate change summit in Glasgow, the industry merely reasserted a commitment to a plan known as the Carbon Offsetting and Reduction Scheme for International Aviation. The scheme relies on carbon offsetting, which essentially pays another actor to reduce emissions on its behalf at lowest cost, and doesn’t lead to absolute emissions reduction in aviation. It also encourages alternative cleaner fuels, but the level of emissions reduction between fuels varies considerably.
Achieving fossil-free flights requires replacing jet fuel with alternatives such as sustainable fuels or electric and hydrogen propulsion and that has to happen in double quick time. Governments, airlines, airports, OEMs and other stakeholders have to do more to achieve ‘net zero’ emissions. Curtailing emissions need a bouquet of solutions.
With passenger and cargo numbers going to explode and the number of airplanes that are going to be up in the sky, a lot more needs to be done in terms of fuel alternatives. The International Air Transport Association (IATA) expects overall traveler numbers to reach 4.0 billion in 2024 (counting multisector connecting trips as one passenger), exceeding pre-COVID-19 levels (103% of the 2019 total).
Airbus said that SAF is a carbon-reduction solution that is available for use in aircra and helicopters operating today. It is a “drop-in” fuel because it can be blended up to 50% with conventional jet fuel without any engine modification required.
7.4 billion parcels by air every year
On the freight side, IATA reported that 328 billion letters and 7.4 billion postal parcels are sent every year and airmail plays an essential role in their delivery. While the emergence of electronic communications caused a dramatic decrease in the number of letters sent, more and more parcels are delivered daily thanks to e-commerce and this is going to increase exponentially. So will aircraft numbers increase.
Boeing has forecast that a combination of 4.0% annual average traffic growth, measured in ton-kilometers, and a proven need for dedicated freighter capacity means the freighter fleet will grow by more than 60% over the next two decades.
By 2039, 2,430 freighters are forecast to be delivered, with approximately half replacing retiring airplanes and the remainder needed to meet projected traffic growth. More than one-third of these deliveries will be new wide-body cargo airplanes; nearly two-thirds of the deliveries will be conversions from passenger airplanes. This will be in addition to the passenger planes that will be in the sky carrying freight in the belly-hold.
In such a scenario, the challenge indeed is humongous. The CEO of Etihad Airlines, Tony Douglas has said, “The biggest challenge to commercial aviation is the commitment that’s been made to net-zero carbon emissions by 2050.”
And the biggest stumbling block is the jet fuel which the aviation sector is highly dependent on and seemingly cannot do without it. Though aviation was becoming about 3% efficient each year, passenger demand was increasing at about 5%, thus the gap kept widening, requiring more planes up in the sky. It is only of late that we are hearing of SAF which are being tested and have had some successful flights.
Alternatives are expensive as of now
In a Guardian interview Dan Rutherford, Director of Aviation at the International Council on Clean Transportation (ICCT) has said that advanced waste biofuels are cheap and has good life-cycle emissions, but its supply is limited. “Using these fuels exclusively for aviation would provide for only about 2% of jet fuel use in the European
Union and the United States of America.” Rutherford raises hopes by mentioning ‘electrofuel’ (made using clean electricity and hydrogen) could have an ‘almost unlimited supply’ but can be very expensive to make, as of now.
Airbus, Boeing and others working hard towards the goal
The two big aerospace behemoths – Airbus and Boeing – have made commitments towards ‘net zero’, but whether it is achieved by 2050 is a million-dollar question. Airbus believes that SAF is one of the aerospace industry’s best decarbonization solutions that can be used in both in-service fleets and the flying fleets of tomorrow.
Airbus said that SAF is a carbon-reduction solution that is available for use in aircraft and helicopters operating today. It is a “drop-in” fuel because it can be blended up to 50% with conventional jet fuel without any engine modification required.
Similarly, Boeing in February this year bought two million gallons of blended sustainable aviation fuel from EPIC Fuels for its commercial aeroplanes’ operations in Washington state and South Carolina. The SAF purchase, which is claimed to be the largest by an airframer, is part of Boeing’s aviation decarbonization goal.
DHL in strategic collaboration for SAF
DHL Express, division for global courier, express, and parcel services, launched a strategic collaboration with bp and Neste to source over 800 million liters of SAF through 2026, expecting to save approximately two million tons of carbon dioxide emissions over the aviation fuel lifecycle. To put that into perspective: it equals the emissions of about 400,000 passenger vehicles. And with that amount, DHL can fuel approximately 1,000 flights per year between Cincinnati (USA) and Leipzig (Germany) for about 12 years! “There is no way around sustainable logistics in the future. We are deciding today what kind of world we and our children will live in 30 years from now,” said Frank Appel, DHL’s CEO.
Boeing Environmental Sustainability VicePresident Sheila Remes said, “SAF is a safe, proven, immediate solution that will help achieve our industry’s long-term commitment to net-zero carbon emissions by 2050.”
IATA has said that success will require the coordinated combined efforts of the entire industry (airlines, airports, air navigation service providers, manufacturers) and significant government support. The net-zero objective will be met through a combination of maximum elimination of emissions at source and the use of approved offsetting and carbon capture technologies.
While many in the aerospace industry are on course towards ‘net zero’ by 2050, the reality is that aviation presently makes up for about 4 % (about 900 billion tons of CO2 annually) of worldwide carbon emissions and this percentage is likely to go up with more and more people taking to the skies. And while efforts are on to reach the goal by 2050, we hope that the industry stays the course.
Air cargo carriers that are on course in reducing carbon footprint
Without exception, we believe, each segment of aviation is working towards reducing carbon footprint. However, there are a few global air cargo carriers who are leading from the front and seemingly on course to achieve net-zero emission by COP26’s deadline of 2050. These carriers include: FedEx; DHL; DB Schenker; Seka; Lufthansa Cargo; Kuehne+Nagel; Air France KLM; Martinair, among others. We have included two airlines from India – IndiGo and SpiceJet, which have taken steps in that direction.
Kuehne+Nagel joins Air France KLM Martinair Cargo SAF program
The program began with the launch of the first carbon neutral airfreight lane between North America and Europe on New Year’s Day. This initiative marks another step towards the commercial deployment of alternative fuel and the companies’ commitment to a sustainable future for aviation. The year-round transportation of all Kuehne+Nagel cargo on board daily Air France KLM flights from Los Angeles to Amsterdam will be fully covered by SAF.
This first carbon-neutral lane underlines the strong sustainability programs of both partners, Kuehne+Nagel’s Net Zero Carbon program and AFKLMP Cargo’s SAF program, which aim to connect people and goods through sustainable logistics. Yngve Ruud, member of the management board of Kuehne+Nagel, responsible for air
logistics, said: “The first zero emission route marks the beginning of our journey into CO₂ neutral air freight and is another step towards achieving complete carbon neutrality by 2030. At Kuehne+Nagel, we are ready to take leader ship and responsibility for the next generation of air transport and encourage our customers and industry colleagues to join us in making sustainable choices available.”
FedEx funds research on storing excess carbon
Global giant FedEx in its efforts to achieve carbon neutral operations by 2040 has pledged $100 million to help establish the Yale Center for Natural Carbon Capture, where researchers will focus on ways to remove and store Earth’s excess carbon; Convert its entire parcel pickup and delivery fleet to zero-emission electric vehicles; Build on its FedEx Fuel Sense initiatives to continue working to reduce aircraft fuel consumption; and Continue to invest in alternative fuels which could reduce aircraft and vehicle emissions. By 2030, it plans to get 30% of its jet fuel from
alternative fuels.
FedEx Chairman and CEO, Frederick W. Smith has said “We have a responsibility to take bold action in addressing climate challenges. This goal builds on our longstanding commitment to sustainability throughout our operations, while at the same time investing in long- term, transformational solutions for FedEx and our entire industry.”
Lufthansa Cargo operates 100% SAF-powered charter freight
Lufthansa Cargo is one of the pioneers in the use of SAF. Last year, over 1% of fuel used by cargo aircraft was SAF. It has the distinction of operating the world’s only regular full charter freight connection that is 100% SAF-powered. Together with its partner DB Schenker, Lufthansa Cargo saves around 174 tons of conventional kerosene per week.
In October 2021, Lufthansa Cargo became a pilot customer of the world’s first production plant for power-to-liquid fuels in Emsland in northwest Germany. Together with the operator, NGO atmosfair, it is promoting the ongoing development and market launch of industrially produced, CO2-neutral PtL fuel.
Be s ide s tha t, Lufthans a Ca rgo i s continuously investing in modernizing its fleet. Since October 2021, it has switched completely to the Boeing 777F – today’s most modern freighter with the best environmental performance. It has placed orders for its even more efficient successor, the B777-8F, which we will start flying in 2027.
Similarly, its AeroSHARK technology, a special coating reduces the frictional resistance of an aircraft by more than 1%. From 2022, this technology will be rolled out across its fleet of eleven B777F freighters, saving around 3,700 tons of kerosene or about 13,000 tons of CO2 emissions per year. Also, it has used lightweight containers on its flights, leading to weight reduction of 14 kg per container and fuel savings totaling 2,160 tons per year.
DB Schenker’s greener logistics
DB Schenker and Lufthansa Cargo have decided to continue their fossil-free freighter flights between Frankfurt (FRA) and Shanghai (PVG). The joint offer towards greener logistics will extend until at least October 2022. By utilizing sustainable aviation fuel (SAF) and additional upstream compensation, they will save another 21,000 tons of CO2e.
The duo has saved 31,000 tons of CO2e since starting their cooperation end of 2020. The weekly flight rotation continues to be the world’s only regular full charter fully covered by SAF. DB Schenker has also become an ac tive member of theSustainable Air Freight Alliance (SAFA), which strives to encourage freight forwarders to partner in an effort to track and mitigate CO2 emissions during freight transport.
SEKO Logistics joins SAFA
SEKO Logistics has joined the Sustainable Air Freight Alliance (SAFA) to accelerate its global decarbonization program and help clients achieve their own sustainabilitygoals. The Sustainable Air Freight Alliance (SAFA) is a buyer-supplier collaboration between shippers, freight forwarders and airlines to track and reduce carbon dioxide
emissions from air freight and promote responsible freight transport. “We have a responsibility to join other global business leaders in this initiative because our industry must do more to protect our planet for future generations,” said James Gagne, President & CEO of SEKO Logistics. “
In October 2021, Luhansa Cargo became a pilot customer of the world’s first production plant for power-toliquid fuels in Emsland in nohwest Germany
Indian carriers not behind
SpiceJet and GMR Group are panering with Boeing and French companies respectively to explore oppounities for
development and use of SAF. French companies Safran, Axens and Airbus have teamed up with GMR Group to examine the development of SAF demonstrator, based on agricultural products. Similarly, Boeing is panering with SpiceJet and CSIRIndian Institute of Petroleum. They will work together to leverage SAF supply from CSIR-IIP and its production paners and licensees to help the airline decarbonize its fleet. India’s first international SAF flight with Airbus A320neo was by IndiGo in February this year. Mr. Ronojoy Dua, Chief Executive Officer, IndiGo said, “We are pleased to take delivery of this Airbus aircra which will run on Sustainable Aviation Fuel, as pa of our journey towards sustainable aviation. At IndiGo, we recognize the impoance of adopting sustainability in aviation and this is another step towards a cleaner environment. We look forward to embracing more such initiatives to reduce impact on the environment in line with our ESG goals.”
Another prime offering is the e-Marketplace, an online poal for booking door-to-door cargo transpoation services, offering competitive pricing and total transparency of the best shipment
options across all modes of transpo. The plaorm connects supply chain stakeholders; such as freight forwarders, Customs brokers, shipping lines, airlines, transpoers, consignees, warehouse operators, rail operators and regulatory authorities, enabling them to adopt modern logistics practices that will allow beer response to customer demand, increased efficiency and a more competitive industry landscape in air cargo space.
Digital transformation is heralding the next era in logistics and supply chain management and in the forefront is Kale Logistics Solutions, a global IT solutions paner for several Foune 500 companies worldwide. With in-depth domain knowledge and technical expeise, Kale Logistics is working on creating the world’s largest digital logistics cloud for the international supply chain by creating a global network of airpos and pos connected digitally through its Digital Corridors. Explaining in detail to Air Cargo Update the digital expanse of Kale Logistics Solutions is Amar
More, CEO and Co-Founder More holds the distinction of being the first and only Indian to receive the “CILT International Young Achiever Award – 2009 for his invaluable contributions to deliver tech solution to the logistics industry.
Digital transformation is a given thing now. Is the air cargo sector receptive to it, considering the high costs of going totally digital, more so, when the logistics industry is going through a margin squeeze?
Yes, Digital Transformation (DT) is the right thing to happen to the industry even though, a bit late, but not too late. The air cargo industry is receptive and understands the value DT will bring to their businesses. The mindset toward DT is not cost-centric but investment-centric, where the industry will reap benefits in the coming years and become sustainable.
The buzzwords in today’s board meetings are disruptive technologies – AI, ML, IoT, Blockchain, Cloud, Mobility, and AR are taking the center stage. The usage of these technologies has surpassed discussion and conceptualization to actual applications in business scenarios. For example, we have AI-based truck management systems at airports, Blockchain-based digital corridors, Machine Learning-enabled document to EDI conversion and many more.
Can you give some cost-benefit analysis for a freight forwarder such that the freight forwarding community understands the importance of digitization?
Every actor in the supply chain is touched by digitization in today’s world. In the past three years, the freight forwarding community has taken a quantum leap in tech adoption. The pandemic drove the need to go digital. Today, freight forwarders are facing two paths: digitize their processes and catch up with the industry, or become
obsolete and face very high costs. When it comes to addressing forwarders for digitization, we are dealing with a very
heterogeneous group with different levels of automation needs, customer expectations and scale of operations. Digitization benefits are both tangible and intangible for them. Tangible benefits including savings on charges like storage, demurrage, detention and abandoned cargo are very much possible. Document exchange can be executed within a few minutes as opposed to a few days previously. The other benefits, which cannot be immediately quantified are better customer service, fully automated sales, end-to-end tracking, document management, complete cargo visibility and prevention of revenue leakage with automated accounting and invoicing.
What segments of air cargo sector still continue with legacy systems that you think they can easily migrate to digital?
Any process which still needs paper or manual operations can be migrated to digital easily. In order to make digitization a success, every aspect and process should be touched by it. It should start with core operations and then move to other peripheral processes. We have generally observed that the SMEs in the air cargo supply chain are fragmented and are laggards in tech adoption. But with cargo community systems such as Kale’s Air Cargo Community System (ACS) and Logistics e-Marketplace, this gap is bridged. These unified platforms make technology, data, and best practices available and affordable to all supply chain stakeholders, including the SMEs. For example, in Mumbai International Airport and Bengaluru International Airport we have our CCS, which has 98% adoption, enabling the entire air cargo value chain to work as a synchronized operation.
One of the concerns of digital is the security of data, how does Kale address this?
With changing IT environments, cloudbased solutions offer agile and robust ondemand infrastructure with benefits such as stability, cost efficiency, and more. We must not forget concerns related to cyber security. More attempts have been made to steal passenger data (personal data, credit cards etc.) than cargo. Having said that, a shipment can often involve data or intellectual property transfer between up to ten separate parties across the globe, hence there is enough motivation for hackers to look at cargo data as well.
However, if there is an additional layer of a CCS, which typically has seven layers of security, and additional security layers provided by leading cloud providers like Microsoft and Amazon, the cyber security risks to the larger stakeholder systems go down significantl y. Icall it the democratization of cyber security. Cargo Community System (CCS) can democratize cyber security and help provide better security infrastructure to the smaller players and, by being a buffer layer with bolstered world-class security infrastructure, reduce the risks for the systems of larger players, too.
Digital being very dynamic, it calls for constant innovation. Can you name one game-changing innovation of Kale in the logistics industry? Also give the gamechanging attributes.
A cargo community system comes with some limitations as it has geographical boundaries, and to overcome the same and achieve larger synergies globally, one has to think beyond cargo community systems.
This brings us to the future of cargo community systems i.e., the digital trade corridor. The Digital Air Freight Corridor aims at creating a completely transparent supply chain through the exchange of real-time status of shipments between two airports and exchange of shipment data to eliminate duplicate processes. For example, shipment arrival information can be shared beforehand with the rightful stakeholders in the destination airport so that the Customs, handlers, and other stakeholders are well informed and prepared to handle the incoming freight on time. We have successfully established the first Digital Air Freight Corridor between India and Netherlands, powered by Blockchain.
Another prime offering is the e-Marketplace, an online portal for booking door-todoor cargo transportation services, offering competitive pricing and total transparency of the best shipment options across all modes of transport. The platform connects supply chain stakeholders; such as freight forwarders, Customs brokers, shipping lines, airlines, transporters, consignees, warehouse operators, rail operators and regulatory authorities, enabling them to adopt modern logistics practices that will allow better response to customer demand, increased efficiency and a more
competitive industry landscape in air cargo space.
The platform can connect with third-party systems, cargo community systems and systems of the airport authority and terminal operators to provide status updates. Along with digital, there is talk about sustainability. Please explain with specific examples how you factor in sustainability in customer operations. Sustainability is now a mega trend, as per the World Economic Outlook Jan 22. It’s no longer just important but a necessity. There is a perception by some airlines, airports and ground handlers that aviation’s reputation comes from the passenger business so there is no need to invest in sustainable cargo solutions as these are not visible. We must collectively change this situation.
We at the airfreight industry have a collective responsibility to our customers, employees and future generations to develop solutions creating a positive impact on people and the planet in ways that enhance business success, which in turn will lead to enhanced global prosperity.
Our CCS is developed as per United Nations recommendation 33, which sets the framework for sustainable trade facilitation through paperless operations. Kale’s Cargo Community System, used for airport and maritime community systems, enables electronic communications between multiple supply chain stakeholders. We want to add momentum to the global sustainability drive and be a key influencer for airports, ports, and supply chains globally to go paperless, improve digital connectivity, and reduce carbon emissions.
A study by Kale Info Solutions on the impact of digitization at Atlanta Airpo, Georgia, USA, has demonstrated CO2 and fuel savings, as well as reduced labor costs and close to 2,000 man-hours saved. The study showed that by using digital tools, the Atlanta Airpo Community, powered by Kale’s digital solutions, had saved nine tons of CO2 from being processed since the beginning of 2021: the equivalent of planting more than 1,500 trees. The study looked at 1,839 shipments, 389 trucks, and 680 tons of cargo going through Atlanta Airpo for the first seven months of 2021.
In total, more than 5,650 liters of fuel, USD 69,000 of labor costs, and 1,945 man-hours were saved by using Kale’s Slot Management tool to organize and facilitate the arrival and loading of trucks at the airport.
After two bad years due to Covid-19, how is the logistics industry looking and how can companies like Kale help them recover faster?
The last two years have been exceptional for air cargo as the pandemic induced just not uncertainty, staff shortages, and health risks but also made way for an eCommerce boom with congestion and high dwell times. These times have shown loud and clear that the logistics industry needs to stand unified to fight this battle.
As per WHO, the COVID-19 virus stays on paper for 72 hours, so contactless and paperless operations were the requirement of the industry. CCSpromoted this with Single Window Systems, powered by autonomous data exchange, online payments, eapprovals, digital signatures, barcoded gate-pass, digital customs, and e-delivery orders. The stakeholders enjoyed benefits, such as improved customer satisfaction with beer shipment visibility, improved data accuracy by 90%, security and reduced cost.
One of the most relevant offerings from our CCS is Truck Slot Management; here all truck arrivals and departures are managed as per slots to avoid gate congestion. Truckers experience much lower wait times at the terminal gates, & all documentation is predone before the truck reaches the terminal. The handler is equipped with advanced shipment information to plan the resources, equipment, and warehouse. The airlines receive an IATA-compliant e-AWB. So, all the actors are well synchronized, which ensures the cargo flow is seamless and quick, along with significant cost savings.
We hear some airports in Europe, including Heathrow, are stretched to deal with both passenger and cargo operations, how do you think technology/digital can help in addressing this resource crunch?
Business continuity was a big challenge during the pandemic times, with legacy systems and manual operations, the air cargo operations were poorly affected. Remote working was a novelty and the airports were not geared up to handle staff shortages. Because of the uncertainty of the times and the likely realities of the “new normal,” more and more airports are now charting the course for their journeys toward cloud computing and digital transformation.
Cloud-based applications enabled workfrom-home. Cargo operations continued uninterrupted with robust cloud-enabled platforms which enhanced productivity and collaboration. There was no need for heavy investments on infrastructure or highly trained staff to work on CCS.
Another point of contention was the COVID-19 virus staying on paper for 72 hours as per WHO and the paper-intensive air cargo industry had to move to paperless operations. This was an opportunity in adversity for the industry to adopt automation and digitization for information exchange, thereby making the entire supply chain efficient and agile.
Could you give details of your global operations – in how many countries you are present, the size of your client base, and the markets you are focusing on?
We have more than 5,000 customers globally in 30+ countries. We have been successfully engaging with 100+ air cargo stations across the world. We are focusing on North America as this is a big market for air cargo, and the geography is very receptive to digitization. We are engaging with Atlanta, Vancouver, Boston and many more airports are talking to us at this point in the region.
What are the challenges for a digital company such as yours when it comes to the logistics sector?
Unlike other industries, the logistics industry has varying degrees of IT maturity amongst its stakeholders. Large players have sophisticated IT solutions to manage their end-to-end operations, but the SMEs would still be on Excel-based data or worse maintain physical files. Though they are disparate in operations, what links them is the common data and cargo they handle at various times during the shipment journey. With different contours of IT systems, what suffers is the movement of cargo across the supply chain. There is data discrepancy, time-consuming operations, and a lack of trade visibility and transparency. Therefore, making the entire supply chain inefficient
and non-conforming.
Making the logistics fraternity aware of the benefits of digitization is the most critical part. In several regions, they are still reluctant for various reasons. In the Middle East especially, stakeholders believe that digitization will bring extra costs, and they need to set up a separate infrastructure for the same. However, not many understand that the tech solutions do not require a separate infrastructure cost.
What is Kale’s roadmap, say for the next 5 years?
We strive hard not only to stay relevant but try to create a digital future for the industry. We are working on expanding the reach and depth of our community platform by providing value-added features to the community like complete enterprise applications for Customs brokering as well as freight forwarding rolled out through our CCS platforms.
We are also working on creating the world’s largest digital logistics cloud for the international supply chain by creating a global network of airports and ports connected digitally through our Digital Corridors. We believe that the future is multimodal, so we are working on creating Sea-Air corridors to facilitate intermodal cargo movement. Our large communities will get integrated with our Logistics eMarketplaces, which are under development.
We continue to expand our operations across the globe. We are also working on implementing the deep tech use cases of IoT, Blockchain, AI, and ML in our community platforms.
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
