Air Cargo Insurance Statistics: Soaring Insights

January 2, 2024

By Jacob Lee

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> Air Cargo Insurance Statistics: Soaring Insights

Last Modified: March 14, 2024

Air cargo insurance statistics can give you some key insights into the inner workings of this industry. If you’re sending freight by plane, our data will show you why getting coverage is essential.

Key takeaways:

65.5 million tons of air cargo was moved between 2017-2021
The 2023 global cargo transportation insurance market was $54.12 billion
The airline accident rate in 2022 was 1.21%
The global air cargo insurance market size was $19.4 billion in 2022
About 26.9 percent of freight traveled on the North America — Asia route

We’ll discuss air cargo insurance statistics to demonstrate the importance of protecting your freight.

Air Cargo Insurance Statistics Explained

Despite being one of the safest ways to send freight, it’s still recommended that you insure any cargo. . While heightened security tends to reduce theft, there are a variety of other problems that can occur.

This can include:

Human error
Extreme weather
Turbulence
Cargo fires

Air cargo insurance is lumped together with other methods of coverage, such as land and marine. Each of these come together to form the larger cargo insurance market.

Carts with air freight that is about to be loaded into a plane

Volume of Air Cargo Shipments

Shippers all across the globe use air transport to send their cargo to different places. Over the past few years, this transportation method has become increasingly popular. Initially, it saw a spike when ports became highly congested and continues to be popular with time sensitive shipments.

Volume of Air Cargo (2017-2021)

Year	Amount of Worldwide Air Freight (in a million metric tons)
2017	61.5 million
2018	63.5 million
2019	61.5 million
2020	55.4 million
2021	65.6 million

Provided by Statista

As the data shows, the amount of freight transported by air has steadily increased over the past few years. The sharp decline in 2020, likely caused by the COVID-19 pandemic, has since recovered as supply chains normalize.

With so many shipments in the air, the likelihood of freight being damaged is higher. This will likely increase the need for air cargo insurance coverage amongst shippers.

If you’re shipping by sea, then read our article on ocean freight safety to learn about the potential dangers.

Air Cargo Route Statistics

As a result of the increasing demand for air cargo transport, the amount of routes for planes to travel on has also expanded. We’ve included some data that shows the most commonly used routes that are used to transport air freight.

In 2020, the North America — Asia route made up 26.9 percent of all air freight shipments
The Europe — Asia route came in second place, making up 20.8 percent of all air cargo in 2020
The North America — Europe route made up 12 percent of air cargo transported during 2020
Coming in third place, routes within Asia made up 7.4 percent of air cargo during 2020
In fourth, the Asia — Middle East route had 6.8 percent of the world’s cargo traveling on it during 2020.
Other global routes, often irregular or from charters, make up the remaining gap.

Expanding routes means shippers have more options when it comes to transporting their goods. That said, growth into new geographic areas can introduce more risks and increase the need for insurance coverage.

If you’re shipping by plane, it’s important to know what it will cost. Our article on air cargo insurance rates we’ll help give you the insights you require.

Statistics of Airline Safety Records

Another critical insight to consider when it comes to air cargo insurance is the safety record of airlines. The International Air Transport Association (IATA) releases safety reports that keep track of accidents and other incidents that occur.

IATA 2022 Safety Report

Accident Type	Occurrence
All Accident Rate	1.21 %
Accident Rate for IATA Member Airlines	0.49 %
Total Accidents	39
Jet Hull Losses	0.17%
Turboprop Hull Losses	1.47 %
Total Flights	32.2 %

Provided by IATA

While air transport is fairly safe, there is data to prove accidents can still occur. Therefore, it’s essential to protect your goods in the event that something goes horribly wrong.

Amount of Air Cargo Insurance Claims

Obtaining data on air cargo insurance claims is difficult, as there is a small amount of publicly available information on the topic. That said, there are statistics on aviation insurance that provide some revealing insights.

Aviation Claims for Risks That Affect Shippers (2016–2020)

Claim	Percentage
Collisions/Crash	30%
Travel Issues (late delivery, delay, baggage)	13%
Damaged Goods	24%

Provided by Allianz

Aviation insurance is coverage used to cover the risks involved when operating an aircraft. The damages that airlines file claims for are also risks that can negatively impact freight belonging to shippers. This means that businesses and airline companies face the same freight concerns when a plane leaves the runway.

A truck with a scissor lift platform that's raised up to an entrance on a plane

Size of the Air Cargo Insurance Segment

The global cargo insurance industry was valued at $71.4 billion in 2022 and is projected to be worth as much as $106 billion by 2032. That said, the air segment of this market makes a small but sizeable portion of this overall amount. We’ve provided data demonstrating this.

In 2022, the global air cargo insurance industry had a total value of $19.4 billion
The value of the global air cargo insurance market is projected to be $26.4 billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 4.5 percent
Europe holds the largest market share of air cargo insurance, accounting for 34.9% in 2022
In second place is North America, which holds 26.4 percent of the air cargo insurance market share

Air cargo insurance is highly sought after amongst shippers of various commodities around the world. Therefore, getting protection on your goods is essential when shipping them internationally.

If you’d rather move your cargo with a vessel, then check out our article on marine cargo insurance statistics.

Protect Your Shipments with Freight Insurance Coverage

At Freight Insurance Coverage, we specialize in offering tailored solutions that meet your specific needs. Our commitment is to provide you with the most reliable and cost-effective insurance option that ensures your freight is protected from the moment it’s picked up, to its final destination.

Our quote forms automatically apply the cost of insurance. This means you’ll know the full estimate of how much you’ll spend when shipping a load of insured freight with us. Get started today by filling out your quote to protect your cargo. Our team is also available at (866) 975-0749 for extra assistance.