Fast and Reliable: Air Freight Service in Estonia
Introduction
Airfreight transport plays a crucial role in today’s global economy, enabling quick and efficient movement of goods between countries and continents. In recent years, Estonia’s freight sector has significantly developed, offering a wide range of services that cater to the needs of various industries. This overview aims to provide insights into the current state of freight transport globally, in Scandinavia, the Baltic States, and specifically in Estonia, by analysing different services and users.
Infrastructure and Major Airports
Tallinn Airport is Estonia’s main airport and central hub for air freight. The modern infrastructure and numerous upgrades at the airport have increased its cargo capacity and service quality. Key aspects of Tallinn Airport include:
Cargo Terminals: Tallinn Airport has several cargo terminals equipped with modern handling facilities. These terminals can manage various types of goods, including those requiring special conditions like pharmaceutical products and perishable goods.
Expansion Plans: Expansion projects at Tallinn Airport involve increasing the capacity of cargo terminals and storage facilities to meet growing demand.
In addition to Tallinn, there are airports in Tartu, Pärnu, and Kuressaare, but cargo transport occurs solely through Tallinn Airport only.
Service Providers and Volumes
Both international and local logistics service providers operate in Estonia, playing a significant role in air freight. Major courier companies like DHL, UPS, and FedEx are present in Estonia, offering a broad range of services, including international airfreight service, customs formalities, express and door-to-door service using their aircraft fleets. Due to Estonia’s small size, direct flights are provided by a few airlines: Lufthansa, Finnair, LOT, SAS, Turkish Airlines, and AirBaltic. Besides large international forwarders, Estonia also has local logistics companies that offer specialized services and have a good understanding of local market conditions.
In 2023, air freight transported through Tallinn Airport amounted to 8,752 tons, which is 21% less than in 2022. Of this volume, 819 tons were transported by passenger aircraft in 2023 which is 18% increase compared to the previous year. The majority of airfreight volumes at Tallinn Airport are provided by courier companies. Significant volumes also move by Road Feeder Services (RFS), though exact figures are not available due to incomplete statistics.
Rapid growth of e-commerce has increased the demand for small and urgent shipments, promoting the growth of air freight volumes. Estonia’s strategic location and good connections to key European and Asian markets make it an important hub in international trade.
Main Cargo Commodities
Air freight in Estonia includes a wide range of product categories:
Electronics and Technology: A significant portion of air cargo consists of high-tech equipment and electronic products that require fast and secure transport.
Pharmaceuticals: The transportation of medicines and medical devices requires special conditions that air freight can provide.
Perishable Goods: Food items, flowers, and other perishable products need fast transport and temperature control.
Fashion and Textiles: Air freight is crucial for the fashion industry, where time is of the essence.
Future and Investments
Tallinn Airport and Estonian Government have made substantial investments in developing air freight infrastructure. The future outlook is positive, with plans to continue improving infrastructure and adopting new technologies.
Increasing attention is being paid to environmentally friendly solutions, including energy-efficient terminals and the use of green energy. New technologies, such as automation and artificial intelligence, play a significant role in optimizing logistics processes and increasing efficiency.
Challenges and Risks
The Estonian air freight sector faces several challenges:
Competition: Estonia must compete with other Baltic and Nordic airports HEL, RIX and ARN that are also investing in their freight infrastructures.
Regulations: International and local regulatory requirements can be complex and require continuous adaptation.
Seasonality: Seasonal fluctuations in cargo volumes can affect airport operations and planning.
Types of Freight Transport – General Cargo
Air freight in Estonia is strategically important and rapidly developing, supporting the country’s economic growth and international trade flows. The modern infrastructure of Tallinn Airport and strong connections to international markets make it a crucial hub. Despite some challenges, the sector has a positive outlook thanks to ongoing investments and technological advancements.
The key advantage of air freight compared to road and sea transport is speed. Although the number of airlines flying to Tallinn are small compared to Scandinavian and other global airports, the road feeder service (RFS) is well developed, transporting goods to nearby major airports, from where they continue to their destinations by air.
Types of Freight Transport – Express Cargo
The global express cargo market is continuously growing, driven by the explosive development of e-commerce, technological advancements, and increasing consumer demand for fast deliveries. Major international players are constantly investing in new technologies and logistics systems to ensure fast and reliable cargo transport worldwide.
Many regular airlines offer express cargo within their passenger flight routes, enabling quick and cost-effective transport of smaller and less time-critical shipments. Regular airlines are particularly popular among e-commerce and small businesses where fast deliveries are essential but large charter flights may not be economically viable.
For time-critical shipments, charter flights and on-board courier (OBC) services are important, allowing the rapid transport of time-sensitive items such as live organs, medical devices, urgent aircraft parts (Aircraft On Ground – AOG), urgent spare parts for production lines and etc.
Worldwide, express cargo services have become an integral part of daily life, supporting the rapid development of e-commerce, technology, and healthcare sectors. The importance of fast and efficient cargo transport has become especially evident during the COVID-19 pandemic, with a surge in demand for fast deliveries from consumers and businesses. Additionally, the complexity of global supply chains and the need for real-time tracking have increased the demand for advanced logistics systems and services.
In the Baltic States, including Estonia, Latvia, and Lithuania, the express cargo sector has grown rapidly in recent years. Contributing factors include the region’s geographical location, which serves as a bridge between Western and Eastern Europe, and investments in logistics infrastructure and services. Estonia is at the forefront of this development, offering a wide range of express services in both air and road transport. Tallinn Airport has become a crucial hub, facilitating the quick and efficient movement of goods both within Europe and beyond.
Estonia’s express cargo sector has significant growth potential. Technological advancements and digitalization create new opportunities for improving logistics services and increasing efficiency. Additionally, the growth of green logistics solutions and environmentally friendly transport methods are expected to meet the increasing demands of both companies and consumers.
Types of Freight Transport: Charter Flights
Charter flights are essential part of the freight service, enabling transport of large quantities of goods or specific shipments directly to their destination without stopovers. These flights are particularly useful for transporting special cargo, such as dangerous goods (DGR), live animals, humanitarian aid, and military shipments. In Estonia, charter flights are a growing market, especially considering the country’s strategic location and flexible logistics solutions.
Charter flights in Estonia are often used for the following types of cargo:
Dangerous Goods (DGR): Transporting these goods requires special solutions and safety procedures. Dangerous goods transport requires compliance with strict international regulations and specific transport conditions.
Live Animals: Transporting live animals requires special conditions and careful monitoring. The transport of live animals necessitates special crates and conditions to ensure their welfare throughout the journey.
Humanitarian Aid and Military Shipments: Fast deliveries are necessary for crisis situations and supporting military operations. Humanitarian aid shipments often need to reach their destination quickly to assist in disaster areas or other crises.
Medical and Electronic Equipment: These require fast and secure transport, often through OBC services. Medical and electronic equipment is often time-sensitive, requiring quick and precise delivery.
Main Users of Air Freight Transport
Freight services in Estonia are used by various sectors and companies, including:
E-commerce: Fast deliveries are crucial for e-commerce companies to meet customer expectations and maintain competitiveness. The growth of e-commerce has led to a high demand for fast and reliable delivery methods to provide customers with the best possible service.
Medical and Healthcare: The rapid transport of medical devices, medicines, and live organs is vital. Hospitals and medical centres often rely on fast deliveries to ensure necessary treatments and care for patients.
Technology and Electronics: Fast deliveries are needed for manufacturing processes and supply chains to function smoothly. The electronics industry, heavily dependent on the quick and accurate delivery of components, is one of the largest users of express cargo services.
Fashion and Textile Industry: Fast seasonal deliveries and sample shipments are essential. The fashion industry requires quick delivery solutions to ensure that the latest trends reach consumers as quickly as possible.
Industrial Sector: The transport of spare parts and time-critical components to avoid production line stoppages. Industrial companies that depend on precise schedules and smooth production processes often use express services to avoid downtime and ensure continuous production.
Conclusion
The freight sector in Estonia is constantly evolving, offering a wide range of services that meet the needs of various industries and sectors. The global trend towards fast and reliable transport solutions is reflected in Estonia, where investments in logistics infrastructure and service development are being made. The future promises continued growth and innovations that will enable even more efficient and environmentally friendly freight transport.
Estonia’s position as a key logistics hub in the Baltic States and Northern Europe provides a favourable environment for the further development of freight transport, offering reliable and fast solutions for businesses and consumers. The ongoing development of the sector helps strengthen Estonia’s economy and increase its competitiveness on an international level. Freight services in Estonia are well-positioned to meet future challenges and opportunities, ensuring fast and efficient cargo transport between local and international markets.
