Global Air Freight Costs Increased, Thanks to Apple

Here’s something for the books. Air freight companies face serious challenges to meet the requirements of delivering millions of Apple’s iPhone 5.

According to the Federal Reserve, transport companies had to add extra planes to their fleet to ensure on-time delivery of iPhone 5 in many parts of the world. The move includes getting chartered flights and cancelling scheduled routes to meet the demands.

The findings appeared in the quarterly health check of the United States economy. The report also showed that the increase in cargo volume is because of the launch of several smartphones and tablets.

According to Martin Dixon, a researcher from Drewry, the air freight industry was on the brink of collapse especially during the 2009 recession. More companies also prefer using sea freight to cut costs.

Thanks to iPhone and other devices, however, the industry has bounced back.

Dixon explained that from August and September of this year, the median cost of air freight from Asia (particularly China) to the west increased about to $3.56 per kilogram. The number is up by seven percent.

Dixon added that once iPhone 5 would be made available in many parts of the world, the figure would be much higher. He said smartphones have significantly contributed to the growth of the air freight industry.

John Manners-Bell, meanwhile, said Apple is now the largest air cargo shipper. Some rumors are also swirling, indicating that the industry is taking steps to ensure that it continues to meet the demands to deliver these devices.

Manners-Bell is Transport Intelligence chief executive.