air cargo media briefing - air transport news · 2014. 6. 4. · iata cargo © international air...
TRANSCRIPT
IATA Cargo © International Air Transport Association 2014
Air Cargo Media Briefing
Glyn Hughes, Director, Cargo Industry Management
IATA Cargo © International Air Transport Association 2014
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
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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
IATA Cargo © International Air Transport Association 2014
Air Cargo: a conduit for world trade $6.8 trillion of goods transported by air
IATA Cargo © International Air Transport Association 2014
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
IATA Cargo © International Air Transport Association 2014
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
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A Conduit for world trade
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Dell’s Global supply chain, made possible by air transport
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Why are the key challenges?
Ê Safety awareness
Ê Security regulations
Ê Increasing modal competitiveness
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IATA Cargo © International Air Transport Association 2014
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
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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
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15
16
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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
IATA Cargo © International Air Transport Association 2014
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
IATA Cargo © International Air Transport Association 2014
International movements of goods
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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
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Structural redesign required…
Ê Operational complexity must be addressed
Ê Reliance on paper must be reversed
Ê Transit times must be accelerated
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Complex interfaces and unidirectional business
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1960s: Three days
IATA Cargo © International Air Transport Association 2014
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
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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
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Global e-AWB penetration: 14.3%
IATA Cargo © International Air Transport Association 2014
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
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