Air Cargo Faces Geopolitical Headwinds as IATA Pushes Digital Shift

The global air cargo industry is navigating a period of heightened uncertainty shaped by geopolitical tensions, shifting trade policies, and growing regulatory complexity, the International Air Transport Association (IATA) said at its World Cargo Symposium in Lima, Peru.

Addressing industry leaders on 10 March, Brendan Sullivan, IATA’s global head of cargo, warned that external shocks are increasingly shaping global logistics networks and testing the resilience of supply chains.

“Air cargo plays a critical role in connecting businesses to global markets and keeping supply chains moving, even as the operating environment becomes more complex,” Sullivan said. “With so many external events impacting global supply chains, including tariff and geopolitical shocks, it is important that we work on building resilience in areas we can control or influence.”

The comments come as the industry contends with evolving United States trade policies, conflict-driven airspace disruptions in the Middle East, and changing trade routes that are forcing airlines and logistics operators to adjust capacity and planning.

“Our task is clear,” Sullivan said. “To navigate change and deliver the connectivity the global economy depends on.”

IATA identified three areas it considers essential to maintaining the reliability of global cargo networks: accelerating digitalization, strengthening global standards, and improving safety and security across supply chains.

Digitalization Push

At the center of the industry’s modernization agenda is a push to digitize cargo documentation and data exchange, which IATA argues remains fragmented across airlines, freight forwarders, customs authorities, and logistics companies.

“Air cargo data still sits in fragmented systems across the supply chain, creating duplication, delays, and compliance risks,” Sullivan said.

The issue has become particularly visible with the rapid growth of e commerce shipments, where large volumes of documentation must remain aligned across multiple platforms and jurisdictions.

To address this, the industry has begun adopting the ONE Record standard, which allows supply chain partners to share shipment data through a unified digital framework.

Since January 2026, ONE Record has become the preferred method for cargo data exchange across the sector. “Airlines representing more than 70 percent of global air waybill volumes are on track to implement the system,” IATA said in a statement sent to The Africa Report.

Sullivan described the shift as “a foundational change in how the industry shares, manages, and trusts data.”

However, he said further progress will depend on wider adoption among freight forwarders, technology providers, and governments responsible for regulatory filings.

The association is also looking at artificial intelligence tools to streamline operations. IATA plans to launch an Air Cargo AI Excellence Hub aimed at accelerating the safe adoption of AI applications across logistics operations, including tools that help staff navigate complex cargo and safety regulations.

Global Standards Under Pressure

Alongside technological change, the industry faces growing divergence in how international cargo regulations are implemented across countries and airports.

One area of concern is the increasing number of national and operator specific variations applied to global dangerous goods regulations.

According to IATA, the number of such variations has exceeded 1,200 worldwide, complicating compliance for companies operating across multiple jurisdictions.

“Variations will always exist,” Sullivan said. “But they should remain transparent, justified, and as closely aligned as possible with global standards.”

Operational constraints at airports are also emerging as a concern. Cargo airlines often struggle to secure long term airport slots at major hubs, instead receiving temporary or ad hoc allocations that limit operational planning.

IATA cited airports such as Bogotá, Dubai, Heathrow, and Gatwick as examples where cargo carriers typically do not receive historic slots comparable to passenger airlines.

The industry body argues that slot allocation should follow the Worldwide Airport Slot Guidelines, which call for fair, transparent, and non discriminatory access to airport infrastructure.

“Global standards and fair access to infrastructure are essential,” Sullivan said. “As global trade evolves, aligning regulatory requirements and ensuring transparent slot allocation will be critical to maintaining reliable air cargo connectivity.”

For exporters, particularly those dealing with time sensitive goods such as fresh produce, delays or operational uncertainty can have direct economic consequences.

Sullivan illustrated the issue with the example of temperature controlled shipments of Peruvian blueberries, which must move quickly through warehouses, trucks, and aircraft to reach markets in Europe, Asia, and North America.

Reliable logistics networks, he said, allow producers to connect local agriculture to global consumers.

Safety and Security Risks

While digitalization and infrastructure access dominate industry discussions, safety and security concerns remain central to global cargo operations.

Air freight networks increasingly carry sensitive goods, including lithium batteries and chemical products, while also handling rapidly growing volumes of e commerce shipments.

IATA warned that the existing regulatory framework governing dangerous goods, based on the International Civil Aviation Organization’s Annex 18, requires modernization to reflect the realities of modern supply chains.

The organization also pointed to the risks posed by undeclared dangerous goods and misuse of lithium battery shipments.

At the same time, cargo supply chains are viewed as potential targets for malicious disruption.

Incidents involving concealed devices in cargo shipments in recent years have heightened concerns among regulators and airlines about vulnerabilities in global freight networks.

“Safety and security are shared responsibilities across the entire cargo ecosystem,” Sullivan said.

A key compliance tool in this system is the Cargo Consignment Security Declaration, which tracks the security status of shipments throughout the supply chain. However, implementation remains uneven across countries.

IATA is calling for wider adoption of electronic versions of the declaration to reduce manual documentation, improve data accuracy, and strengthen oversight.

The association also urged greater alignment among pre loading advance cargo information programs, which require airlines to submit shipment data to national authorities before departure.

Navigating a Changing Trade Landscape

Despite the challenges, industry leaders say the role of air cargo in supporting global trade remains fundamental.

Air freight carries a relatively small share of world trade by volume but accounts for a significant portion of high value and time sensitive goods, including pharmaceuticals, electronics, and perishable food.

Sullivan said the sector must continue adapting to a rapidly changing global environment where trade patterns can shift quickly and regulatory requirements continue to evolve.

“The operating environment is becoming more uncertain, not less,” he said.

In that context, he argued that continued cooperation between governments, airlines, and logistics providers will be essential to ensure that global supply chains remain resilient.

“Reliable air cargo connectivity turns local production into global opportunity,” Sullivan said. “It connects businesses to markets, supports jobs, and keeps global trade moving even as the world around it changes.”