AI and Digitalization within Air Cargo

How will AI impact air cargo and the progress towards digitalization?

AI and digitalization have the potential to meaningfully impact air cargo processes and operations, as well as rules and regulations that will be needed to monitor the use of these tools.

At the recent NCBFAA annual conference, AI was all the buzz around how regulations will be developed and implemented to ensure that regulatory compliance measures are met.  This includes classification of goods and potentially targeting illegal cargo from being moved on air craft via digitized screening methods.  US Customs and Border Protection (CBP) issued a recent CSMS, which is aimed at ecommerce shipments, where AI will be used for “vague cargo descriptions”.  The utilization of AI here may very well affect the timing of release for ecommerce cargo and the entry type that may be used.  Here, AI could slow down air cargo moves.

On the other hand, AI has the possibility to speed up ecommerce air cargo shipments by providing the industry with data on predictive maintenance, route optimization, cargo handling, and demand forecasting.  The execution of digitalization in Air Cargo Community Systems (ACS), of which Kale Logistics is a global leader, will use AI to better position the stakeholder’s awareness of cargo statuses and allow the community to have more efficient operations for air cargo handling. 

Using AI and digitalization, cargo community systems allow the air cargo community to receive and send advanced shipment information to authorized trade partners.  Through this data exchange truckers know when cargo is ready, or not, therefore allowing them to more effectively prepare their trips to the air cargo handling facilities.  This helps to reduce waisted time, money, and fuel that is required to provide last mile delivery of air cargo. 

This digital data exchange also allows for better targeting of legitimate air cargo shipments, thus expediting the shipment.  Both private and public sectors benefit from AI when enhanced security is met using AI detecting tools to point out potential anomalies in the cargo shipment.  Having digitized tools to connect SKU level details directly to the cargo move and clearance gets lawful and legal goods to the end consumer quicker.

AI-powered chatbots can improve customer and user experience by providing data driven message sets for general inquiries of the cargo status.  These digital tools help to reduce phone calls and time holding for a human to research and respond.  While AI chatbots will not replace the human hand, they certainly can help get the needed information to the customer quicker.  An in the air cargo world, speed is one of the most important factors of the cargo movement.

AI and digitalization can help drive better data analytics as enormous amounts of data can be consumed and assimilated in mere seconds, which would take hours to do manually.  This data can include statistics from the moment the air cargo shipment is tendered for carriage up to the date and time of delivery.  Therefore, allowing the air cargo community stakeholders to make decisions based on historical data.

The key to how AI will impact air cargo and the progress towards digitalization revolves around the air cargo community working together to collaborate as partners with their customers, including the nonconventional customers, in something like an air cargo community system.  Data sharing is needed among the air cargo partners whether they are a billing customer or a non-billing customer in the supply chain.  Data can and must be shared with trusted and authorized trade partners, including our government partners, as soon in the shipment process as possible in order for the digital tools we have to do their job.

As I often do, I will again quote former CBP Commissioner William von Raab who told the trade community in the 1980’s – “Automate or perish”.