11 Nov Why Cargo Community System is the right fit solution to overcome Cargo stack congestion?
Cargo congestion has gone from bad to worse at major Airports in the world, especially USA. Moreover, the upcoming period after the pandemic too looked uncertain as they were experiencing import export surge. A year later, the condition still looks precarious as the delays have caused overflowing warehouses, and lack of equipment to carry the cargo from one end to the other.
The problem stems from the rush of ad hoc all-cargo aircraft being substituted for grounded passenger jets amid the travel downturn combined with the surge in e-commerce orders, inventory replenishment and ocean shipping backlogs that have companies turning to air to move their goods.
However, with complete technology adoption i.e., with all stakeholders adopting to cargo community systems, the ongoing chaos might come to an end. The serious congestion that has plagued major airports can be relieved as stakeholder turn to technology.
Automated handling with less resources
The onslaught of shipments is colliding with staffing shortages at airport warehouses, which are unable to quickly break down or consolidate shipments for transfer to other supply chain parties. The paper-loving Air Cargo industry has to deal with 7-9 documents and their documentation which takes up hours of time of the airport staff. Paperless transactions on Airport Cargo Community System (ACS) enables free exchange of information and supply chain visibility. Documents like electronic air waybill, delivery order can be processed online and TSP charges can be collected through secured payment gateway.
Better coordinated landside operations
ACS captures and collates data from all stakeholders – truckers, handlers, forwarders, and airlines – to better schedule landside operations. Truck arrivals and departures are managed as per slots to avoid any gate congestion. The intuitive ACS can learn and adapt to the needs of the airport in which it is operating, which is vital for truly achieving digital transformation.
Track and trace facility
Over 79 per cent of air cargo stakeholders believe they have limited to zero visibility on cargo movement. A cargo community system encourages communication among stakeholders in the land side and air side. EDI messages, milestone tracking, temperature monitoring (pharma and perishables), clearance status, etc are available to the concerned parties at the tip of their fingers through mobile applications. It also empowers all stakeholders to interact within each other to curtail the complexities involved in manual and legacy systems. Just by eliminating the communication bottleneck, significant number of complexities can be reduced.
Reduces manual intervention with collaboration
In order to achieve the sustainability goals, all stakeholders i.e., ground handlers, forwarders/consolidators, consignees, Shipping Lines/Airlines, Airport/Seaport authorities, Governments, Regulatory bodies etc. must act as enablers and ensure the short term and long term targets are met. This will increase the agility of operations and drive the logistics industry towards achieving sustainability goals.
Technology adoption is inevitable
With all the changes happening, technology adoption is completely inevitable for all stakeholders in the logistics industry. While already a sizable number of stakeholders have adhered to it, some are still hesitant to accept technology. Once they begin using, they will realize the benefits it could offer. Technologies like Cargo Community System, Digital Freight Corridor, and Logistics e-Marketplace are making waves across the industry. Going forward, we can see an upswing in the utility of these technologies.
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