With e-commerce boom, air cargo security gains prominence

Air cargo industry delivered 58 million tonnes cargo in 2023, accounting for 35 percent of the value of goods traded globally.

Industry representatives focussed, once again, on the safety issue at the World Cargo Symposium (WCS) organised by the International Air Transport Association (IATA) in Hong Kong in February, 2024.

Brendan Sullivan, Head of Cargo, IATA highlighted that safety is critical to air cargo’s success. "Last year the industry’s safety record reached new heights. Among the 38 million flights in 2023 there were 30 accidents, just one of which was fatal. A good safety record is earned every day. For air cargo that means continuing to put special emphasis on the handling of dangerous goods, and in particular lithium batteries,” said Sullivan.

Four areas were noted with respect to the safe transport of lithium batteries:

*A test standard for fire retardant shipping containers is ready for approval.

*Over 90 airlines are now sharing dangerous goods incident data through the IATA Global Aviation Data Management (GADM) programme.

*Guidance was published for operators to recognise and mitigate the risks from inexperienced e-commerce shippers using the postal system.

*An update to Annex 18 of the Chicago Convention clarifying responsibilities for the handling of dangerous goods and their effective regulation is now ready for global adoption by states.

e-commerce now accounts for 20 percent of total air cargo volumes, and the share could increase to 30 percent by 2027, according to a presentation by Andre Majeres, Head, e-commerce, cargo and mail operations, IATA in Hong Kong. Over 2.6 billion online shoppers bought 30 percent more in 2023, 34 percent shopped online at least once a week (79 percent once a month) and priority is speed of delivery for 26 percent shoppers.

516 air/airport incidents across the U.S. were registered in the Federal Aviation Administration (FAA) database from March 3, 2006 to March 13, 2024 involving lithium batteries. Battery pack/battery led the category of incidents (213) followed by e-cigarettes, cell phones and laptops.

Qatar Cargo, during the WCS presentation, highlighted its fleet of 13,000 fire resistant containers and:

*Fire containment covers (pallets) – risk-based cargo shipments

*Lithium battery detection dog (cargo secondary screening); and

*Screening solutions - X-ray machine (100x100) iCMORE patch and CT Scan – build up pallets

Qatar Cargo is moving to fire resistant containers (FRCs) in a phased manner with main deck and bulk hold fire containment solutions to be implemented by 2024-2027.

Paul Cheng, Executive Director – Operations, Hong Kong Air Cargo Terminals (Hactl), during the presentation at the WCS, spoke about the philosophy of 3S - Safety, Service Quality and Security. Enhanced security and safety measures include break-screen-build of Bulk Utilisation Programme (BUP), risk verification rules and technical detection dog.

"In recent years, security measures for air cargo have significantly evolved in response to changing threats, notably through the introduction of enhanced protocols for risk management," says Thomas Schürmann, Head of Cargo Operations & Delivery, Etihad Cargo. "A pivotal development occurred in 2019 when the World Customs Organisation (WCO) and the International Civil Aviation Organisation (ICAO) introduced an additional layer of security aimed at managing air cargo security risk more effectively.

"Etihad Cargo is fully aligned with this initiative, which has led to the enforcement of new security protocols by customs and aviation authorities worldwide, focusing on identifying and mitigating the potential risk of a 'bomb in the box' scenario before shipments are even loaded onto aircraft. This innovative security layer, known as Pre-Loading Advance Cargo Information (PLACI), represents a critical advancement in air cargo security. PLACI requires the provision of shipment data to regulatory authorities for a thorough risk assessment prior to the uplift of cargo. It ensures that no cargo is transported without clearance from the regulatory authority, thereby significantly enhancing the security of air cargo operations.

"PLACI builds on existing security regimes that rely on pre-arrival advance cargo information (ACI) requirements, offering a more preemptive approach to risk assessment. However, one of the key challenges that has emerged with the implementation of PLACI is the industry's need to comply with multiple PLACI initiatives across different countries whilst still maintaining the speed and efficiency of cargo flow. Since its introduction, the adoption of PLACI has gradually expanded. Initially implemented by the US Customs Border Protection with the Air Cargo Advance Screening (ACAS) programme in 2019, it was later adopted by the European Union with the launch of the Import Control System 2 (ICS2) in 2023.

The launch of SecureTech came in response to partner and customer feedback, alongside a notable surge in the demand for secure transportation solutions for consumer electronics. Etihad Cargo has seen a 51 percent increase in electronic cargo shipments in 2024 compared to the same period last year, demonstrating the growing need for such specialised services.
-Thomas Schürmann, Head of Cargo Operations & Delivery,
Etihad Cargo

"Following these, the United Arab Emirates, Canada with its pre-load air cargo targeting (PACT), and the United Kingdom with Pre-Departure Information for Cargo Targeting (Pre-DICT) (where carriers, forwarders and ground handling agents have to submit cargo data to the U.K. Home Office prior to loading shipments onto an aircraft transiting through or destined for the U.K.) have all introduced their own PLACI initiatives in 2024. Etihad Cargo, as one of the pilot carriers in the UAE’s PLACI initiative, is working closely with our partners and customers, helping them to navigate the new requirements and make better and more informed decisions. Moreover, additional countries are planning to roll out PLACI, indicating a growing global commitment to bolstering the security of the air cargo supply chain against evolving threats.

"To streamline these processes and enhance efficiency, the industry, through IATA, is advocating for the WCO and ICAO to standardise the PLACI requirements. The goal is to reach a point where only a single filing is needed, regardless of how many countries with PLACI requirements a shipment passes through. Such standardisation would not only simplify procedures but also significantly bolster security measures without impeding the flow of cargo."

Security risks and vulnerabilities, particularly those associated with trusted insider threats, continue to evolve, says Tom Owen, Director, Cargo, Cathay Cargo. "This makes the ICAO Annex 17 to mandate for 100 percent cargo screening from July 2021 a vital piece of legislation to mitigate some of these threats.

"Cathay fully complies with all of the various regulatory requirements issued by the appropriate authorities in all markets where it operates (such as the TSA, FAA and CAAs of different countries and places) and our utmost priority is to maintain the highest level of security standards.

"The PLACI programme is another significant example of security measures being enhanced over recent years to increase mitigation measures. Different countries and places have adopted a range of risk management approaches to assess the risks by collecting advance shipment data and monitoring inbound shipments. We fully comply with all such regulations."

Addressing security issues
In terms of cargo security, Etihad Cargo ensures cargo is secured from acceptance through to loading at the departure point, and on arrival, from unloading through to cargo delivery to the consignee, says Schürmann. "Measures we have put in place include ensuring the proper chain of custody is maintained and recorded in compliance with local and regulatory security requirements; screening all cargo and providing proof of screening for all shipments; protecting consignments through various security monitoring solutions, which include 24/7 CCTV surveillance and guarding; and performing random checks to ensure compliance with the established procedures."

Cathay has established and maintained a dedicated scheme, the Cargo Agents Operational Programme, for identifying capable and compliant agents and their assigned screening facilities for handling US-bound cargo. Owen adds: "This ensures the highest level of security measures are in place with additional training and advice provided to freight forwarders.

"Cathay is also actively participating in different cargo security working groups to exchange intelligence regarding potential threats, security enhancement measures and new technology to enhance air cargo security within the industry.

"Cathay Cargo Security maintains a comprehensive audit and quality assurance programme so as to ensure all ports are under sufficient supervision, monitoring and surveillance from the head office. This is to ensure regular compliance assurance checks are in place and continuous enhancements can be made in areas where we see the need for special focus.

"In the event that new security service providers are engaged, Cathay Cargo Security has a dedicated programme to conduct security assessments on service providers systemwide. Thanks to technological advancements, Cathay Cargo is now also looking into adopting AI models for additional screening of cargo shipments to continue to elevate our performance and risk mitigations."

Sectoral scrutiny and why
E-commerce shipments and US-bound cargo draws a lot of security attention, says Owen of Cathay Cargo. "Everyone knows the e-commerce market has grown exponentially over the last decade and will become the principal commodity division of export cargo, particularly from the Chinese Mainland. Unlike traditional freight where forwarders tender large but similar commodities on the same shipment with real-time information on the freight, e-commerce is utilised by everyone for shipping anything purchased from the internet and contains various different products in one shipment. Carriers may not be able to ascertain an accurate shipment information record, and now have to devote more time to cargo screening to detect and prevent the introduction of unauthorised and prohibited items."

Schürmann concurs with the view that high-value electronics, particularly those powered by lithium batteries such as mobile phones, laptops, and tablets, are subject to increased security scrutiny. "This heightened focus is driven by the demand for the safe and secure transportation of these items, prompting Etihad Cargo to launch SecureTech. This product is specifically tailored to ensure the safety and security of consumer electronics throughout their journey. The emphasis on this cargo category is partly due to the potential safety hazards lithium batteries can pose if not managed in accordance with stringent transport regulations.

"The critical importance of transporting electronics safely and securely is further highlighted by Etihad Cargo's achievement of IATA CEIV Li-batt certification, demonstrating Etihad Cargo's dedication to using sophisticated safety management systems and specialised equipment for the safe and secure transport of lithium battery shipments.

"The launch of SecureTech came in response to partner and customer feedback, alongside a notable surge in the demand for secure transportation solutions for consumer electronics. Etihad Cargo has seen a 51 percent increase in electronic cargo shipments in 2024 compared to the same period last year, demonstrating the growing need for such specialised services. With its extensive experience in handling specialised products, including high-value, fragile and temperature-sensitive goods, Etihad Cargo is adept at meeting the unique challenges presented by lithium battery-powered devices."

Security culture and reporting
Safety and security are top priorities for Etihad Cargo, "and we are committed to ensuring the highest security standards across our operations," adds Schürmann. "Cornerstones of Etihad Cargo’s approach to security are proactive training and awareness initiatives, and all our employees undergo security training that equips them with the knowledge and skills needed to identify and respond to potential threats effectively. From frontline staff to management, everyone is instilled with an understanding of security protocols and procedures.

"In addition to training, Etihad Cargo places great emphasis on fostering a culture of incident reporting. Recognising that timely reporting is crucial for effective risk management, we have implemented a notification procedure that encourages employees to report security incidents promptly and without fear of retribution. Clear reporting channels, coupled with a non-punitive reporting culture, empower employees to proactively identify and address security concerns, thereby mitigating potential risks before they escalate.

"Etihad Cargo continuously evaluates and refines its security procedures in response to emerging threats and changing regulatory requirements. Regular risk assessments and audits ensure that security measures remain effective and compliant."

We encourage and promote a “just” reporting culture when it comes to incidents relating to security, asset protection, or those considered sufficiently serious to affect the safety, security, revenue or reputation of Cathay. Regular communication and a systematic organisation of security reviews within the Group promotes the importance of security and how everybody can work together on enhancing aviation security.
-Tom Owen, Director, Cargo, Cathay Cargo

All personnel involved in the acceptance and handling of air cargo are required to complete the Cargo Security Awareness Training, including many of key freight forwarders, especially those handling US-bound cargo for Cathay Cargo.

Owen says: "Cathay Cargo has also launched several cargo security campaigns to remind all our cargo employees around the world to observe high levels of security awareness in their ports, and to highlight any recent hot topics from the perspective of cargo security.

“The most recent campaign focused on:

*Access Control – warehouse and aircraft

*Warehouse security, cargo supply chain security

*Training, documentation and validity

*Quality control and check; and

*Trusted Insider

Cathay Cargo, together with Group Safety & Operational Risk Management (GSORM) Security, takes the initiative to regularly promote industry best practices and enhance security awareness and knowledge. "We do this through encouraging reporting of incidents, providing appropriate training and briefings to Cathay personnel, ensuring timely promulgation of security information via intranet, and conducting surveys and audits on our outstations.

"We encourage and promote a “just” reporting culture when it comes to incidents relating to security, asset protection, or those considered sufficiently serious to affect the safety, security, revenue or reputation of Cathay. Regular communication and a systematic organisation of security reviews within the Group promotes the importance of security and how everybody can work together on enhancing aviation security.

"These regular items include: -

*Airline Safety Review Committee (ASRC) – A monthly high-level safety committee involving our Chief Executive Officer and other senior management. Various security-focused sessions are scheduled for the committee to promote a strong security culture among all members; and

*Security Action Group (SECAG) – a bi-monthly sub-committee of the ASRC aiming to review security incidents that may have safety and security implications; departmental operational matters; IT risks and security; and high-risk incidents."

“While the air cargo industry didn’t take any breaks during Covid-19 in enforcing security, it remains crucial to continue to promulgate specific security training to cargo-handling staff in our network so as to raise awareness on air cargo security. The Cathay Cargo security team has re-visited all our cargo outstations in 2023-2024 to review the local operations environment and provided necessary guidance to local teams. With a risk-based approach to assessing the security level of outstations, additional security measures were adopted in some individual areas to mitigate specific risks that were identified through these visits and audits.

"For some areas where more significant risks were identified, the Cathay Cargo security team maintains regular meetings with the outstation managers to review local procedures and the implementation of new security measures locally. This is to ensure that sufficient oversight and measures remain in place to safeguard the operations."

What next on security?
Schürmann has been observing the increasing use of artificial intelligence (AI), machine learning and automation for air cargo security. "The exponential growth in e-commerce has led to a surge in air cargo shipments. As a result, screening systems are being adapted to accommodate higher volumes with a focus on maintaining security standards without causing delays.

"Gone are the days when risk assessment was just based upon checking goods descriptions and names/addresses against a set of databases. The incorporation of AI and better information sharing allows for improved risk assessment, enabling a more efficient and secure air cargo transport process."

Introduction of AI for cargo screening, and the adoption of canines for detecting IEDs or even lithium batteries are the developments now being seen in the air cargo industry, Owen added.