Air Cargo Media Briefing - Air Transport News · 2014. 6. 4. · IATA Cargo © International Air Transport Association 2014 Air Cargo Media Briefing Glyn Hughes, Director, Cargo Industry

IATA Cargo © International Air Transport Association 2014

Air Cargo Media Briefing

Glyn Hughes, Director, Cargo Industry Management


Air Cargo briefing…

Ê Value of Air Cargo Ê Key issues

Ê Safety Ê Security Ê Modal competitiveness

Ê Structural redesign Ê 48-hour challenge

2

IATA Cargo © International Air Transport Association 2014 3

Why is Air Cargo critical?

Ê It’s a vital part of the global economy Ê It saves lives Ê It supports social development Ê It helps entertain us Ê It contributes to aviation profitability Ê Supports airport economics, local jobs Ê Generates $60 billion in airline revenue


Air Cargo: a conduit for world trade $6.8 trillion of goods transported by air


Commodities transported by air Ê Perishables Ê Live animals Ê Live organs Ê General Cargo Ê Humanitarian supplies

Ê Valuables Ê Dangerous goods Ê Mail Ê Express Ê Industry equipment


Air Cargo, critical for world trade

Less than 1% of

volumes

0.5%

Source: the Colography Group, Oxford Economics

$6.8 trillion of

goods

35%

Source: the Colography Group, Oxford Economics

6


A Conduit for world trade

7

Dell’s Global supply chain, made possible by air transport


Why are the key challenges?

Ê Safety awareness

Ê Security regulations

Ê Increasing modal competitiveness



Lithium Batteries Ê ICAO Dangerous Goods Panel proposal

Ê Carriage of “loose” Lithium METAL batteries restricted to cargo aircraft only

Ê Proposal needs ICAO Council approval Ê Proposed effectiveness date Jan 1st 2015

Ê Passengers…awareness notices Ê Global safety awareness campaign targeting

manufacturers, trade associations and export councils

10


Security challenges

Ê Increased regulatory focus on cargo security

Ê IATA supports multi layered risk based security programs

Ê Shipment data and “Known Shippers” is critical

Ê Higher risk cargo subject to additional screening

Ê ACC3, ACAS, PRECISE, PACT

11


11

13

14

15

16

17

330

350

370

390

410

430

450

2007 2008 2009 2010 2011 2012

Mon

thly

FTK

(Bill

ions

)

Mon

thly

RP

K (B

illio

ns)

Seasonally Adjusted RPK

FTK

Industry challenges: need for structural redesign


Modal Competitiveness

Ê AstraZeneca is shifting transport of pharma products from air to sea, with the objective of last year to have moved 40% to sea transport.

Ê Ericsson: better production planning will support strategic shift away from Air Cargo

Ê Sony Corp.: CSR (Modal shift) nearly 30% of total VAIO® notebook computers are now by sea transport


International movements of goods

14

Road 9%

Sea 79%

Air 0.5%

Other modes

0% Rail

11.5%

Volumes transported by mode

Source: “Le fret mondial et le changement climatique” CAS 2010


Structural redesign required…

Ê Operational complexity must be addressed

Ê Reliance on paper must be reversed

Ê Transit times must be accelerated


Complex interfaces and unidirectional business


1960s: Three days


The 48-hour challenge: Cutting shipping times by two days

Ê To refocus on a critical air cargo value point

Ê Respond to the challenge of modal choice

Ê To reposition as the premium transportation mode

Ê To enhance shipment transparency and predictability

18


Solutions: paperless processes

Ê Industry relies on paper

Ê E-Freight program to introduce paperless processes

Ê The electronic Air Waybill (e-AWB) is the cornerstone document of air shipments


Global e-AWB penetration: 14.3%


Thank you For more information Ê Visit our website

www.iata.org/cargo

Ê Subscribe to Cargo Tracker

www.iata.org/optin

Ê Follow us on Twitter

http://twitter.com/iata

21

Documents

Air Cargo Media Briefing - Air Transport News · 2014. 6. 4. · IATA Cargo © International Air Transport Association 2014 Air Cargo Media Briefing Glyn Hughes, Director, Cargo Industry