As global e-commerce continues to expand, cross-border freight forwarding is entering an exciting new phase. While many believed the post-pandemic era would mark the end of rapid growth in cross-border logistics, the opposite has proven true. The pandemic was only the beginning of a long-term transformation. Over the next 5 to 10 years, the globalisation of China's advanced e-commerce logistics model will provide unparalleled opportunities. In this article, we explore key trends shaping the industry in 2025, as well as the challenges and new opportunities they present.
Trends Driving Cross-Border Logistics in 2024
1. Dedicated Cargo Flights Becoming the Norm The rise of e-commerce has created unprecedented demand for air freight capacity, particularly for long-haul routes. Chinese cross-border e-commerce exports alone require a minimum capacity of 10,000 tonnes per day, representing approximately one-third of the global wide-body freighter capacity.
Fixed-frequency, dedicated cargo flights have become the backbone of international logistics. For example, there are now seven daily e-commerce cargo flights from China to Liège, Belgium, alone. However, the growth of cross-border parcel volumes is outpacing the expansion of air freight capacity, leading to a reshaping of the global air cargo market. This mismatch will drive continued innovation in freight forwarding and create opportunities for companies to expand their networks.
2. Multi-Port Injection Gaining Momentum As e-commerce orders become denser in target markets, multi-port injection is becoming a viable strategy. By injecting parcels directly into multiple ports, logistics providers can reduce the need for transit flights and secondary distribution, thereby cutting costs and improving efficiency.
In the past, parcel clearance in the U.S. was concentrated on the East and West coasts. Now, additional ports are being used to inject parcels directly into the heartland. Similarly, in Europe, the increased density of orders is enabling parcels to be cleared at more remote airports. This shift underscores the importance of building strong customs clearance and distribution capabilities at major airports. Countries with well-developed infrastructure and customs clearance hubs will have a distinct advantage in capturing the growing e-commerce traffic.
Challenges in 2025
While these trends offer exciting opportunities, they also present challenges for cross-border logistics providers:
- Capacity Constraints: The demand for wide-body freighter capacity is growing faster than supply, forcing companies to optimise their operations and seek alternative solutions.
- Regulatory Complexities: With multi-port injection becoming standard, providers must navigate increasingly complex customs regulations and ensure compliance across diverse regions.
- Rising Costs: The focus on infrastructure development, customs clearance facilities, and last-mile distribution hubs will require significant investment.
Unique Propositions for the Irish Market in Cross-Border Freight Forwarding
The Irish e-commerce market, while relatively small compared to other European nations, presents unique opportunities for logistics providers. As the sector grows, positioning your services with tailored value propositions can give you a competitive edge. Here are some suggestions:
- Streamlined Customs Clearance Expertise With Ireland being a gateway to both the UK and the EU post-Brexit, offering seamless customs clearance services can set your company apart. Leverage expertise in handling dual compliance requirements for both regions, ensuring faster transit times and reduced regulatory headaches for e-commerce sellers.
- Regional Distribution Hub for Western Europe Ireland’s strategic location makes it an ideal hub for distributing goods to Western Europe. Develop local fulfilment centres and partnerships with last-mile delivery providers to enable next-day or two-day shipping across Ireland, the UK, and beyond. This will be particularly appealing to sellers seeking to reduce delivery times.
- Sustainability-Focused Solutions Irish consumers and businesses place significant value on eco-friendly practices. Offer carbon-neutral shipping options, use electric vehicles for last-mile delivery, and adopt sustainable packaging solutions. This aligns with Ireland’s commitment to green initiatives and provides sellers with an eco-conscious logistics partner.
- Tailored Support for SMEs Ireland’s economy relies heavily on small and medium-sized enterprises (SMEs). Provide scalable solutions specifically designed for SMEs entering the cross-border e-commerce market, such as flexible shipping options, low-cost fulfilment, and end-to-end support. Highlight your ability to help them compete with larger players.
- Technology-Driven Transparency Invest in advanced tracking and reporting tools to offer Irish businesses real-time visibility over their supply chains. Providing transparent updates on parcel location, customs status, and delivery timelines will appeal to sellers and build trust with end consumers.
- Fast Response to Seasonal Demand Ireland’s market experiences significant peaks during seasonal shopping events like Christmas and Black Friday. Develop agile freight forwarding services that can quickly scale up during peak periods. This could include flexible cargo capacity, express customs clearance, and partnerships with local couriers.
- E-Commerce Marketplace Integration With Amazon recently launching in Ireland, focus on seamless integrations with leading e-commerce platforms such as Amazon, Shopify, and eBay. Offer tailored solutions like direct shipping to Amazon FBA warehouses and optimised parcel consolidation for marketplace sellers.
- Bespoke Services for the U.S.-Ireland Trade Lane Given Ireland’s strong ties with the U.S., target cross-border e-commerce trade between the two countries. Provide dedicated cargo flights, multi-port injection into U.S. markets, and efficient returns handling for Irish sellers exporting to American consumers.
As 2024 unfolds, cross-border freight forwarding will continue to evolve, reshaping the global logistics industry. For companies like E2G Logistics, these trends signal the need for strategic adaptation. By embracing these trends and addressing the challenges head-on, companies can unlock new growth opportunities and remain at the forefront of international trade. The future of e-commerce logistics is not just about moving parcels—it’s about building the networks and infrastructure that will power global trade for decades to come.