Even though the largest part of international shipping is conducted by sea, more and more shippers are using airliners to transport their goods. The reason? Well, there are a few reasons for it. And shippers and airliners and adapting to the current state on the market. Logistics companies in Bahrain, for example, are ditching sea freight in favor of faster and simpler air freight service. However, the relationship is just evolving and there is still much time before using airliners for transporting cargo becomes more often.
Problems on the sea that started a relationship between shippers and airliners
Ships are still more often used vessels for transporting cargo. However, their popularity is starting to slow them down. The current state in the international shipping industry is that there are just too many ships for this amount of cargo. It is becoming cheaper and cheaper to send something by the sea that the sea freight companies are starting to feel financial issues.
Luckily, logistics companies in Saudi Arabia have managed to stay intact, for now. Partly thanks to the collapse of Hanjin Group.
An example is the collapse of one of the shipping companies that were among the top ten in the world. The well-known South Korean group Hanjin. Governed by debts, they finally broke down in 2016. The reasons were overcapacity, lower freight rates, and constantly rising debt levels. The state of the industry meant that it is just the question of who will go first.
Shippers and airliners know that shipping by air is the fastest way to transport goods
As the sea freight starting to decline, carriers are turning to the more efficient way of transporting goods. Freight forwarding companies in Saudi Arabia, shippers, and airliners have seen the problems, and are creating a new relationship which will affect not only them but the customers too.
The most important advantage of air freight is the speed of the delivery. The things that would need weeks to arrive by sea could be delivered in a matter of days. And that is something that is certainly cheering up customers.
Prices are still on a high side
Of course, the prices are something that is still restraining this relationship to evolve. But things are going in a good direction. As the popularity of air shipping is starting to rise, the prices are easily starting to drop. In a few years, we can hope that air shipping becomes even more affordable.
Different packaging requirements
Of course, another problem that shippers are now facing is different packaging requirements. Things that are going to be transported by air need to be packed safely. Especially if the cargo holds certain objects or chemicals that need special attention when in air. From items that have batteries to simple domestic appliances that have compressed gas. As the rules around transporting items via air are very complex, shippers are just starting to get the grasp of it.