Air Cargo Connects Businesses To Global Markets, Keep Supply Chains Moving - IATA

KUALA LUMPUR, March 11 (Bernama) -- Air cargo plays a critical role in connecting businesses to global markets and keeping supply chains moving, even as the operating environment becomes more complex, the International Air Transport Association (IATA) said in a statement today.

IATA global head of cargo Brendan Sullivan said it is important for the industry to build resilience in areas we can control or influence amid external events affecting global supply chains, including tariffs and geopolitical shocks.

“Working together to strengthen digitalisation, global standards and supply chain security will position air cargo well to continue supporting economic growth by connecting products to markets,” he said at the opening of the IATA World Cargo Symposium (WCS) in Lima, Peru. 

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Meanwhile, in a separate statement, IATA said air cargo has enabled the frontloading of US$157 billion (US$1=RM3.92) of United States imports in the first quarter (1Q) of 2025, and it transported more than two-thirds of global artificial intelligence (AI)-related goods.

It said these activities supported global trade growth of 2.4 per cent in 2025, well above initial forecasts by the World Trade Organisation, and expanded the global gross domestic product by 3.2 per cent despite significant policy headwinds.

“In 2025, average applied US tariff rates rose to around 17 per cent, with frequent policy shifts and increased trade friction. 

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“Hence, many companies used air cargo to pre-empt tariffs by accelerating shipments,” said IATA. 

IATA head of industry analysis Julia Seiermann said air cargo is a structural component of global economic resilience.

“In 2025, it helped businesses absorb tariff shocks, enabled rapid trade restructuring and supported the expansion of AI investment, helping sustain trade and economic growth in a challenging year,” said Seiermann.

In 1Q 2025, the association said US imports rose by US$193 billion year-on-year (y-o-y), or a 26 per cent increase, while the value of imports by air in the quarter increased 81 per cent y-o-y, totalling US$157 billion. 

As AI investment surged in 2025, IATA said air cargo delivered high-value, time-sensitive equipment such as servers, data storage units, and memory chips efficiently and reliably.

“The rapid increase in demand for AI-related goods in 2025 was met thanks to air cargo, allowing investment to translate into economic activity rather than being constrained by logistics.

“As economies increasingly and strategically rely on high-value technology goods, air cargo will continue to play a critical role in ensuring their timely delivery,” said Seiermann.

According to IATA, air cargo consignments of AI-related goods grew 20 per cent y-o-y, and AI-related goods accounted for 53.5 per cent of the total value of air-transported trade, while representing just seven per cent of its volume, which highlights the segment’s high value density and strategic importance for the industry.

-- BERNAMA