E-Commerce and Sustainability in Air Cargo

Packaging Challenges

The packaging used in e-commerce shipments is one of the most significant sustainability issues for the air cargo industry. The global e-commerce packaging market was valued at $49.2 billion in 2020, and it is expected to reach $98.2 billion by 2025, driven by the increasing volume of online sales. This surge in demand has led to a corresponding increase in the use of packaging materials, particularly single-use plastics.

Plastic packaging is popular because it is lightweight, which reduces shipping costs However, the environmental impact of plastic is severe. The Ellen MacArthur Foundation reports that by 2050, the ocean could contain more plastics than fish by weight if current trends continue. This highlights the urgent need for the air cargo industry to find sustainable alternatives.

Some companies are beginning to explore alternatives such as biodegradable plastics and recycled materials. For instance, DHL has introduced a line of eco-friendly packaging made from 100% recycled materials. However, the adoption of these materials is still limited due to higher costs and the need to meet stringent safety standards during air transport. Research by McKinsey indicates that switching to sustainable packaging could increase costs by 5% to 15%, a significant factor for companies operating on thin margins.

Environmental Challenges

Beyond packaging, the broader environmental impact of e-commerce shipments in air cargo is a critical concern. Air transport is responsible for approximately 2.5% of global CO2 emissions. While this might seem small, the rapid growth of e-commerce is exacerbating the issue.

The air cargo industry is under pressure to reduce its carbon footprint while maintaining the speed and reliability that e-commerce demands. IATA’s goal is to achieve net-zero carbon emissions by 2050, a target that requires significant innovation in fuel efficiency, electrification, and alternative fuels. For example, sustainable aviation fuels (SAFs) can reduce CO2 emissions by up to 80% compared to traditional jet fuel. However, SAFs currently account for less than 0.1% of global aviation fuel due to high costs and limited availability.

In the short term, optimizing flight routes and load management can help improve fuel efficiency. According to a report by the Air Transport Action Group (ATAG), improving air traffic management could reduce fuel consumption by up to 10%. Meanwhile, carbon offset programs, such as those supporting reforestation and renewable energy projects, are increasingly being adopted as interim solutions.

The Use of Plastics and Recycling

The pervasive use of plastics in e-commerce packaging is a double-edged sword. Plastic packaging, while lightweight and durable, contributes to significant environmental issues. A 2020 study by the World Wildlife Fund (WWF) found that only 9% of all plastic waste ever produced has been recycled, with the majority ending up in landfills or the environment.

The air cargo industry faces the challenge of managing this plastic waste, particularly in markets where recycling infrastructure is inadequate. The industry must promote and invest in recycling programs and encourage the use of recyclable materials. Amazon, for example, has implemented a packaging return program where customers can return their packaging for recycling, but such initiatives remain the exception rather than the norm.

• Packaging factsheet (pdf)

E-Commerce Returns: A Growing Concern

Another significant challenge is the management of e-commerce returns. The average return rate for online purchases was 20.8% in 2022, nearly double the rate for in-store purchases. This high return rate not only increases the volume of shipments but also exacerbates the environmental impact of e-commerce.

The environmental cost of returns is substantial. Returns in the U.S. alone generate 15 million metric tons of CO2 annually and create 2.26 million kilograms of waste. The air cargo industry must not only handle the logistics of these returns but also manage the additional packaging waste and carbon emissions they generate.

To mitigate this, some companies are experimenting with strategies such as return consolidation, where multiple returns are shipped back together, reducing the overall number of shipments. Additionally, improving product descriptions, customer service, and the accuracy of sizing guides can help reduce the need for returns, ultimately minimizing their environmental impact.

Next steps

Drawing upon research conducted by the International Air Transport Association (IATA) and the collective expertise of the IATA Cargo Handling Council (ICHC), we will soon release guidance on Single-Use Plastic Product (SUPP) reduction in air cargo which offers strategic suggestions tailored for airlines, cargo handlers, and other key stakeholders. The document offers a comprehensive guide, advocating for a shift towards sustainable practices by focusing on reducing SUPP, particularly plastic sheeting and stretch wrap, within air cargo operations.