Charting the Course: Tom Owen on Cathay Cargo's Pharma Supply Chain Strategy

Cathay Cargo is a recognised leader in the pharmaceutical supply chain, with a long-standing reputation for excellence in cargo operations. As a valued partner of LogiPharma for many years, the airline has played a key role in shaping the industry. Ahead of LogiPharma’s 25th anniversary, we had the privilege of sitting down with Tom Owen, Director Cargo, Cathay, for an insightful Q&A.

In this conversation, we discuss the airline’s key objectives for 2025 and explore how industry leaders can ensure the integrity of pharma logistics

Tell us a bit about yourself?

I've had the privilege of building a diverse and rewarding career within the Cathay group, spanning over two decades. For the majority of my career, I focused on the passenger side of the business, particularly in revenue management, sales, and distribution. This experience provided me with a comprehensive understanding of the airline industry's core operations. In my current role, I'm responsible for Cathay Cargo's global operations, which includes overseeing Air Hong Kong (our DHL operation) and serving as the Chairman of the Cathay Cargo Terminal.

This advanced facility in Hong Kong, built across seven floors, showcases the dynamic nature of air cargo operations. What truly excites me about this role is our purpose in cargo: to move cargo that matters to the world. Every day, I witness the tangible impact of our work as we link supply chains and facilitate global trade. From transporting life-saving pharmaceuticals and enabling international events to supporting e-commerce and carrying exotic foods, our operations touch lives and businesses worldwide.

Working with the exceptional team at Cathay Cargo makes this role even more rewarding. Their dedication and expertise contribute significantly to our success in carrying cargo that truly matters to people around the globe. It's a pleasure and a privilege to lead such a passionate team in this fascinating sector of the aviation industry.

What were some of the key successes for Cathay Cargo last year, and what are your objectives for 2025?

Last year, Cathay had a strong financial performance, with cargo playing a key role in advancing our four-year strategy to become the leading air cargo carrier. We relaunched our brand and saw a significant increase in customer Net Promoter Scores, reflecting improved service. Operationally, we made significant gains, enhancing performance and customer satisfaction.

Our sustainability efforts included deals for sustainable aviation fuel, and we introduced "Cargo Connect," a new tool that boosted efficiency and employee satisfaction. Looking forward, we're continuing to build on our successes. We've consulted with customers to understand their needs and pain points, and we're developing sales campaigns to raise awareness of these enhanced offerings.

Additionally, we're expanding our network by increasing frequencies on passenger routes and launching new destinations. This growth is supported by Hong Kong's strategic location and the operational benefits of its third runway. Our goal remains to become the world's best air cargo carrier, and we're motivated by recent industry recognition, including being named Air Transport World Cargo Carrier of the Year.

How does Cathay Cargo approach shipment and ensure integrity when it comes to pharma logistics?

Cathay Cargo employs a rigorous approach to pharmaceutical logistics, acknowledging the critical nature of these shipments. For active pharma, we utilise specialised containers and robust monitoring systems to guarantee precise temperature control. Passive pharma receives the same meticulous handling due to its life-critical nature. Our Hong Kong terminal features a dedicated pharma room with advanced cold chain infrastructure, including inflatable docks and cool dollies for temperature-controlled transit.

For operations beyond Hong Kong, Cathay Cargo partners with facilities meeting these stringent standards and is developing dedicated pharma corridors, such as Hong Kong-Brussels and Hong Kong-Miami. To ensure shipment integrity, our 24/7 Operations Control Centre uses Ultra Track for near real-time data on pressure, temperature, and light sensitivity, enabling immediate intervention. Priority handling and a dedicated team further safeguard these shipments throughout their journey.

What are the main challenges you face when it comes to temperature-sensitive shipments, and how are you addressing them?

Maintaining cold chain continuity, particularly during stages managed by freight forwarders, poses a significant challenge. These stages, before and after our direct control, can impact shipment integrity. To mitigate this, we collaborate with trusted partners who possess high-quality facilities and specialised expertise. Cathay Cargo provides a range of environmentally controlled containers, catering to specific pharma company preferences.

To enhance visibility, we integrate external container data with our Ultra Track system for real-time monitoring. Within our Hong Kong terminal, AI-driven systems like "Intense Eye" use cameras to monitor cargo movement, flagging irregularities. These proactive measures ensure swift responses to potential disruptions, safeguarding shipment integrity.

How do you leverage technology for real-time monitoring and ensure transparency? 

Cathay Cargo integrates proprietary and external technologies for comprehensive real-time monitoring. Our integrated operations in Hong Kong, where we manage the terminal, airline, and ground handling, facilitate seamless communication and coordination. For operations outside Hong Kong, we select partners based on stringent quality and infrastructure criteria, prioritising reliability over cost.

We ensure transparency through our Operations Control Centre’s real-time tracking, proactive customer notifications via automated emails and our website, and direct personal communication for critical situations. Industry collaborations, such as IATA CEIV Pharma certification, further enhance our service.

How do you plan to maintain your position as industry leaders as regulations evolve? 

We're committed to continuous adaptation and innovation. Our significant investment in digitisation over the past four years, including track and trace capabilities, digital airway bills, and online booking, positions us to meet evolving customer expectations. We also prioritise customer feedback, evidenced by the introduction of new temperature ranges for our Cathay Pharma service.

Furthermore, we emphasise data-driven decision-making to optimise on-time performance and network efficiency. By leveraging real-time insights and advanced analytics, we remain agile in the face of market fluctuations, including the dynamic e-commerce landscape.

How do you plan to stay ahead in the pharma supply chain space?

Cathay Cargo plans to stay at the forefront through substantial investments in new aircraft technology and strategic partnerships. The acquisition of Airbus A350 freighters will enhance our capacity for handling temperature-sensitive products. We are also expanding our network of certified pharma lanes, such as the reinstated Brussels route, utilising wide-body aircraft for pharmaceutical transport.

Continuous improvement of our pharma handling facilities and digital integration across the supply chain is paramount. We are encouraging global partners to enhance their capabilities and integrate with our systems, enabling enhanced tracking and monitoring. By focusing on advanced aircraft, certified lanes, and digital connectivity, we aim to deliver superior reliability, efficiency, and visibility to our pharmaceutical customers.