You might think that air freight business is dwindling. After all, the cost of fuel is outrageous these days, there are more regulations in the air than there are on the ground, and the problem of labor costs are a delicate balancing act. But, the industry is actually booming. Here’s how it is overcoming all odds.
The Consumer Demand Won’t Stop
The consumer demand isn’t slowing up. When businesses, and even retail consumers, need to get packages, they often choose the fastest delivery. This means air freight. Part of the growth in the industry is attributable to the fact that consumers shop online more and more, and they expect delivery to be quick and efficient.
And, if a manufacturer has a warehouse on the opposite side of the country, or if they operate only a few warehouses or use a fulfillment company that’s across the globe, air freight is often the best way to move product from “A” to “B” in a reasonable amount of time.
Sometimes, certain products, specifically custom-made products and designer fashions and accessories, as well as high-end electronics and related parts, will make up a decent amount of the cargo on-board. These tend to be very time-sensitive products, however, and are better suited to air freight delivery as opposed to ground shipping.
And, another matter is security. High-end products also attract thieves. When shipment is handled via ground transport, the risk tends to be higher, especially at the last mile. To reduce that risk, air freight is used. Air cargo lanes tend to be more secure than other forms of transportation and then there’s the obvious benefit that practically no thief could access cargo once in flight.
All of this growth also benefits suppliers for air freight companies, especially when it comes to parts suppliers like an Airport Bearing Supplier. So, not only is the air cargo industry growing, it’s causing other industries to grow right along with it.
Emergency Shipments Are Still Important
Emergency shipments will always be handled by the fastest shipping method available. And, right now, that’s air freight. When you can schedule an overnight shipment, or even a same-day shipment, and be relatively assured that your shipment will arrive as promised, you will choose that option.
With air freight, a plane can take off, and land, in the same day – often within a few hours, of the order being placed. There’s simply no other method that’s that fast.
Scheduled Services Are More Reliable
Some industries, like the automotive industry, have come to rely on air freight for shipment, and they’re not changing suppliers. It’s a myth that air freight is a “backup” service. Many industries actually use it as their preferred shipping method.
Almost all air freight cargo (for many companies) is schedules air cargo, meaning that the shipment is planned out in advance, the company has ongoing shipping contracts, and it’s a normal and regular mode of shipping for the customer.
Scheduled air freight in some industries, like the automotive industry, is used to reduce costs. Other methods, like ground shipments, are used as backup for peak output or unexpected or emergency shipments.
Direct-To-Consumer
Air freight is also allowing a unique trend to develop. In the past, a central hub for product storage and sales would be established, and from there the product would be distributed to consumers.
For example, in the automotive industry, manufacturers use automobile dealers to centralize the sales of automobiles.
Dealers take shipment from the manufacturer, then turn around and sell the vehicle to the consumer. The consumer must go to the dealer to take receipt of the automobile. Normally, this relationship is beneficial because the dealer can provide ancillary services, like maintenance and “dealer only” packages like vehicle upgrades.
However, more and more car manufacturers are offering direct-to-consumer options where the vehicle can be custom-made online and shipped to the dealer for pickup or delivery. In the future, these deliveries may be made directly to the consumer’s home or business.
This cuts out the middleman, as it were, and makes the process go much faster. It also helps the consumer save time and money, since the shipment details can be handled online. There’s no haggling with the dealer, and manufacturer’s MSRP is often lower than the dealer’s, all other things being equal.
Conclusion
Most people believe that air freight is a high-priced way to ship luxury goods, but from the industry and consumer perspective, it’s actually a cost-effective way to ship – especially when time is of the essence.
