Page 14 - STAT Trade Times Novemmber 2024 Magazine for Website

industryreport

Key reason for the

increase is the
emergence of brands

like Temu and Shein, but
if we take a step back,

the real reason is that
these brands are giving

people what they want -
the right product at the

right time.
E-commerce, especially between China While we have seen some modest in-
Sebastien Podgorski
WebCargo by Freightos and major markets like Europe and the creases in e-commerce demand on specific
U.S., continues to drive significant air cargo trades, volume on key trade lanes has grown
border shipping has become so easy that demand, with a significant portion of Cathay by as much as 50 percent year-on-year,
retailers no longer need a distribution center Cargo's Greater Bay Area shipments being according to Derek Lossing, Founder and
in every destination country. related to e-commerce, says Tom Owen, Senior Industry Advisor: E-Commerce and
"The cross-border market is very substan- Cathay Cargo Director. "The combination of Transportation, Cirrus Global Advisors. "It’s
tial. At DHL eCommerce, we see around consumer trends and trade volume spikes hard to detail specific increases as the data is
eight billion shipments a year travelling has made 2024 the year of e-commerce." not always clear on a lane level from industry
across borders, worth about $500 billion." While it's hard to pinpoint the exact sources.What we can tell from U.S. Customs
Customers are highly unlikely to buy increase in e-commerce volumes for 2024, and Border Protection (CBP) data and other
something unless there are return options, we all know that it's sizable, says Sebastien aircraft operations is that South China con-
adds Schoenemann. "If these are limited, Podgorski, Vice President, Airline Solutions, tinues to lead the growth category. Most of
shoppers may refrain from buying as they WebCargo by Freightos. "We're probably at the growth is being driven by three factors:
don’t want to deal with a complicated the equivalent of 200-250 freighters per day 1. Growth in popularity of websites and apps
returns process. It needs to be seamless (in capacity) which is astonishing. The key such as Temu, Shein and Quince;
and straightforward – just like the domestic reason for the increase is the emergence of 2. Increased access to faster & cheaper
returns process. DHL eCommerce offers an brands like Temu and Shein, but if we take a shipping options from multiple countries
unparalleled cross-border return product step back, the real reason is that these brands around the world, not just China, enabling
called Parcel Connect Return covering are giving people what they want - the right global e-commerce at a price point far
Europe with a single integration." product at the right time. This is the same below the traditional integrators; and
As much as 97 percent of online buyers reason that logistics companies historically 3. Technology and data that enables cross-
say delivery options influence where they chose air cargo but now the same decision- border compliance and solutions that are
shop online. The majority of cross-border making is in the hands of the consumer." more scalable than ever before."
shoppers (88 percent) want end-to-end Experts are predicting an increase in holiday An overwhelming 93 percent of Ameri-
tracking of their orders from abroad. Almost sales this year over last year, "and just as in cans believe that clothes don’t need to be
80 percent of cross-border shoppers say the years past, UPS is positioned to deliver the expensive to offer lasting value, according to
delivery provider is an important element reliable service that customers depend on, an online study conducted for Shein by The
in decision making for online purchases, especially during the important holiday shop- Harris Poll. The survey, which covered over
according to the DHL survey. ping season," says an official spokesperson. 2,000 adults, also found that price and quality
12 | NOVEMBER 2024 www.stattimes.com