To be well succeeded in air cargo requires a good combination of agility, efficient capacity management, and global reach. Common challenges in air cargo include network disruptions, rapidly changing legislation, capacity constraints during peak periods, fluctuating fuel prices, among so many others that put the market into pressure with a strong dynamic.
Components that are central to having a successful strategy amid this backdrop include customer centricity to understand and align with customers’ supply chain needs, modern technology and strong partnerships with airports, ground handlers, freight forwarders, transportation companies and other airlines. Flexibility to shift between different transportation modes and rapid scalability in response to demand fluctuations are critical in today’s fast-changing global market.
“We mitigate risks by diversifying our routes and building a strong network of global hubs. Having multiple options for freight routing ensures that we can adapt quickly to geopolitical disruptions, such as airspace closures or political instability,” Bruno Aires, TAP Air Cargo’s Global Cargo Senior Director, stated.”
To overcome these, it’s key to build partnerships with both other carriers and local ground handling providers, giving us flexibility to redirect shipments when needed. Additionally, we employ risk management strategies like capacity planning and multi-modal transportation options to reduce dependency on single routes or airports.”
Efficient operations
Balancing cost efficiency with service quality involves optimising schedules and network, along with using fuel-efficient aircrafts and ensuring competitive rates with partners.
At the same time, it’s critical to prioritise service quality by offering faster transit times, track and trace capabilities, and specialised handling for sensitive or high-value cargo. This ensures cargo companies can meet customer expectations without compromising on operational efficiency.
“Technology plays a vital role in improving transparency, efficiency, and reliability across the air cargo logistics chain. Tools like online booking platforms, real-time tracking, automated measurement systems, and cargo build-up simulators streamline operations,” Bruno Aires explained.
“With a growing adoption in the market, artificial intelligence and machine learning are becoming a fundamental tool to help optimising flight schedules and route planning, while blockchain is getting useful to provide secure and transparent documentation for shipments, ensuring accuracy and preventing fraud.
“IoT sensors are becoming more and more common to monitor temperature, humidity, and other conditions critical for sensitive cargo, ensuring compliance and quality.”
Green vision
The shift towards more sustainable logistics solutions is also a major trend, and operators are adapting by enhancing fuel efficiency, adopting greener processes, and offering carbon emissions data and carbon-offset capabilities to customers.
“Sustainability is integrated through the use of fuel-efficient aircraft, optimising flight routes to minimise emissions, and providing our customers carbon footprint calculation and carbon offset capabilities,” Bruno Aires declared.
“We are also targeting to partner with eco-friendly service providers. The benefits include reduced operational costs, improved brand reputation, and the ability to meet growing customer demands for sustainable logistics solutions. Additionally, it helps us comply with international environmental regulations and future-proof our business.”
Enhanced practices
Key trends include the increasing use of automation and digitalization. Cargo carriers have been invested in automation technologies for cargo handling, adopting AI to optimise operation, and implementing digital transformation projects to increase efficiency and reduce manual errors in our processes.
“Data analytics helps us optimise flight planning, cargo routing, and capacity management. By analysing historical shipment data and current market trends, we forecast demand more accurately and make proactive adjustments, such as rerouting cargo to avoid delays,” Bruno Aires outlined.
“AI will continue to revolutionise air cargo by enhancing predictive data related with demand forecasting and route optimization, leading to faster, more reliable operations. Blockchain will improve transparency and security in international shipping by providing a tamper-proof digital ledger for transactions, reducing the risk of fraud and increasing trust across the supply chain. These technologies will enable real-time decision-making, improve the efficiency of cross-border shipments, and ensure more seamless integration between various stakeholders in the supply chain.”
