THE INTERNATIONAL Air Transport Association at the 16th World Cargo Symposium outlined three priorities to enable the air cargo industry to overcome the present challenging operating environment.
These three priorities were sustainability, digitalisation and safety.
At the WCS, which took place this week in Istanbul, IATA global head of cargo Brendan Sullivan said air cargo is a different industry than the one that entered the pandemic.
“Revenues are greater than they were pre-pandemic. Yields are higher. The world learned how critical supply chains are. And the contribution of air cargo to the bottom line of airlines is more evident than ever,” he said.
“Yet, we are still linked to the business cycle and global events. So, the war in Ukraine, uncertainty over where critical economic factors like interest rates, exchange rates and jobs growth are concerns that are real to the industry today. As we navigate the current situation, air cargo’s priorities have not changed, we need to continue to focus on sustainability, digitalisation, and safety.”
Sustainability
According to IATA, sustainability is a critical priority and the aviation industry’s license to do business. This past October, at the 41st ICAO Assembly, governments agreed to the Long-Term Aspirational Goal (LTAG) of net-zero carbon emissions by 2050, in line with the industry’s commitment adopted in 2021.
Sustainable aviation fuel is critical to achieving this goal, 65% of carbon abatement will come from SAF, however, production levels remain challenging. IATA called for government incentives for production.
Mr Sullivan said SAF is being produced and every drop is being used.
“The problem is that the quantities are small. The solution is government policy incentives. Through incentivising production, we could see 30 billion litres of SAF available by 2030,” he said.
“That will still be far from where we need to be. But it would be a clear tipping point towards our net zero ambition of ample SAF quantities at affordable prices.”
Digitalisation
IATA said air cargo needs to continuously improve its efficiency, and the area of the greatest potential is digitalisation.
The organisation said ensuring digital standards are in place to support the global supply chain is one of its main goals in the digitalisation area.
“Guidance has been finalised on tracking devices – the IATA Interactive Cargo guidelines – used to monitor the quality and accuracy of conditions of time and temperature sensitive goods being shipped across the world,” IATA said in a statement.
Also it said ensuring compliance and support for customs, trade facilitation and other government processes that are increasingly digitalised is an important goal.
Safety
Mr Sullivan said alongside sustainability and efficiency is safety.
“The agenda for air cargo continues to be dominated by lithium batteries. A lot has been done. But, quite honestly, it is still not enough,” he said.
IATA outlined three safety priorities for air cargo:
- Stopping rogue shippers – civil aviation authorities must take strong action against shippers not declaring lithium batteries in cargo or mail shipments.
- Accelerating the development of a test standard for fire-resistant aircraft containers with a fire involving lithium batteries.
- Ensuring recognition from governments of the single standard to identify all lithium battery powered vehicles which comes into effect from 1 January 2025.
Mr Sullivan said air cargo is a critically important industry.
“It helps build a better future for the people of the world. it’s an industry that saves lives, delivering aid and relief to those in need. The industry mobilised to support those affected by the earthquakes in Syria and Türkiye,” he said.
“Working together to ensure that air cargo remains a reliable and efficient means of providing support to those in need, while simultaneously strengthening our global supply chains and contributing to the sustainable development of our economies is essential.”