SHIPPERS GET ON BOARD WITH AIR CARGO
A irfreight demand is on the rise, growing notably as the shipping landscape increasingly prizes speed—the mode’s chief advantage. Air cargo has ticked up steadily since 2023 and “is showing no signs of slowing down,” according to Brendan Sullivan, head of cargo for the International Air Transport Association (IATA). By July 2024, year-to-date air cargo demand had surged 13.4% above 2023 levels, setting a new record for cumulative air cargo demand this year. “The sector continues to benefit from recovering global trade, booming ecommerce, and capacity constraints in maritime shipping,” Sullivan says. Growing demand also puts new pressure on capacity and leads to efforts to keep up throughout the airfreight sector. Here’s a look at the complex global airfreight landscape, and the elements shaping its recent past, present and future.
Fluctuating airfreight demand leads to shifts in how shippers use air routes. Emerging markets also impact airfreight trends.
BEHIND THE BOOM The pandemic-era shift to accelerated delivery of goods has played a central role in air freight’s demand gains. “As fast delivery becomes the norm, customers start to see it as an expectation rather than a premium service,” says Kathy Liu, vice president of global sales and marketing for Dimerco Express Group, a Taiwan-based 3PL. “To remain competitive, businesses increasingly
turn to shipping options that meet these expectations, which drives a heightened demand for air shipping.” Ecommerce, in particular, is the catalyst. The growth in ecommerce is not only increasing airfreight demand but also influencing how capacity is distributed. “Some ecommerce companies now directly secure space from carriers through charters and sign
42 Inbound Logistics • November 2024
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