The International Air Transport Association (IATA) called on airlines and their partners in the air cargo supply chain to work together to make air cargo more competitive and address the challenges of safety, security and sustainability.
“Air cargo is vital to the global economy, transporting more than $5 trillion worth of goods annually, or more than a third of world trade by value. And for airlines, it accounts for about 12% of industry revenues. But, like the rest of the airline industry, air cargo is a tough business. The last two years have been particularly difficult. Last year saw a 2% decline in both air cargo demand and yields. There are early signs that an upturn is on the way. To seize the opportunity we must strengthen the industry’s competitiveness,” said Tony Tyler, IATA’s Director General and CEO.
Speaking at the World Cargo Symposium in Doha, Qatar, Tyler outlined key industry priorities:
The e-AWB penetration was 6.8% at the end of 2012. “Our e-AWB targets are ambitious. The establishment of the Multilateral e-AWB Agreement will play an important role in boosting implementation. And we have the success stories of several airlines which have implemented 100% e-AWB policies in their hub markets proving that progress is possible,” said Tyler. The industry is also working with governments for the progressive adoption and implementation of the Montreal Convention 1999 (MC99) which provides the legal framework for electronic documentation.
2013 is a crucial year for aviation. The International Civil Aviation Organization is leading efforts to develop a global solution for the market-based measures (MBMs) needed to help aviation reach its CNG2020 goal. “Finding agreement among governments on a global approach will not be easy. The industry is united and doing all that it can to help. At the direction of our Board of Governors we are working through our governance processes to achieve an industry agreement on how to share the burden of CNG2020. And the efforts of the cargo community to develop a common carbon calculator will assist in the dialogue and further the transparency that is a cornerstone of our approach to sustainability. And we continue to remind governments that their role extends beyond MBMs. Their role in supporting initiatives such as implementing the Single European Sky and the commercialization of sustainable biofuels for aviation is critical to the industry’s long-term sustainability,” said Tyler.
“Air cargo plays a critical role in driving economic growth and development. This is not always fully appreciated by governments. That is why it is essential that the supply chain speaks with a single voice to articulate policies that support its success. I hope that GACAG will facilitate a joint action plan to focus on persuading key governments of the need to put cargo at the heart of their economic strategies,” said Tyler.
Tyler also announced that work with FIATA to modernize the Cargo Agency Program, which will put the airline-freight forwarder relationship on a stronger footing, was making good progress. A series of proposals will be submitted to the Cargo Agency Conference later in the year. “These will help the program to reflect the reality of the principal-to-principal relationship that exists in over 70% of transactions performed between airlines and their forwarding partners. And it reflects the changing rules and obligations linked to liabilities between the partners,” said Tyler.
Date: Mar 12, 2013