Streamlining Air Freight During Peak Season

As the end of the year approaches so do numerous international holidays and celebrations, bringing increased purchasing and consumption. To combat end-of-year issues such as inventory shortages and unforeseen transport delays, shippers will typically increase their usual quantity and frequency of air shipments. In normal years, the global airfreight market had enough capacity to accommodate this increased demand.?

However, due to the surge of eCommerce, shippers this year will likely find themselves priced out of previously attainable air capacity. Led by retailers like Shein, Temu, and Alibaba, eCommerce demand has already driven up the normally softer rates of the summer season. It is estimated that eCommerce already accounts for roughly 20-25% of global tonnage, jumping to 60-70% for the transpacific trade lanes, allowing eCommerce shippers significant negotiating power and long-term space reservations.?

Airfreight capacity has also become further constrained by the increased levels of ocean diversions currently being seen. Vessels rerouting around the horn of Africa to avoid the Red Sea Crisis, port congestion, and potential U.S. dockworker strikes have been raising both customer doubts and ocean rates. FEU rates are nearly 300% higher than this time in 2023. The drastic increases in container rates are making air a more attractive and attainable method of transport.?

These globally altering events combine with normal activity levels to form a peak season for airfreight. As peak season becomes a reality, it remains critically important to ensure you have an efficient plan in place to guarantee the accurate and timely delivery of your shipments.

Through mutual investment in forecasting, as well as our emphasis on readiness and preparation, Expeditors can help your business plan and execute a successful peak season strategy. Short of an official plan, the below material highlights specific actions you can take to prepare for the upcoming airfreight peak season. These suggestions are a collection of recommended practices that will support you during times of increased activity and supply chain disruption.?

Provide Frequent Forecasting Information

• Provide accurate monthly forecasts as soon as possible and weekly forecasts during peak season
• Establish a weekly cadence of planning calls with your logistics provider to cover what was originally forecast for that week versus what actually moved and adjust accordingly

Prioritize Orders

• Clearly communicate prioritization needs for special orders, such as new product launches, time definite deliveries, and tonnage over allocation

• Partner with Cargo Signal ? as an opportunity to increase security and visibility to high-priority shipments

Anticipate and Plan for Extended Transit Times

• Break-down large orders to create smaller shipment sizes that move more frequently
• Provide a required delivery date for all shipments
• Consider a final-mile program to bypass distribution centers to save both time and money

Read the full article to learn how to streamline and strategically plan the challenges of peak season to ensure your cargo arrives without delays or disruptions.

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