AI is widely accepted by the global air cargo and logistics sectors considering the benefits that it offers. AI is believed to be revolutionising the global supply chains by impacting route optimisation, predictive maintenance, real-time tracking and enhancing overall operational efficiency.
Ritika Arora Bhola
Until a few years ago, the burgeoning potential of Artificial Intelligence (AI)for automating the business processes in the air cargo and logistics sectors was taken with half-suppressed laughter by the industry experts, but today, AI has taken the lead and has presented reliable and promising results in the forwarding business, which are being praised by the global experts.
From identifying efficient routes for airlines, improving fuel efficiency, cargo routing, capacity optimisation, improving warehouse operations to dynamic rates distribution, everything has been taken care of by AI, with enhanced efficiency and minimal time. The advanced technology is believed to have assisted in reducing logistical costs too.
While AI offers substantial benefits, including improved efficiency and data-driven decision-making, it also presents a set of challenges such as high cost of implementation, potential for job displacement, initial investment, cybersecurity, and regulations. The industry must prioritise upskilling current employees and attract new talent with expertise in AI and data analysis. Collaboration with academia and technology firms can also ease this transition, ensuring a workforce equipped to harness the power of AI. Balancing the pros and cons will be essential as the industry navigates this technological evolution. AI in air cargo certainly promises a brighter future—one with increased efficiency and lower costs, among others.
CARGOTALK speaks to industry stalwarts to find out if AI is a boon or bane for the air cargo and logistics sectors.
AI to aid in real-time tracking, pricing
Parvinder Singh, Managing Director, Hans Infomatic
The global air cargo industry is at a critical juncture where AI adoption is not only viable but also necessary. With increasing demand for faster and efficient services, AI can enhance operational efficiency by automating processes, optimising routes, and predicting demand. As the industry moves towards digitalisation, AI will be a cornerstone in achieving streamlined operations and costs. In the coming years, AI will revolutionise air cargo by enabling real-time tracking, predictive maintenance, dynamic pricing models, and lead to substantial cost savings, improved cargo handling, and enhanced customer satisfaction.”
Improving operational efficiency through AI
Rajneesh Kharbanda, General Manager, Air Cargo, CJ Darcl Logistics
The industry has made strides since the government introduced its tripod strategy, focusing on hub & spoke models and transhipment hubs in tier I, II and III cities. This transformation was enhanced by embracing AI to improve operational efficiency. AI will change the sector by optimising routing, improving demand forecasting, and enabling predictive maintenance, leading to cost savings and increased reliability. The logistics industry has challenges to address such as availability of skilled manpower among others. As per a study conducted by CargoWise, lack of resources spur tech implementation as a barrier at 53 per cent and workforce resistance at 38 per cent.”
AI integration to optimise routes, forecast delays
Kunal Maheshwari, Chief Growth Officer, Softlink Global
The air cargo industry is increasingly embracing technological advancements. While complete AI integration might require further development, there is a growing openness to AI-powered solutions for specific tasks. AI can optimise routes, predict delays, and automate repetitive tasks, leading to faster TATs and lower operational costs. New skills will be required within the logistics industry to understand, manage, and maintain AI systems. The workforce will need to imparted training in data analysis, AI interpretation, and collaboration with AI tools. It can improve efficiency, decision-making, reduce costs, enhanced safety and streamline operations.”
Predictive analysis must for growth, development
Mike Bhaskaran, Group Chief Operating Officer, Digital Technology, DP World
The air cargo industry is soaring towards a future powered by AI. Companies such as Searates are leading the charge, using AI to streamline operations and improve tracking. This is driven by the need for gaining a competitive advantage with solutions for real-time decision-making and predictive analytics becoming essential for efficiency and growth. The benefits are clear—AI optimises logistics, reduces costs, and boosts reliability. American Airlines for example boast 90 per cent accuracy in cargo bookings with AI, enables better resource allocation. These tools will enhance demand forecasting, route optimisation and maintenance scheduling, leading to faster deliveries.”
Small players don’t invest in AI due to fiscal constraints
Abhishek Goyal, Executive Director, Aeroprime Group
Several air cargo firms and airports have started integrating AI into their systems to enhance various aspects of their operations, from predictive maintenance to route optimisation. However, the readiness varies across different regions and companies. Larger and financially robust players are ahead in this journey, investing in AI-powered solutions and forming strategic partnerships with tech companies. Smaller players may still be in the exploratory phase, hindered by budget constraints and a lack of expertise. Overall, while the industry is still in a progress mode, the momentum is still building. AI will deliver benefits such as operational efficiency, predictive maintenance, security and risk management.”
AI deployed for improving efficiency in supply chains
C.K. Govil, Chairman and Managing Director, Activair Airfreight India
The industry, like every sector, has already adopted AI although at varying levels. We must now ask how confident we are in our AI capabilities. The industry started deploying AI in warehouse operations, capacity optimisation, cargo routing, and dynamic pricing among others. An increasing number of organisations in the industry are deploying it in planning and execution also. It has become indispensable for improving efficiency across the supply chain. Firstly, it can automate routine tasks so our workforce can focus on things that matter, and secondly, it can remove the chances of human errors. I believe its presence will push us to become more competent. They are getting ready as we speak.”
Industry must recognise power of AI or lag behind
Glyn Hughes, Director General, TIACA
AI can respond to operational disruptions, monitor shipment conditions and then take corrective measures to ensure shipment integrity is not compromised. AI can extract maximum value in terms of asset optimisation and customer interaction. Exciting times lie ahead for most creative thinkers and programme executioners. We have many inspirational and creative thinkers who will power through with new ideas and this will need to be supported by technology champions who can take these new ideas and blend them with the new technology possibilities to create something unique. If we fail to embrace what AI offers us, then we risk losing ground and not realise the efficiencies and improvements.”
Boosting productivity by investing in AI
Sunil Kohli, Managing Director, Rahat Cargo
AI is used for predictive analytics, capacity planning, and demand forecasting. The industry is inclined to adopt this latest technology to manage cargo loads and forecast predict maintenance requirements. However, the process is slow yet steady and may gather momentum soon. The journey ahead for achieving a fully integrated, globally air cargo by using the AI, will deliver desired results. The industry must go a long way in imparting AI’s essential to achieve optimal positive outcome. The data gathered through AI can identify how to perform better with sustainability in line with one’s business model.”
AI to manage capacity, improve decision-making
Matt Petot, Chief Executive Officer, CargoAi
We do think that, overall, the global air cargo industry is recognising AI’s potential to enhance operational efficiency. Leading companies are testing AI to optimise routing, pricing, and capacity management, while the lagging companies are waiting for concrete and proven biz to adopt. The industry is stepping towards a broader view driven by the need for efficiency, cost savings, and improved customer service. It will enhance operational efficiency by optimising routes, forecasting demand, and managing capacity, cutting costs and improving LSD. Like with any new technology, we do see the skill difference between generations in air cargo, especially AI.”
Successful in handling, last-mile delivery
Rahim Bhimani, Sr. Vice President, Air Cargo Practice, Kale Logistics Solutions
This is the era of AI, transforming every industry, including global air cargo industry. AI is successful in cargo handling, first-mile and last-mile delivery, route and traffic management, and documentation. The next few decades will see AI influences air logistics, fostering a proactive approach to business challenges through data-backed insights. Increased digitalisation has led to rapid data growth. AI will not replace people but will free them to focus on future innovations. Challenges such as data security and ethical considerations require attention, but the benefits outweigh the hurdles.”
An essential part of customised skilling
Balasubramanian, Founder & CEO, Air Cargo Consultancy International Services
It would be too generic to conclude either way—yes or no. It is making its value known in pockets. The champions of such initiatives need to publicise the value they got out of AI initiatives. Auto filling much of the documentation is one thing that comes to mind. It could be dynamic pricing models on the one hand to safety/security on the other. So, the diverse application possibilities make it ‘essential’ part of cargo growth. AI can be compared with ‘automation’ as a concept introduced into every walk of life a few decades ago. One needs to be careful that AI is not considered as flavour of the month or year.”
