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DAILY NEWS


REWRITING THE RULES OF CAPACITY PLANNING


T


he introduction of electronic block space agreements (eBSAs) has marked a seismic shift in how both airlines and freight forwarders manage cargo capacity and mitigate risk. “Both airlines and freight forwarders over the years have experienced the negatives of not having a standardised BSA structure,” said Airblox


The key here is the platform’s flexibility around pricing indices and settlement


models.“Airlines and freight forwarders can use Airblox’s settlement construct to easily use any pricing index of their choice for transparency,” he continued. This capability allows users to select benchmarks that align with


their market outlook or financial strategy, adding an entirely new layer of sophistication to pricing and planning. With the core infrastructure in place,


the groundwork is laid for a shift in how the industry approaches capacity procurement.


Instead of reactive,


tactical bookings, stakeholders will be empowered to make strategic bets on future rates—locking in costs or hedging against potential spikes. “The financial predictability this


enables could be a game-changer for cash flow management, particularly for SMEs,” Pektas stated. It also signals a broader evolution of


air cargo into a more mature, finance- integrated sector. As supply chains grow more


global


founder Edip Pektas. “Old-style BSAs are inflexible and extremely punitive when macro and microeconomic conditions introduce volatility to markets.” eBSAs


are designed to provide a much-needed alternative—bringing


standardisation, flexibility, and speed to an industry historically bogged down by rigid, manual systems. “eBSAs are flexible, standardised and can be structured to accommodate quick


risk management strategies,” Pektas explained. “This helps revenue managers to quickly react to price and capacity changes without having to make major structural adjustments to their core revenue and capacity strategy—saving cost and headache.” This ability to dynamically manage cargo capacity through a digital interface is


transformative for air cargo stakeholders trying to navigate unpredictable market swings. Whether due to geopolitical shifts, pandemics or e-commerce surges, volatility is the new norm—and Airblox is offering tools built to cope with exactly that. “We’ve created an instrument that gives freight forwarders control, agility and foresight, which is a huge leap from where the industry was,” he noted.


Transparency and planning A cornerstone of the vision is the development of an air cargo futures market—a mechanism that promises to bring the same level of transparency and predictability to air cargo as is common in commodities and energy markets. “In order for a proper futures contract to function and gain momentum, a


settlement and matching structure is necessary,” Pektas explained. “We have created the necessary infrastructure to be able to clear eBSAs post-settlement of a futures contract.”


and interdependent, the ability to hedge against freight volatility


becomes as crucial as insuring against weather or fuel costs. “This is the foundation for a smarter, more financially agile airfreight market,” Pektas outlined.


Flexibility and predictive tools For small and medium-sized freight forwarders, access to capacity has always been a challenge—not due to lack of demand, but because of structural barriers like financing and visibility. “This has been one of the major value-adds to our users,” Pektas stated.


“SME forwarders are not only able to function effectively by not worrying about free financing, but are also able to reach and quote additional markets outside of their business origin.” The platform provides up to 60 days of payment flexibility, removing the


upfront capital strain that often limits smaller players. “Fintech for us is giving the ultimate flexibility to not only use your payment


method of choice but also to have the option to work with us on 15-, 30-, 45- and 60-day credit terms,” he explained. Airblox’s tools further level the playing field. By using AI-driven models to


forecast cargo pricing on major lanes, the platform gives users access to decision-making data that would otherwise require dedicated analysts. “The inherent nature of eBSAs makes it much easier to predict pricing,”


says Pektas. “It has made it much more convenient for shippers—especially e-commerce shippers—to be more competitive.” Hinting at future innovations already in the pipeline, Pektas concluded: “AI,


of course, makes it a lot easier to produce much faster results, and we will be releasing a series of tools to make pricing easily accessible via their phones.”


www.aircargoweek.com


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