Rising emissions in the air freight industry have drawn criticism from environmental groups, highlighting a significant increase due to global supply chain difficulties and surging online commerce. Pollution from air freight has surged by 25% since 2019, according to Stand Earth, a US-Canadian environmental pressure group.
Impact of the Pandemic
The COVID-19 pandemic exacerbated the issue by disrupting traditional supply chains and increasing the reliance on air freight for a wider range of goods. Previously, air freight mainly handled perishable goods, time-sensitive deliveries, and luxury items. The pandemic forced a shift, leading to industries using air freight for a broader variety of products. This shift, initially perceived as a temporary measure, has continued and even grown in some areas.
Major Contributors
Stand Earth’s report singled out major players like FedEx, UPS, and Amazon. It holds them accountable for 27% of global air freight greenhouse gas emissions https://en.wikipedia.org/wiki/Emission_spectrum#:~:text=In%20physics%2C%20emission%20is%20the,the%20energy%20of%20the%20transition. Critics particularly blame Amazon’s business model, which promotes rapid delivery through its Prime service, for driving emissions up. Online commerce has seen explosive growth, increasing from $2.1 trillion in 2019 to $3.6 trillion in 2023.
Broader Industry Trends
While specialized air freight companies play a significant role, commercial airlines also contribute substantially. The International Air Transport Association (IATA) projects that 62 million tones will be shipped by air freight in 2024, a 7.6% increase from 2019 levels. Though air freight constitutes only 1% of global trade volume. It accounts for 35% of trade by value due to the high-value nature of the goods transported.
Economic Pressures and Market Shifts
The air freight market has faced volatility, with rising demand for e-commerce driving the need for faster and more reliable delivery services. This demand has led to the use of “freighters” – passenger aircraft temporarily converted for cargo use – to meet the surge in freight needs. However, this solution is seen as a temporary fix until passenger traffic fully recovers and more dedicated freighter aircraft can be brought online.
Future Outlook
Despite the challenges, there are signs of stabilization in the market. Experts predict a modest growth in air cargo volumes, with estimates ranging from 1% to 4.5% annually. However, economic uncertainties and competition from other modes of transport, such as maritime shipping, will continue to influence the market dynamics.
The rise in emissions from the air freight industry presents a significant environmental challenge that needs addressing. As the industry continues to grow and adapt, balancing efficiency and environmental sustainability will be crucial for mitigating its impact on global greenhouse gas emissions.
