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ETIHAD CARGO EYES FURTHER ASIA EXPANSION
March 1, 2025
CREDIT: ETIHAD
Etihad Cargo is looking to further expand its footprint in Asia, citing growth in intra-Asia trade fueled by a surge in ecommerce and the region’s significant role as a major manufacturing and export hub.

Etihad Cargo is looking to further expand its footprint in Asia, citing growth in intra-Asia trade fueled by a surge in ecommerce and the region’s significant role as a major manufacturing and export hub.

 

In 2025, Etihad plans to expand its bellyhold capacity in Asia with new flights to Hong Kong and Taipei, aiming to enhance both regional and global connectivity.

 

Currently, Etihad Cargo operates seven dedicated freighter flights per week to Shanghai, two to Guangzhou and six to Hong Kong. It also provides bellyhold cargo capacity through seven weekly passenger flights to Beijing and Shanghai, and the cargo carrier has partnered with SF Airlines to further support China’s export market, offering five joint freighters to Ezhou Huahu International Airport in Hubei province and one weekly service to Shenzhen.

 

Jacqueline Han, Etihad Cargo’s regional director for Northeastern Asia, told Asia Cargo News that ecommerce has been a significant driver for these expansions.

 

In 2024, Etihad Cargo witnessed “significant growth” in ecommerce volumes, driven by sustained global consumer demand and the increasing adoption of digital retail and direct-to-consumer business models. Compared to prior years, last year also saw a “marked acceleration” in cross-border shipments.

 

“Ecommerce plays a critical role in Etihad Cargo’s operations in Northeast Asia, as the region remains a global manufacturing hub for high-demand products such as electronics, fashion and consumer goods,” Han said, adding that these items are central to the fast-growing ecommerce market.

 

“At the same time, intra-Asia trade has surged, supported by rising consumer demand, an expanding middle class and growing demand for goods across countries like China, Japan and South Korea,” she further said. “The proliferation of ecommerce platforms across Asia has led to an increase in smaller, more frequent shipments.”

 

“Etihad Cargo is actively exploring opportunities to expand its network across Asia. As businesses diversify their manufacturing and sourcing strategies beyond traditional hubs like China, regions such as Southeast Asia and India are becoming increasingly important,” she added.

 

In addition to ecommerce, Etihad Cargo is also heavily invested in specialized product segments to cater to the growing demand for temperature-sensitive pharmaceutical shipments, including vaccines and biotech products and the reliable transport of high-value electronics.

 

“While ecommerce remains a vital growth driver, Etihad Cargo also prioritizes high-value sectors, including semiconductors and pharmaceuticals, to ensure balanced and sustainable growth,” Han told Asia Cargo News.

 

“Asia’s role as a hub for electronics manufacturing and the expanding healthcare sector underscores the potential for growth in these verticals,” she added, noting that Etihad Cargo’s ongoing investments in infrastructure and certifications, such as the International Air Transport Association’s (IATA) Center of Excellence for Independent Validators (CEIV) certifications for pharma and lithium batteries, position the carrier to support these high-demand sectors effectively.

 

Meanwhile, Etihad Cargo has also experienced robust growth in cargo volumes between Northeast Asia and markets such as the U.S. and Europe.

 

Han noted that this growth is driven by sustained global demand for electronics, fashion, and other goods, coupled with the rise of ecommerce requiring faster and more reliable logistics solutions.

 

“The global supply chain is still adapting to post-pandemic shifts, with companies looking to quickly meet demand in key markets, which has resulted in consistent cargo volumes on these long-haul routes,” she said. “We are committed to increasing capacity on key trade lanes while entering new markets to meet the growing demand for flexible and efficient logistics solutions.”

 

Han also pointed out several key trends that are shaping the air cargo market in the Asia-Pacific region, including disruptions in the Red Sea driving a shift from ocean freight to air cargo, particularly for industries like pharmaceuticals and high-tech manufacturing, “where delays are not an option.”

 

“Bellyhold capacity is gradually returning to pre-pandemic levels, but demand for air cargo often exceeds availability, leading to fluctuations in rates,” she said. The cool chain segment, especially for pharmaceuticals, has also seen a significant surge, with North Asia being a major player in the pharmaceutical and vaccine industries.

 

“Additionally, sustained growth in ecommerce demand, particularly from regions like China and Hong Kong, is anticipated,” she said. To meet this demand, the carrier is establishing dedicated charter solutions to leverage these developments.

 

Despite ongoing geopolitical tensions and increasing trade rebalancing, Etihad Cargo remains optimistic about the air cargo industry’s outlook, particularly in Asia. “The outlook for air cargo in Asia remains positive despite ongoing geopolitical uncertainties, including potential U.S.-China trade tensions and global political challenges,” Han said. “Asia’s role as a key manufacturing and export hub ensures air cargo remains essential to global supply chains.”

 

She noted that while geopolitical factors may cause short-term volatility, they also create opportunities for carriers such as Etihad Cargo to diversify trade routes and support the growing demand for high-value, time-sensitive goods.

 

Han told Asia Cargo News that the general air cargo industry will face a “dynamic landscape in 2025,” marked by both challenges and opportunities.

 

“Geopolitical tensions have disrupted global trade flows and created capacity challenges. Similarly, shifts in trade agreements and rising protectionist policies add complexity to logistics planning. However, these challenges have driven innovation and agility within the industry. The shift from ocean freight to air cargo, particularly for time-sensitive and high-value goods, has created opportunities for growth,” Han said.

 

To meet the growing demand for ecommerce and international trade, Etihad Cargo is expanding its freighter fleet. Han said the Etihad Cargo fleet will include seven new Airbus A350 freighters, with delivery expected from 2027 onwards, in addition to the existing five Boeing 777 freighters. Options for three more A350 freighters are also under consideration.

 

“This expansion will boost Etihad Cargo’s operational flexibility and capacity, ensuring we can continue to support the evolving needs of its customers across key global markets,” she added.

 

By Charlee C. Delavin

Asia Cargo News | Hong Kong