Key findings: Air freight services
Granular insights into market drivers that are impacting the air freight rates in different regions are offered in this air freight services market research report. This report highlights the leading air freight companies that are known to add value to the buyer’s supply chain while actionable category management insights will aid buyers to achieve cost-effective procurement.
With more organizations reaching the global corridors, there has been a stark hike in the frequency of cross-border trade, particularly for the automobile sector. This is fueling the demand for air freight services to a significant extent. Air freight services are being extensively being leveraged by the pharmaceutical industry who are focusing on curbing their inventories and inventory holding cost. This will accelerate the category spend momentum during the forecast period. However, the air freight rates in this market are highly dynamic as they are being frequently hiked by the air freight companies when the demand growth is higher than the supply.
For more information on the exact year-over-year spend growth rate, and to know about the pricing strategies to procure at the best air freight rates, download a free report sample.
Written from the perspective of the buyers and suppliers, this air freight services market research report from our logistics, warehousing and transportation portfolio, offers comprehensive coverage of the factors driving spend across various regions and helps buyers to devise pricing strategies to identify opportunities for cost savings. To help buyers procure services at cost-effective air freight rates, an analysis of the pricing outlook and the supplier cost structure is also offered in this report.
Insights offered in this air freight services market research report will help the buyers understand:
- Global spend potential for a period of 2018-2023
- Top air freight companies and supplier cost breakup
- Category management objectives
- Supply chain margins and key cost drivers
Analyze the global category spend for air freight services
The air freight services market attributes its impressive spend growth rate to the exponential growth of the e-commerce industry on a global scale. It is predicted that global e-commerce sales will touch an impressive figure of around USD 5trillion by 2021. This will create substantial demand for air freight services because of the convenience of cross-border shopping that the e-commerce industry offers.
To access the annual market size data for the global category spend, download a free sample copy.
This air freight services market research report offers coverage of:
- Regional and global spend opportunities
- Spend dynamics on a global and regional level
- Category spend and spend growth potential
Optimize category spend for air freight services
Considering the extremely dynamic air freight rates, buyers are advised to collaborate with the air freight companies to a rating metric that encompasses all the factors related to additional costs/surcharges. The parameters that must be considered in this metric are fuel adjustment factors, airport tax, landing fees, and customs duties to provide an estimate of overall surcharges. This will offer buyers visibility on avenues to save significant costs.
This air freight services sourcing and procurement report also covers:
- Pricing strategies to identify cost-saving opportunities
- Supply chain margins
- Technology-facilitated procurement metrics
- Supply market competitiveness and factors influencing buyer power
Assess category spend for the US region
Most of the air freight companies in the US are increasing their fleet to compensate for the limited cargo capacity of the aircraft. The automotive industry in the US practices cross-border to source the vehicle components from low-cost countries. These factors are influencing the category spend growth rate to a significant extent in the US.
Additional information offered in this air freight services sourcing and procurement report will help buyers analyze:
- Category pricing strategies in the US
- Top air freight companies in the US
- Margins of suppliers and category cost drivers
Build strategies for effective supplier selection
It is recommended that buyers partner with air freight companies that bundle integrated customs services along with air freight services. This will aid the buyers in addressing any risks that might occur because of the involvement with third-party customs brokers that can cause delays in deliveries.
This air freight services market research report identifies the major costs incurred by suppliers and provides additional information on:
- Key supplier selection criteria
- Service level agreements and supplier market ecosystem
- Total cost of ownership and category risks
Devise effective category management strategies for air freight services
Category managers can maximize their cost-savings in this market by opting for reusable packaging and seeking free packaging from the service providers. Engaging with industry-specific carriers for special handling requirements will also boost the negotiation power of buyers over the air freight rates.
Key insights offered in this air freight services market research report will help the buyers identify:
- Category risks and strategies to mitigate them
- Major supplier and buyer KPIs
- Threat of new substitutes and availability of new suppliers
Design strategies based on regional spend data
The ongoing political unrest over Brexit has led to a stark decline in the exports from pharmaceuticals, automotive, and meat industries in Europe. This is impeding the growth of the air freight services market in the region. South America is expected to witness a greater number of exports and imports of commodities such as flowers, pharmaceuticals, and fruits which will create substantial demand for air freight services. Prevalence of free trade agreements and PCI of end-consumers in APAC will increase category demand from end-user sectors such as pharmaceuticals, automotive, and consumer goods.
To estimate the regional spend potential, this air freight services market research report considers geographies such as:
- North America
- South America
Information on the top air freight companies, pricing strategies to procure at the best air freight rates in different regions, and insights into category management objectives aligned with the market are offered in this market intelligence report. Download a free sample to access the report’s complete scope of coverage.
Key Features of Report
Procurement Best Practices
Cost Saving Opportunities
Supplier Capability Matrix
Air Freight Services - Category Spend Analysis
According to SpendEdge analysts, one of the key growth contributors for global air freight services market is the technological innovations such as e-freight coupled with the high growth potential of e-commerce industry that has a significant level of requirement for all freight services.
Air Freight Services – Procurement Best Practices
Buyers must engage with suppliers that offer a comprehensive portfolio of industry solutions. They should partner with air freight companies that have a wide range of industry solutions that facilitate the transportation of different types of shipments.
Air Freight Services - Procurement Challenges
Based on the analysis in this report, a major procurement pain point experienced by the buyers is the tedious documentation to process shipments. SpendEdge’s procurement specialists predict that the buyers must engage with suppliers that have expertise in the documentation process involved to counter this specific procurement pain point.