Monday 26th Sep 2016 - Logistics Manager

IATA chief calls for action on key air cargo issues

The International Air Transport Association has called for  action on three  aspects of the air cargo business: transitioning to paperless freight processes, a focus on global handling standards for pharmaceutical freight, and tough action to ensure the continued safe transport of lithium batteries by air.

“Business improvement will only come by constantly improving the value of cargo. There is a long haul ahead to recapture lost revenues, nevertheless the prospects for the future are bright because the industry is really starting to act strategically and plan for the future,” said director general and CEO Tony Tyler at the opening of the 9th World Cargo Symposium in Shanghai, China.

The transition to paperless freight finally saw lift-off in 2014, as the industry exceeded 24 per cent global e-Air Waybill (e-AWB) penetration.

“We still have work to do to help businesses transition, but there has been a big change in the mentality of the industry. We can now look ahead and plan for the digitization of other air cargo documents, through a collaborative industry approach,” said Tyler. The industry is aiming to achieve 45 per cent e-AWB penetration in 2015 and 80 per cent in the following year.

Global handling standards for pharmaceutical goods will be an essential step towards air cargo improving its share of the $60 billion a year pharma logistics market. The industry needs to meet customer demands for the integrity of their goods, while complying with increasing amounts of regulation from global authorities.

Tyler warned: “If these expectations are not met, air cargo risks losing the opportunity presented by this huge market. Modal competitors to air are working hard to win this business.”

To help foster air cargo’s competitiveness in this growing segment, IATA has developed a new initiative, the Centre of Excellence for Independent Validation in Pharmaceutical Logistics (CEIV Pharma). This assesses and validates cool-chain processes and provides training to guarantee that they comply with all applicable standards and regulatory requirements.

On lithium batteries, Tyler said robust regulations and guidance exist, but these are not being fully adhered to by all shippers. China is the largest producer of lithium batteries and therefore a key market. IATA has developed the Lithium Battery Shipping Guidelines in Chinese to raise awareness on this vital issue, but the issue is also one for government authorities.

“Regulators need to step up. The industry is doing what it can, but without oversight, surveillance and where necessary, enforcement, compliance at the source of the shipment will be limited,” said Tyler.