As the air cargo industry changes, the International Air Transport Association (IATA) said the industry must focus on sustainability, digitalization, and safety moving forward.
The remarks on how the industry can maintain momentum in the face of a challenging operating environment came during the 16th World Cargo Symposium in Istanbul Tuesday.
“Air cargo is a different industry than the one that entered the pandemic. Revenues are greater than they were pre-pandemic,” Brendan Sullivan, IATA’s Global Head of Cargo, said. “Yields are higher. The world learned how critical supply chains are. And 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.”
Sullivan said the war in Ukraine, volatile exchange rates and interest rates, and job growth are all critical economic factors facing the industry. He said that navigating the current atmosphere means continuing to focus on those three factors.
The industry should prioritize sustainability through its goal of net zero emissions by 2050, a commitment the industry adopted in 2021. The use of sustainable aviation fuel would provide the industry with carbon abatement, but more should be done, he said.
“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,” he said. “Through incentivizing production, we could see 30 billion liters of SAF available by 2030. 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.”
Additionally, IATA called for supporting effective carbon calculations and offsetting through accurate and standardized emissions calculation methodology; expanding the IATA Environmental assessment to airports, cargo handling facilities, freight forwarders, and ramp handlers; and developing environmental, social, and governance-related metrics.
The group also called for improved efficiency in air cargo through digitalization by achieving 100 percent airline capability of ONE record by 2026, ensuring digital standards supporting the global supply chain are in place, and ensuring processes within air cargo shipping are increasingly digitized.
Lastly, IATA called for a continued focus on safety.
“Alongside sustainability and efficiency is safety,” Sullivan said. “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.”
Air cargo should focus on stopping rogue shippers, accelerating the development of fire-resistant aircraft containers for lithium batteries, and ensuring governments recognize a single standard for lithium battery-powered vehicles.