News #129 - How air cargo adapts to a changing world

• The global air cargo industry is proving once again that it thrives in adversity. In one of the opening fireside chats at this year’s ACE Air Cargo Event, a panel of industry leaders delved into how the sector is responding to unprecedented challenges, from shifting trade dynamics and regulatory pressures to digital transformation and sustainability compliance.
• Moderated by Glyn Hughes, Director General of The International Air Cargo Association (TIACA), the panel included Turgut Erkeskin (President, FIATA), Khawla M M Abdulla (VP Cargo Commercial Europe, Emirates SkyCargo), Alain Guerin (Chief Commercial Officer, CMA CGM Air Cargo), and Alina Fetisova (Chief Associate Programme Officer, International Trade Centre).

The conversation opened with a recognition that the pace of disruption has accelerated.

“What was very interesting for us to observe this year is the pace of change and level of uncertainty, which is quite unprecedented,” said Fetisova. She cited shifts in trade routes, such as a dramatic drop in China–US exports but a surge in flows from China to the EU, including Hungary and the Netherlands.

Agility emerged as a central theme. “We had to be dynamic and had to serve routes that our customers wanted us to take,” said Emirates SkyCargo’s Khawla Abdullah. She described how Emirates had chartered 15 freighter flights for Pakistan’s mango season alone, moving over 3,000 tonnes to the UK—a rapid response to market demand.

But being agile isn’t just about aircraft. “We need to understand what’s happening in the global economy, understand the needs of the customers, and react immediately,” Guerin said. “This is when we earn value.”

Freight forwarders play an increasingly vital role in guiding shippers through this volatility. FIATA’s Turgut Erkeskin highlighted how his members help small and medium-sized businesses stay competitive by offering flexible multimodal solutions—air, sea, road, and rail—as demand, costs, and regulations shift. “We help them discover new markets and establish themselves there,” he said.

He also pointed to the evolving role of digitalisation and the gaps in global frameworks for multimodal operations. “Today we are able to move goods from China to Europe by trucks… particularly batteries, which airlines and shipping lines hesitate to handle,” Erkeskin explained. “Clients want alternatives. That’s where we come in.”

Regulatory uncertainty was another recurring concern. “We have unfortunately very fragmented security regions all around the world,” said Erkeskin. He called for greater harmonisation, particularly in customs and security procedures, to reduce costs and complexity across global supply chains.

Fetisova added that the WTO’s Trade Facilitation Agreement had delivered gains, such as $231 billion added to global trade and a 14 percent average cost reduction, but cautioned that deeper reforms and stronger regional coordination were still needed.

She also stressed the disproportionate impact of protectionist measures on SMEs. “They are often forced to withdraw products, raise prices, or lose access to markets,” she said. “This doesn’t just affect them—it affects entire ecosystems.”

Digitisation and sustainability were positioned not just as industry goals, but as necessities. Guerin emphasised that sustainability comes at a cost. “We need to factor it into our operation—it’s one of those costs eating into our margin,” he said, pointing to the financial implications of carbon pricing and SAF mandates. “Now when we go to sustainability conferences, we bring our finance team.”

The discussion closed with a call for collaboration. “Today we are suffering from fragmentation,” said Erkeskin. “Associations like TIACA, FIATA, and IATA must work together. We all face the same problems, and only together can we bring harmonisation.”

Source: https://aircargoweek.com/how-air-cargo-adapts-to-a-changing-world/

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