Singapore: A strategic air cargo hub

According to the DHL Global Connectedness Report 2024, Singapore was ranked as the most globalised country in the world. With Changi Airport at its heart, the city-state is rapidly evolving from a regional gateway into a future-proofed logistics powerhouse focused on high-value and time-sensitive cargo. Changi Airport moved 2.01 million tonnes of air freight in 2019, before the pandemic triggered a sharp contraction. By 2022, volumes had recovered to more than 1.5 million tonnes between January and October, alongside 170,000 aircraft movements—53 per cent of pre-Covid levels.

The rebound accelerated through 2023 and 2024, with cargo driven by semiconductors, e-commerce, and pharmaceuticals. In Q2 2025, Changi handled 516,000 tonnes of airfreight, marking a 6.2 per cent year-on-year increase and signalling a return toward, and in some segments beyond, pre-pandemic performance. Growth in imports, which rose 8 per cent compared to Q2 2024, underscores sustained demand across key supply chains.

"Operating at Changi demands the highest standards of excellence and performance."
Henry Low, SATS

Record cargo volumes and strategic location
In 2024, Singapore processed nearly two million tonnes of air cargo, driven by strong growth in electronics, pharmaceuticals, and cross-border e-commerce shipments. Lim Ching Kiat, Executive Vice President for Air Hub & Cargo Development at Changi Airport Group, notes, “Changi Airport saw a notable 15% year-on-year growth in international air cargo throughput in 2024, making us the ninth largest air cargo hub globally by international air cargo tonnage. In the first eight months of 2025, Changi Airport’s air cargo tonnage saw an increase of 4% year-on-year with growth across all cargo flows.” These volumes make Singapore the ninth-largest international air cargo hub by tonnage worldwide, a significant achievement for a city-state of its size. From January to August 2025, Changi handled 1.35 million tonnes of cargo, an increase of 53,000 tonnes from the 1.3 million tonnes recorded in the same period in 2024.

The city-state’s location at the crossroads of major East-West and North-South trade routes naturally makes it an indispensable link connecting Asia Pacific markets with the rest of the world. Lim highlights, “Strategically positioned at the intersection of vital global trade corridors, Singapore’s unique geographical location, coupled with its advanced manufacturing base, naturally positions Changi as a premier conduit for intra-Asia Pacific cargo flows, as well as between Asia Pacific and the rest of the world.”

Singapore’s air cargo network encompasses around 160 cities through nearly 100 airlines, including more than 20 freighter operators serving about 45 key destinations. The network spans major economies such as the US and Europe, as well as high-growth regions like Southeast Asia and the Middle East.

"The growth of special cargo is outpacing that of general cargo, and Changi is investing to meet the unique needs of high-value industries."
Lim Ching Kiat,Changi Airport Group

Future-proofing through infrastructure and technology
Beyond location and connectivity, Singapore is aggressively future-proofing its air cargo sector through expanded capacity, digitalisation, and sustainability initiatives. Henry Low, CEO of SATS Singapore Hub, notes, “SATS Singapore Hub has a clear mission to strengthen and elevate aviation operations in Singapore. Operating at Changi Airport demands the highest standards of excellence and performance. With Singapore entering a new phase of growth through the upcoming Terminal 5, SATS is investing S$250 million over the next five years in people, technology, and infrastructure to future-proof operations and enhance service delivery. This includes building capacity to handle increased volumes and enhancing capabilities to manage operational complexity.”

On the digital front, Singapore is a pioneer in implementing advanced technology solutions that improve process transparency, operational efficiency, and cargo flow management. Lim explains, “Our priority is to create processes that support fast, transparent, and efficient cargo flows. Initiatives such as the Truck Dock Slot Booking (TSDB) system, introduced in 2024, exemplify this approach by streamlining cargo lodgement and collection at our ground handlers’ cargo terminals.”

"Our vision is to make supply chains smarter for everyone."
Eric Tan, FedEx 

High-value cargo focus
Key to Singapore’s vision is the focus on high-value, time-critical cargo sectors. Lim emphasises, “Today, semiconductors make up for about 7% of Singapore’s Gross Domestic Product (GDP). Singapore accounts for 10% of semiconductor chips and 20% of chip-making equipment globally.”

According to Dimerco’s Asia Pacific Freight Report for October 2025, peak-season air freight demand from September to November is being driven largely by Southeast Asia, with Thailand, Vietnam, Malaysia, and Singapore emerging as key origins for high-tech, AI, and semiconductor shipments. The surge in exports is expected to strain capacity at major transit hubs, including Singapore, Hong Kong, Taiwan, and Korea.

The pharmaceutical sector underscores Singapore’s emerging role as a regional cold chain centre of excellence. Lim describes how, “We work alongside our hub carrier, Singapore Airlines Cargo, whose THRUCOOL service provides cold-chain integrity through features such as dedicated cold rooms, quick ramp transfers, priority uplift and high visibility across a growing corridor network.”

E-commerce growth further accelerates Singapore’s air cargo prominence. “E-commerce has transformed supply chains by setting new benchmarks for speed, cost efficiency, and reliability,” Lim explains. “At Changi, our focus is on enabling logistics players to meet these demands through seamless connectivity, efficient ground operations, and close collaboration with partners.”

"From warehouse to aircraft, we maintain an unbroken cool chain with real-time tracking and priority handling."
Sam Gould, dnata 

Industry collaboration and global partnerships
The success of Singapore’s air cargo ambitions hinges on strong collaboration among global airlines, handling agents, and logistics companies. Eric Tan, Managing Director of FedEx Singapore, states, “Our South Pacific Regional Hub at Changi is central to how we connect businesses in Singapore and Southeast Asia to the rest of the world. The hub strengthens our Asia Pacific network by consolidating air, ground, and on-site customs facilitation, allowing shipments with greater speed and control from aircraft arrival to final delivery.”

Ashish Kapur, Regional Head of Cargo for Southeast Asia and Oceania at Cathay Cargo, articulates how “Singapore plays a complementary role as an important regional gateway in Southeast Asia. Strengthening connectivity across key markets such as Indonesia, Malaysia, Vietnam, and Australia, Singapore is undoubtedly one of Asia’s most competitive transshipment hubs, thanks to its world-class infrastructure, operational efficiency, and trusted handling partners.” Cathay balances freighter and bellyhold cargo flows through Singapore, offering solutions for high-volume and specialist cargo while supporting diverse supply chains within Southeast Asia and beyond.

"Singapore continues to set the benchmark for reliability, efficiency, and resilience in the Asia-Pacific region."
Peer Rasmussen, Kuehne+Nagel

Sam Gould, Head of Cargo, dnata Singapore, highlights dnata’s central role: “Changi Airport is a global benchmark for cargo digitalisation, and dnata plays a key role in driving this transformation. We’ve deployed AI-powered ULD planning and advanced dimensioning systems capable of processing up to 75,000 tonnes of temperature-sensitive goods annually in our pharma and perishable handling centre.”

Peer Rasmussen, Managing Director of Kuehne+Nagel Singapore & Malaysia, points to Singapore’s broader advantages: “Singapore’s strategic location, business-friendly regulatory framework, and world-class infrastructure make it one of the most reliable logistics hubs globally. For Kuehne+Nagel, Singapore is more than a transit point. It plays a central and stable role in our long-term air logistics strategy.”

Singapore is also well integrated into Lufthansa Cargo’s global network through passenger flight bellyhold capacity from Frankfurt and Munich, with twelve weekly frequencies planned for the winter 2025/26 schedule.

"Singapore is a critical gateway for pharma, perishables, and e-commerce, supporting reliable and high-volume flows."
Ashish Kapur, Cathay Pacific

Leveraging its location, robust infrastructure, technology-driven efficiency, and sustainability commitments, Singapore is reshaping supply chains for the future. As described by industry leaders, Singapore’s ambitions now rival entire regions, with Changi Airport and its partners pioneering next-generation cargo handling to redefine what it means to be a global logistics hub. Singapore’s air cargo journey is a story of bold vision, collaborative innovation, and pragmatic execution, proving that size is no barrier to influence in global trade.

The article was originally published in the Oct 2025 issue of The STAT Trade Times.