E-Commerce Becomes Big Structural Driver of Air Cargo Growth

For air cargo, most obviously e-commerce brings growth. It currently averages about 20% of cargo business industry-wide but is expected to grow to at least a third of all cargo shipments.

By 2027, e-commerce is expected to be an $8tn market segment, according to the International Air Transport Association (IATA).

Moreover, that growth remains stable. Unlike many other trade flows, there is no seasonality but rather a constant, developing demand year-round, according to the global body of airlines.

E-commerce has also seen to have a direct impact on other areas on air cargo.

First, it is opening up secondary airports because speed of shipment is so important. That, in turn, is generating new business at these airports and supporting the evolution of trade flows.

Second, e-commerce is clearly driving innovation in the business. The flow of information is vital in e-commerce, making system integration essential. This brings transparency to the sector, another key component.

It is also a factor in ‘ONE Record’ adoption and in driving new solutions in last-mile delivery.

ONE Record is an IATA standard for data sharing and creates a single record view of the shipment.

It is an end-to-end digital logistics and transport supply chain where data is easily and transparently exchanged in a digital ecosystem of air cargo stakeholders, communities and data platforms.

The e-freight programme has set the foundation for the digitalisation of the Air Cargo industry and the electronic Air Waybill (e-AWB) is now used for more than two out of three shipments.

Introduced by IATA (International Air Transport Association), the eAWB enables freight forwarders and airlines to manage air cargo documentation electronically, eliminating the need for physical paperwork.

Third, e-commerce is strengthening collaboration. Most e-commerce shipments still use freight forwarders or agents, and their experience is vital in a sector that has many fledgling enterprises. Working together is bringing new insights and new solutions that is supporting digital transformation efforts.

Industry analysts say that trade wars could bring a temporary volatility to the e-commerce business, but it was pointed out that e-commerce was a global phenomenon and regionally complex. Moreover, the long-term trend of consumers ordering online and expecting delivery within days would not go away.

E-commerce was therefore seen by analysts as a structural change in the industry and not simply a new revenue stream.

Air cargo embraces sustainability initiatives that range from fleet modernisation to sustainable aviation fuels, electric vehicles and green infrastructure. Reduced packaging is also a vital issue going forward.

Undoubtedly, e-commerce has become one of the biggest structural drivers of air cargo growth in recent years, and its influence is only getting stronger.

One estimate places the total global air freight market at $319.4bn in 2024.

Globally, airlines are collaborating directly with online retailers and logistics providers, moving beyond traditional freight forwarder relationships.

Air cargo is increasingly carrying smaller, high-value packages rather than just large industrial shipments.

Cross-border e-commerce sales are growing at double-digit rates, fuelled by various global platforms. Consumers now expect rapid delivery for international orders, which often requires air freight rather than slower ocean transport.

Unlike some cargo categories that are seasonal, e-commerce drives more consistent demand throughout the year, with peaks during events like Singles’ Day, Black Friday, and Christmas.

E-commerce is reshaping the air cargo sector into a more time-critical, high-frequency, and technology-driven business. It is not only adding to overall cargo volumes but also changing the very nature of how airlines, airports, and logistics providers operate.

Clearly, the winners will be those who can combine speed, reliability, and digital integration to serve this fast-growing market.