The Middle East has become a crucial player in the global air cargo industry, thanks to its location at the crossroads of trade routes between Asia, Europe, and Africa. The adoption of digitalisation helps overcome legacy systems and enhances data-sharing capabilities.
-Abigail Mathias
Inefficient paper-based processes are being replaced by digital solutions across cargo operations, from tracking to customs clearance. This transition makes international trade more efficient. The adoption of the ONE Record standard enables efficient data exchange throughout the supply chain. Airlines such as Lufthansa Cargo among others have already achieved ONE Record capability, and major airline IT platform providers are committed to supporting this transition.
Brazil has reduced cargo release times from five days to just five hours by implementing IATA’s digital standards. The EU, UAE, and Canada will adopt pre-loading advance cargo information systems by the end of 2024, enhancing data sharing across the air cargo supply chain.
The updated IATA Interactive Cargo Guidance system ensures quality and accuracy for time and temperature-sensitive goods. This is crucial for real-time shipment tracking, especially for e-commerce and pharmaceutical trade.
Digitalisation allows airlines and logistics providers to optimise route planning, cargo loading, and resource allocation. This minimises costs and reduces the environmental footprint of air cargo operations, contributing to sustainability efforts.
Companies such as Maersk use AI technology for digital air cargo booking. Maersk’s platform, called Maersk Spot, provides instant quotes and simplifies the booking process using algorithms and ML. Automated Warehouse Management Systems optimise cargo handling, inventory management, and warehouse operations to improve efficiency and accuracy.
Real-time tracking and visibility tools enable real-time monitoring of cargo shipments, enhancing transparency and allowing stakeholders to track cargo movements throughout the supply chain. By leveraging these digital tools, air cargo carriers can enhance operational efficiency, improve customer experience, and adapt to the evolving industry landscape.
Regional Facts and Figures
Dubai and Abu Dhabi airports have shown strong growth in air cargo. In 2021, Dubai International Airport handled over 2.3 million metric tonnes of cargo, reflecting a robust recovery post-pandemic (Global News Wire).
The UAE logistics market is projected to grow from USD 35.9 billion in 2023 to USD 58.5 billion by 2032, indicating expanding capabilities and increased cargo volumes (IMARC). Source: Shipa Freight
Digitisation reduces errors, improves decision-making
Jessica Panigari, Founder and Strategic Leader, Goods2Load
Digitalisation enhances efficiency and transparency in the air cargo industry. By automating processes and integrating advanced tracking systems, it reduces errors and speeds up operations. Digital platforms enable real-time data sharing among stakeholders, improving decision-making and customer service. As the Middle East is a major hub for global trade, digitalisation can streamline cross-border logistics.
At Goods2Load, we are committed to driving digital transformation in air sea and road freight by developing a user-centric platform. Our solutions facilitate seamless interactions between SMEs and logistics providers, enhancing operational efficiency, reducing costs and optimising real-time data thereby allowing logistic providers to maximise their performance.
By partnering with industry leaders and investing in cutting-edge technology, we aim to extend the reach of digitalisation across the Middle East, GCC, MENA region, South Asia and EU soon. As per IATA, digitalisation could save the air freight industry up to US$1.2 billion annually. In the Middle East, where air cargo traffic grew by 5.6 per cent in the last year, embracing digital solutions could further enhance this growth.
Technology improves shipment planning between parties
Marie Seco-Köppen, Executive Director, Cargo IQ
There would be little argument with the claim that digitalisation can achieve for the supply chain what the wheel did for the cart. As companies and globally continue to digitalise their processes and upgrade their systems, they need to decide what digitalisation they want to have for the desired impact. I believe there are many approaches for process improvement involving digitalisation. There are approaches, which substitute one system for another and approaches, to work on newer technology.
Other solutions remove mundane activities by using mobile devices, scanning equipment, and automated scales, freeing up a person to focus on more engaging tasks. At Cargo iQ, our new tiered membership scheme will focus on assessing member’s processes, system capabilities, data completeness, and its timely availability. Proactive tracking can be boosted by shifting from messaging to full shipment Mapping API (API) route map exchanges, making the whole process more reliable, faster, and more accurate. That is why we will be creating a One Record roadmap for Cargo iQ activities to improve exchanges around shipment planning between parties, reduce costs among others.
Data-driven approach boosts efficiency, streamlines processes
Svettlana Chatterjee, Director, S CUBE Trans Continental Group
The digital revolution in air cargo is akin to a jet engine for the Middle East’s logistics industry. In a world where our lives are intertwined with technology along with digital landscape, there exists a realm of connections and interdependencies powered by the supply chain industry. It propels efficiency to new heights, streamlines processes and unlocks a treasure trove of data-driven insights.
This digital transformation enables a cross-ventilation of expertise and is fated to become the foundation of logistics. A recent study shows that Middle Eastern airlines are experiencing an increase in air cargo, with a projected compound annual growth rate of 19 per cent for e-commerce alone. Our company envisions itself to be a digital cargo pioneer in the Middle East region. By harnessing cutting-edge technologies such as Blockchain and AI, we look to create a flow of information, above all to use technology as an enabler in this traditional industry.
Digitalisation integrates supply chain and reduces bottlenecks
Pongsathorn Sangasang, Project Manager, Pattaya Aviation
Advanced analytics and AI facilitate predictive maintenance, demand forecasting, and capacity planning, resulting in more informed decision-making, and optimised operations. Digital platforms integrate the supply chain, ensuring seamless communication and coordination between shippers, carriers, and consignees streamlining operations and reducing bottlenecks. In the Middle East, digitalisation can drive competitiveness and position the region as a global logistics hub.
The region’s e-commerce market, expected to grow to US$48.6 billion by 2024, underscores the crucial role of digitalisation in meeting the demand for fast and reliable air cargo services. Dubai’s dnata has hiked operational efficiency by 25 per cent through AI-powered cargo management systems. Qatar Airways Cargo has reported a 10 per cent increase in volumes due to its investment in digital platforms such as CargoCast.
Technology to unleash global supply chain potential
Hakim Ramadan, Partner & Director, Miebach Consulting, Dubai
The changing global landscape demands agility and visibility in supply chains. Businesses that fail to embrace digitalisation opertate like blindfolded runners susceptible to poor decisions. The Middle East industry is undergoing a transformative shift. Investments across airports, cargo companies, and government initiatives signal a commitment to data-driven decision making, leveraging analytics and technology to propel the region forward. The industry must be competitive, and digitization will unleash its supply chain potential.
Kingdom of Saudi Arabia’s recent PLACI mandate for all cargo streamlines security checks and accelerates clearance times. Dubai-based dnata’s cloud-based platform exemplifies the shift towards data-driven solutions. e-commerce boom fuels rise of digital freight forwarding.
Digital technology contributes to sustainability, optimises routes
Ben Lambert, Head, Air Freight Middle East & Africa, DHL Global Forwarding
Digitalisation is revolutionising air cargo. Advanced tracking systems, real-time data analytics, and digital documentation streamline processes, reduce delays, and minimise errors, making the supply chain reliable. Automation of booking, documentation, and customs clearance reduces costs, while digital platforms expedite tasks and decrease administrative burdens. Digitalisation contributes to more sustainable operations through the optimisation of routes and loads, reducing fuel consumption and Green House Gas (GHG) emissions.
DHL Global Forwarding is investing in advanced digital platforms to streamline logistics processes and enhance data analytics. Solutions such as myDHLi offer real-time shipment tracking and reduction by leveraging SAF and access to key logistics information. The integration of GenAI into myDHLi enhances the logistics experience, offering innovative solutions that drive usability, resilience, and sustainability. The Middle East and Africa region is the fastest-growing for air freight. e-commerce market is may reach US$201.57 bn by 2029, at CAGR of 5.92 per cent.
Integration of carrier systems allow agents access to available capacities
Hemang Kapur, CEO, Shipa Freight
Digitalisation is revolutionising air cargo by streamlining operations, reducing costs, and enhancing efficiency, replacing paper-based processes with digital systems, leading to faster operations, better tracking, and accurate demand forecasting. For instance, AI-driven forecasting has reduced errors from 20 to 14 per cent, improving operational accuracy and profitability (IATA) (Mckinsey & Co).
One key advancement is the integration of carrier systems, which allows freight agents worldwide to access space and rates instantly. This technology enables real-time rate discovery and booking, making the process more efficient and transparent. Such integrations ensure agents have access to available capacities and competitive rates and optimising logistics processes.
Shipa Freight is at the forefront of freight digitization; our platform enables instant rate discovery and booking for both freight and express cargo, democratising access to freight rates and making the process efficient. Our digital initiatives not only enhance operations but also support broader economic and environmental goals in the UAE.
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