One common observation in the cargo industry is that it’s often perceived to be years behind the passenger side in terms of digital adoption. This, therefore, creates an opportunity to draw lessons from the passenger sector’s embrace of digital tools, from online marketplaces to advanced revenue management systems, and apply them to cargo.
“From my previous role on the passenger side of the industry, I’ve witnessed significant shifts, particularly in the adoption of technology and the rise of marketplaces. These experiences influenced my journey to CargoTech, where we aim to bring similar technological advancements and innovations to the cargo sector,” Michael Teoh, Head of Strategy at CargoTech, stated.
The challenges in digitising cargo are plenty, especially around aligning the ecosystem. No single solution addresses every problem, so collaboration is critical.
“CargoTech, as it stands, consists of five entities: Wiremind, Rotate, CargoAi, Aerios, and ECS Group’s Cargo Digital Factory,” Teoh continued.
“From a technological and progress standpoint, the advancements we’ve seen in the passenger segment are what we’re striving to replicate and adapt in the cargo world. The opportunities are vast, though the challenges are equally significant. In driving value chain solutions, CargoTech has a unique role to play and can deliver significant value to the air cargo industry.”
Innovative ecosystem
Recognising how interconnected the airfreight industry, and wider supply chain is, CargoTech’s mission is to create a one-stop shop to assist airlines, ground handlers, and other value chain partners in embarking on their digital transformation journey, working with like-minded players to address specific problems.
These partners range from those in the early stages—looking for solutions like booking management, rate distribution, or revenue management—to those with more mature strategies.
“CargoTech’s approach is centred on collaborating with industry players. Today, many of the projects we’re approached for are driven by problem statements from customers,” Teoh highlighted.
“They recognise that there isn’t a single solution that can address all the challenges in cargo. Instead, they come to us asking how CargoTech can collaborate with them to tackle these issues together.
“When we address one problem, it often resolves part of a larger value chain challenge. These problems span areas such as booking, capacity management, forecasting, revenue management, data availability, and insights. Solving them requires an ecosystem approach, as each player has a role to play. However, true success comes from deeper collaboration across the ecosystem to deliver comprehensive solutions. That’s the vision CargoTech is working to bring to life.”
Proactive approach
CargoTech’s approach is rooted in an innovative mindset. Since joining in 2024, Teoh has engaged with the co-founders and leadership teams of the portfolio companies, finding that one thing stands out: their collective commitment to solving customer and partner challenges without being deterred by industry constraints or external limitations.
“Our focus isn’t on highlighting challenges like incomplete records, outdated regulations, or systemic barriers. Instead, we ask, “What can we do from a technology standpoint to address this problem?” Teoh elaborated.
“Of course, compliance and legal requirements remain priorities, but we don’t let external dependencies or slower-moving entities dictate our pace of innovation. We recognise that if we simply follow the industry’s existing playbook and wait for policymakers or associations to take the lead, we’ll always lag behind. True innovation requires us to think ahead, challenge the status quo, and actively create solutions that drive the industry forward.
“This forward-thinking approach ensures that we’re not just solving problems but also reshaping the industry to meet the demands of today and tomorrow.”
Bridging airfreight and technology
Today, CargoTech operates with a team of around 100 people across its portfolio companies. This group is made up of a combination of cargo experts and technology specialists, which allows for the grouping to provide comprehensive support to its customers.
“While our technology tools can support these varying approaches, each type of partnership requires a tailored solution. For example, combining capacity, aligning sales strategies, and jointly marketing the offering might be common goals, but the tools and processes need to be fine-tuned to fit the specifics of the partnership,” Teoh outlined.
“With the strategic insight available and the cargo expertise from our portfolio companies, we work together to design and develop solutions that are customised to meet our customers’ unique requirements.
“When a customer approaches us with a problem statement or a clear vision, we collaborate closely to develop a tailored solution. Additionally, we look for opportunities to connect them with other players in the ecosystem who may face similar challenges. This cross-sharing of data and insights across partners allows for greater innovation and efficiency.”
