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Air cargo only scratching the service of AI, say tech chiefs

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On a scale of one to ten, the air cargo industry is currently at just three when it comes to adopting AI-assisted decision-making, said Cédric Millet, president of industry tech firm CargoTech.

He says that AI (artificial intelligence) is only sporadically used in different segments of the industry – mostly in customer service and engagement functions, because these have the greatest similarity to processes in other, more digitally-developed industries. Much of the sector is still in the process of digitizing its operations and starting to accumulate data volumes. “To embark on the journey of AI-assisted decision-making, it is crucial to extract a large volume of data to train the models and to identify anomalies for better decision-making, going forward,” Millet explains.

Data is currently heavily fragmented across stakeholders, leading to huge inefficiency. However, AI could synthesize data across the supply chain, promoting better end-to-end visibility and decision-making.

In fact, argues Michael Teoh, head of strategy at CargoTech, the air cargo industry faces the challenge of an abundance of data. “For a long period, the air cargo industry suffered from data scarcity, when it came to advanced data analysis. As data availability increased, Business Intelligence (BI) dashboards proliferated, sparking enthusiasm about the possibilities of applying Artificial Intelligence (AI) to revolutionize air cargo operations. However, there’s often a misconception that AI, in itself, will be able to solve some of the industry’s biggest challenges.

“Experience has shown that AI does not replace the need for commercial teams to devise innovative use cases that drive value through better decision-making. AI should be viewed as an enabler rather than an end goal.”

The cargo charter niche faces the greatest challenge when it comes to data availability and quality: Currently, crucial data is held within emails, messages, and analogue channels. These analogue formats first have to be digitized before introducing AI-enabled tools.

AI will benefit carriers operating cargo charters in long-term planning. Airlines operating both scheduled flights and charters want to know how much of their fleet they should make available for charter, what the peak charter lanes could be, and then weigh up of selling charter capacity compared to keeping the aircraft on a scheduled programme. With the right amount of market data including common routings, commodity types and market verticals, AI can help find the optimum balance, offering aggregated market intelligence that supports longer term planning.

Carriers also want to make informed decisions on which aircraft and routing within their network would be the best fit to maximize on available capacity. By combining historical internal data and request data within a machine learning model that learns past behaviours and patterns, AI could provide relevant information for charter salespeople on which to base their quotation decision.

AI not only offers commercial decision-making benefits, but also opens up development opportunities. “There is often the misconception that AI leads to a reduction in employees,” states Cédric Millet. “At CargoTech, we believe that roles will not be replaced, but specific tasks within them may change.”

For example, sales staff will be relieved from having to spend time analysing data and trends to finding new customers.  AI can identify sales leads and enable the salesperson to spend more time with each customer. “AI will reshape roles to meet evolving needs, thus ensuring sustainability and empowering employees as they focus on strategic work and are encouraged to upskill with new tools,” he predicts. Through the automation of repetitive tasks, AI helps streamline processes, reduce errors, and enhance efficiency.

Also: “Cutting-edge technology attracts younger generations to the industry,” he summarizes – an important point in an industry that has long struggled to fill open positions.

First e-commerce flight touches down in Prestwick

Glasgow Prestwick Airport has handled its first full e-commerce cargo flight. Chartered by Zhonger Express and Jumen Logistics, it was operated by Silk Way West Airlines Cargo and carried a 90-tonne consignment for Royal Mail.

Products from two of the four major e-commerce platforms, Temu and TikTok, were on board and representatives were on-site to observe the handling process at Prestwick.

It follows Prestwick’s partnership with Royal Mail to become its UK international e-commerce hub  and appointment of a dedicated sales representative in China.

The airport’s business development director, Nico Le Roux, said: “This flight was an opportunity for us to showcase Prestwick’s efficient and reliable solution for e-commerce imports to the UK. Our expert handling teams offloaded the cargo, broke it down, and swiftly segregated it by area region, before loading onto trucks for onward delivery.”

Earlier this year, Prestwick invested over £2 million in new cargo equipment, including two high loaders and 12 new dollies.  

Prestwick’s Business Development team is now working towards regular e-commerce flights in the new year and is working with Scottish exporters to ship whisky and salmon to the Far East on the return leg of e-commerce flights.

Bigger and better for American at London Heathrow

American Airlines Cargo has moved to a larger facility and digital capabilities at London Heathrow Airport (LHR), its largest operation in Europe.

The new site is next to its two former buildings and combines import and export operations into one larger footprint, giving greater flexibility for both the carrier and its cargo handler, Worldwide Flight Services (WFS). 

The new building offers a total of 120,000sq ft, 15,000sq ft more than the original combined facilities and nearly doublings the capacity for storage of PMC pallets. Landside and airside doors, X-Ray machines and build stations are also increased.

American has also introduced a digital connection between the WFS system, CargoSpot, and its iCargo platform. 

American currently operates 20 widebody flights a day out of LHR to key hubs in the US, and up to 26 per day during the summer peak season.

Vice president of operations for American Airlines Cargo, Sam Mendenhall, said: “The facility expansion is a significant milestone for us in how we operate in LHR. We are confident that the move to a larger, more uniform cargo facility, coupled with the technology enhancements with WFS, will unlock operational efficiencies and ultimately provide a better experience for our customers who ship in and out of LHR.”

Rising to the Challenge

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Challenge has added a further Boeing 747-400 freighter to its fleet. The Belgian based carrier now  operates ten aircraft, including six Boeing 747-400F and four Boeing 767-300F freighters, and has trebled its fleet in less than three years. The new aircraft will help meet rising demand for perishable transportation out of Africa, e-commerce shipments from China, and transatlantic trade.

Carriers make cautious return to Libya

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Turkish Airlines is returning to Benghazi in Libya after suspending flights for over a decade.

It plans to introduce three times a week Boeing 737-800 and 737-900 flights between Istanbul Airport and Benina International Airport from 14 January. The carrier suspended operations to Libya in November 2014 from the start of the unrest that led to the downfall of General Gadhafi.

Turkish Airlines has already resumed five times a week flights to the Libyan capital Tripoli in April 2024.

Other carriers that have introduced or reintroduced flights to Libya include Afriqiyah Airways. Berniq Airways, Libyan Airlines, Belaviaand Egyptair while Italy’s ITA Airways is planning to start services to Tripoli in January.

The European Union Aviation Safety Agency (EASA) currently warns airlines to avoid Libyan airspace due to a high risk of attacks on civil aviation but allows exceptions for flights to coastal airports under certain conditions including approaches from over the sea.

IATA launches tracker safety scheme

The International Air Transport Association (IATA) has launched an Air Cargo Device Assessment Program to validate air cargo tracking devices, data loggers and sensor-equipped devices for compliance with industry safety standards. The Assessment validates compliance with IATA’s Recommended Practice 1693, which provides critical safety guidance for electromagnetic compatibility and battery safety. Validation data will be accessible via ONE Source which provides a single access point to stakeholders searching for approved tracking devices.

It streamlines the validation process by eliminating repetitive documentation requirements, facilitates easier access to airline contacts for device authorization, and enhances visibility in the global market. Airlines benefit from safer operations with fewer undeclared devices, simplified internal approval processes, and a consolidated repository of approved devices. Shippers and forwarders also gain centralized access to approved device information, enabling better planning for routing and carrier selection.

First flights for new Dubai freighter operator

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New Dubai-based cargo carrier SolitAir has launched its first daily scheduled flights between its home country and Riyadh, Saudi Arabia.

The 737-800 freighter service, between Dubai World Central (DWC) and Riyadh’s King Khalid International Airport is carrying cargo on both legs of the journey and operates five days a week, Tuesday to Saturday. It is operated by one of two SolitAir’s narrow-body Boeing 737-800 freighters, with a capacity of 23 tonnes.

A further Boeing similar freighter will join the fleet in January next year to enable the company’s immediate expansion plans which include routes to India and Bangladesh, key markets across Africa, central Asia and other Middle Eastern hubs. Eventually, SolitAir aims to connect over 50 Global South cities within a six-hour flying radius from Dubai.

Rhenus joins carrier SAF scheme

Global forwarder Rhenus has joined the Air France KLM Martinair Cargo Investing in Sustainable Aviation Fuel (SAF) program. to help cut emissions in aviation. The scheme by the French-Dutch carrier enables companies to contribute to the use and development of SAF for their shipments, derived from renewable sources such as waste oils and agricultural residues. The investment in SAF also supporta Air France KLM Martinair Cargo’s efforts to scale its production.

Charlotte Elpers to lead KLM Cargo operations

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KLM Cargo has appointed Charlotte Elpers as vice-president worldwide operations, effective from 1 March 2025. She will the Dutch carrier’s global cargo operations, bringing nearly two decades of leadership experience within the KLM Group, most recently as vice president passenger services at Schiphol. She succeeds Koen Bolster who becomes executive vice president hub operations on 1 February.

Delta signs deal with Cargo.one

Delta Cargo has signed a long-term agreement with digital air freight procurement platform Cargo.one to expand its services and presence to more freight forwarding branches. The deal will allow Cargo.one’s  user base of more than 20,000 forwarders to discover, quote, book and track Delta Cargo capacity via the platform.

Starting in spring of 2025, Cargo.one will offer Delta Cargo capacity for general cargo bookings in select markets.