When should air cargo industry stakeholders consider API integrations?

As air cargo industry peers seek to enhance efficiency and streamline operations, many are exploring API integrations as a solution.

APIs, or Application Programming Interfaces, allow different software systems to communicate, enabling automation and near real-time data exchange. In airfreight, APIs have empowered players to interact more freely across a broader network of systems, providing users access to far more granular details than previously available. For those unfamiliar with APIs, we recommend checking out our introductory blog on Understanding API Integrations.

This week’s blog will assist readers in evaluating whether API integrations are a valuable investment for their business as well as offering guidance on when to opt for managed platform solutions instead.

Platform vs. API: Which is Right for Your Business?

What is a Platform in Airfreight?

A platform in airfreight is a ready-to-use centralized digital interface that consolidates multiple services, such as airline rate searches, booking, tracking, and shipment management, into a single, standardized interface. The goal is to simplify operations by providing users with easy access to all necessary functions in one place, without requiring extensive technical knowledge.

For example, CargoMART, CargoAi's eBooking platform, offers a user-friendly interface for searching airline schedules, rates, managing shipments, and more.

Conversely APIs, like CargoCONNECT's API Suite, enable businesses to define workflows and the user experience within their own systems, integrate internal systems to external services, through near real-time data exchange across diverse IT environments.

Platform vs. API:

Platforms:

Platforms, such as CargoMART, are often favored by smaller businesses or companies without extensive IT resources or budgets. They are also preferred by those seeking quicker access to digital solutions as part of their digital transformation strategy. These platforms provide straightforward services, like rate searches, booking and tracking options, are user-friendly, and can be accessed immediately after signing in, making them ideal for businesses where customization is not a priority.

Larger companies may also choose platforms when simplicity and faster time-to-market in selected markets or regions are more important than tailored global solutions. In some cases, global forwarders adopt a hybrid strategy, combining platforms and APIs. Here, the platform serves as an initial step in their long-term digital strategy while API integration is developed in parallel.

APIs:

Best suited for businesses that require tailored workflows and deeper integration with systems like TMS or ERP. APIs offer flexibility to pull, use, and integrate data into existing processes, allowing for automation and near real-time updates. While they are more common in larger companies, smaller businesses can also leverage ready-to-use APIs to quickly test their ideas and bring their new offerings to the market in an agile way, without needing extensive custom development.

Are API Integrations Worth the Investment?

API integrations offer significant advantages, but their value depends on your business's specific overall strategy, needs and resources. eBooking platforms like CargoMART may deliver many of the same benefits without the need for the specialized resources required for API implementation.

However, if you're looking to scale or automate more complex operations, APIs can provide customized solutions that reduce operational costs and increase efficiency, ultimately enhancing your bottom line.

In the table below we have summed up the pros and cons of each solution type to help you:

Platforms are easy to understand and test out, so let’s dive deeper into the key points for API integrations to give you a better perspective.

Key Benefits of API Integration

Enhanced Efficiency and Automation
- Streamlined Operations: APIs automate manual processes like the need to repeatedly call or email airlines for rates, bookings, and shipment updates by pulling data from multiple sources into a unified view. This also eliminates the need to switch between platforms for booking, scheduling, and tracking. Overall, it reduces human intervention, minimizes errors, and automated workflows make operations more seamless and efficient.
- Faster Transactions: Automating data exchange and workflows accelerates transactions, reducing delays and speeding up processes like booking confirmations and status updates, leading to quicker processing times.
Near Real-Time Data and Visibility
- Instant Updates: APIs provide near real-time access to critical data, such as shipment statuses, dynamic rates, and instant booking options and confirmations. This transparency improves decision-making and operational planning.
- Proactive Problem-Solving: With near real-time visibility, businesses can quickly identify and resolve issues, such as delays or disruptions, thereby enhancing reliability.
- Improved Customer Satisfaction: Having near real-time visibility also benefits your customers by providing them with timely and accurate information about their bookings and shipments, creating a positive feedback loop and visibility channel.
Cost Savings
- Reduced Manual Labor: As mentioned above, automation via APIs reduces the need for manual data entry and processing, lowering labor costs and allowing your teams to focus on higher-leverage work such as customer service or growing the business.
- Operational Efficiency: Enhanced efficiency leads to cost savings in various areas that come from the reduction of shipment delays, human data-entry errors, and inefficient exception management.
Direct Control Over Data and SOPs
- Consistent SOPs: When using multiple sources of data or manual points of contact, inconsistencies can arise and cause confusion from data ambiguity and errors. API integrations provide access to all systems via a single platform with a unified view, allowing businesses to implement SOPs that align with their workflows.
- Informed Decisions: System integration in the air cargo industry unlocks vast amounts of data, providing visibility and transparency. Access to near real-time and historical data supports analytics, driving improvements in revenue management, trade lane analytics, forecasting, pricing, and more.
Scalability and Flexibility
- Adaptability: APIs provide the flexibility to pull and use data however your business needs, allowing you to integrate it with existing processes or other systems seamlessly. This adaptability lets you scale operations and add new services as your business grows—something a platform alone cannot offer.
- Futureproofing: As technology evolves, APIs enable businesses to adopt new tools, platforms, or integrations quickly, customizing how data is processed and used across your systems. This ensures your business remains competitive and agile in a changing environment, offering a level of flexibility that static platforms cannot match.
Competitive Advantage
- Innovation: Embracing APIs allows businesses to leverage cutting-edge technologies and innovate faster than competitors.
- Market Responsiveness: APIs enable quicker adaptation to market changes, helping businesses stay ahead in a rapidly evolving industry.

We have talked about the benefits of API, its evolution through the years and various applications and use cases of APIs in airfreight. However, despite their benefits, implementing APIs in airfreight presents challenges that can impede adoption.

Challenges of implementing API integrations in the Airfreight Industry

Data Fragmentation: Multiple stakeholders—airlines, freight forwarders, and ground handlers—contribute to fragmented data sources. The lack of standardized data formats and communication protocols adds to this challenge.

Legacy Infrastructure: Many existing systems are outdated and incompatible with modern API technologies. These systems also often struggle to meet the demands for real-time data processing, leading to network strain and potential downtime. However, making upgrades or migrating systems are costly and time-consuming.

Significant Upfront Investment: API integration requires financial and resource investments, as well as thorough analysis and adaptation of company processes to manage new data flows.

System Requirements: A robust TMS or ERP system is crucial for seamless integration. Businesses must also decide whether to manage API integration in-house or engage external experts based on their IT team's capacity, since an IT team is needed to develop and maintain integrations, workflows and automation.

Resistance to New Technologies: Companies often hesitate to adopt new technologies due to perceived risks and costs, opting to maintain traditional methods instead of investing in new systems that require changes and training.

Embracing the Future of Air Cargo with API Integration

API integration can revolutionize air cargo operations, offering not only operational efficiencies but also a competitive edge. The decision to invest should be based on a thorough assessment of your business's size, needs, and IT capabilities. As the air cargo industry continues to evolve digitally, staying informed about API technology is crucial for maintaining competitiveness and meeting customer expectations.

Stay tuned for our next two blogs on choosing the right integration strategy. We will explore Ready-to-Use vs Direct Integrations and Point-to-Point vs. Middleware APIs.

For more information about CargoCONNECT, CargoAi’s API suite, download our brochure or contact our Support team.