ABSTRACT
This chapter looks at the demand side of air cargo by assessing its segregation by commodity type, volume and weight as well as transport urgency. It deals with a review of the competition between air freight and surface modes of transport, including trends for modal shifts. As air cargo is generally charged based on shipment weight, the final market price of commodities with a high value in relation to their weight is less impacted by transportation costs. The demand for air freight services therefore depends on the underlying demand for goods requiring rapid transportation as well as on the cost and benefits of air cargo compared to alternative modes of transport. The chapter analyses the intercontinental commodity flows between the world's main regions. A. Zhang and Y. Zhang note that 'cargo tends to move from manufacturing to distribution centers, or from production to consumption centers', driven by the economic activity in the importing region.
