When someone receives an air freight quote, it's easy to think they're paying for one thing:

The airplane.

But moving air cargo involves much more than the flight itself.

Aircraft.

Pilots.

Fuel.

Maintenance.

Airport handling.

Cargo facilities.

Warehousing.

Security.

Ground transportation.

And the people coordinating all of it.

A FreightWaves report published August 20 provides a good example of how one part of that system can affect transportation costs. Cargojet expects to pass higher pilot labor expenses associated with a new contract on to customers, while also relying on greater pilot utilization and customer rates to absorb the additional expense. 

It's one company and one cost increase.

But it illustrates something important about air logistics:

The price of moving freight is influenced by everything required to keep that freight moving.

The Flight Is Only One Part of the Journey

Suppose a shipment travels from Los Angeles to New York by air.

The aircraft lands at JFK.

From the customer's perspective, the shipment has arrived in New York.

From a logistics perspective, there's still work to do.

The freight may need to be unloaded.

Processed.

Released.

Recovered from an airline or CFS.

Loaded onto a truck.

Transported away from the airport.

And delivered to the consignee.

Every one of those steps involves equipment, labor and time.

That's why the cost of air freight can't be understood simply by looking at the number of miles the aircraft traveled.

Labor Is Part of Logistics

Cargo doesn't move itself.

Pilots fly the aircraft.

Ground crews handle freight.

Warehouse employees process cargo.

Drivers recover it.

Dispatchers coordinate transportation.

Customer-service teams communicate updates.

And specialized shipments may require additional handling.

Cargojet's current pilot contract is a particularly visible example because increased labor costs are significant enough that the carrier expects customers to absorb part of them. 

But labor expenses exist throughout the logistics chain.

Equipment Matters Too

Air cargo can require an enormous amount of specialized equipment.

Aircraft themselves are extraordinarily expensive to purchase, lease, maintain and operate.

Then there is the equipment on the ground.

Cargo loaders.

Forklifts.

ULD equipment.

Tractor-trailers.

Straight trucks.

Cargo vans.

Warehouse equipment.

Different shipments require different resources.

A small urgent package and several pallets of freight shouldn't necessarily be handled the same way.

Choosing appropriate equipment can help keep the shipment moving efficiently.

Urgency Has a Price

There's another major factor:

Time.

If a shipment can arrive sometime next week, logistics providers have flexibility.

If it needs to arrive tomorrow morning, the options become narrower.

And if it needs to move immediately?

Everything changes.

Equipment may need to be dedicated.

A driver may need to be dispatched immediately.

A direct delivery may be required instead of combining freight.

Waiting for the next scheduled movement might not be possible.

That's one reason expedited transportation costs more than ordinary transportation.

The customer isn't simply paying for distance.

They're paying to remove time from the process.

Waiting Time Is Still Time

One of the frustrating realities of airport freight is that schedules don't always line up perfectly.

A driver can arrive at a cargo facility and still wait for freight to become available.

Documentation may not be complete.

Cargo may still be processed.

A release may be pending.

The facility may be congested.

The truck isn't moving during that period.

But the driver, equipment and time are still committed to the shipment.

That's why communication before an airport recovery is so important.

Knowing when freight is actually available can help prevent unnecessary delays and costs.

The Final Miles Can Be Some of the Most Important

Imagine paying to move a time-sensitive shipment thousands of miles by air only to let it sit at the airport after arrival.

That defeats much of the purpose of air freight.

Ground transportation needs to complement the speed of the aircraft.

That's particularly important for freight involving manufacturing, technology, medical products, replacement components or other time-sensitive materials.

The air portion may get the shipment across the country.

The truck gets it through the final miles.

Price and Value Aren't Always the Same Thing

Transportation customers understandably compare rates.

They should.

But the lowest price and the best value aren't always identical.

What happens when the aircraft is delayed?

What happens when cargo isn't released?

Can the provider adjust the pickup?

Can someone be reached?

Is the correct equipment being dispatched?

Will the customer know when the freight has been recovered?

Those capabilities have value too.

Every Shipment Has Its Own Equation

There isn't one universal formula for air freight.

A shipment's cost can depend on:

Weight and dimensions.

Origin and destination.

Aircraft capacity.

Fuel.

Labor.

Handling requirements.

Urgency.

Ground equipment.

Airport or CFS requirements.

Waiting time.

Final-mile distance.

And dozens of other variables.

That's why logistics isn't simply about finding the lowest number.

It's about finding the right solution.

At Air Land Delivery Solutions, our role is to help connect the air and ground portions of that journey.

Airport recovery.

CFS coordination.

Ground transportation.

Expedited service.

Final delivery.

Because once an aircraft lands, the clock doesn't stop.

Air Land Delivery Solutions — On Time. Every Time.