Expeditors Posts Record Airfreight Tonnage as AI Hardware Reshapes Cargo

Expeditors reported record third-quarter airfreight tonnage, up roughly 13% year on year, with hyperscaler demand cited as a significant driver of the growth. Group revenue climbed 42% to $4.1bn, while net earnings rose 55% to $345m. In a market where luck and skill are hard to separate, Dan Wall's forwarder is currently enjoying both.

The company noted that demand extended beyond finished servers into shipments from Tier 1 and Tier 2 suppliers supporting AI infrastructure — the wider manufacturing supply chain, in other words, not merely the finished article. "Air capacity remains constrained by limited fleet expansion and new aircraft delivery delays," it said, adding that demand continued to outpace available capacity, keeping rates elevated.

What do the rate indices show?

The TAC Index update offers a more mixed picture across tradelanes. Its global Baltic Air Freight Index slipped 1.1% in the week to 2 November, yet remained 22.8% above the level of a year earlier. China-US rates continued to rise strongly, rates from Taiwan also increased, and rates from Vietnam eased slightly.

How are airports and carriers responding?

The operational realities behind the boom were on display at TIACA's Air Cargo Forum in Miami last week. Changi Airport said much of its cargo growth this year came from semiconductors and AI-related infrastructure, with throughput reaching approximately 1.66m tonnes in the first nine months, up 8.5% year on year.

Jaisey Yip, the airport group's cargo business division VP, said capturing that business required more than flight connections. "Not only are the shipments high-value, they are time-critical, and also shock- and vibration-sensitive," she said, adding that production equipment could also be outsized and require main-deck freighter capacity. Changi's partner SATS has trialled and introduced a suspension-enabled pallet dolly to reduce shock, vibration and tilt during airside transfers — a reminder that in this trade, even the short run between warehouse and aircraft can damage a multi-million-dollar payload.

Ms Yip said Changi was positioning itself "not only to facilitate our key exports, but also to facilitate hi-tech trades around the region to the rest of the world".

Emirates SkyCargo yesterday launched AI Tech, a dedicated product covering server racks, semiconductors, GPUs, capital equipment and other AI hardware. The product combines priority loading, standardised handling procedures and shipment monitoring through the carrier's Dubai command centre, with expert project cargo support for oversized and heavy shipments. Highly specialised manufacturing equipment will require advance assessments of station capabilities.

"In July alone, we transported more than 700 tonnes of AI infrastructure across our global network, and demand has continued to grow," said divisional SVP Badr Abbas. Emirates noted that tall, dense server racks often weigh more than 3.5 tonnes, underlining the importance of main-deck capacity alongside the passenger belly network.

Where does the freight actually flow?

Atlas Air's Martin Drew described a two-stage supply chain: components flown from Asian manufacturing centres to assembly locations, including Guadalajara in Mexico, before completed server racks are distributed worldwide. "You've got semiconductors, chips, motherboards, and GPUs coming predominantly out of Asia into places such as Guadalajara in Mexico, where factories assemble these server racks. Then the server racks are sent all over the world," he told The Loadstar.

The destination market extends well beyond the United States. Avianca Cargo CEO Diogo Elias said the airline moves server racks from Miami into South American markets including Brazil, Uruguay, Paraguay and Chile. The equipment typically stands around 90 inches (228.6cm) tall, which makes freighter main decks essential for those shipments.

What happens when the build-out ends?

The industry is already asking the awkward question. Mr Drew said rapid technological development supported recurring replacement business: "The technology is evolving so quickly. We hear anything from 18 months to three years, when that server rack becomes effectively obsolete and needs to be replaced."

LATAM Cargo group CEO Andrés Bianchi, whose airline also carries AI-related cargo, raised a sharper version of the doubt. "What happens when the data centre is built, and what you're going to replace is not the rack itself, but the processor?" he asked. "Are you going to send racks again?"

For airlines planning capacity around today's demand, continued AI spending will not necessarily produce the same mix of bulky racks, components and manufacturing equipment. "This is a big opportunity today," said Mr Bianchi. "But you've got to think about what is the opportunity for the future, and how that can translate into other areas of the business." The industry's current challenge is working out whether it is investing in a durable trade or an exceptionally heavy fad.