The use of digital booking platforms in air cargo is poised for further growth as more players in the freight and logistics industry recognize the benefits of more digitalized cargo processes amid market volatility.

Matt Petot, founder and CEO of air freight booking platform CargoAi, said third-party booking platforms offer increased convenience, efficiency and accessibility for freight forwarders.

Embracing booking platforms also increases visibility throughout the cargo process, gives customers a broader range of options and enables airlines to expand their capacity offerings to a wider network.

“Solutions such as CargoMART by CargoAi provide a centralized platform where operators can easily compare rates, book shipments, track their status, managing their whole logistics processes from one central place,” Petot told Asia Cargo News. “This leads to time and cost savings, improved visibility and streamlined operations.”

When CargoAi started in 2019, emails and phone calls were still the favoured way to get quotes and bookings from freight forwarders to a range of cargo airlines. However, the Covid-19 pandemic accelerated the shift to digital booking as companies, including CargoAi, transitioned to more remote operations.

According to Petot, the rise of online booking platforms for air cargo is long overdue. Since the end of the pandemic, the number of freight forwarder users has doubled to more than 10,000.

Petot expects this trend to accelerate because online booking platforms such as CargoMART offer significant benefits to freight forwarders in simplifying the booking process, increasing operational visibility and efficiency, and enabling data-driven decision-making.

“Airlines are also now knocking at our doors as they see the efficiency gain, but they also need more than ever to fill up their planes. Being visible on our marketplace certainly brings more sales to them,” he said.

As more players in the industry embrace digital solutions, he noted the air freight ecosystem becomes more interconnected, creating a network effect that incentivizes further adoption.

Meanwhile, establishing industry-wide guidelines and best practices is “crucial” as the adoption rate for third-party booking platforms grows, said Petot.

“The industry needs to collaborate to define common data formats, protocols and security standards that ensure interoperability and data integrity across different platforms and systems. Additionally, regulatory bodies can play a role in setting standards and ensuring compliance,” he told Asia Cargo News.

He noted, however, that the industry is already taking steps in this direction, with organizations such as the International Air Transport Association (IATA) actively working on initiatives to establish standards and promote digitalization in air cargo, such as the One Record.

“Collaboration between stakeholders, including cargo operators, technology providers and industry associations, is essential to drive the development and adoption of common standards and ensure a cohesive digital ecosystem,” said Petot.

A survey conducted by booking portal Freightos in 2022 revealed that airlines had been actively expanding their digital booking options in recent years in response to market volatility.

According to the survey last year, 46% of air cargo carriers already allowed instant rate searches for quotes on their websites, up from 10% in 2019. Instant rate search through third-party channels is also provided by 46% of major air carriers, and 42% enable e-booking through these platforms.

In addition, the adoption rate of third-party booking platforms was also higher in air freight than in the ocean, where about 18% offer e-booking on portals.

“In the fragmented air market – compared to the consolidated ocean market and the growing leverage the pandemic has shifted to ocean carriers – airlines are eager for the low-touch access to new customers, new segments and new geographies that platforms represent, even at the cost of making price and service comparisons easier,” said a Freightos representative.

“The volatility of air cargo during the last two years also served as a catalyst for this trend.”

By Charlee C. Delavin
Asia Cargo News | Hong Kong