Podcast: Airfreight industry must address people, data, flexibility

The airfreight industry should focus on attracting talent, implementing open data standards and providing flexibility for the rest of 2026 and beyond, according to Flexport. “We have a lot of experienced people today approaching retirement, and the pipeline behind them is very, very thin in all roles: in operations, in customs, in commercial roles,” Milena Milenkovic, head of airfreight for the EMEA region at Flexport, says in this week’s episode of “Cargo Facts Connect.” “And if we don’t fix that, we will create a people problem that no new aircraft or software can solve.” The industry is not doing enough to appeal to young people, and it can do that by being more vocal about the vital role that air cargo plays, Milenkovic says. Two other areas that air cargo must continue to improve are data and flexibility, according to Milenkovic. The industry has the technology to process and share the increasing amount of data generated today but still does not make use of it effectively, she says. Additionally, in a market characterized by instability, carriers must develop flexible options for customers and build redundancy into their networks. Overall, Milenkovic believes the largest hurdle for the industry is still its inability to recruit and retain skilled personnel, and inspire their excitement. “I started this career when I was twenty-two,” she says. “I still love it, and it’s twenty plus years later.” Tune in to this week’s episode of “Cargo Facts Connect” to hear Milenkovic speak with Senior Associate Editor Robert Luke. A transcript is available below. This transcript has been generated by software and some transcription errors may remain. Robert Luke Hello and welcome to another episode of Cargo Facts Connect, the podcast of cargo facts, the publication of record for the air cargo and freighter aircraft industries for over 40 years. I’m senior associate editor Robert Luke, and it’s Tuesday, May 26th. I recently spoke with Milena Milenkovic, head of airfreight for EMEA at Flexport, who believes that investing in tomorrow's generation to attract new talent to the air cargo sector should be one of the industry's main priorities. Take a listen. Robert Luke Hi, Milena. It's great to see you again, and it is a pleasure to finally sit down and have this one-on-one with you. How are you doing? Milena Milenkovic Hi, Robert. Thanks for having me here. It's also my pleasure talking to you again and seeing you again after a while that we met. I'm doing great. Robert Luke My first question for you, Milena, is where do you see the biggest operational challenges in the global Air Cargo system today? And how can the industry address them? Milena Milenkovic Great question. Well, the biggest challenge that we are all aware of is the gap between where capacity exists and where demand actually is. So when passenger travel goes up or down, belly Cargo capacity moves with it. And freighter networks have not fully made up for that. And on top of that, like ground handlers, customs, tracking too much of the cargo chain still runs on paper and phone calls. So what we end up with is a shipment that moves at. aircraft speed, but then it can happen that it sits for days waiting on a document or a manual handoff. So this is 1. Another challenge that I see and it's very relevant for this very moment in 2026 is the fuel shortage, because so far we have not really had this kind of problem in the industry. But with the recent escalations in the Middle East, we have seen what closing the Strait of Hormuz can do to the whole global trade and the whole airline industry, actually, and Air Cargo industry. So Besides the prices that are moving together with the price per barrel, one really big challenge that we have today is the fuel shortage, because actually a lot of airlines and a lot of airports around the world are preparing for the worst. So in case the Strait of Hormuz does not open, in the near future, certain countries will just simply not get their kerosene. They will just simply not get their fuel. And that will be a disaster. And how we can address that, I think, One of the solutions is what the airlines and the airports are actually putting in place, and that is the actually preserving the fuel that they have. So they're trying to sort the flights based on the importance and based on the relevance, based on how many passengers they have or how... Crowded that route is, so that's one of the one of the solutions that that that that we can actually go for in in this case. The challenge that I'm actually worrying about the most, besides these two that I just mentioned, is it's not really the infrastructure or the fuel or the technology. The challenge that I worry about the most is people. And what I mean by this is the fact that Air Cargo is lately not attracting enough new talent, and we are in the industry not doing enough to change that. So we have most young professionals these days, they simply don't look and don't think about this industry when they imagine an exciting career in logistics. They do not look and think about cargo terminals or warehouses. And I have a concrete example for Europe to, from Europe to actually illustrate what I mean by this. So in 2024, the air traffic control delays in Europe increased by over 100% compared to the 10 years before. And that's not because we ran out of airspace or because demand suddenly doubled. Actually, flight numbers only grew by about 7% in that same period. The reason was That there are not enough people. There are 87% of those delays were caused by staff shortages. And when this hits the most is July and August, which is the peak Cargo season. And that's the moment when we can actually least afford this kind of problems. I think I read that Ayata put the cost of all these failures at over 2 billion in a single year, which is... a very big amount. So we have a lot of experienced people today approaching retirement, and the pipeline behind them is very, very thin in all roles, basically, in operations, in customs, in commercial roles. And if we don't fix that, we will create a people problem that no new aircraft or software can solve. So I think how we can address that, I think we should start with telling our story better because our industry is actually fascinating. It's really cool because we move vaccines, we move semiconductors, we move fashion, critical parts of manufacturing, and we're just not being loud enough about that. So I think this would be my top three of four. Robert Luke Milena, this actually is a very important point that you made in addition to the other two that you addressed with the fuel and operational challenges. You know, and as I listen to you, I hear the same passion that I have for aircraft. You have for the role that you perform in with Flexport as the handler of all of the operations in the EMEA. How can we, as professionals in this industry with so much experience and knowledge, pass not only that on to the next generation, but to give them the fuel to be passionate about what it is we do every day? Just in your own words, I know this is a little off guard. But you know, this touches the heart as I hear you focus on the people aspect of the industry that we definitely need to address. Milena Milenkovic Yeah, I mean, I think we, in the industry and I'm also part of this and guilty, I think we take for granted that a lot of people kind of know what we are doing and how we are doing it and how our world is made, while in reality, it's not like that. I mean, We all, I mean, most of the people have at least once traveled on an airplane. And I can tell you, I've never met a person that is not excited about that trip. You know, you have, you have, you have the airports that are that are that are amazing and you have catering on board and all these amazing services around you. And I bet that everybody is asking, how do things get there and why are things where they are? And why do we get what we get when we are on an aircraft? And we have those answers, you know? So I think we should just be a little bit more vocal about it and maybe Yeah, talk about it more. Get people to be excited about it, because I started this career when I was 22. I love it. I still love it. It's 20 plus years later. I really love it. And I would love to see somebody that starts like I did at that same age, talking about it with the same passion that I do. And a lot of colleagues of mine and peers of mine still do. So it's very, very fascinating. There is a world behind Air Cargo. Robert Luke You know, as you mentioned that, I just thought about this in particular. I think one approach we could take, Milena, is to emphasize one of the key roles that we play in supporting the world is delivering their e-commerce and time critical shipments and how obviously that important that is to them because when they place an order on the internet, they want it the next day. So as we speak on that, how is it that how can airports or Cargo hubs evolve to not to accommodate that growth in that segment, but also use it as a way to encourage more of the younger generation to get involved? Because this is definitely something that they're going to want going forward. Milena Milenkovic Yeah, I think it would because if you buy online and you want things in a day or two days after, then you should a little bit know what is going on behind, right? So, I mean, e-commerce is something that completely changed the industry in the past years and it changed completely what moves through a hub. Now we have smaller packages, much higher volumes, and much tighter delivery deadlines. But what we have, and there is, that's where the mismatch is, we have most cargo terminals that are built for pallets. and not for parcels. So in my view, hubs need to invest in technology that sorts high volumes of shipments quickly. Then they would need to have a better road and transport connections, and most importantly, much faster customs clearance. So if you have programs that allow Cargo to be cleared before it even arrives, and systems that focus checks on higher risk shipments, that's the right direction in my view. And all the airports that push hard for these frameworks will win the cargo business in the future. We already have some examples of those airports. And I would also say that airports need to think specifically about temperature sensitive cargo, like medicine, and about creating fast lanes for urgent freight. We don't have enough of that. And like you also said, these are no longer extras. These things are actually expected. Robert Luke Okay. And Milena, you know, as you emphasize that, you know, one of the things that come to mind is, you know, and I don't know if I'm looking for you to actually provide an answer to this, but what type of rescaling or modernization or alteration of the existing model that we're using to support Air Cargo movement globally would have to take place to accelerate the movement of e-commerce or time critical shipment. But in addition to that, We also have to think about going green and protecting the planet and the implementation of sustainable aviation fuel has to be factored into this equation. So what steps can the industry take to not only accelerate the adoption of SAF, but how to also keep operations economically viable because this is not a low-cost approach or strategy that has to be developed or integrated into our day-to-day operations. Milena Milenkovic Yeah, well, the economics only work if everyone in the chain shares the cost. And right now, that's not really happening because what happens now is airlines pay for the fuel, they add a surcharge, and then we have shippers that push back. So in order to make it all happen. We need a more fair model where investment in sustainable fuel is a shared commitment and it's not something that gets cut when you have the next rate negotiation. So I think that a few things that would genuinely make a difference could be a long-term purchase agreement that give fuel producers the to grow, blending requirements that make it a level playing field so no airline is punished for doing the right thing, and clearer reporting so customers know what they're actually buying. For example, at Flexport, we are having these conversations directly with customers. Sustainability, that's an increasingly part of how companies choose their logistic partners nowadays. And shippers who care about their carbon footprint are actually willing to commit also commercially. And this is, in my view, the signal that the industry needs more of. Robert Luke Okay. And Milena, as you speak on a very sound approach to making it affordable for everybody involved in the industry, I need to ask you, do we see this being more of a long-term commitment and could another option that could help the industry come sooner, such as the emerging technologies like the electric and hybrid or hydrogen propulsion vehicles that could potentially change the delivery of Air Cargo and time sensitive shipments and e-commerce. And could you see that happening sooner over the next two decades before we get really into the full scale development of SAF? Milena Milenkovic Well, I think that will be gradual because electric and hybrid aircraft, they make real sense today at least for short routes. So island connections, regional express, and drone deliveries in cities. So these are actually meaningful and this development of these three that I just mentioned, it's moving faster than many people would expect. However, hydrogen could be a bigger shift, but it's much further away. If you just think that the infrastructure needed for producing it, storing it, you need to adapt airports. It means that we are probably looking at the mid 2030s. before we see like a real commercial use of it. And the wider adoption, I think it will take maybe even longer than that. What should happen now is that new aircraft orders should be made with flexibility in mind, and airports should already start planning for hydrogen already maybe today alongside with everything else. It also connects a little bit to the fuel story that I mentioned in the beginning when we have the shortage of it. I think one advantage that Cargo has over passenger aviation is that we are more willing to try new aircraft types because we don't have the same passenger comfort concerns. We have that flexibility, but at the same time, flexibility on our side, on Cargo side, should not mean shortcuts. And what I mean by that is that the safety bar needs to be identical, whether there's a passenger in the seat or a pellet on board. And that's because there are people operating these cargo flights. So on top of that, cargo has its own risks. You're flying boxes, but some of those boxes contain batteries that can catch fire, or maybe sometimes certain chemicals cannot be stored next to each other. Or we have packages being delivered by drones and they share the skies with the full size aircraft for the first time. And, you know, all these situations are clearly regulated and we all should move at the pace that safety certification requires. I think that's just the right way to do it. Robert Luke Milena, you've addressed the challenges that we're facing industry-wide. You've expressed the passionate desire to build up the manpower to support the Air Cargo industry going forward. And you also expanded on the next or the future developments of SAF and potentially the electric hybrid or hydrogen propulsion systems that are under development as we speak. What are some top two or three existing standard operation procedures or systems that are currently implemented in the Air Cargo industry from your perspective that need to be improved or addressed appropriately this year so that we can move the industry forward with the resources, with the operations, with the equipment that we currently have in place? Milena Milenkovic Yeah, well, I'll go back to the talent because I think it should get a lot of attention, much more than it has now, because in short, we experience people leaving the industry and not enough people coming in. So if we don't invest in training and making ourselves as Air Cargo visible as a real career option, we will hit the wall over there. So I would say that's number one. Then I would say incorrect data because the technology exists. We all have it. We just need to be more accurate. If we have a shipment that disappears between the warehouse and the aircraft, that's actually a problem that costs everyone in the chain. Shippers, forwarders, airlines and ultimately consumers who do not receive their packages on time. So we would need, the industry would need to move from talking about open data standards to actually using them. And I would add a third because we are in 2026 and these things could be relevant. I think our industry needs to find a way to get ahead of the instability that shapes trade routes around the world. We need more flexible networks and we need real backup plans for when things go wrong. Like we in the past six or seven years, we have seen so many things go not really the way we wanted it for one reason or the other. I think a great example of this done well is Emirates, Emirates Cargo, who built a road feed service after the regional conflict disrupted the air access in the area. And their idea is simple. An airport became unavailable, in this case because of a conflict, but it could be because of extreme weather or an infrastructure problem, and they just needed another way to keep the Cargo moving for the customers. I think all airlines should be building that kind of backup into their networks, because the ones that are doing it now will be in a much stronger position than those who are still only focused on running things as efficiently as possible and not thinking about what can happen if, because the if is becoming a reality in the past years, much more often than we would like to. Robert Luke On that note, Milena, I want to thank you for your wonderful insights. It's been a pleasure having this discussion. I felt your passion. I felt your input come from what you deal with on a day-to-day basis. I look forward to not only communicating with you in the future, but holding more discussions like these. I thank you for joining me today, and again, look forward to speaking with you again real soon. Milena Milenkovic Thank you, Robert. It was a pleasure being here with you today. Robert Luke That was Milena Milenkovic, head of airfreight for EMEA at Flexport. And that’s all the time we have for today. For more coverage of the freighter aircraft market, visit cargofacts.com. Thank you very much for tuning in, and join us again next time. Subscribe to Cargo Facts Connect on iTunes or Spotify , or download the episode on Transistor .

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