Air freight is one of the fastest and most reliable ways to move goods across the globe. Whether you’re importing electronics from Japan, exporting machinery to the USA, or shipping luxury goods to South Africa, air freight offers unmatched speed. However, this efficiency comes at a premium. The good news is that there are several strategies you can use to significantly reduce costs when importing and exporting via air freight.
Tips to Cut the Cost of Air Freight
Consolidate shipments
If you send air freight regularly, one of the easiest ways to reduce your costs is by consolidating shipments. Instead of sending multiple small packages, bundle your goods into a single, larger shipment. This can help you take advantage of volume-based pricing and reduce handling charges. Freight forwarders often provide consolidation services, particularly for common trade lanes.
Choose the right incoterms
Understanding International Commercial Terms (Incoterms) can save you from unexpected costs. By using Free on Board (FOB) or Ex Works (EXW) you gain more control over the shipping process. This allows you to select the most cost-effective air freight carriers and routes.
So, if you’re importing air freight from Japan, negotiating FOB terms allows you to select a local forwarder with better rates than the supplier’s default choice. While exporters in South Africa often use EXW to let international buyers handle logistics, which can reduce risk and liability.
Optimise packaging
Air freight rates are based not just on weight. Some airline also charge for volume. Bulky packaging increases costs. Even if your product is lightweight. Using customised, compact packaging can reduce the total volume and save significantly on freight charges.
Make the most of off-peak shipping times
Demand for air freight fluctuates throughout the year. Peak seasons inevitably bring increased costs. This is because of limited space and high demand. By planning ahead and shipping during off-peak periods, you can take advantage of lower rates.
Work with an experienced freight forwarder
A reliable freight forwarder can help your business in a variety of ways. But one of the ways that they can support lower air freight costs is through their networks of trusted partners in key regions. Which means that they can negotiate better rates on your behalf. They can also ensure that your freight takes the most cost-effective routes, and handle customs more efficiently.
Prepare for customs
One of the most common ways to add costs to freight movement is mistakes in customs documentation. When delays at customs occur, you’ll inevitably face additional storage fees and potentially missed deadlines. By making sure that all documentation is complete and compliant with both the exporting and importing country’s regulations, you can easily reduce your overheads.
Compare prices
Never just opt for the first air freight price you’re quoted. There are always different freight options available. If you’re not in a hurry or dealing with perishable goods, look at economy air freight options. It may add a week or two to your delivery schedule, but it can cut notable costs.
While import air freight may initially seem expensive, it’s possible to make savings if you take a strategic approach. So, plan ahead, work with a reputable freight forwarder, and find the services that work for you.
Need support navigating your air freight imports or exports? Get in touch to find out how Plexus Freight can help.
