Global air freight growth is robust but uneven, with airlines primarily focusing on tactical ULD procurement driven by sustainability, cost, and shifting trade patterns. Lightweight composite containers and fire-resistant smart systems are emerging as key innovations.
Sustainability and cost-effectiveness are now central to ULD strategies. Lifecycle analysis, circular designs, and collapsible containers are reducing emissions, maintenance, and relocation costs while improving total cost of ownership.
IoT-driven tracking, predictive maintenance, and coordinated maintenance practices are transforming ULD management, laying the foundation for lighter, safer, and digitally connected fleets that balance performance and environmental responsibility.
Air freight operators are entering a period of cautious optimism as global demand for unit loading equipment (ULDs) continues to evolve. Revenue passenger kilometers (RPK) and freight ton-kilometers (CTK) both achieved steady year-over-year growth in the first half of 2025, although momentum slowed by June. Market dynamics remain complex, influenced by geopolitical conflicts, changes in US tariffs, aircraft delivery delays, and evolving carbon emission pressures.
AviusULD CEO Charles Drummond observed: "The medium- to long-term outlook is optimistic, with air freight projected to grow at approximately 4% annually over the next two decades. However, airlines are more tactical than ever in their ULD sourcing, weighing operational needs against sustainability and cost considerations." Trade routes are showing divergence. The Asia-North America corridor is impacted by tariff adjustments, while routes connecting Asia-Europe and Middle East-Asia remain more resilient. E-commerce continues to expand at approximately 9% annually, but changes in U.S. policy are redirecting traffic to Southeast Asia and the Middle East. Pharmaceuticals in temperature-controlled containers are projected to grow by approximately 10% annually, driving a focus on weight reduction, energy efficiency, and digital visibility.
Drummond added: "Perishable goods remain the cornerstone of air freight, especially high-value, time-sensitive items such as flowers, seafood, and premium agricultural products. Innovation here is focused on passive insulation and thermal protection technologies to ensure cargo integrity." Route Shifts and Operational Pressures Airline networks are recalibrating to operational, environmental, and regulatory pressures. "The decarbonization drive in the aviation industry means airlines are not just focused on fuel consumption," Drummond explained. "Our independent analysis with EcoMatters found that over 99% of ULD lifecycle emissions occur in flight due to the additional fuel required to carry their weight." Reducing weight is the most effective lever for emissions reduction, prompting airlines to shift from traditional aluminum containers to lightweight composite containers. "Our Endumax® containers are up to 51 kg lighter, combining low emissions, durability, and maintainability to improve overall cost of ownership," he said.
Safety pressures are also reshaping designs, especially with the rise of lithium-ion battery-powered devices. "Fireproof containers and shields are being used, but adoption is uneven," Drummond noted. "Our SmartULD Firetag system integrates digital tracking with sensors to detect lithium-ion battery escape before thermal runaway, providing airlines with early intervention capabilities." Narrow-body aircraft like the Airbus A321XLR are creating new operational modes, especially on long-haul routes. "These aircraft can carry multiple AKH containers, suitable for belly use, but with limited cargo capacity, smaller than a standard LD3, but highly efficient for belly use," Drummond explained. "We anticipate increased demand for AKH production and supply, particularly in the gateway markets of the U.S. and Europe." Total Cost of Ownership (TCO) calculations are becoming increasingly complex. "It's not just about the purchase price," Drummond emphasizes. "Operators need to consider fuel consumption due to weight, maintenance frequency, losses, storage, relocation, and end-of-life operations." Leasing vs. Popular Strategies. "Short-term leasing meets seasonal demand, while outsourced ULD management translates capital expenditure into operating expenses," he says. "Good IoT tracking now allows airlines to reduce their seven-set buffer inventory per aircraft from seven to three sets in certain situations." Short-term leasing is a strategic measure designed to address short-term ULD demand with high seasonality. Outsourcing is more strategic, where airlines choose to translate capital expenditure into operating expenses without the processes and systems that optimize inventory flow. Door Closure Innovations illustrate this. "Traditional Velcro closures are common repair points," Drummond says. "Our patented SEN door reduces downtime and lowers total cost of ownership and emissions when relocating damaged units." "Choices, Sustainability, and Circular Practices"
Airlines are increasingly incorporating sustainability metrics into their procurement decisions. "Lifecycle analysis is crucial," Drummond insists. "While aluminum is recyclable, over 99% of ULD's carbon footprint comes from fuel combustion. Weight reduction dominates sustainability outcomes." Composite materials, such as AviusULD's Endumax panels, offer significant advantages. "Our lightest AKE weighs only 51 kg, 14 kg lighter than aluminum alternatives," Drummond explains. "Composite materials reduce fuel consumption and emissions, extend panel life, and reduce maintenance. Modular design ensures the feasibility of circular economy practices such as refurbishment and recycling." Collapsible containers also contribute to increased efficiency. "While slightly heavier when full, collapsible AKEs can be folded flat for repositioning, significantly reducing fuel burned when moving empty containers," Drummond says. "This innovation maximizes payload utilization and reduces the carbon footprint across the network." "IoT, Predictive Maintenance, and Visualization
Digital tracking is transforming how ULDs are managed. Drummond notes, 'Approximately 20% of ULDs globally support IoT,' and this goes beyond simply tracking location; it's monitoring condition, occupancy, and impact events." Integrating predictive maintenance into the operator pool allows for early detection of damage and optimized network planning.
'This is entering a new phase,' he adds. 'IoT tracking is expanding, requiring managerial courage and AI-assisted decision-making. We're moving towards exception-based management, rather than micromanaging every single asset.' Current IoT tracking is not yet a proof of concept. Most existing tracking systems are based on BLE systems, which require expensive reader infrastructure and have limited visibility. Patented AviusULD energy harvesting technology addresses battery life limitations, enabling more sophisticated tracking and communication technologies without the need for infrastructure and improving asset visibility.
Harmony and Outlook
Operational inconsistencies remain a barrier. Significant differences exist in ULD handling and storage practices, high frontline staff turnover and limited training exacerbate damage rates, and message compliance is uneven." "Adopting a globally consistent approach will reduce inefficiencies, damage, and losses," Drummond said.
Centralized versus decentralized maintenance networks also impact efficiency and sustainability. "Decentralized maintenance reduces downtime and carbon emissions, but contracts and analytics must be carefully managed," he advised. The structured Lean Six Sigma methodology implemented in the AviusULD Ascend project demonstrated that maintenance facilities can double throughput while reducing footprint, highlighting untapped industry potential.
"Looking ahead," Drummond concluded, "airlines will prioritize lighter, safer, and digitalized ULDs. Innovations in materials, IoT, and operational design will determine who succeeds in the next phase of air transport growth, balancing cost, sustainability, and operational efficiency."