ABU DHABI \u2014 There has been talk in recent years about the wave of digital disruption coming to air cargo.
\nWell, that wave appears to have arrived.
\nAir France-KLM Martinair Cargo, as an example, is on its way to true digital transformation, said Laurent Petitmangin, the carrier\u2019s Vice President Marketing, Digital & Communication. Petitmangin said Air France-KLM Cargo has undertaken a project to improve its data quality \u2013 an important step toward incorporating more data analytics into its operations.
\n\u201cWe decided to lead the change,\u201d Petitmangin told the packed Digital Transformation track at IATA\u2019s WCS 2017 today, in order to be \u201ccloser to the customers.\u201d
\nOther carriers are following suit. While major carriers are brainstorming ways to get ahead of the digital disruption, a key question remains: Is air cargo moving fast enough?
\nAccording to WCS panelists, stakeholders need to pick up the pace.
\n\u201cDisruption is coming,\u201d said Celine Hourcade, head of cargo transformation at IATA.
\nHourcade noted that Amazon\u2019s entrance into air cargo sector was not even regarded as a threat until 12 months ago. \u201cThere will be other entrants,\u201d she said, adding that the industry needed to simplify in response.
\nMercator announced the launch of their Intelligent Cargo Ecosystem, the industry\u2019s \u201cfirst open API platform for air cargo management and ground handling.\u201d
\nThe app enables air cargo carriers to connect goods, people, data, and processes to transform their warehousing operations, driving intelligence, predictability, and value. Finnair Cargo has already deployed the app as part of its digital ground handling strategy.
\nEquipment providers also see the shift, which Dronamics co-founder Svilen Rangelov blamed on consumer expectations.
\n\u201cThe internet has spoiled us,\u201d he said. \u201cNow, we need to be on demand.\u201d
\nRangelov\u2019s vision of air freight\u2019s future is \u201cagile,\u201d with exponentially more and smaller aircraft in service, and those aircraft using smaller airfields.
\nThere\u2019s another disruption taking place, which Rangelov called \u201cmobile warehouses.\u201d In addition to more abstract patents filed by the likes of Amazon, Rangelov argued that tests by UPS where drones perform last-mile deliveries from UPS trucks represent new, smaller warehouse models.
\nStill, will digitization efforts by Air France-KLM and other legacy carriers be successful?
\nThat debate centers around whether carriers and other industry players can innovate past the disruption, or whether they will succumb to it. IATA\u2019s Hourcade noted that for every Silicon Valley disruptor, there were many more that failed to make the cut. She noted that it was IATA\u2019s role to develop standards that help the industry adapt. The organization\u2019s other role, she said, was to provide an overview, \u201cto foster innovation and to the research.\u201d
\nChamp Cargosystems\u2019 Wojciech Soltysiak noted that the market\u2019s segmentation works against establishing unified standards, but that they remain important. Small- and medium-sized forwarders and shippers have different ways of operating, he said. Citing Brussels Airport as an example, he noted that efforts to unify players happen well at the local community level, where local needs spur unification.
\nOne solution for extensive redundancies and complex communication is blockchain, the technology behind bitcoin that many in the air cargo industry hope will securely track all types of transactions across the supply chain.
\nThe way blockchain works is, every time a shipment changes hands, a blockchain records the transaction, creating a permanent, immutable history that would be visible to everyone. This reduces the time delays, costs, and human error that make air cargo such a complex process. Blockchain would allow the receiver of a shipment to track its entire trajectory, accounting for factors such as temperature deviation and rough treatment.
\nHourcade said IATA now sees benefits in blockchain.
\n\u201cWe can see that it\u2019s not a buzzword anymore,\u201d she said.
\nHowever, she acknowledged that blockchain is, on the tech level, quite complicated. She stressed that users don\u2019t need to understand it. Not true for IATA.
\n\u201cI need to understand that it will be an enabler\u201d for smart contracts and improving interactions, she said.
\nThat need is a sign that digital disruption is here.
\nSource: aircargoworld<\/p>\n","protected":false},"excerpt":{"rendered":"
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