Taking off: Does Electronic Documentation Make Air Cargo Fly High Again; A systemic appraoch to understanding the complex dynamics of the air cargo system

Abstract

Air cargo carriers used to 'own' the air cargo business. For over a decade though, the air cargo carriers' market share has been growing at lower rates than the air cargo market itself. Despite these difficulties and IATA's efforts to simplify air cargo processes by introducing electronic documentation, most shipments are still accompanied by printed documents - up to 30 and more per shipment. It is the purpose of the research to analyse the dynamics of the air cargo system, which lead to the challenges the air cargo industry is currently faced with. It is analysed, which role the various players of the air cargo system and its environment play and who is driving developments in the air cargo industry. Furthermore it is reflected, to what extent ICT (Information and Communication Technologies), namely electronic documentation for air cargo, impact the air cargo system’s dynamics and whether they can contribute to strengthen the air cargo industry again. Based on a historic review the main players of the air cargo system are identified and the development of their role is described in a first step. Applying a systems theoretic approach the dynamics of the air cargo system are reflected. This analysis reveals that, whilst there is information available regarding the structures of the air cargo system's environment, very little is known regarding the structures within the air cargo system itself and between its players: the freight forwarders, the air cargo carriers and the handling agents. In order to close this research gap, in a second empirical step, structured expert interviews with key players of the entire air cargo system (freight forwarders, handling agents, air cargo carriers, shippers and consignees, IT providers, IATA, customs) were held. Based on these interviews dynamics within the air cargo system are reflected and the impact of electronic documentation on these structures is analysed. The research shows that the use of ICT and particularly electronic documentation are a necessary, but not sufficient step for rendering air cargo profitable again. Instead, it is essential for the players within the air cargo system to redefine their own role as well as their mode of cooperation and communication