About Air Cargo
Air cargo service providers ship different kinds of goods by air, which are either for international or domestic customers. The cargo is either transported by passenger aircraft or dedicated freighter aircraft. The global air cargo market can be segmented by the two types goods that are transported, airmail and air freight. The transportation of mail via air is referred to an airmail service. Typically, airmail costs more than other modes of transportation but there is an advantage of the mail getting delivered faster.
Technavio’s analysts forecast the global air cargo market to grow at a CAGR of 4.76% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global air cargo market for 2017-2021. To calculate the market size, the report considers the volume transported by different vendors that provide air cargo transportation services to end-user industries such as manufacturing, FMCG and retail, pharmaceuticals and chemicals, and other industries.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Air Cargo Market 2017-2021
Technavio recognizes the following companies as the key players in the global air cargo market: Cathay Pacific Cargo, Emirates SkyCargo, FedEx, and UPS.
Other Prominent Vendors in the market are: AIR FRANCE KLM MARTINAIR Cargo, British Airways, CAL Group, Cargolux, China Airlines, Delta Air Lines, Deutsche Post DHL Group, Etihad Airways, Korean Air, Lufthansa Cargo, Qatar Airways Cargo, Saudi Airlines Cargo, and Singapore Airlines.
Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is expected rise in demand for temperature-sensitive products. Transporting and handling temperature-sensitive products gives rise to both challenges and opportunities for all cold chain industry participants. Businesses, such as pharmaceutical companies, depend on air transport for its speed in delivering high-value, time-sensitive, and temperature-controlled products.”
According to the report, one driver in the market is increase in e-commerce sales to boost air cargo market. One of the major factors driving the growth of the global air cargo market is the rise in e-commerce sales due to the increasing online sellers and rising number of online shoppers. Online sellers require air cargo facilities to deliver their products to customers on time because of which e-commerce is driving the air cargo market. For example, in March 2016, Ohio-based Air Transport Services Group (ATSG) announced one of the major agreements, where ATSG would start an Amazon dedicated air freight operation, carrying cargo between Amazon fulfillment centers in the US.
Further, the report states that one challenge in the market is expected rise in jet fuel prices. Companies operating in the global air cargo market are sensitive to the rising fuel prices, which is one of the important and major operating cost for any of the vendor in the air cargo market. The decline in the prices of crude oil was due to the surplus because of increased production by countries, such as Russia and Canada, and removal of sanctions on Iran. Moreover, the US has increased its production of oil due to the use of fracking technology. However, this surplus is expected to slow down.
Cathay Pacific Cargo, Emirates SkyCargo, FedEx, UPS, AIR FRANCE KLM MARTINAIR Cargo, British Airways, CAL Group, Cargolux, China Airlines, Delta Air Lines, Deutsche Post DHL Group, Etihad Airways, Korean Air, Lufthansa Cargo, Qatar Airways Cargo, Saudi Airlines Cargo, and Singapore Airlines.