Air Cargo

Air cargo refers to any freight transported by aircraft. It encompasses everything from small express parcels and e-commerce packages to heavy industrial equipment, live animals, pharmaceuticals, and perishable goods. Air cargo is the fastest mode of international freight transport — and typically the most expensive.

The Air Cargo Market

The global air cargo industry moves approximately 60 million metric tonnes of freight annually, representing around 35% of global trade by value despite accounting for less than 1% by volume. High-value, time-sensitive goods dominate the cargo mix: electronics, semiconductors, pharmaceuticals, fresh produce, luxury goods, and automotive parts.

Major air cargo hubs include Memphis (FedEx's global superhub), Louisville (UPS Worldport), Hong Kong, Dubai, Shanghai Pudong, Frankfurt, and Paris Charles de Gaulle.

Types of Air Cargo Services

Integrators (FedEx, UPS, DHL Express) operate their own aircraft fleets, ground networks, and customs clearance systems end-to-end. They offer the most reliable, fastest service for small parcels and time-definite freight.

Belly cargo: Approximately 60% of air cargo travels in the lower holds of passenger aircraft. Airline cargo divisions (Lufthansa Cargo, Emirates SkyCargo, Air France KLM Cargo) sell this space to freight forwarders and shippers.

Freighter aircraft: Dedicated cargo aircraft (Boeing 747F, 777F) carry the bulk of heavy freight. During the COVID-19 pandemic, passenger belly capacity collapsed, causing a dramatic freight rate spike that illustrated how dependent global supply chains are on passenger aviation.

Air Freight vs. Ocean Freight

Air Cargo Pricing

Air cargo is typically priced by chargeable weight — the greater of actual weight or volumetric weight (length × width × height ÷ 6,000 for cm, or ÷ 139 for inches). This prevents carriers from losing revenue on large, light packages.

Fuel surcharges, security surcharges, and handling fees are added on top of the base rate.