The global air freight sector is expected to grow from $56.48bn in 2020 to $64.98bn in 2021 (by 15%) as companies look for alternative modes of goods\’ transport to avoid supply chain disruption. It is forecasted that in 2025 the market will be worth $100bn.
This is according to the new market research by the Business Research Company that underlines how the sector has grown in response to the impact of Covid-19, the recovery and the global shipping crisis.
Despite air freight prices now being two-and-a-half times higher than pre-pandemic levels, some companies are turning towards it as a result of disruption in the sea freight sector.
With the holiday season approaching, companies are using air freight to make sure stock arrives on time. Delivery from the Far East by air is around five days end to end, compared with several weeks by ship.
Some shipping companies are looking at air freight as a longer-term option. Earlier this year, Amazon bought its first fleet of planes.
Maersk is looking to build air freight capacity as part of efforts to broaden its supply chain offering. It is buying Senator International, a Hamburg-based freight forwarder that operates around 19 flights a week. It also plans to expand its own fleet with three leased planes for next year and is set to buy two new Boeing 777 aircraft that will be in action by 2024.
Airlines shifted their focus towards cargo when lockdowns saw passenger numbers plummet at the height of the pandemic. Cargo previously represented about 10-15% of carriers’ revenues, but this has risen to about a third.
It is thought that ongoing uncertainty surrounding the Covid-19 pandemic and its impact on global trade would benefit air freight. DHL Global Forwarding predicts that demand for air freight will remain “robust” into 2022.
Source: https://www.export.org.uk/