Regional Report: Europe Collaboration solutions for handling volatility Experiencing turbulence AirBridgeCargo’s up-and- down year Seeking opportunities MISSION CRITICAL GSSAs respond to the Covid-19 vaccine logistics reports challenging times Technology and the warehouse Bringing machine learning to the air freight shed caasint.com Winter 2020 ITALY’S NORTH EAST IRPORT SYSTEM

With the aim of responding Customs, available 24/7, today’s logistic needs, provides for speedy clearance. Brescia Airport has developed Quality ground operations: a its legacy of a specialized, specialized, skilled and cargo- only dedicated team support cargo-drive airport. A Cargo the high quality and efficiency Center equipped with state- of our ground handling of-the-art equipment for the operations. best management of air and Cargo warehouse sq. over sum 11,000 - Offices sq. m 1,000 - road freight to accomodate 24 hours operations 7 days a any market request. week - Handling capacity: over 150,000 Tons/year (palletized and loose) - Fast and seamless www.aeroportobrescia.it accessibility to the main road network. Front cover image courtesy of Brescia Airport aeroportobrescia.it Contents WINTER 2020

04 Airline Interview: AirBridgeCargo It has been a turbulent first year as General Director for Nikolay Glushnev, and one that has changed the airline’s business model

Issue 32 2020 www.caasint.com

Content may not be reproduced in any format 12 GSSA Focus: ECS Group without written permission Adrien Thominet discusses the role and from EVA International Media Ltd responsibilities of cargo sales agents in a time of 04 massive and rapid change Join the conversation Twitter: @caasint Linkedin: /Caas-magazine

Advertising opportunities Technology and the Warehouse: The Contact Mo Banks on 20 + 44 (0) 20 8253 4017 Augmented Shed [email protected] The latest emerging tech developments promising to enhance efficiencies within air cargo handling Address changes and subscriptions: facilities and to their landside and airside interfaces [email protected]

ISSN 2054-8958

12 28 Pharma Focus: Covid-19 Vaccine Delivery EVA INTERNATIONAL MEDIA LTD The emergence of the first successful COVID-19 PUBLISHERS & EVENTS SPECIALISTS vaccines has heightened the focus on the massive The opinions expressed in and challenging air logistics operation needed this publication are those of the individual authors or advertisers and do not necessarily reflect those of EVA or its members. The mention of specific 48 Vaccine Logistics: Air Freight Planning companies or products in articles or advertisements Preparations by cargo stakeholders for contained herein does not transporting and distributing COVID-19 vaccines imply that they are endorsed or recommended by EVA. have been moving forward rapidly

Published by: EVA International Media ltd 28 Boswell Cottage 19 South End, Croydon London, CR0 1BE, UK 56 Regional Report: Europe Tel: +44 (0) 20 8253 4000 The region’s top airport cargo communities Fax: +44 (0) 20 8603 7369 have coped with this year’s extreme volatility by www.evaintmedia.com collaborating more closely than ever

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Distributed By: Air Business The Merlin Centre Acrewood Way, St Albans AL4 0JY, United Kingdom 48 Editor’s NOTES Will Waters [email protected]

A big job ahead

The first ‘Sunrays air freight readiness’ survey air freight associations. And at a number of airports, in September highlighted “a concerning lack of where COVID-related demand and capacity issues readiness” within the air freight sector for the have led to a mixture of warehouse under-capacity challenge of COVID-19 vaccine logistics. and over-capacity, cooperation between cargo handlers has helped even out capacity and resource The majority of companies that responded to the issues – as highlighted in the Europe Report (page 56). survey, commissioned by TIACA and Pharma.Aero, said they had begun making preparations to handle, Concerns about the capacity to maintain vaccines at store, transport and deliver COVID-19 vaccines. deep-frozen temperatures at various points in the But barely one in four said they felt well-prepared. logistics chain have included on board aircraft, where And there was a significant deficit in the number there are safety limits on the amounts of dry ice – of companies able to store or transport shipments usually needed to maintain ultra-low temperatures at deep-frozen or ultra-deep-frozen temperatures – that can be transported. But new capabilities have down to -80°C. been emerging at a rapid pace – including deep- freeze containers that do not require dry ice. And Two months on, much has happened, and the two as more vaccines emerge from late-stage trials that associations have begun preparing a follow-up do not require deep-frozen product temperatures, survey. In the meantime, preparations by many air some of these concerns may now ease. freight stakeholders have been moving forward rapidly – as highlighted by two major reports within Elsewhere in this issue, there are signs that COVID-19 this magazine, starting on pages 28 and 48. has accelerated a number of plans to implement new technology solutions (page 20) at various parts of The good recent work on airport cargo community the air logistics chain – and existing trends towards cooperation, which has risen to a new level during growing e-commerce traffic and pharmaceutical this COVID-19 crisis, has continued, with several volumes (page 4). airport cargo communities setting up local dedicated COVID-19 vaccine logistics taskforces. These have Amid the devastating effects of COVID-19 on global begun to assess and build capacity, identify and aviation, and the huge disruption it has caused fill gaps, and share best practice – and potentially to air cargo, the increase in collaboration and facilities and resources. modernisation initiatives are two positives. And with the apparent imminent arrival of effective COVID-19 Those already collaborating have seen that process vaccines, aviation and air freight have some positives accelerate, and new collaborations have arisen – not to look forward to. But in the meantime, this sector just on a local level, and including among the various has a big job to do!

James Sheridan Parveen Raja Mo Banks Chairman Publisher Sales Manager [email protected] [email protected] [email protected]

Charlotte Willis Gemma Keen Alpha Diallo Office Manager Events Coordinator Graphic Designer [email protected] [email protected] [email protected]

Shobhana Patel Salam Raja Head of Finance Producer [email protected] [email protected] RAISING THE BAR WELCOME TO SMARTIST, OUR NEW HIGH-TECH FACILITY IN ISTANBUL - THE LOGISTICS CENTRE OF THE WORLD. WE'RE ALSO RAISING THE BAR FOR ENVIRONMENTAL RESPONSIBILITY AND CUSTOMER-FOCUS, MOVING TOWARDS OUR GOAL OF BECOMING THE WORLD'S LEADING AIR CARGO BRAND.

turkishcargo.com.tr Airline Interview: AirBridgeCargo

Accelerated development As well as propelling freighter operators to the forefront of global logistics efforts, Covid-19 has heightened the focus on three key verticals that were already emerging as the prime areas for future growth, says Nikolay Glushnev, General Director of AirBridgeCargo Airlines. And it has also changed the airline’s business model, Will Waters reports

This year has been so extraordinary that it is and China – undermined global economic and Atran Airlines – was hit particularly easy to forget that many cargo airlines had confidence. hard financially by the downturn, with a very difficult year in 2019, even before the some reports indicating the group had challenges of 2020. Full-year figures for 2019 show that air freight experienced operating deficits amounting to tonnages dropped by around 4%. FTKs fell hundreds of millions of dollars by late 2019, In what now feels like ancient history, if by just over 3%, average yields by around forcing the group to make cuts to staff and we cast our minds back we may just recall 7%, and overall global air freight revenues services. After registering a 6% decline in that after the restocking boom of 2017 had declined by close to 12%. cargo volumes during the first half of 2019 gradually fizzled out as 2018 progressed, – 20% below its expectations and budget global air freight volumes and yields went Ambitious growth strategy – the group in August 2019 announced a into retreat in most major markets by the Pursuing a relatively ambitious growth series of restructuring measures, aiming second quarter of 2019 amid a slowdown in strategy, Volga-Dnepr Group (VDG) – parent to “restructure the management team and world trade growth, as trade and geopolitical company to cargo carriers AirBridgeCargo increase operational effectiveness”, to “allow tensions – particularly between the US Airlines (ABC), Volga-Dnepr Airlines (VDA), the group to get back to the growth strategy”.

4 CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 Airline Interview: AirBridgeCargo

dominated air freight market became instead dominated by imports of medical and other “Healthcare, supplies, but at reduced capacity. By early March, available air cargo capacity to and e-commerce and from China was down 39%, with belly capacity down 85% and maindeck capacity down by high-tech will be 12%, according to Seabury.

the growth drivers With most scheduled flights cancelled, those cargo airlines still operating to and from not only for the air China were mostly doing so via charter flights, cargo industry but adding additional challenges. ABC says that even though the airline did its best to operate for most leading as many flights as possible, “you cannot compare their number with the number of economies in the scheduled flights”.

years to come” Severe strain on cargo airlines By late February, the strain had taken a severe toll on many cargo airlines, with some Nikolay Glushnev smaller carriers forced to cease or suspend operations. ABC affiliate CargoLogicAir was among them, due to its exposure to

“the drastic decrease of market demand”,

particularly ex-China. ” Plans for Boeing to deliver four freighter aircraft to VDG – one B747-8F and three B777 freighters – were reportedly terminated because of the challenges facing the airline group at the start of this year, although some Within a one-month timeframe, we of the details of that are contested.

managed to reshape processes which But by late March, the mass cancellations of flights by passenger airlines globally, normally would have taken months combined with a revival in Chinese manufacturing production and international to complete demand – particularly for PPE – brought a vital new role for cargo airlines and a sudden and massive shift in the supply-demand ” balance. By the end of March, the loss of Nikolay Glushnev two thirds of passenger bellyhold cargo capacity – equivalent to 400 B747-8Fs a day – meant freighters were providing 75% of air cargo capacity on major global trade Nikolay Glushnev replaced Sergey Lazarev environment following the Phase 1 US-China lanes, compared with around 45% before the as general director of the group’s scheduled trade agreement were soon dashed by the coronavirus crisis. airline, ABC. Glushnev had held various arrival of the ‘new coronavirus’. positions within ABC – including most By late April, global air cargo capacity had recently as director for operations – and Although its ultimate impact on the global begun to stabilise at around 35% below 2019 was given the key focus “to restore ABC economy was still unknown, its initial impact levels, thanks mainly to the deployment of customers’ confidence”. on Chinese and global supply chains – and the all available freighters in the market, plus the air freight sector that supports them – was use of some passenger aircraft as ‘passenger Hopes of stability dashed severe. The extension of China’s normal lunar freighters’ or ‘preighters’ – in many cases to By early 2020, there were some signs that new year factory closures for several further help meet frenzied demand for capacity to fly business confidence and air freight demand weeks led to the large-scale cancellation PPE equipment. Freighter capacity deployed may pick up, encouraged by the partial easing of air and ocean services from China in the rose to 14% above 2019 levels, with outbound of the trade tensions between the US and first quarter, along with massive disruption China freighter capacity up 45% versus 2019 China. But hopes of a more stable economic to supply chains. China’s normally export- levels. Utilisation of widebody freighters also

CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 5 Airline Interview: AirBridgeCargo

Covid-19 tests, PPE, dedicated hotel accommodation and crew transport, and the disinfection of equipment, cargo and aircraft.

He attributes the speed of the company’s reactions “to the joint experience within Volga-Dnepr Group: throughout 30+ years, we have weathered various crises and learned from the best experience, like the battle against Ebola and yellow fever spread. Basically, we did not have to start from scratch, as most of the internal procedures have already been in place,” Glushnev says.

Flexible culture He says the ability to be flexible was also something ingrained within the culture of the cargo airline used to responding to customer demand, “which has enabled us to VDG is expected to increasingly seek synergies offer more charter options and long-term between the activities of its three airlines charter programmes. This has become the backbone of Covid-19 logistics, as sometimes increased, up 16.5% on average since January, by the second week of November. the situation changed within minutes and we Seabury highlighted. This is the wider context of Nikolay Glushnev’s all needed to act accordingly.” first year in charge of AirBridgeCargo Buoyant freighter market Airlines. Although cargo airlines are now in a But last year’s challenges had also shaped the Following the slow reintroduction of some much stronger position than when he took company into a lean organisation. “While 2019 passenger air services since the end of the charge last year, navigating a successful path had not been the best year for the air cargo first wave of Covid-19 lockdowns, and the through the various challenges has required industry, it helped us significantly to prepare continuing use of ‘preighters’, the proportion considerable agility. for the Covid era, as we introduced additional of freight carried on passenger aircraft has measures for cost-optimisation and were continued to recover, reaching 41% by the “Indeed, this is an exceptionally turbulent year prepared,” Glushnev notes. end of September, according to WorldACD. which required flexibility, adaptability and That still leaves freighter operators with a speed of reactions,” acknowledges Glushnev. Revenue growth of 45% much-elevated 59% of the air freight market Rapid reactions required Despite the huge challenges in the first – and a market prepared to pay much higher quarter of 2020, and existential threats to prices for the constrained capacity available. “With COVID-19’s rapid spread, lockdowns many airline and air cargo businesses, the loss and closure of borders, we needed to react of bellyhold capacity this year and subsequent Indeed, in its analysis of the “first two Covid quickly and adapt our regular schedule, surge in demand for freighter capacity has -19 quarters”, the period April-September process charter permits, re-configure our enabled ABC to more than recover in terms 2020, WorldACD estimates that total airline network, and re-route most flights via of revenues this year, if not yet fully in terms cargo revenues increased by 42% during Krasnoyarsk instead of Moscow – to avoid of volumes.

this period, despite a 21% YoY decrease in crew changes in China and 14-day quarantine,” tonnages carried, thanks to average yields he highlights. “This all happened within a one- ” increasing by 81%. month timeframe; we managed to reshape processes which normally would have taken Recovery of demand and capacity months to complete.” The gradual recovery of demand and capacity He continues: “We were able to adjust to While 2019 had not been has continued; by October, flown tonnages the changing environment and introduce the best year for the rose another 8% compared with September more charter options in the beginning, and air cargo industry, it and had recovered to just’ 11% below October long-term charter programmes for our long- 2019 levels. And although average global standing customers later on to guarantee helped us significantly to yields may have fallen somewhat from their capacity availability and support our prepare for the Covid era extraordinary levels in May, they remain high customers’ business activities.” by historical standards; since August, they have averaged more than 60% higher than It also required major changes within the the equivalent period last year – rising further business – including additional biosafety ” Nikolay Glushnev as the peak season has developed, to US$3.28 measures such as crew medical checks,

Airline Interview: AirBridgeCargo ” “The results of the first nine months increase) and live animals (1.5-fold increase),” demonstrated rather positive dynamics for Glushnev highlights. “The rise in these sectors this exceptional year in terms of volumes come as no surprise as people tended to (-5%) and revenue,” he notes, with revenues change their buying behavior: from offline to We have always followed for the first nine months up 45%, YoY. He online shopping due to lockdowns; countries market sentiment and attributes this achievement “to our diversified needed to supply the nations with PPE, customer demand, which product programme – scheduled, charter, medical gowns, medical equipment and other long term charters – ability to leverage Covid-19-related cargo,” with some food has enabled us to offer Covid-19 shipments with regional outbursts, commodities also switching to air freight amid more charter options and to keep uninterrupted deliveries of the pandemic. and long-term charter essential cargo under strict restrictions”. Part of the increase in e-commerce volumes

has come from “a rise of high-tech goods

programmes. This has He adds: “With passenger fleets being ” become the backbone grounded during spring and a slow recovery of Covid-19 logistics, as throughout summer and autumn, air cargo sometimes the situation carriers were at the forefront and were expected to provide speedy, reliable service in We have seen the upsurge changed within minutes line with novel biosafety measures.” and we all needed to act in e-commerce volumes – an almost four-fold accordingly Changing commodity types Meanwhile, ABC has seen a number of increase. changes this year in terms of the volumes and proportions of various commodity ” types that it carries – partly directly because Nikolay Glushnev ” of Covid-19. “We have seen the upsurge in Nikolay Glushnev e-commerce volumes – an almost four-fold increase; healthcare products (two-fold

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when people tried to equip their ‘work-from- authorities, airport managements and ground The rapid changes required this year have home’ environment”, Glushnev says. handlers to guarantee smooth cargo operations obviously created significant challenges for import-export traffic, which resulted in over operationally, including on the ground. But the rapid growth of ABC’s e-commerce 120% growth in tonnage in Leipzig and almost business has been no passive development; 50% growth in Liege for the first nine months of Glushnev says the biggest challenge has been it has accompanied a strategy to actively 2020, YoY. to guarantee high-quality services throughout build its operations around key players in this the whole air logistics chain, requiring market – including partnerships with fast- “While the pandemic influenced many “particular attention to stakeholder relations, growing Alibaba logistics specialist Cainiao sectors, e-commerce is among the winners. working with like-minded companies who and Belgium’s Liege Airport (LGG), plus Most e-commerce players are strategically share our values, our ‘can-do’ attitude, expansion of its activities at Leipzig (LEJ), also focused on Leipzig and Liege as European and are committed to industry standards. developing as an e-commerce hub, notably gateways for cross-border shipments; they We have been able to upscale our ground for Amazon. ABC’s commitment to Liege’s invest in dedicated infrastructure with operations by strengthening or building growing cargo capability includes a 10-year, building of logistics and distribution centres, business relations with trustworthy and €25 million lease agreement on 25,000 sqm cargo terminals, and lobbying for simplified reliable partners, although each undergo of newbuild warehouse premises and the handling and customs procedures. We strict risk assessment prior to signing any creation of a European hub there. feel positive about the future prospects agreement and “are chosen based on their for these destinations, based on our industry compliance and the range of Glushnev says LGG and LEJ have both been customers’ intentions and the airports’ services they offer – to guarantee services for important airports for ABC this year, particularly cargo-friendly approach. There is still room customers from various industries.” given the rise of e-commerce market demand. for improvement, but again, as with other He adds: “We have been gradually strengthening sectors, we have been actively collaborating VDG wider capabilities our positions in both LEJ and LGG, working to guarantee quality performance.” He says at the beginning of the Covid-19 closely with local regulators, customs Challenges operationally pandemic, when there was particularly high

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ABC has seen a two-fold increase this

year in pharma product shipments demand for PPE and medical equipment, leveraging the wider VDG group ” capabilities its ‘Cargo Supermarket’ offering, “we were able to expand the number of commodities and help our customers in delivering medical Cargo carriers will play a vital role for equipment, out-of-gauge sanitising and outdoor disinfecting vehicles, ambulance vehicles onboard our An-124-100 and Il-76TD-90VD aircraft another 2-3 years, as it is expected that – and other sophisticated cargoes which require additional expertise and the transportation industry will be back experience.” to pre-Covid levels by 2023-2024

That group capability is expected to be increasingly used to find synergies ” between the activities of Volga-Dnepr Group’s three airlines, in order to Nikolay Glushnev optimise efficiencies and generate extra services and business. Higher fleet utilisation New digital initiatives Among the successes this year has been an improvement in ABC’s Meanwhile, Covid-19 and the associated lockdowns and behavioural fleet utilisation, “despite the pandemic and disruption of the changes have “served as a trigger for digitalisation” for air freight scheduled network”, to 14-15 flight hours per day for each freighter. providers as well as their end users, “and we have seen a number of “We have also enhanced fleet reliability,” Glushnev notes initiatives being introduced across the industry”, Glushnev notes. From ABC’s side, the carrier has aimed to enhance the “customer That fleet has grown this year to 18, with the company’s first Boeing journey experience, through user-friendly online booking solutions and 777F joining the 17 Boeing 747 freighters it had at the end of 2019. e-services via websites and partners’ platforms”. Despite the current strong demand for freighter capacity, ABC’s Glushnev adds: “The ‘work-from-home’ environment brought fleet growth plans for next year and beyond are relatively modest – additional hurdles as the boundaries between business and private especially given that there had been a reported plan originally to add have been dissolved, and customers expect the similar level of four freighters this year. Negotiations with Boeing about the disputed digitalisation that they get as consumers. We improved our online cancellation of those aircraft are understood to be still taking place. booking tool to facilitate smooth ‘work-from-home’ process for customers, with constant booking confirmations; collaborated with “The plan is to optimise ABC’s fleet, as well as Volga-Dnepr’s, and industry digital booking platforms – WebCargo, cargo.one; fine- utilise it in the most effective manner for our customers’ needs and in tuned our e-services (schedule, track and trace, etc.); extended our line with our internal capabilities – in terms of staff availability, trained MobApp features; and developed advanced schedule updates through and certified crew,” says Glushnev. “We do plan to enlarge the fleet e-mail in auto mode with frequency and other settings adjusted upon next year with one additional B777F, although it is expected to be customers’ needs.” phased in closer to Q4 2021. Beyond 2021, we will expand our wide-

10 CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020

Airline Interview: AirBridgeCargo ”

Beyond 2021, we will And so, what are those expectations for (equipment, vials, injections, etc.), which next year and beyond? are essential for vaccine production; expand our wide-body freighter fleet, deploying “No matter how hard it is to make any forecasts • Station profile across its temperature- one to two annually right now, we think that cargo carriers will play a sensitive facilities and capabilities; to leverage growing vital role for another 2-3 years, as it is expected volumes of our customers that the transportation industry will be back to • Risk assessment of the airports within pre-covid levels by 2023-2024,” Glushnev says. and outside of the existing network; worldwide “This, coupled with the high demand for the ” upcoming vaccine transportation, will create • Workshops with vaccine manufacturers, Nikolay Glushnev additional demand for freighter aircraft and freight forwarders, ground handling dedicated cargo services.” agents, airports, container leasing providers, and other stakeholders; body freighter fleet, deploying one to two Covid-19 vaccine preparations annually to leverage growing volumes of our He adds: “We are now in another phase of • Regular dialogue with governmental, customers worldwide.” the Covid-19 battle and getting ready for global healthcare organisations and Meanwhile, a broader, common VDG the biggest logistics challenge of all times other legal entities; fleet development strategy will focus on – vaccine transportation.” He believes that modernising the fleet, especially its An-124 can only be accomplished fully through a • Industry association membership, and Il76 ramp freighters, and optimising its collaborative approach, describing it as “the including Pharma.Aero; utilisation – “through a partnership approach” responsibility of the whole supply chain with strategic partners. The combined strategy to guarantee vaccine integrity throughout • Use of Validaide risk assessments; involves “using fleet and network connectivity the journey and keep its efficacy”. He adds: options between three carriers within Volga- “We have been shipping vaccines for more • Internal trainings of sales, marketing, Dnepr Group, and gradual expansion of our than five years and know the process very operations and procurement personnel.

widebody fleet”, Glushnev explains. well, although no company in the world ” is experienced to handle such volumes of Given that Covid-19 vaccine transportation is temperature-sensitive cargo simultaneously, “a novel logistics challenge which our industry and we need to coordinate it together with has never experienced before”, Glushnev ABC will not be purely other stakeholders.” notes: “There is a certain degree of uncertainty a scheduled carrier any concerning the conditions which will be more… we offer scheduled ABC and Volga-Dnepr Group, along with other required for Covid-19 vaccine transportation. supply chain stakeholders, are now getting It is expected that some of them might require cargo operations, charter ready for Covid-19 vaccines transport. “While deep-frozen facilities, which is extremely cargo operations and meeting the industry standards with IATA difficult to maintain and creates additional long-term charter CEIV certification – which we successfully hurdles for transportation. Furthermore, re-confirmed last year – we are also taking with Covid-19 vaccines being very fragile and programmes additional steps through a 360-degree delicate, the slightest deviation will mean that approach to embrace all the areas of our the whole batch is ruined. That said, vaccine ” business,” he says. safety and integrity could be achieved through a Nikolay Glushnev strong collaborative approach between airlines, This preparation covers areas including: freight forwarders, airport, GHAs and other stakeholders.” Business model change • temperature mapping of all freighters within the group fleet to understand Accelerated developments The events of this year have also changed which parts of cargo compartments Reflecting on the wider current state of air ABC’s business model. work best for vaccines; freight markets and the sector as a whole, Glushnev believes Covid-19 has heightened “2020 has already taught us a lot, and one • special solutions for the logistics of the focus on three key areas that were thing for sure is that ABC will not be purely temperature-controlled containers after already emerging as the prime areas for a scheduled carrier any more – based on the completion of vaccine transport; future opportunities, concluding: “2020 current market demand, we offer scheduled has served as the trigger for an active cargo operations, charter cargo operations • working under various options for development in healthcare, e-commerce and and long-term charter programmes,” vaccine delivery onboard all types of the high-tech sectors. They will be the growth Glushnev says. “With all the forecasts for Group freighters (B747F, B737F, B777F, drivers not only for the air cargo industry, the next year, our internal calculations and An-124, Il-76); but for most leading economies in the years expectations, we feel confident that this is the to come. We have been sharpening our right strategy to follow, as this will support • Regular shipments of other vaccines, expertise in these areas and are prepared for our customers worldwide.” as well as vaccine-related shipments the logistics challenges which we might face.”

CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 11 GSSA Focus: ECS Group

Finding and selling business opportunities

CAAS talks to Adrien Thominet, CEO of ECS Group, about the impact on cargo GSSA companies of the massive and dramatic changes to the air cargo landscape this year, and identifying new revenue streams for the airlines they represent

ECS’ charter flight PPE shipments from China to Europe were supported by its teams in Germany

12 CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 GSSA Focus: ECS Group

Airlines able to put new solutions in place, such as charter flights and aircraft conversions, are coping better

What have been the main implications solutions via the partnerships we have forged August, we operated over 500 charter flights. for cargo GSSA companies of the massive with the market’s leading platforms. and dramatic changes to the air cargo We also offer our clients the ability to market landscape this year? From an organisational viewpoint, we have put new routes, by creating synergies within in place all possible measures to enable our our sales network but also within our client Our biggest challenge is to find new business teams to work remotely and ensure they are portfolio, including via interline agreements. opportunities for the airlines we represent – as safe as possible. In addition, thanks to the airlines we represent currently almost 140 – against the backdrop via Total Cargo Management (TCM) contracts, of a drastic fall in capacity. We are doing What are the implications to you as a we can use available aircraft from their fleets, everything we can to bring them business, by GSSA – commercially and operationally meaning we have additional capacity and putting together bespoke and unprecedented – of the shift away from belly cargo resources to offer solutions to our clients. operations via charter or passenger-to- capacity towards main deck capacity and freighter flights, to destinations in their cargo-only ‘passenger freighters’? How have you adapted to these changes networks and also by creating new routes. – as an organisation, and in the interests Our global sales network, the synergies that Our business is selling cargo capacity. We are of your airline and forwarder clients? we create between our offices worldwide very responsive and can implement solutions and our client portfolio, allow us to create very quickly. These solutions include charters, Our organisation is focused on sales and these new opportunities and to find business for example. Our TCE (Total Cargo Expertise) operations. Firstly, we have stepped up the solutions all over the world. ops team, based in Germany, is a major coordination that is needed when working asset in this regard. Their expertise allows remotely. Secondly, we have strengthened the Digitalisation also plays a key role, enabling us us to manage all the operational aspects synergies between our offices and ensured to take quick action and to provide solutions in the same way as an airline – including they are in place across the board in order to our clients, as well as to support our QSS (quality, safety and security) customs, to meet new needs and bring new business business and help our sales and operational interlines, track and trace, RFS, loading opportunities. We have also accelerated teams in their everyday work. The tools that supervision, claims, et cetera. An excellent our digitalisation, which we began two years we’ve made available to our teams to help example is the charter flight PPE shipments ago, to support sales and operations. We’ve them manage performance and revenue, from China to Europe put in place from used this time of crisis to emphasise our optimise the pricing strategy, conduct March, thanks to the combined efforts of our digital developments, in particular in terms commercial planning and load optimisation, teams in Germany (TCE and Globe Air Cargo of revenue and performance management and facilitate ad-hoc pricing, all help them Germany) and in China (Globe Air Cargo via our business intelligence tool (Apollo), do these tasks more effectively. To optimise China). Operations such as these take place by rolling out our in-house ad-hoc pricing our sales and increase our sales density, we every day and allow our clients to keep their tool (Quantum), and by training all of our also offer our clients e-booking and e-quote business activities going; between March and employees in digital tools via our in-house

CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 13 GSSA Focus: ECS Group

ECS expects the recovery will be slow, with volumes next year set to remain

similar to those for 2020 e-learning platform (Discovery). ” operational and sales teams have worked tirelessly to put tailor-made operations together, And the most important thing is that we are often at the last minute, for our clients. rolling out new services and new skills to diversify our business and to allow our clients We are rolling out CUSTOMER VERTICALS to outsource more activities and obtain higher yields. These include the entire ops new services to Which customer verticals or national or side, with our Cargo Ops Expertise service, allow our clients regional markets continue to suffer most which includes TCE Germany (all ops aspects from the air cargo capacity constraints including QSS), procurement and the GHA to outsource more currently affecting global markets? Do side. Other services we are rolling out include you see any solutions to that? mail outsourcing and consultancy – for both activities and obtain letters and e-commerce parcels – via our What we are seeing is a 13% contraction in the GSA Mail Solutions entity. There is also our higher yields global air cargo market in September 2020 Cargo Revenue Optimisation service, which (the latest figures available at the time of includes commercial planning and pricing, responding) compared to the same period last and of course performance management ” year (weight), and therefore an improvement and analysis. And thanks to our Cargo Digital Adrien Thominet compared to August, in particular for Europe, Factory, we offer digital solutions to our North America and Asia Pacific. But these clients – e-booking, track and trace, business How do your volumes, revenues and are also the regions that are experiencing the intelligence, etc. profitability this year compare with greatest falls in volume when you compare the last year? June-September period to the same period in All of this allows us to set up bespoke the previous year, which saw a drop of around operations for our clients and to be a real We’re outpacing the market trend. In short, 20% in volume transported. business finder and business facilitator for them despite the unprecedented conditions, our

14 CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 CAAS Report: A new normal? GSSA Focus: ECS Group

One of the greatest challenges that has main forwarders. On our end, we can offer wave, our GSH team in Paris organised a 24/7 emerged from this crisis lies in increasing yields, our freight forwarder clients temperature- schedule to be able to meet demand. as these are the cause of disruption to the controlled solutions via our Total Cargo ” transport costs faced by shippers and importers Expertise entity (dedicated cooling/heating (+38.5% charges globally, YoY, in September service), in particular via the airlines we 2020 vs September 2019. Source: IATA). represent under TCM contracts. GHAs now have

Solutions involve creating opportunities and We have, therefore, created a comprehensive significant activity launching tailor-made operations, including and worldwide offering of solutions, in by creating new routes to maximise synergies particular via passenger-to-freighter flights volumes with the between our clients and minimise the impact and highly specific procedures. But the fact of decreases in capacity. remains that the entire logistics chain still sharp increase in isn’t clearly defined, and laboratories haven’t charter flights, Which customer verticals and/or national confirmed the conditions in which vaccines or regional markets, if any, are benefiting need to be transported. For example, it but they are not from crisis? What are you doing to appears that the latest vaccine from Pfizer capitalise on that? needs to be transported at -80°C, which benefiting from is impossible via air freight. We are doing The impact on our industry’s activity everything we can to be ready, but there are the increase in is unprecedented – and not just in the still a lot of unknowns. short term; returning to a situation that is transport costs equivalent to the way things were before SUPPLY AND DEMAND OUTLOOK COVID-19 will be a very long process. ” Adrien Thominet However, it’s full-freighter operators that will Most passenger airlines are obviously come out on top. anticipating significantly reduced Has your involvement in air cargo passenger airline operations next year, handling changed significantly this year For our part, we have decided to rely on our and likely for several years. How do you as a result of the COVID-19 challenges? strengths and our values to move forward see the supply and demand situation How do you see that involvement together. We are also making progress most likely developing next year? evolving? together by working in different ways, by seeing digital as a source of help and support The recovery will be slow, and volumes look Handling isn’t our core business but we in our daily work. We use our knowledge to set to remain similar to those for this year. But have these skills within the group through benefit our clients, for example by operating the approximately 20-30% loss in capacity will our subsidiaries GSH in France, AirLog in passenger-to-freighter flights with our TCM not result in disruption because over-capacity Italy, and Atlantis/ACI in Canada. We are airlines that were able to convert their previously stood at more than 30%. This currently seeing a period of intense activity aircraft. In other words, we are capitalizing on doesn’t stop those airlines that were primarily with charters and passenger-to-freighter our values and on our expertise to emerge focused on passenger activities from suffering flights, which is making up for a fall in from this crisis alongside our clients. greatly from the many flight restrictions, traditional activities. and that’s why many of them are currently How involved have you been in any reorganising their cargo division to step up Do you see any potential significant preparations for possible vaccine their offering in this business area. casualties if the current constrained transport next year? Do GSSAs have capacity continues for much of next any particular role or responsibility in With passenger airlines obviously year? preparing for that? among the major losers of this year’s crisis, and cargo airlines benefiting Yes, of course. Even if prices rise as capacity As a GSSA, we sell all kinds of cargo capacity currently, which other sections of the air falls, in keeping with the principle of supply on behalf of our clients, whether they are logistics chain are particularly suffering and demand, it won’t compensate for the dedicated to general cargo or specific from or benefiting from the current lack of earnings that has resulted from these shipments. Via our portfolio of airlines, and environment? drastic falls in capacity. The major risk, of in particular that of our TCM airlines, we will course, is bankruptcy for certain airlines and be capable of supporting the distribution of Airlines that were able to put new solutions cash constraints for all. vaccines, as we do in other special time- in place, such as charter flights and aircraft critical circumstances that require specialist conversions, are coping better than those Are cargo GSSAs among the winners or aircraft and specific routes. that were not able to do so. GHAs now have losers of this year’s crisis? significant activity volumes with the sharp Airlines are currently preparing their offerings increase in charter flights, but they are not The air cargo industry is a hugely in line with local authorities in each country, benefiting from the increase in transport interdependent ecosystem, and if your which are coordinating orders and the costs. For example, at the height of the first partners and clients are in difficulty, then

16 CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020

GSSA Focus: ECS Group

you are too. At ECS Group, we are doing a much larger volume of data and it simplifies everything we can to support our clients; our their day-to-day work. The speed and reliability teams in the field, both sales and operations, of the tools that we make available to them make are working tirelessly and giving 100% so they a valuable contribution to the business. These can keep on bringing business to our clients. tools were created by our Cargo Digital Factory We are playing our role as a business finder and as such are perfectly designed to meet the and a seller within the industry by finding specific needs of our business. They are: Apollo, our clients new sources of revenue and new our business intelligence and reporting system; business opportunities (marketing new routes Pathfinder, our tracking system; and more and setting up charter and passenger-to- recently, Quantum, our in-house ad-hoc pricing freighter operations). We are neither winners support system. nor losers, but we are fighters – fighting to adapt ourselves and to keep supporting our It’s these tools that mean our clients can, for customers as best we can. example, benefit from the services of our Cargo Revenue Optimisation department, which is More than ever, air cargo needs to stand focused on performance management and united to overcome this crisis, and all revenue maximisation, via commercial planning, stakeholders are fully aware that alone, they pricing, analysis, and real-time reporting and are nothing. That’s our philosophy at ECS decision-making support systems. Group – we move forward together and we leave no-one behind. This is what allows us to This is also what our clients are looking have such a powerful sales network (1200+ for. Thanks to our accelerated process of employees across 155 offices in 50 countries). digitalisation, which has taken place primarily To tackle this crisis and emerge from it through training and change management (we stronger, we are also expanding our service have launched our in-house e-learning platform, solutions, because airlines will have greater Discovery, which gives all of our employees need of outsourcing solutions. access to some fifteen online courses), we are able to meet these requirements. MODERNISATION OR DIGITALISATION INITIATIVES Where do you see your role as a GSSA in terms of participating in or initiating Have you accelerated, stepped back modernisation or digitalisation initiatives? “We are playing from, or maintained any significant modernisation or digitalisation initiatives Human expertise is crucial in our industry: to our role as a as a result of the challenges this year, or understand the specific and unique needs of seen your clients doing so? each airline, human analysis is irreplaceable. business finder It’s our field teams who find new business and seller – finding We have accelerated our digitalisation strategy, opportunities for our clients – whether it’s which we have been rolling out for several marketing new routes, setting up charter our clients new years now. Demand is high because our operations, or simply our ability to load holds, industry has a significant delay to make up, and it’s all down to our employees. In the same sources of revenue the crisis has exacerbated this gap between way, our recently launched Freight Forwarders our industry and others. It isn’t that our core programme enables us to find solutions and new business business is changing – we are a GSA, and our for our forwarder clients to allow them to priority is sales. Instead, the idea is to give our transport cargo – as well as to help our airlines opportunities” field teams the tools they need and to optimise that don’t have the critical mass to insource a their processes to allow them to perform even partnerships department, to ensure they can better and even more effectively than they continue to sell capacity in the long term. already do. They are unrivalled experts in their business lines and their markets. No machine However, human expertise can be made and no artificial intelligence could replace this simpler and easier using digital tools. That’s expertise, and that’s not the goal. why we’ve gone digital over the last two years – so we can keep pace with and anticipate the What digital brings to our employees is industry’s changes in this regard and offer greater efficiency, more fluidity and improved our clients bespoke solutions. For example, by performance, because it allows them to process working with e-booking and e-quote platforms,

18 CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 GSSA Focus: ECS Group

we can offer clients the ability to optimise their with that of airlines. As a result, we are able buying and selling processes and to increase to meet all of their cargo activity outsourcing their visibility to increase sales. By working needs, either in their entirety (via a TCM ” with load optimisation tools, our teams can contract) or on a custom basis, with each offer our clients more capacity and better load service able to be outsourced independently. factors. Thanks to our in-house ad-hoc pricing This includes all of the sales aspects, of course, tool, our employees can issue quotes more as well as ops activities, which can be fully or Digital tech is a way quickly and make sure that our clients get the partly delegated – in particular QSS. of helping us in our fairest price. Another important focus for us is diversifying our service offering and role as a business Digital tech is therefore a way of supporting investing in new skills and new business lines the business and of helping us in our role as that complement our activity as a GSSA. finder, to generate a business finder, to generate new sources of For example, we offer airlines the ability new sources of revenue and increase sales for our clients. to delegate full data entry to us. Another example of new outsourcing solutions is our revenue and increase In addition, as a GSA, we are a fervent recent launch of GSA Mail Solutions, a new sales for our clients promoter of digital solutions, because we entity that offers comprehensive sales and can reach all of our forwarder clients via our operations outsourcing solutions to airlines portfolio of airline clients. for postal and e-commerce traffic, as well ” as bespoke EDI solutions. This allows us Adrien Thominet OTHER DEVELOPMENTS AND to create new yield opportunities for our INITIATIVES clients, while also ensuring that a booming sector – linked to the growth in B2C and C2C We have built our organisation to be aligned flows – is secured in the long term.

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CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 19 Technology and the warehouse

The augmented shed

Alex Labonne, Chief Technology Officer at Hermes Logistics Technologies (HLT), highlights the latest emerging tech developments promising to enhance efficiencies within air cargo handling facilities and to their landside and airside interfaces

What are the most significant of their data and events. The quantification line through better cost prediction, perhaps technological developments in and of the gains is still somewhat empirical but dynamic pricing, driving creative digital around the air cargo handling warehouse getting more precise by the day. Hermes is products of the like of instant track and trace in the last couple of years? actively pushing its customers to explore their with predicted milestones. data and events through ‘datalakes’-based We have seen a lot of companies pushing for products conducive to AI that will bring real What are the main customer pressures in-warehouse automation and robotisation, efficiency results in the near future. and motivations driving these changes? which for us means stronger integration. This Is the growth in e-commerce traffic and has pushed HLT to get better at partnering How do you see this developing next pharma traffic leading to any significant with third parties, so far designing and year and beyond? changes to customer needs? trialling some concepts – AR (augmented The hardware and robotisation endeavours reality) glasses, Bluetooth tags, drones). What will keep developing very slowly due to the The customer seeks to increase efficiencies is more prominent, though, is the use of data, level of investment required and Hermes will and pinpoint areas of improvement in order a software approach to automation via the respond through its integration strategy. But to compete better. E-commerce and special use of artificial intelligence. With a veritable the software improvements are accelerating cargo such as pharma benefit from a better push for live projects, the customers have at great pace and I foresee major predictive handling of relevant events, providing direct gained a better understanding of the value modelling with direct impacts on the bottom control and recovery with high level of

20 CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 Technology and the warehouse

Dnata has gone live with Hermes 5 at six airports across Australia

Dnata and Hermes start AI cargo efficiencies, costs, and new services”. handling trials Alex Labonne, Chief Technology Officer Artificial Intelligence algorithms will at HLT, said: “Machine learning is part of analyse data generated by Dnata’s air HLT’s digital agenda and our data lakes cargo handling activity in order to develop are a fantastic source of events and data, predictive business analytics models to which are always up to date and ready to improve efficiencies, costs and services inform and train AI models in the Hermes Cloud. Successfully trained models will Hermes Logistics Technologies (HLT) is form new predictive functionalities for precision. So far, e-commerce has suffered working with Dnata and researchers at the Dnata and help them refine an already from the lack of granularity as many cargo IT University of Copenhagen to explore competitive cargo handling offering.” handling systems are too coarse in terms new machine-learning models aimed at of the level of entities treated within their delivering predictive business analytics Dnata recently went live with HLT’s H5 core (e.g. AWB-level view, but no detailed for the air cargo handling operator and Cargo Management System at six airports piece-level view). This is where the hardware improving efficiencies, costs and services. across Australia in Melbourne, Sydney, investment (Bluetooth tags, RFID tagging, Adelaide, Darwin, Perth, and Brisbane. automatic piece location and processing The artificial intelligence (AI) algorithms detection) will come to its own; but again, it will run data from Dnata Australia’s Terence Yong, Cargo Development Director is a slower road due to the level of CAPEX air cargo handling activities. This will for Asia Pacific at Dnata, commented: required. be managed and recorded via the new “Dnata is looking forward to using Hermes Digital Ecosystem that Dnata has predictive modelling to enhance our COVID-19 COMPLICATIONS deployed within its air cargo handling cargo planning and operational processes. operations, which includes a full ‘data This data science not only benefits our To what extent has COVID-19 changed lake’ infrastructure that captures and interaction with customer airlines, it the landscape – in terms of customer stores all of Dnata’s Hermes New enables us to anticipate the demand priorities and needs regarding Generation Business Intelligence events. patterns in advance for more efficient technology in and around the air cargo operations.” warehouse? The partners said the machine learning models will enable the Dubai- Hermes said the Dnata machine learning COVID has had a dividing effect – for example, headquartered global air cargo handling prototype is part of HLT’s digital agenda airlines have suffered a huge downward specialist “to make predictive business to deliver value added services using Big hit and their cargo arm has had to follow process decisions providing key insights on Data analytics.

CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 21 Technology and the warehouse

suit in terms of digital investments. Other warehouse environment? cargo handlers recovered quicker; some do not suffer as much. Some large networks This is where the community systems have have pushed their digital investment in a come into their own – the main software view to seize more market share; others providers in that space have invested well have remained more sheepish and kept to to provide accessibility to functions as slot stringent cost control. booking, trucking etc. Hermes already has a self-check-in product but is also pushing to To what extent have you been involved integrate to existing community systems or in airport cargo community initiatives? other self-check-in products. The digital pre- Has COVID significantly accelerated or arrival information growth is encouraged by decelerated any of these initiatives? community systems, and its integration with cargo management systems. Hermes has accelerated its digital agenda with the more daring customers and the How about the growth of so-called smart rewards will materialise in 2021. Hermes ULDs? has jumped on quick wins first by providing strong track and trace capabilities and Smart ULDs are slowly but surely becoming pushing its integration strategy, as well as a cornerstone of the digital agenda. They are partnering with community systems. These “so called” perhaps in the sense that there is community systems, however, have to round a hardware interface often required, again, up entire airports to be of value; and whilst prompting a heavier upfront investment. ” the customer base is wide, the sale process is sometime complex and politically tortuous. To what extent are initiatives like IATA’s Hermes and its community systems third ONE Record significant in your plans and parties or partners is facilitating the push due developments for the air cargo sector? Smart ULDs to its worldwide sites’ software presence. For Hermes, we always keep an eye on are becoming a DIGITAL PRE-ARRIVAL INFO compatibility standards, and will implement IATA’s protocols and messages; but the digital cornerstone of the Is the growth of digital pre-arrival changes occurring around the world spread digital agenda information, encouraged by slot- far wider than the airline or air cargo realms, booking and technologies and self- with very different and targeted events, data ” check-in kiosks, becoming a significant definitions or protocols. Alex Labonne factor in the ability to digitalise the

22 CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 Technology and the warehouse

BREAKTHROUGH TECHNOLOGIES ‘datalakes’ event stores. We are also pushing for community systems integration and tools

Are there any breakthrough technologies on our Hermes digital ecosystem. Finally, our being developed by you or others, or core product Hermes 5 is seeing more SaaS that you hope can be developed? How do implementations, allowing us to drastically ” you expect them to transform air cargo reduce our customers’ entry costs, whilst handling? providing a fully monitored service with high availability and fantastic elasticity There are some amazing technologies out AI and machine there, from long-range drones, to warehouse What recent successes have you AR glasses. For us, AI and machine learning achieved in terms of recent clients/ learning is a is a software road to efficiency and service customers and projects? Do you have excellence and we are partnering with a any targets or expectations for the software road to university which has data scientists ready to coming year that you can share? define, progress and train models to become efficiency and the next cargo predictive engines of this I can share already our digital agenda service excellence world. with dnata AUS, pushing the highest track and trace standards, machine learning ” Do you plan to launch any new collaboration with data science, fully SaaS Alex Labonne technology or technological based cargo management systems, and improvements for the air cargo handling soon additional digital apps/integrations. warehouse in the coming year? What We have a very busy workstack for 2021 benefits do you expect air cargo handlers with many more of our customers, but to gain from these? nothing I can share at this time.

Our main tech launch this year is the Machine learning engines based on our existing BI

Innovative Cargo Solutions

www.airlogisticsgroup.com

CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 23 Technology and the warehouse Intelligent developments

Walid Khoury, Managing Partner at warehousing technology To what extent has COVID-19 changed specialist ALS Logistic Solutions, says artificial intelligence and the landscape? augmented reality now play a significant role in the logistics of The ‘new’ consumer buying habits are unlikely online retail and must now be applied to enhance productivity in to return to what they once were, even after the air cargo warehouse a vaccine is widely used and life returns to normal. Due to this major change, the growth of e-commerce and its future influence will be far greater than it has ever been. Air cargo is the heart of e-commerce and the upward trend in volumes is seen across the globe. Consumers are demanding faster, better and more cost-effective deliveries than previously known and the only way this can be done is by air. Cargo terminals are not yet being replaced by purely e-commerce terminals, but the separation of volumes is now more evident. Pure e-commerce terminals are on the rise in Europe and Asia.

The cargo growth that was created by the pandemic has largely occurred due to the e-commerce rush. I believe that there will be a range of positive reactions in the industry and mainly in new e-commerce terminals. Some businesses like pharma, cool chain and online shopping will invest in new facilities to protect their customers and continue to invest in their development to have a cutting edge over the competitor next door. The storage, transfer, sorting and retrieval of cargo between the warehouse and the landside, or vice versa, will increasingly Digitalisation update become fully automated The air cargo business is built around What are the most significant currently available. fast deliveries. For the industry to remain technologies developments introduced competitive, it must digitise all the processes in and around the air cargo handling How do you see this developing next and documentation. The trends are: ONE warehouse in the last couple of years? year and beyond? Record, e-freight and e-AWB to move the industry into a complete paperless operation, The Internet of Things (IoT) is not new any The storage, transfer, sorting and retrieval and as solution providers, we partner with all longer. The link between devices aims to of cargo between the warehouse and the our customers in the supply chain through minimise human involvement and increase landside, or vice versa, will increasingly data sharing to make sure the warehouse the effectiveness of operational processes. become fully automated, with interfaces data helps the process to be able to plan and That is what logistics operations have to the airline and customers. All vehicle deliver on their promises to customers. successfully implemented in their day-to-day movements are guided by the Inventory activities. The IT infrastructure of air cargo Control System without human interface – To what extent are initiatives like IATA’s terminals and high-bay warehousing is fully but with a possibility of operator override in ONE Record or ONE Source significant in based on the principles of IoT. Taking into manual mode in case of an emergency. This is your plans and developments for the air consideration staff availability, high cost successfully implemented in several terminals cargo sector? of equipment and their breakdown, such worldwide, and ALS is working on improving machines as Elevating Transfer Vehicles this process to make the ULD build up semi- IATA’s ONE Source is designed to provide (ETV) and Automated Storage and Retrieval automated, to reduce space and manpower the air cargo industry with a wide range of Systems (ASRS) are built to speed up and requirement. information on infrastructure capabilities effectively operate the material flow inside and the certifications of service providers. the warehouse by using the latest technology COVID-19 This is not new to the industry but was

24 CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020

Technology and the warehouse ”

The storage, transfer, sorting and retrieval of cargo between the warehouse and the landside, or vice versa, will increasingly become fully automated ” Walid Khoury

very much accelerated due to COVID-19 crisis, when shippers of medical supplies and pharmaceuticals’ demand for accurate information for time- and temperature- sensitive shipments was extremely important for the business and industry growth. ONE Source lists critical information on the latest operational details, which are of extreme importance for airlines, cargo facilities, freight forwarders and shippers, etc. We can interface to these platforms with our smart WMS solution to provide accurate information on shipments inside the facilities.

Breakthrough technologies From voice recognition to driverless trucks, SEIZE THE POWER OF DRONE TECHNOLOGY. artificial intelligence definitely sharpens the market and creates more opportunities. AI Drone technology is driving innovation in the supply chain and logistics and augmented reality (AR) have become around the world. Air Canada Cargo and Drone Delivery Canada can help your business harness this revolutionary technology to capture game-changing major game changers when it comes to online opportunities. shopping. The warehousing industry needs to use this and develop similar methods to help Be part of the change. Contact [email protected] the warehouse handler visualise the products or visit aircanada.com/dronesinfo today. that they’re handling – whether it’s a clothing item, pharma product or cosmetics. It will enhance the productivity of the e-commerce centres and reduce the time for more accurate deliveries.

CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 25 Technology and the warehouse

Swissport digital integration eliminates Lepage, Quality Manager at Swissport Cargo Better planning of manpower ‘superpeaks’ at BRU Services. But by allowing trucking companies Having visibility on planned pickups and and freight forwarders to reserve time slots deliveries also makes it easier to organise Integrating Nallian’s slot booking app with for their pickups or deliveries, with slots manpower in line with actual demand. the cargo handler’s digital acceptance made available by the handler according to Lepage noted: “In particular, off peak and process, including its self-registration kiosk his availability, “one of the major benefits is during night shifts, this allows us to better system, has led to significant improvements that we now have visibility on who is coming plan our resources, so we always have the in efficiency and resource planning when”. right amount of staff available to ensure our customers quality service.” Lepage noted: “We still face peak times, Swissport Cargo Services has seen but we have eliminated the so-called Swissport said the slot booking app “is a significant efficiency improvements at its ‘superpeaks’. For example, we’ll still see a very intuitive, easy-to-use system” that Brussels Airport (BRU) operations after lot of activity between 7 and 10.30am, but allowed it to have all users up and running integrating Nallian’s slot booking app with trucks will no longer all show up at 7am “in just a couple of weeks”, adding: “We the cargo handler’s digital acceptance sharp.” are very much looking forward to integrate process, including its self-registration the Slot Booking app with the Freight kiosk system – eliminating the ‘superpeaks’ A smooth, digital acceptance process Management app, which will give us even previously experienced. The acceptance zone has been closed off, more granular visibility on what freight with a priority lane for drivers who arrive will be picked up and delivered when and Nallian said Swissport is the first ground with a booked slot. “Drivers very quickly by whom, and enable us to work in a fully handler at BRU to use the slot booking adopted the system and no longer question pro-active mode. Also, in 2021 we will start app together with a kiosk system for self- the order in which they are being served,” operating from our new warehouse facilities, registration, noting that the introduction of added Lepage. “This has dramatically which will increase our overall capacity slot booking had empowered the ground reduced stress for our acceptance staff.” and means we’ll be able to make more slot handler to reduce peaks in activity, reduce booking gates available.” stress for operational staff, provide better The digital flow of the slot booking app service, and plan staff more efficiently. and kiosk registration system has also Nallian said the integration of Slot Booking accelerated the acceptance process. with its Acceptance and Delivery app Eliminating ‘superpeaks’ Drivers first register at the kiosk, which is “allows drivers to register all steps – with Prior to using slot booking, peak times fully integrated with BRUcloud and the slot time stamps, etc. – at all milestones in the at Swissport’s premises “would equal booking app. They are automatically shown pickup and delivery process, also in the long waiting times, heavy discussions on their booked slot, “significantly reducing warehouse. This involves scanning QR codes whom should be served first, and a lot of admin and paperwork”, Swissport said. when arriving at the gates, when starting to stress for acceptance staff” observed Tom unload, when leaving the docks, etc.”.

26 CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 Temperature excursions are not an option Transporting pharmaceutical products destined for patients worldwide represents an important responsibility. Drawing on the in-depth knowledge of our cool chain experts and on our GDP-certified fleet and hub, we ensure the safe and expedient movement of your high-value temperature sensitive shipments worldwide. Because we believe temperature excursions are not an option! www.cargolux.com | [email protected] | follow us Pharma Focus: Covid-19 Vaccine Delivery

The Oxford-AstraZeneca adenovirus vector

vaccine can be stored at 2-8°C for at least six

months ”

This is not an instance to talk about ‘can we do it’? This is an instance to talk about how we are going to do it ” Robert Coyle

delivery systems, along with the ability to coordinate and maintain the integrity of the vaccine – whether that requires maintenance of deep-frozen or 2-8°C supply chains.

Logistics preparations Robert Coyle, SVP for Pharma Services at global forwarding and logistics group Kuehne + Nagel (KN), says life-science logistics specialists such as KN are involved regularly in vaccine logistics operations that involve maintaining products at ultra-deep-frozen temperatures.

“We handle these types of situations in this pharma healthcare space every day where we are shipping goods around the world at deep- frozen-temperatures, -20°C temperatures, Mission critical and 2-8°C, and normal general cargo,” he explains. For KN, that is through the group’s The success and efficacy of the first Covid-19 vaccines has pharma healthcare division within KN and an heightened the focus on the massive and challenging air logistics acquisition it made in December 2018 in the business QuickSTAT, which manages a lot operation that will be needed to effectively distribute them on a of shipments at ultra-low temperatures, for global, population-wide scale. Will Waters reports example during clinical trials. “So, we do support, for example, several companies in the flu vaccine”, a process that News in recent weeks of the apparent available at scale, the Pfizer-BioNTech vaccine, involves “different time periods, seasonality success and efficacy of the first Covid-19 will need to be maintained at a product in the northern hemisphere, southern vaccines in late-stage clinical trials has been temperature of around -70°C has highlighted hemisphere, where the demand goes up and warmly welcomed around the world and the extent and complexity of that logistics down and you have different temperature has heightened the focus on the logistics challenge. requirements”, Coyle explains. operation that will be needed to effectively distribute it on a global, population-wide Logistics has again been a subject for Clinical trials scale. mainstream discussion amid speculation about In clinical trials, you may have 40,000 or 60,000 Countless freight and logistics companies whether pharma supply chains are ready to participants where you might be handling deep have described the project as “the biggest transport the vaccines in the vast quantities frozen, notes Coyle. “So, what’s different as we ever logistics challenge”. And although there needed at ultra-low temperatures, or even in look forward is really the scale of this effort – are reported to be 11 vaccines currently in 2-8°C supply chains. Although many within the estimated number of doses between 11 and ‘phase 3’ trials and more than 100 other the sector have been working for weeks or 15 billion. And we’re assuming around a 12- to candidate vaccines, requiring a variety of months on solutions, questions have persisted 18-month pandemic response before it would distribution conditions, the expectation about the available capacity of aircraft, move into more of a commercial response.” that one of the first vaccines likely to be warehousing, packaging, dry ice, and last-mile

28 CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 Pharma Focus: Covid-19 Vaccine Delivery

Scale implications Number of doses per pallet With that large-scale distribution requirement, “So, if we talk about 75 million doses, which it is fortunate that so many logistics and air would be equivalent to what they’re estimating freight companies have been building their is needed in Canada, that sounds like a lot; pharma logistics capabilities even prior to but when you break that down to number the emergence of Covid-19, with most now of pallets, the number of doses per pallet accelerating that scale-up. For example, KN has becomes a very critical number.” been in a process since 2018 of doubling the scale of its life sciences business by 2022. That figure varies from company to company. “One company I’m thinking about does “So, in many ways we’re in a really good spot about 136,000 doses on a pallet – so that’s to be able to grow that,” Coyle notes. “We’ll 551 pallets (needed to move those 75 million do our part. There’s going to need to be doses). We do 551 pallets in minutes across our multiple players in this supply chain to make supply chain,” says Coyle. “So, from a number it effective. So, the ministry of health or the standpoint, we feel like we have the capacity.” distributor warehouse out to the patient, we don’t play in that space.” Warehousing constraint

Coyle, who before joining KN spent more than He adds: “I think the one area that is going to 20 years at one of the OEMs at GSK, explains: be probably the most constrained across the “In the typical vaccine supply chain, you have industry is warehousing space at those varying drug substance – which is like your active temperatures. So, we’ve had space available, ingredient – and drug product. So, (for) all the but we’re also building a hub concept. We’ll materials that are needed to make the drug have a hub in the US and in Europe that is ” substance, we’re doing air freight, road logistics, flexible to be able to handle those temperature sea logistics inbound to that drug substance ranges, as the products are released and facility and also providing warehousing. approved – so, everything from -80°C. You’ll hear some of our competitors call these What’s different is From drug substance to drug product ‘freezer farms’.” really the scale of this “Then from drug substance to drug product, Coyle continues: “We’re calling it our Covid-19 typically in the vaccine world that active temperature pods. So, whether that be a effort – the estimated ingredient is moving at deep frozen – because reefer container or a refrigerator, or larger you don’t want any degradation before it refrigeration mechanisms, our hubs are all number of doses becomes part of drug product. So, in all that capable of storing pallets at deep frozen, at between 11 and 15 road, logistics, air logistics, we have capability -20°C, or the traditional 2-8°C capability. at deep frozen, -20°C; 2 to 8°C.” billion “And our part will be from inbound, raw Those ingredients then become finalised and materials to drug substance, all the way to drug ” stabilised in the form of a drug product, within product, shipping that out into the country. Robert Coyle its final packaging. Coyle says most of the And in the countries, it’s going to be handled Covid-19 vaccines are likely to be in a vial. And either from the ministries of health or the one thing that is often misunderstood is that governments, the military, or, in some cases, “those vials can hold one dose, five doses, 10 distributors – like they’ve selected in the US doses, and up to 20 doses”, he notes. with McKesson.”

McKesson to distribute US ‘Operation Warp Speed’ Covid-19 vaccines

US healthcare supply chain management The CDC has an existing contract with health clinics, hospitals, physician offices, specialist McKesson Corporation is expanding McKesson to support distribution as part nursing homes, pharmacies and other care its existing partnership with the Centers for of the CDC’s Vaccines for Children Program facilities. Disease Control (CDC) to support the US (VFC), a contract that includes an option government’s Operation Warp Speed (OWS) for distribution of vaccines in the event of a OWS is a partnership among components of team as a centralised distributor of COVID-19 pandemic. CDC and McKesson collaborated the Department of Health and Human Services vaccines and ancillary supplies needed to similarly in response to the H1N1 pandemic. and the Department of Defense, engaging with administer vaccinations. Vaccines and related private firms and other federal agencies, and supplies will be delivered by McKesson Beyond programmes with the CDC, coordinating among existing HHS-wide efforts and selected industry partners to ‘point- McKesson is the largest seasonal flu vaccine to accelerate the development, manufacturing, of-care’ sites across the country at the US distributor in the US and distributes up to 150 and distribution of COVID-19 vaccines, government’s direction. million doses of vaccines annually to public therapeutics, and diagnostics.

CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 29 Pharma Focus: Covid-19 Vaccine Delivery

Final-mile distribution demand. The shipping of COVID-19 vaccine will A lot of logistics and air freight observers be more complex, but we do not foresee the have talked about the challenge of final-mile same capacity crunch as experienced earlier distribution. Coyle says there are indications this year.” that a lot of that final mile will be handled by the traditional integrators or express parcel That view is echoed by some other freight courier businesses. forwarders, including Neel Jones Shah, global head of air freight at Flexport. “If we take KN does have a final-mile capability within Pfizer for example, for the North American QuickSTAT, including direct to patient audience, the vast majority of the production distribution, and “we can leverage that will be manufactured in the US, which means capability as needed, in the COVID-19 they won’t need to rely on air transport but response” on a limited scale. But under can rely on road transport,” notes Shah. “It will normal circumstances, the final-mile “from the be much easier than air transport, because in-market, warehouse outbound”, is not the of things like dry ice limitations of aircraft – domain of KN’s pharma healthcare division, and the multitude of handoffs in air freight is complicated to coordinate, to make sure “We’re going to do our part – where we’re very everybody is doing things in exactly the right good and have the infrastructure to support way. When you do things by road, typically the it,” Coyle says. pharmaceutical company can be much more in control of every aspect of that move. Nevertheless, in the context of this pandemic, he believes solutions like KN’s Covid-19 “There will still be air transport, of course, but

temperature pods can be part of the in-market it won’t be to the extent where every vaccine solution. “We are getting a lot of requests is going to have to wind up on an aeroplane in ” from governments today,” he says, including order to get to a distribution facility.” “putting these temperature pods in conference centres, festival areas, into our existing general Dameme’s colleague at DB Schenker, SVP cargo warehouse space, so that there’s extra of Global Revenue Management Air Freight Intra-regional distribution capacity”, including from “some countries Christoph Hemmann, notes: “It appears right south of the US, countries in Europe, that now that the expected (air) capacity is less of a will offset much of the long- are all very interested in having the ability to challenge than initially considered. We expect haul air cargo demand. store the different products that come in for vaccines to be produced throughout several COVID-19”. months, which will rather lead to a continuous The shipping of COVID-19 demand for capacity solutions instead of a vaccine will be more He adds: “That capacity to store is going large one-time wave. to be very critical, depending on how the complex, but we do not governments set up their distribution.” “The largest challenges are expected not foresee the same capacity necessarily during the air freight transportation crunch as experienced The air capacity challenge itself, but in the final-mile distribution. Capacity is rather critical regarding storage and last- earlier this year Other challenges under discussion have mile solutions due to current infrastructure included the availability of air capacity. limitations – even in modern economies and developed countries.” ” Veronique Dameme, Head of DB Schenker’s Mads Ravn Global Healthcare Market Vertical, said DB 1,000 dedicated flights needed Schenker had “committed very early to secure additional capacities for Covid-19 vaccine Coyle also does not expect flight capacity to be transports whenever they are needed”. such a major problem – particularly because This includes leveraging existing capabilities of the number of passenger aircraft that are and the transfer of knowledge from other not currently flying. “We are actively having parts of the DB Schenker organisation, such conversations with all of our relationships, to as AOG or ‘control tower’ capabilities. “In ensure that we will have enough capacity ready general, and as it is a matter of ‘survival’ for a to go, to be able to handle this influx,” he says number of airlines, we have experienced great cooperation and flexibility from the airlines,” He also believes initial calculations that the she highlights. vaccine transport would require something like 8,000 cargo flights were an overestimate. Mads Ravn, EVP and Global Head of Air Freight “From our estimates, as you equate the at forwarder DSV Panalpina, commented: number of doses into supply chain language “Unlike PPE and the extreme surge for air – especially the products that are coming capacity in the second quarter of 2020, the out at 2-8°C – if you look at flights needed COVID-19 vaccine will be produced more assuming the product is a 2-8°C, and if we put locally, and as such intra-regional distribution 70 tonnes on a freighter, you’re talking about will offset much of the long-haul air cargo 1,000 flights.

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For the North American audience, the vast majority of the production will be manufactured in the US, which means they won’t need to rely on air transport ” Neel Jones Shah

several years have been accelerated so independently maintaining that temperature “Some people have estimated a lot more, and much, he says we are initially seeing some for several days. I think those estimates come if you’re talking of the stability characteristics of clinical deep frozen, where there are limitations on products – which can require their storage at Product temperature vs transport dry ice capacity on a plane; or, some of those temperatures from -196°C to -80°C, to -20°C – temperature estimates were in the early days, when they moving into their commercial product stages. Nathan De Valck, Chair of the air freight didn’t realise a vial could hold more than one pharma quality organisation Pharma.Aero dose.” Product characteristics and requirements and Head of Cargo Product and Network change Development at Brussels Airport Company, Information still emerging says: “Some of the other vaccines that are He continues: “As the knowledge of the “We’re predicting that there’s going to be in the pipeline and being developed have pharma, healthcare and vaccine space starts several phases of this commercial deployment higher temperatures. So, I think the Pfizer to come out, and with more real end products and, in phase one, we’ll have a lot of these temperature is going to be the exception.” – and understanding the amount of doses variations on the different temperatures. And that can sit on a pallet – then you can start as companies continue to do their storage to equate: how is this going to work, and is and distribution stability testing, we may He continues: “There will be some others logistics really going to be the bottleneck? see some of the product characteristics and that require below-zero temperatures. But Or is the ability to manufacture the volume requirements change.” some of the others being developed will be at going to be the bottleneck? And that’s going normal vaccine temperature, between 2° and to be an interesting one to watch.” Coyle says Although the Pfizer vaccine reportedly needs 8°C, because they’ll be more stable, because you would have to go into each company to to be transported and stored at a ‘product the manufacturers will take some more time ascertain the answer to that question. temperature’ of -70°C, several reports indicate to develop them, to test them, to get some that the shipper themselves, Pfizer, will pack its more stability data. So, I think the fear we had But because clinical trials that usually take vaccine in specially designed boxes capable of a couple of months ago of all these billions

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Pharma Focus: Covid-19 Vaccine Delivery ”

The one area that is going to be probably the most constrained across the industry is warehousing space at those varying temperatures ” Robert Coyle

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of vaccines having to be shipped at -70°C is On the major pharma lanes, he says that 2-8°C ungrounded.” temperature range is fairly standard. “The

He adds: “I don’t want to minimise the effort; thing we have to take care of here is that there I just want to indicate that it will not be is no room for error,” he stresses. “We all know ” impossible for the industry.” that in the air cargo supply chain, there are temperature deviations from time to time, Product temperature vs transport because it is really difficult to maintain that. Some of the other vaccines temperature With the Covid vaccines, we will not have that manoeuvrability. These vaccines will need to that are in the pipeline Explaining the difference between product be kept stable, so there cannot be variation. have higher temperatures. temperature and transport temperature, De That, and the very big volumes, will be the big Valck says: “The product temperature is the challenges.” So, I think the Pfizer inside of the box temperature, where the temperature is going to be vaccine sits, and the indications are that Pfizer He continues: “No one knows exactly from has been developing a box where the vaccine where to where they wanted to be shipped. the exception sits inside the box, or a box within a box But it is clear that there will be considerable solution, and using dry ice it can be maintained volumes by air, and that’s a challenge. ” at -70°C for several days – as long as the Nathan De Valck outside of the box transport temperature is “I think the airlines and freight forwarders and kept up between 2° and 8°C. So that makes it airports that have been specialising in pharma manageable for our industry.” transport, they will be very well-prepared. Those that were not really ready at the start of No room for error this year will have a hard time. But if we have a

36 CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020

Pharma Focus: Covid-19 Vaccine Delivery ”

I think the fear we had a couple of months ago of all these billions of vaccines having to be shipped at -70°C is ungrounded ” Nathan De Valck

good starting point, for example at BRU, we are in central Africa, for example, to look at how in a good position.” they will keep that transport stable at 2-8°C – and not just at the airside transport, but also Vaccine task force the last mile. I think that is a big challenge for And those that continue with the actions they forwarders and shippers: to find those end-to- have been taking in recent weeks, for example end solutions.” those participating in the BRUcargo task force, “will be even in a better place in a couple of He says these packaging solutions are being weeks to start shipping these vaccines. It’s a tested, so it is currently still unclear how long matter of good preparation, aligning all the they will be up to keep a vaccine stable at stakeholders in the cool chain, aligning the around -70° Celsius, and the tolerance of that procedures, making sure there is some visibility packaging solution to temperature changes in the process, that there is data sharing, that outside of that packaging. there is good infrastructure in place; and we’ll be up to handle it”. “I can only assume, knowing what type of technology they are using, that a small De Valck adds: “I think the challenge will be deviation of the couple of minutes a little bit harder for some airports in more remote outside of the temperature range will probably locations in less developed places in the not have a big impact,” notes De Valck. “But world with less specialised or sophisticated if you have a shipment out on the tarmac in facilities, because the vaccine will have to travel very high temperatures, then you would feel virtually everywhere in the world. Forwarders that would have a big impact on the product and shippers will be looking at destinations temperature.”

CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 37 Advertising Feature - Moscow Cargo

Cats and dogs bring a surprise rise in AVI cargo Moscow Cargo has handled 2.5 times more shipments of live animals from June to October 2020 than in the same period last year, despite the overall negative impact of the coronavirus pandemic on global air cargo markets

Despite the overall negative impact of According to WorldACD, a decrease in AVI pandemic volume by 12% and rose over 20% in the coronavirus pandemic on the global air traffic was only observed in the first two September-October against 2019. air cargo market, not all cargo types are months of a sharp drop in international air And that was in the midst of numerous facing a slowdown. Interestingly enough, travel – in April-May 2020 the number of restrictions and bans on AVI shipping, imposed the growth drivers include both predictable pets transported by air almost halved (-43% because of COVID-19 – both by some airlines cargo categories – such as medical goods, compared to the same period in 2019). and state regulatory bodies of certain countries. which are highly demanded in an epidemic, However, as soon as the market adapted to It is against this background that AVI volumes or electronic devices (tablets, smartphones, the new realities – by learning to operate among airlines that maintain full-scale pet air etc.), which are increasingly needed in self- with unstable charter schedules, by launching shipping have seen soaring growth. isolation – and unexpected cargo types. The cargo-only flights and coping with the first mass latter contain live animals (AVI) shipping, transportation of medical goods – the demand In particular, Moscow Cargo – an airfreight which has shown explosive growth in recent for AVI shipment recovered. In July 2020, AVI terminal at Sheremetyevo International Airport months compared to last year. global air traffic already exceeded its pre- (Moscow, Russia) which handles, among others,

38 CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 Advertising Feature - Moscow Cargo

the flights of Russia’s flag carrier PJSC Aeroflot – shipped 2.5 times more animals from June to October 2020 than in the same period last year.

It should be said that even with vast experience in special cargo handling, it turned out to be a real challenge for both the ground handling operator and the airline to send several hundred cats and dogs on one flight. To effectively handle such freight, Moscow Cargo and Aeroflot have worked together to develop special interaction guidelines.

The guidelines primarily set a specific day of the week for a consolidated shipment of large AVI cargoes to reduce the time spent by pets at the terminal in unfamiliar territory and conditions. So now, Moscow Cargo accepts from 200 to500 cats and dogs on Thursdays. On these days, the warehouse looks more like a pet show than a cargo terminal.

Moscow Cargo specialists have designed a special multi-tiered rack to build up pet carriers on the air pallet. In addition, obligatory presence of an airline representative has been agreed on with the carrier during the build-up on the “cat” flights to promptly resolve emerging issues.

The “cat” flights were nicknamed so by Moscow Cargo employees after they had shipped an Aeroflot flight to Bangkok with 306 cats on board.

It is to be noted that both the airline and the ground handling operator pay considerable attention to the preparation of such flights. The carrier strives to arrange booking in such a way as to alternate between flights with cats and those with dogs. The Moscow Cargo Operations Department carefully plans the build-up of pet carriers on the pallet as well as the placement of pallets on board the aircraft, ensuring enough distance between conflicting animals. Ramp transportation requires a special been delivered to the terminal to the moment after the disruption of regular passenger air focus, particularly now when air temperatures it has been loaded on board the aircraft, and traffic, is a flight cancellation or rescheduling. have dropped below zero in Moscow. Pets to make sure the pets are safe through all In such cases, Moscow shippers pick up the are delivered alongside the aircraft in special the stages at the cargo terminal. The working pets to return them for the next flight, whereas vehicles to provide comfortable conditions. group experts were pleasantly surprised to the situation is far more complex for animals see the comfortable conditions the terminal whose shippers come from other Russian To meet the shippers’ requirements to the provides for pets: soundproof accommodation cities. With a growing demand for shipping fullest extent, Aeroflot organized an AVI with temperature control and air conditioning, from Sheremetyevo, there is a need for a full- transportation working group in September together with friendly and responsible staff of fledged pet hotel at the airport. Sheremetyevo 2020 made up of airline specialists, animal rights the terminal who efficiently process documents International Airport is currently assessing the activists, and breeding nursery owners. In early and facilitate all related procedures. investments required along with the feasibility November 2020, the group members visited of providing such a service to the customers. As Moscow Cargo to see with their own eyes the One of the biggest problems about sending AVI for Moscow Cargo, the ground handling agent entire journey of a pet cage from when it has cargoes, which has become particularly acute plans to become CEIV AVI certified in 2021.

CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 39 Pharma Focus: Covid-19 Vaccine Delivery

Global delivery plan for the Oxford-AstraZeneca vaccine

AstraZeneca vaccine trials have further expected to still go ahead on a massive scale. Moderna vaccine example reinforced this expectation that the need for The expectation that the Pfizer vaccine ultra-low deep-freeze product temperatures Given the challenges of last-mile delivery of a temperature requirements will be the is likely to be the exception, not the rule. Pfizer vaccine requiring maintenance at -70°C, exception rather than the norm were The vaccine can be stored, transported and indications that Pfizer may use the big global reinforced by the findings of the Moderna handled at normal refrigerated conditions of express delivery integrators for much of that vaccine trials, the second of the mRNA 2-8°C “for at least six months and administered role seem reasonable, believes De Valck. vaccines to announce highly promising within existing healthcare settings”, the efficacy results from its phase 3 clinical trials. partners said, noting that they are “making “Talking to be shippers personally, the reason Announcing the results in mid-November, rapid progress in manufacturing, with a they want to use the integrators, especially in Moderna president Robert Hoge said his capacity of up to 3 billion doses of the vaccine the first phase, is simply because of the last company had been working very hard on in 2021, on a rolling basis, pending regulatory mile, where they feel that in the current phase, stabilising its product, “to make it more approval”. a lot of freight forwarders are not capable yet deliverable to destination markets unable to of offering a fully integrated service – from guarantee ultra-frozen temperature storage”. Professor Andrew Pollard, Chief Investigator factory to vaccination centre type solution. Hoge noted: “What we are able to do with the of the Oxford Vaccine Trial, said: “We have a vaccine now, which is (store it for up to) six vaccine that is easy to distribute. It is stored “There is no problem airport to airport, months at freezer temperatures of -20°C, and at fridge temperatures, and we can get it to but from the airport to vaccination centre up to 30 days in a refrigerated temperature, every corner of the world. It is already being in the specific country, that is the big issue. 2-8°C, means that you can deliver this manufactured in 10 different sites around the The integrators have their own distribution vaccine into local, in fact rural, GPs and even world to make sure that that can happen.” capabilities last mile in a lot of places, and pharmacies. That means it needs no special they can also guarantee a certain maximum infrastructure and equipment, and hopefully Race against time throughput time – 24 hours or 48 hours or you are going to be able to do broad-based Nevertheless, the battle against Covid-19 and 72 hours – which is not always the case in the vaccination where people are, as opposed to its devastating effects on both people and more fragmented cargo supply chain.” bringing them into centralised vaccination economies is to a significant extent a race clinics.” against time. Therefore, despite the logistical He adds: “I think there is also the challenge challenges of flying and storing and distributing the rest of the air cargo industry has – the Oxford-AstraZeneca vaccine a vaccine that requires ultra-deep-frozen forwarders in this case, and the trucking The preliminary results of the Oxford- temperatures, that logistical operation is companies: to make sure they have this kind of

40 CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020

Pharma Focus: Covid-19 Vaccine Delivery integrated service offering for vaccines where deep frozen, shippers and logistics companies ” they can guarantee the last mile as well.” can create special packaging – much like Pfizer has described. Nevertheless, he believes significant volumes There is the challenge – to of the vaccines will also be handled within the “With dry ice, that packaging would be normal commercial air cargo system. “There validated for a certain period of time, and we have this kind of integrated are, even today, flights being planned on would make sure that time is longer than the service offering for vaccines normal commercial operators,” notes De Valck. route time,” he says. And if, for some reason, where they can guarantee the “So, it will be a mix of integrators and the other the route time was longer, “then you’d have commercial operators.” to re-ice. We’ve been doing re-icing for years last mile as well – at our airports, at our cross docks, in road Sweet spot: 2-8°C logistics.” ” Nathan De Valck Coyle says 2-8°C “is really our sweet spot”, “But for products that don’t have to be kept although he says if a product needs to be kept deep frozen, we have trucks, active containers,

Vaccine preparations for lower-income countries Alongside efforts to develop and be those being provided under the Cold vaccines that have long shelf lives, that manufacture Covid-19 vaccines, and provide Chain Equipment Optimisation Programme are temperature-stable, ideally easy to use access to the vaccines for low and middle- (CCEOP) from Gavi, the Vaccine Alliance. – one dose, or even oral or nasal. But it’s income countries, NGOs and charitable That began in 2016 and was, therefore, not remarkable how quickly this has come, so institutions such as Unicef and Gavi, The specifically designed for Covid vaccines. these vaccines have not been optimised. Vaccine Alliance, have been working with “But obviously this infrastructure will Some still require ultra-cold chain – that’s the World Health Organization’s Covax be hugely important to their rollout,” a storage at -80°C – and that does make it programme – which aims to ensure spokesperson for Gavi told CAAS. more difficult. equitable access to vaccinations for all countries – in order to fine-tune the supply He said Gavi had agreed to support the AstraZeneca vaccine’s advantage chain for the distribution of vaccines. purchasing of more than 65,000 pieces of “The advantage of a vaccine like the cold chain equipment for more than 55,000 AstraZeneca vaccine is it can be stored in a Unicef’s Gian Gandhi told the FT in October different sites used to store or transport normal refrigerator from 2 to 8°C, and so that 65,000 solar cold-chain fridges will vaccines. Two thirds will replace outdated or it is similar to the characteristics of other be in place in lower-income countries broken equipment, while the rest will help vaccines we use in the developing world.” by the end of next year. Gandhi stressed extend cold chain facilities and their output. Therefore, the existing systems can be used that organisations such as Unicef are “not Gavi confirmed that the 65,000 target is for to roll this out. starting from scratch”, noting that Unicef procurement by the end of 2020. has been helping conduct vaccination In terms of timings, he notes: “Where we campaigns for about 2.5 billion doses of Gavi told CAAS that according to its latest are going to have limitations is in the first other vaccines a year. But the Covid-19 figures, “we have procured 48,658 units as and second quarter of 2021. Right now, we campaign could almost double that figure, of September 2020, of which 42,092 units have three vaccines that have fed promising and any successful campaign would have to have been delivered and 33,306 installed”, results outcomes. The fourth, the Russian be phased. with CCEOP now approved for 52 countries. vaccine, has had a very small read out. Most of the other vaccines will not get efficacy Gandhi highlighted a challenge faced in Gavi noted that “these units are for regular results until the first or second quarter of March and April, where the organisation had cold-chain, so storage of between 2-8° 2021, which means a later rollout. to charter its own aircraft to fly vaccines Celsius, which is the storage temperature because of the closure of air services and for the majority of vaccines – including “So, the challenge is going to be how to airports. “Given the volumes that we’re the majority of COVID-19 vaccines in scale up these vaccines, some of which have talking about [now], it may be a viable development. For ultra-cold chain of -80 some logistical difficulties associated with solution, to be able to reach some small degrees, extra equipment would need to be their delivery. But that’s what we’re trying to countries, the São Tomés and Equatorial procured and installed – we’re in discussion deal with now. Guineas,” he added. “It’s what enables the with countries about this issue.” best reach.” “On the AstraZeneca vaccine, it is being Asked about the suitability for delivery produced in multiple different producers Cold Chain Equipment Optimisation in low- and medium-income countries around the world, and some will go faster Programme of the first three vaccine frontrunners, than others, so exactly when those doses Those 65,000 solar cold-chain fridges Gavi CEO Dr Seth Berkley commented: will be available is not yet clear. So, these are highlighted by Unicef are understood to “In an ideal world, we would like to have some of the challenges we are dealing with.”

CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 41 Pharma Focus: Covid-19 Vaccine Delivery

gel-pack solutions” that can keep products things we may see.” “at -20°C or 2-8°C for many hours. We have Holmes: There are plenty of less-well- passive and active solutions in air and road But he says these are not just challenges in connected parts of Asia that lack reliable logistics to be able to handle that.” parts of Africa and elsewhere in the global electricity supplies south, highlighting that there are plenty of less- He continues: “I hear a lot of people talking well-connected parts of Asia that lack reliable about the challenges; we do this day in, day electricity supplies. out. I think the two things that have changed Holmes believes one possible scenario will be are that the evening news is now paying for initial waves of vaccine deliveries to places attention to everything we do, and just the size where the logistics is more easily achievable and scale.” given the temperature requirements of the first vaccines, with harder to reach locations Less-developed countries served later via vaccines with less-demanding And there is also the fact that a majority of the temperature-controlled storage requirements. world’s population is not in Europe and the US. “So, you have got to get products into Africa Cold-store logistics and Latin America and Asia,” notes Coyle. “And Outlining the logistics of providing temporary that’s where I think our Covid-19 temperature cold-store facilities, KN’s Coyle says their pod solution is really going to play a key role – provision could be a single solution or part of a where they may not have even 2-8°C capability. more complex, end-to-end solution. During this pandemic response, (organisations are) not going to have time to build a new “We are looking at everything from locating warehouse and qualify that warehouse.” that pod in one of our warehouses, where

there is security and the people are trained. DB Schenker’s Veronique Dameme highlights We also could put it in a place where we have ” “four major challenges in transporting a to put a fence up and cameras and security Covid-19 vaccine. These are the magnitude of guards and ensure the quality and security the task to transport several billions of doses, aspects of that temperature pod solution as Are we going to see the demanding conditions of certain vaccines well,” he adds. requiring ultra-deep-frozen transportation, governments rush to put up the lack of adequate infrastructure, and the Those temporary pods might be just a shipping cold stores? I think that’s ability to even reach certain remote or hardly reefer container, for example, which would connected parts of the globe.” have the capability of storing something down one of the things we may see to -30°C, or -40°C. “And we are working with On that final-mile distribution, her colleague other vendors that have equipment that’s ” Christoph Hemmann comments: “An basically the same size as a reefer container Christopher Holmes important task will be to set up, for example, that can refrigerate down into deep frozen as vaccination centres or drive-through well,” Coyle adds. “We have road trailers that vaccination programmes with external can do that as well. And then, obviously, 2-8°C high-quality cooling solutions to extend is more plentiful, and that could be reefer- transportation and storage time – which can sized trailer size down to a typical US-size Air side service also be utilised as a contingency plan in case of refrigerator.” Some of these solutions are able to produce any process failure.” At the 32 airports with full re-icing dry ice – which can also be reliably supplied at capabilities, KN also has what it calls Coordination challenge certain airports. its “air side service”. Coyle explains: Christopher Holmes, Managing Director for “Through the organisations that business advisory group IDC Insights Asia- Coyle notes: “So we have 233 (pharma) Pacific – which recently produced a detailed operations. Of these, 95 are CEIV certified, and manage the tarmacs, we’ve been given paper on Covid-19 logistics planning – says within that number, we’ve identified 32 airports access to the tarmacs. And anyone in the capability and expertise exists globally that have full re-icing capabilities; and we are logistics that has played in the pharma in the logistics sector, “but these need to only going to use those airports for the deep- healthcare space knows that the most be coordinated, with not one company or frozen products.” risk is at that tarmac – especially if organisation undertaking or purporting there are delays, or you’re shipping to undertake the complete end-to-end Dry ice limitation goods through warm climates in the distribution”. Flexport’s Neel Jones Shah has concerns that summer. the amount of dry ice that can safely be carried He agrees that the biggest logistical challenges on aircraft could be a significant limiting factor, “So, if you can control the products are likely to be “in the global south and given that “dry ice is the only way to keep a while they’re on the tarmac, then your essentially in-country, in the last mile, as vaccine at -74°C”. For example, he says a typical chances of success are very high. vaccines need to be shipped to hot, far- widebody passenger aircraft such as a B777 is And that’s why we’ve selected our flung locations in underdeveloped parts of only allowed to carry up to about 1,100 kg of 32 airport locations – we know we countries”. That includes “storage at more dry ice, “which means you’re only able to carry have that high visibility on tarmac, to remote and hard-to-reach locations”, he notes, about 8 tonnes of vaccine”, he highlights. reduce any risk of loss.” adding: “Are we going to see governments rush to put up cold stores? I think that’s one of the “If there were no dry ice limitations, or if you

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An important task will be to set up vaccination centres with external high- quality cooling solutions The Oxford-AstraZeneca vaccine is already being manufactured in 10 different sites around the world ” Christoph Hemmann didn’t need dry ice to keep it cold, you could He continues: “The airlines are coming back carry five times that amount of vaccine on to Boeing and Airbus, asking: ‘can we raise the the aircraft, 40 tonnes. So, that gives you an limitation’? And Boeing and Airbus are looking order of magnitude, where there could be to see how much more tolerance is there to a lot of unused capacity when you’re flying increase the amount of dry ice, so that you can an aircraft moving the vaccines around from carry more vaccine.” manufacturing point to distribution point.” ” Coyle emphasises that dry ice only needs to be used if the shipments need to be deep frozen. “So, -60C to -80C. You would not need to have dry ice for -20°C – there are If there were no dry gel pack solutions at that temperature. And you will not need dry ice for 2-8°C. So, you’re ice limitations, you talking about a small number of products that could carry five times need to be deep frozen.” that amount of vaccine With even one of the mRNA leading vaccines candidates – the Moderna vaccine on the aircraft – qualified at -20C, Coyle is only aware of two currently that are likely to need to be ” deep frozen, although he notes that the Neel Jones Shah number of viable candidates keeps changing. “But it’s a small number compared to the whole list of vaccines.”

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His understanding is that a passenger B777 our overall air freight, and about 10% of (total can only handle between 800kg and 1,000 global industry-wide) pharma healthcare kilos of dry ice, but he notes that a B747 (volumes), from 2019 numbers”. freighter can handle up to 11,000 kilos of dry ice, with smaller aircraft able to take He concludes: “This is not an instance to proportionally less. talk about ‘can we do it’? This is an instance to talk about how we are going to do it. And So, he agrees “there are limits and limitations I have at my disposal pretty much every that we have to consider for dry ice”, but asset in this company to pull this off. So, I’m believes the extent of the challenge may be not concerned about overall capacity and less than some had originally feared. commitment.”

A challenge that can be met Nevertheless, he highlights the importance Weighing up all of the logistical challenges of stressing to all of the manufacturers and against the capabilities available, all in all governments that although “we live in an Coyle is confident that it is a challenge that industry that loves perfect data, now is not can be met. the time for perfect data. Now is the time to share often and talk often. We have got to To put it into context, Coyle says the total get out there and connect, because there are volume of Covid-19 vaccines that are forecast many players that have to come together to to be needed to be shipped by air “is less than make this successful, to get it to every human Berkley: Storage at -80°C does make 1% of what we (as an industry) typically do for that needs it.” delivery more difficult

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46 CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 47 Vaccine Logistics: Air Freight Planning

SkyCell and Air France KLM Martinair Cargo have signed a partnership agreement to expand access to SkyCell’s hybrid containers

Urgent delivery

Preparations by airlines, cargo handlers, airports, logistics companies, equipment providers and NGOs for transporting and distributing COVID-19 vaccines have been moving forward rapidly, reports Will Waters

Following a survey in September airport cargo communities, airlines, cargo between. And there was a significant deficit commissioned by TIACA and Pharma.Aero handlers, airports, logistics companies, identified in the number of companies able to to gauge the level of readiness within the air equipment providers and NGOs have been store or transport shipments at deep-frozen or freight sector for the challenge of COVID-19 moving forward rapidly. ultra-deep frozen temperatures down to -80°C. vaccine logistics, the two organisations called for urgent industry collaboration to address “a According to the results of the first ‘Sunrays Positive elements of the results included 20% concerning lack of readiness”. air freight readiness’, completed by airlines, of the respondents stating they were already freight forwarders, ground handlers, airport involved in logistics of COVID-19 vaccines Two months on, much has happened and operators and solution providers, the in clinical trials, and nearly two out of three the two associations have begun preparing a majority of the industry players said they had (65%) reporting that their existing processes follow-up survey to assess how much progress begun making preparations to handle, store, were compliant with clients’ requirements. has been made and where there are still gaps transport and deliver COVID-19 vaccines. Nearly half (49%) said they will introduce in companies’ capabilities and confidence. And However, only 28% of the 181 respondents additional services, and a further 42% said in the meantime, there are lots of anecdotal said they felt well prepared, while 12% felt they may. More than one third (36%) said they indications that preparations by associations, very unprepared, leaving 60% somewhere in will invest in additional physical and/or digital

48 CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 Vaccine Logistics: Air Freight Planning

infrastructure, and a further 41% said they may. Task forces launched are now working together to offer an answer for each scenario.” An application is also under And the majority of the industry players said De Valck’s local cargo community at Brussels development for the BRUcloud digital platform they had begun preparations to handle, store, Airport (BRU) in early October revealed that will make it possible to track the COVID-19 transport and deliver COVID-19 vaccines – some of the work being done by its BRUcure shipment in real time at any moment in the including setting up dedicated teams, engaging Taskforce – building on long-standing transport chain. with partners, mapping and upgrading their collaboration within the cargo community and capabilities, as well as developing new services. with pharma manufacturers, strengthened by Neighbouring Amsterdam Schiphol’s pharma the location of BRU in the heart of Europe’s cargo community has also been collaborating Areas of priority pharma manufacturing cluster. since September to ensure the airport Areas of priority recommended by the community’s temperature-controlled supply partners, on the basis of the study’s findings, The first job of the BRUcure Taskforce, which chain is ready. A taskforce led by Air Cargo include a focus on industry collaboration includes more than 40 air logistics stakeholder Netherlands (ACN), Schiphol Cargo and between pharma and air cargo sectors; organisations, was “to define all of the possible Air France KLM Martinair Cargo, including improving visibility and transparency; building scenarios for the various types of vaccines”, shippers, pharma producers, forwarders, adequate capabilities; getting the support from with each type demanding a different method airlines, ground handlers and trucking regulators to speed up processes and remove of transport, packaging and storage. companies, has been working on up to four cumbersome procedures.

To strengthen industry collaboration, the associations recommend that vaccine manufacturers involve all their air cargo logistics providers as early as possible, including airports and ground handlers. And each air cargo stakeholder should map its existing capabilities at each location and make this information available; dry ice, active containers, trained staff, and cold chain space availability should be secured early; and infrastructure investment decisions should be made as early as possible.

And to improve visibility, the use of tracking and monitoring devices should be encouraged and the approval process for their safe use in flight needs to start as soon as possible; and rollout of digital solutions and data-sharing platforms should be accelerated.

Better prepared now Nathan De Valck, Chairman of Pharma. Aero, observed that companies at the time of the survey were still in the early stages of preparation and there were still a lot of unknowns. Speaking with CAAS in mid- November, he said: “We hope to find a much higher level of preparedness now. Almost everyone (in the original survey) said they wanted to prepare, and 40-50% said they were in the process of preparing but were not there yet. I do think that when the big volumes start to be shipped, probably in February to March, companies will be a lot better prepared.”

He said there were also signs of greater cooperation already in certain areas. “We were possible ‘vaccine scenarios’, based on different already collaborating quite well with BRU and “In addition to temperature sensitivity, there temperature ranges and discussing methods Pharma.Aero. But it has accelerated, not only are quite a few unknown elements, such as of mapping capacity, from ground handlers to on a local level.” For example, the Covid crisis the manufacturing location of the vaccines, airlines, as well as back-up solutions. has also encouraged cooperation between the number of doses per person, the volume associations such as Pharma.Aero and Tiaca, that a cargo pallet with vaccines will occupy Secure trade lanes and with Iata. – taking into account the packaging, and so “I think we are really seeing the industry joining on,” notes BRU’s Samuel Speltdoorn, who is Ferry van der Ent, Director of Business forces and looking to support one another,” heading the Taskforce. “All companies active in Development for Schiphol Cargo, said: “The said De Valck. temperature-sensitive transport at our airport most important thing is to provide a safe,

CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 49 Vaccine Logistics: Air Freight Planning

Swissport has been testing the capabilities of its facilities and processes to handle vaccines cooled to temperatures as low as -70C

secure, and reliable trade lane, especially capacity. This could include pre-warnings and co-ordinate its response. Headed by EVP for when there is a peak in demand, so that we data exchange, as well as increased security innovation Mike Duffy, Project Coldstream can guarantee the vaccines are tamper-free, and strict handover protocols. is working closely with airlines, forwarders with no temperature excursions and handled and logistics providers, government agencies properly. The Dutch Civil Aviation Authority is Community members are also looking at ways and industry organisations such as Pharma. also very supportive in granting permissions to speed up handovers between parties in the Aero and TIACA to “clearly understand the for COVID-19 related ad-hoc flights. cool chain, including last-minute delivery, quick temperature and handling requirements pick-up, and airside delivery or pick up. of the various vaccines”. The group will “We are now focusing on a fast and swift be responsible for “developing in-house handling process on the tarmac, getting the Thinking as a community solutions to the challenge, ensuring the vaccines as soon as possible to the end- Enrica Calonghi, Global Head of preparedness of WFS’ pharma handling customer via the distribution channels, rather Pharmaceutical Logistics at Air France KLM capability, devising plans for additional than storing them at the airport. As a back-up Martinair Cargo, commented: “We need to capacity where needed, and working closely option we have to be prepared to collaborate consider the whole journey, especially the last with WFS’ airline customers”. across all modes and with everyone in the mile and especially for places where it can supply chain and explore all options. be a challenge to get the last mile right. We WFS said its investments in a network of still don’t know the how, the where to, the temperature-controlled pharma handling “That could mean collaborating with other where from, or the when. We have to work facilities at strategic airport locations around Good Distribution Practices (GDP) centres and collaboratively and that is one positive that the world over the past two years means it has facilities and connecting with our colleagues in 2020 has brought us. already earned preferred partner status with ocean, for example at the nearby Amsterdam many of the world’s biggest transporters of and Rotterdam harbours where they have “We should not just think about capacity in the pharmaceuticals and medical devices. GDP-certified cooling areas and lots of air, but also on the ground, from the trucks, to capacity.” the warehouse space, and we have to think as WFS currently operates 12 dedicated pharma a community.” facilities in Amsterdam, Barcelona, Brussels, Cape Collaboration with Customs Town, Copenhagen, Frankfurt, Johannesburg, Key role for cargo handlers London, Madrid, Miami, New York JFK, and its Under the initiative, the community will Cargo handlers have also been making new €10 million state-of-the-art Pharma Centre continue to work closely with Customs and preparations individually, as well as within local at Paris CDG. These facilities are all either IATA governmental bodies to ensure faster Customs community initiatives. CEIV or Good Distribution Practice (GDP) release and priority Customs checks. There will certified or compliant. be a focus on ensuring the proper distribution In October, Worldwide Flight Services (WFS) of storage to guarantee sufficient cool room launched its Project Coldstream taskforce to Duffy said: “Over half of global vaccine doses

50 CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 Vaccine Logistics: Air Freight Planning

WFS currently operates 12 dedicated pharma facilities that are all CEIV or GDP compliant

Air Cargo Handling Systems

are expected to be transported by air cargo because of its speed and reliability, dictated by global demand and the absence of local production facilities in some countries. We are part of an industry-wide solution which is mapping where vaccines are being produced to ensure rapid global vaccine trade flows. We will use all the capabilities we have to deliver and support a consistent and reliable end-to-end handling solution.” SOLVING SOLVING WFS said the transport of COVID vaccines is expected to commence by the end of 2020, YOUR PHARMA reach its peak in the second half of 2021, and YOUR CARGO continue into 2022, noting that countries and HANDLING trading blocs have already ordered over 5 HANDLING billion doses. “Some 65,000 tonnes of vaccine CHALLENGES are forecast to require air cargo transport, plus ancillary hardware and PPE which will be CHALLENGES needed to administer it,” the group said. www.saco.aero Swissport demos vaccine handling Fellow airport cargo handling multinational Swissport has also shared some of its plans for the global distribution of Covid-19 vaccines. Among these plans, Swissport has been putting its facilities and processes to the test, including a “dry-run” demonstration “under AIRPORTSAC EQOUIPMENT real-conditions” at its state-of-the-art Pharma Centre in Brussels of its ability to handle Industrieweg 2 P.O. Box 47 T +31 (0)492 430 059 [email protected] a division of SMA BV temperature-sensitive air cargo cooled to NL-5731 HR Mierlo NL-5730 AA Mierlo F +31 (0)492 432 713 www.saco.aero temperatures as low as -70°C.

CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 51 Vaccine Logistics: Air Freight Planning Cargo Restraint Equipment

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Tony Douglas, Group Chief Executive Officer of Etihad Aviation Group commented: “Etihad Cargo’s role in the consortium will leverage our pharmaceutical logistics expertise and specialised pharma and healthcare service, PharmaLife, the IATA CEIV Pharma-certified product capable of facilitating temperature- sensitive cargo between +25⁰C and -80⁰C.”

SkyCell’s containers The Hope Consortium also highlighted significant progress that is being made on cold-chain vaccine packaging. It intends to transport the vaccines using newly created SkyCell’s hybrid containers, which it said ensure sensitive vaccines are protected even under extreme conditions. “With efficient insulation and cutting-edge cooling technology, the containers maintain steady temperatures for an average of 202 hours (8.4 days) and self- recharge automatically in a cooling chamber or reefer truck,” the partners said. Skycell launches ‘ultra-cold smart container’ Richard Ettl, Chief Executive Officer of SkyCell, commented: “The Hope Consortium has the right partners, infrastructure and service SkyCell, a leading manufacturer of stored in such containers. ecosystem to ensure time- and temperature- data-driven temperature-controlled sensitive transportation in a seamless cool containers for the pharmaceutical “By combining its existing precision- chain operation.” industry, has developed an ultra-cold engineered containers, cooling The consortium said it will also be looking to smart container that it says will ensure technology, and proprietary software, partner with other players and stakeholders to the safe transport of COVID-19 vaccines SkyCell is able to cool to minus 80 improve its offering. around the world, regardless of outside Celsius and utilise full aircraft capacity, temperatures. mitigating the traditional limitations Etihad Cargo’s new PharmaLife product caused by the use of dry ice by making Although Etihad Cargo was one of the first The rapidly developed solution designed energy transfer more efficient,” SkyCell carriers in the Middle East to gain IATA’s Centre for highly temperature-sensitive said. The containers are also equipped of Excellence for Independent Validators Covid-19 vaccines maintains a steady with IoT sensors to measure internal (CEIV) certification for pharmaceutical temperature of -60°C to -80°C for more and ambient temperature as well as logistics, the carrier only launched its PharmaLife specialised pharma and healthcare than 120 hours without recharging, other environmental factors. product in September. enabling up to 1.75 million doses to be transported in a single aircraft – enough Manufacturing of the reusable, ultra- Andre Blech, Head of Operations and Service to vaccinate between 875,000 and cold chain containers will begin in early Delivery at Etihad Cargo, explained: “The 8.75 million people depending on the December, with a fleet of at least 100 to pandemic prompted a reassessment of our vaccine and concentration, and up to 10 be ready in January, SkyCell said. This top-level services to ensure we can address the times the capacity of common existing would deliver capacity to move at least specific requirements for shipping high volumes solutions, the company said. 7 million ultra-cold COVID-19 vaccine of in-demand product in very short timescales. doses per month safely around the To avoid last-minute pressure once a vaccine is approved, we have established a dedicated To date, dry ice has been central to world from the beginning of 2021 – in COVID-19 vaccines workforce composed of a maintaining the ultra-cold temperatures the case of concentrated vaccines, this Steering Committee and a Working Group to that certain pharmaceutical products – could translate to as many as 35 million manage all anticipated elements.” such as the Pfizer/BioNTech COVID-19 patients per month able to receive vaccine – need to be stored at while shots. Available at 54 stations, PharmaLife will they are in transit. The capacity of ultra- focus on key gateways including Abu Dhabi, cold shipments has been significantly SkyCell CEO Richard Ettl commented: Barcelona, Chicago, Paris, Dubai, Frankfurt, limited, especially in aircraft, as a result “With the launch of this ultra-cold smart Hyderabad, London, Milan, Melbourne, of this dependence: only a small amount container, we are now able to transport Mumbai, Shanghai, Singapore, and Sydney. of dry ice can be used per shipment, all of the leading vaccine candidates for Other international airlines and airports have as it can block respiration in large COVID-19, serving both the mass volume also outlined significant major initiatives to quantities and therefore presents a risk 2 to 8°C market and now the important ramp up and their vaccine delivery capabilities to individuals involved in handling cargo market segment of -60°C to -80°C.” and capacity, with some carriers – including

54 CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 Vaccine Logistics: Air Freight Planning

Turkish Cargo and Air France KLM Cargo – revealing in November that they have already begun transporting Covid-19 vaccines. UPS boosts frozen logistics capabilities

UNICEF’s multilateral initiative With the global integrators and their “is causing logistics providers to plan for Meanwhile, in a promising sign of progress specialist pharma logistics units what some analysts fear may be a dry ice being made towards developing coordinated, expected to play a significant role shortage, as pharmaceutical companies multilateral initiatives, the world’s largest single vaccine buyer UNICEF has begun working with in the global vaccine delivery effort, strategize getting hundreds of millions of major global airlines and freight providers to UPS has also announced key service their vaccine doses safely to communities step up efforts to deliver COVID-19 vaccines to enhancements – in particular for around the US and internationally”. over 92 countries around the world as soon as vaccines requiring maintenance of a vaccines become available. product temperature as low as -80°C. UPS is also reported to be building UPS Healthcare has launched a joint two giant freezer farms capable of Together with IATA and the Pan American effort, in collaboration with Stirling super-cooling millions of vials of a Health Organization (PAHO), UNICEF briefed Ultracold, to provide portable ultra-low COVID-19 vaccine. The facilities, under major global airlines in mid-November on the temperature (ULT) freezers. These will construction in Louisville, Kentucky, and expected capacity requirements and discussed ways to transport close to 2 billion doses of be distributed and used in smaller ‘point in Venlo, the Netherlands, near UPS air COVID-19 vaccines in 2021. This is in addition of care’ facilities requiring a solution for hubs, will house a total of 600 deep- to the 1 billion syringes that need to be longer-term freezer storage. UPS said freezers that can each hold 48,000 vials transported by sea freight. it will be working with Stirling to offer of vaccine at temperatures as low as -80 the Stirling ULT25 and Undercounter Celsius (-112 Fahrenheit). That virtual meeting followed shortly after Model SU105 to thermally protect UNICEF’s first virtual logistics event to discuss critical vaccines requiring ultra-low Freezer farms are a standard solution the transport of COVID-19 vaccines, which temperatures ranging anywhere from in the pharmaceutical world, which it described as “a landmark discussion” that -20°C to -80°C. often has storage needs for delicate brought together more than 350 logistics partners, including air freight operators, medical supplies such as blood samples, shipping lines and global logistics associations. UPS Healthcare is also expanding its biological tissue or vaccines for a variety dry ice capacity and can now produce of diseases. UPS and FedEx already Etleva Kadilli, Director of UNICEF’s Supply up to 550kg of dry ice per hour in its had some freezer capacity, but UPS Division, commented: “This invaluable US facilities to support the storage and realized it needed something on a much collaboration will go a long way to ensure that transport of cold chain products. UPS larger scale to handle a sudden swell in enough transport capacity is in place for this said a major spike in demand for dry ice demand for a COVID-19 vaccine. historic and mammoth operation.”

In the coming weeks, UNICEF is also assessing existing transport capacity to identify gaps and Portable ultra-low future requirements. It said the procurement, temperature freezers will delivery and distribution of COVID-19 vaccines be used in smaller ‘point is anticipated to be the largest and fastest such of care’ facilities operation ever undertaken.

UNICEF is leading efforts to procure and deliver vaccines from manufacturers that have agreements with the COVAX Facility. In collaboration with PAHO, UNICEF will coordinate the purchase and delivery for 92 low- and lower middle-income economies “as quickly and securely as possible”.

Last month, UNICEF began a process to stockpile more than 1 billion syringes by 2021 to guarantee initial supply and pre-position in advance of COVID-19 vaccines.

UNICEF normally procures more than 2 billion doses of vaccines annually for routine immunization and outbreak response on behalf of nearly 100 countries, making it a leading global expert in supply chain management of temperature-controlled products.

CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 55 Regional Report: Europe

Handling the capacity challenge

Europe’s airport cargo communities have coped with this year’s rapid changes and extreme volatility by collaborating more closely than ever, reports Will Waters

With the mass cuts of passenger services freighters – ‘preighters’. capacity may be taking place at mixed cargo caused by the pandemic, airports and their and passenger airports where overall cargo operators and service providers in Europe The reformulated environment has put volumes may be down, year-on-year, but – as in other regions – have been forced immense pressure on airports and their individual cargo handlers are still experiencing to respond extremely rapidly to the fast- cargo operators, included upon cargo higher volumes than normal because of changing environment. handlers. And it has also led in many cases increased cargo activities by some of their to an acceleration of cooperation between airline customers. And alongside the collapsing passenger stakeholders, and new types of cooperation. services, cargo operations have adjusted Dearth of warehouse capacity and rebounded rapidly, with higher than One of the many challenges for cargo Robert Fordree, executive vice president for normal levels of freighter activities in many handlers is due to rapidly changing and cargo at air freight handler Menzies Aviation, cases alongside much diminished passenger uneven demand for handling and warehousing explains: “Cargo has been experiencing an operations and the new breed of passenger capacity. That challenge of warehouse increase in volume in many locations and our

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Regional Report: Europe carefully planned and forecasted handling ” volumes per terminal have changed beyond all recognition. This has led in many airports to a dearth of warehouse capacity as some airlines have increased freighter activity and of course increased cargo payloads We have joined forces on aircraft which are carrying virtually with new handling no passengers. We are also seeing some behavioural changes from the market with an partners in some increase in dwell times for cargo within our markets to consolidate facilities as consignees delay the pick-up.” our efforts to support Pockets of challenge the demand in both He continues: “It is pockets of challenge. As an example, depending on the customer mix warehouse and trucking we may have airlines that are not operating at solutions all, so our warehouse is empty. With another handler in the same airport, the carriers that they handle are still flying, they may have increased freighters and they may have pax ” Robert Fordree flights still operating but with a greater cargo payload.”

That may be “because there are no “A bigger increase has been the cargo passengers, therefore no baggage, so a carried on pax flights, either as a planned pax greater lower deck payload opportunity for freighter with cargo also loaded on the seats, cargo; and they will also in some cases use the in the overhead bins or in some cases on the main deck of the pax aircraft, either loading main deck as seats have been removed,” he on the seats and overhead bins or having adds. “Where in the past we can expect 5-8 stripped out the seats they load cargo on the tonnes on an inbound passenger aircraft, we floor. are seeing anything from 15 to 25 tonnes per

flight.” “The overall impact on the airport would be ” cargo volumes slightly below or on a par with Collaboration solutions previous years. The major issue is massive To address the capacity challenges, Fordree underutilisation of one warehouse and says “we have joined forces with new handling massive overutilisation of another, depending partners in some markets to consolidate Where in the past we on the carrier mix.” our efforts to support the demand in both

warehouse and trucking solutions. We have can expect 5-8 tonnes on ” also grown closer to some forwarders as we an inbound passenger work on bespoke solutions for collections and deliveries.” aircraft, we are seeing anything from 15 to 25 The major issue is In terms of overall cargo volumes, Fordree says these are slightly down on 2019, but it tonnes per flight massive underutilisation differs from region to region. “Volumes in of one warehouse and some markets exceed those of the previous year due to significantly increased full and ” massive overutilisation pax freighter schedules, and in others they’re Robert Fordree down as flight schedules have not returned,” of another, depending on he notes. the carrier mix The levels of freighter activities, or all-cargo Different times passenger aircraft flights, are also different At Europe’s largest cargo airport, Frankfurt from market to market. “But we have seen (FRA), in normal times around 40% of freight ” significant increases in freighter activity on a is flown as on passenger aircraft. Following Robert Fordree number of markets,” Fordree notes, including massive falls in passenger air services and AMS and LHR in Europe. belly cargo capacity in the spring, the airport’s cargo volumes have recovered to around the

CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 57

Regional Report: Europe ” same level as last year – “currently even on a higher level than last year, despite the missing belly capacity”, notes Max Conrady, Head of Cargo Infrastructure and Development at The number of Fraport. preighters is rising again Indeed, in October 2020, FRA’s cargo throughput grew by 1.6%, to 182,000 tonnes – exceeding year-on-year levels for the first ” time in 15 months – with cargo-only flights Max Conrady more than compensating for the ongoing capacity constraints for belly freight. The airport attributed this high cargo demand Conrady said adapting to these massive changes “mainly to the upturn in global trade and was completed in only 1-2 weeks and required a the solid performance of the Eurozone’s close cooperation among all partners. industrial sector”. Among the operational challenges earlier Within these figures, there have also been in the crisis, the number of collectors of significant changes in terms of commodity import cargo “increased massively” and types and origin and destination points. many of these were small importers and first-time customers picking up cargo for the Although there has been a rise in most first time. Instead of big trucks, there were commodity types, ‘low-cost’ cargo such as a lot of small vehicles from all over Europe perishables have seen a decline, linked to collecting cargo, with some not picking up the rise in many air freight rates. This is also their goods at weekends – which resulted in reflected in a decline of traffic from Africa waiting times when collecting but also led and Latin-America, which are regions with of shipments towards small, loose packages to corresponding backlogs and overloads a high amount of perishable transports to and a change from mainly export business to on the apron, the transfer areas and in the Europe, while there is a growth of traffic with almost only import business. handling warehouses. North-America and Far East, Conrady notes.

With overall demand for cargo capacity recovering to “extremely high” levels, the Swissport opens new air cargo warehouse at FRA missing capacity due to the grounded Among the developments this autumn, technology and has direct tarmac access. passenger flights has been partially Swissport opened a brand-new air cargo An automated material handling system compensated with higher levels of freighter facility at Frankfurt Airport in September. ensures efficient air cargo handling and aircraft and the use of ‘preighters’. Conrady The 17,000 sqm warehouse with an storage while the FAIR@Link slot booking says as many as 40 airlines are using or integrated Swissport Pharma Centre is app controls the access of trucks and have used their passenger aircraft for cargo equipped with state-of-the-art handling optimises workflows. shipments in recent months.

And the number of freighter movements “is considerably higher than last year, approximately twice as high,” he notes. “Also, the number of preighters is rising again, since the cargo volumes are higher than last year and there is a lack of belly capacity.”

Cargo community cooperation Conrady says that it is thanks to strong cooperation that the FRA cargo community has maintained the flow of goods during what has been an extraordinary crisis this year.

The early months of the crisis were extraordinarily challenging, especially with the huge increase of imported PPE, which led to a major shift in the shape and type

58 CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 If you missed

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LGG has achieved a year-on-year cargo increase of about 20% in the first 10 months

the successful running of the business. months to levels close to last year’s volumes. Situation has stabilised Although total cargo volume for the first “As of now, the situation has stabilised,” says “Our intensive commitment to building a half of 2020 declined by 14.5% compared to Conrady. resilient cargo community has paid off, and 2019, by August volumes were back to 2019 the crisis has connected us even more as a levels. Slipping in September, they recovered

But many of the elements of the increased community.” in October to more than 140,000 tonnes, coordination and communication that was ” around 2.5% below last October’s volumes. essential to get through that period have continued. Those include regular calls with Although an increase in full freighter cargo all partners involved, to make sure everything does not quite make up for the decline in runs smoothly, with securing operations the belly traffic, the numbers of full freighter main focus. The crisis has connected services at AMS has risen steeply since us even more as a April, rising to around twice last year’s Fraport also started conducting a survey and levels between May and August. With some “asked airlines, handling agents, forwarders, community passenger cargo capacity returning since etc. for their experiences to regularly get then, freighter levels have dropped back an overview on what worked and where ” somewhat from their levels this summer but Max Conrady improvements were needed. At the beginning, they remain around 60% higher than last year. the ‘Climate Index’ was published on a weekly basis, now it is published once a month,” It also led to an acceleration of digitalisation While cargo volumes to and from most Conrady says. initiatives – for example, in order to limit regions are similar to last year’s levels, give or physical contacts, meetings have been taking take a few percentage points, Africa volumes Cross-company support place via Microsoft Teams, Conrady notes. were down almost 10% in October. Similar to the cooperation described by Fordree, this included “mutual cross- And despite the new challenging situation at Brussels reports growth company support in the event of overloading the moment, the airport has been pushing in dispatch – for example, ‘load balancing’ of ahead with further initiatives to improve Brussels Airport expects cargo volumes this year individual flight events between the various processes. “One example is our decision will be better than last year, despite the big drop freight handlers”. to develop a new data exchange platform, in volumes in the first weeks of the pandemic especially for import processes,” Conrady due to the grounding of passenger aircraft. Conrady notes: “Every company involved notes. adopted to the new situation so that Steven Polmans, director for cargo and supply chains could be ensured without Amsterdam Schiphol recovery logistics, says that since September the major disruptions. Also, customs and other Meanwhile, Amsterdam Airport Schiphol has airport had even seen “a double-digit growth authorities reacted flexible and contributed to also seen its cargo volumes recover in recent in our volumes, and we expect further growth

60 CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 Regional Report: Europe

in the months to come”. certain markets being underserved,” notes With passenger air services still heavily Polmans. “Volumes to and from Africa, for depleted, this growth is due to ‘all-cargo example, saw a big drop in April to June. But flights’, including on passenger aircraft. bit by bit, week after week, we see volumes

recovering and getting to a more normal

“At the moment, belly volumes are at 50% pattern again.” while full cargo volumes more than doubled. ” But 31% of the full freighter volumes are currently being transported on board of passenger aircraft operating as freighters,” Week after week, we see highlights Polmans. “In the first peak, this even reached a bit over volumes recovering and 50% of the volumes. With more freighters getting to a more normal coming into operation and less need for PPE transportation, we had stable volumes of pattern again the so called ‘preighters’ in recent months. However, in the last few weeks and days we ” are seeing a growing demand again.” Steven Polmans

There have also been some significant changes in terms of commodity types or Alongside the challenges, the Covid-19 crisis the agenda for different stakeholders. The origin and destination points. has brought some new cargo opportunities fact that Covid-19 will bring a lot of extra for the airport, believes Polmans. vaccine transportation needs will help us to “In the beginning we saw a big increase of further strengthen our position and image as volumes coming from China, driven by all the “What I believe is the biggest impact longer a leading pharma gateway.” PPE needs. A second effect was the grounding term is that suddenly, everybody knows and of all the passenger aircraft and the lack of understands cargo and the importance of LGG and LEJ benefiting overall capacity in the market, resulting in cargo,” says Polmans. “So, we are higher on The Covid-19 crisis has brought some new

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CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 61 Regional Report: Europe

Schiphol’s cargo volumes have recovered in recent months to levels close to last year

cargo opportunities for two European cargo- airport means “LGG is ready to build on the definitely helped in managing peak demands. specialist airports, Liege Airport (LGG) and opportunities”. ” The #freightersfirst policy has generated Leipzig Halle (LEJ). The two are also major dedicated services and infrastructure, to air hubs for FedEx and DHL, respectively, and handle freighters in the most efficient way. increasingly for e-commerce traffic – notably for Cainiao in LGG and Amazon at LEJ. E-commerce, both B2B and B2C, keep growing Freight volumes at LEJ have Head of commercial Steven Verhasselt says increased significantly this year LGG has seen unprecedented cargo volumes at a fast pace and continuous growth of the number of freighter operations this year. ” Steven Verhasselt “For the first 10 months of 2020, we have a year- on-year increase of about 20%,” he says. “2019 He says any shift in cargo lanes – the origins was an all-time record year for Liege Airport; we and destinations – has also been relatively already surpassed the total cargo volume of that limited. The airport has worked to keep a year” by the end of October. For LGG, all that balance, “not to be dominated by one region cargo arrives or departs in freighters. only. The 30-30-30-10 Asia/Africa/Americas/ Europe (ratio) is not exactly there any more, Verhasselt says he is surprised the airport but we are still within range,” he notes. has seen no significant shift in commodities this year, given all the other changes. “The “Asia has increased a bit, but Africa has stayed perishables market, for example, is very very strong, and we also have transatlantic stable, as is the automotive – and even the growth. The shift there is clearly the result live animals business, although we did see a of the shift from belly to freighter, which dip in horses as some big competitions got benefits Liege Airport.” cancelled or postponed,” he notes. “While the preighters are new for every Operational challenges airport, freighters are not in LGG. Despite E-commerce growing at a pace The challenges for LGG has been managing this operational challenges, and at times depleted “E-commerce, both B2B and B2C, keep growth and maintaining the quality of services. numbers of available staff, the airport growing at a fast pace. We believe this and handlers and customs and agents growth is further enhanced by Covid-19, as “In order to meet the requirements of our and truckers have all been able to keep e-commerce is the new normal.” He says the customers, the LGG Cargo Community has performing. We managed the increased logistics processes for these e-commerce made a lot of efforts in adding resources, demand and are ready to keep growing flows “will adapt as well”, noting that the and staff,” says Verhasselt. “The cooperation – hand in hand with long-time and new combination of air and rail connections at the between the operators at the airport has customers.”

62 CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 Regional Report: Europe

New initiatives and infrastructure “The flexibility, and the ability to adapt volumes increased by 8.4% compared to 2019 He continues: “With the increased operations, to change, is a result of digitisation and to more than 1.11 million tonnes. new capacity has been key in LGG. In imagination and goodwill from the staff and the midst of these challenging times, we the organisations. There is still a lot of room for Mario Patyk, Head of Business Development opened 25,000 sqm of brand new first- improvement, but we are a lot further than we for Cargo and Logistics, says LEJ has line warehouses: the AirBridgeCargo hub could ever have imagined one year ago.” consistently demonstrated itself to be one operated by WFS, and the Challenge Group of the world’s fastest-growing cargo hubs, hub, operated by Lachs. Four new widebody Peak capacity management noting that “this growth process has been parking stands are fully operational now.” Verhasselt adds: “At Liege Airport, we continuing for more than 15 years”. have been focusing very much on capacity In terms of second line facilities, he says management and peak capacity management. Indeed, he highlights that LEJ handled the “there is a lot of capacity already added, and Adding capacity is a combination of adding largest amount of traffic at any airport in a lot more in the pipeline. Both our handlers, physical infrastructure and improving the Europe on several occasions in April, “which as well as agents and freight forwarding efficient allocation and use of resources, as reflects its importance as Europe’s fifth- community, are expanding their activities in well as streamlining the processes. largest cargo hub”, and also the fact that its second line.” ” main area of business involves all-cargo traffic

– which continued to fly even in the lowest

He continues: “The connection between first points of this year’s Covid crisis. and second line is an important challenge Adding capacity is a ” now. The cargo connector at Swissport is operational now, and similar facilities will be combination of adding added to smooth the physical transition. The physical infrastructure digital transition is being secured in track and Stepping back from trace applications on LGG Community level.” and improving the digitisation is not on efficient allocation and option. On the contrary, use of resources, as well we want to step it up, as streamlining the and we feel the support processes of the entire cargo ” community Steven Verhasselt ” Steven Verhasselt “Stepping back from digitisation is not on option. On the contrary, we want to step it up, and we feel the support of the entire “While belly freight was unable to take off on cargo community. The government bodies board passenger planes at many other places involved, customs inspections and others, because of the pandemic, the number of are all pushing for further digitisation to cargo flights continued to grow dynamically improve the services. at LEJ – by more than 5% compared to 2019 to a figure of more than 36,000 between “Implementing change is never easy, January and September,” he notes. especially not in challenging high-demand “With up to 1,000 cargo flights every week, times like these. But the need has been the airport and its customers ensure stable recognised, and the will is there, to keep and reliable supply chains. Overall, about 60 investing in new technologies to speed the cargo airlines fly to the airport and operate cargo flow.” a network of routes that involves more than Digital transition continues 280 destinations around the globe.” Verhasselt says “great steps had already been Leipzig’s growth continues made” in terms of digitalisation initiatives to Freight volumes at LEJ, Europe’s fifth-largest Patyk highlighted that the airport “acted streamline processes “before the pandemic cargo hub, have also continued to increase as a central hub for more than 50 aid broke out, and the implementation has significantly this year, in contrast to the flights with medical protective equipment, definitely accelerated. Minimising contact trend elsewhere in Germany. Indeed, the particularly between April and July”, with points on airport was a clear argument for airport set a new monthly record in October goods distributed throughout Germany and digitisation; the fact that some services are handling 124,880 tonnes, 10.9% higher than to neighbouring countries. Alongside its now taken off site – even dealt with from the previous October’s figure. For the first regular airline customers like the Volga-Dnepr home – has accelerated that,” he adds. 10 months from January to October, freight Group and Antonov Airlines, new customers

CARGO AIRPORTS & AIRLINE SERVICES / WINTER 2020 63 Regional Report: Europe

often operating cargo flights using passenger aircraft – also came to LEJ, including Vietnam Airlines and Aeroflot.

“Thanks to the flexible personnel planning performed by our handling company, PortGround, we are able to offer personnel- intensive services to the full satisfaction of our customers at any time. In this case it involved unloading cabins by hand,” notes Patyk.

Express and e-commerce growth In terms of freight types, he says: “We are currently seeing an increasing number of express and e-commerce as well as pharmaceutical shipments. We have special certification for pharmaceuticals. General cargo volumes are also increasing slightly.”

The greatest operational challenges include “protecting the health of our employees and maintaining airport and freight operations without any restrictions”, says Patyk. “Even though freight volumes at LEJ are continuing to increase significantly, we have managed to handle all the regular and additional freight traffic on schedule. To achieve this, we are working with all those involved, around the clock – from freight forwarders and charter brokers to airlines and even the customs service.” Amazon Air launches operations at Leipzig

Handling the large numbers of freight charter Amazon Air in November launched aircraft operating within Amazon Air’s flights at times this year, where the timetable operations at its first-ever regional air global dedicated air cargo network by often changes at short notice, “requires hub in Europe at Leipzig/Halle Airport, end of year. flexible and slick operations”, highlights Patyk, next to the airport’s existing World Cargo praising the “excellent cooperation” by the Center handling facility. The Leipzig/Halle site has already started airport’s cargo stakeholders. to support customer deliveries with two Amazon confirmed to CAAS that the daily flights, Amazon said. Having grown to become “the second-largest 20,000sqm terminal – which has direct The step from running a fulfilment centre air cargo centre in Germany and the number airside access – is a full-service air cargo to the operation of an air hub is seen as a five in Europe”, the airport is preparing for handling facility rather than a fulfilment significant one in Europe and resembles further growth. centre, also confirming that the cargo Amazon’s strategy in the US, where its handling within the facility and the ramp Prime Air operation has its own airport “We will continue to invest heavily in handling to and from the facility will be ground teams and facilities to support an order to expand this position,” says Patyk. performed by Amazon. It said Dietmar own-controlled network. “We announced an extensive investment Jüngling, the former general manager of and expansion programme amounting to the Amazon Fulfilment Centre in Leipzig, There have been reports over the approximately €500 million last year. Firstly, “now leads the team that will sort, load past 18 months of Amazon building we are planning to extend the apron area near and unload parcels from trucks to the up its air operations at Leipzig, with the DHL hub, which is already the company’s planes and vice versa”. indications that that LEJ-based DHL largest in the world. airline, European Air Transport (EAT), The company said it has also leased has been flying during the day for “Secondly, we are planning to build new apron two branded Boeing 737-800 aircraft Amazon with its B757 freighters serving areas, logistics and office buildings in the from GECAS that will be operated East Midlands, Paris and Madrid, with northern and southern parts of the airport. by ASL Airlines on behalf of Amazon the aircraft returning to duty on behalf We are maintaining these plans because of Air in Europe. These aircraft will join of DHL Express for overnight intra- the continual increase in demand and will Amazon’s existing fleet of more than 70 European operations. gradually implement them in line with needs during the next few years.”

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