The airfreight landscape in the United States is currently influenced by a combination of factors, including recent labour strikes, ongoing geopolitical uncertainties, and the persistent growth of e-commerce. Additionally, the impending US elections and potential new tariffs on imports from China further complicate the market.
In terms of specific demand, there continues to be a strong need for perishables, as the US imports a significant amount of these goods from South America. For example, imports of salmon from Chile, flowers from Colombia, and various vegetables from Ecuador and Peru.
Capacity issues are also pressing. Aircraft manufacturers are currently facing challenges in delivering new freighters, a situation well-documented in various reports. With limited capacity, prices are inevitably rising, especially during peak seasons.
As such, the nature of the US market is inherently complex due to the multitude of actors and contacts involved, resulting in a very human-centred environment. This reliance on personal interactions complicates the shift toward digital solutions.
“There is ample room for improvement regarding transparency, visibility, and the adoption of digital products in the US airfreight industry. Although progress has been made, there remains much work to do,” Julian Triay, Sales Director – Payments Supply and Demand at WebCargo by Freightos, stated.
“Our goal is to enhance visibility through our digital platform. It offers not only real-time rates and capacity for bookings but also valuable information about shipping agents and carrier contacts. This wealth of information streamlines the shipping process and allows us to respond more effectively to customer needs.”
Innovation on the rise
In the airfreight industry, it’s crucial to be timely. If a company takes too long to respond without providing accurate details, clients might opt for alternative modes of transport due to cost or delays, or the information might be long outdated.
Digital tools are, therefore, vital for freight forwarders. They enable quicker access to the right information, helping provide accurate pricing and details to clients, which can significantly influence their decisions.
“When businesses have access to accurate information, they can make informed decisions, which is especially crucial in our industry,” Triay explained.
“When you face events like hurricanes, for example, shippers and freight forwarders need to quickly find alternative solutions. Doing that manually is almost impossible, but with the right tools and predictive capabilities, customers can be offered viable alternatives.
“We’re already seeing how this works on our end. When there’s a disruption—whether due to a geopolitical issue or a climate event—digital tools allow us to track changes in search behaviour for specific destinations.
“For example, we can observe spikes in search volumes for particular routes in response to these events. This data, in turn, can help us predict rising prices, which might happen the same day or over the next few days. This kind of insight is key to how digital solutions can enhance logistics,” Triay added.
Moving forward
Today, WebCargo by Freightos has managed to digitalise almost all goods on its platforms. From sensitive cargo, like moving human remains, to delicate freight, such as pharmaceutical products.
The challenge is not just with the commodities themselves but with the processes that have been in place for years. Many players in the industry are resistant to change because these manual systems have been working for them, albeit inefficiently.
“We are constantly advocating for new solutions that offer better transparency, visibility, and ultimately improve productivity, yield, and overall service quality,” Triary expressed. “However, overcoming this conservatism is not easy, but with better tools, we can help streamline the process and make it easier for everyone involved.”
