To avoid peak season meltdown, logistics providers and air cargo carriers must meet the challenges this time of year brings.
Attacks on cargo ships in the Red Sea have caused maritime transport delays, diversions and sharply rising costs this year, and that’s having an impact on air cargo too, heightening demand.
E-commerce retailers with international customers should act now to beat the rush and secure the best prices.
More demand and less capacity in the airfreight market this ‘Golden Quarter’ could cause headaches, particularly for companies hoping to move shipments out of Asia Pacific.
Not only could Black Friday and Cyber Monday inventory be held up on the way to retail stores and e-commerce warehouses, but brands selling online to overseas customers could see their parcel deliveries jeopardised if space in aircraft holds becomes scarce, and prices jump prohibitively high.
Demand in June, measured in chargeable weight, was up 13% year on year, continuing the upward trend seen throughout the first half of 2024.
In contrast, air cargo supply grew at its slowest pace in 2024, edging up only 3% year on year, Xeneta has reported.
Plan early for overseas peak parcel delivery
For the retailers’ logistics partners, it pays to adopt a proactive approach that involves the early arrangement of bulk service agreements. More than a mere transaction, these agreements lay the foundation for a powerful partnership based on transparency, shared objectives, and meticulous preparation.
For the best outcomes, it’s essential for retail and brand clients to share forecasts and marketing strategies in late summer to early autumn so that 3PLs can tailor to their seasonal needs.
We produce a tailor-made “peak pack” for each client, ensuring strategic alignment that not only smooths operations but also provides a competitive edge in an unpredictable market.
As airfreight rates are expected to surge even more than usual in the second half of the year, securing the best carrier rates becomes a priority for retailers.
It’s advisable for retailers to work with logistics partners capable of bulk-booking early. This not only optimises costs but ensures timely airfreight, meeting the high demand for swift cross-border e-commerce parcel deliveries during the festive season.
Be flexible and data-driven
Flexibility should underpin a 3PL’s peak international shipping strategy. When parcels are destined for inland delivery, being flexible about the airport of discharge opens more options.
For example, Asendia partners with airlines flying into Atlanta, Dallas, New York, and Chicago giving us cost and contingency options.
While some routes might result in a slightly longer transit time, the increased flexibility allows for better decision-making in selecting the most efficient delivery lane.
This approach ensures adaptability and could mean parcels reach their destination in time for Christmas, despite supply chain blocks.
Understanding demand patterns and market trends is crucial for successful peak-season logistics.
We encourage our retail clients to share historical data and market insights, laying the groundwork for meticulous data analysis.
By employing advanced analytics tools, it’s possible to identify patterns, seasonal fluctuations, and emerging consumer preferences. This data-driven approach allows for the creation of accurate forecasts, enabling businesses to anticipate peak periods with more and more precision.
This foresight not only facilitates better resource allocation by the retailer, it also ensures that the 3PL’s warehouse operations and negotiations with air cargo suppliers are aligned with the anticipated surge in demand.
Real-time visibility
While forecasting sets the stage for peak season preparedness, real-time monitoring is crucial for addressing unforeseen challenges once peak is in full swing.
Proactive 3PLs will support retailers with advanced tracking systems that offer real-time visibility into the cross-border supply chain. This allows for the swift identification of potential disruptions, such as transit delays, strike action, customs clearance issues, or unexpected demand spikes. The ability to resolve issues as they arise ensures a proactive response, minimising delivery delays.
Early planning is the linchpin of successful e-commerce operations during the holiday season. By understanding the dynamics of air freighting and establishing strategic partnerships, retailers can avoid the last-minute scramble and the associated stress.
It’s heartening that so many airlines are investing in their cargo operations, opening new destinations, innovating around rates, and making parcel shipping by air ever more efficient and professional.
Shoppers put immense thought and care into selecting the perfect gifts, and nothing tarnishes the festive spirit more than a delayed or missing parcel.
By preparing ahead with their 3PLs and airfreight partners, retailers can ensure they deliver joy and satisfaction to their overseas customers, making the holiday season a memorable and successful one for all parties involved.
Marie Barrance is Sales Director at Asendia UK, which provides parcel solutions and mail services to leading e-commerce brands, reaching over 200 destinations via Asendia’s network of road and air partners.
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