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            september 19, 2019

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TransLogistica 2019 KZ

Busworld 2019

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Air cargo industry is struggling to meet exploding demand for e-commerce deliveries


The UPS Pulse of the Online Shopper Study found that online shoppers in Canada (83 per cent), Brazil (81 per cent) and Mexico (78 per cent) make purchases from international retailers.
In the US, 47 per cent of shoppers made international purchases. Consumers shopped internationally mainly for better prices and access to specific or unique products, London's Air Cargo News reported.
The study, which covered the US, Asia, Europe, Canada, Mexico and Brazil, also revealed that a higher percentage of smartphone users made purchases via their devices.
In Asia, where mobile purchases are most common, the percentage of smartphone users who made a mobile purchase rose to 77 per cent from 55 per cent in 2015. In Europe, where smartphone purchases are least common, the percentage rose to 43 per cent from 28 per cent during the same period.
However, shoppers expect quick fulfilment of online orders and speedy delivery across all regions. Yet, the air cargo industry is struggling to keep up with the rapid growth of e-commerce.
The Independent Pilots Association (IPA), for example, said UPS had turned to wet leased aircraft because UPS management had been "caught flat-footed by surging e-commerce volume."
The use of outside suppliers has angered the IPA as it claims the express giant has breached its labour agreement. In response, the union has referred the dispute to an industry arbitrator and is also conducting a survey of UPS customers to find out whether they are being affected by any capacity shortages.
IPA president Robert Travis said: "While UPS acknowledges the immediate need for more airplanes, they have so far been unable to make it happen leaving the airline capacity hobbled."
Mr Travis added that previously announced aircraft orders, while a step in the right direction, do not address pressing short or medium-term UPS needs.

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