Looking back at 2023/24, it has been a volatile time for the global air cargo industry, including Singapore’s air cargo sector.
Throughout most of the period, operators have faced significant macroeconomic challenges, such as high inflationary pressures and tightening monetary policies, which softened the demand for traded goods.
Despite these challenges, there were some silver linings. While many global air cargo hubs registered a decline in traffic in 2023, towards the end of 2023 and in the first five months of 2024, there has been a strong recovery, driven by cross-border e-commerce and the shift from ocean to air freight due to the Red Sea crisis.
“We expect uncertainties to persist throughout this year and possibly into the first half of next year. Nevertheless, we remain committed to our priorities and strategies,” Jaisey Yip, Vice President of the Cargo Business Division at Changi Airport Group, stated. “We have always prided ourselves on building a robust network and maintaining strong connectivity, and we will continue to do so despite the challenging environment.
“Last year, we were encouraged by the confidence our airline partners showed in the Changi Air Hub. We welcomed three new freighter operators and secured new freighter routes to cities like Nagoya, Nanning, and Haikou.
“Global express integrators like DHL, FedEx, and China’s SF Express also expanded their presence in Singapore. For instance, DHL fully inducted five Boeing 777 freighters in partnership with Singapore Airlines to strengthen connectivity between Asia-Pacific and the US. Earlier this year, FedEx announced its new Asia Pacific, Middle East, and Africa (AMEA) headquarters in Singapore, laying a foundation for network expansion via Changi Airport. SF Express, the largest express player in China and the fourth largest globally, also expanded its gateway operations at Changi Airport.”
Regional diversification
In recent years, there has been significant discussion around the “China Plus One” strategy, nearshoring, and friendshoring among global companies. These trends have been observed, particularly in Southeast Asia, where new foreign direct investments—especially in high-tech—are increasing.
“ASEAN has become the largest export trading partner for China, it has become critical for us to deepen our connectivity with major gateways in China,” Yip stated.
“Additionally, we are optimistic about the potential of India as both a manufacturing hub and a consumption hotspot. Recent export data shows that one-third of India’s exports last year were high-value goods, such as engineering products and pharmaceuticals.
“To capitalise on this opportunity, we aim to position ourselves as a key conduit between India and the rest of the Asia-Pacific region. To this end, we are collaborating with Indian carriers and our own Singapore Airlines to expand and strengthen our network in India.”
Sustainable blueprint
In February, the Civil Aviation Authority of Singapore (CAAS) announced the Singapore Air Hub Sustainability Blueprint after extensive consultations with the aviation industry, particularly airlines. This blueprint outlines the country’s sustainability goals and focuses on three key domains, each with specific initiatives we’re driving with our partners.
The first domain is the airlines. Changi is working with them to encourage the adoption of Sustainable Aviation Fuel (SAF). The second domain is the airport itself, where it is focusing on raising energy efficiency of our terminal buildings and transitioning to renewable energy. The third domain is air traffic control, where CAAS is exploring initiatives to minimise taxiing time and ensure optimal takeoff and landing procedures.
“For our specific goals at Changi Airport, we’re committed to building a greener air cargo hub through a broad, multi-pronged approach. We’re focusing on four core areas,” Yip continued.
“Recognised by IATA as a critical pathfinder to achieving net-zero targets, SAF remains a key focus. We’re encouraging airlines to conduct trials and adopt SAF.
“Last year, we began installing solar panels in our air cargo zone on the rooftops of our cargo agent buildings. This initiative aims to enhance energy efficiency through renewable sources.
“We’ve set targets to electrify our ground service equipment. Over the next few years, all new equipment will use renewable energy or electric power. By 2040, we aim to have the entire airside fleet operate on cleaner energy sources.
“These initiatives reflect our commitment to sustainability and our collaborative efforts with government and industry partners to create a more sustainable air hub.”
