FTW Pick: Shippers seek alternatives amid airfreight capacity crunch
10 Jul 2018 - by
Amid the ongoing airfreight capacity crunch, shippers are increasingly on the hunt for charter flights – and alternative shipping strategies – and are putting huge pressure on forwarders to ensure they guarantee space throughout the year.
If they don’t, shippers may follow Amazon’s example and take matters into their own hands, at least to some extent.
Two years ago, the United States Federal Maritime Commission granted the e-commerce company’s request to become its own non-vessel operating common carrier (NVOCC) and freight forwarder between China and the US – which allows the retailer to directly negotiate rates and secure capacity with ocean and airfreight carriers.
Satish Jindel, president of SJ Consulting Group, believes that because of the capacity crunch and rising airfreight rates, Amazon.com will increasingly control more of its supply chain rather than using third parties.
“Part of what Amazon is doing as an NVOCC, freight forwarder and broker is part of a bigger logistics picture of being everywhere in the supply chain so it can provide the seller the best experience.