As businesses and consumers increasingly turn to online platforms for their shopping needs, the logistics network must adapt to accommodate this shift. Key trade routes are being redefined, and new opportunities are emerging, particularly in Asia and the Americas. The interplay of regulatory changes, technological advancements, and cultural influences is reshaping the dynamics of air cargo, creating a vibrant ecosystem.
Incheon Airport, strategically located at the northeastern edge of major Asian hub airports, is witnessing a significant surge in airfreight demand, primarily driven by the booming e-commerce sector. According to recent data, the largest share of cargo handled at Incheon is e-commerce, with an impressive 336,000 tonnes, representing 41.2 percent of the total tonnage transported in the first half of the year, primarily destined for North America.
As an intercontinental hub linking Asia and the Americas, Incheon Airport’s key airfreight trade lanes have evolved notably over the past decade. In 2014, North America accounted for 22.8 percent of cargo traffic, and by 2024, this figure has risen to 23.7 percent. Similarly, Southeast Asia’s share increased from 15.0 percent to 17.6 percent, indicating a continuous upward trajectory in cargo transportation along these vital routes.
While e-commerce cargo remains a dominant force, the landscape is changing. Regulatory pressures in major markets, including the US and Europe, are anticipated to temper growth rates.
“As major destination countries strengthen regulations like lowering de minimis thresholds and imposing customs clearance fees, we expect the explosive growth of e-commerce cargo to moderate,” Hag Jae Lee, Incheon Airport’s CEO, noted.
In contrast, as the supply chain for advanced industries such as semiconductors is changing from China to the US, Europe, Japan, and Korea, the demand for international transportation of these products is expected to increase as they navigate the complexity of international sanctions.
In addition to e-commerce, Incheon is also benefiting from a rising tide of Korean cultural products, including cosmetics and entertainment content, fuelled by the global popularity of Korean dramas and music. The traditional air cargo sectors, including semiconductor production equipment and automobile parts, are also witnessing steady growth.
Regional stance
The geographical advantages of Incheon Airport significantly enhance its operational efficiency. As a primary hub for direct cargo flights to the Americas, it serves as a critical transit centre for major cargo airlines. This strategic location ensures rapid and efficient cargo movement across continents, further cementing Incheon’s position as a key player in the global airfreight market.
In response to escalating demand, Incheon Airport boasts a cargo terminal capable of handling 4.5 million tonnes annually, supported by four runways that operate around the clock. The airport’s extensive 22-million-square-foot logistics complex provides essential infrastructure for freight forwarders, enabling diverse business models to thrive.
“Incheon Airport has high connectivity with China through maritime transport,” Lee highlighted. “Incheon Airport connects various ports in China with 31 weekly ferry services through Incheon Port, Pyeongtaek Port, and Gunsan Port, which are located near Incheon Airport. The weekly transport capacity is a whopping 5,500 TEU.”
Environmental approach
Environmental sustainability is a top priority at Incheon Airport. The airport aims to convert to 100 percent renewable energy by 2040, with plans for a 38MW solar power plant and a 10MW geothermal facility set to commence operations soon.
“Incheon Airport is expanding its investment in sustainable aviation fuel in cooperation with Korean Air in preparation for the commercialisation of the International Civil Aviation Organization’s SAF,” Lee highlighted.
“Last year alone, we successfully implemented a demonstration project for refuelling cargo planes with sustainable fuel, demonstrating our dedication to environmental stewardship,” Lee continued.
Collaborative position
In a bid to enhance cargo visibility and tracking, Incheon Airport has initiated a collaboration with the Korea Customs Service, Korean Air, and Swissport. This partnership aims to establish a digital air logistics process and design a smart cargo terminal, thus revolutionising the air logistics landscape. Such innovations are crucial as the industry adapts to the demands of modern logistics.
“Cooperation with local partners in APAC is very important not only for smooth air cargo transportation but also for sustainable growth,” Lee outlined.
