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IATA: Air Cargo Key to Supply Chain Resilience

15 April 2025

Dubai – The International Air Transport Association (IATA) emphasized 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, digitalization 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 digitalization, 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, UAE.

Safety: Zero Tolerance for Rogue Shippers

Safety is the top priority for air transport and in the case of air cargo the specific focus is on the safe transport of lithium batteries. IATA calls on government to step up efforts to stop rogue shippers and support ICAO’s work to strengthen Annex 18 of the Chicago Convention—the global framework for the safe transport of dangerous goods by air.

“Shipments of lithium batteries are growing in volume. With that come increased risks associated with undeclared or mis-declared goods. The industry has invested in training, certification, and technology. Governments must match that commitment with robust oversight and enforcement,” said Sullivan.

Security: The Need for Coordinated, Risk-Based Measures

IATA reinforced calls to governments for a coordinated, risk-based approach to air cargo security following recent incidents involving incendiary devices concealed in shipments. While some states implemented new measures, the lack of alignment led to inconsistent outcomes. This situation reinforces the importance of harmonized responses based on global standards.

“Recent security incidents highlight the need for better coordination among governments. Aviation security cannot be built on fragmented or reactionary measures. Global standards and cooperation are essential,” said Sullivan.

IATA also renewed its call to states to fulfill their Annex 17 obligations by sharing timely and accurate threat intelligence to enable informed risk assessments and operational decisions.

“The industry is best placed to understand its operations and the associated safety and security risks. But governments have infinitely more resources, particularly in intelligence gathering. The best results come when governments and industry work together,” said Sullivan.

Digitalization: Accelerating Industry-Wide Adoption of ONE Record

IATA reinforced the central role of ONE Record as the industry’s standard for end-to-end digital data exchange, supporting improved efficiency, compliance, and transparency. The industry’s goal is clear: by January 2026, ONE Record will become the preferred method of sharing data. To accelerate industry adoption IATA urged:

  • Airlines and forwarders to move forward with implementation
  • Governments to recognize ONE Record in regulatory data filing requirements
  • Developers to build secure, open, and compatible digital platforms

“ONE Record is a foundational shift in how we share, manage, and trust data across the supply chain. Airlines representing 72% of global air waybill volume are on track to implement it. More than 100 IT providers and 10,000 freight forwarders are already aligned. To achieve full value, implementation must accelerate across all stakeholders, and governments must recognize ONE Record in their regulatory frameworks,” said Sullivan.

Sustainability: Commitment Strong, SAF Support Needed
The air cargo industry continues to embed sustainability into its operations, with growing efforts to reduce waste, implement circular practices, and phase out single-use plastics. For example, IATA guidance to eliminate single-use plastics across the cargo supply chain is now reflected in operational standards.

Progress is also being made on the sector’s largest environmental challenge—reducing carbon emissions. Momentum around Sustainable Aviation Fuel (SAF) is growing, with new agreements across the value chain and more companies committing to SAF use. The SAF Registry, recently launched and operated by CADO, is designed to enable a global market for Sustainable Aviation Fuel (SAF) and accelerate the industry’s transition to net-zero emissions by 2050. In addition, IATA will soon launch CO2 Connect for Cargo to support accurate emissions calculation and reporting, including SAF usage.

However, SAF volumes remain far below what is needed, and production costs remain high. IATA urged governments to implement policy frameworks to scale up SAF production and reduce costs.

“We are committed to net zero carbon emissions by 2050. But the ramp-up of SAF—our strongest lever—has been disappointing. The major fuel producers have been slow-walking—or sidelining—planned investments in SAF. Aircraft manufacturers have backed off their commitments for medium-term delivery of CO2 saving products such as hydrogen-powered aircraft. And governments have not provided the policy support needed, even though they have a playbook at hand with how the wind and solar energy industries expanded. Instead, they send mixed signals by subsidizing fossil fuel extraction while aiming for net zero. Airlines are committed and determined but we cannot do it alone. We need action behind the words of regulators, fuel suppliers and manufacturers,” said Sullivan.

Trade Tensions

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,” said Sullivan.

 

 

China-US tonnages down but rates up ahead of tariffs

By Damian BrettDamian Brett11 April 2025

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The latest statistics from data provider WorldACD show that airfreight demand out of China and Hong Kong to the US declined slightly last week while rates increased.

Figures from WorldACD show that in the week running to 6 April (week 14) demand from China and Hong Kong fell by 1% week on week for the first time since the start of the year, although volumes remain 3% higher than the same week a year ago.

Demand out of Asia Pacific as a whole was down by around 7% week on week.

Meanwhile, pricing ex-Asia Pacific jumped 4% week on week with the average spot rate out of the region going up 5%, to $3.94 per kg.

Overall air cargo demand across the globe also weakened in week 14, with WorldACD stats showing a 7% week-on-week decline.

The data firm said half of this decline reflected the Eid holidays at the end of Ramadan, while the other half reflects “worldwide uncertainty over a trade war triggered by the latest wave of US tariffs and the removal of US de minimis exemptions for shipments from China and Hong Kong”.

Compared with last year, demand is up 6%.

World ACD April 11 2025

WorldACD

On the pricing front, average rates out of every region were also on the rise, apart from Central and South America, climbing 2% on last week to $2.52 per kg. Against a year ago, prices are up 2.9%.

However, WorldACD said the situation could change in the coming weeks due to the trade war between China and the US that will see Washington implement tariffs of 145% on imports from China and Beijing respond with its own 125% rate.

The US also put on hold tariffs to several other countries for 90 days.

“As the new US tariffs that have not been put on hold for 90 days came into effect on Wednesday, 9 April, the impact is expected to be more clearly visible on certain trade flows in next week’s report,” WorldACD said.