• Southeast Asia is becoming a key air cargo region as Vietnam and Thailand grow as high-tech manufacturing hubs, driving demand for flexible capacity and digital solutions
• Turkish Cargo combines freighter and bellyhold space, expands block space agreements, and uses Istanbul’s SMARTIST hub to provide fast, secure, and specialised handling for time-sensitive cargo like pharma and electronics
• Dynamic capacity management, AI-driven tools, and digital upgrades enable real-time demand matching, improved visibility, and operational efficiency across volatile regional and intercontinental routes

As production footprints shift and e-commerce accelerates, Southeast Asia is becoming a strategic battleground for global air cargo carriers. Vietnam and Thailand, in particular, are rising as high-tech manufacturing hubs — and the data shows that air freight flows are evolving accordingly.

While China and Hong Kong remain dominant in terms of outbound tonnage, regional diversification is driving more carriers to rethink capacity allocation, digital capabilities and hub design. Turkish Cargo is among those moving early to capture the shift, offering a case study in how flexible deployment and tailored solutions are becoming key to staying competitive.

Southeast Asia’s export profile is changing

Vietnam’s electronics exports to the US surged over 75 percent between 2020 and 2024, according to UN Comtrade data. Thailand, meanwhile, has become a rising force in automotive and semiconductor production. 

  “As Turkish Cargo, we see strong growth potential in Southeast Asia, particularly in Vietnam and Thailand, where rising high-tech production and e-commerce demand are driving exports to the US,” said Volkan Solmaz, Cargo VP of Asia and Far East at Turkish Airlines.

This rising demand is pushing carriers to move beyond traditional freighter lanes or seasonal charters. Solmaz pointed to Turkish Cargo’s expansion of block space agreements in Hong Kong and Vietnam as part of a longer-term strategy. The goal: secure predictable lift for exporters in a region where competition for capacity is intensifying.

Bellyhold utilisation on high-frequency passenger services is also being strategically paired with freighter capacity, especially on eastbound lanes. “We optimise two-way traffic to ensure every available space is used effectively. Close coordination between cargo and passenger operations allows us to allocate capacity efficiently across the region,” Solmaz said.

From speed to specialisation

In Asia’s digitally mature markets, customers increasingly expect instant booking, real-time visibility, and fast turnaround — especially for time-sensitive goods like pharmaceuticals, semiconductors and e-commerce parcels. This is reshaping how airlines invest in both digital systems and physical infrastructure.

“Asia-Pacific is one of the most digitally advanced regions, and this is clearly reflected in customer expectations,” Solmaz noted. “Today, over 90% of bookings in Asia are processed digitally via TKGO.”

The carrier’s Istanbul hub, SMARTIST, plays a critical role in delivering the speed and security these shipments require. Tail-to-tail connections now cut transit time on lanes such as China to South America to just 27 hours. “It is almost like linking two ends of the world in a single day,” said Solmaz.

Dedicated handling zones, ASRS systems, and AI-driven coordination tools are becoming standard requirements rather than luxury features. “The facility is equipped with ASRS systems, 24/7 monitored temperature-controlled areas, and fully secured VAL and VUN rooms,” Solmaz explained, citing their role in ensuring high-value shipments are processed with minimal delay.

The focus on special cargo is especially clear in the pharma and electronics segments. Turkish Cargo’s TK Pharma product, for instance, is CEIV/GDP-certified and split into tiered service levels. For electronics, the carrier has introduced “secure transfer zones and optimised handling flows to minimise risks and shorten transit times,” Solmaz said.

Dynamic capacity is the new normal

The challenge in 2025 is not just capacity — it’s agility. Air cargo flows in Asia remain volatile, with uneven recovery in consumer markets and on-going shifts in sourcing. Turkish Cargo’s response has been to rely less on fixed freighter rotations and more on real-time demand matching.

“We adopt dynamic management and proactive action to optimise capacity across our network,” said Solmaz. This includes inter-Asia charters from high-demand origins, use of over 60 partner airlines for flexible routing, and belly-freighter combinations tailored to markets.

China’s main cargo airports and Hong Kong still provide strong volumes to Europe and Africa, but the growth curve is flattening. Solmaz sees diversification taking root elsewhere: “At the same time, Central Asia’s multimodal hubs are becoming more important as trade flows diversify.”

That includes plans for a new Central Asia hub, along with ongoing upgrades to Turkish Cargo’s digital tools. “We have new-generation freighters on order and are upgrading our digital systems to provide customers with greater visibility and control,” Solmaz confirmed.

Notably, machine learning-based revenue management systems and AI assistants like CARGY are being integrated to improve pricing and booking response times — a clear signal that operational tech is no longer siloed, but embedded into customer service and commercial decision-making.