Revolutionizing Air Cargo: The Importance of Digitizing Unit Load Devices

The global air freight market is expanding at a rapid pace, as reported by the International Air Transport Association (IATA). The growth of the market was driven by the pandemic, initially fueled by the need to ship protective personal equipment and medications, and later sustained by a surge in ecommerce. As the air cargo industry continues to grow, the demand for unit load devices (ULDs) - the pallets or containers that hold air freight - is also projected to increase. According to Fortune Business Insights, annual spending on ULDs is forecasted to reach $2.67 billion by 2027, up from $1.98 billion in 2020.

There are approximately one million ULDs in existence, each with a unique identification code that contains information like waybill, consignment notes, and voyage number, allowing for tracking of each shipment. However, most carriers and cargo operators only partially digitize ULDs, and tracking typically stops once the cargo reaches its departure point. This leads to a lack of information in the global supply chain and raises security concerns. The IATA highlights that ULDs are the only aircraft parts that leave the control of the airline and can impact flight safety.

To address these issues and bring greater reliability and security to the air cargo industry, there is a need for further digitization of ULDs. However, the implementation of digital solutions like radio frequency identification (RFID), global system for mobile communication (GSM), and GPS has been hindered by challenges such as the need for costly infrastructure and dependence on batteries.

Wireless sensors attached to ULDs can provide real-time information about their movement and also help airlines share this information with their partners. This can eventually automate demurrage processes and enhance asset utilization, leading to commercial benefits for air carriers. The information captured can go beyond location to include factors like temperature and humidity, which are critical for goods that cannot be subjected to extreme heat or cold. This tracking can mitigate issues like flight delays and cancellations, misrouted cargo, and lost shipments.

Artificial intelligence (AI) offers immense potential in the ULD industry. AI can be used to predict flight departure times, optimize load operations, and enhance inventory management. With the use of data in the cloud, AI can drive more accurate tracking of ULDs and bring greater transparency to the air cargo supply chain, enabling products to be delivered faster and more efficiently.

In conclusion, the digitization of ULDs is crucial to ensuring the reliability and security of the global air cargo industry. With the use of wireless sensors and artificial intelligence, air carriers can improve asset utilization, rationalize costs, and bring greater transparency and efficiency to the air cargo supply chain. Keywords: air freight market, unit load devices, digitization, real-time tracking, wireless sensors, artificial intelligence, global air cargo industry, supply chain, reliability, security, efficiency, asset utilization, cost reduction