Reviving Air Cargo... 11% Increase in January Compared to Previous Year

Rebound from 3Q 2023... Impact of Increased 'Transshipment Cargo'
Benefiting from a Mediating Role Amid US-China Conflict

Incheon International Airport Cargo Terminal View (Photo by Incheon International Airport Corporation)

The air cargo performance at Incheon Airport is rebounding. This is due to an increase in transshipment cargo transported to third countries via Incheon Airport.

On the 7th, Incheon International Airport Corporation announced that the total air cargo volume last year was 2.744 million tons, a 6.8% decrease compared to the same period the previous year. However, on a quarterly basis, it has been rebounding since the third quarter of last year, maintaining an upward trend.

The third quarter recorded 698,000 tons, a 1.3% increase compared to the same period last year, followed by 703,000 tons in the fourth quarter, a 4.0% increase from the fourth quarter of the previous year. Cargo volume in January this year also rose 11.3% to 225,000 tons compared to January last year. The rebound trend appears to be expanding.

This seems to be due to a significant increase in 'transshipment cargo' transported to third countries via Incheon Airport. It is analyzed that Incheon Airport is functioning as an international logistics 'hub.' The 'transshipment rate,' a key indicator of airport hub status, also recorded its highest level in 10 years at 41.3%, since 42.9% in 2013.

By region, most areas saw a decrease, while China showed a slight increase compared to the previous year. Despite the ongoing lack of improvement in trade and political relations between the U.S. and China, Incheon Airport leveraged its geographical advantage to actively attract transshipment cargo originating from China.

By item, exports increased in flat panel displays (FPD), which have shifted their main production item to OLED, with export value reaching $10.84 billion (approximately 14.2937 trillion KRW), a 7.9% increase compared to the same period last year. It was the only item among the top five export categories to increase. Additionally, exports of aircraft and parts ($1.984 billion, +107.6%) and cosmetics ($1.97 billion, +11.9%) also increased.

Most import items decreased. The import value of semiconductors was $60.08 billion, down 14.2% from the previous year. Imports of semiconductor manufacturing equipment (-8.3%), wireless communication devices (-9.1%), pharmaceuticals and pesticides (-11.4%), and computers (-21.7%)?all among the top five items by volume?declined compared to the previous year.

Lee Hak-jae, President of Incheon International Airport Corporation, stated, "Despite the domestic economy being in a recession last year, we were able to achieve the highest transshipment rate ever by timely implementing a focused transshipment cargo attraction strategy targeting airlines, including cargo incentives and logistics volume marketing." He added, "Since various domestic and international variables and crises coexist this year as well, we will completely reorganize our air cargo hub growth strategy to build a stronger Incheon Airport that can withstand crises."

This content was produced with the assistance of AI translation services.