Through this month, we have seen potential for, and the effects of, disruption at North American hubs, which have had a tangible impact on the US market and air cargo community.
Natural disasters are always a test of resilience for the air cargo community; the effects of Hurricanes Helene and Milton are currently being felt across the US since tearing through Florida and other southeastern states.
Regional airports and cargo hubs saw grounded aircraft, delays and cancellations due to the extreme weather conditions, with closures causing freight bottlenecks.
Recovery efforts have been complicated by the loss of power as millions of residents in Florida were without power, and an estimated US$160 billion already in damages has been calculated statewide.
With trucking and airfreight logistics hampered, the importance of freight forwarders to maintain air cargo volumes through rerouting was brought to the fore.
Investment in infrastructure and systems will go a long way to allow recovery post-event, easing the pressure on airfreight to make up lost volumes; but there is only so much preparation possible, as opposed to the flexibility and adaptability of freight forwarders to navigate around impossible weather conditions.
Adding to this, just last month, a three-day strike ended uncomfortable uncertainty as the International Longshoremen’s Association (ILA) struck a tentative arrangement, agreeing not to strike again until January 2025 while negotiations continue with the Maritime Alliance.
This situation had the potential to paralyse logistics and cause lasting problems for supply chains in the build-up to the holiday season, which is already seeing high demand globally for capacity.
Our industry needs an open dialogue between the ILA, management, and the US government, as the vulnerability of supply chains can have a large impact on the economy: when conversations stall and mitigations are put in place with no concrete timeline.
On this occasion, the ILA has come to a temporary agreement, which means the East and Gulf Coast ports will remain operational until the end of Q4, which will give members of the Airforwarders Association respite in an already busy year.
