Global Air Freight Sector: Supply Chain Analysis
Globaldata’s Global Air Freight Sector report provides key insights on the global air freight sector, including supply chain analysis, warehousing analysis, and market analysis among others.
Forwarding agents organize shipments to get goods from the manufacturer or producer to a market, customer, or final point of distribution. Forwarders contract with one or more carriers to move the goods. A forwarder does not move the goods but acts as an expert in the logistics network. A variety of shipping modes are used, including ships, airplanes, trucks, and railroads, and often, multiple modes are used for a single shipment. This stage of the supply chain features companies that specialize in these activities, some of which are multi-billion-dollar businesses. Examples of such players are C.H. Robinson and Expeditors International. There is a great deal of backward integration evident at this stage as major logistics players that operate across the chain are a notable presence. Companies like DHL, FedEx, and UPS operate as forwarders for their freight, often through dedicated subsidiaries like DHL Global Forwarding and FedEx Trade Networks.
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Cargo is subject to many regulations, all of which affect Freight carriers. The regulation covers a wide range of issues including customs regulations, transportation of life Animal species, transport of dangerous goods, and transportation of fresh produce.
After the carrier arranges the shipment, the goods will be handed over to the sender. In some cases, It will be transported (often by road) to a facility ready to fly to its destination. In this case, prepared Shipments are made by the manufacturer or retailer, and warehousing is avoided.
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- Warehousing: In many cases, warehousing is not bypassed and is a necessary step. Goods are manufactured in mass quantities in many instances and must be stored before being sold. Some large companies operate their warehousing facilities, while some use specialists. Several real estate companies own significant warehouse space. Segro is a prominent example in the UK. The use of owned warehouse facilities is common among e-retailers like Amazon and ASOS which use in-house facilities to store goods and better control/monitor inventory
- Handling Agents: Aircraft ground handling is the servicing of an aircraft while it is on the ground at an airport. Ground handlers perform passenger and cargo-related tasks. There are specialist firms and subsidiaries of airlines active at this stage of the supply chain
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