International Air Freight
International Air Freight
Trade disruption caused by tariff wars — such as the dispute between the US and China — or the UK’s exit from the European Union, extreme weather, and unpredictable consumer demand are all factors that have increased the need for emergency shipments that can only be sent via air, rather than by slow-moving maritime containers. Another factor is the surge in sales of time-sensitive e-commerce parcels that must be delivered by air to meet the needs of ever more demanding customers.
Driven by greater uncertainty and the growing popular of electronic commerce, global air cargo shipments increased by 9.7 in 2017. And yet air cargo tonnage growth slipped to less than half that pace [3.5 percent] in 2018, measured in freight tonnage [not value], according to the International Air Transport Association. In North America, growth has slowed to a similar level [3.2 percent last year.]
Although e-commerce shipments are robust, they also generate challenges for the air cargo sector: Products ordered online take up more space when shipped in their individual packaging than other products that are more often packed onto pallets. Other uncertainties are sudden flare-ups in congestion, rising fuel prices and higher trucking rates. Moreover, only 30 to 40 percent of air freight is planned and shipped by choice, say air cargo executives. The rest is shipped by accident, when the market changes suddenly, machines have broken down, or other emergencies force shippers to bear the extra cost.
Commentary
Survive the holiday air capacity crunch with lead time planning