Submitted Successfully!
To reward your contribution, here is a gift for you: A free trial for our video production service.
Thank you for your contribution! You can also upload a video entry or images related to this topic.
Version Summary Created by Modification Content Size Created at Operation
1 -- 1201 2023-12-02 11:42:31 |
2 update references and layout Meta information modification 1201 2023-12-04 03:10:23 |

Video Upload Options

Do you have a full video?

Confirm

Are you sure to Delete?
Cite
If you have any further questions, please contact Encyclopedia Editorial Office.
Adenigbo, A.J.; Mageto, J.; Luke, R. Air Cargo Logistics Industry in South Africa. Encyclopedia. Available online: https://encyclopedia.pub/entry/52277 (accessed on 19 June 2024).
Adenigbo AJ, Mageto J, Luke R. Air Cargo Logistics Industry in South Africa. Encyclopedia. Available at: https://encyclopedia.pub/entry/52277. Accessed June 19, 2024.
Adenigbo, Adedotun Joseph, Joash Mageto, Rose Luke. "Air Cargo Logistics Industry in South Africa" Encyclopedia, https://encyclopedia.pub/entry/52277 (accessed June 19, 2024).
Adenigbo, A.J., Mageto, J., & Luke, R. (2023, December 02). Air Cargo Logistics Industry in South Africa. In Encyclopedia. https://encyclopedia.pub/entry/52277
Adenigbo, Adedotun Joseph, et al. "Air Cargo Logistics Industry in South Africa." Encyclopedia. Web. 02 December, 2023.
Air Cargo Logistics Industry in South Africa
Edit

The air cargo logistics industry is part of the services offered in the aviation sector. The industry fulfils a segment of the supply chain system for the seamless distribution of goods to meet consumers’ demands.

technological innovations air cargo technological adoption

1. Introduction

This study defines air cargo as goods carried by aircraft, whether chartered or commercial, under customs-bonded airway bills. Many scholars, such as [1], have referred to air cargo as a by-product of passenger traffic, where airlines traditionally load cargo into the belly holds of their passenger aircraft. Air cargo operation is observed as an efficient means of transportation because of its capacity to handle high-valued and time-sensitive goods [2][3]. However, the turn of global events resulting from the COVID-19 pandemic and the booming e-commerce demand have reshaped the outlook of the air cargo logistics industry for the future. The International Air Transport Association [4] emphasised how e-commerce accelerates transformation in the global air cargo logistics industry with 15% of volume in 2019 and 18% of total retail sales in 2020.
Ref. [5] compared cargo volume for February 2019 with February 2018 and stated that the air cargo industry experienced a weakened demand, with a fall of 4.7%. Ref. [5] also reported that the air cargo market capacity increased by 2.7% yearly. The record shows that it was the slowest annual growth rate in three (3) years. In contrast, other studies had anticipated that air freight volumes would continue to increase by around 3% annually until 2025 and likely after 2030 [6]. According to [7], air cargo traffic will increase by 4.3% annually for the next 20 years.
Recent technological advances are poised to impact air cargo operations for efficient supply chain management to ensure the seamless distribution of goods with automated coordination of air cargo flow. For stakeholders in the logistics industry, digitisation with ICT and IoT is becoming unavoidable [8] for seamless supply chain operations in air cargo distribution. The requirement to adopt new technological innovations has prompted severe concerns for stakeholders in the air cargo logistics industry. The concerns border on the reluctance for the prompt adoption and implementation of emerging innovations in the industry due to the cost of technological acquisition and negative attitude to change. Nevertheless, the impact of technology on industries worldwide cannot be overemphasised. Its influence is highly significant to have transformed how companies conduct their businesses. The air cargo industry is no exception, as emerging technological innovations are fast becoming major driving forces. Thus, stakeholders in the air cargo logistics industry are under severe pressure to digitise their current operations to remain relevant due to the increasingly widespread technological innovations [4].
Notwithstanding, the reluctance to adopt and implement emerging technological innovations in the air cargo logistics industry prevails [9]. As a result, the air cargo industry is often lamented as lagging in digitisation behind passenger air transport [10]. The air cargo industry is slow to adopt digitisation to modernise distribution although technological applications are required for data and cargo management systems across all distribution stages [11][12]. Similarly, ref. [13] stated that adopting new innovative technologies continues to be slow and less than optimal across organisations. The traditional human behaviour to resist change [14] and the huge cost of acquiring new technologies account for the attitudinal reluctance of air cargo stakeholders to adopt and implement new technological innovations promptly.

2. Effects of Technological Applications in the Aviation Logistics Industry

The logistics industry is broad, with studies focusing on the need to apply technological applications in different aspects of operations such as RFID adoption [15], technology forecasting framework [16], inventory management [17], humanitarian logistics [18], digital marketing [19], digitisation [20], automation of warehousing [21][22], supply chain management [23], and [24] explored the implications of adopting industry 5.0 for smart logistics, etc.
In the aviation sector, most studies focus on the effects of technological innovations on airline operations. For example, ref. [25] found that technologies significantly influence air transport’s safety, efficiency, capacity, capability, environment, and financial outlook. Ref. [26] also found that digital technology applications impact airline operations by enhancing passengers’ flight experience. Ref. [27] stated how technological innovations have helped reshape the aviation industry by making it more efficient, safe, sustainable, and agile. Ref. [28] examined the effects of innovative technologies to provide comfortable, smart, and safe air travel in Asia. The passengers’ perception of technological innovation and adoption during the COVID-19 pandemic was assessed by [29] in China and emphasised the effects of technological adoption on improved airline service delivery.
For the air cargo industry, there is a scarcity of studies focussing on the problems of adopting technological innovations in the air cargo logistics industry. However, studies have also emphasised the effects of technological innovations in handling and distributing cargo. For example, ref. [30] stated that emerging technological innovations have become an important part of cargo delivery for integrating supply chain operations due to globalisation. Ref. [31] affirmed that technological applications in air cargo supply chain management serve as a digital solution to simplify distribution processes. Ref. [32] also highlighted the effect of applying digital technologies in the cargo shipping business. The effect of applying blockchain technology in utilising airport resources for optimal service delivery was identified by [31]. Information technology infrastructure can provide a platform for all agents in the air cargo industry to collaborate online for service delivery [12].
Specifically, empirical studies that relate technological innovations and their effects on air cargo operations are lacking in South Africa. It implies that researchers in South Africa have not considered the benefits of the air cargo industry to the country’s development. Ref. [33] recently examined the effects of 4IR technologies adoption in the South African airline industry on the dynamics in the labour markets. Also, ref. [34] examined the surviving strategies of the South African airline industry with the adoption of smart technologies. The studies were devoted to the airline industry and imply the need to fill a knowledge gap about the effects of adopting technological innovations in the air cargo logistics industry in South Africa.

3. The Air Cargo Industry in South Africa

The air cargo industry in South Africa is versatile and contributes substantially to the growth and development of the country. South Africa has the United Arab Emirates, United Kingdom, Kenya, Qatar, and Germany as the busiest air cargo routes [35]. The air freight industry in South Africa generated a huge sum of 5.1 billion Rands in 2016 to contribute substantially to the country’s economic growth [36]. In 2021, the South African air cargo industry had a total revenue of USD 0.2 billion [37]. South African airports’ cargo traffic ranked second after Egypt in the African continent [38]. Three (3) major implications for the air cargo industry in South Africa are: 1. there is major air trade and exchange between South Africa and other countries in Asia, Europe, and within the African continent; 2. the air cargo industry significantly contributes to the annual revenue and growth of South Africa; and 3. South African air cargo traffic is substantial for trade and exchange in Africa.
The implications indicate the importance of the air cargo logistics industry to economic development. It also shows the connectivity of the distribution of goods across the world’s continents for global trade facilitation. It finally reflects the importance of cargo traffic to airport and airline operations. The implications provide the need for studies that focus on the air cargo logistics industry in South Africa, as it not only contributes to the country’s development but also influences the global trade relationship and promotes airports and airline operations.

References

  1. Merkert, R. Air Cargo Logistics: The Dawning of a Golden Decade? In Global Logistics and Supply Chain Strategies for the 2020; Merkert, R., Hoberg, K., Eds.; Springer: Cham, Switzerland, 2023.
  2. IATA. What Types of Cargo Are Transported by Air? 2022. Available online: https://www.iata.org/en/publications/newsletters/iata-knowledge-hub/what-types-of-cargo-are-transported-by-air/ (accessed on 28 June 2023).
  3. IATA. What to Know About Air Cargo Handling. 2022. Available online: https://www.iata.org/en/publications/newsletters/iata-knowledge-hub/what-to-know-about-air-cargo-handling/ (accessed on 28 June 2023).
  4. IATA. A New Era for Air Cargo How E-Commerce Is Accelerating Logistics Transformation. 2021. Available online: https://www.iata.org/contentassets/cbf5c1736ee34466b88264fface2d6ff/executive-summary---web.pdf (accessed on 13 July 2023).
  5. IATA. Air Freight Market Analysis. 2019. Available online: https://www.iata.org/en/iata-repository/publications/economic-reports/air-freight-monthly-analysis---feb-2019/ (accessed on 13 July 2023).
  6. Galea-Pace, S. How Technology Is Transforming Air Freight. 2020. Available online: https://supplychaindigital.com/technology/how-technology-transforming-air-freight (accessed on 15 February 2023).
  7. JetFreight. Welcome to the Future Air freight: 6 Trends Changing the Face of Air Freight Industry. 2022. Available online: https://www.jfll.com/6-trends-changing-the-face-of-air-freight-industry/ (accessed on 13 July 2023).
  8. Barreto, L.; Amaral, A.; Pereira, T. Industry 4.0 implications in logistics: An overview. Procedia Manuf. 2017, 13, 1245–1252.
  9. Government of India. Air Cargo Logistics in India, 2012. Working Group Report. Ministry of Civil Aviation, Government of India. Available online: https://www.eiciindia.org/frontSite/MOCA%20WORKING%20GROUP%20ON%20AIR%20LOGISTICS%20REPORT.pdf (accessed on 15 February 2023).
  10. Harper, L. Has Air Cargo Embraced Digitalisation during Its Moment in the Sun? 2022. Available online: https://www.flightglobal.com/airlines/has-air-cargo-embraced-digitalisation-during-its-moment-in-the-sun/150905.article (accessed on 13 July 2023).
  11. Siapartners. Can Digital Transform the Air Cargo Industry? 2018. Available online: https://www.sia-partners.com/en/insights/publications/can-digital-transform-air-cargo-industry (accessed on 14 July 2023).
  12. Zhang, A.; Hui, G.W.; Leung, L.C.; Cheung, W. (Eds.) IT Infrastructure Needs of the Air Cargo Industry. In Air Cargo in Mainland China and Hong Kong, 1st ed.; Routledge: Milton Park, UK, 2004.
  13. Richter, F.-J.; Sinha. Why Do Your Employees Resist New Tech? Harvard Business Review. 2020. Available online: https://hbr.org/2020/08/why-do-your-employees-resist-new-tech (accessed on 13 July 2023).
  14. Ajay, L. How Innovation-Led Digitalisation Revitalised the Air Cargo Industry? 2022. Available online: https://www.stattimes.com/air-cargo/how-innovation-led-digitalisation-revitalised-the-air-cargo-industry-1346371 (accessed on 4 February 2023).
  15. Wang, Y.B.; Lin, K.Y.; Chang, L.; Hung, J.C. A Diffusion of Innovations Approach to Investigate the RFID Adoption in Taiwan Logistics Industry. J. Comput. 2011, 3, 441–448.
  16. Kwon, K.; Jun, S.; Lee, Y.-J.; Choi, S.; Lee, C. Logistics Technology Forecasting Framework Using Patent Analysis for Technology Roadmap. Sustainability 2022, 14, 5430.
  17. Mashayekhy, Y.; Babaei, A.; Yuan, X.-M.; Xue, A. Impact of Internet of Things (IoT) on Inventory Management: A Literature Survey. Logistics 2022, 6, 33.
  18. Khan, M.; Khan, M.; Ali, A.; Khan, M.I.; Ullah, I.; Iqbal, M. Digitalization for Fast, Fair, and Safe Humanitarian Logistics. Logistics 2022, 6, 31.
  19. Ullah, I.; Khan, M.; Rakhmonov, D.A.; Bakhritdinovich, K.M.; Jacquemod, J.; Bae, J. Factors Affecting Digital Marketing Adoption in Pakistani Small and Medium Enterprises. Logistics 2023, 7, 41.
  20. Melesse, T.Y.; Franciosi, C.; Di Pasquale, V.; Riemma, S. Analyzing the Implementation of Digital Twins in the Agri-Food Supply Chain. Logistics 2023, 7, 33.
  21. Min, H. Smart Warehousing as a Wave of the Future. Logistics 2023, 7, 30.
  22. Tikwayo, L.N.; Mathaba, T.N.D. Applications of Industry 4.0 Technologies in Warehouse Management: A Systematic Literature Review. Logistics 2023, 7, 24.
  23. Romagnoli, S.; Tarabu’, C.; Maleki Vishkaei, B.; De Giovanni, P. The Impact of Digital Technologies and Sustainable Practices on Circular Supply Chain Management. Logistics 2023, 7, 1.
  24. Jafari, N.; Azarian, M.; Yu, H. Moving from Industry 4.0 to Industry 5.0: What Are the Implications for Smart Logistics? Logistics 2022, 6, 26.
  25. Hansman, R.J. The Impact of Information Technologies on Air Transportation. AIAA, 2005, AIAA-2005-0001. AIAA Aerospace Sciences Conference, Reno, 10–13 January 2005. Available online: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.455.8075&rep=rep1&type=pdf (accessed on 23 February 2023).
  26. La, J.; Bil, C.; Heiets, I. Impact of digital technologies on airline operations. Transp. Res. Procedia 2021, 56, 63–70.
  27. Pereira, B.A.; Lohmann, G.; Houghton, L. Technology trajectory in aviation: Innovations leading to value creation (2000–2019). Int. J. Innov. Stud. 2022, 6, 128–141.
  28. Soonthodu, S.; Wahab, I.N.; Hassan, A. Technology Application Usage in Aviation Industry in Asia. In Handbook of Technology Application in Tourism in Asia; Hassan, A., Ed.; Springer: Berlin/Heidelberg, Germany, 2022; pp. 313–341.
  29. Shiwakoti, N.; Hu, Q.; Pang, M.K.; Cheung, T.M.; Xu, Z.; Jiang, H. Passengers’ Perceptions and Satisfaction with Digital Technology Adopted by Airlines during COVID-19 Pandemic. Future Transp. 2022, 2, 988–1009.
  30. Orozonova, A.; Gapurbaeva, S.; Kydykov, A.; Prokopenko, O.; Prause, G.; Lytvynenko, S. Application of smart logistics technologies in the organization of multimodal cargo delivery. Transp. Res. Procedia 2022, 63, 1192–1198.
  31. Poleshkina, I. Blockchain in Air Cargo: Challenges of New World. In Proceedings of the MATEC Web of Conferences 341, 00021. The VII International Scientific and Practical Conference “Information Technologies and Management of Transport Systems” (ITMTS 2021), Orel, Russia, 18–19 May 2021.
  32. Plomaritou, E.; Jeropoulos, S. The digitalisation in chartering business: Special reference to the role of e-bill of lading in the bulk and liner markets. J. Shipp. Trade 2022, 7, 28.
  33. Habiyaremye, A.; Monaco, L. 4IR Technology Adoption in the South African Airline Industry: Diffusion Patterns and Labour Market Effects. 2023 SARChI Industrial Development Working Paper Series WP 2023-04. SARChI Industrial Development, University of Johannesburg. Available online: https://www.uj.ac.za/wp-content/uploads/2021/10/sarchi-wp-2023-04-habiyaremye-a--monaco-l-april-2023.pdf (accessed on 28 July 2023).
  34. Habiyaremye, A.; Monaco, L.; Perumal, S.; Tregenna, F. The South African Airline Industry: Surviving through Smart Innovation? 2023 Policy Brief PB 2023-03. Available online: https://www.uj.ac.za/wp-content/uploads/2021/10/sarchi-id-pb-2023-03-habiyaremye-a--monaco-l--perumal-s--tregenna-f--march-2023-1.pdf (accessed on 26 June 2023).
  35. IATA. The Importance of Air Transport to South Africa. 2021. Available online: https://www.iata.org/contentassets/a1f674a2687144d9ad5298d2d4e3f7bf/iata_south-africa_report.pdf (accessed on 28 July 2023).
  36. Statistica. Income from Air Transport Services in South Africa in 2013 and 2016, by Type. 2023. Available online: https://www.statista.com/statistics/1074612/income-air-freight-transport-storage-industry-south-africa/ (accessed on 28 July 2023).
  37. Research & Market. South Africa Air Freight Market Summary, Competitive Analysis and Forecast, 2017–2026. 2022. Available online: https://www.researchandmarkets.com/reports/5650878/south-africa-air-freight-market-summary#:~:text=The%20South%20African%20air%20freight,kilometers%20(FTK)%20in%202021 (accessed on 28 July 2023).
  38. Hajjar, B.; Kaitouni, O.D. Success Factors for developing Air cargo in African Markets. In Proceedings of the International Conference on Industrial Engineering and Operations Management, Paris, France, 26–27 July 2018; Available online: https://www.ieomsociety.org/paris2018/papers/468.pdf (accessed on 28 July 2023).
More
Information
Subjects: Management
Contributors MDPI registered users' name will be linked to their SciProfiles pages. To register with us, please refer to https://encyclopedia.pub/register : , ,
View Times: 337
Revisions: 2 times (View History)
Update Date: 04 Dec 2023
1000/1000
Video Production Service