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Freighters: an unattainable dream for SAS and Finnair?

Heiner Siegmund
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Freighters: an unattainable dream for SAS and Finnair?

The two Nordic airlines, SAS and Finnair, do not operate freighters. Finnair used to have some, but they are a thing of the past. All cargo shipments are therefore transported in the belly compartments of the respective passenger fleets. Yet, freighters would be desirable, according to the air freight managers of both airlines. This ‘dream’ might be realized through ‘togetherness’, in other words:  close cooperation with partners.

Gabriela Hiitola became Senior VP, Finnair Cargo in January 2923, succeeding Fredrik Wildtgrube in this position – photo: CFG/hs

Gabriela Hiitola, the new Head of Cargo at Finnair Cargo, mentioned that operating freighters is desirable but currently highly unrealistic. She stated this in a panel at the Nordic Air Cargo Symposium held on 23APR24, in Stockholm. Getting into the freighter business would only be feasible if done in close cooperation with peers, she said. Her keyword for this was: togetherness.

Her SAS colleague, Markus Ek, sounded the same note. He has been at the helm of the cargo division of the traditional Nordic airline since August 2023. For his carrier in particular, the chances of potential freighter operations are slightly better compared to its geographical neighbor, Finnair. This is because the airline’s imminent switch from the Star Alliance to the Sky Team club, which will take place at the end of August, could make freighter capacity available for SAS, at least on intercontinental routes with strong demand or in the form of triangular flights. The options are there since Air France and KLM operate own freighters. Whether they will be considered, remains to be seen. Finnair does not have comparable opportunities. Its closest European one world partner, British Airways, does not have any cargo aircraft in its fleet after it phased out three B747-8Fs a decade ago.

Geographical disadvantages

At the moment, Finnair is plagued by completely different problems. Due to the sanctions against Russia following its war on Ukraine, Russian airspace is closed to Western airlines. This means that Finnair’s aircraft need 3 hours longer on routes to and from the Far East, compared to the direct link via Siberia. The routing increases costs, leads to higher kerosene consumption, and makes the entire product more expensive.

Sustainability is more than just a fuel issue, it includes social aspects like diversity and Inclusion, stated Markus Ek from SAS Cargo at the Nordic Air Cargo Symposium – photo: credit SAS

Leisure demand dictates networks

Markus Ek from SAS drew attention to another challenge affecting the cargo divisions of both Nordic airlines. Since the end of the pandemic, the route network has been heavily concentrated on leisure destinations due to tourist demand. However, these are generally locations that are not very attractive for freight transportation. The same applies to Finnair, where only 10% of the cargo transported originates from the domestic market, but 90% is transit. By concentrating its network on tourist demand, the airline is also becoming less attractive for the air freight market.

Waiting for IATA’s ONE Record data sharing standard

Both cargo executives agreed that there is no alternative to digital transformation. The documentation of all processes in air freight is still far too complex and is often based on different systems, which doesn’t make communication easier. The two managers agreed that the implementation of the ONE Record platform is urgently needed to streamline data flow and massively reduce complexity. “There is no alternative to digital transformation, otherwise we would die, since customers might find other ways how to work,” warned Mrs. Hiitola.

High ecological awareness

Sustainability is another issue ranked high on Finnair and SAS Cargo’s priority list. “Reducing greenhouse gases, increasing the proportion of sustainable aviation fuel and renewing the fleet, are right at the top of our sustainability agenda. In a broader sense, this also includes diversity and inclusion, which we see as part of social sustainability,” argued Markus Ek.

At Finnair, “SAF currently accounts for 0.2% of our flights. In two years, it should be 2%. And in ten years, it will be 34.5%,” stated Mrs. Hiitola. She added to this that not only governments should drive this issue forward, but also private investors should get more involved. And the trend is proving her right. More and more shippers are asking their service partners to provide proof of a green transport chain when tendering for contracts. This is positive and welcome pressure from the industry, Hiitola and Ek agreed.

Exclusive: CargoAi launches CargoQUALITY

Brigitte Gledhill
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Exclusive: CargoAi launches CargoQUALITY

Real-time air cargo capacity and rate information used to be distant dream, but over the past five years or so, that dream has become reality, and an increasing number of airlines have begun offering their capacity on the few, established online marketplaces out there. CargoAi is one of these platforms and has seen a meteoric rise in acceptance since its inception in 2019. As its claim “Another way to think cargo” states, its success is down to ongoing innovation and new features. Following on from its additional Sustainability focus, CargoAi now also offers a Quality perspective. For the first time in the digital marketplace world, users of CargoAi’s CargoMART are given an overview of each airline’s quality performance on a given route. CargoForwarder Global (CFG) asked Matt Petot (MP), Founder and CEO of CargoAi, to elaborate on his company’s new CargoQUALITY feature.

Matt Petot talks to CargoForwarder Global about CargoAi’s new quality feature. Image: CFG collage of CargoAi and Canva stock image

CFG: CargoAi is adding a comparative Quality indicator as a further decision-making support for forwarders looking to book general cargo on routes offered on the CargoAi platform. When is this going live, and will it be available for all airlines on all routes?

MP: The CargoQUALITY feature is now live as of April and available on all 100+ airlines and countless routes available on CargoMART.
It is also available in our analytics solutions for freight forwarders and airlines.

CFG: What is CargoAi’s own definition of Quality in air cargo? And does it share this with its CargoTech peers?

MP: We calculate a standardized Quality score per airline per route as the percentage of shipments that were ready to be delivered by the airline at 6 hours after flight arrival, according to a baseline roadmap derived from the booking information. The planned NFD (Notify for Delivery) is compared against the actual NFD milestone (or AWD, where necessary) to calculate the Quality score. The result flows into a historical CargoQUALITY score for the airline and route (origin and destination), as well as the historical CargoQUALITY score for all airlines on the route in question.
The Quality scores of the past three months are considered, thus always offering an up-to-date view of the airline’s true quality performance.

CFG: You are the first online air cargo booking platform to offer Quality as a comparative indicator to forwarders. What led to CargoAi establishing this indicator? And why NFD?

MP: As part of our vision, we want to create the best air cargo booking experience.
It is clear to us that adding an operational comparative indicator was necessary to drive better procurement/booking decisions as an additional consideration factor when choosing between multiple airlines. Freight forwarders no longer need to rely on intuition regarding an airline’s efficiency and reliability, as they can now base their purchasing decisions on accurate, recent, and up-to-date quality information.
To drive standardization and alignment in our industry, CargoQUALITY applies the same long-established standard NFD indicator – 6 hours after flight arrival to all of the airlines included on the CargoMART platform – providing an equal measure for every airline and every forwarder.

CFG: NFD and other quality milestones were developed by Cargo iQ, previously Cargo2000. What are your views on Cargo iQ’s achievements and your own experiences working with these milestones, and how do these play into your decision to launch?

MP: As a fun fact, I, Matt Petot, worked on Cargo2000 many years back – and we respect what they do for the industry.
Cargo iQ standard is great for the industry and the measures deserve to be extended to many more airlines, forwarders, and to be public. The only way to really improve quality is to have this data used in the operational process, and we want to expand on what they are driving, ensuring that every airline on CargoMART can get benchmarked with the same 6-hour standard.
The CargoAi and Cargo iQ teams are actively taking on the subjects for the last 2 years to find solutions on how to work closely together. In no way are we competing as we both want to work in the same direction.

CFG: Certain IT system providers have a monopoly on messaging systems, and there are still many air cargo players using outdated EDI messaging systems – what challenges do these pose on quality measurement?

MP: The monopoly is not in place anymore as EDI messaging is not updated anymore and created too many challenges. The data in EDI is not the same anymore as what the airline website shows! Most freight forwarders are now using alternatives to get the accurate tracking of their shipment, such as visibility companies like P44 or our own CargoCONNECT tracking solution which also includes CO2.
It does not pose any particular challenge for us for the 100+ airlines integrated with us, as we get access to the data from the millions of air waybills (AWBs) booked and tracked every year via our different CargoAi solutions.

CFG: Did you pilot the NFD-indicator with selected users (airlines and/or forwarders) before going live? What was their feedback?

MP: As part of our processes, we always test any new product with our beta users before going live.
The initial feedback from our testing freight forwarders using CargoQUALITY has been positive. Users have praised the product for its ease of use, comprehensive dataset, and ability to filter according to their need. Many across Procurement and Operations departments have noted the spark of new conversations around certain booking decisions – which is exactly what we wanted to drive for our industry.

CFG: The NFD based on the same time measurement across all airlines on a certain route is an objective indicator. What about introducing a subjective quality indicator where a forwarder can rate the outcome of a booked shipment on a particular route with a 1-5 star system (like Amazon) or 1-10 number scale (such as in Booking.com)? Would that make sense and be something CargoAi would consider?

MP: We already have this feature in place as part of CargoMART.
The main difference is that the shipment rating system includes multiple other independent aspects (e.g. platform experience, operational experience, payment experience), other than what CargoQUALITY is purposely built for.

CFG: What is the next step, now, for CargoAi? Can users look forward to further quality features this year? Perhaps in collaboration with other CargoTech members and/or Cargo iQ?

MP: As a matter of fact, we released our CargoMART Pro for forwarders and CargoMART Airline pro for airlines this month – helping both sides to streamline and optimize their processes when it comes to air cargo booking.
As part of our DNA, we’re constantly looking for new products and partnerships based on customers’ pain points – and we can share that our teams are already working on our new products for 2024.

Thank you, Matt, for those insights. Is there any other message you’d like to share?

MP: We recommend staying informed about our platform updates and new upcoming features at cargoai.co as our team is already working on exciting new features!

Five-star and the biggest and best of its kind

Brigitte Gledhill
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Five-star and the biggest and best of its kind

The scent of rose water in the air, the familiar deep burgundy color associated with Qatar Airways, and the sound of gentle lounge music playing through discreet speakers – the image that comes to your mind may be that of a premium airline lounge. And you would not be wrong. You may, however, be surprised to learn that this particular facility’s comfort and relaxation aspects have been designed with very specific passengers in mind: Welcome to Qatar Airways Cargo’s new Animal Center. The largest animal hub in the world!

Just ten years after its previous and already impressive, 4,200 m² Animal Center went into operation at Doha’s then pristine, new Hamad International Airport, Qatar Airways Cargo has now officially opened a massive, state-of-the-art successor. On 24APR24, local and international cargo press, along with representatives of some of the cargo airline’s largest clients, were invited for an exclusive viewing and question and answer session with Chief Officer Cargo, Mark Drusch, and the project and product managers involved.

The landside entrance to the world’s largest Animal Center. Image: Qatar Airways Cargo

Going beyond the interests of business
The new complex is the result of four-and-a-half years of intricate design and planning to deliver a facility unparalleled in its flexibility, scope, and size. “We learned a lot from the old facility,” Mark Drusch says, and you can almost see his eyes begin to water at the thought of the sum of money invested which he is discreet not to disclose. His pride, enthusiasm, and open praise to those involved in the now successfully completed project, however, is unbounded. “I had nothing to do with it,” he smiles, having been appointed to Chief Officer Cargo only at the start of this year, and pointing out and thanking his colleagues in the room, who have dedicated their work to ensuring the ultimate in wellbeing for the animals placed in the care of the Qatar Airways Cargo. Not just the animals, either, given that the press event is held in the “Groom Room” – a lounge area equipped with a sofa, private rooms, Netflix and self-service catering and beverage bar, for the benefit of the many grooms accompanying their horses on international journeys. Primarily the animals, however, as Mark Drusch emphasizes more than once in his welcoming speech: “the focus here is entirely on the emotional needs of the animals,” he stresses, and gives as one such example, the fact that cats and dogs travelling as pets (which make up between 10-15% of the carrier’s animal shipments), are played music to help them destress after and before their journey. He underlines that “we have gone beyond the interests of business, here. We have a five-star airline, a five-star airport and now a five-star Animal Center.”

Largest carrier, facility and animal transporter in the world
As the largest carrier in the world with the largest segment of the animal transport market, it is only fitting that it should also operate the largest animal hub. And hub is what it is. Unlike its many, smaller, peers across Europe (AMS, LGG, FRA, for example), the majority of the animals transit the airport as opposed to reaching final destination for onforwarding by truck. (And the scope for handling different species is greater.) The Animal Center sees a similar pattern to what happens to the general cargo, dangerous goods, and perishables over at the HIA cargo center: There, 90% of cargo is transit to other destinations, 1% is export and 9% are Doha imports of food and clothing, for example.

Dedicated as well as flexible holding areas
Back to the Animal Center: At 5,260 m², the complex boasts dedicated rooms for certain species such as reptiles, fish, birds (and a separate, dedicated falcon room which sees up to 220 falcons/day pass through in August peak season), horses, cats, and dogs, to name but a few, but also caters for more exotic creatures. Recently a hippo transited the new center and whilst an elephant has yet to travel on Qatar Airways Cargo, there is a 20ft ULD zone ready and waiting for when that day comes. Meanwhile, the 140 dog kennels and 40 cat kennels on offer contained a number of individual pets destined for Australia, the US, or Europe, and the 24 stables had already seen their guests checked out the night before. Some 10,000 horses are transported annually – a figure that continues to grow. We visit a huge Caster Room where up to 47 ULD positions can be handled easily and in tempered comfort on roller beds leading from airside to landside – particularly for cattle and sheep transports. And we observe and discuss the different docks enabling the flexible transport and care of those animals with quick turnarounds (90 minutes are possible, but animal welfare and health comes first, so they are preferably given a minimum transit time of 3 hours to ensure that they are destressed and comfortable.)

24-hour service
The center is open 24/7 and there are always 3-4 vets from the Canadian Veterinary Service on duty per shift to ensure the health and wellbeing of the animals passing through. While the vets walk to check the animals in their designated areas on regular facility tours, there is even a particular holding area with a window facing into the vet office, where certain species can be kept under constant observation.

The Animal Center is located a mere 5-minute (at most) drive away from freighter positions F11 and F12, which are primarily reserved for animal transports to absolutely minimize the ramp time. And there is more that goes on behind the scenes. We are shown a luxury bathroom area for dogs, complete with hair-drying grooming area. And the center has its own launderette to ensure that all animal boxes always have clean blankets.

More to come
The old Animal Center is being decommissioned, but the airport and Qatar Airways Cargo have big expansion plans that will come to fruition in the foreseeable future. With regard to animals, Qatar Airways Cargo is heavily involved in the different animal standards bodies, and was the first airline in the Middle East to become IATA CEIV Live-certified back in 2022. A certification that is coming up for renewal this year, and where the audit will now examine processes and facilities in the new Animal Center. It should pass with full marks. Aside from the long planning time, the move from the old to the new center was carried out in phases, and only completed after around two months of trial shipments and agreements with all the relevant authorities. That said, prior to the tour, Mark Drusch urges his visitors: “If you have any suggestions for improvement, tell us. We are always looking to improve,” he says, promising, “If we can do it, we’ll do it!”

Spotlight on… Ram Menon, Group Chief Commercial Officer, Wallenborn Transports

Brigitte Gledhill
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Spotlight on… Ram Menon, Group Chief Commercial Officer, Wallenborn Transports

The reason the air cargo industry is still around, is down to the multitude of incredible individuals keeping it running. And some of those are fortunate to have had industry knowledge passed down through their own family members. This week’s CargoForwarder Global’s ‘Spotlight On…’ talks to Ram Menon (RM), Group Chief Commercial Officer of Wallenborn Transports. He takes us through his responsibilities and industry experience, and has a lot of advice for those looking to forge a career in air cargo.

Second Generation Air Cargo – “it’s in my blood”. Image: Ram Menon

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

RM: Group Chief Commercial Officer, Wallenborn Transports. I am responsible for the Key Accounts, Sales, Product Management, Invoicing, and Marketing teams across the Wallenborn Group. I work closely with the leadership team to deliver operational excellence and added value for Key Accounts.

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

RM: No two days are the same. Given that Wallenborn is a multi-layered company with offices all over Europe & the Middle East, delivering different products, every day is a new day. Given the commercial aspects of my role, most of our customers are outside of Luxembourg, being based pan-EU, the Americas, China etc… Therefore, traveling is a big part of the daily routine, whether it is to visit customers or our different branches. It is very important to me to have the face-to-face aspect of working together. A lot can be done via Teams, but this business is and will always remain a people business, so we put a lot of focus on that.

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

RM: I have been around air cargo my entire life as I am the ‘second generation’ in my family to be in air cargo. My father was the founder of Emirates SkyCargo so you can say air cargo runs through my blood. Professionally I have been working in the domain for 11 years now. Took a small break when I was with Amazon but came back to my roots last year when I re-joined Wallenborn.

CFG: What do you enjoy most about your job?

RM: Logistics is a dynamic industry with constant challenges. I don’t like quiet and calm, so the hectic nature of the business appeals to me. I get to meet new people, experience new cultures and ways of thinking on a very regular basis, which helps me grow as a person. There are so many talented people in the industry that the scope and potential to learn and grow are unending. To survive and thrive, you learn to make decisions on the fly and execute without having all facts, making sure that life is never boring. I enjoy building lots of somethings out of nothings, and truly enjoy running teams and helping my teams to grow as individuals. I believe in the pass-it-on concept and was lucky enough to learn from some of the best; so now it is my turn to share where possible and also to continue learning.

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

RM: People and technology are the two biggest factors. It is getting harder and harder to attract talent for numerous reasons, and the age delta within the industry is becoming apparent. You have a lot of the founders and pioneers coming of age where they enjoy their well earnt retirements, but the knowledge gap is growing larger and larger as the transfer of tribal knowledge is not being done in a structural way. Technology is a big topic as well. In discussing with my dad, challenges that we are facing today are the same ones that he faced two decades ago, showing that there has been a distinct lack of innovation on many fronts with regards to air cargo. E-commerce has shown that there is a way, but the air cargo industry needs to adapt and get with the times as well now in or to sustainably scale and grow in the future.

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

RM: Come into the industry with a eyes wide open perspective. This is a tough industry to be in with many challenges and rewards. If you want an easy life, then go work for the government. If you like a challenge and want to continuously be tested, this is the place to be. Start small, start humble and work your way up. In this industry, if you work hard, you can and will be rewarded. I started at the bottom doing truck monitoring and then planning and worked my way up within a decade. Anything is possible if you risk it for the biscuit and trust that things will work out. Getting training via university or certifications is super important and I put a lot of value on this, however, theory and practice are worlds apart sometimes, and having both is super important. Hence, get stuck in, start from the bottom, and work your way up. Understand the company / industry that you are in from the grassroots level and keep being hungry for growth. Learn by doing has always been my motto and I continue to live by it.

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

RM: Sun Tzu, the art of war.

Excellent! Thank you, Ram.

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.

Hapag-Lloyd adopts new Strategy 2030

Heiner Siegmund
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Hapag-Lloyd adopts new Strategy 2030

The document specifies and updates the Hapag-Lloyd’s previous objectives, and names five building blocks as future priorities: the rapid modernization of its fleet, achieving quality leadership, strengthening sustainability efforts, becoming one of the most innovating maritime actors, and continuously increasing operational efficiency.
Further to this, the shipping company announced plans to retrofit and convert five 10,100 TEU container ships powered by conventional motors to dual-fuel engines capable of operating on methanol which drives down greenhouse gas emissions.

The updated ‘Strategy 2030’ is the result of in-depth market analysis and customer insight, as well as extensive internal collaboration including input from the company’s global experts, the shipping line states in a release. Top priorities are delivering outstanding and tailored customer service while prioritizing environmental responsibility and innovative digital solutions to navigate the ever-changing global landscape. “Our ‘Strategy 2030’ is our most ambitions masterplan to date,” exclaimed CEO, Rolf Habben Jansen, while presenting the new operational framework.

Improved punctuality, less greenhouse gas emissions: These are just two of the goals standing in Hapag-Lloyd’s ‘Strategy 2030’, announced by CEO Rolf Habben Jansen last week. Photo: CFG/hs

Cross-divisional strategy
Compared to the previous development priorities, there are no radical changes or decisive novelties. However, the aforementioned targets are to be implemented at an increased pace across all divisions, holistically and binding on and off shore. The new Terminal and Infrastructure division, based in Rotterdam and announced in SEP23, has already been included in the scheme. In future, it will also be responsible for upping the carrier’s share of inland transport in direct support of its core global maritime business.

Binding punctuality of voyages
As far as the reliability of transportation is concerned, the Strategy 2030 sets a punctuality rate of 80+% as a binding quota on its way to achieving operational excellence. According to management, the Gemini Cooperation with Maersk announced only weeks ago, “will be an important step towards realizing this goal.”

In a nutshell, Hapag-Lloyd aims to remain an industry frontrunner by leveraging cutting-edge IT solutions, increasing productivity, and achieving even higher performance ratings by its customers. As part of its commitment to fighting global warming, it is scaling up its sustainability efforts aimed at continuously reducing greenhouse gas emissions by around one third come 2030.

Retrofitting initiative
Further to this, the shipping company has entered into a new pact with Hong Kong-headquartered Seaspan Corporation, aimed at retrofitting and converting five 10,100 TEU container vessels powered by conventional MAN S90 motors to dual-fuel engines capable of operating on methanol.

Maximilan Rothkopf, COO Hapag-Lloyd, noted: “The methanol retrofit project is a further step in our ambitious sustainability agenda which aims to achieve the decarbonization of the entire fleet by 2045. By enabling these vessels to use green methanol as of 2026, we will meet our customers’ growing demand for green transportation solutions.”

Hapag-Lloyd favors the use of green methanol
Torsten Holst Pedersen, Chief Operating Officer (COO) of Seaspan, commented: “Collaboration between strong and like-minded partners, Hapag-Lloyd and Seaspan, drives innovation. Retrofitting must be an integral part of the strategy if the container shipping industry wants to deliver on its decarbonization targets.” In addition to investing in newbuilds or retrofitting its current fleet, Hapag-Lloyd is stepping up its efforts to explore the sourcing of green fuels. In this context, it has been shown that green methanol is one of the promising low emission fuels of the future.

Nordic Air Cargo Symposium is a must for Nordic cargo managers

Heiner Siegmund
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Nordic Air Cargo Symposium is a must for Nordic cargo managers

Tomorrow (22APR24), the Nordic Air Cargo Symposium will be kicked off. This time, it is being held in Sweden’s capital city, Stockholm. The program is colorful and diverse, and offers participants trend analyzes on the market development of air freight in the Nordic countries. As in previous years, the Nordic trade show is organized by the Swedish agency, Euroavia. CargoForwarder Global (CFG) spoke to its owner, Lars-Gunnar Comen (LGC), about the upcoming event in Stockholm and what he sees as the highlights:

Swedish national Lars-Gunnar Comen is one of the most experienced organizers of cargo and transport events worldwide – picture: LGC

CFG: Lars-Gunnar, all items listed on the agenda are certainly interesting. But which topics and sessions should participants not miss?

LGC: The first Nordic Air Cargo event was launched in 2003. More importantly, the conference next week will be my company’s 50th event since start 1999, when we arranged our first conference ‘Air Cargo in a New Millennium’ at Sky City, Stockholm-Arlanda Airport. Hard to believe that we have organized 50 events in 25 years! We have done conferences in 17 different cities in 13 countries in Europe, Middle East, CIS, Africa, and Asia.

One of the highlights of the Stockholm event will be the Roundtable discussion with the two new cargo heads of SAS Cargo, Magnus Ek, and Finnair Cargo, Gabriela Hiitola, moderated by Steven Polmans, Chairman, TIACA. Many delegates are keen on learning more about the future of our Nordic flag carriers.

CFG: Crises in the world are increasing rapidly, as Russia’s war against Ukraine, or Iran’s recent attack on Israel, show. Will the supply chain disruptions for Scandinavia, caused by these conflicts, be discussed in depth at the Symposium?

LGC: Yes, no doubt that we are experiencing highly turbulent times in general, including market and operational conditions for air carriers, forwarders, and supply chain giants. Disruption seems to be the new normal! We do not have any specific session for ‘supply chain disruptions’. However, many sessions will discuss opportunities and challenges in specific contexts. I am sure that our speakers will assess various aspects of disruption in the air freight supply chain.

CFG: Jonas Abrahamsson, CEO of Airport Operator Swedavia, delivers a keynote. Swedavia engages together with roughly twenty other airports in the Nordics, Baltic Region, and Germany, in pushing the use of Hydrogen-powered airport operation up front. Surprisingly, this groundbreaking initiative is not part of the Symposium’s program. Why?

LGC: Swedavia is our host sponsor, and we are indeed very grateful for their support. We do not really dictate what they should focus on. They have a great speaker in the session ‘Sustainability – The Way Forward’. Maybe they will highlight hydrogen powered airport operations. Wait and see. Will be a cliffhanger for you!

CFG: Another phenomenon is that low-cost carriers such as Norse or Norwegian, to name just two candidates, are fast gaining traction and market share, also in cargo. They are not part of your program. Any reason?

LGC: Number of potential interesting topics are very high. We cannot include all the interesting speakers you have in mind. The main cargo trade lane for Norse today, and Norwegian when they operated Trans-Atlantic flights, was salmon from Norway to the United States. Seems like Cargo Manager of Norse Atlantic Airways will attend our conference. Catch him!

CFG: Although the three Baltic countries are not precisely part of the Nordic region, their aviation industry is developing fast, as are their cargo activities. Wouldn’t it be an option worth considering to focus on their air traffic and cargo ascent in future Nordic Symposiums?

LGC: We have discussed the Baltic air cargo market in the past. Currently, due to the geopolitical situation, air cargo has been down in the Baltic states. One reason is that, until 2022, both Riga and Tallinn had quite a lot of transfer cargo into the Russian Federation. Gone. I am glad that we will have delegates coming from Estonia, Latvia, and Lithuania. They are our dearest friends and maybe we will do a panel on the Baltics again in coming years.

CFG: Looking at the many topics listed on the Symposium’s schedule: What is your personal highlight that you are most looking forward to?

LGC: Well, as already mentioned – the Nordic cargo heads roundtable. Furthermore, I look forward to learning from our speakers in ‘Trend Spotting Nordic Air Cargo Market’. Frank Van Gelder will set up a really cool session on ‘The New Life Science Horizon’. All sessions will be really interesting. It is not too late to register. Go to https://www.nordicaircargosymposium.com

CFG: Finally: When will the next Nordic Air Cargo Symposium be held and where?

LGC: We do not yet have the dates set for the Nordic Air Cargo Symposium 2025. Our highly successful event, World Cargo Summit, will be organized next year in Belgium! January 27-29, 2025, hosted by Ostend-Bruges International Airport.

CFG: Lars-Gunnar, thank you for this interview and good success with the event.

E-Commerce is going through the roof in the ME

Heiner Siegmund
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E-Commerce is going through the roof in the ME

DHL Global Forwarding speaks of an ‘explosion’ of e-commerce in the Middle East, setting new records, year after year, in the region spanning from the Lebanon to Oman, including Qatar and Saudi Arabia. In 2025, it will surpass the USD 50 billion barrier, forecasts the logistics unit of DHL-Deutsche Post.

The development is driven by three key factors, growing consumer demand in combination with cutting-edge technologies and government support. Combined, these three factors jointly catapult digital economies in the Middle East skywards, states Amadou Diallo, CEO of DHL Global Forwarding Middle East & Africa, in a contribution to the Dubai-based regional newspaper, Khaleej Times. In addition, the executive reminds that this trend is further accelerated by a young and tech-savvy population embracing online shopping, whereas the former generation was still reluctant to shop via the worldwide web.

Amadou Diallo of DHL Global Forwarding expects Artificial Intelligence to fundamentally transform the logistics industry – picture: company courtesy

AI betters logistics processes
The DHL executive points out that Artificial Intelligence (AI) has enormous potential to optimize logistics. Currently, AI is enabling possibilities for smarter route planning in trucking and last mile delivery, which means faster flows of goods with reduced fuel burn and greenhouse gas emissions. Customers are offered a more accurate time window regarding the delivery of their orders, along with the flexibility to individually manage that delivery. In an industry typically characterized by uncertainty, volatility and cumbersome processes, AI could be the door opener for the e-commerce business to become increasingly efficient, Amadou Diallo remarks.

Huge impact
The executive went on to say that the impact of AI on the logistics industry is immense. But this is only the beginning. Further developments are expected in Interactive AI, which will transform the customer experience. With Interactive AI, customer service automation makes immediate email responses, automated phone services, and integration with most widely used text messaging platforms, possible. This relieves employees of repetitive and uncreative tasks and enables them to perform more demanding assignments.

Chatbots are increasingly taking over tasks
According to the DHL Global Forwarding executive, Chatbots, in particular, can help logistics companies handle low to medium-volume call center queries about delivery requests, order edits, shipment tracking, and responding to FAQs. Chatbots represent today’s fastest-growing brand communication channel as illustrated by 2020 data showing a handling rate of chat completion from start to finish of almost 70%. Since then, this proportion has increased significantly. Chatbots can also facilitate valuable analytics metrics, enabling the company to better understand customer needs and enhance the customer experience.

Matching supply and demand
Once analyzed, data captured on an interactive AI platform can provide valuable insights to the business. For example, “companies may better understand customer pain points and consumer behavior patterns, enabling more effective marketing campaigns to attract potential leads,” states Mr. Diallo. It can also help retailers and e-commerce businesses to efficiently manage the supply chain while ensuring supply and demand are met at operational level.

Thanks to AI, logistics is increasingly transforming from a quiet, back-end operation into a strategic asset and value driver. Concurrently, exciting new opportunities are opening up in the logistics industry, to develop and apply innovative technology solutions to streamline operations and to increase customer contentment, the DHL manager rounds off.

The Temu tsunami

Heiner Siegmund
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The Temu tsunami

For months, small consignments from the online marketplace Temu have been flooding the EU and North America, with rapidly growing volumes. The next candidate is Africa, where Temu wants to use a large distribution center in Addis Ababa to spread its products across the continent. The Chinese e-trader’s preferred means of transportation is by air. However, Temu’s reputation is shaded by some dubious practices and trade violations committed by its parent company Pinduoduo, that sold large numbers of fake products due to price pressure.

Cheap, cheaper – Temu – image: company courtesy

Whether earrings, necklaces, hair clips, sunglasses, or vintage baseball caps – there is hardly any product Temu does not have on offer. Most of them are extremely cheap and of limited volume or weight, this way fitting into small packages in cross-border trade. In case the value of an item is below 150 euros, it is exempt of any customs duties. However, VAT have to be paid from the very first cent. In Germany it’s 19%, in France 20% and in Italy 22%. In Canada, the taxes vary and are levied autonomously by the provinces. It’s 13% in Ontario and 15% in Nova Scotia, for instance.

Low prices, no customs duties
The duty-free limits are particularly interesting for Temu. This is shown by the product prices on their website, where almost all items cost less than EUR 150, i.e. they must be declared electronically to the customs authorities of the destination country before arrival but remain free of charge. This will stay so for the next 5 to 6 years. Only then will a simplified customs procedure be introduced in the EU and the value limit of EUR 150 will no longer apply. In the future, small shipments from Temu will therefore also become more expensive for buyers, unless the Chinese online service pays the customs dues out of its own coffers.  

Updated Tupperware praxis
At present, however, the e-seller would hardly be in a position to do so, as the 2023 financial year ended with losses. But these are priced in. Because Temu is all about volume. The higher the turnover, the more likely the e-tailer is to make a profit. To this end, the online platform has developed a snowball system. Customers receive discounts if they acquire more buyers. This process is known as “social commerce” and reminds of the traditional Tupperware practice.

Most Temu goods travel by air freight
The majority of goods produced in China and destined for customers in North America or Europe are transported by air. In contrast to integrators such as UPS or FedEx, Temu does not offer time-definite products such as 48h or 72h deliveries. Mostly, it takes 10 to 14 days from order to handover.

Speaking of data: Temo prefers to draw a veil over business figures. There is no information on market shares, claims, or performance figures. They are kept under wraps. Negative customer experiences, if made public, could damage the company’s reputation. For example, there are no statistics that show how many of the 300,000+ small consignments that travel from China to Leipzig, Frankfurt or Munich every working day belong to Temu. The same applies to Amsterdam, Paris CDG, Budapest, Milan, London and Liege.

Direct supply chain
In contrast to Amazon, which warehouses most products at fulfillment centers Temu allows vendors in China to sell and ship directly to customers destined in overseas. It is a typical form of direct sales in which Temu only acts as a middleman between seller and buyer, organizing the physical handling of the business process and collecting a service fee in return. The prerequisite for this is that e-traders such as Temu need to be admitted a tax ID-number from the national authorities of the designatory countries, which is automatically debited according to the reported value of the goods.

Data trap
As Temu does not act as a seller, product liability is loaded on the buyer’s shoulders. This leads to customer frustration in case the quality of an item does not match the announced functionality. Another source of annoyance is that Temu passes on customer data to third parties for commercial purposes. Users of the platform cannot prevent this as there is not corresponding button which can be activated. Temu and Shein, an e-tailer specialized in fast fashion, have contributed to an 8% growth in Chinese cross-border e-commerce trade last year. This figure is published by the Trade and Transport Group, a Sydney, Australia-based specialized aviation and transportation advisory data manager. In addition to airlines and integrators, airports and customs clearance specialists are also benefiting from the avalanche of small and cheap items flooding many markets. This also applies to last-mile deliverers.

Mistrust prevails the debate on future of air cargo in the Netherlands

Marcel Schoeters
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Mistrust prevails the debate on future of air cargo in the Netherlands

Frustration is growing within the Dutch air cargo community as the comprehensive ‘10 commitments plan’ presented by 31 parties earlier this year is not taken seriously – neither by the government nor by the airport. According to Maarten van As, Managing Director of Air Cargo Netherlands (ACN), the lack of trust between the stakeholders is apparent.

ACN was one of the parties endorsing the plan, which was designed to make the aviation industry in the Netherlands future-proof. Apart from ACN, the plan was also signed by knowledge institutions, carriers, trade unions and the manufacturing industry.

Schiphol’s own ‘8-point plan’ is no more than a trial balloon, claims Maarten van As, Managing Director Air Cargo Netherlands – courtesy: ACN
  • A good balance with the surrounding area
  • Keeping the Netherlands connected to the rest of the world
  • Keeping aviation accessible to all Dutch people
  • A stronger global and European policy
  • Securing Netherlands’s role as forerunner in production, logistics and purchase of sustainable fuels (SAF)
  • Achieving the climate goals for 2030 and being on the right path to Net Zero Co² in 2050
  • Increasing the number of international trains and thus securing excellent connectivity to Schiphol
  • Increasing the recycling rate and lowering the waste produced by the aviation industry
  • Reducing aviation noise further both during the day and at night
  • Enabling faster market access for innovative solutions, such as electric and hydrogen flying
  • Preserving Schiphol’s role as a sought-after and safe working place.

Strengthening, not reducing Schiphol’s role as air cargo hub
Earlier this month, the 10 commitments scheme was discussed in The Hague with the Parliamentary Commission Infrastructure and Water Management (I&W). Since the latest election in November 2023, the make-up of this commission has changed considerably, with the accession of new I&W spokespeople and members of two new parties which will probably be part of the right-leaning coalition that is expected to rule the country.

At the The Hague meeting, ACN and the shippers’ organization, evofenedex, once again stressed the importance of Schiphol as a leading European air cargo hub, arguing that both a reduction of the number of movements and a night flight ban would seriously harm its role. It would, moreover, jeopardize the interests of Netherlands-based companies that depend on an international value chain, utilizing air cargo as important mode of transportation. This holistic view was endorsed by representatives of leading companies participating in the discussion.

Stillborn government plan
The plan was drawn up to provide an answer to the plans of the Dutch government to tackle the problem through a reduction of the number of movements at the airport as well as imposing a night curfew, which turned out to be stillborn, commented Maarten van As.

“The proposed movement cap has not only triggered off a huge social debate, but has also brought a number of legal procedures in its wake. In June 2022, I&W Minister Mark Harbers suggested a cap on the number of movements to reduce the noise pollution for the surrounding area. Very soon, we made it clear that the proposed path he wanted to take would not be legally feasible.”

“The way in which he informed the European Commission on the balanced approach and the proposed cap, turned out to be wrong. Also, the introduction of a temporary rule at first ok’d by the Amsterdam Court, seems to have run aground at the Supreme Court after a critical ruling by the Advocate General.”

“Very painful indeed, not only for the minister and his advisors, but especially as it has led to a situation of parties standing back-to-back. Residents at first felt supported by the ministers, but now have the feeling of being let down by the government and the industry. On top of this, there’s the airport with its own ‘8-point plan’ which, in the eyes of the residents, has turned out to be no more than a trial balloon. In one word: every form of direction is lacking.”

Total lack of trust
Mr van Asrepeats that the 10-commitment plan presented earlier this year, clearly demonstrates that all the minister’s policy aims can be met. “But to our great astonishment, it is still not taken seriously by neither the ministry nor the airport, who are still fixated on ‘flying less’,” he sighs.

“That was the reason for the recent meeting at The Hague at which all signatories to the plan demonstrated that there is a solution that does not harm the position of Schiphol and the companies in the Netherlands.”

“Personally, I think that, at the moment, the debate has ended up in a total lack of trust between the different parties (ministry, Schiphol, residents and the aviation industry). As long as we do not work this out, it will become very difficult.”

Mr. van As thinks thatpart of the problem may be rooted in the Protestant way of reasoning ingrained in the mentality of the Northern Netherlands. “A solution involving ‘pain and penance’ will always be favored over a solution without ‘pain and penance’,” he says.

AFKLM Cargo welcomes the Netherlands’ first and only Koalas

Brigitte Gledhill
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AFKLM Cargo welcomes the Netherlands’ first and only Koalas

Who would have thought it? Until a couple of weeks ago, no Koala had ever set foot on Dutch soil… And now, three Koalas are settling down in their new habitat at the Ouwehands Zoo in Rhenen, preparing to delight zoo visitors from 25APR24, onwards. A special, custom-built enclosure called ‘Koalia’ has been erected there, and the Koalas are part of an international program dedicated to protecting their species. Over the past few years, Koala numbers have rapidly declined (particularly following the devastating fires of 2019/2020), leading to the Australian government classifying them as ‘endangered’. They are otherwise listed as ‘vulnerable’ on the IUCN Red List and are the only ones of their species with an estimated 300,000 mature animals in the wild.

While the real ones settle into ‘Koalia’, AFKLM Cargo celebrate a project well done. Image: AFKLMP Cargo

As with every animal transport, a great deal of preparation goes into ensuring that their journey is smooth and with minimum stress to the animals. Air France KLM Martinair Cargo is well-acquainted with animal-friendly transportation and boasts the KLM Animal Hotel at its Schiphol hub, complete with trained animal stewards who look after the animals before, throughout and after their journey. This was not the first collaboration with Ouwehands Zoo in the Netherlands. Back in 2017, KLM Cargo carried giant pandas all the way from China to the zoo in the Netherlands.

This time, in addition to the airline’s own expert staff, it was an animal caretaker from Ouwehands Zoo who left for the Californian San Diego Zoo on 04APR24, to collect the koalas. She spent a number of days there, training with their caregivers, before bringing the three koalas back with her on a KLM aircraft, from Los Angeles. That flight landed at 08:45 on 19APR24, and the Koalas were immediately taken from the aircraft cargo hold to the KLM Animal Hotel. Here, they were seen by a vet and customs cleared before carrying on to the final leg of their journey – from Amsterdam to their new home at the Ouwehands Zoo in Rhenen.

Meanwhile, over at Lufthansa Cargo last week, it was a couple of pygmy hippos who were the special guests on board of an A321F freighter, flying from Madrid (Seville Zoo) to Frankfurt and on to Mumbai, India. Whoever claimed that cargo is boring?

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