One general observation in the freight industry is that it is often considered behind the passenger side for years in terms of digital adoption. It therefore creates an opportunity to draw lessons from the passenger sector’s embrace of digital instruments, from online market locations to advanced income management systems and apply them to cargo.
‘From my previous role on the passenger side of the industry, I have seen significant shifts, especially in the acceptance of technology and the rise of market places. These experiences influenced my journey to Cargotech, where we aimed to bring similar technological advances and innovations to the cargo sector, ”said Cargotech’s strategy head Michael Teoh.
The challenges in the digitalization of cargo are many, especially to align the ecosystem. No single solution addresses every problem, so cooperation is critical.
“Cargotech, as it now stands, consists of five entities: Wiremind, Rotate, Cargoai, Aerios and ECS Group’s Cargo Digital Factory,” Teho continued.
‘From a technological and progress point of view is the progress we have seen in the passenger segment, which we strive to replicate and adapt in the cargo world. The opportunities are great, although the challenges are equally important. In the management of value chain solutions, Cargotech has a unique role to play and can provide a significant value to the air freight industry. “
Innovative ecosystem
Cargotech’s mission is to create a one-time store to help airlines, land handlers and other value chain partners to help their digital transformation journey, and work with like-minded players to address specific problems.
These partners range from those in the early stages – looking for solutions such as booking management, tariff distribution or income management – to those with more adult strategies.
“Cargotech’s approach is centered on collaboration with players in the industry. Today, many of the projects we are approached are driven by clients’ problem statements, ”Teoh emphasized.
‘They admit that there is not a single solution that can address all the challenges in freight. Instead, they come to us and ask how Cargotech can work with them to tackle these issues together.
‘If we address one problem, it often solves a part of a larger value chain challenge. These problems span areas such as discussion, capacity management, prediction, income management, data availability and insights. To solve it, an ecosystem approach is needed as each player has a role to play. However, true success comes from deeper collaboration across the ecosystem to deliver comprehensive solutions. This is the vision that Cargotech works to bring to life. “
Proactive approach
Cargotech’s approach is rooted in an innovative mindset. Since joining in 2024, Teoh has worked with the co-founders and leadership teams of the portfolio companies and found that one thing stands out: their collective commitment to solving customer and partner challenges without being deterred by operational restrictions or external restrictions.
‘Our focus is not on emphasizing challenges such as incomplete records, outdated regulations or systemic barriers. Instead, we ask, “What can we do from a technology point of view to address this problem?” Teoh is expanding.
‘Of course, compliance and legal requirements remain priorities, but we do not allow external dependencies or slower moving entities to determine our pace of innovation. We acknowledge that if we simply follow the existing playbook of the industry and wait for policymakers or associations to take the lead, we will always be left behind. True innovation requires us to think ahead, challenge the status quo and actively create solutions that drive the industry forward.
“This pre -thinking approach ensures that we not only solve problems, but also reform the industry to meet the demands of today and tomorrow.”
Bridging air freight and technology
Cargotech is working with a team of about 100 people in its portfolio companies today. This group consists of a combination of cargo experts and technology specialists, which enables the grouping to provide comprehensive support to its clients.
“Although our technology instruments can support these different approaches, each type of partnership needs a customized solution. For example, combining capacity, aligning sales strategies and marketing the offer jointly may be general goals, but the tools and processes must be finely set to match the details of the partnership, ”Teoh explained.
“With the strategic insight available and the cargo expertise of our portfolio companies, we work together to design and develop solutions that are adapted to meet our clients’ unique requirements.
‘If a client approaches us with a problem statement or a clear vision, we are working closely together to develop a custom solution. In addition, we are looking for opportunities to connect with other players in the ecosystem who face similar challenges. This intersection of data and insights on partners provides for greater innovation and efficiency. “
