Despite rapid advancements in logistics technology, a surprising reality remains—75 percent of shippers still rely on Excel spreadsheets and manual processes for freight procurement. In an era where digitalisation is transforming every sector, why is air cargo procurement still lagging behind?

The logistics sector is under constant pressure to optimise costs and improve efficiency, yet many businesses continue to manage their freight tenders manually.

“It’s incredible that even some of the biggest companies are still running procurement on Excel files, endless email chains, and outdated processes,” Oliver Esch, Vice President of Business Development at SHIPSTA by Freightos, said.

 “These methods not only slow down decision-making but also leave companies vulnerable to errors, cost inefficiencies, and market fluctuations.”

The resistance to change, he explains, stems largely from organisational inertia and fear of disrupting existing workflows.

“Many companies have been operating the same way for decades and see digitalisation as an unnecessary risk rather than a competitive advantage,” he noted.

While the industry has been slow to embrace digitalisation, the shift is inevitable. AI-powered procurement platforms are rapidly gaining traction, offering real-time rate benchmarking, predictive analytics, and automated negotiations that help businesses secure the best possible freight rates with minimal manual effort.

“Freight procurement doesn’t have to be a guessing game anymore,” Esch explained.

 “With AI and data-driven tools, companies can access instant market insights, track cost trends, and adjust their procurement strategies in real time. This means no more outdated rate sheets, no more last-minute tenders, and no more overpaying for freight space.”

For many companies, data visibility is still a major challenge. Without accurate and real-time freight cost data, businesses struggle to negotiate effectively, forecast expenses, or optimise their supply chains.

“Most logistics teams don’t have access to a single, centralised platform where they can see all their procurement data in one place,” Esch said.

 “Instead, they’re working across multiple disconnected systems, relying on historical rates, or making decisions based on incomplete information.”

To address this, SHIPSTA’s digital procurement platform aggregates real-time pricing data, enabling logistics teams to benchmark rates, monitor carrier performance, and adjust procurement strategies dynamically. 

“Having the right data at the right time is what separates the industry leaders from those constantly fighting to keep up,” he added.

No longer a buzzword

Beyond cost optimisation, sustainability is becoming a major driver in decisions. With global net-zero targets looming, companies are increasingly integrating CO2 emissions tracking into their procurement strategies.

“Two years ago, sustainability was just a buzzword—something companies talked about but didn’t prioritise in decision-making. That’s changing fast,” Esch observed. 

“Now, shippers are demanding green procurement options, and many are willing to pay more to reduce their carbon footprint.”

For air cargo, where carbon emissions are significantly higher than sea or road freight, transparency and offsetting strategies are becoming essential.

 “The challenge is balancing cost efficiency with sustainability goals,” Esch explained. 

“Companies are starting to ask: Do we choose the cheapest provider, or do we invest in a greener supply chain that aligns with our long-term sustainability commitments?”

One of the biggest shifts in procurement strategy is the move towards index-linked contracts, where freight rates automatically adjust based on market conditions rather than being locked in through long-term tenders.

“Traditionally, shippers either overpaid for rates during downturns or found themselves scrambling for capacity when prices skyrocketed,” Esch explained.

 “With index-based pricing, rates are dynamically adjusted, ensuring both shippers and carriers benefit from fair market pricing at all times.”

This trend is expected to gain further momentum as businesses seek more agile, cost-effective procurement strategies that can withstand global market volatility.

The time for change is now

The message is clear: Freight procurement is overdue for a digital revolution. Companies that continue to rely on outdated manual processes will struggle to remain competitive, while those embracing AI, real-time data, and digital platforms will gain a clear advantage in cost efficiency, decision-making, and sustainability.

“The world of freight procurement is changing,” Esch concluded. “The question is—are you adapting with it, or will you be left behind?”