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Aircraft production, technology and GBA overlooked 10 years ago

Air cargo leaders have said that technology, aircraft production and market potential in the Greater Bay Area are amongst the issues that were underestimated in importance 10 years ago. During an 'Industry Leaders' panel discussion at TIACA Air Cargo Forum, participants were asked what they underestimated or got wrong 10 years ago in terms of how air cargo would evolve. Referencing the current demand for widebody freighters, Stanislas Brun, chief cargo officer at Etihad Cargo suggested that OEMs could have sped up aircraft parts manufacturing to match market evolution and demand that has increased over the last 10 years. "When you look at the lack of development in this matter, every year we are decreasing the number of aircraft delivered. It is scary, as we are not necessarily going in the right direction. And I believe we are in this situation for the next 15 years. "Ten years ago, I don't necessarily think it was an issue, but it was already the beginning of the end." Meanwhile, Dominic Perret, Cathay director of cargo, said that he believed he had not fully realised the market potential of the Greater Bay Area (Guangdong-Hong Kong-Macao) or GBA. "Being based in Hong Kong, if we look 10 years ago at how we thought about the Chinese mainland and specifically the Greater Bay Area (GBA), we really thought about it as a key manufacturing base and source of exports. I think what we underestimated and what we're seeing now as a great opportunity it's also become a tremendous market opportunity in its own right." He pointed out the large population and GDP of the GBA, and rapid technology developments in Shenzhen, for example. "We've really seen the Chinese mainland and GBA specifically develop as an import market as well as staying as a significant source of exports," he said. "A lot of our focus has been on connecting cargo through Hong Kong to the wider GBA" through flights and multimodal solutions. Elsewhere, intermodal solutions are now an area that Air Canada Cargo is concentrating on a lot more closely compared to 10 years ago, according to Air Canada's managing director, cargo operations & transformation, Janet Wallace. She explained the carrier's focus used to be more on passenger schedules and supply chain lanes, but this has now shifted to intermodal supply chain networks. Air Canada Cargo has moved "towards supply chain networks fuelled by the freighter capacity, mixing it with the passenger network as well as trucking". She said: "It's very intermodal and all the potential is there in terms of where we can go in the future." However, she added that what she had really underestimated was the scale of work needed to advance digitalisation across the industry. "The thing that I really underestimated was the amount of paper that drives this business and whether there is enough goodwill to get rid of it across all the stakeholders. "We talk about digitalisation, we also talk about AI, and there's a big gap in between the two. How we are going to cross that chasm needs a lot of goodwill from everybody." Jared Azcuy, chief executive of ground handler AGI Group, agreed that technology should have been more of a focus area, alongside growth within the business. "I think there was a time when I felt differently about technology. Today we've fully embraced it and when people say AI, I know what that means," he said. He also remarked: "We've gone through a tremendous amount of growth, in Chicago specifically as well as the rest of the country. There was a time when we were slow to gain additional space for our growing customer base and the growth that they were having. We had to get up to speed on that."

MSN Air Service to utilise Kalé platform at new Guyana cargo station

US ground handler MSN Air Service is expanding its use of Kalé's cargo handling platform in line with plans to add new stations globally. At the Tiaca Air Cargo Forum, MSN Air Service signed a memorandum of understanding (MOU) with Kalé Info Solutions (Kalé) to deploy Galaxy as its standard technology platform at every new station it opens as part of its international expansion. The agreement comes as MSN expands its operations beyond JFK, with a new base at Cheddi Jagan International Airport in Guyana. "MSN is entering an exciting phase of growth, driven by a clear ambition to expand into international markets and strengthen our position in the global air cargo industry," said MSN Air Service group chief executive Manoj Singh. "For us, this expansion is about building a future-ready business, investing in technology and creating the capabilities to compete in an increasingly connected industry. "With Galaxy in use at JFK and committed for deployment across every new station we open, we are building a common technology platform to support operational consistency, visibility and scalability throughout our network." Galaxy supports import, export, and transfer operations through a single cargo handling platform. "International expansion can multiply operational complexity very quickly, and technology should remove that complexity rather than reproduce it at every new station," said Amar More, chief executive and co-founder of Kalé. "MSN is taking the right approach by building a common technology platform into its expansion strategy from the outset, rather than trying to retrofit systems as its network grows. "A common platform gives handlers consistent workflows, real-term visibility, and comparable performance data across locations, allowing them to add new operations without rebuilding their processes from scratch."

FedEx to build on jet engine demand growth with new aerospace product

FedEx has launched a new product to cater for the transport of aircraft engines and aerospace components following its recent wins in the sector. The express giant said its new dedicated engine logistics solution is designed to move aircraft engines and oversized aerospace components with "speed, precision, and reliability". The company said that aerospace organisations are facing increasing maintenance demand, supply chain complexity, and are also under pressure to maximise fleet availability. "The solution helps customers keep critical operations moving while reducing disruptions associated with engine transportation," FedEx explained in a press release. "When an aircraft engine needs to move, every hour matters and every detail counts," said Marcus Balzereit, president, FedEx Logistics. "A delayed engine can impact flight schedules, aircraft availability, maintenance schedules, and operational commitments across the aviation industry. With our own airline DNA, we understand firsthand the complexity and urgency behind keeping aircraft flying." The service includes a dedicated team to manage maindeck engine quotations and oversee shipment execution from origin to destination. They will also ensure regulatory compliance, customs coordination, and end-to-end accountability throughout the shipment lifecycle. FedEx added that its digital platform would streamline quotation generation, automate communications and securely manage shipment documentation. "At a time when the aerospace industry is managing extended lead times, parts shortages, and growing pressure to maintain fleet readiness, reliable transportation of critical assets has become increasingly important," FedEx said. "This integrated approach to engine logistics helps customers strengthen supply chain resilience, improve shipment visibility, and minimise the operational impact of maintenance-related delays." Recent wins The launch of the new aerospace product comes shortly after FedEx highlighted growth in air cargo shipments from traditional parcel customers, including aircraft engines. During the company's third-quarter results call, chief executive Raj Subramaniam said: "Our expanding capabilities across key verticals are enabling us to address more of our customers' logistics needs and unlock airfreight demand from traditionally parcel-centric customers," he said. "For example, we drove a 15-fold increase in aircraft engine moves and won new airfreight business with an AI data centre customer after a more than 40-year largely parcel-centric relationship. "Differentiation is increasingly centred on deep customer relationships and tailored service experiences, positioning us to capture more freight volume as we address customers' needs beyond parcel."