How the tech-powered future of air cargo is taking flight

As the air cargo market continues to grow, cutting-edge solutions are essential for solving capacity challenges, improving operational workflows, and promoting sustainability in the industry.

The air freight industry stands at an unprecedented crossroads of innovation and transformation. Long considered the fastest but most expensive mode of cargo transport, air freight is experiencing a technological renaissance that promises to reshape its fundamental operations, efficiency, and environmental impact. As global supply chains become increasingly complex and consumer expectations for rapid delivery continue to rise, technological advancements are providing solutions that were unimaginable just a decade ago. From artificial intelligence and blockchain to automated handling systems and sustainable aviation fuels, these innovations are not merely incremental improvements but revolutionary changes that are redefining what's possible in the movement of goods by air.

This transformation comes at a critical time as the industry rebounds from the disruptions of recent years and looks toward a future where agility, reliability, and sustainability will determine competitive advantage.

The International Air Transport Association (IATA) has predicted that air cargo volumes will increase by 5.8% in 2025, reaching 72.5 million tonnes. This growth is anticipated to be driven by booming e-commerce and geopolitical factors influencing sea shipments. The industry’s long-term growth outlook remains positive, with forecasts of an average annual growth of 3.1% from 2027 to 2043. This anticipated growth underscores the urgency for the industry to adopt scalable, intelligent technologies.

Digital transformation and community systems
The digitalisation of air freight processes has emerged as the foundational element of the industry's technological revolution. Leading this transformation are cargo community systems that serve as digital platforms connecting all stakeholders in the air cargo supply chain.

Fraport, operator of Frankfurt Airport (FRA), one of Europe's largest cargo hubs, exemplifies this approach through its joint venture allivate with software company DAKOSY to further develop the FAIR@Link Cargo Community System.

“Fraport is actively addressing technological challenges in air cargo operations, primarily through the implementation and development of the Cargo Community System FAIR@Link. Last year, we founded the joint venture, allivate, with software company DAKOSY to drive the digitisation of air cargo handling both in Frankfurt and internationally and to further develop FAIR@Link. This system aims to facilitate efficient, reliable, and well-organised cargo flow by automating data exchange between various stakeholders,” says Martina Schikorr, Managing Director, allivate.

Allivate’s other product, Speedgate Connect, is aimed at handling agents who do not have a transfer area directly on the airport apron. The solution enhances digitalisation at neutral freight transfer points, offering key benefits such as a detailed graphic overview of lanes, intuitive lane assignment, faster processes through technical integration, and improved communication across interfaces.

“Fraport is committed to engaging with international bodies to establish standards that ensure safety, efficiency, and global consistency.”
Martina Schikorr, allivate

At Frankfurt Airport, the Speedgate facility offers direct apron access for both import and export cargo. With Speedgate Connect, the entire process is streamlined through automated slot bookings, delivering greater transparency and full oversight of incoming and outgoing cargo units.

The impact of such digital platforms extends beyond mere convenience. Similar digital transformation initiatives are underway at major cargo hubs worldwide.

SATS, one of the world's largest providers of air cargo handling services, headquartered in Singapore, has implemented its COSYS+ mobility module across its network in Asia Pacific. “This allows our staff to update shipment statuses throughout the warehouse without needing to return to the office, significantly improving accuracy and efficiency,” says Bob Chi, CEO of Gateway Services, Asia-Pacific, SATS.

Artificial intelligence (AI) and machine learning (ML)
Artificial intelligence and machine learning have emerged as transformative forces in air freight, bringing unprecedented levels of predictive capability and optimisation to an industry historically constrained by manual planning processes. These technologies are being applied across multiple domains, from demand forecasting and pricing to operational planning and cargo handling.

Speedcargo, a Singapore-based technology company specialising in cargo digitalisation and automation, exemplifies the revolutionary potential of AI in the air freight industry.

“Assemble is a deep-tech software solution that plans for optimal cargo capacity utilisation on Unit Load Devices (ULDs) in seconds, while adhering to rules specified by the IATA, the airline, and for revenue and yield maximisation. The algorithms have been designed specifically for use in the air freight environment and are deployed both for planning the load to be carried on a flight and the execution of the build-up plans for each ULD. It auto-generates step-by-step build-up instructions for ULDs. A digital guided workflow provides intuitive, visual instructions for cargo retrieval and placement of cargo within the ULDs,” says Dr. Suraj Nair, Founder and CEO, Speedcargo.

Nair mentions that this system enables ground handlers to optimise operations in several ways. Real-time access to information about cargo ready for carriage allows planners to maximise capacity on ULDs by creating efficient build-up plans for each unit. The system can auto-generate a detailed build-up plan, including the sequence of cargo retrieval and a step-by-step guide for build-up, while also remaining flexible to last-minute changes. Productivity is improved by enabling planners to manage multiple flights simultaneously, reducing the number of open pallets, and eliminating manual data entry through digital build-up records. Additionally, cargo occupancy data, including usable space on each ULD, can be shared with airlines, who can use it for forward and hub operations, as well as for creating booking models.

Amplifi by Speedcargo takes capacity utilisation to the next level by optimising the booking, trimming, and load plan generation processes for airlines. Additionally, it seamlessly integrates with ground handling agent (GHA) operations through Cargo Eye and Assemble, providing a comprehensive solution that enhances the entire cargo handling workflow.

While discussing this, Nair mentions that it has brought a 6-15% improvement in capacity utilisation.

Beyond loading optimisation, AI and machine learning are transforming other critical aspects of air freight operations. Revenue management systems powered by these technologies now dynamically adjust pricing based on multiple variables, including capacity, demand forecasts, competitor pricing, fuel costs, and weather conditions.

“We are expecting a brownfield deployment first, and as confidence builds in automation to address the needs of the industry, the adoption will move towards large hubs that are looking to upgrade their infrastructure.”
Dr. Suraj Nair, Speedcargo Technologies

AI adoption has reached cargo terminals as well. Last year, Cathay Cargo Terminal became Hong Kong’s first air cargo facility to integrate AI with its CCTV system, enhancing safety and security monitoring. The technology detects risks like missing safety gear or unsafe proximity between vehicles, equipment, and workers.

Hong Kong Air Cargo Terminals Limited (Hactl) has partnered with Hong Kong Telecom (HKT) to launch Hong Kong’s first air cargo terminal powered by a 5G private network. The high-speed connectivity supports AI-powered patrol robots that monitor cargo areas in real time, stream live video to the security control centre, and enhance security by detecting anomalies and reducing manual surveillance.

IoT and advanced tracking technologies
The Internet of Things (IoT) has transformed visibility in air freight through the deployment of sophisticated sensors and tracking devices. These technologies now provide unprecedented insights into shipment conditions and locations throughout the air freight journey. Modern IoT devices monitor not only location but also temperature, humidity, pressure, light exposure, and shock events, critical parameters for sensitive cargo such as pharmaceuticals, electronics, and perishables.

These devices now transmit data continuously through cellular networks or satellite connectivity, creating a digital twin of the physical shipment that stakeholders can monitor in real-time.

“SATS has implemented "Arrow" and "eReadback" technology, these innovations digitise apron loading instructions, monitor the loading of Unit Load Devices (ULDs), eliminate manual readbacks, and enable photo validation of loaded and locked ULDs, enhancing both safety and operational efficiency,” says Chi of SATS.

Beyond condition monitoring, IoT devices are increasingly being used to track ULDs themselves. Major airlines and ULD management companies have implemented RFID and Bluetooth-enabled tracking for their ULD fleets, as battery technology improves and IoT devices become smaller and more affordable, the industry is moving toward a future where item-level tracking becomes standard, even for lower-value shipments.

Transforming cargo handling through automation
The physical handling of air freight is undergoing a robotic revolution, with automated systems increasingly replacing manual processes in cargo terminals worldwide. This transformation addresses an industry where cargo handling has traditionally been labor-intensive, with inherent variability in shipment characteristics creating challenges for standardisation.

“Currently, there are automated storage and retrieval systems (ASRS) and conveyor systems being used in select ground handling facilities. We envision a staggering approach to automation in the air cargo industry, and we are expecting a brownfield deployment first, and as confidence builds in automation to address the needs of the industry, the adoption will move towards large hubs that are looking to upgrade their infrastructure. This will then translate to a greenfield development where automation will be the new standard for operations,” says Nair of Speedcargo.

“Fraport is actively exploring the integration of driverless ground support vehicles into airside operations. Recent tests of autonomous baggage and cargo tractors have shown promising results, prompting Fraport to focus on critical areas. The deployment of these vehicles is envisioned as a gradual process, with non-time-critical tasks potentially being the first to transition. Despite technological progress, challenges remain, especially in complex airport scenarios, requiring advancements in technology and regulatory frameworks. To address these challenges, Fraport is conducting tests with a focus on operations in adverse weather conditions, taxiway crossings with aircraft and pushback detection, and achieving higher speeds,” says Schikorr of allivate.

“By implementing technologies such as the COSYS+ mobility module, Arrow, eReadback technology, and the Groundstar system, SATS is able to streamline processes, improve safety, and optimise resource management.”
Bob Chi, SATS

Chi of SATS says that the company has implemented its Groundstar, a workforce management system, automating planning, scheduling, and task allocation for cargo handling operations. The company is rolling out this system across its stations in the Americas region. Additionally, the company has successfully tried ContourSpect, a freight dimensioning technology in Copenhagen, which optimises cargo capacity and reduces climate impact by automating dimension capture and eliminating manual measurements. SATS plans to extend this solution to other stations in Europe, the Middle East, Africa, and Asia Pacific.

Another example of advanced automation is CargoSpect, a fully automated scanning solution developed by Cind and recently deployed at IAG Cargo’s London Heathrow hub. The AI-powered system uses ten high-speed cameras to capture real-time cargo data, including dimensions and weight, handling up to 500 measurements per hour.

Digitising air cargo documentation
The air freight industry has long been burdened by paper-based processes and documentation, with a single shipment potentially requiring more than 30 different paper documents. This reliance on physical paperwork has been a significant source of inefficiency, errors, and delays. Blockchain technology is now revolutionising this aspect of air freight by enabling secure, transparent, and immutable digital documentation.

The IATA has been at the forefront of this transformation with initiatives like ONE Record, which aims to create a single digital record for each shipment. Through the IATA governance programmes, airlines have agreed that they will have developed ONE Record capability by 1 January 2026.

According to IATA, more than 200 companies worldwide are participating in pilot projects to test and implement over 25 ONE Record use cases, including the exchange of air waybill data, freight tracking, customs processes, and multimodal transport integration.

“One of the main challenges is overcoming the reliance on paper, optical character recognition (OCR) tools, and legacy systems that limit data quality. Standardisation and harmonisation among diverse stakeholders, alongside initiatives like eAWBs and ONE Record, are crucial to improving efficiency and productivity in cargo operations,” says Schikorr of allivate.

One notable example of digital transformation in customs is South Korea’s UNI-PASS, developed by the Korea Customs Service. It is the world’s first system to enable 100% online customs processing, dramatically improving speed and efficiency. UNI-PASS supports a 24-hour clearance system, export clearance that once took over a day now takes just 1.5 minutes, while import clearance has dropped from more than two days to 1.5 hours. This shift has significantly reduced logistics costs in a sector where speed is critical.

Sustainable aviation technologies
Environmental sustainability has moved from a peripheral concern to a central focus for the air freight industry. Technological innovations aimed at reducing carbon emissions are transforming operations across the sector, with sustainable aviation fuel (SAF) leading the way.

According to IATA, in 2024, SAF production volumes reached 1 million tonnes (1.3 billion litres), doubling the 0.5 million tonnes (600 million litres) produced in 2023. In 2025, SAF production is expected to reach 2.1 million tonnes (2.7 billion litres).

Schikorr of allivate says Fraport aims to achieve net-zero carbon emissions across all Group airports by 2045, with a focus on reducing its environmental footprint while maintaining operational excellence through innovation and sustainable practices. Fraport's international portfolio comprises 29 airports and airport-related companies across the globe.

She adds, “At Frankfurt Airport, allivate enhances environmental sustainability in air cargo operations by increasing process transparency and optimising planning. This leads to reduced wait times and transport movements, lowering the airport's carbon footprint. Our focus remains on improving efficiency to reduce emissions through better process management.”

“By generating digital models of cargo, applying proprietary spatial optimisation algorithms, and automating cargo handling in the warehouse, the company’s platform is designed to quickly solve the complex puzzle of safely loading aircraft with the optimal amount of cargo. Doing so allows users of Speedcargo’s platform to maximise capacity utilisation and improve efficiency while minimising their carbon footprint,” says Nair of Speedcargo.

Ground operations at airports have seen perhaps the most immediate transformation, with electric ground support equipment (GSE) rapidly replacing diesel-powered alternatives. This transition has not only reduced carbon emissions but also improved air quality around airports and reduced noise pollution.

Further, many airlines are adopting advanced technologies such as AeroSHARK, a surface film developed by Lufthansa Technik and BASF that mimics the microscopic structure of sharkskin. By reducing frictional resistance and improving airflow, AeroSHARK helps save fuel and lower emissions. Airlines such as Lufthansa, Lufthansa Cargo, SWISS, Austrian Airlines, LATAM Airlines, and All Nippon Airways (ANA) have adopted this technology. ANA recently became the first airline in the world to operate both passenger and cargo Boeing 777 aircraft equipped with AeroSHARK.

The industry is also increasingly adopting circular economy principles, with initiatives focused on recycling aircraft components and repurposing end-of-life aircraft. Several ULD management companies now offer programmes that recycle damaged containers into new products, reducing waste and creating a more sustainable lifecycle for these essential components.

The air freight industry stands at the threshold of a new era defined by intelligent automation, predictive capabilities, and sustainability. The innovations now being deployed across the sector promise to overcome traditional limitations, creating unprecedented possibilities for efficiency, reliability, and environmental performance. As these technologies continue to mature and converge, their combined impact will redefine what constitutes world-class air cargo service in the 21st century.