Air Freight Services Sourcing Intelligence Forecast To Register CAGR Of Over 6% Till 2030Posted by rahul nikade on May 23rd, 2024 Air Freight Services Procurement Intelligence In this air freight services procurement intelligence report, we have estimated the pricing of the key cost components. We have found that for an air freight service provider, the total cost of ownership can include - the cost of the aircraft body or carrier, fuel and energy, gross weight, dimensions and volume of the package, air freight rates and surcharges, pre-export charges, location or destination, number of items, labor, taxes, and tariff, and other costs. Operating expenses such as fuel, direct maintenance, depreciation, and labor can account for between 40 - 50% of the total cost. Fuel and energy costs alone can account for between 12 - 18% of the total cost. The rates for international air cargo prior to COVID-19 ranged between USD 2.50 - USD 5 per kilogram, depending on the type of cargo and available space. Air cargo rates reached an average of USD 4 - USD 8 per kilogram in February 2020 after COVID-19 caused severe disruptions in ocean freight and consumer demand. In Q1 2023, air freight rates dropped to about USD 3 - 7 per kilogram, which is still higher than pre-pandemic levels, mainly due to the cost of fuel and labor. Order your copy of the Air Freight Services category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis Operational Capabilities - Air Freight Services
Functional Capabilities - Air Freight Services By type of flights
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Rate Benchmarking The geographical location, the gross volume, and weight along with the dimensions of the package impact the prices of air freight services and play a vital role in rate benchmarking. In our research, we have analyzed the rates of air freight services in the U.S. region. As a matter of price, air freight service providers will either charge by volumetric weight, dimensional weight, or actual weight. Compared to ocean freight, the price of air freight is high. For instance, an air shipment from Shenzhen, China to Los Angeles, USA, can cost up to USD 8,000 or more, compared to ocean freight, which costs USD 1,500. However, this difference might be smaller when prices shift as a result of supply chain interruptions. Due to a slowdown in the export market and increased capacity, air freight rates out of India experienced considerable adjustments in May 2022. Rates decreased as a result of the usual perishables season coming to an end, particularly with shipments of Indian mangoes. Due to the slowing of global demand, air cargo rates from India were mostly on a downward trend. Cargo volumes decreased in India, partially as a result of decreased manufacturing output and freight movement in and around Shanghai as a result of Covid-related lockdowns and restrictions starting in mid-March 2022. In July 2022, according to industry freight leaders and experts, the average prices to the U.S. from India were around USD 5.35 per kilogram, which was down from USD 6.50 in June 2022. Rates from India to Europe decreased to USD 2.50 per kg from USD 3.50 in July 2022. However, airfreight costs for cargo arriving from India remained largely stable in July 2022. Supplier Newsletter In May 2023, DHL Aviation, DHL’s in-house airline recently introduced a new GoGreen Plus service, which is optional, for its air freight products. Utilizing Sustainable Aviation Fuel (SAF), clients can use the new GoGreen Plus service to minimize the carbon emissions related to their shipment. The service is operational since June 2023. In April 2023, Turkish Cargo, the airline's air cargo brand, and DHL Global Forwarding officially signed a Memorandum of Understanding to strengthen their bilateral relationship. SMARTIST, Turkish Cargo's cargo facility at the Istanbul airport, has been integrated into DHL Global Forwarding services. The carriers' collaboration aimed to increase each other's operational effectiveness and increase Istanbul's potential to become a major global logistics hub. In February 2023, in an effort to establish an "air cargo network of the future," Ameriflight, a company with partnerships with UPS, FedEx, and DHL, has agreed to acquire 20 autonomous aircraft from Natilus for USD 134 million. List of Key Suppliers
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Air Freight Services Procurement Intelligence Report Scope
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