As air freight becomes dearer, companies turn to cheaper alternatives

New Delhi: As the grip of global economic slowdown tightens, companies are increasingly moving their cargo from air to cheaper alternatives, such as sea, rail and road.
This shift is a clear indicator of how cost-cutting measures are shaping company supply chain policies in current times, which, in turn, is altering the business mix of logistics majors, such as DHL and FedEx, forcing them to innovate and improve offers on the ocean route.
“Our FedEx Trade Network is handling more traffic, mainly out of Asia, on the ocean. But some of the traffic has shifted from international priority into international deferred, and we're adjusting our network to handle that and handle it more profitably,” Mr David J. Bronczek, President and CEO, FedEx Express, said in a recent analyst call.
26/07/12 Mamuni Das/Business Line

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Categories: Cargo Jul 2012