In today’s rapidly evolving global logistics landscape, freight forwarders are grappling with unprecedented challenges that threaten profitability and efficiency. As supply chain disruptions, rising fuel costs, and volatile freight rates reshape the industry, the need for innovative solutions has never been greater. In this guest article for CargoForwarder Global, Mike Hane, Director of Product Marketing, TMS at Descartes, explores how real-time air cargo visibility can empower forwarders to adapt, unlock new efficiencies, and safeguard their bottom line in the face of mounting pressures.
Freight forwarders are facing mounting pressure on profit margins in 2026. As Red Sea rerouting and intensifying Middle East conflict disrupt global supply chains and drive a sharp increase in fuel prices, forwarders are battling the escalating costs of transporting cargo for their customers. While shipping freight by air can help mitigate the impact of maritime disruptions, airspace restrictions and flight cancellations have removed approximately 13% of global air freight capacity, causing freight rates to surge on top of increasing fuel costs.
Despite increasing costs, air freight is in high demand. According to a 2026 analyst report, an escalation in pharmaceutical cold-chain logistics and accelerated supply chain needs for high-tech electronics are driving the growth of the air freight market.
In addition, explosive cross-border ecommerce demand has increased the need for smaller, more frequent shipments, with airlines adapting to this trend by optimizing belly capacity and increasing flight frequencies to fulfill the quick delivery promises.
While the demand for air freight remains strong (despite being the most expensive mode of transport) and volumes are increasing, freight forwarders are watching their margins take a hit. Indeed, rate and tariff volatility, unpredictable surcharges, and rising fuel and insurance costs pose a serious threat to the bottom line.
With profitability under siege, forwarders are seeking ways to unlock efficiencies in their air cargo operations and prioritize resilience in their supply chain to meet customer demands and ensure the timely and most cost-efficient delivery of goods.
Visibility matters
As freight forwarders optimize their logistics strategies, systems, and technology with efficiency and cost savings in mind, end-to-end shipment visibility has become an invaluable strategic advantage in their toolkit. In fact, a recent global transportation management survey found that (for the eighth year running) supply chain leaders rank visibility as the top capability for managing, enhancing, and delivering value in transportation.
By adopting automated air cargo tracking tools, forwarders gain real-time visibility into the location, status, and estimated time of arrival (ETA) of their goods. They can easily track and trace air shipments, capture relevant data, and effortlessly transfer information between stakeholders. This level of visibility and transparency empowers forwarders to make data-driven decisions to lower costs, ensure timely delivery, and provide consistently strong customer service.
5 benefits of air shipment visibility
As shipping volumes rise and manual tracking processes break down, automated air cargo tracking is the competitive differentiator forwarders need to build brand loyalty, boost customer retention, and protect margins. With real-time visibility into their air shipments, forwarders benefit from:
- Lower costs. Replacing manual air cargo tracking with automated tracking technology enables forwarders to detect potential delays and exceptions earlier and reduce the risk – and expense – of any disruptions along the shipment journey. They can reroute freight or adjust delivery schedules in real time, preventing unnecessary costs linked to lost or delayed shipments (e.g., airport storage fees due to late pickups; last-minute expedited fees) and additional customer service interventions.
- Data-driven decision-making. With accurate, real-time data, forwarders can proactively address any issues, such as delays, disruptions, or damages that occur during the transportation process. This visibility enables forwarders to act rapidly and minimize the impact on their operations and customer service. Plus, with nuanced insights into shipping performance through historical data analysis, forwarders can identify areas for improvement and refine their processes to increase efficiency and trim operating costs.
- Enhanced customer experience. Air cargo tracking tools offer forwarders and their customers peace of mind, enabling them to monitor progress at every stage of the shipment journey in real time. Automated alerts notify forwarders of any changes in shipment status, such as delays, enabling them to take immediate action. This level of responsiveness and agility builds trust in the forwarder’s ability to deliver cargo on time and in good condition, translating to higher customer satisfaction and retention rates and driving top-line revenue.
- Greater supply chain efficiency. Visibility into air shipments is essential for improving overall supply chain efficiency and decision-making. Real-time data on cargo location and status enables forwarders to make informed decisions – both in the immediate instance and long-term – regarding exception management, route optimization, and demand forecasting. Armed with real-time and historical visibility data, forwarders can optimize their network and operations to reduce transit time and minimize disruptions to increase the efficiency of their supply chain.
- Risk mitigation. Real-time air cargo visibility significantly improves situational awareness and accountability throughout the shipping process, enabling early detection of any irregularities or potential security threats. This transparency strengthens customer trust and enhances overall risk management by reducing uncertainty, improving communication, and enabling faster resolution when issues arise.
Looking ahead
Air freight transports more than USD $8 trillion worth of goods annually, according to the International Air Transport Association (IATA), and accounts for approximately 33% of world trade by value, with no signs of slowing down. With 95% of all purchases projected to be made through ecommerce by 2040, the need for fast cross-border shipments is on the rise. In fact, a recent global forecast estimated that express shipments will account for a quarter of all air cargo business by 2043, with ecommerce sales growth outpacing general cargo by a wide margin.
As consumer appetite for online shopping grows, freight forwarders will increasingly turn to air cargo to transport goods for their customers. But with the cards stacked against them – increased operating costs, shrinking margins, global supply chain disruption, intense competition, high customer expectations – they need to prioritize efficiency, transparency, and cost reduction in their air cargo strategy, processes, and technology choices.
Automated air cargo tracking delivers the competitive advantage they need to protect their bottom line while enhancing customer experience. With real-time shipment visibility, forwarders can accelerate and streamline their supply chain and make data-driven decisions to mitigate risk, curtail costs, and provide a higher level of customer service that ultimately boosts brand loyalty and drives recurring revenue.
Mike Hane, Director of Product Marketing, TMS at Descartes
