24 Jul State-of-the-art tech enabled air cargo solutions for the future of Logistics
By the end of December 2022, cargo volumes transported through air cargo stood at 60 million metric tonnes worldwide, which when compared to 2004 level stood at 40.9 million metric tonnes. This is a 60 per cent growth in two decades. And for 2023, already the levels stand at 57 million metric tonnes. Hence, the air cargo industry is growing at a rapid pace despite a looming recession.
However, industry experts believe the potential to be leveraged is far higher and more due to lack of process efficiency in several airports, the industry is not in a position to achieve the desirable numbers. In order to achieve the same, embracing technology at a process level is of utmost importance. However, not all processes are digitized and even the ones digitized are of legacy systems in various airports.
Here are a few air cargo tech solutions that are state-of-the-art in nature and set the tone for the future of the air cargo industry to grow multifold.
Airport Cargo Community System
Air cargo is a booming segment within the airline industry with rising share of revenues. The challenges facing the industry are manifold especially lagging IT infrastructure upgrades. In the next two decades, air cargo traffic is expected to go beyond thrice its current size, out-pacing passenger traffic and thereby providing airlines with greater revenue-generation opportunities.
The air cargo business is swiftly shifting focus from general cargo to highly specialised cargo verticals. In this evolving business scenario, traditional stakeholders of the air cargo industry will need to deploy data analytics and data mining technologies for creating bespoke products for air cargo, which are distinct from those for the passenger business. Airport Cargo Community Systems bridge the gap with regards to standardisation of processes and technological needs of the air cargo value chain.
Most of the major airports across the globe have Airport Cargo Community Systems/ IT air cargo solutions information exchange between its various stakeholders. These structures constitute a Single Window System for Trade. The Trade Facilitation agreement by the World Trade Organisation aims to help make trade across borders (both imports and exports) faster, cheaper and more predictable, while ensuring its safety and security.
An ACS/ IT air cargo solutions is a neutral and open electronic platform aiding intelligent and secure information exchange between its stakeholders. It is a crucial tool in optimising operational efficiencies and enabling digitalisation of the end-to-end air cargo value chain.
A comprehensive Airport Cargo Management System
The sheer quantum of cargo traffic year after year necessitates the deployment of a robust cargo handling software that streamlines operations and optimises operational efficiencies. Disparate legacy systems and siloed infrastructure have been traditionally the Air Cargo industry’s transformational challenges. The need of the hour is investment in Technology to ensure smooth operations and a Future-Ready Air Cargo industry.
An end-to-end IT air cargo solution plugs the gaps in legacy systems while minimising duplication of efforts and documentation. An intelligent IT air cargo solution brings forth transparency and higher levels of dependability. The way forward for the Air Cargo industry hinges on technology adoption and digitalisation that ensures speedy processes and a swifter growth trajectory.
Managing the movement of Cargo at Airports is a tedious task. International Cargo handling is a complex job with diverse functions that are important to conduct seamless cargo movement. Airports across the world dealing with international Cargo movement need to deploy Airport Cargo management systems that are designed to manage the complexities and intricacies involved in Cargo operations.
With an IT cargo solution module, users can experience exemplary Cargo Handling capabilities. It automates operational processes and provides quick and comprehensive information on consignment status, Cargo tracking and terminal operations.
IT cargo solutions enables EDI with Customs, Airlines and other stakeholders. In addition to Import & Export handling processes, this Air Freight software solution also provides for Transhipment, ULD management, Service level management as per AHM801, tracking, terminal & Airline invoicing, mail and courier handling.
IT cargo solution are robust, web-based comprehensive ground handling systems, designed to drive complete operational efficiency and end-to-end real-time visibility to Cargo Handling Airports and independent Ground Handlers. This Air Freight software solution eliminates redundant processes by offering single point of data entry and thorough automation in operational processes. IT cargo solution offers complete information related to consignment status to customers and management.
Digital Freight Corridor
Trade has long been a driving force of economic growth. New production systems, integration of global value chains and trends toward reliance on just-in-time delivery systems mean that more than ever, trade needs to be faster and more reliable. This calls for increasing the quantity and quality of information exchange. Digital connectivity and data flows are supported by hard and soft infrastructure, ranging from cables and wires to data flow regulations, which enable trade transactions.
A digital freight corridor between two countries enhances shipment visibility and optimises flow of cargo data. The collaboratively created digital corridor facilitates flow of information within the stakeholder chain and optimises cargo visibility across the stakeholder network. These digital data corridors can evolve from connecting one cargo network like airport community in one country to airport community in the other country. These hubs can connect multiple countries using the simple principle of data federation and trust.
Logistics e-Marketplace
For years, airlines were craving fixed contracts, while forwarders, egged on by their clients, kept shopping around for the bargain of the day. Today it is the forwarders who are desperate to secure lift, as the ad-hoc market augurs painfully high prices. The air cargo market is changing from a buyer’s market to that of a seller. With airlines adding more dynamic pricing and committing lesser capacity, the forwarder’s business becomes more difficult. The airlines also suffer due to the absence of a single window to reach out to the buyers.
This One-Stop e-Booking Platform assists “cargo rates” discovery and booking procedures for the air cargo industry. Currently, the air cargo industry is heavily dependent on manual and cumbersome processes wherein airline routes and schedules have to be digitally solicited. Absence of a single online source that can provide information pertaining to availability of cargo routes and the corresponding reservation rates to Exporters, Freight Forwarders and Custom Brokers has made the process tedious and prone to malpractices.
With this online e-Booking platform, routes, rates and schedules for cargo booking are readily accessible through the cargo solutions system, thereby benefitting the concerned stakeholders. It also ensures that compliances for further processing of the shipment are met at the point of booking. This booking data is reusable for further shipment processing by way of connecting to other stakeholders like Airports and Airlines.
The platform is equipped with comprehensive modules for RFQ and Quote Management, multi-channel booking with EDI communication with Airlines, GST invoicing, e-payment gateway, tracking and reporting for all stakeholders. A pilot run of this platform has been successfully completed with a leading exporter, one of the largest Freight Forwarding/Customs Broking organizations and a leading airline to ascertain the usability and functionality of the platform.
Electronic Air Waybill Generation
Air cargo still relies heavily on paper documentation for the exchange of shipment information. Each international airfreight shipment can require more than 30 different paper documents – increasing the cost of airfreight and lengthening transport times.
Operations surrounding Logistics industry have evolved from only ‘Cargo’ movement to movement of ‘Information and Cargo’. It is a well-known fact that enormous amount of paperwork is generated in the logistics industry and humongous amount of administrative data entry work goes in moving a shipment from shipper to consignee.
This administrative work does not provide any value addition to an organization. Most logistics organizations would rather prefer to focus on value additions and get rid of administrative work.
An efficient and time saving solution for all the administrative work pertaining to logistics is the need of the hour. Extracting data from key documents such as Air Waybill and converting it into EDI messages followed by sending unified information to electronically enable core business activities.
The AWB is a critical air cargo document which serves as a contract of carriage between a Forwarder and the Carrier. e-Air Waybill (eAWB) was an initiative by the industry and IATA has been promoting it since 2008. e-Air Waybill (eAWB) removes the need of a paper Air Waybill exchange between ground handler/Airline and forwarder. eAWB is an initiative developed with regional stakeholder representatives to eliminate paper Air Waybill (AWB) and replace it with electronic data interchange (EDI) message formats. This significantly simplifies the air freight supply process.
The e-Freight initiative is being implemented in several countries across the globe. The initial focus is on attaining 100% e-Air Waybill (eAWB) worldwide. The first step towards eAWB is to enable online filing of AWB by the Freight Forwarder through EDI with airlines. An e-Air Waybill (eAWB) EDI platform is an access to this Digitalisation process.
It provides an efficient and time saving solution for all the administrative work pertaining to logistics. Based on a combination of machine learning (ML) and optical character recognition (OCR), PING (e-Air Waybill) service/cargo solution extracts data from documents like Air Waybill and converts the same into EDI messages. These messages are auto-transmitted to airlines/ground handling agents. Also, freight forwarders and other stakeholders can send information electronically thus enables them to focus on their core business activities.
Increasing innovation with tech-enabled cargo solutions
Technology enabled cargo solutions in the industry are soaring in the current times and the same is expected to soar even further. Yet, in some geographies the fear of financial investment and considering tech adoption as exposing the entire airport cargo complex to vulnerabilities. Raising awareness on these vulnerabilities will be of utmost importance in the coming years.