By Emily Newton 
In the air cargo industry, achieving high-end visibility within logistics is a top priority. Global supply chains are expanding while customer demands for reliability are rising, so logistics providers must find ways to manage deliveries seamlessly. One powerful solution for optimizing shipments in air cargo is track and trace technology. These systems are revolutionizing cargo moving across borders, ensuring greater efficiency and dependability.
Increasing visibility in air cargo requires tracking across each journey segment, from the initial dispatch to the final destination. Each phase presents unique tracking requirements. Integrating technologies across these stages enables logistics providers to create a seamless flow, but data interoperability and regulatory compliance remain key factors.
In the first mile, shipments are tagged with identification technologies to initiate the cargo’s digital trail. Effective labeling and tracking at this stage are critical, as initial data capture is foundational for accurate tracking downstream.
According to research, companies that leverage RFID tracking in early logistics stages can reduce inventory inaccuracies by providing real-time visibility. However, integration gaps between local warehouses, freight handlers, and airline systems often pose a greater challenge, leading to delays and data silos.
Companies experience a supply chain disruption for approximately one to two months every 3.7 years, as data management systems vary widely among stakeholders. Such delays can equal 30% of a year’s earnings before interest, taxes, depreciation and amortization (EBITDA).
The mid-mile stage covers the journey from the departure airport to customs checkpoints, where air cargo encounters additional tracking and compliance challenges. This segment of the logistics journey often includes stops at various hubs, where cargo may switch between carriers or undergo customs inspections. At these junctures, the risk of delays or tracking inconsistencies increases as data must be accurately captured and transferred across systems.
For example, cargo shipments can encounter mid-transit delays due to documentation or handling inconsistencies. Traditionally, data silos have hindered the sharing of tracking data efficiently. However, collaborative systems via a mesh network offer complete coverage of these transfers and provide near-real-time updates to all parties involved.
A mesh network consists of interconnected nodes that communicate across all stages. Unlike traditional point-to-point networks, a mesh network can transmit data through multiple nodes, maintaining real-time visibility even in remote hubs or during flight. This setup lets logistics providers detect disruptions immediately and take proactive steps to ensure smooth transitions.
The last mile is the final transfer from the arrival airport to the recipient’s location, a phase where delivery accuracy and timing are crucial. In this phase, GPS-enabled tracking devices are essential. They provide live updates on cargo location, estimated delivery time, and any route adjustments.
Despite significant advancements in GPS accuracy and route optimization, last-mile logistics still present challenges. Data from the World Economic Forum suggest that last-mile logistics will incur 11 extra minutes of commute time due to a 36% increase in delivery vehicles on the road because there is a 78% demand growth for last-mile deliveries. As last-mile delivery increases, a need for precise tracking solutions will be more valuable than ever at this stage.
Another challenge within global logistics is regulatory compliance, which adds complexity to cross-border tracking. Varying standards and requirements among customs authorities create challenges in maintaining the smooth movement of goods.
For instance, the Strengthened Opioid Misuse Prevention (STOP) Act in the U.S. prevents entry of shipments with unidentified data. With initiatives like these, the last mile has a dampening effect by delaying the shipping process or restricting freight transfer.
Track and trace systems enhance overall supply chain performance in air cargo logistics. These tools address specific challenges at each stage of cargo movement, enabling real-time tracking, data security and predictive insights. Below are the latest innovations reshaping air cargo track and trace capabilities:
As track and trace technology advances, its applications in air cargo logistics have evolved beyond basic location tracking. Today, these systems come with sophisticated capabilities that offer precise control over cargo operations, enabling logistics providers to operate with greater agility.
Condition monitoring is vital for shipments sensitive to environmental changes, such as pharmaceuticals and high-value electronics. Track and trace systems continuously monitor parameters like temperature, humidity, shock and light exposure. This data allows early detection of risks, preventing damage to sensitive cargo within certain conditions.
In the air cargo industry, monitoring is especially valuable in cold chain logistics since fluctuations in temperature can compromise product quality. However, real-time alerts on the conditions will reduce spoilage and ensure companies meet regulatory requirements.
Air Carrier Integration systems and ML algorithms are essential for adjusting delivery routes based on conditions like traffic patterns or capacity limitations. Businesses can use these innovations to reroute shipments and ensure on-time delivery schedules.
Air cargo makes up 35% of world trade, so route optimization is essential for many companies to reduce costs and maximize efficiency. Taking such actions is critical to customer satisfaction and supply chain resiliency.
Air cargo providers need track and trace systems to collect data on the location and status of their assets like containers, pallets and specialized equipment. RFID and GPS allow for live inventory updates, helping logistics personnel monitor asset utilization and streamline workflows.
With a greater handle on tracking, teams minimize losses and prevent misallocation. Improved inventory accuracy also enables logistics providers to reduce excess stock and lower storage costs. As such, they enhance supply chain responsiveness by supporting leaner, more efficient operations.
Track and trace systems are transforming air cargo logistics by increasing visibility into every delivery stage. Therefore, they will play an even more critical role in meeting global demands as the industry evolves.
For industry professionals, investing in these advancements is a key strategy for building a customer-centric supply chain. While they strengthen the foundation of air cargo today, they will also prepare businesses for a future where real-time insights define their competitive advantage.
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