Scarcity in air freight capacity requires innovative solutions

Demand for air cargo is high while available space is decreasing. Compared to September 2019, there was thirteen percent less cargo space globally this year. Air freight analyst CLIVE Data Services states that the average global load factor in air freight has risen to historic highs for the time of year.

The load factor reached 68 percent in September, a record since Clive began monitoring load factors in May 2018. Director Van der Wouw warns that the nervousness around available air cargo capacity can cause a turbulent market. Since the stakes are high to get goods to the receiver, shippers and forwarders may start bidding against each other to have sufficient cargo space.

A very fast way
It is expected that with the recovery of intercontinental passenger flights, more belly capacity will become available in the coming months. However, regular air freight and belly cargo are not the only ways to transport goods by air. Goods are increasingly transported by On Board Couriers: couriers who accompany passenger flights with air cargo shipments. An On Board Courier takes the shipment in hand or hold luggage and delivers it personally: a very fast way to get goods from A to B, anywhere in the world.

Yusuf El Kholy, managing director at MYOBC, sees that the demand for these services is increasing: ”Our services are mostly used to get time-critical shipments to their destination as quickly and as safely as possible. Since 2020 we see the trend that On Board Courier solutions, can also offer alternative to regular airfreight shipments. This is a clear consequence of scarcity in air cargo capacity.” In one of the shipments carried out by our On Board Courier solution, a total of 17 boxes á 23 kg were transported from Amsterdam (NL) to Atlanta (USA). The total of 391 kg was delivered within 16 hours.

Often the same day
The strength of On Board Courier services lies in safety and speed. Goods can often accompany the courier on the next passenger flight to the final destination, which means that the goods can often reach the other side of the world on the same day.

Due to scarcity in air cargo capacity, it is becoming increasingly difficult for carriers to get goods to their destinations on time. The consequences? Stalled ships, Aircrafts On Ground or factories that can no longer run. To still be able to deliver the goods on time, MYOBC’s solutions play a crucial role for forwarders and shippers.

Want to learn more about MYOBC’s services? Contact our operations team.

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