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Ocean disruption offers no easy windfall for airfreight, warns DSV

Disruption to ocean shipping is not triggering a large-scale switch to airfreight - the cost of emergency lift is keeping most shippers at sea, according to DSV. Speaking at TIACA's Air Cargo Forum in Miami last week, head of global airfreight Achim Martinka said such decisions depended on whether the business impact of a delay justified paying the airfreight premium. "Most of the customers still stay on the seafreight side because they are not used to having shipments on time anyway," he said. "If you have two or three weeks' delay, this is a normal thing. And if you would switch to airfreight, it could be up to 20 times more expensive. So this is really a very tough financial decision to take." Conversion volumes remained limited, he said and added: "The conversion to air is still not in huge numbers. It's still on a lower level, from what we see." But shippers that wait too long before seeking an alternative risk are finding any available airfreight capacity has become prohibitively expensive. "Usually, our contracts are already signed for six or 12 months with the airlines. So everything which comes on a spontaneous, ad hoc basis will be even more expensive than the base load already on the aircraft," Mr Martinka explained. Where the duration of a disruption was uncertain, he said, shippers needed to begin arranging an airfreight solution. "Otherwise, you're going to be the last one, and then capacity is not affordable anymore." The competition to secure lift is also evident at Atlas Air, where Martin Drew, chief strategy and transformation officer, told The Loadstar forwarders and shippers increasingly wanted the certainty of dedicated capacity. "The contract durations we have are very lengthy, because forwarders, in particular, and shippers want that capacity locked-in," he said. "It helps from a planning perspective, knowing they've got that capacity, especially in an environment where supply is constrained." Atlas itself has demand for dedicated aircraft it cannot currently accommodate. Mr Drew said: "We've got a pipeline today of business that is tens of aircraft, and we can't service that demand." However, finding space is only one obstacle to switching modes. Mr Martinka warned that ocean shipments required new documentation and operational preparation, including checks on dangerous goods, aircraft dimensions, and how cargo would need to be rebuilt for flight. The practical difficulties were illustrated by Emir Pineda, director of air service development at Miami-Dade Aviation Department, who described an attempt to establish a sea-air movement of Honduran okra to the UK via Miami and Amsterdam. "We were able to get a permit from USDA to transport perishable product from Central America via ship to Miami, then take it from Miami, without opening it, to the airport and then put it on an airplane and fly it to Europe. Sounds pretty simplistic, but it was actually quite complicated. "It got to Miami: two containers - that's a lot of cargo for one airplane. "We had to find the capacity on a freighter, because it had to go all in one shipment [and the] capacity had to be available on the day the ship was arriving, because you only had two days to move it. Those were the conditions USDA set. "We also had to maintain the cool chain throughout the logistics supply chain, because it had to keep a certain temperature. "Once it got to Amsterdam, refrigerated trucks trucked it over to the UK. In the end, it worked. One time. "Why only one time? Because of the complexity behind that. You had to get a shipper to agree to get it on the ship to Miami, and then you had to find the capacity on a consistent basis to move 60 tonnes for several weeks. "What do you tell that customer when the season's over? 'Could you bring back the freight?'," asked Mr Pineda."That doesn't work for forwarders; they want consistency. They want capacity availability when they need it." Mr Martinka said most shippers had developed some form of emergency plan since Covid, but he was not seeing a regular shift of ocean volumes into airfreight simply to maintain a contingency route. "It is certainly a part of a resilience plan, which perhaps needs to be tested from time to time," he said. Forwarders and airlines had, nevertheless, become faster at adapting their networks to disruption, he added. DSV's ACMI capacity allowed it to change destinations when customers needed alternatives. "We have our own network, so we can decide every day with our ACMI flights where to fly. We can switch immediately if that's needed for the customer. "The good thing in air cargo is that airfreight is like water: it's going to find its way."

Community is the key to success in cargo for Fraport's Toepsch

Fraport's recently appointed vice president for cargo development, Felix Toepsch, started his airfreight journey more than 13 years ago when he studied Aviation Management in Frankfurt. What attracted him from the beginning was the international nature and complexity of the aviation business. "Air cargo connects businesses, economies and people across the globe, often in ways that are not immediately visible to the general public," he says. Since joining Fraport in 2013, he has worked in a variety of roles focused on business development, process optimisation and innovation. This included, since January 2023, being executive director of Air Cargo Community Frankfurt, giving him the opportunity to work closely with over 115 companies and institutions representing virtually every part of the airfreight value chain. "That experience reinforced my belief that successful cargo hubs are built not only on infrastructure, but also on collaboration and trust," he asserts. He believes that the Air Cargo Community is one of Frankfurt's greatest strengths "and personally, a topic that is particularly close to my heart". "While working at the Air Cargo Community Frankfurt, I saw first-hand how much can be achieved when companies that might otherwise compete with one another work together on common challenges." Few airports have such a strong and well-established network connecting airlines, freight forwarders, handling companies, authorities and technology providers, he says. Infrastructure and capacity are important, but they are only part of the equation: "The real differentiator is the willingness and ability of stakeholders to look beyond the individual corporate success and collaborate, share ideas and develop common standards that improve the performance of the entire location." Many of the innovations implemented in Frankfurt over recent years have been possible because of this collaborative approach - digitalisation, process harmonisation or community-wide operational standards. Progress happens much faster when all partners share a common vision. "Having worked closely with so many stakeholders across the cargo community, I believe that this collaborative mindset will become even more important. "The challenges facing our industry, from digital transformation and capacity management to growing customer expectations, cannot be solved by a single company alone. "That is also the idea behind our CargoHub Masterplan. This means developing solutions in close partnership with our customers, service providers, authorities and industry." Changing market The industry itself has changed significantly in the past decade or more. Global supply chains have become more complex and, in many cases, more vulnerable. Recent years have shown how quickly geopolitical developments, economic disruptions or changing trade patterns can impact logistics flows. "At the same time, customer expectations have evolved dramatically," Toepsch continues. "Pharmaceuticals, semiconductors, high-value goods, biotech and e-commerce sectors require greater speed, transparency and process reliability than ever before. "As a result, digitalisation, data sharing and operational resilience have moved from being competitive advantages to becoming basic requirements. "Air cargo is no longer just about moving goods from A to B. It is increasingly about enabling global supply chains through smart, connected and efficient logistics ecosystems." In his new role, Toepsch's ambition for cargo at Frankfurt is to achieve 50% growth by 2040. This is based on a clear strategy, he says. "We are not relying on a single project or initiative. Instead, we have developed the CargoHub Masterplan, which focuses on three closely interconnected areas: site optimisation and development, digitalisation and process innovation, and strong collaboration across the Cargo Community, both locally in Frankfurt and internationally. "These three pillars must work together. Space alone will not be sufficient if processes remain inefficient. Equally, digital solutions can only achieve their full impact if the right infrastructure is in place." One priority is continuing to strengthen digital connections across the cargo community: "Air cargo is a highly complex ecosystem involving airlines, freight forwarders, handling agents, customs authorities, trucking companies and many others," he says. "Efficient operations depend on fast, secure and transparent data exchange across organisational boundaries." Fraport and the cargo community and the 'allivate' joint venture is developing the FAIR@Link Cargo Community System. The goal is to increase automation, reduce administrative effort, improve visibility and enable more seamless cooperation along the supply chain. Toepsch continues: "At the same time, we are selectively developing our infrastructure in line with future demand. Through the further development of CargoCity South and the development of additional logistics areas, we are establishing the conditions necessary for long-term growth. "Ultimately, our objective is straightforward: we want Frankfurt to remain Europe's leading cargo hub and provide existing and future customers with a digital, highly efficient, competitive and future-oriented logistics environment." Space race In an age of increasing pressures on available land worldwide, Frankfurt is in a fortunate position: "Unlike many established cargo gateways, we still have room to grow," says Toepsch. The airport offers development opportunities within existing logistics areas, giving companies the ability to grow alongside future cargo demand. "We are focusing on making better use of existing sites and further developing areas that are already designated for logistics activities. This is combined with increasingly efficient, digital processes," Toepsch says. At the same time, efficiency gains will be essential. The future of air cargo depends on how intelligently we use available infrastructure. "Digitalisation allows us to improve planning, increase transparency and utilise existing resources more effectively. Better information flow often creates more capacity than additional physical infrastructure alone. "Our approach therefore combines both elements: smart use of technology and targeted infrastructure development in close exchange with our cargo community and aligned with the operational needs of these companies." Air cargo has always been an industry defined by change, but the pace of change has increased considerably. Today, companies must navigate geopolitical uncertainty, shifting trade routes, increasing regulatory requirements and rising customer expectations. At the same time, demand for specialised cargo products continues to grow, while customers expect faster, more transparent and more reliable logistics solutions. Another major challenge is international competitiveness. Air cargo markets are global by definition, and cargo flows will naturally gravitate toward locations offering efficiency, reliability, cost competitiveness and economic viability. Toepsch explains: "That is why framework conditions matter. We need greater regulatory harmonisation across Europe and internationally competitive operating conditions. Today, we see other airports growing faster, partly because they benefit from less complex regulation and greater planning certainty. "Airports, airlines and logistics providers can invest, innovate and improve processes. But long-term growth also depends on policy decisions. Competitiveness cannot be created by the industry alone." Frankfurt's response is the CargoHub Masterplan. Together with its partners, it is investing in infrastructure, digitalisation and efficiency and working to ensure that it remains a reliable cargo hub. However, says Toepsch: "To fully unlock that potential, our efforts must be supported by framework conditions that encourage innovation, enable growth and create a level playing field across Europe." Meaningful growth requires balance. "For us, successful cargo development is not only measured by volumes and economic performance but also by how responsibly we operate within the region. We care about our neighbourhood and the surrounding communities, and the people who live there. "The measures included in our CargoHub Masterplan do not require airport expansion beyond already approved areas and focus instead on optimising existing sites and developing logistics areas that are already designated. "We also place strong emphasis on reducing operational impacts wherever possible. A good example is the introduction of the Common Pre-Check-In process in CargoCity South. "Through centralised truck management and slot booking systems, truck traffic can be organised more efficiently, reducing congestion and unnecessary vehicle movements." Equally important is transparent dialogue. Fraport maintains continuous communication with political stakeholders, businesses and neighbouring communities, ensuring that developments are explained transparently and it offers dialogue at an early stage. Toepsch concludes: "It is also worth remembering that air cargo generates significant economic value. Frankfurt cargo supports thousands of jobs directly and indirectly and plays a crucial role in connecting regional businesses to global markets. Maintaining those connections is an important contribution to economic prosperity and supply chain resilience. "The question is not whether Frankfurt should remain a strong cargo hub or a good neighbour. It has to be both, and that is the standard we set ourselves."

Emirates SkyCargo launches specialised AI tech shipment service

Emirates SkyCargo has launched a dedicated product designed to help customers move critical and sensitive AI infrastructure safely and on time. AI Tech is tailored for AI server racks, semiconductors, GPUs, capital equipment and other critical hardware infrastructure. The service combines globally standardised dedicated handling procedures to maintain equipment orientation and minimise risk of damage; priority loading and scheduling for time-critical deployments; airport-to-airport shipment visibility, with milestone updates monitored through Emirates SkyCargo's command centre in Dubai; proactive customer communication and coordination throughout the shipment journey; and specialist project cargo support for oversized and heavy cargo. With increasing sophistication of computing and processing systems around the world and accelerating adoption of AI technologies, the movement of technology equipment has become increasingly complex, said Emirates SkyCargo. Large-scale deployments often involve high value cargo, compressed timelines and specialised handling requirements. Badr Abbas, divisional senior vice president, Emirates SkyCargo said: "Behind every AI breakthrough is physical infrastructure that needs to arrive safely and on time. "AI Tech is designed to give customers confidence that their critical equipment will move seamlessly across our network, supported by operational oversight and proactive communication. "In July alone, we transported more than 700 tonnes of AI infrastructure across our global network, and demand has continued to grow. As this sector expands, our ambition is to become the carrier of choice for companies operating across the AI ecosystem." For highly specialised manufacturing equipment, station capability assessments are conducted in advance to ensure shipment requirements can be safely accommodated.