AI race redraws Asian air cargo, replacing e-commerce as growth engine

• Korean Air's cargo revenue jumped 46% in Q2 to $1.07 billion, driven by AI chips and data center infrastructure, with advanced chip orders already extending 2-3 years into the future
• Global semiconductor sales doubled year-over-year in April 2024 (strongest growth since 1986), while China's e-commerce exports fell 7% in May, marking six consecutive monthly declines
• AI-related goods account for 53.5% of air cargo value in 2025 despite comprising only 7% of volume, with shipments requiring specialized handling for delicate, high-value semiconductor equipment and server racks

Summary: AI Race Redraws Asian Air Cargo Market

The global AI boom is fundamentally reshaping Asia's air cargo industry, with semiconductor and AI infrastructure shipments replacing cross-border e-commerce as the primary growth driver.

Key Developments

Korean Air exemplifies this shift, reporting cargo revenue of 1.54 trillion won ($1.07 billion) in Q2, up 46% year-over-year, driven by AI chips, server racks, and data center infrastructure that have replaced Chinese e-commerce as the main growth engine. Advanced chip orders now extend 2-3 years into the future.

Market Data:

• Global semiconductor sales doubled year-over-year in April—the strongest growth since records began in 1986
• China's low-value e-commerce exports fell 7% in May, marking six consecutive monthly declines
• Singapore's Changi Airport saw freight throughput rise 8.7% in H1 2025
• China Airlines reported 8.1% cargo volume growth in H1 2025
• EVA Airways noted AI-related shipments now account for up to 50% of cargo revenue

Market Implications

AI-related goods account for 53.5% of the value of air cargo in 2025 while representing just 7% of volume, according to IATA. This high-value, time-critical cargo commands premium pricing.

Airlines are reorganizing networks around semiconductor hubs in Japan, South Korea, Taiwan, and emerging manufacturing centers in Vietnam, Malaysia, Thailand, and Singapore. Japan Airlines reports technology products drove 80% of increased Asian exports (excluding China).

The e-commerce decline stems from tighter import regulations, with the U.S. ending duty-free treatment for low-value Chinese imports and the EU abolishing its duty-free threshold. Strong AI cargo demand is expected to persist through H2 2026.