E-commerce's Explosive Growth Reshapes Air Cargo, Bringing New Challenges
E-commerce's rapid growth has transformed air cargo, with volumes now exceeding 12 million metric tonnes annually. However, this surge brings challenges like increased cyberattacks and safety concerns, particularly with lithium battery shipments. Industry standards and regulations are lagging, despite efforts by organizations like BARIG to promote innovation and sustainability.
E-commerce's share of air cargo has surged to 20% in 2024, with projections to double in the next decade. This growth has led to a rise in cyberattacks on tracking systems, up 15% annually, posing risks of shipment fraud and data breaches. The lack of industry standards for processing and handling e-commerce shipments further exacerbates these issues.
Low-value e-commerce, now accounting for 55% of China-US air trade, is driving this growth. Ex-China e-commerce volumes reached 4.4 million tonnes in 2024, growing at a staggering 38% per year since 2021. However, this rapid expansion has brought additional safety and security concerns, with the low barrier to entry for global shippers and the proliferation of C2C and B2C environments.
Air cargo operations must adapt to these changes, necessitating significant improvements in data management practices. This includes adopting standardized data formats and automated data exchange protocols. BARIG, a key organization supporting the air cargo sector, is promoting flexible and innovative solutions to meet these demands.
Air cargo, worth an estimated USD 9.0 trillion dollars annually, is being reshaped by e-commerce. While this growth brings opportunities, it also presents challenges that require immediate attention. Industry stakeholders must collaborate to establish standards, enhance security, and adapt data management practices to ensure the safe and efficient transportation of e-commerce goods.
