Global demand for air freight or cargo grew by 18.4% year on year in January 2024, and it is expected to continue growing throughout the year.
Without question, speed is king. For time-sensitive cargo, air freight is the best option for managing delivery. Even if it is regular cargo, there is increasing pressure for shippers to move freight as quickly as possible, as end consumers have no patience for lengthy delivery times. Many will go to great effort to avoid it entirely, and as a shipper, you have no choice but to cater to their demands.
However, speed does come with consequences.
If cargo moves too quickly, it could become costly if operations do not align end-to-end to receive the cargo. While speed is necessary to meet the customer’s goals and objectives, it must be accompanied by an optimized supply chain where operations are seamless. In that regard, the cornerstone of expedited freight rests on air freight operations.
Managing logistics in time-critical scenarios can be challenging. Shippers and their supply chain partners often have to contend with providing efficiency in the middle of urgency, limited planning and visibility due to a lack of effective communication, and resource constraints. But rest assured, COGISTICS Transportation has the air freight solutions to these challenges.
The Strategic Advantage of Expedited Air Freight
Undoubtedly, air freight is the fastest mode of transportation. It is also the most expensive. However, considering the prevailing crisis, delays, and soaring rate increases in the maritime market, air freight can actually be more cost-effective than dealing with the expensive disruptions caused by inventories getting stuck in transit. Here is why it holds a strategic advantage for logistics and supply chain operations:
Speed To Market
Although consumers want speed, guaranteeing it is also an effective way for shippers to gain a competitive advantage. By leveraging air freight, the order cycle time is faster, and the risks are greatly mitigated. This entails manufacturing and getting products to the market. Amazon’s one-day shipping promise was a game-changer in the logistics industry and ensured they gained a firm share of the market.
Rapid Recovery
Unfortunately, supply chain disruptions do happen. It could be failed processes, equipment breakdown, or any other external issue. However, the customer base is not waiting around and seldom appreciates delays. This means restarting the project and getting the necessary parts to continue repairs or bypassing the reason for the disruption, which is critical in ensuring that the orders are met in time. Air freight can play a vital role here.
Avoiding Costly Delays
When supply chain downtimes or disruptions happen, delays can be costly. With the current crisis across the seas, many stakeholders have been forced to use longer routes, which cost more money and time. By leveraging air freight, businesses can mitigate the cost of these delays while ensuring their losses — financially, operationally, and in the overall customer experience — are properly mitigated.
Inventory Management
Holding inventory gives businesses and supply chains enough safety stock to mitigate and meet unplanned demands. However, holding inventory can be costly, prompting an embrace of lean inventory. Running a lean reserve means adapting inventory management strategies and accurate forecasting to always stay on top of demand fluctuations. This can be done efficiently by leveraging air freight.
Although expedited air freight can be costly in many cases, it is clear that in a volatile and unpredictable market, air freight costs pale in comparison to the cost of poor customer experience and disruptive downtimes in the supply chain.
Navigating The Complexities of Expedited Air Freight
Because of the nature of expedited air freight, certain complexities must be properly navigated to avoid crises and extra costs that could impact the profitability of the entire freight and shipping process.
Customs Clearance
Global shipping and international trade are documentation intensive, and an error could halt the entire process and cause delays. It could be document omission, errors, or sometimes entirely wrong documentation. Streamlining the entire documentation process can mitigate or eliminate all these errors. More importantly, it ensures faster customs approval.
Routing and Schedule
Although speed is the key benefit of air freight operations, it is important to route and schedule it properly. The consequences of wrong routing and scheduling issues can be detrimental and turn an advantage into one significant disadvantage. Efficient planning and intermodal connections will help facilitate the air freight operation and ensure on-time delivery.
Risk Mitigation
Risk mitigation helps optimize the air freight operation and allows for a hitch-free process. However, it is only achievable through proactively handling delays, surcharges, and compliance issues.
Mastering and navigating these complexities are critical for getting the most out of any air freight operation. This will be especially critical in avoiding costly disruptions that cost the supply chain or business more than what air cargo logistics is worth to them.
Integrating Air Freight Into A Comprehensive Shipping Strategy
Air freight accounts for a modest 0.5% volume share of transported goods globally but contributes 35% of freight traffic value. Despite this, it can be harmonized with other modes of transportation, including via roads and ocean freight operations, to create a resilient logistics network. The following strategies will help.
Optimize Routing
With optimized routing, businesses can accurately forecast demands to pinpoint demand surges and seasonal trends. This allows for effective tracking and alignment of each mode of transportation to fit with the schedule of the others. This will ensure the logistics process runs continuously.
Streamline Documentation
Effective and streamlined documentation is essential for a comprehensive shipping strategy. This allows for a more unified approach to the multimodal shipping operation and helps prevent delays during the transloading and shipping process.
Integrating air freight in the shipping strategy enhances long-term strategic planning because it allows the supply chain to leverage the strengths of each mode of transport to complement the air freight. This makes for a more agile logistics process, reducing or eliminating vulnerabilities.
How COGISTICS Transportation Streamlines Air Freight For Time-Sensitive Shipments
Navigating the world of international air freight is no small feat. That’s where we come in. At COGISTICS Transportation, we simplify global shipping, turning the complexities of international air freight into streamlined, hassle-free experiences for businesses like yours. Here is what we offer:
Comprehensive Air Cargo Services
We customize air freight options to suit your needs, from urgent deliveries to regular international shipments. This process starts with understanding the specifics of your cargo, from size and type to urgency and destination, and tailoring a solution that fits precisely.
Our services include options for full charter, part-charter, consolidation, and even temperature-controlled logistics, ensuring we have a tailor-made solution based on your requirements.
Robust Network
We have a robust global network to identify the most efficient air routes, aligning with your international shipping demands. We also have a team of experts working with the latest technology and route analytics to ensure that every shipment takes the most time and cost-effective path.
Beyond those, our robust network and expertise give you access to warehousing solutions, streamlined customs clearance, and routing support.
Advanced Technology
We leverage technology solutions such as real-time tracking, data insights, and monitoring to keep shippers and their supply chain partners informed every step of the way. Our technology solutions give you 100% transparency, allowing you to plan and enhance the logistics process effectively.
24/7 Expertise
Our team of shipping and logistics experts is available 24/7, allowing for seamless inquiries and resolutions. This way, your logistics operations run continuously and promptly without a hitch.
COGISTICS Transportation is the Right Choice for Air Freight Shipping
COGISTICS Transportation stands out with our customer-centric approach, deep industry knowledge, and commitment to innovative, eco-friendly solutions. We transform logistics challenges from air, land, and sea into strategic advantages. Contact us today to learn more.
