Logistics professionals are bracing for a year of persistent challenges in 2025, including labor shortages, strained US-China trade relations, and vulnerabilities in supply chains, according to industry expert Archival Garcia, CEO of Fluent Cargo.
While Garcia foresees no single disruptor dominating the logistics and transport sectors in 2025, he identifies the skilled labor shortage as one of the most pressing concerns.
“The skilled labor shortage will be one of the most critical challenges in 2025,” said Garcia. He explained that supply chains, particularly in shipping, are struggling to attract talent due to outdated systems and traditional processes. Compounding the issue, immigration restrictions are further shrinking the labor pool, affecting productivity across the board.
Garcia emphasized the importance of skilled professionals in navigating the air cargo industry’s shift toward intelligent technology.
“As companies race to adopt automation and other tech solutions, the talent gap becomes more pronounced,” Garcia noted. “This, combined with evolving customer expectations for price transparency and ongoing technological disruption, is steering the industry toward regionalized supply networks, moving away from reliance on long-haul supply chains.”
Looking ahead to trade lanes, Garcia highlighted the continued importance of the China-US corridor. He noted the potential for heightened activity if the US imposes tariffs on Chinese goods, particularly under Donald Trump’s administration.
“If tariffs loom, we could see a surge in shipments as companies rush to import goods,” Garcia predicted. “Despite political tensions, the trade dynamic remains strong—China has a product surplus, and US demand is robust. However, the key question is how these tariffs will impact businesses on both sides.”
He also pointed out that other countries, particularly in the Asia-Pacific region, could seize this opportunity to strengthen trade ties with China. “Nations like Australia may see this as a chance to build more robust partnerships and capitalize on shifting dynamics.”
Supply chain volatility in recent years has driven companies toward improved inventory management and vertical integration.
“Companies are increasingly diversifying procurement strategies and enhancing supply chain planning,” Garcia said. “We’re seeing moves toward vertical integration, as businesses take control of more elements in the supply chain to ensure reliability and efficiency.”
He cited recent industry consolidations, such as DP World’s acquisitions, as evidence of this trend. However, he acknowledged that progress is hindered by reluctance to share data across the supply chain, which limits collaborative potential.
While artificial intelligence (AI) is transforming supply chain operations with predictive analytics and enhanced resilience, Garcia stressed that human expertise remains critical.
“AI tools are advancing rapidly, but their effectiveness hinges on human input,” he explained. “The challenge isn’t just gathering data but identifying what’s relevant and ensuring its accuracy in real time.”
Fluent Cargo is actively working to bridge this gap by partnering with universities to develop methodologies for classifying disruptions and improving predictive capabilities.
“Our focus is on building reliable frameworks for predictions while simultaneously advancing technological solutions,” Garcia concluded.
As logistics professionals prepare for another year of challenges, Garcia’s insights underscore the importance of adaptability, strategic planning, and collaboration in navigating the evolving landscape of global supply chains.
Source: aircargonews.net