• Skip to main content
  • Skip to primary sidebar

Ad – Bottom Content

Air cargo and RFID – A smart way to keep “freight” moving forward?

Payload Asia

Leaderboard

  • Home
  • Latest News
  • Channels 
    • Carriers
    • Aircraft Manufacturers
    • Airports
    • Courier & Mail
    • Freight Forwarders
    • Express
    • Ground Handling & Cargo Terminals
    • Logistics
  • 9th Payload Asia Awards
  • Awards & Conferences 
    • 9th Payload Asia Awards
    • Gallery
    • About
    • Rules and Regulations
    • Categories
    • Vote Now
    • Subscribe
  • Subscribe
  • Advertise
  • More 
    • Event Calendar
    • Directory
    • Contact Us
Share

Air cargo and RFID – A smart way to keep “freight” moving forward?

July 1, 2007 by Payload Asia

The RFID (Radio Frequency Identifi – cation) technology gets more and more common in our everyday life. Applications in passports for a better identifi cation of its owner or simple transport payments such as collecting tolls and within mass transportation show only asmall area.

Meanwhile in some cases RFID technology is implemented for more than ten years now. So not in the air cargo business, where besides some local solutions or smaller pilot projects for test purposes still no major application exists. But the air cargo demand for the next 20 years is a growing one with annual rates about 6 percent, studies of the two largest aircraft manufacturers Airbus and Boeing show. As a result the cargo market is seen more serious even by traditional passenger airlines with no special freighters such as Virgin Atlantic. As a result, the strong market growth generates a higher competition pressure and new cost-benefi t-sharing models and efficient logistic procedures are required to survive in that environment.

One example is the linkage between cargo airlines in the strategic alliance WOW or its counterpart Skyteam Cargo. Overall airlines and freight forwarders are dealing with a higher business complexity and variance. The RFID technology considerably contributes to handle these upcoming challenges.

Current RFID applications within the airline business are mostly limited to baggage handling and identifi cation. So far, the read rates have been all well above 99 percent. Barcode read rates can be as low as 67 percent on bags traveling down a conveyor, as has been shown in several projects at the University of Karlsruhe (Germany). That is because bar codes can be torn, soiled or covered by luggage ID tags.

Applied to the air cargo environment, this means that, due to high chip prices, a full labeling of all transported goods with RFID tags, is still not affordable. A midterm solution might be the mounting of RFID chips on airfreight containers or ULDs. The analysis of a pilot run by Air Canada Cargo in Toronto and Miami showed a 100 percent read rate, even under high-volume and great diversity of cargo contents.

For carriers it is now crucial to get more information about the conditions during the transport. But RFID sensors do not only identify shipped goods, they also identify potential damages caused by heavy vibrations, cold and heat, humidity or unauthorised door openings. Such smart containers are also currently in pilot run at freight forwarding agent Schenker, which uses multi-purpose sensors at sea freight containers on its Hong Kong – Hamburg route. The container tag will be automatically registered at points where liability changes hands (Change of Custody – CoC). An analysis of this pilot run indicates so far that RFID technology helps to increase visibility at interfaces.

Additionally, various freight agents with different services are involved, who also work with different data types. But for an effi cient usage of RFID related data, data must be received and exchanged by all partners within the whole supply chain. For example, airline staff and customers will be able to track and trace shipments thru common internet applications down to an ULD level, if the ULD is provided with RFID technology.

This offers a new higher transparency between logistic providers and airline carriers, which guarantees a quicker customs clearance. The implementation of RFID systems supports also an accelerated un/loading process and reduces the risk of incorrect loadings, since many identifi cation operations are automated by passing the ID gantry.

Overall, the labour required to identify shipments can be reduced and the whole warehouse effi ciency increases, because of a better use of automated stacking equipment as well as quicker transfer times thru the warehouse and in truck acceptance/dispatch for road feeder services. With a better knowledge of inventories, the RFID technology provides greater control and allows the carrier to manage cargo more easily. The entire handling process of using RFID equipped ULDs is shown in figure 1. The key is a close linkage between the data processing centres of shipper and carrier to ensure proper data exchange thru the shipping fl ow.

Airlines also profi t from using RFID technology, because of a much better container management capability. Larger cargo airlines such as Lufthansa and Air France lose 5 to 6 percent – and a high three-digit million US dollar loss – of their ULD inventory each year due to break-downs in ULD tracking facilities. The last location of missing ULDs can be traced with RFID and loss claims can be better attributed to its origin. Most important is the ability to manage location awareness; the right container at the correct airport facility to meet daily fl ight schedules and airline requirements. RFID helps significantly to reduce the station stock and increases the availability of ULDs. Therefore a lowering in ULD purchases is possible.

One problem that occurs by upgrading the RFID technology from a pilot status, is the lack of standards and integrated systems amongst carriers. That is why current solutions do not integrate the entire supply chain. Because of the high mobility, battery life and power needs will become a critical factor as much as device reliability and out-of-service time. All this increases the device costs and 23 million units need to be outfi tted for a world-wide standard solution.

Despite the fact that high RFID equipment prices might be a deterrent, our review shows that the ROI (Return on Invest) was short-term in most pilot projects. The value received was instant, because the visibility of inventory enabled a clear comparison of goods recorded with the actual physical inventory. Obviously, more specifi c information can be put on a chip than on a barcode, but without a full network and industry-wide standards, the RFID tag is more an addition than a barcode replacement. The proven ability to obtain cargo information quickly and easily, and to trace and track goods with accuracy, is a huge advantage to any air cargo carrier.

The next big step, using the pilot projects as a door-opener to daily operation, will greatly enhance data value when integrated in an airline’s business system, which also generates a long-term ROI.

Alexander C.H. Skorna (Schenker (Asia Pacifi c) Pte Ltd) and Dr. André Richter (Institute for Conveying Technology and Logistics – University of Karlsruhe)

Other Topics: Air & Cargo Services, air cargo, Air Cargo Asia, air cargo freight, Air Forwarding, air freight, Air Freight Asia, Air Freight Logistics, air freighter, air freighting, Air Logistics Asia, Air Shipping Asia, airlines cargo, airways cargo, asia cargo news, cargo aviation

Related Articles

  • FedEx adds Asia-Europe capacity with new PEK-CDG route
  • IATA’s new North Asia head returns to Beijing
  • Vietnam’s IPP Air Cargo targets September launch
  • CEVA Logistics opens new warehouse in the Philippines
  • Cainiao boosts parcel services to Pakistan and Bangladesh
  • Hong Kong extends HK$7.8b bridge loan to Cathay

Ad – After Content

Primary Sidebar

Ad – Uppper Boombox

Trending News

  • Cargolux inks long-term support deal for future fleet GE Aerospace and Cargolux have entered into a long-term... 62 views | posted on January 26, 2023
  • Silk Way West eyes Japan with Nippon Express Silk Way West and Nippon Express have signed a memorand... 29 views | posted on January 26, 2023
  • Passengers soar as cargo dwindles at HKG in 2022 Cargo saw a 26.4 percent drop to 351,000 tonnes in Dece... 15 views | posted on January 25, 2023

Payload Asia Awards

  • Top players reunite at the 9th Payload Asia Awards Top executives and well-renowned companies in the air c... by PLA Editor | posted on November 1, 2022
  • 9th Payload Asia Awards set on 28 October The 9th edition of the Payload Asia Awards will be held... by PLA Editor | posted on August 29, 2022
  • Air cargo takes spotlight at 8th Payload Asia Awards Winners of the prestigious Payload Asia Awards were ann... by PLA Editor | posted on October 5, 2021
  • Payload Asia Awards A toast to excellence, resilience at 7th Payload Asia Awards More than 60 industry professionals attended the digita... by PLA Editor | posted on January 22, 2021

Subscribe To
Our Newsletter


Select list(s) to subscribe to


By submitting this form, you are consenting to receive marketing emails from: Harvest Information Pte Ltd, 150 Orchard Road #07-05, Singapore, 238841, http://www.payloadasia.com/, https://tva.onscreenasia.com/. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Payload Asia continues to be the authoritative source for informative, accurate and up-to-date news and information on the air cargo industry and related sectors.
With its updated and refreshed look the print edition continues to provide high quality coverage on the Asia-Pacific, India-Middle East, Europe-CIS, North & South America and Africa air cargo markets.

© 2021 Harvest Information. All rights reserved. Privacy Policy

Partner Sites : Asia Food Journal . Asia Food Journal China . Control Engineering Asia . Control Engineering China . Electronics Manufacturing China . Pharma Asia . Pharma Asia China . Logistics Insight Asia

We use cookies and similar technologies to improve your browsing experience.
Continuing to use this site means you agree to our use of cookies. I agreeRead More
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non Necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.

Analytics

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.

Performance

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

Advertisement

Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.

Save & Accept

1