Reflecting On IATA’s Op-Ed

     April 2025 will not go down in history for being peaceful and unexciting. This probably means that delegates travelling to Dubai on April 15th for IATA’s WCS will come to the event with a bunch of burning questions. Choosing the timing for an event is a skilful exercise; agendas will remain in conflict no matter what date is selected, but in the end all we require is to meet and benefit from Air Cargo leaders’ wisdom and some social entertainment. Some considerable time ago, when IATA decided to convene the air cargo industry to DXB on April 15th this year, it is unlikely they anticipated the almost unexpected turn international trade would take at the beginning of this month.      For this reason, the IATA Op editorial sounds interesting, without shining in dazzling colours, compared to the charged scenario international trade is going through at this point in time.
     This is how IATA ends its OpEd: “As IATA, Emirates SkyCargo and dnata welcome industry stakeholders to WCS 2025, the focus will be on driving innovation, enhancing efficiency, and ensuring air cargo remains a pillar of global trade. WCS 2025 is more than just an industry event—it’s a call to action. The discussions in Dubai will shape the industry’s trajectory for years to come. The question is not whether air cargo needs can navigate the current environment, but how quickly it can adapt to new global realities. The answer will define the future of air cargo.”
     If the Trump anti-globalization views prevail, this means that one of the greatest players in the complex global supply chains, i.e. the USA, will no longer maintain the conditions for significant volumes of cargo to move across the world to reach the U.S. consumer. Trump seems to be working as a surrogate to the Seattle protesters 1999 and seems to have best intentions to deliver a world with stronger borders to protect American interests by putting brakes to globalization. Whether this actually serves the American interests remains to be verified, but it could cause a complete U turn in the global development.  If this program comes to fruition, leaving the doom and gloom scenarios aside, in our view there are two alternatives: a) air cargo will thrive in Asia, Africa and Europe, perhaps in Latin America, if these areas remain in a free trade situation, whilst U.S. and Americans re-focus on their own internal market; b) all areas retrench on their own markets, starting or revamping  piecemeal autonomous economies, which will struggle to keep all their supplies in balance and this will make international transport and logistics less important than it has been in the last four decades at least.
     From another point of view, the ‘originator of the trade’, i.e. the importer, the customer, the customer’s client, the consumer, which for many years we used to identify with somebody in the USA, will have to be spotted somewhere else. Obviously this is not a black and white picture, but the weight of the USA in global trade has always been predominant, so losing some of it may lead to declining international trade, in particular in air cargo. 
     IATA is expecting an expanding air cargo market: “Air cargo was a standout performer in 2024, growing 11.3% — outpacing passenger demand; e-Commerce expansion and disruptions in sea shipping kept demand high, with yields 39% above 2019 levels. Looking ahead, 2025 is set for another 5.8% growth, but challenges loom: geopolitical uncertainty, inflation, and potential U.S. policy shifts, including new tariffs.” In our opinion this expectation may actually come true, because the changes that are triggered by the new policy will take some time to settle down, but the 50% decrease in volumes’ growth may start immediately and continue, up to the point when it could take a reverse trend. If the contraction is huge, the capillarity of logistics services will become impossible, and will no longer exist, in particular in weaker areas.
     IATA continues with a spontaneous truism: “These pressing issues will take center stage at the IATA World Cargo Symposium (WCS) 2025 in Dubai from the 15-17 April. Industry leaders will explore how air cargo can navigate an increasingly complex global trade environment.” This is the language you would normally use to attract participants and confirm that the issues they have in mind will be right in focus at the summit. This time, industry leaders will explore how air cargo can navigate an increasingly complex global trade environment, quite literally… Let us hope for fair winds and following seas. At this point it is difficult to say anything more meaningful than that.
     IATA sets the pace with three main conversations: “the symposium will feature plenary sessions, specialized tracks, workshops, and executive summits, addressing: digitalization (the role of AI and automation in the future of air cargo); sustainability (strategies for decarbonization, reducing single-use plastics and ESG reporting; risk and resilience (navigating geopolitical uncertainty, regulatory shifts, and supply chain disruptions).” In 2024 these evergreens could actually hit the news, in 2025 this possibility seems remote, but let us do some cherry-picking of the statements . . .
     “The strength of e-commerce will represent a growing portion of air cargo business. Currently, e-commerce averages about 20% of cargo business industry-wide, but it is expected to grow to at least a third of all cargo shipments. Given that, by 2027, e-commerce is expected to be an $8 trillion market segment, the sector stands to reap a significant reward if it can get its product correct”, but more likely the “fireside chat on IATA’s Digitalization Leadership Charter, which was established to accelerate and sustain the industry's digital transformation” with 17 signatories in 2024, may be disturbed by the suspicion that de minimis and tariffs could blur our rosy expectations. Let us just hope that nobody will majestically descend a staircase and spell out: “Alright, Mr. DeMille, I'm ready for my close-up”. We are not at the Sunset Boulevard of international trade, but the consequences on e-commerce of the decisions taken in April 2025 in Washington may linger for several years and by 2027 the trends in e-commerce may show a more subdued profile than it was expected. It is doubtful that anybody has seen a penny coming in as yet, even after de minimis’s reform, as announcements are not galloping to fruition at the speed of our gullibility, but we should never underestimate the power of the self-restraining consumer. These individuals, in the privacy of their yet uninhibited minds, may simply decide that they will not want to use their money to buy something they do not really need, in fear of what comes next and they cannot anticipate. In fact, the anti-globalization movement was precisely suggesting to use tariffs to thwart excessive consumption. The tricky point is deciding where the adjective excessive starts to superimpose and prevent our desires . . . It is a question of balance and there is no doubt we are far from achieving it. 
     “Sustainability: building a Greener Air Cargo Industry” is the next topic that IATA discloses, and arguably this is the area where the new U.S. administration could have the most dramatic influence, considering we heard the motto “drill, baby, drill” clearly spoken. If temperatures get really hot quickly, spaces like Siberia, Canada and Greenland seem to become very appealing, but even if Siberia could host the entire planet’s population, considering its extension, this is not what even our wildest caprices could fancy.  More likely, sustainability will win in the end, figures can be fiddled, but even reading your phone screen can be difficult in a desert at 48°C or more. It will not be so important whether the news is true or fake at that junction . . . Very unlikely that anyone can put a tariff on the temperature, but this is precisely what we have been trying to do in the various COP meetings, clearly with negligible success. And then? Glaciers are melting all over the world at a speed that is both unexpected and dangerous, whilst COP’s objective to limit global warming to 1.5°C has simply been overshot even before measures could be taken to accommodate: perhaps we should be worried, but we seem to have other priorities in mind, and sincerely they seem to be the wrong ones.      
     In terms of aviation, sustainability is precisely where the hardest work needs to be done, because climate will not show patience separately with the EU, the U.S., China, Russia or Africa: all of us will go through a common destiny in the end. IATA declares that “sustainability efforts will significantly impact the industry's environmental goals. Reducing paper usage, optimizing cargo space, and minimizing single-use plastics are priorities. Circularity initiatives—such as recycling Unit Load Devices (ULDs) and increasing the use of Sustainable Aviation Fuel (SAF)—are critical to reducing air cargo’s carbon footprint.” Aviation is a very difficult area where improvement never seems to be sufficient, but thinking of ULD’s and SAF is probably not enough. Maybe we need to squeeze our brains a bit more . . .
     Risk and opportunity comes to the table then in IATA’s statement: “geopolitical risks remain a wildcard for air cargo. Potential U.S. tariffs could create short-term spikes in demand—just as seen during the 2018–2019 U.S.-China trade war when businesses rushed to move goods before new duties took effect. Recent IATA data suggests a similar pattern, with December air cargo rates from Asia to the U.S. rising 8%. However, the long-term effects could be more disruptive. Higher costs may weaken demand, drive regional sourcing, or push volumes toward ocean freight. Stricter e-commerce regulations, including changes to de minimis exemptions, could further complicate cross-border trade.” Diplomatically you use could or would when you know that something will actually hit you hard and this is perhaps the way we need to read this statement. Could you blame IATA for speaking so softly? Honestly I think their language is pretty clear and anything sharper could be interpreted as a possibly unwanted and perhaps unjustified political statement.
     “At WCS 2025, industry experts will discuss strategies to enhance resilience—from adapting to shifting trade policies and regulatory environments to strengthening supply chain security in an evolving threat landscape.” This is by far the best statement we have read. If IATA manages to pull some ideas together that will shed some light for the disoriented trader, we shall all be indebted and grateful.
     Let us now take the last statement in this brief analysis: “the Road Ahead: collaboration is key. The future of air cargo depends on collaboration across the ecosystem—airlines, logistics providers, technology firms, regulators, and shippers. Dubai, with its world-class logistics infrastructure and strategic position at the crossroads of global trade, offers the ideal setting for these crucial discussions.” Well, that’s it. Collaboration is the only way we can keep the ball rolling and collaboration is everywhere in Dubai. If there is a place in the world that could seriously suffer in case international trade suddenly dries out, that is Dubai. I am sure the Emiratis will go a long way to dispel the risk and try to keep all parties reasonably satisfied.  From some points of view, I consider this to be the best assurance for the summit’s success.
Marco Sorgetti

     Peter Penseel joined Delta in June 2024, responsible for leading the Cargo Commercial division with a focus on driving revenue and profitable growth, delivering industry-leading customer service and ensuring operational excellence within Delta’s Cargo business.
     Peter came into the job ready when you are with more than three decades of experience in various roles across the air cargo, freight forwarding and the logistics sectors.
     He served as the Chief Operating Officer – Airfreight at CEVA Logistics, and also held several other senior leadership positions at Qatar Airways Cargo, DHL Global Forwarding and UTi Worldwide (DSV A/S). Peter serves as a member of the Supervisory Board of Maastricht Aachen Airport in the Netherlands.
     Here and now this week as IATA World Cargo Symposium meets in Dubai for its most important annual mandated gathering of all the airline cargo chiefs, we go up close and personal with Peter Penseel.

FT:  What are you thinking about as Spring 2025 unfolds? Kindly ask you unpack impressions of 2024 first experiences at DL Cargo both the highs, lows and what surprised you?
PP:  All in all 2024 was a great year for Delta Cargo. We achieved strong results across the board — exceeding our safety, financial, and operational targets. We grew our revenue share year over year and delivered an all-time high in cargo load performance. One of the accomplishments I’m most proud of is the significant improvement in our customer satisfaction scores, which rose by 23 points compared to the previous year. That progress speaks to our team's commitment to becoming the preferred carrier for our customers.
     A major accomplishment was the rollout of iCargo — one of the most transformative initiatives in Delta Cargo’s history. This new platform is a game-changer, enabling greater efficiency, enhanced tracking, and optimized global operations. We recently completed the implementation in Atlanta, our largest and most complex hub, bringing the total number of stations live on iCargo to 175. That achievement reflects not only the scale of the transformation but also the dedication and expertise of the team driving it forward.
     Of course, transformation at this scale doesn’t come without its challenges. Integrating a new platform while keeping operations running smoothly required intense coordination across our teams and strong communication with our customers. We also navigated ongoing industry changes — from capacity shifts to evolving customer expectations — which made our results all the more meaningful.

FT:  What surprised me most (in a good way) was the sheer energy and resilience of the Delta Cargo team.
PP:  From day one, I saw a deep sense of pride and ownership at every level of the organization. That mindset — paired with a strong foundation and clear strategic direction — gives me a lot of confidence as we move into 2025.

FT:  What lies ahead for 2025 in terms of priorities? Can you offer some sense of a regional approach and perhaps some commodities Delta might be focusing attention to developing or enhancing service?
PP:  Our goal is to be our customers’ brand of choice — and that means staying close to their needs. Twice a year, we conduct in-depth customer surveys to understand how we’re doing, what we’re doing well, and where we can improve. We reached an all-time high in our Net Promoter Score last year, and we’re aiming to push even further in 2025. We’re also focused on increasing our presence with both existing and prospective customers. That means being more visible and accessible — through conferences, tradeshows, and face-to-face meetings. We’re looking forward to having an expanded presence at Air Cargo Europe in Munich this June, where we’ll host customers and partners at our Delta Cargo booth, complete with a lounge and meeting space.
     Another key priority in 2025 is running the best operation in the industry. A reliable, consistent operation is the foundation of everything we do — it’s what builds customer trust. We’re focused on achieving best-in-class performance, with a particular emphasis on improving on-time performance metrics and continuing to deliver an industry-leading experience our customers can count on, 24/7/365. Digitally, we’re making significant strides. With the iCargo rollout nearly complete, we’re on track to offer industry-leading digital capabilities that will enhance visibility, improve tracking, and streamline the end-to-end experience for our customers across the globe.
     As we look across the network, we continue to evaluate opportunities by region to grow in areas where Delta’s strengths — our global network, operational reliability, and premium service — can provide the most value. We're focused on developing our pharma and express offerings, where service precision and care are critical. These are areas where we know Delta Cargo can make a difference and deliver exceptional value to our customers.

FT:  How is Delta Cargo performing overall. With some uncertainty in business what is your outlook and where do you think lies the strength at Delta Cargo to prevail in the remaining months of 2025?
PP:  Despite the uncertainty in the broader market, I’m encouraged by the strong momentum we’ve built in the first quarter. Delta Cargo reported Q1 revenue of $208 million, up 17% compared to 2024. That growth was driven by strong yield performance and increased flying of higher-capacity aircraft, particularly in the Pacific region. While the market environment remains dynamic, our strategy is clear — and we remain focused on delivering reliable, high-quality service wherever and whenever our customers need us.
     What gives me a lot of confidence in the months ahead is the strength of our people. Delta’s people-first culture is the foundation of our success. When you take care of people and rally them around a shared purpose, you can achieve great things — and that’s exactly what I see across our commercial and operational teams every day. Both sides of the business are working hand-in-hand to deliver outstanding results.
     We recently brought together hundreds of team members and partners from around the world for our annual Global Cargo Conference in Atlanta — a great example of how we align our teams around a unified vision and shared goals. That kind of engagement is critical to keeping everyone informed, empowered, and connected to the mission.
     At the same time, we’re building a culture of optimization. We’re rolling out multiple initiatives aimed at increasing efficiency — from improving capacity utilization to moving freight more strategically — which will deliver benefits regardless of market conditions. That combination of people, purpose, and performance is what sets Delta Cargo apart, and it’s why I’m confident in the road ahead.

FT:  If there were a few things that you could change or even just one thing...as air cargo does business what would that include?
PP:  If I could change one thing, it would be accelerating our industry's pace of digital transformation and standardization. While we've made meaningful progress, there's still a lot of fragmentation in how data is shared, systems communicate, and transactions are handled across the supply chain.
     Customers today expect real-time visibility, seamless booking, and proactive service — and we should be able to deliver that with the same ease they experience in other industries.
     That’s why initiatives like our iCargo rollout are so important — not just for Delta Cargo, but for raising the bar across the industry.
     The more we can simplify and modernize how we do business, the more value we can deliver to our customers, and the stronger and more resilient our industry will become.

FT:  What does this industry need do to mine new talent to join the industry? What is the Delta approach to recruit and keep next generation logisticians? What is the offer?
PP:  Attracting the next generation of talent is both a challenge and a great opportunity for our industry. And it starts with us — the senior leadership. We have a responsibility to cultivate an environment that not only welcomes new voices but actively invests in their development. That means being visible, being intentional, and being champions of the change we want to see.
     To bring in the next generation, we need to shift the narrative around what a career in air cargo and logistics can look like. This is no longer just about moving boxes from point A to point B. It’s about enabling global commerce, supporting supply chains that connect people to critical goods, and using data and technology to solve complex challenges in real time. That’s exciting — and it’s a message we need to amplify.
     At Delta Cargo, our approach starts with purpose and people. We offer meaningful work, a strong sense of mission, and a values-driven culture where people are empowered to lead, grow, and make an impact. We’re intentional about bringing in diverse perspectives — from operations, data, technology, customer experience, and beyond — and giving our teams the tools and training they need to thrive. And just as importantly, we work hard to create a culture of belonging — where every team member knows they’re valued and has a voice.”
GDA

     “Thriving in an uncertain future” is the subtitle of one of the event streams at IATA’s WCS in Dubai and it captures everyone’s attention today with this message: “Aviation is committed to net zero carbon emissions by 2050, including the air cargo sector. At the World Cargo Symposium, Marie Owens Thomsen, IATA’s Chief Economist and SVP, Sustainability, put this challenge into context.”
     Having in mind one of the opening sessions at the recent FIATA’s HQ in Geneva, no doubt our forwarders friends in the Dubai attendance will listen carefully, considering their clear commitment to reduce emissions to achieve sustainable air cargo in future. They will listen carefully, even though their mind will still focus on their common air cargo programme that has not been achieved yet. Torn between these two capital issues, their commitment to building a sustainable, thriving future for air cargo cannot be questioned.
     In preparation of the event we tried to talk to some of our usual contacts and managed to get the views from a seasoned practitioner, which we are trying to put in context in the following Q&A session.

FT:  During FIATA meeting in Geneva there was a long and interesting debate about emissions. Is the issue of emissions still vital for airlines or will the situation change in time toward a more “traditional” approach? In particular, it was noted that CORSIA would NOT be discontinued: do you agree?
Seasoned Practioner:  Carbon off setting/reduction is here to stay. In fact, a lot of our customers, in Europe at least, demand these numbers when we fill out our tenders/quotations. The airlines have set themselves a target of net zero carbon foot print come 2050. However, I do not think that this will come without a cost; point being, are customers willing to pay for this? I still do not see this happening; will it happen? I think it will. If cargo could fly on passenger seats anything can happen: it’s mind-sets that have to change.

FT:  2025 FIATA HQ was held a couple of weeks ago and this year the absence of IATA was noticed. Is this just due to the fact that IATA did not have news to communicate to the forwarding community, or is there something different to be expected?
S P:  I cannot exactly comment on this as I do not chart out the programs, but I am quite sure there is nothing untoward in this as FIATA is discussing the Global Program with IATA as we speak. As I understand there is an appetite from both sides to see this through but the question is – when . . .

FT:  In repeated occasions at FIATA’s we heard from the industry, and also from W. Walsh last year, that cooperation is key, but many forwarders complain that there is seldom a peer-to-peer relationship and there have been questions on this point, even in the European market. What element makes the dialogue difficult? Is the fragmentation of the forwarding sector the issue or else?
S P:  The airline/forwarding communities have tried on various occasions to try and get some fair play for both sides, however when one side is too powerful this always becomes a challenge; more than the sheer negotiations it sadly boils down to egos sometimes, which makes progress difficult. When a forwarder sits across the table with an airline they get along fine, and it is business as usual; but it’s quite different when 2 associations sit across the table representing 2 different communities, which is where the problem arises. We need to get over this hurdle and I am sure FIATA is trying to do just that, but sadly we’re still not there.

FT:  Please let our readers hear which are today’s priorities for the forwarding community and what is to be expected in Air Cargo in the next 20 months.
S P:  Going by the uncertainties around us today’s priorities are more towards stability. Air cargo is a very perishable and volatile commodity and today’s turbulent times are surely not helping forwarders nor airlines plan allocations/capacities. Once this settles a bit, which it eventually will, the long term priority would be to offer our customers secured space/rates which would enable forwarders to plan their yearly budgets based on some reasonably stable revenues.

FT:  A few months ago IATA gave us figures that were showing a picture of great optimism. The FT made an article based on IATA’s statements whose title was self-evident: “flying by the trillions”? April 2nd Trump introduced tariffs that will probably condition the future of trade. In view of the probably inevitable decrease in U.S. bound trade, do you think forwarders will seek adjustments to accommodate the American administration or they will simply try to find alternative markets?
S P:  The optimistic figures were naturally then based on market trends then prevalent. That has now turned around on its’ head with U.S. tariffs.  In terms of forwarders accommodating markets honestly it is sadly not upon us to do this as it is our customers who decide where they want to send their goods – we are merely the facilitators. But certain less tariffed countries could certainly turn this to their advantage as against competing Countries which have higher tariffs. This may give them a competitive advantage in sending out their goods into the U.S. However, I do hope some sanity prevails globally instead of a tit for tat game.

FT:  This is a questions that remains in the list as an evergreen, perhaps an answer in itself . . . FIATA and IATA worked quite a lot on the digitization of transport documents, are there lessons to be learnt for those who seem to struggle on this, in the interest of global trade? How digitization and technology innovation can help us achieve better trade? IATA is promoting its standards, but . . . What is to be expected?
S P:  I think both organizations are working closely together in this area however there is a lot still to be achieved. Digitization is an ongoing challenge in our ever- changing environment. The most current one being the PLACI where FIATA was actively involved and still is; safety and security is another area where there is always a challenge in coordinating the roles of different players involved in handling of shipments. In fact, this is exactly what the Global Program is set out to achieve in terms synchronization of activities/responsibilities and digitizing the supply chain thus making it a win-win for both sides.
Marco Sorgetti

     Ask Amar More Kale Logistics Solutions Founder and guiding spirit who just attended ICAO’s first ever Global Air Cargo Summit at Istanbul April 9-11 about that organization moving into organized air cargo events and the erstwhile executive  always on the go in between flights onto Dubai for World Cargo Symposium that kicks off on Monday April 14 puts it this way:
     “ICAO where we participated in the sessions was been a smashing success attracting civil aviation authorities from over 80 countries, industry delegates, regulators and other industry associations such as TIACA, FIATA, ACI, WCO, IPSCA etc.
     ‘The summit is happened over 3 days (9th to 11th of April) and all the sessions are quite engaging.
     “Kale Logistics was pleased to be part of Session 3 of the ICAO event that featured a lively and informtive discussion infrastructure development for air cargo operations," Amar More said.
     Moderator was Miguel Marin, Deputy Director, Capacity Development and Implementation Bureau, ICAO. Panellists were: Lekan Thomas, Director, Cargo Development & Services, Federal Airports Authority of Nigeria,Amar More, CEO, Kale Logistics,Claudio Eminente, Principal Director of Economic Planning and Infrastructure Development, ENAC Italy, Mürvet Sahin, Senior Regulatory Affairs Manager, Maersk Air Cargo A/S. Wilson Kwong, Chief Executive, Hong Kong Air Cargo Terminal Ltd. (HACTL)

Key Takeaways -

Current Challenges:
      •   Inefficient operational processes causing terminal congestion
      •   Excessive paperwork - one shipment can require 125+ document copies
      •   Limited dedicated cargo space at airports
      •   Environmental restrictions impacting operating hours
      •   Disconnected digital systems across stakeholders

Solutions Proposed:
      •   Pre-submission of cargo documentation and truck appointment systems
      •   Airport community systems for stakeholder collaboration
      •   Enhanced intermodal connectivity to streamline supply chains
      •   AI implementation for operational optimization and safety (e.g., thermal scanning for lithium batteries)
      •   Converting ICAO's common platform recommendation to a standard.

     Panelists emphasized that technology solutions already exist but require regulatory support, standardization, and—most importantly—mindset change across the industry.
     The discussion highlighted ICAO's potential role in facilitating common standards and bringing stakeholders together to create more efficient and sustainable air cargo infrastructure worldwide.
Geoffrey Arend/Ken Knitter