When it comes to modes of transportation, air travel is the fastest, followed by road, rail, and maritime. Different types of aircraft, including passenger, cargo, and hybrid aircraft, can carry cargo and freight. Many organisations, including the consignee, aircraft carrier, ground crew at the airport, and cosigner/shipper, handle air cargo and freight. Currently, logistic businesses give their clients an air waybill number (AWB) so they can follow the shipment while it is in transit.
Global Air Cargo and Freight Logistics Market Driving Factors and Challenges
An important element driving the growth of the air cargo and freight logistics industry is the increase of global trade. The need for quick, dependable, and effective cargo transportation services is rising as a result of the continuous expansion of globalisation and worldwide trade. Air cargo is expected to help meet market demand due to the increase in cross-border trade, the intricacy of global supply chains, and the time-sensitive nature of some industries, such e-commerce. Another important element that has significantly increased demand for air freight services is the quick development of e-commerce. Online retailers heavily rely on air freight due to its efficiency and speed, as they strive to match consumers' expectations for rapid and global goods delivery. Air cargo is essential to the e-commerce supply chain for a variety of reasons, including addressing seasonal demand surges, delivering perishable goods, and maintaining just-in-time inventories.
Over the course of the projected period, however, factors that are anticipated to impede market expansion include high import taxes implied in several nations and the high cost of air travel. Restrictions like global recessions can also stop the market from expanding even with growth factors. Spending by consumers and manufacturing activities may decline as a result of this. The need for air cargo services may therefore decline as a result, especially for luxury and non-essential items. Demand for air cargo may be impacted by price sensitivity that occurs during economic downturns, which causes consumers and businesses to become more cost-conscious and to revert to more affordable modes of transportation.
Impact of COVID-19 on Global Air Cargo and Freight Logistics Market
Global COVID-19 demand was lower than anticipated compared to pre-pandemic levels due to the pandemic's unprecedented and significant effects on the market. The market is recovering and getting closer to its pre-pandemic level, as seen by the sharp increase in the Compound Annual Growth Rate (CAGR). Many airlines reduced freight capacity in their lower decks when they paused or reduced passenger flights during the pandemic. Airfreight rates increased as a result of increased competition for space on cargo-only aircraft. Further upsetting the supply chain and creating delays and uncertainty were lockdowns, travel restrictions, and labour shortages. The first effects of COVID-19 were primarily negative, leading to a drop in demand and revenue, but the market is likely to recover gradually.
Air Cargo and Freight Logistics Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as; Air China Ltd, Bollore Logistics, Canada Air Cargo & Freight Logistics Inc, Cathay Pacific Airways Limited, CEVA Logistics, Deutsche Lufthansa AG, DHL Express (Deutsche Post), FedEx Corporation, Horizon International Cargo, Korean Air Co., Ltd, Lavin Star, Rosan Sea Air Services, Singapore Airlines, Titan Sea & Air Services, Others.
Global Air Cargo and Freight Logistics Market Segmentation:
Destination Type: Based on the Destination Type, Global Air Cargo and Freight Logistics Market is segmented as; Domestic, International.
By Service Type: Based on the Service Type, Global Air Cargo and Freight Logistics Market is segmented as; Express, Regular.
By Application: Based on the Application, Global Air Cargo and Freight Logistics Market is segmented as; Equipment, Food, Industry Materials, Pharmaceuticals and Healthcare, Other.
By Region: This research also includes data for Asia-Pacific, Europe, Middle East and Africa, North America, Latin America.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.