DESPITE increasing regulatory hurdles, e-commerce will continue to be a growth market for air cargo thanks to emerging markets and ongoing consumer demand.
During a discussion at the IATA World Cargo Symposium, Ludwig Hausmann, senior partner, McKinsey & Company asked panellists whether e-commerce would increase its air cargo market share of around 20-30 per cent today by 2030.
All panel members said they expected the market share to increase despite recent moves in the US to end the de minimis exemption for parcels from China and other countries also looking to implement restrictions, reports London's Air Cargo News.
Richard Broekman, chief commercial officer and head of sustainability, Atlas Air, said that there were still plenty of growth opportunities for e-commerce in emerging markets.
'Out of China e-commerce has been massive and now involves around 50 per cent of China outbound flows.
'The US is a very important market, and a lot of disruption is now coming but at the same time, these e-commerce companies supply the entire world.
'The US is a really important market but there is an entire world where there is a lot of growth still to be had.'
Nadeem Sultan, senior vice president of cargo planning and freighters, Emirates SkyCargo, agreed that tariffs of 20-30 per cent could be handled by e-commerce players given the average value of their shipments to the US is less than US$20.
He added that e-commerce had become a lifestyle choice and required air cargo to meet consumers' delivery expectations.
'If anything, people want [products] quicker and future generations are not going to be more patient than the current ones.'
Kendy Choi, director, commercial and partnership regional hub services, Cainiao, added that e-commerce platforms were already adjusting and targeting new markets as the process can take some time.
'The e-commerce platforms are already starting to position themselves into other markets,' she said. 'It will take time, it won't take a lot of time, but they have to take over a local player and think how they will differentiate themselves through different product offerings, and superior logistics, and then how will they go about [achieving] that.'
Ali Faddis, aviation safety and operations, Amazon Air Cargo, added that it would focus on its customers' needs in response to market changes.
'I think what is most important for us is that we are continuing to focus on our customers, both our Amazon traditional customers and our external air cargo customers and figuring out how to innovate on their behalf.
'We need to be flexible for our customers; we also need to be flexible as a business and figure out how to serve them the best way.'
SeaNews Turkey
During a discussion at the IATA World Cargo Symposium, Ludwig Hausmann, senior partner, McKinsey & Company asked panellists whether e-commerce would increase its air cargo market share of around 20-30 per cent today by 2030.
All panel members said they expected the market share to increase despite recent moves in the US to end the de minimis exemption for parcels from China and other countries also looking to implement restrictions, reports London's Air Cargo News.
Richard Broekman, chief commercial officer and head of sustainability, Atlas Air, said that there were still plenty of growth opportunities for e-commerce in emerging markets.
'Out of China e-commerce has been massive and now involves around 50 per cent of China outbound flows.
'The US is a very important market, and a lot of disruption is now coming but at the same time, these e-commerce companies supply the entire world.
'The US is a really important market but there is an entire world where there is a lot of growth still to be had.'
Nadeem Sultan, senior vice president of cargo planning and freighters, Emirates SkyCargo, agreed that tariffs of 20-30 per cent could be handled by e-commerce players given the average value of their shipments to the US is less than US$20.
He added that e-commerce had become a lifestyle choice and required air cargo to meet consumers' delivery expectations.
'If anything, people want [products] quicker and future generations are not going to be more patient than the current ones.'
Kendy Choi, director, commercial and partnership regional hub services, Cainiao, added that e-commerce platforms were already adjusting and targeting new markets as the process can take some time.
'The e-commerce platforms are already starting to position themselves into other markets,' she said. 'It will take time, it won't take a lot of time, but they have to take over a local player and think how they will differentiate themselves through different product offerings, and superior logistics, and then how will they go about [achieving] that.'
Ali Faddis, aviation safety and operations, Amazon Air Cargo, added that it would focus on its customers' needs in response to market changes.
'I think what is most important for us is that we are continuing to focus on our customers, both our Amazon traditional customers and our external air cargo customers and figuring out how to innovate on their behalf.
'We need to be flexible for our customers; we also need to be flexible as a business and figure out how to serve them the best way.'
SeaNews Turkey
