The International Air Transport Association (IATA) highlighted sustainability, digitalisation, and safety as the top priorities of the air cargo industry to maintain its growth momentum against the backdrop of a challenging operating environment.
These priorities were outlined during the opening of the 16th World Cargo Symposium (WCS) in Istanbul, Turkey.
"Air cargo is a different industry than the one that entered the pandemic. Revenues are greater than they were pre-pandemic. Yields are higher. The world learned how critical supply chains are," said Brendan Sullivan, IATA's Global Head of Cargo, adding that the contribution of air cargo to the bottom line of airlines is "more evident than ever."
"Yet, we are still linked to the business cycle and global events. So, the war in Ukraine, and uncertainty over where critical economic factors like interest rates, exchange rates and job growth are concerns that are real to the industry today. As we navigate the current situation, air cargo's priorities have not changed, we need to continue to focus on sustainability, digitalization, and safety," IATA's head of cargo added.
Sustainability focus
In terms of sustainability, IATA noted that this is a "critical priority" and the "aviation industry's license to do business" — as it noted that last October, at the 41st ICAO Assembly, governments agreed to the Long-Term Aspirational Goal (LTAG) of net zero carbon emissions by 2050, in line with the industry's commitment adopted in 2021.
In particular, IATA said Sustainable Aviation Fuel (SAF) is critical to achieving this goal with 65% of carbon abatement will come from SAF. However, it noted that production levels remain challenging as it called for government incentives for production.
"SAF is being produced. And every single drop is being used. The problem is that the quantities are small. The solution is government policy incentives. Through incentivizing production, we could see 30 billion litres of SAF available by 2030," Sullivan said.
"That will still be far from where we need to be. But it would be a clear tipping point towards our net zero ambition of ample SAF quantities at affordable prices," he added.
IATA noted that air cargo also needs to continuously improve its efficiency — and the area with "greatest potential" is digitalization.
It said that IATA's goals in this respect include the 100% airline capability of ONE Record by January 2026, which would replace the many data standards used for transport documents with a single record for every shipment; and ensuring digital standards are in place to support the global supply chain.
IATA is also looking to ensure compliance and support for customs, trade facilitation and other government processes that are increasingly digitalized.
"Alongside sustainability and efficiency is safety. The agenda for air cargo continues to be dominated by lithium batteries. A lot has been done. But, quite honestly, it is still not enough," Sullivan added.
In terms of safety, he noted that the three safety priorities for air cargo are stopping rogue shippers by enjoining civil aviation authorities to take strong action against shippers not declaring lithium batteries in cargo or mail shipments; and accelerating the development of a test standard for fire-resistant aircraft containers with a fire involving lithium batteries.
Sullivan noted that ensuring recognition from governments of the single standard to identify all lithium battery-powered vehicles which comes into effect from January 1, 2025.
"Air cargo is a critically important industry. It helps build a better future for the people of the world. It's an industry that saves lives, delivering aid and relief to those in need. The industry mobilized to support those affected by the earthquakes in Syria and Türkiye," the IATA global head of cargo said.
"Working together to ensure that air cargo remains a reliable and efficient means of providing support to those in need, while simultaneously strengthening our global supply chains and contributing to the sustainable development of our economies is essential," Sullivan added.
