Cargo at PIT Benefits from Online Shopping Surge

The modern new terminal rising at Pittsburgh International Airport may get the lion’s share of attention, but there’s another major construction project that will generate jobs and economic growth throughout Western Pennsylvania.

PIT’s new 77,000-square foot cargo facility, dubbed Cargo 4, will create much-needed space for expansion when it opens for business late this year.

The airport’s overall cargo business has increased in recent years, driven in large part by the remarkable rise in e-commerce, or online shopping. According to Morgan Stanley, the global e-commerce market is expected to grow from $3.3 trillion today to $5.4 trillion by 2026, when it will represent 27 percent of total retail sales.

With millions of shipments sent each day, and consumers’ expectation of fast delivery times, e-commerce is a critical market segment for the air cargo industry.

“The explosive growth of Shein and Temu in the U.S. market has been a key driver of trans-Pacific air cargo demand growth in the last couple of years,” said David Hoppin of Seabury Airline Strategy Group.

Game changer

Back in the 1960s, a few large companies set up “electronic data interchange” links to allow vendors to submit bids and customers to place orders, as a precursor to the Internet, which was commercialized in the late 1980s and early 1990s. Full-scale internet shopping followed. E-commerce had arrived.

The rise of powerhouses like Amazon, eBay and Shopify have solidified e-commerce as a part of everyday life. Traditional brick-and-mortar retailers are also capitalizing on the popularity of e-commerce, with Walmart reporting that online sales now account for about 15 percent of its total revenue.

During the COVID-19 pandemic, as consumers spent significantly more time at home, e-commerce saw a period of massively accelerated growth.

The International Air Transport Association (IATA) reported that 52 percent of consumers increased their online shopping during the pandemic, and experts say that growth will continue.

“We believe that the COVID-driven bump will not flatten future e-commerce growth,” said Bri