Why is air freight so expensive?

Mar 11, 2024

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1, High operating costs
The primary reason for the high cost of air transportation is its high operating costs. Airlines need to invest huge amounts of money to purchase and maintain aircraft, and these fixed costs are relatively high. In addition, fuel consumption during flight is also an important expense. Meanwhile, due to the special nature of air transportation, such as safety supervision and pilot training, operational costs have also increased. Therefore, in order to maintain profitability, airlines usually set freight rates at a higher level.
2, Transportation speed and efficiency
Air freight is known for its fast and efficient characteristics. Compared to sea and land transportation, air transportation can quickly deliver goods to their destination, greatly improving logistics efficiency. Behind this speed and efficiency lies the airline's optimized allocation of transportation resources, efficient management system, and advanced technical support. Therefore, the higher air freight prices also reflect the value of their transportation speed and efficiency.
3, Transportation risks and insurance costs
During the air transportation process, goods need to go through multiple stages such as loading, transportation, and unloading, which involve many risk factors. In order to ensure the safety of goods, airlines need to purchase high insurance for the goods. These insurance costs are also included in the air freight cost, leading to an increase in air freight prices.
4, Market demand and supply-demand relationship
Air freight prices are also influenced by market demand and supply-demand relationships. During certain periods, such as peak season or special periods, air freight demand may surge while supply is relatively limited. In this case, air freight prices often increase. On the contrary, in the event of insufficient demand or oversupply, air freight prices may decrease. Therefore, the fluctuation of air freight prices is closely related to the market supply and demand relationship.
5, Transportation distance and route cost
The transportation distance of air freight is usually shorter, but the cost of air routes is relatively high. This is because airlines need to improve transportation efficiency as much as possible on limited routes to reduce costs. Meanwhile, due to the special nature of air transportation, such as takeoff and landing costs, airport usage fees, etc., it also increases the cost of air routes. These factors together result in relatively high air freight prices.
6, Value added services and personalized needs
Air freight services typically include a range of value-added services, such as cargo tracking and customized transportation solutions. These services can meet the personalized needs of customers and improve customer satisfaction. However, these value-added services also require more manpower, material resources, and financial resources, thereby increasing the cost of air transportation. Therefore, the higher air freight prices also reflect the quality and value of the value-added services they provide.
 

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