Geopolitical shocks pose the greatest threat to supply chain health

May 22, 2024

Geopolitics is the greatest risk facing forwarders and the air freight industry in 2024 – despite the potential for disruption to boost air cargo.

Political crises were the number one concern, agreed delegates at the ACE air freight forwarding event in Abu Dhabi yesterday.

“Geopolitical tensions are affecting our business,” said Turgut Erkeskin, president of FIATA.

“The India-Middle East-Europe corridor was under discussion before the Israel crisis – that is now not possible. There have been impactful shocks to the supply chain which have affected logistics.”

But while supply chain disruption can often boost air freight, Glyn Hughes, director general of Tiaca, argued that the health of all sectors was more important.

“As ocean schedule reliability goes down, the air cargo price goes up; when there is disruption in maritime, it is better for air cargo. But we need a more robust maritime sector because the global economy needs it.

“Air accounts for only about 1% of global trade, so it’s crucial for the long-term sustainability of the global economy that the maritime sector works.”

 

Read more at theloadstar.com

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