Air Freight from China to Germany: A Guide for Supply Chain Managers
Air freight is one of the fastest and most reliable modes of transportation for international trade. It offers many advantages for supply chain managers who need to move goods from China to Germany, such as speed, flexibility, security, and reduced inventory costs. However, air freight also comes with some challenges, such as high costs, environmental impact, capacity constraints, and complex regulations. In this article, we will explore the benefits and drawbacks of using air freight for your supply chain, as well as some tips and best practices to optimize your air freight logistics from China to Germany.
Advantages of using air freight for supply chain management
Air freight has several benefits for supply chain managers who need to transport goods from China to Germany, especially for time-sensitive, high-value, or perishable products. Some of the advantages of air freight are:
Speed: Air freight is the fastest mode of transportation, as it can deliver goods from China to Germany in a matter of hours or days, compared to weeks or months by sea or rail. This can help you meet customer demand, reduce lead times, and improve customer satisfaction.
Flexibility: Air freight can offer more flexibility and convenience for your supply chain, as it can access more destinations, operate on more frequent schedules, and accommodate changes or emergencies more easily than other modes of transportation. You can also choose between different types of air freight services, such as express, standard, or charter, depending on your needs and budget.
Security: Air freight is one of the most secure modes of transportation, as it has less risk of theft, damage, or loss than other modes of transportation. Air freight also has stricter security measures and controls at airports, which can reduce the chances of smuggling, fraud, or terrorism.
Reduced inventory costs: Air freight can help you reduce your inventory costs, as you can ship smaller quantities of goods more frequently, rather than storing large amounts of goods in warehouses or distribution centers. This can help you optimize your inventory levels, avoid overstocking or understocking, and reduce warehousing and handling costs.
Air freight statistics and market trends
Air freight is a significant and growing segment of the global logistics market. According to the International Air Transport Association (IATA), air freight accounted for about 35% of the total value of global trade in 2019, despite representing only 1% of the total volume of trade. The global air freight market was valued at $270 billion in 2019, and is expected to reach $371 billion by 2027, growing at a compound annual growth rate (CAGR) of 4.9%.
China and Germany are two of the largest and most important markets for air freight, both as origin and destination countries. China is the world’s largest exporter and the second-largest importer of goods, while Germany is the third-largest exporter and the fourth-largest importer of goods. According to the World Bank, China exported $2.5 trillion and imported $2.1 trillion worth of goods in 2019, while Germany exported $1.5 trillion and imported $1.2 trillion worth of goods in 2019.
The air freight trade between China and Germany is also substantial and growing. According to the International Trade Centre (ITC), China exported $16.4 billion and imported $8.9 billion worth of goods by air to and from Germany in 2019, making Germany the third-largest destination and the fourth-largest source of air freight for China. Similarly, Germany exported $9.4 billion and imported $15.6 billion worth of goods by air to and from China in 2019, making China the second-largest destination and the second-largest source of air freight for Germany.
The main commodities that are traded by air between China and Germany are machinery and electrical equipment, vehicles and parts, pharmaceutical products, optical and medical instruments, and plastics and articles thereof. These products are typically high-value, low-weight, or time-sensitive, which makes them suitable for air freight. The main airports that are involved in the air freight trade between China and Germany are Shanghai Pudong International Airport, Beijing Capital International Airport, Guangzhou Baiyun International Airport, Frankfurt Airport, Munich Airport, and Cologne Bonn Airport.
The air freight trade between China and Germany is expected to continue to grow in the future, driven by factors such as the increasing demand for e-commerce, the development of new technologies and products, the expansion of air cargo capacity and infrastructure, and the strengthening of bilateral relations and cooperation. However, the air freight trade between China and Germany also faces some challenges, such as the impact of the COVID-19 pandemic, the rising costs and competition of air freight, the environmental and social concerns of air freight, and the regulatory and political uncertainties of international trade.
Factors to consider when choosing an air freight provider
Choosing the right air freight provider is crucial for your supply chain management, as it can affect the cost, quality, and efficiency of your air freight logistics from China to Germany. There are many factors that you should consider when selecting an air freight provider, such as:
Reputation and reliability: You should choose an air freight provider that has a good reputation and track record in the industry, as well as a high level of reliability and punctuality. You can check the reviews, ratings, and references of the air freight provider, as well as their performance indicators, such as on-time delivery rate, cargo loss rate, and customer satisfaction rate.
Experience and expertise: You should choose an air freight provider that has extensive experience and expertise in handling air freight from China to Germany, as well as the specific products and markets that you are dealing with. You can ask the air freight provider about their qualifications, certifications, and accreditations, as well as their knowledge and skills in areas such as customs clearance, documentation, packaging, labeling, and insurance.
Network and coverage: You should choose an air freight provider that has a wide and strong network and coverage in both China and Germany, as well as other countries that are involved in your supply chain. You can check the air freight provider’s partnerships, alliances, and affiliations with other airlines, freight forwarders, agents, and carriers, as well as their access and availability to different airports, terminals, and warehouses.
Services and solutions: You should choose an air freight provider that can offer you a range of services and solutions that suit your needs and preferences. You can check the air freight provider’s options and features, such as the type of air freight service (express, standard, or charter), the transit time, the frequency, the routing, the capacity, the cargo handling, the tracking and monitoring, the insurance, and the customer support.
Cost and value: You should choose an air freight provider that can offer you a competitive and transparent cost and value for your air freight logistics from China to Germany. You can compare the air freight provider’s rates and fees, as well as their value-added services and benefits, such as discounts, incentives, rewards, and guarantees. You should also consider the hidden and additional costs, such as fuel surcharges, security fees, customs duties, taxes, and penalties.
Streamlining your supply chain process from China to Germany
Streamlining your supply chain process from China to Germany can help you improve your efficiency, quality, and profitability of your air freight logistics. There are some steps and tips that you can follow to streamline your supply chain process, such as:
Plan and forecast: You should plan and forecast your air freight demand and supply, as well as your budget and resources, for your air freight logistics from China to Germany. You should consider factors such as the seasonality, the market trends, the customer preferences, the product specifications, and the inventory levels. You should also align your air freight strategy with your business goals and objectives, and communicate them clearly with your stakeholders and partners.
Select and negotiate: You should select and negotiate with your air freight provider, as well as your other supply chain partners, such as your suppliers, manufacturers, distributors, and customers, for your air freight logistics from China to Germany. You should establish and maintain a long-term and mutually beneficial relationship with your air freight provider, and leverage your bargaining power and volume to get the best deal and service. You should also review and evaluate your air freight provider’s performance and feedback regularly, and make adjustments and improvements as needed.
Prepare and comply: You should prepare and comply with the requirements and regulations for your air freight logistics from China to Germany, such as the customs clearance, the documentation, the packaging, the labeling, and the insurance. You should ensure that your goods are properly classified, declared, valued, and inspected, and that you have the necessary permits, licenses, and certificates for your air freight. You should also follow the standards and guidelines for your packaging and labeling, and protect your goods from damage, theft, or loss. You should also obtain adequate and appropriate insurance coverage for your air freight, and understand the terms and conditions of your policy.
