Advantages And Challenges Of Charter Air Transport An Effective Solution To Breaking The Bottlenecks In Air Cargo Logistics

Charter transportation serves as an effective means of air logistics, offering cost-effective and efficient options for bulk cargo through flexible full and partial charters. However, it also faces challenges such as market price fluctuations and policy restrictions.
Advantages And Challenges Of Charter Air Transport An Effective Solution To Breaking The Bottlenecks In Air Cargo Logistics

In today's increasingly globalized world, the efficient and secure transportation of bulk cargo has become a critical challenge for the air freight industry. As competition in the logistics market intensifies, what advantages and challenges does chartered air transport offer businesses?

Chartered air transport, also known as air chartering, involves airlines leasing entire aircraft to single or multiple shippers under contract for cargo transportation between specified routes and destinations. This method proves particularly suitable for bulk cargo shipments, typically offering lower costs than scheduled flights though often requiring longer transit times. Chartered air transport comes in two primary forms: full charter and partial charter.

1. Full Charter

A full charter occurs when an airline leases an entire aircraft to a charterer, transporting goods from one or multiple airports to the destination as agreed. To ensure smooth operations, charterers typically need to contact the airline at least one month before shipment to arrange transportation and complete all necessary procedures.

Full charter costs are generally calculated based on a fixed rate per kilometer, though they may also include empty leg fees. Prices fluctuate according to market supply and demand. To optimize cost structures, shippers should aim to have cargo for both outbound and return flights.

The main advantages of full charters include:

  • Addressing capacity shortages in scheduled flights
  • Transporting all cargo simultaneously, saving time and streamlining distribution
  • Enhancing direct routing to minimize transfers
  • Reducing risks of cargo damage, errors, or loss
  • Alleviating flight shortages during peak seasons
  • Solving transportation challenges for special cargo like fresh seafood and live animals

2. Partial Charter

Partial charters involve multiple air freight companies or shippers jointly leasing an aircraft, or airlines selling cabin space to multiple freight companies for shared cargo loading. This approach works well when cargo volume approaches but doesn't fully occupy an aircraft's capacity.

Compared to scheduled flights, partial charters typically require more time. While they often follow fixed schedules, various factors may cause delays. Additionally, many countries impose strict restrictions on foreign airline charter operations to protect domestic carriers, limiting charter activities and requiring special permits for landings at non-designated locations.

In summary, chartered air transport offers flexible operational models that provide efficient and economical solutions for bulk cargo transportation, despite challenges related to costs and flight restrictions. As logistics demands continue to grow, chartered air transport is poised to play an increasingly vital role in the air freight industry.