Archival Garcia. Photo: Fluent Cargo
Air cargo staff shortages, US-China trade and supply chain weaknesses are amongst the issues that will concern logistics professionals going into next year, according to one industry expert.
Fluent Cargo chief executive Archival Garcia believes many of the industry disruptors won’t be new and therefore planning ahead is key.
While he believes there won’t be one single biggest disruptor to the transport and logistics sector in 2025, he stated that “the skilled labour shortage will be one of the most critical challenges in 2025”.
Garcia added: “We’re already seeing this impact across supply chains, particularly in shipping where traditional processes and outdated systems make it difficult to attract talent. Immigration restrictions are further limiting the available workforce pool, affecting national productivity.”
Finding skilled professionals to manage air cargo’s continuing transition to using intelligent technology solutions is therefore essential, stressed Garcia .
“As companies race to implement automation and technology solutions, finding skilled professionals to manage these transitions will become increasingly challenging. This talent gap, combined with ongoing technological disruption and evolving customer demands for price transparency, is pushing the industry toward more regionalised supply networks rather than long-haul supply chains.”
Looking at trade lanes, Garcia said the China-US corridor is not surprisingly going to be a focus point in 2025, but he added that while the US-China relationship is under strain, other countries may be able to use this to their advantage.
“All eyes are on the China-US corridor given Donald Trump is in office and has talked about placing tariffs on China. Expect to see a surge in shipments and a mad rush to get product in if tariffs are looking likely to be implemented,” reflected Garcia.
“The dynamic is clear – China has a product surplus while US demand remains strong, making trade logical despite political tensions. A key question for 2025 will be how the tariffs will impact Chinese suppliers and American businesses. As a flow on effect, will other countries like Australia and others in the APAC region see this as an opportunity to build better trade partnerships with China and take advantage?”
Meanwhile, companies are becoming smarter in their inventory management strategies following recent supply chain volatilities, with a move toward vertical integration.
“We’re already seeing a shift toward diversified procurement strategies and more sophisticated supply chain planning. A notable trend is the move toward vertical integration, with companies taking ownership of more supply chain elements to enhance control and reliability,” said Garcia.
“This is evidenced by consolidations like DP World’s recent acquisitions. While improved collaboration across supply chains would be ideal, protective attitudes around data sharing continue to hinder progress.
Additionally, he noted that while artificial intelligence (AI) can help businesses embrace predictive analytics and improve their supply chain resilience, human expertise is essential to ensure companies effectively utilise this technology.
“While AI tools are advancing rapidly, their effectiveness remains dependent on human expertise in implementation. The key challenge isn’t just collecting data – it’s identifying what’s relevant and ensuring real-time accuracy,” commented Garcia.
“At Fluent Cargo, we’re partnering with universities to develop methodologies for classifying disruptions and measuring reliability. The focus is on building robust frameworks for predictions parallel to developing technological solutions.”
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