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Air Freight Forwarders Face Tariff Uncertainty for 2025

Air Freight Forwarders Face Tariff Uncertainty for 2025

The Logistic News by The Logistic News
December 11, 2024
in Air
Reading Time: 1 min read
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Air Freight Forwarders Face Tariff Uncertainty for 2025
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Reflecting on 2024

Air freight forwarders are wrapping up 2024 with stronger-than-expected performance. According to Brandon Fried, Executive Director of the U.S. Airforwarders Association, the industry experienced solid growth, supported by consistent expansion in the logistics sector, as reflected in November’s Logistics Managers Index (LMI) of 58.4.

Looming Tariffs and Potential Impacts

With new tariffs proposed by the incoming U.S. administration, forwarders are preparing for potential disruptions:

  • Proposed Tariffs: A 25% tariff on imports from Mexico and Canada, and a 10% tariff on Chinese goods, could significantly increase costs for consumers and businesses.
  • Economic Impact: These tariffs may raise household expenses by $2,600 annually and heavily affect trade-dependent states like Washington.

Industry Response

To navigate these uncertainties, forwarders are:

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  • Engaging Clients: Proactively discussing strategies to mitigate tariff impacts and ensure supply chain resilience.
  • Monitoring Geopolitical Developments: Adopting a cautious approach, as the proposed tariffs could be part of negotiation tactics.

Challenges on the Horizon

Beyond tariffs, other potential challenges include:

  • Port Labor Disputes: Possible shutdowns on the U.S. East and Gulf Coasts could strain air cargo capacity further.
  • Global Trade Tensions: Geopolitical instability continues to pose risks for the global logistics landscape.

Outlook for 2025

Despite uncertainties, optimism remains. Surveys show that 68% of shippers expect revenue growth in the first quarter of 2025. However, the industry must remain agile, leveraging proactive strategies to address the evolving market landscape.

The coming year will test the adaptability and resilience of air freight forwarders as they navigate tariff uncertainties and broader geopolitical challenges.

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