Air Cargo Economic Policy
The basic principles ensuring sustainable growth through air connectivity
ICAO develops guidance material for its Member States concerning the economic regulation of international air transport, including for air cargo services.
Air Cargo Market Access – The Need to Liberalize
Currently, air cargo operators continue to face many constraints, including limited market access under a large number of traditional, bilateral agreements, along with a regulatory regime catering to the needs of passenger and passenger-cargo combination services. They also contend with operational restrictions, such as night curfews, limited ground-handling rights, and burdensome customs requirements.
New opportunities for air cargo stakeholders—shippers, operators, and other actors—add to this need for regulatory reform. The emergence of e-commerce in the late 1990s changed rapidly the retail landscape. Prolonged, COVID-19 restrictions on physical marketplaces accelerated the shift to e-commerce, pushing market demand beyond pre-pandemic projections.
Suppliers now seek faster, more reliable, and lower cost capabilities to deliver larger volumes of products to supply chain partners as well as directly to consumers.
As supply chains evolve to meet the needs of consumers, manufacturers and producers, regulatory frameworks must keep pace. Recent years have underscored the critical role of specialized supply chains, such as those in the pharmaceutical sector, alongside broader markets like e-commerce. These diverse business demands often require tailored transport solutions. Air cargo provides the necessary flexibility and efficiency, but its full potential can only be realized within an enabling regulatory environment that supports carriers, cargo owners, and other supply chain actors.
Important characteristics of air cargo are its "one way" directional nature, as well as the emergence of various truly global operators in the express delivery sector operating hubs in different countries. These characteristics make it more evident that the continuation of such restrictions as bans on night flights and slot regimes that favor passenger services hamper growth of the air cargo industry and its customer base in a globalized market.
Moreover, innovation is having an increased and positive impacts on supply chain operations, allowing for increased throughput. Digitalization is opening cargo information flows, which allows cargo to move faster toward its destination. Remotely-piloted aircraft systems and unmanned aircraft systems are now more reliably connecting suppliers/vendors to the customer's doorstep through package delivery capabilities.
ICAO urges recognition of the important role and distinct features of air cargo operations, as well as for more commercial freedom and business-oriented treatment. As recommended by Sixth Worldwide Air Transport Conference and endorsed by the 41st Session of the ICAO Assembly Assembly A41, ICAO has assumed a leadership role in the further liberalization of air cargo services. The Seventh Worldwide Air Transport Conference—planned for 2026—has the opportunity to further these efforts.
ICAO is actively working on this topic through the Air Transport Regulation Panel (ATRP), which is an expert panel comprised of imminent experts nominated by ICAO Member States, supported by recognized industry and other relevant stakeholders. The tasks of this panel include to examine the benefits and challenges of liberalization and barriers to opening market access, as well as to monitor the progress of liberalization and emerging issues of general interest to Member States and develop and update policy guidance. In so doing, the ATRP has concluded the further liberalization of air cargo services remains desirable.
Suggested resources:
Doc 10009, Report of the ATConf/6:
-Annex III Air Cargo Services
-Appendix 5 Template Air Services Agreement (TASA)Doc 9626, Manual on the Regulation of International Air Transport: Chapter 4.5 Air Cargo