What is an Air freight consolidator? Definition and responsibilities and challenges
We all are familiar with how fast and efficient air transport is. Air transport is all about its speed and security measures. These two factors are the facets of air cargo and play a significant role in business transportation. They take work into their own hands to manage these air freight consolidators. Let’s understand in detail how they work for your businesses and what challenges managing freight consolidators have. Also, in the blog post, you will learn about the best practices an air freight consolidator can implement to reduce the burden on the business.
What is an air freight consolidator?
The best definition of an air freight consolidator is a logistics company that specialises in air logistics and air transport management. These air freight consolidators can effectively ship all shipments and goods. They serve as an intermediary between exporters and airlines, reducing their burden. They simplify all the complex tasks involved in the entire shipping process. Working with these consolidators has various advantages: they manage specific responsibilities and increase productivity and efficiency. ShipGlobal.in
Air Freight Consolidators Responsibilities
No matter which freight you are talking about, the critical task of cargo is to take care of the supply chain. Air freight consolidators enhance efficiency by reducing the risk and all the challenges faced during air freight. There are various other benefits of working with an air freight consolidator. Some of them are given below for further reading:
Managing the logistics
When discussing air freight, it’s all about moving forward. Management of logistics is more complicated than the typical process as a whole. We are aware that numerous critical procedures are involved in the transfer of goods and data. Air freight consolidators can create logistics plans that are tailored to your company’s needs based on their expertise. Their insight and skill can implement all the plans effectively. In order to guarantee that your products are always accessible in the event of a need, they manage carrier partnerships, coordinate shipments, and maintain updates about the data of inventory levels.
Documentation
Air freight forwarding vigorously depends on precise documentation and customs clearance for a smooth activity. To overcome these challenges, experienced air freight consolidators are essential. They are able to manage all these customs and documentation effectively. To direct the intricate regulations of various nations and prepare all of the necessary paperwork, including commercial invoices, bills of lading, packing lists, permits, licenses, and certificates.
Risk management
Selecting a dependable carrier is essential for safe and prompt air freight forwarding, but it is only the first step. A seasoned air freight consolidator is essential to reducing risks. Their knowledge allows them to evaluate carriers based on safety records, financial stability, and on-time delivery. In addition, their expertise enables them to negotiate better contracts and rates with carriers, saving their customers money in the long run.
Challenges faced by air freight consolidators
There are various significant challenges associated with air freight. All these challenges involve different types of expertise and knowledge. Air freight consolidators have separate individuals and teams to deal with different problems. Dealing with all these challenges reduces your burden so that you can handle your customers and expand your customer base. Here are a few common challenges faced during any air freight.
Security regarding air freight
In air freight forwarding, ensuring air cargo safety is a top priority, but it comes at a cost. Despite its strength, businesses are required to contribute funds to airport security. Before boarding, during flight, and upon landing, various screening and inspection procedures for cargo are required to provide high levels of security throughout the journey. This necessitates significant investment. Utilising tamper-evident seals, strict employee background checks, and safe facilities and equipment, air freight consolidators further tighten security.
Customs regarding challenges
Air freight consolidators also face various challenges related to customs and regulations. Because of high security, the paperwork and rules are a little tougher than for other freight. Importers and exporters must manage bulky paperwork and comply with changing import and export rules across varied countries. Sometimes, all systems must arrive on time due to proper documentation, which can lead to frustrated customers, shipment hold-ups, and rising costs.
Capacity limit
There are fewer worries about capacity limits in truck freight and rail freight. Air freight has to deal with this problem at a larger pace. So, the most probable protest is the limited aircraft capacity. Airlines focus on passenger space or properly use dedicated cargo aircraft with weight restrictions. Factors like busy or vacation seasons, market ups and downs, and needing more space for flight cargo can create a big challenge. This less capacity problem indirectly raises the cost of air freight.
Compliance
Staying on top of improving regulations is essential. Exporters and importers must realise the latest rules regarding dangerous materials, prohibited goods, proper handling procedures, and other customs requirements to pay attention to further delays or cancellations. Please comply to avoid significant disruptions in the transportation process.
Best practices by air freight consolidators
When you partner up with air consolidators, they provide many innovative and tested ideas to enhance system working and business. Here are some best practices that any air freight consolidators should consider before planning any strategy.
Managing Complexities
Air freight consolidators have extensive knowledge about various efficient ways to manage challenges. Working with a seasoned shipping company can help the company work better and implement the maze of international regulations. They can ensure your shipments adhere to constantly shifting import/export limits and rules, ignoring expenses, delays, and disruptions. Also, make sure you avoid bulk shipments during the vacation season.
Increasing Safety
Air cargo safety is of the utmost importance. Air freight consolidators have the best security measures, but more than their expertise may be needed to implement comprehensive security protocols. These expert consolidators consist of large staff who can predict all the probable risks and take security measures accordingly. Examples include cutting-edge screening equipment and extensive staff training to comprehend and deal with potential security threats like theft and tampering.
Optimising Capacity
Aircraft have enough cargo space, but availability can be further restricted by busy seasons or market ups and downs. The best freight forwarding companies use advanced analytics to predict upcoming demand and utilise the best cargo capacity with air carriers. Businesses can collaborate directly with airlines to secure space and maintain flexible schedules. Air freight consolidators show their strength; they already have good relationships with various airlines. That’s why Air freight consolidators can access preferred scheduling and priority cargo allocation by leveraging established relationships with multiple airlines.
Consistent deliveries
Individual freights ship their orders at different times, and these fluctuations vary frequently. But when it comes to air freight, all goods arrive more consistently. Different air freight may take a little more time to combine, but they will ship quickly because of air transportation.
Customers satisfaction
Exporters need to satisfy all the needs of their customers with their shipments. Air freight consolidators can help you meet your customers’ needs—the efficiency, speed, and expertise achieved with the help of air freight consolidators. When you partner with air freight consolidators, your customers don’t have to wait a longer period for their shipments to arrive. Not only shipments but also the unloading of all the goods takes place faster than usual.
Streamlining Customs Clearance
Air freight faces significant difficulties in clearing customs and other bulky paperwork. All this paperwork leads to a big headache and delays the shipment. Air freight consolidators are adept at successfully implementing this procedure because they are accustomed to dealing with integrated paperwork daily. They know how to perform all the customs clearance accurately. Clearance is based upon solid relationships with customs officials and knowledge of customs duty laws. Many also utilise technologies like Electronic Data Interchange (EDI) to streamline the procedure further.
Conclusion
Various challenges are experienced in air transportation, but all these responsibilities completed by air freight consolidators can reduce the burden. They help your air transportation and overcome multiple obstacles to ship your cargo securely. With their experience, they perform such tasks and utilise the strategies to navigate more efficiently and benefit you. When you are looking to ship products internationally, working with an air freight consolidator is the ideal option.
With such importance placed on the success of global trade, at the Institute of Supply Chain Management (IoSCM), we offer a range of professional qualifications, carefully designed to match modern business’ needs and upskill professionals at all stages of their careers. Call 0800 1422 522 to speak with a member of our Course Advisory team about how we can help you.