The report highlights the trends changing the shape of the air freight industry, such as new technology, environmental considerations, the challenges of passenger-to-freighter conversions, developments in electric vertical take-off and landing (eVTOL) aircraft, changes in legal governance, and new legislation.
Key takeaways from the report:
- Drone technology offers unique long-term logistical, cost-saving, and environmental benefits.
- Freight pricing will remain buoyant due to the limited supply and low conversion rate of freighters.
- $8 billion of capital has flowed into the development of eVTOL aircraft over the last five years, with the cargo market expected to reach $58 billion by 2035.
- The passenger-to-freighter conversion market is growing, with roughly 750 conversions projected over the next 20 years.
- Airlines must focus on maintaining high cargo revenue in tandem with passenger flights.
- Investment in newer, more fuel-efficient aircraft is increasing.
- Three kinds of cargo-related liability claims are on the rise.
- Fuel price volatility is expected to have more impact on international aviation than carbon offsetting costs; however, offsetting costs will inevitably need to be pushed onto customers, creating new price pressures.
- Customs authorities are increasingly looking at carriers when it comes to enforcement at the border and liability for noncompliance.