The global e-commerce landscape has been dramatically reshaped by China’s manufacturing prowess, with a ripple effect extending across the Asia-Pacific region and beyond.

It’s undeniable that the engine of the global e-commerce boom has been, and continues to be, China’s enormous manufacturing capacity. However, e-commerce is a highly dynamic sector, with new opportunities and trade lanes that can open up overnight.

“For the entire industry, the e-commerce boom has been a godsend. Currently, more than 10 percent of globally flown air cargo volumes is e-commerce,” Swissport’s Global Director of e-commerce Nikolai Schaffner stated.

“This is about ten times the volume seen as recently as 2019, marking a monumental shift. Post-Covid, as passenger wide-body capacity, has been ramping up slowly and freighter capacity has remained relatively constant, the industry would have faced a substantial supply-demand gap without e-commerce, so this boom has been extremely fortunate for us, providing much-needed support.

“Some of the forecasts for 2024 indicate a potential 40 percent annualised growth rate for e-commerce volumes. It’s clear that such high levels of growth aren’t sustainable indefinitely; eventually, the industry will hit capacity limits. However, e-commerce as a phenomenon is extremely sustainable and will be with us for many years.”

Changing habits

Evolving shopping behaviour plays a significant role in the growth of the e-commerce segment. Many buyers, especially in Western markets, have become accustomed to quick delivery, real-time tracking, and the ability to demand refunds if there’s a delay, all at a reasonable price. As such, when dealing with e-commerce, it is critical to take a proactive approach, engaging with the entire cargo ecosystem to meet the consumer’s needs.

“To succeed in working with an e-commerce operator, you must demonstrate not just a plan B, but also a plan C and maybe even a plan D. This level of preparation requires interaction with the entire supply chain,” Schaffner explained.

“We’ve shifted our mindset from being a ground handler focused solely on airlines to delivering solutions for the entire ecosystem.

“Our goal is to become the global leader in ground handling solutions for e-commerce operators, which requires us to be extremely flexible and agile” 

“Three factors—stability, efficiency, and speed—are all crucial to our e-commerce customers. Providing this balance is our daily bread and butter, ensuring we offer solutions that can handle the significant amount of cargo coming in.”

Enhancing other operations

e-commerce now sustains activity throughout the year, much like the broader air cargo industry. The volumes speak for themselves, as exports from e-commerce in China and Hong Kong alone reach around 10,000 tonnes per day. These are substantial figures, ensuring that even on slower days, activity remains robust.

While ground handling and carrier services will always remain the core of Swissport’s business, the company is always looking at how they can enhance the scope of their services in specific sectors, such as e-commerce, to reflect the growing opportunity.

“I think the ongoing e-commerce boom has been incredibly beneficial for the air cargo industry as a whole. This disruption has driven us to evolve our standards and meet the needs of end consumers,” Schaffner outlined

This move has provided a significant motivational boost for the entire air cargo industry to develop solutions and upgrade technological interfaces, which will have a lasting impact on the industry beyond the e-commerce sector.

“We are certainly investing, driven by robust expectations of the commercial opportunities available in the e-commerce space,” Schaffner outlined.

“Once we build these advanced tools, we can leverage them for various other solutions as well.

“This approach will have a tremendous knock-on effect on the products we offer, benefiting not just e-commerce-oriented agents but the entire air cargo ecosystem.

“In the long run, the disruption and innovative approaches that e-commerce operators bring will help us develop air cargo products that benefit not just e-commerce but the entire industry.

“This will be a transformational shift, and I believe that in 20 years, we’ll look back at this time as the beginning of a significant change.”