WEEKLY NEWS


THE E-COMMERCE BOOM: DRIVING DEMAND FOR AIR CARGO SERVICES


BY Robert KHACHATRYAN, Founder and CEO of Freight Right Global Logistics


MARKET research projects that the global e-commerce market 02


will exceed US$8.09 million by 2027 and will grow by 7.2 percent, on average per year. The global cross-border e-commerce logistics market was valued at US$97.85 billion in 2023, and the cross-border e-commerce market is expected to deliver an explosive growth rate of 25.4 percent from 2024 to 2030, greatly accelerating that of domestic e-commerce. This skyrocketing growth has further fueled the call for quick, dependable international shipping and helped cement air cargo as an essential catalyst of the global supply chain. The move toward same-day and next-day delivery has transformed


logistics thinking. There is a voracious demand for speedy shipping, with 80 percent of shoppers wanting same-day shipping, and a


staggering 61 percent of shoppers wanting their packages to land on their doorstep within one to three hours of making an order. This is precisely why Amazon has signalled its plans to drastically expand its air fleet, with the goal of operating over 100 aircraft by 2025 and possibly expanding that number to 200 or more in the coming years. For example, Alibaba's Cainiao network controls its dedicated freighters and offers cross-border delivery times reduced from seven to ten days to less than one to five days. Global air cargo demand soared 11.3 percent in 2024 alone


to surpass the previous record highs of 2021, according to International Air Transport Association (IATA) data. The response from the airlines has been aggressive, with both passenger to freighter conversions (P2F conversions) of older passenger aircraft and growth into freighter as well as maximising belly cargo capacity in passenger flights. But airport crowding and bottlenecks are still making flights more expensive and schedules unsteady. Skytrax has released data


showing an increase of 11.3 percent in global air cargo demand for the year 2024, surpassing 2021 peak record levels. Technology


is transforming the sector—everything


from AI-


powered demand forecasting to automated warehouses and robotics is improving efficiency, and sustainable aviation fuel (SAF) is being used to reduce emissions. Nonetheless, customs compliance and de minimis threshold changes are regulatory hurdles and complexities that need to be overcome when shipping across borders. Leading cargo carriers also set ambitious goals to replace 10 percent of conventional jet fuel with SAF by 2030. Air cargo demand will keep boosting air cargo when high-value, time-


sensitive shipments remain to be delivered. E-commerce is driving growth, with the global air cargo market expected to reach between US$216.29 billion and US$230.37 billion by 2032. E-commerce will make up a dent in air cargo volumes. At the same time, drone deliveries and urban air mobility (UAM) may revolutionise last-mile logistics, with the autonomous cargo aircraft market anticipated to register a CAGR of 18.2 percent. As e-commerce continues to disrupt traditional retail, airfreight is


becoming an increasingly prominent part of the supply chain, where speed and reliability are paramount.


Did You Know ? CHERRIES ARE GOOD FOR YOU BY Michael SALES


CHERRIES contain nutrients and antioxidants that help lower blood pressure and cholesterol and manage blood sugar. They are also rich in vitamin C, which helps produces collagen and can also brighten skin. A natural source of melatonin, the fruit can help regulate sleep and reduce inflammatory conditions. They can also speed up recovery after exercise, alleviate symptoms of gout and can help prevent cancer. Transporting them has traditionally been


a regular feast for air cargo operators. An estimated 2 million tonnes of these fruits are produced yearly with Turkey, Chile, Russia and the USA being the leading producers. As they are not sensitive to cold damage, cherries are usually stored and moved at around freezing


point, with the high humidity, being ideal for preventing weight loss and enhancing visual attraction. By exposing them to lower concentrations


of oxygen levels of carbon dioxide, and ripening becomes


slower and ethylene production is reduced. The fruit in modified conditions, can maintain the fresh quality for four weeks or more. This re-enforces the move towards using


ocean freight, a cheaper option, balanced against the speed to market provided by air. Chilean cherry shippers facing stiff competition from growers in New Zealand and South Africa, have set their sights on emerging distant markets.


The cherry capital of USA In 1852, Peter Dougherty, a Presbyterian missionary living in northern Michigan planted cherry trees on Old Mission Peninsula, near


ACW 10 MARCH 2025 www.aircargoweek.com increased


Traverse City, Michigan. Other residents of the area followed suit and planted trees. The area proved to be ideal for growing cherries because Lake Michigan protects the crops from Arctic winds in winter and cools the orchards in summer. Cherry orchards were soon established along the banks of the lake. The “Blessing the Blossoms Festival” was started in 1910 and, apart from a gap during World War 2, has taken place every year, complete with a” Cherry Queen” and pie competitions.


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