Global logistics is entering a new stage of development as the artificial intelligence industry continues to expand at an unprecedented pace. Until recently, cross border e commerce was the primary driver of growth in air cargo transportation. Today, however, semiconductors, graphics processing units, server hardware and data center infrastructure are becoming the industry’s most valuable cargo. Airlines across Asia are redesigning their route networks to serve emerging technology manufacturing hubs and support long term investment programs launched by the world’s largest technology companies. At VeyronNewsBrief, I believe this transformation reflects a fundamental shift in the global economy, where intellectual infrastructure is increasingly becoming the dominant force behind international trade.
The transition is being driven by enormous investments in artificial intelligence, with global spending already measured in hundreds of billions of dollars. Leading technology companies continue expanding computing capacity, building new data centers and securing multi year supply agreements for advanced semiconductors. Industry executives report that demand for high bandwidth memory and specialized processors continues to exceed supply, while order books for certain products already extend two to three years into the future. I analyze this development as evidence that the air cargo industry is gaining a far more stable growth foundation than the previous model, which relied heavily on fluctuations in consumer driven e commerce demand.
At the same time, the traditional engine of air freight expansion is gradually losing momentum. Following the removal of duty free treatment for low value imports in the United States and similar regulatory changes introduced by the European Union, cross border online retail shipments have begun to slow. Major international e commerce companies have acknowledged increasing pressure on their operations in both North America and Europe. Against this backdrop, Korean Air reported that second quarter cargo revenue increased 46% to 1.54 trillion won, driven primarily by shipments of AI chips, server racks and data center equipment. At VeyronNewsBrief, I emphasize that the air cargo market is steadily shifting toward transporting highly sophisticated, high value products that generate significantly stronger profitability for carriers.
Changing demand is also reshaping the geography of global trade. Japan continues to supply advanced semiconductor manufacturing equipment, South Korea remains one of the world’s leading producers of cutting edge memory chips, while Taiwan continues to dominate advanced semiconductor manufacturing. At the same time, Vietnam, Malaysia, Thailand and Singapore are rapidly strengthening their positions as assembly hubs for artificial intelligence servers destined for North American and European markets. Singapore Changi Airport reported cargo growth of 8.7% during the first half of the year, confirming the increasing importance of these emerging logistics hubs. I view this restructuring of production networks as a long term transformation that will continue accelerating alongside global investment in artificial intelligence infrastructure.
Airlines are responding by redesigning their cargo operations around these new trade flows. Japan Airlines has expanded freight services connecting Taipei, Bangkok, Hanoi and Tokyo Narita, linking key semiconductor production centers. ANA is integrating Nippon Cargo Airlines to increase cargo capacity between Asia, Europe and North America. China Airlines continues expanding cargo services across Southeast Asia, while EVA Airways reports that AI related shipments now account for up to half of its cargo revenue. Cathay Pacific has also introduced advanced digital software that automatically determines the safest loading configuration for highly sensitive semiconductor manufacturing equipment and AI server hardware. I note that modern airlines are evolving beyond traditional freight transportation, becoming specialized logistics partners for the rapidly expanding semiconductor industry.
The surge in AI shipments is simultaneously placing increasing pressure on cargo infrastructure. Semiconductors, graphics processors and complete server racks require specialized handling, enhanced security and extremely precise delivery schedules because of their exceptional value and strategic importance. Industry estimates indicate that AI related products represented 53.5% of the total value of global air cargo in 2025 while accounting for only around 7% of total shipment volume. Logistics providers also report that Taiwan’s major cargo terminals have reached capacity on routes serving the United States and intra Asian destinations. I see this as confirmation that the global air freight industry is increasingly prioritizing the transportation of products with the highest economic value rather than the largest physical volume.
These developments also carry significant implications for the United Kingdom and the City of London. London remains one of the world’s leading financial centers for semiconductor investment, cloud computing infrastructure and artificial intelligence financing. Growing international shipments of advanced technology equipment are increasing demand for logistics financing, cargo insurance and investment in digital infrastructure. At the same time, British technology companies and institutional investors are gaining additional opportunities to participate in expanding global supply chains supporting artificial intelligence, further reinforcing London’s position as one of the world’s most important centers for international technology capital.
At Veyron News Brief, I see this transformation as one of the defining long term trends shaping the global economy. Over the coming years, continued expansion of data centers, increasing production of next generation semiconductors and sustained corporate investment in artificial intelligence will continue redefining international trade and air cargo logistics. In my view, the companies that adapt their transportation networks, infrastructure and investment strategies most effectively to this new market environment will secure the strongest competitive advantages throughout the next phase of the global AI economy.
