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Airfreight vs. Sea Freight – Which Works Better

airfreight

Airfreight vs. Sea Freight – Which Works Better

Airfreight vs. sea freight has become a burning dilemma for all those in need of this type of services. While both solutions come with a set of advantages and disadvantages, the final choice one makes will depend on a variety of factors. We are willing to share our knowledge and findings with you so that you can make the best possible decision regarding your shipment in the given circumstances. 

Airfreight vs sea freight – the costs can be a decisive factor

Undeniably, the amount of financial means necessary to afford airfreight services is considerably higher than that of sea freight. Moreover, the appearance of the largest cargo aircraft in the world announces great changes and improvements in this field. The Antonov An-225 could cause a further rise of the airfreight costs, but it will also guarantee higher quality. On the other hand, sea freight is much more affordable and, consequently, the number one choice of a vast majority of clients. Opting for sea freight provides clients with acceptable service but at a significantly lower price.

Time matters greatly!

Most often, clients want their shipment delivered as soon as possible, which can cause problems for those offering sea freight services. Not seldom do customs issues or hold-ups at ports cause serious delays. However, we must admit that a giant step forward is evident in this field. Firstly, high-quality, modern ships are much faster now than it was the case in the past. Secondly, there are some canal upgrades that can eliminate tedious and tiring delays on some routes. Finally, sea freight forwarders can guarantee delivery times, which is vital for business owners when it comes to organization.

The type of cargo affects the final choice on airfreight vs. sea freight dilemma

The type of cargo is one of the most important factors influencing the choice in the airfreight vs. sea fright dilemma. In this case, we must admit that sea fright seems like a much better solution since it has no limitations you have to be aware of. One of the crucial pros of the maritime shipping is that you can ship even the bulkiest and extremely heavy goods. Conversely, airfreight is limited in this discipline. Before you opt for this type of goods transportation, it is advisable to make sure that the type of your cargo is acceptable. In addition, there is a very long list of the items which are prohibited and those listed as hazardous materials. Depending on your final destination, the rules and laws may differ. Yet, getting sufficient information on the subject must still be the first step in the process.

Safety of your cargo is the top priority

Understandably, the safety of cargo is always the top priority. It is important to emphasize that air cargo has to be dealt with the utmost attention and in accordance with the regulations which are very strict and clear. All the crucial elements, including handling and securing your cargo as well as the proper storage, are defined by airport regulations. This is a great benefit and a guarantee that the safety of your goods will be at the maximal level. On the other hand, we cannot say that sea freight is a bad alternative either. In this case, the goods are transported in containers, but the human factor is crucial. Proper packing strategies are essential in order to decrease any chances of potential damage during transport. If this is not conducted appropriately, the chances are some of your goods might get seriously damaged or even cause further problems on the ship.

Do not forget about the accessibility of your goods

If we analyze the accessibility of your goods as one of the criteria, airfreight is a more favorable option by all means. The procedures are clear, cargo is in smaller volumes and there are no unnecessary waitings to receive your goods. Using sea freight for your cargo often results in additional costs due to heavy congestions in seaports. If your goods are not delivered at the arranged time, you are required to pay for detention and demurrage costs, which may be a heavy burden on your budget. However, we must not forget to mention an advantage sea freight offers comparing to airfreight. The accessibility to markets is much higher in case of sea freight. The reason is very simple. When unloaded from ships, containers can move further inland by using the services of intermodal shippers

Eco-friendly practices 

Finally, let us not forget about the environment when choosing between airfreight vs sea freight. Applying eco-friendly practices is becoming increasingly important, so it does not surprise this is one of the factors shippers base their decision on. According to this particular criterion, sea freight is a more reasonable option since it has a significantly better carbon footprint. Quite the opposite, airplanes are serious polluters and require special attention and measures to reduce their carbon footprint to minimal values.

Final words on airfreight vs sea freight dilemma

The decisions and choices you make concerning airfreight vs sea freight dilemma will depend on miscellaneous factors. It is of key importance to weigh the pros and cons of each of these options and then make your decision final.  A serious effort is required to negotiate the best shipping terms and only then can you expect to ship your goods completely fuss-free.

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Susan Daniels is a passionate copywriter who loves exploring home improvement ideas and real estate market. Lately, she has gained considerable knowledge in the types of moving services and the qualities of respectable moving companies such as DA Moving NYC, for example. She enjoys giving advice on the best places to live and exciting places to visit. Traveling makes her happy as well as reading good books.

Kuehne + Nagel

Kuehne + Nagel Finalize Worldwide Perishable Canada Co. Acquisition

Adding to its current presence throughout Canada, Kuehne + Nagel announced the completed acquisition of Worldwide Perishable Canada Co. (WWP) – known as a leader in tuna exports in addition to being one of the largest freight forwarders in Canada. This acquisition represents forward movement for the company to expand its position as a key provider in perishable cargo.

“We are looking forward to joining the Kuehne + Nagel Group. Combining the strengths of both companies, we will add outstanding value in the regional and international perishables business. For both, our customers and our employees this will generate growing perspectives and services,” said Doug McRae, Chief Operating Officer Worldwide Perishables Canada Co.

WWP was originally launched as a designated forwarder with a focus on local demand. The Halifax-based company brings more than seafood logistics expertise to the table, however. Information released by K+N confirmed more than 17,000 tons of perishable air exports per annum out of Canada will be represented through combining company volumes.

“Perishables logistics is one of our strongest growth drivers at Kuehne + Nagel, thus, we have been continuously investing in the expansion of our dedicated network: through selected acquisitions and by connecting key production countries to major markets,” says Greg Martin, Regional Airfreight Manager Kuehne + Nagel North America. “Setting up global certified standards which are reflected in our KN FreshChain solution, has further strengthened our perishables network worldwide, making it the largest in the industry.”

“Acquiring a specialized player in seafood logistics, Kuehne + Nagel consolidates its leading position in the market,” said Jamie Wood, National Manager Kuehne + Nagel Canada. “Using the network and experience of both companies, our customers can benefit from an enhanced offering and the best possible solution to their needs.”

GEODIS

GEODIS Launches Airside Gateway at Schiphol

In response to substantial growth volumes recently experienced by global logistics specialist GEODIS Netherlands, the company announced the launch of its Airside Gateway – an innovative airfreight handling system located at Amsterdam’s Schiphol Airport hub, right next to the runway.

The Gateway offers 2500 m2 of warehouse and office space and serves as another step towards the company’s goal of streamlining efficiencies using innovation for the customer’s benefit.

“We estimate that Gateway will bring a significant decrease in airfreight handling times, ensuring quicker delivery of cargo and a better service to our customers,” Ellis de Jong, Operations Director Freight Forwarding said in the announcement. “Export wise, with Gateway we gain more efficiencies on the consolidation side.”

This effort not only supports meeting the increase in demand, but paves a way for a jump start in efficient delivery of goods while enhancing security measures. The announcement confirms the company is following the growth strategy set in place involving innovation and the Amsterdam Gateway.

“The opening of the Amsterdam Gateway is the next important step in both our regional planning and in our global growth ambitions. It will substantially increase our competitiveness and reinforce the crucial hubbing function of our airfreight operation in the region,” concluded Thomas Kraus, President & CEO North, East and Central Europe.

Uncertainty in Today’s Air Market: What it Means for You

Reoccurring annual events, like the holiday season, typically bring predictability to air shipping. But lately, out of the ordinary events have disrupted the seasonality we typically expect. The best way to deal with the ever-changing peaks and valleys in air capacity throughout the year is to know both the historical patterns and potential air market disruptors.

The cyclical nature of air freight

Air freight service predictably follows the law of supply and demand. When shipping volumes spike, space on airlines becomes harder to secure and prices go up. And the opposite is true, too. If shipping volumes diminish, space on airlines becomes readily available and the prices go down.

As you might expect, the holiday peak season is one of the busiest shipping periods of the year around the world—including for air. But there are other seasonal surges to be aware of as well. The graphic below visually represents the seasonality of the air market in years’ past.

New disruptors to the air freight market

We’re just over halfway through 2019, and already it’s quite a different market than we’ve seen in the past. Several disruptors are causing a great deal of uncertainty.

Tariffs on Chinese goods

The ongoing trade war is one of the biggest disruptors to air shipping this year. Earlier tariff changes did not make a huge impact on air shipping. But demand for air freight shifted significantly when enough shippers preemptively repositioned inventory prior to the June 1, 2019, deadline. On May 31, 2019, the United States Trade Representative (USTR) announced the deadline would be extended to June 15, 2019.

Ecommerce and high-tech goods

With the growth of ecommerce and high-tech products flooding our markets, air freight is quickly becoming the go-to mode of transportation for many shippers—any time of year. Combined with the promise of two-day shipping, it’s often the only way to meet customer demands.

Adjust your air freight strategy based on the market

With air freight volumes lower than we’ve seen since the 2008 recession, now may be the ideal time to update your air freight shipping strategy.

Choosing air freight can be a strategic way to lower inventory levels in the United States. Finding a balance between inventory costs without sacrificing customer delivery expectations often requires expertise. The air experts at C.H. Robinson are available in offices around the globe to help manage your air freight and ensure any problems are resolved in real-time.

You may even consider that if air freight rates dip low enough, you could make up the difference (at least in part) of the added tariffs on Chinese goods.

The air freight market is a complex ecosystem that will likely remain uncertain for some time. While this uncertainty lasts, you may want to switch to a quarterly planning strategy to avoid a long-term commitment when you don’t know what’s coming.

What’s going to happen?

While inventories in the United States remain high, it’s likely that air shipping volumes will remain low. The best way to insulate your company and your relationships from today’s air market is to stay flexible. Adapt quickly to ensure you can take advantage of soft markets while still buying appropriately during peak seasons.

American Airlines Cargo Celebrates Record Volume and Revenue

American Airlines Cargo released an announcement confirming record-breaking numbers for 2018 across multiple initiatives including performance, revenue, and Flown As Booked (FAB) numbers. Records were made for six out of the last seven months in 2018.

The airline attributes the more than $1 billion in revenue to successfully implemented routes and strategic capacity planning. Additionally, the airline confirmed volumes for freight and mail were at record levels for 2018, with an impressive 2 billion pounds.

“Our Operations team set all-time performance records, while moving record volumes of freight and mail across our system this year, reaching our typical peak fall volumes month after month,” said David Vance, VP, Operations, American Airlines Cargo. “It’s impressive to say the least and makes me very proud to lead Cargo Operations.”

“We’ve had an incredible year,” said Rick Elieson, President, American Airlines Cargo. “We set out to break records and did just that. We achieved a major revenue milestone, but more importantly, our teams handled record volume and still delivered the best operational performance in the history of our company. Thanks to the daily effort of every single team member in this organization, 2018 was definitely a historic year.”

Source: AA Cargo

Year-On-Year Air Cargo Growth Reported for Budapest Airport

Budapest Airport reported record-breaking cargo numbers exceeding its substantial 2017 record numbers and confirming consistent double-digit growth for the last three years, according to a release this week.

“These latest figures are exciting as they represent three years of uninterrupted double-digit growth at the airport,” said René Droese, Director Property and Cargo of Budapest Airport. “We are focusing all our efforts to make good use of the ideal conditions in Budapest and turn Liszt Ferenc International Airport into a major cargo logistics hub for the Central-Eastern European region.”

She added:

“For this, we are establishing appropriate technical, security, and traffic conditions – the relevant projects entered the phase of implementation last year, and we can successfully complete them this year. As a first step we handed over a 16,000 m2 new cargo warehouse and office capacity for our integrator partners in 2017; their traffic has been constantly developing for years.”

Budapest Airport will continue to leverage its cargo success through implementing simultaneous operations of two Boeing B-747-8F freighters.

“The combined value of this development effort in 2019 reaches EUR46 million, and is financed by Budapest Airport itself,” said Droese. “Our goal is to deliver, by the end of this year, an ideal cargo infrastructure for all segments of our well-balanced customer portfolio, for full freighters, belly cargo, integrators and roader feeder trucking too. Rising demand is illustrated by the fact that last year a number of wide body and jumbo freighters were being loaded at the airport each day, including Boeing B-747s operated by Cargolux, AirBridgeCargo, and Silk Way West, and Airbus A300s, A310s, A330s, used by Turkish Cargo and Qatar Airways Cargo.”

 

Source: Meantime Communications

Air Cargo Exports Process Expedited with New Technology in Perth

Air cargo exports are now being processed faster and more efficiently following the investment of new screening technology for Tigers Australia Perth facility. This technology enables the company to perform export screenings internally, making the location the only one in Australia with internal screening capabilities. Tigers is a global organization that specializes in technology enabled supply chain solutions. Based in Hong Kong, the company has international locations including Perth, Adelaide, Melbourne, and Sydney.

The Perth location will continue staying one step ahead through Regulated Air Cargo Agent accreditation before the March 1 national date for the introduction of new policies for conducting air cargo inspections.

“Tigers Australia has purchased the equipment to support our customer base with the new legal requirements, which will impact all air cargo export commodities,” said Jason Radford, General Manager, Tigers Perth. “At the Perth facility, we operate 24 hours a day, seven days a week, so we will also offer the service to the entire Perth airfreight market.

“This will allow export cargo screening to be completed after-hours, therefore reducing the need for customers to deliver directly to the Cargo Terminal Operator (CTO) where wait times can be in excess of six hours. The investment in this equipment will ensure that Tigers Perth remains efficient and will be fully compliant with the Australian government’s air cargo security legislation in time for the implementation date.”

Additional features of the new technology include state-of-the-art X-ray equipment, two explosive trace detection units, and an electro-magnetic detection (EMD) machine.

Source: Tigers

AMAZON AIR ENCROACHING ON UPS & FDX AIR SPACE

“We think the market is missing the risk Amazon Air poses to UPS/FDX growth,” say researchers at Morgan Stanley. “Our work with AlphaWise shapes our analysis of AMZN Air’s impact to date and plots a potential expansion course. Lowering PTs for UPS and FDX and quantifying AMZN savings.”

Morgan Stanley notes that, for now, investors are focusing on Amazon’s last-mile efforts, but the Manhattan-based multinational bank and financial services concern believes the Amazon Air challenge is just as relevant.

“We’ve written extensively on Amazon’s build-out of its internal logistics network, but given Amazon’s plans to take delivery of 40 planes and build an air hub that could potentially handle 100 planes, we’ve taken a closer look at the impact of Amazon Air (its in-house Express Air network) on UPS/FedEx Air volumes,” state the researchers, who point to their own interactive online map.

Learn more at morganstanley.com.

Amazon and the Fort Worth Alliance Airport Launch Facility Development

Amazon’s air needs will soon be supported by DFW’s very own Fort Worth Alliance Airport, pending the completion of construction that kicked off for the new facility, according to a release last week. Launched originally in 2016 as “Amazon Air” representing the company’s first branded aircraft, this facility will primarily serve as a regional air hub.

“We are excited to build a brand new facility from the ground up at the Fort Worth Alliance Airport,” said Sarah Rhoads, Director of Amazon Air. “The new facility is the first of its kind for us and we’re thrilled to ensure we have the capacity to continue to delight our customers.”

With the new facility comes hundreds of jobs, as it was mentioned the framework will be built to support high-scale operations based on company needs. Some of the innovative technology features will include sortation capability and infrastructure to enable more than one flight a day.

“I am glad that Amazon Air selected Fort Worth Alliance Airport for its newest facility. As is proved time and again, North Texas is a great place to build a business and we welcome Amazon Air as the newest addition to our community,” said Representative Michael C. Burgess, M.D. (R-TX)

The announcement received an ample amount of praise and welcome from various players within the industry, including Mayor Bob Golden who commented:

 “Haslet is very happy and excited to welcome another Amazon facility to our city,” said Mayor Bob Golden. “Amazon has been an awesome partner and we look forward to expanding that relationship in the future.”

Developments are underway and will continue to build the facility so operations can begin sooner than later.

“We are pleased to grow our partnership with Amazon here at Alliance,” said Bill Burton, executive vice president at Hillwood, the developer. “As one of the world’s most influential retail, technology and supply chain logistics companies, Amazon’s selection of Fort Worth Alliance Airport will continue to transform the airport’s role within the region.”

Source: Cooksey Communications

Record-Setting Rates for Budapest Airport

Significant increases recorded for Budapest Airport this week in regards to overall trucked and flown freight. There was a 22.9 percent increase from the same time period in 2017 and a 16.3 percent increase in processed air cargo from January through October. Over the course of two years, the airport increased air cargo traffic volume at BUD by an impressive 39.1 percent.

“As of today, our figures for 2018 have already overtaken the entire year of 2017, when we processed 127,145 tonnes of airfreight at BUD, which was our highest yearly amount on record,” René Droese, Executive Director Property and Cargo at Budapest Airport. “Airfreight volumes at BUD continue to grow at an impressive rate, and we will soon be reaching yet another milestone as our 12 months’ volume, currently at 144,017 tonnes, approaches an unprecedented 150,000 tonnes.”

Successful metrics like these reiterate the importance and justification of the most recent implementation of Cargo City, a $32 million dollar investment consisting of a massive cargo handling facility and specialized freighter stands in an aim to centralize cargo operations.

“This growth proves how vital our new Cargo City development will be in order to continue coping with increased demand from carriers around the world, and we are excited about the new capabilities this new facility will bring when it opens in the fourth quarter of 2019,”  Droese said.

Source: Meantime Communications