News / Cargo sector concern after shock admin change at the TSA

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As the world trawls through the near-100 executive orders announced by new US president Donald Trump, the cargo business, particularly in air, could be first impacted by changes at the Transportation Security Administration (TSA). 

Despite serving as TSA administrator during Mr Trump’s first term and due to remain in post until 2027, David Pekoske was “advised” by the new president’s team that yesterday would be his last at the TSA.  

This has caused some concern – and surprise – in freight circles.  

Brandon Fried, head of the US Airforwarders Association, said that the resignation “raises several critical considerations for the air cargo industry”.

He said: “Under Mr Pekoske’s leadership, the Airforwarders Association maintained a strong working relationship with the TSA, which was instrumental during periods of heightened security concerns within the US supply chain. Notably, earlier this year, there were suspected hostile state actions targeting the aviation cargo sector, underscoring the necessity for immediate and decisive political direction to safeguard our industry.

“The Airforwarders Association urges the new administration to promptly appoint a successor to Mr Pekoske to lead the air cargo division of the Transportation Security Administration. Given the aviation industry’s ongoing security threats, the agency and its air cargo department must receive immediate political direction to continue their critical work.

“A leadership transition at the TSA can introduce a period of adjustment. However, the foundational security protocols and measures in place are robust and designed to withstand administrative changes. The Airforwarders Association will continue to collaborate closely with the TSA to ensure that air cargo security remains uncompromised during this transition period.”

Mr Fried told The Loadstar in November, following the US election, that the head of the Customs & Border Protection (CBP) would normally be a political appointment, “but the reality is that you don’t tend to get that with the TSA – the stakes are too high”. 

He explained: “One of the worst things that can happen with the TSA is that it shuts the door and they say ‘we have an idea’, because a lot of times they don’t understand our business. They don’t understand how logistics works. And they don’t realise that they’re going to shut down everything. When the Baltics attack occurred, their first response was to ‘hold cargo’. 

“But where are we going to hold it? And what do we do with it? Why don’t we work on focusing on screening and detection, and letting it go?” 

There is no clarity yet on who will come next, but Mr Fried said last year: “I find, Democrat or Republican, the people who lead the TSA are very impressive. They usually come from high-ranking military or Coast Guard backgrounds.” 

The AfA, which works closely with the TSA and CBP to ensure that any new rules are workable for trade, had a good relationship with Mr Pekoske. So there is some concern over the potential for significant changes at the TSA – which can have a huge impact on logistics. 

Mr Trump’s pick for the CBP is Rodney Scott, his Border Patrol chief from 2020. But the future for the CBP is uncertain, as the president announced yesterday that he would launch an External Revenue Service (ERS) to gather tariffs and other revenues – a job traditionally done by CBP. 

Mr Fried said today: “President Trump’s proposed establishment of the ERS aims to centralise the collection of tariffs, duties, and other trade-related revenues. Currently, the US CBP is responsible for these functions. The creation of a new agency could lead to a realignment of responsibilities. However, without specific details on the structure and mandate of the ERS, it is challenging to predict its exact impact on CBP operations.”

And despite the CBP issuing new proposals for de minimis shipments last week, these too could change. 

One of Mr Trump’s presidential actions yesterday, in the America First Trade Policy document, included a promise to “assess the loss of tariff revenues and the risks from importing counterfeit products and contraband drugs, eg, fentanyl, that each result from the current implementation of the $800 or less, duty-free de minimis exemption … and shall recommend modifications as warranted to protect both the revenue of the United States and the public health by preventing unlawful importations”. 

Other subjects which could impact logistics, mentioned in the inaugural address, include a vow to “take back” the Panama Canal, “extend US territories”, and remove electric vehicle mandates. 

And, of course, there are tariffs, which Mr Trump has said could be introduced on 1 February on imports from countries including Mexico, Canada and China. 

Scan Global Logistics said today that “potential trade wars remain a constant risk, partly driven by the new administration in the US. The risk of trade wars follows the potential effect of changes in sourcing and production patterns”. 

It continued: “Trade and tariff wars can potentially impact trading patterns, especially for North American tradelanes. On the other hand, the new US administration is considered ‘business-friendly’, which can further fuel airfreight growth.” 

But it added: “The current troubled geopolitical environment will not necessarily lead to increased rate levels, considering that ocean and airfreight levels remain elevated from a historical perspective.” 

However, it qualified this claim, stating that diplomatic tension over the Panama Canal could “lead to disruptions in one of the main routes within ocean freight and potentially raise additional charges, either due to re-routings or delays”. 

Click here for Loadstar Premium‘s take on Trump’s first day.