COLD CHAIN F


AIR CARG O WEEK


UNITED CARGO TAPS INTO APAC GROWTH


BY Edward HARDY A


sia-Pacific (APAC) has emerged as a leader in the global airfreight industry, outpacing other regions in recent traffic figures, attributed to several factors: the decentralisation of manufacturing from traditional hubs and the region’s ability to quickly adapt to shifting global demands.


Several factors are expected to define the adaptability of the APAC’s


success for the following five-years: Safety and regulatory: With such a high volume of lithium battery


shipments, and the industry needs to first and foremost ensure that the finished goods are moved in a safe and secure manner. No matter the packaging materials or handling procedures, the industry requires the regulators, carriers, and shippers need to define the best practices to continue moving the finished products. Infrastructure readiness: Capacity review has been ongoing in the


APAC airports for ten years ago. Expansion of facilities and runway constraints have led to construction of suburban Airports sometimes one to two hours away from the current airport. Small packages will require intricate sortation systems, reducing the need for manual labour. For


the last-mile delivery, provisioning for the road-feeder


network planning also needs to be conducted in unison. Consumer spending and e-commerce growth: this will define the


direction and the speed service is required. For ease of convenience, consumers’ expectation will be to almost receive the finished product immediately, such is the case for meal-ordering nowadays. Technological advances paired with Infrastructure development will ensure the growth is coordinated and also fill the gaps for necessary equipment and lanes.


Expansion opportunity Airlines like United Airlines have recognised the importance of this region, further expanding their operations to capitalise on its growing airfreight potential. “Asia much like the rest of the world was resilient in continuing to


move essential goods across the regions. Finding solutions quick to market, working with partnerships and the industry across the different regions, enabled the continuation of the supply chain,” Lawrence Chee, Director Cargo Operations – APAC at United Cargo, stated. “We have continued efforts to connect the logistics chain, in hopes


of moving goods from origin to destination.. “Another objective of United has been to match the aircraft type with the passenger profile. That is the reason you see us utilising the


Supply chain strategies Even before the Covid-19 pandemic, the manufacturing and assembly sectors in Southeast Asia were on the rise, as companies sought to diversify away


from traditional business centres. This trend has


accelerated post-Covid, with United focusing on connecting logistics chains to ensure smooth movement of goods across borders. “In the booming e-commerce market, purchasing a product on an online


platform means it can be delivered half-way across the globe within 48- hours, and if not to one’s liking, fully refundable and returnable,” Chee explained. “It is such demand for accuracy and efficiency that has driven the


industry and the market to adapt with solutions. “With the geopolitical tensions in the Europe and the Middle East,


while Asia benefited with the immense volumes, it also meant we were more selective in the lanes we could fly, and the amount of payload per flight due to the additional fuel. This also led to higher volumes than expected at transfer hubs, putting strain on resources. Infrastructure had to be reviewed, and adjustments made to existing processes and procedures.”


Digital role Enhanced transparency of rates and revenue options allows companies to explore new, less congested routes. While transparency of rates has given the customer options to review and benchmark, it does not account for the diverse operating environment of different carriers – fuel and landing fees, crew resources, operating costs at various airports. “For some price-sensitive customers, as a carrier it’s more important


to build a quality-driven supply chain, to ensure a sustainable business,” Chee continued. “Digitalisation has also allowed for ease of tracking and transparency,


but in many cases uncoordinated and unaligned. “Different stakeholders are aiming for


the same objectives, and


provisioning for similar versions of the information. So one would argue does there need to be a single-provider? Definitely not, as each has different characteristics moulded towards the customers’ preferences.”


www.aircargoweek.com 7 OCTOBER 2024 ACW


“Asia much like the rest of the world


was resilient in continuing to


move essential goods across the regions.”


specific aircraft types with the different intra-Asia routes and then utilising widebody aircraft for Trans-Pacific routes. “Furthermore, there is a component of maintenance facilities at our


domestic hubs, and consolidating the workforce to maintain particular types of aircraft at particular stations.”


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