ACF Podcast: Tales from TIACA – what are the hot topics?
Host and news reporter Charlotte Goldstone interviews a plethora of supply chain industry experts in ...
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BA: WIND OF CHANGEMAERSK: BULLISH CALLXPO: HEDGE FUNDS ENGINEF: CHOPPING BOARDWTC: NEW RECORDZIM: BALANCE SHEET IN CHECKZIM: SURGING TGT: INVENTORY WATCHTGT: BIG EARNINGS MISSWMT: GENERAL MERCHANDISEWMT: AUTOMATIONWMT: MARGINS AND INVENTORYWMT: ECOMM LOSSESWMT: ECOMM BOOMWMT: RESILIENCEWMT: INVENTORY WATCHDSV: GREEN LIGHT
Forwarders are claiming that access to real-time rates and bookings for dangerous goods is getting increasingly problematic.
But the cause is supposedly a combination of several factors and not indicative of unfolding trends.
Matthieu Petot, CEO of digital booking platform CargoAI, said currently 2.5% of its digital bookings were for dangerous goods and temperature-controlled shipments.
He said: “We need to acknowledge that there are certain complexities associated with such shipments, such as more stringent handling and compliance checks, and that is why some airlines may be reluctant to fully digitise these bookings.”
CargoAi claims it is improving transparency, automating compliance checks and providing detailed handling instructions to make the digital booking process “more accessible and reliable” for these specialised shipments.
Radhesh Menon, VP and head of strategy and product management at IBS Software, said the issues might stem from something as basic as a lack of technical capability due to dated systems, which could be fixed with technology transformation.
But it could also be a systemic issue, like the reliance on manual processes, he explained.
“There is still a lot of reluctance to accept first-hand booking information as a reliable source of shipment data for operational validation – for instance with dangerous goods – as well as for regulatory checks, such as embargoes or restrictions, both of which are understandably risky propositions for airlines.”
Mr Menon says these practices will evolve over time, with airline systems becoming smarter in identifying cases with lack of data quality. For example, by creating patterns of behaviour using historical data, which indicate poor data quality or mechanisms to identify and seek additional data input where needed.
The digitisation of air cargo is an ongoing process and digital platforms like Webcargo by Freightos are seeing significant progress, even with challenging categories like dangerous goods. In June, Freightos provided Coyne Airways with access to its Webcargo solution for to real-time rates, booking, interline and payment solutions across the airline’s services in Africa, the Gulf and the Caspian regions – the first carrier to provide dangerous goods booking on the platform.
Meanwhile, handler Hactl in Hong Kong is taking new steps to mitigate the risk of handling lithium batteries in air cargo. These shipments bring significant challenges and risks, primarily due to the batteries’ potential to catch fire or explode if not handled properly.
Hactl CEO Wilson Kwong said shipments containing lithium batteries were an important revenue stream for the air cargo industry, but the potential risks owere well known. He added: “This fact, coupled with the ever-increasing tonnages we are required to handle, means we must take every possible precaution.”
Indeed, this month Hactl opened a dedicated lithium batteries storage zone, equipped with CO2 fire suppression systems and fireproof partitions to segregate the cargo from other shipments. Hactl has already invested in ‘an intelligent cargo thermal detection system’ to provide advance warning of any conditions that may indicate the impending risk of a battery fire.
Mr Kwong added: “The new zone ensures any battery fire can be effectively contained and then quickly extinguished.”
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