Air Cargo and RFID

By Alexander C.H. Skorna and André Richter

RFID sensors not only identify shipped goods, they can also detect potential damage caused by heavy vibrations, cold and heat, humidity or unauthorized door openings; addressing the latter, in particular, is important to preventing theft loss or terrorist attacks. Such smart containers are also currently being tested in a pilot run by freight-forwarding agent Schenker, a Deutsche Bahn subsidiary, which uses multi-purpose sensors at sea-freight containers on its Hong Kong-to-Hamburg route (see Schenker Pilots RFID to Secure Cargo Shipments).

Container tags can be automatically registered at points where liability changes hands (change of custody, or COC). By accumulating this date, a carrier can offer a complete reconstruction of transport conditions in the event of loss or damage. An analysis of this pilot, so far, indicates RFID technology helps to increase visibility at interfaces considerably. The different types of transport units used makes global logistics highly complex, while the diverse freight agents involved provide different services and work with different data types.

André Richter

For RFID-related data to be used efficiently, it must be received and exchanged by all partners within the entire supply chain. If ULDs were provided with RFID technology, airline personnel and customers would both be able to track and trace shipments through common Internet applications, down to the ULD level. This would offer higher transparency between logistics providers and airline carriers, ensuring quicker clearance through U.S. customs. The implementation of RFID systems could also help accelerate loading and unloading processes, and reduce the risk of improper loadings, since many identification operations are automated by passing the ID gantry.

Overall, better use of automated stacking equipment could reduce the labor required to identify shipments and increase warehouse efficiency, while also allowing for quicker transfer times through the warehouse, and in truck acceptance and dispatch for road feeder services. By enabling a better knowledge of inventories, RFID technology provides greater control and enables carriers to manage cargo more easily. (Click here for a diagram illustrating the handling process using RFID-equipped ULDs.) A close linkage between the data-processing centers of shippers and carriers is key to ensuring proper data exchange through the shipping flow.

In addition, airline carriers could profit from the improved container-management capability RFID technology offers. Each year, larger cargo airlines such as Lufthansa and Air France lose 5 to 6 percent of their ULD inventory—amounting to hundreds of millions of dollars in loss—due to breakdowns in their ULD tracking-facilities. The last-known location of a missing ULD could be traced with RFID, and loss claims could be better attributed to the points of origin. This could reduce the staff time needed to trace ULD equipment and lower insurance risks. Most important would be the ability to manage location awareness and make sure the right container is at the correct airport facility to meet daily flight schedules and airline requirements. RFID could also help significantly reduce station stock and increase ULD availability, reducing the purchase of new ULDs.