The global air freight sector is experiencing significant growth and transformation, with the market expected to rise from $56.48bn in 2020 to $64.98bn in 2021 — an increase of 15% — as businesses seek alternative transport solutions to avoid ongoing supply chain disruption. Looking further ahead, industry forecasts suggest that by 2025 the air freight market could be worth as much as $100bn worldwide.
According to new research from The Business Research Company, the sector’s expansion has been driven largely by the impact of Covid-19, the subsequent economic recovery, and the wider global shipping crisis. As traditional supply chains came under strain, businesses were forced to reassess their logistics strategies and prioritise speed and reliability over cost.
Although air freight rates are now approximately two-and-a-half times higher than pre-pandemic levels, many companies are still turning to air cargo as congestion, port delays and container shortages continue to disrupt sea freight services. For time-sensitive shipments, particularly high-value or seasonal goods, the speed of air freight provides a crucial advantage.
With the holiday season approaching, retailers and manufacturers are increasingly using air freight to ensure stock arrives on time and shelves remain full. Transit times from the Far East to Europe or the UK can take as little as five days end-to-end by air, compared with several weeks by sea. This dramatic difference in delivery time can protect sales revenues and customer satisfaction during peak trading periods.
Some major logistics players are also viewing air freight as a longer-term strategic investment. Earlier this year, Amazon purchased its first fleet of aircraft to strengthen its distribution network and reduce reliance on third parties. Meanwhile, Maersk is actively expanding its air freight capacity as part of a broader strategy to diversify its supply chain services. The company is acquiring Hamburg-based freight forwarder Senator International, which operates around 19 flights per week. Maersk also plans to lease three additional aircraft next year and has committed to purchasing two new Boeing 777 planes, expected to enter service by 2024.
During the height of the pandemic, airlines shifted focus toward cargo operations as passenger numbers collapsed. Previously accounting for around 10–15% of airline revenues, cargo now represents roughly one-third of total income for many carriers.
With continued uncertainty surrounding Covid-19 and global trade conditions, demand for air freight is expected to remain strong. DHL Global Forwarding predicts that air cargo demand will stay “robust” into 2022 and beyond, reinforcing the sector’s positive long-term outlook.
Source: https://www.export.org.uk/
