Southeast Asia's Air Cargo in 2025: Navigating Growth Amid Global Uncertainties

Southeast Asia: A Rising Air Cargo Powerhouse

Southeast Asia's strategic location and burgeoning economies position it as a critical player in global air cargo. According to Mordor Intelligence, the region's logistics market is projected to reach USD 478 billion by 2030, driven by intra-regional trade, manufacturing growth, and a booming e-commerce sector expected to hit USD 280 billion by 2027.

Countries like Vietnam, Malaysia, and Indonesia are investing heavily in airport infrastructure to accommodate increasing cargo volumes. For instance, Vietnam's Long Thanh International Airport, upon completion, is expected to handle over 5 million tonnes of cargo annually, enhancing the country's air freight capacity significantly.

Digital Transformation and Sustainability: Twin Pillars of Growth

The integration of digital technologies is revolutionizing air cargo operations in Southeast Asia. Artificial intelligence (AI) and automation are streamlining processes, from predictive analytics for demand forecasting to real-time cargo tracking, enhancing efficiency and reducing costs.

Simultaneously, sustainability has become a focal point. Airlines and logistics providers are adopting green initiatives, such as utilizing Sustainable Aviation Fuel (SAF) and implementing carbon offset programs, aligning with global efforts to reduce the environmental impact of air freight.

"Southeast Asia's logistics market is expanding at an unprecedented pace. tlacSEA 2025 will not only facilitate business opportunities but also drive critical conversations on resilience, digitalization, and sustainable growth."
— Michael Wilton, CEO & Managing Director, MMI Asia Pte Ltd

Navigating Global Challenges

Despite regional advancements, Southeast Asia's air cargo sector faces challenges stemming from global economic uncertainties. Trade tensions, such as the U.S. elimination of the "de minimis" provision for low-value parcels from China, have disrupted traditional air freight routes, impacting cargo volumes and operational strategies.

Moreover, fluctuating fuel prices and supply chain disruptions continue to pose risks. Airlines are adapting by diversifying routes, investing in fuel-efficient aircraft, and exploring alternative markets to mitigate these challenges.

• Projected logistics market value in Southeast Asia by 2030: USD 478 billion
• Expected e-commerce market value in Southeast Asia by 2027: USD 280 billion
• Anticipated cargo handling capacity of Long Thanh International Airport upon completion: Over 5 million tonnes annually
• Impact of U.S. policy changes on air cargo routes from China: Significant disruptions leading to route adjustments

Collaborative Efforts and Future Outlook

Regional collaboration is key to navigating the complexities of the global air cargo landscape. Initiatives like the ASEAN Single Aviation Market aim to liberalize air services, fostering greater connectivity and efficiency across member states.

Looking ahead, Southeast Asia's air cargo sector is poised for continued growth, underpinned by technological innovation, sustainable practices, and strategic partnerships. Events like Transport Logistic and Air Cargo Southeast Asia 2025 will play a crucial role in shaping the future, providing a platform for stakeholders to exchange ideas, forge alliances, and drive the industry forward.

Southeast Asia's air cargo industry in 2025 exemplifies resilience and adaptability amid global uncertainties. Through digital transformation, sustainable initiatives, and regional cooperation, the sector is not only overcoming challenges but also setting the stage for a robust and dynamic future. As the region continues to evolve, its role in the global air freight landscape will undoubtedly become increasingly significant.

By Van Tam