News #93 - The key moments that shaped the industry in 2024

Looking back over the past year, industry leaders spoke to Air Cargo Week to lay out the key moments that they believe shaped their operations and the logistics sector.

Kirsten De Bruijn – Executive Vice President of WestJet Cargo

The surge in fast fashion driven by brands such as Shein and Temu reshaped the air cargo landscape, with an increased need for quicker, smaller shipments. This trend put pressure on air cargo capacities and pushed rates higher as these brands sought to meet rapid consumer demand cycles.

Adjustments in U.S. trade policies, specifically the increase in tariffs on Chinese imports under the Biden administration, led to significant disruptions in supply chains. This pushed more businesses to utilize airfreight to ensure faster delivery times amidst the uncertainties, thereby escalating demand and causing rate fluctuations.

The 2024 US presidential election outcomes are anticipated to have significant impacts on global logistics, potentially altering trade policies and introducing new regulations that could reshape the sector.

Bernardo Nunes – Chief Operating Officer, Chapman Freeborn
 

Digital transformation: The adoption of digital technologies for better tracking, automation, and efficiency in operations continued to rise.

Sustainability: There was a strong focus on reducing carbon footprints and enhancing environmental sustainability.

Capacity management: The industry managed to avoid extreme peak season rates by better allocation of resources and improved terms between stakeholders.

Long-term contracts: An increasing trend towards securing longer-term contracts to ensure stability and predictability.

Resilience and adaptability: The industry demonstrated remarkable resilience in the face of disruptions, such as natural disasters and geopolitical shifts.

Dr Jan-Wilhelm Breithaupt – CEO of Jettainer

“For me personally, becoming the new CEO of Jettainer was, of course, a decisive step. I have taken over a well-positioned company with an outstanding team. We are now setting the course to drive forward the digital transformation and further expand the services for our global customers.

Another highlight this year was the 20th anniversary of Jettainer. Over the past two decades, Jettainer has grown to become an industry leader. Today, we manage the most efficient ULD fleet of around 110,000 ULDs at 500 locations worldwide, serving some of the largest and most prestigious airlines.

 “I also see the signing of the IATA Digitalisation Leadership Charter as an important step. We want to respond even more comprehensively to the requirements and goals of airlines, freight forwarders, GHAs and IT system providers and develop tailor-made digital solutions for the entire air freight industry. A central aspect of the charter is the introduction of the ONE Record standard, which enables efficient and transparent data exchange across the entire supply chain. As part of this, we integrate our ULDs into ONE Record as “Digital Twins”. This will be one of the first Internet of Things implementations as part of the new ONE Record approach.

We also set the course for a digital future with the appointment of Stefanie Pauly as Chief Information and Technology Officer. With this newly created position, we contribute to our strategic focus on innovation, digitalization, and technology to continue offering our customers the best services and strengthen our role as a global market leader further.

In 2024 we have continued to drive forward our strategic realignment to respond optimally to regional market trends and needs. The first measure was to establish a structure with regional general managers who would ensure closer customer relationships in the respective regions, respond to specific market needs and manage both sales and operations”.

Sanjeev Gadhia – CEO of Astral Aviation

Geopolitical Risk has played an important part in 2023 and 2024 caused by the crisis in Ukraine, Israel, Sudan and Red Sea. 

Demand for E-Commerce shipments from China to US, Europe, Middle East and Africa in 2024 will require an enhancement in existing capacity in 2025  Perishables demand from Africa to Europe / Middle East is growing at a fast-pace and will require main-deck capacity 

 Medical shipments, including Vaccines and Pharm,a continue to be in demand and will result in additional capacity in 2025.
 

Humanitarian cargoes into Africa, Lebanon and Syria will be in demand as the Middle East will hopefully go into reconstruction mode 
 

Chris Bode – Vice President of Global Airfreight for Rhenus Air & Ocean
 

The logistics landscape in 2024 was shaped by a number of pivotal events, each leaving a lasting impact on how the industry operates and plans for the future. Geopolitical tensions also played a significant role in reshaping global trade patterns. The ongoing looming intensification due to the election of trade disputes between the U.S. and China pushed businesses to rethink their sourcing strategies, leading to a surge in air freight demand along alternative trade routes, especially through Southeast Asia and Latin America. Similarly, the war in Ukraine continued to disrupt transport in Europe, pushing logistics providers to stay flexible to maintain smooth supply chains.

Strikes within the air and ocean freight sectors also had a notable impact in 2024. As more airport operations are outsourced, disruptions caused by industrial action led to significant delays in air freight movements. This created bottlenecks at critical hubs, underscoring the vulnerability of the industry’s reliance on outsourced labour and the need for more robust contingency planning to minimize the impact of such disruptions. Multiple air freight hubs, such as those in Europe, enhance flexibility by enabling the redistribution of cargo between airports, thereby mitigating delays Meanwhile, for ocean freight, port strikes in North America have provided tailwinds to air freight as a contingency plan. This trend is likely to continue into next year, especially in the first quarter, as port strikes are anticipated.

Stricter requirements for cargo screening and documentation added complexity to air freight operations, increasing transit times and operational costs. These new regulations required companies to adjust their processes and invest in enhanced security measures to comply with the evolving standards.

The year also saw a boom in passenger travel, which increased the availability of belly cargo capacity on flights. This created new opportunities for airlines and freight forwarders to introduce routes to previously underserved markets, enhancing global connectivity. It allowed companies to better respond to shifting customer demands and tap into new markets for growth. On the technological front, 2024 saw significant progress, with AI-driven tools transforming the way logistics operations are managed. Many carriers switched to digital booking platforms, streamlining processes and offering more transparency in the booking cycle. Freight forwarders, empowered by these advancements, could manage more detailed and complex loads, improving efficiency and reducing the likelihood of errors.  The enhanced integration of forwarders and carriers on digital platforms, such as cargo.one, enables forwarders to adapt more rapidly and effectively to the challenges of a dynamic global landscape.

Taken together, these events highlighted the resilience and adaptability of the logistics industry, demonstrating how forwarders are rising to meet the challenges of a complex, ever-evolving global market while maintaining their promises to customers, laying the groundwork for innovation and sustainability in the years ahead
 

Yassine Berrada – Vice President of Cargo at Royal Air Maroc 

Economic growth contributions: Our collaborations with Moroccan exporters have been pivotal in driving national economic growth. By serving as a key logistics partner, we have enhanced our support for the Moroccan economy and provided essential logistics solutions that assist local businesses in reaching international markets.

Humanitarian commitment: Under the strategic vision and impulsion of the highest authorities of the country, Morocco is relentlessly working to develop South-South Cooperation and is acting, in particular, for the development of Africa and the well-being of African communities. In that scope, we have signed this year a partnership with Airlink, which fits perfectly within our vision and mission in a common objective of continental solidarity. This initiative new underlines our dedication to using our network capabilities to support communities in need, demonstrating our commitment to social responsibility.

Network expansion as a global hub: The strategic expansion of our network has elevated the Casablanca hub to a global scale, enhancing our capacity to link Morocco with the world. This expansion has positioned Royal Air Maroc Cargo as a crucial hub in global logistics, connecting continents and facilitating international trade.

Casablanca hub investments: Our strategic investments in the Casablanca hub and the expansion of handling capacity in 2024 have firmly established it as a key gateway to Africa. These developments have further strengthened its role in enabling seamless global cargo transitions, positioning it as a pivotal hub for international trade. 

Operational excellence in handling: Our strategic use of in-house handling agents has ensured superior efficiency and quality in cargo management. This move has significantly enhanced customer confidence and reinforced our reputation for reliable and secure cargo services.

Stanislas Brun – Vice President Cargo of Etihad Cargo 

Etihad Cargo achieved several major milestones in 2024. Our MOU with SF Airlines to establish a landmark joint venture was a standout moment, and our partnership has enabled seamless cargo movement across Asia, Europe, and beyond. Our collaboration is providing customers with better access to key trade lanes and expanding our global reach.

The transformation of our organisation has created a more efficient, focused structure by appointing senior leaders to oversee products and global accounts, reallocating resources to newly defined regions, and improving responsiveness and customer service. The launch of our Customer Experience Department, which is already delivering significant improvements in responsiveness and personalisation. The merger of Etihad Cargo’s commercial and operations functions streamlined decision-making and improved service delivery by aligning our operational and commercial goals. 

The growth of Etihad’s passenger fleets and expansion of key destinations, including the 10 recently announced, such as Hong Kong and Taipei, and the addition of Paris to our freighter network will provide our customers with greater connectivity and increased capacity. We are also expanding our fleet, exploring options to order three more A350 freighters —which would bring the total to 10, highlighting our commitment to meeting global logistics demands.

Eyal Goldberg – CEO of Breeze

Introduction of advanced data-powered logistics solutions: Data-driven processes expanded its role in the logistics sector, offering better risk prediction and optimization. These innovations included integrating data analytics into insurance policies to help mitigate shipment risks.  In the insurance industry, traditionally, risk assessments have relied mostly on historical data, which do not account for dynamic factors, potentially leading to under- or overcharging insurance premiums, insurers denying coverage altogether, or cargo owners failing to procure the right insurance for their specific needs.

Geopolitical and severe climate events disrupting supply chains: Global conflicts, port strikes, and extreme weather events highlight the critical need for flexible risk coverage solutions that strengthen supply chain resilience in the face of frequent disruptions

Adoption of stricter emissions regulations: New environmental legislation across the world introduced new operational risks for the airfreight industry. This prompted the development of tailored solutions to navigate compliance challenges effectively and reduce the industry’s contribution to climate change. 

Michael Teoh – Head of Strategy at CargoTech

Challenges from manufacturers to fulfill airlines’ orderbooks will result in more creative ways to maximise the available capacity. Load factors should trend upwards as previous less convenient routing options would be deemed viable.

Market expectations on efficiency require higher adoption of technology both in commercial and operational areas. The supply chain is end-to-end, and businesses are expected to move goods with better Flown as Planned (FAP), with fewer offloads and misconnections. Quality of service delivery will differentiate the good from the best.

There is a higher probability that the US will adopt an expansionary fiscal policy, which should, in return, drive increased consumer spending. Trump’s policy changes when he takes office could change the way trade flows move. They could also trigger new market opportunities, and demand from traditional origins may slow down. Manufacturers are sensitive towards tariffs and there will be new winners and losers.

AI embedded into everyday work tasks. Customers are constantly asking for more ways of tapping AI into daily routines from things as simple as quotation and booking to more sophisticated customer leads and targeting for better conversion.

The logistics sector has not yet taken a big leap in maximising the data that could be manipulated for better decision-making. In many parts of the organisation, data are still in somebody’s Excel sheets and only accessible to that individual. This gap should close much more in 2025 and beyond as the need to ensure single source of truth drives higher digitization and digitalisation.

Colin Charnock – CEO of Trans Global Projects

Digitalisation of customs and cross-border regulations: The shift towards digital systems for customs procedures and cross-border logistics was a game-changer. This transition reduced delays, improved transparency, and simplified compliance with international trade regulations. The efficiency gains from these digital systems allowed us to streamline operations and enhance the overall customer experience.

Boom in pharma logistics: The continued growth in pharmaceutical shipping, particularly in cold-chain logistics for vaccines, biologics, and precision medicines, drove significant investments in temperature-controlled solutions. This boom not only expanded our service offerings but also reinforced our commitment to maintaining the integrity and safety of sensitive pharmaceutical products during transit.

Freight rate volatility: The logistics sector faced ongoing challenges due to fluctuations in fuel prices, capacity oversupply, and demand shifts. This volatility in freight rates necessitated greater collaboration and cost optimization across supply chains. By working closely with partners and leveraging advanced analytics, we were able to navigate these fluctuations and maintain competitive pricing for our customers.

Supply chain decentralisation: The trend of companies diversifying their manufacturing bases and supply chains to reduce dependency on single regions, such as China, led to the emergence of new logistics hubs in countries like India, Vietnam, and Africa. This decentralization reshaped our logistics networks, allowing us to tap into new markets and enhance our global reach.

Geopolitical disruptions and trade wars: Ongoing geopolitical tensions, including trade wars between major powers and conflicts in key regions, had a profound impact on our operations. These disruptions led to route diversions, increased costs, and the need for adaptable logistics networks. By staying agile and responsive to these challenges, we were able to mitigate risks and ensure the continuity of our services.

Michael Zach – Senior Vice President Ground Handling and Cargo Operations at Vienna Airport

The strongest impact was the extreme increase in e-commerce due to the IOSS regulation. These transports from Asia to Europe had and still have massive growth rates, influencing air freight capacities and the importance of Vienna Airport as a cargo hub.

Pharmaceutical products and related services continue to show strong growth and are very important at Vienna Airport. In fact, Vienna Airport is the only airport in Central and Eastern Europe with its own pharmaceutical center and complete end-to-end pharmaceutical service, i.e., it also offers handling from the aircraft to the truck and vice versa from a single source.

The agreement to expand the existing partnership with Korean Air Cargo was an important milestone this year. Korean Air has been operating regular cargo flights to Vienna since 2004. Since this year, we have intensified our joint efforts to meet the growing demand for air cargo services between Korea and Vienna Airport as a flight and cargo hub for Central and Eastern Europe.

The successful long-term extension of the contract with LCAG and the confidence of our largest freight customer to continue using Vienna as a hub also secure the future importance of the location as a freight hub for the CEE region. In addition to general cargo and mail, temperature-sensitive pharmaceutical shipments and hazardous goods, in particular, are routed via Vienna.

This year, we have once again strengthened our good cooperation as a cargo community with all local freight forwarders, cargo handling and ramp handling in order to establish Vienna as a growing cargo hub for its customers. By hosting the Vienna Cargo Day and the FlyPharma Conference again, we once again created opportunities for exchange and new impulses to further deepen cooperation within the community.

Adrien Thominet – Executive Chairman of ECS Group

Strategic acquisitions across key regions: ECS Group made significant acquisitions in Africa, Central America, Europe, and Asia to address the industry’s growing demand for regional consolidation and seamless connectivity. These moves enhanced our global reach and allowed us to deliver localized solutions tailored to market needs, cementing our position as a leader in the air cargo sector.

Remarkable tonnage growth: We are proud to report a 15 percent increase in tonnage, a reflection of the broader recovery in global trade and the surging demand for e-commerce. This milestone underscores the resilience of the logistics sector and our ability to meet the growing needs of our clients.

Sustainability milestones with SAF partnership: ECS Group partnered with TUI on the use of Sustainable Aviation Fuel (SAF), demonstrating our commitment to driving greener operations and aligning with the global push for sustainability. This collaboration marked a key step toward reducing carbon emissions and enhancing eco-friendly logistics practices.

Accelerated digital transformation: Through strengthened partnerships with CargoTech, we implemented advanced digital tools that have significantly improved operational efficiency and enabled data-driven decision-making. These innovations have streamlined processes, increased transparency, and reinforced our role as a tech-forward logistics leader.

Workforce growth and skill development: With an 11 percent expansion in our workforce, ECS Group prioritized attracting and developing talent to address the growing complexity of the logistics sector. Our focus on skills and expertise ensures we remain well-equipped to deliver excellence in an ever-evolving market.

Frédéric Brun – Head of Commercial Cargo & Logistics at Liege Airport

Cargo Traffic Growth: The airport experienced an 18 percent increase in cargo flights and an 11 percent rise in tonnage by September, fueled by strong demand from regions such as Asia-Pacific and MESA. This growth solidified its position as a global logistics player.

Development of a Multimodal Hub: A strategic partnership with a local logistics entity led to plans for a multimodal air-rail-road hub, supported by a €22 million investment. This aligns with sustainability goals under the EU Green Deal, enhancing integrated freight solutions.

Focus on E-Commerce Logistics: Hosting a cross-border e-commerce forum brought attention to challenges in customs and logistics efficiency, aligning the airport’s operations with the growing demands of the sector.

Attraction of Key Stakeholders: Targeted recruitment of major logistics players like DHL and Geodis strengthened operations, increasing export capacities and overall throughput

Resilience and Strategic Investments: Despite previous setbacks, including changes in major carriers’ operations, the airport demonstrated growth and resilience with improved cargo volumes and infrastructure upgrades

Emir Pineda – Director of Marketing and Air Service Development Division at Miami-Dade Aviation Department

For us, the top three are e-commerce, e-commerce and e-commerce. Joking aside, the sheer volume of e-commerce now moving through the skies and through our airport is staggering. At MIA, we’ve seen total de minimis shipments – those under US$800 in value – go from 1.6 million shipments in 2021 to 25 million shipments the following year to 75 million shipments last year. 

The vast majority of those are e-commerce shipments, and that sort of exponential growth – and its expansive and immediate impact on every link in the airfreight supply chain – can’t be understated. We don’t see it slowing down significantly in the near term, either. 

Putting that aside, we can’t overlook the quiet strength of our core freight sectors here at MIA – perishables, pharma, electronics, aircraft parts – which have been equally impactful, albeit without the big splash of e-commerce. It’s actually quite remarkable to see that there’s enough space in the market for all of these sectors to continue thriving, even as e-commerce ramps up in such a big way

Radhesh Menon – Vice President and Head of Strategy and Product Management, CLS at IBS Software

The advent of AI and data – particularly in the form of Gen AI as mature technologies that businesses can credibly bank on. I believe that 2024 has been a foundational year in this sense, which has swung the balance towards the rapid adoption of this technology in businesses. IBS has been investing heavily in this area for the past 2-3 years and has reached critical mass to make this into an AI Center of Excellence (COE), which we have launched in 2024.

The impact of geopolitical uncertainty has become the new norm, and it has become harder than ever to have a clear lens on how business performance will be beyond short-term and tactical timescales. This will force airlines and service providers to look at solutions that will give them the flexibility and agility to respond quickly to these rapidly changing scenarios. Automation will be a key aspect of this – at IBS, we have been working with some of the industry leaders in compliance solutions to provide embedded compliance and regulatory capabilities to our customers. 

The need for transformation in this industry has become more and more critical in the industry and one of the big enablers for this is data. 2024 has seen transformational initiatives like Cargo One Record taking big strides towards adoption, and this is a huge milestone in the air cargo industry’s transformation journey. Our own One Record journey has matured through 2024 to a level where we have launched IBS’s One Record server on which we have (and continue to) successfully run live PoCs with customers and partners.

Hoon Lim – Deputy Director at Incheon International Airport Corporation

The US-China conflict is a major growth factor for Incheon International Airport, which is geographically located between the US and China.

Delay in introducing new aircraft due to production disruption: Many airlines in Korea are also considering additional introduction or establishment of new cargo aircraft due to the recent growth in air cargo. However, the disruption in aircraft production that has continued since the pandemic is becoming more serious, especially in the cargo aircraft sector, and this is expected to cause a continuous supply shortage for several years to come.

Full normalisation of passenger aircraft operations. Passenger aircraft operations have finally been fully normalized since September of this year after the pandemic. This is expected to further activate cargo transportation using passenger aircraft bellies. The proportion of cargo transportation by passenger aircraft at Incheon Airport is currently around 30%, but it is expected to increase to around 40% in the future.

Merger of Korean Air and Asiana Airlines: Korean national airlines Korean Air and Asiana Airlines, which use Incheon Airport as a hub in the air cargo transportation industry, completed all procedures related to the merger as of December of this year. However, Asiana’s cargo operation business will be transferred to Air Incheon, another cargo airline in Korea.

LCCs begin operating wide-body passenger aircraft for cargo transportation” There are a total of eight domestic LCCs in Korea, and most of them have operated only small aircraft such as the A320 and B737, but recently, there has been a noticeable trend of introducing medium and large aircraft such as the B777, B787, and A350 to newly launch cargo transportation. Cargo transportation is a key factor in determining the survival of airlines when passenger demand plummets due to a pandemic.

Sean Harding – President President Animal Transportation Association

In 2024, several incidents highlighted the ongoing challenges and risks associated with live animal transport, underscoring the need for stringent regulations and improved practices to ensure animal welfare.

Maritime Incidents – Multiple significant events occurred regarding the transport of Farm Animals and Livestock due to unseaworthy vessels and severe weather conditions.

Public and Political Pressure – Increased activism and public scrutiny continued to raise awareness about the ethical concerns surrounding live animal shipments. Their advocacy efforts put pressure on governments and airlines to take a stronger stance on animal welfare, with some regions considering outright bans on certain types of live animal transport.

Carrier Restrictions – Segments of the AVI Industry saw reduced air carrier options to transport their cargo. This pushed segments of our Association to strictly utilize charter operators at a significant financial impact to the industry.

Legislative Reform: Some countries, including those in the European Union, debated or passed legislation that could limit or even prohibit the long-distance transport of live animals, particularly for slaughter. Due to our members concerns about how future regulations might impact global trade, the ATA spent a considerable amount of time engaging regulators to ensure Legislative Reform will not be overly burdensome.

Labor Shortages – Ongoing labor shortages and strikes at key ports and airports, made it challenging to manage AVI shipments efficiently. These factors led to delays, increased costs and the potential for additional welfare risk to AVI shipments in 2024.

James Golding – Head of Cargo at Heathrow Airport

Growth of widebody belly-hold cargo capacity as we restored our passenger route network, ocean freight disruption in the Middle East, continued strong e-commerce demand from China, continued strength of general cargo, such as fashion imports from the Asia Pacific region, the continued strength of UK export specialities, such as Scottish salmon and whisky. 

Source: https://aircargoweek.com/the-key-moments-that-shaped-the-industry-in-2024/

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