Why air cargo industry is lacking in tech, how is it being addressed

The global airline industry revenue is almost $1 trillion, and cargo contribution is almost 15 percent of it but the adoption of technology and innovation in the industry is as different as chalk and cheese...

We cannot imagine the passenger industry now without barcodes and technology interventions while the majority of the air cargo industry is still using age-old methods like e-mails and phone calls. While tech adoption is improving in air cargo (what with a total addressable market of around $8 billion by 2032, up from $6 billion in 2023), a lot still needs to be done to bring the sector up to speed.

Hellmann Logistics, for example, announced plans to take its digital express solution Hellmann Express Airfreight (HEX) global soon. In partnership with Shipsy, "this collaboration is a major step forward in scaling HEX globally while delivering the speed, visibility, and efficiency our customers expect," says Timo Schamber, Global Airfreight Director, Courier, Express and Parcel Services (CEP), Hellmann Worldwide Logistics.

“Real-time shipment tracking, detailed data insights and seamless booking and invoicing through a central digital interface are critical to making HEX scalable — especially as we focus on small and mid-sized businesses in the express parcel segment. This customer group demands speed, simplicity and transparency. With Shipsy’s technology, we’re able to deliver exactly that while ensuring our processes can grow efficiently on a global scale."

ONE Record and its importance for air cargo
Various players in the value chain - airlines, forwarders, tech suppliers and regulators - are all playing their part in pushing the efforts. One key move here is the proposed adoption of ONE Record by the International Air Transport Association (IATA) by 2026.

"The vision for ONE Record is an end-to-end digital logistics and transport supply chain where data is easily and transparently exchanged in a digital ecosystem of air cargo stakeholders, communities and data platforms," says IATA.

ONE Record is a standard for data sharing and creates a single record view of the shipment, which defines a common data model for the data that is shared via standardised and secured web application programming interface (API), adds IATA.

"The best way to look at ONE Record is to take the analogy of a wonderful new tool that has just been invented. The advent of EDI (many decades back) was akin to making the jump from typewriters to first gen computers – One Record gives us the capability to make a quantum jump to seamless and limitless digitalisation of the supply chain," says Radhesh Menon, Vice President & Head of Product Cargo & Logistics Solutions, IBS Software. "This comes loaded with possibilities – like the ability to have full synchronisation of data between different parties in shipment transportation which can potentially eliminate the over the fence attitude towards data that is prevalent today leading to data misalignment, errors and generally poor intelligence across the supply chain. It also opens doors for future innovation – particularly in adoption of smart tech like IoT (Internet of Things) and for tailored products and services.”

GertJan Roelands, SVP Commercial, Air France KLM Martinair Cargo (AFKLM Cargo) acknowledges that implementing ONE Record remains a challenge. "However, at AFKLM Cargo, we strongly believe in its long-term value for the industry — especially in enabling full end-to-end data sharing, improving transparency, and supporting automation.

"That said, successful adoption requires aligned API standards, mature IT systems and operational readiness across all stakeholders. In short, we view ONE Record as a strategic direction but we also understand that its implementation will take time and require close industry collaboration."

Product innovations driving tech adoption
Arun Rajan, Chief Strategy and Innovation Officer, C.H. Robinson says they have been using generative artificial intelligence (GenAI) at scale for the exclusive benefit of customers, carriers and employees since 2023 – "and the impact is clear. The fleet of 30+ AI agents we’ve built so far creates greater efficiency and speed-to-market for our customers’ goods because they can perform certain tasks in seconds instead of the hours it might take a human to get to it in a long queue of tasks. The agents can respond to multiple requests – sometimes hundreds – simultaneously. And they operate round-the-clock days, nights and weekends.

"Our AI agents have been a significant contributor to the 30 percent productivity gains we’ve realised over two years. The time our people spent on shipping tasks our AI agents now do has been redirected into higher value work and helping our customers solve their most difficult logistics problems. The No. 1 reason our customers say they do business with us is our people. So now our cutting-edge technology enables them to get more of the thing that matters most to them."

As global logistics evolved and customer expectations rose, AFKLM Cargo recognised the growing demand for air cargo services to mirror the seamless, always-available nature of modern digital platforms. "Inspired by best-in-class B2C models, the company set out to reimagine the traditional B2B cargo experience — making it transparent, controlled, and simple, anytime and anywhere," adds Roelands.

"myCargo, the full-service digital platform and global customer touchpoint, lies at the heart of this transformation. What began as a simple, Excel-based internal tool to generate quotes has since evolved — entirely developed in-house — into a comprehensive quote-and-book solution. The original Excel rate database solution worked well for our customer service teams. From there, we had the ambition to build a solution for our customers that would allow them to do business with us anytime, anywhere — and with ease. We aimed to create something that no other player in the industry had yet achieved.

"Over time, myCargo has matured into a robust, end-to-end booking and service platform. Powered by dynamic pricing and modern revenue management systems, it enables users to book, modify, and track shipments in real time. Our commercial approach has also become more data-driven, supported by the launch of a dedicated e-acquisition team leveraging data, content, and digital engagement strategies under the principle: Know your customer, engage, and convert.

"Today, 88 per cent of all bookings are made through myCargo — a milestone that reflects both the platform’s capabilities and the trust it has earned. We consider this a strategic milestone in our transformation journey and clear confirmation from customers of the progress we’ve made."

myCargo has matured into a robust, end-to-end booking and service platform. Powered by dynamic pricing and modern revenue management systems, it enables users to book, modify, and track shipments in real time.
-GertJan Roelands, AFKLM Cargo

How is tech driving cargo sales
Sebastian Molejon Lago, Commercial Director - Enterprise Forwarders, WebCargo by Freightos, says that one of the biggest trends seen is the normalisation of digital processes across every layer of the air cargo transaction – not just the booking, but the pricing logic behind it, the quote response times and even post-booking analytics.

"Importantly, this growth isn’t limited to general cargo. We’ve seen strong adoption and expansion into pharma and dangerous goods – segments traditionally seen as too complex or sensitive for fast digital integration. That shift is significant because it signals just how much trust and confidence is building around digital tools across all cargo types.

"Globally, the momentum is impossible to ignore. India, for example, saw a 6,168 percent increase in eBookings between 2020 and 2023. That’s what happens when tools stop being merely nice to have and start solving real, daily pain points – especially around speed, compliance, and visibility. This works hand in hand with historical digitisation, like that provided by our rate management platforms.

"We’re also seeing a subtle but important shift in how digital tools are being used. In markets like Hungary, where bargaining culture still dominates, digital cargo booking platforms aren’t eliminating negotiation overnight – but they are enabling faster quoting, centralised rate management, and sharper business intelligence. Even in traditionally opaque markets, data-driven processes are helping forwarders negotiate smarter and faster.

"So the trend is clear: digitalisation is no longer just about going online. It’s about going smarter, and broader across product categories that were once considered too nuanced for digital transformation."

The fleet of 30+ AI agents we’ve built so far creates greater efficiency and speed-to-market for our customers’ goods because they can perform certain tasks in seconds instead of the hours it might take a human to get to it in a long queue of tasks.
-Arun Rajan, C.H. Robinson

The air cargo industry has seen an uptick in the digitalisation of the sales and booking process over the last few years, according to Menon of IBS Software. "This surge is due in part to the Covid pandemic and the ensuing business need for businesses to shift more to online processes. But there were clear trends towards this even before that with the emergence of forwarder booking platforms and the push towards self-service in this area. We are now pushing further on these trends through several innovations that enable carriers to move to a digital first model where business processes are designed primarily as digitally enabled, with manual or analog as the fail safe.”

The scale of C.H. Robinson’s business is one of the things that “gives our technology an edge, according to Rajan. “Because we have the most data on shipments, routings and carriers in the world, our algorithms and artificial intelligence are more powerful than that of our competitors. The expertise of our people playing the role of human-in-the-loop also accelerates the evolution and learning of our algorithms and AI. Because we serve more shippers and manage more shipments – 37 million a year – ultimately, every tech innovation we introduce has more impact than our competitors can have.”

AI and robotics - the way ahead?
PROS, as a technology solution, has been applying AI to its services for many years – but is continually investing in its platform to ensure we stay ahead of current trends, adds Simon Brau, Senior Strategic Consultant, PROS. "Our price optimisation solutions are in operation at some of the world's most recognisable air cargo operators – these partners leverage our AI and machine learning models to optimise the price points they offer. The algorithms are self-learning and can produce price recommendations for every service, across an entire network, for any customer – in milliseconds, by reviewing all transaction data, market data, capacity information and delivering a personalised price for every request. This can enable an online self-serve channel or help a salesperson produce an offer for a customer – either way, with PROS, air cargo operators win more deals, customers receive offers faster, and yields outperform the market.

"The PROS main source of feedback is from the air cargo sales and pricing/revenue management (RM) teams... they need to quickly receive winning prices that they can understand. PROS accounts outperform their competitors by delivering customers a faster response with more personalised winning prices.

"PROS is continuously upgrading its solution, with the price optimisation algorithm being upgraded with enhanced machine learning as we transitioned to a neural-network model – this provides more accuracy and better harnesses all data to effectively learn about customer behavior. Additionally, the RM science on the PROS platform for air cargo uses an innovative direct and adaptive approach: this means we no longer rely on a demand forecasting solution, and this has been critically acclaimed."

Our algorithms are self-learning and can produce price recommendations for every service, across an entire network, for any customer – in milliseconds, by reviewing all transaction data, market data, capacity information and delivering a personalised price for every request.
-Simon Brau, PROS

Without doubt, AI is the technology that will profoundly change the way we do business and even how we go about our daily lives in the next months and years, adds Menon. "IBS Software had already embarked on the AI discovery journey a few years back with the launch of the integrated revenue management function in the iCargo product. This offering leaned heavily on the usage of machine learning and deep learning algorithms to solve problems like cargo capacity forecasting, demand prediction, customer profiling and so on.

All of our technology roadmap over the years has been focussed on leveraging the capabilities that cloud had to offer. This has led to the shift from cloud based to cloud native technology and architecture which offers several capabilities in areas like scaling, flexibility, velocity of innovation and most importantly for adoption of digitalisation.
- Radhesh Menon, IBS Software

"In the past year, IBS has upped its focus on AI as a core strategy by founding the AI Centre of Excellence in the company, which essentially aims to develop a holistic AI centric approach to software – this involves rethinking of software development with an AI centric approach e.g. in using Gen AI models for software development and in core areas like testing as well as to infuse our products with AI enabled capabilities and AI driven business practices.”

Schamber of Hellmann agrees when he says: "We see significant potential for AI in air cargo - especially in automating manual, repetitive tasks, streamlining communication and enhancing forecasting and planning capabilities. While the technology is still in its early stages, the use cases are evolving rapidly. At Hellmann, we’re closely monitoring these developments and are committed to actively engaging with emerging trends to drive smarter, more efficient airfreight solutions."

Roelands of AFKLM Cargo adds that they are currently working on CRM360 and exploring various possibilities. "GenAI-based solutions for routine and administrative tasks look especially promising and will add value for both our customers and staff. Looking ahead, we expect AI development to accelerate rapidly in the coming years.

"However, to fully benefit from AI, certain enablers need to be in place — including a strong data infrastructure and well-organised knowledge management systems. Additionally, working with AI bots and agents is still relatively new, and organizations need to build expertise in this area. Starting with practical use cases, learning, and adapting along the way is crucial. We’re continuing to invest in AI-enabled tools — including chat, voice, and a priority model — to empower our service teams with cutting-edge capabilities and insights. We plan to finalise the global rollout of CRM360 by the end of August. We truly believe in a bionic model which we consider as a strategic approach which blends human capabilities with advanced technologies. This is not a fixed destination — it’s an ongoing journey of innovation and improvement and adaptation."

C.H. Robinson Managed Solutions, according to Rajan, fills a gap in the market for companies - large or small - who want to choose from a menu of interconnected 4PL, 3PL and TMS services and scale those services up or down at any time as their logistics strategy evolves. “This is beneficial for small to medium businesses who don’t have a full-time logistics staff but might have felt a 4PL was out of reach for them. A complex global shipper on the other hand might deploy a technology-only solution in Europe operated by their own people while needing more comprehensive management of air freight and carriers in Asia.”

Cloud-native infrastructure for customers
Menon says: "For sure, and this is the de-facto standard for all of our customer implementations. IBS Software made the shift to SaaS and cloud as a foundational principle several years back. All of our technology roadmap over the years has been focussed on leveraging the capabilities that cloud had to offer. This has led to the shift from cloud based to cloud native technology and architecture which offers several capabilities in areas like scaling, flexibility, velocity of innovation and most importantly for adoption of digitalisation."

We see significant potential for AI in air cargo - especially in automating manual, repetitive tasks, streamlining communication and enhancing forecasting and planning capabilities. While the technology is still in its early stages, the use cases are evolving rapidly.
- Timo Schamber, Hellmann Worldwide Logistics

Hellmann, in its efforts to continuously enhance air cargo services, is investing in extended tracking solutions and expanding API capabilities. Schamber says: "These technologies allow us to offer greater transparency, faster data exchange and more seamless integration with our customers’ systems — all of which are key to delivering a more reliable and responsive service experience."

Air cargo involves a complex supply chain with many stakeholders and interdependencies. Therefore, standardising solutions is essential to accelerating digital progress. A good example is API usage. Currently, each airline operates with its own standard, making it difficult for freight forwarders to achieve efficient direct connectivity, says Roelands of Air France KLM.

"The modernising cargo distribution (MCD) standard, currently under discussion within IATA, could help resolve this. Moreover, the air cargo industry is highly fragmented, with ongoing consolidation (M&A) leading to many forwarders using different IT systems — further slowing technological adoption.

"That said, we’ve made significant strides. Just ten years ago, most of our quotes were handled via phone or email. Today, as mentioned earlier, 88 percent of our bookings happen online. Our pricing and revenue management have also transformed — from a manual approach to fully dynamic pricing models. Currently, we’re rolling out a global CRM system in partnership with Salesforce, supported by AI-enabled solutions. This marks a new level of customer experience."

Rajan puts it in simple terms: "What I think we’re going to see is the increased application of AI agents across different formats from email to voice to document handling, AI tackling more stages of a shipment, and a progression from AI agents handling simpler tasks to more multidimensional tasks. We’re already building AI agents that help our AI agents, so logistics is not that far away from AI agents routinely conducting business with other AI agents."

Globally, the momentum is impossible to ignore. India, for example, saw a 6,168 percent increase in eBookings between 2020 and 2023. That’s what happens when tools stop being merely nice to have and start solving real, daily pain points.
- Sebastian Molejon Lago, WebCargo by Freightos

If we look ahead 5–10 years, the future of air cargo is defined by full-stack digitalisation, adds Lago of WebCargo by Freightos.

"Not just booking online but:

*Predictive quoting based on past behaviour and lane trends

*Real-time rate and capacity optimisation via AI models

*Instant quote-to-cash cycles – no more manual reconciliation; and

*Automated invoice auditing, reducing one of the biggest back-office pain points today.

"As Zvi Schreiber, CEO, Freightos, put it: AI is to logistics what the internet was to the 90s – it’s not optional. It’s foundational. Companies that don’t build on this will struggle to compete in an industry that’s becoming more transparent, more real-time, and more data-driven by the day. We’re not talking hype. We’re talking the new normal – scaled, refined, and inevitable."