The panel bearing the same title at the ACHL/Aviation Connect event in OCT24, covered a record number of topics in the brief half-hour accorded to it, illustrating the air cargo handling industry’s increasing transformation, fueled by resilience, innovation, and collaboration. Sebastiaan Scholte, CEO of Kales Airline Services, moderated the panel and invited four industry leaders to share their achievements, strategies for differentiation, and insights into the sector’s evolving challenges.
His guests were: Dirk Goovaerts, CEO Continental Europe, Middle East, Africa & India, Swissport; Janet Wallace, Managing Director Cargo Operations & Transformation Air Canada, Wilson Kwong, CEO, HACTL, and David Kerr, Consultant, ValleyRoad Capital SA.
Adapting to increasing volumes and complexity
Dirk Goovaerts of Swissport highlighted the company’s response to unprecedented volume growth, emphasizing the importance of ensuring a seamless value chain from shipper to consumer. Swissport’s collaboration with stakeholders has been critical in maintaining high standards of speed and service quality. Similarly, David Kerr from ValleyRoad Capital SA, described innovative efforts in Europe to integrate road feeder services (RFS) with air freight in a non-traditional fashion in order to support the growing e-commerce sector. Janet Wallace of Air Canada Cargo pointed to the industry’s resilience and adaptability in addressing challenges such as customs and security measures, emphasizing operational excellence as a cornerstone of their strategy. Wilson Kwong of HACTL shared a comprehensive view of its advancements, including investments in safety, security, service quality, and sustainability. HACTL has implemented cutting-edge measures, such as new thermal equipment for handling sensitive cargo, recycling uniforms into reusable items, and trialing autonomous tractors to enhance efficiency.
Differentiation in a commoditized market
In a highly commoditized industry, differentiation often hinges on service quality and technological innovation. Kwong emphasized that HACTL’s commitment to service quality involves substantial investments in infrastructure, training, and advanced tools such as AI, which is being tested to streamline compliance with complex operational standards. Wallace noted that speed and transparency are also critical for Air Canada Cargo, which has prioritized process improvements to deliver on these factors. Kerr addressed the growing demand for end-to-end solutions, particularly among new entrants, and pointed to innovations in deconsolidation, robotics, and piece-level handling as vital to meeting e-commerce needs. Goovaerts, on the other hand, stressed the importance of creating collaborative ecosystems, such as cargo communities, to ensure efficiency and quality. He cited an example involving a closed-loop system for exporting flowers from farms to airports, demonstrating the value of stakeholder collaboration.
e-commerce: opportunities and challenges
e-commerce, which now accounts for nearly 20% of global airfreight volumes, presents both opportunities and challenges. Goovaerts and Wallace discussed the industry’s proactive approach to managing growth, with investments in equipment and manpower to handle the increasing demand. Kerr noted that gaps in integration and technology remain a challenge, underscoring the need for innovative partnerships to streamline operations. Kwong emphasized the importance of building capacity to manage e-commerce volume swings, from ensuring adequate ground support equipment (GSE) to maintaining a robust workforce. Across the board, leaders recognized that e-commerce is a trend that is unlikely to reverse, making it essential to adapt and innovate continuously.
Addressing labor shortages
Labor shortages remain a pressing concern for the industry, particularly in handling operations, where costs are high and retention is challenging. To attract and retain talent, Goovaerts highlighted the importance of equipping younger workers with modern tools that align with their preferences, moving away from outdated methods. Wallace emphasized the need for clear career development plans and effective change management to address organizational gaps. Kwong noted that younger generations prioritize purpose and rapid growth opportunities, prompting HACTL to provide coaching, overseas assignments, and cultural initiatives that underline the industry’s critical role in maintaining global supply chains. Kerr added that pairing digital solutions with the expertise of seasoned professionals is vital to mitigating the loss of experienced talent and fostering growth.
Sustainability: a growing focus
Sustainability has emerged as a central focus for the industry, with many organizations implementing innovative practices to reduce their environmental impact. HACTL’s efforts to recycle uniforms into reusable items, such as cups, reflect the growing commitment to zero-waste operations. Trials of autonomous tractors are addressing both labor shortages and energy efficiency, demonstrating the potential for technological solutions to support sustainability goals. As these initiatives gain traction, the industry is taking meaningful steps toward a more environmentally responsible future.
A forward-looking industry
Looking ahead, the air cargo handling industry is poised for continued evolution. Collaboration, technology adoption, and sustainability will play pivotal roles in navigating the complexities of the sector. While challenges such as labor shortages and e-commerce demands are significant, they also present opportunities for differentiation and innovation. By fostering resilience, prioritizing service quality, and investing in people and technology, the industry is well-positioned to adapt and thrive.
