Airforwarders, NCBFAA Raise Alarm that Infrastructure Spending Will Neglect Cargo
The Airforwarders Association and the National Customs Brokers & Forwarders Association of America say tax money is needed to underpin the air cargo industry, because of "substantial revenue shortfalls" at airports. "Because of the lagging financials, airports will be allocating the monies of the Infrastructure Act to passengers, security, and safety, leaving insufficient funds to sustain air cargo operations," the groups said Oct. 18.
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Without state and federal dollars, the groups argue in a white paper, there could be disincentives for private sector investment, a shift to alternate modes of transport, inability to meet unusual challenges, such as during the COVID-19 pandemic, and a diversion of shipments from traditional cargo hubs. The last would cost jobs and result in "higher costs to all elements of the logistics chain from shipper to buyer," they say.
Kale Info Solutions Vice President Donna Mullins, who chairs NCBFAA's Air Freight Subcommittee, said it's vital that the $25 billion slated for airports under infrastructure funding be allocated to cargo and passenger development.