🚀 Delta’s Ecommerce Bet
Delta Cargo is banking on ecommerce to power air cargo growth in 2025. According to Peter Penseel, SVP and President of Delta Cargo, the sector has shown resilience despite geopolitical and economic challenges. Penseel highlighted a strong Q3 2024 performance, with $196M in cargo revenue, a 27% rise from the previous year. Delta’s belly cargo capacity, integrated with its global flight network, positions it uniquely in the ecommerce-driven air freight market.
📦 DeliverDirect’s Impact
Early last year, Delta Cargo launched DeliverDirect, a door-to-door ecommerce service powered by SmartKargo. This move marked its entry into the U.S. domestic ecommerce market. Penseel called it a “booming business,” with strong growth over the past year. He noted that this service addresses a market need and complements Delta’s traditional airport-to-airport model. This innovation reflects Delta’s investment in leveraging technology to meet rising ecommerce demand.
🌐 Ecommerce and Air Cargo
While some view ecommerce as low-yield, Penseel disagrees. He argues that the consistent volume and strong demand make ecommerce a crucial segment for air cargo. Delta’s focus on optimizing belly cargo capacity aligns with this demand, offering predictable, scheduled services to customers. Ecommerce has become a significant revenue stream, accounting for a growing share of Delta Cargo’s operations, particularly in international markets.
🌟 Outlook for 2025
Despite global uncertainties, Penseel remains optimistic about 2025. He cited industry resilience in facing recent challenges, including the pandemic, geopolitical tensions, and ocean freight disruptions. He also noted healthy rate levels, which enable investments in new technologies. Penseel emphasized that ecommerce will continue to drive air cargo, keeping demand robust and Delta’s belly cargo network at the forefront of global trade. “The challenge is to manage change properly,” he added, hinting at Delta’s confidence in navigating an evolving landscape.
Will ecommerce continue reshaping air cargo in 2025?
