Innovations in air cargo: Transforming the Skies with Technology and Collaboration
Three cargo executives share insights into the latest trends and advancements driving the air cargo industry forward into the 21st century tech revolution.
By Mohammed Irshad
The world of air cargo has always been synonymous with speed, efficiency, and reliability. It serves as a vital lifeline for global trade and connects businesses and communities across borders.
However, as demands for modern commerce evolve and customer expectations changes, the air cargo industry finds itself at a critical juncture of transformation. In this era of digitalization and technological breakthroughs, the industry is witnessing an exciting wave of innovation that is reshaping its operations, optimizing supply chains, and ensuring a sustainable future.
In this feature, Air Cargo Update had the unique opportunity to delve deep into the realm of air cargo innovation, engaging in insightful interviews with three of the industry’s most influential personalities. Leonard Rodrigues, Head of Revenue Management & Network Planning at Etihad Cargo, a and Ashwin Bhat, CEO of Lufthansa Cargo.
These cargo executives shared their insights into the latest trends and advancements driving the air cargo industry forward into the 21st century tech revolution.
Innovative Technologies Shaping the Industry
“When it comes to innovation, technology is the driving force,” asserts Leonard Rodrigues, Head of Revenue Management & Network Planning at Etihad Cargo.
Digitalization, and the integration of artificial intelligence and machine learning are revolutionizing air cargo operations, Rodrigues noted. Etihad Cargo, for instance, has fully embraced digital solutions, simplifying interactions with customers, partners, and stakeholders.
“Our revamped online booking portal, enhanced with AI and machine learning capabilities, allows our customers to book cargo in just 45 seconds, providing them with tailored solutions that meet their individual needs,” he said.
Robotic process automation (RPA) is another groundbreaking technology that streamlines operations for both Etihad Cargo and its customers. “Through RPA, we have been able to automate manual labor processes, driving greater efficiencies and cost savings,” explains Rodrigues.
Data analytics also plays a pivotal role in shaping decisions and optimizing capacity. “By harnessing the power of data insights, we can identify patterns and trends, allowing for more informed and agile decision-making,” adds Rodrigues. In the competitive air cargo landscape, the ability to optimize operations and respond promptly to changing market dynamics is crucial for success.
Cultivating Widespread Adoption of Innovative Practices
Addressing the challenges to widespread innovation, Rodrigues emphasizes the need for greater industry normalization. “The fragmented nature of our industry requires the development of common APIs and the adoption of improved industry standards like the IATA One Record format to unlock the full potential of data scientists’ efforts,” he states. Etihad Cargo is actively working on partner platforms and direct API connections with key forwarders, streamlining the booking process and promoting digitalization.
Innovation adoption also hinges on collaboration and customer feedback. “At Etihad Cargo, we firmly believe in involving our customers and partners during the development of new digital tools. This collaborative approach ensures that the solutions we create not only meet the industry’s needs effectively but also resonate with our stakeholders,” says Rodrigues.
By actively seeking feedback and involving all relevant parties, Etihad Cargo minimizes resistance to change and accelerates the adoption of innovative practices. This collaborative spirit has been instrumental in driving innovation at Etihad Cargo and will continue to be a driving force in their future endeavors.
“CargoAi allows forwarders to make e-bookings online and enables ‘peer to peer’ connections between forwarders and airline systems.”
Successful Implementation of Innovation
Cedric Millet, Chief Strategy & Digital Officer of ECS Group and President of CargoTech, shares insights into the successful implementation of innovative practices in the air cargo industry.
He highlights CargoAi, a digital platform that has transformed the transactional booking process for forwarders. “CargoAi allows forwarders to make e-bookings online and enables ‘peer to peer’ connections between forwarders and airline systems,” says Millet. The platform stands out with its impressive number of carriers, advanced technology, and user-friendly experience compared to competitors.
CargoTech’s investment in Wiremind Cargo further showcases the power of AI in driving smarter decision-making.
Millet explains, “Wiremind Cargo focuses on revenue optimization and dynamic pricing, and they have mastered revenue optimization technology with their team of data scientists and air cargo experts.” The innovative solutions offered by the company empower forwarders to optimize pricing strategies and adapt to market dynamics effectively.
Capacity forecasting is another area where AI-driven solutions are making a significant impact. “Wiremind Cargo’s capacity forecasting solution enables forwarders to accurately predict cargo volume and payload, enhancing their operational efficiency,” adds Millet. By leveraging AI technologies, forwarders can make informed decisions and optimize their cargo capacity more effectively.
Power of Collaboration in Fostering Innovation
Collaboration is vital to bring about transformative change in the air cargo industry, according to Millet.
In CargoTech’s case, its approach revolves around uniting leading air cargo technology players to accelerate the adoption of technology-driven solutions.
“By fostering collaboration among experts and industry players, CargoTech aims to address challenges and expedite the industry’s transformation,” says Millet. Through strategic partnerships, CargoTech aims to drive innovation and create a positive impact on the industry.
The air cargo industry’s scattered nature presents unique challenges, making collaboration all the more critical. Millet states, “The industry’s fragmented structure requires concerted efforts to ensure changes are far-reaching and impactful.” CargoTech’s vision to unite technology and business experts aligns with its goal of driving transformational change across the industry.
Data Analytics and Digitalization as Innovation Enablers
Ashwin Bhat, CEO of Lufthansa Cargo, highlights the significant role of data analytics and digitalization in driving innovation. The airline’s investments in digital services and improved booking tools demonstrate its commitment to enhancing customer service.
“By leveraging the ONE Record integration and IoT data from smart ULDs, Lufthansa Cargo can offer end-to-end visibility and faster solutions to customers,” said Bhat. The company’s focus on expanding capacity and software solutions for the eCommerce market segment reflects its dedication to meeting the evolving needs of the industry.
Data-driven innovation at Lufthansa Cargo extends beyond optimizing operations; it also includes a strong focus on sustainability initiatives. Bhat explains, “Our ‘Sustainable Choice’ service enables customers to transport freight in a CO2-neutral manner, reflecting our commitment to environmental responsibility.”
By reducing carbon emissions and fostering sustainable practices, Lufthansa Cargo aims to contribute to a greener and more environmentally conscious future for the air cargo industry.
Emerging Trends and Future Prospects
Looking ahead, Bhat discusses the growing importance of sustainability in the air cargo industry. “Reducing CO2 emissions is a shared mission, and collaboration with partners and customers. It is crucial in achieving our environmental goals,” said Bhat.
The “Sustainable Choice” service offers customers the option to transport freight in a CO2-neutral manner, encouraging a collective effort towards a greener future.
In terms of technology adoption, data analytics, and AI will continue to play a pivotal role in shaping air cargo operations. “The use of digital twins, AI-driven forecasting, and robotic systems are some of the innovations poised to drive the industry forward,” says Bhat. By harnessing the power of data and AI, Lufthansa Cargo aims to optimize processes, enhance decision-making, and deliver an even better customer experience.
Moreover, advancements in blockchain technology are gaining traction within the air cargo industry. “Blockchain promises enhanced transparency and security in air cargo transactions,” explains Bhat. By creating a tamper-resistant and decentralized ledger, blockchain technology can streamline the flow of information and reduce processing time, ultimately benefiting the entire supply chain.
To meet the increasing demand for speed and efficiency, the industry is exploring the potential of supersonic air freight. Companies like Boom Supersonic are working on developing supersonic cargo aircraft that can drastically reduce delivery times, revolutionizing the air cargo landscape. Such advancements in speed and efficiency are poised to transform the way cargo is transported and delivered globally.
Additionally, the rise of urban air mobility and drone delivery systems is opening new possibilities for last-mile delivery in densely populated areas. “These technologies have the potential to reshape logistics in urban centers and bridge the gap between traditional cargo operations and emerging e-commerce demands,” says Bhat. The evolution of urban air mobility and drone delivery systems presents exciting opportunities for the air cargo industry to address last-mile challenges and cater to the growing demands of online commerce.
A connected and sustainable future
The air cargo industry is undergoing a transformative journey, driven by innovation, collaboration, and customer-centricity. With digitalization, AI, and data analytics at its core, the industry is streamlining operations, optimizing revenue, and offering sustainable solutions.
The collaboration among industry leaders and technology players, as witnessed through initiatives pushed by companies like CargoTech, is paving the way for a more connected, efficient, and sustainable future for air cargo.
As we venture into this exciting era, these visionary leaders are guiding the industry towards a new horizon of possibilities.
