Air Cargo E-Commerce & COVID-19 Impact

52%of consumers bought more online during the COVID-19 crisis 74%growth in global online retail sales average transaction volumes in March compared with the same period last year 200%growth in online sales of home appliances, Personal Protection Equipment (PPE) and food and health products • Shifts on international trade, as border restrictions place the focus An opportunity for transformation on local purchasing. Air cargo e-commerce and COVID-19 impact • Software-driven process changes, including artificial intelligence (AI) and the internet of things (IoT), as Since early March, we have seen e-Commerce: key for air cargo social distancing and business-conti- how COVID-19 has changed the In 2019, e-Commerce only repre- nuity needs accelerate their develop- world. It forced governments to sented 14% of the total retail sales. ment. close borders and take drastic This means there is much room for • Shifts in markets’ domestic measures to protect people and growth as consumers continue to commerce, driven by changing ensure essential services. The ban move online. In the last year, IATA consumer behaviors and the growth on social gatherings, the closing of studied whether the air cargo supply of e-commerce. stores, restaurants, grocery shops, chain was ready for this tsunami of gardening centers, theatres and parcels and how airlines could adapt • Machine-driven process changes, concerts have led consumers to live to benefit from this growth. as the perception of investments in their lives online, including shop- automation improves, speeding up The annual value of global e-com- ping. its development. merce sales of goods reached 2 In September, IPC reported that more trillion USD and was forecasted to Building supply chain resilience than half of consumers bought more exceed 4.4 trillion by 2025. e-Com- With a forecasted delay and uncer- online during the COVID-19 crisis. It merce air cargo was expected to tainty in the global economy’s is now sure that those consumers grow at 10% annually from 2019 to recovery and a more prolonged who suddenly discovered the 2025. However, during the pandem- impact on markets, teleworking and benefits of e-commerce continue to ic, DHL eCommerce Solutions travel restrictions in existing and go online for their shopping in the already observed a volume growth of newly affected countries are length- future. Sales of home appliances, more than 28% in cross-border ening supply chain disruptions. volumes from February to March Personal Protection Equipment (PPE) As a counter effect, e-Commerce will 2020. In fact, global online retail sales and food and health products grew be a resilience for manufacturers have risen dynamically in March, with by more than 200%. worldwide and a social relief for a a 74% growth in average transaction locked-down population. In parallel to the rise of electronic volumes compared with the same retail and the changes to consumer period last year. behavior, the air cargo industry has suffered a severe capacity crunch. Accelerating transformation The reduction of 95% in the use of The current global crisis and the This is the first of a series of passenger aircraft made it also very challenges faced by air cargo are articles on how the air cargo difficult to ship cargo and mail in contributing to magnify further the supply chain can capitalize on lower holds and kept doing so. five forces transforming the industry: e-commerce. Responding to the boost of • Digitalization of operational cross-border e-Commerce has processes, as companies move to www.iata.org/ecommerce become a significant challenge for reduce manual labor. the industry. e-Commerce Insights October 2020.

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