Global Air Freight Market

Global Air Freight Market Size, Share, Growth Analysis, By Type(Domestic Air Freight and International Air Freight), By End-User(Airport-To-Airport Service, and Door-To-Door Service) - Industry Forecast 2023-2030


Report ID: SQMIG20R2018 | Region: Global | Published Date: May, 2023 | Pages: 157 | Tables: 60 | Figures: 75

Global Air Freight Market Insights

Global Air Freight Market size was valued at USD 66.6 billion in 2021 and is poised to grow from USD 67.2 billion in 2022 to USD 133.47 billion by 2030, growing at a CAGR of 10.3% during the forecast period (2023-2030). Air freight has played a crucial role in meeting the growing global demand for trade in goods, driven by diverse supply chain dynamics such as long delivery times and expensive alternative modes of transport. The growth of the air cargo market has been facilitated by the improvement of air cargo routes in different countries, each with varying rates. Particularly noteworthy is the market's recovery and growth from pre-crisis volumes through the transportation of essential medical equipment, vaccines, and personal protective equipment (PPE). The significance of air freight extends beyond essential items, as it enables the timely delivery of non-perishable goods like jewelry, clothing, and auto parts, as well as perishable items such as fruits, vegetables, and meat. Moreover, the distribution of vaccines relies on a well-established temperature-sensitive system, incorporating state-of-the-art technologies and procedures. The thriving aviation industry further propels the market's expansion. Compared to other transportation modes like sea, rail, or road, air freight offers a substantial advantage in terms of time efficiency and security. Delivering cargo by plane minimizes delivery time, ensuring swift movement of goods. Additionally, air transport requires less packaging, reducing weight limits and improving cost-effectiveness. Consolidated air cargo services have gained popularity, positively influencing the market. In recent years, the global air freight market has demonstrated consistent growth, driven by factors such as expanding international trade, the proliferation of e-commerce, and the demand for time-sensitive shipments. Notable industry players include major airlines, freight forwarders, logistics companies, and integrators. The market is influenced by factors like fuel prices, capacity constraints, regulatory changes, and geopolitical considerations. Increasing emphasis on sustainable practices and the adoption of eco-friendly technologies reflect the industry's response to environmental concerns. The e-commerce sector has been a major driver of air freight growth, evidenced by a 27% increase in e-commerce air cargo demand in 2023 compared to the previous year.

Market snapshot

Global Market Size

USD 66.6 billion

Largest Segment

International Air Freight

Fastest Growth

International Air Freight

Growth Rate

10.3% CAGR

Global Air Freight Market ($ Bn)
Country Share for North America Region (%)
Global Air Freight Market Size By Type ($ Bn)
Global Air Freight Market Size By Type (%)

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Global Air Freight Market Segmental Analysis

Global Air Freight market is segmented by type, End-User, and region. Based on type, the market can be segmented into domestic air freight and international air freight. Based on End-User, the market is segmented into door-to-door service and airport-to-airport service. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Analysis by Type

By type, the market can be segmented into domestic air freight and international air freight. The international air freight segment dominated the market. International air freight involves the transportation of goods across borders, which is crucial for global trade. The rise in e-commerce, global supply chains, and the expansion of the manufacturing industry has increased the demand for international air freight services.

The domestic air freight segment is the fastest-growing segment in the market. Domestic air freight refers to the movement of goods within a country. The growth of the domestic air freight market is attributed to the increasing need for fast and reliable delivery of goods within the country. The rise in domestic e-commerce, the expansion of the retail industry, and the growth of the manufacturing sector have fueled the demand for domestic air freight services.

Analysis by End-User

By End-User, the market can be segmented into door-to-door service, and airport-to-airport service. Airport-to-airport service involves the transportation of goods from one airport to another, while door-to-door service involves the transportation of goods from the shipper's location to the consignee's location. The airport-to-airport service segment dominates the market due to its cost-effectiveness and efficiency in the transportation of goods over long distances. This segment is preferred by large organizations and businesses that need to transport goods in bulk.

However, the door-to-door service segment is the fastest-growing due to the increasing demand for fast and efficient delivery of goods to the end-user. This service is particularly popular in the e-commerce sector, where there is a growing need for timely delivery of products to customers' doorsteps. The door-to-door service segment is also gaining popularity in the B2B market due to the convenience it offers to businesses.

Global Air Freight Market Size By Type (%)

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Global Air Freight Market Regional Insights

North America dominated the global air freight market. The region's robust economy, advanced transportation infrastructure, and high demand for time-sensitive shipments contribute to its strong position. Major players in the North American air freight market include UPS, FedEx, and DHL. The United States, in particular, is a key market in the region, accounting for a significant share of air freight volumes.

APAC is the fastest-growing region in the global air freight market. The region's rapid economic growth, expanding middle class, and burgeoning e-commerce sector drive the demand for air cargo services. Countries such as China, India, and Japan are major contributors to APAC's air freight market. Additionally, the rise of manufacturing hubs and the increasing integration of APAC economies have led to significant growth in cross-border trade and air freight activities.

Global Air Freight Market By Geography
  • Largest
  • Fastest

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Global Air Freight Market Dynamics

Drivers

Rapid growth of e-commerce

  • One key driver of the global air freight market is the rapid growth of e-commerce. The rise of online shopping and cross-border e-commerce has led to an increased demand for fast and reliable transportation of goods. Air freight offers expedited delivery times, making it an ideal choice for time-sensitive shipments. As consumers increasingly rely on e-commerce platforms, the air freight industry is expected to continue its growth trajectory, driven by the need to meet the demands of this booming sector.

Restraints

Volatility of fuel prices

  • A significant restraint faced by the global air freight market is the volatility of fuel prices. Fluctuations in fuel costs directly impact operating expenses for air cargo carriers, as fuel represents a substantial portion of their overall costs. Unpredictable fuel price changes make it challenging for companies to accurately forecast and manage their financial performance. Additionally, rising fuel prices can lead to increased shipping costs, which may discourage some customers from utilizing air freight services and instead seek more cost-effective alternatives, posing a constraint on the industry's growth potential.

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Global Air Freight Market Competitive Landscape

The global air freight market is characterized by a diverse range of companies spanning airlines, freight forwarders, logistics providers, and integrators. These companies compete based on factors such as service reliability, network coverage, pricing, and technological capabilities. The market is highly fragmented, with numerous players vying for market share. Some focus on specific regions or niche markets, while others offer comprehensive global solutions. Continuous innovation, strategic partnerships, and investments in technology and infrastructure are crucial for companies to stay competitive in this dynamic and evolving industry.

Top Player’s Company Profiles

  • DHL (Germany)
  • FedEx Corporation (US)
  • UPS (US)
  • C.H. Robinson (US)
  • Kuehne + Nagel (Switzerland)
  • DB Schenker (Germany)
  • Nippon Express (Japan)
  • Expeditors International (US)
  • Panalpina (Switzerland)
  • Sinotrans (China)
  • CEVA Logistics (Switzerland)
  • DSV Panalpina (Denmark)
  • Agility Logistics (Kuwait)
  • Yusen Logistics (Japan)
  • Geodis (France)
  • Hellmann Worldwide Logistics (Germany)
  • XPO Logistics (US)
  • Kerry Logistics (Hong Kong)
  • Dimerco (Taiwan)
  • Bolloré Logistics (France)

Recent Developments

  • In May 2023, UPS announced the acquisition of Freightex, a UK-based digital freight brokerage, to expand its presence in the European air freight market.
  • In March 2023, Lufthansa Cargo announced the launch of a new digital booking platform, "myAirCargo," for the convenient and transparent booking of air freight shipments.
  • In February 2023, DHL Global Forwarding announced a partnership with AeroVironment for the development of electric vertical takeoff and landing (eVTOL) aircraft for the transportation of goods.
  • In January 2023, FedEx Express announced the launch of a new air route between the United States and Asia, to meet growing demand for air freight services in the region.
  • In July 2022, Emirates SkyCargo announced the launch of a new temperature-controlled cargo terminal at Dubai International Airport, increasing its capacity for the transportation of pharmaceuticals and healthcare products.

Global Air Freight Key Market Trends

  • One key trend in the global air freight market is the growing emphasis on sustainability and eco-friendly practices. With increasing environmental concerns, customers and stakeholders are demanding greener and more sustainable supply chain solutions. Air freight companies are adopting measures such as investing in fuel-efficient aircraft, utilizing alternative fuels, optimizing route planning, and implementing carbon offset programs. The integration of sustainable practices not only helps reduce the industry's carbon footprint but also enhances brand reputation and attracts environmentally conscious customers in a market increasingly focused on sustainability.

Global Air Freight Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.

According to our global air freight market analysis, the market is a dynamic and competitive industry driven by factors such as e-commerce growth, technological advancements, and increasing demand for sustainable practices. While North America is the dominant region in the market due to its established logistics infrastructure and key air cargo carriers, Asia-Pacific is the fastest-growing region, driven by the rise of emerging economies and the booming e-commerce sector. However, the market also faced challenges, including the volatility of fuel prices and the need to meet increasing sustainability demands. Key players in the market span a range of logistics companies and airlines, each competing based on factors such as service reliability, network coverage, and pricing. As the market continues to evolve, innovation and strategic partnerships are crucial for companies to stay competitive and meet the changing demands of customers and stakeholders.

Report Metric Details
Market size value in 2021 USD 66.6 billion
Market size value in 2030 USD 67.2 billion
Growth Rate 10.3%
Base year 2021
Forecast period 2023-2030
Forecast Unit (Value) USD Billion
Segments covered
  • Type
    • Domestic Air Freight and International Air Freight
  • End-User
    • Airport-To-Airport Service, and Door-To-Door Service
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • DHL (Germany)
  • FedEx Corporation (US)
  • UPS (US)
  • C.H. Robinson (US)
  • Kuehne + Nagel (Switzerland)
  • DB Schenker (Germany)
  • Nippon Express (Japan)
  • Expeditors International (US)
  • Panalpina (Switzerland)
  • Sinotrans (China)
  • CEVA Logistics (Switzerland)
  • DSV Panalpina (Denmark)
  • Agility Logistics (Kuwait)
  • Yusen Logistics (Japan)
  • Geodis (France)
  • Hellmann Worldwide Logistics (Germany)
  • XPO Logistics (US)
  • Kerry Logistics (Hong Kong)
  • Dimerco (Taiwan)
  • Bolloré Logistics (France)
Customization scope

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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Global Air Freight Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Global Air Freight Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Global Air Freight Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Air Freight Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Air Freight Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Global Air Freight Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQ's

Global Air Freight Market size was valued at USD 66.6 billion in 2021 and is poised to grow from USD 67.2 billion in 2022 to USD 133.47 billion by 2030, growing at a CAGR of 10.3% during the forecast period (2023-2030). Air freight has played a crucial role in meeting the growing global demand for trade in goods, driven by diverse supply chain dynamics such as long delivery times and expensive alternative modes of transport. The growth of the air cargo market has been facilitated by the improvement of air cargo routes in different countries, each with varying rates. Particularly noteworthy is the market's recovery and growth from pre-crisis volumes through the transportation of essential medical equipment, vaccines, and personal protective equipment (PPE). The significance of air freight extends beyond essential items, as it enables the timely delivery of non-perishable goods like jewelry, clothing, and auto parts, as well as perishable items such as fruits, vegetables, and meat. Moreover, the distribution of vaccines relies on a well-established temperature-sensitive system, incorporating state-of-the-art technologies and procedures. The thriving aviation industry further propels the market's expansion. Compared to other transportation modes like sea, rail, or road, air freight offers a substantial advantage in terms of time efficiency and security. Delivering cargo by plane minimizes delivery time, ensuring swift movement of goods. Additionally, air transport requires less packaging, reducing weight limits and improving cost-effectiveness. Consolidated air cargo services have gained popularity, positively influencing the market. In recent years, the global air freight market has demonstrated consistent growth, driven by factors such as expanding international trade, the proliferation of e-commerce, and the demand for time-sensitive shipments. Notable industry players include major airlines, freight forwarders, logistics companies, and integrators. The market is influenced by factors like fuel prices, capacity constraints, regulatory changes, and geopolitical considerations. Increasing emphasis on sustainable practices and the adoption of eco-friendly technologies reflect the industry's response to environmental concerns. The e-commerce sector has been a major driver of air freight growth, evidenced by a 27% increase in e-commerce air cargo demand in 2023 compared to the previous year.

The global air freight market is characterized by a diverse range of companies spanning airlines, freight forwarders, logistics providers, and integrators. These companies compete based on factors such as service reliability, network coverage, pricing, and technological capabilities. The market is highly fragmented, with numerous players vying for market share. Some focus on specific regions or niche markets, while others offer comprehensive global solutions. Continuous innovation, strategic partnerships, and investments in technology and infrastructure are crucial for companies to stay competitive in this dynamic and evolving industry. 'DHL (Germany)', 'FedEx Corporation (US)', 'UPS (US)', 'C.H. Robinson (US)', 'Kuehne + Nagel (Switzerland)', 'DB Schenker (Germany)', 'Nippon Express (Japan)', 'Expeditors International (US)', 'Panalpina (Switzerland)', 'Sinotrans (China)', 'CEVA Logistics (Switzerland)', 'DSV Panalpina (Denmark)', 'Agility Logistics (Kuwait)', 'Yusen Logistics (Japan)', 'Geodis (France)', 'Hellmann Worldwide Logistics (Germany)', 'XPO Logistics (US)', 'Kerry Logistics (Hong Kong)', 'Dimerco (Taiwan)', 'Bolloré Logistics (France)'

One key driver of the global air freight market is the rapid growth of e-commerce. The rise of online shopping and cross-border e-commerce has led to an increased demand for fast and reliable transportation of goods. Air freight offers expedited delivery times, making it an ideal choice for time-sensitive shipments. As consumers increasingly rely on e-commerce platforms, the air freight industry is expected to continue its growth trajectory, driven by the need to meet the demands of this booming sector.

One key trend in the global air freight market is the growing emphasis on sustainability and eco-friendly practices. With increasing environmental concerns, customers and stakeholders are demanding greener and more sustainable supply chain solutions. Air freight companies are adopting measures such as investing in fuel-efficient aircraft, utilizing alternative fuels, optimizing route planning, and implementing carbon offset programs. The integration of sustainable practices not only helps reduce the industry's carbon footprint but also enhances brand reputation and attracts environmentally conscious customers in a market increasingly focused on sustainability.

North America dominated the global air freight market. The region's robust economy, advanced transportation infrastructure, and high demand for time-sensitive shipments contribute to its strong position. Major players in the North American air freight market include UPS, FedEx, and DHL. The United States, in particular, is a key market in the region, accounting for a significant share of air freight volumes.

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Global Air Freight Market

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