What is new in the air cargo and air freight industries? Global Trade has the answers – check out the industry news and trade articles.
Air Cargo accounts for a relatively small percentage of world trade when calculated by overall volume (approximately 10%). However, when the type or value of products being transported is taken into account (technology, business services, pharmaceuticals), its importance significantly increases. If something needs to be where it’s going quickly, especially when the destination is international, air cargo plays an essential role in that supply chain. High-speed delivery has become essential to our economy, as more companies opt to receive goods and bring them directly to market, thus avoiding costs associated with inventory, warehousing and logistics. Air cargo reduces the 30-day shipping time of ocean transport to less than 48 hours. When fruits, vegetables and flowers need to be sent from remote agricultural reasons to major cities around the world, companies rely on air cargo to deliver these products on time. That capability has also been a boon to economic development in the places where these perishable goods are produced.
Data Can Be Misleading Without a Closer Look
The logistical chaos caused by Hanjin’s bankruptcy helped boost airfreight rates, but there is limited statistical evidence of cargo switching modes. A recent analysis from Drewry looked at the impact of Hanjin’s demise on the airfreight market, which according to some sources benefited as some nervous shippers were said to have shifted cargoes to the… Read More
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