Flexport's Bold Move: Chartering Its Own Aircraft to Enhance Airfreight Service

The Current State of Airfreight: Challenges and Pressures

In the world of global logistics, the airfreight market is currently experiencing unprecedented pressure. This year has seen extraordinary strain on the industry, with capacity shortages reaching critical levels. These shortages are particularly severe due to a perfect storm of factors: product launches, flight cancellations, and the pre-holiday season peak demand. Adding to this complex situation is the exponential growth of e-commerce, which has been driving up airfreight rates and exacerbating space shortages throughout the year.

The paradox of the peak season is that space availability is at its lowest when demand is at its highest. For many businesses, especially those in retail and consumer goods, inventory readiness is crucial leading into the holiday season. Waiting to ship is simply not an option, as it could mean missing out on the most profitable time of the year.

Flexport's Commitment to Customer Satisfaction

At FreightAmigo, we understand the importance of customer satisfaction in the logistics industry. We've seen how companies like Flexport use innovative methods to ensure they're delivering the best service possible for their clients. For instance, Flexport uses a rolling 90-day Net Promoter Score (NPS) to gauge and improve their service quality. Their current score of 63 puts them on par with some of the most beloved products in the world, including the Apple iPhone.

This dedication to maintaining high service standards informs every aspect of their business operations, from guiding their product roadmap to factoring into their compensation plans. It's a testament to how logistics companies can and should prioritize client satisfaction, especially during challenging market conditions.

A Bold Solution: Chartering Dedicated Freighter Flights

In response to the current market challenges and to maintain their high service standards, Flexport has announced a groundbreaking initiative: chartering their own freighter flights. This move represents a significant milestone for the company and demonstrates their commitment to ensuring reliable service for their customers, particularly during the critical holiday season.

The inaugural flight, scheduled for November 19, 2017, will be a 747-400 freighter departing from Hong Kong to Los Angeles. This single flight will carry approximately 115 tonnes of cargo, equivalent to about 375 pallets. In a market where such capacity is scarce, this represents a substantial boost in available space for Flexport's clients.

The Significance of This Move

Flexport's decision to charter its own aircraft is more than just a short-term solution to current market pressures. It signifies a strategic shift in how Digital Logistics Platforms can operate and serve their clients. By taking control of a critical part of the supply chain - air transportation - Flexport is positioning itself to offer more reliable, flexible, and efficient services to its customers.

This move also demonstrates the company's growth and increasing influence in the airfreight market since its entry in 2014. It showcases their ability to adapt quickly to market conditions and their willingness to invest in innovative solutions to maintain service quality.

Looking Ahead: Implications for the Industry

Flexport's announcement that chartered freighters will become a regular service in 2018 signals a potential shift in the logistics industry. This approach could set a new standard for service in the airfreight sector, pushing other players to consider similar strategies to ensure capacity and reliability for their clients.

For shippers, this development could mean more reliable options during peak seasons and potentially more competitive pricing as logistics providers gain more control over their air cargo capacity. It also highlights the growing importance of Digital Logistics Platforms in shaping the future of global trade.

The Role of Digital Logistics Platforms in Modern Supply Chains

The move by Flexport underscores the increasingly crucial role that Digital Logistics Platforms play in today's complex supply chains. These platforms, including FreightAmigo, are not just intermediaries but are becoming active participants in shaping logistics solutions.

At FreightAmigo, we recognize the importance of such innovative approaches. Our Digital Logistics Platform offers a comprehensive suite of services designed to address the challenges faced by modern businesses in their logistics operations. From comparing door-to-door freight quotes across various transportation modes to tracking shipments in real-time, arranging customs clearance, and providing 24/7 expert support, we strive to offer solutions that adapt to the evolving needs of the market.

The Future of Airfreight: Flexibility and Innovation

As the logistics industry continues to evolve, we can expect to see more innovative solutions emerging to address capacity issues and improve service reliability. The move by Flexport to charter its own aircraft is just one example of how companies are thinking outside the box to meet customer needs.

In the future, we might see more logistics providers taking control of various parts of the supply chain, from transportation to warehousing and last-mile delivery. This vertical integration could lead to more streamlined, efficient, and reliable logistics services.

Embracing Digital Solutions for Logistics Challenges

The current challenges in the airfreight market highlight the need for Digital Logistics Solutions that can provide flexibility, visibility, and efficiency. At FreightAmigo, we're committed to leveraging technology to help our clients navigate these challenges.

Our Digital Logistics Platform combines artificial intelligence, big data, FreighTech, FinTech, InsurTech, and GreenTech to accelerate logistics, information, and cash flow. This integrated approach ensures a hassle-free and enjoyable logistics experience, even in the face of market pressures like those currently affecting the airfreight sector.

Conclusion: Adapting to Change in the Logistics Industry

The airfreight market's current challenges and Flexport's innovative response serve as a reminder of the constantly evolving nature of the logistics industry. As global trade continues to grow and e-commerce reshapes consumer expectations, logistics providers must be ready to adapt and innovate.

At FreightAmigo, we're committed to staying at the forefront of these changes, continually enhancing our Digital Logistics Platform to meet the needs of our clients. Whether you're dealing with document delivery, parcel shipping, or international relocation, our comprehensive suite of services is designed to provide you with the flexibility and reliability you need in today's fast-paced business environment.

As we move forward, the logistics industry will likely see more bold moves like Flexport's aircraft chartering initiative. These developments promise to bring greater efficiency, reliability, and innovation to global supply chains. For businesses looking to stay competitive in this evolving landscape, partnering with a forward-thinking Digital Logistics Platform like FreightAmigo can provide the agility and support needed to thrive in the face of change.