In the heart of one of the world’s most critical trade hubs, the FIATA International Federation of Freight Forwarders Associations World Congress 2024 brought together industry leaders, innovators, and policymakers to explore the main topics at the centre of global trade.

Set against a lush, bustling Panamanian backdrop and its famed canal, this conference buzzed with bold ideas about how to navigate today’s most pressing challenges—and capitalise on opportunities—in an ever-evolving global logistics landscape.

Whether it’s local setbacks impacting the canal itself, or more global issues such as geopolitical events and weather phenomena, the message was clear: the world of logistics is undergoing a seismic shift, and those who adapt will thrive.

Opportunity for air cargo

For anyone in logistics, the Panama Canal is a beacon of efficiency. That said, it’s been quite congested as of late. Currently operating at 110 percent capacity at some points, the canal’s bottlenecks are causing significant delays for cargo shipments.

Tomás Douglas, General Director of Panama’s Maritime Authority, described the current situation as both a challenge and an opportunity: “New projects are currently being proposed to relieve the bottleneck and improve the flow of cargo.”

However, there could be a silver lining for airfreight: “The Panama bottleneck could actually present an opportunity for air cargo, especially for lighter, more urgent goods because they can bypass the canal entirely.”

While airfreight may be a pricier shipping option, this ongoing congestion means companies may increasingly turn to air for a faster alternative. The takeaway? For those in air cargo, this moment is a potential turning point—an opportunity to shine by offering the speed and reliability ocean cargo lacks at the moment.

Wild cards

The political situation in Panama was also a contested topic at the congress, especially among locals on the convention room floor. With a newly elected government merely three months into office, uncertainty abounds about how leadership will address the trade and infrastructure challenges the country currently faces.

It’s too soon to say how this government will address trade policy or respond to these challenges. However, the logistics world is watching closely, to see if, when, and how the new administration will act to ease strain on the Canal and bolster the country’s key role in global trade.

In a time where the global economy is being reshaped by everything from political conflicts to climate change, forwarders and government officials alike must confront a stark reality: globalization, as we once knew it, is evolving.

Former Panama Canal Administrator, Alberto Aleman Zubieta, addressed the crowd, and summed it up best, stating: “Globalszation is reorganising and becoming something new. It won’t be easy, but if we can navigate this shift, it could lead to a more sustainable and thriving global economy.”

For logistics professionals, this shift also means a focus on sustainability. Increasing environmental regulations, reducing carbon emissions, and navigating unpredictable climate patterns—such as El Niño, which significantly disrupted trade in Panama this year—are forcing companies to rethink their practices.

While the aforementioned challenges are immense, the potential rewards reaped by overcoming them could be even greater.

Wings of innovation

As the global economy becomes more digitised, the logistics industry must keep pace, or risk playing catch-up until it can.

Philippe Isler, Director of the Global Alliance for Trade Facilitation and executive committee member of the World Economic Forum, noted: “e-commerce is here to stay, and in order to meet the enormous demand it brings, companies and authorities need to collaborate and aim for more predictable and efficient shipping practices.”

According to Isler, 40-50 percent of customs work is now digitised, but the potential for more is vast. Yet, he warned, “Automation requires knowledge and skill, so using new technology without the proper training is easy to do poorly.”

Approached with care, AI and other emerging technologies will revolutionize global trade, making for a faster, more reliable, and less disrupted supply chain. That said, the logistics sector will need to work hand-in-hand with the authorities to ensure that these systems are implemented smoothly and work seamlessly across international borders.

Cleared for takeoff

As FIATA 2024 came to a close, the message was clear: the logistics industry is standing at the precipice of a major transformation. From digitally-driven business platforms to new trade corridors and stronger collaborations between the government and the private sector, the future of freight forwarding will be defined by how quickly—and creatively—the industry adapts to these changes.

The journey to a more innovative, predictable, and sustainable future poses myriad challenges. Congested ports, geopolitical conflicts, climate change, and the endless red tape trusted forwarders face at borders are just a few of the hurdles the industry is working on clearing. But the opportunities for innovation and growth are equally significant, if not more so.

By embracing change and fostering collaboration, the logistics sector is working on positioning itself to thrive in the digital age. This means the industry adapts to the times and people get their goods when they need them. That said, as with those goods arriving, the only question is when.