Market Trends of Colombia Freight and Logistics Industry
This section covers the major market trends shaping the Colombia Freight & Logistics Market according to our research experts:
Growth in Airfreight Volume Driving the Market
Colombia consolidated its fresh take-off to revive its skies and enhance its international connections in 2021, after seven months of aviation immobility due to the pandemic in 2020. This was attributed to the introduction of new operators and the activation of a large number of routes. In the region, the country has become a leader in aviation reactivation. According to the Director of the Aerocivil, 625,000 metric tons of air cargo were handled in the country in the first nine months of 2021, largely through the Bogota airport.
According to data from the Ministry of Transportation, a total of 14,047 flights were flown between March 2021 and August 2021, transporting 276,646 metric tons of cargo on commercial airlines and those dedicated solely to the logistics sector. The statistics show that international freight accounts for 80.8% (223,709 metric tons), while domestic cargo accounts for 19.1% (52,937 metric tons). With mobilized volumes of 220,709 metric tons, 32,017 metric tons, and 5,555 metric tons, respectively, the airports of Bogota, Rionegro, and Barranquilla stand out. During the pandemic, a major portion of the items moved by plane to and from the country was related to medical supplies and priority health units.
Growth in E-commerce
The rise of e-commerce will have a direct impact on Colombia's air freight industry's resurrection in 2021. Colombian online sales climbed by 44.3% between January and March 2021, according to the Colombian Chamber of Electronic Commerce. Sales through online channels climbed by 59.4% in 2021 compared to the same period in 2020, totaling USD 9.9 billion. With over 91 million online sales transactions reported in April, May, and June 2021, a remarkable rise over the same quarter in 2019 and 2020, when this figure was 28 and 52 million, respectively, the ongoing expansion of online sales means that more people are opting to purchase online. These rates are projected to climb since events like Cyber Monday and Hot Sale, which held their first annual edition in 2021 and reported sales of over COP 825 billion, have encouraged e-commerce in Colombia.
Colombia's population has steadily risen over the last two decades, rising from a little over 39 million in 2000 to more than 49 million in 2020. More economic stability and a growing middle class, together with around 60% of Colombians having access to the internet and the influx of new entrepreneurs, have aided in the growth of the country's e-commerce market. In 2020, Colombian e-commerce revenues will total COP 29 trillion (USD 8 billion). When both sales and payments were made online, a 30% increase was observed over the COP 22.2 trillion reported in 2019. E-commerce in Colombia has risen at a weekly rate of 7.84 % since the lockdown began. Between June and July 2020, the most significant rise occurred in the sectors of home, technology, retail, fashion, and beauty.
