India’s Air Cargo Grows Amid Legacy ULD Systems and Rising Demand

  • India’s air cargo throughput rose 5.2% year-on-year to 1.62 million tonnes between April–August 2025, supported by strong manufacturing output, exports, and e-commerce.
  • Airlines face growing pressure to modernise Unit Load Device (ULD) management, with nearly 8% of global ULDs overdue for return; both Air India–Unilode and IndiGo–ACL Airshop partnerships mark a shift toward digital, outsourced models.
  • India’s ULD ecosystem is evolving through leasing, lighter and sustainable designs, and greater digital adoption, driving safer and more efficient cargo operations.
Unilode Aviation Solutions’ smart ULDs and pallets for next-gen cargo management. Photo Unilode

The recovery of the Indian air cargo market has been encouraging. From April 2025 to August 2025, the cargo handled by all airports in India was 10,11,351.9 metric tonnes (international freight alone), up by 4.5% during the same period in the previous year, while domestic freight increased to 609,175 metric tonnes, up by 6.4%.  

The combined cargo growth was 16,20,527 metric tonnes, up from 15,40,336 metric tonnes, up by 5.2%. This represents healthy growth. By 2030, the tonnage is forecast to touch nearly 6 million metric tonnes, with international freight outpacing domestic, as per the Airports Authority of India. 

The growth is attributed to a combination of factors, including the performance of the manufacturing sector, strong exports by pharma and perishables, rapid expansion in e-commerce and significant infrastructure improvements. 

Very much part of the infrastructure is the ground handling systems at airports and with airlines. Fortunately, several airports in India are investing substantially in expanding cargo facilities, though as an adjunct to passenger facilities. In 2025-26 (April to August 2025), the Indira Gandhi International Airport at New Delhi, with its dedicated cargo terminals and advanced handling systems, handled 306,936 metric tonnes, marginally up from 304,463 metric tonnes of international freight.

Domestic freight has done well during this period, registering 161711 metric tonnes of cargo movement, up from 145236, a 11.3% increase. Similarly, the Chhatrapati Shivaji Maharaj International Airport in Mumbai, which has a new cargo terminal (including temperature-controlled facilities for perishable goods), handled international freight to the tune of 283,843 metric tonnes, up 4.5% while domestic freight was in the negative by -2.8% with 96,840 metric tonnes handled. 

Another airport that is doing well in cargo is the Kempegowda International Airport, Bengaluru, which is handling high-tech goods and perishables at an encouraging pace. Bengaluru handled overall 218,261 metric tonnes, up by 2.2% from the previous period. The story is similar in other key metro stations. 

ULDs critical to cargo movement

At the core of all this encouraging air cargo movement are the Unit Load Devices (ULDs), and without them, no cargo gets loaded onto an aircraft. ULDs are essential parts of an aircraft, acting as containers or pallets that securely hold cargo, baggage, or mail during flight. The ULDs are critical to flight safety as they secure the cargo loads, protecting both the cargo and the aircraft’s structure from any likely damage.

Air cargo pallet with safety net ensuring secure freight movement. Photo: ACL Airshop

Demand for ULDs up in India

The demand for ULDs in India is quite substantial, driven basically by two factors – encouraging the growth of air cargo and the plane acquisition spree by airlines, particularly Air India and IndiGo. The two airlines have orders of nearly 1,500 aircraft (Air India has 570 aircraft on order; IndiGo has 980 aircraft on order), which translates into carrying more passengers and cargo over the next decade. Then there are other players, including Blue Dart Aviation, Quikjet Cargo, and the recently launched Pradhaan Air Express

ULDs are the lifeline for cargo and passenger airlines to secure cargo or baggage in the cargo hold. With increased air traffic, the demand for ULDs is high, and the aviation sector is already experiencing a strain on ULD inventories. Airlines and ground handlers need to invest more in improving availability and digital adoption. 

ACL Airshop ULD logistics and leasing solutions. Photo: ACL Airshop

The cargo teams at airlines are working around the clock to ensure that these assets are available at the right time and place, which is a challenging task.

The fact that cargo is experiencing exponential growth, the ULD teams have to get their act right. Presently, there are several imbalances in ULD management, and airlines need to address them.

Air cargo systems have not easily transitioned to technologies, with many of them continuing legacy systems in ULD management. Cargo managers thus have an onerous task of ensuring that ULDs are optimally used, considering that there are situations where ULDs are lying unutilised in low-traffic regions, while there is a shortage of ULDs in high-demand regions, impacting operations. 

8% of the global ULD fleet is overdue for return

As per ULDigital 2024, around 8% of the global ULD fleet is overdue for return, affecting approximately 30,000 units globally at any point in time, resulting in lost revenue opportunities as sometimes airlines have to fly empty ULDs back. One of the problems in the air cargo industry remains that freight forwarders do not return the ULD to airlines on time as demurrages may not be enforced or they are not stiff, thus the issue of unavailability of ULDs when needed remains. 

Leasing trend

To address shortages, airlines are partnering with ground handlers to ensure the availability of ULDs. Many airlines are leasing ULDs, while others are offering incentives for faster return of ULDs.

Last March, Air India, India’s leading global carrier, signed up with Unilode Aviation Solutions, the market leader in outsourced ULD management, repair, and digital services. Unilode will provide complete ULD management solutions and digitalised containers and pallets from its pool for Air India’s passenger and cargo flights. 

Unilode’s Chief Executive Officer Ross Marino said, “We celebrate this partnership with Air India and are committed to providing the highest level of service across our global network. We are excited about Air India’s ambitious growth plans and look forward to contributing to their success and supporting them with Unilode’s full-service ULD management solutions.”

Digitally tracked Unilode ULD containers used across Air India’s international network. Photo: Unilode

Mohammed Akhlaq, Unilode’s Chief Commercial Officer, said, “We are committed to contributing to Air India’s sustainability goals by supplying digital containers and pallets from Unilode’s 165,000-strong ULD pool as well as providing network-wide global repair services. As the owner of the world’s largest ULD fleet, our global reach and scale will ensure we can deliver throughout Air India’s network whilst we commit to acquiring new state-of-the-art ULDs to meet the demands of Air India’s expanding aircraft fleet and new destinations.”

Similarly, IndiGo in August partnered with ACL Airshop, a global ULD logistics specialist, to strengthen its cargo operations through advanced ULD tracking, pooling, and leasing systems. The partnership supports IndiGo’s long-haul expansion by ensuring efficient ULD availability and digital asset management across key international gateways.

, the logistics partner of Envirotainer, a leading global provider of active cold chain solutions, has set up leasing and drop-off ULD stations in Mumbai, Bengaluru, Ahmedabad and Hyderabad. 

The trend for leasing and rental services for ULDs is noticeable as airlines are realising that acquisition and maintenance of ULDs come with high costs. With leasing ULDs, airlines can manage costs and also stay agile to demand fluctuations. 

Dr. Jan-Wilhelm Breithaupt, the CEO of Jettainer, which has over one lakh ULDs in 500 locations worldwide, said Jettainer’s ‘lease & fly’ service was almost completely booked last year, thanks to the growing demand for ULDs.  While addressing demand, Jettainer is also working on making lighter yet robust ULDs. Dr. Breithaupt said, “In addition to fire-resistant containers, we also provide nets for pallets made from sustainable bio-based materials, from our long-standing partner AmSafe Bridport. Around 60 per cent lighter than conventional polyester options, they reduce fuel consumption, cutting costs and greenhouse gas emissions in international air transport.”

He said that Jettainer was working on making the ULD journey even more transparent. “There are still gaps that we want to fill to achieve further improvements and achieve an even higher level of efficiency for our customers, especially where units leave the airports. Digital solutions and better data transfer between all parties involved are key factors. This is why we are preparing to adopt the IATA ONE Record standard for all areas of ULD management. By adding additional data from the handling process or the truck operators, we will enrich our knowledge base with more information.”

ULD damage due to ‘mishandling’

On the issue of ULDs getting damaged due to ‘mishandling’, which is said to be costing the industry $300 million annually in repairs globally, Dr Breithaupt adds, “There should be more awareness in the industry that ULDs are aircraft equipment providing safety cargo restraint in flight. The issue of damage to ULDs is very serious and causes high costs for the industry every year. Furthermore, ULD damage is also relevant to flight safety and workplace safety. We, therefore, work closely with manufacturers, MROs, and regulators to design ULDs in such a way that the risk of damage is minimised. We never tire of raising awareness of the correct handling of ULDs. With special courses, we train several thousand ground handling employees worldwide in correct storage as well as proper handling of the units. Incorrect handling of ULDs, such as placing and loading them directly on the warehouse floor, is unfortunately a common but avoidable practice among airlines and freight forwarders, which we are addressing.” 

Jettainer’s next-gen lightweight containers supporting greener cargo operations. Photo:

More players getting into the segment

With demand for ULDs remaining unabated, Bengaluru-based HaveUs Aerotech Limited in January this year secured approval from the Directorate General of Civil Aviation (DGCA) to offer specialised maintenance services for key aircraft components – Unit Load Devices (ULDs) and pallets. The company is the first MRO in India to receive the DGCA CAR 145 certification for ULD and pallet maintenance.

The DGCA certification allows the company to offer maintenance and repair services for ULDs and pallets, which are integral to the safe and efficient operation of cargo transport on aircraft. The approval not only enhances the company’s service offerings but also contributes to the broader aviation ecosystem, ensuring that cargo operations continue to run smoothly and safely across India and beyond while ensuring strict adherence to international safety standards.

ULDs are the only aircraft parts that leave the control of the airline, return after passing through many unregulated hands, and have an impact on flight safety; the need for digital solutions is urgent in this realm.

ULD Care, the global industry association, has lamented the laggard adoption of digitisation. “Sad to say the methods used to control the whereabouts of ULD remain little unchanged since the first PANAM flight in early 1970.” Digital solutions are required to deal with operational inefficiencies that invariably add up to costs and delayed shipments, which is not good for the air cargo sector in the long run.

Also Read: IndiGo signs ACL Airshop for ULD management, signalling a step-change in its cargo play

× Would love your thoughts, please comment.
Comment Icon
Subscribe
Notify of

0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Share