The air cargo landscape demands constant evolution, and Cathay Cargo is leading this transformation with innovative solutions for complex shipping challenges. From orchestrating the delicate transport of pandas and racehorses to ensuring the precise delivery of vaccines and fresh seafood, the carrier has established itself as a specialist in high-value, sensitive cargo movements. Based in Hong Kong, Asia’s premier logistics hub, Cathay Cargo is leveraging digital innovation, enhanced regional connectivity, and sustainable practices to reshape the future of air freight operations.

Meeting complex shipping needs with specialised solutions

Cathay Cargo offers nine specialist solutions, each tailored with distinct procedures, safety protocols, and handling methods. “We have four CEIV IATA certifications around Cathay Fresh, pharmaceuticals, lithium batteries, and live animals,” says Tom Owen, Director Cathay Cargo.  

“We also divide our speciality cargo into three categories: time-sensitive, handling-sensitive, and temperature-sensitive.” Customers can further customise their experience by choosing from three levels of priority—First, Essential Plus, and Essential—depending on the urgency of their shipment.

Handling live animals presents some of the most demanding challenges. Owen highlights the recent transportation of two pandas from Chengdu to Hong Kong, noting that these shipments require precise temperature control, lighting, pressure, and careful handling. Similarly, transporting racehorses between Hong Kong, Australia, and Europe demands specialised care.

Temperature-sensitive shipments, such as lobsters and fresh produce, are another critical focus. “For instance, we transport lobsters from Perth to Hong Kong and other markets. They must arrive alive and in good condition,” Owen shares. Cathay Cargo also tackles oversized cargo through its Cathay Expert solution, which handles heavy equipment like engines and compressors. “Our 747 freighters with a nose-loading capability make it easier to handle such large shipments,” Owen adds.

Efficiency through digital transformation
Cathay Cargo’s digital transformation journey, now in its fifth year, is reshaping its operations and enhancing customer interactions. “We’ve increased our spend significantly on digital products,” Owen says, underscoring how these investments drive efficiency and innovation.

One notable advancement is UltraTrack, a tool that provides real-time monitoring of shipment temperature and pressure—critical for transporting temperature-sensitive goods like pharmaceuticals and fresh produce. Additionally, the Cargo Connect app equips operational staff with tools such as safety protocols, rosters, and real-time updates, streamlining ground operations. With 66% of bookings now completed online, customers benefit from reduced processing times and 24/7 accessibility.

The carrier is also leveraging artificial intelligence to enhance operations. “Our AI-enabled x-ray systems can identify areas requiring closer inspection for dangerous goods,” Owen notes. Looking ahead, Cathay Cargo is developing virtual reality training facilities to simulate loading freighters and securing oversized cargo, further enhancing operational excellence.

Enhancing cold chain capabilities for temperature-sensitive shipments
Cathay Cargo’s digital tools seamlessly complement its robust cold chain infrastructure, ensuring the safe handling of temperature-sensitive shipments. “One of the advantages of Cathay Cargo is that we own our own terminal, Cathay Cargo Terminal in Hong Kong, which has the largest cold storage space available for handling facilities,” says Owen. This includes a 1,250-square-meter pharma room specifically designed for pharmaceutical shipments.

The terminal features inflatable truck docks that create an airtight seal, preventing hot air from entering or cold air from escaping during loading and unloading. “We also use Cool Dollies, large mobile refrigerated units, to transport freight from the aircraft to the cargo terminal, ensuring temperature-sensitive shipments aren’t exposed to the hot weather in Hong Kong,” Owen explains.

Owen adds, “We basically look from end to end, from the aircraft—which is temperature controlled—coming off from the cool dolly, coming into the pharma centre or the cold room directly, and then once you’re in the cold room, being stored in the warehouse system in the MobiFresh boxes.” This comprehensive approach ensures that temperature-sensitive goods are maintained at the required conditions throughout the entire supply chain.

Strengthening regional links and intermodal connectivity
As a gateway to the Greater Bay Area (GBA), Cathay Cargo is strategically positioned to enhance intermodal solutions for its customers. The Dongguan intermodal facility exemplifies this strategy. “It allows cargo to be security-cleared upstream, transported by barge to Hong Kong International Airport, and loaded directly onto aircraft,” Owen explains. This approach enhances reliability and cost-efficiency while reducing reliance on road transport, offering improved supply chain visibility for e-commerce and temperature-sensitive shipments.

The GBA, with its population of over 80 million consumers and thriving manufacturing base, represents significant growth potential for Cathay Cargo. The 55-kilometre Zhuhai-Macau bridge has further opened up opportunities with Cathay Cargo working to establish perishable acceptance facilities enabling the efficient distribution of fresh produce and other perishables from Hong Kong to the Chinese Mainland. “There’s constant opportunity, and we’re pretty optimistic that we’re going to continue to see growth,” Owen adds.

Collaboration is key to making these developments possible. “You cannot do cargo on your own,” Owen emphasises. Working alongside the Airport Authority Hong Kong (AAHK), Cathay Cargo has helped establish the Dongguan facility, while partnerships with Hong Kong Customs and Excise ensure efficient trade flow with minimal obstacles. The carrier also maintains strong connections with freight forwarders and cargo terminals worldwide to enable seamless information flow through IATA’s ONE Record messaging protocol standards.

A vision for growth and innovation
Looking ahead, Cathay Cargo is pursuing measured fleet expansion with six A350 freighters on firm order and options for 20 more, complementing its existing 747-8 freighters. These aircraft will offer improved fuel efficiency and increased payload capacity, supporting the carrier’s sustainability goals and operational scalability. Growth will also come through increased belly cargo capacity from Cathay Pacific’s passenger fleet of over 200 wide-body aircraft. “We want to grow below the overall market rate. So we were quite conservative with our growth. But at the same time, we need to be big enough to provide the solutions that the freight forwarders need and want and be relevant in terms of scale,” Owen explains.

Digital innovation remains a priority, with plans to revamp the carrier’s website into a comprehensive platform for freight forwarders. “We recognise that we want to provide a one-stop shop for our freight forwarders and customers to work and interact with Cathay Cargo,” Owen says.

With over a thousand direct employees and hundreds more in supporting roles, workforce development underpins these ambitions. “We want to make sure they’re the best trained in the industry, the most engaged, and the most motivated to fulfil our brand promise to customers,” Owen emphasises. This focus on people alongside fleet modernisation and digital innovation, positions Cathay Cargo to maintain its leadership in specialised cargo solutions.

This story was first published in the November-December 2024 issue of Payload Asia.