Air Cargo Services and their Impact on E-commerce
The global air cargo services market is booming thanks to the growth of e-commerce and the demand for international shipments. According to Technavio’s report, it is projected that this market will experience an increase of $53.99 million between 2024 and 2028, with a compound annual growth rate (CAGR) of 4.32%.
Segmentation and Key Functions of Air Cargo Services
Air cargo services play a crucial role in transporting a wide range of products purchased through e-commerce, from fashion items to electronic products and perishable goods such as fruits and vegetables. Factors such as aircraft fuel prices, refinery capacity, and airport infrastructure influence this market.
The air cargo services sector is segmented into different types of services, with air transport services being essential for valuable and perishable products, such as vaccines and pharmaceuticals, which require cold chain systems to maintain temperature during transportation. The implementation of technologies such as robotics, automation, and big data is optimizing aircraft operations and improving route planning efficiency.
Impact of E-commerce on Air Cargo Services Demand
E-commerce, especially in countries like China, India, and Japan, is driving the demand for air cargo services. Companies are seeking fast and efficient response times to meet the needs of global supply chains and online purchases. This increase in demand is contributing to the development and expansion of the global air cargo services market.
Obstacles and Challenges Since 2020
Since 2020, the air cargo industry has faced numerous obstacles due to the COVID-19 pandemic. Travel restrictions, border closures, and decreased passenger flight capacity have affected available cargo capacity and increased air transportation costs.
These challenges have had a significant impact on the global economy. Disruption in supply chains has led to delays in product delivery and has affected various sectors, from manufacturing to retail. Additionally, higher air transportation costs have affected companies’ profit margins and final product prices for consumers.
Adaptation and Innovative Solutions
Despite these obstacles, e-commerce continues to grow, and the demand for air cargo services remains strong. Companies are seeking innovative solutions and adapting to new market conditions to ensure timely product delivery and maintain efficiency in their operations. In this context, technology plays a fundamental role in optimizing air cargo operations and improving route planning to mitigate negative impacts on the economy.
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Source: The Logistics World
