WEEKLY NEWS


SHIPPERS’ PERSPECTIVE ON AIRFREIGHT IS SHIFTING


AIR CARG O WEEK


BY: Colin DUNNE, Director of Air Product at C.H. Robinson


TRADITIONALLY seen as an expensive mode to combat unforeseen delays, more and more shippers are making airfreight a part of their planned shipments. According to IATA, demand grew 11 percent year over year in December, marking 14 consecutive months of double- digit increases. By March 2025, capacity had grown by 4.3 percent, with over half of global air cargo now moving in belly-hold space. Airfreight will continue to serve as a last-minute problem solver in


02


today’s logistics landscape, with geopolitical conflicts, significant tariff changes, and unexpected weather. However, more companies are realising that when considering the full cost equation, airfreight can be the smarter financial choice when used strategically.


Why freight rates don’t tell the whole story It’s easy to compare ocean and airfreight on price alone. Ocean shipping typically costs around 3 percent of a product’s value, while


airfreight can exceed 10 percent. But that’s only part of the picture. What’s often overlooked are the broader financial impacts—like


inventory carrying costs, time-to-market advantages, and the cost of downtime. When you factor in these variables, airfreight can at times deliver a stronger return on investment.


The real cost equation To make informed decisions, it’s important to evaluate transportation through a comprehensive lens. Here are the key pieces to include: Inventory carrying costs: Goods in transit or storage tie up


capital. Ocean shipments can take 30–60 days, while airfreight arrives in 2–5 days—freeing up working capital faster. Time-to-market value: In fast-moving industries, being first to


market can mean capturing more sales and market share. Cash flow impact: Faster delivery often means faster payment,


improving your cash-to-cash cycle. Downtime costs:


In industries like mining or manufacturing,


delays can halt production—costing far more than expedited shipping. We’ve seen many of our automotive customers implement more airfreight, given they typically operate on a just-in-time inventory model. Missed opportunities: Delayed inventory can result in lost sales


during peak holiday seasons or product launches. For instance, if Christmas décor arrives after the holidays, retailers then face the decision of either discounting the inventory and occupying valuable shelf space, or storing it for a year—potentially straining already limited storage capacity.


Smarter shipping starts with smarter strategy The secret to effective logistics isn’t committing to one mode. It’s understanding when your cargo is available and when it needs to arrive. From there, we help shippers determine the ideal solution that balances transit time and cost. That might mean using ocean freight for routine replenishment, air


consolidation for time-sensitive shipments, and next-flight-out for emergencies—all within the same supply chain. The bottom line is: airfreight isn’t just for emergencies. When you


Did You Know ? FIRST TRANSATLANTIC CARGO BY Michael SALES


ON 12 April 1927, a fire broke out on the top floors of the partly constructed 38-storey Sherry-Netherland Hotel on New York’s Fifth Avenue. The blaze could be seen for miles, and burning ashes falling onto surrounding buildings caused yet more fires. The unfortunate and heroic firefighters could not access the 500- foot building, allowing the mass of combustible material on the unfinished high floors to burn freely. An estimated crowd of 100,000 gleeful spectators watched below. Meanwhile, not far away over Long Island,


a miracle of flight was underway. Two intrepid aviators, Clarence Chamberlin, an experienced barnstorming pilot from Iowa, and Bert Acosta from San Diego, regarded as the best pilot in the USA, took off from Roosevelt Field with


375 gallons of fuel and other necessities. The Bellanca-Wright plane WB-7 (later to be renamed the “Miss Columbia”) cruised over Long Island. The flight encountered many problems, despite


but these challenges, it


the time Chamberlin ran out of fuel near Berlin, Germany, he had flown 3,911 miles, in 42 hours and 45 minutes. Bert Acosta went on to become chief pilot


proved


successful—flying for 51 hours, 11 minutes, and 25 seconds, approximately 4,100 miles, about 500 miles further than that needed for a New York to Paris flight and the US$25,000 Raymond Orteig Prize. “It was Charles Lindbergh, in his Spirit of St. Louis, who, flying solo, led the famous race— over 3,610 miles.” Only two weeks later, Clarence Chamberlin


flew over the Atlantic on a flight that broke Lindbergh's record. With him was the airplane’s owner, Charles A. Levine. Levine had kept everything about this flight a big secret, including the destination. No one even knew that Mr Levine planned to go as a passenger! By


on Cmdr Byrd’s 1927 “America” transatlantic flight. His many years of skill and experience flying heavy transport aircraft got the heavy trimotor airborne off a short, muddy grass runway. The total weight—7½ tonnes— comprised


the plane, cargo, and crew,


including 150 pounds of mail. This marked the first transatlantic transport flight to deliver airfreight to Europe. And so, the delivery of urgent cargo by air


began its long upward climb to today’s massive multi-billion-dollar industry.


AZURA in INTERNATIONAL


The views and opinions expressed in this publication are not necessarily those of the publishers. Whilst every care is taken, the publishers cannot be held legally responsible for any errors in articles or advertisements. No part of this publication may be reproduced, stored in a retrieval system or transmitted


any form or by electronic, mechanical, photographic or other means without the prior consent of the publishers. USA: The publishers shall not be liable for losses, claims, damages or expenses arising out


of or attributed to the contents of Air Cargo Week, insofar as they are based on information, presentations, reports or data that have been publicly disseminated, furnished or otherwise communicated to Air Cargo Week. © AZura international 2024 • ISSN 2040-1671 - Printed by Warners Midlands plc. The Mailing, Manor Lane, Bourne, Lincolnshire PE10 9PH


evaluate the full cost equation, it can be a strategic tool that improves cash flow, reduces risk, and drives better business outcomes.


T: +44 (0)1737 906107


Advertising: sales@azurainternational.com Press releases: news@azurainternational.com


The ACW Team Editor:


Supplement Editor: News Reporter:


Regional Representative (APAC):


Edward Hardy James Graham


Anastasiya Simsek Ajinkya Gurav


Regional Representative (North America): Oscar Sardinas Associate Editor:


Director of Operations: International Media Sales Director:


Chris Lewis Kim Smith


Rosa Bellanca


Senior Publishing And Events Manager: Chris Richman International Sales Executive: Finance Manager:


Design & Production Manager: Production Supervisor: Website Consultant: Managing Director:


Zainab Khalid Rachel Burns Alex Brown Kevin Dennis


Tim Brocklehurst Steven Polmans


ACW 28 JULY 2025


www.aircargoweek.com


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14