American airfreight trends

American airfreight trends

American airfreight demand in the Americas continues to be dynamic, primarily fuelled by the rise of e-commerce and shifting global supply chains. Platforms like Temu and Shein have notably increased inbound volumes from Asia, particularly China, as consumers seek fast, affordable goods. 

However, exports are also experiencing notable changes, particularly in sectors like high-value goods and perishables, driven by global demand for US products. Regulatory scrutiny is increasing, especially concerning compliance for non-dutiable products and complex export documentation. 

As the sector looks ahead to 2024 and beyond, it is anticipated that regulatory pressures will intensify, requiring operators to adapt swiftly. Additionally, the recovery of capacity on routes from the U.S. to China remains slow, with many U.S. Passenger carriers not yet returning to pre-Covid-19 levels, further complicating the landscape for American exporters.

“The main airfreight trade lanes in the Americas remain centred on transpacific routes, particularly those linking the U.S. with China and other Asian markets, primarily driven by e-commerce demand,” Graham Burford, CEO of American Worldwide Agencies, stated.

“However, there has also a notable increase in export activity, with high-value goods and technology products being key drivers. Capacity constraints on transatlantic lanes have prompted a shift towards Asia, underscoring the need for balanced strategies to support both import and export growth. 

“Export lanes to Europe, Latin America, and emerging markets in Africa are evolving, with specialised handling and niche markets, such as pharmaceuticals and high-value electronics, requiring tailored logistics solutions. Regulatory compliance, particularly with new security measures and export controls, is an emerging challenge that will shape the evolution of these lanes.”

Driving segments

AWA has implemented a range of operational enhancements to meet evolving industry demands, including advanced booking integrations with airlines, improved capacity management, and streamlined warehouse processes. 

For exports, the company has bolstered its documentation and compliance services to meet stringent international requirements, reducing delays and ensuring smooth customs clearance. 

The adoption of end-to-end barcode scanning, automated weight and dimension capture systems, and real-time tracking technology through CargoWise has significantly improved efficiency, especially for export shipments where accuracy in documentation and visibility is critical. These innovations have reduced manual errors, enhanced cargo visibility, and provided our clients with timely updates, which are particularly valuable for sensitive export cargo.

“High-value consumer electronics, aircraft parts, dangerous goods and pharmaceuticals continue to be significant growth drivers. However, the export side is also experiencing an uptick in demand for our consolidation services to Australia, New Zealand, Hawaii and the South Pacific,” Burford explained. 

“Some of these exports require specialised handling, cold chain capabilities, and rapid transit times to maintain product integrity. Additionally, high-value industrial components, machinery, and automotive parts are increasingly prominent in our export portfolio, driven by global supply chain diversification and the reshoring of manufacturing in North America. Our investments in specialised handling processes, and compliance enhancements have positioned us to capture a larger share of these growing export markets.”

Impact and innovation

The airfreight industry is under growing pressure to address environmental concerns, with airlines increasingly committing to Sustainable Aviation Fuel (SAF) initiatives and carbon offset programs. While these efforts are commendable, their adoption in the air transportation sector faces significant barriers, including high costs, limited availability, and resistance from clients to absorb the additional expenses associated with greener logistics. 

“The challenge for shippers lies in balancing the push towards sustainability with the need to maintain cost-effective operations,” Burford highlighted. “As industry leaders, we must continue advocating for sustainable practices, exploring alternative solutions, and engaging with clients to promote shared responsibility for environmental impacts, though participation in cost-sharing initiatives for SAF remains limited.”

Alongside its environmental actions, AWA has focused on technological innovation, greatly enhancing cargo visibility and tracking. The company’s comprehensive barcode scanning for all air and sea cargo, combined with automated weight and dimension capturing technology, provides unparalleled accuracy and efficiency. 

“These innovations ensure compliance with international standards, enhance transparency and reduce the risk of delays due to miscommunication or errors,” Burford stated. 

“Real-time tracking capabilities enable our customers to monitor their shipments from origin to destination, providing peace of mind and setting a new industry standard for export logistics. This commitment to innovation underscores our dedication to delivering superior service and maintaining a competitive edge in the global market.”

Picture of Edward Hardy

Edward Hardy

Having become a journalist after university, Edward Hardy has been a reporter and editor at some of the world's leading publications and news sites. In 2022, he became Air Cargo Week's Editor. Got news to share? Contact me on Edward.Hardy@AirCargoWeek.com

Newsletter

Stay informed. Stay ahead. To get the latest air cargo news and industry trends delivered directly to your inbox, sign up now!

related articles

Raya Airways launches new route from Penang to Hong Kong

Skyborne soars with DHL Air UK partnership

What’s behind Asia’s growth?