At the heart of the evolution in the airfreight industry are three powerful forces: the rise of e-commerce, the integration of artificial intelligence (AI), and a surge in venture capital investment. Together, these factors are accelerating the digitisation of air cargo operations, reshaping the industry to meet the demands of a rapidly changing global economy.
Offering insights into how these trends are converging to drive the industry forward, Alex Khor, Co-founder of Belli, stated: “e-commerce, AI, and venture capital are not just disrupting air cargo—they are redefining it.
“The speed of innovation we’re witnessing today is unprecedented, and the opportunities are immense for those willing to embrace change.”
The catalyst
e-commerce has been a game-changer for air cargo, driving unprecedented demand for speed, efficiency, and reliability. The explosive growth of online shopping has put pressure on logistics providers to deliver goods faster, particularly for time-sensitive shipments such as electronics and fashion.
“e-commerce is not just a trend; it’s a paradigm shift in consumer behaviour,” Khor explained.
“The expectation for next-day or even same-day delivery is pushing the air cargo industry to innovate like never before.”
Airlines and logistics companies are investing heavily in digital platforms to manage this demand. These systems enable real-time tracking, automated booking processes, and optimised routing, ensuring that shipments move smoothly through increasingly complex supply chains.
AI’s role
AI is emerging as a cornerstone of air cargo digitisation, offering solutions to long-standing inefficiencies in the industry. From predictive maintenance to dynamic pricing and capacity forecasting, AI is enabling carriers to optimise operations and reduce costs.
“AI is transforming the way we approach logistics,” Khor noted. “It’s not just about automation; it’s about making smarter decisions faster. For instance, AI algorithms can predict demand spikes and adjust capacity in real-time, ensuring that assets are used efficiently.”
AI-powered systems are also improving customer experience. Chatbots and virtual assistants streamline the booking process, while machine learning algorithms provide personalised recommendations for shipping solutions.
However, Khor cautioned that the adoption of AI is not without challenges: “The key is not just collecting data but ensuring its quality and relevance. AI is only as good as the data it’s fed.”
Fuelling innovation
The influx of venture capital into the air cargo sector has accelerated the pace of innovation. Start-ups and tech companies are developing solutions that address critical pain points, from digital freight booking platforms to blockchain-based tracking systems.
“Venture capital is a game-changer for air cargo,” Khor said. “It provides the financial backing needed to experiment, scale, and bring disruptive ideas to market.”
Belli itself has benefitted from this trend, securing funding to develop its AI-driven logistics platform.
According to Khor, venture capital is not just about money; it’s about fostering a culture of innovation: “VC-backed companies bring a fresh perspective to the industry, challenging traditional models and driving digital transformation.”
Challenges and opportunities
Despite the progress, the journey toward full digitisation is not without hurdles. Legacy systems, regulatory complexities, and resistance to change are significant barriers. Moreover, the integration of new technologies often requires substantial investment and expertise, which can be challenging for smaller players.
Yet, the opportunities are vast. Digitisation not only improves efficiency but also enhances sustainability by optimising routes and reducing fuel consumption. It also opens up new revenue streams through value-added services like data analytics and predictive insights.
“The challenges are real, but so are the rewards,” Khor emphasised. “Digitisation is not just an operational necessity; it’s a strategic imperative for staying competitive in a rapidly evolving market.”
Road ahead
As e-commerce continues to grow, AI becomes more sophisticated, and venture capital flows into the sector, the air cargo industry is poised for a digital revolution. Companies that embrace these changes will be better positioned to meet customer expectations, streamline operations, and unlock new opportunities.
Khor concluded with an optimistic outlook. “The future of air cargo is digital, and the pace of transformation will only accelerate. By leveraging e-commerce, AI, and venture capital, we can create a more efficient, sustainable, and customer-centric industry.”
