“This sort of unwavering support from the Hong Kong SAR Government, the Civil Aviation Department, and the Airport Authority Hong Kong has been instrumental in nurturing innovation and enhancing connectivity, ensuring that Hong Kong improves on its position as the world’s busiest air cargo hub and together with Cathay Cargo remain at the forefront of the air cargo industry,” Owen added. 

The way forward for digitalisation

TIACA prides itself on offering honest dialogue on industry issues at its Executive Forums, and this outing was no exception. During a panel session on digitalisation, moderator Kai Domscheit, CEO of CHI Deutschland Cargo Handling, challenged panellists, who included Andress Lam, Head of Cargo Digital at Cathay Cargo, and Simon Ng, CEO of Cathay Cargo’s technology partner Global Logistics System (HK) Ltd (GLS), about the promoted myth and the actual reality of the slow pace of the industry’s digitalisation efforts. 

Panellists identified fragmentation and resistance to change as issues, particularly from some statutory bodies, such as Customs, that maintain a role for paper. With so many individual entities on their own digitalisation journeys, a single version of the truth was becoming a priority, something that will come through the implementation of IATA’s ONE Record. 

“We want more people to use ONE Record,” Lam said on the panel. “We have done numerous pilots and we already have production shipments using ONE Record, but the benefits will only come when more people join.”  

Lam also outlined how developments at Cathay Cargo, such as the new Cargo Connect app for frontline staff, are making data and digital central to all of Cathay Cargo’s activities.  

Managing risk and safety

The value of digital innovation in enhancing cargo safety was a key theme during the “Safety in the Supply Chain” session at TIACA’s Executive Summit. The panel included Tim Wong, General Manager Cargo Service Delivery at Cathay Cargo, who emphasised the increasing complexity of cargo operations and the critical need for proactive safety strategies.

Among the various risks discussed, lithium-ion batteries stood out as one of the most significant challenges facing the industry. Wong outlined Cathay Cargo’s comprehensive three-pronged approach to managing this risk: education, detection, and containment. This includes targeted training for employees, ground handling agent (GHA) partners, and customers; advanced detection protocols supported by AI-powered screening tools; and the use of fire-resistant packaging to contain thermal runaway incidents.

Looking ahead, he also emphasised the transformative role of AI in cargo safety. By analysing shipment data, AI can identify potential risks and support frontline teams in making informed decisions.

The session concluded with a call for shared responsibility across the supply chain. Wong urged all stakeholders, from terminal operators to airlines, to unite in prioritising safety: “Let’s each play our part and work in unity to protect our industry.”

The future for e-commerce 

A session on e-commerce provided space to discuss the removal of US de minimis exemptions and its impact on transpacific demand. Previously, small e-commerce shipments for consumers accounted for 60 to 70 per cent of air cargo from the Chinese Mainland to the US. 

Frank Yau, Head of Cargo Sales for Hong Kong and the Greater Bay Area at Cathay Cargo, noted that this had significantly disrupted trade flows to the US. However, he emphasised that the Cathay Cargo team was actively mitigating the impact by reallocating additional capacity to other Americas markets, including Canada and Mexico. Furthermore, the team was leveraging network support from less tariff-affected regions—particularly India and Southeast Asia—to optimise cargo capacity for US-bound shipments. A portion of the redirected capacity has also been reassigned to European routes, thereby reducing reliance on the US market.  

Yau also expressed confidence in the continued long-term growth of e-commerce, despite the current short-term challenges.  

Sustainable development

TIACA produces an annual report on sustainability, and its latest findings indicate a rising demand among companies for suppliers and partners with progressive sustainability goals, as the aviation industry looks ahead to big targets like net zero by 2050. 

During a session on sustainability, Michelle Fok, Head of Sustainability Development, Cathay Subsidiary Services outlined Cathay Cargo Terminal’s objective to be a sustainability leader. She revealed that Cathay Cargo Terminal had already achieved its waste diversion objective, diverting 51 per cent of waste from landfill – in line with its target. This was accomplished through initiatives such as recycling and manufacturing plastic cover sheets made up of a minimum of 50 per cent recycled content. Innovative responses like this led to Cathay Cargo Terminal achieving full certification in IATA’s Environmental Assessment (IEnvA) programme.

Signing off

Of course, the forum was not all business. Networking and forging relationships across the industry is an important part of TIACA’s remit, and Cathay Cargo oiled these wheels with a well-received dinner cruise through Victoria Harbour. 

“The Executive Summit has become a unique space for real dialogue and actionable progress,” said Steven Polmans, chair of TIACA. “By bringing together so many global voices in Hong Kong – one of the world’s most critical cargo hubs – we’ve not only sparked important ideas, but also strengthened the bonds across our industry.”