Growing e-commerce volumes and the associated need for faster door-to-door transit times are helping to drive the adoption of digital solutions in air cargo.
IATA estimates that e-commerce now represents around 20% of total air cargo volumes, and is expected to grow rapidly.
Figures from eMarketer show that in 2023 global e-commerce sales reached $5.8trn. This is expected to reach $6.9trn this year and as much as $8trn by 2027.
To help create efficiencies in air cargo information sharing and ultimately speed up the processing of cargo, IATA has developed the ONE Record data-sharing platform, which moves away from peer-to-peer messaging to a centralised system.
“To deliver on speed, digitalisation is one of our main priorities and it is absolutely crucial for us to do so,” says IATA global head of cargo Brendan Sullivan.
“One of the things that we need to do is move away from the current legacy messaging standard, which is using technology that is up to 50 years old, and into the data sharing approach, which we call the ONE Record standard.
“ONE Record uses modern APIs and delivers a much more efficient way of transacting.”
The platform provides a common data model, which parties across the supply chain can integrate into their systems to improve communication.
Having a standard for all businesses to share data helps reduce misunderstandings because all parties are using the same definitions, IATA says.
The centralised data storage element of the platform should also help improve visibility and transparency, while reducing the likelihood of mistypes and the need to re-key information.
To help develop and test the platform, IATA has run a series of pilot programmes with more than 200 companies involved and has held several hackathon events.
Governmental authorities, such as customs and security, have also been involved, and IATA has engaged with the EU, UN, US and China among a range of governments.
One example of ONE Record in action has been a proof of concept running with Cathay Cargo, the Airport Authority of Hong Kong and Yusen Logistics on barge-to-air shipments in the Greater Bay Area.
This project sees shipments moved initially by road, then put on a barge at the Dongguan Logistics Park to be transferred to the airport and then put on an aircraft to be transported to locations such as Bangkok, Manila and Tokyo.
Using ONE Record means that shipment data across the various transport modes does not need to be re-keyed each time, is available to all the supply chain parties involved and does not lose any specificity, as it would have when being transmitted across messaging systems. The project improved visibility and transparency along the multimodal journey.
Shipment tracking
Another example of ONE Record being utilised came when Dimerco, Cathay Cargo and Global Logistics Systems Hong Kong partnered to transport semiconductor thermal paste and monitor the condition of the shipment using a cargo tracking device and real-time data sharing via the ONE Record API.
Dimerco was able to access and monitor data including shipment milestones and conditions – such as GPS location, temperature and humidity – in near real time.
In another example, data loggers were used to provide real-time updates on vaccine transportation via ONE Record, ensuring that the condition of transport along the cargo journey complied with requirements.
The shipment information could be viewed by the forwarder, pharma company and ground handler involved in the project.
Meanwhile, at last year’s World Cargo Symposium, IATA launched a Digitalization Leadership Charter with Cathay Cargo, CHAMP Cargosystems, Global Logistics System, IAG Cargo, IBS Software, LATAM Cargo and Lufthansa Cargo as signatories.
The charter was developed in consultation with IATA’s Cargo Advisory Council Members, airlines and the wider air cargo community.
The Digital Leadership guiding principles include commitments to develop a unified and collaborative digital strategy that champions interoperability and the use of global standards across the entire supply chain.
It also calls for enhanced organisational resilience through the building of robust digital infrastructure and implementing strategies to safeguard against cybersecurity risks while ensuring the responsible use of generative artificial intelligence.
