The air cargo industry is undergoing a seismic digital transformation. e-booking platforms like cargo.one, WebCargo by Freightos, CargoAi, and CargoBooking are emerging as key players, promising streamlined operations, cost reductions, and faster, more efficient booking processes. But despite these bold claims, some crucial questions remain: Are these platforms truly the revolution they are touted to be? Do they offer all available booking options? Why do many forwarders use multiple platforms despite the promises of all-in-one solutions? And most importantly: Can the data be trusted?
Accessibility and global reach of e-booking platforms
The global accessibility of e-booking platforms is a major concern. Although platforms like cargo.one have expanded their network by partnering with major carriers such as SAS Cargo, Delta Cargo and lately Polish carrier, LOT Cargo, full worldwide reach is still work in progress. Freight forwarders must ensure the platforms they choose cover the regions and airlines they operate with. Integrating these platforms into existing workflows can also be a challenge for companies that have long relied on traditional booking methods and charge booking options and prices by email or phone.
Why forwarders use multiple platforms
Despite the allure of a single platform offering everything a business needs, many freight forwarders choose to work with multiple e-booking platforms. The reason is simple: no platform is a one-size-fits-all solution. While cargo.one excels in providing instant quotes and payment security, it might not offer the multimodal services larger forwarders require. Similarly, WebCargo by Freightos is a powerful tool for managing air, ocean, and land freight but may be overly complex for businesses focused solely on air cargo. Using multiple platforms allows forwarders to tap into a variety of features, rates, and carriers, optimizing their booking processes to suit their specific needs.
76% Carriers representing global capacity digitized compared to only 9% in 2020 – source: WebCargo by Freightos
Ensuring data accuracy: understanding rate fluctuations in e-booking platforms
One of the biggest concerns when using e-booking platforms is the reliability of data. Some may question whether the rates displayed on these platforms are accurate and up to date. The answer lies in understanding the process behind these platforms. The rates shown on these platforms are updated in real-time, but there can be delays in the time it takes for a rate to be confirmed by the freight forwarder. By the time the rate reaches the forwarder, it may no longer be the same due to changes in airline availability or market fluctuations. This is not an issue of manipulation but rather a result of irregular updates. In other words, rates can fluctuate between the time they are first displayed and when they are confirmed, which is a normal aspect of the dynamic nature of the air cargo market.
$100m in booking revenue driven for a top 10 global airline from low-cost online sales – source: WebCargo by Freightos
e-booking platforms as the industry’s smartest investment
The promise of increased efficiency, cost savings, and faster transactions makes e-booking platforms a tempting investment for many in the air cargo industry. But do these platforms live up to their claims? Let’s break down what each major player offers:
cargo.one: speed and security
cargo.one’s platform offers real-time quotes and a global payment protection program, securing transactions and reducing the risk of payment defaults. This can be a game-changer for companies dealing with international transactions. While the ability to reduce quotation turnaround from hours to minutes is undoubtedly valuable, the necessity of payment protection depends largely on the frequency of payment disputes in the industry. The platform’s widespread adoption and ease of use make it a strong choice for many, though integrating it into established workflows may require additional training and adjustment.
WebCargo by Freightos: multimodal power
WebCargo stands out with its ability to handle air, ocean, and land freight, making it a go-to solution for large forwarders dealing with multimodal logistics. The platform’s real-time rate access allows forwarders to instantly compare prices from airlines and ocean carriers, slashing the time spent on manual quotes and price negotiations. However, this wealth of features can be overwhelming for smaller companies that only need air cargo solutions. Additionally, WebCargo’s integration with transport management systems (TMS) helps streamline booking processes but may increase training costs and complexity for businesses not already using TMS.
CargoAi: flexibility and customization
CargoAi’s platform offers a highly flexible approach to booking, with tools like CargoMART, which allows forwarders to compare rates and book directly with airlines, and CargoGATE, a customizable white-label solution for a tailored booking experience. While this flexibility is a significant advantage, it comes with a downside: implementing these tools requires solid IT infrastructure and technical know-how. Forwarders with limited digital capabilities may find the integration process challenging, making it harder for them to fully take advantage of the platform’s potential.
CargoBooking: AI-driven efficiency
CargoBooking sets itself apart with its AI-powered tool, eMagic, which automates data extraction and booking processes, reducing the chances of manual errors. This means faster quote processing and fewer mistakes in the booking process. However, the platform’s reliance on AI poses its own challenges. The quality of the data it processes is crucial – if the input data is incomplete or inconsistent, the AI may not perform optimally, and manual corrections could still be required. Despite these hurdles, CargoBooking represents a significant step toward automation in air cargo logistics.
The key to long-term efficiency lies in choosing the right digital solution
The digitalization of air cargo booking presents both opportunities and challenges. Each platform offers distinct advantages, from real-time booking and payment security to multimodal capabilities and AI-driven automation. For freight forwarders, the key lies in evaluating their specific operational needs and selecting the platform that aligns best with their business model.
However, adopting these platforms is not without its hurdles. Integration costs, training expenses, and the compatibility of platforms with existing systems must all be considered before making an investment. While these platforms promise efficiency and cost reductions, forwarders must carefully evaluate whether the benefits outweigh the costs and challenges in the context of their business needs. In the end, the right e-booking platform could revolutionize air cargo operations – if chosen wisely. The industry is clearly embracing the digital shift, but it’s important for forwarders to find the platform that best aligns with their long-term goal.
