Navigating the Digital Transformation Challenges in Air Cargo

Digital Transformation in Air Cargo: A Slow Journey

Speed defines the air cargo industry, yet the pace of digitalization is reminiscent of a sluggish tortoise. At the TIACA Executive Summit 2025 in Hong Kong, industry insiders laid bare the uncomfortable reality: the air cargo sector grapples with outdated practices, fragmented systems, and an ingrained reluctance to embrace change.

The Panel Discussion: Challenges Laid Bare

Moderated by Kai Domscheit, CEO at CHI Deutschland Cargo Handling GmbH, the panel included notable personalities such as:

• Andress Lam, Head of Cargo Digital at Cathay Cargo
• Moritz Claussen, Co-Founder and Managing Director at cargo.one
• David Linford, VP Sales & Account Management at CHAMP Cargosystems
• Simon Ng, CEO of Global Logistics System (HK) Co., Ltd.

Instead of reveling in high-tech achievements, the panel painted a picture of stagnation and resistance that plagues the industry, echoing the sentiments of many air cargo professionals.

The Reality Check: Promise vs. Reality

Despite repeated calls for reform over the years, air cargo remains entrenched in antiquated processes. David Linford’s straightforward assessment hit home: “We’re still very document-driven with too many hands in the mix.” The crux of digitalization isn’t merely about slapping a digital label on a paper process; it requires a substantial overhaul of operations.

Moritz Claussen added accentuating concern: “Digitalization has often been confused with digital tools. Just because you have a PDF or Excel file, doesn’t mean you’re digital.” It’s a classic case of missing the forest for the trees in terms of true transformation.

Integration Over Tools

For Andress Lam, the stumbling block is integration rather than a shortage of tools. “Every airline has its unique digital journey, but the real need is for systems to communicate effectively with one another,” he remarked.

Simon Ng’s candid criticism of industry fragmentation emphasized the need for unified processes. “Without this, every partner merely builds their own silo,” he warned, once again highlighting the notion that resistance is often rooted in organizational culture, not merely tech.

Decision-Making Dilemma

Claussen bluntly stated, “Air cargo isn’t facing a technology problem; it’s a decision-making problem.” Misalignment within companies often leads to digital initiatives faltering before they can take off. “We claim to seek digital progress, yet we still request Excel files,” he remarked with dry humor.

Even initiatives spawned from good intentions can falter without proper governance. Linford noted, “You need standards and commitment; otherwise you’re likely to end up with multiple platforms that perform poorly.”

Unlocking Interoperability: The Key to Forward Motion

As the panel transitioned to potential solutions, the focus shifted towards interoperability. Claussen issued a stark warning: “Failing to establish interoperable systems will leave us behind.” He encouraged innovation beyond mere platforms and APIs, calling for a shared vision and aligning commercial interests.

“With collaboration, we can create meaningful strides,” added Lam, reiterating the necessity for a collective approach within the air cargo community.

Navigating Data Ownership Paradox

A central challenge lies in the battle for data control. Linford expressed concerns that a reluctance to share data stems from fears of losing control. He argued against the self-defeating nature of data hoarding: “When everyone guards their data, we all lose.” Claussen strongly echoed this sentiment.

Emphasizing the importance of trust in data transparency, Lam emphasized, “We must develop digital trust frameworks, which extend beyond technology to include sound governance.” Simon Ng pointed to the industry’s immaturity in terms of trust, noting that many areas still struggle with data quality.

Leadership: The Backbone of Digital Change

Ultimately, the panel conveyed a unified message: actualizing digital change is fundamentally a leadership challenge rather than merely a technological one. “It’s not about apps or platforms,” Claussen concluded. “Real transformation requires a reevaluation of how we operate, not just the tools we use.”

Alles samengevat

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