Glenn Shires, secretary general of FEDAGSA, has pinpointed how the role of the cargo  GSA and GSSA will evolve in the next decade, particularly in terms of integrating new technologies for booking and tracking.

He says: “Service is the real skill in this business and new tech is actually just another tool coming in and to be successfully utilised.  It will be utilised by participants but it really doesn’t provide “service” as we have repeatedly seen IT companies all have their own “platform” most of which simply market rates which were hardly ever  a secret but do have the negative consequence of depressing airline yields as the platform is a race to the bottom.”

With the the emerging trends in outsourcing within the air cargo market, how is the Total Cargo Management (TCM) model impacting this trend?

Shires says: “Our airline industry is literally now built on outsourcing and it will not change. Tech use is rising as it should. Airlines we see are also outsourcing part of the compliance management they are now required to undertake. TCM is a “user chooser” option for carriers. Depending on the existing internal capabilities of the carrier, new starts can / should use TCM but it’s definitely not an all embracing solution really.”

The importance of yield

As service remains a critical differentiator, what innovative approaches are GSA/GSSAs adopting to enhance service quality and customer satisfaction? Shires is clear: “Ah , I think the best thing to say here is ‘yield’. “ He adds in a manner: “Dear carrier you will make more yield with GSSAs.”

The trend of moving away from all-in platforms to tailored technology solutions will affect the competitive dynamics among air cargo service providers. “So much so that the federation created its own free window tricargo.aero allowing the service element to be delivered.”

Digital transformation

In what ways are GSA/GSSAs leveraging digital transformation to improve their efficiency and reliability in connecting forwarders with carriers? Shires says: “As above, we ended up building our own genuinely neutral ‘window’ tricargo.aero – please don’t mistake it for a platform.”

What impact do new market entrants and skilled participants have on the traditional roles of GSA/GSSAs and the overall air cargo ecosystem? “We will always have entrants and leavers. The market is dynamic and should be praised for being so,” Shires notes.

How do financial guarantees provided by GSA/GSSAs, like those under the FEDAGSA umbrella, influence trust and risk management in the air cargo industry?

“When the banks were all collapsing 2008, being rescued by governments if you recall, FEDAGSA needed to keep our members capable of guaranteeing the carriers. We did so and now our members are safe for an airline to use. Remember IATA CASS does not guarantee the airline their money. Our members do.”

What is the future of interline arrangements in air cargo, and how can GSA/GSSAs further innovate to create new routes or services? Shires considers that interlines provide more reach so that is always a good thing in the market. “We even have our own air waybills so our members can then set these up promptly and serve the forwarders’ needs,” he says.

Surplus of space and low rates

When there is a surplus of space and low rates, how can GSA/GSSAs create value for forwarders and airlines in a competitive pricing environment?

“Value is in the eye of the beholder,” he says. “Service and rate for the forwarder. Profitable decent yield business for the airline. That’s what our members do daily. Remember, our members represent their carrier and the platforms represent its owner’s interests. Not always the same.”

What role will artificial intelligence and machine learning play in the decision-making processes and operations of GSA/GSSAs in the near future? Shires is confident in the future. He says: “A role for sure but precisely what remains to be seen.  Machine learning will take the donkey work out for sure eventually but iconoclastic AI I haven’t seen yet. Everything is just derived or copied.”

GSA/GSSAs preparing for the potential disruptions and challenges brought by global economic shifts, regulatory changes, or geopolitical tensions need only look back at the Covid time.

“If Covid was a first test then we are proven extremely flexible and innovative. In the airfreight industry the most agile are the GSSAs closely followed by the forwarders. New entrants are welcomed and supported by FEDAGSA.  We go out of our way to nurture them, as they could well be our future!”

How might the emphasis on service quality reshape partnerships and collaborations between forwarders, carriers, and GSA/GSSAs in the next five years?

“It is already doing so. However remember whilst collaboration can be great for service it  but can go too far too quickly . Recognising competition is imperative to a good market and proper choice for shippers,” notes Shires.

Membership of the Swiss-based FEDAGSA stands at around 277 currently.

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