In the next instalment of our senior executive interview series, Lars Jordahn, global head of Maersk Air Cargo shares insights on how the rapidly shifting air cargo landscape is impacting the carrier’s operations, and how the company is navigating changes and positioning itself for future growth.

The impact of global economic conditions

As the global economy experiences disruptions, particularly in supply chains, air cargo has become an essential component for many businesses. “These disruptions have led to a heightened reliance on air cargo, as companies increasingly prepare for unforeseen challenges,” explains Jordhan. “Supply chain disruptions in air cargo transportation has become part of the mix. Customers must be better prepared for disruptions. Afterall, air cargo plays a critical role in ensuring timely deliveries and maintaining the flow of goods across borders.”

Differentiating in a competitive market

In a highly competitive air cargo market, Maersk Air Cargo distinguishes itself through its comprehensive, end-to-end supply chain solutions. Jordahn highlights the company’s unique position as an asset owner across the entire transport chain. “This gives us and our customers full control and visibility, which is a great benefit for our customers,” he says. “This integrated approach not only enhances efficiency but also provides Maersk Air Cargo customers with a level of transparency that is increasingly in demand in today’s market.”

Embracing tech

Looking ahead, Jordahn foresees several elements shaping the future of the air cargo industry. “The air cargo industry will likely see rapid advances in digitalisation, automation and integrated logistics solutions with continued emphasis on the end consumer’s experience,” he predicts. According to Jordahn, Maersk Air Cargo is already leveraging these trends, with a significant focus on digital innovation. “Our team of 5,500 software engineers is dedicated to developing platform solutions that will enhance integrated logistics, driving efficiency and optimising operations.”

Strategic goals and investments

As Maersk Air Cargo continues to expand, its goals for the remainder of 2024 are clear. A key milestone is the delivery of another freighter. “The second Boeing 777 delivery is another milestone, and placing into service both aircraft between China and Europe so that we can capitalise on demand for such a route,” Jordahn notes. Additionally, Jordahn claims the company is focusing its investments on modernising and diversifying its fleet to meet the evolving needs of its core customers.

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Meeting e-commerce demands

The surge in global e-commerce has placed additional pressure on air cargo providers to deliver fast and reliable shipping solutions. Jordhan explains that Maersk Air Cargo has responded by prioritising frequency over capacity, which has resonated with its e-commerce customers. He says: “With our B767F fleet, we have the right aircraft to offer daily point-to-point service on major e-commerce trade lanes. That capability will be further enhanced with the introduction of our two new B777Fs in 2024.” Jordhan clarifies that this strategic focus ensures that Maersk Air Cargo can meet the heightened demands of e-commerce, providing customers with the reliability they require.

Sustainability and regulatory compliance

Sustainability is a central focus for Maersk Air Cargo, aligning with Maersk’s broader goal of becoming a net-zero company by 2040. While the air cargo sector faces unique challenges in achieving this, Jordahn is optimistic about the company’s efforts. “Our path to net-zero has been challenged and approved by the Science Target Based initiative (STBi). We have piloted first ECO Delivery Air transports based on sustainable aviation fuel (SAF) for large international brands,” he shares. Furthermore, according to Jordahn the company is also navigating regulatory complexities by investing in sustainable technologies, such as the new B777 aircraft, and working closely with customers to meet future regulatory requirements.

Leadership challenges and industry dynamics

Reflecting on his position in a leading role, Jordahn acknowledges the dynamic nature of the air cargo industry and the importance of fostering a positive culture within the company. “It’s all about creating a positive winning culture to enable success for our customers and our employees,” he says. Jordhan explains that his experience with Maersk has been “overwhelmingly positive”, and he is excited about the company’s future, particularly as it continues to adapt to the fast-paced changes in the industry.

Growth opportunities

Looking to the future, Jordahn identifies flexibility, responsiveness and innovation as key drivers of success in the air cargo sector. He says: “As customers diversify their supply chains, they seek partners who can adapt to dynamic changes. Maersk Air Cargo has the right team necessary to excel in such a dynamic environment,” he concludes.

In an industry marked by rapid change and increasing demands, Maersk Air Cargo is well-positioned to continue its growth trajectory by leveraging its integrated solutions, technological advancements, and commitment to sustainability.

As the company navigates the challenges and opportunities ahead, it remains focused on delivering value to its customers and driving innovation in the air cargo sector.

OTHER INTERVIEWS IN ABN’s CARGO AIRLINES SENIOR EXECUTIVES INTERVIEW SERIES:

• Greg Schwendinger, American Airlines Cargo – read now
• Jae Dong Eum, Korean Air – read now
• Maksym Sanotskyi, Antonov Airlines – read now
• Stanislas Brun, Etihad Cargo – read now