SINGAPORE'S Changi Airport Group (CAG) is adopting an intermodal approach to business in an operating environment where capacity and demand have become a tense balancing act, according to London's Air Cargo News.
Managing director for air hub development Lim Ching Kiat said the airport works with seaport operator PSA International at the Port of Singapore to optimize cargo flow in Singapore based on supply and demand.
'For us, the advantages are Singapore is a busy air cargo hub, but also has one the busiest ports in the world. We are looking at this area of intermodal cargo - air-sea transshipment or sea-air transshipment.
'Depending on the economic cycle, if the supply is tight, shippers tend to go for air-air more, but when the market softens price conscious shippers may choose a slower but cheaper sea-air shipment.
'We are keen to grow our intermodal business to give customers different options for moving their goods.'
CAG's drive to improve capacity management efficiency bodes well for several freighter operators that have invested in the airport since the start of the pandemic. These include India-based Spice Express, Australian Tasman Cargo Airlines, and US-located Atlas Air.
2022 has also seen a new DHL Express and Singapore Airlines (SIA) partnership that will increase cargo volumes at the airport.
The partnership was established in March to deploy five B777Fs with SIA on a crew and maintenance agreement (CM) in order to secure capacity out of Singapore.
Then in August, SIA began operating a B777 freighter between Singapore and the US via South Korea three times a week. 'All of these are good developments for us,' said Mr Lim.
The airport is also turning its attention to the restoration of belly capacity. Pre-Covid, about two thirds of Changi's cargo capacity was belly capacity, says Lim.
But the recovery of belly capacity has been slow. 'Passenger airlines, traffic and fleet recovery is about 70 per cent,' he said.
However, thanks to the recent freighter investments, overall cargo volumes are healthy. 'We managed to recover 100 per cent of the 2019 cargo volumes last year in September,' said Mr Lim.
'This year we are seeing the same trends that we see in other parts of Asia and Europe. The cargo volumes have been fluctuating.'
But like elsewhere in the world, ground handling staff shortages is one of the biggest issues for Changi Airport and CAG is working closely with the airlines and ground handling companies to address recruitment and retention, as well as juggling flight slots with airlines in line with available space and resources.
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Managing director for air hub development Lim Ching Kiat said the airport works with seaport operator PSA International at the Port of Singapore to optimize cargo flow in Singapore based on supply and demand.
'For us, the advantages are Singapore is a busy air cargo hub, but also has one the busiest ports in the world. We are looking at this area of intermodal cargo - air-sea transshipment or sea-air transshipment.
'Depending on the economic cycle, if the supply is tight, shippers tend to go for air-air more, but when the market softens price conscious shippers may choose a slower but cheaper sea-air shipment.
'We are keen to grow our intermodal business to give customers different options for moving their goods.'
CAG's drive to improve capacity management efficiency bodes well for several freighter operators that have invested in the airport since the start of the pandemic. These include India-based Spice Express, Australian Tasman Cargo Airlines, and US-located Atlas Air.
2022 has also seen a new DHL Express and Singapore Airlines (SIA) partnership that will increase cargo volumes at the airport.
The partnership was established in March to deploy five B777Fs with SIA on a crew and maintenance agreement (CM) in order to secure capacity out of Singapore.
Then in August, SIA began operating a B777 freighter between Singapore and the US via South Korea three times a week. 'All of these are good developments for us,' said Mr Lim.
The airport is also turning its attention to the restoration of belly capacity. Pre-Covid, about two thirds of Changi's cargo capacity was belly capacity, says Lim.
But the recovery of belly capacity has been slow. 'Passenger airlines, traffic and fleet recovery is about 70 per cent,' he said.
However, thanks to the recent freighter investments, overall cargo volumes are healthy. 'We managed to recover 100 per cent of the 2019 cargo volumes last year in September,' said Mr Lim.
'This year we are seeing the same trends that we see in other parts of Asia and Europe. The cargo volumes have been fluctuating.'
But like elsewhere in the world, ground handling staff shortages is one of the biggest issues for Changi Airport and CAG is working closely with the airlines and ground handling companies to address recruitment and retention, as well as juggling flight slots with airlines in line with available space and resources.
SeaNews Turkey