Expanding business, diversifying cargo

In the early days, overnight express shipments centred on time-critical documents. Over time, however, the business has diversified taking in e-commerce and, more recently, healthcare shipments.

“Since the pandemic, we’ve seen the healthcare sector develop,” says Lee. “We’ve shipped vaccines and medical samples, and we’re working closely with our customer DHL Express to support and grow this segment, although we operate on a different scale from the broader air cargo markets.”

On time performance at its heart

With “Express” in its prime customer’s name, on-time performance (OTP) is a critical measure for AHK. Each night, flights begin arriving in Hong Kong in the early hours to be unloaded.

Packages are then sent to the DHL Central Asia Hub, re-sorted for onward destinations, before being transferred to the waiting Air Hong Kong fleet. This ensures consignments arrive close to first light at airports across the network. Some shipments might also be connecting on to Cathay Cargo long-haul network.

The operation requires a quick-thinking approach to keep turnarounds efficient. “We’re able to coordinate among different parties within a tight timeframe, particularly in Hong Kong,” says Lee. “It happens across the AHK network as well, but it’s intense here. That’s the beauty of Hong Kong as a hub. It’s in the DNA to chip away at time to be more efficient.”

Lee cites pilots beginning fuelling early, then waiting to finalise the uplift until the final load plan, which can continue changing until shortly before departure, is confirmed. In some cases, only a small top-up is required. “Every second counts,” says Lee.

Working with Cathay Cargo

Cathay Cargo and AHK are both part of the wider Cathay Group, and recent years have seen closer collaboration. In part, this has been driven by AHK’s increased capacity and improved reliability following fleet modernisation. This enabled a number of ad hoc charters to Sydney for an e-commerce firm in the Greater Bay Area, using the sea-air intermodal route from Dongguan.

“This sort of activity highlights the strength of being part of the Cathay Group and working closely with our partners at DHL Express,” says Lee. “There’s strong demand for southbound traffic during the northern winter, and now that we have a more stable fleet, we can scale up these projects and support more peak-season work.”

The new A330F joining the AHK fleet on behalf of Cathay Cargo will build on that momentum. “Regional movements of general cargo are increasing,” says Lee. “Having a medium-haul freighter platform supports Cathay Cargo’s growth plans as the feeder flights enable more transhipments through the Hong Kong hub. This will also give us the flexibility to respond to ad hoc opportunities for both of our customers. A medium-sized freighter provides a solution for a lot of charter expectations in the market.”

Carbon reduction through SAF

The DHL Group is committed to reducing carbon emissions across its operations and is increasing its use of SAF (sustainable aviation fuel). Last year, it entered into a strategic partnership with Cathay to purchase SAF and uplift on AHK flights, and this year inked a new agreement to increase its commitment. “We’re looking at doubling our commitment compared with 2025 levels,” says Lee. “And we’re already uplifting this fuel.”

Further strengthening the relationship, DHL Express is joining its sister company, DHL Global Forwarding, a major Cathay Cargo customer, to help scale up SAF volumes.