While reshaping the dynamics of the Air Cargo Industry, Freighttech or freight technology has witnessed exceptional growth in recent years, worldwide. The surge in technological advancements has brought about a paradigm shift in managing logistics and transportation, leading to organisations investing in IT (Information Technology) solutions.
According to Boyden's industry insights, supply chain technology firms invested more than US$ 62 billion in funding in 2021. Moreover, nearly US$ 9 billion was allocated to the startups, highlighting the sector's rapid evolution and promising investment opportunities.
The Emergence of FreightTech as a Disruptive Force
FreightTech has been a transformative force in recent years, changing and enhancing the traditional freight operations. The International Air Transport Association (IATA) forecasts a 4.5% growth in airfreight volume for 2024, building upon the positive momentum witnessed in the second half of the previous year. Nonetheless, they also highlight the necessity for resilient and adaptable freight solutions.
The Imperative of Digitalisation
Digitalisation stands out as a pivotal trend in transforming the Air Cargo Industry. Both digital and traditional freight forwarders increasingly recognise the critical role of advanced technology in boosting operational efficiency and fulfilling customer expectations. This shift is evident in the investment towards digital capabilities, that includes integrating track-and-trace functionalities and developing user-friendly platforms. Accenture's research underscores the urgency for the industry to embrace digital solutions, as more attention to digital innovation poses a significant threat to the operations of 76% of freight and logistics companies.
Economic and Technological Disruptions:
While 2023 presented challenges from unforeseeable events, 2024 brought new challenges, such as climate change and geopolitical unrest.
They possess the capability to disrupt resource supplies, transportation routes, and manufacturing processes, resulting in escalated operational expenses. However, they also underscore the necessity for resilient and adaptable freight solutions.
Despite economic uncertainties and geopolitical complexities, freight forwarders have opportunities to thrive by strategically investing in technology and sustainability initiatives. By embracing digitalisation, fostering innovation, and prioritising resilience, forward-thinking companies can navigate challenges and position themselves for success.
The rise of Freighttech signifies a transformative phase for the Air Cargo Industry, driving innovation, efficiency, and sustainability. As forwarders adjust to technological disruptions and market shifts, strategic investments and a proactive approach become crucial in unlocking the complete potential of Freighttech and shaping the industry's future.
