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CAAS Magazine
Latest issue
| 45
Spring 2024
Cross-border e-commerce logistics has been expanding rapidly in the last decade to become a very significant part of the air freight market, estimated to be around 20%, and its fastest-growing segment. And in an overall global air freight market that has been flat or in decline for much of the last 18 month, the continued growth of e-commerce traffic has focused minds even more clearly on satisfying its needs.
As highlighted in the E-commerce report on page 6, air cargo stakeholders have accelerated their efforts to adapt to this vertical’s evolving needs. And the return of bellyhold capacity since the end of the Covid pandemic has encouraged some major cross-border e-commerce shippers to turn again to a ‘supply direct from China’ model, requiring further adjustment by air cargo stakeholders.
Beyond investment in specialist facilities and capabilities, the growth of this segment has other implications for the market – including because e-commerce brands are prepared to pay a premium for air freight services. By absorbing a substantial portion of the capacity and influencing global pricing levels, it potentially squeezes out or makes it more challenging for traditional cargo customers to find capacity, at peak times or on certain lanes.
Inside this issue