The construction boom of data centers boosts demand for air cargo transportation.

The bulky server racks and wafer-thin semiconductors needed for the construction of artificial intelligence infrastructure are taking up space on cargo planes that was previously used for transporting low-cost clothing and various small goods parcels. To expedite the rapid construction of data centers across the United States, companies are paying high shipping fees to airfreight supplies from Asia, rather than waiting for slower and cheaper sea freight. This demand is driving up air cargo volumes, while higher tariffs in the United States are eroding the market for cheap e-commerce parcels that have filled the freight network in recent years. "The air cargo market seems to be on the rise against the trend," said Niall van de Wouw, Chief Air Cargo Officer at logistics analysis company Xeneta, "Currently, the biggest growth engine is anything related to AI." Data from the International Air Transport Association shows that air cargo volumes from Asia to North America in May increased by nearly 20% compared to the same period last year, while global freight volumes overall grew by 6%. Data from the U.S. Department of Commerce shows that U.S. merchandise imports in May increased to $317 billion, up 15% from the same period last year, due to increased imports of semiconductors and computer components related to AI construction. "The key driver is that all parties are racing against time to bring new computing power online," said Rohit Sharma, global head of cloud infrastructure and semiconductors at freight forwarding company Kuehne + Nagel International. Due to increased demand and higher aviation fuel prices due to the Iran conflict, freight rates have risen during what is typically a slow season for air cargo. Xeneta's data shows that in June, average spot rates for air cargo from the Asia Pacific region to North America were 36% higher than the same period last year.