The 9th Air Cargo Conference hosted by the Air Cargo Community Frankfurt at the House of Logistics and Mobility (HOLM), brought together over 300 industry leaders to discuss key trends shaping the air freight sector. The topics evolved around e-commerce growth, sustainability, and external challenges, emphasizing the Air Cargo Community’s vital role in driving innovation and addressing global complexities.
E-Commerce: A Key Growth Driver
The surge in e-commerce has significantly impacted logistics, with air freight playing a critical role in fast, reliable deliveries. Cross-border e-commerce, led by companies like TEMU with 7% of the global market, and SHEIN, was a major point of discussion, driving increased cargo volumes at major hubs like Frankfurt (FRA).
Tobias Wöffel, a Senior Expert and member of McKinsey & Company’s Transport, Logistics and Infrastructure Practice, thus expressed confidence in FRA’s infrastructure to handle the growing demand. To capitalize on this boom, air cargo operators need to focus on single shipment handling, expand network coverage, and improve last-mile delivery. Mastering data flow from origin to destination will be crucial for staying competitive in this evolving market, according to Wöffel.
Sustainability: A Strategic Imperative
Sustainability remains a top priority for the air freight industry as it faces increasing pressure to reduce carbon emissions. The conference addressed the sector’s role in fostering greener practices and meeting IATA’s and ICAO’s ambitious net-zero CO2 targets. Sustainable Aviation Fuel (SAF) emerged as a key element in these discussions. However, SAF production faces significant challenges, with only one-third of the required supply expected to be available by 2030.
Fleet renewal is expected to contribute 20%-30% to CO2 reduction, but delays in aircraft production and high SAF costs remain barriers. Despite Boeing’s commitment to 100% SAF in its future aircraft, continuous innovation is essential to meet the industry’s environmental goals.
External Influences on Logistics Operations
The air cargo industry is heavily influenced by external factors, including geopolitical events and trade disruptions. Operational costs are forecasted to rise by 1% annually from 2023 to 2033, prompting air carriers to streamline their operations. Cargo rates have already increased 20%-30% above pre-COVID levels, adding pressure to control costs while maintaining service quality. Since cross-border e-commerce now accounts for 50% of global commercial shipments, digitalization in managing the growing volume of small, frequent shipments is gaining importance.
German Foreign Trade: Trends and Risks
Dr. Vincent Stamer, a Senior Economist at Commerzbank AG, discussed trends and risks in German foreign trade and highlighted that post-pandemic Germany’s exports reached €1.6 trillion in value, but inflation-adjusted volumes have declined. Exports to China fell €45 billion short of expectations. Since 2023, the United States has overtaken China as Germany’s largest trading partner. Germany faces a critical labor shortage, necessitating a focus on producing high-value goods. The diversification of supply chains by moving production to multiple countries is seen as essential to mitigate risks. The Red Sea crisis also boosted European air cargo, especially towards the Middle East and Southeast Asia.
German Foreign Trade: Trends and Risks
Dr. Vincent Stamer, a Senior Economist at Commerzbank AG, discussed trends and risks in German foreign trade and highlighted that post-pandemic Germany’s exports reached €1.6 trillion in value, but inflation-adjusted volumes have declined. Exports to China fell €45 billion short of expectations. Since 2023, the United States has overtaken China as Germany’s largest trading partner.
Germany faces a critical labor shortage, necessitating a focus on producing high-value goods. The diversification of supply chains by moving production to multiple countries is seen as essential to mitigate risks. The Red Sea crisis also boosted European air cargo, especially towards the Middle East and Southeast Asia.
Aircraft Delivery Delays: A Growing Issue
Björn Walther, CFO at Condor Airlines, addressed the growing issue of delays in aircraft deliveries, drawing on the airline’s experience in modernizing its fleet. These delays, caused by workforce shortages and supply chain constraints, are becoming more frequent. However, the benefits of modern fleets – lower fuel consumption and reduced maintenance costs – outweigh the challenges. Fleet renewal remains critical for meeting environmental regulations and reducing operational costs.
The Path Forward
The Air Cargo Conference 2024 highlighted that e-commerce and sustainability will continue to be key drivers in shaping the future of air freight. The rapid growth of e-commerce will require air cargo operators to enhance their digital capabilities, expand infrastructure, and adopt new technologies to meet rising demand.
On the sustainability front, progress has been made, but challenges remain—particularly around scaling SAF production and overcoming operational hurdles. Continued innovation and collaboration among industry leaders, policymakers, and technology providers will be essential to achieving long-term carbon reduction targets. The Air Cargo Community remains a crucial force in shaping the industry’s future. The insights gained at this year’s conference will influence strategic decisions in the years to come as the sector navigates the dual challenges of e-commerce expansion and sustainability.
This report was contributed by Anastasia Kazantzis,
Head of Public Relations, Riege Software International GmbH, Meerbusch / Dusseldorf
