ELEVATE panelists discuss rising importance of innovation in logistics

MIAMI – Air Cargo World kicked off the inaugural session of its very first ELEVATE Airfreight Conference this week with a panel discussion titled “The Rise of Air Cargo Innovation.” Panelists agreed the industry is nearing an inflection point, and the flatness of the air cargo industry is finally starting to gain dimensionality. No longer will supply chain events continue in isolation from one another, instead increased data exchanges, and collaboration amongst stakeholders will open up many avenues for process improvements. The emergence of UAVs are likely to be another major characteristic of future air cargo transport as regulations and technology begin to align with commercial applications.

Dirk Schusdziara, senior vice president, cargo, at Fraport AG, said that as one of the world’s largest cargo airports “innovation is much more important than it was in the past, it’s part of our daily business. It’s very important to initiate the change to reach competitive advantage.” As an entity that serves as an ecosystem for a wide variety of supply-chain stakeholders, Schusdziara said Fraport Airports were re-imagining both technical and organizational processes to help make air cargo more competitive with other modes of transportation.

One such development has been Frankfurt Airport’s “AIR@ Link” cargo community system, which facilitates seamless data capture and exchange among stakeholders. A recent addition to the platform, was a license-plate recognition tool that can monitor incoming truck arrivals, link them to deliveries, and notify relevant stakeholders instantaneously. The success of such a system relies on not only the openness and willingness of stakeholder to participate and share data, but also the host organization’s (in this case, an airport) cohesive understanding of the operational processes of all stakeholders involved. “Nothing works if the organization does not follow,” he added.

Moving forward, Schusdziara and fellow panelist, Joe Napoli, chief of staff for Miami International Airport, agreed that API’s where likely well-off in the future for airports. But in the meantime, community platforms will continue to play a significant role in facilitating data exchanges and adding efficiencies to the supply-chain.  Such platforms Schusdziara said, are just starting to bring the shipper into the conversation.

Even though both airports longed for a paperless world, they reiterated that there were indeed factors beyond their control inhibiting their ability to make data exchanges purely electronic on all fronts. Schusdziara gave the example of customs clearance documents which in many countries still require original copies. He questioned, “how can we get certified digital copies to satisfy customs?”

Outside the airport, there are a host of other innovations in the works. As Air Cargo World has covered extensively in the past, UAVs are vying for their entry into the market. Much like the requirement for original customs documents, the regulatory environment has indeed slowed the introduction of drones into the commercial environment. Svilen Rangelov, co-founder and CEO of drone-maker Dronamics, said that, although he has been discouraged that his prototype can not yet be flown anywhere, even if successfully built, his company is still working to “first win the war with physics, and then launch the war with the legal side.”

Earlier this year the U.S. Federal Aviation Administration relaxed its rules governing the operation of smaller UAVs. Many active players in UAVs like UPS view the “part 107” modifications as a significant step in the right direction for smaller aircraft, but agree that much more will need to be done. Dronomics’ “Black Swan” UAV will be roughly the same size as a small delivery van at 50 feet, a payload of 350 kilograms and a range of 2,500 kilometers. The group aims to test its first prototype within six to twelve months in a former military airfield in Bulgaria. “This flight will tell us how far off we are from a technologically viable product,” added Rangelov. (See video about Rangelov’s innovative vision here.)