Tracking shipping information used to be a major pain in the neck. For parcels, a shipper would fax an inquiry to the freight forwarder, who would have to call the airline to obtain the whereabouts of the package. Then, hours later, the forwarder would fax back the update to his customer.
Now, thanks to the Internet, up-to-the-minute data is a mouse-click away.
“The goal nowadays is to expedite the interface between the shipper, carrier and customer. The better, easier flow of cargo improves everybody’s lives,” said Jim Jackson, chairman of the technology committee for the International Air Cargo Association.
From simple tracking to wireless access to cargo bookings, the industry is pushing to offer quicker, smarter processing capabilities as it is being pushed by customers to offer more services.
“There’s a tremendous demand on the part of our customers to make services easier to use,” said David Fonklasrud, a spokesman for DHL Worldwide Express, a Redwood City-based air shipping firm.
Interactive services
United Parcel Service and Federal Express Corp. have been at the forefront of technology-driven improvements. As far back as 1995, when the Internet was still a curiosity, FedEx put tracking operations on the Web, and UPS followed four months later.
Now, those companies offer e-mail, information on drop-off center locations, quick cost calculations and maps that show shippers where their package is located at a given time. Last December, UPS got 2.5 million tracking requests in a single day.
By comparison, the commercial airlines have lagged behind. Most airline Web sites can only track one package at a time. And those sites can’t provide a delivery history or re-routing options.
“It’s true that combination carriers (both passenger and cargo) have focused on the passenger side in the past,” said Keola Pang-Ching, director of cargo operations at Alaska Airlines. “They have had the resources to do so, but I think carriers are now trying to expand their offerings.”
In an effort to catch up, 36 carriers and freight forwarders formed Cargo 2000, a consortium that will look to deliver air freight door to door within 48 to 72 hours. But there has been bickering on various operational matters.
“I would have to say this is a disappointment to the industry,” said Robert Dahl, project director at Seattle-based Air Cargo Management Group, an aviation consulting firm. “It remains to be seen what the group will do. They haven’t been forthcoming about the issue, but cost could be a concern.”
Tools for small businesses
Meanwhile, companies like Huntington-Beach-based Freightgate are offering online tracking information that allows a customer to follow a package’s travels even if it goes through two or more airlines.
“This provides a small to medium-sized business the same tools as huge air freight forwarders,” said Steve Hair, vice president of sales and marketing for Primary Freight Services, a freight forwarder in Rancho Dominguez.
Another new wrinkle is the addition of online auctions. Freightgate’s Marketplace service allows shippers, carriers and freight forwarders to quote rates online.
If a freight forwarder has a customer such as a retailer who wants to ship 20 cartons of shoes in 24 hours to New York, the forwarder can put out the job on these Internet sites and wait for the best price from shippers.
“Instead of calling 15 people to get a good rate, you go to the site and get a response in a matter of minutes,” said Klaus Meister, president of freight forwarder Master Logistics International in Los Angeles.
Some express concern that forwarders will be squeezed out of the business as carriers and shippers link up directly, though Hair says that “service provided by carriers is not (as good as that provided by) forwarders. Just like other businesses are rethinking the way they do things to stay competitive in the Information Age, we are too. At one time, we used to provide only documents. Now we’re consultants providing our expertise on how a package gets from London to Compton, from pick-up to delivery.”
As technology evolves, other advances are waiting in the wings.
DHL is working on software that will project landed costs, or taxes and tariffs imposed by foreign customs authorities. Such fees change on a regular basis and cause headaches for international shippers, who may have products returned because of higher-than-anticipated costs.
Many airlines are tooling up to allow cargo to be booked online. (United already has such a service.) “We’re hoping to offer this later this year,” said Alaska’s Pang-Ching. “By not having to call an 800 number, it will reduce phone calls for us and save time for our customers.
