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Guest Comment
www.bifa.org
Focusing on the airfreight delivery cycle
Brandon Fried, executive director of the Airforwarders Association is one of the USA’s leading experts on air freight and cargo security. With more than 40 years of experience, Brandon is the public face of the Airforwarders Association in Washington, testifying in Congress, working with the Department of Homeland Security, and frequently appearing in national media including CNN, The Wall Street Journal, CBS Marketwatch and the New York Times. A graduate of Syracuse University, Brandon holds a master’s degree in business administration.
In this age of heightened political rhetoric, we tend to trust the media to present only the facts, but reporters often disagree about what the actual facts are. We have seen this play out recently though a constant stream of reports asserting that older, legacy forwarders are responding inadequately to our changing industry. The stories are simply untrue and share a lack of valid data as a common thread. The issue is not with the way forwarders are evolving in the industry, but how they are overcoming obstacles to transport cargo successfully.
The primary advantage of air cargo is its expediency compared with other modes of transportation. But the flight itself, however, is the shortest and simplest part of the journey. Between customs clearance procedures, handling to and from the plane, and manipulation in the terminal, delays are most frequently encountered on the ground – and it is the forwarder’s job to ensure that cargo is navigated through this process and arrives at its final destination.
Causes of delay Recently, claims have indicated that the average transit time for international shipments is about six days. The majority of that time is spent navigating the antiquated road structure in and around airports, ground handling delays, outdated warehouse infrastructure and crowded customs procedures. In the light of these challenges, forwarders tend to receive the blame for not investing more in technology designed to accelerate the process. As seasoned forwarders know, airfreight is not always about speed alone; indeed, for many shipments, speed is not the primary consideration in achieving client satisfaction. Quite frequently other factors, including a
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forwarders of all sizes and ages continue to derive benefits from automation. However, technology applications are merely tools and not the product forwarders provide. Advances in computerisation may ease shipment process complexity but rarely solve the real-world challenges forwarders, large and small, regardless of age, face daily. Forwarders know that despite best-laid plans, things may not always proceed as planned. Lasting customer relationships are built on logistical problems where the forwarder’s willingness and capability of solving complex challenges is demonstrated. Our industry thrives on problem-solving when avoidable issues create obstacles that depend on personal experience to overcome. Shippers want dependable, consistent and reliable service for life and wellness, manufacturing support and, of course, today’s e-commerce fulfillment needs. The larger and long-established forwarders understand the complex state of the industry and have been aggressive in navigating the labyrinth of shipment obstacles. Technology remains a tool, but people, global presence and trade knowledge continue to be the primary and irreplaceable value deliverable. For example, to alleviate capacity issues, some organisations charter flights to accelerate transit times.
budget, terms of sale and required assembly services, play a role in the timing of the shipment. Faster transit time compared with slower modes may be a factor. Still, service options and choices, such as special handling, destination requirements and post-delivery services, are often more critical in meeting customer needs. We know that technology is undoubtedly
essential to forwarders, as many are seeing increased customer demand for primary deliverables such as faster order processing and vendor flexibility. Contrary to recent claims, even the oldest forwarders are increasingly investing significant financial resources in technology development to provide a more efficient customer experience and to increase information transparency. The forwarding industry is also investing in innovative products from upstarts, leveraging technology as a primary tool in achieving customer satisfaction and transaction speed.
Indeed, advances in technology are enabling more efficiencies in forwarding than ever, and
Advice and help These forwarders employ talented experts who can provide advice and help shippers understand the impact of trade tariffs and global uncertainty. These more experienced companies, and many of their smaller counterparts, are providing the necessary services shippers want by presenting options and choices resulting in a smarter shipment experience which factors in every critical factor – not just speed in transit.
As our industry enters the new decade, challenges and opportunities are on the horizon for shippers. Forwarders need to be ready to assist these customers with the necessary logistical tools and insights. The forwarding industry must continue working with customs officials, local governments and all relevant stakeholders to develop solutions to overcome time-wasting obstacles on the ground in and around airports. Creating efficiencies there will help accelerate the airfreight delivery cycle. Blaming forwarders for the problem for their lack of technology adoption, based on unsubstantiated facts, is a futile exercise and, ultimately, a waste of time.
April 2020
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