In recent years, e-Commerce has been booming, and as a result, the air freight shipping industry has been feeling the impact. e-Commerce is having a major influence on how shipments are being routed and shipped, resulting in changes for the air freight shipping industry.
What is e-Commerce?
e-Commerce, or online shopping, refers to buying and selling goods and services over the internet. It enables businesses and consumers to conduct transactions without needing a physical storefront. e-Commerce has revolutionized how we do business, making it easier and more convenient than ever before to buy and sell products and services.
There are two main types of e-Commerce: business-to-consumer (B2C) and business-to-business (B2B). B2C e-Commerce refers to transactions between businesses and consumers, such as online retail shopping. B2B e-Commerce, on the other hand, involves transactions between businesses, such as wholesale ordering. Other types of e-Commerce include mobile commerce (m-Commerce) and social commerce (s-Commerce).
Why is e-Commerce Growing?
From the rise of social media to brand ambassadors with a more extensive reach, there are several reasons why e-Commerce continues to grow.
Online retailers have given consumers more choices regarding product selection, pricing, and convenience. You can simply log on to your computer or mobile device and shop around until you find the best deal possible from an online retailer that meets your needs.
Traditional brick-and-mortar stores are closing, and many consumers are choosing to do their shopping online, where they feel they can get a better deal and their purchase is shipped to them.
Mobile commerce is becoming increasingly popular as smartphones and other mobile devices become more advanced and easier to use. Technology is making it easier than ever before for consumers to shop online.
Millennials (those aged 18-34) are now the largest consumer group in America and the most active group when it comes to shopping online. And as this generation ages, their spending habits are only likely to increase even further, boosting e-Commerce growth for years to come.
How Does e-Commerce Growth Affect the Air Freight Shipping Industry?
The boom in e-Commerce has had a generally favorable impact on the air freight industry. Air cargo accounts for up to 35% of an airline’s revenue, with e-Commerce shipments making up approximately 22% of air cargo. This positive relationship between the e-Commerce sector and air carriers has led to some significant changes as air cargo services and carriers race to adapt to e-Commerce growth.
Use of Passenger Planes
Although air freight carriers have some of the largest aircraft available, including the mammoth Antonov An-225 with an astonishing 559,580-lb. payload, many carriers are resorting to using passenger craft for freight shipments.
For many carriers, it is more cost-effective to convert old passenger planes to air freighters rather than purchase new cargo planes. Passenger craft transporting air cargo also typically arrive at their destination faster than conventional cargo planes, which often need multiple stops to refuel, increasing their transit time.
This means shipping by air using passenger planes is ideal for small shipments of time-sensitive goods, like perishable seafood products or agricultural produce.
According to a recent survey, 85% of consumers require total visibility of shipping timelines before making an online purchase. This means the air freight industry needs to invest in automation and tracking technologies to increase supply chain transparency to meet customer demands.
Technologies like blockchain allow customers to track their shipments at nearly every stage of the shipping journey.
Faster Shipment Times
Global e-Commerce giants like Amazon drastically changed the air freight industry with their promise of free two-day delivery, with many other online retailers following suit. This meant that the only way for consumers to receive their goods on time was to use air freight; however, to increase shipment volumes to accommodate the increase in goods, carriers must increase freight rates.
Air freight already costs approximately four times the price of ocean freight. However, a recent 2021 Omnitracs survey demonstrated that 65% of online consumers would be willing to pay more for faster delivery services.
Sustainable Air Freight Services
Online consumers are becoming increasingly aware of the impact of the supply chain on the environment and are now demanding fast shipping options that align with their eco-conscious values. Unfortunately, air freight has the highest emissions count of any mode of transport; the average air cargo plane produces 435 grams per tonne-km compared with ocean freight which only emits 3 grams per tonne-km.
To reduce the environmental impact and meet consumer demand, the International Air Transport Association (IATA) is developing strategies, including alternative fuels, automating processes, eliminating packaging waste, offsets, and carbon capture.
What to Look for in an International Shipping Company
When shipping internationally, you want to ensure you are working with a reliable and experienced shipping company that can get you the best international air freight rates.
There are a few things you should look for when choosing an international shipping company:
Comprehensive Range of Services
You want to ensure the company you choose offers a full range of services, from door-to-door transportation and warehousing to customs clearance and tracking.
An Experienced Team
The company you choose should have a team of experienced professionals, including freight forwarders and customs broker partners, who can handle your shipment from start to finish.
A Worldwide Network
The company should have a network of import and export partners and agents worldwide, so they can handle your shipment no matter where it is going.
A Commitment to Customer Service
The company should be committed to providing excellent customer service, so you can be confident that your shipment will arrive on time and damage-free.
Asiana USA is a leading international shipping company that meets all these criteria. We have a comprehensive range of services, an experienced team, and a worldwide network that allows us to ship to any country worldwide.
We are also committed to providing excellent customer service, so you can be confident that your shipment will arrive on time and damage-free. Contact us at (855) 500-1808 for a free quote on your next international shipment.