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Distressed Forward Air chugs along - just enough to breathe

There's nothing wrong with a company being proud of a solid operational update after it had been saved by lenders who had to relax covenants ever since a transformational, leap-of-faith deal was announced over three years ago. Fine with that. Forward Air (FWRD) management highlighted some record figures in the third-quarter (Q3 26) update released after US trade yesterday (9 November), but with that came a financial picture that still points to a business overly stretched. With just a handful of analysts - ...

Democrat success may mean more trade stability, but alongside tariffs

Following the Democrats' midterm US election victories, freight forwarders and importers could face greater stability in trade policy, but little immediate relief from existing duties. Nunzio De Filipis, co-CEO of CargoTrans, told The Loadstar Podcast the election result could slow the pace of tariff changes, although he expects the duties to remain. "I don't think we're going to see the lever being pushed as fast as it has been," he said, adding: "But I don't see them going away." He pointed to the survival of Section 301 tariffs on Chinese goods through successive administrations, noting that President Joe Biden had retained and expanded measures introduced during Donald Trump's first term. Reuters reported this month that Democratic control of Congress would provide greater opportunities to scrutinise President Trump's trade agenda, but noted that lawmakers faced significant obstacles to repealing tariffs, including presidential veto powers and existing executive trade authority. Similarly, the legislative and regulatory advisory arm of professional services firm EY explained in its recent trade policy alert that Democratic control would shift congressional committee leadership and increase oversight of trade policy. However, the advisory noted that the election result would not itself change the tariffs or presidential trade powers, while substantial legislative changes would still require sufficient Congressional support ,and either President Trump's signature or a veto-proof majority. For Mr De Filipis, however, the bigger development could be a shift towards stricter customs enforcement. He suggested that tougher enforcement could attract bipartisan political support, particularly where it protects customs revenue and businesses complying with import regulations. "I think we will start to see 2027 really be the year of enforcement," he said, and warned that importers were already experiencing increased audits and requests for information, with customs authorities increasingly leveraging technology to examine trade data more efficiently. Meanwhile, industry consultant Samantha Jones raised concerns about the wider economic implications of Democratic control, particularly for business investment, consumer spending, and freight demand. She suggested that potential increases in corporate taxation or regulatory costs could encourage businesses to reduce investment, hiring, and wage growth, although the policies ultimately pursued remained uncertain. "One potential risk I see is that higher corporate taxes or additional regulatory costs could encourage businesses to become more conservative with their budgets," she said. She also highlighted the importance of AI infrastructure investment to manufacturing, construction, and freight volumes, warning that additional regulatory obstacles could slow development. According to Ms Jones, economic growth has increasingly benefited from technology-intensive industries, meaning strong headline economic figures do not necessarily translate into broader freight demand. Her concerns extend to household purchasing power, with persistent inflation and slower wage growth potentially weighing on consumer spending and, consequently, demand for goods transportation.

Shenzhen air cargo operations face delays during APEC summit

Freight forwarders are warning of delays in cargo operations from Shenzhen Airport next week due to the Asia Pacific Economic Cooperation (APEC) summit taking place in the city. The summit runs from 18 to 19 November and is expected to see high-level leaders from around the world jet into the Chinese tech hub of Shenzhen. As a result, cargo operations at the airport are being restricted next week. Cargo carrier Teleport said that between 16 and 20 November, all international passenger flights operating to and from Shenzhen are prohibited from carrying cargo. It added that domestic flight capacity at Shenzhen Airport will be reduced by 80% during the APEC period to prioritise diplomatic and VIP flights, although it added that there was currently no official notice of international flight reduction for Shenzhen Airport. ANA said there were also restrictions in place for dangerous goods and perishables. The airline added that shipments will be accepted no later than 12 hours prior to the scheduled time of departure and that the collection time for imports is eight hours or more after the actual time of arrival. Sunny Worldwide Logistics said that airfreight operations in south China are expected to face "significant disruption" due to the restrictions. The logistics firm said that between 16 and 20 November, cargo flights from Shenzhen are expected to be suspended or diverted to alternative airports. Cargo acceptance on passenger flights may also be restricted, while additional security checks and transportation controls may affect cargo delivery to airport warehouses. Nearby Guangzhou airport may also experience increased cargo volumes and potential flight delays as shipments are redirected to the airport. Some restrictions are already being put in place at certain warehouses, such as a requirement for cargo to arrive within 24 hours before passenger flight departure or 36 hours before freighter departure. The logistics firm said that urgent cargo should consider cross-border trucking to Hong Kong International, while less urgent shipments should be delivered to the airport earlier, space should be booked three to four days ahead and documents should be prepared early.