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Digitalization could disrupt air cargo industry: CE Global GSA

THE Chief Excutive of Global GSA Group, Ismail Durmaz says there could be winners and losers as digitalization's role in air cargo develops.

Speaking to London's Air Cargo News, Mr Durmaz says digitalization will disrupt the industry, but it's not yet clear which part/s will be impacted, and how.

"We don't know what digitalization will do to the supply chain. We don't know whether it will harm something or will break down something in our industry."

"Are we going to be having less business or is the forwarder going to lose some profits? I think we will know it within a maximum two-three years."

According to Mr Durmaz, one of the biggest challenges that digitalization brings is the impact of increased transparency.

If all the stakeholders involved in a particular business activity know the prices being paid by each business it adds a new layer of complexity, he points out.

"Transparency can kill your business or it can make it. In the short term, transparency means lots of changes."

Many companies are still suspicious of the changes digitalization is bringing to the industry, Mr Durmaz stresses.

He says one of these concerns is that companies will grow to become dependent on technology.

"Companies are concerned about control by portals. Because first they use you - you are part of it. So you bring them up, you make them big, but then it's like drugs, then you need them to stay alive."

However, while he says further digitalization is inevitable, the industry won't be receptive to technology that doesn't offer clear benefits. "The e-bookings portals have to show that they have added value as well. So it's not it's not a done deal."


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