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Earlier this year, our Cargonauts were active at Manifest 2024 in Las Vegas, to meet with customers, partners and industry friends from all over the air freight ecosystem. Once again, Manifest brought together a truly inspiring program of sessions and debates on the macro trends, innovations and organizations shaping the future of global logistics.
As part of the program, our Founder & Co-CEO Oliver T. Neumann spoke alongside fellow supply chain experts to explore “Uncovering how air cargo integrates with the entire supply chain”. Oliver was joined by Eugene Laney, CEO & President, American Association of Exporters and Importers, Omar Ramirez, Sr Director of Transportation, Mercado Libre, and Tod Mawhinney, Head of Cargo Americas, Swiss WorldCargo.
The panellists discussed the advantages of air freight for freight forwarders and the evolution of the mode towards modern day logistics needs. Speed and customer experience were viewed as the currency of air cargo. Tod shared, “It’s about speed, it’s about reliability…the need for speed is what air cargo does”.
Oliver added, “No matter whether the freight forwarder is in the US, Germany or South Africa, there are certain products that just need air freight – if it needs specific cooling, specific security requirements, the forwarder will always opt for air cargo”.
Transforming the capacity discovery process
The panel explored how digitalization has great potential to tackle the inherent complexities within air freight. A strong example is how digital air cargo procurement is transforming global market visibility for freight forwarders, and improving their capacity discovery and selection processes. The ability for agents to quote with high accuracy at speed means that they can deliver shippers and consignees the best possible experience.
Elevating forwarders to be able to best deploy their skills is key to improving performance. Tod added, “If you can speed up the discovery process, you can get to the part where people make the difference about the knowledge and what they do with it. People interactions will come more to the forefront and quality will improve”.
Central to the success of digitalization is balancing the need for speed with the integrity of data being used. Tod shared, “Speed requires a certain amount of quality, and we know now that quality is determined by the data. Poor data gives you poor quality”. The high quality integration of live airline capacity, such as those cargo.one maintains for its 50+ airline partners, is instrumental for satisfying today’s 24/7 supply chain needs.
cargo.one is a strong example of how the most accurate market offer data enables forwarders to leverage fully bookable offers at speed, and so stay more agile and competitive. Data integration quality is also key in “allowing ecommerce companies to deliver on their customer delivery promise”, according to Omar.
Building a sustainable future
The panel was collectively excited by industry progress around sustainability. Tod Mawhinney described the great strides Swiss WorldCargo has made with orders for ultra modern aircraft that reduce 10% of fuel burn, developing sustainable aviation fuel (SAF) including solar-energy-to-kerosine projects, and developing innovative lightweight and efficient materials to reduce environmental impacts.
Oliver highlighted that digital distribution is helping to enhance sustainability today by ensuring that aircraft fly fuller. Digital visibility of more sustainable air freight options is also a valuable driver of success. Oliver said, “It is a big difference whether a carrier flies with a new a350 or a super old 747, and showing the freight forwarders what decision to pick, one equipment or another, can change decision making”. Omar also cited Mercado Libre’s use of algorithms and systems that enable it to better utilize its aircraft across its network.
Digital drives growth for freight forwarders
The rapid adoption of digital air freight platforms in many markets was also analyzed by the experts. For example, based upon his daily discussions with freight forwarders, Oliver highlighted how digital air cargo procurement is enabling forwarders to achieve far more with existing teams and scale their operations into new geographies or sectors like never before. With new digital solutions boosting many capabilities across the air cargo ecosystem, the industry is set for exciting and record breaking years ahead.
