US Domestic Air Cargo's Explosive Digitization

Unlocking the Black Box of Domestic Air Cargo: An Exclusive Interview with Carl Shipsky

In the high-stakes world of logistics, time is money and efficiency is king. So, you’d think the U.S. cargo industry would have been fully plugged into the digital age by yesterday. But the digitization pace of the US Domestic Air Cargo industry tells a more complex story.

Not all freight is created equal, especially when you compare different modes of transport. From international versus domestic to air versus ocean, and even within domestic transport itself, the gaps in digitization are striking. Whether it’s cartage, line haul, or LTL versus FTL, each sector operates in its own world. Yet, there hasn’t been a united push to bring these worlds together under a digital umbrella.

But make no mistake, the tide is turning. More players in the industry are beginning to see the tangible benefits of going digital, including enhanced visibility, sharper financial oversight, and smarter decision-making

In our exclusive interview with Carl Shipsky, the Senior Manager of eBookings Growth for North America and Latin America at WebCargo, we dive into the fragmentation of US domestic air cargo, and the tech that’s rapidly transforming the sector.

Decoding the Domestic Air Cargo Landscape Challenge

The domestic air cargo industry is like a complex puzzle, with pieces that sometimes seem to fit together in unexpected ways. One of the biggest challenges? The persistence of old-school booking and rate management methods.

One of the main reasons for the slow adoption of digitization in domestic air cargo is that the old-school methods still work very well, which is why the shift to digital is gradual, but we are turning the corner as the industry begins to see the real benefits of digitization.

Shipsky explains. The contrast between domestic and international air cargo operations is stark, with international processes being more digitized and streamlined. While international air cargo benefits from sophisticated digital platforms and real-time booking systems, domestic operations often rely on traditional methods that still work but lack efficiency.

This difference is largely due to the persistence of old-school practices in the domestic sector, where personal relationships and manual processes (including sometimes still dropping off airway bills in person!) still dominate. However, the shift towards digitization is slowly making its mark, bringing the benefits of real-time capacity visibility, instant eBooking and smarter decision-making to domestic air cargo as well. And that’s where technology comes in.

Leveraging a modern forwarder’s tech. stack to replace antiquated and inefficient booking and rate management methods has become a real differentiator and in fact, an inevitability, in the air cargo industry. Shipsky has witnessed this shift firsthand,

At JetBlue, when we built a customer-facing portal for online booking, it was a challenge to get traction initially. It was a tough sell because the old methods were so entrenched. But over time, we saw the tide turning as customers started to recognize the efficiency and ease that digitization brings. This experience taught me that while change is slow, the eventual shift to digital platforms is inevitable as the industry moves towards more efficient, transparent operations.

The benefits of digitization are undeniable, and real-time pricing, booking, and rate management are just a few perks.

The visibility that digitization provides is transformative. It’s not just about having different modal options, but also about enabling carrier changes based on real-time data. This kind of visibility allows operators to make smarter, more fiscally responsible decisions quickly, optimizing both the profitability of shipments and overall operational efficiency.

Shipsky notes. It’s about making informed pricing, quoting and booking decisions quickly and efficiently…which takes us to dynamic pricing.

Dynamic Pricing: The Future of Domestic Air Cargo

Dynamic pricing is a hot topic in the industry, offering carriers the chance to maximize their yield and capacity. By understanding the nuances of freight movements, carriers can adjust prices in real-time to optimize their operations, and major carriers are already making the shift, indicating a significant trend toward real-time pricing. But it’s not just carriers reaping the rewards – freight forwarders are cashing in too.

Dynamic pricing provides both transparency and flexibility. Forwarders can now see real-time pricing and capacity options, choosing the best fit for their needs, whether prioritizing cost, speed, or reliability. Ultimately, this added visibility leads to more strategic decision-making and better overall efficiency in the supply chain.

The Future of Domestic Air Cargo: Trends and Predictions

Looking ahead, Shipsky sees continuous evolution in the domestic air cargo landscape.

Digitization is arguably the most significant change we’ve witnessed in the domestic air cargo sector. The move towards dynamic pricing models, coupled with ongoing mergers and acquisitions, is reshaping the landscape. These changes are pushing the industry to innovate, offering a blend of value and efficiency that’s becoming the new standard in air cargo operations.

he notes. Dynamic pricing models are gaining traction, and mergers and acquisitions are consolidating the market. Given these changes, Shipsky is optimistic about the industry’s collaborative spirit, as well as the new market dynamics the dynamic pricing models could introduce, including providing a new industry standard. He sums up their wide-ranging impact, as well as the impact of air cargo digitization in general with six words:

A blend of value and efficiency.

For a reasonable cost, you get all your information in one place, with experts managing rates and data, simplifying complex processes and enabling smarter decisions. With real-time air cargo eBooking across airlines representing over 70% of global capacity, it’s a game-changer for the industry, saving forwarders time (over an hour a day on rating and booking air cargo) and unlocking immense value.

The Bottom Line

This industry is evolving rapidly. The world of US domestic air cargo,reveals a landscape where technology for real-time pricing and capacity, instant eBooking, and optimized pricing models aren’t just perks – they’re becoming the new standard. As digitization continues to reshape the industry, forward-thinking forwarders will leverage these powerful tools to make their air cargo booking and management simpler and more efficient, positioning themselves as leaders in the field. to make your operations more efficient, your data more insightful, and your experience more enjoyable.