“The advanced high-tech cargo sector has swiftly emerged as a pivotal growth force,” remarked Jaedong Eum, executive vice president and head of Korean Air’s cargo segment.
Highlights:
- Airlines recalibrating networks around semiconductor manufacturing hubs as AI reshapes regional trade.
- Stricter import regulations in the US and EU are stifling e-commerce shipments.
- Korean Air reports AI-driven cargo has surpassed China’s e-commerce shipments as its main growth driver.
The global competition to advance artificial intelligence is reconfiguring Asia’s air cargo landscape, forcing airlines to adapt their networks to burgeoning semiconductor manufacturing hubs as the momentum of cross-border e-commerce slows.
In stark contrast to the parcel boom following the pandemic, the demand associated with AI infrastructure is now bolstered by extensive, multi-year orders for sophisticated memory chips and processors, coupled with substantial investments earmarked for data centres, according to insights from airlines and logistics firms.
Concurrently, stringent low-value import regulations in the United States and Europe have hindered the cross-border e-commerce trade that once significantly propelled industry growth.
“E-commerce was previously the single most significant growth pillar for air freight; however, that trend has markedly shifted,” stated Niall van de Wouw, chief airfreight officer at Xeneta, following the company’s mid-year analysis.
Korean Air Lines presents a compelling case study of this transformative shift.
Cargo revenues soared 46% in Q2, reaching 1.54 trillion won ($1.07 billion), primarily driven by demand for AI chips, server racks, and data centre infrastructure, which have eclipsed e-commerce shipments from China as the leading catalyst for growth.
“The advanced high-tech cargo sector has rapidly emerged as a core growth driver,” declared Jaedong Eum, executive vice president and head of Korean Air’s cargo operations.
The demand for these products is remarkably evident, noted Eum, with orders for high-bandwidth memory chips and processors extending two to three years into the future, as requirements continue to outstrip supply.
Global sales of semiconductors experienced an unprecedented doubling year-on-year in April, marking the most significant growth since records commenced in 1986, according to Xeneta.
Conversely, China’s low-value and e-commerce exports saw a 7% decline in May, reflecting six consecutive months of downturn.
Last year, the US terminated duty-free exemptions for low-value imports from China, while this month, the European Union likewise eliminated its own duty-free threshold.
On Sunday, fast-fashion retailer Shein acknowledged that these adjustments had adversely affected its business in the US, projecting further challenges in Europe.
Japan’s ANA Holdings commented that the EU’s regulatory change poses a downside risk for the broader cargo market, even as semiconductor-related shipments remain robust.
Transforming Trade Routes
This evolving cargo composition is also redefining trade routes across Asia. Japan is furnishing semiconductor manufacturing equipment, South Korea is producing advanced memory chips, while Taiwan stands as a nexus for cutting-edge chip production.
Countries like Vietnam, Malaysia, Thailand, and Singapore are emerging as crucial manufacturing and assembly hubs for AI servers intended for markets in North America and Europe.
Freight throughput at Singapore’s Changi Airport surged by 8.7% year-on-year in the first half, driven by vigorous global demand for semiconductors, as conveyed by Lim Ching Kiat, the airport group’s executive vice president for air hub and cargo development.
Airlines are reorganising operations to align with these evolving cargo flows.
Japan Airlines announced that technology products constituted approximately 80% of the increased air exports from Asia, excluding China, in the past year, emphasizing how semiconductor and AI-related hardware are reshaping regional cargo patterns.
Consequently, it has expanded freighter services connecting semiconductor hubs such as Taipei, Bangkok, and Hanoi with Tokyo’s Narita Airport.
ANA stated that it is integrating Nippon Cargo Airlines, thereby allowing more large freighters to operate on trans-Pacific and European routes while utilizing its Asian network to channel semiconductor shipments from manufacturing hubs across the region.
In Taiwan, China Airlines has augmented its Southeast Asia freighter flights as manufacturers diversify production, reporting that AI-related demand bolstered cargo volumes by 8.1% in the first half of the year. EVA Airways remarked that AI-related shipments now account for up to half of its cargo revenue.
Airlines acknowledge that AI hardware necessitates distinct handling techniques compared to traditional air freight due to the presence of delicate, high-value semiconductor manufacturing equipment, graphics processors, and comprehensive server racks.
The International Air Transport Association (IATA) estimates that AI-related goods contributed 53.5% of the value of goods transported by air in 2025, despite representing merely 7% of cargo volume.
Unlike typical e-commerce cargo, AI hardware is compact, exceptionally valuable, and often time-sensitive, reaffirming the premium associated with air transport.
To adapt to these market shifts, Cathay Pacific Airways has implemented software that automates the assessment of how sensitive semiconductor equipment and AI hardware should be loaded and secured within aircraft.
This surge in demand is also testing cargo infrastructure. Dimerco Express Group reported that AI and semiconductor shipments had filled Taiwan’s Taipei air cargo hub to capacity in July, resulting in tight freight availability on routes to the US and within Asia.
“As major technology firms unveil next-generation AI processors and maintain their long-term infrastructure commitments, we anticipate robust cargo demand to endure through the latter half of 2026,” concluded Korean Air’s Eum.
Source link: Tbsnews.net.
