Air Transport of Perishables

Justification For A Perishables Strategy

Speed and constant temperature are the keys to success in shipping time-sensitive goods like flowers, seafood, and fresh fruits (Cohan 10). As an example, on Valentine's Day the temperature in Minneapolis hovers around 20 degrees Fahrenheit; yet many of the city's residents want to celebrate the holiday with red roses that must be shipped from warmer climes. Roses for Minneapolis in mid-winter come primarily from Mexico. The Mexican border is 1,500 miles from Minneapolis, which leaves two delivery choicesùair cargo or truck. While truckers have developed refrigeration technology to carry flowers and other perishable commodities safely, roses are delicate even by floral standards. Air cargo is used more frequently for roses, because they are more perishable. A similar case may be made for other time-sensitive products.

The demand in Minnesota for roses in mid-winter is just one of many examples of an increasing worldwide consumer market for specialty products regardless of the season (Cohan 11). Besides flowers, seafood, produce, frozen food, dairy products, and baked goods, industrial items like film are providing big business for air freight carriers and forwarders that s

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tification of air transport is not so much the value of the item itself but the value to the consignee in having it exactly when needed (Nelms 26-29). In many instances, the cost of shipping low-cost items by air is more than offset by savings from reduced inventory. Paradoxically, as this time-definite service expands, average inflation-adjusted yields will continue to decline due both to price competition within product categories and to the increasing proportions of lower-yielding, non priority but still time-definite, traffic. This trend is causing companies to take a new look at transportation budgets, spending more for air transport, which did not appear justifiable in the past. Logistics is becoming the major competitive edge. It is the only place to make major improvements in the competitive position, and transportation budgets are being increased to improve logistics. The Air Cargo Market and Perishables In the domestic market in the United States, the integrated carriers now dominate (92 percent market share), with their ability to be the one-stop shipper for a customer (Nelms 26-29). The one-stop concept is being expanded into the logistics arena, to include areas such as warehousing and inventory control; thu
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Approximate Word count = 2200
Approximate Pages = 9 (250 words per page)

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