Digital Transformation in Air Cargo: Challenges, Innovations and Leadership Insights

Kebebew Bulto began his career with Ethiopian Airlines in 1993 as a trainee aircraft maintenance technician. After completing a two-year training program in 1995, he was employed as a junior aircraft technician. Over the next nine years, he advanced to the position of lead aircraft technician. Concurrently, Bulto pursued an evening program in electrical engineering, which he completed in 2003.

In 2004, Bulto served as a Business Analyst, Project Manager and eventually Manager until 2015. He then moved to Infrastructure Development and Management for Ethiopian Cargo, from 2015 to 2019. From 2019 to 2024, he served as the Ethiopian Cargo Manager for the Far East region, based in Hong Kong.

Currently, Bulto has returned to the head office and is presently the Project Manager for e-commerce systems, looking forward to another exciting chapter in his career.

A Journey of Adaptation and Leadership

My childhood aspiration was to join the health sector as a medical doctor. After excelling in high school, I joined medical school, but socio-political and economic shifts led me to pivot towards aviation. I trained as an Aircraft Maintenance Technician, completed at the top of my class, and worked in aviation for nine years while studying electrical engineering in the evenings, earning a BSc in 2003. I then transitioned to information technology as a business analyst, gaining an in-depth understanding of the aviation industry, from operations to project management. This role provided invaluable learning and networking opportunities.

After four years, I moved into IT management, where I worked on strategy development and implementation for seven years. I then shifted to Cargo and Logistics, managing infrastructure development before becoming the regional cargo manager for the Far East, based in Hong Kong. The COVID-19 pandemic tested my resilience and strengthened my skills in international business leadership. Returning to headquarters in early 2024, I now serve as the Digital Manager for Ethiopian Cargo & Logistics Services. My career has been shaped by overcoming challenges, resulting in a well-rounded professional journey.

Managing Air Freight Cargo Operations on a Global Scale

I treat challenges as opportunities and strive to learn and grow from them. One of the most significant challenges in my airfreight career was the COVID-19 pandemic and its aftermath. Abrupt border closures and government restrictions left airlines with little time for strategic adjustments, grounding most passenger aircraft overnight and congesting parking stands. Meanwhile, governments were importing personal protective equipment, creating a demand gap. We quickly adapted by using excess capacity from grounded aircraft and converting part of the fleet to preighters (P2C) within a short time. Fortunately, some airlines turned these challenges into opportunities, incorporating them into their survival strategy, which helped maintain profitability and avoid layoffs. Additionally, some were able to transport their own manpower to labor-short airports, allowing them to sustain operations throughout and beyond the pandemic by innovating and thinking differently.

Enhancing Risk Management Strategies

Data analytics and AI play critical role in enhancing risk management strategies for cargo operations like their contribution in other strategy management fields.

1.  Real-time monitoring, IoT and other technologies can be used to track shipments real-time and provide full visibility of the supply chain avoiding security/theft risks and minimize risk of customer dissatisfaction and business loss.

2.  Predictive/prescriptive analytics, analyzing historical trends, AI may be used to predict potential risks such as delays/congestions, damage and theft risks helping businesses to take proactive measures.

3.  Risk Assessment: AI tools can be used for risk scoring and scenario analysis to make informed decision and develop risk mitigation/response strategies.

4.  Fraud Detection: pattern recognition and automated audits will assist fraud detection and enhance fraud prevention.

5.  Optimization of Resource: efficient flight route planning and resource allocations can be made by studying trends in weather, traffic flow, geopolitics, manpower and equipment to enhance productivity, minimize costs and ensure smooth operations (avoiding disruptions).  

6.  Enhanced Decision Making:  data driven insights and strategy planning will help airfreight industry to informed, tactical/long-term decisions minimizing decision errors.  

Leveraging data analytics and AI, cargo operations can become more resilient, efficient and secure, leading to better risk management and operational excellence.

Efficient and Transparent Cargo Management

Implementing Digital technologies in cargo management has multifaceted benefits. For instance, IoT can be used for real-time tracking and predictive maintenance, Block Chain for smart contracts and immutable records, AI and ML for demand forecasting and route optimizations, Cloud Computing for data accessibility and scalability, Big Data Analytics for insight generation and performance monitoring, Process Automation and Robotics for automated warehouse and for drones and autonomous vehicles, Mobile technologies for ease of access and customer engagement. In general, implementing these technologies can lead to more efficient, transparent and reliable cargo management systems.

“Leveraging data analytics and AI, cargo operations can become more resilient, efficient and secure, ultimately leading to better risk management and operational excellence.”

Technology Advancements in the Air Freight Cargo Industry

The airfreight industry is poised for significant transformation over the next decade, driven by several key trends and technological advancements for which the stakeholders need to get prepared fast enough. Below trends are already becoming so pressing and in a very fast move: e-commerce, sustainability initiatives, global trade dynamics, urbanization and infrastructure development, regulatory changes and geopolitics.  Technology is also fast advancing: Automation and Robotics, AI and ML, IoT, Block Chain, Digital Twins, 5G network connectivity and sustainable technologies. These trends and technologies will collectively shape a more efficient, transparent and sustainable airfreight industry.

Leveraging Expertise to Foster Innovation

Logistics has become an integral and growing part of the global economy as its worldwide applications enable businesses to mark their presence in the international market. Thus, the logistics and cargo sectors are expected to see significant growth in the coming years. Some key projections are: Global freight and logistics market is forecasted to grow to 18.69 billion by 2026 with a compound annual growth rate (CAGR) of 4.4 percent; global logistics market is expected to reach 6.55 trillion by 2027 growing at a CAGR of 4.7 percent between 2022 and 2027. Overall logistics market will grow at a CARG of 7.25% through 2030.  Hence, my advice to the emerging leaders is that fostering innovation in the logistics and cargo sectors can be both challenging and rewarding. The future leaders must be prepared for both: to face the challenges and to harness the rewards. The keys to successful future leadership will be enhancing customer experience, enhancing safety and security compliances, embracing technologies, cultivating a culture of innovation, focusing on ESG, build strong collaborative partnership, staying agile and adaptive, investing in cyber security and building a true team and listening to the team. 

One last and very important message I would share with the emerging leaders is that they have to keep learning, unlearning and relearning. In the current AI enabled world, the conventional knowledges and skill sets may become obsolete, irrelevant or be done better by AI. Hence, we humans should keep learning and equip ourselves with knowledge and skills that help us think differently, Dyslexic thinking skills. Emerging leaders should develop the most important skill sets of dyslexics: visualizing (be visionary), imagining (be creative and innovative), communicating (crafting and conveying clear and engaging messages), reasoning (understanding patterns, evaluating possibilities and making decisions), exploring (being curious) and connecting (emotional intelligence: being self-aware and socially aware, Emphatic and influential). 

Focusing on these areas, emerging leaders can drive innovation and stay competitive in the rapidly evolving logistics and cargo sectors.