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Ever-evolving tech solutions


IATA addresses part of that question, calling for, among other things: “interactive dialogue to transmit information like predictive and effective volumes,” as well as bookings and allocations that can “help optimize capacity, load factors, routes, physical flows, and environmental footprint.” To that, airlines point to their


ever-evolving tech solutions. “We are continuing to look


at innovative products and services, as well as technology to make Delta easy to do business with,” says Delta Cargo’s Vice President Shawn Cole. E-commerce is Delta’s fastest-growing vertical business both


domestically


and globally. As a result, last year Delta


became the first US passenger airline to roll out


real-time


Bluetooth tracking for unit load devices (ULDs) to provide greater transparency. Real-time ULD


tracking


information also allows Delta’s cargo control center to more accurately monitor and reroute shipments that are delayed due to irregular operations, like inclement weather. Since May 2018, 70% of


the fleet has been outfitted with these devices, with work continuing into June. Readers have been installed at more


United Cargo QuickPak gets the job done. (United Cargo photo.)


service called Next Flight Guaranteed. They also benefit from its back-office and point of sale system called Southwest Cargo


Suite that allows


customers to book shipments and utilize e-air waybills. Besides operating the world’s


largest fleet of Boeing aircraſt on more than 4,000 weekday departures to and from 99 destinations in the US and 10 countries, Deveraux notes that the airline particularly prides itself on its employees. “Our business runs on


both in infrastructure and new applications.” Addressing


the infrastructure equation,


Luſthansa Cargo announced in March plans to invest some €400 million in its Frankfurt- based Luſthansa Cargo Center, with completion expected in 2024. The facility will be designed and built in a modular configuration that will allow it to ramp up as cargo needs demand. This “modular” concept


was also mentioned in a report released in March by IATA that calls, among other steps, for carriers to “evaluate and consider re-purposing excess capacity of the cargo warehouses into modular e-commerce logistics centers and distribution facilities.” IATA Director General and CEO Alexandre


du Juniac


Southwest Airlines cold weather operations in Salt Lake City, Utah. (Photo by Stephen M. Keller, courtesy Southwest Airlines Cargo.)


noted in the March report: “The problem is not technology. The problem is speed to market.” Wrote du Juniac, “The


e-commerce world is looking for fully automated high-rack


Issue 3 2019 - FBJNA


a mong s h i p p e r s ,


forwarders and carriers.” The fundamental question


then becomes, says Krems, how to combine what airlines currently do best with new creative uses of technology and process enhancements to generate effective, and cost-competitive, transport solutions for e-commerce.


than 115 locations on six continents. Digitization is another


focus, he says, that involves an improved website. Since introducing the website, Delta has seen a 20% increase in


global online bookings


compared to 2017. “The website is now Delta


Cargo’s No. 1 global booking channel compared with other Delta booking channels,” Cole says. Likewise,


Southwest


Airlines Cargo, which began its international shipping program in July 2018, offers a customer-friendly website for


cargo tracking. Wally


Devereaux, managing director of Cargo and Charters, notes that e-commerce customers already widely use the carrier’s guaranteed


flight-specific


Modular e-commerce logistics


Still, technology is a must if air carriers are to be involved


“The website is now Delta Cargo’s No. 1 global booking channel compared with other Delta booking channels.” -- Shawn Cole, Delta Cargo.


in e-commerce. Case in point, Luſthansa Cargo offers Airmail and Express products for e-commerce solutions, and a spokesperson adds, “We will also invest massively in our IT,


warehouses, with autonomous green


vehicles navigating


through the facility, and employees equipped with artificial intelligence and augmented reality tools. The average cargo warehouse today is an impressive sight. But there is a huge gap to fill.”


The Amazon equation


Look no further, of course, than Amazon, the mac daddy of e-commerce disruption. In early 2017, the giant


announced plans to build a $1.5 billion air hub at Cincinnati/Northern Kentucky International Airport with completion expected in late 2021. Amazon also operates Prime Air with 29 B767 aircraſt and an additional B737 aircraſt on order. Is Amazon’s launch into the


air-cargo space a threat? “As Amazon increases the


scope of that system, it could, in fact, take some cargo off the airlines,” AfA’s Fried says. “But we have to make sure we understand that while Amazon is large – and they are a primary


the foundation of delivering exceptional


service through our personal relationships,”


he says. customer A


customer recently told him, “Technology does not become an excuse to say no.”


///AIR CARGO


Easy opens digital platform to others


Express Air Systems (easy) makes booking express airfreight easier than ever. Via a new digital portal, offers for express freight can be obtained from 25 currently affiliated airlines and compared with each other as well as booked directly via the easy portal. Customers receive a simple


and transparent overview of the possible airlines with available flight times, product details and associated rates for different volumes. easy also offers quick and efficient solutions for individual airfreight shipments, for example high tonnages, extremely short delivery times, dangerous goods, etc. Thanks to the market


strength of the two shareholders involved in easy (DB Schenker and Kühne & Nagel), customers benefit from attractive conditions. Here’s how the


new easy platform works: An individual request made via the portal is standardized and automatically passed on to the eligible airlines. Airlines, which can and want to provide a quote, make their offer available in an also standardized way. The customer receives an overview of all the offers, can compare the details (prices, routing, etc.) and book them online at day rates. A simplification that also greatly benefits airlines.


“E-commerce is becoming such a megatrend; it’s producing more volume for airlines.” -- Brandon Fried, AfA.


but entail more pieces,” Luſthansa says, echoing the IATA White Paper that says 84% of shipments are below 2 kg, or approximately 4.4 pounds, while 40% cost


less


than €25. “To that,” Krems says,


“we need to quickly and more effectively adapt the current business model and supply chain strategies we employ for heavier freight to accommodate e-commerce shippers and their customers.” At the same time, he notes a


continued increase in United Cargo’s shipment volumes in freight and mail services.


“Our business runs on the


foundation of delivering exceptional customer service through our personal relationships.”


-- Wally Devereaux, Southwest Airlines Cargo.


player, they’re not the only one. This e-commerce megatrend is being driven by many retailers many of whom don’t have any relation to Amazon.” Cargo is shiſting as well to


lower cost freight and lighter weights. “Already today we observe,


shipments are gradually becoming smaller in weight


Luſthansa is also seeing


e-commerce growth in the cross-border segment, which IPC expects


in the coming


years to account for 22% of global online commerce or, as the IATA white paper notes, “nearly twice the growth rate for domestic trade.” “Certainly, this will be to the benefit of the airfreight


sector, and will impact


all


aspects of airfreight, whether it is handling, tracking or sales,” Luſthansa says. At the end of the day, says


Fried, “Freight forwarders are most concerned about flight schedules, redundancies, frequencies and space on those planes.” Stefano Baronci, ACI World’s


Director of Economics and Programme Development at Airports Council International, sums the situation up with a comment about rising e-commerce demand:


“The


core issue for our industry remains how we respond to this demand at a local, national, and international level as physical capacity considerations and potential bottlenecks in air transport infrastructure pose challenges in accommodating future air transport demand.”


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