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Aircargopedia Newsblast: September 2022! |
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| 19th September 2022 |
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Dear Air Cargo Professional:
Growth, trends and forecast with Smart Airport Markets - by Pat from SUNTEC.
Read more about Anti-Economics in this article by Peter Canellis, Professor of Management, Vaughn College.
In more World Air Cargo news, Air Canada becomes first airline to receive IATA Recertification for the safe transportation of Live Animals.
Emirates and United expand market presence through new agreement. Register for transport logistic Americas & air cargo forum Miami |
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D.J. Ghosh
President & Publisher
AIRCARGOPEDIA
WWW.AIRCARGOPEDIA.COM
”The Complete Encyclopedia for the Air Cargo Professional & Investor”
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Smart Airport Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The Smart Airport Market is expected to register a CAGR of more than 6% during the forecast period (2022-2027). Following the advent of the COVID-19 pandemic, the demand for smart airport technologies has increased due to the investments toward the integration of advanced technologies such as self-service check-in kiosks, biometric kiosks, and touchless solutions, among others. Furthermore, due to the lower passenger traffic levels at the airports, the airport operators could easily integrate and implement new advanced technologies.
The recovery in the passenger traffic in the coming years, the implementation of advanced technologies like IT, electronics and control systems, robotics, data analytics, etc., in airports for efficient management at a reduced cost, and the need to enhance the passenger experience in airports are expected to accelerate the growth of the smart airport market during the forecast period.
The increasing investments in the construction of new greenfield airports and the expansion of existing airports around the world to cater to the anticipated rebound in passenger traffic are expected to majorly drive the demand for smart airport technologies in the coming years.
Key Market Trends
The Passenger, Cargo and Baggage, and Ground Handling Segment Dominated the Market in 2021
The passenger, cargo and baggage, and ground handling segment currently has the highest market share, and it is expected to continue its dominance during the forecast period. The rapid growth of passenger traffic has increased the pressure on airport operators to augment their passenger handling capacity and integrate digital solutions to regulate passenger flow, cargo, and baggage handling capabilities at the airports. For instance, in May 2022, Veovo partnered with Aeropuertos Argentina 2000, an operator of Argentina’s airports, to integrate new passenger flow solutions at Aeroparque Jorge Newbery (AEP) and Aeropuerto Internacional Ezeiza (EZE). The company implemented Veovo’s Passenger Predictability solution, AI-powered cloud software, to optimize operations and enhance passenger flow in various processes, such as baggage hall, security, immigration, and border control. Similarly, airports are also installing automated baggage handling systems to ease the pressure on airport ground support personnel, helping airports, airlines, and ground handlers achieve passenger satisfaction. The majority of the airports in Europe and Asia have already installed automated baggage handling systems. On this note, in June 2021, BEUMER Group was selected by Avinor, the airport operator of Oslo Airport, to replace the existing baggage system with a CrisBag tote-based baggage handling system. Under the contract, the company will integrate and operate the new baggage handling systems that will process Departure, arrival, and transfer baggage. The planned investments in passenger and baggage handling systems are expected to propel the growth of this segment in the coming years.
The Asia-Pacific Region is Expected to Witness the Highest Growth During the Forecast Period
The Asia-Pacific region will experience significant growth due to robust investments toward constructing new airports and expanding existing airports. Over the past few years, there has been a rapid increase in passenger traffic handled by airports in countries like China, India, Japan, and South Korea, among others. Due to this, the government and airport authorities in the region have announced significant investments in the construction and expansion of airports. For instance, in April 2022, the Ministry of Land, Infrastructure, and Transport of South Korea announced its plans to invest KRW 13.7 trillion (USD 10.97 billion) in the construction of a new airport in Gadeok Island. The airport is expected to be an offshore airport (constructed on a floating structure at sea) and will cater to the growing air traffic demand in the country's southeast region. Furthermore, to efficiently operate the airports and provide uninterrupted services to the passengers, the airports in the region have also integrated smart airport solutions. In this regard, in February 2021, Changi Airport Group selected Genetec Inc. to upgrade and enhance its security systems. Under the contract, the company will install Genetec Security Center. This integrated security platform blends IP security systems in a single intuitive interface, focusing on the video surveillance system across its terminals. The contract is expected to be completed by the end of 2023. Such modernization of airport infrastructure with smart airport solutions is expected to accelerate the market growth in this region during the forecast period.
Competitive Landscape
The market for smart airports is highly fragmented, with many players providing advanced smart technology solutions. Some of the major players in the smart airport market are Raytheon Technologies Corporation, SITA, Honeywell International Inc., Siemens AG, and Cisco Systems Inc. Post pandemic, companies partnered with various airlines, governments, and airport authorities around the world to provide advanced technology solutions. For instance, in August 2021, Xovis announced that the company installed 3D Sensors and software at the transfer area located inside the new customs and security screening facilities of Toronto Pearson International Airport. Integrating AI sensor technology at the airport is expected to affect passenger behavior, calculate waiting times, queue lengths, and social distancing to keep airport passengers and employees safe. In addition to this, the companies have also invested in the development of advanced products to increase their shares in the market. The development of such products that promote contactless processing of the airports is expected to help the companies increase their geographic presence in the coming years.
Pat Praveen
SUTEC LLC.
suntecrm.com
For any questions, please contact Pat at pat@suntecrm.com
For more info please visit www.suntecrm.com
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Anti-Economics: California Tries to
Eliminate Independent Trucking
“Without Trucks, America Stops!”
We’ve all heard this slogan and have probably thought to ourselves: “well, sure –
that’s just common sense”. We could also modify the slogan by applying the
most basic economic principle of supply and demand to read:
“Without Enough Trucks, Everything is More Expensive!”
According to a recent article in Logistics Management, legislators in California
are trying to make life more expensive for all of us by rendering independent
trucking essentially illegal.
The rationale for doing this is that independent truckers do not, it is claimed,
“work outside the usual course of the hiring entity’s business” which is part of a
three-pronged litmus test to determine whether or not an individual can claim to
be an independent contractor rather than an employee. If the law is upheld and
independent truckers are not granted exemption, the entire operation of trucking
as we know it will change - for the more expensive.
In an earlier article in this series, I explained how the 19
th
-century French
economist, Claude-Frédéric Bastiat, answered the question: “How will Paris be
Fed?”
2
. His answer could be found in the concepts developed and articulated by
Adam Smith, the Scottish economist and philosopher who spoke of an “Invisible
Hand” that orchestrates the forces of supply and demand for all goods and
services in a market economy to “make it happen”.
I believe that nowhere in our contemporary economic environment can we find
the “Invisible Hand” concept more efficiently and effectively at work than in the
relationship that independent truckers have with the shippers, carriers, and
transportation brokers that hire them to move goods.
About 350,000 owner-operators, comprising approximately 9 percent of all
truckers on the road
3
, provide the capacity adjustments when and where needed
to augment the capacity of the large and medium-sized trucking companies’
fleets. If they are forced to become employees of existing trucking companies or
bear the additional overhead and reporting burdens that come with incorporating
as a “standard” trucking company, many will exit the industry.
Another economic perspective on this situation is that the increased costs
brought to bear on independent truckers is essentially a tax. From the
macroeconomic point of view, if society wants more of something (e.g.,
education), it might be subsidized. Alternatively, if society wants less of
something (e.g., cigarette consumption), it will be taxed.
By taxing independent trucking, the economic signal from doing so is that we
want less trucking capacity. That will, of course, make diminished trucking
capacity more expensive.
What is the “right” level of trucking capacity and what is its “right price”? The
“invisible hand” of the market figures this out. Every day. No legislature is
capable of doing this effectively.
Yours in Supply Chain,
Peter Canellis
Regards,
Peter Canellis
Professor of Management
Vaughn College of Aeronautics and Technology
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Air Canada Becomes First Airline to Receive IATA Recertification for the Safe Transportation of Live Animals
Montreal - Air Canada announced earlier this month that it has become the first airline to be re-certified by the International Air Transport Association (“IATA”) for the safe transport of live animals by Air Canada Cargo. IATA awarded Air Canada Cargo with the Center of Excellence for Independent Validators for Live Animals Logistics (“CEIV Live Animals”) recertification after the successful completion of the verification process.
Jason Berry, Vice President of Cargo at Air Canada stated, "We are very proud to be recognized for our work in operating to the highest global standards for the worldwide transport of all live animals, and being the first airline to be re-certificated continues to position Air Canada Cargo as an industry leader. Every year, we expertly and safely handle thousands of complex shipments, from rescued dogs, endangered animals transported in conservation efforts, and of course family pets. Air Canada Cargo's dedicated employees handling animals are specially-trained, and I thank them for their diligence in treating all animals as precious cargo while in our care."
In 2018, Air Canada was the first airline to receive the CEIV Live Animals certification, which is a standardized global certification program to improve and reinforce the safety and welfare of animals traveling by air.
As part of the recertification process, a thorough audit was conducted by IATA's specialists, who reviewed Air Canada Cargo's live animal transport policies and procedures. In 2021, Air Canada Cargo safely transported over 11,500 different animal shipments.
Kevin Pflug
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Emirates and United Expand Market Presence Through New Agreement
CHICAGO and DUBAI, September 15, 2022
Emirates and United have announced a historic commercial agreement that will enhance each airline’s network and give their customers easier access to hundreds of new destinations* within the United States and around the world.
From November, Emirates customers flying into Chicago, San Francisco, and Houston - three of the biggest business hubs in the U.S – will be able to easily connect onto United flights to and from nearly 200 cities across the Americas on a single ticket.
At the eight other U.S. airports served by Emirates – Boston, Dallas, LA, Miami, JFK, Orlando, Seattle and Washington DC – both airlines will have an interline arrangement in place.
United will launch a new direct flight between Newark and Dubai starting in March 2023 – from there, customers will be able to travel on Emirates or its sister airline flydubai to more than 100 cities. Tickets for United’s new Dubai flight are now on sale.
Emirates and United announced their agreement at a ceremonial event at Dulles International Airport, hosted by United CEO Scott Kirby and Emirates President Sir Tim Clark, featuring United and Emirates Boeing 777-300ER aircraft and flight crews from each carrier.
Sir Tim Clark, President Emirates Airline said: "Two of the biggest, and best-known airlines in the world are joining hands to fly people better to more places, at a time when travel demand is rebounding with a vengeance. It’s a significant partnership that will unlock tremendous consumer benefit and bring the United Arab Emirates and the United States even closer. We welcome United’s return to Dubai next year, where our hub Dubai essentially becomes a gateway for United to reach Asia, Africa and the Middle East via the combined network of Emirates and flydubai. We look forward to developing our partnership with United for the long term."
Scott Kirby, CEO of United Airlines said: "This agreement unites two iconic, flag carrier airlines who share a common commitment to creating the best customer experience in the skies. United’s new flight to Dubai and our complementary networks will make global travel easier for millions of our customers, helping boost local economies and strengthen cultural ties. This is a proud moment for both United and Emirates employees, and I look forward to our journey together."
Customers of both airlines can soon book these connecting flights on a single ticket – making check-in and luggage transfer faster and easier. For example – travelers will be able to visit United.com or use the United app to book a flight from New York/Newark to Karachi, Pakistan or go to Emirates.com to book a flight from Dubai to Atlanta or Honolulu.
This agreement will also give the loyalty program members of both airlines more opportunities for more rewards: Emirates Skywards members can soon earn miles when they travel on United operated flights, and United Mileage Plus members flying on United’s New York/Newark to Dubai flight will be able to earn and redeem miles when connecting beyond on Emirates and flydubai.
Eligible customers travelling on codeshare flights will also soon enjoy access to Emirates and United lounges. More details on frequent flyer awards and lounge sharing benefits will be communicated in the coming weeks.
Both airlines have recently announced significant investments in the customer experience. Emirates will retrofit more than 120 aircraft as part of a $2 billion effort that includes elevated meal choices, a brand-new vegan menu, a ‘cinema in the sky’ experience, cabin interior upgrades, and sustainable choices. At United, the airline will add 500 new Boeing and Airbus aircraft to its fleet with a focus on a new signature interior that includes seat-back screens in every seat, larger overhead bins, Bluetooth connectivity throughout, and the industry’s fastest available in-flight WiFi.
* Codeshare activities and United’s new flight to Dubai are subject to government approvals.
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transport logistic Americas & air cargo forum Miami
Visitor registrations at a high level
Munich, September 2022
• FedEx, Rhenus, ACL Airshop, UPS, Miami Airport: Five well-known sponsors
make the accompanying conference program possible
• 63% of registrations at first and second management levels
Core topics digitization, sustainability and resilience
Registration for the air cargo forum Miami and transport logistic Americas
trade show and conference has been open since mid-August. The level of
initial registrations exceeds expectations. Around two thirds are decision-
makers from the first and second management levels. The conference and
trade show will be held Nov. 8-10, 2022, at the Miami Beach Convention
Center. A total of 5,000 attendees and 200 exhibitors are expected.
In the three-day accompanying conference program, partners from science,
business and the media currently occupy 22 slots with presentations and
workshops. More are in the planning stage. Five logistics brands are sponsoring
the program. Rhenus and FedEx are each taking over one of the first two
conference days in full. UPS, ACL Airshop and Miami Airport are supporting
individual sessions. That is why the conference is complimentary for visitors.
"Education is key and the logistics event in Miami is a unique opportunity. Over
all three days, attendees will be able to gain essential knowledge for our future
and discuss with top-notch speakers on-site. We are pleased to help facilitate this
world-class program." said Steve Townes, CEO at ACL Airshop.
Program with themes of our time
Sustainability, digitization and resilience run through the conference. People,
trends, and innovations are the focus of the sessions. Among others, high-
ranking industry experts discuss in the CEO Panel. TIACA awards the 2022 Hall
of Fame Inductee in one session. From career opportunities in air freight and
logistics to supply chains that save lives, presentations show what people in the
industry are accomplishing. Across all modes of transport, contributions from
partners such as BVL -The Global Supply Chain Network, Your German Logistics
and the news platform Cargo Forwarder Global will highlight various trends in
global logistics chains. On the subject of digitalization, Fraunhofer reports on the "test field air cargo" in Frankfurt and the Beacon Council calls on startups in the
Florida technology region. TIACA highlights pioneering work in sustainability with
updates from Net Zero to Blue Sky and the presentation of the Sustainability
Award.
More information about the fair at https://www.aircargoforum.org/ .
The list of exhibitors and the hall plan can be found at
https://www.aircargoforum.org/tradefair/for-exhibitors/#showfloor.
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