• Global airfreight growth is steady but uneven, with airlines focusing on tactical ULD procurement driven by sustainability, cost, and shifting trade dynamics. Lightweight composite containers and fire-resistant smart systems are emerging as key innovations.
• Sustainability and cost efficiency now define ULD strategy, with lifecycle analysis, circular design, and collapsible containers cutting emissions, repairs, and repositioning costs while improving total cost of ownership.
• IoT-enabled tracking, predictive maintenance, and harmonised repair practices are transforming ULD management, setting the stage for lighter, safer, and digitally connected fleets that balance performance with environmental responsibility.

Airfreight operators are entering a period of cautious optimism as the global demand for Unit Load Devices (ULDs) continues to evolve. The first half of 2025 saw steady year-on-year growth in both passenger revenue passenger kilometres (RPKs) and cargo tonne kilometres (CTKs), though momentum slowed by June. Market dynamics remain complex, influenced by geopolitical conflicts, U.S. tariff changes, aircraft delivery delays, and shifting carbon-emission pressures.

“The medium- to long-term outlook is positive,” observes Charles Drummond, CEO of AviusULD, “with forecasts suggesting around four percent annual air cargo growth over the next two decades. But airlines are more tactical in ULD procurement than ever, weighing operational needs against sustainability and cost considerations.”

Trade lanes are diverging in their performance. The Asia–North America corridor has been hit by tariff adjustments, while routes connecting Asia–Europe and the Middle East–Asia remain more resilient. e-commerce continues to expand at roughly nine percent annually, yet U.S. policy changes are redirecting flows through Southeast Asia and Middle Eastern hubs. Pharmaceuticals in temperature-controlled containers are projected to grow at approximately ten percent per year, driving interest in weight reduction, energy efficiency, and digital visibility.

“Perishables remain a cornerstone of airfreight,” Drummond adds, “especially high-value, time-critical commodities like fresh flowers, seafood, and premium produce. Innovation here focuses on passive insulation and thermal cover technologies to ensure cargo integrity.”

Route shifts and operational pressures 

Airline networks are recalibrating in response to operational, environmental, and regulatory pressures. “Aviation’s decarbonisation drive means carriers are looking beyond fuel burn alone,” Drummond explains. “Our independent analysis with EcoMatters found that more than ninety-nine percent of a ULD’s lifetime emissions occur in flight due to the additional fuel required to carry its weight.”

Reducing tare weight is the most effective lever for lowering emissions, leading airlines to shift from traditional aluminium to lightweight composite containers. “Our Endumax® containers, as light as 51 kg, combine lower emissions with durability and repairability, improving total cost of ownership,” he says.

Safety pressures are also reshaping designs, particularly with the rise of lithium battery-powered devices. “Fire-resistant containers and containment covers are in use, but adoption is uneven,” Drummond notes. “Our SmartULD Firetag system integrates digital tracking with sensors to detect lithium battery off-gassing before thermal runaway, providing airlines with early intervention capabilities.”

Narrowbody aircraft like the Airbus A321XLR are creating new operational profiles, particularly on long-haul routes. “These aircraft can carry multiple AKH containers efficient for bellyhold use, but are limited in cargo carrying capacity smaller than standard LD3s but efficient for bellyhold use,” Drummond explains. “We expect demand for AKH production and availability to grow, especially at U.S. and European gateways.”

Total cost of ownership 

The calculation of total cost of ownership (TCO) is becoming increasingly sophisticated. “It’s not just about purchase price,” Drummond emphasises. “Operators need to account for fuel burn from tare weight, repair frequency, loss, storage, repositioning, and end-of-life handling.”

Leasing and popular tactics. Short-term leasing addresses seasonal demand, while outsourced ULD management converts capital expenditure into operational expense,” he says. “Good IoT tracking now allows airlines to cut buffer stocks from seven to three shipsets per aircraft in some cases.”  Short term leasing is tactical to address short term ULD requirements during high seasonal demand.  Outsourcing is more strategic, where an airline chooses to convert capital expenses into operational expense and may not have processes and systems to optimize stock flows.

Innovations in door closures illustrate the point. “Traditional Velcro closures are a frequent repair point,” Drummond says. “Our patented SEN Door reduces downtime, lowering TCO and emissions from repositioning damaged units.”

Choices, sustainability and circular practices

Airlines are increasingly incorporating sustainability metrics into procurement decisions. “Lifecycle analysis is essential,” Drummond insists. “Aluminium may be recyclable, but over ninety-nine percent of a ULD’s carbon footprint comes from fuel burn. Weight reduction dominates sustainability outcomes.”

Composite materials, such as AviusULD’s Endumax panels, offer significant advantages. “Our lightest AKE weighs just 51 kg, fourteen kilograms lighter than aluminium alternatives,” Drummond explains. “Composites reduce fuel burn and emissions, extend panel life, and require fewer repairs. Modular design ensures circular economy practices like refurbishment and recycling are feasible.”

Collapsible containers also contribute to efficiency. “Although slightly heavier when full, collapsible AKEs fold flat for repositioning, drastically cutting the fuel burned moving empties,” Drummond says. “This innovation maximises payload utilisation and reduces carbon footprint network-wide.”

IoT, predictive maintenance and visibility

Digital tracking is transforming ULD management. “Around twenty percent of ULDs globally are IoT-enabled,” Drummond notes, “and this isn’t just tracking location; it’s monitoring condition, occupancy, and impact events.” Integration into predictive maintenance allows operators to detect damage early and optimise network planning.

“This is entering a new phase,” he adds. “IoT tracking is now scaling, requiring managerial courage and AI-assisted decision-making. We’re moving towards exception-based management rather than micromanaging every asset.” Current IoT tracking is not proof of concept.  Most of the existing tracking systems are BLE based which requires expensive reader infrastructure and provides limited visibility.  The patented AviusULD, energy harvesting technology addresses limitations of battery life which allows more sophisticated tracking and communication technology, eliminating the need for infrastructure and providing better visibility of assets.

Harmonisation and outlook

Operational inconsistencies remain a barrier. ULD handling and storage practices vary widely, high front line staff turnover and limited training exacerbate damage rates, and messaging compliance is uneven. “Application of a globally consistent set of practices would reduce inefficiencies, damage and loss,” Drummond says.

Centralised versus decentralised repair networks also impact efficiency and sustainability. “Decentralised repair reduces downtime and carbon emissions, but contracts and analytics must be carefully managed,” he advises. Structured Lean Six Sigma approaches, as implemented in AviusULD’s Ascend programme, demonstrate that repair facilities can cut footprint while doubling output, highlighting untapped industry potential.

“Looking ahead,” Drummond concludes, “airlines will prioritise lighter, safer, digitally-enabled ULDs. Innovations in materials, IoT, and operational design will define who thrives in the next phase of airfreight growth, balancing cost, sustainability, and operational efficiency.”