The numbers don’t lie: e-commerce is rewriting the playbook for global air cargo. According to McKinsey, e-commerce has surged to claim an additional 10% of air cargo volumes in just five years and is on track to dominate a third of the market. IATA data highlights the sector’s explosive 10-12% annual growth post-pandemic, with airfreight now moving a staggering 80% of cross-border e-commerce goods. And the trend shows no signs of slowing down. Airlines are thriving as shippers double down on airfreight to meet the soaring expectations of today’s instant-gratification economy. With Asia—and Hong Kong in particular—at the epicentre of this revolution, the industry is transforming to meet the pace of a digitally-driven, always-on global economy.
Embracing the wave
Airlines, logistics providers, and industry stakeholders are innovating at every level to accommodate this e-commerce boom. Hong Kong, a pivotal hub for global logistics, has seen its air cargo volumes shift significantly in favour of e-commerce. Kevin Shek, Vice President, Asia & Pacific at Cargolux, shares that 60-65% of Cargolux’s outbound cargo from Hong Kong now comes from e-commerce shipments. This surge is indicative of a larger trend sweeping through the logistics sector, as companies adjust their strategies to handle smaller, more frequent shipments tied to e-commerce.
Similarly, Kenny Li, Managing Director of AWOT Global Express (HK) LTD, notes that his company sees 50-60% of its business from Hong Kong as coming from the e-commerce sector, with the remainder stemming from other customer segments. “This proportion has been relatively stable over recent years,” Kenny explains: “but the tonnage has grown significantly, reflecting both the increasing demand for e-commerce products and the expanded capacity of carriers.”
In line with these observations, Cainiao, the global leader in e-commerce logistics, has reported remarkable growth in its operations driven by the rise of e-commerce, with daily cross-border and international parcel volumes surpassing 5 million in FY 2024. This shift has become a defining factor for Hong Kong’s logistics performance, with the city’s cargo hubs increasingly acting as the central distribution points for e-commerce goods traveling to and from China. Thomas Yu, Senior Director of Global Hub Services of Cainiao Group, highlights that the company’s global logistics network spans over 200 countries and regions, creating one of the largest networks in the world. “We have designed our global express and supply chain network to be highly resilient and adaptable, ensuring we meet the growing e-commerce demands,” Thomas shares.
These small, frequent shipments fill capacity gaps left by traditional freight, allowing us to optimise the space on every flight.
─ KEVIN SHEK
Vice President, Asia & Pacific, Cargolux
Why airfreight matters
As the scale of global e-commerce expands, so does the demand for more efficient, faster logistics. The reasons for this shift are multi-faceted and go beyond simply transporting products from point A to point B. For businesses in the e-commerce sector, speed is not a luxury but a necessity. Thomas highlights that airfreight is integral to meeting the high demands of today’s consumers.
Thomas states: “The competitive edge in e-commerce lies in speed, the quicker the products are delivered, the better the customer experience. Airfreight allows e-commerce companies to get products to consumers across the globe at a speed that no other mode of transport can match.”
One of the crucial aspects of airfreight that aids in the fulfilment of e-commerce’s demands is its ability to handle smaller, high-frequency shipments. Traditionally, airfreight was used to move bulk cargo between manufacturing centres and distributors. Now, as Kevin points out, airfreight has been repurposed to manage the flow of individual consumer orders. Kevin explains: “These small, frequent shipments fill capacity gaps left by traditional freight, allowing us to optimise the space on every flight.”
For logistics providers, this shift represents both a challenge and an opportunity. On one hand, it requires significant investment in capacity, technology, and operational flexibility. On the other hand, it offers a chance to tap into a growing sector that is crucial to the future of global trade.
A post-COVID world
The COVID-19 pandemic accelerated the transition from brick-and-mortar retail to online shopping, with millions of consumers turning to e-commerce for the first time. Kenny notes that this rapid shift caused a surge in demand for logistics providers capable of delivering e-commerce shipments at unprecedented speeds. Kenny says: “The pandemic forced many retailers and logistics companies to adapt quickly. People who had never shopped online before were suddenly looking for fast delivery, and airfreight became the only reliable solution to meet that demand.”
While the pandemic may have initially driven some retail businesses to shift online, he also points out that many consumers have developed new shopping habits that are likely here to stay. “People have become accustomed to the convenience of e-commerce,” he says. “There may be a return to some brick-and-mortar shopping, but the overall trend towards online retailing will continue, especially in the post-pandemic era.”
The statistics support this long-term trend: e-commerce is expected to account for 41% of global retail sales by 2027, up from just 18% in 2017, according to new research from Boston Consulting Group. The increased preference for online shopping, coupled with advancements in technology, means that e-commerce will continue to be a major driver of airfreight volumes.
“The statistics support this long-term trend: e-commerce is expected to account for 41% of global retail sales by 2027, up from just 18% in 2017.”
Regulatory challenges
E-commerce has brought its own set of regulatory challenges that have forced airfreight providers to innovate and adapt. New customs procedures like the Air Cargo Advance Screening (ACAS) pre-declaration system in the U.S., Import Control System 2 (ICS2) in the EU, and the soon-to-be-implemented Pre-Loading Advance Cargo Information (PLACI) in the UAE, require freight forwarders and cargo handlers to ensure compliance with increasingly stringent regulations.
Kenny highlights the importance of technology in meeting these challenges: “To accommodate the special needs of e-commerce traffic, we’ve enhanced our IT systems, enabling more efficient e-filing processes. Additionally, we’ve set up SOPs and regular review meetings with our partners to monitor and ensure compliance,” he says. “This allows us to stay ahead of the regulatory curve.”
Kenny goes on to mention that ground handling is pivotal in meeting these regulatory requirements, ensuring that shipments are processed quickly and accurately at every stage of the journey. AWOT Global Express, like many others in the sector, has streamlined operations, from customs clearance to cargo handling, in response to these new requirements.
Thomas, reflecting on the importance of ground handling, shares: “We have integrated cutting-edge technology across every stage of the logistics value chain, making our operations more transparent, efficient, and cost-effective. For example, our Automated Customs Clearance System—which leverages IoT, smart hardware technologies, and simplified processes—enables us to complete customs clearance for thousands of cross-border parcels in a matter of seconds.” This system, he notes, connects seamlessly with over 100 key ports worldwide, enhancing the speed and efficiency of cross-border deliveries.
For e-commerce businesses, meeting regulatory requirements has become a critical part of the logistics process. Kevin of Cargolux agrees, emphasising that technology-driven solutions are key to ensuring smooth operations in today’s increasingly complex regulatory environment.
Building resilient supply chains
Logistics providers are now focusing on enhancing resilience by diversifying their operations and securing dedicated freighter capacity. Thomas points out that as the global supply chain continues to face increasing complexity, companies must be ready to navigate these challenges. “Flexibility and adaptability are key to maintaining service levels, particularly during unexpected events,” Thomas explains.
Kenny sees dedicated freighter capacity as one way to ensure resilience: “Shippers are increasingly securing freighter capacity to guarantee reliability. This ensures that even in times of disruption, goods can continue to flow without delays.”
The Hong Kong advantage
Hong Kong continues to be one of the most important airfreight hubs in the world. As a major transshipment point for e-commerce goods, the city’s logistics infrastructure has been continuously upgraded to handle the rising volume of e-commerce shipments.
Kevin credits Hong Kong’s world-class facilities and strategic location in the Asia-Pacific region for its continued dominance in the airfreight sector. “Hong Kong’s connectivity is unrivalled,” he says. “The city acts as a vital gateway for e-commerce goods moving between China and the rest of the world.”
"Hong Kong plays a pivotal role in our global logistics strategy. As one of the busiest and most efficient airports in the world, it serves as a critical node in our cross-border express network."
─ THOMAS YU
Senior Director of Global Hub Services, Cainiao Group
For AWOT Global Express, Hong Kong has proven to be an essential hub for its e-commerce shipments. Kenny points out that the city’s ability to quickly adjust its operations to meet changing needs has made it the perfect location for e-commerce logistics. Kenny says: “Hong Kong’s adaptability and its ability to bring together the best carriers, ground handlers, and forwarders, as well as its quick extra flight permit approval, make it the perfect base for e-commerce logistics.”
Thomas further underscores Hong Kong’s importance, stating, “Hong Kong plays a pivotal role in our global logistics strategy. As one of the busiest and most efficient airports in the world, it serves as a critical node in our cross-border express network.” He adds that Hong Kong’s combination of strong airfreight capabilities and proximity to major shipping ports allows for effective integration of air and sea freight operations. Its strategic location ensures unmatched connectivity to global markets, particularly in Asia, positioning it as an essential hub for international express services.
Cainiao also operates an e-hub in Hong Kong, situated next to the airport, further solidifying the city’s role as a crucial node in their global logistics network.
"As long as the price of goods remains competitive, the changes in de minimis thresholds in the U.S. may not significantly affect overall e-commerce trade. "
─ KENNY LI
Managing Director , AWOT Global Express (HK) LTD
Growth and innovation
The future of e-commerce logistics is bright, with sustained growth expected in the coming years. Thomas cites research predicting that e-commerce logistics will account for 26.7% of total retail logistics by 2027, up from 18.7% in 2022. This trajectory is driven by factors such as rising internet penetration, technological advancements, and the increasing adoption of online shopping among younger generations.
However, market dynamics are evolving. The changing landscape of global e-commerce trade, particularly with the de minimis threshold adjustments in the U.S., is a significant point of discussion. Thomas notes that while cross-border direct shipping demand will continue to grow, the pace will be more gradual than the explosive surge seen during the pandemic. He explains, “Global cross-border trade will still flow because consumers will continue to seek affordable, high-quality products from international markets, and the customer experience, including online platforms and logistics fulfilment, will remain at a high standard.”
Kevin adds, “I foresee a temporary reduction in U.S. imports, especially from China, but over time, things will normalise as people adjust, and this will eventually become the new norm.” He remains optimistic about the long-term stability of e-commerce despite these changes.
Kenny shares his views on the de minimis changes in the U.S.: “As long as the price of goods remains competitive, the changes in de minimis thresholds in the U.S. may not significantly affect overall e-commerce trade. However, if there are more extensive policy shifts, such as the withdrawal of these Customs clearance procedures, we could see a shift in focus to markets like South America and Eastern European countries. We are closely monitoring these developments to adapt our strategies accordingly.”
With technological advancements, sustainability efforts, and a renewed focus on resilience, the future of airfreight in the e-commerce sector looks incredibly promising. For logistics providers, the challenge lies not just in handling the sheer volume of shipments but in managing this growth in a way that is fast, efficient, and environmentally responsible.
The sky is no longer the limit—it’s just the beginning.
