Air Freight Takes Flight

It’s tough to disagree that 2010 has become a very tough year pertaining to transportation, freight, cargo and logistics industries. Almost all carriers, steam lines, railways, and truckers have been confronted with reduced freight volume, slim earnings, and many have faced hard layoffs. One section of the marketplace has performed surprisingly well on the other hand: Air Freight.

Air Freight volumes have risen nearly 40 percent during the first six months of 2010. Global freight trends have suggested that Air Freight, and Freight Forwarding have skyrocketed at virtually triple the rate of ocean forwarding (ship cargo) with regard to the initial half of 2010, at the satisfaction of many air freight executives. Nearly all freight forwarders would certainly welcome this sharp rise in business following 2009 which proved to be a year of reduction in shipping and freight volume.

Transport Intelligence has announced that Air Freight is increased in excess of 38% throughout the initial six months of 2010, even while Ocean Freight Forwarding is up a mere 13 percent. Despite the fact that many would accept any positive increase in volumes at this time, the actual point that Air Freight reported such considerable advances in comparison to Ocean Cargo leaves the marketplace in a holding pattern while waiting in order to observe if freight distribution may come back to to more traditional levels. Transport Intelligence is convinced the particular increase in these trends followed by freight carriers and cargo shiplines decision to restrict capacity will be certainly putting pressure on shippers and their third party logistics companies to pay increased costs of operations. Transport Intelligence’s Report may be found here (http://blog.freightaccess.com/2010/08/annual-global-freight-forwarding-report-2010-from-t-i/).

The Annual Global Freight Forwarding Report written by Transport Intelligence noted an increase in volume with regard to the transportation marketplace felt by freight carriers, which actually followed a 23 percent decline in 2009 from 2008 shipment volumes. It appears this unpredictability in cargo volume has not been simple to accept for freight forwarders and cargo carriers. Just six months ago a lot of of these third party logistics providers and airlines were worried about how to maintain operations at slim staff levels and now many have been slammed with a lot more business than they may handle with existing resources.

The freight marketplace is expecting a balancing time period returning to more historic freight volumes and absence of such unpredictability. Most manufacturers have forgone classic supply chain inventory because of to a variety of aspects such as absence of accessible business funding. The absence of inventory helps to clarify the increase in air freight traffic. It appears that inventories will return to regular levels over the next few years. Transportation Intelligence thinks it may take until 2013 to be able to rebound to pre-2013 levels particularly in Europe.

Greater Security of Freight Cargo presents minor problems throughout first week of enforcement.

This week, the national procedures requiring 100 percent scanning of air cargo moving in passenger aircraft went in to effect. Almost all Freight Forwarders experienced little if any impact, as more than 95 percent reported no problems throughout this first week. More than 709 surveys were sent to the Air Freight Association looking to obtain feedback relating to the simplicity of integration. Only five percent of respondents noted major issues adhering to the new legislation, which were not correlated to any particular airline nor any airport.

The transition came at a really beneficial time for the air freight marketplace as August is generally a slow month for airlines and freight carriers. The AFA attributes this smooth transition to the educational efforts and preparedness procedures put forth by the AFA, federal government, and a lot of freight forwarders to make sure integration has been carried out correctly.