Airforwarders Association members view the upcoming year with general optimism but with the understanding that potential headwinds including higher fuel costs, increasing interest rates, and import tariffs could adversely impact cargo volumes in the upcoming months. Air cargo volumes have decreased compared to 2017, but on average, the industry showed positive results in 2018, keeping pace with the robust economy despite forwarders having to deal with the truck driver shortage and significant airport cargo truck congestion here in the US.
Recently, in one of the most impassioned midterm elections we have seen in recent history, the Democrats seized control of the House of Representatives by a convincing margin. As a result, our industry can expect to see the House majority begin to question the Trump administration's oversight of the Transportation Security Administration and the US Customs and Border Protection agencies. We expect to be called to appear before Congress again as cargo-related issues come into question.
Despite the political discord in Washington, aviation stakeholders need only look up to the sky for some bipartisan relief as the US Congress recently passed legislation for funding the Federal Aviation Administration for the next five years. Of particular importance to our industry, the new FAA Reauthorization legislation also reauthorized the Transportation Security Administration and includes specific air cargo provisions that turn prior initiatives and ideas into required mandates. For example, one of the new laws now necessitates that the TSA begin allowing private, third-party entities to screen cargo away from the airport. Industry stakeholders fought hard for this requirement and views such screening as the next progressive chapter in air cargo security.
The new political dynamic brings trade agreements into the spotlight. While the president can levy tariffs, he will need congressional approval to ratify trade agreements, meaning that the administration can face tough political headwinds, especially with the North American Free Trade Agreement replacement.
However, no trade pact will ever reach its full potential without the significant road, water, and airport infrastructure improvements so we remain optimistic that the new Congress will finally face the issue through an upcoming investment package focused on improving cargo access to vital transportation hubs throughout the United States.