Flying Over Supply Chain Hurdles with Air Freight

Summary

Discover how air freight is helping businesses overcome challenges and seize opportunities in a dynamic supply chain environment. Air freight services act as a critical lifeline, ensuring the continuous flow of goods and maintaining business operations, even during disruptions. In this article, we will explore:

• The Need for Speed
• Flexibility and Reliability
• Global Reach
• Mitigating Risks
• The Backbone of Resilient Supply Chains

Flying Over Hurdles of Disruptions

In today's fast-paced and interconnected global economy, disruptions can have severe consequences for the supply chain. Geopolitical tensions and slowing economic growth have created disruptions that demand swift and strategic responses. Businesses are increasingly turning to air freight to enhance agility and tap into new markets. Air freight offers the speed and flexibility needed to move high-value and time-sensitive cargo efficiently, making it an indispensable tool for modern logistics. Air freight solutions offer a critical lifeline to keep goods moving and businesses operational, effectively flying over the hurdles of disruptions.

One of the primary advantages of air freight is its speed. When time-sensitive goods, such as perishable items or medical supplies, need to reach their destinations quickly, air freight provides the fastest transit times. Air freight solutions also offer flexibility and reliability, with fixed schedules and the ability to reroute shipments in response to changing circumstances. This adaptability is essential during supply chain disruptions. Additionally, air freight provides businesses with global reach, connecting regions and facilitating the movement of goods across continents. This extensive network is beneficial for businesses with international customers, ensuring timely deliveries.

Supply chains are the lifeblood that keeps the wheels of commerce turning. However, these intricate networks are not immune to disruptions. From natural disasters and geopolitical tensions to pandemics and labor strikes, various factors can throw supply chains into disarray. This is where air freight solutions come into play, offering a vital resilience lifeline to ensure the continuous flow of goods.

The Need for Speed

Air freight is the most trusted transport mode for speed, with an airport-to-airport transit time of as little as a few days. Due to the nature of air transportation the cargo benefits from a much more direct route than other modes. When supply chains face disruptions, time becomes a critical factor. Traditional sea or land transportation methods, while cost-effective, cannot match the rapid transit times offered by air freight. For example, transporting goods from Asia to Europe by sea can take several weeks, whereas air freight can accomplish the same journey in a matter of days. This expedited delivery is crucial in scenarios where time-sensitive goods, such as perishable items or medical supplies, need to reach their destinations quickly.

Overcoming Logistical Challenges to Feed Millions

Mowi, the world's largest producer of Atlantic salmon, harvested as much 475,000 tonnes of salmon in 2023 and claimed a global market share of approximately 20%. Feeding 8 million tables a day is not without its challenges, and Mowi faced significant logistical challenges in ensuring the timely delivery of their perishable products. By partnering with an integrated logistics provider, Mowi integrated air freight into their supply chain strategy.

Temperature-controlled cargo is among the most sensitive commodities, which is why the requirements of every individual shipment needed to be assessed and adhered to in order to avoid any spoiled produce. For Mowi, cold storage solutions were put in place before being loaded onto the aircraft and immediately at the final destination, while the temperature of the aircraft itself was also optimised for product freshness.

Ensuring the timely and proper delivery of salmon to markets worldwide is crucial to avoid spoilage and maintain profitability. The air freight solution allowed Mowi to reach global markets quickly, all while maintaining product freshness.

Flexibility and Reliability

Air freight solutions offer unparalleled flexibility and reliability. Airlines operate on fixed schedules, ensuring that goods are transported according to a predetermined timeline. This predictability is essential during supply chain disruptions when businesses need to rely on consistent delivery times. Additionally, air freight can be easily rerouted in response to changing circumstances, such as weather-related delays or geopolitical events. This adaptability allows businesses to maintain a steady flow of goods, even in the face of unforeseen challenges.

Overcoming Critical Supply Chain Hurdles

Some businesses use air freight to transport high-value or critical components that cannot afford a long supply journey, especially in biopharma or drug industries where patients and labs need supplies urgently.

The COVID-19 pandemic highlighted the importance of air freight solutions in managing supply chain disruptions. As lockdowns and restrictions were implemented worldwide, traditional transportation methods faced significant challenges. However, air cargo operations continued to function, providing a crucial link in the supply chain. For example, the distribution of personal protective equipment (PPE) and medical supplies relied heavily on air freight to meet urgent demands. Additionally, the rapid development and distribution of COVID-19 vaccines showcased the vital role of air freight in ensuring that these life-saving products reached global populations swiftly and safely.

The pandemic also accelerated the need for e-commerce, as consumers shifted to online shopping due to social distancing measures. Air freight played a pivotal role in supporting this surge, enabling retailers to meet increased demand and maintain customer satisfaction. The agility of air cargo operations allowed businesses to adapt quickly to changing market conditions and consumer behaviors.

In addition to healthcare and e-commerce, air freight was instrumental in maintaining the flow of perishable goods, such as fresh produce and seafood, ensuring food security in many regions. Fears of food shortage and supplies led to panic buying globally, which in effect created a demand-supply imbalance. This is when airlines stepped in with their grounded aircraft to offer cargo-only flights throughout the world by increasing its share of perishable commodities. During the COVID-19 pandemic, air freight emerged as a lifeline for global supply chains, ensuring the continuity of essential services and goods.

Global Reach

Air freight solutions provide businesses with the ability to reach any destination around the world. Major airports serve as global hubs, connecting regions and facilitating the seamless movement of goods across continents. This extensive network is particularly beneficial for businesses with a global customer base, as it ensures that products can be delivered to international markets with minimal delay. Furthermore, air freight allows businesses to tap into emerging markets and expand their reach, driving growth and competitiveness.

Leveraging Air Freight for Market Expansion: Overcoming New Market Hurdles

Cotton On, a prominent Australian fashion retailer, sought to expand its market presence across Africa and the Middle East. The company faced several challenges, including understanding market intelligence, navigating compliance limitations during exports, and planning stock effectively. To achieve its goal of delivering a customer-first approach in these new markets, Cotton On partnered with an integrated logistics provider for comprehensive support.

The integrated logistics provider’s tailored solutions provided Cotton On with the agility to adapt to the South African market and the efficiency needed for their cargo journeys. Key aspects of support included purchase order management, vendor alignment, shipment visibility, international freight movement, customs clearance, and destination trucking. This integrated approach ensured that the right cargo arrived at the right time, with minimal delays.

One of the significant advantages of partnering with an integrated logistics provider was the visibility provided throughout the supply chain. This allowed Cotton On to manage expectations from their merchandising teams and plan upcoming cargo deliveries more effectively. The collaboration enabled Cotton On to establish a strong presence in South Africa, Namibia, Botswana, UAE, and Oman.

The use of air freight allowed Cotton On to maintain a high level of agility and responsiveness, essential for meeting the demands of new markets. This mode of transport provided the speed and reliability needed to manage time-sensitive shipments, ensuring that products reached their destinations without delay. Additionally, air freight helped Cotton On navigate compliance limitations and optimise stock planning, further enhancing their ability to serve customers effectively in these regions.

Mitigating Risks

Building resilient supply chains is a top priority for businesses in today's uncertain environment. Air freight solutions play a key role in enhancing this resilience by offering a reliable and adaptable transportation option. By incorporating air freight into their logistics strategies, businesses can better prepare for and respond to disruptions. This proactive approach helps minimise the impact of supply chain disruptions on operations, ensuring business continuity and customer satisfaction.

Supply chain disruptions often come with significant financial risks. Delayed shipments can lead to lost sales, increased inventory costs, and dissatisfied customers. Air freight solutions help mitigate these risks by offering a reliable and efficient transportation option. By minimising transit times and ensuring timely deliveries, businesses can reduce the impact of disruptions on their operations. Additionally, air freight services often come with robust tracking and monitoring capabilities, allowing businesses to keep a close eye on their shipments and address any issues promptly.

Air Freight Solutions for Overcoming Production Delays

Due to a supplier production delay, a global e-commerce company faced the risk of missing a critical sale day. Traditional ocean freight would have taken 50-60 days, causing significant delays. Air freight alone was not an option either, as it would have resulted in unnecessary warehouse charges due to early arrival. They partnered with an integrated logistics provider that proposed a solution combining air and sea freight, leveraging their air corridor between Europe and Asia and their intra-Asia network.

This integrated approach ensured that the goods arrived just in time for the sale day, saving the company USD 20,000 in freight costs alone. The sea-air solution provided the speed and reliability needed to navigate the disruption, demonstrating how air freight can enhance supply chain resilience by offering adaptable and efficient transportation options.

Air Freight: The Backbone of Resilient Supply Chains

Air freight solutions are indispensable in handling disruptions in supply chains. Their speed, flexibility, and global reach make them a vital component of modern logistics strategies. By leveraging air freight, businesses can mitigate risks, ensure timely deliveries, and enhance the resilience of their supply chains. As the world continues to navigate uncertainties, air freight will remain a critical tool in maintaining the flow of goods and supporting global commerce.

Businesses can work with an integrated logistics provider to transport cargo seamlessly from end to end. Oftentimes, this provider will have its own network to leverage. Or, by taking advantage of an integrated logistics provider’s strong partnerships with global airlines to move goods from its origin to any destination, businesses will soar above the hurdles inherent in modern day supply chains. Benefits to this approach include:

• Increased flexibility: Manage exceptions or disruptions effortlessly with our network of owned assets.
• Enhanced agility: Have better control by slowing down or speeding up your supply chain as per your needs.
• Secure movement: Limit risks of theft or damage with the assurance of best-in-class ground handling protocols.
• More reliability: Get greater lead time transparency with on-time arrival and departure schedules between multiple locations.
• Wider reach: Leverage our vast network to reach more locations and customers globally.
• One-stop shop: Move cargo seamlessly with a single point of contact for all your logistics solutions.

Air transport is very safe, secure and reliable, giving companies greater control over planning and scheduling. By partnering with an integrated logistics provider, companies can take advantage of a controlled air services network and strategic partners to optimize their supply chains. And, integrating with other solutions like ocean shipping brings together truly seamless transportation from end to end.

So, whether it is responding to a sudden spike in demand or overcoming unforeseen challenges, air freight solutions are an essential part of keeping the supply chain robust and reliable.

Be ready for supply chain disruptions to go all the way! Discover more with Maersk Logistics Insights, learn about Air Freight at Maersk, and how to rely on the growing global connectivity of Maersk Air Freight for your business.