This article is part of the “Logistics of the Future” series looking at the best logistics startups today.
Air cargo: Don’t think of it as the “little brother” to passenger planes. While the industry may be in the shadow of passenger airlines or maritime logistics, the rapid rise of e-commerce has seen air cargo grow in size and importance over the past few years. The industry accounts for an average of 51.2 million tonnes being moved every year, and that number is only increasing.
According to the International Air Transport Association (IATA), air cargo demand grew by 3.5 percent in 2018 as measured by freight-tonne kilometers, and the IATA’s latest Business Confidence Survey said airlines expect freight volumes to continue increasing in 2019. Demand is such that Boeing is increasing production of the Boeing 767 Freighter to three airplanes per month in 2020 – their third rate-hike on the model, which represents a doubling of production since 2016. Not only are traditional air cargo methods increasing, but NASA is also estimating that there will be 2.6 million commercial drones in the skies by 2020.
Air cargo is innovating and moving ahead rapidly, but it should be noted that it is still by far the most expensive method of shipping: Air cargo accounts for just 1 percent of global shipping by volume but 35 percent of it by cost. Startups in this space are always devising new ways to combat such costs and boost efficiency for the benefit of both the consumer and the logistics/transport company.