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Cargo services facing the new reality

01 july 2020
LOT Cargo - already 166 flights under the Operation #CARGO for Poland banner. Michał Grochowski announces - there will be more flights. The carrier's project has made it possible to transport medical equipment and materials and successfully deliver to hospitals and medical facilities. In Joanna Wieczorek’s interview, an Aviation Law expert from Dentons, the new business reality is presented in great details

Joanna Wieczorek: Sir. Just a few weeks ago we witnessed the hundredth flight - a part of the #CARGO for Poland scheme.  How do you feel about the new reality in which cargo services plays such an exposed role, a vital part of the LOT Polish Airlines business?
Michał Grochowski:  Each carrier finds this business reality new. LOT finds it also a mission to fulfil.  LOT Cargo has already carried out 166 air connections under Operation #CARGO for Poland - and there will be even more operations!
The ultimate goal in the age of coronavirus is to transport medical equipment and materials for hospitals and medical facilities throughout Poland.  To date, we have transported the total of 3596 tonnes or 22 600 m³ of protective means, We covered 1,328,000 km to fulfil the objective.  Our mission - consistent and full enthusiasm demonstrated by all employees and our partners involved in the process. The airline is a machine that needs good people who keep working with passion and determination.
From the Director of the Cargo and Post Office perspective - I am most happy that this challenging period saw my team involved in helping the healthcare service.

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JW: I often hear that #CARGO for Poland is an extension of the #LOTtoHome project.
MG:  #CARGO for Poland is LOT's response to the epidemic situation - we must bring protective suits, masks, gloves and medical equipment to Poland, primarily from China, where these are manufactured. Now transport is subject to various restrictions, e.g. visa or crew restrictions. The borders between many countries are still closed. Therefore, we have to face many challenges.  Ever since the beginning of the pandemic, we have supplied goods and materials necessary for coronavirus combat. We have been working together with the Ministry of Foreign Affairs and government agencies.
When the #LOTtoHome operation was completed, #CARGO for Poland took over -  its LOT's core business now.  We began on March 17, the first shipments of protective materials and medical equipment. The project was in full-fledged phase on 5 April. We import cargo mainly from China, including Shanghai. We also returned to Beijing - a new airport for LOT Polish Airlines The flights we carried out from Shanghai on April 5 - these will remain in our memory for a long, because a cargo has also arrived on the seats of the Boeing 787 Dreamliner for the first time.  This specific situation made us learn how to adapt a long distance fleet to business new needs. Our entire aircraft is filled with goods now. Many teams are watching over the process to run smoothly. The  Product Department employees are responsible for quality assurance and high cabin standards for passengers.

JW:  Please tell us which teams are involved in the cargo operations organization?
MG: The LOT Cargo team has over 65 people globally and we are growing in strength.  In addition, we have support teams operating inside the company's structures, i.e.  the grid, operations or -technical staff. The  cargo flights make it is possible to plan work for many professions from aviation sector: pilots, land-crew at airports, forwarders, traffic controllers, handling agents.  LOT needs has generated in stand  in creation of  new functions, e.g. on long haul flights, we secure cargo supervision in the Dreamliner cabin by hiring a special person whose task is to plan the distribution of goods. These people must also have relevant knowledge, we recruit them primarily from among our company’s employees who know the requirements and restrictions of the aviation industry. The current difficult time keep cargo flights and the LOT fleet busy, additionally this plays a very important role for society.

JW: Together with Kamil Rarak, Head of Special Products and Training Department, LOT initiated cargo cool chain solution project. Why is this one of the most important projects for your airline?
MG: LOT Polish Airlines headed the group of companies focused on developing the pharmaceutical transport offer since April 2018. It was part of the strategy developed in the winter of 2017, initiated by IATA invitation. We started the process of applying for IATA CEIV Pharma certification by the Cargo and Post Services of PLL LOT in November 2018.
A series of specialized training and IATA audits  let us implement a quality system in our company, based on numerous procedures and instructions for handling temperature restricted shipments, including pharmaceutical shipments.
Our primary goal has been to prepare to serve both the Polish and foreign pharmaceutical market and offer a reliable product which meets the requirements of IATA, GDP and WHO. Thus in 2019 we transported over 1,600 tons of temperature restricted products, including over 350 tons of medicines and pharmaceutical products.

JW: Do you plan a further development of LOT Cargo Cool chain solution and how will you implement the project?
MG: Our most important goal is to pass the IATA final audit successfully, which will culminate in obtaining the IATA CEIV Pharma Certificate. Owing to the global epidemiological crisis, this process had to be postponed from March to July this year. These authorizations makes it possible for us to enter the first league of airlines dealing in the transport of PIL products (English and IATA TCR - PIL is the handling code for pharmaceutical products). We will also be the first airline in Central and Eastern Europe to have such a Certificate.  Please also remember that our subcontractors responsible for handling and terminal services or transport companies carrying out RFS transport on our behalf must also meet our requirements for handling temperature shipments.
In the era of the global economic crisis, we try to support our business partners both in the import and export of pharmaceuticals - the PLL LOT SA network is used for the purpose.

JW: What are the barriers to the LOT Cargo Cool chain solution project development - I mean legislative, market -related but also technological ones?
MG: Pharmaceutical products, by their very nature belong to the group of the most valuable goods, both in terms of a price per kg, but above all - these are often life-saving drugs.
The delivery of such goods in the shortest possible time (using e.g. direct flights) while maintaining appropriate temperature conditions is a key element of the entire logistics chain at the end of which the patient stands.
For this mechanism to work efficiently, each link in this chain must meet a number of requirements and apply the same rules and procedures (the whole end-to-end route - from the sender, the shipping companies and handling agents to the airlines).
Restrictions in this respect - legal regulations and industry guidelines. Sometimes a lack of thereof (as is the case of handling dangerous goods or transporting live animals). This forces entities which deal with handling PIL shipments to train personnel or select entities that can organize such transports. The consequences of too liberal approach may include temperature limits violations caused by improper handling and invisible damages to the medicine which cause changes in their physico-chemical properties. We make sure that these things do not happen.

JW: What solutions based on machine learning and artificial intelligence (AI) are used by LOT Cargo Department?  Łukasz Kachaniuk - a Senior Specialist in cargo sales in our conversation  emphasized that you have invested heavily and still invest in the digital transformation of CARGO processes.
MG: That's right.  Our everyday work at LOT Cargo is supported with analytical tools such as broadly understood Data Analytics which enables the team to perform in-depth analyses, as well as use the full range of data resources that facilitate the creation of transformative solutions for the whole company scale. The results are presented in real time in the form of various management summaries.  This greatly facilitates the work of managers and above all, makes it possible to react quickly in the world of ever-changing cargo business. The solution also enables providing our business partners with processed data in the form of statistics and specific analyses designed to improve marketing activities and increase sales.
At the same time, in the bidding process we are supported by the Champ Quote Module system. Thanks to this tailor-made solution, we can effectively take into account the needs of our customers, and thus maximize sales, while facilitating communication between sales and operations.  This module streamlines the offers creating process, authorizations and distribution of rates to customers. After a brief authorization makes it possible to run automatic conversion of the offer to the reservation.
DG Autocheck IATA is another tool.  As the first line in Europe, we have implemented this tool in our daily handling of DGR goods.  The tool implementation enables digital acceptance and verification of hazardous materials. Thus LOT is one of the few carriers in the world that guarantees the highest global level of transport safety of such materials, and increases their transport efficiency. All these solutions are an expression of our aspirations to have the most modern, most effective and most beneficial tools for clients.

JW: Do you plan any further changes towards digital transformation due to the growing importance of Cargo?
MG: In the current market situation caused by COVID-19, it is hard to talk about short-term plans and IT developments.   Certainly, as soon as the situation makes it possible, we will further develop our products so that they can become the most effective tool for our customers.
LOT Cargo is a dynamically developing scheme which focuses on innovative solutions, thus we quickly respond to the needs of the market and customers. And this is the basis for us in order to meet the goal of being a CEE market leader in freight transport.

JW: LOT Polish Airlines cargo in the near future - please share your plans with Aviation International readers?
MG: Cargo has always been important to LOT.  Not everyone knows, but in 2019 we became the largest cargo carrier in Poland and the second largest in Central and Eastern Europe.  The Dreamliners lower decks were always packed. The turnover increased, and new product categories appeared, such as the above-mentioned pharmaceuticals.
The epidemic mad us focus mainly on medical long-hauls from China, while we are also looking for business opportunities in European countries. I can point out to transports carried out to Budapest or operations with Dash Q400 aircraft in Europe.
Experts know that  85% of goods globally are transported in the lower part of the aircraft cabin as part of regular passenger services. . As a result of the reduction in operations, the supply of cargo space has dropped dramatically. Thus, a gigantic demand appeared, causing a prices rise for transport services.
Our current business activity is therefore an attempt to adapt to changing conditions. Thus we seize the opportunities offered by the new situation. We have plans to fly to places we have not even travelled with passengers before.  I often tell my team that the crisis is the time when the weak drop out from the business and the strong ones grow even further. I believe that my team and PLL LOT actually draws on the potential of LOT Cargo. Our goal and ambition is to acquire and maintain the position of a cargo leader in this part of the world  -this is our course for the near future.

JW: Thank you for the conversation.

 Source: http://zbiam.pl/

(AO)

 

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