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In order to cover airfreight transportation under security regulations measures are increasing being undertaken. The Airfreight Security Act passed by the Transportation Security Administration (TSA) aims to check loopholes in air cargo security. This has been the result of increasing attention for countering any incidents similar to the tragic event of 9/11 airborne attacks on the World Trade Center.  Existing airfreight and known-shipper measures have largely been regulated under the US Airfreight Security Act. Security for airfreight is being initiated in a similar manner in several other countries including India.

The Airfreight Act has the purpose of maximizing security right from the point where a package is submitted for shipment to the delivery. Among recommendations are credentials for companies dealing in shipping packages, inspection of cargo planes and background review of shipping clerks and other employees handling airfreight. A further boost for airfreight came with President Bush signing legislation to review monetary details of payment to new cargo inspectors.

Globalization of the need for airfreight security is basically a fallout of the international nature of supply chains. The more unnecessary restrictions however risk damaging airfreight business. It is crucial to differentiate between security barriers and trade obstacles. The freight industry analyst estimates 40 percent of the world trade value or $2 trillion to be airfreight global accounts.

Escalating demand for electronic pre-notification of import and export freight is confronting airfreight carriers. For implementation in every new country, airline systems require modifications to facilitate message formats, protocols and reporting rules. Ideally airfreight security needs new computer systems and Radio Frequency Identification for data transmission to antenna tagging of all shipments.

In America passenger information has been made a priority. To counter the anticipated threat, the introduction of advance reporting is being done in a similar manner to passenger travel. Foreign airlines are required to transmit passenger manifests within 15 minutes after departure, failing which fines up to $6,000 per passenger may be imposed.

Prior to 9/11, only 5% of checked baggage was inspected in America with 33-armed guards called sky marshals for sensitive flights. With a view to ensure passenger security, inspection by the airfreight authority is done on all bags on international flights in America.

The resurgence of global airfreight business to the robust levels that existed prior to the troubled phase of DotCom bust in 2000 and subsequently in Sept 11, 2001, looks imminent.
 
For shippers capacity concerns with respect to international airfreight, can be as problematic as in all others means of transportation. Therefore there are several arenas into which global and domestic airfreight business is divided. Services like complex tracking of goods are handled by integrated express carriers. Freight forwarders use commercial carriers and integrated carriers alike to transport goods, as they don’t own their own planes. Their business is usually a niche one that may involve transport of a specific commodity, running a particular trade lane or operating within a specific country for specialized services.

The trucking industry has shifted focus from the single strategic specialization in freight movement. Trucking firms are increasingly getting into the generation and movement of timely accurate information. The information about exact locations of shipments are available to customers and trucking firms to improve efficiency of operations.

Industry experts are of the view that the decline in global airfreight that occurred around 2000-2001 underwent a reversal in 2004 with a growth rate of 13% that later fell to 3% in 2005. Industry experts are increasing expectations for a growth in the airfreight industry by over 7% resulting in doubling of airfreight volume within 2017.

The actual growth in airfreight however is in international transportation, in particular the Asian trade as domestic airfreight in the US has either remained steady or has registered 2% to 3% growth rate in recent years.

On the global stage too airfreight activity is on the rise emerging as the dominant mode. Freight activity in the Organization for Economic Co-operation and Development countries has generally grown at an annual rate of around 1% in France, the United Kingdom and the Netherlands and 4% in Italy, Japan and Spain. Freight activity increase in the US had an annual rate of about 2 percent.

Delivery by air may have had a simple beginning but it is today an extended supply chain business. Several trends have led to turning of fortunes for airlines carriers operating in Asia and Europe.