Adapting Logistics Strategies Amid COVID-19

Similar to how the events of 9/11 impacted the air freight industry, the coronavirus pandemic has created a watershed moment that will likely change the way we ship cargo. The shift comes from the dramatic reduction of commercial airline flights practically overnight. Human travel came to a halt in an effort to prevent the spread of COVID-19. Businesses moved their meetings online and leisure travelers canceled vacations. As the pandemic drags on, experts are unsure of when the volume of commercial flights will return to normal… if it does at all.

This creates a major disruption in the logistics industry as 50% of the world’s cargo is transported in the belly of commercial airliners. With significantly reduced capacity for transporting air freight pricing has soared creating major challenges for shippers.

The long-term effects to the air freight industry are forcing shippers to try new logistics strategies. Shippers are turning to Fast-Boat services and combining air and ground freight services to meet the challenges brought on by COVID-19.

 

Combining Air and Ground Freight Delivers Where Charter Flights Do Not

Multimodal transport using air and ground freight

The coronavirus pandemic caused passenger flights to drop 95% worldwide leading to a severe strain on the air transportation industry. This resulted in significant delays in air cargo shipments as shippers scrambled to secure limited flights for their cargo. Charter flights are trying to meet the demand, but these flights typically move between major trading hubs.

Reduced passenger flights to small and medium-sized cities now impact how goods reach those areas. Air flights that used to deliver products to those locations may not be viable anymore. Similarly, restricted international air travel has put a halt to the summer tourist season. Air freight that relied on increased air travel to several summer destinations will be down dramatically this year. This means air freight to these locations becomes almost obsolete.

Shippers need new logistics strategies to reach those destinations and turning to multimodal transportation is a logical solution. By using both air and ground freight you can ship cargo first by air to a nearby major city and then the rest of the way by truck. With only a single bill of lading to keep track of, a multimodal approach is convenient and delivers where you need it most.

 

Fast-Boat Shipping Services Combat High Air Freight Rates

Fast-Boat shipping offers a speed and cost-efficiency logistics strategies

The massive reduction in cargo flights has led to a steep increase in air freight rates. As stated earlier on, nearly half of air cargo was moved through passenger jets that have been grounded due to the COVID-19 pandemic.

Air freight companies have high demand and limited capacity restricting air freight options. Logically, the prices have gone up with so much competition for the limited cargo space.

Air freight rates have soared over the past few months and are fluctuating dramatically day-to-day. This creates an incredible obstacle for businesses that are seeing increased overhead costs due to inflated shipping rates. For businesses already impacted by the pandemic, this is a real problem.

Fast-Boat shipping services is a logistics strategy that offers the perfect solution by combining cost efficiency and speed. A shipment from China to the US using Mach 1 Global’s China Select Solution requires only a few days more than deferred air freight, yet costs 65-80% less. Once your shipment arrives at the Los Angeles port, it is transported to its destination by truck. With Fast-Boat shipping services from Germany, Mexico and China, Mach 1 Global Services offer a viable alternative for importers around the world.

 

Mach 1 Global Services Provides New Logistics Strategies When You Need Them

As a freight forwarder, Mach 1 Global Services can help you organize new logistics strategies by assessing your supply chain and arranging the entire process of transporting your cargo from point A to point B. We can find the best logistics solution that meets your timeline and shipping budget, while making the entire process effortless on your part. To learn more about how we can update your logistics strategy in response to COVID-19, visit our transportation services page. To discuss how Mach 1 Global can assist you call (800) 553-7774 or get a quote by clicking HERE.

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