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Sovereign Speed speeds up climate protection efforts

Heiner Siegmund
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Sovereign Speed speeds up climate protection efforts

To achieve this goal, the Hamburg-based express logistics service provider is relying on the use of the biofuel Hydrotreated Vegetable Oil (HVO). This will be used to fuel the fleet of vehicles operated on domestic German and trans-European routes. Depending on the location and mission, emission reductions of between 50% and 90% compared to conventional fuel, can be achieved. The somewhat extraordinary name of the new product is ‘OWTZ Boost’. OWTZ stands for ‘Our Way to Zero’.

Thanks to the new ‘OWTZ Boost’ product, Sovereign Speed’s fleet will emit 50% less CO2 compared to today – photo: CFG/hs

Togetherness is key

However, filling up the vehicles with HVO is slightly more expensive than diesel fuel. Depending on the country and routes served, the costs go up between 0.20 to 0.40 eurocents per liter, compared to traditional diesel fuel, says Hendrik Bender, CCO Sovereign Speed. Hence, switching from diesel to HVO results in an increase of operational expenditures that the logistics company with its fleet of 300+ vehicles, cannot bear alone. Therefore, the scaling of this well-intended project can only happen with customer support.

LTLS becomes launching customer

A Sustainability Matters Day recently organized by Sovereign Speed in Frankfurt showed that this is manageable. Around 60 customers showed up, including executives of major freight forwarders, airlines, handling agents, truck manufacturers and leading representatives of transport associations. In the meantime, Lufthansa Technik Logistik Services (LTLS) has become the first major OWTZ user. “LTLS is pleased to be a pilot customer in the OWTZ-Boost program. It allows us to achieve important emission reductions directly within our transportation network and take the first steps in the use of renewable diesel – HVO100 – into practice,” states Mareike Krowicki, Commodity Manager Green Team Transport of LTLS. She goes on to say: “We expect HVO to play a central role for us in the coming years in achieving our goal of becoming climate-neutral in our road transportation by 2030.”

Thorough preparation

It took a lot of preparation, consultation with suppliers such as Shell and, of course, business partners before the new product could be launched. Frank Liebelt, CEO Sovereign Speed, recalls: “We started proactively offsetting the unavoidable greenhouse gas emissions originating from our network three years ago. Now we have the opportunity to avoid more and more emissions directly. Hence, our OWTZ-Boost offer to the market is exactly in line with our strategy towards emission-free transportation. However, we will continue to work on our offsetting strategy in the future. Because even when using HVO, there are still climate harming gases that are emitted.”

50% is only an interim target

CCO Henrik Bender emphasizes that customers using the OWTZ-Boost product are guaranteed a CO2 reduction rate of 50% at shipment level for the entire transport from A to Z, compared to traditional diesel burn. To achieve this, Sovereign refuels the required quantities needed within the company’s hub-to-hub network continuously. “However, we want more, because 50% is only an interim target,” the executive says, expecting scaling effects. He reminds that in principle, HVO has a reduction potential of 80% to 90%: “Particularly express logistics service providers have the option of individually increasing the HVO share via a book & claim model and achieving a higher reduction.” The management intends to present the first interim results of HVO and OWTZ-Boost in about three months.

Decarbonization: From EAGLE to EGAN

Heiner Siegmund
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Decarbonization: From EAGLE to EGAN

The current year began on a sad note when the German government froze the funding of SAF projects previously supported by the state. This also affected the Berlin-Brandenburg initiated EAGLE project, including the SAF-startup, Spark e-Fuels. But “standstill” is not part of Berlin-Brandenburg Aerospace Alliance’s (BBAA) genes as is shown now. While the EAGLE mission took off in 2022, at the Berlin-held air show ILA, the upcoming ILA 2024 (05-09JUN24) will unveil its successor, EGAN: European Green Airport Network.

New hope for Green Airports “Silicon Valley”

Four European regions which support the decarbonization targets of previously selected airports in France, Germany, the Netherlands, and Norway, have signed an LOI. The common goal is to align and agree on optimized carbon-free fuel pathways to achieve the zero CO2 emissions target. It is no coincidence that the Berlin-Brandenburg region first reached out to their French partners in the Occitanic region with their local cluster Aerospace Valley, centered in Toulouse (Francazal Airport). Both regions had presented their joint strategy to a broader aviation public already at ILA 2022.

H2 maiden flight

This presentation triggered further interest from the now partnering regions Northern Norway (Bodø Airport) and the Dutch province Flevoland (Lelystad Airport). Besides their joint objectives, these regions are complementary in their capabilities, offering and achieving mutual collaborative benefits and learning from each other. Norway holds the uncontestable championship in renewable energy supply, the Netherlands has the most advanced hydrogen valley and energy storage systems, and Toulouse is the natural cradle of several H2 (hydrogen) and hybrid-electric aircraft manufacturers. One of them recently performed the first maiden flight of a French-made H2 aircraft: France’s First Manned Hydrogen-Electric Flight (also see photo).

Beyond Aero’s “Blériot”, France’s 1st H2 aircraft following its maiden flight. Pictured are Mrs. Irwin Kerboriou, Lead H2 Airport Ops Manager, Beyond Aero (centered). Flanked by Einar Sørensen, Norway (left), Hugo Duchemin, France (right), strategic advisors to the European Green Airport Network.

Sector coupling with H2 for multiple offtake

Back to Berlin-Brandenburg: With the H2 hub concept at their two airports Schönhagen and Strausberg, the BBAA developers have created a model that is inspiring more regions and partners to participate in this project. Backed by an EU-financed study, a coherent system of locally generated renewable energy was established. This includes the production and supply of green hydrogen for air- and landside use, sector coupling for regional mobility, and SAF production for regional and business aviation. The entire package is aimed at developing low to zero greenhouse gas emission aviation. The European network partners intend to implement upcoming H2 safety and refueling standards for aviation as soon as their jointly achieved results are ratified. This said, it is expected that Berlin’s H2 aircraft manufacturer, APUS Zero Emissions, will soon be joined by its Toulouse-based peers, Beyond Aero and Blue Spirit Aero, with the latter planning a zero emissions aircraft version for transporting express shipments.

Airfreight as innovation driver

As proven by existing SAF projects, exemplified for instance by Schenker-supported Lufthansa Cargo freighter flights between Frankfurt and Shanghai, H2 Aviation can benefit from a first mover effect once the concept allows for transporting cargo consignments. A role model could be played by the APUS i-5 “Hydrogen” aircraft, because the manufacturer plans to construct a cargo variant. Another hot candidate is drone airline, Dronamics, that intends to use a fuel cell propulsion system in its Black Swan cargo drone aircraft. When it comes to air freight, there is no “chicken vs egg” problem in the use of hydrogen technology. Airport areas will naturally grow into hydrogen valleys capable of locally producing SAF out of green hydrogen based on a Fischer-Tropsch process. Meanwhile, service stations in those areas will be used by cargo trucks that feed into freighter airports. The cargo community is well aware of the fact that air freight spends much more time on the road than in the air, due to the fact that the catchment area of each major airline covers an entire continent by road, with only a few hubs allowing for large-scale freighter uplift. Hence, it can be expected that air freight will embark on the green avenue beginning on roads, followed by air uplifts. D

Green trucking

This also because the recent vote by the European Parliament is increasing the pressure on truck operators. CO2 emissions from large trucks will have to be reduced by 45% for the period 2030-2034, 65% for 2035-2039, and 90% as of 2040. Conveniently, some truck manufacturers have found a way to install the H2 tanks underneath the cargo area, this way freeing them from their place behind the driver’s cab. Hence, the needed standard length for accommodating four cargo ULDs can be maintained. This “green road” concept is part of the EGAN advance.

Last week, Koalas, this week Lions

Brigitte Gledhill
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Last week, Koalas, this week Lions
Lions arriving in Johannesburg Image: Rock-It Cargo

On 25APR24 and on behalf of FOUR PAWS both in the Netherlands and South Africa, Air France KLM Martinair Cargo carried a very special cargo this time consisting of two lions, Vasylyna and Nikola. Last week, it had transported three Koalas. Both majestic cats had been illegally held as pets in their home countries. The lioness Vasylyna had originally broken free of her house in Ukraine, roaming the streets of a village near Kharkiv as war carried on around her and until she was caught. She was kept in a Ukrainian temporary wildlife shelter before being taken to the FELIDA big cat sanctuary in the Netherlands on 07JUN24. Nikola, on the other hand, was roaming wild in Budva, Adriatic coast, before he also was caught and taken to the safe heaven of FELIDA. FELIDA is a specialized sanctuary for big cats run by the animal welfare organization, FOUR PAWS in Friesland, the Netherlands. The desired destination for those two cats: LIONSROCK’s large, 1250-hectare sanctuary in South Africa

Vasylyna and Nikola’s journey began on 25APR24, when they were carefully loaded onto a Martinair Cargo 747 freighter aircraft. Leaving FELIDA* (* the specialized sanctuary for big cats run by animal welfare organization, FOUR PAWS, in Friesland, the Netherlands, to LIONSROCK, an expansive 1250-hectare sanctuary managed by the same organization in South Africa.

Mirjam Scherer, Global Head of Specials Logistics at Air France KLM Martinair Cargo, commented: “At our animal hotel at Schiphol, we prioritize dedication to providing the best care for our animal passengers. We ensure the highest level of attention and care for every animal under our care, from the moment of arrival to departure. Our team of seasoned professionals is ready to deliver the best service and care, including special diets, administering medication, and, of course, plenty of love and attention. We strive to ensure that every animal with us is happy, healthy, and well-cared for.” Petra Sleven, Director of FOUR PAWS, said: “The relocation of Vasylyna and Nikola to LIONSROCK means they finally have the opportunity to live in a large sanctuary, surrounded by other lions. While it’s saddening that they never had the chance to be released into the wild due to illegal trade, we are glad to offer them a more natural life here.”

Descartes acquires Aerospace Software Developments (ASD)

Brigitte Gledhill
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0
Descartes acquires Aerospace Software Developments (ASD)
Aerospace Software Developments is based in Dublin, Ireland – photo: company courtesy

Descartes Systems Group has just closed its 31st purchasing deal in 9 years – this time it has invested 57 million euros (USD 61 million) in the acquisition of Aerospace Software Developments (ASD). Of those, 54 million euros were paid cash in hand upon closing, while the small rest is expected to be handed over to Descartes in the fourth quarter of this ear. ASD has its headquarters in Ireland and provides customs and regulatory compliance solutions aimed at facilitating customs processes for importers, exporters, and LSPs and helping them comply with Irish regulatory requirements, when looking to import or export their shipments. Descartes thus gains intelligent customs filing solutions all about Irish customs procedures. “Additionally, ASD’s RFID solutions complement Descartes’ CORE BLE real-time tracking platform for the air cargo industry – helping global airlines and ground handlers eliminate manual tasks and comply with various airline regulations more efficiently through the unique identification, tagging, and tracking of assets,” the release states.

Ken Wood, EVP Product Management at Descartes, said: “Descartes’ Global Logistics Network (“GLN”) was built to help shippers, carriers, and LSPs connect and collaborate to manage the complete lifecycle of shipments. This combination with ASD is highly complementary to our current product footprint. ASD adds deep Irish customs domain expertise and a modern multi-country customs technology platform. We also see great synergies for the airline community by combining ASD’s RFID-based solutions with Descartes’ CORE BLE real-time tracking platform.” Edward J. Ryan, CEO of Descartes, stated: “As customers increasingly look to cover more business processes with one provider, we continue to add solutions to the GLN for them to do so. ASD shares a common vision to serve the wider global logistics community of shippers, carriers and LSPs. We’re excited to welcome the ASD employees, customers, and partners into the Descartes family.”

dnata has a new Global Head of Airport Operations

Brigitte Gledhill
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dnata has a new Global Head of Airport Operations
Global Head of Airport Operations, Clive Sauvé-Hopkins. Image: dnata

dnata has named Clive Sauvé-Hopkins as its new Global Head of Airport Operations, or Divisional Senior Vice President (DSVP), Airport Operations, given that the press release states two differing titles. Nevertheless, he will be responsible for the supervision of dnata’s ground handling and cargo businesses at 97 airports across 16 countries. Working out of Dubai, UAE, and reporting to Steve Allen, CEO at dnata Group, he will be managing a team of more than 37,000 “customer-centric aviation professionals”, who ensure that over 330 airlines are handled properly, according to their contracted operations.

Strating out with a military and administrative background, Clive came to the air cargo industry in 2009, and has amassed extensive international experience in commercial strategy and business transformation, working for several large names such as Swissport, Servisair, Aviapartner, Qatar Airways, and, most recently, the Abu Dhabi Developmental Holding Company (ADQ) where he held the position of Chief Transformation Officer.

Steve Allen commented: “I’m pleased to have Clive on board our global management team. Clive has all the experience and skills to drive our growth strategy and ensure consistent quality and safe services, with a continued focus on people and sustainability across our global operations. I look forward to working together as we enhance our business and offering.”

Meanwhile, the handler has been busy. On 18APR24, it inaugurated a new office at Terminal 3 of Rome Fiumicino airport (FCO) – part of a multi-million euro investment, of which more than €20 million are going into purchasing advanced ground support equipment (GSE) at the airport. Alberto Morosi, CEO of Airport Handling, said: “The opening of our new office marks an important milestone, underscoring our commitment to commencing services in Rome as soon as possible. We will continue our long-term investments in team, infrastructure, and equipment as we establish operations at the airport. We look forward to providing our world-class services to our existing and new customers at another major Italian aviation hub.” And it announced on 26APR24, that it had renewed its contract with Air Arabia in Switzerland, to handle the airline’s weekly flight from Casablanca to Geneva.

WestJet Cargo celebrates a year of its own freighters

Heiner Siegmund
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0

Time literally does fly if you look at the fact that WestJet has already been operating its new freighters since a year. The company posted a Happy Birthday video last week, to accompany its “monumental milestone [… on 25APR24] today, WestJet Cargo marks the first anniversary of our dedicated freighters launch!” and thanking its customers for their support as the airline continues to “redefine air cargo transportation and shape the future of global trade.” There’s nothing like full freighter capacity to help get the economy moving. Or as WestJet Cargo put it in their release: “Our dedicated freighters have not only strengthened existing trade routes but have also opened doors to new opportunities, facilitating the seamless movement of goods across borders. From perishables to e-commerce and beyond, our commitment to versatility and reliability in air cargo transportation remains unwavering.”

WestJet Cargo operates a fleet of four P2F converted B737-8F

And 2024 also offers a second anniversary for the airline. In a separate LinkedIn post that week, it announced: “We’re flying high with excitement as we celebrate 10 years of transatlantic adventures! WestJet has been a part of your European journey since our inaugural transatlantic flight between St. John’s and Dublin in 2014.” That European journey continues to grow. WestJet Cargo announced that it would be expanding its cargo flights between Calgary and Paris Charles de Gaulle (CDG), with 5-7 weekly flights, each offering a payload capacity of 18 tons. In doing so, the airline – with the help of ECS Group’s technological tools providing transparency on market opportunities and cargo operations – aims to optimize its efficiency and use of strategic hubs.

Kirsten de Bruijn, Executive Vice President of Cargo at WestJet, disclosed: “Our expansion into European markets through the Paris hub is a key part of our growth strategy. ECS Group’s technological support and network have been indispensable in enhancing our service capabilities, allowing us to pursue new opportunities in additional European countries.” Jean Ceccaldi, Managing Director of Aero Cargo France – subsidiary of ECS Group, commented: “We’re proud to support WestJet Cargo with our Quantum e-quotation system and Apollo business intelligence platform. These tools enable efficient management of cargo capacities and market analysis, supporting WestJet Cargo’s goals of technological excellence and enhanced service delivery.”

Cargo iQ announces new board members

Brigitte Gledhill
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0
Cargo iQ announces new board members
Olaf Hagelstein and Fanny Chan join Cargo iQ Board. Image: Rock-It Cargo

Last week saw the re-election of Hendrik Leyssens, VP Process, Planning and Project Delivery, Emirates; Jussi Lemola, Vice President, Global Operations – Cargo, Swissport; Klaas Kurz, Director Aviation Security & Governance, Schenker AG, and Rutger-Jan Pegels (RJ), Director Performance Management, Air France KLM Martinair Cargo. The latter also holds the function of Vice Chair of Cargo iQ. Two new appointments were announced and formally welcomed at Cargo iQ’s Working Group meeting in Geneva, Switzerland. They are Fanny Chan, Head of Cargo Global Operations at Cathay Pacific Airways; and Olaf Hagelstein, SVP, Global Head of Operations, Processes & Systems – Air Freight, DHL Global Forwarding. Lothar Moehle, outgoing Cargo iQ Executive Director, predicted: “These individuals bring with them a wealth of knowledge and valuable expertise that will help steer and advise our organisation during a year of exciting changes. Their appointments come as we prepare to launch two major initiatives that will result in enhanced cooperation and collaboration across the air cargo chain, and with our new Executive Director Marie Seco-Köppen driving implementation.” The Cargo iQ Board now consists of 11 voting members from Air France KLM Martinair, Cargomind (Austria), Cathay Pacific, DB Schenker, DHL Global Forwarding, Emirates SkyCargo, Hellmann Worldwide Logistics, Kuehne+Nagel, Lufthansa Cargo, Qatar Airways Cargo and Swissport International, and is supported by observers Riege Software, FIATA, and ASA, and advisor, Im3Pact AG. Cargo iQ community currently counts more than 60 members, and is in the process of launching two new initiatives this year to further increase its membership engagement. One of these is a new scorecard system “which will be open to both members and non-members alike, enabling them to measure their own, and their partners’ performance against Key Performance Indicators (KPIs) derived from Master Operating Plan (MOP) milestones and data exchange between parties,” the press release says. Cargo iQ is also preparing for the handover from Lothar Moehle to Marie Seco-Köppen as new Executive Director in MAY24.

Bavaria (Straubing) and Budapest see GW expansion

Brigitte Gledhill
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0
Bavaria (Straubing) and Budapest see GW expansion
Expansion in Budapest, Hungary, with more to come in Györ in 2026. Image: Gebrüder Weiss

Less than a week after a large celebration in Bavaria’s Straubing, complete with VIP presences in the form of the region’s Minister President Markus Söder, Gebrüder Weiss also inaugurated its new logistics complex in Dunaharaszti, near Budapest. The extension cost in the region of 25 million euros and added 10,000 m² of office, handling, and high-bay warehousing to the existing logistics facility. Equipped with the latest automation (robots carry containers to picking workstations, for example), solar technology, and zero emission delivery using e-vehicles, the new facility offers additional storage capacity to its customers, and will become the Budapest center for Gebrüder Weiss’ Home Delivery services. Speaking at the opening on 25APR24, Wolfram Senger-Weiss, CEO of Gebrüder Weiss, detailed: “The expansion in Budapest offers room for further growth in the future. Increasing industrial production, especially in the automotive and electrical sectors, means that demand for transport and logistics services is expected to increase in the coming years. We opened our first Central and Eastern Europe branch in Hungary in 1989. Since then, the country has become an important hub for transporting goods between our core markets in the Black Sea region, the Balkans, the Adriatic and Western Europe. Today, our countrywide organization in Hungary is a pioneer in automation and sustainable transport.” To which Thomas Schauer, Regional Manager Central and Southeastern Europe at Gebrüder Weiss, added: “This saves time, space, and energy. We achieve an even higher level of efficiency in how trucks and containers are utilized. Cargometer cameras and 3D scanners measure the packaged items while they are still on the forklift truck. By ascertaining the size and weight of these items, we can make optimum use of the available space.”

Over in Straubing, where 150 industry and government representatives viewed the new 3,700 m² and 14 million euro forwarding location on the German Logstics Day (18APR24), Minister-President Dr. Markus Söder declared the company’s investment as: “excellent news at a time when the Federal Government is massively jeopardizing truck logistics in Germany. CO2 prices are up, tolls have doubled, e-mobility funding has been cut. This is damaging to such a systemically relevant industry, and once again fueling inflation. It can’t be overstated: we need forward-looking entrepreneurs and motivated employees more than ever.” And, according to Senger-Weiss, the country needs better e-infrastructure: “e-trucks cost three times as much as diesel-powered vehicles, which is why we need a clear roadmap in Germany on the future of e-truck subsidies.” Gebrüder Weiss will continue to expand, both in Germany and Hungary, with the next location being Györ in 2026.

Spotlight on… Jaran Vromen, Global Key Account Manager, Challenge Air Cargo

Brigitte Gledhill
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0
Spotlight on… Jaran Vromen, Global Key Account Manager, Challenge Air Cargo

CargoForwarder Global’s ‘Spotlight On…’ series aims to highlight the many different functions involved in ensuring that cargo flies from A to B safely, efficiently, and on time. And we want to get to know the people behind the job title: what brings them to our industry, and what advice they have for those considering a career in air cargo. This week, Jaran Vromen (JV), Global Key Account Manager at Challenge Air Cargo takes us through his job, how he discovered the industry and where he sees challenges and opportunities.

Jaran Vromen – image: private

CFG: What is your current function? And what are your responsibilities?

JV: I am the Global Key Account Manager at Challenge Group, based in the Netherlands. My role involves developing the framework to support our global key account team based around the world, which I also lead. This team is designed to deepen our understanding of our customers’ strategies and align our products and services accordingly. Additionally, we provide customers with a dedicated point of contact for daily operations, ensuring they receive extra attention and support.

CFG: What does a normal day look like for you? Or is there such a thing?

JV: Currently, it’s a mix of dealing with customer RFQ’s, Project management (creating new and improved services) such as creating our E-commerce end-to-end service and traveling to industry events like Air Cargo India, IATA WCS, etc.

CFG: How long have you been in the air cargo industry, and what brought you to it?

JV: I spent 6 years with FedEx Europe responsible for the Aerospace Key Accounts in Europe and since a year joined Challenge Group. I started my sales journey in the returnable packaging for the automotive industry but got inspired by a talk from a couple TNT executives at a conference that really made me excited about the industry and eventually fueled the move to the Express world.

CFG: What do you enjoy most about your job?

JV: That you do not know what the day brings and being able to learn new things every day. Next to that it’s great to work at a company like Challenge Group where there is a real entrepreneurial mindset to improve and grow on a daily basis and use the experience of the team members to enhance the business.

CFG: Where do you see the greatest challenges in our industry?

JV: We work in an industry with a need for young and innovative individuals to add value and work towards a more innovative, efficient industry. That is why I also joined Cargo Collective!

CFG: What advice would you give to people looking to get into the air cargo industry? Any particular training they should aim for?

JV: In my line of work, it’s very beneficial if you have specific knowledge in a vertical (pharma, automotive, etc.) and specialize/build your network in these industries by visiting industry events, join groups like cargo collective, etc.

CFG: If the air cargo industry were a film/book, what would its title be?

JV: Around the world in 80 days.

CFG: Many thanks, Jaran, for your insights.

If you would like to share your personal air cargo story with our CargoForwarder Global readers, feel free to send your answers to the above questions to cargoforwarderglobal@kopfpilot.at We look forward to shining a spotlight on your job area, views, and experiences.

Nordic Air Cargo Symposium 2024 – Summary

Heiner Siegmund
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0
Nordic Air Cargo Symposium 2024 – Summary

The 13th Nordic Air Cargo Symposium took place in Stockholm’s magnificent Grand Hotel from 22-23APR24. It was a trade show of a special kind for many reasons: the many sparkling topics presented and discussed there; the first joint public appearance of the new cargo chiefs of SAS and Finnair; Atlas Air’s fact-filled Market Outlook tabled by Martin Drew; the overview over the salmon business including the growing challenges it is facing; and the fascinating insights into the rapidly evolving Life Science and Healthcare business and its effects on the transport and cargo industry, highlighted by Frank Van Gelder of Pharma.Aero.

However, before going into more detail on key topics, a review of the Symposium would be incomplete without mentioning this: The event was an ode to the organizer, Lars-Gunnar Comen. Not only was it the 13th Air Cargo Symposium that he had set on track but also the 50th Trade Show worldwide orchestrated by his company Euroavia. An incredible lifetime achievement.

TIACA Chairman Steven Polmans’ advice to Euroavia boss Lars-Gunnar Comen was that he should only think about retirement after he ran his 100th trade show  –  courtesy: Euroavia

ARN gets a Cargo City

The keynote speech was delivered by Jonas Abrahamsson, CEO of the public Swedish airport operator, Swedavia. He explained that air traffic is extremely important for his country due to Sweden’s geographical location on the fringes of northern Europe. Currently, passenger numbers in Sweden are still -20% below pre-pandemic times and will reach 22 million in 2023, but they are steadily increasing. Freight traffic is developing rapidly, mainly due to e-commerce. Abrahamsson announced that a new Cargo City is to be built one kilometer south of Stockholm’s Arlanda Airport. Gothenburg remains the leading logistics center, with plans for local Landvetter Airport to be expanded into an intercontinental gateway.

Slow recovery

As far as the competitiveness of Nordic airlines is concerned, they are at a clear disadvantage on routes to/from the Far East. Due to the closure of Russian airspace as a result of the Ukraine attack by Putin’s armada, SAS and Finnair have to circumvent Russia on southbound routes. This increases costs and leads to sales losses of 0.15 USD/kg in air freight in comparison to their Central or Southern European peers, stated analyst Ronald Veltmans from consulting agency Rotate. 

Seafood continues growing fast

Panelist Tom Mikkelsen of Mikkelsen Consulting, pointed at the outstanding importance of the salmon industry, especially for Norway and the Nordic airlines, including Finnair. An annual growth rate of 30% is the rule. In 2023, 1.2 million tons were produced and marketed by Norwegian salmon farms. While shipments destined for Europe are transported by truck, the other target markets, primarily the USA and the Far East, are served by air freight. In addition to the two Nordic airlines mentioned above, the main carriers are Emirates, Qatar, Etihad, Korean Air, Ethiopian, the Challenge Group, but also the three integrators: DHL, UPS, and FedEx (CFG will take a closer look at the topic of seafood in our upcoming issue on 05MAY24).

More pandemics are to come

In a remarkable presentation, Frank Van Gelder, MD Medicon and Secretary General of Pharma.Aero, illustrated the transformation of the supply chain for products in the life science and healthcare industry. The starting point of his journey was the current supply situation, leading to sophisticated and futuristic personalized medicines that are precisely tailored to each patient, thanks to the creation of a digital twin. He pointed out new production processes, the monitoring of an individual’s health status from remote and the increasing use of AI. At the same time, new pandemic outbreaks are just around the corner, as the progressive growth of the world’s population and the increasing cohabitation of humans with animals have already created the starting conditions for global epidemics. A rather gloomy outlook…

Concluding remarks

Key takeaways from the events were summarized at the end of the Nordic Symposium by TIACA Chairman, Steven Polmans, who moderated the trade show in a concentrated, yet entertaining way.

  • Sustainability is on everybody’s agenda, be they airlines, forwarders, airports, or handling agents. That, including the ongoing mental change, was the good news delivered at the Stockholm event, Steven emphasized. However, the amount of SAF production is still way too low. Scaling effects are needed fast to lower the SAF price and balance demand and supply. This all the more since other modes of transportation act as competitors for the use of SAF, he reminded.
  • The salmon business is of enormous importance for the Nordic countries, including cargo transportation, but the rate of fish that die in the fish farms before commercialization is frightening high, experts speak of up to 20%.
  • In the Nordics, air freight is on the way from recovery to stability, with e-commerce being the most important growth driver.
  • AI continues to gain in importance, including in the cargo industry. However, the digitalization of processes is still too slow. It remains an urgent task to finally become faster in order to accelerate business processes and minimize sources of error.

Host, Lars-Gunnar Comen from organizer Euroavia, will soon be announcing where the 14th Nordic Air Cargo Symposium will take place next year. A hot candidate seems to be Denmark.

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