Flexport makes bold move to become major player in Asia Pacific air cargo market

In an effort to improve its air cargo service as capacity continues to tighten and rates escalate, the San Francisco-based forwarder Flexport is offering in-house air service on a 747-400F from Los Angeles to Hong Kong.

Beginning April 5th, it will be flying round trip between Hong Kong and Los Angeles, twice per week, to increase capacity and offer guaranteed space.

Spokesmen said that when shippers book with a private provider like Flexport, it controls the shipment end-to-end “at a fair and predictable rate.”

Air cargo analysts are waiting to see if this trend gains traction, however.

"This is indeed an interesting offering. It can simplify a heavy air cargo route and take much of the hassle and simplify the many factors involved,” said Charles W. (Chuck) Clowdis, Jr., managing director, Trans-Logistics Group, Inc.

Clowdis added that “if” the system functions well, and “if” the pricing is in-line with service versus expectations, then similar plans could evolve on other heavily traveled routes.

“As with most innovations, time will tell,” he said. “In the air cargo marketplace, shippers and receivers will expect near perfection from the start. Yes, time will tell and the window of proof is a small one.”

He concluded that Flexport has a good reputation, “so this Hong Kong/LA plan is absolutely worth consideration.”