ACAAI, in its upcoming 47th Convention in Kuala Lumpur, will highlight the power of AI as a game changer. C K Govil, VP, ACAAI, and MD, Activair Airfreight India says the association will discuss issues such as GST exemption on air freight, technology in customs, and EoDB in clearance of EXIM air cargo.
Ritika Arora Bhola
How do you justify ACAAI’s 47th convention theme—AI the Game Changer: Embracing the Intelligent Future?
Artificial Intelligence (AI) has entered all domains. Many industries use it to manage their workforce, create a customer support script, improve sustainability and eco-friendliness, manage inventory, and optimize operations. But the air cargo industry is yet to witness the full power of the AI revolution. Although, a few startups have emerged in the industry that are utilizing AI to provide better services. Its application in our industry is multifold, but has yet to be witnessed. ACAAI salutes the power of AI and intends to open the gates of air cargo in India to AI.
How crucial is tech in boosting air cargo’s operational efficiency and performance? Throw light on advanced tech being adopted by the fraternity?
Network planning and route optimization, predicting fleet maintenance and reducing breakdowns, efficient space utilisation on aircraft, curbing operational costs, enforcing SLAs on the ground, improving the safety of warehouse staff, enhancing customer support, and giving real-time insights are just some of its applications. AI-enabled solutions can refine data and simplify sharing, thus boosting optimal resource utilization and making decision-making transparent. Another example is AI, combined with telematics, can improve ULD tracking too. The traditional code-based identification and tracking system was never too efficient—performance or cost-wise. With AI, the system can better allocate ULDs based on their status updates. Also, AI is not new to the industry. Aviation has been using Machine Learning for years to create applications for complex problem-solving, airport security, and data sharing. It has played a critical role in forecasting. AAICLAS is also getting ready to adopt Blockchain technology for data management.
Do you think cargo industry stakeholders are ready to embrace technology fully? Are there any impediments?
The stakeholders have been using technology for decades now. They are connected with each other using the technology of Electronic Data Interchange, introduced in the 90s. Indian airports under the then International Airports Authority of India took the lead and provided an IT platform to customs and agents to exchange data for use by each player thus providing momentum to cargo clearance procedures. All stakeholders willingly accepted and adopted it. Our industry has shown enthusiasm to adopt newer technologies to facilitate the EXIM trade and push India to the top level of EoDB.
Above all, we have seen the resilience and adaptive skills of the Indian air cargo industry during COVID. If other industries can do it, we can too. Anyhow, we have been talking about digitalisation for a while now. AI is the next step. And, while we use AI in one way or the other in our daily lives, our collective need to improve operational performance and cost-efficiency in the sector will serve the desired push towards the AI revolution in the industry.
Do we have the right skillset to use and understand new technology, especially during ground handling and transportation?
AI is a technology that powers machines with human intelligence. Of course, we must embrace this new phenomenon. We have the talent and the skillset to adapt AI on a wide-scale throughout the industry in every domain can benefit from it. The seniors of the industry are using the new technologies, and the new generation joining the industry in various domain, including ground handling and transportation, are more adept at using it.
What are the crucial pain points of Indian freight forwarders now?
A vital pain point is the frequent breakdown of the Customs IT system, surprisingly, on weekends and holidays, which delays Customs clearance of EXIM cargo. Export shipments miss the flight connections. Import cargo does not reach factories on time. Besides, the trade must pay heavy demurrage charges to the custodians for no fault of theirs. The result: the custodians, Cargo Terminal Operators (CTOs), and the airlines, face technological failures in their respective domains, but the brunt has to be borne by their customers. No SLAs are defined to provide relief to customers. On the non-technical front, the freight forwarders and shippers suffered a major setback when the government discontinued the sunset clause of GST beyond 30 September 2022, despite the industry’s multiple requests. It resulted in a levy of 18 per cent GST on air freight against 5 per cent on sea freight. This increased operational costs and posed competitive problems for Indian shippers.
As VP, what are your plans, ambitions and set targets for ACAAI?
ACAAI will continue to raise the pain points at the right forums, armed with logic, and data, and extend its support to them in their resolution. We believe in constructive talks. ACAAI will do everything to take Indian EXIM trade to a higher level. Supporting the government’s novel and trade-friendly initiatives will be ACAAI’s top priority.
Tell us about your ongoing projects, which you are taking up with the government?
Exemption of GST on air freight, a rugged IT system of customs, SLAs for service providers to customers, and EoDB in clearance of EXIM air cargo are some of the issues we are taking up with the government.
What is ACAAI’s target for this year and beyond?
Welcoming and supporting innovative technology such as AI in the entire supply chain will enable the central government to achieve its target of 10 million tonnes of cargo by 2030.
What will be special about this year’s convention in Kuala Lumpur, Malaysia?
We will apprise all our members of the concept of AI and its usage in their daily operational activities to boost their business, that of their customers, and our country.
