The company Freschi & Schiavoni was not just an “early adopter” of the Cargo Start solutions HANDLER GATE and START CITY: the Milan-based logistics organization, which made the history of air cargo in Italy with its unique “off-airport” handling services, was in fact the initiator of the projects. We have asked Primo & Betty Schiavoni what were the specific needs that brought to the development of this systems and why they consider their cooperation with Cargo Start strategic. For the future of the industry, too.
Q. HANDLER GATE, the Cargo Management System Handler Gate, dedicated to handling agents for the exchange of electronic messages with airlines, was developed around the need of Freschi & Schiavoni. What is the background exactly?
A. Primo Schiavoni: Until a few years ago, our customers, airlines operating in Italy, had to employ dedicated personnel to enter Master and House Airway Bill information (FWB and FHL messages) manually in the cargo management system. As IATA started to require electronic data transmission, airlines and ground handlers had to enable their management systems to communicate with each other, using IATA Cargo IMP and Cargo XML messages.
Therefore, we had to implement a “gateway” to efficiently access the management systems of our customers and issue the “Ready for Carriage” status for the cargo we handled on their behalf. Of course, it was essential to partner with an IT third-party provider with in-depth know-how of the air cargo operations processes, besides high-end technical skills.
As a company that offers highly customized services, we partner with companies with the same approach. HANDLER GATE was in fact developed by the Cargo Start experts around our needs in close cooperation with our staff. The most important requirements for us were a user-friendly interface, to perform all data exchange tasks in one screen, and a flexible platform allowing us to easily integrate data configurations from different carriers over time. Currently, we are using HANDLER GATE to exchange messages with Lufthansa Cargo, Swiss WorldCargo, Singapore Airlines and AirBridgeCargo Airlines.
Q. HANDLER GATE was further tailored to the needs of “off-airport handling”, a special handling model which is typical of the Italian air cargo market. Can you tell us more about it?
A. Primo Schiavoni: In Italy, most European belly cargo carriers still rely on Road Feeder Service (RFS) and off-airport handlers because they mainly operate with small aircraft having little or no cargo capacity. We were actually the initiators of the air cargo “off-airport” handling model in Italy, together with Swissair back in the ‘70s.
Our company collects cargo from the airlines’ offline stations with domestic truck connections and transports it to our off-airport terminal of Milan Vignate – where we also receive cargo from forwarders; the cargo gets offloaded, secured, goes through customs, gets palletized and then loaded on daily “scheduled” trucks which feed the carriers’ intercontinental flights.
In a nutshell, thanks to HANDLER GATE, when the cargo leaves our terminal by truck, it is “Ready for Carriage” on an aircraft. Due to the fact that it has to be transported by truck, the system includes truck- related data, such as plate number, driver name and seal number.
Q. Freschi & Schiavoni was also a co-developer of START CITY – the special module by Cargo Start to facilitate the exchange of information with the IT platform Smart City MXP. What is the background of the Smart City MXP ecosystem?
A. Primo Schiavoni: Besides offering RFS and off-airport handling services to airlines, we are a trucking company transporting cargo on behalf of freight forwarders to the hub of Milan Malpensa (MXP). 50% of air cargo traffic in Italy is transported via MXP – the main hub for full freighter carriers. Especially on peak days like Fridays, waiting times for trucks can exceed two hours at the MXP Cargo City handling gates.
As an initiative of SEA (Società Esercizi Aeroportuali), the company that manages the airports of Milan Malpensa and Milan Linate, the IT platform Smart City MXP was launched to improve efficiency by facilitating the electronic interfacing between all the players operating in the MXP ecosystem and speed up acceptance and loading operations.
Representatives of forwarders, carriers, trucking companies including Freschi & Schiavoni, and customs authorities participated in the planning and development phase of the platform. The Cargo Start IT and business experts were also actively involved. Unfortunately, not all stakeholders participated until the completion of the testing phase, and the system is still used by a minority of them. And Smart City MXP can bring some benefits only if it is used by at least 80% of players.
Q. In which way could the START CITY module encourage participation in the Smart City project?
A. Betty Schiavoni: One of the issues is that most players – especially small forwarding companies – have some limitations with their IT infrastructure. That’s how, together with the Cargo Start team, we came to the idea of a module to further facilitate interfacing with the platform. START CITY can be easily integrated into the management systems – and allows all players to play their part, and anticipate data transmission before their cargo reaches MXP with complete data.
Trucking companies could play a crucial role for the success of the initiative – because they are delivering the cargo after all. That’s why the START CITY solution by Cargo Start could be key: the system is accessible as an app on the truck driver’s mobile phone and allows dedicated – fast access through the issuing of a bar code.
Due to the pandemic situation, the Smart City MXP initiative could not be further promoted, but with the cooperation of all the parties involved, including SEA, A.N.A.M.A. (Associazione Nazione Agenti Merci Aeree) and Cargo Start as a facilitator, we are planning to relaunch it this year. It is important that the forwarding community realizes that the initiative is worth the investment and that it can bring great benefits to their business. So, for the future, I do hope forwarders will take it as an opportunity to upgrade of their digital capabilities.
Q. Let’s talk about the future: how is your company moving into the future? Do you think the industry is ready for it?
A. Betty Schiavoni: In Italy, the majority of logistics players, especially forwarders, are very small companies that cannot afford major digital investments: what is really needed is the allocation of special funds to support innovation and digital transformation. More than ever in this time of great uncertainty, these small players which make the backbone of the Italian economy, must be encouraged to adapt.
As a forward-looking company, Freschi & Schiavoni puts a strong focus on digitalization, automation and sustainability. Our warehouse is already semi-automated, with an RFID-based management system and is equipped with photovoltaic systems; in addition, besides using the latest truck models, we are testing alternative-fuels vehicles.
Innovation and digital transformation are the only ways into the future, so the industry as a whole needs to make an effort in this direction. In this journey, logistics players, especially SME companies, need the support of facilitators like Cargo Start. Freschi & Schiavoni and Cargo Start share the same open-minded and pragmatic approach that is needed to adapt to an ever-changing business environment and to bring air cargo to the next level.
More information about Freschi & Schiavoni at: freschieschiavoni.it