In today's global economy, the role of air cargo logistics has become increasingly vital. Some describe it as a war among logistics providers, but which companies will ultimately emerge victorious? With the official operation of Ezhou Huahu Airport, YTO Express's "Oriental Sky Port" project in collaboration with Jiaxing Municipal Government has commenced construction. Meanwhile, Cainiao's partnership with Shenzhen Bao'an International Airport aims to establish China's first dedicated air cargo hub, while JD Logistics has chosen Nantong Xingdong International Airport as its new operational base. These strategic moves signal intensifying competition in the air logistics market.
The Expanding Air Cargo Market
Statistical data reveals that China's air import and export volume reached approximately 4.81 million tons in 2022, primarily comprising high-tech products, mechanical components, and electromechanical equipment. This product mix closely aligns with China's manufacturing upgrade, as advanced industrial goods increasingly demand efficient, high-quality logistics services.
The explosive growth of cross-border e-commerce has injected new momentum into air logistics. Over the past five years, China's cross-border e-commerce import and export volume has grown nearly tenfold, reaching 2.11 trillion yuan in 2022, with projections exceeding 3.6 trillion yuan by 2025. Notably, approximately 80% of global cross-border e-commerce shipments currently rely on air transport, underscoring air logistics' critical position in this sector.
Specialized Cargo Demands
Perishable goods, pharmaceuticals, and other time-sensitive products further highlight air logistics' unparalleled advantages in speed and reliability. These specialized segments provide diverse demand sources for the air cargo industry.
Capacity Challenges
By the end of 2021, China's civil aviation fleet totaled 4,054 aircraft, with only 198 dedicated freighters—a stark contrast to FedEx's fleet of 478 cargo aircraft. This disparity reveals China's air logistics industry's scale limitations and the complexity of market competition. While various enterprises are expanding into air logistics, their distinct objectives and characteristics suggest more nuanced relationships than simple competition.
High Barriers to Entry
The air logistics sector presents formidable entry barriers. Obtaining necessary certifications, capital investments, and resource allocations require massive funding and extended development periods—often involving billions in investment and years of preparation. Moreover, since air logistics primarily serves premium markets, merely acquiring aircraft and building airports proves insufficient without advanced supply chain capabilities.
Industry Outlook: Boeing projects China's air cargo market will maintain 5.3% annual growth over the next two decades, while Airbus estimates China will require 610 additional freighters during this period. As China's air logistics industry rides this new wave of development, the question remains: which company will ultimately lead this high-stakes competition?
