Beyond On-Time Delivery

Today's cargo operators are measuring success through visibility, forecasting, connected assets and real-time data, not just whether shipments arrive on schedule.

Key Highlights

  • Real-time shipment visibility and integrated platforms are enabling proactive decision-making and better disruption management in cargo operations.
  • Connected assets like digital ULDs provide near-instant tracking, condition monitoring, and asset utilization insights, reducing losses and improving fleet management.
  • Data quality and sharing initiatives, such as IATA's One Record, are critical for automation, regulatory compliance, and operational efficiency.
  • E-commerce growth has increased operational complexity, requiring more granular data and adaptable planning to handle higher piece counts and diverse shipment profiles.
  • Despite technological advances, skilled human judgment remains essential for handling inspections, security, and complex decision-making in dynamic environments.

A delayed freighter arrives at a cargo hub two hours behind schedule. Warehouse teams must adjust staffing, reprioritize shipments, coordinate with airline operations, reposition equipment and communicate changes throughout the supply chain, all before the next wave of inbound cargo arrives.

A decade ago, many of those decisions depended heavily on phone calls, spreadsheets and the experience of frontline supervisors.

Today, they increasingly depend on something less visible but just as important: data.

Across the air cargo industry, operators are transforming how they manage facilities, assets and freight by connecting systems that once functioned independently. Real-time shipment visibility, integrated operational platforms, mobile devices, connected Unit Load Devices (ULDs) and predictive analytics are changing how cargo facilities work and, increasingly, how performance is measured.

The result is a broader definition of operational success. Performance is no longer judged solely by how quickly freight moves through a facility or whether it reaches its final destination on time. Cargo operators are also measuring how effectively they anticipate disruption, allocate resources, identify exceptions, share information and provide visibility throughout a shipment’s journey.

Performance means more than speed

Cargo facilities have traditionally focused on familiar operational measures, including throughput, warehouse productivity, capacity utilization and on-time performance. Those metrics remain fundamental, but they no longer provide a complete picture.

Today’s cargo environment is more dynamic. E-commerce is changing shipment profiles. Geopolitical events are redirecting trade flows. Customers expect faster access to information. Regulatory requirements are becoming more data-intensive. At the same time, disruption remains a routine part of aviation operations.

That complexity is forcing operators to look beyond final outcomes and examine the processes that shape them.

“Network reliability and hub performance are central,” said Josh Lane, Director of London Operations at IAG Cargo. “We focus on forecast accuracy, capacity utilization and operational visibility to ensure freight flows efficiently through our facilities.”

Forecasting has become especially important as demand patterns become harder to predict.

“As demand patterns become more dynamic, forecast accuracy has become increasingly important,” Lane said. “It helps us plan more effectively, reducing congestion and keeping freight flowing efficiently through our facilities. Ultimately, better forecasting enables better operational decisions.”

Changing trade flows are also making historical patterns less dependable as a planning tool.

“Changes in trade flows are increasingly driven by factors including e-commerce growth, geopolitical developments and changing customer demand,” Lane said. “That means historical trends alone are no longer enough for operational planning.”

For cargo facilities, better forecasting can shape staffing, equipment positioning, warehouse space allocation and shipment prioritization. It can also help operators identify pressure points before they develop into larger service problems.

Lane said first-time accuracy and reduced manual rework are also important because relatively small errors can produce downstream congestion and delay.

Taken together, those priorities reflect a shift from measuring what happened to understanding why it happened and what might happen next.

Visibility becomes operational currency

Cargo operations have always generated large amounts of information.

The difference today is that the information is increasingly available in real time and can be used to guide decisions throughout the day.

Lane pointed to IAG Cargo’s London Operations Control Center as an example of how greater visibility supports disruption management. The center brings together operational schedules, warehouse status and real-time performance information in a single view.

“Working in aviation, disruption is a constant, whether that’s aircraft changes, delays or cancellations,” Lane said. “That visibility allows us to adjust resources, reprioritize freight and coordinate closely with our airline partners, helping to maintain the consistent handling standards our customers expect.”

Real-time information supports decisions ranging from staffing adjustments and equipment positioning to shipment prioritization and responses to schedule changes.

“Without that data, those decisions become reactive rather than proactive,” Lane said.

Integrated systems are also changing how commercial and operational teams work together.

Historically, commercial teams sold available cargo capacity while operations teams managed the physical movement of freight, often with limited visibility into one another’s activities.

“Today, integrated systems give both teams access to booking trends, shipment status, capacity utilization and operational constraints,” Lane said. “That shared visibility allows commercial teams to take proactive action as operational conditions change, helping support better outcomes for customers.”

When booking, warehouse and flight systems are connected, teams can work from the same information rather than reconciling separate records after conditions change.

That shared operational view improves data accuracy, supports faster decisions and reduces the risk that commercial commitments become disconnected from physical capacity or warehouse conditions.

Customers expect more than delivery

The push for greater visibility is being driven not only by internal operational goals, but also by rising customer expectations.

Airlines and freight forwarders increasingly expect transparency, consistency and proactive communication throughout the cargo journey, not simply confirmation that a shipment reached its destination.

“Today, customers expect greater reliability, consistency and transparency across global networks,” said Jussi Lemola, Vice President of Global Operations – Cargo at Swissport. “Understanding performance from their perspective is therefore essential to delivering the service they expect.”

Swissport combines traditional operational KPIs with weekly Net Promoter Score surveys across its global cargo network. The company uses the feedback to compare customer perceptions across locations and identify problems that may not be visible through productivity measurements alone.

Safety and customer performance measures together provide what Lemola described as a balanced view of operational excellence.

“We don’t view this as a question of balancing one against the other,” he said of productivity metrics and newer customer-focused measures. “They measure different aspects of operational performance, and both are essential.”

Traditional indicators such as labor productivity and warehouse utilization show how efficiently resources are being deployed. Cargo iQ milestone compliance, shipment visibility and customer feedback provide additional insight into consistency, transparency and service reliability.

That combination reflects the industry’s changing definition of performance.

A shipment may arrive on time, but customers also want to know whether it moved predictably through the network, whether exceptions were communicated and whether handling standards remained consistent from station to station.

“Customers increasingly expect predictable handling, reliable uplift and clear communication, particularly for specialist and time-critical shipments,” Lane said.

“Increasingly, performance is judged not just on final delivery, but on consistency and flow of the entire journey through the network.”

E-commerce changes the measurement

The growth of e-commerce has added another layer of complexity to cargo facility planning.

Traditional air cargo operations may handle larger shipments with relatively predictable weights and handling requirements. E-commerce often involves much higher piece counts, lower average shipment weights and different processing patterns.

Swissport continues to use standardized productivity KPIs across its global network, but Lemola said the level of detail required has increased.

“What has changed is the level of operational granularity required,” he said. “E-commerce shipments typically involve a higher number of smaller pieces with lower average shipment weights, which changes handling flows, resource needs and planning cycles compared to traditional air cargo.”

To understand those changes, Swissport analyzes measures such as pieces per shipment, average shipment weight and cargo flow patterns over time.

That information helps stations forecast staffing and resource requirements more accurately and anticipate how a changing cargo mix will affect warehouse operations.

The example illustrates why a single throughput number may no longer be sufficient. Two facilities may process the same weight of cargo while facing very different operational demands depending on piece count, shipment type, handling requirements and timing.

Data becomes critical infrastructure

If visibility is becoming an operational currency, data is the infrastructure that supports it.

Anna Maria Kirchner, Head of Global Sales, Finnair Cargo, has identified increasing data requirements as one of the industry’s most significant challenges.

“Regulatory requirements around data are getting tighter,” Kirchner said. “In recent years, we have seen a constant increase in the need for data, be it from different authorities requiring more accurate and granular information or our operations improving the efficiency and load factors of our aircraft.”

Performance measurement is therefore expanding beyond physical handling activities to include the quality, completeness and availability of information.

Finnair Cargo has participated in the Cargo iQ community for decades and uses its performance framework to evaluate shipment processes. Kirchner pointed to NFD, or Notification for Delivery, as an important measure because it can be broken into several component milestones to identify the source of operational problems.

Newer measures, including First In Warehouse, First Out Warehouse and exception handling codes, can provide more detailed insight into where processes are breaking down.

Finnair also uses Lean methodology to develop additional performance indicators and investigate root causes when results fall short of expectations.

Kirchner views IATA’s One Record initiative as an important foundation for the industry’s future. The initiative is intended to standardize how shipment information is shared among airlines, handlers, forwarders, regulators and other stakeholders.

Better data sharing could reduce duplication, improve accuracy and make information more accessible throughout the supply chain.

It may also determine whether future automation efforts succeed.

While automated guided vehicles, storage systems and other warehouse technologies can improve efficiency, Kirchner said they depend upon reliable data.

“Unless we have the data available, the automation projects will fail and just bring more complexity to the daily operations,” she said.

That observation places data quality at the center of operational modernization. Before cargo facilities can automate decisions or predict disruptions, they must first establish dependable information flows.

Connected assets create connected operations

The transformation extends beyond software and dashboards.

Physical assets are also becoming sources of operational intelligence.

Few examples illustrate this shift more clearly than the changing approach to ULD management.

ULDs move between airports, handlers, forwarders, warehouses and ramp locations, making them among the industry’s most difficult assets to track. Historically, airlines relied heavily on movement messages, manual inventory processes and periodic asset checks.

That limited visibility could lead to unreported movements, misplaced assets, excessive inventory and poor fleet utilization.

Unilode now manages approximately 220,000 ULDs, more than 90 percent of which are digitally enabled, according to Ross Marino, the company’s CEO. The fleet is supported by a reader network spanning 220 airports.

That infrastructure provides near-real-time information on asset location, condition and utilization.

“The impact has been substantial,” Marino said. “Unilode has recorded 75 percent fewer unreported ULDs across its digitised fleet, with almost zero ULD losses.”

Digital tracking helps airlines understand where assets are located, how long they remain at a particular station and where imbalances or bottlenecks are forming.

The information can improve fleet positioning, reduce unnecessary inventory and help ensure that the appropriate ULD is available when and where it is needed.

Connected ULDs can also provide information beyond location.

Unilode’s digital tags use Bluetooth and LoRa technology and include sensors that can monitor temperature, humidity, shock and light exposure. The company’s Piece Level Tracking technology extends visibility to the cargo inside the ULD.

Marino said the future of connected ULDs will include continuous visibility, predictive maintenance, condition monitoring and more advanced cargo intelligence.

“Every ULD will become a source of operational data,” he said.

That statement captures a larger change across cargo facilities. Assets that were once managed primarily through inventory counts are becoming active participants in the information network.

The warehouse becomes a connected environment

Inside the warehouse, digital tools are helping operators capture physical activity as it happens.

Swissport has deployed nearly 1,000 mobile and digital devices across its global cargo network to improve real-time Cargo iQ milestone capture and support operational dashboards used by stations worldwide.

One example is the Cargo iQ FIW, or Freight Into Warehouse, milestone, which records the time cargo enters the warehouse.

Capturing that event in real time gives stations a clearer view of inbound flow from the ramp into the facility and through subsequent handling stages.

“This level of operational insight supports more informed planning, enables faster response to changing conditions and enhances coordination across ramp and warehouse operations,” Lemola said.

The information can also help improve later milestones, including readiness for carriage and delivery notifications.

Swissport’s Shanghai Pudong operation offers a more advanced example of the direction cargo facilities are taking. The company’s Digital & Intelligent International Cargo Terminal incorporates automation, artificial intelligence-enabled systems and real-time operational visibility.

The facility is intended to support faster processing, better coordination across trade lanes and the handling of increasingly complex cargo flows.

However, the connected cargo facility is not defined by any single system, device or piece of equipment.

It is created when warehouse systems, mobile tools, shipment data, ULD tracking, flight operations and customer information work together as part of one operating environment.

That connectivity enables managers to adjust resources faster, identify developing bottlenecks and make decisions based on current operating conditions rather than delayed reports.

The competitive advantage may therefore lie less in one piece of technology than in how effectively the entire operation shares and acts upon information.

Technology still depends on people

Despite the industry’s growing digital capabilities, cargo handling remains a physical operation that depends on skilled employees.

Technology can streamline routine processes, improve visibility and help teams prepare for disruption, but it cannot eliminate the need for human judgment.

“Physical activities such as inspections, security screening and the handling of specialist shipments require human judgement and experience,” Lane said.

Major disruptions also rarely follow a standard script. Experienced operational teams must interpret information, assess competing priorities and decide how best to protect service performance.

That makes workforce capability part of the connected facility as well.

The most effective technology supports employees by giving them better information at the right time. It does not replace the operational knowledge required to act on it.

A smarter operation

Taken individually, each development represents an incremental improvement.

Forecasting supports better planning. Cargo iQ milestones provide a clearer view of shipment progress. Mobile devices improve data capture. Connected ULDs strengthen asset visibility. Integrated systems align commercial, warehouse and flight operations.

Together, they point toward a more significant transformation.

The cargo facility is evolving from a collection of separate systems and assets into a connected operational ecosystem.

Booking information informs warehouse planning. Shipment milestones update in real time. ULDs report their location and condition. Operational teams share the same view of changing conditions. Customers receive greater transparency throughout the journey.

The industry’s next competitive advantage may not come simply from moving cargo faster. It may come from understanding what is happening inside the operation before delays occur.

In that environment, visibility becomes as valuable as capacity. Forecasting becomes as important as throughput. Every connected asset, from warehouse systems and mobile devices to ULDs, contributes to a more predictable and resilient cargo network.

For handlers and cargo operators, the future is not simply a smarter warehouse, it's a smarter operation.

About the Author

Jenny Lescohier

Editor-In-Chief Ground Support Worldwide

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