The strong US dollar making exports more expensive is proving a challenge to members of the Los Angeles Air Cargo Association (LAACA).
President Amy Grat says the ebbs and flows of imports and exports due to macroeconomic trends in trade have impacted LAACA members, and transportation pricing has become an important lever.
Grat says: “The supply chain has become more integrated. This has been a benefit to larger companies, but at times smaller players get squeezed. Smaller freight forwarders need to be nimble to compete effectively.
“The trend toward integration and supply chain optimisation is well established in the LA Customs District, with LAWA and its ocean counterparts, the Ports of LA and Long Beach, actively seeking developing programs to unite the supply chain.”
Grat says there are other challenges: “Against the backdrop of macroeconomic trends that impact goods movement, the other challenges our members face are congestion and waiting times at LAX. In a business climate where margins are thin, customer service is key. Our members are concerned about infrastructure limitations and 3rd party handling and overall cargo processing times.”
LAACA’s membership is drawn from a variety of stakeholders, and Grat says: “New opportunities are emerging in clean technology, advanced manufacturing and aerospace. LA is known for creativity and innovation, and is home to some of the hottest new tech-oriented companies in the transportation and logistics sector, including Cargomatic and Hyperloop One. We are optimistic for our region and for our industry.”