Asia-Pacific airlines recorded 8.4% year-on-year demand growth for air cargo in 2025. This was the highest among all regions. At the same time, IATA expects global growth to slow slightly to 2.6% in 2026 . Southeast Asia is becoming the most active region for air cargo. Growth numbers show a clear shift in global trade patterns.Within this broader trend, Southeast Asia stands out. The region is expanding faster than others due to strong e-commerce demand, manufacturing shifts away from China, and rising consumption. Countries such as Vietnam, Indonesia, and the Philippines are leading this change. The region’s e-commerce market reached US$157.6 billion in 2025, nearly three times its value in 2020. This growth is not just about volumes. It is changing how airlines approach airline cargo shipping, digital operations, and cross-border ecommerce solutions. For airlines and logistics providers, Southeast Asia is now a key market that requires new strategies and technology.
What is driving air cargo growth in Southeast Asia in 2026?
Several structural changes are shaping demand across the region. Trade flows are shifting, and supply chains are becoming more distributed. At the same time, digital commerce is increasing shipment frequency and speed requirements.
E-commerce boom: Why airlines need ecommerce shipping solutions to keep up
E-commerce continues to drive demand across the region. Vietnam’s e-commerce market crossed US$25 billion in 2024 and is expected to reach US$28 billion in 2025. Indonesia is growing even faster, with its market projected to rise from USD 90.35 billion in 2025 to USD 104.21 billion in 2026 . It is expected to more than double by 2031.
The Philippines is also seeing strong expansion. Its market stands at USD 17.65 billion in 2025 and is forecast to reach USD 33.65 billion by 2030 . Growth rates of around 25% each year show how quickly demand is increasing.
For airlines, this creates pressure on operations. High shipment volumes, smaller parcel sizes, and faster delivery expectations are becoming standard. Traditional cargo processes are no longer enough. Airlines now need advanced ecommerce shipping solutions to manage booking, tracking, and fulfilment more efficiently.
Digital platforms also help airlines connect with freight forwarders and e-commerce players in real time. This improves visibility and allows better planning across the cargo network. As e-commerce grows, the ability to scale quickly becomes critical.
China+1 manufacturing shift and new freight origins
Manufacturing diversification is another key factor. Many companies are moving production away from China to reduce risk. This has led to increased exports from countries such as Vietnam, Thailand, and Malaysia.Their combined share of North American imports grew from 10% in 2017 to 17% in 2023 . This shift is already visible in air cargo flows. For example, air cargo volumes from Vietnam to the United States grew by around 93% between April and July 2025 . This resulted in an additional 610 widebody freighter flights in just four months.
Products such as electronics and clothing are driving this demand. As new manufacturing hubs develop, airlines must adapt their networks. This includes adding new routes and improving connections between secondary cities and global markets.This trend also increases the need for flexible airline cargo shipping models that can respond to changing trade lanes.
Which Southeast Asian markets are growing fastest?
Trade flows between Southeast Asia and the United States are growing rapidly. Air cargo tonnage increased by 42% year-on-year in November 2025 . Overall volumes from the region to the US are up 27% for the year. In contrast, flows from China and Hong Kong to the US declined by 8%.
Demand from Southeast Asia to North America rose by 50% in the first seven months of 2025. Growth reached 68% in July alone. These numbers highlight how quickly the region is gaining importance in global logistics.
Vietnam is one of the strongest performers. Its air freight sector is expected to grow at a CAGR of 7.98% between 2026 and 2031 . This is supported by near-shoring trends and continued e-commerce expansion.
Country snapshot: Vietnam, Indonesia, Philippines, Thailand, cargo volume trends
Vietnam is leading export-driven growth, especially in electronics and apparel. Indonesia is driven by domestic consumption and cross-border e-commerce flows. The Philippines is expanding due to digital adoption and strong consumer demand. Thailand remains an important logistics hub, supported by its central location and established infrastructure. Each market has a different growth driver, but all contribute to the overall Southeast Asia air cargo growth in 2026.
Key airports and new cargo terminal investments
Airports across the region are expanding capacity. Investments in cargo terminals are increasing to handle higher volumes. Vietnam and Indonesia are focusing on upgrading infrastructure, while Thailand and Singapore continue to strengthen their positions as regional hubs. These developments are important for improving efficiency and reducing congestion. However, infrastructure growth still needs to keep pace with demand.
How are airlines capitalising on the opportunity through airline cargo shipping?
Airlines in Southeast Asia are adjusting their strategies to capture this growth. Low-cost carriers play a major role in the region. In 2025, around two-thirds of international seats were operated by these carriers. This is much higher than the global average. Airlines are also expanding passenger networks, which increases belly hold cargo capacity. Cebu Pacific carried 27 million passengers in 2025 and aims to reach 30 million in 2026 . This growth supports higher cargo volumes.
Vietnam Airlines is taking a different approach. It plans to launch a dedicated cargo airline by 2026 . It has also strengthened partnerships with global carriers such as Korean Air to improve cargo operations.
LCC expansion: Cebu Pacific, VietJet, AirAsia cargo strategies
Low-cost carriers are focusing on efficiency and frequency. Airlines like Cebu Pacific, VietJet, and AirAsia are using their networks to support cargo movement. High-frequency routes allow faster movement of goods across the region. They are also investing in digital tools to manage cargo bookings and tracking. This improves service levels and supports growing demand.
Belly hold utilisation on high-frequency intra-Asia routes
Belly hold capacity remains a key part of airline cargo shipping in Southeast Asia. Frequent flights between major cities allow airlines to move goods quickly. This is especially useful for e-commerce shipments that require short transit times. Better use of existing capacity helps airlines increase revenue without adding new aircraft.
What infrastructure gaps still limit the region?
Despite strong growth, challenges remain. Air freight is expected to grow at a CAGR of 7.29% between 2026 and 2031 in the ASEAN region . However, road freight still holds the largest share of the market. E-commerce demand is putting pressure on existing infrastructure. Countries such as Vietnam, Singapore, the Philippines, and Indonesia are facing cargo backlogs and congestion. Some trade lanes, especially between Thailand and North America, remain tight.
Cross-border customs clearance challenges
Customs processes vary across countries. This creates delays in cross-border shipments. Manual documentation and a lack of standardisation slow down operations. Airlines need digital systems that can simplify compliance and improve clearance times. Faster processing is essential for time-sensitive shipments.
Last-mile ecommerce delivery gaps and cold chain limitations
Last-mile delivery is another challenge. Many areas lack efficient distribution networks. This affects delivery speed and reliability. Cold chain infrastructure is also limited in some markets. This creates risks for sensitive goods such as pharmaceuticals and perishables. Addressing these gaps is important for long-term growth.
How SmartKargo helps airlines capture cross-border ecommerce solutions in SEA
SmartKargo provides a digital platform designed for modern air cargo operations. It helps airlines manage bookings, pricing, and capacity in one system. This is especially useful for handling e-commerce shipments. The platform supports cross-border ecommerce solutions by connecting airlines with freight forwarders, logistics providers, and digital marketplaces. This improves coordination across the supply chain. SmartKargo also offers real-time visibility. Airlines can track shipments and manage disruptions more effectively. Automated processes reduce manual work and improve accuracy.
For airlines operating in Southeast Asia, this technology helps manage high shipment volumes and complex trade routes. It also supports faster ecommerce delivery by improving planning and execution. As Southeast Asia continues to grow, digital platforms like SmartKargo play a key role in helping airlines scale operations and stay competitive.
FAQs
Q. How is e-commerce influencing air cargo services in Southeast Asia?
A. E-commerce is increasing shipment volumes and delivery speed expectations. Airlines need better systems to manage frequent, smaller shipments efficiently.
Q. Why is Southeast Asia becoming the fastest-growing air cargo market in 2026?
A. The region benefits from strong e-commerce growth, manufacturing shifts, and rising consumer demand. These factors are driving higher cargo volumes.
Q. Which Southeast Asian countries are leading air cargo growth?
A. Vietnam, Indonesia, and the Philippines are leading the growth due to exports, digital adoption, and expanding consumer markets.
Q. How does SmartKargo support airlines with cross-border e-commerce solutions in Southeast Asia?
A. SmartKargo provides digital tools for booking, tracking, and managing cargo. It helps airlines handle high volumes and improve efficiency.
Q. What role does e-commerce play in driving demand for air cargo services in Southeast Asia?
A. E-commerce creates a consistent demand for fast and reliable shipping. It is a major driver of air cargo growth across the region.
