IATA CEO Discusses Air Cargo Industry Priorities
“Air cargo is vital to the global economy, transporting more than $5 trillion worth of goods annually, or more than a third of world trade by value,” International Air Transport Association Director General and CEO Tony Tyler at the World Cargo Symposium in Doha, Qatar. But the last two years have been difficult for the air cargo industry, he said, noting a 2 percent decline in both air cargo demand and yields last year. “There are early signs that an upturn is on the way,” said Tyler. “To seize the opportunity we must strengthen the industry’s competitiveness.”
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Tyler outlined four priorities for the air cargo industry:
Modernize processes. “Transitioning to a paperless operating environment is critical to improving air cargo’s competitiveness,” IATA said. The group is committed to implementing the e-Air Waybill (e-AWB), targeting 20 percent implementation by the end of 2013 and 100% by the end of 2015. The e-AWB penetration was 6.8% at the end of 2012. The International Federation of Freight Forwarders (FIATA) and the Global Shippers Forum have also agreed to push forward the digitalization of other freight documents.
Secure supply chain. IATA said governments should implement mutually-recognized secure supply chain regimes. The Secure Freight initiative is an example that is currently being piloted in eight locations worldwide. The first was Malaysia, where studies have estimated that Secure Freight brings an economic benefit of $1-$2 billion over five years. Tyler noted progress with the US Air Cargo Advanced Screening (ACAS) program, the EU’s Air Cargo or Mail Carrier operating into the European Union from a Third Country Airport ( ACC3) security directive and the e-Cargo Security Declaration (e-CSD).
Follow dangerous goods regulations. Safety is the industry’s top priority, IATA said. Recent concerns over lithium batteries transported as air cargo have reinforced the need for greater education and communication over the rules for shipping these items. “We don’t need more regulation. But we need to ensure that the regulations we have are followed,” Tyler said.
Environmental sustainability. The air cargo industry is committed to improving fuel efficiency by 1.5 percent annually by 2020, capping CO2 emissions from 2020 with carbon-neutral growth (CNG2020), and cutting net emissions in half by 2050 compared to 2005, Tyler said. The International Civil Aviation Organization is leading efforts to develop market-based measures (MBMs) needed to help aviation reach its CNG2020 goal.
Tyler also said that work with FIATA to modernize the Cargo Agency Program, which “will put the airline-freight forwarder relationship on a stronger footing,” was progressing well. A series of proposals will be submitted to the Cargo Agency Conference later in the year, he said.