Defining the E-commerce variable in air freight demand

MIAMI — A bustling crowd of senior executives from all links in the air cargo supply chain gathered at the Mandarin Oriental for the 23^rd annual presentation of the Cargo Facts Symposium, where once again, it was hard to avoid the topic of e-commerce, and its impact on the global air freight industry.

Global e-commerce continues to revolutionize the air cargo industry, and is forecast to increase 19% per year over the next five years, from $1.9 trillion in 2016 to $4.5 trillion in 2021, according to the annual E-Commerce Revolution Report released today by our affiliate consulting arm, Air Cargo Management Group (ACMG).

At the conference, believers in e-commerce were quick to point out the growth potential of the segment: Online retail transactions still represent a mere fraction of overall commerce, with the global average at just around 10% by value (and half that spending is on media), pointed out Atlas Air Worldwide CEO Bill Flynn during a fireside chat. And yet as readers of Cargo Facts know well, the measurable impact on the airfreight industry is already far-reaching.

The 2017 E-Commerce Revolution Report produced by our freighter aircraft consultancy, provides an in-depth look at the explosive growth of global e-commerce air logistics.

The report features fresh and insightful analysis of the major marketplaces, sellers, and logistics providers that are fueling this revolution. It is not just the best-known participants, such as Amazon and Alibaba, driving this revolution, but also global express airlines, along with players lesser known outside their home countries, such as JD.com in China and Otto in Germany.

The report tracks the companies using and providing e-commerce air logistics, and offers insights on global trends in the industry.

“E-commerce has disrupted retail and is now revolutionizing logistics,” said Alan Hedge, senior director of Air Cargo Management Group. “This, our second annual report, builds on the strengths of the first and covers new territory by offering descriptions of additional e-commerce companies and additional discussion of fulfillment networks in China, the largest e-commerce market on the planet.”

New for the E-Commerce Revolution Report this year is a web-based companion database tool for exploring relationships between major e-commerce players and logistics providers. The tool allows users to search particular logistics providers and users to isolate logistics transactions worldwide. Additionally, the tool can be used to quantify e-commerce air logistics transactions on a global basis.

To obtain more information about the E-Commerce Revolution Report and tool or to order a copy, visit www.ECommerceAir.com or call +1 646-837-5945.

ABOUT AIR CARGO MANAGEMENT GROUP

Founded in 1978, ACMG is a specialized aviation consulting firm, that focuses on freighter aircraft and all aspects of the worldwide air freight and express industry. ACMG has provided research and consulting services to some of the largest corporations in the world.  ACMG is owned by New York-based Royal Media Group, a leading information services media company.

Alan Hedge is a senior aviation analyst with 25+ years of aviation experience. He is available to provide expert commentary on the assumptions and conclusions of this report and on events affecting the air cargo industry. Mr. Hedge can be contacted at ahedge@acmg.aero, or +1 (206) 801-8472.

Stay tuned for more e-commerce updates from the Cargo Facts Symposium.