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Latest Issue

| 46

SUMMER 2024

It’s been another extraordinary few months for the air freight sector and
logistics more broadly, with the attacks on container shipping in the Red Sea
continuing to disrupt supply chains, causing conversion of some sea freight to
air cargo and sea-air traffic, and putting significant pressure on air cargo
capacity, infrastructure and pricing in some markets. Alongside this, we’ve seen
demand for air freight capacity from the e-commerce sector continue to build,
especially from parts of southern China. As highlighted in the article on page
56, McKinsey estimates that as much as 70% of air cargo from southern China’s
Greater Bay Area is e-commerce traffic. McKinsey’s Ludwig Hausmann pointed out
that one single new e-commerce shipper – Temu – now accounts for 7% of global
cross-border e-commerce orders, most of which are shipped by air, compared with
0% in 2022. He highlights that there is no single cargo airline that has 7%
market share on a global scale.
In the interview article on page 4, Cathay Cargo’s Tom Owen estimates that
around 50-60% of the GBA-origin cargo Cathay currently flies is e-commerce
generated, with Cathay particularly well positioned to capitalise on the
extraordinary growth in cross-border e-commerce thanks to its location in Hong
Kong.

Some countries, including the US, have indicated their intention to review and
change their so-called ‘de minimis’ duty-free import thresholds, moves that
could threaten some e-commerce models. But in the absence of bold and
significant moves by regulators along those lines, e-commerce and the air
freight needs it generates seem set to continue growing strongly.
Unsurprisingly, e-commerce took up a significant amount of space at this year’s
World Cargo Symposium in Hong Kong, along with themes including artificial
intelligence, One Record, and the usual topics of digitalisation, efficiency,
safety, and people.

A number of One Record trials have already been taking place, and technology
representatives and others acknowledge that they need to build and promote
convincing use cases and business cases in order to help get more of the
industry on board. But momentum seems to be building there, with support
including from Chinese e-commerce logistics specialist Cainiao, as highlighted
in the Vertical Focus on E-commerce (page 42).

How to best serve and handle this market is a topic for continuing debate, and
the article explores one model – a close partnership between e-commerce
logistics specialist, cargo handler, and airline. Hausmann suggests that
carriers or cargo handlers could ‘reimagine’ their businesses to step into the
role of ‘commercial parcel forwarder’, although it would require significant
investment in areas such as customs clearance and end-to end logistics and
fulfilment capabilities. Some carriers are trying to enter this space, but
forwarders seem likely to continue to have an important role there, with many
already building e-commerce logistics capabilities.
Read More
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In This Issue

Turkish CargoKales Airline ServicesChicago Rockford International
AirportGoldhoferEPGFraportStrike AviationCEIAACL AirshopCIN FranceEtihad
CargoUnilodeHACTLCathay CargoMSC Air CargoJettainerASTRAL AviationChangiSASI
WorldDFWSwissportSACO Airport Equipment



EDITORIAL CONTENT

CAINIAO, WFS AND SAUDIA CARGO KICK OFF E-COMMERCE HANDLING COOPERATION IN LIEGE



CAPITALISING ON THE E-COMMERCE OPPORTUNITY



FROM BONUS TO NECESSITY



GLOBAL PHARMA FLOWS IN THEIR SIGHTS



HOW DIGITALISATION HELPED AIR CARGO AMID RED SEA SHIPPING DIVERSIONS



HOW E-COMMERCE IS TRANSFORMING INTERNATIONAL EXPRESS COURIER SERVICES



JOINING THE DOTS IN AFRICA



MAKING THE MOST OF DUBAI’S DEMAND SURGE



ONE RECORD, AI AND E-COMMERCE LEAD WCS AGENDA



PHARMA AIR CARGO DEVELOPMENTS IN 2024: MARKET OVERVIEW



SHIPPERS LOOK TO END-TO-END PHARMA LOGISTICS SOLUTIONS



WELL PLACED TO SUCCEED




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