The Air Freight Forwarding industry has changed over the past decade to become increasingly digital and customer-focused. Leading companies have been incorporating online booking features to appeal to smaller customers. They are also expanding their service offerings beyond airport-to-airport bookings to include cross-border e-commerce. To stay competitive, these forwarders are working to build partnerships with other businesses in the value chain. The industry must adapt and keep pace with these changes to stay relevant.
Breakpoints in air freight forwarding
Air freight forwarders face price pressures as a result of modernizing their freighter fleets. As a result, revenues may remain flat even though transport volumes are increasing. However, digitalization is helping companies automate processes and raise utilization. In time, this will transform air freight forwarding fundamentally. Read on for a look at breakpoints in air freight forwarding. This article will discuss some of the major breakpoints in air freight forwarding and how they will affect the business.
The first breakpoint is weight. Originally, air freight rates were very high, so shipments were typically small. However, incentives were introduced in the USA to make shipments larger and cheaper. The first weight breakpoint was 100 lbs. Then, equivalent weight breakpoints were introduced around the world. Eventually, these breakpoints were based on kilogrammes. Increasing the weight of your shipment will lower your air freight rates.
While air freight is a great way to ship a wide range of goods, the cost is not cheap. It is typically four to five times more expensive than road or ocean freight. The costs are based on the weight and rate per kilogram. In addition to the freight cost, air forwarders charge import duty and taxes on top of the cost of the goods. Some importers and exporters consider the extra costs as a necessary step to expedite the delivery of high-value products.
When choosing air forwarding, make sure to compare the prices offered by different carriers. While air freight is typically more expensive than ocean freight, it is possible to get discounted rates by shipping by ground. If you ship frequently, you can get lower rates by using regular routes and cutting miles. You should also keep in mind that not all carriers offer the same discounts. You will want to find a reliable freight forwarder who will give you the best service for the price.
When selecting a transportation provider, reliability is critical. You need a company that will be able to provide consistent service and great customer support. Additionally, a reliable transportation provider must be flexible and communicative. In other words, they must be able to adjust to changes in your needs and preferences. If a provider is unable to adapt to these changes, you are not getting the best service from them.
While air freight is a younger business, it tends to be more reliable than ocean freight. Weather can affect flight schedules, but airlines are often on top of their schedules. Ocean carriers, on the other hand, are notorious for being off schedule. While an extra day or two doesn’t affect many people, it can add up quickly and lead to costly delays. In order to keep your air freight business running as smoothly as possible, you should look for a provider with a history of reliability.
Collaboration with adjacent value-chain partners
Automation and collaboration with adjacent value-chain partners will be the future of air freight forwarding by 2030. 3-D printing will not significantly impact air cargo, and forwarders will need to adapt and innovate to meet the needs of customers. Air cargo will still need human touchpoints, but the industry will be more efficient and cost-effective with new technology. The future of air freight will be shaped by the comprehensive digital forwarder, which will act as a catalyst for new technologies.
The collaborative process between parent organisations and adjacent value-chain partners is based on common definitions of success. Depending on the type of partnership, collaboration may involve a flat assessorial for each truck, a specified load size, or an open-ended agreement on product acceptance. Once a collaboration program has been developed, companies can implement and manage it. Collaboration will also be easier when there are shared definitions of success and mutual benefits.
With the advent of the internet, the air freight industry is expected to undergo a massive transformation. Digitization will bring about a convergence between shippers, carriers, and air freight forwarders. It will also enable real-time matching of demand and capacity. This will improve service quality and lower costs. Digital platforms will also drive efficiency and expand revenues. By leveraging new technology, air freight forwarders can offer better services at lower prices, which will benefit all stakeholders.
Despite the promise of digitization, traditional air-freight forwarders face some challenges. These companies must evolve their business models to meet the growing demands of the digital economy. The new breed of forwarders can be segmented by service offerings and provide solutions for specific elements of the value chain. Many digital forwarders are offering the same range of transport services as traditional air-freight carriers, but with a more seamless customer experience. In addition, carriers are building digital channels to serve their customers.