Trade Tensions Cast Shadow Over Air Cargo Stability, IATA Raises Concerns at WCS 2025

Global air cargo is navigating a renewed wave of uncertainty, as the International Air Transport Association (IATA) issued a strong warning about escalating trade tensions during the opening session of the World Cargo Symposium (WCS) 2025 in Dubai. Brendan Sullivan, IATA’s Global Head of Cargo, underscored the mounting challenges posed by resurgent tariff disputes—particularly between the United States and major trading partners like China—which are shaking the stability of an industry still recovering from pandemic-related disruptions.

Sullivan highlighted a troubling cycle of tariff increases, retaliatory measures, and selective exemptions that have created significant unpredictability in global cargo operations. This volatility is severely affecting sectors that depend on air transport for the rapid delivery of high-value, time-sensitive products such as electronics, pharmaceuticals, and e-commerce goods.

The recent U.S. decision to revoke tax exemptions on certain low-value Chinese shipments has intensified concerns, raising the prospect of broader disruptions in cross-border online retail. “Current trade tensions are deeply concerning,” Sullivan stated. “Trade drives prosperity. The more the world trades, the better off we all are. Regardless of the outcome, air cargo will remain essential in delivering the goods people need and value.”

Amid rising protectionism, IATA urged governments to adopt trade-friendly policies that reinforce resilient global supply chains. The association reaffirmed its commitment to innovation and cross-sector collaboration, emphasizing that regulatory clarity and international cooperation will be critical to ensuring sustainable industry growth.

The symposium also addressed the escalating safety risks associated with the transport of hazardous materials, particularly lithium batteries. IATA cited a growing incidence of undeclared or misdeclared dangerous goods, calling for stronger regulatory enforcement in line with international standards, notably Annex 18 of the Chicago Convention. Sullivan emphasized the need for comprehensive training and certification programs and warned against complacency. “We have a zero-tolerance policy for rogue shippers. Governments must enforce stringent regulations and conduct rigorous inspections,” he said.

Persistent security breaches involving incendiary cargo have also exposed inconsistencies in the enforcement of safety protocols across jurisdictions. IATA criticized the fragmented regulatory landscape and advocated for a coordinated, intelligence-driven, risk-based approach to cargo security, in alignment with Annex 17 obligations. “We must avoid reactive policymaking. Instead, we need shared intelligence and harmonized security measures,” Sullivan urged.

Looking ahead, IATA showcased its digital transformation initiative, ONE Record, aimed at creating a standardized and secure framework for data exchange across the air cargo ecosystem. With a global compliance target set for January 2026, the initiative has gained strong industry traction, with airlines representing 72% of global airway bill volumes already onboard, alongside over 100 IT providers and 10,000 freight forwarders. While full government integration is still underway, Sullivan reaffirmed IATA’s commitment to advocating for the initiative’s adoption within global regulatory frameworks.

As global trade becomes increasingly complex and the air cargo sector evolves at an unprecedented pace, IATA’s message from Dubai was resolute: air freight is a cornerstone of the world economy, and safeguarding its future will require coordinated action, strategic foresight, and unwavering commitment from all industry stakeholders.