The Digitisation Gap in Canadian Airfreight Is on the Ground

Why It Matters

Improved visibility of RFS can cut dwell times, boost hub throughput and protect cargo margins as jet‑fuel volatility squeezes airline profitability.

Key Takeaways

• Only ~50% of Canadian road feeder cargo is visible in advance
• Air Canada Cargo partners with Pelicargo to digitize 2,000+ trucking partners
• Lack of visibility adds dock delays and higher dwell times at hubs
• Rising jet fuel costs make ground‑leg efficiency a competitive edge
• Full end‑to‑end data standardisation between airlines and trucks remains unfinished

Pulse Analysis

Canada’s vast territory and population concentrated along a narrow corridor from Vancouver to Montreal make road feeder service (RFS) the linchpin of its air‑cargo network. Short‑haul trucks move freight from secondary cities to major hubs such as Toronto Pearson, Vancouver International and Montréal‑Trudeau, where it is loaded onto aircraft for long‑distance legs. Yet, only about half of these movements are entered into cargo‑management systems before arrival, leaving dock planners to rely on PDFs and phone calls. The resulting uncertainty inflates dwell times, hampers slot utilisation and forces airlines to carry hidden operational costs.

The recent integration of Air Canada Cargo with Pelicargo aims to close that visibility gap. Pelicargo, an MIT‑spun digital freight marketplace, connects more than 2,000 domestic trucking partners to the airline’s booking engine, delivering real‑time pricing, capacity data and origin‑based workflow automation. Forwarders can now price and book ground legs as part of a single transaction, aligning with how they think about origin‑destination moves. However, the operational layer still suffers from fragmented transport‑management systems, and full data standardisation between airline platforms and trucking operators remains a work in progress. Successful harmonisation will be key to unlocking end‑to‑end efficiency.

The timing of this digital push is critical. Jet‑fuel prices surged after the Hormuz crisis, prompting Air Canada to suspend its full‑year guidance and highlighting the cost pressure on air‑side operations. As fuel costs climb, the profitability of each shipment increasingly depends on how smoothly the ground leg is executed. Greater RFS visibility can reduce dock bottlenecks, lower handling expenses and improve on‑time performance, giving carriers a competitive edge in a market where speed and reliability are paramount. While Pelicargo’s rollout is a promising first step, a fully digitised Canadian road feeder ecosystem will require industry‑wide collaboration and sustained investment.