Global Air Freight Market 2024-2030

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    2024 Update Coming Soon Published- March 2022 Number Of Pages -132

    AIR FREIGHT MARKET

     

    KEY FINDINGS

     

    1. In 2021, The Global Air Freight Market reported volume of XX Million Tonnes and generated revenue of $XXBillion and growing with a rate of CAGR of 3.9 percent in terms of volume till 2027.
    2. Supply chain issue in container shipping is expected to stabilize by 2022-23, which will lessen the air freight demand and rates.
    3. In terms of Value, the US is the current leader in the global air freight market due to strong demand for manufacturing exports and increased penetration of advanced technologies in the supply chain.
    4. The global air freight market is dominated by major players – DHL, FedEx, UPS, DB Schenker, Kuehne + Nagel and DSV Panalpina occupied XX% of the market worth $XXB in 2021.
    5. Air Cargo airlines such as Emirates SkyCargo and Qatar Airways Cargo’s freight services accounted for ~XX% of their overall revenue in 2021.
    6. In the U.S., potential significant government investment will encourage expansion in terms of capacity, more airlines are adding more freight routes and new initiatives in biometrics will provide a much-needed positive boost for the industry.
    7. The average air freight rates dropped slightly in H1 2022 for a short period of time, only to start climbing again in early Q3. The average for the year will be slightly lower than last year. 
    8. In 2021, The E-Commerce Air Freight volume reached XXMillion tonnes, generating revenue of $XXB, and the market is estimated to grow with a CAGR of 9.8 percent by 2027 from 2022 in terms of volume.
    9. The Russia-Ukraine conflict is expected to negatively affect global air cargo markets as airspace closures sever many countries’ direct connections to Russia, currently, it is too soon to assess the magnitude of the impact.
    10. Because airspace restrictions have been severed by many countries’ direct ties to Russia, the Russia-Ukraine war is projected to have a detrimental impact on global air cargo markets; it is too early to determine the severity of the damage.
    11. Sanction-related shifts in manufacturing and economic activity, and geopolitical uncertainty are converging. Capacity is expected to come under greater pressure.
    12. Air Freight rates are starting to rise again because of the loss of available aircraft, along with the possibility of more flight suspensions.
    13. In 2021, Rates were compounded by supply chain issues, which made air cargo relatively attractive compared to maritime shipping.
    14. Many Countries are lifting COVID regulations, Leading to the rise of passenger load factor to 2019 levels. 
    15. Vaccine deliveries and PPE shipments, typically carried by air, further contributed to the outperformance of air cargo and to the improvement in growth seen in December amid the spread of Omicron.
    16. Facing the decline in air freight capacity during the pandemic, various air freight carriers have been trying to tackle the situation by employing several strategies such as transforming more chartered flights into freight forwarders. 
    17. Over 100+ airlines have transformed some of their passenger aircraft to support cabin-loaded cargo to fill the void in cargo demand post 2020.
    18. Air cargo operations have seen the most disruptions, with all airports. This situation caused airport congestion and delays and triggered further rate increases due to lost air cargo capacity.
    19. Current Airlines and their partners must prepare for the future growth of e-commerce in the air cargo industry by transforming into a modern service provider and anticipating consumers’ expectations. 
    20. The fluctuating price of crude oil also makes it very difficult to plan and budget for operating expenses long-term. (Sustainable Aviation Fuel) SAF may offer a solution to this problem since its production can be spread worldwide, and across a number of different feedstocks, thereby reducing airlines’ exposure to the fuel cost volatility that comes with having a single energy source.
    21. In 2020,  Air cargo traffic at Canadian airports reported 1.15 Million Tonnes of total cargo handled (Loaded + Unloaded).
    22. In the U.S, potential significant government investment will encourage expansion in terms of capacity, more airlines are adding more freight routes and new initiatives in biometrics will provide a much-needed positive boost for the industry.
    23. FedEx Express has increased capacity with the launch of two new flights connecting Asia Pacific (APAC) businesses to Europe and North America respectively. At the same time, it has added wide-body 767 freighters, making the FedEx fleet in Asia 100% wide-body.
    24. Due to the current COVID wave in China and Hong Kong – A lot of south China traffic traditionally routed via HKG now flies directly to ex-Guangzhou or Shenzhen or other Chinese airports.
    25. Middle East cargo airlines are reducing the amount of paperwork needed for air cargo shipments by 90%, the new services are designed to cut down on unnecessary trips to the airport for air freight agents by 80%, by providing digital access to all required documentation, as well as related online payments and handling of documents to the ground handler.
    26. By 2027, The market share of the Middle East and African regions is estimated to grow by 1.2% of the global volume, from X% in 2021. Airlines are expanding their cargo fleet along with their airport hubs.
    27. In the U.S., there are companies like FedEx, and UPS, and in Germany, there is DHL and DB Schenker, the highest growth can be seen on infrastructure in their specific regions.
    28. The boom in e-commerce has spread across regions, and in the Middle East, Saudi Arabia has emerged as a key hub for the movement of goods from China to the Arab region, with major infrastructure projects being developed to help facilitate trade.
    29. During the semiconductor shortage, the air freight market played a major role by downsizing the shipping time even under the crisis – Closure of airspaces and sea routes due to the Russia-Ukraine war and congestion at Chinese ports amid Covid lockdowns are posing a double whammy for Global automakers and electronics assemblers.
    30. Most global shipping companies, including Maersk and MSC, have already stopped shipping cargo to Russia to support the international community’s sanctions against the country.
    31. Kuehne+Nagel is the market leader when it comes to freight forwarding with 2.2 Million tons of cargo in 2021, this is due to its acquisition of almost 80% of Apex Logistics in May of 2021.
    32. The average price for air freight forwarding was 4X times more expensive than sea shipping before the Covid crisis, whereas in September 2021 it was only three times more expensive. 

     

    INTRODUCTION TO AIR FREIGHT MARKET

     

    While land and ship cargo transportation remain as favorable options, goods transport by air is considered as the quickest and the unhindered mode of transportation.

     

    cargo airlines plan to tie up with logistics service providers to create an efficient supply chain regarding freight forwarding, storage capability, and customs clearances.

     

    Air cargo continues to face significant challenges, such as falling global trade volumes, global economic activity, and weakening consumer confidence, indicating further declines.

     

    However, the market is expected to grow due to factors, such as a strong demand for manufacturing exports and increased penetration of advanced technologies in the value chain.

     

    The Logistics industry witnessed a huge decline in demand due to the global pandemic in 2020. The air freight shipments were fairly low throughout 2020.

     

    Economic crisis caused due to implementation of lockdowns which severely affected global air freight transports.

     

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    The sudden outbreak of novel coronavirus led to the immediate closure of national and international airways while aircrafts had to be grounded for months.

     

    During the initial stage of outbreak many countries imposed a ban on international flights, and later domestic flights were also suspended for months.

     

    Facing the decline in air freight capacity, various air freight carriers have been trying to tackle the situation by employing several strategies such as transformations and more chattered flights.

     

    Air freight contributes to global economic development as the global economy relies on the capability to transport valuable and superior quality products rapidly to consumers across the world.

     

    Attributed to fast delivery speeds and temperature-sensitive space in aircraft, vaccines are usually sent via aircraft to help reach their required destination in time to be effective.

     

    According to the World Health Organization, vaccination programs help prevent around 3 million child deaths annually. Air freight plays a crucial in delivering temperature-sensitive medications in the best conditions by means of state-of-the-art procedures and technologies.

     

    To learn more about Global Air Freight Transportation Services Market, read our report

     

    AIR FREIGHT MARKET SEGMENTATION

    AIR FREIGHT MARKET BY SERVICE

    • Forwarding
    • Express
    • Mail
    • Others

    AIR FREIGHT MARKET BY END USE

    • E-Commerce
    • Pharmaceuticals
    • Electronics
    • Others

    AIR FREIGHT MARKET BY DESTINATION

    • Domestic
    • International

    AIR FREIGHT MARKET BY GEOGRAPHY

    • North America
    • Europe
    • Asia-Pacific
    • Middle East & Africa
    • Rest of the World

     

    AIR FREIGHT MARKET DYNAMICS

     

    Sr. No. Timeline Company Updates
    1 December 2021 Singapore Airlines Singapore Airlines selects Airbus A350F to renew its freighter fleet by purchasing seven A350F freighter aircraft, with options to order another five aircraft.
    2 June 2021 China Cargo Airlines China Cargo Airlines (CCA) joined the SkyTeam Cargo Alliance, a partnership that aims to provide customers ensure seamless cargo coordination and delivery across its global network, during the Air Cargo Europe exposition in Germany.
    3 August 2021 DHL Express and Aviation DHL Express and Seattle-based aircraft manufacturer Aviation have teamed up to build the first-ever electric aviation network. The partnership will pioneer sustainable aviation and shape the future for zero-emission cargo and passenger flights.
    4 August 2021 Sonoco ThermoSafe and Korean Air Cargo Sonoco ThermoSafe and Korean Air announced a global partnership agreement for the leasing of the new Pegasus ULD temperature-controlled bulk shipping container.
    5 November 2020 Vietjet Air and UPS Airlines Vietjet Air partnered with freight carrier UPS, allowing both airlines to leverage air cargo capacity on each other’s aircraft between the U.S. and Asia, especially within Vietnam and Thailand.

     

    The air freight market is being propelled by the growth in demand of pharmaceuticals as well as medical devices. Despite being a costlier mode of transportation the demand of perishables, as well as the rising demand for JIT (Just in Time) production of goods created a massive demand for air freight services globally. 

     

    The evolving e-commerce has put pressure on sales channels for faster delivery and an optimum supply chain. This scenario brings opportunities for third-party logistics and warehousing services to integrate with the air e-commerce channel.

     

    Owing to the continued growth in online shopping, many third-party logistics (3PLs) are offering more multi-modal services, which include air cargo service as a critical mode of transportation.

     

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    The consolidated air freight option allows clients to bundle their consignment with several other items to create a full load, owing to which consolidated air freight becomes quite economical for moving the goods via plane.

     

    Moreover, consolidated freight is profitable to both delivery service companies and airlines as it is more cost-effective to fly an airplane with a full cargo load in comparison with flying an airplane with a partial load.

     

    Air freight consolidation is the most affordable way to ship goods in a faster & safer way, and the rising popularity of consolidated air freight service is expected to drive the growth of the global air freight market over the forecast timeframe.  

     

    With the testing of an autonomous tug that will transport containers from freighter aircraft to the cargo terminal, Dallas Fort Worth International Airport is taking a modest step toward future-proofing.

     

    EasyMile, a software company that automates current vehicles, and Menzies Aviation, a cargo handling company, have agreed to collaborate on a test program in which a robot tractor with a cart will transport merchandise between an airside warehouse and a parked freighter.

     

    The airport authority isn’t directly participating in the initiative, but it acted as a facilitator when Menzies expressed interest since it has made a concerted effort to leverage technology to address societal disruptions such as electric transportation, driverless vehicles, and climate change.

     

    EasyMile and DFW had a prior partnership dating back to when the two companies tested an autonomous bus in a secluded parking area a few years ago.The technology isn’t yet at the point where you can issue an RFP, acquire it, and have it work.

     

    So, in order to conduct a pilot and gain our own insights, lawyers were able to resolve issues about driverless vehicles operating near flights in order to finalise the agreement.

     

    THE COVID IMPACT ON AIR FREIGHT MARKET

     

    The spread of COVID, has almost halted the travel industry, which remarkably had an adverse on cargo capacity. 

      

    With most planes grounded, there was no practical way to deliver the freight by air. In March and April 2020, cargo capacity declined by 22.7% and 42% annually. The belly cargo has been impacted even worse, their capacity has gone down by as much 45% in March and 75% in April. 

     

    Trends, such as rapid e-commerce, disrupted supply chains and a drastic decline in air passenger travel have acted as a boon for the global air freight market during this pandemic. 

    However, capacity on dedicated freighters has seen the opposite change because of the conversion of passenger aircraft to cargo-only flights.

     

    Therefore, the blend of disrupted supply chains and a drastic decline in air passenger travel has been a boon for cargo-only airlines. In 2020, the cargo load factor increased by 11.5% year-on-year in April and reached an all-time high since 1990

     

    AIR FREIGHT MARKET SIZE AND FORECAST

     

    In 2024, The Global Air Freight Market reported a volume of XX Million Tonnes and generated revenue of $XX Billion and growing with a rate of CAGR of xx percent in terms of volume till 2030. 

     

    The increase in market size and revenue is attributed to three major factors: 

    1. Synchronized Global Economic Expansion 
    2. Increased Industrial Output 
    3. World Trade Growth 

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    Additionally, global air transport plans to tie up with logistic service providers to create an efficient supply chain concerning freight forwarding, storage capability, and customs clearance. 

     

    Air cargo continues to face significant challenges, such as falling global trade volumes, global economic activity, and weakening consumer confidence, indicating further declines. 

      

    However, the market is expected to grow USD XX billion with CAGR XX% during the forecast period, due to the boosters, such as strong demand for manufacturing exports and increased penetration of advanced technologies in the value chain.

     

    In addition, the overall growth rate in the e-commerce sector is expected to reinforce the growth prospects of the market studied, over the forecast period. 

     

    Currently, Top Market leaders have bases in U.S. and emerging players such as Amazon Prime Air are substantially increasing their air fleet on a higher growth rate. 

     

    AIR FREIGHT MARKET RECENT ACQUISITIONS

     

    In August 2021 – Deutsche Post DHL Group signed an agreement to acquire up to 100% of J.F. Hillebrand Group AG (“Hillebrand”) and its subsidiaries at an equity value of around $xx billion. 

     

    Dec 2020 – FedEx Corp. acquired ShopRunner for around $xx billion, the e-commerce platform that directly connects brands and merchants with online shoppers.

     

    ShopRunner’s capabilities will complement and expand the FedEx e-commerce portfolio and are expected to create increased value for brands, merchants, and consumers. 

     

    Sept 2021 – UPS acquired Roadie for almost $xx million, a technology platform that enables local same-day delivery with operations throughout the U.S. Roadie’s leading technology, combined with UPS’s portfolio, will open doors for new growth opportunities.

     

    Roadie’s technology platform also will provide opportunities to improve existing, and potentially add additional, UPS small package capabilities.  

     

    Royal HaskoningDHV, a Dutch engineering consultant, has purchased Districon, a Dutch-based supply chain solutions company with ties to the air freight industry. 

     

    AIR FREIGHT MARKET RECENT PRODUCT DEVELOPMENT AND INNOVATION

     

    Air Canada will be able to increase freighter operations to the United States and Latin America with the installation of a third cargo jet. The third converted Boeing 767-300 cargo for the airline will arrive at the Toronto hub at the same time as the additional routes.

     

    Through the establishment of these new routes, Air Canada can more easily connect cargo from the United States to Canada, Europe, Latin America, and the Asia-Pacific region.

     

    To take advantage of long-term growth prospects, Air Canada decided strategically during the pandemic to diversify its operations by placing a greater emphasis on cargo and e-commerce.

     

    With options for an additional six aircraft, Cargolux, a significant all-cargo airline located in Luxembourg, has sealed an order with Boeing for 10 next-generation 777-8 freighters. In comparison to current freighters, the 777-8 will produce fewer emissions, be quieter, and consume less fuel.

     

    According to Boeing, the 777-8 has almost equal payload and range capabilities to the 747-400 freight plane while offering 30% greater fuel efficiency, pollution, and operational expenses per tonne. Additionally, it makes around 60% less noise than its forerunners.

     

    AIR FREIGHT MARKET NEW PRODUCT LAUNCH 

     

    A new Chicago Air Freight Gateway was opened by Maersk in the vicinity of O’Hare Airport to provide direct planeside recovery with prompt transfers to the new facility.

     

    70% of the U.S. can be reached by truck in an overnight trip, allowing crucial goods from Asia and Europe to arrive quickly when timing is crucial.

     

    The new building also services Maersk’s constantly expanding, 24/7 aviation freight center at Rockford International Airport.

     

    Following Maersk’s recent acquisition of Senator International, which contributed Transatlantic experience and assets to integrate into Maersk’s North America Air Freight service to customers, the news about the Chicago Air Freight Gateway was announced.

     

    To ensure prompt and secure handling of air freight, the new facility is a Bonded Container Freight Station (CFS) with U.S. Customs and functions as a U.S. Transportation Security Administration (TSA) Certified Cargo Screening Facility (CCSF). Import and export cargo can now be handled and sorted in a priority manner.

     

    The world’s largest container line, Mediterranean Shipping Co. (MSC), is following other ocean carriers in entering the air freight market by launching an air cargo service.

     

    It will start an air cargo airline the following year in collaboration with freighter operator Atlas Air, joining rivals Maersk and CMA CGM as ocean carriers who have expanded their service offerings by acquiring private airplanes.

     

    In addition to its ocean container shipping solutions, it will provide a service. The carrier intends to provide service to “important trade channels and numerous industries,” which customarily have high demands for air freight delivery.

     

    Vietnam’s first all-cargo airline, IPP Air Cargo, is getting ready to start flying. The new airline has been granted an air transport license, but before beginning operations, it must first get an air operator certificate (AOC).

     

    In November, the business plans to begin operations with four Boeing 737-800 BCF freighters. At a time when the industry is in disarray as a result of the pandemic, IPP Air Cargo has just filed to launch an airline that specializes in freight transport with investment.

     

    Amazon.com Inc inaugurated Amazon Air, a dedicated air cargo service in India, as it seeks to expand and speed up delivery in one of its core countries amid rapidly expanding e-commerce sales.

     

    The corporation has invested in Indian cargo carrier Quikjet to transport Amazon goods exclusively across four key Indian cities.

     

    After the United States and Europe, India is the company’s third market to debut Amazon Air. The Seattle-based company maintains a network of more than 110 planes that fly to over 70 destinations globally.

     

    Quikjet, a Bengaluru-based freight carrier owned by Europe’s ASL Aviation, already runs one plane for Amazon and will launch its second in cities including Mumbai, Delhi, Bengaluru, and Hyderabad.

     

    Amazon, which employs its own ground delivery services for shipping, also collaborates with Blue Dart Express Ltd (BLDT.NS), one of India’s largest air freight carriers, which is managed by Deutsche Post DHL Group (DPWGn.DE).

     

    Amerijet International Airlines has announced the debut of SmartKargo, its new cargo management system. The new web system gives the airline’s clients more options for viewing rates, capacity, and making real-time bookings. Digital transformation and automation have been at the forefront of Amerijet’s mission to bring digital innovation to its clients at every stage of the journey.

     

    ECU360, ECU Worldwide’s digital logistics platform, has developed a new digital air freight solution to help businesses of all sizes streamline their shipping processes.

     

    The service is yet another additional value solution for ECU360’s US customers, employing technology to increase the efficiency and cost-effectiveness of air freight operations. ECU Worldwide has already served 780 US customers with air freight services, exporting to 310 airports in 174 countries.

     

    The company has created a platform that automates the entire air freight process, from quotation to booking, with real-time tracking and live timetables. The company hopes to offer a speedier, more efficient, and cost-effective means to deliver goods globally by utilizing this cutting-edge technology.

     

    Houston Airports continues to serve the region and the United States as a top air freight destination.

     

    The additional goods route lets the airline to offer more capacity in numerous destinations while also expanding Houston’s trade potential in Europe, the Middle East, and Central and Eastern Asia.

     

    The extension of Silk Way West’s air freight service reflects rising global demand for commodities such as petrochemical and industrial equipment for the energy industry, medical equipment, high-tech hardware, perishables, and plastics.

     

    A.P. Moller-Maersk (Maersk) launched two new air freight services with regular flights between the United States and China.

     

    Maersk’s new customer-backed air corridor is planned to bridge a connectivity gap between the world’s two largest maritime markets, providing time-sensitive and high-value cargo options via new air services.

     

    The operation will be carried out using three newly purchased Boeing 767-300 freighters from Maersk Air Cargo’s fleet.

     

    Maersk also inaugurated a new air freight service with Amerijet International’s regular flights between Greenville-Spartanburg, South Carolina (GSP) and Incheon, Korea (ICN).

     

    Menzies Aviation, the world’s largest aviation services firm, has been chosen by South African Airways Cargo to operate air cargo services at OR Tambo International Airport (JNB) in Johannesburg, Cape Town International Airport (CPT), and Port Elizabeth International Airport (PLZ).

     

    In the Dominican Republic’s Punta Cana, DP World launched a new air cargo logistics center. DP World and the Punta Cana Free Trade Zone (PCFTZ), a subsidiary of Grupo Puntacana, have a contract in place to develop the new facility.

     

    The infrastructure will support multimodal air, land, and marine cargo and will feature a new logistics hub. 

     

    The logistics hub will take advantage of DP World’s vast experience in multimodal cargo management in the Dominican Republic, its world-class standards for managing logistics operations globally, as well as the excellent connectivity of the Punta Cana International Airport (PUJ) to international distribution centres.

     

    The goal is to join forces to improve connectivity within the country and across the region. The Dominican Republic becomes more alluring for industrial and logistical enterprises in the Americas and beyond the more connectivity we can create, whether by air or sea.

     

    With this new air hub project, we can take advantage of Punta Cana’s developing transportation network and hasten the Dominican Republic’s development into the most significant logistics hub in the region.

     

    The project will be a special chance to further the economic and social development of the Dominican Republic.

     

    DP World and Punta Cana International Airport are both regional leaders in the airport, maritime, and logistics sectors.

     

    For its air cargo product, DHL Express has introduced a new GoGreen Plus service that is optional. Customers can use Sustainable Aviation Fuel (SAF) to reduce (or “inset”) the carbon emissions associated with their cargo through the new GoGreen Plus service.

     

    Global DHL air cargo customers have the option of using the GoGreen Plus service, which allows them to customize the amount of SAF they use and the amount of CO2e reduction they want to accomplish.

     

     When compared to the conventional jet fuel it replaces, SAF, which is made from waste oils, can reduce greenhouse gas emissions by up to 80% over its lifetime.

     

    Its GoGreen Plus service is made possible as a result of these partnerships, which are currently essential to cutting aviation’s carbon emissions.

     

    Customers can reduce their Scope 3 emissions—the unavoidable greenhouse gas emissions that arise throughout a company’s value chain, including in downstream transportation and distribution—by insetting through GoGreen Plus. 

     

    They have made it easier for their air cargo customers to choose more environmentally friendly options and to make a positive difference in lowering carbon emissions by introducing GoGreen Plus.

     

    More than 300 dedicated aircraft operated by DHL Aviation manage 18 of its own and partner airlines, which operate more than 2,400 flights each day to more than 500 airports across the world. The main item produced by DHL Express, TDI, uses the majority of the freight capacity.

     

    DHL Express sells any unused cargo space on these flights to companies that deal in air freight.

    AIR FREIGHT MARKET RECENT DEVELOPMENT

     

    One Air, a newcomer from the UK, launched freight operations with one jumbo plane.  A brand-new cargo airline based in the UK began operations with just one freighter and the distinction of being the only Boeing 747 operator in the nation.

     

    The start of a single-aircraft airline during a freight downturn may seem like a poor time to do it, but One Air’s owners are sure that shipper interest will be generated.  One Air performs unscheduled charters and transport service for airlines and logistics firms that require specialized airlift using a 747-400 jet that was originally built to carry passengers for Air Canada before being modified to a cargo configuration. It has future intentions to operate as a scheduled carrier.

     

    They are currently beginning a regular flying programme from Asia Pacific to Europe with two 747 freighter flights each week in addition to sporadic charter flights. Furthermore, efforts are being made to expand their fleet with a second 747F, which they anticipate will start operating in early Q4. According to experts in the field, airlines perform best with at least six to eight aircraft to better spread out fixed expenses for maximum operational efficiency and cover contingencies like mechanical breakdowns and scheduled maintenance. 

     

    The recent decline of huge freighters and 747 passenger planes in the UK is one factor in the new business’ favour. Because of ownership ties to Russia and Western sanctions over the invasion of Ukraine, AirBridgeCargo was obliged to halt operating in the United Kingdom and stop using 17 Boeing 747 freight planes last year.

     

    Additionally, the two 747-400 freighters operated by CargoLogicAir, another member of the Volga-Dnepr Group in Russia, stopped flying. It will assist in replacing the gap in air cargo capacity caused by the collapse of the last independent cargo freighter operator in the United Kingdom as a result of its forced closure by governmental authorities, and it will offer crucial cargo capacity on routes with the U.K.’s important trading partners.

     

    Secure and dependable air freight logistics and heavy lift capabilities continue to be crucial on a national and international level as trade recovers from the epidemic and develops a new normal by adjusting to geopolitical challenges. The second freighter will come from Aerotranscargo.

     

    One Air may be able to obtain some scale through its membership in a bigger aircraft ownership group for spare parts pooling, engines, or maintenance, but the company has not yet made any indication that such connections exist. The spring saw the issuance by UK authorities of the new airline’s air operator certificate and operating licence. The 747-400 was successfully flown in proving runs last year by One Air personnel, demonstrating their proficiency in doing so.

     

    AIR FREIGHT MARKET COMPETITIVE LANDSCAPE

     

    Sr. No. Timeline Company Sales
    1 Q2-2021 (Ending June 2021) UPS Airlines UPS’ reported quarterly revenue of $23.4 billion, an increase of 14.5% annually, and adjusted earnings per share $3.06 which saw a 43.7% annual gain. Meanwhile, operating profit was $3.258 billion, an increment of 47.3%.
    2 Q2-2021 (Ending November 2021) FedEx Corp FedEx Corp reported revenue of $23.5 billion as compared to $20.6 billion the previous year. The net income decreased to $1.04 billion from $1.23 billion the prior year.
    3 Q2-2021 DHL Group Deutsche Post DHL Group reported Q2 2021 finances and saw revenues increase by 22.2% to €19.5bn ($ 22.10 B), up from €15.9bn ($ 18.02 B) in 2020. The EBIT margin almost doubled to 10.7%, up from 5.7% in 2020.
    4 Q3-2021 Korean Air Cargo Korean Air reported record third-quarter cargo revenues, beating its previous record by more than 100 billion won ($84 million). Korean Air’s reported 1.65 trillion won in cargo revenues for the quarter ($1.4 billion), up 62 percent from the second quarter. Cargo, in fact, accounted for the lion’s share of Korean Air’s $1.9 billion third-quarter revenue.

     

    The global air freight industry is dominated by major players operating in multiple regions across the world. One of the top air freight carriers, FedEx Corporation, has a footprint and air cargo hubs in foremost gateways. Additionally, the company acquired regional express players to further increase its service range.

     

    The growing demand of air transportation services has opened new challenges for air cargo service industries.

     

    Airlines are focussing on implementing new technologies like additive manufacturing instead of traditional manufacturing in the development of aircraft with fuel-efficient solutions and accommodative innovative technologies to provide cost-effective service.

     

    In November 2020, CEVA Logistics opened a new facility in Sri Lanka, to serve the needs of consumers in the South Asian country, along with the Maldives.

     

    Both FedEx and UPS have participated in addressing the need for medical equipment during this pandemic.

     

    UPS collaborated with the Federal Emergency Management Agency (FEMA) to provide supply chain services for essential medical equipment including PPE, respirators, N95 masks, and gloves. FedEx established logistics service lines for the delivery of supplies and test kits.

     

    For logistics players to succeed, storage facilities need to be developed to assist the global increase in air transport. SEZ (Special economic zones), FTZ (Free trade zones), cold storage facilities, and bonded warehouses are anticipated to furnish significant warehousing needs for freight forwarding in and out of the airport soon.

     

     

     

    Sl no Topic
    1 Market Segmentation
    2 Scope of the report
    3 Abbreviations
    4 Research Methodology
    5 Executive Summary
    6 Introduction
    7 Insights from Industry stakeholders
    8 Cost breakdown of Product by sub-components and average profit margin
    9 Disruptive innovation in the Industry
    10 Technology trends in the Industry
    11 Consumer trends in the industry
    12 Recent Production Milestones
    13 Component Manufacturing in US, EU and China
    14 COVID-19 impact on overall market
    15 COVID-19 impact on Production of components
    16 COVID-19 impact on Point of sale
    17 Market Segmentation, Dynamics, and Forecast by Geography, 2024-2030
    18 Market Segmentation, Dynamics, and Forecast by Product Type, 2024-2030
    19 Market Segmentation, Dynamics, and Forecast by Application, 2024-2030
    20 Market Segmentation, Dynamics, and Forecast by End-use, 2024-2030
    21 Product installation rate by OEM, 2023
    22 Incline/Decline in Average B-2-B selling price in the past 5 years
    23 Competition from substitute products
    24 Gross margin and average profitability of suppliers
    25 New product development in the past 12 months
    26 M&A in the past 12 months
    27 Growth strategy of leading players
    28 Market share of vendors, 2023
    29 Company Profiles
    30 Unmet needs and opportunities for new suppliers
    31 Conclusion
    32 Appendix
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