Air transportation is the fastest mode of transportation in comparison to rail, road, and maritime transportation. Cargo and freight can be carried by different types of aircrafts such as passenger, cargo, and hybrid aircraft. The air cargo and freight are handled by the number of entities such as cosigner/shipper, airport ground staff, aircraft carrier, and consignee. Currently, logistic companies are providing AWB (air waybill) number to its customers, so that they can track the cargo in transit.
Emerging e-commerce industry is expected to drive growth of the air cargo and freight logistic market
The increasing number of internet users and wide range of products offered by the e-commerce companies have propelled growth of the e-commerce industry in the recent years. Moreover, due to the e-commerce platforms, the end users are now able to buy products from any remote locations. For instance, according to Coherent Market Insights analysis, global e-commerce sales accounted for US$ 3.62 trillion in 2019, and is expected to reach US$ 6.54 trillion by 2022. Due to the rising e-commerce industry and developed mode of transportations, companies are able to sell their products in number of countries. E-commerce companies are using hybrid modes of transportation, which include air transportation to deliver the products across the regions. This is expected to drive growth of the air cargo and freight logistic market.
Furthermore the increasing consumer demand for perishable products is expected to drive the air cargo and freight logistic market during the forecast period. For instance, according to the Coherent Market Insights analysis the global perishable market accounted for US$ 13,200 million in 2018 and is estimated to exhibit a CAGR of 6.7% during the forecast period. Moreover, perishable food items such as mangoes weighting 52,320.6 tons were exported from India in 2018. Perishable food items require fastest mode of transportations such as air. Owing to all these reasons, the air cargo and logistic market is expected to witness significant growth over the forecast period.
However, high cost associated with the air transportation and high import tax implied in various countries are factors that are expected to hamper market growth over the forecast period. For instance, according to the World Trade Organization countries such as Iran and India have a tariff rates as high as 15.23% and 6.35% respectively.
Air Cargo and Freight Logistics Market Taxonomy
On the basis of destination type, the global air cargo and freight logistics market is segmented into:
On the basis of cargo type, the global air cargo and freight logistics market is segmented into:
- Industry Materials
On the basis of service type, the global air cargo and freight logistics market is segmented into:
On the basis of region, the global air cargo and freight logistics market is segmented into:
- North America
- Asia Pacific
- Latin America
- Middle East
Major players operating in the global air cargo and freight logistics market include Bollore Logistics, Cathay Pacific Airways Limited, CEVA Logistics, Air China Ltd, Deutsche Lufthansa AG, DHL Express (Deutsche Post), FedEx Corporation, Korean Air Co., Ltd, and Singapore Airlines