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Cargo owners consider airfreight alternative to Red Sea shipping delays

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Air cargo has been in the dumps, but could be a beneficiary of the effective closure of the Red Sea shipping lane. (www.freightwaves.com) More...

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ColinSeftel
Colin Seftel 9
Although airfreight is obviously more expensive than sea freight, there are many offsets:
- Shorter lead-time means that importers cash-to-cash cycle times are shorter.
- Shorter lead-time means that there is less average inventory in transit.
- Shorter lead-time facilitates more accurate sales forecasting, reducing the need for safety buffers without impacting customer service.
- Smaller minimum shipping quantity permits more frequent, smaller shipments, which reduces average inventory and reduces the impact of a single shipment delay.
- Aircraft can reach inland destinations, ships can't.
ekulisch
Eric Kulisch 2
Good points.
eichmat
Tim Eichman 2
#1 Less chance someone's going to blow up or steel your product while in transit...
lynx318
lynx318 1
Is airfreight going to be that more expensive? With the ships diverting around Africa, they are already far more expensive than normal. Air becomes more viable proposition.

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