Consultant Insight: China Southern Air Logistics partners with WebCargo as online platforms grow

China Southern Airlines' cargo subsidiary, China Southern Air Logistics, is the first Chinese air cargo provider to partner with Freightos' WebCargo online platform to utilize real-time rates, capacity and bookings for Chinese imports. "Digital transformation has become key to staying ahead,” Changqing Tao, executive vice president of China Southern Air Logistics, said in a statement. “Aiming to become a competitive global integrated logistics provider, China Southern Air Logistics will devote great efforts to enhancing our digital capabilities to provide quality service." China Southern Air Logistics was established in 2018 and operates a fleet of two Boeing B747-400Fs and twelve B777-200Fs. Shanghai (PVG) and Guangzhou (CAN) are its major hubs, with a freighter network that covers 10 domestic and international stations, including Los Angeles, Chicago, Amsterdam and Frankfurt. According to WebCargo, at least 3,500 freight forwarders utilize its services, and more than 30 airlines including Lufthansa, American Airlines, Air France-KLM and Emirates SkyCargo, list capacity on the platform. Rapid adoption of online platforms [caption id="attachment_68221" align="alignright" width="364"] Cathy Roberson, Cargo Facts Consulting senior consultant and Air Cargo World columnist[/caption] As China Southern Air Logistics dips its toe into online platforms, other airlines and forwarders are embracing them. The volatility of supply chains over the past two years served as a catalyst for many providers, carriers and shippers to turn to online platforms, particularly in the face of scarce capacity and high rates. Air cargo carriers live on WebCargo represent more than 50% of global air cargo capacity, with most coming online during the pandemic, according to Freightos. Across all platforms, more than 38% of air capacity is now digitized, a 90% increase compared with just a year ago, according to Freightos’ digital connectivity report for the year. The Freightos survey also found that 46% of top air carriers provide instant rate search through third-party platforms, 42% of air carriers enable ebooking and another 42% provide shipment tracking through platforms. Other online air cargo platforms include cargo.one, whose customers include Airlog Group, Hellmann and Skyline Express, as well as CargoAi, whose customers include DSV, Kuehne+Nagel and Lufthansa Cargo. Freightos' survey also notes that many of the biggest cargo carriers have developed sophisticated in-house portals while partnering with third-party platforms as part of an omnichannel strategy. One such carrier is Lufthansa Air Cargo, which in 2020 introduced its online booking portal. The carrier also partners with WebCargo and CargoAi to use their online platforms. “Most of our customers already book online. With the new eBooking, we are improving the usability for our customers,” Dorothea von Boxberg, Lufthansa Cargo’s chief commercial officer, said in a statement. “Access to our capacity with bookable prices is now even easier for our customers 24/7. Our sales department will continue to focus on the individual needs of our customers.” Others, such as Cathay Pacific Cargo, have yet to partner with a third-party online platform. Instead, the carrier launched its own online platform, Click & Ship, across its network in 2021. Online air cargo platforms continue to be embraced by the market much like other transportation modes that offer them, including trucking and ocean freight, and 3PLs that provide end-to-end supply chain services through a single online platform. For shippers, the options are plentiful, including utilizing transportation management systems (TMS) that may connect to various online platforms.

Consultant Insight: China Southern Air Logistics partners with WebCargo as online platforms grow

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