Air Carrier

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What is an Air Carrier?

Air carriers in e-commerce refer to a company or a business that specializes in the transportation of goods by air. This includes both domestic and international shipping services, as well as cargo and passenger services. Air carriers also provide related services such as tracking, storage, and packaging.

Significance of Air Carrier in E-commerce Logistics 

The air carrier is a critical element of e-commerce logistics as it enables the transportation of goods to customers quickly and efficiently. Some of its benefits are:

  • Air carriers provide a range of services that allow for the safe and timely delivery of e-commerce goods, including cargo, express, and air freight services. 
  • Air carriers can also offer air cargo services in remote areas that are not served by other transportation methods. This allows e-commerce companies to reach out to customers in a wider geographical area, increasing their customer base and, ultimately, their revenues. 
  • Air carriers can also provide services such as tracking, tracking visibility, and real-time updates, which help to ensure that customers receive their goods on time. 
  • Finally, air carriers can offer competitive shipping rates, allowing e-commerce companies to keep their costs down.

Prerequisites to Calculate Air Carrier Rates

Prerequisites to calculate air carrier rates in e-commerce include –

  • It is important first to have an understanding of the rate structure of the air carrier that is being used. This includes understanding the various rate components, surcharges, and other fees.
  • The characteristics of the shipment, such as weight, dimensions, value, origin, and destination are needed to calculate the total cost of shipping.
  • Taxes and fees applicable in calculating air carrier rates
  • A widespread global network to handle shipments anywhere.

Use Case With Air Carrier

Global e-commerce relies heavily on air carriers. Airlines generate between 30% – 35% of their revenue through air freight. Among these, e-commerce accounts for 18% of revenue, which is expected to grow more in the coming years. Companies employ air carriers in order to deliver their goods quickly. E-commerce brands use this mode of delivery for any express shipping as it drastically speeds up order fulfillment and reaches the customer when needed.

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