Air Freight refers to the commercial transportation of goods by air
The governing body that regulates air transport is the International Air Transport Association (IATA)
Air transport has its own set of regulations, costs and logistics involved, differentiating from other means of transport.
The Air cargo industry had a market size of US $182.09 Billion in 2023 and is expected to reach US $ 268.79 Billion by 2032
Key drivers of growth are the E-commerce development and its expansion both domestically and internationally while its restraint involves the high-fuel costs.
All in all, the air cargo market is expected to have a 4.4% Compounded Annual Growth Rate (CAGR).
The following goods often rely on air freight for fast and on-time delivery times
- E-Commerce: High-value goods such as electronics, luxury and high demand fashion items.
- Manufacturing: Time-sensitive components and critical to production goods.
- Ship Spares and Supplies: Urgent spares crucial for the operation of ships as well as crew supplies
- Aerospace and Defence: Supply of aircraft spare parts, military equipment for armed forces
- Perishables: Including fresh produce, seafood, dairy as well as plants, flowers and chemicals that need fast delivery to market in order to avoid spoilage.
- Pharmaceuticals: Temperature sensitive cargo
- Humanitarian Aid: Relief supplies to disaster zones that need immediate response to unpredictable emergencies.
Air freight shipping is a complex process that involves a number of steps.
- Planning Phase: Starts with obtaining required information from client and understanding the needs of the shipment. It then includes checking routes and different carriers for space availability and negotiating rates, before finalizing a booking.
- Collection and Consolidation: Your orders are picked up and sent to a central processing location where we start prepping them for transport. Often combined with other orders for efficiency and cost saving.
- Packing: Goods are packed safely and carefully in order to cater to the requirements of the shipment and adhere to the restrictions that may be imposed by IATA or the airline.
- Transport Documentation: At this stage, the goods should be packed and invoices / packing lists should be ready in-hand. The Airway Bill along with the shipping labels are ready to be issued.
- Inland Transportation: It is time for the shipment to travel to the aiport for final checks by ground handling and export clearance.
- Customs Clearance: Once cargo arrives at the airport, customs clearance can begin. During the clearance, crucial final inspections are made to safeguard export and import requirements.
- Ground Handling: After clearance is complete the last step is to pass airport security checks, X-ray and deliver cargo to ground crew along with the export documentation.
- Air Transport: Finally your cargo is loaded onboard the aircraft and is now on route to the destination.
- Arrival and Delivery: Upon landing at the destination airport, goods are unloaded, destination handling charges are paid, import customs is done and any duties are paid and finally goods are loaded onto vehicles to transfer them from the airport to their final destination.
The greatest advantage of shipping by air is the speed, efficiency and scheduling. However, there are more benefits:
- Low Transit Times: Compared to other means of transport, Air transport can deliver further and faster. This is crucial for time-sensitive shipments and cargo, especially perishables
- Reduced Risk: Air travel bears less risk to cargo as it is often smoother with reduced time of goods being in transport.
- Improved Inventory Management: Being able to restock and resupply inventories faster means businesses can reduce warehousing and storage costs by counting on on-time deliveries
- More Secure: As airports have higher standards for security, it means cargo is more protected against tampering, theft and damage. Air freight also offers better tracking capabilities allowing for higher control and safety.
- Global Reach: Air travel has shortened the distance between many destinations around the world and using Air Freight to ship goods allows companies to access more markets internationally.
Air Freight does have some disadvantages that need to be kept into consideration
- Fuel Costs:Shipping by air is typically the most expensive means of transport mainly due to cost of fuel, but also due to the higher airport fees and specialized handling of cargo at the terminals
- Space Availability: Commercial passenger aircraft (PAX) can carry around 10 tonnes of cargo. Cargo aircraft can stretch freight capacity much higher but they are not always available for most destination. This means air freight is not suitable for bulky or heavy shipments.
- Carbon Footprint: Due to the large amount of fuel needed for air travel, shipping cargo by air has a significant larger carbon footprint and impact on the enviroment which does raise concerns about sustanability.
In conclusion, air freight offers faster delivery timelines and lower risk but it comes at a much higher price. When making a decision for your shippment consider the following:
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Urgency
- Time-critical Delivery: Does speed matter? Do your products need to reach their destination within days instead of weeks/months? Then air freight is the recommended option
- Deadlines: Air freight is ideal for meeting tight deadlines or catching up when orders are delayed
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High Cargo Value
- Luxury Items and Rarities: Air transport offers increased security, better tracking and less time spent travelling which makes it ideal for shipping Luxury items such as artwork, jewerly, electronics and other High value goods.
- Critical Parts: Likewise, when needing to ship parts for repairs or projects with value that far outweigh the transport cost, air freight not only becomes faster but also more efficient and cost-effective.
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Special Cargo
- Perishables: Often, air freight is the only option for goods with low shelf-life or goods that need to reach market fast due to spoilage.
- Fragile: Shorter times in transit and increased security and safety measures, means that delicate and fragile items are less likely to get damaged.
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Remote Locations
- No Land or Sea Access: When there is no efficient land or sea route, you can be almost certain there will be an airport nearby that can service your destination.
- Limited Options: The more remote the location, the more limited the options of shipping via land or sea. Sometimes air transport can be your only realistic option.
Ocean Freight
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Road Freight
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Multi-Modal
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