The evolution and competitiveness of air cargo transportation: the case of Israel's airborne trade

Abstract

Abstract Air freight traffic has grown rapidly in the last decade. Although, in terms of volume carried, air cargo represents only a small fraction of the total trade, in value terms, its share is very significant. Against the background of the development of the world's air freight traffic and the factors behind it, this paper reviews the growth of air cargo movements in Israeli international trade and analyses the major components of this transport mode. Because of Israel's geopolitical position, air transport is a significant mode in the country's foreign trade. Air and sea transport are the only modes available for any trade going to and from Israel. The proportion of airborne trade in the total Israeli foreign trade is reviewed in light of the factors affecting the competition between air and sea transport.