The International Air Transport Association (IATA) has outlined four priorities to build resilience and strengthen air cargo’s post-pandemic prospects.
The priorities, outlined at the 15th World Cargo Symposium (WCS), which opened yesterday in London are 1) achieving net zero carbon emissions by 2050, 2), continuing to modernise processes, 3) finding better solutions to safely carry lithium batteries, and 4) making air cargo attractive to new talent.
Speaking at the event, IATA’s global head of cargo, Brendan Sullivan, said: “Air cargo had a stellar year in 2021 achieving $204 billion in revenues. At present, however, social and economic challenges are mounting. The war in Ukraine has disrupted supply chains, jet fuel prices are high and economic volatility has slowed GDP growth. Despite this, there are positive developments.
“E-commerce continues to grow, COVID restrictions are easing, and high-value specialized cargo products are proving resistant to economic ups-and-downs. Going forward, achieving our net zero commitment, modernizing processes, finding better solutions to safely carry lithium batteries, and making air cargo attractive to new talent are critical.”
On the plan to achieve net zero CO2 emissions by 2050, Sullivan said “Sustainable aviation fuel (SAF) is the key to achieving net zero emissions. Airlines used every drop that was available in 2021. And it will be the same this year. The challenge is SAF production capacity. The solution is government incentives. With the right incentives, we could see 30 billion liters of SAF by 2030. That would be a tipping point by 2030 towards our net zero ambition of ample SAF quantities at affordable prices,” said Sullivan.
On Modernisation and efficiency, he said: “The challenges of the COVID crisis gave us confidence that we can change and adapt fast. We need to use that confidence to get even closer to the expectations for modernization that our customers have. And we need to be true to air cargo’s unique selling point and move even faster.”
He highlighted two areas where progress was being made viz: IATA’s ONE Record which makes it possible for everyone across the industry’s value chain to see the same information on shipments. Already 156 companies and four customs authorities are using it; IATA Interactive Cargo Guidance which provides a common framework so that tracking devices can monitor the quality and accuracy of conditions of time and temperature sensitive goods.
“The Revised Kyoto Convention which brings standardization, technology, predictability and speed to trade facilitation and the World Customs Organisation (WCO) SAFE Framework of standards to facilitate and secure trade are major steps forward in supporting global trade. But we are still seeing far too many diverging requirements by governments in areas that should be harmonized by these two tools. This needs to change quickly so we can continue to support global trade—and its vital contributions to economies and the UN Sustainable Development Goals—with modern and efficient air cargo. Universal adoption and implementation will deliver the greatest benefits,” he added.
On safety, specifically finding better solutions to safely carry lithium batteries was highlighted as a priority for the industry.
“We can be proud of the progress that we are making to further improve the safe handling of lithium batteries. For air cargo, this is a top priority. But even the best regulatory structure means nothing if the rules are not followed. Compliance is an issue with the transport of lithium batteries, particularly with the proliferation of new—and inexperienced—entrants in e-commerce activities,” said Sullivan.
On people, he remarked: “People are the core of any improvement in what air cargo can deliver. Sadly, we saw thousands of jobs leave the industry during COVID-19, especially cargo handlers. We are now competing for talent in a very tight job market. And when we do find the right and willing talent, training and longer-than-usual security clearance processes delay their entry into the workforce,” said Sullivan.
IATA called for governments to accelerate clearance processes, including those for security, as a short-term solution and longer term to do a better job of attracting, onboarding, and retaining talent.
IATA also encouraged more cargo carriers to sign on to the industry-wide 25by2025 initiative to promote gender diversity.
“The need to create equal opportunities for the female half of the world’s population is highlighted by the situation today where the industry is struggling to attract sufficient talent. Achieving an equal gender balance must be core to any long-term talent strategy,” Sullivan said.