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US FORWARDERS SEEK INVESTMENTS IN AIR CARGO
October 19, 2022

The Airforwarders Association (AfA) and the National Customs Brokers and Forwarders Association of America (NCBFAA) are calling for urgent government investments to develop air cargo infrastructure and systems at US airports.

 

The proposals are part of a whitepaper that was produced after the organizations conducted a major national survey of 400 stakeholders in the public and private sectors who deal with air cargo, identifying the key problems and the airports where the obstacles are the greatest.

 

The whitepaper, entitled "Safeguarding the Future of Air Cargo: Its Economic and Critical Need Investment," called for a state or federal-backed "Air Cargo Support Fund" to tackle what it deemed as an "infrastructural crisis" facing the US air cargo industry.

 

"With airports and airlines experiencing substantial revenue shortfalls over the past two years, the situation is becoming critical with potentially severe impacts on the economy and jobs throughout the country," said Brandon Fried, executive director, AfA.

 

Fried noted that because of the lagging financials, airports will be allocating the monies of the Infrastructure Act to passengers, security, and safety, leaving insufficient funds to sustain air cargo operations.

 

"Additional funding, specifically dedicated to air cargo, is urgently needed," the AfA executive said.

 

The whitepaper warned that the negative fallout from a lack of investment could include job losses, as well as delays in shipping time-sensitive products by air, and higher costs to all elements of the logistics chain from shipper to buyer.

 

"The findings in the whitepaper demonstrate major concern from both NCBFAA and AfA members," said Donna Mullins, vice president, Kale Info Solutions, and Air Freight Subcommittee Chair, NCBFAA.

 

"We have worked hard to present clear recommendations but these will come at a cost and it is vital that the US$25 billion that airports will receive by way of the Infrastructure Act is allocated across all areas of airport development," Mullins added.

 

The recommendations include implementing airport community systems, encouraging better recruitment and retention through improved compensation packages, and a new industry-wide training program.

 

AfA and NCBFAA warned that Failure by the US legislature to act on its recommendations risks escalating costs for modernization of airport facilities and infrastructure; continued adverse environmental impacts; industry consolidations and overall job loss; and higher costs to all elements of the logistics chain from shipper to buyer.

 

It also noted that inaction would cause a continued inability to meet "anomalous challenges", such as the global pandemic.

 

The Infrastructure Act is a US bill which includes the largest federal investment in public transit in history. The bill includes spending figures of US$105 billion dollars in public transport.

 

Airports, meanwhile, received US$25 billion in the Bill, without any specific allocation or requirement that funds be used for air cargo area development.

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