Air cargo sector accelerates shift towards digital agility over infrastructure expansion

Global air cargo competitiveness is being reshaped as demand for rapid, data-driven logistics increases, prompting airports, airlines, handlers and regulators to prioritise digital interoperability and automation over traditional capacity growth.

Global air cargo competitiveness is being reshaped by agility rather than by bricks-and-mortar expansion alone. According to the original report, as terminals built around static processes confront volatile demand, regulatory c...

omplexity and fragmented supply chains, airports, airlines, handlers and shippers are being forced to reconfigure as integrated, data-driven logistics ecosystems capable of rapid recalibration.

Industry data shows the scale and urgency behind that shift. Airports Council International (ACI) Asia-Pacific and Middle East statistics indicate those regions accounted for nearly half of world air cargo volume, with Asia-origin cargo representing 41%, and traffic growth of 15% in Asia‑Pacific and 17% in the Middle East in 2024. The ACI release notes airports in those regions are poised to add capacity equivalent to 14 Hong Kong International Airports between 2025 and 2035 , a planned expansion that, the report argues, will only deliver value if paired with policy and systems upgrades.

Policy alignment and digital interoperability, not terminal size, are central to the argument. Tej Contractor, Vice President at the International Federation of Freight Forwarders Association (FIATA), said in the original report that “True agility requires more than infrastructure, it requires alignment.” He warned that divergent customs processes, inconsistent documentation standards and uneven digital maturity continue to impose administrative friction, and he urged customs digitisation, interoperable documentation frameworks and blockchain-backed trade records to stem accumulated delays.

From the airline perspective, agility now informs network and product strategy. Gagan Gupta, Head of Cargo Operations at Air India, told the original report that carriers must redesign uplift capacity, transfer points and ground processes as demand signals shift. “We are expanding in a world where demand signals shift rapidly,” he said, adding that next‑generation terminals must handle diverse cargo mixes through automated sorting, variable‑temperature zones and streamlined landside–airside movements. McKinsey analysis supports this view, noting that redesigned automated processes, digitised sales and tighter partnerships are key to preserving air freight’s speed and service advantages in an otherwise sluggish market.

Ground handlers face parallel pressure to deliver speed with compliance confidence. Nikolai Schaffner, Global Head of Commercial, Cargo at Swissport, said in the original report: “We are expected to deliver faster, with higher accuracy, under tighter regulatory scrutiny.” The report describes how smart terminals using digital acceptance systems, automated queues and real‑time capacity dashboards enable handlers to deploy labour more efficiently, reduce dwell time and raise predictability for airlines and shippers.

Airports themselves are being recast as logistics engines rather than transit points. Stephan Horn, Senior Manager for Strategy and Business Development at Frankfurt Airport, told the original report that “Connectivity is no longer defined only by flights but by the quality of the ecosystem surrounding them.” He highlighted the value of free trade zones, multimodal corridors, smart warehousing and automated clearance systems, and stressed that sustainability , energy‑efficient facilities, low‑emission ground fleets and circular waste systems , is increasingly shaping investment decisions. That framing aligns with ICAO’s recent Global Air Cargo Summit, where representatives from roughly 80 states and more than 600 participants urged digital integration and emissions reduction as pillars of a robust, sustainable cargo sector.

Shippers, particularly in regulation‑heavy sectors, now equate agility with compliance certainty. Sai Mungara, Global Head of Supply Chain at Cipla, said in the original report: “Speed‑to‑market is essential, but so is the assurance that every regulatory and quality requirement has been met.” For pharmaceuticals and other temperature‑sensitive goods, he argued, real‑time traceability, risk flags and validated temperature documentation are prerequisites for supply‑chain viability rather than optional extras. ICAO has likewise emphasised air cargo’s role in supporting the UN Agenda 2030 Sustainable Development Goals by connecting remote markets and enabling trade for small island and landlocked developing states.

Regional strategies and strategic partnerships are accelerating the transition. Gulf hubs, for example, are leveraging automated freight corridors and multimodal linkages to expand resilience and transhipment capacity; the Middle East now handles an estimated 14% of global air cargo flows, strengthening the region’s competitive position. Commercial alliances and technology tie‑ups are also driving capability. Private‑sector moves to integrate AI, cloud and advanced networking into logistics stacks , from large technology firms partnering with telecom and cloud providers to acquisitions aimed at cloud‑driven logistics solutions , demonstrate how cross‑industry collaboration is being used to scale digital transformation rapidly.

Taken together, these developments point to a new architecture for global air cargo competitiveness. Physical capacity expansion will remain essential, especially in fast‑growing markets, but predictability and resilience will be delivered through policy synchronisation, digital interoperability, automation and collaborative planning. As Fletcher Samuel, Assistant General Manager, Cargo Business at Bangalore International Airport, said in the original report, India’s rise as a manufacturing and life‑sciences hub depends on infrastructure that supports time‑sensitive, regulation‑heavy flows “at global scale.”

The practical implications are clear. Airports and corridors that pair expanded capacity with interoperable customs processes, multimodal connectivity and real‑time data will be better placed to attract transhipment flows and high‑value cargo. Handlers and carriers that invest in targeted automation and shared forecasting tools will reduce dwell times and improve service reliability. Regulators that accelerate digitisation and harmonise documentation will lower friction and unlock the value of new infrastructure. And shippers will increasingly select gateways that can demonstrate validated conditions and continuous visibility across handovers.

In short, agility has moved from adjective to currency. The ability to move goods swiftly, transparently and intelligently , underpinned by aligned policy, interoperable systems and targeted automation , will determine which airports and regions capture the next era of global trade.

Source: Noah Wire Services