As we approach 2024, shippers are revisiting their air freight strategies, learning from the dynamic shifts in the market since 2020. The pandemic-induced demand surge for air freight and the subsequent preference for cost-saving ocean freight in 2022 have taught shippers the importance of agility and contingency planning in their global supply chain strategies. Now, with air freight demand stabilizing, it’s time to focus on future-proofing air freight strategies.

Current Trends and Challenges in Air Freight

• Normalizing Demand with Potential for Swift Changes: While demand in the air market has normalized, it remains subject to rapid changes due to various factors like border congestion, peak retail seasons, labor strikes, and geopolitical events.
• Recent Shifts Driving Air Freight Usage: In 2023, challenges like labor strikes in the automotive industry and U.S.-Mexico border congestion forced many to pivot to air freight. Similarly, consumer technology releases and holiday demand spikes are influencing air capacity.
• Nearshoring and Air Freight: Companies embracing nearshoring have found air freight crucial in minimizing disruptions during the transition, especially when recalibrating supply chains for new factory locations.

Strategies for Effective Air Freight Management

• Emphasize Contingency Planning: Prepare for potential disruptions with a robust contingency plan. Collaborate with a trusted freight forwarder to enhance agility and facilitate seamless mode shifts as needed.
• Leverage Freight Forwarder Expertise: A skilled forwarder can offer creative solutions during disruptions, such as rerouting freight or using slower modes to manage inventory build-up effectively.
• Combine Air Freight with Comprehensive Plans: A balanced approach that integrates air freight into a broader strategy ensures operational continuity and risk mitigation.

The Role of Freight Forwarders

• Navigating Market Nuances: In a changing air freight landscape, partnering with a forwarder like C.H. Robinson can provide significant advantages. Their extensive carrier relationships and comprehensive services can guide you through the complexities of air shipping.
• Optimizing Costs and Options: A forwarder with scale can help identify the most cost-effective and efficient air freight options, catering to the specific needs of your operations.

As we look ahead to 2024, it’s clear that a proactive, well-rounded air freight strategy is essential for shippers. By incorporating these best practices and working closely with experienced freight forwarders, businesses can better navigate the fluctuating air freight market, ensuring resilience and agility in their global supply chains