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DAILY NEWS
NAVIGATING TURBULENT TRADE WINDS
I
n a year marked by seismic shifts in trade policy and logistics demands, companies have had to establish strategies to maintain strong operations amid constant volatility, changing regulations, and tariffs. “Recent months have seen the airfreight market navigate a complex environment marked by tariff changes, geopolitical tensions, and evolving trade
policies,” Alvin Tam, senior vice president commercial at TAM Group, explained. After air cargo posted a surprising 11.3 percent growth in 2024—boosted by
ocean freight disruptions and e-commerce resilience—2025 projections began with a cautiously optimistic 5.8 percent growth forecast. Yet, the introduction of US tariffs as high as 145 percent on Chinese imports at one point, and the elimination of de minimis thresholds for low-value goods, has complicated that outlook. “Spot airfreight rates on key routes such as China–US surged sharply—by 37
percent in March 2025—reflecting companies accelerating shipments ahead of tariffs,” he noted. “This, however, is expected to moderate as the market adjusts.” Tam sees e-commerce continuing as a vital growth engine, with projected annual
growth of 14 percent through 2026. However, he also emphasised that players are adapting: “Many Chinese e-commerce merchants are diversifying into new markets such as Europe and the Middle East to reduce reliance on the US market,” he said. These shifts are driving greater reliance on alternative sourcing models and fulfilment strategies, including bonded warehouses and nearshoring. Looking ahead, he anticipates that the sector will be shaped by supply chain
agility and region-specific initiatives such as Saudi Arabia’s Vision 2030. “National policies supporting infrastructure and technology investments will continue to be pivotal in shaping regional hubs and trade corridors,” Tam continued.
Local realities, global scale TAM Group’s 38 branches provide “on-the-ground market intelligence” to meet complex global needs. As global trade flows diversify, TAM Group is increasingly acting as a bridge between regional nuances and international consistency. “Our 38 branches across Asia, Europe, and the Americas enable us to respond to local market dynamics while ensuring integrated global connectivity,” Tam stated. In particular, he highlighted the China–South America corridor, which has seen a
mix of high-value perishables and e-commerce shipments. “This diversified cargo portfolio helps optimise yields and manage capacity fluctuations,” he explained. Strategic airline collaborations—such as Saudia Cargo’s expansion to Liège— underscore TAM Group’s growing influence in developing regional hubs and trade lanes. “Local offices provide on-the-ground market intelligence, enabling agile responses to tariff changes and shifting trade flows,” he added.
Express operations e-commerce has dramatically transformed expectations within logistics—and
GSSAs must keep pace. “With e-commerce’s rapid growth, we in TAM Group have transformed our role from transactional sales agents to strategic partners offering tailored, technology-enabled solutions,” Tam said. TAM has cultivated “close triparty relationships” with platforms such as Shein
and Cainiao, particularly in Asia, to enable speed and flexibility in fulfilment. The firm now works with carriers to optimise offline capacity and develop SPAs, while simultaneously investing in automation and AI tools for predictive analytics and real- time tracking. “These tools are not just about efficiency—they’re about providing customer experience that meets the sector’s demand for speed,” he expressed.
Sustainability and purpose Environmental, social, and governance (ESG) goals have become central to TAM Group’s operations. “Sustainability and ESG principles are deeply embedded in our core values and guide everything we do,” Tam stressed. The company has embraced energy conservation and waste reduction while
supporting local recycling and community outreach initiatives. “We encourage our teams to embrace sustainable habits, such as minimising single-use plastics,” he added. Inspired and guided by founder Dr Wing-Kun Tam, who enabled the ‘Sight First –
China Action’ campaign delivering eyecare to underserved populations in China, the company has been participating in more corporate events with a good cause, including the JP Morgan Corporate Challenge in Hong Kong. In fact, sustainability will also be a key theme in TAM’s presence at Air Cargo Europe 2025, where even the booth design and corporate souvenirs will reflect their eco-friendly ethos. “In sum, ESG and sustainability are not peripheral for TAM Group; they are fundamental to our identity and growth strategy,” Tam outlined.
Resilience and agility Reflecting on recent geopolitical and trade disruptions, Tam highlighted: “Recent volatility has reinforced the need for resilience and agility.” TAM Group’s ability to flex operations—including through charters and consolidated
shipments—has been vital in meeting customer needs amid shifting circumstances. Equally critical is the evolving relationship between GSSAs and airlines. “The
GSSA–airline relationship is becoming more strategic and partnership-driven,” Tam noted. “Airlines increasingly rely on GSSAs for market intelligence, route development, and digital solutions. We focus on high-yield cargo segments such as perishables and e-commerce, which support premium pricing.” As the air cargo sector braces for another period of disruption and transformation,
TAM Group is positioning itself not just as a logistics provider, but as a data-driven, sustainability-minded strategic partner. “The future,” Tam said, “will belong to those who combine agility with insight.”
www.aircargoweek.com
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