AirBridgeCargo, CLA embark on freight density test with cargo.one

[caption id="attachment_14405" align="alignright" width="544"] AirBridgeCargo and CargoLogic Air will begin making spot market capacity and rates visible and instantly bookable through air cargo booking and marketing platform cargo.one.[/caption] All-cargo carriers AirBridgeCargo and CargoLogic Air have taken the plunge and will begin making spot market capacity and rates visible and instantly bookable through air cargo booking and marketing platform, cargo.one . Although combination carriers have been warming up to the idea for some time, the move represents a major pivot for all-cargo carriers, which have historically depended heavily on close relationships with freight forwarders to market available capacities. While integrating with a digital booking platform is likely to increase the number of customers a carrier is directly working with, the long-term impact on consolidations and freight densities – arguably of greater import – remains to be seen. Even though both Volga-Dnepr Group affiliate carriers will make available capacities visible and bookable on a flight-by-flight basis through the platform, there is no indication that an all-cargo carrier’s presence on a digital booking platform will immediately alter relationships with larger forwarders. Most larger forwarders continue to negotiate long-term contracts for the bulk of their shipments. ABC and CLA, in turn, will make available any remaining capacity after existing forwarding contracts. At least initially, small forwarders are positioned to benefit from the increased visibility of spot rates across a growing number of carriers. AirBridgeCargo and CargoLogic Air, meanwhile, are optimistic that shipments organized by smaller forwarders will boost load factors on its scheduled flights. In the past, a forwarder without contract space on a flight could have avoided calling up a carrier to spot quote capacity by booking space with a competitor that had the capacity under contract. Under such a scenario, smaller shipments would have been absorbed into larger consolidations, although it is unclear in practice how smaller shipments can be effectively bundled. See also: Digital cargo booking gains ground On a round-table panel discussion presented at this year’s Cargo Facts EMEA, speakers on a panel, titled “Breaking Barriers to Airfreight Through Global Collaboration,” agreed that digital booking platforms would likely soon make sense even for all-cargo carriers . Digitizing a forwarder’s role in building up consolidations before they are loaded onto the aircraft, however, still remains a physical service that is tough to replicate. If spot rates still represent a healthy premium for carriers, and a discount for low-volume shippers, digital platforms may prove to be beneficial for all parties involved.

AirBridgeCargo, CLA embark on freight density test with cargo.one

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3 fleet plans unveiled through plane sightings [VIDEO]

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Related Posts

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CARGO FACTS CONSULTING

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Pax freighters deliver capacity ‘lifeline’ to secondary markets

Follow Us