Despite substantial efforts and investment in digitalisation, the airfreight industry still features manual paperwork and data duplication that create inefficiency in some parts of the supply chain.
Progress varies, owing to lack of funds and regulatory support while ‘top-down’ industry-level initiatives like the e-air waybill, introduced by IATA are still not universally adopted.
Aside from attempts by industry bodies like IATA, there have been interventions at the state level, such as the US’ Air Cargo Advance Screening (ACAS) Program that came into effect on 12 June 2018.
ACAS requires the submission of advanced air cargo information on shipments arriving in the US from abroad – previously a voluntary process in which many airlines already participated, but now mandatory.
The air cargo supply chain involves multiple private and public stakeholders, each with its own systems and priorities. Effective cooperation and compliance are therefore not necessarily straightforward.
According to Jan-Wilhelm Breithaupt, chief executive at ULD management company Jettainer: “The top priority is end-to-end data visibility. Without seamless data sharing across all stakeholders, efficiency and resilience remain out of reach.
“Progress will come through industry-wide standards and collaboration, such as IATA initiatives like One Record [see panel] , combined with investment in modern platforms and emerging technologies like AI and IoT. It’s not just about digitising processes; it’s about creating a connected ecosystem that benefits all stakeholders.”
Indeed: “At the end of the day, the pace at which digitalisation transforms air cargo handling hinges on the benefits it provides to the whole community,” the World Bank notes in a report entitled Air Cargo Digitalization: From EDI to Community Systems published in October 2024.
Airport cargo community systems (ACCS) such as those at Brussels and Changi airports are digital platforms that connect the various stakeholders in the air cargo supply chain within a specific community.
An example of a ‘bottom-up’ approach to digitalisation, recent developments in ACCS include digital truck slot booking solutions aimed at improving the flow of cargo to and from airport warehouses.
At the global level, Covid-19 accelerated the adoption of digital solutions, with the demand for e-commerce also playing a key role.
The results of all these factors – industry efforts, government regulation, corporate/community initiatives and macro developments – remain mixed, and the World Bank is clear that “there is no ‘one size fits all’ solution to expedite digitalisation”.
Budgets, for one thing, can be a stumbling block in the adoption of new technologies – and there is always the question of who should bear the cost of something like an ACCS.
Areas of focus
IATA’s 2025 Vision for the Future of Air Cargo Facilities white paper is bullish, though, stating that handling facilities of the future will “enable seamless data exchange, end-to-end visibility, and AI-driven operational optimisation”.
The association says digitalisation and automation are key priorities, with cargo community systems, data exchange and artificial intelligence being integrated to enhance efficiency and tracking transparency. Technologies such as RFID, data loggers and IoT-based tracking are increasingly integrated into air cargo operations.
In this regard, Jettainer is equipping its ULD fleet with next-generation IoT tracking technology from Trackonomy in order to bring real-time, end-to-end visibility to the ULD supply chain “with unprecedented accuracy and intelligence”, the company says.
Trackonomy connects to JettwareNG [the latest generation of Jettainer’s cloud-based IT solution, launched in March 2025] via API, feeding real-time tracker data to enrich ULD information.
Cellular trackers act as mobile readers, eliminating the need for costly fixed networks. Jettainer is the first ULD management provider to bring this innovation to the market, Breithaupt says.
“Tracking has become a critical factor in air cargo operations to monitor and control supply chains and respond proactively to irregularities,” he points out.
Furthermore: “Tracking is essential because the most common irregularities are delays caused by weather or congestion at major hubs. These disruptions often lead to transhipment backlogs and equipment shortages.
“They become extremely costly when high-value or time-critical cargo is involved – such as pharmaceuticals, just-in-time production components, or aircraft parts for grounded planes. Every hour of delay can mean significant financial and operational impact.”
Wilhelm Breithaupt, Jettainer. Image: ©
Real-time transparency and control can help sectors like pharmaceuticals or aerospace to protect their cargo and keep supply chains running.
Jettainer is also integrating IBS Software’s iCargo and iPartner Handling digital cargo management platforms with JettwareNG via an API interface to enable faster, more secure and seamless data exchange.
Meanwhile, IBS recently saw its full iCargo product suite implemented at Delta Cargo as the carrier migrates from a 30-year-old legacy system.
Other benefits of digital tools include demand forecasting; capacity optimisation; resource planning; enhanced collaboration across the supply chain; better operational resilience and service reliability; improved regulatory compliance; and better customer service.
“Automated cargo handling systems and robotics are also being adopted to reduce processing times and minimise labour-intensive operations,” IATA adds.
These are all important areas of focus in the push to digitalise air cargo, but the work doesn’t end there.
Amar More, co-founder and chief executive at IT provider Kale Logistics Solutions, cautions: “Cybersecurity should be prioritised to a large extent as information warfare between countries might surge in 2026 and beyond.
“The more robust the security system, the more powerful will be the countries’ logistics industry. Therefore, spending enough on data security and setting frameworks are pretty essential.”
Questions
There are inherent challenges with the large-scale adoption of digital solutions generally, and AI in particular. One example is the impact on the existing human workforce.
IATA’s white paper notes: “As automation and AI adoption accelerate, workforce transformation will be critical, requiring upskilling and new collaboration models between human operators and intelligent systems.”
The expertise needed to retrain human workers, not to mention the cost of doing so, are questions that airfreight stakeholders must answer if they intend to keep pace with digital developments.
More positively, in an article published in May 2024 by TIACA, Vitaly Smilianets, founder and chief executive of Awery Aviation Software, says AI “holds the key to fostering sustainability and attracting and retaining top talent in the industry. By automating routine tasks and empowering existing staff to focus on value-added activities, AI not only enhances efficiency but also creates a more attractive and dynamic work environment.”
Therefore: “AI technology opens the door for new entrants to the air cargo industry, bringing with them fresh perspectives, skill sets, and experiences that can propel the industry forward,” he believes.
Another question worth asking is whether there is a danger of over-reliance on digital solutions. How resilient would the supply chain be in the event of, for instance, a large-scale data breach or loss, perhaps owing to a power outage such as those seen in several European countries in 2025?
How would humans cope in that scenario, given that passing over decision making to (for instance) AI tools could impair our ability to think critically and solve problems? Besides which, poorly trained AI could make worse decisions than a human would.
“This is very much true in today’s sense,” More believes. “People are chasing AI to a significant extent. As on date, for anything and everything the world is running after AI. This over-reliance might have detrimental effects, and it can also open up to data breaches.”
Despite these concerns, however, “IT is the backbone of air cargo – without it, nothing moves,” says Breithaupt.
Jettainer boasts 99.9% system availability. It also runs regular audits and has strong business continuity plans, supported by Lufthansa’s expertise.
“Digital reliance is a reality, but we’re fully prepared to keep operations resilient,” Breithaupt declares.
That will remain a key focus going forward, as with its new JettwareNG architecture and advanced tracking in place, the company’s next big step is integrating AI in 2026 to further enhance ULD balancing and operational efficiency.
Kale, meanwhile, has established an AI development centre that identifies opportunities for large-scale AI intervention in the logistics and supply chain space.
“However, the utility has to be sustainable,” More points out, touching on the environmental impact of the industry’s increasing use of digital solutions.
The United Nations Environment Programme (UNEP) states: “The proliferating data centres that house AI servers produce electronic waste. They are large consumers of water [for cooling] , which is becoming scarce in many places.
“They rely on critical minerals and rare elements, which are often mined unsustainably. And they use massive amounts of electricity, spurring the emission of planet-warming greenhouse gases.”
Air cargo, of course, accounts for only a fraction of global data centre usage – but as governments develop regulations around AI and sustainability, companies including airlines, forwarders and the like may be required to disclose and/or mitigate the environmental impact of any AI-based products and services.
Nonetheless, it is clear that the air cargo industry is moving toward a future where digitalisation and automation “will define the next generation of air cargo operations”, IATA concludes.
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