Air freight depends on the proper loading and unloading of goods on the tarmac. It is vital to global trade, offering unparalleled speed and efficiency. Optimizing this mode of transport is essential to ensure smooth operations, particularly for expedited cargo that could seriously derail downstream ops if a delay occurs. According to data from Statista, after three years of a downward trend, the air freight market is expected to expand and reach approximately 210.3 billion U.S. dollars by 2027. The mounting growth makes now the perfect time to focus on optimizing your air freight operations.
These are time-sensitive shipments, and a SaaS-based process coupled with BI technology can go a long way in optimizing everything that needs to happen for successful use of air freight.
What is air freight optimization
Imagine Jason Bourne globe-trotting around with his mission. How effective would he be without Nicky Parsons, his handler? Your air shipments are just like Bourne, and freight management is like Parsons. Air transport is often only one part of intermodal transportation in a complex process. Optimizing your air cargo shipment thus involves fine-tuning every aspect of air freight management and what leads up to and away from the actual takeoff to achieve maximum efficiency and reliability as delays here can ripple effect throughout the supply chain link.
This includes coordinating the precise timing of shipments, ensuring seamless communication between all parties. The goal is to eliminate delays, reduce costs, and deliver goods swiftly and safely from origin to destination.
The importance of detail in air freight
This mode of freight management involves many components. For example, some goods may involve express freight shipping and might have a single carrier. Another may involve multiple carriers and jump across LTL and different deconsolidation stations.
Manufacturers may use multiple suppliers globally to procure raw materials, thus creating multiple loading and unloading destinations. Air freight recovery–the process of picking up freight after it’s arrived at a terminal, is crucial because any mishap here can ripple through the logistics chain, causing significant delays and increasing costs. For instance, improper handling during unloading can lead to damaged goods and missed connections. In some cases, the actual processes for recovery can vary widely from terminal to terminal.
Challenges in air freight management
Managing air freight comes with its own set of challenges. Some of the most common pain points are as follows:
- High fuel costs: One of the most significant factors that affect freight expenses is high fuel costs, and no mode is more fuel-costly than air freight. The goal is to eliminate unnecessary legs and consider whether going by ground would work for these shipments.
- Regulations affecting cargo: Noncompliance with air terminal rules and regulations can lead to fines, penalties, and even cargo loss. Working with an expert who understands the individual nuances will reduce upset and keep your freight hitting the skies on time.
- Demand volatility: Uncertainty is a common challenge due to the fast-paced nature of global trade. A flexible supply chain coupled with advanced analytics for demand forecasting and inventory management can facilitate nimble air freight logistics solutions.
- Handling potentially dangerous cargo: Certain classifications of cargo can add complexity to the already unpredictable global supply chain logistics world. Hazardous materials that require special handling need experts who can plan, prepare and execute this operation with great care. Specifically, lithium-ion battery regulations are among the biggest issues affecting air freight right now.
- Avoiding miscommunication: Freight teams and air terminal operators must always be on the same page. If not, delays and even the misplacing of precious freight can occur. Adopting real-time monitoring and data analytics can significantly reduce this, thus saving both time and money.
The benefits of optimizing air freight
Optimizing air freight goes much further and offers more benefits than a single opportunity for savings. Here are some benefits of bullet-proofing your air supply chain:
Data-driven decision making: A no-brainer in global supply chain operations, data facilitates several aspects of this industry, such as forecasting demand and managing inventory. This facilitates key players' making informed decisions with thoroughly vetted data. - Competitive advantage: This is another crucial benefit of optimizing air freight. Companies that deliver faster and more efficiently are the need of the hour. We live in a time where data is dynamic, and prime decisions are made based on current trends and data. Your partnerships in handling urgent air freight will affect your competitive advantage.
- Risk management and compliance: Proper air freight tracking and optimization directly impact risk in your supply chain. Thus, logistics players are spared unnecessary costs and penalties arising from noncompliance with air terminal operators, customs, security, or even environmental regulations–depending on your precise actions.
- Flexibility and support: Outside expertise in air freight creates scalability to meet your customers' needs without sacrificing speed or reliability. Additionally, incorporating managed transportation services can further enhance your operations by providing support for when and if things go wrong.
Steps to optimize your air freight operations
Air freight operations need to be precise, simple, and optimal. Here are some actionable steps to guide you:
- Build a reliable network: Partner with experienced providers who have experience handling air freight recovery. This includes ensuring access to qualified drivers and maintaining a network capable of handling your needs.
- Plan for every possibility: Develop comprehensive contingency plans for potential disruptions, such as weather-related delays or mechanical issues. A proactive approach ensures your operations remain resilient even in the face of unexpected challenges.
- Work with a logistics partner: Get an expert provider to manage your air cargo. A supply chain partner with experience and round-the-clock service is necessary for peak performance.
- Use advanced analytics: Cut costs and increase your market demand through data. Delays and penalties can cause already rising costs to soar further.
Improve air freight with IL2000
Speed, precision, reliability, and meticulousness are essential for air freight management. Because of the speed factor, often necessary for delivering life-saving drugs, time-sensitive equipment, or critical machinery spare parts, air transportation is a go-to shipping mode. But it may not always be the just-right mode for your load. Valuing urgency and quality doesn’t mean always going by air, but it does mean that you need a logistics partner that meets your needs and, more importantly, understands the business of air transportation.
IL2000 is dedicated to helping businesses elevate their logistics by offering expert solutions. Let us be the Nicky Parsons to your Jason Bourne of a business.
Connect with IL2000 to learn more about improving air freight.