Market Trends of Air Freight Industry
Growing Demand For The Air Freight Market
The air cargo industry is the backbone of global trade, facilitating the transportation of goods and interconnecting companies worldwide. In recent years, there has been a dramatic surge in air cargo due to the growth of the global economy, evolving consumer preferences, and technological advancements. Cross-border trade is the primary driver behind the current market growth, which is expected to accelerate further in the coming years. The demand for swift and efficient international shipping intensifies as global trade escalates.
In August 2023, China's Shenzhen Bao'an International Airport (SBI) experienced a twofold increase in cross-border e-commerce from January to July, anticipating further growth in the remaining five months after including freighter flights in the airport's operations. SBI successfully managed 93,000 tons of international e-commerce in seven months, marking a 101% increase compared to last year.
Partner airlines Central Airlines and YunExpress introduced a second Boeing 777 freight flight in late July, a move anticipated to bolster cargo volumes significantly. This additional freighter aims to expand the airlines' service from three to six weekly flights connecting Shenzhen and Paris.
April 2023 witnessed the introduction of new features in digital air cargo marketplaces, allowing logistics companies overseeing imports to promptly book export shipments from agents in other countries. This development eliminates the previously time-consuming process of sourcing quotes via phone or email.
Cargo.One announced an upgrade targeting easier booking for freight forwarders seeking overseas bookings with partners, eliminating the need for a third party to execute the booking.
WebCargo, a part of the Freightos companies, disclosed that air freight wholesale distributors in China can now sell space directly to freight agents, akin to airline partners.
Third-party platforms, exemplified by CargoAi, enable airlines to vend their capacity in a unified platform, empowering forwarders to compare live rates and availability while electronically booking shipments, similar to how travelers shop for air seats, hotels, and rental cars online using platforms like Kayak and Priceline.
E-commerce Growth Creating Great Opportunities For The Air Freight Industry
The explosive surge of e-commerce during the pandemic rendered its future trajectory unpredictable. This online shopping phenomenon has become a global norm as consumers worldwide embrace the convenience of digital transactions. IATA reports that 80% of international e-commerce relies on air transport, significantly streamlining cross-border shopping with enhanced efficiency, security, and transparency. Projections anticipate a substantial expansion in the e-commerce sector, potentially soaring to USD 4.4 trillion by 2026.
Logistics, widespread mobile device ownership, and marketplace expansions are pivotal factors that fuel this anticipated growth. Moreover, this expansion is not confined solely to new regions but encompasses areas where online shopping has already entrenched itself, underscoring the crucial role of logistics. The air cargo industry, boasting global networks, adaptable capacity, and digitalization initiatives, stands well-equipped to bolster e-commerce growth. These initiatives promise to augment operational efficiency and shipment visibility throughout transit.
As the global e-commerce landscape burgeons, strategic partnerships, cutting-edge technologies, and robust infrastructures will dominate the air cargo arena, ensuring visibility, flexibility, and swiftness at each journey stage. Delta Cargo announced in February 2024 that it launched a new product called DeliverDirect, developed jointly with SmartKargo. With various service innovations enabling customers to modify their preferences, the DeliverDirect offer can meet shippers' specific needs.
