Stability in air freight is hoped for by many, but will it ever exist? Very doubtful, was the majority opinion among the participants of the Nordic Air Cargo Symposium, which took place on 25-26MAR25 in Copenhagen, organized by the Swedish event manager, Euroavia International. So most likely, the cargo industry will remain trapped in a roller coaster loop reminiscent of biblical times with seven good years followed by seven critical ones. However, besides risks, this also entails a variety of new opportunities. They just need to be identified and used, was a key takeaway.
Achim Martinka, VP Global, Air Freight, Commercial and Sustainability at Danish logistics giant DSV, illustrated the volatility in the industry. He referred to the COVID-19 pandemic, which acted like a blood transfusion on air freight and catapulted the industry to unimagined heights, with margins that many players had not dared to dream of before. It was followed by a still lucrative aftermath characterized by a cycle of minor ups and downs. Yet in the midterm, the curve is now tending downwards.
Orange elephant
So where does the cargo industry stand today? Is the glass half full or half empty? This was the focal point of many debates and panel presentations at the Copenhagen Trade Show. In the end, there was no clear guide for action as a takeaway for companies looking to weather the current storm. Instead, industry experts delivered a kaleidoscope of practical examples to help airlines, forwarders, airports, handling agents and other actors to keep their heads above water, despite mounting geopolitical tensions and supply chain hiccups.
It quickly became clear who was in the industry’s dock. The greatest uncertainties in world trade are caused by the erratic tariff policy of the “orange elephant in the white house,” as Steven Verhasselt pointed out, Founder and CEO of the Belgian consultancy firm, FB Cargo Strategy, alluding to the disruptive policies of the Washington autocrat. However, DSV’s Achim Martinka also noted that the truth is that many countries have long levied higher tariffs on U.S. products than vice versa. Nevertheless, since Trump is in office, U.S. customs policy is completely unpredictable, which makes international trade more volatile and puts a huge strain on supply chains. This was the general consensus among the roughly 120 cargo and logistics experts attending the Copenhagen meeting.
At Finnair, the glass is half full…
In her presentation, Gabriela Hiitola, SVP Finnair Cargo, recommended that the only remedy turning pessimism into optimism is more intensive and productive cooperation between all players involved in the supply chain. This must stretch from A to Z, driven by data exchange and process transparency, high product quality and by combining customer insights with human experience. “We have been following this path for some time, and not just at Finnair. Perhaps this has also contributed to the fact that, according to the UN World Happiness Report, we are home to the happiest people in the world.” Hence, Gabriela’s and Finnair’s glasses are certainly more than half full.
… as it is at SAS Cargo
This also applies to SAS and its Cargo Division, as its CEO, Markus Ek, highlighted. The new ownership structure with AF-KLM and the Danish state on board has opened up completely new perspectives for the airline. “Instead of splitting traffic between Oslo, Stockholm and Copenhagen, CPH is developing into the airline’s central intercontinental hub, with a large number of regional connections. The success of traffic centralization is already measurable. For example, SAS is now the second most punctual airline in the EU after Iberia,” said Ek. And he announced two new routes for this year: Seattle and Seoul. “The connection between CPH and ICN in particular will give SAS’s cargo business a further boost.” The future cooperation with AF-KLM will also open up the Latin American market for SAS, which was previously a blank spot in the airline’s passenger and cargo network.
Carriers criticize Airbus’ decision on H2 powered aircraft
Asked by CargoForwarder Global what she thought of the Airbus Group’s decision to postpone the construction of hydrogen aircraft from the originally announced first flight in 2035, by probably ten years, Gabriela Hiitola said: “In terms of aviation’s net zero target and our own efforts to reduce CO2, this is a very disappointing setback for the entire industry.”
Finally, the panelists debated the Trump administration’s announced penalties for shipping companies whose fleets include vessels built in China. “Perhaps as a countermeasure, China should charge tariffs for U.S. built aircraft landing in Shanghai, Beijing or Guangzhou,” an executive signaled to Beijing and Washington, giving their governments some food for thought.
