After the booming ocean cargo season that turned a sprinkle of profit into a firehose, any slowdown will feel like the world is ending for ocean carriers. So to maintain their success, some of the biggest ocean carriers are announcing an air cargo arm to bolster their service offerings and offset the reduction in ocean freight profits. However, by moving towards air cargo services, they’re weighing an increased cost (air freight is significantly more expensive) against the speed and efficiency of using aircraft.
One of the critical issues for carriers considering air freight services is cost. Nowhere is it more evident than in oversized, heavy freight that takes up significant percentages of air capacity. Carriers are looking less for heavy freight diversion and more at smaller and ultra-critical cargo that’s doing a disservice to the industry by sitting on the water for days. As e-commerce continues to boom, shippers are looking skyward for solutions.