In our news articles from mid-December and early February, we already reported on current developments in the global logistics market. As predicted, in recent days and weeks the tense situation in the ocean freight sector has further increased the pressure on scarce air freight capacities. Not an easy situation for freight forwarders. Read below how EgeTrans is dealing with these conditions.
Chicago Express via preighter
Frankfurt (FRA) – Chicago O’Hare (ORD)
Wednesday, March 3, 2021 | Preighter in full charter
Friday, March 5, 2021 | Preighter in full charter
Saturday, March 6, 2021 | Preighter in full charter
Sunday March 7, 2021 | Preighter in full charter
It is rare for a medium-sized freight forwarder to charter four passenger aircraft for airfreight-only transport in a single week. During the week from March 1 to 7, 2021, the Airbus A350 aircraft will take off four times at Frankfurt Airport (FRA) and land a few hours later at Chicago O'Hare (ORD). At least three more so-called "preighters" (a combination of the terms passenger aircraft + freighter) will follow in March. Some of the flights are booked as roundtrips, which means that they will also transport goods for EgeTrans customers on the way back to Frankfurt, thus making the most efficient use of cargo space. Each aircraft of this type has a cargo capacity of up to 110 cubic meters or up to 40 tons.
Preighters in full charter are an important tool in order to flexibly and reliably meet our customers' logistics requirements during these turbulent times. But that is not all. The EgeTrans airfreight department can access additional capacities with the help of various allotments with different airlines.
Allotments are guaranteed capacity agreements, i.e. guaranteed freight space that can be used on defined days of the week. A distinction is made between hard and soft block agreements. In the case of a soft block, the freight space can be booked variably. If you do not wish to use it, no cancellation costs are incurred. In contrast, with a hard block, the announced volume must be delivered. Smaller tonnages of 5 to 10 tons are common for allotments.
In addition to allotments, EgeTrans also continuously checks capacities on the free market. Besides directly with airlines, it is also possible to book freight space via service providers (sales agents). For example, since the beginning of the pandemic, EgeTrans has been involved in a partial charter of a cargo aircraft from Liège (LGG) to Chicago Rockford (RFD).
Facts and figures
The rapid increase in airfreight volume handled by EgeTrans can be clearly seen over the last three weeks. Between week 7 and week 9 the handled tonnage has doubled. In the first two months of this year, an increase in air freight of 370 percent was recorded in terms of chargeable weight compared to the same period in 2020. In terms of cargo volume, we saw an increase of approximately 300 percent. The EgeTrans air freight department has already been able to process nearly 2,000 individual air freight orders this calendar year. That is an average of 250 orders per week.
Flexibility and reliability
Not an easy situation for the 20-person air freight team at EgeTrans. The timely reservation of cargo space is currently a challenge. This circumstance is intensified by the dynamic price development of freight rates. Especially for short-term bookings, the freight price per kilogram has increased significantly. In addition, the processing time involved in handling each individual order is increasing. The latter is primarily reflected in forecast planning and cost calculation. The following questions need to be answered:
What is the customer's demand at what time on which route?
Which booking alternatives can realistically be considered?
Which precarriage makes sense?
It is to be expected that this situation will continue until early summer, as there are still no signs of an easing in the sea freight sector. In addition, there is an upward trend in the economy, which is linked to the new U.S. administration and will therefore also have an impact on the transatlantic routes. Nevertheless: Due to the listed measures and the mix of different airfreight products, EgeTrans is able to offer its customers the usual added value in terms of flexibility and reliability with a professional, functioning setup.
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We also support you and your individual requirements in this tense market situation. Contact us.