Air Freight Forwarding Explained: Roles, Benefits, & Best Practices

Air freight forwarding is at the forefront of international trade as the vital link between companies and markets worldwide. You should take advantage of this fastest mode of transport to expand your business beyond borders. 

Industry experts claim that the air freight forwarding market size will be USD 110.91 billion in 2024 and grow to nearly USD 147.35 billion by 2029, depicting a 4% CAGR during the 2024-29 forecast period. 

Air freight forwarding requires attention to detail, record-keeping, superior organisation, and compliance with regulations and international shipping standards on your behalf. 

So, does your business need an air cargo freight forwarder? Let’s find out how air forwarding services can take the burden off you, maximise your business’s potential, and grow your profit margins.

What Does Air Freight Forwarding Mean?

Air freight forwarding is a service that helps you transport your goods across different cities or countries by air. This air shipping is usually carried out by air cargo freight forwarders, who pay attention to all details like booking aircraft space, setting up pickup and delivery, and managing customs and other documentation.

They also help you out with supply chain processes, including warehousing or storage, insurance, packing, customs clearance for air freight shipments, inventory management, export-import paperwork, planning, and organising freight transport to and from via air.

Key Responsibilities of an Air Freight Forwarder

The duties of an air cargo freight forwarder begin with keeping a constant check on shipments. Air forwarding firms or agents use a Transportation Management System (TMS) to provide visibility at every stage of the air forwarding process. 

You stay updated with real-time data on the status of your shipment and can further inform your customers as well. It helps forwarders rectify any issues during the shipping journey immediately to land goods at their final destination in a timely and perfect condition.

The air cargo freight forwarder needs to obtain a customs brokerage licence, as only a licenced customs broker qualifies to process the export-import documentation. They also need to stay updated with the ever-changing air freight forwarding regulations in different shipping destinations within or outside the country to speed up the customs clearance process and ensure legal compliance. These firms or agents also take care of any other paperwork required for air freight forwarding.

Another responsibility of air cargo freight forwarders involves negotiating the best airline rates for their clients, which requires skills and connections. They have plenty of experience dealing with carriers and bargain with them on your behalf by appealing to the carrier’s interests. They juggle the pros and cons of your cargo type, time flexibility, credit status, space requirements, and more to get you a cracking deal.

Air freight forwarders do meticulous warehouse planning. It’s your air cargo forwarder’s responsibility to arrange a proper storage facility before the cargo onboards the aircraft and after it touches down at the final destination. 

They ensure goods are stored in a location that is conveniently accessible from the airport. In fact, some air forwarding companies, like CargoX, also offer self-owned warehouses to fulfill their clients’ air shipping needs.  

But the air cargo freight forwarder’s role doesn’t end here. When you opt for an air forwarding company or agent to do the complicated work for you, they also act as strategic logistics planners and make strategic plans to gauge if consolidating your shipment is profitable for you or not. 

A well-established air forwarding company may serve many customers at once who are sending shipments that may not need full shipping containers. So, air cargo freight forwarders consolidate the freight for less-than-container-load (LCL) shipments, where they accommodate many small consignments in the same container, and the shippers pay their share of the total cost. 

Moreover, air cargo freight forwarders are also responsible for getting you cargo insurance. They are eligible to provide this cargo insurance policy, which is called freight insurance. It helps cover any loss of goods or damage during shipping.

The air cargo freight forwarder prepares the cargo by creating the Air Waybill, which legalises and authenticates the shipment transport. 

It’s required to provide the decided contract terms, liabilities, and conditions of the people involved in the process. It also acts as proof of delivery for the carrier, handling and invoicing instructions, and a customs certificate and insurance document when needed.

Finally, the air cargo freight forwarder correctly labels and packages your cargo and clears the goods for export and import, if necessary.

Top Practices for Effective Air Freight Forwarding

This is how you can take advantage of efficient air freight forwarding:

1. Consolidating Shipments

Consolidating shipments in air forwarding means adjusting your shipment into a large container with other small shipments to free up space within air freight carriers. With this air freight forwarding strategy, each shipper gets a chance to reduce costs as all of them divide and share the expenses. It also helps you contribute to reducing the carbon footprint by making each flight more efficient.

2. Getting the Packaging Right

If your packaging is done right and radiates efficiency, it helps with waste reduction and process efficacy. It cuts down the cost of material used and even affects the volumetric weight of shipments, which helps alleviate your overall air forwarding costs. 

Moreover, a thorough analysis of the packaging design can protect your goods and minimise packing material used simultaneously, which reduces the economic and environmental costs during transportation.

3. Building Strategic Carrier Alliances

This strategy involves establishing and nurturing long-term relationships with carriers that provide mutual benefits. With a shared understanding and alignment of business goals, you can negotiate rates better and get better service in such collaborations. 

You may even get some extra perks, like special treatment and a competitive advantage in air shipping, by building solid relationships through ongoing interactions. It’s almost like creating a network and enjoying the fruit of those bonds. 

4. Have Your Documentation Sorted

Preparing and submitting accurate customs and other shipping documents is the backbone of air freight forwarding. To avoid customs delays, you must get this step right by properly completing all documents, including airway bills, packing lists, and commercial invoices. 

Using electronic air waybills (eAWB) to hand over documents electronically is a great way to speed up the air forwarding process and curtail paper waste.

5. Stay Abreast with Regulatory Requirements

Regulatory requirements are volatile and change over time, and they may vary between countries or cities, which affects shipping to those destinations. So, you must have knowledge and updates about international and local regulations, including customs rules, security measures, and hazardous goods handling. 

It’s a good idea to obtain industry certifications, like IATA accreditation, to increase your credibility and comply well with air forwarding standards. For instance, air cargo freight forwarders, like Shiprocket’s Cargo X, often have skilled professionals and software to stay up to date with these regulations. 

6. Take Security Measures and Manage Risks 

Take note of the risks that may accompany your supply chain to have a backup plan for possible disruptions. Follow thorough screening procedures to ensure security and adhere to regulations. 

Acquaint your staff with necessary security protocols and ensure that handling and storage facilities align with security standards. Safeguarding your goods in transit also requires obtaining adequate insurance.

7. Mitigating Cost in Off-Peak Periods

Off-peak periods are when carrier demand is potentially low, which gives you the opportunity to negotiate lower air freight rates. You can try to temporarily accommodate air shipping schedules to exploit the natural fluctuation in demand within the air freight market. 

However, you’ll need a nuanced understanding of the market dynamics and readiness to use this temporal flexibility for cost efficiency.

8. Upgrading Technology

Advanced technology is a game changer in logistics and air forwarding processes. With upgraded technology, such as tracking systems, AI and machine learning, you can automate and simplify complicated systems. It helps you do better route planning, automate tracking, and optimise your operational logistics. 

Moreover, integrating new-age technology can even improve and quicken your decision-making processes.

9. Data-Centric Logistics Approach

When you implement data-driven logistics for your air forwarding, you are empowered with big data analytics for strategic business decision-making. It helps you systematically analyse shipping data to reveal inefficiencies, predict trends, and do more. 

You can observe relevant data and refine your logistical processes and previous performance while making necessary changes wherever and whenever required.

Advantages of Air Freight Forwarding

Here are a few benefits of air forwarding for your business:

1. Speedy Deliveries: Air freight forwarding is popular for being the fastest mode of shipping, especially when it comes to international shipping and time-sensitive deliveries.
2. Global Reach: Air shipping connects to almost all international locations, including remote ones.
3. Reliable Mode: Airlines and airports have stringent schedules, which is a plus when you want your cargo to land on time.
4. Security Protocols: Airports are technically safe spaces for cargo and even travellers because of their consistent and strict security checks. These checks negate or alleviate the risk of theft or damage to your goods.

How Can CargoX Assist with Your Air Freight Forwarding?

When you pick your air cargo freight forwarder, you must look at all the services under their blanket, their reputation, pricing, and the benefits you get. Partner with CargoX, a 360-degree air forwarding company with a solid record of success, as well as responsive and supportive customer care. We have experience handling all types of air cargo with no weight restrictions.

Moreover, we give you and your customers full visibility of the shipment and real-time shipping updates through our avant-grade tracking system. You can sit back and relax as we take charge and offer you affordable rates, easy documentation, crystal-clear invoicing, an extensive global courier network and reach, unrivalled dispute management, and more.

Conclusion

Air freight forwarding is the best option when you want your orders to reach your customers locally or internationally quickly, reliably, and securely. It’s an ideal way of shipping goods for businesses of all sizes.

However, the intricate, complicated, and costly air forwarding processes can take a toll on you. So, it’s a good idea to collaborate with a well-known air cargo freight forwarder to take over and smoothen the shipping process for you while making it cost-effective.