Air cargo has been operating at full steam, playing a vital role in keeping global supply chains moving amidst ongoing challenges. Freight Newsfeatures editor Liesl Venter spoke to Glyn Hughes, director general of The International Air Cargo Association (Tiaca), to gain insights into the key trends, challenges and opportunities shaping the future of airfreight in 2025.LV:What are the most significant trends expected to shape the airfreight industry in the coming year?GH: A great question. I believe three key trends will inf luence air cargo over the next 12 months. Firstly, US trade policy will play a significant role, with the imposition of tariffs by incoming President Trump being a certainty. The economic impact remains uncertain. US consumers may reduce consumption as prices rise or we could see shifts in manufacturing bases and supply chains that might actually boost air cargo demand.Finally, e-commerce continues to be a major driver. Even with the rapid growth in recent years, it is likely there is still more to come. LV:What are the primary risks, disruptions or challenges expected to impact the airfreight industry in 2025?GH: As mentioned, US trade policy could introduce inf lationary pressures that may dampen consumer activity, but only time will tell. What we can foresee, however, is that the tight capacity situation experienced in 2024 may persist. This issue could become even more pronounced if scheduled aircraft deliveries are delayed, especially since some aircraft retirements have already been deferred.LV:What has the industry learned from the challenges of recent years, such as the pandemic and ongoing geopolitical tensions?GH: The industry has made significant strides in technology integration, with a stronger emphasis on data sharing and digital communication. Processes across the board, from product and rate distribution to ramp and inf light shipment monitoring, disruption management and claims have all seen steady progress. LV:How has the airfreight industry adapted to past challenges related to capacity, demand and pricing? What shifts or strategies do you anticipate in these areas for 2025?GH: I expect the capacity constraints to persist over the next 12 months. One of the key lessons from the past year has been the importance of early, regular and transparent communication between shippers, forwarders and airlines. These open channels will help smooth out supply chain wrinkles and help effective asset planning and utilisation. LV:Sustainability remains a key strategic focus for the airfreight sector. What specific initiatives or goals are on the agenda for 2025, and how do you see them shaping the industry’s future?GH: Sustainability has rapidly evolved from a seldom-discussed buzzword to a central element of strategic planning. This momentum will continue through 2025, with a strong focus on environmental priorities. These include the introduction of mandatory Sustainable Aviation Fuel (SAF) blending requirements in some regions and increasing customer demand for greener supply chains. Workforce development will also take centre stage, emphasising multigenerational engagement, inclusivity and diversity. Additionally, improving efficiency and utilisation will be critical.LV:Are there any regulatory changes on the horizon that the industry needs to prepare for?GH: US trade policy changes, including potential adjustments to the de minimis level applied to US imports, are expected. Additionally, safety and security policies will likely remain under scrutiny, with new regulations introduced in response to evolving risk assessments.LV:Are there key regions or trade lanes where airfreight infrastructure investments are expected to grow? GH: It’s encouraging to see that many airports and ground handlers across the global network are investing in cargo facilities. These range from cool chain and perishable centres to automated sorting hubs to support e-commerce. Technology and automation are set to drive significant efficiency gains and will be crucial in addressing the expected growth in demand.LV:What is your outlook for 2025 for the airfreight sector, particularly in Africa?GH: I’m very bullish about the sector overall, with air cargo demand expected to outpace global GDP growth. While we likely won’t see the double-digit month-over-month growth rates of 2024, we’re still on a positive upward trajectory. Africa, with its young and increasingly tech-savvy workforce, should experience growth in e-commerce. With GDP expected to grow by 3-4% across the continent, air cargo growth should follow a similar path. However, there are still significant challenges across Africa that hinder air cargo and broader economic growth. Issues like high taxation, fuel costs, border complexities, restrictive transport practices and the not yet fully implemented African Continental Free Trade Area (AfCFTA) continue to pose obstacles for air cargo and trade in general. LV
