WHILE the air cargo sector is no stranger to fluctuations, the current global market presents a particularly complex mix of resilience and risk. Uncertainty stemming from geopolitical tensions — such as tariff disputes — has left the industry operating in a state of heightened alert.

“This year has been a very interesting one, with a lot of uncertainties,” says Anindam Choudhury, Vice President – Commercial at TAM Group. “Q1 started very well, and then, at the beginning of Q2, we had a few uncertainties that came in with the tariff war and new geopolitical tensions. Now everybody is still in a wait-and-watch mode, wondering what is going to happen in the next few weeks or months. By the time this interview goes to print, the overall situation could have changed vastly.”

Still, the underlying strength of the market hasn’t wavered. “Business volumes have remained robust, with no significant dip. We expect the second half of the year to be even stronger. IATA forecasts global air cargo growth of about 5.8 percent for 2025, and we believe the outlook could be even more positive if major disruptions are avoided,” Choudhury notes.

This tempered optimism reflects a sector that has matured during years of volatility. Though external factors like trade wars or political shifts can impact airfreight routes and demand, the infrastructure — and expectations — are more robust than ever before. Operators have had to grow agile, responding quickly while keeping their long-term strategies intact.

Strategic Hotspots for Expansion

The enduring volatility in China and the emergence of the “China plus one” sourcing strategy have pushed supply chain planners to rethink geography — and Southeast Asia is reaping the benefits.

“This China plus one strategy has been in play for a while, right, since Covid-19 times,” explains Choudhury. “There has already been a shift, especially to Vietnam and some of the other neighbouring countries.”

TAM Group anticipated this early, establishing strategic hubs — both wholly owned and joint ventures — across Southeast Asia. “This positions us strongly for the current market dynamics.”

He points to the broader economic tailwinds supporting regional expansion. “E-commerce-driven supply chain shifts are expected to reach US$2.2 trillion by 2026, and this figure indicates the potential of the market.”

Recent business wins, such as being appointed by Air Canada Cargo in the Philippines, serve as proof of TAM’s regional strength. “Air Canada just launched their flight between Manila and Vancouver. Being appointed by a carrier like Air Canada is not only an honour but also a testament to our growth and our accomplishments in Southeast Asia right now.”

South America is also proving to be fertile ground. “There has been stable growth across many regions, but we anticipate significant growth to come from Southeast Asia and South America,” says Choudhury. “We now have three offices in South America with a pretty large presence in some of the offline markets.”

This dual focus is no accident. TAM Group has been methodically laying the groundwork to tap into rising demand. “We are one of the largest entities handling high-value shipments like cherries and salmon from South America to China. It happened in a very short time,” Choudhury notes proudly. “That’s how we are capitalising on the opportunities available with local expertise and our global footprint.”

Riding the Demand Curve

As the cargo mix evolves, e-commerce remains a core driver — even amid regulatory changes. “People will still continue to consume,” says Choudhury. “Although there are some shifts in tariffs, overall, I don’t think the strategy for e-commerce is going to change much. E-commerce players are still going very strong.”

His view is clear: it’s about riding the wave rather than resisting it. “We are constantly adapting to the market changes — basically riding the wave and going along with it.”

Pharmaceuticals are also on the radar. The complexity of this cargo type — and its importance post-Covid-19 — has placed new demands on operators. Choudhury highlights the need for tailored, value-driven approaches. “We follow a tailored approach for every carrier,” he says. “That’s what we have been doing in these markets.”

Digitisation is another pressure point for airfreight players. While many talk about AI, Choudhury is realistic. “We are actively exploring AI-enabled logistics, but full integration is a complex process involving extensive API development to ensure seamless communication between our systems and those of our airline partners.”

Even so, TAM Group is committed to the process. “We have implemented CRM software to manage sales and client interactions, and expect to complete our digital transformation within the next six to eight months.”

From Agents to Strategic Airline Partners

In today’s high-stakes cargo world, General Sales Agents (GSAs) are no longer just intermediaries or sales agents — they are expected to be full-fledged partners of airlines in local markets.

“Today, GSAs are an extension of the carrier in the market, and the role has shifted from a sales agent to a partner. Value delivery must be immediate and measurable. Our role now includes strategic partnerships, capacity management, and operational support — far beyond the traditional model of sales management.”

Asked about the ongoing debate over airlines insourcing versus outsourcing GSA services, Choudhury provides a balanced take. “Having worked on both sides, I believe a hybrid approach is most effective. For new markets, outsourcing to experienced GSAs like TAM Group allows airlines to hit the ground running. Our holistic approach covers sales, service, operations, finance, and regulatory compliance — delivering the comprehensive support our airline partners expect.”