How digital distribution is transforming the air cargo booking landscape
The global air freight software market is projected to grow from $6.34 billion in 2023 to $7.41 billion by 2030, at a CAGR of 2.3% during the forecast period (Fortune Business insights)
By Ayesha Rashid
Rapid advancements in digital technology have revolutionized the logistics and transportation industry in recent years, offering countless opportunities for air cargo companies to streamline their operations and improve efficiency.
As the demand for air cargo continues to grow, the industry needs to adapt and embrace the technological advancements that are shaping the way goods are being transported around the world.
From blockchain technology to artificial intelligence, these innovations are redefining the way air cargo is booked and managed, ultimately leading to a more cost-effective and customer-centric experience.
The global air freight software market is projected to grow from $6.34 billion in 2023 to $7.41 billion by 2030, at a CAGR of 2.3% during the forecast period (Fortune Business insights).
According to Web Cargo, in 2023, and over the last few years, airlines have provided digital air cargo offerings with impressively rapid adoption. Carriers representing over 50% of air cargo capacity are now digitized – a staggering 16x surge since 2018.
To cope with a daily landscape shift, caused by economic and geopolitical events, carriers accelerated their shift to digital tools (which is also the key stepping stone to enabling forwarder digital transformation).
Airlines realized that the only way to serve customers wherever, whenever they are needed, was by giving real-time access to carrier schedules, prices, and capacity for real-time eBooking.
Stephane Noll, Head of Digital Engagement and Transformation at CHAMP Cargosystems and Guillaume Crozier, dnata’s SVP of UAE Cargo & Global Cargo Strategy, discuss the latest developments in digital distribution and how they are shaping the future of air cargo booking. They also spoke in detail about the role of AI in the digital distribution industry in an email interview with Air Cargo Update.
Current Trends in Digital Platform Adoption
The current trends in digital platform adoption for air cargo booking revolve around the integration of advanced technologies such as artificial intelligence, machine learning, and blockchain.
These technologies are being leveraged to enhance the transparency, efficiency, and security of the air cargo booking process.
Additionally, there’s a growing emphasis on the development of user-friendly interfaces and mobile applications to empower shippers and freight forwarders with greater control and visibility over their cargo bookings.
The evolution of digital distribution platforms in air cargo booking is driven by the need to optimize operational processes, reduce costs, and meet the increasing demands of the market.
With the integration of advanced technologies, digital platforms are poised to reshape the future of air cargo booking by providing more agile and responsive solutions to the industry.
Crozier explains, “Airport community systems are certainly being adopted at a greater rate by the industry. They are an agile system when it comes to architecture and technology when we need better processing times and better security. Given the increase in cybersecurity threats, airport community systems are certainly being pushed forward more by many hub airports.
“dnata plans to implement our new-generation Calogi platform and airport community system, which is a scalable solution that we can implement across our network”.
CHAMP Cargosystems’ Stephane Noll said, “Artificial Intelligence (AI) has become a transformative force, particularly accelerated by the e-commerce boom. From predictive analytics ensuring optimal inventory levels to route optimization minimizing delays, AI is reshaping logistics. Capacity planning, demand forecasting, and warehouse automation leverage AI for efficient operations. Supply chain visibility, risk management, and customer service benefit from AI tools, fostering the emergence of innovative players like Project44 and FourKites.
“Notably, AI aids document automation, exemplified by CHAMP A2ZScan, and enhances security screening for safer, compliant cargo transport. The air cargo industry’s journey with AI continues, unlocking new dimensions of efficiency and innovation.”
Digital Distribution Innovations
Assuming the role of technology in shaping the future of air cargo booking, it’s an undeniable fact that disruptive technologies are also redefining the industry.
From blockchain to artificial intelligence, these innovations are revolutionizing the way air cargo is booked, managed, and tracked.
At the forefront of disruptive technologies in air cargo booking is blockchain, a decentralized and transparent digital ledger that ensures the security and traceability of transactions.
By integrating blockchain into air cargo booking systems, stakeholders gain real-time visibility into the movement of goods, minimize the risk of fraud, and streamline the entire booking process. The use of blockchain technology also enhances data security and privacy, offering a level of trust and transparency that was previously unattainable.
Another essential component of the digital revolution in air cargo booking is artificial intelligence (AI) and machine learning technologies are optimizing logistics processes and decision-making. Intelligent algorithms analyze vast amounts of data to forecast demand, optimize routes, and automate pricing and capacity management.
By leveraging AI and machine learning, logistics companies achieve greater operational efficiency, reduce costs, and deliver a better customer experience. These technologies are revolutionizing the way logistics operations are executed, paving the way for a more intelligent and responsive air cargo booking ecosystem.
Stephane Noll says, “As the air cargo industry charts its course toward greater efficiency, the integration of blockchain technology, AI, and Machine Learning (ML) stands poised to redefine route planning, scheduling, and resource allocation. While ML is already optimizing passenger and integrator operations, its application in air cargo logistics is a strategic focus. From dynamic route planning, and predictive maintenance scheduling, to adaptive real-time decision-making, ML algorithms leverage real-time data and historical analysis. This transformative technology optimizes capacity planning, aircraft assignment, crew scheduling, and anomaly detection, ensuring a data-driven and adaptive approach. The industry’s journey with ML heralds a new era of increased efficiency, cost reduction, and customer service enhancement, emphasizing the pivotal role of high-quality data in seizing these opportunities.”
Online Booking Platforms
For dnata, Calogi has been a game-changer, allowing for seamless and efficient booking processes. With the use of this digital distribution, dnata now offers stakeholders a range of reliable, secure, simple, and cost-effective e-cargo business solutions without cumbersome paperwork and long wait times.
“Calogi is a comprehensive state-of-the-art air cargo services portal that offers stakeholders a range of reliable, secure, simple, and cost-effective e-cargo business solutions. Designed to simplify the cargo business, Calogi enables local supply chain stakeholders to interact seamlessly, thus enhancing the transaction process. Information is entered once by the originator and used throughout the shipment life cycle, making the process effortless and paperless.
“We position ourselves as a driving force for transformative change, making cutting-edge technology accessible and cost-effective for the air cargo industry. This enables us to connect with all our stakeholders, covering the handling operation from end to end, driving paperless volumes. This also helps us to comply with the increasing level of data exchange we need to have between customs or across countries ahead of the export of the shipment, using IATA’s Pre-Loading Advance Cargo Information (PLACI), or Inbound Control System,” said Crozier.
Real-Time Tracking and Data Analytics
Data is crucial in the air cargo industry, and with real-time tracking and data analytics, companies can make more informed decisions.
Having access to real-time tracking allows companies to monitor their shipments in transit, while data analytics provide valuable insights into performance, customer behavior, and market trends.
Crozier adds, “The ICS is a principle guiding countries to increase the level of data they are sharing with the consignees, ahead of the shipment being exported.
“This is all important because it will be implemented into the airport community system and our data strategy in our OneCargo system, which will then become more and more capable and compliant. dnata continues to implement the OneCargo system, which serves as the foundation of the company’s digitization strategy and aims to standardize procedures at all stations worldwide. By eliminating redundancies and manual check documents, OneCargo significantly increases operational efficiency.
“Calogi facilitates effective communication between GHA (Ground Handling Agents) and other industry stakeholders by providing a unified e-commerce platform. Calogi has changed the air cargo business forever in Dubai. Our tremendous success in the region is proof of the extent to which our solution meets the needs and expectations of the air freight community. And the bigger we became, the more benefits we offered to our subscribers”.
According to Noll, Conversational AI and Chatbots, Sentiment Analysis, Multilingual NLP, Contextual Understanding, Voice Recognition, Interactive and Dynamic Content, Summarization and Abstractive Text Generation and AI-powered virtual Assistants collectively contribute to the evolution of customer service and communication within the air cargo industry. As NLP technologies continue to progress, we can expect more efficient, personalized, and seamless interactions between cargo companies and their customers, ultimately enhancing the overall customer experience.
The Implementation of Computer Vision Technology
Computer vision technology is an application of artificial intelligence that enables machines to interpret and understand digital images. The air cargo industry is on the verge of adopting computer vision technology to improve safety and efficiency.
The fields of use are very broad and include recognition and detection of airplanes, airport security and management, plane identification, autonomous flying of drones, and even missile guidance systems.
“Computer vision technology is also something we see as becoming key. This includes the upward trend to digitize the acceptance and handling process and give more real time visibility of their shipments inbound or outbound, to the customer, stakeholders or authorities. This is what we are currently doing day in, day out, and we continue to invest in new technologies to provide better efficiency and value for money for our customers,” Crozier said.
Crozier further explains that diverse industry verticals are adopting emerging technologies such as artificial intelligence, computer vision, data insights, and robotics process automation, among others. Therefore, air cargo must be at the forefront of its digital transformation.
“Building on our success, we are now branching out and taking our game-changing solution to the outside world, challenging traditional industry processes, and allowing all stakeholders, large and small, to conduct e-cargo” Crozier concludes our email interview.
Noll said, “to prepare for 5G Connectivity, Edge Computing, Autonomous Vehicles and Drones, Advanced Robotics, Explainable AI and AI Ethics, Digital Twins, Blockchain Technology, Natural Language Processing Advancements, Human-Robot Collaboration Frameworks, Climate and Sustainability Initiatives and other emerging trends and technologies, companies in the air cargo industry should stay informed about technological advancements, engage in pilot projects to test new solutions, and invest in training and upskilling their workforce to adapt to the changing technological landscape”.
According to Noll, by leveraging AI and robotics in Real-time Location Tracking, Sensor Integration, Cargo Screening, Image Recognition, Anomaly Detection, Secure Storage and Retrieval, Intelligent Surveillance and Integration with Regulatory Compliance, the air cargo industry can significantly enhance its security measures. These technologies provide a more proactive and efficient approach to cargo tracking, monitoring, and threat detection, ultimately reducing risks and strengthening the overall security posture of air cargo operations.
Noll further explained, “Air Cargo is currently experiencing challenges around attracting and retaining workers. New generations are not interested in moving boxes in warehouses or loading/unloading aircraft in challenging weather conditions. So, automation is no longer a luxury but an essential, as this is an opportunity to improve the attractiveness of our industry by making it more modern.”
Adding, “The Federal Aviation Administration (FAA) in the United States or the European Union Aviation Safety Agency (EASA) in Europe have both issued a roadmap for the implementation of AI and robotics. It is a learning process which will significantly evolve and requires piloting, like we have been doing for programs such as Advance Cargo Information (pre-loading and pre-arrival filings)”.
