[DETROIT, Michigan– AUGUST , 2021]
Cavalry Logistics has been operating as a Customs Broker and Freight Forwarder for over Thirty Years. We are experts in International Trade. Below are a few updates from the industry.
Air Shipping Solutions
With constraints at nearly every point in the shipment life cycle and ocean rates steadily climbing, more organizations are considering air freight a viable solution to counteract the significant delays and record high freight costs associated with ocean container shipping. While still much higher than pre-pandemic rates, shipping via air is gradually becoming a more reasonable solution for those looking to work around the ongoing equipment shortages, space shortages and spikes in container transit times. Maintaining inventory has evolved into a large issue for many manufacturers and retailers and as a result, the variety of commodities shipped via air is growing as ports and vessels remain congested and overbooked.
Reopening economies and loosening border restrictions will allow airlines to begin offering increased capacity for cargo and at the same time will drive them towards more competitive pricing. While this may see some drawback as passenger flights returns to normal over time and cargo capacity on passenger planes follows, manufacturers, distributors and retailers may see this as an opportune time to replenish much needed inventory or as a solution for lead time reduction. Reach out to Cavalry to see what your options are. Cavalry is an expert in finding creative cost effective solutions to logistics problems.
|FACTOR||Air Freight||Sea Freight|
|Distance||Air freight is most preferred for a direct city-to-city transport and on the most direct routes between countries.||Sea freight is preferred for shipments that need to travel great distances spanning vast oceans.|
|Type of Cargo||Due to capacity, weight, and safety factors, air freight is somewhat limited in the type of cargo it can carry. Air freight is used mostly in the transport of unitized cargoes. There are, of course, exceptions where entire flights are chartered to carry cargo for a single project.||This is probably where sea freight has an absolute advantage over air freight as you are able to carry any type of goods in containers.|
|Time||This mode is chosen mostly due to its quick transit time and its usually reliable scheduled arrival and departure times. Even if it involves a few transshipments, an air freight shipment will arrive at the destination way ahead of a sea freight shipment, and with the large network offering and alliances, and with the large network offering and alliances, air freight helps shippers to export or import their cargo to anywhere in the world.||Normaly shipping times are around a month depending on where you are shipping from. With the hard ships that the logistics industry is facing we are seeing transit time double if not triple in some cases.|
|Cost||An air freight shipment is considerably more expensive than the same volume of sea freight cargo. This is mainly due to the capacity available on a plane, the higher fuel consumption, and operational costs of a plane.||Due to the volume of cargo a ship can carry at once, as compared to an aircraft, the freight cost by sea freight is much cheaper than air. As ocean rates continue to climb the gap in costs between ocean and air is slowing diminishing.|
|Cargo Safety||Air cargo involves minimal handling. Minimal handling means there is little risk of cargo getting damaged and a higher chance of reaching its destination safely.||While freight containers are a safe way of transporting goods, if the cargo inside the container is not packed properly, there is a big possibility of cargo damage|
|Accessibility||As air freight volumes are considerably smaller than sea freight and handled quicker, there may not be as much congestion at the airports as compared to the long queues at the sea ports.||Due to the sheer volume of containers shipped in and out, there could be periods of severe congestion in sea ports, which brings with it its own problems of additional costs like Detention and demurrage.|
Important Topics Happening Right Now!
- Government of Canada announces easing of border measures for fully vaccinated travelers – Starting August 9th, 2021, Canada will allow fully vaccinated Americans and permanent residents to enter for non-essential travel. On September 7th, 2021, provided that the domestic epidemiologic situation remains favorable, the government intends to open the country’s borders to fully vaccinated travelers from any country that meet entry requirements.
- B.C. wildfires cause Canadian intermodal traffic backlog – A halting of CN and CP rail services caused by wildfires in western Canada delays both container import and export throughout the country. At a time of already unprecedented container traffic, the port of Vancouver is experiencing additional congestion and delays.
- Intermodal transport to change through combination of major railways – Canadian National Railway and the Kansas City Southern Railway Company (KCS) will merge into one premier railway, creating an express route to connect the U.S., Mexico, and Canada. Existing gateways will be preserved, and customers will enjoy faster, more direct routes and new shipping opportunities. KCS shareholders are set to vote on the merger next month.
- Tips on creating your Export Compliance Program. A necessity for all exporters.
- FMC is assessing if Container lines are taking advantage during this extreme shipping environment. Can anything be done to help with shipping costs?
Get in touch with us!
4444 Wyoming Ave. Detroit, Michigan 48216 | Phone: 313-965-8299 | Fax: 313-965-7399
For more information on Cavalry Logistics International, please visit www.shipwithU.com/international.
For more information on Universal Logistics Holdings, Inc., visit www.universallogistics.com.