Cargo handling 2.0: Leveraging technology for growth and innovation

The latest round of trade tariffs imposed by U.S. President Donald Trump has created new challenges for the air cargo industry, forcing logistics providers to adapt to stricter regulatory requirements while maintaining efficiency. With heightened scrutiny on imports—particularly products like electronics, home supplies, car parts, low-cost apparel, and accessories—air cargo handlers must adapt to stricter regulatory requirements while maintaining efficiency. Technology is playing a crucial role in streamlining physical cargo handling, reducing costs, and improving customer satisfaction in this evolving landscape.

One of the most significant hurdles for air cargo operators is the need for faster and more precise screening processes at airports. Traditional manual inspections are slow, labour-intensive, and prone to errors. Instead of relying solely on documentation and manual inspections, cargo ground handlers are turning to advanced scanning systems that streamline physical cargo processing.

Advanced cargo scanners, powered by AI and machine learning, are revolutionising this process. These high-resolution scanners use X-ray and 3D imaging to analyse the contents of air shipments in real time, identifying restricted items or anomalies without manual intervention. This technology significantly reduces clearance times while ensuring compliance with evolving trade regulations. Trade restrictions often lead to bottlenecks at ports and airports as customs agencies intensify inspections and documentation requirements. This results in costly delays and increased labour demands for cargo ground handling companies.

Technology is also revolutionising the physical aspects of cargo movement. The buildup and breakup of cargo, particularly palletisation, remain highly labour-intensive. Companies like Speedcargo are deploying robotics to automate this process. By integrating AI-powered software with hardware solutions, Speedcargo is transforming cargo loading and unloading operations. Software solutions leverage vast datasets and machine learning to optimise load planning, while robotic systems handle the heavy lifting, reducing reliance on manual labour.

Another critical area of automation is the use of Automated Guided Vehicles (AGVs) in cargo handling. These autonomous vehicles streamline warehouse and terminal operations by transporting cargo with minimal human intervention. They not only improve efficiency but also enhance workplace safety, particularly in extreme weather conditions or hazardous environments. At major hubs like JFK International Airport, AGVs are already being used to transport shipments across terminals, ensuring faster turnaround times and reducing cargo damage.

Beyond automation, data-driven solutions play a vital role in modernising cargo handling. The elimination of the de minimis threshold for shipments from China and Hong Kong means increased documentation and verification at both origin and destination points. This raises operational complexities and could slow air cargo’s speed advantage. To mitigate these challenges, logistics service providers are investing in pre-clearance shipment data, allowing customs and regulatory bodies to process shipments more efficiently. The ability to pre-screen cargo reduces delays and ensures smoother border transitions, preventing contraband and fraudulent shipments from entering markets.

Cedric Millet, Chief Strategy & Digital Officer of ECS Group & President of CargoTech, noted in an interview with STAT Media, “When I need to make sense of internal data, including demand and capacity, the solution lies in AI-powered engines that associate and analyse this data, providing clear guidelines on what to target.”

The rise of IoT-enabled tracking devices is further enhancing shipment visibility. Real-time monitoring allows cargo handlers to quickly identify and address potential delays or security threats. Swissport has implemented IoT-based cargo tracking systems to improve accuracy and efficiency, ensuring shipments reach their destinations on time and in optimal condition. Such technology enhances value for shippers, who can track their cargo and monitor conditions in real time.

Blockchain technology is also gaining traction in cargo transactions. By creating a secure, tamper-proof digital record of cargo movements, blockchain eliminates paperwork delays and reduces fraud risks.

Pete Chareonwongsak, CEO of Teleport, highlighted the necessity of technological adaptation in the air cargo sector. “In the age of e-commerce, we must adapt to meet growing demands for speed, affordability, and efficiency. To achieve our goal of handling 2 million parcels daily, we rely on scalable technology and data tools,” he said in a recent LinkedIn video. The push for speed and efficiency is particularly critical in light of trade restrictions, as delays can lead to higher costs and reduced customer satisfaction.

Hong Kong Air Cargo Terminals Limited (Hactl) has been at the forefront of innovation in air cargo management. Hactl’s in-house-designed air cargo management system, COSAC-Plus, has revolutionised operations since its launch in 2012. This advanced system collects and processes cargo data, sharing it digitally with all relevant stakeholders. It links airlines, freight forwarders, logistics providers, hauliers, and government departments, ensuring total shipment visibility. The system supports e-commerce by driving automated systems and providing valuable big data analytics.

Kuehne + Nagel is at the forefront of integrating automation into air cargo handling. “Our strategy includes Automated Guided Vehicles (AGVs), robotic picking systems, and advanced conveyors to streamline operations, reduce manual labour, and minimise errors,” stated Anish Kumar Jha, Managing Director, Kuehne + Nagel for India, Sri Lanka, and the Maldives. This automation not only improves processing speed but also enhances security by reducing human intervention in sensitive cargo handling operations.

Advanced data analytics tools further improve cargo handling by identifying patterns and predicting potential delays. IAG Cargo, for instance, has integrated AI-driven security screening systems to detect anomalies and expedite clearance processes. Kuehne + Nagel’s data analytics platform enhances efficiency by predicting peak shipment times and optimising workforce allocation, ensuring smooth operations during high-demand periods.

Beyond AI and automation, the industry is also exploring autonomous vehicles and drones for cargo transportation within airport hubs and large distribution centres. These innovations could further enhance efficiency, particularly in high-traffic regions where congestion delays cargo movement. As air cargo operations become more digitised, AI-based automation is transforming how freight is handled, ensuring compliance and efficiency in an evolving logistics landscape.

In August 2023, dnata partnered with Speedcargo to deploy AI-powered cargo solutions for Etihad Cargo at Singapore Changi Airport (SIN). The ‘Cargo Eye’ system uses 3D scanning to capture precise shipment dimensions, while ‘Assemble’ generates optimal load plans, reducing manual intervention. Integrated into dnata’s warehouse management system, these tools enhance cargo capacity, minimise errors, and improve efficiency.

Leonard Rodrigues, Director of Revenue Management & Network Planning at Etihad Cargo, explained in a recent STAT Trade Times interview, "Etihad Cargo leverages AI and computer vision to optimise load planning and reduce risks. By integrating a third dimension, we create ULD-level plans that maximise cargo space and minimise overbooking or offloading risks. AI-driven predictive tools help manage disruptions, utilising predictive analytics and real-time data to mitigate risks. Our Control Centre provides real-time visibility, enabling efficient rerouting and operational continuity, even during crises like Dubai’s severe flooding."

However, the increasing reliance on technology presents new challenges. Automation may displace traditional labour roles, while the integration of digital systems introduces cybersecurity risks. Additionally, investing in AI-powered scanning, automation, and IoT infrastructure requires significant capital. Despite these hurdles, the long-term benefits—faster processing, enhanced security, and reduced operational costs—outweigh the concerns.

As air cargo operators navigate shifting trade policies, the adoption of advanced technology is no longer optional—it is essential. AI-driven scanners, robotic cargo handlers, and blockchain-based tracking systems are redefining how air freight moves across borders. By leveraging these innovations, air cargo handlers can maintain efficiency, comply with evolving regulations, and ensure seamless global trade in an increasingly complex economic environment.