Air Cargo Industry Braces for Explosive Surge in E-Commerce Demand

Andre Majeres, head of e-commerce at the International Air Transport Association (IATA), warned about the massive growth in e-commerce expected over the next five years as customers increasingly opt for the convenience of online shopping.

Speaking to delegates at the World Cargo Symposium (WCS) in Hong Kong, Majeres emphasized the necessity for the air cargo industry to prepare for a significant surge in demand. He noted that by 2027, one out of every three parcels transported by air will stem from online purchases, marking a notable increase from the current rate of one out of five.

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Majeres underscored that in 2022, the volume of parcels, totaling 170 billion, was four times higher than in 2014. By 2027, this figure is projected to escalate to 256 billion, representing a 50% growth from 2022 levels.

“This means we have a tsunami of new parcels to process,” Majerus warned. “When the tsunami hits your operations, are you ready?” 

While this surge poses significant operational hurdles, it also brings opportunities for the air cargo sector, considering the global e-commerce market’s staggering $5.8 trillion trade volume in 2023.

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To fully leverage this growing market, Majeres stressed the importance of adapting to meet evolving demands. He emphasized the necessity of streamlined processes, rapid turnaround times, and a proactive investment mindset to stay ahead in this dynamic landscape.

“Capitalize on it, and I’m pretty sure you can make good business on it,” he said. “Be sure your processes are fit; they must be extremely fast and extremely strong. It is vitally important that your whole team is changing their mindset, and you understand you need to invest.”