Internet of Things: Connectivity benefits airfreight tracking, warehousing

The air cargo industry’s increasing adoption of digitalization in the wake of the pandemic is proving how vital the technology is for stakeholders across the supply chain. AI is the buzzword of the day, but Internet of Things (IoT) technology is gaining traction as a solution for cargo tracking and warehouse management. IoT describes a network of devices with sensors, processing ability and software that allows them to exchange data and coordinate operations. “Companies want comprehensive visibility from the start to the finish of their supply chain processes,” Scott Sangster , general manager at Canadian technology company Descartes Systems Group , told Air Cargo Next . “IoT allows air cargo stakeholders to improve cargo tracking and provide the enhanced level of real-time supply chain visibility required by companies shipping goods via air.” Descartes launched a partnership with Etihad Cargo last summer for enhanced air shipment visibility via IoT Bluetooth tracking for unit load devices (ULD). “By integrating IoT devices, Etihad Cargo is evaluating the use of real-time data monitoring and reporting, providing customers with greater assurance and transparency about the handling and condition of their shipments,” Thomas Schurmann , head of cargo operations and delivery at Etihad Cargo, told Air Cargo Next . “This integration has helped us to optimize existing processes and improve overall efficiency and customer satisfaction.” “In warehouse management and shipment tracking, IoT is not directly replacing any existing technology but rather supplementing the current infrastructure and manual processes.” — Thomas Schurmann, head of cargo operations and delivery at Etihad Cargo IoT in air cargo uses multiple devices to collect and send data about temperature, location, tilt and more to a server via connectivity options such as 3G, Wi-Fi and Bluetooth, according to Schurmann. Track and trace Descartes and Etihad Cargo are using IoT to track ULDs , gaining real-time data from the transport and ambient conditions of the cargo while in transit, according to Descartes. “IoT helps to transform the way information is gathered and shared in air cargo tracking,” Sangster said. “With the evolution of ULD tracking and Bluetooth Low Energy tracking, air cargo tracking moves beyond static system updates to real-time tracking of assets in the field: IoT is not just telling you what’s happened; it’s able to record it live in the field as it’s going on.” Bluetooth Low Energy (Bluetooth LE) is a wireless computer network that connects electronic devices in a workspace. Bluetooth LE is intended to reduce power consumption and cost while providing a personal area network, according to Bluetooth Special Interest Group , a coalition of companies that works to advance the technology. [caption id="attachment_57143566" align="alignright" width="300"] (Photo/Canva)[/caption] “The use of Bluetooth Low Energy for ULD tracking — and for monitoring the condition of air cargo shipments — provides air carriers and ground handling agents with proven, cost-effective technology that is approved for travel on aircraft,” Sangster said. By using IoT devices, Etihad Cargo has reduced the number of lost ULDs and has simplified ground operations, according to Schurmann. “The implementation process involved deploying sensors across our network to track ULD locations in real time, thereby reducing daily manual stock-taking efforts and ensuring adequate ULD availability for cargo transport,” he said. “Challenges included IoT devices being damaged by forklifts due to their size, which was mitigated by Descartes providing smaller, more robust devices placed in safer locations.” Implementing IoT in ground operations can, according to Sangster: Help carriers reduce cargo and equipment losses; Simplify ULD processing and ULD and pallet stock counts; and Allow GHA to monitor and adjust ambient conditions, such as temperature , movement and humidity. “IoT technology can also be used in air cargo environments to track individual shipments for location and conditions of the shipments. This allows the air carriers to not only answer the question of ‘Where is my stuff?’ but also ‘How is my stuff?’” — Scott Sangster, general manager at Descartes Systems Group [caption id="attachment_57143571" align="alignright" width="300"] (Photo/Canva)[/caption] Air France KLM Martinair Cargo (AFKLMP) has also embraced IoT in its ULDs. The carrier announced in January that it will use Swiss cold chain container developer SkyCell ’s IoT tracking technology, to provide real-time visibility on SkyCell’s SkyMind platform. SkyMind is a supply chain operating system that supports temperature-controlled shipping and reduces product loss by combining operational and simulation data to identify high-risk lanes that lead to product loss, then using intelligent lane planning and temperature simulations to create probable scenarios, according to SkyCell. “Real-time ULD tracking will enable us to address the issue of ULD losses, whether by ground handling partners or our valued customers, and will ensure seamless movement of cargo,” Adriaan den Heijer , executive vice president of Air France-KLM Cargo and managing director of Martinair , said in a Jan. 9 release from AFKLMP. Warehouse management IoT is invaluable in warehouse management for enhanced monitoring and security , especially for high-value shipments and those requiring precise temperatures and environmental controls. “In a warehouse setting, IoT devices are typically attached to cargo or their pallets, with additional sensors placed around the warehouse to track and gather data from these devices,” Schurmann said. “This setup helps Etihad Cargo monitor crucial factors like whether shipments are stored correctly, for example in a cool room, and tracking their movement within the facility to ensure they are handled according to the scheduled requirements, enhancing both security and operational efficiency.” The company is exploring the use of the tech specifically for pharma, as well as “to track high-value items, such as mobile phones, to prevent tampering and theft,” he added. To learn more about using IoT for shipping pharmaceuticals, attend Air Cargo Next’s free webinar, “Air Cargo and Pharma: Using Technology to Save Lives,” on Tuesday, June 18, at 11 a.m. ET. Click here to register. Other stakeholders are also exploring IoT in warehousing. Cainiao , the logistics arm of Alibaba , has integrated IoT at its hub at Liege Airport (LGG). Working with Saudia Cargo and Worldwide Flight Services , Cainiao is using IoT to integrate automated guided vehicles, advanced personal digital assistants, digital dashboards and live tracking into a single system at the hub. “IoT technologies are already deployed in the warehouse to enhance traceability and efficiency,” a Saudia Cargo spokesperson previously told Air Cargo Next . “For example, the warehouse is equipped with radio frequency identification detectors so the cargo will be identified automatically when going into the warehouse, to further digitalize the flow of goods.” Expanding the technology IoT technology is continuously developing and is most effective when integrated with other technologies and processes, Bobby Criss , head of data and analytics at Johnson & Johnson , said during a panel at LogiPharma 2023 in Boston in October. “When you take something like IoT and you start applying machine learning, start applying different exponential technologies like robotics and 3D printing, and you converge these technologies — that’s where you see incredible transformation.” — Bobby Criss, head of data and analytics at Johnson & Johnson He stressed that multiple types of technology — hardware and software — should be used together to deliver the best outcome. “Oftentimes, people get confused when they use the term ‘track and trace,’” he said. “Some people think it means serialization and some people think it means IoT sensors, high-value propositions.” Overlaying serialization data allows a user to know which sensor is tracking each cargo unit. Therefore, combining serialization and IoT has “a promising future” in the air cargo industry, Criss said. [caption id="attachment_57143567" align="alignright" width="300"] (Photo/Canva)[/caption] Working to further the capabilities of IoT, risk management solutions provider Overhaul last year launched enhancements to its technology to combat cargo theft. The technology, IoT Assess and Deploy, offers customers greater visibility and instant alerts with a bi-directional approach, Karin Stevens , executive vice president at Overhaul, previously told Air Cargo Next . “That means that we can control the device from within our platform, which is a differentiator for Overhaul, specifically because a number of providers also have their own platforms,” she said. “But it’s giving us the ability to kind of bi-directionally talk to the device, as opposed to just being another data point that comes in.” IoT technology can also be used to resolve visibility challenges, Zeid Houssami , former global head of airfreight at Flexport , said during the Air Cargo Next webinar “What’s new in digital cargo systems.” “You have different levels of visibility with different airlines,” said Houssami, now vice president of Flexport’s West region. “Some have robust APIs, and some don’t even have websites that get updated timely. … The lack of standardization in the industry poses some challenges, and IoT can help us solve for those gaps.” Challenges to implementation The benefits to IoT implementation also come with challenges. “The high cost of IoT devices limits their use primarily to high-value shipments, such as pharmaceuticals and valuable goods, making widespread adoption financially unviable for all types of cargo,” Etihad Cargo’s Schurmann said. “Additionally, each IoT device must be certified and approved, not only by the carrier for compatibility with specific aircraft, but also by other stakeholders like civil aviation authorities , ground handling agents and customs.” [caption id="attachment_57143570" align="alignright" width="300"] (Photo/Canva)[/caption] Integrating IoT into operations can cost upward of $50,000, according to analysts. The size and complexity of the operations impact the cost as well. Larger IoT projects can cost more than $1 million. “There are operational challenges too, such as the need for declaring these devices during shipment booking and acceptance, and the requirement for additional infrastructure, like readers at all airports, to collect data from the IoT devices as they travel,” he said. “Technologically, there are challenges related to turning off the devices during flights, ensuring sufficient battery life and selecting the appropriate method for data transmission, such as 3G, Wi-Fi or Bluetooth.” Descartes’ Sangster also sees local network coverage as a key challenge, as an insufficient network can delay data transmission and affect accuracy. Descartes is working to improve the distance over which the readers and tags can communicate by using solar readers in areas without electricity and by deploying mesh networks, he said. A mesh network is a group of connectivity devices that work as a single network. Another challenge is education. The technology exists but implementation is being delayed partly by questions of how to use IoT effectively, Ashok Rajan , senior vice president and head of cargo and logistics business at IBS Software , said during a previous Air Cargo Next webinar. “I think that IoT is sort of purpose-built most for this industry. The Internet of Things will throw you out gigabytes of information — how do you make that make sense? ... Use this information for control.” — Ashok Rajan, senior vice president and head of cargo and logistics business at IBS Software Future of IoT in air cargo “IoT has made a lot of progress in the last 10 years or so,” Flexport’s Houssami said. “Overall, though, it’s still being used as more of a niche solution. ... Part of it is probably cost-driven, probably some of it is partly compliance-driven. But I see a world in the future where every package and logistics [process] is tracked with a real-time location.” Airforwarders Association Executive Director Brandon Fried also sees IoT as a vital part of the industry’s future and encourages its full-scale adoption. [caption id="attachment_57143572" align="alignright" width="300"] (Photo/Canva)[/caption] “Embrace and invest in advanced technologies such as blockchain, Internet of Things and AI to enhance operational efficiency,” Fried previously told Air Cargo Next . “Leveraging these technologies can streamline processes, reduce delays and improve overall supply chain visibility.” IoT has even more applications in this industry than tracking and warehousing, according to Schurmann. “IoT can significantly enhance other areas of the supply chain by providing real-time data integration into systems like supply chain management platforms and customer service applications,” he said. “IoT has the potential to provide real-time data on the milestone progress of the shipment. This would allow carriers to monitor shipments to see if they are still on track. Any delayed shipments could be flagged to enable carriers to proactively inform the customer and try to recover the time on the delay. These benefits would provide a better service proposition to our customers.” Register here for Air Cargo Next ’s upcoming webinar, “Air Cargo and Pharma: Using Technology to Save Lives,” on Tuesday, June 18, at 11 a.m. ET.

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