The air cargo industry faces a significant challenge: navigating its deeply entrenched silos. For decades, fragmented operations, manual processes, and disconnected systems have slowed progress, preventing the seamless end-to-end cargo delivery that modern global trade demands. With each shipment passing through multiple stakeholders—airlines, forwarders, ground handlers, and others—any inefficiency along the way can disrupt the entire chain. The industry has long relied on outdated tools like phone calls, emails, and paper-based documentation, creating bottlenecks that impact operational efficiency and customer satisfaction alike.
However, the digitalisation wave sweeping across global industries is finally reaching air cargo, offering a solution to break down these barriers. The challenge lies in integrating an ecosystem that historically relied on isolated, manual processes. How can an industry that is this complex overcome its legacy of disconnection to create a streamlined, collaborative environment?
“One of the challenges historically for the air cargo industry has been that it’s an industry that relies heavily on an ecosystem of partners to ensure seamless end-to-end delivery of cargo.It often is the case that the whole delivery experience is only as strong as its weakest link. Therefore, air cargo as an industry is heavily dependent on multi-party collaboration. In a typical shipment lifecycle, you will see multiple touchpoints and a transfer of ownership of transportation responsibilities,” Ashok Rajan, Senior Vice President and Global Head of Cargo & Logistics Solutions at IBS Software, said.
“Historically, air cargo business practices have been heavily dependent on manual processes and offline tools such as telephone calls, emails, and paper instructions as means for integration. Even the usage of Electronic Data Interchange (EDI) is a relatively recent development, with a big portion of the industry struggling to implement EDI. This legacy of physical processes – in my opinion – is the biggest roadblock to bringing in innovative practices and efficiencies in the air cargo industry”.
The air cargo industry has long relied on a complex ecosystem of multiple partners, each handling different aspects of the cargo journey. In an era where technological advancements are at the forefront of progress, these outdated processes have stifled the industry’s ability to innovate and streamline operations.
Recognising these challenges, IBS Software has made it their mission to provide modern digital infrastructure through solutions like their iCargo platform. This approach has been twofold: modernising the core digital infrastructure and enhancing existing collaboration tools – “We make EDI and other tools much more effective,” Rajan noted.
One of the key elements in their strategy is the use of modern architecture principles such as service orientation and an “API-first” approach. This has enabled IBS to facilitate large-scale integration and data interchange, empowering stakeholders to operate in a more connected and cohesive environment. “This opens up a lot of possibilities for stakeholders to create unique use cases for integration,” he stated.
iPartner
At the heart of this digital revolution is IBS Software’s iPartner initiative, which the company describes as a solution designed to foster seamless collaboration across the air cargo value chain. By focusing on data interchange between airlines, forwarders, GHAs, and even other airlines, IBS has created three distinct product offerings under the iPartner banner: iPartner Customer, iPartner Handler, and iPartner Airline.
“We developed a 360-degree view of data interchange around the air cargo carrier,” Rajan said. This includes capabilities such as the digitalisation of paper-based processes, operational task sharing, and combined offers to customers. For instance, pharmaceutical shipments, which require specialised handling, now benefit from integrated digital processes that ensure compliance and quality.
A real-world success story IBS shares involves one of its major clients who used the iPartner Handler platform to digitise their special handling operations. By implementing a uniform set of digital processes across both self-handled hubs and third-party-managed non-hub stations, the airline was able to extend its network of stations capable of handling sensitive shipments without compromising service quality. “This wouldn’t have been possible using traditional EDI systems,” Rajan noted.
As digital collaboration increases, so too do concerns about data security and privacy. Rajan assures that IBS Software takes these issues seriously, employing a comprehensive cybersecurity framework across all their products, not just in air cargo but also in aviation and hospitality. Adhering to international standards such as SOC-Type II, CSA STAR, ISO27001, and PCI-DSS, IBS ensures data is secure, both at rest and in transit. “Especially when we expose endpoints like APIs to the wider internet, we have strong internal security verification principles in place,” Rajan explained. These principles are embedded within the development process itself, using methods like DevSecOps, which integrate security checks at every stage of product development.
AI’s role
The air cargo industry in the US is also exploring emerging technologies such as Artificial Intelligence (AI) and blockchain. IBS believes AI is one of the hottest topics in air cargo, particularly in areas like revenue management, demand forecasting, and automating processes such as shipment data quality checks. While blockchain holds promise as a solution for secure, multi-party data control, it remains in an experimental stage. For now, alternatives like Cargo One Record provide more scalable solutions for data transmission.
‘We are helping US air cargo companies transition to modern platforms while also offering collaboration tools that transcend the limitations of legacy systems,” Rajan said.
The future of air cargo lies in its ability to fully embrace digitalisation. As IBS Software continues to innovate, its platforms like iCargo and iPartner will play a crucial role in breaking down silos, enhancing operational efficiency, and meeting the evolving needs of stakeholders across the value chain.
“Air cargo’s future is in the hands of those who can adapt to the new digital reality, and IBS Software is here to help guide that transformation,” he added.
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