News

The New Surge in Air Cargo: Opportunities for Chicago and the Air Freight Industry

Posted on | by Jim Slawnikowski

The International Air Cargo Association of Chicago (IACAC) and our members are at the forefront of a significant shift in the logistics landscape, driven by a robust surge in the air cargo market. A recent FreightWaves article illuminates this trend, highlighting a double-digit growth in air freight volume in the early months of 2024. This growth trajectory, spurred by increased e-commerce activity, manufacturing shifts, and geopolitical disruptions, positions Chicago as a pivotal hub for air freight, offering a myriad of opportunities for local and international logistics players.

The air cargo market's impressive start in 2024 is a beacon of optimism, especially for a city like Chicago, with its strategic position and extensive logistics infrastructure. The city stands to benefit significantly from the uptick in air freight volume, which is largely attributed to the robust e-commerce exports from Asia, particularly South China and Hong Kong. As international consumers lean heavily on quick delivery services for their online purchases, Chicago's air cargo capabilities are crucial in meeting these demands efficiently.

Red Sea Blues

Moreover, the geopolitical tension around the Red Sea has rerouted ocean freight, compelling shippers to pivot towards air cargo as a reliable alternative. This shift not only underscores the agility and flexibility of air freight solutions but also highlights Chicago's role in maintaining the continuity of global trade flows amidst disruptions.

For members of the IACAC and the broader air cargo industry, this wave of growth presents a strategic opportunity to reinforce Chicago's position as a key logistics hub. The city's advanced air cargo facilities and connectivity offer a competitive edge in handling increased volumes, ensuring that goods move seamlessly across global supply chains. Furthermore, this surge is a clarion call for innovation in air freight services, urging stakeholders to invest in technology and infrastructure that enhance operational efficiency and sustainability.

How Sustainable is the Growth?

However, the sustainability of this growth wave is a subject of discussion. While the current upturn offers a myriad of opportunities, it also invites scrutiny regarding its longevity. Stakeholders must consider factors such as global economic stability, trade policies, and the eventual normalization of shipping routes. Hence, it's imperative for the Chicago air freight community to leverage this growth period to build resilience, adapt to changing market dynamics, and foster long-term strategic partnerships.

The recent upswing in air cargo volume heralds a period of significant opportunity for Chicago and the global air freight industry. As stakeholders navigate this evolving landscape, the focus should be on harnessing this momentum to bolster Chicago's status as an indispensable node in the international logistics network, driving innovation, efficiency, and sustainability in air freight services. 

Embracing a Greener Horizon in Air Cargo Operations

Embracing Sustainability: A Greener Horizon in Air Cargo Operations

Posted on | by Jim Slawnikowski

As we edge closer to St. Patrick’s Day, a time synonymous with the color green, it's an opportune moment for members of the International Air Cargo Association of Chicago (IACAC) to reflect on the broader, more crucial aspect of 'being green' in our industry. The air cargo sector, pivotal in driving global trade, is on a steadfast journey toward embracing sustainability. This green transition not only signifies our commitment to the environment but also heralds a new era of eco-conscious practices that promise to redefine our industry standards.

The Imperative of Sustainability in Air Cargo

The air cargo industry stands at a crossroads, where the path to sustainability is not just a choice but a necessity. As global awareness and regulations around environmental conservation tighten, companies are increasingly adopting sustainable practices. These measures not only help mitigate the environmental impact of air cargo operations but also ensure compliance with evolving global standards, thereby securing a competitive edge in the international logistics landscape.

Eco-Friendly Practices Take Flight

Many IACAC members are already leading by example, integrating eco-friendly practices into their operations. From optimizing flight routes to reduce fuel consumption and carbon emissions to investing in more fuel-efficient aircraft, the efforts are multifaceted. Additionally, the adoption of electric ground handling equipment and the implementation of paperless documentation processes are tangible steps being taken to minimize the environmental footprint of air cargo activities.

Innovation at the Heart of Green Technologies

The future of air cargo is inextricably linked with the advancement of green technologies. Innovations such as sustainable aviation fuel (SAF) are making inroads, offering a significant reduction in greenhouse gas emissions compared to conventional jet fuel. Moreover, the exploration of electric and hybrid-electric aircraft presents a groundbreaking opportunity to revolutionize air cargo transportation, steering it towards a more sustainable future.

The Way Forward: A Collective Endeavor

The journey towards a green future in air cargo is a collective endeavor, requiring the participation of all stakeholders. By sharing knowledge, resources, and best practices, IACAC members can lead the charge in transforming the industry. The association's role in fostering collaboration and innovation among its members is crucial in this regard, paving the way for a sustainable, eco-friendly air cargo industry.

As we celebrate the greenery of Spring in the coming weeks, let's draw inspiration from its vibrant green hue to bolster our commitment to sustainability. The path to a greener future is both a challenge and an opportunity, one that the air cargo industry, guided by the collective efforts of the IACAC community, is well-equipped to embrace.

Evolution of Air Cargo: Past, Present, and Future – Chicago’s Pivotal Role

Posted on | by Jim Slawnikowski

Welcome to the latest edition of the International Air Cargo Association of Chicago's (IACAC) monthly blog. In this feature, we invite you on a fascinating journey through the evolving world of air cargo. Our exploration takes us from the historic roots of this dynamic industry to its current bustling state and onto the exciting possibilities of the future. At the heart of this story is Chicago - not just a city but a pivotal force in the air cargo sector. Join us as we uncover how this industry began, where it stands today, and the promising horizons we're heading towards, with our beloved Windy City playing a crucial role at every step.

The Past - A Journey Through History

The story of air cargo began more than a century ago, with the first recorded air freight shipment in 1910. Since then, the industry has witnessed remarkable transformations, evolving from mail transport to accommodating massive cargo shipments, pivotal in global supply chains.

Chicago, with its strategic location, emerged as a key player in this evolution. The establishment of Chicago Municipal Airport, later renamed Chicago Midway Airport, in 1927, and the subsequent development of O'Hare International Airport, played crucial roles in cementing the city's status as an air cargo hub. These airports facilitated not just passenger movement but also the flow of goods, contributing significantly to the region’s economic growth.

The Present - Current Trends in Air Cargo

Today, the air cargo industry is a complex, dynamic system, integral to global trade. The latest statistics reveal a robust growth trajectory, accelerated by trends like e-commerce and technological advancements. In Chicago, O'Hare International Airport is one of the busiest airports for cargo in the United States, handling a significant percentage of the country’s air freight.

The rise of e-commerce has been a game-changer, leading to increased demand for faster delivery times. In response, air cargo operators in Chicago have adapted with innovative solutions, enhancing efficiency and capacity. Technological advancements in tracking, logistics, and sustainability initiatives have also redefined the operational landscape.

The COVID-19 pandemic posed unprecedented challenges, underscoring the sector's resilience and adaptability. Amidst global lockdowns, air cargo played a crucial role in transporting essential goods and medical supplies, with Chicago serving as a vital link in this global effort.

The Future - Predictions and Projections

Looking ahead, the future of air cargo is poised at the brink of revolutionary changes. Technological innovations, including drone delivery and AI-driven logistics, are set to redefine the industry. Predictions suggest a surge in demand for air freight services, propelled by evolving global trade patterns and economic growth.

For Chicago, this future brings both challenges and opportunities. The city is expected to continue as a significant global air cargo hub, necessitating investments in infrastructure and technology to keep pace with growing demands. However, challenges such as environmental concerns and the need for sustainable practices also loom large.

The journey of the air cargo industry is a testament to human ingenuity and the relentless pursuit of efficiency and connectivity. Chicago, with its rich history and strategic significance, has been and will continue to be a key player in this narrative. As we embrace the future, it is crucial for IACAC members and stakeholders to stay abreast of these changes, adapting and innovating to maintain our pivotal role in this ever-evolving industry.

We encourage our members to actively participate in IACAC events and forums, fostering a community of informed, engaged professionals ready to navigate the future of air cargo. Not a member? Learn more here and become part of the conversation today.

The IACAC Announces 2021 Scholarship Winners!

Posted on | by Scott Case

The IACAC is thrilled to announce our 2021 scholarship winners!

Every year the IACAC works hard to raise money for exceptional college students and this year we were fortunate enough to give out awards to four students for $1500 each. The scholarship fund is created and maintained by raising money at our annual golf outing, networking events, and donations from members like you!

Congratulations to Anthony Divenere, Mia Crotty, Lilly Sato, and Cathlene Tomas!

The award presentation will take place at our annual holiday luncheon and raffle on Tuesday, December 14th.

Register now to attend and support our future leaders as we celebrate their success and feed next year's pot with raffle giveaways!

On behalf of the IACAC Scholarship Committee, we congratulate the winners and wish them great success!

President’s Letter: October, 2021

Posted on | by Scott Case

This is the second to last President's letter that I will write for the International Air Cargo Association of Chicago. Next month, we are holding elections and someone else will hold this seat and will be the voice you hear from beginning in December. Until then, you're stuck with me, and all the sappy stuff will come in next month's edition.

For now, I've got to say "thanks" for a bunch of great things that happened this month and that wouldn't have been possible without our members and a host of friends and guests.

The IACAC had not one, but two major events in October. The first was a bus trip to Rockford International Airport. Our group was small, but mighty. It's not the most socially distanced ride I've ever had, but twelve people with a coach bus to themselves felt like some kind of kick-ass school field trip that we absolutely stole it taking. Thanks to Dave Junkroski and PayCargo for helping to underwrite the cost of the bus. Thanks to Ken Ryan, Zach Oakland and Rockford International Airport for the tour and lunch.

For those of you who weren't there, you missed a lot but nothing better than this:

Bus. Down. The. Runway.

That's all I'm telling you - find somebody who took the trip and ask them. But watch the video:

Our second event was our annual Oktoberfest at Church Street Brewing in Itasca. You could have knocked me over with a feather when I arrived and the tasting room was, I don't know, four times the size of when I last saw it pre-pandemic. Kudos to Lisa and her team for what they've built. Kudos to the 50 or so attendees we had at the event. Kudos and thanks to cargo.one, BCS Placement, B&R Transportation and Basic Crating & Packaging for their sponsorship of the event.

Prost!

Looking ahead, there are a number of things that I'd like to ask everyone to please remain focused on between now and the end of the year.

  • We've got an amazing luncheon next week with invited representatives from the ground handling companies at ORD who are operating multiple facilities. We have confirmations (as of 10/6) from Swissport and AGI. We have invited, and anticipate speakers from, WFS and MIC Cargo as well. Register here. NOTE - We're in conference room "Hotel" on the first floor, not the usual second floor big room.
  • Immediate family members of member companies and individual members can apply for the IACAC Scholarship. Applications are being accepted through the end of November. Learn more here.
  • Next month are our elections, and a number of board seats and the presidency is available. Please contact me if you're interested in running.
  • The holiday party is coming up in December (it'll be here before we know it) and it is at Coopers Hawk Winery in Arlington Heights. Stay tuned - calls for sponsorship this month will be coming and start planning on raffle items to benefit our scholarship fund.

President’s Letter: September, 2021

Posted on | by Scott Case

This year marks the 20th anniversary of the September 11th attacks that changed the world in ways too numerous to count. The most important thing to keep front and center in our minds are those who lost their live at home and abroad. Whether in the attacks, the subsequent war effort which drew to a close last month in Afghanistan, from injuries or exposure during the cleanup or the untold number civilians caught in harm's way, the world has paid a price too great to be tallied.

Seen through the prism of air cargo, the changes brought on with the creation of the TSA and the security programs that are in place today evolved over that time. I had a front-row seat for it, representing the NCBFAA as their air freight committee chairman and participating in seemingly monthly stakeholder meetings at the new agency, mostly with the AfA's Brandon Fried by my side representing the interests of air freight forwarders.

The continued need for vigilance through the air cargo supply chain has not waned during this time - it has only evolved. Technology has evolved, canines have been added and the worries about cargo have expanded beyond bombs in boxes to unsafe batteries and potential cyber-intrusions. All of which is to say that the need for the air freight forwarder and the importance of our role in the supply chain is not just focused on keeping air freight moving through congested supply chains, but continuing to keep the flying public safe as they return to the skies for personal and commercial travel.

Golf Outing Thank You's:

We held the annual golf outing last month and have posted up an assortment of pictures here on our website. This event doesn't happen without a lot of help from a lot of people and groups. Thank you to:

  • Chuck Menini
  • Brian Bartolotta
  • Ben Pecoraro
  • Christine Aguirre
  • Laura Candella
  • Therese O'Sullivan
  • Jim Slawnikowski
  • The staff of Bridges of Poplar Creek Golf Course

Without all your efforts, the day would not have been possible. Thank you as well to our sponsors:

We're really looking forward our next social event at Church Street Brewing Company as we return to our traditional Oktoberfest party on Thursday, September 23rd. Sponsorship opportunities are available - contact me to learn more.

President’s Letter: July, 2021

Posted on | by Scott Case

The excitement as I look ahead to this month, next month and the rest of the year is thanks to the optimism and hard work of everyone who has done their part to get vaccinated and to get things back to normal.*

*or whatever passes for it as we continue to emerge from pandemic behaviors

Here in Chicago, air cargo continues to remain busy as we see in the figures that the Chicago Department of Aviation shares with public and private sector stakeholders. There were a number of stories this week as well surrounding passenger screening figures at O'Hare and as someone who traveled for the first time post-pandemic last month, it was really an exercise in muscle memory - where to park, what luggage best fits the trip and needs and even ensuring the toiletries bag was stocked with stuff that - by and large - doesn't come with an expiration date.

For the air cargo business, July 1st was a huge day. It was the day that the new screening requirements for freighter aircraft came into effect, and that's the reason we picked it as the topic for our July luncheon featuring Lufthansa Cargo, Jeff Koehl of Global K9 Protection Group and IACAC Board Member Bill Gerst from PTS Logistics. Register now - we'll feed you this time, albeit a Panera box lunch, and it'll be a chance to talk about what's happening in a non-SSI context.

Later next week, IAC's going to the Dogs - the Chicago Dogs, specifically. Our first networking event back will be outdoors and socially distanced with the Chicago Dogs on Thursday evening. Tickets are still available as are sponsorships to help cover the event for your fellow attendees. Support the IAC, see people you've not seen for a while and we hope to see you on Thursday evening.

Most excitingly, we're golfing next month again. Mark your calendars for Tuesday, August 10th at the Bridges of Poplar Creek. Get your early bird foursomes booked as well because we're filling up quickly. Due to course limitations, sponsors will not be able to offer food on the course, but we will still have plenty of places for liquid libations sponsored by great companies like Alaska Air Cargo and others. Stay tuned "fore" more on sponsors - and be sure to stick around and please bring a raffle item to benefit the Scholarship Fund - because that's what this whole thing is about, anyways.

President’s Letter: June 2021

Posted on | by Scott Case

The IACAC is excitedly looking ahead to the summer and the rest of the year and wanted to let everyone know what we're looking ahead to.

Next Tuesday's IN PERSON MEETING - Charters

We're not able to serve food just yet - but attendees will get a $10 gift card to a local restaurant to get their own meal. 

Charters are continuing to hold sway with forwarders and airlines even as passenger flight schedules are returning throughout the summer. Forwarders - and airlines - each have a role to play in the sourcing and scheduling of these complex but important flights. Join us Tuesday to hear a representative from United Airlines as well as someone from our local forwarding community talk about charters and what's involved in their planning and execution. Register here. 

Seeking sponsors for Chicago Dogs game in July

We're planning our first social gathering in July at the Chicago Dogs. Your sponsorship will underwrite the cost of admission as well as food and beverage tickets for our attendees. We're still finalizing the event, but sponsorships are available for $100, $250, $500 and $1000. Sponsors will get the attendee list and also be able to provide literature or giveaways - we cannot have signage inside the park. If you're interested in sponsoring, send an email to info@iacac.com and we'll work out the details.

Golf Outing August 10th!

Don't miss it - we're back and spots are - honestly - going quickly. We've got capacity for up to 144 golfers and are planning our luncheon afterwards.

Sponsorships are available for the golf outing as well including breakfast, on-course opportunities to sit and network with golfers, lunch at the halfway house and more. PLUS we'll have our traditional post-golf luncheon and raffle to benefit our Scholarship Fund.

To register, check out the event page and get signed up! We'll be making contact with 2019 sponsors who get right of first refusal here in 2021 for the holes they were on previously.

Oktoberfest!

Yep - we'll be back at Church Street. Mark your calendars for Thursday, September 16th for our annual event. Beer, music, food truck - fun. We're looking forward to getting back together with everyone.

President’s Letter: May, 2021

Posted on | by Scott Case

The rollercoaster ride appears to be...continuing...for those of us in the world of logistics. Whether shipping by air, ground or ocean, rates are through the roof for our customers and in exchange for these sky-high prices, we're experiencing rock-bottom levels of service.

There has always been an uncomfortable and tenuous relationship with underlying service providers because our companies may have been the ones to select them for the service, yet regardless of how long-tenured the friendships and relationships may be, they are unable to stave off days-long delays in recovering air freight, weeks-long delays in intermodal rail movements and rates that are triple or quadruple what they were just two short years ago between common ocean freight origin and destination pairings.

If you think this is a thankless position to be in - don't. Your peers know, the experienced logistics and purchasing managers at your shippers know and the more sympathetic carrier representatives know as well. And all are grateful for your continued hard work and adaptation for now the fifteen months of hard work.

Here at the IACAC, we're looking ahead excitedly at a number of things that are happening and want you to be aware of them.

Membership harmonization: We are bringing together our CRM, our website records, our email distribution list and accounting together in a more cohesive fashion. We all use a variety of best-in-breed tools in our offices and the goal is connectivity and communication among them. We're no different.

Beginning with new memberships and renewals this year, we are moving to a membership that is one year from the date of sign-up or renewal. This was driven primarily by the fact that 97% of our memberships are paid by credit card and it was much easier to set them for annual automatic renewals.

We also have probably a dozen people and companies who thought they renewed back in January (myself included) only to discover that the membership type that was created did not charge credit cards, even though they were provided. Our treasurer Therese O'Sullivan is working hard to go through that list and if she's reached out with an invoice or a request to process your card again, that is why.

Golf news: We have been given the green-light for up to 144 golfers - the usual contingent for our annual outing. It will be held on Tuesday, August 11th at Bridges of Poplar Creek with the same usual registration and start times (shotgun at 8:30). We have been given the green light to have sponsors on the holes. The past few years we've done food and alcohol on the course and those are - for the moment - in flux. Alcohol may be staff-constrained because as our sponsors well know, course employees must pour. Right now, it looks like one hole each on the front and back, two beverage carts and the turn at the clubhouse. Registration for golf will open later in May.

A personal congratulations as well to Adam Rod from the Department of Aviation. I have had the pleasure of working with Adam for a number of years now and he has been our liaison for issues with congestion and O'Hare-related issues. This past month, Adam's position changed and his new title is Assistant Commissioner, Cargo Operations and Development. Rather than 20% of his time being spent on cargo, it will now be a full-time job with an office and support staff he must build.

Given the tremendous growth in air cargo that ORD saw during the pandemic even given the severe constriction of passenger flights but uptick in both phfreighters and freighters, an airport representative tasked with making O'Hare a better cargo experience for all stakeholders is welcome news. Congratulations, Adam.