Data-driven decision-making has emerged as a critical factor for success in the airfreight industry, allowing those in the space to manage evolving market conditions and seize new opportunities in the ever-competitive world of air logistics.
“The air cargo industry stands at a crucial juncture,” Kate Meng, Manager of Industry Solutions for North Asia at IATA, remarked. “Economic fluctuations, surging e-commerce demand, and geopolitical uncertainties have created a challenging landscape. Business intelligence is not just a tool—it’s the key to clarity, enabling informed decisions that drive growth and resilience.”
Dynamic market
The air cargo market has demonstrated resilience despite economic fluctuations. Meng noted that global air cargo revenues in July 2024 were 41 percent higher than in the same period in 2019, reflecting the sector’s capacity to adapt and thrive. Key contributors to this growth include booming e-commerce, particularly from Asia to North America and Europe, and a gradual expansion of international trade.
“e-commerce has redefined the air cargo landscape,” Meng explained. “It’s not just about transporting goods; it’s about meeting consumer expectations for speed, reliability, and transparency. This has created significant opportunities, but also challenges that require innovative solutions.”
However, headwinds remain. Meng pointed to geopolitical tensions, rising operational costs, and capacity constraints in key trade hubs as potential disruptors. “While the short-term outlook for air cargo is bright, uncertainties like supply chain bottlenecks and maintenance delays must be addressed proactively,” she added.
Power of intelligence
Central to Meng’s message was the role of data-driven decision-making in navigating these challenges. She introduced IATA’s CargoIS, a leading market intelligence tool that provides real-time insights into cargo performance across regions and trade lanes.
“Gone are the days when gut feeling drove decisions,” Meng asserted. “With tools like CargoIS, businesses can access actionable intelligence that reflects market realities, enabling them to optimise operations, improve profitability, and identify growth opportunities.”
CargoIS allows users to benchmark performance, analyse trade lane dynamics, and gain insights into customer behaviour. Meng emphasized its value in revenue management, sales strategy, and operational optimization. “Whether it’s identifying emerging markets or adjusting to shifts in consumer demand, CargoIS provides the data you need to act decisively,” she said.
Competitive advantages
Meng highlighted air cargo’s growing competitiveness over maritime transport. Since mid-2024, air freight rates have surpassed pre-pandemic levels, reflecting its cost-efficiency and reliability. “Air cargo has proven itself as a viable alternative, especially for high-value, time-sensitive goods,” she noted.
Moreover, the chargeable weight of special cargo, including pharmaceuticals and perishables, saw an 11 percent year-on-year increase in the first half of 2024. Meng attributed this to the industry’s investments in specialised handling and infrastructure, which have positioned air cargo as the preferred mode of transport for sensitive goods.
Emerging markets
As mature markets like North America and Europe stabilize, Meng urged the industry to focus on emerging markets in Southeast Asia, Latin America, and Africa. These regions represent untapped potential for e-commerce and general cargo, offering significant opportunities for growth. “The key to unlocking these markets lies in tailored strategies that address local needs and challenges,” she explained.
“The future of air cargo belongs to those who can harness the power of data,” Meng stated. “By investing in business intelligence, we can not only adapt to market changes but also drive sustainable growth and innovation.”
