#2: Continued market uncertainty

With regulatory changes on the horizon coming from a fast-approaching Brexit finale and the continued trade war between the United States and China, market uncertainty will challenge industry stakeholders’ operations into the new year.

As the March 29, 2019, deadline for Brexit draws near, no clear guidance or clues have been given as to how rules and regulations will play out. Aviation industry organizations are fiercely advocating for the United Kingdom and the European Union to hammer out an agreement. In the meantime, logistics companies warned carriers to prepare for potentially higher costs and process complexity, which may exacerbate already-existing strains on trade flows or have ripple effects throughout the greater European region. Some logistics companies have booked standby aircraft or are forward-stocking goods to mitigate against losses should negotiations result in a “no deal” outcome.

Moving east, the series of trade tensions ratcheted up between the U.S and China, and accentuated by a U.S. exit from the Universal Postal Union in October, have done little to reassure the air cargo industry against possible collateral damage. Despite operators reporting minimal impact to cargo numbers this peak season, as covered by our sister publication, Cargo Facts, industry experts expect continued market uncertainty into the new year and are warning stakeholders to form contingency plans.

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