In global supply chains, the efficiency of air cargo is often measured by aircraft speed and ground-handling equipment throughput.
However, as global trade volumes surge and regulatory environments tighten, the physical movement of goods is increasingly dictated by the digital throughput of the information that precedes it.
As such, a robust digital infrastructure is no longer a secondary support system, but a fundamental framework for you to ensure your high-velocity logistics continue to function.
This article explores the critical roles of these digital systems, which are essential for optimizing the intersection of physical transport and regulatory gatekeeping.
1. Decoupling Physical and Administrative Workflows.
An advanced digital infrastructure has many benefits, one being the ability to separate physical shipment movement from administrative shipment processing.
In a traditional sequential model, physical goods arrive at a terminal before an inspection occurs, and clearance is granted for removal from the terminal.
Modern digital systems permit the parallel processing of data, allowing both data to be transmitted and validated while cargo is being palletized at a warehouse.
This pre-processing capability results in eliminating the administrative bottleneck of the airport tarmac so that when the freight arrives at the terminal, it has already been cleared for its next leg. The transition to parallel operations is crucial for supporting the high-velocity needs of just-in-time manufacturing and global e-commerce.
2. Enhancing Data Integrity and Reducing System Noise.
The basis for logistics compliance is high-volume datasets such as HS Codes, accurate weights and measurements, etc.
When data is manually input, it creates ‘noise’ within a complex system and results in human errors that lead to mechanical stops in the supply chain.
On the other hand, a solid digital infrastructure with API integrations allows data to be pulled directly from ERP and WMS systems, providing a single source of truth with respect to data integrity. Through automated data streams, teams can ensure that the data reported to different global authorities is consistent across all manifests and invoices.
A high-level of data integrity will mitigate the delay associated with cascading errors due to typographical errors or mismatched documentation.
3. Achieving Smooth Security Clearances via Pre-Loading Protocols.
Before an aircraft takes off, the first checkpoint for all shipments is before they are loaded onto the aircraft, due to government regulations that require evaluating security information and performing risk assessments.
For example, in order to ship to the US, airlines must provide 7 fields of information for security using the air cargo advance screening (ACAS) program. This is one of the areas where suppliers like CrimsonLogic air cargo security filing have developed software to help provide an interface between the carrier/freight forwarder and Customs and Border Protection (CBP).
With the use of this cloud-based software, freight forwarders and carriers are able to quickly transmit the required security information to CBP. This system helps to ensure that there are minimal delays in receiving security approvals, which can result in “Do Not Load” orders and impact the entire airline and global supply chain.
4. Scaling for High-Volume Small-Parcel Logistics.
The growth of international e-commerce has transformed the nature of air freight from shipping bulks of large containers (e.g., pallets) to many thousands of individual small parcels. Without an automated digital infrastructure, managing shipping references for this enormous volume would be physically impossible.
Modern infrastructure is capable of processing thousands of individual filing submissions at the same time, using advanced machine learning capabilities to identify shipments that are out of the ordinary or at risk and are delivered without causing slowdowns in the entire flow of data/shipments.
This scale of automation allows for administrative pipes to be maintained wide enough to sustain increases in trade volume as these growing volumes continue to exponentially increase, mitigating a potential situation in which the physical infrastructure of trade will exceed the ability of the administration to adequately document and clear the goods.
Moving Towards the Future of Air Trade
Digital infrastructure is becoming the leading force shaping the evolution of global air freight transportation as the world continues to change.
Historically, the world relied on aircraft capacity, airport operations, and ground handling systems to create efficient air freight transportation. While these pieces are still important, how well logistics systems exchange, process, and manage data is now the real competitive advantage in air freight transportation.
All parties involved in the logistics of air freight logistics now consider themselves part of a global digital marketplace. Timely and precise movement of information throughout this connected ecosystem is as important as the movement of cargo itself.
Airlines, freight forwarders, customs authorities, and logistics platforms use digital communication to facilitate fast and efficient movement of goods among countries by reducing the amount of physical documentation required.
Digital documentation tools like electronic airway bills (eAWB) and electronic customs declarations eliminate a lot of physical documents that slow down the movement of cargo.
When these digital platforms work correctly, they allow for the instantaneous transmission of cargo data among all parties in the supply chain, resulting in reduced delays and reduced risk of human error. When digital platforms work effectively, cargo can be cleared by customs, tracked accurately, and coordinated efficiently.
Real-time data visibility into the location of cargo, storage conditions, and estimated time of arrival associated with moving cargo represents a critical part of modern air freight logistics.
This data provides flexible visibility to vendors, allowing logistics teams to quickly respond to supply chain disruptions from outside influences like weather, operational delays, or customs inspections.
Logistics teams can now proactively respond to supply chain disruptions versus reactively responding to them by rerouting or rescheduling shipments and updating documentation before delays get larger.
For trade to be conducted efficiently, all of these digital platforms must work together. Global supply chains consist of many different companies around the world using different types of systems and following different types of laws and regulations.
The platforms supporting global supply chains must be able to exchange data with one another seamlessly when conducting transactions. Successfully integrating these digital platforms provides for a more integrated and resilient logistics supply chain.
Digital platforms also improve the ability of supply chains to respond to unexpected disruptions, whether they are caused by political, legal, or market forces. Digital platforms provide companies with the means to update documentation, reroute shipments, and keep up with new international laws and regulations more efficiently than traditional paper-based documentation methods.
The physical infrastructure of airports and aircraft represents only one physical component of the complex air freight logistics supply chain.
The intricate web of digital systems behind every shipment that coordinates scheduling, verifies compliance, processes documents, and tracks cargo all work together to ensure modern logistics can operate at the speed required for successful global eCommerce.