Page 5 - STAT Trade Times Novemmber 2024 Magazine for Website

2023, with projections to surpass $50 bil-
lion by 2032. The report highlights that the
US leads this market due to its extensive
infrastructure, advanced logistics capabili-
ties, and significant demand from both
domestic and international markets.
Despite global economic uncertainties,
the sector has maintained steady growth,
driven primarily by e-commerce expan-
sion and the increasing demand for time-
sensitive deliveries.
According to the International Air Trans-
port Association's (IATA) September 2024
air cargo market analysis, North American
carriers saw 3.8% year-on-year demand
growth, and capacity increased by 4.2%.
The report also mentioned that inter-
national routes saw exceptional traffic
levels for a fifth consecutive month,
with a 10.5% year-on-year increase in
September, airlines are benefiting from
rising e-commerce demand in the US and
Europe amid ongoing capacity constraints
in ocean shipping.

Challenges and opportunities
facing the US air cargo industry
Explaining the challenges and opportuni-
ties in the US air cargo industry from an
airline perspective, a spokesperson from
United Cargo — the cargo division of
United Airlines, which provides a range of
air cargo services worldwide and primarily
ships goods in its belly cargo says, “There
are just as many challenges as there are
opportunities in the air cargo market in
the Americas. For us, it is primarily capacity.
Most of our widebodies are from the East
Coast to Europe, the Middle East, India, and
Africa (EMEIA), or from the West Coast to
the Asia-Pacific (APAC) region. We need
more widebodies going hub-to-hub, but
once we receive our new fleet, we hope
this will alleviate the capacity issues. Over
the summer, there were also many chal-
lenges involving the weather and climate
change. Florida and North Carolina were
hit particularly hard by Hurricanes which
caused service disruptions. Increased com-
petition is always a way to keep us on our
toes. Finally, as a passenger airline, we are
always dictated where we fly by our pas-
sengers — so cargo-friendly routes may
not be the ski resorts or island hopping
destinations tourists are looking for.
As for opportunities, we are looking
toward e-commerce to fill the gaps in

www.stattimes.com | NOVEMBER 2024 3