At the beginning of April Emirates SkyCargo made a push for a larger slice of the perishables market with a suite of products under the SkyFresh banner. The basic solution targets temperature-tolerant fruits and vegetables, featuring fast ramp transportation and thermal blankets for protection. The second tier aims at temperature-sensitive perishables like cut flowers and fresh fish. This service involves prioritized ground handling and the use of the carrier’s new ventilated cool dollies. At the top of the range is an offering with temperature-controlled containers for perishables that cannot withstand any temperature deviation.
Emirates is no newcomer to the perishables sector. Last year it moved close to 400,000 tonnes of such cargo across its global network. However, management saw a need to strengthen its position in a segment of the market that is drawing mounting competition from other airlines, lured by the promise of higher yields as well as better growth than in the general freight area.
The heightened competition for a slice of the temperature-sensitive market is prompting operators not only to refine their offerings, but also to obtain tangible credentials, like IATA’s CEIV certification for pharmaceuticals transportation.
DHL Global Forwarding is in the middle of a push for the CEIV badge in 30 stations across its global network. The latest step of this campaign saw the CEIV blessing bestowed on the company’s 1,650-square-metre air freight facility in Shanghai in early April.
“The life sciences and healthcare industry increasingly requires more regulatory control over the years, including the transportation and storage of highly sensitive pharmaceutical goods,” said Steve Huang, CEO of DHL Global Forwarding Greater China.
Kuehne + Nagel announced in February that it had received CEIV certification for its entire KN PharmaChain air network that covers 86 locations on all continents.
However, individual efforts may not be enough. According to a growing chorus of industry executives and cold chain gurus, collaboration is the name of the game going forward as the air cargo industry focuses increasingly on perishables while trying to fend off competition from surface transportation. As more and more carriers home in on this segment, the realization is growing that joint solutions are necessary to ensure smooth flows and good visibility all along the supply chain, especially when it comes to the transit points.
The Cool Chain Association’s pharma and biosciences conference last September reverberated with calls for joint action. Panelists noted that competition from ocean carriers has gone up, particularly in the low to medium bracket. One speaker pointed out that for all the solutions deployed so far, deviations in ambient conditions still spoil many pharmaceutical shipments. She cited research that the total losses that the pharma industry suffers in transport amount to $35 billion in a year.
Swiss WorldCargo led the way in collaborative schemes last year with the establishment of a “pharma corridor” between Zurich and Singapore in partnership with local handlers Cargologic and SATS. Days later Luxembourg airport operator lux-Airport and Eastern Air Logistics, which provides handling at Shanghai’s Pudong and Hongqiao airports, announced an alliance aimed at developing pharma flows between the two regions.
The flower industry saw a joint push by Royal Flora Holland, Amsterdam Schiphol airport and Air France KLM Martinair Cargo last autumn to cement Holland’s position as the world’s pre-eminent flower hub through the Holland Flower Alliance. According to Marcel de Nooijer, executive vice president of AF-KL-MP Cargo, the alliance will focus on research into improving the cold chain for flowers as well as advocacy and promotion. Part of the joint effort will be the creation of a customized cargo flight data system to plan shipments, manage supply chain activities and monitor trends.
Schiphol airport is also involved in another research initiative for perishable cargo – this one focusing on pharmaceuticals. Together with AF-KL-MP and other members of the Pharma Gateway Amsterdam Community and supported by two Dutch universities, Schiphol intends to scrutinize data of pharma shipments going through the gateway and use the results to design a model to alert shippers of issues with their consignment.
“We are listening to shippers’ needs and working to improve transparency and cooperation in the pharma supply chain,” said Jonas van Steklenburg, the airport’s director of cargo.
By Ian Putzger
Air Freight Correspondent | Toronto
