Air benefits from cash-flow crunch
are prompting some manufacturers of high-value finished products to switch from
sea to air on AsiaEurope routes.
have done the maths and decided that air is cheaper overall, despite the higher
suppliers to choose between delaying goods and consolidating them in FCL [full
container load] ocean shipments, using LCL [less than container load] services
or paying a premium for air.
Hong Kong to Europe for “decent-sized accounts”, the modal tipping point between
LCL and air had shifted for some shipments, with the need to speed payments adding
urgency to the equation.
a shipment might take six weeks, ” said Karel van de Pijpekamp, sales and marketing
director for TNT Express Asia.
viable, because it reduced capital requirements, removed the need for warehousing
and reduced operating expenses, even though transport costs may be higher.
in the computing sector, he said.
because they didn’t want to be stuck with inventory, ” he added.
Black Sea and Africa region, agreed that smaller purchase orders could see more
high-value cargo shippers gravitate from sea to air, rather than using LCL options,
as they sought to free-up capital and reduce stock levels.
months, but now the purchasing patterns, involving smaller lots more suited to
air freight, may lead to a rebound for air freight, he added.
of sea freight to air freight for these reasons, but overall volumes for both
modes remained down, year-on-year.
could save US$45m by moving cargo via TNT’s Integrated Direct Express air freight
service instead of sea because of the pipeline inventory cost savings.
in sea transportation costs, he said.
at current freight rates, but cut the pipeline inventory costs by $90m to just
not builtto-stock, he added.
with low inventories in rapidly changing industries such as electronics, fashion
and footwear could also now find it equally cost-efficient to use pure air freight,
Lundgren told IFW.
of damages and claims, lower insurance costs and increased flexibility to meet
changing customer demands.