Air Cargo
E-commerce Disruption of Air Cargo Is Just Beginning, Report Says

We are only seeing the opening act of the e-commerce effect, according to logistics IT company Unisys.

A new report by the company claims that the global air cargo industry will transform by 2020 through "even smarter" warehouses, as companies across the supply chain rush to capitalize on the e-commerce boom.

One novel outcome of this trend: Airfreight companies will have to team up with their terrestrial partners if they hope to handle the predicted surge in smaller package shipments.

Subject to infrastructure capabilities, market demand for passenger air travel is set to double by 2035 according to IATA, which translates into millions more available tonne kilometers (ATKs) in belly space each year. E-commerce parcels are expected to fill that capacity gap, and now Unisys says that, “these market pressures will bring innovation in three areas in the cargo supply chain: Smart warehouses will become even smarter, drones will finally take off in the cargo supply chain — but inside the warehouse — and new alliances between airlines and global distributors will enable longer-term capacity management.”

Venkatesh Pazhyanur, senior industry director of freight solutions at Unisys, points out that, “much of the underlying technologies are already in use in other sectors. But now, more than ever, cargo operators will be forced to embrace such innovation to be more efficient, agile and proactive in an increasingly competitive and price conscious environment.”

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A new report by the company claims that the global air cargo industry will transform by 2020 through "even smarter" warehouses, as companies across the supply chain rush to capitalize on the e-commerce boom.

One novel outcome of this trend: Airfreight companies will have to team up with their terrestrial partners if they hope to handle the predicted surge in smaller package shipments.

Subject to infrastructure capabilities, market demand for passenger air travel is set to double by 2035 according to IATA, which translates into millions more available tonne kilometers (ATKs) in belly space each year. E-commerce parcels are expected to fill that capacity gap, and now Unisys says that, “these market pressures will bring innovation in three areas in the cargo supply chain: Smart warehouses will become even smarter, drones will finally take off in the cargo supply chain — but inside the warehouse — and new alliances between airlines and global distributors will enable longer-term capacity management.”

Venkatesh Pazhyanur, senior industry director of freight solutions at Unisys, points out that, “much of the underlying technologies are already in use in other sectors. But now, more than ever, cargo operators will be forced to embrace such innovation to be more efficient, agile and proactive in an increasingly competitive and price conscious environment.”

Read Full Article