BRI, e-commerce boom lift world air cargo market

The boom of cross-border e-commerce has unprecedentedly lifted the global air cargo market, with China leading the way, boosted by the "Air Silk Road" that connects economies participating in the Belt and Road Initiative.

Ethiopian Airlines, the largest African carrier and the largest air carrier between China and Africa, operates cargo routes connecting Ethiopia's capital, Addis Ababa, and nine Chinese cities, including Beijing, Shanghai, Zhengzhou in Henan province and Guangzhou in Guangdong province.

The airline said adequate flight capacity has ensured that economic exchanges between China and Africa remain active, and has promoted cooperation and development between the two sides in a wide range of sectors.

Aman Wole Gurmu, Ethiopian Airlines' country director for China, said, "Particularly in Guangzhou, in the first seven months of this year, the cross-border e-commerce transportation volume between China and Africa exceeded 13,000 metric tons, achieving a leapfrog growth over the same period of 2019, or before COVID-19."

"This year, the annual air cargo transportation volumes between China and Africa are expected to jump by 46 percent over the pre-pandemic levels," Gurmu said.

Since 2020, Ethiopian Airlines' cargo business has continued to thrive, with a cumulative export volume to China exceeding 532,000 tons and import volume approaching 200,000 tons, the carrier said.

The air cargo exports from China to Africa have primarily been cross-border e-commerce products such as mechanical and electrical products, textiles, building materials and household appliances.

The goods transported from Africa to China have been mineral products, agricultural products such as coffee beans, cocoa beans, wood and cotton, as well as handicrafts, the carrier said.

Peter Gao, Boeing's vice-president for China of commercial sales and marketing, said, "The air cargo transportation market globally has been undergoing constant changes, and cross-border e-commerce business has driven the rapid growth of demand for air cargo transportation."

Meanwhile, Etihad Cargo, the cargo and logistics arm of Abu Dhabi-based Etihad Airways, further strengthened its cooperation with China with a newly established joint venture with SF Airlines, a subsidiary of Shenzhen-based logistics company SF Holding. This is an unprecedented milestone in the 40-year history of diplomatic relations between the United Arab Emirates and China.

The joint venture, which builds on the already successful partnership between Etihad Cargo and SF Airlines, has significantly enhanced connectivity and capacity between China, the UAE and global markets. The collaboration has seen both airlines sharing capacity to improve global trade routes, a relationship that has been mutually beneficial, Etihad Cargo said.

Mohammed Ali Al Shorafa, chairman of Etihad Airways, said: "This historic joint venture is a true testament to the robust and growing relationship between the UAE and China. It will enable both airlines to provide even more connectivity, flexibility and speed to customers."

Wang Wei, chairman of SF Holding, said: "This joint venture is a pioneering development in air cargo logistics between China and the UAE. By joining forces with Etihad Cargo, we are setting new standards for the industry, particularly in response to the rising demand for e-commerce, airmail and parcel delivery."

In addition, the International Air Transport Association recently released data for the global air cargo market's performance in October, showing continuously growing demand.

Total demand, measured in cargo ton-kilometers, rose 9.8 percent compared with the October 2023 levels, showing growth for the 15th consecutive month. Capacity, measured in available cargo ton-kilometers, increased 5.9 percent year-on-year, largely driven by an 8.5 percent increase in international belly capacity, the IATA said.