Air cargo forwarding
What is air cargo?
When you think of cargo, you likely visualize massive ships carrying thousands of containers across the ocean.
But in many instances, cargo is sent by air — often right under your nose… or airplane seat.
You probably also think of air cargo as a prohibitively expensive option. But in certain cases and with the right air freight forwarder, you could end up paying less to ship faster.
In this article, we will review exactly how that’s possible and why your next cargo shipment might just be airborne.
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What is Air (Freight) Forwarding?
Air freight forwarding is the process of organizing and planning the transport of freight from one point to another by air.
While freight forwarders don’t physically move your cargo, they do assist in every facet of your shipment, simplifying the process and taking on the burden of communicating between all of the people and moving parts that are typically involved.
Some forwarders specialize in ocean freight, while others work specifically with air freight.
An air freight forwarder specializes in moving freight by air on either passenger aircrafts or specially designed cargo aircrafts. This specialization enables them to better understand the intricacies of air freight, create a relationship with the TSA, and, in many cases, provide better air rates.
Air Freight Logistics
International air cargo is heavily regulated. As such, many opt for a freight forwarder who works exclusively with air shipments.
An international air freight forwarder can help you navigate through all key freight documents, insurance, customs, air freight logistics, and any turbulence you encounter along the way.
An international air freight forwarder can also ensure that your goods are packed to fit the non-traditional shape of an aircraft and effectively optimize the space you pay for.
Air Freight Transportation & Process
Air shipments are faster and more reliable than ocean shipments. As counterintuitive as it might seem, they can also be cheaper.
How is that possible?
The way prices are calculated for ocean and air shipments are fundamentally different. The cost of sending cargo on a ship is generally calculated by its volume. Conversely, the cost of sending cargo by air is generally calculated by its weight.
Additionally, ocean shipments commonly have minimum weights and measurements that must be met.
As such, large and heavy shipments are almost always cheaper to send by ocean, but smaller and lighter shipments can actually be cheaper to send by air.
The trick is to figure out whether your freight meets that happy medium.
Calculate Air Freight Rates
The easiest way to know if air cargo is right for you is to get a broad picture of your options.
You can do this easily using our freight rate calculator:
Simply enter your dimensions and weight and get an instant estimate. You can also get live quotes directly on Freightos.com.
Read more about calculating freight forwarder costs and fees.
Air Freight Brokers
Air freight can be fraught.
Airlines typically offer cargo options, but for many shippers it can be hard to figure out the best option from a wide variety of choices. Air freight brokers help navigate this complexity by delivering the best shipping options at the best price. Air freight brokers can also help plan the shipment and coordinate between multiple carriers or destinations, ensuring that goods arrive on schedule and on budget.
Brokers are adept at negotiating for space, speed, and cost, saving you the time and hassle and making shipping smoother than going it alone.
Top Air Freight Companies
Air freight is a fairly fragmented field, with the top ten air freight companies and forwarders dominating only 39% of the market.
The top air freight companies have remained ahead of the pack for years:
- DHL Global Forwarding
In 2015, DHL Global Forwarding air freight revenue reached $5.4 billion dollars. In 2015, it moved 2.1 million tonnes of air freight, over 60% more than the next forwarder in line.
- DB Schenker
Headquartered in Germany, the freight giant employees nearly 100,000 employees around the world. In 2015, it saw $3.8 billion in air freight revenue.
- Kuehne + Nagel
Between ocean and air freight shipping, this company holds close to 10% of the freight market. IN 2015, air freight revenue reached $3.3 billion.
Founded in 1936, the Swiss forwarder saw $2.5 billion in air freight revenue in 2015. It also has one Boeing 747, leased from Atlas Air Cargo, which it called “Spirit of Panalpina”.
A relative newcomer, founded in 1979 in Seattle, Washington, this US forwarder had $2.51 billion in air freight revenue in 2015.