- Achieving net zero carbon emissions by 2050
- Continuing to modernize processes
- Finding better solutions to safely carry lithium batteries
- Making air cargo attractive to new talent
“Air cargo had a stellar year in 2021, achieving $204 billion in revenues,” said Sullivan. “At present, however, social and economic challenges are mounting. The war in Ukraine has disrupted supply chains, jet fuel prices are high and economic volatility has slowed GDP growth. Despite this, there are positive developments. E-commerce continues to grow, COVID restrictions are easing, and high-value specialized cargo products are proving resistant to economic ups-and-downs. Going forward, achieving our net zero commitment, modernizing processes, finding better solutions to safely carry lithium batteries, and making air cargo attractive to new talent are critical.”
The road to net zero
In 2021, the aviation industry agreed a balanced plan to achieve net zero CO2 emissions by 2050. A potential scenario for this is:
- 65% through Sustainable Aviation Fuel (SAF)
- 13% from hydrogen and electric propulsion
- 3% from more efficient operations
- 19% through offsets and eventually through carbon capture, as an out-of-sector solution while technology develops.
“SAF is the key to achieving net zero emissions,” Sullivan noted. “Airlines used every drop that was available in 2021. And it will be the same this year. The challenge is SAF production capacity. The solution is government incentives. With the right incentives, we could see 30 billion liters of SAF by 2030. That would be a tipping point by 2030 toward our net zero ambition of ample SAF quantities at affordable prices.”
Modernization and efficiency
“The challenges of the COVID crisis gave us confidence that we can change and adapt fast. We need to use that confidence to get even closer to the expectations for modernization that our customers have. And we need to be true to air cargo’s unique selling point and move even faster,” said Sullivan.
He highlighted two areas where progress was being made:
- IATA’s ONE Record is making it possible for everyone across the industry’s value chain to see the same information on shipments. Already, 156 companies and four customs authorities are using it.
- IATA Interactive Cargo Guidance provides a common framework so that tracking devices can monitor the quality and accuracy of conditions of time and temperature sensitive goods.
Government support for the modernization agenda through facilitating trade is also critical.
“The Revised Kyoto Convention which brings standardization, technology, predictability, and speed to trade facilitation and the World Customs Organization (WCO) SAFE Framework of standards to facilitate and secure trade are major steps forward in supporting global trade,” said Sullivan. “But we are still seeing far too many diverging requirements by governments in areas that should be harmonized by these two tools. This needs to change quickly so we can continue to support global trade—and its vital contributions to economies and the UN Sustainable Development Goals—with modern and efficient air cargo. Universal adoption and implementation will deliver the greatest benefits.”
Safety, specifically finding better solutions to safely carry lithium batteries was highlighted as a priority for the industry.
“We can be proud of the progress that we are making to further improve the safe handling of lithium batteries,” said Sullivan. “For air cargo, this is a top priority. But even the best regulatory structure means nothing if the rules are not followed. Compliance is an issue with the transport of lithium batteries, particularly with the proliferation of new—and inexperienced—entrants in e-commerce activities.”
IATA called for:
- Regulatory authorities (EASA and FAA) to accelerate development of a test standard that can be used to demonstrate that fire containment pallet covers and fire-resistant containers are capable of withstanding a fire involving lithium batteries.
- Government authorities to step up and take responsibility for stopping rogue producers and exporters of lithium batteries.
- Industry to use technology such as DG Autocheck to more easily and accurately verify that the shipment complies with DG requirements.
To embed best practices on the safe carriage of lithium batteries across the value chain, IATA has expanded its CEIV Lithium Battery program to include airlines and shippers.
“People are the core of any improvement in what air cargo can deliver,” Sullivan suggested. “Sadly, we saw thousands of jobs leave the industry during COVID-19, especially cargo handlers. We are now competing for talent in a very tight job market. And when we do find the right and willing talent, training and longer-than-usual security clearance processes delay their entry into the workforce.”
IATA is calling for governments to accelerate clearance processes, including those for security, as a short-term solution and longer term to do a better job of attracting, onboarding, and retaining talent.
IATA also encouraged more cargo carriers to sign on to the industry-wide 25by2025 initiative to promote gender diversity. “The need to create equal opportunities for the female half of the world’s population is highlighted by the situation today where the industry is struggling to attract sufficient talent,” Sullivan concluded. “Achieving an equal gender balance must be core to any long-term talent strategy.”