close
close

Air transport emissions rise sharply in retail sector

Posted on by darion

Travel restrictions and supply chain disruptions during Covid-19 have led to retail becoming increasingly reliant on air freight. Source: Shutterstock / supakitswn.

As retail continues to rely heavily on air transport, the sector faces significant environmental challenges. Greenhouse gas (GHG) emissions from air transport operators have increased by 25% compared to 2019 levels, according to a new report from Stand.earth.

This increase is attributed to lasting market shifts driven by supply chain changes during the Covid-19 pandemic.

The report highlights that the United States is responsible for over 40% of emissions from air transport, with the “Big Three”: FedEx, UPS and Amazon Air, accounting for 50% of U.S. domestic freight emissions.

These retail logistics giants have a significant impact on the air freight sector’s carbon footprint.

FedEx and UPS alone accounted for 24.7% of the industry’s carbon emissions in 2023, equivalent to 23.17 million metric tons of CO2. As a result, the Big Three’s contribution now represents a significant impediment to climate progress in the retail supply chain.

Pandemic-era changes are increasing air travel emissions

The report said the increase in air transport emissions is linked to “market disruptions resulting from COVID-19-related travel restrictions and supply chain disruptions,” which have accelerated the shift to air transport.

Get access to the most comprehensive company profiles on the market, powered by GlobalData. Save hours of research. Gain a competitive advantage.

Company Profile – Free Sample

Your download email will arrive shortly

We are confident in the exceptional quality of our company profiles. However, we want you to make the best decision for your business, which is why we offer a free sample that you can download by submitting the form below

By GlobalData







Please visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information about your rights in relation to your personal data and how you can opt out of future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address provided is your corporate email address.

The report indicated that “air transport, instead of returning to pre-pandemic levels, has plateaued and in some cases is still growing.”

FedEx, UPS, and Amazon have embraced this new norm in the shipping industry, but their success has come at significant environmental costs.

Before the pandemic, air freight was mainly used to transport perishable goods and timely deliveries, often sent by passenger planes. However, due to government travel restrictions during the Covid-19 pandemic, international demand for passenger flights has fallen by 75% compared to the previous year.

As a result, trucking companies have invested heavily in expanding cargo-only fleets, which have become the preferred option for shippers in the wake of the pandemic. The report found that this shift was “what many thought was a pandemic anomaly, but in fact is not only ongoing but in some cases growing.”

Amazon Air’s Rapid Growth and Environmental Impact

Amazon Air stands out as the fastest-growing operator in the U.S. Between 2019 and 2023, Amazon Air’s emissions doubled year-over-year, reaching 2.4 million metric tons of CO2.

The rise of same-day and next-day delivery promises from e-commerce platforms has further exacerbated greenhouse gas emissions. Consumer expectations have changed with the dominance of Amazon and the popularity of its one-day shipping for Prime members.

In 2023, an estimated 180 million Prime members in the U.S. received more than 4 billion items via Amazon’s one-day shipping option. The service has put pressure on other e-commerce companies to offer similar delivery speeds, contributing to rising air freight emissions.

Future Steps for Sustainable Retail Shipping

Looking ahead, the report says the Amazon case study shows how a single company can influence consumer habits.

“By adopting greater transparency into the true costs of air freight and providing full accounting of greenhouse gas emissions, the Big Three could establish best practices for long-term, sustainable retail business operations,” the document reads.

This would encourage smaller players in the industry to follow suit, contributing to a more environmentally conscious approach in the retail sector.