IATA: Trade Tensions Trigger Air Cargo Turbulence

DALLAS — The International Air Transport Association (IATA) has issued a red  alert regarding the escalating trade tensions during the opening of the World Cargo Symposium (WCS) held in Dubai.

Sullivan’s warning comes as tensions reemerge regarding proposed tariffs between the US and key trading partners. The ripple effects are expected across logistics, especially for industries reliant on time-sensitive shipments like electronics, pharmaceuticals, and high-value goods.

As reported by aviationbusinessnews.com, Brendan Sullivan, IATA’s Global Head of Cargo, highlighted the tensions that jeopardize the stability and growth of the air cargo sector, a crucial component of global supply chains and e-commerce, which has played a vital role in helping the economy recover post-pandemic.

Recent months have witnessed a surge in trade disputes between the two world powers, the US and China. The White House has proposed successive tariff hikes and is advocating reciprocal tariffs globally. These unpredictable and sudden tariff increases followed by selected pauses have created uncertainty in the air and shipping cargo sectors.

E-commerce plays a significant role in boosting recent cargo growth worldwide but is also under immense pressure, as the US has suspended tax exemptions on certain low-value Chinese shipments, and a new tariff system will further worsen the current situation.

Sullivan stated, “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.”

Despite the challenges, IATA remains committed to uplifting the industry through innovation and advocacy. The association is urging governments to avoid protectionist measures and instead foster an environment that supports open trade and supply chain resilience. The discussions and policies addressed in WCS 2025 are expected to shape the future of the air cargo sector.

Strengthening Safety Protocols

The transportation of hazardous goods, particularly lithium batteries, was a key issue raised at the WCS regarding shipment safety. The rise in undeclared or misdeclared shipments has increased risks to passenger operations. Following a meeting in Hong Kong, there was a call for governments to strengthen oversight and enforcement in accordance with Annex 18 of the Chicago Convention.

Sullivan stated that the industry has taken a leading role in training, certification, and detection technology. However, there is a caveat: these efforts must not become empty exercises that necessitate government intervention. “We have a zero-tolerance policy for rogue shippers. We must hold governments to that standard with strong regulations and inspections,” he added.

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Continued incidents of incendiary devices in cargo shipments have highlighted the fragmented nature of air cargo security measures across different states. “We need a careful, coordinated, risk-based approach, not knee-jerk policy-making,” said IATA. Disparate regulations, the Association contends, cause confusion, delays, and erode protections.

The organization reiterated its call for states to return to their obligations under Annex 17 by sharing threat intelligence as it occurs. “The best solution will come when governments and industry work together,” Sullivan said. We cannot base aviation security on patched measures.”

Fast-Tracking Digitalization: The ONE Record Push

Digital transformation remains a priority for IATA. The Association is spearheading initiatives to unify the industry around the implementation of ONE Record. IATA has urged stakeholders to expedite the rollout of the 2026 cuts, with the deadline for these cuts scheduled for January 2026.

ONE Record aims to simplify information exchange, enhance compliance, and increase transparency throughout the global air freight chain. By early 2025, airlines representing 72% of global airway bill volume will have signed on. The initiative has gained momentum across the ecosystem, with over 100 IT providers and 10,000 freight forwarders participating.

Stakeholder Group: Airlines (by AWB volume)

• Current Participation: 72%

Stakeholder Group: IT Providers

• Current Participation: 100+

Stakeholder Group: Freight Forwarders

• Current Participation: 10,000+

Stakeholder Group: Government Integration

• Current Participation: In Progress

Sullivan urged airlines, freight forwarders, and IT developers not to lose momentum on the standard and said he would lobby governments to enshrine it in their regulatory frameworks.

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