Air Freight

Air freight is the fastest mode of international cargo transport, ideal for high-value, time-sensitive, and perishable goods. While it represents less than 1% of global trade by volume, it carries over 35% by value — particularly for electronics, pharmaceuticals, fashion, automotive parts, and urgent shipments.

Air cargo enables just-in-time manufacturing, rapid product launches, and emergency response. When a semiconductor shortage threatens production lines, when fresh seafood must reach markets within 48 hours, or when medical supplies need immediate delivery, air freight is the solution.

Industry Overview

The air cargo industry has experienced significant growth in recent years, with demand increasing by 7-10% annually in 2024. The COVID-19 pandemic accelerated e-commerce and revealed vulnerabilities in ocean supply chains, driving more shippers to consider air freight despite premium pricing.

Key industry facts:

Metric	Value
Share of global trade by value	35%+
Share of global trade by volume	Less than 1%
Year-over-year growth (2024)	7-10%
Freight capacity growth (2024)	5-6%
Average yield increase vs. 2019	46-49%
Major hubs	Hong Kong, Memphis, Shanghai, Anchorage, Dubai

Air freight operates on two distinct capacity models:

1. Belly cargo — Freight carried in the lower hold of passenger aircraft. This capacity fluctuates with passenger demand and represents the majority of global air cargo capacity.

2. Freighter aircraft — Dedicated cargo planes (Boeing 747F, 777F, 767F; Airbus A330F). Freighter capacity has grown 5-6% annually, approaching 2021 peak levels as cargo carriers expand fleets.

Tight capacity and rising demand have driven air cargo yields (revenue per ton-kilometer) up significantly — rates in 2024 are 46-49% above pre-pandemic levels. This makes air freight suitable only for shipments where speed justifies the cost premium over ocean freight (typically 5-10x more expensive).

What This Section Covers

This section explains the core concepts and processes in air cargo operations:

• Air Waybill — The primary transport document in air freight, serving as a contract of carriage and receipt of goods. Learn the difference between master and house air waybills, and understand the transition to electronic air waybills (e-AWB).
• ULD Types — Unit Load Devices are the containers and pallets used to load cargo onto aircraft. Understand the different types (LD-3, LD-9, PMC, PAG), their dimensions, and how ULD selection affects capacity and cost.
• Dimensional Weight — Airlines charge based on the greater of actual weight or dimensional (volumetric) weight. Learn how to calculate DIM weight, understand the pivot point, and optimize packaging to minimize costs.
• Dangerous Goods — Shipping hazardous materials by air requires strict compliance with IATA regulations. Understand the 9 hazard classes, packaging standards, documentation requirements, and shipper responsibilities.
• Airport Operations — How cargo flows through air freight terminals, from acceptance and security screening through ULD build-up, ramp operations, and arrival breakdown to final delivery.

How Air Freight Fits in Your Supply Chain

Air freight integrates with ground transportation to complete door-to-door delivery:

Common air freight scenarios:

1. Direct shipment — Your cargo books space directly with an airline, receives a Master Air Waybill (MAWB), and ships under a single contract. Suitable for large shipments (500+ kg) or when you have a direct airline relationship.

2. Consolidation (groupage) — Your cargo combines with other shipments through a freight forwarder. The forwarder books space with an airline (MAWB) and issues you a House Air Waybill (HAWB). This offers better rates for smaller shipments (under 500 kg).

3. Express integrator — Companies like DHL, FedEx, UPS, and TNT offer door-to-door service with simplified documentation and fast transit times (1-3 days). Premium pricing but minimal hassle.

4. Charter — For oversized, time-critical, or high-volume cargo, you can charter an entire freighter aircraft. Used for project cargo, urgent automotive parts, disaster relief, and large e-commerce peaks.

Key Concepts

Air freight operates through a network of airlines (carriers), airports, ground handling agents (GHAs), and freight forwarders. Cargo is transported in the belly hold of passenger aircraft or on dedicated freighter aircraft, using standardized ULD equipment.

Core stakeholders:

• Shippers — Businesses sending goods
• Consignees — Businesses receiving goods
• Airlines/carriers — Companies operating cargo flights (Cathay Pacific Cargo, FedEx, UPS, Emirates SkyCargo, Korean Air Cargo, Lufthansa Cargo, etc.)
• Freight forwarders — Intermediaries who consolidate cargo, book space, and issue HAWBs
• Ground handling agents (GHAs) — Companies providing cargo acceptance, ULD build-up, security screening, and aircraft loading/unloading services at airports
• Customs brokers — Licensed professionals handling customs clearance
• Trucking companies — Providers of ground transportation to/from airports

Essential knowledge areas:

1. Documentation — Master the Air Waybill (MAWB/HAWB distinction), understand the 11-digit AWB numbering system, and know when dangerous goods declarations (DGD) or other specialized documents are required.

2. Weight calculations — Air freight pricing uses chargeable weight, which is the greater of actual weight or dimensional weight. Learn to calculate DIM weight (Length × Width × Height ÷ 6000 for most airlines) and optimize packaging.

3. ULD selection — Understand which Unit Load Devices fit your cargo and the aircraft type. Using the right ULD maximizes space utilization and can reduce costs.

4. Security requirements — All air cargo undergoes security screening. Regulated agents, known shippers, and Secure Freight programs streamline this process. Non-compliance causes delays.

5. Dangerous goods compliance — Lithium batteries, chemicals, and other hazardous materials require IATA certification, specialized packaging, and detailed declarations. Violations result in fines, shipment rejection, or legal action.

6. Transit time vs. cost — Air freight is 5-10x more expensive than ocean freight. The key decision is whether faster delivery (2-7 days vs. 15-45 days) justifies the cost premium for your business case.

Resources

Resource	Description	Link
IATA Air Cargo Portal	Industry standards, publications, and market analysis	iata.org/cargo
IATA Cargo Market Analysis	Monthly reports on global air cargo demand and capacity	iata.org/economics
ICAO Air Freight Facts	International Civil Aviation Organization cargo statistics	icao.int/sustainability
FedEx Air Cargo Guide	Practical guide to air freight terminology and processes	fedex.com/cargo
Cargo Facts	Industry news, fleet data, and airline cargo profiles	cargofacts.com

Related Topics

To understand air freight fully, you should also explore:

• Ocean Freight — The alternative for non-urgent, high-volume shipments; understand when to choose air vs. ocean
• Freight Forwarding — How forwarders consolidate air cargo and provide HAWB services
• Customs & Compliance — Import/export regulations and customs clearance procedures for air shipments
• Parcel Shipment — Express integrators (DHL, FedEx, UPS) bridge the gap between air freight and parcel services