Freight forwarders operate in a dynamic environment where change is constant, demanding readiness and flexibility at all times. This has been especially true recently as they navigate increasing complexities in the American market. Among these challenges are heightened security concerns.
“Cargo security is our foremost priority. As an industry—and as a nation—we cannot succeed without ensuring the safety of the public. This has always been a challenging task, and it remains so today,” Brandon Fried, Executive Director of the Airforwarders Association, said.
“One of the key tools in addressing these challenges is the adoption of advanced data regimes. While screening 100% of cargo is essential, it’s not foolproof, which is why a risk-based, multilayered approach is critical.
“This is where the Air Cargo Advance Screening (ACAS) system has been a game-changer. From the start, we were strong proponents of ACAS, recognising its potential to begin with a basic set of data elements and expand over time to include more sophisticated data points.”
Customs and Border Protection (CBP) has confirmed that ACAS has been effective, particularly in identifying risks, by analysing shipping and receiving patterns. In some instances, shipments flagged by the system overseas were found to pose real threats, such as igniting in transit. The ability to use data to draw correlations and assess risks is vital to the screening process.
However, the threat landscape is constantly evolving. Adversaries are resourceful, holding their own meetings and devising new ways to exploit vulnerabilities.
“While we may occasionally lag behind in areas such as technology or canine training, we are confident in our ability to adapt and catch up. What we cannot do is allow bad actors to disrupt the air cargo system or dictate the terms of our response,” Fried continued.
“The solution lies in maintaining constant vigilance, investing in technology, and refining our processes to stay one step ahead. Security is a continuous effort, and we are committed to ensuring the safety and integrity of the air cargo system.”
“There will always be new threats—third, fourth, fifth, and beyond—and we must operate with that reality in mind, constantly adapting our processes to stay ahead. This is why the air cargo security regime must remain flexible and ever-evolving.”
Beyond security
For forwarders, the focus isn’t solely on security. There is a deep concern about the potential policies of the incoming Trump administration. While the Republican Party controlling the House, Senate and White House provides a united, one party government that is viewed as being “pro-business,” it is likely that there will be favourable conditions for corporations. However, there is likely to still be infighting and, with the Trump administration bringing a brand of chaos to the political landscape, there are still set to be headaches for the industry.
Proposals like a 60 percent tariff on China are alarming for members of the airfreight industry, as; they would likely lead to higher inflation, counterproductive economic outcomes, and job losses in the United States.
“In our view, such measures would harm both the economy and the global trade environment, steering us toward a protectionist stance that ultimately does more harm than good,” Fried, explained.
“Savvy businesses right now are getting manufacturing done, getting it on a boat and into the United States, storing it in warehouses – taking advantage of the ramp-up time until the inauguration in January.
“Will he impose the tariffs? Who knows? But the reality is companies need to take him seriously. After all, he is going to be the President of the United States, so if he means businesses, we’re going to see actions.
“Even if he doesn’t fully impose what he’s threatening to do and backs down, industries are going to have to go and kiss the proverbial ring at the White House.”
Easing of tensions
Seeing the tariffs as an exception to the pro-trade vision of the Trump administration, AfA is optimistic that the incoming administration will look to ease geopolitical conflicts in the world, including in Ukraine, Israel and between China and Taiwan.
“We look out for American interests, and the reality is that, right now, our partners, air carriers, are at a disadvantage because they can’t fly over Russia, meaning travel takes longer and fuel costs are higher, making them less competitive,” Fried stated.
“US-driven sanctions have not been successful so far. Russia has actually done better when countries like India are still doing business with it, eliminating the impact of sanctions.
“Ultimately, Trump will approach this as he does anything else – as a business negotiation with take and give.”
Beyond these regions, the industry is looking at Southeast Asia, Mexico, Latin America, South America, shifting bases to regions that are on the rise.
“Part of being a successful business owner is mitigating risk, avoiding increased costs from challenges, such as the impact of doing business with tariffs hitting businesses,” Fried stated.
“It’s not going to be easy to shift away from China, as they’ve had many years head start, establishing manufacturing processes, factories, etc to become the world’s manufacturing hub.
“But people are looking for where the next wave will come from and how to respond as quickly as possible to that shift.”
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