Behind these figures, the impacts of industrial transformation have become increasingly prominent. Artificial Intelligence (AI) has stood as the world's most popular development track over the past two years, and this investment boom has spilled over into the air cargo sector.
At the 4th China International Supply Chain Expo (CISCE), Hui Ge, Director of Mainland China Cargo at Cathay Cargo, told reporters that "AI" is a core keyword for the air cargo industry. On one hand, rapid industrial expansion has boosted global demand for AI infrastructure, effectively unlocking new growth momentum for air cargo operations. On the other hand, in-depth AI application is continuously reshaping how air cargo businesses operate.
AI Emerges as a Vital New Growth Driver
As an exhibitor participating in CISCE for three consecutive years, Cathay Cargo showcased new industry shifts centered on AI-related transportation demands, digital development and specialized cargo logistics solutions at this year's expo.
The global air cargo market has entered a new round of readjustment in recent years. Vince Tse, Commercial General Manager of Cathay Cargo, noted obvious market changes: cross-border e-commerce shipping demand keeps rising, while more manufacturing facilities settling in Southeast Asia have spurred growing transport needs for high-value, time-sensitive goods.
Among all market shifts, the AI industrial chain represents the most noteworthy growth engine.
"AI will be a core business highlight for us this year," Vince Tse stated. Massive growth in global AI infrastructure investment is projected for 2026, with a large share allocated to hardware, for which air cargo acts as a critical link connecting such equipment to worldwide markets. High-value commodities including server racks, precision machinery, semiconductors, premium electronics and supporting hazardous goods such as lithium batteries impose stricter standards on transit timeliness, safety assurance and professional handling capabilities.
Beyond generating new cargo volumes, AI has partially redirected global merchandise trade flows. "Southeast Asia has evolved into an increasingly vital cargo market. As numerous high-tech premium goods are manufactured in China and Southeast Asia, trade volumes between the two regions have expanded drastically," Vince Tse explained. To adapt to this trend, Cathay Cargo has continuously optimized its Southeast Asian footprint: following the launch of Hong Kong-Bangkok cargo flights in May this year, wide-body freighter aircraft will be deployed on this route in August to expand transport capacity for Malaysia, Vietnam and other Southeast Asian markets.
Leveraging Technology to Address Shifting Market Demands
AI has also triggered internal transformations within air freight carriers.
With surging volumes of high-value, time-critical shipments entering air logistics networks, clients now prioritize safe, stable, transparent and traceable transit on top of fast delivery. Digital transformation and AI deployment are no longer mere efficiency tools, but core competitive advantages for air cargo operators.
"We ship extensive AI hardware, while also being heavy AI adopters," said Simon Wong, Service General Manager of Cathay Cargo, at the Air Cargo Asia 2026 exhibition held this June. The carrier has assembled a dedicated AI and digital team of over 30 staff to advance relevant strategic planning and technological rollout.
First, customer service experience has been greatly upgraded, gradually aligning with air passenger service standards. On Cathay Cargo's Cargo Digital Hub platform, freight forwarders can independently complete online booking, and revise cargo weight and shipping details remotely. Adopting IATA's ONE Record data architecture, Cathay Cargo delivers enhanced cross-party data sharing and full-lifecycle cargo visibility, covering shipment status and customs clearance progress.
"This capability proves indispensable for high-value goods shipments. Electronics, pharmaceuticals, fresh produce and other temperature-controlled cargo have rigid transit requirements; any operational error may lead to total cargo loss," Vince Tse elaborated. For pharmaceutical cold-chain goods requiring consistent low-temperature transit, Cathay Cargo has developed proprietary digital monitoring tools to track temperature fluctuations throughout shipping. Real-time data analytics enable early intervention against temperature anomalies to guarantee cargo arrives at destinations in optimal condition.
Operational efficiency at cargo terminals has also seen notable improvements.
Previously, cargo terminal staff relied on phone calls and paper documents for repeated cross-department communication upon cargo arrival. Now, the mobile Cargo Connect platform equips frontline teams with real-time access to cargo specifications, handling instructions, flight schedules and delivery workflows. Synchronized mobile data updates streamline terminal ground operations and cut human errors.
AI additionally serves as a reliable safety assistant. Air cargo operations involve intricate hazardous goods transport regulations, special cargo handling protocols and complex workflows that cannot be fully memorized manually. Cathay Cargo staff leverage AI tools to instantly retrieve shipping rules, operational standards and precautionary measures, boosting professional handling efficiency. Rising lithium battery shipment volumes have introduced new safety risks; to safeguard transit security, Cathay Cargo has deployed AI-powered intelligent X-ray scanning technology at its Hong Kong cargo terminal. The integrated AI-X-ray identification system accelerates detection of high-risk cargo and elevates overall air transport safety standards.
The Arrival of Specialized Pricing Era
Booming market activity and diversified client demands have revitalized the air cargo industry while imposing stricter operational requirements.
In May this year, Cathay Cargo handled over 150,000 tons of cargo, marking an 11% year-on-year increase; cumulative tonnage for the first five months rose 8% year-on-year. Shipments covered by nine specialized logistics solutions - including hazardous goods, live animal, urgent parcel, pharmaceutical and special commodity transport - account for a steadily growing share of total cargo volume.
"These nine specialized solutions demand rigorous professional support and advanced technical infrastructure," Vince Tse further explained. For pharmaceutical logistics, the Cathay PharmaCare solution features dedicated handling facilities, temperature-controlled containers and round-the-clock real-time tracking at the Hong Kong terminal to maintain constant required temperatures throughout transit. For fresh produce, the Cathay FreshCare solution leverages Hong Kong's status as an international air cargo hub to enable fast cargo transshipment via seamless data sharing, paired with temperature-controlled warehouses and refrigerated trucks to minimize product wastage.
Cutting-edge technologies such as digitalization and artificial intelligence are reshaping air cargo planning, management and delivery models. Multiple industry insiders at CISCE agreed that deep adoption of innovative technologies will strengthen the resilience of global industrial and supply chains.
For air freight carriers, AI-driven growth brings far more than increased cargo volumes - it reshapes the fundamental rules of market competition. The industry is undergoing an accelerated transition from pure transport service providers to comprehensive supply chain solution partners, shifting focus from single cargo shipments to end-to-end industrial chain support. The integration of AI, digital technologies and specialized logistics services has only just begun to unlock transformative changes across the air cargo sector.