Air cargo has experienced another extraordinary period of international trade uncertainty and volatility, as the new US administration discussed and then introduced a series of new tariffs, trade negotiations, amendments, exemptions, and then suspensions, extensions, and reversals. And the various announcements and implementations of reciprocal tariffs have caused further instability among markets and supply chains, impacting on shippers, carriers, forwarders, and all air logistics stakeholders.
Although these developments have threatened to upend key pillars or drivers of air cargo’s historical growth – globalisation, and most recently e-commerce – the possible thawing of US-China trade relations suggests that this story still has a long way to go. And on pages 40-53, CAAS brings together various perspectives on the recent chaotic developments in US international trade policy, and the implications for air cargo. For example, AfA’s Brandon Fried highlights (page 50) how front-loading shipments to beat tariff introduction dates is inevitably leading to last-minute changes, increasing costs, and ultimately burdening end consumers with price rises. Although the air cargo sector relies on expertise, planning, preparation and efficiency to deliver, it has the capability to react to these challenges; but “tariffs are hampering our ability to excel”, he points out.
In the meantime, there are plenty of other markets around the world, for e-commerce and other cargo shippers – as highlighted in the regional reports in this issue on the Middle East (page 16) and Africa (page 30). And it’s clear that e-commerce shippers are aggressively targeting those and other markets.
Prior to the explosion of e-commerce air cargo volumes in the last few years, Pharma (pages 4-14) was one of air cargo’s great hopes, for growth and improving margins – and the target of major investments in facilities, processes and products. And it remains a solid and important air freight market that returned to modest growth last year, and one where those investments in facilities, processes and products have resulted in improvements in quality, reliability and visibility.
Elsewhere in this edition of CAAS, Camilo Garcia Cervera shares an update on IAG Cargo’s response to shifting customer expectations around digitalisation (page 42). And on page 54, IBS Software’s Radhesh Menon shares some research on air cargo staff attitudes and perspectives. He urges that as air cargo embraces digital transformation, let’s also transform how we support, engage, and inspire its workforce.
