Procurement Market Intelligence Report
International Air Cargo Transportation Services
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International Air Cargo Transportation Services Global Overview
Definition
Summary
This report is intended to assist buyers of scheduled international air cargo transportation services. Air cargo transportation, also known as air freight transportation, involves moving parcels, letters, and perishable goods on regularly scheduled routes that either originate or end internationally. Buyers of this service are also referred to as shippers, whereas suppliers, typically cargo airlines, are referred to as carriers. Key buyers include electronics manufacturers, agricultural sectors, pharmaceutical and chemical manufacturers, consumers, and medical device manufacturers.
This Report Includes:
- International Air Freight
- International Air Express
- International Airmail
Not in this Report:
- Passenger Air Transportation Services
- Nonscheduled Air Transportation Services
Global International Air Cargo Transportation Services Procurement Trends
Discover the top international trends affecting procurement in the global International Air Cargo Transportation Services market.
Neutral
Crude oil prices dip, but natural gas and fuel prices remain volatile in 2025
- Oil prices have been falling with the introduction of higher tariffs and the predicted decline in global demand. The OPEC+ group of countries also announced they would be unwinding production cuts and increasing their collective output target for May by 411,000 barrels per day.
- Trade wars, ongoing conflict between Hamas and Israel, and general unrest in the Middle East are causing uncertainty surrounding oil prices, which has led to volatility in prices. In the third week of May 2025, crude oil prices hit $63.67 per barrel, but volatility remains as geopolitical concerns remain.
- Natural gas prices rallied early in 2025 with colder-than-usual temperatures in the United States and high demand, topping out at $4.68/MMBtu in March. Prices have since fallen with the onset of trade wars and weakening demand projections to $3.64/MMBtu in the third week of May 2025.
- The national average of gasoline prices has been rising slightly due to refinery maintenance/outages and blending issues, hitting a national average of $3.15 per gallon in the third week of May 2025. However, gasoline futures have been volatile, falling due to fears of oversupply and deepening concerns about weakening demand with tariffs, but rising after trade deals.
Global International Air Cargo Transportation Services Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 United States | 85 |
| #2 China | 70 |
| #3 Europe | 40 |
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Geography Drilldown - US & Europe
Average Cost of International Air Cargo Transportation Services
United States
2026 Market Pricing$0.50 to $XX.XX
per kilogramEurope
Average Price
Prices in the International Air Cargo Transportation Services market range from $0.50 to $XX.XX, depending on Route, Priority Level, Shipment Volume and Shipment Type. For example, lower prices are associated with Popular route ($2.96 to $9.50 per kilogram), whereas higher prices are associated with Unpopular route ($5.50 to $12.75 per kilogram).
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International Air Cargo Transportation Services Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the International Air Cargo Transportation Services market, prices in the US have declined -3.5% from 2022 to 2025. Meanwhile, the recent three-year CAGR for Europe is +0.0%.
United States (2022-2025)
Europe (2022-2025)
Compound Annual Growth Rate
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Cost Analysis - Total Cost of Ownership for International Air Cargo Transportation Services
Total cost of ownership is Medium in the International Air Cargo Transportation Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Delays may raise the total cost of ownership unexpectedly.
Negotiated Before
Pre-evaluation
Billed During
Fuel
Security
Compliance
Handling
Storage
Unforeseen
Delays
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to 0.0 in the United States. Buyer power is most positively impacted by Market Share Concentration. It is most negatively impacted by Recent Price Trend. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Europe
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Supply Chain Risk
The average level of supply chain risk is assessed as High, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Aircraft, Engine & Parts Manufacturers
- Gasoline & Petroleum Wholesalers
- Airports
2nd
Tier Suppliers
- Machine Shops
- Aluminum Manufacturers
- Gasoline & Petroleum Bulk Stations
- Municipal Governments
Biggest International Air Cargo Transportation Services Suppliers in the US by Revenue
The largest International Air Cargo Transportation Services vendors by revenue in the US are Singapore Airlines, Korean Air Lines Co. Ltd. and American Airlines Group Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| United Parcel Service, Inc. | International | ATLANTA, GA | >10,000 | 10-15 | ||||
| Korean Air Lines Co. Ltd. | Global | Seoul, KR | >10,001 | 15-20 | ||||
| Singapore Airlines | Global | Singapore, SG | >10,001 | 25+ | ||||
| FedEx Corporation | International | MEMPHIS, TN | >10,000 | 5-10 | ||||
| Deutsche Post Ag | Global | Bonn, DE | >10,001 | 5-10 | ||||
| Delta Air Lines, Inc. | Global | ATLANTA, GA | >10,000 | 5-10 | ||||
| American Airlines Group Inc. | Global | FORT WORTH, TX | >10,000 | 5-10 | ||||
| Cathay Pacific Airways Ltd. | Global | Hong Kong, CN | >10,001 | < 5 | ||||
| United Airlines Holdings, Inc. | Global | CHICAGO, IL | >10,000 | < 5 | ||||
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Profit Analysis
The average profit margin across vendors in the International Air Cargo Transportation Services market is 9.0% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Overhead. The cost trend for this component is stagnating, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
The market is characterized by high supply chain risk due to the influence of gasoline and petroleum wholesalers and bulk stations. These operators are subject to constant demand and supply fluctuations, tempering profitability and operational stability.
Average vendor risk in this market is high, primarily due to inherent supply chain risk stemming from jet fuel's derivation from crude oil and the low average profit margin, making it more challenging for carriers to weather financial distress.
In the international air cargo transportation services market, there is a very high concentration of market share and significant pricing power among the top carriers, thus hindering buyers' negotiation prospects.
The United States is a net exporter of jet fuel due to its robust oil and gas sector, access to natural resources, and petroleum refining capabilities. This limits competition in the market, making buyers more susceptible to price fluctuations from providers.
Supplier Information
United Parcel Service, Inc.
United Parcel Service, Inc. is a public company operating internationally in the manufacturing, information and professional, scientific and technical services sectors. The company's offerings include business card printing, mailing software, 3d printing & rapid prototyping services, letter & parcel delivery... Subscribe to learn more
Korean Air Lines Co. Ltd.
Korean Air Lines Co. Ltd. is a public company operating globally. The company's offerings include international air cargo transportation services. Founded in 2013, the company is currently headquartered in Seoul, South Korea with an estimated employee count of over 10,000. Subscribe to learn more
Singapore Airlines
Singapore Airlines is a public company operating globally. The company's offerings include international air cargo transportation services. Founded in 1972, the company is currently headquartered in Singapore, Singapore with an estimated employee count of over 10,000. Subscribe to learn more
American Airlines Group Inc.
American Airlines Group Inc. is a public company operating globally. The company's offerings include domestic air cargo transportation services, international air cargo transportation services, international air travel and domestic air travel. Founded in 2013, the company is currently headquartered in FORT... Subscribe to learn more
Delta Air Lines, Inc.
Delta Air Lines, Inc. is a public company operating globally. The company's offerings include domestic air cargo transportation services, international air cargo transportation services, international air travel, domestic air travel and aircraft charter services. Founded in 1925, the company is currently Subscribe to learn more
Deutsche Post Ag
Deutsche Post Ag is a public company operating globally in the professional, scientific & technical services sector. The company's offerings include letter & parcel delivery services, same-day last-mile delivery services, international air cargo transportation services, material handling services, general... Subscribe to learn more
FedEx Corporation
FedEx Corporation is a public company operating internationally in the manufacturing, manufacturing, professional, scientific and technical services and administration, business support and waste management services sectors. The company's offerings include business card printing, banners, letter & parcel Subscribe to learn more
Cathay Pacific Airways Ltd.
Cathay Pacific Airways Ltd. is a public company operating globally. The company's offerings include international air cargo transportation services. Founded in 2013, the company is currently headquartered in Hong Kong, China with an estimated employee count of over 10,000. Subscribe to learn more
Emirates Group
Emirates is a private company operating . The company's offerings include international air cargo transportation services. Founded in 2013, the company is currently headquartered in United States of America. Subscribe to learn more
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Procurement Management KPIs for the International Air Cargo Transportation Services Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Order Value and Average Resolution Time. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Accuracy and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Order Value |
|
Total revenue Number of orders |
The average order value, or average shipment value, represents the amount of revenue a carrier generates from the average shipment. The average shipment value can be used to determine the extent to which customers trust a carrier to deliver shipments in full and on time. |
| Average Resolution Time |
|
Total resolution time Number of resolved tickets |
The average resolution time represents the average amount of time it takes to resolve a support ticket or query. With supply chain issues, it is important to know the average resolution time for suppliers that have experienced any disruptions in transportation. |
|
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Insurance
How will you restrict knowledge of my shipment's identity to only those that need to know?
Will you negotiate a contingent liability or increased value contract that covers the average value per kilogram of my shipment?
Surcharges
How do you determine your surcharge rates, and can you make your surcharges completely transparent to me?
How does your security surcharge improve the security of my shipment?
Customer Support
How do I receive real-time updates on my cargo's location and status?
How quickly will I be contacted if my shipment is lost or damaged?
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International Air Cargo Transportation Services RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should give an overview of their organization, including the industry in which they operate, the number of locations and employees, and the countries in which they operate.
Buyers should include a brief description of why they require international air cargo transportation.
Statement Of Need
Buyers should stipulate their contract period, including options to extend the period.
Buyers should describe the type or types of cargo they expect to handle, and whether any cargo that they ship is considered specialized (e.g. hazardous materials, temperature-sensitive).
Project Budget
Buyers should specify the maximum fixed or per-unit amount that they are willing to pay for the defined contract period.
Buyers should request a detailed breakdown of how prices are calculated for transportation to the various regions or zones in which they require services.
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- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
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