Air Freight Procurement Intelligence Report 2025-2030

Air Freight Demand Overview

The Asia-Pacific region has the largest market share, mainly boosted by export activities from China, Japan, and South Korea. According to the air freight procurement report, technological developments in following cargo, automated logistics, and advanced aircraft design improve operational efficiency and capacity of air freight services further. Market research for procurement professionals plays a crucial role in identifying growth opportunities. In fact, an approach in taking on eco-friendly initiatives like sustainable aviation fuels and carbon-neutral operations is changing the face of industry in the long run.

Air Freight Cost Structure

Various key components have an effect on overall operational expenses, thus influencing the structure of the air freight market's cost. The largest cost component is fuel, and fluctuations in global oil prices significantly impact freight rates and profitability. Handling and landing can vary greatly and includes ground handling, cargo management, and airport fees. The air freight procurement report provides insights into cost drivers and efficiency strategies. It depends on the location and complexity of the operations. The costs of labor will vary based on regions with available workforces and the prevalent rates of remuneration paid to pilots, cargo handlers, and administrative personnel.

Depreciation, for wear and tear on aircraft and equipment, represents another key part of long-term cost management. As per the air freight procurement report, operating expenses further consist of, though not in an exhaustive manner, insurance and licensing fees that reflect increased burden through strictness of sustainability regulation compliance. Procurement best practices help optimize operational expenditures. There are costs of trucks and truck handling in last-mile delivery, fuel, and wages of drivers that must be taken care of. The air freight procurement market report also highlights that maintenance and repair expenses ensure safety and reliability in aircraft and equipment and minimize the time spent waiting, thus ensuring efficiency.

Air Freight Pricing Trends

The air freight prices are determined by the world-wide economic situation, fuel price volatilities and supply-demand equilibrium. During holiday seasons, demand increases and leads to an upward trend in the freight rates. Labor and infrastructural costs contribute to further elevating the cost. Pricing strategies play a key role in mitigating cost fluctuations. However, route optimization, larger aircraft sizes, and a few other initiatives are offsetting the rising trends. Sustainability trends, such as greener fuels, also push prices up. The air freight procurement report details these pricing trends and their implications.

Air Freight Procurement Best Practices

Procurement of the air freight market includes the acquisition of cost-effective, reliable logistics solutions. As per the air freight procurement report, the above can be assured through long-term contracts with airlines and providers. Diversification among suppliers brings in the risk of disruption. Cost modeling is a crucial tool in managing procurement expenditures. Most businesses are beginning to focus on green logistics to help achieve their goals on sustainability. There are a number of digital procurement solutions that help track shipments, supplier performance, and demand forecasting.

Collaborative partnerships with freight forwarders improve efficiency and service quality, including competitive and sustainable supply chains. The air freight procurement report offers insights into strategic purchasing strategies. Effective negotiation strategies with logistics providers help businesses secure competitive pricing. The growing role of procurement research ensures companies stay ahead of industry changes while optimizing supply chain operations.

Key Players in the Air Freight Industry

Recent Developments in the Air Freight Procurement Report

• In September 2024, DHL Express invested over EUR 100 million in transport and shipment handling capacity to address increased demand during the end-of-year peak season. The company deployed eight new Boeing 777 freighters as part of its fleet modernisation and expanded its international parcel sorting and delivery network.
• In June 2024, ECU Worldwide, a subsidiary of Allcargo Logistics, established a strategic partnership with ShipBob. This collaboration enhanced ShipBob's e-commerce inventory management by integrating ocean and air freight services through ECU Worldwide's extensive global network. The partnership utilised ECU Worldwide's tech-driven platform, ECU360, to streamline freight operations and provide seamless support to ShipBob's clients across multiple markets.
• In January 2023, Amazon expanded its logistics operations in India with the launch of Amazon Air, a dedicated air cargo service designed to speed up delivery times for customers. The air freight procurement report states that partnering with Quikjet Cargo Airlines and employing Boeing 737-800 aircraft, Amazon established a strong air freight network connecting major Indian cities. This initiative marked a significant advancement in Amazon's continued investment in India's e-commerce market.