Air cargo's top 3 tech trends of 2019

Although 2019 was a challenging year for air cargo, it did see an exponential boom in the design and application of several disruptive technological products. Air cargo is often bemoaned as sorely lagging in digitalization, but 2019 could be remembered as a turning point for the industry. This year, air cargo had to not only evolve to meet booming e-commerce, perishable and specialty cargo demands anticipated to carry on into 2020, but also had to accommodate shifting production and trade lanes for these products amid uncertain trade environments and consumer expectations. Taking this time to reflect on the past twelve months, read on for the top 3 tech trends Air Cargo World saw over the course of 2019. #3 Drone development race Although society has not pioneered the use of unmanned aerial vehicles (UAVs, or drones) for dog walking, as seen during Marty McFly’s visit to the 21 st century in Back to the Future Part II , the boom in drone tests this year did initiate a race to develop drones for large scale commercial operations to deliver cargo. Although the exploration of drones to carry goods and shipments is still in its early stages and remains highly contested with varied approaches to regulation and adoption by region, stakeholders in air cargo recognize that technology presents an opportunity to fill gaps in supply chains and access new markets. This year saw a series of leaps in the evolution of drone technology. In North America, UPS subsidiary UPS Flight Forward (UPS FFF) acquire the approval of the United States Federal Aviation Administration (FAA) to operate a drone airline in October, while Amazon also petitioned the FAA for approval in August. Some airports, like London Heathrow (LHR) and Gatwick (LGW) airports, banned the operation of drones. Others, like Edmonton International Airport (YEG) and Helsinki (HEL), have taken the opposite approach and instead are working with companies, like Drone Delivery Canada and Skyports, respectively, to establish and test on-airport drone operations. Globally, companies tested the actual delivery of products ranging from KFC to medicine by drones, as well as the use of drones in warehouse operations. Beyond residential and commercial deliveries, some companies are using drones to explore the delivery of goods to remote communities and disaster relief operations. The development of this disruptive technology was clearly a hallmark of 2019 and is a trend the industry can expect to continue into 2020. #2 Smart, sustainable operations Adjacent to global youth climate protests and Time Magazine naming of Greta Thunberg its “Person of the Year,” air cargo and logistics stakeholders worked to instill smarter and more sustainable designs across their operations in support of the green movement. Several European operators are moving to reduce their carbon footprint and in December leading European carriers called on European Union policymakers streamline regulations in support of environmental efforts, but the green logistics movement is also gaining global traction . In September, Amazon placed an order for 100,000 electric delivery vehicles while also announcing its new Climate Pledge, aiming to meet the Paris Agreement 10 years ahead of schedule. Meanwhile, Kuwait-based Agility Ventures announced an $18 million investment in technologies to make its supply chain more energy-efficient, and DB Schenker opened a massive, solar-powered logistics and distribution center near Dubai World Central International Airport (DWC). Airports are also improving environmental sustainability practices and technology in airport operations. International airports Frankfurt (FRA), Hong Kong (HKG) and Los Angeles (LAX) have invested in planet-friendly projects ranging from local sustainability projects to coastal dune and forest restoration. Fraport AG at FRA is developing a “smart air cargo trailer” (SAT) to reduce carbon emissions, and Zhengzhou Airport (CGO) is exploring cooperation with sustainable fuel businesses. #1 Digitalized management systems Perhaps the biggest trend of 2019 was the major development and application of digitalized data and cargo management systems across logistics and air cargo. While platforms still remain highly fragmented – perhaps foreshadowing an eventual battle over who will lead the market, reminiscent of those being waged between streaming platforms like Netflix and Hulu – the technology undoubtedly took off this year. Several key players in the pool of developing cargo management systems emerged this year. Germany-based cargo.one saw seven carriers, including Etihad Cargo , Nippon Cargo , El Al Cargo , Finnair Cargo , Lufthansa Cargo , AirBridgeCargo and CargoLogicAir , sign onto its platform, which allows freight forwarders to book capacity on its member carriers’ flights. Meanwhile, U.K.-based Hermes Logistics Technologies began rolling out the H5 system – the latest version of the cloud-based Hermes cargo management application that is designed to improve service management, revenue accounting, process automation and service failure avoidance – in the operations of various airports, airlines and ground handlers across the globe, including Hanoi Airport (HAN), RSA National, LuxairCARGO , CHS Trade and Menzies . A legal battle also flared up between logistics payment platform competitors PayCargo and CargoSprint in the middle of the year, which has yet to be resolved and saw recent additional filings to the case by PayCargo in December. The development of these software-as-a-service and digital cloud platforms will be one to watch over the coming year as air cargo seeks to capitalize on business during what stakeholders are hoping will be a more lucrative year.

Air cargo’s top 3 tech trends of 2019

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