In Part Two of our interview with Anna-Maria Kirchner, head of global sales at Finnair Cargo, she discusses how Finnair Cargo is leveraging digitalisation to optimise efficiency, how it is dealing with the rise of e-commerce demand, and how global economic conditions can affect the carrier’s operations.
How have recent global supply chain disruptions impacted Finnair Cargo operations, and what measures are you taking to mitigate these challenges?
Supply chain disruptions are an unfortunate reality that we must navigate as they slow growth, so it is important that we take measures to mitigate them.
However, it isn’t always possible as we must factor in things outside of our control, but we need to stay alert and be prepared to mitigate potential outside impacts to our operations.
Our offering means customers can utilise air freight as part of an integrated supply chain to increase resilience and keep their supply chain moving through disruption so that’s our focus. We strive to offer our customers as smooth and reliable air freight operations as possible.
What are the key areas of investment for Finnair Cargo over the next few years?
Our focus for the years ahead is to continue to develop Finnair’s cargo capability for our customers and partners.
We made significant investment in our COOL Nordic Cargo Hub with the aim of becoming the world’s most high-quality air cargo carrier, and our focus will be continuing to build the most intelligent and predictable air cargo solution in the market.
Investment in automation and artificial intelligence (AI) will continue to enhance efficiency both for us and our customers, and with the right technology, we can continue to cater for air cargo’s increased demand. At Finnair Cargo, robotics, data monitoring, and expert attention to detail will continue to be the pillars of our success.
But sustainability has also been a cornerstone of our investment in recent years, and this is something we are keen to grow in the coming years. Sustainability is already driving decisions within the business, and I am confident investment in future projects will factor in how we can transform our business for the good of the environment.
Reflecting on your role as a senior executive at Finnair Cargo, what significant lessons have you learned about your organisation, and of the dynamics of the air cargo industry?
Finnair Cargo’s priority cargo, ‘FIRST’, also offers customers a reliable fast-track solution for urgent cargo shipments.
I’ve learned how important it is to stay agile and work closely as a team, especially in a fast-changing industry. Good communication and collaboration make a big difference in tackling challenges.
The air cargo business is unpredictable, so being adaptable and building strong customer relationships are key.
Sustainability has also become a bigger focus, with SAF playing an important role in reducing emissions.
Navigating challenges such as capacity constraints, fluctuating demand, and sustainability requirements has highlighted the critical role of innovation and adaptability in maintaining a competitive edge.
Balancing operational efficiency, costs, and more sustainable practices is crucial to long-term success.
How are global economic conditions affecting the air cargo industry, and what implications does this have for Finnair Cargo?
Both sea freight and air transportation rates were very volatile, especially post pandemic and a recent IATA report noted that air cargo faces all the challenges common to the industry as a whole, but it is uniquely exposed to trends in manufactured goods trade and to all the related policies.
Finnair is no exception to that, and the industry is seeing a global increase in steps taken by countries to restrict international trade by different types of measures, including raising tariffs.
Geopolitical tensions have continued, and we have seen continued inflation across many countries as well as impaired supply chains and rising cross-border trade restrictions.
Despite this, 2024 has seen growth in trade, and e-commerce is booming.
We are also seeing numerous disruptions in maritime shipping which is leading to increased demand for air cargo.
IATA reported that disruptions in ocean container shipping have re-emerged since late-2023, linked to the Red Sea, the Panama Canal drought, and the accident at the Baltimore Bridge radically increasing air cargo’s competitiveness.
Looking ahead, we are optimistic about expanding cargo volumes across all regions in the current year.
How are customer expectations changing, and what steps is Finnair Cargo taking to meet and exceed these expectations?
Due to a significant increase in e-commerce and speed of delivery, customers expect a more reliable and faster service than ever before.
Meeting changing customer expectations requires us to continually re-evaluate their requirements and respond accordingly. It’s been possible for us to do so due to our forward thinking and innovative approach but sometimes rigid structures or legacy systems within the industry may pose challenges.
Customers want flexibility, speed and convenience, meaning fulfilment is crucially important to the overall strategy – it is about being able to process and manage cargo, at speed, from multiple channels via multiple locations.
How is Finnair Cargo leveraging advancements in digitalisation to optimise operations and drive efficiency?
The years ahead are going to bring many changes to the world of air cargo as digitalisation progresses.
At Finnair Cargo, we already provide advanced digital tracking solutions that allow customers to monitor their shipments in real-time with a platform that provides details about shipment status and location.
We are an active stakeholder in the development of joint industry efforts for digitalisation, but a lot is being done even regarding our own services.
The air cargo industry has long been quite traditional, and bookings have been made via telephone calls or e-mails, but we have now systematically developed other sales channels to ensure more flexible and transparent, and faster digital service. We have actively tried to find new options for sales channels so that co-operation with our customers would be even easier.
We have developed our own online service, and we are also on several multicarrier platforms which have many customer benefits – they get a view on pricing and capacity in real-time and online bookings also improve the quality of data, as there are fewer touchpoints.
Of course, one of the major business benefits is that the online booking service is available 24/7, which also hugely increases flexibility of our service to customers. Being available through multiple sales channels gives our customers the possibility to choose which one to use depending on their needs and preferences.
Looking ahead, the next couple of years are going to bring many changes to the world of air cargo as digitalisation progresses and we want to be an active stakeholder in these developments as well as create our own digital platforms to serve our customers better.
Some of the major developments include the introduction of the new data-sharing standard ONE Record and the new customs procedures in the EU.
Additionally, AI solutions could also help us recognise packages automatically and cost-efficiently.
For us as a company, we want to be at the forefront of the air cargo industry when it comes to digital development.
With a global surge in e-commerce over recent years, how has Finnair Cargo adapted its operations to meet the increased demand for fast and reliable shipping?
The rapid expansion of e-commerce has fuelled demand for air cargo services, and we have seen this realised in our bookings. Our customers expect faster delivery times, often preferring air transport especially for high-value or time-sensitive items.
However, the capacity of our COOL Nordic Cargo Hub allows Finnair Cargo to carry 350,000 tonnes of cargo every year and there’s room to expand by 10,000 sqm in the future to meet rising demand – so we are well-placed to cater for this.
Finnair Cargo’s priority cargo, ‘FIRST’, also offers customers a reliable fast-track solution for urgent cargo shipments, and this product has grown in popularity post-pandemic.
Finally, you mustn’t forget that Finnair is the Official Airline of Santa Claus, and from our workshop in Helsinki, we are used to sending gifts across the world in record time, especially in December!
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