Air Cargo: The Other Half of Aviation

What travels by air cargo, why it is expensive but essential for high-value and urgent goods, and how India is trying to grow its air freight business.

Aviation isn’t only about passengers. Air cargo carries a small share of world trade by weight, but a much larger share by value.

What flies

Air freight suits goods that are:

High-value: smartphones, chips, jewellery.
Urgent: spare parts, documents, medical supplies.
Perishable: fresh flowers, fruits, seafood.
Time-sensitive: fashion and e-commerce deliveries.

India’s air exports include pharmaceuticals, electronics such as smartphones, gems and jewellery, and perishables.

Belly cargo and freighters

Belly cargo: much air freight travels in the cargo holds of passenger planes. This makes passenger flights more profitable.
Freighters: dedicated cargo planes carry larger shipments.

During the COVID-19 pandemic, when passenger flights stopped, belly capacity vanished, air freight rates soared, and some airlines flew passenger planes carrying only cargo.

Costs

Air cargo costs many times more per kilogram than sea freight. Companies choose air when speed or value justifies the cost.

India’s position

India’s share of global air cargo is small relative to its economy. Challenges include:

Limited cargo infrastructure at many airports.
Slow customs and handling in the past.
Much Indian cargo is carried by foreign airlines and routed through hubs like Dubai.

Reforms

Faster electronic customs clearance.
Building cargo terminals and cold storage at airports.
Indian airlines adding freighters and cargo capacity.
The government’s National Air Cargo Policy aims to make India a major cargo hub.

E-commerce

The growth of online shopping has increased demand for fast domestic air freight, with companies like e-commerce firms and logistics providers using air networks for quick delivery.

The iPhone shipment

Smartphones assembled near Chennai are exported to the US. Because each box is high-value and buyers want quick delivery, many shipments travel by air, reaching the US in days rather than weeks by sea.

Thinking air cargo is only for small parcels

Air freight carries large volumes of high-value goods, and it is vital for pharmaceuticals, electronics and perishables.

Key takeaways

Air cargo carries a small share of trade by weight but a large share by value.
It suits high-value, urgent and perishable goods.
Belly cargo on passenger flights is a major share of capacity.
India is investing in cargo infrastructure and faster customs.