Recruitment, freighter capacity shortages and cyber attacks have been identified as three of the biggest threats to the air cargo market by speakers at this week’s Air Cargo China event in Shanghai.
Speaking on a panel discussion, Joanna Li, executive director, commercial and business development at Hong Kong handler Hactl, said the threat presented by cyber attacks was underestimated because there hadn’t been a major attack on the industry for a while.
However, she warned that the rise of Artificial Intelligence (AI) was raising the threat level.
“Because of AI, it is much easier to have a cyber security attack because AI can imitate people’s behaviour,” she explained.
Li added that air cargo systems are interrelated and when something goes wrong, it can affect everyone.
“At Hactl, we spend a lot of resources on cyber security, but there are many smaller players that are actually very vulnerable to cyber attacks,” she said. “And a small cyber attack in a certain supply chain area can expand and explode into the whole industry.”
Meanwhile, for Etihad’s chief cargo officer Stanislas Brun, the biggest challenge faced by air cargo is a shortage of freighter capacity over the coming years.
He explained that demand was set to continue to grow, but the addition of new widebody freighters will prove to be problematic.
He pointed out that the only production freighter coming to market next year is the Airbus A350, while the Boeing 777 and Boeing 767 freighter programmes are due to end.
At the same time, airlines are holding onto passenger 777s due to supply chain issues that are delaying the arrival of new aircraft. In turn, this is resulting in limited conversion feedstock.
“The struggle will continue for the shipper,” he said. “Consumption will continue to increase and we don’t have enough planes.”
For Jannie Davel, chief executive of MSC Air Cargo, the biggest challenge is staff recruitment and retention at suppliers such as ground handlers.
“It is a very big challenge for them to get young, talented people to come into the industry,” he said, adding that air cargo is highly regulated and has high compliance levels, meaning it has been important to have staff who understand these requirements.
