AirCargoGroup is excited to announce a significant shift in our strategy to enhance our service offerings by advertising our airfreight consolidations on WebCargo by Freightos. This move aims to rejuvenate the concept of consolidation, a practice that had seen a decline in favour of back-to-back shipments due to its simplicity and perceived cost-effectiveness. However, as the market dynamics evolve, the advantages of consolidations are becoming increasingly relevant again.
The changing landscape of airfreight
As Kim Ekstroem, COO of Shipco Transport & Deputy Chairman of AirCargoGroup, highlighted, the airfreight industry has undergone substantial changes in recent years. The rise of global resource centres, particularly in regions like India, has led to an influx of rate requests, often arriving during off-peak hours. This increase in rate requests is creating a more competitive environment where multiple bids for the same shipment are commonplace. It is essential that our most competitive rates are available when our customers need them, hence the importance of publishing consolidating rates on our rate portal – available 24/7.
In this highly competitive landscape, airfreight rates are being driven down, making it essential for companies to find ways to offer more cost-effective solutions. Stefano Robbiati, CEO of New Charter and Director of AirCargoGroup, emphasises that consolidation is emerging as a viable answer to this challenge. By combining multiple shipments into a single consignment, consolidations can offer lower rates that are increasingly attractive to customers.
Overcoming trust issues
Christian Koeppel, European Director SACO Germany & Director of AirCargoGroup, adds: “One of the historical challenges with consolidations has been the trust factor, especially in routes to destinations like Delhi and Mumbai. Customers have often preferred back-to-back shipping due to concerns about reliability and the potential for delays. However, AirCargoGroup is actively working to change this narrative.”
By leveraging our extensive network and expertise, we are building a more trustworthy and efficient consolidation process, notes Leslie Chung, Manager at Shipco Transport & Director of AirCargoGroup. Our aim is to demonstrate that consolidations can be as reliable as back-to-back shipments while offering significant cost savings. This renewed focus on consolidations will not only help our customers save money but also enable them to compete more effectively in the market.
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The airfreight paradox
Every week we send hundreds of ocean LCL shipments into India says Shipco’s Kim Ekstroem. Our partner TeamGlobal will do the break bulk and release the shipment to the receiving agent. Nobody doubts our neutrality or integrity. But when it comes to airfreight it is different. Despite the fact that it is the same Shipco and TeamGlobal that arranges transport and the break bulk, it is only recently we have seen freight forwarders embracing consolidating in lieu of back-to-back.
WebCargo by Freightos
Advertising our consolidations on WebCargo by Freightos is a crucial part of this strategy, explains Jacob Pretorius, General Manager SACO CFR South Africa & Director of AirCargoGroup. By making our consolidation services more visible and accessible, we provide our customers with easy access to competitive rates and reliable shipping options. WebCargo by Freightos’s platform allows us to showcase the space we have available, making it simpler for customers to book and benefit from our consolidations.
READ: CONSOLIDATING THE CARGO INDUSTRY IN A POST-COVID LANDSCAPE
Future prospects
Damian McCluskey, Director of Simply Cargo UK & Chairman of AirCargoGroup says that as the air freight market becomes increasingly transparent and dynamic, the need for robust and competitive shipping solutions is more critical than ever. Consolidations offer a pathway to lower rates and more efficient shipping, especially for mid-sized and smaller companies that might struggle to compete on price alone.
AirCargoGroup is committed to leading this resurgence in consolidation, ensuring that our customers can take full advantage of this cost-effective shipping method. By doing so, we not only enhance our service offerings but also secure our position in the market as a provider of innovative and reliable airfreight solutions.
We invite our partners and customers to explore the benefits of our consolidations on WebCargo by Freightos and join us in embracing this strategic shift. Together, we can navigate the evolving landscape of airfreight and achieve greater success through smarter, more efficient shipping practices.
