The pace of modernisation in airfreight and air cargo often faces criticism for being slow. However, things are changing in a bid to aid the industry as it generates increasingly immense amounts of data amid the development of artificial intelligence and the overhaul of legacy systems and infrastructure.
Across the industry, companies have been introducing new technologies in a way that complements and enhances current processes rather than replacing them entirely, focusing on seamless integration and ensuring that new tools can be easily adopted without disrupting established workflows.
By gradually incorporating these innovations, companies can improve existing processes effectively while minimising risk and maximising the benefits of both legacy systems and new technologies.
“Our approach to make data more actionable and useful to companies involves two key components,” Chris McDermott, Chief Executive Officer of CHAMP Cargosystems, stated.
“First, we’ve built a data lake that consolidates all data, enabling deep analysis and insights. For example, our MarketAnalytics tool provides detailed information down to the commodity level, based on airway bill data. “One of the key changes we’ve made is essentially turning our platform inside out by adopting a microservices architecture. This approach allows our services to easily connect with the outside world.
Our goal is to foster innovation by enabling seamless integration with our platform.” “Second, we leverage AI and large language models trained on this data to gain actionable insights. These technologies are already integrated into our products, and we see AI as transformative—comparable to the impact of the internet.
“For example, in air cargo, many processes, such as end-of-process checks, are traditionally done later. However, we’ve introduced checks up front by integrating with partners to allow for sanction checks at the start, providing users with an early indication of the likely outcome.”
Mindset shift
One of the biggest hurdles in driving industry-wide change is bridging the gap between innovative companies and those that are more resistant to technology. This divide, where tech-forward companies are working with tech-averse ones, can slow down the entire supply chain’s progress.
“This challenge ties into the Rogers Diffusion Curve. When you reach the majority stage, scepticism tends to increase. People in this group are the ones who question whether the product meets industry standards and want proof that it works. When working with innovators and early adopters, it’s crucial to refine the product until it’s compelling enough for the early majority to see its value,” McDermott stated.
“However, to win over the majority, the product has to be significantly better than what was already in place. In a keynote speech I gave at the IATA Digital Conference, I discussed Geoffrey Moore’s concept of “Crossing the Chasm.” I would argue that XML, for instance, got stuck on one side of the chasm because it didn’t offer enough differentiation from existing systems. People were asking, “Why invest in messaging when it’s already being done?”
“With innovations like ONE Record, we are focused on adding real value rather than merely replicating what’s already there. If the goal is just to replicate, it will never gain traction. By emphasising innovations that offer real improvements, we can help others see the benefits and encourage wider adoption.”
Industry appeal
It’s not just about the advantages of technological innovation, it’s also about the longevity of the logistics sector through attracting talent, increasing industry appeal and fostering the next generation of workers. “People need to adapt to the technological changes, and processes may need to be adjusted to fully leverage the benefits. For example, transitioning to real-time information requires a shift in how that information is processed and utilised,” McDermott explained.
We launched a program called Jump Start to attract younger talent into the industry. This year, for example, we recruited graduates right out of university with strong skills in areas like AI. “These young professionals bring fresh perspectives and challenge us, which is invaluable. We also organise internal hackathons, where the whole company votes on the best ideas. This not only sparks enthusiasm but also encourages the entire workforce to engage with and understand emerging trends and the possibilities ahead.“ “Additionally, the winners of our internal hackathons go on to represent the company at the IATA hackathons, creating a full cycle of innovation.
