Air Freight Industry Faces Challenges Amid Growth Opportunities

This article explores the current key trends and challenges in the air freight industry. It analyzes market volumes and service conditions, the impact of tariff policies, the shortage of FAA air traffic controllers, and the outlook for the peak season in 2025. By gaining insights from industry experts, it highlights new opportunities for future development.
Air Freight Industry Faces Challenges Amid Growth Opportunities

In today's fast-changing logistics environment, the air cargo industry faces unprecedented challenges and opportunities. As global market demands shift, technology advances, and policies adjust, air freight has become not only a critical component of corporate supply chain management but also a key driver of international trade and economic growth. Industry expert Brandon Fried recently explored the current state of air cargo and logistics in a podcast, analyzing key trends from freight volumes to service quality.

Market Recovery Amid Ongoing Challenges

Fried noted that while the air cargo market remains fundamentally strong, it continues to experience fluctuations. Although the global economy faced short-term disruptions due to the pandemic, vaccination rollouts and economic recovery efforts have gradually revived air freight demand. Many businesses that initially hesitated have now resumed cross-border trade activities, helping volumes rebound toward pre-pandemic levels.

However, companies still face complex tariff policies when choosing air freight. Fried analyzed U.S. tariffs imposed on multiple countries and their potential impact on the industry. He emphasized that tariffs not only alter trade flows but also introduce new cost-control challenges. In an increasingly complex global supply chain network, businesses must carefully reassess cost-benefit calculations to maintain competitiveness.

Operational Hurdles: Staffing Shortages and Efficiency Concerns

Fried also highlighted the Federal Aviation Administration's (FAA) air traffic controller shortage as a critical issue affecting the industry. With air traffic rebounding, flight efficiency has become paramount, and staffing gaps could lead to delays that undermine cargo reliability. While companies anticipate higher freight volumes, they must also monitor flight schedule stability to optimize operational planning.

Optimism for 2025 and Beyond

Looking ahead to the 2025 peak season, Fried expressed optimism about the industry's prospects. Despite current complexities, he believes adaptation and technological innovation will unlock new opportunities. He urged express carriers and freight forwarders to enhance service quality and efficiency—particularly through artificial intelligence and data analytics—to better manage capacity and meet rising customer expectations during high-demand periods.

A Veteran's Perspective on Industry Advancement

With over 40 years of experience, Fried serves as Executive Director of the Airforwarders Association and participates in multiple federal advisory committees, including the Transportation Security Administration's Aviation Security Advisory Committee. His leadership has helped shape air cargo safety regulations and industry standards.

After selling his freight company in 2005, Fried dedicated himself to advocating for freight forwarders' interests. His work has strengthened industry collaboration and policy engagement, driving progress toward greater efficiency and standardization. In Washington, he is recognized as the public face of the air forwarding sector, testifying before Congress and collaborating with agencies like the Department of Homeland Security to influence policy.

The Path Forward: Innovation and Adaptation

The air cargo industry's challenges demand flexibility and innovation from all participants. While global economic and political uncertainties persist, positive trends and expert insights offer hope. Fried's emphasis on collaboration and elevated standards provides a roadmap for sustainable growth.

E-commerce growth and rising consumer expectations for faster deliveries are reshaping the industry. To compete, carriers and forwarders must develop innovative solutions while controlling costs. By leveraging technology to predict demand and optimize operations, companies can secure a competitive edge.

Market analysis, policy awareness, and industry cooperation will be essential to navigating current challenges and capitalizing on future opportunities. Talent development is equally crucial—especially in adopting new technologies—to ensure the next generation of professionals can drive the industry forward.

Ultimately, the air cargo sector's evolution impacts broader economic recovery and societal connectivity. Every participant in this supply chain revolution must stay attuned to market trends and technological advancements to overcome challenges and seize emerging opportunities.