As the air cargo industry adapts to the challenges of a globalized economy, digital innovations such as the Internet of Things (IoT), artificial intelligence (AI) and blockchain are emerging as transformative forces. These technologies not only improve operational efficiency and security, but also redefine how the industry approaches logistics, customer service and sustainability.
Digitization of air cargo
The adoption of digital tools has become a necessity in an industry where accuracy, speed and reliability are of the utmost importance. Technologies such as IoT, AI and blockchain enable air cargo operators to track shipments in real time, predict demand patterns and ensure data integrity throughout the supply chain.
“Digital innovation is no longer a competitive advantage – it’s an operational imperative,” said Satish Lakkaraju, CEO of Garudavega, a brand of Nextgen Logistics.
“For example, IoT sensors provide real-time updates on shipping conditions, which is critical for industries such as pharmaceuticals and perishables. This level of transparency increases trust and enables stakeholders to make informed decisions quickly.”
Improving predictability and efficiency
Artificial intelligence is proving to be a game changer for the air cargo industry, especially in demand forecasting, route optimization and predictive maintenance. By analyzing large amounts of data, AI algorithms can identify patterns and provide actionable insights to improve operational efficiency.
Gautam Mandal, Chief Executive Officer of Octoloop.com by Cargo Flash, highlighted the potential of AI to create agile supply chains by adding that: “AI helps us anticipate demand fluctuations and optimize capacity utilization. During peak seasons, for example, AI can suggest alternative routes or carriers to avoid bottlenecks, ensuring shipments reach their destinations on time. This capability is invaluable in a sector where delays can have significant financial and reputational impacts.”
Revolutionary transparency and security
Blockchain technology addresses two of the most pressing challenges in air cargo – data transparency and security. By creating an immutable ledger of transactions, blockchain ensures that every step of the cargo journey is documented and accessible to authorized stakeholders.
Alanood Obaid Alsuwaidi, Senior Vice President Cargo MEAA at Menzies Aviation, spoke about blockchain’s role in building a safer and more transparent ecosystem: “Blockchain not only increases security by reducing the risk of fraud, but also promotes collaboration across the supply chain Stakeholders can access real-time data on shipment status, documentation and compliance, eliminating delays caused by manual processes and improving overall efficiency.”
Business challenges
While digital innovations hold great promise, the air cargo industry continues to grapple with challenges such as high operating costs, fragmented infrastructure and a lack of standardization.
Saurabh Kumar, Chief Executive Officer of Kaleesuwari Refinery, emphasized the importance of addressing these issues through collaborative efforts: “Technology can only reach its full potential if it is supported by industry-wide adoption and regulatory alignment. The standardization of digital documentation, for example, can significantly reduce transit times and administrative burdens, benefiting all stakeholders.”
Smart technologies
For sectors such as pharmaceuticals, cold chain logistics is a critical area where smart technologies are making a significant impact.
Binu Kumar, General Manager Supply Chain at Thermo Fisher Scientific, elaborated on how IoT and AI are revolutionizing this space: “Temperature-sensitive cargo requires precision monitoring to ensure product integrity. IoT sensors provide real-time data on temperature, humidity and other critical parameters, enabling us to take corrective actions immediately if anomalies occur. This level of control changes how we manage cold chain logistics.”
Policy and cooperation
As the air cargo industry navigates this transformative period, the role of policy and collaboration between sectors will be critical. The adoption of digital technologies must be supported by regulatory frameworks that encourage innovation while ensuring compliance with international standards.
The future of air cargo lies in its ability to embrace change and adapt to changing market demands. As Alsuwaidi aptly summarized,
“The air cargo industry is at a crossroads. By leveraging digital innovations and fostering collaboration, we can create a smarter, more resilient logistics ecosystem that meets the demands of a rapidly changing world.”
