IATA’s Strategies to Boost Air Cargo in E-commerce
IATA outlined five key strategies for optimizing the air cargo industry in the e-commerce sector:
- Focus on dedicated e-commerce products and services to increase market share.
- Embrace digitalization to accelerate operations.
- Ensure compliance with global standards for smoother customs clearance.
- Invest in air cargo solutions to manage risks related to capacity and crises.
- Compete through responsiveness and value-added services to reduce processing time.
Andre Majeres (IATA) emphasized that success in e-commerce goes beyond efficiency—it requires excellence through added-value services.
Rapid Growth in E-commerce
- 80% of cross-border e-commerce is shipped by air.
- Global e-commerce sales rose from $3.4 trillion in 2019 to $6.3 trillion in 2024, with projections of $8 trillion by 2027.
- Parcel volumes shipped by air increased from 170 billion in 2022 to 189 billion in 2023, and are expected to reach 256 billion by 2027.
- Cross-border e-commerce accounted for 10% of air cargo volumes in 2017, growing to 20% in 2022 and projected to hit 30% by 2027.
Industry Challenges
- Capacity constraints, geopolitical disruptions, climate impacts, trade barriers, labor/material shortages, and outdated tech infrastructure remain key issues.
- New U.S. tariffs and EU regulations may affect shipping behavior and logistics flows.
- Postal shipping is declining (from 60% in 2016 to an expected 10%), while direct parcel services and forward-deployed inventory models are growing.
Future Outlook
- IATA analyzed the top 50 global e-commerce players and identified varying logistics models (fully owned, third-party, hybrid).
- There’s growing demand for mid-tier services—faster than postal, cheaper than express.
- Despite market uncertainties, data indicates steady and strong growth.