Cargo airlines face an “adjustment window” with regard to e-commerce that requires immediate attention if there is any chance of remaining relevant in the digital age.This was one of the findings of a recent study conducted by the International Air Transport Association (Iata) into e-commerce and its impact on the cargo sector.While 2020 could hardly be described as an ordinary year in any industry, the airline industry in general was extremely hard hit. With the entire world locked down due to quarantine policies, airlines were forced to ground entire f leets.This affected the air cargo sector where demand decreased by 10.6% compared to 2019, the most significant drop year-on-year. Cargo load factors, yields and revenues, however, rose to record-high levels.The industry reached its lowest point in April and has since been in recovery mode – driven to a large extent by vaccination rollouts globa lly.According to an Iata report – e-Commerce Strategies for Air Cargo Airlines – changes in shippers’ behaviour due to the Covid pandemic will transform air cargo more than anything else.“With so many changing trends in motion, air cargo needs to work on rebuilding its industry now. Adapting their strategy to capitalise on e-commerce is critical for the restart,” reads the report. The impact of Covid-19 on e-commerce is undisputed. While many consumers were driven to online platforms out of necessity, they have opted to continue using e-commerce out of choice.Online sales in the UK in January this year accounted for 35.2% of all retail, a record that beat even last May’s high of 34.1%, when the coronavirus crisis was at its first peak.Data by McKinsey indicates that in the US, the rate of e-commerce penetration grew by ten years in a 90-day period in 2020, reaching around 33%.Experts agree that one year after the start of the pandemic consumer behaviour with regard to online retail is established. New variants of the coronavirus would continue, as in 2020, to boost e-commerce sales. According to Iata, the air cargo industry will have to adapt to e-tailers’ needs, delivering dedicated products to the sector while also focusing on new processes for operations. “This is critical if airlines want to capture e-commerce volumes. Industry stakeholders must prioritise the digitalisation of their air cargo operations. This will be the main game-changer if they are going to keep up with online retailers,” reads the report.An Iata spokesman said a strategy change was necessary for air cargo operations where the focus was on e-commerce products and services to build market share. “Airlines must also digitise to increase speed. Airlines must support transparency by digitally integrating with their business partners. This includes the integration of data f lows between airlines and other parties.”The report also found that airlines would have to analyse how they handled cargo to not only deliver responsive, timeous and efficient services, but also new products that the market would increasingly be demanding.Digitalisation of air cargo operations will be the main game-changer if airlines are going to keep up with online retailers.– Iata“
