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Aviation express sector taking off

By Chai Hua in Shenzhen | China Daily | Updated: 2018-08-15 09:57
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New force

E-commerce players have become a new force in the air express arena. The logistics arms of China's largest two e-commerce firms, Alibaba Group Holding Ltd and JD are both exploring their own e-commerce air transport routes around the globe.

The booming market demand is driving these companies to bolster air transportation. In 2017, China transported 7.06 million tons of air mail cargo, a 5.6 percent increase year-on-year, according to statistics from the Civil Aviation Administration of China. The figure is forecast to reach 7.56 million tons this year.

The development of high-end technologies and mature consumption markets usually drive growing demand for faster delivery systems, said Yang Daqing, a researcher at the China Society of Logistics.

Another reason for the fast development of air cargo transportation in China is that it is growing from a low starting point. It currently represents just 5 percent of overall cargo transportation, while highway transportation tops 70 percent, Yang said.

The shortage of air cargo delivery facilities has pushed express companies to make breakthroughs through technology, such as drone delivery, he said.

"We are seeing the beginning of air cargo transportation in China, which faces the challenges of insufficient cargo airport hubs, incomplete logistics aviation networks and a lack of professional talents," Yang said.

In comparison, international express giants UPS and Fed-Ex rank among the top 10 airlines in the world with hundreds of freight planes.

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