The Asia-Pacific (APAC) region has long been a powerhouse of global trade, fuelled by robust economic growth, expanding consumer markets, and strategic geographical advantages.
As the world emerges from the challenges of the Covid-19 pandemic, the region’s economy is poised for a resurgence, driving demand for air logistics services and shaping the future of freighter fleets in the process.
Economic recovery
With economies gradually reopening and vaccination efforts underway, the APAC region is witnessing a gradual recovery from the economic impact of the pandemic. Governments are implementing stimulus measures and infrastructure investments to stimulate growth, while businesses are adapting to new market realities and consumer behaviours.
As trade rebounds and supply chains stabilise, the outlook for air logistics in the APAC region remains positive. e-commerce continues to thrive, driving demand for express delivery services and spurring investment in air cargo infrastructure and capacity expansion. Moreover, the region’s position as a manufacturing hub for electronics, automotive, and consumer goods ensures sustained demand for airfreight services.
Marvin Tan, Senior Vice President of Cargo at Singapore Airlines, expressed his views on the importance reediness of the air cargo segment by explaining: “Over the weekend, with what happened over in with Iran and Israel, we’ve compiled issues now that we’re going to grapple with, right, because a lot of our capacities and medical, so the flights will go non-stop, and they have to go non-stop for the passenger experience.
“But it means, unfortunately, cargo gets the short end of the stick, we have to adapt with that, we have to quickly find some solutions, work with our partners, to try to recover the cargo that’s been held back.”
Industry trends
In response to shifting market dynamics, airlines operating in the APAC region are adapting their fleet strategies to optimise capacity and meet evolving customer demands. The grounding of passenger aircraft during the pandemic highlighted the importance of dedicated freighter fleets in maintaining supply chain resilience and meeting the surge in demand for air cargo services.
Thus, as a result of this, Singapore Airlines is preparing for the arrival of its first Airbus A350F as it continues to manage the hurdles challenging the freighter market across its network. Singapore Airlines Cargo has a fleet of 10 dedicated freighter aircraft consisting of 7 Boeing 747-400F and Boeing 777F. Being the first Boeing 747-400F operator to place an order of 7 Airbus A350F, the carrier has decided to gradually phase out its 747F by 2026.
“From an operational perspective, I think two things. One is that you lose the nose-loading capability; for us, this is a fairly small segment of the cargo, so I think it’s manageable for us. The other aspect, of course, is more just the loading configuration. Because of the different contours of the aircraft, some adjustment is needed there,” Tan stated.
Airlines are investing in modernising and expanding their freighter fleets to capitalise on opportunities in the APAC air cargo market. New-generation freighter aircraft, such as the Boeing 777F and Airbus A330-200F, offer increased payload capacity, fuel efficiency, and range, enabling airlines to enhance operational flexibility and cost-effectiveness.
“All these factors come into play in terms of us figuring out how best to make use of the capacity that we have on hand until, of course, the A350Fs come online,” Tan added.
Moreover, the conversion of passenger aircraft into temporary freighters has emerged as a viable solution to address the capacity crunch in the APAC region. Airlines are leveraging cargo-only operations to maximise utilisation of existing fleet assets and capitalise on the growing demand for air cargo services.
Logistics outlook
Looking ahead, the APAC region is poised for continued growth and innovation in trade and air logistics. The implementation of trade agreements such as the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will further facilitate cross-border trade and investment, driving demand for air cargo services.
However, challenges remain, including geopolitical tensions, supply chain disruptions, and environmental sustainability concerns. Stakeholders in the APAC air logistics industry must collaborate closely to address these challenges and seize opportunities for growth and development.
By investing in infrastructure, embracing digitalisation, and adopting sustainable practices, the APAC region can strengthen its position as a leading hub for trade and air logistics. With a focus on innovation, collaboration, and resilience, the region is poised to shape the future of global commerce and air transportation in the years to come.
“I think there will be opportunities where the numbers are very strong and very robust, which will make a good case for freight operations,” Tan concluded.
