FREIGHTTECH: THE BUSINESS MODEL OF TOMORROW. In April this year, Logitech withdraw its stake from Harmony. It is a universal remote control company which had Logitech had acquired a few years back. To give an overview for laymen, Harmony remote controls enable an integrated experience to the users with the proliferation of various gadget controls. It combines DVDs, stereos, TVs, Xboxes, and VCRs into one device that could be programmed to initiate workflows. That is once certain customized inputs are given, they can work on their own with minimal need for further instructions. Thus, one might think this pull-out came to the disappointment of the owners of harmony. However, quite inconceivably it is a great development from the viewpoint of a freight technology enthusiast.
What is freight technology?
The freight technology sector also goes by the expression FreightTech, which basically means the software companies and technologies which assist in supply chain management and the movement of freight. In the five years following 2014, investment in FreightTech companies grew from $118 million to a whopping $3 billion per year. The onset of the pandemic has just skyrocketed it even further.
In the last decade, there has been a notable shift in the way big firms communicate with their retail customers. Algorithms have effectively replaced have seen phone calls and email chains replaced by algorithms and digital platforms. This obviously had tectonic shifts in the performance of the companies as waiting hours for a call or a confirmation email wastes time, resources, and ultimately, money. More and more logistics professionals are looking for ways to automate away those rote tasks while simultaneously creating a more coherent communication stream across the entire supply chain.
As evidenced by the mass Coronavirus disease (COVID-19) disruptions and the more recent Suez Canal incident, being able to respond to delays in real-time is not just convenient, but critical, for modern logistics. Digital marketplaces are helping move the needle for both data sharing and transactions. By consolidating parties onto a single platform, it’s easier to connect shippers and providers more directly and in real-time. In many a place, freight marketing has in fact set the ball rolling after the hiatus the pandemic very ungratefully offered. It did away with the need to start a lot of elements right from the scratch.
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Harmony remote case
Coming back to the Harmony remote case, from where this entire conversation began. Harmony remotes sought to solve a fragmentation problem. For instance, to play a graphic intense sophisticated game like Tony Hawk’s Pro Skater 2 on my Playstation, I had to turn my TV and stereo system on and choose the right input, I needed way too many remotes. Harmony brought that all together, which was fun and quite convenient use in recruitment. It was an ergonomic solution, stitching together disparate systems, where even the right thing happening in the wrong order could doom my PlayStation session. Thus it’s critical to get everything right.
To some extent, it was global freight in a nutshell. At this point, carriers have their own automation and data under control. The point of failure is always on coordinating between systems. This is one of the main raison deters for freight forwarders. Doom, whether shorter video game sessions or lost cargo, lurks in the handoffs. The recent Suez Canal blockage incident was probably the last eye opener needed for all the stakeholders to take matters into control.
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Airfreight
The intersection of freight technology with air cargo is already a tried and tested formula especially in cold chain management. It is usually employed for time-sensitive goods such as agricultural products,, vaccines and some medications. Data loggers can record temperature, light, humidity, and GPS location and the proper corroboration of these inputs can provide the foundation to cool, handle. And transfer the products without hampering their quality. In a study, it was found that a massively large sum of revenues is actually expended in dispute resolution for shipment delays and damage in the quality of the products to be delivered.
The world’s first blockchain-based system for streamlining air cargo costing, billing, and reconciliation was announced at the 2019 IATA World Cargo Symposium. This can further be corroborated with the currently booming cryptocurrency industry for added benefits.
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How technology is powering Air Freight?
The effect that technology has had on industries all over the world cannot be understated. Its influence is prevalent and has transformed the way in which companies operate, as artificial intelligence (AI), automation and Big Data begin to take hold. The air freight industry is certainly no exception.
Spencer Davern, Director of Air and Ocean at Rhenus Logistics UK, believes the air freight industry is going through a period of modernization, with digitization leading the way. “Many who work in the logistics industry will have experienced the painful hours spent in line at airport sheds during peak times, waiting to collect or deliver cargo shipments,” explains Davern. “Thankfully, due to technological advancements and the fast-paced nature in which the logistics industry adapts. This no longer has to be the case.
Through the implementation of E-AWB (electronic Air Waybill), the logistics industry has seen significant improvements in inefficiency. Removing the need for paper documentation has proven instrumental in streamlining the process of handling air cargo shipments. In addition to this, E-AWB enables information to be provided electronically to the airline before delivery, with some forwarders able to book their E-AWB shipments using a smartphone direct to the carrier’s warehouse shed without the need for queuing at reception. This new process ensures that cargo shipments are processed in the most efficient manner.
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e-commerce boom
The Air Freight industry is very understandably on the uprise. This is because of the increased demand for online shopping thanks to the prevailing pandemic. The purported e-commerce boom is fuelling demand for faster transportation for transport which in turn is forcing the companies to remodel their logistic and distributorship designs. And obviously, air freight has a huge role to play in it. Thus ramping up the profitability of major airlines, despite growing tensions among major players.
According to the International Air Transport Association, demand for air freight in 2018 is expected to rise by at least 4% with major carriers. Such as Korean Airlines, Cathay Pacific Airways, Lufthansa, and Emirates likely to benefit from the windfall activity with online shopping.
Airfreight and parcel companies like FedEx, UPS, DHL, and the like are also riding the wave, thanks in large part to positive sentiment emanating from Europe. The European Union’s most profitable member country, Germany now features a booming export market. Which has helped to catapult Lufthansa into position #7 in terms of cargo.
The current market trends are a testament to a robust European economy with significant imports and exports driving the air freight industry. The simmering tensions between the United States, Iran, Turkey, Russia, China, and Europe are cause for concern. Yet consumer sentiment has rebuffed these trading shenanigans.
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Ancillary technology
Hence we see, with the constant change in the customer needs, ancillary technology. And with the uncertainties that the pandemic. And the dynamic global marketplace is giving rise to, remodeling is a must. As they say, change is the only constant. Airfreight has a key role to play for all ends of the stakeholder. The manufacturers, the sellers, and most importantly the customer. Its effective combination with new technology like the blockchain will make it grow leaps and bounds. The only question remains on the ability to capture it.
Before we talk about what this has to do with the future of global freight. Let me go back to my remote control for a second.
Over the past few years, a standard – HDMI Arc – has progressively ensured that your devices can talk with each other. It’s how your Amazon Fire or Xbox can wake up your TV. It’s how your TV can raise your sleeping stereo. And while most of us don’t pay attention to it, it spelled the death of Harmony.
Video killed the radio star, standards killed the video’s remote. Just check out this timeline of Google searches for Harmony Remote and HDMI Arc.
