The U.S. Department of Transportation (DOT) is not properly assessing the current data it collects on air cargo and must better communicate the data’s current limitations to stakeholders, according to a federal watchdog.
Due to these shortcomings, air cargo stakeholders may not use the data appropriately for purposes such as infrastructure planning and incident response.
In an 87-page report released on Wednesday, the U.S. Government Accountability Office (GAO) said air cargo stakeholders shared common challenges, namely when it came to ground-based air cargo infrastructure and operations.
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According to the report, more than two-thirds of the stakeholders GAO interviewed reported challenges with warehouses, truck areas and roadways at selected airports, which can be a major supply chain detriment since air cargo spends 80 to 90 percent of its time on the ground.
“Stakeholders most frequently reported challenges associated with older warehouses, which slowed operations,” the report said. “GAO visited warehouses that were at least 40 years old at four of the nine airports GAO visited, and observed narrow or obstructed space, blocked doors and low ceilings. Many stakeholders also reported that a lack of truck areas and poorly configured roadways slowed operations and led to safety hazards.”
During the study period, GAO interviewed 37 air cargo stakeholders, like carriers and ground handlers, across 11 airports that handled 38 percent of 2023 cargo volume. The interviews discussed air cargo trends and challenges, and the stakeholders’ interaction with federal agencies, including DOT.
The office also interviewed members of the DOT and the Department of Homeland Security (DHS) to better understand their roles and responsibilities for air cargo.
To evaluate the DOT’s work, GAO reviewed the Bureau of Transportation Statistics’ (BTS) Freight Analysis Framework (FAF) and National Transportation Atlas Database (NTAD) air-to-truck facilities dataset.
FAF includes estimates on the volume and value of commodity movements to or from U.S. origins or U.S. destinations by mode, including air. NTAD includes data on the number, size, location and tenants of U.S. air cargo warehouses.
“We found that the FAF air cargo data were of unknown reliability for our purposes of describing changes in domestic air cargo values and commodities,” said the report. “Additionally, we found that the NTAD air cargo data were unreliable for the purposes of describing changes in U.S. air cargo infrastructure.”
The report recommended Secretary of Transportation Sean Duffy to ensure that the BTS director fully assesses the reliability of—and communicates the limitations of—air cargo data in both the FAF and NTAD.
Additionally, GAO suggested the DOT evaluate existing information and routinely communicate with stakeholders to identify challenges to efficient air cargo movement and determine whether the agency needs to take steps to help address the challenges.
The DOT agreed with GAO’s recommendations.
The Airforwarders Association (AFA) supported the report’s findings, saying they validated repeated concerns the group had raised about the impacts of inadequate investment and maintenance in the industry.
Brandon Fried, executive director of the AFA, said the report’s release is a “significant” moment for air cargo and logistics.
“For years, we have highlighted the critical need for investment in our ground-based air cargo infrastructure,” Fried said in a statement. “This report provides the irrefutable, government-backed evidence we need to drive real change and secure essential federal funding.”
According to the trade association, current infrastructure deficiencies directly contribute to increased freight forwarder costs, impede the timely flow of goods, and can diminish the competitiveness of U.S. businesses in the global marketplace.
“Our goal is clear: to reduce airport truck lines, modernize facilities, and ultimately lower operational costs for our members, ensuring a more efficient and resilient supply chain for all U.S. commerce,” Freid said.
The GAO published another report in June focused on the DOT’s Maritime Administration’s efforts to revitalize American shipbuilding. That report said the office has not established the goals required to properly assess the performance of four financial aid programs designed to encourage shipbuilding.
Those programs exist because of the higher costs to build commercial and military ships in the U.S. compared to global leaders in the space like China, South Korea and Japan.
As for the DOT, the department recently accused Mexico of violating its bilateral aviation agreement with the U.S. The criticisms stem from the country’s shifting of cargo-only flights to Felipe Angeles International Airport (NLU) when it opened in 2022 as congestion hampered Mexico City’s primary airport, Benito Juarez International Airport (MEX). Mexico had also restricted flights out of MEX during the transition.
Potential sanctions are on the table. The DOT already has proposed to withdraw antitrust immunity from Delta Airlines’ joint venture with Aeromexico, and the branch could disapprove new flight requests from Mexico.
