According to market insights from Upply, the global air cargo industry experienced unprecedented growth in 2024, setting new records in traffic and revenue.
The International Air Transport Association (IATA) reports that global air freight demand surged 11.3% compared to 2023, reaching approximately 275 billion tonne-kilometres, surpassing the previous record set in 2021.
This growth is largely driven by cross-border trade, which is reshaping consumer purchasing behaviour and supply chain dynamics.
However, this expansion brings increased regulatory complexity, requiring airlines and logistics providers to adapt swiftly to evolving global compliance requirements.
Rising Air Cargo Demand and Its Challenges
As consumers demand faster access to international products, E-commerce will continue to expand, not only in established markets but also in emerging ones.
Cross-border deliveries will remain a core aspect of e-commerce, driving further demand for air freight capacity.
Large-volume movers from key manufacturing regions will play a critical role in shaping air cargo demand.
Major trade corridors such as Asia-North America and Europe-Asia are experiencing substantial recent growth.
This surge in e-commerce shipments has outpaced available cargo capacity, leading to increased freight rates.
During peak seasons, rates from Asia to the U.S. rose by 49%, while European rates climbed by 25%.
Compliance Challenges in High-Volume E-Commerce Shipments
The rapid rise in volume presents significant compliance hurdles, particularly around global regulatory adherence and data accuracy.
International e-commerce necessitates strict compliance with diverse customs and security regulations.
Governments worldwide have introduced stringent requirements to enhance air cargo security and traceability.
For example, the EU’s Import Control System 2 (ICS2) mandates that economic operators provide accurate and complete electronic data for pre-loading and pre-arrival customs risk assessments, including detailed product descriptions and Harmonized System (HS) codes.
Incomplete or incorrect data can result in shipment delays, increased scrutiny, and financial penalties, significantly disrupting operations.
High e-commerce parcel volumes further complicate compliance, as vague or generic product descriptions make verification difficult.
Additionally, governments are reassessing de minimis thresholds—the value below which goods can enter a country without duties or taxes.
The U.S. and EU are considering reductions or the elimination of exemptions, which could significantly impact cost structures, operational processes and compliance requirements.
Such regulatory changes will increase administrative burdens on retailers, airlines, and logistics providers, necessitating updates to customs declaration processes and risk management strategies.
Strategic Compliance Solutions
To navigate these challenges, the air cargo and e-commerce sectors are adopting strategic compliance solutions that enhance efficiency and mitigate risk.
● Advanced Data Solutions: Accurate data is the foundation of compliance. AI-powered platforms classify products with the correct HS codes, calculate applicable duties and taxes, and screen for prohibited or restricted items. These technologies reduce manual intervention, improving both compliance and operational efficiency.
● Comprehensive Screening Protocols: Automated screening tools help prevent the shipment of restricted goods by assessing products against global regulatory databases. These systems flag high-risk shipments, identify items requiring special handling, and prevent regulatory violations before they occur.
● Enhanced Supply Chain Collaboration: Effective compliance depends on seamless coordination across the entire supply chain—manufacturers, e-commerce platforms, airlines, logistics providers, and customs authorities. Standardised data-sharing protocols ensure accurate and timely data transmission, reduce the risk of non-compliance, and enable faster customs clearance.
Enabling Compliance Through Data
As trade volumes reach unprecedented levels, manual compliance systems are inadequate for today's environment.
The future of cross-border trade depends on balancing explosive growth with stringent compliance requirements.
The air cargo industry is at a critical inflection point where embracing advanced solutions is essential.
At Hurricane Commerce, our data-driven compliance solutions help airlines and logistics providers tackle these challenges head-on.
By leveraging advanced AI and machine learning, our platforms transform complex regulatory requirements into streamlined, automated processes that:
● Ensure compliance across global frameworks
● Enhance security screening through real-time data validation
● Prevent shipment delays through proactive compliance management
With the right data-driven approach, the air cargo industry can turn one of its greatest challenges into an unprecedented opportunity for growth, efficiency, and customer satisfaction.
This article was originally published in the March/April 2025 issue of Air Logistics International, click here to read the digital edition and click here to subscribe.