Page 29 - STAT November 2022 for Magzter

E-commerce: package out of five is brought online. That and one of them being worldwide inflation
The only bright spot means more parcels and less consolidation.” which has impacted purchasing power. Even
Everything in the world economy may seem He also pointed out that 80 percent of if you look at Purchasing Managers’ Index
grim at this point in time but there are things cross-border e-commerce is shipped by air (PMI), which is a key indicator, export orders
to be positive about. because of the speed advantage and the have also fallen which is in line with the
“We still have the GDP growing. We are need to deliver faster. He was citing Alibaba's reduced purchasing power of the consum-
not going negative. The growth is slowing promise to deliver domestically in China ers. PMI has fallen more on the Asia Pacific
down but the world economy is still growing within 24 hours and globally within 72 hours. side which is one of the biggest exporting
which is a positive sign for the airfreight in- In 2021, e-commerce generated 131 billion regions,” he said.
dustry in general,” said Neel Jones Shah, EVP parcels which is already three times more On the same line, the Association of Asia
of airfreight strategy and carrier develop- than in 2014 and it will also double to 260 bil- Pacific Airlines (AAPA) in its September 2022
ment at Flexport, while hosting the Logistics lion parcels in 2025, according to him results also reported that international air
Rewired: Air Market Update webinar by cargo markets remained under pressure, “as
Flexport on October 13, 2022. Prepare for the unpredictable export activity was hampered by depressed
He particularly pointed out the develop- Meanwhile, on October 5, 2022, Randy business and consumer confidence levels
ments in the e-commerce industry and its im- Stanley, vice president of international air amid a deterioration in global macroeco-
pact on airfreight. “We still have pretty good freight at UPS, while giving an update on the nomic conditions.”
e-commerce growth. Although it is slowing, global air freight market, noted that the mar- Subhas Menon, AAPA Director General
cross-border e-commerce continues to grow ket should be prepared for unpredictable said, “The outlook for the cargo market re-
in a very very strong way. And that is typically experiences that we may experience citing mains subdued in the near term. Overall, the
one hundred percent airfreight,” he said. the impacts of the Covid-19 pandemic and region’s airlines continue to face a challeng-
IATA in a market outlook webinar con- Ukraine-Russia conflict in last two years. ing operating environment, with operating
ducted on October 5, 2022, also stressed the “The demand has declined from the air costs under pressure as a result of high fuel
developments in the e-commerce segment freight perspective. There has been less prices and weak local currencies.”
and the volume it brings to air cargo. demand for manufactured goods in the last
Andre Majeres, head of e-commerce and three months.” He also reported that the Demand vs supply
cargo operations, IATA, “More and more re- ocean freight, which shifted to air before, is Talking about the peak season, Chatter-
tail is sold online and that has an impact on now going back to the ocean. jee said, “We are not expecting a surge in
the logistics chain and on air cargo opera- Indraneel Chatterjee, global airfreight volumes compared to our previous experi-
tions. The online penetration or online retail product development at DHL Global For- ences and it will remain low as inflation will
sales is at around 22 warding, pointed out the volume drop in continue into next year. But there are certain
percent of total July and how it continued to be low during sectors that will show resilience, especially in
retail which the market update webinar on October 19, the technology industry because there are
means one 2022. “There are many underlying factors product launches already in the plan.”

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