CARGOCONNECT-JUNE2026 - Flipbook - Page 48
COVER STORY
AIR CARGO ASCENDS
differentiators within cargo markets. By
leveraging digital innovation, a modern 昀氀eet
structure, and partnership-led service models,
Riyadh Cargo is positioning itself towards
high-value and sensitive cargo segments that
require greater operational precision and
end-to-end visibility. The broader objective,
he clari昀椀es, is to create dependable and customised cargo solutions capable of supporting
increasingly complex shipment requirements
while maintaining stable operations amid
volatile market conditions.
A similar shift is becoming increasingly
visible across global airline cargo strategies
more broadly. Malik critically views that
air cargo today is carrying more value per
kilogram than ever before, pushing airlines
to prioritise yield quality over raw shipment
volume. He says, carriers are increasingly
focussing on specialised cargo verticals such
as pharmaceuticals, e-commerce and express
shipments, perishables, semiconductors,
and high-technology goods where reliability, speed, and transparency command
signi昀椀cantly stronger margins.
According to Malik, this transition is
being driven by a combination of margin
pressures, constrained capacity environments, and rising customer expectations
around shipment visibility and handling
precision. As a result, airlines are steadily
increasing investments into digitalisation,
advanced tracking capabilities, temperaturecontrolled infrastructure, and premium
cargo products designed around highly
specialised logistics requirements. In many
ways, he indicates, sharper customer segmentation allows carriers to protect pro昀椀tability while simultaneously participating
in broader cargo growth opportunities.
Sullivan believes India itself is steadily
emerging as one of the most strategically
important markets within these evolving
cargo dynamics. Drawing from IATA CargoIS
data, Sullivan points out that between 2023
and 2025, India registered strong double-digit
air cargo growth, with exports rising by
nearly 15% YoY and imports expanding by
around 11% in chargeable weight. According
to him, this re昀氀ects India’s increasing integration into diversified global supply chains
as manufacturers and shippers seek more
secure and decentralised sourcing strategies.
Sullivan notes that India’s cargo positioning is becoming increasingly critical due
to its connectivity with three major global
trade regions. Europe continues to remain
India’s largest air cargo export market,
while the Middle East serves both as a major
destination market and an increasingly
strategic transshipment hub linking India
with wider international corridors. North
48 | CARGOCONNECT JUNE 2026
E-commerce growth is reshaping cargo
infrastructure around faster throughput, lower
dwell times, and precision logistics.
America, meanwhile, continues to drive
demand for specialised, high-value shipments, particularly pharmaceuticals. He
further points out that India’s performance
across cargo markets remains uneven but
strategically signi昀椀cant, with Saudi Arabia
recording sustained double-digit cargo
growth through 2025, signalling stronger
India-Gulf cargo integration, while markets
such as Spain have demonstrated greater
volatility due to changing demand cycles
and network adjustments.
For belly cargo operators in particular,
the move towards value-led strategies is
becoming even more deliberate. Kirchner
notes that at Finnair Cargo, constrained belly
capacity naturally makes yield prioritisation
essential rather than optional. Leveraging the
airline’s modern A350 昀氀eet and favourable
maximum take-o昀昀 weight con昀椀gurations,
capacity is increasingly being deployed
towards shipments and trade lanes capable
of generating stronger revenue contribution
per 昀氀ight rather than simply maximising
total tonnage. Kirchner quotes this strategy
is steadily reducing exposure to low-yield,
high-volume cargo 昀氀ows while enabling
Finnair Cargo to become more selective
in the business it accepts.
What is becoming evident is that value
is being de昀椀ned not merely by pricing, but
by reliability, network connectivity, schedule
frequency, and operational consistency. At
the same time, airlines are also lowering
dependence on opportunistic spot-market
business and instead strengthening focus
on long-term customer relationships aligned
with network strengths and sustainable
growth strategies.
Running parallel to this shift towards
value-driven cargo deployment is the
explosive rise of e-commerce and express
logistics, which is fundamentally reshaping
cargo infrastructure planning, handling
models, and network economics across
airports globally.
Schwab notes that e-commerce volumes
at Frankfurt Airport, in particular, have
grown rapidly in recent years, especially
across China-Europe trade corridors. Today,
e-commerce shipments account for nearly
30–35% of cargo originating from China,
with Frankfurt alone handling close to
eight million e-commerce shipments every
month. This surge is signi昀椀cantly altering
cargo processing dynamics, forcing airports
BLR Airport is
integrating pharmagrade corridors, wider
dock interfaces,
and automated
material-handling
readiness to support
next-generation
cargo flows that
increasingly demand
speed, traceability,
and environmental
control.
ARUN CHANDRA
VP– AVIATION BUSINESS,
BANGALORE INTERNATIONAL
AIRPORT
