At the beginning of October, Delta Cargo officially expanded its product portfolio with the addition of Equation Critical, a new service for international shipments with a high degree of urgency. With a 90-minute cut-off and backed with GPS tracking, Equation Critical shipments are loaded on the next available flight and move at the highest priority through the US airline’s network.

 

The move pushed a successful product launched earlier in the year into the international arena. It was built on DASH Critical, a domestic offering that Delta introduced in the US market.

 

“Following the successful launch and roll-out of DASH Critical in the United States, we have taken that formula to the next level and introduced our new Equation Critical service for international shipments which have the highest boarding priority in our network,” said Shawn Cole, vice-president, Delta Cargo. “With GPS tracking and 100% service level guarantee, we are introducing a service that ensures important international shipments are in the right place at the right time, throughout the shipping process.”

 

At this point the service is available out of three origin points (Atlanta, Savannah and London) to seven destinations, one of them (Seoul) in Asia. The airline plans to roll it out in other markets subject to demand and regulatory approvals.

 

Delta is one of a number of carriers that have announced additions or refinements to their service portfolio this year. Two elements are playing significant roles in airlines’ push in this direction.

 

The first is improved technology, like the deployment of GPS tracking. Delta and Cathay Pacific are currently experimenting with Bluetooth technology for real-time, end-to-end tracking of containers, which will likely give rise to further service refinements.

 

AirBridgeCargo and strategic partner CargoLogicAir have teamed up with SITAONAIR to test the technology provider’s platform based on Internet of Things to monitor ambient conditions of climate-sensitive shipments during flight. If successful, this could be a milestone for the monitoring of high-end pharmaceutical and life sciences shipments in the air.

 

“Digital pharma is a priority innovation focus for us. With genuine Internet of Things capabilities, enabled for us onboard by SITAONAIR, our digital pharma service is born, ensuring we can provide the best transportation conditions inflight for customers’ invaluable cargo,” said Sergey Lazarev, general director of AirBridgeCargo.

 

A second factor is the rise of express traffic triggered by the delivery time expectations in e-commerce. Airlines find that they are in an advantageous position to offer faster service than the express carriers.

 

“We are in the express business,” said Tim Strauss, vice-president of cargo at Air Canada, adding that his outfit is a full day faster than the integrators flying cargo between international points and its home market.

 

E-commerce has filled cargo holds, which has helped drive up yields, but it is no guarantee of better returns. Hauling large volumes of parcels often commands modest rates, especially when it comes to large e-commerce players like Amazon that are fiercely cost-conscious, and the density usually is not good.

 

Stan Wraight, president and CEO of Strategic Aviation Solutions International, urges airlines to work together with handling companies to establish processes on the ground that can support better express services that can command a premium.

 

The rise in global perishables flows is also prompting carriers to try and stand out with special offerings. In September Etihad Cargo unveiled FreshForward, a service designed to guarantee smooth passage for this traffic through the carrier’s network. This traffic has priority for transfers from aircraft to a dedicated centre and subsequently to reefer trucks for final delivery.

 

The new offering is the latest step in a broad revision of the airline’s service that is shifting more towards premium product segments. It follows the launch of special services targeting the automotive and the arts & music sectors.

 

Etihad’s portfolio transformation indicates that to some extent the interest in special services predates the rise of e-commerce and the digitization that has helped pave the way for better monitoring and shipment management. The global downturn that started in 2009 took a heavy toll on yields, and special services offered niches with better margins.

 

 

One sector that has drawn much attention is animal transportation. Much of this segment – for example horses, zoo animals, tropical fish or baby chicks – has seen stable growth, but some sectors are going strong. Livestock shipments are on the rise, particularly to markets where a growing middle class is using its improved purchasing power to eat better meats. In some cases this is to rapidly establish new herds in these areas.

 

Pet traffic has increased significantly, although a growing number of airlines have imposed bans on animals that could suffer from stress during flight, with possible lethal consequences. Mishaps in pet transportation invariably kick up a firestorm of criticism on social media that tarnish the image of the hapless carrier.

 

On the other hand, carrying pets carries twin benefits for carriers – premium yields for the cargo division and paying passengers in the cabin above, one airline executive noted privately.

 

Delta is looking to up its game in this segment. It recently signed a partnership agreement with CarePod, a pet technology start-up whose range of smart products will help the airline do a better job in flying pets and monitoring their progress.

 

 

By Ian Putzger

Air Freight Correspondent | Toronto