Worldwide E-Commerce will reach $5 Trillion in 2021. In order to capitalize on the demand and embrace the opportunity that air cargo has during this pandemic, it is critical that we build a robust air cargo strategy.
IATA forecasted that air cargo represented 36% of airline revenues in 2020. E-Commerce is the fastest-growing segment within cargo. With that in mind, and the fact that 80% of crossborder e-commerce is transported by air, transforming to capture e-commerce can represent a lifeline for air cargo.
The air cargo sector has retained 92% of its business while almost 90% of passenger demand has evaporated because of travel fears and government restrictions.
COVID-19 has had a major impact on consumer behavior, increasing online purchases, and this change is here to stay. This is the first time that domestic outgrows cross-border. COVID and the lack of air freight capacity reversed the trend of cross-border outgrowing domestic. However, according to McKinsey, cross-border e-commerce will return to outgrow domestic from next year onwards with a predicted 20% shares of air cargo trade volumes by 2022.
According to the previous issue of the Monitor by December 2020, more than 2 billion people were shopping online in 2020, almost a quarter of the world’s population. «Ecommerce has moved 10 years ahead in just 90 days.» However, there has also been a decrease of 60% in postal parcels sent, due to lack of capacity.
Due to the pandemic and the reduction of 95% in the use of passenger aircrafts, this made it very difficult to ship cargo and mail in lower holds and thus to respond to the boost in behavioral change of consumers.
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