Last year, a high-volume shipper with strong exports out of the United States saw an opportunity to bring stability to his air cargo business. Instead of using the volatile spot market to secure air freight rates, he signed a two-year contract with a freight forwarder for the 70 percent of his total business that transits through the United States.
With the new business model secured, the company now only looks at the spot market for emergency or heavyweight shipments. The shipper, who did not have permission from his company to discuss the matter on the record, is now looking to contract out the remaining 30 percent of his business.
Cause for contracts
