Mar 25, 2024
Sustainability is at the core of Air France KLM Martinair Cargo’s activities, with Air France and KLM having focused on it since the 1990s.
Rather than developing a business strategy and a separate sustainability strategy, Air France KLM put sustainability at the core of its strategy. This means balancing financial returns and customer satisfaction with sustainability performance, and connecting people and goods globally in a sustainable manner.
“In light of overwhelming climate research, the tangible effects of climate change, increasing competition in the industry, and the impact of the COVID-19 pandemic, we have realised that there are limits to our planet, and that immediate action is needed if we want to continue to operate inside these limits,” Michiel Potjer, Strategic Sustainability Lead at AFKLMP Cargo, said.
“AFKLMP Cargo renewed its vision 2030: ‘to become a leader in sustainable airfreight, while passionately delivering best-in-class customer experience’. This implies that only by taking responsibility for our actions and reducing our climate impact, can we continue to exist successfully in the future,” Potjer continued.
Responsible roadmap
In 2022, the Air France KLM Group published its first Climate Action Plan. In it, they shared their climate strategy and the challenges of the aviation industry. The carrier’s ambitions were validated by the Science Based Targets initiative (SBTi), primarily centred around reducing our direct and indirect CO₂ emissions, which is giving them a clear path towards 2030.
For the Destination Sustainability Roadmap, AFKLMP’s main target is to achieve -30% emission reduction per RTK/km in 2030. They determined two objectives to help achieve their main target: 10% sustainable aviation fuel (SAF) by 2030 and 64% of new generation aircraft in 2028.
To reach this environmental ambition, they identified three levers: Fleet renewal, SAF and operational measures. Below is an overview of how we contribute to the Destination Sustainability Roadmap.
“As one of the leading airfreight carriers, we have a significant role in reshaping the industry. We consider it our responsibility to be at the forefront of a more sustainable airfreight sector and, consequently, accelerate our environmental transition,” Potjer explained.
“However, considering the challenges we face in this hard to abate sector, we also observe that there is no silver bullet solution to abate the sector’s 2050 footprint reduction pathway. We are part of a complex ecosystem involving numerous stakeholders,” he added. “We recognise that reducing our environmental footprint is not a standalone endeavour; we must confront environmental challenges in close collaboration with our ecosystem partners.”
AFKLMP recently announced a firm order of four A350F for AF and four A350F for KL to replace its freighter fleet. The A350F will replace the current Boeing 747 freighters from the second half of 2026.
“The four A350Fs emit over 40% less CO₂ and make 50% less noise than their predecessors. Next to our FF fleet replacement plans, we benefit from the AF and KL airlines fleet renewal plan (64% of new generation aircraft) to reduce our belly freighter capacity footprint and the overall Passenger/KM, RTK/km,” Potjer said.
Focus on fuel
In 2020, AFKLMP Cargo introduced the Cargo SAF Programme. Since then, over 100+ partners have invested in its SAF Programme. The programme enables forwarders and shippers to fuel their flights with a percentage of SAF.
Customers choose their own contribution level while they ensure that the investment is fully utilised to purchase SAF. When investing in SAF, customers receive an independently certified report specifying the amount of SAF purchased in terms of traffic volume, giving an indication of the resulting reduction in CO₂ emissions. Year-to-date, the Cargo SAF Programme accounts for 50% of the total voluntary Corporate Commercial vs. Cargo SAF programmes offered by the group.
In 2022, they introduced the goSAF ancillary in their MyCargo booking platform. With goSAF, customers using the myCargo booking portal can set the level of their contribution to SAF for each shipment.
“We give customers a choice of four contribution levels, which will allow them to proportionally reduce their contribution to CO₂ emissions when booking. The underlying CO₂ emissions calculator determines the expected CO₂ emissions of the shipment and calculates the costs of compensating for this by investing in the purchase of SAF,” Potjer outlined. “We notice that customers from a variety of geographical areas are interested in the goSAF ancillary because it’s a relatively low entry level for them to participate and contribute to the usage of SAF.”
In 2022, AFKLMP took the initiative to add a standard percentage of SAF (0.5%) to all flights departing from Paris Charles de Gaulle and Amsterdam Airport Schiphol. This percentage was increased to 1.5% in 2023, with further increases planned for 2024 and the years to come. Although this percentage may seem small, it is an important step in the right direction.
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Operational footprint
“At AFKLMP Cargo, we leave no stone unturned when we look at our operational lever to reach our overall target. We have two sub-targets for our operations: 50% non-recycled waste by 2030 vs 2011 and Zero emissions ground operations by 2030,” Potjer stated. “The best way to explain the operational measures we are taking to reduce our operational footprint at cargo is by following the cargo handling process.”
AFKLMP is implementing paperless handling (E-AWB). Truck drivers only need to scan a pass. This is because the data has already been uploaded into the digital eLink system by forwarders, which saves a lot of paper and time. Goods are increasingly delivered on plastic and carton pallets instead of wooden pallets. They are also slowly implementing plastic pallets because they last longer and don’t increase the weight of the plane as much as wooden pallets. A lighter plane means less fuel consumption, which in turn results in fewer CO2 emissions.
AFKLMP’s entire warehouse operation runs on electricity, which they hope to generate by themselves.
Once the cargo is ready for transport, it’s driven to the airstrip by MULAG vehicles. They’ve started a pilot scheme, so some of them run on HVO (Hydrotreated Vegetable Oil), which is a low carbon fuel. The MULAGs will eventually run on HVO, hydrogen and electricity, but the latter is more likely longer term because a MULAG carries up to 30,000kg per trip, so it needs more power than most electric vehicles currently provide. They are also increasingly focused on optimising the cargo load by implementing effective cargo load planning.
Trucking is also an important aspect of their network, and they recognise that they also need to reduce its footprint. AFKLMP has introduced initiatives like an all-electric truck for use as a shuttle in the Paris area, and the usage of long Heavy Vehicle (LHV) on the route between Amsterdam and Frankfurt. This completely new truck combination runs on BioFuel – Hydrotreated Vegetable Oil 100 (HVO100).
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Changing expectations
AFKLMP exists to help forwarders and shippers transport a wide variety of goods to all corners of the globe. Over the last couple of years, they have seen big changes in customer expectations when it comes to their products and services, primarily propelled by technology and increasingly by sustainability.
“Customers still consider AFKLMP Cargo to be a leader in the air cargo industry in terms of network, expertise, products and services. We have to make clear and transparent choices: while we meet industry standards regarding our network, products and operational quality, we aim to outperform our competitors in the field of (digital) distribution,” Potjer said.
“Delivering best-in-class customer experiences daily is key in differentiating ourselves. In other words, we put our customers at the centre of what we do and foster long-term relationships. Customer commitments are at the core of our business: create meaningful connections, through reliability, expertise, innovation, flexibility, and empowerment,” he continued.
AFKLMP recognises that the airfreight industry plays a vital role in global trade. Historically, airfreight has presented opportunities but certainly also challenges, considering the supply and demand dynamics with volatile activity levels. Despite the drastic drop on our passenger side, impacting cargo belly capacity due to the COVID-19 pandemic, the activity levels of the aviation sector are rebounding faster than expected and continue to grow. The increasing demand for materials and goods is expected to drive industrial demand, thus boosting airfreight utilisation.
“Flying brings people and businesses together, connecting cultures and moving essential goods around the world but we also realise that the airfreight sector contributes to an increasing CO2 footprint and faces a sphere challenge as a hard-to-abate sector,” Potjer said.
Aviation is grappling with significant challenges in reducing CO2 emissions. Regulatory and customer pressures are mounting for shippers, forwarders, and carriers to embrace decarbonisation, yet costs remain high. The willingness to pay falls short of covering decarbonisation expenses, keeping the market immature. Despite initial momentum during the COVID-19 pandemic, particularly with the adoption of SAF, the industry now faces hesitation from stakeholders due to returning yield levels. At the same time, an increasing number of shippers, forwarders, and carriers are developing sustainability roadmaps or setting scope 3 targets for 2030. Many discussions centre on these roadmaps and the role of SAF within them. However, we share a collective responsibility to take concrete actions today, advance toward more mature solutions and ensure consistent actions in the airfreight industry for 2030 and beyond.
The airfreight industry is a complex ecosystem involving many stakeholders. By working together, AFKLMP sees itself as being able to catalyse, accelerate, and transform the industry, contributing to and creating a more sustainable airfreight sector.
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Author: Edward Hardy