Friday, April 25, 2025

IATA highlights air cargo’s crucial role in global supply chains

The International Air Transport Association (IATA) has underscored the indispensable role of air cargo in maintaining the resilience of global supply chains. Speaking at the 18th World Cargo Symposium (WCS) in Dubai, UAE, Brendan Sullivan, IATA’s Global Head of Cargo, called upon governments and the industry to prioritize the fundamental expectations of customers: robust safety and security, accelerated digitalization, and a firm commitment to sustainability.

Sullivan emphasized, “Whether facilitating international trade, powering e-commerce, or delivering critical humanitarian aid, the inherent value of air cargo has never been more evident. To consistently meet evolving customer demands and navigate an increasingly complex global landscape, the air cargo industry must relentlessly strengthen its safety and security protocols, expedite the adoption of digital solutions, and actively deliver on its sustainability pledges.”

Safety: Achieving Zero Tolerance for Non-Compliant Shippers

Safety remains the paramount concern for the air transport sector, with a particular emphasis in air cargo on the secure transportation of lithium batteries. IATA is urging governments to intensify their efforts in preventing rogue shippers and to actively support the International Civil Aviation Organization’s (ICAO) work to reinforce Annex 18 of the Chicago Convention – the globally recognized framework governing the safe carriage of dangerous goods by air.

“The volume of lithium battery shipments is steadily increasing. This growth inherently brings heightened risks associated with undeclared or mis-declared cargo. While the industry has invested significantly in training, certification, and technological advancements, governments must match this commitment with rigorous oversight and effective enforcement measures,” stated Sullivan.

Security: Advocating for Coordinated, Risk-Based Measures

Following recent incidents involving concealed incendiary devices within shipments, IATA has reiterated its appeal to governments for a coordinated and risk-based approach to air cargo security. Despite some states implementing new security measures, the lack of global harmonization has resulted in inconsistent outcomes. This situation underscores the critical need for aligned responses based on universally accepted standards.

“Recent security breaches clearly demonstrate the urgent need for enhanced coordination among governments. Aviation security cannot be effectively built upon fragmented or reactive measures. Global standards and robust cooperation are indispensable,” asserted Sullivan.

Furthermore, IATA renewed its call for states to fulfill their obligations under Annex 17 by sharing timely and accurate threat intelligence, which is crucial for enabling informed risk assessments and operational decision-making within the industry.

“The air cargo industry possesses an intimate understanding of its operations and the associated safety and security risks. However, governments command significantly greater resources, particularly in intelligence gathering. Optimal outcomes are achieved when governments and industry stakeholders work collaboratively,” Sullivan emphasized.

Digitalization: Accelerating Industry-Wide Adoption of ONE Record

IATA reaffirmed the pivotal role of ONE Record as the industry’s standardized platform for end-to-end digital data exchange. This initiative is crucial for enhancing efficiency, improving compliance, and fostering greater transparency across the air cargo value chain. The industry has set a clear objective: to establish ONE Record as the preferred method for data sharing by January 2026. To expedite its widespread adoption, IATA strongly urged:

  • Airlines and freight forwarders to actively advance their implementation efforts.
  • Governments to formally recognize ONE Record within their regulatory data filing requirements.
  • Technology developers to build secure, open, and interoperable digital platforms.

“ONE Record represents a fundamental shift in how we share, manage, and establish trust in data throughout the supply chain. Airlines representing 72% of global air waybill volume are on track for implementation. Moreover, over 100 IT providers and 10,000 freight forwarders have already aligned with this standard. To fully realize its potential, adoption must accelerate across all stakeholders, and governments must integrate ONE Record into their regulatory frameworks,” explained Sullivan.

Sustainability: Strong Commitment, Urgent SAF Support Needed

The air cargo industry is actively integrating sustainability into its operations through increasing efforts to minimize waste, implement circular economy practices, and phase out single-use plastics. For instance, IATA’s guidelines aimed at eliminating single-use plastics across the cargo supply chain are now reflected in operational standards.

Significant progress is also being made in addressing the sector’s most substantial environmental challenge: reducing carbon emissions. Momentum surrounding Sustainable Aviation Fuel (SAF) is growing, with new collaborations emerging across the value chain and an increasing number of companies committing to SAF utilization. The recently launched SAF Registry, operated by CADO, is designed to facilitate a global market for SAF and accelerate the industry’s transition towards net-zero emissions by 2050. Additionally, IATA will soon introduce CO2 Connect for Cargo to support accurate emissions calculation and reporting, including the tracking of SAF usage.

However, the current volumes of SAF remain significantly below the required levels, and production costs remain prohibitively high. IATA urgently called upon governments to implement supportive policy frameworks to scale up SAF production and drive down costs.

“Our commitment to achieving net-zero carbon emissions by 2050 is unwavering. However, the progress in scaling up SAF – our most potent tool – has been disappointing. Major fuel producers have been slow to act or have sidelined planned investments in SAF. Aircraft manufacturers have revised their medium-term commitments for delivering CO2-reducing technologies such as hydrogen-powered aircraft. Furthermore, governments have not provided the necessary policy support, despite having successful models from the wind and solar energy sectors. Instead, they are sending contradictory signals by subsidizing fossil fuel extraction while simultaneously aiming for net-zero. Airlines are committed and determined, but we cannot achieve this alone. We need concrete action from regulators, fuel suppliers, and manufacturers that aligns with their stated ambitions,” urged Sullivan.

Navigating Trade Tensions

Amid escalating global trade tensions, IATA reiterated its firm belief that trade is a fundamental driver of prosperity and that any measures hindering the free flow of goods ultimately harm businesses, consumers, and overall economic well-being.

“Current trade tensions are a significant concern. Trade fuels prosperity. Increased global trade benefits everyone. Therefore, regardless of how current trade disputes are resolved, we know that air cargo will continue to play its vital role in delivering the goods that people and businesses need and desire,” concluded Sullivan.

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