Driving forces behind market growth

Driving forces behind market growth

As global commerce accelerates and digital logistics platforms evolve, the Unit Load Device (ULD) market is benefitting from e-commerce expansion and the adoption of next-generation smart containers.

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“There will be a few key drivers of the global ULD market,” Kenneth Poon, General Manager of Mercury ULD, explained. “The frequency of trades and e-commerce that demand more flights to move cargo and subsequently require more ULDs.”

However, this growth isn’t limited to volume. Structural shifts in global aviation also play a part. “New aircraft deliveries and new routes to emerging markets require airlines to purchase ULDs [and] will also contribute to the global market,” Poon stated.

These new routes often serve regions with growing middle classes and manufacturing sectors, signalling long-term demand for air cargo infrastructure. “More and more airlines are replacing ULDs with ‘Smart ULDs’ where IoT sensors are integrated with a ULD for real-time tracking,” he revealed, reflecting a move toward enhanced visibility, efficiency, and safety—qualities that are key.

Beyond traditional units, there’s a growing appetite for specialised containers.

“There will also be demand for specialised containers such as temperature-controlled containers as there is increasing demand for these units for the transportation of vaccines and biologics,” Poon noted, especially relevant in the post-pandemic landscape, where cold chain integrity has become a public health imperative.

Merging AI and tracking

Operational efficiency in the ULD sector is no longer just about speed—it’s about insight, automation, and sustainability. At Mercury ULD, this has led to the deployment of a dual-track technology strategy that leverages both real-time data and predictive analytics.

“We are advancing a dual strategy to enhance logistics through technology,” Poon explained. “First, real-time fleet tracking systems will be deployed to monitor location and performance. This boosts visibility into utilisation and route efficiency and cuts downtime.”

By knowing where every asset is at any given moment, Mercury ULD can reduce idle time, improve repositioning accuracy, and streamline asset use across airline fleets. But Mercury ULD is also looking ahead.

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“Simultaneously, we are in the initial stage of exploring the use of AI-driven analytics to forecast ULD demand by analysing historical data on cargo volumes, seasonal trends, and asset turnover,” Poon outlined, allowing the company to dynamically match supply with anticipated demand—helping carriers avoid overstocking while ensuring availability during peak periods.

“Machine learning will refine ULD allocation accuracy, maximising asset use, optimising inventory, and strategically reducing fleet size while meeting customer demand,” Poon added, addressing both economic and environmental priorities.

These digital upgrades do more than cut costs—they make a meaningful environmental impact. “These innovations aim to reduce capital costs, carbon emissions, and redundancies while ensuring scalability,” Poon stated.

Transforming safety and transparency

With the ULD industry embracing smart technology at scale, Kenneth Poon offered a comprehensive overview of how these innovations are reshaping both safety protocols and operational workflows.

“In recent years, the ULD market has increasingly adopted technologies such as IoT-enabled smart ULDs, Bluetooth, RFID, and AI to improve efficiency and safety,” he expressed.

These aren’t just incremental upgrades—they represent a paradigm shift. “IoT sensors integrated into ULDs enable real-time GPS tracking and monitor environmental conditions (temperature, humidity), minimising cargo loss and streamlining route optimisation,” Poon explained.

The evolution extends to cargo handling. “RFID tags replace manual scans, reducing human error and speeding up cargo processing,” he noted. “AI leverages sensor data to forecast maintenance requirements and balance load distribution, averting equipment malfunctions and cutting downtime.”

Even the warehouse environment is being revolutionised. “Bluetooth technology further enhances asset visibility in confined spaces like warehouses,” Poon added.

These technologies aren’t simply bells and whistles—they’re essential tools in the face of rising customer expectations and regulatory scrutiny.

“Collectively, these advancements foster greater supply chain transparency, minimise delays, and reinforce cargo security,” Poon concluded. “By merging connectivity, automation, and predictive analytics, the industry is achieving smarter, safer, and more agile logistics management.”

Picture of Anastasiya Simsek

Anastasiya Simsek

Anastasiya Simsek is an award-winning journalist with a background in air cargo, news, medicine, and lifestyle reporting. For exclusive insights or to share your news, contact Anastasiya at anastasiya.simsek@aircargoweek.com.

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