Digital twin technology offers transformative benefits for the air cargo industry by creating real-time virtual replicas of physical assets and processes. While the logistics continues to evolve, digital twins are stepping in to reshape planning and operations, providing unprecedented visibility, efficiency, and accuracy. Digital twins can replicate the entire ecosystem at airports, including aircraft, ground support equipment, and cargo flow. This enables airport authorities to simulate different scenarios, such as cargo handling, truck movements in and out of the airport and processing of critical documents.
The most interesting application of digital twin is sustainability where simulating different scenarios is possible. For example, ways to reduce fuel consumption, optimising delivery routes, and minimising carbon footprints to name a few can be simulated. Simulating disruptions such as demand supply slump, upcoming natural calamities etc. can be done seamlessly.
Volatility in e-commerce capacity, supply chain issues and geopolitical tensions globally rocked the air cargo industry throughout 2024. However, all these uncertainties are expected to fade away in the coming few days as conditions are changing gradually. Airports are now continuously looking at building network resilience with a sense of sustainability.
This focus is attributable to CrowdStrike IT outage, which happened in July 2024. When the systems completely depend on technology, it is essential to thwart such outages in a quick span of time. Hence, building resilience will be the focal point for the entire year.
Apart from this, augmented reality and wearables could be the center of discussion around training and real-time data access as immersive learning is the spotlight. Also, there will be continued efforts to leverage big data and predictive AI for forecasting as well as performance monitoring. Deployment of drones and autonomous vehicles to scale-up safety and security in airports too could build up. Possibly there could be a regulation too for drones in the airport ecosystem and its use cases could also be expanded.
Artificial Intelligence (AI) is transforming the air logistics industry by optimising processes, enhancing data accuracy, and enabling better supply chain management. AI-driven solutions allow for improved demand forecasting and cost reductions through efficient storage, minimizing idle times, and boosting flexibility in supply chain responses. However, adopting AI comes with challenges, including data security risks, third-party data management, and the need for harmonized standards across various platforms.
A key approach to leveraging AI in logistics is through collaborative cargo community systems (CCS), which facilitate data sharing and create a unified digital landscape. These systems connect stakeholders, such as airlines, customs, and ground handlers, enabling seamless interactions that enhance efficiency and transparency. The concept of a ‘combined SWOT analysis’ helps to balance strengths and weaknesses, using AI’s real-time data insights to mitigate risks and create a competitive advantage for the entity and the industry as whole.
Despite the promising benefits, AI adoption remains slow, primarily due to the lack of industry-wide collaboration and standardisation. A promising solution is a Minimum Viable Product (MVP) approach, where stakeholders participate in a shared system to showcase AI’s potential benefits. Ultimately, a collective effort with a focus on collaboration and shared goals can drive the AI-led transformation in logistics, creating a more responsive and efficient industry.
In the increasingly digital world of air cargo, airports face heightened cybersecurity threats. With global supply chains relying on real-time data exchange, the risk of cyberattacks disrupting critical operations has never been higher. The air cargo ecosystem involves over 40 primary stakeholders-airlines, freight forwarders, ground handlers, customs authorities, and more—each operating with disparate IT systems, varying levels of security, and potential vulnerabilities. This complex web of interconnected systems creates multiple entry points for cyberattacks, making it possible for threats to originate from any stakeholder in the chain.
To combat these threats, Cargo Community Systems (CCS) play a pivotal role. A CCS is an integrated platform that enables secure, real-time communication between stakeholders. By offering a centralized, encrypted system for data exchange, CCS ensures that information is safeguarded from cyberattacks and unauthorized access.
Furthermore, CCS enhances cybersecurity by utilizing advanced encryption protocols, multi-factor authentication, and role-based access control, limiting data exposure. It also ensures compliance with global data protection regulations like GDPR, while maintaining the integrity and confidentiality of data.
By providing a secure, unified platform for all air cargo participants, Cargo Community Systems strengthen the resilience of airports against cyber threats, ensuring the smooth, secure, and efficient flow of goods across the globe. In the face of evolving cybersecurity challenges, CCS proves to be a vital tool in safeguarding the future of air cargo at airports.
Trapid growth of cross-border e-commerce is transforming the air cargo industry. In 2017, ecommerce accounted for just 10% of total air cargo volume; by 2022, this had doubled to 20%, and it is projected to reach 25% by 2027. As a result, airlines are now generating 18% of their revenue from e-commerce, a figure that is expected to rise in the coming years. This growth demands that airlines, in collaboration with airpos and other key players, evolve into modern service providers capable of meeting the ever-increasing expectations of e-commerce consumers.
Consumers expect the same speed, predictability, and visibility from cross-border transactions as they do from domestic ones. The pressure to meet these demands is intensified by the standards set by industry giants like Amazon, which offer same-day and next-day deliveries. Cargo Community Systems (CCS) play a crucial role in this transformation. By integrating all stakeholders—airlines, forwarders, customs, and ground handlers—into a unified platform, CCS streamline air cargo e-commerce operations. This enhanced coordination leads to faster deliveries, reduced errors, and improved tracking at piece-level, all critical for satisfying e-commerce customers. In addition to speed, sustainability has become a critical factor, particularly for younger consumers who prioritize green logistics practices. The air cargo industry must therefore focus on enhancing operational efficiency through digitisation. Streamlining processes and improving customer relationships are essential first steps. As the sector embraces these changes, it will be better positioned to handle the future growth of e-commerce and maintain its vital role in the global supply chain.
We are in the era of artificial intelligence (AI), and its transformative power is evident across all industries, including air cargo. AI has proven beneficial in various aspects of air cargo operations, such as cargo handling, first-mile and last-mile delivery, route and traffic management, and capacity handling. Successful use cases include AI-based cargo handling algorithms, predictive maintenance, automated warehouses, dynamic pricing models, and demand and supply forecasting.
AI is revolutionizing air cargo security by deploying advanced surveillance systems and anomaly detection algorithms. These systems can monitor and analyse video feeds in real-time, identifying unauthorized access or suspicious activities around airside and cargo areas, thereby enhancing security measures. Additionally, AI chatbots and virtual assistants are increasingly used to handle customer inquiries and track shipments, providing real-time updates and improving the customer service experience while allowing human agents to focus on more complex issues.
The adoption of AI in the air cargo industry will bring numerous benefits in the coming years, including reduced operational costs, faster turnaround times, and improved customer satisfaction. It can provide valuable insights through data analytics, helping stakeholders make informed decisions and anticipate market trends.
Ethical considerations and governance measures are crucial as the air cargo industry integrates AI, particularly regarding safety, security, and privacy. AI should be viewed as an enabler rather than an end goal, supporting commercial teams to devise innovative use cases that drive value through better decision-making.
In conclusion, AI’s integration into air cargo operations is a game-changer, promising significant advancements in efficiency, security, and customer service. As the industry embraces AI, it must balance innovation with practical and ethical considerations to fully harness the technology’s potential.
Consistency in the flow of data from the shipper to the consignee across these modes is essential.
By exchanging real-time status of shipments between two airports, as well as shipment data to eliminate duplicate processes, the Digital Air Freight Corridor aims to provide a completely transparent supply chain.
To ensure that Customs, Handlers, and other stakeholders in the destination airport are well informed and equipped to handle incoming freight on time, shipment arrival information can be shared in advance.
A Digital Air Freight Corridor’s Benefits
Data flow optimization
Increasing shipments add to the complexity, thus reducing the quality of cargo movement.
While handling incoming shipments, managing data flows and analyzing incoming data takes a backseat.
By connecting the digital corridors of different airports, information will be exchanged more frequently, logistics services will be digitalized, border controls will be simplified, and trade will get easier. Therefore, data analysis and sharing among stakeholders are well facilitated.
Visibility & Transparency in Trade
Digital freight corridors offer real-time visibility. Both import and export stakeholders can request and receive information prior to cargo arrival and departure.
Micro- and macro-level tracking of cargo movement within the airport ecosystem is possible at every milestone.
Transparency deserves more focus than visibility, which is revered the most. All industries are experiencing a digitization drive, and transparency is seen as the main reason many of them are going digital.
To ensure transparency in trade, digital document exchange is the key.
A sustainable future
It’s no secret that climate change and global warming are becoming realities, and several global bodies are urging organizations to adopt sustainable practices.
Digital Freight Corridor enables paperless trade and reduces documentation requirements.
Due to the end-to-end nature of the processes, little physical documentation is required. Towards sustainable development
Technology has made the world smaller and faster.Real time communication with people from all over the world at different time zones through phones and gadgets
