​In the previous part of this blog post series, we had considered the symbiotic relationship between air cargo and e-commerce. A key observation was that instead of pushing for full consolidation, the more practical solution should involve a significant effort invested in creating highly customized cargo products that enable e-commerce companies to improve the value proposition they provide to their customers. The first focus area had also been explored. Here we continue with the rest of the focus areas which will help air cargo to align better with e-commerce players and their requiremen...

The phrase "brick and mortar" is a retronym to imply a physical entity in a landscape that is slowly being taken over by its digital variant – the most prominent example being a retail store in a world that is embracing e-commerce. At the risk of oversimplification, the electronic model is favourable for sellers who can cut off intermediaries as well as save investment in showroom space and other sales display related costs, while the end customers appreciate the fact that these savings are typically passed on to them through slashed prices! The key lies in the logistics of getting the purchas...

Air cargo is a complex business involving a massive supply chain that stretches all across the globe. The ecosystem is divided in a very granular manner, with the airline itself handling a very small portion of the cargo movement and the rest being handled by partners which are far from seamless in their connection to the chain. Between the shipper and the receiver, every package passes through several hands with varying degrees of manual and automated operation. In the absence of full digitization, the excessive number of non-standardized intermediaries in the network form weak links on the c...

Despite registering a growth of over 90% over the past decade as per World Bank statistics, certain structural deficiencies - slim margins, low yields and low predictability - have held back the air cargo industry from fully capitalizing on the heavy demand for freight movement. High impact, sustainable solutions are essential and the signals are strong for a digital future. The IBS Cargo Forum, which recently concluded in Abu Dhabi, focused on the digital evolution of the air cargo industry landscape, and how the iCargo platform stands to generate tremendous value for the astute customer. &nb...

​ In my previous blog post Game Changers: A reality check on air cargo today - Part I , we explored the anomalous capacity paradox as the core reason behind the decreased yield in the cargo industry. As profitability dips, the most viable solution for the sustenance of the industry begins with increasing productivity of output and must proceed through intense customization of product. Technology, or more specifically digitization, is not a mere enabler here but the very foundation on which the industry must be rebuilt. IATA proposed to achieve this in 2016 through a portfolio of transformation...