Air shipments are growing. How concerned should retailers be about Air Cargo safety?

November 3rd, 2010

How concerned should retailers be about Air Cargo safety as shipments and volumes increase with the holidays on the way?

There are many areas that effect air cargo prices that can effect demand for and the use of this service and there are literally hundreds of airlines that participate. Examples might be issues such as the ash plumes from Iceland to the cost of jet fuel. With the recent concerns relative to air cargo security driven by the events in Yemen it is critically important not only that governments be concerned about the safe shipment of cargo to the  U.S.; but that U.S. companies importing these good also be concerned once the products have crossed our borders and entered the ground stage of their delivery cycle. The more products that are shipped the larger the problem for governments and  retail companies.

Air cargo volumes are growing rapidly. According to an article in Reuters the International Air Transport Association or the IATA says that the United States, for instance, shipped around 30 percent of its exports by value using air transport from January to March, IATA estimated. According to another article in Business Insider by Vincent Fernando, CFA titled Hong Kong Air Cargo Volume Exploding towards Record Highs. The article goes on to say that someone forget to tell Hong Kong the global economy was in trouble. Air Cargo volume is surging for the trade hub, up 47% year over year, and at the highest level in two and a half years.

Employees, consumers want to know that they are safe. As such it is critical that companies work together to develop a process that insures check and balances are in place from the site of original shipment to final store or consumer delivery.

We look forward to and appreciate your comments

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