News / Airports must get creative as surging ecommerce threatens to engulf capacity

© Worawee Meepian

Airport infrastructure and aircraft capacity are not expanding fast enough to keep up with demand, largely being driven by ecommerce, forcing the industry to get creative.  

On the sidelines of last week’s TIACA ACF in Miami, director of marketing & air service development at Miami International Airport (MIA) Emir Pineda told The Loadstar that dealing with ecommerce shipments posed different challenges to general cargo.  

They include increased air waybills per pallet, longer clearing processes and more trucks required for feeder services.  

“The dynamics are causing changes in how we manage an airport like ours… what do we do? How do we manage it? What kind of assets do we put in place? How much money do we invest in it?” he asked. 

“All these questions are coming into place and, at the same time, volumes keep growing – it doesn’t stop”. 

Mr Pineda noted that some four years ago, MIA had 30% less congestion than  today, resulting “from all this ecommerce”. 

And when asked if infrastructure was improving at the same pace as ecommerce was growing, Mr Pineda told The Loadstar: “No, not at all.  

“We are very close to our capacity, which is three million tons, based on our warehousing space. The past three years, we had 2.7mt, 2.79mt, 2.78mt and 2.76mt, respectively. We’re going to be very close,” he explained. 

CEO of data company Rotate, Ryan Keyrouse, told The Loadstar aircraft capacity, with projected growth of 4.4% next year, was also severely lagging demand.

He noted that panel speakers at ACF “keep saying ecommerce can continue to grow at 20%”, but questioned: “All the flights are full… Where’s this demand growth going to fit?”.

“That leads to a conversation of extreme capacity constraint. It’s the same capacity, more demand, where is it going to go? That’s an interesting question for the industry to answer.” 

However, Mr Pineda confirmed that MIA wouldn’t stop accepting cargo, even as it neared capacity, and must “become more efficient”. 

He explained: “Current companies at the airport will have to become more efficient. They’re just going to have to manage more with what they have… DHL, FedEx, UPS, they’re a lot more efficient.” 

Such solutions, he told The Loadstar, included increasing cargo storage and introducing digitisation. And he added: “We can also go vertical… if you’ve got more cargo coming in but you can’t clear it fast enough, well, maybe you store it. You go higher. A lot of our warehouses are only so high, but maybe you go one more level. 

“Another way to improve is through automation or digitalisation. That’s where the cargo community system comes in… it allows you to be a lot more efficient when you drop off and when you pick up at the airport. 

“So, we think we have ways to get around that 3m ton point of full capacity, but it’s going to take a community [dedicated] to working together,” concluded Mr Pineda.