Domestic vs. International Air Cargo Shipping
There are several major differences between domestic and international air cargo shipping. Shipping via air can cost between 6 to 10 times more than by truck and can cost up to 15 times as much as by sea. The trade-off is time. Domestic air cargo competes much more often with trucking as the time savings can be less dramatic and shippers balance the time vs. cost equation.
When compared to international shipping, domestic air cargo has the following characteristics:
- Domestic air cargo is dominated by integrated express carriers. Competition among integrated carriers is driven by guaranteed overnight or other time-definite delivery to almost any location. This creates a concentration of ground traffic within a region as trucks bring the packages to the airport at the last possible minute.
- Domestic air cargo is less influenced by forwarders. The domestic process is much simpler than international, and freight forwarders are often times not needed.
- Domestic air cargo includes a large trucking component, which can create substantial ground traffic demands on the airport’s aeronautical infrastructure. The design and location of an airport’s cargo facilities and ground distribution system are important.
Conversely, one of the keys to successful international shipping is clearance by federal agencies such as Customs and Agriculture. More information can be found in The Players in the Air Cargo Industry section. Easy and timely access for inspection at an airport is vital. In the international market, freight forwarders are an important link between manufacturers, shippers, and logistics operations. Freight forwarders and the non-integrated carriers control the majority of international cargo. However, integrated express carriers are a growing segment of the international market and will accept shipments directly from shippers and will occasionally take bookings from forwarders.