Digitizing ULD Management – Air Cargo Week

For decades, unit load devices (ULDs) have been an incredible but often overlooked cost of air freight. Pallets and containers transport goods around the world, but airlines often lose track of them, rent extra units, or pay to replace empty equipment. In a sector under pressure from rising oil costs, capital pressures and demand volatility, inefficiencies are becoming increasingly unacceptable.
The industry is finally starting to treat ULDs not as passive devices but as data-rich assets, says ACL Air Shop CEO Bernard Kendelbacher. “What we can do is ‘IoT-ise’ the platform – make sure it tells us where it is, and then use predictive analytics so the right platform is in the right place, in the right state,” he told Air Cargo Weekly. He told Air Cargo Weekly. “Airlines and management can use this information to make operations more efficient and faster, and ultimately better serve customers.”

From manual tracking to predictive management
Despite Air Cargo’s digital ambitions, much of ULD’s management guidance remains. Airlines rely on spreadsheets, phone calls and ground-breaking records to determine where their inventory is or isn’t. This delay costs money.
“One important issue is whether we have the data in the right format,” said Kindle Baker. “We still use a lot of manual processes, but real-time action isn’t enough. Sharing information across the chain increases efficiency in every process, while also providing transparency and insight to the next partner.”
The case for change is simple. An airline that makes the mistake of using ULD units must either lease additional units at short notice or purchase new ones. In any case, capital is tied up unnecessarily. Improper handling can cause flight delays, creating hazards for aircraft on the ground. By pursuing digitization, carriers gain the ability to return pallets more quickly, improve network planning, and reduce lease costs and operational risks.

Examples from the field
ACL Airshop has worked with carriers who face exactly these challenges. “Usually when we work with airlines, we see that they have boards around in multiple terminals and they don’t know exactly where they are,” explained Kindle Baker. “With our technology, we can identify the location, we can bring it home quickly, and display the inventory. It reduces costs – you don’t have to rent extra panels or buy new ones – and you also reduce aircraft accidents on the ground.”
The company has invested in IoT-enabled devices that transmit real-time location and status data. These tools, which include predictive analytics, provide early warnings when a unit is needed elsewhere or is at risk of being stranded. The result is a shift from reactive ULD management to proactive planning.
An industry-wide challenge
Kindelbacher places ULD management in the broader fight to digitize air freight. While platforms and visualization tools have advanced in booking, pricing, and shipment tracking, the ground layer still lags behind. “We still use a lot of manual processes,” he stressed. “Progress could be that we all share data with each other in the chain, not only to increase efficiency in our operations, but also to give transparency and insight to the next partner.”
This collaboration remains difficult in a fragmented ecosystem where ground handlers, airlines, leasing companies, and repair providers all use different systems. But the pressure is on. Rising fuel costs, rising interest rates and capital costs are forcing airlines to siphon off all available savings overseas.
“Innovation has to be practical,” Kindlebacker said. “It’s about solving real problems – misplaced ULDs, high rental costs, inefficiencies in repairs. These are things that affect airlines, and this is where digitization can have an immediate impact.”
The potential is great. The value of lost or missing ULDs is estimated at approximately $55 million (5 percent of the world fleet). However, many times that amount is spent on searching, retrieving, locating, and locating; In some cases, revenue transfers must be left behind.
Digitizing ULD management is not glamorous, but it is necessary. Without accurate, real-time visibility into assets, the rest of the industry’s digital ambitions are at risk of failure.
“It’s about collaboration across the ecosystem,” he said. “If information is shared properly, everyone benefits—efficiency increases, costs decrease, and customers receive better service.”