Forwarders Blamed For Air Freight Delays

img

Claims were made at the Air Cargo Handling Conference that was held in Milan that companies have tried to cut as much as 48 hours off of transit times for air freight shipments, but find efforts futile due to forwarders sit on cargo for several days.

David Ambridge, a member of IATA’s Cargo Operations Advisory Group, or COAG, claimed that IATA and COAG within the group has done everything possible to reduce complexity, because it is at the heart of a simple business.

He then continued to say, “We really need to change if we want to be successful; we need to talk to our customers, we need to embrace e-commerce companies like Alibaba, eBay, and Amazon and get some of their cargo onto our planes rather than with the integrators.”

One of the primary reasons that Ambridge detailed about the quicker transit times of integrators was due to integrators pre-cleared over 95% of their shipments. Alos, when later asked by Glyn Hughes, the head of cargo for IATA about what could be done to shave off 48 hours of transit time. Ambridge responded indicating that the most COAG can do at this point in time is to support the vision and better understand the causes of extended times.

Ambridge pointed out that the longest flight was between 16 and 17 hours and cargo handling agents needed about an additional 8 hours for processing at each end of the shipment. Combined the total time required is 24 hours in contrast to the 6 or 7 days that it often takes for an air shipment transit. Ambridge then asked, “So what about the other days?” He then followed up his initial question with another by asking, “Why does cargo get delivered two days before shipment or collected two days after the shipment arrives?”

A delegate from IBS, a technology provider, mentioned that he observed the main reason for this was that freight forwarders were holding on to cargo so that they could be consolidated into a shipment.

One person asked if freight forwarders would be invited into COAG. Ambridge responded that he believes they all know where the problem is and they will be inviting freight forwarding representatives to come to them.

There was at least one person who defended the position of freight forwarders. The individual specified that it is necessary for freight forwarders to do because they need to provide customers with affordable options. If freight forwarders don’t consolidate or hold cargo until a cheaper flight, then costs will go up and shipments will be less affordable. In the end, such a situation isn’t good for anyone.

Do you have an opinion on this? The X2 Elite Team recommends continuing the discussion in our LinkedIn Group.

Member Testimonials

testimonial
X2 always thrives on raising the bar when it comes to connecting people. X2 conferences are one of a kind! As the founding member, we are happy to be in X2 Elite and the X2 Projects Network.
testimonial
"We believe in limiting memberships to a minimum and have found our home for projects as well as general cargo within the X2 family."
testimonial
I've been in the business for over 30 years, I have never had or experienced such and effort by the management team of the network to get members to participate and make their membership work for them.
testimonial
The professionalism and organisation shown from the X2 team totally blew us away.
testimonial
Richard is an innovator, what I find great working with him is that he can see the future.
testimonial
I was positively surprised from the amazing organization and specially the commitment of all X2 Team making this event incredible for everybody and in all complete fields.
testimonial
We have to skip the networks that are founded only for the benefits of the founders Quality and not quantity.
testimonial
We found the best way to build trust is to go to the conference and meet with people, talk to them and get to know them.
testimonial
As a new member of the X2 Network, we are very impressed by the organization and its professionalism and focus on mutual business development. X2 has already given us some great opportunities to work with likeminded partners across the globe on both project and general cargo.
testimonial
Great energy and drive throughout the X2 Team and high profile Network agents to complement each other’s business across the globe and help achieve positive results. Keep up the good work!
testimonial
X2 is like a family! We have met so many amazing partners. There has been so much success with the relationships we have developed throughout the years and most importantly friendships that will last a lifetime. And we love the networks' reach!
testimonial
We have been a member of X2 since 2014 and have attended six conferences. Richard and his passion for the network with his enthusiastic team have arranged all the conferences perfectly considering every single detail. We made many friends and found new global partners to work with at the conferences. X2 is one of the good solutions for our needs and we hereby thank them for their efforts.
testimonial
I have attended a lot of networks and annual meetings in the freight industry, but I have never come across a network like X2. This is another level. It is a pleasure to be a part of the X2 network - the professionalism, the attention to detail, the broad and knowledgeable staff - everything at the highest level.
testimonial
X2 is really an excellent logistics network, with a well-organized team that is always thoughtful and helpful. We are happy with X2 and expect a long journey together.
testimonial
"At X2 Network we found a group of partners that really want to build a long-term relationship. Companies are run by people that really care about your business and success. X2 Team has been really supportive and very active to develop new opportunities for your business''.

Our Partners

X2 Conference

Our special networking event is about smart freight forwarders coming together to grow and develop business within the group by providing an opportunity for all members to gather in one place to form and extend personal relationships.

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
7:53

NEW YORK

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
7:53

sao paulo

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
7:53

london

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
7:53

dubai

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
7:53

bangkok

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
7:53

hong kong

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
7:53

tokyo

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
7:53

sydney