News / A 'tsunami of e-commerce growth' on course for air cargo

Photo: © Ilia Burdun

Supply chain stakeholders must be ready for an “incoming tsunami of e-commerce growth” in air cargo, warned IATA’s head of e-commerce, Andre Majeres this week. 

According to IATA, one out of every five parcelled items currently transported has been purchased online, and the figure is set to grow to one in three by 2027.  

And, Mr Majeres warned WCS delegates in Hong Kong, this upcoming e-commerce demand would likely exceed expectations.

“Who are we to predict the growth? We had not foreseen this steady growth would grow faster and faster.” 

He said that in 2022, the 170 billion e-commerce parcel total was four times higher than in 2014 – by 2027, it is expected that growth will rise 50% on 2022 levels.  

“This means we have a tsunami of new parcels to process. When the tsunami is going to hit your operations, are you ready?” 

However, while this huge influx of demand creates operational hurdles, it also promises tremendous growth for air cargo. The global e-commerce market accounted for some $5.8trn of trade in 2023.   

Indeed, e-commerce was dubbed a “a tremendous area of opportunity” by the sales officer at e-commerce logistics platform Box C, Craig Strickland. 

“Capitalise on it, and I’m pretty sure you can make good business on it,” advised Mr Majeres.  

But he said that within this consumer-centric market, operational excellency was crucial to success. 

“You must 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.”  

As an e-commerce ‘super-hub’, Hong Kong is a rather fitting destination for this year’s WCS, given that many delegates have accredited e-commerce with holding up the air cargo industry since Covid. Cathay Pacific estimates the trade makes up about 50% of its volumes. 

Hong Kong Airport handled 4.3m tonnes of cargo in 2023, and this year “will see a full pandemic recovery”, according to the financial secretary for the government of Hong Kong Special Administration Region, Paul Chan.  

The airport is undergoing major supply chain investment and is collaborating with e-commerce giant Alibaba in the development of a new logistics hub.