United Cargo and CargoAi Partnership Advances Air Cargo Digitalization

United Cargo and CargoAi Strategic Partnership: Advancing Digital Transformation in Global Air Freight Operations

The September 24, 2025 announcement of a strategic partnership between United Cargo and CargoAi marks a significant milestone in the digital transformation of the global air freight industry. This collaboration directly integrates United Cargo’s extensive domestic and international capacity into CargoAi’s digital platform, granting more than 23,000 freight forwarders access to real-time rates, bookable capacity, and eBooking capabilities across numerous international markets. The partnership exemplifies the sector’s accelerating shift toward digital connectivity and automation, addressing longstanding inefficiencies in traditional cargo booking processes and positioning both companies at the forefront of airfreight digitalization efforts.

As the air cargo industry navigates rapid technological evolution, this partnership reflects a broader movement toward integrated, data-driven logistics. By enabling streamlined, automated interactions between Airlines, freight forwarders, and digital platforms, United Cargo and CargoAi are helping to reshape how global supply chains operate, increasing transparency, efficiency, and responsiveness in a competitive marketplace.

Partnership Architecture and Technical Integration

The United Cargo and CargoAi partnership establishes a comprehensive digital framework that transforms how freight forwarders access and book air cargo capacity. United Cargo’s domestic and international capacity is now available through CargoAi’s platform, where over 23,000 freight forwarders can access real-time rates, bookable capacity, and eBooking services for General Cargo and Express services. This move from manual booking processes to automated, data-driven solutions significantly enhances operational efficiency and customer experience.

The integration spans key markets, including the United States, Canada, Ireland, the United Kingdom, Belgium, the Netherlands, France, Switzerland, Germany, Spain, and Portugal. Such broad coverage increases flexibility and access for freight forwarders while creating new opportunities for airlines and digital platforms to streamline processes and improve operational efficiency.

A central feature is the CargoMART Interline module, which automates interline booking with real-time capacity checks and instant e-bookings. This reduces manual communication and accelerates transactions, addressing persistent inefficiencies in traditional air cargo operations. The CargoMART Interline module, already adopted by multiple carriers, supports seamless API integration across more than 100 airlines, providing a standardized, efficient approach to interline bookings without requiring significant IT infrastructure investments.

Capacity booking is enabled through both the CargoAi marketplace and direct connections with leading Transport Management Systems (TMS), supporting greater visibility and automation across multiple channels. This dual-channel approach offers flexibility for various operational preferences and ensures the platform can accommodate diverse workflow requirements among freight forwarders and logistics providers.

“By combining United Cargo’s global reach with our technology and Interline capabilities, we are building a foundation for a more agile, transparent, and customer-centric airfreight industry, ready to meet the demands of tomorrow’s supply chains.”, Matthieu Petot, CEO of CargoAi

Corporate Backgrounds and Market Positioning

United Cargo, the freight division of United Airlines, leverages a global network of over 4,500 daily flights across six continents. It transports a broad range of commodities, pharmaceuticals, perishables, e-commerce goods, and Cargo-Aircraft parts, using advanced handling processes and digital tools to ensure seamless delivery throughout the supply chain. United Cargo’s integrated trucking network further extends its reach to key regional and last-mile markets.

United Airlines’ cargo operations have shown strong financial performance. In Q2 2025, United reported cargo revenue of $430 million, a 3.8% increase year-over-year. The airline transported 327 million pounds of cargo in this period, including approximately 9.8 million pounds of medical shipments and over 440,000 pounds of military shipments. For the first half of 2025, cargo revenue reached $859 million, up 6.7% from the previous year. These figures underscore United Cargo’s significant market position and the strategic importance of its cargo division.

CargoAi, founded in 2019 and headquartered in Singapore, has rapidly emerged as a leading digital enabler in air cargo. The company provides a comprehensive ecosystem of digital solutions for procurement, payment, and Sustainability initiatives. In 2025, CargoAi received the “Solution Provider of the Year” award from Air Cargo Week, reflecting its leadership and innovation in the industry. Its product suite includes CargoWALLET, a freight payment solution supporting payments to over 150 countries in 47 currencies, addressing critical pain points in international freight operations.

“This collaboration with CargoAi reflects our shared commitment to making air cargo booking more accessible, efficient, and transparent.”, Helen Kristensen, Vice President, United Cargo SIGMA+ Team

Industry Context and Digital Transformation Trends

The air cargo industry has undergone significant transformation in the past decade, driven by globalization, technological innovation, and evolving customer demands. Despite its scale, air cargo has historically lagged behind passenger aviation in digital maturity. Recent years, however, have seen rapid catch-up through initiatives like Electronic Air Waybill and adoption of advanced digital platforms.

The COVID-19 pandemic accelerated digital transformation, highlighting the need for agility and real-time data sharing. The growth of e-commerce has further fueled demand for efficient, transparent supply chains, while sustainability goals push for digital solutions that reduce carbon footprints and optimize operations. Airlines now transport over 62 million tons of cargo annually, representing approximately $8.3 trillion in goods. The global air cargo market was valued at $186.24 billion in 2025, with North-America holding over 40% of global revenue. The market for air cargo services is projected to reach $114.9 billion by 2034, growing at a CAGR of 7.3%.

Digital transformation is tackling inefficiencies such as underutilized cargo capacity and incomplete data. Studies reveal that only 27.5% of shipments had accurate declared cargo volume, and on average, 24.8% of space per flight was underutilized. Digitalization of cargo handling has demonstrated significant capacity optimization and operational improvements, including a 33.75% reduction in cargo build-up operation times and a 23.6% increase in usable cargo space.

“The air cargo industry has changed significantly over the past decade, driven by globalization, technological innovation, and evolving customer expectations.”, Henk Mulder, Head of Digital Cargo, IATA

Technological Innovation and Automation Impact

Artificial intelligence (AI) and machine learning are revolutionizing air cargo operations, from routing optimization to demand forecasting and capacity management. AI-powered systems learn from historical data, enabling more accurate predictions than traditional methods. Routing platforms now analyze shipment ready times, driver availability, lockout times, aircraft capacity, and customer preferences in real time to select the most efficient routing options.

Generative AI is emerging as a powerful tool for optimizing airline efficiency in cargo operations, particularly in forecasting demand for spare parts and maximizing cargo capacity. By predicting demand patterns, airlines can strategically plan shipments, minimize overstocking, and ensure critical parts availability, freeing up valuable cargo space for high-margin goods.

Blockchain technology is also being adopted to enhance transparency and real-time supply chain visibility, while advanced tracking and monitoring systems improve cargo security and customer satisfaction. The development of cold chain logistics and data analytics applications further enhances efficiency and responsiveness in air cargo.

Market Dynamics and Competitive Landscape

The freight forwarding technology landscape is evolving rapidly. Nearly all freight forwarders now use technology solutions, and over 60% have increased technology investments in the past decade. However, many solutions remain siloed, with continued reliance on legacy tools like Excel and manual processes, leading to moderate satisfaction with digital tools.

eBooking platforms for air cargo have seen a surge in adoption post-pandemic, with nearly 70% of global capacity now bookable on third-party platforms, up from just 10% at the end of 2019. Despite this progress, only about one-third of forwarders use Rate Management Systems, and many still rely on manual methods for managing freight rates.

CargoAi’s CargoMART Interline solution addresses these inefficiencies by digitizing and automating interline capacity checks and e-bookings, enabling airlines to optimize revenue and scale partnerships more effectively. This digital approach is increasingly seen as essential for industry competitiveness and operational excellence.

“With CargoMART Interline, airlines can scale their partnerships effortlessly, maximize revenue, and prepare for a new era where forwarders can directly book interline capacity.”, Matthieu Petot, CEO, CargoAi

Financial Implications and Revenue Optimization

Digital transformation in air cargo offers substantial financial benefits. United Airlines’ cargo revenue reached $430 million in Q2 2025, a 3.8% increase year-over-year, with the first half of 2025 totaling $859 million, up 6.7%. IATA forecasts cargo revenue for member airlines to reach $157 billion in 2025, representing 15.6% of total airline revenues, up from 12% in 2019.

Capacity optimization through digital solutions has shown that, on average, 24.8% of space per flight was underutilized, with 16.4% viable for additional cargo. Implementing digital planning tools has led to a 33.75% reduction in cargo build-up operation times and a 23.6% increase in usable space, demonstrating direct bottom-line benefits.

The integration of payment solutions such as CargoWALLET adds further value, enabling secure, instant payments in 47 currencies across 150+ countries. This addresses longstanding friction points in international freight operations and supports the creation of a comprehensive digital ecosystem for freight forwarders and airlines.

Global Market Context and Regional Implications

The United Cargo and CargoAi partnership operates within a diverse global air cargo market. North America leads with a market size of $74.5 billion in 2025, projected to grow at 3.2% CAGR. The U.S. accounts for $58.8 billion, driven by manufacturing, perishables, and e-commerce. Europe follows, holding over 30% of global revenue, with key markets including the UK ($9.4 billion), Germany ($11.1 billion), and France ($5.1 billion).

The Asia-Pacific region, with $42.8 billion in 2025, shows the highest growth potential. China leads with $19.3 billion and 6.5% CAGR, while India demonstrates an 8.8% CAGR. The partnership’s current focus on North America and Europe positions it well for potential future expansion into high-growth Asian markets.

Global air cargo volume is expected to reach 80 million tons in 2025, a 5.8% increase from 2024. Demand remains strong, supported by ocean shipping delays, tight freighter capacity, and robust cross-border e-commerce. The ratio of freighter to belly traffic has stabilized, but demand for dedicated widebody freighters exceeds capacity due to production delays, making digital optimization tools even more valuable.

Technological Standards and Industry Transformation

The industry is moving toward standardized digital solutions that enable seamless integration and data sharing. IATA’s ONE Record standard creates single-record views of shipments, increasing visibility among stakeholders. Such standardization underpins integrated platforms like CargoAi, which offers API integration across over 100 airlines.

The modular nature of digitalization allows organizations to transition gradually from manual operations to fully digital ecosystems. Technologies like RFID, data loggers, and IoT-based tracking are increasingly used, supporting more sophisticated optimization and planning.

As more airlines and forwarders adopt digital standards, the value of integrated platforms grows, creating network effects and sustainable competitive advantages for early adopters and comprehensive solution providers. Partnerships like United Cargo and CargoAi are at the center of this transformation.

Future Outlook and Strategic Implications

The United Cargo and CargoAi partnership represents a strategic positioning for the future of air cargo operations. Its focus on automation, real-time data sharing, and integrated booking aligns with broader trends toward platform-based business models and ecosystem collaboration.

The partnership could serve as a template for similar collaborations, accelerating digital transformation across the industry. The expansion of digital interline booking, comprehensive payment solutions, and measurable operational improvements could drive further adoption of such platforms, creating a more efficient, transparent, and customer-centric air cargo ecosystem.

Conclusion

The strategic partnership between United Cargo and CargoAi stands as a pivotal moment in the digital transformation of global air cargo. By integrating United Cargo’s network with CargoAi’s advanced platform, over 23,000 freight forwarders gain access to real-time rates, automated booking, and streamlined interline operations across key North American and European markets.

This collaboration exemplifies the industry’s shift from manual, fragmented processes to integrated, data-driven solutions that optimize capacity, reduce costs, and enhance service. As the sector continues to evolve, partnerships like this will likely become templates for broader transformation, creating a more efficient and responsive global air freight ecosystem.

FAQ

What is the significance of the United Cargo and CargoAi partnership?
The partnership integrates United Cargo’s capacity into CargoAi’s digital platform, providing over 23,000 freight forwarders with real-time rates and automated booking capabilities, marking a significant step in industry digitalization.

What markets are covered by this partnership?
The partnership covers the United States, Canada, Ireland, the UK, Belgium, the Netherlands, France, Switzerland, Germany, Spain, and Portugal.

How does the CargoMART Interline module benefit the industry?
It automates interline booking, reducing manual communication and transaction times, and supports seamless API integration across more than 100 airlines.

What financial impact does digital transformation have on air cargo?
Digital transformation improves capacity utilization, reduces operational costs, and increases revenue, with United Airlines reporting $430 million in Q2 2025 cargo revenue.

What are the future implications for the air cargo industry?
Continued digitalization and automation are expected to create a more efficient, transparent, and customer-centric air cargo ecosystem, with increasing adoption of integrated digital platforms.

Sources: United Cargo Press Release, CargoAi