The Future of Air Cargo: Embracing the e-commerce surge

Published: Wednesday, September 18, 2024

Trapid growth of cross-border e-commerce is transforming the air cargo industry. In 2017, ecommerce accounted for just 10% of total air cargo volume; by 2022, this had doubled to 20%, and it is projected to reach 25% by 2027. As a result, airlines are now generating 18% of their revenue from e-commerce, a figure that is expected to rise in the coming years. This growth demands that airlines, in collaboration with airpo􀆱s and other key players, evolve into modern service providers capable of meeting the ever-increasing expectations of e-commerce consumers.

Consumers expect the same speed, predictability, and visibility from cross-border transactions as they do from domestic ones. The pressure to meet these demands is intensified by the standards set by industry giants like Amazon, which offer same-day and next-day deliveries. Cargo Community Systems (CCS) play a crucial role in this transformation. By integrating all stakeholders—airlines, forwarders, customs, and ground handlers—into a unified platform, CCS streamline air cargo e-commerce operations. This enhanced coordination leads to faster deliveries, reduced errors, and improved tracking at piece-level, all critical for satisfying e-commerce customers. In addition to speed, sustainability has become a critical factor, particularly for younger consumers who prioritize green logistics practices. The air cargo industry must therefore focus on enhancing operational efficiency through digitisation. Streamlining processes and improving customer relationships are essential first steps. As the sector embraces these changes, it will be better positioned to handle the future growth of e-commerce and maintain its vital role in the global supply chain.