Geoffrey Arend, Bob Imbriani,Brandon Fried, Jim Foster Award

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   Vol. 24  No. 17

Tuesday April 8, 2025

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Indian Tariffs

     On April 2, U.S. President Donald Trump with "friendly" reciprocal tariffs celebrated “liberating day” in the White House Rose Garden stating, “we’re getting back some of the wealth that very, very foolish Presidents gave away because they had no clue what they were doing.”
     Then President Trump announced a 10% tariff on imports. The U.S. will also levy an additional 50% of the tariff levied upon its goods by trading partners.
     We can imagine that some smart traders might see the light of lowering their tariffs on U.S. goods, thus lowering tariffs levied against them at 50% under the Trump plan.
     But for a moment let's look briefly at India.
     Will these increased duties disrupt India’s export-oriented industries—such as pharmaceuticals, gems and jewelry, textiles, automobiles, and medical devices—and also lead to losses for Indian exporters? No doubt likely to be rising prices, In the automobiles sector, for example, higher tariffs on exports to the U.S.
     Experts predict that a few companies like Mahindra and Mahindra Limited [Automotive and Farm Equipment Business] and Maruti Suzuki India Limited will be most affected by the tariffs.
     Other than the automotive sector, the medical devices and the pharmaceutical sector will be affected. Cost of exporting to the U.S. will rise considerably and Indian manufacturers will have to seek other markets.
Pankaj Chadha     The other sector that will feel the effect of tariffs will be textiles, which has been a major contributor to Indian exports. High tariffs set to be implemented by the U.S. surely will lead to a slowing down of demand from the U.S. and affect exports. The same will be the case with the gems and jewellery sector where the high duties will see a drastic cut in demand from U.S. buyers. However, exporters from India are hoping that ongoing trade negotiations and tariff adjustments will ease the situation.
     Quoting India's Pankaj Chadha, Chairman of the Engineering Exports Promotion Council:
     "We are not going to sit back and take the punches. India will have to take reciprocal measures to deal with it.”
     In 2023-24, India exported $18 billion worth of engineering goods to the U.S. In fact, India’s Commerce Minister Piyush Goyal was in the U.S. recently to negotiate with U.S. officials. Reportedly India has reduced tariffs on several U.S. exports, including high-end motorcycles and whisky and more reductions are expected upcoming.
Piyush Goyal     With U.S. tariffs threatening key exports, India is looking elsewhere to soften the blow. One approach on the table is a move to boost domestic manufacturing and secure new trade agreements. Other than exports from India, the Trump tariffs will impact the air cargo sector.|
     Air cargo has long played a significant role in the efficient movement of goods. It is noteworthy that in 2022, India’s non-agricultural exports to the U.S. amounted to US$81.16 billion. Air cargo played a significant role in the efficient movement of goods. However, those were the good old days.
     Today, with fresh tariffs and changes in regulations, new challenges have emerged. These challenges will hinder trade volumes and necessitate changes in logistical strategies. 
     A major hurdle that India’s air cargo industry faces is customs clearance. Some reforms have indeed taken place to increase efficiency—such as faceless assessment and single-window clearance. However, the focus on tariff classifications and duty structures has led to longer processing times for certain shipments. If these shipments include pharmaceuticals and perishables that must be cleared quickly, the entire process becomes critical. Experts have indicated that customs procedures need continued modernization to enhance India’s trade competitiveness. 
     To enable Indian airports to be more competitive and appealing as global hubs, like Dubai and Singapore, the Ministry of Civil Aviation is in discussions with the Home Ministry to implement specific measures. These include the elimination of rescreening. Relevant departments have started talks to remove the requirement for rescreening international passengers, their luggage, and transshipment cargo at airports where they transit. 
     Additionally, the government is considering conducting immigration procedures at the passenger's first or final destination, rather than at intermediary airports. While these moves will improve efficiency and reduce delays for both passengers and cargo, they will facilitate trade since the relaxation of cargo screening norms can promote global trade and reduce costs for businesses. Currently, passengers traveling from Bengaluru to San Francisco with a layover in Delhi must undergo immigration checks in Delhi, which could be streamlined with the proposed changes. 
     Additionally, experts have suggested adopting risk-based inspections to shorten clearance times. Moreover, the establishment of high-tech digital infrastructure at major air cargo hubs—including Delhi, Mumbai, and Bengaluru—will eliminate operational bottlenecks and enable seamless cargo movement. 
     It is important to note that with approximately 38 percent of India’s total non-agricultural airfreight exports destined for the U.S., the Indian government is keen to introduce policy initiatives to ensure continuity of trade. To start, air cargo infrastructure is being prioritized through enhancements in dedicated freighter capacity and multimodal connectivity between air and sea freight networks, even as preferential trade agreements (PTAs) and new duty structures come into effect. 
     Experts emphasize that India’s air cargo sector must be nimble and quick to adapt to regulatory developments. While the Indian government has announced its Mission 2030, which aims to expand air cargo handling capacity to 10 million metric tonnes, it requires a coordinated approach that includes regulatory synchronization, technological integration, and infrastructure enhancements to achieve sustainable progress in India’s air cargo ecosystem. 
     Now the cards are on the table and so is hope that new accords can be agreed upon.
Tirthankar Ghosh/GDA



Hong Kong Autonomous Ramp Tugs

     Unless for some reason you have been on the front lines out on the ramp at Airport Authority Hong Kong, you are probably unaware of the silent revolution going on as this airport embraces autonomous self-driving vehicles.
     My memory does not go back far enough to recall when the subject of self-driving ramp vehicles was first whispered in the hallowed halls of aviation, and particularly the ground handling community, suffice to say it was a good number of years ago, but now we see Hong Kong, cutting past the discussions and moving fast into implementation.
     Stand pretty well anywhere on the airside of HKG and one will not have to wait long before along will come a blue painted driverless tractor, complete with flashing amber lights, pulling a dolly train loaded with pallets of cargo.      Unlike busses they don't all come along at once but go to any of the various dedicated parking spots where these vehicles hang out when not deployed and also of course autonomously re charge. One can relate to the scale of this development.
     And this is just the start, actually the airport already has autonomous security patrol vehicles and autonomous ramp busses, while the incredibly high-speed wireless system that covers the airport and its surrounds provides a platform for massive adoption of this technology.
Bob Rogers


Hong Kong package

     Recently after a series of articles we published (here) and (here) on the subject of De Minimis, we created a shipment to measure what impact if any, a small package moving from Hong Kong China to New York City might encounter?
     On Wednesday March 12 at 13.57 local time at HKG, our Bob Rogers tendered a small package containing a couple of items including a small thermos flask and a new HDMI cable; the sort of items that might be ordered by someone in USA, as example from the website, Temu.
     The goods were declared as commercial and given values of less than USD$25.
Bob also dropped an Apple Airtag in the box and we sat back and watched the show.
     By Friday morning the box was already at the airport airmail facility at Hong Kong, and then very strangely by that night the tag was reportedly somewhere five miles above the Rocky Mountains . . . we guess, because a passenger upstairs on the flight deck had their i-Phone switched on!
     By Saturday morning the parcel was situated inside the cavernous Morgan Mail Distribution Center located on 9th Avenue in Manhattan, New York City.
     Morgan is the big-daddy that handles more packages and mail than any other facility in USA including all traffic bound for delivery from John F. Kennedy International Airport (JFK).
     On Monday March 17, our faithful and always on-time, smiling United States Postal Service postal person hand-delivered our package with our regular mail into the FlyingTypers office.
     So there you have it . . . a commercial shipment travelled half-way around the world without any kind of payment.
     Despite all “the hoopla” on changes that De Minimis rules might impact small package shipments with value of less than USD$800, its seems in this case at least, it was the same-old, same-O.
     However right now shipping via China Post and USPS Postal, the handling and delivery of small packages, at least from China to USA, will have a tariff of USD$25.00.
Bob Rogers


FlyingTalkers podcastFlyingTalkers

India Tariffs April



Brandon Fried, Glyn Hughes, San Mendenhall, Steven Smith, Brian Bourke

     Somewhere between the mechanical bull and an opulent sumptuous gathering in Dallas, Texas Early in March 2025, several sessions at AirCargo Conference did manage to get down to where the rubber meets the road for the three unique host associations including Air & Expedited Motor Carriers Conference (AEMCA), Airports Operators Council North America (ACI-NA), and Airforwarders Association (AfA).
     Bringing together three influential associations in air cargo, freight forwarding, airlines and airports is no easy walk in the park.
     These people mean business and although their works may be diverse, somehow year after year they come together and combine efforts over the proposition of doing some good for each other!
     “Our associations link us to powerful thought leaders so we can bring the most progressive insights to our attendees,” is the pitch that leaves little doubt that coming together amongst this tri-faith group is like the ever-ready bunny that goes on and on and on.
     A panel about Humanitarian Mission logistics might take a back seat for attention from the likes of AI, Trade Politics, high adventure in old airplanes with Mikey McBryan of Buffalo Airways and other pursuits of an all too short trade show, but at AirCargo 2025 for an hour plus on Tuesday March 4, a panel captured the emotion and purposed sense of making the caring work, spotlighting some direct brilliance on the subject of Humanitarian Logistics.
     To Brandon’s question of how can air cargo advance humanitarian logistics:

Glyn Hughes said:
     “As an industry we are constantly attacked for being baddies when it comes to sustainability.
     Sustainability is about global prosperity. It’s taking care of your fellow man.
     When there is a crises like COVID, the vaccines got to where they had to be by airlines, period.
     Ukraine emergency required getting through desperate airspace needing all kinds of negotiating to create insurance for those flights.
     Air cargo is always there and the industry should unite across the board to get that word out, whilst integrating more ideas to help others. The associations need to have a much louder global voice.”

Sam Mendenhall said:
     “We tell our people, talk to your customers and share the airlink story. At American Airlines, humanitarian involvement is a very robust program, part of our business philosophy.
     At times emergency help and action has been no further away than a call to our headquarters from a local AA-person on the scene of need. Sometimes it is as easy as people having the conversations. Response is faster and talking helps in creative solutions.
     It can be as simple as people being encouraged to donate miles so that doctor’s nurses and aid workers can get to where they need to be.”
 
Steven Smith of Airlink, the famous 32-year nonprofit organization that partners to transport relief workers and emergency supplies for NGOs at rapid-onset disasters and other crises around the globe sent out the call to attendees and helpmates alike at AirCargo Conference:
     “No one organization can accomplish sending emergency relief alone. We are a near-term solution for helping communities.
     Most important is to evangelize what we are doing. Get the word out.
     Talk to your team members, service partners, customers and tell them what Airlink is doing for humanitarian logistics.”
    
Brian Burke said:
     We need to work together. During Haiti, we did not have enough space, so we reached out to a competitor and they came through.
     There is a business case for helping.
     You are doing something good, donating resources and knowledge of logistics to NGO’s and those in need.
     Smaller NGOs desperately need help. In our view providing logistical solutions can fill that need.
     Finally donate, volunteer.
     Help Airlink. Help Project C.U.R.E.”
GDA/SSA



Madison Luciani


     Came across an uplifting post on Linkedin and thought to share it here with some additional thoughts of the recently concluded AirCargo Conference in Dallas, Texas.
     “I love this show more and more every year! AirCargo 2025 has officially closed! It truly takes a village to produce this show.
     “Thank you to the entire planning committee for all your hard work on putting together everything from keynotes and sessions to mechanical bulls and karaoke.
     “Can’t wait to see all 1,029 of you again in Orlando, FL 2026!” Madison Luciani, Assistant Executive Director - ECA & AEMCA (Air and Expedited Motor Carriers Association) . . .
     Yes, Madison, this event that you worked on to make a success is for everyone and is a driving force in setting an example that the forwarders, truckers and airports can be friends and together deliver the goods for an All-American feeling of welcome.
     Love your show and especially the final dinner that invited guests to sing their hearts out or ride the mechanical bull.
     I thought, you don't have to know the language for the moon in the sky, the Tex/Mex on your plate or the look in every one’s eyes.
     Sweet indeed, and everyone getting out of bed that first day to Mikey From The North who keynoted about his life surrounded by vintage aircraft, having just completed the past six months of operating flights in 40 below weather in Northern Canada, where occasionally a live Buffalo would run alongside his drive time, was pitch perfect.
     AirCargo Conference 2025 was an absolute slammer (exclamation point) underscoring that this is a place, a sanctuary really, for all that is unique, informative, value for money and fun!
     Thanks for the memories . . .
GDA/SSA



FTM2025

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Publisher-Geoffrey Arend • Managing Editor-Flossie Arend • Editor Emeritus-Richard Malkin
Senior Contributing Editor/Special Commentaries-Marco Sorgetti • Special Commentaries Editor-Bob Rogers
Special Assignments-Sabiha Arend, Emily Arend
• Film Editor-Ralph Arend

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