If you work in logistics, you’re managing cost, efficiency, and speed with every shipment. Every time you choose a shipping mode, you’re making a compromise among these three attributes. Air freight is usually the fastest option, but it’s also the most expensive.
Despite the price, air transportation is the best choice for certain shipments. It’s an essential element in supply chains involving time-sensitive, fragile, or perishable items. No other mode can match the flexibility, speed, and security of air freight, and logistics organizations are taking steps to make it even more efficient than it is already.
On February 18, 2020, The International Air Transport Association (IATA) and the International Post Corporation (IPC) signed a memorandum of understanding outlining their new cooperative efforts to improve the efficiency of air freight and airmail, agreeing to work together toward these six goals:
1. Developing Industry Standards
Different carriers use their own solutions for managing both the physical and electronic procedures involved in air freight. Developing industrywide standards will improve efficiency when multiple carriers are involved.
2. Implementing Piece Level Tracking
The air freight industry is moving to implement technology-based standards to improve piece level tracking, which allows shipments to be tracked at a low level of consolidation (before they’re grouped into pallets or unit load devices).
3. Improving Efficiency for Small Packages
Small packages are sometimes much less efficient to ship than large packages from a shipper’s point of view. Improved navigation and booking procedures are intended to close this efficiency gap.
4. Improving Security
Security is one of the major selling points of air freight, but there is always room for improvement. Together, the IATA and the IPC are working to make security even better with improved procedures for the handover, carriage, delivery, and settlement of air cargo.
5. Including New Partners
There aren’t that many successful carriers in the air freight industry, and it’s difficult for a startup to attain success. Efforts to improve optimization and standardization across the industry will include new partners and encourage healthy competition.
6. Soliciting Industry Feedback
To date, the IATA and the IPC have operated with limited input from the carriers they serve. Now, they are soliciting additional feedback from ground handlers and other industry stakeholders.
Air freight will always be an essential part of logistics, and because the industry is working to improve efficiency, security, and speed for all stakeholders, it will remain a crucial mode of transportation for decades to come.