Insights on All-in Rates for Air Freight Forwarders

Thursday, 26 February 2015, 08:00

In an interview with VerkehrsRundschau, Michael Hollstein from UTi Worldwide discusses the implications of all-in rates based on weight for air freight forwarders. He highlights both the advantages, such as predictable pricing, and the disadvantages, such as potential cost inefficiencies. The article emphasizes the need for freight forwarders to evaluate these rates in relation to their specific business models. Ultimately, understanding all-in rates can help forwarders make more informed decisions in a competitive market.
Verkehrsrundschau
Insights on All-in Rates for Air Freight Forwarders

The Impact of All-in Rates on Air Freight Forwarders

In an insightful interview, Michael Hollstein from UTi Worldwide elaborates on the various aspects associated with all-in rates for air freight forwarders. These rates, usually calculated based on kilograms, are becoming increasingly common in the logistics industry.

Advantages of All-in Rates

  • Predictable Pricing: Forwarders can anticipate their costs more accurately, helping in budgeting and planning.
  • Streamlined Processes: Simplifying the pricing model can lead to a smoother operational experience.

Disadvantages of All-in Rates

  1. Cost Inefficiencies: Depending on the shipment details, flat rates may not always prove beneficial.
  2. Market Competitiveness: Forwarders need to adapt to market changes despite fixed rates.

In conclusion, while all-in rates offer certain advantages, air freight forwarders must carefully consider their unique business various factors before fully committing to this pricing structure.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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