ARTIFICIAL
INTELLIGENCE
THOUGHT
CONTROL
Early applications of artifi cial intelligence in the air cargo sector are whetting the
appetite for more, writes Ian Putzger.
Air Canada Cargo is
deploying a new
tool powered by
artifi cial intelligence (AI)
that is boosting its capacity
utilisation. Over the past year
the airline has experimented
with artifi cial intelligence to
get a better handle on the
gyrations of available space
as the clock ticks down to a
fl ight’s departure.
No-shows and late
cancellations have been a
perennial headache for carriers,
and forwarders showing up
with less (or more) cargo than
booked have been an equal
source of frustration. In most
cases the end result has been
a take-off with less than the
planned load for those fl ights.
AC Cargo has used AI to
scrutinise the ups and downs
of usable capacity, putting
the entire process under the
microscope from various
angles – per day, per route, per
commodity and per customer
– while looking for discernible
patterns.
The exercise revealed that
85% of bookings are made
during the fi nal week, but
cancellations and reductions in
booked volume occur within
that period at 60% of the
rate of bookings, resulting in
a considerable gap that was
traditionally lost.
Tim Strauss, Vice President
Cargo, notes that some
customers show up nearly half
the time with less or more cargo
than they booked. “Universally,
it’s 4% or more,” he adds.
By leveraging AI and the insights gained from the scrutiny, Air
Canada has been able to optimise its loads. Strauss says that this
can improve load factors by 6-8%.
However, he stresses that the purpose of the exercise is not
to punish forwarders for coming up short, as they often have
no control over what is coming their way from the shipper.
“It allows us to say to a customer that we can take 4,800
kilogrammes from them instead of cutting them off at the 4,000
kilogrammes they booked. This gives them a better opportunity
in their market,” he says.
AI is now being adopted in the air cargo industry. “The hype
and fear around it of a few years ago is ending. Now people
realise it’s productive and we’re seeing deployment,” observes
Ben Gesing, Senior Innovation Manager, Trend Research, at DHL.
“People are getting productive with it.”
AI: riding the wave
Other industries are well ahead, though. The technology and
media sectors are leading the charge, with the banking industry
not far behind. Some physical industries, like the automotive
segment, have also made large strides, he notes. However, in
terms of strategic importance of technologies that the logistics
industry is looking at, AI is at the top, he remarks.
www.airlogisticsinternational.com April 2020 33
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