The dramatic shifts this year in US trade and tariff policies have obviously had major implications for international air cargo stakeholders and led to considerable uncertainty and volatility.
Among the unintended consequences has been a warming of relations between some former geopolitical rivals such as India and China, as countries and companies adjust to a world in which the US has become a less reliable partner. The longer-term implications of these changes in trading patterns and the wider world order look significant and will become clearer over time.
Meanwhile, as companies navigate the short-term implications – particularly in Asia – air cargo stakeholders within that region are continuing apace to build air cargo infrastructure and capacity at a rapid rate, as highlighted in the Asia report (page 4). One important development, logistically, is the emergence of domestic Chinese brands that are free to sell and ship their goods wherever they choose. That is encouraging new trade flows from China to emerging international markets.
Elsewhere, investment in building and modernising air cargo infrastructure also continues, including within existing and new airport cargo locations. That’s highlighted within the Warehousing, Facilities & Infrastructure report (page 22). And it’s also a key element of the interview article with Lufthansa Cargo COO Frank Bauer (page 46), who discusses the project to refurbish and rebuild the German carrier’s main central air cargo handling infrastructure at Frankfurt Airport.
American Airlines Cargo CEO Greg Schwendinger outlines the challenges of managing periods of high volatility as a bellyhold cargo carrier, observing how freighter operators have helped even out supply and demand imbalances this year for all carriers (page 14). And Chapman Freeborn CEO Eric Erbacher discusses the role of air cargo charter brokers in helping the entire air cargo ecosystem manage volatility and risk, explaining that this is actually the basis of their business model!
US-headquartered air cargo handler AGI highlights the importance of not overreacting to fluctuating demand patterns, while recognising the important role of good business intelligence technology and data in helping to manage cargo handling resources efficiently and cost-effectively – for airlines and the cargo handlers themselves.
And the series of interviews with key players within the GSSA market (pages 34-44) underlines the increasing depths of partnerships between sales agents and carriers, and the role of new tools to support effective collaboration.
As the air cargo sector experiences yet another volatile and uncertain year, key themes include the value of good data, technology, and business intelligence, to anticipate demand patterns, communicate effectively, and manage resources efficiently. And ultimately that involves responding flexibly and intelligently to fast-changing needs.
