Air cargo accelerates digital transformation to tackle complex logistics challenges

Air cargo has made clear progress since the pandemic forced a long-overdue rethink of how freight is booked, tracked and handed across the supply chain. Yet the sector still sits well behind passenger aviation, retail and manufacturing in digital maturity, weighed down by a business model that is far more variable, document-heavy and operationally intricate than the one-seat-one-customer world of commercial travel.

That gap begins with the cargo itself. Every shipment can diffe...

r in size, weight, handling needs, commodity type and regulatory treatment, while aircraft capacity can change at short notice because of baggage loads, weather and fuel planning. A single consignment may need temperature control, security screening, special loading conditions or customs paperwork that differs by destination. In some cases, more than 30 supporting documents are involved, and not all of them are yet accepted electronically in every market.

The industry’s structure adds another layer of difficulty. Airlines, freight forwarders, ground handlers, customs brokers, airports, regulators and sales agents all need access to accurate information, but many still depend on legacy systems and manual workflows. Even where electronic air waybills are widely used, paper documents have not disappeared, partly because of regulatory inconsistency and incompatible technology across borders.

The International Air Transport Association has been trying to push the sector towards a common digital language through ONE Record, its standard for sharing shipment data across the cargo chain. In December 2025, IATA said a survey found that more than 70% of respondents were aware of ONE Record and nearly half considered themselves ready to use it, though many still wanted more pilot projects, practical examples and guidance. IATA has said the framework is intended to give all parties a single view of shipment information, reduce paperwork and improve accuracy, traceability and collaboration.

Adoption is still uneven, but there are signs of momentum. Cathay Cargo has said it became the first carrier to use the protocol in some day-to-day dealings with forwarders ahead of IATA’s target timetable, underlining that the technology is no longer merely theoretical. At the same time, industry discussions at the IATA World Cargo Symposium have made clear that the harder task is not proving the technology works, but persuading the sector to change long-established habits.

That challenge has become more pressing as e-commerce and global trade continue to swell volumes. In an April 2026 article, IATA said digitalisation is no longer optional, arguing that manual processes cannot cope with the speed, complexity and accuracy demanded by modern cargo flows. It said better data sharing supports efficiency, compliance, customer service and sustainability, while also helping operators cope with stricter safety and security rules.

Technology vendors are responding by building tools tailored to freight’s particular needs, from quoting and booking to pricing, forecasting, loading and reporting. Artificial intelligence and machine learning are being used to predict demand and optimise capacity, while connected sensors are improving visibility of temperature, location and condition during transit. Cargo charter, long one of the most manual corners of the market, is also beginning to benefit from new digital platforms.

The direction of travel is clear: air cargo is becoming more connected, more data-driven and more transparent. But unlike passenger travel, where digital tools can be rolled out across a relatively standardised product, freight will keep demanding systems that can cope with complexity, regulation and constant variation. That is why progress is real, but still incomplete.

Source: Noah Wire Services