Its difficult to disagree that 2010 has become a very difficult year pertaining to transportation, freight, cargo and logistics industries. The majority of carriers, steam lines, railways, and truckers had been confronted with diminished freight volume, slim profits, and nearly all have experienced hard lay offs. A single section of the marketplace has performed surprisingly well on the other hand: Air Freight.
Air Freight volumes have increased almost 40 percent through the first six months of 2010. Global freight trends have indicated that Air Freight, and Freight Forwarding have exploded at almost three times the rate of ocean forwarding (ship cargo) for the first half of 2010, to the satisfaction of nearly all air freight management. The majority of freight forwarders would welcome this steep increase in business after 2009 which in turn proved to be a year of reduction in shipping and freight tonnage.
Transport Intelligence has announced that Air Freight is up more than 38% during the first six months of 2010, even while Ocean Freight Forwarding is up a mere 13 percent. Although most would accept any kind of good move in volumes at this point, the actual point that Air Freight reported such significant advances relative to Ocean Cargo leaves the marketplace in a holding pattern when waiting in order to watch if freight distribution can return to a lot more traditional levels. Transport Intelligence believes the increase in all these trends followed by freight carriers and cargo shiplines decision to limit capacity will be certainly putting pressure on shippers and their third party logistics companies to pay greater costs of operations. Transport Intelligence's Report may be found here (http://blog.freightaccess.com/2010/08/annual-global-freight-forwarding-report-2010-from-t-i/).
The Annual Global Freight Forwarding Report written by Transport Intelligence noted an increase in volume for the transportation marketplace felt by freight carriers, which followed a 23 percent drop in 2009 from 2008 shipment volumes. It seems this unpredictability in volume has not been simple to accept for freight forwarders and cargo carriers. Just six months ago a lot of of these third party logistics providers and airlines were concerned about how to sustain operations at trim staff levels and now they are actually slammed with far more freight shipments than they may handle with existing resources.
The freight marketplace is anticipating a balancing time period back to more historical freight volumes as well as absence of such shipment volatility. Most manufacturers have forgone conventional supply chain inventory because of to a range of factors such as absence of accessible company capital. The absence of inventory helps to explain the spike in air freight traffic. It appears that inventories will come back to regular levels throughout the up coming few years. Transportation Intelligence believes it will require until 2013 to be able to come back to pre-2013 levels especially in Europe.
Improved Security of Freight Cargo poses minor problems during first week of enforcement.
This week, the federal regulations requiring 100 percent screening of air cargo moving upon passenger aircraft went into effect. The majority of Freight Forwarders experienced little if any effect, as a lot more than 95 percent report no troubles throughout this first week. A lot more than 709 surveys were sent to the Air Freight Association looking to gain feedback concerning the actual simplicity of integration. Simply five percent of participants noted major complications adhering to the new guidelines, which were not correlated to any particular airline nor any airport.
The transition came at a really excellent period for the air freight marketplace as August is usually a slower month for airlines and freight carriers. The AFA attributes this smooth transition to the educational efforts and preparedness procedures put forth by the AFA, federal government, and numerous freight forwarders to ensure integration has been done properly.
FULL STORY HERE
By Brad Hollister
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