And where air cargo aircraft comes down to Earth is getting attention. Airports are investing in sustainable infrastructure (such as solar power, and “green taxiways” for more efficient movement) and addressing air cargo environmental concerns – as “a wave of innovation is taking flight.” The STAT Trade Times article, which is one of our Top Stories, is a comprehensive wrap up of the state of the air cargo industry (negatives and positive) and related players (regulators, industry associations, airport managers, aircraft manufacturers, and other stakeholders) involved in “sustainable innovation.” Our Top Stories also include two reports from McKinsey & Company examining the air cargo industry. In its report “Air freight 2025: Agility, speed, and partnerships,” McKinsey noted the air cargo sector “all too often clings to legacy technologies” and newer entrants can easily disrupt traditional approaches. Example: Amazon, a major innovator in logistics, is now building an air cargo hub in Cincinnati, Ohio, where a 3-million square foot facility will have 100 aircraft parking spaces, with discussions about acquiring many more air freighters. In a rapidly-changing operating environment, McKinsey’s Ludwig Hausmann, Matthiew Pelissie du Rausas, and Mathieu Weber say air cargo carriers will need great agility, speed, and deeper alliances, to provide better service and higher quality and transparency, as shippers re-design global production networks and such innovations as advanced robotics, drones, and AI influence the industry. What about better “greening” of air cargo? There’s opportunity there, according to McKinsey’s Elliott Tinnes, Fernando Perez, and Matthew Kandel, exploring the challenges of “Decarbonizing logistics, Charting the path ahead.” Surveying 250 shippers for their views on lower carbon shipping, they found that the majority of companies are now integrating “green shipping” into their logistics programs, with 70% indicating they would pay more for green shipping. The overall demand for green logistics could reach US$350 billion by 2030. More reasons why the air cargo sector needs to innovate to reduce carbon emissions. The G&A Institute Climate Team has developed tools and systems to help companies with climate related challenges, opportunities and emissions calculations relevant to cargo and logistics. If you’d like more information please contact us. We are closely monitoring the air cargo sector and global logistics trends, and we will continue to share progress (and lack of) through our various communications channels. |
