Global trade drives prosperity, and any measures undermining the free flow of goods ultimately hurt businesses, consumers, and economies worldwide.Obviously, tariffs and trade barriers decrease global trade flows. Trade tensions, especially between the top two global economies the United States and China and among other major economies, often lead to tariffs and trade barriers, which in turn reduce international trade volumes.Less trade means less demand for air cargo services. For instance, the ongoing US-China trade war has already led to a measurable drop in air freight demand on transpacific routes.Air cargo has always played a key role in maintaining global supply chain resilience.On an average day, 180,000 tonnes of goods reach their destination by air, according to the global body of airlines – the International Air Transport Association (IATA). This is the lifeblood of global trade — driving growth, creating jobs, and spreading prosperity.IATA has emphasised the vital role of air cargo in maintaining global supply chain resilience and called on governments and industry to remain focused on delivering the fundamental expectations of customers — safety and security, digitalisation and sustainability.“Whether supporting global trade, enabling e-commerce, or delivering vital humanitarian aid, the value of air cargo has never been clearer. To meet customer expectations and navigate an increasingly complex environment, the air cargo industry must continuously strengthen safety and security, fast-track digitalisation, and deliver on its sustainability commitments,” said Brendan Sullivan, IATA’s Global Head of Cargo at the opening of the 18th World Cargo Symposium (WCS) in Dubai recently.Amid growing trade tensions, IATA reinforced its position that trade drives prosperity, and that any measures undermining the free flow of goods ultimately hurt businesses, consumers, and economies.“Current trade tensions are deeply concerning. Trade drives prosperity. The more the world trades, the better off, we all are. So, whatever the resolution of current trade tensions is, we know that air cargo will be there to deliver the goods people need and want. And to do that it is critical that we remain focused on the fundamental expectations of our customers — that we are safe, operate with modernised processes and are driving towards sustainability,” said Sullivan.Industry experts say trade tensions create an environment of uncertainty, which discourages companies from committing to large shipping contracts or investing in long-term logistics solutions.Airlines may delay expanding cargo fleets or routes due to unpredictable demand.High-value, time-sensitive goods (like electronics, pharmaceuticals) are often shipped by air. These sectors are particularly sensitive to tariffs and disruptions.For example, if smartphone manufacturers face tariffs, they are very likely to cut production — and fewer units are flown globally. Also, there have been reports that some major international companies are contemplating on shift supply chains to avoid tariffs, increasing complexity and cost of logistics.Ultimately, this will lead to less efficient routing for air cargo, higher costs, and sometimes delays, as hubs shift.Undoubtedly, trade tensions are reshaping global logistics. Improving the air cargo industry’s prospects amid the ongoing or future trade tensions requires both industry-level strategies and governmental or policy support.To protect and grow the air cargo industry, stakeholders must adopt forward-thinking strategies that enhance agility, reduce exposure to geopolitical risks, and leverage emerging opportunities.Industry experts suggest deployment of real-time tracking, blockchain for documentation, and AI-powered demand forecasting. They propose working with manufacturers and logistics providers to implement multi-sourcing, nearshoring, and inventory diversification.Digitisation improves reliability and customer confidence, especially during disruptions. Targeted digital tools can meet the specific needs of specialised cargo while supporting the broader vision of a fully digital, connected supply chain.Therefore, greater investment in digital tools is required.Another suggestion is the development of alternative air routes to avoid reliance on politically volatile lanes.n Pratap John is Business Editorat Gulf Times. X handle:@PratapJohn.
