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Your guide to the latest developments in the international airfreight industry
FROM PISTONS TO AI: HOW TECHNOLOGY AND SECURITY SHAPE AIRFREIGHT
TSA AND ACI EUROPE: SECURITY SCREENING TECHNOLOGY THROUGHOUT EUROPE
WIREMIND CARGO : WHEN TECHNOLOGY MEETS SUSTAINABILITY Nathanaël de Tarade, CEO of Wiremind Cargo
July 2022
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FROM PISTONS TO AI: HOW TECHNOLOGY AND SECURITY SHAPE AIRFREIGHT
Airfreight is an industry that cannot operate successfully without technology. Whether it was the latest piston engine technologies of the 1920s and 1930s that powered the first cargo carrying flights to the AI algorithm that directs individual consignments through the modern airfreight supply chain, those who work to move cargo by air have relied on cutting edge technology. The first cargo was bolts of cloth; now, tonnes of flowers will make a single shipment on the main deck of a freighter aircraft. Technology in airfreight touches on more than just the aircraft used to fly the cargo. From the moment the consignor hands over the cargo to the freight forwarder, technology will come into play. Track and trace technology can capture the data on the shipment from the off. The consignment will be transported to a warehouse prior to the flight. Nowadays there is every chance that there will be minimal human intervention from this point. High stack storage served by robots will load ULDs that can be taken to the aircraft with little human control. Once arrived at the destination airport, the cargo will be unloaded and stored again in an unmanned warehouse equipped with RFID sensors. The paperwork associated with the goods will now also likely be digitalised, even to the extent the air waybill could be electronic. While much technology is about improving existing areas of airfreight operation, some of it is devoted to future areas of the airfreight supply chain. Unmanned aerial vehicles (UAV), commonly known as drones, are one area of future technology that is up and coming. Cargo drones will require their own technology in terms of loading, maintenance and control which has yet to be developed. One key aspect of technological advance in the airfreight industry has to be the issue of de-staffing. Every sparkling warehouse built from now on will likely use robot and drone technology to handle the cargo. These individuals who are now redundant will often leave the industry. A second danger is that the greater reliance on technology is creating a risk. Every time you have had to turn your PC off and on to restart, just think of what is required if a 100,000 sq m warehouse IT system has to be turned off and on.
A secure mode The general nature of what is flown by air has marked effects on the issue
of security in the airfreight supply chain. Goods consigned to airfreight are generally small and very valuable. This means they are very attractive to theft. Throughout airfreight logistics, cargoes must be protected from external dangers. Theft, hi-jacking and diversion of cargo are a constant worry that security must alleviate. Internal dangers also exist so security can sometimes protect the cargo from inside staff. Civil aviation has been a target for terrorist groups for decades. Among the possible ways of attacking this mode of transport, the introduction of an explosive device in an air cargo shipment, is a preferred one. This has been evidenced by past incidents such as the sabotage attempts carried out when improvised explosive devices were found hidden in the ink cartridges carried by a cargo aircraft. International Civil Aviation Organization (ICAO) designated 2021 as the Year of Security Culture (YOSC), and this could not have been more timely when it comes to air cargo. Security measures applied to freight transported by air rely on a security culture, where they find solid foundation. Secure supply chains are based on security controls being applied and maintained from the moment a shipment is identified as air cargo until it is offloaded from the last aircraft transporting it. The human element is crucial across this journey. ICAO went on to describe how items are often identified as air cargo very early on, sometimes from the time of manufacture. “As such, security controls are applied from that moment as part of a secure supply chain. Employees involved in manufacturing, packaging, and handling processes play a key role not only in ensuring that no prohibited articles and substances are concealed inside those items, but also in challenging anyone who may be unauthorised to access them. Subject to strict hiring and vetting processes, strong security culture helps employees understand what is at stake if security procedures are not correctly followed, and compels them to stick to those procedures,” says ICAO. Developments in security hardware and software are occurring frequently across all aspects of the airfreight mode. Increasingly security will be as much about AI and digital technology as it will be about scanners and locks.
“One key aspect of technological advance in the airfreight industry has to be the issue of de-staffing”
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TSA AND ACI EUROPE: SECURITY SCREENING TECHNOLOGY THROUGHOUT EUROPE
Security in air cargo is about discussions, design discovery
“The fact that security equipment manufacturers have now joined our dialogue speaks volumes for our vision and the standards we are setting”
The chief executives from the Transportation Security Administration (TSA), ACI EUROPE (Airports Council International), along with airports and industry stakeholders including London Heathrow, Avinor and the European Organisation for Security (EOS), met in Brussels to endorse their continued collaboration to address open architecture for airport security systems. Worldwide, transportation security equipment is moving towards a concept of open architecture, which is a technological framework that facilitates collaboration, shared resources and an outcome in which common goals are achieved. Implementing open architecture principles into the security screening system will focus on open data formats, standard interfaces and the establishment of an operationally viable and cyber-secure approach to security systems. Open architecture principles will facilitate uniform standards and an agile response to emerging threats. “Technology and innovation within transportation security is evolving at a rapid pace, and open architecture promises to improve how all transportation security agencies share data, integrate emerging technology at speed, remain cyber resilient and advance our mission,” said TSA administrator David Pekoske. “We remain committed to innovation and working collaboratively with our partners to increase the security baseline.” Olivier Jankovec, director general of ACI EUROPE, said: “This is a collaboration that has reaped not only meaningful synergies today, but has the potential to unlock future applications, partnerships and solutions that we cannot even yet imagine. The combination of our partners’ security pedigree teamed with ACI EUROPE’s guiding hand and expertise in seamless airport innovation, secures not only technological transformation but consumer protection – the cornerstones of progress. The fact that security equipment manufacturers have now joined our dialogue speaks volumes for our vision and the standards we are setting.” Over the past several months, TSA has been working in collaboration with its international partners and stakeholders to update the “Open Architecture for Airport Security Systems” document, initially published in July 2020. TSA was among the signatories of that document.
Effective partnership In tandem, to ensure that the objectives and benefits set out in this original document could be achieved, ACI EUROPE partnered with the European Organisation for Security to establish a structure where stakeholders can collaborate to develop the necessary technical recommendations and address questions on key areas, including liability and the protection of intellectual property”. The collaboration between the different stakeholders, including the security equipment manufacturers, has enabled the group to achieve significant steps forward, most notably in identifying technical options that would allow manufacturers to comply with the open architecture principles. The partners are actively working to implement open architecture principles into the security screening system, focusing on open data formats such as Digital Imaging and Communications in Security
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(DICOS), standardised interfaces and establishing an operationally viable and cyber-secure approach to accessible property screening, on-person screening and identity verification. Multimodal and Public Area Capabilities In the United States, under the TSA Capital Investment Plan FY 2022–FY 2026, the “Multimodal and Public Area Capabilities (MPAC) Air Cargo Security Technology Programme (ACSTP) supports the dynamic application of terrorism countermeasures by regulating the airline industry’s use of screening technologies and by using allocated resources efficiently for cargo modality risk mitigation.” The programme evaluates and qualifies technologies that can detect illegal explosives being transported on passenger aircraft. It can assess security solutions for all cargo carriers while maintaining a qualified list of cargo screening technologies. This programme explores emerging counterterrorism capabilities. ACSTP’s mission areas are directed by Implementing the recommendations of the 9/11 Commission Act of 2007 requiring that all air cargo uploaded on passenger aircraft be screened at a security level equal to that of passenger-checked baggage. In addition, the ACSTP is directed by a 100% air cargo screening requirement. This requirement states that 100% of cargo to be loaded on a passenger aircraft in the USA must be screened following TSA-approved processes and procedures.
In the future The ACSTP seeks to continue evaluating next-generation technologies to improve security effectiveness and operational efficiency. Currently the ACSTP test and evaluation pipeline consists of more than 20 devices, with new submissions being received on a rolling basis in response to the continually open request for information. In addition, TSA has successfully completed the high-priority Explosive Detection Systems (EDS) field assessment and also is preparing a guide on best practices for operator training, message handling systems configuration, installation and commissioning. These efforts are setting the stage for the potential future use of next-generation EDS in air cargo and increased EDS use is expected by screening facilities that use conveyor systems. These emerging technologies would replace existing capabilities to meet new TSA standards. TSA also plans to refresh the ETD test bed, which consists of 200 devices across more than 60 sites, with next-generation technology capable of detecting new threats in the air cargo security landscape.
Digital security The IT systems within the airfreight sector, three major and two minor applications, include the following: Indirect Air Carrier Management System, Freight Assessment System, Known Shipper Management System, Certified Cargo Screening Facility Tool, and Security Threat Assessment Tool. These systems work to confirm identity, to verify business legitimacy and to assess the risk of companies shipping goods on passenger aircraft, says the TSA. The purpose is to vet individuals in security sensitive positions to reduce the risk from insider threats; to ensure that entities transport-
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very and development ing and screening air cargo employ appropriate security procedures; to provide historical cargo reporting data; and to facilitate air cargo data-sharing across TSA. The Air Cargo Management Systems Branch provides access to IT systems that facilitate TSA’s efforts to ensure the security of cargo transported on passenger aircraft. These systems are used by more than 35,000 industry users; vet approximately 7.3 million shippers and 450,000 air cargo workers; and support regulation of nearly 4,000 indirect air carriers.
Three-Ds In support of its future modernisation effort, TSA initiated “discussions, design discovery and development” that will result in a new system, the Certified Facility Management System. All systems will be integrated into this new system in a phased approach. Thetechnicalobjectivesofmodernisationareasfollows:consolidateand integrateexistingsystems;enabletwo-factorauthenticationsolutions;enhance support of certification and accreditation security activities; enable the mobile worker; leverage the cloud and implement agile development.
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AS MUCH CARGO AS POSSIBLE ON EACH ULD AND FLIGHT
“We are not the ones who decide what type of fuel is used, or how many aircraft fly per day”
The thought that Nathanaël de Tarade, CEO of Wiremind Cargo, brings to the office daily is that sustainability is all about ensuring that what we do now to meet our current needs does not negatively affect the ability of future generations to meet theirs. Launched in 2022, Wiremind Cargo is the cargo arm of the Wiremind Group, founded in 2014 and is at the cutting not only of technological developments in airfreight but on how the digital world can reduce its carbon impact on the world, both now and into the future. de Tarade and his team have worked as hard on their technology as they have on reducing the impact that technology has on the environment. The result of these efforts to reduce the carbon footprint is that the group, including Wiremind Cargo, jointly emits around just 10 tonnes of CO2 per annum, the equivalent of a couple of private cars. de Tarade says: “We have already optimised our footprint quite significantly within what is possible for us. In the short term, it would be difficult to be carbon neutral, as we rely on server resources that are difficult to replace by something else.”
Writing codes While creating code at Wiremind Cargo might seem to be carbon-free as the finished product does not have a physical presence, there is a surprising carbon output from this activity. How does that come about? He says: “This is a great question! It seems obvious until you have to answer it. In fact, if you look at the code itself, which is written and then someone uses a digital solution, there is an intermediate step between that ‘reads’, or ‘translates’ if you will, the code into action. This step requires a lot of computing power, which itself requires a lot of electricity, as well as cooling, because the servers that perform those actions produce a lot of heat. All of this process has a carbon footprint.” The company’s RUST, a recent programming language, has a “footprint that is much lower than certain other available options”. How can it be lower than rival programs? De Tarade says: “A study entitled “Energy Efficiency across Programming Languages”, carried out by a group of Portuguese researchers, compared the energy consumption of 27 programming languages. RUST was ranked Number 2. I don’t want to get too technical here, but one of the main reasons behind the differences in energy consumption is the way a language gets translated into tasks that are performed by your computer. This process can be heavy or light: in the case of RUST, it is very light.” Where large companies often have thousands of server resources that are fragmented, rarely optimised and often not fully utilised, the Wiremind Cargo’s approach is to write code with extremely high standards of quality in order to avoid this situation. A concrete example would be the newly launched algorithm in SkyPallet, one of the most innovative products of Wiremind Cargo, which is written entirely in RUST. This gives the company’s end-goal as being to help the industry ship the same amount of freight by using less capacity.
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He says: “This is where the power of RUST brings added value: in a very short time, we are able to calculate (in our SkyPallet algorithm) optimised build-up schemes for ULDs and flights. This means fitting as much cargo as possible on each ULD and flight.” The company’s existing CargoStack CMS is being improved at the same time to add more modules and capabilities, so that additional added value can be offered to the company’s customers.
Space wastage no more Wiremind Cargo’s most visible approach to sustainability is in the capabilities of its digital solutions. The flagship SkyPallet product is a clear contributor to a more efficient and sustainable use of capacity and available resources. “We are not the ones who decide what type of fuel is used, or how many aircraft fly per day,” de Tarade, clarifies. “So, what we do is clearly on a small scale. However, what our product can do is reduce space wastage. Our end goal is to help the industry to ship the same amount of freight by using less capacity.” Similarly, Wiremind Cargo’s recently launched CargoStack CMS suite includes modules that also aid in avoiding wasted space: the overbooking forecast module is one example. “We are continuously improving our solutions to make them even more efficient and useful contributors to the industry, so I am very much looking forward to the next implementation of these modules with our airline customers.”
Hiring staff As a startup, it can take a lot of work to be recognised by candidates as a serious option as a place to work, considers de Tarade. “After a few years, we started seeing that our ‘attractivity’ was really increasing and now I am very happy that Wiremind as a group can attract the best talents in the market. “There is still a strong shortage when you are hiring top-class software engineers, but we have been quite successful so far. We are currently hiring for a number of positions, including software.” The general airfreight industry may not feel too welcoming to the idea of sustainability and the necessary costs and disruptions required to deliver it. Has he and his team encountered any push-back in promoting the idea? He says: “Let’s be honest: the industry does not like to hear that it has to cut back on emissions. Also, having so many stakeholders creates additional complexity: if one of the main players makes a move, everyone will be reacting to it. That can sometimes be positive: if the move goes in the right direction, the industry will follow. “While it may be true that the younger generation is more active and concerned about climate change, that does not imply that older people are not concerned. We all have children around us, whether ours or those of family relatives and friends. So it would be very selfish to consider sustainability is only their concern.”
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SOFTWARE ROBOTS MOVE INTO TURKISH CARGO’S BUSINESS PROCESSES
SMARTIST, which is designed to serve as the biggest industrial building under a single ro Airport, will achieve an annual capacity of four million tonnes at an area of 340.000 sq m of all of its phases. The facility, equipped with the smart technologies, now incorporates al transportation operations in the mega-cargo facility. We spoke with Ahmet Kürşat Baltacı, regional cargo marketing manager (Asia Pacific), T
“Turkish Cargo will be minimising human dependency based on speed and efficiency, optimise storage processes, and increase quality by ensuring efficient use of space” 8
ACW: Your SMARTIST facility in Istanbul is equipped with smart technologies such as Pallet Control Handling System, Automatic Storage Systems and Robotic Process Automation. Can you expand on these systems? Baltacı: Turkish Cargo’s new facility at Istanbul Airport, SMARTIST, has been equipped with industry 4.0, logistics R&D, innovative studies and technological infrastructure. Two different systems have been used, namely PCHS (Pallet Control Handling System) and ASRS (Automatic Storage and Retrieval System), for automation of the processes. PCHS systems store ULDs, which are unloaded from the aircraft or ready to be loaded on board the aircraft, and transfer the same to the intended location automatically. ASRS systems store the smaller cargo packages, comprising the contents of the ULDs, and transfer them to the intended location automatically, if and when so needed. These brand-new systems use their own artificial intelligence to optimize their movements, resulting in minimization of any intervention by employees and therefore enhancing quality of service. Our mega cargo facility SMARTIST will address the needs of the market and maximise customer satisfaction by ensuring that all special cargo processes, from acceptance to delivery, in private areas - perishable, pharmaceuticals, valuable cargo, live animal transportation, express, e-commerce cargo - are carried out with the highest possible standards of quality. These brand-new systems use their own artificial intelligence to optimize their movements, resulting in minimisation of any intervention by employees and therefore enhancing quality of service. One of the processes that we have been conducting and investing is the integration of RPA (Robot Process Automation) technology, and therefore software robots, which we call metal collars, into our business processes. ACW: Can you outline what problem each of these technologies seeks to remedy?
Baltacı: With these innovations, Turkish Cargo will be minimising human dependency based on speed and efficiency, optimise storage processes, and increase quality by ensuring efficient use of space. In this way, we freed our employees from manual and repetitive routine works, enabling them to focus on high value-added works and increased their motivation accordingly. In addition, we have carried out the operations that need to be done 24/7 with our metal collar employees, for an improved and uninterrupted business process. ACW: Are there any smarter technologies not included in that list? Baltacı: By moving into SMARTIST, Turkish Cargo aims to improve operational speed and quality following the use and integration of several smart technologies, such as Unmanned Ground Vehicles (UGV), 3D ULD Planning, wearable technologies (AR and VR Technology), Unmanned Air Vehicles (UAV) into the processes to become one of the leading airlines worldwide in terms of capacity and service quality as well as offering fast transfer advantages to customers. We took good steps towards digitalisation-based service process automation and one of them is Turkish Cargo’s WhatsApp Chatbot called Cargy which offers customers the opportunity to learn AWB status and tariff inquiries based on O&D via WhatsApp. In addition, within the scope of the Digital Marketplaces project, Turkish Cargo has been providing integration with the WebCargo platform, offering enhanced service to customers in terms of online reservation. With the help of these advanced features, our customers can view the most up-to-date tariff and charge information on the WebCargo platform and complete their reservations with the carrier within minutes. ACW: How wide is your use of smart technology in Asia? What is the Turkish Cargo network in Asia? Baltacı: Turkish Cargo encourages E-AWB penetration and we recorded 97% in average usage rate in Asia Pacific Region in March of this
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“Turkish Cargo is now operating flights to 27 stations within the APAC Region, 16 of which are served with widebody cargo freighters”
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ngle roof at the Istanbul 0 sq m upon the completion rates all of its air cargo
cific), Turkish Cargo year and target to achieve 100% in this year. By elimination of the paper-based processes, we’ve made it as simple as possible to assist all of our supply chain partners to manage shipments in an easier way, also save on paper, improved efficiency and reliability on the overall cargo handling process, faster delivery times, and a positive impact on the environment. Together with the Web Cargo portal, forwarders around the world have the ability to conduct real-time ebookings, access live freight rates, and check the air cargo capacity availability. Turkish Cargo is now operating flights to 27 stations within the APAC Region, 16 of which are served with widebody cargo freighters. We carry more than 2,000 tons in a total of shipment every week from the first-tier cities in China like Shanghai, Guangzhou and Shenzhen. In Hong Kong, Turkish Cargo operates twice a week B777 freighters capacity. Turkish Cargo also brings capacity to North East Asia in Taiwan and Korea, and to South East Asia in Vietnam, Thailand and Cambodia to assist our customers to carry their products all over the world using Turkish Airlines wide network connecting more than 340 destinations globally. Macau is the newest cargo route Turkish Cargo has added to its flight network in January of 2022, targeting shipments like high technology, e-commerce, electronics, and textiles also aims to strengthen the air cargo bridge established between Europe and APAC region with its reliable, agile and direct air transportation service with Airbus A330F widebody cargo aircraft twice a week frequency. Technology is facilitating the growth of the whole logistics sector in Asia and beyond. For the air cargo industry, Turkish Cargo is gradually embracing the technology revolution that includes shifting from the substantial use of legacy mainframe systems to more tailored systems to improve efficiency and transparency. The latest technology developments in logistics enable us to streamline the operations procedure, reduce costs and optimise revenue.
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CARGOAI’S SECOND TECH SUMMER EVENT LAUNCHED The event will be the largest face-to-face air cargo event in Singapore in 2022
“Launched for the first time as a free, three-day online event in August 2021”
Following last year’s online Tech Summer success, CargoAi is back with a hybrid version on 23-25 August 2022. Digitalisation of the air cargo industry and its sustainable adoption remain the core focus and the agenda also premieres the largest face-to-face air cargo event in Singapore in 2022. Launched for the first time as a free, three-day online event in August 2021, the aim of CargoAi’s Tech Summer webinar series is to establish a community with airlines and forwarders. It also aims to bridge any gaps in technological understanding within the industry. This year’s set-up follows a similar format, and includes improvements based on feedback received from last year’s attendees. This means the sessions have been extended, and there will be a greater mix of CargoAi and guest speakers. Past attendees are encouraged to participate again as the focus topics will be discussed from a different angle, and the BDP discussions may give rise to new ideas. Each topic will be presented both by a CargoAi chief executive and a guest speaker, before opening the floor to the attendees for a question-and-answer session.
Day 2
Day 3 has a focus on sales and marketing and will be a hybrid session. In the online session: “What secret sales and marketing weapons do you need for a digital future?” Magali Beauregard, CargoAi’s chief commercial officer, will address the importance of data as an enabler for sales optimisation. This session uncovers best practices when it comes to building a sales and marketing stack to draw the greatest benefit from digital analytics. While the third day’s hour-long focus topic session will be livestreamed at the usual time for the online audience, this year’s Day 3 also includes the first and largest onsite air cargo event in the region in 2022. In line with CargoAi’s aim of establishing a tech cargo community, global and top regional airline and forwarding managers are invited to a dedicated event space in Singapore, for an exclusive evening networking programme. “We look forward to welcoming a good cross-section of the air cargo industry again this year, as well as some excellent guest speakers this time around, since we were very CargoAi-centric last year,” Matthieu Petot, CEO of CargoAi, explains. “The overarching theme that we have chosen for this year’s event, is ‘How to digitise your company in a sustainable manner.’ We will be breaking this down into a digestible format, and tackling it from a different perspective: tech, product and sales and marketing each day, sharing best practices and demonstrating how technology can help an organisation generate and improve business at a sustainable speed.” Attendance is free for all those involved in the air cargo industry. Registered attendees will be given the opportunity to send in any questions they may have, two weeks prior to the event.
Product on Day 2 will be presented by Elena Volkova, CargoAi’s chief product officer, and looks at the tools and methodologies integral to an agile mindset. It will discuss the choice of insourcing or outsourcing when it comes to product development, along with the factors influencing a product’s speed to market, and the overall value for your business.
Interested parties can register now on: https://www.cargoai.co/ tech-summer-digitise-your-organisation-sustainably-with-cargoai/
Day 1 Starting at 10:00 UTC/12:00 CET/18:00 SGT, Day 1 and Day 2 will both be online sessions. These sessions will each last roughly one hour, and focus on Tech and Product, respectively. Francois-Xavier Gsell, CargoAi’s chief technology officer, will introduce the Day 1 Tech session, giving tips on digitally transforming your business, and talking about the key factors to be included in any decision-making process: resources, skills, security, costs; and the degree to which these are scalable and sustainable.
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