4 modes of freight transportation: Part III

People outside the shipping, logistics, supply chain...etc. industries are typically only exposed to the last part of a shipment - 'when it delivers'. The 4 primary modes of transportation: Ocean, Rail, Air, and Trucking and this series shares insight on each mode to help educate those who want to learn more about the freight transportation industry.

Part I of this four-part series covered Ocean Freight which dates back to ancient civilizations, such as the Egyptians and Phoenicians, who used boats to transport goods along rivers and across seas. Part II focused on Rail Freight and how since the mid-1800s, railroads have become the dominant mode of transportation for freight in the United States.

Part III of this series touches on Air Freight, including the history, where the air freight market stands, and the advantages & disadvantages.??

Part 3: Air Freight

History

With significant growth and changes not occurring until the latter half of the 20th century, the air freight industry has a relatively short, but very interesting history.?The first recorded air cargo flight took place in 1910 in the United States, when a plane carried a package of silk from Dayton, Ohio to Columbus, Ohio. However, it was not until the 1940s and 1950s that air cargo began to gain momentum as a viable means of transportation for goods.

During World War II, air cargo played a crucial role in military logistics, and after the war, surplus military transport planes were repurposed for commercial use. The development of larger and more efficient planes in the 1950s and 1960s, such as the Boeing 707 and Douglas DC-8, made air freight more economical and widespread.

The 1970s and 1980s saw significant growth in the air freight industry, with the establishment of dedicated cargo airlines and the expansion of existing passenger airlines into the cargo market. The introduction of containerized air cargo, similar to that used in the shipping industry, also made it easier to transport goods by air.

The 1990s and 2000s saw continued growth in air freight, with the rise of e-commerce and the globalization of trade. However, the industry also faced challenges, such as the economic downturn after the September 11th terrorist attacks and increased competition from other modes of transportation, such as sea and rail.

Current state and projected growth

Today, the air freight industry continues to be an important component of global logistics, with approximately 35% of international trade by value transported by air. The industry is dominated by a handful of large corporations with fleets of aircraft, as well as major passenger airlines that operate dedicated cargo divisions.

The COVID-19 pandemic had a significant impact on the air freight industry, with reduced passenger flights leading to a decrease in available cargo capacity and an increase in rates. Another challenge facing the air freight industry is its environmental impact, with planes producing significant amounts of greenhouse gas emissions. However, the industry has been exploring ways to reduce its carbon footprint, such as using alternative fuels and more efficient planes, and developing sustainable practices.

The global air freight market reached a value of ~$270 billion (USD) in 2021 with a projected value of ~$390 billion by 2027, exhibiting a CAGR of 5.80% during 2022-2027

The global air freight market reached a value of ~$270 billion (USD) in 2021 with a projected value of ~$390 billion by 2027, exhibiting a CAGR of 5.80% during 2022-2027 according to Businesswire.

Use Case

Air freight transportation is the fastest mode of shipping goods over long distances. It is ideal for high-value, time-sensitive cargo that needs to be transported quickly, such as electronics, medical supplies, and perishable goods. Here are a few advantages and disadvantages of air freight:

Advantages:

• Fastest mode of transportation.
• Can transport goods to almost any location in the world.
• Less handling/reduced risk of damage.

Disadvantages:

• Higher cost compared to other modes.
• Capacity can be limited.
• Subject to weather and airport delays.

If you didn’t get a chance to check out the previous articles, here is a link to?Part I: Ocean Freight and Part II: Rail Freight.

Up Next, Part IV: Freight Trucking

What are your thoughts on the current state of Air Freight? Drop a comment or reach out to me directly and we can chat!

#supplychain #airfreight #aircargo #logitics