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   Vol. 24  No. 39                                          

Monday September 15, 2025

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RE:  DeMinimis Saga A Gas

Bill BoeschBill Boesch
CEO & President
Council For Logistics Research

Open QuoteEliminating the $800 duty exempt fee in my opinion is the straw that is going to break the camel’s back.  As you know, the majority of the forwarder consolidations are International shipments that fall into this category. The larger of the air cargo carriers will survive, but the days of the smaller U.S. or cargo carriers may be coming to an end.  
     I hope the people who made this decision did their homework and looked at the impact of their decision on the U.S. air cargo market Even the big carriers in the U.S. like FedEx and UPS are going to see a decrease in their International business. DHL to the U.S. will also see a decrease. This will affect their bottomline. 
     I believe this decision was reached in order to incentivize production of these shipments in the U.S., but it seems public opinion outside this country maybe at an all-time low and the global markets just will pivot and focus on other markets. 
     We see what’s happening with India and other countries. It’s causing them to deal more with China. As I’ve said for the past three years, China’s plan is to overtake the U.S. as the leading global power and these decisions might be acting as a catalyst for China to achieve that goal quicker.
     I also hope the people who are advising our president on these measures understand that air cargo represents up to 40% of the value of world trade. I hope there is representation from the air cargo industry on their advisory Close Quoteboard.

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Steve ParkerSteve Parker
Director General
British International Freight Assoc.


Open QuoteWhat we are seeing in the UK are companies in assessing best option to still move product taking account of the changes.
     Some are considering setting up a fulfilment warehouse in the U.S. and getting the benefit of shipping in bulk and clearance costs, but none of this is quick and all Close Quotemeasures add costs in the supply chain.

EMO 60 Celebration

     It's back to work time all around the world as Summer 2025 ends.
     Last week EMO Trans Logistics held its Global Network Meeting in Hamburg, Germany.
     In addition to this dynamic global transportation resource getting down to business, there was also a pause in the days' occupation as EMO-TRANS GmbH celebrated 60 years of service.
     Established in 1965 in Stuttgart, Germany, EMO Trans has been on a path of continued expansion and success, seemingly for every minute of the past six decades.
     In 2025 EMO Trans with its advances in hands on personal and corporate service is a global logistics leader of the 21st century. The company in 2025 is 100 EMO offices in 25 countries and 250+ network offices in 120 countries covering 6 continents.
     EMO Trans ensures delivering, as the company declares “exceptional logistics services to customers large and small”.
     “We are a multi-national privately owned company, deeply invested in understanding and internalizing the needs and goals of our customers.
     “Our goal is to forge partnerships, ensuring that we are able to facilitate the most efficient, effective supply chain solutions possible.
     “Global Logistics is what we love doing.
     “Some of our customers have been with us for decades, they have stayed because they recognize that beyond rate tariffs and automated processes, the relationships we build add value.”
     You don't have to look very hard or far to understand why EMO Trans has reached its celebration of 60 years, while gaining a global reputation for first class service up and down the line.
     It's the people.
     And it says so right on the company website.
     “Success by Performance is both a motto and a method.
     “Constant investment and focus on customer needs has brought us to where we are today and will continue to carry us into the future.
     “Teamwork is key. By trusting our employees and encouraging collaboration, we give them the tools and resources they need for success.
     “Our people tend to stick around longer because of our positive culture. We appreciate the loyalty of our employees and believe in treating everyone with dignity and respect.
     “We are fiscally responsible and believe that financial stability is the right of our customers and employees. Your cargo and their jobs will never be at risk due to bad financial planning or reckless decisions.
     “EMO Trans at 60 with deep thanks to all our business partners and team members continues in 2025 as a family-owned business.
     “Our promise as we grow is to continue to work hard keeping the same family values and ethics that tell everyone that we never forget how important you are.”
Geoffrey Arend   


Chuckles for September 15, 2025

Dennis Monts, Timothy Walton, Jonathan Giffin, Christian Schwartz

  The Intermodal Association of North America is readying its big Annual Intermodal Expo slated to take place at The Long Beach Convention Center September 15-17.
  Intermodal EXPO is a significant event for the intermodal supply chain, bringing together professionals from various sectors, including rail, road, and sea.
  IANA based in Calverton, Maryland was founded in 1958 and today 1,000 members strong represents the combined interests of the global intermodal freight transportation industry.
  As IANA approaches 70 years of service promoting intermodal freight transportation through innovation, Anne Reinke is just completing her very first year as President and CEO of a diverse and influential organization that Joni Casey had led for 27 years before retirement.
  “IANA is the face and voice of the intermodal Industry today,” she declared adding:
  “Intermodal EXPO 2025 is the only exhibition bringing together the entire intermodal freight supply chain.”
  “Plan to join more than 2,000 professionals and 400 exhibitors for this year’s event.”
  No doubt this major transportation organization has struck gold for a second time landing an industry building female at its helm during this most important time in history.
  True to its mission statement, IANA aims to promote the growth of efficient intermodal freight transportation by fostering innovation, education, and dialogue among its members and the broader industry by also supporting the next generation of logisticians.
  Outstanding at Intermodal EXPO is an outreach to future logisticians event titled The Academic Challenge – Annual Student Competition.
  “Since 2011, the Student Competition at EXPO has allowed undergraduate students from IANA’s Scholarship Award Schools to apply their logistics and transportation studies to real-world intermodal issues and showcase their understanding of global and domestic intermodal supply chains.
  The first three competitions consisted of student research paper presentations on a prompted intermodal topic before a panel of industry judges. Subsequent competitions have consisted of student teams presenting recommendations on a specific intermodal industry business case.”   
  Looking over the roster of exhibitors attending the Long Beach Intermodal Expo we note PayCargo will be front and center exhibiting at IANA Intermodal Expo on September 15th!
  Team PayCargo will include from (clockwise) Dennis Monts, Timothy Walton, Christian Schwartz and Jonathan Giffen.
  “Our team is looking forward to connecting with industry leaders, exploring the future of intermodal freight, and sharing how PayCargo is helping companies move cargo faster and smarter through secure, digital payments.
  “PayCargo has a vast network of over 5,000 logistics vendors, including major ocean carriers and terminals.
  “Our platform utilizes advanced technology to streamline the payment process, ensuring that transactions are secure and compliant with industry regulations.
  “PayCargo integrates with existing logistics systems, minimizing disruptions and enabling smooth adoption.
  “By leveraging PayCargo's technology, businesses can significantly reduce processing costs and improve cash flow management.
  “Our platform's innovative approach to cargo payment systems sets a new standard for speed, security, and simplicity in financial transactions within the supply chain.
  “PayCargo 2025 is the fastest, most reliable way to pay.”
More: www.paycargo.com


FlyingTalkers podcastFlyingTalkers

Delta Cargo & ATC Aviation



Quikjet

     India’s air cargo industry has always flown against headwinds—high airport charges, fragmented policies, and uneven infrastructure. Now, a new shock has thrown the sector into fresh turbulence: Donald Trump’s sweeping 50% tariff on Indian exports. For a business built on speed, predictability, and seamless global flows, the tariff is proving deeply destabilizing.
     Over the past decade, India diversified export markets while cementing the U.S.—its second-largest trading partner—as a crucial destination. Pharmaceuticals, textiles, gems, electronics, and perishables move daily to American hubs. That momentum is suddenly under threat.
     Margins that were already thin have all but vanished. With tariffs doubling the landed cost of goods, demand has collapsed. Exporters are shelving shipments, forward bookings on key routes such as Delhi–Chicago and Mumbai–New York have slowed to a crawl, and carriers report load factors sliding below break-even.
Preetham Philip     What the tariff shock has brutally exposed is the fragility of India’s air cargo competitiveness. Industry leaders have long warned of policy distortions—most notably the “royalty pass-through” system embedded in India’s Public-Private Partnership (PPP) airport model.  Capt. Preetham Philip, (left) CEO of Quikjet, India’s only dedicated cargo airline, is blunt: “The royalty mechanism is the structural flaw at the heart of India’s cost problem.”
     Here’s how it works: private airport operators levy royalties—sometimes as high as 45% of gross turnover—on Independent Service Providers (ISPs). These costs are simply passed down the chain, inflating invoices for airlines and shippers. India’s Airports Economic Regulatory Authority (AERA) has criticized the practice as “not commensurate with the cost or quality of service” and even proposed caps. But the uncapped regime persists, rewarding the highest bidder rather than the most efficient operator.
     The result is a cost structure that makes India one of Asia’s priciest air cargo markets. Airports under PPP consistently charge multiples of their Airports Authority of India (AAI) counterparts. Where royalties soar, competitiveness collapses.
     This debate is not new. In 2012, the Ministry of Civil Aviation convened a Working Group on Air Cargo and Express Services to map a long-term growth path—dismantling bottlenecks, unlocking efficiencies, and aligning with India’s economic rise. More than a decade later, most recommendations remain unimplemented. Costs remain high, frameworks outdated, schemes fragmented.
     The Krishi Udan scheme for perishable exports illustrates the gap between ambition and execution. Spanning eight ministries, it lacks a dedicated budget, relies on fee waivers rather than systemic fixes, and often falters due to missing cold storage, equipment, and integrated logistics. Worse, by ignoring royalty-driven ground and handling charges at PPP airports—where most high-value cargo flows—it offers only partial relief.
     India’s struggles are stark when compared to China’s Aerotropolis model. There, airports are treated as strategic enablers, not profit centres. Subsidies, fee waivers, and industrial integration transform them into engines of trade.
     The Zhengzhou Airport Economy Zone is emblematic: a 415 sq km ecosystem built around Xinzheng International Airport, seamlessly connecting logistics, bonded trade, and manufacturing. At its heart is Foxconn’s iPhone assembly plant, employing 200,000 workers and exporting half a million smartphones daily. By tying airports to industry, China has built hubs of global competitiveness.
     India, by contrast, risks being trapped in a toll-booth model—airports as rent-extracting assets rather than catalysts of commerce.
     Global supply chains are in flux, with companies diversifying beyond China. India has a rare chance to capture a greater share of time-sensitive, high-value exports—from electronics to pharmaceuticals. But unless it tackles structural inefficiencies head-on, the opportunity could slip away.
     In the near term, Trump’s tariffs are forcing recalibration. Routes may shrink, freighters may redeploy, and exporters will renegotiate terms. In the longer term, the lesson is clear: without deep reform, India’s air cargo sector will always be flying into headwinds—whether from Washington, Beijing, or its policy blind spots.
Tirthankar Ghosh


Geoffrey Arend, Bob Imbriani,Brandon Fried, Jim Foster Award

Marcus Bennett

  “Some events spark ideas. Others spark action.
  “At our WhereNext Chicago September 11th, we are aiming for both.”
  Sage words from Kuehne+Nagel’s CEO & President USA Marcus Bennett, as the erstwhile executive invited colleagues to an all-day preview K+N branded Where Next Chicago that showcased the latest and greatest from the forwarder.
  The event also included some hours spent getting down to business of sharing and mining some big ideas ahead in Healhcare Logistics.
  Right now as Summer 2025 fades like the full Blood Moon earlier this week, the ramped-up season of Industry trade shows is off to the races in full force.
  This event from K+H proved that sometimes most important meetings are being conducted right under your nose.
  “First our event showcased our major investment, state of the art, GxP-compliant cool chamber building to explore the next big moves in Healthcare Logistics.
  “From navigating regulatory shifts to advancing cold chain innovation, the conversations that happened here will help shape the future of resilient supply chains. 
  “We looked forward to engaging sessions with our customers, industry experts and colleagues.
  “Was honored to open the day with a 9/11 remembrance, then setting the tone for an exciting day and closing the day with reflections on what we’ve learned—and where we’ll go next.”
  With a tip of the hat to the people at K+N & organizations like Brandon Fried’s Airforwarders Association that support local activities from Frankfurt to Timbuktu, to Chicago USA, their brilliance reminds us that often knowledge and success lies, right under our eyes:
  Back in our own backyard!

Geoffrey Arend



FTM2025

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