AIR CARG O WEEK
CARGO TECHNOLOGY
IOT-BASED TRACKING IN AIRFREIGHT CARGO HANDLING: STATE OF PLAY IN 2025
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“This is why the airfreight industry has increasingly turned to IoT technologies to address inefficiencies, reduce losses and improve transparency.”
racking in airfreight cargo handling utilising the Internet of Things (IoT)
is rapidly reshaping logistics, offering
greater visibility, security and control. Industry leaders like Lufthansa, Delta and Emirates are setting the pace, using smart ULDs, real-time data platforms, and
condition monitoring to deliver on high-value promises, especially in sensitive cargo verticals. While challenges remain around cost, standardisation and
infrastructure, the trajectory is clear: IoT will become a foundational layer in next-generation air cargo operations, driving efficiency, compliance and customer satisfaction. As ecosystems mature and 5G and AI come online, the transformation will accelerate - bringing the vision of fully transparent, self-monitoring cargo supply chains within reach. This is why the airfreight industry has increasingly turned to IoT
technologies to address inefficiencies, reduce losses and improve transparency. IoT-based tracking in air cargo involves the use of sensors, wireless communication and real-time data analytics to monitor
As well as tracking the movement of shipments in real-time across
airports, warehouses, and transit routes, IoT ensures environmental conditions remain within acceptable ranges for sensitive cargo such as vaccines and perishables.
It can detect unauthorised
access to ULDs (Unit Load Devices) or containers. It can monitor availability and movement of ground handling equipment like dollies and containers. The use of
Equipment) for preventive maintenance is growing.
State of adoption: trends and gaps Major airports, such as Frankfurt, Heathrow and Changi, have deployed IoT infrastructure to streamline cargo operations. Many large airlines have integrated IoT trackers into their premium cargo services. For example, cold-chain cargo is increasingly monitored via smart containers with embedded IoT sensors. However, adoption varies greatly. Regional airports and smaller
carriers may still rely on legacy systems or basic barcode scanning without
real-time visibility. the location, condition and security of shipments
throughout the supply chain. As of 2025, IoT adoption in airfreight is growing rapidly, but
unevenly. Larger logistics firms and airlines are leading the charge, while smaller operators still face challenges related to infrastructure, cost and standardisation. The rise of e-commerce, growing
demand for temperature-sensitive cargo like
pharmaceuticals and the need for compliance with regulations, such as IATA’s CEIV Pharma, are accelerating investment in IoT- enabled solutions.
Core components of IoT There are four core components supporting IoT in airfreight: sensor devices; connectivity; connectivity; and,
integration with legacy
systems. Devices attached to cargo containers, pallets, or individual packages monitor
variables like location (GPS), temperature,
humidity, shock, tilt and light exposure for tamper detection. At the same time, Bluetooth Low Energy (BLE), LTE-M, NB-IoT,
and satellite communications transmit real-time data from cargo units to cloud platforms or on-premise control centres. Such data collected from IoT devices is processed using AI/ML tools for predictive maintenance, exception reporting and performance optimisation. In support of airfreight supply chain operations, modern IoT
systems interface with airlines’ cargo management systems (CMS), warehouse management systems (WMS) and customs platforms to ensure end-to-end visibility.
Current use and benefits As IoT has developed into the modern era, five key uses have been identified for its use in the industry. these are: real-time location tracking; condition monitoring; security and tamper detection; asset utilisation; and, predictive maintenance.
10 Interoperability between tracking
systems and international partners remains a major hurdle. IoT enables ground handlers to locate and assign cargo faster,
reducing dwell time and improving SLAs. BLE beacons are used in high-throughput facilities to track pallet movements and optimise storage allocation. Yet, implementation often requires significant infrastructure investment - BLE gateways, cloud integration, trained staff - which slows down full adoption. Organisations such as IATA and ICAO are encouraging digitisation
via standards like e-Freight and CEIV Pharma. Regulatory pressure, especially in the pharmaceutical sector, is driving greater demand for validated, IoT-enabled tracking to ensure chain of custody and condition compliance.
Challenges to wider implementation Naturally, adoption of IoT in air cargo faces several critical barriers. High upfront costs for hardware, software, and training remain a major deterrent, especially for smaller operators. Battery life limitations in IoT tags constrain long-haul and transcontinental operations. Additionally, many struggle with data overload, lacking the tools to extract actionable insights from vast data streams. The absence of global standards for device interoperability hinders seamless integration. Furthermore, unresolved questions around data ownership and privacy - whether it belongs to airlines, forwarders or end customers - complicate trust and limit broader industry adoption.
Real-world examples Lufthansa Cargo & “Cargo iQ” Lufthansa Cargo, a leader in digital innovation, uses IoT tracking through partnerships with companies like Sensitech and OnAsset Intelligence. Its premium product line includes services where customers can opt for real-time tracking of temperature, humidity, and location. Lufthansa is also a key participant in Cargo iQ, an
IoT data from GSE (Ground Support
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