A number of challenges remained foremost on the airfreight forwarder agenda throughout 2008 as the industry grappled with weakening economic demand, high fuel surcharges and the first year of implementing federally mandated passenger plane cargo screening.
Those forwarders offering less expensive air and surface transportation alternatives were rewarded by shippers yearning to save money and preserve profits.
Forwarders, through innovation and flexibility, dealt nimbly with the changing dynamics of 2008. While U.S. airfreight shipping volume decreased, many domestic forwarders entered international markets as their customers expanded globally, assisted by a weak dollar creating a demand for U.S. products.
Now as the dollar strengthens, members may face the challenge of reduced export traffic in the months ahead as U.S. goods become more expensive for foreign buyers.
As 2008 drew to a close, the reduction in global gas demand reduced airline fuel surcharges, resulting in forwarders controlling costs for themselves and shippers. Forwarders are reporting less demand for overnight shipping and more requests for deferred money-saving transport.
Looking ahead to 2009 presents yet another set of issues forwarders must confront to be successful in a new regulatory environment.
In February, forwarders will experience the first milestone on the road to cargo screening with 50 percent of all cargo checked before boarding passenger flights. Industry stakeholders share a sense of urgency and concern as the Certified Cargo Screening Program promises to spread the screening task into the supply chain. The initiative serves as the cornerstone of the 100 percent mandate and provides numerous screening options, including forwarders and their shipping customers, independent screening facilities, 3PLs, truckers and the airlines.
The objective is to create a competitive commercial environment where regulated entities screen cargo efficiently outside the airport, thereby reducing delays, costs and damage.
The program hopes to alleviate bottlenecks due to inadequate airport facility space and inefficient handling resulting in service failures and a slowing of commerce.