Aviation Anthology Vol 1 2026 - Digital Version - Flipbook - Page 33
Cargo is getting smarter, but is that a good thing?
Overview
Smart ULDs are being introduced in an effort to improve
management and efficiency in air cargo handling.
However, their use raises important questions around
carrier liability, legal and financial exposure, and the
balance of risk throughout the supply chain. This article
examines some of the benefits and risks involved in their
adoption.
What are ULDs?
Unit load devices (ULDs) refer to the standardised pallets
and containers designed for the loading and offloading
of cargo, mail and baggage onto aircraft in a timely and
cost-effective manner. ULDs enable carriers to minimise
turnaround times by streamlining pre-flight preparation
and optimising fuel spend by loading the aircraft in the
most efficient manner.
ULDs are also expensive. According to the International
Air Transport Association (“IATA”), there are currently
around 1 million ULDs deployed by cargo carriers with
a total replacement value of approximately US$1bn.
The total annual cost associated with the repair and loss
of ULDs is also estimated at US$330m, which excludes
other related costs such as aircraft damage, delays and
cancellations caused by ULD operations.[1]
Additionally, ULDs are subject to airworthiness and
safety regulations as they are classified as aircraft parts.
Their use (or abuse) and condition can impact the
ability of an aircraft to remain in service. Unlike other
aircraft parts, they regularly leave a carrier’s control and
pass through a web of handlers – many of whom are
unregulated – making their location and maintenance
difficult to manage.
Enter smart ULDs
In an effort to combat the problems faced with regular
ULDs, smart ULDs emerged in the late 2010s with
widespread adoption accelerating after 2020. They
contain sensors which collect and transmit real-time data
about an individual ULD such as its location, shock or
Aviation Anthology 2026 - Volume I
impact events and the internal and external environment
(including temperature, humidity and light exposure).
They have been designed with the intention of enabling
carriers to better manage their ULD fleet depending
on demand and capacity by minimising dwell times,
improving stock reporting and reducing overall ULD
fleet size.
They also provide carriers with greater control over
critical shipments such as pharmaceuticals, perishables
and dangerous goods, with better data to identify
causes of delay, loss of or damage to cargo or aircraft.
So, what’s the catch?
Despite these benefits, smart ULDs may prove to be
a double-edged sword for air carriers and ground
handlers.
O Easier to defend? On the one hand, smart ULDs
enhance visibility and traceability, helping carriers to
investigate and where appropriate to defend claims.
Typically, a shipper or freight forwarding agent is
responsible for the packaging and protection of
their cargo which may include placing temperature
and humidity recorders or shock and vibration
sensors inside the cargo to record the conditions of
shipment.
For example, in the case of pharmaceutical cargo, a
shipper might insert a temperature recorder inside of
the packaging in order to monitor the temperatures
inside of the shipment during transit. Improper
packing by the shipper or their agent might cause
the temperatures inside of the packaging to increase
disproportionately to the temperatures outside of the
cargo which may be within the carrier’s control. Smart
ULDs may provide carriers with the data to counter
these claims, where they can demonstrate that any
temperature excursions were a fault of the packaging
rather than any errant handling by the carrier or their
agents.
DAC Beachcroft
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