While technological adoption has historically lagged in the airfreight industry, the need for digitalisation is now undeniable, with a wave of change rippling through the industry as stakeholders increasingly recognise the efficiencies and competitive advantages offered by digital tools.
Across the supply chain, companies are forging partnerships with digital-focused providers to meet growing customer demands for streamlined digital processes and the integration of artificial intelligence and other advanced technologies has shifted amid a cultural shift within organisations.
“Over the past few years, we’ve built a valuable asset by integrating and cooperating with numerous partners,” Moritz Claussen, co-founder and co-CEO of cargo.one, outlined.
“These live connections have been a major focus, enabling real-time capacity procurement with instant confirmation. For the last 18 months, we’ve also heavily invested in advanced rate procurement and management systems tailored for freight forwarders.
“These systems allow forwarders to manage buy rates, convert them into sell rates, and share accurate quotations with shippers quickly. Speed and accuracy in quoting significantly improve the chances of winning business, and that’s the core of our mission.”
Efficient operations
By leveraging integrations, freight forwarders can now generate door-to-door quotes in real time. This transformation addresses the rising demand for end-to-end visibility and efficiency from shippers, especially in ad hoc back-to-back processes.
To meet these demands, forwarders must digitalise backend functions—pricing, margin calculation, and rate management—to serve their customers faster and better.
“AI plays a transformative role in managing and understanding vast amounts of data. By converting unstructured data from emails or calls into structured formats, we enable freight forwarders to manage rates and costs more effectively,” Claussen expressed.
“Beyond that, conversational AI models are revolutionising interactions, freeing up human resources to focus on strategic, relationship-driven tasks rather than transactional duties. This shift not only enhances operational efficiency but also creates more fulfilling roles for employees, addressing talent shortages across the industry.”
Moving forward together
The prevailing strategy now focuses on creating coalitions of willing partners to drive innovation and adoption. This approach has led to the standardisation of data exchange formats, now used by over 55 airlines, without formal industry mandates.
Technology like AI further enhances these efforts, enabling the translation of unstructured data into actionable insights. This helps streamline processes such as quoting and capacity searches, reducing manual intervention and improving efficiency.
“The necessity for digitisation is clear. Although some players were initially hesitant, we’ve seen growing adoption across the sector,” Claussen stated.
“Those previously resistant to change are now joining in, recognising the efficiencies digital solutions bring.
“In the next five years, we expect to see substantial progress in standardising and adopting digital tools industry-wide, driven by the recognition of their value and the competitive pressure to innovate.”
