The National Customs Brokers & Forwarders Association of America (NCBFAA) and the Airforwarders Association (AfA) have joined forces to lobby Congress for critical funds to improve the handling infrastructure of air cargo at US airports. According to the organizations, the lack of investment in this essential aspect of the logistics chain seriously threatens its viability.
To help its members explain the severity of the situation to Capitol Hill lawmakers, the NCBFAA and AfA have collaborated on a two-page informational document, which is available to association members on the NCBFAA website.
The Airports Council International-North America (ACI-NA) has estimated that US airports require about $115 billion to improve their infrastructure through 2026, which equates to more than $20 billion per year. However, due to lagging financials, airports are expected to allocate most of the $25 billion in the Bipartisan Infrastructure Act to passenger, security, and safety measures, leaving insufficient funds to sustain air cargo operations. This could cause delays in time-sensitive products, negatively impact shipping costs, and contribute substantially to inflation.
Although air cargo growth is returning to normal following the impacts of COVID-19, it is expected to resume its more typical annual increase in demand, with an estimated increase of approximately 50% over the next 20 years. With many airports already facing extraordinary delays in handling cargo activity, a 50% increase in demand could crash their capacity, warn the NCBFAA and AfA.
In conclusion, the NCBFAA and AfA are urging Congress to recognize the critical need to invest in airport infrastructure to maintain air cargo operations and ensure the continued success of the logistics chain.
