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. 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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 Printed by: The Manson Group Limited St Albans, Hertfordshire AL3 6PZ, United Kingdom 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