Delivering the key drivers of the shipper, consignee, or BCO
Speed, transparency, quality, and compliance – at the lowest unit cost – are what airlines, airports, and all air cargo stakeholders, need to be competitive, says Stan Wraight, president and CEO of consultancy SASI World
For the past few years, we have been focusing on building capabilities on the ground at airports and advising airlines on end-to-end solutions – to be ready for what we have identified as key drivers of what the BCO (Beneficial Cargo Owners), or shippers or consignees, want, demand and need. This extensive global research and contact with the actual BCO revealed that speed, transparency, quality, compliance – and all at the lowest piece-level unit costs – were needed to be competitive. Scheduled passenger/cargo combination carriers and major all-cargo airlines with a global footprint have access to the fastest way of transporting goods, and that's point-to-point direct air services. But that advantage cannot be leveraged if the ground operations – and all that's associated with delivering speed, transparency and quality – is not available.
How have you and your clients been navigating the current and recent changing air cargo market dynamics?
We find the greatest inability, or reluctance, to accept needed adaptions to either strategy, or operations, are caused by (airports or airlines that have) no dedicated cargo VP; or a non-recognition of the value of air cargo to their passenger client base; or the legacy airports are just severely constrained in either space, or so congested not much is possible. This has led to airports that don't have those constraints being more proactive and engaged in change management. The awareness within airlines after Covid that air cargo is a critical core business is there; but it does not seem to have flowed down to the large legacy airports' CEOs, even though airlines are now having their cargo departments accompany them to events such as the Routes network when decisions are made on where to fly.
How have customers' requirements and expectations been evolving, and how are you responding to that?
Airlines are actively looking to refocus and introduce product portfolios to stay relevant, as the traditional distribution channels – forwarders – struggle themselves, as consolidations are no longer viable in a world of smaller packages and increasing consumer demand for speed and transparency like they get via online shopping sites. Amazon did not want to be an airline, but to be competitive they had to create one. If the airlines and airports, GHAs – and digital solutions providers to tie all that together – had been available, they would have used it. SASI World has set about creating a 'virtual integrator' capability model to solve all this.
What are the biggest challenges currently to meeting customers' requirements and expectations?
Global air logistics has a huge problem with the siloed systems and approaches we have. Airlines, GHAs, forwarders, and digital service providers are self-serving, of course, as they have shareholders and profitability to care about. This leads to attempts at individual USPs versus competitors in the same silo, on the same airport. Unfortunately, we also assume IATA (an airline silo) can solve issues – which it cannot, and never will. So, private industry must solve its own issues, think beyond their own disciplines, and see what's out there that will help. I can give you one example: Air Cargo Community Systems (ACCS) on airports – a huge benefit, but airports are reluctant or refuse to mandate this. Why? Because they react as landlords renting real estate, not a contributor to helping the airlines succeed in introducing higher-value verticals on their airports.
The use of an ACCS for GHAs, as one example, will reduce the dwell time of air cargo in the warehouse from days to hours, which means less real estate needed, and more cargo can be handled annually per sqm. This goes well beyond truck-slot management: an ACCS offers so much more for the whole community, such as last-mile, customs, agriculture, banking, etc.. For airports, it gives valuable information for infrastructure planning, road congestion issues, etc. – information they do not have otherwise. All of this, and many other factors, should mean mandatory ACCS – to help the true clients, the airlines and the customers who depend on them, to succeed in products that demand speed, transparency, and quality, at the best cost possible.
How do you expect recent changes to de-minimis rules in the US and Europe to influence air cargo flows and demand in 2026?
If you have a proper digital solution as an airline, 'de minimis' or 'no de minimis' cargo can be expeditiously handled. Will this affect demand? Only if the e-retailer's all-inclusive price (including any tariffs) is more expensive than shopping on the 'main street'. But never forget the convenience factor of e-commerce; and also, the main street shop is also paying the tariffs on whatever they sell you. My opinion is that it's an irritant, but will not change anything, as markets adjust.
One last thing: Let's not get hung up on what the USA does – the world is bigger than that. The 'de minimis' in Canada, where I live, has been $20 for years, and e-commerce flourishes here – there are regular 747Fs arriving in Canada; and also, the world of e-commerce is global.
How will your clients be responding in 2026 to evolving needs linked to things like: new technology and its application; process improvements; cargo community systems; or any other developments related to improving efficiency or productivity, and standardising or digitalising air cargo and cargo handling?
For airlines and airports, SASI World works by understanding where things must go, and we are developing solutions through our new entity, e-Smart Group – which includes e-smartavia.com and e-smartlogistics.com as options for them. Individual carriers such as the LH Group with Heyworld, and Emirates SkyCargo with Emirates Courier Express, are there because both carriers understand what the BCO wants and are reacting. And many other airlines and airports are moving; but they are the exception rather than the rule.
Digitalisation took a setback during Covid but is back on track, primarily for safety and security reasons, but also for trade facilitation. Witness the UN-Cefact Multimodal Digital Corridor initiative which is now with ICAO, and individual countries' demands – for both safety and economic reasons – for much more data to be supplied, for customs clearance reasons.
What other factors are key in companies' development plans, decisions and investments, for 2026 and beyond?
Revenue and margin improvement is possible for all stakeholders in the air cargo logistics market through existing technology, which can be obtained on a transactional basis: you just need to know how an end-to-end solution can be achieved, giving you that USP – of a provider who meets the aforementioned criteria for speed, transparency, quality, compliance, at the most competitive unit cost possible. The airlines, airports and other stakeholders that understand this will be the successful companies, going forward.
What initiatives are you prioritising for 2026?
Further enhancement of the e-commerce and high-value product offered by our group company e-smartlogistics.com is paramount. The addition and preparation for our investment in the all-electric air cargo CTOL Beta aircraft, for delivery first quarter of 2027, is also underway now; and working with the airlines and airports where we will anchor those services are also priorities in 2026. SASI World itself will focus on helping our clients be fit for purpose in what the BCO want, and grow and prosper as a consequence.
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