Recent years have seen amazing growth in the eCommerce industry globally. The massive increase in online shopping has boosted several other sectors, including the air cargo industry. This online shopping trend has increased the need for swift and secure shipment of parcels to domestic and international customers. This demand greatly propelled the growth of the air cargo industry in the last few years. It has also created new challenges along with opportunities.
Between 2022 and 2027, the air cargo market is the Air Cargo Industry expected to increase by 19.52 million tons at a compound annual growth rate of 5.32%.
Today consumers look for real-time information related to their cargo shipment such as current status or location, delivery status, and more. Due to this, air freight forwarders need to adjust to the new market trends so that they are also able to render digitized end-to-end services to eCommerce businesses and their customers.
The Big Picture of the Air Cargo Industry
Air Freight is one of the fastest and most reliable modes of transportation for eCommerce goods, particularly for perishable and time-sensitive items. It nigeria phone number list is one of the most significant segments of the global logistics market. The global air freight volume has risen immensely in recent years, reaching 65.6 million metric tons in 2021.
The air cargo industry is vast, comprising numerous services such as moving freight on passenger aircraft, cargo aircraft, full charter flights, and the Air Cargo Industry express courier operations. These many reliable and fast methods for air cargo shipping, the ever-growing eCommerce business, and the expansion of the majority of them into the global market will further increase the growth of the air cargo industry in the coming years.
Influence of eCommerce Boom on the Air Cargo Industry
There has been a huge expansion in the air cargo industry owing to the flourishing eCommerce businesses. Since more and more people are shopping online, there is a greater need than ever for things to be delivered quickly and reliably. Air cargo is ideally suited for this logistical problem. The technological advancements that drove infrastructure development in the aviation industry have supplemented its growth. The air cargo industry has undergone a tech-enabled transformation to ensure that it is well-equipped to handle the surge in eCommerce shipment volume and demands. With the eCommerce businesses expanding to international markets, global connectivity has increased. This has opened up numerous business opportunities, allowing freight forwarders to flourish.
As more customers pick digital solutions to manage their shipments, the air cargo industry is also opting for automated systems and platforms to meet customer needs. The global air cargo demand increased by 8.3% in November 2023 compared to the Air Cargo Industry November 2022. Increased eCommerce shipments are one of the reasons for this growth.
Challenges Posed by the Flourishing eCommerce For the Air Cargo Industry
Some of the challenges posed by eCommerce growth to the air cargo industry are:
1. Managing customer expectations
The air cargo industry faces numerous operational challenges, such as weather conditions, air traffic control restrictions, and many more. Regardless of all this, customers want their deliveries on time. Thus, meeting these requirements is not easy as all these are uncontrollable factors.
2. Safety and Security
As eCommerce is growing, more and more parcels will be processed and moved by air cargo companies, increasing the chances of having shipped illegal or hazardous goods. Therefore, IATA is creating rules and regulations to reduce potential risks.
3. Increased Competition
With the rapid growth in the eCommerce upload and view all the educational materials industry, the demand for air cargo services has also increased simultaneously. Today, customers expect deliveries within the same day or 72 hours at most, and that too if it’s international shipping. This has pressurised the air cargo companies to ramp up the speed of their operations and optimise their capacity utilisation. This way air cargo services have to compete with each other to provide better and gain clients.
Strategies to Accommodate Changing eCommerce Demands
Digital technologies are revolutionising trade. Considering the rapid advancement and growth in the eCommerce sector, the air cargo industry is expected to double in size by 2035. Thus, it is essential to accommodate the changing eCommerce demands argentina numbers if an air cargo company wishes to stay ahead of its competitors. Here are some strategies to accommodate the changing eCommerce demands.