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IATA prediction 2019, air cargo will account for more than 13% of airlines revenue with air-freight volume increasing by 3% a year on average until 2030, according to McKinsey and Company analysis. Recent increases in air cargo revenue and tonnage have come as a result of e-commerce technology and digitization of industry with digital-savy startups.

McKinsey & Company’s partner predicted that the e-commerce market totaling 5 billion shipments a year and will grow to 20% by 2022, but the industry should be thinking ahead when the e-commerce market matures and annual growth rates come to end. At the beginning of 2019, the electronic air waybill (e-AWB) became the default contract of carriage for all air cargo shipments and the digitizing of the air supply chain is the heart of manual and paper-based processes. Stakeholders need to have access to accurate information in real-time and must be able to communicate electronically.

The Ultimate aim of air cargo digitization is to approach air cargo service more intelligently, cost-effectively, environmentally friendly, and with less room for human error. McKinsey & Company estimates that digitized sales and customer service will become the industry benchmark and set customer expectations, with modern shipper service, competitive price, and easy access to all shipment information will increase the market.

As air cargo continues to transform quicker than before, the industry will look at the technology to automate processes to raise levels of data quality and information facility. With speed and reliability as air cargo’s main strengths. The industry will continue to be the preferred solution for transporting sensitive time and goods. The main problem with smart technologies in cargo is having too many participants in the supply chain. This is the main challenge but with smart new technologies in the industry, the combination of unprecedented circumstances, urgent need, and the cooperation of all in the supply chain will reinforce the accelerating digital processes in cargo.

By: Rizka Rahayu