Air transport choice is based on the desire to minimize traveling time and thus achieve total savings and operational benefits from the whole perspective. Unit cost of air freight is the most expensive forms of transportation.
Introduction: Introductory presentation of this section (Google Slides).
There are several typical air transport selection criteria. Urgency can mean, for example, delivery needs, aiming to support life cycle of the product by reaching product’s final market as quickly as possible. Different spare parts deliveries for repair of equipment or to restore operation of the production lines or to secure are also common among air freight. JOT – deliveries (Just in Time) are often headed to various events such as product releases, contests or fairs. Optimization of time often also associates with keeping inventory levels low and restocking with frequent cycles using air cargo (Inventory in Transit /Order Cycle Time Reduction).
Optimization of inventory levels will support company’s investment in speeding-up productivity. Also, procurement globalization in many places extended delivery distances between supplier and customer so the importance of delivery speed and certainty emphasizes. Value, nature and handling requirements of goods from time to time allow the use of air cargo only. In particular, from the perspective of transport safety (crimes against transport and terrorist threats) air cargo provides integrated transport chain with already existing security inspection, operators auditing and operations procedures. Various cold chain -based air cargo solutions are frequently the only option, fresh products for example, to obtain distant markets merchantable. For example, from Nordic countries perspective fresh salmon is one of the most significant air cargo export products.
There is also hard- to-reach destinations, and getting there by other modes of transport than by air transport is either impossible, very challenging or exceptionally expensive (e.g . Inland African destinations). Under certain circumstances, using air freight can also aim to raise the value of a brand or product (hand-made and personalized products). Typical air cargo users are Hi Tech, pharmaceutical, energy, communications, automotive and product goods industries.