The Impact of Air Freight on the Global Economy

The global economy is heavily reliant on the ability to provide quality products at competitive prices to consumers around the world. The availability of air cargo has revolutionized global trade and, in turn, the economies of many countries. As air transport connectivity and the volume available have increased, so have export and import opportunities. This has resulted in a reduction in costs.

Air cargo has enabled countries, regardless of their location, to connect to other markets. The main challenge for landlocked developing countries is to generate enough traffic to attract frequent and competitively priced air cargo services. As the advantage of air transport is that transit times are much shorter, cargo must travel quickly through an airport. Similarly, manufacturers of apparel, electronics and other products will compete for larger orders, shipping the large initial order by sea freight and then using air freight to replenish their inventories if demand is greater than expected.

Demand for air cargo exports in landlocked developing countries has been limited because most companies ship small volumes of low-value products. Air transport will continue to support production activities, especially the exchange of samples and the delivery of essential spare parts and high-value supplies. Air transport is more expensive than maritime transport, but due to high margins and the fact that many electronic products are fragile, air transport is the most suitable means of transport. It is also important to expand the role of consolidators, especially large integrators, such as UPS, and international freight forwarders specializing in air cargo, such as Kelly Logistics, as well as local freight forwarders with international connections.

Finally, air transport will become increasingly important to support reverse logistics, including repair and warranty work for electronic products and other high-end consumer goods. However, without significant outflow, inbound air freight rates are higher, reducing the types and quantities of goods transported by air. Air transport diversification can also be used as part of a diversification strategy to introduce products with a shorter lifespan or to provide reliable delivery of smaller volumes to new markets. While it is important for potential exporters to have access to air cargo services, they must also manage their supply chains to offer a competitive balance in terms of cost, speed and reliability of shipments.

It is clear that air transport has established itself in recent decades as a decisive factor for economic development at the local, national and international levels. When exports require cold chains, air transport may be the only means to ensure continuity. Sending samples Air transport is essential for shipping patterns, designs and technical drawings of products. Air transport will also open up new markets by providing fast and reliable service for initial product deliveries.

For shorter distances, air freight rates per kilometer are higher because most of the journey takes place both on the ground and in the air going up and down.

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