The air freight sector has undergone a massive upheaval in the past 12 months, including enormous disruption to capacity supply and demand patterns, tremendous pricing volatility, as well as huge operational challenges such as quarantine regulations and staffing issues with border restrictions.
Here is some interesting information about the freight industry; air cargo only accounts for 1% of the total cargo shipped in the world, however it accounts for 35% of the total value. E-commerce has grown tremendously during the pandemic, with air cargo companies looking to enhance and capitalize on their roles in E-commerce logistics.
The Air Cargo Service market revenues are expected to grow from $48 billion in 2020 to $64.98 billion in 2021 at a compound annual growth rate of 15%, whereas, the market is expected to reach $99.76 billion in 2025 at a CAGR of 11%. This research suggests growth in this sector will be significantly high in coming years, which will result in many shared operational and technological transformations.
Segmented into Air Mail and Air Freight, the Air Cargo transport services market consists of sales of air cargo transport services and related goods by entities that use aircraft, such as airplanes and helicopters to provide air transportation of cargo and mail on a contract basis over fixed international routes. When it comes to the highest traffic, Asia Pacific was the largest region in the global air cargo services market, accounting for 40% of the market in 2020. North America was the second largest region accounting for 26% of the global air cargo services market. It will be interesting to see what 2021 and 2022 has in store for this market.